3.1.C. ERMU MINUTES 04-12-2011 - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission March 8, 2011 5.2 Review and Consider Bore Rie Purchase The 2011 budget contained a $200,000 line item for the purchase of a directional bore rig, trailer, modular mixing system, and additional related equipment. This type of equipment is not available through the Minnesota State Bids. However, National Joint Power Alliance (NJPA) is a government service cooperative that has been created through MN Stature 123A.21 and they have the government contract for this type of construction equipment. This agency provides a similar service as the Minnesota State Bids by MN Statute 471.59 and 471.345. Vermeer has the contract with NJPA for this type of equipment. The quote on a Vermeer directional bore rig, modular mixing system, and locator total $166,783.78. Bids on a trailer will be reviewed at a future meeting. Discussion followed. Daryl Thompson moved to purchase the Directional Bore Rig from Vermeer for $166,783.78. AI Nadeau seconded the motion. Motion carried 3-0. 5.3 Review and Consider Cable Plow Purchase Approved in the 2011 budget was the purchase of a cable plow. Under the same circumstances as the directional bore rig, this equipment is not available through Minnesota State Bids but is available through NJPA. The budgeted amount was for $150,000 and the quote received for a Vermeer cable plow after trade in of the Case 960 cable plow is $131,921.16. Al Nadeau moved to award the purchase of the Vermeer Cable Plow with trade-in of the Case 960 cable plow for $131,921.16. Daryl Thompson seconded the motion. Motion carried 3-0. 5.4 American Public Power Association 2011 Legislative Rally Update (Verbal) Troy Adams and Wade Lovelette updated the Commissioners on the Legislative Rally they recently attended in Washington, D.C. 5.5 Review and Consider Purchase Policies On January 14, 2003, the Elk River Municipal Utilities Commission approved a resolution to grant the purchase and payment of equipment, materials, and services necessary to ensure efficient operations. In 2009, the ERMU commission directed staff to temporarily establish the purchasing authority threshold to $10,000 on all budgeted and non -budgeted purchases. This was to be reevaluated at a future date. Often, the timely purchase of budgeted materials or equipment will exceed $10,000. Examples include transformers, meters, cable, and switchgear. At times these purchases may be time sensitive and it may not be efficient operations to wait for the next regularly scheduled Elk River Municipal Utilities Commission meeting to get approval for the purchase. These payments are documented in the check register and approved in the consent agenda by the Elk River Municipal Utilities