07-0386R


RESOLUTION AUTHORIZING CITY OFFICIALS TO CONTRACT WITH VIELE CONTRACTING, INC., FOR APPROXIMATELY 17,700 TONS OF CLASS V GRAVEL FOR YEAR 2007 AT A TOTAL ESTIMATED AMOUNT OF $121,208.72.

BY COUNCILOR JOHNSON:

     RESOLVED, that city officials are authorized to contract with Viele Contracting, Inc., for the purchase and delivery of approximately 17,700 tons of Class V gravel as needed during year 2007 for the public works and utilities department in accordance with the city’s specifications and the vendor’s low bid of $113,811 (includes delivery) plus sales tax of $7,397.72 for a total estimated amount of $121,208.72, terms net 30, and payable from the following funds:

     (a)  $28,761.39 for 4,200 tons (Requisition No. 07-0029) payable from General Fund 100, Department/Agency 500, Organization 1920-2550, Object 5224; and

     (b)  $92,447.33 for 13,500 tons (Requisition No. 07-0126) payable from the following funds:

           (1)  $44,744.51 (48.4 percent)from Water Fund 510, Department/Agency 500, Organization 1945, Object 5224;

           (2)  $4,160.13 (04.5 percent) from Gas Fund 520, Department/Agency 500, Organization 1945, Object 5224;

           (3)  $34,852.64 (37.7 percent) from Sewer Fund 530, Department/Agency 500, Organization 1945, Object 5224; and

           (4)  $8,690.05 (9.4 percent) from Stormwater Fund 535, Department/Agency 500, Organization 1945, Object 5224.


STATEMENT OF PURPOSE:  This resolution authorizes the purchase of approximately 17,700 tons of Class V gravel from Viele Contracting, Inc., for a total estimated amount of $121,208.72, payable from the general, water, gas, sewer and stormwater funds. This amount includes delivery charges and sales tax.


The gravel will be used by the department of public works and utilities for various street and park maintenance projects.


Prices must remain firm from May 1, 2007, through April 30, 2008.


Viele Contracting, Inc., submitted the lowest base bid of three submitted.


Class V Gravel

Bids opened May 15, 2007

Bid Nos. 07-0029 & 07-0126

Requisition Nos. 07-0029 & 07-0126

Vendor

Base Bid

Duluth Ready Mix, Saginaw, MN

$138,945

Udeen Trucking, Inc., Superior, WI

$157,065

Viele Contracting, Inc., Duluth, MN

$113,811

Coons Aggregate Supply d/b/a Wissota
Sand and Gravel Company, Saginaw, MN

no bid

Hallet Dock Company, Duluth, MN

no bid

Ulland Brothers, Inc., Cloquet, MN

no bid