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A RESOLUTION AUTHORIZING THE CITY MANAGER TO CONTRACT FOR THE PURCHASE OF ROAD SALT THROUGH THE COMMUNITY UNIVERSITY EDUCATION PURCHASING ASSOCIATION (C.U.E.) PROGRAM AND TO PURCHASE SALT CONVEYANCE SERVICES FOR THE 2012-2013 WINTER SEASON; AND DECLARING AN EMERGENCY
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Executive Summary
Due to lower unit costs per ton of road salt, traditionally the Public Works Department purchases winter road salt from the Community, University and Education (CUE) cooperative purchasing program. By doing so, the City has the potential to realize savings versus seeking public bids on our own.
Legislative History
Resolution # 12-04, January 18, 2012: Permission to bid and/or obtain competitive pricing,
Purpose & Explanation
Salt Purchase Vendor
CUE received a road salt purchase contract renewal from Cargill Inc. for the purchase of road salt for the 2012-2013 snow season. CUE members will pay $44.81 per ton for dumped road salt. The 2012-2013 price renewal did not increase from the 2011-2012 rate. With an estimated road salt use of 10,000 tons for the 2012-2013 season,, we would estimate potential expenditures for road salt purchases to total $448,100 depending on the severity of the winter season.
Salt Conveyor Vendor
To maximize the salt storage capacity of our single salt dome (3,800 tons), we need to have the salt conveyed into the salt dome. Through CUE we have received conveyance quotes from Cargill Inc. and Kolenz Transport, Inc. to convey salt which is delivered by Cargill. Below is a price breakdown comparison:
Vendor 1: Conveyed by Cargill: $4.15/ton
Vendor 2: Conveyed by Kolenz: $3.30/ton (net savings over Vendor 1 = $0.85 x 10,000 tons = $8,500)
Timing Considerations
Upon City Council approval the Public Works Staff will execute the CUE road salt purchase agreement and salt conveying services contract for the 2012-2013 season (September 2012 to September 2013).
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
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