OC Transpo withholds $15 million in payments due to LRT disruptions in 2023, report shows
OC Transpo withheld $15.1 million in payments to Rideau Transit Maintenance in 2023 due to maintenance issues and extended shutdowns on the Confederation Line.
A new report for the Finance and Corporate Services Committee on the city of Ottawa's 2023 budget spending shows the multi-million dollar "performance deductions" OC Transpo claimed when the light-rail transit system was out of service last year.
The O-Train line was shut down for 28 days last July and August after an issue was discovered with one bearing on an LRT vehicle during routine inspection. When service resumed, RTM was running single-car service along the line between Blair and Tunney's Pasture stations.
- Sign up now for daily CTV News Ottawa newsletters
- The information you need to know, sent directly to you: Download the CTV News App
LRT service was also disrupted twice in the winter and spring of 2023 due to freezing rain.
Staff say O-Train Line 1 performance reductions were $15.1 million in 2023. The report does not provide a breakdown on the performance deductions.
The $15.1 million in savings during LRT shutdowns was offset by $3.1 million in costs for R1 and R2 replacement bus service, according to the city.
Under the project agreement between the city and Rideau Transit Group, the city can withhold payments for service not provided along the Confederation Line.
"Normally, with the (project agreement) that we have we don't pay RTG when they don't deliver the service," Transit Services general manager Renee Amilcar told reporters during a media briefing on July 24, when the LRT was out of service.
"I want to assure the customers that we don't pay RTG when RTG doesn't deliver the service."
OC Transpo pays Rideau Transit Group/Rideau Transit Maintenance approximately $5 million a month to operate the Confederation Line.
OC Transpo reported a $29 million operating budget deficit in 2023, mainly due to a drop in ridership.
The report shows the operating shortfall was offset by $27.79 million in "normal operational savings."
"The normal operation surplus was mainly attributable to reduced compensation expenditures from vacancies, lower O-Train Line 1 maintenance costs mainly due to the performance deductions per the project agreement with Rideau Transit Group, lower fuel costs and the delay of the opening of O-Train Lines 2 and 4 which were partially offset by higher Para Transpo service and fleet maintenance costs," the report says.
CTVNews.ca Top Stories
Here's how much more Canadian landlords are asking for now, according to a just-released report
A new report says the average asking rent for a home in Canada in April was up 9.3 per cent compared with a year ago, while a slight month-over-month increase was also recorded for the first time since January.
What is basic income, and how would it impact me?
Parliamentarians are considering a pair of bills aiming to lift people out of poverty through a basic income program, but some fear these types of systems could result in more taxes for Canadians who are already financially struggling.
Canada abstains from Palestinian UN membership vote but supports two-state solution
Canada was one of 25 countries that abstained from a United Nations vote on Palestinian membership that passed with overwhelming support on Friday.
More than half the Canadians once detained in Syrian camps for suspected ISIS family members have returned home
A total of 29 Canadians have been freed from detention camps in northeast Syria and brought back to Canada since human rights advocates began lobbying for their release years ago.
'I may have some nightmares:' Man survives being bitten by 2 sharks in Bahamas
A man who was bitten by two sharks in the Bahamas said Thursday he's 'thankful that I'm here' while sharing his story of survival.
Rare severe solar storm Friday could bring spectacular aurora light show across Canada
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Out-of-control wildfire burning near Fort McMurray
As of 9 a.m. on Friday, the wildfire burning 28 kilometres southwest of the northeastern Alberta city was 25 hectares in size.
Mexico's president accuses press and volunteer searchers for missing people of 'necrophilia'
The administration of Mexico's president has accused the press and volunteer searchers who look for the bodies of missing people of 'necrophilia,' comments that drew criticism this week.
Magnitude 4.2 earthquake reported off Vancouver Island's west coast
A 4.2-magnitude earthquake was recorded west of Vancouver Island early Friday morning.