COUNCIL COMMITTEES
The Council Committees Meeting was held on July 12, 1994, at 7:10 p.m. Noting that only the Utility Committee was scheduled to meet, Councilman Lambert presided, with Mr. Tudor, Mrs. Malone and Mr. Weyandt present.
UTILITY COMMITTEE
The Utility Committee met with Chairman Lambert presiding. Members present were Councilman Tudor and Mr. Carey. Councilman Hare was absent.
Agenda Additions/Deletions
Mr. Lambert requested the addition of item #5 to consider a request from the Sunroc Corporation to amend the resolution abandoning portions of Galaxy Drive and Starlifter Avenue.
Mr. Carey moved to accept the agenda as amended, seconded by Mr. Tudor and unanimously carried.
Water Treatment Plant Agreement
Members considered an Agreement with American Commonwealth Management Services Company, Inc. to provide certain professional services related to the Water Treatment Plant Start-Up Operations. The Agreement covers recruiting and training of City personnel as well as setting up the plant operations. Mr. O'Connor stated that the water treatment plant will be opening within the next 30 days. Since ozone treatment is new to our water system and the City has not had a treatment plant in the past, Mr. O'Connor explained that this type of contract is important. The Agreement will enable the City to put the plant on line with minimal inconvenience to our customers and at the same time provide us with additional capacity.
In response to Mr. Tudor, Mr. O'Connor advised members that the plant will ultimately be operated solely by City personnel. In accordance with the Agreement, American Commonwealth Management Services Company will assist the City in managing the operation and maintenance of the water plant and related facilities during plant start-up operation which is estimated to extend for one year, from August 1, 1994 through July 31, 1995. The cost to the City for their services will be $9,500 per month. Mr. O'Connor explained that the City currently does not have trained personnel to run a water plant. It was his understanding that when the water plant was built, although the City would own the plant, the operation of the plant would be contracted out. Mr. O'Connor felt that it would be more economical and feasible for the City to own and operate the water plant rather than having the operation of the plant being conducted by another company. He stated that the water plant must be operated within certain State and Federal Regulations which the City has no knowledge of at this time. American Commonwealth Management Services Company will train City personnel to ensure their knowledge and understanding of these regulations. The City will ultimately staff water plant operators and trained technicians.
Responding to Mr. Carey's concern, Mr. O'Connor stated that as indicated in Section X, Governing Law, of the Agreement, "Commonwealth of Pennsylvania" should be eliminated and replaced with "State of Delaware".
Mr. Carey moved to recommend approval of the Water Treatment Plant Agreement with American Commonwealth Management Services Co., Inc., stipulating that Section X be amended by replacing "Commonwealth of Pennsylvania" with "State of Delaware" (Attachment #1). The motion was seconded by Mr. Tudor and unanimously carried.
Professional Services Contract - Electric Power Supply
The City has received several offers and options concerning the sale of the City's power plant. Mr. O'Connor presented members with a proposed agreement with Dickinson, Wright, Moon, VanDusen & Freeman to provide professional services in reviewing and negotiating the power supply options to serve the residents and customers of the City of Dover. Mr. O'Connor advised members that Mr. Kirk Betts, of Dickinson, Wright, Moon, VanDusen & Freeman, has had extensive discussions with staff as well as the Chairman of the Utility Committee relative to the City's situation. Mr. O'Connor indicated that this firm has had contracts with other municipal utilities with generation and capacity and that they were highly recommended by these municipalities. He noted that Mr. Betts personally handled the negotiations and has recently been retained by the DEMEC group in their efforts to seek alternative power supply proposals.
Responding to Mr. Tudor, Mr. O'Connor stated that the costs and expedition of finalizing this matter will be determined by the power supply option City Council elects. Mr. O'Connor advised members that Mr. Betts has been analyzing the proposals to assure that they are viable and will be making a presentation and recommendation to Council during the Quarterly Open Town Meeting of August 1, 1994.
Mr. Tudor moved to recommend approval of the Professional Services Contract for Electric Power Supply with Dickinson, Wright, Moon, VanDusen & Freeman (Attachment #2). The motion was seconded by Mr. Carey and unanimously carried.
Bid - U.S. Route #113 Sanitary Sewer Main Extension
In conjunction with the City's 1993/94 Capital Improvements Plan, it was proposed to construct approximately 1,400 L.F. of eight (8) inch gravity sewer main from Miller Road in a southerly direction to the properties north of Bay Court Plaza. A portion of this project will be assessed to properties which are currently on septic systems. Funding was obtained for this project in the 1993 Water/Wastewater Revenue Bond Issue. Staff recommended awarding the contract to the low bidder, Marvel Contracting Co., Inc., in the amount of $82,169.41.
In response to Mr. Tudor, Mr. O'Connor stated that there are only two properties that the sewer main extension would service. Neither one of the properties are currently having a problem with their private septic systems. He also stated that sewer is already available to all other surrounding properties. Mr. Tudor relayed concern with expending $82,169.41 to provide sewer to properties that are not in need of the service. He suggested that the costs for this project be utilized for an area that has more of a need for City sewer.
Mr. O'Connor reminded members that the City instituted a program designed to eliminate private septic tanks in the City of Dover. The City instituted a plan to extend the City's sewer system in order to eliminate septic tanks on existing properties within the City limits. The plan includes a map depicting the areas where it is necessary to extend the City's sewer system and that this particular area meets that criteria. Although he agreed that this project cannot be cost justified, Mr. O'Connor relayed concern with altering the direction the City has taken to eliminate private septic tanks. The program instituted to extend the City's sewer system was based on potential environmental problems that could occur with private septic system, not upon the number of customers. Since several of these types of projects have been accomplished, the City is now attacking remote sites and, therefore, will bear the majority of the costs involved.
Mr. Tudor moved to table the U.S. Route #113 Sanitary Sewer Main Extension to allow staff the opportunity to review proposed sewer line extensions to determine their priority to be presented back to the committee for their review and recommendation. The motion was seconded by Mr. Carey and unanimously carried.
Quarterly Fuel Adjustment Review
The City reviews its fuel adjustment projections at least quarterly and modifies its fuel adjustment in December on a levelized basis for the next calendar year. The current fuel adjustment is set at -$0.01000 per KWH. The 1994 fuel adjustment was set at -$0.00255 and revised to -$0.01000 May 1, 1994 in order to refund a surplus in the fuel adjustment fund.
Mr. O'Connor advised members that the current cost for low sulfur oil is $18.53 per barrel ($0.44/gallon). The average price projected for 1994 was $15.73 per barrel ($0.38/gallon). The price of oil has gone from a low of $14.82 per barrel in December 1993 to a high of $20.78 in February, down to $16.03 at the end of March, and back to the current price of $18.53. Market conditions indicate uncertainty at least through the summer. The fuel fund has a balance at the end of May 1994 of $5,257,392.96. Staff recommended no changes in the fuel adjustment rate.
Mr. Carey moved to recommend approval of staff's recommendation, seconded by Mr. Tudor and unanimously carried.
Sunroc Corporation - Street Abandonment - Galaxy Drive and Starlifter Avenue
During their Regular Meeting of April 11, 1994, City Council adopted a resolution abandoning portions of Galaxy Drive and Starlifter Avenue, located in Kent County AeroPark. City Solicitor Rodriguez recently received correspondence from the Sunroc Corporation's attorney indicating a need to amend the recent resolution. The original resolution included standard language retaining utility easements in the right-of-way. The Sunroc Corporation requires that these easements also be abandoned. Staff assured members that there is no foreseen need for the utility easements and recommended that they also be abandoned. It was also discovered that the legal description in the original resolution did not accurately reflect the streets to be abandoned. Staff assured members that City Council was presented with a map depicting the correct street abandonments and that there were no actual changes in the portions of the streets to be abandoned.
Staff recommended that a resolution be adopted abandoning portions of Galaxy Drive and Starlifter Avenue to include a revised description of the abandonment as indicated on the map and the elimination of the language that the City retain utility easements.
Mr. Tudor moved to recommend abandonment of the streets as recommended by staff (Attachment #3), seconded by Mr. Tudor and unanimously carried.
Mr. Carey moved for adjournment, seconded by Mr. Tudor and unanimously carried.
Meeting Adjourned at 8:26 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
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