LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE

The Legislative, Finance, and Administration Committee meeting was held on February 14, 2011 at 6:00 p.m. with Chairman Leary presiding. Members present were Mr. McGiffin, Dr. Jones, and Mr. Shevock. Mr. Salters was absent. Members of Council present were Council President Hogan and Mr. Ruane. Mayor Carey was also present.

AGENDA ADDITIONS/DELETIONS

Dr. Jones moved for approval of the agenda, seconded by Mr. Shevock and unanimously carried.

Review and Recommendation - Filling of Critical Positions

During their meeting of February 23, 2009, members recommended approval of a Hiring Freeze for Fiscal Year 2008-2009, but to allow the hiring of critical positions through the review and approval of the Legislative, Finance, and Administration Committee and City Council. It was suggested that there be a “standing” agenda item to consider the filling of critical positions and, if there were no positions to consider, the item could be removed.

Mr. Leary noted that there were no critical positions to be considered; therefore, no further action was required.

Proposed Amendment to Purchasing Policy - Debarment

Mrs. Donna Mitchell, Controller/Treasurer, advised members that the City recently received a U. S. Department of Energy grant through the Delaware Emergency Management Agency (DEMA). She explained that, as a result of a sub-grant monitoring visit by DEMA on November 17, 2010, DEMA recommended incorporating written procedures for vendor debarment in the City’s Purchasing Policy. Mrs. Mitchell reviewed (new) Section 11 - Debarment of Vendors for Consideration of Awards of the City’s Purchasing Policy. She noted that the amended policy would include procedures for the debarment of vendors/contractors who have violated policy standards, prevent such vendors from contracting with or selling items to the City, and require the use of the Federal Excluded Parties Listing to preclude the award of any contract utilizing federal funds to debarred companies/individuals.

Mr. McGiffin moved to recommend that (new) Section 11 - Debarment of Vendors for Consideration of Awards (Attachment #1), be incorporated in the City’s Purchasing Policy, seconded by Dr. Jones and unanimously carried.

Debt Management Policy Review

Mrs. Donna Mitchell, Controller/Treasurer reviewed the Draft City of Dover Debt Management Policy (issued August 24, 2009 and revised February 14, 2011), noting that the Finance Department periodically reviews this Policy and presents recommended changes. She explained that recommended revisions to the Policy were depicted in red font, noting that a majority of the suggested changes were not substantive but were made to clarify current policy. Mrs. Mitchell noted the addition of the term “bank qualified” to Section IV, Paragraph A - Short-Term Debt (Page 3). She indicated that, in this context, the term refers to a tax-free commercial bank loan or tax-exempt bonds sold to a bank, and noted that this definition was added to the Policy Glossary (Page 13). In addition, Mrs. Mitchell stated that changes were made to Section V - Restrictions on Debt Issuance, A) Charter Restrictions, Paragraph iii (Page 4) to reflect that the City’s debt issuance is limited to five (5) percent of the total assessed value of real property, in accordance with the City’s current Charter.

Mrs. Mitchell explained that the information included in blue font on Pages 4 and 5 of the Draft Policy is not part of the policy but was inserted to provide additional information to members regarding the City’s current financial standing.

Mr. McGiffin commended Mrs. Mitchell’s diligence in ensuring that the policy is current.

Mr. McGiffin moved to recommend approval of the revised City of Dover Debt Management Policy (Attachment #2), seconded by Mr. Shevock and unanimously carried.

By unanimous consent, the meeting adjourned at 6:07 p.m.

Respectfully submitted,

Thomas J. Leary

Chairman

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Attachments

Attachment #1 -   (New) Section 11 - Debarment of Vendors for Consideration of Award of the City of Dover Purchasing Policy

Attachment #2 -   Draft City of Dover Debt Management Policy (revised February 14, 2011)