Item - 2013.CC37.17

3RD REVISED MOTION 4

That motion 1 by Mayor Ford be amended by:

1.          adding to the introductory statement in Option B the words:

"contingent on:

a.         new federal funding equal to 50% of the net capital costs 

b.         provincial contribution of $1.8 billion (2010 $);

c.         no other funding outlined in the Metrolinx and City of Toronto Master Agreement being re-allocated to the extension of the Bloor Danforth line from:

                i.      Sheppard LRT;

                ii.     Finch LRT;

                iii.     Eglinton LRT; and

d.         no reallocation of existing City revenues from other services to pay for the subway.",

2.          making the resulting adjustments to the property tax increase in Part 2d,

So that motion 1 now reads as follows:

That City Council adopt Option B contained in the report (July 12, 2013) from the City Manager with the addition of a new Recommendation 3 and the balance of the Recommendations re-numbered accordingly, as follows:

B.              City Council confirm its support for the Scarborough Subway contingent on:

a.         new federal funding equal to 50% of the net capital costs;

b.         provincial contribution of $1.8 billion (2010 $);

c.         no other funding outlined in the Metrolinx and City of Toronto Master Agreement being re-allocated to the extension of the Bloor Danforth line from:

                             i.     Sheppard LRT;

                             ii.    Finch LRT;

                             iii.    Eglinton LRT; and

d.         no reallocation of existing City revenues from other services to pay for the subway

and

1.         Authorize the City Manager to amend the Master Agreement, and, if necessary, enter into a separate agreement with Metrolinx and the Province, to:

a.         remove the Scarborough LRT from the description of the program to be constructed by Metrolinx under the Master Agreement (the "Program");

b.         amend the overall Program budget by reducing it by $1.8 Billion representing the anticipated cost of constructing the Scarborough LRT (the "LRT Amount");

c.         ensure that the Master Agreement continues to apply to the interchange between the Scarborough Subway and the Sheppard East LRT at Sheppard East Station, and the Eglinton Crosstown LRT at Kennedy Station;

d.         redirect to the City for the purpose of the construction of the Scarborough Subway, the following amounts:

i.          the LRT Amount (defined above as $1.8 Billion), indexed by an appropriate cost escalation factor from 2010 to the date of transfer to the City (the "Indexed LRT Amount"), payable to the City in a manner to be agreed upon by the parties having regard to ensuring that the City's financing charges or contract payments related to the Indexed LRT Amount are fully offset over the life of the City's financing, or contract payments in respect of the Indexed LRT Amount; and

ii.         the estimated value, as agreed to by the parties, of any costs which would have been borne by Metrolinx under the Master Agreement in respect of  the Scarborough LRT  related to operations, capital maintenance, and such other costs as may be negotiated between the parties; and

e.         make any further amendments to the Master Agreement as may be necessary to reflect the removal of the Scarborough LRT from the Program.

all on such terms and conditions as are satisfactory to the City Manager and TTC Chief Executive Officer, in consultation with any other relevant City officials, and in a form acceptable to the City Solicitor.

2.         Commit to funding the City's share of the cost of construction of a Scarborough Subway by:

a.         Directing the Deputy City Manager and Chief Financial Officer to prepare a Development Charge By-law to include the City's share of capital costs in respect of the Scarborough Subway project for  Council consideration in 2014

b.         Requesting the Province of Ontario to make appropriate amendments to the Development Charges Act for the purposes of the Scarborough Subway Project similar to those made by the Province for the Toronto York Spadina Subway Extension project

c.         Requesting the Federal Government to contribute Toronto's fair share of federal funding under the P3 Canada Fund, the Building Canada Fund and all other available sources of federal funding for the construction of the Scarborough Subway.

d.         Committing to a property tax increase over three years, dedicated to funding a Scarborough Subway, in an amount of 1.1%, on the residential property class, and 1/3 of such a rate increase on the non-residential property classes (in accordance with current City policy), starting with a minimum tax rate increase in 2014 of 0.5% on the residential property class, together with the corresponding 1/3 rate increase on the non-residential property classes, with the balance of the residential and non-residential two year rate increase to be phased-in in year 2015.

3.         Notwithstanding Recommendation 2.d., City Council request the Deputy City Manager and Chief Financial Officer to investigate alternative sources of funding for consideration and report to the Budget Committee, such report to include options to reduce or eliminate the recommended tax increase in 2014 and further reduce the tax increase to .25% for the remaining phase in years.

4.         Direct the appropriate City officials to seek the necessary approval under the Environmental Assessment Act be sought using the Transit Project Approval Process as set out in Ontario Regulation 231/08, as amended.

5.         Authorize the appropriate City officials to take all actions necessary to give effect to this recommendation.

That motion 1 by Mayor Ford be amended by adding to the introductory statement in Option B the words "only as it pertains to the conversion of the Scarborough LRT to a Scarborough Subway" so that motion 1 now reads as follows:

B.        City Council confirm its support for the Scarborough Subway and:

1.         Authorize the City Manager to amend the Master Agreement only as it pertains to the conversion of the Scarborough LRT to a Scarborough Subway, and, if necessary, enter into a separate agreement with Metrolinx and the Province, to:

a.         remove the Scarborough LRT from the description of the program to be constructed by Metrolinx under the Master Agreement (the "Program");

b.         amend the overall Program budget by reducing it by $1.8 Billion representing the anticipated cost of constructing the Scarborough LRT (the "LRT Amount");

c.         ensure that the Master Agreement continues to apply to the interchange between the Scarborough Subway and the Sheppard East LRT at Sheppard East Station, and the Eglinton Crosstown LRT at Kennedy Station;

d.         redirect to the City for the purpose of the construction of the Scarborough Subway, the following amounts:

i.          the LRT Amount (defined above as $1.8 Billion), indexed by an appropriate cost escalation factor from 2010 to the date of transfer to the City (the "Indexed LRT Amount"), payable to the City in a manner to be agreed upon by the parties having regard to ensuring that the City's financing charges or contract payments related to the Indexed LRT Amount are fully offset over the life of the City's financing, or contract payments in respect of the Indexed LRT Amount; and

ii.         the estimated value, as agreed to by the parties, of any costs which would have been borne by Metrolinx under the Master Agreement in respect of  the Scarborough LRT  related to operations, capital maintenance, and such other costs as may be negotiated between the parties; and

e.         make any further amendments to the Master Agreement as may be necessary to reflect the removal of the Scarborough LRT from the Program.

all on such terms and conditions as are satisfactory to the City Manager and TTC Chief Executive Officer, in consultation with any other relevant City officials, and in a form acceptable to the City Solicitor.

2.         Commit to funding the City's share of the cost of construction of a Scarborough Subway by:

a.         Directing the Deputy City Manager and Chief Financial Officer to prepare a Development Charge By-law to include the City's share of capital costs in respect of the Scarborough Subway project for Council consideration in 2014

b.         Requesting the Province of Ontario to make appropriate amendments to the Development Charges Act for the purposes of the Scarborough Subway Project similar to those made by the Province for the Toronto York Spadina Subway Extension project

c.         Requesting the Federal Government to contribute Toronto's fair share of federal funding under the P3 Canada Fund, the Building Canada Fund and all other available sources of federal funding for the construction of the Scarborough Subway.

d.         Committing to a property tax increase over three years, dedicated to funding a Scarborough Subway, in an amount between 1.1% and  2.4%  (depending upon the amount of funding received through Recommendations 2(2)(a) and (c)), on the residential property class, and 1/3 of such a rate increase on the non-residential property classes (in accordance with current City policy), starting with a minimum tax rate increase in 2014 of 0.5% on the residential property class, together with the corresponding 1/3 rate increase on the non-residential property classes, with the balance of the residential and non-residential three year rate increase to be phased-in in the years 2015 and 2016.

3.         Notwithstanding Recommendation 2.d., City Council request the Deputy City Manager and Chief Financial Officer to investigate alternative sources of funding for consideration and report to the Budget Committee, such report to include options to reduce or eliminate the recommended tax increase in 2014 and further reduce the tax increase to .25% for the remaining phase in years.

4.         Direct the appropriate City officials to seek the necessary approval under the Environmental Assessment Act be sought using the Transit Project Approval Process as set out in Ontario Regulation 231/08, as amended.

5.         Authorize the appropriate City officials to take all actions necessary to give effect to this recommendation.