5.2. ERMUSR 01-13-2004 J
Elk River V
Municipal Utilities
322 King Avenue phone: 763.441.2020
Elk River,MN 55330 Fax:763.441.8099
December 31, 2003
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Takle
James Tralle
From: Bryan Adams
Subject: Street Light & Signal Light Agreements
This issue was deferred at our December 9, 2003 commission meeting to the January
meeting. Attached is my December 3, 2003 memo addressing the Street Light & Signal
Light Agreement. Also enclosed are the following two pieces of information that impart
this issue.
a) Public Power Weekly December 15, 2003 issue titled, "Ruling Requires
Washington Cities to Pay for Streetlights." Other communities besides
Elk River are wrestling with this issue.
b) July 28, 1987 Elk River Municipal Utilities Commission minutes item 10—
Street light donation to the City was raised from $25,000 to $30,000. To
the best of my knowledge the contribution has not been revised since. For
whatever reason, this cap has not been followed over the years. This
commission should revise this cap and adopt our current procedure of donating
street light and signal light energy costs that the Elk River Municipal Utilities
serve. We are currently verifying we can donate these KWh without violating
state statute.
John Dietz is suggesting we have a joint City Council/Utility Commission meeting to
discuss and resolve this issue. We have not had a joint meeting for a number of years.
Elk River
Municipal Utilities
322 King Avenue phone: 763.441.2020
Elk River,MN 55330 Fax:763.441.8099
December 3. 2003
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Takle
James Tralle
From: Bryan Adams
Subject: Signal Light & Highway Light Agreement
This memo continues our previous commission discussion concerning responsibility for
doing signal light and highway light maintenance. As you may recall, this discussion
started in September during the budgeting process about who's responsibility is it to paint
or replace the highway and signal light poles as they require work. John Dietz asked
Terry Maurer to provide copies of the MNDOT signal light and highway light
agreements.
Attached is the following information for your review.
a.) Terry Maurer's correspondence dated November 7, 2003 addressing the
agreements.
b.) Typical traffic control maintenance language (paragraph 8 & 9).
c.) Typical highway lighting maintenance language (article IV Section A & B).
Even though the city is signatory to these agreements, does the city's responsibility
transfer to the utility without consent or authorization of the utility commission?
Howard R. Green Company
p Y
November 7, 2003
File: 230000M-0325
Council Member John Dietz
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
RE: MNDOT LIGHTING AND SIGNAL AGREEMENTS
Dear Council Member Dietz:
As you requested, I have pulled out and copied the agreement between MnDOT and the City of Elk
River for the fencing and lighting project along Trunk Highway (TH) 169 and the four latest signal
agreements. These would cover the intersections of TH 10 and Waco Street; TH 10 and Joplin
Street; TH 169 and 197th Avenue; and TH 169 and 193w Avenue/Jackson Road.
I have highlighted the sections that pertain to maintenance required by the City. In the fencing and
lighting agreement for TH 169, this portion of the agreement is located on pages 10 and 11.
Generally, it states that the City is responsible for maintaining the fence and the right-of-way area
located outside of the fenced area. With regard to the lighting standards, the City is responsible for
electrical energy and all maintenance including, but not limited to, the re-installation of knocked down
poles, wiring repair, and replacement of luminaires.
All four of the signal agreements generally state the same thing relative to the City's responsibility.
They all state that the City will at its own expense maintain the luminaires and all of its components,
including replacing the luminaire when necessary; re-tamping of the traffic signal; advance warning
flasher and street lights; and finally, clean and paint the signal, advance warning flasher, cabinet, and
luminaire mass arm extensions. MnDOT is responsible for all other maintenance and operation costs.
I could find nowhere in the signal agreement where it states who will determine when a signal needs
painting.
I did not look for any other signal agreements, because I believe they would all state approximately
the same thing as the four I have provided. I looked briefly for but could not locate a lighting
agreement for the light standards along TH 10. I would expect that the language in the agreement
relative to the City's responsibilities would be very similar to the TH 169 agreement. If you would like,
I can pursue the TH 10 lighting agreement with MnDOT to see what they have in their files.
Lir-110703-Dietzdoc
1326 Energy Park Drive • St. Paul, MN 55108 • 651/644-4389 fax 651/644-9446 toll free 888/368-4389
Council Member Dietz
November 7, 2003
Page Two
If you have any questions or would like further investigation into these issues, please call.
Sincerely,
Howard R. Green Company
Terry J. Maurer, P.E.
TJM:sw
Cc: Pat Klaers, City Administrator
Bryan Adams, General Manager
`r"°'°3-° do` Howard R.Green Company
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\ 76543
cost of the State participation covered under this Agreement exceeds
the amount of funds advanced by the State, the State shall promptly
pay the difference to the City without interest . If the final cost
of the State participation covered under this Agreement is less than
the amount of funds advanced by the State, the City shall promptly
return the balance to the State without interest . Procedures
relevant to preparation of the Final SCHEDULE "I" and final payment
of the State participation cost covered under this Agreement are
detailed in the Payment Processing Package, which the State shall
furnish the City.
Pursuant to Minnesota Statutes Section 15 . 415 (1996) , the City waives
claim for any amounts less than $2 . 00 over the amount of State funds
previously advanced to the City, and the State waives claim for the
return of any amounts less than $2 . 00 of those funds advanced by the
State .
kRTICLE IV - GENERAL PROVISIONS
Section A. Maintenance by the City
Upon satisfactory completion of the fencing construction to be
performed within the corporate City limits under the construction
contract , the City shall provide for the proper maintenance of the
fencing and all of the facilities a part thereof, without cost or
expense to the State, except for the fencing at the park-and-ride
lot , which shall be maintained by the State.
Upon satisfactory completion of the fencing construction to be
performed within the corporate City limits under the construction
contract, the City shall provide for the proper maintenance of that
portion of the State' s trunk highway right-of-way which is outside of
the new fencing, without cost or expense to the State . Maintenance
shall include, but not be limited to, grass mowing, weed control,
litter and debris removal and any other maintenance activities
necessary to perpetuate the State' s trunk highway right-of-way in a
safe and aesthetically pleasing condition.
10
\ \ 76543
Upon satisfactory completion of the lighting facilities construction
to be performed within the corporate City limits under the
construction contract, the City shall provide for the proper
maintenance of and keep in repair those facilities, without cost or
expense to the State. Maintenance shall include, but not be limited
to, the reinstallation of knocked-down poles, repair of wiring and
replacement of luminaries . The City shall also provide the necessary
electrical energy for their operation, without cost or expense to the
State .
Section B. Examination of Books, Records. Etc.
As provided by Minnesota Statutes Section 16B. 06, subdivision 4
(1996) , the books, records, documents, and accounting procedures and
practices of the State and the City relevant to this Agreement are
subject to examination by the State and the City, and either the
legislative auditor or the State auditor as appropriate.
Section C. Claims
All employees of the City and all other persons employed by the City
in the performance of contract construction, construction engineering
and/or maintenance covered under this Agreement shall not be
considered employees of the State . All claims that arise under the
Worker' s Compensation Act of the State of Minnesota on behalf of the
employees while so engaged and all claims made by any third parties
as a consequence of any act or omission on the part of the employees
while so engaged on contract construction, construction engineering
•
and/or maintenance covered under this Agreement shall in no way be
the obligation or responsibility of the State .
Section D. Nondiscrimination
The provisions of Minnesota Statutes Section 181 . 59 (1996) and of any
applicable law relating to civil rights and discrimination shall be
considered part of this Agreement as if fully set forth herein.
11
,NK9 Ct. Cga.cc.c_ Co(N eo\
8 . The City shall provide an adequate electrical
power supply to the service pad or pole, and upon completion of
said traffic control signal with street lights and signal ahead
flashers installation shall provide necessary electrical power
for its operation at the cost and expense of the City.
9 . Upon completion of the work contemplated in
Paragraph 3 hereof, it shall be the City' s responsibility, at its
cost and expense, to: (1) maintain the luminaires and all its
components, including replacement of the luminaire if necessary;
(2) relamp the traffic control signal, signal ahead flashers and
street lights; and (3) clean and paint the traffic control
signal, cabinet, luminaire mast arm extensions and signal ahead
flashers . It shall be the State' s responsibility, at its cost
and expense, to perform all other traffic control signal, signal
ahead flasher and street light maintenance.
10 . Any and all persons engaged in the aforesaid work
to be performed by the State shall not be considered employees of
the City and any and all claims that may or might arise under the
Worker' s Compensation Act of this State on behalf of said
employees while so engaged, and any and all claims made by any
third party as a consequence of any act or omission on the part
of said employees while so engaged on any of the work
contemplated herein shall not be the obligation and
69563
- 4 -
El Public Power Weekly December 15,2003
Ruling requires Washington cities to pay for streetlights
The provision and maintenance of and the streetlight serc ice the vrcc-eked streetlighting into a proprietary func-
treetlights is a governmental,not pro- or the burden that they prod need.-'the Lion, the court said.
prietar ,function and mustbe paid for court said. Also.despite the 2002 law,"the charge
by the city government, not utility The tax was unlawful under the state hr maintaining streetlights is still a tax,
ratepayers, the Washington State Su- constitution, the court said. "For a mu- because shifting the streetlight costs to
preme Court ruled last month. nicipality to exercise the power to tax,it City Light ratepayers is still designed to
Streetlights are "provided for the must have express statutory authority." raise revenue for the general city bud-
welfare of the general public, at the The 2002 law did not transform get." the court said. I
discretion of the city and not individual
ratepayers,"said Justice MaryFairhurst.
The function is governmental and
should be paid for through taxes. An • •
electric utility is a proprietary function
of government because it does"not pro-
3a
vide electricity to a customer that does
not request service."
The decision in Rud Okesan et at v. the _
City of Seattle overturns a 2002 state law sxa^t Dal 1P
allowing municipalities to charge
Kai wit •fi!!t
ratepayers for operation and mainte- IQ s" r11 01$�� _
•
nance of streetlights. net III f" �-With costs around $6 million per tll
year, the average City Light residen- a x " --
-1,r r,. � t
tial customer has been paying about$2 per month for streetlights," said
Tim Ritch, Seattle City Light's acting - - -- s — -
—
.—r -_ ...-
apenntendent. _
Additionally,the courtsaid the charge — "-
imposed on City Light customers is a tax "
and not aregulatoryfee since the money -
" -
raisedwasussedto cover a governmental = -y -- _
function and not a regulatory one. `'� . 'tit's_- v-t
"There was no relationship between the Seattle City Light customers will no longer be charged for streetlight service and maintenance
fee imposed on City Light customers thanks to a Washington State Supreme Court ruling. Photo courtesy Seattle•s Conveeron and visitors Bureau.
PUBLIC POWER WEE�' Periodicals
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BRYAN ADAMS
GENERAL MANAGER
MUNICIPAL UTILITIES
322 KING AVE
ELK RIVER MN 55330-2596
NEWSPAPER
USPS 028-120
July 28 , 1987
Tuesday 7 : 00 P .M.
Present Were: Douglas Dill Vice Chairman
James Tralle Trustee
Bill Birrenkott General Manager
Absent Was : Henry Duitsman President
Others Present: Estelle Gunkel Mayor
Terry Mauer City Engineer
Bob McCartney Water Foreman
1) The meeting was called to order by Vice Chairman Dill at 7 : 05
P.M.
2) The minutes of the June 9th meeting were presented . Motion by
Mr. Tralle seconded by Mr. Dill to approve the minutes as
presented .
3) Terry Mauer, City Engineer, presented to the Commission the
proposed Jackson Street project . He stated that the State is
funding the reconstruction of the road and he is proposing that a
new water main be installed in accordance with the Comprehensive
Water Plan as long as others will pay for the surface
conditioning. He stated that it was felt that very little of the
associated costs could be assessable because the affected
assessable area already has fairly good water service. The City
Council , at a meeting last evening , approved a resolution asking
the Utilities Commission to approve the expenditure of 75% of the
project cost . It was estimated that the total project cost would
be $191 ,400 with the Utilities contribution to be $143 , 550 .
Motion by Mr . Tralle seconded by Mr . Dill to fund 75% of Jackson
Street Project with funding resources to be determined at the
next commission meeting . Motion carried .
4 ) The Main Street Project was discussed and the City Engineer
stated that it may not be necessary to replace the existing main .
It was stated, however , that the lead gooseneck taps should be
replaced . It was noted that the taps are the property of the
customer and these costs should be paid for by them. However, it
was noted that some hydrant work will have to be done and some
16" main and some 12" main will have to be installed. It was
projected that this work will be bid in conjunction with the
Jackson Street Project . Terry Stated that he will try to have
the costs available by the next commission meeting .
5) The Water Main in the area of McChesney/Elk River Industrial Park
was discussed with the City Engineer stating that he would like
to issue a change order in the existing contract to install 12"
water main underneath the railroad track. He estimated the cost
to be approximately $30 ,000. Motion by Mr . Dill seconded by Mr .
Tralle to authorize the City Engineer to proceed with the
proposed change order and return to the commission with the
costs . Motion carried .
6) The next Commission Meeting was set for Tuesday, August 18 .
7 ) The new energy management rate was discussed and a recommendation
was presented by the General Manager . Motion by Mr . Tralle
seconded by Mr. Dill to sell energy to the customers under the
Off Peak conditions as specified by the General Manager at 3 . 00
per kilowatt hour. Motion carried.
8) The Comparable Worth law was discussed and a proposal for
benchmark values was presented by the General Manager . Motion by
Mr . Tralle seconded by Mr . Dill to accept the benchmark scores
for evaluation purposes. Motion carried .
9) The Commissioners reviewed the resumes for the office manager
position and selected the top 4 candidates . The General Manager
was instructed to interview these four candidates and proceed with
the hiring process. The commission established a salary range for
the hiring wage.
LV,'i.ii jblv.d MLLiiNU - 1.v IIL ♦ „ CU
July 28 , 1987
10) Motion by Mr. Tralle seconded by Mr . Dill to raise the Street
Light donation amount to the City from $25 ,000 per year to
$30,000 per year. Motion carried .
11 ) A proposal for another step in the water rates was presented by
the General Manager which would have lowered the rates for the
large volume users . No action was taken .
12) The General Manager presented an analysis of the capacity
requirements of our contract with UPA and expressed concern of
our need to consider additional capacity. No action was taken .
13) The financial statements and budget reports were reviewed and
discussed. Also reviewed were all of the outage reports for the
month.
14 ) A letter from Joe Sloan and AEC was presented in which he objects
to our latest territorial acquisition attempt .
15) Motion by Mr . Tralle seconded by Mr . Dill to adjourn. Carried .
Meeting adjourned at 9:45 P.M.
Bill Birre
General Manager
THE FOLLOWING BILLS WERE APPROVED:
Blue Cross & Blue Shield Util Share - Group Health 4 , 039 . 38
International Business Machine Maintenance Service 111 . 00
A.N. Johnson Construction Co. Haul , Fill & Level 4 , 588 . 64
MII Life, Inc. Group Life Payable 43 . 80
Minnesota Pollution Control Hazardous Waste Fee 100 . 42
North Central Public Service Gas - Municipal Power 163.27
PERA - Life PERA Life - Payable 63 . 00
United Power Association Power & Energy Bill - May 183, 455 . 52
White - Westinghouse Ind. Room Air-conditioner 343 . 00
Z ' s Upholstery 1 rebuilt seat 132 . 50
Anoka Refrigeration Repair Ice Machine 85 . 00
AT & T Communications Long Distance Charges 23 .16
AT & T Information Systems Maint Agreement - Merlin 12 .00
Beaudry Oil Co. Gas - Vehicles 1 , 017 . 78
William M Birrenkott Meals & Lodging - MMUA 337. 21
Boelter ' s Auto Repair Oil - 2 Cases 36.00
Border States Electric Wire 5 , 258 .60
Burmeister Electric Co. 4-Point Junction 5 ,749 .53
City of Elk River Sewer Payable - June 23 , 819 . 71
Coast to Coast Misc Expense 27 . 34
Commissioner of Revenue Sales & Use Tax - 1/2 Est 7 , 872. 12
Computer Satisfaction Courtesy Notice 447. 90
Continental Safety Equip, Inc Medicated Ointment 68 . 05
Cotter Charge Card Shovel , Eyes 22. 78
Dehn ' s Four Seasons Jonsrude Chain Saw 250 . 00
Ed Clinkseales 1/2 Cost Sewer Clean Out 45.03
Elk River Champion Auto Battery 90 . 88
Elk River Hardware Co. Weed Trimmer Cord, Range 55 . 59
Elk River Municipal Utilities Util - Well & Pumps 2 , 759. 81
Elk River Printing Inventory Books 153.75
Elk River Star News Ad - Premium List 131 . 16
Feed-Rite Controls, Inc Sample - Potable 10 . 00
First Nat ' l Bank of Elk River Water Bond & Insurance 17 , 170 . 00
G & K Services Textile Leasing Mats, Mop, Towels 93 . 50
Graybar Electric Wire, Clamp Splice 7 , 248 . 84
Houle Oil Co, Inc Oil & Barrel Deposit 345 .27
Industrial Hardfacing , Ind Post Pounder - Labor 35 . 00
International Business Machine Annual Maint SChg - Display 285 .00
William B Lewis Office Cleaning - July 80 .00
Minnesota Benefit Ass ' n Employees Ins Payable 14. 75
NAPA of Elk River Oil Filters 167. 36
Neutron Industries Deodorizing Kit 19. 95
Northland Electric Wire 549. 40
Northwestern Bell Telephone Office & Plant Phones 414 . 18