ADMINISTRATIVE REPORT

Date: November 12, 1997

Author/Local: Susanne Siu/7258

CC File No.1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager of Purchasing Services
SUBJECT:	Contract Extension - Contract No. 56-96-01 The Supply of Asphalts - Liquid and Paving (Grade 80-100 and MC250)

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RECOMMENDATION

THAT Council approve the extension of the contract to Imperial Oil for the supply and delivery of Grade 80-100 and MC250 liquid asphalts, as, if and when required, for an additional 12-month period, at an annual estimated cost of $744,649 including the Provincial Sales Tax, where applicable, and the 7% Goods and Services Tax (less the anticipated receipt of the municipal rebate).

COUNCIL POLICY

The policy of Council is to award contract 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.

DISCUSSION

On January 11, 1996, Council awarded a 12-month contract to Imperial Oil, the low bid, for the supply and delivery of liquid and paving asphalts at an annual estimated cost of $744,649 including the Provincial Sales Tax, where applicable, and the 7% Goods and Services Tax (less the anticipated receipt of the municipal rebate).

The contract provides for two 12-month extensions by mutual agreement between the City and the contractor. On December 10, 1996, Council approved the first 12-month extension.

Imperial Oil has agreed to extend the contract for a second and final 12-month period, under the existing terms and conditions, as set out in the contract. Funding for all purchases are provided for in the Asphalt Plant Operating Budget.

Considering that Imperial Oil has been a satisfactory supplier, we recommend extension of the contract for an additional and final 12-month period.

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(c) 1997 City of Vancouver