HomeMy WebLinkAboutFIN-09-117 - T09-074 - Domestic Natural Gas Meter Replacement ProgramKPT1<'~F~F.N'R~
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REPORT TO: Mayor Carl Zehr & Members of Council
DATE OF MEETING: 2009-09-21
SUBMITTED BY: Larry Gordon, Chief Purchasing Officer
PREPARED BY: Larry Gordon, Chief Purchasing Officer (2214)
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2009-09-14
REPORT NO: FIN 09-117
SUBJECT: T09-074 -Domestic Natural Gas Meter Replacement Program
RECOMMENDATION:
That tender T09-074, Domestic Natural Gas Meter Replacement Program, be awarded to:
Lakeside Performance Gas Services Limited, Mississauga at their tendered price of $208,719.,
including G.S.T., with an option to extend the contract for two (2) additional one (1) year
periods, subject to mutual agreement.
BACKGROUND:
Natural gas meter replacements is part of an on-going infrastructure renewal program and
Kitchener Utilities, through Measurement Canada, has identified the immediate need for the
replacement of three thousand (3,000) aged domestic natural gas meters.
REPORT:
Tenders were advertised publicly in The Record, on the City of Kitchener website and the
Internet through the Ontario Public Buyers Electronic Tendering Information System. Four (4)
potential bidders downloaded tender documents, and by the closing date of Thursday August
13th, 2009, two (2) tenders had been received.
The following tenders were received
TOTAL BID PRICE
4 Seasons Heating & Cooling Waterloo ON $182,700.
Lakeside Performance Gas Services Mississauga ON $208,719.
ii) - 1
A meeting was held with 4 Seasons Heating & Cooling on August 25th, 2009 and as a result, it
was determined that their company was unable to complete the work outlined in their tender and
their tender was withdrawn.
B. Nash, Manager of Customer Relations, and S. Rudak, Buyer, concur with the above
recommendation.
FINANCIAL IMPLICATIONS:
Funding will be provided from Work Orders 56000207 -New Small Meter Set Replacements,
56000208 -New Small Meter Set Installations and 131 -New Installations -Gas Meters
Financial Report is attached.
* The Deficit will be recovered in 2010
ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services and City
Treasurer
ii)-2
NATURAL GAS METERS - T09-074
Financial Summary as of September 14, 2009
Existing Funding
Current Balance (56000207 -New Small
Meter Set Replacements) (265,584.06)
Current Balance (56000208 -New Small
Meter Set Installations) (382,235.95)
Current Balance (131 -New Installations
Gas Meters) 253,492.97
Additional Revenue Projected -
Total Funding/(Deficit) (265,584.06)
Projected Expenditures
Tender Request 198,780.00
Existing Encumbrances 23,985.05
Projected Expenses (Unencumbered) -
Total Expenditures Projected 222,765.05
Projected Deficit (488,349.11)
Note: All amounts above are net of GST rebates.
Deficit to be recovered in 2010.
ii) - 3