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RESOLUTION AWARDING CONTRACTS TO ULLAND BROTHERS, INC.; NORTHLAND CONSTRUCTORS OF DULUTH, INC.; AND MONARCH PAVING COMPANY FOR BITUMINOUS (HOT MIX BLACKTOP) FOR STREET MAINTENANCE ACTIVITIES IN 2023.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a contract with Ulland Brothers, Inc. (Ulland) for bituminous for street maintenance activities in 2023 for an estimated amount not to exceed $93,000, payable from fund 290-500-5222 (street system maint utility; Public Works and Utilities; blacktop)
FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into a contract with Northland Constructors of Duluth, Inc. (Northland) for bituminous for street maintenance activities in 2023 for an estimated amount not to exceed $151,400, payable from fund 290-500-5222 (street system maint utility; Public Works and Utilities; blacktop)
FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into a contract with Monarch Paving Company (Monarch) for bituminous for street maintenance activities in 2023 for an estimated amount not to exceed $154,000, payable from fund 290-500-5222 (street system maint utility; Public Works and Utilities; blacktop)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a split award of the approximately 5,000 tons of bituminous needed for street maintenance activities for the 2023 construction season. The total amounts requested are estimates only, and do not guarantee that a minimum amount of product will be purchased from any vendor.
The purchasing division posted an Invitation for Bids on April 19, 2023, and received three bids by the due date. The bids were evaluated based on the total overall cost to the city, factoring in the bid price and the estimated travel time to each company’s plant location. The product is picked up on an as-needed basis by street maintenance crews. The Ulland plant is located at 6274 Rice Lake Road, the Northland plant is located on Garfield Avenue, and the Monarch plant is located at 5927 Albany Avenue, Superior, WI.
Although Ulland’s bid price per ton is lower than Northland’s and Monarch’s, splitting the award allows the city to purchase blacktop from multiple vendors for projects that are closest in proximity to the plant locations to reduce worker travel time and mileage costs for those projects. It also ensures availability of material during times when Ulland’s plant is shut down. In addition, having multiple options for the purchase of materials gives the city flexibility when supplies are limited at one plant or another.
Bituminous specifications are based on the current Minnesota Department of Transportation Construction Standards. Two different mixtures were bid; the only difference being that the TTWE Special mixture is more resistant to thermal cracking due to the grade of binder used to make the asphalt. The type and quantity of blacktop purchased is at the discretion of the city and will depend upon the job. It is estimated that approximately fifty percent of the total tonnage purchased will require the more expensive special mixture. Bid results are shown below.
Mix SPWEA340B Mix TTWE Special
Company Bid Price/Ton Bid Price/Ton
Ulland Brothers, Inc. $62.00 $96.00
Northland Constructors of Duluth, Inc $70.00 $114.00
Monarch Paving Company $83.75 $110.00