HomeMy WebLinkAboutFCS-16-013 - E15-068 Cons Svcs - Advisory Services for the Procurement Mgmt of Natural Gas Supply
REPORT TO: Committee of the Whole
DATE OF MEETING: 2016-01-25
SUBMITTED BY: Michelle Palmer-Novakovic, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Steve Rudak, Buyer, 519-741-2200 ext. 7213
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2015-01-12
REPORT NO.: FCS-16-013
SUBJECT: E15-068 Consultant Services – Advisory Services for the
Procurement and Management of Natural Gas Supply
___________________________________________________________________________
RECOMMENDATION:
That Expression of Interest E15-068 Consultant Services – Advisory Services for
the Procurement and Management of Natural Gas Supply, be awarded to Aegent
Energy Advisors Inc., Toronto, Ontario, at their estimated fee of $140,400., plus
H.S.T. of $18,252., for operating and settlement services, and Blackstone Energy
Services, Toronto, Ontario, at their estimated fee of $48,600., plus H.S.T. of
$6,308., for advisory and planning services, for an annual combined total of
$213,560., for a three (3) year term, with two (2) additional one (1) year renewal
terms based on satisfactory contract being negotiated.
BACKGROUND:
The City of Kitchener, Utilities Division (Kitchener Utilities), offers its 68,000 customers
the choice of purchasing system gas or utilizing Bundled Transportation Agreements
(frequently called Direct Purchase) for their natural gas requirements.
Since 2001, Kitchener Utilities has been recognizing the benefit from the assistance and
advice of energy management experts to manage the complexities of the market in the
purchasing of natural gas and the management of its upstream contracts.
The consultant providing operating and settlement services will provide management of
the City’s system gas providers as well as the coordination of the direct purchase
volumes between the City, Union Gas and customers.
*** 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 consultant providing advisory and planning services will coordinate the contracts
with the gas distribution and gas transportation providers as well as providing strategic
advice regarding current and long-term market trends, directpurchase issues and
opportunities, gas supply issues, asset optimization and transportation arrangements.
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, J. Chatterjee, Regulatory Analyst, L.
Baillargeon, Manager, Asset Optimization and S. Rudak, Buyer.
Expressions of interest were advertised publicly on the City of Kitchener website and on
the internet through the Ontario Public Buyers Association Electronic Tendering
Information System relative to this project. Documents were downloaded by twenty-one
(21) interested parties and by the closing date of Monday September 14, 2015, five (5)
responses had been received.
The review committee met on Friday September 18, 2015, to review the submissions
and a shortlist of three (3) candidates* was selected for further interviews. The
Committee met on Friday November 20, 2015 to interview the shortlisted candidates
followed by site office visits on December 18th. The Committee recommends splitting
the award with Aegent Energy Advisors, Toronto, Ontario and Blackstone Energy
Services, Toronto, Ontario.
The Committee rated consultants on the following criteria:
• Intellectual Capital / Experience
• Independence / Established Presence
• Capability – Market View / Intelligence / Regulatory
• Capability – Asset Management / Supplier Relations
• Capability / Settlement / Reporting
• Price
• Presentation
• Proposed Project Manager
• Response to Questions
• Questions Posed to City by Candidates
A listing of the responding parties follows for your reference:
Aegent Energy Advisors Inc. Toronto ON *
Blackstone Energy Services Toronto ON *
Comsatec Inc. Callander ON
Concentric Energy Advisors Marlborough MA USA
ECNG Energy L.P. Chatham ON *
*Shortlisted candidates
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ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
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 operating budget. The
estimated surplus (D) will remain in the account to fund other professional services.
Financial Summary for Expression of Interest E15-068
Consultant Services - Advisory Services for the Procurement
of Management of Natural Gas Supply
Total
Estimated Cost
Expression of Interest E15-068 costs, including HST 213,560.00
less: HST rebate (24,568.85)
Net Cost Being Awarded 188,991.15 A
Costs Incurred to Date -
Projected Costs (consulting fees for transition) 30,000.00
Estimated Cost 218,991.15 C
Budget
Professional Service Consultant 285,308.00
Total budget 285,308.00 B
Estimated Surplus/(Deficit) (B - C) 66,316.85 D
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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