HomeMy WebLinkAbout15. 18-360 JULY 10, 2018 18-360 RESOLUTION
(CARRIED 6-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE PURCHASE OF ROAD SALT FOR WINTER 2018-2019
FOR THE DEPARTMENT OF PUBLIC WORKS THROUGH WDOT
FROM MORTON SALT COMPANY ($293,706.00)
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 2018-2018 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 2018-
2019 from:
MORTON SALT COMPANY
444 W. Lake Street, Suite 3000
Chicago, IL 60606
Total (guaranteed purchase): 3500 tons @$69.93 per ton $244,755.00
Additional Option: 700 tons @$69.93 per ton $ 48,951.00
Total authorized purchase: $293,706.00
JULY 10, 2018 18-360 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. 0100-0430-6561-00000 General Fund - Sodium Chloride
City
Oshkosh
ME]
TO: Honorable Mayor and Members of the
FROM: James Rabe, Director of Public Works
DATE: June 29, 2018
RE: Approve Purchase of Road Salt for Winter 2018-2019 for the Department of Public Works through
WDOT from Morton Salt Company ($293,706)
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 2018-2019 road salt bid, we guaranteed a
minimum purchase of 3,500 tons, with an option for an additional 700 tons of salt.
ANALYSIS
Morton Salt Company has been awarded the 2018-2019 WDOT road salt contract. Based on our guaranteed
minimum usage of 3,500 tons and a reserve amount of 700 tons, we will be charged $69.93/ton for a projected
expense of not more than $293,706. The price per ton has increased from $62.41/ton for the 2017-2018 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 Streets Division Operating Budget
(01000430-6561).
FISCAL IMPACT
There is currently $60,405.49 remaining in the 2018 Operations Budget. Our contract with WDOT guaranteed an
"early season" delivery of 1,500 tons at a total cost of $104,895. Additional funds will be budgeted in the 2019
Operations Budget to purchase the guaranteed 2,000 tons, the reserve amount of 700 tons, per our current
contract, plus an estimated early fill need for fall 2019. This will require an estimated outlay in the 2019
Operations Budget of $300,000 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/tit
L\ Engineering\Tracy Taylor\ Memos to Mayor & Common Council\2018 \ Waive Bids for Rd Salt Purch_6-29-18.docx