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9. B. 3.
Approval of Dust Control Contract Assignment
Jim Dyer, Corporation Counsel, Corporation Counsel
Resolved, that the Calhoun County Board of Commissioners does approve a Resolution consenting to the transfer of the contract for dust control services from Ivy MMR, LLC to Salt Solutions, LLC d/b/a Corrigan Environmental Services, as presented.
County Administration recommends approval of the Resolution
On February 20, 2020, the Calhoun County Board of Commissioners approved the award of a competitive bid to Ivy MMR, LLC to provided 2.2 million gallons of brine solution for dust control application, over three years. The total contract value was approximately $1.2 million dollars, or $393,800, annually.
Since the contract award, Ivy MMR has been in negotiations with affiliates of Corrigan Oil to sell substantially all of its assets, including the Calhoun County brine solution contract. Since the contract is for the purchase of a commodity at a defined specification and fixed cost the assignment of the contract to another fulfilling entity, particularly an entity acquiring the assets of the incumbent contractor, serves the interest of Calhoun County and accomplishes the objective of the County purchasing policy.
A copy of the narrative recommending approval of the original contract is attached for your reference.
None. Failure to approve the assignment would require rebidding of the contract at potentially unfavorable terms. Further, failure to approve the assignment without good cause could be considered a breach of contract subjecting the County to a claim for damages.
County Administration recommends approval of a Resolution consenting to the transfer of the contract for dust control services from Ivy MMR, LLC to Salt Solutions, LLC d/b/a Corrigan Environmental Services.
None. The transfer involes an existing contract within the existing approved budget appropriation.
Resolution Approving Contract Transfer
Original Board Narrative Awarding Contract
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