Stage 2 Light Rail Transit

Implementation

Project Definition and

Proposed Procurement Plan

Transportation Services Department

February 17, 2017

 Report Overview

The report outlines three key areas to guide the

City toward the successful procurement and
implementation of the Stage 2 LRT Project:

1. Expanding Stage 2 LRT;

2. Procuring Stage 2 LRT; and,

3. Implementing Stage 2 LRT.

1
Expanding the Stage 2 LRT Project

2
 Funding Status

Provincial contribution:
June 2016, Treasury Board granted funding request:
Up to $1 billion of Stage 2 costs; and,
50% of capital costs for Trim and Airport.
City awaiting formal green light letter to finalize a
subsequent Contribution Agreement
Federal contribution:
Initial, enabling works funded via Public Transit
Infrastructure Fund (PTIF); and,
Funding commitment to follow the release of Phase
2 of PTIF and the Green Infrastructure Fund.

3
 Core Stage 2 Program
Confederation Line East:
Blair to Place dOrlans: 9km and 4 stations
Confederation Line West
Tunneys Pasture to Bayshore and Baseline:
13km and 10 stations
Trillium Line Extension
Trillium Line: 8km and 5 stations

Total: 30km and 19 stations

4
 Expanding the Stage 2 LRT Project
The report recommends the following additional
extensions:
Trim Extension extending Confederation Line East from
Place dOrlans to Trim
Conditional on 100% provincial and federal funding;
Airport Rail Link additional Trillium Line extension from
South Keys to the Ottawa Airport
Conditional on 100% provincial and federal funding and an
MOU with the Airport Authority; and,
Moodie Extension extending Confederation Line West
from Bayshore to Moodie, and a potential MSF
To be included within core budget, may be subject to de-
scoping.

5
 Trim Extension

3.5km extension farther east to Trim Station

New Trim Station
New interchange at Trim Road
Provision for 3 additional future stations

6
 Airport Rail Link
4km branch line connecting at
South Keys Station
Two new stations: Uplands (EY
Centre) and Airport (with direct
connection to terminal)
Transfer at South Keys (2
transfers to downtown)
Installing infrastructure to
protect for direct Bayview
service

7
 Moodie Extension and MSF

2.3km extension
farther west to Moodie
New Moodie Station
Potential for a new
MSF, in lieu of the
Woodroffe and
Baseline sites
If approved, EA
amendment required

8
 Bundled Projects
July 2015, Council directed staff to identify potential
bundling opportunities
Report recommends bundling:
Highway 417 Expansion Project (Maitland to 416);
Selected City infrastructure projects; and,
Highway 174 Ultimate Configuration (Montreal Rd. to
Jeanne dArc Blvd.).
Benefits of bundling: coordination of work,
economies of scale, fixed price, risk transfer, and
schedule alignment certainty
Final list of bundled projects would be confirmed
when staff comes back with a recommended
preferred proponent
9
Procuring the Stage 2 LRT Project

10
 Unique Procurement

With any procurement Citys goal is to get as much

competition as possible
City is faced with unique procurement challenges:
The incumbent, RTG, possesses potentially
insurmountable advantages from their control of the
Belfast MSF and maintenance of the 34
Confederation Line vehicles; and,
Interface between two potential vehicle and
maintenance providers could create complexity,
accountability gaps, and deterioration of risk transfer
achieved on Confederation Line.
11
 Procurement Imperatives

Maintain the advantages, risk transfer, and

accountability for performance achieved through
the Confederation Line procurement

Ensure a well-participated, fair and competitive

procurement to produce excellent pricing and value
for the City

12
 Procurement Objectives

Procurement analysis objectives:

1. Maximize system functionality and operability;

2. Single point of accountability for service availability;

3. Meet capital budget and minimize maintenance

and operating cost of the Stage 2 LRT Project;

4. Access efficiencies of existing system; and,

5. Set conditions for optimal risk transfer.

13
 Proposed Procurement Solution
1. MOU with RTG
Limited extension to Confederation Line scope (in areas
contemplated by existing contract)
2. Confederation Line East and West Extensions
Design Build Short-Term Finance (DBF) competitive
tender;
RTG, via MOU, to provide maintenance services; and,
RTG will not compete.
3. Trillium Line Extension
Design Build Finance Maintain (DBFM) competitive
tender; and,
RTG is permitted to compete.
14
 Fixed-Price MOU with RTG
RTG MOU Scope Negotiated
Cost
38 Stage 2 LRT Vehicles
Belfast Yard MSF Expansion
Communications Equipment
$492M
Construction Oversight
Procurement Support Services
Maintenance, mobilization and latent defect risk
Remaining Works Estimated
Value
Confederation Line East and West Extensions $2488M
(including Trim, Moodie MSF and Hwy Widening)
Trillium Line Extension $535M

15
 Proposed Procurement Solution
This negotiation, which focused on extracting
efficiencies from RTG achieved real savings for the
City below
Original Bid Negotiated Price
Price
Per Vehicle ~$10M ~$8.9M
Per Km Vehicle Maintenance $2.45 $2.27
Per km infrastructure maintenance $1.40M $1.02M

Improved maintenance pricing to apply to the whole

system

16
 Confederation Line Extensions
Design, Build, Finance (DBF)
Confederation Line Extensions: Design Build Finance (DBF)

Confederation Line Extension Scope RTG Scope

28km of track and 3-km tunnel 38 Citadis vehicles

16 stations Belfast Yard MSF expansion
Installation of train control systems Communications equipment
417 Highway Widening and City Procurement and construction oversight
bundled projects
Civil, vehicle maintenance and lifecycle
Short term financing costs, contingency,
property, preliminary engineering, staff
support, etc.

$2,488M (Capital) $492M (Capital)

17
 Trillium Line Extension
Design Build Finance Maintain (DBFM)

Trillium Line Extension: Design Build Finance Maintain (DBFM)

Trillium Line Scope

Existing 8km and 5 station upgrades

Construction of additional 11km track and 7 new stations

City bundled projects

Procurement of additional diesel multiple units (DMUs)

Contingency, property, cost of short-term financing and equity placement

$535M (Capital)

18
 Revenue Service Schedule

Stage 2 LRT Project Extensions Revenue

Service Date

Trillium Line Extension 2021

- Including Airport Rail Link

Confederation Line East Extension 2022

- Including Trim Extension

Confederation Line West Extension 2023

- Including Moodie Extension

19
 Stage 2 Budget: July 2015

$s Escalated to
Element
Time of Spend
Stage 2 Extensions (Confederation East and West, Trillium $ 3 000 000 000
South, Moodie Extension)
Airport Rail Link (federal/provincial) $ 155 000 000
Trim Extension (federal/provincial) $ 160 000 000
Subtotal $ 3 315 000 000
Additions
Highway 417 (federal/provincial) $ 200 000 000
Bundled Projects (City) $100 000 000
Revised Total $3 615 000 000

20
 Current Budget
$s Escalated to Time
Element
of Spend
Confederation Line Extensions (with Moodie and $2 488 000 000
Trim Extensions, and Highway 417)

RTG Capital Scope $492 000 000

Trillium Line Extension $535 000 000

Bundled Projects $100 000 000

TOTAL $3 615 000 000

Staff will implement an affordability cap to ensure the project

stays on budget, as was done on the Confederation Line

21
 Key Report Recommendations
That Council approve:
1. Alignment changes and refinements as outlined in
report;
2. Expansion of Stage 2 to include Trim, Airport and
Moodie & MSF Extensions;
3. Bundling of City Projects and Hwy 417 Widening;
4. Approve execution of MOU with RTG;
5. Approve Confederation Extensions procured as
DBF and Trillium as separate DBFM; and,
6. Other authorities required, including for property
acquisition.
22
QUESTIONS?

23