Vancouver City Council |
ADMINISTRATIVE REPORT
Date: May 26, 2003
Author/Local: T. Kyle/940-3203
RTS No. 03251
CC File No. 1805
Meeting Date: June 10, 2003
TO:
Vancouver City Council
FROM:
General Manager of Engineering Services
SUBJECT:
Landfill Gas System Expansion
RECOMMENDATIONS
A. THAT, subject to the conditions set out in Recommendations B and C, Council authorize the award of the landfill gas system expansion project to the low tenderer providing best value JJM Construction Ltd. in the amount of $805,000 plus GST (less any municipal rebate received) and PST, to be funded as part of a loan from the Solid Waste Capital Reserve with repayment by users of the landfill through the Burns Bog Rate, all as initially approved by Council on May 8, 2001.
B. THAT, subject to the conditions set out in Recommendation C, the General Manager of Engineering Services be authorized to execute and deliver the Notice of Award on behalf of the City, and the Director of Legal Services be authorized to execute and deliver the Form of Agreement on behalf of the City.
C. THAT no legal rights or obligations will arise or be created by Council's adoption of Recommendations A, B and C unless and until the Notice of Award has been (a) approved as to form by the Director of Legal Services and the General Manager of Engineering Services, and (b) executed and delivered by the General Manager of Engineering Services.
COUNCIL POLICY
On May 3, 1994, Council agreed to support the Regional Solid Waste Management Plan, which included requirements to upgrade the Vancouver Landfill.
Construction contract awards exceeding $300,000 must be made by Council.
PURPOSE
The purpose of this report is to seek Council's authority to award a contract for the construction of the Vancouver Landfill gas system expansion project to JJM Contracting Ltd.
BACKGROUND
As part of the City of Vancouver's solid waste management system, the Vancouver Landfill receives approximately 400,000 tonnes of municipal solid waste each year. Under the City of Vancouver's agreements with the municipality of Delta and the Greater Vancouver Regional District the Landfill is expected to operate until at least 2040. Future filling will be restricted to the existing landfill footprint and involve increasing the height of the Landfill.
Landfill gas (LFG) consisting primarily of methane and carbon dioxide, is a natural by-product of the landfill process. LFG is generated from the biological decomposition of organic wastes (food wastes, yard trimmings and paper) commencing a few months after deposition of the waste and for several decades following landfill closure. LFG is collected to prevent odours, reduce greenhouse gas emissions and to recover energy.
Under the Landfill's B.C. Ministry of Water, Land and Air Protection Operational Certificate (OC) Vancouver has an obligation to manage landfill gas from the Vancouver Landfill. Although beneficial use of LFG is not mandated, the OC specifies that if Vancouver does not make sufficient progress towards beneficial use, the Ministry of Water Land and Air Protection may mandate it.
On May 8, 2001, Council approved funding for the expansion of the landfill gas system at a cost of $1,750,000.
On January 23, 2002, Council approved an agreement with Maxim Power Corp. for the beneficial use of the LFG. The total greenhouse gas emission reductions associated with collecting and beneficially using LFG compared to venting is expected to be equivalent to approximately 230,000 tonnes of carbon dioxide per year, or the emissions of approximately 45,000 automobiles.
Council also approved on May 8, 2001 an engineering services agreement with Golder Associates for the design of the landfill gas collection system expansion project. The design work was completed earlier this year and the City then issued an invitation to tender on the work to construct the LFG system expansion project.
DISCUSSION
The invitation to tender closed on May 9, 2003. Three tenders were received ranging in price from $805,000 to $1,064,905 plus GST. The contract is based on unit pricing of estimated quantities.
The tenders were evaluated by Vancouver Landfill staff on the basis of price, and each tenderer's qualifications and experience. JJM Contracting Ltd. submitted the lowest price tender and has previous experience at the Vancouver Landfill having constructed the LFG expansion in 2000.
Based this evaluation, the General Manager of Engineering Services recommends JJM Contracting Ltd. be retained to perform this work.
FINANCIAL IMPLICATIONS
The total cost of the current phase of the LFG system expansion, including engineering and construction costs, is estimated at $1,750,000. This expenditure will be funded with a loan from the Solid Waste Capital Reserve with repayment by Landfill users through the Burns Bog Rate, as approved by Council on May 8, 2001.
ENVIRONMENTAL IMPACT
By expanding the Vancouver Landfill gas collection system the City will ensure that the Landfill will continue to meet environmental standards, and provide cost-effective management of municipal solid waste with minimal environmental impact.
CONCLUSION
Staff have conducted a public invitation to tender for this construction work followed by a thorough evaluation of the tenders received. The General Manager of Engineering Services recommends that Council authorize staff to retain JJM Contracting Ltd. to construct the LFG system expansion work.
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