Title
Resolution to Approve the Purchase of Ice Control Salt through the Michigan Delivering Extended Agreements Locally (MIDEAL) from Compass Minerals America, Inc. for Early Fill ($161,475.00)
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. The City applied 6,459 tons of salt in the FY18 winter, 4,892 tons of salt in the FY17 winter, 3,794 tons of salt in the FY16 winter, 4,342 tons of salt in FY15, 7,582 tons of salt in FY14 and 6,083 tons of salt during the FY13 winter season.
Budget/Fiscal Impact
Sufficient funds for this purchase are available within the appropriate approved FY19 Public Services Area Operation and Maintenance Budgets.
Annually, the State of Michigan solicits a statewide 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. Compass Minerals America, Inc. was the low bidder for the early fill supply. The price per ton for early fill ice control salt increased from $31.92/ton (last season) to $64.19/ton (this season). The 101% increase is attributable to the increased demand from last winter.
Early Fill: - 2500 tons at $64.19/ton + $1000.00* for truck loading variances- $161,475.00
*Due to the difficulty of loading trucks to the exact tonnage ordered, we are seeking an additional $1000.00 above the quantity requested to be able to pay the vendor, Compass Minerals America, Inc., if overloading should occur on the early fill deliveries.
The Public Works Unit of Public Services utilizes electronically calibrated spreader controls, attached to all snow removal equipment. These controls regulate the amount of salt being applied. Usage is also tracked for inventory purposes. With this type of equipment, the City is able to reduce salt waste during application.
Staff
Prepared by: Paul Matthews, Assistant Manager Public Works
Reviewed by: Molly Maciejewski, Public Works Manager
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City uses ice control salt on major streets, local streets, and other public space during the winter months in response to snow and ice accumulation, giving care to balancing traffic safety and environmental impacts;
Whereas, Competitive bids were solicited by the State of Michigan for early fill and seasonal backup supply of bulk ice control salt;
Whereas, Compass Minerals America, Inc. submitted the lowest responsible bid for early fill supply;
Whereas, The bid prices are firm through August 31, 2019;
Whereas, Compass Minerals America, Inc. is an approved vendor of the State of Michigan and complies with the City’s Non-Discrimination Ordinance; and
Whereas, Sufficient funds have been budgeted in the approved Operation and Maintenance Budgets of the Public Service Area for the proposed expenditure;
RESOLVED, That a purchase order for the supply of ice control salt for early fill bulk supply be authorized to Compass Minerals America, Inc. in the amount of $161,475.00 (2500 tons @ $64.19/ton + $1000.00 for truck loading variances for early fill);
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.