00-0860R

RESOLUTION AWARDING CONTRACT TO VENTURE FUELS FOR PROVIDING COAL, IN THE AMOUNT OF ESTIMATED ANNUAL TOTALS FOR YEAR 2003/2004 OF $1,030,454.53 AND FOR YEAR 2004/2005 OF $1,048,636,35.

BY COUNCILOR ECKENBERG:

        RESOLVED, that Venture Fuels be and hereby is awarded a contract for furnishing and delivering coal for two heating season requirements beginning with year 2003/2004 and year 2004/2005 for the Duluth Steam Cooperative District I to produce an estimated 800,000 mm btu's in accordance with specifications on its low specification bid of $22.67 per ton for the year 2003/2004 season estimated annual total of $1,030,454.53, and $23.07 per ton for the year 2004/2005 season estimated annual total of $1,048,636.35, terms net, FOB destination; to be encumbered out of year 2003/2004 budget and year 2004/2005 budget.

        BE IT FURTHER RESOLVED, that proper city officials be hereby authorized to negotiate price on an annual base depending on changes in market.


STATEMENT OF PURPOSE:  This resolution will authorize the purchase of fuel requirements of an estimated 45,454.545 tons during the period of November 1, 2003, to October 31, 2004, at a rate of $22.67 per ton for an estimated total of $1,030,454.53 and during the period of November 1, 2004, to October 31, 2005, at a rate of $23.07 per ton for an estimated total of $1,048,636.35 necessary to produce an estimated 800,000 MM BTU's from Venture Fuels to be paid from Steam District #1 fund.  Venture Fuels was the only supplier who responded; to be encumbered out of year 2003/2004 budget and year 2004/2005 budget.  Bid No. 00-9900
 
Tabulation of bids received December 8, 2000
Venture Fuels, Superior, WI Year 2003/2004 - $1,030,454.53
Year 2004/2005 - $1,048,636.35