ADMINISTRATIVE REPORT

Date: April 24, 1998

Author/Local: S.Siu/7258

CC File: 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager of Purchasing Services
SUBJECT:	Contract Extension - Contract No. 39-96-05 the Supply of Refuse Recycling Trucks

RECOMMENDATION

THAT Council approve the extension of the contract to Rollins Machinery Ltd. for sixteen (12 replacement and 4 additional) Mack MS-300P Chassis with LaBrie Top Select bodies, refuse recycling trucks at a total additional cost of $2,144,512, plus 7% Goods and Services Tax (less any municipal rebate received), the Provincial Sales Tax and the Provincial Environmental Levy.

COUNCIL POLICY

The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the highest value based on quality, service and price.

Contracts with a value over $300,000 are referred to Council for award.

DISCUSSION

On December 10, 1996, City Council awarded a contract to Rollins Machinery Ltd., for the supply of eleven (11) refuse recycling trucks at a total cost of $1,312,344 plus the 7% Goods and Services Tax (less any municipal rebate received), the Provincial Sales Tax and the Provincial Environmental Levy. Our experience with these trucks has been satisfactory.

The eleven (11) units were purchased as replacements for part of the City’s total fleet of twenty-five (25) residential recycling trucks. Twelve (12) of the remaining fourteen (14) trucks have reached the end of their economic life and are to be replaced in 1998. Four (4) additional trucks are required for apartment recycle service, as approved by City Council on April 28, 1998.

Funds will be provided from the Truck and Equipment Plant Account for replacement trucks and the Solid Waste Capital Reserve for additional trucks for the apartment recycling program.

The contract provides for an extension to purchase up to fifteen (15) additional refuse recycling trucks by mutual agreement between the City and the contractor. Rollins Machinery Ltd. has agreed to extend the contract for a further sixteen (16) units for an additional 8% from the previous purchased price. Contributing factors to the price increase over the two year period (from the original tender opening date to the anticipated delivery date of the additional trucks) are, 1.6% for the new 1998 Environmental Protection Agency (EPA) gaseous emissions regulations which require new engines to meet more stringent requirements, 2.0% for the difference in US exchange rate and 4.4% for labour, cost of material and minor local modifications.

After delivery of the first eleven trucks, we have identified two essential items for our operational needs. The first item is an upgrade of the trucks’ reversing beeper warning system to enhance reversing safety in back alleys. The second item is an upgrade of the service accessibility to the trucks’ engine area for routine inspection and periodic servicing. We require a hydraulic assist to raise the converted tilt cab. These upgrades only became apparent after we used the first group of trucks, and are most economically installed by the supplier at the time of manufacture, rather than having our Shops modify the completed truck.

In addition, the optional dual-side loading body is required for three of the twelve replacement trucks. These three units are also used as training vehicles which require this option.

All other terms and conditions would remain the same.

Considering that Rollins Machinery Ltd. has been a satisfactory supplier and the price increase is reasonable, we RECOMMEND that this contract be extended for sixteen (12 replacement plus 4 additional) Mack MS-300P chassis with LaBrie Top Select bodies, refuse recycling trucks at a total cost of $2,144,512,($128,895 each plus $841.51 each for Eye-Max ultrasonic anti-collision warning system plus $2,983 each for hydraulic assist cab tilt plus $7,000 each for three optional dual-side loading bodies, plus two (2) year warranty on LaBrie Top Select bodies at no extra charge), plus the 7% Goods and Services Tax (less any municipal rebate received), the Provincial Sales Tax and the Provincial Environmental Levy.

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(c) 1998 City of Vancouver