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Home My WebLink AboutCL 14-02 002 Cw¡ o~ REPORT TO COUNCIL FROM: Bruce Taylor, AMCT, CMM City Clerk DATE: May 6, 2002 - REPORT NUMBER: CL 14-02 SUBJECT: 2002 Current and Capital Budgets - Ajax Pickering Transit Authority (APT A) RECOMMENDATION: 1. That the letter iÌ'om the General Manager of the Ajax Pickering Transit Authority dated April 2, 2002 advising of the resolution passed by the Board of APT A regarding the 2002 Current and Capital Budgets of APT A be received. 2. That the Council of the Corporation of the City of Pickering hereby approves the 2002 APT A Current and Capital Budgets as set out in APT A Report 07-02 attached to the April 2, 2002 letter of the General Manager of APT A. ORIGIN: - Resolution of APT A Board passed on March 26, 2002 AUTHORITY: Municipal Act FINANCIAL IMPLICATIONS: As set out in APT A Report 07-02 EXECUTIVE SUMMARY: This Report forwards a summary of the 2002 APT A Current and Capital Budgets to Council for its approval. - BACKGROUND: Please find attached to this Report a letter ftom the General Manager of APT A advising of a resolution passed by APT A on March 26, 2002 to approve the 2002 Current and Capital Budgets of APTA and requesting the approval of the Councils of Ajax and Pickering. Report to Council CL 14-02 Date: May 6, 2002 003 Subject: 2002 APT A Current & Capital Budgets Page 2 The details of the 2002 APT A Current and Capital are set out in APT A Report 07-02, which is attached to the letter iÌ'om the APT A General Manager. - ATTACHMENTS: 1. Letter dated April 2, 2002 iÌ'om General Manager of APT A Prepared By: Á ¿~ Bruce Taylor, City Clerk Attachments Copy: Director, Corporate Services & Treasurer Recommended for the consideration of Pickering City Council - - Of)4 AJAX PICKERING i1ili.1mm AUTHORITY ATTACHMENT#L TO REPORT#~ 1'1- 61..- Ajax Pickering Transit Authority 110 Westney Road South Ajax, ON Canada L 1 S 2CB April 2, 2002. _. Bruce Taylor City of Pickering One The Esplanade Pickering, Ontario. LIV 6K7 REceIVED CITY OF PICKERING APr~ 0 4 2002 CL.ERI('S DIVISION Please be advised that the following resolution was passed by the Board of the Ajax Pickeimg Transit Authority at its Board Meeting held on March 26, 2002. RECOMMENDATION: I. That the Report to the APT A Board of Management APT A 07-02 concerning the APT A 2002 Budget be received; 2. That the APT A Board of Management approve the APTA 2002 Current and Capital Budgets; 3. That the APT A Board of Management approve fare increase and fare harmonization changes contained in this report for implementation effective July 2, 2002. 4. That the Report and Recommendations of the APTA Board of Management regarding the 2002 APTA Current and Capital Budgets be forwarded to the Councils of the Town of Ajax and the City of Pickering for approaval; and .-. 5. The appropriate officials of the Ajax Pickering Transit Authority be given authority to give effect hereto. Should you have any inquiries with respect to this matter, please do not hesitate to contact me. I may be contacted by telephone at (905) 427-5710. Yours Truly, Attachment: Report Number APT A 07-02 Copy: Gil Paterson, Treasurer, APT A Telephone 905-427-5710 . 905-683-4111 . Fax 905-427-3473 www.townofajax.com . www.cityofpickering.on.ca - ß\TTACHfv1E1\!T#.._.,C..TO REÞORT# c¿ ;'1- 0 2- - 005 A1 .. AJAX PICKERING . liI:f'l1~J.:i1l1 . AUTHORITY .TA REPORT TO THE BOARD - FROM: . Ted Galinis General Manager, Ajax Pickering Transit Authority REPORT NUMBER: APTA07-02 DATE: March 19,2002 SUBJECT: APTA 2002 Budget RECO M:M:END A TI ON: 1. Thàt the Report to the APTA Board of.Management APTA '07-02 conce111Îi1g the APTA 2002 Budget be received; . 2. That the APTA Board of Management approve the APTA 2002 Current and Capital Budgets; 3. That the APTA Board of Management approve fare increase and fare hannonization changes contamed in this report for imp1e1nentation effective July 2,2002; 4. That the Report and Recommendations of the APTA Board of Manageme~t regarding the 2002 APT A Current & Capital Budgets be forwarded to the Councils of the Town of Ajax and City of Pickering for approval; and, . .. - 5. The appropriate officials of the Ajax Pickering Transit Authority be given authority to give effect thereto. ORIGIN: General Manager, Ajax Pickering Transit Authority AUTHORITY: Not applicable - 006 Report to Board 07-02 ATTACHI'1ENTtt.J__.ro REPORT #5:-':--., /4- 0.1- Date: March 11, 2002 Subject: 2002 APIA Budget Page 2 FINANCIAL IMPLICA TlaNS: CURRENT BUDGET - APTA 2002 Net Current Core Budget: $ 4,477,294 Increase over 2001 Net Current Expenditures: $ 391,599 . Percentage Increase over 2001: . 9.58% Total 2002 Current Transitional Budget: Total 2002 Additional Requirements Budget: 163,322 53.141 Ajax Pickering Total 2002 APTA Current Budget: ~ 4,693,7571 Increase over 2001 Net Current Expenditures: $ 608,069 Percentage Increase over 2001: 14.88% . ~1,996,2551 ~2,697,502 CAPITAL BUDGET: APTA 2002 Net Capital Core Budget: . . $ 2,109,900 Increase over 2001 Net Capital Expenditures: $ 1,299,700 Total 2002 Capital Transitional Budget: 339,100 ~1,224,50~ Total 2002 APTA Capital Budget: 1$ 2,449,0001 Increase over 2001 Net Capital Expenditures: $ 1,299,700 Percentage Increase over 2001: 113.09% ~ 1,224,5001 * NOTE: Refer to Item (c) in "Funding Sources" below - CURRENT & CAPITAL BUDGET: Total 2002 APTA Capital & Curren~Budget: 1$ 7,142,7571 Increase over 2001 Net Capital & Current Budget: $1,907,762 Percentage Increase over 2001: 36.44% 1$3,220,7551 1$3,922,0021 FUNDING SOURCES: a) Municipal Funding - Being provided by the Town of Ajax and City of Pickering at levels that are in line with the 2001 budgets plus a general increase in line with other municipal departments. b) Regional Funding - Funds were repatriated from the Region and should be used by the municipalities for 2002 Budget needs. Pickering will receive $1.6 million and Ajax will receive $1.2 million. Regional funding in excess of APT A 2002 Budget fInancing requirements shQuld be placed in Transit Reserves Accounts established by Ajax and Pickering. Region funding is being treated as a one-time event to be utilized for required fleet replacement and transit merger transitional costs. - Report to Board 07..02 A IT ACH MEf\!l" # ".~_L RF:O"'RT # C t. l'ý~ 0'1...- 0 n 7 r:.(\"h"\.. ,.~._".,_. Date: March 11, 2002 " Subject: 2002 APT A Budget Page 3 ~ c) Provincial Funding Request - On February 20, 2002, Tra;nsp.ortation Minister Brad Clark announced $100 million for the first year of the Ontario Transit Renewal Program. The municipalities of Ajax and Pickering are. eligible for $873,126 for replacement of buses and major fleet refurbishing. Funding is based on. a 1/3 provincial contribution. The amount of $873,000 includes other capital items thRt have been requested by APTA. Clarification has not yet been provided concerning which projects the Province has deemed eligible or the process for accessing funding. At the direction of the APT A Board, correspondence has been sent to the Province requesting clarification on these issues. . . . d) Provincial Fundin~ Requests - Golden Horseshoe Transit mvestment Partnerships (GTIP) - APTA has made two applications under GTIP and is supporting three other applications: 1. Transit Merger Funding - Total $3.7 million. Please note this includes all of our costs associated with the 1raÎ1sit merger for a three year period. n. Replacement Telephone System and Microwave Communications Link - Total $172,800. 111. Regional Requests - APTA is supporting two Region of Durham requests. "Taunton Road Bus Rapid Transit Implementation" and the development of a "Transit Improvements Implementation Plan". . IV. GO 'Transit Request - APT A is supporting the GO Transit application for "Implementation of a Smartcard-based Fare Collection System in the GTA". - e) Federal Funding - No support to date. - 0 n 8 Report to Board 07..02 '.'"I.l"At~H. !Vi !.-""f....:. /J., \,~ d! (.I" . ! # CL /'1- ú'l--- Date: March 11, 2002 . S~bject: 2002 APTA Budget Page 4 FARE INCREASE AND HARMONIZATION: .Recommended Fare Increase/Harmonization -.Effective July 2, 2002. - Part A Current Current APTA % Inc. 2002 Annual Fare Harmonization Ajax Pickering 02/07/02 Revenue Revenue Senior Cash Fare $0.65 $0.50 $0.65 (60 0-30% 3,000 6,000 (55up) (65 up) up) Student Cash Fare $1.25 $1.00 . $1.25 0-25% 17,000 34,000 . Adult Monthly Pass $46.00 $50.00 $50,00. ' 0-8% 5,000 10,000 GO Co-fare (no change) $0.50 $0.50 $0.50 0% 0 0 Child Fare $0.65 $1.00 $1.00 0-53% 3,500 7,000 Part B Fare Increase Adult Cash Fare $1.50 $1.50 $1.75 16% 24,000 48,000 (Conventional & Sp. Serv.) Senior Pass (no change) $13,00 . N/A $13.00 0% 0 Ö Student Restricted $33.00 N/A $35.00 9% 3,000 6,000 . Student Umestricted Pass $36.00 $38.00. $40.00 5-11% 4,500 9,000 - Separate School Brd. Pass $33.00 $33-.00 $35.00 6% 25,000 50,000 Total Projected Revenue $85,000 $170,000 Fare harmonization between Ajax and Pickering is required to create a common fare structurè for APTA operations. A C9mmon fare structure and discontinuing the Ajax smartcard system are the required fust steps 19 permit APTA buses to be used interchangeably ill Ajax or Pickering. APT A is proposing that a combined process of fare incre<l$es and fare harmonization take effect upon the completion of the school year in June 2002. By that time, the use of smartcards in Ajax will be phased out and replaced with a temporary paper ticket/pass system until such time as the . GO Transit GTA-wide smartcard fare collection system can be introduced in 2003. Fare increases are required to meet our 2002 revenue and cost targets without impacting on the cost to t8.?'-payers of sustaining our core transit service. As new transit routes are introduced, APT A will be required to offset a miIrimum of 50% of the cost with fare box revenue. The - ';.I...'"AC. H'¡y<e..".,..'.'..,'. l\ .. h:> \1 ~ nng Report to Board 07...02 {L !tf-()v . Date: March 11, 2002 Subject: 2002 APT A Bùdget Page 5 armualized impact of fare increases will provide the necessary revenue to sustain. additional service without a significant impact on the rate of taxation for transit in the futur~. . - Fare increases are primarily directed at discretionary transit llsers and will have little or no impact . on the majority of our ftequent customers. Approximately 1/3 of our ,ridership consists of GO Transit rail passengers who will continue to pay $0.50 (co-fare) for trips to and ftom the iram. A further 1/3 of our customers are students who are issued pre~paid passes by the Separate School Board for travel to and ITom school. This group will also feel no fare increase impact for daytime transit use. Students however, will be required to pay an additional $5.00 per month töuse transit services evenings and weekends. This approach is prefeITed by the Separate School Board and is now practiced throughout Durham Region with the exception ofPicke$g. Over time, APTA would benefit ftom a gradual move toward fare harmonization with \Vhitby and Oshawa. The proposed APTA adult cash fare of $1.75 remams Under the. Whitby and. Oshawa $2.00 adult cash fare rate. APTA child and student ticket and pass rates are' also significantly less than Oshawa and Whitby. A common fare structure throughout. Durham Region would p.ermit the introduction of a GT A or Regional Pass with reduced requirements for. reconciling intennunícipal trips and fare integration revenue-sharing payments. . EXECUTIVE SUMMARY: At the APTA Board of Management Meeting of January 29, 2002 staff were directed to take action to both reduce our 2002 budget requirements and pursue funding potential ftom a variety external funding sources. - Based ån a review of 2001 actual costs and revenue, as well as a recommended fare increase to ta1ce effect ill June 2002, the total requested net APTA budget has been reduced by. $346,974 since our last presentation of summary budget figures to the Board. . External APTA funding n-om the Region of Durham and the Province of Ontario has been announced. APT A has made application for additional funding support through the Provincial GTIP inltiative and continues to . pursue funding that may be available related to transitional merger costs. The Canadian Urban Transit Association (CT,JTA) and the Ontario Community Transportation Association (aCTA) are pursuing additional funding potential at the Federal and Provincial levels on our behalf. Additional grant funding has been applied for. If one application is successful, the other two applications will be reduced where there is overlapping capital requests. The additional funds fi:om these grant applications could be trans felTed to the municipality's respective "Transit Reserves" or used to reduce the amounts otherwise payable by the respective municipalities. Those reserves are a critical element in financial planning and will be used to offset future capital . related expenditures. . - (] 1 0 Report to Board 07-02 ATTACH M E!\n I (L- /1.{-O1-. Date: March 11, 2002 Subj ect: 2002 APT A Budget. Page 6 - The 2002 APTA Budget has been presented to and dis~ussed with the Chief Administrative Officers and Treasurers for the Town of Ajax and the City of Pickering. Adequate funds are available through a combmation of municipal contribution, the Province of Ontario and one-time Region of Durham funding to sustain the complete 2002 APTA Current. and Capital Budget. APT A. is requestmg support from the Board of Management and municipal Councils to approve the 2002 Current and Capital Budgets. In order to sustain current transit serVice levels and . remain fully eligible for recently announced Capital funding, APTA requires Board of Management and municipai Co~cil approval of our Core and Capital budget requirements. Beyond 2002, APTA and our municipal funding partners will need to actively pursue sustainable funding sources in order to maximize provincial matching funds and achieve our equipment replacement and growth related objectives. ArT ACHMENTS:. 1. 2. 2002 APT A Budget APT A Budget Reduction Summary Prepared / Approved I Endorsed By: Approved / Endorsed By: - ~~ Gillis Paterson, Treasurer Ajax Pickering Transit Authority - ( 2002 CURRENT BUDGET i\fTACHIVIEr',n / 1.1 REPORT #- ~I '-1- ð;:rTACHMENT # - TO REPORT #fJf.fAij1 AJAX PiCKERING. TRANSIT AUTHORITY APTABUDGET REDUCTIONS March 6, 2002. Account Net Change Highlights of Change Items 2910 - Administration - 2920 - Maintenance 2930 - Conventional . 2940 - Specialized ervices 2945 - Transition Costs $101,498 New Inspector/Trainer position deferred, approx. $10K reduction in instructional training and conference expenses, insurance reduced $10K to reflect 2001 actual costs, smartcard supplies deferred @ $1 OK, various administration equipment and supplies deleted/reduced. . 61,472 Approx. $50K reduction in urgent body repair, brake repair and shop supplies, On-call Mechanic replaced by Servicepersons, Mechanic training reduced 50%, building utility costs reduced approx. $1 OK to reflect 2001 actual costs. 174,768 New Parts/Inventory Supervisor position deferred, reduction in uniforms. Pickering GO office renovations deleted, increased costs for "2" endorsement training, snow removal (reflect new contract). $50K added in general revenue to reflect 2001 actual, $85K added in farebox revenue to reflect recommended fare increase/harmonization effective June 2002. 2,920 Reduction in contracted taxi service - automated trip reservation efficiency. 52,261 Cross-training costs reduced $25K, scope of contracted route review reduced $30K, various supervisory staff training costs reduced approx. . $7K. World Youth Day charter costs added @ $15K.. Total Budget Change .~ < $392,919 - J02 CAPITAL BUDGET . Account Net Change Highlights of Change Items 2910 - Administration 2920 - Maintenance 2390 - Conventional -$ 42,100 Costs added to reflect emergency replacement of office server and datacard fare evasion equipment/supplies. -360 Minor reduction in computer equipment. -3,485 Costs added to reflect current equipment quotes. Reductions in computer equipment. . Total Budget Change -$45,945 ( - $346,974 Total Current and Capital Budget Net Change