Montreal to replace gas boilers with electric

Summary#

Montréal city council unanimously adopted its position for the agglomeration council to award Le Groupe Centco inc. a contract for decarbonization and heating-system replacement work at fire station 08. The agglomeration council makes the final decision at a later meeting. The city staff-stated goal is to reduce greenhouse-gas emissions and modernize the building’s heating controls.

  • The proposed work includes replacing gas boilers with electric dual-energy boilers, replacing the gas water heater with electric water heaters, and upgrading electrical service, ventilation and controls.
  • The proposed contract is $1,165,731.53, taxes included. The total authorized amount in the city council’s position is $1,398,877.84, including contingency and incidental-cost budgets.
  • The city’s position names Centco as the lowest compliant bidder. Eight bids were submitted, and all eight were found compliant.
  • The resolution also calls for an evaluation of Centco’s performance.

What it means for you#

  • Residents and taxpayers: The agglomeration is to bear the full expense under borrowing bylaw RCG 24-018. The materials do not say whether this will change tax rates.
  • Fire station users: City staff estimate the work would reduce emissions by about 97 tonnes of CO₂-equivalent and improve comfort through modernized controls. These are expected benefits, not guaranteed results.
  • City administration: The contract is scheduled to start in March 2026, with provisional acceptance in March 2027 and completion in March 2028. The materials say most work must be finished before the 2026–27 heating season.

Money#

The proposed total expenditure is $1,398,877.84, taxes included; the materials provide no estimate of the final net cost after the subsidy.

  • The amount includes the $1,165,731.53 contract, $174,859.73 for contingencies and $58,286.58 for incidental costs. The base contract is $1,064,468.27 net of tax rebates.
  • A government grant is expected to cover 58% of total expenses, if all expenses are committed before March 31, 2026.
  • City staff estimate the building’s operating budget will need to rise by 8% starting in 2027 to adjust for energy and technical-maintenance costs after the work.

What is unclear#

  • The materials do not give the dollar value of the grant or say what happens if the grant condition is not met.
  • They do not give an estimate of the building’s future energy and maintenance costs, only the estimated 8% budget increase.
  • The materials do not say whether the proposed heating systems will always operate without greenhouse-gas emissions.

Case for#

  • The tender drew eight compliant bids. City staff say the proposed contract price, including contingency, was 29.4% below the latest professional estimate, and that the bids indicate active competition.
  • The work is part of the city’s plan to reduce emissions from municipal buildings. Staff estimate it would cut emissions at this station by about 97 tonnes of CO₂-equivalent.

Case against#

  • The 8% estimated rise in the building’s operating budget could offset some of the upfront savings, but the materials do not estimate the added cost in dollars.
  • The grant depends on committing all expenses before March 31, 2026. City staff warn that a delay could put the grant at risk and affect the work schedule.