Report to: General Committee Date of Meeting: October 16, 2006

SUBJECT: Award of Tender 184-T-06 Supply & Delivery of Sodium Chloride (Highway Coarse Rock Salt) York Region Buyers Co-operative CT–06-05

PREPARED BY: Bob Walter, District Manager (East), Ext 4857

Amit Sobti, Senior Buyer, Purchasing, Ext 2239

RECOMMENDATION:

THAT the staff report entitled “Award of Tender 184-T-06 Supply & Delivery of Sodium Chloride (Highway Coarse Rock Salt) York Region Buyers Co-operative CT–06-05” be received;

AND THAT Tender 184-T-06 Supply & Delivery of Sodium Chloride (Highway Coarse Rock Salt) York Region Buyers Co-operative CT–06-05 be awarded to the lowest priced bidder, Sifto Canada Corp. in their unit price of $66.60 per tonne including delivery and inclusive of 8% PST in the estimated annual amount of $865,800.00;

AND THAT the term of the contract shall be for two (2) years commencing from the date of issue of the purchase order with an option to renew for one additional year based on mutual agreement of both parties;

AND THAT the Director of Operations and the Manager of Purchasing be authorized to extend the contract for an additional one year at a unit price to be mutually agreed upon with the vendor and the York Region;

AND THAT the 2006 costs, estimated at $333,018.00 be charged to the Operating Account 700 504 4525 Salt;

AND THAT the following 2007-2008 estimated costs be provided for within the respective years budget submission for the Operations Department;

2007 $865,800.00
2008 (Jan 1 – Apr 30) $532,782.00

AND THAT the 2007 and 2008 Budgets Purchase Orders will be adjusted for growth (increase in kilometers of roadway) based on approved budget for that year;

EXECUTIVE SUMMARY:

Not applicable

FINANCIAL CONSIDERATIONS:

The following table is a summary of the financial considerations for this report:

Original Budget and Account #	$670,393	700 504 4525 Salt
Current Budget Available (unspent)	$343,177
Less Cost	($333,018)	Awarded to Sifto Canada Corp.
Less Contingency
Budget Remaining	$10,159

The total budget in account 700 504 4525 is $670,393.00. Based on the tender award, the estimated cost for salt in 2007 is $865,800.00. The shortfall of $195,407.00 will be discussed during the 2007 budget process.

The following is a price comparison of the low bid with the previous contract:

	2005 – 2006	2006 – 2007	% Increase
Unit Price Per Tonne (Delivered)	$57.93	$66.60	14.96%

Note: Unit Prices are inclusive of PST and exclusive of GST

The % increase has been attributed to the increase in cost of delivery based on fuel escalation.

The award of this tender is being recommended to the lowest priced and acceptable bidder. Staff has reviewed the bid documents and are satisfied that all terms, conditions, bid prices and specifications comply with the Town’s requirements.

BID INFORMATION

Advertised, place and date	Electronic Tender Network (ETN) Daily Commercial News
Bids closed on	May 12, 2006
Number picking up bid documents	3
Number responding to bid	2

DETAILED PRICING INFORMATION

Vendors	Unit Price Per Tonne (Delivered)	Estimated Annual Usage in tonnes	Extended Annual Cost
Sifto Canada Ltd.	$66.60	13,000	$865,800.00
Canadian Salt Co. Ltd.	$71.86	13,000	$934,180.00

Note: Unit Prices are inclusive of PST, exclusive of GST

Sifto Canada Ltd. has submitted the lowest acceptable bid and is therefore recommended. Staff is confident that Sifto Canada Inc. will continue to provide satisfactory services to the Town. Staff has reviewed all bids for accuracy and compliance