Report titled T ransit Electrification Audit dated September 17, 2024 be received.

7:22and I'll pass that over to the city's internal auditor,

7:25Robert Jelacic, to present the transit electrification audit.

7:35Thank you, Councillor Richardson.

7:38Good afternoon.

7:39I want to give you a brief overview

7:41of the results of this audit.

7:43The city is committed to reducing community carbon emissions

7:4663% by 2030.

7:49Guelph's transit fleet electrification

7:50is part of the 100RE strategy to use 100% renewable energy

7:55by 2050.

7:57The plan aligns with global climate goals

7:59and offers operational benefits like potential lower

8:01maintenance costs and reduced pollution levels achieved

8:05through the use of electric vehicles.

8:08The objectives of the review are to assess the extent of due regard

8:12for economy, efficiency, and effectiveness

8:14as it relates to electrification of the bus fleet

8:18and identify improvement opportunities.

8:21The audit reviewed the technology and performance

8:24of the vehicles and determined if the infrastructure has

8:27been adequately assessed, including understanding

8:29the performance of the buses compared to the vendor-agreed

8:32contractual performance standards.

8:39Assessed industry capabilities of bus electrification goals,

8:42including the capability of suppliers

8:44to deliver buses over the short term.

8:48Reviewed if city facilities will be ready in time

8:50for arrival of the buses with adequate capacity of charging

8:54infrastructure to support the electrified fleet,

8:57the availability and reliability of supply chains

8:59for charging infrastructure components

9:01were also considered factoring in any potential disruptions

9:04or delays.

9:06Evaluated financial considerations

9:07to fund the program on a long-term, sustainable basis.

9:12Reviewed if the logistics and operations of the program

9:15were evaluated and employed appropriately

9:16to meet the needs of the fleet and service requirements

9:20without interruption to current transit service delivery.

9:24Determinative program governance is well-defined

9:26so that the key deliverables can be achieved

9:28with acceptable levels of quality following best practices.

9:32Some key positive findings to highlight from the review

9:34include the Guelph Transit and Fleet Services infrastructure

9:37project has delivered optimal benefits relative to its costs

9:41to date.

9:42Budgetary controls, procurement processes,

9:45and performance metrics were scrutinized

9:47and no areas of potential overspending, inefficiencies,

9:50or underperformance were identified.

9:53The comprehensive analysis provided actionable insights

9:55to enhance future project management practices relating

9:59to this project, ensuring maximum return on investment

10:02and sustainable value creation for stakeholders,

10:05as well as ensuring cost control and avoidance

10:07of future cost escalation.

10:10By investing in the electrification of transit

10:12fleet and infrastructure, the city

10:14has maximized the economic benefit of ICIP, Infrastructure

10:18Canada Investment Program funding

10:20by strategically aligning the community investments

10:23with long-term community and economic goals.

10:26The city has prioritized the Transit Electrification Project

10:30that also enhances infrastructure resilience,

10:32improves transportation efficiency,

10:35and supports sustainable development,

10:37ultimately driving broader economic growth

10:39and community well-being.

10:41The new Guelph Transit and Fleet Services facility

10:44at the Watson-Stone site will employ sustainable design

10:49elements and strive to meet the Canadian Green Building

10:52Council, CAGBC, Zero Carbon Building Design Standard.

10:57The operations facility's long-term plan directly

10:59aligns with the strategic plan, enabling progress

11:02on strategic initiatives related to sustainability,

11:05community needs, transportation system efficiency,

11:08and overall improvement of city operations.

11:11The work performed relating to Guelph Transit and Fleet

11:14Services infrastructure has satisfied the value for money

11:16criteria of effectiveness and efficiency.

11:19Elements through its allocation of resources,

11:22timely completion of milestones, and outcomes

11:24achieved today.

11:26By adhering to a well-structured approach,

11:28the program achieved results that align

11:30with the expected deliverables.

11:33Best possible bus prices have been achieved

11:35through robust negotiation and program procurement processes

11:39and has ensured that both immediate financial benefits

11:42and long-term strategic goals are met,

11:45leading to cost efficiency.

11:47Potential value for money optimizations

11:49paths have been identified in relation

11:52to the purchase and use of electric buses

11:54and should be considered by management and council.

11:57These include use of smaller lower cost per unit electric

12:00buses for deployment by transit on lower ride or demand routes,

12:05extending the lifecycle of existing diesel buses

12:07before replacing these with an electric bus

12:10to slow the pace of electrification

12:12during current, unsettled electric bus market conditions.

12:17From an efficiency perspective, begin

12:19using telematics to manage the electric fleet.

12:21Telematics plays a crucial role in the efficient, safe,

12:24and cost-effective operation of transit fleets

12:27and in contributing to effectiveness goals.

12:30Its absence can lead to operational inefficiencies,

12:32higher costs, and reduced service quality.

12:35Data-driven decision-making is crucial for optimizing

12:38operations and improving service quality,

12:42as it will allow Gulf Transit to base their decisions

12:46and actions on factual insights rather than on assumptions

12:49and guesswork.

12:51The addition of an electrification specialist

12:53as a subject matter expert has been identified

12:55as a key recommendation.

12:57There are immediate risks associated

12:59with not having such a role in place

13:01within the organization.

13:02Risks include lack of coordination between departments,

13:06dealing with challenges to overcome

13:08with this new quickly changing technology,

13:11inadequate planning, potential compliance issues,

13:14including not maximizing government funding opportunities,

13:17poor stakeholder engagement, and insufficient staff training.

13:21The Gulf Transit and Operations Fleet Services Facility

13:24Steering Committee should decide upon the scope

13:26and responsibilities of the role and to decide

13:29whether these requirements would be fulfilled

13:31by one or multiple roles which are existing within the

13:35organization's current budget allotment.

13:38Thank you.

13:42Thanks very much, Robert.

13:43Any questions for staff?

13:48Seeing none, thank you.

13:49I just want to...

13:50Oh, sorry, did I miss...

13:51Everybody out there is good.

13:52You have a question, Councillor Allen?

13:55No, I was just going to move the motion.

13:58Okay, well, I was just going to thank Mr. Jelacic

14:01and let him know that, you know,

14:03do value, see the value in these audits?

14:05And especially as you said, so that we're not relying on...

14:08We're not making our decisions on assumptions

14:10and that we're making informed sound decisions

14:12based on good data.

14:13So thank you for that.

14:15So yes.

14:17Question, Councillor Oroch?

14:19Thank you, Chair Richardson,

14:20through you to Mr. Jelacic.

14:22This was our first year with value for money audits

14:24and I'm just wondering if you found those to be useful

14:28and a good new contribution

14:30to the city's fiscal responsibility.

14:33Yep, through you, Chair Richardson, to Councillor Oroch.

14:36Yeah, absolutely.

14:37I mean, this is the first time running through these audits

14:39as an on-team and, you know,

14:41there were certainly challenges in them.

14:42They are focusing a bit differently

14:45than our traditional risk-based audits,

14:47but still build on that framework

14:49and that sort of baseline that we normally have.

14:52I feel that, and again, the value is really measured

14:55in the value to the organization.

14:57So hopefully management as well as council

14:59will receive these reports and get some important feedback

15:04and also help to drive some of the decisions

15:07that you're gonna have to make,

15:08especially around the budget time.

15:10Appreciate that. Thank you.

15:12You're very welcome.

15:15Any further questions?

15:17And I have a move and during a seconder

15:19to receive the report.

15:20Councillor Allt and Councillor Caton, thank you.

15:26I'm calling the vote on this motion.

15:28All those against?

15:32Seeing none, the motion is carried.

15:35And I'll now pass the over to Councillor Kerron

15:37for the corporate services portion of the meeting.