AGENDA MEMO

City Council

May 2, 2011

ISSUE STATEMENT

Approval of a resolution for the authorization to accept a proposal for the purchase of rock salt from North American Salt Company in an amount not to exceed $199,800.00.

RESOLUTION

BACKGROUND/HISTORY

The City of Darien has utilized the services of the Illinois Department of Transportation Central Management Services for Road Salt prior to this year. The rock salt is utilized by the Municipal Services Department for street de-icing operations during the snow season. Meanwhile, the department is in the process of completing the salt storage building which will allow us to store our total annual supply. This opportunity to purchase salt in a bulk quantity allowed the City to seek competitive pricing by taking advantage of summer salt pricing.

Attached and labeled as Attachment A, please find the prices received at the bid opening held on March 16, 2011. Staff received 3 bids with the lowest bidder being North American Salt Company. The 2011-12 per ton unit pricing is $66.60, for a total quantity to be utilized in the amount of 2,750 tons for an amount of $183,150.00. In addition, the Darien Park District and Center Cass School District #66 will be purchasing up to 245 and 5 tons respectively of rock salt not to exceed $16,650.00. A forthcoming agenda memo will cover the Intergovernmental Agreements between the City and the Darien Park District and Center Cass School District #66. This is the first year that the City has secured a salt contract on our own and has realized a cost savings of 11% or $8.22 in comparison to the $74.82 per ton unit price from last years state joint contract.

The proposed expenditure would be expended from the following account:

ACCOUNT NUMBER	ACCOUNT DESCRIPTION	FY 11-12 BUDGET	PROPOSED EXPENDITURE	PROPOSED BALANCE
03-60-4249	SALT	$235,500.00	$183,150.00	$52,350.00
03-60-4249	DARIEN PARK DISTRICT-REIMBURSABLE	N/A	$ 16,317.00	N/A
03-60-4249	DISTRICT 66-REIMBURSABLE	N/A	$ 333.00	N/A
TOTAL COST			$ 199,800.00

COMMITTEE RECOMMENDATION

The Municipal Services Committee recommends approval of this resolution with North American Salt Company for the annual purchase of Rock Salt in an amount not to exceed $199,800.00.

ALTERNATE CONSIDERATION

Not approving the contract.

DECISION MODE

This item will be placed on the May 2, 2011 City Council agenda for formal approval.