Title
Resolution to Approve the Purchase of Ice Control Salt through the Michigan Delivering Extended Agreements Locally (MIDEAL) from Detroit Salt Company ($245,143.00)
Memorandum
Attached for your approval is a resolution to purchase ice control salt, for the upcoming winter season. Ice control salt is used during the winter season to control snow and ice accumulations on City streets. Last year the City applied 3,593 tons of salt during the winter season. The City used 6,083 tons of salt during the 12/13 season, 7,011 tons of salt during the 10/11 season, 4,882 tons of salt during the 09/10 season, 6,632 tons during the 08/09 season, and 8,500 tons during the 07/08 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 bulk salt and seasonal back-up supplies. The Detroit Salt Company was the low bidder.
Detroit Salt Company - 2,800 tons at $34.50/ton - $ 96,600.00 Early Fill
Detroit Salt Company - 4,100 tons at $36.23/ton - $148,543.00 Seasonal Backup
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 70% of the contracted quantity as conditions warrant. Should the City need more than 130% the cost of material would be based on the market rate. In January of 2009 the market rate reached $140.00 per ton. This rate is based on supply and demand and the majority of road salt used in Michigan is imported from other areas such as Ontario, Cleveland or Chile.
The Field Operations Unit of Public Services utilizes electronically calibrated spreader controls, attached to all snow removal equipment. These controls regulate the amount of salt being spread and usage is tracked for inventory purposes. With this type of equipment, the City is able to minimize salt usage and comply with the City policy of using th...
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