SmartTrack’s Next Steps

After a day-long debate, Toronto Council has approved continuing along the path set by Mayor John Tory to study and possibly to build the transit lines branded as “SmartTrack”. Although this proposal is now much different from the scheme that was Tory’s campaign centrepiece, the idea of SmartTrack continues to receive broad support among Councillors.

The debate covered a lot of ground with two related threads: how would Toronto actually pay for SmartTrack, and how much of the larger transit network many hope to see will actually be built.

Council has yet to consider a long-term financing strategy and possible “revenue tools” (new taxes in plain English) to deal with the combined capital and operating budget demands of the would-be network. Although there was much talk of the lost decades of underinvestment in transit, Council has yet to show that it really is ready to spend Toronto dollars (as opposed to  money from any other source) at the level that will be needed. City staff will present a report on financing options in a few weeks, and the reaction to this will be telling.

What Did Council Approve?

Below is a consolidation of the staff recommendations and amendments adopted by Council arranged to keep related issues together. For full information, please refer to the detailed record of the item.

Note that in all cases where approvals relate to “SmartTrack” this includes both the six new GO stations and the Eglinton West LRT extension unless otherwise noted.

Process:

  • (1) Adopt the “Summary Term Sheet and Stage Gate Process” which includes details of the many parts of the proposed agreements and (2) authorize the City Manager to negotiate and execute agreements with the province to implement this.
  • (3) Request staff to report at Stage Gate 5 for final approval of full funding for SmartTrack. A report on more definitive costing and the financing funding strategy has been requested for an earlier step in this process. See (18) below.
  • (4) Approve the confidential staff recommendation regarding settlement of the Georgetown corridor funding issue. See also recommendation 15.

Technical and Planning:

  • (5) Proceed with planning and design for the six SmartTrack GO stations, report back to Council, and launch the Transit Project Assessment Process (TPAP). This was amended by two further requests that the work include improvement of:
    • the placement and access points of the Liberty Village Smart Track Station to maximize connectivity, and
    • pedestrian connections to the existing Exhibition Place Station for both Liberty Village and Exhibition Place.
  • (6) Confirmation of city support for transit supportive land use plans for areas around the SmartTrack and GO RER stations. Amendments related to this included:
    • Amending the development strategy for public lands at stations, including air rights, to create ongoing operating revenue streams from development resulting from that strategy.
    • Directing the Chief Planner to report in January 2017 with options to develop a comprehensive plan for managing development and growth related to transit expansion.
    • Confirming that the Official Plan as well as other plans, bylaws and policies, are not changed by this decision on this item. The intent of this is to forestall any claim for additional density by would-be developers in advance of the passing of updated plans for area affected by transit projects.
  • (7) Proceed with planning and analysis of the Eglinton West LRT extension up to Stage Gate 3 including finalization of stops and grade separations, provide a scope for this project up to the Renforth Gateway, and provide a class 4/5 estimate of the project’s cost, and conduct the TPAP. Note that this is a more restrictive approval seeking more detail than in the case of the ST/GO stations in (5) above.
  • (8) Request a financial contribution from Mississauga and Pearson Airport to the outside-416 portion of the Eglinton West extension.
  • (9) Ensure that the proposed new station design at St. Clair and Keele includes improved road operations and is co-ordinated with the St. Clair West Transportation Master Plan. A significant part of this would be the widening of the underpass east of Keele Street to remove the existing choke point.
  • (10) Request Metrolinx to consider grade separations at Progress and at Danforth on the Stouffville corridor, with the proviso that any option closing existing roads would not be considered. This was amended at Council to add requests for grade separations at Passmore, McNicoll, Huntingwood and Havendale.

At Council, there was an attempt to have items (7) and (8) deferred until after the Waterfront Transit Reset report is considered by Council in 2Q17, effectively putting both of the proposed Etobicoke LRT proposals on the same approval timeframe. The deferral motions did not pass.

Finance:

  • (13) Approve $71m for preliminary planning and design on SmartTrack (the 6 new stations plus the Eglinton West LRT)
  • (14) Include $2b in net capital requirements for SmartTrack (stations plus LRT) in the city’s 10 year capital projections.
  • (15) Approve $95m for settlement of the Georgetown South issue with the province.
  • (16) Approve $62m for Toronto’s share of 5 grade separation projects.
  • (17) Approve $60m for GO capital expansion (2 stations at Bloor/Lansdowne and at Spadina on the Barrie corridor). This was amended to ask that staff work with Metrolinx on including the study and design of the Railpath along the Barrie line between Bloor and Dundas West.
  • (18) Request staff to develop the financing and funding strategy, and report back when a class 3 cost estimate is available for a definitive Council commitment to the SmartTrack project.

Two additional amendments ask for:

  • strong TTC in developing procurement options, and
  • negotiations with the province for resumption of operating subsidies.

Commitment to the full cost of the new stations and the Eglinton West LRT will not occur until much more detailed cost estimates come back to Council over the next year (or possibly more). In the event that Council opts not to proceed with any component for which Metrolinx has spent money on development prior to the point of final approval, Council will be responsible to reimburse Metrolinx for its costs.

With respect to the additional grade separation studies requested for the Stouffville line, it is unclear how work on this would be funded, although one might expect Metrolinx to respond with a request for some up-front payment and guaranteed participation in funding if any of these goes ahead.

The Status of Other Major Transit Proposals and Projects

Planning and building any part of SmartTrack should be seen in the wider context of other transit needs and schemes, let alone wider demands on the city’s operating and capital budgets.

  • The Spadina Subway extension to Vaughan (TYSSE) is scheduled to open at the end of 2017, although startup costs will affect the TTC’s operating budget before any passengers are carried. For 2018, the current estimate of the annual operating cost to Toronto is $30 million including whatever marginal fare revenue the extension will bring in. This line’s capital was covered roughly one third by each level of government, with about 60% of the municipal share falling to Toronto based on the proportion of the route within its boundaries.
  • The Scarborough Subway from Kennedy Station to Scarborough Town Centre remains the subject of much debate. Although its capital cost is already covered by money from all three levels of government, the proportions are unequal, and any increase to the overall Scarborough transit scheme will be on the city’s tab. The extension will be part of the TTC’s operation along with the net new operating cost, an unknown amount at this time. A critical issue will be whether the cost estimate overall will hold or increase before final project approval, and how this will affect what actually gets built.
  • The Eglinton Crosstown LRT is now under construction by Metrolinx between Kennedy Station and Mount Dennis (at Weston Road) with a planned 2021 opening, subject to issues about vehicle delivery. This project’s capital cost is funded totally by Ontario, but operating costs will be billed back to Toronto at an anticipated annual net amount of about $40 million in then-current dollars.
  • The Eglinton East LRT extension from Kennedy Station to University of Toronto Scarborough College is part of the Scarborough package approved with much fanfare earlier in 2016. The capital cost is part of the same “pot” as the Scarborough Subway extension, but how much will actually be available after that extension’s scope and price are firmed up remains to be seen. This will be an early test for Council. Does it really believe in a “network”, are councillors willing to accept the extra cost as part of building our city, or is the argument still dominated by an outlook claiming that tax restraint must take precedence. An updated Scarborough report is expected in coming months.
  • The Eglinton West LRT extension from Mount Dennis to the Renforth Gateway (at the western city boundary) and then north to Pearson Airport is part of the SmartTrack package. Funding for the line is still uncertain because city plans depend on contributions from Ottawa (likely as part of the Liberal’s infrastructure program), from Mississauga and the airport authority (GTAA) for the portion outside of Toronto. This extension is now the more expensive portion of “SmartTrack”, and ironically appears to survive mainly because of that branding despite opposition from some Etobicoke councillors.
  • Like the central part of the Crosstown, the two extensions would be operated at the city’s expense even though the lines would be owned by Metrolinx.
  • The Metrolinx GO RER program is provincially funded, although the matter of the municipal contribution to GO’s capital remains a sore point between Queen’s Park and the GTHA. Toronto will pay for six new stations as part of SmartTrack and will also contribute to two stations on the Barrie corridor (Bloor/Lansdowne and Spadina). GO RER’s net operating costs will all be a provincial responsibility, and the amount of service that will actually operate depends on future subsidy levels for Metrolinx. Similarly, the full build-out of RER fleets, electrification and service levels will depend on future provincial budget decisions.
  • The Relief Line remains under study thanks to a provincial infusion of $150 million, and both city and TTC staff emphasize that it is a necessary part of Toronto’s future network. While some relief to Yonge line crowding will come from GO RER and the new SmartTrack stations, this will only blunt but not stop the growth in subway demand. A big problem, as readers have discussed here at length, is the project’s scope and the perception that it is intended for a comparatively small part of the system’s ridership, downtowners. The further north the eastern RL branch goes beyond Danforth (to Eglinton or even to Sheppard), the more it performs a service for the city as a whole, but this benefit is routinely underplayed relative to the cost of a new north-south subway. Major capital spending for the Relief Line would not begin until the mid 2020s, but this will still compete with other city priorities.
  • Waterfront LRT to the west is popular with councillors from southern Etobicoke and has begun to overshadow the shorter eastern LRT line in debates. Both parts of a future waterfront network are under review with the “Reset” study now in progress that has only progressed to the point of developing a moderately long list of options. The strategy appears to be to keep this list as open as possible as long as possible so that political fights over the details are held off at least until there is a better understanding of what will work and what the options might cost. Like the RL, waterfront transit has suffered from being perceived as a “downtown” project despite the scale of development it will have to serve.
  • The Finch West LRT is still on the books, and Metrolinx hopes to begin work in this in 2017. There remains some opposition to the line, and it will be a test of the Wynne government’s resolve to see whether actual work is pushed back beyond the 2018 election.
  • The Sheppard East LRT is also still on the books, although it is no secret that many politicians at City Hall and Queen’s Park would love to see this sacrificed for a Sheppard Subway extension. The LRT would be a provincial project with some federal money. There has not yet been any cost sharing commitment to a subway replacement from any government in part because the cost is unknown. It will almost certainly be greater than the LRT line, and like the extension north from Kennedy, will serve a considerably smaller part of Scarborough than the LRT would have. Any decision on this point is likely to fall to the next provincial government, although it will likely be part of the electioneering to reinforce the “subway champion” brand by all parties if this scheme gains traction at Council.
  • The Richmond Hill extension of the Yonge Subway is a project long-sought by York Region, but the idea is tangled up with network relief from GO RER, the Relief Line and other capacity improvements still pending for the existing subway. Some of these, such as added operating cost for more trains on Line 1 YUS, and capital cost for station capacity impeovements, will fall to Toronto. Whether any of the funding pools now thought to be available for transit projects generally will still be available by the time a decision on Richmond Hill faces council, indeed whether this decision will even be in Toronto Council’s hands, are questions for a future beyond any of the existing governments.
  • Not to be forgotten for its demand on city funding is the surface transit system including the bus and streetcar network. While billions in new projects preoccupy debates, a long-standing problem faces Toronto with population growth, much of it “downtown”, that has not been matched by additional transit. Indeed, transit service today is little changed from twenty years ago largely because the TTC streetcar fleet sits roughly at late 1990s levels, and traffic congestion has been responsible for service cuts to stretch the available fleet. Current operating budget plans at the TTC foresee a major shortfall in 2017 that appears unlikely to be addressed by a supposedly pro-transit council and mayor, and this will almost certainly continue into the 2018 election year. On the capital side, the TTC requires an additional batch of streetcars beyond the 204 now on order from Bombardier. Both the financing and supply of this fleet expansion are on shaky ground. As for the bus fleet, TTC management seems more preoccupied with simply replacing its existing fleet of hybrid buses with diesels rather than actually expanding the level of bus service to Toronto.

In this context, the SmartTrack decision is only a small part, and Council has yet to be presented with a comprehensive view of the effect building a real transit network, rather than a few lines, will have on its budget and future financing requirements.

 

About That Metrolinx Generator in Mount Dennis (Update 2)

Over some time there have been conflicting stories about the purpose of a backup power generation unit at the Mount Dennis maintenance facility on the Crosstown project. I have heard some rather wild statements from folks at Metrolinx that suggests they might be making things up based overheard water cooler chatter (not that offices tend to have water coolers these days, but it’s the idea that counts).

After the media scrum at last week’s board meeting produced more confusion, I sent in a set of questions for clarification. The boffins at Metrolinx are supposedly working on it. Yes, you. I know you read this site, so in case the memo hasn’t reached your desk, you might want to answer the following:

Regarding the backup generator at Mount Dennis:

I have heard stories both that its purpose is for on site emergency power and for traction power to the main line.

Another variant is that less than full power would be provided in an emergency at least to clear trains from tunnels.

It does not make sense to have one huge generator capable of providing traction power to the entire route. At a minimum, a parallel distribution system would be needed to connect to the standard substation-based feeds along the line.

Also, emergency power requirements are different for traction (750 VDC) and station power (110/220 VAC). Do you really expect me to believe you plan a totally independent power distribution network from Hydro?

Another cockeyed variant is to use the generator to offset peak power demands.

Please provide a detailed technical description of what this generator is expected to power and under what circumstances so that there is a single explanation of this project from Metrolinx.

I await a reply from Metrolinx that is coherent and credible.

Updated September 20, 2016 at 10:40 pm:

Metrolinx has provided the following information about their power generation proposal for Mount Dennis:

Metrolinx is working with Toronto Hydro to explore an alternative to the proposed natural gas powered back up facility near Mount Dennis Station.   An alternative would have to provide the same basic functional requirements as the proposed natural gas powered facility.  It would also be subject to any necessary approvals from the Province of Ontario and the City of Toronto. More info is coming in the near future I understand.

The gas-powered facility was proposed in order to provide the ability to maintain service when the power goes out and improve transit resilience, lower the cost of power by eliminating any contribution to peak power demand from the new system, and ensuring it does not contribute to the need for more transmission or generation infrastructure.

The proposal included:

  • a traditional Toronto Hydro electrical grid connection at two locations; and,
  • building an 18 Megawatt backup power facility – six generators – (with capacity to heat the MSF office spaces) in the northwest corner of the MSF site, known as the backup power facility.

CTS [the consortium building the Crosstown line] developed this proposal based on our RFP requirements whereby proponents were asked to design a system to achieve the power needs of the project, which included redundancy. The Energy Matters regime of the Project Agreement drove proponents to make the system as energy efficient as possible and to the extent possible limit peaks during the key hours of peak that challenge the grid. CTS is asked to forecast the following power supply needs for the system and commit to them for the 30-year Maintenance Period,

  • a) Discrete Power Use: the total amount of power needed;
  • b) Transmission Peak Use: the peak amount of power needed at any point in time (i.e. during rush hour); and
  • c) Global Adjustment Peak Use: the peak amount of power needed during the time when Toronto Hydro’s network is a peak capacity.

Each of the above peaks were assigned a $/MW or $/MW-h to determine the overall power costs of the project (that was unique to that proponent’s proposal). This cost was part of the proponents’ bid for the purposes of the financial evaluation. This regime exists to make bidders responsible for energy efficiency of their LRT system because Metrolinx will pay the energy bills for the 30 year Maintenance Period.

The proposal from CTS to responded with a fully capable 18MW power facility with the ability to completely eliminate contribution to peak period on the grid. As a result of the proposal, CTS was able to reduce their evaluation costs for the Global Adjustment Peak Use and their Transmission Peak Use.

The final power supply scenario provided for both a traditional connection to the Toronto Hydro network as well as the self-generating power facility. CTS’ obligations were to provide the power supply and HMQE’s obligations were to determine which power supply to use, i.e., either the backup power facility or the connection to the Toronto Hydro network. There are rules associated with changing of the power supply. CTS also committed to making one of the power generation units a co-generating unit (produces power and captures heat by-product). [Email from Anne Marie Aikins, Senior Manager, Media Relations, Communications & Public Affairs, Metrolinx]

This description begs a few questions:

  • If Toronto Hydro’s capacity is strained, how are we powering new facilities such as the TYSSE and proposed SSE? Does the TTC have to design for an alternative, power self-generation and transmission capability?
  • How does this claim square with statements made during the GO Transit electrification study that at the provincial level, spare power for RER was not an issue at all?
  • What additional capacity will be required to power the extensions to Pearson Airport and UTSC, and can this reasonably be sited at one location, Mount Dennis?

Updated September 22, 2016 at 8:20 am:

The acronym used above “HMQE” refers to “Her Majesty the Queen’s Entity”, a short form for the combined Metrolinx and Infrastructure Ontario Entity.

The primary purpose of the generator is supposedly for “Bulk Power Disruptions”, that is to say an outage from the provincial supplier, Hydro One. There have only been three such outages since (and including) the major blackout of August 2003. However, other explanations for the generation capacity emerge from time to time.

Crosslinx Transit Solutions (Crosslinks), the winning proponent, proposed an 18MW (six 3 MW engines) natural gas fired power plant to achieve 40% reduction in life-cycle electricity costs, as well as, provide backup power to protect against Hydro One electricity transmission failure (e.g. June 2013 flood at Hydro One Manby Station left 300,000 people without power for days in west Toronto and east Mississauga). Back-up power is required to ensure that LRT trains can be removed from tunnels, and provide emergency ventilation in the event of a power failure. [From the city’s report Update on Metrolinx Proposed Power Plant for Eglinton LRT, p. 3]

In other words the primary function is to reduce electricity costs rather than simply having backup power. There is no business case to show how generating their own electricity would be cheaper for this line than direct purchase from a utility.

Toronto Hydro requires additional distribution capacity for the Crosstown line and will have implemented this by the time it opens. However, this will not, according to Metrolinx, be in place soon enough to allow early testing. That statement does not explain just how much power testing would require as opposed to full operation of the line, nor whether Toronto Hydro is already capable of providing power for the testing phase.

The City’s report also speaks of heat recovery for use on site and by nearby developments. This would only make sense if the generators were operating fairly regularly, not as occasional backup units.

GO Transit’s RER power feeds will come directly from Hydro One and they will not be constrained by local transmission capacity.

Metrolinx has yet to comment on power for the Crosstown extensions, but they have confirmed that the Finch LRT will not include a comparable power facility in its design.

This entire scheme is looking more and more like a noble idea gone wrong. The specifications for this facility are in a section of the Crosslink project contract (“Output Specifications”, Schedule 15) that is completely redacted from the public version. It is intriguing that the contract contemplates the possibility that the cogeneration facility might be dropped from the project (section 20.18).

TTC Service Changes Effective Sunday, September 4, 2016 (Updated)

Updated August 15, 2016: The detailed table of service changes has been added to this article.

September 2016 will see a return to the “winter” schedules on most TTC routes. Despite talk of service cuts in the budget process, the new schedules include some improvements to correct for operational problems on a few routes, and to better handle existing demand. The scheduled mileage for September is actually above the budget level due to greater than anticipated requirements for diversions and extra vehicles to deal with construction projects.

2016.09.04 Service Changes

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Travel Times on Queens Quay West

At a recent TTC Board meeting, the question arose of just how well Queens Quay operated as a transit street and how long it took the streetcars to navigate through the new setup.

Staff claimed that they had added six minutes to the schedule to compensate for problems, but this really didn’t give the full picture. Not to miss a chance to carp, Councillor Minnan-Wong latched onto this number and worked it into the debate at Council when the “Waterfront Reset” report was up for debate. The report passed without amendment, but the seeds of disinformation have been planted.

In the interest of clarity and accuracy,  rare commodities at City Hall, here is a review of what has actually been happening.

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Council Approves Tory Transit Plan, Attempts Pet Project Revivals

Toronto Council has approved the transit plan for Toronto featuring Mayor John Tory’s SmartTrack line and the Scarborough Subway after a long debate on July 14, 2016. Notwithstanding severe problems with financial pressures and the blind faith needed to expect that the entire package can actually be funded, Council added a few pet projects that never quite fade from view thanks to the efforts of individual members.

LRT proposals for Eglinton East and West survived the vote largely because they are part of larger packages – SmartTrack in the west, and the Scarborough Subway Extension in the east. The subway debate has so polarized camps that “LRT” is synonymous with third class transit simply because it was the heart of the “non subway” option. Without the bitterness of the SSE that required subway advocates to paint LRT in the worst possible light, its potential role in Toronto’s future network might not have been so poisoned while other cities embrace this mode.

Staff recommendations in the report were amended in some respects, and a few new clauses were added, notably one asking for City staff to pursue a co-fare arrangement with GO Transit.

The Waterfront Transit Reset report is a separate agenda item and, at the time of writing, Council has not yet dealt with it.

The Finch West and Eglinton Crosstown LRT projects are under Metrolinx, and they are already underway to varying degrees.

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Toronto’s Network Plan 2031: Part VI, Crosstown East LRT Extension

This article deals with the report Eglinton East LRT Preliminary Options Analysis which is before Toronto’s Executive Committee on June 28. It is part of a large package of transit proposals that have been discussed in several previous article in this series.

The Crosstown East, as it is now known, was originally the Transit City Scarborough-Malvern LRT line. It had fallen off of the map as part of the Transit City cutbacks imposed by Queen’s Park, but was resurrected early in 2016 as part of the “optimized” Scarborough network of a one-stop subway to STC from Kennedy, SmartTrack service in the GO Stouffville corridor, and the LRT to University of Toronto’s Scarborough Campus (UTSC).

With the recent announcement that the subway proposal will soak up more of the funding already earmarked for Scarborough than originally thought, the LRT line could be in jeopardy again. This would be quite ironic given that it was used as a sweetener to bring some members of Council onside with the one-stop subway plan. Indeed the LRT provides the majority of the benefit in the “optimized” scheme through its many stops close to residents who otherwise would not be on a rapid transit corridor. The package would not look as good for many of Toronto’s planning goals if the LRT line were omitted, but by bundling the stats, subway advocates can make the subway appear better than it would be on its own.

Of the reports before Council, this is the simplest of the proposals in that the options to be reviewed are quite similar differing only in whether the line would end at UTSC or continue north to Sheppard. The latter option dates from a time when it would connect to the Sheppard East LRT and a proposed carhouse at Conlins Road. Such a connection remains possible if Queen’s Park ever overcomes its aversion to LRT on Sheppard (or more accurately, its aversion to telling the Scarborough Liberal Caucus it will never see a subway extension there).

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Toronto’s Network Plan 2031: Part V, Crosstown West LRT Extension

This article continues my review of the reports going to Toronto Executive on June 28. I will pick up the thread again just before the whole things winds up at Council in July.

Previous articles in this series are:

The report discussed here is

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514 Cherry Opening Ceremonies

The 514 Cherry streetcar had its official opening on June 18, 2016, although regular service will begin on June 19 at 7:45 am. The route will operate between the new Distillery Loop near Cherry and Mill Streets in the Distillery District and Dufferin Loop at the western entrance of the Canadian National Exhibition grounds.

20160619Map514Changes

This is only the beginning of what should be a much larger network in the eastern waterfront, but work on that stalled thanks to the previous administration at City Hall. The impetus to restart on a serious basis will be funding of the Don River realignment and the active development of the land south of the railway corridor. Some idea of the potential network is shown in the following illustration from the Gardiner Expressway realignment study.

Cherry Street will be realigned south of the railway and will cross the Keating Channel on a new bridge including provision for streetcar track. New track along a realigned Queens Quay East will meet up at Cherry and provide the link to Union Station. Also shown (dotted) below is the proposed southerly extension of Broadview Avenue including streetcar track from Queen to Commissioners Street (out of frame below this illustration). Track on Commissioners would link east from New Cherry Street at least to Broadview and thence to Leslie Street and the southwest corner of Leslie Barns.

GardinerFig7HybridAlternative

For the occasion, five streetcars were on hand:

  • Flexity 4421, the newest of the cars in service
  • ALRV 4225
  • CLRV 4140
  • PCC 4500
  • Peter Witt 2766

4421 laden with many passengers and a few politicians set off from Distillery Loop after the usual speechifying such occasions bring, and made a round trip to Dufferin Loop. On its return, the original four cars were still waiting, but in due course the whole parade set off back to the carhouse.

An amusing note from our journey was that the car stopped at (and even announced) most of the stops along King Street that are scheduled to be taken out of service on June 19. This will be the only time that a 514 Cherry car served those stops. No, we did not have a photo op at each one to mark its passage.

Already there is word that operators are displeased with the absence of a loo at Distillery Loop. It’s a shame the Canary Restaurant isn’t still in business at Front Street where streetcars stop right at the door. I suspect this would have been a favourite layover point.

The TTC appears to be slightly confused about the location of the eastern terminus of 514 Cherry. According to the schedule website, this would be Cherry Beach Loop which is somewhat further south across both the Keating Channel and the Ship Channel, a lot sandier, and notably without any track. Not even any Swan Boats.

20160619_514_CherryBeachLoop

 

Scarborough Subway Ridership and Development Charges

The Star’s Jennifer Pagliaro reports that City Council has approved a confidential settlement with BILD, the Building Industry and Land Development Association, to avoid an Ontario Municipal Board hearing that could lead to rejection of the Bylaw implementing the Development Charges intended to pay for the Scarborough Subway. The matter was before Council in confidential session on June 7, 2016.

Staff miscalculations on the ridership of the Scarborough subway will leave taxpayers on the hook for millions more, after city council voted to settle a dispute with developers.

According to a secret report before council on Tuesday, the contents of which were shared with the Star, the city’s lawyers advised councillors to accept a settlement with the group representing developers, the Building Industry and Land Development Association (BILD).

The settlement, which reduces the amount builders will have to pony up to help finance the subway, is expected to cost the city as much as $6 million in lost revenues.

If the settlement is for only $6 million, the City should consider itself lucky because the calculation underlying the DCs is based on flawed ridership estimates and an out of date network design. Moreover, the original authorization appears to double count subway revenue with both a special Scarborough Subway Tax and Development Charges to recover the same costs.

Recent news of a 50% reduction in expected Scarborough Subway ridership from 14,100 to 7,300 passengers in the AM peak hour reignited political debate on the viability of the subway scheme. However, these numbers are not just hypothetical indicators of how the line might perform, they are integral to the calculation of Development Charges (DCs) that would help to fund the City’s share of this project.

See also my previous articles:

The formula to calculate development charges is complex, but at its heart is one key measure: how much of a new transit project will benefit existing properties versus future development. If the primary role of a new subway is to improve the lot of current riders, then only a minority of its cost can be recouped by DCs (and thus from future purchasers of new properties).

Toronto allocates DCs on a city-wide basis rather than assigning each project only to the neighbourhoods it will directly serve. These charges already help pay for many projects as shown in the introduction to the study establishing the level of new charges for the SSE.

The Council of the City of Toronto passed a Development Charges (DC) By-law, By-law 1347-2013 in October 2013, for the recovery of capital costs associated with meeting the increased needs arising from development. The effective date of the Bylaw was November 1, 2013. The recovery of DCs is on a City-wide basis and relates to a wide range of eligible City services:

  • Spadina Subway Extension
  • Transit
  • Roads and Related
  • Water
  • Sanitary Sewer
  • Storm Water Management
  • Parks and Recreation
  • Library
  • Subsidized Housing
  • Police
  • Fire
  • Emergency Medical Services
  • Development-Related Studies
  • Civic Improvements
  • Child Care
  • Health
  • Pedestrian Infrastructure

For commercial property, there is some justification to this because increased mobility makes travel to jobs simpler well beyond the location of any one project. For example, the Scarborough Subway might be held out as a way to stimulate growth at the Town Centre, but it would also reduce commute times to other parts of Toronto, notably downtown.

For residential property, especially for the large proportion of new development downtown, this link is less clear, and DCs on new condos can wind up funding transit projects of little benefit to the new residents.

This split is part of the eternal battle between sharing the cost of public services across the city and charging them locally or by user group.

In the case of the Scarborough Subway Extension (SSE), the split between new and existing beneficiaries was determined by the change in ridership projected with the subway project. The benefit was allocated 61% to new development and 39% to existing riders. The ratio is high because, at the time of the calculation, the projected peak hour ridership for the SSE was estimated at 14,100 compared with a base value of 5,500. Both of these numbers are suspect.

The base value was factored up from actual SRT ridership of 4,000 per hour to 5,500 to represent the load the subway would have had were it to exist in 2015. That value of 4,000 is equivalent to a load of about 240 per train when the peak service was 17.14 trains/hour (3’30” headway) as in 2012. However, by 2013 service had been cut to 13.33 trains/hour (4’30” headway) to reduce equipment requirements on the aging line. That is the service operating today, although a further cut to 12 trains/hour (5’00” headway) is planned for June 20, 2016. Some of the demand that would be on the SRT travels via alternate routes, some is packed into fewer trains, and some has probably been lost to the TTC. What the ridership might be today were the RT not capacity constrained is hard to tell, but it should certainly be higher.

The high value for future subway ridership combines with the low value for presumed current demand to load much of the SSE’s cost onto new development.

The situation is complicated by two competing ridership estimates:

The contexts for the three estimates differ, and this goes some way to explaining why the numbers are so far apart:

  • A line to Sheppard will attract more ridership than one ending at the STC.
  • A subway station at Sheppard, in the absence of improvements to the GO corridor such as RER and SmartTrack, will attract ridership from Markham just as Finch Station does from the Yonge corridor north of Steeles.
  • Removal of the station at Lawrence East, coupled with new GO corridor services, will reduce demand on the subway.

There is no guarantee that the land use, job and population assumptions underlying the three estimates are the same, especially when the highest number was produced in the context of boosting the importance of STC as a growth centre.

What we are left with, however, is the likelihood that the level of DCs allocated for the Scarborough Subway project were based on the most optimistic scenario for new ridership, and a network configuration quite different from what will actually be built. If the calculation had been done on the basis of lower ridership numbers, the DC revenue available to fund the Scarborough Subway would have been considerably lower.

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