|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
November 30, 2004 | |
Author: |
Bob McLennan | |
Phone No.: |
604.873.7239 | |
RTS No.: |
04706 | |
CC File No.: |
1805 | |
Meeting Date: |
December 14, 2004 |
TO: |
Vancouver City Council |
FROM: |
General Manager of Engineering Services
|
SUBJECT: |
Authority to Contract with Toter Incorporated - RFP 04099 Supply and Delivery of Refuse Containers for Automated Collection |
RECOMMENDATION
A. THAT, subject to the conditions set out in Recommendations B, C, and D, Council authorize a contract with Toter Incorporated for the supply and delivery of approximately 174,000 wheeled containers for Automated Collection of Garbage and Yard Trimmings, at an estimated cost of $7,165,000.00 USD plus the Provincial Sales Tax and the Goods and Services Tax (less any municipal rebate received). The final cost of the contract will depend on the final distribution of container sizes selected by users. Source of funding to be the Solid Waste Capital Reserve.
B. THAT, the Director of Legal Services be authorized to execute and deliver on behalf of the City all legal documents required to implement Recommendation A.
C. THAT all such legal documents be on terms and conditions satisfactory to the General Manager of Engineering Services, Manager of Materials Management and the Director of Legal Services.
D. THAT no legal rights or obligations will be created by Council's adoption of Recommendation A, B, and C above unless and until such legal documents are executed and delivered by the Director of Legal Services.
COUNCIL POLICY
On January 29, 2004, Council approved implementation of fully automated garbage and yard trimmings collection beginning mid 2005 with full implementation by early 2007.
On January 29, 2004, Council approved funding the one-time capital cost of fully automated garbage and yard trimmings collection, estimated to be $15,900,000 from the Solid Waste Capital Reserve (details in appendix A).
On September 30, 2004, Council approved a user pay fee structure for automated collection of garbage and yard trimmings, with prices depending on the size of containers used.
The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the best value, based on quality, service and price.
Contracts with a value over $300,000 are referred to Council.
PURPOSE
This report seeks Council approval to award RFP PS04099 to Toter Incorporated to supply and deliver containers for automated garbage and yard trimmings collection.
BACKGROUND
On January 29, 2004 Council approved implementation and funding of fully automated collection of garbage and yard trimmings. The proposed program uses standard sized wheeled containers provided by the City, which are emptied using automated trucks.
Delivery of garbage containers to customers will begin in July 2005 and is expected to be complete in December 2005. Delivery of yard trimmings containers to customers will begin in January 2006 and is expected to be complete by June 2006.
DISCUSSION
On November 5, 2004 the City issued Request for Proposals (RFP) PS04099 for the supply and delivery of containers for automated collection. The RFP was issued to six vendors that had responded to Expression of Interest (EOI) PS04099 issued August 10, 2004 for the supply and delivery of containers for automated collection.
Four (4) proposals were opened on November 24, 2004 and referred to the General Manager of Engineering Services and the Manager of Materials Management for report. The RFP included supply of approximately 174,000 containers in five (5) different sizes, and delivery of the containers to approximately 87,000 garbage and yard trimmings customers in Vancouver. Proposals were received from the following proponents:
· OTTO Environmental Systems
· Rehrig Pacific Company
· Schaefer Systems International, Inc.
· Toter Incorporated
The RFP and proposal evaluation process was facilitated by the Material Management Branch of Corporate Services. An evaluation team made up of staff from the Solid Waste Management Branch and the Sanitation Operations Branch of Engineering Services assessed the proposals against the following criteria:
· Company profile and experience of key personnel;
· Container design;
· Container sizes available;
· Options;
· Delivery schedule;
· Distribution plan;
· Value added services;
· References;
· Warranty;
· Financial offering.
The following steps were taken in completing the evaluation process:
· Sample containers supplied by proponents were inspected by team members;
· Proposals were evaluated by team members individually;
· A composite score was assigned to each proposal based on team member scores;
· Pricing was then combined with the team composite score to provide an overall rating;
· Final evaluation and selection of vendor.
Evaluation results are shown in Appendix B.
The RFP called for one of the five (5) container sizes to be approximately 180 litres in size. The 180 litre size is expected to be the most popular garbage container size in Vancouver, since it is comparable to the current two can (200 litre) limit per household. Of the four proposals received, only Toter Inc. currently manufactures a container that is approximately 180 litres in size and meets the requirements.
The colour, finish and graphics for the container bodies and lids have not been finalized. Toter Incorporated offers several options for container colour, finish and markings. Granite grey colour for all container bodies is recommended (for an"upscale" look and to hide dirt and scuff marks) with a grey or black lid for garbage containers, and a green lid for yard trimmings containers.
The recommendation that the City award the contract to Toter Incorporated is based on the following strengths of their Proposal:
· Received the highest overall composite score;
· Lowest cost;
· The only vendor meeting container size requirements;
· Extensive experience with container supply and delivery projects similar in size;
· The only vendor with containers that are nestable fully assembled and that use one common wheel size for all container sizes, which will reduce long term operational costs;
· Available container colour, finish and graphics options.
FINANCIAL IMPLICATIONS
Funding is to be provided from the Solid Waste Capital Reserve and was previously approved by Council on January 29, 2004. The details of program implementation costs are provided in Appendix A. Solid Waste Utility fees are set to recover all operating and most capital costs of implementation.
When Council approved automation in January of this year, it was estimated that the cost (including PST) for supply and delivery of containers would be approximately $6,270,000 CAD for garbage and $7,020,000 CAD for yard trimmings. Based on the proposal by Toter Incorporated, the container supply and delivery costs (including PST) are now estimated at $4,600,000 CAD for garbage and $5,000,000 CAD for yard trimmings, depending on the actual final number of containers supplied and delivered. The total number of containers is estimated to be 174,000. The final cost of the contract will depend on the final distributions of container sizes selected by users. Estimated container size distribution is shown in Appendix C.
In January of this year, it was also estimated that the annual cost increase for garbage collection would be approximately $890,000 per year and approximately $700,000 per year for yard trimmings. The final cost for trucks will be about what was expected, but based on the proposal by Toter Incorporated, container costs will be significantly lower. As a result, the estimated cost increase for garbage will be approximately $570,000 per year and yard trimmings will be approximately $400,000 per year.
CONCLUSION
The proposal submitted by Toter Incorporated for the Supply and Delivery of Containers for Automated Collection offers best value to the City.
Accordingly, we recommend acceptance of the proposal offering best value from Toter Incorporated for supply and delivery of approximately 174,000 containers for automated collection, at a total cost of approximately $7,165,000.00 USD ($6,713,000.00 USD plus $278,000.00 USD for multi-colour graphics, plus $174,000.00 USD for granite finish).
- - - - -
APPENDIX A
Automated Collection Implementation Costs Approved January 29, 2004
ONE TIME IMPLEMENTATION COSTS |
YARD TRIMMINGS |
GARBAGE |
Containers |
||
- wheeled carts |
$6,750,000 |
$6,000,000 |
- cart delivery |
$270,000 |
$270,000 |
- cart decals |
$100,000 |
$100,000 |
Trucks |
||
- outstanding capital (early fleet replacement) |
$250,000 |
$650,000 |
Implementation |
||
- cart delivery coordination |
$165,000 |
$165,000 |
- billing changes |
$85,000 |
$85,000 |
- promotion/advertising |
$85,000 |
$85,000 |
- coordinator |
$90,000 |
$90,000 |
- hotline staff |
$75,000 |
$75,000 |
- driver/mechanic training |
$10,000 |
$60,000 |
- increased operating cost during transition |
$220,000 |
$220,000 |
Total Estimated Implementation Cost |
$8,100,000 |
$7,800,000 |
FUNDING OF IMPLEMENTATION COSTS |
YARD TRIMMINGS |
GARBAGE |
Solid Waste Capital Reserve |
||
- Solid Waste Collection Surplus (total $4.5 M) |
$2,250,000 |
$2,250,000 |
- Loan from Solid Waste Capital Reserve |
$5,850,000 |
$5,550,000 |
Total Funding |
$8,100,000 |
$7,800,000 |
UTILITY FEE IMPACT |
BEGIN 2006 |
BEGIN 2007 |
Annual Loan Repayment ($5.85 M & $5.55 M) |
+$660,000 |
+$630,000 |
Change in Annual Operating Cost |
-$70,000 |
+$150,000 |
Cart replacement costs |
+110,000 |
+$110,000 |
Total Annual Increase* |
+$700,000 |
+$890,000 |
Average Fee Increase per Customer* |
+$8 |
+$10 |
*Update to reflect final cart rates November 30, 2004 |
||
Total Annual Increase |
+$400,000 |
+$570,000 |
Average Fee Increase per Customer |
+$5 |
+$6 |
APPENDIX B
EVALUATION RESULTS
Rank |
Manufacturer |
Composite Score |
Total Price |
1 |
Toter Incorporated |
97.32% |
$6,713,000 USD |
2 |
Rehrig Pacific |
79.49% |
$7,300,000 USD |
3 |
OTTO Environmental |
66.91% |
$8,673,000 USD |
4 |
Schaefer Systems |
45.97% |
$5,930,000 USD* |
* The proposal from Schaefer Systems did not include 180 litre containers. If these were supplied by the lowest price for 180 litre containers the total cost would be $7,258,000 USD.
