CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 23-288, Roadway Salt, to Cargill and Morton Salt Inc. for an amount not to exceed $763,560
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Department of Public Works (DPW) requires roadway salt for winter operations.
Over the years, DPW staff has taken measures to limit the use of salt due to its high cost and environmental impacts. Specifically, DPW has changed procedures for salting cul-de-sacs, lowered application rates when conditions warrant, and have postponed the application of salt on residential streets, including cul-de-sacs, until after plowing is complete in some circumstances.
Also, in 2019 DPW retrofitted the salt spreader control systems on all plow trucks. This new program allows supervisors the ability to control salt spread remotely to ensure operational consistency and adherence to best practices for environmentally-sound snow and ice removal.
These operational changes have resulted in an average salt reduction of more than 7,000 tons per year as compared to ten years ago. Over the past ten years, the City has used an average of 12,500 tons of salt per year. During the mild 2022/23 winter season, the City used approximately 6,250 tons of salt.
The City has two salt dome locations, one at the Public Works Service Center and one near Plainfield/Naperville Road. It has been the City’s policy to have both salt domes substantially full at the beginning of the winter season so that, at a minimum, it is prepared for an average-to-moderately heavy winter season. This initial salt supply not only provides the City enough salt for application during a typical winter season (based on a five-year average) but also eliminates the need to rely on delivery during the winter, which can often be delayed and more expensive.
The capacity of the City’s salt domes is 18,000 tons, and there is approximately 17,400 tons of salt currently available in the domes for the 2023/24 winter season.
DISCUSSION:
The City has several options for procuring salt. In the past, it has conducted a bid for summer delivery of salt and participated in joint purchasing programs from the State of Illinois and DuPage County. For the 2023/24 season, the City participated in the State of Illinois program as the pricing has historically been better.
The state program requires that the City request how much salt is needed for the upcoming winter season by April and purchase a minimum of 80% of the amount requested. The selected vendor is required to furnish up to 120% of the amount upon request.
The State bid requires the City to submit separate requests for each salt dome location. Vendors submit bids for each location and low bidder is determined for each location since trucking costs vary depending upon the distance traveled to deliver the salt.
In April, the City requested 9,000 tons of salt for the 2023/24 season. Based on this request, the City must purchase a minimum of 7,200 tons and can order as much as 10,900 tons depending on need.
The City will enter into state cooperative contracts for each salt dome based upon the low bidder for each location.
• Public Work Service Center: Cooperative Contract 23-416CMS-BOSS4-P-56957 through vendor Morton Salt, Inc. at a price of $69.28 per ton
• Plainfield/Naperville Road Cooperative Contract 23-416CMS-BOSS4-P-56958 through vendor Cargill, Incorporated. at a price of $74.96 per ton
It is anticipated that 8,100 tons will be needed at the Public Works Service Center and 2,700 tons will be needed at Plainfield/Naperville Road.
The term of this contract is from date of award to September 30, 2024.
FISCAL IMPACT:
CIP #: N/A
Roadway salt is expensed to the salt and chemicals accounts listed below. The totals provided reflect the 2024 proposed budget, as the majority of this contract will occur during that period. A total of $884,000 has been budgeted for roadway salt in 2024. The requested award is within the budgeted amount for this expense.
|
Account Number |
Fund Description |
Proposed 2024 Total Budget Amount |
|
31251100-541409 |
General Fund |
$915,500 |
|
31251200-541409 |
Commuter Parking Fund |
$68,000 |