HomeMy WebLinkAbout37. Waive Bids 401r
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ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Mark A. Rohloff, City Manager 1 lam.
DATE: June 21, 2012 l�
RE: Waive Bids for Road Salt Purchase
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 2012-2013 road salt bid, we guaranteed a
minimum usage of 3,950 tons, with an option for an additional 987 tons of salt.
Cargill, Inc. has been awarded the 2012-2013 WDOT road salt contract. Based on our guaranteed minimum
usage of 3,950 tons, we will be charged $55.72/ton for a projected expense of$220,094. The price per ton has
decreased from $57.76/ton for the 2011-2012 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 2012 Street Department operating budget (100-0430-6561-00000).
The 2012 operating budget includes an allocation of$225,000 for the purchase of sodium chloride (road salt) for
the Public Works Department. Of that amount, $105,000 was expended for salt purchase for the 2011-2012
winter season. We will budget additional funds as a part of the 2013 Operating Budget to pay for the road salt
that will be purchased in January/February/March of 2013 as part of this WDOT contract.
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 Section 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.
MAR/tit
H:Itracyt\Tracy's Files\Memos to Mayor&Common Counci1120121Waive Bids for Rd Salt Purch_6-21-12.docx