2014-03-25_PWETC_AgendaPacket - Laserfiche WebLink

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Public Works Department/Engineering Memo To: Pat Trudgeon, City Manager From: Duane Schwartz, Public Works Director Date: 3/19/2014 Re: State Contract Ice Control Materials Purchasing The city has been purchasing ice control materials on the State of Minnesota joint purchasing contract for 25 plus years. This contract requires jurisdictions purchasing off this contract to commit to an amount of salt or materials for the following winter season prior to going to bid. The request for amounts usually occurs in April or May. The state contract is structured so once you commit to your tonnage you are required to take delivery of a minimum of 80% of the commitment and you would also be guaranteed to have 120% of your commitment available for purchase. This has worked well for the city for the past 25 years with most years falling within the range of material available. Our past average seasonal usage has been the benchmark from which to order salt from this contract in addition to our operational goals. Statewide stockpiling of these materials seasonally is based on this state contract as most jurisdictions purchase through it. Salt is typically brought in on barges and stockpiled in the summer months for the following season as it does not keep well and can be an environmental hazard. The total amount available in Minnesota for the following season is typically related to 120% of the amount committed to in the state contract and typical private usage commitments. The 2014 Street budget included $78,500 for ice control material. The 2013 -2014 base request for salt from the state contract was 1000 ton. We exercised our additional 20% option in January once it became apparent the season was extraordinary. Staff began searching for additional ice control material on January 21, 2014. At that time vendors would not commit to additional deliveries until all contracts were committed to the 120% option. Staff continued to call regularly with limited success for other ice control products. Staff has secured additional products on a hit and miss basis. These products are outside of state contract. Several times these orders have fallen through due to over commitment by vendors. To date we have expended $113,691 for ice control materials for the season. This winter was non typical in that this sustained cold weather rarely occurs. We usually get help especially in mid to late February with warming temperatures and plentiful sunshine. This has not occurred this season along with an unusually high number of events. Attached is some additional information staff has put together regarding ice control products and efforts this season.