ADMINISTRATIVE REPORT May 26, 1995 TO: Vancouver City Council FROM: General Manager, Engineering Services and City Purchasing Agent SUBJECT: Award of Tender No. 54-95-01 The Supply of Parking Meters RECOMMENDATION THAT Council accept the bid which offers the best value to the City from Trafco (Canada) for three hundred and seventy-four (374) McKay twin electronic parking meters, model MKV-97-2-HD/K-32, and thirty- five (35) McKay single electronic parking meters, model MKV-97- HD/K-32, complete with canisters, at a total cost of $335,633.67, plus the Provincial Sales Tax, 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, except where an allowance of a maximum of 5% is given to those bidders whose tender reflects local content. Contracts with a value over $200,000 are referred to Council for award. DISCUSSION Tenders for the above were opened on May 8, 1995, and referred to the General Manager, Engineering Services and City Purchasing Agent for report. The Provincial Sales Tax is in addition to all prices shown in this report and in the tabulation. The G.S.T. is not applicable to this purchase. A copy of the tabulation of bids is on file in the City Purchasing Agent's Office. Funds of $364,000.00 for this purchase are provided from the Meter Purchase, Meter Expansion and Yaletown Meter Accounts. The tender requested prices for twin and single mechanical parking meters and, as an alternative, twin and single electronic parking meters, to serve up to 850 parking spaces. Since the opening of tenders, Engineering Services have advised that 374 twin and 35 single parking meters for a total of 783 parking spaces are now required. Three firms submitted a total of three bids for mechanical meters and a total of six bids for the alternative electronic meters. Total prices for the mechanical meters range from $269,178.25 to $312,960.35 and total prices for the alternative electronic meters range from $275,649.75 to $411,304.05. The low bid for mechanical meters, at a total cost of $269,178.25, meets the tender specifications but is not recommended for acceptance. We are recommending the purchase of electronic meters at an additional cost of $66,455.42, for a total cost of $335,633.67 (recommended bid), on the basis of best value, as discussed below. - 2 - Electronic meters provide reduced maintenance costs, estimated to be $7,800.00 per year over the 20-year life of the meters. Electronic meters also provide ease of rate changes, positive audit capability, the ability to accept more coin combinations, acceptance of fewer foreign objects and importantly, in the case of the recommended bid, the ease of retrofitting to accept a smart card or debit card once this new technology is further developed and available. Lower bids than the recommended bid were received from Interprovincial Traffic Services Ltd. and Duncan Industries for electronic meters but are not recommended for acceptance for the following reasons: The POM model APM-2X electronic meter mechanism, offered by Interprovincial Traffic Services Ltd., is of a new technology that is not yet proven. This is a single meter that controls two parking spaces. The initial tests of a demonstration unit, conducted by City staff, proved the controls to be confusing to use. Many times the wrong space was selected. The Duncan Eagle electronic meter mechanism, offered by Duncan Industries, does not meet the tender specifications for the number of coin combinations. 12 are required and the Duncan unit provides 7. The number of coin combinations is important. The Canadian Mint is to produce a $2.00 coin and is changing the metal content in the other coins. We also accept U.S. coins. In addition, the mechanism does not allow for the eventual upgrade to smart card or debit card use. The bid for electronic meters received from Trafco (Canada), at a total cost of $335,633.67, meets all tender specifications and allows for the future upgrade to smart card or debit card use. We are, therefore, recommending acceptance of this bid, which offers the best value to the City. * * * * *