LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on September 13, 2004, at 6:15 p.m. with Chairman Salters presiding. Members present were Mr. Hogan, Mr. Slavin, Mr. Shevock, and Mr. Shelton. Members of Council present were Mr. Carey, Mr. Pitts, Mr. Sadusky, Mr. Ritter, Mr. Ruane, and Council President Williams. Mayor Speed was also present.
AGENDA ADDITIONS/DELETIONS
Mr. Slavin moved for approval of the agenda, seconded by Mr. Shelton and unanimously carried.
Disposition of City Owned Land - Property Located off of Water Street
The Delaware Department of Administrative Services is in the process of renovating the Armory. The renovation project requires that the existing trash compactor on the Armory property be relocated. In their search for a new location, staff found a desirable area that proved to be owned by the City of Dover. The site, 136 East Water Street, (Tax ID# 2-05-07709-05-5600) is a 100’ x 350’ parcel located east of and adjacent to the Delaware State Education Association building. Members were advised that the property appears to be a remnant lot from the sale or transfer of a portion of the old PW2 property to the State of Delaware/Kent County for a sewer station. The property contains a driveway leading to a Kent County sewer station, a Kent County sewer station line easement transecting the property, and an electric transformer.
The City was originally approached for an easement on the property to allow the placement of the trash compactor. The City Manager, Mr. DePrima, recommended that the State make an offer to purchase the property, since it proved to be surplus property. In accordance with the simple appraisal that was conducted by the State, the value of the property was determined to be between $2,500 and $5,000. The low value is due to the majority of the property being located in a flood plain and, because it is transected by a sewer easement, construction of a building on the lot is precluded.
In accordance with the City of Dover Procedure for Sale and Disposition of Real Property, the City Manager has evaluated the property and determined that no City departments have a need for it. The parcel is currently zoned Institutional and Office. Mr. DePrima noted that the action form incorrectly has the property listed as Limited Commercial (C-1A) and changing the zoning would not enhance the value of the lot. The procedure encourages the sale of surplus land through auctions or sealed bids; however, there are several exceptions, including Exception C, Conveyance of odd shaped and/or unbuildable lots. Under this exception, the City may sell the property to an adjacent owner based on an unbiased fee appraisal. Staff recommended authorizing the City Manager to sell the property on East Water Street to the State of Delaware for $5,000. Mr. DePrima assured members that the City Solicitor will be requested to review the sale of the property to ensure that all easements and legalities are in order.
Responding to Mr. Salters, Mr. DePrima stated that, according to the policy, whenever there is a sale of surplus property, the money is to be allocated to the Parks and Recreation Reserve Fund.
Mr. Hogan moved to authorize the City Manager to negotiate the sale of property located on East Water Street to the State of Delaware for a value between $2,500 and $5,000, seconded by Mr. Shelton and unanimously carried.
Acceptance of the Dedication of Property - 18 S. Queen Street
Members reviewed a request from Mrs. Juanita G. Carter for the City to consider the possibility of assuming ownership of property she owns at 18 S. Queen Street to fulfill all outstanding obligations owed to the City involving this property, totaling $6,582.75. Members were advised that the property has a $6,450 City lien on it because the City had a building on the property demolished. In addition, the current City taxes on the property is $132.75.
After receiving Mrs. Carter’s proposal, the City Manager contacted the newly established “Dover Community Partnership, Inc.” to determine if they would be interested in developing the property. The Partnership, in which the City is a participating member, is dedicated to the redevelopment of Downtown Dover through promoting homeownership. The Partnership was initiated through the efforts of Senator Carper and is being managed by the Dover Housing Authority. The Partnership has received 501(c)3 non-profit tax status. The Partnership sent a letter expressing interest in the property and indicated that a three or four bedroom owner-occupancy home would be constructed on the property, placing it back on the tax rolls.
In accordance with the City of Dover Procedure for Sale and Disposition of Real Property, the City Manager has evaluated the property. No City departments have a need for the 25’ x 152’ vacant residential lot. The current zoning is General Residence (RG-1), and changing the zoning would not enhance the value of the lot. The procedure encourages sale of surplus land through auctions or sealed bids; however, there are several exceptions, including Exception D, Donation of Land to Non-Profit Organizations. Under this exception, City Council may donate the property to a non-profit organization when it determines that it would be in the best interest of the City. The redevelopment of the residential areas of Downtown Dover through encouraging homeownership is expressed in the City Comprehensive Plan and the Community Development Block Grant (CDBG) Action Plan. It was also noted that acquiring the land in this manner is more cost effective than acquiring it through tax sale.
Staff recommended authorizing the City Manager to acquire the property at 18 S. Queen Street in exchange for forgiving existing City liens and tax debt, and transfer ownership to The Dover Community Partnership.
Mr. Slavin moved to recommend approval of Staff’s recommendation, seconded by Mr. Hogan and unanimously carried.
CIP Amendments - Vehicle Purchases - Robbins Hose Company
The City Manager was approached by Fire Chief Bashista regarding a long-range vehicle replacement plan for the Robbins Hose Company that would entail the City of Dover providing funds for the Company’s major apparatus equipment replacement. In addition, the City would continue to provide $60,000 per year toward the mortgage payment of Station #1. Under this proposal, the Robbins Hose Company would fund the $2.5 million improvement to the Headquarters/Station #1 without City assistance and assume the funding of command and utility vehicles. A letter from Chief Bashista that fully explains the proposal, along with tables to compare the proposal with current vehicle replacements, as embodied in the CIP, was provided to members for their review. It was noted that neither table includes the City’s $60,000 per year funding for Station #2.
Fire Chief Bashista advised members that if the City had a paid fire department, 102 firefighters would be needed to provide 21 firefighters per shift, at a cost of approximately $7 million per year. Mr. DePrima stated that he has discussed this topic with other City Managers and they have indicated that the cost to a municipality for a fire department is approximately the same as a police department, which confirms Chief Bashista’s estimate. Chief Bashista assured members that enrollment of volunteers is good and that he did not foresee a need in the future for career firefighters.
In response to Mr. Ruane, Chief Bashista stated that he would be willing to sit down and discuss other avenues, such as impact fees, with Council. Mr. Salters stated that a Fire Tax may also be an option. Chief Bashista stated that any fees should be attributed to Public Safety and not solely attached to Fire service.
Responding to Mr. Salters, Mr. DePrima requested that members keep in mind that, except for the larger increase for next year, which is due to accelerating the replacement of Engine #4, this proposal is for approximately the same as the $250,000 payments, plus the replacement of some vehicles that have been done in the past. Mr. Hogan responded that this proposal stabilizes the amount of money the City contributes each year. Responding to Mr. Hogan, Chief Bashista stated that about 9% of his budget is derived from donations.
Responding to Mr. Shevock, Mr. DePrima noted that this proposal spends approximately $79,000 more than the City anticipated for next year; however, it is less than one half of one percent or closer to a third of a percent of the budget.
Mr. Slavin moved to recommend adoption of the revised Capital Investments Plan (CIP), as outlined in the attached exhibits (Attachment #1), which reflect the request of the Robbins Hose Company to adopt a payment plan that transfers funds over the next ten years to the Robbins Hose Company for major apparatus replacement and mortgage payments for Station #2, with the condition that the Robbins Hose Company agrees to assume all payments for improvement to Station #1 currently estimated at $2.5 million and all auxiliary vehicle and equipment costs; it is further understood that this contingency be reflected in minutes of the meeting, certified by the City Clerk and sent to the Robbins Hose Company, and that the Robbins Hose Company shall send certified minutes of its meeting at which the payment plans for major and auxiliary apparatus and fire station were agreed to; it is further understood that both the City of Dover and the Robbins Hose Company will, to the best of their abilities, adhere to this plan, that the improvements to Station #1 will preclude any need for a third station in the foreseeable future, and that Robbins Hose Company will, because of the lead time necessary for ordering major fire apparatus, need to order equipment in the fiscal year prior to the first payment. The motion was seconded by Mr. Shevock and unanimously carried.
Charter Review “Blue Ribbon Committee” (Councilman Hogan)
In August 2003, Council President McGlumphy requested that members of City Council and the Legislative, Finance, and Administration Committee review the City Charter and Code for possible changes and that any proposed changes be submitted to the City Clerk's Office. This review was requested as a result of several comments and concerns relayed by members of Council as well as the recent PAS Study.
Mr. Hogan stated that although the Legislative, Finance, and Administration Committee began the review process, due to time constraints, the committee was unable to complete the review. He recommended that a “Blue Ribbon Committee” be formed, utilizing talent available in the community, to spend six (6) months reviewing the Charter in order to make recommendations to Council.
Mr. Salters and Mayor Speed stated that the review performed previously by the Legislative, Finance, and Administration Committee was almost complete and they would like to present those recommendations.
Mr. Ruane recommended a review of Title 22 of the Delaware Code, specifically regarding the suggested methodology for making charter changes. He noted that there are three ways to change a Charter, including a three fourths (3/4) vote of Council.
Mayor Speed and Mr. Salters advised the Committee that they would try to have the information available by the next Legislative, Finance, and Administration Committee meeting. Mr. Carey recommended that the Charter review be done during a workshop, not a regular meeting. Mr. Ruane reminded members that the City is in the process of having the Charter reincorporated and suggested that a review be conducted once the reincorporation is finalized.
Mr. Slavin moved for adjournment, seconded by Mr. Hogan and unanimously carried.
Meeting Adjourned at 7:08 P.M.
Respectfully submitted,
Reuben Salters
Chairman
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S:ClerksOfficeAgendas&MinutesCommittee-Minutes20049-13-2004-LF&A.min.wpd
Attachment to Original Minutes and File Copy
Attachment #1 - Fire Department Apparatus Replacement Plan and Replacement CIP Pages