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HomeMy WebLinkAboutA001 - Council Action Form dated May 13, 2025ITEM #:29 DATE:05-13-25 DEPT:PW SUBJECT:CONTRACT FOR PURCHASE OF ROCK SALT FOR SNOW AND ICE CONTROL PROGRAM COUNCIL ACTION FORM BACKGROUND: Rock salt is the primary deicing chemical used by City staff during snow and ice control events. Usage varies annually based on winter weather conditions. However, based on historical data, staff typically plans for the purchase of 2,500 tons of rock salt. The City can currently store between 3,500 and 4,000 tons of salt in its salt storage facility. Staff estimates that there is approximately 1,900 tons of salt currently in storage, with an additional 500 tons yet to be delivered prior to the end of FY 2024/25. This contract is to supply rock salt for FY 2025/26 snow and ice control activities. Deliveries will be made as requested by the City throughout the winter season. Bids were received on April 18, 2025. For the purposes of evaluating the bids, the estimated total cost is based on ordering 2,500 tons of rock salt. Bidder Unit Price Estimated Total Cost Skyline Salt Solutions, LLC, Dubuque, IA $86.16/ton $215,400 Central Salt, LLC, Lyons, KS $93.98/ton $234,950 Austin Logistics, LLC, Detroit, MI $260.00/ton $650,000 The low bid is from Skyline Salt Solutions, LLC, Dubuque, IA, for the delivery of salt at $86.16 per ton. This is approximately 3.2% higher than the price for salt under the current FY 2024/25 contract of $83.49 per ton. The FY 2025/26 budget includes $215,000 in Road Use Tax Funding for the purchase of rock salt. Actual expenditures will depend on the quantity of salt used during the winter. If the cost of the required salt exceeds the budgeted amount, staff will amend the operating budget using Road Use Tax savings from other street maintenance activities. ALTERNATIVES: 1. Award a contract for 2025/26 rock salt requirements to Skyline Salt Solutions, LLC, Dubuque, IA, in the amount of $86.19 per ton, to be delivered as requested by the City throughout the winter season. 2. Award the contract to one of the other bidders. 3. Reject all bids and attempt to purchase rock salt on an as-needed basis. ? 1 CITY MANAGER'S RECOMMENDED ACTION: Rock salt is a critical component of the City’s snow and ice control strategy. Securing an annual supply contract ensures preparedness for winter weather events. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as noted above. 2