2014 Base Plan and Outlook

Transcription

1 2014 Base Plan and Outlook Transportation and Financial Base Plan for 2014 to 2016 and Outlook for 2017 to 2023 For the purpose of the BC South Coast British Columbia Transportation Authority Act, this 2014 Base Plan and Outlook constitutes the Base Plan prepared in 2013 for the 2014 to 2016 period and the Outlook for the 2017 to 2023 period. This Plan will serve as TransLink s 2014 Strategic Plan. October 30, 2013 Approved by the TransLink Board and submitted to the Mayors Council on Regional Transportation and the Regional Transportation Commissioner.

2 TransLink Board Members Nancy Olewiler, Board Chair Howard Nemtin, Board Vice Chair Robin Chakrabarti Rick Christiaanse Lorraine Cunningham W. John Dawson Barry Forbes Don Rose Marcella Szel About TransLink The South Coast British Columbia Transportation Authority ( TransLink ) is Metro Vancouver s regional transportation authority. TransLink is responsible for regional transit, cycling, roads, goods movement and commuting options, as well as AirCare and Intelligent Transportation System programs. Transit services are delivered through operating companies, including Coast Mountain Bus Company, British Columbia Rapid Transit Company and third party contractors. TransLink also shares responsibility for the Major Road Network (MRN) and regional cycling with its municipal partners in Metro Vancouver. TransLink is the first North American transportation authority to be responsible for planning, financing and managing all public transit in addition to major regional roads, bridges and cycling. About the 2014 Base Plan Under the South Coast British Columbia Transportation Authority Act ( SCBCTA Act ), TransLink is required to prepare a three year base plan and seven year outlook every year. The base plan is guided by TransLink s long term transportation strategy, and aims to support progress toward the Provincial Transit Plan, Metro Vancouver s Regional Growth Strategy (RGS), provincial greenhouse gas reduction targets and municipal plans. The base plan, as modified by any supplemental plans approved by the Mayors Council on Regional Transportation, forms TransLink s strategic plan for that year. This document constitutes TransLink s 2014 Transportation and Financial Base Plan and Outlook ( 2014 Base Plan ). The 2014 Base Plan is an update to the 2013 Strategic Plan (the 2013 Base Plan as modified by the 2013 Supplemental Plan). It identifies the strategic initiatives, programs, investments and services that TransLink intends to pursue from 2014 through 2016 (the plan period ), drawing only on established funding resources. It also identifies the services TransLink plans to provide and the major capital projects TransLink plans to complete from 2017 through 2023 (the outlook period ). Caution regarding forward-looking statements From time to time, TransLink makes written and/or oral forward looking statements, including in this document and in other communications. In addition, representatives of TransLink may make forward looking statements orally to analysts, investors, the media and others. Forward looking statements, by their nature, require TransLink to make assumptions and are subject to inherent risk and uncertainties. In light of the uncertainty related to the financial, economic and regulatory environments, such risks and uncertainties, many of which are beyond TransLink s control, and the effects of which can be difficult to predict, may cause actual results to differ materially from the expectations expressed in the forward looking statements.

3 TABLE OF CONTENTS Summary and Context 1 What s in the Plan Funding the Plan 2 4 A Renewed Vision: Regional Transportation Strategy Looking Ahead Invest Strategically 9 Transit Services 9 Roads, Bridges and Bicycle Investment Program 13 Summary of Capital Expenditures 18 Unfunded Needs Manage the System Transit Services AirCare Multi Modal Programs TransLink Corporate and Transit Police 25 Efficiencies Partner to Make It Happen 29 Getting Land Use Right The Goods Movement Strategy Real Estate Program 30 Pass Programs Funding the Plan: Revenue Sources User Fees Taxation Sources 33 Senior Government Contributions Interest Income Achieving Our Goals 37 Outcomes Key Performance Indicators Conclusion 43 Appendix A: Financial Information Debt Service Funding Adjustment Cash Flow Statement Balance Sheet 46 Key Assumptions Risk Assessment and Sensitivity Analyses Appendix B: Financial Tables 50 Appendix C: Consultation Summary 59

4 TABLES Table 1: Total Transit Service Hours by Service Type (thousands)... 9 Table 2: Transit Operations Expenditure Forecasts (millions) Table 3: Overview of Station Upgrades for Which Capital Funding Is Secured Table 4: Summary of Roads Capital Expenditures (millions) Table 5: Summary of Roads Operating Expenditures (millions) Table 6: 2014 to 2016 Capital Cash Flow (thousands) Table 7: Major Capital Projects in the 2014 Base Plan (thousands) Table 8: TransLink Corporate and Transit Police Expenditures (millions) Table 9: Efficiency Measures in the 2013 Base Plan and 2014 Base Plan* (millions) Table 10: Summary of Revenues (millions) Table 11: Transit Revenue Projections (millions) Table 12: Golden Ears Bridge Toll Rates (July 2013 July 2014) Table 13: Property Tax Projections (millions) Table 14: Senior Government Contribution Forecasts for Capital and Operations (millions) Table 15: Ridership Forecasts (millions) Table 16: Key Performance Indicators Table 17: Debt Service Expense (millions) Table 18: Funding Adjustments (millions) Table 19: Key Assumptions for the 2014 Base Plan Table 20: Consolidated Statement of Financial Position (thousands) Table 21: Statement of Operations (millions) Table 22: Funded Statement of Operations (millions) Table 23: Consolidated Statement of Cash Flows (thousands) Table 24: Projected Borrowing Compared to Borrowing Limit and Select Financial Ratios (millions) Table 25: Capital Cash Flows Projects Approved and Proposed (thousands) Table 26: Transit Service Hours (thousands) Table 27: Schedule of Golden Ears Bridge Toll Rates Table 28: Schedule of Transit Fares FIGURES Figure 1: Improved Operating Efficiencies... 2 Figure 2: 2014 Revenue... 4 Figure 3: Fuel Consumption Forecast... 4 Figure 4: Metro Vancouver Population Growth: Figure 5: RTS Strategic Framework... 6 Figure 6: Service Hours per Capita... 7 Figure 7: Regional Weekday Mode Share from the 2011 Trip Diary Figure 8: Transit Mode Share Trends and Forecasts Figure 9: Percentage Change in Personal Vehicle Kilometers Travelled Through the Plan and Outlook Periods Figure 10: Cumulative Funded Surplus Level Forecasts for 2013 through Figure 11: Debt Level... 47

5 2014 Base Plan and Outlook 1 SUMMARY AND CONTEXT As the first transportation authority in North America to integrate management of regional transit, roads, cycling, and goods movement, it is TransLink s mandate to plan and provide for the transportation needs of Metro Vancouver residents and businesses. This includes daily commuters, periodic travellers and the goods haulers who support regional and national economic prosperity. TransLink also has a statutory responsibility to produce a three year Base Plan and seven year Outlook, annually. Development of the Base Plan and Outlook must be guided by TransLink s long term transportation strategy. The Base Plan and Outlook also aims to support the Provincial Transit Plan, Metro Vancouver s Regional Growth Strategy, provincial greenhouse gas reduction targets and associated municipal plans. This 2014 Base Plan and Outlook shows TransLink to be performing well and under budget for 2013, and despite revenue challenges, meeting the commitments laid out in last year s plans. On the transit side, TransLink s bus, SeaBus, SkyTrain, and West Coast Express services continue to earn an all time high customer satisfaction rating of 7.7 out of 10. The ongoing management of the Major Road Network continues to improve regional traffic flow, and facilitate the timely and reliable movement of goods and services. And TransLink is having continued success in partnering with municipalities to improve and connect cycling infrastructure. Given that TransLink s principal sources of revenue for a base plan are limited by statute (in the case of transit fares and property taxes) or projected to decline (in the case of fuel tax revenue), the major challenge in the Plan and Outlook period will be to extend TransLink s success in improving service through efficiencies. While the TransLink rapid transit network continues to expand with the construction of the 11 kilometre Evergreen Line from Lougheed Town Centre to Lafarge Lake Douglas Station in Coquitlam, this Plan anticipates no further expansion in bus, SeaBus or West Coast Express services. Similarly, on the Major Road Network, the Base Plan concentrates on maintaining the safety and serviceability of current infrastructure, and integrating new elements (such as the South Fraser Perimeter Road) smoothly as they come on stream. Metro Vancouver residents and businesses have high expectations for their transportation network and great aspirations for its future; there are numerous pressing projects on the regional priority list. The region is also expected to welcome a million new residents, and support half a million new jobs, between now and As is evident in the Base Plan analysis of Metro Vancouver s Regional Growth Strategy and TransLink s Regional Transportation Strategy, new funding sources will be needed to accommodate current demands and future growth. In that regard, the Provincial Government has mandated a public referendum in 2014 to help guide future funding decisions. This Base Plan provides a picture of where we are today, and an opportunity to think about where we want to be tomorrow.

6 Base Plan and Outlook What s in the Plan TRANSIT Operational Efficiency Since 2010, TransLink has consistently improved its operational efficiency: current operating costs per passenger are lower; revenue per passenger is higher; boardings per service hour are higher; and cost recovery has improved. These gains reflect a wide range of efficiency measures. For example, in 2012, TransLink s Coast Mountain Bus Company reallocated 56,000 hours of bus service from under utilized routes to areas of otherwise under served high demand routes. This enabled TransLink to increase bus boardings per service hour by 3.4 per cent while at the same time reducing the cost per boarded passenger by 2.2 per cent. Figure 1: Improved Operating Efficiencies Other efficiencies include the adjustment of schedules to reduce route and driver down time, the rightsizing of fleet vehicles to ensure the most appropriate and affordable vehicle is used on every route, and the centralizing of dispatch and administration. The new Hamilton Transit Centre in Richmond, which will be operational in 2015, will increase dispatch efficiency yet further. In its custom transit services, TransLink successfully reduced the HandyDART fleet size by 14 vehicles (4%) while maintaining the same level of service. Under the Base Plan, HandyDART will reduce the fleet further this year, again while maintaining ridership. Service Improvements As included in the 2013 Base Plan, TransLink has added 109,000 additional bus and SeaBus service hours this year, including the new King George Boulevard B Line service between Newton Exchange, Surrey City Centre and Guildford Town Centre. The Highway 1 Rapid Bus (route 555), connecting Carvolth Exchange and Braid SkyTrain Station over the new Port Mann Bridge, began operating in December 2012, and will be extended to Lougheed Town Centre SkyTrain Station once the Highway 1 ramps at Government Street are complete. And in 2016, service will commence on the Evergreen Line, connecting Lougheed Town Centre to Coquitlam. Capital Expenditures Although no major new service expenditures are contemplated, the 2014 Base Plan includes significant expenditures for fleet improvement and capital upgrades for rapid transit, bus exchanges and park andride assets. These include: $245.5 million for the replacement of conventional buses $10.7 million for community shuttles $156 million for the Expo Line upgrade

7 2014 Base Plan and Outlook 3 Additional capital has also been set aside for trolley overhead system replacement. Construction of the Evergreen Line is being led by the Province, with TransLink providing a financial contribution. Capital expenditures during the Base Plan period that will complement the new Evergreen Line include six new stations, bus exchanges, park and rides, and roadworks. These will be complete for the start of Evergreen Line operations in Operational changes will also adjust bus connections and improve the functionality of the West Coast Express, whose riders will have an option to connect to SkyTrain through the Evergreen Line. Compass Card and Fare Gates TransLink is Beta testing the new Compass Card and Fare Gate system to optimize the transition to this new service option. The Compass Card, which will replace the current one time use cards, is designed to increase customer convenience, improve fare collections (reducing fare evasion), improve safety and security, and improve service quality through data analysis. Transit Police Improved efficiency has reduced Transit Police per officer costs to among the lowest of any independent police agency in Metro Vancouver. In 2012, for example, Transit Police reduced overtime costs by 32 per cent and helped improve the perception of system safety by 16 per cent. The Base Plan proposes zero growth in the number of officers in the force. MAJOR ROAD NETWORK The 2014 Base Plan includes $25.7 million annually for Operating and Maintenance and $18.4 million annually for Rehabilitation of the Major Road Network, which includes more than 2,300 lane kilometers of regionally significant roadways. Pattullo Bridge The 2014 Base Plan identifies up to $299 million in funding to mitigate seismic risk and address the condition of the bridge deck (potentially through full deck replacement) in order to maintain the structural integrity of the Pattullo Bridge. This funding level is higher than in the 2013 Base Plan to reflect new information about the state of the bridge deck, which will need to be addressed sooner than previously expected. A joint review with municipal, regional and provincial partners is underway for the Pattullo Bridge. This review will define the most appropriate solution for the long term and will determine the scale of the work to be undertaken in the near term. Public consultation on this review will continue into Goods Movement TransLink is committed to providing an efficient Major Road Network and to making it easier and more convenient for people to move from personal automobiles to walking, cycling and transit, leaving the roads clearer for the movement of goods and services. TransLink is preparing a draft Goods Movement Strategy for a fall 2013 consultation on ways to foster collaboration and consistency on goods movement policies, regulations and strategies. These include investment, management and partnership activities. TransLink will then work with partners in 2014 on implementation.

8 Base Plan and Outlook Cycling The 2014 Base Plan includes $1.55 million annually for a cost sharing program with municipalities in which TransLink contributes up to 50 per cent of capital costs for regional cycling upgrades. Also, TransLink has allocated funding to rehabilitate the BC Parkway, and construct secure bicycle parking structures to replace some of the aging bicycle lockers located at park and ride lots, transit exchanges and SkyTrain stations. Funding the Plan TransLink has found efficiencies sufficient to come in under budget in the last fiscal year and is on track to do so again this year. But population and inflation pressures are outstripping revenue increases, which has required special measures (including the sale of real estate assets) to stay within budget during the Base Plan and Outlook period. Figure 2: 2014 Revenue Total annual revenues are expected to be $1.44 billion in 2014, rising to $1.60 billion in REVENUES Three sources of revenue comprise 80% of all available TransLink income: Transit Fares, $518 million in the 2014 budget; Fuel Taxes, $338 million; and Property Taxes, $305 million. Under a base plan, both Fares and Property Tax increases are limited by statute to a degree that is inadequate to keep pace with the combination of inflation and population growth. Fuel Tax revenue has been dramatically affected by the general move toward fuel efficient vehicles, more walking, cycling and transit use, and leakage of fuel purchases to areas outside the region. There was a sharp decline in fuel consumption in Metro Vancouver in 2011 and Figure 3: Fuel Consumption Forecast 2012, a trend that is reflected in other parts of North America. Accordingly, TransLink has significantly lowered its forecast for fuel volume sales, anticipating a Fuel Tax revenue drop of $35 million during the Outlook period. Although other sources of revenue are technically available, TransLink requires Provincial Government approval to access any of these. Accordingly, adding or increasing services beyond what can be achieved through efficiency must await the outcome of the 2014 referendum on public preference for new funding sources.

9 2014 Base Plan and Outlook 5 A Renewed Vision: Regional Transportation Strategy According to legislation, TransLink s Base Plan and Outlook must be guided by its long term Regional Transportation Strategy (RTS). In collaboration with governments, stakeholders and the public, TransLink recently updated that strategy, previously called Transport The resulting RTS Strategic Framework, approved in July 2013, sets out an approach for accommodating the one million additional residents and supporting the 500,000 additional jobs expected in the region by This rise in residents and jobs will increase system demand from six million trips per day to nine million trips per day over this period. An overview of the RTS Strategic Framework is presented in Figure 5. Figure 4: Metro Vancouver Population Growth:

10 Base Plan and Outlook Figure 5: RTS Strategic Framework

11 2014 Base Plan and Outlook 7 Three high level strategies will be essential in achieving regional goals: Invest, Manage, and Partner. The first, Invest, is most obvious and most dependent upon new sources of revenue. There is a growing list of projects and service improvements on the regional priority list, including rapid transit lines in Surrey and along the Broadway corridor in Vancouver. Much of TransLink s planned investment is focused on maintaining the services and infrastructure currently in place. The second, Manage, also has funding implications. One of the most effective ways to manage traffic flows, for example, is with pricing that encourages people and businesses to use the system more efficiently, for example by avoiding peak hours or areas of potential congestion, whether on the road or transit network. For the purposes of the 2014 Base Plan and Outlook, TransLink has concentrated on optimizing the management of its own assets and areas of responsibility. The third strategy, Partner, recognizes that TransLink is a service provider to and partner with every municipality in the Metro Vancouver region and that our mutual success depends heavily on the extent of our collaboration. This is particularly true in the case of land use decisions that affect the provision and efficiency of transportation. Accordingly, TransLink will continue working with all of its partners, at every level of government, as well as the public and stakeholders to provide the best range of transportation options and to support land use decisions that promote a compact urban area that functions well and preserves valuable natural and agricultural spaces in the region. Looking Ahead This 2014 Base Plan sets out a path to pursue the three high level RTS strategies of Invest, Manage and Partner over the Plan and Outlook periods. The Outcomes section highlights areas of progress and priorities for future attention, to support the RTS goals of Choice, Economy, Health and Environment. Figure 6: Service Hours per Capita The number of people using transit is expected to continue to grow; however, current funding levels cannot keep pace with RTS targets. For example, increases in transit services since 2009 have been overtaken by population growth. Per capita service levels have begun to decline and will continue to do so without new funding. The 2014 Base Plan and Outlook recognize this reality while continuing to align programs and strategies with long term capital priorities. There are clear and urgent public and political calls for more investment, specifically the desire for rapid transit in Surrey and along the Broadway corridor in Vancouver, as well as the need for more bus service across the region and more investment in roads and cycling. The dialogue with the region on the RTS and the feedback generated in the 2014 provincially mandated referendum will be important in clarifying what future the region wants, as well as the options stakeholders and taxpayers prefer. This will ensure our region can achieve that future in a timely and affordable way.

12 Base Plan and Outlook Structure of the 2014 Base Plan Document 1. Invest Strategically, 2. Manage the System, and 3. Partner to Make it Happen In keeping with the RTS Strategic Framework, the services, programs, and infrastructure investment commitments in this plan are organized under the three high level RTS strategies. 4. Funding the Plan: Revenue Sources This section explains how investments will be funded. 5: Achieving Our Goals This section describes the outcomes and performance expectations of the 2014 Base Plan investments.

13 2014 Base Plan and Outlook 9 1. INVEST STRATEGICALLY Invest strategically to maintain and grow the transportation system is the first of three core strategies in the RTS Strategic Framework. This section summarizes the expenditures TransLink will make over the 2014 Base Plan and Outlook periods to invest in maintaining our current services and infrastructure. Some improvements are included; however, given our available resources, no new infrastructure or service investments are introduced in this plan. Transit Services TransLink s integrated transit system meets the needs of diverse markets with services of various levels of frequency, speed and daily span, provided by bus, rail, marine, commuter rail and custom transit. No new service hours are proposed under the 2014 Base Plan. Total service hours in 2014 are 6.8 million, which is slightly lower than in 2013 because of reduced non revenue hours from scheduling efficiency improvements. As part of ongoing efficiency and optimization programs (outlined in the Manage the System section, starting on page 19), TransLink will continue to lower total vehicle hours while maintaining existing service. Table 1 below summarizes proposed service hours by service type. Table 1: Total Transit Service Hours by Service Type (thousands) Actual Budget Forecasts Outlook Service Hours in Thousands Conventional Bus 4,239 4,233 4,165 4,163 4,163 4,134 Community Shuttle West Vancouver Conventional Bus SkyTrain Expo and Millennium Lines 1,149 1,126 1,096 1,096 1,096 1,096 SkyTrain Canada Line SkyTrain Evergreen Line Rapid Transit Total 1,345 1,322 1,292 1,292 1,339 1,428 SeaBus West Coast Express Total Conventional Transit 6,335 6,310 6,248 6,275 6,326 6,419 Custom Transit (HandyDART) Total Service Hours 6,927 6,908 6,846 6,873 6,924 7,017 TRANSIT OPERATIONS EXPENDITURES Transit operating expenditures are forecast at $896.4 million in 2014, increasing to $953.4 million in Operating costs for bus and SkyTrain Canada Line transit services are held constant in 2014 reflecting continued focus on operational efficiency and effectiveness and then grow with inflation from 2015 onward. SkyTrain Expo and Millennium line and West Coast costs increase 4.2 per cent in 2014 before returning to inflationary level increases. These increases are driven by initiatives to improve maintenance and asset management practices, contracted service increases and impacts from the Evergreen line project. The operating expenses associated with the Evergreen Line are based on operation starting in late summer of 2016.

14 Base Plan and Outlook Table 2: Transit Operations Expenditure Forecasts (millions) Actual Budget Forecasts Outlook Bus $ $ $ $ $ $ SkyTrain Expo/Millennium Lines & West Coast Express $ $ $ $ $ $ SkyTrain Canada Line * $ $ $ $ $ $ SkyTrain Evergreen Line ** $ $ $ $ $ 14.5 $ 18.4 Capital Infrastructure Contributions $ $ 8.6 $ $ $ $ Total Operations $ $ $ $ $ $ 1,042.3 * The Canada Line expenditures include payment to the concessionaire to cover its operating expenditures and capital repayments, which are elevating the average annual growth rate metric. ** Evergreen Line operating costs in 2016 are for start up. The Evergreen Line will go into service in BUS AND SEABUS SERVICES The 2013 Base Plan introduced 109,000 additional annual bus and SeaBus service hours. All of these hours have now been implemented, including the new King George Boulevard B Line service, which started in September 2013 and operates between Newton Exchange, Surrey City Centre and Guildford Town Centre. The Highway 1 Rapid Bus (route 555) operating over the Port Mann Bridge, connecting Carvolth Exchange and Braid SkyTrain Station, began operating in December This service will be extended to Lougheed Town Centre SkyTrain Station once the Highway 1 ramps at Government Street are complete. No new revenue service hours are planned for the plan period. Over the Plan period, TransLink has committed $245.5 million in capital expenditures for the replacement of conventional buses, and $10.7 million for community shuttles. Capital has also been set aside for trolley overhead system replacement. CUSTOM TRANSIT TransLink s Custom Transit services provide transportation for customers who cannot use conventional transit without assistance. The Custom Transit program includes: HandyDART (a shared ride, pre booked, door to door service that uses specialized lift equipped vehicles for registered people with temporary or permanent disabilities) HandyCard (a prequalified program for people with permanent disabilities that provides concession fares on conventional transit, the ability to bring an attendant on conventional transit for free and the opportunity to buy TaxiSaver coupons) TaxiSaver (a taxi subsidy available for people who qualify for HandyCard) HandyDART is an on demand service, so service hours fluctuate based on demand. The budgeted envelope of available service hours, however, will remain constant over the three year Plan period. Custom transit provided 1.38 million passenger trips in 2012, for which TransLink currently operates 318 custom transit vehicles. As a result of improved efficiency and asset use, TransLink reduced the fleet size by 14 vehicles from 2011, and in August 2013 it will cut eight more vehicles while still providing the same level of service. To maintain the custom transit service in a state of good repair, approximately 15 per cent of the fleet is replaced every year. Approximately 160 HandyDART vehicles will be retired over the three year Plan period and will be replaced with a new mix of vehicles chosen to suit customer demand. A trial of smaller, van based vehicles was conducted in 2013, but these were not found suitable for the type of service currently provided.

15 2014 Base Plan and Outlook 11 TransLink also began a taxi pilot project in April 2013 that reallocated 10,000 hours of budgeted HandyDART service to taxis under specific conditions. Supplementary taxis are used where HandyDART is unable to provide the requested service effectively or economically. Taxis were used for less than two per cent of annual HandyDART service hours, and we expect that through diverting these 10,000 service hours to taxis, HandyDART will provide an additional 7,000 customer trips at the same cost. The program will be monitored for effectiveness. In 2014, TransLink will continue work on the Custom Transit Service Delivery Model Review initiated in 2013 to ensure a sustainable custom transit delivery model that can adapt to the varied transportation needs of customers. RAPID TRANSIT TransLink s rapid transit system consists of three high capacity rail services in dedicated rights of way: the Expo Line, the Millennium Line and the Canada Line. Under the 2014 Base Plan, service on the Expo, Millennium and Canada Lines will be maintained at 2013 levels. There are a number of state of good repair projects on the Expo Line initiated in 2013 that will continue in Those projects will replace 34 kilometers of original power rail that supplies SkyTrain vehicles with power, and six switch controllers that allow trains to change tracks. These projects will ensure that the Expo Line continues to provide reliable service. TransLink will also refurbish 114 Mark I cars to extend their service life by 15 years. Evergreen Line Program In 2012, the province s Evergreen Line Project Office awarded the major design build contract for the 11 kilometer extension of SkyTrain line from Lougheed Town Centre to Lafarge Lake Douglas Station in Coquitlam. The project includes six new stations, bus exchanges, park and rides, and roadworks. The extension will be complete and in service by the late summer of TransLink plays three roles on the project: future operator, contributing partner and transit service provider during construction. TransLink s responsibilities include design review and construction support; testing and commissioning systems and infrastructure; procuring additional SkyTrain vehicles; and working with the contractor on temporary facility and service adjustments to maintain service during construction. Evergreen Line Multi Modal Integration Integration of the Evergreen Line will require upgrades across the transportation network. TransLink is responsible for the multi modal integration projects within the 2014 Base Plan period as identified below: Commercial Broadway Station upgrades to accommodate expected traffic from the Evergreen Line as well as growth in the local population and employment Development of Evergreen Line station area plans in collaboration with municipalities Wayfinding improvements to inform customers of the new operating pattern and make navigation easier

16 Base Plan and Outlook Station Upgrades TransLink has begun making station upgrades on the Expo Line to improve capacity, accessibility, and customer amenities, and to implement fare gates. The $156 million upgrade program outlined in Table 3 is consistent with the Provincial Transit Plan and Expo Upgrade Strategy. It has received $123.6 million in funding from the federal and provincial governments. Table 3: Overview of Station Upgrades for Which Capital Funding Is Secured Station Status Select Project Elements Expected Completion Main Street Science World Scott Road New Westminster Commercial Broadway Metrotown Joyce Collingwood Under construction Under construction Detailed design Detailed design Detailed design New east station house with escalator and elevator access Reconfigured west station house Additional retail and bike parking Bus exchange and park and ride modifications Station accessibility and customer amenity improvements Replacement of end of life station elements Upgraded lighting and finishes Replacement of mesh screens with glazing Additional inbound Expo Line platform, new footbridge, and associated stairs, escalators and elevators Widened crossing of the Grandview Cut Upgraded bus passenger waiting areas New east, west and central station houses Up and down escalators and expanded elevator capacity Reconfigured and expanded bus exchange Planning High priority capacity and accessibility upgrades to be identified Surrey Central Planning High priority capacity and accessibility station upgrades to be identified Station improvements coordinated with planning for reconfigured bus exchange 2016 Station and Exchange Planning In addition to the station upgrade projects, TransLink has an active program of station and exchange planning to identify future facility requirements and respond to proposals for modification by others. Planning is underway or complete for the following stations: Brentwood Town Centre (redevelopment) Richmond Brighouse Exchange (new facility) Phibbs Exchange (upgrade) Langley Centre and Willowbrook exchanges (new facilities) Lougheed Town Centre (redevelopment) Lonsdale Quay (upgrade)

17 2014 Base Plan and Outlook 13 Surrey Central Exchange (upgrade) Burquitlam Station and exchange (new facility) Planning will consist of identifying functional requirements for each facility and applying the TransLink Transit Passenger Facility Design Guidelines and Transit Oriented Communities Design Guidelines in cooperation with local municipalities and other stakeholders. The timing for implementation of some elements depends on how funding is allocated in future plans. WEST COAST EXPRESS The 20 year service agreement between TransLink and the Canadian Pacific Railway to operate the West Coast Express expires in Negotiations for renewal are expected to be complete within the Plan period. In 2013, TransLink completed the West Coast Express Strategy, which considers the likely interaction of the West Coast Express with the Evergreen Line and other travel markets in the same corridor. The preferred path for service and infrastructure improvements will be selected and confirmed in concert with the service agreement renewal process. West Coast Express service levels, including TrainBus, will be maintained at 2013 levels throughout the Plan period. Roads, Bridges and Bicycle Investment Program TransLink s mandate is to provide a multi modal regional transportation system that moves people and goods. This includes supporting the overall efficiency of the road network to serve drivers, cyclists and pedestrians. TransLink has responsibilities to: Establish guidelines to identify which roads can become part of the Major Road Network (MRN) Establish standards for managing, operating, building and maintaining the MRN Review and approve all proposed changes that could result in a reduction of people moving capacity on the MRN Designate routes and times for dangerous goods movement on the MRN Approve the municipal prohibition of truck movements from any road in the region (including non MRN roads) Provide funding as outlined in Table 4 and Table 5

18 Base Plan and Outlook Table 4: Summary of Roads Capital Expenditures (millions) ITEM Municipally Owned Regional Road and Bicycle Assets TransLink Owned Road and Bicycle Assets Rehabilitation $18.4 $18.4 $18.4 Upgrades MRN Upgrades Bicycle (BICCS) $1.55 $1.55 $1.55 Pattullo Bridge Annual Repairs Capital $3.0 $3.0 0 Pattullo Bridge Project Capital $22.0 $78.0 $77.0 Bike Asset Capital $1.0 $1.0 $1.0 TOTAL CAPITAL $45.95 $ $97.95 Table 5: Summary of Roads Operating Expenditures (millions) ITEM Municipally Owned Regional Road and Bicycle Assets Operating and Maintenance $25.7 $25.7 $25.7 Golden Ears Bridge Tolling TransLink Owned Road $6.1 $6.4 $6.9 Operation and Bicycle Assets Other Bridges Operating $1.8 $1.5 $1.5 TOTAL OPERATING $33.6 $33.6 $34.1 FUNDING FOR MUNICIPALLY OWNED REGIONAL ROAD AND BICYCLE ASSETS The Major Road Network (MRN) encompasses the major municipally owned arterial corridors in the region and connects the provincial highway system with the local road network. The MRN enables people to access major destinations through the efficient movement of buses and longer distance auto travel, and forms the backbone for the movement of goods throughout the region. Some MRN corridors also serve significant volumes of cyclists and pedestrians. TransLink assists with the management and operations of the MRN through the funding and investment programs described below. MRN Operations, Maintenance and Pavement Rehabilitation TransLink works with municipalities to ensure the MRN is in a state of good repair for the efficient movement of people and goods. TransLink provides operating funding for the operation and maintenance of the MRN, which is distributed to the municipalities, which then undertake the necessary work. The amount of funding is based on the number of MRN lane kilometers within each municipality; for 2014 there are approximately 2,300 total lane kilometers across the region, and TransLink s contribution is $11,140 per lane kilometer. TransLink has budgeted a total of $25.7 million in operating funding.

19 2014 Base Plan and Outlook 15 TransLink also contributes capital funds for pavement rehabilitation, which in 2014 is budgeted at $7,960 per lane kilometer, for a total of $18.4 million. In 2013, TransLink introduced flexible terms for municipalities by allowing them to transfer TransLink funds between operations and maintenance funding and the rehabilitation funding. The annual budget is adjusted based on municipal requests, up to the total amount available. In 2014, TransLink will conclude a review of the actual recent costs incurred by municipalities for the operation, maintenance and pavement rehabilitation of the MRN. TransLink will adjust future Operating, Maintenance and Rehabilitation (OMR) payments in consultation with the municipalities and in accordance with TransLink s mandate and long term goals. MRNB Minor Capital Program (Upgrades to the Regional Road and Bicycle Networks) TransLink has a cost sharing program to contribute up to 50 per cent of eligible capital costs to upgrade roads on the MRN and bicycle infrastructure anywhere on the transportation network. Funds are allocated to each municipality based on its proportion of the population and employment growth forecast in the Metro Vancouver Regional Growth Strategy. Consistent with the 2013 Base Plan, $1.55 million is allocated annually for the BICCS (Bicycle Infrastructure Capital Cost Sharing) Regional Needs Program. No funding for MRN upgrades is budgeted for In recognition of the need for upgrades on the MRN and bicycle network, TransLink has made it possible for municipalities to transfer capital funding from the Pavement Rehabilitation Fund to the MRNB Minor Capital Program. A municipality that transfers funding into the MRNB Minor Capital Program then enters into a cost sharing capital funding agreement with TransLink to complete the eligible upgrade project within four years. The rehabilitation funds are not replaced by TransLink, and municipalities continue to be responsible for appropriate pavement rehabilitation. FUNDING FOR TRANSLINK OWNED ROAD AND BICYCLE ASSETS TransLink owns and maintains a number of road based assets, including bridges and cycling infrastructure. Below is a description of these assets and planned investments related to those assets. TransLink Bridges TransLink owns and maintains five major bridges in the region: the Pattullo Bridge, the Golden Ears Bridge, the Knight Street Bridge, the Westham Island Bridge, and the Canada Line bike and pedestrian bridge. TransLink hires private sector companies to operate and maintain these bridges. This work includes minor repairs, sweeping, lighting and responding to traffic incidents. The 2014 budget for these service contracts is $1.8 million. Ongoing state of good repair investments include repairs to bridge decks, deteriorating concrete, drainage and railings. As each bridge ages, it will need repairs or replacement. i. PATTULLO BRIDGE Technical studies have revealed that many components of the 76 year old Pattullo Bridge are now reaching the end of their useful lives and the bridge is at risk of being undermined by river scour. In its current condition, the bridge is at risk in the event of a moderate earthquake or ship collision. The

20 Base Plan and Outlook Pattullo Bridge does not meet current roadway design guidelines (for a new bridge built today) for lane widths and curvature. Pattullo Bridge facilities for pedestrians and cyclists, such as sidewalks, barriers and connections, could be improved to provide greater protection from traffic. A strategic review process is underway to examine all practical rehabilitation or replacement alternatives (see below). TransLink manages the Pattullo Bridge to ensure safe operations, which includes conducting continuous short term repairs to various components of the bridge. In 2014 and 2015, $3 million in capital funding per year is allocated to Pattullo Bridge repairs, which are intended to address minor repairs to the bridge. To ensure that the bridge remains open until a long term solution is in place, TransLink is proceeding with the design work to mitigate the seismic risk and address the condition of the bridge deck (potentially through full deck replacement) in order to maintain the structural integrity of the bridge. Based on current cost estimates, a budget of up to $299 million is included in the Plan and Outlook periods for undertaking this potential seismic work and deck replacement. This figure is an increase from the $150 million that was included in the 2013 Base Plan, reflecting updated information about the condition of the bridge, and is subject to further refinement at the conclusion of the design work. During 2014, $22 million is budgeted for engineering design to provide better definition of the measures required, the costs, and the options for proceeding. The scope of the work required to maintain the Pattullo Bridge will be informed by the design work in 2014 and the outcome of the Strategic Review. The assumptions in this plan are based on the information available today and will be updated if and when new information is available. Strategic Review Process Together with its partners the City of New Westminster, the City of Surrey and the Ministry of Transportation and Infrastructure, TransLink will continue the Pattullo Bridge Strategic Review to examine all practical rehabilitation or replacement alternatives. Adjacent municipalities (Burnaby, Coquitlam and Richmond) have also been involved to the extent that some alternatives under consideration affect them. In 2013, the partners screened 25 alternatives, identifying six that warrant further evaluation. These findings were the subject of extensive consultation in June Additional technical and financial analysis, supported by public consultation, will continue through the remainder of 2013 and early 2014 to identify two or three preferred alternatives, from which a final solution is expected to be selected in early 2014 in conjunction with the development of the Regional Transportation Strategy. ii. GOLDEN EARS BRIDGE TransLink s investment in the Golden Ears Bridge (and its associated road network) is managed through a contract with the Golden Crossing General Partnership (GCGP). This contract covers capital payments, operations, maintenance and rehabilitation for the bridge until The contract payments to GCGP are budgeted for $66.5 million in A separate contract for the toll system operations is budgeted at approximately $6.1 million in 2014.

21 2014 Base Plan and Outlook 17 TRANSLINK S BICYCLE INFRASTRUCTURE TransLink owns and operates three major bicycle infrastructure assets: the BC Parkway, bicycle storage structures and the Canada Line bike and pedestrian bridge. BC Parkway TransLink is responsible for the BC Parkway, which runs parallel to or under the Expo SkyTrain Line. TransLink has budgeted $650,000 for repairs along this important cycling and pedestrian facility in 2014, and will continue to work with other stakeholders in the corridor to identify and implement further improvements. Bicycle Storage Infrastructure TransLink owns and contracts the operations and maintenance of over 400 bike lockers located at park and ride lots, transit exchanges and SkyTrain or Canada Line stations. Many of the lockers are now past their useful lives, and the inventory is shrinking as lockers are disposed of. To continue to meet the need for secure bike parking, TransLink uses a small amount of the budget to repair bike lockers and move inventory to new locations. In addition, TransLink is introducing secure bike parking structures, which are stand alone modular buildings where cyclists can enter and lock their bicycles, for which $350,000 is budgeted in The advantages of a secure bike parking structure include a higher capacity for parking bikes in a small area, good security measures to discourage theft, good visibility of the bike parking availability and more flexible terms for customers to park. OTHER PLANNED ROAD INVESTMENTS TransLink is actively engaged with partners to deliver several major goods movement projects now underway in the region. In 2014, TransLink will contribute $18 million (toward the project cost of $50 million) to the Roberts Bank Rail Corridor project. This is a multi partner initiative to reduce road/rail crossings between Delta and Langley, improving safety and facilitating the movement of goods. It will also include a new Rail Crossing Information System (RCIS) to help drivers choose appropriate routes. The project is within budget, and completion is scheduled in TransLink has contributed $3.7 million and $5 million respectively to the Powell Street Overpass Project in Vancouver and the Low Level Road Project in North Vancouver. Both of these projects are intended to improve the reliability and safety of goods movement and will be under construction in In partnership with Transport Canada and the Province, TransLink introduced the Real Time Traffic Map on the Provincial DriveBC website and on TransLink s website in The map allows drivers to monitor travel conditions on the region s major roads so that they can choose the best route. The Regional Traffic Management Centre (RTMC), which will help manage and coordinate traffic conditions in the region, received a $1 million contribution from TransLink. It will be fully functional in TransLink will continue its involvement with the Applied Freight Research Initiative, a program of studies sponsored by TransLink, Transport Canada, and the Ministry of Transportation and Infrastructure.

22 Base Plan and Outlook TransLink will also continue to support research into technology methods to reduce unnecessary truck trips by making more information about container locations available online. Summary of Capital Expenditures This section summarizes all planned capital expenditures over the Plan and Outlook periods, including those expenditures mentioned in previous sections of this plan. TransLink plans to invest $2.61 billion in capital over the Plan and Outlook period, of which $1.44 billion will be invested between 2014 and 2016 to address corporate priorities, including maintaining existing services and a state of good repair and, based on previously approved projects, undertaking upgrades or expansion. Table 6: 2014 to 2016 Capital Cash Flow (thousands) Net Capital Cash Flow Less Net CF Gross CF Funding Cash Flow SUMMARY Equipment 27,637 (1) 27,637 Facilities 120,542 (75,792) 44,750 Infrastructure 339,222 (191,543) 147,680 Major Construction Projects 477, ,141 Technology Applications 54,877 54,877 Vehicle Convention Revenue 299,856 (276,490) 23,365 Vehicle Other Revenue 8,595 (3,387) 5,208 Subtotal 1,327,870 (547,213) 780,658 Capital infrastructure contributions 111, ,672 Total 1,439,542 (547,213) 892,329 In the outlook period, TransLink will invest an average of $150 million per year, of which about 37 per cent will be funded through government contributions. MAJOR CAPITAL PROJECTS In accordance with Section 194 of the SCBCTA Act, all capital projects exceeding $50 million planned for the Plan and Outlook period are shown in Table 7.

23 2014 Base Plan and Outlook 19 Table 7: Major Capital Projects in the 2014 Base Plan (thousands) Plan Cash Flow Capital Cost Beginning in Year Planned Year of Completion Evergreen Line Contribution (excludes contributions already made) EXPO Line Propulsion Power System Upgrades Hamilton Transit Centre Design & Construction Compass Card & Fare Gate Project Phase 3 89, ,603 10, , , , ,846 34, , , , Pattullo Bridge Seismic upgrade 24,466 78,000 77,000 $299, Conventional Replacement Buses 0 55,487 2,513 58, Conventional Bus Replacement (75 40CNG & 10 40D & 26 60H) 2017 Conventional Bus Replacement (54 40G and 52 60H) 0 8,630 77,670 86, , , Unfunded Needs The 2012 Moving Forward Plan included several priority investments that could not be funded last year and are not included in the 2014 Base Plan. They include: Increased bus service hours to reduce overcrowding, accommodate population growth, and meet U Pass demand Extending 15 minute SeaBus service to seven days a week, year round Upgrading Lonsdale Quay bus terminal and SeaBus terminal passenger amenities Station area improvements Increased funding for Major Road Network and cycling upgrades In addition, TransLink has identified the following as population growth related priority items: Additional SkyTrain cars to meet demand Increased West Coast Express capacity Improved capacity and reliability of the Broadway 99 B Line These remain priority items that will be considered for funding should TransLink s revenue picture change within the Base Plan and Outlook period.

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25 2014 Base Plan and Outlook MANAGE THE SYSTEM Manage the transportation system to be more efficient and user focused is the second of three core strategies in the RTS Strategic Framework. This section outlines the programs and services TransLink has or will implement over the 2014 Base Plan and Outlook periods to ensure assets and resources are being used in the most efficient manner. Key elements of managing the system include: Making travel safe and secure for all users Making travel easy and attractive for all users Optimizing roads and transit for efficiency, safety and reliability Using integrated mobility pricing for fairness, efficiency and revenue Managing parking for fairness, efficiency and revenue Under this Plan, TransLink will continue to optimize bus service, price our Park and Ride lots for efficiency and effectiveness, provide our customers with information to enable them to make informed decisions, implement the Compass Card program and fare gates, and use Transit Police to protect people, property and revenue. Transit Services MAKING THE BUS SYSTEM MORE EFFECTIVE Service Optimization is TransLink s ongoing program to improve the productivity of the transit system by reallocating resources from low productivity uses to routes and times where demand is higher. Since 2010, service optimization has played an important role in increasing the productivity of TransLink s existing bus network. To date, more than 276,000 hours, or 5.6 per cent of total bus service hours in the region have been reallocated. The 2013 Base Plan committed to reinvesting 25,000 service hours each year by reallocating revenue hours from low productivity services and time periods to those with higher demand. The program follows principles established in 2010 to maintain the integrity of the network and guide reinvestments. To inform this program, TransLink conducts an annual review of system performance. This review examines trends in bus service ridership at a system wide, sub regional and route by route basis. The results of this review demonstrate that optimizing service across the region has allowed TransLink to serve more people without increasing resources. The 2012 Bus Service Performance Review 1 shows a trend of increasing productivity and cost effectiveness. In 2012, bus boardings per revenue hour increased by 3.4 per cent while cost per boarded passenger decreased by 2.2 per cent, as compared with performance in This report is available online at

26 Base Plan and Outlook In 2012 and 2013, TransLink reallocated approximately 102,000 annual service hours of bus service from lower performing services to areas of higher performance. After public consultation, projects were advanced, revised or deferred based on input received. Proposed service change concepts for 2014 are in the preliminary planning stages and will be advanced for public consultation in the fall of MAKING THE BUS SYSTEM MORE EFFICIENT TransLink, in partnership with its operating subsidiaries, is committed to ensuring the bus system operates as efficiently as possible. Coast Mountain Bus Company (CMBC) continually seeks efficiencies in bus scheduling and operations. Over the 2014 Base Plan period, CMBC will pursue the following initiatives: Recovery times: Recovery time is included at the end of each trip so that a bus can make the next trip on schedule. CMBC is using bus trip data to reduce recovery and other non revenue time, while maintaining reliable service and without compromising safety. In 2012, CMBC removed 48,000 non service hours from the conventional bus system, reducing recovery time to 17.1 per cent of total service hours from 18.2 per cent. The 2014 Base Plan sets a target of further reductions to 16 per cent of total service hours in 2016 and to just over 15 per cent by the end of the outlook period. Reducing the pay to platform ratio: A key statistic to assess the efficiency of the operators shifts is the pay to platform ratio. This statistic divides pay hours (the number of hours that a bus operator is paid for) by platform hours (the number of hours a bus is on the road). This ratio is improved by reducing non operating driver allowances and premiums such as travel time, make up and overtime. As of September 2013, CMBC has reduced the rate to , bringing the total reduction since 2011 to 1.25 per cent per cent and saving $1.5 million dollars each year. Rightsizing the vehicle: TransLink and CMBC work to analyze passenger demand and make adjustments to ensure that each transit route is served by a bus of appropriate size and capacity for customer demand. To take advantage of a lower cost per hour of service, the plan will increase the share of low demand service provided with minibuses. Rightsizing the fleet: CMBC and contracted transit services continue to review and revise the size of the vehicle fleet and spare ratios to balance service reliability with vehicle investment and support costs. By retiring and not replacing vehicles, CMBC has reduced the size of the conventional bus, HandyDART and non revenue support vehicle fleets in 2012 and Depot administration: In September 2013, CMBC increased efficiency by centralizing dispatch and operations administration, reducing the number of operating depots from six to one. This centralization streamlined processes and removed duplication of tasks, saving $1.4 million in annual operating expenses.

27 2014 Base Plan and Outlook 23 DEPOTS In accordance with our regional bus facility plan, TransLink began construction of the Hamilton Transit Centre in Richmond in 2013; the centre is expected to be operational by This modern facility will allow efficient maintenance and dispatching and have capacity for future service growth. TransLink will close the outdated North Vancouver Transit Centre in 2015 and service will be redistributed to the remaining transit centres. AREA TRANSIT PLANS Area Transit Plans identify future transit networks and priorities for improving local transit service in each of seven sub areas within the Metro Vancouver region. Each plan includes a long range (approximately 30 year) transit network vision, established in coordination with local growth patterns and land use plans. It also includes identified shorter range transit network priorities for consideration in subsequent base or supplemental plans or ongoing network management efforts. The Northeast Sector Area Transit Plan will be completed in 2014, to be followed by a plan for the Richmond area. COMPASS CARD AND FARE GATES In 2013, TransLink will introduce an automated fare collection system, called Compass, across all transit modes. This project is a key initiative to increase customer convenience, improve the efficiency and effectiveness of collecting fare revenue, improve transit service quality through data analysis, reduce fare evasion and increase revenue, and improve safety and security on the transit system. The Provincial and Federal governments are providing a financial contribution to this project. As a result of the introduction of Compass, TransLink has made changes to our fare products. Phased implementation of the Compass card program began in fall 2013 with a Beta Test period. Results from the Beta Test may also result in further tariff changes, which will be reflected in our transit tariff. AirCare The AirCare program, administered by TransLink since 1999, is considered to be one of the most effective vehicle emissions testing programs in North America. Since its implementation in 1992, AirCare has tested 2,754,298 vehicles, with 964,901 failing an emissions inspection at least once. By requiring these defective vehicles to be repaired, AirCare has significantly improved air quality in this region. The Province announced it will end AirCare testing for light duty vehicles on December 31, 2014, shifting the government s focus to controlling diesel particulate matter, which is generated mostly by heavy duty diesel trucks. The program will continue normal operations until the end of 2014, performing about 450,000 inspections.

28 Base Plan and Outlook Multi Modal Programs MOBILITY PRICING As outlined in the adopted RTS Strategic Framework, TransLink will work with partners to undertake a near term study to understand the impacts and implementation requirements of applying mobility pricing to the transit and road systems. This major regional study will increase the awareness and understanding of options for how to align the price of transportation more closely with how the system is used. TransLink will start engaging with stakeholders to scope and design the study, with the main part of the study taking place in 2014 and PARK AND RIDE TransLink adopted a comprehensive Park and Ride Policy in 2012 to guide the strategic decisions concerning park and ride facilities in the region. Park and ride facilities serve an important role in the regional transportation system because they provide access to the transit network to customers with low transit accessibility where they live. The policy addresses inconsistencies in facility amenities, pricing, management and access priority across the park and ride facilities that are under our control. The pricing of park and ride facilities is consistent with TransLink s broader mobility pricing strategy, as established in the RTS Strategic Framework. The price levels will be set to meet a number of key objectives, including: equity (all transportation users are paying for the infrastructure they use); cost recovery (both land and operational costs); efficiency; recognizing future land development potential; and leveraging the best use of assets and major TransLink projects. Charging for park and ride use provides some customer service benefits as well: customers can be more certain of finding a parking space at busy facilities, and TransLink will be able to provide more consistent facility amenities. Since the adoption of the policy, fees were introduced at the new Carvolth Exchange park and ride facility in September Further work is underway to use variable pricing at all parking facilities under TransLink control. For the purposes of this plan, increases in revenue are assumed starting in CUSTOMER SERVICE E Communication Customer information is core to TransLink s business. People who are well informed about options and current conditions will be able to make more efficient and timely travel choices. TransLink has engaged in a number of electronic communication initiatives, including: Implementation of the real time Next Bus travel information system for buses, mobile devices and desktop applications Implementation of the Regional Traffic Data System (RTDS) to provide real time road speed and travel time information Social media applications that integrate with the TransLink website Integration of transit data with Google Maps

29 2014 Base Plan and Outlook 25 Improved navigation and search features for the TransLink website A new online customer information tool for Compass (AskCompass) Under the 2014 Base Plan, TransLink will continue to improve our communications tools and look for new opportunities where appropriate. In addition, TransLink will continue to measure and report annually on effectiveness in all of our operations, as part of the statutory reporting requirements. Wayfinding Wayfinding refers to the various types of information that customers rely on to plan, confirm and complete a journey. TransLink developed a wayfinding strategy that lays the groundwork for an integrated system of information across modes. Consistent with past plans, TransLink will continue to upgrade wayfinding at new or renovated facilities, and wayfinding improvements will be implemented with the Evergreen Line rapid transit project. TRAVELSMART TravelSmart is a suite of Transportation Demand Management (TDM) programs that use information, outreach and online tools to promote changes in travel behaviour by increasing awareness of travel options and trip reduction initiatives. Under the 2014 Base Plan, TransLink will continue to provide a wide range of programs under the TravelSmart brand, supported by partnerships with employers, municipalities, schools and other public and private agencies. The Travelsmart.ca website will continue to be a hub for program support, information and tools to help Metro Vancouverites make more sustainable travel choices. The programs include: Support for carpool and vanpool programs Active transportation sponsorship and promotion TravelSmart Schools program Targeted outreach to new Canadians and seniors Other programs such as Corporate Car Share, Telework, Guaranteed Ride Home program and help with implementing workplace travel programs TransLink Corporate and Transit Police Under the 2014 Base Plan, the combined expenditures for TransLink Corporate and Transit Police total $118.6 million in 2014, a decline of $3.4 million from 2013, and are forecast to further decline to $113 million in 2016.

30 Base Plan and Outlook Table 8: TransLink Corporate and Transit Police Expenditures (millions) Actual Budget Forecasts Outlook TransLink Corporate $ 55.3 $ 56.3 $ 58.6 $ 61.4 $ 62.2 $ 67.8 SmartCards and Gating and Studies $ 9.1 $ 34.6 $ 28.0 $ 16.4 $ 17.3 $ 20.7 Subtotal TransLink $ 64.5 $ 90.9 $ 86.6 $ 77.8 $ 79.5 $ 88.4 Transit Police $ 28.2 $ 31.1 $ 32.0 $ 33.1 $ 33.5 $ 36.6 Total TransLink and Police $ 92.7 $ $ $ $ $ TRANSLINK CORPORATE EXPENDITURES During 2013, TransLink continued to streamline corporate processes and seek out efficiencies. As of July 2013, payroll, financial systems support, administrative services, human resources, BCRTC technology services, and procurement and purchasing were centralized at TransLink. In 2014, TransLink started allocating the cost of shared services to its subsidiaries. In 2014, TransLink will incur the following one time costs: Compass start up costs of $11 million, which were deferred from 2013 Pattullo Bridge Strategic Review, costing $900,000 Feasibility studies for roads, costing $1.5 million The cost to operate Compass is estimated at $19.8 million per year for the remainder of the Plan, of which approximately $12 million per year is contract payments to Cubic, the Compass card and fare gate contractor. The remaining $7.8 million of ongoing operating costs are included in TransLink corporate costs. TRANSIT POLICE The Transit Police force has a vital role in ensuring safety and security on public transportation in the Metro Vancouver area. This dedicated policing presence remains an effective and flexible way to reduce crime and disorder, ensure high levels of police presence on the region s transportation network and increase perceived safety. The Transit Police focuses on protecting people, property and revenue. Addressing crime and fear of crime on public transit directly affects TransLink s financial sustainability, as the perception of violence and fear of crime reduces ridership and revenues. The Transit Police will continue to focus on reducing crimes against people (both riders and transit personnel), such as assaults and robberies, and on controlling disorder, such as aggressive panhandling, vandalism, graffiti, unauthorized vending, and people avoiding payment of fare or flagrantly violating rules. While disorder offences may seem minor, these quality of life violations result in rider discomfort, and the discomfort fuels perceptions of fear. Transit Police is committed to zero growth in the number of police officers it employs in the coming years. In 2012, Transit Police reduced overtime costs by 32 per cent and reduced the cost per police officer to one of the lowest rates among independent police agencies in Metro Vancouver 2. 2 Ministry of Justice Police Resources in British Columbia, 2011 (dated January 2013). Available online at:

31 2014 Base Plan and Outlook 27 With the launch of Compass Card, Transit Police will assess opportunities to increase police presence on the regional transportation network. The organization will increase productivity and identify new models of deployment to manage the increase in service area expected with the development of the Evergreen Line. Efficiencies Independent audits in 2012 confirmed that TransLink is an efficient organization that provides the transportation services, programs and infrastructure that residents in this region depend on. Last year we faced some significant financial challenges. In the 2013 Base Plan, TransLink committed to a number of initiatives to reduce costs and boost revenues through efficiencies. These included finding scheduling and maintenance efficiencies, using the appropriate vehicle on each service route, and optimizing transit services to serve more riders across the region. Table 9 provides an overview of the efficiencies identified in the 2013 Base Plan and what is assumed in this plan. Table 9: Efficiency Measures in the 2013 Base Plan and 2014 Base Plan* (millions) 2013 Base Plan (annual average for Plan Period, ) COST SAVING EFFICIENCIES 2014 Base Plan (annual average for Plan Period, ) Scheduling Efficiencies $5.4 $3.9 Rightsizing the Transit Fleet $3.1 $1.3 Maintenance and Operations Efficiencies $8.8 $13.7 Reduced SkyTrain Frequency on Weekends $0.5 $0.5 Subtotal $17.8 $19.4 REVENUE INCREASING EFFICIENCIES Additional Optimization of Bus Services $3.2 $6.2 Leveraging Real Estate Assets $18.3 $13.3 Park and Ride Pricing $2.2 $0.9 Subtotal $23.7 $20.4 Total Cost Saving and Revenue Increasing Efficiencies * As compared to the cost predicted in the 2012 Moving Forward Plan. $41.5 $39.8 COST SAVING EFFICIENCIES We are on track to exceed our overall target for cost saving efficiencies, largely because of further efficiencies committed to within Coast Mountain Bus Company s maintenance and operations. REVENUE INCREASING EFFICIENCIES We identified some risks associated with the efficiency measures assumed in last year s plans, and the revenue increasing efficiencies are proving harder to achieve. Some of these risks have materialized, resulting in delays in our ability to leverage real estate assets and challenges with implementing pricing across all of our park and ride facilities.

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33 2014 Base Plan and Outlook PARTNER TO MAKE IT HAPPEN Partner to make it happen is the third of three core strategies in the RTS Strategic Framework. To make our plans a reality, we have to work together with all levels of governments, businesses, residents and customers to increase the level of certainty around timing and scale of investments, land use changes and policy measures. Transportation is not an end in itself, but a means of getting where we want to go and a vital component of our economy. The sections below outline how TransLink will work with municipalities to ensure transportation decisions support land use decisions, ensure that goods move efficiently through the region, ensure we leverage our real estate assets, and partner with senior levels of government to invest in the transportation network. Getting Land Use Right As outlined in Metro Vancouver s Regional Growth Strategy (RGS), it is important to create a compact urban area and to get jobs, housing and major trip generators in the right locations to facilitate shorter trips and more trips by walking, cycling and transit. This is principally a matter for municipalities, who are responsible for local land use planning that is consistent with the RGS. The Regional Transportation Strategy sets a target of 50 per cent of trips to be made by walking, cycling and transit by Investment in transportation services and infrastructure alone are not enough to achieve this goal. The region also needs land use policies that focus new development in areas where infrastructure for transit, bicycling and walking is already strong and that encourage community design to support future transit investment. When land use policies support higher density, mixed use walkable communities, the region can invest in services where they will be most effective and achieve better transportation performance. The Regional Transportation Strategy, the Regional Growth Strategy and municipal Official Community Plans all call for the integration of land use and transportation planning. To achieve these goals, TransLink partners with municipalities, Metro Vancouver and other regional agencies to craft strong land use policies and plans that will support a sustainable transportation network for the future. TransLink participates in a variety of ways, including creating or supporting land use and design guidelines, and working with and providing guidance to partner agencies and municipalities on Official Community Plans, Regional Context Statements, major development proposals, transportation plans and other plan efforts. The Goods Movement Strategy As part of the Regional Transportation Strategy, TransLink has started to develop Metro Vancouver s first Goods Movement Strategy. Goods movement in Metro Vancouver is complex, involving flows of freight and services associated with the region s function as a gateway as well as serving local needs. Numerous private entities and public agencies have an interest in the goods movement sector. TransLink s statutory mandate includes providing for the efficient movement of goods through the

34 Base Plan and Outlook region. In this role, TransLink has undertaken various coordination and research activities in partnership with municipalities, senior government and stakeholders. However, TransLink presently has limited authority to provide regional level planning, management and leadership for the goods movement system. The draft Goods Movement Strategy policy framework identifies potential ways for TransLink to foster greater regional collaboration and consistency with respect to goods movement policies, regulations and strategies. We expect to publish the draft Goods Movement Strategy in the fall of 2013 for consultation on policies and potential goods movement strategies. These will include investment, management and partnership activities. In 2014, TransLink will work with partners to develop a goods movement implementation plan to advance specific strategies for the goods movement sector. Real Estate Program The Real Estate Program manages leases, property rights, facilities and land to optimize its footprint and reduce real estate liabilities. TransLink Real Estate works with internal and external stakeholders to secure and invest in future real estate requirements in advance of transportation infrastructure projects and system growth. Acquiring the necessary real estate early allows TransLink to earn income on these assets and reduces the future capital cost. When property assets are no longer needed, TransLink will seek to maximize the sale value of those assets. The Real Estate Program aims to pursue partnerships on projects that will provide integration with transportation infrastructure and promote transit oriented development. Through the Adjacent and Integrated Development (AID) review process, TransLink works with the development community to mitigate the impact of development proposed for land near TransLink facilities and improve integration of transportation and land use activities. Between 1996 and 2011, there were only a handful of AID projects. However, due to the real estate market placing increased importance on proximity to transit, as well as the anticipated opening of the Evergreen Line in 2016, there are now 33 AID projects that are active or known to be starting soon. Pass Programs TransLink partners with the Province to deliver a number of pass programs, including the U Pass and the BC Bus Pass. The U Pass BC Program is provided in partnership with the Province and participating post secondary institutions and student societies. The purpose of the U Pass is to encourage students to use transit while at university and college to establish lifelong travel behaviours. The U Pass BC Program is funded by monthly pass fees charged to eligible students and contributions from the Province. TransLink will accommodate the demand generated by the program within the existing envelope of service hours. The BC Bus Pass offers a reduced cost annual bus pass for low income seniors and individuals receiving disability assistance from the Province of British Columbia. Passes are valid in communities serviced by BC Transit or TransLink. The pass is only valid for the eligible rider and is non transferable. HandyDART is not included in this program.

35 2014 Base Plan and Outlook FUNDING THE PLAN: REVENUE SOURCES As outlined in this section, TransLink will have sufficient revenues to maintain the services and programs committed to in the 2013 Base Plan, but we will not be able to invest in additional services or programs to meet the demands of our growing region. The SCBCTA Act defines the revenue sources that can be used in the annual Base Plans. Within that legislative framework, the 2014 Base Plan uses only established funding sources (as defined in the SCBCTA Act) to fund TransLink operations. Revenue projections are based on the following assumptions for 2014 to 2016: Transit fares: allowable base plan increases will resume in 2015 Fuel tax rate: maintained at $0.17 per litre (statutory maximum) Property tax revenues: will grow by 3 per cent per year Parking rights tax rate: maintained at 21 per cent (statutory maximum) Bridge toll rates: will increase at CPI index (assumed at 2 per cent per year) Replacement tax revenues: maintained at $18 million per year (statutory maximum) Hydro Levy: maintained at $1.90 per month per household account (fixed statutory amount) Under this plan, total annual revenues are expected to be $1,439.9 million in 2014, rising to $1,608.4 million in The Outlook period of the financial strategy (2017 to 2023) captures the financial obligations and implications of the investments in services and infrastructure that have been committed to as of December Table 10: Summary of Revenues (millions) Actual Budget Forecasts Outlook Transit Revenues $ $ $ $ $ $ Toll Revenues $ 38.9 $ 40.1 $ 39.6 $ 41.1 $ 42.6 $ 52.5 User Fees $ $ $ $ $ $ Motor Fuel Tax $ $ $ $ $ $ Property Tax $ $ $ $ $ $ Parking Rights Tax $ 53.2 $ 52.9 $ 56.0 $ 56.9 $ 57.7 $ 64.1 Other Taxes $ 37.2 $ 37.5 $ 37.7 $ 38.0 $ 38.4 $ 40.6 Taxation Revenues $ $ $ $ $ $ Senior Government Contributions $ 84.3 $ 85.6 $ 88.1 $ $ $ Canada Line Concessionaire credit $ 23.3 $ 23.1 $ 23.3 $ 23.3 $ 23.3 $ 23.3 Interest Revenue $ 31.7 $ 36.7 $ 34.2 $ 37.7 $ 43.9 $ 66.2 Gain on Disposal $ 41.6 $ 13.0 $ $ $ 40.0 $ Total Revenues $ 1,397.7 $ 1,421.2 $ 1,439.9 $ 1,509.6 $ 1,608.4 $ 1,836.1 * Concessionaire s Credit is the amortization of funding provided by the Concessionaire for the right to operate the Canada Line. User Fees While TransLink is committed to making the transportation system as affordable and accessible as possible, it is important for users to recognize that there is a cost associated with those services. User fees not only help TransLink pay for the services people use, but they also give people a clearer understanding of the true cost of their transportation choices. This section outlines the types of user fees TransLink currently employs.

36 Base Plan and Outlook TRANSIT REVENUES Transit revenues, consisting of both direct transit fare revenues, fare infraction revenues from the introduction of Bill 51, property rental, transit advertising and other revenues, are an important source of funding. Actual 2012 transit fare revenues were approximately $4 million more than budgeted in the 2013 Base Plan. Fare revenues in 2014 are expected to be less than forecasted in the 2013 Base Plan due to the delayed fare increase. Table 11: Transit Revenue Projections (millions) Actual Budget Forecasts Outlook Transit Fare Revenue $ $ $ $ $ $ Property Rentals, Advertising, Other $ 14.7 $ 14.6 $ 13.4 $ 15.0 $ 16.1 $ 18.6 Total: Transit Revenues $ $ $ $ $ $ TransLink s short term fares are regulated by the SCBCTA Act and by the Regional Transportation Commissioner. For short term fares (i.e. passes up to three days in duration, such as single rides and DayPasses), TransLink may set prices up to the targeted fare level within a base plan. The targeted fare for a revenue transit service is equal to the fare as of April 1, 2008, increased by 2 per cent per year. In order to exceed the targeted fare level, TransLink must include the short term fare in a supplemental plan, the plan must be approved by the Mayors Council, and the Commissioner must approve the fare. The prices for non short term fare products (e.g. monthly passes) are not subject to regulation. In 2013, TransLink will be introducing an automated fare collection system called Compass. As a result of the introduction of Compass, TransLink has made some significant changes to our fare products. A Beta Test in fall 2013 may also result in further tariff changes, which will be reflected in our transit tariff. As part of the Compass card implementation, TransLink will maintain current fare rates through to 2015, and will discontinue certain discount programs to make rates more equitable across the system. Once the Compass card has been fully implemented in 2015, TransLink plans to implement a fare increase. Under this Plan, TransLink will not be reapplying to the Commissioner for the fare increase that was turned down in A schedule of transit fares is presented on page 57. Transit fare revenue will continue to grow through the Plan Period as a result of increased ridership and the application of the 2 per cent annual allowable increases. Today, transit revenues account for 35 per cent of total revenues, and by the end of the outlook period this share is expected to increase to 39 per cent. This is largely due to the expected decline in the proportion of revenue from motor fuel tax. In quarter four 2013, TransLink intends to submit an application to the Regional Transportation Commissioner for approval to assess the YVR AddFare on DayPasses purchased on Sea Island and Compass Card Stored Value trips initiated on Sea Island. The rates in Table 28 do not reflect the YVR AddFare being assessed on these products. If the application is approved, TransLink will assess the YVR AddFare on these products and the additional annual revenue impact is estimated at $1.5 million.

37 2014 Base Plan and Outlook 33 TOLL REVENUES TransLink s only source of toll revenues at this time is from the Golden Ears Bridge. Toll revenues will continue to grow over the plan period, although at a slightly slower rate than previously expected, as demonstrated in Table 10. Revenue forecast have been revised to account for lower than expected demand in 2013, possibly due to the introductory toll rates on the new Port Mann Bridge. Travel volumes on the Golden Ears Bridge are expected to stabilize and to increase by 2.5 per cent in 2014 and at declining rates of growth thereafter. Toll revenues contribute to the cost of building and operating bridges but do not cover the full costs. In 2014, the cost of the contract payments to the Concessionaire and other operating and maintenance costs will exceed revenues by $47 million. As contract payments are scheduled to increase, the revenue gap will increase to approximately $53 million by Toll rates vary by vehicle type and type of account, as is shown Table 12. The toll rates are adjusted for changes in inflation annually on July 15, and are forecast to increase each year by a rate of inflation of 2 per cent. TransLink continues to work with the Transportation Investment Corporation on interoperability between the Golden Ears and Port Mann bridges. Customers who use the Port Mann Bridge s toll decal may be eligible for Transponder Registered toll rates when crossing the Golden Ears Bridge. In the near future, it may be possible for these customers to receive a single bill and manage their tolls for both Bridges through one tolling agency. Table 12: Golden Ears Bridge Toll Rates (July 2013 July 2014) Vehicle Classification Transponder Registered Video Registered Unregistered Car $3.00 $3.55 $4.25 Small Truck $6.00 $6.55 $7.15 Large Truck $8.95 $9.60 $10.15 Motorcycle n/a $1.50 $2.75 Taxation Sources Taxation is used as a revenue source to help spread the cost of providing a safe and efficient transportation system across as many beneficiaries as possible. Fuel taxes are used as a proxy for road user fees to help pay for the cost of maintaining and upgrading roads. Property taxes are used because all residents benefit from the transportation system, even if they don t drive or use transit; the efficient movement of people, goods and services is vital to our economy, our environment and our quality of life. MOTOR FUEL TAX REVENUES Under the SCBCTA Act, TransLink is allowed to collect a fuel tax of $0.17/L in the Metro Vancouver region. The forecast revenues over the Plan and Outlook periods are expected to grow slightly in 2014 to $337.8 million and then begin to decline to $334.7 million in 2016 and $328.5 million in 2023, as shown in Table 10.

38 Base Plan and Outlook Fuel tax is currently TransLink s second largest source of revenue, accounting for 24 per cent of total revenues in In 2011 and 2012, there was a sharp decline in fuel consumption in the Metro Vancouver region; the same trend occurred in other parts of North America, and this has caused TransLink to re evaluate its assumptions used to predict future fuel volume sales. The causes of the change in fuel consumption are believed to be reduced driving, increased use of fuel efficient vehicles, and cross border fuel purchases. Growth in diesel consumption has helped to dampen this decline in The forecasted fuel tax revenues for the Plan Period are estimated to be very close to what was forecast in the 2013 Base Plan (approximately 1 per cent higher than expected in the 2013 Base Plan), indicating that our near term forecasts are accurate. However, further downward revisions to long term gasoline volumes sales predictions forecast a decrease of $35 million relative to previous estimates for the outlying seven years. Fuel tax revenues thus continue to pose a revenue risk in the long term. TransLink will continue to monitor fuel consumption in the region, but the decline in this revenue source means that we need to find a new, more sustainable revenue source. PROPERTY TAX Property tax revenue will increase by 3 per cent per year, the maximum annual increase permitted under legislation for a base plan. Tax rates for all property classes necessary to generate the targeted revenue increase will be calculated to generate no more than the amount permitted by law and will be rebalanced for growth in the region and assessed values of homes. For example, if regional growth was 2 per cent, there would only be a 1 per cent increase in owner property taxes. Table 13: Property Tax Projections (millions) Actual Budget Forecasts Outlook Property Tax $ $ $ $ $ $ Time limited Property Tax $ $ $ $ $ $ The 2013 Supplemental Plan removed the time limited property tax increase (approximately $30 million per year in 2014 and 2015), and it is no longer included in TransLink s expected revenues. PARKING RIGHTS TAX REVENUE Under the 2014 Base Plan, parking rights tax revenue is forecast to be $56 million in 2014 and is expected to increase to $57.7 million by The tax rate is set at 21 per cent, the maximum permitted under the SCBCTA Act. The forecasts assume a 1.5 per cent increase on the price of paid parking, based on various, and in some cases offsetting, factors such as declining office vacancy rates, vehicle use, and increasing tourism, inflation and population. OTHER TAXES: REPLACEMENT TAX, HYDRO LEVY The Replacement Tax forecast remains at its legislated maximum of $18 million per year for the Base Plan and Outlook period. The tax will continue to be collected from all allowable property tax classes.

39 2014 Base Plan and Outlook 35 The Hydro Levy will be held at the statutory rate of $1.90 per month per residential account with no increases other than general population growth. Senior Government Contributions The Federal and Provincial governments contribute to TransLink s capital projects through the Strategic Priorities (Federal Gas Tax) Fund, Building Canada Fund and the Provincial Transit Plan. Restricted transfers from governments are deferred, and then recognized as revenue as the related stipulations in the agreement are met. A significant portion of funds received from the federal government programs requires TransLink to acquire specific transit assets with the funds, maintain the assets over a set holding period, and repay funds if the associated assets are sold before the end of the holding period. The revenue is recognized over the holding period of the asset rather than upon receiving the funds, which results in annual revenues as shown in Table 14 below. TransLink will recognize $88.1 million of revenues from senior government funding in 2014, increasing to $132.2 million in Table 14: Senior Government Contribution Forecasts for Capital and Operations (millions) Actual Budget Forecasts Outlook Capital $ 65.1 $ 66.3 $ 68.8 $ 92.5 $ $ Operations $ 19.3 $ 19.3 $ 19.3 $ 19.3 $ 19.3 $ 19.3 Total Contributions $ 84.4 $ 85.6 $ 88.1 $ $ $ STRATEGIC PRIORITIES FUND (FEDERAL GAS TAX) Under the terms of The Agreement on the Transfer of Federal Gas Tax Revenues under the New Deal for Cities and Communities , Metro Vancouver agreed to commit 100 per cent of the federal Gas Tax Fund revenues earmarked for the Greater Vancouver Strategic Priorities Fund (SPF) to TransLink and transit initiatives. This SPF agreement with Metro Vancouver expires March 31, 2014, concurrent with the overarching federal agreements. The Gas Tax Fund currently contributes roughly $122 million a year to transit projects across the region. Under current programs, senior government funding is applied to those projects meeting the funding program s criteria up to the allowable limit. The funds are restricted and cannot be used for TransLink s day to day business operations. To date, TransLink has received $676.9 million in gas tax funds, which has been used to improve the accessibility of the fleet, replace older buses with new fuel efficient vehicles and expand the transit fleet, including electric trolley, hybrid and CNG buses, a new SeaBus passenger ferry and 14 new SkyTrain cars. The Fund has also allowed us to make improvements to the Hamilton Transit Centre and SkyTrain Operations and Maintenance Centre and has supported the rehabilitation of TransLink s vehicle fleet. This has helped us expand service by 28.4 per cent from 2005 to 2012 and given our customers one of the newest, most accessible and environmentally friendly bus fleets in North America.

40 Base Plan and Outlook The cumulative budget for anticipated new gas tax eligible projects in the three year capital plan is $299 million, with $243 million in federal gas tax funding approved or planned to be proposed. These projects include several infrastructure improvements and replacements, but most are fleet replacement projects with the following anticipated vehicle volumes: Replacement of 289 conventional buses Replacement of 57 Community Shuttles Replacement of 129 HandyDART vehicles OTHER SENIOR GOVERNMENT FUNDING To date, TransLink has received $20.1 million in Building Canada funding (BCF) on $39.8 million in capital costs as of December 31, In 2013 and onwards, we expect to receive $198.4 million on $287.0 in capital expenditures on BCF projects for SkyTrain station upgrades, fare gates, and West Coast Express facility and fleet expansion. All BCF projects are scheduled to be complete or substantially complete by the end of TransLink receives an operating contribution of $19.3 million per year representing deferred provincial contributions for the Canada Line. The 2013 federal budget, Economic Action Plan 2013, introduced over $53 billion in infrastructure investments, including over $47 billion in the new 10 year Building Canada Plan that renews and expands existing programs starting in This new program includes a Community Improvement Fund (Gas Tax Fund and incremental GST rebate for municipalities), a new Building Canada Fund and the P3 Canada Fund as well as providing for funding through the end of current agreements. The implementation of the Building Canada Plan and its subsequent regional allocations through agreements such as a Strategic Priorities Fund require new agreements between all partners. Interest Income Interest is earned on sinking funds, capital contributions, debt reserve funds and cash balances. Most of the interest income is restricted and cannot be used to fund operations, with the exception of interest from cash balances. In previous years, interest income has been calculated on restricted cash, but as the interest earned on these restricted funds can only be applied to fund eligible capital projects and not toward general operations it has been excluded in the 2014 Base Plan. This change is a requirement of the recently adopted Public Sector Accounting standards. Interest revenue in the plan increases mainly due to the accumulation of further contributions to the sinking fund. The funds accumulated in this sinking fund go towards funding maturing debt issues, which happens in the later part of the Outlook period.

41 2014 Base Plan and Outlook ACHIEVING OUR GOALS Outcomes This section evaluates regional performance toward goals adopted in the 2013 Regional Transportation Strategy through the plan and outlook period. Only modest progress will occur toward most of these goals through 2015; progress will come mostly from vehicle efficiency improvements and the upcoming Evergreen Line. In spite of significant rapid transit network expansion, these gains will not be sustained through the outlook period, making the long term goals more difficult to accomplish. Land use changes are essential to meeting regional and provincial transportation targets. Without transit oriented land use and increased transit capacity and cycling infrastructure to support it, there will be little shift away from trips in personal vehicles and not much reduction in greenhouse gas emissions. Under this 2014 Base Plan, there will be little progress toward reduced reliance on personal vehicles, reduced traffic congestion, and efficient movement of people and goods. This limits our ability to do our part to fulfil the Regional Transportation Strategy s aspirations for a sustainable region. The following analysis uses quantitative methods when possible, supplemented by qualitative analysis. TransLink offers comment on the implications for 2023 if current resource levels are extrapolated into the future. Goal 1: Provide Sustainable Transportation Choices TransLink supports alternatives to single occupant vehicle trips by: Improving regional accessibility Reducing the need to own a car Reducing distances travelled by car Increasing walking, cycling and transit use Figure 7: Regional Weekday Mode Share from the 2011 Trip Diary 1 Limited progress toward this goal is expected under this plan, in part due to decreasing transit service levels per capita (2.58 hours per capita in 2013, declining to 2.33 in 2023), which will occur if expansion investments beyond those identified in this plan are not made in the intervening years. As a reference for these forecast impacts, Figure 7 shows the breakdown of regional weekday mode share as revealed in the 2011 Trip Diary. 3 The 2011 Trip Diary results show that transit mode share has increased substantially since 1999, from 10 per cent to 14 per cent and is expected to remain at this level through the plan and outlook periods. This is well below the Provincial Transit Plan s 2020 target of 17 per cent of weekday trips. 3 The Trip Diary is a household level survey TransLink carries out about every four to five years to understand travel behaviours in the region better. Participants are asked to provide details about all trips made within a 24 hour period, including mode, destination and trip purpose.