Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT FOR THE PURCHASE OF ROAD SALT FROM CARGILL INC. THROUGH THE COMMUNITY UNIVERSITY AND EDUCATION PURCHASING ASSOCIATION PROGRAM FOR THE 2020-2021 WINTER SEASON.
Brief Description: The Public Works Department budgets annually for the purchase of road salt for de-icing city streets for winter traffic safety. The Public Works Department seeks City Council approval of road salt purchases from Cargill Incorporated through participation in the CUE (Community, University and Education Purchasing Association).
Body
Legislative History
Resolution No. 19-185 authorized staff to seek pricing for goods and services including road salt purchases.
Purpose & Explanation
Rather than bid on an annual basis for road salt, the City of Hudson has historically taken advantage of the Community, University and Education (C.U.E.) cooperative purchase program for the procurement of road salt. The last several years, the low bidder in the cooperative purchase has been Cargill Incorporated. By participating in the CUE purchasing program the City has realized a cost savings for the purchase of bulk road salt.
Cargill Incorporated has held pricing from last year at $71.89 per delivered ton. The road salt market has been quite volatile in recent years and demand has exceeded supply. With additional storage space available within our salt domes, staff hopes to have a plentiful supply on hand and not be subject to pricing spikes or road salt quantity shortages.
The attached bid tabulation shows the low bid for CUE bulk road salt pricing for the 2020-2021 winter season. The low bid is $71.89 per ton for delivered bulk road salt with Cargill Incorporated. We expect our winter season road salt use to be approximately 9,000 tons.
Timing Considerations
Staff has salt on hand to begin the winter season. The first purchase under this contract will most likely occur after 1/1/21.
Fiscal Impact
X Currently Budgeted (Account # 201-6240-52463)
Supplemental Appropriation Required
Appropriation Not Required
Does this legislation require use of an emergency clause?
Yes
X No
Recommendation
Suggested Action
Staff recommends City Council authorize the City Manager to enter into a contract for road salt through the CUE purchasing program with Cargill Incorporated, 24950 Country Club Blvd, Suite 450, North Olmsted, OH 44070, at the unit price of $71.89 per ton delivered for the 2020-2021 winter season.
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato, Jr., Assistant City Manager - Operations
Eric Hutchinson, Assistant Public Works Director - Services