02-09-2016 ERMU MIN - Laserfiche WebLink

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