City approving $40M deal to ensure no more road salt shortages

The City of Hamilton is set to approve a $40-million, five-year deal for the supply of road salt, hoping to avoid last year's shortage, which left municipalities all across the northeast without enough of the ice-melting material. 

As a result of last winter’s severe conditions, the city is increasing the amount of salt it is ordering and has built a contingency into the contract should it need more.

We feel confident that we will have what we need.- Kelly Anderson, Hamilton ublic Works

“Staff increased their estimated quantities for this new contract and put in a provisional item for additional salt, if needed,” said public works spokesperson Kelly Anderson. “So we feel confident that we will have what we need.”

With many municipalities ordering more salt than in previous years, prices are up and the city is paying about 25 per cent more for salt this year, about $74 per tonne. The contract increases the price each year of the deal. 

The new deal is with Sifto Canada Corp., a new Ontario-based supplier and provides salt on an as-needed basis.

Winter deficit 

The city has been forced to reconsider elements of its winter planning after the 2013-2014 winter. In addition to the salt shortage, the winter has played a major role in a $12 million public works deficit for 2014. 

A series of back-to-back snowfall dumps in January put a sizable dent in the public works budget, with snow removal responsible for roughly $9.2 million of the $12.4 million. 

"Last year wasn't typical," said Bob Paul, the city's manager of winter control. As early as February, the city was forced to go into what he referred to as "salt conservation mode" when their previous road salt supplier, Cargill, couldn't ship any more into the frozen harbour. 

Paul said they had to increase the amount of sand in their salt mix to deal with the shortened supplies.

More storms hitting budget

Of the $9.2 million deficit, increased salt demand cost the city $2 million. The surplus of winter road cleanup budget was $3 million, enough to cover just under a quarter of the total public works deficit halfway through the year.  

The deficit estimates date from the end of June and do not include the latest two snow storms dumped on Hamilton so far this winter.

Paul said the city typically has 10-13 "piling" events a year, putting all 150 plows the city owns and subcontracts, and almost all of the 516 pieces of snow clearing machinery, out and into service. 

Last year's heavy season, which started with an ice storm near Christmas had what could be considered upwards of 18 piling events. 

Paul said the change in salt supplier gives them a better plan for the future. 

"We've bumped up our estimated quantities (of road salt) required. Plus the source is from Ontario," Paul said.