CITY MANAGER AUTHORITY PROCUREMENT AWARDS
ACTION REQUESTED:
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Approve the award of Change Order #1 to Cooperative Procurement 20-370, Rock Salt, to Cargill Inc. for an amount not to exceed $5,000 and a total award of $609,512
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BACKGROUND:
The Department of Public Works (DPW) uses roadway salt for winter operations to maintain safe roadways. Over the past ten years, the City has used an average of 14,000 tons of salt per year. During the 2020/21 winter season, the City used approximately 12,550 tons of salt.
The City Council awarded Cooperative Procurement 20-370, Rock Salt to Cargill Inc. on October 27, 2020. The purpose of this procurement is to maintain the City's policy to have both salt domes substantially full at the beginning of the winter season so that, at a minimum, it is prepared for an average to moderately heavy winter season. Roadway salt was purchased under the State's Joint Purchasing Program. Under this program, the City was able to purchase 14,400 tons of salt at $41.98 per ton, a 56% decrease from the 2019-20 price of $94.63 per ton. .
DISCUSSION:
During the 2019/20 winter season, DPW used approximately 9,000 tons of salt and purchased the maximum allowed under the State contract. When deliveries for salt are received, the amount delivered per truck varies depending on the size of truck used. Due to this variance, over the course of the season, the City took delivery of approximately 100 additional tons of salt over the award amount of 14,400 tons. Change Order #1 is requested to add the necessary funds to pay the final invoice.
FISCAL IMPACT:
CIP #: N/A
Roadway salt is expensed to the salt and chemicals account listed below. A total of $604,512 is budgeted for salt in 2021. The requested change order award of $5,000 is available due to savings from other winter operation expenses such as roadway contractors.
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