HomeMy WebLinkAboutFIN-10-115 - Single Source - Natural Gas Regulator RunsREPORT
Report To:Councillor B. Vrbanovic, Chair, and Members of the Finance
and Corporate Services Committee
Date of Meeting:
June 21, 2010
Submitted By:
Dan Chapman, General Manager of Financial Services
Prepared By:
Les Jones, Utilities Engineer
Ward(s) Involved:
All
Date of Report:
June 11, 2010
Report No.: FIN -10 -115
Subject:
Single Source – Natural Gas Regulator Runs
RECOMMENDATION:
That Lakeside Process Controls be approved as the single source for the design, supply,
assembly, pressure testing, commissioning, training, and development of maintenance
procedures for five sets of regulators and associated components ("regulator runs") at
two of the City’s district regulator stations one located on Huron Road and the other on
Traynor Avenue.
BACKGROUND:
The supply of natural gas enters the City of Kitchener distribution system at two locations on the
west side of the City. From these locations the gas is transported through pipelines to three
district regulator stations where the gas pressures are reduced from 1380+ kpa (200+ psig) to
the distribution intermediate delivery pressure of 275 kpa (approx. 40 psig).
The regulator runs on the oldest of the three stations are due for replacement and upgrade to
current industry standards. These account for three of the five regulator runs mentioned above.
The two remaining runs are to be part of a new district station to be installed beside the new fire
hall no. 7 on Huron Road. This is to replace the existing district regulator station on Old Huron
Road at Biehn Drive.
Due to the chosen site for the new Huron Road Station and proximity to neighbours, there is a
need to utilize sound attenuating measures to minimize noise that the station will generate, the
easiest and most effective is to use sound attenuating regulators.
This report has been prepared to recommend sole sourcing the provision of the Huron Road
and Traynor Ave regulator stations to Lakeside Process Controls as they are the only known
supplier able to meet the City's requirements for the reasons outlined below.
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REPORT:
The natural gas distribution system, owned by the City of Kitchener, has only three district gate
stations, but these stations are of considerable importance to the supply of natural gas to the
citizens of Kitchener. A failure at any one of these stations could result in the intermediate
pressure distribution system experiencing a significant over pressure situation. In this situation
the high pressure gas will be driven through an intermediate pressure distribution system where
pipe and associated components are not rated to take this pressure and could be damaged as
well as producing damage to downstream customer owned appliances, damage to properties or
even loss of life. It is therefore essential that these district stations operate safely and effectively
under all operational conditions to mitigate the occurrence of such incidents.
Increasingly, the natural gas distribution industry in Ontario is utilizing products manufactured by
Emerson Process Management Regulator Technologies, Inc., and distributed by Lakeside
Process Controls to provide that level of performance. One of Emerson’s product lines, Fisher
Regulators, have been in use in the City of Kitchener distribution system for the past few
decades and have become one of City of Kitchener’s primary regulators of choice.
The reasons for approving Lakeside Process Controls as the single source include:
The only company that can provide all the components related to the design, supply of
regulators and appurtenance, assembly of the regulator runs, testing, commissioning,
training, and assistance in developing maintenance procedures. This will also include
factory testing of the completed regulator runs prior to being shipped to the site.
Other competitors would have to team up with possibly multiple service providers to
supply comparable products and services.
Proven industry standard products.
Because there are so few Kitchener district stations with significant importance, it is
equally important that mechanical components of the station be standardized. This will
help ensure that:
The components work well together in a predictable operation;
o
Maintenance staff are comfortable operating and maintaining the station;
o
Staff are comfortable troubleshooting known products, and reduces the need to
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stock required replacement equipment in case of emergency;
All training can be provided to all first responders in case of emergency;
o
Emerson Process Management distributed by Lakeside Process Controls, is the only
known distributer of a noise attenuating regulator that are desired to be installed at the
new Huron Station.
Reduced timelines so that these stations can be up an operational before the 2010 fall
heating season.
Excellent past customer service and product troubleshooting assistance.
FINANCIAL IMPLICATIONS:
Funding for the New Huron Station and Vanier Station Upgrade will come from Internal Orders
#19 and #59500468. Total funding currently available in the two internal orders is $416,748.
The costs of the sole sourcing contract are expected to be approximately $187,512. The
remaining $229,236 in the accounts will be used for site preparation, distribution piping, cathotic
protection measures, metering, fencing, landscaping, lighting and electrical work for the
stations. If any funds are remaining at the end of the project, they will be returned to the Gas
Utility.
ACKNOWLEDGED BY:
Dan Chapman, General Manager of Financial Services
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