ADMINISTRATIVE REPORT

Date: February 27, 2001
Author/Local: Doug Manarin /

323-7793

RTS No. 01576

CC File No. 1805

Council: March 13, 2001

TO:	Vancouver City Council
FROM:	General Manager, Engineering Services Manager - Materials Management
SUBJECT:	Award of Request For Proposal No. PS00007: Supply and Installation of Automated Fuel Management System, Fuel Dispensing Equipment and Tank Upgrades

RECOMMENDATION

THAT Council accept the low bid meeting the City's requirements from Belco Electric Co. Ltd. for the supply and installation of the RNI 2000 fuel management system, fuel dispensing equipment and tank upgrades at a total cost of $646,818.41 ($376,634.33 for fuel pumps and fuel management system equipment, $218,670.00 for cardless vehicle hardware for an estimated 1500 units as and when required, $27,994.08 for control hardware and fuel truck controllers, and $23,520.00 for under pump containment sumps), plus the PST and the 7% GST (less any municipal rebate received), subject to a contract satisfactory to the Director of Legal Services.

CITY MANAGER'S COMMENTS

The City Manager RECOMMENDS approval of the foregoing.

POLICY

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

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

FINANCIAL IMPLICATIONS

Financial implications associated with the new system were discussed in the report approved by Council on February 20, 2001. The cost of the fuel system will be repaid over 5.8 years through savings achieved with the new cardless system.

On July 30, 1998, Council approved $300,000 in funding from the Capital Financing Fund (CFF) for the fuel management system. On February 20, 2001, Council approved $115,000 in funding from Park Board capital accounts and $50,000 in funding from the CFF for the fuel management system, $450,000 for cardless vehicle hardware and installation from the Plant Account, and $200,000 for environment upgrades from the CFF.

Funding for the purchase of the fuel management system will be from the fuel management system CFF loans ($330,000) and the Park Board capital accounts ($115,000). $26,000 will be drawn from the environmental upgrades CFF loan ($200,000) to provide for under pump containment sumps, and $241,000 will be drawn from the Plant Account for the purchase of the cardless vehicle hardware when and as required.

DISCUSSION

The City issued a Request for Proposals (RFP) for the supply and installation of an automated fuel management system for fuel dispensing equipment and tank upgrades that was advertised locally and nationally. Proposals were opened on April 12, 2000 and referred to the General Manager of Engineering Services and the Manager - Materials Management for report. The RFP included the supply and installation of fuel dispensers, cardlock-based fuel management system hardware and software, and upgrades to the vapour recovery systems at the Manitoba fuel station. A request was also made for the option of installing a cardless fuel management system. Six proposals were received: two cardlock system proposals, three cardless system proposals, and one incomplete non-compliant cardlock proposal.

On February 20, 2001, Council approved the funding and purchase of a cardless fuel management system. The final evaluations were based on the proposed cardless systems.

Proposals were evaluated by Purchasing and Equipment Services staff. The technical evaluation team evaluated the proposed systems, hardware, software, warranty and support, value added services, and conducted site visits and demonstrations of the proposed systems. The following table summarizes the evaluations results:

Proponent	Technical Evaluation Ranking	Cardless System Cost (Fuel Mgt System)	Cardless Vehicle Hardware (1500 units)	Total
Belco Electric Co. Ltd.	1st	$ 376,634.33	$ 218,670.00	$ 595,304.33
P.D. McLaren Ltd.	2nd	$ 385,338.70	$ 337,500.00	$ 722,838.70
Western Oil Services	3rd	$ 343,202.27	$ 308,325.00	$ 651.527.27

Belco Electric Co. Ltd. proposed the RNI2000 fuel management system. This system was demonstrated to the City at the Coast Mountain Bus Company (Translink) maintenance facility in Burnaby where the system has been in operation for approximately six years. The system consists of site hardware and software for the operation of the fuel station systems, and vehicle hardware for the operation of the cardless functionality. The system has the capability to track all fuel transactions for the City. The cost of the fuel station system will be $376,634.33. The required vehicle hardware, for an estimated 1500 units to be purchased as and when required for vehicle outfitting, will be approximately $218,670.00.

The Belco proposal included additional control hardware components that are needed for the fuel management system: seven (7) manual authorizers, one for each fuel station so that transactions can be manually authorized by the fuel attendants if required and two (2) vehicle programmers for setting up and adjusting the control units installed on the vehicles. The cost of these components is $6873.12. In addition, Belco also proposed a fuel truck authorizing system to be installed on the City's fuel trucks so that these transactions will be tracked with the new fuel management system. This would improve fuel tracking and enhance the fuelling operations of the City and staff recommend purchasing the fuel truck system for the two City fuel trucks at a cost of $21,120.96. The total cost of these additional components is $27,994.08.

To meet environmental regulations, under-pump containment sumps are required to be installed with the new fuel pump dispensers. Staff recommend that this be done by the successful proponent since it is integral to the installation of the new pumps. Therefore, staff recommend that Belco Electric Co. Ltd. be awarded the installation of containment sumps during the pump installation for $23,520.00.

Accordingly, we recommend acceptance of the low bid meeting the City's requirements from Belco Electric Co. Ltd. for the supply and installation of the RNI 2000 fuel management system, fuel dispensing equipment and tank upgrades.

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(c) 1998 City of Vancouver