UTILITY COMMITTEE
The Utility Committee Meeting was held on April 23, 2007 at 5:00 p.m. with Chairman Carey presiding. Members present were Mr. Ruane, Mr. Slavin, Mr. Cregar, and Mr. Snaman. Members of Council present were Mr. Hogan, Mr. Salters, Mr. McGlumphy, Mr. McGiffin (arrived at 5:19 p.m.), and Council President Williams (arrived at 5:23 p.m.). Mayor Speed was also present.
AGENDA ADDITIONS/DELETIONS
Mr. Slavin moved for approval of the agenda, seconded by Mr. Cregar and unanimously carried.
Annexation Request - 1086 South State Street, Owned by Investments Together, LLC
Members were provided the Petition to Annex and Zone Property and a Cost/Revenue Analysis Summary for property located at 1086 South State Street, owned by Investments Together, LLC.
Mr. Koenig, Public Services Director, advised members that there is a sewer manhole at the edge of the CN-MRI property to the west; however, the Public Utilities Department does not believe that the depth is sufficient to extend gravity sewer to the site. Although the property could be serviced with a grinder pump, an easement would have to be obtained from the adjacent property between the subject parcel and the manhole in order to dump into the manhole. He advised members that water service is available on State Street and that the property is located within the City’s electric service territory. The Cost-Revenue analysis showed a positive cash flow to the City of approximately $4,870 over ten years.
Staff recommended adoption of the Annexation Resolution setting the date of the Annexation Referendum to be held on June 14, 2007.
Responding to Mr. Ruane, Mr. Koenig stated that the applicant is aware that all costs associated with extending the sewer service to this property will be the responsibility of the developer.
Mr. Slavin moved to recommend adoption of the Resolution setting the date of the Annexation Referendum to be held on June 14, 2007 for property located at 1086 South State Street (Attachment #1). The motion was seconded by Mr. Snaman and unanimously carried.
Annexation Request - South Side of Forrest Avenue, West of Mifflin Road, Owned by Edwin B. Baker, III, Donald M. Carey, and Ruth Carey
Members were provided the Petition to Annex and Zone Property and a Cost/Revenue Analysis Summary for property located on the south side of Forrest Avenue, approximately 1,495.5+/- feet west of Mifflin Road, owned by Edwin B. Baker, III, Donald M. Carey, and Ruth Carey.
Mr. Koenig, Public Services Director, advised members that all utilities are available for the referenced properties. The owner/developer will be responsible for all costs and impact fees associated with connecting and extending sanitary sewer and water service to serve the properties. He also advised members that the City reserves the right, at the time the properties are redeveloped, to require the owner/developer of the property to pay for or make improvements related to any downstream capacity upgrades deemed necessary by the Public Utilities Department. The Cost-Revenue analysis showed a positive cash flow to the City of approximately $29,550 over ten years; however, Mr. Koenig noted that the analysis was performed based on the residential zoning of the subject property. This parcel, as well as the remainder of the Carey Farm (annexed in July 2006) is now planned to be used as a public school site.
Staff recommended adoption of the Annexation Resolution setting the date of the Annexation Referendum to be held on June 14, 2007.
In response to Mr. Ruane, Mr. Koenig stated that the developer of this property will be responsible for any costs associated with extending water and sewer service to this property or a combined parcel. Although it is anticipated that the property will be owned by a school district, Mr. Koenig stated that in the interim, should an individual wish to reside in the home located on this property and desired to have public water and sewer, they would be required to pay the costs associated to extend these services to the house. The City will not bear the costs to extend these utility services.
Mr. Slavin moved to recommend adoption of the Resolution setting the date of the Annexation Referendum to be held on June 14, 2007 for property located on the south side of Forrest Avenue, approximately 1,495.5+/- feet west of Mifflin Road (Attachment #2). The motion was seconded by Mr. Snaman and unanimously carried.
Update - Franchise Agreement Comprehensive Strategy - Video Services - Parameters for the Negotiations with Verizon for the Franchise Agreement
During their Regular Meeting of April 9, 2007, City Council approved the committee’s recommendation (March 26, 2007 Utility Committee Meeting) that the Treasurer/Finance Director be authorized to seek and engage, through the proper protocols, legal counsel specializing in this area to protect the City's interest in the negotiations with Verizon for a Franchise Agreement. In addition, City Council approved the committee’s recommendation that the Treasurer/Finance Director be authorized to investigate both the legality and methodology for getting reimbursement for the legal counsel costs from the applicant.
As a result, Mrs. Mitchell, Treasurer/Finance Director, presented a proposal from Cohen Law Group to perform Cable Franchise Services. She noted that the Cohen Law Group specializes exclusively in representing municipalities in cable franchise matters and that they have extensive experience negotiating with Verizon, having negotiated franchise agreements with Verizon on behalf of over 75 municipalities.
Mrs. Mitchell stated that the Cohen Law Group submitted a flat fee proposal, with a cost in the amount of $12,480, which does not include any extraordinary services requested by the client outside the scope of services contained in this proposal or any unforeseeable developments.
Mr. Ruane requested that the City Manager assure that all due diligence is being followed in regard to Verizon making changes to the wiring on the poles in anticipation of service with the City of Dover. He questioned if staff is monitoring the work being done by Verizon to assure that materials and supplies (such as roll wire being left by a pole and the hanging devices) are not abandoned and requested that this information be reported back to the committee.
In response to Mr. Cregar, Mr. DePrima confirmed that the City currently has working agreements for utilities on City owned poles. He explained that Verizon has the right to install the fiber optic lines; however, at this time, they are not permitted to put video through the lines. Their position is that the fiber optic lines are not used just for video, they also provide for data services and telephone services. He stated that Verizon is simply exercising their right under the telephone franchise to install fiber optic in advance of offering video services.
This information was provided for informational purposes only and no further action was requested of the committee.
PACE/NAES Monthly Reports (March)
Mr. DePrima provided the PACE/NAES Monthly Reports for March 2007. He reminded members that these reports are being provided each month to afford members the opportunity to monitor what is being sold in electric and the revenues received, which will give members a better understanding of any fluctuations and make improvements, if deemed necessary. It is not his intent to make a presentation of the reports; however, he welcomed any questions.
Mr. Ruane referred to a memorandum dated April 22, 2007, from Mrs. Mitchell, Treasurer/Finance Director, with the subject “March Monthly Report & Electric Fund Monitoring” (Attachment #3). He noted that according to the last paragraph of this memo, PACE informed us the calculation was being done incorrectly and our incentive should be budgeted at approximately $1.6 million rather than our budgeted $964,000. Responding, Mrs. Mitchell indicated that the increased amount has not been factored into the report.
Members concurred that staff should provide members with an update on the calculation issue at their next meeting.
Mr. Snaman moved for adjournment, seconded by Mr. Slavin and unanimously carried.
Meeting Adjourned at 5:30 P.M.
Respectfully submitted,
Carleton E. Carey, Sr.
Chairman
CEC/TM/jg
\Dover_1cityclerkClerksOfficeAgendas&MinutesCommittee-Minutes20074-23-2007 UTILITY.wpd
Attachments
Attachment #1 - Proposed Annexation Resolution - 1086 South State Street
Attachment #2 - Proposed Annexation Resolution - South Side of Forrest Avenue, West of Mifflin Road
Attachment #3 - Memo dated April 22, 2007 from Mrs. Mitchell, Treasurer/Finance Director