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		August 20, 1999 To:Works Committee From:Chief Financial Officer and Treasurer Commissioner of Works and Emergency Services Subject:Purchase of Bulk Common Coarse 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 1999-2000 winter season and to request authority to award a contract to the recommended bidders. Sources of Funds: Funds are available in the appropriate accounts for this requirement. Recommendations: It is recommended that: the tenders noted below for the supply and delivery of approximately 139,390 tonnes of bulk common coarse rock salt, used for de-icing road surfaces for the 1999-2000 winter season, in accordance with specifications, be accepted, being the lowest tenders received: The Canadian Salt Company Limited for approximately 82,830 tonnes for District 1 (Toronto) and District 3 (North York) in the amount of $4,354,783.54 including Goods and Services Tax, Ontario Retail Sales Tax and all other charges; and Sifto Canada Incorporated for approximately 56,560 tonnes for District 2 (Etobicoke) and District 4 (Scarborough) in the amount of $2,659,099.00, including Goods and Services Tax, Ontario Retail Sales Tax and all other charges. The appropriate officials be authorized to complete the necessary contract documents. Council Reference/Background/History: The Bid Committee, at its meeting held on June 30, 1999, opened the following tenders for the supply and delivery of bulk common coarse rock salt, used for de-icing road surfaces for the 1999-2000 winter season. Tender Number 127-1999 Price Per Tonne, Exclusive of all Taxes District 1District 2District 3 District 4 (Toronto)(Etobicoke)(North York) (Scarborough) A - Stockpiling Shipments-(bulk deliveries to fill salt domes) to be shipped between October 15, 1999 and November 21, 1999. Tenderers The Canadian Salt $45.09$45.25$45.25$45.09 Company Limited Sifto CanadaNo Quote$40.50No Quote$40.50 Incorporated Cargill Salt$47.84$47.84$47.84$47.84 B - Additional Shipments -(for delivery as and when required) to be shipped between November 29, 1999 and April 30, 2000 Tenderers The Canadian Salt$45.84$46.00$46.00$45.84 Company Limited Sifto CanadaNo Quote$41.00No Quote$41.00 Incorporated Cargill Salt$48.34$48.34$48.34$48.34 Above prices are subject to 8% Ontario Retail sales Tax and 7% Goods and Services Tax. A comparison of the low price for each district against the pricing received last year is as follows: District1999 price per1998 price per Difference% Difference tonne excludingtonne excluding all taxes all taxes District 1A $45.09A $44.34 $0.75 1.70% TorontoB $45.84B $45.09 $0.75 1.70% District 2A $40.50A $41.50 -$1.00 -2.40% EtobicokeB $41.00B $42.50 -$1.50 -3.50% District 3A $45.25A $43.04 $2.16 5.00% North YorkB $46.00B $43.84 $2.16 4.90% District 4A $40.50A $44.34 -$3.84 -8.70% ScarboroughB $41.00B $45.09 -$4.09 -9.10% A - Stockpiling Shipments B - Additional Shipments The decrease in pricing in the districts 2 and 4 for this commodity for the 1999-2000 contract compared to the 1998-1999 contract is attributed to competition in the market place. In 1998 Sifto Canada Incorporated only submitted a bid on the requirements for one district - Etobicoke - and was the lowest bidder for that district. Sifto advised, at that time, that they did not have the capacity to service more than one district. This year Sifto has bid on an additional district - Scarborough - for which they are also the lowest bidder. Sifto advises that they anticipate submitting a bid on all districts for the 2000-2001 requirement. The increase in pricing in districts 1 and 3 is attributed to increases in transportation costs. Comments and/or Discussions and/or Justification The Tender Documents 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 1999-2000 winter season in accordance with specifications, to the lowest bidders as follows: The Canadian Salt Company Limited for District 1 (Toronto) and District 3 (North York) in the amount of $4,354,783.54 including Goods and Services Tax and Ontario Retail Sales Tax, and Sifto Canada Incorporated for District 2 (Etobicoke) and District 4 (Scarborough), in the amount of $2,659,099.00 including Goods and Services Tax and Ontario Retail Sales Tax. Contact Name:Contact Name: L.A. Pagano, P. Eng.B. Mason Director Manager, West District Purchasing and Materials ManagementTransportation Services Division Telephone: 416 392-7312Telephone: 416 394-5784 W.A. LiczykD. Kaufman Chief Financial Officer and TreasurerGeneral Manager Works and Emergency Services Transportation Services Division B.H. Gutteridge Commissioner Works and Emergency Services
		Please note that council and committee documents are provided electronically for information only and do not retain the exact structure of the original versions. For example, charts, images and tables may be difficult to read. As such, readers should verify information before acting on it. All council documents are available from the City Clerk's office. Please e-mail clerk@toronto.ca.

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