ADMINISTRATIVE REPORT

Date: September 24, 1997

File No. CREP082.wpd

CC File No. 1805

TO: Vancouver City Council

FROM:General Manager of Engineering Services

Manager of Purchasing Services

SUBJECT: Contract Extension - Contract No. 39-96-03

Supply of Refuse Transfer Semi-trailers

RECOMMENDATION

THAT Council approve the extension of the contract to Knight Trailer Company for five additional Knight model KC312 refuse transfer semi-trailers at a total additional cost of $416,905 ($79,500.50 each, plus $1,492.50 each for truck and trailer tire fenders, plus $2,388 each for T-1 steel sub frame), plus 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.

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

DISCUSSION

On November 5, 1996, Council awarded a contract to Knight Trailer Company, for the supply of six (6) refuse transfer semi-trailers (five replacements and one additional) at a total cost of $500,286 plus the 7% Goods and Services Tax (less any municipal rebate received), the Provincial Sales Tax and the Provincial Environmental Levy. The five replacements represent half of this fleet. The second half of this fleet is now to be replaced and our experience with the first units has been satisfactory. Funds of $525,000 are provided from the Truck Plant Account.

The contract provides for an extension to purchase three (3) to six (6) additional refuse transfer semi-trailers by December 31, 1997. Knight Trailer Company, has agreed to extend an additional five (5) units, based on the previous purchased price. All other terms and conditions would remain the same. We therefore, recommend the contract with Knight Trailer Company be extended for five additional refuse transfer semi-trailers.

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(c) 1997 City of Vancouver