ADMINISTRATIVE REPORT

Date: October 22, 2002
Author/Local: P. Kemp/7257

RTS No. 03029

CC File No. 1805

Council: November 5, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager, Materials Management
SUBJECT:	Award of Tender PS02024 - Processing of Landfill Cover Material and Ancillary Services

RECOMMENDATION

That Council accept the low bid offering best value to the City from Poschner Construction (88) Ltd. for the Processing of Landfill Cover Material and Ancillary Services for a two (2) year period from date of purchase order, with the option for three (3) additional one (1) year terms, at an estimated cost of $1,771,998. plus the 7% GST (less any municipal rebate received) and PST (where applicable), subject to a contract satisfactory to the Director of Legal Services, with the source of funds to be from the Vancouver Landfill operating budget with offset.

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.

BACKGROUND

The City owns and operates a 635 hectare municipal solid waste landfill in Delta. A critical component of the operation is the need for a continuous supply of Cover Material to cover the refuse on a daily basis. Cover material is primarily waste excavation material from sewer, water and street construction that is delivered to the Landfill. The Contractor stockpiles the excavation material and separates oversized rubble from the soil. The contractor then transports both soil and the rubble to various sites within the Landfill. The contract for cover material also provides for fire protection services, contingency pumping and ancillary services, such as the rental of the contractor's on site equipment, with and without operator, to supplement City forces at the Landfill during peak periods or special projects.

DISCUSSION

Tenders for the above were opened on August 21, 2002 and referred to the General Manager of Engineering Services and the Manager of Materials Management for report. The PST (where applicable), and the 7% GST (less any municipal rebate received) are in addition to the pricing shown in this report.

This tender called for pricing for stockpiling of Excavation Material and Other Cover Material within the Stockpiling Area, removal of Rubble from the Excavation Material within the Stockpiling area, and transportation of Processed Material, Rubble and Other Cover Material from the Stockpiling Area to other areas in the Landfill. This tender was advertised in a local newspaper as well as on the internet.

Three bids were received with estimated prices ranging from$1,771,998 to $2,187,500 for the initial two (2) year period.

		Bid No. 1	Bid No. 2	Bid No. 3
	Est. Annual Qty.	Poschner Construction	Delta Aggregates	JJM
Processed Excavation	90,000 (cubic metres/year)	$420,300	$427,500	$405,000
Other Cover	5,000 (cubic metres/year)	23,350	23,750	22,500
Rubble	9,000 (cubic metres/year)	41,850	42,750	40,500
Fire Protection	24 hr/365 day	38,000	33,000	132,000
Contingency Pumping	24 hr/365 day	6,000	25,000	12,000
Ancillary Services		356,499	451,375	481,750
	Annual	$885,999	$1,003,375	$1,093,750
	Total 2 Year	$1,771,998	$2,006,750	$2,187,500

Ancillary Services includes 2500 hours of excavator time, pads, brush grapples, haul truck, water trucks, construction, fabrication and labouring.

The contract is for a two (2) year period, with up to three (3) additional one (1) year periods by mutual agreement between the City of Vancouver and the Contractor. Prices shall remain firm for the duration of the first twelve (12) month period. For each subsequent 12 month period, all prices will be adjusted by the change in the Consumer's Price Index for all items published by Statistics Canada for the Vancouver area.

Bid No. 1 from Poschner Construction (88) Ltd. meets the City's requirements,
is acceptable and recommended.

FINANCIAL IMPLICATIONS

The prices provided in the Poschner Construction's tender are for all intents and purpose identical to prices currently being paid for these services. Therefore, entering into a Contract with Poschner Construction will not impact the Landfill operating budget and consequently will not impact the solid Waste Utility budget. The operations provided for in this tender are a necessity for the operation of the Landfill and are currently performed by an on site contractor. Funding for these services are provided for in the Vancouver Landfill operating budget.

CONCLUSION

Accordingly, we recommend acceptance of the low bid meeting the City's requirements and offering best value from Poschner Construction (88) Ltd. for the Processing of Landfill Cover Material and Ancillary Services for a two (2) year period, at an estimated cost of $1,771,998.

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(c) 1998 City of Vancouver