RTG 'misrepresented' its ability to build light rail, city says

Rideau Transit Group (RTG) misled the city about its ability to build and maintain Ottawa's $2.1-billion Confederation line, according to a formal notice of default issued by the city to the rail consortium.

The seven-page notice the first step in the complex process of potentially terminating the city's contract with RTG sets out the many perceived faults and glitches with Ottawa's light rail network, which has been riddled with delays since launching last fall.

Sent to RTG on March 10, the default notice was shared with media late Friday afternoon.

• City issues formal notice of default to RTG

City council unanimously agreed to issue the notice to RTG earlier this week.

"This is a strong escalation," said Mayor Jim Watson Monday, following a three-hour closed door meeting. "Plainly stated, we're not getting what we paid for."

RTG has said it will be considering how to respond with its principal partners: engineering firm SNC-Lavalin, construction firms EllisDon and ACS, and Alstom, the maker of the trains.

Confidence in RTG 'eroded'

The default notice, authored by rail construction program director Michael Morgan, goes into great detail about RTG's inability to both provide an adequate number of trains and carry out "effective maintenance practices" on the LRT line.

Some of the recent problems noted in Morgan's letter include:

• A shortage of trains for 25 consecutive rush hours, between Jan. 16 and Feb. 3.
• Delays on Feb. 14 caused when vehicle parts "came loose" and damaged transponders along the line.
• A Feb. 19 fire inside an LRT maintenance facility.
• The Feb. 26 collapse of a power wire that required passengers on two trains to disembark and walk along the Confederation Line tracks.
• Difficulties providing adequate heat to the train operators' cars.

The complete list in the notice is not "exhaustive," wrote Morgan, adding that the city is particularly concerned about RTG's ability to prepare for issues that could develop in the spring and summer as the temperature warms up.

The cornucopia of problems has "eroded" the city's confidence in the consortium to provide proper maintenance, said Morgan.

"It is clear to the city that RTG materially misrepresented its experience, knowledge, skill and capacity under ... the project agreement," wrote Morgan.

RTG has until March 31 to provide a timeframe to fix the LRT's issues.