UTILITY COMMITTEE
The Utility Committee Meeting was held on November 27, 2006 at 5 p.m. with Chairman Carey presiding. Members present were Mr. Ruane, Mr. Slavin, Mr. Cregar and Mr. Snaman. Members of Council present were Mr. McGiffin, Mr. Hogan, Mr. McGlumpy, and Mr. Salters. Mayor Speed was also present (arrived 5:20 p.m.).
AGENDA ADDITIONS/DELETIONS
Mr. Snaman moved for approval of the agenda, seconded by Mr. Slavin and unanimously carried.
Annexation Request - Property Located at 1889 Kenton Road
Members were provided the Petition to Annex and Zone Property and a Cost/Revenue Analysis Summary for property located at 1889 Kenton Road, containing 0.50+/- acres, owned by Brian L. and William A. Bright.
Mrs. Ann Marie Townshend, City Planner, advised members that, in July of 2005, the City installed a low pressure sanitary sewer force main across Kenton Road to serve the property. Additionally, the City has installed a 1" water service to this property. This property is within the Delaware Electric Co-op’s district and Mrs. Townshend stated that she will provide additional information regarding the possible use of City electric. The Cost-Revenue analysis showed a positive cash flow to the City of approximately $6,279 over ten years.
Mrs. Townshend informed members that neighboring land owners were contacted, with no one showing interest in annexation at this time.
Mr. Ruane moved to recommend adoption of the Resolution setting the date of the Annexation Referendum to be held on January 11, 2007 for the property located at 1889 Kenton Road (Attachment #1). The motion was seconded by Mr. Slavin and unanimously carried.
Dedication of Rights-of-Way and Public Infrastructure - Hidden Creek
The developer of the Hidden Creek Subdivision, Hidden Creek, L.L.C. (Dilsheimer Homes), has requested that all rights-of-way and public infrastructure improvements related to this subdivision be dedicated to the City of Dover for permanent ownership and maintenance. Hidden Creek, L.L.C. has constructed all of the improvements in accordance with City standards and specifications. After construction was completed, City staff inspected the public improvements and provided the developer with a list of repairs to be made to meet the City of Dover Standards and Specifications for Public Works Construction. All work has been completed and a one-year Maintenance Agreement, Maintenance Bond and a Release of Liabilities has been submitted by the developer. In addition, as-built drawings have been submitted to the Department of Public Services for its permanent records.
Staff recommended acceptance of the rights-of-way and public infrastructure in the Hidden Creek Subdivision. Dedication is to include all of the referenced public improvements as follows:
Sewer Utility Infrastructure (construction value = $ 523,391.00):
10” PVC Sanitary Sewer Main- 4,107 l.f.
8" PVC Sanitary Sewer Main - 3,975 l.f.
4” PVC Sanitary Sewer Laterals - 2,284 l.f. (70 laterals)
4' Diameter Sanitary Sewer Manholes - 35 ea. (318 v.f.)
Water Utility Infrastructure (construction value = $ 161,916.00):
6” Ductile Iron Water Main - 95 l.f.
8” Ductile Iron Water Main - 4,270 l.f.
12” Ductile Iron Water Main - 805 l.f.
1” Type “K” Copper Water Service Line - 2,140 l.f. (68 services)
8” Gate Valves - 11 ea.
12” Gate Valves - 1 ea
6” Hydrant Valves - 5 ea.
Fire Hydrants - 5 ea.
2” Blow Off Assembly - 2 ea.
Storm Water Infrastructure (construction value = $ 192,958.00):
Yard Basins - 6 ea.
Single Catch Basins - 33 ea.
Double Catch Basins - 3 ea.
4’ Storm Water Manholes - 2 ea.
15” Type IV Reinforced Concrete Pipe - 1,583 l.f.
18” Type IV Reinforced Concrete Pipe - 617 l.f.
24” Type IV Reinforced Concrete Pipe - 1,491 l.f.
Street Infrastructure: (0.78 miles) (construction value = $ 520,306.00)
Riverside Road Station 0+00 to Station 12+52.24 1,252.24 l.f.
Creek Bend Road Station 0+00 to Station 9+45.70 945.70 l.f.
Canal Street Station 0+00 to Station 6+95.68 695.68 l.f.
Crickle Creek Lane Station 0+00 to Station 12+28.83 1,228.83 l.f.
4,122.45 l.f.
Mr. Carey requested that additional maps be provided that include landmarks to make the surrounding area easier to identify.
Mr. Snaman moved to recommend approval of staff’s recommendation for the acceptance of the dedication of rights-of-way and public infrastructure in the Hidden Creek Subdivision, to include all of the referenced public improvements. The motion was seconded by Mr. Slavin and unanimoulsy carried.
Potential Electric Rates for January 1, 2007
The current electric rates were adopted in June 2006 and implemented on July 1, 2006. At that time, it was conveyed that there would be a need to adjust the rates again in the next six (6) to twelve (12) months. Members were provided proposed rates (Attachment #2) designed to provide the $3.144M additional revenue which was discussed during the Burns & McDonnell presentation of October 23, 2006 and in the November 13, 2006 presentation by Mrs. Mitchell, Finance Director. Some adjustments have also been made to the demand rates. These adjustments were made so as not to overcharge these customer classes and are based on a cost of service analysis by Burns & McDonnell. Only Tilcon and the Dover Air Force Base currently have a power cost adjustment. Both of these customers are contractual. The combined rates for power cost adjustment and energy equal the standard Dover energy rates of Primary and Transmission respectively. These two customers also have seasonal demand charges (charges that are different in the summer and winter billing months). Tilcon’s contract will expire in February. Beginning in March 2007, Tilcon will be moved to the standard Primary rate. Staff is currently working with the Dover Air Force Base to move them to the standard Transmission class.
Staff recommended adoption of the potential rates, if City Council determines that the additional revenue is needed.
Mr. Carey expressed his concern regarding the current financial situation, especially the buy back of inventory from Duke Energy. Mrs. Mitchell stated that the $4.5M short-fall with the power plant includes materials and the buy back of inventory will be a balance sheet item, and will not be considered revenue. Mr. Ruane stated that the proposed 8% rate increase does not satisfy the cost of the power plants, and an additional 6% increase would be needed to reflect a true cost of service.
Responding to Mr. Snaman, Mrs. Tieman, Senior City Administrator, stated that the City’s rates are the second lowest in the State of Delaware, behind Delaware Electric Co-op.
Mr. McGlumphy requested additional information regarding the proposed rate increase per 1000 megawatt hour for a typical residential bill.
It was the consensus of members that no action would be taken at this time.
Mr. Carey moved that a joint meeting of the Legislative, Finance and Administration and Utility Committees be held on December 11, 2006 to further discuss the potential electric rates. The motion was seconded by Mr. Slavin and unanimously carried.
Mr. Slavin requested staff to distribute information to members at least 48 hours prior to the meeting to allow appropriate time to review.
Mayor Speed provided information regarding the origins of the rate stabilization fund. He also informed members that transfers to the General Fund are a common practice among municipalities, with the average percent of transfer being 5.7%.
Mr. Snaman moved to recess, seconded by Mr. Slavin and unanimously carried.
Meeting Adjourned at 5:57 P.M.
Respectfully submitted,
Carleton E. Carey, Sr.
Chairman
CEC/hf
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Attachments
Attachment #1 Annexation Referendum Resolution - 1889 Kenton Road
Attachment #2- Potential Electric Rates for January 1,2007