HomeMy WebLinkAboutFCS-16-182 - T16-064 Domestic NG Meters
REPORT TO: Committee of the Whole
DATE OF MEETING: 2016-12-12
SUBMITTED BY: Michelle Palmer, 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: 2016-11-10
REPORT NO.: FCS-16-182
SUBJECT: T16-064 Domestic Natural Gas Meters
___________________________________________________________________________
RECOMMENDATION:
That Tender T16-064 Domestic Natural Gas Meters, be awarded as follows:
Elster Canadian Meter, Burlington, Ontario, for the purchase of residential (series
250 and 450) meters, at their tendered price of $441,925., plus H.S.T. of $57,450.25,
for a total of $499,375.25; and,
KTI Limited, Aurora, Ontario, for the purchase of commercial (sonic 800) meters, at
their tendered price of $55,500., plus H.S.T. of $7,215., for a total of $62,715.,
each for a one (1) year term with option to renew for four (4) additional twelve (12)
month terms.
BACKGROUND:
The replacement of domestic gas meters is an on-going maintenance, repair and
operational requirement. Meter exchanges are also regulated through Measurement
Canada and the City is required to comply with regulations as prescribed by
Measurement Canada. This contract is for the supply of meters.
The average annual spend over the past three (3) years was $366,017., before taxes.
The actual spend will depend on the level of activity throughout the term of the contract.
*** 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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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 eight (8) interested parties and by the closing date of Thursday
November 3, 2016, four (4) tenders had been received.
The following tenders were received: Bid Price Adjusted Price
G.E. Oil & Gas Canada Inc. Mississauga ON $ 96,050.00
Elster Canadian Meter Burlington ON $499,375.25 *
KTI Ltd. Aurora ON $576,752.00 *
C.R. Wall & Company Inc Cambridge ON $558,643.75 $558,633.01
The tender from G.E. Oil & Gas Canada Inc. was a partial bid for the commercial meters
only and was not the lowest unit price for that item.
The price for natural gas meters has increased 17.25% from the 2012 tender.
The tender was reviewed by L. Jones, Utilities Engineer and S. Rudak, Buyer who
concurs with the above recommendation.
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 Capital budget. The estimated surplus
(D) will remain within the account to fund similar work conducted by the City.
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Financial Summary for Tender T16-064
Domestic Natural Gas Meter & Regulator Retrofit Service
Estimated Cost
Tender T16-064 costs, including HST 562,090.25
less: HST rebate on tender (64,665.25)
Net Cost Being Awarded 497,425.00 A
Costs Incurred to Date -
Projected Costs : Staff Time -
Estimated Cost $ 497,425.00 C
Budget for this Phase of Work
Small gas meters - 2017 450,000.00
Large gas meters - 2017 60,000.00
$ 510,000.00 B
Budget for this Purchase
Estimated Surplus (B - C) 12,575.00 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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