REGULAR COUNCIL MEETING
The Regular Meeting of Council was held on May 23, 1988 at 7:30 p.m. with Mayor Richter presiding. Members present were Mr. Hall, Mr. Daisey, Mrs. Legates, Mr. Lynn, Mr. Christiansen, Mr. Levitt, Mr. Weyandt and Mr. VanSant.
Council staff members present were Chief Hutchison, Mr. Lucas, Mr. Bartolotta, Mr. Roe, Mr. Karia, Ms. Bittner and Mr. Rodriguez.
The invocation was given by the Reverend J. H. Williams, Council Chaplain.
AGENDA ADDITIONS/DELETIONS
Mayor Richter requested that the Utility Committee Report be moved up on the agenda, to item #5A. Mr. Weyandt requested the addition of item #5B to discuss the D.O.E. Labor Agreement Contract, and item #10 to discuss drafting of an ordinance for the Parking Authority. Mr. VanSant requested the addition of item #11 to discuss a letter from Chief Hutchison.
Mr. Weyandt moved for approval of the agenda as amended, seconded by Mr. Lynn and unanimously carried.
PROCLAMATION - GERIATRIC SERVICES OF DELAWARE DAY
Mayor Richter presented the following Proclamation to Mrs. John McDonough on behalf of the Geriantric Services of Delaware:
WHEREAS, Geriatric Services of Delaware, Inc. is celebrating its 20th anniversary as a non=profit, private statewide organization working to provide quality services in the home to Delaware’s elderly and convalescent population;
WHEREAS, Geriatric Services of Delaware, Inc. was founded in 1968 in Wilmington, Delaware, and has pioneered innovative home care programs dedicated toward making “growing older a little easier”;
WHEREAS, Geriatric Services of Delaware, Inc. has set as its primary mission to act as an active advocate for Delaware’s senior citizens with health and social problems;
WHEREAS, Geriatric Services of Delaware celebrates its heritage in conjunction with Senior Citizens Month.
NOW, THEREFORE, I, CRAWFORD J. CARROLL, MAYOR OF THE CITY OF DOVER, DELAWARE, do hereby proclaim May 31, 1988 as GERIATRIC SERVICES OF DELAWARE DAY and urge the residents of the City/County to honor the mission of the agency on this, their day.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF MAY 9, 1988
The Minutes of the Annual Council Meeting of May 9, 1988 were unanimously approved by motion of Mr. Weyandt, seconded by Mr. Lynn and bore the written approval of Mayor Richter.
PUBLIC HEARING - ELECTRIC REVENUE FUND BUDGET
A public hearing was duly advertised for this time and place to consider ADOPTION OF THE City of Dover Electric Revenue Fund Budget. The City Manager explained that the City’s bond covenants require a public hearing prior to the adoption of the Electric Revenue & Improvement Fund Budgets. The Electric Revenue Fund Budget depicts a revised budget of $33,475,126 for 1987/88 and a proposed 188/89 budget of $36,266,469. The Electric Improvement Fund shows a revised budget of $3,682,742 for 1987/88 and a proposed 1988/89 budget of $3,659,075.
Mayor Richter declared the hearing open.
There was no one present to speak for or against adoption of the Electric Revenue Fund Budget and no correspondence was received.
Mayor Richter declared the hearing closed and stated that Council action on budgets would be considered during review.
UTILITY COMMITTEE REPORT
The Utility Committee met on May 11, 1988 with Chairman VanSant presiding.
District Heating Plan - Presentation by Burns & Roe
A presentation was given by Burns & Roe summarizing the results of a study for the City of Dover on a district heating plan. The plan revealed that the potential for success is present for district heating and cooling in Dover and further study was recommended. A Phase II study would expand upon the scheme for a system set forth in the Phase I study. In addition to the technical aspects of Phase II, a concentrated market effort will be made to stir interest and secure customer commitments. Investigation of all available financial vehicles will be conducted to determine the best strategy for Dover. The study will provide a conceptual design, with associated equipment and project costs, a financing strategy for the DHC company, and anticipated customer costs to connect into the system.
The project will involve a commitment of $2,800,000 the first year and approximately $7,300,000 through the four phases of the project. The savings derived from Phase I will be utilized to capitalize Phase II, with the monies being turned over until completion of the system. Theoretically, the only outlay would be for Phase I. For accounting purposes, the City will maintain a separate account for district heating will all expenses and revenues shown within the account. This will ensure that expenses are offset by revenues and that the expenses for the district heating plan are paid through the recovery of district heating sales.
It was the recommendation of the committee that the report be accepted and that Council authorize proposals for a Phase II study.
Mr. Van Sant moved for approval of the committee’s recommendation to accept the District Heating Report and that proposals for the Phase II study be authorized. The motion was seconded by Mr. Lynn and unanimously carried.
Petition to Abandon Alley Between Governors Avenue and Monroe terrace, Along Dover Street and Waples Avenue
The committee considered a request to abandon an alley between Governors Avenue and Monroe Terrace, along Dover Street and Waples Avenue. A legal question was raised by Mr. VanSant on the 20 year adverse possession statute as outlined in the Delaware Code, which relates to dedicated lands that have not been utilized or formally accepted by a municipality.
The committee tabled action on the request and directed that the Solicitor research the question on adverse possession for a legal opinion to the committee.
Request to Abandon Alleys and Brown Street
During an earlier meeting, the committee tabled action on a request by Mr. Weyandt to abandon alleys and Brown Street to allow the Planning Commission an opportunity to review the request.
The committee elected to leave this matter on the table until the Solicitor researches the question on adverse possession.
Bid - Woodcrest Tie - 4KV to 12KV Conversion
The existing 12KV Woodcrest Tie extends to south Pear Street and Mary Street as a radial circuit. In order to provide an additional loop for the feeder, the conversion of West Street and a portion of Forest Street is required. The City will supply the material for the project which is estimated at $25,000. Bids were received for the labor costs only, with the low bid being received from Philips Brothers in the amount of $48,777.
It was recommended by the committee that the bid be awarded to Philips Brothers in the amount of $48,777.
Mr. VanSant moved to approve the committee’s recommendation to award the bid to Philips Brothers in the amount of $48,777. The motion was seconded by Mr. Levitt and carried by a unanimous roll call vote.
Bid - Frazier Circuit - Dover Kenton Road
The City must provide electric service for future development to the northwest of Dover. The Electric Department proposes a loop system with one source for the loop being from the Frazier Substation. The anticipated load growth pattern makes the extension of an existing circuit from McKee Run Station the best first stage for the loop. The first stage will provide service to developments on the east side of the Kenton Road.
The City will provide the material for the project which is estimated at $66,000. Two bids were received for the labor portion of the project, with the low bid being submitted by Philips Brothers in the amount of $17,777. However, the low bidder has notified the City that a mistake has been made and they wish to withdraw the bid. The next lowest bid was submitted by Kriss Contracting in the amount of $62,100. The City engineer’s estimate for the labor portion of the project was $65,000. The committee recommended that the bid be awarded to Kriss Contracting in the amount of $62,100.
Mr. VanSant moved to award the bid to Kriss Contracting in the amount of $62,100. The motion was seconded by Mr. Hall and carried by a unanimous roll call vote.
Bid - 15KV Primary Cable
Bids were solicited for 30,000 feet of cable. The present stock of primary 1/0 cable is expected to be used this summer and delivery of the cable is expected to take 16 to 18 weeks. The low bid was received from Wesco in the amount of $48,300 and the committee recommended that the bid be awarded to Wesco.
Mr. VanSant moved to approve the committee’s recommendation to award the bid to Wesco in the amount of $48,300. The motion was seconded by Mr. Daisey and carried by a unanimous roll call vote.
Bid - McKee Run Water Storage Tank Painting
In accordance with the 1989-93 Capital Improvements Plan, the one million gallon elevated storage tank at McKee Run is scheduled to be painted. The tank was erected in 1973 and has not been painted since that time. The engineer’s estimate for the project was $95,000 and the low bid was received from Corrosion Control in the amount of $86,520. The committee suggested that the City Manager make inquiries on the possibility of painting the letters “DOVER” on the tank at the same time that it is painted.
The committee recommended that the bid be awarded to the low bidder, Corrosion Control, in the amount of $86,520. The committee suggested that the City Manager make inquiries on the possibilities of painting the letters “DOVER” on the tank at the same time that it is painted.
Mr. VanSant moved that the bid be awarded to Corrosion Control in the amount of $86,520. The motion was seconded by Mr. Weyandt and carried by a unanimous roll call vote.
McKee Run #6 Fuel Oil Supply for 1988/89
The current contract with Amerada Hess Corporation to supply #6 fuel oil to the McKee Run Power Plant will expire on June 30, 1988. Under the terms of the contract, the City has the option to extend it for another 12 months under the same terms, conditions and price. The City’s specifications call for 3% sulfur oil. Hess bid a guarantee of 2.6% sulfur and an expected range of 2.7% sulfur. Based on laboratory tests, the average sulfur content of the oil supplied by Hess has been 2.05%. Although they are supplying 2% sulfur oil, they are pricing it on 3% prices. The lower sulfur oil is a better quality and would cost from 60 cents to one dollar more per barrel at current prices.
Based upon the high quality of the oil, the excellent service, the continuation of current transportation costs, and the desire to burn the most environmentally safe fuel at the best possible price, the committee recommended that the current contract with Amerada Hess be extended for an additional 12 months. It was also recommended that staff be directed to pursue the possibility of extending the option for an additional 12 months beyond the present 12 month extension.
Mr. Bartolotta stated that Amerada Hess has agreed to the additional 12 month option.
Mr. VanSant moved to approve the committee’s recommendation, seconded by Mr. Daisey and carried by a unanimous roll call vote.
Letters - Water Storage Tank - Bayard Avenue
Estimates were solicited from contractors to paint the letters “DOVER” on the Bayard Avenue water storage tank in 4' high block letter. The low estimate was received from Eastern Tank Coatings in the amount of $1,600.
Mr. VanSant stated his feeling that the signs supplied by the State along Route #13, depicting the words “Welcome tom Dover, the Capital of the State of Delaware” were sufficient to make travelers aware that they are in the City of Dover.
The committee recommended approval of the project to paint the letter “DOVER” on the eastern side of the Bayard Avenue water storage tank and that the contract be awarded to the low bidder, Eastern Tank Coatings, in the amount of $1,600.
Mr. Bartolotta reported that since the date of the committee meeting he has been made aware of a new lettering method, which would utilize decals rather than actually painting the letters on the tank. The decal method would be more cost effective, but staff has not had an opportunity to research this method.
Mr. VanSant moved to table action on the matter to allow staff an opportunity to further investigate the decal method of lettering the tank. The motion was seconded by Mr. Weyandt and unanimously carried.
Well Field Development - Progress Report
The City Manager submitted a progress report to the committee on th well field development, stating that meetings have been held with John and Leon Tarburton in an attempt o reach a compromise on the proposed locations for well sites on their properties. The compromise would result in relocation of the proposed wells. The City Solicitor and the Tarburton’s attorney are working together to draw up an acceptable agreement to allow the City to take possession of the land, with the compensation question to be deferred until a later date which would allow the City to proceed with test wells prior to drilling of the production wells. If the project had been on schedule, it would have been on line this summer. The delay may cause serious problems with water supply and could result in major water conservation efforts.
Although the project is 2 ½ years behind schedule, the contractor, Delmarva Builders, Inc., has agreed to proceed with the work at the prices bid in 1986, providing that the City agrees to pay the costs of $980 that was incurred by the contractor for carrying their Performance Bond for the last two years. The committee recommended that Council authorize an expenditure of $980 for costs incurred by the contractor to carry the performance bond over the past two years.
Mr. VanSant moved to authorize an expenditure of $980 to cover incurred costs by the contractor to carry the performance bond over the past two years, seconded by Mr. Weyandt and unanimously carried.
Revised Water and Sewer Rates
It has been approximately two years since the City adjusted its water and sewer rates. Additional revenues have been projected in the FY 1988/89 Water/Sewer Fund budget in anticipation of a rate increase. The new rates would bring sufficient revenue into the Water/Sewer Fund to allow for new debt service on a 1988.89 WaterSewer Bond Issue. This revenue bond issue would pay for many of the growth related development activities. The debt service will be offset greatly by a proposed transfer tax and impact fee revenues. The rate increase will also fund increased preventive maintenance activities in the Water/Sewer maintenance crews. The rate increase should be sufficient to carry the Water/Sewer Fund through FY 1991/92.
The proposed increase would affect the average residential homeowner, using 21,600 gallons per quarter, by increasing their bill $2.74 per month, or $8.22 per quarter. This represents approximately a 16.3 percent increase in the bottom line bill.
The committee recommended approval of the proposed water/sewer rate increase, effective for all billings mailed on and after July 1, 1988. It was also recommended that an alternative billing form, as suggested by the City Manager, be utilized in which the total County sewer adjustment would be shown in its entirety rather than a portion shown in the base bill. The County sewer adjustment fluctuates, depending on the amount of the County bill.
Mr. VanSant moved for approval of the committee’s recommendation to approve the proposed water/sewer rate increase, effective for all billings mailed on and after July 1, 1988, utilizing the billing form as suggested by the City Manager. The motion was seconded by Mr. Weyandt and by a unanimous roll call vote, Council adopted the following water and sewer rates:
Within City
Water $1.20 per 1,000 Gallons. No Minimum Charge.
Sewer 69c* per 1,000 Gallons. No Minimum Charge.
Outside City
Water $1.80 per 1,000 Gallons. No Minimum Charge.
Sewer $1.24* per 1,000 Gallons. No Minimum Charge.
Industrial Users
Water $1.20 per 1,000 Gallons. No Minimum Charge.
Sewer 69c* per 1,000 Gallons. No Minimum Charge.
Industrial users subject to the following rate formula where the strength of their waste exceeds normal.
F = .71 + .12 (BOD ppm) + .17 (SS ppm)
300 ppm 350 ppm
Industrial Users are smapled quarterly. If the User decides more frequent sampling is necessary it must be done at the Users expense.
*All users subject to Kent County Sewer Adjustment Charge based on actual costs to kent County for conveyance and treatment.
A 5% penalty on current bill if not paid within 30 days of billing date.
Electric Rate Reduction
Revised electric rates that became effective February 1, 1987 were designed to be cost based to ensure that each class of customer pays its share of the cost of providing electric service. The fixed cost for the production, transmission and distribution of electricity was built into the new rates. Due to a much faster growth in electric sales than was anticipated, the revenue has exceeded the costs.
Based on a review of costs and revenues in the Electric Department and discussions with the City’s rate consultant, the committee recommended a reduction of one-half of one cent ($0.005) for all electric rate classes, effective July 1, 1988.
Responding to a quetion by Mr. Hall, Mr. Bartolotta stated that the only fluctuation in residential billings would be for fuel adjustment charges.
Mr. VanSant moved for approval of the committee’s recommendation to approve a reduction of one-half of one cent ($0.005) for all electric rate classes, effective July 1, 1988. The motion was seconded by Mr. Levitt and by a unanimous roll call vote, Council approved the following:
RESIDENTIAL SERVICE CLASSIFICATION
This rate is available throughout The City of Dover electric service area for household related services in a single private dwelling and incidental service outside of the home through the same meter, provided such incidental service does not exceed 20 KW of connected load.
CHARACTER OF SERVICE
Secondary voltage, 60 cycle, alternating current, single phase service.
Summer Billing Months Winter Billing Months
Monthly Rate June through October November through May
Customer
Per bill 4.00 4.00
Energy
First 1000 KWH, per KWH .0742 .0698
Over 1000 KWH, per KWH .0742 .0626
MINIMUM MONTHLY BILL
The minimum monthly bill shall be $4.00
SEASONAL SERVICE
Where a Customer takes service reguarly for less than twelve months of the year, the monthly bill is calculated in accordance with the standard rate table will be increased by twenty-five percent (25%) before the application of the Fuel Adjustment Clause and any utility tax imposed by the governmental authority. Bills will not be prorated for periods of less than one month.
FUEL ADJUSTMENT CLAUSE
All kilowatt-hours billed under this rate shall be subject to the Fuel Adjustment Clause included in this schedule.
PUBLIC UTILITY TAX
In addition to the charges provided in this service classification a surcharge will apply in accordance with any tax imposed by governmental authority upon sales of electricity.
RULES AND REGULATIONS
The General Rules and Regulations of the City of Dover electric service shal apply to service rendered under this service classification.
COMMERCIAL AND INDUSTRIAL SERVICE CLASSIFICATION
AVAILABILITY
This rate is available throughout the City of Dover electric service area for commerical and industrial purposes through a single meter.
CHARACTER OF CERVICE
Secondary voltage, 60 cycle, alternating current, single or three phase service. Other voltages may be applicable where available and at the option of the City.
Summer Billing Months Winter Billing Months
MONTHLY RATES June through October November through May
Non Demand Customers
Customer Charge
Per Bill 5.00 5.00
Energy Charge
All KWH, per KWH .0873 .0773
Demand Customers
Customer Charge
Per Bill 5.00 5.00
Demand Charge
All KWH, per KW 10.75 8.80
Energy Charge
All KWH, per KWH .0380 .0380
Space Heating Customers
Where service for commercial space heating, water heating, and air conditioning is permanently installed and separately metered, the following rate will apply.
Customer Charge
Per Bill 5.00 5.00
Energy Charge
First 3500 KWH, per KWH .0873 .0773
Over 3500 KWH, per KWH .0873 .0720
DETERMINATION OF DEMAND
With the exception of space heating service, when the Customer’s usage has exceeded 5000 KWH for two consecutive months or when the City has reason to believe the Customer’s demand is in excess of 20 KW a demand meter will be installed.
The billing demand will be the maximum fifteen minutes demand during the month, determined either by an integrating demand meter, or a lagged thermal demand meter.
In the case of fluctuating loads, such as welders, x-ray machines, elevators, etc. - - the demand of which cannot readily be measured the billing demand may be established from manufacturer’s rating or determined by other suitable methods.
In any month in which the average power factor at the delivery point is greater or less than ninety percent (90%) the measured demand shall be corrected in accordance with the following formula:
Billing Demand = Measured demand x .90
Average Power Factor
MINIMUM MONTHLY BILL
The minimum monthly bill shall be $5.00 for single pahse and $15.00 for three phase service.
The minimum demand charge shall be based on 60% of the greatest billing demand established during any month of the 12 month period ending with the current billing month.
SEASONAL SERVICE
Where a Customer takes service regularly for less than twelve months of the year, the monthly bill as calculated in accordance with the standard rate table will be increased by twenty five percent (25%) before the application of the Fuel Adjustment Clause and any utility tax imposed by the governmental authority. Bills will not be prorated for periods of less than one month.
FUEL ADJUSTMENT CLAUSE
All kilowatt-hours billed under this rate shall be subject to the Fuel Adjustment Clause included in this schedule.
PUBLIC UTILITY TAX
In addition to the charges provided for in this service classification, a surcharge will apply in accordance with any tax imposed by governmental authority upon sales of electricity.
RULES AND REGULATIONS
The General Rules and Regulations of the City of Dover for electric service shall apply to service rendered under this service classification.
PRIMARY SERVICE CLASSIFICATION
AVAILABILITY
This rate is available to commercial and industrial Customers taking delivery at the primary voltage available, and where the transforming and protective apparatus is furnished, owned, and maintained by the Customer.
CHARACTER OF SERVICE
Primary voltage, 60 cycle, alternating current, three phase service.
Summer Billing Months Winter Billing Months
MONTHLY RATES June through October November through May
Demand Charge
All KW, per KW 8.50 5.80
Energy Charge
All KWH, per KWH .0343 .0343
DETERMINATION OF DEMAND
The billing demand will be the maximum fifteen minute demand during the month, determined by an integrating demand meter, or a lagged thermal demand meter.
In the case of fluctuating loads, such as welders, x-ray machines, elevators, etc. - - the demand of which cannot readily be measured the billing demand may be established from the manufacturer’s rating or determined by other suitable methods.
In any month in which the average power factor at the delivery point is greater or less than ninety percent (90%) the measured demand shall be corrected in accordance with the following formula:
Billing Demand = Measured Demand x .90
Average Power Factor
MINIMUM MONTHLY BILL
The minimum monthly bill shall be equal to the demand charge which shall be based on the greater of three hundred kilowatts or 60% of the greatest billing demand established during any month of the 12 month period ending with the current billing month.
FUEL ADJUSTMENT CLAUSE
All kilowatt-hours billed under this rate shall be subject to the Fuel Adjustment Clause approved by the Council of the City of Dover.
PUBLIC UTILITY TAX
In addition to the charges provided for in this service classification, a surcharge will apply in accordance with any tax imposed by governmental authority upon sales of electricity.
RULES AND REGULATIONS
The general rules and regulations of the City of Dover for electric service shall apply to service rendered under this service classification. If a Customer who is on the Primary rate classification wishes to switch to commercial and industrial classification, the Customer may do so at the Customer’s choice. If such a change occurs, the City will determine on a case-by-case basis which portion, if any, of the Customer-owned electrical equipment will be maintained by the City provided, however, that any equipment transferred to City ownership will be so transferred at no cost to the City.
TRANSMISSION VOLTAGE SERVICE CLASSIFICATION
AVAILABILITY
This rate is available by special contract throughout the City of Dover electric service area to Customers located where Dover’s existing facilities are adequate to supply the character of service as specified below.
CHARACTER OF SERVICE
The electric power delivered hereunder shall be three phase, sixty cycle, alternating current at a nominal potential of sixty-nine thousand (69,000) volts.
Demand, energy and power factor will be metered at the point of delivery of service. All transformation, circuiting and protective apparatus beyond the point of delivery shall be installed, owned and maintained by the Customer. Service shall be supplied and metered at 69,000 volts and the Customer is required to own and maintain all transforming, switching and protective equipment.
MONTHLY RATES
The monthly bill shall be the sum of the demand and energy charges as follows:
Summer Billing Months Winter Billing Months
&