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HomeMy WebLinkAboutCS 88-05 REPORT TO EXECUTIVE COMMITTEE Report Number: CS 88-05 Date: November 22, 2005 Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Ontario Transit Vehicle Program - 2005 Request for Allocation of Funds Recommendation: o That Report CS 88-05 be received for information and: That Council approve the application for Provincial subsidy funding as directed in the Ontario Transit Vehicle Program (OTVP) guidelines for 2005; That Council approve the (OTVP) application for the eligible expenditures as approved in 2005 APTA Budget and the Director, Corporate Services and Treasurer be authorized to make any changes to the OTVP application or undertake any actions necessary in order to ensure the application process is complete; and, That the appropriate officials of the City of Pickering and the Ajax Pickering Transit Authority be given authority to give effect thereto. Executive Summary: The Ontario Transit Vehicle Program or OTVP is designed to provide up to one-third subsidy funding for: replacement transit vehicles, major refurbishment of ageing municipal transit vehicles and for fleet expansion. The application must be approved by the municipal Council and the Council of the Town of Ajax will be passing a similar Resolution. Financial Implications: In 2002, 2003 and 2004, APTA had applied to the Province for one-third subsidy funding for the purchase of replacement vehicles and for major transit vehicle refurbishments. Report CS 88-05 Date: November 22, 2005 Subject: Ontario Transit Vehicle Program - 2005 Request for Allocation Page 2 of Funds Under the Ontario Transit Vehicle Program, APTA's eligible renewal expenditures are based on the following APTA Board and Council approved 2005 capital budget items: 2005 APTA Capital Budget Submission for OTVP Funding Rep. - 1997 Ford CTV Bus #9006 $110,000 $36,630 $73,370 Rep. - 1995 ELF 125 Bus #9007 110,000 36,630 73,370 Rep. - 1995 Ford CTV Bus #9010 110,000 36,630 73,370 Mid-life Bus Refurb. 1994 Orion V #2012 80,000 26,640 53,360 Mid-life Bus Refurb. 1994 Orion V #2013 80,000 26,640 53,360 Mid-life Bus Refurb. 1994 Orion V #2014 80,000 26,640 53,360 TOTAL Related to 2005 APTA Budget $570,000 $189,810 $380,190 APTA staff have received price quotes for the above work. The price quotes have exceeded the approved budget and APTA's management has decided to defer mid-life bus refurbishment for bus 2012 in order to stay within the requirements of the approved budget and to provide flexibility for any additional work if it is required for bus refurbishments units 2013 and 2014. APTA's mechanical staff have determined that bus 2012 is the least in need of structural and mechanical refurbishment of the three buses that have been approved in the budget. In 2006, APTA's management plans to re-budget for refurbishment work related to bus 2012. Last year, APTA applied for one-third Provincial funding for several buses. Ministry of Transportation Ontario or (MTO) staff have informed APTA staff that due to the fact that these buses were not received until 2005, APTA needs to re-apply for the Provincial subsidy related to these buses. The table below reflects the re-submission. Report CS 88-05 Subject: Ontario Transit Vehicle of Funds Date: November 22, 2005 Program - 2005 Request for Allocation Page 3 Re-Application Related to 2004 APTA Capital Budget order (Delivered in 2005) Re-application for 2004 order for (2) Replacement Vehicles (Bus #2040 & #2039) $378,000 $125,874 $252,126 Re-application for 2004 order for (4) Replacement Vehicles 756,000 251,748 504,252 Total $1,134,000 $377,622 $756,378 Based upon the above two tables, APTA is asking the Province to provide funding in the amount of $567,432 (which consists of 2005 application $189,810 and 2004 of $377,622). Approval of the above Recommendations will provide the necessary authority for APTA to apply for the Ministry of Transportation subsidy funding. (The remaining net capital costs for the projects listed above are included in APTA's Capital Budgets and are funded equally by the Town of Ajax and City of Pickering). Background: In 2004, the Provincial Government announced, in its 2004 budget, a commitment of providing transit funding to municipalities. Through the OTVP, the Province will provide funding of up to one-third of the eligible capital costs incurred by municipalities to replace or refurbish ageing transit vehicles or to purchase new vehicles to expand their transit fleets to increase ridership and reduce gridlock. APTA staff received notification from MTO to apply for the subsidy in late fall of this year. In APTA's situation, both the Town of Ajax and the City of Pickering Councils must pass resolutions supporting APTA's OTVP application. Attachments: Not applicable Report CS 88-05 Date: November 22, 2005 Subject: Ontario Transit Vehicle Program - 2005 Request for Allocation Page 4 of Funds Prepared By: Approved / Endorsed By: Stan Karwowski Manager, Finance & Taxation Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council Tho/mas j. QutS~, Chi~"~dmin~e Officer