Lanark County Council has awarded a five-year contract for the supply and delivery of bulk coarse highway salt to Compass Minerals following a tender process that closed Aug. 5. The previous contract with Cargill Salt has ended.
Director of Public Works Sean Derouin said Compass Minerals ...was the sole bid received. The other two major suppliers in Ontario, Cargill Salt and Windsor Salt, were circulated in the tender.
This is a joint tender with all local municipalities except for Perth, which already has a contract with Compass. The participating local municipalities have agreed to purchase at least 80 per cent of their estimated annual tender quantity to support competitive pricing and reduce supplier risk related to supply and storage.
“A five-year contract will secure long-term supply and pricing certainty,” Derouin explained. This option protects the county and participating municipalities from future market volatility and reduces the risk of price escalation resulting from future supply shortages.” Municipalities may increase their annual quantities needed during the contract.
Public Works plans to help mitigate higher prices by increasing use of “winter mix,” which is a blend of sand, salt and stone dust, on lower-volume roads, while continuing to meet required maintenance standards. “Similar measures were successfully implemented during last year’s salt shortage, reserving salt applications for higher-volume roads and freezing rain events.”