Staff Report #5
May 9, 2025
To All Commissioners
Re: Financial Update – Capital Budget Programs – March 31, 2025
Recommendation
The Commission:
- APPROVE the contract award with Scheidt & Bachmann GmbH to design, build and install replacement onboard validators (smart card readers) on the conventional bus fleet for $1,851,609; and
- NOTE and FILE the remainder of the report.
Background
Summarized in the table below is the 2025 Capital Program Summary for the three-month period ending March 31, 2025.
Summary of 2025 Capital Budget Program Activity Three Months Ending March 31, 2025
| Description | Actual | Budget | Amount Under Budget (Over Budget) | |
| Program | ||||
| Bus replacement (2025) | $ – | $ 16,399,700 | $ 16,399,700 | |
| Bus replacement (2024) | 26,263 | 15,393,200 | 15,366,937 | |
| Facility upgrades | 97,296 | 500,000 | 402,704 | |
| Fare processing equipment | – | 2,495,000 | 2,495,000 | |
| Information systems & hardware | 65,445 | 800,000 | 734,555 | |
| Shop & garage equipment | 33,231 | 235,000 | 201,769 | |
| Service fleet replacement | 53,732 | 65,000 | 11,268 | |
| Stop upgrades | 11,958 | 96,000 | 84,042 | |
| Fleet radio replacement | – | 625,000 | 625,000 | |
| Highbury facility rebuild | – | 5,000,000 | 5,000,000 | |
| Zero emission bus pilot | – | 25,960,000 | 25,960,000 | |
| Total | $ 287,924 | $ 67,568,900 | $ 67,280,976 | |
| Funding | ||||
| Provincial Gas Tax | $ – | $ 4,497,600 | 4,497,600 | |
| Capital Program Reserve | 164,365 | 1,198,000 | 1,031,635 | |
| City of London | 123,559 | 38,230,300 | 38,106,741 | |
| City – Federal Gas Tax | – | 7,000,000 | 7,000,000 | |
| ICIP – Provincial | – | 1,665,000 | 1,665,000 | |
| ICIP – Federal | – | 2,000,000 | 2,000,000 | |
| Senior Government | – | 12,980,000 | 12,980,000 | |
| Total | $ 24,294,898 | $ 67,568,900 | $ 67,280,976 | |
The following programs are underway through the three months of the year, with narrative focusing on the year-to-date progress.
Bus replacement (2024 & 2025) – Nearly $1 million of ancillary equipment for both programs was received in 2024. The first bus of the order arrived in April and is being outfitted for service. The remaining 33 buses are expected to begin arriving in June with the final delivery expected in the mid fall.
Facility upgrades – The facility upgrade program is underway with costs incurred to date pertaining to additional work on the bus fueling and wash lane at the Wonderland facility, along with other minor repairs and maintenance projects.
Fare processing equipment – During recent maintenance contract extension discussions with Scheidt & Bachmann (SnB) regarding the ongoing support and maintenance for smart card hardware and software, it was identified that the current OBV’s (on board validators) were nearing end of life from a maintenance perspective. As a result, any equipment maintenance would not be supported beyond April 30, 2025 nor would the current models be available for purchase / replacement. As such, the maintenance contract for the OBV portion was only extended through April 30, 2025, with SnB indicating that a life-cycle renewal program would be required in the very near term to migrate to the upgraded models. After further discussions with the vendor, it was determined that a project managed approach to upgrade all units at one time was the best option in order to mitigate the risks of maintaining two different units from both a system and ongoing maintenance perspective. The following table summarizes the one-time supply pricing tor the upgraded OBV’s as presented by SnB:
| Description | QTY | Unit Price (CDN) | Total $ (CDN) |
| OV|41 and mounting kits | 300 | $ 3,450.00 | $ 1,035,000.00 |
| OV|41 and mounting kits (spares) | 10 | 3,450.00 | 34,500.00 |
| Installation commissioning | 251,726.19 | 251,726.19 | |
| Development and testing | 307,334.34 | 307,334,34 | |
| Project management | 223,049.28 | 223,049.29 | |
| Total | $ 1,851,609.82 |
As set out in the table on the previous page, this life-cycle maintenance project has a budget allocation of $2.495 million. Once approval is provided to the vendor, SnB will establish a project team and create a schedule for the project to be reviewed and agreed upon by administration. Once agreed, the project will begin with a series of discussions, including initial project kick-off to review goals, scope, schedule and obligations for both parties. SnB has indicated that a project schedule will be provided to LTC approximately 60 days after project approval. Ongoing updates regarding the project will be included in this report on a monthly basis.
Information systems & hardware – Expenditures incurred to date include the networking equipment, Transit Master system upgrades as well as payments for the Specialized scheduling system’s passenger portal module.
Shop and garage equipment – Expenditures incurred to date relate to the ongoing monthly purchase of shop tools and miscellaneous equipment within Fleet & Facilities.
Service fleet replacement – Expenditures incurred to date relate to the purchase of a new Inspector van which has been outfitted for service.
Stop upgrades – Expenditures incurred to date pertain to the purchase of replacement glass for shelters.
Administration will continue to monitor actual to budget performance and report to the Commission on a monthly basis.
Recommended by:
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager