1 Agenda – Standing Policy Committee on Infrastructure Renewal and Public Works – November 4, 2019

Agenda – Standing Policy Committee on Infrastructure Renewal and Public Works – November 4, 2019 REPORTS Item No. 3 Negotiation of U-Pass Agreements with University of Manitoba, University of Winnipeg and Red River College WINNIPEG PUBLIC SERVICE RECOMMENDATION: 1. That the City enter into four year agreements with the University of Manitoba and the University of Manitoba Students’ Union, the University of Winnipeg and the University of Winnipeg Students’ Association, and Red River College and the Red River College Students’ Association (the “U-Pass Agreements”) for the term September 1, 2020 – May 31, 2024 on the basis of the existing agreements with University of Manitoba, University of Winnipeg and their student associations, as modified by the recommendations set out in this report; 2. That the 2020/2021 U-Pass rate be approved at a rate of $160.75 per term and increase by the rate of inflation annually thereafter; 3. That a second opt-out boundary area defined as outside of the City Boundaries and/or outside of the Perimeter Highway, excluding the area commonly known as St. Norbert, be added as an option for each of the U-Pass Agreements and that each student association be allowed to select either the original or the amended opt-out area that is best suited for their campus for inclusion in their U-Pass Agreement. 4. That a new post-secondary 14-day rolling pass fare product be established and priced at 80% of the cost of a full fare 14-day rolling pass; 5. That, Winnipeg Transit be authorized to increase its staff complement by 4.95 FTE’s for bus operators, maintenance staff and related Inspector/Supervisory/Support staff required for the additional service hours needed from the addition of Red River College students to the U-Pass program; 6. That the City enter into, execute and deliver the U-Pass Agreements and such other agreements as determined necessary by the City Solicitor / Director of Legal Services to implement the intent of the foregoing (the “Ancillary Agreements”). 7. That authority be delegated to the Chief Administrative Officer to negotiate and approve the terms and conditions of the U-Pass Agreements and the Ancillary Agreements, in accordance with this report and such other terms and conditions deemed necessary by the City Solicitor / Director of Legal Services to protect the interests of the City. 1 Agenda – Standing Policy Committee on Infrastructure Renewal and Public Works – November 4, 2019 WINNIPEG PUBLIC SERVICE RECOMMENDATION (continued): 8. That the proper officers of the City be authorized to do all things necessary to implement the foregoing. 2 Agenda – Standing Policy Committee on Infrastructure Renewal and Public Works – November 4, 2019 DECISION MAKING HISTORY: COUNCIL DECISION: On July 18, 2019, Council concurred in the recommendation of the Standing Policy Committee on Infrastructure Renewal and Public Works and adopted the following: 1. That an extension of time of up to 90 days be granted for the Winnipeg Public Service to report back on the results of the negotiations of a U-Pass agreement with the University of Manitoba, University of Winnipeg and Red River College, including an estimate of all operating costs, capital costs, and resource implications for potential inclusion in the 2020 Capital and Operating budgets. 2. That the Proper Officers of the City be authorized to do all things necessary to implement the intent of the foregoing. On May 16, 2019, Council concurred in the recommendation of the Standing Policy Committee on Infrastructure Renewal and Public Works and adopted the following: 1. That an extension of time of up to 60 days be granted for the Winnipeg Public Service to report back on the results of the negotiations of a U-Pass agreement with the University of Manitoba, University of Winnipeg and Red River College, including an estimate of all operating costs, capital costs, and resource implications for potential inclusion in the 2020 Capital and Operating budgets. 2. That the Proper Officers of the City do all things necessary to implement the intent of the foregoing. On September 20, 2018, Council concurred in the recommendation of the Standing Policy Committee on Infrastructure Renewal and Public Works and adopted the following: 1. That the Winnipeg Public Service be directed to begin re-negotiation of a U-Pass agreement with the University of Manitoba Students’ Union (UMSU) and the University of Winnipeg Students’ Association (UWSA) in Fall 2018 for a four year term that would be effective September 2020 – May, 2024; 2. That the Winnipeg Public Service be directed to begin negotiation of a U-Pass agreement with RRCSA in Fall 2018 for a four year term that would be effective September 2020 – May 2024; 3 Agenda – Standing Policy Committee on Infrastructure Renewal and Public Works – November 4, 2019 DECISION MAKING HISTORY (continued): COUNCIL DECISION (continued): 3. That the Winnipeg Public Service report back on the results of the negotiations, including an estimate of all operating costs, capital costs, and resource implications, no later than May 2019, for potential inclusion in the 2020 Capital and Operating budgets. 4. That the Proper Officers be authorized to do all things necessary to implement the intent of the foregoing. 4 ADMINISTRATIVE REPORT Title: Renewing Agreement Terms of a Universal Transit Pass (U-Pass) for Post- Secondary Students at the University of Manitoba and the University of Winnipeg and Implementing a U-Pass at Red River College Critical Path: Standing Policy Committee on Infrastructure Renewal and Public Works – Executive Policy Committee – Council AUTHORIZATION Author Department Head CFO CAO P. Olafson, M. Ruta, L. Fisher G. Ewankiw Interim CFO Interim CAO EXECUTIVE SUMMARY The existing U-Pass agreements held with the University of Winnipeg (UofW) and the University of Manitoba (UofM) and the student associations at those institutions expire May 31, 2020. As the Transit Department is currently in the process of implementing a low income pass and is exploring other fare concession products, combined with ongoing budget challenges facing the City, the Public Service is recommending a U-Pass rate that offsets the added costs from the other recommendations in this report. The added revenue generated would cover the additional operating costs recommended in this report in order to maintain the current level of subsidy the City is currently providing to the U-Pass program. Changing the rate structure from what is currently employed (i.e. inflationary increases only) could require the student associations to go back to their student bodies for ratification. The Public Service has met with the student associations at all three institutions (UofM, UofW and Red River College (RRC)) to discuss the terms of the U-Pass agreements. Generally, the feedback received from the UofM and the UofW indicated that the vast majority of the original agreement terms were acceptable and required no change. However, there were four items tabled for discussion for changes to the existing agreement terms: Amending the opt-out boundary area by which students are allowed to opt-out of the program; Addressing circumstances where a student’s course term does not align with a U-Pass term; Adding previously excluded student bodies who are part of separately operated programs on campus. These students would be neither undergraduate/graduate students and/or are not members of a student association to meet the eligibility criteria for the program (one example of this is the International College of Manitoba which operates on the campus of the University of Manitoba); and Adding a U-Pass for the summer term (May – August). 5 The Public Service is proposing recommendations to address the first two items listed but is not recommending expanding the scope of the program to include additional student groups or adding a summer U-Pass. The Red River College Student Association (RRCSA) has also expressed interest in joining the program. The estimated annual cost of adding them to the U-Pass program, including the impact of lost revenue, is $1.435 million, plus $2.768 million for the one-time purchase of 4 additional buses however the operating impact is offset by the additional revenue generated from the proposed rate increase beyond the annual inflationary adjustment. In addition, the City will utilize one-time prior year approved capital funds facilitated through the extension of the Public Transit Infrastructure Program (PTIF) for the capital cost of the additional buses. This will negate any capital budget impact. The Public Service supports the addition of RRCC to the U-Pass program and recommends including them in the scope of the program. RECOMMENDATIONS 1. That the City enter into four year agreements with the University of Manitoba and the University of Manitoba Students’ Union, the University of Winnipeg and the University of Winnipeg Students’ Association, and Red River College and the Red River College Students’ Association (the “U-Pass Agreements”) for the term September 1, 2020 – May 31, 2024 on the basis of the existing agreements with University of Manitoba, University of Winnipeg and their student associations, as modified by the recommendations set out in this report; 2. That the 2020/2021 U-Pass rate be approved at a rate of $160.75 per term and increase by the rate of inflation annually thereafter; 3. That a second opt-out boundary area defined as outside of the City Boundaries and/or outside of the Perimeter Highway, excluding the area commonly known as St. Norbert, be added as an option for each of the U-Pass Agreements and that each student association be allowed to select either the original or the amended opt-out area that is best suited for their campus for inclusion in their U-Pass Agreement. 4. That a new post-secondary 14-day rolling pass fare product be established and priced at 80% of the cost of a full fare 14-day rolling pass; 5.

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