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 renovation of the current salt storage barns is set to begin late spring/early summer of 2012. Contracting with American Rock Salt to store the City's rock salt until after the salt barns have been renovated will save man hours from transferring salt from one location to another during renovations and decrease the amount of unusable rock salt created from multiple transfers from storage locations. The more rock salt is handled, the more rock salt is broken down into a condition that is useless for roadway treatment for snow and ice.
This ordinance authorizes the Director of the Department of Public Service to contract with American Rock Salt Co., LLC to store rock salt purchased by the City under the authority of FL004994, as approved by Ord. 0767-2011. This contract would allow the City to continue to make payment for the tonnage as stated in the purchase agreement, but American Rock Salt would hold the remaining salt required until the City requests delivery.
2. CONTRACT COMPLIANCE
American Rock Salt Co., LLC, contract compliance number is 16-1516458 and expires 7/29/13.
3. FISCAL IMPACT
This ordinance has no fiscal impact. Funds to purchase the salt are budgeted and authorized through purchase order number FL004994.
4. EMERGENCY DESIGNATION
This legislation is requested to be heard as an emergency due to the necessity of the Division of Planning and Operations to purchase the required tonnage of rock salt to remain in compliance with the cooperative purchasing contract through ODOT.
Title
To authorize the Director of Public Service to contract with American Rock Salt Co., LLC to allow for the storage of up to 12,127 tons of rock salt from American Rock Salt Co. LLC, at no additional cost, until the City requests delivery, which shall be no later than September 30, 2012 for the Division of Planning and Operations; and declare an emergency. ($0.00)
Body
WHEREAS, the Division of Planning and Operations is responsible for conducting snow and ice removal along the City's roadway system and currently has a contract with ODOT for the purchase and delivery of rock salt, and
WHEREAS, the Division of Planning and Operations needs to fulfill its contract with ODOT by purchasing another 12,127 tons of rock salt; and
WHEREAS, due to the extremely mild winter season and the reconstruction of City Salt barns it is necessary to modify this contract; and
WHEREAS, the City will proceed with the payment to American Rock Salt from purchase order FL004994 by April 30,2012 as required by the contract, but would also contract so the remaining tonnage would be held by American Rock Salt until a time at which the City requests delivery; and
WHEREAS, American Rock Salt Co., LLC has agreed not to charge any additional fees if delivery is made no later than September 30, 2012; and
WHEREAS, an emergency exists in the usual daily operations of the Division of Planning and Operations in that it is immediately necessary to purchase prepay for up to 12,127200 tons of rock salt to stay contract compliant and for the immediate preservation of the public health, peace, property, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Service is hereby authorized to contract with American Rock Salt Co, LLC, P.O. Box 190, Mt. Morris, NY, 14510, to provide for the storage of Rock Salt with American Rock Salt Co. LLC, until it is ordered for delivery, which shall be no later than September 30, 2012.
SECTION 2. That the City will proceed with the purchase of the required tonnage of rock salt from purchase order FL004994 by April 30, 2012.
SECTION 3. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.