Title
RESOLUTION AUTHORIZING THE PURCHASE OF 13,600 TONS OF ROAD SALT FROM MORTON SALT, INC. IN THE AMOUNT OF $851,648 FOR THE 2024-25 WINTER SEASON.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to purchase up to 13,600 tons of road salt from Morton Salt, Inc. for the 2024-25 winter season in the amount of $851,648, payable from 110-500-1920-5223-01 (general fund, public works and utilities, street maintenance, salt and sand salt).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the tax-exempt purchase of 13,600 tons of road salt for the 2024-25 winter street maintenance season in the amount of $851,648. The City uses a salt/sand mixture to provide for safe and efficient transportation on the City’s roadways.
Salt pricing varies based on delivery location as listed below. Prices reflect a 4% increase from the 2023-24 season.
105 North 40th Avenue West $61.52 per ton
1123 Mesaba Avenue $62.48 per ton
2407 Commonwealth Avenue $70.92 per ton
3525 Riley Road $65.46 per ton
This purchase is against Minnesota State Contract 230570, Release S-763(5). Per contract, the City is required to provide an estimate of tons of salt needed for the entire season, and is obligated to purchase at least 80 percent of that estimated total. The vendor is contractually obligated to provide up to 120 percent of the estimated total. Estimates are based on a five-year average. Estimated usage for last season was 13,600 tons with actual orders of 1,494 tons in fall 2023 and 8,555 tons in spring 2024 for a total of 10,049 tons. This season’s estimate is 13,600 tons.