ADMINISTRATIVE REPORT

                                                    Date: November 23, 1995
                                                    File No. Crep043.Cov   


   TO:       Vancouver City Council

   FROM:     General  Manager  of  Engineering   Services  and  Manager  of
             Purchasing Services

   SUBJECT:  Contract Extension  - Contract  No. 40-92-01, Supply,  Retread
             and Repair of Tires and Tubes.


   RECOMMENDATION

        THAT Council approve the extension of the contracts to Kal Tire for
        items 1 & 3, Irving Tire Ltd./Quality Retreaders Inc. for items 2 &
        5, and Pacific Rim  Tire Distributors for item  4, for the  Supply,
        Retread and Repair of Tires and  Tubes, for an additional and final
        12-month  period at an annual  estimated cost of $107,562, $246,928
        and $4,413 respectively, plus  the 7% Goods and Services  Tax (less
        any  municipal rebate received),  the Provincial Sales  Tax 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, 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

   On January 26, 1993, Council awarded 24-month contracts to  Kal Tire for
   items 1 &  3, Irving Tire Ltd./Quality Retreaders Inc. for  items 2 & 5,
   and Pacific  Rim Tire Distributors for  item 4, for  the Supply, Retread
   and Repair of Tires  and Tubes, at 24-month estimated costs of $215,124,
   $493,856 and $8,826  respectively, plus  the 7% Goods  and Services  Tax
   (less any municipal rebate  received), the Provincial Sales Tax  and the
   Provincial Environmental Levy.

   The contracts  provide for two  12-month extensions by  mutual agreement
   between the  City and  the contractors.   On  December 6,  1994, Council
   approved the first 12-month extensions.
                                     - 2 -


   The above contractors  have agreed to extend for a  second and final 12-
   month period, under the existing terms and conditions, as set out in the
   contracts.

   Considering  that Kal Tire, Irving Tire Ltd./Quality Retreaders Inc. and
   Pacific Rim Tire  Distributors have been  satisfactory suppliers, it  is
   recommended that the contracts  be extended for an additional  and final
   12-month period.

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