ADMINISTRATIVE REPORT


                                           Date:  July 2, 1997
                                           Dept. File No.: H 193-35
                                           CC File No.: 1805


   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services
             Manager of Purchasing Services

   SUBJECT:  Award of Tender No. 35-97-03, 
             Supply of 35 Ton Landfill Compactor


   RECOMMENDATION

        THAT Council  accept  the low  bid from  Finning Ltd,  for one  (1)
        Caterpillar  Model  826G Landfill  Compactor  at  a total  cost  of
        $359,375.00,  plus  the  Provincial  Sales Tax,  the  7%  Goods and
        Services  Tax (less  any  municipal  rebate  received) and  the  BC
        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 values based
   on quality, service and price.

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


   DISCUSSION

   Tenders  for the above were  opened on May 12,  1997 and referred to the
   General  Manager of Engineering  Services and the  Manager of Purchasing
   Services  for report.    The  Provincial Sales  Tax,  the  7% Goods  and
   Services  Tax   (less  any  municipal   rebate  received)  and   the  BC
   Environmental Levy  are in addition to all  pricing shown in this report
   and in the tabulation.  Funds are provided from the Truck Plant Account.


   The tender called  for prices  for the  supply of  one Landfill  Garbage
   Compactor. This machine is used at the Vancouver Landfill and replaces a
   unit which has reached the end of its economic life. 

   Three  bids were received from  three suppliers. One  of these suppliers
   offered a  rebuilt machine as an  alternative bid.  It  is non-compliant
   because it did not provide specification details, warranty, and optional
   prices  for  extended  warranties, trade-in  or  buy  back,  and is  not
   considered.  Prices for  the remaining  two  bids including  options and
   trade-in range from $359,375 to $410,669.

   The low bid from Finning Ltd. meets specifications and is acceptable.

   We are, therefore, recommending  acceptance of the low bid  from Finning
   Ltd.  for  one Caterpillar  model 826G  Landfill  Compactor, at  a total
   purchase price of $359,375. ($439,658, plus $19,717 for wheel tips, less
   $100,000 trade-in  for City s 1990  Caterpillar Model  826C, no.  B2454,
   plus no charge for 5 year/7500hr extended warranty).


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