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TO: Honorable Mayor and Members of the Common Council FROM: Steven M. Gohde, Assistant Director of Public Works/Utilities General Manager DATE: July 23, 2024 SUBJECT: Res 24-419 Approve Purchase of Road Salt for Winter 2024-2025 for the Department of Public Works through WDOT from Compass Minerals ($261,210)

BACKGROUND

The Wisconsin Department of Transportation (WDOT) solicits bids each year for sodium chloride to be used as a de-icing agent.  Local units of government are invited to participate with this State contract and benefit from the purchase power of a combined quantity of road salt, resulting in lower prices.   The City of Oshkosh has participated with this program since 1998.  To participate in the 2024-2025 road salt bid, we guaranteed a minimum purchase of 2,500 tons, with an option for an additional 500 tons of salt.

ANALYSIS

Compass Minerals has been awarded the 2024-2025 WDOT road salt contract for our area.  Based on our guaranteed seasonal fill of 2,500 tons and a reserve amount of 500 tons, we will be charged $87.07/ton for a projected expense of not more than $261,210.  The price per ton for the past five (5) years is shown in the table below.  These road salt purchases are made throughout the winter season as quantities are used and additional storage space is made available.  Funding for road salt purchases is included in the Streets Division Operating Budget (01000430-6543 / Streets-Road Salt).   Season Rate ($/ton) 2023-2024 $83.72 2022-2023 $76.81 2021-2022 $79.41 2020-2021 $77.10 2019-2020 $74.13

FISCAL IMPACT

There is currently $72,331.83 remaining in the 2024 Operations Budget.  Our contract with WDOT does not contain a guaranteed “early season” delivery this year, as the salt shed is at capacity.  Funds will be budgeted in the 2025 Operations Budget to purchase the guaranteed seasonal fill of 2,500 tons and the reserve amount of 500 tons, per the current contract.  This will require an outlay in the 2025 Operations Budget of $261,200 for salt purchase, with additional funding being allocated for a fall of 2025 “early season” fill.

Attachments Res 24-419

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