Board Meeting - May 14, 2003

S. Shaw (Vice-Chair), B. Ashton, D. Miller, J. Flint, 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), L. Hilborn (Deputy General Manager - Corporate), B. Leck (General Counsel), A. Chocorlan (Manager - Materials & Procurement), P.F. Buttigieg (Acting Chief Financial Officer & Chief Accountant - Financial Services), S. Blakey (Manager – Human Resources), R. Hughes (Chief Marketing Officer), T. Andrews (Chief Security Officer), M. Stambler (Manager - Service Planning), W. Buffett (Assistant General Secretary) and F. Stanois (Coordinator - Secretariat Services) were present.

S. Shaw was in the Chair.

Nil

Commissioner Ashton Moved That The Commission Approve The Minutes From Meeting Nos. 1826 and 1827, And That The Chair And General Secretary Be Authorized To Sign The Same.

The Commission Approved The Motion By Commissioner Ashton.

Nil

The Committee of the Whole had before it a memorandum dated May 14, 2003 from R. Ducharme, Chief General Manager entitled, "Proposed Ceramic Mural: Gift from the Government of Portugal."

The Commission Approved The Installation Of A Ceramic Mural At Queen's Park Station.

a) Student Fare Privileges for Students Outside of Toronto

Philip Perlmutter

The Commission Received The Deputation.

Commissioner Ashton Moved That The Commission Refer The Issue Of Extending Student Fare Privileges To Students Outside Of Toronto To Staff For Report, And That The Deputant Be Notified When The Report Comes Forward For Consideration.

The Commission Approved The Motion By Commissioner Ashton.

Nil

a) White Cane Week - C.N.I.B.

Vice-Chair Shaw introduced Mr. Randy Firth, Manager, Communications/Community Development, Canadian National Institute for the Blind who was in attendance to present the Commission with the 2003 White Cane Week Award in recognition of the TTC's contribution to the well being of blind, visually impaired and deafblind persons in Toronto.
Vice-Chair Shaw accepted the award on behalf of the Commission.

1. Chief General Manager's Report - Period 3 March 2 to April 5, 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 March 2 to April 5, 2003, noting that:

•2003 TTC Operating Budget

the projected shortfall of approximately $17 million has not yet been adjusted to reflect the increasing impact of the Severe Acute Respiratory Syndrome (SARS) outbreak in the Greater Toronto Area (GTA) which is explained later in this report;

•2003 Wheel-Trans Operating Budget

that no budget variance is currently projected but that the potential impact of the 20% increase in taxi rates and the SARS outbreak is being evaluated;

•2003-2007 Capital Program

that the year-end cash flow is projected to be $16.4 million less than budgeted; and

(2) 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

Commissioner Ashton Moved That The City Of Toronto Be Advised Of The Interim Ridership Losses Of 1.3 Million Rides At A Cost Of $2.2 Million During The SARS Period; And Further That The City Be Requested To Ensure That The TTC Losses Are Accommodated In Any Potential Business Loss Subsidies Flowing From The City, Province And/Or Federal Government.

The Commission Approved The Motion By Commissioner Ashton.

2. Consolidated Financial Statements of Toronto Transit Commission for Year Ended December 31, 2002

It is recommended that the Commission:

(1) receive and approve the attached consolidated financial statements of the Toronto Transit Commission for the year ended December 31, 2002; and

(2) forward a copy of the approved consolidated financial statements to the City of Toronto Council, through the City Policy and Finance Committee.

Adopted

3. Audit Results - Year Ended December 31, 2002

It is recommended that the Commission receive for information the attached report from the auditors regarding the audit of the consolidated financial statements of the Toronto Transit Commission for the year ended December 31, 2002.

Received

4. Procurement Authorization - Construction Management Services Triennial Contract - Contract G85-154

It is recommended that the Commission authorize the award of contracts to the following firms in the upset amounts listed below, for Construction Management Services for a three-year period commencing from notification of awards:

1) Stantec + UMA Joint Venture (a joint venture between Stantec Consulting Limited and UMA Engineering Limited) for $2,000,000;

2) McCormick Rankin Corporation for $1,000,000;

3) SNC-Lavalin Engineers & Constructors Incorporated for $1,000,000;

for a total upset limit of $4,000,000.

Approved

5. Procurement Authorization Broadview Station Upgrades and Relocations by Toronto Hydro

It is recommended that the Commission authorize funds in the following amounts to allow the issuance of two (2) single source Purchase Orders to Toronto Hydro:

1) $275,000.00 to update the transformer vault equipment and reconstruct the associated ductbank;

2) $165,000.00 to relocate a hydro pole, relocate overhead lines and reconstruct a cable chamber and associated underground duct banks.

Approved

6. Procurement Authorization Davisville Carhouse - Roofing Rehabilitation Contract S5-27

It is recommended that:

1) the Commission authorize acceptance of the tender submitted by Nortex Roofing Ltd. in the amount of $1,280,000.00, for Contract S5-27 Davisville Carhouse - Roofing Rehabilitation; and

2) this report be forwarded to the City Budget Advisory Committee for information.

Approved

7. Procurement Authorization - Supply of Escalator Handrails

It is recommended that the Commission approve the award of a contract to Escalator Handrail Company Inc., in the upset limit of $405,000, for the supply of escalator handrails for a two-year period from June 1, 2003 to May 31, 2005.

Approved

8. Procurement Authorization - Supply of Window Cleaning Services

It is recommended that the Commission approve the issuance of purchase orders to Sparkle Window Cleaning, for an upset limit of $177,000, for the supply of window cleaning services at various Commission surface locations (including TCT and Wheel-Trans) and to H. Breiter Window Cleaning Limited, for an upset limit of $310,000, for the subway/SRT locations. The contract periods are June 1, 2003 to May 31, 2006.

Approved

9. Procurement Authorization - Supply of Architectural Paint

It is recommended that the Commission authorize the award of a contract to ICI Canada Inc. (Glidden), in the upset limit amount of $530,000 for the supply of architectural paint for the contract period June 1, 2003 to May 31, 2006.

Approved

10. Procurement Authorization - Upgrades to Trackswitch Control System - Phase II

It is recommended that the Commission authorize the award of a contract to Alcatel Canada Inc., Transport Automation Division, in the amount of $657,232.58, including Specified Option No. 2 for the design and supply of Phase II Upgrades to the TTC's Streetcar Trackswitch Control System.

Approved

11. Procurement Authorization - Preventive Maintenance and Repair of Linear Induction Motors (LIM)

It is recommended that the Commission authorize the award of a two-year contract to Sherwood Electromotion for the repair and scheduled preventive maintenance of SRT Linear Induction Motors in the total upset limit amount of $625,000 for the period May 31, 2003 to May 30, 2005.

Approved
 
12. Procurement Authorization - Supply of Courier and Cartage Services

It is recommended that the Commission authorize the award of a contract to Atripco Delivery Service (Atripco) for the provision of courier and cartage services in the total upset limit amount of $610,000 for a three-year term commencing on June 1, 2003.

Approved

13. Purchase Order Amendment - Human Resources Legal Services

It is recommended that the Commission authorize a purchase order amendment for an increase of the award of contract to Hicks Morely Hamilton Stewart Storie LLP (Hicks) for human resources legal services for the two-year period ending July 20, 2003, in the amount of $250,000, bringing the total upset limit amount for this two-year period to $850,000.

Approved

14. Purchase Order Amendment Authority - Continuous Safety Services Agreement Between the Electrical Safety Authority and Toronto Transit Commission

It is recommended that the Commission approve the issuance of an amendment in the amount of $602,139.92 to increase the contract with the Electrical Safety Authority (ESA) for the provision of electrical inspection services to a total of $794,189.92 including taxes and to extend the completion of the contract to May 31, 2006.

Approved

Commissioner Ashton Moved That The TTC Request The Minister Of Consumer And Business Services To Ensure The Electrical Safety Authority Schedule Restructuring Plan For 2004 Leads To More Efficient And Effective Service Delivery And Economical Fees For Large Corporate Customers Like The TTC.

The Commission Approved The Motion By Commissioner Ashton.

15. Purchase of Streetcar Rubber Pads

It is recommended that the Commission authorize the purchase for inventory of 4,000 streetcar rubber pads from Penn Machine Company in the amount of $210,010 including applicable taxes.

Approved

16. Purchase of Railwel Rail Welding Parts

It is recommended that the Commission authorize the award of a three-year inventory supply contract for rail welding parts for the period from May 2003 to May 2006 to Railwel Industries Incorporated for an upset limit of $390,000 including applicable taxes.

Approved

17. Purchase of Delco Parts

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

• Fort Garry Industries Limited for $256,000 including applicable taxes.

• Avenue Motor Works Incorporated for $132,000 including applicable taxes.

• General Auto Parts for $60,000 including applicable taxes.

• Elreg Distributors Limited for $46,000 including applicable taxes.

• Neopart for $35,000 including applicable taxes.

• MCI Service Parts for $20,000 including applicable taxes.

• British Auto Supply for $7,000 including applicable taxes.

• Prevost Parts for $3,000 including applicable taxes.

Approved

18. Purchase of Bus Vehicle Parts

It is recommended that the Commission authorize the following for inventory:

1. Additional funds for the purchase orders with the following companies in the amounts as follows:

• MCI Service Parts for $329,000 resulting in a revised upset limit of $1,899,000. 

• Prevost Car Incorporated (Prevost Parts) for $5,000 resulting in a revised upset limit of $495,000.

• Baker Transit Parts Incorporated for $69,000 resulting in a revised upset limit of $504,000.

• Neopart for $85,000 resulting in a revised upset limit of $520,000.

• Natsco for $14,000 resulting in a revised upset limit of $364,000.

• New Flyer Industries for $20,000 resulting in a revised upset limit of $115,000.

2. The award of three-year inventory supply contracts for bus parts to the following companies for the period from May 2003 to January 2005:

• Orion Bus Industries for $911,000 including applicable taxes.

• Mohawk Manufacturing and Supply Company for $47,000 including applicable taxes.

• Elreg Distributors Limited for $2,000 including applicable taxes.

• Cadel for $1,000 including applicable taxes.

Approved

19. Purchase of ELF Body Bus Parts

It is recommended that the Commission authorize for inventory, additional funds in the amount of $133,000 for the purchase order with Overland Custom Coach Incorporated for the supply of ELF bus body parts resulting in a revised total upset limit of $681,000.

Approved

20. Purchase of Thermo King Parts

It is recommended that the Commission authorize for inventory, additional funds for the purchase orders with the following companies in the amounts as follows:

• Thermo King Toronto for $24,000 resulting in a revised upset limit of $599,000.

• Orion Bus Industries Limited for $113,000 resulting in a revised upset limit of $177,000.

Approved

21. Purchase of New Flyer Bus Parts

It is recommended that the Commission authorize for inventory, additional funds in the amount of $152,000 for the purchase order with New Flyer Industries for the supply of New Flyer bus parts resulting in a revised total upset limit of $3,952,000.

Approved

22. Purchase of Wabco Vehicle Parts

It is recommended that the Commission authorize for inventory, additional funds in the amount of $204,000 for the purchase order with Wabco Company Limited for the supply of Wabco vehicle parts resulting in a revised total upset limit of $8,504,000.

Approved

23. Purchase of Detroit Diesel Vehicle Parts

It is recommended that the Commission authorize for inventory, additional funds in the amount of $133,000 for the purchase order with Harper Detroit Diesel Limited for the supply of Detroit Diesel parts resulting in a revised total upset limit of $16,853,000.

Approved

24. Purchase of Vapor Parts

It is recommended that the Commission authorize the issuance of an amendment in the amount of $186,000 to increase the contract with Vapor Rail Inc. for the supply of Vapor parts to the total upset limit of $3,086,000 for the period expiring July 31, 2004.

Approved

25. Purchase of Bearings

It is recommended that the Commission authorize the following:

a) The issuance of an amendment in the amount $10,000 to increase the contract with Reliable Bearing Co. Ltd. for the supply of bearings to the total upset limit of $2,810,000 for the period expiring May 16, 2004; and

b) The issuance of a new contract to BDI Canada for the supply of bearings in the upset limit amount of $150,000 for the period expiring May 16, 2004.

Approved

26. Purchase of OBI Bus Vehicle Parts

It is recommended that the Commission authorize the issuance of an amendment in the amount of $205,000 to increase the contract with Orion Bus Ind. for the supply of OBI Bus Vehicle Parts to the total upset limit of $7,305,000 for the period expiring November 12, 2004.

Approved

27. Purchase of Electronic Jobber Parts

It is recommended that the Commission authorize the following regarding the supply of electronic jobber parts:

a) The issuance of amendments to the following companies in the upset limit amounts indicated for the period expiring September 3, 2004:

Company / Original P.O. Value / Amendment Value / Revised P.O. Value

Newark In One / $706,000 / $110,000 / $816,000

CEA Telecom / $236,000 / $ 12,000 / $248,000

Electro-Sonic Inc. / $152,000 / $ 55,000 / $207,000

Intrepid Distributors / $110,000 / $ 20,000 / $130,000

b) The issuance of new contracts to the following companies in the upset limit amounts indicated for the period expiring September 3, 2004:

Company / P.O. Award Value

Wesco Distribution / $85,000

Van's Electronics Ltd. / $70,000

Richardson Electronics Canada Ltd. / $37,000

Electrowind/EIFCO / $11,000

MCI Service Parts Company / $1,100

Approved

28. Sheppard Subway - Bayview Station - Contract SH-55-J1 Change Directives SH-55-J1-151 & 203 Revision to Traffic Signals and Pressure Grouting

It is recommended that the Commission authorize Change Directive (CD) SH-55-J1-151 and 203 as follows:

a) CD #151 - Provision for Traffic Signals: an increase in authority of $49,632.70 from $113,067.00 to $162,699.70.

b) CD #203 - Pressure Grouting: an increase in authority of $30,828.77 from $77,705.00 to $108,533.77.

Approved

29. Wheel-Trans Accessible Distance Based Taxi Service Increase to Upset Limits

It is recommended that the Commission approve:

1. An increase in the Wheel-Trans accessible distance based taxi service contracted upset limit from $22,667,000 to $45,564,800 for the provision of licensed accessible taxi service for the balance of the contract period to June 30, 2005; and

2. The allocation of these additional funds to the six contracted service providers as outlined below:

• Increasing Able Atlantic Taxi Ltd. upset limit by $3,653,800 to $7,270,800;

• Increasing BeeLine Taxi Ltd. upset limit by $2,119,400 to $4,217,400;

• Increasing Dignity Transportation Inc. (Celebrity Taxi) upset limit by $5,578,200 to $11,100,200

• Increasing 935772 Ontario Ltd. (Royal Taxi) upset limit by $4,969,100 to $9,888,100

• Increasing Scarborough City Cab upset limit by $2,996,200 to $5,962,200

• Increasing 114569 Ontario Ltd. (Toronto Para Transit) upset limit by $3,581,100 to $7,126,100.

Approved

30. Transfer of Funds Between Engine Oil Contracts

It is recommended that the Commission approve the transfer of funds as follows:

a) Decrease the upset limit amount of the contract with Safety-Kleen Canada Inc. for the supply of 15W40 engine oil in drums (contract PC32995) by $350,000 from $455,000 to $105,000; and

b) Increase the upset limit amount of the contract with Safety-Kleen Canada Inc. for the supply of 15W40 engine oil in bulk (contract PC32994) by $350,000 from $510,000 to $860,000.

Approved

31. Summary of Authorized Expenditures for the Period March 2, 2003 to April 5, 2003

It is recommended that the Commission receive this report for information. It lists expenditures ($100,000 up to $200,000) for the period March 2, 2003 to April 5, 2003, which were approved by Senior Management.

Received

32. TTC's Charity Guidelines

It is recommended that the Commission approve the proposed changes to the TTC's Charity Event Guidelines as outlined in Appendix A.

Approved

33. 1998 & 2001 APTA Rail Safety Audits - Updates

It is recommended that the Commission:

i) Receive for information, the fourth update of the TTC management Actions for the 1998 APTA Rail Safety Audit and the second update of the TTC management Actions for the 2001 APTA Rail Safety Audit; and

ii) Forward this update to the Minister of Transportation, Province of Ontario and the Clerk of the City of Toronto for information.

Adopted

34. Express Service to Toronto Zoo

Commissioner Ashton Moved The Following:

1. That The Matter Be Referred To The Toronto Zoo And That The Zoo Be Requested To Explore Joint And Third Party Funding Sources To Support A Pilot Project For Service As Described In The Report; And

2. That Staff Be Requested To Review Zoo Signage On Both The 85 And 86 Bus Routes.

Commissioner Shiner Moved That The Recommendation Contained In The Report Be Struck Out And Replaced In Lieu Thereof With The Following:

"It Is Recommended That The Commission Approve The Implementation Of An Express Bus Service To The Toronto Zoo During The Summer Period, On A Trial Basis; And Further That Staff Meet With Representatives Of The Toronto Zoo And The Business Community To Discuss What Portion Of The Service Cost They Could Possibly Cover.

Vice-Chair Shaw Called For A Vote On Commissioner Ashton's Motion.

Commissioner Ashton, Commissioner Miller And Commissioner Flint Voted In Favour. Vice-Chair Shaw, Commissioner Shiner And Commissioner Kelly Were Opposed. The Motion Therefore Lost On A Tie Vote.

Vice-Chair Shaw Called For A Vote On Commissioner Shiner's Motion.

Commissioner Shiner, Vice-Chair Shaw, Commissioner Kelly And Commissioner Flint Voted In Favour. Commissioner Ashton And Commissioner Miller Were Opposed. The Motion Therefore Carried On A 4 - 2 Vote.

a) Summer Service to the Western Beaches

The Commission had before it a memorandum dated May 14, 2003 from R. Ducharme, Chief General Manager entitled, "Staff Response to Commission Inquiry - Summer Service to the Western Beaches."

Commissioner Miller Moved The Following:

1. That The Commission Re-Introduce Sunday And Holiday Service To The Western Beaches On The 80 Queensway Route During The Summer Of 2003, As A Pilot Project; And

2. That Staff Request The City Of Toronto To Widely Advertise The Use Of The TTC When They Undertake Their Promotion Of Summer Festivals And Charitable Events Taking Place In The Western Beaches Area.

The Commission Approved The Motion By Commissioner Miller.

b) Revised Motion in Support of Funding

for Environmental Assessments of Subway Extensions

The Commission had before it a memorandum dated May 14, 2003 from R. Ducharme, Chief General Manager entitled, "Staff Response to Commission Inquiry: Revised Motion in Support of Funding for Environmental Assessments of Subway Extensions."

The Commission Approved The Motion Contained In The Memorandum, As Listed Below:

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 In The Common Interests Of The City Of Toronto, The Region Of York, The City Of Vaughan, 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 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 One-Third Municipal Share Of The $3 Million Cost Of An Environmental Assessment Of The Extension Of The Spadina Subway Be Shared Equally By The City Of Toronto, The Regional Municipality Of York, And The City Of Vaughan, And That Each Of These Municipalities Agree To Contribute $333,000 As Their Share Of This Cost;

• The One-Third Municipal Share Of The $2 Million Cost Of An Environmental Assessment Of The Extension Of The Sheppard Subway Be Paid By The City Of Toronto, In The Amount Of $666,000;

• 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 City Of Vaughan, York University, And The Toronto Transit Commission; 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 City Of Vaughan, York University, And The Toronto Transit Commission.

C-1 D. Kaufman, General Manager, Transportation Services, City of Toronto responding to the Commission's request for the City to review and comment on the implications of the TTC's Ridership Growth Strategy report.

Commissioner Flint Moved That The Commission Receive The Communication And Accept The City Staff's Invitation To Work With The TTC To Establish Cost Effective Priorities And Solutions, Especially As It Pertains To The Four Bullets At The Bottom Of Page 2 Which Are Matters Of Concern Identified By The City.

The Commission Approved The Motion By Commissioner Flint.

a) Re-Routing of Service -  Dragon Fest and Downtown China Festival

Commissioner Ashton Moved That Staff Be Requested To Refine The Cost Figures For The Re-Routing Of Services Through Discussions With Representatives Of Dragon Fest And The Downtown China Festival; And Further That The Chair Of The TTC Table A Resolution At The City Council Meeting Of May 21, 2003, Requesting The City To Cover The Cost Of The TTC'S Lost Service Revenue.

The Commission Approved The Motion By Commissioner Ashton.

b) Committee of the Whole Resolution

The Commission Approved A Resolution By Vice-Chair Shaw To Meet As The Committee Of The Whole On Wednesday, June 18, 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 2:30 p.m.

Nil