City awards Hydro-Québec line-relocation contract

Summary#

Montréal city council adopted a decision awarding Hydro-Québec a direct contract to move electricity distribution lines for the Papineau Avenue–rue des Carrières underpass reconstruction, in Rosemont–La Petite-Patrie and Plateau-Mont-Royal. The maximum total spending is $313,826.86, taxes included.

  • Hydro-Québec will carry out the line-relocation work, including designing, supplying and installing new cables.
  • The city awarded the contract without a call for tenders because, according to city staff, the work must be done by Hydro-Québec on its own network.
  • The contract work is separate from the main reconstruction contract with Loiselle inc.; the decision also authorizes $40,933.94 for contingencies.
  • A city infrastructure director is authorized to sign Hydro-Québec’s work-evaluation agreement.

What it means for you#

  • People using the area: This work is part of the underpass reconstruction. City staff say the bridge cannot be demolished and rebuilt until Hydro-Québec completes the line moves. The decision does not set out changes to access or traffic arrangements.
  • City taxpayers: The expense will be financed through borrowing bylaw 22-040. The materials do not state the repayment period or source.
  • Electricity customers: The decision does not directly change electricity rates, service, or customer rights.

Money#

The maximum authorized spending is $313,826.86, taxes included; the net amount after tax rebates is $286,565.75.

  • $272,892.92, taxes included, is for Hydro-Québec’s work; $40,933.94, taxes included, is for contingencies.
  • The contract was awarded directly, not through a call for tenders. City staff describe Hydro-Québec as the exclusive provider for work on its network.
  • City staff say the main reconstruction project is financed under borrowing bylaw 22-040.

What is unclear#

  • The decision does not explain how the contingency money will be approved or used.
  • It does not give a breakdown of the estimated cost for each part of Hydro-Québec’s work.

Case for#

  • City staff say Hydro-Québec must do this work on its own network, which supports awarding the contract directly rather than seeking bids.
  • City staff say the underpass work depends on the line moves, so awarding the contract helps avoid delays to the larger reconstruction project.

Case against#

  • Without competing bids, the materials do not show how Hydro-Québec’s price compares with other possible prices.
  • The decision authorizes contingencies of about 15% of the contract amount, but does not explain how much of that allowance is expected to be used.