Staff Report #10 – Re: Financial Update – Capital Budget Programs – July 31, 2020

Staff Report #10

August 26, 2020

To All Commissioners

Re: Financial Update – Capital Budget Programs – July 31, 2020


That the report be NOTED and FILED.


Summarized in the table below is the 2020 Capital Program Summary for the seven-month period ending July 31, 2020.

Summary of 2020 Capital Budget Program Activity

Seven Months Ending July 31, 2020

Description  Actual  Budget Amount
Under Budget (Over Budget)
Stop Upgrades $ –  $ 240,700  $ 240,700
Service Fleet 74,547 130,000 55,453
Shop Equipment 145,351 236,200 90,849
Software and Hardware 33,249 700,000 666,751
Facility Upgrades 69,800 560,600 490,800
Bus Replacement (16) 92,448 9,488,000 9,395,552
Bus Expansion
Bus Stop Amenities 550,000 550,000
Operator Barriers 696,970 1,468,900 771,930
Fleet Radio Replacement 625,000 625,000
TMP 2030 – BRT Strategy 1,500,000 1,500,000
Fare Processing Equipment 1,862,100 1,862,100
Smart Card Program 29,846 325,000 295,154
Total $ 1,142,211  $ 17,686,500  $ 16,544,289
Provincial Gas Tax $ 526,816 $ 7,351,300  $ 6,824,484
Capital Program Reserve 453,147 1,296,900 843,753
City of London 162,248 7,135,000 6,972,752
Federal – ICIP 220,000 220,000
Provincial – ICIP 183,300 183,300
Federal Gas Tax 1,500,000 1,500,000
Total $ 1,142,211  $ 17,686,500  $ 16,544,289

The following programs are underway through the first seven months of the year, with narrative focusing on the year-to-date progress.

Service Fleet – The replacement vehicle for the Inspector fleet was purchased and has been fully outfitted and placed into service. A van was purchased for the mobile mechanic function and is currently being outfitted with racking, lighting, etc.

Shop Equipment – Expenditures incurred to-date relate to the ongoing monthly purchase of shop tools and equipment as well as a scrubber and hoist. This budget is utilized throughout the year as equipment and tools are required.

Software and Hardware – Expenditures incurred to date for the purchasing of workstations and networking equipment.

Facility Upgrades – Expenditures incurred to date have been for generator upgrades (both facilities), boiler replacement (Wonderland), an updated sewer connection (Wonderland), repairs to damaged columns (Highbury), and HVAC upgrades in the server room. A few other projects are underway with the remainder expected to be completed by year-end.

Bus Replacements (16) – Expenditures incurred to date are for a portion of the ancillary equipment. The buses commenced line entry in mid-July. Providing there are no additional delays at the New Flyer facility, delivery is set to commence in late September.

Operator Barriers – Installation of the barriers has commenced and at the time of writing, enough permanent and temporary barriers have been installed in order to provide buses for the current service level. The remaining barriers will continue to be installed as they are received. It should also be noted that given the recent announcement of the Safe Restart Program (see Staff Report #1, dated August 26, 2020), it is anticipated that funding for this project can be utilized from this source, rather than from Provincial Gas Tax and the internal Capital Program Reserve fund as previously approved.

Smart Card Program – additional replacement routers purchased.

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