HomeMy WebLinkAboutFIN-19-020 - T19-029 Natural Gas Meter Set Installation and Inspection ServicesREPORT TO:Committee of the Whole
DATE OF MEETING:2019-03-04
SUBMITTED BY:Margaret Fisher, Director of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Alex Albrecht,Buyer,519-741-2200 ext. 7216
WARD (S) INVOLVED:N/A
DATE OF REPORT:2019-02-14
REPORT NO.:FIN-19-020
SUBJECT:T19-029 Natural Gas Meter Set Installation and Inspection Services
__________________________________________________________________________________________
RECOMMENDATION:
That Tender T19-029Natural Gas Meter Set Installation and InspectionServices,be
awarded to Lakeside Performance Gas Services, Kitchener, Ontario, at their tendered
price of $40,001.06, plus H.S.T. of $5,200.14, for a total of $45,201.20,for a one (1) year
term, with an option to renew for two(2) additional twelve (12) month terms.
BACKGROUND:
Kitchener Utilities is a regulated natural gas utility with an average annual increase of about 1600
new customers. Every new customer will require a new gas meter and inspection of natural gas
appliances within the premise. Thislarge volume of work places a capacity burden on Kitchener
Utilities Staff.At times when Kitchener Utilities staff have an overwhelming workload and might
not be available, the outsourcing of new gas meter installations and inspection services to a
qualified contractor will ensure that Kitchener Utilities continues to meet the needs of the
Gaseous Code B149-15.
being met in a timely manner.Outsourcing also providesa consistent approach to inspections,
which will assure a high level of public safety at all times.
This tender is based on fixed unit prices on an estimated representativeof natural gas meter set
installation and inspection services over the past year.
This was anewly outsourced contract in 2018. The spend over the past yearwas $38,872.16,
before taxes. The actual spend will depend on the level of activity throughout the term of the
contract.
REPORT:
As per clause 170.7.3 of the Purchasing By-law 2017-
Value, the Director of Supply Services shall submit a report to Council recommending award of
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a purchase greater than $100,000 if any one or more of the following conditions apply: d. only
one bid wasThe three year spend exceeds the $100,000
threshold.
Tenders were advertised publicly on the City of Kitchenerwebsite. Documents were downloaded
by four(4) interested parties and by the closing date of FridayFebruary 8, 2019,one(1) tender
had been received.
The following tender wasreceived:
Bid Price
Lakeside Performance Gas ServicesKitchenerON$45,201.20
The price for natural gas meter set installation and inspection serviceshas increased 2% from
the 2018contract.
The tender was reviewed by P.Pavlinich,Manager of Customer Relations, who concurs with the
above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the
the delivery of core service.
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FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a project of this scope and the upset
limit is within the funding available (B) for this project. Funding for this project is included within
the approved capital budgets. The estimated surplus (D) will remain within the account to fund
future purchases.
T19-029
Domestic Natural Gas Meter Set: New Build Installation and Inspection
Services
Estimated Cost for this project
Tender T19-029 costs, including HST45,201.20
less: HST rebate(5,200.14)
Net Cost Being Awarded40,001.06 A
Projected Costs:
Total Estimated Cost $ 40,001.06 C
Budget for this project
New Gas Meter Sets50,000.00
Total Budget for this purchase$ 50,000.00 B
Estimated Surplus/(Deficit) for this Phase of
Work (B -C)9,998.94 D
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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