Jan. 11, 2008

Mr. Alan Laver

Town Of Markham

101 Town Centre Boulevard

Markham, Ontario

L3R 9W3

 

Subject: 2008 Streetlight Maintenance & Re-lamping

 

Dear Alan

 

At your request, we are providing the proposed costing for streetlight maintenance and re-lamping program for the Town of Markham. It should be quoted for the amount noted plus GST.

 

In 2007 PowerStream Inc. selected a new service provider to perform street lighting services in the Town of Markham. This was effective Sept 15, 2007 and is scheduled to remain in effect until June 30, 2009.

 

The estimated cost for 2008 general streetlight maintenance (excluding re-lamping and hit & runs) is $381,430.00. This value includes the approximate number of lights repaired annually using a unit price per fixture(*) and others that are repaired at a time & material cost and ESA annual fees.

 

The estimated cost to re-lamp 4,000 units is $143,982.80 plus GST.

 

Costs associated with accident (hit & run) and vandalism is estimated to be $65,000.00 for 2008.

 

The repair costs for underground streetlight fault has been averaged over the past several years and for 2008 it is estimated at $210,000.00. This estimate will vary with the actual number of faults that may occur.

 

If you find this information to be acceptable please forward 2 separate Purchase Orders to cover the following expenses.

 

1)                  General Street light maintenance                                    - $381,430.00

+ hit and runs                                                               - $  65,000.00

+ U/G faults                                                                  - $210,000.00

                                                            Total                 $656,430.00

                                                            Plus GST

 

2)                  Re-lamping program                             Total               - $143,982.80                                                                         Plus GST

 

Please note that the costs provided in this letter are estimates only and actual costs will depend on the actual events that occur in 2008 and other pending considerations.

 

This estimate does not include additional costs associated with planned replacement of equipment.

 

Should you have any question regarding this information please contact me at 905-417- 6984.

 

 

Yours truly,

 

Leo McGinty

Manager, Lines Maintenance

PowerStream

 

 

 

 

(*) Previous to the recent contract award, repair costs were charged at a time and material rate. There is an estimated savings of 11% using a per unit rate.

 

 

 

 

 

 

 

 

 

 

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