Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services

SUBJECT:

Vancouver Landfill Gas and Road Reconstruction Projects

 

RECOMMENDATION

POLICY

Consultant awards exceeding $30,000 must be made by Council.

PURPOSE

The purpose of this report is to seek Council approval and funding for the second phase of Vancouver Landfill gas system work, involving the detailed design and construction of an upgraded and expanded system, and various engineering consulting and inspection tasks. The report also seeks Council approval to award a contract to Imperial Paving Limited to pave a two kilometre section of the Landfill's main access road.

BACKGROUND

The City of Vancouver has operated an active landfill gas (LFG) collection and flare system at the Vancouver Landfill since 1991. The control of LFG at the Vancouver Landfill is required under the terms of the Ministry of Environment, Lands and Parks "Landfill Criteria for Municipal Solid Waste". The system covers approximately 84 hectares of the site and was originally installed for odour control, but has the added benefit of reducing greenhouse gas emissions. A portion of the gas is used to heat and provide hot water for the Landfill's Administration Building and the remainder is flared. Most of the existing LFG system has reached the end of its service life and the system needs to be expanded onto approximately 62 hectares of the site that has been filled since the original LFG system was installed. There also exists an opportunity to beneficially use the LFG. Potential uses include power generation, and as an alternate fuel source for greenhouses or cement kilns.

As reported to Council on March 29, 1999, Conestoga-Rovers & Associated (CRA) was retained by the City early this spring to develop a conceptual design and budget for upgrading and expanding the Vancouver Landfill's gas management system. This work also included completion of a feasibility study and plan for utilization of the gas.

Primary access to active areas of the Landfill is maintained via a three kilometre long road. The eastern portion of this road is unpaved and is constructed with demolition material (primarily recycled concrete) and various secondary road aggregates. This section of road requires considerable maintenance and results in excess wear and tear on vehicles.

DISCUSSION

Vancouver Landfill Gas Project: CRA has now completed the first phase of Vancouver Landfill system expansion and beneficial use work. Based on the outcome of that study, the General Manager of Engineering Services recommends upgrading the current LFG system, constructing an expanded system, and seeking proposals to beneficially use the gas.

The total estimated cost of this LFG Phase II project is $5,396,920 including applicable taxes, and is divided as follows:

The cost of $4,667,971 for the detailed design and construction of the expanded system includes a 15 percent contingency to account for unforseen expenditures that may occcur during the project's implementation. Examples of unforseen expenditures include additional construction time required due to inclement weather, expanded project scope for coordination with other landfill upgrades projects, the type of LFG equipment specified during the detailed design stage and the actual method of construction employed.

The total estimated project cost of $5,396,920 may ultimately be reduced from potential greenhouse gas reduction credits, direct capital contributions, royalties or other revenue sources resulting from the benificial utilization of the LFG. The determination of methods of reducing the project's cost is included as a component of this Phase II project.

The total estimated project cost of $5,396,920 includes engaging CRA as the City's primary consultant for this work. CRA was selected for the first phase of LFG work using a competitive process. From an evaluation of four proposals received, CRA provided the best understanding of the City's requirements for the least cost alternative. Based on CRA's knowledge and experience with Vancouver's LFG system and expansion plans, on June 28, 1999 they were invited to provide the City with a letter proposal for developing design

specifications for upgrades, preparing a Request for Proposal (RFP) for the system expansion, and completing quality assurance construction auditing. CRA would also be responsible for developing contract documents and an RFP for Vancouver LFG utilization opportunities. The total cost of CRA's letter proposal is $199,901 excluding GST, and is included in the total estimated cost of $5,396,920 for the entire Phase II project. The cost of CRA's proposal is approximately four percent of the total project budget, which is well within the range of costs for professional services expected for this type of project.

To complete the detailed design and construction of an expanded LFG system in a compressed time frame and to take advantage of potential cost savings, a design-build method of project delivery would be utilized. Prior to issuing an RFP for this work, a Request for Expressions of Interest would be issued by the City in order to prepare a short-list of three to four pre-qualified contractors. By retaining CRA as the primary consultant to oversee this work, we can ensure that clear environmental and performance requirements are established and maintained, thereby providing the best value for the City.

Based on the quantity and inherent energy value of LFG from the Vancouver Landfill, CRA has determined the City has interesting LFG utilization opportunities to consider as a potential gas supplier. The beneficial use of Vancouver's LFG by the private sector would augment our contribution to greenhouse gas reductions and may provide a revenue stream to the City. The economic viability of an arrangement to supply LFG is strongly dependent on available local markets, available gas utilization technologies, and the role the City would take in such an arrangement. To further investigate and evaluate opportunities for LFG beneficial use, the City would issue a Request for Expressions of Interest. An RFP would then be issued to pre-qualified contractors.

The anticipated duration of the second phase of LFG work is one year. Pending the outcome of proposals received for LFG utilization opportunities at the end of 1999, Council's approval would be sought for a Phase III project, involving the design and construction of a system for LFG beneficial use, through a partnership between the City and private sector.

Landfill Road Paving Project: Six tenders were received on June 30, 1999 for paving a two kilometre section of Vancouver Landfill main access road. These tenders ranged in price from $330,720 to $401,784, including applicable taxes. Imperial Paving Limited submitted the lowest price tender. All tenders include the cost of supplying and installing road building materials over the eastern portion of the access road. The contract is based on unit pricing of estimated quantities. Therefore, the actual cost of the tender may vary according to the quantities measured during construction.

Based on a comparison of tenders received, it is recommended that Imperial Paving Ltd. be awarded this work on the basis of their low tender and their company's qualifications and experience with the type of work.

FINANCIAL IMPLICATIONS

The estimated cost of upgrading and expanding the Vancouver Landfill gas work and preparing an RFP for utilization is $5,396,920, and can be funded through a loan from the Solid Waste Capital Reserve. The loan will be distributed to users of the landfill through the Burns Bog rate. The additional cost to each Solid Waste Utility customer is expected to be about $2.00 per year.

The estimated cost of paving the eastern portion of the Vancouver Landfill access road is $330,720. This cost will be offset by reduced road and vehicle maintenance expenditures. More than $50,000 per year is spent on grading, road materials, dust control, and vehicle repairs because this road section is unpaved. A paved access road will allow the City to eliminate a road grader; the annual operating cost of the grader alone is $35,000. Based on projected annual cost savings, the capital cost of paving this road section can be recovered in approximately five years. Funding for the road reconstruction work has been included in the 1999 Landfill Operating Budget.

ENVIRONMENTAL IMPACT

By completing the proposed LFG upgrades and expansion, the City will ensure that the Vancouver Landfill will continue to meet British Columbia's environmental standards.

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