TAMRMS#: B06
8.7
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Transit Bus Lifecycle Replacement Plan - TRANS-001
Notice given by: Councillor Biermanski
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BUDGET POSTPONED MOTION:
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That the Transit Bus Lifecycle Replacement Plan - TRANS-001 is removed from 2023 10-Year Municipal RMR Capital Plan.
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Administration’s Understanding of the Intent of the Motion:
That the funding to support the entirety of the Transit bus replacement plan (TRAN - 001) which includes funding to support transit vehicle service life replacements and engine re-builds be removed from the 2023 10-Year Municipal RMR Capital Plan.
If the intent of the motion is only to not approve funding for the items included in the 2023 budget ask (and not to remove the entire charter from the 10 year plan), the motion should be re-worded as follows:
“That no funding be provided as part of the 2023 budget to support items identified in the Transit bus replacement plan (TRAN-001) and that these items be moved to future years for consideration.”
Operational or Organizational Impacts if Motion is Approved:
The removal of the RMR would eliminate the purchase of equipment and vehicles to replace those that have reached end of service life or require engine re-builds prior to end of service life to continue to meet the service levels for St. Albert Transit. This would apply to the Edmonton Metropolitan Transit Service Commission (EMTSC) as well as a robust asset management program and funding of such would be required to maintain their operations. The impact of removing the RMR would lead to increased operational impacts (contracting, materials and staffing to maintain items past their serviceable life) for the Fleet branch.
Financial Implications of Motions:
If the proposed alternate motion is moved:
1. The removal of the Charter for the 2023 year would lead to extending bus lifecycle to the following year which would then require an additional funding in 2024 to make up for the previous year’s shortfall as well as an increase to the 2023 fleet operational budget to allow for additional costs of maintaining aged buses. As this charter is intended to be funded from a designated reserve, these dollars would just remain in the reserve for future use. There would be no reduction to the tax rate if this motion was approved.
If the original motion is moved:
2. The removal of the Charter indefinitely would lead to the fleet operations budget being unsustainable due to insufficient capacity in the Transit garage and Service Level delivery would be impacted due to downtime of managing service levels with insufficient assets to support the service delivery. This would apply to the EMTSC as well once their business plan and model for asset management under their umbrella is known. As this charter is intended to be funded from a designated reserve, these dollars would just remain in the reserve for future use. Council would need to direct the future use of these reserve funds. There would be no reduction to the tax rate if this motion was approved.
Stakeholder Consultations:
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Background:
This plan supports the replacement and required engine rebuild of all Transit vehicles. The replacement plan is reviewed annually, and life cycle adjustments are made using several different criteria within the City’s policy. Units replaced are evaluated annually based on cost per unit, reliability, technological change and operational enhancement.
Not replacing vehicles in a timely fashion will impact the requirement to meet service levels as established by Council.
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Report Date: June 7, 2022
Author(s): Jay Mason
Committee/Department: Public Operations
Action Chief Administrative Officer: Kerry Hilts