STAFF REPORT: Engineering and Parks EV Truck Purchases

ENGINEERING AND PARKS EV TRUCK PURCHASES

RECOMMENDATION:

THAT Council approve up to $141,000 net of GST, trade-in allowance, and insurance payout for the purchase of two (2) Chevrolet Silverado EV work trucks from Jenner Chevrolet Buick GMC Ltd. (View Royal) to replace Parks’ 2019 Chevrolet Silverado 1500 truck and Engineering’s 2010 Nissan Frontier truck, funded from the Machinery and Equipment reserve.

AND THAT the 2024-2028 Financial Plan be amended accordingly.

PURPOSE:

The purpose of this report is to seek authorization to purchase two (2) Electric Vehicle (EV) work trucks, which requires an amendment to the 2024-2028 Financial Plan (Project Summary C-031).

BACKGROUND:

Per the Fleet Replacement Plan, the 2010 Nissan Frontier, a work truck used by the engineering department for sanitary sewer and drainage maintenance, is expected to be replaced this year. Staff have identified that an EV work truck would be a suitable replacement to the 2010 Nissan Frontier. The current replacement budget is $55,000.

Per the September 3, 2024 regular Council Meeting, Council directed staff to seek the purchase of an EV work truck to replace the 2019 Chevrolet Silverado 1500 parks truck that was written off as a result of a motor vehicle incident.

DISCUSSION:

The Town has been on the waiting list to reserve an EV truck with the local Jenner Chevrolet Buick GMC dealership (in View Royal) for over a year and a half. The truck has finally arrived and at the time of the creation of this report, is still available to the Town for purchase.

The dealership can secure another Chevrolet Silverado EV Work Truck from their partner dealership on the mainland. Staff recommend that both trucks be the same make / model and purchased by the same dealership to (1) reduce the variability in servicing needs, and (2) reduce the variability in vehicle operations, thus improving ease of use for staff.

The cost breakdown and suggested budgeting for both trucks are summarized below:

Parks Truck Replacement (not in current budget): Recommended Budget (Selling price, additional equipment purchases, 5% contingency, net of ICBC payout): $61,000 net GST

Engineering Truck Replacement (current budget $55,000): Recommended Budget (Selling price, shipping fees, additional equipment purchases, 5% contingency, net of vehicle trade in): $80,000 net GST

Staff recommend a budget of $141,000 to purchase two (2) new Chevrolet Silverado EV trucks, net of GST, ICBC payout and vehicle trade in. A detailed breakdown is summarized in Attachment 1.

A single source to the local Jenner Chevrolet Buick GMC dealership is still supportable in the Town’s Purchasing Policy #1600-021 because (1) the Town receives the best value for money spent; (2) an emergency purchase is now required to maintain community expectations, equipment resources and staff safety, especially with the upcoming wet season approaching; and (3) sustainable procurement is being considered, leveraging procurement dollars to benefit the local community and society and taking environmental considerations into account.

ANALYSIS:

Impacts and implications can be summarized as follows:

Community Impact: Level of service within the Parks department will slightly decrease due to the reduced truck box size. Staff will be securing additional equipment to mitigate this issue (i.e. rear hitch baskets and truck box racks to improve storage capacities).

Financial Implication: The Parks truck replacement is an unforeseen circumstance. Therefore, the purchase of an EV truck will impact the Machinery and Equipment Reserve by 100% of the cost (up to $61,000).

The Engineering vehicle is already scheduled in the 2024 budget for replacement (budget: $55,000). Therefore, only a fraction of the EV truck purchase would impact the Machinery and Equipment Reserve (up to $25,000).

Staff are researching the potential procurement of a Class 3 electrified vehicle that is suitable to replace the Ford F350 Dually Dump Truck. An increase in budget is expected and an option to revise the budget for the F350 Dually Dump Truck will be provided as part of future budget deliberations.

Significant electrical upgrades will be required to Town Hall to provide basic charging for an electrified fleet (both present and future). Costs are being investigated, and Attachment 2 presents a placeholder amount within the vehicle replacement plan for the upgrades, to be discussed at future budget deliberations.

ALIGNMENT:

The recommended option aligns with the Town’s following core guiding documents as follows:

Strategic Plan: Strategic Priority C, Goal 1: Respond to the declared climate action emergency by reducing greenhouse gas emissions in our community.

PUBLIC PARTICIPATION GOAL:

Should Council approve the purchase of an EV truck, the Town would inform the community of its continued work to reduce GHG emissions to support the strategies and policies identified above.

TIME CRITICAL:

Time is of the essence to replenish the Parks’ vehicle fleet. It is now considered to be an emergency purchase to reinstate levels of service in preparation for the wet season.

ATTACHMENTS:

1. Cost Breakdown Summary
2. Draft Revision to Vehicle Replacement Plan (Project Summary C-031)