ADMINISTRATIVE REPORT

Date: March 25, 1999

Author: Doug Thomas/7190)

RTS No. 613
CC File No. 1805

Council: March 30, 1999

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager of Purchasing Services
SUBJECT:	Award of Tender No. PS99010 - Supply and Delivery of Wheeled Recycling Containers

RECOMMENDATION

THAT Council accept the low bid from Schaeffer System International Ltd. for the supply and delivery of between 15,000 and 20,000 wheeled recycling containers for the Apartment Recycling Program at a total cost of between $913,500 and $1,218,000, plus the Provincial Sales Tax, the 7% Goods and Services Tax (less any municipal rebate received), subject to a contract satisfactory to the Director of Legal Services.

COUNCIL POLICY

In April 1998, Council approved the implementation of the Apartment Recycling Program.

In April 1998, Council approved funding the one-time capital cost of the Apartment Recycling Program, estimated to be $2,556,000 from the Solid Waste Capital Reserve.
The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the highest value based on quality, service and price.

Contracts over $300,000 are awarded by Council.
BACKGROUND

Between 15,000 and 20,000 wheeled recycling containers are required at this time for the implementation of the Apartment Recycling Program set to begin May 1, 1999. The Apartment Recycling Program will provide recycling services to all Vancouver residential buildings that do not receive the City's Blue Box collection service. This includes approximately 4,500 multi-family buildings or 120,000 individual apartment dwellings. This program is expected to provide a similar level of recycling service to apartment buildings as the Blue Box program provides to single-family, duplex and conversion dwellings.

Most multi-family buildings will use a centralized wheeled cart system for the collection of recyclables. All wheeled recycling carts used in the City-wide Apartment Recycling Program will be purchased by the City, including those used by the contractors in the contract service areas (there are four contract areas).

Under the implementation plan, the wheeled recycling containers will be delivered to each building by the collector (either contractor or City forces). The collector will determine how many containers are required for each building based on the number of suites and the frequency of pick ups. Based on current information (i.e. number of multi-family buildings and number of suites) City staff determined that between 15,000 and 20,000 wheeled carts would be required to implement the Apartment Recycling Program for all multi-family buildings in the City.

DISCUSSION

Tenders for the supply and delivery of wheeled recycling containers were opened on March 24, 1999. The tender requested a unit price for a minimum period of twelve (12) months with a guaranteed maximum increase for the second year of the contract. As an option, bidders were invited to provide a firm unit price for the full 24 month term of the contract. Two (2) bids were received which met the requirement of supplying samples, with unit prices ranging from $60.90 to $65.69 for the first year. A tabulation sheet is attached which summarizes the bids received.

The low bid from SSI Schaeffer Systems International Ltd. at $60.90 per unit meets all specifications and is recommended.

FINANCIAL IMPLICATIONS

The above noted capital expenditure of between $913,500 and $1,218,000 for the supply and delivery of wheeled recycling containers will be provided from the Solid Waste Capital Reserve.

The total expenditure compares favourably with the estimated cost of $1,200,000 for an estimated 14,000 Wheeled Carts outlined in the Policy Report "Contracting Out a Portion of the Apartment Recycling Program" dated April 9, 1998.

CONCLUSION

Staff recommend acceptance of the low bid from Schaeffer System International Ltd. for the supply of between 15,000 and 20,000 wheeled recycling containers at a total purchase price of between $913,500 and $1,218,000.

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(c) 1998 City of Vancouver