Quote:
Originally Posted by Dundas
I wonder how much money RTG is going to ask the city every year for this 30year maintenance contract? There's no money to be made for this contract by RTG thats forsure. The city just wants to contract out its work and start laying off people at OC.
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The amount has already been fixed. RTG and the City agreed to an annual maintenance charge when they signed the construction contract. The amount goes up every year to account for inflation but other than that, it's fixed.
That's the beauty of it. RTG can't change the fees. There are of course service standards RTG must meet that prevent them from cutting services to reduce costs. This means the only way for them to maximize their profits is to maximize efficiency. And as they're also in charge of station design, it means they'll design stations that are easy to maintain, considering possible operational savings when deciding the capital budget. If it costs them $10M* to install heated floors in a station, but doing so saves them $500k* a year on snowclearing--thus saving $15M over 30 years--they'll do it. If the city was in charge of everything, they probably would cut that $10M from the project "to save on costs" and not really care about the maintenance implications. Or you'd have a union of snowclearers create a public hooplah and force the city to leave them out, or some such.
That may also be the reason why we've seen the loss of wood from the design. Wood is probably less efficient from a maintenance perspective, so unless the city actually required it in the text of the contract (which they probably didn't), RTG is free to get rid of it, which they've now done.
*I invented these numbers to demonstrate my point, have no idea what the actual costs of heated floors and snow clearing are.