May 12, 1999

Dear Ms. Wong:

At its meeting on Wednesday, May 5, 1999, the Commission considered the attached report entitled, "Federal Bus Deregulation."

The Commission adopted the Recommendation embodied in the above report and directed that the report be forwarded to the City of Toronto Planning and Transportation Committee and City of Toronto Council for the purpose of having this report forwarded to the Board of Directors for the Federation of Canadian Municipalities with a request that the Federation support the concerns of the Toronto Transit Commission in their discussions with the Federal Minister of Transportation relating to this matter.

The Commission also reports, for the information of the City Planning and Transportation Committee and City of Toronto Council, having taken the following action:

1.That the report be forwarded to the Federal Minister of Transportation with a request that Bill C-77 be amended so that it explicitly does not limit the ability of a province or combination of provinces to regulate extra-provincial bus undertakings when these undertakings are operating within one municipality or within a contiguous urban area, whether such contiguous urban areas are within one province or in more than one province;

2.That the report be forwarded to the Canadian Urban Transit Association advising that the Toronto Transit Commission supports their position with respect to this matter; and

3.That the General Counsel for the Toronto Transit Commission submit a further report on the paramountcy and ultra vires issues relating to this matter.

The foregoing is forwarded to the City of Toronto Planning and Transportation Committee and City of Toronto Council for the necessary action detailed above.

Sincerely,

A.J. Chocorlan

Interim General Secretary

1-64 - Attachment

TORONTO TRANSIT COMMISSION

REPORT NO.

MEETING DATE:May 5, 1999

SUBJECT:FEDERAL BUS DEREGULATION

RECOMMENDATION

It is recommended that the Commission support the position of Canadian Urban Transit Association (CUTA) in opposing federal legislation to deregulate extra-provincial bus transportation with respect to operations within urban areas.

BACKGROUND

The federal Bill C-77 (an Act to Amend the Motor Vehicle Transport Act, 1997) as drafted, provides that unless the Minister of Transportation specifically extends time for which Sections 10 to 10.4 are in force, then commencing from two years after the legislation is passed, the province will have no ability to regulate intra-provincial transportation as performed by extra-provincial bus undertakings. Any carrier who performs any extra-provincial service would be covered by this deregulation and would be exempt from provincial law, including provincial legislation and regulations that give municipalities exclusive rights to provide urban transit services within their jurisdictions. If this occurs, extra-provincial bus undertakings will seriously detract from municipal transit agencies' ability to provide economic and comprehensive public transit service, and will seriously impair the efficiency and effectiveness of these important public services.

On January 1, 1998, the City of Toronto amalgamated, and pursuant to the City of Toronto Act (the Act), the Toronto Transit Commission was continued with all of its former powers and functions. In particular, Section 30 provides as follows:

30.(1) The commission,

(a) shall consolidate and co-ordinate all forms of local passenger transportation within the urban area, except railways incorporated under federal or provincial statutes and taxis, and shall plan for the future development of local passenger transportation in the urban area so as to best serve its inhabitants;

(b) has, with respect to the urban area, all the powers with respect to local passenger transportation that the former commission had with respect to any part of the urban area on December 31, 1953;

(c) has all the powers of a municipal council with respect to local passenger transportation systems.

Section 30 (3) of the Act, further expands on the powers and functions of the Toronto Transit Commission as follows:

(3) Without restricting the generality of subsection (1), the commission has the following functions:

1. To construct, maintain, operate, extend, alter, repair, control and manage a local passenger transportation system in the urban area by means of surface, underground or overhead railways, tramways and buses, or any other means of local passenger transportation except railways incorporated under federal or provincial statutes and taxis.

2. To establish new local passenger transportation services in the urban areaas and when required and to change, reduce or abolish any services if the commission considers that desirable.

3. If the commission considers it desirable, to establish, construct, manage and operate parking lots for the parking of vehicles in connection with its local passenger transportation system, and to charge fees for parking there.

4. Subject to section 31, to fix tolls and fares and establish fare zones so that the commission's revenue shall be sufficient to make all transportation facilities under its control and management self-sustaining, after providing for maintenance, renewals, depreciation, debt charges and reserves as the commission thinks proper.

5. To acquire, by purchase, lease or otherwise, and to use any real and personal property for its purposes, subject to subsection (5).

6. To make requisitions on the city for the money necessary to carry out its powers and duties. However, nothing in this Act divests the council of its authority with reference to providing the money for such works. When the council provides the money, the city treasurer shall pay it out on the commission's certificate.

Section 34 (1) and (4) addresses the exclusive authority of the TTC to provide local passenger transportation services as follows:

34.(1) No person other than the commission shall operate a local passenger transportation service within the urban area, except in accordance with an agreement made under subsection (4).

(4) If a person legally operated a local public passenger transportation service wholly inside or partly inside and partly outside the urban area on January 1, 1954, the commission may enter into an agreement with the person authorizing the person to continue to operate all or part of the service for the period and on the conditions specified in the agreement.

Both the Province of Ontario, as part of the amalgamation, and the City of Toronto have approved the power and the authority vested in the Toronto Transit Commission, as has the Commission itself.

JUSTIFICATION

The Toronto Transit Commission is efficiently and effectively serving the transportation needs of Toronto. The passage of Bill C-77 as drafted could seriously undermine the economic viability of the Toronto Transit Commission, and could interfere with this efficient and equitable public transportation network.

It is recommended that the Commission strongly urge that Bill C-77 be amended so that it explicitly does not limit the ability of a province or combination of provinces to regulate extra-provincial bus undertakings when these undertakings are operating within one municipality or within a contiguous urban area, whether such contiguous urban areas are within one province or in more than one province.

CUTA has made an extensive submission to the federal government and we recommend that the Commission support this submission. It appears that the possible result outlined above is an unintended consequence arising from the current draft of Bill C-77 and the Commission should take steps to resist passage of that portion of this bill into legislation.

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May 4, 1999

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