Re: Re: O-Train News: O-Train being killed by feds?
The O-Train is being killed by federal manipulation. This tactic should be of great concern for Toronto's waterfront project.
I don't like being lied to,' Baird says
Mayor misled government, Ottawans on rail deadline: Treasury Board boss
Jake Rupert, The Ottawa Citizen
Published: Thursday, October 12, 2006
Ottawa Mayor Bob Chiarelli and Treasury Board President John Baird traded accusations yesterday over the latter's decision to force a new city council vote on the already approved north-south light-rail project.
The move throws into doubt on the future of the project, raises accusations of federal meddling in municipal affairs and the mayoral campaign, concerns about potential cost increases and questions about what would happen if the new council kills the project.
It also boosts the importance of light rail in this fall's campaign.
In an interview, Mr. Baird accused Mr. Chiarelli and senior city staff of lying when they said a contract with a group of companies chosen to build the $880-million project had to be completed by Sunday.
Mr. Baird said after reviewing the contact, it is clear "the fact is" the deadline is mid-December.
"We were told all along the deadline was mid-October, not mid-December," he said. "I was misled, people were misled. The federal government was misled. We were told it had to be signed immediately, and that's not true.
"I don't like being lied to."
Yesterday, Mr. Chiarelli and city staff stuck by the mid-October deadline, saying the quoted price is only good until then and the extension clause was never meant to be used as a political football.
He said for political reasons, Mr. Baird wanted to halt the project during the municipal election campaign, and hung his hat on a faulty interpretation of a clause in the contract.
"There has been no misleading, no coverup," the mayor said. "This type of interference throws a monkey wrench into the timeline agreed upon. He found a hook, for political reasons, to argue that the deadline was beyond the election."
The city is receiving $200 million each from the federal and provincial governments. The rest of the money for the Barrhaven-to-University of Ottawa line was to be financed by the city.
Council OK'd the project in July. Shortly after, the provincial government confirmed its contribution.
In a decision announced earlier this week, Mr. Baird said the money would be handed over because the project had passed technical reviews by several federal ministries.
But, he said, the money would only be granted if the new city council, to be elected on Nov. 13, also approves the project.
Mr. Chiarelli is in a tough campaign against former councillor Alex Munter and technology millionaire Larry O'Brien, both of whom are against parts of the project.
Mr. O'Brien has several people working on his campaign who have worked for Mr. Baird before.
Mr. Baird "is doing his job, which is to protect the taxpayers of the city and the taxpayers of the country, it was a tough decision," Mr. O'Brien said. "There have been many, many mistakes made on this project, and it's time to take a sober second look. It's never too late to do the right thing."
Mr. O'Brien said he didn't have enough information to say whether he would vote for or against it if elected. He says he would, as mayor, order a review to make sure the city is getting value for money, or see if there is a better way to build the line.
Also yesterday, Mr. Munter accused the mayor of lying in July when staff and the mayor said if the project was delayed until after the election, the city would be liable for rising costs.
He said since Mr. Baird's review shows the completion deadline can be extended to Dec. 15 without cost increases, it shows the mayor pushed for completion of the contract to boost his campaign.
"He misled the public and city council in an attempt to ram this through before an election."
If elected mayor, the former councillor would scrap the downtown portion, which is to run on city streets, and the link to Barrhaven. Mr. Munter's line would run from LeBreton Flats to the airport, and he would use leftover money on an east-west line.
Mr. Chiarelli, a Liberal who has clashed with Mr. Baird before, accused the Treasury Board president of meddling in municipal politics, and possibly breaking the law.
"There are lawyers who think that what he's done is an illegal act," Mr. Chiarelli said. "The dynamics are very, very strange. What other reason (than meddling in municipal politics) could there be for the timing of this?"
Mr. Baird called that idea stupid.
"We are not going to sign off on a potential billion-dollar project 33 days before a municipal election."
Mr. Baird said the contract, which city councillors have never seen and has been kept from the public, has several troubling areas where cost overruns could occur.
He said the city, without putting a shovel in the ground, has already asked the federal and provincial governments for $24 million more to extend the line to Barrhaven.
"It has never been fully costed. There are things in there that the city will be responsible for and they have not been worked out.
"The new city council has a right to decide this issue because they are the ones who will have to deal with it."
If the new council killed the project, he said, the $200 million from the federal government would be available for any other transit infrastructure project the city came up with, subject to federal ministry reviews.
"The money is there, 100 per cent, for the city," he said.
At a press conference yesterday, light-rail project leader Rejean Chartrand and city manager Kent Kirkpatrick and Mr. Chiarelli challenged Mr. Baird's allegations about the project.
They said the price quoted by the companies is only good until Oct. 15 because the work needs to be started right away, the project is fully costed out, the ability to pay is secure, and contingency funds have been set aside.
Mr. Kirkpatrick said the clauses that extend the deadline by two months were not designed to accommodate an election, but rather to cross the T's and dot the I's. He also said the delay could result in extra costs, and the issue of who would pay will need to be examined.
Mr. Baird's move also angered several city councillors who voted for the project, and a few who voted against it.
"This should be a wakeup call for every municipality in this country, that this federal government doesn't believe in local democracies, and they are willing to thwart the will of a democratically elected governments," said Councillor Diane Deans.
"Federal government manipulation like this is un-Canadian."
City council passed a resolution calling on the mayor to phone Prime Minister Stephen Harper and ask him to rein in Mr. Baird. They also passed resolutions guaranteeing the companies money for work done between now and the December vote, and ordered city staff to continue with work needed to be ready for an April 2007 construction start.
Some councillors were angry because in July, when they tried to get council to delay the decision, staff said it would add between $65 million and $80 million to the cost of the project.
"I, for one, feel misled," said Councillor Alex Cullen, who tried to get council to delay the decision in July. "We were always told there would be penalties and costs" if the project was delayed.
Councillors also said light rail has just become a major election issue.
Capital Councillor Clive Doucet, an strong supporter of the project, said he will make it his No. 1 issue.
"If people don't want this project, they don't want me, and they know what to do on Nov. 13," he said.
© The Ottawa Citizen 2006