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HomeMy WebLinkAboutFIN-07-112 - City of Guelph Ref No 07-063 - Highway Coarse Salt Report To: Mayor Carl Zehr & Members of Council Date of Meeting: 2007-10-22 Prepared By: Larry Gordon Date of Report: 2007-10-16 Report No: FIN 07-112 Subject: City of Guelph Ref. No. 07-063 - Highway Coarse Salt RECOMMENDA TION That the City of Kitchener's portion of the City of Guelph's tender Ref. No. 07-063, Highway Coarse Salt, be awarded to Sifto Canada Inc., Mississauga, Ontario for a four-year term at the estimated annual cost of $783,836.54, plus P.S.T. and G.S.T., with an option to renew for one (1) additional year. BACKGROUND This is a co-operative tender issued by the City of Guelph on behalf of the Guelph Co-operative Purchasing Group (GCPG) and the Co-operative Purchasing Group of Waterloo Region. Participants included the City of Cambridge, City of Guelph, Guelph Eramosa Township, City of Kitchener, Township of North Dumfries, City of Waterloo, the Regional Municipality of Waterloo, Township of Wellesley, County of Wellington, Wilmot Township, Town of Erin, Ridgetown College, University of Guelph and the University of Waterloo. REPORT Tenders were requested from three (3) potential bidders and advertised on the Ontario Public Buyers Association Electronic Tendering Information System. By the closing date of August 1 st, 2007, two (2) bids had been received. The bid from the Canadian Salt Company Ltd., Pointe-Claire, Quebec was incomplete and rejected. The following tenders were received: Sifto Canada Inc. Canadian Salt Company Ltd. Mississauga, ON Pointe-Claire, QC $783,836.54 * Incomplete The tenders were reviewed by C. Rendell, Purchasing Agent, City of Guelph, on behalf of the Co-operatives. FINANCIAL IMPLICATIONS Salt is an inventory item and is charged to various index codes as used. The price has increased 10% over the 2004 tendered price, however the total estimated cost is lower based on reduced salt usage. The annual price increase will be based on the Consumer Price Index. Larry Gordon Director of Purchasing