BACKGROUND  

The FY15 Public Works operating budget includes $500,300 for the purchase of road salt for snow and ice control operations. The Village recently received our 2014-2015 sodium chloride (road salt) purchase confirmation letter from the State’s Department of Control Management Services (CMS). CMS conducts this statewide salt bid for all municipalities to participate in.  The Village received a bid from Morton Salt at a cost of $77.06/ton. The Department’s goal is to have 8,000 tons under contract for the season.  In an effort to spread the Village’s risk, Public Works bid out two separate salt contracts.  On 7/7/14, the Village Board awarded a contract to North American Salt for 3,600 tons at a unit cost of $74.52/ton or a total cost of $268,272.  This contract also gives us an option to purchase an additional 1,000 tons at the bid price.  The State contract allows for a purchase of a minimum of 80% of our allotted 4,000 tons up to a maximum purchase of 120%.  Since the Village received a lower per ton cost on our own, Staff recommends entering into a contract for the minimum order with CMS of 3,200 tons at a cost of $246,592. Last year's salt price was $53.38 per ton. The increase in cost can be associated with supply and demand due to last year’s harsh winter. 

RECOMMENDATION

It is recommended that the Village Board award a contract to Morton Salt Co., Inc. of Chicago, IL for the purchase of 3,200 tons of road salt at a unit cost of $77.06 per ton for a total cost of $246,592 and authorize the execution of the necessary agreements. The bidder has been determined to be responsible and has worked successfully with the Village in the past.