Public Transit Agreement

CANADA
ONTARIO
THE ASSOCIATION OF MUNICIPALITIES OF ONTARIO
and THE CITY OF TORONTO

AGREEMENT IN PRINCIPLE

TRANSFER OF FUNDS FOR PUBLIC TRANSIT UNDER THE NEW DEAL FOR CITIES AND COMMUNITIES

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This Agreement made as of June 17, 2005

Preamble

WHEREAS Canada, Ontario and Ontario municipalities, as represented by AMO and Toronto, wish to cooperate in making a transformative difference in the sustainability and future prosperity of cities and communities in Ontario for Canada’s future.

WHEREAS Canada’s New Deal for Cities and Communities will: engage governments, stakeholders and the citizens of Canada in purposeful partnerships; foster vibrant, creative, prosperous and sustainable cities and communities across Canada; and enable all Canadians to achieve a higher quality of life and standard of living.

WHEREAS Canada, Ontario and Ontario municipalities, as represented by AMO and Toronto, may enter into New Deal agreements to support sustainability objectives.

WHEREAS public transit infrastructure contributes to the sustainability and future prosperity of Ontario’s cities and communities.

THEREFORE the Parties agree in principle as follows:

1. Purpose of Agreement

The purpose of this Agreement–in-Principle is to outline the parameters of a Final Agreement between the Parties on the transfer of funds for the benefit of Ontario municipalities for investment in public transit infrastructure.

2. Outcomes

Federal public transit funding will support the following environmental objectives:

• Reduced Greenhouse Gas (GHG) emissions
• Cleaner air

The Final Agreement may also include other objectives agreed to by the Parties, such as increased ridership.

3. Allocation to Ontario

Ontario’s share of the $800 million identified for public transit will total $310.3 million.

All Payments due under the Final Agreement are conditional on legislated appropriations pursuant to C-48 An Act to authorize the Minister of Finance to make certain payments.

4. Roles and Responsibilities

The roles and responsibilities of the Parties will be detailed in the Final Agreement. To the extent possible, roles and responsibilities will be based upon the existing roles and responsibilities agreed to by Canada, Ontario, AMO and Toronto under the New Deal for Cities and Communities.

Ontario will have no role in the allocation formula for funds under this or the Final Agreement, the disbursement of funds to municipalities, reporting, audit or evaluation provisions or any adjudication of disputes between Canada and other Parties to this Agreement.

5. Other provisions

This Agreement-in-principle is conditional on the negotiation and execution of a Final Agreement which will contain provisions related to delivery mechanism, the development of transit strategies, eligible costs, reporting, audit, evaluation, dispute resolution, stacking, default, remedies, communications and other miscellaneous provisions.

To the extent possible, these provisions will be based on the existing provisions agreed to by Canada, Ontario, AMO and Toronto under the New Deal for Cities and Communities.

6. Use of Funds

Canada, AMO and Toronto agree that the use of funds under this Agreement will be for capital investments in public transit, for example:

1. Rapid Transit: tangible capital assets and rolling stock (includes light rail, heavy rail additions, subways, ferries, transit stations, park and ride facilities, grade separated bus lanes and rail lines);
2. Transit Buses: bus rolling stock, transit bus stations;
3. Intelligent Transport System (ITS) and Transit Priority Capital Investments;
4. ITS technologies to improve transit priority signalling, passenger and traffic information and transit operations;
5. Capital investments, such as transit queue-jumpers and High Occupancy Vehicle (HOV) lanes;
6. Para transit: rolling stock, fixed capital assets and systems;
7. Related capital infrastructure: bus loading bays, road rehabilitation for bus-only lanes;
8. Active transportation infrastructure (e.g, bike lanes).

7. Allocation to Municipalities

Canada, AMO and Toronto agree that the allocation of public transit funds in Ontario will be based upon 100% ridership, using data accepted by the Ministry of Transportation of Ontario for the allocation of Ontario’s Dedicated Gas Tax for Public Transit Funding Program.

Based on 2003 data, the allocation of public transit funds to eligible Ontario municipalities would be as detailed below:

8. SIGNATURES

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