Board Meeting - October 28, 2015

Meeting to commence at 10 am to deal with Declarations of Interest and a resolution to conduct a portion of the meeting in the absence of the public. The Board 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.

Meeting No. 1989 held on Monday, September 28, 2015

Public Presentations - October 28, 2015

Item 1. Chief Executive Officer's Report - October 2015 Update (For Information)

• Staff report for item 1
• Decision for item 1

Item 2. Presentation: Organizational Span of Control Review (For Information)

Deferred from board meeting of September 28, 2015.

• Staff report for item 2
• Decision for item 2

Item 3. Presentation: SmartTrack Status Update (For Action)

• Staff report for item 3
• Decision for item 3

Item 4. Presentation: Q3 2015 Customer Satisfaction Survey Results (For Information)

• Staff report for item 4
• Decision for item 4

Item 5. Presentation: 2016-2025 Bus Fleet and Facility Plan (For Action)

• Staff report for item 5
• Correspondence for item 5
• Decision for item 5

Item 6. Executive Compensation Review (For Action)

This report with confidential attachment contains information that is subject to labour relations privilege.

• Staff report for item 6
• Decision for item 6

Item 7. Lease of Office Space for the South Field Office - 330 Bay Street (For Action)

This report is about a proposed or pending land acquisition or disposition of land for municipal or local board purposes.

• Staff report for item 7
• Decision for item 7

Item 8. Board Request: Staff Review of Options to Exclude Bombardier from Future Bidding (For Action)

This report with confidential attachment contains information that is subject to solicitor-client privilege.

• Staff report for item 8
• Decision for item 8

Item 9. Toronto-York Spadina Subway Extension - York University Contract A29-1 Acceleration Works CD139 (For Action)

This report with confidential attachment contains information that is subject to solicitor-client privilege.

• Staff report for item 9
• Decision for item 9

Item 10. Toronto-York Spadina Subway Extension - Property Transfers from Regional Municipality of York to TTC (For Action)

• Staff report for item 10
• Decision for item 10

Item 11. Terms of Reference - Human Resources and Labour Relations Committee (For Information)

Deferred From the September 28, 2015 to permit debate.

• Staff report for item 11
• Decision for item 11

Item 12. 2016 TTC Board and Committee Meeting Schedule (For Action)

• Staff report for item 12
• Decision for item 12

Item 13. Accessible Taxi Service - HST Information for Drivers (For Action)

• Staff report for item 13
• Decision for item 13

Item 14. Unionized Bus Driver Wages - Private Sector (For Information)

Considered by the Human Resources and Labour Relations Committee September 24, 2015.

• Staff report for item 14
• Decision for item 14

Item 15. Approved Minutes of the Advisory Committee on Accessible Transit (ACAT) General Monthly Meeting for August 27, 2015 (For Information)

• Staff report for item 15
• Decision for item 15

Item 16. 2014 Annual Report on Diversity and Human Rights Achievements (For Action)

Considered by the Human Resources and Labour Relations Committee September 24, 2015.

• Staff report for item 16
• Decision for item 16

J. Colle (Chair), A. Heisey Q.C. (Vice-Chair), M. Adamson, R. Byers, J. Campbell, V. Crisanti, G. De Baeremaeker, R. Lalonde, D. Minnan-Wong and J. Mihevc (Members), A. Byford (Chief Executive Officer), C. Upfold (Deputy Chief Executive Officer & Chief Customer Officer), R. Leary (Chief Service Officer), S. Reed Tanaka (Chief Capital Officer), V. Rodo (Chief Financial & Administration Officer), B. Ross (Executive Director - Corporate Communications), G. Shortt (Chief Operating Officer), J. Taylor (Chief of Staff), B. Leck (Head - Legal & General Counsel), J. Lee (Head - Materials & Procurement), S. Lam (Head – Streetcar), M. Stambler (Head - Strategy & Service Planning), R. Wong (Head – Bus Maintenance), A. Borkwood (Head – Customer Development), V. Albanese (Head – Diversity & Human Rights), K. Kuzmowich (Diversity Lead & Human Rights Consultant), J. Kervin (Head – Property, Planning & Development Management), B. Brown (Chief – Vehicle Engineering), G. Houston (Fleet Manager – Bus Maintenance & Shops), V. Artemyeva (Research Manager), K. Lee (Head - Commission Services) and D. McDonald (Co-ordinator – Corporate Secretariat Services) were present.

J. Colle was in the Chair.

John Livey (Deputy City Manager) and Peter Notaro (Director – Corporate Intergovernmental and Agency Relations – City Manager’s Office) were present for Item 3.

Nil

Commissioner Campbell moved that the Board approve the minutes from Meeting No. 1989 and that the Chair and Chief Financial & Administration Officer be authorized to sign the same.

The motion by Commissioner Campbell carried.

Nil

a) SmartTrack Status Update
Hamish Wilson (submitted brief)
Bob Brent
Dan Grgas
The Board received the deputations for information.
(See Item No. 3 for minute).

b) 2016 – 2025 Bus Fleet and Facility Plan
Alan Yule
Emily Daigle
The Board received the deputations for information.
(See Item No. 5 for minute).

c) Board Request: Staff Review of Options to Exclude Bombardier from Future Bidding
Chair Colle moved that the Board waive Section 13(a) of the Procedures Bylaw relating to notice provisions for public presentations to permit a deputation on this item.

The motion by Chair Colle carried on a two thirds vote of the members present.

Elle Cook

The Board received the deputation for information.
(See Item No. 8 for minute).

d) Toronto-York Spadina Subway Extension – York University Station, Contract A29-1 - Acceleration Works CD139

Chair Colle moved that the Board waive Section 13(a) of the Procedures Bylaw relating to notice provisions for public presentations to permit a deputation on this item.

The motion by Chair Colle carried on a two thirds vote of the members present.

Elle Cook

The Board received the deputation for information.

(See Item No. 9 for minute).

1. Chief Executive Officer’s Report –October 2015 Update

The Board received the Chief Executive Officer’s Report – October 2015 Update for information.

2. Presentation: Organizational Span of Control Review

The Board opted to forego the presentation on this item from WMC Consultants and received the report for information.

3. SmartTrack Status Update

John Livey (Deputy City Manager), Chris Upfold (Deputy Chief Executive Officer & Chief Customer Officer) and Peter Notaro (Director – Corporate Intergovernmental and Agency Relations – City Manager’s Office) provided a presentation to the TTC Board on this item.

Chair Colle thanked staff for their presentation and advised that the Board looks forward to being kept informed on the matter at Board level.

The item was received for information.

4. Presentation: Q3 2015 Customer Satisfaction Survey Results

Arthur Borkwood (Head - Customer Development) and Viktoriya Artemyeva (Research Manager) provided a PowerPoint presentation on this item.

The Board received the presentation for information.

5. Presentation: 2016 – 2025 Bus Fleet and Facility Plan

Richard Wong (Head – Bus Maintenance) and Mitch Stambler (Head – Strategy & Service Planning) provided a PowerPoint Presentation on this item.

The Board received the presentation for information.

Chair Colle moved the following motion on the item:

• Direct TTC staff to report back on any operational efficiencies realized and a cost-benefit analysis of securing an additional new permanent bus garage in the City of Toronto.

The motion by Chair Colle carried.

Commissioner De Baeremaeker moved the following motion on the item:

• That staff report back on the City of Edmonton electric bus pilot project; the state of electric bus technology, CNG and other technologies; and how the TTC plans to meet the City of Toronto's energy efficiency and clean air targets.

The motion by Commissioner De Baeremaeker carried.

Commissioner Mihevc moved the following motion on the item:

• Request staff to report back well in advance of the 2017 budget process on a bus purchase strategy that takes into account:

a) a return to the TTC historic crowding standards; and

b) a stronger growth rate of TTC ridership.

The motion by Commissioner Mihevc carried.

Commissioner Minnan-Wong moved the following motion on the item:

• That staff be requested to review and make recommendations to improve the procurement process.

The motion by Commissioner Minnan-Wong carried.

The Board adopted the item, as amended.

(Correspondence on this item was received from Dr. Phillip Webb, Cities Centre, University of Toronto).

6. TTC Executive Compensation Review

The Board:

1. Received the information as set out in the Confidential Attachment.

2. Authorized that the information provided in the Confidential Attachment is to remain confidential in its entirety as it contains information that is subject to labour relations privilege.

3. Approved forwarding the report to the City Manager in accordance with the August 2014 decision of City Council (EX44.8).

7. Lease of Office Space for South Field Office- 330 Bay Street

It is recommended that the Board:

1. Adopt the confidential recommendations contained in the Confidential Attachment to this report;

2. Approve the offer to lease for the office space located at 330 Bay Street 7th floor, Toronto, Ontario, having the terms and conditions set out in the Confidential Attachment;

3. Delegate authority to the CEO to execute a lease for office space located at 330 Bay Street, Toronto, Ontario based on the offer to lease in a form satisfactory to TTC’s Head of Legal and General Counsel; and

4. Authorize the public release of the confidential information contained in this report once a lease has been executed between the TTC and the landlord of 330 Bay Street.

Approved

8. Board Request: Staff Review of Options to Exclude Bombardier from Future Bidding

Chair Colle moved the following motion:

The Board:

1. Adopt the recommendation in the staff report; as follows:

It is recommended that the Board:

Authorize the TTC General Counsel to immediately commence a claim or legal action against Bombardier for all damages sustained by the TTC relating to or arising from the schedule delays in the delivery of the streetcars and any other non-performance related issues.

2. Direct the Chair to write to the CEO Bombardier requesting he appear before the Board at its November Commission meeting to explain Bombardier's failure to meet past deadlines and its delivery commitments for streetcars going forward;

3. Request TTC management to consult with alternative suppliers for delivery of the remaining TTC streetcars, should Bombardier be unable for whatever reason to fulfill this order within contractual timelines;

4. Request TTC staff to report back on the financial and operational impacts on the TTC should Bombardier not be able to fulfill their contractual obligations to deliver streetcars;

5. Request TTC staff to seek the advice of an outside business analyst to present to the Board on their assessment of Bombardier's corporate outlook;

6. Request TTC staff, in any negotiations on damages, liquidated or otherwise, to consider as a priority additional LRV's as compensation; and

7. Direct the Chair to write to the Premier of Ontario requesting the Province's support in facilitating the completion of the City of Toronto's order for streetcars from Bombardier.

Commissioner De Baeremaeker called for a recorded vote on the motion.

In favour: Chair Colle, Vice-Chair Heisey, Commissioner Adamson, Commissioner Byers, Commissioner Crisanti, Commissioner De Baeremaeker, Commissioner Lalonde and Commissioner Minnan-Wong.

Opposed: Nil

Not present for the recorded vote: Commissioner Campbell and Commissioner Mihevc.

The motion by Chair Colle carried on a unanimous vote of 8 to 0.

The item was adopted, as amended.

9. Toronto-York Spadina Subway Extension – York University Station, Contract A29-1 – Acceleration Works CD139

It is recommended that the Board:

1. Approve the recommendation outlined in the confidential attachment.

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

Approved

10. Toronto- York Spadina Subway Extension – Property Transfers from Regional Municipality of York to TTC
It is recommended that the Board:

1. Authorize staff to prepare all necessary documentation to complete the transfer of permanent property interests from York, and as required from Vaughan, acquired for the TYSSE project to TTC, in a form satisfactory to TTC General Counsel, consistent with interests shown on Attachments A2 to A5 (subject to minor adjustments); and

2. Authorize staff to prepare all documentation required to ensure that all necessary agreements and/or property interests (e.g. easements) are provided to York and Vaughan to permit York and Vaughan appropriate access to those portions of the project assets which they will be responsible to construct/maintain, in a form satisfactory to TTC General Counsel; and

3. Delegate authority to the CEO (or his delegate) to execute the necessary documentation to enable all required property transfers as set out in Recommendations 1 and 2 above; and

4. Transmit a copy of this report to the CAO, Regional Municipality of York and CAO of City of Vaughan for information.

Approved

11. Terms of Reference for the Human Resources and Labour Relations Committee

The Board received the item for information.

12. 2016 Board and Committee Meeting Schedule

It is recommended that the Board approve:

1. The 2016 meeting schedule dates for the TTC Board and the Audit and Risk Management, Budget, and Human Resources and Labour Relations Committees, as set out below (see Attachment 1 for calendar view) ; and

2. That the published schedule serve as notice of these meetings.

TTC Board

• Thurs., January 21, 2016
• Thurs., February 25, 2016
• Wed., March 23, 2016
• Thurs. April 7, 2016
• Wed., April 27, 2016
• Tues., May 31, 2016
• Wed., June 29, 2016
• Wed., July 27, 2016
• Wed., September 28, 2016
• Thurs., October 27, 2016
• Wed., November 30, 2016
• Tues., December 20, 2016 

Audit & Risk Management

• Wed., February, 10, 2016
• Wed., May 25, 2016
• Wed., July 20, 2016
• Wed., October 19, 2016

Budget Committee

• Mon., January 11, 2016
• Tues. April 19, 2016
• Thurs., June 16, 2016
• Tues., September 6, 2016

Human Resources & Labour Relations

• Thurs., March 3, 2016
• Wed., June 1, 2016
• Thurs., November 17, 2016

Approved

13. Accessible Taxi Service – HST Information for Drivers

It is recommended that the board:

1. Receive this report in response to the request from the May 27, 2015 Board Meeting.

Received

14. Unionized Bus Driver Wages – Private Sector

The Board received the item for information.

15. Approved Minutes of the Advisory Committee on Accessible Transit (ACAT) General Monthly Meeting for August 27, 2015.

The Board received for information the approved minutes from the Advisory Committee on Accessible Transit (ACAT) General Monthly Meeting of August 27, 2015.

16. 2014 Annual Report on Diversity and Human Rights Achievements

It is recommended that the Board:

1. Receive the report, as amended, for information; and

2. Forward the report to City Council, through the Executive Committee, for information.

Approved

The meeting adjourned at 5:10 p.m.

In response to information staff received from Bombardier Transportation on Oct. 15, 2015, which indicated production issues and further delays to new streetcar deliveries, the TTC Board unanimously approved the following motions:

• Authorize the TTC General Counsel to immediately commence a claim or legal action against Bombardier for all damages sustained by the TTC relating to or arising from the schedule delays in the delivery of the streetcars and any other non-performance-related issues.
• Direct the Chair to write to the CEO Bombardier requesting he appear before the Board at its November Commission meeting to explain Bombardier’s failure to meet past deadlines and its delivery commitments for streetcars going forward.
• Request TTC management to consult with alternative suppliers for delivery of the remaining TTC streetcars, should Bombardier be unable for whatever reason to fulfill this order within contractual timelines.
• Request TTC staff to report back on the financial and operational impacts on the TTC should Bombardier not be able to fulfill their contractual obligations to deliver streetcars.
• Request TTC staff to seek advice of an outside business analyst to present to the Board on their assessment of Bombardier’s corporate outlook.
• Request TTC staff, in any negotiations on damages, liquidated or otherwise, to consider as a priority additional LRVs as compensation.
• Direct the Chair to write to the Premier of Ontario requesting the Province’s support in facilitating the completion of the City of Toronto’s order for streetcars from Bombardier.

The TTC Board received a comprehensive presentation from TTC staff on the 2016-2025 Bus Fleet and Facility Plan. The plan addresses the TTC’s service maintenance and facility requirements, and proposes to improve vehicle reliability and customer service. The plan is developed annually in conjunction with service planning and ridership requirements, which allow operations staff to determine bus fleet size, future procurement requirements and overall vehicle availability.

Key proposals in the plan include: moving to a steady-state procurement practice; increasing the bus spare ratio to 18 per cent from 12 per cent in 2016; starting the early retirement of 255 hybrid buses; re-aligning the diesel bus overhaul schedule; improving bus reliability via a reliability-centred maintenance program; adjusting the current bus life policy; and addressing over-capacity issues at garages.

The TTC runs close to 1,600 buses in service during peak times, operates over 134 million kilometres annually and averages more than 440 million bus boardings per year. A total of 60 per cent of customers use a bus as part of their daily trip.

Board members received a presentation from TTC staff indicating customer satisfaction has risen to an all-time high of 81 per cent. The Q3 Customer Satisfaction Survey results revealed overall satisfaction continues to show a positive trend, improving from a 79-per-cent rating in the second quarter of this year, and compared to a 74-per-cent rating that was reached in the third quarter of 2014.

The Q3 results (July to September) capture the TTC’s exceptional planning and service performance during the summer’s Pan Am/Parapan Am Games, which featured additional bus, streetcar and subway service, earlier-than-normal subway opening on Sundays and special cleanings at designated transit hubs.

The survey results indicate increasing satisfaction across all modes of transportation – bus, streetcar and subway – all of which scored a good/excellent rating of 80 per cent or better. Also pointing to a sustained upward trend is the fact that the increase in overall satisfaction is being driven by frequent riders, who are the most likely customers to experience service disruptions.

Commissioners approved the 2016 schedule of Board meetings at Toronto City Hall as follows (held at 1 p.m. unless otherwise indicated): Thursday, January 21; Thursday, February 25; Wednesday, March 23; Thursday, April 7 (Special Board Strategy); Wednesday, April 27; Tuesday, May 31; Wednesday, June 29; Wednesday, July 27; Wednesday, September 28; Thursday, October 27; Wednesday, November 30; and Tuesday, December 20.

The Board also approved the schedule of meetings for the TTC Audit and Risk Management Committee: Wednesday, February 10; Wednesday, May 25; Wednesday, July 20; and Wednesday, October 19; and the schedule of meetings for the TTC Budget Committee: Monday, January 11, Tuesday, April 19; Thursday, June 16; and Tuesday, September 6; and the schedule of meetings for the TTC Human Resources and Labour Relations Committee: Thursday, March 3, Wednesday, June 1; and Thursday, November 17.

The next scheduled regular TTC Board meeting will be on Monday, November 23 at Toronto City Hall, Council Chamber, starting at 10 a.m., with the public session starting at 1 p.m.