HomeMy WebLinkAbout17. 19-484 AUGUST 27, 2019 19-484 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE PURCHASE OF ROAD SALT FOR WINTER 2019-2020
FOR THE DEPARTMENT OF PUBLIC WORKS THROUGH WDOT
FROM MORTON SALT COMPANY ($311,346.00)
INITIATED BY: DEPARTMENT OF PUBLIC WORKS
WHEREAS, the Wisconsin Department of Transportation (WDOT) solicits bids
each year for sodium chloride to be used as a de-icing agent; and
WHEREAS, local units of government are invited to participate with this state
contract and benefit from the purchase power of a combined quantity of road salt,
resulting in a lower price, by purchase of a guaranteed amount with the option to
purchase additional amounts if needed; and
WHEREAS, Morton Salt Company has been awarded the 2019-2020 WDOT road
salt contract.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the proper City officials are hereby authorized and directed pursuant to
Section 12-15 of the Oshkosh Municipal Code to purchase the road salt for winter 2019-
2020 from:
MORTON SALT COMPANY
444 W. Lake Street, Suite 3000
Chicago, IL 60606
Total (guaranteed purchase): 3500 tons @$74.13 per ton $259,455.00
Additional Option: 700 tons @$74.13 per ton $ 51,891.00
Total authorized purchase: $311,346.00
AUGUST 27, 2019 19-484 RESOLUTION
CONT'D
BE IT FURTHER RESOLVED that the proper City officials are hereby authorized
and directed to enter into an appropriate agreement for the purpose of same. Money for
this purpose is hereby appropriated from:
Acct. No. 0100-0430-6561-00000 Sodium Chloride
City
of W
Oshkosh
MEMORANDUM
TO: Honorable Mayor and Members of the C. Council
FROM: James Rabe, Director of Public Work: /
DATE: August 22, 2019
RE: Approve Purchase of Road Salt for Winter 2019-2020 for the Department of Public Works
through WDOT from Morton Salt Company ($311,346)
BACKGROUND
The Wisconsin Department of Transportation (WDOT) solicits bids each year for sodium chloride to be
used as a de-icing agent. Local units of government are invited to participate with this State contract
and benefit from the purchase power of a combined quantity of road salt, resulting in lower prices.
The City of Oshkosh has participated with this program since 1998. To participate in the 2019-2020
road salt bid, we guaranteed a minimum purchase of 3,500 tons, with an option for an additional 700
tons of salt.
ANALYSIS
Morton Salt Company has been awarded the 2019-2020 WDOT road salt contract for our area. Based
on our guaranteed minimum usage of 3,500 tons and a reserve amount of 700 tons, we will be charged
$74.13/ton for a projected expense of not more than $311,346. The price per ton has increased from
$69.93/ton for the 2018-2019 contract. These road salt purchases are made throughout the winter
season as quantities are used and additional storage space is made available. Funding for road salt
purchases is included in the Streets Division Operating Budget(01000430-6561).
FISCAL IMPACT
There is currently $35,916.27 remaining in the 2019 Operations Budget. Our contract with WDOT
guaranteed an "early season" delivery of 1,400 tons at a total cost of$103,782. Additional funds will be
budgeted in the 2020 Operations Budget to purchase the guaranteed 2,100 tons, the reserve amount of
700 tons, per our current contract, plus an estimated early fill need for fall 2020. This will require an
estimated outlay in the 2020 Operations Budget of$240,000 for salt purchase.
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RECOMMENDATIONS
Section 12-15 of the Municipal Code provides that, subject to approval of the City Manager,
cooperative purchases pursuant to a contract with any other local, state, or federal governmental unit
or agency, may be made without following a competitive bidding or quotation process. In accordance
with Section 12-15 of the Code and with the approval by the City Manager, I am hereby recommending
approval of this purchase.
Approved:
Q„---�
Mark A. Rohloff
City Manager
J ER/tlt
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