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HomeMy WebLinkAbout29. Waive Bids for Road Salt 2012 CITY HALL 215 Church Avenue P.O.Box 1130 Oshkosh,Wisconsin 10 54903-1-11330 City of Oshkosh OIHKOlH TO: Honorable Mayor and Members of the Common Council FROM: Mark A. Rohloff, City Manager �. DATE: January 31,2012 RE: WAIVE BIDS FOR ROAD SALT 2012 In the 2012 operating budget the Common Council approved allocation of $225,000 for the purchase of sodium chloride (road salt) for the Public Works Department. In addition, the 2011 operating budget allocated$195,000 to purchase road salt last November. Annually the Wisconsin Department of Transportation (WisDOT) solicits bids for sodium chloride to be used as a deicing 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 for more than 12 years. To participate in the 2011-2012 road salt bid we guaranteed a minimum usage of 5,000 tons with an option for an additional 1,250 tons of salt for the 2011-2012 winter season. The North American Salt Company has been awarded the 2011-2012 WisDOT road salt contract. Based on our guaranteed minimum usage of 5,000 tons we will be charged $57.76/ton for a projected expense of$288,800. 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 2012 Street Department operating budget(100-0430-6561-00000). Section 12-10 (D) (3) of the Municipal Code provides that material purchases,when pursuant to a contract with any other local, state or federal governmental unit or agency, may be approved by the City Manager without the use of formal, sealed bids. In accordance with 12-10 (D) (3) of the Code,I am hereby submitting this report regarding this purchase. Please advise me if you have any questions concerning this purchase. to?