HomeMy WebLinkAboutFIN-18-033 - Natural Gas and Electric Residential Water Heaters - ExtensionREPORT TO:Committee of the Whole
DATE OF MEETING:2019-01-29
SUBMITTED BY:Margaret Fisher, Director of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Laurie Stecho,Supervisor of Purchasing,519-741-2200 ext. 7089
WARD (S) INVOLVED:N/A
DATE OF REPORT:2019-01-15
REPORT NO.:FIN-18-033
SUBJECT:Natural Gas and Electric Residential Water Heaters -Extension
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RECOMMENDATION:
That the existing contract withGiant Factories Inc.,Montreal, Quebec,and A.O. Smith
Enterprises Ltd., Fergus, Ontario,for the purchase of Natural Gas and Electric Residential
Water Heaters be extended to May 1, 2019.
BACKGROUND:
The City typically goesout to tender every 3 years to secure pricing related to the purchase of
that supply water heaters expired in 2018. There have been delays during tendering process
that requires the City to extend its existing contract with its current suppliers until May 1, 2019.
REPORT:
Water Heaters are an annual requirement in support of the City
The rental water heater program was established in 1989 to ensure affordable hot water service
water needs by delivering a program with economical rental rates and great customer service.
Kitchener Utilities offer a full range of water heaters with the latest technologies including high
efficiency Energy Star compliant water heaters.
T15-020Water Heaters: Residential Regular Tank expired April 30, 2018.The Tender process
was delayed. Both Giant Factories Inc and A.O. Smith held current contract pricingto August
31, 2018 and to September 30, 2018respectively.
A new tender T18-019Natural Gas and Electric Residential Water Heaters was released August
7, 2018 and closed August 24, 2018, with an expected date for recommendation to award going
to Council on September 26, 2018. In reviewing the pricing, the overall cost to supply water
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
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heaters representedThis has prompted
the City to re-tender in 2019.
The estimate spend from May 1, 2018 toMay 1, 2019will be approximately $3,013,045.65. The
actual spend will depend on the level of activity until a new Tender is in place.
A Tender will be issued in February with a recommendation to award going to Council April 1,
2019with a new contract for Water Heaters in place byMay 1, 2019.Interim pricing has been
secured with existing vendors until that time.
FINANCIAL IMPLICATIONS:
Water heaters are a capital asset and their installation/replacement is funded through rental
rates.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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