Title
Resolution to Approve the Purchase of Ice Control Salt through the Michigan Delivering Extended Agreements Locally (MIDEAL) from Detroit Salt Company for Seasonal Backup Supply ($192,320.00) and to Appropriate $119,970.00 from the Central Stores Fund Balance (8 Votes Required)
Memorandum
Attached for your approval is a resolution to purchase ice control salt for the upcoming winter season and to appropriate funds from the unobligated central stores fund balance.
The City uses Ice control salt to control snow and ice accumulations on City streets. 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.
The Public Works Unit of Public Services utilizes electronically-calibrated spreader controls on all its 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.
The State solicits an annual bid for bulk ice control salt, allowing participating local governments 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 the seasonal backup supply. The price of seasonal backup ice control salt increased from $35.11 (last season) to $47.83 (this season). The 36% increase is attributable to the increased demand from last winter.
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. In January 2009, the market rate reached $140.00/ton. This rate is based on supply...
Click here for full text