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RESOLUTION AWARDING CONTRACTS TO ULLAND BROTHERS, INC., AND NORTHLAND CONSTRUCTORS OF DULUTH, LLC, FOR BITUMINOUS (HOT MIX BLACKTOP) FOR STREET MAINTENANCE ACTIVITIES IN 2018.
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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 2018 for an estimated amount not to exceed $106,403.00, payable as follows:
$41,775.00 110-500-1920-5222 (General Fund; Public Works and Utilities; street maintenance; blacktop)
$64,628.00 290-500-5222 (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, LLC (Northland) for bituminous for street maintenance activities in 2018 for an estimated amount not to exceed $319,211.50, payable as follows:
$4,975.50 411-035-1685 (permanent improvement, capital projects accounts, street repair & mtc)
$116,325.00 110-500-1920-5222 (General Fund; Public Works and Utilities; street maintenance; blacktop)
$197,911.00 290-500-5222 (street system maint utility; Public Works and Utilities; blacktop)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a split award of the approximately 9,100 tons of bituminous needed for street maintenance activities for the 2018 construction season. The total amounts requested are estimates only, and do not guarantee that a minimum amount of product will be purchased from either vendor.
The purchasing division posted an Invitation for Bids on January 12, 2018, and received two 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, and the Northland plant is located on Garfield Avenue.
Although Northland’s bid price per ton is lower than Ulland’s, splitting the award allows the city to purchase blacktop from Ulland for projects in the eastern and northern areas of the city and reduce worker travel time for those projects. It also ensures availability of material during times when the Northland plant is shut down.
Bituminous specifications are based on the current MN Department of Transportation Construction Standards. Two different mixtures were bid; the only difference being that the SPWEA340C 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 four percent of the total tonnage purchased will require the more expensive “C” mixture. Bid results are shown below.
Mix SPWEA340B Mix SPWEA340C
Company Bid Price/Ton Bid Price/Ton
Ulland Brothers, Inc. $47.00 $55.00
Northland Constructors of Duluth, LLC $44.00 $49.50