HomeMy WebLinkAbout20. 16-381JULY 26, 2016 16 -381 RESOLUTION
(CARRIED 6-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE PURCHASE OF ROAD SALT FOR WINTER 2016 -2017
FOR THE DEPARTMENT OF PUBLIC WORKS THROUGH WDOT
FROM COMPASS MINERALS ($153,624.00)
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 2016 -2017 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 2016 -2017
from:
COMPASS MINERALS
9900 W 109"', Suite 600
Overland Park KS, 66210
Total (guaranteed purchase): 2000 tons @ $64.01 per ton $128,020.00
Additional Option: 400 tons @ $64.01 per ton $ 25,604.00
Total authorized purchase: $153,624.00
JULY 26, 2016
16 -381 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 are hereby appropriated from:
Acct. No. 100 - 0430 - 6561 -00000 General Fund - Streets / Sodium Chloride
C& City
W
Oshkosh
MEMORANDUM
TO: Honorable Mayor and Members of the C on Council
FROM: James Rabe, Director of Public Works
DATE: July 21, 2016
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 2016 -2017 road salt bid, we guaranteed a
minimum purchase of 2,000 tons, with an option for an additional 400 tons of salt.
ANALYSIS
Compass Minerals has been awarded the 2016 -2017 WDOT road salt contract. Based on our guaranteed
minimum usage of 2,000 tons, we will be charged $64.01 /ton for a projected expense of $128,020. The price per
ton has decreased from $65.65/ton for the 2015 -2016 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 2016 Streets Division Operating Budget (100- 0430 - 6561- 00000).
FISCAL IMPACT
There is $75,406 remaining in the 2016 Operations Budget for encumbrance; however, it is not anticipated we
will require an "early season" delivery, since our storage facility is currently full. Additional funds will be
budgeted in the 2017 Operations Budget to purchase a minimum of 2,000 tons at $64.01 /per ton, per our
contract. This will require a minimum outlay in the 2017 Operations Budget of $128,020 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
JER /tlt
1: \Engineering \Tracy Taylor \Memos to Mayor & Common Council \2016\ Waive Bids for Rd Salt Purch- 7- 21- 16.docx