HomeMy WebLinkAbout10/06/2015 2015/2016 Road Salt ContractNTount Prospect
Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO: ACTING VILLAGE MANAGER, DAVID STRAHL
FROM: SUPERINTENDENT OF STREETS & BUILDINGS
DATE: SEPTEMBER 21, 2015
SUBJECT: 2015/2016 ROAD SALT CONTRACT ($327,294)
BACKGROUND
The public works department utilizes road salt for street de-icing operations during the snow
season. The department typically utilizes approximately 4,500 tons of a salt during a winter
season. We routinely purchase road salt for our winter snow and ice control efforts through the
State of Illinois Joint Purchasing Program. It has been our experience that vendors supplying
salt for this program have consistently maintained adequate stockpiles and offered acceptable
delivery terms at competitive prices.
Over the last five winter seasons the village has received favorable pricing through the State
contract with an average price per ton of $60.01. The highest price in the last five years was
$75.79 during the winter of 2014/2015. The lowest price paid for salt in the last five years
$52.74 during the winter seasons of 2012/2013 and 2013/2014.
BID RESULTS
The State of Illinois opened bids for road salt on July 1, 2015. The village was notified that the
State did receive a responsive bid to provide road salt to the village for the 2015/2016 snow
season. The successful bidder was Morton Salt, Inc. of Chicago, IL with a bid of $60.61 per ton.
DISCUSSION
Morton Salt has been the successful bidder each of the last five winter seasons. In addition,
Morton Salt has also helped provide salt in other years when contracted suppliers could not
satisfy village orders due to regional salt shortages. Morton Salt's performance, as well as the
quality of the road salt, has been acceptable in all cases.
The bid received was for a total of 4,500 tons of salt with the contract requiring the Village to
purchase a minimum of 80% of the bid quantity (3,600 tons); however, the contract allows for
the village to purchase a maximum of 120% of the contract quantity (5,400 tons). The bid
amount of $60.61 represents a 20% decrease over last winter's price of $75.79 per ton.
Currently the Village has approximately 1,200 tons of salt in storage, which in conjunction with
the state contract would give the village access to 6,600 tons of salt for the 2015/2016 snow
season. Initial winter weather predictions foresee below average snow amounts and higher
than average temperatures.
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2015/2016 Road Salt Contract ($327,294)
September 24, 2015
RECOMMENDATION
Staff recommends that the village accept the State of Illinois Joint Purchasing Contract unit
price of $60.61 per ton for bulk road salt and enter into a contract with Morton Salt, Inc. of
Chicago, IL. Salt purchases will not exceed $327,294 without further Village Board approval.
The State contract offers a one year renewal if requested by the Village and agreed upon by the
vendor. Staff will review the current price of $60.61 in 2016 and request renewal should the
market indicators show that prices will remain the same or possibly increase.
With your concurrence, please forward this to the Village Board for their approval.
Superintendent of Streets & Buildings
I concur:
Sean P. sey
Direct of Public Works
pb/PB
cc: Director of Public Works Sean P. Dorsey
Deputy Director of Public Works Jason Leib