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
New Norad commander calls Canada's defence policy update 'very encouraging'
American troops will be spending more time training in the Far North, the new commander of Norad says, a strategy that fits 'hand-in-glove' with Canada's renewed focus on Arctic defence.
opinion The special relationship between King Charles and the Princess of Wales
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
$70M Lotto Max winners kept prize a secret from family for 2 months
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Are Canadians getting sick from expired food?
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
Documents reveal Ottawa's efforts to get Loblaw, Walmart on board with grocery code
It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, jeopardizing the project's success.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Improve balance and build core strength with this exercise
When it comes to cardiovascular fitness, you may tend to focus on activities that move you forward, such as walking, running and cycling.
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.