Metrolinx squares up $10 million it owed Ottawa for Presto Card delays
By Michael Woods, OTTAWA CITIZEN February 19, 2014
OTTAWA — The City of Ottawa received more than $10 million in settlement money last year from Metrolinx for delays associated with implementing the Presto Card.
The city’s transit commission was told Wednesday morning that final full settlement funds were received from Metrolinx, the provincial agency which provides the Presto cards for OC Transpo, in December.
The Presto card was initially supposed to launch in July 2012, but was delayed for months due to technical problems.
The city’s transit commission had requested that Metrolinx reimburse the city for the cost of the delay.
Coun. Diane Deans, chair of the transit commission, told Wednesday’s meeting that the city has been reimbursed for the full net incremental costs of the delay.
About $5.64 million of the payment was to cover “implementation delay costs.” Deans said. That includes incremental costs such as marketing and project management expenses.
It also includes impacts on revenues, such as the cancellation of planned July 2012 fare increases for some categories.
In April 2013, when the city approved full implementation of the Presto Card, city staff were asked to report back to the commission about the costs of the delay. At that point, the city received $3 million from Metrolinx for capital investment, and payment toward two-thirds of the forecast delay costs.
The city received another $1.56 million in “project work that had been identified as required by the city.”
Coun. Deans said there are now more than 140,000 Presto cards in active use in Ottawa, and there have been more than 16.5 million successful taps.
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