HomeMy WebLinkAboutFCS-15-043 - T15-021 Water Heaters Preventative Maintenance Inspections De-Liming Services
REPORT TO: Committee of the Whole
DATE OF MEETING: 2015-03-23
SUBMITTED BY: Larry Gordon, Director of Supply Services, 519-741-2200 ext.
7214
PREPARED BY: Steve Rudak, Buyer, 519-741-2200 ext. 7213
WARD(S) INVOLVED: All
DATE OF REPORT: 2015-03-18
REPORT NO.: FCS-15-043
SUBJECT: T15-021 Water Heaters: Preventive Maintenance Inspections /
De-Liming Services
___________________________________________________________________________
RECOMMENDATION:
That Tender T15-021 Water Heaters: Preventive Maintenance Inspections / De-Liming
Services, be awarded to Afterglow Ltd., Waterloo, Ontario,at their adjusted price of
$319,800., plus H.S.T. of $41,574., for a total of $361,374., for one (1) year with an option
to renew for two (2) additional twelve (12) month terms.
BACKGROUND:
The water hardness in Kitchener is in excess of 25 grams per gallon. The hardness of the water
contributes to reducing the life of water heaters. The inspection and the removal of lime
increases safety and extends the life of water heaters up to an additional three (3) years.
Inspection and de-liming is intended to meet regulatory obligations of the Technical Standards
and Safety Authority.
The average spend over the past three (3) years has been $123,000 per annum. The 2015
budget for this activity is $320,000 and reflects increased inspections to comply with legislation.
REPORT:
Tenders were advertised publicly on the City of Kitchener website and the Internet through the
Ontario Public Buyers Electronic Tendering Information System. Documents were downloaded
by twelve (12) interested parties, and by the closing date of Thursday February 26, 2015, two
(2) bids had been received.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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The following tenders were received:
Adjusted
Bid Price Bid Price
Afterglow Limited Waterloo ON $369,707.75 $361,374.00*
Sponagle & Sons Cambridge ON $373,465.00 $367,815.00
The tender award amount has been reduced as City owned commercial tanks will be serviced
by Facilities Management staff.
The price for residential service has increased 18% from the 2012 contract.
The tender was reviewed by B. Nash, Manager of Customer Relations and M. Wigzell,
Supervisor of Facilities Management, who concur with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Financial Management
Strategic Direction: Ensure responsible use of public funds within a supportive policy
framework.
The City of Kitchener’s purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
FINANCIAL IMPLICATIONS:
Funding of $320,000 is budgeted for this activity in the Rental Water Heater contracted services
budget. Gas operations are exempt from HST, so the cost of the tender excluding HST
($319,800) is within budget.
COMMUNITY ENGAGEMENT:
INFORM - Potential vendors are informed of bid opportunities through the public posting of bid
documents as outlined in the City’s Purchasing By-Law. Vendors, local media and the general
public are informed of purchasing recommendations to Council through the public reports which
are included with the Council agenda the week prior to the Council meeting.
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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