August 20, 1998

Ms. Novina Wong

Clerk

City of Toronto

7th Floor, Metro Hall

55 John Street

Toronto, Ontario

M5V 3C6

Dear Ms. Wong:

At its meeting on Wednesday, August 19, 1998, the Commission considered the attached report entitled, "Procurement Authorization - Excavation And Paving 1998 Surface Track Program."

The Commission approved the Recommendation contained in the above report, as listed below:

"It is recommended that the Commission:

1)approve the issuance of a Purchase Order in the total upset limit amount of $3,802,000 to the City of Toronto - Works & Emergency Services Department for the Commission's cost of excavation and paving within the track allowance. This work will be completed by the City of Toronto in 1998; and

2)forward this report to the City of Toronto requesting an increase in the TTC's approved 1998 capital program in the amount of $2,223,000 and a corresponding increase in Project Approval to reflect the downloading of costs from the City to the TTC for the road reconstruction portion of the surface track work, (this work has traditionally been funded through the City's Transportation departments budget); and

3)note that this work is proceeding at this time since deferral of the work would impact the ability to complete the work in a timely and cost efficient manner."

The foregoing if forwarded to City of Toronto Council for the necessary approval, as detailed in the report.

Sincerely,

Vincent Rodo

General Secretary

1-64 - Attachment

TORONTO TRANSIT COMMISSION

REPORT NO.

MEETING DATE:August 19, 1998

SUBJECT:PROCUREMENT AUTHORIZATION -

EXCAVATION AND PAVING

1998 SURFACE TRACK PROGRAM

RECOMMENDATION

It is recommended that the Commission:

1)approve the issuance of a Purchase Order in the total upset limit amount of $3,802,000 to the City of Toronto - Works & Emergency Services Department for the Commission's cost of excavation and paving within the track allowance. This work will be completed by the City of Toronto in 1998; and

2)forward this report to the City of Toronto requesting an increase in the TTC's approved 1998 capital program in the amount of $2,223,000 and a corresponding increase in Project Approval to reflect the downloading of costs from the City to the TTC for the road reconstruction portion of the surface track work, (this work has traditionally been funded through the City's Transportation departments budget); and

3)note that this work is proceeding at this time since deferral of the work would impact the ability to complete the work in a timely and cost efficient manner.

FUNDING

There are insufficient funds to accommodate the downloading impact of City costs in the 1998-2002 Capital Program under 1.2 Surface Track Replacement Program & Surface - Special Trackwork Replacement Program, as set out on pages 31-51 in the "State of Good Repair" category. A total amount of $1,579,000 was budgeted for excavation and paving in 1998, leaving a shortfall of $2,223,000 as a result of City downloading.

The TTC's 1999-2003 Capital program will included sufficient expenditure estimates to accommodate the cost of the work downloaded from the City's budget to the TTC's budget. The downloading of the costs amount to an increase of $28.8 million in the TTC's 1998-2002 budget envelope.

BACKGROUND

Each year sections of the Streetcar network are rehabilitated by the Commission in conjunction with the City of Toronto (formerly Metro Transportation and City of Toronto). Under this arrangement the Municipalities provided technical assistance with the project while funding a portion of the roadway costs under a cost-sharing formula. In 1998, the City of Toronto withdrew previously committed funds from this program.

In order to maintain the Streetcar tracks in a state of good repair, it is necessary to proceed with these projects as originally planned, absorbing the City of Toronto excavation and paving costs associated with this work (see attached letter dated April 7, 1998).

DISCUSSION

There are 6 surface track locations and 5 special trackwork locations scheduled in 1998 within the City of Toronto jurisdiction. No change in the scope or schedule of the program was made from budget. The Commission's portion of the cost for excavation and paving work within the track allowance at these locations is estimated by the City of Toronto - Works & Emergency Services Department at an upset limit amount of $3,802,000.

JUSTIFICATION

In order to maintain the Commission's surface track system in a state of good repair, it is necessary to proceed with this work in 1998.

Approval is also necessary to enable payment for the Commission's portion of the excavation and paving costs, including the impact of City downloading.

- - - - - - - - - - - -

August 24, 1998

6-123-124

Attachment:April 7, 1998 letter to Metro

STAFF SUMMARY SHEET