REGULAR COUNCIL MEETING
The Regular Council Meeting was held on December 11, 2000 at 7:30 p.m. with Council President Christiansen presiding. Council members present were Mr. McGlumphy, Mr. Pitts, Mr. Gorman, Mr. Truitt, Mr. Carey, Mrs. Malone, and Mr. Weller. Mr. Salters was absent.
Council staff members present were Chief Faulkner, Ms. Russell, Mr. O'Connor, Mrs. Mitchell, Chief Carey, Mrs. Green and Mr. Rodriguez. Mr. DePrima was absent.
OPEN FORUM
The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Christiansen declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action.
There was no one present wishing to speak during the Open Forum.
The invocation was given by Chaplain Wallace Dixon, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Mr. Weller requested the addition of item #5C, Evaluation of Proposals - Pear Street Warehouse Asbestos Abatement Project and item #5D, Bid - Emergency Response and Site Clean-Up Services Contractor.
Mr. Carey moved for approval of the agenda as amended, seconded by Mr. Weller and unanimously carried.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF NOVEMBER 27, 2000
The Minutes of the Regular Council Meeting of November 27, 2000 were unanimously approved by motion of Mrs. Malone, seconded by Mr. Gorman and bore the written approval of Mayor Hutchison.
PUBLIC HEARING/FINAL READING - REZONING OF PROPERTY LOCATED ON THE NORTHEAST CORNER OF EAST WHITE OAK ROAD AND HALSEY ROAD EXTENDED, OWNED BY JAMES D. AND MARY JANE MCGINNIS
A public hearing was duly advertised for this time and place to consider rezoning of property located on the northeast corner of East White Oak Road and Halsey Road Extended, owned by James D. and Mary Jane McGinnis. The property is currently zoned C-PO (Commercial/Professional Office) and the proposed zoning is RG-2 (General Residence).
Council President Christiansen noted that a letter was received from the property owners requesting withdrawal of the rezoning application at this time. He also noted that a petition was submitted by adjacent property owners in opposition to the rezoning.
Mr. Truitt moved to accept the letter requesting withdrawal of the rezoning application, seconded by Mrs. Malone and unanimously carried.
APPOINTMENTS - COUNCIL EMPLOYEES
Building Inspector
Mr. Carey moved to nominate Mr. Anthony DePrima to serve as Building Inspector, seconded by Mrs. Malone. Mrs. Malone moved that nominations be closed, seconded by Mr. Weller and unanimously carried. The motion appointing Mr. DePrima to serve as Building Inspector was unanimously carried.
City Assessor
Mr. Weller moved to nominate Mr. Jerome Cooper to serve as City Assessor, seconded by Mr. Pitts. Mr. Truitt moved that nominations be closed, seconded by Mr. Pitts and unanimously carried. The motion appointing Mr. Cooper to serve as City Assessor was unanimously carried.
Assistant City Assessor
Mrs. Malone moved to nominate Ms. Cheryl Russell to serve as Assistant City Assessor, seconded by Mr. Carey. Mrs. Malone moved that nominations be closed, seconded by Mr. Truitt and unanimously carried. The motion appointing Ms. Russell to serve as Assistant City Assessor was unanimously carried.
APPOINTMENT - HOUSING CODE BOARD OF APPEALS - ONE YEAR TERM TO EXPIRE MAY 14, 2001 (RECOMMENDED BY MAYOR HUTCHISON)
Mayor Hutchison recommended the appointment of Mrs. Rexene Ornauer to the City of Dover Housing Code Board of Appeals. This appointment is for a one-year term to expire May 14, 2001.
Mr. Weller moved for approval of the appointment of Mrs. Ornauer, as recommended by Mayor Hutchison, seconded by Mr. McGlumphy and unanimously carried.
APPOINTMENTS - ST. JONES GREENWAY COMMISSION - THREE-YEAR TERMS TO EXPIRE DECEMBER 31, 2003 (RECOMMENDED BY MAYOR HUTCHISON)
Mayor Hutchison recommended the re-appointment of Dr. Robert Gorkin and Mr. Michael P. Mercer to the St. Jones Greenway Commission. The appointments are for three-year terms to expire December 31, 2003.
Mrs. Malone moved for approval of the re-appointments of Dr. Gorkin and Mr. Mercer as recommended by Mayor Hutchison, seconded by Mr. Carey and unanimously carried.
UTILITY COMMITTEE REPORT
The Utility Committee met earlier this evening with Chairman Weller presiding.
Evaluation of Proposals - Pear Street Warehouse Asbestos Abatement Project
Members were reminded that the City recently purchased a warehouse located on Pear Street. During renovation of the warehouse, City crews discovered several areas which were thought to have asbestos-containing material. As a result, Compliance Environmental, Inc. was contacted who, along with another consulting firm, conducted an asbestos survey. Based on the survey, Compliance Environmental, Inc. prepared a request for proposals to qualified contractors for asbestos abatement at the Pear Street warehouse. Upon their receipt, Compliance Environmental, Inc. evaluated the proposals and presented a recommendation affirming the qualifications and cost estimate of the apparent low bidder, EMR Services, Inc.
Staff recommended that a purchase order be issued to EMR Services, Inc. for the interior asbestos removal at the Pear Street warehouse in the amount of $19,014, and that a separate purchase order be issued in the amount of $23,820 on or before June 1, 2001 to EMR Services, Inc. for the second floor and exterior removal to coincide with the replacement of the warehouse roof. The total cost of the asbestos abatement project at the Pear Street warehouse is not to exceed $42,834.
The committee recommended approval of staff’s recommendation.
Mr. Weller moved for approval of the committee’s recommendation, seconded by Mrs. Malone and carried by a unanimous roll call vote (Mr. Salters absent).
Bid - Emergency Response and Site Clean-Up Services Contractor
A major goal of the Electric Department is to ensure that all environmental procedures are followed in response to any type of hazardous spills. It is the desire of the Electric Department that a capable contractor perform emergency response and scheduled site clean-up services of spills of dielectric oil, gasoline, and other chemicals on land and surface water.
Staff solicited proposals for a qualified company to provide emergency response and site clean-up services for a period of three (3) years. The contractor must be capable of performing site assessment involved with electrical and service equipment release of fluids. The contractor must also be available for emergency response to perform work in any situation requiring cleanup within two (2) hours. The contractor is to take an active and suggestive role in a safe spill response, control, and cleanup on land and surface water. Members were provided the details regarding the bids received from Lewis Environmental Group and HMHTTC to provide the required manpower and equipment.
Based on the analysis of the proposals, staff recommended awarding the bid and three (3) year contract to Lewis Environmental Group for emergency response and site clean-up services.
The committee recommended approval of staff’s recommendation.
Mr. Weller moved for approval of the committee’s recommendation, seconded by Mrs. Malone and carried by a unanimous roll call vote (Mr. Salters absent).
Mr. Weller moved for acceptance of the Utility Committee Report, seconded by Mrs. Malone and unanimously carried.
FINAL READING - PROPOSED ORDINANCES
The First Reading of the following proposed ordinances was accomplished during the Council Meeting of November 27, 2000.
Mrs. Malone moved that the final reading of the proposed ordinances be acknowledged by title only, seconded by Mr. Pitts and unanimously carried.
Mr. Carey moved for adoption of the following ordinances, seconded by Mr. Weller and carried by a unanimous roll call vote (Mr. Salters absent):
Chapter 19.5 - Taxation, Article IV - Abatement of City Real Estate Taxes
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
That Section 19.5 of the Dover Code be amended by adding Article IV, Abatement of City Real Estate Taxes, as follows:
ARTICLE IV. ABATEMENT OF CITY REAL ESTATE TAXES
Sec. 19.5-31. Purpose.
In the opinion of council of the City of Dover, the abatement of City real estate taxes for certain qualifying industries and businesses defined herein best promotes the public welfare by providing incentives for them to expand or locate in the City of Dover, thereby creating new employment opportunities for the citizens of the City of Dover and ultimately strengthening the city's tax base.
Sec. 19.5-32. Authority.
The Constitution of the State of Delaware, Article VIII, Section 1, provides that real property located within the boundaries of any incorporated municipality may be exempted from municipal property tax by the municipality when in the opinion of the municipality it will best promote the public welfare.
Sec. 19.5-33. Qualifications for abatement.
Industries/businesses may qualify for property tax abatement either by meeting the industry function qualifications detailed in subsection (a) or the investment qualifications detailed in subsection (b).
(a) Qualifying industries/businesses by function. Manufacturers and financial institutions as defined by FCDA, CCBAA, and subsequent legislation and home offices and operating units of insurance companies shall be qualifying industries to include but not [be] limited to distributors, transportation (air, rail, barge, truck), printing and publishing, and food processing.
(1)Investment and employees. The qualifying industry must invest at least one million dollars ($1,000,000.00) in a qualifying new or expanded facility in the City of Dover and hire at least twenty (20) qualified employees (including owners/operators), seventy-five (75) percent of whom shall be City of Dover/Kent County residents not employed by the qualifying industry/activity at the time of its relocation/expansion within the City of Dover. Council may, at the time of application, reduce the seventy-five (75) percent requirement to a lesser percentage but not less than fifty (50) percent. The qualifying industry agrees to supply information verifying compliance with this section in whatever legally acceptable manner council shall so request.
(b) Qualifying industry/businesses by investment. Industries/businesses that do not meet the qualifications as specified in subsection (a) can nevertheless qualify for property tax abatement by meeting the following investment and employment criteria:
(1)Investment and employees. The qualifying industry/business must invest a minimum of three million dollars ($3,000,000.00) in a new or expanded facility in the city located within one of the following zoning classifications: Industrial Park Manufacturing, Industrial Park Manufacturing 2, Manufacturing, and hire at least fifteen (15) qualified employees (including owners/operators), seventy-five (75) percent of whom shall be city/county residents not employed by the qualifying industry/activity at the time of its relocation/expansion within the city. Council may, at the time of application, reduce the seventy-five-percent requirement to a lesser percentage but not to less than fifty (50) percent. The qualifying industry agrees to supply information verifying compliance with this section in whatever legally acceptable manner council shall so request.
(c) Benefits. Council may abate city real estate taxes on a ten-year sliding scale as follows or upon any other scale or method deemed most advantageous by council for the public welfare.
Year of Operation Reduction of Taxes
1 90%
2 80%
3 70%
4 60%
5 50%
6 40%
7 30%
8 20%
9 10%
10 0%
Unless otherwise directed by council, year one of the abatement period will commence with the first property tax billing following the completion of the qualifying new or expanded facility and the meeting of all requirements as detailed in section 19.5-33(a) and (b). Abatement for expanded facilities will be limited to expansion value only.
All quarterly property taxes for new construction, as defined in section 49A of the City Charter, will likewise be abated for qualifying new or expanded facilities.
The property tax abatement program will have no effect on both city wide revaluations of property values for taxation purposes and the institution of those new values.
(d) Definitions.
(1)Qualified facility is any qualified property located in the city that constitutes a new or an expanded facility, located within one of the following zoning classifications: Industrial Park Manufacturing, Industrial Park Manufacturing 2, and Manufacturing, and that is used by taxpayer in or in connection with a qualified activity.
(2)Qualified property is any building and its structural components and any other improvement to real property. It is also the land on which such building or other improvements are located if ownership of said land and structural improvements is identical. If any property is owned or leased by the taxpayer in common with any other person or persons, such property may constitute "qualified property" only to the extent of the taxpayer's proportionate interest.
(3)Qualified activity is any activity constituting manufacturing (other than any repair, refurbishing, retooling, recycling or other similar process or procedure that merely preserves or restores the value of a product or that does not change the inherent nature of a product or material). It is also any activity engaging in business as a wholesaler. It is CCBA and any subsequent legislation as enacted by the state. It is also any home offices and operating units of insurance companies. It is also any combination of activity described herein.
(4)New facility is any qualified facility (other than an expanded facility or a replacement facility) constructed by the taxpayer after January 1, 2001. For the purposes of this article, constructed shall mean the issuance of a building permit for one million dollars ($1,000,000.00) or more with regards to subsection (a), and the issuance of a building permit for three million dollars ($3,000,000.00) or more with regards to subsection (b).
(5)Expanded facility is any qualified property that is modified with an improvement or addition (other than a replacement resulting from the acquisition, construction, reconstruction, installation, or erection of improvements or additions resulting from repair, refurbishing, retooling, recycling, or other similar process or procedure that merely preserves or restores the value of an existing facility and not including any improvement or addition that in the determination of council does not constitute an integral part of a qualified activity), if such improvements or additions are placed in service by the taxpayer after January 1, 2001. Abatement will only be to the extent of the taxpayer's qualified investment in such improvements or additions.
(6)Placed in service and original use shall have the meanings ascribed to such phases under Art. 167 of the Internal Revenue Code (26 U.S.C.A. Art. 167) and regulations promulgated thereunder.
(7)Qualified employee is any person employed within the City of Dover/Kent County on a regular and full-time basis.
(8)Qualified investment for any taxable year is based on the value of a qualified facility as of the last business day of such taxable year.
(9)Related person means a corporation, partnership, association, or trust controlled by the taxpayer; or an individual, corporation, partnership, association, or trust that is in control of the taxpayer; or a corporation, partnership, association, or trust controlled by an individual, corporation, partnership, association, or trust that is in control of the taxpayer.
(10)Control with respect to a corporation means ownership, directly or indirectly, of stock possessing fifty (50) percent or more of the total combined voting power of all classes of the stock of such corporation entitled to vote and fifty (50) percent or more of the shares of such corporation entitled to vote and fifty (50) percent or more of the total number of shares of all other classes of such corporation's stock.
(11)Control with respect to a trust means ownership, directly or indirectly, of fifty (50) percent or more of the beneficial interest in the principal or income of such trust. The ownership or stock in a corporation, of a capital of profits interest in a partnership or association or of a beneficial interest in a trust shall be determined in accordance with the rules for constructive ownership of stock provided in Art. 267 (c) of the Internal Revenue Code (28 U.S.C.A. Art. 267 (c))
Sec. 19.5-34. Application process.
(a) An initial application for abatement shall be by letter sent to the city assessor by the taxpayer specifying the following: exact provisions under which the applicant qualifies, i.e., type of industry, financial investment, level of City/Kent County resident staffing, level of ownership and control, etc.
(b) Applications may be made at any time prior to the issuance of a certificate of occupancy for the subject property. Applications for tax abatement received after the certificate of occupancy for a subject property has been issued will be rejected.
(c) The city assessor shall notify the applicant within thirty (30) days if the project would meet all conditions for approval.
(d) After a certificate of occupancy is issued for the subject property, the city assessor shall determine if all qualifications for a tax abatement have been met. When so satisfied, the city assessor shall present the abatement request, with all qualifying documentation, to city council for approval.
(e) When the application cannot meet all qualifications for tax abatement at the time the certificate of occupancy is issued, an automatic twenty-four-month approval extension shall be activated. If qualifications remain unfulfilled at the expiration of the approval extension, the abatement application will be denied by the city assessor.
(f) Council shall require an annual statement of compliance as a condition to remain eligible for the abatement program. The statements, due by April 15 of each year, shall be used to insure continued fulfillment of all abatement qualifications. Failure to submit a requested statement of compliance shall disqualify any participation in the abatement program for the property tax billing following the missed April 15 deadline. The reduction of taxes percentage for the disqualified billing year will be extinguished as unused, with the next lower percentage becoming available for the following tax year.
Sec. 19.5-35. Termination of ownership.
If, prior to the expiration of the ten-year abatement period, the qualifying facility is sold to a non-associated outside party, council has the option to both cancel all remaining years of the abatement program for the facility, and/or require the selling party to reimburse the city for all tax abatement amounts allowed. The acceptance of any tax rebates under this article constitutes acceptance of this reimbursement provisions.
ADOPTED: December 11, 2000
Chapter 10 - Housing and Property Maintenance, Article V - Rental Dwellings, Division 1- Generally, Section 10-88 - Agent Required
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
That Chapter 10 Housing and Property Maintenance, Article V, Rental Dwellings, Division 1 - Generally, Section 10-88 - Agent Required, of the Dover City Code of Ordinances by deleting it in its entirety and replacing it as follows:
Sec. 10-88. Agent required.
(a) Any owner of a rental dwelling residing outside of the Kent County, Delaware, shall be required to have a licensed property manager residing or having an office located in Kent County, Delaware or a family member or other designated individual who does not manage any other rental real estate for a fee and who resides in Kent County, Delaware acting as a property manager. The property manager, including family members and designated individuals, shall have charge, care and control, of the rental dwelling, and shall provide access to the rental dwelling for inspection upon request by the building inspector within a reasonable time.
(b) Any corporation or partnership owning a rental dwelling shall have a designated member, partner, or employee having charge, care, and control of the rental dwelling. The designated member, partner or employee shall reside in or have an office located in Kent County, Delaware, or shall be required to have a licensed property manager residing or having an office located in Kent County, Delaware, or a family member or other designated individual who does not manage any other rental real estate for a fee, and who resides in Kent County, Delaware acting as a property manager. The property manager, family members or other designated individuals, shall have charge, care and control, of the rental dwelling, and shall provide access to the rental dwelling for inspection upon request by the building inspector within a reasonable time.
ADOPTED: December 11, 2000
Chapter 11 - Licenses, Section 11-1 - Definitions
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
That Chapter 11 - Licenses, Division 1 - Generally, Section 11-1, Definitions of the Dover Code of Ordinances to add the following definition to the list of definitions in the appropriate alphabetical order.
Real Estate Property manager includes every person or company, whether operating from the City or not, in the business of real estate rental property management and not required to be licensed as a Real Estate Broker of Record, Appraiser, or Real Estate Agent by the Delaware Real Estate Commission.
ADOPTED: December 11, 2000
Chapter 11 - Licenses, Section 11-4 - License Required; fee; subsection (d)
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
That Chapter11 Licenses, Division 1 - Generally, Section 11-4 - License required; fee; Subsection (d) by adding the following fee schedule in the appropriate alphabetical order.
(d) No person shall conduct or engage in any of the following trades, businesses, or occupations within the City without a license and paying the appropriate fee indicated below:
Real Estate Property manager:
1 to 3 Units managed . . . . . . . . . . . . . . . . . . . . . . . . . 44.00
4 to 10 Units managed . . . . . . . . . . . . . . . . . . . . . . . . . 83.00
10+ Units managed . . . . . . . . . . . . . . . . . . . . . . . . . 110.00
ADOPTED: December 11, 2000
MISCELLANEOUS
Fire Chief Carey was given a standing ovation for his service during the past four (4) years serving as the Fire Chief for the City’s Fire Department, Robbins Hose Company No. 1.
Mr. Weller moved for adjournment, seconded by Mrs. Malone and unanimously carried.
Meeting Adjourned at 7:48 P.M.
JANICE C. GREEN
CITY CLERK
All orders, ordinances and resolutions adopted by City Council during their meeting of December 11, 2000, are hereby approved.
JAMES L. HUTCHISON
MAYOR
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