Title
Resolution to Approve the Purchase of Ice Control Salt through the Michigan Delivering Extended Agreements Locally (MiDEAL) from Detroit Salt Company, LC for Early Fill ($184,680.00) and Seasonal Backup Supply ($233,280.00) and Appropriate $168,000.00 (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to purchase bulk 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, LC was the low bidder for both early fill and seasonal backup supply.
Early Fill: - 3000 tons at $60.56/ton + $3,000.00* for truck loading variances - $184,680.00
Seasonal Backup - 4000 tons at $57.57/ton + $3,000.00* for truck loading variances - $233,280.00
*Due to the difficulty of loading trucks to the exact tonnage ordered, we are seeking an additional $3000.00 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. 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.
City Staff suggests approving the 30% overestimate allowable by contract for the Seasonal Backup be approved as a contingency for potential PO increases due to the unpredictability of weather. 1200 tons at $57.57/ton + $1,000.00* for truck loading variances - $70,084.00.
The Public Works Unit of Public S...
Click here for full text