BACKGROUND

On July 7, 2014, the Village Board awarded a bid for the purchase of supplemental road salt to North American Salt Company for 3,600 tons at $74.52/ton for a not to exceed cost of $268,272.00. The additional salt supply was intended to spread our risk and allow the Village to work with a second vendor in addition to the States's Central Management Services (CMS) Office. Our awarded price for salt through CMS is $77.06/ton. 

Included in the contract with North American is an option to purchase an additional 1,000 tons at the awarded unit price. Staff has been in contact with representatives from North American and they are willing to extend this unit price for an additional 1,800 tons. The purchase of this 1,800 tons will allow us to fill our salt dome at the lowest price presently available to us and will help the Village prepare for next winter.

The Public Works Street and Sidewalk Account has sufficient funds at this point in the fiscal year to cover this purchase which totals $134,136. 

RECOMMENDATION

It is recommended that the Village Board authorize the purchase of an additional 1,800 tons of salt from North American Salt Company of Overland Park, Kansas at a unit cost of $74.52/ton for a total not to exceed amount of $134,136.