City extends HVAC maintenance contract

Summary#

On April 20, 2026, Montréal city council unanimously adopted a position to extend Baulne inc.’s building heating, ventilation and air-conditioning maintenance contracts for 12 months and authorize added spending. The agglomeration council makes the final decision at a later meeting. City staff say the extension is intended to keep maintenance services running in city buildings.

  • The extension would run from May 22, 2026, to May 21, 2027, covering planned and on-request maintenance.
  • The proposed added spending is $1,657,862.33, taxes included: $1,381,551.95 for services and $276,310.38 for contingencies.
  • It would raise the total value of the contracts to $8,667,920.97, taxes included.
  • Baulne must be available 24 hours a day, 365 days a year, to respond to service calls.
  • The contracts followed a 2022 public call for tenders that received three bids. The materials do not say whether Baulne’s bid was the lowest compliant bid.

What it means for you#

  • People who use city buildings: The decision concerns HVAC maintenance in various city buildings. It does not directly change residents’ rights, fees or eligibility for city services.
  • Taxpayers: The contracts would be funded from the operating budget of the city’s Service de la gestion et de la planification des immeubles. The agglomeration would cover 55.47% of the expense because the work relates to public safety.
  • The city and Baulne: The extension would continue an existing contract rather than award a new one through a tender for this 12-month period.

Money#

The proposed additional expense is $1,657,862.33, taxes included.

  • This includes $276,310.38 in contingencies, described as 20% of the contract costs.
  • City staff say the contract’s corrective-work costs were adjusted by 2.45% based on the consumer price index.
  • The city’s operating budget for building management would fund the expense; the agglomeration would bear 55.47%.

What is unclear#

  • The materials do not explain how or when the contingency money may be used.
  • They do not give a comparison with the cost of a new tender for the same period.
  • The city council’s adopted position is not the agglomeration council’s final decision.

Case for#

  • The extension would continue planned and on-request maintenance without a gap between contracts.
  • City staff say the current service is satisfactory and Baulne has accepted the extension.
  • City staff say not extending could affect building cleanliness and operations, and that temporary services from another firm would cost more.

Case against#

  • The added spending is substantial, and the materials do not compare it with bids for a new contract.
  • The $276,310.38 contingency adds to the authorized amount, but the materials do not specify how it would be released or reported.