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5.1. ERMUSR 12-13-2016 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E.—General Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: December 13, 2016 5.1 SUBJECT: Otsego Street Lighting DISCUSSION: Staff has been contacted by Hakanson Anderson, the City of Otsego's engineering firm, to discuss street lighting in Otsego within the ERMU's electric service territory. The City of Otsego would like ERMU to take over all of the Otsego street lighting within the ERMU electric service territory. The City of Otsego owns many of their street lights. These lights are "behind the meter"meaning they are after the point of sale with ERMU. These lights are maintained by the City of Otsego through their contractors and/or employees. This would include street light replacement due to age, damaged by a vehicle, or storm damage. The City of Otsego has accounts with ERMU for these electric services"behind the meter" and they receive a monthly bill for electric usage per the established ERMU rates. In addition to these"behind the meter" street lights that the City of Otsego owns within ERMU's electric service territory, the City of Otsego also contracts with ERMU for security lights. These security lights are owned by ERMU. Per the ERMU rates for security lights, these lights do not have a meter and the City of Otsego does not pay for the electricity they use. Rather,these lights based on the size of their lamp have a monthly fixed fee to cover the electricity, maintenance, and eventual replacement. The City of Otsego would like to explore options with ERMU to transition/transfer all of the "behind the meter" street lights they own within ERMU electric service territory to a similar arrangement as they have with the security lights. The reasons for this are: maintenance, forever changing products, and lack of city staff expertise to effectively manage their street lights. Before committing significant time researching options, ERMU staff is looking to discuss the topic with the Commission. ACTION REQUESTED: No action required at this time. POWERE0 01' Page l of 1 NATURE ReliableoPublic Provider P OWERED To S ERV E 97