Summary#
Montréal city council unanimously adopted a position in favour of awarding a banking-services contract to the Fédération des caisses Desjardins du Québec. The city council’s decision sets Montréal’s position; the agglomeration council makes the final decision at a later meeting. The goal, as described by city staff, is to keep the City’s financial operations running when its current contract ends on May 31, 2026.
- The proposed contract covers five years, starting in June 2026, for $2,291,231.87, taxes included.
- It includes two options to extend the contract for three years each, on the same terms and conditions and subject to a written agreement.
- The public call for tenders received three bids; two were rejected. Desjardins was the lowest compliant bidder.
- The resolution also calls for an evaluation of Desjardins’s performance at the end of the contract.
What it means for you#
- Residents paying City taxes or fines: The contract would support the City’s collection of those payments through various payment methods. The decision does not change tax or fine amounts.
- City suppliers, employees and debt beneficiaries: The banking services would support payments to them.
- The City: The contract covers processing payments and managing City bank-account transactions. City staff say the current contract ends May 31, 2026, so a replacement is needed for continuity.
Money#
The five-year contract amount is $2,291,231.87, taxes included; no separate cost estimate is given for the full contract term after renewals.
- Costs are charged according to use and funded from the operating budget of the Finance and Property Assessment Department. The budget credits were included when setting the rate for general administrative expenses charged to the agglomeration budget.
- City staff estimate the two three-year renewal options at $5,679,349.75. That estimate is not part of the five-year contract amount approved in the council’s position.
- City staff say the contract cost is 47% below the City’s estimate, but 46% higher than the final year of the current contract.
What is unclear#
- The resolution does not say whether the renewal options will be used. It requires a written agreement for an extension.
- The resolution does not give the eventual cost of the renewal options; the $5,679,349.75 figure is an estimate.
- The materials do not give the number of City staff involved in overseeing the contract or the cost of the required performance evaluation.
Case for#
- A possible argument for the contract is that the City needs banking services for collecting revenue and paying suppliers and employees.
- Desjardins was the lowest compliant bidder, and its bid was below the City’s estimate.
- The five-year term and possible extensions could help maintain the services beyond the end of the current contract.
Case against#
- One concern is that the proposed five-year cost is 46% higher than the final year of the current contract.
- The renewal options could add substantial costs, but the amount shown is an estimate, not a fixed total.
- Two of the three bids were rejected, so only one bidder was compliant. The materials do not explain why the other bids were rejected.