Title
Resolution to Approve the Purchase of Ice Control Salt through the Michigan Delivering Extended Agreements Locally (MiDeal) from Detroit Salt Company
($270,994.00)
Memorandum
Attached for your approval is a resolution to purchase ice control salt for the upcoming winter season. Ice control salt is used during the winter season to control snow and ice accumulations on City streets. Last year the City applied over 3,593 tons of salt during the winter season. The City used 7,011 tons of salt during the 10/11 season, 4,882 tons of salt during the 09/10 season, 6,632 tons during the 08/09 season, and 8,500 tons during the 07/08 season.
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 bulk salt and seasonal back-up supplies. The Detroit Salt Company was the low bidder.
Detroit Salt Company - 1,700 tons at $39.47/ton - $ 67,099.00 Early Fill
Detroit Salt Company - 4,500 tons at $45.31/ton - $203,895.00 Seasonal Backup
With 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 70% of the contracted quantity. If we need more than 130% we will pay the market rate. In January of 2009 the market rate reached $140.00 per ton. This rate is based on supply and demand and most road salt used in Michigan is imported from other areas such as Ontario, Cleveland or Chile.
The Field Operations Unit of Public Services utilizes calibrated spreader controls attached to all snow removal equipment. These controls regulate the amount of salt being spread and usage is tracked for inventory purposes. With this type of equipment, we are able to minimize salt usage and comply with the City policy of using the least amount of salt consistent with traffic safety.
Sufficient funds for this purchase are budgeted within the Public Services Area Major a...
Click here for full text