UTILITY COMMITTEE

The Utility Committee Meeting was held on September 28, 2009 at 5:00 p.m. with Chairman Ruane presiding. Members present were Mr. Hogan, Mr. McGiffin, and Mr. Snaman. Major Kosior was absent. Councilman Leary (arrived at 5:07 p.m.) and Mayor Carey (arrived at 5:02 p.m.) were also present.

AGENDA ADDITIONS/DELETIONS

Mr. Hogan moved for approval of the agenda, seconded by Mr. Snaman and unanimously carried.

Update on Federal Energy Stimulus Funds (Tabled by Committee on 8/24/09)

During their meeting of August 24, 2009, the Utility Committee tabled the Update on Federal Stimulus Funds due to a lack of information on the subject.

Mr. Hogan moved to remove the matter from the table, seconded by Mr. McGiffin and unanimously carried.

Mr. Anthony DePrima, City Manager, thanked Mr. Ron Lunt, Public Utilities Director, for his determination in gaining information on the federal energy stimulus funds. Members were provided a summary of information compiled by Mr. Lunt.

Mr. DePrima explained that the State received approximately $13.7 million to distribute to low and moderate income households to improve energy efficiency through the Weatherization Program. He further explained that these funds would be distributed through the State Energy Office through contracts with Catholic Charities and the First State Community Action Agency. Mr. DePrima stated that, although the City of Dover is not involved, the citizens should be made aware of this program.

Mr. DePrima stated that the State Energy Office also received funding for the Energy Program and Energy Efficiency Block Grant Program. These funds will be distributed as follows:

            1.         Customer-Sited Renewable Energy (approximately $4 million)

            2.         Residential Energy Efficiency (approximately $12 million)

            3.         Commercial/Industrial Energy Efficiency (approximately $8 million)

Mr. DePrima advised that the Sustainable Energy Utility (SEU) will use funding to create at least one revolving loan fund to help supplement direct grants and rebates. In addition, he explained that the SEU is working with the Energy Office to transition the Green Energy Fund operations to the SEU.

Responding to Mr. Ruane, Mr. Lunt explained that the SEU would like to work with municipalities to have a program based on home performance with Energy Star.

In response to Mr. Ruane, Mr. DePrima stated that no specific staff member from the City of Dover has been assigned to this project; however, he and Mr. Lunt will continue to monitor the program.

Status Report on Recycling

Members were provided a Status Report on Recycle Tracking for FY 09 & FY 10 prepared by Mr. Scott Koenig, Public Services Manager (Attachment #1).

Responding to Mr. Hogan, Mr. Koenig stated that the Ops Avoidance and Total Avoidance refer to the operating and investment costs for the vehicles. He further explained that the service costs are the costs to operate the recycling program.

In response to Mr. Ruane, Mr. Koenig stated that the roll-out program for residents of the City of Dover is approximately 97%. He mentioned that the roll-out program did not include the internal parts of downtown due to the number of recycling containers that would obstruct alleys; however, if a customer requested a can, one would be delivered.

Responding to Mr. Ruane, Mr. Koenig stated that out of the approximately 20,000 tons of trash taken to the landfill, 930 tons were pure recycling, which is about 5%.

In response to Mr. Ruane, Mr. DePrima stated that although the relationship between the City of Dover and the Delaware Solid Waste Authority (DSWA) is strong, DSWA will not do a unilateral contract renewal and the bid will be done through a request for proposal (RFP) this fall. Mr. DePrima further explained that along with getting bids from vendors, Mr. Koenig will also calculate the amount of money it would take for the City of Dover to run its own recycling program and do a side-by-side comparison.

Responding to Mr. Ruane, Mr. DePrima stated that the contract for solid waste with regards to tip fees is for three (3) years and will end this coming fiscal year. He noted that negotiations for a new contract will begin soon.

In response to Mr. Ruane, Mr. DePrima stated that a transfer station for the City of Dover is not being considered due to cost.

Responding to Mr. Ruane, Mr. DePrima advised members that he would come back before the Committee in approximately two (2) months with an update on contracts for recycling and tip fees.

PACE/NAES Monthly Report (July)

Members were provided the PACE/NAES Monthly Reports for July. The reports are being provided to allow members the opportunity to monitor what is being sold in electric and the revenues received, which will give members a better understanding of any fluctuations and make improvements if deemed necessary. Although, it was not staff’s intention to make a presentation of the report, they welcomed any questions.

Responding to Mr. Ruane, Mr. DePrima stated that a sale of some of the SO² units, at around $80/per ton, would take place soon and that the budget is based on last year’s numbers of $274,000.

Mr. DePrima explained that PJM will pay the City of Dover a reactive power fee in the amount of $350,000. This fee is unbudgeted revenue and stems from the City’s ability to turn on power plants to create efficiency in the system as a whole. Mr. DePrima further explained that he is unsure if this amount will offset the $26K unfavorable variable in transmission rights credits or the $77K unfavorable variance in the transmission loss refund. Mr. Lunt mentioned that these numbers fluctuate and usually balance out; however, the energy sales are down and that is more of a concern.

In response to Mr. Ruane, Mr. Lunt stated that in the future the City might move towards a decoupling rate to help strive to for energy conservation.

Mr. Hogan moved to recommend acceptance of the PACE/NAES monthly report for July 2009, seconded by Mr. McGiffin and unanimously carried.

Mr. Hogan moved for adjournment, seconded by Mr. McGiffin and unanimously carried.

Meeting Adjourned at 5:43 P.M.

                                                                                    Respectfully submitted,

Eugene B. Ruane

Chairman

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S:ClerksOfficeAgendas&MinutesCommittee-Minutes20099-28-2009 UTILITY.wpd

Attachments

Attachment #1 - Status Report on Recycling