COUNCIL COMMITTEES
The Council Committees Meeting was held on March 9, 1998 at 6:30 p.m., with Council President Christiansen presiding. Members of Council present were Mr. Lambert, Mr. Pitts (arrived at 7:00 p.m.), Mr. Leary, Mr. Truitt, Mr. Carey, Mrs. Malone and Mayor Hutchison. Mr. Salters and Mr. Weller were absent.
AGENDA ADDITIONS/DELETIONS
Mrs. Malone stated that it has been brought to her attention that a letter has been received from DelDOT regarding traffic issues on Mifflin Road. She requested that this matter be placed on the Utility Committee to allow a constituent to address the matter.
Mr. Leary moved for approval of the agenda as amended, seconded by Mrs. Malone and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Councilman Leary presiding and Councilwoman Malone present. Chairman Salters and Mr. Merritt were absent. Mr. Leary deputized Mr. Lambert and Mr. Carey to serve as members.
Purchase of Vehicles - Police Department
The Police Department purchases a certain number of vehicles every year through its budget. For the current fiscal year, a budget savings has been realized in the vehicles purchase account. Use of these savings for the purchase of vehicles this fiscal year will reduce next year’s expenses.
The Police Department’s current budget includes funds for the purchase of eight (8) vehicles at a price of $184,500. Seven of the eight vehicles are standard police vehicles which are purchased through the State Contract. These seven vehicles have already been ordered and the funds for their purchase in the amount of $126,940 are already obligated. The eighth vehicle, which is the Animal Control pickup, was outside the Standard Police Vehicle Contract and was to be ordered separately. Because of lower than anticipated prices on the police vehicles, additional funds were available to purchase vehicles ahead of schedule which will result in a savings to next year’s budget. Of the $184,500 budgeted for vehicles, $126,940 is obligated towards the purchase of seven police vehicles, leaving a balance of $57,560. With this remaining balance, the Police Department now wishes to purchase the eighth budgeted vehicle (Animal Control pickup), the purchase of a DARE van, and the purchase of vehicle that will be assigned to the Mayor, as follows:
Animal Control Pickup Truck - 1998 Ford F150 4x4 $20,840
DARE Van - 1998 Ford Cargo Van 15,927
Police Vehicle - 1998 Ford Crown Victoria (assigned to Mayor) 20,543
TOTAL $57,310
The Police Department requests authorization to issue a purchase order to Winner Ford of Dover in the amount of $57,310 for the purchase of three vehicles, as outlined above.
Referring to the purchase of a vehicle for the Mayor, Mr. Lambert stated that it is his understanding that when the Mayor is finished with the vehicle, it will be turned back to the Police Department so that it can be fully utilized prior to its retirement. Mr. Lambert stated his opinion that limitations should be placed on the use of the vehicle. He suggested that the Mayor not be permitted to use the vehicle for personal use outside the local area.
Mr. Leary relayed his feeling that the Mayor must be given some discretion on the use of the vehicle. Mrs. Malone agreed, stating that the Mayor is a professional and a past employee of the City of Dover. She felt that the Mayor should use his discretion in determining proper use of a City vehicle. Although she does not anticipate abuse of the vehicle’s use, Mrs. Malone relayed her feeling that our citizens would be very vocal if they felt the Mayor was abusing the benefit. She felt it unnecessary to place specific restrictions on the Mayor’s use of a vehicle, reminding members that there may be instances when the Mayor may need to drive to such areas as Washington D.C., Salisbury, MD, Wilmington, etc. on City business.
Mr. Lambert stated that he felt no need to restrict use of the vehicle while it is in the local area since the Mayor acts on behalf of the City 24 hours per day, seven days per week. He also expressed no need for restrictions on use of the vehicle outside the City limits or the State of Delaware as long as the trip is for official City business. He felt, however, that the Mayor should not be permitted to use the City vehicle for long distance personal travel.
Mr. Lambert explained that he is only attempting to set reasonable guidelines for the Mayor. It was Mr. Leary’s feeling that the Mayor should have the use of the vehicle to perform the duties of the Office of Mayor as the Mayor sees fit. If, at some point in the future, it appears that Council or the citizens of Dover feel the need for restrictions, then Council should deal with the problem at that time.
Mr. Carey stated his opinion that the Mayor should have use of the City vehicle except for the times that he is going away on personal vacation. Other than when away on vacation, the Mayor is representing the City at all times, regardless of the type or time of the function.
Mr. Truitt stated his opinion that anyone in the position of full-time Mayor of the state capital, and the second largest city in the State, would have enough discretion to know what is or is not prudent use of a City vehicle.
Mr. Lambert also questioned if the purchase of a vehicle for the Mayor should be from Police Department funds. For cost accounting purposes, he suggested that the funds be transferred to the Mayor’s account for the purchase of the vehicle and for operation and maintenance costs. Mr. O’Connor explained that the Mayor is the overseer of the Police Department and the vehicle was to be permanently assigned to the Police Department. Mr. Leary suggested that Mr. Lambert discuss the matter with the Finance Director and if he feels that a transfer is necessary, the committee can address the matter at a later date.
Mrs. Malone moved for approval of the purchase of seven (7) police vehicles from the State contract at a cost of $126,940 and the purchase of three vehicles from Winner Ford at a cost of $57,310, stipulating that the vehicle being purchased for the Mayor be retired to the Police Department at the appropriate time and that the Mayor have full use of the City vehicle, with the exception of travel for personal vacations. The motion was seconded by Mr. Carey and carried with Mr. Lambert voting no.
Medical and Dependent Care Spending Accounts
The Internal Revenue Service (IRS) Code, Section 125, allows an employer to establish a plan under which employees can set money aside for medical insurance premiums, medical expenses and dependent care expenses. The amounts set aside by the employees from their wages will be exempt from federal and state income taxes and FICA tax. The program for the health insurance premium is already in place. The plan for the Medical (expense) Spending Account (MSA) and Dependent Care (expense) Account (DCA) is being proposed and the report submitted by the Finance Director provides the information on this plan.
Mr. Karia explained that under this plan, an employee contributes wages into their MSA and/or DCA account every pay period. The City will open a separate bank account for these funds and will retain a third party administrator (TPA) to administer the plans. The employee would send the receipt for their deductible or non-reimbursed medical expenses and/or dependent care directly to the TPA. The TPA will reimburse the employee every two weeks. Mr. Karia stated that detailed information on the plan has been distributed to all employees and informational workshops have been held.
The City may provide a working capital loan of $3,000 to $5,000 to this fund. The funds will be returned to the City by December 1998.
The TPA expenses will be paid from the following sources:
‒ Interest earnings on the account
‒ Remaining money from employees’ contributions
‒ City Contribution - estimated at the $500 to $1,000 range
The City’s savings on employer FICA is estimated to be $700 to $1,000. Once the program is implemented, actual figures will be calculated and reported to the Mayor and Council through the Finance Department’s biweekly report.
Referring to employee contributions which remain unpaid by the end of the year, Mrs. Malone asked if employees are reimbursed. Mr. Karia explained that if the money is not used by the end of the plan year, the monies will be used towards administrative expenses of the program. Technically, the employee would lose the money which is why they should estimate as closely as possible to their actual expenses. Mr. O’Connor stated that the funds are not kept by the City, but are used for future administrative costs for the plan.
Mrs. Malone stated her feeling that it is a great program which will benefit both the employee and the City. Mr. Carey agreed that the program is terrific but cautioned that employees should be conservative with their expected expenses for the first year or two.
Stating that the company where he is employed also offers this program, Mr. Lambert stated that it is very beneficial for child care expenses where expected costs can be very accurately projected. He reminded members that this program results in a savings to the City and to its employees.
Mr. Carey moved to recommend approval of the Medical and Dependent Care Spending Accounts as recommended by the Finance Director. The motion was seconded by Mrs. Malone and unanimously carried.
Meeting Adjourned at 7:00 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Lambert presiding. Members present were Councilman Pitts, Mr. Kramedas and Mr. Farling. In the absence of Mr. Weller, Mr. Carey was deputized to serve as a member of the committee.
Wastewater Facility Planning Grant Application - Proposed Resolution
The State of Delaware, Department of Natural Resources and Environmental Control, is providing matching funds to update and prepare a wastewater facility infrastructure plan. The City of Dover Wastewater Facility Plan of 1987 has accomplished most of the goals outlined in the current Plan and staff is now preparing a grant application to update the Plan. The new Plan will incorporate new development trends and proposed improvements to the City’s infrastructure to be implemented and constructed over the next 25 years. This plan will include areas inside and outside of the City of Dover’s current service areas. Since the proposed Facility Plan will include areas beyond the City limits, staff intends to have the proposed Plan qualified as a regional planning effort. This will allow funds to be requested in the amount of 50% of the estimated project cost of $65,000. The application process requires that City Council adopt a resolution endorsing the application for a Wastewater Facility Planning Grant in the amount of $65,000.
Mr. O’Connor explained that the cost of $65,000 is an estimate since the City has not yet sent out Requests for Proposals. Under a regional sewer plan, we are eligible for a 50% matching grant. It is a smaller percentage if the plan is limited to only the City. In updating our Wastewater Facility Plan, we believe it should be a regional plan since the City’s utilities extend beyond our corporate limits.
Responding to Mr. Leary, Mr. O’Connor stated that if the grant is approved this year, we would prepare RFP’s for distribution in late 1998 with the study to be underway in 1999.
Mr. Farling stated his support for the proposal but will refrain from voting since he manages this program through DNREC.
Mr. Carey moved to recommend adoption of the resolution (Attachment #1) to authorize staff to complete the application for a 50% matching Wastewater Facility Planning grant for the purpose of updating the 1987 Wastewater Facility Plan at an estimated project cost of $65,000. The motion was seconded by Mr. Kramedas and carried with Mr. Farling abstaining.
Mrs. Rexene Ornauer - Traffic Issues - Mifflin Road
In a letter to Mr. Tony DePrima, dated January 22, 1998, the Department of Transportation addressed traffic issues related to the proposed development of the Village of Cannon Mill. Mrs. Rexene Ornauer brought to the attention of the committee members that this letter addresses the proposed traffic light at Mifflin Road and Route #8. In this letter, it is pointed out that DelDOT feels that there may be additional traffic on Mifflin Road as a result of the installation of a traffic light. She read from the letter the recommendation, “that the City make a formal request to DelDOT’s Bureau of Traffic for the installation of a traffic signal at the intersection of Mifflin Road and Route #8 and that the request address the matter of traffic calming devices.
During its meeting this evening, City Council intends to review the draft of a letter to DelDOT on installation of the traffic signal. Mrs. Ornauer wanted to bring the matter of traffic calming devices to the attention of City Council prior to their review of the draft letter so that this issue could also be addressed as recommended by DelDOT. She reviewed several instances of traffic problems encountered on Route #8 associated with speeding and excessive traffic. Although she understands the City’s reluctance to request traffic calming devices without full knowledge of what those devices might be, she was concerned that if the matter is not addressed at some level, DelDOT officials will simply do nothing.
Mrs. Malone stated that it has been approximately four years since she and Councilman Leary attended a Mifflin Road Civic Association meeting when the round-about and traffic signals were discussed. During this period of time, many property transfers may have taken place. Mrs. Malone suggested that the Civic Association be given an opportunity to meet and make a recommendation to the City on the issue of traffic calming devices.
Mr. Leary noted that this evening is the first opportunity that members of Council have had to review the letter from DelDOT. Since it is a lengthy letter, with many attachments, he stated that he was hesitant to act too quickly but he did not want to hold up the letter requesting the traffic signal at Mifflin Road and Route #8.
Mr. DePrima, City Planner, relayed that the recommendation from DelDOT may have been taken out of context. He explained that the letter is from a division of DelDOT that deals specifically with traffic impact analysis and the letter was sent to Mr. DePrima in response to a particular item being considered by the DAC. This letter is the position of only one division of the department and is not the official position of DelDOT.
The committee took no action on the matter, but it was noted that this issue will be discussed later in the evening during the Council Meeting.
Meeting Adjourned at 7:20 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
RRC/