POLICY REPORT

Date: March 14, 2000
Author/Local: J. Bird/6694
RTS No. 1332

CC File No. 5559

CS&B: March 16, 2000

TO:	Standing Committee on City Services and Budgets
FROM:	Project Manager of Rapid Transit Office, in consultation with the General Manager of Engineering Services, the Director of City Plans and the Director of Current Planning
SUBJECT:	Phase 2 Rapid Transit - Commercial Drive West; Public Process

RECOMMENDATION

A. THAT Council receive this report and refer RECOMMENDATIONS B THROUGH E to the Special Council Meeting on March 27, 2000 to hear delegations from the public.

B. THAT Council recommend to the Province and TransLink that SkyTrain continue west from VCC, via the False Creek Flats (in a tunnel generally under Prince Edward Street and 10th Avenue), to Granville Street, as part of the present construction program, with a rapid bus connection to UBC.

C. THAT assuming the Province and TransLink agree to extend SkyTrain to Granville in accordance with RECOMMENDATION B, staff be instructed to discuss with TransLink a further SkyTrain extension from Granville to Arbutus and report back to Council as to the outcome of those discussions.

D. THAT staff meet with the Province and TransLink to establish a process for the westerly extension and report back on a work program and budget to participate in the design of this extension, including a plan for public realm improvements on Broadway with a view to implementing those improvements concurrently with construction of the SkyTrain extension, thereby realizing any economies, with any additional improvements to be considered for the City Capital Plan Program.

E. THAT staff be instructed to meet with TransLink to discuss planning for a north-south rapid transit line between Richmond and downtown and, following these discussions, report back on a work program and budget.

CITY MANAGER’S COMMENTS

The City Manager supports the Recommendations. Having reviewed the Phase 2 Report, staff’s commentary, the recommendation of the Phase 2 Consultant, the summary of the public consultation process, and the public survey results, there is strong and consistent support for SkyTrain to Granville, with a RapidBus connection to UBC. SkyTrain to Granville should be the City’s recommendation to TransLink and the Province. SkyTrain service in the Broadway Corridor, in particular to the key destinations at Central Broadway will benefit both the City and the region. The City Manager sees value in discussions with TransLink about a future extension to Arbutus and in working with TransLink to plan a north-south rapid transit corridor.

POLICY

As there is an extensive discussion of relevant land use and transportation policy in the report (See City and regional land use and transportation policy), it is not reproduced here.

PURPOSE

In early 1999 the City, in partnership with TransLink and the Province, retained a Consultant to study the rapid transit route and technology options for the Broadway corridor between the existing Broadway SkyTrain station, at Commercial Drive, and UBC. The results of the Consultant’s study are in a report called “Broadway/Lougheed Rapid Transit Line Phase II - Commercial Drive West” (the “Phase II Report”). In December 1999 Council received the report for information and instructed staff to take the report to the public for comment. The public consultation process concludes on March 27, 2000 with a Special Council Meeting at which Council will hear delegations.

In addition, TransLink and the Province have asked Council for its recommendation as to an end point for SkyTrain west of VCC.

The purposes of this report are:

? to review City and regional land use and transportation policy objectives as they relate to the Broadway Corridor and the technology and route options in the Phase II Report

? to report back on the results of the public consultation process

? to provide Council with the Consultant’s recommended technology and route option

?
to provide for Council’s consideration a recommendation to TransLink and the Province, for the purposes of the Cost Sharing Agreement, of a western end point for SkyTrain and a connecting technology to UBC

Staff intend for this report to be available before the Special Council Meeting, so that the public can speak to the Consultant’s recommendation and staff’s recommendations as set out in this report.

SUMMARY

Issues
? this report addresses the following decisions:

i. the preferred rapid transit technology for the Broadway Corridor from Commercial Drive to UBC; and
ii. the City’s recommendation to TransLink and the Province for a western terminus for SkyTrain on Broadway west of VCC

? the key sections of the report describe: relevant land use and transportation policy; the advantages and disadvantages of the technology options described in the Phase II Report; the recommendation of the Phase 2 Consultant; the results of the public consultation process; and the public survey results

? cost implications of the technology options are considered at some length, from both a City and regional perspective

Land Use and Transportation Policy

?City and regional land use and transportation policy support a rapid transit line in the Broadway Corridor

?the rapid transit line would serve existing employment and residential populations and connect and shape emerging high tech and bio-tech areas in Grandview/Boundary, the False Creek Flats and Central Broadway

?the City has particular aspirations for Central Broadway; it is the second largest employment centre in the region, larger than any regional town centre; it has the potential to be a significant medical/bio-tech precinct; rapid transit service will be a key to achieving City objectives

SkyTrain Terminus/Options
? the Phase II Report on rapid transit options for the Broadway Corridor sets out 6 technology options from Commercial Drive to UBC: RapidBus, Light Rail; 4 SkyTrain plus RapidBus options (each with a different termination points for SkyTrain: Main, Cambie, Granville and Arbutus, in each case with RapidBus to UBC)

Public Consultation
? during a public consultation process from January to date, staff and the Phase II consulting team heard strong support for the SkyTrain/RapidBus option, in particular for SkyTrain extending as far west as possible

? there is little public appetite for Light Rail, due to concerns about its impacts on other users; loss of curbside parking and increased congestion; these issues are of particular concern to merchants

? RapidBus received some support, but the predominant view was that additional buses contribute to, and suffer from increased congestion; buses are seen as an inexpensive, but short term solution; a more significant transit investment is needed

? MarkTrend Research conducted focus groups with merchants and a quantitative public survey of 500 residents; the results of the survey are consistent with the results of the City’s process

Consultant’s Recommendations
? the Phase 2 consulting team participated in the public process

? the Consultant recommends extending SkyTrain to Granville with a connecting RapidBus to UBC

? his primary reasons for recommending the option are: SkyTrain attracts high levels of ridership and does so with the least ongoing impacts on Broadway; it is popular with users and the community and offers the advantage of the extension of an existing system technology; extending SkyTrain to Granville serves the key destinations on Central Broadway and connects with the new “98B”, the committed north-south rapid transit service

Staff Commentary
? the report concludes that SkyTrain to Granville with a RapidBus connection to UBC is the preferred option; while all of the technologies serve the transportation objectives in the immediate term, over the long term rail attracts the ridership that will allow the City to achieve its transportation and land use objectives; while there are advantages to the Light Rail technology, there is little public support for Light Rail on Broadway and merchants are particularly concerned; there is strong public support for SkyTrain

? regarding the western terminus, it is very important that rapid transit serve Central Broadway, particularly the key destinations (City Hall and VGH); a Cambie terminus would serve less than half of the current and projected employees in the Central Broadway area; it would approach, but not reach, the second biggest employment centre in the region

? there are good reasons to consider a further extension of SkyTrain to Arbutus, and staff recommend pursuing those discussions with TransLink (as the Province does not participate in the cost of the Granville-Arbutus extension)

Cost and Cost Sharing
? the City does not fund rapid transit so the choice does not affect the City’s capital planning program; Vancouver residents are affected because they contribute to both TransLink and Provincial revenues

? the Cost Sharing Agreement between TransLink and the Province provides that the Province will contribute to SkyTrain technology only, not to the cost of Light Rail or RapidBus

? the Province will pay 67% of SkyTrain from VCC to Granville Street; TransLink will pay 33%; the cost of the extension from Granville to Arbutus would be fully funded by TransLink

? the Phase II study suggests that buses will only meet demand for 15 years; an economic net present value analysis concludes that if the cost sharing agreement is available in 15 years, there is a saving to TransLink to run RapidBus now, and build to Granville later, but the saving is not significant; if the cost sharing is not available in 15 years, there is a significant saving to TransLink in building to Granville now, versus running buses for 15 years and building then

The North-South Corridor
? staff recommend discussing with TransLink plans for north-south rapid transit line(s); the location of the north-south corridor is an important element of the overall plan for rapid transit in the region

BACKGROUND

Decision to Expand SkyTrain

In June 1998 the Province announced a major expansion of the SkyTrain system. The first phase is from New Westminster to Vancouver Community College (VCC) at Clark Drive in Vancouver. The first phase is commonly referred to as the “L - line”, shown in black on Appendix A.

The second phase of the SkyTrain expansion is in two sections: the first extends north from Lougheed Mall to Coquitlam; the second extends west in a tunnel under Broadway from Vancouver Community College to an undetermined terminus further west along Broadway in Vancouver. The first and second phases together are commonly referred to as the “T-line”. The second phase is shown in dark grey lines on Appendix A. The alternative alignments are shown in dashed lines.

The Province, through a company called Rapid Transit Project 2000 Ltd. (“RTPO”), has responsibility for the design and construction of the “T-Line”.

Construction of Phase 1 began in late 1999, and is expected to be complete in early 2002. Planning for the Lougheed Mall to Coquitlam section of Phase 2 is underway, with construction scheduled to begin in 2001. Planning for the western extension of Phase 2has been delayed pending the recommendation of the City and a decision by TransLink and the Province for the western end point for SkyTrain.

The Study

Council recognized that the proposed SkyTrain extension under Broadway would be a major transit investment, one that would have a profound impact on the future of the City. Council decided to undertake an independent review of the various route and technology options within the Broadway Corridor. Given that construction of Phase 1 was scheduled to be underway by the fall of 1999, the study was to assume Phase 1 of the SkyTrain extension, New Westminster to VCC, would be constructed as proposed. Accordingly, the focus of the study is the technology options which are available from the western terminus of SkyTrain Phase 1 at VCC, to UBC.

Although the Phase 1 SkyTrain extension terminates at VCC, Commercial Drive remains the key transfer point. For that reason the study defined the corridor as starting at Commercial Drive, rather than VCC.

In May 1999 City Council awarded a consultant contract to BRW, Inc., of Portland, Oregon. BRW is the lead consultant. UMA Engineering Ltd., Davidson Yuen Simpson Architects and Lloyd Lindley are members of the consulting team.

The objectives of the study were to:

1. Review the range of alignment and technology alternatives previously identified as candidates for implementation in the corridor and select a limited number of the more cost effective solutions for detailed investigation.

2. Conduct a thorough evaluation of a limited number of alternatives and provide findings and conclusions regarding the alignment and technology applications.

3. Identify opportunities to use each of the preferred alternatives to enhance the urban environment through which it would pass.

Council received the Phase II Report for information on December 14, 1999.

The Cost Sharing Agreement between the Province and TransLink

During the study, the Province and TransLink negotiated funding responsibilities for the SkyTrain extension proposed by the Province. Those negotiations resulted in an agreement in June, 1999, called the “Negotiators’ Agreement on Cost Sharing and Construction of SkyTrain Extensions”, commonly called the “Cost Sharing Agreement”.

The Cost Sharing Agreement provides as follows:

? TransLink will pay $650 million on the later of December 2005 or the start of revenue service on the Coquitlam extension

? the Province will pay for the SkyTrain “L-line”, from New Westminster to VCC and a portion of the “T-line” extension to Coquitlam

? in addition, the Province will pay 67% (TransLink will pay 33%) of the cost of SkyTrain Phase 2 (underground) from VCC to Granville Street so long as SkyTrain is the chosen technology; the Province will not pay for light rail or rapid bus

? any SkyTrain extension beyond Granville Street will be fully funded by TransLink

The Cost Sharing Agreement provides that the Province and TransLink, in consultation with the City, will make good faith best efforts to determine by March 31, 2000 the western end point for the proposed SkyTrain extension. TransLink and the Province will make the final decision. They have asked the City for its recommendation.

The Public Consultation Process

At its December 14 meeting, Council approved a public consultation process to take place between January and March 2000. The objectives were to inform the public about the Consultant’s report and seek their input on which technology they preferred for Broadway and why. The results of the public process are included in the Discussion (see PUBLIC CONSULTATION RESULTS, later in the Report).

The consulting team played an active role in this process. They presented their report, and along with staff, answered questions and listened to feedback. They considered publicinput in their final recommendation, which is included as part of this report under the Discussion (see CONSULTANT’S RECOMMENDATION).

DISCUSSION

The discussion portion of this report is organized into six parts:

1. Summary of City and regional land use and transportation policy
2. Review of various technology options and their ability to achieve policy objectives
3. Public consultation results
4. Consultant’s recommendation
5. Cost
6. City recommendation to TransLink and the Province

1. City and regional land use and transportation policy

Fixed rail corridors have the capacity to both serve and shape land use and transportation networks.

Land Use Policy

Connecting High Tech and Bio-Tech nodes

Council has already made the decision to use Phase 1 of the SkyTrain extension to shape industrial land uses in the Grandview-Boundary and False Creek Flats areas. The I-3 (High Technology), zoning and policies encourage new forms of industry to locate in the City. This could provide, as a conservative estimate, over 10 million square feet of high tech work space or upwards of 50,000 jobs in these two areas. For example, the Finning site, rezoned earlier this year, will be the home of a significant mixed use technology park. Assuming Finning pursues its development program, this park may attract 10,000 jobs over the next 10 years.

If the SkyTrain extension extends north to False Creek Flats and west to Arbutus it will link three high technology areas -- Grandview-Boundary, False Creek Flats, and the Central Broadway bio-tech area. It will also serve riders from both the suburbs and inner city (Kitsilano, Fairview, False Creek) who will work in these new employment areas. Connections to the existing rapid transit network and to an eventual north-south rapid transit line will serve Downtown and West End riders. Improved connections to UBC will serve that large student and employment destination.

Central Broadway - Existing Residential and Employment Population

The new SkyTrain extension will serve a significant existing employment and residential base. Unlike Burnaby, Vancouver already has existing population, jobs, and zoning capacity along the proposed SkyTrain extension. 46,200 people currently live within 500 metres of the proposed stations between Commercial and Arbutus. This is roughly the same as the population of Port Coquitlam, and larger than municipalities such as North Vancouver, West Vancouver, or Port Moody. By 2021 projections for the Corridor between Commercial and Arbutus suggest that 90,000 people will be employed within walking distance of stations.

Central Broadway in the Future

Central Broadway is the second largest employment centre in the region. It is larger than any regional town centre and, based on past performance, will remain so. By 2021, projections for Central Broadway suggest a population of 60,000 people and 75,000 jobs. Appendix B describes the employment projections for Downtown, Central Broadway and the False Creek flats in the context of other regional town centres.

Central Broadway is and will continue to be a key destination within the region. The City Transportation Plan projects that in 2021, 41,000 peak period trips will terminate in Central Broadway, about one third of the number going downtown. In terms of specific employers, City Hall and VGH are key regional destinations. 35% of people employed by the City live outside Vancouver in parts of the region through which the new SkyTrain extension will pass. About 40% of VGH employees (including those living on the east side of Vancouver) will find transit access to the hospital easier if rapid transit serves the VGH site.

In terms of planning policy, Central Broadway is a key element in the City’s efforts to develop the business and medical high tech communities in Vancouver:

? it is uptown - an area that can take the overflow from downtown when it reaches capacity*, and one that offers choice for businesses that do not need to be downtown or would prefer not to be downtown, but would like to be close

* estimates are that the downtown is at approximately 75% of build-out with room for about 45,000 additional jobs, whereas uptown is at approximately 50% of build-out, with room for about 40,000 additional jobs

---

? it’s the centre of an existing medical precinct delivering health care services on a local and regional basis and is a centre for emerging medical technology companies

? it is proposed that the VGH precinct would be the home of a significant medical/bio-tech research and development facility; the initial public consultation for this proposal is underway now

Transportation Policy

Transportation policy and land use policy are symbiotic. They can be mutually supportive of each other and each can and should be used to achieve the other’s objectives. This is certainly the case for the Broadway Corridor.

Transportation policy supports both the existing activity and the growth potential along the Broadway Corridor. Transport 2021, the regional transportation plan, the City’s Transportation Plan, and most recently the TransLink draft Strategic Transportation Plan all identify Broadway as a rapid transit corridor.

Extending SkyTrain along the Broadway Corridor to Granville provides an opportunity to build a network of rapid transit services across the City. The Broadway line will link Central Broadway and UBC with the eastern suburbs. A future extension of the line to Arbutus provides an opportunity to link the neighbourhood centres (like Kerrisdale and Marpole), and possibly Richmond through a north-south corridor. North-south rapid bus on Granville can be connected with a proposed east-west rapid bus on 41^st Avenue. The possibility also remains for a north-south transit corridor along Cambie which could link Downtown with Central Broadway (City Hall and Vancouver Hospital), Women’s and Children’s Hospitals, St. Vincent’s Hospital, Oakridge, and George Pearson Hospital, and, again, possibly Richmond.

In summary, both regional and local transportation plans dating back 20 years have identified Broadway as a rapid transit corridor. Rapid transit is key to the City’s objectives for Cental Broadway as a second downtown and an emerging medical/bio-tech precinct. Without rapid transit, the City is unlikely to achieve its aspirations for the new high tech and bio-tech nodes.

2. The study, the technology options and their ability to fulfill the policy objectives

Until the decision by the Province in June 1998 to expand SkyTrain, the regional and City planning for rapid transit described above had contemplated a light rail system, rather than SkyTrain, within the Broadway/Lougheed corridor. At that point, the question then became: having extended SkyTrain part way along the Broadway/Lougheed corridor to VCC, should the rapid transit technology for the rest of the corridor be light rail, or SkyTrain, or rapid bus or a combination of technologies?

The Consultants evaluated the three rapid transit technologies from Commercial Drive to UBC. They considered 6 options for the corridor:

1. rapid bus from Commercial Drive to UBC
2. light rail transit from Commercial Drive to UBC

SkyTrain (in a tunnel) plus RapidBus in four variations:

3. SkyTrain to Main, RapidBus to UBC
4. SkyTrain to Cambie, RapidBus to UBC
5. SkyTrain to Granville, RapidBus to UBC
6. SkyTrain to Arbutus, RapidBus to UBC

Note that all of these options were predicated on the presence of SkyTrain to VCC. Had the Province not extended SkyTrain to VCC, the options for the Corridor may well have been different.

The characteristics of the technology and the stops/station locations for each option are described in Appendix C. The options were evaluated against the following criteria:

? Financial: capital; operating and cost effectiveness
? Customer Service: ridership and connectivity (ease of transfers)
? System Operation: system performance; system flexibility, reliability and expandability
? Consistency with regional plans and policies
? Contribution to pedestrian and bicycle environments
? Urban Design and Land Use: ability to generate positive land use changes; effects of construction
? Environmental/Community impact: contribution to clean air and noise environments; effects on vehicular traffic

The complete Phase II Study has been presented to Council (Council Report dated December 14, 1999). Copies are available at the City Clerk. For this report, we have summarized the primary advantages and disadvantages of the options.

RAPID BUS

LIGHT RAIL

SKYTRAIN + RAPID BUS*

*in summarizing the advantages and disadvantages for this technology combination, we have not distinguished between the 4 different endpoints for SkyTrain; SkyTrain’s advantages increase significantly the further west it goes.

3. Public consultation

The City engaged in an intense public consultation process, beginning with a Kick-Off Open House/Symposium on January 19, and culminating with a Special Council Meeting on March 27.

Objectives

Staff prepared a public consultation plan for the process. Its primary objectives were:

1. to inform the public about the Phase II Report and the existence of the Cost Sharing Agreement; and

2. to seek feedback on the options.

Involvement of the Consulting Team

At the City’s request the consulting team were actively involved in the public consultation. At all events, except the on street “tent events”, members of the consulting team formally presented the Phase II report and took questions and comments.

A detailed account of the public process is contained in Appendix D. In addition, all comments and questions have been recorded and compiled in a binder that is available for viewing.

Events

The events were well attended. Over 700 people viewed the display information, asked questions, commented or participated in workshops and open houses. The events varied in style, and in the nature of the participation:

? 4 Open/Houses: presentation of material on display boards, with staff and consultants available for questions/ followed by presentations and a facilitated group question and answer session

? 3 Workshops: 4 hour facilitated sessions; participants worked in small groups with staff and members of the consulting team

? 4 On Street “Tent Events”: tents on the sidewalk with display boards and staff in attendance to answer questions

? Special Presentations: civic committees, community groups and key stakeholders (eg VCC, VGH, UBC, the Airport) received letters outlining the process; staff presented the report to several groups including the Board of Trade, Vancouver City Planning Commission, VGH, Grandview Woodlands Area Council and COMPACT (Committee to Promote Accessible Conventional Transit)

? 1 Wrap Up Open House: an open house at which themes that had emerged during earlier events and in comment sheets were presented

? MarkTrend Research

4 Merchant Focus Groups: MarkTrend Research held focus groups of merchants and businesses along the corridor, from Commercial Drive to UBC; this was qualitative research, designed to identify the range of views held by merchants; a summary of the focus groups is included in Appendix D.

Public Opinion Survey: MarkTrend Research distributed material and conducted follow up telephone surveys with 500 randomly selected Vancouver residents, with some over sampling along the Broadway Corridor; the Executive Summary of their report is included as part of Appendix D.

City Events

Below, in no particular order, are the main themes expressed during the events and by fax and E-mail.

? Don’t delay - we need better transit service now. Whatever transit investment you’re going to make, get on with it.

? We need efficient rail transit - (i.e. more comfortable, smoother ride, reliable, fast, less crowded) if we want people to use transit.

? Extend SkyTrain West -if we have SkyTrain to Vancouver Community College, continue with SkyTrain as far west as possible; of the four possible endpoints for SkyTrain, Arbutus was by far the preferred terminus, and there was noticeable support to continue SkyTrain to UBC.

? Don’t Penalize Other Road users - put transit below ground to reduce impacts on Broadway.

The contrary argument was also expressed, but it represented the minority view: surface rail is better, precisely because it reduces road space for cars - we should be taking away roadspace for motorists, discouraging car use.

? Cost is not as important as other criteria - reliability, long term capacity, impact on neighbourhoods and impact on other users were seen as more important.

? Crime and safety with SkyTrain is a basic concern.

? Don’t Change Broadway west of Macdonald-the look and feel of Broadway west of Macdonald is unique and special. Changing the street scape would weaken this identity.

? Change Broadway East of Arbutus -the street scape along Central Broadway, particularly between Main Street and Arbutus Street, isn’t a pleasant place to be. We should take advantage of the transit investment in the corridor to make it better.

These themes were presented at the Wrap Up Open House on February 28. We asked those that attended to verify if we were correct in what we had heard to date. Most themes were generally confirmed (or not contradicted). As to cost, the written comment sheets indicated that while cost was a concern, SkyTrain was a worthwhile investment over the long term. Those who spoke at the plenary session indicated that cost, and more specifically fiscal responsibility, was important.

MarkTrend Research

Merchant Focus Groups

In short, merchants expressed a strong preference for the SkyTrain/ RapidBus options, with considerable appetite for SkyTrain to UBC. Merchants generally did not support the light rail option, expressing serious concerns about loss of parking, increased congestion and construction impacts. There is an understanding of the cost implications for SkyTrain (even to UBC) with some willingness on the part of merchants to participate in funding -so long as others do as well. The results of the four merchant focus groups are summarized in Appendix D.

Public Opinion Survey

In terms of the technology options, Vancouver residents expressed a strong preference for the SkyTrain/Rapid Bus option. Overall 65% of Vancouverites preferred the SkyTrain/RapidBus option, 18% preferred RapidBus, and 14% light rail. This preference was shown by both transit riders and non transit riders; it was also consistent across various demographics such as age, gender and household composition.

In terms of preferred termination point, residents expressed a desire to see SkyTrain extend as far west as possible. The further west the termination point, the more popular it was - of the four termination points, Arbutus was by far the most preferred. AlthoughSkyTrain to UBC was not an option presented to residents, there was some interest expressed in continuing SkyTrain to UBC.

Finally when pressed on cost there was little shift in preferences. SkyTrain/Rapid bus remained the clear preferred choice; 62% preferred that option over RapidBus or LRT.

Summary of Public Consultation

Overall, the quantitative research conducted by MarkTrend tracked closely what staff heard during the open houses and workshops. The pubic expressed an overall preference to do something now, preferably SkyTrain plus RapidBus, with the SkyTrain component as far west as Arbutus.

4. Consultant’s Recommendation

The Consultant submitted his final recommendation to the Phase 2 Steering Committee on March 14, 2000. The recommendation is comprehensive and well reasoned. The Consultant recommends option #5: continuing SkyTrain to a western terminus at Granville plus rapid bus to UBC. As to extending SkyTrain from Granville to Arbutus, the Consultant recommends tying the decision for that segment with the north-south analysis, and notes that the Granville terminus could be designed to allow for an extension to Arbutus in the future. The Consultant’s recommendation includes a discussion of the study, the public process and the reasons for his recommendation. The Consultant’s full recommendation is attached as Appendix E.

5. Cost

As outlined above, cost varies widely between the options. Both SkyTrain and LRT represent very large public investments.

While the costs for SkyTrain and LRT are significant, public process participants generally did not include cost in criteria that were most important to them. Also, where participants made comments about cost, they often referenced the value of the long term investment; ie. “we know SkyTrain is expensive, but it’s a long term investment, and it’s worth it”. In part this may be because the public perception is that it’s “free”, to the extent that any contribution on the part of Vancouver residents will be at best indirect.

While there is no suggestion that City revenue sources (e.g. property taxes) will be increased to pay for a rapid transit investment, City residents will be contributing to thecost of any transit investment, as will other residents of the region and Province. For that reason, the issue of cost warrants further discussion.

We have analysed the issue of cost from three perspectives:

? cost to the City
? cost to TransLink
? cost to the Province

First, there is no direct cost to the City as a fiscal entity. The City does not contribute to the cost of any rapid transit option. Its capital program is not affected.

However, as described above, Vancouver residents (like other residents in the region) ARE affected; they contribute to the revenue sources of TransLink (transit fares, parking sales taxes, transit tax (billed through the property tax), gas tax, Air Care test fees, and, if the draft Strategic Plan is adopted, vehicle charges), and to the Province (income and other taxes). By legislation, TransLink cannot run a deficit. Therefore, it must derive its share of any rapid transit investment from its revenue sources.

The following table looks at the cost from TransLink’s perspective. It applies the terms of the Cost Sharing Agreement to each option, showing the share of the capital and operating costs (on an annualized basis) that TransLink and the Province will pay. Appendix F includes a more detailed version of this analysis.

BROADWAY/LOUGHEED CORRIDOR
ANNUALIZED COSTS ($MILLIONS)
SUMMARY

¹ Based on Province paying 67% of SkyTrain Capital (and TransLink paying 33%) to Granville Street.

² TransLink share includes 33% of capital to Granville, 100% of capital between Granville and Arbutus.

³ Net operating costs are total operating costs for each system less credits from existing 99-B Line and revenue offset from new riders attracted to the system.

While the overall cost is significant, it is important to note that given the Cost Sharing Agreement, in 2005 TransLink’s share of the SkyTrain/RapidBus option to Granville is less than 3 % of TransLink’s projected annual operating budget for that year.

Build Rail Now or Later?

The Consultant in his recommendation states that the RapidBus option is an interim solution, and that it would require substantial redefinition or conversion to another mode beyond approximately 2015. The question then becomes, is there an economic advantage to running RapidBus for 15 years, then building SkyTrain, or is it better to build SkyTrain now? Further, how does the Cost Sharing Agreement affect that analysis?

To answer this question, TransLink and the City retained a consultant to provide a Net Present Value analysis of “build now” and “build later” options, using three funding scenarios:

? total cost
? cost to TransLink assuming the Cost Sharing Agreement is only available now
? cost to TransLink assuming the Cost Sharing Agreement remains available in 2021

The Net Present Value analysis set a conservative date for SkyTrain construction - 2021, 7 years longer than the Consultant indicates may be the limit for RapidBus.

In addition, the study considered three possible SkyTrain termination points: Cambie, Granville and Arbutus (noting that the segment from Granville to Arbutus is not included in the Cost Sharing Agreement). TransLink staff have prepared, as commentary, a memorandum summarizing the analysis from TransLink’s perspective. As yet this memorandum has not been considered by the TransLink board, but we have included the memorandum as part of Appendix F to help inform Vancouver’s discussion.

Total Cost:

In terms of total cost, for a western end point at Granville, it is $157 million more expensive to build SkyTrain now. However, the efficiencies in mobilization costs by continuing SkyTrain construction to the west concurrently with the Coquitlam extension, along with economic spinoffs and other qualitative benefits, may offset this cost.

Cost to TransLink with Cost Sharing now; and no Cost Sharing later

From TransLink’s perspective, it is cheaper to build now to Cambie or Granville (depending on the discount rate, a saving of between $20 and $40 million over running RapidBus for 15 years, then building SkyTrain), and only marginally more expensive to build to Arbutus.

Cost To TransLink if Cost Sharing available in 2021:

Even if Cost Sharing is assumed to be available on a long term basis, the incremental cost to TransLink of building now to Granville is small, in the order of $35 million.

TransLink staff point out that “given that construction west of Granville is not cost shared, a decision on this segment should be considered in isolation, and separate from this analysis.”

Other Regional Priorities

Regional capital projects are evaluated on the basis of affordability, impact on the regional debt and their importance relative to other projects.

Past regional priorities, focussed on liquid waste and solid waste, have led to reduced demand for capital investments in these areas. Current priorities include a commitment to improved air quality. In addition, the GVRD recognizes that to achieve its regional strategic land use plan, transportation must be a higher priority. The GVRD and other regional agencies agree that there has been an under investment in transportation in the recent past. This has resulted in a backlog of needs and increased public expectation that these needs will be addressed.

In reviewing the regional finances, both at the GVRD and TransLink, the financial rating agencies have indicated that they are comfortable with the current level of debt and that there is capacity for future debt.

TransLink has included its one third share of SkyTrain in its long term cost projections.

Cautionary Notes Regarding Cost Estimates:

We note that the Consultant obtained the capital costs for SkyTrain from the Province. While we understand that significant preliminary engineering work has been done to verify these estimates, it is early in the process. The LRT cost estimates were generated by the Consultant, but again, based on preliminary work only. The level of detail in the cost estimates is appropriate for this level of study, but they are preliminary estimates.

If SkyTrain is selected as an option, the Cost Sharing Agreement contemplates further engineering work to verify the costs before any work proceeds. As is the case with many large engineering projects, the cost estimates may increase with more detailed analysis, including, in the case of a tunnel, geotechnical work.

Given our experience from Phase 1 of the SkyTrain extension, it will be important to ensure that the budget includes those elements that are critical to the success of rapid transit as an integral part of the overall transit system and an attractive part of our communities. For the transit part of the equation, that means a seamless connection to the bus system, and well designed, safe, attractive stations. We note, for example, that the Consultant recommends more than one exit at SkyTrain stations at Cambie and Granville - currently not in the cost estimates provided by the Province. However, for Vancouver to maximize the benefits of this investment for the corridor overall, further investment in the public realm will be very important.

5. The City’s recommendation to TransLink and the Province

Following is staff’s analysis of the various options having regard to: land use and transportation planning policy; the Consultant’s report and recommendation; the Cost Sharing Agreement; the public process and the public opinion survey.

Option 1 - Rapid bus Commercial Drive to UBC

This option is the least expensive option for TransLink, and offers a seamless journey for passengers travelling the full length of the corridor between Commercial and UBC. However, it is at best an interim solution that will not allow the City to achieve its land use aspirations for the Broadway Corridor. Moreover, as we approach system limits in 15 years, in order to meet demand we will have to once again consider a further investment in rapid transit. Given the current Cost Sharing Agreement, the conclusion of the economic analysis is clear: from a regional perspective, if, in 15 years we intend to buildSkyTrain further west, it would be wise to build it now. In addition, the public’s view is that buses are not the answer for this Corridor, and that it warrants a more significant transit investment.

Option 2 - LRT Commercial Drive to UBC

The study concludes that with minor exceptions, it is possible to build a light rail system within the Broadway street right of way without land acquisition. In addition, it attracts significant ridership - close to that projected for SkyTrain/Rapid bus, and offers the potential for significant improvements to the Broadway and 10th Avenue street scape. However, it is a “tight fit”, particularly at key intersections like Main/Kingsway, Granville, and 10th and Alma. LRT would mean removing 2 lanes from Broadway and 10th Avenue and will mean a loss of a significant number of curbside parking stalls. In addition, it must compete with other users on a very busy arterial.

Both the City’s qualitative process and the quantitative survey research suggest that there is little public appetite for LRT in this corridor. There is concern that traffic congestion will increase, particularly if the proposed Transportation Demand Management initiatives are not implemented or are unsuccessful in reducing auto use. The public are worried about loss of parking and traffic diversion onto parallel arterials and local streets. Merchants along the route have expressed significant concern about the construction impacts and the loss of curbside parking. Staff are of the view the public concerns would grow more intense with detailed design and implementation of the LRT option.

Finally, under the current funding arrangement, the Province will not contribute to LRT. TransLink would have to pay the full capital cost, which would likely be prohibitive.

It is important to note that these disadvantages are a function of two things, neither of which is related to the technology itself:

? the particular characteristics of this corridor; it is narrow, busy and there are limited parallel arterials nearby

? the Province has extended SkyTrain part way along the corridor, and has expressed its commitment to SkyTrain further west, though only to Granville

LRT has significant advantages, notably its potential to enhance the street scape, its inherent flexibility and its ability to provide a finer grain of transit that is an integral part of the urban fabric. While staff is not recommending LRT for Broadway, it may well be an attractive transit solution for other corridors.

Staff also note that the public are very concerned about what they see as an unsatisfactory street scape on Broadway. The Consultant makes note of this on page 5 of his recommendation: “The element of the light rail alternative that is of attraction to many is the opportunity to use the investment to upgrade the street and urban environment the length of Broadway and Tenth [sic]....the feature of the light rail option which resulted in the most positive comment was its contribution to the street scape and urban environment through which it passed.”

Staff agree with this observation, but note that most of the negative comments about the existing urban environment were about Broadway east of Granville. Should the Province and TransLink proceed with Phase 2, staff are recommending as part of RECOMMENDATION D that a plan for public realm improvements on Broadway be developed, with a view to implementing those improvements concurrently with construction of the SkyTrain extension, thereby realizing any economies, with any additional improvements to be considered for the City Capital Plan Program.

Option 3 - SkyTrain to Main

In short staff concur with the Consultant’s conclusion: a SkyTrain terminus at Main has little benefit for the considerable cost. It does not connect with any of the north/south rapid transit options does not connect with the important destinations along Central Broadway. In addition, it has the same primary disadvantage as RapidBus - it does not allow the City to achieve its long term land use objectives for the Corridor.

Options 4, 5 and 6 - SkyTrain to Cambie/Granville/Arbutus

RECOMMENDATION B provides that Council recommend to the Province and TransLink that SkyTrain continue west from VCC, via the False Creek Flats (in a tunnel generally under Prince Edward Street and 10th Avenue), to Granville Street, as part of the present construction program, with a rapid bus connection to UBC.

The distinguishing factor among options 4, 5 and 6 is the western terminus of SkyTrain. Staff believe that a Granville terminus should form the basis for Council’s recommendation to TransLink and the Province under the terms of the Cost Sharing Agreement. Staff suggest pursing discussions with TransLink for a possible further extension to Arbutus.

While the Cambie option extends SkyTrain to one of the likely candidates for a north/south corridor, it does not connect with the Granville or Arbutus north-south corridors and falls short of the key destinations in Central Broadway.

Ending SkyTrain at Cambie would serve less than half of the current and projected employees in the Central Broadway area. Moreover, it would not serve one of the existing and future regional destinations: the VGH medical precinct. Only by extending direct rapid transit service to Granville, at a minimum, can Central Broadway be served adequately. In addition, extending SkyTrain to Granville means a connection with a major north/south corridor, and the new “98B line”, the RapidBus connection between Richmond and Downtown scheduled to begin operation this year.

As set out in the policy discussion earlier in this report, Central Broadway is a critical element of the City’s planning strategy - it’s the second downtown (home to 75,000 jobs by 2021), and, if approved, the site of a a significant medical/bio-tech R&D facility. Rapid transit can play a major role in achieving the City’s transportation and land use objectives for Central Broadway, and in fulfilling its aspirations to connect and serve high tech/bio-tech nodes. This will give Central Broadway a competitive advantage over automobile-dependent suburban developments.

Finally, building rapid transit to Central Broadway will also put it on equal footing with the majority of the other regional town centres, which either have rail rapid transit connections now or will have them as part of the current SkyTrain expansion project. Connecting the majority of regional town centres will build a synergy between them that is also reflected in ridership. For example, extending SkyTrain from Cambie to Arbutus increases the length of the system by 4.4% but attracts 6.8% more ridership.

RECOMMENDATION D instructs staff to meet with the Province and TransLink to establish a process for the westerly extension and report back on a work program and budget to participate in the design of this extension. This work program would also include a plan for public realm improvements on Broadway. This is in response to the public’s concern about the Broadway streetscape, particularly east of Granville. Staff recommend any program be designed with a view to implementing those improvements concurrently with construction of the SkyTrain extension, thereby realizing any economies, with any additional improvements to be considered for the City capital plan program.

RECOMMENDATION C states that staff should pursue discussions with TransLink as to a further extension from Granville to Arbutus.

There are good reasons to further extend SkyTrain from Granville to Arbutus:

? it is an existing railway corridor which both City and regional planning documents reference as a long term transportation corridor;

? it may offer more opportunity for efficient bus connections further west to UBC, reducing the pressure on the busy Broadway/Granville intersection;

? and it represents, over the long term, a key component of a transportation “grid” over the City.

However, under the terms of the Cost Sharing Agreement, the Province is not contributing to the cost of building SkyTrain beyond Granville, so any discussion of the Granville - Arbutus extension will be between the City and TransLink; moreover, the March 31 target for the City’s recommendation to TransLink and the Province is a function of the Cost Sharing Agreement, and does not require an immediate resolution of the Granville/Arbutus issue.

A north-south rapid transit line between Richmond and downtown is a key element of the rapid transit plan for the region. As the location of the corridor has not yet been resolved, it is important to consider this issue in the near term. RECOMMENDATION E provides that staff be instructed to discuss with TransLink planning for a north-south rapid transit line and report back on a work program and budget.

CONCLUSION

This report is provided to Council for information and forms a basis for public comment at the Special Council Meeting on March 27, 2000.

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PHASE 2 RAPID TRANSIT - COMMERCIAL DRIVE WEST: PUBLIC PROCESS

Index of Appendices

Link to Appendix A: Provincial SkyTrain Phase 1 and Phase 2 Plan

Link to Appendix B: Employment and Ridership Projections

(i) Employment Projections at Regional Centres for 2021
(ii) A.M. Peak Hour Peak Direction Passenger Flows in 2021
(iii) Employment Projections in Vancouver Centre for 2021

Link to Appendix C: Summary Description of Technology Options

(i) RapidBus
(ii) Light Rail Transit (LRT)
(iii) SkyTrain + RapidBus

 

Appendix D: Detailed Account of Public Process (on file in the City Clerk's Office)

   - Link to MarkTrend Research Executive Summary

Appendix E: Recommendation of BRW, Inc. - Phase 2 Consultant (on file in the City Clerk's Office)

Appendix F: Cost Analysis

(i) link to Cost Comparison of Alternative Options
(ii) Table of Annualized Costs to TransLink and the Province for Each Option (below)
(iii) Memo from TransLink Staff Regarding Net Present Value Analysis of RapidBus vs. SkyTrain (on file in the City Clerk's Office)

ANNUALIZED COSTS ($MILLIONS)*

1 cent/litre gas tax will recover $22 M (2000)

GVTA/HOSP mill rate of 0.039896 will recover ~ $10 M. Annual tax on a $300,000 assessed property would be $12.

$8 vehicle tax yields about $10 M.

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