ANNUAL REPORT 2008/09 - BC Transit

Capital ExpendituresActual 2008/09 capital expenditures were $70 million.Projected spending forecast for the 2009/10 to 2013/14 fiveyear capital plan will significantly exceed historicalaverage spending.Current year acquisitions are comprised primarily of fleetreplacement and expansion including the followingacquisitions:••Acquisition of 26 Alexander Dennis double-deckbuses as part of the 2008/09 service expansion.••Acquisition of 22 conventional Nova buses as part ofthe 2008/09 service expansion.••Acquisition of eight commuter Nova buses tosupport the new Malahat / Cowichan Valleycommuter service. The buses are the first of theirkind in the BC Transit conventional fleet.••Acquisition of 21 conventional Nova buses as partof the 2009/10 replacement plan. These buses wereused to replace a significant portion of the Whistlerand Sea to Sky commuter fleet.••Acquisition and implementation of 28 Ford Polar IIIhandyDART community buses for service expansion08/09. An additional 22 Ford Polars were acquired aspart of on-going custom fleet replacement plans.Other fleet initiatives in the year include:••Issued a Notice to Proceed authorizing themanufacture and delivery for the hydrogen fuelcell bus demonstration fleet. The buses will bedelivered to BC Transit in 2009 and will be in useduring and after the 2010 Olympic and ParalympicWinter Games in the Resort Municipality of Whistler,British Columbia. The BC Transit demonstration fleetof 20 buses will be the largest fleet of fuel cell busesin the world.••Implementation of a four month trial of a DodgeSprinter handyDART bus for trials in the Victoria fleet.The pilot trial is to be used to gain an understandingof the new vehicle type in service, operationalfeedback from operators and fuel usage data. Allinformation to be collated and aid the long termstrategic fleet plan for the custom division ofthe business.••Successful negotiation of a 12 month trial of NorthAmerica’s first double-deck bybrid bus with busmanufacturer, Alexander Dennis. The bus will beentered into full revenue service. All information tobe collated and aid the long term strategic fleet plan.In prior years, spending was largely restricted to vehiclereplacements. With the expansion required to meet thegoals of the Provincial Transit Plan, expansion fleet, facilitiesexpansion and system replacement projects are included inthe long term capital plan.As part of the planning and execution of the largest capitaland service expansion in BC Transit’s history, a capital andfixed asset management department was formed providingoversight over all capital programs. This new departmenthas been instrumental in the planning of capital projectsproviding improved budgeting, cost monitoring, internalcontrol and reporting capability over BC Transit’s capitalprogram and will be instrumental in ensuring the expandedcapital program adheres to budget, schedule and scope.Working Capital ChangesCash and cash equivalents increased year over year by $1.9million due primarily to working capital timing of receiptsand payments. Accounts receivable decreased year overyear by $2.9 million due to the collection of federal capitalgrants of $6.7 million offset by an increase in receivablesfrom municipalities, trade and other of $3.8 million which isdue primarily to the corresponding increase in operations.Accounts payable and accrued liabilities are up year over yearby $1.8 million or 10 per cent due the increase in operationsyear over year. Changes in accounting policy, as discussedbelow under Significant Accounting Changes, resulted29BC TRANSIT 2008/09 ANNUAL REPORT