HomeMy WebLinkAboutINS-2024-370 - Pre-Approval to Purchase a 2025 Forestry Aerial Bucket Truck
Infrastructure Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: August 26, 2024
SUBMITTED BY: Matthew Lynch, Director Fleet, 519-741-2200 ext. 4679
PREPARED BY: Evan Zinn, Manager Fleet Planning, 519-741-2200 ext.4780
Ryan Hagey, Director of Financial Planning and Asset Management
Brad Palmer, Corporate Financial Advisor
Joshua Shea, Manager Forestry and Natural Areas Management
WARD(S) INVOLVED: All
DATE OF REPORT: August 14, 2024
REPORT NO.: INS-2024-370
SUBJECT: Pre-Approval to Purchase a 2025 Forestry Aerial Bucket Truck
RECOMMENDATION:
That the purchase of a 2025 forestry bucket truck be pre-approved with a budget of
$255,000 as outlined in report INS-2024-370.
REPORT HIGHLIGHTS:
The purpose of this report is to obtain pre-approval of 2025 budget funding to procure a
forestry aerial bucket truck to meet current operational requirements.
Pre-approval is being sought to secure more favourable pricing, accommodate an on ground
ready to deliver unit, avoiding the long production time due to supply chain challenges.
This report supports the delivery of core services.
BACKGROUND:
One (1) additional forestry aerial bucket truck was requested during the 2024 Equipment Review
process to help the City better manage its urban forest. Forestry requires a defined style of
aerial truck platform based on its intended use of the unit. These units are custom built to meet
operational requirements of reach and size to work within the right of way and woodlots of the
municipality.
The Forestry request was deferred to the 2025 Equipment Review due to limited funding for new
units and other competing priorities. At the time of deferral, it was expected this unit would be
prioritized for approval through the 2025 Equipment Review Process.
This request is being brought forward mid-year as the City has a unique opportunity to purchase
an aerial truck that meets its specifications and has already been manufactured (known as an
unit occurred in 2022 and has yet to be delivered due to supply chain shortages and long lead
times of both the aerial device and truck chassis. The procurement of an on-ground unit is seen
as a strategic opportunity that provides financial savings in addition to the following benefits:
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Mitigating supply risks and price escalations
Time savings in specification development and reduced engineering costs
Time savings in contract administration through the entire build process
Stabilizing the sourcing exercise
Increased operational readiness.
Reduced operational costs for equipment maintenance past lifecycle.
REPORT:
Supply chain and labor issues continue to impact the manufacturing of heavy truck chassis as
well as aerial devices, which has led to unprecedented production lead times. In the past,
production had been 10-14 months depending on size and complexity of the truck.
Manufacturers have confirmed that the lead time on this type of apparatus is now 24-30
months from issuance of a purchase order.
Purchasing an on-ground unit removes supply chain risks completely. Staff are recommending
the pre-approval of funding to allow the procurement of the aerial truck. This will provide the best
possible opportunity to reduce costs and secure a unit for service. Any advanced funding
approved in 2024 would be offset by the removal of this ask in the 2025 Capital Budget.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The total cost of the aerial truck is $255,000 and will be funded by the Equipment Reserve. This
will increase the draw on the reserve in 2024 but reduce the draw in 2025 by the same amount.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Denise McGoldrick, General Manager of Infrastructure Services