MTO Underpass construction. Hydro One â Transmission line .... Transmission Line Relocation from Courtland Avenue to .
The ION Story
January 2015
Planning for the future
The Region of Waterloo has been planning for rapid transit for more than a decade
The Region must manage growth Current population: 550,000 4th largest community in Ontario 10th largest community in Canada 2031 estimated population: 742,000
Align with Provincial Legislation Places to Grow Growth Plan for the Greater Golden Horseshoe
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Project history and milestones 1976: Creating a central transit corridor is presented in the Regional Official Policies Plan 2000: The Region of Waterloo assumes responsibility for public transit 2003: Council approves the Regional Growth Management Strategy, including a rapid transit system 2006: Ontario's Places to Grow Plan is released, including a rapid transit system in Waterloo Region 2009: Council approves LRT as the preferred technology as part of the Phase 2 Rapid Transit EA 2010: Ontario commits $300 million to rapid transit in Waterloo Region; Canada commits up to $265 million 2011: Council approves LRT for Waterloo Region in two stages along with a funding strategy for the service www.rideION.ca
Why we need ION ION will: Help contain urban sprawl and ease traffic congestion Protect environmentally-sensitive areas Preserve farmland and the rural lifestyle Move people, by creating transportation choice
Without ION, the Region will require 500 new lane kilometres of roadways, at a cost of $1.4 billion ION reduces the need for new roads by 40 per cent or $500 million
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In the cities What's in it for me?
New business, residential and commercial developments create prosperous and connected communities A new transportation choice ION helps the community balance daily car and transit use Traffic congestion reduced New employment opportunities
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In the suburbs What's in it for me?
The need to expand roads is reduced Infrastructure required to provide Regional and/or City services is reduced Expanded crosstown travel available with more convenient new iXpress routes Increased local bus service with improved frequencies One fare for all GRT and ION services for easy transfers
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In rural areas What's in it for me?
Encouraging development in existing built-up areas will protect the Region's agricultural lands The region's unique rural lifestyle will be preserved Countryside is protected, thereby helping to support local food production ION helps reduce greenhouse gases Urban development helps protect the region's groundwater
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Building ION in Waterloo Region
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GRT integration
Overall network redesign by Grand River Transit Goal is to create a seamless, efficient and easy-to-use transit system Common fare payment system for both GRT and ION Expanded iXpress services Victoria/Highland (planned for 2015) Ottawa (to come) Maple Grove (in place) University (in place) Phased-in ION aBRT service
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Regional transportation master plan
Trails: ION stops are located within close proximity to the region’s vast network of multi-use trails
King/Victoria Transit Hub: With connections to ION, GRT, GO Transit and VIA rail (Hub lands owned by Region of Waterloo)
Roads: Over the next 10 years, the Region has committed $860 million for major road expansions and improvements
Community Building Strategy: Framework for development along the Central Transit Corridor (shaping the community) www.rideION.ca
Ridership
Since the Region began providing transit in 2000 Overall ridership has more than doubled, from 9 million (2000) to 21 million (2012)
Projected first-year ridership for ION is 25,000 rides per day Route 7 and iXpress are already seeing 22,000 rides per day
In 2012, GRT achieved its ridership goal for 2016 (four years ahead of schedule) with 22 million total rides
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Shaping the community ION corridor is seeing many new residential and business investments Over $1 billion in construction value within the Central Transit Corridor (CTC) since 2011 $253 million in construction value within CTC in 2013, representing 33% of value of all construction The Region's Official Plan aims to focus more growth in existing built-up areas
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Community Building Strategy The CBS is an investment plan that shows not only what is, but what could be
It identifies opportunities for new development, and for associated public and private investment in the ION rapid transit corridor It also identifies how we need to protect and promote some of our most valuable community assets, like stable neighbourhoods, heritage buildings and world-class institutions
Community Building Strategy 8 OPPORTUNITIES
Fostering Investment
Enhancing Mobility Throughout the Region
Enhancing the Learning Experience
Encouraging a Healthy Inclusive Community
Creating High Quality Urban Places
Greening the Corridor
Strengthening the Employment Opportunity
Creating a Great Place to Visit
Questions
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ION aBRT operations
Frequent, convenient and comfortable service Operates in mixed traffic Bus bypass shoulders Signal prioritization Queue jumping at intersections Limited stop service Enhanced stops and platforms
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ION light rail transit vehicles
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ION LRT vehicles
The Region has purchased 14 Light Rail Vehicles from Bombardier ION stops will be designed for two LRVs One vehicle includes: 5 articulated sections 2 cab, 3 coach
100% low-floor vehicles A first in North America
Extra-wide interior 57 seats, with plenty of standing room Capacity: 200 passengers per vehicle
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ION LRT vehicles • Council approved negotiations with MetroLinx in June 2012 • Council approved purchase of vehicles on July 10, 2013 • Complicated Tri-party Agreement.
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Bombardier/ Metrolinx Contract Report E-13-070/F-13-050 approved July 13, 2013 • Agreement between the Region, Metrolinx and Bombardier to purchase up to 28 Bombardier light rail vehicles (LRVS) • Initial contract price $90.8M. There is a contingency of $4.7M for a total of $95.5M. • Includes 14 LRVs, Spare Parts Inventory and Special Tools
Production of the ION LRVs will begin 2015 and the delivery of these vehicles to the Region will start in 2016 www.rideION.ca
ION LRT operations ION runs in its own rapidway Proof of payment system Frequency Every 8 minutes (during rush hour) Every 10-15 minutes (rest of the day)
Predictive transit signal priority Service pre-empted by emergency vehicles Ballasted track
Embedded track www.rideION.ca
Cross Section: Centre-Running
Cross Section: Centre-Running
Cross Section: Side-Running Cross Section: Side-Running
Cedar and Charles Streets
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Questions
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Why DBFOM Numerous implementation options reviewed: • Design-Bid-Build (DBB); • Design-Build (DB); • Design-Build-finance (DBf); • Design-Build-Operate-Maintain (DBOM); • Design-Build-Finance-Maintain (DBFM); and • Design-Build-Finance-Operate-Maintain (DBFOM).
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Why DBFOM DBFOM preferred because: cost: Lower cost over the term of the agreement. experience: The private sector has more experience than the Region in designing, constructing, operating
and maintaining an LRT system. incentives: Payments and penalties based on performance during construction and operations and maintenance. If the private company does not perform to the standards set in the contract, it would not get paid; risks: Risk allocated to party best able to manage it.
coordination risk: Having the same company responsible for operations and maintenance of the system
avoids finger pointing. The Region only needs to ensure problems are addressed and is not concerned whether it is caused by operations or maintenance. This also applies during the commissioning phase where there is significant coordination between the builder and the operator flexibility: Allows for early termination of the agreement to facilitate seamless transition to operation and maintenance of Stage 2, and; funding contributions: Use of the DBFOM option supported by provincial and federal staff.
Council approved DFOM approach February 2012
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Public private partnership roles The Region will: • • • •
Own the LRT infrastructure and vehicles Establish schedules and fares Monitor overall system performance Provide integrated customer service
Private Partner (GrandLinq) will: • • • •
Design and construct the LRT system Operate ION – to the Region's plan Maintain the ION LRT vehicles and system Provide short and long-term financing
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Procurement Process Request for Qualifications Seven submissions Evaluated and Short listed to three Request for Proposals Only to three shortlisted teams Technical and Commercial meetings with Region staff and consultants and each shortlisted team Teams developed proposals technical and financial Proposals evaluated based on rigorous scoring process including separate evaluation of financial and technical aspects Team with highest financial and technical recommended to Council Council approved GrandLinq as the preferred team in March 2014 Financial close (finalized contract) occurred in May 2014
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About GrandLinq Plenary: one of Canada’s largest Public-Private Partnership developers Gold Coast Rapid Transit, Australia (DBFOM), $1.07 billion
Meridiam: major international infrastructure investor
Montpellier High Speed Rail, France (DBFM), $2.32 billion
Aecon: Canada’s largest publically-traded construction company
Highway 407 ETR, Toronto (DBFOM), $2.5 billion
Kiewit: one of North America’s largest construction and engineering firms
Mid-town Tunnel, New York (DBFOM), $2.9 billion
Keolis: world leader in public transit operations
Gold Coast Rapid Transit, Australia (DBFOM), $1.07 billion
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Questions
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Capital Costs of the Project ($ in millions) Project Component LRT Project DBFOM LRT Intersecting projects, utilities, and betterments Total DBFOM construction (incl. net HST) Recoveries (area municipalities and Roads and Water capital budgets) Net DBFOM Total Non-DBFOM Vehicles Land Project Office & Consulting MTO Underpass construction Hydro One – Transmission line relocation Early Works and Other Infrastructure Non-DBFOM Total LRT Total aBRT Vehicles and Construction Contingency allowance Total
2014 Financial Close
$529.7 $61.0
$590.7 ($61.0) $529.7 $95.5 $42.3 $51.8 $11.2 $26.3 $29.3 $256.4 $786.1 $19.5 $12.4 $818.0
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Sources of Financing Source of Funding
Amount ($ in millions)
Regional Debentures
$104.5
RTMP Reserve
$ 17.8
GrandLinq
$130.7
Total Region Funding
$253.0
Government of Canada
$265.0
Government of Ontario
$300.0
Total
$818.0 www.rideION.ca
Regional Financing Long term financing through Regional debentures is $104.5M • $50M issued in May of 2013 for 30 yrs at 3.88% • $50M issued in March of 2014 for 30 yrs at 4.25% • $4.5M to be issued for aBRT vehicles in 2015 for 10yrs
Regional Transportation Master Plan (RTMP) Reserve • Construction costs of $17.8M funded over the construction period • RTMP funds debt repayment requirements and GrandLinq payments over 30 years • The RTMP Reserve is funded by the incremental tax levy increases between 2012 and 2019
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RTMP Funding Strategy APPROVED
RTMP Levy Impact Utilization of Savings from Provincial Uploading and Debt reduction Net RTMP Levy Impact
• •
FORECAST
2012
2013
2014
2015
2016
2017
2018
2019
1.50%
1.50%
1.25%
1.50%
1.50%
1.50%
1.50%
0.75%
0.54%
1.71%
0.86%
0.45%
0.47%
0.40%
0.38%
N/A
0.94%
-0.21%
0.39%
1.05%
1.03%
1.10%
1.12%
0.75%
As noted on the previous slide, the operations of the LRT are to be funded by property taxes Annual tax increases are offset by utilizing savings from Ontario Works uploading and the retirement of debt on two administrative buildings
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GrandLinq Financing The Region will withhold payment on the first $130.7M or 22.5% of construction. GrandLinq is required to finance $130.7 M over the 30 year period through long term debt and equity The capital costs withheld by the Region will be paid over the 30 year operations period
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Project Expenditure Profile ($ in millions)
400 350 300 250 200 150 100 50 0
aBRT Non DBFOM DBFOM
Estimated Costs to December 31, 2014
Budget 2015
Budget 2016
Budget 2017
Budget 2018
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GrandLinq Contract Highlights Council approved the selection of GrandLinq as the preferred consortium in March 2014 Commercial Close achieved on May 6, 2014 Financial Close achieved on May 9, 2014 • Total construction cost $590.9 M (including net HST) • GrandLinq contributes $130.7 M in debt and equity which will be paid to GrandLinq over 30 years • The Region will begin paying the 33 monthly milestones once GrandLinq has reached Milestone 0 (the contribution of $130.7M)
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2018 Operating Budget Estimate
Project Component
Operating Budget
Notes
Annual Revenues Property tax
Ridership Advertising
Total Annual Revenues
$35.03 Property tax is calculated for 2019 based on tax rate increases to date, 1.5% for 20152018 and 0.75% for 2019 $9.05 Based on ridership from the Environmental $0.25 Project Report and advertising estimates based on experience with Grand River Transit $44.33
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2018 Operating Budget Estimate Project Component Annual Expenditures Allocation to Cambridge transit supportive strategy GrandLinq Debt & general Operating Maintenance Lifecycle Insurance Sub-total Region (Debt servicing) aBRT ($4.5 m) RT ($100 m) Sub-total Region (Operating) aBRT RT Division Traction power & utilities Sub-total Total Annual Expenditures
Operating Budget
Notes
$1.00 Funding for 10 years to 2022. Annual spending plans are approved by Council. Contract costs post financial close as described in the previous $10.63 slide subject to inflation (operating, maintenance, lifecycle and $4.43 insurance) and experience rating (insurance) $4.97 $7.28 $1.87 $29.18 Principal and interest costs based on actual costs for $50 m issued $0.55 in May 2013, and estimated costs for $50 m debenture issue in $5.97 March 2014 and $4.5 m debenture issue in 2015 $6.52 Cost estimates based on GRT operating costs for aBRT, and $3.70 estimated costs for traction power and utilities and staffing $1.64 required in 2018. $2.29 $7.63 $44.33
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Questions
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Project office and Consultants Project office includes • 24.6 FTEs from all project disciplines including engineering, planning, finance, procurement, and legal • General operating costs of the office
Key consultants Consultant
Service
Parsons Brinkerhoff Halsall Incorporated
General Engineering Consultant (GEC)
Infrastructure Ontario
Commercial Procurement Lead
Norton Rose Fulbright
External Legal Counsel
Deloitte
Financial Consultants
Altus Group
Independent Certifiers www.rideION.ca
Property Acquisition Six phases of takings consisting of approximately 158 properties along the alignment 131 properties from Phases 1-4 have been expropriated or acquired through negotiated settlements Phase 5 consisting of 19 properties was approved by Council on December 16, 2014. Expropriation process should be complete spring of 2015. Phase six is currently being refined with final design www.rideION.ca
Hydro One Report E-14-008 Hydro One Transmission Line Relocation from Courtland Avenue to Fairview Park Mall approved January 7, 2014 • Hydro One is completing the work required to bury the overhead hydro lines in the corridor from Courtland Avenue to the Fairview Mall LRT Stop • Estimated costs are $26.3M • Work is under way and will be completed in 2015 www.rideION.ca
MTO Overpass Report E-13-022 Conestoga (Highway 7/8) LRT Overpass Construction was approved July 22, 2013. • MTO has contracted with Dufferin Construction to complete the Hwy 7/8 underpass work on behalf of the Region. • Estimated construction costs are $11.2M • Work to be completed by January 2015 www.rideION.ca
Early Works Early Works includes relocation of the following utilities: • Municipal Hydro Utilities – Report E-14017 • Estimated Regional cost sharing : $8.4M Kitchener Waterloo Hydro, $4.3M Waterloo North Hydro
• Kitchener Utilities - Report E-14-038 $2.0 M • Huron Park and Guelph Subdivision at King Street • Estimated costs $7M • Currently in design phase • To be tendered by Canadian National Railway summer 2015
• Various communications moves including; Bell, Rogers and Telus
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aBRT Report F-14-084 awarding the tender to Steed and Evans was approved June 25, 2014 • Incorporates roadway improvements including queue jump and receiving lanes • Will provide aBRT stops at three locations along Hespeler Road and the Ainslie Street Terminal • Estimated costs $5.7M • Construction is underway and will be completed spring of 2015
8 New buses will be purchased in 2015 Working with GRT and Cambridge Mall to design new stop at the mall www.rideION.ca
Questions
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How ION is built 1.
Temporary work (clearing and grubbing) Impact: rolling lane closures or restrictions
2.
Utilities construction (water, sanitary, etc.) Impact: full road closures
3.
LRT trackway and trackway structures built Impact: rolling lane closures or restrictions as well as short-term intersection closures
4.
ION stops are built Impact: rolling lane closures or restrictions as well as short-term intersection closures
5.
Electrical wires to power the train placed Impact: rolling lane closures or restrictions as well as short-term intersection closures
6.
Vehicle testing
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During construction Safety is core to everything during construction Access for emergency services and businesses/residences will be maintained Temporary relocation of some GRT bus stops Temporary sidewalk closures near active areas; signs will redirect pedestrians to alternative routes Any trees removed that are greater than 100 mm in diameter at breast height will be replaced two for one (2:1)
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Working with the community Meeting with businesses to understand delivery schedules and minimize disruptions Construction Liaison Officer on-site Way-finding signage to direct customers and visitors Parking postcards to direct customers to easy parking locations throughout construction Working with businesses to understand concerns and drive solutions Speaker Series to inform and engage the public in community building
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Construction-focused tools www.rideION.ca @rideIONrt
[email protected] 1-844-625-1010 Facebook.com/rideion
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Community engagement
Community input and public engagement is a critical part of ION
Between 2006 and 2011, the Region hosted more than 150 public outreach events for rapid transit
In 2014, ION staff reached more than 10,651 residents through community activities and events These events included: neighbourhood association meetings, the ION vehicle event in Downtown Kitchener, BIA networking events and a wide-range of community presentations/speaker series
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2015 aBRT milestones aBRT service begins Improvements to the Ainslie Street transit terminal completed ION stops on Hespeler Road completed Pinebush, Cambridge Centre Mall, Can-Amera and the Delta
Planning for Stage 2 ION LRT Public engagement on the final route and design specifics
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2015 community milestones ION LRT stop designs Follow-up to 2013 engagement Public input on stop names and specific design elements
Community engagement On-going stakeholder meetings with businesses and residents ION awareness events and activities Community partnerships
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2015 construction milestones 2015 ION LRT construction All areas along the 19 km route will see work First ION railway track placed
King Street grade separation Hydro One construction near Fairview Park Mall
ION Operations, Maintenance and Storage Facility (OMSF) www.rideION.ca
Questions
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