Board Meeting - December 17, 2003

H. Moscoe (Chair), J. Mihevc (Vice-Chair), B. Ashton, D. Miller, D. Shiner, P. Li Preti, S. Bussin, and B. Balkissoon (Commissioners), R. Ducharme (Chief General Manager), V. Rodo (General Manager - Executive & General Secretary), G. Webster (General Manager – Operations), J. Sepulis (General Manager - Engineering & Construction), L. Hilborn (Deputy General Manager - Corporate), B. Leck (General Counsel), A. Chocorlan (Manager - Materials & Procurement), M. Roche (Chief Financial Officer), R. Hughes (Chief Marketing Officer), S. Blakey (Manager - Human Resources), T. Andrews (Chief Special Constable), M. Stambler (Manager, Service Planning), W. Buffett (Assistant General Secretary) and A. Patrone (Administrative Coordinator) were present.

K. Watling, Head, Signals Engineering and S. McKay, Senior Design Engineer, Signals Engineering were present for Item No. 1.

Prior to commencing with the agenda, Chair Moscoe provided an update with respect to a recent issue of the CNIB charging a service fee for distribution of TTC passes to their clients. Chair Moscoe noted that the CNIB has subsequently reversed this decision and would not be proceeding with the proposed fee.

The Commission Received The Foregoing Update For Information.

Nil

a) Meeting No. 1835

Chair Moscoe Moved That The Commission Approve The Minutes From Meeting No. 1835, And That The Chair And General Secretary Be Authorized To Sign The Same, Subject To The Following Amendment:
Delete The Following Motion On Page 4:

"Chair Moscoe Moved That In Future, Prior To Any Service Changes Being Made, Staff Seek Specific Authorization From The Commission; And Further That Any Proposed Service Adjustments Be Subject To At Least One Public Hearing", And Replace In Lieu Thereof The Following Wording:

"Chair Moscoe Distributed A Report Detailing The Service Cuts That Were Being Proposed.
Chair Moscoe Moved That In Future, Prior To Any Service Changes Being Made Which Would Cause Overall Service Levels To Be Significantly Different From The Approved Budgeted Levels, Staff Seek Specific Authorization From The Commission; And Further That Any Proposed Service Adjustments Which Would Result In Such A Divergence From Approved Budgeted Levels Be Subject To At Least One Public Meeting."

The Motion By Chair Moscoe Carried.

Commissioner Mihevc Moved That The Commission Approve The Minutes From Meeting No. 1836, And That The Chair And General Secretary Be Authorized To Sign The Same.

The Motion By Commissioner Mihevc Carried.

Nil

Commissioner Shiner advised that the Committee of the Whole had received a staff report entitled, "Information for New Commissioners re: Fiduciary Duty of Commissioners and Commission Meeting Procedural By-Law."

The Commission Received And Noted The Foregoing.

a) Proposal to Introduce a Toronto Travel Pass

Mary Kainer
(Submitted proposal)

The Commission Received The Deputation.

Chair Moscoe Moved That The Proposal Submitted By Ms. Kainer Be Referred To The City Planning And Transportation Committee For Review And Consideration.

The Motion By Chair Moscoe Carried.

b) Report No. 18a) - Easier Access Program Status Report

Peter Lambert

The Commission Received The Deputation.
(See Report No. 18A For Minute)

c) Item #2 - Budget Update

Lin Wong

Rocket Riders Toronto Environmental Alliance
(Submitted brief)

Michael Rosenberg
The Commission Received The Deputations.

Nil

1. Procurement Authorization - Supply of Vital Relays

K. Watling, Head, Signals, Signals Engineering gave a PowerPoint presentation with respect to this matter.
After Receiving The Presentation, The Commission Approved The Recommendation Contained In The Report, As Listed Below:
"It Is Recommended That The Commission Approve:

A) Awarding A Contract To Alstom Signalling Inc. In The Amount Of $2,236,271.75 For The Supply Of 4,957 Vital Relays, To Be Supplied Over The Years 2003 to 2007;

B) Funds In The Estimated Amount Of $44,725.43 To Cover Brokerage And Freight Charges, Which Will Be Paid By The Commission To The Commission's Border Broker UPS SCS; And

C) Funds In The Amount Of $156,539.02 For GST And $178,901.74 For PST, To Be Self-Assessed By The Commission And Paid To The Federal And Provincial Governments Respectively.
The Total Cost Of This Procurement Is Therefore $2,616,437.94."

2. Budget Update

V. Rodo, General Manager - Executive & General Secretary gave an overhead slide presentation with respect to this matter.

The Commission Received The Presentation For Information.

Vice-Chair Mihevc Moved That The Commission Convene A Special Meeting, As Early As Possible In January To:

1. Review Capital And Operating Budgets; And

2. Discuss A Possible Fare Increase.

Commissioner Shiner Moved That The Commission Defer Convening A Special Commission Meeting Until Such Time As The Province Sets Their Spring Budget.

Chair Moscoe Called For A Vote On Commissioner Shiner's Motion.

For: Commissioner Shiner, Commissioner Balkissoon And Commissioner Li Preti

Against: Vice-Chair Mihevc, Chair Moscoe, Mayor Miller, Commissioner Ashton And Commissioner Bussin

The Motion By Commissioner Shiner Lost On A 5 - 3 Vote.

Chair Moscoe Called For A Vote On Part 1 Of Vice-Chair Mihevc's Motion.

Part 1 Of Vice-Chair Mihevc's Motion Carried On A Unanimous Vote.

Chair Moscoe Called For A Vote On Part 2 Of Vice-Chair Mihevc's Motion.

For: Vice-Chair Mihevc, Chair Moscoe, Mayor Miller, Commissioner Ashton And Commissioner Bussin

Against: Commissioner Shiner, Commissioner Balkissoon And Commissioner Li Preti

The Motion By Vice-Chair Mihevc Carried On A 5 - 3 Vote.

Commissioner Shiner Moved That The Chair And Mayor Continue To Meet With The Premier In An Effort To Obtain Sufficient Funding For The TTC To Avoid A Fare Increase.

The Motion By Commissioner Shiner Carried On A Unanimous Vote.

Commissioner Ashton Moved That Staff Be Requested To Report Back On Options Available For Accommodating The $48 Million Operating Shortfall Should A 10¢ Fare Increase Come Into Effect.

Chair Moscoe Called For A Vote On Commissioner Ashton's Motion.

FOR: Commissioner Ashton, Chair Moscoe, Vice-Chair Mihevc, Mayor Miller, Commissioner Bussin, Commissioner Balkissoon And Commissioner Li Preti

Against: Commissioner Shiner

The Motion By Commissioner Ashton Carried On A 7 - 1 Vote.

Commissioner Ashton Moved That The TTC Invoice The Province Of Ontario For $8 Million To Provide A Rebate For Diesel Fuel Taxes Paid To The Province By The TTC.
Chair Moscoe Called For A Vote On Commissioner Ashton's Motion.

The Motion By Commissioner Ashton Carried On A Unanimous Vote.

3. Chief General Manager's Report - Period 10 October 5 to November 1, 2003

It is recommended that the Commission:

1. Receive for information the attached Executive Summary of the Chief General Manager's (CGM's) report covering the period October 5 to November 1, 2003, noting that:

• 2003 TTC Operating Budget

it is still anticipated that by year-end ridership will be some 8 million rides under budget and revenues will be $15 million under budget, with this unbudgeted shortfall offset by a reduction in the Contribution to Capital;

• 2003 Wheel-Trans Operating Budget

no budget variance is anticipated but the unaccommodated rate for the year is expected to be 3.2%, in comparison to the 2% budgeted;

• 2003-2007 Capital Program

the year-end cash flow is projected to be $84.2 million less than budgeted; and

1. Forward a copy of this cover report and the Executive Summary to each City Councillor for information (noting that the detailed CGM’s report is available on request from the Office of the General Secretary of the Commission).

Adopted

4. Procurement Authorization Sheppard Subway

Consultant Services Contract - Delcan-Hatch

It is recommended that the Commission authorize funding in the amount of $800,000 for the contract with Delcan-Hatch for the continuation of consultant services for the Sheppard Subway Project for the period January 1 through to December 31, 2004, bringing the total authorized amount to $148,087,974.

Approved

5. Procurement Authorization Broadview

Station Station Modifications Contract D5-10

It is recommended that the Commission authorize the acceptance of the tender submitted by Dineen Construction Corporation (Dineen) in the amount of $4,449,000.00 for Contract D5-10, Broadview Station - Station Modifications.

Approved

6. Procurement Authorization - Voice/Data Telecommunication Services

It is recommended that the Commission authorize a contract to Bell Canada, in the upset limit of:

a) $12,370,000 for voice communication services for a period of five (5) years from January 15, 2004 up to January 14, 2009; and

b) $4,020,000 for data telecommunication services for a period of five (5) years from January 15, 2004 up to January 14, 2009.

Approved

7. Procurement Authorization - Supply of Electric

Flash Butt Welding for Surface and Subway Rail
It is recommended that the Commission approve the award to RJ Corman Railroad Construction, LLC, for the supply of electric flash butt rail welding, for the contract period of January 1, 2004 to December 31, 2006, in the upset limit amount of $1,835,000.00.

Approved

8. Purchase of Rail Enclosures

It is recommended that the Commission authorize the award of a three-year inventory supply contract for the supply of rail enclosures to Iron Horse Engineering Company in the upset limit amount of $5,250,000 including applicable taxes for the period December 2003 to December 2006.
Approved

9. Purchase of Retrac Plates

It is recommended that the Commission authorize the award of a three-year inventory supply contract for the supply of retrac plates to Ronsco Incorporated in the upset limit amount of $3,560,000 including applicable taxes, for the period December 2003 to December 2006.

Approved

10. Purchase of Rail

It is recommended that the Commission authorize the award of three-year inventory supply contracts for the supply of rail to the following companies for the period from December 2003 to December 2006:

• L.B. Foster Company for an upset limit of $7,200,000 including applicable taxes.

• M. F. Wirth Rail Corporation for an upset limit of $430,000 including applicable taxes.

Approved

11. Purchase of Clip Covers

It is recommended that the Commission authorize the award of a three-year inventory supply contract for the supply of clip covers to H.J. Skelton (Canada) Limited in the upset limit amount of $420,000 including applicable taxes, for the period December 2003 to December 2006.

Approved
 
12. Purchase of CLRV Air Dryers

It is recommended that the Commission authorize the award of a contract to Pandrol Canada Ltd. in the amount of $536,854.50 for the supply of air dryers for the CLRV Streetcars.

Approved

13. Summary of Authorized Expenditures

for the Period October 5, 2003 to November 1, 2003

It is recommended that the Commission receive this report for information. It lists expenditures ($100,000 up to $200,000) for the period October 5, 2003 to November 1, 2003, which were approved by Senior Management.

Received

14. Proxy to Vote Toronto Transit

Commission Shares in Toronto Coach Terminal Inc.

It is recommended that the Commission approve the attached proxy to exercise the 10,000 Toronto Transit Commission shares in the Toronto Coach Terminal Inc. for any Toronto Coach Terminal Inc. Shareholders Meeting that is held during the year 2004.

Approved

15. Proxy to Vote Toronto Transit Commission Shares in Toronto Transit Consultants Limited

It is recommended that the Commission approve the attached proxy to exercise the 1,000 Toronto Transit Commission shares in Toronto Transit Consultants Limited for any Toronto Transit Consultants Limited Shareholders Meeting that is held during the year 2004.

Approved

16. Lease of Retail Space - Sheppard Subway Station

It is recommended that the Commission approve the execution of a five-year lease agreement with an option to renew for one additional five-year term with Allan Gewarges (in trust for a company to be incorporated) for the lease of 258 square feet of retail space at Sheppard Subway Station based on the terms and conditions outlined herein.

Approved

17. 2004 Commission Meeting Schedule

Vice-Chair Mihevc Moved That The Commission Approve The January And February Meeting Dates Listed In The Report, And That Staff Be Requested To Conduct A Review Of The Remainder Of The Proposed Schedule For Possible Alternative Dates.

The Motion By Vice-Chair Mihevc Carried.

a) Easier Access Program Status Report

The Commission had before it a memorandum dated December 17, 2003 from R. Ducharme, Chief General Manager entitled, "Staff Response to Commission Inquiry - Easier Access Program Status Report."

The Commission Received The Memorandum For Information.

C-1 V. Rodo, General Secretary, TTC to U. Watkiss, City Clerk, City of Toronto dated December 3, 2003 advising of Commission decision regarding the 2004 TTC Operating Budget.
The Commission Received The Communication For Information.

C-2 V. Rodo, General Secretary, TTC to The Honourable Chris Bentley, Minister of Labour dated December 8, 2003 requesting the Minister to grant an exemption from the provisions of the Employment Standards Act; and further advising of the associated budget implications.

The Commission Received The Communication For Information.

a) Staff Report - TTC Spadina Subway Extension

Commissioner Li Preti referred to a staff report prepared by staff entitled, "Toronto Transit Commission - Spadina Subway Extension", which has been submitted to the Provincial Minister of Transportation and the Deputy Head of Infrastructure Canada. Commissioner Li Preti asked staff to comment on the schedule for the proposed project.
J. Sepulis, General Manager, Engineering and Construction gave a verbal update concerning this matter.

The Commission Received The Update For Information.
Vice-Chair Mihevc Moved That It Is The Desire Of The Commission To Expedite All Matters Relating To The Construction Of The Spadina Subway Extension As Quickly As Possible.
The Motion By Vice-Chair Mihevc Carried.

b) Committee of the Whole Resolution

The Commission Approved A Resolution By Vice-Chair Mihevc To Meet As The Committee Of The Whole At 10:00 a.m. On Wednesday, January 21, 2004, To Deal With Litigation Or Potential Litigation Matters, Labour Relations Or Employee Negotiations And To Receive Advice Which Is Subject To Solicitor-Client Privilege.

21. Appointments to TTC Sub-Committees

Chair Moscoe circulated a list of TTC Sub-Committees and requested the members to indicate their preference for which Sub-Committee they wished to sit on.

After Circulation Of The List, Chair Moscoe Moved The Following Appointments:

Advertising Review Committee

Commissioner Bussin
Vice-Chair Mihevc
Chair Moscoe

Audit Committee

Commissioner Balkissoon
Commissioner Shiner
Commissioner Giambrone
Commissioner Li Preti

Budget Sub-Committee

Commissioner Giambrone
Commissioner Ashton
Chair Moscoe
Vice-Chair Mihevc

Litigation Sub-Committee

Commissioner Ashton
Commissioner Balkissoon
Commissioner Li Preti

The Motion By Chair Moscoe Carried.

The meeting adjourned at 3:40 p.m.