City launched LRT prematurely for political reasons, says RTG executive

The City of Ottawa launched the Confederation Line prematurely and without consulting the contractors because it was under political pressure, according to a massive document filed in Ontario Superior Court this week by the group behind the light rail transit system.

The completion of the $2.1-billion Confederation Line was more than a year late and because of that, "there was intense political pressure to bring the system into service when it approached completion," according to an affidavit from Nicolas Truchon, the CEO for Rideau Transit Group (RTG), which designed, built and now maintains the LRT.

The affidavit cites Matthew Slade,who had a senior role for the constructors of the rail line, saying the city pushed ahead with opening the LRT system without following the advice of the builders.

Although RTGformally handed over the system to the city at the end of August2019, city officialsincluding now-retired transit boss John Manconi had always said it would take a few weeks before the LRT would be open to the public.

• Analysis: Did the city move the goalposts for accepting LRT?
• LRT line to open Sept. 14

"The city decided unilaterally to offer full service to the public on Sept.14, 2019, only two weeks after [the handover]was achieved," according to Truchon's affidavit. "The city did not consult either RTG or the construction contractor before taking this decision."

Truchon also contends RTGand then-consultants STV "recommended a soft opening for the system."

"In Mr. Slade's view, the city disregarded this recommendation due to the political push to get the system operational," the affidavit read.

The RTG executive also said asoft launch would have allowed for "a normal part of the natural bedding-in period for a project of this nature" when the typical issues arose in the early days of the LRT system. Instead, he says there was more public criticism due to the full launch.

The issues with the LRT were also "aggravated by the city's decision to discontinue concurrent bus service during the start-up period leaving no alternative to its ridership," Truchon stated.

"The public and elected officials have seemed unwilling to accept the normal growing pains associated with bringing a system of this nature online."

Mayor says launch was RTG's call

Mayor Jim Watson told reporters Wednesday he "fundamentally" disagreed with RTG's interpretation.

"They actually presented me [with]a giant key to say, here's the start of the LRT," Watson said."It wastheir call and obviously we consulted with them."

Truchon's claims the city "unilaterally" decided to fully launch the Confederation Line are part of a motion filed in court on Tuesday by RTG. The group is trying to halt the city's efforts to have the court declareRTG in default of its contract with the city.

• City takes next step in breaking 30-year contract with RTG

In September 2021thecity issued a second notice of defaultto RTG a consortium of SNC-Lavalin, ACS Infrastructure and Ellis Don after two trains derailed in as many months. In mid-Decemberthe city asked the court to confirm RTG has not lived up to its obligations in the project agreement.

If the court deems RTGis in default, the city could end the30-year maintenance contractworth more than $1 billion. Terminating the contract would hurt RTG already out $42 million in payments from the city and according to the court documents, the city docked $13 million from payments to RTG between September and December of 2021 alonerelated to the two derailments.

• Ottawa LRT derailment in August happened after hours of problems, TSB says
• TSB finds 'incomplete maintenance' caused Ottawa LRTSeptember derailment

RTG argues the city didn't follow the dispute resolution process spelled out inthe project agreement and the city's application should be stayed.

City went tocourt to distract from inquiry, RTG claims

According to the court documents, the dispute resolution mechanism is spelled out distinctly in the contract, and calls for progressively serious measures if the city and the RTG can't work out their differences.

RTG claims the city improperly jumped over the adjudication phase of the process, which is the third step, and its motion states "the parties must complete adjudication prior to a dispute being referred to arbitration or to litigation in this court."

Instead, after RTG executives were unable to resolve their dispute at a Nov. 9 meeting with Ottawarail director Michael Morgan and OC Transpo GM Rene Amilcar, the city's next move was to file an application in court on Dec. 15.

In his affidavit, Truchon states the city's move to go straight to court was also "politically motivated," suggesting thecity was looking to distract the public from the fact the province had launched a public inquiry into the Confederation Line.

• Province to launch public inquiry into Ottawa LRT network
• 'Things are not going well': City knew of reliability issues before accepting LRT system

"Since the idea of a provincial inquiry first made news, the city has launched this application by surprise, skipping the adjudication step," according to the affidavit.

"The city has asserted that its application is urgent and that it should be heard on an expedited basis."

In a memo sent to council early Wednesday evening, Morgan said the city disagrees with RTG's claims and will respond with an affadavit of its own to be filed in court March 14.

It is not clear when RTG's motion to stay the city's application will be heard in court. The province's inquiry into the LRT is underway, and public hearings are expected sometime in the spring.