Partnership Negotiations with Richmond

ADMINISTRATIVE REPORT
Date: September 22, 1997
Dept. File No.
CC File No. 1756
TO: Vancouver City Council
FROM: General Manager of Engineering Services
SUBJECT: Partnership Negotiations with the Municipality of Richmond
RECOMMENDATION
THAT Council authorize the General Manager of Engineering Services to pursue financial partnerships, with the Municipality of Richmond and others, for asphalt supply and report back to Council for final approval.
COUNCIL POLICY
On August 1, 1996, Council approved the acquisition of 900 East Kent Avenue Site as a superior site for the primary use as an Aggregate Handling and Asphalt Plant Operation.
On June 26, 1997, Council approved a project budget of $13,306,000 for the construction of an Aggregate Handling and Asphalt Plant operation, at 900 East Kent Avenue.
PURPOSE
To authorize the Manager of Engineering Services to pursue a partnership agreement with Municipality of Richmond, (Richmond), and others, for a capital contribution for the new Asphalt Plant in exchange for asphalt supply.
BACKGROUND
Staff have had preliminary discussions with a number of municipalities regarding the possibility of a partnership arrangement for asphalt supply, which would reduce City costs and provide asphalt to other municipalities at lower rates than they currently pay. Richmond has expressed interest in such a partnership.
DISCUSSION
Staff have had preliminary discussions with the City of Richmond, who are interested in partnering and cost sharing in the new Aggregate Handling and Asphalt Plant Facility. Such a partnership could result in a reduction of up to $1.0 million to the capital required by the City. Richmond would then receive, at cost, an annual quantity of asphalt relative to their capital contribution.
Council authorization to pursue partnership arrangements with other municipalities and begin negotiating a partnership agreement with Richmond is recommended.
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