August 25, 1998
To:Works and Utilities Committee
From:Chief Financial Officer and Treasurer, Commissioner of Works and Emergency Services
Subject:Purchase of Bulk Common Course Rock Salt (Road Salt)
Purpose:
The purpose of this report is to advise the Committee of the results of the tender issued for the supply and delivery of bulk
common coarse rock salt, used for de-icing road surfaces for the 1998-99 winter season and to request authority to award a
contract to the recommended bidders.
Source of Funds:
Funds are available in the appropriate accounts for this project.
Recommendations:
It is recommended that:
(1)the tenders as noted below for the supply and delivery of approximately 130 866 tonnes of bulk common coarse rock
salt, used for de-icing road surfaces for the 1998-99 winter season, in accordance with specifications, be accepted, being the
lowest tenders received:
a) Sifto Canada Limited for approximately 25 633 tonnes for the Etobicoke District in the amount of $1,248,254.28
including Goods and Services Tax, Ontario Retail Sales Tax and all other charges and;
b)The Canadian Salt Company Limited for approximately 105 233 tonnes for the Toronto Core, North York/York, and
Scarborough/East York Districts in the amount of $5,364,586.09 including Goods and Services Tax, Ontario Retail Sales
Tax and all other charges;
(2)the appropriate officials be authorized to complete the necessary contract documents.
Council Reference/Background History:
The Bid Committee, at its meeting held on July 29, 1998, opened the following tenders for the supply and delivery of bulk
common coarse rock salt, used for de-icing road surfaces for the 1998-99 winter season.
Tender Number 77-1998
Tenderers
Price Per Tonne, Exclusive of all Taxes
Scarborough/North York/Etobicoke Toronto (Core)
East York York DistrictDistrict District
District
A-Stockpiling Shipments - (bulk deliveries to fill salt domes)
to be shipped between October 15, 1998 and November 21, 1998
The Canadian Salt Company $44.34 $43.09 $44.34 $44.34
Limited
Sifto Canada Incorporated No bid No bid $41.50 No bid
Cargill Salt $46.58 $46.58 $46.58 $46.58
B- Additional Shipments - ( for delivery as and when required)
to be shipped between November 22, 1998 and April 30, 1999
The Canadian Salt Company $45.09 $43.84 $45.09 $45.09
Limited
Sifto Canada Incorporated No bid No bid $42.50 No bid
Cargill Salt $47.58 $47.58 $47.58 $47.58
Above prices are subject to 8% Ontario Retail Sales Tax and 7% Goods and Services Tax
One deterrent to bidding on this annual tender which has been identified by potential suppliers of this commodity is the
large volume of the City of Toronto requirement. It was determined that by dividing the City into four districts, additional
competition could result in lower prices. The dividing of the City into four districts resulted in an additional supplier being
able to bid on one part of the requirement. The district boundaries were selected for the purpose of establishing a basis to
obtain competitive bids for this commodity.
A comparison of the low price for each district against the pricing received last year is as follows:
| District |
1998 Price per
tonne excluding all
taxes |
1997 Price per tonne
excluding all taxes |
Difference |
%
Difference |
| Etobicoke |
A$ 41.50
B$ 42.50 |
A$ 43.09
B$ 43.84 |
$-1.59
$-1.34 |
-3.6
-3.0 |
| North York/York |
A$ 43.09
B$ 43.84 |
A$ 43.09
B$ 43.84 |
Nil
Nil |
Nil
Nil |
| Scarborough/East York |
A$ 44.34
B$ 45.09 |
A$ 43.09
B$ 43.84 |
$ 1.25
$ 1.25 |
2.9
2.8 |
| Toronto (Core) |
A$ 44.34
B$ 45.09 |
A$ 43.09
B$ 43.84 |
$ 1.25
$ 1.25 |
2.9
2.8 |
A-Stockpiling Shipments
B-Additional Shipments
The low bid in the Etobicoke district from Sifto Canada Limited can be attributed to competition in the market price in that
Sifto, who was unable to bid on previous tenders for the former City and Metro Toronto due to the large volume of the
requirement, submitted the lowest priced bid. Sifto has advised that presently, they do not have the capacity to service more
than one district and determined that they could only guarantee supply at this time to one district. They advise that they are
expanding, and hope to bid on all districts next year.
The low bid for the other three districts is offered by the Canadian Salt Company Limited. In the North York/York District,
the pricing is unchanged from 1997. The price increase in the Scarborough/East York and Toronto (Core) Districts is less
than that experienced this year by the following municipalities: Burlington/Halton (9.8%),Cambridge/Kitchener (7.4%),
Durham Region (4.2%) and York Region (4%). Further rationalization of yard operations in the Works and Emergency
Services Department may allow for additional efficiencies in the delivery and pricing of this commodity being achieved in
future years.
Comments and/or Discussion and/or Justification:
The Tender documentation submitted by the recommended bidders have been reviewed by the Commissioner of Works and
Emergency Services and were found to be in conformance with the Tender requirements.
The Manager, Fair Wage and Labour Trades Office has reported favourably on the firms recommended.
Conclusion:
This report requests authority to award contracts and for the appropriate officials to complete the necessary contract
documents for the supply and delivery of bulk common coarse rock salt, used for de-icing road surfaces for the 1998-99
winter season in accordance with specifications to the lowest bidders, Sifto Canada Incorporated to the Etobicoke District
in the amount of $1,248,254.28 including Goods and Services Tax and Ontario Retail Sales Tax and The Canadian Salt
Company Limited to the Scarborough/East York, North York/York, and Toronto (Core) Districts in the amount of
$5,364,586.09 including Goods and Services Tax and Ontario Retail Sales Tax.
Contact Name:Contact Name:
L.A. PaganoB. Mason
DirectorManager, West District
Purchasing and Materials ManagementTransportation Services
Telephone: 392-7312Telephone: 392-5640
W.A. LiczykB. H. Gutteridge
Chief Financial Officer and TreasurerCommissioner
Works and Emergency Services
