Kitchener's Light Rail Transit Plan Awards its First Contract for Work

Regional council can start spending big on rail transit, after getting the green light from senior governments.

After completing reviews of the project, the federal and provincial governments have agreed in principle to share costs incurred after April 1.

Senior governments have pledged up to $565 million toward the $818-million project, the largest public work ever undertaken in the region.

Council has responded by hiring an international engineering firm. The consulting contract to Parsons Brinckerhoff Halsall Inc. is worth $17 million by 2015 and up to $31 million if extended to 2018.

“This is a very important milestone,” Kitchener Coun. Jim Wideman said.
The New York-based engineering firm will help regional government prepare design criteria for a different private partner who will be chosen by council in 2014 to design, build and operate trains for up to 30 years. As well, the firm will help guide public consultation, utility relocations and bus design in Cambridge.

Council had been awaiting the go-ahead on cost-sharing before approving the large consulting contract. Provincial Transportation Minister Bob Chiarelli gave his green light in a March 21 letter. He wrote: “The approval in principle follows the successful completion of the provincial review of the project.” View Provincial Letter (.pdf file)

Federal Transportation Minister Denis Lebel gave his green light in an April 17 letter. He wrote: “This approval is given following a successful review of your project …” View Federal Letter (.pdf file)

“That’s absolutely key,” Wideman said. “We were sure we were going to get it. But until you have it, you don’t have it.”

Regional council is installing street-level electric trains (LRT) in Kitchener and Waterloo, to draw buildings to central neighbourhoods and persuade people to get out of their cars. Cambridge gets enhanced buses in 2014. Trains launch in 2017.

Parsons Brinckerhoff Halsall declined comment Monday from its Toronto office, saying its contract is not signed. A council report calls it “the premier LRT engineering firm in the world.”
The firm with more than 15,000 global employees beat out four competitors for the regional job. World headquarters is in New York City. The corporate website says the firm has been involved in 22 rail transit projects, largely in the U.S. but also in Asia, Egypt and the U.K.

“They just rose to the top in terms of their experience,” said Wideman, who helped select the engineering consultant.

Ontario approved rail transit after its planners struggled to understand the high cost and low benefits of trains, according to documents obtained by The Record in a freedom-of-information request. The federal government has demanded more time to respond after The Record sought access to its project review.

By 2018, it’s estimated an average house valued at $254,000 will have paid $821 in regional taxes to launch rail transit.

What’s next?

This month: Launch design of enhanced Cambridge buses.
October: Request qualified partners to design, build and operate trains.
February 2013: Shortlist potential private partners and finalize funding agreements with senior governments.
March 2013: Invite private partners to bid on rail transit.
June 2013: Start building Cambridge bus system.
January to May 2014: Select private partner to design, build and operate trains for up to 30 years, and approve final contract.
2014: Launch Cambridge buses, launch rail transit construction.
2017: Trains start rolling in Kitchener and Waterloo, between the Fairview Park mall and the Conestoga Mall.

This article appeared in the record.com on May 1, 2012