City of Ottawa settlement with Rideau Transit Group resets relationship, sides say
The city of Ottawa and its LRT contractor have reached a settlement the two sides say will reset their relationship after years of legal fighting.
The city and Rideau Transit Group issued a joint statement on Friday announcing the out-of-court agreement, saying it "resolves several issues between them and resets their relationship to focus on the delivery of safe and reliable transit service to the people of Ottawa."
The sides had been suing each other—the city launched a $131 million lawsuit in 2021 over the Confederation Line's problems and delays, and RTG countersued for $225 million.
The city was withholding nearly $70 million in payments over the ongoing dispute. Both parties have refused to say publicly how much money is involved in the settlement.
Council voted Wednesday night to direct the city's transit services chief Renee Amilcar to "negotiate, finalize and execute" the agreement, after hours of closed-door discussions.
RTG acknowledges default
The city issued a notice of default in Oct. 2021 after derailments on Aug. 8 and Sept. 19, 2021, the latter of which shut the line down for nearly two months.
The agreement resolves that "through RTG’s acknowledgement of the Default and the City’s confirmation of the immediate cure based on RTG’s rigorous plan to address the issues that led to the derailments and come to a sustainable resolution of the axle bearing assembly issue," the statement said.
The agreement says RTG is committed to resolving the issues before the Stage 2 east extension to Orleans opens. That's scheduled for 2025.
"In addition, RTG has and will continue to implement various interim mitigation measures to ensure the reliability of O-Train Line 1."
The Oct. 2021 notice of default was the second one the city issued against RTG. The first was in March 2020, which the statement announcing the settlement does not mention.
"The City acknowledges the work RTG has done and will continue to do to ensure the people of Ottawa receive safe and reliable service on O-Train Line 1 and will continue to monitor RTG’s progress," the statement said.
The agreement also includes a promise by RTG/RTM to fill positions and hire more people to help fix issues, as CTV News reported Wednesday night.
The two sides have also settled several disputes concerning RTG's performance and the city's administration of the contract during the maintenance phase of the project.
Commission recommended cooperation
The agreement comes after the public inquiry into Ottawa's light rail transit project released its final report.
Commissioner Justice William Hourigan noted the relationship between the city and RTG was "adversarial" at critical stages of construction and maintenance, and "this fact contributed to problems with the OLRT1 project."
The city and RTG say they will move forward with a goal of "improved partnership and collaboration" as recommended in the commission report.
"The settlement demonstrates both parties’ acknowledgement of the importance of cooperation, which the Commission Report urged," the statement said, adding that the agreement reflects a number of the commission's recommendations.
CTVNews.ca Top Stories
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
WHO likely to issue wider alert on contaminated cough syrup
The World Health Organization is likely to issue a wider warning about contaminated Johnson and Johnson-made children's cough syrup found in Nigeria last week, it said in an email.
WATCH Video shows dramatic police takedown of carjacking suspects chased through parking lot north of Toronto
Police have released video footage of a dramatic takedown of a group of teens wanted in connection with an attempted carjacking in Markham earlier this month.
Canada, G7 urge 'all parties' to de-escalate in growing Mideast conflict
Canada called for 'all parties' to de-escalate rising tensions in the Mideast following an apparent Israeli drone attack against Iran overnight.
'It was all my savings': Ontario woman loses $15K to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
Families to receive Canada Child Benefit payment on Friday
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.
After COVID, WHO defines disease spread 'through air'
The World Health Organization and around 500 experts have agreed for the first time on what it means for a disease to spread through the air, in a bid to avoid the confusion early in the COVID-19 pandemic that some scientists have said cost lives.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.