HomeMy WebLinkAbout05. 14-274
JUNE 24, 2014 14-274 RESOLUTION
(CARRIED___7-0___LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE PURCHASE OF ROAD SALT FOR WINTER 2014-2015
FOR THE DEPARTMENT OF PUBLIC WORKS THROUGH WDOT
FROM CARGIL, INC. ($227,325.00)
INITIATED BY: PURCHASING DEPARTMENT
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; and
WHEREAS, Cargill, Inc. has been awarded the 2014-2015 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 2014-
2015 from:
CARGILL, INC.
24950 Country Club Blvd., Suite 450
North Olmsted, OH 44070
Total: $227,325.00
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. 100-0430-6561-00000 General Funds/Street Division Road Salt
OJHKOJH
ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: David C. Patek, Director of Public Works,_!_ c_,()
DATE: June 17, 2014
RE: Approve Purchase of Road Salt
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 2014-2015 road salt bid, we guaranteed a
minimum usage of 3,500 tons, with an option for an additional 700 tons of salt.
ANALYSIS
Cargill, Inc. has been awarded the 2014-2015 WDOT road salt contract. Based on our guaranteed minimum
usage of 3,500 tons, we will be charged $64.95/ton for a projected expense of$227,325. The price per ton has
increased from $56.97/ton for the 2013-2014 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 2014 Street Department operating budget(100-0430-6561-00000).
FISCAL IMPACT
The 2014 operating budget includes an allocation of$225,000 for the purchase of sodium chloride (road salt) for
the Public Works Department. Of that amount, $207,909 was expended for salt purchase for the 2013-2014
winter season. We will budget additional funds as a part of the 2015 Operating Budget to pay for the road salt
that will be purchased in January/February/March of 2015 as part of this WDOT contract.
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:
te. - Cf.-7 -
Mark A. Rohloff
City Manager
DCP/tlt
I:\Engineering\Tracy Taylor\Memos to Mayor&Common Counci1\2014\Waive Bids for Rd Salt Purch 6-17-14.docx