ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services

SUBJECT:

Award of Tender - Material Transfer Yard Construction, Kent Yard

 

RECOMMENDATION

COUNCIL POLICY

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

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

PURPOSE

This report seeks authorization to award a contract for construction of the material transfer facility at the Kent Avenue Yard.

BACKGROUND

· On June 13, 2002, Council approved development of a material transfer facility to handle excavation material from the City's construction sites.
· On June 13, 2002, funding was approved as a loan from the Capital Financing Fund to be repaid from operating savings of a positive business case for the operation.
· The material transfer facility takes excavation material from City water, sewer and streets maintenance and construction operations throughout Vancouver and transfers the material into larger more efficient vehicles for delivery to the landfill.

DISCUSSION

This report recommends award of the construction contract for the facility. This contract covers site preparation, drainage, fencing, lighting and the supply and installation of weigh scales. From a public invitation for expression of interest, 5 contractors were pre-qualified for this tender.

Bids closed on July 8, 2003 . The following complete bids were received:

Gemco Construction Ltd.

$542,521.00

Sandpiper Contracting Ltd.

$609,075.00

Conwest Contracting Ltd.

$727,834.30

The consulting engineer's estimate for this work is $516,000.00. The low bid is above the engineer's estimate but within the budget for the project. On the basis of best value, it is recommended that the material transfer construction contract be awarded to Gemco Construction Ltd., the low bidder, in the amount of $542,521.00, including PST and GST. All tenderers have been notified of these recommendations.

FINANCIAL IMPLICATIONS

The overall budget approved for this project is $789,000. This tender is within the budget for the project. Funding for the project was approved as a Capital Financing Fund Loan on June 13, 2002. Funding for this tender which totals $542,521.00 is available in account number 30005945 in order group CA3EFA.

SUSTAINABILITY

This facility incorporates a number of sustainable features:

· The facility transfers excavation material to larger trucks for the long haul portion of the trip, resulting in fewer trucks on the road and reduced traffic congestion and pollution.
· Asphalt and concrete slabs are stockpiled and crushed for reuse as an aggregate fill material.
· Site storm water runoff will be directed through the existing settlement pond on site to reduce any fine silts reaching the river.

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