UTILITY COMMITTEE

The Utility Committee Meeting was held on February 27, 2006 at 5:30 p.m. with Chairman Carey presiding. Members present were Mr. Ruane, Mr. Sadusky, and Mr. Cregar. Mr. Snaman was absent. Members of Council present were Mrs. Russell (arrived at 5:36 p.m.), Mr. Slavin (arrived at 6:07 p.m.), Mr. Ritter (arrived at 6:06 p.m.), Mr. Hogan, Mr. Salters (arrived at 6:15 p.m.), and Council President Williams (arrived at 5:38 p.m.). Mayor Speed was also present.

AGENDA ADDITIONS/DELETIONS

Mr. Cregar moved for approval of the agenda, seconded by Mr. Sadusky and unanimously carried.

Annexation Request - Property Located North of But Not Adjacent to College Road (North of Raymond Street and East of the Railroad Corridor and Railroad Avenue with the Eastern Boundary of the Subject Area Being the St. Jones River), Consisting of 30.776 ^+/- Acres, Owned by College Road Management, Inc., Kent Storage Facilities, LLC, and Loralex Company, LLC

Members were provided the Petition to Annex and Zone Property and a Cost/Revenue Analysis Summary for property located north of but not adjacent to College Road (north of Raymond Street and east of the railroad corridor and Railroad Avenue with the eastern boundary of the subject area being the St. Jones River), consisting of 30.776^+/- acres, owned by College Road Management, Inc., Kent Storage Facilities, LLC, and Loralex Company, LLC.

Mr. DePrima, City Manager, assured members that the City is capable of providing utilities to the parcel and provided members an updated Cost of Services (Attachment #1). Staff recommended annexation of the property.

Mr. Ruane relayed concern with the annexation due to the cost of services estimate and proposed zoning classification; however, he noted that he would support the recommendation for setting an annexation referendum based on the City’s ability to provide utilities to the parcel.

Mr. Cregar moved to recommend adoption of a resolution setting the annexation referendum for property located North of But Not Adjacent to College Road (North of Raymond Street and East of the Railroad Corridor and Railroad Avenue with the Eastern Boundary of the Subject Area Being the St. Jones River), consisting of 30.776^+/- Acres, Owned by College Road Management, Inc., Kent Storage Facilities, LLC, and Loralex Company, LLC (Attachment #2). The motion was seconded by Mr. Sadusky and unanimously carried.

Engineering Consultant's Report

The City of Dover Electric Bond Resolution requires that the City retain an independent engineering consultant to inspect the City's electric system and to review the electric budgets and insurance program. The City contracted with Burns & McDonnell to perform this year's analysis. The report provides the information related to their annual review for the Fiscal Year ended June 30, 2005.

Mrs. Mitchell, Finance Director/Treasurer, reviewed the highlights of the report which compares FY2003 to FY2005.

Staff recommended acceptance of the Engineering Consultant’s Report on the Operation and Maintenance of the Electric System for Fiscal Year 2005, as reviewed by the Finance Director.

With regard to the description for the Electric Rate Stabilization Fund, Mr. Ruane expressed concern with the wording “any excess of this amount will be refunded to customers by reducing the rate of the power cost adjustment.” Mrs. Mitchell stated that the rate stabilization reserve was set aside to off-set rate increases if necessary. Mr. Ruane suggested that the wording be corrected to indicate that it is not to be used as a refund but rather to provide for an off-set if and when there would be an increase in rates. He also suggested that the committee should periodically review long-term trends and develop strategies for addressing those trends.

Mr. Ruane moved to recommend acceptance of the Engineering Consultant's Report on the Operation and Maintenance of the Electric System for Fiscal Year 2005 as recommended by staff. The motion was seconded by Mr. Sadusky and unanimously carried.

Outage Report (Steve Sax)

Mr. Steve Sax, Electric Department Director, provided a PowerPoint presentation of the Outage Report and 2005 Highlights (Attachment #3).

Mr. Sax noted that the total outage time for 2005 was four (4) hours and twenty minutes, which is a 99.995% success rate. Mr. Ruane suggested that future reports include the status of electric construction projects.

Mr. Sadusky moved for adjournment, seconded by Mr. Cregar and unanimously carried.

Meeting Adjourned at 6:20 P.M.

                                                                                    Respectfully submitted,

                                                                                    Carleton E. Carey, Sr.

                                                                                    Chairman

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Attachments to Original Minutes and File Copy:

Attachment #1 -   Cost of Services for Annexation of Property Located North of But Not Adjacent to College Road, Owned by College Road Management, Inc., Kent Storage Facilities, LLC, and Loralex Company, LLC

Attachment #2 -   Annexation Resolution - Property Located North of But Not Adjacent to College Road, Owned by College Road Management, Inc., Kent Storage Facilities, LLC, and Loralex Company, LLC

Attachment #3 -   Power Point Presentation - Outage Report