Title
2017-2018 Road Salt Annual Purchase
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. In March, 2017 the Public Works Department received Board approval to re-enter an agreement with CMS to bid the purchase of 4,000 tons of road salt. Since that time CMS has completed the bid process and we have been advised that our per-ton salt price will be $43.41; an approximate 27% cost reduction over last season ($59.71/ton in 2016/17). Our new supplier will be Minerals America Inc. of Overland Park, Kansas.
The Village’s salt barn is currently at capacity (4,000 tons) to handle the beginning of the 2017-2018 snow season. Per the CMS agreement, the Village is required to purchase a minimum of 80% of this request (3,200 tons). The Village also has the ability to purchase up to 120% of this request (4,800 tons).
On November 6, 2017, this item was reviewed by the Public Works Committee and recommended for approval and referral to the Village Board of Trustees for consideration.
Financial Impact
The FY16 Budget has sufficient funds in line item 010-5002-462600 for this purchase
Recommended Action/Motion
I move to approve accepting the purchase of road salt from Minerals America Inc. of Overland Park, Kansas for the 2017-2018 winter season, at a cost of $43.41 per ton, and a total cost not to exceed the Board approved budgeted amount.