So You Want To Own A Subway (2018 Edition)

Among the many promises made by the Progressive Conservative Party in the run-up to the June 7 election is a scheme to upload the Toronto subway system to the province with the intention of relieving Toronto of this ongoing cost. This was also part of their 2014 campaign, and it is born no doubt from the Ford brothers’ assumption that (a) this could be done cheaply and (b) Toronto would save money overall. The pot is sweetened this time around with the guarantee that Toronto would keep the fare revenue and operate the system. The overall tradeoffs in operating and capital costs are not entirely nailed down.

Oliver Moore in the Globe has written about this proposal wondering whether it is actually workable. The quotes below are taken from his article.

The Tories are framing the upload largely as an accounting exercise, making it easier to find funding and thus facilitating transit construction. The province would pay an estimated $160-million annually for major capital maintenance on the subway network, taking an obligation off city books.

Under the proposal, the Toronto Transit Commission would keep operating the subway, with its board setting fares and the city retaining revenues. Expansion planning would be controlled by the province, although Toronto and Ottawa would be asked to help fund construction.

Note that the proposal is silent on the operating cost of the subway. There is something of a myth that the subway “breaks even”, but this is not true, especially for the more-recently opened segments. It is a matter of record that the Sheppard Line loses money, and the TTC estimated that the operating impact, net of new fares, of the Vaughan extension would be $30 million per year.

If the province builds a new subway line, would Toronto, through the TTC, still be on the hook for paying its operating cost?

Any concept of “breaking even” requires that fares be allocated between surface and subway routes and this is an impossible task. One can propose many schemes, but they all have built-in biases because a “trip” and a “fare” are such different things. The situation is even more complex as an increasing number of riders pay through some form of pass all the way from the yearly Metropass (formerly called the “monthly discount program”) down to the two-hour transfer.

How Much Does The Subway Cost?

The estimated value of an upload to Queen’s Park of $160 million/year is woefully inadequate because the TTC’s capital budget for ongoing maintenance is much, much larger. There is much more to owning a subway than collecting billions in construction subsidies. Despite the frequent claim that “subways last 100 years”, they require a lot of ongoing maintenance and replacement of subsystems. With the exception of the physical tunnel and station structures, a large proportion of the older subway lines has been completely replaced or undergone major overhaul at least once since they opened. Line 1 YUS is on its third generation of trains, for example.

I wrote about this four years ago, and this article is an update of my earlier review.

A big problem arises for anyone taking a superficial look at the TTC’s books because so many projects are not funded, or are not even part of the approved “base budget”. They are “below the line” or, even worse, they are merely “proposals” of future works that might find their way into the official list. Looking only at current, approved funded projects ignores a large and growing list of projects that, for political convenience, are out of sight, the iceberg below the water line.

Slogging through the TTC’s Capital Budget is no fun, but somebody has to do it. You, dear readers, get the digested version of hundreds of pages of reports. Thank you in advance.

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TTC Contemplates Earlier Subway Closing

At the TTC’s Audit & Risk Management Committee meeting of May 29, 2018, staff presented a report entitled Internal Audit Quarterly Update: Q1 2018. That is not the sort of title that would prompt avid late-night reading, but one item within the report sparked a brief conversation between the committee and staff.

There are several issues related to the management of overnight work in the subway which requires a variety of resources including staff, work cars, power cuts and central supervision to keep all of the crews from tripping over each other. One part of the ongoing audit work is to review the systems (many automated, but some manual) used to schedule and track the work plans, but another issue raised was the relatively short maintenance window within which work can be done. Responding to a question, staff advised that they are reviewing the operating hours of the subway to determine whether changing these hours could improve the productivity of overnight maintenance work.

Here are extracts from the report:

Audit Observation #3: Track Level Maintenance Window

TTC’s revenue subway service hours limit the nightly maintenance window, which impacts the efficiency and effectiveness of track level work and exposes subway infrastructure to accelerated deterioration.

Limited Track Level Maintenance Window

Per an international CoMET/Nova benchmark study of “Metro Key Performance Indicators (2016 data)”, TTC ranked fourth amongst 34 participants in terms of subway service density or network utilization – a standardized method that measures operated passenger capacity compared to network size. This KPI reflects the ‘intensity of utilization of the metro network’, which is a function of train frequency, train length and car capacity. The study asserts high train frequency may reflect a good use of fixed infrastructure, but the intense impact on asset utilization should be warranted by ridership demand, i.e., recognizing the need to balance competing objectives of making subway service more available for customers versus the costs associated with accelerated deterioration of subway infrastructure and assets due to an increase in daily use. The study comments that TTC offers relatively high levels of capacity primarily due to larger trains and higher frequencies across its entire, relatively small network.

TTC track level work starts once the system is fully cleared of revenue trains. TTC’s subway system is closed to the public at 1:30am and opens at 6:00am on week days and Saturdays, and at 8:00am on Sundays. However, trains continue to run through the system until approximately 2:30am and re-enter the system at around 5:30am, leaving an average total available daily maintenance window of 180 minutes (300 minutes on Sundays as service preparation starts around 7:30am).

Night shift work typically runs from 10:30pm to 7am, including a 30-minute unpaid meal break. Per discussion with Subway Infrastructure management, track level set-up activities typically start at 2:45am and Transit Control requests crews to complete work and start clearing the track at 5:00am. Work activities expected to be performed out-side of this track level access time period include employee roll-call, safety-talks/briefings, work car preparation, and tools maintenance, etc.

[…]

In a Nova comparison study, “Track Possession Timings ” (2014), it was noted that given TTC’s subway service hours, and taking into account estimated time required for set-up and safety check activities, as well as post work preparation for service, TTC workers’ total available time to work productively at track level was between 30 and 225 mins less than the other ten participants. Further, the average maintenance window of these other participants was almost 2hrs longer than that of TTC.

If the maintenance window was to be increased by 2 additional hours, 5 nights a week, Audit estimates the opportunity for improved productivity by SI’s Track Maintenance and Structure Maintenance Sections alone to be valued at approximately $3.38 million. Such a change would also reduce overtime and potentially the need for weekend closures by these two groups. Based on payroll data, Track Maintenance and Structure Maintenance incurred overtime costs of $4.58M and $1.26M respectively in 2017. Structure Maintenance Management estimates that if the maintenance window was to be extended by 2 hours, 5 nights a week, the annual overtime for this Section could be reduced by 75%, which in 2017, would be equal to approximately $945K. It is reasonable to assume productivity improvements and material overtime savings could be realized by other groups that complete maintenance and capital project work at track level if the maintenance window is extended.

[pp 8-9 of Attachment 3, at pp 27-28 of the document]

Note that the “other ten participants” are not listed nor are the relative service levels of their transit systems mentioned to indicate whether they are valid comparators for Toronto.

A proposed action plan appears a few pages later in the report:

Audit Observation #3 – Management Action Plan Considerations:

To maximize and optimize the track level maintenance window, Management should:

  • Evaluate actual ridership and revenue associated with TTC’s late-night subway service (after midnight runs) to ensure current intensity of service and impact on subway infrastructure (and vehicle) asset maintenance costs are warranted.
  • Conduct in-depth analysis of TTC’s current subway infrastructure asset management approach, resource planning and crewing methods, work car dispatching techniques and work methods to identify opportunities for maximizing productivity and transparency of resource utilization at track level.

This was striking on at least two counts.

First, there is no recognition in the report that closing earlier is anything more than a question of sending trains back to the yard earlier, and no mention of providing replacement service. It is no secret that night buses on Yonge and Bloor-Danforth are very heavily loaded after 2 am and, if anything, more service is needed then. A similar problem occurs during the early part of the day before the subway opens. The auditors also seem to be unaware that there is no night service to replace the University-Spadina subway, and this is difficult (as users of Spadina shuttles know) because the subway does not follow an arterial road like Yonge or Bloor.

If two hours were added to the shutdown period, the amount of bus service required to replace the subway would be substantial, and it is likely that ridership would be lost thanks to the relative inconvenience. Moreover, there would be knock-on effects for users of connecting bus services who would face much longer journeys to their connection points on a surface bus, and who might also face a decline in service thanks to the unattractiveness of the night bus replacement for the subway.

This change could actually trigger a system-wide retrenchment of service hours.

Second, there was absolutely no intimation that anyone at the meeting was aware of just how severe the impacts of this proposal would be on riders, nor was there any attempt to defend their interests. Indeed, the focus is on making the maintenance teams more efficient and saving millions without considering the offsetting costs and potential lost revenue.

Some of the basic assumptions in the text quoted above are wrong, notably a claimed closing time for the subway of 1:30 am. In fact, the closing time varies across the system. There is a scheduled meet of the last northbound, eastbound and westbound trains at Bloor-Yonge at about 1:54 am that has been in place since the BD line opened in 1966. Stations close as these last trains make their way outbound to terminals. One might hope the auditors would check with TTC planners or even simply look at their own website.

The last train eastbound on Line 4 Sheppard does not leave Yonge-Sheppard station until 2:14 am.

It is quite clear to anyone who actually rides the subway late at night that it does not close at 1:30 am across the network. This is only the start of a process that continues until about 2:30 am, and some trains have to return to their overnight storage locations even later. The maintenance window varies depending where one is on the network.

The comment in the report about “accelerated deterioration of subway infrastructure and assets” is a function of the very frequent service the TTC provides across the entire subway system at all hours with trains every 5 minutes or better until almost the end of service. How much extra wear and tear this represents since the subway opened in 1954 might be of interest, but this service level is a matter of TTC Service Standards. One could argue that full service is not required, based on demand, beyond a core portion of the system late at night. However, I dare any politician to stand up and tell suburban Toronto that they will lose their frequent service just because the trains are not full.

Another issue here is that actually running the trains is only part of total subway costs, and unless one can also drop staffing levels associated with stations, security, line supervision and on-call maintainers, the saving of running, say, only half of the service beyond a turnback point such as Eglinton is small. The same consideration applies to running less frequent service generally – the trains are only part of the overall operating cost.

It is important to note that this “accelerated deterioration” is a function of frequent service over long hours, not some side-effect of inefficient maintenance procedures as one might erroneously read the audit report.

I hope that if there is a detailed study, it will take into account the benefits of good late night and early morning service on the subway, not to mention the requirements for substantially improved night bus service. Indeed the existing night service needs improving, but languishes thanks to a combination of indifference and budget restraints.

It is only a few years since the TTC began Sunday service at 8:00 am rather than 9:00 am in January 2016.

In a Nov. 4, 2015, letter to the Board, Mayor John Tory and Chair Josh Colle wrote:

“As a vibrant and growing city, Toronto does not conform to a traditional Monday to Friday schedule … Our businesses are open, our cultural centres are operating and the engines of our economy remain in motion. The people of Toronto should be able to move around this city with ease — seven days a week — and the TTC plays an instrumental role in providing this mobility.”

Early Sunday openings are the latest service improvement to be introduced in recent months, following this year’s expansion of overnight service and all-day, every-day service across the city, implementation of ten-minute-or-better service and reduced off-peak crowding on bus and streetcar routes.

Someone should send a copy of this letter to the auditors who appear to be incapable of making a full evaluation of the effects of their recommendations or even appreciating the seriousness of what they propose. “Efficiency” in one department does not mean better service for the organization and the City as a whole.

Relief Line South Station and Alignment Plans

Detailed study of the southern portion of the proposed Relief Subway Line from Pape & Danforth to Osgoode Station is now underway including public consultation sessions on the design. Two of these have already occurred as I write this on April 29, but one session does remain:

Monday, April 30, 2018, 6:30 to 8:30 pm at Morse Street Junior Public School, 180 Carlaw Ave (south of Queen)

The first session was held near Pape & Danforth on April 23, and it was a packed house because construction of this line will have a major effect on properties along the route through Riverdale. Much of the detailed information is not available online because of the size of the files. This article contains snapshots of station and alignment plans along the route at a resolution sufficient to see the details while staying within reason for online viewing. (All of the illustrations are clickable to see a larger version. Some of them have artifacts of viewing large files at a reduced scale, notably the partial graying-out of some text.)

Commentary on the designs is my own except as noted.

Thanks to the City of Toronto Planning Department for provision of the electronic versions of the plans from which the illustrations here are taken.

For further information, please see the Relief Line South website.

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PTIF Phase 2: The Lottery Win Is Not As Big As It Seems (Updated)

Updated March 16, 2018 at 5:15 pm: The Fire Ventillation Project which includes second exits from several stations was omitted from the list of major projects in the original version of this post. It has been added.

Updated March 16, 2018 at 3:25 pm: The Ontario Ministry of Infrastructure has clarified that the Ontario funding for the Scarborough Subway is separate from the $4 billion in matching dollars shown in the table below.

On March 14, 2018, the Federal and Provincial governments announced the scale of the second phase of the Public Transit Infrastructure Fund (PTIF) to be spent over the next decade. Some of the details are in a backgrounder.

Funding allocations for the Toronto area are summarized in the table below. The amounts are based on transit ridership, not on population, and so Toronto gets by far the largest share of the pie.

Source: Infrastructure Canada Backgrounder

If one believed the ecstatic response of politicians and some media, one might think that all our transit prayers have been answered.

Not quite.

An additional $9 billion is not exactly small change, but Toronto has a huge appetite for transit spending and a daunting project backlog. The new money will help, but with it comes the requirement that Toronto pony up about $3 billion for projects that are not in the city’s long-term budget.

Capital planning for many years understated the infrastructure deficit by hiding projects “below the line” outside of the budget, and even more by leaving important work off of the list completely. The infrastructure deficit is much larger than the TTC reports and city financial plans indicate.

That, in turn, affects the city’s financial planning, subject of a recent report from the City Manager. Despite assurances from city staff that all known TTC costs have been included in their projections, there is a long history of the TTC leaving significant projects out of funding lists to keep their total “ask” down to a politically acceptable number.

Much needed work is not the sexy, photo-op rich stuff of subway extensions, but the mundane business of buying new equipment to replace old cars and buses, and to increase system capacity.

The new plan is to run for ten years. The money will not all land in Toronto’s hands this year, but will be parceled out as projects are approved and actual spending occurs. There is no guarantee that a future government will stick to any commitments especially if the “funded” projects are not the subject of a binding agreement. Toronto has its share of cancelled projects including the Sheppard Subway, cut back to Don Mills, and the Eglinton West Subway (both victims of Mike Harris), not to mention Transit City and the pliable attitude of various governments to the worth of a subway in Scarborough.

Updated March 16, 2018 at 3:25 pm:

Before we even start into the possible projects to be funded, some money is lopped off the top based on a past commitment.

  • Ottawa will provide “up to $660 million for the Scarborough Subway extension project, pending submission and approval”.
  • It is unclear how much of the provincial commitment to the SSE of nearly $2 billion is included in the $4 billion under the new program.

This brings the available federal funding down to about $4.237 billion.

Whether the total available from Queen’s Park is $6 billion ($4b new plus $2b for the Scarborough Subway), we do no know. I have a question in to the Ontario Ministry of Infrastructure to clarify this. They have acknowledged the question, but have not replied as of 11:45 am, March 16.

Update: The Ministry of Infrastructure has clarified how the previous SSE funding fits with the newly announced program:

Ontario is committed to cost-matching federal funding for municipal projects at 33 percent. This equates to $4 billion from the province to match the City of Toronto’s $4.9 billion federal allocation. No previously committed funding for Toronto projects is included in this allocation.

Ontario’s commitment to match this new federal funding at a 33 per cent share is separate from and above the province’s previous commitment of $1.48 billion in 2010 to the Scarborough Subway. [Email from Alex Benac, Press Secretary to the Minister]

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TTC 2018 Capital Budget: (1) Fleet Plans

The TTC’s detailed version of the Capital Budget is known as the “Blue Books” because they are issued in two large blue binders. They are not available online. Over coming weeks, I will post highlights from this material beginning with the fleet plans.

These plans were drawn up in late 2017 as the budget was finalized, and there have actually been changes since that are not reflected here. I will note these where appropriate.

For starters, a review of how all of these capital projects are paid for.

Financing and Funding the Capital Budget

The TTC’s budget process at times looks like a game of Three Card Monte where one is certain that one card is the Queen of Diamonds, but never quite sure where she is. This shows up in various ways:

  • There is a “base program” consisting of projects that have Council approval for inclusion in the ten-year plan. The estimated cost of this program is $9.240 billion, but there is funding shortfall of $2.702 billion.
  • There is an “unfunded list” of projects making up the shortfall. These will migrate to funded status as and when money becomes available.
  • The City requires that the TTC make provision for “capacity to spend” reductions in its projects based on the premise that all of the money in the budgets will not actually be used. This offsets $427 million of the shortfall, although one can argue that this is a polite fiction meant to convey the idea that the funding hole is not quite as deep as it seems. The premise is that not all projects will be spent to their full budgets, and an across-the-board provision will soak up the underspending. In practice, some of this “shortfall” is a question of timing – project slippage that shifts spending to other years – not a question of budgeting too high.
  • Some projects have their own, dedicated funding streams and appear separately from the base program. At present, these are the subway extensions to Vaughan and to Scarborough.
  • Some projects in the base program have funding directed specifically to them. The provincial 1/3 share of the new streetcars is an example. This is separate from provincial money that flows to Toronto from the gas tax.
  • Some projects have timelines associated with the structure of funding programs. Ottawa’s Public Transit Infrastructure Fund (PTIF) Phase 1 requires that projects be completed by March 31, 2019 so that the subsidy is expensed, federally, by the end of the 2018-19 fiscal year. PTIF phase 2 has not yet been announced either as to amount or to the timeframe in which spending will occur. These constraints prevent many projects from receiving PTIF money because they do not fit within the prescribed window for spending.
  • Metrolinx projects do not appear on the TTC’s books, but in some cases they can trigger payments from the TTC and/or the City of Toronto. Examples are Presto and SmartTrack.
  • Some transit proposals are not even in the base program, but wait in readiness as “nice to haves”.

“Funding” is the process of paying for projects, while “Financing” is the mechanism by which that money is raised. A “funded” project is associated with revenue from “financing” sources that the City can depend on such as property taxes and committed monies from other governments. Where there is a shortfall, someone has to step up with new money, however they might raise it, or something must be removed (or at least reduced in scope) from the list of funded projects.

City of Toronto contributions to capital come primarily from current taxes (“capital from current” and development charges) and from borrowing. The amount of borrowing available to the TTC each year is dictated by the City’s self-imposed 15% cap on the ratio of debt service costs to property tax revenue. A few major projects in the near future, notably the Gardiner Expressway rebuild, are crowding the debt ceiling, and there are years when little new debt will be issued on the TTC’s behalf. In turn, this affects spending plans at the TTC, and projects are shifted into future years with more borrowing room to get around this.

Other constraints can arise from a program like PTIF which, because it has a sunset date, requires that spending that might otherwise occur some years in the future must actually happen sooner than planned. This, in turn, requires matching funds from the City in years where they might otherwise have been spent on other projects.

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Toronto’s Transit Capacity Crisis

In recent days, Mayor Tory has announced, twice, a ten point program to address crowding on the TTC. The effectiveness of this program is limited by years of bad political decisions, and the hole Toronto has dug itself into is not one from which it will quickly escape.

This article is a compendium of information about the three major portions of the “conventional” (non-Wheel-Trans) system: subway, bus and streetcar. Some of this material has appeared in other articles, but the intent here is to pull current information for the entire system together.

Amendment February 15, 2018 at 5:30 pm: This article has been modified in respect to SmartTrack costs to reflect the fact that over half of the cost shown as “SmartTrack” in the City Manager’s budget presentation is actually due to the Eglinton West LRT extension which replaced the proposed ST service to the commercial district south of the airport. A report on SmartTrack station costs will come to City Council in April 2018. Eglinton LRT costs will take a bit longer because Council has asked staff to look at other options for this route, notably undergrounding some or all of it.

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TTC Board Meeting February 15, 2018

The TTC Board will meet on February 15, 2018. Among the items on the agenda are:

Scarborough Subway Extension (SSE)

The SSE itself is not on the agenda, but it has been the subject of much recent debate over when the projected cost and schedule for the extension will be released.

In the November 2017 CEO’s Report, the project scorecard included a schedule showing that 30% design would be complete in the second quarter of 2018, and an RFP [Request for Proposals] would be issued in the third quarter. Even when this report came out, former CEO Andy Byford was hedging his bets about a spring 2018 date saying that more work would be needed to verify and finalize the figures. A key note in this scorecard states:

EFC [Estimated Final Cost] was approved in 2013 based on 0% design. With the alignment/bus terminal now confirmed by City Council, the project budget and schedule will be confirmed as design is developed to the 30% stage, factoring in delivery strategy and risk. The performance scorecard will continue to report relative to the project’s original scope, budget and schedule, as approved by Council in 2013, until the project is rebaselined at the 30% stage in late 2018.

In other words, neither the schedule nor the projected cost reflected the evolving and expanding design of this project.

Jennifer Pagliaro in the Star wrote about the result of a Freedom of Information Request that revealed a briefing to Mayor Tory in September 2017. That briefing included a statement that the cost estimate for a Stage 3, 30% design, would be available in September 2018.

Because Council will not meet until 2019, numbers that might have been available before the election would not be released until after the new Council takes office. After the story appeared, City staff replied:

The cost information referenced in page 9 of the October TTC briefing deck refers to the planned timing for initial cost inputs from TTC engineering staff. These are not the full cost estimates necessary for consideration by Council. Further work will be required to appropriately account for financing, procurement model, market assessment and other critical factors. The final cost estimate, subject to the variability ranges noted below, will include these inputs.

This additional work will be undertaken by various TTC staff as well as city officials from corporate finance, financial planning, city planning and other divisions. [Tweet from Jennifer Pagliaro, February 7, 2018]

I wrote to the TTC’s Brad Ross about this conflicting information, and particularly about the question of how an RFP could be issued in 3Q18 when Council would not be approving that the project pass beyond “stage gate 3” until 2019. He replied:

No RFP will be issued until after Council approval. You will note in the Key Issues and Risks section of the scorecard from November reads, “The performance scorecard will continue to report relative to the project’s original scope, budget and schedule, as approved by Council in 2013, until the project is rebaselined at the 30% stage in late 2018.”

To be consistent with the report to Council in March 2017, only the revenue service date was revised in the scorecard (from Q4 2023 to Q2 2026). The TTC recognizes and acknowledges that this has led to confusion. The TTC will be taking steps to ensure greater clarity in its next CEO Report in March 2018. [Email of February 9, 2018]

The February CEO’s report states:

Work continues to progress design towards Stage Gate 3, expected in fall of 2018. At this time, the project will provide initial cost inputs from the TTC team (includes detailed costs for the Scarborough Centre station, tunnel, Kennedy station, systems, property and utilities). Further work is underway by the new Chief Project Manager with key stakeholders within TTC and the City to define the activities, approval process and timelines to arrive at the final Class 3 Cost Estimate, Level 3 Project Schedule, and associated Risk Analysis.

As requested by City Council, a report will be presented at the first opportunity to the Executive Committee, TTC Board and City Council, which is expected to be Q1 of 2019. [pp 15-16]

The debate, as it now stands, is about releasing whatever material will be available in September 2018 so that it can inform the election debates. Additional costs as cited by the city would sit on top of the September numbers, but at least voters and politicians would know whether the SSE’s cost has gone up just for the basic construction, let alone factors related to financing and procurement that would be added later.

Meanwhile, SSE promoter Councillor Glenn De Baeremaeker speaking on CBC’s Metro Morning said:

I don’t think it matters what the costs are.

This has been taken to read that money is no object, and that well may be the political reality in Scarborough – there is no way the many politicians who have so deeply committed to the subway project can back out. De Baeremaeker continued:

Whether the costs go up or the costs go down, people who have tried to sabotage the subway and stop the subway, will continue to try to sabotage it, they’ll continue to try to stop it, and they will never vote for it. So I would challenge the Councillors who say “I want to see the cost”. My response is and if it’s a reasonable cost, will you support the subway? Well, no. [At 3:26 in the linked clip]

What De Baeremaeker does not address is whether he has an upper limit beyond which even his enthusiasm might be dimmed. Also, on the question of a “reasonable cost”, what has been lost here is the fact that the subway “deal” was sold on the basis that the $3.5 billion included the Eglinton LRT extension to UTSC Campus. What had been a $2 billion-plus subway when it was approved as a compromise by Council, quickly grew to $3 billion-plus, and the LRT extension is left to find alternate funding. One could reasonably ask whether the LRT was ever really part of the deal, or was simply there as a sweetener that pulled in wavering supporters who now see just how gullible they were.

A related issue that has not yet surfaced is the question of whether building the SSE for a 2026 opening will require concurrent changes in timing and/or scope for the planned renewal of the Bloor-Danforth subway including a new signalling system and fleet. A report on the renewal is expected in April 2018, although this date has changed a few times over past months. The TTC/City capital budget and ten year plan do not reflect this project, at least with respect to timing, and probably with respect to total cost.

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TTC Plans Flatlined Service and Fares for 2018 (Updated November 17)

Updated November 17, 2017 at 6:30 pm

The TTC Budget Committee met today and considered the draft 2018 Operating Budget. Between the original release (described later in this article) and today’s meeting, Mayor Tory and two members of the TTC Board endorsed the concept of a two-hour fare to replace the complex transfer rules now in place.

Although this was listed as the second item on the revised meeting agenda, Commissioner Mary Fragedakis moved that it be considered first. This re-ordering was a procedural move to forestall a standard tactic used at City Council where a motion setting the next year’s tax increase is introduced and passed before the budget which it will fund. The result is that any proposed budget changes must fit within the already-approved tax level rather than having taxes set after the budget is finalized. In this case, the motion regarding a two-hour fare was only a report request, and the order was less critical. That request passed by a vote of 3-1 with Budget Chair John Campbell in the negative as he opposes the two-hour fare scheme.

The meeting then turned to a series of deputations which, as these things tend to do, fell on largely hostile ears. A favourite tactic is to challenge members of the public to explain “how would you do  it”, despite the fact that the issues are complex and do not fit within an answer of a few sentences. The Budget Committee itself cancels more of its meetings than it holds, and opportunities for an open debate about transit policy options and the budget rarely occur.

Beyond information already in the budget report, there were a few additional items of note in the staff presentation.

The Cost of the Vaughan Extension

This comes up from time to time, and it is clear that the Committee did not fully understand the costs and revenues associated with the extension.

For some time, a cost increase of $30 million annually has been cited for the TYSSE. However, the 2018 Budget only includes a $25 million bump because $5 million had already been included for start-up costs and operation in the 2017 Budget.

The $25 million comes from a combination of new costs, and revised revenues. The TTC now receives $8 million for bus services operated on contract for York Region, but those services will be assumed by the Region when the subway extension opens. The TTC will continue to operate the vehicles, but now at their own cost and so this is a net increase in costs because of the lost revenue. That amount is partly offset by a combination of $3 million in new fare revenue and $1 million in parking revenue.

Ridership

The projected ridership for 2018 is 539 million, a growth of 3 million over the probable results for 2017, but below the originally budgeted target of 543.8 million. The change from 2017 to 2018 arises from several factors:

Increases:

  • 4.8 million rides due to economic growth
  • 2.1 million rides due to service improvements and the GO Transit co-fare
  • 1.5 million more rides by children (who travel free of charge)
  • 1.2 million new rides from the TYSSE
  • 0.5 million additional rides counted due to improved reliability of Presto readers
  • Total: 10.1 million

Note that most of the expected ridership on the TYSSE will be by existing riders changing travel patterns, not by net new riders. This is further constrained because York Region Transit will continue to serve York University directly thanks to a lack of agreement on a co-fare between YRT and TTC. Riders who were anticipated to show up as YRT-TYSSE-YorkU trips will not be using the subway. It is ironic that there will be more new rides by children on the system as a whole than by riders on the subway extension.

Half a million rides were estimated to have not been counted in 2017 because failing Presto readers were unable to charge these fares. The TTC’s Brad Ross advises that these are

“rides not counted, assuming they still rode but couldn’t pay. The TTC is in the process of accounting for all lost revenue due to out-of-service Presto readers.”

Reductions:

  • 0.5 million rides due to increased subway closures
  • 0.7 million rides due to the elimination of the Public Transit Tax Credit
  • 2.8 million rides due to decreasing sales of Metropasses and Day Passes
  • 3.1 million rides due to a reduction in the average number of trips taken on each Metropass
  • Total: 7.1 million

This provides the net increase of 3 million over 2017 probable results.

Expense Risks

The budget has been drawn up on a conservative basis and leaves several areas where the outcomes in 2018 could be different than projected. The $14 million now sitting in the Transit Stabilization Reserve could be used to offset some of this risk, provided that Council does not scoop the reserve simply to hold down the subsidy increase.

Some of the items below refer to savings that allowed 2017 to show a “surplus” (actually a reduced requirement for subsidy), and these might not all continue into 2018.

The budget contains a provision for $4.1 million in extra costs through the provincially mandated payment for two emergency leave days per year. This has been estimated conservatively, and TTC staff advised the Committee that the worst case cost could be $18 million.

The History of TTC Budget Variances and Subsidies

For many years, the TTC has consistently come in under budget for the annual subsidy requirement. In the table below, the amounts are for the subsidies, not for the overall operating costs. This always leaves the TTC in a position for its next year estimates that a budget-to-budget subsidy flat-line actually represents an increase over actual requirements in the current year.

The subsidy per rider will go up in 2018 because of the fare freeze. Although this takes Toronto back to the level of 2010, that does not allow for cost inflation over that period which has been well above the CPI.

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TTC Service Changes Effective Sunday, December 17, 2017

The December schedules bring the opening of the Spadina subway extension to Vaughan Metropolitan Centre Station and a major reorganization of bus routes along the subway corridor.

2017.12.17_Service_Changes

Bus routes will be reorganized to serve the subway stations, and in some cases services will be split at the subway corridor. The map below is taken from the TTC’s project page for the line.

Services north of Steeles Avenue that were formerly operated by the TTC on behalf of York Region under contract will now be run by their own transit agency. Fares on the subway have yet to be integrated with YRT, and so a TTC fare will apply to subway journeys while a local YRT fare will apply to the bus feeder network. This is the subject of ongoing discussion, and as usual the issue is who will pay to subsidize a lower co-fare between the two agencies.

The subway will continue the same hours of service it now provides, and the new first/last train times are shown in the table below.

The first train of the day inbound from Vaughan will be at about 5:50 am except on Sundays when service begins at 7:50.

The late night schedule is driven by the long-standing meet at Bloor-Yonge between outbound trains to Finch, Kennedy and Kipling stations at 1:54 am. The last inbound train from Vaughan will leave just after 1 am, and the last outbound train will arrive at about 2:30.

Service on the bus routes affected by the subway is generally at levels similar to what operates today with only a few exceptions.

York Region Transit will take over service north of Steeles Avenue now provided by the following routes:

  • 35 Jane
  • 105 Dufferin North
  • 107 Keele North
  • 165 Weston Road North

Route changes:

  • 35 Jane and 195 Jane Rocket: Extended to Pioneer Village Station (Steeles).
  • 36 Finch West: Route split at Finch West Station (Keele & Finch) during most operating periods. Peak service west of Keele Street improved. Service east of Keele will be reduced in many periods recognizing that many riders will not ride east of the station.
  • 41 Keele: Local service extended to Pioneer Village Station. Express service terminated at Finch West Station.
  • 60 Steeles West: Service reorganized to focus on Pioneer Village Station rather than York University.
  • 84 Sheppard West: Peak period Oakdale service extended to Pioneer Village Station. 84E express from Yonge to Sheppard West Station replaces 196B York University Rocket.
  • 106 Sentinel: Formerly named 106 York University. Extended to Pioneer Village Station.
  • 107 St. Regis: Formerly named 107 Keele North. York U service rerouted and extended to Pioneer Village Station.
  • 108 Driftwood: Formerly named 108 Downsview. Extended to Pioneer Village Station.
  • 117 Alness-Chesswood: Formerly named 117 Alness. Rerouted to better serve the area west of Dufferin Street.
  • 196 York U Rocket: Replaced by the subway extension.
  • 199 Finch Rocket: York U branch cut back to Finch West Station.

Night service will be provided to the York U ring road by 335 Jane, 341 Keele and 353 Steeles. The 336 Finch bus will not serve Finch West Station.

Holiday Period Service

The summary of the schedule changes linked at the top of this article includes a page outlining the service to be provided through the December-January holidays. The highlights are:

  • Service on many surface routes and on Line 2 Bloor-Danforth will operate with summer schedules from Monday, December 18 to Friday, January 5. Extra school trips will not operate.
  • Christmas and New Year’s Days will operate with Sunday service including the 8:00 am opening time for the subway.
  • New Year’s Eve service will be extended on many routes until roughly 4:00 am with extra service on the subway.
  • Regular service resume on Monday, January 8, 2018.

New Year’s Eve services include:

  • Service is expected to operate free after 7:00 pm as in past years, but the details have not yet been announced.
  • The last train meet at Bloor-Yonge for outbound service will occur at 3:37 am rather than the usual 1:54 am. The last trains on 4 Sheppard and 3 SRT will wait for the last trains on 1 Yonge and 2 Bloor-Danforth respectively.
  • 501 Queen will divert via Church, King and Spadina after 11:00 pm for festivities at City Hall.
  • 509 Harbourfront will have extra service every 9 minutes until 2:00 am and every 15 minutes thereafter.
  • 510/310 Spadina will have extra service every 6 minutes until 1:30 am, every 8 minutes until 3:00 and every 12 minutes thereafter.
  • Gap and standby buses will be provided downtown and at other locations to provide extra service as needed.
  • Contract service outside of Toronto on 52 Lawrence West, 129 McCowan North and 68 Warden will be extended to 4:00 am. Service on 160 Bathurst North, 17 Birchmount and 102 Markham Rd will end at the usual time.