Title
2018 - 2019 Road Salt Joint Purchasing Requisition - Renewal
History
For a number of years, the Village of Orland Park has participated in the State Joint Purchasing Program of the Illinois Department of Central Management Services (CMS) in an effort to secure the best price for road salt. At this time of the year, the State of Illinois requires renewal of the option to participate in this program for next winter’s road salt (2018-2019) allocation. In doing so staff must complete and submit the Illinois Joint Purchasing Requisition indicating both the tonnage and amount anticipated to be budgeted for our 2018-2019 road salt requirements. CMS competitively bid staff’s salt request last year, with this year being an optional one time renewal. Being the second year of the contract, the vendor, Compass Minerals America is limited to a maximum of 10% price increase.
The salt allocation request for the previous 2017-2018 season was 4,000 tons. The Village of Orland Park’s salt price is currently $43.41 per ton. This salt purchase price expires in September of 2018, with the new price becoming effective at the beginning of October 2018. The Village’s salt barn is currently well stocked and will be near capacity to begin the 2018-2019 snow season; therefore, it is staff’s recommendation to minimally increase this year’s allocation request to 4,200 tons. Per the CMS agreement, the Village is required to purchase a minimum of 80% of this request (3,360 tons). The Village also has the ability to purchase up to 120% of this request (5,040 tons). Upon receipt of the updated pricing, staff will return to Committee and Board for approval of the vendor price and funding required for the 2018-2019 salt purchase.
The Illinois Department of Central Management Services annually sends their Joint Purchasing Requisition close to the required submission date providing a very short timeline for response and necessitating prompt actions in order to meet this deadline. The renewal agreement is required to be executed by April 1, 2018. To ensure that the Village is able to participate in the CMS process, this agenda item is being considered by the Public Works Committee and the Village Board of Trustees on the same night, March 19, 2018.
Financial Impact
Funding for road salt is included in the annual budget process and is available in FY18 (and FY19) in account 010-5002-462600.
Recommended Action/Motion
I move to approve authorizing the Village Manager to renew and execute the Illinois Joint Purchasing Requisition with the Illinois Department of Central Management Services for road salt for the 2018-2019 snow season.