November 30, 1999
Councillor Tom Jakobek
Chair - Budget Advisory Committee
City of Toronto
Toronto City Hall
100 Queen Street West
Suite B33
Toronto, Ontario
M5H 2N2
Dear Councillor Jakobek:
Re: Sheppard Subway -
Information Request Made at November 15, 1999
Budget Advisory Committee Meeting
During the review of TTC's 2000-2004 Capital Budget, the Chief General Manager was requested to provide an update on
the construction costs for the Sheppard Subway, including any overages.
The TTC's Capital Budget for the current period 1999-2003 approved by Council in March 1999 provides for funding to
complete the Sheppard Subway totalling $932,928,000. As of the end of November, the project is on budget with the
amount of $932,810,000 as the estimated final cost.
The design of the fixed facilities is complete and construction well advanced while the design of the operating systems is
approximately 90% complete. The other elements of the project are in various stages of completion. Overall completion at
end of November is approximately 68%.
Some of the construction and installation elements are slightly ahead of schedule and some are slightly behind. There are
no critical path elements behind schedule and consequently the project remains on the original schedule to open for revenue
service in June 2002.
Attached is a table which provides the budget to estimated final cost. Following the budget table is a schedule of the
project. This information can be provided in more detail if required.
It is to be noted that keeping the project on budget and on schedule is predicated on the usual qualifications that there be no
natural disaster, prolonged labour disruption, high inflation, etc., the likelihood of which are not evident at this time.
It is also to be noted that the budget figure requires that the project realize financial credit for the following two items:
1. A credit of $4.2 million from the sale of the two Tunnel Boring Machines has been carried in the budget figure. The
machines completed tunnelling in June 1999 and have been placed for sale. One offer to purchase was not accepted due to
being too low. There is currently a conditional offer to purchase one machine, which has been accepted by the Commission,
which closely approximates what the Commission expects to receive for one machine.
2. Sites required for construction located at the north west quadrant of Yonge and Sheppard and smaller parcels at other
locations were purchased as a project cost at the outset of the project and are to be sold after mid-2001. The proceeds
budgeted at $6.3 million are to be credited to the project. Given the favourable real estate market conditions, it is expected
that this value will be realized.
In summary, the Sheppard Subway construction is currently on budget and on schedule.
Sincerely,
Richard C. Ducharme
Chief General Manager
50-17-10
950954
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