REGULAR COUNCIL MEETING
The Regular Council Meeting was held on April 12, 1993 at 7:30 p.m. with Council President Christiansen presiding. Members present were Councilmen Lambert, Tudor, Leary, Pitts, Salters, Levitt, Daisey and Hare.
Council staff members present were Chief Smith, Mr. Lucas, Mr. Worley, Mr. DePrima, Fire Chief Baker, Mrs. Boaman and Ms. Marty Pyott.
The invocation was given by Pastor Kiger, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Mr. Hare requested the addition of a proposed resolution for Colonel Lowe. Mr. Leary moved for approval of the agenda as amended, seconded by Mr. Hare and unanimously carried.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF MARCH 22, 1993
The Minutes of the Regular Council Meeting of March 22, 1993 were unanimously approved by motion of Mr. Salters, seconded by Mr. Levitt and bore the written approval of Mayor Knopf.
PRESENTATION - DISTINGUISHED BUDGET AWARD - GOVERNMENT FINANCE OFFICERS ASSOCIATION
The Distinguished Budget Award, from Government Finance Officers Association, was awarded to the City of Dover. This award signifies the excellent manner in which the City prepares its budget. City Manager Worley, presented the award to Mrs. Terry Tieman and her staff for their excellent work in preparing the budget document. Mrs. Tieman expressed her appreciation for the award and for the hard work of her staff in the budget project.
PROCLAMATION - DAYS OF REMEMBRANCE OF THE VICTIMS OF THE HOLOCAUST
The following Proclamation was read into the record by the City Clerk:
WHEREAS, six million Jews were systematically murdered by Nazi Germany and their collaborators from 1933 to 1945; hundreds of thousands of Gypsies and millions of Slavs, handicapped, religious and political dissidents and others deemed by the Nazis as "unworthy of life" were swept into this abyss; and
WHEREAS, April 19, 1993, marks the fiftieth anniversary of the uprising by valiant young Jewish men and women in the Warsaw Ghetto against overwhelming Nazi military might; followed later in 1943 by revolts in the killing centers of Treblinka and Sobibor; and
WHEREAS, all our citizens should remember the atrocities committed by Nazi Germany and their collaborators and recognize that each of us must remain eternally vigilant against all tyranny; and
WHEREAS, Sunday, April 18, 1993, has been designated pursuant to an Act of Congress as a Day of Remembrance of the Victims of the Holocaust, known internationally as Yom Hashoah; and
WHEREAS, it is appropriate for the citizens of Dover to join in this commemoration with the United States Holocaust Memorial Museum, dedicated this year as the nation's center for learning and remembrance of the Holocaust.
NOW, THEREFORE, I, AARON O. KNOPF, MAYOR OF THE CITY OF DOVER, DELAWARE, do hereby proclaim the week of Sunday, April 18 - Sunday, April 25, 1993 as
DAYS OF REMEMBRANCE OF THE VICTIMS OF THE HOLOCAUST
in memory of those victims and in the hope that we will strive always to overcome prejudice and inhumanity through education, vigilance and dedication to equal justice for all.
PROCLAMATION - GRANGE WEEK
The following Proclamation was read into the record by the City Clerk:
WHEREAS, another year has passed us by bringing with it a multitude of opportunities, responsibilities and problems that have tested the minds of those of us who live in this great country; and
WHEREAS, the Grange has worked effectively through its Subordinate, Pomona, State and National Organization to make our views and wishes known; and
WHEREAS, we look about us and see Mother, Father, Brother and Sister in our social gatherings and are proud that the principles and ideals under which the Grange operates makes this possible.
NOW, THEREFORE, I, AARON O. KNOPF, MAYOR OF THE CITY OF DOVER, DELAWARE, do hereby proclaim April 18 - 24, 1993 be set aside as GRANGE WEEK in the City of Dover for the purpose of planning activities, celebrations, special displays and open meetings to let non-members know the Grange's accomplishments and contributions.
Several members of the Grange were present to accept the Proclamation from Mayor Knopf.
PROCLAMATION - BARBERSHOP HARMONY WEEK
The following Proclamation was read into the record by the City Clerk:
WHEREAS, this Society is dedicated to the spread of harmony for the enjoyment of all people of the world through organizing and encouraging close=harmony singing groups; and
WHEREAS, this Society encourages harmony amongst all people of the world through the universal language of music; and
WHEREAS, this Society has actively preserved and presented a distinct style of vocal music that originated in North America; and
WHEREAS, this Society is dedicated to sustaining and preserving an American tradition, the barbershop quartet, and;
WHEREAS, this Society promotes musical education through music scholarships and other means, and supports charitable foundations; and
WHEREAS, Barbershoppers are engaged in laudable civic service and enrichment of our cultural life through the fostering of traditional values in entertainment and community endeavors.
NOW, THEREFORE, I, AARON O. KNOPF, MAYOR OF THE CITY OF DOVER, DELAWARE, do hereby proclaim the week of April 24 - 31, 1993 as BARBERSHOP HARMONY WEEK in the City of Dover.
RESOLUTION - RETIREMENT OF CAPTAIN ROBERT L. BATES
By motion of Mr. Lambert, seconded by Mr. Salters, Council unanimously adopted the following Resolution:
WHEREAS, Captain Robert L. Bates has been a dedicated Police Officer for the City of Dover since May 25, 1970; and
WHEREAS, Captain Bates quickly rose through the ranks of the Police Force, being promoted to Patrtolman First Class in 1974, Corporal in 1977, Sergeant in 1980, Lieutenant in 1984, and in 1989 was promoted to Captain; and
WHEREAS, Captain Bates is a graduate of the 140th Session of the FBI National Academy and throughout his career he continued to increase his education and knowledge in the field of law enforcement; and
WHEREAS, after 23 years of dedicated service, Captain Bates has chosen to retire from employment with the City of Dover Police Department.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council extend their deepest gratitude to Captain Robert L. Bates for his contribution to our community, highly commending him for the manner in which he carried out his responsibilities and duties for the City of Dover Police Department, and wish him a healthy and happy retirement.
ADOPTED: April 12, 1993
RESOLUTION - RETIREMENT OF LIEUTENANT GARY A. ROE
By motion of Mr. Salters, seconded by Mr. Lambert, Council unanimously adopted the following Resolution:
WHEREAS, Lt. Gary A. Roe began his career as a Cadet with City of Dover Police Department on February 28, 1967, becoming a Patrolman on February 19, 1968; and
WHEREAS, during his employment with the City Police Department, Lt. Roe diligently worked to the rank of Patrolman First Class in February 1972, Corporal in February 1974, Sergeant in January 1982, and Lieutenant in July 1988; and
WHEREAS, the City of Dover Police Department experienced tremendous growth during the course of Lt. Roe's career and he has worked in concert with other City departments and with the community to ensure that the services of the City's Police Department continued to meet the needs of our community; and
WHEREAS, after 26 years of dedicated and loyal service, Lt. Gary A. Roe has chosen to retire.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the City of Dover wish Gary A. Roe a happy and healthy retirement and extend their sincere appreciation for the contribution he has made to our community and for the dedicated service he has provided to the City of Dover Police Department.
ADOPTED: April 12, 1993
The Resolution, Dover Cup and City Plaque were presented to Lt. Roe. Lt. Roe expressed his appreciation for the opportunity to be a police officer for the City of Dover and to his family for their support in his career.
RESOLUTION - SPRING CLEAN UP
By motion of Mr. Salters, seconded by Mr. Daisey, Council unanimously adopted the following Resolution:
WHEREAS, the Mayor and Council desire to place special emphasis on a clean and beautiful City; and
WHEREAS, traditionally in May there is a period set aside to honor the past and heritage of the City; and
WHEREAS, the annual Old Dover Days will be celebrated on May 1, 1993.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. The period of April 18 - 23, 1993 be designated Spring Clean Up Week for the City.
2. All citizens are encouraged to clean up and beautify their premises. All Spring Clean Up items should be put out the same day as your regular household garbage for pick up.
ADOPTED: April 12, 1993
RESOLUTION - COLONEL TERRY LOWE
By motion of Mr. Lambert, seconded by Mr. Daisey, Council unanimously adopted the following Resolution:
WHEREAS, Colonel Terry R. Lowe arrived at Dover Air Force Base in July 1992 and assumed duties as vice commander of the 436th Airlift Wing; and
WHEREAS, during his tenure, Colonel Lowe established an outstanding professional relationship with local community leaders enhancing an already strong partnership between the base and the City; and
WHEREAS, Colonel Lowe's professional skill and tireless efforts led the 436th Airlift Wing to a superb flying safety record, which was recognized by the Air Mobility Command Headquarters' Flying Safety Award; and
WHEREAS, Colonel Lowe developed a wing self-help work force, a group of volunteers, to work and improve the entire Dover Air Force Base community, enhancing the appearance of the base for all visitors to enjoy; and
WHEREAS, after a year of dedicated service to the base and the City of Dover, Colonel Lowe now departs for another assignment.
NOW, THEREFORE, BE IT RESOLVED, that the Mayor and Council of the City of Dover express their sincere appreciation to Colonel Terry R. Lowe for his outstanding contributions to the citizens of Dover and wish he and his family a happy and peaceful future in their next assignment.
ADOPTED: April 12, 1993
PUBLIC HEARING - REZONING OF PROPERTY LOCATED AT 801 W. DIVISION STREET - AID IN DOVER, INC.
A public hearing was duly advertised for this time and place to consider rezoning of property located at 801 W. Division Street, owned by Aid In Dover, Inc.
Planner's Review
Mr. Anthony DePrima, City Planner, explained that to the north of the site is an office, and bus garage and storage area zoned M (Manufacturing), to the east are single family homes zoned M (Manufacturing) and are non-conforming in this zone, to the south across Division Street is a car wash and mini mart zoned C-3 (Service Commercial), to the west is a single family home zoned M (Manufacturing), and further west and across Weston Drive is West Dover Elementary School zoned IO (Institutional and Office).
The Comprehensive Plan, as recently amended by the Route 8 Corridor Study, recommends Commercial Uses for this area.
This application was prompted by the desire of "Aid in Dover" Inc. to expand its 1400 S.F. Youth Shelter at this address. The center is located in a former single family home. Its plans are to build a two story addition to the rear of the existing structure that will permit a more efficient floor plan, add one bedroom for two additional youths, and expand its storage and laundry facilities. Additional parking is also planned. However, because this was a non-conforming use in the Manufacturing zone, an expansion is not permitted under the zoning ordinance.
Given that this is an existing use that provides a benefit to the community and has not had conflicts with surrounding uses, and that the proposed zone partially complies with what is called for in the Comprehensive Plan, and because this rezoning would place the existing use into a conforming zone, the Planning Commission recommends approval of this application.
Public Hearing
Council President Christiansen declared the hearing open.
Mrs. Beverly Williams, President and owner, and Mr. Terry Jackson, architect, were present and urged support of the rezoning request.
Council President Christiansen declared the hearing closed.
Mr. Salters stated that the Shelter has been very well run in the past and he commended Mrs. Williams for running a fine institution.
Mr. Hare moved for approval of the rezoning as recommended by the Planning Commission. The motion was seconded by Mr. Daisey and by a unanimous roll call vote, Council adopted the following ordinance:
AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 801 WEST DIVISION STREET
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 M to IO.
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 has been amended by changing the zoning designation from M to IO on that property located at 801 West Division Street, owned by Aid In Dover, Inc.
ADOPTED: April 12, 1993
DECISION ON REZONING OF PROPERTY ON N. CAROLINE PLACE
During the Council Meeting of March 8, 1993, a public hearing was held on the requested rezoning of property located on N. Caroline Place, owned by Robert J. Varipapa, Richard P. DuShuttle, Robert W. Kidd, III and William P. Ingram. At the request of the owners, the decision on the rezoning request was tabled by Council at the request of the owners to allow them to work out concerns with parkland.
Mr. Levitt moved to remove the matter from the table, seconded by Mr. Daisey and unanimously carried.
Mr. DePrima explained that the concerns of the owners have been resolved and they now request Council's approval of the request.
Mr. Daisey moved for approval of the rezoning request, seconded by Mr. Levitt and by a unanimous roll call vote, Council adopted the following ordinance:
AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED ON NORTH CAROLINE PLACE
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 RG-2 to RG-3.
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 has been amended by changing the zoning designation from RG-2 to RG-3 on that property located on North Caroline Place, owned by Robert J. Varipapa, Richard P. DuShuttle, Robert W. Kidd, III & William P. Ingram.
ADOPTED: April 12, 1993
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met on March 23, 1993 with Chairman Levitt presiding.
Comments - City Structure
As a follow-up to Council's discussion during their meeting of March 22, 1993 regarding the City's Structure, Mr. Lambert recommended that the Committee establish a timetable to complete the details of the items discussed at Council's Goals Workshop. It was his feeling that there was a consensus of those issues which Council wishes to pursue and that several public hearings should be held. Mr. Lambert felt that this issue should be resolve for those wishing to run for Mayor in 1994 and suggested a deadline date of November 30, 1993.
The committee recommended that a Council Workshop and public hearings be scheduled to discuss the City's Structure and that this matter be resolved in a timely manner.
With many very important matters before Council at this time, including review of the budget and proposed shortfall, Mr. Hare felt that discussion on the City's Structure be delayed until the more pressing issues have been resolved. Mr. Levitt stated that the intent of the motion was only to set a proposed target date for resolution of the matter.
Agreeing, Mr. Lambert stated that by setting a future date for resolution, it would allow Council to concentrate on higher priorities now and then to get back to the structure issue before the first of the year. This will ensure that anyone running for the office of Mayor in 1994 will have full knowledge of what the position entails.
Mr. Levitt moved for approval of the committee's recommendation that a Council Workshop and public hearings be scheduled to discuss the City's Structure and that this matter be resolved in a timely manner. The motion was seconded by Mr. Lambert and unanimously carried.
Robbins Hose Company - Transfer of Land
Council has approved the concept of a Robbins Hose Company Fire Station #2, to be located in West Dover, on property located at the corner of Walker and Kenton Roads, owned by the City of Dover. This property consists of 3.1697 acres, which includes a water tank. Since the fire station is being built by the Robbins Hose Fire Company, they need to have a portion of the land in their name in order to borrow the necessary funds. A survey has been performed on the needed land, consisting of 1.0816 acres, by the professional surveying firm of Earl D. Smith. Members were provided with a description and a map depicting the area.
The committee recommended that 1.0816 acres of land, located at Walker and Kenton Roads, be transferred to the Robbins Hose Fire Company. The Fire Company will pay for all costs related to this proposed transfer of land.
Mr. Levitt moved for approval of the committee's recommendation, seconded by Mr. Lambert and carried by a unanimous roll call vote.
Dover Kenton Road - Transfer of Land - Maple Dale Country Club
Members considered a proposed Agreement of Sale that has been submitted by Mr. Lee Berry, representing the Maple Dale Country Club (MDCC), to purchase a two (2) acre parcel of city owned land, located near the entrance of the MDCC.
Mr. Chappy Lucas, City Assessor, reminded members that this property is encumbered by a deed restriction prohibiting residential use until June 2008. Currently, this property is a non-productive, tax exempt parcel that is maintained by the City. A 30' rear utility easement will be maintained by the City of Dover, which is included in the Sales Agreement. Noting that the surrounding property is owned by MDCC, Mr. Lucas explained that the property would only be useful to MDCC.
The committee recommended that staff be authorized to move forward with the Agreement of Sale with Maple Dale Country Club (as on file in the City Clerk's Office), for the sale of a two (2) acre parcel of city owned land, and that a public hearing be set for April 26, 1993.
Mr. Levitt moved for approval of the committee's recommendation, seconded by Mr. Daisey and carried by a unanimous roll call vote.
Kent County Public Library Reciprocal Borrowing Agreement
Kent County Levy Court has submitted a request that governing bodies of all public libraries in the County sign a Letter of Intent to participate in a reciprocal borrowing program, if the following conditions can be met: 1) agreement on the reimbursement to each library for non-resident borrowing; and 2) creation of a library tax district which will eliminate "double taxation" for areas, such as Dover, which are already supporting library services.
In accordance with the reciprocal borrowing program, Kent County Levy Court would compensate all of the public libraries in Kent County to extend borrowing privileges to all Kent County residents without payment of a fee. It was also noted that Kent County has appropriated $100,000 for the automation of public libraries within the County. It is expected that local libraries will be automated under this program by early 1994.
It was noted that this would commit the City's participation in the system only if adequate compensation is provided by Kent County Levy Court and only if Dover residents are protected from "double taxation" to support the program.
The committee recommended that the City sign the Letter of Intent and enter into negotiations when the conditions have been met, stipulating that the matter be brought back to the committee for final approval.
Mr. Levitt moved for approval of the committee's recommendation, seconded by Mr. Daisey and unanimously carried.
Proposal for Library Basement Renovation
During the Dover Public Library's renovation in 1986, a portion of the basement (approximately 2,000 square feet) was left unfinished. Funds for completing this area of the basement have been received from private sources, and a $28,000 library construction grant has been awarded by the State. This project has been included in the CIP for fiscal year 1993/94. However, with receipt of the State Grant and since no City funds will be required, staff recommended authorization to proceed with the project at this time, with a projected completion date of June 30, 1993.
The area will be used as a meeting room, a local history/genealogy room, for the viewing of microfilm and microfiche, and for storage. Since the usage of the library is rapidly increasing, he stated that this project will enable the library to serve the residents of Dover much more efficiently.
The City's Public Works Department will act as the general contractor and perform the carpentry work for this project, at an estimated cost of $42,359. Staff also provided members with a proposed budget for the project, in the amount of $69,483.
The committee recommended that staff be authorized to proceed with the library basement renovation, at an estimated cost of $42,359.
Mr. Levitt moved for approval of the committee's recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
Citizen Suggestion to Hire Unemployed Residents as Quasi-Employees with Wages Earned Credited Towards Utility or Tax Debts
During the committee meeting of January 28, 1992, members considered a suggestion of Mr. James Burcham that unemployed citizens be permitted to work as quasi-City employees with the wages earned being credited directly to utility bills and/or City taxes. On the direct recommendation of the City Solicitor and Finance Director, the suggestion was declined; however, staff was requested to further review the suggestion for a report back to the committee.
It was the City Solicitor's opinion that utilizing labor in exchange for utility credits or property taxes would establish an employer/employee relationship, thus, the potential for adverse worker compensation and liability claims. In addition, the City would be liable for an additional 7.65% of earnings in FICA taxes.
Mr. Bruce Andrews, Director of Human Resources, explained that the City of Dover is uninsured for unemployment and must reimburse all claims. Should a person be unemployed and receiving State support, their benefit could be reduced by the earnings or credit granted by the City, or disqualified from benefits due to their classification as unavailable for work through their "employment" with the City. Should a person be unemployed but not receiving benefits, the quasi-employment relationship would qualify or re-qualify the individual for unemployment benefits. Due to the cash method the City utilizes to fund unemployment compensation, the City would then be liable for all future payments to the individual made by the State.
Staff investigated the concept utilized by the courts when community services are assigned as a part of their sentencing process. The courts are careful to avoid establishing an employment relationship by scheduling a length of time and not placing a value on the labor which is to be provided. Since the City recruits many volunteers for their parks and library programs, there was concern that implementing the suggestion would cause the City to be in the position of "paying" someone to volunteer and be assigned to similar duties as a true volunteer. Staff felt that this could have a debilitating effect on the City's ability to recruit unpaid volunteers.
Noting that most bills could be paid by working for the City five to 15 hours, staff advised members that an intense management of the program would be necessary to coordinate the high turnover rate. Staff estimated that it would cost the City approximately $35,000 to manage such a program. Taking into consideration that water/sewer, taxes, and special assessments become liens on property and are all ultimately collected, and that the current collection rate on electric bills is 99.7%, staff recommended that the suggestion of utilizing quasi-employees be denied.
Given all the facts that staff has provided, Mr. Burcham still felt that such a program could be established without all the concerns. He requested that he be given the opportunity to meet with staff and participate in their deliberations.
The committee recommended that the City decline the suggestion of utilizing quasi-employees at this time.
Mr. Levitt moved for approval of the committee's recommendation, seconded by Mr. Lambert.
Mr. Tudor felt that the concept of the suggestion is very good and that if people are willing to work off their debts, the City should do everything possible to allow them to do so. He suggested that Council allow Mr. Burcham to work with staff for a possible solution to the proposed problems with the suggestion. Mr. Daisey and Mr. Hare agreed, feeling that the City should continue exploring avenues to implement Mr. Burcham's suggestion.
Mr. Tudor moved to table action by Council to allow further review, seconded by Mr. Daisey and unanimously carried.
FY 1993/94 CDBG Amendment
At the February 22, 1993 City Council Meeting, Council authorized staff to apply for $348,696 in Community Development Block Grant (CDBG) funds from the State of Delaware, Division of Housing and Community Development. Included in this amount was $175,000 for an expansion to the 801 Shelter.
The 801 Shelter has received notification that they will be receiving $175,000 for the shelter's expansion through another State program; therefore, it is no longer necessary for the $175,000 to be included in the City's application to the State. On March 2, 1993, Mr. Frank Shavlik, Executive Director of People's Place II, Inc. submitted a letter requesting $18,000 in CDBG funds for the renovation of their building located on West Division Street. This would allow them to provide transitional housing for clients of their various programs. Given the need for transitional housing units in Dover, the State of Delaware, Division of Housing and Community Development has requested that this request be included in the City's application for CDBG funds.
The committee recommended that the application to the State of Delaware, Division of Housing and Community Development for CDBG funds be amended, as follows:
Rehabilitate 10 owner/occupied residential dwellings $120,000
Demolish one dilapidated dwelling 7,200
Renovate People's Place II, Inc. 18,000
Administrative Expenses 46,496
Total $191,696
Mr. Levitt moved for approval of the committee's recommendation, seconded by Mr. Salters and unanimously carried.
Request to Withdraw Increase in Expense Account - Mayor Knopf
Mr. Levitt read into the record a memorandum from Mayor Knopf, as follows:
"Due to some problems which have surfaced regarding the proposed $750 expense account increase for FY 93, I am asking that my request for an increase for this fiscal year be withdrawn.
However, during the upcoming budget process I would like consideration given to the idea of increasing the expense account and placing this figure along with payment for meetings in one lump sum as opposed to having two separate accounts which is presently being done."
The committee recommended acceptance of Mayor Knopf's memorandum.
Mr. Levitt moved for approval of the committee's recommendation, seconded by Mr. Daisey and unanimously carried.
Mr. Levitt moved for acceptance of the Legislative and Finance Committee Report, seconded by Mr. Hare and unanimously carried.
UTILITY COMMITTEE REPORT
The Utility Committee met on March 23, 1993 with Chairman Daisey presiding.
1993 Street/Stormwater Program
In accordance with Section 50 of the City Charter, Council may adopt a Resolution to issue bonds, without a referendum vote, to finance public storm sewers, streets and appurtenances, provided that the bonds do not exceed one million dollars.
Over the last two years, three projects were proposed for General Obligation Bonds, totalling $1,883,000. In order to reduce the amount of the bond issue, a portion of the Tar Ditch Improvements, Material Storage Building, and capital projects were removed. In October 1991, bonds were issued to complete the 1991/92 street program and Phase I of the Tar Ditch Improvements for a total of $961,000.
The committee reviewed a list of proposed projects to be included in the 1993 Street/Stormwater Program. The list consists of those projects that were eliminated from the 1991 G.O. Bond Issue, totalling $922,000, as well as the Spruance Road project, in the amount of $18,000. Staff recommended approval of the 1993 Street/Stormwater Program totalling $940,000. Upon approval of the 1993 Street/Stormwater Program, staff will present the details of a bond issue for the committee's review.
Mr. Daisey suggested that the 1993 Street/Stormwater Program be delayed until the economy recovers.
The committee recommended approval of the 1993 Street/Stormwater Program totalling $940,000.
Although he does not support the motion, Mr. Daisey offered the committee's recommendation as a motion for approval. The motion was seconded by Mr. Levitt.
Mr. Daisey stated his opinion that this project could be delayed without significant impact on the City's budget. Also, given the federal government's position that municipalities' infrastructure are in need of assistance, Mr. Daisey felt that federal assistance may soon be available.
On a call for the question on the motion, the motion failed by a roll call vote of five (5) no, four (4) yes (Mr. Lambert, Mr. Leary, Mr. Pitts and Mr. Levitt).
Quarterly Fuel Adjustment Review
The City reviews its fuel adjustment projections at least quarterly and modifies it in December on a levelized basis for the next calendar year. The current fuel adjustment is set at $0.01065 per KWH. The current cost of low sulfur oil is $17.50 a barrel. The fuel adjustment was based on a fuel cost of $20.25 a barrel for January through March and $21.75 a barrel for April through December. The average fuel cost for January was $20.58 a barrel and $18.90 a barrel in February.
There are a number of uncertainties in the oil market which could result in large swings in the price of oil. The Presidents' economic plans, fuel oil supplies and summer weather conditions could all have a major impact on the price of fuel oil. Staff recommended that the fuel adjustment remain at $0.01065.
The committee recommended that the fuel adjustment remain at $0.01065.
Mr. Daisey moved for approval of the committee's recommendation, seconded by Mr. Levitt and unanimously carried.
Future Power Supply
It is estimated that the demand for electricity of the City's system will exceed the City's production reserve capacity in the year 1996, which will result in penalties from the Dover Grid. By the year 2000, the demand may exceed the City's total production capacity. Although these dates are projections, it is necessary for the City to address a new power source by the end of this decade. Mr. Worley reminded members that five years ago, the City recognized that the development of a power source could be extensive and developed a power source plan. The plan recommended the establishment of the VanSant combustion turbine and a 50 megawatt base capacity power plant, which became the City's proxy plant. The proxy plant is used to measure other power sources.
The City recently received inquiries from other power producers to meet the City's future power needs. As a public entity, the City has an obligation to consider these proposals and to insure our customers that the City's power is the most economical. To fulfill this obligation, it was staff's feeling that the City should advertise for proposals. Resource Management International (RMI) has submitted a proposal to prepare and manage the solicitation of bids at a cost of $38,500. Staff suggested that the City recover this cost by charging for the privilege of bidding. The solicitation of bids will allow the City the maximum flexibility and insures that the City has made every attempt to find the most economical source of power.
Staff requested approval of the proposal from Resource Management International, in the amount of $38,500, for the preparation and management of the solicitation of bids for power generation resources for the future electrical needs of the City.
Responding to Mr. Daisey's concerns, Mr. Henry Koner, Vice-President of RMI, informed the committee that the proposal is in accordance with the Long Range Resource Planning Study to insure that adequate capacity is available.
The committee recommended approval of the proposal from RMI, in the amount of $38,500.
Although he does not support the motion, Mr. Daisey moved for acceptance of the committee's recommendation, seconded by Mr. Levitt.
Mr. Tudor questioned staff's recommendation that the City recover the costs by charging for the privilege of bidding. He projected that only five to seven bids would be received which would be extremely expensive to the bidder. He also wondered how the City would be able to determine how much to charge the bidder without knowing in advance how many bids would be received.
Mr. Worley stated that there are two costs involved in the process. The first cost is the evaluation of the bids, which is estimated at approximately $10,000 per bid. Each bidder would be required to maintain an escrowed amount of money which would be held for evaluation of the bid. The second cost is for preparation of solicitation. It is proposed that this be included in the escrowed funds, based upon an estimate of a reasonable number of bidders. This would be rebated back to the bidders, based upon the actual number of bidders, upon completion of evaluation of bids if there was an over-collection on the solicitation costs.
Mr. Daisey referred to a Long Range Study prepared by RMI for the City in 1986. He stated that this Study recommended the installation of a 20 megawatt combustion turbine unit which would take care of the City's power needs through 1996. The City purchased a 35 megawatt combustion turbine, which was an additional 15 megawatts. The RMI Study also recommended that the City change the combustion turbine to a combined cycle unit which would provide for an additional 10 megawatts. This was purported to take care of the City's power needs through the year 2000.
Mr. Worley reminded Council that a large part of this expense will be paid for by the bidders. A major industry in Dover has informed us that within the next 12 to 18 months they will be adding an additional 10 megawatts to our system which was not considered in the Long Range Study performed a few years ago. In the Study, it was estimated that in 1996/97, the City would need additional base megawatts to an ultimate need of 50 megawatts by the year 2000. There is a two to three year lead time to get such power. By the time the bids are received, analyzed, and a decision is made, it would be mid-winter of next year. It would be up to three years later before the units were actually purchased and on-line. Mr. Worley stressed the importance of allowing enough lead time to have the power available when it is needed. He urged Council to begin the bidding process, reminding them that they do not have to move forward once the bids are received if they choose to wait.
Agreeing with Mr. Worley, Mr. Lambert stated that not properly planning for our future could end up costing the City much more in later years. He stated that this is a follow-up to the RMI Study performed several years ago and in order to stay ahead of the electric needs of our City he urged Council's approval of the committee's recommendation.
Mr. Tudor felt that decisions of this nature should be held in abeyance until a new Electric Director is on staff to offer more expertise in this decision.
Asked by Mr. Hare if the City had personnel qualified to prepare solicitation bids, Mr. Worley stated that City personnel is not qualified since this is a detailed process that the City rarely utilizes.
Mr. Tudor moved that action on this matter be tabled until a new Electric Director has been hired. The motion was seconded by Mr. Daisey and carried by a roll call vote of five (5) yes, four (4) no (Mr. Lambert, Mr. Pitts, Mr. Salters and Mr. Levitt).
Bid - Kings Highway Water Main/Drainage Improvements
In conjunction with the 1990-1995 CIP, bids were solicited to upgrade the existing water mains in both Kings Highway and Lakeview Drive, from Maple Parkway to U.S. Route 13. The upgrade will address the inadequate flow and pressures during emergencies in this area. Staff recommended awarding the contract to the lowest bidder, Teal Construction, Inc., in the amount of $136,980. The Engineer's estimate was $154,255.
This project also includes the installation of new curb and sidewalk along the south side of Kings Highway, from the entrance to Silver Lake Park to the existing curb on Division Street, to alleviate drainage problems on the street. This portion of the project will be funded by State Suburban Street Aid funds.
The committee recommended that staff be authorized to issue a purchase order to Teal Construction, Inc., in the amount of $136,980, to upgrade the existing water mains in Kings Highway and Lakeview Drive.
Mr. Daisey moved for approval of the committee's recommendation, seconded by Mr. Lambert and carried by a unanimous roll call vote.
Bid - Lebanon Substation Transformer Replacement
In July 1992, a newly installed 10MVA transformer was faulted by lightning. A 5MVA transformer was temporarily installed to maintain the system load. Upon receiving Council's authorization, staff issued a purchase order to Jimelco Inc., in the amount of $81,000, for the purchase of a re-built 10/12/14 MVA transformer. Jimelco, Inc. has recently filed bankruptcy and a warranted re-built transformer cannot be obtained from Jimelco, Inc.; therefore, it was necessary to solicit bids for a new transformer. The following bids were received:
Vendor