City approves $9,893,392.63 oxygen unit contract

Summary#

Montréal city council unanimously adopted a position supporting an additional $1,993,689.09, taxes included, for AtkinsRéalis’s contract to design and support construction of an oxygen-production unit at the Jean-R.-Marcotte wastewater treatment plant. This is a proposed increase to an existing contract, not a new program; the stated goal is to supply oxygen for a future ozone wastewater-disinfection system. The agglomeration council makes the final decision at a later meeting.

  • The city council’s position is to approve an amendment raising the contract total to $9,893,392.63, taxes included.
  • The resolution allocates $1,898,751.52 to additional services and $94,937.57 to contingency funds.
  • If approved by the agglomeration council, the amendment would let the director of the city’s major projects department sign it.
  • The original contract was awarded to AtkinsRéalis after a public call for tenders that received one bid.

What it means for you#

  • Agglomeration taxpayers: The cost is to be financed by borrowing under bylaw RCG 15-04 and charged to agglomeration taxpayers. The materials do not say what this means for any individual tax bill.
  • Residents and users of the treatment plant: The added services concern design and construction support for the oxygen unit. The decision does not itself put the ozone-disinfection system into operation.
  • City administration: If the agglomeration council approves the additional spending, the named director may sign the contract amendment.

Money#

The city council’s position would authorize $1,993,689.09, taxes included, in additional spending.

  • The resolution assigns $1,898,751.52 to services and $94,937.57 to contingencies.
  • The total contract would rise to $9,893,392.63, taxes included.
  • The agglomeration would pay, using borrowing under RCG 15-04.

What is unclear#

  • The agglomeration council’s final decision is not included in these materials.
  • The staff summary gives the services amount as $1,898,751.51, one cent less than the resolution’s amount. The resolution’s figures add to the stated total.
  • The materials do not give a separate cost estimate for possible later construction or operating costs of the oxygen unit.

Case for#

  • City staff say the oxygen unit is needed to supply the future ozone system, which is intended to improve treated water quality and reduce microbiological contamination in the St. Lawrence River.
  • Staff say the design grew more complex because of noise limits, safety requirements, risk studies and regulatory needs.
  • Staff say changing firms could mean delays, repeated engineering work and added costs.

Case against#

  • The proposed increase is substantial, and the original call for tenders drew only one bid.
  • The extra work would be added to the existing contractor’s agreement rather than competed through a new call for tenders.
  • The materials explain staff’s reasons for the increase but do not provide an independent estimate comparing the amendment with other ways to complete the work.