Report to: General Committee- Report
Date:
Finance & Administration
SUBJECT: Contract Award for
Streetlight Maintenance and Repair 2007, PowerStream
PREPARED
BY: Steve
Andrews, Director, Asset Management
Alan
Laver, Manager, Utilities & Contracts
Kevin
Newson, Manager, Purchasing
RECOMMENDATION:
THAT PowerStream be authorized to
continue providing streetlight maintenance services for the Town;
AND THAT the tendering process be
waived in accordance with Purchasing By-Law 2004-341, Part II, Section 7 (1) C
which states “ when the extension of an existing contract would prove more
cost-effective or beneficial”;
AND THAT the 2007 Streetlight
Maintenance and Repair contract be awarded to the preferred vendor PowerStream
in the Amount of $ 637,763 (based on PowerStream’s estimate) exclusive of GST
to expire
AND THAT the 2007 Streetlight
Re-lamping Program contract be awarded to the preferred vendor PowerStream in
the Amount of $ 105,283 (based on PowerStream’s estimate) exclusive of GST to
expire
AND THAT funds be provided from
account # 720 720 5497 Streetlight Maintenance and Repair in the total amount
of $ 743,047 once funding is approved in the Town’s 2007 Operating Budget;
AND THAT the Town and PowerStream
continue to work together on an ongoing basis to review options to enhance
service delivery and cost efficiencies, share information, and exchange
inventory data;
AND FURTHER THAT Staff be
authorized and directed to do all things necessary to give effect to this
resolution.
EXECUTIVE
SUMMARY:
Not applicable
FINANCIAL
CONSIDERATIONS:
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The following table is a summary of
the financial considerations for this report: |
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|
|
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Proposed Budget and Account # |
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$838,058 |
|
720-720-5497 Light Maintenance and
Repair |
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Current Budget Proposed (unspent) |
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$838,058 |
|
|
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Less Cost |
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($743,047) |
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Award to PowerStream |
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Less Contingency |
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|
|
|
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Budget Remaining |
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$95,011 |
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1.
Purpose 2. Background 3. Discussion 4. Financial
5. Others (Environmental, Accessibility, Engage
21st, Affected Units) 6. Attachment(s)
PURPOSE:
To seek authorization for PowerStream
to continue providing service to the Town for streetlight maintenance, repairs,
and re-lamping of existing fixtures in 2007.
BACKGROUND:
The streetlight network is owned
by the Town of
In September of 2006, the Town
received a notice of termination from PowerStream advising the Town that they
wished to conclude the provision of streetlighting
services to the Town by
After receipt of this notice, staff
arranged to meet with PowerStream to plan for the transfer of the service to
the Town. At these meetings the Town was
advised that PowerStream was reviewing their options further with the
understanding that the OEB’s Affiliate Relationship Code requirement had the
flexibility to permit Powerstream to continue providing streetlighting
services.
PowerStream has agreed to
continue the services until these options were reviewed further and finalized. Options were discussed with the Town’s Asset
Management staff (See Options/ Discussion).
Currently there is an inventory
of approximately 21,000 streetlights within the Town boundaries. The Town’s streetlighting electrical supply
circuits in most cases are buried with PowerStream’s transmission lines and
connected directly to the hydro transformers.
Before repair work can be initiated on the streetlighting cables the
electrical supply must be disconnected by a certified linesman before the Town
can work on the system. All work must be
in accordance with the Electrical Safety Association (ESA) requirements.
The services provided by
PowerStream include repairs to damaged poles and fixtures, replacement of
burned out bulbs, ballasts, light sensors (based on residents’ requests to the
Contact Centre and outages reported by the Operation Department’s regular
patrolling), underground and overhead supply line repairs (burn outs), and
locating services for underground streetlight infrastructure. The services also include costs for the
yearly re-lamping and cleaning program where all lamps are replaced on a 5 year
rotation, for preventive maintenance (approx. 3000 units are scheduled for
re-lamping in 2007).
The Town also uses PowerStream to
design and construct additional streetlighting that are often requested by
residents; provide for the relocation of streetlights to accommodate road construction;
and provide for the replacement of streetlights that are worn out.
Funding for Streetlighting
Maintenance is contained in the proposed 2007
In February 2007, the Town
received an updated estimate from PowerStream (Attachment ‘A’) for 2007 which
is summarized as follows:
General Maintenance- $426,150
Streetlight Fault Repairs- $211,613
Re-Lamping- $105,283
Total- $743,047 (not including
hit& run)
PowerStream also estimates $ 40,952
for Hit and Runs Accident repairs. This item is covered by insurance through the
Clerk’s Department and is not funded through the Streetlight Maintenance
account.
PowerStream invoices their actual
costs monthly based on time and materials used for the required work.
OPTIONS/ DISCUSSION:
Since the fall of 2006, the Town
has been in discussion with PowerStream dealing with the review of streetlight
maintenance options. It was agreed that
the following options should be considered:
1.
The Town assume the complete streetlight
maintenance program from PowerStream.
This would require the full transfer of knowledge, design and
construction drawings, design standards, and inventory information to the
Town. It would necessitate the Town
tendering out all services now provided by PowerStream to a private contractors
or consultant and adding staff to the Asset Management Department to administer
the contract and provide inspection, design and technical expertise.
2.
PowerStream continue to provide the service
and work with the Town to set up contracts and services in such a manner the
Town can benefit from the knowledge and expertise of the PowerStream staff and
in a way that will facilitate the transfer of this expertise to the Town so
that the Town will be fully prepared for the assumption of the service in the
future is so desired. PowerStream will
assist to upgrade the Town’s maintenance
standards, design criteria, inventories and records for streetlighting. PowerStream has also initiated with the Town
to contract out the maintenance service in a modified manner that will like
provide improve service delivery and reduced costs to
The Asset Management Department
recommends Option 2 as the preferred option because of the following benefits:
PowerStream has:
·
many years local expertise in handling
these type of services,
·
design, administration, maintenance and
management staff are already in place with electrical expertise and existing processes,
·
Electrical Standards/Criteria and standard
construction practices are in place,
·
Locating services are in place to
handle contractor requests for location of existing streetlighting underground
services,
·
existing streetlighting infrastructure
records and drawing information,
·
an emergency response system is in
place to handle accident damage,
·
direct access to the integrated streetlighting/electrical
supply system to allow service repairs quickly.
In addition, PowerStream has agreed
to:
·
help the Town staff develop internal
expertise in streetlighting maintenance, convey streetlighting records and inventories
to the Town and review staffing requirements which would allow the Town to be
in a better position to take over these services if required in the future
·
improve the exchange of streetlighting
mapping/inventory,
·
review providing consultant services
for Capital Streetlight related projects,
·
upgrade
contract documents/unit prices for streetlighting to be able to use for
maintenance and capital projects,
·
review more efficient and cost
effective methods of service delivery that may provide improved service levels
and reduced costs
·
review savings related to contracted
services by PowerStream creating specific streetlighting unit price
requirements and inviting more specialized contractors to bid on streetlighting
services rather than using PowerStream’s power systems contractors as in the
past,
·
review possibilities for alternative
material replacement and inventory data updates as part of the re-lamping
program that forms part of the maintenance services,
For all the reason noted above,
it is recommended that PowerStream be authorized to continue providing
streetlight maintenance services for the Town;
FINANCIAL
TEMPLATE: (external link)
Attached
ENVIRONMENTAL
CONSIDERATIONS:
Not Applicable
ACCESSIBILITY
CONSIDERATIONS:
Not Applicable
ENGAGE
21ST CONSIDERATIONS:
Not Applicable
BUSINESS
UNITS CONSULTED AND AFFECTED:
Purchasing has been consulted and
their comments included.
RECOMMENDED
BY: __________________ __________________
Steve
Andrews Jim
Sales
Director,
Community
& Fire
Services
ATTACHMENTS:
Attached ‘A’ – PowerStream 2007
Estimate
Q:\Commission
Share\Operations and Asset Management\Reports\2007\Asset Management\Contracts
and Utilities\Contract award for streetlight maintenance and repair 2007 powerstream.doc