s prioritized needs and it is essential that it be fully funded by the City of Toronto to ensure that the transit system is restored and maintained in a state of good repair;
(2) requested that a copy of this report be forwarded to the Council of the City of Toronto for information; and
(3) requested that a copy of this report be forwarded to the Ministry of Transportation for information.
The Commission also approved the following:
(1) that a meeting be set-up involving the Commission and the City Budget Committee for the purpose of having staff make a full presentation on the Capital Budget;
(2) that the Chair of the Toronto Transit Commission meet with the City Treasurer and the Chief General Manager of the Toronto Transit Commission to discuss issues of capital and operating budgets and first principles being adopted by City Council; and
(3) that the staff from the City of Toronto be requested to include in such meeting the former staff from the Municipality of Metropolitan Toronto who were assigned the Toronto Transit Commission budget.
The foregoing is forwarded to City Council and the Province of Ontario for information, as well as to the appropriate City of Toronto staff for attention.
(Report No. 9 of the Toronto Transit Commission,
entitled "1998-2002 Capital Program Status".)
Recommendations:
It is recommended that the Commission:
(1) receive this report for information, noting that:
(a) with the exception of the New Initiatives identified in this report, all projects included in the 1998-2002 Capital Program approved by the Commission on November 18, 1997, are proceeding according to schedule; and
(b) the Capital Program for the existing system represents the Commission's prioritized needs and it is essential that it be fully funded by the City of Toronto to ensure that the transit system is restored and maintained in a state of good repair.
(2) forward this report to the Council of the City of Toronto for information; and
(3) forward this report to the Ministry of Transportation for information.
Funding:
Sufficient funds are included in the 1998-2002 Capital Program approved by the Commission on November 18, 1997, to provide for all currently anticipated capital expenditures.
Background:
Approval of the 1998-2002 Capital Program budget, together with full project approval for all projects, was granted by the Commission on November 18, 1997. No exceptions were noted for which project approval was to be withheld. Immediately thereafter, the Capital Program was forwarded to the Municipality of Metropolitan Toronto and the Ministry of Transportation for their approvals.
Council budget approval represents project approval as follows:
(1) finite defined scope projects (commencing in 1998 or prior) receive financing and project approval equal to the estimated final cost of the project;
(2) rolling five-year programs receive additional financing and project approval for two years (current budget year (1998) and next budget year (1999)) of the program; and
(3) additional project financing and approval requirements identified outside of the budget process will be brought forward individually.
Ministry of Transportation of Ontario approval of the requests included in the 1998-2002 Capital Program is required in order to confirm capital funding and to update Schedule A to the Five-Year Capital Subsidy Agreement.
Discussion:
Staff have provided details to the City of Toronto for the additional financing and project approvals required for all projects included in the 1998-2002 Capital Program. Projects requiring urgent financing approvals have been identified and submitted for Toronto Council consideration of these items in February, 1998. It is further anticipated that the detail budget review of the entire 1998-2002 Capital Program will be undertaken by Toronto Council in April, 1998. The Ministry of Transportation has not yet confirmed capital funding of the program and staff are pursuing this matter.
While City and Provincial approvals have not yet been received, staff are proceeding, as in previous years, with all projects as set out in the Commission-approved Capital Program, with the following exceptions:
New Initiatives:
(1) Wheel-Trans Replacement Buses - State of Good Repair (pp 397-400);
(2) Fire Ventilation Upgrade - Improvement (pp 651-658);
(3) Queen's Quay Connection - Expansion (pp 689-692); and
(4) Expansion Buses - Expansion (pp 693-694).
It is necessary to proceed with Capital works in advance of 1998 budget deliberation for reasons of operational necessity and to ensure that the targets and schedules set out in the Capital Program are achieved.
Justification:
The 1998-2002 Capital Program, as approved by the Commission on November 18, 1997, represents the prioritized needs budget, developed through significant effort and review, required to restore and maintain the transit system in a state of good repair. It represents a life-cycle investment plan which is well within the level that should be expected on a capital asset base of approximately $7 billion (current requirements are higher largely due to the Sheppard Subway Project). Under this plan, significant commitments have been made with internal resources and existing contracts, and these cannot be turned 'on and off' without serious operational and financial consequences. Upwards of 600 people are on staff under the approved budget. Any delay in undertaking the Capital programs will directly impact the Operating Budget and we can ill afford this.
