Ottawa city council has unanimously agreed to issue Rideau Transit Group (RTG) a formal notice of default over ongoing problems with the Confederation Line, an unprecedented move for the city. RTG will then have until March 31 to provide a "credible and realistic" time frame to fix the issues, although Watson noted "time is running out" for the consortium. The notice of default is the first step in a complex process for the city to end the contract "for cause," explained city manager Steve Kanellakos, who added that the city has never issued this sort of notice for such a significant contract. Watson said he wants to see issues resolved by the end of the summer, but certainly before the year is out. $2B maintenance contractBut the notice doesn't mean the city will necessarily end its relationship with RTG, whose maintenance arm, Rideau Transit Maintenance (RTM), has a 30-year contract worth $2 billion for both stages of the Confederation Line.

Source: CBC News March 09, 2020 21:07 UTC