The City of Toronto has done due diligence to ascertain whether a pricey infrastructure project will actually cost as much as Metrolinx says it will — and the answer appears to be yes.
In August, Metrolinx pegged the cost of doubling the length of the West Toronto Railpath Extension at $149 million. It was originally billed at $23 million back in 2006.
LEA Consulting was recruited to provide the city with a third-party review of Metrolinx’s cost estimate for the railpath extension after some city councillors balked at the transit agency’s quote.
In 2017, the city granted Metrolinx the authority to design and construct the project, which includes a 2.1-kilometre extension to the railpath as well as four new bridges, two public plazas and seven entrances for cyclists and pedestrians.
In August, Coun. Josh Matlow called Metrolinx’s $149-million price tag “unreasonable,” while his colleague Coun. Brad Bradford demanded "better value for money for taxpayers."
Based on LEA Consulting’s line-by-line review of the West Railpath Extension cost estimate and the assumptions that went into those calculations, the city determined Metrolinx’s forecast “is in the appropriate range for all cost categories.”
To avoid preempting the competitive bidding process, LEA did not provide monetary figures for how much various aspects of the project would cost. Instead, it calculated how they compare to industry averages.
For example, construction costs could either be six per cent higher than Metrolinx’s estimate or nine per cent lower.
“Metrolinx cost estimates are generally within industry standard, leaning towards the upper end,” said a staff report from the city’s Transportation Services division. “For the purpose of budget determination, this conservative approach provides some assurance that sufficient budget is being allocated.”
The city also expects some costs may go down as a result of the competitive bidding process. A tender for the railpath extension is expected to be released in January.
The federal government provided Toronto with a $23-million active transportation grant to help finance the railpath extension. Another $31 million will come from development charges, leaving the city still on the hook for the final $94.5 million.
After construction contracts are awarded next spring, the project is expected to take another three years to complete.
The city’s executive committee will consider the staff report and LEA’s cost analysis at its meeting next week.
