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Home My WebLink About5G-Road Salt Cooperative Purchasing Venture O� PR1 U 4646 Dakota Street SE Prior Lake,MN 55372 Oji 0gA CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 23, 2015 AGENDA#: 5G PREPARED BY: JAKE THEISEN, MAINTENANCE SUPERINTENDENT PRESENTED BY: JAKE THEISEN, MAINTENANCE SUPERINTENDENT AGENDA ITEM: CONSIDER APPROVAL OF RESOLUTION AUTHORIZING THE MAINTE- NANCE SUPERINTENDENT TO EXECUTE THE ANNUAL CONTRACT BE- TWEEN THE CITY OF PRIOR LAKE AND THE COOPERATIVE PURCHAS- ING VENTURE FOR ROAD SALT DISCUSSION: Introduction The purpose of this agenda item is to seek approval from the City Council for the signing of the annual contract between the City of Prior Lake and the Coop- erative Purchasing Venture identified in the 2015-2016 budget documents. History Each year the City Council adopts the budget which includes funding for the purchase of road salt for winter maintenance. Road salt is purchased through the Minnesota Cooperative Purchasing Venture. Current Circumstances The 2015-2016 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 rather than on the open market by our- selves. The City has to have their quantities into the CPV by mid-April 2015 to be part of the 2015-2016 agreement. The City is very constricted with the time line that the CPV allows to summit numbers and bring to the City Council for authorization. Last year we increased the amount of salt from our average 600-800 tons con- tract quantity to 1200 tons. At the end of the 2013-2014 winter season we had very little salt in reserve. In a normal year we carry 300-500 tons of salt on reserve in our salt storage building. Currently we have 300 tons in storage with a few months of winter possible. The added quantity we are requesting this year will hopefully bring our reserves up to normal levels pending any extraordinary winter weather. Although the 2014-2015 snow season has been fairly mild there has been an above average number of events where we put treated the roads to keep con- ditions safe for motorists. This winter season has seen 20 events compared to the 34 events in the 2013-2014 winter season, both above an average of 10-15. The City saw four events after March 15 last year with the last snow event on April 17, 2014. We are hopeful of a normal spring this year. Phone 952.447.9800/Fax 952.447.4245/www.cityofpriorlak-e.com Conclusion Similar to previous years, staff is recommending joining the Cooperative Pur- chasing Venture as a key component of our street maintenance program. Con- tinued cooperative purchasing will help reduce the cost to the resident of Prior Lake. ISSUES: The fundamental reason for preforming 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 collaboration with others. As the City Council is aware we are responsible for purchasing the amount of salt we commit to prior to knowing the price. Last year the salt was $65.87 per ton up from $60.36 the year before or about 9% after staying fairly constant for several years. If we see a similar increase we could see a bid price around $71 per ton. However, if there is a shortage of salt like in 2014, we could end up paying a premium in excess of$140 per ton. 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 accomplish day-to-day responsibilities. This is an excellent example of this prac- tice. ALTERNATIVES: 1. Adopt resolution as part of the consent agenda authorizing the Maintenance Supervisor to execute the annual contract between the City of Prior Lake and the Minnesota Cooperative Purchasing Venture. 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: 2 O� YR12 ti U 4646 Dakota Street SE ' 111 -so-lt Prior Lake, MN 55372 RESOLUTION 15-xxx A RESOLUTION AUTHORIZING THE MAINTENANCE SUPERINTENDENT TO EXECUTE THE ANNUAL CONTRACT BETWEEN THE CITY OF PRIOR LAKE AND THE COOPERATIVE PURCHASING VENTURE FOR THE PURCHASE OF ROAD SALT. Motion By: Second By: WHEREAS, The City of Prior Lake is committed to maintaining the streets within the City; and WHEREAS, Improved street conditions provide residents the opportunity of safe travel while commuting on city streets; and WHEREAS, Continued cooperative purchasing will reduce the cost of products to the residents of Prior Lake; and WHEREAS, Signing the Cooperative Purchasing Venture for road salt utilized 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 Superintendent to submit a quantity of 1200 tons at an estimated value of$86,000 of white road salt for the 2015-2016 winter season to be purchased through the annual Cooperative Purchasing Venture. 3. The funding for the Cooperative Purchasing Venture shall come from the Street portion of the 2015- 2016 General Fund Budget 101-43100.00-52054.00. PASSED AND ADOPTED THIS 23rd DAY OF MARCH 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager