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 2018-2019 WINTER SEASON; AND DECLARING AN EMERGENCY.
Executive Summary: 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 to purchase road salt from Cargill Incorporated through participation in the CUE (Community, University and Education Purchasing Association)
Body
Legislative History
Resolution No. 17-200 authorized staff to advertise 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.
For several reasons, Cargill Incorporated has significantly raised their bid prices this year from $48.47 to $79. 82 and is not providing guaranteed quantities or delivery dates to their customers. While Cargill pricing remains the lowest available to the City of Hudson at this time, additional suppliers were sought to remedy any shortcomings of desired quantities. At this time, the best bulk road salt price available on the open market is offered by Rock Salt USA out of Columbus at a price $134.00 per ton delivered. This resource would only be utilized in an emergency supply situation. Staff would return to City Council should this resource be required.
The attached bid tabulation shows the low bid for CUE bulk road salt pricing for the 2018-2019 winter season. The low bid is $79.82 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 requests emergency language to secure pricing and expedite orders.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends City Council authorize the City Manager to enter into a contract for road salt purchase through the CUE purchasing program with Cargill Incorporated, 24950 Country Club Blvd, Suite 450, North Olmsted, OH 44070, at the unit price of $79.82 per ton.
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato, Jr., Assistant City Manager - Operations
Eric Hutchinson, Assistant Public Works Director - Services