ADMINISTRATIVE REPORT

                                           Date:  June 24, 1997                                           File No.  CREP 078.wpd
                                           CC File No.  1805

   TO:       Vancouver City Council

   FROM:     Manager of Purchasing Services

   SUBJECT:  Co-Operative Purchasing of Gasoline and Diesel Fuels


   INFORMATION

        The Manager of Purchasing Services submits this report for
        INFORMATION.


   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.

   On March 4, 1980, City Council authorized co-operative purchasing "when
   benefits to the City are indicated".

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


   BACKGROUND

   The City of Vancouver annually purchases 6 million litres of diesel and
   gasoline fuel.  Earlier this year, the City was invited to join the
   North Shore Co-operative Purchasing Group (i.e. cities of Burnaby, North
   Vancouver and West Vancouver, and the District of North Vancouver) and
   several other British Columbia municipalities in a multi-municipality
   Request for Proposal (RFP) for gasoline and diesel fuel.

   It was anticipated that Vancouver's 6 million litres would strengthen
   the purchasing power of the group so that all participants would pay   lower prices.

   On February 18, 1997, Council gave the Manager of Purchasing Services
   the authority to negotiate and execute the contract for 1997 with a one
   year extension.


   DISCUSSION

   The following communities participated in the Co-Operative RFP and had
   an estimated collective volume of 20 million litres.

        - City of Vancouver
        - District of West Vancouver
        - City of North Vancouver
        - City of Burnaby
        - City of New Westminster
        - Greater Vancouver Regional District
        - City of Surrey
        - City of Coquitlam        - The Corporation of Delta
        - District of Maple Ridge
        - District of Pitt Meadows
        - City of Port Coquitlam
        - City of Port Moody
        - City of White Rock
        - District of Chilliwack
        - School District #42 (Maple Ridge)
        - School District #36 (Surrey)
        - City of Richmond
        - District of Saanich
        - City of Victoria
        - School District #61 (Victoria)
        - Town of Esquimault
        - Camosun College
        - Greater Victoria Water District
        - Municipality of Oak Bay
        - University of Victoria
        - Capital Regional District
        - District of Central Saanich        - City of Kelowna
        - City of Penticton
        - City of Kamloops

   The RFP closed on April 25, 1997 and six proposals were received.

   After a detailed evaluation of the proposals, it was determined that the
   contract should be awarded to Chevron Canada as it:

        (1)  was the only qualifying vendor willing and able to offer bulk,
             card-lock, retail and marine delivered fuel to the entire
             membership at all locations,

        (2)  was the only qualifying vendor offering to serve all locations
             and provide the price change mechanism requested in the RFP,
             and

        (3)  offered the entire membership (and the City of Vancouver) the
             lowest overall delivered price.
   The estimated annual cost to the City of Vancouver based on prices in
   effect as of April 23, 1997 is $1,591,103 excluding taxes.

   The award has been made for a two-year period commencing June 01, 1997. 
   The Co-operative and the City of Vancouver (subject to Council's
   approval) have the option of extending the agreement for two additional
   one year periods. 


                     *        *        *        *        *