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Resolution 57-11RECORD OF RESOLUTIONS Inc. Fonn No. 30M Resolution No. 57 -11 Passed 20 A RESOLUTION ACCEPTING THE LOWEST AND BEST BID FOR ENHANCED ROAD SALT WHEREAS, the City of Dublin receives significant snow fall and other frozen precipitation during the winter season; and WHEREAS, the City of Dublin has a curb -to -curb snow removal policy designed to remove snow from all public streets as quickly and efficiently as possible; and WHEREAS, it is necessary to purchase and utilize enhanced road salt to remove snow and ice from public streets; and WHEREAS, the City has administered a public bid process in accordance with the City's bidding rules and regulations; and WHEREAS, Cargill Deicing Technologies submitted the lowest and best bid of $67.99/ton for enhanced road salt. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, of its elected members concurring, that: Section 1. Cargill Deicing Technologies is hereby declared to be the lowest and best bidder for the purchase of enhanced road salt. Section 2 . The City Manager is authorized to execute an agreement with Cargill Deicing Technologies to supply and deliver the City with enhanced road salt at $67.99/ton. Section 3. It is found and determined that all formal actions of the Council of the City of Dublin concerning and relating to the passage of this Resolution were adopted in an open forum of this Council and of any of its subcommittees in compliance with all legal requirements, including Sections 121.22 of the Ohio Revised Code. Section 4. This Resolution shall be effective upon passage in accordance with Section 4.04(a) of the Revised Charter. Passed this day of 2011. Mayor - :(! O fficer ATTEST: (9�� Clerk of Council Office of the City Manager City of Dublin Pho 614 -410-4 00 Fax: - 4490 43017-1090 To: Members of Dublin City Council From: Marsha Grigsby, City Manager Date: November 10, 2011 Initiated By: Ron Burns, Director of Streets and Utilities Re: Resolution 57 -11 -Accepting the Lowest and Best Bid for Enhanced Road Salt Background Staff is in the process of purchasing both regular road salt and "enhanced" road salt for the upcoming snow season. For the past few years, the City has participated in the State of Ohio cooperative bid process and purchasing program for both regular road salt and enhanced road salt. Enhanced road salt is regular road salt treated with additives to increase its effectiveness in temperatures below 15 degrees, as well as during freezing rain and sleet conditions. This year, the State of Ohio requested bids for regular road salt; however, they did not request bids for enhanced road salt. As a result, the City of Dublin requested bids for enhanced road salt. The City's bid specifications are based on an estimated purchase of 2,000 tons of enhanced salt. However, the City is not required to purchase any amount of enhanced road salt, unless needed. The City's average use of enhanced road salt is approximately 2,000 tons per year. Summary Staff advertised for bids and bids for enhanced road salt were opened October 14, 2011. One bid was received. Receiving only one bid for enhanced road salt was not surprising, because only one company in this region produces enhanced road salt. Shipping this small quantity of enhanced road salt from out -of- state is expensive. These shipping costs make it difficult for out -of -state companies to provide a competitive bid. Cargill Deicing Technology submitted the sole bid at $67.99/ton. This price includes shipping. If the City chooses to have the salt piled at delivery, there is an additional piling fee of $3.50 /tan. Generally, the City only utilizes piling of enhanced road salt approximately 50 percent of the time. The City has purchased enhanced road salt from Cargill in the past, and staff has found their product and service satisfactory. Last year, the City paid $67.28/ton for enhanced road salt, utilizing the State of Ohio cooperative bid process. This equates to an increase of $.71 /ton or 1.1 percent over last year's price. The City will participate in the State of Ohio cooperative purchasing program for regular road salt. The lowest and best bid was submitted by the American Rock Salt Company, LLC at $58.47 /ton. Last year, the City paid $58.98 /ton for regular road salt. This equates to a decrease of $.51 /ton or .9 percent over last year's price. Staff budgeted funds for 6,000 tons of regular road salt. Additional fees for piling apply when the City requires piling of the salt at delivery. Recommendation Staff recommends approval of Resolution 57 -11, authorizing the City Manager to execute an agreement with Cargill Deicing Technologies for the purchase of enhanced road salt at $67.99/ton. Staff intends to participate in the State's cooperative purchasing program for regular road salt. Council action is not required for this purchase.