ADMINISTRATIVE REPORT

Date: March 13, 2000
Author/Local: R. Chan/323-7792
RTS No. 01352

CC File No. 5103

Council: March 28, 2000

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Purchase of Landfill Loader

RECOMMENDATION

THAT Council direct the tendering procedure be waived and that Wajax Equipment be awarded a contract for the supply of one Volvo model L180C loader at a total estimated cost of $235,323.01 plus the Provincial Sales Tax, the Provincial Environment Levy and the applicable Goods and Services Tax.

POLICY

It is Council policy to issue a tender or RFP for contracts in excess of $100,000.

PURPOSE

The purpose of this report is to request authority from Council to purchase a front-end loader that has been rented by the City over the last year and consequently to waive the tendering procedure.

BACKGROUND

In February of 1999, the composting facility of the Landfill rented a loader to handle large volumes of compost associated with the Hastings Park Project. During the summer, several other large Park Board projects took place which necessitated extending the rental. In addition, 1999 saw a large increase in incoming yard and garden waste and consequently the rented loader was retained for all of 1999.

On December 16, 1999, Council approved the purchase of a front-end loader as part of the improvements to the compost facility at the Vancouver Landfill with funds from the Solid Waste Capital Reserve.

DISCUSSION

The loader was rented from Wajax Equipment who has agreed to apply 100% of the rentals less interest costs to the purchase cost of the loader. Wajax has also obtained an additional municipal concession from the manufacturer of $11,250.

To the end of January 2000, payments totaling $159,500 have been made. Based on an initial price of $375,000, the buyout for this unit as of the end of February is $235,323.01. This figure will be adjusted to the actual transaction date as required.

The purchase cost of a similar used machine (if available) is estimated at $275,000 to $325,000. The equipment operators and the equipment services maintenance people have been satisfied with this rental unit both operationally and mechanically.

Given the favourable pricing of this loader and the fact that the rental would have to continue if a tendered purchase was required, it is recommended that the City waive tendering on this machine and proceed with a directed purchase of the Volvo loader.

* * * * *

(c) 1998 City of Vancouver