ADMINISTRATIVE REPORT

                                                               May 25, 1995


   TO:       Vancouver City Council

   FROM:     General Manager, Engineering Services and 
             City Purchasing Agent

   SUBJECT:  Contract Extension - Contract No. 57-93-08
             Supply and Delivery of Waterworks Gate Valves


   RECOMMENDATION

        THAT Council approve  the extension  of the  contracts to  Grinnell
        Corporation and Terminal City  Iron Works Ltd., for the  supply and
        delivery  of waterworks  gate  valves, for  an additional  12-month
        period,  at  annual  estimated   costs  of  $144,393  and  $281,627
        respectfully,  plus  the  7%  Goods  and  Services  Tax  (less  any
        municipal rebate received) and the Provincial Sales Tax.


   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

   On July  27,  1993,  Council  awarded  12-month  contracts  to  Grinnell
   Corporation  and Terminal  City  Iron Works  Ltd.,  for the  supply  and
   delivery  of  waterworks  gate  valves, at  annual  estimated  costs  of
   $144,393 and  $260,380, plus  the 7%  Goods and  Services Tax (less  any
   municipal rebate received) and the Provincial Sales Tax.

   The contract  provides for two  12-month extensions by  mutual agreement
   between  the City and the contractor. On June 23, 1994, Council approved
   the first 12-month extension with a 4% price increase to Terminal City.
   Grinnell  Corporation  has  agreed  to extend  their  contract  portion.
   Terminal City has  offered to extend  their contract  portion with a  4%
   price increase in order to offset rising local scrap  metal prices. This
   increase  is considered reasonable.  All other terms  and conditions, as
   set out in the contract, remain unchanged.

   Considering that Grinnell Corporation and  Terminal City Iron Works Ltd.
   have been satisfactory suppliers,  it is recommended that  the contracts
   be extended for an additional 12-month period.





                           *     *     *     *     *