Board Meeting - September 22, 2003

H. Moscoe (Chair), S. Shaw (Vice-Chair), B. Ashton, D. Miller, D. Minnan-Wong, D. Shiner, P. Li Preti and N. Kelly (Commissioners), R. Ducharme (Chief General Manager), V. Rodo (General Manager - Executive & General Secretary), G. Webster (General Manager – Operations), T. Middlebrook (Chief Engineer - Engineering), 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), W. Buffett (Assistant General Secretary) and F. Stanois (Coordinator - Secretariat Services) were present.

In view of the absence of the Chair and Vice-Chair, the meeting commenced with Commissioner Ashton in the Chair.

At approximately 9:20 a.m., Vice-Chair Shaw assumed the Chair.

Nil

Commissioner Shiner Moved That The Commission Approve The Minutes From Meeting No. 1831, And That The Chair And General Secretary Be Authorized To Sign The Same.

The Motion By Commissioner Shiner Carried.

Nil

Nil

Nil

CC-1 The Commission had before it a communication dated September 8, 2003 from Commissioner Flint confirming her resignation as a Toronto City Councillor, effective immediately.

The Commission Received The Communication And Requested The Chair To Send A Letter Of Thanks To Commissioner Flint For Her Valued Contributions To The Commission.

1. Procurement Authorization - Demonstration of Prototype Pass Vending Machine (PVM)

It is recommended that the Commission approve the award of a contract to IBM Canada Ltd. (IBM), in the amount of $1,497,835.01, for the design and development, supply and rollout of ten Metropass vending machines (PVM).

Approved

2. Vehicle Work Order

The Commission Deferred Consideration Of This Matter Until Its Next Meeting.

3. Chief General Manager's Report - Period 7 July 6 to August 2, 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 July 6 to August 2, 2003, noting that:

• 2003 TTC Operating Budget

it is now anticipated that ridership by year-end will be some 9 million rides under budget, due to the impact in the Toronto area of the recent Hydro blackout and the earlier Severe Acute Respiratory Syndrome (SARS) outbreak; total revenues are now expected to be $14 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, the blackout 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 $44.9 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 - Purchase Order Amendment - CIBC Banking Services

It is recommended that the Commission approve a purchase order amendment in the amount of $210,000 for the provision of banking services by the Canadian Imperial Bank of Commerce (CIBC), increasing the total contract value to $4,010,000 for the period April 1, 1999 to March 31, 2004.

Approved

5. Procurement Authorization - Supply of Miscellaneous Plumbing Supplies

It is recommended that the Commission approve the issuance of a purchase order to Crane Supply for the supply of miscellaneous plumbing supplies for the three year period, November 1, 2003 to October 31, 2006 in the total upset limit of $1,600,000.

Approved

6. Procurement Authorization - Supply of Rock Salt for the 2003 - 2005 Winter Seasons

It is recommended that the Commission approve the issuance of a purchase order to the Canadian Salt Company Limited, for the supply of rock salt for the period of October 15, 2003 to April 30, 2005 in the total upset limit of $510,000.00.

Approved

7. Procurement Authorization - Supply of Chemical Grouting Material

It is recommended that the Commission approve acceptance of the proposal submitted by Wallace Construction Specialists Inc. for Option 1, in the upset limit of $3,376,751.90 for the contract period September 25, 2003 to December 31, 2005, for the supply of chemical grouting material for the Tunnel and Station Leak Remediation Program.

Approved

8. Procurement Authorization for the Supply of Polyurethane and Acrylate Chemical Grout Materials

It is recommended that the Commission approve the issuance of a single source Purchase Order to Specton Construction Products Ltd. (Specton), in the upset limit amount of $1,794,862.50, for the supply of polyurethane and acrylate chemical grouting materials, for the period September 18, 2003 to December 31, 2005 to facilitate the Tunnel/Station Leak Repair Program.

Approved

9. Procurement Authorization - Installation and Removal of Surface Traction Power Cables for the Streetcar Overhead System RFP No. P31PJ03824

It is recommended that the Commission authorize awarding a two-year contract for the installation and removal of surface traction power cables for the Streetcar Overhead System to Black & McDonald Limited, in the upset limit amount of $400,000.00.

Approved

10. Procurement Authorization - Purchase Order Amendment for the Maintenance of Traction Power Cables

It is recommended that the Commission authorize the issuance of Contract Amendment No. 2 for service contract C31V8845 with Black & McDonald in the amount of $450,000.00 to allow for the continued maintenance, emergency repair and new construction of the Commission's traction power system, bringing the total contract authorization to $1,495,000.00.

Approved

11. Procurement Authorization - Armed Guard Services

It is recommended that the Commission authorize the award of a contract to Intercon Security Limited in the upset limit amount of $950,000 for the provision of armed guard services for a three (3) year period commencing October 1, 2003 to September 30, 2006.

Approved

12. Purchase Order Amendment Authority

- Asbestos Abatement Program Consultants

It is recommended that the Commission authorize unbudgeted expenditures in the amount of $305,000 and award contract amendments to Jacques Whitford Environment Limited C31PF02744, Pinchin Environmental Limited C31PF02745 and to Decommissioning Consulting Services Limited C31PF02746 in the respective amounts of $135,000, $60,000 and $110,000.

Approved

13. Purchase of Fasteners

It is recommended that the Commission approve for inventory, additional funds to the following companies in the amounts as follows:

- R.N. Colville & Son Incorporated for $115,000 resulting in a revised upset limit of $230,000.

- Niagara Fasteners for $41,000 resulting in a revised upset limit of $82,000.

- Cardinal Fasteners for $35,000 resulting in a revised upset limit of $70,000.

- Cook Fasteners (formerly Bell Fasteners) for $19,000 resulting in a revised upset limit of $38,000.

- H. Paulin Company Limited for $9,000 resulting in a revised upset limit of $18,000.

- Spaenaur Incorporated for $8,000 resulting in a revised upset limit of $16,000.

Approved

14. Sale and Removal of Various Mixed Metals for a One Year Period Commencing December 1, 2003 to November 30, 2004

It is recommended that the Commission authorize the award of a one year contract for the period of December 1, 2003 to November 30, 2004 for the sale of various scrap metals to the following two companies:

- Inland Iron and Metal for Groups 1 & 2

- ACS Iron and Metal for Groups 3 & 4.

Approved

15. Summary of Authorized Expenditures for the Period July 6, 2003 to August 2, 2003

It is recommended that the Commission receive this report for information. It lists expenditures ($100,000 up to $200,000) for the period July 6, 2003 to August 2, 2003, which were approved by Senior Management.

Received

16. Student Fare Policy Re Cross Boundary Travel

The Commission Deferred Consideration Of This Matter Until Its Next Meeting.

17. Kennedy Station - Proposed GO Transit Station

It is recommended that the Commission approve:

1. the execution of an Entrance Connection Agreement between the TTC and the Greater Toronto Transit Authority under the general terms and conditions set out in this report, including any other agreement that may be necessary to facilitate the construction and operation of the proposed Kennedy GO Transit Station; and

2. appropriate staff be authorized to take the necessary action to give effect to the foregoing recommendation.

Approved

18. Free TTC Service on Smog Alert Days

It is recommended that the Commission:

1. Receive this report for information, noting that the TTC should not support the provision of free TTC service on smog alert days in Toronto because:

• the best way to improve Toronto's environment and to reduce the occurrence and severity of smog alerts in Toronto is by encouraging a long-term, sustainable, overall shift in travel from car to transit, through the implementation of the TTC's Ridership Growth Strategy, which was endorsed by the Commission in March, 2003;

• the Ridership Growth Strategy is a cost-effective way of making transit more attractive and more affordable everyday for all residents, while the provision of free TTC service on smog days is a "novelty" or "one-off" approach which doesn't address the root cause of smog, which is the high level of use of private vehicles;

• the provision of free TTC service on smog days would not significantly improve the environment on such days because TTC service levels are budgeted for, and set to accommodate only projected "normal" volumes of transit customers; the TTC does not have the spare capacity, or the surplus vehicles or workforce to provide the extra capacity which would be required to accommodate large increases in passenger volumes;

• the provision of free TTC service on smog days would result in a loss of revenue of approximately $2 million per day; for example, if free transit had been provided on the 12 smog days declared in Toronto so far this year, the revenue losses would have been $24 million;

• if additional funding of this magnitude is available to improve air quality through investing in transit, this funding should be directed towards implementation of the TTC's Ridership Growth Strategy; and

2. Forward this report to the City of Toronto, the Toronto Clean Air Alliance, the Toronto Environmental Alliance, Pollution Probe, the Central Ontario Smart Growth Panel, the Ontario Ministry of the Environment, the Ontario Ministry of Transportation, and Environment Canada.

Adopted

Nil

C-1 M. Lastman, Mayor, City of Toronto dated August 9, 2003 thanking the TTC for helping to make the Molson Canadian Rocks Toronto Concert a great success

The Commission Received The Communication For Information.

C-2 B. Schmied, Executive Director, Ontario Community Transportation Association and M. Roschlau, President and Chief Executive Officer, Canadian Urban Transit Association to The Honourable Brad Clark, Minister of Labour dated September 5, 2003 requesting an exemption for public transit systems across Ontario from provisions contained in the Employment Standards Act, 2000 (ESA) concerning Hours of Work and Eating Periods.

The Commission Deferred Consideration Of This Communication Until Its Next Meeting.

a) Post Implementation Review - Sheppard Subway Related Service Changes

Commissioner Kelly Moved That Staff Be Requested To Restore The 85g Sheppard Service To Facilitate Improved Local Service To The Seniors' Residences Located Along Sheppard Avenue.

Commissioner Shiner Moved That Commissioner Kelly's Motion Be Deferred Pending A Report Being Brought Forward By Staff That Provides A Post Implementation Review Of All Routes Affected By The Opening Of The Sheppard Subway, And Further That Staff Expedite The Preparation Of This Report For Consideration At The Next Meeting.

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

The Motion By Commissioner Shiner Carried.

b) Committee of the Whole Resolution

The Commission Approved A Resolution By Chair Moscoe To Meet As The Committee Of The Whole At 11:00 a.m. On Wednesday, October 22, 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 9:30 a.m.

Nil