The 2020 Public Works Department Operating Budget includes $425,000 for the purchase of road salt used for Snow & Ice Control Operations.  Every year, Public Works typically bids salt from two separate contracts. The first contract is let in early spring as a single contract led by the Village. The second contract is through the State. Due to the light season last year, we started the season with a full salt dome and did not pursue the first bid. The Village recently received our sodium chloride purchase confirmation letter from the State's Department of Central Management Services (CMS). CMS conducts the Statewide Salt Bid for all municipalities to participate in. The Village received a confirmation price from Cargill Inc. Salt Division of North Olmsted, OH at a cost of $47.15/ton. We intend to use the CMS contract to meet our needs during the season, and to re-stock at the end if necessary. The bidder has been determined to be responsible and has worked successfully with the Village in the past.

The State contract is valid from October 2020 to June 2021, and allows for a purchase of a minimum of 80% of our allotted 6,500 tons, up to a maximum purchase of 120%.  We are therefore seeking authorization to purchase up to 7,800 tons. 

Funds for this purchase are included in the 2020 budget and are available in Account No. 101-7101-531.31-90 for calendar year 2020 and 2021.

RECOMMENDATION

It is recommended that the Village Board award a contract for 2020 to Cargill Inc. Salt Division of North Olmsted, Ohio for the purchase of Sodium Chloride (Road Salt), at a unit cost of $47.15/ton, up to the budgeted amount, and authorize the execution of the necessary agreements.