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United States
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10 Networks Northwest
Antrim County
Elk Rapids
Salt Storage/Ice Control Materials Purchasing Agreement
Field
Field Value
Shared Services Name
Salt Storage/Ice Control Materials Purchasing Agreement
Data Owner
Elk Rapids
Form
Contractual
Primary Purpose
Public Works
Scope
County
Status
Proposed
Year Initiated
2014
Revenues (less partner contributions)
Website
http://www.elkrapids.org
Description
Project Background
The Village of Elk Rapids remains committed to providing a safe and environmentally-sensitive winter road maintenance program, while reducing costs to citizens. In the early 1990s, the Antrim County Road Commission constructed a new salt storage building that allowed for the unloading, mixing and loading of salt to be conducted under a single roof - eliminating the possibility of runoff contamination. The cost of construction for this structure was $200,000. On October 3, 1994, the Village Council accepted a proposal from the Antrim County Road Commission to share this salt storage facility for annual fee of $1,000. This 20-year shared service contract ended in October 2014.
Recognizing the benefits of the 1994 agreement, the Antrim County Road Commission (ACRC) and Village of Elk Rapids (Village) are negotiating a new agreement to continue this shared service contract. The draft agreement states that:
The Village will have access to salt, sand and salt/sand mixtures that the ACRC stores in its Kewadin salt storage barn.
Village employees will be allowed to use the ACRC loader when it is available for loading Village trucks with ice control materials.
Village employees shall complete an ACRC Requisition form for each load of ice control material and shall be left in a designated location for ACRC to collect. All material loaded shall be accounted for.
The ACRC will periodically invoice the Village for all ice control material. The cost for each ice control material shall include all costs for: material, shipping, handling, mixing and 10% overhead. Cost shall be on a cubic yard basis.
The ACRC shall have priority use of the building, loader and ice control material and may restrict the use of an or all ice control material when, at the discretion of the ACRC, there is a shortage of such material.
This agreement applies only to the current salt storage barn built in 1994.
This agreement shall expire on June 1, 2017, at which time is will be reviewed by both parties.
Cost Savings/Revenue
By paying for only materials and associated costs (see #4 above), the Village continues to save on the cost of constructing its own similarly-equipped, but smaller, facility - which would cost approximately $70,000. Further cost savings will be realized by the economy-of-scale created among the multiple communities involved in the agreement - purchasing a larger total quantity of ice control materials.
Additional Benefits
In addition to the cost savings associated with this shared service contract, the Village is able to:
Continue providing a quality winter road maintenance program; and
Source its ice control materials from a facility that minimizes runoff contamination by conducting all operations under a single roof.
Partners for Salt Storage/Ice Control Materials Purchasing Agreement
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Partner
Type
Lies Within
Fiscal year
Population/Enrollment
General Fund Expenditures
Antrim County
County
10 Networks Northwest
2022
23,301
$77,479,456
Elk Rapids
Village
Antrim County
2022
1,614
$4,457,241
24,915
81,936,697
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Tasks for Salt Storage/Ice Control Materials Purchasing Agreement
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Task Status:
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Task Name
Task Status
Start Date
End Date
Elk Rapids Village Council Approval
On Schedule
2014-04-01
2014-04-30
Antrim County Road Commission Approval
On Schedule
2014-03-01
2014-03-31
Negotiate Agreement Language
On Schedule
2014-01-01
2014-02-28
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