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Elk River <br />Municipal <br />13069 Orono Parkway <br />Elk River, MN 55330 <br />July 5, 2005 <br />ties <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jim Tralle <br />John Dietz <br />From: Bryan Adams <br />Subject: Smith Street Rebuild <br /> <br />phone; 763.441.2020 <br />Fax: 763.941.8099 <br />Attached is a copy of Connexus Energy-Elk River Municipal Utilities demarcation line <br />map reflecting the service territory acquisition area. This year we purchased area 16 with <br />131 customers. Our 2005 budget reflects $570,000 for acquisition costs. The actual <br />acquisition costs are substantially less than anticipated and are in the $325,000 range. <br />This is the good news. The bad news is, the underground cable is in need of replacement <br />because the neutral is corroded away. <br />Staff is proposing to re-conductor Smith Street as shown on the attached drawing for an <br />estimated total cost of $50,000. Attached is bid tabulation reflecting the cable installation <br />costs. The remainder of this area will be budgeted for re-conductoring next year. <br />Because this project is anon-budgeted item over $10,000. This commission must award <br />this bid. Staff recommends we proceed with re-conductoring this area, and the <br />installation of the electric cable be awarded to the lowest responsive bidder <br />