ADMINISTRATIVE REPORT

                                           Date: May 30, 1997                                           File No.  CREP 075
                                           CC File No.  1801-1

   TO:  Vancouver City Council

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

   SUBJECT:  Contract Extension - Contract No. 25-94-02
             Towing Services for the City of Vancouver


   RECOMMENDATION

        THAT Council approve the extension of the contract to Unitow
        Services (1978) Ltd. for towing services for the City of Vancouver,
        for an additional 12-month period from July 1, 1997.

   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 for award.

   BACKGROUND

   On June 16, 1994, Council awarded a 36-month contract to the overall low
   bidder, Unitow Services (1978) Ltd., for towing services for the City of
   Vancouver, which expires on June 30, 1997. The contract provides for two
   12-month extensions unilaterally by the City. This is the first 12-month
   extension.

   The contract provides for towing services to remove vehicles at the
   request of members of the City of Vancouver Police Force and the City
   Engineering Services, to specific storage places and other places within
   the City and occasionally outside the City, as directed from time to
   time. The contract includes the following towing services, as specified
   in the document:
        "The contractor perform such towing services when called in each of
        the following circumstances:

        (a)  all towing of impoundments for violation of City By-laws, or
             pursuant to Sections under the Motor Vehicle Act;
        (b)  all required towing of vehicles in police custody;
        (c)  all towing of vehicles within the City limits or from other
             areas as directed by the Police Department, required for
             Police investigations;
        (d)  all towing of Police Vehicles;
        (e)  all towing of City-Owned Vehicles (excluding Police Vehicles);
        (f)  all towing of Abandoned Vehicles."

   The contract is primarily funded by the traffic by-law violators, with
   the City s cost restricted to those incurred for the towing of
   City-Owned, Abandoned and Police vehicles, or private vehicles required
   for Police investigation.

   DISCUSSION

   Prices are firm for the first year of the contract, with a specific
   formula related to the Consumer Price Index for Vancouver regulating the
   price changes in subsequent years.  This results in an allowable
   increase of 0.51% from July 1, 1997 to June 30, 1998.

   Depending on the individual item, the adjustment is made to the nearest
   dollar ($1.00), twenty-five cents ($0.25) or cent ($0.01), as specified
   in the contract.  A comparison of prices from 1994 to the proposed
   impounding charges, payable by the public, are as follows:

                                  1994    1995    1996   Proposed
                                  Rate    Rate    Rate   1997 Rate
                                                         (Remains
                                                         unchanged
                                                         from 1996)
   For the removal    Under 5500
   of any impounded   kg. GVW     $21.95  $21.95  $21.95 $21.95
   vehicle, including   the first day      Over 5500
   storage charge.    kg. GVW     $35.00  $36.00  $37.00 $37.00

   Additional daily
   storage charge
   after the day
   of impounding.                 $ 8.50  $ 8.75  $ 9.00 $ 9.00

   The Province of British Columbia has recently made changes to the Motor
   Vehicle Act, referred to in (a) above, for the longer term impoundment
   of motor vehicles by Police officers under the Vehicle Impoundment
   Program.  As this is a new program, the City has asked for and received,
   from Unitow, written confirmation that it will comply with the rules and
   regulations for impound lot operators published by or on behalf of the
   Province of British Columbia.

   All other terms and conditions would remain the same.

   Considering that Unitow Services (1978) Ltd. has been a satisfactory
   supplier, it is recommended that the contract be extended for an   additional 12-month period.

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