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Brentwood City Commission Agenda
Meeting Date: 08/26/2019  
Approval to Extend Bulk Salt Purchase Contract for the 2019/2020 Winter Season
Submitted by: Todd Hoppenstedt, Public Works
Department: Public Works  

Information
Subject
Approval to extend the Bulk Rock Salt (Sodium Chloride) Purchase through TDOT Contract #54019 for the 2019/2020 winter season.  
Background
For quite some time, City of Brentwood has piggybacked off the Tennessee Department of Transportation (TDOT) contract for bulk rock salt (sodium chloride) purchase.  This allows the City to obtain bulk rock salt for winter snow and ice operations at a competitive rate and maintain the flexibility to adjust our actual order volume based on our need each winter.  Rock salt has an extremely long shelf life if kept dry and free of debris accumulation.  

At this time, the City stockpiles rock salt in two different covered shelters--one large storage shed at the Service Center, where the Public Works Department is based, and one smaller storage shed at Fire Station #4, which is used to improve our efficiency when working on the eastern side of the City.  Currently, both stockpiles are nearly full, largely due to the extremely mild winter conditions experienced during the 2018/2019 winter season.  Since our ordering needs can vary widely with little to no prediction, selecting a volume of order for the upcoming contract period is largely an educated guess.  

We believe that 600 tons of rock salt combined with our current stockpile should suit our needs, even through a more challenging winter.  Thankfully, this size of an order on the back of TDOT's much larger volume can be excused if we experience another very mild winter. 

The current contract began on June 1, 2017 and was set to expire on May 31, 2019; however, TDOT has negotiated a one-year extension to the existing bulk rock salt purchasing contract with Morton Salt, Inc.  The cost is very competitive at only $71.25/ton for a not-to-exceed purchase cost of $42,750 for 600 tons.  We have paid as much as $98 per ton on previous independent contracts. As previously mentioned, this partnership affords us a great deal of flexibility that we would be hard pressed to duplicate on our own, especially with our relatively small volume order.

We are requesting City Commission approval to purchase up to 600 tons of bulk rock salt from Morton Salt through statewide contract #54019 on an as-needed basis for $71.25 per ton, at a total cost not to exceed $42,750.00.

Please direct any questions to the Director of Public Works.  
Staff Recommendation
Staff recommends approval to purchase up to 600 tons of bulk rock salt from Morton Salt through statewide contract #54019 on an as-needed basis, at a total cost not to exceed $42,750.00.

Please direct any questions to the Director of Public Works.  
Previous Commission Action
The Commission approved the original salt purchase contract at its July 24, 2017 meeting.

Fiscal Impact
Amount : $42,750.00
Source of Funds: General Fund
Account Number: 110-43120-82643
Fiscal Impact:
The actual expenditure may vary depending on the amount of bulk rock salt purchased throughout the entire winter season, therefore we are requesting approval for a not to exceed amount of $42,750.00.  That will give us the flexibility to order up to 600 tons of bulk rock salt at $71.25/ton.
Attachments
TDOT Bulk Rock Salt Purchase Contract #54019
TDOT Bulk Salt Ordering Memo

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