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Meeting No. 1981
Thursday, March 26, 2015

A meeting of the TTC Board was held in Council Chamber, Toronto City Hall, 100 Queen Street West, Toronto, Ontario, on Thursday, March 26, 2015 commencing at 9:40 a.m. The meeting recessed at 12:15 p.m. and reconvened as Committee of the Whole at 1:30 p.m.

Present - Committee of the Whole

J. Colle (Chair), M. Adamson (Vice-Chair), J. Campbell, S. Carroll, V. Crisanti, G. De Baeremaeker, N. Di Donato, A. Heisey Q.C., J. Mihevc, D. Minnan-Wong and A. Virmani (Members), A. Byford, R. Leary, S. Reed Tanaka, V. Rodo, G. Shortt, J. Taylor, C. Upfold, G. Piemontese, B. Leck, B. Ross, J. Lee, T. Baik, J. Kervin, M. Atlas, M. Palmer, P. Tomlin, J. Chamberlain, I. Jordan, K. Lee and D. McDonald.

J. Pennachetti (City Manager), J. Farag (Executive Director – Corporate Finance, City of Toronto), L. Robertson (Mayor’s Office) and K. Rowe (Chair’s office) were also present.

The meeting re-convened in public at 3:45 p.m.

J. Colle (Chair), M. Adamson (Vice-Chair), J. Campbell, S. Carroll, V. Crisanti, G. De Baeremaeker, N. Di Donato, A. Heisey Q.C., J. Mihevc, D. Minnan-Wong and A. Virmani (Members), A. Byford (Chief Executive Officer), R. Leary (Chief Service Officer), S. Reed Tanaka (Acting Chief Capital 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), G. Piemontese (Chief People Officer), M. Atlas (Senior Solicitor), T. Baik (Acting Chief Project Manager – Spadina Subway Extension), B. Ross (Executive Director of Corporate Communications), B. Leck (Head of Legal & General Counsel), J. Lee (Head of Materials & Procurement), M. Palmer (Deputy Chief Operating Officer), J. Kervin (Head of Property, Planning & Development Management), I. Jordan (Manager – Bus Maintenance), K. Lee (Head of Commission Services) and D. McDonald (Co-ordinator – Corporate Secretariat Services) were present.

J. Colle was in the Chair.

J. Pennachetti (City Manager) and J. Farag (Executive Director – Corporate Finance, City of Toronto) were present for Item 4.1.

Declarations of Interest – Municipal Conflict of Interest Act

Nil

Minutes of Previous Meetings

Vice-Chair Adamson moved that the Board approve the minutes from Meeting No. 1980, Wednesday, February 25, 2015 and that the Chair and Chief Financial & Administration Officer be authorized to sign the same.

The motion by Vice-Chair Adamson carried.

Business Arising Out of the Minutes

Nil

Public Presentations

a) Toronto-York Spadina Subway Extension – Schedule and Budget Change

Brenda Thompson

Joell Ann Vanderwagen

Hamish Wilson

The Board received the deputations for information.
(See Item No. 4.1 for minute).

b) Express Bus Route Network – Study Plan

Hamish Wilson

The Board received the deputation for information.
(See Item 7.1 for minute).

Notice of Motions

Nil

Motions without Notice

Nil

Items of Which Notice has Previously Been Given

Nil

Items Deferred from Last Meeting

Nil

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

See Items 4.1, 9.1 and 9.2

2. Presentations

2.1 TTC Modernization – A System Approach

Rick Leary, Chief Service Officer delivered a PowerPoint presentation on this item.

The Board received the presentation and staff report for information.

3. Budget Matters

3.1 Chief Executive Officer’s Report – March 2015 Update

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

4. Procurement Authorizations

4.1 Toronto-York Spadina Subway Extension – Schedule and Budget Change

Andy Byford, Chief Executive Officer, provided a PowerPoint presentation on this item.

The Board received the presentation for information.

Commissioner Mihevc moved the following motion:

“It is recommended that TTC approve tendering out project management on an expedited basis (Option 2)”.
Commissioner Mihevc requested a recorded vote on this motion.

In favour: Commissioners J. Mihevc and V. Crisanti.

Opposed: Chair J. Colle, Vice-Chair M. Adamson, Commissioners J. Campbell, S. Carroll, N. Di Donato, G. De Baeremaeker, A. Heisey, D. Minnan-Wong and A. Virmani.

The motion by Commissioner Mihevc lost on a vote of 2 to 9.

Commissioner De Baeremaeker moved the following two-part motion:

Part 1:

That the following be added to the end of Recommendation No. 2 in the staff report:

“as outlined in Option 1”, so such recommendation now reads as follows:

“That the TTC Chair, Vice-Chair and CEO be delegated the authority to retain a third party project-management firm as an incentivized project manager as per the confidential recommendation to this report as Appendix A (Confidential Attachment), as outlined in Option 1”.

Part 2:

That the Board adopt the recommendations in the Confidential Attachment, as amended”.

The Board adopted Commissioner De Baeremaeker’s two-part motion.

Commissioner Campbell moved the following ancillary motion:

“That the CEO of the TTC provide a report by the fourth quarter of 2015 outlining the specific, substantive changes that will be made in the planning and project management for the Scarborough subway as compared to the Toronto-York Spadina Subway Extension”.

The motion by Commissioner Campbell carried.

Chair Colle moved adoption of the item, as amended.

Commissioner Mihevc requested a recorded vote on Chair Colle’s motion.

In favour: Chair J. Colle, Vice-Chair M. Adamson, Commissioners J. Campbell, S. Carroll, N. Di Donato, G. De Baeremaeker, A. Heisey, D. Minnan-Wong and A. Virmani.

Opposed: Commissioners J. Mihevc and V. Crisanti.

The motion by Chair Colle carried on a vote of 9 to 2.

The item was adopted, as amended.

4.2 Procurement Authorization - Consultant Design Services – Contract G85-323E

It is recommended that the Board authorize:

1. Termination of Contract G85-323C with URS for Consultant Design Services in the upset limit amount of $5M and transfer of active assignments to Contract G85-323B with AECOM as a result of a merger between the two firms.

2. Award Contract G85-323E for Consultant Design Services to Morrison Hershfield Limited in the upset limit amount of $5M for a contract term to commence upon notification of award to August 19, 2017.

Approved

5. Procurement Authorization Amendments

5.1 Procurement Authorization – Change Directive to the Toronto Rocket (TR) Supplier for the Design Provisions for Train Door Monitoring (TDM) System

Mike Palmer, Deputy Chief Operating Officer, provided a PowerPoint presentation on this item.

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

“It is recommended that:

1. The Board authorize a Change Directive to Bombardier Inc. (Bombardier), in the amount of $2,734,822.98, including taxes, for the additional engineering design to facilitate installation of TDM equipment and modification/relocation of door control systems on the TR trains for OPTO”.

5.2 Changes to the TTC Resignaling Contract

Chair Colle moved the following technical amendments to the report recommendation:

• 1a) of the recommendation in the staff report be amended from $74,580,000.00 to $77,816,090.00;

• 1b) of the recommendation in the staff report be amended from $6,203,700.00 to $800,000.00; and

• The total authorized expenditure of up to $81,810,000.00 be amended to $79,642,390.00 and a total contract value of $207,323,655.58 be
amended to $205,156,045.58.

The motion by Chair Colle carried.

The Board adopted the item, as amended.

6. Notice of Awards

Nil

7. Service Matters

7.1 Express Bus Route Network – Study Plan

It is recommended that the Board:

1. Endorse the Express Bus Route Network study plan that is presented in this report; and

2. Note that TTC staff will report back to the Board with the:

a) Phase 1 – Service Plan in October 2015

b) Phase 2 – Communications Plan in early 2016

Approved

8. Accessibility Matters

8.1 Approved Minutes of the Advisory Committee on Accessible Transit (ACAT) General Monthly Meeting for January 29, 2015

The Board received the ACAT General Monthly Meeting minutes for information.

8.2 2015 Accessibility Plan Status Report

The Board adopted the recommendation in the staff report, as follows:

“It is recommended that the Board forward this report to the City of Toronto Disability Issues Committee, the Ontario Ministry of Economic Development, Trade and Employment, and the Ontario Human Rights Commission, noting that this report fulfills the provincially-legislated requirements in the Accessibility for Ontarians with Disabilities Act, 2005 (AODA) Integrated Accessibility Standards Regulation (IASR) for an annual status report on the progress of measures taken to implement the TTC’s multi-year accessibility plan, including steps taken to comply with the IASR”.

Commissioner Mihevc moved the following ancillary motion:

“Request staff to report to the TTC Board on Q2 2015 strategies to further improve standards related to telephone trip bookings”.

The motion by Commissioner Mihevc carried.

The item was adopted, as amended.

9. Other Business

9.1 Random Alcohol and Drug Testing - Update

The Board:

1. Received the information provided in the confidential attachment; and

2. Authorized that the information in the confidential attachment is to remain confidential in its entirety as it contains information that is subject to solicitor-client privilege.

9.2 1 Carlton Street – College Station

The Board:

1. Approved the recommendations as set out in the Confidential Attachment; and

2. Authorized the public release of the confidential information contained in the Confidential Attachment once there has been a final determination of the compensation payable to the owner by the arbitration, appeal or settlement to the satisfaction of the City Solicitor.

9.3 Auditor General’s Report – Review of TTC Bus Maintenance and Shops Department, Phase Two: Non-Revenue fleet and Equipment Management and Maintenance; and Review of TTC Non-Revenue Vehicle Fuel Card Controls Need Immediate Improvement
Chair Colle moved the following motion:

“That the TTC Board direct the Chief Executive Officer to undertake the recommendations contained in the Auditor General Reports, as follows:

Review of TTC Bus Maintenance and Shops Department, Phase Two: Non-Revenue Fleet and Equipment Management and Maintenance

1. The Board request the Chief Executive Officer to review the current non-revenue vehicle and equipment fleet management structure with a view to ensuring all key fleet management functions are defined and established with adequate corporate oversight.

2. The Board request the Chief Executive Officer to consider implementing a chargeback process or other measures for non-revenue vehicle and equipment costs to help optimize use of vehicle and equipment resources by user departments and enhance accountability.

3. The Board request the Chief Executive Officer to enhance the current review and approval process for non-revenue vehicle and equipment acquisitions such that the needs, purposes, and projected usage of the requested vehicles and equipment can be adequately evaluated.

4. The Board request the Chief Executive Officer to conduct detailed reviews of utilization levels of non-revenue vehicles and equipment to identify and minimize underutilized vehicles and equipment.

5. The Board request the Chief Executive Officer to undertake an assessment of alternatives of meeting non-revenue vehicle and equipment needs prior to finalizing annual vehicle and equipment procurement decisions.

6. The Board request the Chief Executive Officer to take immediate actions to identify and prioritize the replacement of existing aging non-revenue vehicles incurring significant annual maintenance and repair costs.

7. The Board request the Chief Executive Officer to ensure that vehicle life cycle costs are actively monitored and analyzed as part of the non-revenue fleet management functions. A re-assessment of the current non-revenue vehicle replacement criteria should be undertaken to ensure the criteria are effective in preventing excessive maintenance and repair costs.

8. The Board request the Chief Executive Officer to review inventory management of non- revenue vehicles and fleet equipment to ensure the inventory is accurate, complete, and up-to-date. Steps to be taken should include but not be limited to:

a) Assigning a staff person responsible for the oversight and management of inventory;

b) Establishing clear policy and criteria defining the type and value of assets to be tracked;

c) Ensuring records kept in the Vehicle Work Order (VWO) system meet annual asset reporting requirements; and

d) Expanding the current criteria for tracking fleet equipment in VWO to establish a centralized and complete fleet equipment database.

9. The Board request the Chief Executive Officer to review the existing list of long-term rentals of non-revenue vehicles to determine whether these long-term rentals are justified and cost-effective.

10. The Board request the Chief Executive Officer to enhance current rental vehicle review and approval process by incorporating a corporate-wide review of rental vehicle needs, available vehicle resources, and opportunities for shared usage.

11. The Board request the Chief Executive Officer to review rental vehicle insurance costs provided by rental companies. A determination should be made as to whether self- insurance coverage is less costly.

12. The Board request the Chief Executive Officer to work collaboratively with the Director of the City of Toronto Fleet Services Division to determine the feasibility of issuing a joint Request for Quotation (RFQ) in future acquisition of rental vehicles.

13. The Board request the Chief Executive Officer to take steps to improve non-revenue vehicle user compliance with scheduled maintenance, including steps to address user concerns.

14. The Board request the Chief Executive Officer to ensure accurate and up-to-date non- revenue vehicle kilometrage data are obtained to facilitate effective preventive maintenance scheduling.

15. The Board request the Chief Executive Officer to improve the effectiveness of the Vehicle Work Order system for non-revenue fleet management. Steps to be taken should include but not be limited to:

a) Addressing existing preventive maintenance scheduling issues in the system;

b) Ensuring adequate system access is provided to garage management staff;

c) Re-assessing the practicality of existing data entry controls;

d) Ensuring accuracy of system generated management reports; and

e) Expanding the existing system reports to include reports on fleet management key performance indicators.

16. The Board request the Chief Executive Officer to develop and implement non-revenue fleet quality assurance processes to systematically monitor and detect repair quality issues.

17. The Board request the Chief Executive Officer to ensure adequate controls are in place at TTC garages to deter and detect ordering of non-revenue vehicle and equipment parts for non-TTC uses. Periodic reviews should be considered by TTC internal audit staff.

18. The Board request the Chief Executive Officer to take steps to shorten garage service turnaround time for non-revenue fleet by addressing issues pertaining to garage capacity, availability of technicians, parts availability and maintenance scheduling.

19. The Board request the Chief Executive Officer to shorten the period of time readying a new non-revenue vehicle for operation. Steps to be taken should include but not be limited to setting a targeted time frame and improving coordination and communication among various TTC departments.

20. The Board request the Chief Executive Officer to establish a formal warranty management process for non-revenue vehicles and fleet equipment such that warranty claims are maximized.

21. The Board request the Chief Executive Officer to ensure the non-revenue vehicle procurement process take into account the ease and practicality of warranty administration.

22. This report be forwarded to the City’s Audit Committee for information. Review of TTC Non-Revenue Vehicle Fuel Card Controls Need Immediate Improvement

1. The Board request the Chief Executive Officer to review and revise the current fuel card policy and procedures such that adequate controls are developed and implemented to facilitate effective monitoring of fuel card transactions and detection of questionable transactions.
2. The Board request the Chief Executive Officer to take the necessary steps to improve compliance with fuel card policy and procedural requirements, including but not be limited to:

a) Developing additional procedural requirements to hold user group management staff accountable for non-compliance with fuel card policies;

b) Undertaking an immediate review of active Personal Identification Numbers (PINs) to identify and cancel PINs previously assigned to employees who have since terminated their employment; and

c) Developing procedures to facilitate timely notification and cancellation of PINs upon employment termination.

3. The Board request the Chief Executive Officer to strengthen existing fuel card administration and monitoring processes by the Systems Contract and Administration Unit. Steps to be taken should include but not be limited to:

a) Ensuring the issuance of fuel cards and personal identification numbers are in accordance with the policy and procedural requirements;

b) Improving the effectiveness of transaction sample reviews by the Systems Contract and Administration Unit; and

c) Defining exception reporting requirements and providing regular exception reports to aid management review of fuel card transactions and monitoring.

4. The Board request the Chief Executive Officer to, prior to issuing TTC’s next fuel card contract in 2016, work with the Director of the City of Toronto Fleet Services Division to determine the feasibility and merits of utilizing the City’s fuel supply system including the City operated fuel stations, the City fuel card, and the radio-frequency identification technology.

5. This report be forwarded to the City’s Audit Committee for information”.

The motion by Chair Colle carried.

The item was adopted, as amended.

10. New Business

Nil

11. Correspondence

C1 – Councillor Paul Ainslie regarding the use of car share vehicles as an alternative to renting non-revenue vehicles.

The Board received the communication for information
(See Item 9.3 for minute).

C2 – TTC Audit Committee requesting the TTC Board to request the Metrolinx Board to provide details on PRESTO related financial controls.
The Board deferred the item to the next regular meeting of the Board in April.

C3 - TTC Audit Committee requesting the TTC Board to request the City of Toronto Auditor General to review Board decisions made in 2014 regarding the accessible taxi service contract.

The Board deferred the item to the May 2015 regular meeting.

C4 - Chair Colle on behalf of Councillor Janet Davis and Councillor Mary-Margaret McMahon regarding a mobility hub study in the Main Street and Danforth Avenue Area.

The Board deferred the item to the next regular meeting of the Board in April.

C5 – Hillel Gudes regarding the TTC accessible taxi service contract.

The Board deferred the communication to the May 2015 regular meeting (see also Item 11, C3).

C6 – Muhammad Bhatti regarding the TTC accessible taxi service contract.

The Board deferred the communication to the May 2015 regular meeting (see also Item 11, C3).

The meeting adjourned at 5:45 p.m.