REGULAR COUNCIL MEETING

The Regular Council Meeting was held on July 14, 2003 at 7:30 p.m. with Council President McGlumphy presiding. Council members present were Mr. Carey, Mr. Pitts, Mr. Truitt, Mr. Ritter, Mr. Speed, and Mr. Salters. Mrs. Williams and Mr. Ruane were absent.

Council staff members present were Police Chief Horvath, Mr. Cooper, Mr. Jorgenson, Mrs. Mitchell (arrived at 7:50 p.m.), Fire Chief Bashista, Mr. DePrima, City Solicitor Rodriguez, Mrs. Green, and Mayor Hutchison.

OPEN FORUM

The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President McGlumphy declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action.

Mr. James Hosfelt, resident of Fox Hall West, addressed members as President of the FOP Lodge #15. He noted that members have been participating in negotiations since January for a July 1, 2003 contract; however, they have been unsuccessful. He advised members that they are anxiously attempting to settle and invited any member of Council or the media to contact them for a presentation in an attempt to help resolve the pending contract.

The invocation was given by Chaplain Dixon, followed by the Pledge of Allegiance.

 

AGENDA ADDITIONS/DELETIONS

Mr. Carey requested the addition of item #1A, Flag Presentation - Tsgt. Jeffrey Dillon. Council President McGlumphy requested that item #4, Public Hearing/Final Reading - Rezoning, be moved forward to be considered as item #2A.

Mr. Carey moved for approval of the agenda, as amended, seconded by Mr. Truitt and unanimously carried.

ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JUNE 23, 2003

Mr. Ritter referred to the item in the minutes regarding the Monthly Reports for May 2003 and noted that there was discussion regarding the Mayor’s monthly report. He requested that the minutes be reflected to indicate that the Mayor’s comments included golfing in explaining his trip to Kiawah Island, South Carolina.

The Minutes of the Regular Council Meeting of June 23, 2003, as amended, were unanimously approved by motion of Mr. Speed, seconded by Mr. Carey, and bore the written approval of Mayor Hutchison (with the exception of the motion to approve the appointments of Stephen R. Speed (Chairman), Eugene B. Ruane, and Robert G. Ritter to the Legislative and Finance Committee as recommended by Council President McGlumphy).

ADOPTION OF MINUTES - SPECIAL COUNCIL MEETING OF JUNE 30, 2003

The Minutes of the Special Council Meeting of June 30, 2003 were unanimously approved by motion of Mr. Speed, seconded by Mr. Carey and bore the written approval of Mayor Hutchison.

FLAG PRESENTATION - TSGT. JEFFREY DILLON

On behalf of the City of Dover, Mayor Hutchison accepted an American Flag presented by Jeffery Dillon, Tsgt. Deang, Crew Chief. Tsgt. Dillon explained that the flag was proudly flown for the City of Dover by the 379^th Air Expeditionary Wing, Doha, Qatar, aboard a Delaware Air National Guard C-130 (84-0210) over the hostile skies of Baghdad, Iraq during Operation Iraq Freedom. He stated that it was an honor to present the flag to his City, which he feels proud to call home. In addition, Tsgt. Dillon presented a piece of tile, which came from the Republican Guard Air Terminal in Baghdad.

RECOGNITION - GRADUATES OF LEADERSHIP CENTRAL DELAWARE CLASS OF 2003 - DONNA MITCHELL (FINANCE DIRECTOR/TREASURER - CITY OF DOVER) AND CARLOS EDWIN PEREZ (EXEC. DIRECTOR - MAIN STREET DOVER)

On behalf of members of City Council, Council President McGlumphy congratulated Donna Mitchell (Finance Director/Treasurer - City of Dover) and Carlos Edwin Perez (Exec. Director - Main Street Dover) on their recent graduation from the Leadership Central Delaware Class of 2003. He relayed appreciation to these employees for taking the initiative and effort to participate in these classes.

PUBLIC HEARING/FINAL READING - REZONING OF PROPERTY LOCATED ON THE SOUTHWEST SIDE OF MCKEE ROAD, OWNED BY FOX HALL PLANTATION

A public hearing was duly advertised for this time and place to consider rezoning of property located on the southwest side of McKee Road, 330+/- feet north of Brandywine Drive, containing approximately 14.5+/- acres, owned by Fox Hall Plantation. The property is currently zoned R-15 (One Family Residence) and the proposed zoning is RM-1 (Medium Density Residence)

Planner's Review

Mr. Jorgenson, City Planner, reviewed the petition to amend the zoning district and the findings and recommendations of the Planning Commission (Exhibit #1). The Planning Commission recommended that the request for rezoning be approved.

Mr. Speed referred to a letter received from Mr. J. Edward Adams, President of the Meadows Homeowners Association, relaying concerns that the rezoning could allow use of the property that could potentially detract from the sense of the community of the Meadows. He questioned if there was another zoning classification that would permit duplexes and/or townhouses without permitting the other uses.

Responding, Mr. Jorgenson stated that it is the intention of the applicant to have only residential uses on the land. It is the Planning Office expression that the proposed zoning classification is appropriate for this property for its use. Concurring with Mr. Speed, Mr. Jorgenson stated that although the City is not permitted to condition the rezoning request, the applicant can indicate for the record their intended use for the property.

Dr. McClements, President of Fox Hall Plantation, explained that they plan to have 18 duplex units, consisting of nine (9) buildings. If this plan is not workable, he indicated the intention would be to revert to single family homes.

Mr. Tom Burns of Burns and Ellis Realtors, 490 N. DuPont Highway, advised members that since the Planning Commission meeting, he has spoken with Mr. Adams and that he is comfortable with the proposed plan. An invitation has been extended to Mr. Adams, as the President of the Association, to review the proposed subdivision plan prior to construction. Mr. Burns noted that several builders have expressed an interest in the development of this property and that consideration is being given to using Millcreek, located at the intersection of McKee and Denneys Roads, as an example in emulating that type of product line for the development of this property.

Public Hearing

Council President McGlumphy declared the hearing open. There being no one present wishing to speak, Council President McGlumphy declared the hearing closed.

Mr. Speed moved for approval of the rezoning request as recommended by the Planning Commission. The motion was seconded by Mr. Salters and by a unanimous roll call vote (Mrs. Williams and Mr. Ruane absent), Council adopted the following ordinance: (The First Reading of this ordinance was accomplished during the Council Meeting of May 27, 2003.)

AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED ON THE WEST SIDE OF MCKEE ROAD, CONTAINING 14.5 ^+/- ACRES, 330' ^+/- NORTH OF BRANDYWINE DRIVE.

WHEREAS, the City of Dover has enacted a zoning ordinance regulating the use of property within the limits of the City of Dover; and

WHEREAS, it is deemed in the best interest of zoning and planning to change the permitted use of property described below from R-15 (One Family Residence) and COZ-1 (Corridor Overlay Zone) to RM-1(Medium Density Residence).

NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:

1.         That from and after the passage and approval of this ordinance the Zoning Map and Zoning Ordinance of the City of Dover have been amended by changing the zoning designation from R-15 (One Family Residence) and COZ-1 (Corridor Overlay Zone) to RM-1(Medium Density Residence) on property located on the west side of McKee Road, containing 14.5 ^+/ acres, 330' ^+/- north of Brandywine Drive, owned by Fox Hall Plantation.

ADOPTED:    JULY 14, 2003

PUBLIC HEARING/FINAL READING - BUDGET ORDINANCES - PROPOSED 2003/2004

The First Reading of the Budget Ordinances - Proposed 2003/2004 was accomplished during the Council Meeting of June 30, 2003.

Council President McGlumphy declared the public hearing open. There being no one present wishing to speak, the public hearing was declared closed.

Mr. Speed moved that the Final Reading of the proposed ordinances be acknowledged by title only, seconded by Mr. Carey and unanimously carried.

At the request of Mayor Hutchison, Mr. DePrima presented revisions to the 2004 budget for the Mayor’s Office which reflected a decrease in the amount of $12,959 (Exhibit #2). He recommended that the revisions be incorporated into the budget ordinances for adoption.

Mr. Salters moved for adoption of the 2003/2004 Budget Ordinances (Exhibit #3), to include appropriate line item amendments to reflect decreases for the Mayor’s budget. The motion was seconded by Mr. Pitts and carried by a roll call vote of five (5) yes, and two (2) no (Mr. Ritter and Mr. McGlumphy) (Mrs. Williams and Mr. Ruane absent).

PRESENTATION - DELAWARE TRANSIT CORPORATION (DART) - RAY MILLER

Mr. Ray Miller, Executive Director of the Delaware Transit Corporation (DART), presented a PowerPoint Presentation on the short-range plans and outline of the Delaware Transit Corporation’s proposal for combining fixed route and paratransit services in Kent County (Exhibit #4).

Members were provided an excerpt from the Transportation Committee Meeting of March 18, 2003, indicating that this presentation was given to members and that the committee recommended approval of the proposal to combine the fixed and paratransit systems into the flex plan.

No further action was taken by Council.

BRIEFING - DUKE CONTRACT (KIRK BETTS)

Mr. Kirk Betts of Betts and Holt, Washington, D.C., provided a PowerPoint Presentation with regards to the Duke Energy Trading & Marketing (DETM) Contract (Exhibit #5). The information included a summary of the Wholesale Power Supply and Services Agreement, as well as the Operation and Maintenance Agreement. The terms of these agreements expire June 30, 2006. Mr. Betts also explained the contract responsibilities, allocation of risks, analysis of annual rate changes and projections, and a review of the City’s purchases from 1996 to the present.

After much discussion, it was noted that further discussions regarding the contract negotiations would take place during the executive session scheduled for later in the evening.

PROPOSED BOND RESOLUTION - AUTHORIZING THE SALE OF UP TO $26,810,000 ELECTRIC REVENUE BONDS OF THE CITY OF DOVER

Mr. Speed moved for adoption of the Bond Resolution authorizing the sale of up to $26,810,000 Electric Revenue Bonds by consent agenda, seconded by Mr. Carey and carried by a unanimous roll call vote (Mrs. Williams and Mr. Ruane absent):

A RESOLUTION AUTHORIZING THE SALE OF

UP TO $26,810,000 ELECTRIC REVENUE

BONDS OF THE CITY OF DOVER

WHEREAS, pursuant to Chapter 158, Volume 36, Laws of Delaware, as amended (the "City Charter") and Chapter 111, Volume 52, Laws of Delaware, as amended, The City of Dover (the “City”) in order provide funds to finance a portion of the City’s Electric System, adopted a Resolution on July 26, 1965 (as thereafter supplemented and amended, the “Bond Resolution”) providing for the issuance of its electric revenue bonds and pursuant to the Bond Resolution it has issued and there remains outstanding (i) $4,335,000 of its Electric Revenue Bonds (Series 1990) and (ii) $19,750,000 of its Electric Revenue Refunding Bonds (Series 1993) (collectively, the “Outstanding Bonds”); and

WHEREAS, the City desires to issue additional revenue bonds pursuant to the Bond Resolution to refund some portion or all of the Outstanding Bonds.

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dover, Delaware as follows (at least three fourths of all members thereof concurring therein):

1.         The Council authorizes the sale of the City’s revenue bonds pursuant to the Bond Resolution in the aggregate original principal amount of up to $26,810,000 (the “Series 2003 Bonds”) for the following purposes:

2.         The Series 2003 Bonds shall be sold in a public or privately negotiated sale in such manner, subject to such terms and at such price, as the Mayor and Finance Director shall determine shall be in the best interest of the City.

3.         The Series 2003 Bonds shall bear interest at such rates, shall be payable and shall mature at such times, shall contain such provisions for optional and mandatory redemption, shall be in such form, certificated or book entry, and shall contain such other terms and conditions as the Mayor and Finance Director shall determine shall be in the best interest of the City.

4.         The Mayor and Finance Director are authorized to prepare and distribute a Preliminary Official Statement in connection with the offering and sale of the Series 2003 Bonds and to "deem" such Preliminary Official Statement "final" for the purposes of Rule 15c2-12 of the Securities and Exchange Commission and to finalize and distribute an Official Statement.

5.         The Mayor and Finance Director are each authorized to enter into a contract with one or more purchasers of the Series 2003 Bonds providing for the City to issue and sell said bonds in accordance with the terms of said contract and this Resolution. In connection with the issuance of bonds for refunding purposes the Mayor and Finance Director are each authorized to retain accountants or other consultants to perform verification calculations as well as an escrow agent to act on behalf of the owners of the refunded bonds.

6.         Upon entering into a contract to issue and sell the Series 2003 Bonds the Mayor shall promptly inform Council of the terms thereof whereupon Council shall adopt a Resolution confirming the terms thereof.

7.         The City hereby covenants for the benefit of holders of the Series 2003 Bonds that, so long as any Series 2003 Bonds are outstanding, it will file, or cause to be filed, all financial information, operating data and notices of events, actions or failure to act, with such persons and entities and at such times as may be necessary to comply with the requirements of Rule 15c2-12(b)(5) of the Securities Exchange Commission with respect to the Series 2003 Bonds.

8.         The City Clerk shall forthwith cause to be published once in a newspaper published in the City a notice in substantially the following form:

“NOTICE

“NOTICE IS HEREBY GIVEN that the City Council of The City of Dover, Delaware, on July 14, 2003, pursuant to Chapter 111, Volume 52, Delaware Laws, as amended, adopted a resolution entitled as follows:

‘A RESOLUTION AUTHORIZING THE SALE OF UP TO $26,810,000 ELECTRIC REVENUE BONDS OF THE CITY OF DOVER’

“The purpose of the issuance of said bonds is to provide funds to refund some portion or all of the City’s Electric Revenue Bonds (Series 1990) and the City’s Electric Revenue Refunding Bonds (Series 1993) which currently remain outstanding.

“Any action or proceeding to contest the validity of said resolution or any of its provisions must be commenced within thirty (30) days after the publication of this notice. After the 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 whatever, except in an action or proceeding commenced within such period.

“By order of the City Council of The City of Dover, Delaware.

The Mayor, Finance Director and Clerk of Council are hereby authorized and directed to take all action deemed by them as necessary and appropriate to carry out the intent of this resolution.

9.         This resolution shall take effect immediately upon its passage and approval by the Mayor.

ADOPTED:    JULY 14, 2003

UTILITY COMMITTEE REPORT - JUNE 23, 2003

The Utility Committee met on June 23, 2003 with Chairman Ruane presiding.

Request for Alley Abandonment (paper) - 78 Ann Avenue - Norene Griffin (Resolution Setting Public Hearing for July 28, 2003)

A request was received from Ms. Norene A. Griffin for the abandonment of an alley running north-south between 78 Ann Avenue and 75 McKee Road. The alley is unimproved and is considered to be a “paper” alley; therefore, it does not require review by the D.A.C. or Planning Commission. Members were provided with a map of the area and a list of adjacent property owners.

Staff recommended that a public hearing for alley abandonment be set, provided that a utility easement equivalent to the length and width of the alley be retained to provide ingress and egress to repair, replace, maintain or modify the existing electric and sewer utilities. Staff recommended that the curb cut remain.

The committee recommended that a public hearing be set, and that a utility easement equivalent to the length and width of the alley way be retained to provide ingress and egress to repair, replace, maintain or modify the existing electric and sewer utilities, and that the curb cut remain, as recommended by staff.

Mr. Speed moved for approval of the committee’s recommendation by consent agenda, seconded by Mr. Carey and by a unanimous roll call vote (Mrs. Williams and Mr. Ruane absent), Council adopted the following Resolution:

A RESOLUTION PROPOSING THE VACATING AND ABANDONMENT OF A CERTAIN ALLEY SITUATED IN THE CITY OF DOVER.

BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:

Section 1. The Council of the City of Dover favors the vacating and abandoning of the following alley:

All that certain piece or parcel of land situated in the City of Dover, Kent County, State of Delaware, an alley running north to south, lying on the southerly side of Brown Street between McKee Road and Ann Avenue and parallel to Ann Avenue, being 20 feet wide and approximately 57 feet in length, comprising 1,140 square feet, more or less.

Section 2. The Council of the City of Dover will sit on Monday, July 28, 2003, at 7:30 p.m., in the Council Chambers at City Hall, 15 E. Loockerman Street, Dover, Delaware, to hear the objections of such residents of the City or owners of the property affected as shall attend, in accordance with the provisions of Section 27 of the Charter of the City of Dover (Chapter 158, Volume 36, Laws of Delaware).

Section 3. The Clerk of Council is hereby directed to post copies of this Resolution in five or more public places in the City of Dover.

ADOPTED: JULY 14, 2003

Engineering Services Agreement - Walker Road Pump Station Upgrade (Design Phase)

The FY-2003 Operating Budget for the Public Works Wastewater Management Division included a project to upgrade the existing Walker Road Pumping Station. The Wastewater Master Plan Technical Documents identified the following improvements as necessary to upgrade the station to current operating conditions and standards: pump & motor replacement (20 hp), electrical upgrades, water seal system, wet well rehabilitation, bypass pumping, and miscellaneous building improvements. This pump station and all of the interior systems are approaching the end of their expected service life of thirty (30) years. The Department of Public Works prepared a Request for Qualifications (RFQ) to provide engineering design services for several wastewater projects. The RFQ was publicly advertised and eleven (11) engineering firms submitted their qualifications for review. Public Works staff short-listed three (3) firms for the interview process as follows:

                        Davis, Bowen & Friedel, Inc.                         Milford, DE

                        Whitman, Requardt & Associates                  Baltimore, MD

                        Pennoni Associates, Inc.                                 Wilmington, DE

During the interview, Pennoni Associates, Inc. described in detail the approach they plan to take for the proposed upgrade and presented a number of similar projects they had completed in recent years. In addition, the staff members who made the presentation to City staff will be the project team for the consultant. Pennoni Associates’ qualifications for this project are extensive, and their experience with this type of project throughout this region is substantial.

Staff recommended entering into an engineering services agreement with Pennoni Associates, Inc. for the Walker Road Pump Station Upgrade. Pennoni Associates, Inc. has submitted a draft task list with a lump sum fee of $28,500. This fee includes design and bidding services. This recommendation is contingent upon approval of the FY04 Budget.

The committee recommended authorizing the Public Works Department to enter into an engineering services agreement with Pennoni Associates, Inc. for the Walker Road Pump Station Upgrade at a lump sum fee of $28,500, contingent upon approval of the FY04 Budget.

Mr. Speed moved for approval of the committee’s recommendation by consent agenda, seconded by Mr. Carey and carried by a unanimous roll call vote (Mrs. Williams and Mr. Ruane absent).

Evaluation of Bids - Turnberry Pumping Station Wet Well

In conjunction with the revised FY-2003 Operating Budget, the Department of Public Works prepared plans and specifications for the construction and installation of a new 6' diameter concrete wet well in the Turnberry Subdivision. The new wet well will be approximately 20' deep and will be used in conjunction with a Smith & Loveless package pumping station which was formerly located at Millcreek. The existing pumping station located adjacent to the entrance to the Turnberry Subdivision is operating at a utilization greater than 100%. The construction of a new wet well is necessary due to the age of the existing pumping station. Once upgraded, the station capacity will be increased from 100 gallons per minute to 225 gallons per minute using the existing force main. The wet well of the existing pump station will be converted to a manhole. The improvements identified in the bid package will address current and future wastewater needs in this basin. City staff will be completing additional work related to electrical service improvements and landscaping in conjunction with the wet well segment of the project. The specification package was publicly advertised and made available to local contractors and bids were received as follows:

                        George & Lynch, Inc., New Castle, DE                        $82,880.00

                        Teal Construction, Inc., Dover, DE                             $170,660.00

Staff recommended awarding the contract for the construction of the Turnberry Pumping Station wet well to the low bidder, George & Lynch, Inc. of New Castle, Delaware, in the amount of $82,880.00, contingent upon approval of the FY-2004 Budget.

During the committee meeting, Mr. DePrima stated that he would look into the reason for the significant price difference in the bids. Mr. Ruane had requested Mr. Koenig to provide information on the procedure for requesting bids and to look into the State’s electronic bidding.

The committee recommended approval of staff’s recommendation.

Mr. Speed moved for approval of the committee’s recommendation to award the contract for the construction of the Turnberry Pumping Station Wet Well to the low bidder, George & Lynch, Inc. Of New Castle, Delaware, in the amount of $82,880.00, by consent agenda. The motion was seconded by Mr. Carey and carried by a unanimous roll call vote (Mrs. Williams and Mr. Ruane absent).

Mr. Speed moved for acceptance of the Utility Committee Report by consent agenda, seconded by Mr. Carey and carried by a unanimous roll call vote.

FINANCIAL OVERSIGHT COMMITTEE REPORT - JUNE 23, 2003

The Financial Oversight Committee met on June 23, 2003, with Mr. Speed presiding.

Consideration for Use of Actual Sales for Assessment of Real Property

Due to some disparities in the assessment value assigned by the City and their market value as reflected by their sale price, a request was made to the Tax Office by a member of Council to investigate the possibility of assessing property based on the most recent sales.

During the committee meeting, the City Assessor indicated that an intensive investigation into the pros and cons of this method of assessment was conducted and provided members with some of the issues involved. Staff recommended that Commercial Properties which have sold after July 1, 2002 be reassessed based on their most recent sale.

Mr. Cooper explained that the tax billing for the year following the sale would be based on the sale price of the property. The buyer would be affected by the change in method of assessment, not the seller. He noted the assessment values of the last general assessment could be increased or decreased and that a supplemental assessment is done on new construction. Mr. Cooper stated that he thought the disparity in the sale price and the assessed value was due to the inclusion of the purchase of leases in the purchase price for commercial properties. He stated that the City utilizes replacement cost without considering property’s income producing nature. Mr. Ruane felt that the disparity was creating an inequitable situation for the taxpayers.

Mr. Tom Burns, representing the Kent County Association of Realtors, and Mr. Phil McGinnis, Dover Consulting Services (Delaware certified general real property appraiser) relayed concerns with the proposal. Mr. McGinnis advised members that there are three (3) approaches to the appraisal of real estate: the cost approach, the sales approach, and the income approach. He noted that it is preferable to perform all three (3) appraisals with them reconciling into a very tight range of values. With a mass appraisal, which is the object of doing equalization taxes or property taxes, a class of properties is appraised as a group, not each property individually. Mr. McGinnis stated that the general assessment is currently based on cost. If an individual assessment is adjusted based on the sale of the property, the sale of all other similar properties would need to be evaluated. Mr. McGinnis thought it would be unfair and inequitable to change one property owner’s assessment based on a current sale without adjusting the other property owners.

Mr. Speed stated that he thought an equity problem existed which needs to be corrected. In his opinion, all properties should be included instead of specifying certain properties. Mr. Speed suggested providing more time for public input prior to taking action.

The committee tabled the matter to allow an opportunity to dialogue further with the community.

Mr. Speed moved for approval of the committee’s recommendation by consent agenda, seconded by Mr. Carey and carried by a unanimous roll call vote (Mrs. Williams and Mr. Ruane absent). Mr. Speed clarified that Council’s approval of this item indicates no action since it was tabled by the committee.

Procedure - Submission of Bids to Council for Approval (Amendments to Purchasing Policy)

Members were advised that, during the research regarding Council Standing Committees, it was discovered that no other municipality had bids submitted to a committee for their review and recommendation to Council. Bids were presented to the governing body directly for approval. Members were also advised that, in accordance with §6923(c)(2) of the Delaware Code, bids shall be awarded within 30 calendar days of the bid opening. By utilizing our current process, depending on the date of the bid opening, the City may be in conflict with this requirement.

Members of Council have recently taken a more active role in reviewing the City’s policies, procedures, and legislative issues. To afford Council the opportunity to give these matters their utmost attention, ideas have been discussed to alleviate Council spending time on customary issues. In accordance with Section 3.13 and 3.15(A) and (D) of our Purchasing Policy, purchases from $25,001 must be