Board Meeting - February 2, 2015

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

Item 2. Presentations

• 2a. A presentation will be provided for Items 3a and 3b

Item 3. Budget matters

• 3a. 2015 TTC and Wheel-Trans Operating Budgets (For Action)

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



• 3b. 2015-2024 TTC Capital Budget (For Action)

  • Staff report for item 3b
  • Decision for item 3b

Item 4. Procurement Authorizations

Item 5. Procurement Authorization Amendments

Item 6. Notice of Awards

Item 7. Service Matters

Item 8. Accessibility Matters

Item 9. Other Business

Item 10. New Business

Item 11. Correspondence

A correspondence summary will be distributed at the meeting.

• 11a. S. Mullett Re: Report 3(a) 2015 TTC and Wheel-Trans Operating Budgets

  • Correspondence for item 11a



• 11b. Toronto Catholic District School Board re: Report 3(a) 2015 TTC and Wheel-Trans Operating Budgets

  • Correspondence for item 11b



• 11c. J. Erent re: Report 3(a) 2015 TTC and Wheel-Trans Operating Budgets

  • Correspondence for item 11c

J. Colle (Chair), M. Adamson (Vice-Chair), J. Campbell, S. Carroll, V. Crisanti, G. De Baeremaeker, A. Heisey Q.C., J. Mihevc and D. Minnan-Wong (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), J. Taylor (Chief of Staff), C. Upfold (Deputy Chief Executive Officer & Chief Customer Officer), B. Ross (Executive Director of Corporate Communications), B. Leck (Head of Legal & General Counsel), M. Roche (Head of Finance & Treasurer), R. Wong (Head of Bus Maintenance), S. Lam (Head of Streetcar Maintenance), D. Campbell (Head of Service Delivery Control), T. Creazzo (Head of Operations Control), K. Watling (Head of Subway Infrastructure), M. Stambler (Head of Strategy & Service Planning), R. Trentadue (Head of Rail Cars & Shops), C. Thoun (Head of Customer Communications), K. Watson (Senior Manager – Wheel-Trans), J. Imbrogno (Director – Capital Accounting), P. Buttigieg (Director – Budgets, Costing & Financial Reporting), V. Cosentino (Director of Statistics), G. Houston (Bus Fleet Manager), K. Lee (Head of Commission Services) and D. McDonald (Co-ordinator – Corporate Secretariat Services) were present.

J. Colle was in the Chair.

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Prior to proceeding with public presentations Commissioner Carroll moved that the Board allow any member of the public who missed the registration deadline and who wishes to speak to add their names to the speakers list until 12:00 noon.

The motion by Commissioner Carroll carried on a two thirds vote of the members present.

a) 2015 TTC and Wheel-Trans Operating Budgets

Brian Boehlert

Bill Reno

Kamilla Pietrzyk

Jessica Bell, TTCriders

Herman Rosenfield, TTCriders

Brenda Thompson, Scarborough Transit Action

Helen Liu, Chinese Seniors Association

Vincent Puhakka, Scarborough Transit Action

Asha Mohamed, Fair Fare Coalition

Jennifer Huang, Toronto & York Region Labour Council

Janice Ashby

Joel Sterling

Rebecca Phinnemore, TTCriders

Suhail Barot

Moya Beail

Jessica Marsden

Alan Yule

Miroslav Glavic

Heather Powell

Kelly Lalonde

Risto Puhakka

Peter Vukosavljev

Mazin Aribi

The Board received the deputations for information.

(See Item No. 3(a) for minute).

b) 2015 – 2024 TTC Capital Budget

Alan Yule

The Board received the deputation for information.

(See Item No. 3(b) for minute).

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

   NIL

2. Presentations

   NIL

3. Budget Matters

   a) 2015 TTC and Wheel-Trans Operating Budgets

   A. Byford, Chief Executive Officer, provided a PowerPoint presentation on the 2015 TTC and Wheel-Trans Operating Budgets.

   The Board received the presentation for information and adopted the recommendations in the staff report, as follows:

   “It is recommended that the Board:

   1. approve the 2015 TTC Operating Budget as detailed in this report and as summarized in Appendix A;
   2. approve the 2015 Wheel-Trans Operating Budget as detailed later in this report and as summarized in Appendix B;
   3. approve, effective March 1, 2015:
      • a 10 cent increase in the price of a single adult token and a proportionate increase in all other fares (except for cash and children’s fares);
      • a one-trip increase in the price of the Adult Metropass; and
      • children aged 12 and under will ride for free as detailed in this report and set out in Appendix C
   4. forward this report to the City of Toronto for submission into the City Budget process and for confirmation of the 2015 operating subsidy levels;
   5. forward this report to the Metrolinx Board; and
   6. forward this report to the Ontario Minister of Transportation”.

   Commissioner Mihevc moved the following four (4) ancillary motions:

   1. That Staff report back by May 2015 on a more rigorous TTC budget process involving the TTC Board.
   2. That social service agencies that purchased bulk TTC tokens are offered tokens at the same cost in 2015 as in 2014; the maximum number of discounted tokens to be equal to the amount purchased in 2014.
   3. That the TTC with the City petition the Province to restore operating subsidies to the TTC to historic levels as part of its 2015 budget; and that the TTC work with the City to develop an advocacy plan in 2015 to that end.
   4. That the TTC reaffirm its commitment to discounted fares for low income residents and that TTC work with the City and outside stakeholders prior to the 2016 TTC budget with a plan within the context of a poverty reduction strategy.
      The foregoing motions by Commissioner Mihevc were voted on separately and all four (4) motions carried.
      Commissioner Carroll moved the following ancillary motion:
   5. That staff:

   a) develop a draft campaign to achieve a Provincial Operating Subsidy on a per rider basis; and

   b) consult with the City Manager's office before bringing the requested draft campaign to the TTC Board.
   The motion by Commissioner Carroll carried.
   Chair Colle moved adoption of the item, as amended.
   The motion by Chair Colle carried unanimously.

   b) 2015-2024 TTC Capital Budget

   A. Byford, Chief Executive Officer, provided a PowerPoint presentation on the 2015 – 2024 TTC Capital Budget.

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

   “It is recommended that the Board:

   1. Approve the 2015-2024 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 in Appendix B (the Blue Pages); noting that there are $2.4 billion of Unfunded Projects as shown on Appendix D;
   2. Forward this report to the City of Toronto for submission to the City’s budget process;
   3. Forward this report to the Metrolinx Board; and
   4. Forward this report to the Ontario Minister of Transportation and to the Federal Minister of Transportation”.

4. Procurement Authorizations

   NIL

5. Procurement Authorization Amendments

   NIL

6. Notice of Awards

   NIL

7. Service Matters

   NIL

8. Accessibility Issues

   NIL

9. Other Business

   NIL

10. New Business

    C1 – S. Mullett - Item (a) 2015 TTC and Wheel-Trans Operating Budgets

    C2 – Toronto Catholic District School Board - Item (a) 2015 TTC and Wheel-Trans Operating Budgets

    C3 – J. Erent - Item (a) 2015 TTC and Wheel-Trans Operating Budgets
    The Board received the subject communications for information.
    (See Item (a) – 2015 TTC and Wheel-Trans Operating Budgets for minute).

11. Correspondence

    NIL

    The meeting adjourned at 3:40 p.m.

The Board unanimously approved the TTC’s 2015 Operating, Wheel-Trans and Capital Budgets. The budgets will be forwarded to the City of Toronto for submission to the City Budget process and for confirmation of the 2015 operating subsidy level. Here is what was approved:

Board Members approved expenses totalling $1.69 billion, with an assumed operating subsidy of $479 million. To balance its budget, the TTC would need a total subsidy of $488 million. The TTC is projecting a record ridership level of 545 million in 2015 (1.9 per cent higher than the 534.8 million achieved in 2014), while maintaining its cost-recovery rate at 71 per cent – one of the highest in North America. Based on the anticipated subsidy level of $478.9 million and a $9-million draw from the TTC Stabilization reserve, the 2015 budget will be balanced.

The Board approved a 10-cent increase in the price of a single Adult token ($2.80 from $2.70) effective on March 1, 2015, and a proportionate increase to all other fares, plus a one-trip increase in the price of the Adult Metropass. Commissioners also approved the elimination of the Child fare (children aged 12 and under will ride for free) while Cash fares remain unchanged. The fare increase is in line with the rate of inflation.

The 2015 budget includes $95-million worth of new and enhanced service priorities to improve existing services and add new services to meet ridership demand across Toronto. Here is a summary of the tangible service enhancements that customers can begin to see this year:

• More bus and streetcar service at off-peak periods to reduce crowding on approximately 67 routes, which will benefit 55 million customer trips and add 1.8 million new customer trips.
• A city-wide network of 10-minutes or better service frequency, which will benefit 48 million customer trips and add 1.8 million new customer trips.
• New express bus services at off-peak periods to provide faster and more comfortable journeys.
• Phased-in restoration of all-day, every day service on the vast majority of bus and streetcar routes starting this year and into 2016.
• Expand the overnight Blue Night network with approximately 12 additional bus and streetcar routes to reduce walking distances and add 300,000 new customer trips. The Board also approved the following motions presented by Commissioners Joe Mihevc and Shelley Carroll:
• The TTC reaffirm its commitment to discounted fares for low-income residents, and that the TTC work with the City and outside stakeholders prior to the 2016 TTC budget with a plan within the context of a poverty reduction strategy.
• The TTC with the City petition the Province to restore operating subsidies to the TTC to historic levels as part of its 2015 budget, and that the TTC work with the City to develop an advocacy plan in 2015 to that end.
• Social service agencies that purchased bulk TTC tokens are offered tokens at the same cost in 2015 as in 2014; the maximum number of discounted tokens to be equal to the amount purchased in 2014.
• TTC staff to develop a draft campaign to achieve a provincial operating subsidy on a per-rider basis and consult with the City Manager’s Office before bringing the requested draft campaign to the TTC Board.

Board Members approved a total of $1.15 billion for the 2015 portion of the 2015-2024 Capital Budget. The budget continues to provide for state-of-good-repair projects and legislative requirements (96 per cent of the total in the 10-year envelope). The 2015-2024 Capital Budget is worth $9.27 billion.

The 2015 portion includes vehicle procurements ($510 million) and infrastructure projects ($639 million).

Based on current funding assumptions, there is sufficient funding available to cover 2015 budgeted expenditures. But over the next five-year period the TTC is facing a $382-million shortfall; over the total 10-year-period the shortfall grows to $2.4 billion.

Board Members approved the 2015 Wheel-Trans Operating Budget worth $109.1 million. The funding will maintain a 24/7 specialized service, a customer accommodated rate at 99 per cent, accommodate six-per-cent more riders, and see upgrades to the scheduling system, call centre telephone system and internet trip-booking site. Total ridership in 2015 is projected at an all-time-high of 3.2 million trips.

This year Wheel-Trans will be investing in a rebuild program for its Friendly bus fleet and begin a testing a smaller, more fuel efficient vehicle for future needs.

The next scheduled regular TTC Board meeting will be on Wed., Feb. 25 at Toronto City Hall, Council Chamber, starting at 10 a.m., with the public session starting at 1 p.m.