HomeMy WebLinkAboutCS 30-04EXECUTIVE CO 'iM TTEE
Report Number: CS 30-04
Date: August 26, 2004
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Ontario Transit Vehicle Program - 2'.004 Request for .Allocation of Funds
Recommendation:
1. That Report CS 30-04 be received for information and that:
Council approve the application for Provincial subsidy funding as directed in the
Ontario Transit Vehicle Program (OTVP) guidelines for 2004;
Council approve the (OTVP) application for the eligible expenditures as
approved in 2004 APTA Budget and the Treasurer be authorized to make any
changes to the OTVP application or undertake any actions necessary in order to
ensure the application process is complete; and,
the appropriate officials of the City of Pickering and the Ajax Pickering Transit
Authority be given authority to give effect thereto.
Executive Summary: This year the Provincial Government has changed the name
of the transit vehicle subsidy program from the Ontario Transit Renewal Program to
Ontario Transit Vehicle Program or OTVP. Beside the name change, the Province has
also introduced subsidy funding for fleet expansion. The OTVP is designed to provide
up to one-third subsidy funding for: replacement transit vehicles, major refurbishment
of ageing municipal transit vehicles and for fleet expansion. The City has recently
received the application forms and information package from the Province and it is our
understanding that the application should be forwarded to the Ministry by September
30, 2004. The application must be approved by the municipal Councils and the Council
of the Town of Ajax will be passing a similar Resolution.
Financial Implications: In 2002 and 2003, APTA had applied to the Province for
one-third subsidy funding for the purchase of replacement vehicles and for major transit
vehicle refurbishments. To-date, the Province has provided funding to the Town of Ajax
and the City of Pickering for a total amount of $1,090,855 for APTA. For the years
Date: August. 26, 200~
Program - 200,~ F. eauest for Aiiocation :age 2
2002 and 2003, APTA has received subsidy fun,ding for 7 bus refurbishments and 11
transit vehicles: (6 conventional and 5 specialized vehicles.)
Under the Ontario Transit Vehicle Program, APTA's eligible renewal expenditures are
based on the following APTA Board and Council approved 2004 capital budget items:
Rep. - 1985 Orion
Bus¢2040 $567,000 $188,811 $378,189
Rep. - 1986 Orion
Bus¢2039 567,000 188,811 378,189
Mid-life Bus Refurb.
1992 Orion¢2018 50,000 16,650 33,350
Mid-life Bus Refurb.
1992 Orion¢2017 50,000 16,650 33,350
Mid-life Bus Refurb.
1992 Orion¢2016 50,000 16,650 33,350
Rep.- 1995 Ford
CTV¢9010 (Special) 100,000 33,300 66,670
Rep. - 1995 ELF
125¢9007 (Special) 100,000 33,300 66,670
Rep- 1997 Ford
CTV¢9006 (Special) 100,000 33,300 66,670
TOTAL $1,584,000 $527,472 $,1056,428
Based upon the above, APTA is asking the Province to provide funding in the amount
of $527,472. Approval of the above Recommendations will provide the necessary
authority for APTA to apply for the Ministry of Transportation subsidy funding. (The
remaining net capital costs for the projects listed above are included in APTA's 2004
Capital Budget and are funded equally by the Town of Ajax and City of Pickering).
Background: The Provincial Government recently announced, in its 2004 budget,
a commitment of $448 million in funding for the Ontario Transit Vehicle Program
(OTVP) for this year. Through the OTVP, the Province will provide funding of up to
one-third of the eligible capital costs incurred by municipalities to replace or refurbish
ageing transit vehicles or to purchase new vehicles to expand their transit fleets to
increase ridership and reduce gridlock.
The Provincial Government has not yet established 2004 funding allocations for
individual municipalities, however, in order to be eligible to claim 2004 funding, the
OTVP - Guidelines and requirements require municipalities to first submit a "Request
for an Allocation of Vehicle Program Funding" based on 2004 budgeted expenditures
supported by a Council resolution.
in APTA's situation, both the Town of Ajax and the City of Pickering Councils must pass
resolutions supporting APTA's OTVP application.
Attachments:
1. Correspondence from Ministry of Transportation
Prepared By:
?
Stan Karwowski
Manager, Finance & Taxation
GAP:vw
Attachment
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Coun' ~
Thomas J. Quinn, Chief Administmt. Lye Officer
Approved / Endorsed By:
Gillis A. Paterson
Director, Corporate Services & Treasurer
?erguson 3Jocx. 3rc
77 Wellesley St. 7~!est
(416) 327-g200
..,, .~ ¢ ~f~
His Worship David Ryan
Mayor
City of Picketing
I The Esplanade
Picketing, Ontario
L!V 6K7
~difice 7ergusom 3e
77. rue Wellesley ouest
:oron~o (On~ario~
M7A !Z8
(416) 327-9200
Dear Mayor Ryan: ....... -: ..... , ~
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..... : v .,.:':::--?--~ F¥~r.*~ ~
Increasing transit ridership is a priority for the Ontario~government That's why the
province has committed $448 million for transit capital in its 2004 budget. With this
commitment, municipalities can improve andeXpand their transit services to increase
ridership, reduce gridlock and build stronger communities.
I am pleased to advise you that the Ontario government is now confirming the first
component of its 2004 transit capital program for conventional transit as well as for
specialized transit services for persons with disabilities.
Through the 2004 Ontario Transit Vehicle Program (OTVP), the province will provide
funding of up to one;third of eligible capital costs incurred by municipa'lities to renew or
refurbish transit vehicles, or purchase vehicles to expand their transit fleets. The
government will require all vehicles that are funded to be fully accessible and meet all
safety standards.
This program improves upon the previous program in providing funding to help
municipalities expand their transit fleets to grow ridership and provide a viable
alternative to the automobile.
In addition, the OTVP will provide incentive funding to municipalitieslthat acquire
alternately fuelled vehicles that reduce emissions, which contribute t6 smog and global
warming
,,
There' will be further announcements on future funding for transit vehicles and further
ridership incentives for municipalities following upcoming consultations with
municipalities on sharing provincial gas taxes. The Ministry. of Transportation (MTO)
will aiso continue to work with transit operators on new approaches to transit veh~icie
procurement and financing to heip accelerate the replacement and expansion of
munidDai transit fleets.
As well, details about other transit capital programs addressing province-wide
investments in transit related technologies and infrastructure will be announced later to
ensure consistency with the government's approach with "Places to Grow: Better
Choices, Brighter Future," a GTA Transportation Strategy and the creation of a Greater
Toronto Transportation Authority.
Staff from MTO's Transit Policy and Programs Office will be in contact with transit staff
from your municipality concerning necessary reporting and the financial payment
process.
Thank you again for your commitment to improving public transit services within your
municipality.
Sincerely,
Harinder S. Takhar
Minister
c: Wayne Arthurs, MPP, Pickering-Ajax-Uxbridge