5.4. ERMUSR 06-10-2008Ji
Elk River ^~
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
June 2, 2008
To: Elk River Municipal Utilities Commission
Jerry Takle
John Dietz
Jerry Gumphrey
From: Bryan Adams
Subject: Contributions to City Policy
Phone: ?63.441.2020
Fax: 763.441.8099
At the May 2008 Elk River Municipal Utilities Commission meeting, we discussed our level of
contributions to the city and should parks be included in the donated electricity portion of the
contribution. This commission reaffirmed that parks should be included in the contribution and
directed staff to draft a policy reflecting actual contributions.
Attached is the proposed City Contribution policy. Also attached is our adopted street light
payment policy.
ELK RIVER MUNICIPAL UTILITIES
CONTRIBUTION POLICY TO CITY OF ELK RIVER
The Cash Transfer from Elk River Municipal Utilities to the City of Elk River shall be
three percent (3°/0) of the revenues generated by Elk River customers. This contribution
level shall be reviewed from time to time.
The Elk River Municipal Utilities shall donate all electricity to the City of Elk River for
all facilities not associated with enterprise funds of the City of Elk River. As an example,
this will include buildings such as City Hall, Police and Fire Departments, Library, Park,
Street Department Buildings, street lights, and signal lights, this shall not include such
buildings as Liquor Stores, Wastewater Treatment Plant, or lift stations.
The ERMU's and City of Elk River shares expenses for the Minnesota Municipal
Utilities Association safety compliance program as follows:
a) ERMU shall pay the entire fixed cost charge from MMUA.
b) ERMU and the City of Elk River shall each pay the per employee unit charge
each contribute to the program.
Street Light Payment Policy
The intent of the Street Light Payment Poficy (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 fights 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.
New Street Lights:
^ ERMU will pay for the material cost of new street lights.
• ERMU will provide the labor to install the fights.
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 liy City Council on 07/16/07
S:\POLICIIiS\Street Light Payment Policy.doc
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