Title
Resolution to Approve the Purchase of Ice Control Salt through the Michigan Delivering Extended Agreements Locally (MiDEAL) from the Detroit Salt Company for Early Fill ($129,380.00) and for Seasonal Backup Supply ($217,200.00)
Memorandum
Attached for your approval is a resolution to purchase 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: - 2000 tons at $64.19/ton + $1000.00* for truck loading variances- $129,380.00
Seasonal Backup - 4000 tons at $54.05/ton + $1000.00* for truck loading variances - $217,200.00
*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...
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