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Ji <br />Elk River <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Chris Kerzman — Engineering Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />April 9, 2024 <br />5.3 <br />SUBJECT: <br />Award of Recloser Bid <br />ACTION REQUESTED: <br />Adopt Resolution 24-6 Accepting Border States bid for 26 substation reclosers and awarding <br />contract. <br />BACKGROUND: <br />ERMU has been replacing existing mineral oil filled substation reclosers with solid dielectric <br />insulation reclosers as existing oil filled equipment has aged. Staff solicited bids for replacement <br />of remaining oil filled reclosers, as well as spare units and others for anticipated additions. <br />Staff's desire to expedite the replacement of the oil filled equipment would standardize <br />inventory, reduce maintenance associated with oil filled equipment, and is based on recent <br />experience with oil filled equipment failing manufacturer testing guidelines during preventative <br />maintenance. Solid dielectric insulation reclosers require little to no maintenance over the life <br />of the equipment. Additionally, removal of oil filled reclosers would bring the recloser <br />equipment up to current manufacturing standards. Staff advertised for bids on March 9, 2024, <br />with bids opened on April 2, 2024. Two bids were received, with total costs ranging from <br />$507,910.00 to $852,827.82. <br />DISCUSSION: <br />After evaluating the bids, it was determined the low bidder, WESCO's bid for ABB OVR <br />reclosers, was not in conformance with the specifications due to non -compatibility with ERMU's <br />existing controllers. Compatibility with existing controllers was a requirement in the original <br />specifications and was reaffirmed in response to a clarifying question in Addendum 1. <br />The other bidder, Border States' Eaton NOVA Recloser, incorrectly included a vendor -supplied <br />controller in their pricing even though the specifications clearly stated the controller was <br />provided by the owner (ERMU). Border States' bid package, however, included a quote sheet <br />documenting the line -item pricing for the recloser separate from the controller. After <br />conferring with legal counsel, staff recommends evaluating Border States' bid based on their <br />line -item price for just the recloser (not including the controller), which would still allow <br />comparison with any other responsive bidders as to that item, and since the bid specifications <br />clearly state the controller is provided by the owner. When including only the line items that <br />are in the specifications, Border States' bid amount for 26 reclosers is $565,576.44. <br />Page 1 of 2 <br />