UTILITY COMMITTEE

The Utility Committee Meeting was held on July 23, 2007 at 5:00 p.m. with Chairman Ruane presiding. Members present were Mr. Carey, Mr. McGiffin, and Mr. Snaman. Mr. Cregar was absent. Council President Williams was also present.

AGENDA ADDITIONS/DELETIONS

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

Evaluation of Bids - 69Kv Transmission Line Relays

The Transmission Relaying, Replacement and Calibrations project requires the purchase of twenty-three (23) new transmission relays to replace the current obsolete relays.

As all new microprocessor based relays are very intricate and are programmed in a complex computer based application that requires extensive training, it was decided in 2000 that all transmission relays purchased in the future would be manufactured by Schweitzer Engineering Laboratories. Since that date, Public Utilities has only purchased Schweitzer transmission relays in accordance with State Code, Title 29. Staff provided documentation from Schweitzer Engineering that Robinson Sales is the exclusive marketer for these relays and a 2004 letter from the Electrical Engineering Division outlining the decision to utilize only Schweitzer Relays.

Staff recommended the purchase of 23 Transmission Relays from Schweitzer Engineering Laboratories, c/o Robinson Sales, Inc., for a total cost of $127,684.

Mr. Carey moved to recommend approval of staff’s recommendation, seconded by Mr. Snaman and unanimously carried.

Briefing on 69Kv Feeders 3 & 4 Project Phase I

Mr. Lunt, Public Utilities Director, provided a briefing on the 69 Kv Feeders 3 & 4 Project Phase I (Attachment #1). He noted that the original design concept consisted of three (3) phases with a total budgeted Capital Improvement Plan (CIP) amount of $14,747,500. Mr. Lunt advised members that the project was originally presented as an Engineering Procurement and Construction (EPC) project, which meant the successful bidder would conduct the design layout, purchase all necessary materials, and provide the labor to complete the project. The project is now a City of Dover Engineered Project which will provide more control over the design and a greater number of bidders, which should result in a cost savings to the City.

Mr. Lunt noted that the briefing was provided to make members aware of the details of the project in preparation for the associated bond issue, which is forthcoming.

PACE/NAES Monthly Report (May and June)

The PACE/NAES Monthly Reports for May and June 2007 were provided to afford 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. A presentation of the reports was not intended; however, questions were welcomed.

Responding to Mr. Ruane, Mrs. Mitchell, Finance Director, advised members that the year-to-date power supply for the plant operations came in below budget, which added favorability to the budget. She noted that revenues were down $1.2M, which offsets the favorability. Mrs. Mitchell stated that they are continuing negotiations with PACE/NAES on the incentive issues.

Mr. Carey moved to recommend acceptance of the PACE/NAES Monthly Reports for May and June 2007, seconded by Mr. Snaman and unanimously carried.

Mr. Snaman moved for adjournment, seconded by Mr. Carey and unanimously carried.

Meeting Adjourned at 5:26 P.M.

                                                                                    Respectfully submitted,

                                                                                    Eugene B. Ruane

                                                                                    Chairman

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S:ClerksOfficeAgendas&MinutesCommittee-Minutes20077-23-2007 UTILITY.wpd

Attachments to Original Minutes and File Copy:

Attachment #1 - 69 Kv Feeders 3 & 4