Shared Service | Munetrix - Government Transparency

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)

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Partner	Type	Lies Within	Fiscal year	Population/Enrollment	General Fund Expenditures
Antrim County	County	10 Networks Northwest	2018	23,365	$59,507,682
Elk Rapids	Village	Antrim County	2018	1,620	$3,503,773
				24,985	63,011,455

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