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Council awards bid for Class 5 road material; noted budget shortfall offset from paving funds
Summary
Hibbing approved a quote from Paul Shade and Sons to purchase 10,000 tons of Class 5 road material; staff said the purchase cost of $992,857 exceeds the $80,000 budget and will be offset using savings from a paving project shortfall.
The Hibbing City Council on May 7 approved awarding a quote to Paul Shade and Sons to purchase 10,000 tons of Class 5 road material used to maintain the city’s gravel roads.
City Engineer Jesse Storey told the council the city purchases Class 5 to maintain roughly 98 miles of gravel roads and that current inventory was low. He presented a quote from Paul Shade and Sons for the purchase; the meeting transcript records the purchase price as $992,857 and noted the city had $80,000 budgeted for the item. “We do use this to maintain our 98 miles of gravel roads ... The purchase is $992,857. We were under by about $200,000 on our paving project. So I'd like to use that to offset the balance that we're short,” Storey said. Council approved the quote by voice vote.
Staff described a proposed budget transfer to cover the difference between the budgeted amount and the quoted purchase price; the council approved proceeding with the purchase and the implied budget adjustment. The meeting record does not provide contract details, delivery schedule, or a line‑by‑line accounting of the budget transfer.
