Report to/Rapport au :

Transit Commission Commission du transport en commun

October 17, 2012 17 octobre 2012

Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager, City Operations/ Directeur municipal adjoint, Opérations municipales

Contact Person / Personne ressource: John Manconi, General Manager / Directeur général, Transit Services / Services du transport en commun 613-842-3636 x2111, John.Manconi@ottawa.ca

CITY WIDE / À L'ÉCHELLE DE LA VILLE Ref N°: ACS2012-COS-TRA-0013

SUBJECT: STATUS UPDATE ON TRANSIT SERVICES DEPARTMENTAL PRIORITIES – 2012

OBJET : MISE-A-JOUR SUR LES PRIORITÉS DU SERVICE DE TRANSPORT EN COMMUN – 2012

REPORT RECOMMENDATION

That the Transit Commission receive this report for information.

RECOMMANDATION DU RAPPORT

Que la Commission du transport en commun prenne connaissance de ce rapport.

EXECUTIVE SUMMARY

Following a review of the operation of the Transit Services Department, the General Manager identified a prioritized workplan for 2012, which was received at the Transit Commission meeting on May 16, 2012.

The Departmental priorities were identified based on a review of the capacity of the Department to appropriately resource the volume of projects contained in its 2012 workplan within the context of the Term of Council priorities approved by Council in July of last year.

In particular, the priorities of Transit Services for the remainder of 2012 are centred upon stabilizing the organization and strongly focussing on the implementation phase of key projects aligned to Term of Council priorities and the three pillars of service excellence: customer satisfaction, employee engagement and improved operational performance.

In summary, the Transit Services Management Team will focus the remainder of 2012 on these projects which are contributors to:

Ensuring sustainable transit services; Promoting alternative mobility choices; and Service excellence.

The following 12 approved priorities are described in further detail and are accompanied by progress statements:

1. Labour Relations 2. PRESTO 3. Fares 4. Double-decker Buses 5. Facilities 6. Para Transpo 7. Ottawa Light Rail Transit Project 8. O-Train Expansion 9. IT Review 10. Employee Engagement Plan 11. Financial Management 12. Service Plan

The Transit Services Department, with support and guidance from the Transit Commission and Council, has seen significant progress on all of the priorities. Some highlights include: May 2012 - Ratification of a four year labour contract that ensures that transit users are assured continuous, uninterrupted service for the next four years; April 2012 - Approval of OC Transpo fares, effective July 1, 2012, within the 2.5% limit set by Council, which will continue to provide attractive fares for transit users; O-Train expansion is progressing well; August 24 – Launch of the first double-decker buses; and An Employment Engagement program has been launched.

RÉSUMÉ

À la suite de l'examen des opérations du Service de transport en commun, le directeur général a défini un plan de travail prioritaire pour 2012 qui a été reçu lors de la réunion de la Commission du transport en commun du 16 mai 2012.

Les priorités du Service ont été déterminées en s'appuyant sur un examen de la capacité du Service à approvisionner adéquatement le nombre de projets contenus dans son plan de travail 2012 dans le contexte des priorités pour le mandat du Conseil qui ont été approuvées par le Conseil au mois de juillet l'an dernier.

De façon plus particulière, les priorités du Service de transport en commun pour le reste de l'année 2012 sont axées sur la stabilisation de l'organisation et sur la mise au point de la phase d'exécution des principaux projets qui sont harmonisés aux priorités pour le mandat du Conseil et aux trois piliers de l'excellence du service : la satisfaction de la clientèle, l'engagement des employés et un rendement opérationnel amélioré.

En résumé, l'Équipe de gestion du Service de transport en commun consacrera le reste de l'année 2012 à ces projets qui contribuent à :

assurer des services de transport en commun durables; promouvoir des options de mobilité de rechange; l'excellence du service.

Les 12 priorités approuvées qui suivent sont décrites plus en détail et sont accompagnés d'une déclaration à jour sur les progrès :

1. Les relations de travail 2. La carte à puce PRESTO 3. Les tarifs 4. Les autobus à deux étages 5. Les installations 6. Para Transpo 7. Le projet de train léger sur rail d'Ottawa 8. L'élargissement du réseau O-Train 9. L'examen des TI 10. Le plan pour l'engagement des employés 11. La gestion des finances 12. Le plan des services

Grâce au soutien et à l'encadrement de la Commission du transport en commun et du Conseil, toutes les priorités du Service de transport en commun ont progressé de manière importante. Parmi les faits marquants :

Mai 2012 : la ratification d'un contrat de travail quadriennal qui assure aux usagers du transport en commun un service continu et ininterrompu pour les quatre prochaines années; Avril 2012 : l'approbation des tarifs d'OC Transpo, qui entreront en vigueur le 1er juillet 2012 dans le respect de la limite de 2,5 % fixée par le Conseil, et qui demeureront attrayants pour les usagers du transport en commun; L'élargissement du réseau O-Train, qui va bon train; 24 août : le lancement des premiers autobus à deux étages; Le lancement d'un programme pour l'engagement des employés.

BACKGROUND In May of 2012, Transit Commission received the Transit Services Departmental Priorities report, which detailed the 12 priorities the department was focussing on for the remainder of the year. The priorities for Transit Services are centered upon stabilizing the organization while strongly focusing on the implementation phase of key projects aligned with Term of Council Priorities. They were also aimed at fulfilling the three pillars of service excellence: customer satisfaction, employee engagement and improved operational performance.

For ease of reference, this report is organized so that each status update is preceded by an excerpt from the Departmental Priorities report received in May of 2012. Following each excerpt is a detailed status update of the priority. Overall the 12 priorities are progressing well. Many of the activities contained in the priorities are completed or reaching substantial completion. Listed below are the priorities as they were tabled at Transit Commission in May 2012 and immediately following each priority is a detailed update and description of the work completed to date.

DISCUSSION Priorities

1. Labour Relations In order for customer confidence and employee morale to increase it is imperative that labour relations at OC Transpo improve. The recent ratification of a four year labour contract with the largest employee group is a significant milestone that contributes to customer service as transit users are now assured continuous, uninterrupted service for the next four years. For our employees, our focus will now be in engaging them in their ideas and contributions to service excellence.

The Departmental management team will work collaboratively with the unions and their members on a number of key initiatives that will continue to cultivate positive labour relations. There are four key items that form part of the new contract and that will continue to demonstrate collaboration. These items will need appropriate resourcing and oversight by the General Manager. They are listed below and they will be led by the General Manager’s office:

a. Scheduling Committee; b. Merivale Garage; c. Contracting out/in review; and, d. Safety on Buses (Cameras).

Status Update: The ratification of a four-year labour contract between OC Transpo and ATU 279 was the start of a major shift in labour relations at OC Transpo. The focus is now on open and constructive dialogue with all staff and labour groups. That process has begun and a major piece to this progress is the establishment of Union Management Consultation Committees (UMCC) with all union groups at OC Transpo: ATU 279, ATU 1760 and CUPE 5500.

Inaugural UMCC meetings have already taken place with all three unions and Terms of Reference have been approved and the forum now exists for proactive dialogue. These meetings also provide the environment for dealing with issues before they escalate, enabling management and union to work on joint initiatives and to track progress on key issues affecting all employees. In addition to the distinctive meetings, an annual joint meeting of all three unions with management is also being implemented.

Scheduling Committee: The Working Group on Scheduling continues to meet on a regular basis to review the current scheduling practices with the goal of improving the quality of work for operators. To date, as a result of their work, one such initiative was implemented for the September booking. This initiative focused on making improvements that would speed up the length of time it took to complete the 9:30 a.m. daily booking at no additional cost. In September, initiatives were put into place to improve the daily selection of work by operators.

The group is currently working through two additional initiatives with the goal of implementation for the January booking if possible, alternatively the April booking. All of the ideas stemming from this will be made within existing funding envelopes and must comply with the Keller Award and all applicable legislative requirements.

Merivale Garage: The Merivale Garage is ideally suited for the operation of preventative maintenance (PM) programs and will be fully operational for this fall. We have been working closely with staff and ATU Local 279 to establish appropriate staffing levels and work schedules that will support the hybrid preventative maintenance program. This will result in a focused PM program that is not interrupted by daily maintenance service demands and leverages the already existing facility that is modern and well equipped.

Contracting Out/In Review: The focus in this area has been on setting the ground work for the discussions required to understand the key business drivers of resources levels, outcomes and outputs and gaining a solid understanding by all parties. Both management and union are engaged in dialogue regarding how best to proceed to establish a process for review. There remains strong consensus that OC Transpo needs to be competitive, financially sustainable and we need to meet/exceed our customers’ expectations. Work will continue in this area.

Safety on Buses (Cameras): A joint committee made up of ATU 279 members, management, technical staff, legal, and IT has been set up to review and identify the key issues needed to be reviewed to prepare a thorough report for Transit Commission’s consideration of this matter. The committee has surveyed other Transit agencies throughout Ontario that currently have cameras on their buses and have gained a good understanding of the various approaches in the industry.

With any large-scale IT project, a well-thought-out strategy that forecasts the scope and scale of the changes needed to successfully implement the project is required. To this end, a multidisciplinary team is being assembled to review the project to assess and propose project management structure, implementation strategies, supplier relations, technical support, maintenance, operations, protocols, data management, privacy issues, etc.

We are working closely with the City’s Legal Department to discuss any and all related privacy issues. Legal has advised that they are recommending a Privacy Impact Study be conducted prior to designing the system.

Reports on the feasibility of cameras on buses will be presented to the Transit Commission in 2013.

2. PRESTO Presto is a major contributor to improving customer service. Convenience, simplicity and transferability will all improve the transit user’s experience and will lead to increases ridership. The focus for this project is marketing, Friends and Family testing/feedback pilot and day one readiness.

On May 1, 2012 OC Transpo launched the convenient PRESTO smart card to 400 Friends and Family as a pilot to transit customers. An additional 500 Friends and Family will be added to participate in the June pilot. The purpose of the two month pilot is to further test the PRESTO system to ensure that it will be ready for the broader customer base before we go live July 1, 2012.

PRESTO cards will eliminate complicated interactions between customers and operators, expand user options for fare purchases (by the Internet, as well as by phone, in person, or by mail), and simplify the fare system.

The PRESTO card will redefine customer relationships by enabling easy monitoring and measurement of single-trip fares and monthly pass use. It will provide a better understanding of how our customers use our system and also provide further opportunities to improve OC Transpo’s operational performance. As PRESTO’s functionality evolves to expand payment methods and additional services, customers will benefit from new opportunities for additional convenience.

Status Update: As noted in the August 24, 2012, update to the Commission, PRESTO Card readers had been upgraded and are improving in their performance. Over the last several months, solutions have been implemented that have fundamentally improved the stability and reliability of the system. Updates will be provided at a future Transit Commission meeting.

3. OC Transpo Fares 2012/2013 Transit Commission and Council recently approved the OC Transpo Fares – 2012/2013 report. This provides for transit fare increases at 2.5% overall effective July 1st, 2012. This is in accordance with the Council approved 2012 budget. This is the second year that fare increases do not exceed 2.5%.

The report also included changes to fares to take advantage of the PRESTO smart card technology, which will be introduced on July 1, 2012. The introduction of PRESTO will transform the way people in Ottawa experience transit. PRESTO offers convenience like never before, including for the first time a fare card that is transferable between two people, e.g. family members.

The new fare table has many attractive features, including discounted pay-per-ride fares for seniors, the elimination of rural express fares and a pay-per-ride fare increase capped at a nickel ($0.05) to make it easy for occasional customers to migrate to the PRESTO card instead of the less convenient paper tickets, which will be phased out over time.

Based on these rates, and on ridership projections, the fare revenues are expected to meet the established 2012 Budget of $174.25 million. Transit will also meet the 2012 budgeted revenue/cost ratio, which is the share of operating costs to be borne by transit riders, of 53.3%. The City’s fiscal framework has established a goal of 55% for the Transit revenue/cost ratio to be achieved over several years. Certain risks, however, if fully realized may alter the above projection. The Department will strive to meet the goal of maintaining average fare increases to 2.5% for the current term of Council.

Status Update: Transit Commission and Council approved the OC Transpo Fares – 2012/2013 report which was tabled April, 11, 2012. This provides for transit fare increases at 2.5% overall effective July 1, 2012, and is the second year that fare increases do not exceed 2.5%. This is in accordance with the Council approved 2012 budget. There were changes to the approved fares needed to accommodate the delay of PRESTO. The costs of these are being paid for by Metrolinx.

For the longer term, staff are preparing to conduct a study in 2013 of the best ways to collect and control fares across the entire rapid transit network. As OC Transpo moves away from being primarily a bus system to a multimodal system, new methods of fare control will be needed so that large numbers of customers can transfer easily between buses and trains and so that non-payment of fares is kept as low as possible. The study is to determine the most appropriate methods, to estimate the costs of new fare equipment for rapid transit stations, and to prepare a business case to assure that the benefits justify the costs. The capital costs of new fare equipment would be built into future years’ capital requests.

4. Double-decker Buses The arrival of 75 new double-decker buses will commence in Q4 of 2012. The principal advantage of double-decker buses is that they carry more customers and offer more seating than any other bus type. This will lead to improved customer service. This increased capacity can be accomplished at about the same capital cost as a 60-foot articulated bus and in the same road space as a standard 40-foot bus. The double- decker buses are particularly well-suited for use on OC Transpo express routes where seating availability is critical to attracting and satisfying customers, and on future feeder routes that will accompany the opening of the light rail line through the downtown core. By reducing the number of buses needed to serve customer demands, the use of double-decker buses will substantially reduce operating costs and long-term capital costs. Transit Services will be working with our manufacturer Alexander Dennis on a launch and public relations campaign to mark this significant addition to our fleet.

Status Update: On August 24, 2012, the Transit Services Department launched the arrival of the first new double-decker bus. The double-decker buses, which are scheduled to commence service in October 2012, not only have lower operational costs and significant efficiencies, but they will also allow OC Transpo to serve more customers and create a better customer service experience for its users. Soon, Ottawa will be the largest user of double-decker buses in Canada and the second-largest in North America.

The double-decker buses have made appearances at a number of Customer Appreciation events in order to give customers the opportunity to view the new fleet. Driver training has also been taking place in September and by November 10th, all bus operators will have completed the training program. Two buses were deployed to assist with Transit Service demands during the 174 Sink Hole issue and the feedback was very positive. The program is on track and the overall response to date has been positive.

5. Facilities The provision of facilities that are clean, accessible and functional is a key contributor to customer satisfaction for transit users.

In 2012, continued facility enhancements will be made throughout the system in order to improve customer experience and safety. Specifically at Transitway stations, we will be providing improved accessibility and wayfinding measures and we will be undertaking many lifecycle projects such as elevator modernizations, signage replacement, flooring and stairs rehabilitation. At the westbound platform Laurier Station, we are working with the University of Ottawa to provide a better and safer waiting area for our customers. At Trim Station lot, the park and ride lot expansion will provide our customers with increased capacity and improved accessibility features. Design work is continuing at the Woodroffe/Strandherd. Chapel Hill and Strandherd locations in order to meet increasing park and ride demand in those areas. Changes are being made at Millennium Station to improve safety for traffic travelling along Millennium Blvd, as well as for our customers. We will continue to monitor recent operating improvements made at Hurdman Station and, if needed, we will respond with additional changes that would improve customer travel time through the station. Throughout the City, we will be adding 50 new bus shelters, benches and providing new bus stop pads to improve waiting areas for our customers.

We are also in the process of rehabilitating and modernizing the maintenance facilities, some of which are more than 30 years old and require lifecycle upgrades for capacity, cost effectiveness and sustainability objectives. The work is required to improve employees working environment (including restrooms, showers, lockers and lunchrooms) at St. Laurent, Merivale, Pinecrest garage, the Walkley O-Train facility and some operator washrooms across the Transitway system.

The Facilities Maintenance and Non-Revenue Repair facility at 805 Belfast is to be consolidated into existing facilities at 899 Belfast (Facilities Maintenance) and Pinecrest (Non-Revenue Repair) by the end of 2012, to enable construction of the future light rail maintenance facility.

Industrial garage will undergo minor modifications to the servicing bays and one countdown lane to accommodate the new fleet of double-decker buses and the floor throughout the garage will undergo surface treatments to improve friction and address health and safety concerns.

The renovations to the administrative building at 1500 St. Laurent are planned for 2012 with a reduced scope and total value of $7 million.

Status Update: Facility enhancements have been taking place and continue to be made throughout the system. Emergency phones and pay phones have been lowered to meet the Accessibility for Ontarians with Disabilities Act (AODA) requirements. Furthermore, during the month of November, accessibility door hardware will be installed at various Transit Stations.

Seven elevators at Smyth, Greenboro, Bayshore, Blair and South Keys Transitway stations have been modernized in 2012, with an additional six elevators at Bayshore, Lycée Claudel, South Keys and Queensway stations scheduled for modernization later in Q4. Replacement and repairs to the floor finishes is also scheduled at Bayshore, Tunney’s, Lincoln Fields and Billings Bridge.

Discussions are continuing with the University of Ottawa and the City’s Real Estate Office on improvements to the shelters at the westbound platform at Laurier Station. Design work is expected to continue through the Fall 2012 with construction expected in 2013.

Construction to expand the Trim Park and Ride lot by 360 spaces and improve station amenities is nearly complete. The new allotment of spaces was opened early to allow for increased capacity during emergency construction on HWY 174. Lighting, emergency phones, and closed-circuit television cameras have yet to be installed. Construction is expected to be complete at the end of September 2012.

Other Park and Ride design and construction are also taking place. Design work for the future South Nepean Woods Park and Ride will be carried out after finalization of the land purchase agreement. Design work for the expansion of Strandherd Park and Ride is expected to be completed in 2013. Design work and discussions between the City of Ottawa and the National Capital Commission are ongoing for the future Chapel Hill Park and Ride. Timelines have yet to be finalized. The Millennium Park and Ride is undergoing improvements. Construction on the bus layup facility and new station amenities is ongoing and expected to be complete at the end of October 2012.

The operational modifications implemented last year at Hurdman Station have resulted in improved travel times and traffic flow through the station. We will continue to monitor the situation, however at this time no further construction is planned.

Twenty-two new shelters have been installed and we anticipate an additional 15 to be installed by the end of the year. Additionally, in an effort to improve waiting areas for our customers, 36 bus stop pad improvements are scheduled to be completed by the end of October.

The Walkley O-Train facility improvements are completed and we are currently renovating the operations centre at the Pinecrest garage. We are working on design drawings for St. Laurent and Merivale with the renovation scheduled for 2013.

The Facilities Maintenance and Non-Revenue Repair facility at 805 Belfast is to be consolidated into existing facilities at 899 Belfast. The facilities at 899 Belfast are currently undergoing major renovations to accommodate Facilities Management and existing work bays are being modified at 1500 St Laurent North for the Non-Revenue Repair staff.

Countdown modifications are completed at the Industrial Garage where double-decker buses are being washed and fuelled. We are currently performing minor modifications to the exhaust and fluid systems at the servicing bays.

The renovations to the administrative building at 1500 St. Laurent are planned for 2012 with a reduced scope and total value of $7 million. The design team is currently working on finalizing space requirements and will be developing detailed design drawings and a tender package in the following months. Construction is planned to commence in late 2012.

6. Para Transpo Improving service to Para Transpo customers will include the following: - Implementation of Electronic fare payment system; - Replacement of the Para Transpo fleet which is nearing end of life; - Accommodate most ridership growth using contracted taxis; and, - Continuing to operate mini bus services internally.

In 2012, as approved by the Commission, funds for Para Transpo service in the rural parts of Ottawa are being redirected to community support service agencies that offer transportation services for seniors and people with disabilities in rural areas, and to new once-a-week OC Transpo services from rural villages to shopping and service destinations in central Ottawa. Para Transpo is an extremely expensive way to provide mobility in rural areas, and these changes will improve overall mobility for seniors and people with disabilities without increasing costs.

Status Update: Implementation of Electronic fare payment system: An initial Statement of Work document has been completed outlining the functional requirements of the system. Following further stakeholder consultation staff are prepared to proceed with the development of an electronic fare payment system that would offer the same benefits as the Presto / Smart Card product that will be used on Conventional transit while recognizing the unique aspects of the Para Transpo business.

Replacement of the Para Transpo fleet which is nearing end of life: A report is being tabled at the October 17, 2012 Transit Commission meeting, recommending that staff be authorized to proceed with the procurement and acquisition of the replacement Para Transpo mini-bus fleet. In the 2012 Budget Process, Council allocated $13 million to the lifecycle replacement of the fleet. Following Council approval of this recommendation, staff will commence the procurement process with the first phase being public consultation.

Accommodate most ridership growth using contracted taxis: Para Transpo staff are regularly monitoring and adjusting service between our in-house mini-bus service and the use of contracted taxis. For the first 6 months of 2012, Para Transpo has conducted approximately 2,500 trips using contracted taxis as compared to the same time period in 2011.

Continuing to operate mini bus services internally: A report is being tabled at the October 17, 2012 Transit Commission meeting recommending that OC Transpo staff be authorized to continue to operate the Para Transpo mini-bus service internally. Presently, the mini-bus service is operated internally with vehicles that were purchased in 2007. As noted earlier these vehicles are nearing their end of life and need to be replaced.

7. Ottawa Light Rail Project OC Transpo staff have been participating with the Rail Implementation Office on the development of the plans for the light rail line, and this collaboration continues as the project moves into detailed design and construction. The light rail line will make dramatic improvements for transit customers in many ways – from improving reliability of service and reducing travel times for current transit customers, to unlocking the capacity for downtown Ottawa to continue to grow, to opening up downtown streets for other uses as many bus routes are replaced by the new light rail service. The light rail line, its stations and vehicles, and its service plans, are all being set based on transit customers’ travel needs.

During the years of light rail construction, there will be significant disruption to the current transit network. This impact will be managed to be as low as it can reasonably be. The increased O-Train capacity will be in place before heavy construction begins, to give more customers a way to bypass the congested areas. The City is co-ordinating the expansion of Highway 417 so that the new lanes can be used by buses during light rail construction. But the sections of the Transitway between Tunney’s Pasture and LeBreton Stations and between Laurier and Blair Stations will need to close for some time to be converted to light rail tracks, and when they do, buses will need to operate on parallel highways and streets. When these detours are in place, the travel time for customers will increase. The higher operating costs and the need for more buses and operators in the system are built into the long-term financial plan for Transit, and the details of the construction and the mitigation of its effects will be determined following the award of the contract to build the light rail line.

In the coming months, the Transit Services Department will be faced with many decisions and choices that will impact our services and our customers. A coordinated and experienced lead is needed in Transit Services that will assist the Department in understanding the issues, plan proactively for service interruption and focus on day one operations and readiness. Working in partnership with the OLRT office, a resource is being secured that has extensive experience in the operations of rail service to assist in this regard.

Status Update: The department has initiated a process to understand and develop strategies to manage two key aspects of this large transformational project. The two major elements of this work for Transit Services Department are the management and delivery of good transit service during the five-year construction period, and developing an organisational framework that enables OC Transpo to become a multimodal transit operation.

Transit service during light rail construction During the construction of the light rail project, sections of the Transitway will need to be closed for conversion to light rail. In anticipation of the impact of this closure, Council directed several mitigating measures, including bundling of the province’s Highway 417 widening project with the OLRT project to ensure that the new highway lanes can be used as bus-only lanes during the construction period and a one-time capital contribution of $166 million to fund increased transit operating costs during the construction period.

In the design-build-finance-maintain procurement of the light rail project, the proponents have been given financial incentives to build into their designs ways to reduce the impacts that construction will have on transit operations. This is more effective than mitigating the impacts once the construction plans are fixed. The “Mobility Matters” part of the procurement process sets out a series of financial incentives and disincentives, through access to the $166 million in mitigation funding, to maintain the best possible mobility for transit customers and the lowest possible transit operating costs during the light rail construction period.

After Council has selected the preferred proponent later this year, Transit Services will work with the proponent, with RIO, and with other City departments to develop the transit operations plan for the construction period. Staff will report to the Commission on this work during 2013.

Developing a management structure for the multimodal system OC Transpo has a robust management and supervisor structure for bus operations and a small, proven management and supervision structure for the O-Train. For the future integration of the light rail line into the OC Transpo system, the organization needs to build a strong structure and strong operational procedures. The focus of the organization will need to be on the delivery of excellent service to customers as they complete their entire door-to-door trip, not treating them as rail customers who also ride buses nor as bus customers who also ride trains. Every task that supports the operation of the transit system will change with the opening of the light rail line, whether those services are provided internally within Transit Services or by other City departments. Transit Services will be building this new management structure starting in 2013, and scaling-up to take on more responsibilities as the light rail project moves from planning and procurement, through design and construction, into operations and maintenance.

Other work related to the OLRT project As noted earlier in this report in the fares and facilities sections, Transit Services staff will be reporting further to the Commission on specific projects that will be required to integrate the light rail line into the complete transit system. In particular, staff will be working along with the Rail Implementation Office to define the future fare system for the whole rapid transit network and to define the needs for physical projects to accommodate bus operations where they connect with the light rail line.

8. O-Train Expansion Progress continues on the project to expand the capacity of the O-Train service. This project was approved by the Commission and Council in 2011, to provide more frequent service and greater capacity on the O-Train. One of the benefits of this project is to divert some customers away from the section of the Transitway between downtown and Hurdman Station during the years of light rail construction. In the longer term, the service improvements on the O-Train will accommodate increasing ridership in the corridor, including the area near Carleton University, will make it more attractive for customers to use the O-Train to bypass downtown, and would be compatible with any possible extension or other enhancement to the line, with possibilities to be examined as part of the refresh of the Transportation Master Plan. Construction is currently planned for summer 2013.

Status Update: The Rail Implementation Office, in partnership with OC Transpo, has taken responsibility for the management and construction phase of the O-Train expansion. On September 5, 2012, a Request for Qualifications (RFQ) was issued and posted on the Ottawa Construction Association web site and on MERX. The RFQ is a critical step in the procurement process as it identifies the potential design-build contractors, one of whom will be selected to perform the work required for the O-Train expansion. The project is on-track, with heavy construction set to commence at the beginning of the O- Train shutdown period, April 27, 2013, and concluding prior to resumption of service on September 3, 2013. Light construction, not requiring service interruption, will commence in Q1 2013 and be finalized towards the end of Q1 2014.

9. IT Review Transit Services has an extensive list of IT projects underway. A detailed review of all IT projects is being undertaken. This review, which will form part of a report to the Commission, will bring forward recommendations on prioritization of projects, organizational accountabilities and identify opportunities for leveraging corporate initiatives. IT projects will have a solid business case that clearly brings forward benefits to our customers or enables our employees to provide better service. In addition, it will ensure that all projects underway and approved by the Commission are adequately resourced, managed and set up for success.

Status Update: The IT review commenced in August and is tracking well. The project is broken into three distinctive phases:

Stage 1 Planning, Scoping & Discovery • Complete the creation of an “inventory” of applications and projects • Identify key targets for a detailed assessment in the subsequent stage of this work

Stage 2 Portfolio Assessment Q4 2012 • Begin scheduling necessary follow up sessions with City ITS and key Transit business users to complete assessment and prioritization of future Transit IT projects schedule for the coming period 2012 - 2015 • Complete Assessment Report

Stage 3 Governance and Organization Q1 2013 • Execute Stage 3 activities and complete Governance Report

The deliverables include a detailed assessment report with clear priorities, governance and organizational recommendations.

10. Employee Engagement Employee engagement has a direct and measurable impact on employee retention, productivity, customer satisfaction, and financial results. It has been proven that operational performance and customer satisfaction improves when employees are engaged. Investing time and resources in this area will help Transit Service drive up customer satisfaction.

The Employee Engagement program will focus on elements such as: · Being part of a successful organization; · Having positive working relationships; · Doing meaningful work; and, · Recognition and appreciation.

The Department’s priority will be to develop and implement strategies, programs and policies that facilitate the building and strengthening of a committed, engaged and satisfied client-centric workforce. The corporate Service Excellence framework will form the basis of the road map and the Department will leverage the corporate resources and ideas all ready in place to help make meaningful change in this regard.

Status Update: The Department has deployed an employee engagement framework. The key principles being used are as follows:

1. It will be a bottom up and inclusive approach; 2. It will be developed internally without the use of consultants; 3. It is based on the belief of that OC Transpo staff have the expertise, commitment and passion needed to create a workplace environment that is engaged, understood and respected and linkages associated with employee engagement, customer satisfaction and improvement in operational performance; and, 4. Employee engagement is not a “project” it is a “culture”.

The framework was developed and is being presented to employees across the organization. It is built on five foundational pillars that everyone can relate with:

1. Relationships; 2. Security; 3. Health; 4. Nurturing; and, 5. Environment.

Accountabilities associated with the framework have also been developed and communicated. They are as follows:

Employees: Ownership, Clarity and Action The message to employees is to assess their own goals, communicate with their Managers and share their aspirations and ideas on where the organization needs to focus their priorities and to take action, they own their future;

Managers & Supervisors: Coaching, Relationships and Dialogue Build solid coaching relationships with their teams; align daily priorities; recognize and show appreciation and engage themselves and individuals in dialogue on what matters the most to them and the organization; and,

Management Team: Trust, Communication and Culture Management have to demonstrate consistency in words and action and foster a sense of community within OC Transpo.

To gain a solid understanding of the themes and priorities needed to create the focus and priorities for the strategy, an open-ended questionnaire was developed and is being used on a voluntary basis with employees in a one-on-one forum. Over 550 employees, union executive members and our shared services partners were asked questions ranging from training and development, definition of employee engagement, career aspirations, their role within the organization and what can OC Transpo do to increase their satisfaction and productivity as an employee. These one-on-one interviews are gathering valuable and meaningful data to assist in building the next steps of the employee engagement plan, and to assist in developing relationships, building a culture of communication and sharing. OC Transpo is fortunate in having 3,200 employees with a diverse background of experience, knowledge and life experience, which must be tapped into to build a successful employee engagement plan.

Reports will be created from the collected data, where themes will help shape the priorities.

11. Financial Management In addition to ensuring our customers are satisfied and employees are client focused, strict financial oversight is a priority for the Department. Detailed financial tracking has already been implemented and key line items such as fuel, overtime costs, etc. are being monitored. A comprehensive review of all capital projects, commitments and Work-in-Progress is also underway and revenues will be closely monitored.

Marketing/Advertising Marketing in 2012 will focus on the introduction of the new PRESTO card for fare payment. Customers will be faced with significant messaging in this regard and introducing new marketing concepts are not recommended. Relating to advertising, an RFP will be concluded by Q3 2012 to establish new advertising contract(s) for both new assets and those covered by existing expiring contracts. These new contracts will be structured to reserve advertising streams that could be of particular interest to the City’s strategic partners in economic development endeavours – for example, transportation partnerships developed through tourism, events and festivals. Advertising at on-street passenger shelters and benches is covered by contracts ending in 2013.

Arising from the Service Ottawa initiative, a market review and RFI by the City determined that transit revenue could be maximized by offering more assets for advertising purposes, and by bundling assets differently within each contract. The assets will be offered through a subsequent process as part of the Integrated Street Furniture Program.

Status Update: The Transit Services Department is seeking proposal submissions to develop an Advertising Development and Sales Program for generation of advertising revenue on OC Transpo Transitway Stations, transit vehicles, digital and other communication media.

A Request for Proposal (RFP) was released on August 23, 2012 as a result of the current contract expiring at the end of 2012. The RFP closing date was October 4, 2012. The proposed period for the new contract is for ten years starting January 1, 2013 to December 31, 2022.

The RFP asks proponents to provide a revenue-sharing proposal consisting of a Minimum Annual Guarantee (MAG) for each advertising space group. Contracts will be awarded based on the highest MAG. The new advertising contract includes more advertising space than the current contract. The increase in advertising space will help maximize the City’s advertising revenue.

Fuel On fuel, we can advise that OC Transpo will continue to focus on diesel consumption as our primary focus. Over the past few years several initiatives have implemented to reduce the numbers of litres consumed per customer including: o Completed driver training to improve efficiency; o Changing idling procedures in cold weather; o Added more high capacity buses; and, o Replaced high fuel consuming first-generation articulated buses with newer, more efficient articulated buses.

We have also benefited from the hedge strategies implemented by Corporate Finance. These strategies reduce our exposure to the unpredictable diesel fuel market. City Council approved a Commodity Price Hedging Policy in 2008. Under the policy, the City is able to enter into financial agreements that fix the price of fuel. The benefit of the policy is that it allows the City to manage financial risk by establishing a level of certainty with respect to the price of fuel, and removes the budget to actual price volatility and exposure that would otherwise occur.

Under the policy, up to 85 percent of the forecast fuel volume can be hedged (price is fixed) on an annual basis. Approximately 60% of the City’s 2012 forecast fuel volume is now protected with these fixed prices, at a level close to the rates budgeted for 2012. Finance staff determines its hedging strategy by setting target prices at which it is appropriate to enter into fixed contracts. These target prices are based on a review of historical price data. Staff continue to monitor the markets and may execute more contracts for 2012. In addition, staff have commenced putting in place fixed price contracts for the 2013 budget year.

OC Transpo has reviewed many solutions and will be focusing on adding specific modifications to reduce fuel consumption. These include implementing electric fan modifications on hydraulic fan equipped buses, improving the functionality of automatic vehicle monitoring systems to help drivers know when they are driving with optimum fuel efficiency and completing the purchase of double decker buses, which bring economies by requiring fewer buses on the road as well as providing the value of the new fuel efficient engines. We are also looking at garage parking strategies as the smaller fleet may enable a higher percentage of buses to be stored inside and reducing the use of the bus heater.

The transit industry has many major alternate fuel related initiatives under way and OC Transpo is keeping informed on all the technology changes and the results they can tangibly provide. A key strategy of any future procurement will be to reduce the amount of diesel we consume by acquiring the best proven products at the time of natural procurement cycles. This will support our trend of using less fuel per ride.

A key challenge identified through long-range forecasting is the growing discrepancy between the growth rates of fuel prices and transit fares. Diesel costs are forecast to continue increasing at long-term rates of 5 per cent, while opportunities to use fuel more efficiently have been maximized. A switch to a lower-cost fuel may be required to contain fuel cost pressures as fleets are renewed in 10 to 15 years.

This has led to a continued pressure on the diesel fuel budget in 2012 and will continue to challenge future years. The Department will provide updates as part of regular quarterly operating and capital budget status reports.

Status Update: The department now provides regular quarterly updates on fuel costs and litres of fuel used. The Finance Department continues to use Price Hedging strategies to manage costs and these strategies are continuing to provide positive results. Training strategies continue to proceed and the Fuel Management system has been initiated. This system brings fully automated end to end fuel inventory capabilities which will help in the analysis of trends, vehicle consumption etc.

12. Service Plan Ridership levels on the transit system are expected to continue to grow, and service levels and the route network will continue to be adapted to accommodate increased numbers of customers and changes in customers’ travel needs. No major route changes are expected in 2012, except for improvements in Stittsville following its inclusion in the Urban Transit Area and the opening of the new park and ride lot at Scotiabank Place. Planning is continuing for service changes in future years, including the opening of the Strandherd-Armstrong Bridge, improved interprovincial services in coordination with the opening of the STO’s Rapibus facility, the relocation of federal workers to the former Nortel location, the opening of new park and ride capacity, and the increase in capacity on the O-Train.

Work continues to improve the reliability of service for customers in several ways. The actual running time required on all routes is being measured by on-board GPS equipment and analysed using new software and procedures, so that the scheduled time for every trip better matches the operating conditions. The continuing implementation of transit priority measures reduces travel time for customers and reduced the variability of travel time through congested locations. Staff are also continuing to improve workforce planning and management, to strike the best balance possible between efficiency and quality.

Safety Relating to safety, our focus in 2012 will be on exploring the feasibility, costing and logistics associated with the use of Cameras on our buses. The safety of our Customers and Employees is our number one priority. This complex issue has a range of financial, operational, maintenance, legal (including privacy) and other implications. As such, OC Transpo staff will consult with all affected stakeholders in the development of a report, and will make recommendations for Transit Commission to consider in time for 2013 Budget deliberations.

Accessibility Our goal of enhanced accessibility will continue in 2012. OC Transpo will enhance barrier-free access to transit stations and facilities by installing more power doors, lowering operating controls, improving signage and lighting, installing new curb ramps, and modernizing older elevators. As well, all transit employees who deal with the public or develop policy will be trained in accessible customer service; additional training will be undertaken on the AODA Integrated Accessibility Standards regulation, and planned for any new accessibility standards tabled in the coming months. The organization will continue its very successful partnership with community agencies in the provision of travel training, which provides persons with disabilities the confidence and skills needed to use public transit.

Community Partnerships OC Transpo has a long history of nurturing community partnerships, as evidenced by its receipt of a special award in 2011 to recognize 25 years of leadership in raising impressive Ottawa Food Bank donations through its annual food drive. OC Transpo is also proud of its role and reputation in serving our community’s needs beyond the issue of mobility. Our many operators are the community’s eyes and ears, and contribute to the safety of Ottawa residents at all hours of the day and night. Every year, TRANSECURE Awards formally recognize individual employees who go above and beyond the call of duty in improving public safety.

Building on these successes, OC Transpo will focus on creating long-lasting partnerships that benefit customers and the community, leveraging OC Transpo’s brand and assets to provide tangible benefits and maximize marketing opportunities.

Status Update: Safety See update under Safety on Buses (Cameras).

Accessibility: OC Transpo continues to enhance barrier-free access to its services. Operating controls and buttons on emergency call boxes, heating controls and some Bell telephones have been lowered at transit stations to improve access to customers using assistive devices. Power door installations are scheduled to begin later this year at five stations and, to date, seven elevators at five different transit stations have been modernized. Additional facility improvements are ongoing. The training of new and current staff in accessible customer service is in progress, and training on the AODA Integrated Accessibility Standards regulation is scheduled to begin later this year, led by the City’s Accessibility Office. Transit Services has successfully partnered with 50 community agencies in the provision of travel training, providing them with 1,000 passes for trainers and trainees to use on conventional transit. Although not identified in the Service Plan, OC Transpo also plans to conduct a review of Para Transpo’s current policies and procedures in the context of industry best practices and relevant accessibility standards.

Community Partnerships: OC Transpo continues to engage in partnerships with the community and our customers to highlight the strong public interest in the bus and train services provided by the Transit Services Department. In May, OC Transpo was one of the many organizations participating in Doors Open Ottawa through two locations – the Industrial Garage and the O-Train maintenance facility. Hundreds of people including a large number of children participated in the day. There has been OC Transpo participation in a number of other community activities. These included joint efforts with the Wellness, Recreation and Fitness (WRF) group in raising money ($11,000) for the Heart & Stroke Foundation through a charity 5km walk/run and in a joint WRF and volunteer staff effort in putting a very successful float with a great reception in the Pride Week parade. The TRANSECURE Awards were held again this year and recognized the achievements of 12 brave and quick thinking employees. Partnerships are also underway with a local artist who is participating in Nuit Blanche by “yarnbombing” a Para Transpo bus and with the Great Canadian Theatre Company in anticipation of their production of the play entitled “The Number 14” which will be running from November 27 to December 16, 2012.

Looking forward into 2013

For departmental priorities in 2013 the Department will be recommending that it focus on 4 key areas:

1. Continuing to improve customer service; 2. The LRT project as outlined in this update; 3. Presto; and, 4. Employee engagement.

It has become clear that the department’s capacity will need to be carefully managed as the LRT construction will be impacting every part of the organization. There is a direct relationship with Customer Service and if not carefully managed can lead to significant operational problems, drop in ridership and other risks to OC Transpo. The use of Transit during the highly disruptive construction phases will be an opportunity to attract riders. If the experience meets or exceeds the expectations of new riders, we can be successful in attracting them into becoming regular users of our service. With a strong focus on the LRT any remaining capacity needs to be used to manage Presto, which is a large scale customer facing transformation project, ensuring we respond to our customer needs and ensure that or employees are part of the transformation of moving to multimodal transit operation.

RURAL IMPLICATIONS There are no recommendations in this report that affect rural areas.

CONSULTATION No specific consultation has been carried out on this report.

LEGAL IMPLICATIONS There are no legal impediments to receiving this report.

RISK MANAGEMENT IMPLICATIONS There are no risks associated with this report.

FINANCIAL IMPLICATIONS There are no financial implications associated with this report.

ACCESSIBILITY IMPACTS There are no recommendations in this report that affect accessibility.

ENVIRONMENTAL IMPLICATIONS There are no environmental implications to receiving this report.

TECHNOLOGY IMPLICATIONS There are no direct technical implications associated with the receiving of this status update / informational report. ITS will work with Transit Services to determine any new potential needs and priorities as they arise.

TERM OF COUNCIL PRIORITIES This report directly and indirectly supports the following objectives of the Transportation Master Plan and previous Council strategic directions:

TM1 – Ensure sustainable transit services TM4 – Provide alternative mobility choices SE1 – Ensure a positive experience for every client interaction SE2 – Improve operational performance EE4 – Build a positive, productive and engaged workplace

DISPOSITION Staff will undertake any further action and direction of the Transit Commission.