HomeMy WebLinkAbout11/07/2018 Accept State Bid Results for Road Salt
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Agenda Item Details
MeetingNov 07, 2018 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m.
Category8. VILLAGE MANAGER'S REPORT
Subject8.2 Motion to accept State bid results for road salt in an amount not to exceed $316,764.
AccessPublic
TypeAction
Preferred DateNov 07, 2018
Absolute DateNov 07, 2018
Fiscal ImpactYes
Dollar Amount316,764.00
BudgetedYes
Budget SourceMotor Fuel Tax Fund, General Fund
Recommended ActionAccept 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
Information
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.
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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 in
2019 and request renewal should market indicators suggest prices will remain the same or increase.
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.
Alternatives
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 ton
for bulk road salt and enter into a contract with Cargill Incorporated Salt Division of North Olmsted, Ohio.
Staff also recommends that the Village Board authorize staff to extend this contract for one (1) year at the same unit price
if market conditions warrant.
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 Zadel, second by Richard Rogers.
Final Resolution: Motion Carries
Yea: William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli, Michael Zadel
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