HomeMy WebLinkAbout5E Salt Purchase Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 2, 2018
AGENDA #: 5E
PREPARED BY: JAKE THEISEN, MAINTENANCE SUPERINTENDENT
PRESENTED BY: JAKE THEISEN
AGENDA ITEM: CONSIDER APPROVAL OF RESOLUTION AUTHORIZING THE CITY
MANAGER 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 (CPV) identified in the 2018-2019
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 Venture in an effort to benefit from
economies of scale. In the 2017-2018 winter plow season the City used
1,893.28 tons of road salt. This equates to an average of 226 pounds of
salt per lane mile per event. We have had 19 events year to date for the
2017-2018 winter plow season.
Current Circumstances
The 2018-2019 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 1800 tons of salt, this amounts
to a savings of $9,000 annually. The City received an email from the State
of Minnesota Office of Procurement Tuesday March 22, 2018 that requires
all participants in the CVP to have their estimated salt quantities into the
CVP by March 29, 2018 to be part of the 2018-2019 agreement.
Conclusion
Similar to previous years, staff is recommending joining the Cooperative
Purchasing Agreement as a key component of our street maintenance
program. Continued cooperative purchasing will help reduce the cost to
the residents of Prior Lake.
ISSUES: The fundamental reason for performing this contract through the CPV is to
get better products for the least expensive prices. In addition, we have
2
learned how to increase the effectiveness and therefore minimize the
amount of salt we have to purchase by liquefying it and spreading on the
roadways in a brine solution.
We also find that the oversight and administration of the contract is
considerably easier when it is completed in collaboration 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 accomplish day-to-day responsibilities. This is an excellent
example of this practice.
Under the terms of the city code, the city manager can make purchases up
to $20,000 without council authorization. Salt purchases often exceed this
amount so this process also helps to assure that we have sufficient salt on
hand since we can restock provided we stay within the total tons
authorized by the city council.
We expect to purchase 1800 tons of salt under this CPV for the upcoming
season. This equates to $107,000. This amount is contained in the street
department budget.
ALTERNATIVES: 1. Adopt the resolution authorizing the City Manager to Execute the
annual Contract 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 18-___
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 1800 ton at an
estimated value of $106,993 of white road salt for the 2018-2019 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 2018-2019 General Fund Budget 101-43100.00-52054.00
PASSED AND ADOPTED THIS 2ND DAY OF APRIL 2018
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager