Toronto's downtown streetcar lines may survive mayor-elect Rob Ford's re-imagining of the city's transit strategy, despite campaign statements that he would scrap the traffic-slowing transit option and replace them with buses.

While speaking to the media on Wednesday, Ford said the future of Toronto's transit plan will be decided after he speaks with Ontario Premier Dalton McGuinty.

"We are going to work on the streetcars and talk to the premier. I have always said we have to talk to the premier and that is exactly what I am doing," Ford told reporters.

During the mayoral campaign he said he preferred putting money into subway lines, as opposed to developing light rail transit as set out in the Transit City plan. He had also said streetcar tracks slowed downtown traffic, weren't safe and should be phased out.

Ford's transit plan calls for the expansion of the subway system. It would extend the Sheppard East subway line to the Scarborough Town Centre, and extend the subway north from Kennedy station to the Scarborough Town Centre. He would also expand the Sheppard line westward to Downsview station.

Transit City would see a 120-kilometre network of light-rail transit built across the city. The province has given its approval for construction of the Eglinton LRT line, a 33-kilometre corridor that will stretch from Pearson International Airport in the west to Kennedy station in the east.

Light-rail transit costs about one-sixth of the per-kilometre amount required for subway construction. Construction has begun on the Sheppard LRT line.

"The premier is willing to talk to me. If we can get the subways built, that is fantastic," Ford added.

Some question whether a re-imagining of the city's transit strategy will receive the green light for provincial funding, especially given that some LRT construction has already begun.

Transit City will require the purchase of 204 streetcars from Bombardier at a cost of $1.25 billion. The city will pay two-thirds of the cost.

During an appearance on the John Oakley Show on AM640, Ford said if cancelling the deal "is going to cost taxpayers an arm and a leg, then obviously we can't do it."

Premier Dalton McGuinty said he would listen to Ford's proposal to alter the regional $17.5-billion transit plan -- if it had the support of the 44-member city council.

Transportation Minister Kathleen Wynne added: "We have worked collaboratively for seven years, and we will continue to do that."

The province is contributing $9 billion to the program, but announced in its 2010 budget that it was delaying expenditures on some parts of the project.

Another challenge for the new mayor will be negotiating a new contract with the Amalgamated Transit Union Local 113. The current deal expires March 31 -- in the middle of civic budget season.

Union president Bob Kinnear said this is a time for dialogue, not confrontation -- but he issued this warning: "We have proved in the past we are prepared to defend our members."

Ford had pledged to make the TTC an essential service. However, it will be up to the province to make that designation.

Other developments

On Wednesday, Ford also addressed the $1.2 million in severance packages the city is paying out for councillors who were defeated, or decided not to run, in this week's municipal election.

Ford told reporters that he was not happy about the severance packages, part of a bylaw passed in 1999, but there was nothing that could be done about it at this point.

Ford's focus on his second day of being mayor-elect remained on ending the vehicle registration tax, a $60 fee maligned by city car owners.

Earlier on Wednesday, Ford announced retiring councillor Case Ootes as the head of his transition team. Ootes will be tasked with preparing Ford's staff to take its role at City Hall.

"Case is a fantastic veteran of city politics," Ford said during an appearance on AM640, Wednesday morning. "I am very thankful he took on the role on my transition team."

Ootes was first elected as an East York councillor in 1988 and has represented Ward 29 (Toronto-Danforth) since 1997. He did not run in this month's election, leaving his seat open for eventual winner Mary Fragedakis.

"I am very proud to serve as Chair of the transition team for mayor-elect Rob Ford. His plans to bring more transparency and accountability to City Hall are issues that are important to me and to the taxpayers of Toronto," Ootes said in a statement.

With a report from CTV Toronto's Naomi Parness