Board Meeting - January 24, 2019

Meeting No. 2028 held on Thursday, January 10, 2019

Requests to speak must be registered by noon of the business day preceding meeting day. A final deputation list will be distributed at the meeting. 

Item 1. Chief Executive Officer's Report - January 2019 Update (For Information)

• Staff report for item 1
• Decision for item 1

Item 2. Approved Minutes of the Advisory Committee on Accessible Transit (ACAT) General Monthly Meetings for November 29, 2018 (For Information)

• Staff report for item 2
• Decision for item 2

Item 3. Large Litigation Matters (For Action)

This report contains advice or communications that are subject to solicitor-client privilege, including communications necessary for that purpose and/or litigation privilege.

• Staff report for item 3
• Decision for item 3

Item 4. Line 2 East Extension Property Acquisition (For Action)

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

• Staff report for item 4
• Decision for item 4

Item 5. Interest Arbitration Results and Non-Union Benefits/Cost of Living Adjustment (For Action)

This report is about labour relations or employee negotiations.

• Staff report for item 5
• Decision for item 5

Item 6. City Council Transmittal - New Business Item 1.6 Engagement with the Province on Toronto's Transit System (For Information)

• Staff report for item 6
• Decision for item 6

Item 7. Strategy for Future Wheel-Trans Taxi Service Contracts (For Action)

• Staff report for item 7
• Decision for item 7

Item 8. Financial Update for the Period Ended September 29, 2018 (For Information)

• Staff report for item 8
• Decision for item 8

Item 9. Diesel Fuel Contract (For Action)

• Staff report for item 9
• Decision for item 9

Item 10. TTC 15-Year Capital Investment Plan & 2019 - 2028 Capital Budget & Plan (For Action)

• Staff report for item 10
• Staff presentation for item 10
• Blue pages for item 10
• Decision for item 10

Item 11. 2019 TTC and Wheel-Trans Operating Budgets (For Action)

• Staff report for item 11
• Decision for item 11

J. Robinson (Chair), A. Heisey, Q.C. (Vice-Chair), B. Bradford, S. Carroll, J. De Laurentiis, J. Karygiannis, J. McKelvie and D. Minnan-Wong (Members), R. Leary, C. Greenwood, B. Leck, M. MacRae, F. Monaco, G. Piemontese, S. Reed Tanaka, S. Sperling, J. Taylor, K. Watson, R. Wong, D. Wright, S. Ambrozy, M. Atlas, S. Conforti, S. Haskill, D. Mitchell, K. Lee and C. Finnerty were present.

V. Dabrus, P. Kraft and A. Yoannis were present for Item 3.

G. Downie, N. Jailal and S. Rice were present for Item 4.

S. Milloy was present for Item 5. 

D. Magisano (Mayor's Office) was also present.

J. Robinson was in the Chair.

J. Robinson (Chair), B. Bradford, S. Carroll, J. De Laurentiis, A. Heisey, Q.C., J. Karygiannis, J. McKelvie and D. Minnan-Wong (Members), R. Leary (Chief Executive Officer), G. Downie (Chief Transit Expansion Officer – acting), J. Fraser (Deputy Chief Operating Officer), C. Greenwood (Chief Service Officer), B. Leck (Head of Legal & General Counsel), M. MacRae (Executive Director – Human Resources), F. Monaco (Chief of Infrastructure and Engineering), J. O'Grady (Chief Safety Officer), G. Piemontese (Chief People Officer), S. Reed Tanaka (Chief Capital Officer), J. Ross (Chief Operating Officer), S. Sperling (Executive Director – Corporate Communications – acting), J. Taylor (Chief of Staff), K. Watson (Deputy CEO - Operations), R. Wong (Chief of Vehicles – acting), D. Wright (Chief Financial Officer), S. Conforti (Head of Finance/Treasurer), S. Haskill (Manager, Project Development and Coordination), S. Milloy (Director, Employee Relations), E. Wiggins (Head – Wheel-Trans), K. Lee (Head - Commission Services) and C. Finnerty (Co-ordinator – Secretariat Services) were present.

J. Robinson was in the Chair.  

Nil

Vice-Chair Heisey moved that the Board approve the minutes of the meeting held on Thursday, January 10, 2019.

The motion by Vice-Chair Heisey carried.

Nil

Vice-Chair Heisey moved the following motion:

Based on the large number of registered speakers and in order to allow everyone the opportunity to be heard during the meeting, that the Board, in accordance with the waiver of rules provisions as set out in Section 7 of the Bylaw to Govern Board Proceedings, waive Section 13(c) of the bylaw to reduce the amount of speaking time for public speakers from five minutes to three minutes.

The motion by Vice-Chair Heisey carried on a 2/3 majority vote.

Item No. 4 Line 2 East Extension Property Acquisition

Hamish Wilson

The Board received the deputation for information.
(See Item No. 4 for minute)

Item No. 10 TTC-Year Capital Investment Plan & 2019 – 2028 Capital Budget & Plan

Adam Cohoon
Shelagh Pizey-Allen
Barbara Stewart
Hamish Wilson
Michael Rosenberg

The Board received the deputations for information.
(See Item No. 10 for minute)

Item No. 11 2019 TTC and Wheel-Trans Operating Budgets

Alan Yule
Eli Aaron (Toronto Youth Cabinet)
Adam Cohoon
Dane Grgas
Cindy Loch-Drake on behalf of Anna Lermer
Anna Lermer on behalf of Anthony Kim
Misty Parsons
Kathy Le
Erin Burke on behalf of Izabella Isakovich
Wailed Khogali
Mike Sullivan
Michael Rosenberg
Bee Lee Soh on behalf of Anders Ross

The Board received the deputations for information.
(See Item No. 11 for minute)

1. Chief Executive Officer’s Report – January 2019 Update

The Board received the Chief Executive Officer’s Report – January 2019 Update for information. 

2. Approved Minutes of the Advisory Committee on Accessible Transit (ACAT) General Monthly Meeting for November 29, 2018

ACAT Chair Mazin Aribi introduced this item. 

Following the ACAT Chair’s comments the Board received for information the approved minutes from the Advisory Committee on Accessible Transit (ACAT) General Monthly Meeting of November 29, 2018.

Correspondence submitted by: Mazin Aribi

3. Large Litigation Matters

It is recommended that the Board:

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

Approved

4. Line 2 East Extension Property Acquisition

It is recommended that the Board:

1. Approve the recommendations set out in the Confidential Attachment; and
2. Maintain the confidentiality of the information set out in the Confidential Attachment until there has been a final determination of all property transactions and claims for compensation related to the Line 2 East Extension Project.

Approved

Correspondence submitted by: Hamish Wilson

5. Interest Arbitration Results and Non-Union Benefits/Cost of Living Adjustment

Commissioner De Laurentiis moved the following motion:

1. That the recommended general increase and benefit enhancements for salary levels 1-12 are approved. 
2. That in recognition of the unique work that is performed by non-union employees, staff are directed to report back in one year on opportunities to distinguish this group with regards to compensation and benefits.  Staff are directed to consider such application to salary levels 13-18 on a trial basis.
3. That the recommended general increase and benefit enhancements for salary levels 13-18 is approved for two years effective April 1, 2018.  Any proposed increase for April 1, 2020 or benefit amendments should be addressed in the above noted report.

The motion by Commissioner De Laurentiis was approved and the item was adopted, as amended.

6. City Council Transmittal - New Business Item 1.6 Engagement with the Province on Toronto’s Transit System

The Board received this item for information.

Correspondence submitted by: Defend Toronto, Hamish Wilson

7. Strategy for Future Wheel-Trans Taxi Service Contracts

It is recommended that the Board:

1. Receive the Strategy for Future Service Contracts for information and;
2. Approve a one-year extension to the Accessible Taxi Service Contracts to
   July 4, 2020 and;
3. Approve a one-year extension to the Sedan Meter-Based Service Contracts to July 4, 2020.

Approved

8. Financial Update for the Period Ended September 29, 2018

The Board received this item for information.

9. Diesel Fuel Contract

It is recommended that the TTC Board:

Authorize issuing a contract amendment to Suncor in the amount of $87,000,000 plus HST for the supply of diesel fuel to TTC properties, along with exercising the final contract extension option covering the period March 1 - December 31, 2019.

Approved

10. TTC 15-Year Capital Investment Plan & 2019 – 2028 Capital Budget & Plan

It is recommended that the TTC Board:

1. Receive the Capital Investment Plan, Making Headway – Capital Investments to Keep Transit Moving;
2. Direct the CEO to maintain the Capital Investment Plan on an annual basis, refining cost and schedule estimates as projects progress through stage gates;
3. Direct the CEO to begin steps required to prioritize critical base capital needs in advance of the Board’s consideration of the 2020 Capital Budget;
4. Direct the CEO to engage the City Manager to pursue a tri-party partnership between the Federal government, Provincial government and the City of Toronto for a dedicated, long-term, stable and predictable funding plan to address the TTC’s rolling stock, state-of-good-repair, capacity building, service improvement and growth needs;
5. Forward the Capital Investment Plan to the City Budget Committee and the City Manager to inform the City’s Long-term Financial Plan;
6. Approve the recommended TTC 2019-2028 Base Capital Budget & Plan of $6.453 billion as outlined in Appendix A of this report;
7. Approve the recommended TTC 2019-2028 Capital Budget & Plan of $3.832 billion for transit expansion projects including the Line 2 Subway Extension (formerly Scarborough Subway Extension), Relief Line South, Waterfront Transit and Toronto-York Spadina Subway Extension as outlined in Appendix A of this report; and
8. Forward this report to the City Budget Committee and the City Manager as the official 2019 - 2028 Capital Budget and Plan submission for the Toronto Transit Commission.

Approved

11. 2019 TTC and Wheel-Trans Operating Budgets

Chair Robinson moved the following motion:

1. The Board direct TTC staff work with Metrolinx to improve the reliability of PRESTO fare collection and minimize future lost revenue due to malfunctioning equipment. 
2. The Board direct TTC staff to develop a comprehensive strategy to improve and streamline fare collection and report back to the TTC Board with a status update in the second quarter of 2019. 
3. The Board direct TTC staff to explore and report back on fare collection strategies and alternate revenue and funding sources to avoid future fare increases, with consideration to the experiences and practices in other transit jurisdictions.
4. The Board direct TTC staff to undertake a comprehensive review of fare pricing models, including a review of best practices in other major cities, and report back to the TTC Board in the fourth quarter of 2019 with recommendations to improve the TTC's fare pricing strategy.

The motion by Chair Robinson carried.

Commissioner Karygiannis moved the following motion:

That TTC staff report back to the Commission through the planned Five Year Service and Fare Plan report in Q4 2019 on the cost implications of allowing veterans and senior citizens to ride for free during off-peak hours. 

The motion by Commissioner Karygiannis carried.

Commissioner Karygiannis moved the following motion:

That TTC staff, in consultation with the General Manager, Transportation Services, report back in Q2 2019 on the impact of Uber and Lyft on the TTC's revenues and operations.

The motion by Commissioner Karygiannis carried.

The item was adopted, as amended, as follows:

It is recommended that the TTC Board:

1. Approve the recommended 2019 TTC Conventional Operating Budget as detailed in this report, with gross expenditures of $1.911 billion, revenues of $1.289 billion and net subsidy requirement of $621.9 million, reflecting an additional $25.3 million operating subsidy over the 2018 budgeted level;
2. Approve the recommended 2019 Wheel-Trans Budget as detailed in this report, with gross expenditures of $149.0 million, revenues of $8.1 million and net subsidy requirement of $140.9 million, reflecting a reduction of $3.3 million from the 2018 budgeted level;
3. Approve a 10 cent fare increase as described in this report and Appendix C effective April 1, 2019 generating $25.8 million in passenger revenues, net of PRESTO fees;
4. Request that City Council approve a variable increase to the Transportation Services managed Lane Occupancy fee, to recover incremental costs of required additional service hours to maintain service standards resulting from lane occupancy permits;
5. Approve a 2019 year-end workforce complement of 15,951 positions as described in Appendix G; and
6. Forward this report to the City Budget Committee and the City Manager as the official 2019 Operating Budget submission for the Toronto Transit Commission.

Approved 

Correspondence submitted by: Anders Ross, Mike Sullivan, Brenda Thompson, Hamish Wilson, Jane Finch Action Against Poverty, Fred Winegust

The meeting adjourned at 5:57 p.m.