Report to/Rapport au
:
Transit Committee
Comité du
transport en commun
and
Council / et au Conseil
4
February 2009 / le 4 février 2009
Submitted by/Soumis par:
Nancy Schepers, , Deputy City Manager/
Directrice municipale adjointe, Infrastructure
Services and Community Sustainability/Services
d’infrastructure et Viabilité des collectivités
and /
et
Marian Simulik, City Treasurer / trésorière municipale
Contact Person/Personne ressource : Alain Mercier, General Manager/Directeur général
Transit Services/Services du transport en commun
613-842-3636 x2271, Alain.Mercier@ottawa.ca
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Ref N°: ACS2009-CMR-FIN-0005 |
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SUBJECT: |
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OBJET : |
BUDGET DES IMMOBILISATIONS
LIéES AU TRANSPORT EN COMMUN POUR 2009 ET PRéVISION POUR 9 ANS |
REPORT
RECOMMENDATION
That
the Draft 2009 Transit Capital Budget and 9 Year Forecast
be received and tabled at the Special Transit
Committee meeting to be held on February 9,
2009 for subsequent consideration on February 18, 2009, followed by
deliberation and consideration by Council at a subsequent meeting.
RECOMMANDATION
DU RAPPORT
Que le budget d’immobilisation provisoire des
transports en commun de 2009 et les prévisions sur neuf ans soient portés à la
connaissance du Comité du
transport en commun lors de sa réunion extraordinaire
du 9 février 2009, puis à un examen plus approfondi le
18 février 2009, avant d’être soumis aux délibérations et à la réflexion du
Conseil lors d’une réunion ultérieure.
BACKGROUND
On November 28, 2008, Council approved the
Transportation Master Plan. At that
time, Council directed staff to bring forward the Transit Capital Estimates on
January 21, 2009 (subsequently amended to February 4, 2009), so that the budget
could properly include the decisions that were made in approving the TMP.
DISCUSSION
The 2009 transit capital budget includes a look
forward over the ten years from 2009 until 2018 to show the major capital
investments that will be required to build the City’s rapid transit network,
along with the regular, ongoing types of capital expenditures that are required
to accommodate growth, to sustain the transit system in a state of good repair,
and to respond to strategic decisions of Council and to regulations of
provincial and federal governments.
In this report, the recommended 2009 transit capital
budget is grouped into the following service categories:
·
Planning
and implementation of the rapid transit network
·
Normal
growth of the transit system as ridership increases
·
Buses
– growth, replacement, refurbishing
·
Renewing
facilities and equipment
·
Strategic
initiatives and regulatory
The following table and chart summarize the forecast
requirements for authority and the spending plan in each of these five
categories, for each year from 2009 until 2018. Further details are available
in the material attached to this report. The authority requirements can vary
greatly by year to year, for example rapid transit costs are higher as projects
are approved and bus purchase costs are lower when the first section of the
light-rail line opens and replaces part of the bus route network. The spending
plan is more consistent from year to year, as rapid transit and other projects
are implemented.
|
|
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
10-year total 1 |
|
Rapid Transit |
$12 M |
$206 M |
$54 M |
$1.6 B |
$21 M |
$21 M |
$582 M |
$29 M |
$34 M |
$291 M |
$2.8 B |
|
Normal Growth |
$6 M |
$4 M |
$5 M |
$5 M |
$5 M |
$5 M |
$5 M |
$5 M |
$5 M |
$5 M |
$52 M |
|
Buses |
$100 M |
$56 M |
$41 M |
$48 M |
$45 M |
$70 M |
$161 M |
$57 M |
$48 M |
$112 M |
$737 M |
|
Renewal |
$27 M |
$13 M |
$12 M |
$9 M |
$10 M |
$13 M |
$13 M |
$7 M |
$10 M |
$10 M |
$123 M |
|
Strategic/ Regulatory |
$12 M |
$3 M |
$2 M |
$3 M |
$2 M |
$2 M |
$3 M |
$21 M |
$4 M |
$2 M |
$54 M |
|
Total Authority by Year 1 |
$158 M |
$282 M |
$114 M |
$1.6 B |
$83 M |
$110 M |
$763 M |
$119 M |
$101 M |
$421 M |
$3.8 B |
|
Spending Plan |
$202 M 2 |
$146 M |
$138 M |
$347 M |
$263 M |
$300 M |
$409 M |
$421 M |
$417 M |
$558 M |
$3.2 B 3 |
Notes: 1. Totals may not add, due to rounding.
2. Includes spending, for these
projects, against previous years’ authority
3. $3.2 B in spending to 2018; $3.8 B of spending to 2021
Each of these categories is discussed below, and
details of all of the proposed work in all categories is presented in the
material attached to this report.
Planning and Implementation of the Rapid Transit Network
Under this category is work to prepare for the
expansion of the rapid transit network as approved by Council in 2008 as part
of the Transportation Master Plan. Over the years from 2009 until 2018, it is
forecast that $2.8-billion will be required to complete the first increment of
the rapid transit network. The bulk of
this work includes the conversion of the Transitway to light rail from Tunney’s
Pasture to Blair, including the downtown transit tunnel and light rail
maintenance yard. The procurement of
light rail vehicles will also need to get underway during this time to ensure
that they are available for the opening of the light rail line. Additional
major projects within the nine-year forecast include the construction of the
Strandherd-Armstrong Bridge with bus rapid transit on Strandherd Drive between
River Road and Woodroffe Avenue and transit priority measures along Woodroffe
Avenue between Strandherd Drive and Fallowfield. Baseline Station is also planned to be redeveloped, and the
Cumberland Transitway from Blair Station to Navan Road and the West Transitway
from Bayshore to Moodie are planned for construction.
The new authority that is being sought for 2009,
$12.4-million, is primarily to pay for the environmental assessments for
proposed rapid transit lines and for property acquisitions to protect for
future transit corridors and facilities. (The section of Transitway from
Fallowfield Station to Barrhaven Town Centre is funded from authority approved
as part of the 2008 capital budget.)
The 2009 projects will accomplish the following:
·
Conduct
environmental assessments of the downtown transit tunnel and the light rail
corridor (Blair to Tunney’s Pasture), the western corridor (Tunney’s Pasture to
Baseline), the West Transitway (Southwest Transitway to Pinecrest), the
Cumberland Transitway (Blair Station to Navan Road), and a pathway connection
from the Hunt Club community west of the Airport Parkway to South
Keys/Greenboro;
·
Conduct
studies on light rail technology selection, transit-oriented development
implementation, TMP performance monitoring, and the Westboro/Richmond Road
Transportation Management Implementation Plan;
·
Carry
out initial planning and scope work for various transit intensive and transit
priority corridors identified within the TMP; and,
·
Allow
for property acquisitions as opportunities arise to protect for future transit
corridors and facilities as they become available (if they cannot be acquired
through land dedication as a condition of development).
Normal Growth of the Transit System as Ridership Increases
In addition to the major rapid transit projects
described above, expenditures are required for the normal ongoing growth of the
transit system in response to growing ridership levels. In recent years,
ridership has been growing by two to five percent each year. Over the years
from 2009 until 2018, it is forecast that $52.1-million will be required to
expand the transit system and complement the rapid transit projects.
The new authority that is being sought for 2009,
$5.8-million, is primarily to improve the ability of the transit system to
provide a convenient, attractive, secure, and reliable service for the growing
numbers of customers.
The 2009 projects will
accomplish the following:
·
Make
improvements to the Transitway for improved accessibility and improved customer
service;
·
Prepare
the new Transitway section between Bayshore and Pinecrest for operation;
·
Install
transit priority measures – signals, lane markings, and geometric modifications
– on Carling, Baseline, and Heron, and at other key locations;
·
Upgrade
several computer systems that support transit operations;
·
Purchase
new transit support vehicles – cars for special constables and transit
supervisors and a push truck for the bus garages; and,
·
Conduct
studies on maintenance and storage requirements for double-decker buses and on
future transit priority measures for Rideau, King Edward, Fisher, Hunt Club,
and other locations.
Buses – Growth, Replacement, and Refurbishing
The City purchases new transit buses regularly, both
to replace life-expired buses and to expand the amount of service provided.
Over the years from 2009 until 2018, it is forecast that 630 new buses will be
required. Along with the mid-life refurbishing of buses, it is forecast that
$737.4-million will be required over these years. Included within this number
are productivity improvements and the reductions in the number of buses needed
as new sections of Transitway are built and opened and when the first section
of light rail line opens. The table attached as Document 1 shows the current
plan for the purchase of new buses over the next ten years.
All buses are refurbished mid-way through their
planned 18-year lives to keep them in safe and reliable condition. Buses in
North America are manufactured to last for 12 years, the age at which the U.S.
government funds replacement, but in Canada, the norm is to refurbish buses and
retain them in service for 18 years. The actual date of refurbishment depends
on the actual condition of each bus, and so the actual work to be carried out
in 2009 will depend on assessments that are made individually for each bus.
The new authority that is being sought for 2009,
$100.5-million, is to pay for 105 new buses, to arrive in 2010, and for the
refurbishing of buses that are mid-way through their planned life in 2009. (The
95 buses that are currently on order and that will arrive for service in late
2009 were funded from authority approved as part of the 2008 capital budget.)
If there is any reduction in the growth requirement based on the observed rate
of recovery of ridership after the recent transit strike, staff will make the
adjustment and will advise Transit Committee.
The 2009 projects will accomplish the following:
·
Buy
42 new buses to increase service during peak periods in 2010;
·
Buy
63 new buses to replace life-expired buses in 2010; and,
·
Refurbish
buses that are mid-way through their planned life in 2009.
Renewing Facilities and Equipment
Substantial capital expenditures are required to
maintain the transit system in a state of good repair. Over the years from 2009
until 2018, it is forecast that $122.8-million will be required to
rehabilitate, renew, and replace major physical elements of the transit system.
The new authority that is being sought for 2009,
$27.3-million, is primarily to pay for the rehabilitation of structures,
pavement, and stations along the Transitway, work on O-Train structures,
stations, and facilities to extend their lives until they are made part of a
future light rail line, and equipment and software that is used to operate and
support the transit system.
The
2009 projects will accomplish the following:
·
Upgrade
facilities and equipment and acquire property at Walkley Yard to support O‑Train
operation;
·
Replace
life-expired equipment in bus garages and the cash office;
·
Replace
life-expired transit support vehicles;
·
Rehabilitate
O-Train and Transitway structures and stations;
·
Repave
sections of the Transitway and park and ride lots;
·
Rehabilitate
maintenance facilities and work spaces to accommodate current system service
levels;
·
Replace
obsolete software for scheduling and passenger counting, and add software for
recording telephone calls in call centres; and,
·
Conduct
studies of Transitway rehabilitation requirements for 2010 and future years,
including an evaluation of pressing needs before conversion of the section
between Blair and Tunney’s Pasture to light rail.
Strategic Initiatives
and Regulatory
Some recommended capital
expenditures are aimed at improving the quality of service that the transit
system provides for customers or at complying with changing regulations that
apply to transit service. Over the years from 2009 until 2018, it is forecast
that $53.7-million will be required to fund these strategic initiatives.
The new authority that is being sought for 2009,
$11.7-million, is primarily to improve communications and safety on-board buses
and across the transit system.
The 2009 projects will accomplish the following:
·
Upgrade
computer systems on board buses and in transit work locations;
·
Purchase
new software to integrate operational data for improved planning and
decision-making, to support Para Transpo operations, and to integrate the
forthcoming Smartcard system with other City systems;
·
Purchase
computer-aided dispatch and records management system for transit law
enforcement;
·
Prepare
Phase 2 of the Safety/Operations Management System for transit operations;
·
Introduce
computer-aided learning for training of transit workers;
·
Prepare
emergency and business continuity plans for the transit system; and,
·
Conduct
the transit vehicle emission reduction strategy.
CITY STRATEGIC DIRECTIONS
The budget is consistent with the following Council-approved City Strategic Directions:
A. Transportation
3. Ensure
current federal and provincial commitments for transportation programs are
maintained, and seek enhanced support for existing and new potential programs.
B. Transit
3. Attain transit goals (30
percent modal split) by 2021.
4. Realize a 100 percent
accessible transit fleet by 2017.
5. Achieve state of the art fuel
and environmental efficiency by 2017.
C. Infrastructure
Renewal
6. Identify key municipal facilities of city-wide significance and
implement an effective remediation and restoration plan for these assets where
required.
D. Solid
Waste and Environment
4. Reduce greenhouse gas emissions by up to 20 percent by 2012.
E. Sustainable
Healthy and Active City
9. Require walking, transit and cycling oriented communities and
employment centres.
F. Planning
and Growth Management
2. Respect the existing urban
fabric, neighbourhood form and the limits of hard services so that new growth
is integrated seamlessly with established communities.
4. Ensure that
City infrastructure required for new growth is built or improved as needed to
serve the growth.
G. Sustainable
Finances
4. Seek out new sources of funding (like gas tax revenue).
6. Achieve efficiencies in City
operations.
CONSULTATION
The
TMP update process included significant consultation with respect to the
proposed transit capital investment and timing of projects, as previously
documented in the following staff report:
http://ottawa.ca/calendar/ottawa/citycouncil/trc/2008/11-10/ACS2008-ICS-PLA-0227.htm
FINANCIAL IMPLICATIONS
Finance Branch developed
a high-level funding model that forecasts the sources of capital funding
available for transit projects for a 10-year timeframe.
The funding sources available for transit capital
include:
·
Provincial
gas tax (assumed not to increase over current levels);
·
Federal
gas tax (assumed not to increase over current levels);
·
Development
charges (based on existing background study);
·
Transit
levy contributions to capital and debt servicing; and,
·
Provincial
bus replacement program revenues (assumed to continue).
The model also assumed
that the Federal and Provincial governments would each contribute one-third of
the funds required for the design and construction of the Rapid Transit Plan,
which is valued at $1.971-billion (2009 dollars) over the 10-year
period.
Under these assumptions,
the City can fund the City’s share of $1.825-billion of the 10 Year Transit
Capital Plan.
While debt funding has been identified to be utilized in support of the Capital
budget, it will only be issued once actual spending takes place. The modelling
assumes that the debt will be issued three years after Council approves the
debt authority. The following table
provides a breakdown of the City financing for the Transit Capital Plan.
|
10 Year Transit Funding |
Millions |
|
Revenues – Federal/Provincial |
1,971 |
|
Transit Reserves |
421.8 |
|
Transit Debt |
479.9 |
|
DC Cash |
191.5 |
|
DC Debt |
90.0 |
|
Federal Gas Tax - Cash |
374.1 |
|
Federal Gas Tax - Debt |
95.9 |
|
Provincial Gas Tax - Cash |
156.3 |
|
Provincial Gas Tax - Debt |
15.4 |
|
|
Revenues from fares and transit levy contributions are expected to continue to be the main funding sources to support transit operating and maintenance expenses. While rate of inflationary increases are required throughout the 10-year operating plan, it is also assumes that significant operating and maintenance efficiencies and associated cost savings will result from the proposed rapid transit investment in 2017 when the first phase of the LRT is implemented. As outlined in the TMP, the Investment Strategy may identify additional funding streams that could impact the transit levy. The results of the Investment Strategy are to be available by mid-2009.
SUPPORTING DOCUMENTATION
Document 1 Planned Bus Fleet, 2009-2018
Document 2 2009 Draft Transit Capital Budget and 2010-18 Forecast
DISPOSITION
Budgets will be amended as per Council deliberations and adoption.
