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
Grandparents killed in wrong-way crash on Hwy. 401 identified
A 60-year-old man and a 55-year-old woman killed in a wrong-way crash on Highway 401 earlier this week have been identified by the Consulate General of India in Toronto.
Police arrest 3 Indian nationals in killing of B.C. Sikh activist Hardeep Singh Nijjar
Three people have been arrested and charged in the killing of B.C. Sikh activist Hardeep Singh Nijjar – as authorities continue investigating potential connections to the Indian government.
Suter scores late goal, clinches series for Canucks
Pius Suter scored with 1:39 left and the Vancouver Canucks advanced to the second round of the NHL playoffs with a 1-0 victory over the Nashville Predators on Friday night in Game 6.
TD worst-case scenario more likely after drug money laundering allegations: analyst
TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
Quebec man who threatened Trudeau, Legault online sentenced to 20 months in jail
A Quebec man who pleaded guilty to threatening Prime Minister Justin Trudeau and Premier François Legault has been sentenced to 20 months in jail.
Human remains found in rural Sask. possibly a decade old, RCMP say
RCMP say human remains found in a rural area in central Saskatchewan may have been there for a decade or more.
Britney Spears 'home and safe' after paramedics responded to an incident at the Chateau Marmont, source tells CNN
A source close to singer Britney Spears tells CNN that the pop star is 'home and safe' after she had a 'major fight' with her boyfriend on Wednesday night at the Chateau Marmont in West Hollywood.
Canadian doctor concerned new weight-loss drug Wegovy may be used inappropriately
As Wegovy becomes available to Canadians starting Monday, a medical expert is cautioning patients wanting to use the drug to lose weight that no medication is a ''magic bullet,' and the new medication is meant particularly for people who meet certain criteria related to obesity and weight.
Drew Carey is never quitting 'The Price Is Right'
Drew Carey took over as host of 'The Price Is Right' and hopes he’s there for life. 'I'm not going anywhere,' he told 'Entertainment Tonight' of the job he took over from longtime host Bob Barker in 2007.