HomeMy WebLinkAbout10/04/2016 State Bid Results for Road SaltItem XI. B.: MOTION TO ACCEPT STATE BID RESULTS FOR ROAD SALT IN
AN AMOUNT NOT TO EXCEED $238,032
Department: Public Works Department
Information:
The proposed contract provides for bulk road salt material for street de-icing
operations during the winter season.
The public works department utilizes road salt for street de-icing activities during the
snow season. The department typically uses approximately 4,500 tons of salt
during a winter season. The department routinely purchases 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 of $60.10. 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 was $52.74 during the winter seasons of 2012/2013 and
2013/2014.
The State of Illinois opened bids for road salt on June 29, 2016. The village was
notified that the State did receive a responsive bid to provide road salt to the village
for the 2016/2017 snow season. The successful bidder was Compass Minerals
America, Inc. of Overland Park, Kansas with a bid of $44.08 per ton.
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 $44.08 represents a 37.5% decrease over
last winter's price of $60.61 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 2016/2017 snow season.
Village Board Meeting - October 4, 2016 Page 95 of 96
The contract is for a one (1) year term with an option to extend for one additiona
year.
Compass Minerals America, formerly known as North American Salt, has provided
the village bulk road salt through the State contract in the past. Compass Minerals
America's performance, as well as the quality of road salt, has been acceptable in all
cases.
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 $44.08 in 2017 and request
renewal should the market indicators show that prices will remain the same or
possibly increase.
Alternatives:
1. Accept State of Illinois joint bid results for bulk road salt.
2. Discretion of the Village Board.
Budget Impact:
The proposed project requires the expenditure of $238,032 from the Motor Fuel Tax
Fund. Sufficient funds exist in the current budget.
Recommendation:
Staff recommends that the village accept the State of Illinois Joint Purchasing
Contract unit price of $44.08 per ton for bulk road salt and enter into a contract with
Compass Minerals America, Inc. of Overland Park, Kansas. Salt purchases will not
exceed $238,032 without further Village Board approval.
SUPPORTS THE FOLLOWING STRATEGIC PLAN GOALS:
INFRASTRUCTURE: Well designed, well maintained public spaces and
facilities, GOVERNANCE: Financially sound, providing exceptional service.
ATTACHMENTS:
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Village Board Meeting - October 4, 2016 Page 96 of 96