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2008-12-08_ Supplemental Agenda Packet--Dossier d'ordre du jouri , City o Saint John Common Council Meeting Monday, December 8, 2008 Location: Common Council Chamber Supplemental to Agenda 8.3(a) Saint John Transit 2009 Budget Presentation 1-0.3(a) Section 39 Condition - 99 Simpson Drive 2.4(a)l..,etter to Council respecting City Solicitor and Pension Board - Frank Rodgers 13.0 Letter to Council entitled Proposed Response to Common Council on Public Inquiry Resolution - Elizabeth Gormley Saint John Transit 2009 Budget Presentation Opening Remarks: Mr. Chris Titus, Chairman SJTC Budget Presenter: Mr. Frank McCarey General Manager, SJT ?ac Driving Increased Ridership Sustainability is Essential for It is the belief of the Saint John Transit Commission that a city the size of Saint John should develop a service intended to carry 4,000,000 riders per year - That represents 13% of the population using transit (national standard). Only 8% of Saint John residents are using the service today. Council has already approved funding to allow the completion of a service standards study. We need Council's support to define the ridership target of 4 million passengers per year before submitting an RFP for a service standards study. Federal Funding to support transit infrastructure growth, replacement of an aging bus fleet and introduction of 2 emerging technology has been based on Ridership numbers. 31 SAINT JOHN TRANSIT 3.50 0 • 3.00 2.50 2.00 Ridership Numbers 2000-2009 SJT Ridership 2000 2001 2002 2003 Fare Increase X06--2007 2008 2009 3 SAINT JOHN TRANSIT 6- Benefits Realized from Highest Provincial Ridership • Federal dollars will fund 50% of the cost to build the new Transit Operations Centre. •Federal Dollars have enabled the addition of 9 low floor Orion buses and the subsequent environmental and accessibility benefits. • Next bus -Automatic Vehicle Location. - text messaging to get the next bus arrival. - Google transit maps to plan trips. Satt€t Johc Tr" Omra ims Cmt€o tom== _ 4 Future Benefits of Driving Transit Ridership Federal Investment in Transit - Increased significantly the last few years. That Funding has been based on Ridership. A successful Municipal Sustainability Plan requires INCREASED RIDERSHIP on Transit. The Benefits are numerous... 1. reduced cars on the roads 2. reduced parking spaces 3. improved air quality and health 4. improved travel opportunities for disabled 5. Post Secondary educational opportunities 6. improved employment opportunities for employers and employees 7. reduced greenhouse gas (GHG) emissions 5 Current Commission Ridership Targets Year Ridership Percent ncrease 2008 217001000 +7.6% 2009 219501000 +9.3% 2010 3,100, 000 +5.1% 2011 312501000 +4.8% 2012 314001000 +4.6% 6 L ber zoo 7 to Nov vil ber 200 1, th - Septem come COMEX m Come will Grow they u build it, If you original Ridership Target Now- r~ Ate 1014TI` 7 Benefits of COMEX for Saint John COMEX has reduced 300 cars/day travelling into the City. That reduces 400 metric tonnes of GHG/year. Reduction of 300 cars/day saves the equivalent of the cost of a $9 million Parking Garage. COMEX has cut 2% of commuter traffic. All 4 communities will be paying for COMEX operating costs in 2009 with agreements for 3 years or more - No Cost to Saint John taxpayers in 2009 and beyond. $ SAINT JOIN TRANSIT SAINT JOHN TRANSIT, 1 '4 9 Fare Box Recovery by City 2007 (Population 50,000 to 750,000) Municipal Operating Contribution per Capita 2007(Population 50,000 to 150,000) 10 SAINT JOHN TRANSI - Chi w y`Y ~R Municipal Transit Funding per Passenger($) 2007 - (Population 50,000 to 750,000) 11 Key Budget Metrics Canada Cities 50- Saint John Saint John 2007 150,000 Transit Transit 2008 2007 2007 YTD R/C Ratio 58% 39% 54% 51% (fare box recovery) Ave Fare $1.56 $1.27 $1.48 $1.48 Municipal Op $77.37 $44.72 $28.08 $34.33 cost/Capita Op cost per $1.15 $2.04 $1.38 $1.56 passenger Ridership Saint John Transit 2009 Budget 50% $1.60 $38.35 $1.62 215101000 217001000 219501000 12 High Revenue/Cost (R/C) Ratio • A high Revenue/Cost (R/C) ratio Is considered by many Municipalities to be the result of charging "Too Much" - WW for Too Little Service. T `This approach can be guaranteed to limit Ridership Growth. .13 Funding Realities Driving Ridership Goals... Each additional rider in 2009 will require$1.62 in municipal transit funding. For example, a sustainability plan to increase ridership by 500,000 at the 2009 rate would require funding of $810K. Cost Reduction For every $1.00 reduction in Funding Costs, a reduction of $2.00 in total costs must be made when the revenue/cost ratio is 50%. Accordingly, a 10% reduction in Municipal funding would require a 20% reduction in service levels. 14 SAINT OYIi` TRANSIT 1 T ~V for Saint John Transit Impact of Budget Cuts tion Budget Reduction Amt Expense Reduction Budget /o Reduc Required o $93,876.00 $190,000.00 2/o o $140,814.00 $285,000.00 3/o o $187,752-00 $375,000.00 4/o o $234,690.00 $475,000.00 5/o o Service Reduction (KM) Service Reduction (hrs) Budget to Reduction 0 50 , 000 km 2500 hrs 2to 0 75,000 km 3750 hrs 3/o 0 100,000 km 5000 hrs 4/o 0 125,000 km 6250 hrs 5to 15 Examples of Service Requirements Service Description Annual km traveled Annual hrs Cost of Service Sunday/Holidays 30,000 km 1500 hrs $1121500.00 Loch Lomond 70,000 km 3500 hrs $2621500.00 Martinon 40,000 km 2000 hrs $1501000.00 Milford 25,000 km 1250 hrs $931750-00 Mount Pleasant 30,000 km 1500 hrs $1121500.00 North End 60,000 km 3000 hrs $2251000.00 Portland Place 50,000 km 2500 hrs $1871500.00 Forest Glen 30,000 km 1500 hrs $1121500.00 Saturday service 125,000 km 6250 hrs $4681750.00 16 SAINT JOHN T IN VI A k Our Challenges... • Federa Funding wi ike y be direct y proportiona to Ridership numbers. • 100% Accessibi ity. • Rep acement of an Aging F eet. • ncreased Ridership requires higher investment. • A Transportation Strategy for the City out fining Transits' ro e. 17 SAINT JOHN TRANSI 1 - a rY~" CHOICES The challenge for all Municipalities in Canada is to provide mobility infrastructure. This mobility infrastructure can be developed to support increased auto activity for those individuals who own or operate a car or support increased all inclusive transit usage. Approval of the Saint John Transit budget is a strong sign that the City of Saint John has decided to move in the direction of providing increased mobility in a sustainable and inclusive manner. 18 I SECTION 39 CONDITIONS - 99 SIMPSON DRIVE 1) The maximum number of dwelling units permitted in the existing building be limited to two (2); 2) That there be no dwelling units contained in the basement; 3) In the event that the existing building is destroyed or demolished, any new building constructed on the site can only be used as a single-family dwelling. p November 26, 2008, The Common Council of Saint john, Your Worship and Councillors: In a Telegraph-Journal article of November 24, Brian Stone says, "the only way to get to the bottom of what he calls the City's pension/disability fiasco is to hold a public enquiry." From media reports, it appears that Council is struggling as to what to do next about this suggestion. While it is true that the City has the authority to hold a public enquiry into any civic matter under a Statute that was last used in the early 1970s, history has shown that public enquiries at all levels of government are not easy and simple to carry out. However, if Council considers such action, prudence requires that Council be guided by legal Counsel every step of the way in order to assure that rights are protected and procedural rules followed and appropriate terms of reference adopted. The problem that immediately arises for Council is, how it can assure itself ofthe relevancy and application of the Act, and if proceeded to an enquiry, that all procedural steps are being complied with and other matters followed in line with the law, when conflicts of interest are being declared by the City Solicitor as a member of the Pension Board. Declaring conflicts of interest might be satisfying in a narrow way to the positive law of the Municipalities Act, but there is another question about another part of the law that seems to be ignored. It is connected with the idea of justice and its part of fairness surrounding the perception of bias. The opinions of the City Solicitor are not judicial pronouncements, but until a court rules otherwise, the opinions should carry all the weight of the law for Council's guidance. In a letter to Council dated February 6, 2007,1 pointed out a concern and a danger of a Council policy allowing the City Solicitor to voluntarily serve of City's Boards, Commissions and Committees, I said at that time that this policy "has the potential all the time for conflicts that leave Council without advice the position is responsible for providing ...It should be obvious that this dispute has the potential for more intricate questions from Council." Nothing has changed to weaken this concern, and the present request from citizens for a public enquiry only strengthens the potential for further complications. In a letter to Council in the early 1970s, a former Councilor and lawyer, the late Charles Whelly, Q.C. said about the office City Solicitor that "The City Solicitor must balance the rights of the citizens, usually as people doing business with the City, against their own rights as citizens of the same Corporation. If asked advice, he must give advice bearing in mind not the advantage of the City but the rights of both parties equally; he must not seek loop-holes or test cases in the hope an advantage might be gained by the City over its own citizens." While this letter from Mr. Whelly was not about the City Solicitor serving on City Boards, but was about the independence of the Office and the duty to the citizens from the Office through Council, it indicates to me that any interference with that duty through. voluntary service outside of the Office is wrong, unnecessary and has the potential for harm rather than benefit to the City and its citizens.. It is puzzling; to me why Council has been indifferent to this situation. For if Council turns its back on requests from citizens for a public enquiry, it should be for the right reason, and not because legal advice is unavailable or advice received is perceived by members or the citizens to be clouded by personal interest through membership on the Pension Board. Yours truly, (source verified) Frank Rodgers. The City of Saint John December 8, 2008 His Worship Mayor Ivan Court and Councillors Subject: Proposed Response to Common Council on Public Inquiry Resolution Your Worship and Councillors, At the December 1, 2008 meeting of Common Council the following resolution was passed;. "RESOLVED that Common Council form a committee consisting of the Mayor and two Councillors for the purpose of providing a recommendation to Council respecting the engagement of outside legal council to address the feasibility of proceeding to a public inquiry of the pension plan under our City's legislation." After hearing Council's resolution the Pension Board sent notice to its trustees to hold a special meeting of the Board on December 3, 2008 to discuss Council's motion. We were not able to meet on the December 3, but did meet this morning, and present the following for Council's consideration. A decision whether or not to proceed with a public inquiry should be based on the best information possible, therefore the Board advises Council that it is prepared to provide full disclosure directly to Council on any aspect of the administration of the Pension Plan with the following resolution: "That as always„ the City of Saint John Board of Pension Trustees is prepared to continue to respond in full to any questions Council may have on any aspect of the plan including the operation, administration, funding, governance, etc, of the Pension Plan, and further it is prepared to make available the Board's professional advisors including auditors, accountants, investment managers, investment consultant, and legal advisors, to respond directly to Council's inquiries in a public meeting of Council, at the Board's expense." Sincerer Elizabeth Gormley Secretary, City of Saint John Board of Pension Trustees SAINT JOHN P.O. Box 1971 Saint John, NB Canada E2L 4L1 I www.saintjohn.ca I C.P. 1971 Saint John, N.-B. Canada E2L 4L1