1. TRANSIT ASSET MANAGEMENT PLAN PLAN DE GESTION DES ACTIFS DU TRANSPORT EN COMMUN |
That Council:
1. Approve
in principle the City of Ottawa Transit Asset Management Plan.
2. Direct staff to submit the Transit Asset Management Plan to the Ontario Ministry of Transportation to fulfill the condition of the gas tax transfer to the City.
Que le Conseil :
1. approuve en principe le Plan de gestion des
actifs du transport en commun de la Ville d'Ottawa.
2. demande au personnel de présenter le plan de
gestion des actifs du transport en commun au ministère des Transports de
l'Ontario afin de se conformer à l'exigence relative au transfert de la taxe
sur l'essence à la Ville.
Documentation
1.
Acting Deputy City Manager, Public Works and
Services report dated
27 March 2006 (ACS2006-PWS-FLT-0004)
Report to/Rapport au :
Comité des transports
and Council / et au Conseil
27 March 2006 / le 27 mars 2006
Submitted by/Soumis par: R.G. Hewitt,
Acting Deputy City Manager/Directeur municipal adjoint par intérim,
Public Works and Services/Services et Travaux publics
Contact
Person/Personne ressource : Ron Gillespie, Director/directeur
Fleet Services/Service du parc automobile
(613) 842-3636 x2201, Ron.Gillespie@ottawa.ca
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SUBJECT: |
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OBJET: |
REPORT RECOMMENDATION
That the Transportation Committee recommend Council:
1. Approve in principle
the City of Ottawa Transit Asset Management Plan.
2. Direct staff to submit the Transit Asset Management Plan to the Ontario Ministry of Transportation to fulfill the condition of the gas tax transfer to the City.
RECOMMANDATION DU
RAPPORT
Le Comité des transports recommande au Conseil :
1. d'approuver en principe le Plan de gestion des
actifs du transport en commun de la Ville d'Ottawa.
2. De demander au personnel de présenter le plan
de gestion des actifs du transport en commun au ministère des Transports de
l'Ontario afin de se conformer à l'exigence relative au transfert de la taxe
sur l'essence à la Ville.
BACKGROUND
In May 2004, the provincial government announced that two cents per litre of the existing provincial gas tax would be transferred to municipalities to assist in expanding and renewing their public transit system with the objective of increasing transit ridership. The provincial gas tax funding was phased in, starting with one cent per litre in October 2004, was increased to 1.5 cents per litre in October 2005, and will rise to two cents per litre in October 2006.
Ontario’s funding allocation formula is based on a ratio of 70 per cent ridership and 30 per cent municipal population. So far, the City has received $4.7M in gas tax funds for 2004 and $21.0M for 2005. It expects to receive $30M in 2006 and $37M in 2007.
The Gas Tax Agreement between the City and the Province of Ontario requires the City to develop and adopt a Transit Ridership Growth Plan and a Transit Asset Management Plan (TAMP). The Province issued guides for the development of these two linked documents. These plans were to be submitted to the Province of Ontario prior to 31 March 2006 and must be submitted before receiving any future dedicated gas tax funds. The TAMP submission is scheduled to occur prior to the next gas tax payment.
The Transit Ridership Growth Plan is being submitted to the Province separately.
This report requests that Transportation Committee and Council consider the attached Transit Asset Management Plan (TAMP) which spans a ten year timeframe, 2006 to 2015, as the second component of the submission to the Province. The following highlights the key priorities of the TAMP which contains the strategies and initiatives identified in the approved 2006 Capital Budget over the next 10 years in moving towards the capabilities required in the Official Plan, Transportation Master Plan and the Transit Ridership Growth Plan.
DISCUSSION
The Province has prepared a guide to assist municipalities in the preparation of the Transit Asset Management Plan (TAMP) for submission. The development of a TAMP is a best practice in asset management and therefore the document serves two purposes. Firstly, it will be the submission to the Province to demonstrate the extent to which the municipality has the system components, maintenance and funding plan developed, with an eye to growth and enhancement, to support the achievement of the ridership and modal split targets. Secondly, the TAMP will provide an internal document that will be updated to reflect changes in strategy and assets for internal planning and operational purposes. The “Guide to Preparing a Transit Asset Management Plan” has been attached to this report as supporting documentation.
As a best practice the TAMP forces an organization to take stock of what it has, identify deficiencies or gaps in asset condition or capacity and it presents the financial requirement for maintenance, refurbishment, enhancement and system growth. It also outlines the evolution of these assets over time based on assumptions of technological improvements as well as how the performance of these assets will be monitored.
After gathering a comprehensive inventory of the inputs required to provide transit service in the City, the policies that govern its provision, and the objectives that are envisioned for transit service in the future the following key priorities have been developed for transit assets:
1) Maintaining Current Asset Capabilities
The most visible assets of the transit system are its rolling stock and the stations used for boarding and alighting. The expected life of a transit bus is 18 years based on 12 years from the Original Equipment Manufacturer (OEM) and six years after refurbishment, as required by the Ministry of Transportation under the Ontario Transit Vehicle Program (OTVP). Under the OTVP, the City receives 33 per cent of the capital cost of a replacement bus and 33 per cent of the cost of the 1st refurbishment
The Capital Program contains $66M for Bus Refurbishment over the life of the TAMP which is projected to refurbish 493 buses. There are 176 buses in the current fleet which will be retired at the end of their useful life and replaced with new revenue buses with an estimated capital requirement of $135M.
From a facilities standpoint, RPAM will implement the three phases of the Comprehensive Asset Management Strategy in 2006 as part of its Departmental Business Plan which will take into account transit facilities and the maintenance facilities. Life Cycle Renewal and other transit facility work will require $41M in funding. The expansion of the fleet will require the construction of two new transit maintenance garages for $140M during the TAMP timeframe. Bus maintenance equipment renewal within the maintenance facilities will be $17M.
The Transitway provides a vital link to the downtown core and across the City from East to West and North to South. Significant rehabilitation will take place with $7M in work planned.
There is also a requirement to continue to maintain the road network and further use of transit priority measures ($8M) to ensure that this asset contributes to the success of the dedicated corridors.
2) Improving Efficiency, Effectiveness and Customer
Service
A number of projects in the Capital Plan aim to improve operations and passenger amenities through refinements of the rolling stock, stations, and technology interfaces. Transit Computer Systems New Initiatives and the Integrated Transit Control Centre will require $24M in planned funding. Onboard the buses, the Smart Bus Information System will improve operational on-time performance, customer information, optimize bus resource allocation and reduce overall costs through enhanced fleet monitoring capabilities. It will facilitate enhanced customer amenities that will be possible because of the installation of this backbone across the fleet and the transit network. These include next vehicle arrival displays at major transit stops. This initiative requires $380,000 in funding for realization. The initial steps in the implementation of the “Smart Card” electronic fare system, which will be built upon the Smart Bus communication framework, are being taken in 2006 with the objective of having the system in place by 2008. This project will require $11.6M in funding for realization.
Technology will also enhance the efficiency and the effectiveness of Para Transpo operations through the implementation of Interactive Voice Response (IVR) system to allow customers to cancel bookings at any time, allowing vehicles to be reassigned to other tasks and improve overall service – approximately $125,000 in funding for 2006.
Customer safety while traveling will be part of the Integrated Security Management System (ISMS) program designed to address concerns and risks to the security of persons and assets within City of Ottawa facilities. The program involves installing a wide range of security devices, including closed circuit television (CCTV), Intrusion Alarms, Access Control, Alarm Response, etc., which are integrated into one comprehensive ISMS and monitored 24-hours a day by the City’s Security Operations Centre. The Capital Program of Transit Facilities identifies $146,000 in required funding. Some of this may be offset by Federal contributions as this is a Federal priority as well.
3) Expanding Capacity to Achieve Ridership Growth
The most important project aimed at expanding system capacity is the development of the North-South light rail transit line, which will be realized in the TAMP timeframe, and continued work on the addition of the East West light rail line. These initiatives will require $1.42B in funding.
The procurement and implementation of the North-South light rail system is being managed by the Planning and Growth Management Department and is identified in its Departmental Business Plan as a key supporting objective of the Transit Ridership Growth Plan. The system is being developed through a public private partnership with the private sector contractor designing, building and maintaining the system for a fifteen-year period. The maintenance responsibilities of the contractor will include all life-cycle maintenance of the system, including structures, stations and the maintenance facility. Transit Services will operate the system as part of the City’s integrated public transit network and custodial maintenance will be provided at stations by RPAM.
The Transitway and its expansion will continue to be an important component of the service into the future with $43M for light rail integration preparations and expansion plus $363M for specific projects such as the West Transitway (Bayshore to Pinecrest), the Southwest Transitway (Fallowfield to Nepean Town Centre), Cumberland Transitway as an interim measure preceding light rail, West Transitway (Terry Fox-Eagleson), EA studies and protection of future corridors. Park and Ride facilities will also be expanded with $20M in capital work planned.
During the timeframe of the TAMP there will be an additional investment of $199M in bus fleet expansion that will enhance the capacity of the fleet. The fuel type and configuration as well as new passenger amenities will be evaluated at the time of the procurement order.
In total, Transit Service provisions allocated to meet the goals of the Transit Ridership Growth Plan (TRGP) will require $2.48B in capital funding. There are several differences in the expenditure numbers used in TRGP and in TAMP. The $4.4B in capital costs in the TRGP is based on the Transportation Master Plan which covers the period 2003 to 2021. The $2.48B in capital costs in the TAMP are based on the 2006 Capital Budget and the related 10 year forecast from 2006 to 2015. The TRGP includes only the costs of growth construction while the TAMP includes capital costs for growth, rehabilitation and certain studies. The TRGP is based on the target of a 30% modal split while the TAMP is based on the financing sources and funding anticipated in the 2006 Budget.
During the implementation of these capital projects the following policies will guide the specific outcomes:
· Increase accessibility of all vehicles and facilities to meet requirements of the Ontarians with Disabilities Act – by planning to reach a fully accessible fleet by 2015
· Fleet Emissions Reduction Strategy – move to zero emission buses through phases
· Improve the performance and efficiency of fleet, property and infrastructure management through continuous improvement reviews
· Purchasing through competitive mechanisms that streamline the process and reduce overall costs such as parts supply standing offers, P3 initiatives, and others.
4) Performance Measures
The Ridership Growth Plan contains a comprehensive set of performance indicators that are not repeated here. However, some performance measures are presented here as a baseline for measurement of the objectives that are set out in this asset management plan. Over the course of the plan new measures may be developed or included. The following measures will show the magnitude of the system and the high level of efficiency in which it is operated. They are discussed more fully in the TAMP.
·
Percentage of
Days Transit Bus Requirements Met
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Percentage of
Planned Service Trips Operated
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Kilometres
Driven per Bus Change
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Efficiency
Indicator (OMBI) – Cost per kilometre
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Spare Bus Ratio
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Safety Tests
·
Environmental
Tests
Within this context assets are managed to mitigate the risks of service delivery failure to ensure that a safe, reliable, accessible and courteous service is delivered to 350,000 residents that choose to ride transit services every weekday.
CONSULTATION
There was no
specific public consultation carried out on the Transit Asset Management Plan
as part of the process for its development.
The strategies and initiatives that are described in the document have
been presented in the Annual Budget as well as the Long Range Financial Plan or
City Corporate Planning process, which were each subject to extensive
consultation. It is intended to be a companion
document to the Transit Ridership Growth Plan and provide the system capacity
in terms of an asset base with proposed growth plans for strategies and
initiatives that are already included in other approved documents (e.g.
Official Plan, Transportation Master Plan) that have already been subjected to
extensive consultation.
FINANCIAL IMPLICATIONS
The Financial Program is based on the 2006 Capital Budget
approved by Council and the related 10 year forecast. The annual budget process will remain the City's principal forum
for deciding how to allocate available capital and operating funds. This process must consider not only the
availability of the required capital funding, but also the funding required to
operate and maintain the assets concerned.
The City has a Long Range Financial Plan (LRFP) to forecast the timing
of key expenditures over the next ten years and the need to allocate/generate
funds for these initiatives. This plan
serves as the basis of the annual capital budgeting process. The Transit Financial Program is
summarized in the table below. It
outlines the total of the forecast expenditures required and outlines how the
expenditures are projected to be financed.
Transit Financial Program Projected in 2006 - 2015
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Future Public Transit
Costs included in the 2006 Capital Budget |
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(2006 - 2015, $
millions) |
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Cost Area |
2006 |
2007 |
2008 |
2009-15 |
TOTAL |
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Light Rail |
730 |
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689 |
1,419 |
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Transitway |
16 |
53 |
19 |
319 |
407 |
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Buses - refurbishment, replacement, growth |
37 |
71 |
12 |
280 |
400 |
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Facilities & Equipment |
14 |
59 |
5 |
121 |
199 |
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Systems |
3 |
13 |
7 |
13 |
36 |
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Park & Ride Lots |
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7 |
13 |
20 |
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Total Capital Costs |
800 |
196 |
50 |
1,435 |
2,481 |
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Funding Sources |
2006 |
2007 |
2008 |
2009-15 |
TOTAL |
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Federal Contributions |
233 |
40 |
10 |
472 |
755 |
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Provincial Revenue (other than gas tax funding) |
212 |
34 |
5 |
420 |
671 |
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Debenture Proceeds |
215 |
43 |
8 |
356 |
622 |
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Development Charges |
116 |
23 |
8 |
145 |
292 |
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Provincial Gas Tax (Gross) |
30 |
37 |
37 |
259 |
363 |
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Provincial Gas Tax Allocated to Operating Costs |
(7) |
(10) |
(37) |
(224) |
(278) |
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Tax Supported Reserves |
1 |
10 |
19 |
7 |
37 |
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Other Unspecified Revenue (1) |
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18 |
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18 |
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Total Funding Sources |
800 |
196 |
50 |
1,435 |
2,481 |
Note 1: The other revenue requirement refers only to
the West Transitway project. Staff is
pursuing senior level funding, that at the time of this report is not confirmed.
Provincial gas tax is presented as projected annual gross
receipts, less the portion allocated to fund eligible operating budget
expenditures, including debt-servicing costs.
As first documented in the Long Range Financial Plan, the majority of
Provincial gas tax receipts in the outer years are projected to go towards debt
servicing.
While the provincial gas tax revenues are separately identified,
the other major contributions from the federal and provincial government are
the $400 million committed towards the current LRT project, and the expectation
of a comparable commitment to the East-West LRT line. Contributions from
Development Charges total $292 million of which the LRT project is
allocated $109 million in the 2006 Draft Capital Budget. The funds the city will borrow as debentures
and contribute from current tax revenues are also identified in the table.
The current Long Rang Financial Plan (LRFP) calls for an expenditure level beyond current resources. The LRFP will be refreshed during 2006, which is likely to lead to some changes in the plan for the latter years of the planning period. These changes will be reflected in the next TAMP.
The annual budget process will remain the City’s principal forum for deciding which projects will proceed according to available capital and operating funds.
SUPPORTING DOCUMENTATION
Document 1 A Guide to Preparing a Transit Asset Management Plan (Province of Ontario – June 2005) -previously distributed and held on file with the City Clerk
Document 2 Transit Asset Management Plan for the City
of Ottawa (March 2006) - previously distributed and held on file with
the City Clerk
Document
3 Selected RPAM Information and
Data - On file with the City Clerk
This
document contains a facility listing, life cycle renewal forecast, process
flowcharts and synopsis of programs.
DISPOSITION
Upon approval of the Transit Asset Management Plan (TAMP) by Committee and Council, staff will:
· Finalize the TAMP for formal submission to the Ministry of Transportation.
· Review the TAMP on a regular basis and update as necessary.