Decision No. 635-R-2006
November 17, 2006
APPLICATION, as amended, by the Corporation of the City of Ottawa carrying on business as Capital Railway, pursuant to subsection 93(1) of the Canada Transportation Act, S.C., 1996, c. 10, for a variance of Certificate of fitness No. 00002-1 to reflect a change from a leasehold interest to an ownership of the railway lines described in the certificate of fitness, as well as to include the proposed construction of a north-south light rail transit system from the University of Ottawa to the Barrhaven Town Centre.
File No. R 8005/C6
On January 13, 2006, the Corporation of the City of Ottawa carrying on business as Capital Railway (hereinafter the City of Ottawa) applied to the Canadian Transportation Agency (hereinafter the Agency) for the variance set out in the title.
Certificate of fitness No. 00002-1 issued to the City of Ottawa on April 30, 2001 permits the construction, improvements and operation of a railway line for the purposes of operating a proposed light rail commuter service, also known as the O-Train, in the provinces of Ontario and Quebec through a lease agreement with the Canadian Pacific Railway Company (hereinafter CP), serving five stations from Greenboro Station in the south to Bayview Station in the north. The O-Train vehicles are diesel-powered and run on a single track on CP's Ellwood Subdivision, between mileages 0.00 and 4.99; on the Prescott Subdivision, between mileages 4.90 and 4.99; and on the Walkley Line, between the junction with the Ellwood Subdivision and CP's locomotive shop in the Walkley Yard.
Subsection 92(1) of the Canada Transportation Act (hereinafter the CTA) states that the Agency shall issue a certificate of fitness for the proposed construction or operation of a railway if the Agency is satisfied that there is adequate liability insurance coverage for the proposed construction or operation.
Subsection 93(1) of the CTA provides that the Agency may, on application, vary a certificate of fitness.
In its application, the City of Ottawa states that as of May 6, 2005, it took ownership of the railway lines described in its current certificate of fitness from CP. Furthermore, it is planning to replace the existing light rail transit system, the O-Train, with an electric light rail transit system and to expand the service area of the light rail transit system from the existing Bayview Station to Mackenzie King Bridge and from the existing Greenboro Station to Woodroffe Avenue, a total of approximately 29 kilometres.
In a letter dated February 16, 2006, the City of Ottawa was requested to provide additional information or clarification to enable the Agency to properly assess the application.
In its reply dated April 18, 2006, the City of Ottawa states that it was just entering into negotiations with the consortium led by Siemens Canada Limited (hereinafter Siemens) and PCL Constructors Canada Inc. (hereinafter PCL Constructors), which had been chosen through an extensive tendering process to design, build and maintain the north-south light rail transit system. The City of Ottawa confirms that it will be transferring the responsibility for insuring the third party liability risks related to the proposed construction to the consortium. Once the City of Ottawa has successfully reached an agreement with the consortium, the Agency will be provided with evidence of the required insurance information. An updated certificate of insurance covering the renewal term from April 12, 2006 to April 12, 2007 for the current Capital Railway/O-Train operation was previously filed. The City of Ottawa advises that the current Capital Railway operation will not be impacted by the new construction project until after that period, at which time Capital Railway will terminate and that section of the railway line will become part of the construction project. As such, it will be insured under the project insurance coverage.
In a letter dated July 13, 2006, the City of Ottawa confirmed the approval of the north-south light rail transit system project by the Ottawa City Council and requested that its application be amended to include the extensions of construction in the north from Mackenzie King Bridge to the University of Ottawa and in the south from Woodroffe Avenue to the Barrhaven Town Centre.
On August 1, 2006, Aon Reed Stenhouse Inc. (hereinafter Aon Reed), insurance brokers, acting on behalf of Siemens and PCL Constructors, filed a certificate of insurance with the Agency. Aon Reed submits, however, that the details of the insurance company and policy number have not yet been finalized and, therefore, the insurance coverage will only come into effect upon the contract execution which is scheduled for September 2006. At that time, a revised certificate of insurance will be filed.
Further to this undertaking, a revised certificate of insurance was filed with the Agency on September 22, 2006 and, accordingly, as of that date the application was complete.
With respect to the adequacy of the insurance coverage, the Agency has reviewed the information filed and is satisfied that the City of Ottawa, through Siemens and PCL Constructors, has adequate third party liability insurance coverage, including self-insurance, for the proposed construction of the north-south light rail transit system from the University of Ottawa to the Barrhaven Town Centre.
The Agency's review of the City of Ottawa's financial capability to self-insure for the amount of self-insurance was based on the audited financial information submitted by Siemens and PCL Constructors and the contract between the parties whereby responsibility for self-insurance was transferred.
The Agency has considered this application and in light of the change in ownership of the railway lines described in the certificate of fitness, as well as the proposed construction of the north-south light rail transit system, the Agency will vary Certificate of fitness No. 00002-1.
Accordingly, the Agency, pursuant to subsection 93(1) of the CTA, hereby varies Certificate of fitness No. 00002-1 to reflect the change from a leasehold interest in to an ownership of the railway lines described in the certificate of fitness, as well as to include the proposed construction of a north-south light rail transit system from the University of Ottawa to the Barrhaven Town Centre.
Certificate of fitness No. 00002-2 which is issued pursuant to this Decision supersedes Certificate of fitness No. 00002-1 dated April 30, 2001 issued to the Corporation of the City of Ottawa carrying on business as Capital Railway.
Members
- Gilles Dufault
- Baljinder Gill
- Guy Delisle
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