ADMINISTRATIVE REPORT

Date: July 16, 2002
Author/Local: E. Batty/7315

RTS NO. 2799

CC File No. 1805

Council: July 30, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Tender No. 2002-09: Rubble Hauling and Crushing - 900 East Kent Avenue Works Yard

RECOMMENDATION

A. THAT Council approve award of Contract No. 2002-09 for Rubble Hauling and Crushing - 900 East Kent Avenue Works Yard to the low tenderer, Mainland Demo Contracting Ltd., in the amount of $1,092,830 including applicable taxes, with funding provided through dumping charge revenue at the 900 East Kent Works Yard site,

B. THAT the General Manager of Engineering Services be authorized to execute and deliver a Notice of Award on behalf of the City, and the Director of Legal Services be authorized to execute and deliver Contract No. 2002-09 on behalf of the City, and

C. THAT no legal rights or obligations will be created or arise by Council's approval of Recommendations A and B unless and until a Notice of Award is executed and delivered by the City to Mainland Demo Contracting Ltd.

COUNCIL POLICY

Construction contracts over $300,000 are to be awarded by Council.

PURPOSE

The purpose of this report is to obtain Council approval to award Tender No. 2002-09 for the hauling of excavated material obtained from Engineering Services construction work to landfill sites, and for the crushing and transport of asphalt and concrete slab rubble.

BACKGROUND

Engineering Services has, for the past several years, been reviewing its methods of handling excavated material from its many construction sites throughout Vancouver. Annually, Engineering Services hauls more than 380,000 tonnes of excavated material to the Delta and Richmond landfills. Our review of how to best haul the material to the landfill sites compared the practice of hauling directly from the work sites to the landfill with the option of hauling to a transfer facility and from there to the landfill using larger vehicles.

On May 17, 2001 Council approved the award of a contract to Columbia Bitulithic Ltd. for the hauling and crushing of excavated material from a temporary material transfer facility at 900 East Kent Avenue. This allowed for further review of the hauling of material through a transfer facility and completion of a business case for the operation. The business case was completed and its recommendation to proceed with a permanent transfer facility for excavated material was approved by Council on June 13, 2002.

The benefits of using a material transfer facility compared to delivering the material directly from the job site to landfills are:
· costs savings of approximately $195,000 annually
· reduced traffic congestion and pollution
· greater potential for reusing and recycling material
· greater potential for making use of a variety of destination sites for excavated material
· improved work site efficiency with the variability of highway trucking travel times removed from the work site consideration

The design and construction of the permanent Material Transfer Facility is underway. The award of Tender 2002-09 will allow for the continued hauling and crushing of material both during and after construction of the permanent facility.

DISCUSSION

Tenders for rubble hauling and crushing at the 900 East Kent Avenue Works Yard (Tender No. 2002-09) were opened on July 10, 2002 and referred to the General Manager of Engineering Services. The term of the contract will be 12 months with two additional 12 month extensions subject to mutual agreement between the City and Contractor.

The tender was advertised in local newspapers as well as the internet. Eight tender packages were picked up and five tenders were submitted.

All tenders were checked for completeness and accuracy. Tabulations of the amounts bid, with the lowest compliant bid underlined, are shown below:

Mainland Demo Contracting	$1,092,830
G & R Singh & Sons	$1,146,596
Westrock Custom Breaking	$1,234,146
Delta Aggregates	$1,430,052
Columbia Bitulithic	$1,457,450

The tenders included:
· hauling general rubble to the Delta Landfill or Contractor designated sites, and
· crushing asphalt and concrete slab rubble at the 900 E. Kent site, and loading and transporting same to the Delta Landfill for use in road construction.

FINANCIAL IMPLICATIONS

The total estimated cost of this contract is $ 1,092,830 and will be funded from existing Operating, Capital and Utility budgets by internal user fees from a dumping charge applied to excavated material brought to the 900 East Kent site. The unit rates bid are consistent with those estimated in the business case approved by Council on June 13, 2002 and thus we expect that the projected saving of $195,000 annually will be met.

The excavated material originates from Waterworks, Sewers and Streets capital and maintenance work. Therefore, the dumping fees are funded from a variety of sources such as the Streets and Sewers Operating Budget, the Streets, Waterworks and Sewers Basic Capital Budget, Water Utility Fees and Sewer Utility Fees. In addition, the Delta Landfill Operating Budget will purchase the crushed material delivered there and used for road construction.

ENVIRONMENTAL IMPLICATIONS

The services to be provided under this contract are an integral part of the Material Transfer Facility which provides reduced pollution and fuel use benefits from the more efficient hauling of rubble material. Further environmental benefits arise from the ability to recycle some of the rubble material.

CONCLUSION

The low bid as submitted has been reviewed and is acceptable. The unit rates quoted are within the estimated rates for a successful business case. This contract will allow Engineering Services to proceed with the operation of the Material Transfer Facility previously approved by Council. Therefore, staff recommend that Contract 2002-09 be awarded to the low bidder Mainland Demo Contracting Ltd.

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(c) 1998 City of Vancouver