Council approves deal to continue electric conversion

At Tuesday’s meeting, the city council approved a two year master contract with Midwest Cabling for boring work on the electric department’s underground conversion.

In the past, the city considered buying its own boring machine and completing the work itself, but decided against that option.

A new boring machine would cost the city around $200,000, but the city would also have to buy boring materials and factor in labor costs. It’s estimated that the cost through the master contractor for boring the 50,000 feet needed for the town’s underground conversion of its main corridor will cost the city around $700,000. When factoring in depreciation of the machine and other costs, buying the machine and utilizing the master contractor would cost about the same price, according to the electric department.

Different types of bores have varying prices, but Midwest Cabling will charge the city $14 per foot for most of its work. Electric Superintendent Mike Palmer does not expect to finish the 50,000 feet in two years. He believes completing 20,000 feet in two years is more feasible.

The city received four bids for the master contract on June 17. Midwest Cabling is based in Sterling.

The city council also approved a bid for a new transformer for the electric department’s south substation on Tuesday for around $540,000.

The city received seven bids for transformers on June 5 and decided on Delta Star, not because it was the lowest bid but because it was the best value when factoring in energy efficiency.