Staff Report #8
June 27, 2018
To All Commissioners
Re: Financial Update – Capital Budget Programs – May 31, 2018
Recommendation
That the report be NOTED and FILED.
Background
Summarized in the table below is the 2018 Capital Program Summary for the five month period ending May 31, 2018.
Summary of 2018 Capital Budget Program Activity
Five Months Ending May 31, 2018
| Amount | ||||
| Under Budget | ||||
| Description | Actual | Budget | (Over Budget) | |
| Program | ||||
| Stop Upgrades | $ 21,278 | $ 110,000 | $ 88,722 | |
| Service Fleet | 33,971 | 40,000 | 6,029 | |
| Shop Equipment | 32,043 | 200,000 | 167,957 | |
| Software and Hardware | 109,216 | 600,000 | 490,784 | |
| Facility Upgrades | 76,227 | 300,000 | 223,773 | |
| Bus Replacement (8) | – | 4,560,800 | 4,560,800 | |
| Bus Expansion (4) | 202,305 | 2,378,400 | 2,176,095 | |
| Fleet Radio Replacement | – | 625,000 | 625,000 | |
| TMP 2030 – BRT Strategy | – | 1,500,000 | 1,500,000 | |
| Fare Processing Equipment | – | 1,495,000 | 1,495,000 | |
| Smart Card Program | – | 605,000 | 605,000 | |
| Total | $ 475,040 | $ 12,414,200 | $ 11,939,160 | |
| Funding | ||||
| Provincial Gas Tax | $ 63,225 | $ 5,502,200 | $ 5,448,975 | |
| Capital Program Reserve | 143,283 | 627,000 | 483,717 | |
| City of London | 278,532 | 4,785,000 | 4,506,468 | |
| Federal Gas Tax | – | 1,500,000 | 1,500,000 | |
| Total | $ 253,930 | $ 12,414,200 | $ 11,939,160 | |
The following programs are underway through the first five months of the year, with narrative focusing on the YTD progress.
Stop Upgrades
The costs incurred to-date are attributable to the remaining expenditures from the 2017 shelter installs. As outlined in Staff Report #2, dated April 25, 2018, an additional $73,000 was requested and approved to carry out the planned 2018 shelter program (10 shelters). The remaining $89,000 in the budget will enable the purchase and installation of these 10 shelters. Shelters have been ordered and the contract for the required cement pads has been awarded. Work began on cement pads on June 25, 2018 for completion by August 30, 2018; with shelters being installed by late September/early October.
Service Fleet
The costs incurred to-date are attributable to the purchase of a new service van. Outstanding expenditures are related to the lighting kits and ancillary equipment required for the van. See Staff Report #8, dated April 25, 2018.
Shop Equipment
Expenditures incurred to-date relate to the ongoing monthly purchase of shop tools. This budget is utilized throughout the year as equipment and tools are required.
Software and Hardware
The costs incurred to-date are attributable to the replacement of the Specialized scheduling system and other workstation and networking equipment replacements. Work on these projects is scheduled to continue for the remainder of the year.
Facility Upgrades
Expenditures incurred to-date relate to the purchase of high speed doors for the fuel service lanes as well as repairs to the maintenance inspection pit. The remaining projects scheduled for 2018, as discussed in Staff Report #8, dated April 25, 2018 include repairs to curbing and parking lot asphalt, reinforcement of columns in A and B bard, grating to be replaced in B barn and new office construction in Human Resources.
Bus Purchases
The costs incurred to-date are attributable to the early purchase of ancillary equipment required for the 2018 bus expansion and replacement projects. Staff Report #8, dated April 25, 2018 discusses the timing and issues related to these programs.
The remaining programs are scheduled to commence in the remainder of 2018. 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