Government Operations committee  There were a lot of discussions about the $65 million to $80 million exposure if the contract was not executed prior to the deadline--

Government Operations committee  The October 15 date was the date we had committed to the contractor for and to secure all the approvals. As we've explained before, we had negotiated some ability to what I would call “clean up the paperwork”, both on the contribution agreement and on the property acquisition, and mostly on the property acquisition, which the city could have waived.

Government Operations committee  As we've stated before, yes, this was unexpected and unanticipated.

Government Operations committee  Well, as we've stated before, from the city's perspective, we certainly believed we had met all of the requirements. This was not a project that came forward at the last minute; there were years of planning behind this project, and numerous council approvals throughout those many years.

Government Operations committee  I was the chair of the working group. All of our discussions led me to believe that we had fully met all of the requirements.

Government Operations committee  Yes, this was required for the approvals under the Canadian Environmental Protection Act.

Government Operations committee  When we brought forward the project, we were dealing with Transport Canada. Our colleagues in the department did not point out anything in particular.

Government Operations committee  Our only communication with Treasury Board concerned the final decision. That decision stated that funding was contingent on one condition.

Government Operations committee  As Mr. Wouters mentioned, it is a prerogative of Treasury Board to impose conditions. It chose to impose that condition for its own reasons. The city did everything in its power to comply with that condition, which brought about the result that we are now aware of.

Government Operations committee  That's right.

Government Operations committee  I think that there are many reasons that could justify a change. In this case, following the discussions we had with the province and our colleagues from the federal government, we had fully complied with all of the conditions that had been set out for us. We had received our colleagues' approval in that regard.

Government Operations committee  In fact, these large-scale projects are always studied in depth. Conceptual studies dating from 2003 had been done for a light rail project and had received all the necessary authorizations from city council and the province of Ontario. Further to the announcement, in spring 2004, concerning the funding that would be made available by the province and the federal government, the city immediately began the environmental impact assessment study.

Government Operations committee  Not in terms of the budget, no. All the conditions of the contract were very clear. The risks were to be assumed by the city. The contract conditions were such that city council was very comfortable with all its clauses. In July 2006, it had approved the awarding of the contract by a vote of 14 to 7.

Government Operations committee  I don't think I can answer that question. All I can say is that due process was followed. City council had approved the contract and further to the approval of Treasury Board, which was conditional on submitting the project to the new city council, the new council ratified the original decision by city council and also asked the city manager, Mr.

Government Operations committee  A budget of $730 million was approved by city council. The amounts in the tenders received were less than 2% higher. At that time, the total cost of the project amounted to approximately $744 million, which was considered a great success by our city council. The agreements with the province and the federal governments were very clear: federal and provincial contributions would total no more than $200 million.