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HomeMy WebLinkAboutFIN-08-089 - T08-046 - Domestic Natural Gas Meter Replacement Programi~'; ~ ~~t~ i .~ Report To: Mayor Carl Zehr and Members of Council Date of Meeting: 2008-08-18 Submitted By: Larry Gordon Prepared By: Larry Gordon Date of Report: 2008-08-12 Report No: FIN 08-089 Subject: T08-046 -Domestic Natural Gas Meter Replacement Program RECOMMENDATION That tender T08-046, Domestic Natural Gas Meter Replacement Program, be awarded to Lakeside Performance Gas Services Ltd., Brampton, Ontario at their tendered price of $255,780., including G.S.T., with an option to extend the contract for one (1 } ninety (90} day period, subject to mutual agreement. BACKGROUND Natural gas meter replacements is part of an on-going infrastructure renewal program. Kitchener Utilities has identified the immediate need to replace 4,200 aging domestic natural gas meters. REPORT Tenders were advertised publicly in The Record, on the City of Kitchener website and the Ontario Public Buyers Electronic Tendering Information System. By the closing date of Thursday May 1St, 2008, two (2} tenders had been received. The following tenders were received: Total Bid Price Lakeside Performance Gas Services Ltd. Oakville, ON $255,780. Aires Cooling & Heating Richmond Hill, ON $343,980. The tenders were reviewed by B. Nash, Manager of Customer Relations, and S. Rudak, Buyer, who concur with the above recommendation. FINANCIAL IMPLICATIONS Funding will be provided from index 876029 -Cap/New Small Meter Replacement REVENUE Balance as of August 12, 2008 $142,768.80 Additional Revenue Projected $ 14,000.00 TOTAL $156,768.80 EXPENSES T08-046 $255, 780. Less G.S.T. Rebate ($ 12,180.) $243, 600. $243, 600.00 Encumbrances $ 25,095.47 Projected Expenses (unencumbered} $100,000.00 TOTAL $368, 695.47 Deficit $211,926.67 * This is a general provision account and the shortfall will be covered off with the 2009 budget allocation. Larry Gordon Director of Purchasing Purchasing Tender -Domestic NG Meter Replacement Funded from Index 876029 -Cap/New Small Meter Replacement Funding Sources Current Balance 876029, as at August 12, 2008 142,768.80 Additional Revenue Projected 14,000.00 Total Revenue Projected 156,768.80 Projected Expenditures Tender Request (T08-046} 243,600.00 Existing Encumbrances 25,095.47 Projected Expenses (unencumbered) 100,000.00 Total Expenditures Projected 368,695.47 Projected Deficit (211,926.6 INote: All amounts above are net of GST. C:1Documents and SettingsllindaklLocal SettingslTemporary Internet Filesl0LKB31Financial Information for 8/14/2008 Recommendation (5).xls August 08