HomeMy WebLinkAboutExpression of Interest - E05-085 - Advisory Services - Procurement & Management of Natural Gas SupplyDate: December 6d', 2005
To: Mayor Carl Zehr and Members of Council
Subject: E05-085 -Consultant Services -Advisory Services for the Procurement and
Management of Natural Gas Supply
RECOMMENDATION
That Expression of Interest E05-085, Consultant Services - Advisory Services for the
Procurement and Management of Natural Gas Supply, be awarded to ECNG Limited
Partnership, Burlington, Ontario at their estimated fee not to exceed $214,000., including G.S.T.,
for a three (3) year period commencing February l~r, 2006, with an option to renew for two (2)
additional one-year terms, based on a satisfactory contract being negotiated and an upset fee
being established, and further that the Mayor and City Clerk be authorized to execute an
agreement satisfactory to the City Solicitor.
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 D. Quinn, Director of Utilities, L. Baillargeon, Manager Asset Optimization, J. Gruenbauer,
Manager Regulatory Affairs, and L. Gordon, Director of Purchasing.
Expressions of interest were requested from nine (9) potential Consulting firms, as well as being
advertised in The Record, on the City of Kitchener Home Page and on the Internet through the
Ontario Public Buyers Electronic Tendering Information System relative to this project.
Documents were picked up by two (2) additional interested parties. By the closing date of
Monday October 31~r, 2005, seven (7) responses had been received. The Review Committee met
on Tuesday November 8d', 2005 and decided to interview three (3) of the respondents.
The Review Committee met on Tuesday November 22nd, 2005 to interview the shortlisted
candidates. The Committee elected to award the project to ECNG Limited Partnership,
Burlington, Ontario.
A listing of the responding parties follows for your reference.
Power Stream Energy Services Inc., Toronto
Energy Advantage Inc., Burlington
B.E. Nickerson Enterprises, Fergus
Jason F. Stacey, Oakville
Aegent Energy Advisors Inc., Toronto
ECNG Limited Partnership, Burlington
Comsatec Inc., Etobicoke
In 1998, when Kitchener Utilities recommended that it should be more proactive in the
purchasing of natural gas and the management of its upstream contracts, it recognized that it
would benefit from the assistance and advice of energy management experts to manage the
complexities of the market. Since that time, the market has increased in complexity and yet,
with the benefit of solid advice from ECNG, Kitchener Utilities has saved its customers tens of
millions of dollars in commodity costs alone.
FINANCIAL IMPLICATIONS
Funding will be provided from indices:
874030 -Gas Delivery/Admin/Sales Revenue and
875030 -Gas Supply/Admin/Sales Revenue
* There will be a 10% price increase over the previous contract.
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Larry Gordon
Director of Purchasing