Finance & Administrative Committee
	TO:	Mayor and Members of Council
	FROM:	Paul Ingham, General Manager, Operations Claire Graham, Senior Buyer
	PREPARED BY:	Claire Graham
	DATE OF MEETING:	2004-Aug-30
	SUBJECT:	Supply and Delivery of Gasoline and Diesel Fuel (Item 3 Part A B20 Bio-Diesel Fuel)

RECOMMENDATION:

THAT the report entitled, Supply and Delivery of Gasoline and Diesel Fuel (Item 3 Part A B20 Bio-Diesel Fuel) be received;

AND THAT item 3 Part A (Supply & Delivery of B20 Bio-diesel Fuel) tender 228-T-03, Supply and Delivery of Gasoline and Diesel Fuel, York Region Buyers Co-operative CT-03-11 be awarded to the lowest acceptable bidder, Bio-Diesel Canada Inc.

AND THAT the term of the contract shall be for one (1) year commencing May 1, 2004 with an option to renew for two additional one year periods subject to satisfactory performance and approval of the Region of York and the participating members of the Co-op.

AND THAT the Director of Operations and Asset Management and the Director of Financial & Client Services be authorized to extend the contract for an additional two one year terms at a unit price to be mutually agreed upon with the vendor and York Region;

AND FURTHER THAT funds are provided for within the Operations Department’s Operating Account 750 752 4307 (Bio Diesel) in the amount of $15,000 inclusive of all taxes.

PURPOSE:

The purpose of this report is to obtain approval to award Item 3 of Part A for the Supply & Delivery of B20 Bio-Diesel Fuel.

BACKGROUND:

Council, at its meeting held on April 27, 2004, deferred the award of item 3 of Part A of tender 228-T-03 for the Supply and Delivery of Gasoline and Diesel Fuel, York Buyers Co-operative CT-03-11 and referred to staff to report back on the possibility of using plant-based Bio-diesel fuel.

OPTIONS/DISCUSSION:

Staff has completed their investigation of bio-diesel fuel products and through their research is satisfied that the composition of the bio-diesel fuel produced by Bio-Diesel Canada Inc. will pose no threat to human health. The supplier has confirmed that their bio-diesel fuel product is manufactured from recycled restaurant oils which consist of 99.9% vegetable oil and that they do not use any rendered animal fats. This conclusion is supported by the substantiating documents included in this award report.

FINANCIAL CONSIDERATIONS:

Staff recommend that item 3 of Part A (Supply & Delivery of B20 Bio-Diesel Fuel) tender 228-T-03, for the Supply and Delivery of Diesel Fuel, York Region buyers Co-operative CT-03-11 be awarded to the lowest acceptable bidder, Bio-Diesel Canada Inc. The award is based on an estimated annual amount totalling $15,000.00 inclusive of all taxes for a term of one (1) year commencing May 1, 2004 with an option to renew for two additional one-year periods subject to satisfactory performance and approval of the Region of York and the participating members of the Co-op.

It is recommended that the Director of Operations and Asset Management and the Director of Financial & Client Services be authorized to extend the contract for an additional two one year terms at a unit price to be mutually agreed upon with the vendor and York Region.

Funds are provided for within the Operations Department’s Operating Account 750 752 4307 (Bio Diesel) in the amount of $15,000 inclusive of all taxes.

ENVIRONMENTAL CONSIDERATIONS

It is the intention of the Fleet Department to increase the use of Bio Diesel in more units during 2004 to further promote a “Green Fleet” reducing Green House gases.

Peter Loukes, Director, Operations and Asset Management

Jim Sales, Commissioner, Community and Fire Services

Q:\Finance and Administration\Finance\Purchasing\2003 File Management\Contract Management\228-T-03 Supply, Delivery of Gasoline, Diesel Fuel, Furnace Oil Co-op Tender CT-03-11\Award Report 228-T-03 Item 3 Part A Supply & Delivery of Bio-diesel Fuel.doc