TO: Mayor and City Council
FROM: Rod Tonelli, Interim City Manager
SUBJECT:
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Approve a Contract for the 2023 - 2024 Rock Salt Purchase with the State of Illinois and Cargill Inc. to Purchase Bulk Rock Salt at the average Unit Price of $75.02
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BACKGROUND:
Each year the City of Joliet enters into a Joint Purchasing Agreement to purchase rock salt on the State of Illinois Contract. In March of 2023, the City of Joliet agreed to purchase 10,000 tons of bulk rock salt as part of the State of Illinois 2023-2024 rock salt purchase. The 2024 Budget includes funding for the purchase of rock salt and liquid deicers for use on Joliet roadways during the winter season of 2023. The purchase of liquid deicer material will be addressed under a separate cover. The Public Service Committee reviewed this memo at the November 6, 2023 meeting and recommended for approval by full Council.
CONCLUSION:
The low bids on the State of Illinois Joint Purchasing Program for bulk road salt delivered is slightly different for each facility.
Cedarwood Cargill Inc. 4500 Tons $75.30 $338,850
Cass Steet Cargill Inc. 3500 Tons $74.75 $261,625
Arbeiter Cargill Inc. 2000 Tons $74.86____ $149,720
10,000 Tons $75.02 (Avg) $750,195
It is estimated that the winter season of 2023-2024 will require the purchase of 10,000 tons of bulk rock salt at a total cost of $750,195. The City of Joliet is responsible to purchase a minimum of 8,000 tons of rock salt and can purchase a maximum of 12,000 tons of rock salt. This purchasing price agreement is in force from October 2023 until September 2024.
The City of Joliet Budget allocates funding based on a calendar year and thus, appropriates an estimate of funding for any purchases made in the fall of each winter season. Funding in the amount of $750,195 has been requested for the 2024 season in the 2024 Budget.
Funds will be charged to the General Fund PW Roadways / Supplies - Chemicals (Org 09029000, Object 536108, $750,195.00). Additional funding requests will be made to purchase liquid de-icing chemicals in the future.
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council approve entering into the Joint Purchasing Agreement with the State of Illinois and Cargill, Inc. to purchase bulk rock salt at an average unit price of $75.02 per ton.
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