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Home My WebLink About8.2 Motion to Accept State bid results for road saltBoardDocs® Pro Page I of 2 Agenda Item Details Meeting Nov 07, 2018 - REGULAR MEETING OF THEM UT PROSPECT VILLAGE BOARD - 7:00 p.m. '• 8. VILLAGE MANAGER'S REPORT Subject 8.2 Motion to accept State bid results for road salt in an amount not to exceed $316,764. Access Public Type Action Preferred Date Nov 07, 201g Absolute Date Nov 07, 2018 Fiscal Dollar Amount 316f764.00 Budgeted Yes •• • Motor Fuel Tax Fund, General Fund Recommended Action Accept the State of Illinois Joint Purchasing Contract unit price of $58.66 per ton for bulk road salt and authorize staff to enter into a contract with Cargill Incorporated Salt Division of North Olmsted, Ohio. Public Content The proposed contract provides for procurement of bulk road salt material for street de-icing operations during the 2018 / 2019 winter season. The public works department utilizes road salt to de-ice Village streets during the snow season. Typically, 4,500 tons of salt are applied each winter. The department routinely purchases road salt 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 (5) winter seasons the Village has received favorable pricing through the State of Illinois Joint Purchasing Program with an average price of $55.46 per ton. The highest price was $75.79 per ton during the winter of 2014/2015. The lowest price was $44.08 per ton during the winter seasons of 2016/2017 and 2017/2018. The State of Illinois opened bids for road salt on July 24, 2018. The successful bidder was Cargill Incorporated Salt Division of North Olmsted, Ohio with a bid of $58.66 per ton. The State of Illinois Joint Purchasing Program contract requires the Village to purchase a minimum of 80% of the bid quantity (3,600 tons). The contract also allows the Village to purchase a maximum of 120% of the contract quantity (5,400 tons). The bid amount of $58.66 per ton represents a 33.1% increase over last winter's price of $44.08 per ton. Although notably higher than last year's cost, the bid price of $58.66 is one of the lowest prices the Village has received over the last 10 years. The 2016/2017 and 2017/2018 price of $44.08 per ton was unusually low and is an historical anomaly. Increased costs for road salt are uniformly evident throughout the region and are primarily attributable to higher transportation costs. https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login 11/9/2018 BoardDocs® Pro Page 2 of 2 The Village, along with several neighboring communities (Des Plaines, Morton Grove, Palatine and Park Ridge) received bids between $58.00 per ton and $59.00 per ton which represent the lowest prices in the State of Illinois Joint Purchasing Program. This program includes pricing for approximately 500 municipalities, townships, counties, and other government agencies. The vast majority of participants received pricing exceeding $62.00 per ton. Currently the Village has approximately 4,000 tons of salt in storage (dome is 73 percent full), which in conjunction with the procurements available through the State of Illinois Joint Purchasing Program, would give the Village access to 9,400 tons of salt for the 2018/2019 snow season. The most salt used by the Village in one winter season is 6,000 tons, which occurred during the winter of 2013/2014. The proposed contract is for a one (1) year term with an option to extend for one (1) additional year. It offers a one (1 year renewal if requested by the Village and agreed upon by the vendor. Staff will review the current price of $58.66 i 2019 and request renewal should market indicators suggest prices will remain the same or increase. I Cargill has provided bulk road salt to the Village through the State of Illinois Joint Purchasing Program in the past. Cargill's performance, as well as the quality of road salt, has been acceptable in all cases. $316,764 has been budgeted for the procurement of road salt during the 2018/2019 winter season. I 1. Accept State of Illinois joint bid results for bulk road salt. 2. Action at discretion of Village Board. Staff Recommendation Staff recommends that the Village Board accept the State of Illinois Joint Purchasing Contract unit price of $58.66 per to for bulk road salt and enter into a contract with Cargill Incorporated Salt Division of North Olmsted, Ohio. i Staff also recommends that the Village Board authorize staff to extend this contract for one (1) year at the same unit pri if market conditions warrant. I Cargill Award CY-18-19 (002).pdf (293 KB) Administrative Content Executive Content Motion & Voting Accept the State of Illinois Joint Purchasing Contract unit price of $58.66 per ton for bulk road salt and authorize staff to enter into a contract with Cargill Incorporated Salt Division of North Olmsted, Ohio. Motion by Michael Zadl, second by Richard Rogers. Final Resolution: Motion Carries Yea: William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli, Michael Zadel https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login 11/9/2018 . flo Thank You, Opt -Out-> Our unit does not want to participate in the CY' 2018-2019 Contract Procurement. — But keep on mailing 4st, Notice:-'�- Please complete and return the Contact information below to remain on the mailing list. Joint Purchasing 9� L3720-3720 Date: 03 ,,, 16 � 2018 Government Unit� Village of Mount Prospect Delivery Point Mailing Address. 1700 West Central Road Provide DelivIII ery Details To Contract Vendor At Time Of Order Placement City I State p: Mount Prospect, IL 60056 0/ County: Cook Contact Person: Jason Leib Telephone Number. 847-870-5640 Fax Numben 847-253-9377 Contact Email. jlelb@rnountprospect,org <- Please provide Email Address Participant, Complete Only One - Either "Table -A" or "Table -B" Below Table A: Complete this table to have the State "SOLICIT BIDS" for your governmental entity --------------- - --- ITEM DESCRIPTION BID QUANTITY 41 UNIT MEASURE AASHTO M143 Road Salt orEguivalent total tonnage) Lal=_ 25 Ton/ Truck -1 ,Rock Salt, Bulk 4,500 -0- Tons PP ep 8 0 Please note your Purchase Commitment Percentage for Total Tonnage Quantity as stated above (choose one): OPTION I X 80.�,'D'. minimum purchase requirement/ 120% maximum purchase requirement .......... I OPTION 2 .......... 100 o minimum purchase requirement/ 1 20?,o' maximum purchase requirement ParticipantComplete Only0ne-EitherlTable-A" Aboveor"Table-B" Below*********** Tahle B: Complete this t able to have the State "RENEW" Requirements for your governmental entity ITEM DESCRIPT16N UNIT MEASURE AASHTO M143 Road Salt or Eguivalent (Total Tonnage) (22 25 on/Truck) Rock Salt, Bulk Tons MINOR 4' NO I certify that funds are available for the purchase of the items on this Requisition and that such items are for the sole use of this governmental unit, and not for personal use of any official or individual or re -sale. In addition, I agree to abide by the Joint Purchasing Procedure established by the Department or Central Management Services. SIGNATURE OF AUTHORIZED OFFICIAL OR AGENT TITLE Printed on Recvcled Paper PLEASE RET1AN TO: Illinois Department of IL INOIS Central Management Services 801 Wm. G. Stratton Building 401 S. Spring Street JOINT PURCHASING REQUISITION 1pringfield, IL 62706 CYI 8-19 New Purchase Commitment Email Address for submission: CM&BOSS.E04411inois.g.ov . flo Thank You, Opt -Out-> Our unit does not want to participate in the CY' 2018-2019 Contract Procurement. — But keep on mailing 4st, Notice:-'�- Please complete and return the Contact information below to remain on the mailing list. Joint Purchasing 9� L3720-3720 Date: 03 ,,, 16 � 2018 Government Unit� Village of Mount Prospect Delivery Point Mailing Address. 1700 West Central Road Provide DelivIII ery Details To Contract Vendor At Time Of Order Placement City I State p: Mount Prospect, IL 60056 0/ County: Cook Contact Person: Jason Leib Telephone Number. 847-870-5640 Fax Numben 847-253-9377 Contact Email. jlelb@rnountprospect,org <- Please provide Email Address Participant, Complete Only One - Either "Table -A" or "Table -B" Below Table A: Complete this table to have the State "SOLICIT BIDS" for your governmental entity --------------- - --- ITEM DESCRIPTION BID QUANTITY 41 UNIT MEASURE AASHTO M143 Road Salt orEguivalent total tonnage) Lal=_ 25 Ton/ Truck -1 ,Rock Salt, Bulk 4,500 -0- Tons PP ep 8 0 Please note your Purchase Commitment Percentage for Total Tonnage Quantity as stated above (choose one): OPTION I X 80.�,'D'. minimum purchase requirement/ 120% maximum purchase requirement .......... I OPTION 2 .......... 100 o minimum purchase requirement/ 1 20?,o' maximum purchase requirement ParticipantComplete Only0ne-EitherlTable-A" Aboveor"Table-B" Below*********** Tahle B: Complete this t able to have the State "RENEW" Requirements for your governmental entity ITEM DESCRIPT16N UNIT MEASURE AASHTO M143 Road Salt or Eguivalent (Total Tonnage) (22 25 on/Truck) Rock Salt, Bulk Tons MINOR 4' NO I certify that funds are available for the purchase of the items on this Requisition and that such items are for the sole use of this governmental unit, and not for personal use of any official or individual or re -sale. In addition, I agree to abide by the Joint Purchasing Procedure established by the Department or Central Management Services. SIGNATURE OF AUTHORIZED OFFICIAL OR AGENT TITLE Printed on Recvcled Paper CMS ILLINOIS Bruce Rauner, Governor DEPARTMENT OF CENTRAL MANAGEMENT SERVICES Tim McDevitt, Acting Director October 15, 2018 Dear Joint Purchasing Participant: Subject: 2018 - 2019 Rock Salt, Bulk Contract Information In completing the 2018 — 2019 Rock Salt season contract re -procurement, the State of Illinois did not encounter the types of supply -related issues experienced in the previous seasons. We have made every effort to secure Road Salt at the best available price for participants in our contract solicitation and gladly report the State was able to obtain an offer for your location requirements through the State's procurement efforts. We again recommend that participating agencies and governmental entities examine their application rates and roadway priorities in order to minimize next season's maintenance program cost while also ensuring the safety of the public. Enclosed is a copy of the requisition you submitted to us for the purchase of rock salt. The information from the requisition, including purchase commitment, can be used to submit your requirements to this year's contract vendor: BidBuy PO# 18-416CMS-BOSS4-P-4129 Cargill Incorporated Salt Division 24950 Country Club Blvd., # 450 North Olmsted, OH 44070 Phone (800) 600-7258 Term: October 2018— October 2019 FEIN Number: 41-0177680 Contact: Government Services Your unit is Contract Line No: —7 9 _ / Price per ton F.O.B. destination, is $ 5 8 . 6 6 Emergency pickup of salt from vendor's warehouse is not made available in this contract. The additional price per ton to have rock salt delivered in trucks equipped with coal/grain chute openings in the tailgate to permit controlled off-loading of rock salt onto conveyors was not provided for by this vendor in this season's procurement process. You are responsible for issuing your own purchase order document to the vendor. Orders may be placed with the vendor via telephone, with a written or fax confirmation to follow immediately. You are strongly encouraged to order and store as much salt as possible in order to help prevent potential salt shortages this winter. Also, you must place orders in full truckload ( typically 22-25 tons ) delivery quantities or multiples of such. 801 Stratton Office Building, 401 South Spring Street, Springfield, IL 62706 Printed on Recycled Paper Your governmental unit is responsible for ensuring that the 80 or 100 percent minimum guaranteed purchase commitment ( as noted on your Requisition ) is met before the end of the winter season, June 30, 2019. The vendor is required to furnish not less than 120 -percent ( if needed ) of the contract quantity by March 1, 2019. Your governmental unit is responsible for processing vendor invoices in a timely manner. Delivery shall be made as soon as possible after vendor receipt of order by phone or mail. The maximum time from receipt of order to the actual delivery for orders placed between December 1, 2018 through April 1, 2019 shall not exceed seven working days, unless as modified in the Order Guidelines herein. For orders placed between December 1, 2018 and April 1, 2019, if a vendor is unable to make delivery within the order timeline, local governmental units shall have the right to retain as liquidated damages, not as a penalty, 5.% per working -day on the undelivered portion of the order, but not to exceed 50.%. For orders placed prior to 9:00 a.m. on a given day, that day to be considered as the first calendar day of the seven-day delivery period. For an order placed after 9:00 a.m. on a given day, the following day shall be considered as the first calendar day of the seven-day delivery period. CMS reserves the right to mitigate application of liquidated damages imposed against a vendor, in the event of orders exceeding the maximum percentages outlined below: An agency may order up to 20.% of their awarded contract tonnage in any given week and vendor shall deliver within 7 working -days after receipt of order. Quantity ordered above the 20.% threshold shall have an extended deliver time of one -working -day for each one -percentage - point above the 20.% guideline. For example, if an agency orders 25.% of their awarded total 100 ton, delivery of the first 20 ton( 20.% ) shall be within 7 working -days after receipt of order, the remaining 5 ton should be delivered within 12 working -days after receipt of order. If after seven working -days of liquidated damages assessment, the vendor has still failed to deliver, local governmental unit shall have the right to terminate an order and purchase road salt or abrasives from another source, or take action consistent with public safety as needed to continue daily business. Any and all additional costs incurred may be collected from the original vendor, in addition to liquidated damages, by participant's legal action. All deliveries shall be covered with approved weatherproof materials. The vendor shall ensure that delivery person inspects the inside of the trailer and that all salt is removed from the trailer before leaving a delivery point. The vendor will ensure all weights and measures shown on delivery tickets are correct. Local governmental units reserve the right to require that delivery trucks occasionally be directed to a scale in the vicinity of the delivery point as a check on delivered truckloads. Deliveries of rock salt containing any foreign material such as mud, rocks, grader teeth, wood, tarpaulins, etc., may be rejected at the delivery site. In the event that any foreign material is discovered in dumped deliveries, the salt and foreign matter may be reloaded onto the cartage hauler's truck by the local governmental unit and returned for credit, or the vendor shall immediately ship a specification compliant load of replacement salt, or issue a refund to the governmental unit consistent with the contract price. In December 2018, the contract vendor shall have in place stockpile(s) located in or near Illinois covering the tonnage awarded for the northern regions of the State, and in January of 2019 the contract vendor shall have in place stockpile(s) in or near to Illinois covering the total tonnage awarded for all regions of the State. At our discretion, we will inspect the stockpiles to ensure that these stockpiles are in sufficient quantities, and that vendor commitments to the stockpiles are with the users of this contract. Enhanced rock salt 2018 - 2019 season availability: The Department of Central Management Services surveyed vendors for availability of an enhanced rock salt option in the invitation for bid, and received an offering from Cargill Salt Division. Locations interested in this enhanced salt option must call the vendor for product availability information and to facilitate potential ordering arrangements. Their product is made available to any joint purchasing participant awarded in the Cargill Salt Division Contract as an up -charge per ton option and would be added to your order as a separate line item. Contact Stacy Bruzda: 800-600-7258 for salt availability details. The enhanced salt product features additional pre-treatment of approved road salt with a product providing enhanced melting performance, with reduced corrosion and clumping. It is hoped that this information will be beneficial to you in the utilization of this contract. If you have any further questions concerning the rock salt contract, please feel free to contact me at (217) 782-8091. Sincerely, Wayne Ilsley, CPPB, Buyer Bureau of Strategic Sourcing GovSalt.doc Joint Purchasing Participant. BidBuy is the new procurement system implemented by the State Of Illinois, in which this Master Blanket Purchase Order ( Master Contract ) was re-established. As a municipality® you do not need to register in BidBuy. To access master contracts you only need to follow the steps outlined in the following document. Locating State Wide Master Contracts (without registration in BidBuy) ( To begin you just click on the'Contract & Bid Search' as shown below.) Screen Task To BidBuy o https://www.bidbuy.illinois.gov/bso/ Homepage BidBuy Click Contract & Bid Search at bottom of screen Homepage Advanced Search Select radio dial next to Contracts/Blankets Advanced Search PQ Enter Search Criteria or enter nothing to receive all contracts -�) Click Find It Advanced Search Click on Contract/Blanket# (underlined) to show contract information Master Blanket Verify Field "Master Contract?" =Yes Purchase Order Click on Copy of contract (underlined) next to Agency Under Header Attachment field to download contract document Information To Exit In BidBuy Click Exit at bottom of screen Advanced Search Click Exit at bottom of screen to return to BidBuy homepage