1 Report No. 8 of the Transit Committee

THE REGIONAL MUNICIPALITY OF YORK

REPORT NO. 8 OF THE REGIONAL TRANSIT COMMITTEE MEETING HELD ON OCTOBER 4, 2001

For Consideration by The Council of The Regional Municipality of York on October 11, 2001

Chair: Regional Councillor Diane Humeniuk, Chair

Members: Regional Councillor Barrow Regional Councillor Joyce Frustaglio Regional Chair B. Fisch

Staff Present: P. Carlyle, S. Cartwright, D. Gordon, P. May, K. Price, E. Wilson

The Transit Committee began its meeting at 9:35 a.m. on October 4, 2001.

1 SERVICE CONTRACT EXTENSION YORK REGION TRANSIT (CAN-AR COACH SERVICES)

The Transit Committee recommends the adoption of the recommendations contained in the following report, September 25, 2001, from the Commissioner of Transportation and Works: 2 Report No. 8 of the Transit Committee

1. RECOMMENDATIONS It is recommended that: 1. Regional Council authorize exercising the option for a one year extension to the transit service contract between the Region of York and Can-ar Coach Services - A Division of Tokmakjian Ltd. for the provision of conventional transit services in the Vaughan area.

2. The extension to the contract be on the same terms and conditions as the original contract with an increase in the hourly operating rate to $52.75, plus GST.

3. An additional amount of $100,000 be included in the 2002 Business Plan and Budget to reflect the increase in the contract rate.

4. The Regional Solicitor be authorized to prepare any necessary contract documents.

5. The Regional Chair and Clerk be authorized to sign any necessary contract documents on behalf of the Region.

2. PURPOSE The purpose of this report is to inform Regional Council of the status of the conventional transit service contract in the City of Vaughan and to seek approval to exercise the option to extend the current contract with Can-ar Coach Services for a one year period ending January 25, 2003.

3. BACKGROUND Can-ar is currently contracted by the Region of York to operate conventional transit services in the City of Vaughan area. Under the terms of the agreement, Can-ar trains and supervises bus drivers to operate the service. They also perform servicing and general repairs on 26 Region-owned buses and an additional 9 buses leased from Can-ar. The contract, which was executed on January 1, 2000, expires on January 26, 2002. The Region at its sole discretion has the right to extend the contract for a one year period.

There have been several meetings between Regional staff and Can-ar regarding exercising the option to extend the contract for one additional year. The proposed contract extension is being pursued in order for the Can-ar contract to expire with other transit operating contracts for services in the Town of Richmond Hill and the Towns of Newmarket and Aurora. 3 Report No. 8 of the Transit Committee

4. ANALYSIS AND OPTIONS Can-ar has provided a good level of service for transit customers and the Region. They operate a fully equipped maintenance and operations facility central to transit services in the Vaughan area. Also, various divisions associated with Can-ar deal in major bus refurbishing and mechanical rebuilds for municipal transit systems throughout Ontario. This allows Can- ar to respond to unscheduled maintenance items quickly and with minimal disruption to service.

Exercising the option for a one year extension of the Can-ar contract would allow it to coincide approximately with the termination of the Pacific Western contract in the Richmond Hill area and the proposed Laidlaw contract extension in the Newmarket and Aurora areas. If approved, this will enable staff to standardize the contract terms and conditions and proceed with a simultaneous competitive bid process in the spring of 2003.

The Region compensates the contractor for the operation and maintenance of the bus service based on an hourly rate for each service hour the buses operate. The hourly rate in this contract has been fixed at $51.50 since 1999. No inflationary or fuel escalation increases have been paid since that time. There are also provisions in the existing contract whereby Can-ar is compensated an additional $3 per hour for supplying contractor-owned buses and $10 per hour for operating services on statutory holidays. The Region does not pay the contractor for the cost to ‘deadhead’ buses between the garage and the start of the route, nor are there minimum daily charges for each bus put into service.

Given that compensation rates to Can-ar have not increased in the past 3 years and fuel costs have significantly increased since last year, a modest hourly rate increase is warranted. Staff are seeking Council approval to exercise the option to extend the contract for one additional year and to increase the hourly rate by 2.4%, or $1.25, to $52.75 per hour, plus GST. This proposed rate is still lower than the hourly rate charged in the transit service contracts for the Markham and Richmond Hill areas.

5. FINANCIAL IMPLICATIONS The existing hourly contract rate with Can-ar has remained unchanged since 1999. Given the significant increase in fuel costs and other inflationary pressures, an increase in the hourly rate by $1.25 to $52.75 is reasonable. Can-ar operates approximately 75,000 revenue service hours which equates to an annual operating cost, including the proposed rate increase, of $3,957,000, plus GST. Approximately $97,000 would be attributable to the proposed rate increase.

Funding for this contract, including the proposed rate increase, will be included in the 2002 Business Plan and Budget. 4 Report No. 8 of the Transit Committee

6. LOCAL MUNICIPAL IMPACT The extension of the Can-ar contract will ensure uninterrupted conventional transit service for the Vaughan area.

7. CONCLUSION It is recommended that the option be exercised to extend the contract with Can-ar Coach Services – A Division of Tokmakjian Limited, for the provision of public transit service in the Vaughan area, for one year at an hourly rate of $52.75, plus GST.

2 SERVICE CONTRACT EXTENSION YORK REGION TRANSIT (LAIDLAW TRANSIT LIMITED)

The Transit Committee recommends the adoption of the recommendations contained in the following report, September 25, 2001, from the Commissioner of Transportation and Works:

1. RECOMMENDATIONS It is recommended that: 1. Regional Council authorize a fifteen month extension to the transit service contract between the Region of York and Laidlaw Transit Limited for the provision of conventional transit services in the Aurora and Newmarket areas.

2. The extension to the contract be on the same terms and conditions as the original contract with an increase in the hourly operating rate to $47.25, plus GST, for Region- owned buses and $39.18, plus GST, for contractor-owned buses, and that provision be made in the contract for the installation and maintenance of electronic fareboxes.

3. An additional amount of $58,000 be included in the 2002 Business Plan and Budget to reflect the increase in the contract rate.

4. The Regional Solicitor be authorized to prepare any necessary contract documents.

5. The Regional Chair and Clerk be authorized to sign any necessary contract documents on behalf of the Region.

2. PURPOSE The purpose of this report is to inform Regional Council of the status of the conventional transit service contract in the Towns of Newmarket and Aurora and to seek approval to 5 Report No. 8 of the Transit Committee

extend the current contract with Laidlaw Transit Limited for a fifteen month period ending March 29, 2003.

3. BACKGROUND Laidlaw Transit Limited is currently contracted by the Region of York to operate conventional transit services in the Town of Newmarket and the Town of Aurora. Under the terms of the agreement, Laidlaw trains and supervises bus drivers to operate the service. They also perform servicing and general repairs on 21 Region-owned buses. The contract, which was initially executed in July, 1993, and subsequently amended and extended, now expires on December 31, 2001.

There have been several meetings between Regional staff and Laidlaw regarding a short term contract extension. An extension is being pursued in order for the Laidlaw contract to expire with other transit operating contracts for services in the City of Vaughan and the Town of Richmond Hill.

4. ANALYSIS AND OPTIONS Laidlaw Transit Limited has provided a good level of service for transit customers and the Region. They operate a fully equipped maintenance and operations facility central to transit services in the Newmarket and Aurora areas.

A fifteen month extension of the Laidlaw contract would coincide approximately with the termination of the Pacific Western contract in Richmond Hill and the Can-ar Coach contract in Vaughan if a one year extension option to that contract is exercised. If approved, this will enable staff to standardize the contract terms and conditions and proceed with a simultaneous competitive bid process in the spring of 2003.

The Region compensates the contractor for the operation and maintenance of the bus service based on an hourly rate for each service hour the buses operate. Staff have negotiated a contract extension, subject to Council approval, whereby the current hourly rate would increase by 3.1%. This proposed rate change will increase the hourly base rate by $1.40 to $47.25 per hour, plus GST. There are also additional buses owned and operated by Laidlaw which are specifically used for school runs. The hourly rate for these converted school buses will be increased by $1.18 to $39.18, plus GST. Although the proposed increase of 3.1% is slightly higher than the rate of inflation, it is reasonable given the large increase in costs associated with maintaining an aging bus fleet. The proposed hourly rate will also be fixed for the 15 month contract extension.

The proposed contract extension also includes provisions relating to the maintenance and operation of electronic fareboxes. In order to standardize farebox equipment in the Region’s bus fleet and strengthen cash handling procedures, staff will be including funding in 6 Report No. 8 of the Transit Committee

the 2002 Business Plan and Budget to replace the existing mechanical fareboxes with electronic fareboxes for the vehicles serving the Newmarket and Aurora areas. The installation and ongoing maintenance costs of the new fareboxes will be the Region’s responsibility.

5. FINANCIAL IMPLICATIONS The existing hourly contract rate with Laidlaw is $45.85 for conventional buses and $38.00 for the extra volume school bus service. Staff have negotiated a rate increase of $1.40 which would adjust the hourly rate to $47.25 for conventional bus services. A $1.18 per hour increase for the special school bus services is proposed which would adjust that hourly rate to $39.18. Total operating hours in Newmarket and Aurora are approximately 41,000 hours. The total annual operating cost for 2002, based on the current service hours and the proposed rate increase, would be approximately $1,880,000, plus GST. Approximately $58,000 would be attributable to the proposed rate increase.

Funding for this contract, including the proposed rate increase, will be included in the 2002 Business Plan and Budget.

6. LOCAL MUNICIPAL IMPACT

The extension of the Laidlaw contract will ensure uninterrupted conventional transit service for the Newmarket and Aurora areas.

7. CONCLUSION It is recommended that the contract with Laidlaw Transit Limited for the provision of public transit services within the Town of Newmarket and Town of Aurora, be extended for fifteen months at an hourly rate of $47.25, plus GST, for Region-owned buses, and $39.18, plus GST, for contractor-owned buses, and that provision be made in the contract for the installation and maintenance of electronic fareboxes.

3 STORAGE AND MAINTENANCE OF YORK REGION SPECIALIZED TRANSIT VEHICLES

The Transit Committee recommends the adoption of the recommendations contained in the following report, September 25, 2001, from the Commissioner of Transportation and Works: 7 Report No. 8 of the Transit Committee

1. RECOMMENDATION It is recommended that: 1. Staff be authorized to issue a Request for Proposals for the storage and maintenance of the Region’s specialized transit vehicles, at a facility or facilities located in the Region’s urban transit service areas.

2. PURPOSE The purpose of this report is to seek Regional Council authorization for York Region Transit (YRT) staff, in conjunction with the Region’s Supplies and Services Branch, to issue a Request for Proposals (RFP) to relocate the storage and maintenance of the Region’s specialized transit vehicles to a facility or facilities in the Region’s urban transit service area. The vehicles in question are currently being stored and maintained at yards owned by several different area municipalities.

3. BACKGROUND For some twenty years, the municipalities of Markham, Vaughan, Richmond Hill, Aurora and Newmarket have operated specialized transit vehicles for the transportation of persons with the disabilities as part of their municipal transit operations. On January 1, 2001, the Region of York assumed responsibility for the delivery of public transit services throughout the Region; however, some of the area municipalities have continued to store and maintain the specialized transit vehicles under an interim service arrangement with the Region.

The following is a summary of the current storage and maintenance arrangements:

S Richmond Hill - In 1996, Richmond Hill Transit began operating its three specialized transit vehicles as a fixed route “Community Bus” service operated by their conventional transit contractor, Pacific Western Ltd. Pacific Western is currently responsible for the storage and maintenance of the vehicles, and will continue to do so at least through to early 2003 when their contract expires.

There are also two small vans that are stored, maintained and operated by local taxi contractors, Advance-Unique Taxi & Limousine and A Quality Taxi.

S Markham - Five specialized transit vehicles are currently stored and maintained at the Town of Markham’s works yard at 555 Miller Avenue. The vehicles are operated by YRT staff.

Two small vans also operate in the Markham area. These vehicles are maintained at the Markham works facility; however storage is provided by a local taxi contractor, AAA Taxi, who also operate the vans.

Markham will continue to store the five specialized transit vehicles, and maintain all of the vehicles, through to the end of the year. 8 Report No. 8 of the Transit Committee

S Vaughan - Four specialized transit vehicles are stored at the City of Vaughan’s operations centre at 2800 Rutherford Road. Maintenance is done by Al Palladini Pinetree Motors located at Weston Road and Highway No.7. The vehicles are operated by YRT staff. Effective October 1st, the vehicles will be stored on a temporary basis at the Region of York operations centre, which is located is located immediately next door to the Vaughan facility.

S Newmarket/Aurora - Five mobility buses are stored at the Town of Newmarket operations centre at 623 Timothy Street. The vehicles are maintained by the Region’s conventional transit contractor for the area, Laidlaw Transit, and are operated by YRT staff. Effective October 1st, the vehicles will be stored on a temporary basis at the Laidlaw facility.

4. ANALYSIS AND OPTIONS Interim service agreements have been prepared by Regional staff which, among other things, provide for the storage and maintenance of specialized transit vehicles during 2001 by certain area municipalities. These agreements are awaiting execution by the area municipalities. YRT will assume this responsibility at, or before, year end.

An RFP process is proposed in which YRT will seek out private sector proponents to store and maintain the specialized transit vehicles. It is proposed the three such contracts be awarded, one for the Newmarket/Aurora area, and two for south York Region, so as to minimize vehicle deadhead costs.

Proponents will be required to supply information and associated costs for the following: S supply of fuel S all regular maintenance, including major transmission and engine components S parts inventory S daily washing and cleaning of buses S drivers’ room, including locker facilities S revenue collection and storage S indoor/outdoor vehicle storage S insurance

5. FINANCIAL IMPLICATIONS The 2001 Business Plan and Budget contains $227,500 for the maintenance of the specialized transit vehicle fleet. It is anticipated that these costs will not increase with the relocation of the storage and maintenance facilities and, in fact, have the potential to be reduced. 9 Report No. 8 of the Transit Committee

Once the proposals are received, a financial analysis will be completed to compare the costs under the current arrangement with the area municipalities versus contracting out to private sector partners.

6. LOCAL MUNICIPAL IMPACT With the awarding of contracts to private sector partners as proposed, all of the affected area municipalities will have been relieved of their current vehicle storage and maintenance responsibilities.

7. CONCLUSION It is recommended that YRT staff, in conjunction with the Region’s Supplies and Services Branch, be authorized to issue an RFP to receive proposals for the storage and maintenance of the Region’s specialized transit vehicles.

4 YORK REGION TRANSIT 2002 MARKETING PLAN

The Transit Committee recommends the adoption of the recommendations contained in the following report, September 25, 2001, from the Commissioner of Transportation and Works:

1. RECOMMENDATIONS It is recommended that: 1. The York Region Transit 2002 Marketing Plan be approved in principle.

2. The financial aspects of the plan be considered in the preparation of the 2002 Business Plan and Budget.

2. PURPOSE The purpose of this report is to provide Transit Committee with an overview of the York Region Transit 2002 Marketing Plan and to seek approval in principle of the plan.

3. BACKGROUND In April 2001, Interkom Creative Marketing was retained to produce a Marketing and Communications Plan for the new York Region Transit (YRT) system. Their work included the development of the system’s identity, an amalgamated Rider’s Guide, a website and a comprehensive marketing and communications strategy for 2002. Each stage of the process involved input from a study Technical Committee, Transit Committee, senior management at the Region and transit customers. 10 Report No. 8 of the Transit Committee

Over the past four months, staff have begun to introduce the exciting new YRT system identity to the public. Some of the buses now have our new logo and paint scheme, the new Rider’s Guide was distributed in September, and the website is up and running with over 500 visits in its first week. The next step is to effectively communicate and promote public transit as a convenient transportation choice for the residents of York Region.

4. ANALYSIS AND OPTIONS York Region’s population and employment growth is one of the highest in Canada. In order for the transportation network to keep pace with this growth, public transit must become an integral element in a balanced transportation system.

At this time, approximately 8% of peak period trips within York Region are made by public transit. In order to encourage greater public transit use, the level of transit service must be increased and a strong, complementary strategic marketing plan developed which communicates the benefits of transit to the public.

The York Region Transit 2002 Marketing Plan is written as a business plan, and focuses upon five essential target groups, as follows:

S Current customer S Potential customer S Public relations S Business and political S Internal

Each of these groups are fundamental to the growth and development of a strong and viable public transit system. For each of the groups, strategies or activities are provided that will communicate the benefits of public transit and encourage ridership growth. The strategies will strive to put the customer first and to position York Region Transit as the transportation choice of the future.

5. FINANCIAL IMPLICATIONS Budget estimates have been included for each strategy or activity. The estimates are based primarily upon ‘external’ costs and do not include YRT staff time. However, approximate staff hours required to carry out each element of the plan are shown. Given that we are marketing a new system, many of the budget estimates include start-up costs. Much of these costs will allow for the establishment of the programs which will become blueprints for the future. Therefore, it is anticipated that the following years may require less staff time, effort and financial resources. Year 2002 costs are projected to be $353,000. 11 Report No. 8 of the Transit Committee

6. LOCAL MUNICIPAL IMPACT The York Region Transit 2002 Marketing Plan will assist in furthering the transportation goals of the area municipalities, particularly in increasing public transit’s market share. Most of the marketing strategies will be system wide, thus their effects will be felt across the entire Region.

7. CONCLUSION A strong and convenient public transit system, which effectively targets the needs of its customers and potential customers, is required for 2002. In addition to improving transit service coverage and frequency, it is critical that the services be effectively communicated to the public. This marketing plan will provide the tools to convince the customer, or potential customer, that they are not buying public transit, but in fact are buying convenience, making a wise environmental choice and doing so economically.

The Executive Summary of the plan is attached to this report and the complete plan is available for review from the Transit Branch.

(A copy of the attachment referred to in the foregoing has been forwarded to each Member of Council with the October 4, 2001, Transit Committee agenda and a copy thereof is on file in the Office of the Regional Clerk.)

5 UPDATE – COMMITTEE PROCEEDINGS

The Transit Committee advises Council of the following matters having been considered by the Transit Committee with the following action:

PRESENTATIONS

1. IBI Group made a presentation regarding the Five Year Service Plan Study. Mr. Dave Roberts presented the plan relating to the conventional transit service and Mr. Steven Wilks presented the specialized transit service plan.

The Committee received the presentations and congratulated the IBI Group and staff on their excellent work. Staff was requested to provide additional information on eligibility criteria and other operating statistics for specialized services in the Region of Peel and how they compare to services in York Region.

The Committee also recommended two public information sessions be held as follows: Wednesday, October 24, 2001 in Richmond Hill and Thursday, October 25, 2001 in Newmarket. It was also recommended that the results of the public information sessions be presented at the November 1st Transit Committee meeting. It was further recommended that a workshop be organized to present the draft Five Year Service Plan Study to members of 12 Report No. 8 of the Transit Committee

Regional Council, area municipal councils and senior staff from both the Region and the area municipalities.

Staff was also requested to meet with representatives of the Vaughan Corporate Centre business community regarding bus scheduling concerns for employees.

2. The presentation by Interkom Creative Marketing regarding the Marketing and Communications Plan Study was deferred.

3. Robert M. Prentice, Director of Corporate Services/Town Clerk, Town of Newmarket, June 26, 2001, enclosing a copy of Resolution R8-2001 Gasoline Taxes, adopted by Newmarket Council at its meeting held on June 25, 2001 and requesting support from the Regional Municipality of York, Region of York Transit Committee and all area municipalities.

The Committee received the communication and recommended that Newmarket Council be advised that the Committee does not support Resolution R8-2001 Gasoline Taxes, adopted by Newmarket Council at its meeting held on June 25, 2001, as the Resolution made no reference to public transit. However, if Newmarket Council wished to consider amending the Resolution to include in their request to the Federal and Provincial Ministers of Transportation to dedicate and return a portion of the fuel tax to Regional and Municipal Governments for road and bridge maintenance and reconstruction and for public transit, the Committee would reconsider supporting the amended Resolution.

OTHER BUSINESS

4. Mr. Gordon introduced the new Transit management group implemented as part of Phase 2 of the Organizational Structure: Irene McNeil, Manager of Service Planning; Mary-Lou Johnston, Manager of Marketing and Customer Service; Rick Takagi, Manager of Operations and William Newton, Manager of Specialized Services.

The Transit Committee adjourned at 12:04 p.m.

Respectfully submitted,

October 4, 2001 D. Humeniuk Newmarket, Ontario Chair

(Report No. 8 of the Transit Committee was adopted, without amendment, by Regional Council at its meeting on October 11, 2001.)