Board Meeting - July 16, 2003

H. Moscoe (Chair), B. Ashton, D. Miller, J. Flint, P. Li Preti, N. Kelly and D. Shiner (Commissioners), R. Ducharme (Chief General Manager), V. Rodo (General Manager - Executive & General Secretary), G. Webster (General Manager – Operations), J. Sepulis (General Manager - Engineering & Construction), B. Leck (General Counsel), A. Chocorlan (Manager - Materials & Procurement), M. Roche (Chief Financial Officer), S. Blakey (Manager – Human Resources), R. Hughes (Chief Marketing Officer), T. Andrews (Chief Security Officer), W. Buffett (Assistant General Secretary) and F. Stanois (Coordinator - Secretariat Services) were present.
H. Moscoe was in the Chair.
R. Cornacchia, Deputy General Manager - Subway Operations was present for Item Nos. 1 and 14.
D. Leger, General Superintendent, Plant Maintenance Department was present for Item No. 2.
J. Cannon, Chief Information Officer was present for Item No. 14.

Nil

Commissioner Li Preti Moved That The Commission Approve The Minutes From Meeting No. 1829, And That The Chair And General Secretary Be Authorized To Sign The Same.

The Motion By Commissioner Li Preti Carried.

Nil

Nil

a) Report No. 21 - Hillcrest Yard Employee Parking Lot - Response to Proposed Operating Framework

Councillor Joe Mihevc
City of Toronto

The Commission Received The Deputation.
(See Item No. 21 For Minute)

b) Report No. 3 - Streetcar Track Rehabilitation

Steve Munro
Hamish Wilson

The Commission Received The Deputations.
(See Item No. 3 For Minute)

c) Non-Commercial Photography on TTC Property

Richard Hooles
(Submitted communication)

The Commission Received The Deputation.

Chair Moscoe Moved That The Matter Be Referred To Staff For Review And Appropriate Resolution With Mr. Hooles.

The Motion By Chair Moscoe Carried.

d) Report No. 12 - Procurement Authorization - Option to Purchase 250 40-Foot Low Floor Clean Diesel Buses from Orion Industries - Contract C32Y01883

Roger Roberts

The Commission Received The Deputation.
(See Item No. 12 For Minute)

e) Report No. 18 - Sale of Tunnel Boring Machine

Councillor Joe Mihevc
City of Toronto

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

CC-1 The Commission had before it a communication dated June 9, 2003 from Chair Moscoe entitled, "Deterioration of Streetcar Tracks."

The Commission also had before it a memorandum dated June 11, 2003 from R. Ducharme, Chief General Manager entitled, "Deterioration of Streetcar Tracks."
The Commission Received The Communications For Information.
(See Item No. 3 For Minute)

Presentations 
1. Transit Plan Re: July 30, 2003 Concert

R. Cornacchia, Deputy General Manager - Subway Operations gave an overhead slide presentation with respect to this matter.

The Commission Received The Presentation For Information.

Commissioner Ashton Moved That Staff Proceed With The Transit Plan For The Concert On July 30, 2003, Subject To Resolution In Writing From The Ministry Of Labour Approving Hours Of Work In Excess Of The Existing Requirements Of The Employment Standards Act, As Amended.

The Motion By Commissioner Ashton Carried.

Commissioner Shiner Moved That Staff Ask The Provincial And Federal Governments, Go Transit And Other Regional Transit Systems Around Toronto To Support This Initiative By Providing Service To And From The Concert.

The Motion By Commissioner Shiner Carried.

2. Management Program for Escalators and Elevators

D. Leger, General Superintendent, Plant Maintenance Department gave an overhead slide presentation with respect to this matter.

The Commission also had before it a memorandum dated June 18, 2003 from R. Ducharme, Chief General Manager entitled, "Staff Response to Commission Inquiry - Management Program for Escalators and Elevators."
The Commission Received The Presentation And Memorandum For Nformation.

Commissioner Flint Moved The Following Motions:

1. That Staff Be Requested To Take All Possible Measures To Reduce The Downtime Of Escalators.

2. That Staff Make Every Effort During Escalator Maintenance To Ensure That At Least One Escalator Is Always Going In The Up Direction In Those Stations Where There Is More Than One Escalator.

3. That Staff Be Requested To Report Back On The Escalator Situation On The Sheppard Subway Line.

The Motions By Commissioner Flint Carried.

Chair Moscoe Moved The Following Motions:

1. That Staff Be Requested To Develop A System Of Temporary Signage To Advise Patrons Of Escalator Maintenance, Including Alternatives Available And The Duration Of The Work Involved.

2. That Staff Be Requested To Report On The Possible Implementation Of A Real Time System For The Identification Of Escalator Stoppages.

The Motions By Chair Moscoe Carried.

3. Streetcar Track Rehabilitation

G. Webster, General Manager - Operations gave an overhead slide presentation with respect to this matter.

The Commission Received The Presentation For Information.

Chair Moscoe Moved The Following Motions:

1. That Staff Be Requested To Report Back On The Effect The Slow Orders For Streetcars Have Had On The Operating Budget.

2. That Staff Be Requested To Report Back On The Possibility Of Accelerating The Track Rehabilitation Budget.

The Motions By Chair Moscoe Carried.

Nil

4. Chief General Manager's Report - Period 5 May 4 to May 31, 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 May 4 to May 31, 2003, noting that:

• 2003 TTC Operating Budget

it is now anticipated that ridership by year-end will be some 6 million rides under budget, due to the impact of the Severe Acute Respiratory Syndrome (SARS) outbreak in the Toronto area; total revenues are expected to be $11 million under budget, with the shortfall offset by a reduction in the Contribution to Capital;

• 2003 Wheel-Trans Operating Budget

whilst no budget variance is currently anticipated, the impact of the 20% increase in taxi rates, the SARS outbreak and other factors will translate into a 3.5% unaccommodated rate for the year, in comparison to the 2% budgeted;

• 2003-2007 Capital Program

the year-end cash flow is projected to be $18.7 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

5. Procurement Authorization - Provision of Recruitment Advertising Services

It is recommended that the Commission approve the issuance of a purchase order for the total upset limit amount of $600,000 to Day Advertising for recruitment advertising services for a three year period from September 1, 2003 to August 31, 2006.

Approved

6. Procurement Authorization - Employee Family Assistance Program

It is recommended that the Commission approve the issuance of a purchase order in the total amount of $1,700,000 to Family Guidance Group Inc. (FGI) for the provision of employee family assistance counselling and related services for the five-year period from August 1, 2003 to July 31, 2008.

Approved

Commissioner Flint noted her opposition to the foregoing matter.

7. Procurement Authorization Contract No. G85-177 Architectural Design Services - Triennial Contract

It is recommended that the Commission authorize the award of a contract to Cole, Sherman Engineers & Architects Inc. for Architectural Design Services – Triennial Contract in the upset limit amount of $750,000 for a three-year period commencing from the date of notification of award.

Approved

8. Procurement Authorization Key Station Accessibility Eglinton West Station Contract A45-4

It is recommended that the Commission authorize the acceptance of the tender submitted by Steelcase Construction Inc. (Steelcase) in the amount of $3,708,000.00 for Contract A45-4, Key Station Accessibility – Eglinton West Station.

Approved

9.Procurement Authorization Downsview Station Various Miscellaneous Remediation Contract A23-9

It is recommended that the Commission authorize acceptance of the tender submitted by 1031644 Ontario Inc. o/a Consolidated Canadian Contractors (Consolidated) in the amount of $359,000 for Contract A23-9, Downsview Station, Various Miscellaneous Remediation.

Approved

10.Procurement Authorization Sheppard Subway Consultant Services Contract - Delcan-Hatch

It is recommended that the Commission authorize additional funding for 2003 in the amount of $606,000 (including GST) for the contract with Delcan-Hatch for consultant services for the Sheppard Subway project, bringing the total authorized amount to $147,219,574.
Approved

11.Procurement Authorization - Contract Amendment No.8 Supply of T-1 Subway Cars

It is recommended that the Commission approve the issuance of Contract Amendment No. 8 to Bombardier Inc., in the total amount of $526,009.39, of which $316,298.19 is to develop a T1 interface for the new Speed Control System, and $209,711.20 is to provide system software modifications for the T-1 Subway Cars.

Approved

12. Procurement Authorization - Option to Purchase 250 40-Foot Low Floor Clean Diesel Buses from Orion Bus Industries Contract C32Y01883, Amendment #3

It is recommended that the Commission:

1. Authorize staff to exercise the contract option with Orion Bus Industries of Mississauga in an amount not to exceed $136,000,000 for the purchase of 250 40-foot low floor clean diesel Orion VII buses for delivery in 2005, subject to approval by Council of the City of Toronto, and

2. Forward a copy of this report to the Council of the City of Toronto for approval of funds, and project commitment in an amount not-to-exceed $136,000,000 to cover the purchase and in-house costs for the procurement of 250 40-foot low floor clean diesel buses for delivery in 2005, and

3. Note that this procurement is based on the approved bus fleet plan and the 2003-2007 Capital budget program approved by the Council of the City of Toronto on February 26, 2003.

Approved

Commissioner Shiner Moved That Staff Be Requested To Submit A Further Report Providing Comment On The Recent Consultant's Report Which Compares TTC Maintenance Costs To Other Transit Properties Across Canada; And Further That Such Report Also Include What Savings And Efficiencies Would Be Achieved Through The Purchase Of A New Bus Fleet.

The Motion By Commissioner Shiner Carried.

13. Procurement Authorization- Purchase Order Amendment for the Provision of Police Paid Duty Services for Streetcar Way Section

It is recommended that the Commission approve the issuance of a Purchase Order Amendment in the upset limit of $105,000 to Toronto Police Services increasing the total contract value to $300,000 for the provision of police paid duty services for the Streetcar Way section for the period January 1, 2003 to December 31, 2003.
Approved

14.Purchase Authorization - Vehicle Work Order System

Commissioner Shiner Moved That Consideration Of The Report Be Deferred Until The Next Meeting.

The Motion By Commissioner Shiner Lost On The Following Recorded Vote:

For: Shiner, Moscoe, Kelly

Against: Ashton, Miller, Li Preti, Flint

Commissioner Shiner Moved That Staff Be Requested To Report Back With Information Quantifying The Benefits And/Or Savings From The Purchase Of The Vehicle Work Order System.

The Motion By Commissioner Shiner Carried On A Unanimous Vote.

Commissioner Li Preti Moved Adoption Of The Recommendation Contained In The Report, As Listed Below; And Further That Staff Be Requested To Report Back At The November Commission Meeting On Whether The System Meets The TTC'S Specifications And Needs, Including Information On Whether The System Could Be Shared With Other City Departments, Agencies, Boards Or Commissions.

"It Is Recommended That The Commission Approve The Issuance Of A Conditional Contract To Ifs North America Inc., In The Upset Limit Amount Of $7,902,000.00 (including taxes) for The Purchase Of A Vehicle Work Order System And Inventory System."

The Motion By Commissioner Li Preti Carried On The Following Recorded Vote:

For: Li Preti, Ashton, Miller, Flint

Against: Shiner, Kelly, Moscoe

15.Purchase of Bendix Parts

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

• Fort Garry Industries Limited for $1,447,000 including applicable taxes.

• MCI Services Parts for $51,000 including applicable taxes.

• Neopart for $38,000 including applicable taxes.

• Thorncrest Sherway Incorporated for $14,000 including applicable taxes.

• Orion Bus Industries Limited for $8,000 including applicable taxes.

• Metro International Toronto Incorporated for $2,000 including applicable taxes.

Approved

14. Purchase of Adhesives

It is recommended that the Commission authorize the issuance of amendments to the following companies in the upset limit amounts indicated (including applicable taxes) for the period expiring October 28, 2005 for the supply of adhesives:

Company Current P.O. Value Amendment Value Revised P.O. Value

Hansler Smith Ltd. $240,000 $184,000 $424,000

British Auto $ 5,000 $ 8,000 $ 13,000

Approved

15. Summary of Authorized Expenditures for the Period May 4, 2003 to May 31, 2003

It is recommended that the Commission receive this report for information. It lists expenditures ($100,000 up to $200,000) for the period May 4, 2003 to May 31, 2003, which were approved by Senior Management.

Received

16. Sale of Tunnel Boring Machine

Chair Moscoe Moved Adoption Of The Recommendation Contained In The Report, As Listed Below:

It Is Recommended That The Commission Authorize The Acceptance Of An Offer From Lovat Incorporated For The Sale Of The Remaining Tunnel Boring Machine (Tbm) For $2,500,001 Plus GST.

The Motion By Chair Moscoe Carried On The Following Recorded Vote:

For: Moscoe, Miller, Ashton, Kelly

Against: Li Preti, Shiner

Commissioner Flint was not present to vote on the foregoing motion.

17. Appointment of External Auditors

It is recommended that the Commission confirm the TTC Audit Committee’s:

1. Appointment of Ernst & Young LLP to perform the 2003 to 2007 financial year-end audits of the TTC; and

2. Issuance of a five-year contract in the amount of $489,000 for these services to the TTC and its related entities (Toronto Coach Terminal Inc., TTC Insurance Company Limited, TTC Pension Fund Society and TTC Sick Benefit Association).

Confirmed

14. Leadership and Professional Development Training Program

It is recommended that the Commission approve the attendance of Mike Roche, Chief Financial Officer at the Queen's School of Business in order to attend the Leadership Program from September 7 to 12, 2003 (total estimated cost of $8,000).

Approved

15. Hillcrest Yard Employee Parking Lot -  Response to Proposed Operating Framework

Commissioner Shiner Moved That The Report Be Deferred Until The Next Meeting To Allow Staff To Meet With The Local Councillor And Other Stakeholders To Work Out A Mutual Arrangement.

The Motion By Commissioner Shiner Carried.

Nil

C-1 T. Hudak, Minister of Consumer and Business Services responding to the Commission's letter of May 16, 2003 regarding the Electrical Safety Authority's fee restructuring plan.

The Commission Received The Communication For Information.

Commissioner Ashton Moved That Staff Be Requested To Report Back On The Results Of Their Consultations With The Electrical Safety Authority.

The Motion By Commissioner Ashton carried.

C-2 F. Klees, Minister of Transportation restating and clarifying the Province's support for the City of Toronto and the TTC in relation to public transit expenditures.

The Commission Received The Communication For Information.

Commissioner Miller Moved That The Chair Respond To Minister Klee's Letter Stating The TTC'S Position With Respect To The Issue Of Funding, With Acknowledgement And Thanks For The Funds Already Provided By The Province.

The Motion By Commissioner Miller Carried.

Commissioner Li Preti Moved That The TTC Chair, City Budget Chair And Any Other Interested Commissioners Be Requested To Seek A Meeting With Minister Klees And G. Chong, Chair, Go Transit In An Effort To Find Solutions To The Current Funding Disagreements.

The Motion By Commissioner Li Preti Carried.

C-3 Hon. Arthur C. Eggleton, P.C., M.P, York Centre responding to Chair Moscoe's letter dated May 26, 2003 concerning federal funding for the TTC.

The Commission Received The Communication For Information.

Commissioner Miller Moved That The Chair Be Requested To Prepare A Response To Mr. Eggleton Thanking Him For His Letter, Including The Provision Of Information Showing Federal Funding Models Used In The United States.

The Motion By Commissioner Miller Carried.

Commissioner Flint Moved That The Chair Be Requested To Prepare A Letter To David Collenette, Federal Minister Of Transport Asking Whether He Is Supportive Of The GTA Caucus Position Regarding The Funding Of Transit And Whether He Will Be Bringing This Issue Forward For The Consideration Of Cabinet.

The Motion By Commissioner Flint Carried.

a) Revised Motion - Environmental Assessments

- Proposed Extensions of the Spadina & Sheppard Subways

The Commission had before it the following motion submitted by Commissioner Li Preti:

Whereas the provision of high-quality rapid transit service is critical to attracting travellers to transit, as is advocated in the City of Toronto's new Official Plan, in York Region's new Transportation Master Plan, by the Central Ontario Smart Growth Panel, and by the Federal Government's Kyoto Action Plan; and

Whereas the undertaking of Environmental Assessments of the extensions of the Spadina and Sheppard Subways would be consistent with the provision of such high-quality rapid transit in the Greater Toronto Area; and

Whereas it is the common interests of the City of Toronto, the Regional Municipality of York and the Toronto Transit Commission to proceed with Environmental Assessment studies in support of the extensions of these subways, both of which would facilitate both inter-regional and intra-regional transit travel; and

Whereas the City of Toronto and the Toronto Transit Commission have expressed strong support for the extension of the Spadina and Sheppard subways, and confirmed them as their top priorities for transit expansion; and

Whereas the Regional Municipality of York has demonstrated a financial commitment to participating in the extension of the subway beyond Steeles Avenue by purchasing lands on the north side of Steeles Avenue adjoining York University for an Inter-Regional Bus Terminal/Commuter Parking Gateway Facility, and is fully financing the cost of the Environmental Assessment Study for rapid transit including a future subway from that facility north to Highway 7; and,

Whereas the City of Toronto, the Toronto Transit Commission, the Regional Municipality of York, the City of Vaughan and York University have cooperated extensively in their planning and advocacy efforts as evidenced by their participation in the Spadina-York Subway Extension Committee and the development of a business case report that was submitted to all interest parties; and

Whereas the Provincial and Federal Governments have recently announced the provision of funding for transit initiatives which facilitate inter-regional transit travel; and

Whereas the total costs of the Environmental Assessments for the extensions of the Spadina and Sheppard Subways is approximately $5 million; and

Whereas the Provincial and Federal governments have not yet agreed to provide any funding towards the undertaking of these Environmental Assessments;

Therefore be it resolved that, in order to achieve an equal municipal-provincial-federal sharing of the costs of the environmental assessments for these subway extensions, that;

• The City of Toronto commits to funding the one-third municipal share of the Environmental Assessment study as it relates to the extension of the subway from Downsview station to the proposed York University station;

• The City of Toronto and the Regional Municipality of York commit to equally cost-share the municipal portion of the Environmental Assessment study as it relates to the section of the proposed line from the York University station to the Inter-Regional Bus Terminal/Commuter Parking Gateway Facility at Steeles Avenue; and

• The City of Toronto, the Toronto Transit Commission, the Regional Municipality of York, the City of Vaughan and York University continue to work cooperatively to ensure the coordination of these studies and present a unified submission to the senior levels of government requesting their participation; and

• The one-third provincial share of the $5 million cost of the environmental assessments for the extensions of the Spadina and Sheppard Subways be requested from the Province through the submission of a new application to the Province of Ontario's Golden Horseshoe Transit Investment Partnership, which would be jointly prepared and submitted by the City of Toronto, the Regional Municipality of York, the Toronto Transit Commission; and York University; and

• The one-third federal share of the $5 million cost of the environmental assessments for the extensions of the Spadina and Sheppard Subways be requested from the federal government through the submission of a new application to the Government of Canada's Canada Strategic Infrastructure Fund, which would be jointly prepared and submitted by the City of Toronto, the Regional Municipality of York, the Toronto Transit Commission and York University."

Commissioner Li Preti Moved Adoption Of The Motion And Requested That It Be Forwarded To Toronto City Council For Consideration At Its Meeting On July 22, 2003, And That It Be Identified As A Critical Item.

The Motion By Commissioner Li Preti Carried.

b) Committee of the Whole Resolution

The Commission Approved A Resolution By Commissioner Flint To Meet As The Committee Of The Whole At 10:00 A.M.On Wednesday, August 27, 2003, To Deal With Litigation Or Potential Litigation Matters, Labour Relations Or Employee Negotiations And To Receive Advice Which Is Subject To Solicitor-Client Privilege.

The meeting adjourned at 5:25 p.m.

Nil