A6 ADMINISTRATIVE REPORT Date: May 10, 1995 Dept. File No. H764-1 TO: Vancouver City Council FROM: General Manager of Engineering Services SUBJECT: Comfort Station Contracts 1995 RECOMMENDATION A. THAT Council approve, without tender, awarding the contracts for the operation of the City's two comfort stations to selected qualified Operators on the basis of historic rates adjusted annually on a negotiated basis but with increases not to exceed those awarded under the provisions of the V.M.R.E.U. contract B. THAT the General Manager of Engineering Services be authorized to negotiate the contract each year with the incumbent Operator, if continuation of his/her services is mutually agreeable, or to recruit a suitable replacement, under the established contract provisions, from the local community served. C. THAT the Director of Legal Services be authorized to prepare and execute new agreements with the present Operator, Mr. Gerald London, for the period April 1, 1995 to December 31, 1995, inclusive on the basis of the appropriate rates for this period. 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. There is no specific Council policy on tendering procedures but contracts in excess of $50,000 are generally open to public tender. PURPOSE This report seeks Council approval for the continuation of the practice of awarding the contracts for the City's two comfort stations outside of the normal public tender process. BACKGROUND Engineering Services administers the City's two Comfort Stations. They are located at Hamilton and Hastings and at Main and Hastings and were opened in 1922 and 1923 respectively. Historically, the Comfort Stations have been operated under contract by people familiar with the community they serve. The normal tendering process has never been followed in the award of these contracts. Instead, new Operators have been recruited from existing comfort station staff and annual extensions or new appointments have been approved through Manager's Minutes. Increases have been negotiated annually with the Operator but have been limited to wage increases under the provisions of the City's V.M.R.E.U. contract. This process has provided the City with a certain degree of service level continuity when individual Operators retired or were no longer available and has resulted in a high level of commitment on the part of the Operators, and acceptable wage rates. In the late 1993, the Operator, Mr. Bill Smith, passed away suddenly. At that time Mr. Smith's assistant, Mr. Gerald London, took over the operation under an interim agreement. He has proven to be a capable Operator over the interim period and has indicated that he wishes to continue with the present operation. He has also indicated that he would undertake the contract at no increase. As the present contract award process is not in strict compliance with the normal tendering procedures, it was felt that it should be reviewed and put forward for Council endorsement. DISCUSSION The present agreement provides for the following monthly rates, including net GST: Station 1994 Contract Location Rate/Month #1 - Hamilton & $ 6,130.48 Hastings #2 - Main & $ 6,130.48 Hastings The agreement provides that the Contractor/Operator must pay the attendants 4% vacation pay and pay the employer's share of Unemployment Insurance and the Canada Pension Plan, as well as the Worker's Compensation Board assessments on the total of all wages. In order to keep the stations open a minimum of 12 hours daily, the Contractor/Operator must hire a minimum of three (3) part-time attendants. The Contractor also supplies the needed brushes and brooms. The City supplies paper towels, toilet paper, soap, utilities and provides building maintenance. The present hourly rate stipulated for the operator is $10.75 per hour, and for the attendants $7.65 per hour. Attendants are generally from the local community who care about the facility operation. This process offers them an employment opportunity that may not otherwise be available to them. In effect, the existing award process helps to ensure that the comfort stations provide physical and social benefits in tune with the community they serve. It is felt that a formal tender process would introduce restrictions on our ability to maintain the local pride and commitment to neighbourhood service we have enjoyed to date. * * * * *