SPECIAL MEETING

June 18, 1962

A special meeting of City Council was held Monday, June 18, 1962 at 7:30 P.M. with Mayor Carroll presiding. Councilmen present were Messrs Hayes, Hill, Holpp, Hughes, Mowlds, Turner, Walls and Zartman.

The meeting was called for the purpose of discussing the requirements of the General Foods Corporation who are considering construction of a plant in or near the City of Dover, and the problems those requirements present.

One of the requirements is a supply of electrical power in quantities ranging from 10,000 to 12, 500 KVA to be supplied from two sources in order to provide a form backup in the event of power failure from the major source. Mayor Carroll, Solicitor Buckson and City Manager Ward met with representatives of the Southern Division of Delaware Power & Light Company on the subject and investigated the possibility of obtaining stand-by power service to meet the requirements of the proposed plant. Mr. Nelson, Manager of the Southern Division of DP&L, set forth DP&L’s reply to the meeting in a letter dated June 12, which contained in effect the following proposals:

DP&L would supply and bill the proposed plant direct, with dual transmission lines providing the two sources of power.

DP&L would supply the power as above, but would bill the City which would in turn bill General Foods Corporation.

DP&L would supply the power for General Foods through one transmission line, bill the City would provide standby service thru its own transmission line.

Mr. Nelson’s letter stated that a standby or back-up line was of no interest to them and they had no rate classification for such a service.

Since receipt of the letter Councilman Hughes arranged a meeting between the president of Delaware Power & Light Co. and City Council for tonight.

A. T. Gardner, President of Delaware Power & Light Company, and Mr. Nelson appeared before City Council. Mr. Gardner read a prepared statement, attached hereto, which summarized the proposals contained in Mr. Nelson’s letter of June 12. The statement also held out the possibility of an interchange arrangement under which the Dover plant would become an integral part of the DP&L system, with its operation being subject to the direction of their load dispatcher. Such an interchange arrangement would be conditioned on a 15 year contract in respect to the General Foods power requirements and to the extension of the Dover Air Base contract, or a similar one, for a period of 15 years.

Mr. Gardner elaborated on his prepared statement, voluntarily and in response to questions. The prepared statement noted that power under proposal one, above, would be supplied under a low New Castle County rate. He went on to say that the rate was Service Classification ‘O’ for which an equivalent rate, not yet filed, was being prepared for Kent and Sussex Counties. In answer to a question, he also stated that te new rate would apply to each of the three proposals for supplying power to General Foods. In discussing the interchange, he stated that the arrangement would be a matter for negotiation, and suggested that the City employ disinterested engineering experts to negotiate on its behalf. He stated it might also be possible to eliminate the requirement of a 15 year contract for the General Foods load from the interchange agreement. He suggested that one of the first three proposals could become effective while an interchange agreement was being worked out. He thought that an interchange agreement could be worked out within a month’s time.

TIME SCHEDULE

Mr. Henry Ridgley Horsey, representing the owners of property on which General Foods Corporation, has an option, asked what the time schedule was for the City’s reply to General Foods Corporation on their requirements. He thought that June 20 was the date by which replies were excepted. City officials stated that no such date was set and that all firm requirements of General Foods were not yet known.

ENGINEERING CONSULTANTS

Peter McTague, a representative of W. C. Gilman Engineering Consultants, was present at the meeting and answered Council’s questions about the possibility of his firm representing the City in negotiations with Delaware Power & Light Company on an interchange agreement. He stated that his firm had negotiated similar agreements in many parts of the country. The rate would be $150 per day per man, plus expenses. He felt that if both parties wished to enter such an agreement, one could be worked out in 30 working days, and that it would be preferable if no interim agreement existed to hamper negotiations.

The Mayor and Council and City officials believed that the offer of possible interchange agreement was worth investigating and negotiating. They believe also that in considering the proposals of DP&L, assurance could be given General Foods Corporation that their requirements for electric power would be met.

On motion of Mr. Hill, seconded by Mr. Walls, Council by unanimous vote authorized the employment of W. C. Gilman Associates to represent the City of Dover in negotiations over a possible interchange agreement and to submit its recommendations to City Council as soon as possible, at a cost not to exceed $150 per man per day, plus expenses.

Mr. McTague was also of the opinion that the employment of his firm for the above purpose would not conflict with their duties as Engineering Consultants under the Bond Resolution of May 9, 1960.

WATER

General Foods Corporation have estimated their water requirements from the City to be as high as 1000 gallons per minute. They ask for 10" water lines to be looped, one main to be provided in the vicinity of the railroad and Wyoming Avenue, the other on the Hazletville Road. A tentative estimate of the cost to the City for wells, tank and mains is $150,000. In addition General Foods asks for permission to drill two wells on the site with the water to be used for cooling in one of their food processes and then returned to the ground.

On motion of Mr. Hayes, seconded by Mr. Holpp, Council granted permission to drill two wells on the proposed plant site, on condition the water is returned to the ground.

TRASH

Estimates received from General Foods indicated they would ask the City to handle the disposal of burnable trash totaling 300 cubic yards a day, five days a week. Their officials say this estimate is too high and they will give revised figures in the near future.

SEWAGE

Estimates on sewage treatment indicate that the load from the proposed General Foods plant will require additions to the sewage treatment plant to cost $400,000, a portion of which cost would be borne by Federal funds. Sewer main extension on the Hazlettville Road also would be required.

Council adjourned at 11:45 P.M.

F. Neylan

City Clerk

All orders, resolutions and ordinances adopted by City Council at its meeting of June 18, 1962 are hereby approved.

                                                                                                                                                            

June 21, 1962                                                                                 Crawford J. Carroll Mayor