CITY OF VANCOUVER

ADMINISTRATIVE REPORT

 

Date:

November 24, 2003

 

Author:

Aby Sharma

 

Phone No.:

604-871-6059

 

RTS No.:

03769

 

CC File No.:

1805

 

Meeting Date:

January 15, 2004

TO:

Standing Committee on City Services and Budgets

FROM:

General Manager, Engineering Services

SUBJECT:

Award of Tender 2003-13 "Apartment Recycling Collection "

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

PURPOSE

The purpose of this report is to obtain Council's authorization to award Contract 2003-13: "Collection of Recyclable Materials from Multi-Family Buildings"

BACKGROUND

In April 1998, Council approved implementation of the Apartment Recycling Program (ARP), which included using private contractors and City crews. The City was divided into 5 areas, with private contractors servicing Areas I, II, III and IV. These areas consist of dense multi-family neighbourhoods and were selected to minimise recycling truck traffic. The contracted service area contains roughly 40% of all residential dwelling units in Vancouver.

In 1999, Tender 9900 - "Apartment Recycling Program" was issued and the contract was awarded to three private contractors to service Areas I, II, III and IV (shown in appendix A) for 5 year terms. This multiyear term allowed contractors to absorb the large capital and setup costs. The ARP has been a success and the companies who participated have been providing satisfactory service. The contracts expire on April 30, 2004 for Areas I & III and July 30, 2004 for Areas II & IV. The estimated current annual cost (2003) to service all four areas is $ 1,285,000.

Staff prepared the tender documents requesting bids for servicing the four areas for 1-year and 5-year terms. The tender was issued on October 6, 2003 and closed on November 5, 2003.

DISCUSSION

The collection contract for each area is a unit price contract and monies due to the Contractor will be settled on a monthly basis.

Tenderers had to bid for both the 1-yr and 5-yr term in any area for a valid bid. Bids were received from three different companies: International Paper Industries (IPI), Canadian Waste Services (CWS) and Urban Impact Recycling (UIR). These bids were evaluated and compared to each other as well as with the cost of servicing these areas using City of Vancouver forces. The competitive bids received from these companies are tabulated in Appendix B.

Based on the best value to the City, the proposed servicing arrangements with private contractors are tabulated below:

Areas

Company

# of units

Term

Annual cost

I

International Paper Industries

85,903

5-year

$ 560,000

II

        

III

        

IV

Reject all bids from private contractors

Based on our current operations and availability of equipment the estimated cost for City forces to service Areas I, II and III are higher than that of the low bid submitted by International Paper Industries.

During tender evaluation, staff have determined that Area IV can be serviced most cost effectively by City forces. Therefore staff recommends that the City reject all bids for Area IV.

FINANCIAL IMPLICATIONS

The existing contracts for the entire apartment recycling program (Areas I, II, III & IV) cost $1,285,000 per year.

Prior to tendering, staff had expected that the new prices bid in the ARP would be lower than the existing rates. These lower prices received during the tendering process reflect the competitive environment, lower risks, fewer unknowns and the significant reduction in the program setup costs as the buildings are already setup for receiving recycling service. The program savings resulting from the award of Areas I, II & III to IPI and the rejection of all bids for Area IV are reflected in the Solid Waste Utility fees submitted in the Utility fee report that was presented to Council during the week of December 1, 2003. The recommended contract with International Paper Industries for Areas I, II & III is valued at an estimated $ 560,000 per year.

CONCLUSION

The bids for Tender 2003-13, Collection of Recyclable Materials from Multi Family Buildings have been received and reviewed, and the General Manager of Engineering Services recommends awarding the contracts to International Paper Industries for a 5-year term for Areas I, II and III for an annual cost of $ 560,000 and reject all bids for Area IV.

- - - - -

APPENDIX A
PAGE 1 OF 1

CONTRACTED AREAS FOR APARTMENT RECYCLING PROGRAM

AREA

Description

Number of Suites

Number of Buildings

Proposed Contractor

I

Bounded by Stanley Park, English Bay, False Creek, Terminal Ave., Main St., Burrard Inlet and Coal Harbour

51,448

827

IPI

II

Bounded by Larch St., 4th Ave., Balsam St., 5th Ave., Vine St., Broadway, Burrard, 14th Ave., Firs St., 16th Ave., Marpole Ave., 15th Ave., Oak St., False Creek and English Bay

21,336

959

IPI

III

Bounded by Oak St., 16th Ave., Cambie St., 10th Ave., Ontario St., 16th Ave., Main St., 15th Ave., Prince Edward St., Kingsway, Broadway, Glen Dr., Terminal Ave. and False Creek

13,089

436

IPI

IV

Bounded by Main St., Terminal Ave., Glen Dr., Broadway, Commercial, Venables St., Victoria Dr., Hastings St., Nanaimo St. and Burrard Inlet

13,250

566

Reject all bids


IPI - International Paper Industries

APPENDIX B
PAGE 1 OF 1

Tender 2003-13 Prices

CANADIAN WASTE

 

 

1 Year term

5 Year Term

Areas

# of units

Annual Cost

Annual Cost

1

51,448

$418,786.72

$366,309.76

2

21,366

$179,474.40

$160,245.00

3

13,089

$142,015.65

$130,235.55

4

13,250

$151,050.00

$138,330.00

Alternative Bids

1,2,3,4

99,153

$845,775.09

$732,244.90

         

INTERNATIONAL PAPER INDUSTRIES LTD.

 

 

1 Year Term

5 Year Term

Areas

# of units

Annual Cost

Annual Cost

1

51,448

$649,788.24

$320,006.56

2

21,366

$320,276.34

$160,245.00

3

13,089

$162,565.38

$112,565.40

4

13,250

$177,815.00

$127,862.50

Alternative Bids

1,2,3,4

99,153

$1,199,751.30

$669,282.75

1,2,3

85,903

$928,611.43

$558,369.50

1,2,4

86,064

$963,916.80

$593,841.60

1,3,4

77,787

$914,775.12

$544,509.00

2,3,4

47,705

$555,763.25

$345,861.25

1,2

72,814

$843,186.12

$473,291.00

1,3

64,537

$802,194.91

$432,397.90

1,4

64,698

$817,782.72

$447,710.16

2,3

34,455

$304,926.75

$254,967.00

2,4

34,616

$337,506.00

$287,658.96

3,4

26,339

$247,586.60

$197,542.50

         

URBAN IMPACT RECYCLING

 

 

1 Year Term

5 Year Term

Areas

# of units

Annual Cost

Annual Cost

3

13,089

$157,068.00

$129,712.00

4

13,250

$225,250.00

$132,103.00

Alternative Bids

3,4

26,339

 

$236,761.00

Note: Values in bold represent the best cost to the City.

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