CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Cooperative Procurement 21-362, Roadway Salt, to Compass Minerals for an amount not to exceed $660,555
body
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 past ten years, the City has used an average of 12,500 tons of salt per year. During the 2020/21 winter season, the City used approximately 12,550 tons of salt.
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 needing 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 15,500 tons of salt currently available in the domes for the 2021/22 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 the DuPage County.
For the 2021/22 season the City only 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.
In April, the City requested 13,500 tons of salt for the 2021/22 season. Based on this request, the City must purchase a minimum of 10,800 tons and can order as much as 16,200 tons depending on need.
The price under this contract is $48.93 per ton, a 16.5% increase from the 2020/21 price of $41.98 per ton.
Over the years, DPW staff has been taking 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 began retrofitting the salt spreader control systems on all of the plow trucks. This two-year upgrade 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.
FISCAL IMPACT:
CIP #: N/A
Roadway salt is expensed to the salt and chemicals accounts listed below. The totals provided reflect the 2022 proposed budget, as the majority of this contract will occur during that period. A total of $725,000 has been budgeted for roadway salt in 2022. It is anticipated that there will be sufficient funds to accommodate the requested award.
|
Account Number |
Fund Description |
Proposed 2020 Total Budget Amount |
|
31251100-541409 |
General Fund |
$762,500 |
|
31251200-541409 |
Commuter Parking Fund |
$50,000 |