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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