Finance Committee - 11/15/2018 Page 8
Alderman Caron
| appreciate the explanation, thank you.
Alderwoman Kelly
Thank you, | just have a quick question about the numbers. It says the first year is $42,000.00 but then there
is additional 16% for contingency.
Mr. Danielson
So | added contingency just in case because some of ... this is something that you need experience with, this
contract. Some of it had to be based on estimates, number of retirements per year that we currently calculate,
number of estimates so we put in a number based on an average per year, 9 | believe full retirements. Then if
any additional people above the 9 want a full retirement calculation or estimate and they call into the service
center, that would be a cost, | believe it is 500 or 250, so | put in a few extra just in case something like that,
more people than anticipated need estimates.
Alderwoman Kelly
So would you see that contingency continuing year-to-year?
Mr. Danielson
Well it would be based on experience. So if the $42,000.00 was adequate or $45,000.00 was adequate, then
we would budget the next year based on that.
Alderwoman Kelly
Great, thank you.
MOTION CARRIED
From: Dan Kooken, Purchasing Manager
Re: Recommendation to Lock Electricity Rate
MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
EDF ENERGY SERVICES AT A RATE OF .0867 CENTS PER KILOWATT HOUR
ON THE QUESTION
Mayor Donchess
Mr. Kooken would you please explain this item?
Dan Kooken, Purchasing Manager
We have 25 accounts that we have been updating for electricity separately that had to do with potential net
billing and all those kinds of things. That was a one year contract, that contract came up in November as being
due, so we have extended that out. Standard Power is a broker that we work with with the Mine Falls and the
Jackson Hydro’s and they put it out to bid for us and the low bid was the result of ADF.
