LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on July 27, 2009 at 6:00 p.m. with Chairman McGlumphy presiding. Members present were Mr. Leary, Mr. Salters, and Dr. Jones. Mr. Shevock was absent. Members of Council present were Mr. McGiffin, Mr. Ruane, Mrs. Williams, and Mr. Hogan (arrived at 6:27 p.m.). Mayor Carey was also present.
AGENDA ADDITIONS/DELETIONS
Mr. Leary requested that the agenda be amended by moving item #5, Proposed Resolution No. 2009-16 - Temporary Signs for South Governors Avenue Businesses During Road Construction, to item #1 on the agenda as a courtesy to the interested parties in attendance. Mr. DePrima requested that item #6, Rural Business Enterprise Grant - Small Business Development and Marketing Technical Assistance, be removed from the agenda due to the lack of required matching funds available for this grant.
Mr. Leary moved to accept the agenda as amended, seconded by Mr. Salters and unanimously carried.
Proposed Resolution No. 2009-16 - Temporary Signs for South Governors Avenue Businesses During Road Construction
Mrs. Townshend, Director of Planning and Community Development, reviewed Proposed Resolution No. 2009-16, stating that the purpose of the Resolution is to allow temporary signage for businesses along the South Governors Avenue corridor to help them identify their location and entrances during construction. Improvements to South Governors Avenue are currently underway and, while the long-term impact of the project on businesses will be positive, the construction is creating severe difficulties for a number of businesses in the corridor. The construction is moving north to the second phase, which encompasses land (and businesses) entirely within the City of Dover. Some businesses are in need of temporary signage during the construction to identify their location and/or their entrance. Since the Zoning Ordinance does not permit temporary signage for more than 30 days, in order to allow signage to help businesses during this challenging time within the corridor, the Planning Staff drafted a Resolution to allow permits to be issued for temporary signs that do not comply with the requirements of the Zoning Ordinance. This is similar to Resolution 2008-16, which was adopted on September 22, 2008, that allows the Planning Department to issue permits for legal non-conforming signs to be relocated once construction is complete.
This measure is necessary at this point in time, as many of the businesses impacted by the first phase of construction were not within the corporate limits of the City of Dover and were, therefore, not subject to City regulations regarding signage. Although not within the City of Dover, businesses located within Phase One of the project have been seriously impacted by the construction. Proactively addressing this issue before it becomes a crisis for businesses will help to mitigate some of the severity of the impact on businesses.
Mr. Ruane asked if commercial signs in residential areas would be permitted under the Resolution, stating his belief that this would not be environmentally sensitive. He felt that signs should only be placed on commercial properties at their normal place of business. Mrs. Townshend stated that the resolution would allow placement of signs on commercial and residential properties.
It was Mr. Salters’ belief that if construction is causing disruption to small businesses in the area, the City Planner should have the authority to allow sign placement on any property, residential or commercial, related to the construction. Concurring with Mr. Salters, Mr. Leary stated that he felt the Committee should have faith in the judgement of staff to strategically place signs.
In response to Mr. Ruane, Mrs. Townsend explained that some of the residents of South Bradford Street have expressed concerns regarding Dr. Halpern’s property at 885 South Governors Avenue. She stated that this property, which has frontage on South Bradford Street, has been given a temporary access to South Bradford Street due to the construction. An entrance sign was placed on South Bradford Street, which was addressed as a code enforcement issue; however, it was her belief that it would be logical to place a small, temporary sign to indicate the location of the entrance to the establishment during construction.
Mr. Ruane expressed his support for temporary signage; however, he reiterated his concerns regarding extending permission to place commercial signs in residential areas, stating that there are other commercial properties on Governors Avenue with frontage on South Bradford Street who may also want to place signs there.
Mr. John Paradee of Prickett, Jones and Elliot, speaking on behalf of a number of Governors Avenue businesses which are represented by his office, explained that business owners on Governors Avenue, south of the bridge being constructed, have been adversely impacted by the construction and have had “headaches” in trying to direct customers to their businesses. He anticipates that these problems will continue as the project moves north and requested flexibility and consideration from the City to try to avoid these hardships as the project continues. He emphasized that the signage would be temporary and would be removed when construction is complete. Mr. Paradee expressed his confidence that Mrs. Townshend could exercise discretion and judgement to ensure that the measure would provide relief only to those businesses that genuinely need it.
In response to Mr. McGlumphy, Mr. Paradee stated that a meeting with residents regarding Dr. Halpern’s property was scheduled for later in the week and that he would encourage other business owners to build rapport with residents. He stated that he is optimistic that Dover citizens and businesses can work together and build relationships through this project.
Ms. Judy Diogo, President of the Central Delaware Chamber of Commerce, stated that the Chamber began working with merchants at the south end of Governors Avenue when the bridge project began. She indicated that the bridge construction has been “almost catastrophic” for these businesses, as there were no mechanisms in place to assist them during construction. She requested that the Committee pass the Resolution to assist business owners affected by the next phase of construction. Ms. Diogo agreed with Mr. Paradee that Mrs. Townshend would be respectful of the residents and businesses in the area. She also emphasized that the signs would be temporary and would be removed after the project was finished. In response to Mr. McGlumphy, Ms. Diogo stated that Chamber representatives would be happy to meet with residents to discuss any problems that arise related to signs.
Mr. Bill Holden, owner of Holden Dodge-Chrysler-Jeep at 640 South Governors Avenue, stated that he is a long-time commercial property owner and a former resident of the South Governors Avenue area and is sympathetic to the concerns of both business owners and residents. He stated that, as a business owner, he would not advocate access for his customers through residential streets; however, he agreed that the consequences of construction have been “near catastrophic or catastrophic” for businesses in the vicinity of the bridge and expressed his trepidation about the next phase of construction. He encouraged the Committee to allow the City Planner to make exceptions to the signage policy to give businesses some relief on a temporary basis and indicated his willingness to participate in group meetings that might be helpful.
Mr. Salters moved to recommend the adoption of Resolution 2009-16 (Attachment #1),which would allow the City Planner to grant temporary, non-conforming signage for businesses on South Governors Avenue during road construction, seconded by Dr. Jones 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. Carter, Director of Parks and Recreation, reviewed a request to fill a part-time Service Center Clerk position at the John W. Pitts Center. He stated that the vacancy is an evening/weekend position required to operate programs, provide proper coverage of the building, and ensure that the facility and all users are safe.
Mr. DePrima, City Manager, stated that he rarely forwards requests to fill positions; however, he felt that this request should be considered because the incumbent assists in allowing the Pitts Center to operate during evening and weekend hours when much of the Center’s revenue is generated.
In response to Mr. Salters, Mr. Carter confirmed that this is a vacancy that would be filled and not a newly created position. Mr. Salters stated that he felt that the position should be filled, in view of the fact that money would be lost due to the vacancy.
Responding to Dr. Jones, Mr. Carter stated that the prospective employee would work the same number of hours as the previous employee, with the exception of a four (4) hour reduction due to the current City employee furlough policy.
Mr. McGlumphy stated that he believed that the position was justified, as it would generate revenue for the City. He cautioned members that, until the economic situation improves, decisions of this nature should be made very carefully.
Mr. Salters moved to recommend that staff be granted permission to recruit/fill the position of part-time Service Center Clerk, seconded by Mr. Leary and unanimously carried.
Phase II of the MAG Study
During their meeting of June 22, 2009, staff provided a handout containing an Organization of Recommendations related to Phase II of the MAG Study with proposed changes grouped according to subject area. Mr. McGlumphy reminded members that there would be no action taken on the matter at this time and that the study will continue to be returned to the table until all six (6) exhibits related to the report can be reviewed.
Mr. Leary moved to remove the matter from the table, seconded by Dr. Jones and unanimously carried.
A continuation of the review of the MAG study recommendations was presented by Mrs. Hawkins, Director of Human Resources, as follows:
Evaluation Design Changes
MAG Recommendations # 9 and #15 - Mrs. Hawkins indicated that, in discussing performance evaluations with staff, MAG learned that there is a consensus that the five (5) core competencies (six (6) for supervisors) contain redundancies. MAG recommended that a committee be formed to discuss whether core competencies can be reduced to make them more understandable and to reduce redundancy. She stated that, currently, seven (7) to eleven (11) bullet points which define the competency are listed under each core competency. MAG feels this is cumbersome and that competencies should be broken down into subcategories which are clarified by a maximum of two (2) to three (3) bullet points.
Mrs. Hawkins explained that MAG Recommendations #9 and #15 are linked; one contains recommendations for employees who do not report directly to Council and one is for employees who are under Council’s direct supervision. MAG recommended this change for both categories of employees. She stated that MAG provided an example of the proposed change on Page 5-11 of the report. Mrs. Hawkins stated that, as a new supervisor, she believes that this change would make the evaluation process quicker and less redundant.
MAG Recommendation #18 - Mrs. Hawkins stated that this recommendation would add adherence to the guidelines of the Pay for Performance (PFP) protocol to the core competencies for all supervisors.
Employee Recommendation #4 - Mrs. Hawkins explained that this suggestion was added at the request of employees who felt weighing goals should be explored so that goals deemed to be more challenging and time sensitive are weighted more heavily than simpler goals that can be postponed. She stated that, if implemented, this change will require modification in the PFP software module and this recommendation will be considered by an evaluation committee that will be created.
In response to Mr. Hogan, Mrs. Hawkins stated that Council would be welcome to serve on the evaluation committee, in addition to City staff.
Responding to Mr. McGlumphy, Mrs. Hawkins indicated that MAG acknowledges that the evaluation process has become cumbersome and recommends these items be adopted to help streamline the process.
Mr. Leary moved to table further consideration of the MAG and employee recommendations until the next meeting, seconded by Dr. Jones and unanimously carried.
Closing of Civilian Pension Plan
Mrs. Mitchell, Controller/Treasurer, reviewed a presentation entitled “Closing of the Civilian Pension Plan” (Attachment #2). She stated that, due to the plan’s current funding status and the current economic situation, her recommendations are to: 1) close the existing defined pension plan to new hires and possibly to those employees who are currently enrolled in the 401(a) plan who are seeking to buy in to this plan retroactive to their date of hire; 2) establish a new defined benefit pension plan; and 3) keep a 401(a)/457 plan option for portability, with the requirement that a witnessed and notarized affidavit be obtained from employees choosing this option.
Responding to Mr. Salters, Mrs. Mitchell explained that if Council chose to close the current plan, current employees would not be affected. The existing plan would be closed to new hires and a new plan would be established. She indicated that allowing employees to retroactively enter the defined benefit plan would have a potential budget impact of slightly less than $808,054. Mrs. Mitchell stated that closing the plan to new hires is another option that Council could consider. She felt that opening a new defined benefit plan could be beneficial to the City and help those employees who do not have a defined benefit plan. Mrs. Mitchell stated that if this option is chosen, the City could keep the existing 401(a) for portability or opt to close it.
In response to Mr. Salters, Mrs. Mitchell stated that, currently, losses must be amortized over five (5) years and, depending on how results match with actuary assumptions, pension liability could improve or become worse; however, she indicated that liability will not grow any more because of new plan entrants. In response to Mr. Salters’ inquiry regarding how the plan could recover the current shortfall, Mrs. Mitchell recommended amortizing the unfunded liability over a twenty (20) year period, banking on the hope that actual results will meet actuarial assumptions.
In response to Mr. Leary, Mrs. Mitchell stated that the majority of the unfunded liability is the result of investment performance. Mr. Leary stated his belief that the City would be taking on the same risk with a new plan.
Concurring with Mr. Leary, Mr. Ruane questioned the benefit of opening a new plan and inquired if the current trend was not to close pension plans. Mrs. Mitchell concurred; however, she stated that one of the positive benefits she perceived in opening a new plan was the potential to reduce the Other Post Employment Benefits (OPEB) liability, which is another large shortfall the City is facing.
Mr. Leary moved to accept the Closing of the Pension Plan Report, seconded by Mr. Salters, and unanimously carried.
Revenue/Cost Saving Ideas Submitted for Consideration (Items #11 - 20)
Mr. McGlumphy requested that, due to time constraints, agenda item # 4, Revenue/Cost Saving Ideas Submitted for Consideration (Items #11-20), be deferred until a subsequent meeting.
In response to Mr. Ruane, Mr. McGlumphy stated that examining the losses the City has incurred as a result of recent cutbacks in State funding will be added to a future Committee agenda.
Mr. Leary moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 7:00 P.M.
Respectfully submitted,
William P. McGlumphy
Chairman
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Attachment
Attachment #1 - Resolution 2009-16 - Authorizing Non-Conforming Signage for Businesses on South Governors Avenue
Attachment #2 - Presentation on Closing of Civilian Pension Plan