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Annual Report. Metrolinx

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CONFIDENTIAL MEMORANDUM To: Metrolinx Board of Directors From: Jennifer Gray Jennifer van der Valk Chief Financial Officer Chief Communications Officer Date: June 24, 2021 Re: Metrolinx 2020-21 Annual Report Executive Summary Metrolinx is legislatively required to prepare an Annual Report, detailing the organization’s achievements, major accomplishments and financial statements from the fiscal year. The Annual Report has been reviewed by the Audit, Finance, and Risk Management Committee and is being recommended for the Board of Directors’ approval, following which the report will be submitted to the Minister of Transportation for approval. Once approved by the Minister, the Annual Report will be made publicly available on the Metrolinx website. Recommendation RESOLVED, on recommendation of the Audit, Finance, and Risk Management Committee: THAT, subject to any comments received from the Metrolinx Board of Directors and the Audit, Finance, and Risk Management Committee, the Metrolinx Annual Report 2020-21 be approved; AND THAT Audited Financial Statements for Metrolinx for the year ended March 31, 2021 as appended to the 2020-21 Annual Report be approved; AND THAT the CEO submit the Annual Report to the Minister of Transportation in accordance with the Metrolinx Act, 2006; AND THAT the CEO submit the approved Audited Financial Statements to the Ministers of Finance and Transportation. Background The Annual Report includes highlights of significant achievements and milestones achieved within the 2020-21 business year. Performance on safety targets as well as our capital program, including the progress made on the GO Expansion program, rapid transit projects and subways portfolio are outlined the report. Our customer experience deliverables for GO, PRESTO and UP Express are also discussed against planned targets for the year. Building on last year's COVID-19 response measures, the report includes information on mitigation efforts, business continuity implementation and adjustments to our operations, to maintain delivery of our services and mandate in the region. The Annual Report is consistent with the guideline provided by the Province for Annual Reports in the Agencies and Appointments Directive and is in accordance with the requirements of the Metrolinx Act, 2006. The Audit, Finance, and Risk Management Committee has also reviewed the Annual Report consistent with the Committee’s mandate. Next Steps The Annual Report draft will be finalized upon approval by the Board of Directors, signed by the Board Chair, and submitted to the Minister of Transportation in accordance with section 33 of the Metrolinx Act, 2006. Once approved by the Minister of Transportation, an electronic version of the 2020- 21 Annual Report will be posted to Metrolinx’s website at: http://www.metrolinx.com/en/aboutus/publications/annual_reports.aspx Respectfully submitted, Jennifer Gray Jennifer van der Valk Chief Financial Officer Chief Communications Officer Attachment: Metrolinx Annual Report 2020-21 – Draft METROLINX 2020-21 ANNUAL REPORT 2 Fall 08 Annual Report 2020-2021 Table of Contents Land Acknowledgment ........................................................................................... .................................................3 Message from the Chair ............................................................................................................................................4 Message from the CEO ...............................................................................................................................................5 Vision, Mission, Values & Mandate .......................................................................................................................7 Introduction ....................................................................................................................................................................8 Description of 2020-2021 Activities ...................................................................................................................9 Financial Highlights ................................................................................................................................................9 Report on Non-Financial Activities ....................................................................................................................11 Everyone Safe ............................................................................................................................................11 Engaged People ........................................................................................................................................13 Trusted Business Partner ......................................................................... .................................................15 Satisfied Customer ....................................................................................................................................21 Governance ...................................................................................................................................................................26 Management Discussion & Analysis .................................................................. .................................................28 Audited Financial Statements .............................................................................. .................................................51 Appendices ...................................................................................................................................................................79 Appendix A. 2020-21 Strategic Objectives and Status Chart .........................................................................79 Appendix B. Metrolinx GRI Report .....................................................................................................................84 Annual Report 2020-21 2 Land Acknowledgement Let us take a moment to acknowledge that we are on the traditional territory of many nations. In particular, the Mississaugas of the Credit, the Anishnabeg, the Haudenosaunee and the Wendat Peoples. We acknowledge that Metrolinx operates on these lands and has a responsibility to work with the original keepers of this territory and the many Indigenous Peoples living here today. Annual Report 2020-21 3 Message from the Chair Metrolinx has the challenging mandate of providing leadership in the co-ordination, planning, financing, development and implementation of an integrated transit network in the Greater Golden Horseshoe. This is no small feat and I am proud to say that over the past year Metrolinx rose to the challenge, even in the face of the global COVID-19 pandemic. Our dedicated front-line staff provided a vital transit service to keep the people of this region moving safely, while many of our office staff switched seamlessly to remote working. We continued to deliver on our mandate, working to achieve the vision of a world-class transit and transportation system in Ontario. In 2020-21, Metrolinx significantly advanced our capital program despite the challenges presented by the pandemic. More than $3.9 billion dollars were invested to deliver several key milestones in the GO Expansion, Rapid Transit and Subway programs. These milestones included the opening of the new Union Station Bus Terminal, the construction of the new Kipling GO and Bloomington GO Stations, commencing two tunnelling contracts in our Subways program, and enhancing customer experience with free Wi-Fi on GO buses and trains and the PRESTO open payment pilot. The integrated transit network that we are building in the Greater Golden Horseshoe will provide significant economic benefits for decades to come. As with many public transit organizations across the globe, the pandemic has significantly impacted Metrolinx’s operations with unprecedented reductions in ridership and revenue due to the necessary public health restrictions to help reduce the spread of the virus. We are, however, seeing the light at the end of the tunnel and early signs that people are ready to return to our services as vaccinations ramp up. Metrolinx is poised to welcome riders back safely, and we’re looking forward to playing a key role in restarting and revitalizing the Ontario economy, in 2021-22 and beyond. Annual Report 2020-21 4 Message from the CEO This fiscal year proved to be remarkable in many ways. As was the case for many organizations, our response to the pandemic dominated our year. We made huge operational adjustments to maintain the continuity of our business and the delivery of our capital program. We made significant safety investments to ensure our customers could confidently rely on our life-line transit services. At the end of the business cycle, notwithstanding considerable challenges, we outperformed our key performance targets. We recorded our lowest-ever Lost Time Injury Frequency rate (LTIFR) at 0.7. This KPI was at 4.8 in January 2018. For several years now we have continuously improved our organizational safety culture, not only among employees, but also among our contractors. Our Safety Never Stops campaign to combat COVID continued throughout the year, and we implemented more than 65 safety measures at our stations, on our vehicles and at all offices and facilities. Our focus on safety along with on-time performance ensured we positively impacted customer satisfaction throughout the year. In March, GO achieved a remarkable 87%
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