01-26-2015 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, January 26, 2015 7:00 o’clock p.m. ____________________________________________________________________________________ Page 11 of 14 (8. BULK FUEL CONTRACT continued) Levang stated by only contracting for 75 percent of the City’s fuel needs, there is some cushion there, and that the savings last year were significant. Edwards stated the City does not want to enter into more than what they might use because they would need to pay for any overage. Cornick asked if there is any advantage to negotiating a contract that would include Mound vehicles or Spring Park vehicles. Edwards stated to his understanding no other city contracts with Orono on this bulk fuel contract. Edwards indicated there are a number of municipalities that enter into group agreements with the state but that the state’s rate is approximately $2.60 a gallon. Cornick asked if there is money that could be saved if Orono would join with Long Lake in negotiating this contract. Edwards stated he has not explored that but to his knowledge they would not. Edwards stated Orono is entering into a contract with the same contractor that provides the state’s fuel. Loftus stated the Long Lake Fire Department has asked about partnering with the City on its fuel purchases but that Orono is limited on the size of its tanks. Loftus stated it did not make financial sense to purchase bigger tanks to accommodate their request in the past. McMillan stated the positive is the City knows what their fuel budget is for the year, which was always something that was a big variable. Edwards noted the City would have lost money if they had gone in with the state contract. Levang moved, Cornick seconded, to authorize Public Works Director Adam Edwards to enter into a contract on behalf of the City of Orono at the prices and quantities listed in Paragraph 7 of Staff’s Memorandum dated January 26, 2015. VOTE: Ayes 3, Nays 0. *9. 2014 SANITARY SEWER REHABILITATION PROJECT CHANGE ORDER NO. 1 Levang moved, Cornick seconded, to approve Change Order No. 1 for the 2014 Sanitary Sewer Rehabilitation. VOTE: Ayes 3, Nays 0. *10. CLEANING CONTRACT AMENDMENT Levang moved, Cornick seconded, to approve the Cleaning Contract Addendum with a start date of February 1, 2014, and direct Staff to solicit bids for a new cleaning contract. VOTE: Ayes 3, Nays 0.