HomeMy WebLinkAbout6. MANGERS REPORT 03/18/2008
Mount Prospect
Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
FROM:
DIRECTOR OF PUBLIC WORKS
-'Bb. K..,.,
~lleJee
TO:
VILLAGE MANAGER MICHAEL E. JANONIS
DATE: MARCH 12,2008
SUBJECT: RATIFY EMERGENCY PURCHASE OF ROAD SALT:
OCEANPORT LLC - $22,889.60/AMERICAN ROCK SALT - $48,421.68
BACKGROUND
From 1990 to 2006 the Village of Mount Prospect purchased road salt through the State Joint
Purchasing Agreement. In 2006 road salt prices throughout the state ranged from a low of
$36.70 per ton to a high of $44.66 per ton. Prices varied by vendor and the distance from the salt
yards to the point of delivery. Mount Prospect's cost was $44.66 per ton which in 2006 was a
33% increase over the $33;57 per ton paid in 2005.
Historically annual increases through the state contract are strongly influenced by how much salt
was used the previous season. Until this year the 2006/07 winter season was one of our highest
salt usage years in some time. A total of5,635 tons of road salt were purchased compared to our
average of 4,000 tons. Several communities around us do not purchase salt through the State
contract and in 2006 paid significantly less than we did. Therefore we thought it would be worth
the risk to solicit our own bids for road salt for the 2007/08 winter season.
Bid specifications were developed using the State's and the Village of Arlington Height's
specifications as a guide. One major difference between the State and Arlington Height's
specifications was the quantity of road salt that can be purchased during the term of the contract.
The State requires the purchase of a minimum of 70% of your estimated request to a maximum
of 130% of your estimated request. Arlington Height's specifications on the other hand,
included an estimated request, but no minimum and no maximum quantity. We went with the
Arlington Height's specifications.
On April 16, 2007 we open bids for the 2007/08 Road Salt Contract and on May 1, 2007 the
Village Board awarded a contract to North American Salt for the purchase of an estimated
quantity of 4,000 ton of road salt at the unit price of $45.81/ton. This was a 2.6% increase over
the 2006 State price of $44.66/ton.
TO:
SUBJECT:
VILLAGE MANAGER
RATIFY EMERGENCY PURCHASE OF ROAD SALT: OCEANPORT LLC - $22,889.60/AMERICAN ROCK SALT-
$48,421.68
MARCH 12,2008
PAGE 2
DISCUSSION
The 2007/08 winter snow fall accumulations have been record breaking. As of February 1,2008
we have purchased and used 5,361 ton of road salt. This is 134% of our 4,000 ton estimate. Salt
supplies throughout the Chicago area are completely depleted and North American Salt (NAS)
has refused to deliver any more salt, saying we have exceeded our 130% over estimated quantity.
We reminded NAS that the terms of our contract are different from the State's and we have no
limit. They still have refused to deliver any additional quantities of road salt. This matter has
been turned over to the Village Attorney, who is currently in contact with NAS's attorney and
are negotiating a settlement agreement. In the mean time there were still two more months of
winter and we were nearly out of salt.
With the help of the Northwest Municipal Conference (NWMC) and Trustee Zadel, we were
able to purchase 650 ton of road salt. 143 ton were purchased from Oceanport LLC, Claymont,
Delaware (the NWMC contact) at $160/ton and 507 tons were purchased through the State of
Illinois Department of Central Management Services from American Rock Salt, Buffalo, New
York (Trustee Zadel's contact) at $95.61/ton. These purchases were both made as an emergency
purchase and authorized by the Village Manager.
RECOMMENDATION
I am now requesting the Village Board ratify the emergency purchase of 650 ton of road salt and
authorize payment of $22,889.60 to Oceanport, LLC and $48,421.68 to American Rock Salt. To
date we have spent approximately $330,000 for road salt, liquid calcium, and Geomelt (beet
juice) for the 2007/08 winter season. There are currently $87,500 remaining of the $163,390
budgeted for 2008. In addition to the $71,311.28 payment above, we still owe NAS $66,285.00
and there is the need to purchase additional salt for this December, the start of the 2008/09 winter
season. A future budget amendment will be requested in the near future to cover this budget
shortfall.
~.
Director of Public Works
c: Director of Finance Dave Erb
File
H:\Administration\ADMIN\MEMOS\Ratfy Ermergency Purchase of Road Salt 3-12-08.doc