HomeMy WebLinkAbout10/07/2014 Road Salt Contract- State Bid Acceptance 2014/2015Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO: VILLAGE MANAGER, MICHAEL E. JANONIS
FROM: SUPERINTENDENT OF STREETS & BUILDINGS
DATE: SEPTEMBER 30, 2014
SUBJECT: 2014/2015 ROAD SALT CONTRACT — STATE BID ACCEPTANCE ($409,266)
BACKGROUND
The public works department utilizes road salt for street de-icing operations during the snow season. The
department typically utilizes approximately 4,500 tons of a salt during a winter season. We routinely
purchase road salt for our winter snow and ice control efforts 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.
As previously stated, salt usage during a snow season has averaged 4,500 tons. The 2013/2014 snow
season proved to be an exception. The village purchased the maximum amount of salt allowed by
contract, which was 5,400 tons and purchased an additional 600 tons outside of the state contract. The
village's total salt usage in 2013/2014 was 6,000 tons which represented the most salt ever utilized by the
village in snow fighting efforts.
Over the last five winter seasons the village has received favorable pricing through the State contract with
an average price per ton of $56.53. The highest price in the last five years was $60.41 during the
2011/2012 winter season. The lowest price paid for salt in the last five years $52.74 during the winter
seasons of 2012/2013 and 2013/2014. Listed below is the cost per ton of salt and tons purchased over
the last five winter seasons.
Snow Season
Supplier
Cost/Ton
Tons Purchased
Total Expended
2009/2010
Morton Salt
$58.37
4,364
$254,726.68
2010/2011
Morton Salt
$58.37
5,532
$322,929.10
2011/2012
Morton Salt
$60.41
4,299
$259,702.59
2012/2013
Morton Salt
1$52.74
2,765
$145,826.10
2013/2014
Morton Salt
1$52.74
5,426
$286,325.46
BID RESULTS
The State of Illinois opened bids for road salt on July 1, 2014. The village was notified on August 15,
2014 that the State did receive a responsive bid to provide road salt to the village for the 2014/2015 snow
season. The successful bidder was Morton Salt, Inc. of Chicago, IL with a bid of $75.79 per ton.
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2014/2015 Road Salt Contract — State Bid Acceptance ($409,266)
September 30, 2014
DISCUSSION
The 2013/2014 snow season was one of the worst winters on record for the Chicago metropolitan area.
Specifically the Village experienced the third snowiest winter season since the advent of modern
meteorological records has been recorded. The severity of last winter depleted regional salt stores
potentially causing a short supply for the 2014/2015 snow season.
The State of Illinois let a bid for road salt on behalf of 562 Illinois government bodies with 367 receiving
bids and 195 communities not receiving a bid. Prices received ranged from a low of $70 a ton to over
$140 a ton. The village received a bid from Morton Salt for $75.79 representing one of the lowest costs
on the state bid. Neighboring communities also experienced a significant increase in pricing with prices
ranging from $77.06 in Arlington Heights to $109.94 in Park Ridge. The bid received represents a 44%
increase over last winter's price of $52.74 per ton. The region faced a similar salt shortage in 2008/2009
in which the village experienced a 41% increase in prices from $45.81 in 2007/2008 to $64.42 the
following season. It should be noted that communities that do not participate in the state bid have seen
significant increases in salt pricing. The Village of Schaumburg recently opened a bid for bulk road salt
and received a price of $93.00 per ton.
The bid received was for a total of 4,500 tons of salt with the contract requiring the Village to purchase a
minimum of 80% of the bid quantity (3,600 tons); however, the contract allows for the village to purchase
a maximum of 120% of the contract quantity (5,400 tons). Currently the Village has approximately 1,200
tons of salt in storage, which in conjunction with the state contract would give the village access to 6,600
tons of salt for the 2014/2015 snow season. Initial winter weather predictions foresee above average
snow amounts and below average temperatures.
Morton Salt has provided road salt to the village the last five (5) winter seasons and has met the
contractual requirements.
RECOMMENDATION
Staff recommends that the village accept the State of Illinois Joint Purchasing Contract unit price of
$75.79 per ton for bulk road and enter into a contract with Morton Salt, Inc. of Chicago, IL. Salt purchases
will not exceed $409,266 without further Village Board approval.
With your concurrence, please forward this to the Village Board for their approval
Director of Public Works
pb/PB
cc: Director of Public Works Sean P. Dorsey
Deputy Director of Public Works Jason Leib
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Paul Bures
Superintendent of Streets & Buildings