ADMINISTRATIVE REPORT

                                                               May 26, 1995


   TO:       Vancouver City Council

   FROM:     General Manager, Engineering Services and 
             City Purchasing Agent

   SUBJECT:  Award of Tender No. 54-95-01
             The Supply of Parking Meters


   RECOMMENDATION

        THAT Council accept the bid which offers the best value to the City
        from Trafco (Canada) for three hundred and seventy-four (374) McKay
        twin electronic parking meters, model MKV-97-2-HD/K-32, and thirty-
        five  (35) McKay  single electronic  parking meters,  model MKV-97-
        HD/K-32, complete with  canisters, at a total  cost of $335,633.67,
        plus the Provincial Sales Tax,  subject to a contract  satisfactory
        to the Director of Legal Services.


   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, except where an allowance of a maximum of
   5% is given to those bidders whose tender reflects local content.

   Contracts with a value over $200,000 are referred to Council for award.


   DISCUSSION

   Tenders for the above  were opened on May 8,  1995, and referred to  the
   General  Manager, Engineering  Services  and City  Purchasing Agent  for
   report.  The Provincial Sales Tax is in addition to  all prices shown in
   this report and in the tabulation.  The G.S.T. is not applicable to this
   purchase.   A copy  of the  tabulation of bids  is on  file in  the City
   Purchasing Agent's Office.   Funds of $364,000.00 for this  purchase are
   provided from the  Meter Purchase,  Meter Expansion  and Yaletown  Meter
   Accounts.

   The  tender  requested prices  for  twin and  single  mechanical parking
   meters  and,  as an  alternative,  twin  and single  electronic  parking
   meters, to  serve  up to  850  parking spaces.    Since the  opening  of
   tenders, Engineering Services have  advised that 374 twin and  35 single
   parking meters for a total of 783 parking spaces are now required.
   Three firms  submitted a total of three bids for mechanical meters and a
   total of six bids for the alternative electronic meters.

   Total prices  for  the  mechanical  meters  range  from  $269,178.25  to
   $312,960.35 and total prices for the alternative electronic meters range
   from $275,649.75 to $411,304.05.

   The low bid for mechanical meters, at a total cost of $269,178.25, meets
   the tender specifications but is not recommended for acceptance.  We are
   recommending  the purchase of electronic meters at an additional cost of
   $66,455.42,  for a total cost  of $335,633.67 (recommended  bid), on the
   basis of best value, as discussed below.

                                     - 2 -

   Electronic  meters provide  reduced maintenance  costs, estimated  to be
   $7,800.00 per  year over  the 20-year  life of  the meters.   Electronic
   meters also provide ease of rate changes, positive audit capability, the
   ability  to accept more  coin combinations, acceptance  of fewer foreign
   objects and importantly, in the case of the recommended bid, the ease of
   retrofitting  to  accept  a  smart card  or  debit  card  once this  new
   technology is further developed and available.

   Lower  bids than the recommended bid  were received from Interprovincial
   Traffic  Services Ltd. and  Duncan Industries for  electronic meters but
   are not recommended for acceptance for the following reasons:

        The  POM  model  APM-2X  electronic  meter  mechanism,  offered  by
        Interprovincial Traffic Services Ltd., is of a new technology  that
        is  not yet  proven.   This  is a  single meter  that controls  two
        parking  spaces.    The  initial tests  of  a  demonstration  unit,
        conducted by City  staff, proved  the controls to  be confusing  to
        use.  Many times the wrong space was selected.  

        The  Duncan Eagle  electronic  meter mechanism,  offered by  Duncan
        Industries, does not meet the  tender specifications for the number
        of coin combinations.  12 are required and the Duncan unit provides
        7.   The number  of coin combinations  is important.   The Canadian
        Mint is to  produce a $2.00 coin and is  changing the metal content
        in the other  coins.  We also accept U.S. coins.   In addition, the
        mechanism does not allow for the eventual upgrade to  smart card or
        debit card use.

   The bid for electronic  meters received from Trafco (Canada), at a total
   cost  of $335,633.67, meets all tender specifications and allows for the
   future upgrade  to smart card  or debit  card use.   We are,  therefore,
   recommending acceptance of this bid, which offers the best value  to the
   City.




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