STAFF REPORT

January 4, 2000

To: Administration Committee

From: Executive Director, Human Resources

Subject: Provision of a TTC METROPASS to Senior Management Staff

Purpose:

The purpose of this report is to comment on the provision of a TTC METROPASS for use by senior management staff.

Financial Implications and Impact Statement:

Not applicable

Recommendations:

It is recommended that this report be received for information.

Background:

At its meeting held on November 30, 1999, the Administration Committee approved a report from the Chief Administrative Officer concerning the Form of Employment Contract for Senior Management Staff. One of the pro-forma employment contract provisions is a rental automobile for work-related purposes and personal use as part of overall compensation. The vehicle and related costs are taxable benefits. The Administration Committee requested information concerning the use by senior management staff of a TTC METROPASS.

Comments:

A rental vehicle and related expenses are provided to Commissioners, Executive Directors/General Managers and equivalent staff positions at the discretion of the Chief Administrative Officer. This is appropriate as part of the remuneration package in order to attract and retain high calibre senior executives and consistent with the compensation practices of other large public and private sector employers. The vehicles must be North American manufactured, a four-door type with minimum seating for four and acquired based upon proper procurement procedures.

The vehicles are for personal use and work-related purposes in order to:

- recognize that senior staff have responsibilities across a wide geographical area in the entire City, and in some cases, beyond City boundaries;

- recognize that senior staff must attend meetings outside normal working hours;

- increase access to City work locations, including those not easily reached by public transit;

- optimize efficiency in the conduct of City business, including travel from home to work sites and meeting venues external to headquarters location.

An example is the position - General Manager, Water and Waste Water, responsible for and with

staff located at fifty-five (55) City work sites.

The employee is required to provide vehicle use logs, indicating personal and business use and

vehicle expenditures to permit determination of the taxable benefit applicable to the employee.

The portion of vehicle rental amount, plus taxes and operating costs and other expenses paid by

the City and determined to be a taxable benefit is shown on the employee's T-4 (T-4A) for

income tax purposes as prescribed by Revenue Canada.

Provision of a TTC METROPASS to senior management staff will not satisfy the work-related requirements to travel which are inherent in their positions. In respect of overall remuneration, an alternative to the provision of a rental vehicle for this group of staff would be additional salary compensation of $8,000- $10,000 per annum.

Conclusions:

It is necessary to provide appropriate total compensation to senior management staff and support the greatest level of efficiency in the conduct of City business. The provision of a TTC METROPASS does not meet these objectives.

Contact:

Brenda Glover

Executive Director, Human Resources