ADMINISTRATIVE REPORT

Date: October 7, 2002
Author/Local: L.Syvertsen/7256

RTS No. 03013

CC File No.1805

Council: October 22, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Materials Management
SUBJECT:	Award of Tender PS02044 - Supply and Delivery of De-icing Salt

RECOMMENDATION

THAT Council accept the low bid meeting specifications and offering best value from Mainroad Contracting Ltd. for the supply and delivery of de-icing salt as, if and when required for a 36-month period from the date of the purchase order, with the option to extend the contract for one or two 12-month periods, at an estimated three (3) year cost of $747,450.00 plus the GST (less any municipal rebate received) and PST (where applicable).

COMMENTS

On April 7, 1998, Council approved the continued use of road salt for de-icing purposes.

POLICY

The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the highest value based on quality, service and price.

Contracts with a value over $300,000.00 are referred to Council.

BACKGROUND

Tenders for the supply and delivery of de-icing salt were opened by the City Clerk on September 18, 2002 and referred to the General Manager of Engineering Services and the Manager of Materials Management for report.

The 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax are in addition to all prices shown in this report and in the tabulation.
The tender called for the supply of de-icing salt, delivered and unloaded at any or all of several locations within the City of Vancouver as, if and when required for a 36 - month period from the date of the purchase order. An option exists to extend the contract for an additional one (1) or two (2) 12-month periods subject to mutual agreement between the City and the contractor. The contract allows price adjustments, if required, at each 12-month anniversary date of the contract. Adjustments are not to exceed the Statistics Canada Consumer Price Index for Vancouver

Historical distribution of salt to the various locations within the City of Vancouver has shown Cambie Yard as the primary delivery location. The estimated price in this report is based on 13,500 tonnes of salt, an average of 4,500 tonnes a year, delivered to the City's Cambie Yard for the first year and the new National Yard, which is scheduled to open in fall 2003, for year 2 and 3. Previous quantities have varied from zero to 14,000 tonnes per year depending on winter conditions and the contract value will fluctuate accordingly. The contract has pricing for other City yards in the event that minor quantities are required at other locations thoughout the City.

Two bids were received with prices as shown below.

Bid No.	Vendor	Material plus delivery and unloading based on delivery to Cambie Yard for year 1 of the contract and delivery to National Yard for years 2 and 3 of the contract.
1	Mainroad Contracting Ltd.	$747,450.00
2	McTar Petroleum Products Ltd.	$749,250.00

Bid No 1 from Mainroad Contracting Ltd is low bid meeting specifications and delivery requirements.

FINANCIAL IMPLICATIONS

Funding is available from the Engineering Operating budget.

CONCLUSION

Accordingly, we are recommending the acceptance of the low bid from Mainroad Contracting Ltd for the supply of de-icing salt as, if and when required for a 36-month period from the date of the purchase order, with the option to extend the contract for one or two 12-month periods, at an estimated total cost of $747,450.00.

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(c) 1998 City of Vancouver