Staff recommends that City Council approve the purchase of winter traction material from Knife River at a unit price of $28.00 per ton for an initial one-year term, with the option to extend purchases for up to two additional one-year terms upon mutual agreement between the City and Knife River.

Council is requested to approve the purchase of winter traction material from Knife River at a cost of $28.00 per ton for an initial one-year term, with the option to extend for two additional one-year terms at $29.00 and $31.00 per ton, respectively, upon mutual agreement. Winter traction material is essential to the City's snow and ice control operations, with approximately 4,000 to 6,000 tons used annually to maintain safe and passable roadways. Although Knife River was the only bidder, staff considers the pricing fair and reasonable, as the first-year price is unchanged from the City's previous contract. Sufficient funding is available in the approved FY27 Street and Traffic budget to support the purchase.

The approved FY27 Street and Traffic budget includes funding for the purchase of winter traction material used as part of the City's annual snow and ice control operations. The Public Works Department applies winter traction material to City streets and roadways to improve vehicle traction, reduce slippery conditions, and maintain safe and passable roadways during winter weather events. The material, consisting of a salt and sand mixture, is the City's most frequently used product for winter roadway maintenance and plays a critical role in maintaining mobility and public safety throughout the winter season.

The amount of winter traction material used each season varies depending on the frequency, duration, and severity of winter weather events. On average, the City uses approximately 4,000 to 6,000 tons of material annually. Maintaining an adequate supply is essential to ensuring that Street and Traffic crews can respond effectively to snow and ice conditions throughout the winter months.

The City solicited competitive bids for the purchase of winter traction material, with advertisements published in the Yellowstone County News and on the City's website on September 18 and September 25, 2026. Bids were opened on October 6, 2026, and one bid was received from Knife River.

The following bids were received:

Vendor	Price per ton each Year
Knife River	$28.00/Ton Year 1
Knife River	$29.00/Ton Year 2
Knife River	$31.00/Ton Year 3

Although Knife River was the only bidder, staff considers the proposed pricing to be fair and reasonable based on historical purchase costs. The Year 1 bid price of $28.00 per ton is identical to the price paid under the City's previous contract, demonstrating that pricing has remained stable despite increases in material, labor, and transportation costs. The proposed prices for Years 2 and 3 represent modest increases and provide the City with predictable pricing for future purchases, should the City elect to extend the agreement. Funding for winter traction material is included in the approved FY27 Street and Traffic budget. Sufficient funds are available to support the anticipated material purchases, and no additional appropriation is necessary.

City Council may:

• Approve the award for the purchase of the winter traction material; or
• Not approve the purchase.  If the purchase is not approved, the Public Works Department will not have adequate reserves to be able to place sand for traction control this winter which will increase safety concerns and lower service levels.