UTILITY COMMITTEE
The Utility Committee Meeting was held on September 10, 2007 at 5:00 p.m. with Chairman Ruane presiding. Members present were Mr. Carey, Mr. McGiffin, Mr. Cregar, and Mr. Snaman.
AGENDA ADDITIONS/DELETIONS
Mr. Carey moved for approval of the agenda, seconded by Mr. Snaman and unanimously carried.
Comcast FCC Filing Forms 1240 and 1205
Mrs. Mitchell, Finance Director/Treasurer, advised members that on August 1, 2007, 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 and the City has 90 days to act. Members were provided a summary of the rate changes.
Mr. Snaman moved to recommend acknowledgment of receipt of Comcast FCC Filing Forms 1240 and 1205, seconded by Mr. Carey and unanimously carried.
Subdivision Street Waivers - The Arbors
In accordance with Appendix A, Article VII, Section A of the Land Subdivision Regulations, street waiver requests have been received from JNK, LLC (c/o Tony Ashburn & Son, Inc.), for property located on the north side of College Road west of the intersection with McKee Road, to be known as The Arbors Senior Condominiums.
Mrs. Melson-Williams, Senior Planner, advised members the Plan was revised in response to the Planning Commission’s request from its June 18, 2007 meeting to consider the redesign of The Arbors site layout to accommodate the continuation of the Topaz Circle “Stub Street” as a public street to interconnect with College Road as recommended by the Planning Staff. She explained that a public street better addresses safety and traffic circulation for the residents of this site and adjoining areas. In addition, it will provide a distinct second entrance to Emerald Pointe.
Mrs. Melson-Williams advised members that the main entrance for The Arbors is from this continuation of Topaz Circle. The Plan includes sidewalks along street frontages of Topaz Circle and College Road. In order to establish this segment of Topaz Circle, several waivers are required and were requested by the applicant. The first waiver request is a reduction in the horizontal curve radius of the street from 150 feet to 100 feet (Land Subdivision Regulation, Article VI, Section A, Subsection 10). The second street waiver request is a reduction of street right-of-way from 60 feet to 46 feet (Land Subdivision Regulation, Article VI, Section A, Subsection 13).
The Planning Commission recommended approval of the street waivers for the revised horizontal curve radius and the reduction of the right-of-way width from 60 feet to 46 feet.
Mr. Snaman moved to recommend approval of the requested street waiver to allow for the revised horizontal curve radius and the reduction of the right-of-way width from 60 feet to 46 feet, as recommended by the Planning Commission. The motion was seconded by Mr. McGiffin and unanimously carried.
NAES Contract Amendment 2, Incentive Calculation
Mr. Lunt, Public Utilities Director, advised members that Article VII, Section 7.7 of the North American Energy Services Company (NAES) agreement discusses the opportunity for operator incentives and lists the specific goals in Appendix B. The parties are in agreement on 4 of the 5 criteria; however, there is a discrepancy on the interpretation of the criteria titled “Equivalent Forced Outage Rate” (EFOR). There are several industry definitions and the contract did not provide a definition or a sample of the calculation. NAES inferred from the contract that the old method of incentive would be used with the addition of a capacity loss factor and had been reporting this number during the fiscal year. The City had interpreted a different calculation as defined by industry standards (although there are several different calculations used in the industry).
Since EFOR was not clearly defined in the contract, this lead to a dispute as to the intent of the provision. PACE Global Asset Management (PACE), the City’s contract manager over NAES, NAES staff, and City staff held several meetings to discuss this issue. Since the contract did not properly define the components of EFOR, it was decided that it would be prudent to determine what the proper incentive metrics should be in the future and apply that retroactively to the 2006/07 operating year. It was decided by the parties, and agreed to by the Power Management Committee, that the proper metric for the incentive should be a term referred to as “Commercial Unavailability” (CU) which factors the size of the generator (Mwh), the unavailable hours and/or de-rate hours, and the potential operating hours in the year. This is defined in the Second Amendment to the Operation and Maintenance Agreement between North American Energy Services Company and the City of Dover.
Staff recommended that the Mayor be authorized to execute Amendment 2 as presented.
Responding to Mr. Ruane, Mr. Lunt explained that the Amendment is an incentive for the company so that if the units are not available and PJM calls for them, they would be penalized for the unavailability. This would ultimately cost the City and the rate payers because if the units are not available when they are called for, our credit in the future for capacity is reduced. This particular incentive is aimed for this purpose, which would give an $80,000 bonus for the company to improve the system and plant availability.
Mr. Carey moved to recommend that the Mayor be authorized to execute NAES Contract Amendment 2, Incentive Calculation (Attachment #1), seconded by Mr. Cregar and unanimously carried.
Evaluation of Bids - College Road Switchgear
Bids were solicited for the College Road Switchgear. Mr. Lunt advised members that the switchgear is a pre-manufactured building that contains the distribution breakers, relays, batteries, and other components related to the substation. It receives the distribution voltage from the transformer and splits it to the eight distribution circuits and contains components that protect the transformer from overload and/or faults.
Staff recommended awarding the bid for the College Road Switchgear to the lowest responsive bidder, HD Supply, in the amount of $1,181,986.
There were several concerns relayed by members regarding the estimated cost being much lower than the actual cost. Mr. Lunt stated his feeling that the construction cost should be lower than estimated which will prevent the project costs from exceeding the budget.
Mr. Carey moved to recommend awarding the bid for the College Road Switchgear to the lowest responsive bidder, HD Supply, in the amount of $1,181,986, as recommended by staff. The motion was seconded by Mr. Snaman and unanimously carried.
Evaluation of Bids - SCADA Equipment Technology Upgrade
Mr. Lunt, advised members that the purpose of the SCADA Equipment Technology Upgrade Project is to replace antiquated and/or obsolete remote terminal units (RTUs) at sewage pumping stations. He stated that staff intends to purchase seven (7) RTU units and that the installation and associated work is to be performed under the existing SCADA Maintenance Contract. Mr. Lunt explained that the RTU’s are the field components of the SCADA system, which is a proprietary system; therefore, staff is required to purchase the new RTU’s from the original equipment manufacturer, Siemens Power Transmission and Distribution, Inc.
Staff recommended authorization to purchase seven (7) RTU units from the sole vendor, Siemens Power Transmission and Distribution, Inc., in the amount of $40,600.
Mr. McGiffin moved to recommend approval of staff’s recommendation, seconded by Mr. Carey and unanimously carried.
FY 2007/08 Water/Wastewater Capital Improvement Project (CIP) Briefing
Members were provided details for the FY 07/08 Water/Wastewater Capital Improvement Projects. Mrs. Duca, Assistant City Engineer, reviewed the projects in detail, as follows:
2nd Meter Reading Tech Upgrade
Inflow/Infiltration Removal (presentation to be made to committee next month)
Miscellaneous Sewer System Improvements
SCADA Equipment Technology Upgrade
South Governors Avenue Sewer Main Upgrade
Due to time constraints, Mr. Ruane indicated that the review of the Water/Wastewater CIP will be continued during the committee’s next meeting.
Having recently become more familiar with her job duties and responsibilities, Mr. Ruane commended Mrs. Duca for the outstanding job she has done for the City.
Update - Verizon Franchise Agreement Negotiations
Mr. Ruane advised members that there have been meetings, telephone conference calls, etc. held regarding the Verizon Franchise Agreement negotiations. The Sub-committee (consisting of Mr. Ruane, Mr. Carey, Mrs. Mitchell, Mr. Lunt, and Mr. DePrima) are reviewing the most recent draft agreement and that a conference call is scheduled to be held tomorrow with the City’s attorney in Philadelphia in an attempt to resolve the matter.
Mr. Ruane welcomed any suggestions that other members may have with regards to this issue.
PACE/NAES Monthly Report (July)
Due to time constraints, Mr. Ruane suggested that the PACE/NAES Monthly Report for July be deferred until the next meeting.
Mr. Carey moved to defer the PACE/NAES Monthly Report for July until the next committee meeting, seconded by Mr. McGiffin and unanimously carried.
Mr. Snaman moved for adjournment, seconded by Mr. Carey and unanimously carried.
Meeting Adjourned at 5:54 P.M.
Respectfully submitted,
Eugene B. Ruane
Chairman
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S:ClerksOfficeAgendas&MinutesCommittee-Minutes20079-10-2007 UTILITY.wpd
Attachments
Attachment #1 - NAES Contract Amendment 2, Incentive Calculation