ADMINISTRATIVE REPORT

Date: December 08, 1998
Author/Local: Jim Lloyd/7257
RTS No. 406

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	Contract Extension - Contract No. 58-98-02 Supply and Delivery of Mineral Aggregates

RECOMMENDATION

THAT Council approve the extension of the contract for the supply and delivery of mineral aggregates to Lafarge Canada, Pitt River Quarries, Mainland Sand & Gravel, with a 2% price increase, and to Allard Contractors at the same price, on a month to month basis but not to exceed a 12-month period, at annual estimated costs of $2,004,357, $182,674, $101,333 and $28,860, respectively, plus the 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax, where applicable.

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 February 3, 1998, Council awarded a 12-month contract to Lafarge Canada, Pitt River Quarries, Mainland Sand & Gravel, and Allard Contractors, for the supply and delivery of mineral aggregates, at annual estimated costs of $1,965,056, $179,093, $99,347, and $28,860 respectively.

The 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax, where applicable, are in addition to all prices in this report.

The contract provides for two 12-month extensions by mutual agreement between the City and the contractor and allows for price adjustments.

Deliveries for this contract are to Cambie Yards with a provision that prices be renegotiated when the City’s aggregate stockpile is moved to the new Kent Avenue facility. This move is now anticipated to occur in June 1999. The extension will be on a month to month basis not exceeding a 12-month period in the event unforeseen circumstances delay the new facility.

When the new facility opens, an interim period will be allowed to give the City and contractors/industry experience with the new facility. New bids will be solicited after the City is comfortable that any operational issues at the new facility have been addressed.

The City offered an extension to the contractors based on the above information. Lafarge Canada, Pitt River Quarries, and Mainland Sand & Gravel all requested varying price increases to offset increased environmental, labour and transportations costs. These firms decreased their original price increase requests and agreed to accept the City’s offer of a two percent increase. Allard Contractors agreed to extend their small portion of the contract without requesting a price increase. All other terms and conditions remain unchanged except as listed above.

Considering that Lafarge Canada, Pitt River Quarries, Mainland Sand & Gravel, and Allard contractors have been satisfactory suppliers, it is recommended that their contracts be extended on a month-to-month basis but not to exceed a 12-month period as outlined in the report.

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(c) 1998 City of Vancouver