ADMINISTRATIVE REPORT

Date: March 24, 2000
Author/Local: C.Underwood/ 946-3984
RTS No. 01364

CC File No. 3757

Council: March 28, 2000

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Vancouver Landfill: Selection of a Design-Build Contractor for Expanded Landfill Gas Control System Project

RECOMMENDATION

THAT CH2M Gore & Storrie Limited be retained to design and construct an Expanded Landfill Gas Control System at the Vancouver Landfill at a cost of $3,005,860 plus GST, subject to a contract satisfactory to the Director of Legal Services, with funds provided from a loan from the Solid Waste Capital Reserve to be repaid by users of the Landfill.

POLICY

On May 3, 1994, Council agreed to support the Regional Solid Waste Management Plan (SWMP), which includes requirements to upgrade the Vancouver Landfill.

On October 16, 1990, Council adopted the Clouds of Change program of actions, committing to reduce carbon dioxide emissions by 20% by 2005 compared to 1988.

Construction contract awards exceeding $300,000 must be made by Council.

PURPOSE

The purpose of this report is to seek Council approval to award a contract to CH2M Gore & Storrie Limited to design and construct an expanded landfill gas (LFG) control system at the Vancouver Landfill.

BACKGROUND

On July 27, 1999 Council approved recommendations from the City Engineer for upgrading and expanding the Vancouver Landfill LFG collection system. Council also authorized the City Engineer to seek proposals for beneficial use of the gas. A total budget of $5,400,000 was set for these projects. This budget includes $4,500,000 for expanding the LFG system. The expansion project involves the detailed design and construction of an expanded LFG control system that is expected to double the amount of LFG currently collected at the Vancouver Landfill.

Expediting the expansion project through a design-build process is required for maximizing the capture of LFG. Expanding the LFG collection system is essential for mitigating Landfill odours, reducing greenhouse gas emissions and for pursuing LFG beneficial use. The Ministry of the Environment, Lands and Parks requires the City to plan for an expanded LFG system, under the terms of the Vancouver Landfill's draft Operational Certificate.

In order to pre-qualify LFG expansion project proponents, the City Engineer issued a request for expressions of interest (EOI) in August of 1999. Subsequent to receiving nine EOIs for the expansion project, the City short listed two firms for the receipt of a Request for Proposals (RFP):
1. CH2M Gore & Storrie Ltd. (CG&S); and,
2. Golder Associated Innovative Applications (GAIA) Inc.

On October 14, 1999 the City Engineer issued a memo to Mayor and Council, which describes the rationale for pre-qualifying LFG design-build proponents.

DISCUSSION

On December 10, 1999 the City issued an RFP to CG&S and GAIA for the design and construction of an expanded LFG control system. The project involves the completion of a detailed engineering design, and the supply and installation of a network of wells, piping and associated LFG control equipment.

Both CG&S and GAIA responded to the LFG design-build RFP, with costs as follows (excluding GST):

CG&S $2,834,840
GAIA $4,561,743

Neither of the proposals complied with the RFP as issued. Both proposals were therefore rejected. To expedite the project delivery process with a view to maximizing the collection of LFG, the City commenced parallel negotiations with both CG&S and GAIA. These negotiations resulted in the following revised lump sum price proposals (excluding GST) for systems which will comply with the RFP:

CG&S $3,005,860
GAIA $4,576,743

Based on an evaluation of the revised proposal submissions received, it is recommended that CH2M Gore & Storrie Ltd. (CG&S) be awarded the work on the basis of best value for the City, their company's qualifications and their experience with this type of work.

While both proposals are committed to meeting the City's RFP requirements, CG&S's proposal is based on a conceptual design of the expanded system. During the detailed design stage it may be determined that design modifications are required, which may result in a modification to the project's cost. Additional resources may also be required for design and construction review during the implementation of the project. Anticipated additional resources are within the project's budget.

FINANCIAL IMPLICATIONS

The total cost of the Expanded Landfill Gas Control System Project is estimated at $3,005,860 excluding GST. This cost is well within the budgeted project cost of $4,500,000 and will be funded through a loan from the Solid Waste Capital Reserve that was approved by Council on July 27, 1999. The term of the loan is nine years. The loan is distributed to users of the Landfill through the Burns Bog rate. The additional cost to each Vancouver Solid Waste Utility customer for upgrading, expanding and pursuing LFG utilization is $1.50 starting in 2000, less any revenues that may be received through beneficial use of the gas.

ENVIRONMENTAL IMPACT

By expanding the Vancouver Landfill gas control system the City will ensure that the Vancouver Landfill will continue to meet British Columbia's environmental standards.
Expediting this project through a design-build delivery process will maximize the environmental benefits of reducing LFG emissions.

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(c) 1998 City of Vancouver