5.4. SR 07-09-2007
ITEM #: 5.4.
MEMORANDUM
TO: Mayor and City Council
FROM: Lori johnson, City Administrator
DATE: July 9,2007
SUBJECT: Street Light Payment Policy
The issue of payment for street lights has come up recendy because of the City's new street
rehabilitation program. As part of these projects, street lights have been replaced and new
ones added. To date, there has not been a policy in place to address whether the Elk River
Municipal Utilities (ERMU) or the city should pay for the street lights in city initiated street
projects.
Bryan Adams, ERMU general manager, and I have come to a compromise that oudines how
the costs will be paid. Terry Maurer has also been part of those conversations. The
proposal is that the city pays for the replacement of existing light poles and that ERMU
provide the labor to install those lights poles. All new street lights will be ERMU's
responsibility including paying for the light poles and providing the labor to install them.
The Utility Commission approved this proposal at its last meeting. I would like Council
input on the proposal so that it can be put on an upcoming agenda for formal approval.
S:\Council\Lori\2007\Street Light Payment Policy memo 07 09 07.doc
MEMORANDUM
TO: Bryan Adams,
FROM: Lori Johnson, City Administrator
DATE: May 7,2007
SUBJECT: Payment of decorative street costs in street reconstruction &
improvement projects
As part of the street rehabilitation and improvement projects the city has been
undertaking in the past few years, new street lights have been installed. In some areas,
the old poles have been replaced with decorative street lights; in other areas, there were
no existing lights so new decorative street lights were installed. This process will
continue in all future projects. To date, we've not had a formal understanding of how the
cost of the street lights would be paid.
You did not feel it was appropriate that the electric fund pay for all ofthe new lights and
projects, along with all the electricity to power the light. You stated concern about areas
where the electric utility has already paid to install lights that are now being replaced
with different poles. Therefore, the electric fund would be paying twice to install lights
in the same area. You did agree, however, that it is the electric utility's responsibility to
install new lights and, in fact, would install those under your street lighting policy if they
were requested.
We agreed that a more fair way to distribute the cost of lights in the rehabilitation and
improvement projects is to have the city pay the cost for replacing existing poles and the
utilities provide the labor to install the poles. In areas where there are no existing lights,
the electric utility will be responsible for paying for the lights and installing them.
ERMU will invoice the city for the replaced street light materials cost, providing
documentation of the actual costs along with the invoice. The city will provide
information to the utilities as soon as a project is being considered so that the estimated
cost may be included in the electric fund budget.
Please review this information and give me your thoughts on the cost sharing proposal.
Of course, this proposal is subject to approval by the governing bodies. After you and I
have a chance to discuss this again, we can forward it to them for their consideration.
s: \Admin \Lori\2007\BAdams street light poles OS0707.doc