The 2018 Public Works Department budget includes $475,000 for the purchase of road salt used for Snow & Ice Control Operations.  Every year, Public Works bids salt from two separate contracts. The first one done in early spring is a single contract led by the Village. The second contract is through the State.  Public Works utilizes two contracts to spread the risk of price fluctuations and salt shortages. 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 $58.36/ton. Earlier this year, the Board approved an independent salt bid with a bid unit price of $66.06/ton.  The salt from the first contract will be purchased and stored on site, and we intend to use this 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 allows for a purchase of a minimum of 80% of our allotted 5,000 tons, up to a maximum purchase of 120%.  We are therefore seeking authorization to purchase up to 6,000 tons.

RECOMMENDATION

It is recommended that the Village Board award a contract to Cargill Inc. Salt Division of North Olmsted, Ohio for the purchase of up to 6,000 tons of Sodium Chloride (Road Salt), at a unit cost of $58.36/ton, for a total cost of $291,800 and authorize the execution of the necessary agreements.