Signed Contract_Chamption Salt, LLC for Road Deicer Bid AwardCity of Dubuque Consent Items # 18.
ITEM TITLE:
SUMMARY:
SUGGESTED DISPOSITION:
Copyrighted
June 15, 2020
Signed Contract(s)
De -Icing Rock Salt Supply Agreement with Champion Salt,
LLC; Dupaco Voices, LLC Revocable License for
Fencing and Landscaping at 902 & 990 White Street.
Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
Champion Salt, LLC Agreement Supporting Documentation
Dupaco Voices, LLC Revocable License Supporting Documentation
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: John Klostermann, Public Works Director JK
SUBJECT: Road Deicer Bid Award
DATE: May 20, 2020
Dubuque
bitrel
All -America City
2007.2012.2013
2017*2019
INTRODUCTION
The purposes of this memorandum are to provide information and request your
approval of the FY21 winter season road deicer purchase with Champion Salt, LLC.
BACKGROUND
In April, with and on behalf of the cities of Asbury, Cascade, Epworth, Farley, Holy
Cross, and Peosta, along with the Dubuque Community School District, and the
Western Dubuque Community School District, the Public Works Department solicited
bids for road deicer for the coming winter season.
DISCUSSION
Bid proposals were solicited from four suppliers for four (4) barges or 6,000 ton (+/-) of
road deicer salt. The suppliers were Cargill, Inc. Champion Salt, LLC, Compass
Materials America, Inc. and Morton Salt, Inc. The pricing received is listed below.
Cargill, Inc.
Champion Salt, LLC
Compass Minerals America, Inc.
Morton Salt, Inc.
$61.15 per ton
$58.01 per ton
$58.53 per ton
$78.48 per ton
The lowest price received was from Champion Salt, LLC. and is a 3.63% decrease from
the $60.20 price we paid last season.
BUDGET IMPACT
The final cost for deicer salt is based on the total amount received I am estimating that
the City share of the order will be 4,500 tons (+/-) at a total cost of $261,045 or an
estimated $70,000 under our FY2021 approved budget of $350,955 (25054420-62640).
The remaining salt will be purchased by our bid partners and stored at our Purina Drive
facility. Our purchase partners will pay all costs related to their salt purchase, inbound
and outbound loading fees, and salt storage fees.
ACTION STEP
I request your approval to purchase four barges of road deicer salt (6,00 tons +/-) from
the low bidder, Champion Salt, LLC.
CC: Jenny Larson, Budget Director
Arielle Swift, Assistant Public Works Director
2
CHAMPION
S A L
DE-ICING ROCK SALT SUPPLY AGREEMENT
THIS DE-ICING ROCK SALT SUPPLY AGREEMENT ("Agreement") is made on the date of last
signature set forth below, by and between CHAMPION SALT, LLC ("Champion") and the undersigned
CITY/TOWNSHIP/VILLAGE ("Municipality").
WHEREAS, the Municipality published a bid solicitation for Rock Salt for Ice Control on or about April
16, 2020 ("Bid Solicitation"), for which sealed bids were opened on May 14, 2020, and for which Champion
was the sole awarded supplier following sealed bids and a determination that Champion is the overall lowest
responsive and responsible bidder ("Municipal Salt Award"); and
WHEREAS, the Municipality and Champion now desire to memorialize their contract and the parties'
obligations under the Bid Solicitation and resulting Municipal Salt Award, as set forth below.
NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and benefits set forth
below, and other good and valuable consideration, the sufficiency of which is acknowledged by the parties,
and with the intent to be legal bound hereby, the parties agree as follows:
1. Product Prices and Payment Terms. In accordance with the Bid Solicitation and Municipal Salt Award,
the unit price for Road Salt shall: $58.01 per U.S. ton, CIF, to the Municipality's Purina Drive barge
terminal facility dock (between Mile Markers 580 and 581, Dubuque, IA). The Municipality shall be
solely responsible for offloading the barges and typical machine cleaning of holds and replacement of
barge covers, as reasonably requested from the barge freight carrier. All references to Road Salt in this
Agreement shall mean the Road Salt bulk product expressly specified in the Bid Solicitation. Champion
shall invoice the Municipality for all delivered Road Salt, upon arrival of the barges to the specified
docks / delivery terminals. All Road Salt is sold to the Municipality NET 30 days from date of invoice,
and payment shall be made to Champion timely by the Municipality, without any setoff or deduction.
2. Quantity. Per the Bid Solicitation and Municipal Salt Award and subject to the limitations set forth
below, the Municipality agrees to purchase four (4) loaded barges of Road Salt, totaling approximately
6,000 tons of Road Salt +/- 10% (at Champion's discretion), based upon the certified draft surveys for
the loaded barges. The certified draft surveys shall be final and binding upon the parties and shall be
used to determine the aggregate tonnage of Road Salt delivered in the barges, and for which the final
purchase price for the Road Salt shall be calculated. For avoidance of doubt and for illustration
purposes, if the total delivered tonnage of Road Salt from the four delivered barges, per certified draft
surveys, is 6,100 tons, then the final purchase price would be $353, 861.00 ($58.01 x 6,100 tons).
3. Deliveries. All Rock Salt barges shall be delivered to the Municipality's specified barge dock terminal
in the Bid Solicitation. Deliveries and permitted no -charge days for offloading the barges shall be as
set forth in the Bid Solicitation. Any excess days (whole or partial) used to offload the barges, in excess
of the number of days allotted in the Bid Solicitation, shall result in a per day demurrage charge of
$300.00 per day to the Municipality, payable upon proper invoice.
4. Incorporation of Bid Solicitation Terms and Conditions. All of the terms and conditions set forth in the
Bid Solicitation, with respect to Champion's performance as the awarded supplier who has received
the Municipal Salt Award, and with respect to the Municipality's performance as the purchaser, are
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CHAMPION
SALT
hereby incorporated into and made a part of this Agreement. Any conflicts and inconsistencies between
this Agreement and the Bid Solicitation shall be governed and controlled by this Agreement.
5. Term. The term of this Agreement is six (6) months, commencing on June 1, 2020 and ending on
November 30, 2020. All Road Salt barges shall be delivered to the required barge terminal dock on or
before November 1, 2020.
6. Miscellaneous. This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, and all of which together shall be one and the same instrument. Further, this
Agreement may be executed and delivered electronically, including, via email, DocuSign and other
such means, and all such PDF and other electronic versions of the executed Agreement shall be
enforceable as originals. This Agreement shall be governed by Iowa law. This Agreement shall not be
amended, modified or cancelled unless such amendment, modification or cancellation is set forth in a
written instrument signed by both parties. This Agreement shall not be assigned by the Municipality,
as all contract prices are based upon the delivery locations specified in the original Bid Solicitation.
This Agreement may be assigned by Champion upon written notice of assignment to the Municipality.
Champion:
Champion Salt, LL
liability. impany '
B
ichigan limited
The Municipality:
City of Dubuque, IA
By:
Its: CEO Title.
Dated: May 21, 2020
Dated: VOie. , 2020
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