Staff Report #8 – Financial Update – Capital Budget Programs – August 31, 2020

Staff Report #8

September 30, 2020

To All Commissioners

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


That the report be NOTED and FILED.


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

Summary of 2020 Capital Budget Program Activity Eight Months Ending August 31, 2020

Description  Actual  Budget Amount
Under Budget (Over Budget)
Stop Upgrades $ –  $ 440,700  $ 440,700
Service Fleet 74,547 130,000 55,453
Shop Equipment 148,803 236,200 87,397
Software and Hardware 37,974 700,000 662,026
Facility Upgrades 74,828 560,600 485,772
Bus Replacement (16) 114,871 9,488,000 9,373,129
Bus Expansion
Bus Stop Amenities 550,000 550,000
Operator Barriers 1,035,498 1,468,900 433,402
Fleet Radio Replacement 625,000 625,000
TMP 2030 – BRT Strategy 1,500,000 1,500,000
Fare Processing Equipment 1,995,000 1,995,000
Smart Card Program 29,846 325,000 295,154
Total $ 1,516,367  $ 18,019,400  $ 16,503,033
Provincial Gas Tax $ 29,846 $ 5,349,300  $ 5,319,454
Capital Program Reserve 261,324 1,296,900 1,035,576
City of London 189,699 7,135,000 6,945,301
Federal – ICIP 220,000 220,000
Provincial – ICIP 183,300 183,300
Safe Restart Funding 1,035,498 1,468,900 433,402
Federal Gas Tax 2,366,000 2,366,000
Total $ 1,516,367  $ 18,019,400  $ 16,503,033

The following programs are underway through the first eight 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 and inspections. At the time of writing, seven of the sixteen buses have arrived and pending no further delays, the remainder are expected to onsite by mid to late October.

Operator Barriers – Installation of all available permanent barriers have been completed with the second order for the remaining 56 barriers set to arrive in the next two weeks. As these arrive, the temporary barriers will be removed and replaced with the permanent ones. This should be completed by mid to late October. 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. The schedule above has been amended to reflect this change.

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