Budget Committee Meeting - September 6, 2016

That the Committee recess as the Committee of the Whole to deal with litigation or potential litigation matters, labour relations, employee negotiations, security of the property, and to receive advice which is subject to solicitor client privilege.

Nil

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.

1. Capital Prioritization Process (For Action)
2. Federal Public Transit Infrastructure Fund (PTIF) (For Information)
3. Capital Budget: Capacity-to-Spend Analysis (For Action)
4. Proposed 2017-2026 TTC Capital Budget (For Action)
   • Presentation

A. Byford (Chief Executive Officer), V. Rodo (Chief Financial & Administration Officer),  J. Taylor (Chief of Staff), S. Reed Tanaka (Chief Capital Officer), R. Leary (Chief Service Officer), C. Upfold (Deputy CEO & Chief Customer Officer), M. Palmer (Acting - Chief Operating Officer), R. Trentadue (Acting – Deputy Chief Operating Officer), J. Imbrogno (Director – Capital Accounting), B. Case (Senior Advisor – Strategic Initiatives), K. Lee (Head – Commission Services), D. McDonald (Co-ordinator – Secretariat Services) and M. Balanco (Administrator – Secretariat Services) were present.

External 
K. Lillyman (Chair’s Office) and D. Magisano (Mayor’s Office) were also present.

J. Colle was in the Chair.

Nil

Commissioner Byers moved that the Committee approve the minutes of the meeting held on Monday, November 9, 2015.

The motion by Commissioner Byers carried.

Nil

Nil

1. Capital Prioritization Process

V. Rodo, Chief Financial & Administration Officer delivered a PowerPoint presentation on this item.

The Committee received the presentation for information and approved the recommendations in the staff report, as follows: 
“It is recommended that the Budget Committee:

1) Approve the prioritization process as described in this report;

2) Request staff to apply the prioritization process to 2017-2026 unfunded projects and submit the prioritized list as an input to the 2018-2027 budget process; and

3) Request staff report back on any significant changes to the prioritization process in advance of the 2018-2027 budget cycle”.

2. Federal Public Transit Infrastructure Fund (PTIF)

The Budget Committee received this item for information. 
3. Capital Budget: Capacity-to-Spend Analysis

Chair Colle moved adoption of the recommendations in the staff report, as follows:

“It is recommended that the Budget Committee:

1) Endorse the concept of a capacity-to-spend reduction target in the order of $850 million to be applied to the 2017-2026 capital budget; 

2) Request staff apportion the targeted reductions program-by-program and resubmit the revised cash flows directly to City Financial Planning; 

3) Request staff undertake annual reviews of the organization’s capacity-to-spend and, if required, recommend adjustments to the reduction through the annual budget process; and 

4) Request staff report annually to the Board through the budget process on the status of corrective actions taken to increase spending capacity and continue to report quarterly on the capital burn rate through the CEO report”.

Commissioner Mihevc requested a recorded vote on the motion.

In favour: Chair Colle, Commissioner Byers, Commissioner Campbell and Commissioner Carroll

Opposed: Commissioner Mihevc

The motion to adopt the recommendations in the staff report carried on a vote of 4 to 1.

Commissioner Byers moved the following ancillary motion:

“That the Procurement Working Group review the reasons for past unspent capital projects using specific projects as examples”. 
Commissioner Mihevc requested a recorded vote on the motion.

In favour: Chair Colle, Commissioner Byers, Commissioner Campbell and Commissioner Carroll.

Opposed: Commissioner Mihevc

The motion by Commissioner Byers carried on a vote of 4 to 1.

Chair Colle moved the following ancillary motion:

“That TTC staff obtain the City of Toronto’s capacity-to-spend rate for comparison purposes”.

Commissioner Mihevc requested a recorded vote on the motion.

In favour:  Chair Colle, Commissioner Byers, Commissioner Campbell and Commissioner Carroll. 
Opposed: Commissioner Mihevc The motion by Chair Colle carried on a vote of 4 to 1.

4. Proposed 2017-2026 TTC Capital Budget

V. Rodo, Chief Financial & Administration Officer delivered a PowerPoint presentation on this item.

The Committee received the presentation for information and approved the recommendations in the staff report, as follows:

“It is recommended that the Budget Committee:

1) Receive and endorse in principle the proposed 2017-2026 TTC Capital Budget (including the Toronto-York Spadina Subway Extension and Scarborough Subway Extension) as outlined in this report for submission to the TTC Board for consideration at its meeting of September 28, 2016. Any further changes will be submitted directly to the Board”.

The meeting adjourned at 4:08 p.m.