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.

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. On September 10, 1996, Council approved the first 12-month extension.

The above contractor has agreed to extend for an additional 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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(c) 1997 City of Vancouver