Minutes
These minutes are the official minutes of the MSC's June 2010 meeting held June 15, 2010 as approved at the Commission's July 27, 2010 meeting and the minutes of a special meeting held July 6, 2010 also approved at the July 27, 2010 meeting.
JUNE 15, 2010
Minutes of the monthly meeting of the Municipal Services Commission held June 15, 2010 at the office of the Commission, 216 Chestnut Street. The meeting was called to order at 4:00 P.M. with Robert S. Appleby, President, Commissioner, presiding.
Attendance Report:
Present:
Robert S. Appleby, President, Commissioner
H. Hickman Rowland, Commissioner
Francis L. Patterson, Secretary
Special Guests: Pamela Patone, Comptroller, Linda Stubbs and Mary Jane Stubbs.
PRESENTATION
President Appleby presented an artist’s rendering of a New Castle scene to Linda Stubbs as recognition of her service to the Commission on the occasion of her retirement. The President thanked Linda on behalf of the Commissioners and the Municipal Services Commission for her dedicated work. Linda thanked the Commissioners for the picture then she and her daughter Mary Jane Stubbs left the meeting.
MINUTES
With the concurrence of all the Commissioners the minutes of the May 18, 2010 regular monthly meeting and the June 2, 2010 special meeting were approved without alteration.
COMPTROLLER’S REPORT
Comptroller Patone made her monthly financial reports to the Commissioners reviewing with them changes since the last month’s reports. She gave an Executive Summary and briefly spoke about the changes of note answering the Commissioners questions as they arose. She ended her report by saying a majority of her time has been spent working with the auditors on the year end financial statement and she is currently working on the footnotes. The Commissioners said the financial forecast has certainly improved since the rate increases were put into effect.
Secretary Patterson noted that the Comptroller highlighted an area on the Cash Flow Report in order to bring attention to the need to evaluate what a proper reserve should be going forward. Comptroller Patone said she knows the Secretary has addressed this subject in the past but she felt it was time to revisit the subject in light of the many changes which have taken place at the MSC. Commissioner Rowland said the Commission’s exposure in his opinion has changed with the development of the new substation and reevaluating what a proper reserve should be is worthwhile. Commissioner Appleby suggested looking at the MSC’s insurance and their payment policy on claims. He said if the MSC’s carrier pays promptly there is not the need for a large reserve to carry the company through an emergency. The Secretary said the Commissioners have asked him to bid insurance coverage so he will review this in the course of rebidding the insurance.
Upon motion made and unanimous approval, the Commissioners accepted the financial report for the month of May and approved the payment of the May bills attached hereto.
The Comptroller left the meeting at this point.
SECRETARY’S REPORT
The Secretary reported that DEMEC did not have a meeting in May but President McCullar has two important items for June’s agenda. The first item, the Secretary said, is the allocation of benefits from Beasley II and whether the allocation from Beasley I should be reapportioned based on current loads. The Commissioners read through a memo from President McCullar outlining the options. Commissioner Knox asked if this would be voted on at the June meeting. The Secretary said he was not sure but it will be a subject of discussion. After a lengthy exchange the Commissioners decided that they would support reallocating both Beasley I & II on current loads. The Secretary said the second item of importance on the agenda is proposed legislation by the Governor and Senator McDowell to impose Renewable Portfolio Standards (RPS) on the Municipal Utilities and Co-Op. The Secretary said President McCullar has been in negotiations with Senator McDowell and the Governor’s staff regarding obligations the legislation would impose. DEMEC’s Board also had a conference call with the President to discuss their position. The Secretary explained that a compromise was being discussed which exempts the Municipalities and Co-Op from direct regulation but would require them to administer a self regulating program which would create the same results. The Secretary went on to explain other nuances of the legislation and companion bills being proposed regarding aggregation of renewable resources. The Secretary said in the Commissioner’s papers he placed copies of letters he sent to the Commission’s State legislators regarding the proposed bills and the MSC’s opposition.
The Secretary reviewed with the Commissioners the status of water and electric progress at Riverbend in Old New Castle and what needs to be done to activate water to Phase II and III. Commissioner Appleby said he attended a City Council meeting where Mr. Capano asked to amend the subdivision restrictions from a 55 and older community to an unrestricted development. Commissioner Appleby said Council was going to send the request to the Planning Commission for their comment and recomendation.
The Secretary said in Riveredge Business Park the TA Instruments well issue continues to linger. The Secretary said it seems lawyers for DNREC and TA instruments are talking and DNREC is waiting for those discussions to end before enforcing the well closing.
The Secretary said in Twin Spans Business Park the MSC has supplied Mr. Harvey’s son with information he requested regarding water services. The Secretary added in the mean time the MSC is applying financial provisions of the tariff to move compliance issues along.
The Secretary reported for Supervisor Spicer in the electric department the MSC has been short handed with two linemen fulfilling their military obligations. He said work continues behind Washington Park installing conduits for circuits coming from the new substation. The Secretary reported that a resident of Castle Ridge complained about the placement of a Delmarva Power transmission pole on the Norfolk Southern Railroad right-of-way to feed the new substation. He said he will investigate and report back to the Commissioners. He reported the electric crew is setting the transformer for Deemer’s Landing II. The Secretary mentioned Delmarva Power’s labor union would probably go on strike the following day and he did not know how this would impact work being done for the substations. The Secretary said there is additional information in Supervisor Spicer’s written report.
The Secretary reported for Supervisor Guyer in the water department that Colonial School District is upgrading the water service to New Castle Middle School and installing a new meter at Carrie Downie. He went on to say the Trustees have purchased the Hermitage property from Mrs. Deemer which she was trying to develop. Supervisor Guyer reports he met with the owner of 202/204 Delaware Street to discuss installation of a 4 inch lateral to provide fire and domestic water service. The Secretary told the Commissioners the annexation process has begun for the Walnut Hill property on Frenchtown Road. Commissioner Knox asked if the new owner will be the same church who wanted to locate on the ABEX site. The Secretary said he wasn’t sure. The Secretary continued and said Del Dot sent plans to the MSC regarding Washington Street improvements for review and comment. In addition, he added, Penonni Associates requested the MSC locate utilities along the Ferry Cut-Off as part of survey work they have been contracted to do for Del Dot. The Secretary said as part of the water system improvements Supervisor Guyer had a pre-construction meeting with Layne Christensen, DB&F and others earlier in the day. He added there will be a meeting with Artesian Water Company on June 17, 2010 to coordinate water purchases while the treatment plant is down for rehabilitation. The Secretary said Supervisor Guyer is working very hard with the contractor to reduce the amount of time the MSC will need to purchase water. The Secretary continued and said work on the Gray Street and Basin Road buildings is wrapping up with installation of a new roof on Basin Road pump station. The Secretary told the Commissioners the aerator was delivered today to the School Lane facility and it is reported to be twice as large as the one it is replacing. The Secretary said US Tank will mobilize for painting the Gray Street water tank on June 28, 2010.
The Secretary concluded Supervisor Guyer’s report by saying that Supervisor Guyer was contacted by Chief of Police/Public Works Director Kevin McDerby about upgrading to digital radios. The Secretary said the City needs to comply with new regulations but the MSC is fine with its existing system. The Commissioners concurred with staying with the existing radio system.
OLD BUSINESS
The Secretary said Trustee member Chris Castagno has been very co-operative in including the MSC’s concerns in their Request for Proposal for a tenant for the Penn Farm. The Secretary said he has included the Well Head Protection Ordinance in the RFP to alert prospective tenants to the importance of the farm to New Castle’s water supply. The Secretary said in addition he is working with Mr. Castagno on taking over electric service from Delmarva Power which would include the School Lane treatment facility.
The Secretary reported on the progress of the new substation. He said Brandywine Construction has installed conduits from the substation side of the railroad to approximately 13th Street in Washington Park. He said they will also bore from the substation to where the new circuit will cross the railroad to avoid some wetlands. The Secretary added that Brandywine will pull the conductors once all the conduits and vaults have been installed. In the Substation they have begun to pour the piers for the downstream buss. The Secretary told the Commissioners he has run numbers and it would appear the project is under budget. He said he included in the Commissioner’s papers photographs of Delmarva Power’s work which includes the poles they set at the new substation site and the old substation site. Commissioner Appleby asked what date does the Secretary expect completion. Secretary Patterson said July 23, 2010 is the date the MSC’s engineer uses but nobody he talks to remotely believes that. He said it is more likely September.
The Secretary said Supervisor Guyer has recommended that MBA be hired to perform inspections for the tank painting. He said MBA will provide a full time inspector for a sum not to exceed $47,500. The Commissioners discussed with the Secretary concerns about MBS’s previous inspection of the Gray Street tank when the interior was done. After further discussion the Commissioners upon motion made and unanimous approval agreed to hire MBA to perform inspection services for the painting of both tanks with a price not to exceed $47,500.
NEW BUSINESS
The Secretary and Commissioners reviewed the policy guidelines for attachment to water tanks. The Secretary said MBA helped develop the policies based on their experience with a number of water utilities. The Secretary added that Staff has prepared a model lease which has been reviewed by the City’s attorney and it has been sent to Cathie Thomas, City Administrator, for her sign off. The Commissioners asked what the lease price was. The Secretary said that has not been determined and will be a part of negotiations. Upon motion made and unanimous approval the Commissioners voted to adopt the MSC Policy for Attachments to Water Tanks. The Commissioners questioned the Secretary about reimbursement to the MSC for work on the Gray Street tank which will allow attachments. The Secretary said he needs to prepare an agreement between the MSC and the City to recapture those costs.
JUNE MEETING
The Commissioners set the
date of the next monthly meeting to be July 27, 2010 at the office of the Commission, 216 Chestnut Street.
ADJOURNMENT
By
motion made and unanimous approval, the Commissioners voted to adjourn.
Approved________________
_____
_____________________________________
Date
Francis L. Patterson, IV
JULY 6, 2010
Minutes of a special meeting of the Municipal Services Commission held July 6, 2010 at the office of the Commission, 216 Chestnut Street. The meeting was called to order at 4:00 P.M. with Robert S. Appleby, President, Commissioner, presiding.
Attendance Report:
Present:
Robert S. Appleby, President, Commissioner
H. Hickman Rowland, Commissioner
Daniel F. Knox, Commissioner
Special Guests: President of Council William Barthel.
MEETING WITH WILLIAM BARTHEL, COUNCIL PRESIDENT
President of Council Bill Barthel met with the Commissioners and described what the City was doing to address storm water management through a City issue, a grant and contributions from the Trustees of New Castle Common.
President Barthel described several new projects which have been suggested as continuation projects and said the City is having the Soil and Conservation Corp. estimate the cost to execute them. President Barthel said the City needs additional financial help to cover the cost overruns due to contaminated soils. He requested $90,000 from the MSC to meet those expenses. A long discussion ensued regarding the City’s financial position and obligations to correct and manage runoff.
The Commissioners told President Barthel that the MSC was obligated to an extensive capital program and that it will need to raise rates to meet those costs. It was mentioned that it comes down to whether the MSC should raise utility rates to pay for storm water management or whether the City should raise property taxes to pay for these projects.
Commissioner Appleby asked Secretary Patterson to share problems the MSC was having at Centerpoint Business Park where an electric switch gear box has been destabilized by the contractor doing storm pond rehabilitation. The Secretary showed President of Council Barthel pictures of an MSC switch gear with the base exposed and said Building Official Jeff Bergstrom says a retention wall needs to be built to stabilize the box at an approximate cost of $7,500 to $10,000. The Secretary said Mr. Bergstrom feels this is the MSC’s expense.
The Commissioners thanked Council President Barthel for coming and said they would consider the request. Council President Barthel left the meeting at this point and the Commissioners discussed at length his request. After careful consideration the Commissioners upon motion made and unanimous approval voted to approve a contribution of $50,000 during the City’s 2010/2011 fiscal year.
OTHER BUSINESS
The Secretary reported that during an outage the MSC helped TA Instruments reset their main breaker. The Secretary said the Electric Supervisor and Assistant Supervisor found an error code on the meter and upon investigation discovered that one of the three phases was not registering consumption. The Secretary continued and said Staff researched and discovered this problem began at the inception of the account and the MSC had under billed TA Instruments $165,000. The Secretary said a letter advising them of the error has been sent and offering terms for paymen.
ADJOURNMENT
Being no further business the Commissioners by motion made and unanimous approval voted to adjourn.
Approved________________
_____
_____________________________________
Date
Francis L. Patterson, IV
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