Board Meeting - January 21, 2004

J. Mihevc (Vice-Chair), B. Ashton, D. Shiner, P. Li Preti, A. Giambrone, S. Bussin and Mayor D. Miller (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 F. Stanois (Coordinator - Secretariat Services) were present.

Vice-Chair Mihevc was in the Chair.

Nil

Commissioner Li Preti Moved That The Commission Approve The Minutes From Meeting No. 1837, And That The Chair And General Secretary Be Authorized To Sign The Same.

The Motion By Commissioner Li Preti Carried.

Nil

Nil

a) Report Nos. 2, 3 & 4, 2004 TTC Operating

Budget 2004 Wheel-Trans Operating Budget &

2004-2008 Capital Program and 10-Year Forecast

Steve Munro

Hamish Wilson
(Submitted brief)

Gord Perks

The Commission Received The Deputations. (See Report Nos. 2, 3 & 4 For Minutes)

Nil

1. Presentations to Outgoing Advisory Committee on Accessible Transportation (ACAT) Members

The Commission had before it a memorandum dated January 21, 2004 from R. Ducharme, Chief General Manager entitled, "Presentations to Outgoing Advisory Committee on Accessible Transportation (ACAT) Members."

Vice-Chair Mihevc advised that the following individuals had recently retired from the Advisory Committee on Accessible Transportation upon completion of their term as of December 31, 2003:

Carol Anne Monet (Chair)

Ron Stevenson (not present)

Leandre Casselman (not present)

Vice-Chair Mihevc also noted the following individuals who had resigned from the Committee in 2003 as a result of not being able to continue with their term of membership:

William Hoffstetter

Lorna Powers (not present)

Lara Haines-Love (not present)

On behalf of the Commission, Vice-Chair Mihevc thanked the above individuals for their contributions, and then presented Ms. Monet and Mr. Hoffstetter with a plaque in recognition of their time, dedication and commitment to the Committee.

2. 2004 TTC Operating Budget

The Commission had before it a letter dated December 3, 2003 from V. Rodo, General Secretary, TTC to U. Watkiss, City Clerk, City of Toronto advising of action taken by the previous Commission at its meeting on November 19, 2003 concerning the 2004 TTC Operating Budget.
V. Rodo, General Manager - Executive & General Secretary also gave an overhead slide presentation with respect to this matter.
After Receiving The Presentation Concerning This Matter, The Commission Approved The 2004 TTC Operating Budget, As Follows:

2004 TTC Operating Budget / $Millions / 2003 2004

Budget / Budget / Change

Revenues:

Operating: 710 / 709 / (1)

Retained Earnings: 17 / (17)

727 / 709 / (18)

Expenses: 909 / 939 / 30

Subsidy 182 / 182 / 
Shortfall: - / 48 / 48

Commissioner Shiner Moved The Following Motions:

1. That The Commission Request The Mayor To Continue Discussions With The Provincial And Federal Governments Regarding Provincial And Federal Funding For The TTC In 2004, Including A Share Of The Gas Tax.

2. That The Commission Defer Consideration Of A Fare Increase To The April Meeting Of The Commission Or Sooner At The Request Of The Mayor And TTC Chair.

The Motions By Commissioner Shiner Carried.

Commissioner Li Preti Moved That Staff Be Requested To Report Back At The Next Meeting On The Different Options Available To Appeal Property Taxes.

The Motion By Commissioner Li Preti Carried.

3. 2004 Wheel-Trans Operating Budget

The Commission had before it a letter dated November 21, 2003 from V. Rodo, General Secretary, TTC to U. Watkiss, City Clerk, City of Toronto advising of action taken by the previous Commission at its meeting on November 19, 2003 concerning the 2004 Wheel-Trans Operating Budget.

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

After Receiving The Presentation, Commissioner Shiner Moved The Following:

1. That The 30-Minute Scheduling Window Not Be Implemented As Planned And That The 2004 Wheel-Trans Operating Budget Submission Be Increased From $50.1 Million To $50.6 Million To Accommodate This Change.

2. That Staff Be Requested To Report Back On Other Possible Ways Of Changing The Wheel-Trans Booking System.

The Motions By Commissioner Shiner Carried.

The Commission Approved The 2004 Wheel-Trans Operating Budget, As Amended.

4. 2004-2008 Capital Program and 10-Year Capital Forecast

The Commission had before it a letter dated November 21, 2003 from V. Rodo, General Secretary, TTC to U. Watkiss, City Clerk, City of Toronto advising of action taken by the previous Commission at its meeting on November 19, 2003 concerning the 2004-2008 Capital Program and 10-Year Capital Forecast.

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

After Receiving The Presentation, Vice-Chair Mihevc Moved That The Commission Direct Staff To Include In The 2004 Purchase Order For New Buses An Option That Includes The New Buses Necessary To Achieve The Goals Of The Ridership Growth Strategy, Specifically To Add $71.0 Million For 100 Buses In 2006; And Further That Staff Report Back On Expectations Of Provincial And Federal Funding In Support Of The Ridership Growth Strategy.

The Motion By Vice-Chair Mihevc Carried.

The Commission Approved The 2004-2008 Capital Program And 10-Year Capital Forecast, As Amended.

Commissioner Giambrone Moved That TTC Staff Be Directed To Report Back To The Commission Within Three Months On The Feasibility And Rationale For Constructing TTC Buses In-House, Including The Long And Short Term Cost Implications, Technical Requirements Including Engineering, Design, Construction, Staffing, Facilities, Existing Resources, Operating And Capital Expenditures, Start-Up Costs, Estimated Time To Ramp Up The Program, Along With Any Other Relevant Factors.

The Motion By Commissioner Giambrone Carried.

5. Chief General Manager's Report - Period 11 November 2 to November 29, 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 November 2 to November 29, 2003, noting that:

• 2003 TTC Operating Budget

Ridership was 405.4 million in 2003, about 6.6 million less than budget. The corresponding revenue shortfall ($11 million) will almost completely eliminate the Contribution to Capital.

• 2003 Wheel-Trans Operating Budget

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

• 2003-2007 Capital Program

the year-end cash flow is projected to be $77.8 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

6. Procurement Authorization Kennedy Station

Commuter Parking Lot Expansion Phase 2 Contract F3-21
It is recommended that the Commission authorize the acceptance of the tender submitted by Empire Paving Limited (Empire) in the amount of $589,982.70, Contract F3-21 - Kennedy Station Commuter Parking Lot Expansion Phase 2.

Approved

7. Procurement Authorization Roncesvalles and

Russell Carhouses Roof Rehabilitation Contract G35-26

It is recommended the Commission authorize acceptance of the tender submitted by Trio Roofing Systems Inc. (Trio Roofing) in the amount of $2,889,000.00 for Contract G35-26 Roncesvalles and Russell Carhouses - Roof Rehabilitation.

Approved

8. Procurement Authorization Park

Hyatt - Structural Repairs Contract D1-1

It is recommended that the Commission authorize the acceptance of the tender submitted by Torbridge Construction Ltd. in the amount of $489,000.00 for Contract D1-1 Park Hyatt - Structural Repairs.

Approved

9. Procurement Authorization - Business Banking Services

It is recommended that the Commission approve the award of a contract to the Canadian Imperial Bank of Commerce (CIBC) in the upset limit amount of $3,100,000 for the provision of banking services for the five year period from April 1, 2004 to March 31, 2009.

Approved

10. Procurement Authorization Contract

Amendment No. 1 Two Prototype Static Inverters

It is recommended that the Commission authorize the following:

a) Contract Amendment No. 1 in the amount of $139,600.00 to Intelligent Power Systems Limited for the supply of two additional prototype Static Inverters.

b) Funds in amount of $20,940.00 for GST and PST, to be self assessed by the Commission and paid to the Federal and Provincial Governments respectively.

c) Funds in the estimated amount of $17,000.00 to cover brokerage and freight charges, which will be paid by the Commission to the Commission's Customs broker.

The total authorized amount is $177,540.00

Approved

11. Purchase of Recaro Seat Parts

It is recommended that the Commission authorize for inventory, additional funds in the amount of $50,000 for the purchase order with Neoplan Canada Incorporated (Neopart) for the supply of Recaro seat parts resulting in a revised total upset limit of $619,000.

Approved

12. Purchase of 1000 MCM Cable

It is recommended that the Commission authorize:

1. The award, for inventory, of a contract to Texcan (Division of Sonepar Canada Inc.) for the supply of 15,500 meters of 1000 MCM Cable in the amount of $399,636.50 including applicable taxes; and

2. The award of a contract to Texcan (Division of Sonepar Canada Inc.) of $21,390 for the purpose of payment of reels at receipt and the credit of the same upon return to Texcan.

Approved

13. Purchase of Bombardier Parts

It is recommended that the Commission authorize the award of a contract to Bombardier Inc. (Bombardier) for the supply of parts for inventory for subway and streetcar vehicles in the upset limit amount of $6,600,000 for a three-year term commencing February 1, 2004.

Approved

14. Supply of Lubricants March 1, 2004 to February 28, 2007

It is recommended that the Commission approve the awarding of contracts for the supply of lubricants for a three-year period from March 1, 2004 to February 28, 2007 to:

1. Safety Kleen Canada Inc. for the supply of nine items in the upset limit of $3,260,000; and

2. Petro Canada Lubricants (Petro Canada) for the supply of one item in the upset limit of $435,000.

Approved

15. Summary of Authorized Expenditures for the Period November 2, 2003 to November 29, 2003

It is recommended that the Commission receive this report for information. It lists expenditures ($100,000 up to $200,000) for the period November 2, 2003 to November 29, 2003, which were approved by Senior Management.

Received

16. Appointment of Members to the Advisory Committee on Accessible Transportation

It is recommended that the Commission approve:

1. the appointment of six candidates (biographies attached) to the Advisory Committee on Accessible Transportation commencing January 2004; and

2. a revision to the Selection Committee provided for in the ACAT Terms of Reference to reflect staff representatives from the Commission, City of Toronto, and the Chair of ACAT.

Approved

The Commission also confirmed that Commissioner Ashton would continue to serve as the Commission's liaison with the Advisory Committee on Accessible Transportation.

17. 2004 Commission Meeting Schedule - March to December

After Reviewing The Options Available In The Report, Vice-Chair Mihevc Moved That The Commission Approve The Following Commission Meeting Dates For The Period March To December 2004:

• Wednesday, March 24, 2004
• Wednesday, April 14, 2004
• Wednesday, May 12, 2004
• Wednesday, June 16, 2004
• Wednesday, July 14, 2004
• Friday, September 10, 2004
• Wednesday, October 20, 2004
• Wednesday, November 17, 2004
• Wednesday, December 15, 2004

The Motion By Vice-Chair Mihevc Carried.

18. Bicknell Loop - Declare Surplus to TTC Needs

It is recommended that the Commission:

1. declare Bicknell Loop surplus to the needs of the Toronto Transit Commission.

2. approve the method of sale of the property, namely the transfer of Bicknell Loop, to the City of Toronto for a nominal sum in accordance with the Toronto Transit Commission's By-law Number 2 and the City of Toronto's Policy Governing Land Transactions Among ABCDs and Proceeds From Sale of Surplus City Owned Real Property for use by staff of Housing Shelter and Support for the development of affordable housing; and

3. authorize staff to execute the agreements necessary to convey the property to the City in a form satisfactory to the TTC's General Counsel.

Approved

Vice-Chair Mihevc Moved That Staff Report Back On The Applicability Of The City Of Toronto's Housing First Policy To TTC Owned Lands That Are Declared Surplus Or Involved In Any Kind Of Development Process.

The Motion By Vice-Chair Mihevc Carried.

19. Leadership and Professional Development Training Programs

It is recommended that the Commission approve the attendance at the programs listed below for the following employees:

• Glen Johnstone, Superintendent - Subway/SRT Track and Susan Reed-Tanaka, Acting Chief Project Manager - Construction to attend the Operations Leadership Program at Queen's Executive Centre in Kingston, Ontario from February 1 to 6; and

• John Cannon, Chief Information Officer to attend the Information Technology Program at the Queen's Executive Centre in Kingston, Ontario from February 15 to 20.

Approved

20. Travel Approval - Risk and Insurance

Management Society Conference & Exhibition

It is recommended that the Commission approve a travel request for Mr. Michael Harbinson, Corporate Insurance Administrator, of the Finance Department, to attend a 5-day Risk and Insurance Management Society Conference & Exhibition, in San Diego, California from April 18, 2004 to April 22, 2004.

Approved

Nil

C-1 Rachel Gottesman, January 19, 2004, forwarding recommendations to improve TTC financing.

The Commission Received The Communication For Information.

a) 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, February 25, 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.

The meeting adjourned at 3:45 p.m.

Nil