Updated April 13, 2015:
The TTC has issued a press release regarding the management of the Spadina subway extension project:
The Toronto Transit Commission has entered into an agreement with Bechtel Canada Co. for project management of the Toronto-York Spadina Subway Extension (TYSSE) for up to $80 million.
The contract value to Bechtel is based on staffing costs, management fees and incentives to open the subway extension by Dec. 31, 2017. Bechtel staff begin work today and will form an integrated team with existing TTC personnel. The Bechtel contract will expire March 31, 2018. Bechtel’s project director will report directly to TTC CEO Andy Byford.
On March 26, the TTC board approved a report from staff that recommended TTC enter into a sole source agreement with a project manager with a proven track record of delivering similar-sized projects on time, and with experience working with multiple contractors, in order to have the TYSSE in service by Dec. 31, 2017.
Toronto City Council subsequently authorized the expenditure of $90 million, while the Regional Municipality of York authorized the expenditure of $60 million, for a total of $150 million (third party contractor, plus in-house project costs), to fully deliver TYSSE by the end of 2017.
The release is silent on the issue of what might be done with the remaining $70m of Toronto/York’s $160m authorization.
Original article of March 29, 2015:
In a previous article, I reviewed information from a media briefing by Andy Byford on the status of the Toronto York Spadina Subway Extension (TYSSE) project. At the TTC Board meeting on March 26, 2015, further information was made public both in Byford’s presentation, and in additional material appended to his report.
Updated March 30, 2015 at 1:30 pm: The slides from Byford’s presentation are now available starting at page 58 of the linked pdf.
Updated March 30, 2015 at 11:30 pm: A new report from the Toronto City Manager to Council advises that the interest earnings on the “Move Ontario Trust” (the repository for provincial contributions to the TYSSE project) have not achieved the target rate of 4% resulting in an $85m shortfall. Oliver Moore reports in the Globe that Ontario has refused to make up this amount as per the original agreement between the funding partners. Toronto and York Region are on the hook for this additional cost estimated at $51m for Toronto and $34m for York Region. This expense is over and above the cost overruns on various contracts, but at least Council cannot blame the TTC because the trust fund is not under TTC control.
Appendix F (beginning at page 33 of the linked PDF), is a presentation given to the Executive Task Force who oversee the project on behalf of the sponsoring governments on July 28, 2014. The presentation was given by Parsons Brinkerhoff who had been retained by the TTC to review the project.
Appendix G (beginning at page 56) is a two-page summary of Bechtel’s work reviewing PB’s original study and a subsequent APTA (American Public Transit Association) peer review. APTA concluded that an earlier completion date would be possible than PB had projected, but only with major changes to the project management structure. Bechtel concurred in these findings.
It is abundantly clear from this material that the TYSSE’s problems were known at the top level of the project in mid-2014 at the latest. At the time, their severity was so great that the project would still be incomplete by the time of the next municipal and provincial election cycles, and that considerable additional cost could be facing the funding partners. This very serious issue did not arise in public discussion until six months later, notably after Toronto’s 2015 budget cycle was complete.