Title
Resolution to Approve the Purchase of Ice Control Salt through the Michigan Delivering Extended Agreements Locally (MIDEAL) from the Detroit Salt Company for Early Fill ($54,230.00) and for Seasonal Backup Supply ($235,339.00)
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. The City applied 4,342 tons of salt during the 14/15 season, 7,582 tons of salt during the 13/14 season and 6,083 tons of salt during the 12/13 season.
Budget/Fiscal Impact
Sufficient funds for this purchase are budgeted within the approved FY 16 operations and maintenance budget of the Public Services Area's Major and Local Street funds.
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 was the low bidder for both early fill and the seasonal backup supply.
Early Fill: - 1000 tons at $53.73/ton + $500.00* for truck loading errors - $54,230.00
Seasonal Backup - 4300 tons at $54.73/ton - $235,339.00
*Due to the difficulty of loading trucks to the exact tonnage ordered, we are seeking an additional $500.00 above the quantity requested to be able to pay the vendor, Detroit Salt, if overloading should occur on the early fill.
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 costs of material would be based on the market rate. In January 2009, the market rate reached $140.00/ton. This rate is based on supply and demand and the majority of road salt used in Michigan is imported from ...
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