UTILITY COMMITTEE

The Utility Committee Meeting was held on January 10, 2011 at 5:00 p.m. with Chairman Ruane presiding. Members present were Mr. Bonar, Mr. McGiffin, Major Kosior, and Mr. Snaman. Members of Council present were Council President Hogan and Mr. Leary. Mayor Carey was also present.

AGENDA ADDITIONS/DELETIONS

By unanimous consent, the agenda was approved, as presented.

Proposed Ordinance #2011-01 - Amendment to Appendix B - Zoning, Article 5 - Supplementary Regulations, (New) Section 20 - Solar and Small Wind Energy Systems

Mrs. Ann Marie Townshend, Director of Planning and Community Development, presented Proposed Ordinance #2011-01 - Amendment to Appendix B - Zoning, Article 5 - Supplementary Regulations, (New) Section 20 - Solar and Small Wind Energy Systems, for the Committee’s consideration.

Mrs. Townshend provided members with a revised version of the Proposed Ordinance (Attachment #1) and noted that changes were indicated in red. She advised members that the revisions resulted from a meeting that staff held with Councilman Eugene Ruane, Mrs. Judy Diogo (Central Delaware Chamber of Commerce), Mr. Phil McGinnis (representing area Realtors), and Mr. John Paradee (attorney representing an interested client) on January 4, 2011. Mrs. Townshend reminded members that the 2008 Comprehensive Plan called for the development of code amendments that would encourage renewable energy. She explained that the Proposed Ordinance would allow solar energy systems and small wind energy systems as accessory uses within all zoning and non-residential zones, as well as public health, safety and welfare, and add definitions for such systems to the Zoning Ordinance.

Responding to Mr. Ruane, Mrs. Townshend confirmed that the Proposed Ordinance was drafted after reviewing related State of Delaware legislation (Chapter 80 of Title 29, Section 8060) and  researching the matter through the National Planning Organization and other jurisdictions.

In response to concerns of Mr. McGiffin regarding the prohibition of free-standing solar panels in residential areas, Mrs. Townshend stated that if members wished to delay action, staff could research the standards for residential areas. She indicated that there are concerns with intrusiveness and explained the importance of establishing set-back requirements.

Mr. Bonar relayed concerns with the types of screening that would be required and requested that staff provide details regarding the term “visually screened.”

Mr. Phil McGinnis, McGinnnis Commercial Real Estate Company, 555 E. Loockerman Street, stated that he chairs the Public Policy Committee for the Kent County Association of Realtors and advised members that he worked with the State Legislature for three (3) to four (4) years on the associated State statute and supports the revised Proposed Ordinance presented by staff. In considering the specific issues regarding the height of the turbine and screening for the City of Dover, he noted that properties are typically 30 to 50 feet wide and, therefore, could not support a wind turbine. Mr. McGinnis stated that, as a result, solar panels would be the only option for renewable energy. In terms of screening, he explained that reflective lighting off solar panels is a potential problem; however, he stated that he was convinced that such concerns have been satisfied in the revised Proposed Ordinance.

Mr. John Paradee of the law firm Prickett, Jones, and Elliott, 11 North State Street, indicated that representatives of Arca Advisors were present, as well as Mr. Don Burg and Mr. Craig Frater, principals of his client, CD Realty Advisors. He commended the City for its support of alternative renewable energy, as expressed through the Comprehensive Plan and consideration of the Proposed Ordinance. Mr. Paradee explained that CD Realty Advisors owns several parcels at the Silver Lake Business Park and that, although many of the parcels have been improved with buildings which have been leased to various users, there is one (1) parcel that remains vacant. Due to current market conditions, he stated that his clients have been exploring other options for the use of this property. Mr. Paradee noted that the firm’s desire is to put a ground-mounted solar energy system on the vacant parcel to generate energy to support and satisfy the needs of one (1) of its buildings. In order for this concept to work, he stated that more than 30% of the lot area would be required, which the Proposed Ordinance prohibits. He also relayed concern with establishing a threshold that allows for a project to be permitted as a conditional use, explaining that businesses and their financial institutions would require certainty. Mr. Paradee requested that ground-mounted solar energy systems be a permitted use in non-residential areas, not an accessory use. He assured members that, although he appreciates the City’s consideration of both solar and wind energy systems, his clients have no interest in wind energy systems.

Responding to Mr. Ruane, Mr. Paradee stated that, since the meeting held on January 4, 2011, he had further opportunity to discuss the matter with his clients and was made aware of their concerns regarding the restrictions related to lot coverage.

Mr. Brian Yeager, representative of Arca Advisors, provided members with a Statement from the Delaware Solar Energy Coalition regarding the Proposed Ordinance (Attachment #2) and reviewed Ground Mount Solar Array Quick Facts (Attachment #3). Due to the important role that manufacturing, labor, installation, and financing play in solar pricing, Mr. Yeager explained that restricting the use of lot area would be disincentivizing.

Mr. Donald Burg, CD Realty Advisors, 200 S. Broad Street, Philadelphia, PA, relayed concerns regarding merging properties to attain the required square footage and the need for parcels to remain separate for tax records and financial purposes. For purposes of the Proposed Ordinance, he suggested that parcels which are contiguous and have common ownership be considered one (1) parcel. It was his feeling that this proposal would eliminate many of the issues with ancillary versus permitted uses.

Responding to Mr. McGiffin regarding the sale of one (1) of the properties, Mr. Burg stated that the properties would either have to be sold together or the array removed, suggesting that if the properties were sold in a manner that “breaks” the contiguous and common ownership, the result would be array removal.

Mrs. Townshend advised members that the State legislation indicates that “any wind energy system shall be buffered from any properties or structures included on the historic registry.” She explained that her concerns with principal use or permitted use within non-residential and commercial zones, from a land planning perspective, are relative to the potential long-term implications on the character of the City’s commercial areas.

In response to Mr. Ruane, Mrs. Townshend stated that there are other precedents in the Dover Code that provide consideration of properties under common ownership and that staff could research this concept and include an amendment to the Proposed Ordinance. However, she noted that the revised Proposed Ordinance indicates that the ground-mounted solar energy system shall not be located between the principal structure and the street.

Having recently visited the National Renewable Energy Laboratories in Denver, Colorado, Mr. Bonar reminded members that there is emerging technology that is very close to becoming a reality which will eliminate noticeability of such solar energy systems.

Mr. Bonar moved to recommend that action be deferred until the next Committee meeting to allow time for staff to address the concerns relayed, seconded by Mr. McGiffin and unanimously carried.

Annual Engineering Consultant’s Report on the Operation and Maintenance of the Electric System - Fiscal Year 2010

Due to time constraints, by unanimous consent, the Annual Engineering Consultant’s Report on the Operation and Maintenance of the Electric System for Fiscal Year 2010 was deferred until the next Committee meeting.

Development Projects - Performance and Maintenance Bonding Concerns

Mr. Anthony DePrima, City Manager, advised members that, as part of a shared performance goal, the City Manager, the Public Services Manager, and the Director of Planning and Community Development conducted a series of four (4) internal meetings to brainstorm various ideas to address concerns raised about performance and maintenance bonding in subdivisions, site plan compliance, ensuring the functionality of homeowners’ associations (HOAs), and other development project issues. As a result of these meetings, which were held in October, November, and December of 2010, he stated that eight (8) specific issues/concerns were identified.

Mr. DePrima assured members that the list is not comprehensive and that staff would welcome additional ideas. He requested guidance for prioritizing, noting that all issues/concerns could not be addressed in a year. He also assured members that staff’s intention is to reach out to interest groups, development associations, communities, and homeowner groups to obtain feedback, explaining that presenting these development projects to the Committee is one (1) of the first steps in the process.

Mr. Scott Koenig, Public Services Manager, reviewed the Development Project concerns and suggestions developed by staff.

Mr. Ruane suggested that the list of Development Projects be provided to members in electronic form and, at the suggestion of Mr. DePrima, that members rank the projects in priority and provide a suggested timeline to be considered by the Committee during their next meeting.

Mr. Bonar moved to recommend that staff provide the list of Development Projects to members for their review and prioritization to be considered by the Committee during their next meeting, seconded by Mr. McGiffin and unanimously carried.

Annualized Comparison of Utility Rates

Due to time constraints, Mr. Ruane requested that the Annualized Comparison of Utility Rates be deferred until the next Committee meeting.

Mr. McGiffin moved to defer the Annualized Comparison of Utility Rates until the next Committee meeting, seconded by Mr. Bonar and unanimously carried.

Review of Utility Related Capital Investment Plan (CIP) (Electric and Water/Wastewater) (November)

Due to time constraints, Mr. Ruane requested that the Review of the Utility Related CIP for Electric and Water/Wastewater for November 2010 be deferred until the next Committee meeting.

Mr. McGiffin moved to defer the Review of the Utility Related Capital Investment Plan (CIP) for Electric and Water/Wastewater for November 2010 until the next Committee meeting, seconded by Mr. Bonar and unanimously carried.

By unanimous consent, the meeting adjourned at 5:53 p.m.

                                                                                    Respectfully submitted,

Eugene B. Ruane

Chairman

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Attachments

Attachment #1 -   Revised Proposed Ordinance #2011-01 - Amendment to Appendix B - Zoning, Article 5 - Supplementary Regulations, (New) Section 20 - Solar and Small Wind Energy Systems

Attachment #2 -   Statement from the Delaware Solar Energy Coalition Regarding Proposed Ordinance #2011-01

Attachment #3 -   Ground Mount Solar Array Quick Facts