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3.9. SR 07-16-2007 REQUEST FOR ACTION To Ci Council Agenda Section Consent Item Description Consider Street Light Payment Policy Meeting Date ul 16, 2007 Administrator Reviewed by Action Requested Council is asked to adopt the attached street light payment policy. Backzround/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 Impact 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: 1. 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.a Considered by City Council on 07/16/07 S: \POLICIES\Street Light Payment Policy.doc