HomeMy WebLinkAbout10. 13-384AUGUST 25, 2015 15-384 RESOLUTION
(CARRIED__7-0______LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE PURCHASE OF ROAD SALT FOR WINTER 2015-2016
FOR THE DEPARTMENT OF PUBLIC WORKS THROUGH WDOT
FROM COMPASS MINERALS ($157,560.00)
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, Compass Minerals has been awarded the 2015-2016 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 2015-
2016 from:
COMPASS MINERALS
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9900 W. 109 Suite 600
Overland Park, KS 66210
Total: $157,560.00
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 Fund - Street Division Road Salt
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MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Steven M. Gohde, Interim Director of Public Works 5�9
DATE: August20,2015
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 2015-2016 road salt bid, we guaranteed a
minimum usage of 2,400 tons, with an option for an additional 3,100 tons of salt.
ANALYSIS
Compass Minerals has been awarded the 2015-2016 WDOT road salt contract. Based on our guaranteed
minimum usage of 2,400 tons, we will be charged $65.65/ton for a projected expense of $157,560. The price
per ton has increased from $64.95/ton for the 2014-2015 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 2015 Street Department Operating Budget (100-0430-6561-00000).
FISCAL IMPACT
The 2015 operating budget includes an allocation of $240,000 for the purchase of sodium chloride (road salt) for
the Public Works Department. Of that amount, $166,186 was expended for salt purchase for the 2014-2015
winter season. Funding is anticipated to be available from savings in the gas and diesel fuel budgets. Fuel
prices for 2015 have been below the estimated price per gallon used to determine the fuel budgets. We will
budget additional funds as a part of the 2016 Operating Budget to pay for the road salt that will be purchased in
January/February/March of 2016 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:
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Mark A. Rohloff
City Manager
SMG/tlt
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