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8.1 SR 05-16-2022Request for Action To Item Number Mayor and Ci T Council 8.1 Agenda Section Meeting Date Prepared by General Business May 16, 2022 Cal Portner, City Administrator Item Description Reviewed by Street Light Installation and Maintenance Reviewed by Agreement Action Requested Approve, by motion, the Street Light Installation and Maintenance Agreement between the City of Elk River and Elk River Municipal Utilities. Background/Discussion In 2011, the City of Elk River and Elk River Municipal Utilities (ERMU) approved a Memorandum of Understanding (MOU) which amended an earlier ERMU policy regarding the maintenance, addition of new, and replacement of city -owned streetlights. The MOU also gave ownership of city streetlights to ERMU and acknowledged ERMU's maintenance of city -owned semaphores. When the downtown streetlights were replaced, the selected lights intended to have a higher wind load rating to allow for hanging banners and other decorations. The new agreement acknowledges that ERMU owns all city streetlights and that they will maintain city trail lights along Trunk Highway 10 and city semaphores and will replace trail lights with the city paying the material cost. It also allows for city -requested changeout of banners and hanging items on downtown streetlights and on utility poles. The American Legion provides U.S. Flags that are displayed in utility poles from Memorial Day through Labor Day. The agreement stipulates that the items displayed on utility poles be done so at city request. Financial Impact N/A Mission/Policy/Goal Elk River Mission Statement Attachments ■ ERMU May 10, 2022, Staff Report ■ Street Light Installation and Maintenance Agreement ■ 2012 Memorandum between the City of Elk River and Elk River Municipal Utilities The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires pi ospei ly. M TUREJ Updated.• August 2020 Elk River Municipal Utilities UTILITIES COMMISSION MEETING BACKGROUND: Last fall the Downtown Elk River Business Association (DERBA) approached ERMU requesting wreaths to be hung on the streetlights during the Christmas season. ERMU agreed to work with the DERBA to see if they could find decorations that would work with the streetlights and sent a memo summarizing all decorations attached to the streetlights noting that ERMU would bill the DERBA for the labor involved with hanging and removing the decorations. At the February 8 commission meeting, Chair John Dietz brought forward a request from Council Member Jennifer Wagner to have the Utility donate the labor to hang and remove the wreath decorations rather than invoice the DERBA. This was discussed at the March 8 Commission meeting and ERMU was tasked with providing an updated understanding of the streetlight agreement with the City, either through policy or the existing Memorandum of Understanding (MOU). We have decided to move forward with an Agreement rather than an MOU. DISCUSSION: Attached is Streetlight Installation and Maintenance Agreement Between Elk River Municipal Utilities and The City of Elk River, Minnesota. This agreement clarifies the understanding that ERMU will maintain the streetlights downtown, hang banners as needed (but not annually), install and remove wreaths annually, and install and remove flags on specified poles Memorial Day through Labor Day. It also adds that the trail lights along Highway 10 are owned by the City and ERMU will provide the labor for maintenance. Trail light maintenance will be provided as contributions to the City, in line with our Payment in Lieu of Taxes and Other Donations to the City policy, and proper accounting treatment. Please note there are Appendices noted in the Agreement with maps identifying the specific streetlights, trail lights, and poles. However, these maps are not available yet and ERMU and the City will need to work together to create them. We can provide them to the Commission when available, or if needed to approve the Agreement we would need to defer action to June. Page 1 of 2 ino ATTACHMENTS: • 2022 Streetlight Installation and Maintenance Agreement Between Elk River Municipal Utilities and The City of Elk River, Minnesota • Memorandum of Understanding Regarding Streetlight Installation and Maintenance Between Elk River Municipal Utilities and The City of Elk River, Minnesota 1.1.2012 • Commission Policy G.2a Commission -City Council Relationships and Roles • Commission Policy G.2a1 Payment in Lieu of Taxes and Other Donations to the City of Elk River Page 2 of 2 11 f1 STREETLIGHT INSTALLATION AND MAINTENANCE AGREEMENT BETWEEN ELK RIVER MUNICIPAL UTILITIES AND THE CITY OF ELK RIVER, MINNESOTA This AGREEMENT, hereinafter referred to as "Agreement," is hereby made and entered effective the 16th day of May, 2022, by and between the City of Elk River, Minnesota, hereinafter referred to as the "City" and Elk River Municipal Utilities, hereinafter referred to as "ERMU", and replaces the prior Memorandum of Understanding between the parties dated January 1, 2012. 1.0 Purpose The purpose of this Agreement is to clarify the following with regard to streetlights, semaphores, and utility poles within the City of Elk River, Minnesota: • The ownership of streetlights and certain trail lights within the City. • Maintenance of semaphores within the City. • The installation of new and replacement streetlights in existing developments. • The material and labor costs associated with the installation and removal of City -approved brackets on streetlights and utility poles. 2.0 Installation of New and Replacement Streetlights ERMU shall provide as a contribution to the residents of Elk River all the material costs and labor associated with the installation of new or replacement streetlights in street improvement and rehabilitation projects located within the City. The City shall notify ERMU of street improvement or rehabilitation projects under consideration on a timely basis to provide adequate time for design and budgeting and will specify the number and location of streetlights to be installed. Streetlights in new developments shall be installed by ERMU, pursuant to ERMU's standards. ERMU shall take possession of streetlight fixtures and associated public improvements that meet City/ERMU standard when public improvements are accepted by the City. 3.0 Maintenance of Streetlights and Trail Lights As owner of City streetlights, ERMU shall provide all material costs and labor associated with maintenance of all streetlights located within the City. The maintenance of streetlights will include tamping, ballasts, painting, and the locating of associated underground facilities. ERMU shall also maintain the City owned trail lights along Trunk Highway 10 from Orono Park to Downtown Elk River as a contribution to the City, and thereby the residents of Elk River (see map Appendix I.) The city shall pay the material cost to replace said trail lights. 4.0 Maintenance of Semaphores ERMU shall provide as a contribution to the residents of Elk River, limited maintenance of semaphores when such public improvements are turned over to the City for public ownership. The limited maintenance of these semaphores will include lamping and the locating of associated underground facilities. 5.0 Attachments of Brackets to Streetlights Upon request by City, and when deemed possible by ERMU, ERMU shall attach brackets to certain downtown streetlights within the City (see map Appendix II.) ERMU will maintain and replace the brackets as necessary and will bill the City for labor and materials. In order to avoid unnecessary wear and tear/maintenance issues, the brackets may be used only for the following: • Hanging banners year round • Hanging planters in summer and wreath decorations during the holiday season. The banners, plants, and wreath decorations shall be provided by the City. ERMU will install replacement banners provided by the City when necessary for repair or replacement. The City shall install, maintain, and remove the hanging planters seasonally. ERMU will install and remove the wreaths annually, providing the labor as a contribution to the City. 6.0 Attachment of Flags to Specified Utility Poles Flags will be installed on specific bracketed utility poles from Memorial Day to Labor Day in the Mississippi Connections designated downtown (see map Appendix III.) Flags will be provided by the City and installed and removed by ERMU. 7.0 Termination of Agreement This Agreement 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 by the parties before becoming effective. IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed by their duly authorized representatives: ELK RIVER MUNICIPAL UTILITIES BY. BY. John Dietz, Chair Theresa Slominski, General Manager THE CITY OF ELK RIVER, MINNESOTA BY. BY. John Dietz, Mayor Tina Allard, City Clerk APPENDIX I APPENDIX II APPENDIX III 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 St 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". 1.0 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. 2.0 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. 117 5.0 Termination 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 M 41 B Jot 'Netz Chair BY- Troy Adams, P.E. Utilities Director GP:3069797 A THE CITY OF ELK RIVER, MINNESOTA By_..... Jo Dietz, ay r By . ,, Tina Allard, City Cle rk 2 11A