COUNCIL COMMITTEES
The Council Committees Meeting was held on March 23, 1993, at 7:00 p.m., with Council President Christiansen presiding. Members of Council present were Mr. Daisey, Mr. Levitt, Mr. Salters, Mr. Pitts, Mr. Lambert, and Mr. Tudor. Mr. Leary and Mr. Hare were absent.
AGENDA ADDITIONS/DELETIONS
Mr. Levitt requested the addition of item #2A, Proposed Land Transaction - Dover Kenton Road, to the Legislative and Finance Committee agenda. Mr. Levitt also requested the addition of item #7, Request of Mayor Knopf to Withdraw Increase in Expense Account, to the Legislative and Finance Committee agenda. Council President Christiansen requested the addition of item #2B, Suggestion Concerning the City Hall Parking Lot, to the Legislative and Finance Committee agenda. Mr. Lambert requested the addition of item #1A, Comments on the City Structure, to the Legislative and Finance Committee agenda.
Mr. Levitt moved to accept the agenda as amended, seconded by Mr. Salters and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Levitt presiding. Councilman Salters was present. In the absence of Councilman Leary and Mr. Hindman, Council President Christiansen and Councilman Pitts were deputized to serve as members.
COMMENTS - CITY STRUCTURE (COUNCILMAN LAMBERT)
As a follow-up to Council's discussion during their meeting of March 22, 1993 regarding the City 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 concensus of those issues that 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.
Concurring with Mr. Lambert, Council President Christiansen moved to recommend 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. Salters and unanimously carried.
WEST DOVER FIRE STATION - TRANSFER OF LAND
Mr. Mike Karia, Finance Director, introduced Mr. Donald Hayes, President of the Robbins Hose Fire Company and addressed members regarding the transfer of land for the West Dover Fire Station. Mr. Karia reminded members that Council has approved the concept of a West Dover Fire Station 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.
Staff 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. Salters moved to recommend approval of staff's recommendation, seconded by Mr. Pitts and carried with Council President Christiansen abstaining.
Council President Christiansen requested that the new fire station no longer be referred to as the "West Dover Fire Station". Since this will be the second fire station to serve the City of Dover, he requested that the new fire station be referred to as Robbins Hose Company Fire Station #2.
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, representative of 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 usefull to MDCC.
Mr. Pitts moved to recommend that staff be authorized to move forward with the Agreement of Sale with Maple Dale Country Club (as of 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. The motion was seconded by Mr. Salters and unanimously carried. (It is recommended that the public hearing be set for April 26, 1993).
SUGGESTION - SALE OF CITY HALL PARKING LOT
During their Regular Meeting of March 8, 1993, Council requested that staff devise a procedural policy on the sale of City owned land. Responding to Council President Christiansen, Mr. Lucas advised members that he has received information from City Solicitor Rodriguez and is in the process of obtaining policies used by other cities and towns. Once all the necessary information is compiled, a recommendation will be submitted for the committee's review.
Responding to Council President Christiansen, Mr. Salters felt that since the sale of the City Hall Parking Lot was not on the agenda, there should be no further discussion on the issue.
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.
Mr. Robert Wetherall, Library Director, introduced Ms. Gwen Elliott, President of the Library Advisory Committee and Ms. Martha Hadaway, County Librarian. They explained that 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.
Staff recommended that the City sign the Letter of Intent and enter into negotiations when the conditions have been met. 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.
Several members relayed concern with the proposal. Mr. Wetherall assured members that the Letter of Intent has been reviewed by staff and the City Solicitor.
Mr. Pitts moved to recommend acceptance of staff's recommendation, stipulating that this matter be brought back to the committee for final approval. The motion was seconded by Council President Christiansen 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.
Mr. Wetherall explained that 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.
Mr. Worley explained that 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.
Mr. Salters moved to recommend that staff be authorized to proceed with the library basement renovation, at an estimated cost of $42,359. The motion was seconded by Mr. Pitts and unanimously carried.
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, Mr. Andrews stated that 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.
Mr. Andrews advised members that staff investigated the concept utilized by the courts when community services are assigned as a part of their sentencing process. He stated that 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.
Several members felt that the City could utilize such a program. Responding, Mr. Salters stated that he too likes the concept, however, it was his feeling that it would be impractical. He explained that the City cannot afford the adminstrative apparatus to adminster such a program. Mr. Salters also felt that it would be difficult to determine those citizens that are truly unable to pay their bills.
Mr. Pitts moved to recommend that the City decline the suggestion of utilizing quasi-employees, seconded by Mr. Salters and carried with Council President Christiansen opposed.
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.
Mr. Don Knox advised members that 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.
Staff 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. Salters moved to recommend acceptance of staff's recommendation, seconded by Council President Christiansen and unanimously carried.
1993/98 CIP
Mr. Worley distributed copies of the 1993/98 CIP and explained that each section will be referred to the appropriate committees for their review and recommendation during future meetings.
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."
Mr. Pitts moved to recommend acceptance of Mayor Knopf's memorandum, seconded by Council President Christiansen and unanimously carried.
Meeting Adjourned at 8:32 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Daisey presiding. Members present were Councilmen Pitts and Lambert and Mr. Carey.
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.
Staff presented members with a list of proposed projects to be included in the 1993 Street/Stormwater Program. Mr. Braun explained that 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. Lambert moved to recommend approval of staff's recommendation, seconded by Mr. Pitts.
Responding to Mr. Tudor, Mr. Scrafford reminded members that the 20-year improvement cycle was initiated city-wide in order to prevent severe deterioration of the streets and alleys. Although the City utilizes a 20-year cycle, Mr. Scrafford explained that the streets and alleys are not automatically repaved. He assured members that the streets and alleys have been inspected by staff and only those that are necessary have been included in the program.
Mr. Daisey suggested that the 1993 Street/Stormwater Program be delayed until the economy recovers.
The motion, to recommend approval of the 1993 Street/Stormwater Program totalling $940,000, was carried with Mr. Daisey opposed.
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.
Ms. Swain stated that there are a number of uncertainties in the oil market which could result in large swings in the price of oil. She indicated that 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.
Mr. Carey moved to recommend acceptance of staff's recommendation, seconded by Mr. Lambert and unanimously carried.
FUTURE POWER SUPPLY
In the year 1996, it is estimated that the demand for electricity of the City's system will exceed the City's production reserve capacity, 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.
Mr. Worley advised members that the City recently received inquiries from other power producers to meet the City's future power needs. As a public entity, he explained that 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. Mr. Worley stated that Resource Management International (RMI) has submitted a proposal to prepare and manage the solicitation of bids at a cost of $38,500. He 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 recommended 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, stated that the proposal is in accordance with the Long Range Resource Planning Study to insure that adequate capacity is available.
Mr. Lambert moved to recommend approval of the proposal from RMI, in the amount of $38,500, as recommended by staff. The motion was seconded by Mr. Carey and carried with Mr. Daisey opposed.
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.
Mr. Braun stated that 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. He advised members that this portion of the project will be funded by State Suburban Street Aid funds.
Mr. Pitts moved to recommend 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. The motion was seconded by Mr. Carey and unanimously carried.
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. Ms. Swain advised members that since Jimelco, Inc. has recently filed bankruptcy, 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 Transformer Size (KVA) Cost per KVA Lump Sum Cost
Hesco 10,000/12,000/14,000 $ 9.75 $ 97,500.00
Utility Lines 12,000/14,000/16,000 8.575 102,900.00
US Transformer 12,000/16,000/20,000 12.95 129,500.00
Ward Transformer --- --- No Bid
Sunbelt --- --- No Bid
Staff recommended awarding the bid to Utility Lines Co., in the amount of $102,900, for the purchase of a 12,000/14,000/16,000 transformer. Although based on the lump sum cost, Hesco was the lowest bidder, Ms. Swain explained that Utility Lines Co. will be providing a slightly larger transformer which will be beneficial and will provide the lowest cost per KVA.
Mr. Carey moved to recommend acceptance of staff's recommendation, seconded by Mr. Pitts and unanimously carried.
By the request of staff, there was a consensus from those members of Council present for staff to immediately proceed with the purchase of the transformer.
Mr. Pitts moved to adjournment, seconded by Mr. Carey and unanimously carried.
Meeting Adjourned at 9:30 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
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