HomeMy WebLinkAbout5E Salt Purchase Report4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: MARCH 13, 2017
AGENDA #: 5E
PREPARED BY: JAKE THEISEN, MAINTENANCE SUPERINTENDENT
PRESENTED BY: JAKE THEISEN
AGENDA ITEM:
DISCUSSION:
ISSUES:
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
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 (CPV) identified in the 2017-2018 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 in an effort to benefit from economies of
scale.
Current Circumstances
The 2017-2018 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 than if we purchased the salt on our own.
Based upon 900 tons of salt this amounts to a savings of $4500 annually. To par-
ticipate in the CVP, the City has to have their estimated salt quantities into the
CPV by April 11, 2017 to be part of the 2017-2018 agreement.
Staff has increased the amount of salt from 960 tons in 2016-2017 to 1200 tons of
salt for the 2017-2018 season. The reason is the City has 300 tons of salt on re-
serve from the 2016-2017 winter season in our salt storage building where last
year we had 500 tons.
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.
The fundamental reason for preforming this contract through the CPV is to get
bet-ter products for the least expensive prices. In addition, we have learned how to
in-crease the effectiveness and therefore minimize the amount of salt we have to
pur-chase by liquefying it and spreading on the roadways in a brine solution.
We also find that the oversight and administration of this contract is considerably
easier when it is completed in collaboration with others.
2
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.
Under the terms of the city code, the city manager make purchases up to $20,000
without council authorization. Salt purchases often exceed this amount so this pro-
cess also helps to assure that we have sufficient salt on hand since we can re-
stock provided we stay within the total tons authorized by the city council.
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. Remove this item from the consent agenda for additional discussion.
RECOMMENDED
MOTION:
Alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-___
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE ANNUAL
CONTRACT BETWEEN THE CITY OF PRIOR LAKE AND THE COOPERATIVE
PURCHASING VENTURE 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 1200 tons at an
estimated value of $88,216 of white road salt for the 2017-2018 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 2017-2018 General Fund Budget 101-43100.00-52054.00.
Passed and adopted by the Prior Lake City Council this 13th day of March, 2017
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager