Monday, February 13, 2012Partly Cloudy 2°C
City

A Look Back at Toronto's Streetcar Debacle

Posted by Dennis Marciniak / July 11, 2009

ttc New Bombardier StreetcarsMayor David Miller is still cleaning up the mess left in the wake of the TTC streetcar funding debacle. The full details of the deal have emerged, but the dust hasn't exactly settled. The $1.22 billion dollar deal with Bombardier was on the rocks in late June, but was saved at the last second by an emergency vote in city council on June 26. Although the project has got the go ahead, sacrifice had to be made to other areas in the city's transit system.

The original deal was to split the price tag among city, provincial, and federal governments three ways. Ontario agreed, and coined up $416 million in mid-June. The province agreed mainly due to the incentive that 5,000 direct, and 14,000 indirect jobs were to be created. With that in mind, the project started to make more sense to me. The streetcar deal seemed to be underway and moving ahead with full force until Ottawa became reluctant.

The federal government was reluctant to contribute claiming that the project failed to meet the criteria of the economic stimulus fund. I thought this notion was absurd, as jobs were being created, but the money from Ottawa never came. At that moment, the mayor was in trouble because a third of the price tag was missing. If he did not meet the June 26/27 midnight deadline, the deal would have expired and the price tag would of jumped another half billion dollars. Not to mention the city would lose the pledge of provincial funding alongside it.

On June 26th, city council held an emergency meeting and cleaned up the mess many felt David Miller made. The city dug deeper into its pockets and forked out another $417 million to fill the gap left by Ottawa. The contract was saved and Miller felt proud of his accomplishment, calling it one of his "proudest moments as mayor", but now he faces criticism from myself and other transit users.

Out of 2,700 other pending infrastructure projects, this was the only one that did not gain approval. In a two page rejection letter to the mayor, Infrastructure Minister John Baird wrote, "The project that your officials tried to submit clearly did not meet the criteria". I have a feeling the package may have been prepared in haste or carelessly. If the criteria is laid out, why wasn't it met?

Days later, the Kitchener/Waterloo area got their $790 million LRT system approved almost effortlessly. When this happened I raised an eyebrow. Former Waterloo City Councillor John Shortreed didn't see the justification due to their low population, and I didn't either. Afterward, Miller sent the minister a print of two streetcars (of different generations) passing each other as an attempt to "repair the relationship". All these events have led me to believe that something with the proposal was amiss.

There's no denying that the new European styled streetcars are eye-appealing and efficient, but I feel that there are more urgent projects to complete, such as the new LRT lines, or repairing the subway. Almost two weeks later, this catastrophe over funding is still fresh in my mind and that of transit users. Between almost fumbling the contract and the garbage strike, the mayor is skating on thin ice.

Interior of the TTC's Bombardier StreetcarsSimply put, the money has to come from somewhere. The extra third in funding was pulled from the Red Rocket's infrastructure projects. With the TTC needing to repair much of the system, money isn't exactly in abundance. For example, Eglinton station's re-modernization will have to wait as 204 new vehicles hit the city for now - the last of which should be here in 2018.

I'm not outraged, but I'm not exactly pleased either. The whole situation could have been handled much better, but the city will ultimately upkeep its title as being one of two cities in North America to still use street cars. In the end, the financial burden was placed on the backs of Toronto's taxpayers, but when the garbage clears and everything is said and done, maybe my criticism will subside. With Transit City still underway, eventually a financial bump will be hit. Let's hope that the next time the city needs urgent funding, Mayor Miller will not repeat his mistakes... because almost two weeks later, he is still being reminded of the mess he made.

Images are courtesy of Bombardier.

Discussion

31 Comments

Joel M / July 11, 2009 at 09:02 am
user-pic
I don't understand what Miller was supposed to do differently here. With Kitchener getting LRT funding immidiately, it is clear that the federal government was making up the stimulus cash funding rules as they went along. If the Liberals were in power and denied funding due to some technicality the conservatives would be screaming about it being bureaucratic nonsense, however in this case they are labeled in the right, and Miller is blamed for not filling out the application correctly.

The only reason Kitchener got funding is because there are Conservative MP's in their ridings. The race was also very tight in the last election, plain and simple. The Tories have no hope of winning in Toronto, so we get screwed.

You'll notice this happens for virtually all transit announcements in the GTA. See Harper's recent photo-op with GO. Instead of announcing actual service improvements, the story was they are building giant parking garages at GO Stations in the 905. Well, that's great, except all that will do is add to an already very crowded system.

Toronto's streetcars are falling apart and need to be replaced. Miller isn't perfect, but the feds denied paying their share of this project, then turned around and gave a ton of cash to Kitchener for virtually the same thing. If Harper can get away with that with Miller still taking the blame there is little hope for transit in our city as long as the Tories are in power.
o_O / July 11, 2009 at 09:54 am
user-pic
Joel is exactly right. This is all about Toronto getting punished for refusing to embrace Stephen Harper's government. For the writer of this post to miss that most obvious point and assume that an application was submitted in haste suggests that he is willfully blind to the real circumstances of the situation.
Kenny / July 11, 2009 at 10:13 am
user-pic
Crumbling roads, after-school program cancellations, recreational centre closings, water main disintegration, Gardiner eroding, traffic gridlock + chaos, poor traffic planning + synchronization, pollution, hideous waterfront, homelessness, inadequate municipal social assistance funding, constant strikes, municipal judicial backlog, decaying stations + vehicles, green bin debacle (hell, the whole 'green' movement falsehood), etc etc etc.

So how does Toronto fix these problems? By raising taxes, creating new taxes, and diverting that money to something we won't see for the next decade! In fact, it'll only put the city in more financial straits, seeing as how they didn't have the money in the first place!
Steve / July 11, 2009 at 11:04 am
user-pic
Miller gambled and lost. He put one big egg in the wrong basket. Replacing streetcars simply does not qualify under the Stimulus Fund as its impact would be in future years, not the coming months. Remember, we're in a recession. That is the whole point of the stimulus.

Had Miller applied for funding to repair Toronto's crumbling infrastructure, Toronto would have received its share of the pie. Since he did not, we got nothing. I'm not sure how having some Conservative MPs from Toronto would have changed this. Miller is simply incompetent. We have to get rid of him.
Randy / July 11, 2009 at 11:32 am
user-pic
@Steve.

If we had a conservative Mayor i am certain that we wouldn't have even had a proposal for type of upkeep to public transit.

All we would have is a few more roads built and some tax credits to encourage people to buy cars.

Or wait, maybe we would be lucky enough to have another subway line built to the mayors house. (ie. Bassarion station aka the subway to Mayor Mel's FRONT DOOR!!)
Joel M replying to a comment from Steve / July 11, 2009 at 11:49 am
user-pic
Why is Kitchener getting funding for streetcars under the stimulus plan then?
splotki / July 11, 2009 at 12:03 pm
user-pic
This city has no soul and no cultural identity. It's pathetic.
Steve replying to a comment from Joel M / July 11, 2009 at 12:03 pm
user-pic
Kitchener's LRT was apparently funded under the <a href="http://www.buildingcanada-chantierscanada.gc.ca/funprog-progfin/target-viser/bcf-fcc/bcf-fcc-eng.html";>Build Canada Fund</a>, not the <a href="http://www.buildingcanada-chantierscanada.gc.ca/creating-creation/isf-fsi-eng.html";>Infrastructure Stimulus Fund</a> to which Miller applied for funding.
Steve replying to a comment from Joel M / July 11, 2009 at 12:09 pm
user-pic
Who said anything about a "conservative Mayor"?

Or perhaps the antonym of incompetent in the lexicon of Miller supporters is conservative.

I'd settle for a fiscally responsible mayor. Deferring repairs to fund capital expenditures we can't afford is not the way to manage a city on a sustainable basis.
Steve replying to a comment from Steve / July 11, 2009 at 12:10 pm
user-pic
Clicked the wrong Reply button. The previous comment was in reply to Facebook User.
rek replying to a comment from splotki / July 11, 2009 at 12:26 pm
user-pic
What does that have to do with LRT funding? You're wrong, but I want to hear your answer anyway.
Eric S. Smith / July 11, 2009 at 12:32 pm
user-pic
It's not just that the Conservatives have little hope of gaining seats in Toronto. The other problem is that there's nobody in caucus to say, "Give money to my riding." This stimulus scheme is a game of Calvinball, but Toronto has no players on the field to shout out advantageous rules.

Meanwhile, the city paying for two thirds of the streetcar order won't starve widows and orphans. It's being covered by deferral of planned projects that aren't even close to being under way, and Baird swears up and down that he wants to give the city money for something, just not streetcars. Will federal money end up paying for some of the projects whose future funding is being used to account for the streetcar purchase? Shh!

(Tangentially to this, why is it that some people insist that a rebuild of the crumbling Gardiner is an imporatant necessity, while replacement of crumbling streetcars is a commie plot to raise taxes?)
mikeb replying to a comment from Joel M / July 11, 2009 at 12:47 pm
user-pic
The federal Conservatives and provincial Liberals are putting the same percentage of money up for the Sheppard LRT as this proposed KW line (~1/3 and ~2/3 respectively). Both lines get their federal money from the same Build Canada Fund, not the Stimulus Program. The speed at which the local Conservative MP announced support for the KW line smells of political opportunism, but it's likely they would have supported the line as proposed regardless of the competetiveness of the ridings. I doubt the Tories are doing the Sheppard LRT so they can shore up support in all the Scarborough ridings they won last election.

Miller engaged in brinkmanship when he submitted only one (unqualified) project for the Stimulus fund. It was a calculated policitcal gamble that blew up in his face. It angers me that both the feds and city couldn't work something out beforehand, but it was up to the city to submit something that quailfied. Baird's intemperate comments not only showed his bad temperament, but they were also indicative of his desire to fund Toronto-based projects.

BTW Facebook User, last I heard Mayor Lastman's front door is now at St Clair. Not that it matters, I have yet to see him on the subway.
myron / July 11, 2009 at 01:20 pm
user-pic
Your complaint that the funding should have gone to the new LRT lines instead of the new cars was the same mistake that both the provincial and federal governments have made, which is that the new LRT lines will need, well, LRT vehicles. The current fleet at 30 years old is falling apart and has reached the intended end of its lifespan. Do you drive a 30 year old car? Then you'd know what getting parts are like. Try and get parts for 30 year old streetcars. Further to that - and what the gripe with upper levels of government is about - is that the deal with Bombardier contained an option for the additional vehicles needed for these new lines. When the Ontario liberals initially announced funding for the Scarborough LRT, but then wouldn't fund the original streetcar deal (which would be necessary in order to get the option for the Transit City order) that was disingenuous. I will, however, agree that the subway repair program needs urgent attention. There's no point in pointing fingers and rehashing the history of inadequate funding for the TTC by all levels of government. We're in this predicament, let's find ways to get out of it. Oh, and John Baird is a douche.
Sean / July 11, 2009 at 02:31 pm
user-pic
The picture of the interior of the new streetcar looks quite narrow. How on earth does Miller expect us to carry our garbage across town?
jevander / July 11, 2009 at 07:43 pm
user-pic
You guys are crazy. David Miller did not fill out the application properly. The criteria for stimulus funding is for 'shovel ready' projects. The idea is to get people working immediately in the communities receiving the money. Ordering streetcars that are made in northern Ontario does not get people in Toronto working. Programs are established with rules for a reason, to ensure transparency, this was Miller trying to pull a fast one on the Feds, not a kick in the teeth for Toronto. As a result, Toronto isn't getting any stimulus money yet.


Wake up you guys, this is Miller's fault.
Mojo replying to a comment from Sean / July 11, 2009 at 08:04 pm
user-pic
Comments like yours is why I read this blog. Thank you!
Mike / July 11, 2009 at 08:46 pm
user-pic
I think both Ottawa and Queen's Park were put off by Miller & Giambrone's initiative in striking this deal with Bombardier and advertising how all three tiers of government would be paying for it. Instead of celebrating this investment in Toronto and reaping some political glory, they were put in the awkward position of being told they had to cough up the money, and not doing so would be bad on them. George Smitherman's initial reactions were a little more work safe than John Baird's but equally displeased.

The lesson is, if you require someone to come out of pocket for you, you'd be better served by making them feel good about it. Everyone's committed to transit funding (funding for new LRT lines demonstrates this), but the way this particular aspect of it was done left a bad taste in their mouths.

I think Miller's proud sentiments are in order, given that we are getting new streetcars and better transit overall at the end of the day, but he has harmed himself politically in the process. But I like a politician who puts the needs of a city above is personal reputation.
kit / July 11, 2009 at 10:03 pm
user-pic
Am I the only one who noticed this picture doesn't make any sense. This is the second time I'v seen it and its bothering me.

Tell me what street that is. Now I know your all going to jump and tell me its the south side of Queen between Bay and Younge.....but its not. First of all Neville Park trains is eastbound so it would be on the south tracks not the north. Second of all look down the street and tell me thats the corner of Younge and Queen cause its not. No little lotto shop, with the green trim and red marble.

Wierd piece of photoshopping. If I'm seeing this all wrong please feel free to tell me where this picture is taken?
Fleur / July 11, 2009 at 11:30 pm
user-pic
It's not a real photo. They made a mistake by putting Neville Pk on the train, that's all.
Paul / July 11, 2009 at 11:41 pm
user-pic
It is absolutely ludicrous to believe that the city's application to the stimulus fund was "brinksmanship", "a gamble", or whatever other perjorative is being applied.

I have some involvement with government procurement processes, and there is no way that Miller and city staff did not have a TON of back-and-forth with gov't staff regarding the suitability of the application. The very idea that Miller -- or any mayor -- would "gamble" on hundreds of millions of dollars of essentially "free" money is ridiculous and only a mindless partisan would believe it. Unfortunately, the Tories decided to screw us and pull the rug out from under the city at the last minute. If Miller was foolish, it was in trusting a snake like John Baird to do the right thing.
jevander replying to a comment from Paul / July 12, 2009 at 12:23 am
user-pic
Paul,

With all due respect, this was a gamble by Miller, he tried to 'twist' stimulus funding to fit his own purposes. There are literally thousands of other shovel ready projects the Mayor could have used to get funding from the Feds - it was HIM, not anyone else, who chose to apply for streetcar funding that simply didn't meet the criteria. How was Toronto the ONLY city that got the application wrong?? Mayor Miller made the streetcar annoucement before the city was guranteed any funds - talk all you want about the procurement process, they still went ahead with an annoucement knowing the funds weren't there. THIS WAS A POLITICAL STUNT!
drew / July 12, 2009 at 12:33 am
user-pic
Slow news day huh.
Paul replying to a comment from jevander / July 12, 2009 at 12:56 am
user-pic
Javender, that's a very appealing way to tell the tale if you're a Miller-hater, but it doesn't pass the smell test. I mean, really, does it seem believeable to you that David Miller sat down and filled out those forms himself, saying "Dammit, no matter what they say, no matter the risk to my political career, I'll fill these out incorrectly and damn the consequences MWAH-HA-HA"? Does it seem remotely plausible that the biggest city in the country, with theoretically the most to gain from the stimulus program, "got the application wrong" for something worth hundreds of millions of dollars? As fun as it might be to portray city politicians and staff as some kind of "Keystone Kops" or "3 stooges" operation, it is illogical in the extreme. Politicians at this level may be self-serving, they may be duplicitous and conniving, but they're not literally idiots. I agree this was a political stunt -- by John Baird -- playing to the Tory base of city-bashers in the suburbs and the sticks who like nothing better than crowing about that "socialist" Miller and how those stuck-up city dwellers got what they deserved.
neil / July 12, 2009 at 01:29 am
user-pic
"would of"?
"he faces criticism from myself"?
"upkeep its title"?

yikes.
j-rock / July 12, 2009 at 01:14 pm
user-pic
Whether or not you agree with the conditions attached to the money, the simple fact is that Miller did not meet them and gave the feds the opportunity to throw it back in his face. There are countless other infrastructure projects which would have easily qualified for the money, and benefit the city. Yes, the Conservatives dislike Toronto, and the city has certainly suffered as a result, but none of that changes the fact that Miller, either through his arrogance, incompetence, or some unholy combination of the two, continues to be an absolute failure as mayor. We need new streetcars, but there was a better way to go about it that needn't have forced the TTC to now hold off on other necessary upgrades and repairs.
Nic replying to a comment from neil / July 12, 2009 at 01:19 pm
user-pic
oh, hush.
McD / July 12, 2009 at 05:32 pm
user-pic
Paul,
Get with the real world. Instead of accusing other's of being Miller haters realize that your comments inticate that you are a Miller lover who is just as disconnected from economic realities as yourself. And yes, Miller is so blinded by his vision/arrogance that he has blown $100's of millions in funding by grandstanding and engaged in the same sort of negative wedge politics used by Harper.
bitters / July 13, 2009 at 01:07 am
user-pic
So how much would it cost to buy 204 buses instead? Am I the only one that sees the streetcar as a novelty? I understand it is part of the history/tradition of toronto public transit, but in terms of maintenance cost, user safety, and maintaining traffic flow buses are vastly superior, and they can be modified to use the same overhead electric system that the streetcars use.

I guess I'm just a little concerned that TTC infrastructure projects are essentially on hold forever, and there are a lot of stations that need work now. I mean if the money isn't there why are we getting new streetcars when the ones we have, while old, still work?
Josh replying to a comment from neil / July 13, 2009 at 09:41 am
user-pic
I agree Neil. You can't convince us if you don't know basic grammar. Why doesn't blogTO do some editing?

Jonathan replying to a comment from bitters / July 13, 2009 at 12:31 pm
user-pic
"So how much would it cost to buy 204 buses instead?"

Substantially less. Of course, these streetcars have the capacity of more than 2 buses. You would really need to buy about 500 more buses to replace them. That's also 300 extra drivers and dozens of extra maintenance and service people. Also when those buses reach the end of their 12-15 year life span, you'll have to buy another 500, unlike the streetcars which tend to last for decades.

Add a Comment

Other Cities: VancouverMontreal