Title
RESOLUTION AUTHORIZING THE PURCHASE OF DELIVERED CLASS 5 GRAVEL, 3/4-INCH CRUSHED WASHED ROCK, RIP-RAP, AND SAND FROM DULUTH READY MIX, INC. FOR AN AMOUNT NOT TO EXCEED $380,692.50
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to purchase delivered class 5 gravel, 3/4-inch crushed washed rock, rip-rap, and sand from Duluth Ready Mix, Inc., in year 2019, for an estimated total amount not to exceed $380,692.50, payable as follows:
$86,637.75 510-500-1945-5224 (water fund, public works and utilities, utility operations, gravel and other mtce materials)
$56,260.50 520-500-1945-5224 (gas fund, public works and utilities, utility operations, gravel and other mtce materials)
$37,533.50 530-500-1945-5224 (sewer fund, public works and utilities, utility operations, gravel and other mtce materials)
$39,753.75 535-500-1945-5224 (stormwater fund, public works and utilities, utility operations, gravel and other mtce materials)
$106,692.00 110-500-1920-5223-02 (general fund, public works & utilities, street maintenance, salt & sand, sand)
$53,815.00 110-500-1920-5224 (general fund, public works & utilities, street maintenance, gravel & other mtce materials)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the purchase of delivered class 5 gravel, 3/4-inch crushed washed rock, rip-rap, and sand from Duluth Ready Mix, Inc., to be used by public works and utilities and street maintenance in year 2019, for an estimated amount of $380,692.50.
The purchasing division posted an invitation to bid on December 27, 2016, and received four bids. After careful review, the purchasing agent determined the low bid was Duluth Ready Mix, Inc. and entered into a one-year agreement with four optional renewals. Although the 2019 gravel and washed sand prices shown below increased from the original bid prices by $0.30 per ton, they are still competitive and lower than the other bids received.
Duluth
(Per Ton Prices) Ready Mix
Class V Gravel 11.75
3/4-in washed, crushed rock 18.45
Rip-rap 28.00
Sand 12.75