HomeMy WebLinkAbout04. 22-278JULY 12, 2022 22-278 RESOLUTION
(CARRIED___6-0_____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE PURCHASE OF ROAD SALT FOR WINTER 2022-2023
FOR THE DEPARTMENT OF PUBLIC WORKS THROUGH WDOT
FROM COMPASS MINERALS ($354,862.20)
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, Compass Minerals has been awarded the 2022-2023 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 2022-
2023 from:
COMPASS MINERALS
9900 W 109th Suite 600
Overland Park, KS 66210
Total (guaranteed purchase): 3,000 tons @ $76.81 per ton
Total estimated purchase: $354,862.20
JULY 12, 2022 22-278 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. 01000430-6529 Street Division-Non-Inventory Supplies
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TO: Honorable Mayor and Members of the Common Council
FROM: Steven M. Gohde, Assistant Director of Public Works / Utilities General Manager
DATE: July 7, 2022
RE: Approve Purchase of Road Salt for Winter 2022-2023 for the Department of Public
Works through WDOT from Compass Minerals ($354,862.20)
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 2022-2023 road salt bid, we guaranteed a minimum purchase of 3,850 tons,
with an option for an additional 770 tons of salt.
ANALYSIS
Compass Minerals has been awarded the 2022-2023 WDOT road salt contract for our area. Based
on our guaranteed early season fill of 850 tons, guaranteed seasonal fill of 3,000 tons and a
reserve amount of 770 tons, we will be charged $76.81/ton for a projected expense of not more
than $354,862.20. The price per ton for the past five (5) years is shown in the table below. These
road salt purchases are made throughout the winter season as quantities are used and additional
storage space is made available. Funding for road salt purchases is included in the Streets
Division Operating Budget (01000430-6529 / Street Division-Non-Inventory Supplies).
Season Rate ($/ton)
2021-2022 $79.41
2020-2021 $77.10
2019-2020 $74.13
2018-2019 $69.93
2017-2018 $62.41
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FISCAL IMPACT
There is currently $76,475 remaining in the 2022 Operations Budget. Our contract with WDOT
guaranteed an “early season” delivery of 850 tons at a total cost of $65,288.50. Funds will be
budgeted in the 2023 Operations Budget to purchase the guaranteed seasonal fill of 3,000 tons,
the reserve amount of 770 tons, per our current contract, plus an estimated early fill need for fall
2023. This will require an estimated outlay in the 2023 Operations Budget of $350,000 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:
Mark A. Rohloff
City Manager
SMG/tlt