By Gina Morton
The Daily Item
October 23, 2008 06:01 am
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With the winter season quickly approaching and road salt prices quickly rising, three Valley municipalities are considering joining a state program to obtain salt at a lower rate, while other boroughs and townships depend on a state program to buy their supplies each year.
According to a release, the deal is being offered by the state Department of Transportation and Department of General Services, through which PennDOT determined it could sell 82,000 tons to municipalities.
The release said Milton officials asked for 1,500 tons of salt, Turbotville for 44 tons and Union Township, Snyder County, for 50 tons.
Chuck Beck, Milton borough manager, said the borough usually goes out to bid for 1,500 tons of salt, and last year, the borough paid $58.34 a ton. This year, the bid came in at $96.11 a ton, a $37.77 increase.
A trade group called the Salt Institute blames the price spike on increased fuel costs and increased demand -- because several states reportedly ran out of salt last year and bought a lot more this year.
Salt also is moved by barges up the Mississippi River, and for about a month, traffic was closed due to a problem with some of the river locks, which added to the problem.
But through the PennDOT program, municipalities are given a set price of $76.95 a ton.
This set price would save Milton $19.17 a ton, something Beck said he would love to take advantage of. However, with a storage building capable of holding only 250 tons, he is unsure if the borough will be able to join in the program.
It would work well if Beck could order the salt as needed, he said, but if he can't do it that way, he would not be able to store it all in the building if required to take the entire 1,500 tons.
This Department of General Services' offer will not be available next year, and municipalities are urged to join COSTARS, another program offered through the department.
And while Beck sees the upside to joining the COSTARS program, he still sees two problems with it. One problem the borough faces is the requirement to buy the amount you bid for, whether or not you need that amount. If there is a mild winter, Beck said the borough could end up with too much salt and no place to store it.
However, if there is a bad winter, the borough could only purchase 20 percent more than the original bid, he said.
Officials of several boroughs take part in the COSTARS program and have seen the benefits, they said.
John Bickhart, Selinsgrove borough manager, said he believes the borough joined COSTARS for salt when it first was offered.
"The prices that we saw seem to be pretty competitive with what we had prior to that time and purchasing was easier for the borough because it had already gone through procurement procedures," he said.
Bickhart said the borough signs up for a minimum of 20 tons and a maximum of 60 tons a year. He said the borough uses 50 to 55 tons in a typical year, depending on ice and temperatures. This year, the borough is being charged $73.12 a ton.
Patricia Garrison, Lewisburg borough secretary, said the borough asked COSTARS for about 400 tons of salt. This year, she said they have been quoted a price of $68.98 a ton.
Northumberland borough also has taken part in the program for years, said borough Secretary Jan Bowman. The borough usually asks for 80 tons, she said Wednesday. It is charged $60.45 a ton.
Bickhart said he's never been disappointed with COSTARS, and long-term relationships like this one can have its advantages.
"Especially when supplies get scarce," he said. "We never have difficulties of getting anything. That may also be the power of the COSTARS program."
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