2008-08-25 Regular Council Session Agenda

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Council Agenda Item Cover ________________________________________ MEETING DATE: August 25, 2008 AGENDA ITEM TITLE: Annual Salt Contract AGENDA SECTION: Consent CAN THIS ITEM BE RESCHEDULED? : No BACKGROUND REVIEW: During sleet, snow and/or ice storms, Public Works mobilizes city crews to ensure that public streets, bridges, and parking areas are safe for traffic. As a practice, when snow accumulations approach two inches, crews are dispatched to begin snow plowing operations on bridges, priority roads and finally, if required, the remaining residential streets. The City has significantly reduced the amount of salt applied in snow/ ice control efforts by using alternative chemicals, which are more environmentally friendly. Whenever practical, calcium chloride, which is less harmful to the environment, is used as an anti-icing strategy. The application of anti-icing materials helps prevents snow from binding to the pavement. Anti-icing strategies are not effective during sleet, rain, and extremely heavy snowstorms; therefore, the city uses a calcium chloride/rock salt mix as its de-icing strategy. The City participates in a salt coop comprised of 40 local municipalities. The City of Chesterfield receives competitive bids on behalf of the coop. The coop salt unit price per ton is normally 50–100 % less than the spot market unit price depending on market conditions. Further, delivery of salt from the spot market is subject to significant weather delays, which could potentially paralyze the city in a severe snow/ice storm. Last year the City and the region experienced a significant increase in the number of snow events, resulting in an increased need for anti-icing/de-icing activities. Salt supplies were in critical demand region-wide with some municipalities running out of snow and ice control materials. In a couple of instances our stocks were nearly depleted but we were able to access the spot market and obtain supplies from nearby sources. This year salt prices have increased 52%. BID RESULTS: $39.41 The coop unit price for rock salt is,up from $26.43 per ton for fall $43.85 delivery last year; and per ton for winter delivery, up from $27.93. We increased our salt order to 1200 tons from 1000 tons the previous year, as our reserves are low. We also have the ability to forego the February delivery and save on inventory if there is a mild winter. RECOMMENDATION: Accept the bid received from the City of Chesterfield for the salt coop unit prices. It is estimated that a total of 1200 tons is needed this year at a total cost of $49,068.