TAMRMS#: B06
8.5
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2026 TRAN-001 Transit Bus Funding Increase
Presented by: Tom Kumka, Fleet Manager, Public Ops
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RECOMMENDED MOTION(S)
recommendation
That the budget for Municipal Repair Maintain Replace (RMR) Capital Charter TRAN-001 Transit Bus Lifecycle Replacement for 2026 be increased by $963,300 for a total budget of $9,230,300 to be funded from the Transit Lifecycle Reserve with goods and/or services not to be received until after January 1, 2026.
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PURPOSE OF REPORT
To request an increase in funding for budget Municipal Repair Maintain Replace (RMR) Capital Charter TRAN-001 (2026), in order to continue with procurement of nine buses in 2026 that are part of lifecycle replacement plan.
BACKGROUND AND DISCUSSION
Municipal Repair Maintain Replace (RMR) Capital Charter TRAN-001 Transit Bus Lifecycle Replacement was approved in the amount of $9,250,700 in 2025 and $8,267,000 in 2026 for the lifecycle replacement of 17 buses, eight and nine in each year, respectively. This was carried by Council on August 29, 2023 via AR-23-417.
The funding provided is intended to procure a total of 19 buses, two for growth and purchase in 2024, eight for lifecycle replacement in 2025, and nine for lifecycle replacement in 2026. The multi-year approval permits procurement of long delivery items for the year that they are budgeted and seeks to gain efficiencies through ordering larger quantities of the assets.
The procurement activities began in December of 2023. In consideration of pricing volatility and to balance risk allocation of cost inflations, firm pricing was requested for budget years 2024 and 2025 only. This was intended to prevent inflated risk pricing for the 2026 buses. These buses would not be immediately entering the suppliers' production and would not have "locked-in" pricing that may be subject to escalation between City procurement and supplier commencing production.
The approval of AR-24-207 on May 7 allowed for the negotiati...
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