HomeMy WebLinkAbout08/11/2026 Waive the rules requiring public bidding and retroactively approve an informal vote of the Village Board to accept the proposal from Midwest Salt for the procurement and delivery of 5,000 tons of road salt for a cost not to exceed $562,95Item Cover Page
Subject A request to waive the rules requiring public bidding and
retroactively approve an informal vote of the Village Board to
accept the proposal from Midwest Salt for the procurement and
delivery of 5,000 tons of road salt for a cost not to exceed
$562,r95O.
Meeting August 11, 2026 - SPECIAL MEETING OF THE MOUNT PROSPECT
VILLAGE BOARD
Fiscal Impact (Y/N)
Dollar Amount
Budget Source
Category
Type
Information
Y
$562,950
General Fund
CONSENT AGENDA
Action Item
The Village of Mount Prospect, along with 260 other Illinois communities and road agencies
(including some IDOT and Tollway yards), received no bids in this year's state bid for road
salt. The Illinois Department of Central Management Services (IDCMS), the state agency that
runs the bid, has not yet offered an explanation of the unusual lack of interest in the bid.
There are verbal reports that IDCMS may issue an emergency supplementary bid and there
are discussions that some communities may organize joint bids.
Staff has no knowledge of the matter but surmises that there could be a problem with the
state contract (some term or condition that vendors do not like), a problem with the adequacy
of regional stockpiles, or trucking problems. The Illinois Department of Central Management
Services is, heretofore unexpectedly, forecasting a salt shortage this winter.
Public Works staff has reached out to the major salt suppliers (Cargill, Compass, and Morton)
to find out if they will provide us with salt under a separate contract. Cargill is not providing
salt to any Illinois municipalities this year. Compass and Morton both report that they do not
have any salt on hand to commit to additional contracts. This circumstance creates the biggest
problem for the success of a supplemental state bid or ad hoc joint purchasing bids. That is,
there isn't enough salt in the area, leaving only vendors with small inventories able to fill
orders. Consequently, relying on a supplemental state bid or a large joint purchasing bid is
risky. And the closer we get to winter, the scarcer salt becomes.
Also, it appears that unit prices for communities that did receive bids through the Central
Management Services contract are exceptionally high -ranging from $110 - $140 per ton;
essentially doubling the price paid last year. Anecdotally, a similar joint purchasing bid
conducted by Lake County (IL) and opened in April of this year featured prices from
$94.64/ton to $129.00/ton. Last year, the Village paid $68-35/ton on the IDCMS state bid.
Since there are many municipalities in a road salt predicament this year, staff believes that we
will have to move quickly and innovatively to secure road salt for the coming winter.
To this end, attached is a proposal to provide 5,000 tons of road salt at $112.59/ton from
Midwest Salt (Midwest). Staff has never procured salt from Midwest before, and Midwest has
never participated in the State of Illinois joint bid. However, discussions with the firm indicate
that they hold approximately 60,000 tons of road salt locally.
Staff recommends waiving the rules requiring public bidding and accepting this proposal.
Presently, the salt dome at Public Works has about 4,000 tons of salt (it can hold between
5,000 and 6,000 tons). Staff proposes bulk purchasing all 5,000 tons and accepting delivery at
Public Works before the start of winter. Approximately 2,000 tons of the salt order will fit in
the dome, an additional 1,200 tons in the old salt bins, and the remaining amount will have to
be covered by a tarp and stored in a temporary pile. Staff believes possession of the salt will
be critical this winter due to the apparent shortage of regional stockpiles. In addition, upfront
delivery eliminates delivery problems possible with a new vendor. 9,000 tons of salt on site
should last the entire 2026/2027 winter season with no need for additional salt deliveries.
Therefore, staff requests that the Village Board waive the rules requiring public bidding and
retroactively approve an informal vote of the Village Board, held on July 31st and August 1st,
to accept the proposal from Midwest Salt for the procurement and delivery of 5,000 tons of
road salt for a cost not to exceed $562,950.
Discussion
Alternatives
1. Accept the proposal from Midwest Salt for 5,000 tons of road salt.
2. Action at the discretion of the Village Board.
Staff Recommendation
Staff recommends that the Village Board waive the rules requiring public bidding and
retroactively approve an informal vote of the Village Board, held on July 31st and August 1st,
to accept the proposal from Midwest Salt for the procurement and delivery of 5,000 tons of
road salt for a cost not to exceed $562,950.
Attachments
1. Salt Purchase Agreement Fully Executed
BULK SALT SALES AGREEMENT
This Bulk Road Salt Sales Agreement (the "Agreement") is entered into as of the date of last
signature below (the "Effective Date") between Midwest Salt, LLC ("Seller") and Village of Mount
Prospect ("Buyer"). Seller and Buyer are each a "Party" and together the "Parties".
Buyer Information
Entity Name: Village of Mount Prospect
Ship -To Address: 1700 W. Central Road, Mt. Prospect, IL
Offer / Agreement Valid Throughn, August 12, 2026
1. Product, Pricing, Quantity
1.1. The price, product and quantities are as follows:
Product: Bulk Rock Salt - Untreated
Pre -Season Quantity: 5,000 tons
Pre -Season Price: $112.5 91to n delivered
In -Season Quantity: 0 tons
In -Season Price: $112.5 91to n delivered
1.2. Quantity Commitment. Buyer commits to purchase, and Seller commits to provide,
one hundred percent (100%) of the combined total tonnage of the Preseason Quantity
and In -Season Quantity (together, the "Total Quantity") regardless of the proportion
actually delivered under each category, at the rates set forth in Section 1.1 and Section
1.3.
1.3. Preseason Rate Conversion. Any Preseason tons not delivered to or picked up by
Buyer by September 30, 2026, shall automatically convert to, and be priced and
delivered at, the In -Season rate set forth in Section 1.1. This conversion does not
reduce, excuse, or otherwise affect Buyer's Total Quantity commitment under Section
1.2.
1.4. Order Classification. Preseason orders are those placed by Buyer and confirmed in
writing by Seller on or before September 30, 2026, up to the Preseason Quantity listed
in Section 1.1. Orders placed after that date, or in excess of the Preseason Quantity, are
In -Season orders and priced accordingly. Orders that would cause cumulative
Preseason orders to exceed the Preseason Quantity shall be classified as In -Season
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only as to the excess tonnage; tonnage within the Preseason Quantity cap remains
classified as Preseason.
1.5. Sales Tax: The prices set forth above do not include applicable sales tax. Sales tax
shall be added to and stated separately on each invoice unless Buyer provides Seller
with valid tax -exemption documentation prior to Buyer's first order under this
Agreement.
2. Payment Terms
2.1. Buyer shall pay all invoiced amounts in accordance with the payment terms set forth in
Buyer's existing credit or account agreement with Seller, if any, as in effect on the date
of the applicable invoice (the "Account Terms"). Any extension, continuation, or
termination of credit availability to Buyer is at Seller's sole discretion at all times, and
nothing in this Agreement shall be construed to establish, guarantee, or limit Seller's
discretion with respect to Buyer's credit terms or availability.
2.2. Credit Hold. If Buyer has any invoice past due, or credit is limited, suspended, or
terminated by Seller, or Buyer is otherwise in breach of these payment terms, Seller
shall have no obligation to accept, confirm, process, or fulfill any further orders under
this Agreement until Buyer's account is brought current or Seller reinstates credit
availability. Seller's exercise of this right shall not {i) excuse, reduce, or extend Buyer's
minimum purchase commitment or any deadline under this Agreement, {ii) be deemed a
breach of Seller's delivery obligations hereunder, or (iii} constitute a waiver of any of
Seller's other rights or remedies under this Agreement or applicable law.
3. Minimum Quantity Shortfall
3.1. If Buyer's total deliveries as of March 31, 2027, are less than one hundred percent
(100%) of the Total Quantity, Buyer shall fulfill the remaining commitment through one of
the following options:
3.1.1. Late Delivery. Buyer picks up or takes delivery of the shortfall tons by April 15,
2027, at the In -Season rate listed in Section 1; or
3.1.2. Storage Fee. Buyer pays Seller a storage fee of $8.00 per ton on the shortfall
tons not picked up or delivered by March 31, 2027. Seller will invoice Buyer for the
Storage Fee of the shortfall tons.
3.2. Any shortfall quantity not removed by April 15, 2027, will automatically be billed the
Storage Fee in Section 3.1.2.
4. Carryforward Tons
4.1. Any shortfall tons not delivered to or picked up by Buyer by April 15, 2027
("Carryforward Tons") are automatically applied first to Buyer's orders the following
season, at the In -Season rate then in effect under this Agreement, before any tons are
priced at that season's new rate. If Carryforward Tons still aren't fully delivered by the
following season's end, they roll forward again, under this same rule until 24 months
from April 15, 2027, after which they're forfeited with no refund. Notwithstanding the
foregoing, for any Carryforward Tons not delivered, picked up, or incorporated into a
new agreement under Section 4.2 by September 1, 2027, Seller shall have sole
discretion, either to continue honoring the rate and terms of this Agreement as to those
tons (subject in all cases to the 24-month limit above), or to deem them forfeited with no
refund.
4.2. Upon execution of a new agreement between the parties for a subsequent season, any
outstanding Carryforward Tons and their applicable rate shall be incorporated into that
new agreement as a priced line item, and this Agreement shall thereupon terminate and
be superseded in full subject to Section 11 (Term, Expiration, and Survival).
5. Warranty. This product shall comply with the specifications provided to Buyer by Seller.
SELLER MAKES NO OTHER WARRANTY OF ANY KIND WHATEVER, EXPRESS OR
IMPLIED; AND ALL IMPLIED WARRANTY OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE ARE HEREBY EXPRESSLY DISCLAIMED BY SELLER AND
EXCLUDED FROM THE AGREEMENT
6. Inspection, Demurrage, and Detention
6.1. Buyer may inspect the product prior to delivery; however, upon delivery Buyer
acknowledges that the product delivered is in all respects accepted. Should Buyer reject
the product at the time of inspection, Buyer shall provide Seller with a written notice of
rejection via email or personal delivery to the Seller representative listed above, which
notice shall apply only to the load inspected and which notice shall specify the reasons
for the rejection. The parties agree that rejection of a load does not affect the remaining
tonnage subject to this Agreement.
6.2. Buyer shall unload and release all transportation vehicles and equipment promptly so
that no demurrage, detention, or other expenses resulting from delay shall be incurred;
however, if any claims or demurrage charges are incurred by reason of any action or
inaction by Buyer, then Buyer shall promptly reimburse Seller for such damages.
7. Excused Performance; Force Majeure
7.1. All orders are subject to Seller's ability to make delivery at the time and in the quantities
specified herein. Seller shall be excused from performance for any and all causes
beyond its reasonable control that impedes its ability to perform under this contract,
including but not limited to, any act of god, explosion, accidents, riots, pandemics,
floods, labor disputes, or any other event that made performance impossible or
impractical under the circumstances. If Seller is unable to deliver a specific order in full
within 45 days of Seller's confirmation of receipt of that order, Buyer may, at its option,
cancel that order. Notice of cancellation shall be in writing to the Seller representative
listed above. Any refunds due shall be paid within seven (7) business days of notice
from Buyer of such cancellation.
7.2. In the event Seller is unable for any reason to supply the total requirements of its
customers, Seller may allocate its available supply of the product among its customers
in a manner of its choosing.
8. Indemnification. Buyer shall indemnify, hold harmless, and defend Seller, its employees
and agents, from any and all claims and expenses, including its reasonable attorneys' fees,
arising out of any claims by any third parties, including but not limited to, claims by Buyer's
employees and agents, excepting only claims for intentional misconduct by Seller.
9. Limits of Liability. In no event shall Seller be liable to Buyer or any third party for any
indirect, consequential, incidental, special or exemplary damages. Buyer's actual damages
are limited to the amounts actually paid to Seller under this Agreement, regardless of the
basis for any such claims for damages.
10. Dispute Resolution. Any controversy or claim arising out of or relating to this contract, or
the breach thereof, shall be settled by arbitration administered by the American Arbitration
Association in accordance with its Commercial Arbitration Rules and judgment on the award
rendered by the arbitrator may be entered in any court having jurisdiction thereof. Any claims
under $75,000 shall proceed under the AAA Expedited Procedure rules. All claims shall be
heard by a single arbitrator, selected pursuant to a list of arbitrators published by the AAA,
which shall include as many former judges of the Circuit Court of Cook County, Illinois as are
then available. The place of arbitration shall be Chicago, Illinois. The arbitration shall be
governed by the laws of the State of Illinois. Each party will, upon written request of the other
party, promptly provide the other with copies of all relevant documents. There shall be no
other discovery allowed. Time is of the essence for any arbitration under this agreement and
arbitration hearings shall take place within 90 days of filing and awards rendered within 120
days. The arbitrator shall agree to these limits prior to accepting appointment. The arbitrator
will have no authority to award punitive or other damages not measured by the prevailing
party's actual damages limited by the amounts of any payments previously made by Buyer
to Seller under this agreement. The arbitrator may determine how the costs and expenses of
the arbitration shall be allocated between the parties; however reasonable attorneys' fees
shall be awarded to the prevailing party. Except as may be required by law, neither a party
nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder
without the prior written consent of both parties.
11. Term, Expiration, and Survival
11.1. Term. This Agreement commences on the Effective Date and continues through
March 31, 2027 (the "Initial Term"), unless earlier terminated as provided herein. Buyer's
right to place new orders for the Total Quantity expires at the end of the Initial Term.
This Agreement does not automatically renew; any subsequent season's pricing and
quantities shall be governed by a new agreement between the Parties.
11.2. Survival. Notwithstanding expiration or termination of this Agreement for any reason,
including under Section 4.2, the following continue in full force until fully satisfied: (i)
Buyer's obligations regarding any unpaid invoices; (ii) Sections 3 and 4 (Minimum
Quantity Shortfall; Carryforward Tons), with respect to any tons outstanding as of the
end of the Initial Term; and (iii) Sections 5 (Warranty), 8 (indemnification), 9 (Limits of
Liability), and 10 (Dispute Resolution), with respect to any claim arising from conduct,
deliveries, or obligations occurring during the Initial Term or any period of survival under
this Section.
11.3. Final Expiration. This Agreement terminates in its entirety upon the earliest of: (i)
delivery of all Total Quantity tons and all Carryforward Tons in full; (ii) forfeiture of all
outstanding Carryforward Tons under Section 4.1; or (iii) 24 months from April 15, 2027.
Termination under this Section does not relieve either Party of any obligation accrued, or
liability arising from conduct occurring, before termination.
12. Miscellaneous
12.1. Entire Agreement. The Agreement constitutes the entire agreement between the
Parties and supersedes all prior or contemporaneous communications, representations,
or agreements.
12.2. Amendments. No amendment, modification, or waiver shall be effective unless in
writing and signed by both Parties.
12.3. Assignment. Neither Party may assign this Agreement without the prior written
consent of the other Party, except that Seller may assign to an affiliate or in connection
with a sale of all or substantially all of its business.
12.4. Counterparts. The Agreement may be executed in counterparts, each of which is
deemed an original, but all of which together are deemed to be one and the same
agreement. Notwithstanding anything to the contrary herein, a signed copy of the
Agreement delivered by facsimile, email, or other means of electronic transmission is
deemed to have the same legal effect as delivery of an original signed copy of this
Agreement.
[Remainder of page intentionally left blank]
Contacts
For orders and all general customer service questions, please contact
customerservice@midwestsaIt.net. For questions specific to this contract, please contact
Jason Kane at jason.kane@midwestsalt.net.
Signatures
qWUM
Business: Village of Mount Prospect
Contact:5. e�-c@ "C- 4' 4
Michael Cassrxd)
Signature:
k
'=777
Date of Contract:
SELLER
Business: Midwest Salt, LLC
Contact: Jason Kane
Signat
Date of Contract:
8/3/26
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