Montreal extends waste contracts for 12 months

Summary#

Montréal’s city council adopted a unanimous position supporting the first 12-month extension of two waste-service contracts with Waste Connections of Canada inc. / Enviro Connexions, from the original call for tenders 23-19905. The agglomeration council makes the final decision at a later meeting. City staff say the goal is to keep collection, transport and disposal services running until October 31, 2027.

  • The contracts cover household garbage from front-loading and semi-buried containers, and collection and transport of organic waste from semi-buried containers, across Montréal’s 19 boroughs.
  • The city’s position is to extend the contracts and authorize an additional $3,847,789.52, taxes included. This includes contract spending and budgets for contingencies, changes in quantities and price adjustments.
  • The original three-year contracts included two possible 12-month extensions. The company accepted this first extension; the contracts would run to October 31, 2027.
  • The contracts were awarded in 2023 after a public call for tenders with two compliant bids. The materials do not say whether this was the lowest compliant bid.
  • The proposed total for the contracts, including this extension and related budgets, is $11,434,168.78, taxes included, up from $7,586,379.26.

What it means for you#

  • Residents in Montréal boroughs: If the agglomeration council approves the extension, the contracted services would continue for eligible customers. The decision does not establish that every resident or property is covered.
  • The city and contractor: The city’s adopted position is to extend the two contracts and authorize the additional spending. The contractor has accepted the extension.
  • Residents and taxpayers: The decision does not change taxes, fees, or household waste rules.

Money#

The city’s position supports up to $3,847,789.52 in additional spending, taxes included; no separate funding source is identified in the materials.

  • The amount includes $2,358,042.79 for the 12-month extension, $650,862.38 for contingencies, $796,242.21 for changes in quantities, and $42,642.14 for price adjustments.
  • The decision text lists the contingency budget as $650,862.39, one cent more than the decision summary. The summary’s breakdown adds to the stated overall total of $3,847,789.52.
  • City staff say greater-than-expected garbage disposal and more containers requiring collection led to faster use of the original budgets. The total proposed contract value is 50.72% above the original amount.

What is unclear#

  • The agglomeration council’s decision is not included in these materials, so the extension and spending are not confirmed here as finally approved.
  • The materials do not explain which customers are eligible, or how service levels may differ between them.
  • They do not give a breakdown of the original contract’s spending already used versus the additional amounts, or explain how the contingency and quantity budgets will be used.
  • The decision summary contains the one-cent discrepancy in the contingency amount noted above.

Case for#

  • City staff say the extension would maintain services for eligible customers through October 2027, avoiding a gap as the existing contracts approach expiry.
  • Staff say the contractor’s service has been satisfactory and its prices remain competitive in the current economic conditions.
  • The extension uses an option included in the original contracts, and the contractor has agreed to it.

Case against#

  • The proposed total contract value is 50.72% higher than the original amount. City staff attribute this partly to underestimating garbage volumes and the number of containers, raising questions about the accuracy of the original estimates.
  • The materials do not say whether the original bids were the lowest compliant bids, or compare the extension’s cost with other options.
  • The city’s council has set a position, but the materials do not confirm the agglomeration council’s final decision.