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cost to run the ad may exceed the value of the item for sale. There are also items which <br /> have no market in the demographic of the typical circulation of the official newspaper. <br /> After review and recommendation of legal counsel, staff is recommending an option for <br /> posting those items on the Utilities' website and that a threshold be established for a <br /> negotiated sale that is consistent with the established spending of the department heads. <br /> Peter Beck added that his recommended changes allow a little more flexibility with the <br /> policy while still maintaining the transparency to the public. There was further discussion. <br /> Al Nadeau made a motion to approve the revised Use and Disposal of Utility Property <br /> Policy. Daryl Thompson seconded the motion.Motion carried 3-0. <br /> 5.6 Bids for the Water Treatment Plant#7 Expansion for Well#9 <br /> The Water Treatment Plant#7 Expansion has been designed and noticed for formal bids. <br /> Eric Volk shared that the bid opening was on January 28, 2016, and that we received eight <br /> sealed bids for the project. The low bidder was Municipal Builders, Inc., with a total bid of <br /> $1,450,753.00. The commission inquired as to what the estimated cost of the project was. <br /> Eric Volk responded that the Engineer's Estimate came in at $1,599,015.00. Staff is <br /> recommending the commission award the Water Treatment Plant#7 Expansion bid to <br /> Municipal Builders, Inc. <br /> Daryl Thompson made a motion to award the Water Treatment Plant#7 Expansion <br /> bid to Municipal Builders,Inc. Al Nadeau seconded the motion. Motion carried 3-0. <br /> 5.7 Bids for Electric Wire <br /> The underground electric cable required for the 2016 capital construction projects and <br /> maintenance has been determined and was noticed for formal bids. The bid opening was <br /> on February 8, 2016. The bid tabulation was distributed at the meeting. Troy Adams went <br /> over the bid tabulation in detail. He noted that the items hi-lighted in yellow didn't meet <br /> our specs or was incorrectly bid. Based on Border States having the lowest package bid <br /> with the product we like to use, staff is recommending the commission award the package <br /> bid to Border States with their escalated pricing of$332,903.20. The commission had a few <br /> questions. Staff responded. There was further discussion on firm pricing versus escalated <br /> pricing. In the past, staff has typically recommended awarding the bid with firm pricing, <br /> but based on the current less volatile copper market, staff is recommending the bid with <br /> escalated pricing this year. As the escalated price may fluctuate, John Dietz requested that <br /> once all the wire is purchased, staff report back to the commission on what the total actual <br /> cost was. <br /> Daryl Thompson made a motion to award the package cable bid to Border States for <br /> their escalated price of 332,903.20. Al Nadeau seconded the motion. Motion carried <br /> 3-0. <br /> Page 5 <br /> Regular meeting of the Elk River Municipal Utilities Commission <br /> February 9,2016 <br /> 27 <br />