Board Meeting - January 12, 2011

Purpose: To consider the Toronto Transit Commission’s 2011 recommended operating (conventional and Wheel-Trans) and capital budgets.

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• Meeting No. 1927 - December 15, 2010

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1. Reports with Confidential Attachments (Committee of the Whole)

   NIL

2. Presentations
   • 2011 Operating Budget
   • 2011 Wheel-Trans Operating Budget
   • 2011 – 2015 Capital Program and 10 Year Forecast
3. Budget matters

   NIL

4. Procurement Authorizations

   NIL

5. Procurement Authorization Amendments

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6. Notice of Awards

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7. Service Matters

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8. Other Business

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9. New Business

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10. Correspondence

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A correspondence summary will be distributed at the meeting.

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K. Stintz (Chair), P. Milczyn (Vice-Chair), M. Augimeri, V. Crisanti, F. Di Giorgio, N. Kelly, D. Minnan-Wong, C. Palacio, and J. Parker (Commissioners), G. Webster (Chief General Manager), V. Rodo (General Manager – Executive & General Secretary), R. Cornacchia (General Manager – Operations), J. Sepulis (General Manager – Engineering & Construction), B. Leck (General Counsel - Legal), B. Ross (Director – Corporate Communications), M. Roche (Chief Financial Officer), M. Stambler, (Chief Service Planning Officer), K. Lee (Assistant General Secretary) and F. Stanois (Co-ordinator – Corporate Secretariat Services) were present.

K. Stintz was in the Chair.

B. Frost (General Superintendent - Wheel Trans) was present for Item 2.

Chair Stintz moved that the Commission waive section 13a of the procedural bylaw relating to notice provisions for public presentations to permit deputations on items no. 1 and no. 3.

The motion by Chair Stintz carried on a two thirds vote of the members in attendance.

a) 2011 Operating Budget
 
Councillor Joe Mihevc
City of Toronto

Councillor Kristyn Wong-Tam
City of Toronto
(Submitted brief)

Councillor Sarah Doucette
City of Toronto
(Submitted brief)

Councillor Gloria Lindsay Luby
City of Toronto
(Submitted brief)

Councillor Adam Vaughan
City of Toronto

Emily Green (not present)
(Submitted brief)

Jamie Kirkpatrick, Campaigner
Toronto Environmental Alliance

John Cartwright, President
Toronto & York Labour Council

Michael Rosenberg

Jonah Schein

Susan Gapka

Roger Brook

Steve Munro

Danielle Sandhu
University of Toronto Student Union &
Canadian Federation of Students

Walied Khogali

Brian Boehlert

Andrew Crawford

The Commission received the deputations for information.
(see item no. 1 for minute).

b) 2011 – 2015 Capital Program and 10 Year Forecast

Councillor Gord Perks
City of Toronto

Councillor Joe Mihevc
City of Toronto

The Commission received the deputations for information.
(see item no. 3 for minute).

NIL

1. Reports with Confidential Attachments (Committee of the Whole)

    NIL

2. Presentations

   NIL

3. Budget Matters

   NIL

4. Procurement Authorizations

   NIL

5. Procurement Authorization Amendments

   NIL

6. Notice of Awards

   NIL

7. Service Matters

   NIL

8. Other Business

   NIL

9. New Business

   NIL

10. Correspondence

C1 - Community letters submitted by Commissioner Augimeri concerning proposed changes to the 101 Parc Downsview Park route.

The commission received the communications for information.
(See report no. 1 for minute).

C2 - Councillor Frances Nunziata concerning proposed changes to the 32D Eglinton West and 59 Maple Leaf routes.

The commission received the communication for information.
(See report no. 1 for minute).

The meeting recessed at 1:00 p.m. and re-convened at 2:10 p.m.

The meeting adjourned at 3:45 p.m.

1. 2011 Operating Budget

V. Rodo, General Manager – Executive & General Secretary, provided an overhead presentation on this item. 

The Commission received the presentation for information.

Commissioner Palacio moved that the proposed elimination of service at off-peak times on the 48 low-ridership routes be deferred to the February 2, 2011 Commission Meeting and TTC management staff be requested to find other transportation alternatives.

Chair Stintz called for a recorded vote on the motion.

In favour:  Vice-Chair Milczyn, Commissioner Augimeri, Commissioner Crisanti, Commissioner Di Giorgio and Commissioner Palacio.

Opposed:  Commissioner Kelly and Commissioner Minnan-Wong.

Not present during the vote:  Commissioner Parker.

The motion carried on a vote of 5 to 2.

Chair Stintz moved that recommendation no. 5 in the staff report be amended to include the following at the end of the recommendation:

“..and inflationary cost increases in the City’s subsidy and inflationary cost increases in fares, and that the commission consider the establishment of a fare stabilization fund that would be funded from ttc operating surpluses” such that recommendation #5 now reads as follows:

“Direct staff to develop a multi-year plan, in consultation with City of Toronto staff, to establish a fare/subsidy strategy taking into consideration appropriate targets for ridership levels, service initiatives, revenue/cost ratios and inflationary cost increases in the city’s subsidy and inflationary cost increases in fares, and that the Commission consider the establishment of a fare stabilization fund that would be funded from TTC operating surpluses”.

The amendment motion by Chair Stintz carried.

Chair Stintz moved that the recommendations in the staff report be approved, as amended.

The motion by Chair Stintz carried.

2. 2011 Wheel-Trans Operating Budget

B. Frost, General Superintendent – Wheel Trans, provided an overhead presentation on this item.

The commission received the presentation for information and approved the recommendation in the staff report, as follows:

“It is recommended that the commission:

1.  Approve the 2011 Wheel-Trans Operating Budget (presentation attached) as described in this report, and

2.   Note that the 2011 Wheel Trans Operating Budget includes an increased subsidy requirement of $8,300k as summarized below:

Expenditures / $96,500
Revenues / (5,500)
Subsidy required / $91,000
2010 approved City operating subsidy / 82,700

Additional subsidy required / $ 8,300

 3. Note that the Wheel-Trans service plan encompasses the following key factors:

• Eligibility criteria and application process remain unchanged
• Active registrant base increasing by 12% to 44,800
• Trips increasing to 2.9 million
• Accommodating 98% of trips
• Further integration with the conventional transit system
• Community bus routes remain at five (5)
• Implementing scheduling enhancements
• Operating budget workforce increasing by 2 to a year-end complement of 531
• The service area does not increase beyond the City of Toronto boundaries
• No impact from AODA transportation standards until 2012

4. Forward this report to the City of Toronto requesting approval of the required 2011 operating subsidy for Wheel-Trans, and

5.  Forward this report to the TTC’s advisory Committee on Accessible Transportation (ACAT) for information, and

6.  Forward this report to the Ontario Minister of Transportation, the Ontario Minister of Energy and Infrastructure, and the Ontario Minister of Finance, for information, and

7. Forward this report to the Federal Minister of Transport, Infrastructure, and Communities, for Information”.

3.  2011 - 2015 Capital Program and 10 Year Capital Forecast

V. Rodo, General Manager - Executive & General Secretary, provided an overhead presentation on this item. 

The Commission received the presentation for information and approved the recommendation in the staff report, as follows:

“It is recommended that the commission:

1. Approve the following as set out in the detailed TTC 2011-2015 capital program blue books:

(A) The 2011 Capital Budget in the amount of $904.5 million noting that identified capital funding sources are sufficient to fund the full year’s capital budget request;

(b) The 2011-2020 TTC capital budget noting that for the 10-year period capital expenditures needed to maintain the existing transit system in a state-of-good-repair exceed the currently identified capital funding sources by about $2.3 billion;

(c)  Note that the 10-year capital funding shortfall is a continuation of the long term pattern of insufficient long-term capital funding for the TTC’s capital needs.  Over recent times, each capital budget process shows sufficient funding in the short-term and a significant lack of identified funding in the mid to long term.  Also contained in this report is a series of possible funding package requests for the provincial and federal governments that if funded would in large measure fill in this 10-year shortfall;

(D) Forward this report to the City of Toronto as the TTC’s formal capital budget request for approval by city council

(E)  The budget for the Toronto-York Spadina Subway Extension with an estimated final cost of $2.634 billion, including $524.9 million in 2011 and $2.314 billion for the years 2011-2015;

2. Confirm support for the strategic funding packages outlined in this report, and direct staff, in consultation with the City of Toronto, to prepare appropriate requests to the Province of Ontario, Metrolinx, and the Government of Canada in pursuit of funds for the TTC’s base and capital expansion needs as outlined in this report”.

Chair Stintz moved that staff report back on the TTC’s previous direction to include in the 2011 Capital Budget the cost to undertake the detailed design and tendering work for a sound barrier wall at Allen Road and Eglinton Avenue West, and to include the on-site work in the 2012 Capital Budget. 

The motion by Chair Stintz carried.

Commissioner Augimeri moved that staff provide a report on how the green energy act affects proposed facilities and upgrades to existing facilities.

The motion by Commissioner Augimeri carried.

Commissioners approved the TTC’s 2011 Operating, Capital and Wheel-Trans budgets at a special meeting on Jan. 12. Commissioners voted to cancel a 10-cent fare increase, as well as defer a decision to eliminate service at off-peak times on 48 low-ridership routes until its next meeting on Feb. 2. The TTC budgets will be forwarded to the City for approval. Here’s what was approved:

2011 TTC Operating Budget

Commissioners approved expenses totalling $1.43 billion, with an operating subsidy of $429 million. The TTC is projecting a ridership level of 487 million in 2011 – 10 million more riders than 2010’s record total. The TTC maintains a cost-recovery rate at 70 per cent, one of the highest in North America.

2011 TTC Capital Budget

Commissioners approved a total of $904.5 million for the 2011 portion of the 2011-2015 Base Capital Program. The budget provides for state-of-good-repair projects (90 per cent of the total), legislative requirements, capacity enhancements, station and facility improvements and expansion initiatives.
TTC staff stated that capital funding for 2011 is secure. Some deferrals will be required to balance the 2012 budget. However, the TTC 10-Year Capital Program is facing a $2.3-billion shortfall, highlighting the need for predictable, long-term funding to keep the existing system in a state of good repair.

2011 Wheel-Trans Budget

Commissioners approved the 2011 Wheel-Trans Operating Budget worth $96.5 million to accommodate an increase in ridership of more than seven per cent to 2.9 million annual trips.