Title
Resolution to Approve the Purchase of Ice Control Salt through the Michigan Delivering Extended Agreements Locally (MiDEAL) from the Detroit Salt Company LC for Early Fill ($59,860.00) and for Seasonal Backup Supply ($222,000.00)
Memorandum
Attached for your approval is a resolution to purchase bulk ice control salt to control snow and ice accumulations on City streets during the upcoming winter.
Annually, the State of Michigan solicits a state-wide bid for bulk ice control salt, allowing those who participate to receive advantageous pricing. The bid seeks pricing for early fill and seasonal backup supply of ice control salt. Detroit Salt Company was the low bidder for both early fill and the seasonal backup supply.
Early Fill: - 1000 tons at $57.86/ton + $2,000.00* for truck loading variances - $59,860.00
Seasonal Backup - 4000 tons at $55.00/ton + $2,000.00* for truck loading variances - $222,000.00
*Due to the difficulty of loading trucks to the exact tonnage ordered, we are seeking an additional $2000.00 above the quantity requested to be able to pay the vendor, Detroit Salt, if overloading should occur on the early and seasonal backup fills.
As a result of the City using the MiDEAL bid, the quantities are guaranteed. The contract allows the City to purchase up to 130% of the contracted quantity or only 80% of the contracted quantity, as conditions warrant. Should the City need more than 130%, the material cost would be based on the market rate. In January 2009, the market rate reached $140.00/ton. This rate is based on supply and demand. The majority of road salt used in Michigan is imported from other areas such as Ontario, Cleveland or Chile.
The Public Works Unit of Public Services utilizes electronically calibrated controls attached to all salt spreaders and brine application equipment. These controls regulate the amount of salt or brine being applied. Usage is also tracked for inventory purposes. With this type of equipment, the City is able to reduce salt waste during application.
Budget/Fiscal Impact: Sufficient funds for this purchase are available within the appropriate approved FY24 Public Services Area Operation and Maintenance Budgets.
Staff
Prepared by: Alison Heatley, Assistant Public Works Manager
Reviewed by: Paul Matthews, Interim Public Works Manager
Brian Steglitz, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City uses ice control salt on major streets, local streets, and other public spaces during the winter months in response to snow and ice accumulation, with care given to achieving a balance between traffic safety and environmental impacts;
Whereas, Competitive bids were solicited by the state of Michigan for early fill and seasonal backup supply of bulk ice control salt. Detroit Salt Company LC submitted the lowest responsible bid for both early fill and seasonal backup supply;
Whereas, The bid prices are firm through August 31, 2024;
Whereas, Detroit Salt Company LC is an approved vendor of the State of Michigan and complies with the City’s Non-Discrimination Ordinance; and
Whereas, Sufficient funds have been budgeted in the approved operations and maintenance budgets of the Public Service Area for the proposed expenditures;
RESOLVED, That City Council approves a purchase order to Detroit Salt Company LC for the supply of ice control salt for early fill and seasonal backup supply in the amounts of $59,860.00 (1,000 tons @ $57.86/ton + $2,000.00 for truck loading variances for early fill) and in the amount of $222,000.00 (4,000 tons @ $55.00/ton + $2,000.00 for truck loading variances for seasonal backup); and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.