Board Meeting - January 9, 2023 - Special

• Chair - Councillor Jon Burnside
• Councillor Paul Ainslie
• Joanne De Laurentiis (Citizen)
• Councillor Stephen Holyday
• Fenton Jagdeo (Citizen)
• Ron Lalonde (Citizen)
• Councillor Nick Mantas
• Councillor Chris Moise
• Julie Osborne (Citizen)

The public may submit written comments or register to speak to the TTC Board. The public may speak to the TTC Board in person or by video conference.

Requests to speak must be registered by noon of the business day preceding meeting day by submitting a request to commissionservices@ttc.ca Those who register to speak will be provided with instructions on how to participate in the meeting.

• Public Presentations

Item 1: 2023 TTC Conventional and Wheel-Trans Operating Budgets (For Action)

• Staff report for Item 1
• Presentation for Item 1
• Decision for Item 1

Correspondence Submitted by: Alan Yule, Edward Zaretsky, Lauren McVittie, Mark Cretu and Jack Tattersall, Alison Stewart, Hamish Wilson, Ride Fair and Shelagh Pizey-Allen

Item 2: TTC 15-Year Capital Investment Plan, Real Estate Investment Plan Update and 2023 – 2032 Capital Budget & Plan (For Action)

• Staff report for Item 2
• Presentation for Item 2
• Decision for Item 2

Correspondence Submitted by: George Bell, Michael McCamus and Hamish Wilson

Meeting No.:

2068

Meeting Date:

Monday, January 9, 2023

A hybrid meeting of the TTC Board was held in Committee Room 1, Toronto City Hall, 100 Queen Street West, Toronto, Ontario on Monday, January 9, 2023 commencing at 10:01 a.m.

Attendance

Commissioners:

J. Burnside (Chair), P. Ainslie, J. De Laurentiis, S. Holyday, F. Jagdeo, R. Lalonde, N. Mantas, C. Moise, J. Osborne

Staff:

R. Leary (Chief Executive Officer), M. Atlas (General Counsel), K. Campbell (Chief Diversity and Culture Officer), G. Downie (Chief Capital Officer), S. Haskill (Chief Strategy & Customer Officer - Acting), B. Hasserjian (Chief Safety Officer), M. Hopkins (Director, Human Resources Strategy and Client Services), J. La Vita (Chief Financial Officer), F. Monaco (Chief of Operations and Infrastructure), N. Poole-Moffatt (Chief of Corporate Affairs), J. Taylor (Chief of Staff), R. Wong (Chief Transportation & Vehicles Officer), B. Case (Executive Director - Innovation & Sustainability), A. Cassar (Director - Budgets, Costing and Financial Reporting), M. Del Vecchio (Capital City Projects Coordinator), A. Gibson (Head - Strategy and Foresight), S. Green (Senior Communications Specialist - Media & Issues Management), J. Imbrogno (Director - Capital Accounting), P. Kraft (Head of Property, Planning and Development), M. Lipkus (Deputy Director - Third Party Planning), M. Mis (Head - Service Planning and Schedules), J. Montagnese (Executive Director), W. Reuter (Head - Research and Analytics), D. Shanmuganayagam (Head of Information Technology Services), K. Thorburn (Head of Corporate Initiatives), C. Finnerty (Director - Commission Services) and J. Ishak (Administrator - Secretariat Services), T. Khan (Mayor’s Office) and J. Murphy (Chair Burnside’s Office).

J. Burnside was in the Chair.

Land Acknowledgement

Chair Burnside requested C. Finnerty to acknowledge that the TTC Board was meeting on the traditional territory of many nations including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples and is now home to many diverse First Nations, Inuit and Métis peoples. C. Finnerty also acknowledged that Toronto is covered by Treaty 13 signed with the Mississaugas of the Credit.

Declaration of Interest – Municipal Conflict of Interest Act

Nil

Public Presentations

Chair Burnside moved that the TTC Board, in accordance with the waiver of rules provisions 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 Chair Burnside carried.

Item No. 1. 2023 TTC Conventional and Wheel-Trans Operating Budgets
Alan Yule
Adam Roy Cohoon
Jennifer Conroy
Patrick McCartney
Vincent Puhakka
Calum Houston
Debbie Solar
Colby Badhwar
Shelagh Pizey-Allen
August Puranauth
Ellen Peters
Zhongjian Cheng
Bob Murphy
Shah Mohiuddin
Arushi Nath
Brad Pearson
Ezra De Leon
Fred Spek
Krissan Veerasingam
Subhanya Sivajothy
Alison Stewart
Megan Davies
Almasi Mathu
Cristina Costa

The Board received the deputations for information. (See Item No. 1 for minute)

Presentations/Reports/Other Business

1. 2023 TTC Conventional and Wheel-Trans Operating Budgets

J. La Vita delivered a presentation on this item. Commissioner Moise moved the following motion and requested that the TTC Board vote separately on each Part of the motion.

Chair Burnside ruled that the Board would vote separately on each Part of the motion.

1. That Recommendation 4 be struck out and that the recommended 2023 TTC Conventional Operating Budget as set out in Recommendation 1 be amended accordingly.

Recommendation 4:

4. Approve a 10-cent fare increase, on adult and youth single fares only, excluding fares for seniors, fair pass riders and all passes, as described in this report and outlined in Appendix C, effective April 3, 2023 generating $16.1 million in passenger revenues, net of PRESTO commissions.

Part 1 of the Motion by Commissioner Moise Lost.

2. Request TTC staff to restore transit service hours to 100% of pre-pandemic service hours as represented by the “Budget - November 2022 (Pre-COVID proxy)” on page 26, Table 3 “2023 Service by Mode” of this report, and that the recommended 2023 TTC Conventional Operating Budget as set out in Recommendation 1 be amended accordingly.

Part 2 of the Motion by Commissioner Moise Lost.

3. Request TTC staff to prepare a budget briefing note for the February 14 special meeting of City Council with a detailed explanation for the proposed service hour changes, with a preliminary list of potential changes to routes including the level of service hour changes – including a specific route-by-route, time-period-by-timeperiod analysis, along with ridership data to support these changes.

Part 3 of the Motion by Commissioner Moise Lost.

4. Request TTC staff to prepare a budget briefing note for the February 14 special meeting of City Council with an analysis of consulting and labour arbitration costs for the past 10 years.

Part 4 of the Motion by Commissioner Moise Lost.

5. Request TTC staff to include in all future budget submissions, a detailed explanation for the proposed service hour changes, with a preliminary list of potential changes to routes including the level of service hour changes – including a specific route-by-route, time-period-by-time-period analysis, along with ridership data to support the changes. TTC Board Minutes Meeting No. 2068 Monday, January 9, 2023

Part 5 of the Motion by Commissioner Moise Lost.

Commissioner Jagdeo moved the following motion:

That the TTC Board request staff to undertake the development, presentation, and funding options for a strategic marketing plan. The plan should communicate to existing and prospective customers, funders, and the public at large, the benefits of transit with the goal of retaining and increasing ridership and transit investments in order to create jobs, reduce traffic congestion, improve air quality and health outcomes, reduce greenhouse gas emissions, and improved equity for all.

The motion by Commissioner Jagdeo carried.

Commissioner Holyday moved the following motion: That the TTC Board request the CFO to draw the Fair Pass Program funding primarily from the “other revenue” category, and secondarily from other sources only as necessary.

The motion by Commissioner Holyday lost.

Chair Burnside moved the report recommendations.

Commissioner Moise requested that the TTC Board vote separately on each recommendation.

Chair Burnside ruled that the Board would vote separately on each recommendation.

It is recommended that the TTC Board:

1. Approve the recommended 2023 TTC Conventional Operating Budget of $2.237 billion in gross expenditures, $1.048 billion in revenues and a net funding requirement of $1.189 billion, inclusive of the $366.0 million TTC Conventional COVID-19 financial impact, as detailed in this report.
   Recommendation 1 carried.
2. Approve the recommended 2023 Wheel-Trans Budget of $142.8 million in gross expenditures, $6.5 million in revenues and a net funding requirement of $136.3 million, inclusive of the $0.4 million Wheel-Trans COVID-19 financial impact, as detailed in this report.
   Recommendation 2 carried.
3. Request the Provincial and Federal governments to continue to invest in public transit by:
   a. Providing relief to offset the financial impacts of COVID-19 recovery, which are estimated to be $366.4 million in 2023, with forecasted impacts expected into 2024 and 2025; and
   b. Continuing to work with the TTC and the City of Toronto to develop a longterm sustainable funding model for public transit.
   Recommendation 3 carried.
4. Approve a 10-cent fare increase, on adult and youth single fares only, excluding fares for seniors, fair pass riders and all passes, as described in this report and outlined in Appendix C, effective April 3, 2023 generating $16.1 million in passenger revenues, net of PRESTO commissions.
   Recommendation 4 of the item carried.
5. Approve a 2023 year-end workforce complement of 16,787 positions, reflecting an increase of 36 operating positions and an increase of 240 positions for capital project delivery, as described in Appendix D.
   Recommendation 5 carried.
6. Forward this report to the City Budget Committee and the City Manager as the official 2023 Operating Budget submission for the Toronto Transit Commission.
   Recommenation 6 carried.

Amended

Correspondence submitted by: Alan Yule, Edward Zaretsky, Lauren McVittie, Mark Cretu and Jack Tattersall, Alison Stewart, Hamish Wilson, Ride Fair and Shelagh Pizey-Allen

2. TTC 15-Year Capital Investment Plan, Real Estate Investment Plan Update and 2023 – 2032 Capital Budget & Plan

J. La Vita delivered a presentation on this item.

Commissioner Holyday moved the following motion:

That the TTC Board request the CEO to provide regular updates to the Board on the State of Good Repair backlog in the CEO’s report, identifying impacts to:

1. Safety;
2. Service Levels;
3. Service reliability;
4. Environmental impacts;
5. Operating cost premiums; and
6. Cost coordination opportunities with other stakeholders.  

The motion by Commissioner Holyday carried.

Commissioner Moise moved the report recommendations, as follows:

It is recommended that the TTC Board:

1. Endorse the TTC 2023-2037 Capital Investment Plan of $38.046 billion, as outlined in Appendix A of this report;
2. Endorse the TTC 2023-2037 Real Estate Investment Plan Update, including the implementation timeline, as outlined in Appendix B of this report;
3. Approve the staff recommended 2023 Capital Budget of $1.253 billion and future year planned estimates of $11.087 billion, for a total TTC 2023-2032 Base Capital Budget and Plan of $12.340 billion, as outlined in Appendix C of this report;
4. Approve the staff recommended TTC 2023 Capital Budget of $88.186 million and future year planned estimates of $62.780 million, for a total TTC 2023-2032 Capital Budget and Plan of $150.966 million for Transit-Related Expansion Projects including the completion of the remaining scope for the Toronto-York Spadina Subway Extension, the SRT Life Extension Overhaul and Line 3 bus replacement plan; and the Waterfront Transit planning, also outlined in Appendix C of this report;
5. Approve a 2023 year-end capital complement of 2,910 positions, reflecting an increase of 240 positions for capital project delivery as summarized in Appendix F of this report;
6. Renew its delegated authority to the TTC Chief Executive Officer to:
   a. Enter into contribution agreement(s), where required, with government partners to receive any net new funding / financing for the TTC’s Green Bus program; and
   b. Subject to commitment of matching funds from provincial and/or federal government partners, amend existing and pending contract(s) to increase the eBus procurement quantity and associated infrastructure works in proportion to any additional funds committed;
7. Endorse the TTC’s request to the provincial and federal government for ongoing intergovernmental funding support to address the TTC’s unfunded state of good repair backlog as identified in the 2023-2037 Capital Investment plan, including as priority, to provide provincial and federal matching funds totalling $1.7 billion for the new subway train procurement, and up to $2.4 billion in funding for the requisite Train Maintenance Storage Facility (TMSF);
8. Forward this report to the City Budget Committee and the City Manager as the official 2023-2032 Capital Budget and Plan submission for the Toronto Transit Commission; and,
9. Forward the 2023-2037 Real Estate Investment Plan Update to CreateTO and City Real Estate Management staff for their information.

The motion by Commissioner Moise carried and the item was adopted, as amended.

Amended

Correspondence submitted by: George Bell, Michael McCamus and Hamish Wilson

The meeting adjourned at 3:37 p.m.