HomeMy WebLinkAbout5D Road Salt Purchase Agreement O � PRIp
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Prior Lake_ MN 55372
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CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 8, 2013 I
AGENDA #: 5D
PREPARED BY: JAKE THEISEN, MAINTENANCE SUPERVISOR
PRESENTED BY: JAKE THEISEN
AGENDA ITEM: CONSIDER APPROVAL OF RESOLUTION APPROVING THE EXPENDITURE
OF UP TO $48,000 FOR ROAD SALT THROUGH THE STATE OF MINNESOTA
COOPERATIVE PURCHASING VENTURE
DISCUSSION: Introduction '
The purpose of this agenda item is to seek approval from the City Council author- !,
izing the expenditure of up to $48,000 to purchase 800 tons of road salt through
the State of Minnesota Cooperative Purchasing Venture (CPV) identified in the
2013-2014 budget documents.
Histo
Each year the City Council adopts the budget which includes funding for the pur-
chase of road salt for winter maintenance. Road salt is purchased through the
Minnesota Cooperative Purchasing Venture.
Current Circumstances
The 2013-2014 CPV helps the City maintain the best value for purchasing road
salt. Currently there are 118 city and county entities that are members of this
CPV. Staff has found that we save an average of five dollars per ton on road salt
when purchasing through the CPV as compared with purchasing the product on
our own. The City has to have their quantities into the CPV by April 9, 2013 to be
part of the 2013-2014 agreement. Staff is recommending the commitment to pur-
chase 800 tons of road salt at an estimated cost of $60 per ton for a total cost of
$48,000 for the 2013/2014 snow season.
Conclusion
Similar to previous years, staff is recommending joining the Cooperative Purchas-
ing Venture as a key component of our street maintenance program. Continued
cooperative purchasing will help reduce the cost to the resident of Prior Lake.
ISSUES: The fundamental reason for entering into this contract through the CPV is to get
better products for the least expensive prices. We also find that the oversight and
administration of this contract is considerably easier when it is completed in col-
laboration with others.
FINANCIAL This Cooperative Purchasing Venture is cost effective for city taxpayers. The
IMPACT: State Legislature places a high priority on cities combining their resources to ac-
complish day-to-day responsibilities. This is an excellent example of this practice.
ALTERNATIVES: 1. Adopt the resolution authorizing the expenditure of up to $48,000 for road salt
from the Minnesota Cooperative Purchasing Venture as part of the consent
agenda.
2. Table this agenda item for a specific reason.
3. Deny this agenda item for a specific reason and provide staff with direction.
RECOMMENDED Alternative #1
MOTION:
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4646 Dakota Street SE
�''IN�so'��' Prior Lake, MN 55372
RESOLUTION 13-xxx
A RESOLUTION AUTHORIZING AN EXPENDITURE OF UP TO $48,000 FOR ROAD SALT UTILIZING
THE STATE OF MINNESOTA COOPERATIVE PURCHASING VENTURE
Motion By: Second By:
WHEREAS, The City of Prior Lake is committed to maintaining the streets within the City year around; and
WHEREAS, Improved winter snow and ice control provide residents and visitors the opportunity of safe
travel on City streets; and
WHEREAS, Continued cooperative purchasing will reduce the cost of snow and ice control products to
residents of Prior Lake and;
WHEREAS, Utilizing the State of Minnesota Cooperative Purchasing Venture for acquisition of road salt
during winter maintenance activities will help maintain a fiscally responsible street budget.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Council authorizes the Maintenance Supervisor to purchase up to $48,000 of road salt for the
2013-2014 winter season.
3. The funding for these purchases shall come from the street portion of the 2013-2014 General Fund
Budget 101-43100-219.
PASSED AND ADOPTED THIS 8th DAY OF April 2013.
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager