UTILITY COMMITTEE
The Utility Committee Meeting was held on September 8, 2008 at 5:00 p.m. with Chairman Ruane presiding. Members present were Mr. McGiffin, Mrs. Williams, Mr. Cregar, and Mr. Snaman. Mr. Leary (arrived at 5:07 p.m.) was also present.
AGENDA ADDITIONS/DELETIONS
Mrs. Williams moved for approval of the agenda, seconded by Mr. Cregar and unanimously carried.
Comcast FCC Filing Forms 1240 and 1205
Mrs. Mitchell, Controller/Treasurer, advised members that on August 1, 2008, Comcast filed FCC Form 1240 related to the cost of service for basic cable service and Form 1205 related to cost of equipment installation and service charges. In accordance with the Franchise Agreement, these forms were filed with the City and the City has ninety (90) days to act on these forms. She advised members that copies of the detailed forms are available in the City Manager’s Office and reviewed a summary of the rate changes proposed in Form 1240 and 1205, as follows:
1.The basic service maximum permitted rate allowed by the calculations on the form is $21.38. This is up from the $20.85 rate in last year’s filing.
2.The current rate is $18.75, which may be raised to $20.75.
3.The maximum permitted rate for equipment and installation has decreased for many of the services (see attached Comcast Form 1205 – Installation & Equipment Rates).
4.If Comcast is under the maximum permitted rate, and they wish to increase rates, they will notify us sixty (60) days in advance of the increase. Comcast also advertises a Public Notice of Rate changes in the Delaware State News.
5.Any rate changes will go into effect November 1, 2008.
6.The City’s Franchise Agreement does not cover Premium Services, only Basic Cable.
7.The Public Service Commission regulates rates on unincorporated areas.
Staff recommended adoption of FCC Forms 1240 and 1205 as filed.
Mrs. Williams moved to recommend approval of staff’s recommendation, seconded by Mr. Snaman and unanimously carried.
Proposal to Review Electric Financial and Rate Model and Training
Mrs. Mitchell, Controller/Treasurer, advised members that Burns & McDonnell provided a proposal to review the City’s 2008 Electric Fund financial results and compare them to the projections in the Rate Setting Model. She explained that this is being requested to validate the accuracy of the model and work through any issues that may come to light. Training was also requested to enable the City staff to develop future rate changes and maintain the City’s debt requirements.
Members were provided the proposal from Burns & McDonnell to perform review services for the City of Dover Electric System financial forecasts. Mrs. Mitchell noted that Burns & McDonnell proposes to perform the review services for an estimated fee of $12,500. This fee is based on approximately 120 man-hours for completing the required effort. This estimate does not include any expenses associated with a trip to Dover. If the work can be completed for less than the estimated fee, the City will only be billed for the actual costs incurred to complete the services. She noted that the optional model training services can be provided for an additional fee of $4,100. This fee includes expenses associated with travel for the one day training session in Dover. Mrs. Mitchell indicated that the fees for the proposal will be paid for through the 2008 Electric Bond Issue.
Staff recommended acceptance of the Burns & McDonnell Proposal at a cost of $16,600.
Responding to Mrs. Williams, Mrs. Mitchell stated that the fee for this proposal is less than last year’s fee since the rate model has already been completed. Mrs. Williams requested that staff provide information regarding last year’s fees (City Clerk’s Office Note: According to the Controller/Treasurer, the total cost paid for the recent update of the Forecast Model and Rate Study for the Electric Utility was $21,449.79.)
Mr. McGiffin moved to recommend approval of staff’s recommendation for acceptance of the Burns & McDonnell Proposal at a cost of $16,600 (Attachment #1). The motion was seconded by Mr. Cregar and unanimously carried.
2030 Energy Committee - Briefing and Scheduling of Request for Proposals - Power Supply
The 2030 Energy Plan Committee was created approximately two (2) years ago for the purpose of exploring ways of replacing or creating electric generation for the City of Dover for the future. Mr. Ruane reminded members that the 2030 Energy Committee has been requested to provide periodic updates, particularly at times when there are significant efforts being made.
Mr. Lunt, Public Utilities Director, advised members that at this time, the 2030 Energy Committee is in the process of issuing a request for proposals for power supply and reviewed an RFP Status and Selection Criteria Presentation (Attachment #2).
Mrs. Williams questioned the actual percentage of the Garrison Tract that would be utilized if selected as the site for the plant. Responding, Mr. Lunt indicated that although approximately 30-40 acres would be required, which is less than 10% of the tract, only a portion of those acres would be utilized for the plant itself. He also confirmed that if the Garrison Tract is selected for the site, the plant would not be disharmonious with any other uses of the property.
Mrs. Williams moved to recommend that the 2030 Energy Committee provide the public general information regarding the City’s consideration for addressing electric generation issues for the City of Dover for the future. The motion was seconded by Mr. Cregar.
Mr. DePrima suggested that use of the City’s Quarterly Newsletter as well as inserting a flyer into the electric bills, as a means of notifying the public of the City’s initiatives in this regard.
In response to Mr. Ruane, Mrs. Williams explained that the intention of her motion was to educate the residents of Dover by providing general information regarding the City’s efforts to address energy. She explained that this is an issue being discussed and addressed nationally and felt that it would be beneficial for the City to advise the residents of the steps being taken by the City rather than waiting for the federal government to act.
On a call for the question, the motion recommending that the 2030 Energy Committee begin to educate the public regarding the City’s efforts to address electric generation issues for the City of Dover for the future was unanimously carried.
Relaying concern that the location of the site (within the City of Dover) is not included as a criteria factor, Mr. Ruane suggested that the 2030 Energy Committee consider its inclusion. Responding, Mr. DePrima stated that although the location is not included as a factor in the presentation, he assured members that it has always been considered a very important factor.
In response to Mr. Snaman, Mr. Lunt stated that the determination of a gas fired plant has been left open for the respondents to provide their opinion as to the best solution for the City in this regard.
Responding to Mr. Ruane, Mr. Lunt stated that the use of coal has not been excluded. It was noted that environmental considerations is included as a factor in making the final determination.
Regardless of the plant’s location, Mr. Cregar explained the importance of all the zoning and planning and other review processes included in the zoning ordinance. Mr. Ruane recollected that members had previously suggested that the 2030 Energy Committee meet with the Planning Department to review these issues. Mrs. Williams noted that such a meeting should not occur until the location has been determined.
Mr. Lunt stated that there is an estimated minimum three (3) year time line for the building of the plant. Mr. Ruane requested that members be kept abreast of the time line for this project.
Mr. McGiffin moved to recommend acceptance of the Report provided by the 2030 Energy Committee (Attachment #2), seconded by Mr. Cregar and unanimously carried.
Mr. Cregar moved for adjournment, seconded by Mr. McGiffin and unanimously carried.
Meeting Adjourned at 5:44 P.M.
Respectfully submitted,
Eugene B. Ruane
Chairman
EBR/TM/jg
S:ClerksOfficeAgendas&MinutesCommittee-Minutes20089-08-2008 UTILITY.wpd
Attachments
Attachment #1 - Burns & McDonnell Proposal
Attachment #2 - Presentation by the 2030 Energy Committee - RFP Status and Selection Criteria