Staff Report #8
September 30, 2020
To All Commissioners
Re: Financial Update – Capital Budget Programs – August 31, 2020
Recommendation
That the report be NOTED and FILED.
Background
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) |
|
| Program | ||||
| 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 | |
| Funding | ||||
| 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