Board Meeting - April 25, 2002

B. Ashton (Chair), M. Silva (Vice-Chair), B. Disero, D. Miller, H. Moscoe, G. Altobello, S. Shaw and J. Mihevc (Commissioners), R. Ducharme (Chief General Manager), G. Webster (General Manager – Operations), V. Rodo (General Manager - Executive & General Secretary), J. Sepulis (General Manager - Engineering & Construction), L. Hilborn (Deputy General Manager - Corporate), B. Leck (General Counsel), R. Hughes (Chief Marketing Officer), A. Chocorlan (Manager - Materials & Procurement), M. Roche (Chief Financial Officer), M. Stambler (Manager - Service Planning), S. Blakey (Manager - Human Resources), W. Buffett (Assistant General Secretary), F. Stanois (Coordinator - Secretariat Services) were present.

B. Ashton was in the Chair.

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1. Options for Addressing the Current 2002 Operating Budget Shortfall

R. Hughes, Chief Marketing Officer gave an overhead slide presentation entitled, "2002-2005 Financial Overview."

The Commission then heard deputations from the following individuals:

Councillor Joanne Flint

City of Toronto

Shelley Petrie

Toronto Environmental Alliance

Councillor David Shiner

City of Toronto

Andrew Schulz

Councillor Raymond Cho

City of Toronto

The Commission Received The Foregoing Deputations.

Commissioner Moscoe Moved That The Commission Meet In Camera To Discuss A Matter Of Solicitor Client Privilege Relating To The Budget Shortfall.

The Commission Approved Commissioner Moscoe's Motion.

The Commission adjourned the public meeting and met in camera at 2:15 p.m.

The Commission reconvened the public meeting at 2:25 p.m.

The Commission Then Took The Following Action:

Commissioner Disero Moved That Recommendation No. 3 Contained In The Report Be Deferred For A Period Of One Week To Permit The Chair And Staff To Meet With The City On The Following Items:

1. To Confirm A Date For The TTC To Report Back To The Budget Advisory Committee On Efficiency Measures That May Offset Operating Budget Pressures In 2002 And On To 2003.

2. As Part Of The Negotiations For A Long Term Funding Arrangement With All Levels Of Government, Set A Time Frame For TTC In Conjunction With The CAO And The CFO To Look For Ways To Under Go A Value For Money Audit Of Its Operations, With The Intent Of Identifying Possible Further Efficiencies And Savings, As Part Of The Initial Stage Of The 2003 Budget Process.

3. To Discuss The Issue Of The Contribution To Capital Account And Give Notice To The City That The TTC Will Be Short $17.6 Million On The 2002 Contribution To Capital, And May Not Be Able To Make A Contribution To Capital In Future Years.

Chair Ashton Called For A Vote On Part 1 Of Commissioner Disero's Motion.

Comissioner Disero And Commissioner Shaw Voted In Favour. Chair Ashton, Vice-Chair Silva, Commissioner Moscoe, Commissioner Miller, Commissioner Mihevc And Commissioner Altobello Were Opposed. Part 1 Of The Motion Therefore Lost On A 6 - 2 Vote.

Chair Ashton Called For A Vote On Part 2 Of Commissioner Disero's Motion.

Commissioner Disero And Commissioner Shaw Voted In Favour. Chair Ashton, Vice-Chair Silva, Commissioner Moscoe, Commissioner Miller, Commissioner Mihevc And Commissioner Altobello Were Opposed. Part 2 Of The Motion Therefore Lost On A 6 - 2 Vote.

Chair Ashton Called For A Vote On Part 3 Of Commissioner Disero's Motion.

The Commission Approved Part 3 Of Commissioner Disero's Motion On A Unanimous Vote.

The Commission Approved Commissioner Disero's Motion, As Amended.

Commissioner Moscoe Moved The Adoption Of Recommendation No. 2 Contained In The Report That The Entire $23 Million From The Rider's Reserve Be Used To Assist In Funding The 2002 Operating Budget Shortfall.

The Commission Approved Commissioner Moscoe's Motion On A Unanimous Vote.

Commissioner Mihevc Moved That Recommendation No. 4 Contained In The Report Be Struck Out And That The TTC Adopt A Position For 2002 And 2003 That No Service Cuts Will Be Implemented Or Public Notification Process Initiated To Discuss Service Cuts; And Further That The Staff Report Be Forwarded To All City Councillors For Information.

The Commission Approved Commissioner Mihevc's Motion On A Unanimous Vote.

Commissioner Mihevc Moved Adoption Of Recommendation Nos. 1, 5 And 6 Contained In The Report, As Listed Below:

"1. Receive This Report, Appendices And Presentation.

5. Request That The City Provides 100% Funding For All Items Of Ttc Capital Which Are Currently Funded Through The TTC Operating Budget.

6. Request that the city enter into a multi-year operating funding agreement with the TTC."

The Commission Approved Commissioner Mihevc's Motion On A Unanimous Vote.

The Commission Adopted The Staff Report, As Amended.

Chair Ashton Moved That The CGM Develop A Budget Schedule Process To Review Its 2003 TTC Operating And Capital Budgets; And Further That The CGM Report On The Current Value Auditing Policies And Practices, And The Work Programme Of The TTC Auditor For 2002 And 2003; And Further That The CAO And The CFO Of The City Of Toronto Be Advised Of The Schedule.

The Commission Approved Chair Ashton's Motion On A Unanimous Vote.

Commissioner Moscoe Moved That Staff Be Requested To Separate Out From The Operating Budget All Items That Are Capital Items And Report Back To The Commission With This Information.

The Commission Approved Commissioner Moscoe's Motion On A Unanimous Vote.

Commissioner Moscoe Moved That Staff Be Requested To Report On The Routes That Provide Service To Federal Minister David Collenette's Riding.

Commissioner Moscoe Voted In Favour. Chair Ashton, Vice-Chair Silva, Commissioner Miller, Commissioner Disero, Commissioner Altobello, Commissioner Mihevc And Commissioner Shaw Were Opposed. The Motion Therefore Lost On A 7 - 1 Vote.

Commissioner Miller Moved A Motion Of Confidence In The Chief General Manager.

The Commission Approved Commissioner Miller's Motion On A Unanimous Vote.

The Commission also had before it a communication dated April 25, 2002 from Councillor Anne Johnston, City of Toronto with respect to the potential cancellation of the 14 Glencairn bus route.

The Commission Received The Communication For Information.

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The meeting adjourned at 3:40 p.m.

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