DATE: August 31, 2016
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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Acknowledge Report Of Execution Of Quote From 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 500 Tons Of Bulk De-Icing Rock Salt For The Streets Department ($38,200 Budgeted In 110-83640-43100 For Fiscal Year 2017; Contract No. 2016-0249)
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Purpose
The purpose of this anticipated procurement is to purchase the supply and delivery of an estimated quantity of 500 tons of bulk de-icing rock salt for clearing roads of snow and ice, expected to be ordered between December 15, 2016 and March 15, 2017. This quantity represents the amount of product anticipated by the FY2017 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 2017 allocates $38,200 out of the General Fund for this purchase. The recommended quantity of 500 tons would result in a total value of $37,850. Inasmuch as pricing is based upon full truckloads, the actual quantity and total value would likely be slightly different.
Recommendation
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Pursuant to authority previously granted by the Board of Mayor and Aldermen, Contract No. 2016-0249 has been executed by the City Administrator and is attached. Staff recommends that the Board of Mayor and Aldermen acknowledge receipt of this report of execution for the City of Contract No. 2016-0249, a quote from Morton Salt, Inc. in the unit price amount of $75.70 per ton for supply and delivery of an estimated quantity of 500 tons of bulk de-icing rock salt, pursuant to Tennessee statewide contract.