Title
RESOLUTION AUTHORIZING A PURCHASE FROM COMPASS MINERALS AMERICA FOR AN ADDITIONAL 2,000 TONS OF ROAD SALT FOR SPRING 2016, AN INCREASE OF $124,280, AND A TOTAL PURCHASE PRICE OF $612,186.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to purchase an additional 2,000 tons of road salt from Compass Minerals America to be used in spring 2016, an increase of $124,280, and a total purchase price of $612,186, payable from General Fund 110, Public Administration 121, Maintenance Operations 1217, Street Maintenance 2140, Salt & Sand Salt 5223-01.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the tax-exempt purchase of an additional 2,000 tons of road salt for spring 2016 in the amount of $124,280 from Compass Minerals America for a total purchase amount of $612,186.
The original purchase of 7,900 tons was presented to City Council, Resolution 16-0014R, and passed on January 11, 2016.
This purchase is based on Minnesota State Contract 77779, Release S-987(5). The 2015/2016 price for road salt is $62.14 per ton. The price for the 2014/2015 season was $60.86 per ton. The City uses salt during the winter season to deice the roads for the prevention of accidents. We also mix some amount of sand with the salt to use on the roadways.
The City used 5,927 tons of salt in spring of 2015. The City ordered 5,100 tons for fall 2015 and 7,900 tons for spring 2016. We have used 7,367 tons of road salt to date. The additional 2,000 tons is needed for the remainder of spring 2016. The crews have been called out 24 times since January, using an average of 150-200 tons per snow event.
Road salt is ordered based on a 5 year average usage. We are obligated to purchase 80% of the salt we order and the vendor must provide up to 120% of the amount ordered.