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Elk River Municipal Utilities Commission Meeting Minutes <br />July 11, 2023 <br />Page 7 <br /> <br /> <br /> Mr. Kerzman went on to explain that irrigation was expected to be installed the following <br />week with sod to be laid after. <br /> <br /> In response to Commissioner Bell’s inquiry, Mr. Kerzman explained that the car wash in the <br />facility is operating well with one minor part needing replacement. <br /> <br /> Moved by Commissioner Bell and seconded by Commissioner Westgaard to authorize staff <br />approval of Change Order no. 8. Motion carried 4-0. <br /> <br />5.3 Otsego Transformer Bid <br /> <br />Mr. Kerzman presented his memo reporting on the Otsego transformer bid opening. <br /> <br />Mr. Kerzman shared that the manufacturer being recommended is willing to adjust the <br />payment schedule to align with ERMU’s 2023 budget. He added that legal staff confirmed <br />there are no outstanding legal issues with the bid. <br /> <br />Noting that the selected bid exceeded budget, Commissioner Westgaard asked how the <br />overage would be funded. <br /> <br />Mr. Hanson explained the manufacturer is adjusting the payment structure to fit ERMU’s <br />2023 budget and the overage would be incorporated into future budgets. <br /> <br />Mr. Kerzman explained that payments are typically structured as 20% on order, 20% on <br />submittal of design drawings, and various percentages upon assembly, testing, and <br />installation. Mr. Kerzman explained that the manufacturer has agreed to receive 10% on <br />order to meet ERMU’s 2023 budget. <br /> <br />Mr. Hanson clarified that the motion should exclude the language regarding legal review as <br />published in the packet since legal review had been provided, finding no issues. <br /> <br /> Moved by Commissioner Zerwas and seconded by Commissioner Bell to accept WEG <br />Transformers USA LLC bid for transformer and award contract. Motion carried 4-0. <br /> <br />6.0 BUSINESS DISCUSSION <br /> <br />6.1 Staff Updates <br /> <br /> Mr. Hanson noted an update from his memo regarding the vacant water operator position. He <br />shared that ERMU has moved forward with converting the water operator position to a water <br />utility worker position. He added Mr. Ninow would elaborate on the matter. <br /> <br />42