UTILITY COMMITTEE

The Utility Committee met on March 25, 2002, at 6:00 p.m. with Chairman Ruane presiding. Members present were Councilmen Speed and Truitt, Mr. Nichols, and Mr. Lambert. Members of Council present were Mr. Pitts, Mr. Carey, Mr. Salters, Mr. McGlumphy, and Mayor Hutchison.

AGENDA ADDITIONS/DELETIONS

Mr. DePrima requested the deletion of item #1A, Bid - Puncheon Run Sewer Pumping Station Channel Grinding System.

Mr. Speed moved for approval of the agenda as amended, seconded by Mr. Ruane and unanimously carried.

Bid - 2002 Spring Resurfacing Program

In conjunction with the City of Dover’s Capital Investments Plan, the resurfacing of various streets and alleys throughout the City is proposed for the spring of 2002. Most of the proposed program is a continuation of work which was not completed in the 2001 construction season.

Members were advised that the funding sources for the selected locations are a combination of Suburban Street Aid funds, Dover Parking Authority funds, and fiscal year 2002 Street Division operating funds. The locations that are fully funded include: Greenhill Road North Alley, Loockerman Way Parking Area, Lotus Street, Elm Terrace North Alley, Bradford Street Parking Lot, and the City Hall Parking Lot. The remaining locations are either unfunded or partially funded, as follows: Edgehill Alleys, Clara Street Extended, City Hall Employees’ Parking Lot, Queen Street (Division Street to Mary Street), and Fulton Street. The City will continue to seek the necessary funds to complete all of the locations. Comparable streets may be substituted for both Queen Street and Fulton Street depending on the availability of Suburban Street Aid funds.

Staff recommended awarding the contract for the 2002 Spring Resurfacing Program to George & Lynch, Inc., in the amount of $563,558.20. The average cost breakdown is $8.92/square yard. Mr. DePrima, City Manager, explained that there is specific language in the contract which allows the City to complete as little as 60% of the contract if the necessary funds are not available to complete all the work. He noted that all work associated with the Spring Resurfacing Program must be completed within 90 days after the Notice to Proceed is issued. In addition, all fiscal year 2002 Street Division operating funds must be expended by June 30, 2002.

Mr. Nichols moved to recommend awarding the contract for the 2002 Spring Resurfacing Program to George & Lynch, Inc., in the amount of $563,558.20, as recommended by staff. The motion was seconded by Mr. Speed and unanimously carried.

Bid - Lineman, Ground-Hand/Laborer, Man and Bucket Truck, Man and Line Truck

The Electric Department occasionally needs outside help for various electric projects throughout the year. Mr. DePrima explained that the assistance is for work that cannot be performed in-house or any backup or supplemental services that may be necessary. The bids solicited were for Lineman, Ground-Hand/Laborer, Man and Bucket Truck, and Man and Line Truck is a blanket bid with no particular jobs specified and is used only on an on-call, as needed basis.

Upon evaluation of the bids, staff recommended that the bid be awarded to the low bidder, Byers Electrical Construction (New Castle, Delaware) for a three-year period to commence upon approval by Council, as follows:

                                                 Year 2002/2003           Year 2003/2004           Year 2004/2005

           Lineman                          $40.00 per hour           $42.00 per hour           $42.00 per hour

           Ground-Hand/Laborer       $35.00 per hour           $37.00 per hour           $37.00 per hour

           Man & Bucket Truck         $65.00 per hour           $67.00 per hour           $67.00 per hour

           Man & Line Truck            $65.00 per hour           $67.00 per hour           $67.00 per hour

Funding for all jobs is available in the Electric Department’s budget for various projects. Estimated expenses for fiscal year 2002/2003 should not exceed $200,000.

Responding to Mr. Lambert, Mr. Blakeman, Electric Generation Manager, stated that Byers Electrical Construction will be serving the City from their Smyrna location and assured members that although Byers Electrical Construction has not performed work for the City in the past, they were highly recommended by their references.

Mr. Nichols moved to recommend awarding the bid to Byers Electrical Construction for a three-year period, as recommended by staff. The motion was seconded by Mr. Lambert and unanimously carried.

Information - Merger of Comcast and AT&T Broadband

Members were provided information regarding the plans of Comcast Corporation and AT&T Corporation to combine their cable systems into a new company - AT&T Comcast Corporation. It is noted that the merger of Comcast and AT&T Broadband will establish one of the world’s leading communications, media, and entertainment companies. In addition, by utilizing the combined expertise and initiative of Comcast and AT&T Broadband, their goal is to expand both the availability and choice of products and services offered to their customers.

Mr. Ruane advised members that the City’s current franchise agreement, dated July 9, 1996, is in force until July 8, 2014. He, along with the Finance Director and the Deputy City Solicitor reviewed the material provided by Comcast regarding the Broadband Merger. He noted that there is a section (Appendix F) in the franchise agreement that outlines procedures for consideration of a transfer petition. Mr. Ruane stated that the City is considering the Broadband Merger as a transfer petition, whereby the AT&T Broadband and Comcast are requesting the City’s consent to proceed with the merger. In reviewing the document, it was determined that there was a lack of information; therefore, Deputy City Solicitor Pepper was requested to write to Comcast requesting the omitted information, which essentially was the proposed wage structure, including projected charges for each service, etc. He stated that it has not yet been determined if the City should hold a public hearing regarding this matter.

Mr. Ruane noted that in accordance with the Franchise Agreement, Comcast may be required to pay an amount equal to the costs and expenses which are incurred as the result of a merger proposed. The City is permitted to charge up to an amount of $5,000 in connection with the merger for the purpose of legal counsel and other consultants deemed necessary. He also noted that the Franchise Agreement refers to the protocol, guidelines, and regulations regarding service to the FCC requirement. Because of this, it is felt that the City is in a good position in this regard. Mr. Ruane stated that this information is being provided for information purposes only and that no action is being requested at this time.

In response to Mr. Lambert, Mrs. Mitchell stated it has not yet been determined if the gross revenue will include customers of AT&T. The letter being prepared by Deputy City Solicitor Pepper will include clarification of the City’s 5% revenue receipts as well as reaffirm existing obligations. She stated that in accordance with the Franchise Agreement, the City is permitted to review customer complaints from the past two (2) years, which has been requested from Comcast.

With the exception of having clarification regarding the revenue issue, Mr. Lambert felt that the merger would be similar to the one that occurred when Storer changed to Comcast and that the City does not have the means to prohibit the merger from occurring.

Responding, Mrs. Mitchell stated that although the merger will probably occur with or without the City’s consent, it has presented an opportunity for the City to review information, ask questions, and have issues resolved.

There was no further action taken regarding this matter.

Mr. Speed moved for adjournment, seconded by Mr. Truitt and unanimously carried.

Meeting Adjourned at 6:43 P.M.

                                                                       Respectfully submitted,

                                                                       Eugene B. Ruane

                                                                       Chairman

EBR/jg

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