Title
Resolution to Increase the Amount of the Purchase Order to Morton International Inc. for Ice Control Salt, for FY09 and Appropriate to the Central Stores Expenditure and Revenue Operating Budget ($46,560.00) (8 Votes Required)
Memorandum
We request your approval to increase the purchase order to Morton International, Inc. by $46,560.00 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, in City parks, and in other City facilities lots and grounds.
On October 6, 2008, City Council approved R-08-415 authorizing the purchase of 4,000 tons of seasonal supply ice control salt in the amount of $155,200.00 from Morton International via the Michigan Delivering Extended Agreements Locally (MDEAL) 2008/09 Michigan Road Salt Requisition. Due to the many snow events of this year’s season, we wish to execute the 30% additional supply as provided for in the contract.
In order to achieve traffic safety during future snow events this season, we found it necessary to order additional salt supplies. An authorization for an additional 1,200 tons at $38.80 per ton for a total increase of $46,560.00 is being requested. This will allow us to have the ability to address future needs and have an adequate inventory on hand.
Morton International Inc., received Human Rights approval on September 5, 2008.
Commodities such as ice-control salt are passed through an inventory system established in the Central Stores Fund. We are requesting an increase in the expenditure and revenue budgets in the central stores fund in the amount of $46,560.00. The expenditure will eventually be expensed back to the Major and/or Local Street fund depending on where the salt is placed. This creates an off-setting revenue budget in the central stores fund. We will absorb the additional costs for now and request additional funding for Major and Local streets due to severe winter conditions at the end of the season if appropriate.
Staff
Prepared by: Kirk Pennington, Field Operations Supervisor and Karla Henderson, Field Operations Manager
Reviewed by: Sue F. McCormick, Public Services Area Administrator
Approved by: Roger W. Fraser, 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 6, 2008 City Council approved a purchase order to Morton International Inc. in the amount of $155,200.00 (4,000 tons @ $38.80);
Whereas, Current authorized purchases have been exhausted prior to the end of the snow season;
Whereas, Morton International, Inc. received Human Rights approval on September 5, 2008; and
Whereas, Commodities such as ice-control salt are passed through an inventory system within the Central Stores Fund;
RESOLVED, That City Council approve an increase of $46,560.00 to the Morton International, Inc., purchase order for the purchase of ice control salt, for a total amount for FY 2009 of $201,760.00;
RESOLVED, That the revenue and expenditure budget within the Central Stores Fund be increased by $46,560.00; and
RESOLVED That Council authorizes the City Administrator to take the necessary administrative actions to implement this resolution.