REGULAR COUNCIL MEETING
The Regular Council Meeting was held on January 26, 2009 at 7:30 p.m. with Council President Hogan presiding. Council members present were Mr. Leary, Mrs. Russell, Mr. McGlumphy, Mr. Slavin, Mr. McGiffin, Mrs. Williams, Mr. Salters, and Mr. Ruane.
Council staff members present were Police Chief Horvath, Ms. Russell, Mrs. Mitchell, Mrs. Townshend, Fire Chief Strochine, Mr. DePrima, City Solicitor Rodriguez, Mrs. McDowell, and Mayor Carey.
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 is not in official session and cannot take formal action.
Mr. LaSpencer Saunders, 1372 W. State College Road, relayed concerns, as a nearby resident, regarding the actions taking place at the Dover Square Club. He explained that although over the past three (3) years, there has been less noise and riff-raff at the establishment, the Dover Police continue to issue citations. His concern is that the Square Club is being targeted by the Dover Police Department, particularly in light of other establishments along Loockerman Street that he has witnessed being in violation of the noise ordinance and citations are not issued.
Mr. Saunders advised members that, upon receipt of two (2) additional signatures, he will be presenting a petition, which will consist of the signatures of all residents along College Road, indicating that there are no problems at the Square Club and stating their concerns that the Club is being targeted by the Dover Police Department.
Council President Hogan requested that the petition be submitted to the City Clerk’s Office upon its completion.
The invocation was given by Chaplain Dixon, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Due to Ms. Kelly’s unavailability, Council President Hogan requested that agenda item #2A be removed from the agenda.
Mr. Slavin moved for approval of the agenda as amended, seconded by Mr. Leary and unanimously carried.
Mrs. Williams requested that item #5A(a-2), Proposed Resolution Requesting General Assembly to amend Article IV - Financial Affairs, Section 47 - General Assessment; Levy on Utility Property and Section 49A - Assessment, Payment, and Collection of Taxes for New Construction be removed from the consent agenda.
Mr. Slavin moved for approval of the consent agenda as amended, seconded by Mr. Leary and carried by a unanimous roll call vote.
ADOPTION OF MINUTES - SPECIAL COUNCIL MEETING OF JANUARY 5, 2009
The Minutes of the Special Council Meeting of January 5, 2009 were unanimously approved by motion of Mr. Slavin, seconded by Mr. Leary and bore the written approval of Mayor Carey.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JANUARY 12, 2009
The Minutes of the Regular Council Meeting of January 12, 2009 were unanimously approved by motion of Mr. Slavin, seconded by Mr. Leary and bore the written approval of Mayor Carey.
PRESENTATION - RECOGNITION OF SERVICE
On behalf of members of Council, Mayor Carey presented a Certification of Recognition and a Dover Cup to Representative Nancy Wagner for the many years of continued public service she has provided to the community. The Certificate was read into the record by the City Clerk, as follows:
CERTIFICATE OF RECOGNITION
Presented to
NANCY WAGNER
for your many years of continued public service to our community.
With many thanks, from the City of Dover.
Representative Wagner relayed appreciation for the recognition and thanked those that have served as the Chief of Police and the City Manager for the City of Dover during her tenure in the General Assembly. She noted that the years of service provided by Representative Stone, Senator Still, and herself totals 50 years of service in the Delaware General Assembly. She thanked members for the recognition and wished the City well in the future, particularly with the budget issues that are facing many in this country.
PROCLAMATION - BLACK HISTORY MONTH
The City Clerk read the following Proclamation into the record:
WHEREAS, the first Negro History Week was established in 1926 by Carter Godwin Woodson, Ph.D., founder of the Association for the Study of Negro Life and History, which is known today as the Association for the Study of African-American Life and History; and
WHEREAS, Carter Godwin Woodson, Ph.D. was the second African-American ever to earn a Ph.D. at Harvard University and is acknowledged as the Father of Black History; and
WHEREAS, Dr. Woodson chose the week in February which encompassed the birthdays of Abraham Lincoln and Frederick Douglas, two significant figures in the history of African Americans, to celebrate Negro History Week; and
WHEREAS, Dr. Woodson believed that publishing scientific history about the Black race would counter racial falsehoods and prove that Africa and its people played a crucial role in the development of civilization, thus helping to put an end to race problems; and
WHEREAS, in February of 1976, fifty years after the first celebration of Negro History Week, the first Black History Month was celebrated; and
WHEREAS, during the month of February the nation proudly celebrates the accomplishments, contributions, and history of African-Americans.
NOW THEREFORE I, CARLETON E. CAREY SR., MAYOR OF THE CITY OF DOVER, DELAWARE this 26th day of January, 2009 do hereby proclaim February as BLACK HISTORY MONTH and encourage all citizens to celebrate the contributions of African-Americans to our great society.
PROCLAMATION - I LOVE TO READ MONTH
The City Clerk read the following Proclamation into the record:
WHEREAS, reading is fundamentally the backbone to education and a vital part of a child's development; and
WHEREAS, when children are encouraged to read, and are read to, they will develop the love for reading that will continue with them throughout adulthood; and
WHEREAS, we acknowledge the critical role of educators in providing the skills the children need as well as the encouragement many children need to continue reading to adapt the love of literacy that paves the way for tomorrow; and
WHEREAS, we encourage all citizens to set aside time to read, and to realize the importance of taking time out of your day to read, and how it can influence others around you.
NOW, THEREFORE, I, CARLETON E. CAREY, SR., MAYOR OF THE CITY OF DOVER, DELAWARE, do hereby proclaim the month of February, 2009, as I LOVE TO READ MONTH in Dover, Delaware, and urge all citizens to join me by encouraging children and their families to overcome the dark shadows of illiteracy as they prepare the next generation to learn to love books and reading.
UTILITY COMMITTEE REPORT - JANUARY 12, 2009
The Utility Committee met on January 12, 2009 with Chairman Ruane presiding.
STAR Community Index
During their meeting of December 8, 2008 and review of “Dover's Climate Change Plan - How Do We Benchmark and Measure Our Progress in Reducing Greenhouses Gas Emissions”, Mr. DePrima, City Manager, advised members of the STAR Community Index and, although it is in its early stages, he stated that he would obtain additional information to provide to members for their review. As indicated, staff provided members with information entitled “Introduction to the STAR Community Index”.
Mr. DePrima reminded members that many in the industry feel that it is too difficult to measure the carbon footprint and that the methodologies available are unreliable. During a recent American Public Power Association (APPA) workshop, he was made aware of a new wave of thinking regarding this issue which is similar to LEED Certification (STAR Community Index). He explained that when a new building is erected certification can be obtained at different levels. The more best practices instituted, the more points are provided and the higher level of certifications would be issued. He assured members that many communities are having difficulty establishing measurement of their carbon footprint and that the STAR Community Index was better received by the communities during the workshop.
Mr. DePrima advised members that the concept is still under production with the goal of launching this tool in January 2010. He stated that at this time, the information is being presented for informational purposes only.
Mr. Ruane relayed appreciation for staff bringing this issue forward and noted that during the next committee meeting, the State Energy Plan (final draft) will be presented for consideration. He advised members that this Plan includes reference to the benchmarking concept and suggested that members review the information, which includes recommendations regarding this matter.
Mr. Ruane requested that staff keep the committee updated on the progress of the STAR Community Index.
Review of Customer Assistance - Credit and Delinquencies
Due to an understanding of the City’s customers having stress due to the decline in the economy, Mr. Ruane requested that an update be provided on the City’s Customer Assistance, Credit, and Delinquencies, as well as the status of making this information available on the Website. As requested, staff provided members with information regarding customer assistance, credit and delinquencies, including a summary table which includes the actual number of cut-offs and credit extensions for the months of July - November for both fiscal years 2008 and 2009.
Mrs. Tieman, Senior City Administrator, advised members that there have been instances when a customer has indicated an association with a particular church and that staff has contacted that church for possible assistance. The information regarding the churches has been withheld due to their reluctance in publicizing such information. With regards to having the information provided on the Website, she stated that there has not been a desire for inclusion of their information; however, she assured members that staff will continue to work on this matter.
Mrs. Williams questioned how long it takes for customers to see the City’s costs associated with the fuel purchases. Responding, Mr. DePrima stated that although there has been a substantial decrease in oil prices, this same decrease has not been realized with power costs. Since the City purchases fuel up to three (3) years in advance, it could take up to three (3) years before such prices are realized by the City’s customers.
Responding to Mrs. Williams, Mrs. Tieman reminded members that the rates are set during the budget process, which go into effect July of each year. Concurring with Mr. Ruane, Mrs. Tieman confirmed that since July, a customer’s bill would not have increased unless their was an increase in their usage. In response to recent newspaper articles, Mr. DePrima stated that some municipalities have a monthly energy adjustment that the City does not include in their utility bills.
Mr. McGiffin noted that there are some customers that rent their residence and do not have a direct contract with the City for electricity. Responding, Mrs. Tieman stated that there are only a few of the City’s customers under this scenario and that staff makes every attempt not to penalize the tenant for the actions of the landlord.
Mr. Ruane thanked staff for providing the information and noted that no policy changes are being requested at this time.
Dover’s Recycling Contract and Curbside Program Update
Mr. Koenig, Public Services Manager, advised members that the City of Dover has a contract agreement for the curbside recycling program with DSWA which expires on February 15, 2010. The City pays $2 per household per month for the service. He stated that there is a right to termination clause in the agreement which gives either party (DSWA or the City) the right, at anytime, to terminate the Contract Agreement without liability upon sixty (60) days written notice. Mr. Koenig stated that the only discussion he is aware of regarding future pricing is from DSWA indicating that the $2 per month fee would likely increase to $6 per month upon the expiration of the current agreement. The discussion regarding an increase to $6 per month occurred prior to December 12, 2007 and reflected DSWA opinion of the real cost to operate the curbside service at that time. He advised members that the previous discussion from 2007 regarding the $6 per month rate does not reflect conditions associated with the current economic environment.
Mr. Koenig advised members that one of the goals of the department for this year was to improve the rate of participation in the Curbside Program. As a result, staff has been implementing a “soft” roll out program over the past few months with respect to the expansion of the curbside recycling program. As of December 23, 2008, this program has been rolled out to six (6) major subdivisions, totaling 639 units. The largest of these subdivisions was Crossgates/Mayfair. There are 423 households in Crossgates/Mayfair. Generally, there has been very little feedback from the roll outs. According to the City’s records, only eight (8) households have refused service in Crossgates/Mayfair. In addition, four (4) wanted to keep their 35-gallon container rather than receive a 95-gallon container. There may be a few others that we will need to discontinue or modify their service level.
Mr. Koenig reminded members that the Curbside Program began in September 2008. As of today, 927 cans have been delivered and another 85 cans are scheduled for delivery. Of the 927 cans, 371 were already customers, which indicates that there may have been an upgrade in their service. At the end of December, there were 2,985 customers total. The City began the budget year at 2,414, which is an increase of 571 customers.
Mr. Koenig advised members that every month this fiscal year, there has been over 100,000 pounds of recycling. As a result of the soft roll-out, he stated that there should be a significant increase in the amount of poundage of recycling.
Mr. Koenig reiterated that the Recycling Program is completely voluntary.
Mr. Ruane relayed appreciation for staff’s efforts and encouraged their continuation in this regard.
At the request of Mr. Ruane, Mr. Koenig explained the “Pay as You Throw” Program, which has been included in the City’s Capital Improvement Projects. He stated that one of the ways to encourage recycling is to propose ways that provide financial incentives. A “Pay as You Throw” trash utility is designed to encourage customers to recycle more and reduce the amount of waste at the curbside. Another department goal this year is to evaluate the feasibility of such a utility and bring a proposal, late in the year, to Council to review the parameters involved for creating such a utility and a review of its pros and cons.
In response to Mr. Snaman, Mr. Koenig stated that there has not been any consideration given to including commercial markets that have private trash collection for the “Pay as You Throw” utility. He explained that, although light commercial trash can be picked up by the side arm loaders, the front end loaders are necessary for establishments such as restaurants and apartment complexes. This is not a market that the City should consider for the “Pay as You Throw” utility.
Mr. Koenig stated that staff will continue to evaluate the “Pay as You Throw” utility and that a draft proposal will be submitted to the committee later this year. He reminded members that information regarding the Curbside Program is included in the City Manager’s Report each month.
By consent agenda, Mr. Slavin moved for acceptance of the Utility Committee Report, seconded by Mr. Leary and carried by a unanimous roll call vote
LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - JANUARY 12, 2009
The Legislative, Finance, and Administration Committee met on January 12, 2009 with Chairman Slavin presiding.
Proposed Resolutions - Requests to General Assembly to Amend City of Dover Charter
As a part of the City’s Charter Review Committee’s recommendations, Mr. Slavin stated that proposed Resolutions will be presented requesting the General Assembly to amend the City Charter. At this time, there are two (2) issues for the committee’s consideration, as follows:
Article IV - Financial Affairs, Section 50 - Debt Limit
Mrs. Mitchell, Controller/Treasurer, advised members that an amendment to Article IV - Financial Affairs, Section 50 - Debt Limit of the City Charter is to eliminate the requirement for a referendum based on a set dollar amount but rather a percentage of assessed taxable value. She explained that the amendment would also eliminate the need for future requests to amend the Charter due to inflationary or deflationary changes in the taxable assessed values of real estate. The amount available for debt issuance would always correlate to the assessed taxable value. However, she indicated that the amendment would continue to provide a referendum requirement when the debt issuance would exceed one-fourth (1/4) of one percent (1%) of the taxable assessed value of real property.
Staff recommended approval of the amendment to the City of Dover Charter - Section 50, Debt Limit. In order to amend the City Charter, a Resolution must be adopted requesting the General Assembly to amend the City Charter. The proposed amendment would remove the $3M limit on borrowing without a referendum, while maintaining a threshold of 1/4 of one percent (.25) of taxable assessed value of real property of aggregate principal amount.
Referring to the proposed legislation, Mr. Shevock noted that line 47 indicates “one percent” and that line 74 indicates “five percent”. Responding, Mrs. Mitchell indicated that both lines should reflect “one percent”. City Clerk’s Office Note: The percentage stated in line 47 (one percent) refers to the total aggregate principal amount of bonds outstanding to finance public storm sewers, streets and appurtenances. The mayor and council is authorized and empowered to borrow on the faith and credit of the City of Dover sums of money for such purposes as may be deemed necessary and proper by the mayor and council. The percentage stated in line 74 (five percent) refers to the aggregate of the amounts borrowed, as well as all other bonded indebtedness for which the full faith and credit of the City of Dover has been pledged (total of debt) and should remain at five percent. On July 12, 2007, the aggregate amount of debt was reduced from 25% to 5% of the total assessed value of real property.
Responding to Mr. McGlumphy, Mrs. Mitchell stated that the borrowing limit, which is currently set at $3M, would increase to over $7M based on today’s assessed values. Mr. McGlumphy relayed concern that the City would be potentially limiting the public’s voice, although he understands the difficulty with the referendum process.
Mr. Ruane explained the transparency involved with a bond issuance and reminded members of the public process and fiscal responsibility required with a bond issue.
The committee recommended approval of staff’s recommendation to amend Section 50 - Debt Limit of the City of Dover Charter.
By consent agenda, Mr. Slavin moved for approval of the committee’s recommendation, seconded by Mr. Leary, and by a unanimous roll call vote, Council adopted the following Resolution:
COUNCIL RESOLUTION NO. 2009-01
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
That the Mayor and Council have determined that the Charter of the City of Dover, Article IV - Financial Affairs, Section 50 - Debt Limit, Subsection (c)(i) should be amended by removing the $3,000,000 limit on borrowing without a referendum, while maintaining a threshold of 1/4 of one percent (.25) of taxable assessed value of real property of aggregate principal amount. Therefore, the Mayor and Council of the City of Dover respectfully request the General Assembly of the State of Delaware to amend its Charter, which amendment if adopted by the General Assembly would be as follows:
(i) To finance public storm sewers, streets and appurtenances provided that no more than 1/4 of one percent (.25%) of taxable assessed value of real property of aggregate principal amount of bonds may be issued at any one time pursuant to this clause and any new bonds issued pursuant to this clause may not cause the total aggregate principal amount of bonds outstanding at any one time to exceed one percent of the total taxable assessment for a general tax at the time such new bonds are issued; and
ADOPTED: JANUARY 26, 2009
Article IV - Financial Affairs, Section 47 - General Assessment; Levy on Utility Property and Section 49A - Assessment, Payment, and Collection of Taxes for New Construction
Ms. Russell, City Assessor, advised members that the proposed amendments to Article IV - Financial Affairs of the City Charter, Section 47 - General Assessment; Levy on Utility Property and Section 49A - Assessment, Payment, and Collection of Taxes for New Construction were based on recommendations of an audit of the City of Dover Assessor’s Office performed by Mr. Frederick Chmura, CCMA, AAS and Mr. William Ford IAO, AAS of IAAO (International Association of Assessing Officers) dated June 2008.
Ms. Russell reviewed the proposed amendments and noted that the amendments would codify the recommendations of the IAAO audit and Council actions of 2007 by eliminating the requirement that the assessor be a freeholder; increase the time for appeal from fourteen (14) days to thirty (30) days; change the title and makeup of the appeals committee; allow the assessor to value property once construction permits are issued rather than waiting for occupancy; and, eliminate supplemental billings for new construction valued at less than $25,000.
Referring to the Board of Assessment Appeals, Mr. Ruane noted that language had not been included to describe the membership requirements. He had contacted Ms. Russell earlier and she indicated assurance that once the Charter is amended, an ordinance will be developed to amend Section 102-181 - Tax Appeals Committee of the Dover Code, which will be amended to reflect the Board of Assessment Appeals and provide specifics for the Board.
Due to the recent economic situation, which has resulted in large tracts of land, multiple dwelling units, and residential, commercial, and business units being vacant, Mrs. Williams requested that staff contact the IAAO to determine if there have been any developments to address these situations.
Mr. Slavin read an e-mail submitted by Deputy City Solicitor Pepper into the record.
Regarding the Board of Assessment Appeals, Mr. DePrima stated that there is sometimes difficulty in assuring a quorum when there are only three (3) members. He suggested that members consider providing for two (2) alternates to the membership to alleviate this issue.
The committee recommended approval of staff’s recommendations to amend Section 47 and 49A of the City Charter.
Responding to Mrs. Williams, Mrs. Russell indicated that an unofficial response was received from Mr. Fred Chmura, representative of IAAO who participated in conducting the audit last June (Exhibit #1). She noted that the question has been presented to the IAAO for an official response and assured members that once the official response is received, she would forward it to members of Council.
Mrs. Williams moved for approval of the committee’s recommendation, seconded by Mr. Slavin, and by a unanimous roll call vote, Council adopted the following Resolution:
COUNCIL RESOLUTION NO. 2009-02
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
That the Mayor and Council have determined that the Charter of the City of Dover, Article IV - Financial Affairs, Section 47 - General assessment; levy on utility property, should be amended by eliminating the requirement that the assessor be a freeholder; increase the time for appeal from fourteen (14) days to thirty (30) days; and to change the title and makeup of the appeals committee. Therefore, the Mayor and Council respectfully request the General Assembly of the State of Delaware to amend its Charter, which amendment if adopted by the General Assembly would be as follows:
Sec. 47. General assessment; levy on utility property.
The City shall cause to be made a true, just, and impartial valuation and assessment of all real property within the city, locating each parcel of real property by street and number or other description. The valuation and assessment shall be made every three years by an assessor or assessors who shall be elected by the Council at its annual meeting by majority vote thereof. Before entering upon the duties of office, an assessor shall be sworn or affirmed by the Mayor to perform the duties of the assessor's office with fidelity and without favor or partiality.
Whenever Council shall direct, as set forth in the City Ordinance Section 102-1, all real property in the City of Dover shall be assessed by an outside appraiser chosen by Council every three (3) years. This assessment shall be in lieu of the valuation and assessment made by an assessor elected by Council as described hereinabove and in lieu of the assessor's duties described hereinabove.
In addition to the annual assessment, the assessor or assessors shall include supplemental assessments made annually for the purposes of (1) adding property not included in the last assessment or (2) increasing or decreasing the assessment value of property which was included in the last annual assessment.
The annual assessment date for all real property shall be January 1st of each year. The assessment of all property shall be at its true value in money as of the assessment date. True value in money shall be the fair market value.
The general assessment shall be set down by the assessor or assessors in two (2) or more copies, as the Council shall direct, and shall be delivered to the Council as soon as made. The Council shall, on the first day of April of each year, cause a copy of the general assessment to be posted in two (2) public places in the city for ten (10) days. The assessor shall notify the public of an appeal deadline of thirty (30) days from the date of general assessment posting.
The Council may direct that appeals from any assessment be heard by a committee, known as the Board of Assessment Appeals, of not less than three (3) members appointed by the Council. The Board of Assessment Appeals shall sit at a stated place and time to hear the appeals of all taxpayers dissatisfied with the assessment of their properties, shall collect such information as they consider proper and necessary, and shall report their findings
Notice of the place and time that the Board of Assessment Appeals will sit to hear appeals shall be posted with the general assessment in two (2) public places for a period of ten (10) days. Notice of the posting of the copies of the general assessment and of the place and time of the meetings of the Board of Assessment Appeals shall be published in at least one issue of a newspaper published in the city.
The assessment as revised and adjusted by the Board of Assessment Appeals or Superior Court shall be the basis for the levy and collection of taxes for the city.
The Council shall have the right to levy and collect taxes on gas mains, telephone, telegraph, communications systems, or trolley poles or other erection of like character within the limits of the city, together with the wires thereon strung; and to this end the Council may at any time direct the same to be included in or added to the general assessment.
Nothing contained in this section shall be deemed or held to invalidate or otherwise effect any assessment made prior to the approval of this section or any tax levied thereunder.
BE IT FURTHER RESOLVED That the Mayor and Council have determined that the Charter of the City of Dover, Article IV - Financial Affairs, Section 49A - Assessment, payment, and collection of taxes for new construction, should be amended to allow the assessor to value property once construction permits are issued, rather than waiting for occupancy and; eliminate supplemental billings for new construction valued at less than $25,000. Therefore, the Mayor and Council respectfully request the General Assembly of the State of Delaware to amend its Charter, which amendment if adopted by the General Assembly would be as follows:
Sec. 49A. Assessment, payment, and collection of taxes for new construction.
In the event that the mayor and council of the City of Dover desire to collect and levy taxes on newly constructed property not taxed by virtue of the city's annual assessment, the city may enact an ordinance to do so provided that: At the beginning of each quarter of each year, there shall be an increase in the valuation and assessment of all newly constructed real property within the city, locating each parcel of real property by street and number or other description. Property shall be deemed to be newly constructed when the city permits occupancy and use (Certificate of Occupancy) or when new construction is being used or occupied for its intended purpose. The said valuation and assessment shall be made by an assessor or assessors who shall be elected by council in accordance with the provisions set forth in Section 47 of this Charter.
The aforementioned assessment shall be during the months of January, April, July, and October of each year. Any new construction with an added value of $25,000 or less shall not be realized until the next annual assessment roll. The property owner may appeal any assessment for new construction in accordance with Section 47 of this Charter.
Nothing in this section contained shall be deemed or held to invalidate or otherwise affect any assessment made prior to the approval of this section or any tax levied thereunder.
All taxes shall be paid to the collector of taxes. Said taxes shall be paid within thirty (30) days of billing and those taxes not paid shall accrue a penalty in the amount of one and one-half (1½) percent per month. For every tax that is not paid as prescribed herein, the tax collector shall have all the powers conferred upon or vested in the Receiver of Taxes and County Treasurer for Kent County.
The council shall have the authority to allow errors and delinquents in the assessment.
The provisions of 9 Del. C. § 8705 and 25 Del. C. §§ 2901 through 2905, as they may from time to time be amended, shall be deemed and held to apply to all taxes laid and imposed upon the provisions of this Charter.
ADOPTED: JANUARY 26, 2009
Mr. Slavin moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mr. Leary and unanimously carried.
PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE REPORT - JANUARY 13, 2009
The Parks, Recreation, and Community Enhancement Committee met on January 13, 2009 with Chairwoman Russell presiding.
Update - Housing and Recovery Act of 2008 (Neighborhood Stabilization Program)
During their meeting of December 8, 2008, members were provided an update regarding the Neighborhood Stabilization Program (NSP). Mrs. Harvey, Community Development Director, indicated that members had relayed questions regarding leveraging resources for the NSP. As a result, representatives of the Diamond State Community Land Trust (DSCLT) Leveraging Team, Mr. Van Temple, Director of the DSCLT, as well as Mr. Matt Parks and Ms. Amy Walls of Discover Bank, reviewed a Presentation. Noting that the City of Dover has been allocated $1.5M in grant funds for the NSP, Mr. Temple requested that the City pledge the funds to the DSCLT and to designate the funds as a financing mechanism in the revised NSP Budget to the Delaware State Housing Authority (DSHA). Mr. Parks reviewed how the leveraging NSP funding works in order to increase the funds 2.5 times by investing in a New Markets Tax Credit (NMTC) Structure. Ms. Walls explained the benefits of the NMTC and Mr. Temple explained the joint venture organization structure and flow of money.
Mr. Temple advised members that meetings have been held with the other five (5) jurisdictions that have been awarded grant funding through the DSHA for the NSP. He stated that the DSCLT submitted this proposal for the entire $19.6M for Delaware at the same time the individual jurisdictions submitted their plans, and suggested that their proposal be considered as an overlay financing mechanism to multiply the awarded funds. Although DSHA was interested in the proposal, they preferred to award the funds to the usual CDBG jurisdictions where the reporting requirements and administration is already established. Therefore, he assured members that the DSHA is aware that the DSCLT is contacting the individual jurisdictions for a possible joint venture.
Responding to Mr. Lewis, Mr. Temple stated that the actual approved budget from DSHA for the State with HUD is to occur February 15, 2009. He advised members that the DSCLT needs a total of $7M in order for the plan to be cost effective. At this time, the indication from the jurisdictions has been a desire to include some, if not all, of their funds into the plan. Once the DSCLT receives enough letters of intent from the jurisdictions that total $7M or more, then the DSCLT will formalize these relationships by developing contracts.
In response to Mr. Ruane, Mrs. Harvey indicated that there have been no meetings held with the City Manager, Controller/Treasurer, or City Solicitor. She felt that the issue should be presented to the committee prior to any further meetings with City staff. Mr. Ruane suggested that the committee would not take any position regarding this matter until a review is conducted by the appropriate staff members.
Mr. Temple advised members that action of members was not expected at this time. It was his feeling that based on their presentations to the jurisdictions, there is a high degree of interest; however, this does not mean that contracts are ready to be signed. The DSCLT would like to have letters of intent within the next three (3) weeks that would total $7M, at which time, contracts would be prepared. He reminded members that there are no contracts between HUD and DSHA or between DSHA and the jurisdictions for the NSP funds. It is anticipated that such contracts would be completed late February/early March.
In addition to a review by the City Manager, Controller/Treasurer, and City Solicitor, Mr. Ruane noted that this matter is very preliminary and that there is a need for additional research by staff, including contact with the DSHA, as well as the other jurisdictions being considered, and the City’s partnerships (suballocation) for NSP funds. Responding, Mrs. Harvey requested that another meeting be scheduled with all parties involved.
Responding to Mrs. Horsey, Mr. Temple reminded members that there are two (2) deadlines associated with the NSP grant: 18 months to obligate the funds and four (4) years to expend the funds. By investing the funds in a financing mechanism up front, the 18 months is obligated, which results in an extension of the deadline. The grant funds awarded must be expended in four (4) years; however, the additional funds acquired through DSCLT would allow an extension of the program.
Mr. Parks explained that one of the purposes of the unbinding letter of intent is to give Morgan Stanley assurance that there is enough interest for them to begin pursuing a loan and an investor to purchase the credits. He advised members that without having some form of intent, there is reluctance in putting forth the time and effort required to pursue these matters.
Mrs. Russell relayed her appreciation for the presentation and requested that staff schedule another meeting to include appropriate staff and other interested parties.
In response to Mr. Lewis, Mr. Temple stated that more detailed information regarding the plans would be provided to members.
Update - CDBG Program
Mrs. Harvey, Community Development Director, reviewed the Status of the FY2007 and FY2008 CDBG Program provided to members.
During their meeting of December 8, 2008, members recommended that no further extensions would be provided to Mr. Anderson for the rehabilitation project at 301 W. Loockerman Street and that staff be authorized to send a letter to this effect. As directed, Mrs. Harvey advised members that a letter was sent to Mr. Anderson.
Referring to the Dover Interfaith Ministry to the Homeless, Mrs. Russell questioned how long it is anticipated that the funds would remain dormant before they are used. Responding, Mrs. Harvey stated that Dover Interfaith has indicated that they did not anticipate the ability to expend the funds within the grant period, which expires September 30, 2009. If the funds are not expended within the allotted time frame, the funds would be reallocated and Dover Interfaith would need to re-apply for the next fiscal year beginning in January 2010. Mrs. Harvey noted that a letter will be forwarded to Dover Interfaith explaining this requirement. She also advised members that staff has been working with other organizations in an attempt to determine if there is property that could be donated, explaining that the grant awarded to Dover Interfaith is for renovations.
Mr. Ruane suggested that the RFP information and the CDBG application be distributed to all City departments in case they have an activity that would qualify for CDBG funds.
Review of Active Recreation Plan for Woodmill Apartment Expansion (C-08-14) - Tabled by Committee on December 8, 2008
During their meeting of December 8, 2008, members reviewed an application for the Active Recreation Plan for the Woodmill Apartment Expansion and, after much discussion, tabled action to allow staff the opportunity to further review the Active Recreation Plan with the applicant. The committee removed the matter from the table.
Ms. Cornwell, Planner II, reminded members of an application for the Active Recreation Plan for Woodmill Apartment Expansion, which is a new residential development consisting of 216 apartment units - 6 apartment buildings with 36 units in each building. She stated that the proposed expansion will be located off of Commerce Way, north of North Street. The subject property consists of one parcel of land totaling 22.97+/- acres. A subdivision is a part of the development of this site that will create two (2) parcels. The residential portion will consist of 13.97+/- acres.
Since the last meeting, Ms. Cornwell advised members that the applicant’s engineer and staff met and a revised application for the Active Recreation Plan has been submitted. She reviewed the Data Sheet for Active Recreation Plan Review, which included the revised proposed active recreation areas, as well as staff’s recommendations for the revised plan and noted that the revisions have been made to the original plan as a convenience to members for a better understanding of the changes.
Referring to the need for a Tot Lot, Mrs. Russell indicated her desire for additional amenities and that it be fully equipped rather than just providing a swing.
Ms. Laura Swisky with Northpoint Engineering advised members that the existing recreation area for Woodmill Apartments, where they are proposing to add the playground, currently consists of two (2) tennis courts, a swimming pool, clubhouse, and fitness center. She noted that these activities are geared towards older children. There is a playground on the site; however, it is not located at the clubhouse. The plan includes installing playground equipment that is geared more towards children in the 5-12 year old age range. She stated that the proposed plan at the clubhouse is to complement the new development and enhance the existing development by adding a true tot lot for younger children. The idea of having it located at the clubhouse is to provide a more supervised area.
Responding to Mr. Ruane, Mrs. Swisky stated that staff’s recommendation regarding the addition of a tot lot has been accepted verbally and that she could provide this in writing.
Mrs. Russell relayed concern regarding the dual-purpose water fountain. Responding, Mrs. Swisky stated that as an alternative, a “dog only” water fountain could be installed and a water fountain for people could be placed on the outside. She further explained that the dual-purpose water fountain would be located within the dog park, which is a fenced area. Anyone that would not want to associate with dogs would not need to go into the area.
In response to Mr. Lewis, Mrs. Swisky stated that they agree to include lighting along the walkway paths, as well as along the travel ways for vehicles.
The committee recommended that a favorable recommendation for the Active Recreation Area for the Woodmill Apartment Expansion be forwarded to the Planning Commission with the understanding that the staff’s comments are concurred in by the applicant and will be pursued with special attention to their concurrence with the tot lot/playground area that is needed.
By consent agenda, Mr. Slavin moved for approval of the committee’s recommendation (Exhibit #2), seconded by Mr. Leary and carried by a unanimous roll call vote.
Information - Meeting Schedule
Due to a conflict in the current meeting schedule, Mrs. Russell advised members that Mr. McGlumphy has requested that the committee change the committee’s current meeting date to the 2nd Monday of each month. She noted that this may be a temporary schedule change (16 weeks) and that it could be reverted back.
The committee recommended that the Parks, Recreation, and Community Enhancement Committee Meeting be changed to the 2nd Monday of each month at 12:00 noon, with the understanding that this may be a temporary schedule change that could be reverted back in the near future.
By consent agenda, Mr. Slavin moved for approval of the committee’s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote.
By consent agenda, Mr. Slavin moved for acceptance of the Parks, Recreation, and Community Enhancement Committee Report, seconded by Mr. Leary and carried by a unanimous roll call vote.
QUARTERLY REVENUE REPORT
Mrs. Mitchell, Controller/Treasurer, reviewed the Revenue Report as of January 26, 2009.
Mr. DePrima advised members that a mid-year review of the City’s revenues indicates that the City will be negatively impacted by the current economic conditions. Staff is projecting a $1.6 million revenue short fall in the General Fund. The shortfall occurs because of the projected decreases in some of the City’s major revenues. Members were provided a schedule that outlines the projected changes to the General Fund revenues and expenses.
In order to balance the budget, Mr. DePrima stated that there has been a reduction in departmental operating expenses by $499,551 and vehicular and capital expenses by $840,313. In addition to these reductions, staff utilized the $236,093 in savings from the State Health Insurance Credit in November; and $40,000 from the Parkland Reserve to pay for the City’s portion of the Park Playground Equipment Project ($40,000 is funded from a State grant). Departmental operating expense reductions included salary and benefit savings in the amount of $344,007. He advised members that these savings are a result of deferred hiring for vacant positions, delayed hiring of open or new positions, or hiring staff at lower than budgeted salaries.
Mr. DePrima explained that the reductions in capital expenses include the deferment of $413,933 in vehicular purchases. These deferments are largely from Police, Grounds, and Streets Departments. In addition, $386,380 was deferred for capital construction and projects in Streets, Facilities Management, Information Technologies and Parks and Recreation Departments.
Mr. DePrima noted that these cost cutting measures did not include any layoffs or reductions of core services; however, there will be no funds available for lifeguards at Silver Lake in the spring of 2009. There will be minimal impact to swimmers as usage is very low in June.
Mr. DePrima stated that staff has taken a conservative approach in projecting revenues and cutting expenses and that the current projected General Fund Balance exceeds the required eight percent (8%) by $216,626. He explained that these excess monies may be necessary if actual revenues do not meet the revised projections. As originally planned, it was not necessary to transfer $200,000 from the Capital Asset Reserve. If revenue projections are better than anticipated, he requested authorization to restore some of the vehicular replacements with the excess carry forward balance and the capital asset reserve funds, which would be presented to Council for approval. It was his feeling that this would help keep the monies required for vehicular purchases evenly distributed in future years.
Mr. DePrima indicated that the current economic conditions are probably the most serious any of us have seen. As we proceed through the remainder of the year, he assured members that staff will continue to monitor the revenues and expenses to ensure that our budget continues to be balanced.
Responding to Mr. Ruane, Mr. DePrima stated that, although additional budgetary cuts were conducted for those department’s within the General Fund, there has also been action taken to reduce the departmental budgets within the Electric and Water/Wastewater Funds. He stated that there is not as much concern with the Electric Fund as there is with the Water/Wastewater Funds. However, the proactive action that has been taken for all departments include items such as not filling vacant positions, instituting an informal hiring freeze, elimination of out-of-state travel, etc. Staff will be presenting revised budgets for these funds as well during the budget revisions which is scheduled to be submitted to Council in February.
Mr. McGlumphy requested that, when the reductions are presented to Council, staff provide a detailed breakdown for large amounts to provide Council specifics for the total reduction.
If the economic forecast remains, Mrs. Williams requested that staff provide impact statements by departments, particularly during the upcoming budget hearings.
Mr. Slavin moved for acceptance of the Quarterly Revenue Report as of January 26, 2009 and approval of the actions outlined in the report provided by the City Manager. The motion was seconded by Mr. McGiffin and unanimously carried.
EVALUATION OF BID - RENEWAL OF MICROSOFT AGREEMENT (SOLE VENDOR)
Members were reminded that the City entered into the original three (3) year agreement in 2006 for maintaining the Microsoft Enterprise License Agreement. The purpose of having and maintaining the Microsoft Enterprise License Agreement is sixfold:
-It allows us to more accurately budget Microsoft software licenses for the City.
-It allows us to upgrade Microsoft software to newer releases at will without additional cost.
-It allows us to add additional licenses at any time during the year with the ability to true up with our inventory at the end of each year.
-It provides additional support options to reduce downtime.
-It offers additional benefits to employees in terms of training and home purchase.
-It assures us we are always in compliance with Microsoft license agreements so there are no worries of audits and fines.
Staff recommended the purchase of the renewal agreement from the State contract vendor, Insight Public Sector, Inc., for the amount of $29,055.36 each year for three (3) years, for a total costs of $87,166.08. It was noted that the quote reflects State of Delaware contract pricing with state contract vendor, Insight, Inc.
Mr. Slavin moved for approval of staff’s recommendation, seconded by Mr. McGlumphy and carried by a unanimous roll call vote.
CONFIRMATION OF POLICE PENSION ELECTION - RET. CPL. MARTIN STALLINGS - THREE YEAR TERM TO EXPIRE JANUARY 31, 2012
The term of office on the Police Pension Board of Ret. Captain Larry D. Gray expires on January 31, 2009. 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 Horvath nominated Ret. Cpl. Martin Stallings to serve a three (3) year term, to expire on January 31, 2012.
By consent agenda, Mr. Slavin moved for approval of the nomination of Ret. Cpl. Martin Stallings to serve on the Police Pension Board for a three (3) year term to expire on January 31, 2012. The motion was seconded by Mr. Leary and unanimously carried.
APPOINTMENTS - YOUTH ADVISORY COMMITTEE - ONE (1) YEAR TERMS TO EXPIRE JANUARY 25, 2010
During their Regular Meeting of January 12, 2009, Council approved the recommendation of the Parks, Recreation, and Community Enhancement Committee (meeting of December 8, 2008) that the size of the Youth Advisory Committee be modified to consist of 14 members and that all 14 applicants be accepted to serve on the Youth Advisory Committee.
By consent agenda, Mr. Slavin moved for approval of the appointments to the Youth Advisory Committee to serve one (1) year terms to expire January 25, 2010, as follows: 1) Kenny Anderson; 2) George Antoniou; 3) Amber Draper; 4) Joiya Goldsboro; 5) Meghan Harris; 6) Sarah Harris; 7) Jacob Knox; 8) Joshua Martin; 9) Melissa Micek; 10) Briana Mitchell; 11) Amanda