ADMINISTRATIVE REPORT

Date: December 15, 1999
Author/Local: Jim Lloyd
RTS No. 01193

CC File No. 1805

Council: January 11, 2000

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	CONTRACT EXTENSION - SUPPLY AND DELIVERY OF MINERAL AGGREGATES (LANDFILL)

RECOMMENDATION

That Council approve the extension of Contract No. 58-98-04 to Columbia Bitulithic Ltd., for the supply and delivery of mineral aggregates (landfill), for an additional 12-month period with a $.25 per metric tonne price increase at an annual estimated cost of $437,100, 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.

DISCUSSION

On December 9, 1997, Council awarded a 12-month contract to Columbia Bitulithic Ltd., for the supply and delivery of Mineral Aggregates (landfill), at an annual estimated cost of $427,600 plus the 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax, where applicable.

The contract provides for two 12-month extensions by mutual agreement between the Cityand the contractor. Council approved the first extension on January 5, 1999.

Columbia provides the City with recycled demolition material such as crushed concrete for the construction of roads at the landfill. The City prefers recycled material in keeping with our overall objectives of reusing or finding alternative uses for waste material.

Columbia requested a $.25 per metric tonne price increase in order to extend this contract. This represents a 2.2% increase, or an estimated $9,500, on the overall estimated contract amount.

The increase is considered reasonable due to increased transportation costs and environmental requirements within the aggregate industry. No price increases were granted in last year’s extension and even with the increase, Columbia’s prices are still lower than the other bids from the original 1998 tender. All other terms and conditions remain the same.

Considering that Columbia Bitulithic Ltd., has been a satisfactory supplier, it is recommended that the contract be extended for an additional 12-month period with a price increase of $.25 per metric tonne.

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(c) 1998 City of Vancouver