TAMRMS#: B06
8.1
REQUEST FOR DECISION
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TRAN-001 Transit Bus Lifecycle Replace 2027 Funding
Presented by: Tim Saunders, Director, Public Operations
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RECOMMENDED MOTION(S)
recommendation
That the Municipal Repair Maintain Replace (RMR) Capital Charter Tran-001 Transit Bus Lifecycle Replacement be approved for $13,379,000 in 2027, and $12,402,000 in 2028, to be funded by the Transit Lifecycle Reserve with goods and/or services not to be received until after January 1, 2027 and January 1, 2028 for each of the respective fiscal year approvals.
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SUMMARY
To request Council approval for the TRAN-001 Transit Bus Lifecycle Replacement 2027 budget in the amount of $13,379,000. Additionally, to request Council approval for the TRAN-001 Transit Bus Lifecycle Replacement 2028 budget in the amount of $12,402,000. This will enable Administration to enter into a procurement agreement to ensure that the buses are received in 2027 and 2028 respectively in alignment with the current lifecycle replacement plan. The two year approval will provide for the opportunity to join a multiple year procurement into single package in efforts to obtain potential economies of scale savings with the bulk procurement.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
N/A
BACKGROUND AND DISCUSSION
The 10 Year RMR Replacement Program for Transit identifies 13 - 40 ft buses and two Handibuses to be replaced in 2027, and two - 40 ft buses and six - 60 ft buses in 2028. Current estimates for procurement timelines in conjunction with manufacturer build time is fourteen months to 2.5 years. Approval of the 2027 and 2028 budgets will allow fleet services to procure a bulk order of transit assets which will ensure buses are received when required, and capitalize on efficiencies from economies of scale. As approval is for the 2027 budget, the buses will not be received until after January 1, 2027. Similarly assets funded by the 2028 budget will not be received until after January 1, 2028.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPACTS OF RECOMMENDATION(S)
Financial:
The project is funded from the Transit Lifecycle Reserve. In addition, Administration continues to pursue other grant opportunities.
Lifecycle reserves are managed by a comprehensive 10-year financial outlook, ensuring that future asset replacement needs are proactively planned and sustainably funded. This strategic approach is dependent on a consistent annual transfer from the Operating Budget which includes the Infrastucture Funding Strategy (1.5%) which is an essential commitment to ensuring the long-term sustainability of the City’s existing infrastructure while minimizing tax volatility.
Compliance & Legal:
None at this time.
Program or Service:
Lifecycle of these units is 18 years. Approval would help procure the buses in a manner that would decrease extensions past the 18 years, reducing downtime, scheduling risks and maintenance costs.
Organizational:
None at this time.
Risks
None at this time.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Initiative aligned with Strategic Plan:
Modernize City's Budget - Multi-year Budgeting
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
N/A.
IMPACTS OF ALTERNATIVES CONSIDERED
ALTERNATIVE 1: Delay approval until 2027 and 2028 RMR budget deliberations.
Financial:
N/A
Compliance & Legal:
N/A
Program or Service:
Potential of not meeting transit service levels, with increased bus downtime for repairs.
Organizational:
Recent RFP completed for 2026 lifecycle plan purchase so there are potential time savings utilizing current data and rates.
The City of St. Albert is in preliminary discussion with the regional partners to participate in bulk procurement opportunities.
Risks
Increasing dependance on 19/20-year-old buses to meet service levels continues to increase the maintenance component. Additional transmission, engine, brake system and suspension overhauls are occurring, with our oldest buses exceeding 1,000,000 kms. The result is maintenance costs exceeding budget year over year. Further extensions past 20 years will negatively affect service level achievements.
From an environmental perspective, the present clean diesel fleet consists of 15 conventional transit buses. The 2026 replacement with 17 clean diesel buses is expected to arrive by the end of 2026. Once the 13 2027 clean diesel replacement transit buses arrive, the Transit fleet will be reduced to only 15 diesel buses with a lower standard of emission control.
The Handibuses are now gasoline and more dependable, but face increase demand and additional kilometers. Timely 2027 replacement will be key to maintain service levels. Present lead time is 2 ½ years following award.
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Report Date: June 17, 2025
Author(s): Tom Kumka
Department: Public Operations
Department Director: Tim Saunders
Managing Director: Dinu Alex
Chief Administrative Officer: William Fletcher