Toronto's Transit Expansion Program - Update and Next Steps

$0.660 billion as previously approved by City Council in October 2013 (Item 2013.CC39.5) for the Line 2 East Extension project as described in Attachment 2 to the report (April 3, 2019) from the City Manager; b. $0.585 billion as previously approved by City Council in April 2018 (Item 2018.EX33.1) for the SmartTrack Stations Program; c. $3.151 billion for the Relief Line South as described in the October 2018 Environmental Project Report as approved by the Minister of Environment, Conservation and Parks; and d. $0.500 billion for the Bloor-Yonge Capacity Improvement project as described in Attachment 1 to the report (April 3, 2019) from the City Manager. 2. City Council direct the City Manager to advise the Government of Canada that cost-matching requirements of the Province of Ontario and the City of Toronto under the Investing in Canada Infrastructure Program Public Transit Infrastructure Fund Phase 2 program will be determined through ongoing discussions as part of the Toronto-Ontario Transit Responsibilities Realignment Review. 3. City Council authorize the Mayor and the City Manager to negotiate and enter into agreements and amendments as may be required with the Province of Ontario and the Government of Canada for the Investing in Canada Infrastructure Program Public Transit Infrastructure Fund Phase 2, in accordance with City Council's decision and upon such terms satisfactory to them in consultation with the City Solicitor. 4. City Council direct the City Manager to advise the Province of Ontario and the Government of Canada that the City of Toronto will consider endorsing the following Provincial priorities under the City of Toronto's allocation of $4.897 billion in federal funding under the Investing in Canada Infrastructure Program Public Transit Infrastructure Fund Phase 2, subject to Part 5 below and the confirmation that the provincial transit plans will not result in an unreasonable delay to the implementation of Toronto's approved Transit Plan: the Downtown Relief Line; Line 2 One Stop Extension; 6 Smart Track stations; as well as the Eglinton and Waterfront Light Rapid Transit and the City Manager provide a status update to City Council for its consideration at its June 18 and 19, 2019 meeting on: a. $0.660 billion for the Province's proposed three-stop Line 2 East Extension project instead of the one-stop Line 2 East Extension project; and b. $3.151 billion for the Province's proposed 'Ontario Line' as described in the 2019 Ontario Budget, instead of the Relief Line South. Engaging with the Province 5. City Council authorize the City Manager, in consultation with the Chief Executive Officer, Toronto Transit Commission, to engage the Province of Ontario in order to: a. undertake an assessment of the Province's proposed changes to Toronto's transit expansion program described in the 2019 Ontario Budget, and its alignment with the City of Toronto's and Toronto Transit Commission's strategic objectives and priorities, including an assessment of cost, schedule, operational and network impacts, and commercial and technical merits of the proposed changes; b. negotiate principles with respect to cost-sharing, roles and responsibilities, governance, and funding for transit network expansion including but not limited to capital, operating, maintenance and lifecycle maintenance of the new expansion lines, funding requirements for the state of good repair of the existing network, and reimbursement for any sunk costs associated with a change in transit expansion plans; and c. report back to City Council with an update as soon as practical on the proposed upload of subway extensions and new lines under Ontario's new transit proposal outlined in the 2019 Ontario Budget. 6. City Council direct the City Manager, in the City Manager's continuing discussions with the Province on the realignment of transit responsibilities, to emphasize the following issues: a. the Toronto Transit Commission's state of good repair backlog for the current subway system, for which Provincial and Federal government partnership is required urgently in order to address the needs of the system, including the purchase of new subway trains, buses, streetcars, as well as station improvements to address critical safety and accessibility issues; b. station locations and the associated development that will occur at those sites, with regard to established City Planning guidelines such as density, and Council policy, such as inclusion of affordable housing, at those locations; c. the necessity of consultation with local communities, outlined in the Terms of Reference, on the proposed plans announce by the Province; and d. to ensure that discussions regarding potential City contributions to expansion include strict consideration of: 1. critical components of the City's network transit plan, such as the Eglinton East Light Rail Transit and the Waterfront Transit Network, that are not identified in the Province's proposed expansion plans and the need for City contributions to the expansion of the Eglinton East Light Rail Transit and the Waterfront Transit Network, should Provincial funding not be forthcoming; 2. sunk costs associated with planning and design work for transit projects currently underway and to ensure that discussions regarding potential City contributions to expansion include strict consideration of these costs, either to ensure the City is compensated for such costs, or to ensure that planning and design work already completed is utilized for expansion projects proposed by the Province; and 3. the Province's decision to clawback $1.1 billion over ten years of the City's anticipated allocation of increased gas tax revenue, such revenue that would have been used for urgent state of good repair work. 7. City Council request the Province of Ontario to reinstate the promised Provincial Gas Tax increase to fund the Toronto Transit Commission conventional State of Good Repair capital program and other urgent capital priorities or to provide the equivalent year-by-year contribution to the City of Toronto through an alternate funding source, totalling $1.1 billion over 10 years. 8. City Council direct the City Manager and appropriate staff, in consultation with the Province of Ontario and the Chief Executive Officer, Toronto Transit Commission, to develop phasing options to ensure the priority segments of the Relief Line are delivered by the earliest possible in-service date. Line 2 East Extension Project 9. City Council approve $3.887 billion, which includes $3.796 billion for the base project scope, $0.071 billion for scope enhancements and $0.020 billion for a management reserve, for the one-stop Line 2 East Extension project as described in Attachment 2 to the report (April 3, 2019) from the City Manager, and City Council request the Chief Executive Officer, Toronto Transit Commission to proceed with procurement and construction of the project, subject to: a. the Province of Ontario providing written support for the Line 2 East Extension Project as outlined in Attachment 2 to the report (April 3, 2019) from the City Manager and confirmation of the Province of Ontario's previous funding commitment by May 15, 2019; and b. the Mayor and the City Manager entering into contribution agreements for the receipt of federal and provincial funding by November 30, 2019, on terms and conditions satisfactory to them in consultation with the City Solicitor. 10. Subject to the fulfillment of the conditions set out in Part 9 above, City Council: a. amend the Council-Approved 2019-2028 Capital Budget and Plan for the Line 2 East Extension project to commit total project costs of $3.705 billion with cash flows of: $0.117 billion in 2019, $0.241 billion in 2020, $0.280 billion in 2021, $0.588 billion in 2022, $0.578 billion in 2023, $0.694 billion in 2024, $0.610 billion in 2025, $0.200 billion in 2026, $0.174 billion in 2027 and $0.223 billion in 2028; and b. approve the project to be funded from $0.660 billion Investing in Canada Infrastructure Program Public Transit Infrastructure Fund Phase 2, $1.990 billion in provincial funding, $0.258 billion in recoverable debt from XR2125 Development Charge Reserve Fund SSE Transit and $0.797 billion in recoverable debt from XR1725 Scarborough Transit Reserve Fund. 11. City Council authorize: a. the Director, Real Estate Services to enter into and execute Minutes of Settlement ("the Agreement") with the owners of 300 Borough Drive, 530 Progress Avenue and 580 Progress Avenue and the Toronto Transit Commission, substantially in accordance with the terms and conditions outlined in Confidential Attachment 1 to the report (March 13, 2019) from the Director, Real Estate Services, and on such other or amended terms and conditions as may be acceptable to the Director, Real Estate Services and in a form satisfactory to the City Solicitor; b. the Director, Real Estate Services to execute the Agreement and any ancillary agreements and documents under the Agreement, on behalf of the City; c. the Director, Real Estate Services to administer and manage the Agreement, including the provision of any consents, approvals, amendments, waivers and notices, provided that the Director may, at any time, refer consideration of any such matters (including their content) to City Council for its consideration and direction; and d. the City Solicitor to complete the Agreement on behalf of the City, including paying any necessary expenses, amending the closing and other dates, and amending terms and conditions, on such terms as she considers reasonable. 12. City Council authorize the Director, Real Estate Services to: a. continue negotiations to acquire the Project Requirements, and if unsuccessful, City Council authorize the initiation of expropriation proceedings for the Property Requirements as set out in Appendix A to Attachment 2 to the report (April 3, 2019) from the City Manager and as illustrated on the Property Sketches attached as Appendix B to Attachment 2 (collectively the "Project Requirements") to the report (April 3, 2019) from the City Manager for the purposes of the construction, operation and maintenance of the Line 2 East Extension and all works and ancillary uses; and b. execute, serve and publish Notices of Application for Approval to Expropriate Land for the Project Requirements, to forward to the Chief Inquiry Officer any requests for inquiries received, to attend the hearing to present the City's position and to report the Inquiry Officer's recommendations to City Council for its consideration. 13. City Council request the following, should Parts 9.a. or 9.b. above not be met: a. request the Province of Ontario to provide written confirmation of the station locations and the terminus of the proposed three-stop subway extension referenced in the March 22 and 26, 2019 letters from the Special Advisor to Cabinet - Transit Upload and the Deputy Minister, Ministry of Transportation to the City Manager and Chief Executive Officer, Toronto Transit Commission, included as Attachment 1 and 2 to the supplementary report (March 26, 2019) from the City Manager on Engagement with the Province on Toronto's Transit System - First Quarter 2019 Status Report (Item 2019.EX3.1); and b. direct the City Manager in consultation with the Chief Executive Officer, Toronto Transit Commission and the Chief Transit Expansion Officer, Toronto Transit Commission to report to City Council on an assessment of the cost, schedule, and operational impacts to the Toronto Transit Commission network (e.g. Line 3 Scarborough and bus operations) associated with changing the scope and/or delivery model of the Line 2 East Extension project, and principles to guide future discussions with the Province of Ontario. Waterfront Transit - Queens Quay Link and East Bayfront Light Rail Transit 14. City Council approve the Streetcar Option as the preferred technology for the Union Station-Queens Quay Link as described in Attachment 3 to the report (April 3, 2019) from the City Manager, thereby concluding the initiation and development phase of the project. 15. City Council request the Deputy City Manager, Infrastructure and Development Services, in partnership with the Chief Executive Officer, Toronto Transit Commission and Waterfront Toronto, to commence the preliminary design and engineering phase of the Union Station-Queens Quay Link and the extension of the Light Rail Transit to East Bayfront in 2020, and report back to City Council when a Class 3 cost estimate and Level 3 schedule have been developed. 16. City Council request the Deputy City Manager, Infrastructure and Development Services, in consultation with the Chief Executive Officer, Toronto Transit Commission, and Waterfront Toronto, to consider in conjunction with the preliminary design and engineering phase of the Union Station-Queen's Quay link and East Bayfront extension, a phasing option that would implement a through streetcar service on Queen's Quay to East Bayfront, in advance of the Union Station construction and implementation phase. Eglinton East Light Rail Transit 17. City Council request Metrolinx to work with the City to develop a plan to address the following matters: a. the Eglinton East Light Rail Transit extension of Line 5 (Eglinton Crosstown), with terminus at Malvern Town Centre (Option 3); b. the location and construction timing of the Maintenance and Storage Facility as discussed in Attachment 4 to the report (April 3, 2019) from the City Manager, including a discussion with major institutional stakeholders; and c. commencing the preliminary design and engineering phase of the Eglinton East Light Rail Transit project; and City Council request the Deputy City Manager, Infrastructure and Development Services to report back to City Council with recommended plan, schedule, cost and funding requirements for consideration in the City's 2020 budget process. Eglinton West Light Rail Transit 18. City Council direct the Deputy City Manager, Infrastructure and Development Services to report back to the Executive Committee on next steps for the Eglinton West Light Rail Transit project once Metrolinx and the Greater Toronto Airports Authority have completed the planning and analysis of the full extension from Mount Dennis Station to Pearson International Airport. 19. City Council request the Chief Planner and Executive Director, City Planning and the General Manager, Transportation Services, in partnership with the Ministry of Transportation, to study potential solutions to existing and future traffic congestion on Eglinton Avenue West and other streets in central Etobicoke and report back by the third quarter of 2020. General 20. City Council direct that, if there are any Provincial transit costs passed on to the City of Toronto as a result of the 17.3 billion dollar gap in the Province's transit expansion plans, these costs should be itemized on any future property tax bills as "The Provincial Transit Plan Tax Levy". 21. City Council request the City Manager and the Chief Financial Officer and Treasurer to report back in the fall of 2019, prior to the launch of the 2020 Budget Process, when project cost estimates have achieved higher levels of refinement and a potential decision relating to the subway upload has been made, on funding and financing options for the Relief Line South, Bloor-Yonge Capacity Improvement and the balance of the Transit Expansion prioritized projects including but not limited to: a. the preliminary design and engineering phase of: 1. Waterfront Transit Network - Union Station - Queens Quay Link and the extension of the Light Rail Transit to East Bayfront; 2. the Eglinton East Light Rail Transit; and 3. opportunities to accelerate the preliminary engineering and design of the Eglinton East Light Rail Transit and the Waterfront Transit Network, including but not limited to those that might exist if there are cost savings derived from the negotiations with the Province related to the subway upload, where the City has previously allocated monies to other projects costs that may now be assumed by the Province as part of a realignment of responsibilities; and b. the procurement and construction phase of the Waterfront Transit Network - Exhibition Place (Exhibition Loop to Dufferin Gate Loop). 22. City Council forward this Item to the Toronto Transit Commission Board, the Province of Ontario, Metrolinx, the Greater Toronto Airports Authority, York Region, York Region Rapid Transit Corporation, the City of Mississauga, and Infrastructure Canada for information. 23. City Council direct that Confidential Attachment 1 to the report (March 13, 2019) from the Director, Real Estate Services remain confidential in its entirety as it pertains to a proposed or pending acquisition or disposition of land for municipal or local board purpose and litigation or potential litigation that affects the City or one of its agencies or corporations. Confidential Attachment 1 to the report (March 13, 2019) from the Director, Real Estate Services remains confidential in its entirety in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to a proposed or pending acquisition or disposition of land for municipal or local board purpose and it pertains to litigation or potential litigation that affects the City or one of its agencies or corporations.