Translink revisits plan to sell off assets
Sale of Oakridge station could raise $ 220 million to fund operations and avoid service cuts
Translink is revisiting a plan to sell assets, such as the Oakridge transit station, to fund its operations, warning that while such a move is not sustainable long- term, it beats cutting much- needed transit services.
The move has surprised regional mayors — who warn it’s a “slippery slope” to take — but CEO Ian Jarvis said selling the centre and moving it to a new location could bring in $ 220 million. Without the sale, he said, the beleaguered transportation authority would have to rely on its surplus reserves, which would likely be depleted by 2014.
“[ This] is not a financial strategy in normal circumstances, but our circumstances are such that we find ourselves in a situation where we do that or cut services,” Jarvis said.
Translink had initially considered selling the 14- acre parcel and three other properties in 2008 to help finance the construction of the UBC and Evergreen rapid transit lines. At that time, Translink warned it was in a crisis situation.
But while the situation isn’t as dire now, Jarvis said, Translink is facing increasing financial pressures, including lower- than-predicted revenue from its fuel tax. The tax rose by two cents a litre last month, but Translink is expecting a $ 120- million drop in revenue as more people take transit or go south of the border to buy gas.
Translink will also lose $ 20 million per year in potential revenue from a proposed fare increase that was axed last month, while regional mayors refused to impose a temporary property tax next year to raise $ 30 million for transit improvements including a B- Line along Surrey’s King George Boulevard, rapid bus over the Port Mann Bridge and Seabus expansions.
Translink has also been challenged by its independent commissioner to find between $ 40 million and $ 60 million in efficiencies.
“There’s a lot of things coming at us,” Jarvis said. “We need to be financially prudent and responsible in our actions.”
Jarvis said he hopes to see the transit fare increase approved for 2014 and is assuming its 6,300 unionized employees will be willing to accept a wage freeze over the next three years.
The union representing bus drivers has started bargaining, while the contract for the Transit police is up for negotiation and the contract for Skytrain employees expires in August.
Don Macleod, spokesman for the union representing bus drivers, said he was surprised Jarvis would suggest a wage freeze while bargaining is ongoing. “I would suggest Translink let the process unfold at the bargaining table,” he said.
Meanwhile, the unions representing transit workers have started an advertising campaign to encourage riders to send a message to the B. C. government and regional mayors to restore funding.
The campaign comes as TransLink said it is trying to determine if it can re- prioritize capital and operating programs.
Translink’s existing plans already assume efficiency gains on the order of $ 84 million over the next three years, Jarvis said, which include “service optimizations,” such as reallocating bus routes to areas where there is higher usage and more density.
This has upset some mayors, such as those in the Tri- Cities or south of the Fraser, who fear this means they will see even less service in their areas.
“Coquitlam is going to great lengths to densify our neighbourhoods but we won’t have buses in the foreseeable future,” said Coquitlam Mayor Richard Stewart. “We’re going to end up with non- transit- oriented neighbourhoods that somebody will put buses in and no one will use them. We’re selling out the future in the suburbs to buy buses for urban centres.”
But Jarvis said there’s not much Translink can do. “These are the sort of trade- offs we’re going to need to make,” he said.
But some mayors argue there has to be some movement on finding long- term sustainable funding to pay for transit. The province hasn’t shown much support for the mayors’ proposals, such as a vehicle levy or regional carbon tax, instead suggesting an audit will turn up efficiencies at Translink.