DISCLAIMER

 

07-0065R


RESOLUTION AWARDING A CONTRACT TO VENTURE FUELS FOR PROVIDING COAL TO DULUTH STEAM COOPERATIVE DISTRICT 1 FOR HEATING SEASONS AS FOLLOWS: $1,533,060 FOR 2007/2008; $1,588,140 FOR 2008/2009; AND $1,643,220 FOR 2009/2010, FOR A THREE-YEAR ESTIMATED TOTAL OF $4,764,420.

BY COUNCILOR JOHNSON:

     RESOLVED, that Venture Fuels be and hereby is awarded a contract for furnishing and delivering approximately 162,000 tons of coal to the Duluth Steam Cooperative District I for three heating seasons, 54,000 tons per year to produce an estimated 850,000 MM BTUs in accordance with specifications on its low bid of $28.39 per ton for year 2007/2008 with an estimated annual total of $1,533,060; $29.41 per ton for year 2008/2009 with an estimated annual total of $1,588,140; and $30.43 per ton for year 2009/2010 with an estimated annual total of $1,643,220, for a three-year estimated total of $4,764,420, payable from Steam Fund 540, Department/Agency 920, Organization 1490,Object 5387.


STATEMENT OF PURPOSE:  This resolution will authorize the purchase of fuel requirements from Venture Fuels for use by the Duluth Steam Cooperative as follows:


     1.   An estimated 54,000 tons of fuel during the period of November 1, 2007, to October 31, 2008, at a rate of $28.39 per ton for an estimated total of $1,533,060 necessary to produce an estimated 850,000 MM BTUs;

     2.   An estimated 54,000 tons of fuel during the period of November 1, 2008, to October 31, 2009, at a rate of $29.41 per ton for an estimated total of $1,588,140 necessary to produce an estimated 850,000 MM BTUs;

     3.   An estimated 54,000 tons of fuel during the period of November 1, 2009, to October 31, 2010, at a rate of $30.43 per ton for an estimated total of $1,643,220, necessary to produce an estimated 850,000 MM BTUs.


The estimated cost for this purchase was $4,480,380.


Venture Fuels was the lowest of the two companies who responded with bids. Venture’s offer will expire after February 9, 2007.


Requisition No 07-0034

Tabulation of bids opened January 18, 2007

Vendor

2007/2008

54,000 tons

2008/2009

54,000 tons

2009/2010

54,000 tons

TOTAL

Venture Fuels, Superior, Wisconsin
9,350 BTUs per ton

$1,533,060

28.39/ton

$1,588,140

29.41/ton

$1,643,220

30.43/ton

$4,764,420

Westmoreland Coal Sales, Burnsville, Minnesota
8,660 BTUs per ton

$1,654,560

30.64/ton

$1,682,100

31.15/ton

$1,710,720

31.68/ton

$5,047,380