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Meeting No. 1985
Wednesday, May 27, 2015
1:00 PM

Committee Room #1
Toronto City Hall, 100 Queen Street West

Meeting No. 1985

Wednesday, May 27, 2015

A meeting of the TTC Board was held in Meeting Room B, Toronto City Hall, 100 Queen Street West, Toronto, Ontario, on Wednesday, May 27, 2015 commencing at 9:40 a.m. The meeting recessed at 9:45 a.m. to facilitate the TTC Audit Committee meeting agenda and reconvened in Committee Room 1 at 1:10 p.m. The meeting recessed at 4:05 p.m. on resolution to meet as the Committee of the Whole and reconvened at 4:50 p.m.

Present - Committee of the Whole

J. Colle (Chair), M. Adamson, R. Byers, J. Campbell, S. Carroll, V. Crisanti, G. De Baeremaeker, A. Heisey Q.C., J. Mihevc, D. Minnan-Wong (Members), A. Byford, C. Upfold, R. Leary, S. Reed Tanaka, V. Rodo, G. Shortt, J. Taylor, B. Leck, M. Roche, J. Lee, S. Sperling, K. Lee and D. McDonald.

J. Colle was in the Chair

K. Rowe (Chair’s Office) was also present.

The meeting re-convened in public at 1:10 p.m. in Committee Room 1

J. Colle (Chair), M. Adamson, R. Byers, J. Campbell, S. Carroll, V. Crisanti, G. De Baeremaeker, A. Heisey Q.C., J. Mihevc and D. Minnan-Wong (Members), A. Byford (Chief Executive Officer), C. Upfold (Deputy Chief Executive Officer & Chief Customer 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), S. Sperling (Acting Executive Director of Corporate Communications), B. Leck (Head of Legal & General Counsel), J. Lee (Head of Materials & Procurement), R. Thompson (Chief Project Manager – Scarborough Subway Extension), J. Kervin (Head of Property, Planning & Development Management), M. Stambler (Head of Strategy & Service Planning), P. Laurin (Head of Engineering), K. Watson (Acting Head of Bus Transportation), E. Wiggins (Acting Head of Wheel-Trans), V. Guzzo (Director of Property), S. Haskill (Senior Planner – Strategy & Service Planning), K. Lee (Head of Commission Services) and D. McDonald (Co-ordinator – Corporate Secretariat Services) were present.

J. Colle was in the Chair.

B. Romeo-Bheeler, Auditor General, City of Toronto, J. Shaubel, Director - Auditor General’s Office and J. Ying, Senior Audit Manager - Auditor General’s Office were also present.

Introduction of Commissioners and Declaration of Office

Chair Colle introduced Commissioners Maureen Adamson, Rick Byers, Alan Heisey Q.C., and Ron Lalonde (not present) who were appointed to the Toronto Transit Commission Board on May 5, 2015 by Toronto City Council.

Upon completion of the introductions, B. Leck, Head of Legal & General Counsel, administered the Declaration of Office to Commissioners Adamson, Byers and Heisey.

Election of Vice-Chair

Chair Colle nominated Commissioner A. Heisey to the position of Vice-Chair of the TTC Board.

On a majority vote of the members present Commissioner Heisey was declared Vice-Chair.

Declarations of Interest – Municipal Conflict of Interest Act

Nil

Minutes of Previous Meetings

Commissioner Carroll moved that the Board approve the minutes from Meeting No. 1984 and that the Chair and Chief Financial & Administration Officer be authorized to sign the same.
The motion by Commissioner Carroll carried.

Business Arising Out of the Minutes

Nil

Public Presentations

a) Request City Auditor General to Review TTC Board Decision Amending Accessible Taxi Service Contracts

Reza Hosseinioun
Wossen Million
Hillel Gudes
Ahmed Mohamed
Glenn Steeves, Co-op Cab
The Board received the deputations for information.
(See Item 11 for minute).

b) Notice of Motion – Accessible Service Taxi Contracts

Glenn Steeves, Co-op Cab

The Board received the deputation for information.

(See Item 12 for minute).

c) More Off-Peak Service: Expansion of All-Day, Every-Day Network

Brian Boehlert

The Board received the deputation for information.

(See Item 22 for minute).

d) Improvements to Overnight (“Blue Night”) Service Network

Alan Yule

The Board received the deputation for information.

(See Item 23 for minute).

e) 2016 TTC Budgets Process

Suhail Barot

The Board received the deputation for information.

(See Item 25 for minute).

Presentations/Reports/Other Business

1. Procurement Authorization – PNR Railworks Inc. – Toronto-York Spadina Subway Extension

The Board:

1. Authorized TTC staff to negotiate with PNR to have PNR assign the PNR Assets from the Ansaldo contract to the TTC for continued use by the TTC including any/all maintenance and training requirements to support the installation of the Automatic Train Control (ATC) system required for the TYSSE line.

2. Approved the recommendation as set out in the Confidential Attachment.

3. Authorized that the information provided in the Confidential Attachment is to remain confidential in its entirety as it contains information that is subject to solicitor-client privilege.

2. Presentation: TTC/Transportation Services – Joint Surface Transit Initiatives

Stephen Buckley, General Manager, Transportation Services, City of Toronto delivered a presentation entitled “TTC/Transportation Services:

Improving Surface Transit Operations”.

The Board received the presentation for information.

3. Presentation: Scarborough Subway Extension – Project Overview

Rick Thompson, Chief Project Manager, Scarborough Subway Extension, delivered a presentation on this item.

The Board received the presentation for information.

4. Procurement Authorization – Scarborough Subway Extension Station Design Services – Contract FE85-5

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

It is recommended that the Board:

1. Authorize award of Contract FE85-5 for Station Design Services for the Scarborough Subway Extension (SSE) to the following firms, in the noted upset limit amounts, in Canadian funds, both with a duration of seven years from the Notification of Award, on the basis of highest total weighted scores.

Firm Upset Limit Station

AECOM Canada Limited (Team 1) $63 Million Sheppard Avenue
AECOM Canada Limited (Team 2) $32 Million Scarborough Centre

Vice-Chair Heisey also moved the following motion:

That City of Toronto staff be requested to provide a presentation to the TTC Board on the initial environmental assessment reports on the proposed Scarborough Subway Extension, Smart Track and the Relief Line prior to those reports being submitted to the Executive Committee and Toronto City Council for consideration.

The motion by Vice-Chair Heisey carried.

Correspondence was received on this item from S. Yetman.

5. Procurement Authorization – Scarborough Subway Extension Systems Design and Management Services – Contract FE85-4

It is recommended that the Board authorize:

1. Award of Contract FE85-4 for Systems Design and Management Services for the Scarborough Subway Extension (SSE) to Parsons Brinckerhoff Halsall Inc., in the upset limit amount of $50,000,000.00, in Canadian funds, with a duration of ten years from the Notification of Award, on the basis of highest total weighted score.

Approved

6. 5 Park Home Avenue – Office Lease

It is recommended that the Board:

1. Authorize the execution of a lease agreement between Slate Toronto Core Office Inc. and Incore Equities Inc., and the Toronto Transit Commission for the lease of Suites 300 and 401 located on the third and fourth floors of 5 Park Home Avenue, Toronto for a term of ten (10) years in accordance with the terms and conditions set out in the offer to lease dated May 4, 2015 (Offer) and as summarized in this report, in accordance with the Toronto Transit Commission’s policies, and any other documents or agreements arising as a result of entry into the Offer or the lease, all on terms and conditions acceptable to the TTC’s General Counsel; and

2. Approve the expenditure of $9,410,000 plus HST for rent payments, subject to changes from current projections in the escalation of additional rent (e.g. utilities, property taxes and maintenance), in accordance with the terms and conditions of the above noted lease.

Approved

7. Lease Extension for Construction Office – 1 Yorkdale Road

It is recommended that the Board:

1. Authorize the execution of a lease extension and amendment agreement between Yorkdale Shopping Centre Holdings Inc. and the Toronto Transit Commission for the lease of Suite 201 located on the second floor of 1 Yorkdale Road for a term of five (5) years in accordance with the terms and conditions set out in the “Proposal to Amend and Extend the Lease dated May 15, 2009 for the Lease of Suite No. 201, 1 Yorkdale Road, Toronto, Ontario (the “Lease”)” dated February 10, 2015 (Offer) and as summarized in this report, and any other documents or agreements arising as a result of entry into the Offer, all in accordance with the Toronto Transit Commission’s policies and on terms and conditions acceptable to the TTC’s General Counsel; and

2. Approve the expenditure of funds for:

a. the payment of rent in accordance with the terms and conditions of the above noted lease estimated in the amount of $422,407.00 (plus HST) subject to changes from current projection in the escalation of additional rent (e.g. utilities, property taxes and maintenance); and
b. leasehold improvements estimated in the amount of $58,500.00 (including all fees and taxes).

Approved

8. 3080 Yonge Street – Entrance Connection to Lawrence Station

It is recommended that the Board:

1. Approve, in principle, the proposed renovations to the Lawrence Subway Station main entrance and the new entrance connection between the building located at 3080 Yonge Street and Lawrence Subway Station;

2. Authorize the execution of an entrance connection agreement in accordance with the Toronto Transit Commission’s Entrance Connection Policy, and any other agreements arising as a result of the entrance connection, all on terms and conditions acceptable to the TTC’s General Counsel.

Approved

9. Auditor General’s Report – TTC – Results of 2015 Follow-Up of Previous Audit Recommendations

The Board received the Auditor General’s Report entitled “Results of 2015 Follow-Up of Previous Audit Recommendations”.

Chair Colle subsequently moved the following motion:

That the role of the TTC Audit Committee be expanded to incorporate enterprise risk management (ERM) and that the committee be re-named the Audit & Risk Management Committee. In addition, the TTC Board establish a new committee to be named the Human Resources & Labour Relations Committee.

The motion by Chair Colle carried.

Prior to concluding with this item, Commissioner De Baeremaeker advised the Board of his intention to step down from the Audit & Risk Management Committee. The Board accepted Commissioner De Baeremaker’s resignation and appointed Commissioner Byers as his replacement.

10. Auditor General’s Report – Continuous Controls Monitoring Program – 12-Month Review of Employees Overtime and Related Expenses, 2014

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

“It is recommended that the Board:

1. Forward the Auditor General’s Report to the next Audit Committee meeting of the City of Toronto”.

The Board also adopted the following recommendations from the TTC Audit Committee and directed that the subject report be brought back to the Human Resources & Labour Relations Committee:

That TTC staff be requested to report in the next 12 months on:

a) The benefits in workforce flexibility of having part-time workers;
b) The possibility of a CBA change whereby prequalification for overtime is tied to and acceptable attendance record; and
c) How the CBA can be revised to incorporate the methods used in the Employment Standards Act to calculate total allowable overtime.
Commissioner Mihevc moved the following motion:
i) That staff be requested to report back in a stand-alone report in the first quarter of 2016 on overtime results in 2015.
The Board adopted the motion by Commissioner Mihevc and directed that the subject report be brought back to the Audit & Risk Management Committee.

11. Request City Auditor General to Review TTC Board Decision Amending Accessible Taxi Service Contracts (Deferred from the March 26, 2105 Board Meeting)

During public discussion on this item Commissioner Campbell moved that the Board recess as the Committee of the Whole to receive advice that is subject to solicitor-client privilege.

Commissioner Campbell’s motion carried and the Board moved in-camera for the stated purpose at 4:05 p.m.

The Board reconvened in public at 4:50 p.m.

Commissioner De Baeremaeker moved receipt of the item.

The motion by Commissioner De Baeremaeker carried.

12. Notice of Motion – Accessible Service Taxi Contracts

During public discussion on this item Commissioner Campbell moved that the Board recess as the Committee of the Whole to receive advice that is subject to solicitor-client privilege.

Commissioner Campbell’s motion carried and the Board moved in-camera for the stated purpose at 4:05 p.m.

The Board reconvened in public at 4:50 p.m.

Commissioner De Baeremaeker moved receipt of the item.

The motion by Commissioner De Baeremaeker carried.

Correspondence was received on this item from M. Binetti (Affleck Greene McMurtry).

13. PricewaterhouseCoopers LLP Audit Results Report on the Toronto Transit Commission Consolidated Financial Statements for the Year-Ended December 31, 2014

It is recommended that the Board:

1. Receive the report
2. Approve forwarding a copy of the report to the City Clerk for appropriate handling.

Approved

14. Draft Consolidated Financial Statements of Toronto Transit Commission for the Year-Ended December 31, 2014
It is recommended that the Board

1. Approve the report; and,

2. Approve forwarding a copy of the approved consolidated financial statements to the City Clerk for appropriate handling.

Approved

15. 2014 Capital Budget Technical Adjustments

It is recommended that the Board:

1. approve the technical budget adjustments as outlined in Appendix A to reflect the deferral of $27.561 million in the approved 2014 TTC Capital to future year cash flow commitments (including related funding impacts) with zero impact to project approval and debt;

2. approve 2014 funding source modifications outlined in Appendix A as follows: an increase of $0.265 million in Provincial Gas Tax Funding (PGT) Reserve Funds XR3018; an increase of $4.068 in 2014 Metrolinx-Move Ontario Reserve Funds XR3025; a reduction in the Federal Gas Tax (FGT) by $2.166 million; the deferral of Provincial Canadian Strategic Infrastructure Fund (CSIF) Reserve Funds XR3020 of $15.330 million and TTC Depreciation of $16.158 million to future years;

3. approve an amendment to the Transit Priority Project (Program 9.2) by adding back the 2014 cash flow and project approval of $1.760 million to be fully funded by Development Charges Reserve Funds (XR2024 and XR2110) as shown in Appendix A attached; and,

4. forward this report to the City of Toronto for Council approval.

Approved

16. Procurement Authorization – Structural Assessment and Design Services Triennial Contract G85-328G

It is recommended that the Board authorize:

1. Termination of Contract G85-328C with URS for Structural Assessment and Design Services Triennial in the upset limit amount of $1.65M and transfer of active assignments to Contract G85-328B with AECOM as a result of a merger between the two firms.

2. Award Contract G85-328G for Structural Assessment and Design Services Triennial to Parsons Brinkerhoff Halsall Inc. in the upset limit amount of $1.65M for a contract term to commence upon notification of award to December 9, 2017.

Approved

17. TTC Pension Fund Society and TTC Sick Benefit Association Bylaw Amendments

It is recommended that the TTC Board approve:

1. The TTC PFS Bylaw amendments, attached to this report as Appendix A.

2. The TTC Board appoint James Clarkson, Director Pension Accounting, as Treasurer/Director of the TTC Sick Benefit Association.

Approved

18. TTC Pension Fund Society 2015 Annual General Meeting Newsletter

The Board received for information the TTC Pension Fund Society 2015 Annual General Meeting Newsletter.

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

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

20. Improving Transit Service Options to Major Music Festivals (Submitted by Chair Colle on behalf of Councillor Mike Layton)

The Board referred the correspondence from Councillor Layton to staff and requested a report back on the item.

21. Third-Party Assessment of Effects of Streetcar Right-of-Way on St. Clair Avenue

It is recommended that the Board:

1. Endorse the purpose and objective of the study, as described in this report, to assess the effects of the streetcar right-of-way on the St. Clair Avenue corridor;

2. Authorize staff to commence work on the study, noting that staff will report back on progress and on the selection of a consultant and associated cost to undertake the study; and

3. Forward this report to the City of Toronto City Clerk for re-direction, as appropriate.

Approved

Correspondence was received on this item from S. Yetman.

22. More Off-Peak Service: Expansion of All-Day, Every-Day Network

Chair Colle moved the following motion:

“That input and suggestions received from Councillors and Commissioners on this item be referred to staff for consideration within the $95 million funding envelope”.

The motion by Chair Colle carried.

Commissioner Crisanti moved the following motion:

“That the addition of off-peak services in support of all-day, every-day service include late-evening service on weekdays, Saturdays, and Sundays on the 96C (Tandridge – Thistledown) branch of the Wilson bus route; that the cost of this additional service be included in the $95 million additional funding which City Council approved for TTC service improvements; and that implementation of this additional service be subject to confirmation from the local Councillor to allow for public consultation, with consideration by staff to be provided no later than the July Board meeting”.

The motion by Commissioner Crisanti carried.

Commissioner Mihevc moved the following motion:

“That TTC Planning staff report back to the Board in time for the 2016 Budget process on service and cost implications to achieve:
1. Historic loading standards;

2. A system-wide headway service standard of not more than 20 minutes for buses, 10 minutes for streetcars and 5 minutes for subways (exclusive of the blue night network)”.

The motion by Commissioner Mihevc carried.

Chair Colle moved adoption of the item, as amended.

The motion by Chair Colle carried unanimously.

23. Improvements to Overnight (“Blue Night”) Service Network

Chair Colle moved the following motion:

“That input and suggestions received from Councillors and Commissioners on this item be referred to staff for consideration within the $95 million funding envelope”.

The motion by Chair Colle carried.

Commissioner Crisanti moved the following motion:

“That staff report back by the July Board meeting on the feasibility of including overnight service on the 46 Martin Grove and 45 Kipling route, and the cost of this additional service be included in the $95 million additional funding which City Council approved for, in part, TTC service improvements.

The motion by Commissioner Crisanti carried.

Chair Colle moved adoption of the item, as amended.

The motion by Chair Colle carried unanimously.

Correspondence was received on this item from:

 Councillor M. Grimes, City of Toronto
 M. Beall, B. Thompson and L.A. of Scarborough

24. Chief Executive Officer’s Report – May 2015 Update

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

25. 2016 TTC Budgets Process

Chair Colle moved that the Board establish a Budget Committee with the following members and that this item be referred to the Budget Committee to commence work on the requirements set out in the report:

Budget Committee members:

R. Byers
S. Carroll
J. Campbell
J. Colle
J. Mihevc

The motion by Chair Colle carried.

The item was adopted, as amended.

26. Leslie Barns Contracts Update

1. The Board received a confidential verbal update related to the Leslie Barns contracts.
2. Authorized that the information provided in the confidential verbal update is to remain confidential in its entirety as it contains information or communications that are subject to solicitor-client privilege.

27. Presentation: TTC Office Consolidation

Joanna Kervin, Head of Property, Planning & Development Management, delivered a presentation on this item.

The Board received the presentation for information.

28. New Business – HST/GST Payments to Suppliers who Provide Transit Operating Service

Commissioner Byers moved that the following motion be added to the agenda under New Business in accordance with Section 41(b) of the By-law to Govern Commission Proceedings.

“That staff be requested to initiate discussions with the Federal Government on the need to continue payment of HST/GST by TTC to suppliers who provide transit operating service on behalf of the TTC under a legal contract”.

The motion to add the item to the agenda carried.

The Board subsequently approved the motion by Commissioner Byers.

29. Wheel-Chair Accessible Drivers – Tax Remittance

Commissioner Minnan-Wong moved that the following motion be added to the agenda under New Business in accordance with Section 41(b) of the By-law to Govern Commission Proceedings.

“That staff be requested to report on the ability to require TTC Wheel-Chair accessible drivers to:

(a) provide an HST number; and

(b) provide proof of remittance of taxes”.

The motion to add the item to the agenda carried.

The Board subsequently approved the motion by Commissioner Minnan-Wong.

The meeting adjourned at 7:15 p.m.