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Electric Safety Code and the National Electric Code. Generally speaking, this is an opportunity for <br />ERMU to help create efficiencies and provide better value to our residents, businesses, and customers. <br />There axe a number of issues to coordinate with the city. The street lights installed on Highway 10 are <br />currently under a maintenance contract with a third party. Elk River Municipal Utilities would not be able <br />to take over maintenance of these lights until that contract is done or terminated. Also, there are street <br />lights located outside of Elk River Municipal Utilities' electric service territory, yet located within the <br />corporate boundaries of the City of Elk River. Elk River Municipal Utilities would not be able to take <br />over the maintenance of these lights until that service territory has been acquired. (The acquisition of <br />service territory within the corporate boundaries of a city is within the legal right of the municipal utilities <br />since 1974.) Also, there may be street lights that are recorded as assets of the City. These would need to <br />be transferred to the Utilities. <br />FINANCIAL IMPACT <br />The City has recently added $10,000 for street light replacement or maintenance to the 2012 City budget. <br />This would be a reoccurring yearly budget item. By shifting these responsibilities and associated costs to <br />Elk River Municipal Utilities, this would eliminate these reoccurring costs from the City budget. <br />ATTACHMENTS <br />• Elk River Municipal Utilities Street Light Payment Policy -dated July 16, 2007 <br />• Memorandum of Understanding Regarding Street Light Installation and Maintenance <br />Between Elk River Municipal Utilities and the City of Elk River, Minnesota -dated January <br />1, 2012 <br />Action Motion by Second by Vote <br />FOllow Up <br />N:\Public Bodies\City Council\Council RCA\Agenda Packet\11-21-2011\2011-11-21 - ERMU -City Council Action Requested Memo -Street <br />Lighting MOU.docx <br />