Title
Resolution to Approve the Purchase of Ice Control Salt through the Michigan Delivering Extended Agreements Locally (MIDEAL) from North American Salt Company for Early Fill ($245,556.00) and Detroit Salt Company LLC ($296,661.30) for Backup Supply
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. The City applied 7,582 tons of salt during the 13/14 season, 6,083 tons of salt during the 12/13 season, 7,011 tons of salt during the 10/11 season, and 4,882 tons of salt during the 09/10 season.
Budget/Fiscal Impact:
Sufficient funds for this purchase are budgeted within the approved FY 15 operations and maintenance of the Public Services Area Major and Local Street funds.
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 backup supplies. North American Salt Company was the low bidder for early fill and Detroit Salt Company LLC was the low bidder for backup supply.
North American Salt Company - 3200 tons at $76.58/ton + $500.00* for truck loading errors - $245,556.00 Early Fill
Detroit Salt Company LLC - 5590 tons at $53.07/ton - $296,661.30 Seasonal Backup
*Due to the difficulty of loading trucks to the exact tonnage ordered, we are seeking an additional $500.00 above the quantity requested to be able to pay the vendor, North American Salt Company, if overloading should occur on the early fill.
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 70% of the contracted quantity as conditions warrant. Should the City need more than 130% the cost of material would be based on the market rate. In Januar...
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