One of the big stories here in Ottawa nowadays is about the city's proposed light rail project. Ottawa city council led by Mayor Bob Chiarelli (right)— who everyone tells me is a Liberal — approved the $200-million deal and signed a contract with a consortium led by Siemens. Then Treasury Board President John Baird — who everyone tells me is a Conservative — stepped in. Baird is an Ottawa area MP and wanted to “review” the deal as the federal government is helping out with the financing. After Baird's review, the federal government let everyone know that it was withholding its absolute final approval until after the municipal elections in November. The light rail project is, indeed, a municipal election issue and there is a decent chance, if the polls are to be believed, that Chiarelli may not win again.
Several of Baird's federal political opponents are accusing him of interfering with a legitimate municipal political process to settle his own political hash while others believe he may have violated some confidentiality agreements.
In any event, Ottawa City Council asked the PM to step in and here's the documents filed by Chiarelli and his council:
City Council and Standing Committee
City Council and Standing Committee Motion
Moved by: Councillor D. Deans
Seconded by: Councillor J. Harder
WHEREAS Treasury Board President John Baird has acted unilaterally to override a decision by a democratically elected Council; AND
WHEREAS the decision of the Treasury Board President will result in cost overruns and possible legal action by the consortium;
AND WHEREAS the President of the Treasury Board took an unprecedented step in demanding and reviewing a commercial contract that the Federal Government is not a party to;
AND WHEREAS the Treasury Board President is misinterpreting a clause in the contract that is intended for financial closing and was not intended for use by a third party, namely the Federal Government;
AND WHEREAS the Federal Infrastructure Minister Lawrence Cannon has approved the submission to the Treasury Board;
THEREFORE BE IT RESOLVED that Mayor Chiarelli seek assurance from the Prime Minister of Canada that the Government of Canada remains unconditionally committed to the providing $200 million funding for the N-S LRT project in keeping with the spirit and intent of the MOU dated April 21, 2005 and in keeping with the Council decision July 12, 2006.
October 16, 2006
The Right Honourable Stephen Harper, PC, MP
Prime Minister of Canada…
Dear Prime Minister Harper:
At the request of Ottawa City Council, I am writing to you as Mayor of the nation’s capital regarding a critical issue affecting the future of our public transit system in Ottawa.
Ottawa City Council has approved over fifty votes leading to the award of a light rail contract to the consortium of Siemens PCL Dufferin. The Downtown to Barrhaven LRT project was ratified by Ottawa City Council on July 12, 2006 by a 14-7 vote. Pursuant to that decision, a legally binding contract was entered into on September 15, 2006, between the private sector consortium and the City of Ottawa.
Officials in Transport Canada and Infrastructure Canada have been kept fully aware of the project and confirmed to the city prior to the application to Treasury Board that their review was complete, that no further information or documentation was necessary, and that the project would be recommended for approval by Treasury Board as per normal process.
Additionally enclosed is a copy of a letter by the Secretary of Treasury Board Wayne G. Wouters dated October 10, 2006 confirming Treasury Board approval of $200 million in federal funding. This letter also confirms that the Minister of Transport has authority to enter into a contribution agreement with the City of Ottawa, “once he has received notice after the municipal election that the new council supports the project”.
This condition is contrary to federal process and therefore raises serious questions of accountability.
It is with regret that I feel compelled to write to you under such unfortunate circumstances.
Your message to the Annual Meeting of the Federation of Canadian Municipalities in June 2006 was exemplary, focussing on a tone of respect for other orders of government. You described your speech there as “commitments to communities”. In the speech you said “ … for decades – and especially in recent years – Ottawa has stuck its nose into provincial and local matters”, and promised to change that orientation.
In addition I was very pleased by the remarks of the Hon. Lawrence Cannon, Minister of Transport, Infrastructure and Communities, at the same conference that “if we are to accomplish this (solve the problems of our cities and communities) we must build a strong and constructive partnership, where every jurisdiction is recognized and respected”. The actions of the President of the Treasury Board do not seem to reflect this respect for mature local governments.
In conclusion, I would ask you to consider all the circumstances on the position taken by our Council in order to permit the well-established and normal process concerning federal-municipal contribution agreements to be followed in this case. A copy of the resolution passed by Ottawa City Council on October 11 is enclosed.
Sincerely,
Bob Chiarelli
Mayor of Ottawa
Technorati Tags: Baird, Cabinet, Conservatives