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United States
Michigan
10 Networks Northwest
Antrim County
Elk Rapids
Joint Salt Storage Facility (ended October 2014)
Field
Field Value
Shared Services Name
Joint Salt Storage Facility (ended October 2014)
Data Owner
Elk Rapids
Form
Contractual
Primary Purpose
Public Works
Scope
County
Status
Existing
Year Initiated
1994
Revenues (less partner contributions)
Website
http://www.elkrapids.org
Description
Project Background
The Village of Elk Rapids is 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. As of 1994, the Village of Elk Rapids' five-year average use of the Road Commission's existing salt storage facility was 13%. On October 3, 1994, the Village Council accepted a proposal from the Antrim County Road Commission that included:
Annual Payment of $1,000 to Antrim County Road Commission over 20 years for a total of $20,000.
Guaranteed continued access for the Village to ice control materials during this period, paid for on a cubic yard basis, provided that the $1,000 payment is made.
The Road Commission will invoice for the annual payment during October.
After the 20 year period, continued use will be allowed without the annual surcharge, barring unforeseen circumstances that would preclude such an arrangement.
This 20-year shared service contract extends through October 2014.
Cost Savings/Revenue
As previously stated, the Road Commission's construction costs for the salt storage facility were $200,000. The cost to the Village for construction of its own similarly-equipped, but smaller, facility would have been approximately $70,000. The Village (making a total of $20,000 in annual payments to the Road Commission) saved $50,000 over the course of the 20-year agreement to contract with the Road Commission for this service, rather than constructing, maintaining, and operating its own facility on Village property. Further cost savings have been 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 Joint Salt Storage Facility (ended October 2014)
loading data...
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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