Board Meeting - May 28, 2014

Meeting to commence at 10 a.m. to deal with Declarations of Interest and a resolution to conduct a portion of the meeting in the absence of the public. The Commission will immediately meet in the absence of the public (referred to as “Committee of the Whole”) to deal with confidential items and will reconvene the portion of the meeting open to the public at approximately 1 p.m. Members of the public who wish to attend the public portion should attend at 1 p.m. Members of the public who have registered to speak should attend at 2 p.m. or earlier.

Resolution to conduct a portion of the meeting in the absence of the public (Committee of the Whole) in accordance with Section 29 of the TTC By-law to Govern Commission Proceedings and Section 190 of the City of Toronto Ac

• Procurement Authorization – Supply of Fare Media Cards for a 2-Year Term (This report involves the security of property belonging to the TTC)
• Large Litigation Matters (This report contains advice or recommendations that are subject to Solicitor-Client Privilege)
• Royal York Station (Easier Access Phase III)(This report concerns a proposed or pending acquisition or disposition of land for municipal or local board purposes)

Nil

Meeting (Open to the Public) 1:00 p.m.
Committee Room #2, 2nd Floor, City Hall

Meeting No. 1971 held on Wednesday, April 30, 2014
Meeting No. 1972 held on Wednesday, May 14, 2014

NIL

Public Presentations - May 28, 2014

Annual TTC Board Meeting Schedule
Decision: Annual TTC Board Meeting Schedule

Nil

Nil

Delivery Vehicles Obstructing Traffic Routes

• Staff report
• Decision

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

• 1a. Procurement Authorization - Supply of Fare Media Cards for a 2-Year Term (For Action)
  
  This report involves the security of property belonging to the TTC.

  • Staff report for item 1a
  • Decision for item 1a



• 1b. Large Litigation Matters (For Information)
  
  This report contains advice or recommendations that are subject to Solicitor-Client Privilege.

  • Staff report for item 1b
  • Decision for item 1b



• 1c. Royal York Station (Easier Access Phase III) (For Action)
  
  This report concerns a proposed or pending acquisition or disposition of land for municipal or local board purposes.

  • Staff report for item 1c
  • Decision for item 1c

Item 2. Presentations

Item 3. Budget matters

• 3a. Chief Executive Officer's Report - May 2014 Update (For Action)

  • Staff report for item 3a
  • Decision for item 3a

Item 4. Procurement Authorizations

• 4a. Supply of Cummins Factory Remanufactured ISB 6.7L Diesel Engines (For Action)

  • Staff report for item 4a
  • Decision for item 4a



• 4b. Procurement Authorization - Toronto-York Spadina Subway Extension Supply and Installation of Supervisory Control, Communication Cable and Tunnel Traction Power - Contract A80-23 (For Action)

  • Staff report for item 4b
  • Decision for item 4b



• 4c. Procurement Authorization - Ossington Station - Easier Access Phase III - Contract B45-2 (For Action)

  • Staff report for item 4c
  • Decision for item 4c

Item 5. Procurement Authorization Amendments

• 5a. Procurement Authorization Amendment - Payment Card Processing Services (For Action)

  • Staff report for item 5a
  • Decision for item 5a

Item 6. Notice of Awards

Item 7. Service Matters

Item 8. Other Business

• 8a. Improvements to TTC's Procurement and Project Management Process (For Information)

  • Staff report for item 8a
  • Decision for item 8a



• 8b. TTC Pension Fund Society Bylaw Amendments (For Action)

  • Staff report for item 8b
  • Decision for item 8b



• 8c. TTC Pension Fund Society 2014 Annual General Meeting Newsletter (For Information)

  • Staff report for item 8c
  • Decision for item 8c



• 8d. Lease Extension - 1120 Finch Avenue West (For Action)

  • Staff report for item 8d
  • Decision for item 8d



• 8e. Lease Extension - 40 Carl Hall Road (For Action)

  • Staff report for item 8e
  • Decision for item 8e



• 8f. Dupont Station - Easier Access Phase III - Contract A45-13 Project Update (For Information)

  • Staff report for item 8f
  • Decision for item 8f



• 8g. Islington Station Bus Terminal (For Information)

  • Staff report for item 8g
  • Decision for item 8g



• 8h. Auditor General's Report - TTC - Results of Follow-Up of Previous Audit Recommendations (For Action)

  • Staff report for item 8h
  • Decision for item 8h



• 8i. Auditor General's Report - Continuous Controls Monitoring Program - TTC 12-month Review of Employees Overtime and Related Expenses, 2013 (For Action)

  • Staff report for item 8i
  • Decision for item 8i

Item 9. New Business

Item 10. Correspondence

A correspondence summary will be distributed at the meeting.

• 10a. C-1 Susan Davidson, ACAT Chair - Forwarding approved minutes of the March 27, 2014 General Monthly meeting of the ACTA Advisory Committee

  • Correspondence for item 10a



• 10b. C-2 Susan Davidson, ACAT Chair - Forwarding two motions with respect to improving pedestrian safety when crossing to and from streetcar platforms located in a roadway

  • Correspondence for item 10b



• 10c. C-3 Report 14 re: Elimination of Streetcar Stop at King and Trinity

  • Correspondence for item 10c



• 10d. C-4 H. Moscoe re: Deferred Item - Delivery Vehicles Obstructing Transit Routes

  • Correspondence for item 10d



• 10e. C-5 Councillor Fletcher re: Report #14 Elimination of Streetcar Stops

  • Correspondence for item 10e



• 10f. C-6 Councillor McConnell Report 14 elimintion of Streetcar Stops

  • Correspondence for item 10f

Item 11. Procurement Authorization - Sedan Meter-Based Taxi Service for Wheel-Trans

Deferred from April 30, 2014 meeting.

This report contains advice or communications that are subject to solicitor-client privilege.

• Staff report for item 11
• Decision for item 11

Item 12. PricewaterhouseCoopers LLP Audit Results Report on the Toronto Transit Commission Consolidated Financial Statements For the Year Ended December 31, 2013 (For Action)

• Staff report for item 12
• Decision for item 12

Item 13. Draft Consolidated Financial Statements of Toronto Transit Commission for the Year Ended December 31, 2013 (For Action)

• Staff report for item 13
• Decision for item 13

Item 14. Improving Pedestrian Safety and Customer Journey Times: Transit Stops (For Action)

• Staff report for item 14
• Decision for item 14

Item 15. Customer Service Staffing Levels (For Information)

• Staff report for item 15
• Decision for item 15

Item 16. Prince Edward Viaduct Pier Rehabilitation: Cable Replacement (For Action)

• Staff report for item 16
• Decision for item 16

Item 17. 2013 TTC Operating budget Update (For Information)

• Staff report for item 17
• Decision for item 17

M. Augimeri (Chair), M. Adamson (Vice-Chair), A. Heisey Q.C., J. Parker, K. Stintz and A. Virmani (Members), A. Byford, S. Ghaly, R. Leary, V. Rodo, G. Shortt, C. Upfold, B. Ross, J. Taylor, B. Leck, J. Lee, K. Watson, D. LoPresti, K. Lee and D. McDonald.

R. Andreacchi and M. Boscariol (Chair’s Office), and A. Drennan (Commissioner Stintz’s Office) were also present.

John Campbell (JD Campbell & Associates) was present for Item (d).

M. Augimeri was in the Chair.

The meeting re-convened in public at 1:10 p.m. in Council Chamber.

M. Augimeri (Chair), M. Adamson (Vice-Chair), J. Colle, G. De Baeremaeker, N. Di Donato, A. Heisey Q.C., J. Parker, K. Stintz and A. Virmani (Members), A. Byford (Chief Executive Officer), S. Ghaly (Chief Capital Officer), R. Leary (Chief Service Officer), V. Rodo (Chief Financial & Administration Officer), G. Shortt (Chief Operating Officer), C. Upfold (Deputy Chief Executive Officer & Chief Customer Officer), B. Ross (Executive Director of Corporate Communications), J. Taylor (Chief of Staff), B. Leck (Head of Legal & General Counsel), J. Lee (Head of Materials & Procurement), M. Stambler (Head of Strategy and Service Planning), A. Pace (Head of Property, Planning and Development), M. Darakjian (Head of Pensions), D. Garisto (Director – Property Development), G. Carr (Chief Engineer – Strategy and Service Planning), K. Watson (Senior Manager – Wheel-Trans), P. Buttigieg (Director – Budgets, Costing & Financial Reporting), D. LoPresti (Transit Planner System Accessibility – Wheel-Trans), K. Lee (Head of Commission Services) and D. McDonald (Co-ordinator – Corporate Secretariat Services) were present.

M. Augimeri was in the Chair.

Nil

Vice-Chair Adamson moved that the Board approve the minutes from Meeting No. 1971 and 1972 and that the Chair and Chief Financial & Administration Officer be authorized to sign the same.

The motion by Vice-Chair Adamson carried.

Commissioner Heisey moved that the public minutes from the April 30, 2014 meeting be amended to include attendance for the Committee of the Whole meeting.

The motion by Commissioner Heisey carried.

Commissioner Stintz moved that the Board recess to meet as the Committee of the Whole to deal with litigation or potential litigation matters, labour relations, employee negotiations, and to receive advice which is subject to solicitor-client privilege.

The motion by Commissioner Stintz carried.

Meeting (open to the public) – 1:10 p.m.

a) Delivery Vehicles Obstructing Transit Routes (Deferred from April 30 Meeting)

Howard Moscoe

The Board received the deputation for information.
See Deferred Items (a) for minute.

b) Chief Executive Officer’s Report – May 2014 Update

Brian Boehlert

The Board received the deputation for information.
See Item 3(a) for minute.

c) Improving Pedestrian Safety and Customer Journey Times: Transit Stops

Councillor Paula Fletcher

City of Toronto

The Board received the deputation for information.
(See Item No. 14 for minute).

a) Annual TTC Board Meeting Schedule

Moved by: Commissioner Heisey
Seconded by: Commissioner De Baeremaeker

Whereas the 4 new citizen Commissioners were appointed to the TTC Board in October 2012 by City Council; and

Whereas the Board did not have a meeting for policy and strategic planning purposes scheduled after the time of our appointment until January 27, 2014 a period of 15 months; and

Whereas the policy and strategic planning component of the January 27 meeting could not proceed due to lack of time that day and a new meeting could not be rescheduled in a time frame that was meaningful in the Board’s remaining mandate; and

Whereas during the years 2011-2014 there will only have been one Board meeting, in February 2012, for members to discuss strategic and policy direction for the Commission outside of a regularly scheduled Board meeting; and

Whereas it is important that strategic and policy meetings be held by the Board at least once a year outside of a regular Board meeting and that the Board meet specifically on the subject of Collective Bargaining well in advance of the expiry of Collective Bargaining agreements between the TTC and the bargaining agents for their unionized employees:

Be it resolved that:

1. the Board adopt a policy to incorporate into its annual schedule of meetings one additional public meeting per year to ensure future Boards have regular strategic review sessions outside of regular meetings; and

2. the Board adopt a policy to hold at least one special in-camera meeting on the subject of Collective Bargaining to take place at least one year prior to the expiry of Collective Bargaining agreements with the TTC’s employees’ bargaining agents.

Approved

Nil

Nil

NIL

a) Delivery Vehicles Obstructing Traffic Routes

Commissioner Heisey moved the following motion:

1. Withdrawal of his 5 part recommendation from the deferred April 30, 2014 Notice of Motion;

2. That Transportation Services, through the Public Works & Infrastructure Committee, be requested to provide updates to the TTC Board every 3 months on what action has been taken on City Council’s October 8, 2013 resolution on Item NM39.16 – Maintaining Traffic Flow in the Downtown Area. Furthermore, that the information as set out in the deferred Notice of Motion be submitted along with this resolution to the Public Works & Infrastructure Committee for their consideration.

The motion by Commissioner Heisey carried.

Commissioner Heisey also took carriage of the following recommendations submitted by deputant Howard Moscoe and as set out in correspondence Item No. 10/C4:

i) That the City of Toronto be requested establish a Road Management Policy Task Force for the purpose of developing a comprehensive plan for the above the surface management City of Toronto Streets.

ii) The task force be under the egis of Public Works but be jointly sponsored by Public Works, TTC and Planning with staff representation from Police Services, Toronto Parking Authority, Licensing and Standards, EMS and such other department as determined by the City Manager.

iii) The task force be directed to:

a) Establish a set of principles and priorities to govern the management of Toronto roads
b) From these develop a comprehensive Road and Congestion management plan for the City of Toronto
c) Review all existing traffic management, parking, standing, stopping and loading bylaws
d) Seek public input from a wide range of stakeholder groups and the general public
e) Explore all available technologies
f) Make recommendations to Council through the Public Works Committee.

The motion by Commissioner Heisey carried.

The item was adopted, as amended.

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

a) Procurement Authorization – Supply of Fare Media Cards for a 2-Year Term

It is recommended that:

1. The Board approve the recommendation as set out in the Confidential Attachment; and

The contents of the Confidential Attachment remain confidential in its entirety as it contains information related to the security of property belonging to the TTC.

Approved

b) Large Litigation Matters

It is recommended that the Board:

1. Receive the confidential information as set out in Confidential Attachment 1;

2. Note that the confidential information as set out in Confidential Attachment 1 remain confidential in its entirety as it contains advice which is subject to solicitor-client privilege; and

3. Receive this report for information purposes.

Received

c) Royal York Station (Easier Access Phase III)

It is recommended that the Board:

1. Approve the recommendations as set out in the Confidential Attachment; and

2. Maintain confidential the information set out in the Confidential Attachment until such time as the agreement(s) are executed with the property owners.

Approved

2. Presentations

NIL

3. Budget Matters

a) Chief Executive Officer’s Report – May 2014 Update

It is recommended that the TTC Board forward a copy of this report to (1) each City of Toronto Councillor and (2) the City Deputy Manager and Chief Financial Officer, for information.

Approved

4. Procurement Authorizations

a) Procurement Authorization – Supply of Cummins Factory Remanufactured ISB 6.7L Diesel Engines

It is recommended the Board authorize the award of a contract for the supply of Cummins factory remanufactured ISB 6.7L diesel engines to Cummins Eastern Canada LP in the amount of $5,150,472.43 including applicable taxes for a period of 24 months.

Approved

b) Purchase Authorization – Toronto-York Spadina Subway Extension Supply and Installation of Supervisory Control, Communication Cable and Tunnel Traction Power – Contract A80-23

It is recommended that the Board authorize the award of a contract to The State Group Inc. (State) in the amount of $27,568,964.82 for Contract A80-23, Supply and Installation of Supervisory Control, Communication Cable and Tunnel Traction Power.

Approved

c) Procurement Authorization – Ossington Station – Easier Access Phase III – Contract B45-2
It is recommended that the Board authorize the award of a contract to Buttcon Limited in the amount of $9,716,870.00 for Contract B45-2, Ossington Station – Easier Access Phase III, for the installation of elevators and associated equipment.

Approved

5. Procurement Authorization Amendments

a) Procurement Authorization Amendment – Payment Card Processing Services

It is recommended that the Board authorize the issuance of a contract amendment to Global Payments Canada Inc. for payment card processing services, to extend the contract from July 15, 2014 to April 30, 2015 with an increase of $3,450,000 in the total upset limit amount, bringing the revised limit to $6,461,000; noting that a publicly advertised Request for Bid (RFB) for the renewal contract for payment card processing services will be issued by staff in In the final quarter of 2014 upon successful completion of the Pilot for the Subway Collectors’ Point of Sale System (Smart Cash Register System).

Approved

6. Notice of Awards

NIL

7. Service Matters

NIL

8. Other Business

a) Improvements to TTC’s Procurement and Project Management Process

The Board received this report for information noting that staff will be providing terms of reference at the June meeting prior to reporting back in August on proposed initiatives.

b) TTC Pension Fund Society Bylaw Amendments

It is recommended that the Board approve the TTC Pension Fund Society (PFS) Bylaw amendments included in this report.

Approved

c) TTC Pension Fund Society 2014 Annual General Meeting Newsletter

It is recommended that the TTC Board receive for information the attached 2014 Annual General Meeting Newsletter, which includes the TTC Pension Fund Society (the PFS) and TTC Sick Benefit Association (the SBA) bylaw amendments and audited financial statements for the year ended December 31, 2013.

Received

d) Lease Extension – 1120 Finch Avenue West

It is recommended that the Board approve the extension of the term of the lease dated May 26, 2010 between Century Standard Development Corporation (the “Landlord”) and the Toronto Transit Commission (the “Tenant”) located on the eighth floor of 1120 Finch Avenue West (the “Lease”) for a further term of two (2) years in accordance with the offer dated January 24, 2014.

Approved

e) Lease Extension – 40 Carl Hall Road

It is recommended that the Board approve extending the term of the lease dated October 28, 2009 between Parc Downsview Park Inc. (the “Landlord”) and the Toronto Transit Commission (the “Tenant”) for 40 Carl Hall Road (the “Lease”) as amended by the lease amending agreements dated December 2, 2011, November 2, 2012 and May 28, 2013 between the Landlord and the Tenant, for a further term of two (2) years in accordance with the proposal received from the Landlord dated April 15, 2014.

Approved

f) Dupont Station – Easier Access Phase III – Contract A45-13 – Project Update
It is recommended that the Board receive this report for information.

Received

g) Islington Station Bus Terminal

It is recommended that the Board receive this report for information.

Received

h) Auditor General’s Report – Toronto Transit Commission – Results of Follow-Up of Previous Audit Recommendations

It is recommended that the TTC Board:

1. Receive the attached report from the Auditor General’s Office, City of Toronto, on the results of follow-up of previous audit recommendations in the audit report entitled “Review of Wheel-Trans Services – Sustaining Level and Quality of Service Requires Changes to the Program”; and

2. Approve the forwarding of the attached report for information to the Audit Committee of the City of Toronto.

Approved

i) Auditor General’s Report – Continuous Controls Monitoring Program – Toronto Transit Commission, 12-Month Review of Employees Overtime and Related Expenses, 2013

It is recommended that the TTC Board:

1. Receive for information the attached report from the Auditor General’s Office, City of Toronto, on the update status of the Continuous Controls Monitoring Program – Toronto Transit Commission, 12-Month Review of Employees Overtime and Related Expenses, 2013; and

2. Approved the forwarding of the attached report for information to the Audit Committee of the City of Toronto.

Approved

9. New Business

NIL

10. Correspondence

C1 – Susan Davidson, ACAT Chair, forwarding the approved minutes of the March 27, 2014 ACAT General Monthly meeting.

The Board received the communication for information.

C2 - Susan Davidson, ACAT Chair, forwarding two ACAT motions with respect to improving pedestrian safety when crossing to and from streetcar platforms located in a roadway.

The Board referred the communication to staff.

C3 – Various residents requesting the streetcar stop at King and Trinity Streets not be removed.

The Board received the communications for information.

(See Item No. 14 for minute).

C4 – Howard Moscoe regarding road management in the City of Toronto.

The Board received the communication for information.

(See Deferred Item (Page 4) – Delivery Vehicles Obstructing Transit Routes for minute)

C5 – Councillor Paula Fletcher regarding the elimination of streetcar stops.

The Board received the communication for information.

(See Item No. 14 for minute).

C6 – Councillor Pam McConnell regarding the elimination of the streetcar stops at King and Trinity Streets.

The Board received the communication for information.

(See Item No. 14 for minute). 

Report with Confidential Attachment (Committee of the Whole)

11. Procurement Authorization – Sedan Meter-Based Taxi Service for Wheel-Trans

It is recommended that the Board:

1. Receive the information provided in the Confidential Attachment.

2. That the information provided in the confidential attachment remain confidential in its entirety as it contains information that is subject to solicitor-client privilege.

3. Approve the recommendation in the deferred report Attachment ‘A’.

Approved

12. PricewaterhouseCoopers LLP Audit Results Report on the Toronto Transit Commission Consolidated Financial Statements for the Year Ended December 31, 2013

It is recommended that the Board:

1. Receive the attached report from PricewaterhouseCoopers LLP (“PWC”) regarding the audit of the consolidated financial statements of the Toronto Transit Commission for the year ended December 31, 2013, for information; and

2. Forward a copy of the attached report to City Council after the report is reviewed by the Audit Committee of the City of Toronto on June 27, 2014.

Approved

13. Draft Consolidated Financial Statements of Toronto Transit Commission for the Year Ended December 31, 2013.

Commissioner Stintz moved the following motion:

“Preliminary year-end financial statements indicated a 2013 year-end subsidy of $7.3 million. A number of regular year-end accounting adjustments largely based on actuarial estimates were made in finalizing this number, which is now $47.7 million. In 2013 the TTC spent less than what had been estimated in several areas, such as; long-term liabilities for workplace safety, insurance benefits, accident claims payouts, retroactive pay, overhead costs to capital projects and administrative fees.

City of Toronto policy requires all surplus to go back to the City which essentially reduces the TTC’s subsidy for that year. This is a City of Toronto policy and applies to all agencies, boards and commissions of the City

The surplus cannot be reallocated to the TTC operating budget for one-time service increases because any service increase would need to be maintained year-over-year.

Recommendation:

That the Board request Council approval for the TTC to retain the $47.7 million surplus for next year’s budgeting purposes to avoid a fare increase for 2015”.

The motion by Commissioner Stintz carried unanimously

Chair Augimeri moved the following motion:

“That the Board request Council to direct the City Manager to work with TTC staff to develop a 5-year funding scope for the TTC to allow for the use of any year-end variances in operating budget allocations to assist in long-term service planning and operations, and report out through the 2015 Budget Process".
The motion by Chair Augimeri carried unanimously.

Commissioner Heisey requested that the record show that he would have preferred an earlier discussion by the Board on other potential priority uses for the surplus.

The Board adopted the item, as amended.

14. Improving Pedestrian Safety and Customer Journey Times: Transit Stops

Chair Augimeri moved that the Board:

1. authorize staff to proceed with the recommended changes to the stops in the staff report where consensus has been reached; and

2. refer the remaining stops identified in the staff report back to staff for further consultation with local Councillors and for report back to the next meeting.

The motion by Chair Augimeri carried.

Chair Augimeri also took carriage of the following recommendations on behalf of Councillor Fletcher as referenced in her deputation and as set out in correspondence Item No. C5.

That the Board:

i) refer the removal of the 501 Queen stops at Caroline and Brooklyn to TTC staff in order to consult with the City’s BIA office and the Leslieville BIA.

ii) refer the removal of the Broadview/Mount Stephen’s stops for the 504 and 505 cars back to TTC staff to reconsider the elimination of these stops in conjunction with the TTC’s transit stops and crosswalk policy.

The motion by Chair Augimeri carried.

The item was adopted, as amended.

15. Customer Service Staffing Levels

It is recommended that the Board receive this report for information.

Received

16. Prince Edward Viaduct Pier Rehabilitation: Cable Replacement

It is recommended that the Board:

1. Confirm approval to proceed with the unbudgeted cable replacement project, estimated at $2,782,000.00 in conjunction with the City’s Prince Edward Viaduct pier (PEV) rehabilitation; and

2. Forward this report to the City of Toronto for Council approval.

Approved

17. 2013 TTC Operating Budget Update

It is recommended that the Board receive this report for information.

Received

The meeting adjourned at 2:35 p.m.