Title
2015-2016 Road Salt Annual Purchase
History
In March, the Public Works Department received Board approval to re-enter an agreement with the Illinois Department of Central Management Services (CMS) for our annual purchase of road salt (4,500 tons) through the State’s Joint Purchasing Program. Since that time, CMS has completed the bid process and we have been advised that our per-ton salt price will be $59.71; an approximate 10% cost increase over last season ($53.84/ton in 2014/15). Our new supplier will be Morton Salt Incorporated, of Chicago IL. Taking advantage of the last year’s contract price, the Village purchased the maximum allotment of road salt (120%) totaling 6,600 tons plus an additional 1,000 tons. Public Works was able to fill our salt barn for the upcoming 2015-2016 winter season. This year, due to our remaining on-site salt inventory (5,500 tons +/-), the Village will be able to purchase less road salt for the start of the 2015/16 winter season, to a maximum of 5,400 tons.
On September 8, 2015, this item was reviewed and approved by the Public Works Committee and referred to the Board for approval.
Financial Impact
The FY16 Budget has sufficient funds in line item 010-5002-462600 for the purchase of up to 5,400 tons of salt.
Recommended Action/Motion
I move to approve the purchase of road salt from Morton Salt, Chicago, IL, for the 2015-2016 winter season, for a cost not to exceed $59.71 per ton, and a total cost not to exceed the Board approved budgeted amount.