HomeMy WebLinkAbout06. 20-304 JULY 14, 2020 20-304 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE PURCHASE OF ROAD SALT FOR WINTER 2020-2021
FOR THE DEPARTMENT OF PUBLIC WORKS THROUGH WDOT
FROM MORTON SALT COMPANY ($185,040.00)
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 2020-2021 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 2020-
2021 from:
MORTON SALT COMPANY
444 W. Lake Street, Suite 3000
Chicago, IL 60606
Total (guaranteed purchase): 2000 tons @$77.10 per ton $154,200.00
Additional Option: 400 tons @$77.10 per ton $ 30,840.00
Total authorized purchase: $185,040.00
JULY 14, 2020 20-304 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
SCl
Cityo
Oshkosh
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM. James Rabe,Director of Public Works
`-\ ��
DATE. July 9, 2020
RE. Approve Purchase of Road Salt for Winter 2020-2021 for the Department of Public Works
through WDOT from Morton Salt Company ($185,040)
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 2020-2021 road salt bid,
we guaranteed a minimum purchase of 2,000 tons, with an option for an additional 400 tons of salt.
ANALYSIS
Morton Salt Company has been awarded the 2020-2021 WDOT road salt contract for our area. Based on
our guaranteed minimum usage of 2,000 tons and a reserve amount of 400 tons, we will be charged
$77.10/ton for a projected expense of not more than$185,040. The price per ton for the past five (5) years
is shown in the table below These road salt purchases are made throughout the winter season as
quantities are used and additional storage space is made available. Funding for road salt purchases is
included in the Streets Division Operating Budget(01000430-6561).
Season Rate ($/ton)
2019-2020 $74.13
2018-2019 $69.93
2017-2018 $62.41
2016-2017 $64.01
2015-2016 $65.65
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FISCAL IMPACT
There is currently $84,779.93 remaining in the 2020 Operations Budget. Dependent on fall and early
winter weather, we do not anticipate requiring a fill prior to the end of calendar year 2020. Funds will
be budgeted in the 2021 Operations Budget to purchase the guaranteed 2,000 tons, the reserve amount
of 400 tons, per our current contract, plus an estimated early fill need for fall 2021. This will require an
estimated outlay in the 2021 Operations Budget of$270,000 for salt purchase.
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:
.7((e----, ) —
Mark A.Rohloff
City Manager
JER/tlt
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