TORONTO TRANSIT COMMISSION CHIEF EXECUTIVE OFFICER’S REPORT SEPTEMBER 2014 UPDATE TABLE OF CONTENTS PAGE 1. TTC MONTHLY SCORECARD 2 2. COMMENTARY AND CURRENT ISSUES 5 3. CUSTOMER MEASURES AND IMPROVEMENT PROGRAM PROGRESS 18 4. FINANCIAL COMMENTARY 22 5. CRITICAL PROJECTS 26 1 TORONTO TRANSIT COMMISSION – MONTHLY SCORECARD Key Performance Latest Current Indicator Description Frequency Measure Current Target Status Trend Ref. # CSS Customer Satisfaction Survey Quarter Q2 72% TBD 2.2 Customer Journeys Customer Trips Period P7 39.939M 40.550M 2.3 Punctuality – Subway and Scarborough Rapid Transit (SRT) P7 94.7% 96.0% Line 1 (Yonge-Univ-Spadina) Headway + 3 minutes Period 2.4.1 Headway + 3 minutes P7 96.6% 97.0% Line 2 (Bloor-Danforth) Period 2.4.1 Headway + 3 minutes P7 99.3% 98.0% Line 4 (Sheppard) Period 2.4.1 Headway + 3 minutes P7 97.6% 96.0% Line 3 (SRT) Period 2.4.2 Punctuality – Bus, Streetcar, and Wheel-Trans Bus Headway +/- 3 minutes Period P7 66.1% 65.0% 2.5.1 P7 66.1% 70.0% Streetcar Headway +/- 3 minutes Period 2. 5.2 Wheel-Trans Within 10 minutes of schedule Period P7 85.3% 90.0% 2.5.3 Safety and Security Lost Time Injuries Injuries / 100 Employees Period P7 2.65 TBD 2.6.1 Customer Injuries Injury incidents / 1M Vehicle Boardings Period P7 1.45 NA 2.6.2 Behavioural Safety Index Safety Focused Behaviour Period TBD 2.6.3 Offences against Customers Assault, theft, other Period P7 39 NA 2.6.4 Offences against Staff Assault, threat, other Period P7 31 NA 2.6.5 People Attendance Employee Absence Period P7 6.46% < 6.50% 2.7.1 Operator Hires Actual vs. Budget Period P7 48 48 2.7.2 2 TORONTO TRANSIT COMMISSION – MONTHLY SCORECARD Key Performance Latest Current Indicator Description Frequency Measure Current Target Status Trend Ref. # Device Availability Elevators % Elevators Available P7 99.3% 98.0% P7 2.8.1 Escalators % Escalators Available P7 97.0% 97.0% P7 2.8.2 Fare Purchase Opportunity % TVM’s / PVM’s Available P7 96.0% 96.4% P7 2.8.3 Mystery Shopping and Audits Station Cleanliness Cleanliness Audit Score Quarter Q1 71.0% 75.0% 2.9.1 Vehicle Cleanliness Cleanliness Audit Score Quarter TBD 2.9.2 Information MSS Customer Announcements Score Quarter TBD 2.9.3 Staff Helpfulness MSS Welcoming Staff Score Quarter TBD 2.9.4 Financials TTC Revenue Actual vs. Budget Period P1-7 $672.5M $681.7M 4.1 TTC Operating Expenditure Actual vs. Budget Period P1-7 $918.3M $933.0M 4.1 Wheel-Trans Revenue Actual vs. Budget Period P1-7 $3.2M $3.3M 4.2 W-T Operating Expenditure Actual vs. Budget Period P1-7 $63.5M $66.0M 4.2 Capital Expenditure – Base Actual vs. Budget Period P1-7 $454.4M $612.8M 4.3 Capital Expenditure – TYSSE Actual vs. Budget Period P1-7 $143.0M $332.7M 4.3 3 Key to Symbols On target Positive up from last Target at risk at current trend Positive down from last Off target Negative up from last Negative down from last No change from last Note: The black arrows in the top right corner of the accompanying charts in this report indicate the favourable direction of the Key Performance Indicator (KPI): Higher (or increasing) values for the KPI are favourable Lower (or decreasing) values for the KPI are favourable 4 Part 2 – Commentary and Current Issues 2.1 – Chief Executive Officer’s Commentary The successful launch of our new, state-of-the-art, low-floor streetcar on August 31 on the 510 Spadina route is just one element of our plan to modernize the TTC and to transform the quality and reliability of the service that our customers receive. In addition to the delivery and roll-out of 204 new streetcars and a new maintenance facility, we are making progress on the four other “mega-projects” as I call them. We are continuing the roll-out of PRESTO, the new smartcard system that will ultimately replace tokens, tickets, transfers, and passes. In the late fall, card readers will begin to be installed on our new streetcars and in our busiest subway stations. All TTC buses, streetcars, and subway stations will be progressively equipped over the next three years. Work is progressing on the construction of our subway extension to York University and into York Region, albeit against a very tight construction timescale. Meanwhile, we continue to use selective weekend closures on Line 1 (Yonge-University-Spadina) as we replace 60-year-old signals and track. And the all-out push to transform our culture to one that makes customers feel valued is well underway. We are also continuing with our intensive efforts to identify and deliver ways to make our service more reliable. This is being made possible by bringing in new, expert personnel to take a fresh look at our processes and to import best practices and proven techniques from other transit systems around the world. An excellent example of this involves the steps we are taking to make our bus fleet more reliable. At present, our bus fleet suffers from a level of in-service breakdowns that is higher than the industry norm – largely because we try to put as many of our buses onto the road at the busiest periods to service ever rising numbers of riders. My view is that this is meaningless if the bus does not actually get to its destination due to breakdown – it makes more sense to increase the overall reliability of the fleet and ultimately increase the number of buses on the road. Starting this fall, we will embark upon a high intensity bus maintenance program to clear a backlog of repairs and to increase the overall reliability of our fleet. This will involve a fundamental shift from a “fix upon failure” approach (reactive) to one of reliability centred (proactive) maintenance. This method is well proven in other transit systems and uses data to determine when maintenance should take place to prevent failures from happening in the first place. Our revised approach is based upon good practice that we have imported from our colleagues at Metrobus in St. Louis. Customer journeys (ridership) and passenger revenues were below target. This is a continuing trend that will not enable the 2014 target of 540 million rides to be reached. At this time, it is estimated that year-end ridership will be in the range of 533 to 536 million. This constitutes a 1.5% to 2.1% increase over the 2013 actual of 525 million as opposed to 2.9% growth as originally projected. Subway punctuality on Line 1 (Yonge-University-Spadina) remained below target but is showing steady improvement. Punctuality fell below target on Line 2 (Bloor-Danforth) and remained above target on Line 3 (SRT) and Line 4 (Sheppard). The continuing overall improvement in subway performance is pleasing as the new Operations management team has focused on all aspects of running a subway, including detailed analysis of delays and execution of plans to improve. In October, changes will be made to the subway timetable to make the service more reliable and to add peak capacity on Line 1 and Line 2. Bus punctuality was above target. Streetcar punctuality and Wheel-Trans punctuality remained below target with both services continuing to be negatively impacted by extensive construction work across the city. 5 Employee absence was below target (favourable) and continues to show steady improvement. This reflects the clear direction that I have given to my management team to achieve immediate and sustained improvements in employee attendance. Elevator availability remained above target; escalator availability achieved target. TVM/PVM availability continued to be below target. On the financial side, year-to-date revenues were below budget, primarily due to 4.1 million fewer customer journeys than planned and a lower average fare stemming from higher monthly pass sales. Operating expenses were below budget largely due to the timing of certain non-labour expenses. In spite of the downturn in revenue, I have directed my team to maintain tight controls on expenditures with a view to delivering a balanced budget at year-end. Capital expenditures were below budget due to less-than-expected project activity. 2.2 – Customer Satisfaction Survey The overall customer satisfaction score in Q2 2014 (72%) was consistent with results observed in the previous quarter yet lower than results observed at the same time last year, when satisfaction peaked at 79%. Despite a brief improvement in Q1, satisfaction with streetcar service has declined in Q2 (63%) and is significantly lower than the trend for other modes. Positive trends were evident in the following aspects of customer service (Q2 2013 vs. Q2 2014): cleanliness of subway stations, station staff available to help, appearance of collector booths, cleanliness/lack of litter inside subway trains, maps and information inside vehicles (subway and bus), and ease of hearing announcements (streetcar). Customer perceptions of value for money continue to show a positive trend, with 92% of respondents providing a score of ‘average’, ‘good’, or ‘excellent’. Increasing scheduling frequency of TTC service (to reduce overcrowding) continues to be a leading customer suggestion for providing better value for money. Pride in the TTC and what it means to Toronto has increased significantly since Q1 and is now consistent with the historical trend. 6 2.3 – Customer Journeys 60 There were 39.939M customer journeys (ridership) taken during Period 7 2014, which was 50 0.950M (2.4%) more than the 38.989M journeys taken during the comparable period in 2013.