5.6. ERMUSR 10-11-2011 - Laserfiche WebLink

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and the National Electric Code. Generally speaking, this is an opportunity for ERMU to help create efficiencies and provide better value to our residents, businesses, and customers. There are a number of issues to coordinate with the City. The street lights installed on Hwy 10 are currently under a maintenance contract with a third party. Elk River Municipal Utilities would not be able to take over maintenance of these lights until that contract is done or terminated. Also, there are street lights that are located outside of Elk River Municipal Utilities' electric service territory yet located within the corporate boundaries of the City of Elk River. Elk River Municipal Utilities would not be able to take over the maintenance of these lights until that service territory is acquired. The acquisition of service territory within the corporate boundaries of a city is within the legal right of the municipal utilities since 1974. Also, there may be street lights that are recorded as assets of the City. These would need to be transferred to the Utilities. FINANCIAL IMPACT: The City has recently added $10,000 for street light replacement or maintenance to the 2012 City budget. This would be a reoccurring yearly budget item. By shifting these costs to Elk River Municipal Utilities, this would eliminate these costs from the City budget. These capital costs would be included under a new street lighting maintenance category in the Elk River Municipal Utilities capital budget. Elk River Municipal Utilities would need to inventory and assess the street lighting to create a structured maintenance program. Initially, this budget Line item would be listed as $15,000. This would not be an increase in the capital budget, but rather a displacement of other capital maintenance projects. After a year to assess, ERMU will be able to more accurately prioritize maintenance projects including street lighting and determine an appropriate annual maintenance amount for budgeting. ACTION REQUESTED: Staff recommends approving the proposed ERMU Street Light Installation and Maintenance Policy with revisions and recommends submittal for consideration to the City Council. ATTACHMENTS: Elk River Municipal Utilities Street Light Payment Policy -dated July 16, 2007 Proposed Street Light Installation and Maintenance Policy Revisions -dated October 11, 2011