Staff Report #7 – 2026 Work Program – Finance – First Quarter Update

Staff Report #7

April 27, 2026

To All Commissioners

Re: 2026 Work Program – Finance – First Quarter Update

Recommendation

That the report be RECEIVED for information.

Background

The following report is provided as an update on significant projects as set out in the 2026 Work Program that were scheduled to commence and/or be completed in the first quarter, with the lead on same being the primary responsibility of the Finance department.

3.2 – Review of Alternative Fare Payment Methods

This initiative is intended to identify options for methods of fare payment in addition to the Smart Card, including consideration of debit/credit tap and app-based payments. As a first step, an industry scan will be undertaken to determine best practices and recommended solutions that have proven to be effective at other transit properties. This scan will include possible options as well as the estimated costs associated with the implementation of each. An RFP to hire a subject matter expert / consultant to complete the review will be undertaken in the second quarter. Final recommendations will be presented to the Commission for consideration and inclusion in a future capital budget. It should be noted that this initiative will be done in tandem with item 10.7 (Assessment of Options for Farebox Replacement), as the final decision will impact the functionality that will be required going forward on fareboxes.

3.5 – Secondary Student Buss Pass Pilot

The commencement of the secondary student bus pass pilot program is set to begin in the Fall of 2026. The approved plan requires LTC to update its smart card system to accept new media utilized for this pilot program. This includes the procurement of smart card stickers that will be issued to participating students as well as ensuring that reporting mechanisms are in place to track the associated ridership. Training materials will also be provided to the Thames Valley District School Board relating to expected behaviour while riding public transit which will be shared with all students participating in the program.

The smart card vendor has scheduled the deployment of this new tariff (fare category) in the second quarter, which will provide adequate time to test the new smart card media and overall reporting capabilities. Sample smart card stickers have been reviewed and administration is currently working with a fare media supplier to procure the most appropriate fare media.

Monthly meetings have been scheduled between LTC, City of London and the Thames Valley District School Board representatives to ensure the project remains on schedule for the fall launch.

10.6 – Asset Management Plan Update

Since 2021, administration has worked with The City of London’s Corporate Asset Management (CAM) team to ensure that the Commission’s Asset Management Plan (AMP) aligns with the City’s requirement for same under O Reg 588/17. Per the regulation, an AMP is required every 5 years, however, the City has chosen to complete one every four years that aligns with the multi-year budget (ie. 2024 & 2028). The CAM team is currently working towards completing the overall City of London AMP for Council approval in March 2027.

To support this timeline, administration began working with the CAM team in the fourth quarter of 2025, in preparation for a draft AMP completion in Q2, based on December 31, 2025 actual results. All information and schedules have been provided to the CAM team who are currently completing the draft updated AMP for presentation to the Commission for approval. The team is currently anticipating a draft to be presented to the Commission for the June meeting, but has noted that approval could also be completed in August without impacting their timelines.

10.12 – Smart Card On-Board Validator Upgrades

As set out in Staff Report #5 dated May 9, 2025, the Commission approved the contract award to SnB to design, build and install replacement On Board Validator’s on the conventional bus fleet. After the award of the contract, an initial project kick-off meeting took place in July with the vendor providing details regarding their project team and governance structure, along with the project plan outlining the necessary phases and timelines. The following table summarizes the plan, current timelines and % of completion for each.

Currently the vendor is working on the software design and development phase and has just completed manufacturing the equipment. A prototyping session was completed on April 17^th with the vendor on site with its contractors to install the OV41’s on a select sample of buses for testing purposes. The purpose of the visit was to create a template and checklist for the full installation and identify any roadblocks that could arise during installation. Administration currently meets with the project team on a bi-weekly basis, but anticipate as the testing ramps up, meetings will increase in frequency.

Recommended by:

Mike Gregor, Director of Finance

Concurred in by:

Kelly S. Paleczny, General Manager