5.2. ERMUSR 06-12-2007i
Elk River ^-~
Municipal Utilities
13069 Orono Parkway
Elk River, MN 55330
June 4, 2007
To: Elk River Municipal Utilities Commission
Jerry Takle
Jerry Gumphrey
Jim Tralle
From: Bryan Adams
Subject: Decorative Street Light Replacement Costs
phone: 763.441.2020
Fax~.163.441.8099
The City has started a street rehabilitation program approximately four years ago. These projects
often effect the water department if we need to replace water mains. The electric department is
also affected if we need to relocate the electric distribution system or street light system. The
subject of this memo is street light system upgrade. The question is in street rehabilitation
projects where street lighting already exists, who should pay to have street lighting system
upgraded to decorative poles instead of wood utility poles.
This subject was asked a number of months ago to this commission. City and utility staff was
directed to draft an acceptable payment policy. Attached is a proposed policy that staff
recommends. For reference, the cost to upgrade to a decorative pole is in the $800 to $1000 per
pole range.
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MEMORANDUM
TO: Bryan Adams,
FROM: Lori Johnson, City Administrator
DATE: May 7, 2007
SUBJECT: Payment of decorative street costs in stree# 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 decoratitfe 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 fornial understanding of how the
cost of the street lights would be paid.
You did not feel it was appm}~riate thatthe electric fund pay for all of the new lights and
projects, along tivith all the electricity to powerthe light. You stated concern about areas
where the electric unlit}' 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 sarnearea. You did agree, howeti~er, that it is the electric utility's responsibility to
install neri7i~hts and, in fact, would install those under your street lighting policy if they
were requested.
We agreed that a more fait 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 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\Lon\2007\BAdams street light poles 050707.doc