04-0765R


RESOLUTION AWARDING CONTRACT TO VENTURE FUELS FOR PROVIDING COAL IN THE AMOUNT OF AN ESTIMATED ANNUAL TOTAL FOR YEAR 2005/2006 OF $1,184,545 AND FOR YEAR 2006/2007 OF $1,205,909.

BY COUNCILOR STOVER:

     RESOLVED, that Venture Fuels be and hereby is awarded a contract for furnishing and delivering 45,454.545 tons of coal for two heating season requirements beginning with year 2005/2006 and year 2006/2007 for the Duluth Steam Cooperative District I to produce an estimated 850,000 mm btu's in accordance with specifications on its low specification bid of $26.06 per ton for the year 2005/2006 season estimated annual total of $1,184,545, and $26.53 per ton for the year 2006/2007 season estimated annual total of $1,205,909, terms net, FOB destination; to be encumbered out of year 2005/2006 budget and year 2006/2007 budget.


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, 2005, to October 31, 2006, at a rate of $26.06 per ton for an estimated total of $1,184,545 and during the period of November 1, 2006, to October 31, 2007, at a rate of $26.53 per ton for an estimated total of $1,205,909 necessary to produce an estimated 850,000 MM BTU's from Venture Fuels to be paid from Steam District #1 Fund 0540. Venture Fuels was the lowest of the two companies who responded; to be encumbered out of year 2005/2006 budget and year 2006/2007 budget. The estimated cost for this purchase was $1,225,000 per year. Bid No. 04-0630


Tabulation of bids received November 1, 2004

Venture Fuels, Superior, WI

year 2005/2006

$1,184,545

year 2006/2007

$1,205,909

Midwest Energy Resources, Superior, WI

year 2005/2006

$1,282,715

year 2006/2007

$1,293,823