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HomeMy WebLinkAboutFIN-10-062 - Payment to Lakeside Performance Gas Services LtdREPORT Report To:Councillor B. Vrbanovic, Chair, and Members of the Finance and Corporate Services Committee Date of Meeting: April 12, 2010 Submitted By: Dan Chapman, General Manager of Financial Services Prepared By: Barry Musselman, Operations Manager Ward(s) Involved: All Date of Report: March 26, 2010 Report No.: FIN-10-062 Subject: Payment to Lakeside Performance Gas Services Ltd. RECOMMENDATION: THAT staff be authorized to pay Lakeside Performance Gas Services Ltd. a total of $47,828.90 for natural gas piping and meter set work completed in 2009. BACKGROUND: During the 2009 construction season Kitchener Utilities required the services of a firm that could undertake installation and repair of downstream natural gas piping and meter set work, to current code requirements. Although no single job exceeded the purchasing by-law limit in regard to obtaining formal quotes, the cumulative effect of the work over the entire construction season did exceed the limit. REPORT: Through the course of various maintenance and replacement activities Kitchener Utilities requires expertise for certain functions associated with the gas meters, customer piping and appliances. These functions include the replacement of re-lined gas pipe, the relocation of gas services that do not meet current CSA Z662 requirements, the removal of regulator pits, badly corroded mains and/or services (usually discovered during City reconstruction projects). Lakeside Performance Gas Services Ltd. was utilized by Kitchener Utilities at various points in 2009 to provide this expertise. No single job had an expense that exceeded the $20,000 limit required for formal quotes; however, the total expense for the entire year was $47,828.90. In the interest of ensuring full compliance with the purchasing by-law, Council approval is requested to authorize payment to Lakeside for this work. A similar situation is unlikely to occur in the future as Kitchener Utilities included this type of work in the gas main and service installation contract (T09-071), in force since October 16, 2009. ïð ó ï FINANCIAL IMPLICATIONS: Payment of $47,828.90 for services rendered will be funded from various cost centers. ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services ïð ó î