Finance and Economic Development Committee

BE IT RESOLVED THAT the Finance and Economic Development Committee resolve In Camera to receive and consider LIGHT RAIL TRANSIT (LRT) – LEGAL UPDATE – pursuant to the Procedure By-Law, Subsections 13 (1)(e), litigation or potential litigation affecting the City, and 13(1)(f), the receiving of advice that is subject to solicitor-client privilege, including communications necessary for that purpose – Reporting out Date: Not to be reported out.

WHEREAS the City delivered a Notice of Default on September 24, 2021, to the Rideau Transit Group (RTG) in relation to the August 8 th Derailment outside the Tunney’s Pasture Station and the September 19 th Derailment near the Tremblay Station; and WHEREAS the City acted promptly in delivering this Notice of Default in light of the seriousness of the events and the consequences under the Project Agreement (the “Agreement”); and WHEREAS in response to the Notice of Default, RTG was required to submit to the City a plan and schedule for the remediation of its breaches under the Agreement; and WHEREAS on October 3, 2021, RTG submitted its purported plan and schedule to the City to remedy its breaches while at the same time disputing the Default; and WHEREAS the City has reviewed RTG’s purported plan and schedule and continues to find both are unsatisfactory under all of the circumstances; and WHEREAS the City is not waiving any contemplation of litigation privilege, lawyer-client privilege or public interest privilege; THEREFORE BE IT RESOLVED THAT the Finance and Economic Development Committee recommend that City Council: 1. Direct the Director, Rail Construction Program, to deliver a Notice of Dispute under the Project Agreement with respect to the RTG Defaults; and 2. Direct the Director, Rail Construction Program to proceed promptly to have the Defaults confirmed through the contractual dispute resolution process in the Agreement including, as necessary, asking the Court to