FROM THE CEO: TTC Board Highlights

At this week’s Board meeting, I was thrilled to share that we officially submitted our initial application under the Canada Public Transit Fund, the first step in securing funding for new subway trains for Line 2 Bloor-Danforth. Prime Minister Justin Trudeau announced this feat yesterday at Greenwood Yard as well.

The establishment of the Fund is an example of the great progress made to advance important capital funding for public transit. It is the result of positive relationships between the Government, the TTC, and other transit agencies.

I want to thank the City of Toronto and the Province of Ontario for already committing to this project. I am optimistic that our application will be successful and that we will be able to issue the Request For Proposal for the trains this fall.

TTC employees rise to meet torrential rainfall
​Also, this week Toronto experienced an unprecedented rain event. Nearly 100 millimetres of rain fell in three hours, and 170,000 residents were left without power.

As I mentioned to our Board, managing these extreme weather events is becoming a regular part of our business. Our enterprise asset management system is one way we are looking to protect our agency from the impacts of climate change. However, as an industry, we will need to keep looking at ways to do better. As we have committed through our Corporate Plan, we are undertaking systematic climate mitigation and adaptation studies that will inform measures to harden transit infrastructure against increasingly frequent and severe weather events.

I thanked our customers for their patience. More so, my deepest thanks to all our employees who worked day and night to ensure we delivered full, regular service across our network the following morning, despite seeing many of our stations and elevators flooded.

There were many examples of our employees going above and beyond. One of these examples is from our Wheel-Trans team. Toronto Emergency Management notified us Tuesday night of a nursing home in Mississauga particularly hard hit by the storm that had more than 70 mobility-impaired people who needed to get to a location with power.

We quickly dispatched four Wheel-Trans buses to the scene. Our staff worked well past midnight with assistance from paramedics to move all the individuals. To those employees at Wheel-Trans and across the TTC – thank you for keeping Toronto moving, rain or shine.

Please see below for highlights of Commission decisions approved on July 17.

Stay safe.

Richard J. Leary
​Chief Executive Officer
​July 19, 2024

TTC Board Highlights
​TTC Board Meeting July 17, 2024

CEO Rick Leary announces TTC’s application for new subway trains
​At his final Board meeting as TTC CEO, Rick Leary proudly announced that the TTC has officially submitted its first application under the Canada Public Transit Fund. This is the first step in securing funding for new subway trains for Line 2 Bloor-Danforth. Earlier in the morning, he attended Greenwood Yard with Mayor Olivia Chow and TTC Chair Jamaal Myers for Prime Minister Justin Trudeau’s announcement that the Government of Canada would begin accepting applications for the Fund on July 17.

2025 Capital Budget Outlook: Prioritizing TTC Asset State of Good Repair
​Board members approved a 2025 Capital Budget Outlook report that prioritizes TTC Asset State of Good Repair (SOGR) to keep the existing system moving reliably, with the following recommendations:

• Endorse the state-of-good-repair unfunded capital requirements (as outlined in Attachment 1) as the first priority for investment utilizing new funding made available to the TTC by any order of government.

• Forward this report to members of City Council, Government of Canada, and Province of Ontario to provide insight into the immediate critical capital priorities for the TTC.

The Board also passed a motion requesting the TTC CEO to report to the Board by Q1 2025 on the following:

• An update on identified current and long-term plans to harden infrastructure from risks associated with heavy rain events.

• Details and lessons learned from the July 16, 2024 storm and other heavy rain and flooding events, including identification of the highest risk locations.

• An update on the TTC’s emergency plans for heavy rain and flooding events, including decision-making, actions, communications, and temporary redeployment of resources.

• Information for consideration on the latest climatic data and trends to help inform planning.

• Integration with City of Toronto plans and processes, the City of Toronto Office of Emergency Management, Toronto Water, and other transit agencies that connect with the TTC.

The 2024-2038 Capital Investment Plan (CIP) identifies $47.9 billion in capital requirements across all modes and project categories. The 2024-2033 Capital Budget and Plan allocated $12.4 billion in funding. Approximately $35.5 billion is unfunded over 15 years, averaging at approximately $2.3 billion annually for all project categories in the CIP. Of the total $47.9 billion identified over 15 years, approximately 46% of the plan or $21.8 billion is associated with health, safety, legislated and SOGR. Of this category:

• Approximately $13.5 billion is unfunded over the next 15 years.

• Nearly half ($6.3 billion) of the SOGR unfunded amount is associated with Bus and Wheel-Trans modes;

• $1.52 billion unfunded within the subway program is associated with the 55 Line 2 replacement trains (Provincial funding is not reflected in the CIP as conditional on matching Federal share to be confirmed).

An estimated $13.5 billion over the next 15 years is unfunded, with immediate funding needed for subway and bus fleet replacement, and midlife overhauls across all fleet modes. Key subway infrastructure SOGR programs also have priority needs, such as facilities and systems. To address the TTC’s highest critical SOGR needs the following is required:

• Ensure municipal matching funding is in place to leverage opportunities for intergovernmental funding under the new federal Canada Public Transit Fund or other grant programs.

• Secure required funding to uphold the SOGR needs of the TTC including, but not limited to fleet replacement.

• Prioritization of critical asset SOGR work within capital co-ordination efforts with the City of Toronto.

The TTC will continue to make every effort to ensure the effective utilization of limited funds available to address the highest priority needs of the TTC. The information within the report will be used to guide future recommendations to the Board on any additional funding made available to the TTC by the City or other orders of government as part of the 2025 budget process.

Fare Compliance Action Plan
​The TTC Board endorsed the Fare Compliance Action Plan with the following recommendations:

• Endorse the Fare Compliance Action Plan as outlined in the report, comprising of the following areas of focus: Education, Environment. Enforcement and Equity.

• Direct TTC staff report back to the Audit and Risk Management Committee with a status update on the Fare Compliance Strategy and key directions by Q1 2025, and the broader Fare Compliance Strategy and key directions by Q4 2025.

• Receive for information the TTC staff report on the status of the recommendations from the 2019 Auditor General’s Phase One Fare Evasion Report (as outlined in Attachment 2) with the expectation of receiving further progress semi-annually.

• That TTC staff report back to the September TTC Board meeting with an action plan by the end of 2024 to:

   - Keep crash gates closed, except when they are opened by a Collector for a patron who has paid their fare, which will save $14.2 million/year and requires those who want to pay a reduced/concession fare to get a PRESTO card, which can be done online, and will allow them the two-hour transfers;

   - Phase out cash fares at stations and legacy fare media on all modes;

   - Strategies to count cash fares on buses; and

   - Phase out acceptance of undated Child cards, which the audit showed are almost always used fraudulently.

The Board also passed a motion directing staff to:

• Report back to the TTC Board in Q1 2025 on the development of a system that includes first-pay and the issuance of cautions, a progressive fine schedule, and, in consultation with CUPE Local 5089 and ATU Local 113, a strategy to respond to customers who are non-compliant.

• Develop and implement education and advertisement campaigns by the end of Q3 2024 on:

   - The benefits of the PRESTO mobile application, such as the ability to load funds in the application; and

   - “Tap to Transfer”.

The Fare Compliance Action Plan includes two phases. Phase One includes 49 Immediate Response Action Items, being delivered through existing TTC resources in four key areas: Education, Environment, Enforcement, and Equity. The TTC’s initial efforts have focused on reinforcing the environment; increasing staff presence through strategic deployment; and raising customer awareness of the consequences of non-payment of fares.

Phase Two initiatives have commenced. This phase focuses on developing a broader Fare Compliance Strategy, including: further benchmarking and engagement with other transit authorities; assessing key matters that examine the implications of system-wide fare compliance strategies on service delivery and customer experience; and exploring the use of technology and other innovation opportunities.

TTC’s Partnership Approach to Community Safety, Security and Well-being on Public Transit Update
​Board members reaffirmed its support for the TTC’s multidisciplinary approach to managing community safety and well-being issues on the system. The report also recommended TTC staff, in consultation with the City’s Toronto Shelter and Support Services, to report back by October 2024 on options to reduce dependence on the TTC transit network for shelter during the 2024/2025 winter season.

The TTC is actively collaborating with the City of Toronto and external partners on plans for the next winter season, including a further assessment of the feasibility of continuing the Transport Bus Initiative, while pursuing alternatives to using the transit network and vehicles as shelter.

The Board also passed a motion directing staff to:

• Establish, in consultation with City of Toronto staff by the end of Q4 2024, a permanent System Safety and Well-being Advisory Committee, which includes residents with current or recent lived experience using public transit, advocates, representatives from the TTC’s labour unions, and experts to advise on the development, implementation, evaluation, and ongoing performance monitoring of the 5-Year Community Safety, Security and Well-being Plan.

• Develop, as part of the TTC’s 5-Year Community Safety and Security Plan, as per City Council Transmittal – EX3.13 Community Safety Issues and Response, dated June 12, 2023, a comprehensive 5-Year Well-being Strategy, which thereafter shall be referred as the 5-Year Community Safety, Security and Well-being Plan that includes actions, targets and measurable impacts and an integrated model of customer safety and well-being functions performed by Fare Inspectors, Special Constables, Community Safety Ambassadors and Customer Service Agents.

• Develop and implement a campaign by the end of Q3 2024 that educates Torontonians about the improvements to safety on the TTC.

• Forward a copy of the report, “Update on TTC’s Partnership Approach to Community Safety, Security and Well-being on Public Transit” to City Council to highlight the safety improvements on the TTC.

Transit Network Expansion Update
​The TTC Board received a seventh update report on the progress of transit projects to expand the TTC network, with the following recommendations:

• Receive this report as a general update on transit expansion projects.

• Subject to the City of Toronto entering into the Subway Program Agreement in Principle, the Board authorize the TTC Chief Executive Officer, or designate, to negotiate and execute any such necessary ancillary or related agreements, amendments and renewals with any other relevant parties, including a Subway Main Agreement, for the implementation of the Subway Program, all substantially in accordance with the Subway Program Agreement in Principle, in a form satisfactory to TTC General Counsel.

• Subject to the City of Toronto entering into the Subway Program Agreement in Principle, the Board authorize the TTC Chief Executive Officer to negotiate the Operations and Maintenance Agreement(s) for the Subway Program with any other relevant parties and report back to the Board on recommended terms and conditions for Board approval.

Transit expansion projects include:

• Provincial LRT Program: Line 5 Eglinton and Line 6 Finch West.

• Provincial Priority Subway Program: Yonge North Subway Extension project (Line 1 Yonge Extension); Scarborough Subway Extension project (Line 2 East Extension); Ontario Line project (which will become the new Line 3); and Eglinton Crosstown West Extension project (Line 5 Eglinton West Extension).

• City Priority Transit Expansion Projects: Eglinton East LRT; Waterfront East LRT; RapidTO – Bus Rapid Transit (BRT) and Surface transit priority measures; Durham-Scarborough BRT; and Multiregional Dundas BRT.

Procurement Authorization – Supply of Engines for 2025 Bus Rebuild Program
​Board members approved the award of a contract worth $11,822,868.09 (inclusive of HST and core charges) to City View Bus Sales and Service Ltd. for the supply of 170 Cummins factory-manufactured engines for the TTC’s Nova 12-metre (40-foot) buses on the basis of the lowest-priced compliant bid received.

All 170 Cummins-manufactured engines acquired through this procurement will be used for bus overhauls scheduled to be completed in 2025. The 170 engines will be delivered in 2024 and 2025 to meet the rebuild production schedule. The TTC performs annual bus midlife overhauls at Duncan and Harvey shops. This includes the replacement of the engine assembly.

Decommissioned Buses – Responses to TTC Board Motions
​Commissioners received for information a report addressing motions adopted at the TTC Board Meeting on December 20, 2023, with respect to a report on the sale and removal of TTC buses. The motions relate to the following matters:

• The feasibility of utilizing decommissioned buses on a temporary basis as mobile warming and/or cooling centres, with operating costs to be borne by Shelter, Support and Housing Administration.

• To issue a publicly advertised Request for Expression of Interest to identify potential parties who will reuse, repair and/or refurbish TTC decommissioned buses to prolong the useful life of these assets and their contribution to the circular economy.

• Authorizing staff to sell remaining decommissioned TTC buses for recycling/scrap only after making reasonable efforts to identify parties that will reuse, repair and/or refurbish the buses.

• To retain one Orion bus for historical purposes, and reach out to the Halton County Radial Railway Museum to determine their interest in obtaining a bus.

In addition to the motions by the TTC Board, City Council requested that City agencies and corporations, including the TTC, consider the donation of surplus or end-of-life vehicles to the Government of Ukraine for humanitarian purposes. TTC staff is working with City staff to review policies with respect to the donation of assets locally and internationally.

Next meeting of the TTC Board
​The next regular scheduled TTC Board Meeting will be on Tuesday, September 24.

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