Title
Resolution to Approve an Increase to the Purchase Order to Detroit Salt Company for Additional Ice-Control Salt ($42,932.00)
Memorandum
City Council approval is requested to increase the purchase order for Detroit Salt Company by $42,932.00 for the purchase of seasonal backup ice-control salt.
On September 18, 2017, City Council approved R-17-348 authorizing the purchase of 4,000 tons of seasonal backup ice-control salt using the Michigan extended purchasing program (MiDEAL). The contract allows the City to purchase an additional 30% of the original contract tonnage. The City wishes to purchase this additional capacity to ensure adequate salt supply for the remainder of the season.
Budget/Fiscal Impact
Sufficient funds for this additional purchase are available within the appropriate approved FY18 Public Services Area Operation and Maintenance Budgets.
Annually, the State of Michigan solicits a statewide bid for bulk ice-control salt, allowing participants to receive advantageous pricing. Detroit Salt Company was the low bidder for the seasonal backup supply.
Seasonal Backup - 1,200 tons at $35.11/ton - + $800.00* for truck loading variances $42,932.00
* Due to the difficulty of loading trucks to the exact tonnage ordered, we are seeking an additional $800.00 above the quantity requested to be able to pay the vendor, Detroit Salt, if overloading should occur on the early fill.
Staff
Prepared 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 spaces during the winter months in response to snow and ice accumulation, with care given to achieving a balance between traffic safety and environmental impacts;
Whereas, On September 18, 2017, City Council approved R-17-348 authorizing the purchase of 1,000 tons of early fill and 4,000 tons of seasonal backup ice-control salt in the amount of $173,160.00;
Whereas, The MiDEAL contract allows the purchase of an additional 30% of the original contracted tonnage;
Whereas, Current authorized purchases have been exhausted prior to the end of the snow season;
Whereas, Detroit Salt Company is an approved vendor of the State of Michigan and complies with the City’s Non-Discrimination Ordinance; and
Whereas, Sufficient funds for this additional purchase are available the appropriate approved FY18 Public Service Area Public Services Area Operation and Maintenance Budgets;
RESOLVED, That City Council approve an increase of $42,932.00 to the Detroit Salt Company purchase order for the purchase of seasonal back up supply ice-control salt, for a total amount of $216,092.00; and
RESOLVED That Council authorize the City Administrator to take the necessary administrative actions to implement this resolution.