BONNYVILLE - The MD of Bonnyville has committed just over $1.3 million for two new pumper trucks for the fire department, after what Reeve Greg Sawchuk described as months of unacceptable delays.
Council approved $1,326,317 for the trucks, one being equipped to service rural areas and the other for industrial areas. The final cost was $147,073 more than the Bonnyville Regional Fire Authority (BRFA) had expected because the cost of the trucks soared this year, as did the cost of other municipal equipment.
Although the $1.3 million wasn't part of the 2021 municipal budget, councillors heard that the MD has been saving up for these trucks since 2007 and had more than $1 million in its equipment replacement reserve for them. There was also enough money in the reserve to cover the added cost.
“I think we have to ensure that we have these trucks in line so that we see them in our budget every time, and somehow streamline the process of procurement, because right now it is very cumbersome,” Sawchuk said.
“Because of the added costs that we're seeing, we're taking an extra big chunk out of our equipment reserve. That's going to cut into other equipment that the MD needs to purchase, and eventually we're going to have to – we know it's coming, the cuts to our revenue – pull in the reins and just watch where we spend on everything.”
Sawchuk told Lakeland This Week that provincial tax breaks for oil companies mean the MD of Bonnyville is expecting approximately a $5-million drop in revenue this year, as well as revenue drops in subsequent years.
The cost increase for these trucks isn't the only price hike the municipality is facing. On Aug. 11, councillors also approved $25,560 to cover unexpectedly high costs for two Caterpillar CW16 packers. The total cost for those two was $295,560.
Sawchuk said those increased prices follow a trend that developed in the past year.
“We're not really sure why there's such an inflation in the cost – we're talking anywhere from eight to 15 per cent in one year. That seems like an awful lot,” he said. The fire units are expected to go up again in price this year as well.
“We're looking at a continual price increase, and I've actually seen a study on that same thing, where they're suggesting that that increase in fire apparatus is unsustainable for most municipalities.”
Although the BRFA is currently in the midst of a governance review, right now the way procurement works is that the BRFA tells the municipality what it needs, and the municipality funds it.
Chief administrative officer Al Hoggan suggested council might want to consider creating a fire service standard, since without that there are no guidelines to say whether the equipment requested is what's needed.
“This is one of the only systems that I'm aware of in the MD of Bonnyville that our procurement department doesn't procure the vehicles,” he said.
“We are the funder and the funder only.”
With such a large price tag attached to the purchase, several council members felt the municipality should have more oversight over what's procured.
Ward 2 Coun. Darcy Skarsen said the MD got an extra year out of the trucks these new ones will replace – their lifecycle was 15 years, but they'll be replaced after 16 – but he struggled with not being able to scrutinize the deal.
“This is a pretty significant amount of money,” he noted.
Ward 1 Coun. Mark Jubinville said it would have been nice to see what other options were out there, but was in favour of moving ahead with the purchase.
“It is a lot of money when you look at just a couple units, but I know we have basically budgeted for it, it is in reserve, and we have to count on our professionals that are in the business to tell us what they need,” he said.
The municipality intends to sell the two pumper trucks that are being replaced, though the price they expect to get for those was not discussed.
Sawchuk said depreciation is very high for items like pumper trucks, although they are in excellent condition.
“At the 15-year mark, most of these items are selling for $50,000 or less,” he said.
The funding for the new trucks passed 6-1, with Ward 4 Coun. Edward Duchesne voting against.
