CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 22-340, Roadway Salt, to Cargill and Morton Salt Inc for an amount not to exceed $850,980
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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 2021/22 winter season, the City used approximately 9,300 tons of salt.
The City has two salt dome locations, one at the Public Works Service Center and one off of Plainfield/Naperville Road and 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 17,300 tons of salt currently available in the domes for the 2022/23 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 2022/23 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 12,000 tons of salt for the 2022/23 season. Based on this request, the City must purchase a minimum of 9,600 tons and can order as much as 14,400 tons depending on need.
The price under this contract is $68.63 per ton for Morton Salt Inc delivery to the Public Works Service Center, and $77.77 per ton for Cargill delivery to the salt dome on Plainfield/Naperville Road. It is anticipated that 9,000 tons will be needed at the Public Works Service Center and 3,000 tons will be needed at Plainfield/Naperville Road.
FISCAL IMPACT:
CIP #: N/A
Roadway salt is expensed to the salt and chemicals accounts listed below. The totals provided reflect the 2023 proposed budget, as the majority of this contract will occur during that period. A total of $895,190 has been budgeted for roadway salt in 2023. It is anticipated that there will be sufficient funds to accommodate the requested award.
|
Account Number |
Fund Description |
Proposed 2023 Total Budget Amount |
|
31251100-541409 |
General Fund |
$823,560 |
|
31251200-541409 |
Commuter Parking Fund |
$68,630 |