Montréal funds extra waste contracts

Summary#

Montréal’s city council unanimously adopted an orientation to authorize an extra $2,516,716.70, taxes included, for seven existing waste-disposal contracts. The agglomeration council makes the final decision at a later meeting. City staff say the extra funding is intended to keep services going while new tenders are prepared.

  • The proposed increase covers WM Québec inc.’s contract for LaSalle (lot 1) and Recyclage Notre-Dame inc.’s contracts for six ecocentres: Acadie, Côte-des-Neiges, LaSalle, La Petite-Patrie, Rivière-des-Prairies and Saint-Michel (lots 5–9 and 11).
  • The increase is split between $1,006,686.68 in contingency funding and $1,510,030.02 for changes in quantities. The contracts are currently due to end by October 31, 2028.
  • City staff project that, even with the increase, six contracts will run out before then: lot 1 in November 2027; lot 5 in April 2028; lot 6 in June 2027; lot 7 in October 2027; lot 8 in January 2028; and lot 9 in June 2027. Lot 11 is projected to last until October 31, 2028.
  • The original contracts were awarded after a 2023 public call for tenders that received four bids. The materials do not say whether these firms submitted the lowest compliant bids.

What it means for you#

  • Residents and ecocentre users: The decision does not directly change what residents can bring to ecocentres or what they pay. It would fund disposal of non-recoverable construction, renovation and demolition waste at the six named ecocentres, as well as household waste disposal in LaSalle.
  • Agglomeration municipalities and taxpayers: The expense would be paid entirely by the Montréal agglomeration. City staff say the added amounts would help maintain services while the city seeks new bids for replacement services.
  • Contractors: The decision would add funds to existing contracts; it does not itself award new contracts. The summary says the contracts cannot be extended early when their funds run out, so the city will need to seek the market again.

Money#

The proposed additional contract spending is $2,516,716.70, taxes included.

  • It would be charged to the existing operating budget, with no budget adjustment, and paid 100% by the Montréal agglomeration.
  • A separate Québec government disposal levy is not included in the contract amount. City staff estimate it at about $1,200,472 net over three financial years and say the city receives an equivalent amount through a government grant.
  • The decision title gives the increased total contract value as $13,086,926.84, taxes included. The summary gives a rounded total of $13,086,927.

What is unclear#

  • The title’s total of $13,086,926.84 is one cent lower than the sum of the original contract amounts in the summary and the proposed increase.
  • The materials do not give a breakdown of how much of the added amount each contract is expected to use before it runs out.
  • The summary does not give the expected cost of the future tenders or say when they will be issued.

Case for#

  • City staff say waste volumes exceeded forecasts. For ecocentres, they point to a period when known gypsum recyclers in Québec were closed, as well as increased ecocentre use.
  • Extra funding could keep disposal services operating while the city prepares new public tenders.
  • The increase would fund existing services rather than leave the contracts without money before replacement services are arranged.

Case against#

  • The increase would raise the value of the seven contracts by 23.81%, according to the summary, yet six are still projected to run out before their planned end date.
  • The materials do not explain how the city will prevent future contracts from underestimating the quantities needed.
  • The added spending is substantial, and the materials do not compare it with other ways to handle the extra waste.