Item - 2022.EX34.5

The Executive Committee recommends that:  

1. City Council authorize the City Manager, and any other relevant City Officials, in consultation with the Chief Executive Officer, Toronto Transit Commission, to finalize negotiations, enter into and execute an Eglinton Crosstown Light Rail Transit - Train Operating and Funding Agreement with Metrolinx and the Toronto Transit Commission, based on the Term Sheet set out in Attachment 1 to the report (June 29, 2022) from the City Manager, and any such necessary ancillary or related agreements, amendments and renewals (including with any other relevant parties), all substantially in accordance with the Term Sheet and on such other terms and conditions satisfactory to the City Manager and the Chief Financial Officer and Treasurer and any other relevant officials, and in a form satisfactory to the City Solicitor.

2. City Council forward this report to the Toronto Transit Commission Board.

The Eglinton Crosstown Light Rail Transit (ECLRT) is a 19-kilometre light rail transit line that will run along Eglinton Avenue between Mount Dennis Station and Kennedy Station, with 25 stations and stops that will link to over 50 bus routes, three existing subway stations and various GO Transit lines. Metrolinx has ownership of the ECLRT and is funding and delivering the project, as established by the 2012 LRT Master Agreement. The City will fund operations and day-to-day maintenance (i.e., non-lifecycle maintenance) and the TTC will operate the ECLRT. At this time, Metrolinx anticipates that the ECLRT will reach substantial construction completion by late 2022.

A clear understanding and agreement between the City, TTC and Metrolinx on funding obligations, approvals, dispute resolutions and decision-making processes is critical to the successful implementation and operation of the ECLRT. This report recommends terms negotiated by City and TTC staff with Metrolinx that will govern the funding, operations and maintenance of the ECLRT. The proposed terms expand on the 2021 Revised Agreement in Principle, by outlining the details of the City's funding obligations, the TTC's operating performance and maintenance requirements, revenue and payment processes, renewal and dispute terms, and liabilities and remedies for non-fulfillment of obligations. The terms for operating and maintenance of the ECLRT will be established in a Train Operating and Funding Agreement.

This report seeks City Council authority to execute an ECLRT Train Operating and Funding Agreement with the TTC and Metrolinx based on the key terms identified in this report and set out in Attachment 1.