Regional Transit update

Jan. 10, 2005

Ajax Council, at their meeting on Jan.10, 2005 approved the transfer of the responsibility of transit from the lower tier municipalities to the Region of Durham, effective January 6, 2006.

The Region of Durham approved the transit bylaw at their meeting on Dec.15, 2004. In order to implement the transfer, a majority of
municipal councils representing a majority of Durham electors need to also approve the transit transfer bylaw.

Earlier in 2004, Ajax Council pressed for a business case analysis to 
be completed prior to any debate on the transfer. The business case
analysis was conducted by Totten, Sims, Hubicki, who presented it to  the Region on Nov. 10, 2004 and Ajax Council on Dec. 6, 2004.

The business case analysis reviewed other transit systems such as York and Grand River Transit that had experienced an amalgamation process,  as well as, the local transit systems currently operated by APTA, (Ajax, Pickering Transit Authority) Whitby Transit and Oshawa Transit including the specialized services offered by APTA and Handi Transit. A number of issues were explored including service levels, employee contracts and assets and liabilities pertaining to the local transit systems. The
final conclusion of this comprehensive analysis was that the
amalgamation of transit and transfer of responsibility of transit to 
the Region would be in the best interests of Durham residents from a  social, environmental and economic perspective. 

The analysis indicated that there would be increased costs in the
initial transition; however, over the longer term economies of scale,
better service levels resulting in increased ridership and the
heightened opportunities to attract funding from the provincial and
federal levels of government would be optimized by vesting transit
responsibility at the Regional level. The consultants provided
recommendations for the transfer as well as a list of issues that 
needed to be responded to in order to effectively manage the transfer. 

It may be of interest to note that Ajax and Pickering amalgamated their transit systems in 2001. Recently, APTA has been recognized as a leader in the industry with its increased ridership, surpassing most Canadian public transit systems. The goal of the Region's Transportation Master Plan is that by 2021, 15% of auto trips are redirected to other modes of transportation (predominantly public transit). To reach this target, transit ridership in Durham would have to increase by 450%. It is a well documented fact that in Canada the over 5000 premature deaths annually and an escalating occurrence of asthma related illnesses among our children are related to poor air quality. Investing in our public transit system improves our quality of life and health.


Responses from all municipalities are expected back to the Region by January 18, 2005. Durham Regional Transit System Update (March 4)

Municipalities Request a Business Case Analysis First

The majority of municipalities have heeded the advice and concerns expressed by Ajax Council and have endorsed motions that request a business case analysis of the costs and benefits involved in the amalgamation of Durham transit systems, prior to endorsing the shift of responsibility of transit to the Region.

This response from municipalities was received by Regional Council on March 24, 2004 and will be forwarded to the Regional Transit Implementation Committee. 

The Transfer of Transit to The Region – A Shot In The Dark 

It is irresponsible that Regional Council would approve the transfer of all responsibilities assets and liabilities related to transit systems from the lower tier municipalities to the Region.  There has not been a business case study or any type of feasibility analysis of the costs, benefits or implications of transferring this responsibility to the Region. 

 Regional Council in a recorded vote at their Council meeting February 11, 2004 approved a bylaw to transfer all of the power relating to public transportation other than highways, to the Region from all of its lower-tier municipalities, effective July 1, 2004. 

This bylaw states that all rights and obligations and all assets and liabilities including all real and personal property of the lower-tier municipalities pertaining to or used for public transportation shall be vested in the Region subject to the terms and conditions mutually agreed upon.  The interest and obligation of any agreement, purchase order or lease shall be assumed by the Region and the respective lower-tier municipality shall be relieved of all liability under such agreements.

 Ajax Mayor Parish moved a motion to delay the passage of this bylaw for sixty days until a business case analysis could be completed that would analyze the costs, benefits and ramifications of such a move.  I supported Mayor Parish’s motion. This motion was defeated on a recorded vote.

 The bylaw was then carried on a recorded vote.  Municipalities will now have the opportunity to vote on this bylaw.  Final passage of the bylaw requires a triple majority which means that a majority of municipal councils are required to endorse the motion.  The majority of Councils endorsing the motion must also collectively represent a majority of the population living in Durham for approval of the uploading of transit to the Region. 

No one knows the ramifications of this large undertaking of amalgamating the transit systems of Ajax/Pickering Transit Authority, Whitby and Oshawa Transit.  Based on the experience in York Region and Waterloo the costs of providing transit escalated dramatically after the amalgamation of their transit systems.  In York Region net operating costs rose from 7.5 million (pre amalgamation) to 22.5 million in three years.  Waterloo suffered a similar experience as they watched costs rise from 9.6 million (pre amalgamation) to 15.3 million in three years.  Therefore, it seems likely that in Durham a similar fate awaits us.  A direct tax increase will likely result without any immediate service improvements to our transit system.

 The Durham Region Transit Improvement Plan finalized in the fall of 2003 recommended a number of steps to improve transit in the Region by enhancing local, inter-municipal and inter-regional transit services.  Amalgamation of transit was viewed as a long term goal only after many of the recommendations of that plan had been implemented.  It was also recognized that a business case analysis was required to fully understand the cost, implications and benefits prior to moving towards amalgamation.

 To date Oshawa, Clarington and Pickering Councils have approved the bylaw to transfer transit to the Region. Whitby Council has requested that the Region of Durham undertake a business case analysis before considering any transfer of authority over bus transit systems.  I will be urging Ajax Council to adopt a stance similar to Whitby’s motion.  Approval of transferring transit to the Region without a business case is an irrational and irresponsible action without any knowledge of the possible consequences. 

Ajax Council will be discussing this motion at their General Government meeting on March 4^th with final discussion and adoption of their position at the Council meeting on March 8^th.