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METROLINX
Office of the President & Chief Executive Office
Phil Verster
Phi!.Verste'r@metrolin .corn
(.416) 202-590.8
November24, 2017
Chris M,urra.y
City Manager
City of Hamilton
C ty Hall, 2ncl floor, 71 Mai.ri Stfeet
.Hamilton, Ontario.
L8P 4Y5
I ahn pleased to respbn l on behalf of the Province, and M etrolihx to Hamilton City
Council s August T8, 2017 moti n r.eg.aFdihg Hamilton Street Railway {HSR) operating and
maintaining the. Ha ilto Light Rail Tran sit (LRT) system.
This-approac ensure that ProjectCo' considers all he a spScts of pe rrbrma nee including that
bf-operations anil maintenance assets, .and>. iri so doing', i provides a strong inc nti e for
high quality design, hjgh quality'construction, an also for cost effective and efficient long
ter erfor ance..
Metroiihx-.ahd the Province have devoted significant tim and-.effort -tb conSidfer.a'nd .assess"
the Implications of changin the delivery mo el at this stage of the-project, hile ensuring
alue for bhe , a propriate r sktransfer' n co mit e projecttimellpes-are maintain . I
believe that fe bying operations from the. rocurement an assigning the to HSR is not in
97 -Ffonr-Street-West 416.874;5900
Tpr6ntp,.ON MS'J 4E6 metrolinx,-com
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It increases the project s complexity and creates interface, risks bet een ProjectCo
an HSR, w ich will imply a com ercial risk.tp HS E?. Should such, interface .risks not
be resolved during the delivery of the contract, the im lemen atio of ser ices will
be affected and HSR ill incur costs nd liabilities for such delays;.
It can result in.higher operatin costs .due to-the lack of competiti e, .te sion
compare with the DBFOM model where bi ers ro idpa, long term fixed price,
for operations';
To e specific, Pr jec Co will retain.the res onsibilities for daily and lifecycle, maintenance .as
well as fbr c pital rehabilitation of the assets, This is consistent wit the Desig'n-Build-Finahce-
Maintain (,DBFM) LRT rojects-'in.To pnto and Ottawa.
The City wjl! e- ully responsible-.and.accounta le .to Metrofin to operate. he LR-T system wi h
he following, obligations:
> Sa eOperation/dnvmg of Ligh Rail Vehicles (LRVs) in.Tevenu service;
Regulation' and super ision of LRV'operatibns-thrbugh the opera ions control ce t e
(OCC);
. Re'c'ruitmentahd-seleOtion, training, certification an ongoing supervision and
scheduling of ilrivers, OCC .staff an othe , o erations staff;
egulation and super ision of all LRV movern'ents on t e mainline and to/frorn the
Operation's, Maintenance, and Storage Facility;
Provide customer information and assistance (including lost and found, addnessing
customer queries an com laints management);
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Provide full support and assistance to Metrolinx and Project Co. during design
de elopment and delivery phases as required where it pertains to Operations.
The City will also be responsible for and carry the complete and full risk for ensuring that HSR
is capable of fulfilling the above accountabilities and has comprehensive plans to achieve
that state of readiness. Such plans must be shared with Metrolinx by no later than March
2020, given that it typically ta es 4 to 5 years to properly prepare the operational
capabilities. The City will also have to enter into an operations agreement with Metrolinx, by
March 2020, to define the roles and responsibilities of the parties, the service and
performance standards, the commercial responsibilities as well as the interface requirements
between HSR, Metrolinx and ProjectCo.
This approach is consistent with the Toronto and Ottawa LRT projects - where the local transit
agency will operate the LRT services.
Until the City formally agrees to all the provisions in this letter, Metrolinx will continue to
proceed on the assumption that the project will be delivered through a DBFOM model with
ProjectCo delivering the operations. If the City wants to change to a DBFM model with HSR
delivering the operations, I would ask that the City formally confirm agreement to all the
conditions in this letter, supported by a Council resolution, by January 24, 2018.
I appreciate the patience shown by the City and trust this response demonstrates the
commitment of the Province and Metrolinx to the LRT project and our willingness to consider
the City s requirements.
Sincerely,
Phil Vbrster
President & Chief Executive Officer