Explanation
1. BACKGROUND
The Division of Planning and Operations is responsible for conducting snow and ice removal along the City's roadway system. Rock salt is used extensively in these operations.
The Ohio Department of Transportation (ODOT) has established its annual cooperative purchasing contract (018-12) which allows participating government agencies to purchase rock salt from a selected vendor. The vendor for this contract is American Rock Salt Co. LLC. The City of Columbus is authorized to participate in this cooperative purchase contract through city ordinance 0767-2011.
Maximum Rock Salt
Company Salt to be Purchased Cost Per Ton Maximum Total Cost
American Rock
Salt Co. LLC 12,127 tons $58.47 $709,065.69
Because the City of Columbus participates in this cooperative purchasing contract through a contract with ODOT, the Division of Planning and Operations is required, at minimum, to purchase 80% of the tonnage required for Winter Use quantities (24,000 tons) prior to the termination of the contract (April 30th, 2012). To date, the Division has only purchased 11,873 tons of rock salt from this contract. If the City fails to purchase its required minimum, it may invalidate participation in the cooperative purchasing agreement for the coming winter season.
The Division is requesting that the remaining rock salt be stored with the supplier (American Rock Salt Co., LLC) until the City requests delivery of the salt, which will be no later than September 30, 2012. The storage and delivery of the rock salt will be at no additional cost to the City. The reasons the City is requesting storage of the salt are as follows:
1) Due to the extremely mild winter season, the current amount of salt being stored is at approximately 14,200 tons, 58% of capacity.
2) The ren...
Click here for full text