COUNCIL COMMITTEES
The Council Committees Meeting was held on July 9, 2001, at 5:30 p.m., with Council President McGlumphy presiding. Members of Council present were Mr. Ritter, Mr. Pitts, Mr. Gorman, Mr. Truitt, Mr. Carey, Mr. Speed, Mr. Salters, Mr. Ruane, and Mayor Hutchison.
AGENDA ADDITIONS/DELETIONS
Mr. Speed moved for approval of the agenda, seconded by Mr. Gorman and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Gorman presiding. Members present were Councilmen Ruane and Salters, Mr. Snaman, and Mrs. Street.
Request for Tax Abatement - Lee D. Anders - 21 Elm Terrace
Mr. Lee Anders submitted a request for property tax relief as a result of the $5.00 per month trash fee instituted by the City last year. The Assessment Appeals Committee considered the request during their meeting of May 30, 2001 and took no action since it did not relate to the tax appeal process.
Mr. Anders stated that the City’s 2000/01 budget indicated that property taxes collected were used to support 10% of the sanitation expenses for the fiscal year. All taxpayers paid slightly less than 10% of the budgeted amount, depending on the value of their property. Mr. Anders believes that he is paying twice for trash service - a $60 per year trash fee and 10% of his property taxes ($36).
Mr. Anders suggested that if property taxes were raised by 11% instead of instituting the trash fee, taxes would cover sanitation expenses at a lesser cost to the taxpayer. He also suggested that if the tax exempt properties began paying $60 per year for sanitation service and property taxes were increased by 7%, the cost to the taxpayers would also be less than paying the current tax rate and trash fee. Finally, Mr. Anders suggested that a trash fee could be charged to all users with a discount provided to taxpayers.
Mr. Speed informed Mr. Anders that it is the opinion of the City Solicitor that to relieve non-tax exempt property owners from the trash fee and place the entire burden upon tax exempt properties would be interpreted as a method of taxing tax exempt properties and would be impermissible.
Mr. Snaman pointed out that there are several commercial properties that pay property tax and do not utilize City sanitation service.
No further action was taken by the committee.
Superfund Site - “De Minimis Settlement Offer”
Mr. DePrima advised members that the City of Dover disposed of a number of electric capacitors between 1983 and 1986 that ultimately went to PCB, Inc. in Kansas City, Missouri. PCB, Inc. had an EPA permit to operate facilities for the purpose of disposing of PCB contaminated equipment. Due to its operating practices, the PCB, Inc. site became a "Superfund Site". Its customers included the federal government, rural electric cooperatives, utility companies, cities, states, and large and small businesses. Approximately 1,500 parties shipped materials to the site and are potentially liable for cleanup costs based on the amount of material shipped. The total estimated cleanup cost is $34,752,000.
Due to the small amount of material shipped by the City of Dover, the Environmental Protection Agency has made a two-tiered “de minimus” settlement offer. The first tier premium of $9,932.44 would release the City from any further charges for cleanup at this site. The second tier premium of $7,449.33 would have a cost overrun re-opener. If the cost exceeds $60 million, the City would be responsible for its proportional share, which could be $286 for each one million dollars over $60 million spent on the cleanup. Cleanup cost would have to exceed $68 million to justify the first tier premium of $9,932.44. It was Mr. DePrima’s opinion that it was very unlikely that the estimated cost would double; therefore, he recommended accepting the second tier offer with a payment of $7,449.33.
Mr. DePrima stated that approximately $100,000 per year is budgeted in the Electric Department’s environmental expenses account. No monies would be due until thirty days after the EPA issues notice that the settlement is effective, which is anticipated to be in the late fall of 2001.
Mr. Gorman informed members that the City Solicitor has reviewed the settlement offer and has suggested accepting the first tier payment of $9,932.44.
Mr. Speed requested that additional information be obtained from the EPA regarding their estimates and actual costs for projects such as this.
Mr. Ruane moved to recommend that the City Manager be authorized to accept the “de minimis” settlement offer from the EPA at a premium of $7,449.93 with the cost overrun re-opener, as recommended by staff. The motion was seconded by Mr. Salters and unanimously carried.
Proposed Ordinance Amendment - Airport Environs Overlay Zone (AEOZ)
During the committee meeting of June 25, 2001, members considered proposed amendments which define specific uses permitted within the Accident Potential and Clear Zones, as well as prescribe noise attenuation for new structures within the noise contours generated by the operations of Dover Air Force Base (DAFB). Having several questions regarding types of structures in the affected area and the impact the ordinance would have on existing buildings, members tabled action to allow staff the opportunity to include exemptions for residential properties and to obtain additional information regarding an inventory of residential and commercial properties. Mr. Ruane moved to lift the item from the table, seconded by Mr. Salters and unanimously carried.
Mr. Petit de Mange informed members that staff has completed an analysis of existing land uses and structures within the area of impact for the noise contours and accident potential zones. He stated that there are four (4) agricultural structures, 25 commercial structures, 36 industrial buildings, three (3) institutional buildings, and 716 residential structures which would be impacted by the noise attenuation measures. Within the accident potential zone there is one (1) agricultural building, two (2) commercial buildings, 23 industrial buildings, one (1) institutional building, and 39 residential buildings. Mr. Petit de Mange indicated that there are 95 undeveloped residential lots within the area.
Mr. Petit de Mange stated that the revised proposed ordinance would exempt proposed additions to existing residential and commercial buildings. The regulations would impact new construction only.
Mr. Speed questioned how the ordinance would affect mobile homes. Mr. Petit de Mange stated that an existing mobile home could be replaced under the existing non-conforming ordinance; however, new mobile home units would be subject to the proposed amendments.
Mr. Ruane moved to recommend adoption of the proposed Airport Environs Overlay Zone (AEOZ) amendments (Attachment #1), seconded by Mr. Salters and unanimously carried. (It is noted that a public hearing is required and it is recommended that the public hearing be scheduled for August 13, 2001 at 7:30 p.m.).
Evaluation of Bid - 20 Cubic Yard Rear Loading Sanitation Truck
The Department of Public Works requested replacement of Vehicle #449 (a 1985 GMC Sanitation Truck) in the FY-2002 Sanitation Division Operating Budget. The chassis for this vehicle has more than 300,000 miles of usage and the loading body is plagued by metal fatigue. In an effort to standardize the current rear loading sanitation fleet, bid specifications were scripted around a Heil Formula 4000 loading body or an approved equal.
The low bid was received from I. G. Burton Co., Inc., Milford, Delaware, in the amount of $79,177.00. Staff has evaluated the low bid and found it to be in compliance with the specifications. The Heil loading body is the standard for the City’s rear loading sanitation fleet; therefore, the truck drivers and mechanics are familiar with the operation and maintenance of the vehicle.
Funding for this equipment is available in the FY-2002 Sanitation Division Operating Budget under the Leased Equipment and Vehicles line item. The amount available for leasing the equipment in the current budget is $18,000.00 and the approximate lease payment will be $19,953.84. The original budgeted amount was $72,000 to purchase this equipment. Mr. DePrima assured members that they would be able to make up the difference through other accounts or by saving on other purchases.
Staff recommended awarding the bid to I.G. Burton Co., Inc. in the amount of $78,177.00 ($79,177.00 less the salvage value of $1,000.00 for the existing Vehicle #449) for the purchase of one (1) 20 Cubic Yard Rear Loading Sanitation Truck. This purchase will be financed through the City's Master Lease Agreement.
Responding to Mayor Hutchison, Mr. Koenig stated that although the issues with the purchase of the pickup truck from I. G. Burton have not been resolved, he has been assured that there will be no delay in the delivery of this purchase.
Mr. Salters moved to recommend awarding the bid to I.G. Burton Co., Inc. in the amount of $78,177.00 for the purchase of one (1) 20 Cubic Yard Rear Loading Sanitation Truck. The motion was seconded by Mr. Snaman and unanimously carried.
Proposed Master Term Loan Agreement - Mellon Bank
The City of Dover has budgeted to lease a significant portion of its equipment/vehicle needs this fiscal year. The lease agreements will be set up with semi-annual payments over four (4) years for each piece of equipment. Since the City is a governmental unit, a tax-exempt interest rate was provided, thus lowering the borrowing cost. New Castle County has a similar arrangement and they are satisfied with this type of financing.
Proposals were requested from four (4) financing vendors and three (3) three proposals were received as follows:
G E Capital - Interest Rate 5.13%
G E Capital proposes to deposit $3,000,000 into an escrow account on the City's behalf. The City would be responsible for escrow agent fees and fees associated with establishing the account. The $3,000,000 would be repaid over a four-year period semi-annually with the City earning interest on the unused funds in the escrow account; however, the City would also pay interest on the outstanding balance of the lease agreement.
Wilmington Trust Company - Interest Rate 65% of Prime (Currently 4.3875%)
Under the Wilmington Trust proposal, they are suggesting a floating rate at 65% of the national commercial rate (prime) with semi-annual payments on each piece of equipment financed. They hold title to the equipment for collateral. There are no fees or pre-payment penalties associated with the lease. At the current time, they do not want to do fixed-rate loans.
Mellon Bank - Interest Rate 53.9% of Prime (Currently 3.64%)
Mellon's proposal also includes a floating rate; however, they are suggesting it be changed to a fixed rate as each purchase of equipment is funded. This would aid in budgeting the lease payments with a fixed amount over four years with semi-annual payments. The full faith and credit of the City of Dover will collateralize the lease agreement, not the equipment. There are no fees or pre-payment penalties. The City Solicitor has reviewed and approved the Mellon proposal.
Staff recommended approval of the Master Term Loan Agreement Proposal submitted by Mellon Bank with a current interest rate of 3.64%. The loan is not to be used for aggregate amounts under $25,000; and the Finance Director will present a Quarterly Activity Summary Report to City Council.
Mr. Ruane moved to recommend approval of staff’s recommendation, seconded by Mr. Salters and unanimously carried. Note: This matter was considered during the Council Meeting later the same evening for final approval.
Comprehensive Review of City Code - Chapter 4.5 - Bicycles
In conjunction with the City’s Comprehensive Review of the City Code, staff submitted proposed amendments to Chapter 4.5 - Bicycles of the Dover Code.
Mr. Ruane indicated that he requested information on model bike Codes from DelDOT and the City of Dover Police and has not yet received responses from either.
Mr. Ruane moved to table the Comprehensive Review of 4.5 - Bicycles to allow time for input from the Dover Police and DelDOT, seconded by Mrs. Street and unanimously carried.
Mr. Salters moved for adjournment, seconded by Mr. Snaman and unanimously carried.
Meeting Adjourned at 6:25 P.M.
SAFETY ADVISORY COMMITTEE
The Safety Advisory Committee met with Chairman Truitt presiding. Members present were Councilmen Carey and Ritter, Mr. Tolbert, and Mr. Wolfe.
Proposed Ordinance Amendment - Numbering of Buildings
During the committee meeting of June 25, 2001, members considered proposed amendments to Chapter 19, Article VII - Numbering of Buildings, Section 19-114 of the Dover Code. The proposed amendments, as recommended by the Fire Marshal and Fire Safety Standards Committee, would improve the building numbering requirements so that they are more visible and easier to locate for emergency vehicles. Concerned that the ordinance did not specify the size of apartment complexes and, as written, would include apartment buildings not located in a complex, such as those with street addresses, members tabled action to allow staff the opportunity to clarify the intent of the ordinance as it pertains to apartments.
Mr. Carey moved to lift the item from the table, seconded by Mr. Ritter and unanimously carried.
Mr. Truitt stated that the amendment was revised to clarify that 12-inch letters are only required in apartment complexes with two (2) or more buildings not assigned street addresses, as recommended by the committee.
Responding to Mr. Speed, Mr. DePrima stated that the Fire Marshal has reviewed and approved the revision.
Mr. Carey moved to recommend adoption of the proposed ordinance to amend Chapter 19, Article VII - Numbering of Buildings, Section 19-114 (Attachment #2) as recommended by staff. The motion was seconded by Mr. Tolbert and unanimously carried.
Mr. Carey moved for adjournment, seconded by Mr. Wolfe and unanimously carried.
Meeting Adjourned at 6:29 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Ruane presiding. Members present were Councilmen Truitt and Speed, and Mr. Nichols. Mr. Lambert was absent.
Request to Change Street Names - Renaming of Jason Street to Raymond Street
During their June 19, 2001 meeting, the Planning Commission considered a petition submitted by Reverend Raymond Fisher to rename the current Jason Street to Raymond Street.
Mr. Petit de Mange explained that the request was in response to a request by the Planning Commission to rename Waters Street to avoid confusion with Water Street in downtown Dover. A petition was submitted requesting the renaming of Waters Street to Jason Street, therefore, a companion petition was submitted to rename the existing Jason Street to Raymond Street to avoid duplication of the Jason Street name.
The Planning Commission recommended approval of the street name change, conditioned upon the name being authorized by the Kent County Emergency Dispatch Center. (Note: Raymond Street has been approved by Kent County).
Mr. Truitt moved to recommend approval of the request to rename Jason Street to Raymond Street, as recommended by the Planning Commission, seconded by Mr. Nichols and unanimously carried. (It is noted that a public hearing is required and it is recommended that the public hearing be scheduled for August 13, 2001 at 7:30 p.m.).
Request to Change Street Names - Renaming of Waters Street to Jason Street
During their June 19, 2001 meeting, the Planning Commission considered a petition submitted by Mrs. Evelyn Jason Peters to rename Waters Street to Jason Street.
Mr. Petit de Mange explained that the request was in response to a request by the Planning Commission to rename Waters Street to avoid confusion with Water Street in downtown Dover.
The Planning Commission recommended approval of the street name change, conditioned upon the name being authorized by the Kent County Emergency Dispatch Center. (Note: Jason Street has been approved by Kent County).
Mr. Nichols moved to recommend approval of the request to rename Waters Street to Jason Street, as recommended by the Planning Commission, seconded by Mr. Truitt and unanimously carried. (It is noted that a public hearing is required and it is recommended that the public hearing be scheduled for August 13, 2001 at 7:30 p.m.).
Request for Abandonment - Janes Circle
Members considered a request received from Mr. Charles B. Hitchen for abandonment of Janes Circle, a public street running east to west, lying on the easterly side of Janes Road, at the southerly end of Janes Road and parallel to Horsepond Road, being 50 feet wide and approximately 115 feet in length, comprising 5,750 square feet, more or less.
The Planning Commission recommended approval of the abandonment of Janes Circle as requested by Mr. Hitchens, conditioned upon the subject right-of-way land area being divided equally between the two (2) adjoining properties and that all legal fees associated with preparation of deeds of transfer and other property records be the sole responsibility of the petitioner, Mr. Hitchens. In formulating their recommendation, the Planning Commission considered that the applicants’ property is the only developed house and only residential lot to front on Janes Circle.
Mr. Speed questioned why Mr. Hitchens would be required to pay all costs associated with the abandonment if another party would be receiving half of the parcel. Mrs. Green, City Clerk, stated that the City Solicitor would prepare the deeds and submit a settlement sheet to each property owner for the associated costs. Mr. Petit de Mange indicated that normally the costs are split between all parties receiving a portion of the parcel.
Mr. Truitt moved to recommend approval of the abandonment (Attachment #3) of Janes Circle, as recommended by the Planning Commission, seconded by Mr. Nichols and unanimously carried. (It is noted that it is required to adopt a Resolution setting a public hearing. It is recommended that the public hearing be scheduled for August 13, 2001 at 7:30 p.m.).
Evaluation of Bids - Cast Aluminum Light Poles with Acorn Shaped Luminaries for the North Street Sidewalk Improvements Project
Mr. Petit de Mange explained that the Main Street Design Committee has developed a three-phase project to improve the image of the gateway to downtown Dover. The Design Committee considered pedestrian amenities, landscape improvements, and lighting. In conjunction with the North Street Sidewalk Improvements Project and the renovation of the Capitol Theater, staff prepared specifications for the purchase of twenty-two (22) new street light poles to enhance the streetscape improvements planned for North Street between South State Street and South Governors Avenue. Bids were received as follows:
United Electric Supply - Dover, DE $ 39,960.00
Rexel/Consolidated Electric Supply - Dover, DE $ 36,733.00
Dover Electric Supply Co., Inc. - Dover, DE $ 38,117.20
Tecot Electric Supply Co., Inc. - Dover, DE $ 37,793.00
Wesco, - Richmond, VA No Bid
Landscape Architectural Services, Inc. was requested to review the bids and present a recommendation regarding the validity of the low bid. Based on their review, Landscape Architectural Services, Inc. recommended awarding the bid, in the amount of $36,733.00 to Rexel/Consolidated Electric Supply.
Funding for the purchase of the lights is included in the North Street Sidewalk Improvement Project listed in the FY 2002 Streets Division Operating Budget. A total of $125,000 is allocated for this project in FY 2002. The remaining funds will be used to repair curb and concrete sidewalks in addition to constructing new sidewalks with brick accents along the North Street project area.
Responding to Mr. Ruane’s concern that there may not be enough funds to complete the lighting and the curb repairs and sidewalk installation, Mr. DePrima assured him that the project could be completed within the budgeted amount of $125,000.
Mr. Ruane requested that a breakdown of funding for the sidewalks be made available prior to August 13th to provide members sufficient time for review.
Mr. Truitt asked if this project was tied in to the development of parking space behind Dover Newstand. Mr. DePrima stated that the design of both projects would be coordinated for uniformity of appearance and conformity to design standards.
Responding to Mr. Nichols, Mr. Koenig indicated that the existing curbs would be removed to install underground electric cable and elevated curbs. Mrs. Mitchell commented that the telephone company has refused to place their lines underground; therefore, the telephone poles will remain.
Mr. DePrima indicated that the Capital Theater has been working with the phone company and that the City has installed the conduit for future installation of underground telephone cables. Several members suggested taking a firm stand with the telephone and cable companies regarding underground lines.
Staff recommended awarding the bid to Rexel/Consolidated Electric Supply in the amount of $36,733.00 for the purchase of twenty-two (22) cast aluminum light poles with acorn shaped luminaries for the North Street Sidewalk Improvements Project.
Mr. Nichols moved to recommend approval of staff’s recommendation, seconded by Mr. Truitt and unanimously carried.
Evaluation of Bids - 2001 Resurfacing Program
In conjunction with the City of Dover's Capital Investments Plan, it is proposed to resurface various streets and alleys throughout the City of Dover during the 2001 construction season. The following twenty (20) locations were outlined in the proposed scope of work prepared by the Department of Public Works:
Roosevelt Avenue Shank Road Governors Ave. East Alley
Fiddler's Green Pine Street * New Castle Ave. East Alley
Continental Drive Lotus Street * Elm Terrace North Alley *
Woodcrest Drive E. Loockerman St. (One Way) City Hall Employees Parking Lot
Woodcrest Turn Clara Street Extended Bradford Street Parking Lot
Laurel Drive * Edgehill Alleys City Hall Parking Lot
Turnberry Drive * Greenhill Road Alleys
Bids were received as follows:
George & Lynch, Inc., Dover, DE $ 796,551.75
Ralph Cahall & Son, Inc., Smyrna, DE $ 938,811.45
Daisy Construction Company, New Castle, DE $ 995,032.95
The Average Cost Breakdown is as follows:
George & Lynch, Inc. $ 7.34 / square yard
Ralph Cahall & Son, Inc. $ 8.65 / square yard
Daisy Construction Company $ 9.17 / square yard
The low bid of $7.34 per square yard represents an increase of 17.82% over the low bid from the 2000 Resurfacing Program.
The funding source for the above referenced locations is a combination of State Municipal Street Aid, Suburban Street Aid Agreements, and the FY-2002 Street Department Operating Budget. Locations followed by an asterisk are locations which Suburban Street Aid funds have been requested but not yet secured. Unless funds are secured for these locations, they will be deleted from the program.
Mr. Ruane requested that a breakdown of funding be made available prior to August 13th to provide members sufficient time for review. He also suggested a report of the City’s Capital Improvement Plan with regard to concrete and paving be scheduled for review by the committee during the August 13, 2001 meeting.
Staff recommended awarding the contract for the 2001 Resurfacing Program to George & Lynch, Inc. in the amount of $796,551.75.
Mr. Speed moved to recommend approval of staff’s recommendation, seconded by Mr. Nichols and unanimously carried.
Mr. Speed moved for adjournment of the Council Committees Meeting, seconded by Mr. Nichols and unanimously carried.
Meeting Adjourned at 7:12 P.M.
Respectfully submitted,
William P. McGlumphy
Council President
WPM/tm
S:ClerksOfficeAgendas&MinutesCommittee-Minutes20017-09-2001.min.wpd