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
'He's in our hearts': Family and friends still seek answers one year after Nathan Wise’s disappearance
It’s been a year since Nathan Wise went missing and his family is no closer to finding out what happened to him.
'My family doctor just fired me': Ontario patients frustrated with de-rostering
Dozens of Ontarians are expressing frustration in the province’s health-care system after their family doctors either dropped them as patients or threatened to after they sought urgent care elsewhere.
Ottawa pizzeria places among top 20 deep-dish pizzas in the world at international competition
An Ottawa pizzeria is being recognized as one of the top 20 deep-dish pizzas in the world.
Canada Post cracks down on Nunavut loophole to get free Amazon Prime shipping
Amazon's paid subscription service provides free delivery for online shopping across Canada except for remote locations, the company said in an email. While customers in Iqaluit qualify for the offer, all other communities in Nunavut are excluded.
Wildfire near Fort McMurray more than triples overnight, several evacuation alerts remain in place
The fire burning near Fort McMurray grew from 25 hectares to 5,500 hectares over the weekend.
Putin replaces Russian defence minister in rare cabinet shakeup
Russia’s President Vladimir Putin began a Cabinet shakeup on Sunday, proposing the replacement of Sergei Shoigu as defence minister as he begins his fifth term in office.
Man fatally 'slashed in the neck' in downtown Toronto, suspect outstanding
Police are searching for a male suspect after a man was “slashed in neck” on Sunday morning in downtown Toronto and died.
WATCH Dashcam video shows terrifying near-miss on two-lane northern Ontario highway
There were some scary moments for several people on a northern Ontario highway caught on video Thursday after a chain reaction following a truck fire.
Edibles, armchairs and adapters: Here are the recalls for this week
Health Canada announced various product recalls this week, including electric adapters, armchairs, cannabis edibles and vehicle components.