Tracking Metrolinx Project Costs

The Province of Ontario is not exactly transparent when it comes to reconciliation of announced project costs and actual spending, let along the changes that might occur along the way. A project, or group of projects, might be announced with a value in then-current dollars, and without necessarily including all future contract costs. There are various reasons behind this approach including:

  • The government does not want to tip its hand on the amount of money “on the table” to prospective bidders who might tailor their bid to the perceived level of funding.
  • Some contracts include future operating and maintenance costs as well as capital costs. In some case the announced cost does not include the O&M component, only the estimated capital portion.
  • Provincial projects are typically quoted in then-current dollars with future inflation to be added as it occurs, at least to the point where there is a contract in place which includes that provision.

This approach hides the likely as-spent costs and makes provincially run projects appear cheaper, at least in the short run.

This is fundamentally different from the way the City of Toronto tracks projects and how TTC requirements are reported. Specifically:

  • City project cost estimates include inflation to completion because this is factored into future funding requirements.
  • City projects do not bundle future operating costs with capital, but report them separately.

Note that cost estimates shown in the Infrastructure Ontario market reports do not necessarily match values shown by Metrolinx because IO shows these values on a different basis. Future operating and financing costs are no longer included in IO estimates so that a project’s value reflects only design and construction costs, a value that gives potential construction bidders a general size of the project’s scope.

Infrastructure Ontario notes on the November 2022 Market Update that we have modified the methodology used to calculate the estimated costs as presented on the chart. In May 2022, and for Market Updates prior to that, we used the Estimated Total Capital Costs. For the latest update, and going forward, the costs listed only include Design and Construction costs.

These changes were adopted after feedback from our construction industry partners found that including only design and construction costs provided them with a better sense of the scope of the project and would assist in determining if they wished to participate in the bidding process.

Email from Ian McConachie, Infrastructure Ontario, Manager, Media Relations & Communications, November 24, 2022.

This can be confusing with “bundled” projects such as the Ontario Line RSSOM contract which includes both provision/construction of vehicles and infrastructure, as well as future O&M costs. This is probably the reason, or a good chunk of it, for the very large increase in the RSSOM contract value between the initial estimate cited by IO and the contract award. However, the way these contracts are handled generally makes it impossible to know how much of the change is simply due to inflation in materials and labour costs, and how much is due to underestimates or scope changes.

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Infrastructure Ontario Procurement Update: November 2022

Infrastructure Ontario has issued an update on its various projects in procurement. I have been tracking the transit projects for some time, and the table linked below shows how they have evolved.

My last article on the subject was for the January 2022 update, but I skipped May because so little had changed. This article (and the table) reflect changes in the May and November bulletins.

Updated Nov 22/22 at 7:20 pm: The status tracking table has been updated to correct the date for the Ontario Line Pape Tunnel project.

IO Status Tracking November 2022

Some of the changes in this update are quite substantial.

Ontario Line

The North Civil, Stations and Tunnel contract previously included both the tunnel segment from Gerrard north to the Don River, the bridge over the river, and the elevated structure north to Eglinton. This has now been split into two separate contracts.

  • Elevated Guideway and Stations
  • Pape Tunnel and Underground Stations

Each of these projects is shown with an estimated cost of $1-2 billion, compared to $3 billion for the combined version.

In May 2022, the North Civil contract execution date was July-Sept 2024.

The Elevated Guideway and Stations contract is now shown in two stages with the Development Phase Agreement (DPA) in Jan-Mar 2024 and the Project Agreement (PA) in Jan-March 2025.

The Pape Tunnel and Underground Stations contract is now shown with a DPA of Jan-Mar 2024 and a PA in July-Sept 2026. [Corrected]

There is no indication of the effect these changes will have on the opening date.

The Rolling Stock, System Operations and Maintenance (RSSOM) contract was awarded in November 2022. In previous updates it was estimated at “>$2B” (greater than $2 billion), but was awarded at a value of $9 billion.

The South Civil, Stations and Tunnel contract was also awarded in November 2022, In previous updates it was estimated at “>$4B”, but was awarded at a value of $6 billion.

Line 2 (Scarborough) Subway Extension

The Stations, Railway and Systems contract project agreement (PA) date was previously cited as Jan-Mar 2024, but this has been changed to July-Sept 2024.

The tunnel contract was awarded in May 2021 and is already underway.

Line 1 (Yonge North) Subway Extension

The tunnel contract Request for Qualifications issue date has slipped from Jan-Mar 2022 in the January 2022 update to Jan-Mar 2023 in the November update. For some reason, the estimated cost has gone down from $2-4 billion to $1-2 billion. I have asked Infrastructure Ontario to clarify this.

The Request for Proposal issue date was supposed to be Jul-Sept 2022, but is now Apr-June 2023.

Contract execution has slipped from July-Sept 2023 to Apr-June 2024. It is not clear what effect this will have on the planned opening date.

Eglinton-Crosstown West Extension

This project has four components:

  • The tunnel contract for the segment from Renforth to Scarlett was awarded in May 2021.
  • The tunnel contract for the segment from Jane to Mount Dennis closed its RFP process in November 2022. Award is expected in Jan-Mar 2023.
  • The elevated structure between the two tunnels is in a separate contract now at the RFQ stage.
  • The Stations, Railway and System contract has not been issued yet.

Lines In Planning

Three lines are in the planning stage only with one added in the May 2022 update:

  • Line 4 (Sheppard East) Subway Extension
  • Hamilton LRT
  • Eglinton West Crosstown Airport Segment (new in May 2022)

GO Expansion

All of the contracts for the expansion program have now been awarded, and they will not appear in the IO updates.

Toronto Transit Funding and Development Charges

The real estate industry, their acolytes and even the affordable housing advocates went into meltdown when the 2022 update to the Development Charges landed at Toronto’s Executive Committee. This proposal was approved recently by City Council, but with a few carve outs such as exempting certain types of housing (up to 4 dwellings on a lot) from these charges.

The main trigger for the uproar was that the new DCs are much higher than those they replaced. With transit being the primary driver of this increase, it is worth understanding how DCs work and what the new charges will and won’t fund.

First, a comparison of the base data for the 2018 and 2022 reports. The tables below are in almost the same format making comparison easy.

The important column is on the right end of both charts “Total DC Eligible Costs for Recovery”. The total in 2018 was $9.3 billion while in 2022 it is $14.7 billion.

Yes, we are still paying for the Spadina Subway which gets its very own line in the table, and the Sheppard line shows up in the details under “Transit (Balance)”. Large increases lie in:

  • Transit, about $2 billion
  • Roads, about $1.2 billion
  • Housing Services, about $1 billion
  • Parks & Recreation, about $550 million

Some lines go up by a lot proportionately, but the dollar amount is comparatively low. For example, Pedestrian Infrastructure went from $15.7 million to $52.8 million, over triple, but the actual dollars pale by comparison with transit.

A major difference between 2018 and 2022 is the proportion of total costs recovered from subsidies and contributions from other parties.

In the 2018 DC calculation a grand total of $43.5 billion gross was reduced by $14.1 billion to a net value of $29.4 billion.

In the 2022 DC calculation, a grand total of $66.9 billion gross is reduced by $19.8 billion to a net value of $47.2 billion.

The increase in gross figures, 54 percent, is much higher than the increase in recoveries through subsidies and other revenue, 40 percent. This causes a disproportionate growth in the net of 61 percent.

Where Do Those Numbers Come From?

The background study that recommends new Development Charges starts with a list of every capital project in the City. The TTC has the biggest capital budget, even with some major projects taken over by the province, and it therefore generates the biggest part of the DC tithe.

For each project some costs are included and others are excluded. The headings on the charts above show the breakdown:

  • Net Project Cost: The cost of the project borne by the City after deducting provincial and federal subsidies and contributions by others (for example, York Region’s contribution to the Spadina Subway). (The gross costs for those who are interested are in the detailed tables.)
  • Replacement: Costs to replace existing infrastructure (such as new buses that replace old ones) are not eligible for DCs because this cost does not address growth, only worn out assets.
  • Benefit to Existing (BTE) Share: Demand that would rise if the improvements were already in place determines the portion of the benefit that is not due to new development.
  • DC Reserves: Some groups of projects did not manage to spend all of the money collected for them, and this sits in a carry over reserve offsetting new charges.
  • Other Development Related: Some costs are deferred to future rounds of DCs as reflecting the value of a project like a new subway line well beyond the five year cycle of DC updates.

The BTE share is calculated from existing and projected ridership (see below).

Looking at the 2022 chart above, of the $47.2 billion in net project costs, only $14.8 billion will be recovered in the current period from DCs. (The gross cost, by the way, is $66.9 billion.) This does not include provincial projects like the Ontario Line and Scarborough Subway which are no longer on the TTC’s books. It also does not include much of the Green Bus plan because that is mostly replacing existing buses, not adding to the fleet for ridership growth.

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Infrastructure Ontario January 2022 Update

Infrastructure Ontario has issued its quarterly update of projects that are in the planning and procurement stages. This affects several parts of the Ontario government, but my focus here is on transit projects.

The spreadsheet linked below tracks the past and current updates to show how the projects have evolved. There are two sections: one for active projects and one for projects with no currently reported info (typically for projects that are now in construction or completed, or that have been withdrawn).

Where a cell is coloured yellow, there is a change from the October 2021 report. Several cells are coloured light yellow. There is new text, but the only real change is to say “Jan-Mar” instead of “Winter”, and similarly for other seasons. This eliminates a point of confusion in past reports.

The substantial changes in this round are:

  • The Ontario Line North Civil, Tunnels and Stations contract dates have slipped by one quarter, and the contract type has changed from DBF (Design, Build, Finance) to TBD (To Be Determined). This covers the OL infrastructure work from East Harbour to Science Centre Station.
  • The Yonge North subway extension has been split into two projects: one for the tunnel and the other for the stations, rail and systems. The projected dates for the tunnel contract are unchanged, but for the stations project they are TBD.
  • A new line has been added for the Eglinton West LRT tunnel between Jane and Mount Dennis.
  • All of the GO expansion projects have slipped into 2022 for contract execution, but with dates early in the year. This implies an imminent flurry of announcements just in time for the coming election. These projects are running a few years behind their originally planned dates.
  • The contract type for the GO OnCorr project which includes future operation and maintenance of the system has changed from DBOM (Design, Build, Operate, Maintain) to “Progressive DBOM” which appears to provide earlier design input from prospective builders as well as a better (from the bidders’ point of view) allocation of risk between Metrolinx and the P3.
  • The Milton GO Station project has not been updated since October 2021. It is possible that this work is paused pending a resolution of issues between Metrolinx and CPR about all-day operation on this line.

Metrolinx Realigns Yonge North Subway Route

In an uncharacteristically co-operative move, Metrolinx has responded to local complaints about the planned route of the Richmond Hill subway extension under the Royal Orchard neighbourhood.

Originally, the Yonge North line would have run north under Yonge Street including Richmond Hill Station and a storage yard for trains to the north. The revised alignment takes the subway east to the GO corridor before it passes under Highway 407, and the subway runs on the surface north from there with two stations.

The TTC plans a new surface yard north of Richmond Hill, although it is not clear who will pay for this and whether it is still part of the YNSE budget. It is listed as part of TTC Capital and Real Estate plans, and this suggests that part of the extension’s cost (the need for more train storage) remains in the TTC’s lap even though Ontario is funding the subway itself.

The new alignment was announced on the Metrolinx blog on December 8, 2021. I wrote to Metrolinx that day asking for details of the planned vertical and horizontal alignments, and they replied on December 9:

We are preparing to release an update to the environmental assessment for the project in the new year, which will contain more detailed analysis on this specific route. This route will also be the basis for the analysis we complete for the Preliminary Design Business Case, which is also tracking for release later in 2022. 

Email from Fannie Sunshine, Metrolinx Advisor, Media & Issues Communications

The information surfaced (so to speak) not long afterward, certainly before an updated EA or Preliminary Design Business Case. Metrolinx obviously thought better of their initial withholding of the route’s details.

On December 15, Metrolinx CEO Phil Verster wrote a letter to the Royal Orchard community going into this change at some length, and even more was provided in an online consultation session on December 16 including its presentation deck.

Horizontal and Vertical Alignments

Here is an overview of the two routes.

The horizontal alignment has been changed by placing the east-west segment directly under Bay Thorn Drive to minimize the amount of tunnel that is directly under house. This requires that the curves at either end be tightened to make sharper turns from Yonge to Bay Thorn, and then from Bay Thorn into the GO corridor. The Bridge Station planned adjacent to the existing GO Langstaff Station is not affected.

Below are the original horizontal and vertical alignment in more detail. North is to the right.

The subway would initially swing west of Yonge Street and cross under the Don River. It would then travel northeast under the residential neighbourhood with a portal in what is now an industrial area south of Langstaff Road to a surface station under the highway.

The proposed alternative has both sharper curves and a deeper path. The tunnel under the Don River is almost twice as deep (31m vs 16m), and there is a long climb to just east of Royal Orchard Park where the vertical alignments meet up. The new alignment will require slower operation than originally planned because of the tighter curve radii.

If a Royal Orchard Station were ever added to the plan it would be considerably deeper in the new alignment than the old at a depth comparable to some of the proposed downtown stations on the Ontario Line.

The vertical alignments are compared in the drawing below.

Two alignments proposed by Transport Action Ontario were rejected because of various issues such as the effect on planned developments, the complexity of the portal and Bridge Station, and the extra cost of these schemes. Metrolinx states that its revised proposal keeps the project within its budget.

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TTC Major Projects Overview: September 2021

The agenda for the TTC Board’s meeting on September 15, 2021, contains three related reports about the status of capital projects:

Among the projects discussed are several that relate collectively to the Bloor-Danforth Modernization Project (Line 2) that was originally proposed when Andy Byford was CEO. It was always a report that was “coming soon” to the Board, but after Byford’s departure, references to it vanished without a trace. I will return to the collection of BD Modernization projects later in this article.

A major problem for decades with TTC capital planning was that many vital projects simply were not included in the project list, or were given dates so far in the future that they did not affect the 10-year spending projections. This produced the familiar “iceberg” in City capital planning where the bulk of needed work was invisible.

The problem with invisibility is that when debates about transit funding start, projects that are not flagged as important are not even on the table for discussion. New, high-profile projects like subway extensions appear to be “affordable”.

There is a danger that at some point governments will decide that the cupboard is bare, and spending on any new transit projects will have to wait for better financial times. This will be compounded by financing schemes, notably “public-private partnerships” where future operating costs are buried in overall project numbers. These costs will compete with subsidies for transit operations in general. Construction projects might be underway all over the city, but this activity could mask a future crisis.

Please, Sir, I Want Some More!

The current election campaign includes a call from Mayor Tory for added Federal transit funding including support for the Eglinton East and Waterfront East LRT lines, not to mention new vehicles of which the most important are a fleet for Line 2.

The Waterfront East project has bumbled along for years, and is now actually close to the point where Council will be presented with a preferred option and asked to fund more detailed design quite soon. This is an area that was going to be “Transit First”, although visitors might be forgiven for mistaking the 72 Pape bus as the kind of transit condo builders had in mind as they redeveloped lands from Yonge east to Parliament. Some developers have complained about the lack of transit, and the further east one goes, the greater a problem this becomes.

The Eglinton East extension to UTSC was part of a Scarborough transit plan that saw Council endorse a Line 2 extension with the clear understanding that money was available for the LRT line too. Generously speaking, that was wishful thinking at the time, and Eglinton East languishes as an unfunded project.

For many years, the TTC has know it would need a new fleet for Line 2 BD. The T1 trains on that line were delivered between 1995 and 2001, and their 30-year design lifespan will soon end. As of the 2021 version of the 15 year capital plan, the replacement trains were an “unfunded” project, and the project timetable stretched into the mid 2030s.

City budget pressures were accommodated a few years ago by deleting the T1 replacement project from capital plans. Instead the TTC proposed rebuilding these cars for an additional decade of service. This would stave off spending both on a new fleet and on a new carhouse, at the cost of assuming the trains would actually last that long. The TTC has found out the hard way just what the effect of keeping vehicles past their proper lifetime might be, and that is not a fate Toronto can afford on one of the two major subway lines. The T1 replacement project is back in the list, but there is no money to pay for it.

Finally, a signature John Tory project is SmartTrack which has dwindled to a handful of GO stations, some of which Metrolinx should be paying for, not the City (East Harbour is a prime example). If we did not have to keep the fiction of SmartTrack alive, money could have gone to other more pressing transit needs.

When politicians cry to the feds that they need more money, they should first contemplate the spending room they gave up by ignoring parts of the network and by putting most if not all of their financial nest-egg into politically driven works. It does not really matter if Ontario has taken over responsibility for projects like the Scarborough Subway because one way or another the federal contribution will not be available to fund other Toronto priorities. The same is true of the Eglinton West LRT subway.

Any national party could reasonably say “we already helped to pay for the projects you, Toronto, said were your priorities”, but now you want more? A related issue for any federal government is that funding schemes must be fitted to a national scale, and other cities might reasonably complain if Toronto gets special treatment.

A Long Project List

  • Bloor-Yonge Capacity Improvements
  • Line 5
    • Eglinton Crosstown LRT
    • Eglinton Crosstown West Extension
    • Eglinton Crosstown East East Extension
  • Line 6 Finch LRT
  • Line 1 Extension to Richmond Hill
  • Line 2 Extension to Sheppard/McCowan
  • Line 3 Ontario
  • Waterfront Transit Network
    • East LRT and station expansions
    • West LRT from Exhibition to Dufferin
  • BRT Projects
    • Durham-Scarborough
    • Dundas West
  • Line 4 Sheppard Extension
  • Transit Control Integration
  • Subway Fleet Replacement (T1) and Expansion
  • Fleet Storage
  • Automatic Train Control
  • Platform Doors
  • Easier Access Plan
  • Purchase of New Buses and Electrification
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The Long Arm of Metrolinx

Doug Ford wants his pet transit projects built now and will sweep away any opposition. His agency, Metrolinx, is more than happy to oblige if only to make itself useful.

There was a time when the Tories hated Metrolinx as a den of Liberal iniquity, but Phil Verster and the gang made themselves useful to their new masters with new plans. Ford returned the favour with legislation giving Metrolinx sweeping powers in the Building Transit Faster Act. In particular, Metrolinx has review powers over any proposed activity near a “transit corridor” (anything from building a new condo to extending a patio deck) lest this work interfere with their plans. They also have right of entry, among other things, to perform their works.

Metrolinx describes the various aspects of review in Building near a Metrolinx transit corridor

Operative language in the Act is extremely broad about “transit corridors”:

Designating transit corridor land

62 (1) The Lieutenant Governor in Council may, by order in council, designate land as transit corridor land if, in the opinion of the Lieutenant Governor in Council, it is or may be required for a priority transit project. 2020, c. 12, s. 62 (1).
Different designations for different purposes

(2) The Lieutenant Governor in Council may designate the land for some of the purposes of this Act and not others, and may later further designate the land for other purposes of this Act. 2020, c. 12, s. 62 (2)
Notice and registration

(3) Upon land being designated as transit corridor land, the Minister shall,

(a) make reasonable efforts to notify the owners and occupants of land that is at least partly either on transit corridor land or within 30 meters of transit corridor land of,

(i) the designation, and

(ii) this Act; and

(b) either,

(i) register a notice of designation under the Land Titles Act or Registry Act in respect of land described in clause (a), or

(ii) carry out the prescribed public notice process. 2020, c. 12, s. 62 (3); 2020, c. 35, Sched. 1, s. 4.

Building Transit Faster Act, S. 62,

Note that there is no requirement that land actually be anywhere near a transit project, merely that it “may be required for a priority transit project”.

“Resistance is futile” should be the Act’s subtitle.

Metrolinx has a diagram in Doing construction work near a Priority Transit Corridor which shows the bounds of their interest.

In various community meetings, the assumption has been that the “corridor” corresponds to the bounds of Metrolinx’ property, but that is not the case. A much wider swath has been defined in several corridors reaching well beyond the wildest imaginations of what might be affected lands. Needless to say this has not endeared Metrolinx to affected parties for “transparency”.

This applies to the “priority” corridors: Scarborough Subway Extension, Richmond Hill Extension, Eglinton West Extension and, of course, the Ontario Line.

In addition, there are constraints around GO Transit corridors, as well as separate Developer’s Guides for LRT projects in Toronto and on Hurontario. Note that these predate the election of the Ford government, and rather quaintly refer to the Eglinton West and Sheppard East LRT corridors. Although it is mentioned in the text, the Eglinton West Airport Extension is not shown on the map.

There is an interactive map page on which one can explore the bounds of areas where Metrolinx asserts various rights of review, control and entry. It is tedious, and one must wait for all of the map layers to load to get a complete picture. But fear not, gentle reader, I have done the work of wandering through the GTHA on this map and taking screenshots to show each line. I have attempted to maintain a consistent scale for the snapshots of the maps. All of them are clickable and will open a larger version in a new browser tab.

Readers should note that the areas of influence/control for Metrolinx corridors discussed here are separate from the effects of MTSAs (Major Transit Station Areas) on development around rapid transit and GO stations, a totally separate topic.

I will start with the Ontario Line because it is the most contentious, but Metrolinx territorial ambitions do not stop there.

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Billions Promised for Toronto Transit

May 11, 2021, brought a shower of money, or at least promises of money, onto plans for rapid transit in Toronto. The federal government announced a total of $10.7 billion to fund a 40 per cent share in the Ontario, Scarborough, Yonge North and Eglinton West projects.

May 12 brought another, albeit smaller, promise of $180 million each from the federal and provincial governments to fund expansion of the streetcar fleet on which Toronto already planned to spend $208 million.

On May 13, a funding announcement for the Hamilton LRT line is expected. This is a project the province had tried to kill.

Combined with their recently announced national transit funding program, the federal Liberals are making a real splash in the transit pond, at least for big-ticket capital projects.

Before we all head out for a socially distanced beer or champagne celebration, there are important caveats.

Why 40 Per Cent Isn’t Necessarily 40 Per Cent

When the federal government agrees to fund a project, the dollar value is (or more accurately will be) “as spent” dollars without any provision for inflation. If Queen’s Park says that the Ontario Line is going to cost $10.9 billion, that’s what the 40 per cent is calculated on. Add-ons or inflation will be entirely on Ontario’s dime, unless a future federal government takes pity.

The last time a subway project ran out of money due to a hard cap on the “commitment” was with the Sheppard Subway’s terminus at Don Mills. Ironically, it was a conservative provincial Premier, Mike Harris, who capped spending on that project, and Toronto did not have enough money to continue east to Victoria Park, much less beyond to Scarborough Town Centre.

Cost overruns on the Vaughan subway extension were shared by Toronto and York Region.

The announced costs for the four Ontario key projects in Toronto are:

  • Ontario Line: $10.9 billion
  • Yonge North: $5.6 billion
  • Scarborough: $5.5 billion
  • Eglinton West: $4.7 billion
  • Total: $26.8 billion

“The federal government is contributing 40% of each project, up to a total of $10.4 billion” according to Infrastructure Canada’s announcement. This could give leeway for allocations to move between projects, but sets a total on the group.

This puts all four projects in a box, and will make adding costs to them very difficult because there will be no matching federal dollars. The dubious nature of the spending, notably on the Eglinton West underground alignment, appears to be of little concern to the feds who do not want to be seen as interfering in local decisions.

That stance takes an odd turn when we see that there are conditions on this support, although I suspect that many are window dressing.

The federal government understands that every taxpayer dollar invested in public transit must have multiple benefits including creating good jobs, building more equitable and inclusive communities, and tackling climate change. That is why the federal government’s funding is dependent on satisfying conditions including demonstrating how the investments will drive down emissions and build resilience, substantive environmental reviews, ensuring affordable housing along the line, incorporating accessibility, mitigating local concerns, maximizing benefits for communities including through Community Benefit Agreements, and meeting employment thresholds for underrepresented communities including Black, Indigenous and people of colour, and women.

Just what is meant by “substantive environmental reviews” and “mitigating local concerns” is anyone’s guess especially in light of Canada’s rejection [22 MB PDF] of a requested environmental review of the Ontario Line. In brief, the feds hold that there are provincial and municipal processes in place to address concerns, and moreover that there are few areas of federal jurisdiction touched by the Ontario Line.

Metrolinx projects already provide accessibility and include Community Benefit Agreements. These “requirements” simply reinforce what they are already doing.

The Ontario Line is under fire in at least two locations, Riverside and Thorncliffe Park, because of intrusions on the community. In Riverside, the debate is over underground vs at grade construction, as well as the proposed alignment, and Metrolinx’ possible misrepresentation of the combined GO Transit and Ontario Line corridor from the Don River to Gerrard. In Thorncliffe Park, the proposed maintenance yard requires the expropriation of a group of offices and shops that form a community centre. A Mosque is also affected, although it plans to move to another building nearby.

Changing the design in either of these areas will almost certainly raise costs, and the project cap will be used to counter any such proposals. Oddly enough, this was not an issue on Eglinton West which is going undergound at a cost of nearly $2 billion so that the good people of Etobicoke do not have to see streetcars in their neighbourhood. That decision is now baked into the project cost, and Metrolinx is on the verge of awarding the tunneling contract.

The planned alignment of the Yonge North extension under the Royal Orchard neighbourhood is also under fire, although Metrolinx claims that the line will be so deep it will have no effect on the residential community above. That is an intriguing claim given that the tunnel portal is in the GO rail corridor and the trains will not leap instantly from deep underground to the surface.

The Scarborough decision has long been a fait accompli, but the current announcement commits the feds to a 40 per cent share of the expanded project.

More Streetcars for Toronto

In 2020, the TTC proposed that the streetcar fleet be expanded by 60 cars, and the City signed on to fund 13 of these. The remaining 47 are now funded by contributions from the other governments, a move that will keep Thunder Bay happy with a vehicle order to keep the now-Alstom (formerly Bombardier) plant going. Some work will also go to the Alstom plant in La Pocatière, Québec.

The subway extensions will also need new cars, but unlike the streetcar fleet, there is no open contract to simply be extended. It will be interesting to see how additional cars for Line 1 and a new fleet for Line 2 will be tendered, and what political machinations will bear on the vendor selection.

The expanded streetcar fleet will not all fit in existing facilities at Leslie, Russell and Roncesvalles. The TTC plans to renovate Harvey shops at Hillcrest as a small carhouse serving (at least) the 512 St. Clair route. The existing streetcar maintenance facilities at Hillcrest were designed in the 1920s for standard sized streetcars and could only host a few Flexitys at a time during the early testing and acceptance period.

Now that the full order for more cars has funding, the Hillcrest renovations can proceed.

Left at the Altar

Important projects which might benefit from federal funding are still sitting in limbo including:

  • Eglinton East LRT to UTSC and Malvern
  • Waterfront East LRT to Broadview
  • Line 2 Bloor-Danforth Automatic Train Control and fleet renewal
  • New Line 2 maintenance facility west of Kipling Station (Obico yard property)

There is a separate federal program to fund transit, but that is already partly earmarked for electrification of the bus fleet and garage upgrades. How much will be left for other projects remains to be seen.

With all of this new money for Toronto transit, the TTC needs to update its Capital Plan to reflect the current status of project funding and the remaining budget shortfall. We might have billions worth of promises, and even a few celebratory bottles to drink, but there is a long way to go thanks to decades of deferred investment.

Infrastructure Ontario’s April 2021 Update

Infrastructure Ontario issues quarterly updates about the projects it is managing for P3 procurement, and I have been tracking the transportation items on this site. Their April 2021 Market Update came out on April 8, but I have been waiting for clarification of some issues before posting here.

Here is a spreadsheet tracking changes in project status since these updates began.

Items highlighted in yellow have changed since the last update.

Note that this report only covers the procurement portions of Metrolinx projects that are undertaken through Infrastructure Ontario. Contracts that are in construction, or are directly tendered and managed through Metrolinx outside of the P3 model, do not appear here.

Ontario Line, Line 1 North Extension (Richmond Hill Subway), Line 4 Sheppard East Subway

There are no changes to these projects in this update.

Line 2 East Extension (Scarborough Subway)

As previously announced, the tunneling contract gets underway this spring. The contract for the remainder of the project (stations etc.) enters the Request for Qualifications (RFQ) stage this spring/summer, but contract execution is not expected until spring 2023.

Note that vehicles for the extension will be procured as part of a TTC order for fleet expansion and renewal that does not show up in the IO updates.

Line 5 Eglinton West Extension

As previously announced, the tunneling contract gets underway this spring. There is no date yet for the remainder of the project to enter the RFQ stage.

GO Expansion Projects

Metrolinx came up with a new term for procurement, the “alliance” model where more responsibility for the project is shifted back onto Metrolinx as owner rather than expecting bidders to take on a substantial project risk. This showed up in the Union Station platform expansion project early in 2020.

In this round of updates, things appear to have gone a step further. Three projects (Lake Shore East and West Corridors, and the Milton Corridor) are reduced in dollar value. I asked Infrastructure Ontario about this, and they replied:

Since the previous Market Update (Dec 2020), there have been some changes in scope of work for these projects. Items which have been descoped may be carried out by Metrolinx in the future under separate, traditionally-procured contracts. The intent is to better manage risks and costs with respect to the GO Expansion program.

As these projects remain in procurement, we will provide further updates this spring/summer.

Email from Ian McConachie, IO Media Relations, April 9, 2021

Specific changes by corridor:

CorridorChange (per Infrastructure Ontario)Previous CostUpdated Cost
Lakeshore WestDescoping of Exhibition Station in-corridor enhancement works and track improvements, Clarkson Station and Bronte Station in-corridor enhancement works.$500M-$1B$200-500M
Lakeshore East-Central Descoping of Scarboro Golf Club Works and 2.5km of grading (previously part of LSE-E) and deferral of Highland Creek Expansion $200-499M$100-200M
Milton Descoping of Station Operations West Facility and replacing the pedestrian tunnel with a pedestrian bridge. $100-199M< $100M

The project formerly called “Milton Corridor” is now called “Milton Station”.

A separate project line, Lakeshore East-West Corridor, dropped off of the IO Update in mid-2020. The project was transferred to Metrolinx for delivery as a non-P3 contract.

The comment about “better manage risks and costs” is telling here, and it implies that the P3 model has not worked out as favourably as hoped for all of Metrolinx’ work. In some cases it is simpler and cheaper to just go out and buy/build something yourself than to set up elaborate machinery for others to do this for you.

Notably the $10B GO “ON-Corr” project which entails a complete restructuring of GO including future operation, maintenance and electrification has not changed status in a year. With GO’s ridership uncertain in the near term, projecting just what Metrolinx might ask a P3 to undertake, let alone contracting for it, is like peering into a very cloudy crystal ball.

Metrolinx Trims Yonge North Subway (Updated)

Updated March 24, 2021 at 10:00 am: In response to feedback about my remarks regarding the area around the “Bridge” station on the new Metrolinx alignment, I have added a section at the and reviewing the Langstaff Gateway Plan.

On March 18, 2021, Metrolinx released their Initial Business Case for the Yonge North Subway Extension (YNSE) to Richmond Hill together with a refinement, a Supplementary Analysis of their preferred option. There is also a short presentation deck on this subject on the agenda for the Metrolinx Board Meeting of March 25, 2021.

The IBC was originally completed in mid-2020 but it has not been public until now. Some aspects of it were reported at the time in the Toronto Star. (The report appears in the meeting agenda for September 10, 2020 in the private session.)

Updated March 21, 2021 at 9:20 am: A reference page linking to YNSE reports has been added for those interested in the proposal’s history.

The project chronology shows how long this extension has been in various planning stages. The Metrolinx Benefits Case Analysis was published over a decade ago in 2009, and it was updated in 2013. Options studied at the time had more to do with staging than with alignment choices:

  • Option 1: A six stop extension from Finch Station to Richmond Hill Centre with intermediate stations at Cummer, Steeles, Clark, Royal Orchard and Langstaff.
  • Option 2: A phased extension first to Steeles including Cummer Station, with the segment north to Richmond Hill to follow.
  • Option 2A: In addition to the shorter subway extension, service on the GO Richmond Hill line would be improved to every 20 minutes in the peak period.

Regional growth plans tilted the preference to Option 1 as a way to support a node in Richmond Hill.

The fundamental problem which the IBC and its supplement seek to address is that the cost of the extension had grown to $9 billion in 2019 from an original estimate in the 2007 approved plan of less than $3 billion. The project was taken over by the province as part of its rapid transit upload after preliminary design and engineering by TTC and YRRTC (York Region’s rapid transit agency) showed a substantial increase in the cost.

Part, but certainly not all, of that change is explained by inflation, and one must wonder whether the original estimate was low-balled to gain approval for a project with political appeal in York Region. Another problem is that “cost” is reported in different ways by municipal and provincial planners, and it is not clear that all of the increase is on an apples-to-apples comparative basis.

In the June 2020 IBC, Metrolinx evaluated three options as shown on the map below.

  • Option 1 (turquoise) is the original alignment that follows Yonge Street to a station at Langstaff, and then swings east to a terminal at Richmond Hill Centre.
  • Option 2 (blue) includes a new stop “Bridge-West” at Highway 407 and a station at High Tech Road.
  • Option 3 (pink) turns off of Yonge at Kirk Drive, cuts under the Holy Cross Cemetery and follows the CN Bala Subdivision with stations at “Bridge-Centre” and an High Tech Road. This was the preferred alignment in the IBC.

Here is a closer view of the north end of the line showing all three options.

Option 3 shown in pink above is the preferred one for reasons I will describe below, but there were concerns that it cut under the corner of Holy Cross Cemetery. This led to the alignment proposed in the Supplementary Analysis.

At the Don River crossing, the revised alignment swings west and then turns east following a route to the CN Bala Subdivision (GO’s Richmond Hill corridor) further south than in the original Option 3 shown above. The subway runs under the CN corridor where it passes under the cemetery, and then surfaces to run alongside the railway tracks.

Another major change in the design is that some stations have vanished, although depending on how the budget works out, they could gain a reprieve. The affected stops are Cummer/Drewry, Clark and Royal Orchard.

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