ADMINISTRATIVE REPORT

                                           Date: May 1, 1997
                                           File No. Crep071.wpd
                                           CC File No.: 1801-1

   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, 1997 to
        June 30, 1998 at an annual estimated cost of $721,490, 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).

   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 price adjustment for the next 12-month period is 0.5%. 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, 1997, to June 30, 1998.
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