ADMINISTRATIVE REPORT

                                                      Date: April 25, 1997 
                                                      File No.  CREP070.wpd
                                               C.C. File No.: 1801-1

   TO:      Vancouver City Council

   FROM:    Chief Constable, General Manager of Engineering Services    and
            Manager of  Purchasing Services

   SUBJECT: DIRECT PURCHASE OF POLICE MOTORCYCLES


   RECOMMENDATION

       THAT  Council   approve  the   direct  purchase  from   Trev  Deeley
       Motorcycles  Ltd.,  a  division  of  Fred  Deeley  Imports Ltd.,  of
       twenty-one 1998 Harley-Davidson FLHPI Road  King police motorcycles,
       at  a total price  of $294,000,  plus the 7% Goods  and Services Tax
       (less  the  anticipated  receipt   of  the  municipal  rebate),  the
       Provincial Sales Tax, and the Provincial Environmental Levy, 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. It is Council policy that purchases over
   $100,000 be by public tender.

   Council approval is required for contracts with a value over $300,000.

   DISCUSSION

   The  Vancouver Police  Department  requires the  purchase of  twenty-one
   police motorcycles. 

   The  7% Goods  and Services  Tax  (less the  anticipated receipt  of the
   municipal  rebate),  the  Provincial   Sales  Tax,  and  the  Provincial
   Environmental Levy are in addition to the prices shown in this report.

   Funding  is provided for in the 1997 Police Department Operating Budget.
                                     - 2 -


   Harley-Davidson motorcycles  are  the preferred  motorcycles for  police
   duties.  Trev Deeley Motorcycles Ltd., a division of Fred Deeley Imports
   Ltd.,  is the  exclusive distributor  of Harley-Davidson  motorcycles in
   Canada. 

   Instead  of proceeding  by  the normal  tender  process, a  Request  for
   Quotation was  prepared and sent  directly to  Trev Deeley s due  to the
   sole supplier situation.

   The  Request  for Quotation  also provided  a  pricing schedule  for the
   optional trade-in  of the Police Department s  existing motorcycles. The
   trade-in would be delayed to December 1997 as the Police Department will
   require  both  the new  as  well as  existing motorcycles  for  the Asia
   Pacific Economic Conference. The  City retains the option to  dispose of
   the surplus motorcycles by  other means. Trev Deeley offered  a purchase
   price of $14,000 each for  a new Harley-Davidson FLHPI Road  King police
   motorcycle at a  total price  of $294,000. The  total optional  trade-in
   value, if the City selects this  option for all motorcycles, will offset
   the purchase price by $205,500, resulting in a potential net cost to the
   City of $88,500.

   The City should  reserve the right to dispose of the surplus motorcycles
   by  either trade-in  as  offered or  by other  methods,  such as  public
   auction or surplus offer or a combination of methods that will result in
   best value to the City.

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