Title
Resolution to Approve the Purchase of Ice Control Salt through Michigan Delivering Extended Agreements Locally (MDEAL) FY12 from Morton Salt, Inc. ($128,910.00) and The Detroit Salty Company, LLC ($156,748.00)
Memorandum
Attached is a resolution for your approval for the purchase of ice control salt. Ice control salt is used during the winter season to control snow and ice accumulations on City streets. Last year crews applied 7,011 tons of salt during the winter season. The City used 4,882 tons of salt during the 08/09 season, 8,500 tons of salt during the 07/08 season, 4,700 tons during the 06/07 season, and 7,076 tons during the 05/06 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 salt, bulk salt and seasonal back-up supplies. Morton Salt, Inc. was the low bid for the early fill up portion of the bid and The Detroit Salt Company was the low bid for the seasonal back up. Below is an estimate of the City’s purchases to be made. We have approximately 2700 tons of salt remaining in storage from the prior year and will receive the early fill up during the month of October. The contract allows the City to purchase up to 130% of the seasonal back up contracted quantity or only 70% of the contracted quantity.
Morton Salt, Inc. 3,000 tons $42.97/ton $128,910.00
The Detroit Salt Co., LLC. 3,250 tons $48.23/ton $156,748.00
If the City requires additional quantities beyond the 130%, we would be subject to then current market rates. In January of 2009, the market rate reached $140.00 per ton. Current market rate pricing for ice control salt is approximately $94.00. This rate is based on supply and demand and most road salt used in Michigan is imported from other areas such as Ontario, Cleveland or Chile. Working within our policy for snow and ice control, the City has a successful history of salt usage within our c...
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