Attachment

UTILITY COMMITTEE AGENDA SEPTEMBER 22, 2014 - 5:15 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. AMENDMENTS TO THE LAKELAND INTERCONNECTION AGREEMENT (TIDEWATER UTILITIES) (Staff recommends authorizing the City Manager to amend the existing Lakeland Interconnection Agreement with Tidewater Utilities, Inc. to include the monthly facilities charge allowed in Tidewater’s tariff and to also include the supply of both domestic water and fire protection at the meter location) 2. ADJOURNMENT BY 5:55 P.M. /tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Agendas\2014\09-22-2014 UTILITY REVISED.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Utility Committee DEPARTMENT OF ORIGIN: City Manager’s Office DATE SUBMITTED: September 11, 2014 PREPARED BY: Scott D. Koenig, P.E., City Manager SUBJECT: Amendments to the Lakeland Interconnection Agreement (Tidewater Utilities) REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: Scott D. Koenig, P.E., City Manager; Donna Mitchell, Controller EXHIBITS: Exhibit A – Correspondence dated July 29, 2014; Exhibit B – Copy of the current interconnection agreement. EXPENDITURE REQUIRED: $0 AMOUNT BUDGETED: $0 FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIME TIMETABLE: Upon Council Approval. RECOMMENDED ACTION: Authorize the City Manager to amend the existing Lakeland Interconnection Agreement with Tidewater Utilities, Inc. to include the monthly facilities charge allowed in Tidewater’s tariff and to also include the supply of both domestic water and fire protection at the meter location. BACKGROUND AND ANALYSIS In May 2004, the City of Dover and Tidewater Utilities, Inc. (TUI) entered into an interconnection agreement for the primary purpose of providing fire protection (water supply) assistance to Tidewater’s service territory on South State Street. This interconnection, known as the Lakeland Interconnection, has been functioning in this capacity since the agreement was signed. In late July 2014, Tidewater Utilities submitted a request to city staff to alter the agreement so that domestic water supply could be purchased for this area at the “in city” rate. TUI has indicated that the domestic demand in this area has been between 800,000 gallons and 1,200,000 gallons per month. The City Manager has reviewed the request and believes amending the agreement is in the best interest of both entities. Provided that a monthly facilities charge for the existing 6” meter (currently billed at $497.55 per month per Tidewater’s tariff) remains in place, staff has no objections to extending the “in city” rate since this amounts to a substantial bulk purchase of water. The City has enjoyed an outstanding business relationship with Tidewater Utilities at this location for more than a decade.

Exhibit A

Exhibit B

Exhibit B

Exhibit B