Meeting #3 MINUTES OF THE LONDON TRANSIT COMMISSION – WEDNESDAY, MARCH 28, 2018

Meeting #3

MINUTES OF THE LONDON TRANSIT COMMISSION

HELD IN THE COMMISSION BOARDROOM AT 5:00PM

ON WEDNESDAY, MARCH 28, 2018

Those present were

Mrs. Sheryl Rooth – Chair

Mr. Dean Sheppard – Vice Chair

Mr. Jesse Helmer – Commissioner

Mr. Eric Southern – Commissioner

Absent with regret was

Mr. Phil Squire – Commissioner

Also present were

Mrs. Kelly Paleczny – General Manager

Mrs. Katie Burns – Director of Planning

Mrs. Joanne Galloway – Director of Human Resources

Mr. Mike Gregor – Director of Finance

Mr. Craig Morneau – Director of Fleet & Facilities

Mr. Shawn Wilson – Director of Operations

Mrs. Caroline Roy – Secretary

Meeting to order The Chair called the meeting to order.
Completion and

Acceptance of

Agenda

The Chair called for acceptance of the agenda as amended, Mr. Helmer moves, seconded by Mr. Southern the acceptance of the agenda as amended. CARRIED.
Disclosures

of Pecuniary Interest

 The Chair called for disclosures of pecuniary interest with respect to the agenda as amended. There were no conflicts of interest declared.
Minutes Mr. Helmer moves, seconded by Mr. Sheppard, the minutes of the meeting held on February 28, 2018 be APPROVED. CARRIED.
1st Report

Accessible Public Transit Service

Advisory Committee

 The Commission received a presentation from Gary Doerr, Vice Chair of the Accessible Public Transit Service Advisory Committee, regarding the 1st Report of the Accessible Public Transit Service Advisory Committee meeting held on March 12, 2018.

With regard to the presentation and report, copy attached, Mr. Helmer moves, seconded by Mr. Southern, the report be NOTED and FILED.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
2017 Draft Auditor’s

Report

 The Commission received a presentation from Katie denBok and Eric Mallory of KPMG, regarding the 2017 audit and related financial statements.

With regard to the presentation and 2017 Draft Auditor’s Report, copy attached, Mr. Helmer moves, seconded by Mr. Sheppard, the Commission APPROVE the 2017 Draft Auditor’s Report and Financial Statements, as per Enclosure I.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
2017 Draft Pension

Fund Audit

 With regard to the 2017 Draft Pension Fund Audit report, copy attached, Mr. Helmer moves, seconded by Mr. Sheppard, the Commission:

(i) TABLE the draft financial statements, as set out in Enclosure I, relating to the non-insured pension fund as at December 31, 2017 noting the only outstanding audit requirement relates to the receipt of a required outstanding verification report from Manulife; and

(ii) DIRECT the administration to present, at a future meeting, the final audited statements noting the final statements are to be forwarded to the Financial Services Commission of Ontario as required under the Pension Benefits Act.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Status of Reserves and Reserve Funds – December 31, 2017 With regard to the Status of Reserves and Reserve Funds – December 31, 2017 report, copy attached, Mr. Southern moves, seconded by Mr. Sheppard, the report be NOTED and FILED.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Recosted 2018 Operating Budget Program With regard to the Recosted 2018 Operating Budget Program report, copy attached, Mr. Sheppard moves, seconded by Mr. Southern, the Commission:

i) APPROVE the recosted 2018 operating expenditure budget for London’s public transit services of $78,321,600 as summarized on the following table;

Conventional Specialized
Description Transit Transit Total
Revenue
Transportation revenue  $ 34,374,700  $ 644,900  $ 35,019,600
Operating revenue 1,383,700 – 1,383,700
Transfer from reserves 780,000 – 780,000
Provincial funding 7,832,600 2,110,500 9,943,100
Total Revenue 44,371,000 2,755,400 47,126,400
Expenditure
Personnel cost 48,271,100 924,600 49,195,700
Fuel 7,089,100 – 7,089,100
Direct bus maintenance 5,783,100 – 5,783,100
Facility 3,080,500 – 3,080,500
Insurance 1,995,000 – 1,995,000
Contribution to reserves 1,455,400 – 1,455,400
Contracted service costs – 6,903,900 6,903,900
All other material costs 2,684,200 134,700 2,818,900
Total Expenditures 70,358,400 7,963,200 78,321,600
City of London  $ 25,987,400  $ 5,207,800  $ 31,195,200

noting the recosted budget:

· reflects the impact of emergent issues/trends arising since the 2018 operating budget was first prepared and approved including consideration of actual to budget 2017 operating performance results;

· includes a placeholder amount relating to the 2017 fare increase deferral as well as the 2018 fare increase which was included in the multi-year budget totaling $1,783,800; and

· maintains the 2018 City of London operating investment as initially approved by the Commission at $30,913,200 and approved by Municipal Council with an additional $282,000 associated with Municipal Council’s prior approval of the Business Case relating to the Dundas Place project and the removal of buses off Dundas Street.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Recosted 2018 Capital Budget Program With regard to the Recosted 2018 Operating Budget Program report, copy attached, Mr. Sheppard moves, seconded by Mr. Helmer, that the Commission APPROVE the recosted 2018 capital budget of $12,341,200 as summarized below noting the recosted budget reflects the previously approved 2018 capital budget program (Staff Report #5, August 30, 2017), updated pricing for 2018 bus replacement/expansion programs and carry forward amounts relating to deferred or active 2017 capital projects.

2018 Recosted Capital Budget

 Source of Investment
Description  Capital Program Reserve  City of London  Federal Gas Tax  Provincial Gas Tax  Total
Stop Upgrades $ 37,000 $ –  $ – $ – $ 37,000
Service Fleet 40,000 – – – 40,000
Shop Equipment 200,000 – – – 200,000
Software and Hardware 350,000 – – 250,000 600,000
Facility Upgrades – 300,000 – – 300,000
Bus Replacements (8) – 2,224,800 1,500,000 836,000 4,560,800
Bus Expansion (4) – 1,200,200 – 1,178,200 2,378,400
Fleet Radio Replacement – 312,500 – 312,500 625,000
TMP 2030 – BRT Strategy – – – 1,500,000 1,500,000
Fare Processing Equipment – 747,500 – 747,500 1,495,000
Smart Card Program – – – 605,000 605,000
$ 627,000 $ 4,785,000 $ 1,500,000 $ 5,429,200 $ 12,341,200

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Contract Award – Leasing of Transit Radial Tires With regard to the Contract Award – Leasing of Transit Radial Tires report, copy attached, Mr. Helmer moves, seconded by Mr. Southern, the Commission APPROVE the optional five year contract extension with Bridgestone Canada effective April 1, 2018, for the supply of transit radial tires, noting year one rates have been reduced by 9.3% with subsequent increases of 5% in year two and three and 4% in year four and five.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Investing in Canada Infrastructure Plan – Public Transit Stream With regard to the Investing in Canada Infrastructure Plan – Public Transit Stream report, copy attached, Mr. Sheppard moves, seconded by Mr. Southern, the report be NOTED & FILED.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Buses off Dundas Street – Update With regard to the Buses off Dundas Street – Update report, copy attached, Mr. Southern moves, seconded by Mr. Sheppard, the report be NOTED & FILED.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Industrial Service Strategy Update With regard to the Industrial Service Strategy Update report, copy attached, Mr. Sheppard moves, seconded by Mr. Helmer, the report be NOTED & FILED.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Impact of 2018 Road Construction – Conventional Transit Service With regard to the Impact of 2018 Road Construction – Conventional Transit Service report, copy attached, Mr. Sheppard moves, seconded by Mr. Helmer, administration PREPARE for the April 25, 2018 Commission meeting, a communication plan for sharing transit service impact related to the 2018 Road Construction.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.

Mr. Helmer moves, seconded by M. Sheppard, the report be NOTED & FILED.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Organizational Structure Update With regard to the Organizational Structure Update report, copy attached, Mr. Sheppard moves, seconded by Mr. Helmer, the report be NOTED & FILED.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Verbal InfoWeb Update With regard to the verbal InfoWeb Update, Mr. Sheppard moves, seconded by Mr. Helmer, the verbal report be NOTED & FILED.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Verbal Smart Card – Stored Value Update With regard to the verbal Smart Card – Stored Value Update, Mr. Sheppard moves, seconded by Mr. Helmer, the verbal report be NOTED & FILED.

YEAS: Mrs. Rooth, Mr. Sheppard, Mr. Southern and Mr. Helmer

CARRIED.
Date of Next

Meeting

 The Commission confirmed the date of the next meeting as follows:

Wednesday, April 25, 2018 at 5:00pm
Adjournment Mr. Southern moves, seconded by Mr. Helmer, the meeting be adjourned. CARRIED. The meeting adjourned at 6:30pm

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Sheryl Rooth – Chair

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Caroline Roy – Secretary