Summary#
Montréal city council unanimously approved its position to award Systèmes Urbains inc. a contract for phase 2 of electrical upgrades at the Complexe environnemental de Saint-Michel in Villeray–Saint-Michel–Parc-Extension. The agglomeration council makes the final decision at a later meeting. City staff say the work is intended to update equipment used to capture and manage landfill gas as the amount of gas declines.
- The proposed contract is $1,091,693.37, taxes included, plus $163,754.01, taxes included, for contingencies: a total of $1,255,447.38.
- The work includes a new electrical supply, transformer, backup generator and electrical container, as well as changes to existing distribution and control systems and related civil work.
- Two compliant bids were received through a public call for tenders. Systèmes Urbains inc. was the lowest compliant bidder.
- The contractor must complete the work within 365 calendar days after receiving the order to start. The city will evaluate its performance.
What it means for you#
- Residents and park users: The decision concerns equipment at the former landfill site, now being converted into Parc Frédéric-Back. It does not directly change residents’ rights or services.
- The city and agglomeration: The proposed expense is to be paid entirely by the agglomeration. City staff say budget is available from a reserve for environmental liabilities related to the site’s post-closure activities.
- Systèmes Urbains inc.: If the agglomeration council approves the contract, the company will do the work under the contract terms. The decision summary says delay penalties apply, with a minimum of $1,000 per day; the amount depends on the type of roadway served.
Money#
The proposed total is $1,255,447.38, taxes and contingencies included; the expense would be fully paid by the agglomeration.
- The base bid is $1,091,693.37, taxes included. The contingency budget is $163,754.01, taxes included.
- City staff estimate the proposed total is 17.17% below their latest estimate of $1,515,640.61, including contingencies and taxes.
- Staff say the expense is budgeted from a reserve for the site’s post-closure environmental work. No separate cost estimate for staff time is given.
What is unclear#
- The agglomeration council’s final decision is not included in these materials.
- The materials do not explain when or how the contingency budget may be used.
- The decision summary gives conflicting figures for the total before taxes: its financial section says $1,091,930.75, while the resolution’s base bid is $1,091,693.37, taxes included.
- The materials do not say how the work will affect access to the site while construction is underway.
Case for#
- City staff say updated equipment is needed to adapt the gas-management system to declining gas volumes and replace equipment that has reached the end of its useful life.
- Staff say the current generator does not meet the site’s operational needs during increasingly frequent power outages.
- The selected bid was the lowest compliant bid and was below the city’s estimate.
Case against#
- Only two compliant bids were received, although six companies obtained the tender documents.
- Staff say the selected bid’s general site costs were about 1% of its total, compared with nearly 13% in the city’s estimate. They recommend awarding the contract, but the difference leaves uncertainty about why the bid was substantially lower.
- The decision authorizes a contingency budget, but the materials do not set out the circumstances in which it would be spent.