The Legislative, Finance, and Administration Committee meeting was held on October 12, 2009 at 5:00 p.m. with Chairman McGlumphy presiding. Members present were Mr. Salters, Mr. Leary, Dr. Jones, and Mr. Shevock. Members of Council present were Mr. Hogan, Mr. McGiffin, Mr. Ruane, and Mrs. Williams (arrived at 5:39 p.m.). Mayor Carey was also present.
AGENDA ADDITIONS/DELETIONS
Mr. Leary moved for approval of the agenda, seconded by Mr. Salters and unanimously carried.
Review and Recommendation - Filling of Critical Positions
During their meeting of February 23, 2009, members recommended approval of the Hiring Freeze for Fiscal Year 2008-2009, but to allow the hiring of critical positions through the review and approval of the Legislative, Finance, and Administration Committee and City Council. It was suggested that there be a "standing" agenda item to consider the filling of critical positions and, if there are no positions to consider, the item could be removed.
Mr. McGlumphy noted that there were no critical positions to be considered; therefore, no further action was required.
Review/Cost Saving Ideas Submitted for Consideration (Items #31-48)
During their meeting of May 19, 2009, Council reviewed the budget for Fiscal Year 2009/2010 which included a budget shortfall in the amount of $986,781 (across all three funds). In light of the shortfall, Mr. Kenneth Clendaniel, along with the IUE, provided a list of suggestions to save money and increase revenue throughout the City of Dover. Mr. McGlumphy had noted that the suggestions would be considered by members 10 at a time. During their meeting of July 13, 2009, members began their review of Items #1-10 on the list of revenue/cost saving ideas developed by employees. Items #11-#20 were reviewed during their meeting of August 10, 2009, and Items #21-30 during the meeting of September 14, 2009.
Mr. Anthony DePrima, City Manager, reviewed Items #31-48, as follows:
#31 - For the future, have one City polling place. Since only 10% of registered voters actually come out and vote, there's no reason to have multiple polling places.
Mr. DePrima noted that the City Clerk supports this recommendation as an opportunity to provide cost savings; however, he noted that City Council in the past has not supported this idea.
Mr. Ruane felt it was important to provide polling places that are distributed throughout the municipality to maximize accessibility and convenience for voters, stating that this idea is supported by the Voting Rights Act and also statistically results in greater turnout.
Mr. McGlumphy requested that statistics on this matter be provided for further consideration.
#32 - Blue letters - Don't send a blue letter to customers until their account is past due for 3 days. Only send one.
Mr. DePrima stated that the City is considering implementing new billing software that will eliminate the blue disconnection warnings currently being sent out, noting that the new bill would have a section that would notify the customer of past due status. Mr. DePrima stated that the cost of mailing the blue letters would be eliminated, but anticipated that the response from customers who depend on receipt of the blue letters would be negative.
#33 - Don't provide an energy audit to customers for free. I can't believe we're going to, for free, go into a customer's home to show them where and how to reduce our revenue.
Mr. DePrima explained that the City began doing energy audits last year as a free service to customers. He noted that Mr. Ron Lunt, Public Utilities Director, believes that this is an excellent service to customers that should be continued. The department has not received an "overwhelming" number of requests.
Mr. Ruane agreed with Mr. Lunt's evaluation, stating that the City provides electricity as an essential service to residents and that any time citizens can be helped to reduce the cost of energy, the City is providing an additional service. He also noted that the City has a stewardship obligation to reduce energy consumption, and this program is an asset in this regard.
In response to Mr. McGlumphy, Mr. DePrima indicated that close to sixty audits had been performed this year and that they are performed only during cold weather months.
#34 - If we make the computers at the library "For Library Functions Only", we can reduce the number of necessary computers, power consumption, maintenance, etc. It's turned into an internet café. Very little "library" stuff is done on them.
Mr. DePrima explained that these computers are used for many library functions. He acknowledged that many users do utilize the computers for free internet access; however, he stated that this is an accepted function of libraries in the current day and age, and he noted that, legally, the City cannot censor sites that are accessed.
Mr. Ruane stated that the library provides internet access as an essential service for citizens in the City and County who do not have home access, noting that the State Department of Labor and State Office of Economic Development have recognized that the Dover Public Library has become an important resource for job seekers.
#35 - Take our pickup truck and the Crown Vic that the tax office obviously doesn't need and give us a more efficient HHR. Two for one?
Mr. DePrima stated that the suggestion to replace older vehicles with newer, more energy efficient vehicles was not implemented because no additional vehicles were purchased this year. He stated that he believed that the pickup truck mentioned has been eliminated from the IT Department and replaced by the Crown Victoria, which was not being used by the Tax Office. He noted that, traditionally, old police cars are given to departments who have a need for transportation but do not place many miles on vehicles.
#36 - Install motion sensor lighting in more places - restrooms, lounges, computer room, mail room, etc.
Mr. DePrima supported this idea, noting that motion detectors would be especially helpful in Council Chambers. He stated that Mr. Ed Baker, Central Services Director, suggested that generating a memo and/or placing signs with reminders to turn off lights would be a more cost effective approach.
#37 - Install low energy lighting fixtures city wide. This would be an initial expense, but it would save in the long run.
Mr. DePrima explained that low-energy lighting fixtures are used in most locations throughout the City. He noted that incandescent lights are still used in the chandeliers in Council Chambers and that he is testing the performance of low-energy bulbs in the chandeliers in his office. He stated that the only other incandescent lights used in the City are high-voltage recessed lights, like those in Council Chambers, and staff has been unsuccessful in finding fluorescent replacements. He further stated that the Electric Department is experimenting with energy-efficient LED streetlights and that four (4) of these have been placed on Walker Road near the railroad tracks.
#38 - When library's training laptops are due for replacement, don't replace with City money. $40,000 and they're seldom used. Make them find more money if they have to have them.
Mr. DePrima stated that these computers are used for computer training for library users and were financed through a grant. He noted the computers are used frequently and that another grant may be sought in the future to replace them.
Mr. Ruane noted that these laptops are being used by those seeking employment and that a new program is being created for job seekers that will create additional use of these computers.
City-Wide Ideas to Save Money
#1 - Christmas lights on Loockerman are lit from November until Feb/March . . . Should only be on from November just after Thanksgiving to Jan 1 (Huge electric expense).
Mr. DePrima noted that Christmas lights are shut down on the 12th day after Christmas. He stated that the additional decorative lights on Loockerman Street have been left on at the request of downtown merchants for security reasons and noted his support for this idea. Mr. DePrima added that the City has been converting to the use of more energy efficient LED lights.
#2 - If the City Manager implements the 8-hour per month furlough for bargaining units, ALL non-bargaining, as well as City Administration, should also have to suffer a decrease in hours each month without pay to equal the percentage that is lost by everyone else.
Mr. DePrima stated that this suggestion has been adopted.
#3 - Take home vehicles should be made available to employees from each Department only when they are on call. Take home vehicles have been issued to Department Heads who are NEVER on call, as well as issuing other City officials or administrators take home vehicles. Though there is no budget for new vehicles now, the take home vehicles that have already been issued still have expenses such as vehicle maintenance, and gas expenses, as well as car wash expenses. This can be eliminated by getting rid of them. By eliminating most of these take home vehicles, the City could sell or auction them to make money as well as saving all the other expenses that goes with keeping them
Referring to his memorandum to Councilman McGlumphy dated May 15, 2009 (provided during the Committee Meeting of September 14, 2009), which provided an analysis of this suggestion, Mr. DePrima stated that most take-home vehicles are assigned to the Police Department and that changing this policy would not result in significant cost savings.
#4 - All Departments should shut down all computers at night when not in use.
Mr. DePrima stated that he tries to encourage this practice. Mr. Hogan questioned whether the cost savings involved are significant with energy star computers currently in operation.
#5 - No more catering or serving food and refreshments at City Council meetings and upper management meetings/training events.
Mr. Deprima noted that refreshments have been eliminated for City Council, City-County and Planning Commission meetings.
#6 - City Council and committee/board members should pick up packets from City Hall. No more home deliveries.
Mr. DePrima stated that Mrs. Ann Marie Townshend, Director of Planning and Community Development, did not feel this was a significant expense as inspectors are typically on the road throughout the day as part of their job duties.
#7 - Re-evaluate all part time positions and lay off all non-essential part time and temporary employees.
Mr. DePrima stated that one temporary position had been eliminated. He noted that the only other current temporary employee works ten (10) hours per week at the Tax Office to keep deed transfers current. He stated that most part-time employees are assigned to the library or the Pitts Recreation Center for weekend and shift work and that their employment is cost-effective because there are no associated expenses for employee benefits. He stated that he would provide members a summary of part-time, temporary, and committee members for review.
#8 - All non-essential city services employees go to 10 hour days (City Hall/Reed Street, etc.) and close on Fridays. Many State and County offices are currently under that schedule to save power and utility expenses.
Referring to a memorandum from Mrs. Terry Tieman, Senior City Administrator, dated September 15, 2009, which provided an analysis of this suggestion. Mr. DePrima noted that it would be difficult to measure the cost savings that could potentially be generated by this suggestion. He stated the possibility of experimenting with converting electric crews to a four (4) day week to reduce the amount of time involved in setting up and breaking down equipment each day. He believed that completely closing the City one day per week for would cause a significant reduction in customer service.
Mr. Hogan noted the possibility that a staggered four (4) day employee work week with ten (10) hour days could result in greater service to the public as offices could remain open longer.
Mr. DePrima acknowledged that flextime has been implemented by some State agencies and can bring improved service; however, there would be no utility savings realized.
#9 - Eliminate Medicare Part B for city management.
During the meeting of July 13, 2009, the Committee tabled consideration of the elimination of the Medicare Part B pending receipt of a report from a health care consultant. Mr. DePrima stated this suggestion will be discussed further when this item is removed from the table.
#10 - Do away with the City employee Appreciation gift each year.
Mr. DePrima noted that this suggestion would save the City $8,500 per year and that Mrs. Kim Hawkins, Human Resources Director, agrees with this proposal. However, he believed that the gift is a good way to show appreciation to employees and he feels that it is worth the money that the City invests.
Mr. Clendaniel noted that the cost-saving ideas were submitted by union members in an attempt to reduce the number of employee furlough days required during the fiscal year. He stated his belief that the ability of employees to retain their full salaries was of greater importance than providing some of the services and functions mentioned, such as numerous polling places throughout the City.
Mr. McGlumphy expressed appreciation for the ideas that were brought forward by Mr. Clendaniel and other employees throughout the City and stated that the Committee would welcome any additional cost-saving suggestions from staff or residents. He explained that Mr. DePrima and management will return to the Committee with a more detailed analysis on all suggestions for further discussion by the Committee.
Mr. DePrima estimated that it would take at least a month for staff to research and analyze findings before reporting back to the Committee.
Proposed Ordinance #2009-17
During the Legislative, Finance, and Administration Committee meeting of August 24, 2009, members reviewed Ordinance #2009-17 which proposes amendments to the City of Dover Code that will implement the recommendations of the International Association of Assessing Officers (IAAO) and the City of Dover Charter amendments that were adopted by City Council during their meeting of January 26, 2009. The Committee referred the amendments back to staff for review and revisions.
Ms. Russell reviewed the changes recommended in proposed Ordinance #2009-17 as follows:
Section 2-201 - Compensation and Expenses for Mayor, Council, Employees and Other Elected or Appointed Officials
Ms. Russell stated that this amendment would change the name of the Tax Appeals Committee to the Board of Assessment Appeals and the per diem compensation rate from $50 to $75.
Section 102-1 - Annual Valuation and Assessment
Ms. Russell noted that this amendment states the City Assessor will perform revaluations every three years and an outside company would do so every ninth year. She noted that the IAAO audit suggested that January 1st should be established as the value date and that if construction is partially complete as of January 1st, the property it would be put on the assessment rolls and will be billed in July according to the percentage that was complete in January. Mrs. Russell stated that properties with construction that is completed before July 1st will be billed and valued as completed projects.
Section 102-181 - Tax Appeals Committee
Ms. Russell explained that this amendment would change the name of the Tax Appeals Committee to Board of Assessment Appeals and add terms of service and qualifications for members.
Section 102-182 - Authority to Exempt Real Property from Taxation
Ms. Russell noted that this amendment would allow the Tax Assessor to grant exemptions for common tax-exempt entities pursuant to the Delaware Code. She explained that the Board would also be given the right to make recommendations for any exemptions not under these Codes and that these would be brought to Council for final approval.
Section 102-183 - Tax Exemptions for Senior Citizens
Ms. Russell stated that this amendment would change the name of the Tax Appeals Committee to the Board of Assessment Appeals.
Section 102-185 - Appeals
Ms. Russell explained that amendment would remove the numeric designation for the Assessment Appeal Policy to avoid having to complete an ordinance amendment in the future if this number were to change in the future. She noted that it also adds language that establishes decisions of the Board as final, with the exception of exemptions that will be brought before Council for approval.
Staff recommended adoption of the proposed ordinance.
Mr. Leary moved to recommend adoption of Ordinance #2009-17 (Attachment #1), as presented, seconded by Mr. Salters and unanimously carried.
Proposed Ordinances #2009-24 and #2009-25
Mrs. Traci McDowell, City Clerk, explained that during their regular meeting of July 24, 2006, City Council adopted ordinances amending Chapter 82 - Planning, Section 82-2 - City Planner, and Chapter 102 - Taxation, Article I - In general. These amendments placed management oversight of the Planning Department and Tax Assessor's Office under the City Manager. Mrs. McDowell stated that, at the request of the Chairman of the Legislative, Finance, and Administration Committee, she prepared draft ordinances reverting oversight of these departments back to City Council.
Mr. McGlumphy stated that when Council decided to place the City Planner and the Tax Assessor under the City Manager in 2006, it was with the understanding that this would be a temporary arrangement. He noted that some members of Council had requested that the former organizational structure be restored.
Mr. DePrima explained that, three years ago, he had advocated the change in structure due to some difficulties that developed in the Tax Office and the Planning Department. He noted that, at that time, he believed he should have direct oversight of these departments so that he could be more proactive in addressing these types of problems. He stated that he now feels that, whether or not he has direct responsibility for supervision of these individuals, his job is to be vigilant regarding all City operations and to keep Council apprised, and to be of assistance to all department heads whether appointed by the City Manager or Council. Mr. DePrima emphasized that the current Tax Assessor and City Planner are outstanding employees who work very well independently and with the City Manager.
Mr. DePrima stated that he believed that the City would be better served by going to a more traditional form of government where all department heads are appointed by and work under the direction of the City Manager, but stated that the City's hybrid structure is "ingrained in the culture".
Mr. DePrima stated that he had discussed with Mrs. Townshend some possible shifting of responsibilities. He mentioned three areas where he felt some changes might be made:
During the meeting of September 28, 2009, Mr. DePrima stated his intent to review the status of the budget with members and to include information regarding the City's ambulance funds as part of this analysis. Mr. DePrima briefed the members on a Review of the City of Dover Fiscal Year 2010 Budget, which he emphasized is not a budget amendment but was prepared in that format to better report changes in the budget. He stated that the report also includes an analysis of the impact of reducing the eleven (11) employee furlough days currently approved by Council to nine (9) days.
During the meeting of September 29, 2009, members requested that Kent County officials provide additional statistical information regarding ambulance services in the Dover area. Chief Colin Faulkner, Kent County Director of Public Safety, stated that staff had compiled this information.
Mr. Leary moved to accept the report as presented, seconded by Mr. Salters and unanimously carried.
William P. McGlumphy
Chairman
S:ClerksOfficeAgendas&MinutesCommittee-Minutes200910-12-2009 LF&A.wpd
Attachment #1 - Proposed Ordinance #2009-17
Attachment #2 - Proposed Ordinance #2009-24
Attachment #3 - Proposed Ordinance #2009-25
Attachment #4 - Email from Controller/Treasurer Regarding Preliminary June 2009 Ending Budget Balances - Updated