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~~~ <br />. ~, <br />ever <br />MEMORANDUM <br />TO: Bryan Adams, <br />FROM: Lori Johnson, City Administrator <br />DATE: May 7, 2007 <br />SUBJECT: Payment of decorative street costs in stree# reconstruction & <br />improvement projects <br />As part of the street rehabilitation and improvement projects the city has been <br />undertaking in the past few years, new street lights have been installed. In some areas, <br />the old poles have been replaced with decoratitfe street lights; in other areas, there were <br />no existing lights so new decorative street lights were installed. This process will <br />continue in all future projects. To date, we've not had a fornial understanding of how the <br />cost of the street lights would be paid. <br />You did not feel it was appm}~riate thatthe electric fund pay for all of the new lights and <br />projects, along tivith all the electricity to powerthe light. You stated concern about areas <br />where the electric unlit}' has already paid to install lights that are now being replaced <br />with different poles. Therefore, the~,electric fund would be paying twice to install lights <br />in the sarnearea. You did agree, howeti~er, that it is the electric utility's responsibility to <br />install neri7i~hts and, in fact, would install those under your street lighting policy if they <br />were requested. <br />We agreed that a more fait way to distribute the cost of lights in the rehabilitation and <br />improvement projects is to have the city pay the cost for replacing existing poles and the <br />utilities provide the labor to install the poles. In areas where there are no existing lights, <br />the electric utility will be responsible for paying for the lights and installing them. <br />ERMU will invoice the city for the replaced street light materials cost, providing <br />documentation of the actual costs along with the invoice. The city will provide <br />information to the utilities as soon as a project is being considered so that the estimated <br />cost may included in the electric fund budget. <br />Please review this information and give me your thoughts on the cost sharing proposal. <br />Of course, this proposal is subject to approval by the governing bodies. After you and I <br />have a chance to discuss this again, we can forward it to them for their consideration. <br />S:\Admin\Lon\2007\BAdams street light poles 050707.doc <br />