HomeMy Public PortalAboutLandfill Equipment Replacement Policy P-107_Effective 2022-06-23Municipality of the District of Chester
Landfill Equipment Replacement
Policy
Policy P-107
Effective Date: June 23, 2022
Policy P-107 - Landfill Equipment Replacement Policy (continued) Page 12
MUNICIPALITY OF THE DISTRICT OF CHESTER
LANDFILL EQUIPMENT REPLACEMENT POLICY
1 PURPOSE
1.01 The Landfill Equipment Replacement Policy establishes a framework and guide for the
maintenance, repair, and replacement of landfill equipment.
2 PRINCIPLES
2.01 The following underlying principles inform this policy:
(a) The Municipality of Chester recognizes that the landfill requires reliable equipment
to support safe, effective, and efficient landfill operations.
(b) The Municipality of Chester recognizes that landfill equipment costs represent a
significant percentage of the expenditure at the landfill and that the life cycle costs
must be considered in this policy.
(c) The Municipality of Chester recognizes that the use of an equipment replacement
reserve should be employed to achieve lower costs and predictable tip fees by
reducing or eliminating borrowing costs, and by creating a cost structure that
reduces or eliminates peaks and troughs in the landfill tip fee.
(d) The Municipality of the District of Chester recognizes that management of this
policy exists in a dynamic environment and marketplace and that planning
documents will be amended and approved by the Council annually or as required
from time to time.
3 POLICY
(a) The Municipality will establish and maintain long range planning documents.
(b) Planning documents will have a planning horizon of at least ten years.
(c) The Municipality will develop and follow preventative maintenance practices.
4 PROCEDURES
4.01 Responsibility
(a) The Landfill Director has overall responsibility for the development, amendment,
and maintenance of planning documents.
(b) The Finance Director will review and approve the planning documents to ensure
actual and estimated costs and projections accurate and reasonable; and provide
Notice of Intention to Adopt — Council — May 26, 2022 (2022-228)
First Notice — Council — Council — May 26, 2022 (2022-228)
Second Notice — Council — June 23, 2022 (2022-261)
Effective Date - June 23, 2022
Policy P-107 - Landfill Equipment Replacement Policy (continued) Page 13
advice to the CAO with respect to the policy.
4.02 Maintenance:
(a) Preventative maintenance practices will be followed to extend the life of equipment
and to reduce the potential for unanticipated equipment failure or repairs.
(b) Maintenance schedules will be developed & followed for each piece of
equipment.
4.03 Replacement:
(a) Replacement schedules will be based primarily on age of equipment, usage hours
or kilometers, and funding availability.
(b) Replacement schedules may also consider a number of other factors including
workplace safety, cost of maintenance, trade in value, repair potential including
availability and cost of replacement parts, and market conditions.
(c) Replacement of landfill vehicles and equipment will also consider viable
alternative hybrid or electric options to reduce greenhouse gas emissions.
4.04 Financing
(a) Maintenance: The landfill budget will include an amount for preventative and
regular maintenance of landfill equipment.
(b) Equipment Replacement Reserves: The annual landfill budget will include a
contribution to an equipment replacement reserve consistent with long range
planning documents.
(c) Capital from Revenue: In addition to planned contributions to reserves the landfill
budget may include capital from revenue as a source of funds for equipment
acquisition.
(d) Borrowing: Long term financing may also be used to finance equipment
acquisition based on a number of factors including maintenance of tip fee stability
and borrowing terms including advantageous interest rates.
4.05 Procurement: The Municipality will follow its Procurement Policy P-04 when acquiring
equipment pursuant to this policy.
5 DEFINITIONS
5.01 "CAO" means the Chief Administrative Officer of the Municipality of the District of
Chester.
5.02 "Council" means the elected officials that make up the Council of the Municipality of
the District of Chester.
5.03 "Finance Director" means the employee reporting to the CAO that is responsible for
Notice of Intention to Adopt — Council — May 26, 2022 (2022-228)
First Notice — Council — Council — May 26, 2022 (2022-228)
Second Notice — Council — June 23, 2022 (2022-261)
Effective Date - June 23, 2022
Policy P-107 - Landfill Equipment Replacement Policy (continued) Page 14
overall management and development of operating budgets, capital budgets, and
financial statements for the Municipality.
5.04 "Landfill Director" means the employee reporting to the CAO that is responsible for the
overall management and operation of the landfill.
5.05 "Equipment" means motor vehicles, wheeled or tracked machinery, including
compactors, excavators, bulldozers, backhoes, skid steers, loaders, dump trucks, pick
up trucks, and other similar equipment.
5.06 "Municipality" means the Municipality of the District of Chester.
5.07 "Planning Document" means the spreadsheet and/or other documents that forms the
basis for long range equipment maintenance and replacement.
Notice of Intention to Adopt — Council — May 26, 2022 (2022-228)
First Notice — Council — Council — May 26, 2022 (2022-228)
Second Notice — Council — June 23, 2022 (2022-261)
Effective Date - June 23, 2022
Policy P-107 - Landfill Equipment Replacement Policy (continued) Page 15
Annotation for Official. Policy
To establish a framework and guide for the
Reason for Adoption
maintenance, repair, and replacement of landfill
equipment.
Notice of Intention to Adopt
May 26, 2022 (2022-228)
Date of First Notice at Council
May 26, 2022 (2022-228)
Date of Second Notice at Council
June 23, 2022 (2022-261)
Effective Date
June 23, 2022
1 certify that this Policy was adopted by Council as indicated above.
June 24, 2022
.•Pamela-V.'N(yra-,�'64unicipaL Clerk
Date
Notice of Intention to Adopt — Council — May 26, 2022 (2022-228)
First Notice — Council — Council — May 26, 2022 (2022-228)
Second Notice — Council — June 23, 2022 (2022-261)
Effective Date - June 23, 2022