UTILITY COMMITTEE

The Utility Committee meeting was held on December 10, 2007 at 5:00 p.m. with Chairman Ruane presiding. Members present were Mr. McGiffin, Mr. Cregar, and Mr. Snaman. Members of Council present were Mr. Slavin, Mr. Hogan, Mr. Salters (arrived at 5:11 p.m.), Council President Williams, and Mayor Carey. Councilman-Elect Leary was also present.

AGENDA ADDITIONS/DELETIONS

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

Draft Franchise Agreement – Verizon Delaware LLC

Mrs. Mitchell, Finance Director/Treasurer, advised members that in January 2007, the City received a request for a cable franchise from Verizon in order to offer FiOS TV services to the residents of Dover. A sub-committee was formed, consisting of Mr. Ruane, Mr. Carey, Mrs. Mitchell, Mr. Lunt, and Mr. DePrima to review the request. She advised members that the City obtained the services of Mr. Dan Cohen of Cohen Law Group to assist the City in negotiations with Verizon for the cable franchise. After several negotiation sessions and draft agreements, a final draft agreement has been developed that is felt to be fair and equitable to both the City and Verizon, and that will provide the citizens with an alternative provider.

Staff recommended that a Public Hearing be scheduled before the Utility Committee on January 2, 2008 and that this item to be placed on the January 14, 2008 Council agenda for consideration.

Referring to the 7^th paragraph on page 1 of the draft agreement, Mr. Ruane stated that the major focus of this meeting is to provide public notice to our residents and to set a date for a public hearing. He also noted that any questions regarding the availability of the service should be directed to Mr. Al Karr, Service Manager for Verizon, by calling at 301-282-8339. Mr. Ruane also introduced Ms. Bonnie Metz, Vice-President of Government and State Affairs for Verizon.

Members relayed concern with the vagueness of Section 3.1.1 with regards to service availability. Mr. DePrima explained that Section 3.1.1.1 was a compromise supported by the sub-committee to assure deployment of the cable services in the franchise area. Mr. McGiffin requested that, in addition to the number of subscribers, the location of the subscribers should be provided by the Local Franchising Authority (LFA).

Responding to Mr. Cregar, Mr. Ruane stated that the sub-committee was very concerned that there would be recognition of the fact that they were interested in deployment throughout the City and were pleased that the entire City was included in the service area. He stated that members were looking for opportunities to review those areas of the City that would not be able to receive the service and be provided the reasons. It was his opinion that Section 3.1.1.1 would provide the City the opportunity to discuss any reservations or concerns and would allow members of Council to seek information regarding deployment of the service.

Elaborating, Mr. DePrima stated that Verizon provided a service area map that depicted the locations of areas that they were able to provide the service at this time and those areas that they were not. Deployment of the system has no relevance to any socioeconomic demographic information. It was his feeling that the areas of deployment is based on the current system, and its cost effectiveness for planning and deployment.

Mr. McGiffin stated that his inquiry was based on constituents requests and his ability to provide details on the expectations for the service.

With reference to Section 3.1.1, Mr. Hogan noted that the last sentence of Section 3.1.1, which references density requirements, should be corrected to reflect “Section 3.2" rather than “Section 3.1.1.1".

Mr. Hogan suggested that Appendix C, Section 4, Paragraph H also address those instances when only a few channels are lost.

Should members have any questions prior to the public hearing, Mr. Ruane suggested that they contact Mrs. Mitchell who would convey them to Mr. Cohen to obtain clarification. Mr. Ruane requested that any comments, questions, or concerns be submitted in written form, including specifics as to the paragraph of the Agreement, to the City Clerk’s Office to be considered by members during their public hearing. He stated that the committee would acknowledge receipt of the correspondence and provided assurance that they will be addressed at that time.

Mr. McGiffin moved to recommend that a public hearing be scheduled before the Utility Committee on January 2, 2008 at 6:30 p.m. in the Council Chambers at City Hall for the purpose of reviewing the Franchise Agreement with Verizon Delaware LLC, as recommended by staff. The motion was seconded by Mr. Cregar and unanimously carried.

Mr. Ruane noted that the committee’s action after the public hearing would be submitted to City Council for consideration on January 14, 2007, at which time members of Council will have the opportunity to formally vote on the proposal.

There being no further business or objections, Mr. Ruane adjourned the meeting.

Meeting Adjourned at 5:42 P.M.

                                                                                    Respectfully submitted,

                                                                                    Eugene B. Ruane

                                                                                    Chairman

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