Council takes unprecedented action to address LRT issues
The City of Ottawa issued a Notice of Default to Rideau Transit Group, the company responsible for maintaining the Confederation Line, following direction from City Council. This escalation of the City’s legal rights is in response to Rideau Transit Group’s failure to address significant issues with train and station availability, and the multiple failures that have continued across the light-rail transit system since the start of the service. There will be no interruption to rail service, and the City and municipal taxpayers are protected under the Project Agreement.
KEY POINTS
- City Council has directed City staff to issue a Notice of Default to Rideau Transit Group within 24 hours.
- This is a significant action to address the LRT issues that have deeply impacted residents.
- Rideau Transit Group is a general partnership formed by ACS RTG Partner Inc., SNC RTG Partner Inc. and Ellis Don RTG Partner Inc.
- Notice of Default is a contractual notice that advises RTG that it is in default of its obligations under its contract with the City.
- This is an escalation to address RTG’s continued failure to provide reliable service with the trains, with the stations and across the system.
- It is a strong tool that we have to ensure they resolve the issues that are impacting customers.
- This action does not interrupt service for customers.
- The City continues to use every tool available in the Project Agreement to secure the contracted level of service.
- To date, the City has taken numerous actions, including:
- Not paying the monthly service payment since October 2019.
- Bringing in British rail consulting firm JBA Corporation to increase monitoring given Rideau Transit Group’s poor performance. Rideau Transit Group has now retained JBA Corporation directly.
- Actively participating in the technical reviews with RTG.
- Placing RTG on notice regarding exercising remedial rights.
- Establishing a working group to discuss the problems with Rideau Transit Group’s system for tracking performance metrics.
- Delivering contractual notices in relation to these performance metrics, the lack of availability of the system, and the compromise to the reputation of the City and the project.
- The Notice of Default will require RTG to provide a plan and schedule by March 31, 2020 that will address how RTG intends to fix these ongoing issues and start delivering reliable service the City has contracted.
- Staff will report back to Council at its meeting on Wednesday, April 8, 2020.
A Notice of Default is a contractual notice advising Rideau Transit Group that it is in default of its obligations under the contract. Rideau Transit Group then has an opportunity to remedy those defaults. This is a strong tool in the contract available to the City.
Rideau Transit Group is a general partnership formed by ACS RTG Partner Inc., SNC RTG Partner Inc. and Ellis Don RTG Partner Inc. Under the Project Agreement, Rideau Transit Group is responsible for the design, construction and maintenance of the Confederation Line, including the vehicles and stations.
The City is also asking RTG to take a much more active role in compelling its key sub-contractors – including Alstom – to improve their performance on an urgent basis.
Since the system was launched in September 2019, there have been considerable failures on the Confederation Line. In response, the City has taken numerous actions to push Rideau Transit Group to address the issues that lead to these continued failures:
- The City has not paid the monthly service payment since October 2019.
- The City brought in British rail consulting firm JBA Corporation to increase monitoring given Rideau Transit Group’s poor performance and the need for a higher level of technical expertise. Rideau Transit Group then retained JBA Corporation directly.
- The City and the City’s consultants have been actively participating in the technical reviews with RTG in order to provide them with operational support and feedback to resolve their issues.
- The City has placed RTG on notice regarding exercising remedial rights due to persistent performance failures on the system.
- A working group has had several meetings and discussions about the problems with Rideau Transit Group’s system for tracking performance metrics.
- The City has delivered contractual notices in relation to these performance metrics, the lack of availability of the system, and the compromise to the reputation of the City and the project.
Council directed staff to prepare and deliver a Notice of Default to Rideau Transit Group that will require Rideau Transit Group to provide a plan and schedule by March 31, 2020 that will set out how Rideau Transit Group intends to fix these ongoing issues.
Council also delegated authority to the City Manager to take any other actions required under the Project Agreement to give effect to Council’s decision. Staff will report back to Council at its meeting on Wednesday, April 8.
