Title
Resolution to Approve the Purchase Ice Control Salt through Michigan Delivering Extended Agreements Locally (MDEAL) FY09/10 from Detroit Salt ($43,780.00) and North American Salt ($331,260.00)
Memorandum
Attached is a resolution for your approval for the purchase of ice control salt. Ice control salt is used during the winter season to control snow and ice accumulations on City streets. Last year the City applied 6632 tons of salt during the winter season. The City used 8500 tons of salt during the 07/08 season, 4700 tons during the 06/07 season, 7076 tons during the 05/06 season and 6292 tons during the 04/03 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-up and seasonal back-up supplies. The Detroit Salt Company was the low bid for the early fill up portion of the bid and North American Salt Company was the low bidder for the seasonal back up. Below is an estimate of the City’s purchase. The minimal purchase requirements are 50 tons. 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.
Detroit Salt Company - 1,000 tons - $43.78/ton - $ 43,780.00 total cost
(Early Fill-Up)
North American Salt Company - 6,000 tons - $55.21/ton - $331,260 total cost
(Seasonal Back-Up)
The Field Operations Unit of Public Services utilizes spreader controls that will be attached to all snow removal equipment. These controls regulate the amount of salt being spread and will track usage for inventory purposes. With this type of equipment, we are able to minimize salt usage and comply with the C...
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