Summary#
Montréal city council unanimously adopted a position asking the agglomeration council to award Reftech International inc. a contract to upgrade sludge-incineration systems 2 and 4 at the Jean-R.-Marcotte wastewater treatment plant. The stated goal, according to city staff, is to maintain reliable equipment for treating sludge and protect health and the environment. The agglomeration council makes the final decision at a later meeting.
- The proposed contract is $1,291,587.33, taxes included. Reftech was the only compliant bidder among two bids received.
- The proposed total spending limit is $1,549,904.80, taxes included, including $258,317.47 for contingencies (extra costs for unexpected work).
- The council’s position also calls for an evaluation of Reftech’s performance.
- City staff say the work is expected to take about six weeks. The plant’s incineration capacity would be reduced by 25% during that time.
What it means for you#
- Residents and wastewater service users: No direct change to residents’ rights, fees, or access to service is stated. City staff say the work is intended to maintain equipment used to treat wastewater and sludge.
- Treatment plant staff: City staff say damaged components could create a risk of toxic incineration gases entering the sludge building. The work period would also leave the plant more vulnerable if another incinerator had an unexpected problem.
- Reftech International inc.: If the agglomeration council approves the position, Reftech would receive the contract and be subject to a performance evaluation.
- Taxpayers: The decision sets a proposed maximum expense, but the supplied material does not provide complete information on how it will be financed.
Money#
The proposed maximum expense is $1,549,904.80, taxes included; no separate estimate of the net cost to the city is available in the supplied material.
- The contract amount is $1,291,587.33, taxes included. The contingency budget is $258,317.47, also taxes included.
- Two bids were received; one was compliant. The other was rejected because it did not include a required letter of intent to insure. The compliant bid was $234,666.80, or 13.15%, below the city’s estimate.
- City staff say they negotiated with Reftech but obtained no price reduction.
- The decision summary’s financing section is cut off, so the funding source cannot be confirmed.
What is unclear#
- The exact work will depend on inspections after the incinerators are shut down and cleaned. The materials list possible repairs, but do not say which will be required.
- The materials do not give the contract’s full schedule, term, or the details of delay penalties.
- It is unclear how much, if any, of the contingency budget will be used.
Case for#
- City staff say the incinerators need regular major repairs to keep sludge treatment operating reliably.
- Staff say replacing damaged parts may help protect the plant’s structure and reduce the risk of toxic gases entering the building.
- The only compliant bid was below the city’s estimate, though the bid remained unchanged after negotiation.
Case against#
- The contract would be awarded on the basis of one compliant bid, so there was no comparison between multiple compliant offers.
- The proposed contingency is 20% of the contract amount, while the final work is not yet known.
- During the expected six-week work period, incineration capacity would fall by 25%, leaving less capacity if another incinerator has an unexpected problem.