5.2. ERMUSR 10-15-2003 i
Elk River ^--
Municipal Utilities
322 King Avenue phone: 763.441.2020
Elk River,MN 55330 Fax:763.441.8099
September 24, 2003
To: ]lk River Municipal Utilities Commission
John Dietz
Jerry Takle
James Tralle
From: Bryan C. Adams
Subject: Street Light Maintenance
At the September 9, 2003, Elk River Municipal Utilities meeting,the issue of street light
maintenance was discussed. Attached is my September 3, 2003, memo for your
reference. Staff was asked to survey other communities. Attached is the results of that
survey. Below is a summary of this survey.
RESIDENTIAL SEMAPHORE MNDOT
Maintenance Energy Maintenance Energy Maintenance Energy
Utility City Utility City Utility Non-Util. Utility Non-Util. Utility Non-Util. Utility Non-Util.
8 1 8 1 0 9 1 8 3 5 3 5
Flk River I I ? ? 1 ? ? 1
If a community has a municipal utility, generally the municipal utility maintains the
residential lights and pays for the energy cost. This is usually considered part of the
payment in lieu of tax contribution to the city. For communities that are served by IOU's
or Co-op's, the community generally pays the IOU/Co-op to have the residential light
energized and maintained.
Most often, the semaphore's are maintained by MNDOT/County, along with paying for
energy costs. Generally the municipal electric utility replaces bulbs. In IOU/Co-op
communities, MNDOT/County/City pays for the bulb replacement service.
All of the communities surveyed struggle with who maintains MNDOT lighting on
major roads. There is often confusion at the local level about who does what
maintenance. MNDOT agreements in the same community may differ depending on date
of agreement and location. MNDOT is obviously trying to shift the responsibilities to
others. It appears whoever is the better negotiator does not maintain lights or pay for the
energy. The municipal utilities typically do not have the equipment to maintain these
lights except for bulb replacement, and put them back up if they are knocked down. In
the case of IOU/Co-op communities, MNDOT/County/City either does it themselves or
pays to have it done.
Elk River Municipal Utilities pays the energy cost for residential street lights,
semaphores and MNDOT/County lights as part of our payment in lieu of taxes. Most
municipal electric utilities bill for the semaphore and MNDOT lighting energy. The issue
from my perspective is two fold. The first is, should MNDOT lights be funded with tax
dollars because everybody benefits not just the municipal electric customers, or with
electric revenues because the electric utility supplies energy to these lights. The second
is, what is the appropriate level of municipal utility payment in lieu of taxes to the city.
Elk River Municipal Utilities currently contributes approximately 5.5% of gross Elk
River electric sales. In 2004, our annual contribution is projected to be 5.84%of gross
Elk River electric sales or$641,760. The national average for payment in lieu of taxes is
approximately 5.8%
STREET LIGHT MAINTENANCE SURVEY
Anoka Residential Street Lights—Total maintenance and energy costs by
Utility.
Decorative Lights—City pays utility for energy. Utility receives
$.204/Kwh to pay for maintenance.
MNDOT Lights—Utility changes bulbs and photo eye. MNDOT
does all other maintenance and pays for energy.
Semaphores—Utility changes bulbs only. Energy is paid by either
MNDOT or Utility—depending on agreement.
No. St. Paul Residential Street Lights—City previously paid utility $70,000/yr.
to do maintenance and energy costs. Last year changed—
all residences and businesses pay $1.00/month extra to pay
for light maintenance.
MNDOT Lights—MNDOT does maintenance and pays for energy
costs.
Semaphores—Utility changes bulbs and pays for energy only
MNDOT does other maintenance.
Shakopee Residential Street Lights—Utility maintains lights and pays for
energy.
MNDOT Lights—MNDOT does all maintenance and pays for
energy.
Semaphores—All maintenance by MNDOT. City pays utility for
energy.
Willmar Residential Street Lights—Total maintenance and energy by
Utility.
MNDOT Lights—Utility maintains light and energy inside city.
MNDOT does maintenance outside city and pays for
energy in Willmar Service Territory.
Semaphores—Utility changes lights only. MNDOT pays for
energy and maintains.
Hutchinson Residential Street Lights— City did pay utilities to do maintenance
and energy. This year utility maintains lights and energy.
MNDOT Lights—just changed, if city owned, utility now
maintains and pays for energy.
Semaphores—Utility changes lights only. MNDOT maintains and
pays energy.
Connexus Totally bill for all maintenance and energy. Energy may be billed
or included in lighting rate.
Austin Residential Street Lights—All on utility poles maintained by utility
with energy.
Decorative Lights—City pays for all costs except bulbs and photo
eye.
MNDOT Lights—Utility maintains bulb and photo eye only.
MNDOT maintains and pays for energy.
Semaphores—Utility maintains and city reimburses costs. City
pays utility for energy.
Hibbing Residential Street Lights—Utility maintains lights with energy.
MNDOT Lights—No major lighting on highway that city or utility
is involved with.
Semaphores—Utility replaces bulbs. MNDOT maintains and pays
for energy.
Rochester Residential Street Lights—City pays all cost of maintenance and
energy to utility.
MNDOT Lights—Previously, MNDOT and Utility maintain and
paid for energy depending upon location and agreement.
Contract were recently renegotiated where MNDOT
maintains lights and pays for energy.
Semaphores—Maintenance by Public Works. Public Works or
MNDOT pays for energy.
Chaska Residential Street Lights—Utility maintains lights and city pays
for energy.
MNDOT Lights—All maintenance by utility. City pays for
energy.
Semaphores—Utility replaces bulbs only, MNDOT/County
maintains lights. MNDOT/County pays for energy.
Summary
RESIDENTIAL SEMAPHORE MNDOT
Maintenance Energy Maintenance Energy Maintenance Energy
Utility City Utility City Utility Non-Util. Utility Non-Util. Utility Non-Util. Utility Non-Util.
8 I 8 1 0 9 1 8 3 5 3 5
Elk River I I ? ? 1 ? ? 1