ADMINISTRATIVE REPORT

Date: May 16, 2002
Author/Local: T. Ban/323-7882

RTS No. 02690

CC File No. 1805

Council: May 28, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager - Materials Management
SUBJECT:	Contract No. PS01059 The Supply and Delivery of Tandem Axle Chassis

RECOMMENDATION

THAT Council approve the purchase of an additional four (4) 2003 International model 9400, 6 x 4 tandem axle chassis from Co-Van International Trucks, at a total cost of $451,660 plus the PST, the 7% GST (less any municipal rebate received), and the Provincial Environmental Levy.

COUNCIL POLICY

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 with a value over $300,000 are referred to Council.

BACKGROUND

On November 20, 2001, Council awarded a contract to Co-Van International Trucks for the supply of four (4) International model 9400, 6 x 4 tandem axle chassis and cabs at a total cost of $434,140 plus the GST (less any municipal rebate received), the PST and the Provincial Environmental Levy.

These units were purchased as replacement units in the 2001 program year to haul refuse from the Vancouver Transfer Station to the Vancouver Landfill.

DISCUSSION

The contract provides for the purchase of an additional four (4) cab and chassis within twelve (12) months, subject to authorized price changes by the City. Co-Van International Trucks has agreed to supply four (4) additional International model 9400, 6 x 4 tandem axle chassis and cabs for an additional 4.3% from the previous contract price. The price adjustment is due to 2003 model year change and U.S. exchange rate price increase.

After delivery and some field testing of the original four (4) units, Engineering Services has identified two beneficial changes to the cab and chassis that will better meet the City's operational needs. The first change is an increase of the wheelbase from 177" to 189". This increased wheelbase will improve the payload distribution to the rear axles. The second change is from a dual fuel tank to a larger single fuel tank. This will provide weight and space savings. There is a $195 credit for the single fuel tank and no additional cost to the change in wheelbase.

FINANCIAL IMPLICATIONS

These four units are scheduled for replacement in the 2002 replacement program. The units have reached the end of their planned lives. The estimated budget cost was $480,000. Funding is provided from the Plant Account. The net purchase cost, excluding taxes and levies is $451,660.

CONCLUSION

The price increase from Co-Van International Trucks is reasonable and the City will reduce fleet maintenance cost with the standardization of these trucks. We therefore, recommend the purchase of an additional four (4) 2003 International model 9400, 6 x 4 tandem axle chassis and cabs at a total cost of $451,660 ($106,400 each plus $2010 for options as previously supplied, plus $4700 for the 2003 model year and U.S. exchange rate price adjustment less $195 for a single right hand side fuel tank.

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(c) 1998 City of Vancouver