A3


                             ADMINISTRATIVE REPORT


                                                     Date: October 18, 1996
                                                     File No.  CREP061.wpd 



   TO:       Vancouver City Council

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

   SUBJECT:  AWARD OF TENDER NO. 56-96-02
             SUPPLY OF PROPANE GAS AND STORAGE TANKS


   RECOMMENDATION

        THAT  Council accept the low  bid from Super-Save  Propane, for the
        supply of  propane gas  in contractor-owned and  City-owned storage
        tanks,  and cylinder  rentals,  as, if  and  when required,  for  a
        24-month period from date of acceptance, at an estimated total cost
        of $461,000, plus the 7% Goods and Services Tax (less any municipal
        rebate  received),  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.

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


   DISCUSSION

   Tenders for the  above were opened  by the City  Clerk on September  03,
   1996,  and referred to the  General Manager of  Engineering Services and
   the Manager of Purchasing Services for report.

   A copy of the tabulation of bids is on file in the Purchasing office.

   The 7% Goods and Services Tax (less any municipal rebate received) is in
   addition to all prices shown in this report and in the  tabulation.  The
   Provincial Sales Tax is not applicable.





                                     - 2 -





   Funds for all purchases are provided for in the Operating Budget.

   At present, the  City owns some propane dispensing equipment  and one of
   the three storage tanks required.  Two storage tanks are supplied by the
   current contractor.

   The tender  requested prices for two items.  Item one, for the supply of
   propane  gas if  storage tanks are,  a) owned  by the  contractor and b)
   owned by the City.  Item two, is for the rental of cylinders.

   Five  firms submitted tenders.  Super-Save Propane submitted the low bid
   for both items.

   We  are,  therefore,   recommending  acceptance  of  the  low  bid  from
   Super-Save Propane,  for the supply  of propane gas  in contractor-owned
   and City-owned storage tanks, and the rental of cylinders.


                                                                   *           *           *           *           *