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Mount Clemens approves noncompetitive purchases for $3 million ice arena upgrade; bonds sold at about 1.55%

May 31, 2024 | Mount Clemens, Macomb County, Michigan


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Mount Clemens approves noncompetitive purchases for $3 million ice arena upgrade; bonds sold at about 1.55%
City manager Jeff Johnson told commissioners the city has sold bonds to finance a roughly $3 million renovation of the Mount Clemens Ice Arena and that parts of the project do not lend themselves to open competitive bidding because equipment is specialized and must integrate with existing systems.

"When the arena was initially constructed in 1994...Simcoe, a Canadian company, was chosen for a custom compressor build specifically for our facility," Johnson said. He recommended the commission find "no advantage" to competitive bidding for certain components and allow noncompetitive purchases for compressors from Simcoe, boiler work from DECAL Service Group, dehumidification work from ROE Consulting, fire alarm improvements from Interstate Security and rubber flooring from FloorCraft.

Johnson listed proposed vendor orders included on the purchases section of the agenda: Simcoe compressors for $684,500; DECAL service for boilers for $114,251; ROE Consulting for a dehumidifier wheel for $45,709.77. He said other portions of the project would proceed through competitive bidding or cooperative purchasing where feasible.

Johnson also noted the bond sale on Jan. 20 produced a true interest cost of approximately 1.55 percent, the city received a $60,000 good-faith deposit and the transaction was scheduled to close on Feb. 9.

A motion finding no advantage to competitive bidding for the listed equipment and authorizing the recommended procurement approach was moved, supported and approved by roll call. Commissioners said they were comfortable using cooperative purchasing or direct purchase where equipment compatibility justified it.

No contract signatures beyond the authorization were recorded at the meeting; staff indicated purchase orders and further procurement steps would follow approved procedures.

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