HomeMy WebLinkAbout5H Salt Purchases 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 1, 2019
AGENDA #: 5H
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
GOAL AREA AND
OBJECTIVE:
High-Value City Services
5. Grow collaborations to provide efficient and cost-effective services to the
community.
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 2019-2020 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 2018-2019 winter plow season the City used 1,485 tons of road salt. This
equates to an average of 180 pounds of salt per lane mile per event which, is a
1.3% reduction in salt used on city streets. We have had 27 events year to date
for the 2018-2019 winter plow season.
Current Circumstances
The 2019-2020 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
Wednesday March 20, 2019 that requires all participants in the CVP to have their
estimated salt quantities into the CVP by April 2, 2019 to be part of the 2019-2020
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 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.
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 19-___
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 tons at an
estimated value of $127,548 of white road salt for the 2019-2020 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 2019-2020 General Fund Budget 101-43100.00-52054.00
Passed and adopted by the Prior Lake City Council this 1st day of April 2019.
VOTE Briggs Thompson Burkart Braid Erickson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Michael Plante, City Manager