Agenda

Summary from report (March 19, 2014) from Deputy City Manager, Cluster B

This report provides a further update on the review of Porter Airlines' request for an exemption to the commercial jet-powered aircraft ban at Billy Bishop Toronto City Airport (BBTCA) and two 200 metre extensions to the main east/west Runway 08/26. The request would require amending the 1983 Tripartite Agreement between the City of Toronto, Toronto Port Authority (TPA) and Government of Canada (represented by Transport Canada) that governs the operation of the airport.

Considerable effort has been made by staff and stakeholders to evaluate this proposal (studies, meetings, etc.).  Several key requirements are necessary to permit consideration of amendments to the Tripartite Agreement.  They include, but are not limited to, the following: an environmental assessment of the runway extensions; a detailed design for the runway with taxiway configurations; a method of construction for these facilities; and Transport Canada confirmation that the design and operating procedures of the airport will not materially alter the Marine Exclusion Zone (MEZ) and will fall within the Noise Exposure Forecast (NEF) 25 Contour.  In addition, the City must update and re-frame its Official Plan policies to guide the future form, scale and scope of the airport, as well as its relationship to other uses in the Central Waterfront.

In order to frame negotiations with the TPA and Transport Canada going forward, staff are recommending a specific list of requirements tied to a phasing framework with airport passenger volume and flight slot caps, that will be necessary for consideration of any amendments to the Tripartite Agreement. The contents of this report are meant to frame the discussion for Council to give clear direction in bringing this matter to a conclusion.  Accordingly, staff are seeking a mandate from Council on these specific requirements to avoid any ambiguity on what will be required in order to have Council decide on amendments to the Tripartite Agreement.

Staff are proposing a framework that will place limits (caps) on airport passenger volumes and the number of daily and hourly flight slots in order to address issues raised in the November 21, 2013 staff report. The caps are designed to link the airport's growth and passenger volumes to the capacity of groundside transportation and community infrastructure, and to ensure that the airport's operations are conducted in a way that best recognizes and respects its location in the Central Waterfront.

If passenger and flight caps are not implemented at BBTCA, under current restrictions and without the introduction of jets, passenger volumes could continue to increase from the current 2.3 million passengers per year (2 million local, referred to as origin/destination or "O/D", and 300,000 transfer) to approximately 3.8 million, without adequate measures to mitigate effects.  Slots could also be increased from the current voluntary cap of 202 per day to an unknown number, provided the increase complies with the NEF 25 Contour as required by the Tripartite Agreement.

If there is no commitment between the Tripartite Agreement signatories to pursue caps at the airport, there will be little sense in further consideration of airport expansion beyond the current terms of the Tripartite Agreement.

Staff have undertaken this review without regard for which airline(s) operate(s) at BBTCA. The decision on the future of the airport must be airline agnostic and should be based on the best interests of the airport and the City over the long term.

The proposed caps are based on forecasted passenger volumes and local road capacity. Increases to the cap levels are tied to improvements and investments in groundside infrastructure, and improved performance of other modes of transportation to BBTCA such as transit and shuttle bus.

The City requires confidence that the other signatories to the Tripartite Agreement will deliver on a commitment to co-develop a growth management framework for BBTCA with the City. In addition to caps at the airport, the City will require commitments from the TPA and Transport Canada to address issues such as noise management, traffic, flight paths, chemical/fuel management, community improvements, ongoing consultation, curfew hours, and other matters that have been identified as measures to improve conditions for the adjacent neighbourhood and waterfront community. These issues must be addressed prior to Council's consideration of any amendments to permit jet-powered aircraft and runway extensions at the airport.

The recommendations contained within this report outline a stepped process for entering into negotiations with the signatories to amend the Tripartite Agreement. The first step would be for Council to authorize staff to enter into negotiations. Once this is complete, the City would secure letters from the TPA and Transport Canada that confirm their willingness to negotiate the required Tripartite Agreement amendments. In the case of the TPA, the agency would also commit to satisfy the conditions precedent associated with Phase One of the framework.

The TPA, working collaboratively with the City and Transport Canada, would then deliver on the conditions precedent associated with Phase Two of the framework. This Phase includes a significant amount of work to be undertaken by the TPA in conjunction with Transport Canada. The TPA would complete a new Airport Master Plan, undertake an environmental assessment, prepare a detailed runway design that confirms the position of the MEZ and continued compliance with the NEF 25 Contour.

Together then, the City, TPA and Transport Canada would negotiate proposed changes to the Tripartite Agreement.  Staff would report back to Council on the results of the negotiations in a comprehensive report on the final framework for phasing with caps (and conditions precedent).  This framework would replace the current jet and runway extension bans.

Phase Three negotiations would be more complex and, consequently, would take some time to resolve. The parties would have to integrate future plans for BBTCA with those for the Canada Malting site and Western Waterfront LRT. Phase Three negotiations would benefit from the monitoring of Phase Two operations and will be informed by the experience of the jets in practice. The City would be looking to see demonstrated improvement to airport operations as it affects the community and the traffic and pedestrian circulation in the area. Phase Three would involve a further staff report to Council on proposed amendments to the Tripartite Agreement, including securing the necessary funding for groundside transportation and community infrastructure, and consideration of revising the 2033 timeframe to a date necessary to recover such costs.

There are significant studies that the TPA must complete such as the environmental assessment, detailed runway design and updated airport master plan before staff could recommend any amendments to the Tripartite Agreement. This work will take the rest of 2014 to complete. A report to Council would target 2015. Further, certification of the Bombardier CS-100 aircraft is not expected until 2015.

Table 1: Summary of Proposed Phased Framework for Managing Growth

Staff have discussed the phasing framework with the TPA and Porter Airlines but there is no agreement yet on the terms and conditions. As well, Transport Canada, the public and airport stakeholders have not had the opportunity to review the proposed phasing framework and conditions. Any advancement of this framework would require not only the agreement of the Tripartite Agreement signatories but also comprehensive public and stakeholder input. Robust public and stakeholder consultation consistent with the standard in the waterfront is essential.

In response to the November 2013 staff report, the TPA and Porter Airlines have, since December, engaged staff in a series of positive discussions related to transportation issues, operations and passenger volumes caps. These discussions resulted in the TPA's submissions to the City on January 24, 2014 (attached to the January 30, 2014 staff report) and February 27, 2014 (attached at Appendix 1). The TPA's investment into the temporary taxi staging facility on the Canada Malting site has resulted in improved traffic conditions on Eireann Quay. In addition, the TPA has directly engaged with the Toronto District School Board to address traffic and safety concerns, and has resolved the Payment in Lieu of Taxes (PILTs) issue for the BBTCA with the City.

Summary from previous report (November 21, 2013) from the

Deputy City Manager, Cluster B

The purpose of this report is to respond to City Council's direction to review a request from Porter Airlines to permit jet-powered aircraft, and to add extensions at both ends of the main runway at Billy Bishop Toronto City Airport (BBTCA). This report provides a summary of findings from staff and consultant reviews, and recommends a process for moving forward.

BBTCA has experienced significant growth following the launch of Porter Airlines in 2006, with annual passenger volumes rising from 26,000 in 2006 to 2.3 million in 2012.  BBTCA is now the ninth busiest airport in Canada, with a reputation for positive passenger experiences.  It provides connections to key regional business and leisure destinations such as Montreal, Ottawa, New York, Chicago, Boston and Washington. The close proximity of BBTCA to the downtown financial district is a significant asset to businesses operating in downtown Toronto, and the recent success and convenience of BBTCA has been an economic benefit to the City.

As part of the review, City staff retained specialized consultants in the following areas: aviation, coastal processes and water quality, economic impacts, health impacts including air quality and noise, land use and planning, polling and public consultation, and transportation impacts. Reports with status updates on the consultant findings were provided to Executive Committee on July 3 and September 24, 2013.

The consultant team was asked for additional information and review as a result of input from the public consultations, direction from Executive Committee, and in response to a revised request from Porter Airlines to extend the runways from 168 to 200 metres at each end.  As a result, a number of the final consultant studies have not been available until the release of this report, and so Porter Airlines, the Toronto Port Authority (TPA), and other interested stakeholders and members of the public have not had an opportunity to respond with their view of issues raised as well as how these issues can be mitigated.

The current review is premised on an expectation that:

1.         the proposed runway extensions would likely meet Transport Canada regulatory requirements, proceed through appropriate Environmental Assessment(s), and meet Council's stipulations respecting preservation of the Marine Exclusion Zone;

2.         the proposed jets, the Bombardier CS-100, would meet the noise restrictions contained in the Tripartite Agreement, and that this would be demonstrated by flight test data; and

3.         the proposal would provide a net improvement to the City, and be without adverse impacts as defined by the relevant Official Plan policy.

Despite the breadth of consultant studies, there remain outstanding questions. First, Transport Canada has not provided the City with confirmation of the feasibility and impacts of a runway extension.  Second, the available flight test data, as provided by Bombardier to the City's aviation consultants on November 4 and on November 26, 2013, is insufficient to confirm whether the proposed jet aircraft will meet the noise guidelines set out in the Tripartite Agreement.  Third, the TPA recently advised the City that an extension of the Tripartite Agreement would be necessary if Porter Airlines' request is approved. At present, the Tripartite Agreement expires in 2033 with no provision for renewal or extension, and additional information is needed to understand the implications for the City of its extension.  These outstanding questions undermine the agreed-upon premises for this review, and substantiate that approval of the expansion request is premature.

This review has also highlighted conflicts which exist between the nearby schools, community centre, parks and residential community and BBTCA. Mitigation measures to address traffic congestion, emissions, noise from aircraft and maintenance operations and groundside conflicts are necessary in order to provide better conditions in the neighbourhood surrounding the airport.

BBTCA is one of the few downtown area airports in the world, and its waterfront location presents a unique condition.  Review of the current request has led to a broader discussion of tools the City needs to more effectively assess current and future airport operations in the context of the central waterfront's revitalization.

Advances in jet technology have significantly improved the noise and emissions performance of such aircraft.  Staff suggest that, in assessing changes proposed at BBTCA, the key question is not the type of aircraft technology proposed, but the number of passengers, flights and required infrastructure which may arise as a result of new aircraft technology.  Neither the TPA nor the City has a framework to evaluate or manage these key growth factors at BBTCA.

While BBTCA is not required to have a master plan legislatively, master plans are a standard operating requirement that provide information to regulators, funding partners and the community on airport growth and business planning.  All other Canadian airports operate in accordance with an airport master plan.  The TPA should have one prepared for BBTCA in accordance with industry best practices, and in consultation with the City, Transport Canada, relevant stakeholders and members of the public.  Referencing the airport master plan, the City should follow with the necessary planning studies to assess how an expanded airport could fit within the context of a revitalized waterfront.  Staff should report back to Council on both of these processes and, if appropriate, make recommendations for updates to the Official Plan.

The public consultation undertaken as part of the current review has received significant interest and participation.  The airport master planning process and City planning studies will both include opportunities for continued public engagement respecting BBTCA.  If this report is adopted, additional next steps include review by the public and interested stakeholders of the consultants' studies prepared through the current review, completion of necessary environmental assessment(s) for any future proposed runway extensions, and completion of the local transportation study and implementation of Eireann Quay improvements.   Confirmation from Transport Canada of certification of the proposed jet aircraft as well as runway extension feasibility will be required, and further discussions respecting existing and future improvements to airport facilities both airside and groundside will continue.

This review has concluded that the expansion of an airport in a downtown area and on an active waterfront must consider, firstly, the fit of that airport within its surroundings.  Staff believe it is essential to understand the airport's existing and planned size, volume of passengers, number of flights, and its role within the Southern Ontario regional system of airports, in order to complete this evaluation.

The Deputy City Manager, Cluster B recommends that:

1.         City Council authorize the Deputy City Manager, Cluster B to negotiate with the Toronto Port Authority and Transport Canada the following phased framework for managing growth at Billy Bishop Toronto City Airport:

a.         Phase One:

i.          annual origin/destination passenger cap of 2.4 million;

ii.         peak hour flight (slot) cap of 16;

iii.        peak hour origin/destination passenger cap of 884; and

iv.        daily flight (slot) cap of 202.

b.         Phase Two:

i.          annual origin/destination passenger cap of 2.7 million;

ii.         peak hour flight (slot) cap of 20;

iii.        peak hour origin/destination passenger cap of 1,178; and

iv.        daily flight (slot) cap of 202.

c.         Phase Three: passenger and flight (slot) caps, based on transportation capacity, community impacts and experience with the Phases One and Two.

2.         City Council authorize the Deputy City Manager, Cluster B, to negotiate with the Toronto Port Authority and Transport Canada the conditions precedent of the phased framework for managing growth at Billy Bishop Toronto City Airport, that include but are not limited to:

a.         Phase One:

i.          commencement of an Airport Master Plan, runway extensions environmental assessment and runway extensions detailed design;

ii.         implementation of the following measures:

1.         implementation of passenger wayfinding and route planning tools for users of the airport;

2.         taxi operational adjustments to achieve increased passenger efficiency;

3.         enhancement of shuttle service to achieve an increased modal split and regular monitoring and reporting of shuttle usage to the City;

4.         implementation of traffic monitoring for Eireann Quay and reporting to the City;

5.         implementation of an airport noise monitoring system and reporting protocol;

6.         implementation of restrictions on ground-based airport noise;

7.         review of deicing and chemical management programs;

8.         implementation of air quality monitoring and reporting to the City;

9.         construction of aircraft run-up barrier or enclosure and alternate procedures for mitigating run-up noise in the interim;

iii.        a robust plan for public and stakeholder input into all planning exercises, including the Airport Master Plan and runway extensions environmental assessment;

iv.        participation in the Official Plan review and Bathurst Quay Precinct Plan study process (to be led by the City); and

v.         Toronto Port Authority and Transport Canada letters to confirm full participation in the above.

b.         Phase Two:

i.          amendments to the Tripartite Agreement to require annual Noise Exposure Forecast monitoring and reporting by Transport Canada to the City;

ii.         completion of a new Airport Master Plan by the Toronto Port Authority, aligned with the City's new Bathurst Quay Precinct Plan and Official Plan;

iii.        a revised set of Official Plan policies for the airport;

iv.        completion of an environmental assessment for the proposed runway extensions consistent with the letter dated February 27, 2014 from the Toronto Port Authority, with scope and components to be finalized to the City's satisfaction;

v.         a final Code 3 airport runway design, including all modifications to airside facilities, acceptable to Transport Canada, with no changes to the airport's Marine Exclusion Zones as currently configured, that would materially encroach on the Western Shipping Channel;

vi.        certification of the Bombardier CS-100 or similar aircraft for operation at Billy Bishop Toronto City Airport, and confirmation that such aircraft would meet the noise restrictions contained in the Tripartite Agreement, secured through provision of a remodelled Noise Exposure Forecast 25 Contour;

vii.       funding for groundside traffic and community infrastructure improvements, to the agreement of all parties and in keeping with the findings of the Billy Bishop Toronto City Airport review, Eireann Quay Strategic Transportation Study and Bathurst Quay Precinct Plan;

viii.      endowment of a community benefit fund for public realm improvements, housing noise reduction retrofits, and any other noise reduction opportunities;

ix.        construction management plans for the proposed runway extensions and related work, designed to mitigate community impact (especially overnight);

x.         mechanisms for airport operations monitoring and dispute resolution;

xi.        enhanced remedies for non-compliance; and

xii.       such other terms and conditions as deemed necessary by the Deputy City Manager, Cluster B, in consultation with the City Solicitor.

c.         Phase Three:

i.          funding for additional groundside traffic and community infrastructure improvements, to the agreement of all parties;

ii.         advancement of, and coordination with, appropriate public transit improvements, including the Western Waterfront Light Rail Transit;

iii.        coordination of transportation infrastructure to improve access and egress of airport passengers with plans for the Canada Malting site redevelopment; and

iv.        such other terms and conditions as deemed necessary by the Deputy City Manager, Cluster B, in consultation with the City Solicitor.

3.         City Council request the Toronto Port Authority to submit a letter confirming the agency's commitment to managing growth at Billy Bishop Toronto City Airport through caps and phasing. The Toronto Port Authority should confirm:

a.         its commitment to satisfy the conditions precedent for Phase One; and

b.         its willingness to negotiate required Tripartite Agreement amendments and any other agreements for Phase Two and Phase Three approvals.

4.         City Council request the Government of Canada (represented by the Minister of Transport) to submit a letter confirming the government's commitment to managing growth at Billy Bishop Toronto City Airport through caps and phasing, and their engagement in negotiating required Tripartite Agreement amendments for Phase Two and Phase Three approvals.

5.         City Council request the Deputy City Manager, Cluster B, to report back to the Executive Committee with the outcome of the negotiations including all recommended Tripartite Agreement amendments.

6.         City Council request the Deputy City Manager, Cluster B, to undertake further studies and consultations that may be necessary arising from this review.

7.         City Council request the Chief Planner to report back to Planning and Growth Management Committee and Council on alignment of the Airport Master Plan with the City's policies and objectives, the Official Plan and the Bathurst Quay Precinct Plan.

8.         That the Executive Committee receive for information all recommendations from the November 21, 2013 staff report on Billy Bishop Toronto City Airport.

This report provides a further update on the review of Porter Airlines' request for an exemption to the commercial jet-powered aircraft ban at Billy Bishop Toronto City Airport (BBTCA) and two 200 metre extensions to the main east/west Runway 08/26. The request would require amending the 1983 Tripartite Agreement between the City of Toronto, Toronto Port Authority (TPA) and Government of Canada (represented by Transport Canada) that governs the operation of the airport.

Considerable effort has been made by staff and stakeholders to evaluate this proposal (studies, meetings, etc.).  Several key requirements are necessary to permit consideration of amendments to the Tripartite Agreement.  They include, but are not limited to, the following: an environmental assessment of the runway extensions; a detailed design for the runway with taxiway configurations; a method of construction for these facilities; and Transport Canada confirmation that the design and operating procedures of the airport will not materially alter the Marine Exclusion Zone (MEZ) and will fall within the Noise Exposure Forecast (NEF) 25 Contour.  In addition, the City must update and re-frame its Official Plan policies to guide the future form, scale and scope of the airport, as well as its relationship to other uses in the Central Waterfront.

In order to frame negotiations with the TPA and Transport Canada going forward, staff are recommending a specific list of requirements tied to a phasing framework with airport passenger volume and flight slot caps, that will be necessary for consideration of any amendments to the Tripartite Agreement. The contents of this report are meant to frame the discussion for Council to give clear direction in bringing this matter to a conclusion.  Accordingly, staff are seeking a mandate from Council on these specific requirements to avoid any ambiguity on what will be required in order to have Council decide on amendments to the Tripartite Agreement.

Staff are proposing a framework that will place limits (caps) on airport passenger volumes and the number of daily and hourly flight slots in order to address issues raised in the November 21, 2013 staff report. The caps are designed to link the airport's growth and passenger volumes to the capacity of groundside transportation and community infrastructure, and to ensure that the airport's operations are conducted in a way that best recognizes and respects its location in the Central Waterfront.

If passenger and flight caps are not implemented at BBTCA, under current restrictions and without the introduction of jets, passenger volumes could continue to increase from the current 2.3 million passengers per year (2 million local, referred to as origin/destination or "O/D", and 300,000 transfer) to approximately 3.8 million, without adequate measures to mitigate effects.  Slots could also be increased from the current voluntary cap of 202 per day to an unknown number, provided the increase complies with the NEF 25 Contour as required by the Tripartite Agreement.

If there is no commitment between the Tripartite Agreement signatories to pursue caps at the airport, there will be little sense in further consideration of airport expansion beyond the current terms of the Tripartite Agreement.

Staff have undertaken this review without regard for which airline(s) operate(s) at BBTCA. The decision on the future of the airport must be airline agnostic and should be based on the best interests of the airport and the City over the long term.

The proposed caps are based on forecasted passenger volumes and local road capacity. Increases to the cap levels are tied to improvements and investments in groundside infrastructure, and improved performance of other modes of transportation to BBTCA such as transit and shuttle bus.

The City requires confidence that the other signatories to the Tripartite Agreement will deliver on a commitment to co-develop a growth management framework for BBTCA with the City. In addition to caps at the airport, the City will require commitments from the TPA and Transport Canada to address issues such as noise management, traffic, flight paths, chemical/fuel management, community improvements, ongoing consultation, curfew hours, and other matters that have been identified as measures to improve conditions for the adjacent neighbourhood and waterfront community. These issues must be addressed prior to Council's consideration of any amendments to permit jet-powered aircraft and runway extensions at the airport.

The recommendations contained within this report outline a stepped process for entering into negotiations with the signatories to amend the Tripartite Agreement. The first step would be for Council to authorize staff to enter into negotiations. Once this is complete, the City would secure letters from the TPA and Transport Canada that confirm their willingness to negotiate the required Tripartite Agreement amendments. In the case of the TPA, the agency would also commit to satisfy the conditions precedent associated with Phase One of the framework.

The TPA, working collaboratively with the City and Transport Canada, would then deliver on the conditions precedent associated with Phase Two of the framework. This Phase includes a significant amount of work to be undertaken by the TPA in conjunction with Transport Canada. The TPA would complete a new Airport Master Plan, undertake an environmental assessment, prepare a detailed runway design that confirms the position of the MEZ and continued compliance with the NEF 25 Contour.

Together then, the City, TPA and Transport Canada would negotiate proposed changes to the Tripartite Agreement.  Staff would report back to Council on the results of the negotiations in a comprehensive report on the final framework for phasing with caps (and conditions precedent).  This framework would replace the current jet and runway extension bans.

Phase Three negotiations would be more complex and, consequently, would take some time to resolve. The parties would have to integrate future plans for BBTCA with those for the Canada Malting site and Western Waterfront LRT. Phase Three negotiations would benefit from the monitoring of Phase Two operations and will be informed by the experience of the jets in practice. The City would be looking to see demonstrated improvement to airport operations as it affects the community and the traffic and pedestrian circulation in the area. Phase Three would involve a further staff report to Council on proposed amendments to the Tripartite Agreement, including securing the necessary funding for groundside transportation and community infrastructure, and consideration of revising the 2033 timeframe to a date necessary to recover such costs.

There are significant studies that the TPA must complete such as the environmental assessment, detailed runway design and updated airport master plan before staff could recommend any amendments to the Tripartite Agreement. This work will take the rest of 2014 to complete. A report to Council would target 2015. Further, certification of the Bombardier CS-100 aircraft is not expected until 2015.

Table 1: Summary of Proposed Phased Framework for Managing Growth

Staff have discussed the phasing framework with the TPA and Porter Airlines but there is no agreement yet on the terms and conditions. As well, Transport Canada, the public and airport stakeholders have not had the opportunity to review the proposed phasing framework and conditions. Any advancement of this framework would require not only the agreement of the Tripartite Agreement signatories but also comprehensive public and stakeholder input. Robust public and stakeholder consultation consistent with the standard in the waterfront is essential.

In response to the November 2013 staff report, the TPA and Porter Airlines have, since December, engaged staff in a series of positive discussions related to transportation issues, operations and passenger volumes caps. These discussions resulted in the TPA's submissions to the City on January 24, 2014 (attached to the January 30, 2014 staff report) and February 27, 2014 (attached at Appendix 1). The TPA's investment into the temporary taxi staging facility on the Canada Malting site has resulted in improved traffic conditions on Eireann Quay. In addition, the TPA has directly engaged with the Toronto District School Board to address traffic and safety concerns, and has resolved the Payment in Lieu of Taxes (PILTs) issue for the BBTCA with the City.