ADMINISTRATIVE REPORT


                                                       Date: July 23, 1996 
                                                       File No. Crep056.wpd

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services and 
             Manager of Purchasing Services

   SUBJECT:  CONTRACT EXTENSION 
             CONTRACT NO. 58-95-07 - SUPPLY OF DE-ICING SALT


   RECOMMENDATION

        THAT Council approve the extension of the contract  to McTar
        Petroleum  Co. Ltd., for the supply of de-icing salt, for an
        additional 12-month  period at  an annual estimated  cost of
        $232,155,  plus the  7%  Goods and  Services  Tax (less  any
        municipal rebate  received) and  the  Provincial Sales  Tax,
        where applicable.

   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.

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

   DISCUSSION

   On  October 17,  1995,  Council awarded  a  12-month contract  to
   McTar Petroleum Co. Ltd., for the supply of de-icing  salt, at an
   annual  estimated cost of $232,155 plus the 7% Goods and Services
   Tax (less any municipal rebate received) and the Provincial Sales
   Tax, where  applicable.  This estimate  is  based on  an  average
   season.  Previous  quantities have  varied  from  zero to  14,000
   tonnes, so that the total cost could range as high as $722,261.

   The  contract  provides for  two  12-month  extensions by  mutual
   agreement  between the City and the contractor. This is the first
   extension.

   The above contractor has  agreed to extend for a  12-month period
   under  the existing  terms  and conditions,  as  set out  in  the
   contract.

   Considering   that  McTar   Petroleum  Co.   Ltd.,  has   been  a
   satisfactory  supplier, it  is recommended  that the  contract be
   extended for an additional 12-month period.


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