Board Meeting - November 20, 2013

K. Stintz (Chair), M. Adamson (Vice-Chair), M. Augimeri, R. Cho, J. Colle, G. De Baeremaeker and A. Virmani (Board Members), A. Byford (Chief Executive Officer), S. Ghaly (Chief Capital Officer), V. Rodo (Chief Financial & Administration Officer), G. Shortt (Acting Chief Operating Officer), C. Upfold (Acting Chief Service Officer), B. Ross (Executive Director of Corporate Communications), K. Lee (Head of Commission Services) and D. McDonald (Co-ordinator – Corporate Secretariat Services) were present.

K. Stintz was in the Chair.

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a) 2014 TTC and Wheel-Trans Operating Budgets

Eleanor Batchelder

Marco Covi
TTCriders

Corey Glasberg
TTCriders

Linsey MacPhee
Toronto Drop-in Network

David O’Rourke
The Board received the deputations for information.
(See Item 3(a) for minute)

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Nil

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

NIL

2. Presentations

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3. Budget Matters

a) 2014 TTC and Wheel-Trans Operating Budgets
V. Rodo, Chief Financial & Administration Officer delivered a PowerPoint presentation on this item.

The Board received the presentation for information.

Commissioner Colle moved the following amendments to the recommendation in the staff report:

i) That the first option in Part 3 of the recommendation be struck out;

ii) That Part 4 be amended to include the words “requesting that the City of Toronto return their operating subsidy per rider to the TTC to 2010 levels or higher” after the words “City Budget process”;

iii) That Part 6 be amended to include the words “requesting that the Provincial government return transit operating funding subsidies to historic levels” after the words “Ontario Minister of Transportation”;

iv) That the following be added as Part 7 to the recommendation:
“Affirm the TTC’s support for the development of a National Transit Strategy by the Federal Government, and forward this report to the Federal Minister of Transport”.

v) That the following be added as Part 8 to the recommendation:

“Direct the Chair and senior staff to meet with representatives of “TTC Riders” to discuss and consider potential joint advocacy efforts for sustainable and consistent operating subsidies from senior levels of government”;

so such recommendation now reads as follows:

“It is recommended that the Commission:

1. approve the 2014 TTC Operating Budget as detailed in this report and as summarized in Appendix A;

2. approve the 2014 Wheel-Trans Operating Budget as detailed in this report (refer to page 21) and as summarized in Appendix B;

3. approve, effective January 1, 2014, a 5 cent increase in the price of a single adult token and a proportionate increase in all other fares as set out in Appendix C, and
- a one-trip increase in the price of the Adult Metropass (refer to Appendix E);

4. forward this report to the City of Toronto for submission into the City Budget process requesting that the City of Toronto return their operating subsidy per rider to the TTC to 2010 levels or higher and for confirmation of the 2014 operating subsidy levels;

5. forward this report to the Metrolinx Board;

6. forward this report to the Ontario Minister of Transportation requesting that the Provincial government return transit operating funding subsidies to historic levels;

7. affirm the TTC’s support for the development of a National Transit Strategy by the Federal Government, and forward this report to the Federal Minister of Transport; and

8. direct the Chair and senior staff to meet with representatives of “TTC Riders” to discuss and consider potential joint advocacy efforts for sustainable and consistent operating subsidies from senior levels of government”.

Chair Stintz requested that each part of the amended recommendation be voted on separately.

Parts 1, 2, 4, 5, 6, 7 and 8 of the amended recommendation carried unanimously on votes of 7 to 0.

Part 3 of the amended recommendation carried on a vote of 5 to 2.

In favour: Chair Stintz, Vice-Chair Adamson, Commissioners Cho, Colle and De Baeremaeker.

Opposed: Commissioners Augimeri and Virmani.

Chair Stintz moved adoption of the item, as amended.

The motion by Chair Stintz carried.

b) 2014-2023 TTC Capital Budget

V. Rodo, Chief Financial & Administration Officer delivered a PowerPoint presentation on this item.

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

“It is recommended that the Board:

1. Approve the 2014-2023 TTC Capital Budget (including the Toronto-York Spadina Subway Extension and Scarborough Subway Extension) as summarized in Appendix A and detailed in this report and contained on Appendix B (The Blue Pages);

2. Support the creation of a special task force, comprised of the TTC Chair, the TTC CEO, the TTC CFAO, the City Manager and the City CFO, to seek and secure funding for the list of “unfunded TTC Capital Projects” contained in Exhibit 5 of this report;

3. Request the City of Toronto to amend section 4-A-1(c) of Chapter 279 of TTC Financial Control By-law relating to the carry forward of unspent funds within Capital Programs which will exempt TTC from the one year limit rule.

4. Forward this report to the City of Toronto for submission to the City’s budget process;

5. Forward this report to the Metrolinx Board;

6. Forward this report to the Ontario Minister of Transportation and to the Federal Minister of Transportation; and,

7. Request the Federal, Provincial and Municipal governments to provide incremental funding for the currently Unfunded Projects shown on Appendix D”.

The Board also adopted the following motion moved by Commissioner Augimeri:

That TTC Management, in their continued talks with the Provincial Government, suggest that future capital expansion needs of the TTC and regional transit initiatives can be funded by a return to pre-2009 provincial corporate income tax levels.

Chair Stintz moved adoption of the item, as amended.

The motion by Chair Stintz carried.

Commissioner Colle was not present for this item.

ts for Fare Discounts

The Board deferred this item.

4. Procurement Authorizations

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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

C1 – Mary T. Hynes regarding the 2014 TTC and Wheel-Trans Operating Budgets.
 
The Board received the communication for information.
 
(See Item 3(a) for minute).
 
C2- TTC Commissioner Alan Heisey regarding the 2014 TTC and Wheel-Trans Operating Budgets.
 
The Board received the communication for information.
(See Item 3(a) for minute).

 
The meeting adjourned at 3:30 p.m.

NIl

The Board approved the TTC’s 2014 Operating, Wheel-Trans and Capital Budgets. These budgets will be forwarded to the City of Toronto for submission to the City Budget process and for confirmation of the 2014 operating subsidy level. Here is what was approved:

Board Members approved expenses totalling $1.60 billion, with an assumed flat-lined operating subsidy of $411 million. To balance its budget, the TTC would need a total subsidy of $428.1 million. The TTC is projecting a record ridership level of 540 million in 2014 (2.3 per cent higher than the 528 million budgeted for 2013), while maintaining its cost-recovery rate at 73 per cent, one of the highest in North America. Based on an already agreed upon City subsidy of $428.1 million, the operating budget is still facing a $6-million shortfall.

Commissioners approved in principle a five-cent increase in the price of a single Adult token, effective on Jan. 1, 2014, and a proportionate increase to all other fares, plus a one-trip increase in the price of the Adult Metropass. The fare increase is in line with the rate of inflation. Cash fares remain unchanged.

Board Members also approved the following motions presented by Commissioner Josh Colle:

• Request that the City of Toronto return their operating subsidy-per-rider to the TTC to 2010 levels or higher (93 cents per rider).
• Request that the provincial government return transit operating funding subsidies to historic levels.
• Affirm the TTC’s support for the development of a National Transit Strategy by the federal government, and forward this report to the Federal Minister of Transport.
• Direct the Chair and senior staff to meet with representatives of TTCriders (public transit advocacy group) to discuss and consider potential joint advocacy efforts for sustainable and consistent operating subsidies from senior levels of government.

Board Members approved a total of $1.17 billion for the 2014 portion of the 2014-2023 Capital Budget. The budget continues to provide for state-of-good-repair projects and legislative requirements (95 per cent of the total in the 10-year envelope), station and facility improvements and expansion initiatives (excludes new transit lines). The 2014-2023 Capital Budget is worth just over $9 billion.

Based on current funding assumptions, there is sufficient funding available to cover 2014 budgeted expenditures. However, the 10-year envelope for infrastructure projects and vehicle procurement and overhauls, is facing a $2.7-billion shortfall that must be addressed.

The Board also approved the creation of a special task force to seek and secure funding for the list of unfunded TTC capital projects. The task force includes: TTC’s Chair, TTC’s CEO, TTC’s Chief Financial and Administration Officer, City Manager and City’s Chief Financial Officer.

Board Members approved the 2014 Wheel-Trans Operating Budget worth $106.4 million to maintain a customer accommodated rate at 99 per cent, and to continue 24-hour service as mandated by the Accessibility for Ontarians Disability Act Transportation Standards. 2014 ridership is projected at an all-time-high 3.1 million trips.