| Date: | January 24, 2011 |
REGULAR COUNCIL MEETING
The Regular Council Meeting was held on January 24, 2011 at 7:30 p.m. with Council President Hogan presiding. Council members present were Mr. Bonar, Mrs. Russell, Dr. McGlumphy, Mr. Leary, Mr. McGiffin, Mrs. Williams, Mr. Salters, and Mr. Ruane.
Council staff members present were Police Chief Hosfelt, Ms. Russell, Mrs. Mitchell, Mrs. Townshend, First Assistant Fire Chief Carey, Mr. DePrima, City Solicitor Rodriguez, and Mrs. McDowell. Mayor Carey was also present.
OPEN FORUM
The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Hogan declared the Open Forum in session and reminded those present that Council was not in official session and could not take formal action.
There was no one present wishing to speak during the Open Forum.
The invocation was given by Chaplain Dixon, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Dr. McGlumphy moved for approval of the agenda, as presented, seconded by Mr. Leary and unanimously carried.
Council President Hogan noted that Item #5 - Quarterly Revenue Report, was inadvertently listed as a consent agenda item and requested that it be removed from the consent agenda.
Mr. Bonar moved for approval of the consent agenda, as amended, seconded by Mrs. Williams and carried by a unanimous roll call vote.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JANUARY 10, 2011
The Minutes of the Regular Council Meeting of January 10, 2011 were unanimously approved by motion of Mr. Bonar, seconded by Mrs. Williams and bore the written approval of Mayor Carey.
PROCLAMATION - BLACK HISTORY MONTH
The City Clerk read the following Proclamation into the record:
Whereas, in 1861, as the United States stood at the brink of Civil War, people of African descent, both enslaved and free persons, waited with a watchful eye, understanding that a war between the North and the South might bring about jubilee - the destruction of slavery and universal freedom; and
Whereas, when the Confederacy fired upon Fort Sumter and war ensued, President Abraham Lincoln maintained that the paramount cause was to preserve the Union, not end slavery; and
Whereas, Frederick Douglass, the most prominent black leader, suggested that regardless of intentions, the war would bring an end to slavery; and
Whereas, over the course of the war, the four million people of African descent in the United States proved Douglass right. Free and enslaved blacks rallied around the Union flag in the cause of freedom; and
Whereas, nearly 200,000 joined the Grand Army of the Republic and took up arms to destroy the Confederacy, serving as recruiters, soldiers, nurses, and spies, and endured unequal treatment, massacres, and riots pursuing their quest for freedom and equality; and
Whereas, in honor of the efforts of people of African descent to destroy slavery and inaugurate universal freedom in the United States, the Association for the Study of African American Life and History has selected “African Americans and the Civil War” as the 2011 National Black History Theme. We urge all Americans to study and reflect on the value of their contributions to the nation, and to our community.
NOW THEREFORE I, CARLETON E. CAREY, SR., Mayor of the City of Dover, Delaware do hereby proclaim February 2011 as BLACK HISTORY MONTH and encourage all citizens to celebrate the contributions of African-Americans to our great society.
UTILITY COMMITTEE REPORT - JANUARY 10, 2011
The Utility Committee met on January 10, 2011 with Chairman Ruane presiding.
Proposed Ordinance #2011-01 - Amendment to Appendix B - Zoning, Article 5 - Supplementary Regulations, (New) Section 20 - Solar and Small Wind Energy Systems
Mrs. Ann Marie Townshend, Director of Planning and Community Development, presented Proposed Ordinance #2011-01 - Amendment to Appendix B - Zoning, Article 5 - Supplementary Regulations, (New) Section 20 - Solar and Small Wind Energy Systems, for the Committee’s consideration.
Mrs. Townshend provided members with a revised version of the Proposed Ordinance and noted that changes were indicated in red. She advised members that the revisions resulted from a meeting that staff held with Councilman Eugene Ruane, Mrs. Judy Diogo (Central Delaware Chamber of Commerce), Mr. Phil McGinnis (representing area Realtors), and Mr. John Paradee (attorney representing an interested client) on January 4, 2011. Mrs. Townshend reminded members that the 2008 Comprehensive Plan called for the development of code amendments that would encourage renewable energy. She explained that the Proposed Ordinance would allow solar energy systems and small wind energy systems as accessory uses within all zoning and non-residential zones, as well as public health, safety and welfare, and add definitions for such systems to the Zoning Ordinance.
Responding to Mr. Ruane, Mrs. Townshend confirmed that the Proposed Ordinance was drafted after reviewing related State of Delaware legislation (Chapter 80 of Title 29, Section 8060) and researching the matter through the National Planning Organization and other jurisdictions.
In response to concerns of Mr. McGiffin regarding the prohibition of free-standing solar panels in residential areas, Mrs. Townshend stated that if members wished to delay action, staff could research the standards for residential areas. She indicated that there are concerns with intrusiveness and explained the importance of establishing set-back requirements.
Mr. Bonar relayed concerns with the types of screening that would be required and requested that staff provide details regarding the term “visually screened.”
Mr. Phil McGinnis, McGinnnis Commercial Real Estate Company, 555 E. Loockerman Street, stated that he chairs the Public Policy Committee for the Kent County Association of Realtors and advised members that he worked with the State Legislature for three (3) to four (4) years on the associated State statute and supports the revised Proposed Ordinance presented by staff. In considering the specific issues regarding the height of the turbine and screening for the City of Dover, he noted that properties are typically 30 to 50 feet wide and, therefore, could not support a wind turbine. Mr. McGinnis stated that, as a result, solar panels would be the only option for renewable energy. In terms of screening, he explained that reflective lighting off solar panels is a potential problem; however, he stated that he was convinced that such concerns have been satisfied in the revised Proposed Ordinance.
Mr. John Paradee of the law firm Prickett, Jones, and Elliott, 11 North State Street, indicated that representatives of Arca Advisors were present, as well as Mr. Don Burg and Mr. Craig Frater, principals of his client, CD Realty Advisors. He commended the City for its support of alternative renewable energy, as expressed through the Comprehensive Plan and consideration of the Proposed Ordinance. Mr. Paradee explained that CD Realty Advisors owns several parcels at the Silver Lake Business Park and that, although many of the parcels have been improved with buildings which have been leased to various users, there is one (1) parcel that remains vacant. Due to current market conditions, he stated that his clients have been exploring other options for the use of this property. Mr. Paradee noted that the firm’s desire is to put a ground-mounted solar energy system on the vacant parcel to generate energy to support and satisfy the needs of one (1) of its buildings. In order for this concept to work, he stated that more than 30% of the lot area would be required, which the Proposed Ordinance prohibits. He also relayed concern with establishing a threshold that allows for a project to be permitted as a conditional use, explaining that businesses and their financial institutions would require certainty. Mr. Paradee requested that ground-mounted solar energy systems be a permitted use in non-residential areas, not an accessory use. He assured members that, although he appreciates the City’s consideration of both solar and wind energy systems, his clients have no interest in wind energy systems.
Responding to Mr. Ruane, Mr. Paradee stated that, since the meeting held on January 4, 2011, he had further opportunity to discuss the matter with his clients and was made aware of their concerns regarding the restrictions related to lot coverage.
Mr. Brian Yeager, representative of Arca Advisors, provided members with a Statement from the Delaware Solar Energy Coalition regarding the Proposed Ordinance and reviewed Ground Mount Solar Array Quick Facts. Due to the important role that manufacturing, labor, installation, and financing play in solar pricing, Mr. Yeager explained that restricting the use of lot area would be disincentivizing.
Mr. Donald Burg, CD Realty Advisors, 200 S. Broad Street, Philadelphia, PA, relayed concerns regarding merging properties to attain the required square footage and the need for parcels to remain separate for tax records and financial purposes. For purposes of the Proposed Ordinance, he suggested that parcels which are contiguous and have common ownership be considered one (1) parcel. It was his feeling that this proposal would eliminate many of the issues with ancillary versus permitted uses.
Responding to Mr. McGiffin regarding the sale of one (1) of the properties, Mr. Burg stated that the properties would either have to be sold together or the array removed, suggesting that if the properties were sold in a manner that “breaks” the contiguous and common ownership, the result would be array removal.
Mrs. Townshend advised members that the State legislation indicates that “any wind energy system shall be buffered from any properties or structures included on the historic registry.” She explained that her concerns with principal use or permitted use within non-residential and commercial zones, from a land planning perspective, are relative to the potential long-term implications on the character of the City’s commercial areas.
In response to Mr. Ruane, Mrs. Townshend stated that there are other precedents in the Dover Code that provide consideration of properties under common ownership and that staff could research this concept and include an amendment to the Proposed Ordinance. However, she noted that the revised Proposed Ordinance indicates that the ground-mounted solar energy system shall not be located between the principal structure and the street.
Having recently visited the National Renewable Energy Laboratories in Denver, Colorado, Mr. Bonar reminded members that there is emerging technology that is very close to becoming a reality which will eliminate noticeability of such solar energy systems.
The Committee recommended that action be deferred until the next Committee meeting to allow time for staff to address the concerns relayed.
By consent agenda, Mr. Bonar moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote.
Annual Engineering Consultant’s Report on the Operation and Maintenance of the Electric System - Fiscal Year 2010
Due to time constraints, the Committee deferred consideration of the Annual Engineering Consultant’s Report on the Operation and Maintenance of the Electric System for Fiscal Year 2010 until the next Committee meeting.
Development Projects - Performance and Maintenance Bonding Concerns
Mr. Anthony DePrima, City Manager, advised members that, as part of a shared performance goal, the City Manager, the Public Services Manager, and the Director of Planning and Community Development conducted a series of four (4) internal meetings to brainstorm various ideas to address concerns raised about performance and maintenance bonding in subdivisions, site plan compliance, ensuring the functionality of homeowners’ associations (HOAs), and other development project issues. As a result of these meetings, which were held in October, November, and December of 2010, he stated that eight (8) specific issues/concerns were identified.
Mr. DePrima assured members that the list is not comprehensive and that staff would welcome additional ideas. He requested guidance for prioritizing, noting that all issues/concerns could not be addressed in a year. He also assured members that staff’s intention is to reach out to interest groups, development associations, communities, and homeowner groups to obtain feedback, explaining that presenting these development projects to the Committee is one (1) of the first steps in the process.
Mr. Scott Koenig, Public Services Manager, reviewed the Development Project concerns and suggestions developed by staff.
Mr. Ruane suggested that the list of Development Project concerns and suggestions be provided to members in electronic form and, at the suggestion of Mr. DePrima, that members rank the projects in priority and provide a suggested timeline to be considered by the Committee during their next meeting.
The Committee recommended that staff provide the list of Development Projects to members for their review and prioritization to be considered by the Committee during their next meeting.
By consent agenda, Mr. Bonar moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote.
Annualized Comparison of Utility Rates
Due to time constraints, Mr. Ruane requested that the Annualized Comparison of Utility Rates be deferred until the next Committee meeting.
The Committee deferred the Annualized Comparison of Utility Rates until the next Committee meeting.
Review of Utility Related Capital Investment Plan (CIP) (Electric and Water/Wastewater) (November)
Due to time constraints, Mr. Ruane requested that the Review of the Utility Related CIP for Electric and Water/Wastewater for November 2010 be deferred until the next Committee meeting.
The Committee deferred the Review of the Utility Related Capital Investment Plan (CIP) for Electric and Water/Wastewater for November 2010 until the next Committee meeting.
By consent agenda, Mr. Bonar moved for acceptance of the Utility Committee Report, seconded by Mrs. Williams and carried by a unanimous roll call vote.
LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - JANUARY 10, 2011
The Legislative, Finance, and Administration Committee met on January 10, 2011 with Chairman Leary presiding.
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.
Local Area Network (LAN) Analyst - Information Technologies (IT) Department
Mr. Anthony DePrima, City Manager, reviewed a request to recruit for a Local Area Network (LAN) Analyst for the Information Technologies (IT) Department. He noted that Mr. Andy Siegel has assumed the position of Acting IT Director; however, Mr. Siegel continues to serve as a LAN Analyst. Mr. DePrima explained that the department currently has one (1) additional employee serving in this capacity.
Responding to Mr. McGiffin, Mr. DePrima stated that it was decided to postpone filling the IT Director position until FY 12 in an effort to conserve funds. He stated that if someone other than Mr. Siegel is ultimately selected to fill the position of IT Director, there will be a total of three (3) LAN Analyst positions.
In response to Mr. Shevock, Mr. DePrima stated that the Request to Recruit Form should have included budgetary details and assured members that funds are available in the budget for the position.
The Committee recommended approval of the request to recruit for a Local Area Network (LAN) Analyst for the Information Technologies Department, as recommended by staff.
By consent agenda, Mr. Bonar moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote.
Presentation - Public Financial Management - Final Results of 2010 Electric Revenue Bond Refunding (Geoffrey Stewart)
Mrs. Donna Mitchell, Controller/Treasurer, introduced Mr. Geoffrey Stewart, Senior Managing Consultant, Public Financial Management (PFM). She stated that Mr. Stewart serves as the City’s financial advisor and assists with all of the City’s bond financing.
Mr. Stewart reviewed a Financial Advisory Memorandum, which provided information regarding the very successful November 2010 refinancing of the City’s outstanding electric revenue bond debt. He reminded members that the City had approximately $11.4M of outstanding bonds that were issued to build assets in the electric system. The average interest rate on the outstanding loan was 5%. Mr. Stewart stated that new bonds were issued to pay off the old bonds at a substantial savings, noting that the true interest cost is 1.23%. In terms of dollars and cents, he stated that, in gross, over the life of the remaining loan, which extends until 2016, the City will realize over $3M less interest in debt service savings and the net present value savings for the City will be over $1M.
Responding to Mr. Ruane, Mr. Stewart stated that the electric utility is rated Aa2 by Moody’s and A+ by Fitch. He stated that he could provide members with details regarding the metrics that are reviewed and how the City’s utility performance compares to its peer groups. He suggested that the City exercise caution by maintaining healthy reserve levels and noted that the transfer of funds to the General Fund is a metric that is considered when ratings are established.
The Committee recommended acceptance of the Report on the Final Results of the 2010 Electric Revenue Bond Refunding submitted by Public Financial Management.
By consent agenda, Mr. Bonar moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote.
Authorization to Purchase - Vehicle Computers/In-Car Camera Systems
Police Chief James Hosfelt submitted a request to purchase vehicle computers/in-car camera systems as an allowable Sole Source Procurement. He indicated that a different configuration of computers, in-car camera equipment, and associated parts/accessories is required in order to fit within the smaller space constraints of new and future police vehicles. Chief Hosfelt explained that the new equipment will minimize the negative impact of vehicle space constraints on officer safety and reduce operational and maintenance costs for the City in the long term.
Police Chief Hosfelt explained that a combination of budget and grant funds will be utilized for this purchase. He noted that budgeted funds programmed for annual recurring mobile data computer (MDC) replacements ($23,400.00), as well as funds for vehicle equipment replacement ($11,400.00), will be combined with available Justice Assistance Grant funding ($37,616.10) to complete this purchase (total of $72,416.10). In addition, he stated that the Department would like to continue to purchase these systems in future years to replace the current configuration of equipment in vehicles through the normal vehicle replacement cycle. Chief Hosfelt noted that, as the process continues, savings in maintenance costs will be realized, as the number of vendors needed to provide maintenance will be minimized.
Staff recommended approval of the request from the Police Department to purchase the new configuration of computers and in-car cameras for its vehicles, as well as the continued purchase of these items in future years as part of the normal, recurring replacement cycle.
The Committee recommended approval of staff’s recommendation for the expenditure of $72,416.10 to purchase the vehicle computers/in-car camera systems.
By consent agenda, Mr. Bonar moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote.
Accounting Procedures for Federal Forfeiture Funds
During their meeting of August 23, 2010, members were provided a briefing regarding the Police Department’s Criminal Investigation Fund, which was being maintained by the Police Department without being accounted for in the City’s records. Members were assured that the Police Department would work with the Finance Department to transfer all records and documentation to bring the Fund under the control of the Finance Department. Members accepted the Criminal Investigation Fund Report, as delivered by the Police Chief, and anticipated an update when the administrative adjustments were completed. City Council approved this action during their Regular Meeting of September 13, 2010.
Mrs. Donna Mitchell, Controller/Treasurer, reported that Chief Hosfelt and the Police Department staff worked cooperatively with the Finance Department to close out the separate bank account and deposit the cash balance into a City account, which is currently used for Law Enforcement Grants. She explained that all activity is now being processed through the City’s accounting system in compliance with all policies and procedures. Mrs. Mitchell noted that the previous bank account was being reconciled, financial reports were being prepared by the Police Department, and controls were in place to prohibit unauthorized spending per the Department’s internal policies; however, these activities were not shared with anyone outside of the Police Department. She advised members that Chief Hosfelt agreed to a compliance review conducted by the City auditor, Faw, Casson & Company.
Mrs. Mitchell stated that staff recommended that annual budgets be established for Police Grants and all other Criminal Investigation Funds and that all estimated receipts and planned disbursements be adopted through the budget process and accounted for in the same manner as all other funds to insure transparency and accountability. She explained that there was a general understanding that, through the use of the City’s budgeting and financial systems, all policies and procedures would be adhered to. Mrs. Mitchell noted that, until such time as a budget can be established, the Finance Department will issue a summary of activity for these funds in conjunction with the Finance Department’s monthly report.
The Committee recommended acceptance of the accounting procedures for the Federal Forfeiture Funds, as recommended by staff.
By consent agenda, Mr. Bonar moved for approval of the Committee’s to accept the accounting procedures for the Federal Forfeiture Funds (Exhibit #1), seconded by Mrs. Williams and carried by a unanimous roll call vote.
Proposed Ordinance #2010-01 - Chapter 102 - Taxation, Article I - In General, Section 102-1 - Annual Valuation and Assessment and Proposed Companion Ordinance #2011-02 - Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, (New) Section 102-117 - Construction of New Facility
Ms. Cheryl Russell, Tax Assessor, reviewed proposed Ordinance #2010-01, amending Chapter 102 - Taxation, Article I - In General, Section 102-1 - Annual Valuation and Assessment of the Dover Code, and proposed companion Ordinance #2011-02, amending Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, (New) Section 102-117 - Construction of New Facility.
During their meeting of January 11, 2010, members were provided Proposed Ordinance #2010-01, which would revert the ordinance to its original intent and strike out Mayor Carey’s amendments, which were approved by City Council on December 14, 2009. The purpose of the amendment was to follow the recommendations resulting from a June 2008 audit performed by Mr. Frederick Chmura and Mr. William Ford of the International Association of Assessing Officers (IAAO). The Committee recommended that the City Assessor’s Office, the City Manager’s Office, and the real estate community meet to attain a workable solution within 90 days. This recommendation was approved by City Council during their Regular Meeting of January 25, 2010.
Ms. Russell advised members that, after several meetings with the real estate community, a consensus was reached regarding the recommendation for approval of Proposed Ordinance #2010-01, with the stipulation that a companion Ordinance, #2011-02, be adopted. She explained that Proposed Ordinance #2011-02 would allow for an application for abatement of real estate taxes.
Staff recommended adoption of Proposed Ordinances #2010-01 and #2011-02.
In response to Mr. Ruane, Ms. Russell estimated that there are currently four (4) or five (5) commercial projects that would be eligible for the abatement; however, she anticipated their completion prior to July 1, 2011.
Responding to Dr. Jones, Ms. Russell stated that an abatement would apply only to new construction on the property.
The Committee recommended adoption of Proposed Ordinances #2010-01 and #2011-02.
By consent agenda, Mr. Bonar moved for approval of the Committee’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote. (The First Reading of the ordinances will take place during the latter part of the meeting.)
By consent agenda, Mr. Bonar moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mrs. Williams and carried by a unanimous roll call vote.
QUARTERLY REVENUE REPORT
Mrs. Terry Tieman, Senior City Administrator, reviewed the Quarterly Revenue Report as of December 31, 2010.
Mrs. Russell requested that staff use larger print when preparing this report in the future.
Mr. Leary moved for acceptance of the Quarterly Revenue Report as of December 31, 2010, seconded by Mr. Bonar and unanimously carried.
PROPOSED RESOLUTION NO. 2011-01 - AUTHORIZING THE ISSUANCE AND SALE OF UP TO $765,060 SEWER REVENUE BONDS OF THE CITY OF DOVER FOR THE CONSTRUCTION OF CERTAIN SEWER PROJECTS AND AUTHORIZING ALL NECESSARY ACTION IN CONNECTION THEREWITH
Mrs. Donna Mitchell, Controller/Treasurer, briefly reviewed Proposed Resolution No. 2011-01, authorizing the issuance and sale of up to $765,060 in Sewer Revenue Bonds of the City of Dover for the construction of certain capital improvement projects for the sewer system, including, but not limited to: 1) Fox Hall Pump Station, 2) Lepore Road Pump Station, and 3) Heatherfield Force Main.
Mrs. Williams moved for the adoption of Resolution No. 2011-01. The motion was seconded by Mrs. Russell and, by a unanimous roll call vote, Council adopted the following Resolution:
A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF UP TO $765,060 SEWER REVENUE BONDS OF THE CITY OF DOVER FOR THE CONSTRUCTION OF CERTAIN SEWER PROJECTS AND AUTHORIZING ALL NECESSARY ACTION IN CONNECTION THEREWITH
WHEREAS, the City of Dover (the “City”) is authorized pursuant to Volume 52, Delaware Laws, Chapter 111, as amended by Volume 57, Delaware Laws Chapter 340, Volume 36 Delaware Laws, Chapter 158, as amended, and the City Charter (collectively the “Enabling Acts”) to issue revenue bonds for the purpose of financing the extension, reconstruction or improvements to the City’s water, sewer and electric systems;
WHEREAS, pursuant to the Enabling Acts, the City adopted a Bond Resolution on February 27, 1989 (the “Bond Resolution”) providing for the issuance of water and sewer revenue bonds and pursuant to the Bond Resolution the City has issued and there remains outstanding its $7,980,000 Water and Sewer Revenue Bonds, Series 2003 and its $5,942,481 Water and Sewer Bonds, Series 2009 (the “Outstanding Bonds”);
WHEREAS, the City desires to issue additional revenue bonds pursuant to the Bond Resolution on a parity with the Outstanding Bonds;
WHEREAS, the City has approved certain capital improvements to its Sewer System and desires to issue its additional parity revenue bonds pursuant to the Bond Resolution and to pay the costs of said improvements, including, but not limited to the following:
1.Fox Hall Pump Station
2.Lepore Road Pump Station
3.Heatherfield Force Main
(the “Projects”).
NOW THEREFORE THE CITY OF DOVER HEREBY ORDAINS (AT LEAST THREE FOURTHS OF THE MEMBERS OF COUNCIL CONCURRING HEREIN):
Section 1. Amount and Purpose of the Bonds. Acting pursuant to the Enabling Acts, and the Bond Resolution the City shall issue its negotiable obligations in the maximum aggregate principal amount not to exceed $765,060 to finance or refinance a portion of the cost of the construction and equipping of the Projects, an estimate of which is appended hereto as Exhibit A.
The monies raised from the sale of the Bonds (including the investment earnings thereon) after the payment of the costs of issuance, shall be expended only for the purposes authorized herein or as may otherwise be authorized by subsequent action by City Council. Authorized purposes include the costs of planning, constructing, acquiring and equipping the Projects or any portion thereof; interest on the Bonds and any interim financing during the construction period and for a period of up to one year following the estimated date of completion; the costs of issuance of the Bonds and any interim financing; the repayment of temporary loans incurred with respect to the Projects; and the reimbursement of authorized costs previously expended by the City from other funds.
Section 2. Terms of the Bonds. The Bonds shall be sold to the Delaware Water Pollution Control Revolving Fund (the “SRF Fund”) administered by the State of Delaware Department of Natural Resources and Environmental Control, Division of Water Resources pursuant to the terms of its commitment letter dated January 17, 2011 (the “Commitment Letter”), a copy of which is appended hereto as Exhibit B, and the other terms and conditions to be contained in a Financing Agreement between the City and the SRF Fund (the “Financing Agreement”).
Section 3. Security for the Bonds. The principal, interest and premium, if any, on the Bonds shall be payable solely from the City’s Net Operating Revenue which is hereby pledged to secure the Bonds on a parity with the Outstanding Bonds. The full faith and credit of the City shall not be pledged to pay principal and interest on the Bonds.
Section 4. Rate Covenant. The City covenants that it will fix and collect rates, fees and other charges for the use of and for services furnished or to be furnished by the Sewer System, and will from time to time revise such rates, fees and other charges so that in each Fiscal year the Net Operating Revenue available to pay debt service on the Bonds will equal at least the principal and interest requirements for the Bonds. If, for any reason, the revenues are insufficient to satisfy the foregoing covenant, the City shall within ninety (90) days adjust and increase its rates, fees and other charges or reduce its Operating Expenses so as to provide sufficient Net Operating Revenue to satisfy such requirement.
Section 5. Details of the Bonds. The Mayor and City Controller/Treasurer are authorized to determine the details of the Bonds including the following: the date or dates of the Bonds; provisions for either serial or term bonds; sinking fund or other reserve fund requirements; due dates of the interest thereon; the form of the Bonds; the denominations and designations of the Bonds; registration, conversion and transfer provisions; provisions for the receipt, deposit and investment of the proceeds of the Bonds; provisions for the replacement of a lost, stolen, mutilated or destroyed Bonds; and provisions for issuing uncertificated obligations and all procedures appropriate for the establishment of a system of issuing uncertificated debt. The Bonds shall be executed by the manual or facsimile signature of the Mayor and City Controller/Treasurer, shall contain an impression of the City Seal of a facsimile thereof and shall be attested by the manual signature of the City Clerk.
Section 6. Further Action. The Mayor, the President of the City Council, the City Controller/Treasurer, the City Manager and the City Clerk are authorized and directed to take such other action on behalf of the City, as may be necessary or desirable to effect the adoption of this Resolution and the issuance and sale of the Bonds and to provide for their security and to carry out the intent of this Resolution, including the publication of notices and advertisements and the execution and delivery of customary closing certificates.
Section 7. Effective Date. This Resolution shall become effective immediately upon its passage. The City Clerk is hereby directed to publish once in a newspaper published in the City a notice in substantially the following form:
“NOTICE IS HEREBY GIVEN that the City Council of The City of Dover, Delaware on January 24, 2011 pursuant to Chapter 111, Volume 52, Delaware Laws, as amended, adopted a resolution entitled as follows:
“RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF UP TO $765,060 SEWER REVENUE BONDS OF THE CITY OF DOVER FOR THE CONSTRUCTION OF CERTAIN SEWER PROJECTS AND AUTHORIZING ALL NECESSARY ACTION IN CONNECTION THEREWITH”
“The purpose of the issuance and sale of said bonds is to provide funds (approximately $765,060) to pay a portion of the costs of certain projects including, but not limited to: (1) Fox Hall Pump Station; (2) Lepore Road Pump Station, and (3) Heatherfield Force Main.
“Any action or proceeding to contest the validity of said resolution or any of its provisions must be commenced within thirty (30) days after publication of this notice. After expiration of such period of limitation, no right of action or defense founded upon the invalidity of said resolution or any of its provisions shall be asserted, nor shall the validity of said resolution or any of its provisions be open to question in any court upon any ground whatsoever, except in an action or proceeding commenced within such period.”
By order of the City Council of the City of Dover.
ADOPTED: JANUARY 24, 2011
LABOR CONTRACT SETTLEMENT - IBEW LOCAL 1238
Mr. Anthony DePrima, City Manager, reviewed the City of Dover and IBEW Local #1238 Labor Contract Settlement for July 1, 2010 through June 30, 2013. He noted that the IBEW membership approved the settlement on January 5, 2011.
Dr. McGlumphy referred to increases that have been provided to these City employees and those that are proposed in the contract settlement and relayed concerns with the City continuously providing such salary increases in view of the current economic climate.
Mr. McGiffin moved for approval of the IBEW Local #1238 Labor Contract Settlement for July 1, 2010 through June 30, 2013, as presented. The motion was seconded by Mr. Salters.
Responding to Mr. Ruane, Mr. DePrima confirmed that all associated costs are included in the Electric Fund budget. In addition, Mrs. Kim Hawkins, Human Resources Director, explained that there is a cost savings of approximately $21,000 in this year’s budget. Noting that the contract involves electrical workers, Mrs. Hawkins advised members that Delmarva Power employees received non-base compensation equivalent to 2% for this fiscal year and will be provided a 2% increase each year for the next two (2) years of their contract. Mr. Ruane noted that the proposed contract will ensure that the City remains competitive as an employer.
The motion for approval of the IBEW Local #1238 Labor Contract Settlement for July 1, 2010 through June 30, 2013, as presented, was carried by a roll call vote of six (6) yes and three (3) no (Dr. McGlumphy, Mr. Leary, and Mrs. Williams).
EVALUATION OF BIDS - ROUTE 13 SEWER INTERCEPTOR UNIT COST TRUE-UP
Mr. Anthony DePrima, City Manager, advised members that the Route 13 Sewer Interceptor was recently completed and is now in operation. He reminded members that the original bid form contained unit prices that were based on estimated quantities for a specific material or service to be provided by the contractor; however, he indicated that adjustments were needed. For example, Mr. DePrima stated, due to the historic high water table at the start of the project, the contractor had to provide more well pointing services than anticipated in order to properly install the sewer pipe. Mr. DePrima noted that the estimated number of days specified in the bid form was 70 days; however, the contractor provided well pointing for a total of 261 days; therefore, per the contract, the City is required to pay the difference of 191 days at the unit price of $750.00 per day, for a total of $143,250. He noted that other contingency items included dewatering, additional undercut excavation, removal of unsuitable fill, the installation of additional borrow material, and credits for work not required. Members were given the opportunity to review a financial summary of the project, including a Tracking Report and details regarding adjustments to the contract items.
Staff recommended approval of the Unit Cost True-up/Change Order submitted by Eastern States Construction Services, Inc., in the amount of $275,890 for the finalization of overages/underages of the unit cost items from the original bid form dated November 18, 2009.
Mr. DePrima assured members that this would be the final true up/change order for the installation of the interceptor since the project is complete. He noted that geotechnical testing was performed during the design phase of the project and, based on those tests, the engineer developed estimates for the dewatering contract items. Mr. DePrima explained that following those tests, the City had a sharp rise in the groundwater level, resulting in an underestimation of the unit quantities.
In addition, Mr. DePrima advised members that the contractor is installing the Delaware Technical and Community College/Delaware State University force main under a change order approved by Council on October 11, 2010, and the contract will be closed once this is complete. He noted that the total amount budgeted for this project was $3,201,480 and the actual project cost is estimated at $2.9M.
Responding to Mrs. Williams, Mr. Ron Lunt, Public Utilities Director, stated that the majority of the “true-up” is related to water removal. He advised members that a geotechnical study was conducted well in advance of the project to determine the types of soils and water tables in order to develop the specifications. Mr. Lunt advised members that after the study was complete, and while the project was under construction, the water table rose three (3) feet due to the amount of rain the City received in the spring, resulting in a substantial increase in the cost of dewatering.
In response to Mrs. Williams, Mr. Lunt indicated that the mis-projection of soil types was due to the effects of the water in the soil. He confirmed that this request does not reflect a mistake made by the City, its contractors, or engineering firms, but is the result of circumstances that were “out of anyone’s control” which exacerbated the unit costs for soil removal.
Mr. Bonar moved for approval of the Unit Cost True-up/Change Order submitted by Eastern States Construction Services, Inc., in the amount of $275,890, for the finalization of overages/underages of the unit cost items per the original bid form dated November 18, 2009. The motion was seconded by Mr. McGiffin and carried by a unanimous roll call vote.
CONFIRMATION OF POLICE PENSION ELECTION - RET. LT. TIMOTHY P. MULLANEY, SR. - THREE (3) YEAR TERM TO EXPIRE JANUARY 31, 2014
Retired Lieutenant Timothy P. Mullaney, Sr.’s term of office on the Police Pension Board will expire on January 31, 2011. Pursuant to Section 18-47 of the Pension Plan, notice of an election was given to all plan members. Only one nomination was received; therefore, no election was held. Chief Hosfelt nominated Retired Lieutenant Timothy P. Mullaney, Sr. to serve a three (3) year term, to expire on January 31, 2014.
By consent agenda, Mr. Bonar moved for approval of the nomination of Retired Lieutenant Timothy Mullaney, Sr. to serve on the Police Pension Board, with a three (3) year term to expire on January 31, 2014. The motion was seconded by Mrs. Williams and carried by a unanimous roll call vote.
FIRST READING - PROPOSED ORDINANCES
Council President Hogan reminded the public that copies of the proposed ordinances are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Final action by Council on the proposed ordinances will take place during the Council Meeting of February 14, 2010.
In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Proposed Ordinances, as read by the City Clerk, by title only, as follows:
?Ordinance #2010-01 - Chapter 102 - Taxation, Article I - In General, Section 102-1 - Annual Valuation and Assessment
?Ordinance #2011-02 - Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, (New) Section 102-117 - Construction of New Facility
FIRST READING - PROPOSED ORDINANCE #2011-03 - 2011 AMENDMENTS TO THE 2008 COMPREHENSIVE PLAN
Council President Hogan reminded the public that copies of the proposed ordinance are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Since the ordinance is an amendment to the Comprehensive Plan, a public hearing is required. Staff recommended referral of the amendment to the Planning Commission on Tuesday, February 22, 2011 at 7:00 p.m., and that a public hearing take place during the Council Meeting of Monday, March 14, 2011, at 7:30 p.m., at which time final action by Council will take place.
By motion of Mr. McGiffin, seconded by Mr. Leary, Council, by a unanimous roll call vote, referred the request to the Planning Commission for a public hearing on Tuesday, February 22, 2011 at 7:00 p.m. and set a public hearing before City Council on Monday, March 14, 2011 at 7:30 p.m.
In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Proposed Ordinance, as read by the City Clerk, by title only, as follows:
?Ordinance #2011-03 - Amending the 2008 Comphrehensive Plan by Replacing Table 12-1: Land Use and Zoning Matrix and Map 12-1: Land Development Plan
REZONING REQUESTS/FIRST READINGS
Requests were received to rezone the following properties. Prior to amending the zoning ordinances and zoning map of the City of Dover, a public hearing is required. Staff recommended referral to the Planning Commission on Tuesday, February 22, 2011, and that a public hearing be set before City Council for Monday, March 14, 2011, at 7:30 p.m.
Proposed Ordinance #2011-04 - Property Located at Grove Street and Railroad Avenue, Owned by College Road Management, Inc., Kent Storage Facilities, LLC, and Loralex Company, LLC
A rezoning request for property located at Grove Street and Railroad Avenue, owned by College Road Management, Inc., Kent Storage Facilities, LLC, and Loralex Company, LLC, consisting of four (4) parcels totaling 30.78+/- acres. The property is currently zoned M (Manufacturing) and the proposed zoning is RG-5 (General Residence Zone for Mid-Rise Apartments). The subject property is located north of College Road and east of the railroad corridor and Railroad Avenue. (Tax Parcels: ED05-067.00-02-53.00-000, ED05-067.00-02-54.00-000, ED05-067.00-02-55.00-000, and ED05-067.00-02-56.00-000; Fourth Council District; Planning Reference: Z-11-02).
By motion of Mr. Salters, seconded by Mr. Bonar, Council unanimously referred the rezoning request to the Planning Commission on Tuesday, February 22, 2011, and set a public hearing before City Council on Monday, March 14, 2011, at 7:30 p.m.
In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Proposed Ordinance, as read by the City Clerk, by title only, as follows:
PROPOSED ORDINANCE #2011-04 - AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT GROVE STREET AND RAILROAD AVENUE.
Proposed Ordinance #2011-05 - Property Located at 101-405 Doveview Drive (Doveview Apartments), Owned by CRM Mid-Atlantic, LLC and SunTrust Bank
A rezoning request for property located at 101-405 Doveview Drive (Doveview Apartments), owned by CRM Mid-Atlantic, LLC and SunTrust Bank. The property is currently zoned IO (Institutional and Office) and subject to COZ-1 (Corridor Overlay Zone) and the requested zoning is RG-5 (General Residence Zone for Mid-Rise Apartments) and subject to COZ-1 (Corridor Overlay Zone). The property is located on the north side of Forrest Avenue (Route 8) just west of the Saulsbury Road intersection. (Tax Parcel: ED05-076.07-01-30.00-000; First Council District; Planning Reference: Z-11-03).
Responding to Mr. Ruane’s concerns regarding the acceptance of an application that is in violation of the “clean hands” ordinance, Mrs. Ann Marie Townshend, Director of Planning and Community Development, stated that the requested rezoning will help to rectify code violations. She stated that staff has advised the applicant of the necessity to ensure that the building is secure and that any opened areas be boarded. Noting that the application was only recently received, she assured members that staff is in the process of reviewing this matter as part of the application review process and it is planned to resolve these concerns prior to final consideration of the rezoning.
By motion of Mrs. Williams, seconded by Mr. Salters, Council unanimously referred the rezoning request to the Planning Commission on Tuesday, February 22, 2011 at 7:00 p.m. and set a public hearing before City Council on Monday, March 14, 2011 at 7:30 p.m.
In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Proposed Ordinance, as read by the City Clerk, by title only, as follows:
PROPOSED ORDINANCE #2011-05 - AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 101-405 DOVEVIEW DRIVE
COUNCIL MEMBERS ANNOUNCEMENTS
Council President Hogan wished Councilman McGiffin a Happy Birthday (Saturday, January 29, 2011).
Mr. McGiffin reminded members to mark their calendars for June 25, 2011, for the next African American Festival.
Referring to the Route 13 Sewer Interceptor, Mr. DePrima thanked everyone involved, including businesses from which easements were obtained, noting that the project was a success and was completed under budget.
By unanimous consent, the meeting adjourned at 8:12 P.M.
TRACI A. McDOWELL
CITY CLERK
All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of January 24, 2010, are hereby approved.
CARLETON E. CAREY, SR.
MAYOR
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S:AGENDAS & MINUTESCouncil-Minutes20111-24-2011 Council.wpd
Exhibit Attached to Original Minutes and File Copy
Exhibit #1 - Accounting Procedures for Federal Forfeiture Funds dated December 29, 2010