HomeMy WebLinkAboutFIN-10-100 - E10-059 - Consultant Services - Kitchener Utilities Marketing
REPORT
REPORT TO:
Mayor Carl Zehr & Members of Council
DATE OF MEETING:
2010-06-14
SUBMITTED BY:
Larry Gordon, Director of Supply Services
PREPARED BY:
Larry Gordon, Director of Supply Services (2214)
WARD(S) INVOLVED:
N/A
DATE OF REPORT:
2010-06-08
REPORT NO:
FIN 10-100
SUBJECT:
E10-059 - Consultant Services – Kitchener Utilities Marketing
RECOMMENDATION:
That Expression of Interest E10-059, Consultant Services – Kitchener Utilities Marketing, be
awarded to Quarry Integrated Communications, Waterloo at their estimated fee of $200,000.,
plus H.S.T. of $26,000., for a total of $226,000., based on a satisfactory contract being
negotiated and an upset fee being established, and further that the Mayor and City Clerk be
authorized to execute an agreement satisfactory to the City Solicitor.
BACKGROUND:
As a Natural Gas Utility, Kitchener Utilities must follow rules and regulations the Ontario
Energy Board applies on to other providers. One such ruling is to avoid cross
subsidization of competitive programs and services. Utilities are to pay fair market price
for competitive services to ensure all providers have a fair position in the market place
and not a competitive advantage over one another. To follow this ruling, Kitchener
Utilities renders the services of an outside Marketing Agency for the marketing of
their competitive programs to ensure fair market rates and costs are incurred.
Kitchener Utilities' competes for market share with other private industry
companies. As a result, Kitchener Utilities must regularly conduct customer research
and market and educate customers of their programs and services to maintain and
increase program market share. These services must be incurred at fair market rates.
Outside agencies provide the advantage of being able to share marketing expertise
learned through other clients in similar businesses to create and deliver programs
specific for Kitchener Utilities. A Marketing Agency is required as not all marketing
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services are offered by internal Communications. Also, outside agencies are able to
provide around the clock service to ensure critical deadlines are met when risks and
opportunities arise in the marketplace. The services of an outside Marketing Consultant
are necessary to compete with other private industry providers and to continue to
maintain and grow our program's customer base. Internal Communications services are
utilized on Kitchener Utilities' non-competitive programs marketing.
REPORT:
In accordance with Chapter 170 of the Municipal Code pertaining to the Selection of
Professional Services/Consultants, a Consultant’s Review Committee was established
consisting of W. Malcolm, Director of Utilities, M. May, Director of Communications/Marketing,
T. Gerber, Marketing Strategist, and L. Gordon, Director of Supply Services.
Expressions of interest were advertised in The Record, on The City of Kitchener Home Page
and on the internet through the Ontario Public Buyers Association Electronic Tendering
Information System relative to this project. Documents were downloaded by thirty-three (33)
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interested parties, and by the closing date of Friday May 7, 2010, eight (8) responses had
been received.
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The Review Committee met on Wednesday May 19, 2010 to review the submissions and a
shortlist of three candidates was selected for further interviews. The Committee met on
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Wednesday May 26, 2010 to interview the shortlisted Candidates. The Committee elected to
award the project to Quarry Integrated Communications, Waterloo.
A listing of the responding parties follows for your reference.
Interkom Inc., Burlington
Pink Elephant Consulting Ltd., Mississauga
RyanEdwards, Toronto
Larter Marketing & Communications, Aurora
PMG Intelligence, Waterloo
Quarry Integrated Communications, Waterloo
eSolutions Group, Waterloo
Brickworks Communications Inc., Burlington
FINANCIAL IMPLICATIONS:
Funding will be provided from Utilities Cost Centers – 5033001 – Water, 5018170 - Gas
Delivery, 5018540 Gas - Supply, 5018455 - Gas – Rental Water Heaters, 5018430 - Gas -
Financing, 5018095 - Gas – Appliance Service and Internal Order 59500261 - Demand Side
Management
Financial Report is attached.
Budget is $226,000.
ACKNOWLEDGED BY:
Dan Chapman, General Manager of Financial Services and City
Treasurer
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