Staff Report #2
June 28, 2023
To All Commissioners
Re: 2024 Bus Expansion Order
Recommendation
That the Commission APPROVE the purchase of ten 40’ expansion buses from New Flyer Industries Canada, ULC at a total cost of $8,010,280, exclusive of applicable taxes.
Background
The Bus Expansion program, covering the period of 2020-2028, was one of the projects submitted and approved for funding under the Investing in Canada Infrastructure Program – Transit Stream. The approved program calls for the purchase of 31 expansion buses over the period noting the timing of purchases is tied to the planned annual service improvements. To date, seven expansion buses have been purchased under this program (two in 2021 and five in 2022).
Historically, expansion bus orders have not been confirmed until such time as the operating budget supporting the service improvements has been approved by Municipal Council. Over the last number of years, the delivery time for buses has been extended quite significantly. While this was less of a challenge through the pandemic period when service improvements were not being implemented, going forward, a lack of buses will be an impediment to implementing approved service changes within the operating budget year. In order to mitigate the impacts of delayed delivery and bus availability for service changes, administration has, to the extent possible, implemented the service improvements that do not require an additional bus (off peak and weekend improvements).
In an effort to ensure bus availability for service expansion in 2024/25, administration is recommending that an order for ten expansion buses be placed now noting the estimated timeline for delivery of these buses is 3rd quarter of 2024. This will provide administration with the flexibility to implement service improvements consistent with service plans and approved budget, and ensure there are no significant delays associated with implementing improvements during peak periods or to new areas of the city.
New Flyer Industries Canada, ULC has confirmed that they will hold the pricing that was confirmed for the 2023 replacement bus order placed in October 2022. The table below sets out the details with respect to the purchase and sources of funding.
2023 Bus Expansion Program
| Description | Units | 2023 Total |
| Bus Expansion | 10 | $ 8,010,280 |
| Funding | ||
| ICIP – Provincial | $ 2,669,880 | |
| ICIP – Federal | 3,204,100 | |
| City of London | 1,281,800 | |
| City of London DC’s | 854,500 | |
| Total | $ 8,010,280 |
Subsequent to Commission approval to proceed with this order, administration will finalize the purchase order with New Flyer Industries Canada, ULC. In addition, the ancillary equipment required to be installed on a new expansion bus (farebox, cameras, automatic passenger counters, automatic vehicle location equipment, air filtration system and smart card reader) will be ordered noting this equipment costs approximately $55,000 per bus and is included in the approved budget.
Recommended by:
Mike Gregor, Director of Finance
Craig Morneau, Director of Fleet & Facilities
Concurred in by:
Kelly S. Paleczny, General Manager