2.7 ERMUSR 12-12-2017 - Laserfiche WebLink

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ELECTRIC INFRASTRUCTURE AGREEMENT THIS ELECTRIC INFRASTRUCTURE AGREEMENT ("Agreement") effective this day of , 20 , between Elk River Municipal Utilities, a Minnesota municipal utility, with principal offices located at 13069 Orono Parkway, Elk River, Minnesota 55330 ("ERMU"), and the City of Otsego, a Minnesota municipal corporation, with its principal offices located at 13400 90th Street NE, Otsego, Minnesota 55230 ("City"). BACKGROUND ERMU provides electric service to a portion of City. To provide this service, ERMU owns and operates a 2.5-mile-long overhead electric distribution feeder (the "Feeder") that runs from the ERMU Otsego substation on Wright County Road 39 ("CSAH 39") west to the Mississippi Cove residential subdivision. The Feeder is located within the right-of-way of CSAH 39. City anticipates that CSAH 39 will be widened and upgraded by Wright County in the future. This project will require the acquisition of additional right-of-way for CSAH 39 and will involve significant disruption for users of and property owners along CSAH 39. City has adopted an ordinance that would require the CSAH 39 Feeder to be relocated from overhead to underground in the year 2018. Moving the CSAH 39 Feeder underground prior to the expansion of the CSAH 39 right-of-way would require ERMU to acquire additional right-of-way and to make assumptions regarding the final location of the right-of-way for CSAH 39. In addition, an ERMU project to underground the CSAH 39 Feeder would cause significant disruption for users of and property owners along CSAH 39. For these reasons, City and ERMU have agreed that it would be more efficient, more cost-effective and less disruptive to their joint taxpayers and rate payers, and the users of and property owners along CSAH 39, if ERMU's project to underground the Feeder is undertaken in coordination with the widening and upgrading of CSAH 39 by Wright County. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, it is hereby agreed as follows: ARTICLE 1 AGREEMENT Section 1.1. City will take such action as it deems appropriate, including an ordinance amendment if necessary, to delay the requirement that ERMU relocate the CSAH 39 Feeder from overhead to underground until such time as Wright County has acquired additional right-of- way for CSAH 39 and has undertaken a project to widen and improve CSAH 39. Section 1.2. ERMU will coordinate with City and Wright County to relocate the CSAH 39 Feeder from overhead to underground within an expanded right-of-way for CSAH 39 in connection with Wright County's project to widen CSAH 39. ERMU will bear the cost of relocating the overhead lines underground, provided that Wright County or City provides the right-of-way necessary to underground the lines. 55