Title
Resolution to Approve an Increase to the Purchase Order to Detroit Salt Company for Ice Control Salt and to Appropriate Funds ($47,200.00) (8 Votes Required)
Memorandum
We request your approval to increase the purchase order to Detroit Salt Company by $47,000.00 for the purchase of seasonal back-up ice control salt. Ice control salt is used during the winter season to control snow and ice accumulations on City streets.
On October 21, 2013, City Council approved R-13-322 authorizing the purchase of 4,100 tons of seasonal backup ice control salt utilizing the annual State of Michigan's MIDEAL. This contract allows the City to purchase up to an additional 30% of the original contracted amount.
The Field Operations Unit of Public Services utilizes electronically calibrated spreader controls, attached to all snow removal equipments. These controls regulate the amount of salt being spread and allow the City to minimize salt usage and comply with the City policy of using the least amount of salt consistent with traffic safety. Despite this practice the many snow events and the salt usage for this year's season require us to exercise this option of the contract.
Field Operations expect this additional supply will satisfy the season's requirements. Should the City require additional material, material would need to be procured on the open market. If necessary, we would return to Council for approval of the additional purchase. As a point of reference, in January of 2009 the market rate reached $140.00 per ton.
The annual budget is prepared for the average winter season; therefore, an appropriation from the Major and Local Street Funds is necessary to fund this purchase. Adequate Fund balances are maintained within these funds to address these types of circumstances.
Staff
Prepared by: Kirk Pennington, Field Operations Supervisor, Jody Caldwell, Field Operations Unit Manager
Reviewed by: Craig Hupy, Public Services Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, The City uses ice control salt on major and local streets during the winter months in response to snow and ice accumulation, with care given to achieving a balance between traffic safety and environmental effects;
Whereas, On October 21, 2013 City Council approved a purchase order to Detroit Salt Company for seasonal backup ice control salt in the amount of $148,543.00;
Whereas, The MIDEAL contract allows the purchase of an additional 30% of the original contracted amount;
Whereas, Current authorized purchases have been exhausted prior to the end of the snow season; and
Whereas, Sufficient funds are available in the Public Services Area Major and Local Street Fund Balances;
RESOLVED, That $35,250.00 be appropriated from the Major Street Fund Balance;
RESOLVED, That $11,750.00 be appropriated from the Local Street Fund Balance;
RESOLVED, That City Council approve an increase of $47,000.00 to the Detroit Salt Company purchase order for the purchase of seasonal back up supply ice control salt, for a total amount for of $195,543.00; and
RESOLVED That Council authorize the City Administrator to take the necessary administrative actions to implement this resolution.