Item - 2024.EX11.7

The Executive Committee recommends that:

1. City Council authorize the Deputy City Manager, Infrastructure Services, or their designate, in consultation with the Chief Executive Officer, Toronto Transit Commission, to finalize negotiations, enter into and execute the Finch West Light Rail Transit - Train Operating and Services Agreement with Metrolinx and the Toronto Transit Commission, based on the Term Sheet set out in Attachment 1 to the report (January 16, 2024) from the Executive Director, Transit Expansion, 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 Deputy City Manager, Infrastructure Services, the Chief Financial Officer and Treasurer and any other relevant officials, and in a form satisfactory to the City Solicitor.

2. City Council forward the Item to the Toronto Transit Commission Board.

The Finch West Light Rail Transit is an 11-kilometre light rail transit line that will run along the surface of Finch Avenue West between the existing Finch West Subway Station and the new Humber College Station, with 18 stops that will link to Line 1 (Yonge-University line), Toronto Transit Commission (TTC) buses, as well as GO Transit, MiWay, Viva, and Zum transit services. The Province, through their agency Metrolinx, has ownership of the Finch West Light Rail Transit and is funding the construction and delivery of the project, as established by the 2012 Light Rail Transit Master Agreement.[1] As per the Master Agreement, the City is responsible for funding operations and day-to-day maintenance (i.e., non-lifecycle maintenance) of the Finch West Light Rail Transit and the TTC is responsible for operating the Finch West Light Rail Transit. The City will be reimbursed for annual operating funding over three years beginning in 2024 for the Finch West Light Rail Transit through the Ontario-Toronto New Deal. At this time, Metrolinx anticipates that the Finch West Light Rail Transit will achieve Substantial Completion and be ready for revenue service operation by the end of 2024.

A clear understanding and agreement between the City, TTC and Metrolinx on the operating procedures, funding obligations, approvals, dispute resolution and decision-making processes is critical to the successful implementation and operation of the Finch West Light Rail Transit. This report recommends terms negotiated by the City and TTC with Metrolinx that expand on the terms of the 2021 Revised Agreement in Principle[2]. The terms in this report outline the details that will govern the City’s funding obligations, the TTC’s operating performance and maintenance requirements, revenue and payment processes, renewal and dispute terms, and processes for resolving non-fulfillment of obligations. As such, this report seeks City Council authority for City staff to execute the Finch West Light Rail Transit Train Operating and Services Agreement with the TTC and Metrolinx, based on the key terms identified in this report and set out in Attachment 1. Should City Council approve the recommendations in this report, the Train Operating and Services Agreement is expected to be executed in the first quarter of 2024.

[1] https://www.toronto.ca/legdocs/mmis/2012/cc/bgrd/backgroundfile-53862.pdf
[2] https://www.toronto.ca/wp-content/uploads/2021/08/9672-revised-ontario-toronto-agreement-in-principle-2021.pdf