The Commission will
discuss and vote on the staff recommendation at its meeting this
Monday, April 27.

The TTC purchased 248 streetcars in the 1970s and 1980s, and these
vehicles now need to be replaced, as the ageing fleets are nearing the
end of their useful lives. They are not accessible, their reliability
is steadily declining, and maintenance costs continue to rise.

The new
LRVs will be low-floor, quieter, have features such as air conditioning
for greater customer comfort, and be able to carry almost twice as many
people as the TTC’s current streetcars do.

The new vehicles will help
address crowding on the TTC’s streetcar routes, and accommodate
ridership growth. The new LRVs will also have leading-edge technology
for better reliability and performance.

Sealed bids were received by the TTC in February this year by two
vendors, Bombardier Transportation Canada Inc. and Siemens Canada

Both met all commercial and technical requirements. A
recommendation to award this contract to Bombardier is, therefore,
based on price. Bombardier’s base price is $993 million. Another $293
million is factored in for the cost of spare parts, such as cab and
bogie (wheel and axle) assemblies, HVAC, traction controller and
motors, foreign exchange; escalating costs over the life of the
contract; and any unforeseen changes required to the design of the new
LRVs. These costs include GST. After a GST rebate, the total
expenditure will be $1.22 billion.

The contract, if awarded by the Commission, also allows for an
option to purchase up to 400 LRVs for the new Transit City network.
Awarding of the contract for the 204 replacement vehicles, however, is
contingent on funding. As of today, no funding commitment has been made
by either the provincial or federal governments. Bombardier’s bid price
is guaranteed until June 27, 2009.

The delivery plan for the 204 LRVs calls for a prototype vehicle to
be delivered to the TTC in 2011. LRVs for passenger service will begin
to arrive in 2012. All 204 cars will be delivered by 2018. The TTC will
also require a new maintenance facility for the LRVs at an estimated
cost of $345 million, which is not part of this contract.