2.7 ERMUSR 12-12-2017 - Laserfiche WebLink

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ASSET TRANSFER AGREEMENT THIS ASSET TRANSFER 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 the City, including three (3) commercial developments known as Otsego Waterfront, Otsego Waterfront East and Great River Center (collectively referred to hereafter as the "Transfer Areas"). Within the Transfer Areas there are currently one hundred one (101) street lights which are owned and maintained by the City and seven(7) missing street lights. ERMU currently owns, services and maintains seventy-eight (78) street lights in the City, as well as over one thousand three hundred (1,300) in the City of Elk River. The City and ERMU have agreed that it would be more efficient and cost effective for their joint taxpayers/rate payers within the Transfer Areas if ERMU took ownership of the existing 101 street lights and the missing 7 street lights in these areas, and took responsibility going forward for providing street lighting in the Transfer Areas, including replacing and supplementing, as necessary, the existing 101 street lights and servicing and maintaining these street lights and all additional and replacement street lights in the Transfer Areas. 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 ASSET TRANSFER Section 1.1. Attached to this Agreement as Exhibits A, B, C and D, are aerial photos of the Transfer Areas showing the existing street lights and related infrastructure within the Transfer Areas. City hereby transfers to ERMU, and ERMU hereby accepts, as of the effective date of this Agreement, ownership of the 101 existing fixtures and 7 bases for missing fixtures shown in Exhibits A-D, along with all underground wiring, control cabinets and all electrical infrastructure related to these street lights. Section 1.2. ERMU hereby accepts ownership of the street lights and related infrastructure shown on Exhibits A-D, and agrees to service, maintain, repair and replace the street lights and related infrastructure, as determined necessary by ERMU, beginning on the effective date of this Agreement.