DATE: July 23, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Joe York, Streets Director
Brian Wilcox, Purchasing Manager
SUBJECT:
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Consideration of contract award to Morton Salt, Inc. of Chicago, Illinois in the unit price amount of $75.70 per ton for supply and delivery of an estimated quantity of 462 tons of bulk de-icing rock salt for the Streets Department ($35,000.00 budgeted in 110-83640-43100 for fiscal year 2016; Contract No. 2015-0250) (08/11/15 WS)
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Purpose
The purpose of this procurement is to purchase the supply and delivery of an estimated quantity of 462 tons of bulk de-icing rock salt for clearing roads of snow and ice, expected to be ordered between December 15, 2015 and March 15, 2016. This quantity represents the maximum amount of whole tons of product that may be purchased under the budgeted value of rock salt anticipated by the FY2016 budget, and would serve to replenish the City’s inventory of rock salt during or following the upcoming winter, assuming typical weather conditions.
Background
In keeping with recent practice, staff recommends the City continue utilizing Tennessee statewide contract for this purchase.
Financial Impact
The Tennessee statewide contract for supply and delivery of bulk de-icing rock salt for local governments located within Williamson County for the upcoming winter is in the amount of $75.70 per ton pursuant to the State’s competitive bid process, and was awarded by the State to Morton Salt, Inc. of Chicago, Illinois. The Streets Department Maintenance Division budget for fiscal year 2016 allocates $35,000 out of the General Fund for this purchase. The recommended quantity of 462 tons would result in a total value of $34,973.40. Inasmuch as pricing is based upon full truckloads, the actual quantity and total value would likely be different.
Options
Rather than utilizing Tennessee statewide contract, the City could undertake its own competitive solicitation for bids for this purchase.
Recommendation
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Staff recommends that the City accept, contingent upon Law Department and City Administrator approval of City Contract No. 2015-0250, the quote from Morton Salt, Inc. in the unit price amount of $75.70 per ton for supply and delivery of an estimated quantity of 462 tons of bulk de-icing rock salt, pursuant to Tennessee statewide contract. The Streets Department proposes to purchase 462 tons at this unit price, so the total value of the purchase is estimated to be $34,973.40. Inasmuch as pricing is based upon full truckloads, the actual quantity and total value would likely be different. Purchasing Manager Brian Wilcox concurs with the staff recommendation.