R2014-108 APPROPRIATE ADDITIONAL MOTOR FUEL TAX FUNDS

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fo PUBLIC WORKS MEMORANDUM NO. 2014-48 DATE: September 9, 2014 TO: Honorable Mayor McElroy and City Council Members FROM: Ryan P. McCrady, City Manager Richard G. Marley, P.E., Public Works Director SUBJECT: Allocation of Motor Fuel Tax Funds for 2014 Road Salt Purchase SUMMARY RECOMMENDATION: It is recommended that the City Council adopt the attached Resolution authorizing the Mayor to sign and the City Clerk to attest to revising the City's appropriation of Motor Fuel Tax(MFT) funds dedicated to general maintenance to include$355,492 for purchasing road salt. This revision increases the original Motor Fuel Tax appropriation from$439,500 to $794,992 to pay the City's general maintenance costs related to traffic signal maintenance, concrete street repairs, guardrail repairs, and purchasing road salt. PRIOR COUNCIL ACTION: January 21, 2014—Council approved Resolution R2014-02 appropriating $419,500 in Motor Fuel Tax funds for general traffic signal maintenance and to provide concrete for street maintenance for Fiscal Year 2014. The allocation of MFT funds to cover some of the City's general maintenance costs is approved yearly by the City Council. June 2, 2014—Council approved Resolution R2014-60 appropriating an additional sum of$20,000 in Motor Fuel Tax funds for general traffic signal maintenance and to provide concrete for street maintenance and guardrail replacement for Fiscal Year 2014. This brought the total MFT expenditure to $439,500 for general street maintenance. BACKGROUND: The City purchases road salt to help clear ice from the streets during the winter. Salt purchases are made through the State bidding process conducted by the Illinois Department of Central Management Services (CMS). In the spring of each year, the City must place an order with CMS before bids are received. During the winter of 2013-2014 the City used 4,100 tons of salt as part of its winter snow and ice control operations. This is a record amount of salt used by the City, during one winter. At the end of winter in April, 2014 the City's salt bin had about 100 tons of salt remaining. The bin holds 2,000 tons. Unfortunately, many cities in Illinois and the Midwest had similar experiences causing a salt shortage that is resulting in a significant increase in salt prices. The City salt costs rose from$60.51/ton paid last year to $96.79/ton for the coming season, a 60% increase. The City placed an order with CMS to purchase 4,000 tons of salt this year at a total cost of$387,160. Page I 1