PepsiCo, Inc. A Private Sector Model for

GTA Public Transit Governance

The Honourable Jim BradleyMinister of TransportationGovernment of OntarioFebruary, 2009

Robert J. (Bob) Brent, BASc, MBAPrincipal

R.J. Brent & AssociatesBob-Brent@Rogers.com

http://web.me.com/bob_brent/

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

To review GTA Public Transit Governance and recommend a Private Sector model, to maximize GTA public transit ridership and revenues—within finite capital and operating subsidies—at a critical “make or break” time for GTA transit integration (fares & operations).

Purpose

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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Recommendations

I.Metrolinx needs a revised capital & operating oversight mandate:① To successfully integrate GTA fares;② To increase business savvy of GTA transit:

• To maximize ridership & revenue, minimize subsidies;• To obsess on customer/rider, focus on competition (car);• To promote more sophisticated capital & operating planning;• To run it “like a business”: David Gunn Harvard MBA,TTC CGM;• To champion adoption of OSC 2004 Best Governance Practices;

③ To successfully rationalize GTA transit operations;④ To fully leverage smartcard data to improve service delivery;

II.PepsiCo, Inc. is a good private sector model for Metrolinx Governance

PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

TTC Marketing RGS: Cheaper, faster, better (Sept 2004) Toronto Budget Chair David Socknaki: TTC operating subsidy, R/C ratio & ridership growth relationship table; Conclusions; Top 10+ TTC Transit Myths;

Realistic TTC Ridership Growth (June 2006) TTC Vice-Chair Joe Mihevc; TTC Service Flatlining Service (1999–2006) TTC Service Planning graph (Jan 2006); Mayor David Miller’s First term: 40M TTC ride growth (Nov 2006) Marketing Transit 101: Looking back to see forward… lessons for the GTTA (March 2007):

David Gunn “I run the TTC like a business” Lessons for the GTTA; NPV analysis/capital rationing Davis Transit Funding Formula: No Panacea;

Transit City NPV Analysis (April 2007); RJB graphical career summary and summary CV.

Online: TTC CGM Deputation (September, 2007) ;Online: TTC 2007 Factsheet (PDF) ;Online: TTC Metropass Parking Deputation (August, 2008) .

Appendices/Hyperlinks

7Hyperlinks: Mac: Control Click / PC: Right-Click on Cover Page (PDF) or slide page (PPT), choose Hyperlink: Open in New Window to see source material.

PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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TTC Service “Flatlining”: 2001–2006

PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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The Davis Transit Funding Formula: No Panacea

PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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PepsiCo, Inc. A Private Sector Model for GTA Public Transit GovernanceThe Honourable Jim Bradley, Minister of Transportation, MTO

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Robert J. (Bob) Brent Bio /Click for full CV

Bob grew up in Vancouver, where BC Hydro was his TTC and electric trolley buses were his “streetcars.” The London Underground or Tube was his first subway experience at 21!

After completing his BASc in Chemical Engineering and MBA in Marketing at UBC, Bob came back to Toronto for a “couple” years and began his marketing career with General Foods in packaged goods, rising to Product Manager in the Maxwell House Coffee Division where he turned around two brands: Mellow Roast and GFIC—General Foods International (flavoured) Coffees.

Bob then joined Ralston Purina (Dog Chow, Puppy Chow, Cat Chow, Meow Mix), where as a Group Product Manager was part of the turn around team that doubled the company’s sales from $50M to $100M, going from third to first in market share and from a -$1.0M loss to a $10M profit—all in just 3 years!

Then Bob headed marketing for Pizza Hut & Taco Bell Canada, a company losing money and threatened with closure by corporate parent PepsiCo, unless results improved PDQ! Sales tripled over 3 years and the division became profitable… much to PepisCo’s surprise!

The next corporate stop was Hunt-Wesson Foods Canada working on Hunts, Orville Reddenbacher, SnackPack brands where sales increased 25% in a year before Bob deemed himself ready to take on the transit world when the TTC came knocking, looking for a turn-around specialist to head up their marketing and public affairs department under CGM David Gunn, a Harvard MBA.

Bob was TTC Chief Marketing Officer 1997–2001 charged with re-stimulating TTC Ride Growth after a 7 year ridership decline: 1989–1996. Since 2002- he has informally advised TTC Commissioners on first re-stimulating and now maintaining TTC Ridership growth.

Bob sits on the Board of the Metro Toronto Convention Centre (2004–) and was on the Toronto Parking Authority Board (2004–2007) as a City of Toronto appointee.