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HANDOUTS 04-20-20222022 Council and Staff Retreat April 20,2022 Agenda 1) Opening — Reflection on accomplishments 2) Review Values, Vision & iMission Statement 2021 Goals 3) ARPA Funds 4) Break 5) Business Registration Program 6) City Programs/Downtown Policy 7) Budget kickoff 8) Tour Fire Station #2 improvements 9) Dinner Break 10) Police Department Review 11) Goal Setting 12) Wrap-up/Adjournment Elk RiverValue Statements ■ Welcome a revolutionary spirit that fosters a culture of exceptional service and community participation. ■ Nurture resourcefulness to leverage strengths and drive community prosperity. ■ Cultivate/Revolutionize an environment to encourage and inspire diverse and meaningful engagement. The Elk RiverVision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Elk River Municipal Mission Mission Components ■ Opportunity to live, work, and play ■ Responsibly grow ■ Meet changing needs - Agile ■ Timeless ■ Ethical, efficient and responsible ■ Work with citizens to achieve goals ■ Responsible for every dollar —good stewards ■ Help, not hinder citizen quality of life ■ Reflect the culture of citizens and what is important to majority The Elk River Mission Where council and staff work with citizens to develop a sustainable and prosperous community for all to live, work and play; and to appropriatelygoVern in an ever changing environment. Goals Short-term (2019) ■ Next budget cycle ■ Outside of core services ■ Core service level enhancements Goals Short-term (2021-22) ■ Commercial Development ■ HRA Main/Gates Project ■ Joplin ■ Market EDA TH10 ■ Budget and sinking fund for building repair ■ Transition PW Facility Bond to General Levy ■ Move GRE Fund Balance to Building Fund ■ Parks &Recreation Capital Plan —Funding ■ LOST -Funded Projects ■ Field/facility user fee shift • • City of Elk -�-� Raver es policy Goals Short-term (2021-22) ■ Zoning & Acquisition of "challenged" properties policy ■ Complete LJWT (playground, disc golf, trail, lighting ■ F&T Center Branding ■ Downtown Traffic, Parking and PedX Studies ■ Rivers Edge Dock Goals Mid-term (2023-25) ■ Exceeds election term ■ Commits current elective body ■ Reflects vision, values, mission Goals Mid-term (2023-25) ■ Budget Plan —Post Waste Management ■ Acquire Business Park land ■ Assist with private development as needed ■ Develop means for park capital needs ■ Train maintenance funding plan ■ Field/Facility user fees ■ Commercial development ■ HRA Main/Gates ■ Ebert Joplin/Business Ave Project ■ Market EDA TH10 Property Goals Mid-term (2023-25) ■ Understand Obligations of Capped landfill ■ Bubble over football practice field ■ Parks & Rec App — directions ad amenities, ■ Complete athletic field needs analysis park features ■ (Short or Mid) Update branding/colors to match ERHS red ■ YAC and Oak Knoll Master Plans ■ Improve Broadband Connectivity Goals Long-term (2028 -beyond) ■ Legacy driven ■ Beyond election cycle ■ May require interim steps for current members Goals Long-term (2028) ■ More retail development in western ER ■ What does redevelopment look like when TH10 is a freeway? ■ Riverwalk from Orono Park to City of Ramsey ■ Feasibility of moving Train station downtown ■ Outdoor swimming pool ■ Transportation development funding Goals Long-term (2028) ■ Urban Service Area expansion ■ C/I development ■ Analysis of ERL when 2030 closure occurs ■ Development of Specht Property ■ Trail Connections ■ Ped Trail connection downtown over RR and TH 10 ti • 1 business ftegistration Certificate (BRC) Program fit x ' Atii�, vl,;� U]JU, low N 'P.. AL 01111111 Ob 1 - 4- r s, ,._ • ' it F City of Elk - - River - It is Not a Business Permit or License Required for businesses conducting the following activities: ■ Open Burning ■ Fireworks (Retail/Temp. Sales or Pyrotechnic Display) ■ Kennels (Commercial or Private) ■ Massage Therapists ■ Mobile Food Units ■ Peddler, Solicitor, Transient Merchant ■ Special Event (w/o alcohol) ■ Tobacco All have an associated fee. Business List Results 2020 EDA Business List Sherburne County Tax List DEED of MN (Zip) Business List 2022 Greater MSP Partnership List 758 entries 192 entries 81 entries 1856 entries The vast disparity in business counts prompted us to look into a Business Registration Program like other communities. Purpose/Benefits of BRC ■ To provide information to the city when a new business moves into town or relocates ■ Allows us to get a better handle on the types of businesses coming to town prior to them moving; able to have a dialogue early in the process (esp. MN Fire Rules Chp. 7510) ■ Gives the Fire, Building, and Planning staff the ability to review a business before they move in and walk them through any city processes that may be necessary 0 Helps us better communicate with our business community Purpose/Benefits (Con't) ■ Provides emergency contacts, key holders, alarm system info., and hazardous materials which should be on file with FD & PD ■ Provides insight on the local business climate ■ Includes Change of Occupancy records for businesses undergoing improvements, change in ownership, change in business type, etc. ■ The desired goal is to have all businesses registered within the City. Once a BRC is filed, per the owner's permission, the business could be listed on the City's Webpage under business listings, which is something new to promote local businesses. Proposed Procedure ■ City Webpage notice w/online application and code resources ■ Registration required prior to the business opening ■ Review application to ensure that City, MN State Building and Fire codes are followed ■ Upon approval, a BRC is issued to the business; they may then occupy their space and begin operations ■ annual registration (new or renewal) Internal Steps ✓ Draft amendments to Chp. 38-31 ARTICLE II. Business Licenses and Business Permits ✓ Create Business Registration Certificate application ✓ Draft Program announcement for City Website ■ Determine data management system; upload mailing list ■ Present to City Council CityWebpage (Intro, Purpose &Process) Business Registration Certificate The city recently implemented a Business Registration Certificate (BRC) Program. The program includes all businesses located and based in the City of Elk River. The BRC helps us better communicate with our business community and gain insight on the local business climate. The information will also assist the City's Police and Fire Services in contacting the local owner and/or manager of a business in case of an emergency. Etc. Online Registration Quick Links: ■ FAQ's ■ Business Registration Certificate - Application ■ Ord. Chp. 38 Licenses & Business Regulations Sec. 38-31 ■ MN State Building & Fire Code Sections 1300 & 102 Staff does not propose a charge to businesses for this program. 2021 Statistics 2020 2021 YTD% Part 1 Crimes Aggravated Assault 20 19 -5.00% Burglary 44 30 -31.82% Arsmr 0 0 0,00"/b Criminal S—I Condncr 16 17 6.25% Robbery 1 0 -100.00% Theft 306 234 -23.53% Vchide-11ieft/Tlre-ft Related 125 131 4.80% Total Part l Crimcs 512 431 -15.82% Part II Crimes Otkr Assaults 82 113 37.804'a Forgery 49 22 -55,10',5, Fraud 159 190 19.50% Vandalism 114 109 -4.39% Weapons 56 37 -33.93-. Sex Offenses 23 37 60.87% Narcotics 296 402 35.81% DWI/Traffc 92 297 222.83% Liyewr Laws 16 _3 43.75p/ Disordtrdy 208 218 4.Sl"' Odic 297 333 16.03% Total Part II Crimes 1,382 1,781 28.87% Accidents PDMVA 398 404 1.51% PIMVA 41 38 -7.32% Fatal 1 0 -100.00a'. Pcdcsrrian 3 1 -66.679a Bxyck 4 5 25.00% Total Accidents 447 448 0.22% Citations/Warnine Traffic Citations 1,570 2,339 48.98% Traffic Written Warnings 5 11 120.00% Traffic Verbal Warnings 3,071 4,227 37,64% Parking Citations 5 169 -3.4P° Parking Warnings 173 131 -24.28% TotalICR's 24,083 25,449 5.67% 30,000 25,000 20,000 15,000 10,000 Calls For Service Patrol Officers Calls For Service 27,061 26,329 26209 .' 25449 24,728 4 24083 22,231 21,751 21,930 21,584 d 20,707 20,676 20,451 18,123 17,784 17,144 16,594 / 16,600 23 16,134 Y 22 22 21 21 21 21 21 21 20 20 20 20 20 20 20 19 19J J 18 2003 2004 2005 2006 2007 1 2008 1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 16,594 LI6,134 17,144 16,600 17,784 18,123 1 22,231 21,751 20,707 20,451 20,676 21,584 21,930 24,728 26,329 27,061 26209 24083 25449 18 1 19 19 20 20 20 1 21 21 20 21 21 21 20 20 20 22 22 21 23 Calls For Service 27,500 27,061 26,329 26209 25449 25,000 24,728 24083 22,500 21,930 21,584 20,000 2014 2015 2016 2019 2020 2021 2017 2018 oCalls For Service 21,584 21.9301 24,728 1 26,329 1 27,061 26209 24083 25449 Percentage Increase 0% 1.6% 12.8% 6.5% 2.8% -3.15% -8.11% 5.67% $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Patrol Overtime Use Republican National Convention $135,153 $102,090 $89,399 $87,734 $84,91�] 7 $84,384 $81,49 4 F $55,479 $50,394 $7,143 2003 2004 2005 2006 $100,403 F] $90 $94,005 $89,165 I $75,596 2007 2008 2009 2010 2011 2012 2013 2014 Amount Budgeted . Amount Used $106,817 $81,250 $127,740 2015 2016 2017 2018 2019 2020 2021 ASWEGAN BEBEAU BLACK BOOS CHRISTE CORRIER ERICKSON GARCIA HE LDT KOCH KOPPI MARTIN O'KONEK OLMSCHEID SANDBERG SMITH STUDNISKI SUCHY WELSH W INDELS ZABEE Patrol Hours Used 0 250 500 750 1,000 1,250 1,500 1,750 2;D00 2,250 2,500 ■Regular HoufS ■Pre mium HourS OVacation ■Sick ■Comp Earned OHoliday Bank ■overtime ■Bereavement ■Court Cancellation ■Comp Used ■Comptime Cash out ■Double Time 0 Field Training officer ■Holiday Dulness ■Parental Leave 12 311 91 116 123 171 98 86 43 129 13 58 210 4 16 46 39 80 19 32 32 52 105 19 95 54 48 45 4 73 42 9 23 62 81 59 17 102 150 59 29 3 23 46 1 40 2 30 77 4 21 60 36 33 87 36 33 47 147 107 61 29 77 18 11��_ 2 158 -Mr- 4 24 -.AL. 26 117 �= 8 1 80 11M 6 8 3 69 dMM&_ 70 -_ 3 -.W= 110 �� 2022 Potential Time Off EDLUND 335.2 OLMSCH EI D 332.5 ERICKSON 1332.5 H ELDT 1 299.7 GARCIA 287.9 BOOS 287 SMITH 285.5 ZABEE 284.5 BEBEAU 283.9 WINDELS 278.6 ASW EGAN 231.7 CORRIER 231 MARTIN 224.3 O'KONEK 219.1 SANDBERG 216.7 KOCH 213.8 CHRISTIE 1211.7 WELSH 1 2O5.5 MICHAUD 189.5 STUDNISKI 182,7 KOPPI 176 Koppi Studniski Michaud Welsh Christie Koch ISandberg O'Konelk I Martin I Corrier I Aswegan I Windels I Bebeau Zabee Smith Boos Garcia Heldt Erickson Olmscheid Edlund 0 Eligible Vacation per year (2022) 88 88 88 88 123.6928 125.8467 115.6926 88 96.3075 88 1 88 1 152 1159.6912 152 144 1195.9997 199.6921 J 171.6914 200 200 199.6921 ❑ Comp Accrual (as of0l/15/2022) 0.000 J1.750 13.500 29.500 0.000 0.000 13.000 43.125 40.000 55.000 55.750 38.625 1 36.250 44.500 53.500 3.000 0.250 40.000 44.500 44.500 47.500 0 Holiday Hours 88 1 88 88 88 88 88 88 88 88 %8 8% 88 88 88 8% 88 88 88 88 88 88 0 Eligible Vacation per year (2022) ❑ Comp Accrual (as of 01/15/2022) ❑ Holiday Hours PIP Retirement Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 Chief Nierenhausen Suchy Heldt Sergeant Block OPErickson Drayna Koch Sergeant Balabon Captain McKernan Q 53 - 55 Years of Age Sergeant Birdsall Sergeant Boos Captain Gacke Sergeant Bebeau Olmscheid Garcia Edlund Firkus Sergeant Windels Smith Ratullo Albert Welsh Michaud Williams Sergeant Zabee Christie Corner Koppi Martin Aswegan Sandberg Studniski O'Konek Retirement Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2D46 2047 2048 2049 2050 2051 2052 2053 2054 Edlund Eirkus Sergeant Windels Smith rt Albe Albert Welsh Michaud Williams ant Zabee Christie Corrier Koppi Martin Aswegan Sandberg Studniski O'Konek Elk River Patrol Hiring Timeline Initial Job Posting -Close _ 1/2-1/12 Date Review and Score Applications 1/14- 1/31 Complete Application Review/Interview Letters — — — � 2/1- 2/16 Sent Initial Interviews It 12/1 S - 2/23 Second Interviews ■ 2/26 - 3/1 Third Interviews 13/6 - 3/9 Chief's Interview 3/12 Provide Background Packet ,i 3/13 Conduct Background Check 3/19 - 4/6 Tentative Job Offer 4/9 Physical and Psychological Test 4/13-4/20 Formal Job Offer 1. 4/23 Official Start Date 1 5/7 Orientation 5/7-5/11 Phase I Field Training 5/14-6/17 Phase 11 Field Training 6/18-7/23 Phase III Field Traini 7/24-8/21 Final Phase 18/22-9/5 Solo Patrol 9/6 January rotiry ar pnMay juhtp July August September Expected PCT ST Goals (2021-22) Date Started Action(s) Taken Completion Completed Date Commercial Development Issued RFI, been working with one developer(Sub 4125 HRA Main/Gates Project Group) on apartment project w/ some commercial space. Considering new approaches now that 4125 has Sept. 2021 paused their pursuit of this project. 10% 2023 Property aquisitions and cleaning of titles has occured. Ebert Joplin/Business Ave Project Property was sold to E & R. Subsquently sold to Hidden ??? Gold, LLC (Beaudry), who presently holds title. 100% 2022 Property was listed w/ Broker Ryan Hardin. One ;Market ED A TH10 Property interested party, currently under Jan.2022 discussion/negotiation. 20% Jan-23 Budget and sinking fund for building repair Transition PW Facility bond to general levy Will be able to add to the levy for 2023 Designated funding source for downtown dock so Move GRE Fund Balance to Building Fund whenever that is completed remaining funds can be 2021 moved to the Building Pu ;d N/A 2022 Parks & Recreation Capital Plan - Funding LOST -funded projects 2019 YAC, Orono Park under construction 80% Late Spring 2022 Field/facility- user fees shift. 2021 Updated policies and fee schedule 80% 2023-24 Zoning & Acquisition of "challenged" properties policy discussion 2020 Scheduled for a Council Work Session Jun-22 Complete Lion John Weicht Park (playground, disc golf, trail, lighting) Aug-21 Trails resurfaced in 2021 25% F&T Community Event Center Branding Study conducted on parking and traffic, revealing largely Downtown Traffic, Parking and Pedestrian Crossing Studies sufficient parking supply (though not always proximate to destination), and current traffic configuration is making the the best use of existing geometrics. Have Summer 2021 not looked as closely at the HWY 10/RR Ped Crossing. 75% Dec. 2022 Rivers Edge Park Dock Fall 2021 Plan complete, topography study underway 10 Fall 2022 PCT Expected MT Goals (2027) Date Started Action(s) Taken Completed Completion Date Budget Plan - Post Waste Management 28 acres acquired with Cargill land exchange. Land will Acquire business park land be pad -ready following the current construction project and availabe to sell in Summer 2022. 50% 1 2023 Assist developers with private acquisition as needed. Invovles technical support, and potential financial ongoing support as necessary and approved. 10% ongoing Develop means for park capital needs Authorized Pavement Management plan to support Trail maintenance funding plan Sep-21 trail maintenace as available after street pavement 100% maintenace needs are met Field/facility- user fees lFall 2021 Fees were approved by City Council 2/7/22 100% 2/7/2022 Commercial development Marketing property and will continue to pursue a HRA Main/Gates Project 2021 development partner for the site. 10% Sold to Beaudry in 2020. An upcoming project will be Ebert Joplin/Business Ave Project coordinating with the owner on development of the property. 100% Property was listed w/ Broker Ryan Hardin. One Market 1 DA TH10 Property interested party, currently under Jan.2022 discussion/negotiation. 20% (Short or mid) understand obligations for landfill once it is capped Bubble over football practice field Oak Knoll/Hale's Field improvement - collaboration with ISD #728 2022 To be inicuded with athletic faciities master planning Oct-23 Parks and Rec app - directions, ads, amenities, park features 2021 Staff has not found an app that will work well Complete athletic field needs analysis 22-Feb Kick off meeting in February. Surveys will go out 5% 31-Oct (Short or mid) Update our branding/colors more toward red and black to match ERHS Will schedule a Work Session to discuss project scope Youth Athletic Complex and Oak Knoll Master Plans 2023 To be completed after fields analysis 0 Oct-23 Improve Broadband Connectivity Jul-21 Resolution of support approved 1.18.2022; Contract 0 12.31.2023 with Arvig approved at 4.4.2022 Council mtg. Expected LT Goals (2032) Date Started Action(s) Taken PCT Completed Completion Date Initiated a study of new USA expansion for needed sewer Urban Service Area expansion Jan-22 and water infrastrucutre needs 25% Dec, 2022 Cargill land swap secured 28 acres of prime industrial property. Market and pursue development of existing EDA July, 2022 (This C/I develo )jnent 2021 sites. 25% phase) Analysis of what to do with-arbage once closes in 2030. Development of S echt property in eastern Elk River Periodically speak with owner and developers 5% Applied for Federal Grant to complete loop along CSAH 13, Trail connections Continuous CSAH 12 and CR 40 25% 2026 Pedestrian Trail Connection downtown over the railroad and TH10. Broadway on 10 (115 residential units), Business Center Drive Extension, marketing EDA parcels. Pursuing specific More retail development in western Elk River 2021 sectors and businesses for location on west -side. 10% What does redevelopment look like if H«-%7 10 becomes a freeway? Riverwalk from Orono Park to City of Ramsey Feasibility of moving train station to downtown On hold 0% Outdoor swimming )ool Worked with legislators in 2022 to introduce bills for funding of grade seperated interchanges on TH 10 between Transportation development funding Ongoing Hyw 101 and Ramsey 15% Unknown ARPA Funds Discussion Elk River was awarded $2.6 million in federal funds. They must be used by December 31, 2024. Latest guidance exempts the first $10 million from the original use limitations Broadband expansion ($301,305) is our only use thus far. Parks and Recreation • Security Cameras and Prox Card access for parks and FTCenter • Transition Rec Trac to Civic Rec — about $19,000 one-time fee $9,000 annual — Rec Trac currently $16,000/year. Implementation is 18-24 weeks, and we should commit this summer in order to be done with Rec Trac by January/February • Lost Revenues for the FTCenter • FTCenter Locker Room Expansion for Junior Hockey Team ($82,440) • Zamboni deposit ($25,000) • Pave YAC parking lot ($600,000) • Pave Hillside Park parking lot ($130,000) • WTRP storage garage. In 2023 PIR ($175,000) Finance • Migrate financial software to version Incode 10 — take advantage of newer technologies that allow for more functionality, flexibility, and efficiencies to improve financial management. Our current software, Incode 9, was implemented in 2008). Cost unknown • Implement Laserfiche paperless AP workflow — with the pandemic more vendors are emailing invoices rather than sending print copies, which we print to enter into the AP module then scan back into Laserfiche. Cost unknown Information Technology • Fiber loop to connect Fire Station 3 and eastern part of city ($500,000 - $700,000) • Phone system upgrade, current system installed in 2015. ($200,000) • Security camera servers/camera, city facilities not parks. ($60,000 - $90,000) • Update fire panels on city facilities from analog to digital phone lines ($200,000) Community Development/Public Works • CR33 Trail Design Modifications ($600,000) • Facade Grant Program ($150,000 - $250,000) • Business Center Drive Extension — Beehive to Waco ($700,000) • ERMU Water AMR ($2+M total) • WWTP Lift Station Grinders ($350,000) Junior A Tier III Hockey Team Proposal Minnesota Squatch Jon "Chic" Pojar, Owner — GM - Head Coach USPHL Franchise granted Planned Five Year Contract Team Needs: 1. 18 Home games, 3 hrs per event on Friday and Saturday evenings. Preferable start times 7:00-7:30 p.m. The date range for regular season games is Oct. 1 - March 1. 2. Home playoff game ice time availability during the first and second week of March 2023. Each round is a best of 3 game series. (Fri., Sat. & Sun. if needed) 3. Practice ice available between Sept. 1 - March 1. Preferable times between 9 a.m.- noon. 1.5-hour sessions, Mon-Thurs. (estimated practice hours needed 140-150) 4. Locker room to be occupied for duration of season, Sept 1st - March 1st 5. Ability to build -out player stalls in locker room 6. Coaches' office available for duration of season 7. Showers available for both home and visiting teams MPF Advisory Commission Action: Moved by Chair Williams and seconded by Commissioner Peterson to continue to pursue agreement to house and place facility updates necessary to accommodate the MN Squatch Tier III Junior Hockey Team home venue at the Furniture and Things Community Event Center. Motion carried 7-0. PowerPoint Presentation to Commission Attached. Estimates for Locker Room Remodel: Rough Order of Magnitude Estimates Jason Whiting, Terra Construction 763.463.0244 jwhitinggterragc.com Combine the Referee & Figure Skate into one locker room. ROM Budget: $18,960 -This is assuming the wall is non -bearing. -Remove 12" block partition -Patch floor & flooring -Patch in Bench Misc. Electrical -Paint Convert Storage Room into a Referee locker room w/bathroom. ROM Budget: $52,440 -Tie new sanitary into 6" main in hallway -Tie in water, waste/ vent into existing nearby -Walls & Door -Fixtures -Patch floor & flooring -Bench Misc. Electrical -Paint Rough Order of Magnitude Estimates From Steve Fischer, Arrow Companies Cell: 612-619-9991 sfischer@c arrowcos.com Combine the Referee & Figure Skate into one locker room. (8 Foot Opening) $20,000 -This is assuming the wall is load -bearing. Combine the Referee & Figure Skate into one locker room. (12 Foot Opening) $30,000 -This is assuming the wall is load -bearing. Estimated city cost to remodel locker room spaces Convert Storage Room into a Referee locker room w/bathroom. e the Referee & Figure Skate into one locker room. (12 Foot Opening) ESTIMATED INVESTMENT Jr Team participation in locker room remodel 8uildout of Interior of Locker Room (Locker Stalls) Potential Annual Revenue Ire Use Practice Ice hours League Game Ice hours Horne Playoff Series Ice SurnrnerTraining ice Exposure Tourney Ice 8 weeks 1.5 hr./day 4 days/%,ak. Room Rental Locker Room Rent $ 1.50 SQ/FT/Month Cost Office Rent $ 1.50 SQ/FT/Month Cost Rental Cost Per SQ/FT Annual Rate $18.00 per SQ/FT Monthly Rate $1.50 per SQ/FT 150 $ 175 per/ter. 54 $ 330 per/[fir. 9 $ 330 per/Hr. 48 $ 175 per/fir. 24 S 230 per/Hr. TOTAL ICE REVENUE SQ/FT Months 595 7 151 7 TOTAL RENT REVENUE TOTAL ANNUAL REVENUE S 52,440 $ 30,000 $ 82,440 5 26,250 $ 17,820 S 2,970 $ 8,400 $ 5,520 $ 60,960 6,248 $ 1,586 $ 7,833 $ 68,793 FIVE YEAR REVENUE POTENTIAL 1 $ 343,965 MEMORANDUM OF UNDERSTANDING REGARDING STREET LIGHT INSTALLATION AND MAINTENANCE BETWEEN ELK RIVER MUNICIPAL UTILITIES AND THE CITY OF ELK RIVER, MINNESOTA This MEMORANDUM OF UNDERSTANDING, hereinafter referred to as "MOU", is hereby made and entered effective the 1 't day of January, 2012, by and between the City of Elk River, Minnesota, hereinafter referred to as the "City" and Elk River Municipal Utilities, hereinafter referred to as the "Utilities". LO Purpose The purpose of this MOU is to address the material costs and labor associated with the installation and maintenance of street lights located within the Utilities' electric service territory within the City of Elk River, Minnesota. 10 Installation of New and Replacement Street Lights The Utilities will provide as a contribution to the City all the material costs and labor associated with the installation of new or replacement street lights in street improvement and rehabilitation projects located within the Utilities' electric service territory within the City. The City will notify the Utilities of street improvement or rehabilitation projects being considered on a timely basis to provide adequate time for design and budgeting and will specify the number and location of street lights to be provided. Street lights in new developments shall be installed by the Utilities, pursuant to the Utilities' standards, as part of the Utilities' process of providing electrical distribution service to the development. The Utilities will specify the street light fixtures and be the owner of the street lighting and associated facilities assets. 3.0 Maintenance of Street Lights• The Utilities will provide as a contribution to the City all material costs and labor associated with the maintenance of street lights located within the Utilities' electric service territory within the City of Elk River, Minnesota. The maintenance of street lights will include lamping, ballasts, painting, and the locating of associated underground facilities. 4.0 Maintenance of Semaphores The Utilities will provide as a contribution to the City limited maintenance of semaphores owned by the City. The limited maintenance of these semaphores will include lamping and the locating of associated underground facilities. 5.0 Terrninadion of MOU This MOU may be cancelled or terminated without cause by either party by giving (30) calendar days advance written notice to the other party. Such notification shall state the effective date of termination or cancellation. Any and all amendments must be made in writing and must be agreed to and executed by the parties before becoming effective. IN WITNESS WHEREOF, each of the parties has caused this MOU to be executed by their duly authorized representatives: ELK RIVER MUNICIPAL UTILITIES By John Dietz Chair By Troy Adams, P.E. Utilities Director GP:3069797 v1 THE CITY OF ELK RIVER, MINNESOTA 1-0 By John Dietz, Mayor Tina Allard, City Clerk w 2 REQUEST FOR ACTION TO ITEM NUMBER Mavor and City Council 4.6. AGENDA SECTION MEETING DATE PREPARED BY Consent November 21, 2011 Troy Adams, P.E. — Utilities Director ITEM DESCRIPTION REVIEWED By Request for Approval of a Memorandum of Understanding REv1EWED BY Regarding Street Light Installation and Maintenance between Elk River Municipal Utilities and the City of Elk River, Minnesota ACTION REQUESTED Elk River Municipal Utilities requests City Council approval and execution of the proposed Memorandum of Understanding Regarding Street Light Installation and Maintenance between Elk River Municipal Utilities and the City of Elk River, Minnesota. This MOU was approved by the Utilities Commission on November 15, 2011. BAMROUND/DISCUSSION In 2007, Elk River Municipal Utilities and the City of Elk River established an agreement regarding costs associated with new and replacement street lights related to street rehabilitation and improvement projects. Although there are currently a few street lights within the City of Elk River that are not within Elk River Municipal Utilities' electric service territory, generally speaking the residents and businesses that pay through taxes for the replacement of street lights within the City of Elk River are also paying for electricity to Elk River Municipal Utilities. With this observation in mind, to provide the most efficient services to the residents, businesses, and electric customers, this goes beyond the philosophical question of whether a service should be funded through taxes or rates. It also should be noted that Elk River Municipal Utilities' electrical service territory extends beyond the corporate limits of the City of Elk River into Big Lake Township, Dayton, and Otsego. In recent years it has been noted that there are many light fixtures within the City of Elk River that are in serious disrepair and require painting or replacement. Unfortunately, these fixtures often go unaddressed until the fixtures are beyond repair. It is more expensive to replace fixtures than to repaint or repair fixtures. Therefore, it would be in the residents', businesses', and customer's best interests for these street lights to be maintained in a timely manner in an effort to be efficient and cost effective with the limited resources available. City staff is more than capable to forecast the costs and implement a maintenance/replacement plan for street lights. However, there is some efficiency to be gained by having the entity currently responsible for general maintenance to also be responsible for installation of new and long-term replacement planning of existing street lights. Elk River Municipal Utilities is equipped with the bucket and digger/derrick trucks required to do maintenance on street lights. Elk River Municipal Utilities also is licensed as an electrical contractor and would be able to legally perform electrical maintenance to street lights under the National N:\Public Bodics\City Council\Council RCA\Agenda Packet\11-21-2011\2011-11-21 - ERMU - City Counci Action Requested Memo - Street Lioting MOU.docx WK Electric Safety Code and the National Electric Code. Generally speaking, this is an opportunity for ERMU to help create efficiencies and provide better value to our residents, businesses, and customers. There are a number of issues to coordinate with the city. The street lights installed on Highway 10 are currently under a maintenance contract with a third party. Elk River Municipal Utilities would not be able to take over maintenance of these lights until that contract is done or terminated. Also, there are street lights located outside of Elk River Municipal Utilities' electric service territory, yet located within the corporate boundaries of the City of Elk River. Elk River Municipal Utilities would not be able to take over the maintenance of these lights until that service territory has been acquired (The acquisition of service territory within the corporate boundaries of a city is within the legal right of the municipal utilities since 1974.) Also, there may be street lights that are recorded as assets of the City. These would need to be transferred to the Utilities. FINAN1r1AL IMPACT The City has recently added $10,000 for street light replacement or maintenance to the 2012 City budget. This would be a reoccurring yearly budget item. By shifting these responsibilities and associated costs to Elk River Municipal Utilities, this would eliminate these reoccurring costs from the City budget. ATTACHMENTS Elk River Municipal Utilities Street Light Payment Policy - dated July 16, 2007 Memorandum of Understanding Regarding Street Light Installation and Maintenance Between Elk River Municipal Utilities and the City of Elk River, Minnesota — dated January 1, 2012 Action Motion by Second by vote Follow Up NAPublic Bodies\City Council\Council RCA\Agenda Packet\11-21-2D11\2011-11-21- ERMU -City Council Action Requested Menlo - Strut Lighting MOU.docu REQUEST FOR ACTION To Item Number Ciry Council 3.9. Agenda Section Meeting Date Prepared by Consent July 16, 2007 Lori Johnson, CityAdministrator Item Description Reviewed by Consider Street Light Payment Policy Reviewed by Action Requested Council is asked to adopt the attached street light payment policy. Background/Discussion At the July 9 work session, the city council discussed a street light payment policy between the Elk River Municipal Utilities (ERMU) and the City of Elk River for the payment of street lights in street reconstruction and improvement projects. The Elk River Municipal Utility Commission approved this policy at its June meeting. In summary, the policy states that, consistent with ERMU's existing street lighting policy, ERMU will pay for new street lights and the installation of the new lights. The city will pay for replacement street lights and ERMU will be responsible for the installation of the replacement lights. Financial Imp The street lighting costs for upcoming projects will be factored into both the project budget and ERMU's electric budget The impact to the city and ERMU will vary depending upon the number of new and replacement lights in each project Attachments -Street Light Payment Policy Action Motion by Second by Vote Follow Up S.\Council\Lori\2007\Street Light Payment policy 0716 07.doc Street Light Payment Policy The intent of the Street Light Payment Policy (Policy) is to address the payment for street lights installed in street rehabilitation and improvement projects. This Policy addresses both the replacement of existing street lights and the installation of additional street lights in street improvement and rehabilitation projects. It does not apply to new developments. The cost for street lights in street reconstruction and improvement projects will be allocated as follows: Replacement Street Lights: ■ The City will pay the material cost of replacement lights. ERMU will invoice the City for the replaced street light material cost providing documentation of the actual costs along with the invoice. ERMU will provide the labor to install the lights. 2. New Street Lights: . ■ ERMU will pay for the material cost of new street lights. ■ ERMU will provide the labor to install the lights. The City will notify ERMU of the estimated street lighting costs when a street improvement or rehabilitation project is being considered. The City will notify ERMU when a project is being considered and provide cost estimates as soon as they are available. Considered by City Council on 07/16/07 S:\POLICIES\Street Light Payment Poficy.doc