REGULAR COUNCIL MEETING
The Regular Council Meeting was held on March 23, 2009 at 7:30 p.m. with Council President Hogan presiding. Council members present were Mr. Leary, Mrs. Russell, Mr. McGlumphy, Mr. Slavin, Mr. McGiffin, Mrs. Williams, Mr. Salters, and Mr. Ruane.
Council staff members present were Police Chief Horvath, Ms. Russell, Mrs. Mitchell, Mrs. Townshend, Fire Chief Carey, Mr. DePrima, City Solicitor Rodriguez, Mrs. McDowell, and Mayor Carey.
OPEN FORUM
The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Hogan declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action.
There was no one present wishing to speak during the Open Forum.
The invocation was given by Chaplain Dixon, followed by the Pledge of Allegiance, led by The Sankofa African Dance Company.
AGENDA ADDITIONS/DELETIONS
Mr. Leary requested that item #8 - Recommendation of Haggerty & Haggerty Ad-Hoc Review Committee, be deleted from the Agenda.
Mr. McGlumphy moved for approval of the agenda, as amended. The motion was seconded by Mr. Leary and failed by a roll call vote of six (6) no and three (3) yes (Mr. Leary, Mr. McGlumphy, and Mr. Ruane).
Mr. Slavin moved for approval of the agenda, as presented, seconded by Mrs. Williams and unanimously carried.
Mr. Slavin requested that item #6B - Implementation of MAG Report - Phase I, be removed from the Consent Agenda and that item #6D - Estimated Impact of Proposed Budget Reductions and Revisions, be added to the Consent Agenda.
Mrs. Williams moved for approval of the Consent Agenda, as amended, seconded by Mr. Salters and carried by a unanimous roll call vote.
ADOPTION OF MINUTES - COUNCIL RETREAT MEETING OF JANUARY 30, 2009
The Minutes of the Council Retreat of January 30, 2009 were unanimously approved by motion of Mrs. Williams, seconded by Mr. Salters and bore the written approval of Mayor Carey.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF MARCH 9, 2009
The Minutes of the Regular Council Meeting of March 9, 2009 were unanimously approved by motion of Mrs. Williams, seconded by Mr. Salters and bore the written approval of Mayor Carey.
PRESENTATION - CERTIFICATE OF APPRECIATION AND CONGRATULATIONS - SAMUEL C. KNOTTS, III
The following Certificate of Appreciation and Congratulations was read into the record by the City Clerk:
MAYOR AND COUNCIL
Be It Hereby Known To All That The Mayor and Council Commend
SAMUEL C. KNOTTS, III
for Dedicated Service to the City of Dover
April 1979 - July 1981
January 1984 - August 2009
27 Years of Service
The Mayor and Council Extend Sincere Appreciation and Congratulations
On behalf of the Mayor and Council, Mayor Carey presented the Certificate in appreciation for the years and service provided by Mr. Knotts.
PRESENTATION - GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) DISTINGUISHED BUDGET AWARD
The Government Finance Officers Association Distinguished Budget Presentation Award for Fiscal Year beginning July 2008 was awarded to the City of Dover. This award signifies the excellent manner in which the City prepares and presents its budget. Mayor Carey noted that the City of Dover is one (1) of only three (3) entities, including the City of Wilmington and New Castle County, in the State of Delaware that have received such an award. Mayor Carey presented the award to Mrs. Tieman, Senior City Administrator. Noting that this is the 20th time the City has received this award, she commended the budget team for their efforts and thanked the Mayor and Council, Administrative Assistants, and other staff involved in the process.
PRESENTATION - AWARDS BY DOWNTOWN DOVER PARTNERSHIP - ST. PATRICK'S DAY PARADE
Mr. Ed Perez, Downtown Coordinator, presented awards for the 16th Annual St. Patrick’s Day Parade, as follows:
Category Recipient
Pot O’ Gold - Anything with Wheels Award The Wheelmen (Delaware Division)
The Rainbow Award - Car Clubs Only First State Antique Tractor Club
The Blarney Award - Best Mascot The Newshound
The Green Machine Aware - Best Float McGlynn's Pub
The Aran Award - Best Animal Broke to Ride 4-H Club
The Harp Award - Best Musical Group Inner-City Cultural League
The Shamrock Award - Most Authentic Irish Theme Jim McGiffin's Pipe Band
Leprechaun Award - Best Brigade/Marching Unit First State Young Marines
Emerald Isle Award - Best Adult Marching Band Delaware Tech Terry Campus Hammerin' Hawks Drumline
McNamara Award - Best High School Marching Band Campus Community High School
Pied Piper Award - Best Middle School Marching Band Holy Cross Crusader Marching Band
Mary Fitzpatrick Award (Best Overall) Delmarva Irish Society
PROCLAMATION - EMPLOYEE APPRECIATION DAY
The City Clerk read the following Proclamation into the record:
WHEREAS, year after year City of Dover employees continue to work hard for our community and our citizens; and
WHEREAS, all employees of the City of Dover strive daily to promote Community Excellence Through Quality Service; and
WHEREAS, due to the teamwork and the commitment of our employees, the citizens of Dover are able to enjoy a community where the employees take pride in their job performance and the effects it has on the city; and
WHEREAS, the City of Dover values its employees, recognizing that every member of the work force - from meter reader to engineer, laborer to policeman, dispatcher to secretary - is an integral part of the day-to-day operations of the City of Dover; and its success is due largely to the pride and efforts of its employees.
NOW, THEREFORE, I, Carleton E. Carey, Sr., Mayor, of the City of Dover, Delaware do hereby proclaim Friday, April 17, 2009 EMPLOYEE APPRECIATION DAY in the City of Dover and recognize the dedication and hard work of all City of Dover employees, and request that all citizens take a moment to thank a City of Dover employee for their outstanding service to our community.
PROCLAMATION - FAIR HOUSING MONTH
The City Clerk read the following Proclamation into the record:
WHEREAS, fair housing issues are of concern to all citizens and discrimination continues against minorities in several areas of housing, including lending practices, areas of ownership and restrictive covenants dealing with the sale of homes; and
WHEREAS, the members of Dover's City Council have committed thousands of dollars in Community Block Grant Funds to support efforts to increase home ownership within the City of Dover; and
WHEREAS, many groups in Delaware remain committed to fair housing for all citizens, including the Delaware State Housing Authority, Delaware Housing Coalition, Housing Opportunities of Northern Delaware, and the Statewide Association of Tenants, and the City of Dover has partnered with other groups to facilitate and advance housing issues.
NOW, THEREFORE, I, Carleton E. Carey, Sr., Mayor of the City of Dover, Delaware do hereby proclaim the Month of April 2009 as Fair Housing Month in the City of Dover, Delaware.
PROCLAMATION - LIGHTS OUT AMERICA
The City Clerk read the following Proclamation into the record:
WHEREAS, our nation's use of energy continues to increase, resulting in detrimental effects on the world's climate; and
WHEREAS, it has been estimated that turning non-essential lights out in America for one hour could save as much as 15% of the energy consumed on an average Saturday night; and
WHEREAS, the energy savings will reduce carbon emissions into our air, preserve the natural resources used to produce this energy, set a positive precedent for the rest of the nation, and result in ongoing reduced costs for the taxpayers and businesses of the City of Dover; and
WHEREAS, participation in LIGHTS OUT AMERICA - EARTH HOUR will provide the residents of the City of Dover with insight into the impact of light pollution and allow them to witness first hand the benefits of regulating outdoor lighting.
NOW, THEREFORE, I, Carleton E. Carey, Sr., Mayor of the City of Dover, Delaware support the recognition of Lights Out America - Earth Hour on March 29, 2009, by recommending that the residents and businesses of the City of Dover participate by turning out non-essential lights from 8:30 p.m. to 9:30 p.m.
Mayor Carey presented the Proclamation to Mr. Ron Zink of the Sierra Club.
On behalf of the 1 billion people from 165 countries who have pledged to turn off their lights, Mr. Zink thanked the City of Dover for the recognition.
PROCLAMATION - MILITARY RETIREE APPRECIATION DAY
The City Clerk read the following Proclamation into the record:
WHEREAS, the Military Retiree is an integral part of the Dover community and it is especially appropriate at this time to give special recognition to those who have served our country; and
WHEREAS, these outstanding citizens have devoted a major portion of their lives to the preservation of our heritage and freedom and we gratefully acknowledge that we live in freedom today because of the many sacrifices that have been made by valiant servicemen and women; and
WHEREAS, these patriots of Dover and many other communities will gather at the Dover Air Force Base for the Annual Retiree Appreciation Day celebration.
NOW, THEREFORE, I, Carleton E. Carey, Sr., Mayor of the City of Dover, Delaware, do hereby proclaim Saturday, April 4, 2009 as MILITARY RETIREE APPRECIATION DAY in the City of Dover and urge all citizens to honor these brave and heroic members of our community.
PROCLAMATION - SCOTS-IRISH HERITAGE MONTH
The City Clerk read the following Proclamation into the record:
WHEREAS, from our great nations earliest beginnings, America has inspired the hopes and dreams of many from around the world, who join in wanting to experience and share the gifts of freedom and opportunity; and
WHEREAS, the majority of the Scots-Irish who came to America in the colonial period settled in Pennsylvania, Virginia, and the Carolinas. Nonetheless, there was significant Scots-Irish settlement in each of the thirteen American colonies, including Delaware; and
WHEREAS, traces of a more lasting legacy with the Scots-Irish may perhaps be found in the non-material culture-in the language and music of Appalachia, in their belief in the importance of the family farm, individualism, and public education-all features that one can detect in the typical American; and
WHEREAS, Scots-Irish month provides us the opportunity to recognize the contributions made by the Scots-Irish and the aiding they provided in the formation of our nation and in our country's rich heritage.
NOW, THEREFORE, I, Carleton E. Carey Sr., Mayor of the City of Dover, Delaware, do hereby proclaim the month of April 2009 as SCOTS-IRISH MONTH and urge all citizens to take an active role in celebrating the accomplishments of the Scots-Irish in our society today.
Mayor Carey presented the Proclamation to Mr. Pete Gregg, State Deputy Chieftain of the American Clan Gregor Society, and recognized the many Scots-Irish who are residents of the City and their contributions.
PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE REPORT - MARCH 9, 2009
The Parks, Recreation, and Community Enhancement Committee met on March 9, 2009 with Chairwoman Russell presiding.
Proposal to Leverage Neighborhood Stabilization Program Funding
During their meeting of February 9, 2009, members were provided information entitled “NMTC/Leveraging Proposal - Questions and Answers 2/1/09” as well as an example of a Letter of Intent with regards to the proposal to leverage Neighborhood Stabilization Program funding. After expressing concerns regarding further discussion on the issue and an expectation that this matter be treated like any other staff recommendation, which would include an action form that includes input from all principle staff members, the committee tabled the matter.
During the committee meeting of March 9, 2009, Mrs. Townshend, Director of Planning and Inspections, reminded members that the Delaware State Housing Authority (DSHA) has awarded the City of Dover $1.5 million for the Neighborhood Stabilization Program (NSP) to purchase foreclosed properties, renovate them and sell them to qualified home buyers. The City has partnered with Diamond State Community Land Trust (DSCLT), Dover Housing Authority, and the National Alliance of Mental Illness in Delaware in developing the application for NSP funding that was approved by DSHA. On February 2, 2009, the City Manager, City Controller, City Planner, DSHA, and the NSP Partners attended a meeting in which a full presentation was given on leveraging NSP funds through the New Market Tax Credits (NMTC) program. Mrs. Townshend explained that by investing NSP funds and an equal amount of leverage loan funds in an NMTC structure, every NSP $1.00 would turn into approximately $2.50. The City Manager, City Controller, City Planner, DSHA, and the City of Dover NSP Partners supported this proposal subject to two (2) conditions, as follows: 1) that the DSHA provide a letter indicating that they are supportive of the leveraging approach; and 2) that the nonbinding Letter of Intent be modified to clearly state that the City of Dover’s credit will not be leveraged or obligated in any way. She assured members that the non-binding Letter of Intent has been modified and approved by the City Solicitor, and provided members the letter of support from DSHA.
With reference to the information entitled “NMTC/Leveraging Proposal - Questions and Answers 2/1/09” that was previously provided to members, it was noted that Q&A #23 refers to the development of a full program pro-forma and requested that staff provide a status. Mr. Parks of Discover Bank explained that Discover Bank’s involvement with the leveraging proposal is strictly for technical assistance for Community Reinvestment Act (CRA) Service Credit, as well as to serve as a lender or investor in order for Discover Bank to meet their CRA obligations. Their main goal is to advise local representatives and to make them aware of programs such as these that are successful throughout the country and, in doing so, to let their federal regulator know that they are assisting the community. He stated that although a preliminary draft of the pro-forma has been completed, it has not been finalized nor made official.
Mrs. Townshend explained that a non-binding letter of intent typically precedes a pro-forma. Mr. Ruane noted that the pro-forma was to identify any issues and he felt that there were issues and unanswered questions regarding this matter, such as the relationship of this program to the HUD parent funding source. He stated that Q&A #7 refers to any problems with co-mingling NSP and NMTC funds and questioned HUD’s opinion. Mr. Parks confirmed that, although HUD has informally commented on the proposal, they have not officially approved the proposal.
After much explanation and discussion, Mr. Ruane concurred with Mr. Parks regarding his feeling that the Delaware State Housing Authority should serve as the entity to be involved with the program, which would still allow Dover and other jurisdictions to have their foreclosed homes sold. He felt that this concept would simplify the complexity of this issue.
Mrs. Townshend explained that, with the exception of the City’s down payment assistance program, the City will not be maintaining any second mortgages on the foreclosed houses. Concurring, Mr. Parks indicated that the Dover Housing Authority will be serving as the catalyst for this program. Mrs. Townshend stated that the City of Dover will serve as the grant administrator and will be a participant in the decision making process for the selection of homes, etc.
Mr. Ruane suggested that the Delaware State Housing Authority consider the proposal, with the provision that the City of Dover be provided their allocation and gain the benefit of it, which would allow for 20 houses instead of 10, but he felt that to get into the intricacy, complexity, and required paperwork is asking the City of Dover to be overly involved.
Due to the complexity of this issue, members suggested that when this matter is presented to City Council on March 23rd, that staff make a similar presentation. It was noted that the pro-forma should be finalized by the time this matter will be considered by Council.
The committee recommended approval of the Letter of Intent and the letter from the Delaware State Housing Authority.
The committee recommended that the City of Dover send a letter to the Delaware State Housing Authority requesting them to reconsider the role being played in this proposal and stating that the City of Dover feels it would be better for the Delaware State Housing Authority to distribute Neighborhood Stabilization Program Funds rather than the local jurisdictions, with the assurance that the City of Dover would continue to get their allocation and continue to benefit from the additional funds that would be brought to the program from this investment.
During the Council meeting, Ms. Amy Walls, Community Reinvestment Act Officer with Discover Bank, provided a PowerPoint presentation of the proposal (Exhibit #1).
Responding to Mr. Ruane, Ms. Walls stated that a summary of the pro-forma was presented to all of the jurisdictions and, as a result, more questions need to be addressed before the pro-forma is finalized. Ms. Walls noted that the only static fee is for the third-parties, which are for attorneys and accountants to set up the structure, representing transaction costs of $500,000. Morgan Stanley New Markets will receive a fee of $554,064 to compile the initial application, to acquire the New Markets tax credits, and for managing at their level. New Community Partners (NCP) will be managing the reporting aspect of the New Markets tax credit program, as well as some or all of the Neighborhood Stabilization program reporting for a fee of $554,064. Delaware State Housing Authority (DSHA) will receive $980,000 for administrative costs. Mrs. Townshend advised members that the end result is that the City of Dover will be able to increase the number of houses purchased from 10 to 13.
Responding to Mr. Leary, Ms. Walls stated that the leveraged loan would be fully collateralized by the neighborhood stabilization program funds and the only risk to principle would be if they invested in properties or activities that are outside of the NSP or New Markets Tax Credit programs. Once the equity comes into the structure, it can be used to pay the interest payment. If the activities are not progressing at a rate that allows the NSP funds to be drawn down quickly or the properties are not selling fast enough to recoup the initial funds, the City would be backed-up by the New Markets Tax Credit equity. The City can further insulate itself from having to pay interest expense that is not readily available by keeping the equity separate and waiting to use the equity in program expenses at a later date. Ms. Walls noted that, since the funds are fully collateralized, they will be seeking, and hope to receive, a fixed interest rate on the seven (7) year loan.
Ms. Walls advised members that they anticipate that it will take 90 days to find the leverage lender, the New Markets Tax Credit investor, and to put the structure together, addressing both legal and accounting needs.
Responding to Mrs. Williams, Ms. Walls stated that, if the sales do not occur in a timely fashion, the City’s exposure would be if the maintenance and construction expenses exceed what is received in the New Markets equity. Mrs. Townshend advised members that the City would use the funds for settlement assistance and any purchasing of properties would be through either the Diamond State Community Land Trust (DSCLT) or the Dover Housing Authority, who would hold the properties and bear any exposure related to them.
Referring to item #4 on the “Opportunities” page, Mr. Hogan noted that the realtor fees would be lower than the industry. Ms. Walls stated that if the DSCLT and partners found the homebuyer, the real estate agent would still receive their commission.
Ms. Walls advised members that leveraging the $1.5M would result in $2.1M in funding. The New Markets structure requires that the loan payoff period be seven (7) years.
Responding to Mr. Salters, Ms. Walls stated that less than half of the New Markets equity would be used to purchase properties. She noted that many of the vendor fees are higher than a local accountant or consultant; however, they were chosen based on their long track record of being successful in meeting the program requirements.
Mr. Ruane expressed concern that they had not received the pro-forma and that new sponsor fees in the amount of $554,064 to Morgan Stanley, which already has the tax credit allocation, were introduced through this evening’s presentation.
Mr. McGiffin moved for approval of the Non-binding Letter of Intent (Exhibit #2) and acknowledgment of the Letter from the Delaware State Housing Authority, as recommended by the committee. The motion was seconded by Mrs. Williams and carried by a roll call vote of six (6) yes and three (3) no (Mr. Leary, Mr. McGlumphy, and Mr. Ruane).
Mr. Ruane moved for approval of the committee’s recommendation that the City of Dover send a letter to the Delaware State Housing Authority (Exhibit #3) requesting them to reconsider the role being played in this proposal, that the City of Dover feels it would be better for the Delaware State Housing Authority to distribute neighborhood stabilization program funds rather than the local jurisdictions with the assurance that the City of Dover would continue to get their allocation and continue to benefit from the additional funds that would be brought to the program from this investment. The motion was seconded by Mr. McGiffin and carried by a unanimous roll call vote.
The American Recovery and Reinvestment Act of 2009 (Federal Stimulus Program): Community Development Block Grant (CDBG) and Neighborhood Stabilization Program
Members were provided information received from the United States Conference of Mayors which summarizes all aspects of the stimulus funding. Mrs. Townshend, Director of Planning and Inspections, advised members that the City has not yet received information in writing as to how this program will be administered. According to the HUD Website, it has been determined that the City will be receiving approximately $73,000 in additional funding for the current year’s allocation. She stated that staff has contacted the City’s HUD representative; however, staff has not received a response to date. After speaking with the Delaware State Housing Authority, Mrs. Townshend stated that the added allocation must be used for infrastructure, such as sewer, water, roads, etc.; however, she stated that this has not been confirmed. She assured members that staff has been discussing possible infrastructure projects.
In response to Mr. Ruane regarding the possibility of receiving other program funding, Mrs. Townshend stated that the stimulus money will be coming through the State of Delaware and that guidance has not been provided by the State as to how they would be distributing the funds to local governments. She advised members that some of the stimulus program funds will be allocated to existing programs for supplemental purposes.
Mr. Ruane suggested that the City go on record with the State indicating the City’s desire for consideration of the additional program funds.
The committee recommended that staff review the list of economic recovery dollars to identify those programs for which City Council has already expressed an interest (examples: Youth Services, Homelessness, etc.) and identify the appropriate State agencies to which to direct letters of inquiry and interest so that the City can be considered for this and attach thereto relevant information regarding specific City of Dover programs or needs.
By consent agenda, Mrs. Williams moved for approval of the committee’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
In reviewing the available programs, Mrs. Russell stated that she would like for the City to obtain assistance with Head Start, Child Care, and, not only for men, but she would also like to see Transitional Housing for Women, and requested that staff include this in their letter.
Updates
Members were provided the following updates:
Puncheon Run Watershed Action Team Update
Due to the absence of Mr. Koenig, no update was provided for the Puncheon Run Watershed Action Team.
Planning and Funding for New Library
Ms. Cyr, Library Director, reviewed update information regarding the planning and funding for the new Library. She advised members that, beginning today, soil testing for environmental issues on the parking lot has begun and should take approximately one week to complete. It is anticipated that the schematic designs should be received by mid-April and the next phase will be the design and development phase. Ms. Cyr stated that staff is currently working with Horizon Philanthropic to design a capital campaign for the Library’s fund raising project and will be reviewing their proposal at the Library Steering Committee meeting on Thursday.
Ms. Cyr stated that City Council approved the creation of a library foundation and the paperwork has been sent to the IRS for the 501(C)3 status. She advised members that the process of looking for a construction manager for the library’s building project has begun and that the architects will be back on March 30th and 31st and a public hearing will be held on March 30th at 7:00 p.m. in the Council Chambers at City Hall.
Mrs. Russell suggested that there be a contest to allow for public participation in the naming of a room at the new library. Ms. Cyr stated that she would present the idea to the Steering Committee for their consideration.
Referring to a recent discussion between the City and County, Mr. Ruane requested that the committee be kept abreast of the proposal to collaborate on funding the library. Ms. Cyr stated that she would discuss the presentation of the proposal with the City Manager to determine how the proposal would be presented. At the request of Mr. Ruane, Ms. Cyr stated that the Power Point Presentation provided to the City/County Committee would be made available to the committee for their information. She stated that a presentation of the proposal would be made at a Library Commission Meeting scheduled for March 18th, at 5:00 p.m., and that anyone is welcome to attend the meeting.
After discussing the matter, it was suggested that a separate presentation be provided to the committee during their next regular meeting scheduled for April 13th.
CDBG Program
Mrs. Harvey, Community Development Director, reviewed the Status of the FY2008 CDBG Program provided to members. She advised members that all projects are on schedule with the exception of the Dover Interfaith Ministry to the Homeless, who are in the process of negotiations for the purchase of property located on Forest Street (across from the Salvation Army).
Mrs. Russell questioned the possibility of using the condemned City-owned property at 101 Jefferson Court for transitional housing for women. Responding, Mrs. Harvey stated that she would have to talk with the Director regarding the time limits for property to remain vacant in accordance with the vacant building ordinance and report this information back to members.
Mrs. Mitchell, Treasurer/Controller, advised members that there is a receivable on the City’s books for the costs for renovations, demolition, etc. that would be recouped with the sale of the property. Should the City choose not to sell the property, these expenses would need to be written off. Mrs. Russell suggested that the property would remain on the market; however, rather than it being vacant, she felt that it could be beneficial if the property were used during this interim period.
Schutte Park Space - Boys and Girls Club/CDSA
Mr. Tingle, Executive Director of the Greater Dover Boys and Girls Club, advised members that although the Greater Dover Boys and Girls Club remains committed to building a facility at Schutte Park, due to the economic situation across the nation, he stated that the Corporate Board has decided to suspend any public campaigns to raise funds for 12 to 18 months. After this time period, he stated that the Board will revisit the economic situation and the position of their major donors.
During this “quiet phase”, Mr. Tingle stated that they will finalize their plans for the facility, as well as work on putting together the leadership team to guide this project. He relayed appreciation for the City’s patience and understanding during this difficult period.
Responding to Mrs. Russell, Mr. Tingle suggested that any recommendations for appointment of members to the Boys and Girls Club Board should be directed to him.
Youth Advisory Committee
Mrs. Russell advised members that the first Youth Advisory Committee meeting was held on February 18, 2009 and that their next meeting will be held on March 18, 2009, at which time they will be electing their officers. She stated that the members will also be participating in the St. Patrick’s Day Parade on Saturday.
Mrs. Williams moved for acceptance of the Parks, Recreation, and Community Enhancement Committee Report, seconded by Mr. Salters and unanimously carried.
UTILITY COMMITTEE REPORT - MARCH 9, 2009
The Utility Committee met on March 9, 2009 with Chairman Ruane presiding.
Federal Stimulus Program and Dover’s Utilities and Energy Programs
Members were provided information received from the United States Conference of Mayors which summarizes all aspects of the Federal Stimulus Program. Mr. DePrima reviewed the City’s utilities and energy programs, as follows:
Water/Wastewater
Mr. DePrima provided members with a list of the City’s Water/Wastewater Infrastructure Improvement Projects that were submitted to the State of Delaware, which total more than $14M. He noted that the Federal Stimulus Program includes a Clean Water State Revolving Fund ($4B) and Safe Drinking Water Revolving Fund ($2B). Unfortunately, he advised members that the City’s water projects will not be beneficiaries of the stimulus funds; however, it allows for other State Revolving Funds to be made available to allow the City to be better positioned for acquiring a low interest loan, which is being reviewed by the City’s Controller/Treasurer. With regards to the City’s projects that would be included in the Clean Water State Revolving Fund, Mr. DePrima stated that the City has not been advised as to their inclusion.
Mr. Ruane suggested that staff keep in touch with the State and consider a letter to Congress regarding these funds reaching the City level.
Energy Block Grant
Mr. DePrima referred to the Energy Efficiency and Conservation Block Grant Program and explained that these monies will be given directly to municipalities. He noted that there are issues regarding this program that have not been resolved, such as how the program will work, the formulas, etc.
Mr. Ruane encouraged staff to identify projects and build a file and contact list so that the City can move quickly once the issues regarding this program are resolved.
Renewable Energy
Mr. DePrima explained that the State Energy Program consists of funds that would be provided to the Governor’s Office. He stated that a meeting is being scheduled with the Governor to allow the City to indicate their interest and the Governor’s consideration of available funds.
Mr. DePrima stated that the City is also interested in obtaining funds through the Home Weatherization Program.
Mr. Ruane requested that staff keep members abreast of these matters.
PACE/NAES Monthly Report (January)
Members were provided the PACE/NAES Monthly Reports for January 2009. The reports are being provided to allow members the opportunity to monitor what is being sold in electric and the revenues received, which will give members a better understanding of any fluctuations and make improvements if deemed necessary. Although it was not staff’s intention to make a presentation of the report, they welcomed any questions.
Mr. Ruane questioned if there has been consideration of allocating the emission sales revenue to a reserve account or non-recurring cost as opposed to operations. Responding, Mr. DePrima suggested that this issue could be discussed during an upcoming Energy Management Committee Meeting. He cautioned members that any revenue loss would need to be made up through rates.
Mr. McGiffin relayed his reluctance in removing the emission sales from revenue.
Status Report - McKee Run Station Pollution Remediation Project
Members were provided details regarding the McKee Run Station Pollution Remediation Project. Mr. Vince Scire, Plant Manager at McKee Run, reminded members that this project consists of activities which will reduce emissions of NOx and SOx at the McKee Run Generating Station in supporting the goals of the Delaware Regulation 1146. He reviewed the progress report for the project. He noted that the activities remaining are scheduled for June.
Responding to Mr. Ruane, Mr. Scire confirmed that this approach has resulted in significant savings.
By consent agenda, Mrs. Williams moved for acceptance of the Utility Committee Report, seconded by Mr. Salters and unanimously carried.
LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - MARCH 9, 2009
The Legislative, Finance, and Administration Committee met on March 9, 2009 with Chairman Slavin presiding.
Review and Recommendations - Filling 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. Slavin noted that there are no critical positions to be considered at this time; therefore, no action was required of the committee.
Implementation of MAG Report - Phase I (Tabled by Committee February 23, 2009)
During their meeting of February 23, 2009, members considered staff’s recommendation for implementation of Phase I of the MAG Report, as follows: 1) Adoption of salary ranges for each grade; 2) Adoption of recommended grade changes for 30 positions and salary adjustments for three (3) positions; 3) Adoption of the market a