ADMINISTRATIVE REPORT

Date: March 13, 2001
Author/Local: C.Wyatt/7254

RTS No. 01964

CC File No. 3756

Council: April 24, 2001

TO:	Vancouver City Council
FROM:	General Manager of Corporate Services
SUBJECT:	Co-operative Purchasing of the Supply and Collection of Garbage Containers

RECOMMENDATION

A. THAT Council authorize the Manager, Materials Management, to include the City of Vancouver's garbage container servicing requirements in the Vancouver Regional Co-operative Purchasing Group's ("VRCPG") tender for the supply and collection of garbage containers.

B. THAT Council authorize the Manager, Materials Management, on behalf of the City of Vancouver, to accept the contract recommendation of the VRCPG that provides the lowest overall cost to the City .

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.

On March 4, 1980, City Council authorized co-operative purchasing "when benefits to the City are indicated".

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

PURPOSE

The purpose of this report is to obtain Council's approval for the City to participate in the VRCPG's tender and resulting contract for the supply and collection of garbage containers.

BACKGROUND

In January, 1998, the City of Vancouver sold the assets of the City's containerized garbage collection service. City Services and Budgets Policy Report dated October 27, 1997 to the Standing Committee of City Services and Budgets refers to this sale.

To minimize the disruption that the City's discontinuance of services would cause, the terms and conditions of sale required the successful bidder, Superior Disposal, to take over the existing service contracts and containers. Consequently, Superior Disposal has supplied and collected garbage containers at 41 City owned buildings since acquiring the business. No tender call has been issued for this service since Superior Disposal purchased the City's business.

DISCUSSION

The VRCPG continually seeks opportunities to reduce costs and improve quality of service for its 21 member municipalities. Recently, the group has been focussing its efforts on potential opportunities in the service area such as commercial site garbage collections.

The City of Vancouver currently spends approximately $200,000 annually renting and servicing the garbage containers for 41 different locations.

Given the interest expressed by a number of VRCPG members in a co-operative purchase of garbage collection services, a tender was prepared and will be issued early April. The tender covers the supply and collection of garbage containers for a three year period with the option to extend for two 12 month periods. The tender terms permit splitting the award between two or more vendors if it is in the best interest of the participating municipalities to do so. The Greater Vancouver Regional District's ("GVRD") legal department reviewed the tender contract on behalf of the VRCPG.

The GVRD, the City of Richmond, the City of Surrey, the District of West Vancouver and the City of Surrey are participating in the tender. Including the 41 locations belonging to the City of Vancouver, the tender will cover 237 container locations.

If the City of Vancouver tendered for its own requirements only, it is probable that the costs will be higher due to the limited number of sites requiring servicing.

FINANCIAL IMPLICATIONS

Funds will be provided for in the Operating Budget.

CONCLUSION

In order to maximize the City's leverage and obtain the lowest garbage container rental rates and lowest servicing costs possible, it needs to increase the potential value of the contract. This can be achieved by participating in the VRCPG co-operative tender and resulting contract. Therefore, it is recommended that Council authorize the Manager, Materials Management to participate in the VRCPG's co-operative tender and resulting contract.

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(c) 1998 City of Vancouver