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HomeMy WebLinkAbout5F Salt Purchase 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: April 11, 2016 AGENDA #: 5F PREPARED BY: JAKE THEISEN, MAINTENANCE SUPERINTENDENT PRESENTED BY: JAKE THEISEN AGENDA ITEM: CONSIDER APPROVAL OF RESOLUTION AUTHORIZING THE CITY MAN- AGER TO EXECUTE THE ANNUAL CONTRACT BETWEEN THE CITY OF PRIOR LAKE AND THE COOPERATIVE PURCHASING 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 Cooperative Purchasing Venture identified in the 2016-2017 budget documents. History 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 Min- nesota Cooperative Purchasing Venture. Current Circumstances The 2016-2017 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. The City has to have their quantities into the CPV by April 12, 2016 to be part of the 2016-2017 agreement. Staff has decreased the amount of salt from 1200 tons in 2015-2016 to 800 tons of salt for the 2016-2017 season. The reason is the City has 500 tons of salt on re- serve in our salt storage building. 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 preforming this contract through the CPV is to get bet- ter products for the least expensive prices. We also find that the oversight and ad- ministration of this contract is considerably easier when it is completed in collabo- ration with others. FINANCIAL IMPACT: This Cooperative Purchasing Venture is cost effective for city taxpayers. The 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. 2 ALTERNATIVES: 1. Adopt the resolution authorizing the City Manager to Execute the annual Con- tract between the City of Prior Lake and the Minnesota Cooperative Purchasing Venture for road salt 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 MOTION: Alternative #1 : 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-xxx A RESOLUTION AUTHORIZIN THE CITY MANAGER TO EXECUTE THE ANNUAL CONTRACT BETWEEN THE CITY OF PRIOR LAKE AND THE COOPERATIVE PURCHASING AGREEMENT FOR 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 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 City Manager to submit a quantity of 800 tons at an estimated value of $56,000 of white road salt for the 2016-2017 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 2016- 2017 General Fund Budget 101-43100.00-52054.00. PASSED AND ADOPTED THIS 11th DAY OF APRIL 2016. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager