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#05 Discussion and action on salt storage facility proposal DEPARTMENT OF PUBLIC WORKS MEMORANDUM May 4, 2009 TO: City Council FROM: John Whitcomb, Operations Director SUBJECT: Proposed Salt Storage Facility Summary This memo examines issues related to a staff recommendation to construct a new salt storage facility at the City Services Center versus construction at some satellite location. Staff Recommendation Following Council discussion, staff recommends the City Council authorize construction of a salt storage facility at the City Services Center. Recommended Motion I move to approve construction of a salt storage facility at the City Services Center as recommended by staff. City Manager Recommendation No recommendation, since this issue is a continuation from last Summer. Request This is in response to Councilmember McDonald’s questions regarding the recommendation to construct a new salt storage facility at the City Services Center. Specifically, since a satellite location for the facility is not being proposed, is it necessary to construct additional capacity at the City Services Center. Background The concept of a satellite salt storage facility was just that - conceptual. At the time, the 2008 Note Issue was presented to Council, staff had not yet evaluated or identified a satellite location. This should have been made clearer to Council in the information prepared for the 2008 Note Issue. However, lack of a satellite location does not eliminate the need for additional storage capacity, and this was also conveyed in information prepared for the 2008 Note Issue. Satellite Location Operations at salt storage facilities are noisy and can take place at all hours. And the facilities themselves are not aesthetically pleasing. After a lengthy review, staff has been unable to identify a satellite location that will garner a positive recommendation from Community Development staff (noise; aesthetics) and that will serve an appropriate number of routes relative to 1 the capacity of the proposed facility. Constructing a smaller storage facility at one of the sites receiving tentative approval form Community Development staff is not recommended for the reasons discussed below. Additional Storage Capacity In an “average” winter we typically use 4,000 tons of salt. However, during each of the last three (3) winters we have used over 6,000 tons of salt, and in the winter of 2007 – 2008 we used over 8,000 tons. At the present time we have the capacity to store 2,900 tons of salt, or 73% of our average usage. The requested facility would increase our storage capacity by 2,000 tons to 4,900 tons. For the winter of 2009 – 2010 we have placed an order for 5,000 tons through the State bid. Staff believes maximizing storage capacity remains the primary objective to address recurring supply problems and the resulting negative influence on operations. The City’s salt supply has frequently been disrupted by delivery problems and by extended and/or severe winter seasons. Delivery problems routinely occur, even during average seasons. When supply runs low, the City has had to mix sand with salt and has also had to reduce service levels. During the 2000/2001 season and the past two seasons, the amount of sand mixed with salt was significant. This negatively impacts service levels in that it takes longer for streets to clear of snow and ice (safety), and significant additional cost is incurred to clean sand from catch basins and during spring sweeping operations. The past two seasons, salt usage at residential intersections was stopped at some point during the season in order to stretch supply (safety). Additional storage can also add flexibility when placing bids for salt. In the bid process, a municipality must guarantee it will purchase the quantity it bids. Therefore, when determining bid quantity, consideration must be given to the amount of salt on-hand prior to the season, the amount that might be used during the season and the amount of storage space available. The tendency is for the bid quantity to be conservative (low) so that storage capacity isn’t exceeded. This exacerbates supply problems during severe and/or extended winter seasons. Increasing capacity adds flexibility in determining the quantity to bid and can also provide a buffer against annual price increases. cc: Jacob J. Winzenz, Dir. Of Administrative Services/Assistant City Manager 2