HomeMy WebLinkAboutFCS-15-044 - City of Cambridge Proposal Supply and Installation of Water Meters
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: 2015-03-13
REPORT NO.: FCS-15-044
SUBJECT: City of Cambridge Proposal 2013-39 Supply and Installation of
Water Meters
___________________________________________________________________________
RECOMMENDATION:
That the City of Kitchener piggyback on the City of Cambridge Proposal 2013-39 Supply
and Installation of Water Meters, with Neptune Technology Group (Canada) Limited,
Mississauga, Ontario, at their proposed price of $733,121., plus H.S.T. of $95,305.73, for a
total of $828,426.73, with an option to renew for two (2) additional twelve (12) month
periods.
BACKGROUND:
The City requires a contractor to assume customer contact management services including
appointment scheduling, meter exchange work and follow up activities in support of Kitchener
Utilities residential water meter retrofit program.
The Asset Management Plan – Water Assets Report was finalized in September 2013 and
presented to Council in late 2013. The report indicated that a significant quantity of water meters
were beyond their prescribed replacement cycle. City staff currently replaces 3,100 water
meters per year. There are 22,100 needing replacement, and this requires that an experienced
contractor be engaged to complete the additional replacements. The 2015 program represents
25% of the backlog.
REPORT:
On April 16, 2013, the City of Cambridge issued Proposal 2013-39 Supply and Installation of
Water Meters and subsequently awarded to Neptune Technology Group (Canada) Limited, as
the vendor proposed the most favourable overall value.
The City of Cambridge’s specification stated that other municipal agencies may take advantage
of the terms and pricing offered. As a result, the City of Kitchener engaged in dialogue with
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Neptune Technology Group (Canada) who provided the City of Kitchener with a proposal based
on the City’s requirements.
The proposal was reviewed by A. Mick, Utilities Engineer, who concurs 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:
The net cost for this proposal (A), is fair and reasonable for a purchase of this scope and the
upset limit is within the budget allowance (B) provided within the budget. Funding for this
project is included within the approved Capital and Operating budget. The estimated surplus
(D) will remain within the account to fund similar work conducted by the City.
Financial Summary for City of Cambridge Proposal 2013-39
Supply and Installation of Water Meters
Estimated Cost
Proposal 2013-39 costs, including HST $828,427
Less: HST rebate on proposal (82,403)
Net Cost Being Awarded $746,024A
Costs Incurred to Date -
Projected Costs: Staff Time $247,561
Estimated Cost $993,585C
Budget
Replacement Water Meters
$768,000
New Water Meters 70,500
Existing Balances 211,585
Budget for this Purchase
$1,050,085B
Estimated Surplus/(Deficit) (B – C)
$56,500D
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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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