Clarification on LRT Revenue Service Availability and associated Liquidated Damages
The city today shared with media the following memo on the Revenue Service Availability date.
November 2, 2018
The purpose of this memorandum is to provide clarification on the liquidated damages associated with the Required Revenue Service Availability (RSA) Date of the Confederation Line light rail transit project.
Rideau Transit Group (RTG) advised that it would achieve RSA by November 2, 2018. RTG missed the May 24, 2018 date and has now missed its commitment to achieve RSA by November 2, 2018.
As you may recall, at the September 10, 2018 meeting of the Finance and Economic Development Committee (FEDCO), staff outlined that the City would be in a position to deduct the $1M in liquidated damages from the next payment to RTG. The City intends to levy Liquidated Damages in the amount of $1M on the next payment to RTG, which will be when it achieves Substantial Completion.
A further update on the Confederation Line will be provided at the FEDCO meeting of November 14, 2018.
Source : City of Ottawa