Item - 2019.EX4.1

The Executive Committee recommends that:

Public Transit Infrastructure Fund Phase 2 Federal Funding Allocation

1.  City Council direct the City Manager to advise the Government of Canada and the Province of Ontario of the City of Toronto's priority transit expansion projects for its allocation of $4.897 billion in federal funding under the Investing in Canada Infrastructure Program Public Transit Infrastructure Fund Phase 2 program as follows:
 

a.  $0.660 billion as previously approved by City Council in October 2013 (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 (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 these recommendations and upon such terms satisfactory to them in consultation with the City Solicitor.

Line 2 East Extension Project

4.  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, and 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.

5.  Subject to the fulfillment of the conditions set out in Recommendation 4 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.

6. Subject to the adoption of Recommendation 4 above, 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 Toronto Transit Commission, substantially in accordance with the terms and conditions outlined in Confidential Attachment 1, and on such other or amended terms and conditions as may be acceptable to the Director 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 he 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.

7. 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.

8.  City Council amend Section 591-2.1 of Municipal Code Chapter 591, Noise, to add the Line 2 East Extension to the list of Major Transit Projects provided that the exemption for government work contained in Item EC3.6 is not adopted by City Council.

 
9.  City Council request the following should Part a or b of Recommendation 4 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 (EX3.1a); 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

10.  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.

 
11.  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. 

12. 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

13.  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, including a discussion with major institutional stakeholders;

 
c.  commencing the preliminary design and engineering phase of the Eglinton East Light Rail Transit project; and
 

d.  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

14.  City Council direct the Deputy City Manager, Infrastructure and Development Services to report back to 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.
 

15.  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

16.  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; and

 
2.  the Eglinton East Light Rail Transit; and

 
b.  the procurement and construction phase of the Waterfront Transit Network - Exhibition Place (Exhibition Loop to Dufferin Gate Loop).
 

17.  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.

18.  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, boards and commissions.

The City Manager gave a presentation on Toronto's Transit Expansion Program - Update and Next Steps.

The Executive Committee requested the City Manager to report directly to City Council at its meeting on April 16 and 17, 2019 regarding new information from the Province on transit upload or transit expansion.

In 2016 City Council approved a transit network plan that identified projects required to address capacity constraints on the existing subway network (specifically Line 1), support future growth and city building objectives, and provide rapid transit service to underserved areas of Toronto. Over the last several years, $224 million has been invested to advance City Council's priority projects. As a result, several projects will be ready to go to procurement and construction in 2019/2020, including the SmartTrack Stations Program, the Line 2 East Extension Project, the Exhibition Loop-Dufferin Loop Streetcar Connection (a priority segment of the Waterfront Transit Network Plan), and the Relief Line South. Other key projects still in early planning phases continue to progress as well, such as BloorYonge Capacity Improvement, Eglinton East and West Light Rail Transit extensions, and the Waterfront Transit Network Plan.

This is a critical moment to build transit, and to leverage the investment to date in planning, design and engineering work to achieve that objective. This report provides a comprehensive overview of the current status of Toronto's transit expansion program, and seeks City Council direction to advance progress on building the network.

In 2018, the Government of Canada and the Province of Ontario announced an agreement on Phase 2 of the Investing in Canada Infrastructure Program, which included $4.897 billion in federal funding and $4.040 billion in provincial funding for public transit infrastructure projects in Toronto. The Public Transit Infrastructure Fund Phase 2 is a ten year program (2018-2028) under the Investing in Canada Infrastructure Program designed specifically for projects that build the transit network. The Public Transit Infrastructure Fund Phase 2 program is focused on delivering the following outcomes:

- Improved capacity of public transit infrastructure;

- Improved quality and/or safety of existing or future transit systems; and

- Improved access to a public transit system.
 

Funding under Public Transit Infrastructure Fund Phase 2 has been allocated to Toronto based on ridership. Under the Public Transit Infrastructure Fund Phase 2 program, both the provincial and federal government must approve projects submitted by the City in order to receive funding.

The City is well positioned to leverage this intergovernmental funding opportunity and invest in projects that will address a key City and Toronto Transit Commission priority: ensuring the safety and reliability of the Toronto Transit Commission system. This report provides City Council with recommended priorities for the City of Toronto's federal funding allocation under the Public Transit Infrastructure Fund Phase 2 program.

A total of $1.245 billion in federal funding has already been prioritized by City Council:

- $0.660 billion to the Line 2 East Extension project (as approved in 2013); and

- $0.585 billion to the SmartTrack Stations Program (as approved in 2018).
 

The Line 2 East Extension Project project is required to replace the Line 3 system that has been in service for over 30 years. The Line 2 East Extension Project project addresses broader city-building objectives, but is also critical for the purpose of replacing an asset at the end of its useful life. The SmartTrack Stations Program leverages the provincial investment in GO Expansion to address both growth and city-building objectives and also helps to provide additional transit choice to downtown.

This report recommends that City Council confirm the Relief Line South and Bloor-Yonge Capacity Improvement as priority projects for the remaining $3.651 billion of the City's federal funding allocation under the Public Transit Infrastructure Fund Phase 2 program. Specifically:

- $3.151 billion in federal funding for the Relief Line South; and

- $0.500 billion in federal funding for the Bloor-Yonge Capacity Improvement project.
 

Today, Line 1 has an average daily weekday ridership of over 730,000 riders, making it one of the busiest lines in North America. The Relief Line South, Bloor-Yonge Capacity Improvement project and other related capital enhancements included in the Line 1 Capacity Requirements Program, are critical to reducing overcrowding and congestion on the Line 1 subway, and are necessary to ensure the system is able to safely accommodate future network demand as a result of both population growth and expansion.

The federal funding contributions requested for the four projects comprise the City of Toronto's total federal funding allocation of $4.897 billion under the Public Transit Infrastructure Fund Phase 2 program.

The recommendations for allocating federal funding are based on the urgent need to address Line 1 capacity and safety as a first priority. Advancing projects that are procurement and construction-ready is also an important consideration in order to ensure investments in planning, design and engineering are utilized, and currently resourced project teams can be leveraged to continue momentum in building transit.

The City is continuing to hold discussions with the Province on the proposed realignment of transit responsibilities between the parties (i.e., "Upload"). The outcomes of this discussion will inform provincial and municipal cost sharing for subway infrastructure projects identified above for federal funding. It is important to note that recommendations in this report are agnostic of asset ownership and are based on what is required to best serve the transit network and the safety of riders.

In order to take advantage of future intergovernmental funding opportunities, the City must continue to advance projects through the early planning and design phases of the project lifecycle in order to have projects that are "shovel ready". The Waterfront Transit Network and Eglinton Light Rail Transit extension projects support the City's long-term city building objectives as outlined in the Toronto Official Plan.

This report makes the following recommendations on key city building projects:

- Advance preliminary design and engineering of the Streetcar Loop option for the Union Station-Queens Quay Link and East Bayfront Light Rail Transit, an important component of the Waterfront Transit Network; and

- Request Metrolinx to partner with the City to develop a plan to undertake preliminary design and engineering  for two phases of the Eglinton East Light Rail Transit: (i) an easterly extension of Line 5 (Eglinton Crosstown) from Kennedy Station to University of Toronto Scarborough; and (ii) an extension to Malvern Centre.
 

Staff will be reporting in the fall of 2019, prior to the 2020 budget process, on updated funding and financing strategies for projects that are not currently contemplated for funding under the Public Transit Infrastructure Fund Phase 2 program. The outcome of ongoing discussions with the Province will inform that strategy.

The Province of Ontario communicated to the City on March 22 and March 26, 2019 in letters from the Deputy Minister of Transportation, and the Special Advisor to Cabinet - Transit Upload, new plans for Toronto's transit network, and identified proposed changes to the Relief Line South and Line 2 East Extension - two projects ready to advance to procurement and construction in 2019/2020 based on current plans. This report identifies additional information required from the Province, as well as due diligence that will need to be undertaken to assess the potential cost, schedule and other impacts associated with the new transit proposals. The Province and/or Metrolinx have shared limited information to date.

The City remains committed to building the transit network and entering into a constructive dialogue with the Province. To assist in ongoing discussions with the Province, it is important to establish Toronto's key interests and objectives - a safe and reliable transit service for Toronto transit riders. This report lays out clear priorities for City Council's consideration with respect to the expansion of Toronto's transit network. Given the Province's role in identifying projects for submission to the federal government under the Public Transit Infrastructure Fund Phase 2 program, further discussion with the Province will be required.

This report was prepared in consultation with the Chief Executive Officer, Toronto Transit Commission.

This report seeks authority to enter into and execute Minutes of Settlement pursuant to Section 24 of the Expropriations Act (the "Act"), to settle various claims with respect to the properties municipally known as 300 Borough Drive, 530 Progress Avenue and 580 Progress Avenue (collectively the "Property"), as shown on the Location Map in Appendix "D", in advance of constructing the Line 2 East Extension of the Toronto Transit Commission Subway System (the "Project").

Approval to enter into the Agreement is contingent on City Council adopting the Recommendations, in relation to the Project, provided in the Line 2 East Extension Attachment within the report (April 3, 2019) from the City Manager on Toronto's Transit Expansion Program - Update and Next Steps  ("Transit Expansion Report") that this report supplements.