ADMINISTRATIVE REPORT

Date: February 28, 2000
Author/Local: R. Malkin/7745

RTS No. 1270
CC File No. 5560
T&T Date: March 14, 2000

TO:	Standing Committee on Transportation and Traffic
FROM:	General Manager of Engineering Services in Consultation with the Director of City Plans
SUBJECT:	Draft Regional Strategic Transportation Plan

RECOMMENDATIONS

A. That Council support in principle the directions proposed for regional transportation in the next three to five years as outlined in the Draft Regional Strategic Transportation Plan dated January 12, 2000 .

B. That Council request TransLink to make every effort to secure the funding levels required to implement the Plan noting that Council’s priority is for increasing transit services to reduce overcrowding and pass-ups on heavily traveled routes and locations, such as to Downtown, Central Broadway, and the Regional Town Centres.

C. That Council inform TransLink that in principle it supports parking charges as an effective TDM measure, but that application of ad valorem parking charges to the Downtown without similar charges on other commercial parking could result in serious harm to the Livable Region Strategic Plan, and encourage suburbanization.

D. That staff review the actions proposed in the Regional Strategic Transportation Plan and progress on those actions, and report back as necessary on issues including new routes, the proposed replacement and expansion of the trolley fleet, service standards and improvements to service.

COUNCIL POLICY

Council has approved a Transportation Plan that requires transit to accommodate future increases in travel demand.

Council has adopted CityPlan, the Livable Region Strategic Plan, and the Transport 2021 Regional Transportation Plan .

On February 17, 1998, Council recommended to the GVRD Board “that it endorse the Recommended Agreement on Transportation Governance and Funding for Greater Vancouver [i.e. the basis of TransLink] for implementation”

SUMMARY

TransLink has produced a draft Regional Strategic Transportation Plan (STP) that sets forth planned improvements for the regional transportation system to be undertaken in the next 3 to 5 years. The STP proposes a significant expansion in transportation services, including greatly increased expenditures for transit, and selective development and maintenance of the regional roadway system. A management program includes transportation demand management (TDM), supports alternatives to single occupant vehicles, and emphasizes walking, cycling and goods movement. An important element of the Plan is the commitment to update the long range strategic transportation plan (Transport 2021) in 2001, at the same time the GVRD is reviewing the Livable Region Strategic land use Plan.

The additional cost of providing the services and infrastructure will increase TransLink’s overall annual costs from $507 million in 1999 to $814 million in 2005. New revenue sources anticipated to finance the Plan include a transit fare increase, an automobile levy, and parking tax. Staff are suggesting the STP is a significant step towards providing an improved future transportation system and should be supported in general, as per the recommendations above.

PURPOSE

TransLink has produced a draft Regional Strategic Transportation Plan (STP) that sets forth planned improvements for the regional transportation system to be undertaken in the next 3 to 5 years.

This report provides a brief outline of planned actions, costs and revenues and discusses certain key issues and implications for the City of Vancouver. The STP has been distributed to Councillors and is available for viewing in the City Clerk's Office and at TransLink’s

Internet site. A companion report entitled Regional Transportation Program Plan 2000 discusses the proposed implementation of transportation improvements this year.

BACKGROUND

TransLink was created in April 1999 by the Province and GVRD in order to rationalize and localize regional transportation planning and service delivery in coordination with regional land use planning. TransLink’s responsibilities include all regional roads, bridges, transit, rail rapid transit, ferry routes, cycle paths, transportation demand management (TDM), goods movement, AirCare and other facilities.

When TransLink was formed, there was an expectation that the level of transportation expenditure would increase significantly. The agreement negotiated by the GVRD and the Province anticipated expanding transit services and other transportation infrastructure generally to the ‘midpoint’ scenario level . This scenario was so named as it formed a ‘midpoint’ level of expansion between proposed BC Transit expenditure levels and higher Transport 2021 levels. The ‘midpoint’ scenario included adding about 400 buses to the fleet by 2005, as compared to about 150 buses for the BC Transit plan and 600 buses for Transport 2021.

TransLink’s intention is to have the STP approved at the end of March 2000 so it can be used to develop the 2000 Budget and Program Plan. Due to the compressed time line, it was decided not to undertake a major review of transportation strategies and interrelated land use policy. Rather, it was decided to develop an STP that sets out the actions TransLink will take in the next 3 to 5 years in order to provide immediate improvements to the transportation system. A comprehensive longer range study to review land use and transportation strategies will be started by TransLink and the GVRD in 2001.

The technical and public process to develop the STP was carried out in late 1999 and included examining revenue sources and potential projects, benefit/cost analyses and assigning funding priorities between competing elements of the transportation system, e.g., roads vs. transit. The result of this process was an STP that was more aggressive than the ‘midpoint’ scenario but less than the Transport 2021 scenario - about 500 buses would be added to the fleet by 2005.

This STP was received by the TransLink Board on January 19, 2000 and referred for consultation. It is planned for the Board to formally consider the STP for approval on March 27, 2000.

CONTENT OF PLAN

The STP proposes a significant expansion in transportation services, including greatly increased expenditures for transit, and selective development and maintenance of the regional roadway system. A management program for the STP includes transportation demand management (TDM), supports alternatives to single occupant vehicles, and emphasizes walking, cycling and goods movement.

Important elements of the plan which have particular relevance to Vancouver include:

1. Transit

Transit service delivery is the key TransLink responsibility, representing about 89% of its annual budget. TransLink plans to expand all transit services. Service hours would be increased by 32%, and ridership is projected to increase by 19 to 28% depending on the impact of the proposed fare changes. The transit market share of regional transportation trips is expected to increase from 11% to 12.5%.

Planned service improvements include:

(a) High/Intermediate Capacity Transit Services:

- Completion of the SkyTrain ‘T’ line, with extensions to Coquitlam and Central Broadway
- planning for the Richmond line, in conjunction with the 2010 Olympic Bid
- a long range plan for a “mature” high/intermediate capacity transit network in the region

(b) New Bus Services

The transit bus fleet will be increased by about 48%, from 1109 buses in 1999, to 1640 in 2005, in the following new service categories:

- B-Line Services - these are high frequency (every 10 minutes or better) limited stop bus services, like the existing Broadway 99B-Line, and are planned to include new technology, e.g., real time traffic signal priority and passenger information systems. A fleet size of 165 articulated buses is estimated in 2005. New services in Vancouver are planned for Granville (formerly called Richmond/Vancouver RapidBus), Hastings, between Downtown and UBC, and on 41st Avenue.

- City Bus - this includes the regular local and limited stop bus services. The level of City Bus service will be raised including a commitment to replacing and expanding the trolley fleet (see discussion below). The fleet size is estimated to increase from 1042 buses in 2000 to 1,323 vehicles in 2005.

- Community Shuttle - these services involve less expensive small buses or vans that can be used in low ridership areas where larger bus services are not justified. Services could be considered in difficult to serve areas such as West Point Grey and Vancouver Heights or for Downtown circulatory routes. It is estimated 52 vehicles would be in service in 2005.

- Express Bus - highway-type buses to provide fast comfortable service to longer distance commuters. Three new express bus route will be introduced providing new direct connections between Regional Centres, including Downtown Vancouver. A new fleet of 100 express buses is planned.

(c) Accessible Service

TransLink’s policy is to move toward a conventional transit fleet that is 100% accessible to people with disabilities. In addition, the service hours and fleet size for HandyDART would be improved by about 25%.

2. Bicycles

The plan proposes creating a Comprehensive Regional Bike Plan which would include developing and potentially funding a regional cycling network of local and regional cycling facilities, and making all transit services bicycle accessible.

3. Regional Roads

TransLink’s mandate is to maintain and enhance the integrity of the regional Major Road Network (MRN) and other key transportation infrastructure. TransLink does not own the MRN infrastructure (other than the Knight, Pattullo and Westham Island Bridges), but can provide guidance by coordinating municipal efforts and providing cost sharing to the municipalities for maintenance and new projects. New projects

range from smaller scale items such as bicycle facilities, transit priority measures, to major projects such as the South Fraser Perimeter Road. This program represents about 6% of the annual TransLink budget.

This program will have a favourable impact on the City’s major road network. The funding allocated will allow for additional improvements to facilitate preferred pedestrian, bicycling, transit, and goods movement modes as well as address safety, and enhance the maintenance and operation of the roadways beyond what could have been provided without TransLink assistance.

4. System Management

TransLink’s system management plan includes system monitoring, Transportation Demand Management (e.g. moving towards a roads pricing, van/car pool programs etc.), education (e.g. regarding cycling) and working with the municipalities to introduce new systems and technology to manage traffic/transit flows and assign priority to transit, bicycles and goods movement.

5. Goods Movement

TransLink plans to provide a co-ordinating role in supporting goods movement through the selective implementation of appropriate road improvements, road priority measures and the implementation of Intelligent Transportation Systems (ITS). In addition, TransLink will examine rail transport’s role in the overall goods movement network.

FINANCIAL PLAN

The additional cost of providing the services and infrastructure in the STP will increase TransLink’s overall annual costs from $507 million in 1999 to $814 million in 2005. The revenues and costs for 2000 and 2005 are presented below. More details are available in Appendix A . It should be noted the figures presented are broad estimates of costs and revenues, based on assumptions about the timing of transit and road expenditures.

Budget Item			2000		2005
			$ (millions)	% of Total	$ (millions)	% of Total
Revenue Sources		Fares	196.5	38%	279.5	34%
		Fuel Tax	173.8	34%	230.4	28%
		Hospital Tax	54.4	11%	64.1	8%
		Non-residential Property Tax	36.8	7%	43.3	5%
		AirCare Fees	24.3	5%	26.2	3%
		Hydro Levy	16.1	3%	17.7	2%
		Vehicle Charge	0	0%	116.5	14%
		Parking Sales Tax	10.1	2%	32.4	4%
		Other	4.3	1%	4.6	1%
		Totals	516.3	100%	814.7	100%
Costs	operations	Transit operations	375.5	69%	521.8	64%
		Road Related	28.0	5%	32.1	4%
		AirCare	20.6	4%	22.5	3%
		Admin./Misc.	29.1	5%	35.3	4%
	Debt servicing		91.2	17%	202.7	25%
	Totals		544.4	100%	814.4	100%

The new revenue sources anticipated to finance the Plan include:

- a transit fare increase averaging 25 cents on a one zone fare and a similar proportional increase in other fares, in 2000 and again in 2003
- an automobile levy averaging $75 per vehicle increasing annually by 5%, beginning in October 2001
- parking taxes - an additional 14% tax on pay parking effective Jan 2005 (i.e. total tax 28%)
- pursue tolling and benefiting property charges for any major suitable project which is developed within the plan time frame.

DISCUSSION

1. Is this the Right Plan?

In 1998, Council endorsed the proposed legislation creating TransLink with an understanding of the improved transportation (mainly transit) services required and approximate costs. This proposed legislation provided for a local governance and finance structure for transportation that would be more responsive to the needs of the City and Region. It also included guaranteed sources of revenue and the means to apply these revenue sources in a timely way to respond to necessary increases in transportation service. TransLink has now delivered a draft 3 to 5 year plan. This plan, in response to an extensive consultative process, proposes a more aggressive expansion of the transit system than was originally contemplated. The approach recommended is somewhere between the midpoint and Transport 2021 scenarios, and is a good first step in achieving the Livable Region Strategic Plan, Transport 2021, CityPlan and Vancouver Transportation Plan goals. Specifically, the proposed approach would help the City address its mode split goals, and addresses Council’s request to retain the trolley bus system. Overall, the costs are significant but are consistent with the order of magnitude of the TransLink concept originally approved.

Increasing the supply of transit services is an essential first step in addressing the region’s transportation difficulties. However, this in itself may not be sufficient to achieve the transportation mode split changes during peak periods that are essential to the success of both the long term Regional and City’s Transportation Plans. The STP does not incorporate some of the significant Transportation Demand Management measures that were central to the forecasts of Transport 2021. If the STP is to reduce the rate of increase in traffic congestion at peak times, greater attention will be needed for measures that discourage the use of the car when other practical alternatives exist. While the proposed charge on car use is to be supported, it is likely to do little to discourage the use of cars at peak times.

Given the speed and large scale of the expansion and the need for accountability in decision-making, it will be important for TransLink to dedicate the necessary resources to rationalize the allocation of new services and facilities, including developing comprehensive consultative and analytical processes, and documentation that is accessible to all stakeholders. For example, there are many competing needs for expanded conventional bus service. Appropriate improvements are required to deal with overcrowding, reliability, and adequate service levels in higher density areas of the Region. At the same time, there is a need for new regional connectors and innovative transit routes in areas not currently served by transit. Since resources arelimited, the decision-making surrounding this will require significant new investments in data collection and service design standards and processes. As well, there are concerns regarding how priorities will be determined if funding is not adequate to meet identified needs. Recommendation ‘B’ indicates Council’s priority for increasing transit services to reduce overcrowding and pass-ups on heavily traveled routes and locations, such as to Downtown, Central Broadway, and the Regional Town Centres.

2. Are the Proposed Revenue Resources Appropriate?

The plan is affordable by increasing or applying the revenue sources available to TransLink. Most of the revenues required will come from increased transit fares (user pay) and vehicle charges (transportation related). The Plan revenue sources reflect Transportation Demand Management (TDM) goals and the intent to move closer to a user-pay philosophy. No new property taxes are included.

The last overall fare increase took place in 1993 and an adjustment to the fare structure was made in 1997. Thus the fare increase of about 11% to 17% (depending on the number of zones) proposed for June is not unreasonable. However, TransLink recognizes that the magnitude and structure of future fare increases need to be reviewed as part of an overall fare strategy that considers factors including impacts on transportation strategies, societal needs, Council’s request for a better distance based fare structure, and the potential for innovative new products such as ‘U-Pass’ type systems. TransLink plans to carry out this fare review in 2000/01.

Regarding parking levies, it is recognized that parking charges in general are consistent with the TDM strategy contemplated in Transport 2021. However, they should be applied equitably to all non-residential parking. The current proposal to tax pay parking is regressive as it targets high density employment areas like Downtown Vancouver, and favours less transit friendly, lower density suburban land uses with free parking. This could have the negative effect in the long term of encouraging more decentralized development, as suburban areas would have a cost advantage over central areas where parking is priced. The new parking charges are not scheduled to be applied until 2005, and TransLink will be working towards a more comprehensive and equitable parking strategy in the interim. It is recommended that Council express its concerns over the proposal at this time (Recommendation ‘C’).

Council has urged greater cooperation between TransLink and the Province on implementing tolling as a funding source and as a means to achieve the mode split targets in Transport 2021. The plan proposes that tolls be considered for new facilities and that authority for broader tolling be requested from the Province.

3. Implementing the Plan

The Plan proposes a major expansion in transportation service, one of the larger programs in Canada at this time. Major new rail lines are being planned and constructed. TransLink is proposing to add about 500 new buses by 2005. The logistics of this are daunting, including the planning, design and construction of operating centres, infrastructure and operating technology.

City staff will continue to be involved with TransLink on such matters as:

- Annual Program and Capital Programs. Program Plans are developed to identify specific transit, roadway and other transportation projects to implement each year. Staff are working with TransLink staff on processes and guidelines for cost sharing and service allocations. As part of this, it will be important to have guidelines to ensure all modes including walking, cycling, transit and goods movement are considered when designing new and rehabilitated transportation infrastructure.

- Vancouver Area Transit Plan Process. TransLink and the City will undertake a technical and public process in 2001 to identify transit improvements for the City and University Endowment Lands. The process will define the level, types, and amount of transit services required in the next few years and will incorporate work emerging from the Downtown Plan.

- Expansion Of The Trolley Fleet. TransLink has concluded the trolley overhead wire network should be retained, but not expanded due to the high additional cost of installing new overhead support infrastructure. The plan proposes replacing and expanding the existing trolley fleet. The commitment to this technology is encouraging. However, we have concerns that the number of trolleys proposed will not be enough to meet the current and future increased demand on City routes. The fleet size is dependent on crowding standards, size of the vehicles (e.g., regular or larger articulated buses) and projected ridership growth, and

will have to be investigated more closely with TransLink. Staff will report back when more information is available.

4. Focus on Long Term

An important element of the Plan is the commitment to update the long range strategic transportation plan (Transport 2021) in 2001 at the same time the GVRD is reviewing the Livable Region Strategic land use Plan. There is significant concern that these plans are not being achieved and are out of date. For example, progress towards achieving population and employment growth targets for the Growth Concentration Areas is lagging, while growth continues in other areas. Employment growth is dispersing (e.g., office parks) throughout the region. Similarly, many of the Transport 2021 elements are either behind schedule, or have not been achieved. The longer term plan will also have to address the need for significant additional revenue resources to fund the continued increase in transit services in the region after 2005, including rapid transit expansion.

CONCLUSIONS

The additional costs are significant and sobering; however, this was known when TransLink was established. It was also known that the increased investment in transportation would need to be funded from the new sources available through legislation. There is, not surprisingly, opposition to fare increases and the application of these new revenue sources. Nevertheless, the plan, including the financial plan, should be supported as it is a significant step towards providing an improved future transportation system compared to the past practice of fractured responsibilities and inaction. Furthermore, the technical and public processes support the Plan’s balance, and suggest that it is necessary to start to deal with the worsening problems of sprawl, traffic and transit overcrowding that are here today.

Staff will work with TransLink in order to carry out the Vancouver Transportation Plan and reinforce critical elements of Transport 2021, including: reducing transit overcrowding and pass-ups; TDM measures to encourage commuters to use transit; innovations in transit services, such as limited stop services for peak periods, U-Pass systems for major employers, and community buses; and continued support of GVRD initiatives to promote regional land use that is conducive to transit .

* * * *

Appendix ATRANSLINK: 5 YEAR FINANCIAL SUMMARY
(RECOMMENDED REVENUE STRATEGY

$ MILLION	2000	2001	2002	2003	2004	2005
SERVICE LEVELS
Total Service Hours (million)	4.71	4.93	5.24	5.63	5.88	6.21
Total Ridership (million)	127.9	132.1	138.6	141.3	146.4	152.5
Buses	1175	1293	1396	1488	1568	1640
SkyTrain Cars	170	210	210	217	223	247
REVENUES
Fare Revenue	196.5	215.2	225.2	260.0	268.9	279.5
AirCare Fees	24.3	24.7	24.9	25.3	25.8	26.2
Other Operating Revenues	4.2	4.3	4.3	4.4	4.5	4.5
Total Operating Revenues	225.0	244.2	254.4	289.7	299.2	310.2
Non-residential Property Tax	36.8	38.1	39.3	40.6	41.9	43.3
Hydro Levy	16.1	16.5	16.8	17.1	17.4	17.7
Fuel Tax	173.8	193.6	201.8	213	218.7	230.4
Hospital Tax	54.4	56.4	58.1	60	62	64.1
Mission (re. West Coast Express)	0.1	0.1	0.1	0.1	0.1	0.1
Parking Sales Tax	10.1	10.2	10.3	10.5	10.6	32.4
Vehicle Charge	-	23.4	95.4	102	109	116.5
Total Tax Revenues	291.3	338.4	421.9	443.4	459.9	504.6
TOTAL REVENUES	516.3	582.6	676.4	733.1	759	814.8
COSTS
Transit-Related Costs	375.5	396.6	434.1	465.7	489.4	521.8
Road-Related Costs	28	35.4	31.7	31.5	31.6	32.1
AirCare Costs	20.5	21	21.2	21.6	22.1	22.5
Miscellaneous Costs	1.7	1.9	2.1	2.1	2.2	2.4
Administration Costs	27.4	29	30.3	30.7	31.2	32.9
Total Operating Costs	453.2	483.9	519.4	551.6	576.6	611.7
Debt Servicing Costs	91.2	114.9	141.6	163.7	181.4	202.7
TOTAL COSTS	544.4	598.8	661	715.3	758	814.4
ANNUAL SURPLUS (DEFICIT)	-28.1	-16.2	15.3	17.8	1	0.4

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