CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Cooperative Procurement 20-370, Rock Salt, to Cargill Inc. for an amount not to exceed $604,512
body
DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Department of Public Works (DPW) uses roadway salt for winter operations to maintain safe roadways. Over the past ten years, the City has used an average of 14,000 tons of salt per year. During the mild 2019-20 winter season, the City used approximately 9,000 tons of salt.
The City's total salt dome capacity is 18,000 tons, and there is approximately 15,000 tons of salt currently available in the domes for the 2020-21 winter season. It is the City's policy to have both salt domes substantially full at the beginning of the winter season so that, at minimum, it is prepared for an average to moderately heavy winter season. This initial supply not only provides the City enough salt for application during a typical winter season but also eliminates the reliance on winter delivery which can often be delayed and more expensive.
The chart below shows the pricing received over the past ten years through the State of Illinois Joint Purchasing program.
Winter Season
Cost per Ton
2011/12
$57.27
2012/13
$51.91
2013/14
$52.46
2014/15
$52.46
2015/16
$62.35
2016/17
$44.08
2017/18
$44.77
2018/19
$44.77
2019/20
$94.63
2020/21
$41.98
Historically, the cost of salt has fluctuated following a harsh winter or when salt shortages have occurred throughout the Midwest, not just Illinois. In 2019 there was a regional salt shortage due to previous harsh winters. The majority of the stockpiles from salt companies were used or sold during the prior winter. In addition, the two largest salt producers either had strike issues (not producing any salt) or challenges in their mining operations (producing less than average salt) coupled with Illinois waterway closures which delayed shipp...
Click here for full text