Stage 1 LRT budget did not account for hundreds of millions in inflationary costs, inquiry told
The true cost of Stage 1 of Ottawa’s light rail transit line was in the spotlight Tuesday on the second day of public hearings in the inquiry into the problem-plagued system.
Former city treasurer Marian Simulik testified in front of the public inquiry commission, taking questions from commission lawyers on the LRT budget and the procurement process.
Simulik testified that the $2.1 billion dollar budget for Stage 1 did not take into account more than $400 million dollars in inflation as well as $177 million dollars in other costs, such as construction and transportation. Simulik said the city would be responsible for absorbing those extra costs.
Co-counsel for the commission, Kate McGrann, asked Simulik for examples of how the city would try to save and absorb the extra costs. The commission learned the city did “value engineering.” The tunnel underneath downtown was not as deep, and the uOttawa station was supposed to be underground, but was switched to aboveground in order to save on costs.
A focus of testimony also centred on the procurement and bidding processes. Simulik told the commission that the city used an “affordability cap,” meaning the winning bid would need to be at or under the $2.1 billion dollar budget. If one LRT bid came in under the affordability cap threshold, others that were above that threshold would be eliminated from the bidding process.
McGrann asking Simulik, “At any point before contract close, were there discussions about whether the budget was insufficient for what the city of Ottawa was trying to accomplish with the LRT?” Simulik responding, “I don’t remember any discussion of it being insufficient.”
Simulik said, “We basically trusted the private sector to act reasonably and produce a document or a bid that reflected what they thought the cost was going to be.”
McGrann later asked Simulik if there were concerns and “were there discussions about whether the budget or the cap introduced a risk or increased a risk that the private sector might overpromise in order to get under the cap or meet the budget?” Simulik responded, “No.”
Simulik was also asked how the city saw its relations with Rideau Transit Group. Simulik says it was considered a true partnership and a 30-year relationship. She said both parties wanted to deliver a reliable system.
The public hearings continue Wednesday with more testimony from City of Ottawa officials and contractors.
Witness Schedule (subject to change)
DAY 3 – June 15
- John Traianopoulos (Infrastructure Ontario) – Morning
- Nancy Schepers (City of Ottawa) – Afternoon
DAY 4 – June 16
- Yves Declercq (Alstom Transport Canada Inc.) – Morning
- Manuel Rivaya (OLRT Constructors) – Afternoon
DAY 5 – June 17
- Antonio Estrada (Rideau Transit Group) – Morning
- Rupert Holloway (OLRT Constructors) – Afternoon
DAY 6 – June 20
- Remo Bucci (Deloitte) – Morning
- Michael Burns (Thales Canada Inc.) – Afternoon
DAY 7 – June 21
- Lowell Goudge (Alstom Transport Canada Inc.) – Morning
- Jacques Bergeron (OLRT Constructors) – Afternoon
DAY 8 – June 22
- Bertrand Bouteloup (Alstom Transport Canada Inc.) – Morning
- Parsons/Delcan Panel – Thomas Fodor, Mike Palmer, Jonathan Hulse – Afternoon
DAY 9 – June 23
- Richard Holder (City of Ottawa) – Morning
- Monica Sechiari (Altus Group/IC) – Afternoon
DAY 10 – June 24
- Matthew Slade (OLRT Constructors/Rideau Transit Maintenance) – Morning
- Yang Liu (Alstom Transport Canada Inc.) – Afternoon
DAY 11 – June 27
- Michael Morgan (City of Ottawa) – Morning
- Brian Guest (Boxfish) – Afternoon
DAY 12 – June 28
- Thomas Prendergast (STV Inc.) – Morning
- John Manconi (City of Ottawa) – Afternoon
DAY 13 – June 29
- Peter Lauch (Rideau Transit Group) – Morning
- City of Ottawa Panel – Catherine McKenney, Allan Hubley, Sarah Wright-Gilbert, Diane Deans – Afternoon
DAY 14 – June 30
- Derek Wynne (SEMP) and Sergio Mammoliti (TUV Rheinland/ISA) – Morning
- Jim Watson (City of Ottawa) – Afternoon
DAY 15 – July 4
- Steve Kanellakos (City of Ottawa) – Morning
DAY 16 – July 5
- Larry Gaul (STV Inc.) – Morning
- Troy Charter (City of Ottawa) – Afternoon
DAY 17 – July 6
- Richard France (Alstom Transport Canada Inc.) – Morning
- Brandon Richards (City of Ottawa) – Afternoon
DAY 18 – July 7
- Mario Guerra (Rideau Transit Management) – Morning
- Nicolas Truchon (Rideau Transit Group) – Afternoon
CTVNews.ca Top Stories
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Pilot reported fire onboard plane carrying fuel, attempted to return to Fairbanks just before crash
One of the two pilots aboard an airplane carrying fuel reported there was a fire on the airplane shortly before it crashed and burned outside Fairbanks, killing both people on board, a federal aviation official said Wednesday.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
7 surveillance videos linked to extortions of South Asian home builders in Edmonton released
The Edmonton Police Service has released a number of surveillance videos related to a series of extortion cases in the city now dubbed 'Project Gaslight.'
Ukraine uses long-range missiles secretly provided by U.S. to hit Russian-held areas, officials say
Ukraine for the first time has begun using long-range ballistic missiles provided secretly by the United States, bombing a Russian military airfield in Crimea last week and Russian forces in another occupied area overnight, American officials said Wednesday.