Finance & Administrative Committee

 

 

 

 

 

TO:

Mayor and Members of Council

 

 

 

 

FROM:

Stan Bertoia, General Manager, Construction & Utilities

 

 

 

 

PREPARED BY:

Alan Laver, Manager, Contracts & Utilities

 

 

 

 

DATE OF MEETING:

March 22, 2004

 

 

 

 

SUBJECT:

Street Light Hydro and Maintenance - 2003 Blanket Purchase Order Increase

 

 

 

 

RECOMMENDATION:

That the report entitled, “Street Light Hydro and Maintenance – 2003 Blanket Purchase Order Increase” be received;

 

And that the Blanket Purchase Order B2-46 for Markham Hydro be increased by $141,876.49 inclusive of 7% GST ($136,573.19 inclusive of 3% GST) for the period ending December 31, 2003;

 

And that funds for the increase be paid for out of the Construction and Utilities Division’s 2003 & 2004 Operating Budget Account # 720-720-5930 for Street Light Hydro and Account # 720-720-5497 for Street Light Maintenance;

 

 

PURPOSE:

The purpose of this report is to increase the upset limit of Blanket Purchase Order B2-46 for the payment of outstanding invoices from Markham Hydro for street light hydro and street light maintenance costs incurred to December 2003.

 

 

BACKGROUND:

In October 2002, a blanket purchase order was issued to Markham Hydro for the 2003 street light hydro and street light maintenance. The blanket purchase order was based on the 2002 budget figures and was not increased once the 2003 budget was approved. The actual billing received from Markham Hydro for street light hydro and street light maintenance costs has exceeded the blanket purchase order that was set up in October 2002.

 

In accordance with Purchasing By-Law 143-2000, a purchase order overrun in excess of $50,000 and greater than approved budget values requires approval from the Finance and Administrative Committee.

The existing Blanket Purchase Order B2-46 for 2003 covers expenditures for both street light hydro and street light maintenance in two accounts:

Account  720-720-5930    Street Light Hydro

Account  720-720-5497    Street Light Maintenance

 

At the end of 2003, estimated expenses for outstanding invoices in these two street light accounts totalled $144,500 inclusive of 3% GST and an accrual was booked (as the actual expenses were not known at that time). 

 

As of February 24th, 2004, there are three Markham Hydro invoices related to 2003 pending payment for a total of  $169,498.03 inclusive of 7% GST ($163,161.66 inclusive of 3% GST). In order to process the payments, Blanket Purchase Order B2-46 requires an increase of $141,876.49 inclusive of 7% GST ($136,573.19 inclusive of 3% GST).

 

The blanket purchase order for street light maintenance for 2004 will be based on the 2004 budget. The amount included for street light maintenance has been increased to $410,000 to reflect the increased costs.

 

 

FINANCIAL CONSIDERATIONS:

Staff recommend that Blanket Purchase Order B2-46 for Markham Hydro be increased by $141,876.49 inclusive of 7% GST ($136,573.19 inclusive of 3% GST) for the period ending December 31, 2003.

 

Funds for the increase will be paid for out of  the Construction and Utilities Division’s 2003 & 2004 Operating Budget Account # 720-720-5930 for Street Light Hydro and Account # 720-720-5497 for Street Light Maintenance.

 

 

 

 

______________________________                        __________________________________________

Stan Bertoia,                                                                Peter Loukes,                                      

General Manager, Construction & Utilities                     Director of Operations &Asset Management

 

 

           

 

 

______________________________                       

Jim Sales,                                            

Commissioner of Community & Fire Services

 

 

Q:\Envsrv\ADMIN\Mgr of Admin & CS\REPORTS\Markham Hydro Blanket PO Increase Report.doc