UTILITY COMMITTEE

The Utility Committee Meeting was held on October 11, 2004, at 5:30 p.m. with Chairman Carey presiding. Members present were Councilmen Ruane and Sadusky, Mr. Cregar, and Mr. Snaman. Members of Council present were Mr. Pitts, Mr. Slavin, Mr. Ritter, Mr. Hogan, and Council President Williams. Mayor Speed was also present.

AGENDA ADDITIONS/DELETIONS

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

Electric Service Handbook Amendments

Members reviewed housekeeping amendments to the Electric Service Handbook. It was noted that the amendments proposed in Division 1 (Sections 1-507, 1-513, 1-514, 1-521, and 1-522) are necessary due to the rapid advancements in computer/production technology. The amendment to Division IV will add a monthly transformer lease rate for a 300 KVA transformer, which is now available.

Mr. Ruane moved to recommend approval of the recommended amendments to the Electric Service Handbook as presented by staff (Attachment #1). The motion was seconded by Mr. Sadusky and unanimously carried.

Updates

Staff updated members regarding the following issues:

Duke Contract

Mr. DePrima stated that without disclosing negotiation strategies, he would provide a brief update on the Duke Contract. The City’s negotiations with Duke had been placed on “hold” pending some issues: 1) electric bond refinancing, which was completed a few months ago; 2) the penalties associated with the bonds; and 3) the change in the company managing the power plant, which was previously owned by a partnership between Duke Fluor Daniels and Duke Energy. Just recently Duke Fluor Daniels, LLC has been taken over solely by Duke Energy North America. When the new company took over, the City’s negotiations were put on hold to allow them an opportunity to better understand some of the operations of the plant and permitting with DNREC. In addition, negotiations were pending the completion of the new 230KV Tie and interconnection agreement.

Mr. DePrima advised members that since these items have been resolved, the plan is to move forward with the negotiations and the goal is to have it completed by the end of the year.

Electric Director Recruitment

Mr. DePrima stated that the Electric Director, Mr. Blakeman, indicated his intentions will be to retire at the end of January 2005. Having such notification has enabled staff to search for his replacement and time for overlap to provide a smooth transition. He advised members that recruitment efforts began this past summer and that 25 candidates applied for the position. Telephone interviews were held with 11 of the candidates, which narrowed it to four (4) candidates to be interviewed. At this point, although the position has not been offered, a candidate has been selected and staff will begin working towards this recruitment. It is expected that the new Electric Director will begin mid-November, which will allow a 60-day turnover before Mr. Blakeman retires.

Electric Rate Study - Public Outreach

Resulting from the committee and Council’s previous directive, Mr. DePrima stated that staff began conducting public outreach with regards to the Electric Rate Study and its recommendations. To date, presentations were made to several large businesses (Luther Towers, Playtex, Bay Developers, Central Delaware Chamber of Commerce, Chesapeake Utilities, Del Tech - Terry Campus, Delaware Economic Development Office, Delaware State University, Dover Bowl, Dover Downs, Dover Post, Greater Dover Committee, Kent County Tourism, Main Street Dover, and Sara Lee). As a result of these presentations, two (2) letters have been received. Mr. DePrima stated that it is hoped that all comments would be received by the end of October, which will allow for staff to devise recommendations for the committee’s review in November.

Although staff was unable to meet with Sunroc, Mr. DePrima stated that detailed information regarding the Rate Study Recommendations have been forwarded to them. Representatives were advised that the City was seeking feedback and that no official action by Council had been taken. Mr. DePrima advised members that data comparing proposed billing to actual billing was made available upon request. A meeting with the Sheraton Inn has been scheduled and staff is in the process of scheduling a meeting with the Capital School District.

Responding to Mr. Ruane, Mr. DePrima stated that staff will be providing an explanation in response to all correspondence received. He also assured members that when this issue is brought back to the committee for their review and recommendation, the material would be provided to members in advance to allow for thorough review.

Downtown Street Improvements

Mr. Koenig, Director of Public Works, provided information on the Downtown Revitalization Project, consisting of 2003 and 2004 Improvement Area Summary, and a map depicting the improvement areas for 2003, 2004, 2005, and those that are State maintained right-of-ways (Attachment #2). He explained that segment description for each street included in the project, the estimated costs, actual costs, and funding sources. Mr. Koenig advised members that the City has received positive responses and cooperation from the public in the project area and there has been no reported vandalism to the project work. He stated that this project has been a very worthwhile community improvement.

In response to Mr. Ruane’s suggestion, Mr. Koenig stated that he would look into federal opportunities for funding; however, based on the length of time for receiving grant monies, he would not anticipate receiving any funds for the plan years presented to members at this time.

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

Meeting Adjourned at 6:07 P.M.

                                                                                    Respectfully submitted,

                                                                                    Carleton E. Carey, Sr.

                                                                                    Chairman

CEC/jg

S:ClerksOfficeAgendas&MinutesCommittee-Minutes200410-11-2004-Utility.wpd

Attachments

Attachment #1 - Proposed Amendments to the Electric Service Handbook (Division I and IV)

Attachment #2 - Downtown Revitalization Project - 2003 and 2004 Summary and Project Area Map