Title
RESOLUTION AUTHORIZING A CONTRACT WITH DULUTH READY MIX, INC., FOR AN ESTIMATED 8,570 TONS OF DELIVERED WASHED SAND FOR AN AMOUNT NOT TO EXCEED $106,696.50.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a contract with Duluth Ready Mix, Inc. for the purchase and delivery of washed sand in year 2018, for an estimated total amount not to exceed $106,696.50, payable from 110-500-1920-5223-02 (General Fund, Public Works and Utilities, street maintenance, salt & sand, sand).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a contract with Duluth Ready Mix, Inc. for the purchase and delivery of an estimated 8,570 tons of washed sand to be used by street maintenance in year 2018, for an amount not to exceed $106,696.50.
The purchasing division posted an invitation to bid on December 27, 2016 for a one-year agreement with four optional one-year renewals, and received four bids. After careful review, the purchasing agent determined the low bid was Duluth Ready Mix, Inc. For 2018, Duluth Ready Mix has agreed to honor their 2017 bid price of $12.45 per ton, and this purchase will be under year two of a possible five-year agreement.