LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee Meeting was held on June 12, 2006, at 5:30 p.m. with Chairman Salters presiding. Members present were Mr. Hogan, Mr. Slavin (arrived at 5:35 p.m.), Mr. Shelton, and Mr. Shevock. Members of Council present were Mr. Carey, Mr. Ruane, and Mrs. Williams (arrived at 5:40 p.m.). Mayor Speed was also present (arrived 5:42 p.m.).
AGENDA ADDITIONS/DELETIONS
Mr. Hogan moved for approval of the agenda, seconded by Mr. Shelton and unanimously carried.
Electric Supply & Operations Purchasing Policy
In accordance with the Power Plant Operation and Supply contracts the City of Dover will establish all vendor accounts in the City’s name and using the City’s tax identification number. North American Energy Services (NAES) and PACE Global each have established their procurement procedures. These administrative procedures for the purchase of energy and plant operations have been reviewed and approved by the Finance Director. Pace Global is finalizing individual contracts with suppliers, so some changes may be submitted at a later date.
Staff recommended administrative approval of the procurement procedures for operation of the power plan and processing of fuel contracts under the terms of the Operation & Supply contracts.
Mr. Hogan moved to recommend administrative approval of the procurement procedures for operation of the power plant and processing of fuel contracts under the terms of the Operation & Supply Contracts (Attachment #1), as recommended by staff. The motion was seconded by Mr. Shevock and unanimously carried.
Downtown Dover BID - Assessment (Tax) Rate for Fiscal Year 2006-2007
In accordance with Appendix D, Article III, Section 9(f) of the Dover Code, City Council must adopted a Business Improvement District (BID) budget and assessment every year. Members were provided the FY 2005-2006 budget showing BID tax revenue and the expenses charged against that revenue, as well as the following tax calculation worksheet with recommended rates:
JULY 1, 2006 TO JUNE 30, 2007
|
|
ZONE 1 |
ZONE 2 |
ZONE 3 |
TOTAL |
|
Aggregate Assessments |
$32,457,900 |
$48,005,100 |
$29,654,800 |
$110,117,800 |
|
Assessment Tax Rate Per $100 |
0.0849 |
0.0362 |
0.0150 |
--- |
|
Revenue Raised |
$27,557 |
$17,378 |
$4,448 |
$49,383 |
|
% Revenue Raised |
56% |
35% |
9% |
100% |
|
Number of Parcels |
125 |
117 |
49 |
291 |
|
Average Assessment |
$220 |
$149 |
$91 |
$170 |
Note: These figures were estimated per the reassessed values. The revenue percentages by Zone are per the City of Dover Code Appendix D - Article III, Section 9(e).
JULY 1, 2005 TO JUNE 30, 2006
|
|
ZONE 1 |
ZONE 2 |
ZONE 3 |
TOTAL |
|
Aggregate Assessments |
$29,476,600 |
$55,924,600 |
$33,291,700 |
$118,692,900 |
|
Assessment Tax Rate Per $100 Assessment |
0.0849 |
0.0362 |
0.0150 |
--- |
|
Revenue Raised |
$25,026 |
$20,245 |
$4,994 |
$50,264 |
|
% Revenue Raised |
50% |
40% |
10% |
100% |
|
Number of Parcels |
121 |
113 |
49 |
283 |
|
Average Assessment |
$207 |
$179 |
$102 |
$178 |
NOTE: Information provided by the Assessor’s Office.
Mrs. Mitchell explained that this tax is assessed on businesses in the downtown area according to the three zones established in the City’s Code of Ordinances. Mr. Hogan requested that a map be attached to the ordinance when the request is forwarded to Council.
Staff recommended approval of the Downtown Dover Business Improvement District (BID) - Assessment (Tax) Rate for FY 2006-2007 and adoption of the proposed budget ordinance.
Due to two members having a conflict of interest, Mr. Hogan moved to forward the Downtown Dover Business Improvement District - Assessment (Tax) Rates for Fiscal Year 2006-2007 (Attachment #2) to Council without a recommendation. The motion was seconded by Mr. Shelton and carried with Mr. Salters and Mr. Slavin abstaining. Mr. Salters noted that due to time constraints, this matter will be referred to Council for consideration during the latter part of the evening.
Proposed Ordinance - Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes - Affordable Housing Complexes
During their Regular Meeting of March 14, 2006, members were provided a presentation by the Ingerman Group on the renovation plan for Capitol Green Apartments. It was noted that the Ingerman Group's goal is to revitalize the apartments utilizing financing from the Delaware State Housing Authority and also obtaining low income housing tax credits. In order to comply with the requirements of the Delaware State Housing Authority, a letter of governmental support from the Mayor of Dover, certification that the property is located within a community revitalization area, and receipt of a local contribution is necessary. This contribution could be accomplished through property tax exemption or abatement. Mayor Speed stated that this project would be a great improvement to the City of Dover and also noted that the City does not receive taxes from the properties because they are owned by the State of Delaware. He suggested that when ownership does transfer, the City should consider some type of tax assistance to benefit the Ingerman Group.
Members considered a proposed ordinance amendment that would establish a tax abatement program for affordable apartment housing complexes. The first draft of the proposed ordinance was submitted by Mayor Speed and, upon further discussion with the Ingerman Group and members of Council, a second, more comprehensive ordinance, was submitted for review. Mr. Salters indicated that the Committee would proceed with the revised ordinance. Mr. Carey, as one of the sponsors of the original ordinance, voiced his support of the revised ordinance.
Mr. Hogan moved to recommend adoption of the proposed ordinance (Attachment #3), seconded by Mr. Shelton and unanimously carried.
Authorization to Purchase - CISCO Voice Over Internet Protocol (VOIP) Communications System
In Fiscal 2004, The Five Year Strategic Information Technology Plan recommended that the City replace its aging phone system with a voice over internet protocol communications system. The strategic plan recommended budgeting $100,000 for such a system. The project was budgeted for $130,000 in the FY 2006 Capital Investments Plan. In August 2005, the initial RFP was placed with two respondents whose prices were beyond the budgeted estimate. Because there were only two respondents, the decision was made to re-bid. The committee then reviewed seven vendor presentations and selected MTM Technologies. MTM Technologies provided two bids--one for an Avaya system and one for a Cisco system. MTM Technologies conducted departmental discovery meetings and a facilities tour to develop a best and final offer. In May 2006, MTM Technologies submitted their best and final offer to the committee.
Mrs. Tieman provided a brief review of the current system and introduced a representative from MTM Technologies, Mr. Beau Devillier, who provided more detailed information. Mrs. Tieman also explained that the current phone system does not measure call volume or length. The new system will be able to provide detailed reports on call volume and how long it takes for phones to be answered. The Cisco system will also be able to provide flexibility to field employees. Mrs. Tieman noted that Kent County, DNREC, and Wesley College are currently using the proposed system. Mrs. Williams stressed the importance of residents calling in and getting a human voice on the other end of the line. Once system installation begins it is scheduled to take approximately 90 days to complete. Training classes will be available to all employees on the proper operation of the system. Mr. DePrima expressed his thanks to all the members of the VOIP Committee.
Staff recommended authorizing the City Manager to award MTM Technologies the contract for installing a Cisco VOIP system, as presented.
Mr. Slavin moved to recommend approval of staff’s recommendation, seconded by Mr. Hogan and unanimously carried.
Mr. Hogan moved for adjournment, seconded by Mr. Slavin.
Meeting Adjourned at 6:17 P.M.
Respectfully submitted,
Reuben Salters
Chairman
RS/hf
S:ClerksOfficeAgendas&MinutesCommittee-Minutes20066-12-2006 LF&A.wpd
Attachments
Attachment #1 - Procurement Procedures Power Supply and Operations
Attachment #2 - Downtown Dover Business Improvement District, Assessment Tax Rates for FY06/07
Attachment #3 - Proposed Ordinance - Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes - Affordable Housing Complexes