To: Members of the Public Works Commission
From: Daniel Lord, Street O&M Division Manager
Title
Resolution approving the purchase of 3,200 tons of Ice Slicer
Body
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Executive Summary
The purpose of this memo is to request Town Council’s final approval for the expenditure of funds to purchase 3,200 tons of Ice Slicer from Envirotech Services Inc. This product is one presently approved for use in the Town’s Snow and Ice control program. The community values safety on Town roadways and we use this material to assist with improving safety on Town roadways during snow and ice control operations in support of this community value. Approximately 3,200 tons of material is needed to ensure supply for a typical snow season between November and April.
This request is to earmark funding to fill the Salt shed with the anticipated amount needed for the upcoming snow season at full price should the early fill option not be available. Allocation of this funding ensures that the Town is positioned to procure the needed amount of Ice Slicer regardless of economic constraints. Typically, the Town purchases this product during the “Early Fill” promotion which reduces the price per ton and saves the Town a significant amount of money. Recently, the vendor has established a more valuable savings program that further reduces the cost per ton but is time restrictive. This program is announced in early May and only applies to the amount of product that is delivered on site by the end of May. This short timeframe does not allow for the appropriate purchasing policy approval process to be conducted in time to take advantage of the savings. By approving the expenditure for the full amount of material at the full, non-discounted price prior to the announcement of the Early Fill pricing, the Town is able to take advantage of the short time frames for early fill delivery and maximize the savings available. Additionally, during the pandemic a number of years ago, the Early Fill pricing was suspended. The approval of the purchase at full price would ensure sufficient funding is allocated to procure the needed material in the event that early fill is suspended again for unforeseen circumstances.
The intent will be to have the purchase agreement approved and ready when the Early fill pricing is announced in May, at which time the order will be placed for sufficient material to reach a stockpile of 3200 tons.
The pricing for the product is from a competitive state bid which allows the Town to purchase the material at that pricing. The current quoted, non-discounted price is set at $141.61 per ton, and it is unknown what the Early Fill discounted price will be until it is announced in May. The cost to complete this purchase as quoted is $453,152. This is a budgeted expenditure and sufficient funds exist for this purchase. The cost will be lower than this if the early fill discount will be available this year.
Budget Impact
The funding source for the proposed expenditure is:
120-3110-431.61-20 $453,152.00
Staff Recommendation
Staff recommends Public Works Commission recommend Town Council approve the resolution as introduced by title.
Proposed Motion
“I move that the Public Works Commission recommend that Town Council approve the attached Resolution as introduced by title.”
Alternative motions:
“I move to recommend that Town Council approve the attached Resolution as introduced by title, with the following conditions: (list conditions)”
“I move to continue this item to the Public Works Commission meeting on (date) to allow additional time to (list information needed)”
Attachments
Attachment A: Contract