ADMINISTRATIVE REPORT

Date: November 03, 1997

File No. CREP085.wpd

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	Contract Extension - Contract No. 35-97-03 Supply Of 35 Ton Landfill Compactor

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RECOMMENDATION

THAT Council approve the extension of the contract to Finning Ltd., for one (1) Caterpillar Model 826G Landfill Compactor at a total additional cost of $349,375 (subject to US dollar exchange), plus the Provincial Sales Tax, the 7% Goods and Services Tax (less any municipal rebate received) and the BC Environmental Levy.

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. On July 22, 1997 Council approved the purchase of one unit from Finning Ltd. at a total cost of $349,375 including options and a $100,000 trade-in.

Two compactors are in operation at the Vancouver Landfill. This report deals with the replacement of the second unit that has reached the end of its economic life.

Funding of $520,000 is provided from the Plant Account for this purchase.

The tender called for prices for the supply of one Landfill Garbage Compactor with the proviso that an additional machine could be purchased within 12 months by mutual agreement between the contractor and the City of Vancouver. In the tender, the City requested and the contractor supplied trade-in prices for both the old machines. At this time the contractor has agreed to supply a second machine at the same price subject to: (a) an order before Dec. 31, 1997, (b) invoicing at the time of delivery subject to the US dollar exchange rate based on a 1.395 rate at the time of the tender close, and (c) a reduction in the trade-in price to $110,000 from $115,000 (due to the added usage resulting from the later purchase).

These conditions are all acceptable.

We are, therefore, recommending that the contract with Finning Ltd. be extended for one additional Caterpillar model 826G Landfill Compactor, at a total additional purchase price of $349,375 (subject to US dollar exchange), ($439,658 plus $19,717 for wheel tips, less $110,000 trade-in for City’s 1993 Caterpillar Model 826C, No. B2458, plus no charge for 5 year/7500 hr extended warranty).

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(c) 1997 City of Vancouver