Explanation
1. BACKGROUND
The Department of Public Service and the Department of Public Utilities are responsible for snow and ice control and removal on the city's roadway system. Rock salt is used extensively in these operations. It is necessary for the Department of Public Service and the Department of Public Utilities to have the ability to purchase rock salt for the 2014 - 2015 winter season.
The Ohio Department of Transportation (ODOT) has established its annual cooperative purchasing contract, Contract No. 18, which allows participating government agencies to purchase rock salt from a selected vendor. ODOT bid the cooperative purchasing contract as a cooperative contract for use by other governmental agencies, in accordance with Chapter 5513.01 (B) of the Ohio Revised Code. The vendor selected by the Ohio Department of Transportation was Cargill Inc.
This legislation authorizes the appropriation of monies within the Street Construction Maintenance and Repair Fund within the Department of Public Service and also authorizes the Director of the Department of Finance and Management to establish blanket purchase orders with Cargill Inc. for the Department of Public Service and the Department of Public Utilities. The funding authorized by this ordinance is for expenses that will occur during the winter months of 2014-2015. In accordance with ordinance 1410-2010, the city is authorized to participate in these cooperative purchasing agreements subject to council approval.
The Department of Public Service and the Department of Public Utilities previously requested authorization to purchase rock salt for the 2014-2015 winter season by way of ordinance 0717-2014. That ordinance authorized the expenditure of $1,802,000.00 for rock salt. That legislation was intended to pay for the salt needed for the upcoming winter season. After the contract was awarded it was determined the price per ton is significantly higher than projected. Due to the increased pri...
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