COUNCIL COMMITTEES
The Council Committees Meeting was held on December 14, 1993, at 7:00 p.m., with Council President Christiansen presiding. Members of Council present were Mr. Hare, Mr. Hutchison, Mr. Lambert, Mr. Leary, Mrs. Malone, Mr. Pitts, Mr. Salters, Mr. Tudor and Mayor Knopf.
AGENDA ADDITIONS/DELETIONS
Mr. Lambert requested that items #1 and #5 on the Utility Committee be switched.
Mr. Hutchison moved that the agenda be approved as amended, seconded by Mr. Lambert and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Salters presiding. Members present were Councilmen Hare and Leary. Mr. Hindman was absent. In the absence of Mr. Hindman, Mr. Salters appointed Mr. Carey to serve as a temporary member of the committee. Mr. Salters explained that on item #4 (Proposed Charter Changes), the entire Council would participate as a Committee of the Whole.
REQUEST FOR WAIVER OF STREET WIDTH AND CUL-DE-SAC LENGTH - OAKMONT PARK SUBDIVISION
This project was previously approved by Council in 1991. However, because construction was not started within the 12 month period after final approval, it must be re-approved.
The Planning Commission reviewed and again approved this development at its meeting of November 15, 1993, subject to Council's approval of the requested waivers.
Mr. DePrima, City Planner, explained that the property is located along the southerly side of College Road, consisting of approximately 4.13 acres. The plan proposes the construction of a cul-de-sac street, which would provide access to eight residential lots to be created by this Plan. The Plan also reflects the provision for approximately 1.15 acres of Neighborhood Open Space. The Planning Commission offered the following recommendations to Council:
- Support the proposed subdivision design with a cul-de-sac street length of 540'.
- Support a 28' pavement width, for a low traffic volume street. The right-of-way width would remain at 60'.
- Restrict off street parking along the southerly side of the street and the cul-de-sac. "No Parking" signs shall be required to notify the public.
- Establish a forestry lane on the south side of lot #8 to provide access to the wooded area.
Mr. Hare moved to recommend approval of the request, as recommended by the Planning Commission. The motion was seconded by Mr. Leary and unanimously carried.
PURCHASE OF POLICE VEHICLE
Council has authorized the purchase of six police vehicles at $13,558 each. The State contract for the vehicles came in at $13,796 through a Ford dealer in New Jersey. Winner Ford of Dover has offered the vehicles with the same specifications and with additional items of (a) factory installed driver's side control spotlight and (b) cloth seats in front and vinyl seats in rear. The quoted price per vehicle is $13,789 which is $7 less than the State contract price. In addition to the quoted price, the City would also receive a $55 per vehicle cash discount for early payment which equates to a total discount of $330. New purchasing policies now require Council approval of all purchases in excess of $25,000, even though Council may have already approved the concept in the departmental budget approval. The Police Chief requested approval of the purchase of six vehicles from Winner Ford Dover. (He noted that the amount is $1,056 more than currently budgeted. The difference will be made up by savings from other purchases within the Police Department budget.)
Mr. Leary moved to recommend that the contract for the purchase of six police vehicles be awarded to Winner Ford Dover, for a total amount of $13,734 per vehicle. The motion was seconded by Mr. Carey and unanimously carried.
BUDGET REVISIONS
City Council approved budgets for fiscal year 1993-94 in June 1993. Due to changing circumstances, some revisions are needed in the budget. The Finance Director requested approval of the proposed budget revisions submitted in his report.
Mr. Karia explained that the revisions are transfers of funds from one department to another and do not represent a net increase in the budget. A proposed addition of $200,000 (Track NOX related projects) in the Electric Production budget will be funded by funds that are available in the Improvements and Extension Fund.
Mr. Hare moved to recommend approval of the proposed budget revisions as recommended by staff (attachment #1). The motion was seconded by Mr. Leary and unanimously carried.
PROPOSED CHARTER CHANGES
Chairman Salters reminded committee members that the entire Council would act as a Committee of the Whole on the proposed Charter changes. Once the proposed Charter changes have been agreed upon, a public hearing will be held and City Council will be required to adopt an ordinance requesting the General Assembly's approval of the changes. The ordinance will require two readings prior to adoption.
Council President Christiansen referred to a gathering of four members of Council on November 26, 1993, assuring the public that the gathering was in no way intended to violate the Freedom of Information Act but was simply an attempt to come up with some rational method of addressing the issues before Council. In addressing the proposals, Council President Christiansen requested that the proposed salary issue be set aside at this time so that the other issues may be addressed.
Term Length
A proposal to extend the term lengths for Mayor and Council was considered. It was proposed to change the term for Mayor from two years to four years and to change the term for Council from two years to three years.
Council President Christiansen expressed his opposition to extension of term lengths for members of Council, feeling that it keeps the elected officials closer and more accountable to the citizens.
Mr. Leary stated that in the past he has supported four year terms for both the Mayor and members of Council, but agreed that a three year term for Council would be a good compromise. However, after reviewing a report from the City Clerk on the effect the three year terms would have on municipal elections, he recommended that either all terms be changed to four years or that only the Mayor's term be changed and members of Council continue with two year terms.
Mr. Tudor stated his opposition to extending terms for Mayor and Council, feeling that it is important to give the citizens an opportunity to defeat the election of a Council member if they feel they are not being properly represented.
Council members Lambert, Pitts, Malone and Hutchison stated their opinions that the terms should remain at two years for members of Council and the Mayor.
Chairman Salters stated that since there appears to be no support for a change, the matter will not be discussed further.
Duties of Mayor - (Section 14)
A change to Section 14 of the Charter, Duties of the Mayor, was reviewed.
Mr. Leary requested that the term "an interim appointment" be changed to read "any interim appointment". There was general discussion on the language regarding the interim appointment of a City Manager, but no further changes were made.
Mr. Hare objected to the Chief of Police reporting to the Mayor, feeling that the Chief of Police should report to the City Manager (who ultimately reports to the Mayor). He supported this concept so that the City Manager would have more control over the budget of the Police Department. Council President Christiansen stated that this is a proposal that warrants further consideration in the future.
Mr. Leary moved to recommend approval of the proposed amendments to Section 14 of the Charter, to be included in a package of proposed Charter changes. The motion was seconded by Mr. Hutchison and carried with Mr. Tudor voting no.
City Manager - Generally (Section 33)
It was suggested that the same change be made to Section 33 as was made to Section 14, as follows: That the term "an interim appointment" be changed to read "any interim appointment". It was agreed that the section of the proposal relating to the removal of the City Manager be changed to read, "Removal of the City Manager shall be by recommendation of the Mayor to Council or by Council to the Mayor". Mr. Hare voiced his objections to the change, stating that if the Manager is going to report to the Mayor, then only the Mayor should have the ability to remove the Manager from office.
It was also agreed that the following sentence be omitted: "The Manager shall be appointed for an indefinite time but shall be removable at the pleasure of the Council."
Mr. Leary moved to recommend approval of the proposed changes to Section 33 of the Charter, as amended, to be included in a package of proposed Charter changes. The motion was seconded by Mr. Hutchison and carried with Mr. Hare voting no.
Duties of the City Manager (Section 37)
Council members reviewed the draft proposal for Section 37 of the Charter. Council President Christiansen moved to recommend approval of the proposal as written, to be included in a package of proposed Charter changes, seconded by Mr. Leary and unanimously carried.
Remuneration - (Section 12)
Council members reviewed the draft proposal for Section 12 of the Charter. It was noted that the dollar amounts of remuneration is set by ordinance and should not be included in the Charter. It is proposed that the Charter be amended to read "The Mayor and each Council member, and others as outlined by ordinance, shall be remunerated for their services, the amount or amounts, to be determined by ordinance adopted by Council." The actual amount will be designated by Section 2-70 of the City Code.
Mr. Leary moved to recommend that Section 12 of the Charter be amended as proposed, to be included in a package of proposed Charter changes, seconded by Mr. Hutchison and unanimously carried.
Proposed Amendment to Sec. 2-70 of City Code
Mr. Lambert voiced his opposition to members of City Council setting a salary level for themselves. He suggested that a committee of private citizens be established to review and recommend a salary level for the Mayor and Council.
Mayor Knopf reminded Council that the filing deadline for Mayor is January 31, 1994 and he felt that remuneration for the position should be determined as soon as possible so that citizens interested in filing will have the salary information in ample time to make a decision.
Mr. Hare moved to recommend that the ordinance be amended to set the salary for the Mayor at $12,000 annually, plus an expense account of up to $4,000. Mr. Leary seconded the motion for discussion purposes.
After a considerable amount of discussion, the motion was withdrawn by Mr. Hare and Mr. Leary.
Mr. Hare moved to recommend that the Council President establish a committee of private citizens to evaluate the amount of remuneration to the Mayor and City Council members and to make a report to the Legislative and Finance Committee prior to their January 11, 1994 meeting. The motion was seconded by Mr. Leary and unanimously carried.
(NOTE: The necessary legislation will be prepared by the City Solicitor. The ordinance (attachment #2) requesting the General Assembly's approval of the legislation will require two readings by City Council prior to final approval. A Special Council Meeting will be set for the purpose of holding a public hearing on the proposed changes and to accomplish the first reading of the ordinance. A vote on the complete package of proposed Charter changes will be required at the Special Council Meeting, after the public hearing has been held.)
Mr. Salters moved to adjourn and recess for five minutes prior to commencement of the Parks and Recreation Committee meeting. The motion was seconded by Mr. Hutchison and unanimously carried.
Meeting Adjourned at 8:40 P.M.
PARKS AND RECREATION COMMITTEE
The Parks and Recreation Committee met with Chairman Pitts presiding. Members present were Councilwoman Malone, Councilman Tudor and Mr. Caballero. Mrs. Maxted was absent.
OAKMONT PARK SUBDIVISION - PAYMENT IN LIEU OF PARKLAND
This project was previously approved in 1991 by the Planning Commission, and the City Council subsequently approved a cash donation in lieu of land for parks and parkland. However, because the project did not start construction within the 12 month period after final approval, it must be re-approved. The Planning Commission reviewed and again approved this development at its meeting of November 15, 1993, subject to Council's approval of the parkland fund donation.
Mr. DePrima, City Planner, explained that the property is located along the southerly side of College Road, consisting of approximately 4.13 acres. The property is undeveloped, largely wooded and contains approximately 1.45 acres, which have been determined by the project engineer to be upland wetland areas. The Plan proposes eight residential lots and approximately 1.15 acres of Neighborhood Open Space. Because of the small acreage and wetland characteristics of the proposed Neighborhood Open Space area, the Planning Commission recommends that this land not be accepted as fulfillment of the Neighborhood Open Space requirement.
The City Assessor has determined the fair market value of the subject property to be $33,000. The Planning Commission recommends that a cash-in-lieu of land donation in the amount of 10% of the fair market value, or $3,300, be accepted by Council as fulfillment of the requirement.
Mr. Hare moved to recommend that a cash-in-lieu of land donation in the amount of 10% of the fair market value, or $3,300, be accepted by the City as fulfillment of the Open Space requirement for the Oakmont Park Subdivision. The motion was seconded by Mrs. Malone and unanimously carried.
YOUTH ENTERTAINMENT CENTER
Chairman Pitts explained that Mr. James Brown asked for an opportunity to explain his plans for a Youth Entertainment Center in Dover. Approval by the committee or Council is not necessary and the presentation is informational only.
Mr. Jimmy Brown, Mr. Dave Apple and Mr. Keith Russ addressed the committee on their proposed Youth Entertainment Center in Dover. They explained that it will be an Under 21 Club, which is very similar to a normal night club but that no alcoholic beverages are served. They elaborated upon the need for positive entertainment for our youth. They have similar clubs in other towns that have proven very successful. The Club is planned to be located in the Blue Hen Mall. Not only will the facility be used as a night club, but it will be available for rental for proms, wedding receptions, etc. In order to address citizen concerns for surveillance for drugs, alcoholic and violence, Mr. Brown explained that they plan to install metal detectors at the entrance to the club and will have several guards on duty. They plan to work closely with the City of Dover Police Department for any violations of the law.
Mr. Salters asked that Mr. Brown supply the City with references from officials of towns where they have similar clubs. Council President Christiansen suggested that they work with DECASSA and the Boys and Girls Club in Dover and that they make provisions for admittance of those that cannot afford to participate in programs of this nature. Mr. Hutchison urged Mr. Brown to work as closely as possible with the City Police Department.
Asked by Mr. Tudor if the noise generated by the club could be a problem, Mr. Brown assured Council that they will comply with the City's noise ordinances.
Meeting Adjourned at 9:05 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Lambert presiding. Members present were Councilmen Hutchison and Tudor and Mr. Carey.
PRESENTATION - DELMARVA POWER AND LIGHT
Mr. Ray Landon, Executive Vice President of Delmarva Power and Light Company, addressed the committee on their proposal to purchase the City's electric system. Mr. Landon explained that he would give a brief overview of their proposal but that they would be more than happy to provide detailed information if Council so chooses. Mr. Landon stated that DP&L offers to purchase the City's electric system for $103.5 million. (A detailed proposal from DP&L is on file with the City Clerk.) Mr. Landon explained that the sale would benefit the residents of Dover by:
- increasing the revenue stream - from $1.0 million to $5.8 million additional annually - to subsidize city services and keep taxes low
- Lower electric rates and increased services from DP&L
- No risk of running current or additional power plants in an era of increasingly tougher environmental standards
Mr. Landon offered the following key components and key benefits to Dover if the City sold their electric system to DP&L:
Key Components
- Purchase for $103.5 million
- Provide a bond at 7.25%, if desired by the City
- Hire a minimum of 108 employees
- Reduce electric rates by about $2.5 million
- Build Regional Operations Center within city limits
- Invest $12 million in power plant
Key Benefits to Dover
- Increased total revenue stream of $6.1 million to $8.4 million annually
- Increased extra income from $1.0 to $5.8 million annually which also could be used to keep taxes low
- No risk of having to run a power plant
- No need to provide future energy sources
- Guaranteed employment of electric department employees
- Reduced electric rates by about $2.5 million
- Increased stability of rates for customers since DP&L fuel services are more diversified and can offer economies of scale in customer service
- Increased utility services for customers
- Increased potential for jobs through lower commercial and industrial rates
- Increased environmental protection from both DP&L's operations department and Serving & Conserving Delmarva Program
In reviewing the proposal, Mr. Landon stated that the City's net proceeds from the sale (after payment of bonded indebtedness) would be approximately $84 million. This amount of money could produce a revenue stream of $6.1 million per year from DP&L's guaranteed bond at 7.25%. Mr. Landon admitted that if the bond proposal were offered to DP&L they probably would not take the 7.25% bond since a good money manager could easily derive a greater return on the investment. They will, however, offer the guaranteed bond if the City would prefer it.
Mr. Landon explained that in FY93, the City's electric system earned approximately $700,000. In addition to that, however, the system carried slightly less than $2 million of other expenses for the City. The system actually produced, in terms of revenue to the City, a total of $2,700,000. DP&L feels that the City will produce approximately the same for FY94, or slightly less. This past year, the City turned over to the General Fund from the electric business, $3.1 million. Mr. Landon explained that this was possible by tapping reserves from previous years. Using the numbers projected by DP&L, had their offer been in place for FY93, Mr. Landon stated that the City would have been $3.4 million better off in terms of cash flow. The numbers become more dramatic based upon the return on investment used by the City.
Mr. Landon ended his presentation by reiterating that DP&L realizes that this is a big decision for Dover and assured Council that they are at the City's disposal to assist in any way possible.
Referring to questions on future power supply, Mr. Landon stated that their proposal on selling power at embedded costs is very important. He stated that they have offered the same embedded cost scenario to Baltimore Gas and Electric who have RFP's out for bids for 140 megawatts of power. The offer will be on a first come, first served, basis.
Mr. Hutchison moved to recommend that the proposal be referred to City staff for evaluation and recommendation. The motion was seconded by Mr. Carey and unanimously carried.
A five minute recess was taken.
VILLAGE OF WESTOVER - SANITARY SEWER AGREEMENT
During the planning process for the Village of Westover subdivision on Hazletteville Road, discussions were held with the developer regarding the sanitary sewer service to the subdivision. The City's "Wastewater System Master Plan" identified the method to serve the area by gravity sewer, but that project is not scheduled for completion until 1997. The overall plan for the drainage basin requires that some of the sewer through the Village of Westover serve future development north and west of the site. It must also be designed to flow by gravity to the Puncheon Run Interceptor, south of Scott Paper.
As has been done on previous developments, a cost-sharing agreement was proposed wherein the developer would install the system required by the City, but would pay for only the system required by the development for service. The City would pay for the oversized portion of the pipe or extra work required by installing the pipe deeper than required by the subdivision. Preliminary design plans for both schemes were prepared, and cost estimates prepared both by the developer and the City. An agreement was obtained on the cost difference between the two designs, and the figure used as the basis of the proposed agreement.
For this site, construction has been divided into six phases. The developer requested that he not be required to pay more at any one phase than he would have been required to pay without the agreement. Therefore, due to some facilities which will not be required as the result of this agreement, the developer will pay the City an additional fee at the beginning of Phases 4 and 6. The payments will be reimbursement for a connection to Mifflin Road and a pumping station and force main that will not be installed.
The funds for the City's portion of the agreement was included in the 1993 Water/Wastewater Revenue Bond Issue obtained in October 1993. Staff recommended approval of the proposed agreement.
Mr. Hutchison moved to recommend approval of the agreement (attachment #3) between the City of Dover and the Village of Westover., seconded by Mr. Carey and unanimously carried.
VANSANT COMBUSTION TURBINE PARTS
The VanSant Combustion Turbine requires a combustion inspection due to a combination of operating hours, starts, stops and unit trips. The inspection would be in accordance with General Electric's recommendations. To facilitate this inspection, a large number of parts are required for replacement of expendable parts and normal wear items. The combustion inspection for this unit is currently scheduled for April 1994. The quoted price for procurement of the necessary parts is $307,232 from General Electric, the original equipment manufacturer.
Mr. Tudor questioned the need for the inspection since the turbine was down for such a long period of time. He questioned the total number of operating hours. Mr. O'Connor stated that the turbine has been on line for a few years now. He will research the total number of operating hours as requested by Mr. Tudor but urged approval of the parts since the inspection is a necessary aspect of the turbine's life span.
Mr. Tudor moved to recommend approval of the purchase of necessary parts, totaling $307,232, from General Electric for the turbine inspection. He stipulated, however, that the City Manager provide Council with the total number of operating hours for the VanSant Combustion Turbine. The motion was seconded by Mr. Hutchison and unanimously carried.
MCKEE RUN UNIT #3 PARTIAL DISCHARGE TEST EQUIPMENT
Over the past few years, a practical means has been developed to perform on-line partial discharge testing of turbine generators. Partial discharge testing can detect most common stator winding deterioration problems including poor impregnation, delamination due to overheating or cyclic operation, degradation of the semiconductive and stress coatings, and loose wedges and slot discharge. By routinely monitoring the partial discharge activity, the symptoms of generator insulation deterioration can be identified and corrective actions planned, thereby avoiding generator failure.
McKee Run currently has no means of analyzing the #3 generator conditions without opening the unit and conducting an inspection. The incorporation of monitoring equipment for the generator will assist in planning generator work and help facilitate the use of condition monitoring in scheduling overhauls rather than strictly using calendar hours. This would avoid unnecessary overhauls and help detect deteriorating conditions before they become significant problems.
There is only one supplier of partial discharge monitoring equipment suitable for turbo-generator applications. This supplier is IRIS Power Engineering. Funds were budgeted in the 1993/94 fiscal year for the purchase of all the hardware, software, and sensors for an analyzer for the Unit #3 generator. Installation of the sensors internal to the generator will be performed during the 1994 turbine generator overhaul. The quoted price for all related hardware, software, sensors and desirable options is $77,900. Staff recommended the purchase of a turbo-generator partial discharge analyzer for McKee Run Unit #3 from IRIS for $77,900.
Mr. Hutchison moved to recommend approval of the purchase of a turbo-generator partial discharge analyzer for McKee Run Unit #3 from IRIS in the amount of $77,900. The motion was seconded by Mr. Tudor and unanimously carried.
ELECTRIC RATE ADJUSTMENT
The current electric rates were adopted in February 1987. There have been three revisions in the rates; July 1988 - across the board -$0.005, October 1992 - across the board +0.005 and August 1993 - across the board +$0.0091.
A detailed comparison of electric rates in our market area was completed by staff. Our rates were found to be competitive except in the Transmission, Primary and Residential classes. The following rate adjustments were recommended:
Class Energy Rate Change
Dover Air Force Base -$0.00190/KWH
Scott Paper -$0.00645/KWH
Primary -$0.00251/KWH
Residential -$0.00410/KWH
The fuel adjustment rate for 1994, based on the current fuel fund balance of $5,332,445.68 and a projected fuel cost of $15.73 per barrel, can be set at -$0.00255. This will result in a reduction of $0.00410/KWH for all rate classes.
Mr. Hutchison moved to recommend approval of the proposed rate adjustments and the setting of the fuel adjustment rate for 1994 at -$0.00255, stipulating that all changes are to be effective for all bills as of January 1, 1994. The motion was seconded by Mr. Tudor and unanimously carried.
Mr. Hutchison moved for adjournment, seconded by Mr. Carey and unanimously carried.
Meeting Adjourned at 10:30 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
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