Morton Salt Agreement_2011-2012 Winter SeasonMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Road Deicer Salt for the 2011 -2012 Winter Season
DATE: March 31, 2011
Public Works Director Don Vogt recommends City Council approval to inform Morton
Salt International LLC of the City's intent to purchase up to 7,000 tons of salt from their
remaining supplies on May 1 at a cost of $42.98 per ton. The total cost to purchase
and move 7,000 tons of Morton salt to the City's storage area would be approximately
$350,000. Funds are available in the Fiscal Year 2012 City budget.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Don Vogt, Public Works Director
Michael C. Van Milligen
Dubuque
All- Ameaica City
1 ,
2007
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Don Vogt, Public Works Director DAI
SUBJECT: Road Deicer Salt for the 2011 -2012 Winter Season
DATE: March 31, 2011
Dubuque
kiltd
All- Arnedca city
2007
INTRODUCTION
The purposes of this memorandum are to provide information and recommend a course
of action regarding securing road deicer salt supplies for the 2011 -2012 winter season.
BACKGROUND
The City of Dubuque's Salt Storage and Handling Agreement with Morton Salt
International LLC provides for the City having the right to purchase any supplies
remaining on Morton's leased area after April 30 — to a maximum of 10,000 tons and at
a cost of $42.98 per ton.
DISCUSSION
At the present time, Morton has approximately 9,300 tons of road deicer salt still in
storage at the City's Purina Drive Terminal. While it is unknown as to whether any of
that salt will still be on site at the end of April, I do recommend that the City inform
Morton of its intent to purchase up to 7,000 tons of its stockpile for itself for next winter.
Coupled with the still- unused supplies that the City purchased last summer, it would
then have adequate supplies ( @12,000 tons) for the 2011 -2012 winter season. The
contract price of $42.98 equals the low bid the City received last year for its 2010 -2011
supplies. However, the City's bid award price of $42.98 last year was not its final price.
In addition, there were costs for a contractor to offload the City's barges, and then
weigh, pile and cover the salt. There would be very similar handling costs for the
remaining Morton salt, since it would have to be loaded, weighed, and moved to the
City's own storage area. But given the sharp increase in the cost of diesel fuel over the
last year, I would highly doubt that road deicer salt prices will be found to be lower this
year if the City is forced to solicit bid prices in the coming months.
Since the recommended purchase from Morton would be for the FY12 winter season, I
further recommend that it be charged to the Public Works Department's FY12 snow and
ice control budget. That budget, as approved by the City Council earlier this month,
provides $408,925 for the purchase of road deicer salt supplies. Street and Sewer
Maintenance Supervisor John Klostermann estimates that the total cost of purchasing
and moving 7,000 tons of Morton salt to the City's storage area would be approximately
$350,000.
ACTION STEP
I request your consideration of the proposed course of action outlined above and your
authorization to inform Morton Salt International LLC of the City's intent to purchase up
to 7,000 tons of its remaining supplies on May 1St
CC: Jenny Larson, Budget Director