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The Regional Municipality of York Report No. 8 of The 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.
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