HomeMy WebLinkAbout10.2 Motion to waive the requirement for public bidding and award a contract to Morton Salt for the procurement of road salt in an amount not to exceed $384,000.Mr�GauC �'d'+rt;�iect
Subject Motion •waive the requirement•' public
bidding •awarda contracti• Morton •
the procurement of road salt in an amount not tii
exceed $384,.000.
Meeting
Fiscal Impact
Dollar Amount
Budget Source
Category
Type
Information
November 1, 2022 - REGULAR MEETING OF THE MOUNT
PROSPECT VILLAGE BOARD -
true
$384,000.00
Motor Fuel Tax Fund and General Fund
VILLAGE MANAGER'S REPORT
Action Item
The Public Works Department utilizes road salt to de-ice Village streets during the
snow season. Typically, 5,400 tons of salt is used to make salt brine and to apply
to street surfaces for snow and ice control each winter. The most salt used in one
winter season was 6,000 tons, which occurred during the winter of 2013/2014.
Currently, the Village has approximately 5,500 tons of salt in the storage dome.
The salt storage dome is full and the department has enough salt on site to satisfy
average demand. However, staff recommends entering a procurement contract for
road salt in the event that additional road salt is needed during the 2022/23
winter season. Purchasing road salt without a contract during the winter can be
subject to severely inflated prices.
The Village routinely purchases road salt through the State of Illinois Joint
Purchasing Program. Unfortunately, due to a clerical error, the Village's request
for participation in this year's program was not processed and, subsequently, not
included in this year's bid quantities. Consequently, the Village cannot participate
in this year's state bid for road salt.
As an alternative to the state bid, staff contacted road salt vendors that
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responded to the state bid for northeastern Illinois communities. Each firm was
asked to submit a written quotation for the procurement of 5,000 tons of road salt
during the 2022/23 winter season.
A request for cost proposals was made on October 12, 2022. All of the road salt
supply firms that participated in the State of Illinois bid for northeastern Illinois
responded to the request with the exception of Cargill. Cargill declined the request
explaining that all the firm's local salt stores were already obligated for the
season. The results are indicated in the table below:
Total cost
UNTI COST
VENDOR For
PER TON
5000 tons
Morton Salt $76.80 $384,000
Compass Minerals $83.21 $416,050
Rock Salt
$99 $495,000
USA
The lowest cost price quotation was provided by Morton Salt of Chicago, Illinois at
the rate of $76.80 per ton. The terms of the offer require a 40% minimum order
(2,000 tons) procured prior to December 31, 2022. These terms are acceptable to
staff. Staff is confident that the minimum order requirement can be satisfied by
utilizing existing supplemental storage areas (the old salt bins) and by replacing
dome stores depleted during the month of December.
Morton's cost ($76.80/ton) is a 62% increase when compared to the Village's cost
for road salt during the 2021/22 winter season ($47.33/ton). However, large
increases in the cost of road salt were anticipated due to recent inflationary trends
and the fact that the cost of road salt is strongly influenced by the cost of fuel and
labor. In addition, the Village's costs for road salt during the 2020/21 and 2021/22
winter seasons were historically low.
The results of this year's state bid for road salt are not yet known. However, Lake
County also let a joint bid for road salt earlier this year for a coalition of 64
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communities and/or agencies. The returns yielded much higher prices than in
recent years. The table below presents a sample of results for communities
comparable to the Village:
Lake County DOT bid result sample of 64 participating agencies is reflected below:
Morton's price for the Village of Mount Prospect is cheaper than the lowest bid on
the Lake County bid. It is also substantially lower than the bids submitted for
communities/agencies that are comparable in size to the Village of Mount
Prospect. Although the Lake County bid historically garners slightly higher prices
than the much larger State of Illinois bid, it is the opinion of staff that these
results demonstrate inflationary trends and accurately represent the current
market. Consequently, staff is confident that the price quote submitted Morton
K
Compass
Unit of
Cargill, Inc.
Morton Salt
Minerals
Government
Per Ton
Per Ton
Per Ton
Lake County
96.73
86.46
79.27
DOT
Village of
$91.18
$88.57
$78.70
Buffalo Grove
City of
$91.21
$89.59
$83.55
Des Plaines
Village of
$89.89
$89.59
$77.87
Glenview
City of
$98.68
$89.59
$86.96
Crystal Lake
Lowest Bid:
Village of
$96.23
$84.85
$77.24
Wadsworth
Morton's price for the Village of Mount Prospect is cheaper than the lowest bid on
the Lake County bid. It is also substantially lower than the bids submitted for
communities/agencies that are comparable in size to the Village of Mount
Prospect. Although the Lake County bid historically garners slightly higher prices
than the much larger State of Illinois bid, it is the opinion of staff that these
results demonstrate inflationary trends and accurately represent the current
market. Consequently, staff is confident that the price quote submitted Morton
K
($76.80/ton) is responsive and competitive.
Morton has supplied the Village with road salt on numerous occasions in the past.
In addition, the firm has successfully participated in the state bid for decades.
Staff is confident the firm can successfully fulfill this proposed contract.
Alternatives
1. Waive the rules requiring public bidding and award a winter 2022/23 road
salt contract to Morton Salt.
2. Action at the discretion of the Village Board.
Staff Recommendation
Staff recommends that the Village Board waive the requirement for public bidding
and approve a contract with Morton Salt for the procurement and delivery of road
salt during winter 2022/23 for an amount not to exceed $384,000.
ATTACHMENTS:
3655720_VLG MOUNT PROSPECT-IL.pdf
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MORTON SALT
OCT 13, 2022
Village of Mount Prospect
Attn: Accounts Payable
50 S Emerson St
Mount Prospect IL 60056-3218
Dear Sir/Madam
MORTON SALT, INC. / CENTRAL SALT LLC is pleased to offer you the following bulk deicing salt pricing for the season
2022/2023.
Description Valid From Valid To Transport Mode Min Order
Bulk Safe -T -Salt JUL 01, 2022 APR 30, 2023 Delivered MS Dump Truck Standard UNLIMI 20 TON
5000 TON 5940058034/1280 MORTON CALUMET(CH 76.80 USD per TON
Total Tons: 5000 TON
Do you wish to change the tonnage? Yes _ No _ Upon approval, new requested tonnage is: Tons
Reason for tonnage change:
Delivered prices are based upon full truckload quantities from SELLER's location listed above to specific to the delivery
address shown below.
Any applicable taxes are extra. Terms are net 30 days. Initial order must be placed by December 31, 2022.
Tonnage Commitment: SELLER agrees to supply up to 100% of the Quoted Tonnage, and CUSTOMER guarantees to
purchase a minimum of 40% of the total Quoted Tonnage by December 31, 2022 and a minimum of 0% of the total
Quoted Tonnage by March 31, 2023. If CUSTOMER fails to purchase the minimum 40% December 31, 2022, SELLER
reserves the right to terminate this quote. SELLER will invoice CUSTOMER for any shortfall below the minimum
committed tonnage at the quoted price within thirty (30) days of the purchase deadline.
Please review your account information and advise if any changes are required:
Delivery Address:
VLG MOUNT PROSPECT -IL
1700 W CENTRAL RD
MOUNT PROSPECT IL 60056-2229
Customer #3655720
444 West Lake Street
Suite 3000
Chicago, IL 60606-0090
TEL 855.665.4540
WEB mymortonsalt.com/login
Name and Title of Customer's authorized representative:
Email Address:
Phone Number:
MORTON SALT, INC.
5930003103 Page 1 of 3 5
MORTON SALT
To confirm and accept this quote, please sign this form and return via e-mail, mail, or fax to seller within seven (7) days of
the date of this quote.
Return to:
Customer Service
Email: buvroadsaltamortonsalt.com
Fax : 630-214-0725
444 W Lake St
Chicago IL 60606
CUSTOMER ACCEPTANCE: I accept this price quote for CUSTOMER for season 2022/2023.
CUSTOMER's Signature:
Date:
*This quote is valid for acceptance by CUSTOMER within seven (7) days after the date of issuance. If this form is not
signed and returned by CUSTOMER to SELLER within seven (7) days, then the quote is null and void. This quote is not
binding on Seller until CUSTOMER's signed acceptance form is accepted and confirmed in writing by Seller.*
Customer # 3655720
All orders must be placed through myMorton at mymortonsalt.com/login
To place orders and view invoices 24/7, logon or register at mymortonsalt.com/login
For future correspondence, if your email address will be changing, please provide it below.
Email address for quote communication:
444 West Lake Street TEL 855.665.4540 MORTON SALT, INC.
Suite 3000 WEB mymortonsalt.com/login
Chicago, IL 60606-0090
5930003103 Page 2 of 3 6
MORTON SALT
STANDARD TERMS FOR COMMERCIAL BULK DEICING SALT CUSTOMERS (2022-2023 WINTER SEASON)
"SELLER" means Morton Salt, Inc. unless otherwise stated on the quote form.
"CUSTOMER" means the customer signing the price quote; and "TONS" means short tons
1. Orders based on the price quote are subject to the terms and conditions set forth herein, and no agreement or other understanding in any way modifying or supplementing these conditions shall be binding upon SELLER unless made in writing
and signed by an authorized executive of SELLER.
2. All orders are subject to product availability. SELLER reserves the right to decline any order, suspend a shipment, or terminate an existing order far any reason that affects SELLER's ability to deliver product, Including, without limitation,
conditions at production facilities or terminals of SELLER or SELLER's affiliates.
Effort will be made to ship Product as soon as possible after an order is accepted by SELLER, however SELLER shall not be responsible for any delay or failure to deliver caused wholly or in part by any cause not resulting from SELLER'S
negligence, including without limitation, fire, Flood, accident.. strike, labor trouble, civil commotion, acts of terrorism, war, demands, requests or requirements of governmental authority, failure in production equipment, product availability, Inability to obtain
fuel, power, raw materials or shipping capacity or acts of God, including snow. ice or other weather-related problems. Transportation surcharges may be applied in the event of significant cost increases in transportation beyond the reasonable control of
SELLER.
4. Rease order at least 24 hours prior to the expected delivery date. Delivered pricing quotes are based on shipments made in dump trucks carrying a minimum quantity of 22-25 tons per shipment, except for the following. in Michigan, there is
50 -ton minimum quantity (or single trailer 254on minimum); in Utah: a 40 -ton minimum for single trailer. 25 ton minimum or In -axle truck 18 -ton minimum); In Ohlo'. piler delivery -200 ton minimum; a 10 -ton minimum per truck pickup where offered and
available. Normal delivery is 1 to 5 business days.
5. Prices quoted are good for the product sourced from the stated shipping location. Any orders for product quantities exceeding Quoted Tonnage is subject to product availability and may be declined by SELLER with no liability to Customer, or
may be sourced from an alternate shipping location within SELLER's network of affiliates, and are subject to price adjustment for incremental transportation casts incurred by SELLER to fulfill such orders. SELLER reserves the right: (i) to direct Customer
pickups to an alternate shipping locations within a specific market (within fifty(50) miles of the original shipping location), depending on SELLER's Inventory availability, and )ii) charge a fee for any in -transit load that is diverted from its original destination
in order to fulfill CUSTOMER's order. For delivered pricingquotes, If fuel costs rise to a level requiring carriers to implement a fuel surcharge, SELLER reserves the right to invoice Customer for the fuel surcharge amount as an additional charge that will
be shown as a separate line item on the invoice. If implemented, the fuel surcharge amount may vary weekly, and are based on the fuel cost averages published at www.ela.doe.aov.
A. Orders must be placed via myMortan online portal whenever possible. Orders placed for pickup may not be available for 24 hours from the time the order Is placed.
7. SELLER warrants the product sold hereunder is suitable for ice control only. SELLER's liability Is limited to providing additional material, to the extent any material Is shown to be otherwise than warranted, and SELLER shall be in no event
liable otherwise or for indirect or consequential damages. THIS WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, INCLUDING BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE.
8. Any claims of quantity errors, quality issues, or damages must be made in writing to SELLER within five (5) days of delivery and must include satisfactory evidence. Customer, by acceptance of the Product assumes all risk and responsibility
mcidenl to the handling and use of said product and for the results obtained through the use of said material, and shall indemnify and hold SELLER harmless of and from any and all claims with respect thereto.
9. The price quote does not Include any sales, use or other taxes, which will be added to the price, if applicable, as a separate line item at time of invoicing. All purchases are subject to the appropriate sales tax rate, and the Customer will be
charged such tax unless Customer is exempt and has provided SELLER with the appropriate sales lax exemption certificate for Customer.
10. Payment is due net thirty (30) days, subject to SELLER's Credit Department approval. SELLER reserves the right to charge a one and a half percent (1 '/.%) per month service charge on amounts outstanding more than thirty (30) days from the
date of the invoice, effective as of the thirty-first day from the dale of Invoice. SELLER also reserves the right upon notice to CUSTOMER to condition any future shipments (Including those previously ordered or in transit) upon SELLER'S receipt of cash,
certified or cashier's check In the amount of the Invoiced price for such shipments and inclusive of all freight.
11. In the event of a product shortage, SELLER has the right to allocate available product among Its customers, including Itself.
12. This price quote and terms herein are construed and governed by the laws of the State of Illinois.
444 West Lake Street
Suite 3000
Chicago, IL 60606-0090
5930003103
TEL 855.665.4540
WEB mymortonsalt.com/login
Page 3 of 3
MORTON SALT, INC.
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