Coversheet


City of Marquette, MI 300 West Baraga Avenue Marquette, MI 49855


Agenda Date: 11/27/2023 Consent Agenda Utilization of State Bid for Annual Salt Purchase

BACKGROUND:

Annually, the State of Michigan uses competitive bidding to obtain statewide salt pricing which it then offers to municipalities as part of an extended purchasing program. The City of Marquette will purchase approximately 1,600 tons of early fill salt. The City has an additional 600 tons of back up salt on reserve for FY 23-24. Over the course of the winter, the City will blend the salt with street sand at a ratio of 5 parts sand to 1 part salt. This mixture provides effective winter maintenance ice control and cost containment over using straight salt.

Last year’s prices for early fill and reserve salt were $68.55 per ton and $85.50 respectively. The current year’s prices for early fill and reserve salt are $73.14 per ton and $93.20 respectively. The total dollar amounts under this year’s contract are $117,024 for early fill salt and $55,920 for reserve salt. The contract requires the City to purchase the entire early fill and 70% of the reserve for a total of $156,168, which is within budget.

FISCAL EFFECT:

Salt is charged to inventory when it is purchased. As salt is consumed by local and major street activities, it is charged to the appropriate winter maintenance street accounts. The local and major street maintenance accounts have $189,000 budgeted for winter application materials in FY 23-24.

RECOMMENDATION:

Authorize City staff to utilize the State of Michigan Extended Purchasing Program (MI DEAL) to purchase road salt.

ALTERNATIVES:

As determined by the Commission.

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