ADMINISTRATIVE REPORT

Date: April 16, 1998

Author/Local: Jim Lloyd/7257

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	Renewal Option - Contract No. 58-96-05 - Supply And Delivery of Cover Material

RECOMMENDATION

THAT Council approve the exercise of the renewal option and that the City enter into a new contract with Poschner Construction (88) Ltd. for the supply and delivery of cover material at the Vancouver Landfill, for an additional 12-month period from July 1, 1998, to June 30, 1999, at an annual estimated cost of $722,788 plus the 7% Goods and Services Tax (less any municipal rebate received).

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.

DISCUSSION

On June 11, 1996, Council awarded a 12-month contract to Poschner Construction (88) Ltd. for the supply and delivery of cover material at the Vancouver Landfill, at an annual estimated cost of $717,900 plus the 7% Goods and Services Tax (less any municipal rebate received). Cover material is dredged or reclaimed material used for road building or to cover refuse at the landfill.

The initial contract allows the City to exercise two 12-month renewal options. The renewal option also provides for a price adjustment linked to the Consumer Price Index. The first renewal option was approved by Council on June 3, 1997 with a 0.5% increase.

The price adjustment for the next 12-month period is 0.18%. All other terms and conditions remain the same as the initial contract.

Considering that Poschner Construction Ltd., has been a satisfactory supplier, it is recommended that the City exercise the renewal option and enter into a new contract from July 1, 1998 to June 30, 1999.

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(c) 1998 City of Vancouver