Council action is requested to issue a contract with Central Salt, LLC for Salt for one year, with two possible one-year renewal periods for the Municipal Services Department.

Council approval to issue a contract.

The Municipal Services Department/Street Maintenance Division annually purchases salt for application to roadways during inclement weather in the winter months. Street Maintenance needs a supplier who must stockpile product at a quoted delivered price. The supplier must also deliver the product within a specified period of time after receipt of a requested order.

The Procurement Division issued Invitation to Bid (ITB) #22095 on October 21, 2022 for Salt. The ITB was published through the Public Purchase e-procurement website, which notified (73) potential bidders; (11) accessed the RFP. The invitation to bid was issued with an estimate of 3,000 tons to be ordered annually. In the past the contract was for an estimate of 2,000 tons annually and when the City attempted to order more 2,000 tons the supplier would deny the overage. Issuing the bid at 3,000 tons will enable the City to get an adequate supply of salt should there be an extreme need for coming seasons.

The ITB closed on November 4, 2022. One (1) bid was received through Central Salt, LLC. Morton Salt, Inc, Compass Minerals America Inc and Cargill Inc submitted responses that they were unable to submit a bid at this time but wished to remain eligible for consideration in the future. Central Salt, LLC is an established salt provider who should be able to accommodate the requests for salt from the Street Maintenance Division.

The funds for this commodity will be coming out of street sales tax funds. An amount of $675,000 is allocated for this commodity for all three years of this contract.

The fiscal impact to the City is $675,000. Street Sales Tax funding for this commodity is $225,000 annually. Funding is associated with account code 5112-5309.