REGULAR COUNCIL MEETING
The Regular Council Meeting was held on December 8, 2008 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, Deputy City Solicitor Pepper, 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.
AGENDA ADDITIONS/DELETIONS
Mr. Slavin moved for approval of the agenda as presented, seconded by Mr. McGiffin and unanimously carried.
Mr. McGlumphy requested that item #3, Utility Committee Report of November 24, 2008 - Water/Wastewater Projects - Financing, be removed from the consent agenda.
Mr. Slavin moved for approval of the consent agenda as amended, seconded by Mr. Leary and carried by a unanimous roll call vote.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF NOVEMBER 24, 2008
The Minutes of the Regular Council Meeting of November 24, 2008 were unanimously approved by motion of Mr. Slavin, seconded by Mr. Leary and bore the written approval of Mayor Carey.
PUBLIC HEARING/FINAL READING - REZONING OF PROPERTY LOCATED AT 721 WEST DIVISION STREET, OWNED BY BENNIE L. AND SHIRLEY M. SMITH
A public hearing was duly advertised for this time and place to consider rezoning of property located at 721 West Division Street, consisting of 7,500+/- square feet, owned by Bennie L. and Shirley M. Smith. The property is currently zoned M (Manufacturing), subject to the COZ-1 and the proposed zoning is C-2A (Limited Central Commercial), subject to the COZ-1 (Corridor Overlay Zone 1).
Mr. Leary moved that the Final Reading of the proposed rezoning ordinance be acknowledged by title only, seconded by Mr. Salters and unanimously carried. (The First Reading of this ordinance was accomplished during the Council Meeting of October 27, 2008).
Planner's Review
Mrs. Townshend, City Planner, reviewed the petition to amend the zoning district and the findings and recommendations of the Planning Commission (Exhibit #1).
Public Hearing
Council President Hogan declared the hearing open. There being no one present wishing to speak,
Council President Hogan declared the hearing closed.
Mr. Salters moved for approval of the rezoning request, as recommended by the Planning Commission. The motion was seconded by Mrs. Russell and by a unanimous roll call vote, Council adopted Ordinance No. 2008-40, as follows:
AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 721 WEST DIVISION STREET
WHEREAS, the City of Dover has enacted a zoning ordinance regulating the use of property within the limits of the City of Dover; and
WHEREAS, it is deemed in the best interest of zoning and planning to change the permitted use of property described below from M (Manufacturing) subject to the COZ-1 (Corridor Overlay Zone 1) to C-2A (Limited Central Commercial) subject to the COZ-1 (Corridor Overlay Zone 1).
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. That from and after the passage and approval of this ordinance the Zoning Map and Zoning Ordinance of the City of Dover have been amended by changing the zoning designation from M (Manufacturing) subject to the COZ-1 (Corridor Overlay Zone 1) to C-2A (Limited Central Commercial) subject to the COZ-1 (Corridor Overlay Zone 1) on that property located at 721 West Division Street, consisting of 7,500+/- square feet, owned by Bennie L. and Shirley M. Smith.
ADOPTED: DECEMBER 8, 2008
UTILITY COMMITTEE REPORT - NOVEMBER 24, 2008
The Utility Committee met on November 24, 2008 with Chairman Ruane presiding.
Water/Wastewater Projects - Financing
Mrs. Mitchell, Controller/Treasurer, reviewed the Water/Wastewater Projects Financing Presentation to provide information on alternative project funding options in lieu of the Bond Issue that was deferred due to current bond market conditions. She advised members that the total original budget for Water/Wastewater Capital Improvement projects was $13,824,153, which included the beginning and ending budget balances, which were used as sources of revenue. Mrs. Mitchell stated that the revised budgets were based on audit results. She noted that the dramatic change in Wastewater was due to having $850,000 from Wastewater Impact Fees in last year’s budget for projects, which were either deferred or partially completed. The unspent funds which were not revenue were transferred back to the Impact Fee Reserve.
Mr. DePrima, City Manager, noted that the presentation was being made as a “what if” scenario to fund projects based on the current economic situation. Mrs. Mitchell noted that the proposed Bond Issue would have provided $6,325,800 for Water and $4,934,500 for Wastewater projects. She advised members that bank qualified loans and state revolving funds are being considered as alternatives to the bond issue.
Mr. Ron Lunt, Public Utilities Director, advised members that the projects have only been deferred, not cancelled. He reviewed the project revisions, noting that some projects are moving forward, some are not ready to move forward, and some are in the engineering/design phase. It was noted that the following projects have been included in the revised budget:
Washington Street South Street E. State Street
Contact Chambers Bayard Avenue Design Pear Street
Route 13 Bayard Avenue Construction
Mr. DePrima advised members that staff would be vigilant in monitoring the bond market and the
construction environment to determine the right time to begin projects.
Responding to Mr. Ruane, Mr. Lunt stated that the Inflow/Infiltration Removal/System Improvements project was deferred due to funding. Mrs. Mitchell assured members that all financial policies would be adhered to when transferring the funds. She noted that the City is in a better position than many neighboring communities because early payoff of bonds reduced debt service and allowed them to set aside funds in Capital Project reserves.
Mr. Ruane noted that the National League of Cities is encouraging municipalities to develop a list of “ready to go” infrastructure projects in advance of a possible Federal stimulus bill dedicated to infrastructure or State revolving loan fund opportunities.
The committee recommended that the City Manager be directed to prepare a list of “ready to go” Water/Wastewater projects.
Mr. Slavin moved for approval of the committee’s recommendation, seconded by Mr. Salters and unanimously carried.
Mr. Ruane requested that if staff determines that a project is ready to move forward, that the project and the funding source be brought back to the committee for review and approval.
Staff recommended approval of the alternative financing plan, as presented.
The committee recommended approval of staff’s recommendation to use Impact Fee Reserves, Capital Asset Reserves (Water and Wastewater) to continue those projects outlined in the document revised November 24, 2008.
With reference to the projects listed, Mr. McGlumphy noted that several of the projects were based on the approval of a bond issue; however, he stated that it has been determined that a bond issue would not be in the best interest of the City at this time. As a result, an alternative would be to utilize funds from the reserve accounts and questioned the City’s Controller/Treasurer as to whether this would be a wise decision for Council.
Responding, Mrs. Mitchell explained that the funds are capital reserves that were set aside to assist in financing projects. She reminded members that in accordance with the Financial Policies, there is a $500,000 minimum for each of the reserve accounts. Utilizing these funds for the projects would deplete the accounts to less than $100,000 each. However, Mrs. Mitchell stated that the Financial Policies indicates that if the minimum balances are less than $500,000, the City must replenish the funds at $100,000 per year until the funds are replenished.
Mr. McGlumphy relayed concern regarding the availability of funds should there be an emergency such as a pipe bursting. Responding, Mrs. Mitchell explained that there are capital reserves to be used for capital projects and there are contingency reserves to be used for emergencies and non-insured losses. She assured members that the contingency reserves are not being utilized for funding capital projects.
In response to Mrs. Williams, Mrs. Mitchell stated that due to the fact that the City is not issuing bonds for financing capital projects, it has been necessary to defer some of the projects until such time that either the market is at a state that would be beneficial to the City to issue bonds, or the City can obtain other financing sources that would be favorable to the City. She explained that the use of the capital reserves is an interim step until such time that the City goes to the bond market or finds alternative sources to finance the projects.
Mrs. Williams also questioned the need for projects in order to provide work for City employees. Responding, Mrs. Mitchell stated that the work on the water contact chambers project is being performed by the City’s Utility Construction Crew and without this project, there would be no work for these employees.
Responding to Mr. Leary, it was Mrs. Mitchell’s opinion that, should market conditions be favorable to the City to issue bonds, the capital reserve funds used for the capital projects could not be replenished by the use of bond money and that the replenishment should come from operating funds. She reiterated that if the City is not able to issue bonds or find alternative funding sources for the remaining projects, the City could experience having employees without any work to be performed.
Based on the discussion, it was Mr. Slavin’s opinion that the bigger issue is what infrastructure improvements and projects are necessary to fund as a part of the City’s ongoing responsibilities, what the City can afford to fund, and how the City is searching for funding sources for some of the projects.
Mr. Ruane noted that the original Capital Improvements Projects totaled $13.8M and that due to the financing issues, the projects have been pared down to $4.1M. He felt confident that staff has been prudent in bringing this matter forward. He also felt that the water quality issues, which are projects that have been included, are matters for which the City should not delay any further. As recommended by the committee, he indicated that those projects being deferred as a result of the economy will be eligible for the stimulus package.
Responding to Mayor Carey, Mrs. Mitchell stated that money had been put aside in the capital reserve for situations like this. She feels it is a positive for the City and does not anticipate it affecting the bond rating.
Mr. Slavin moved for approval of the committee’s recommendation for approval of staff's recommendation to use Impact Fee Reserves, Capital Asset Reserves (Water and Wastewater) to continue those projects outlined in the document revised November 24, 2008 (Exhibit #2), seconded by Mr. Salters and unanimously carried.
Mr. Slavin moved for acceptance of the Utility Committee Report, seconded by Mr. Salters and carried with Mr. McGlumphy voting no.
LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - NOVEMBER 24, 2008
The Legislative, Finance, and Administration Committee met on November 24, 2008 with Chairman Slavin presiding.
Amendment to Purchasing Policy
Mrs. Mitchell, Controller/Treasurer, reviewed proposed amendments to the City of Dover Purchasing Policy and Procedures. She advised members that recent purchases have highlighted the need to amend the policy to provide flexibility to allow vehicle and equipment purchases which are over budget as long as the overage can be made up through savings on other vehicles and equipment. Mrs. Mitchell stated that the amendment clarifies that the low bidder must meet the bid specifications and it segregates Section 6, Exceptions, as a separate section which applies to the whole policy.
Referring to Section 10, Green Procurement, Mr. Ruane advised members that there is a new chapter in the State Procurement Code entitled The Energy Performance Contracting Act, copies of which have been provided to the City Manager and the Controller/Treasurer for their review. He suggested utilizing performance contracts in the bidding process.
Staff recommended approval of the amendments to the City of Dover Purchasing Policy and Procedures, as presented.
The committee recommended approval of staff’s recommendation.
By consent agenda, Mr. Slavin moved for approval of the amendments to the City of Dover Purchasing Policy and Procedures, as recommended by the committee (Exhibit #3), seconded by Mr. Leary and carried by a unanimous roll call vote.
By consent agenda, Mr. Slavin moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mr. Leary and carried by a unanimous roll call vote.
MONTHLY REPORTS - OCTOBER 2008
By motion of Mr. Slavin, seconded by Mr. Leary, the following monthly reports were accepted by consent agenda:
Budget Report
Chief of Police Report
City Assessor Report
City Manager's Report
City Planner’s Report
Dover Fire Department Report (October and November)
CIP Report
RESOLUTION IN SUPPORT OF NATIONAL LEAGUE OF CITIES - THE FUTURE OF OUR HOMETOWNS AND OUR NATION - AN AGENDA FOR THE NATION
Members were provided information on The Future of Our Hometowns and Our Nation - An Agenda for the Nation, issued by the National League of Cities (NLC). Council President Hogan reviewed the information which was provided to members who attended the recent NLC convention. He noted that the NLC has requested that cities and towns draft Resolutions in support of the issue of action for the nation. As requested, Council President Hogan stated that a draft Resolution has been prepared and presented for member’s consideration.
As indicated in the draft Resolution with regards to advocating for immediate stimulus legislation providing for infrastructure projects, Mr. Ruane suggested that there be an understanding that the City can reinforce the resolution by not only attaching the list of projects that are necessary to defer for water/wastewater but any other projects identified by the City Manager as having to be deferred. It was his feeling that the inclusion of such a list would be very specific and that the City would not be providing a nebulous document. He noted that the City would need $1M every year for the next 50 years for the replacement of pipes which, he felt, is the message that should be sent to Washington along with the Resolution.
Mr. McGiffin moved for adoption of the Resolution in support of the National League of Cities - Agenda for the Nation. The motion was seconded by Mrs. Russell and by a unanimous roll call vote, Council adopted Council Resolution No. 2008-22, as follows:
WHEREAS, America's future is taking shape - right now - in the nation's cities and towns. To make it a better future for all Americans, we need to work together at all levels of government to find solutions to the critical challenges we face, from the economy and housing to health care and public safety; and
WHEREAS, The National League of Cities (NLC) is the nation's oldest and largest organization devoted to strengthening and promoting cities as centers of opportunity, leadership, and governance. The NLC is a resource and advocate for 19,000 cities, towns and villages, representing more than 218 million Americans; and
WHEREAS, among NLC’s priorities for the organization in 2009 is leading the call for economic stimulus through investments in the nation's cities and their residents. NLC is advocating for immediate stimulus legislation providing for infrastructure projects, temporary increases for Medicaid and other social services, along with assisting cities to gain access to credit markets. Additionally, NLC has released its Agenda for the Nation, a list of priorities it will promote during the course of the next year. This agenda highlights eight priority areas for hometowns and the country that demand the attention of all elected leaders: Housing, Infrastructure, Health Care Reform, Poverty Reduction and Economic Opportunity, Public Safety and Homeland Security, Sustainability, Immigration, and Governments Working Together.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the City of Dover pledge to support the initiatives, known as The Future of Our Hometowns and Our Nation - An Agenda for the Nation, adopted by the National League of Cities and urge cities from around the nation to join this effort.
ADOPTED: DECEMBER 8, 2008
EVALUATION OF BIDS - TREE TRIMMING CONTRACT
Members were advised that the Public Utilities Department maintains blanket contracts with potential contractors to ensure that the bidding rules are adhered to for contractors that are hired to perform work for the Utility Department. These contracts are priced as “time and material” contracts and may exceed $25,000 annually. Staff submitted a proposal for a tree trimming contract used to maintain clearance around the City’s overhead electric lines. This is the single most important maintenance project related to the reliability of the City’s overhead system.
Mr. DePrima, City Manager, advised members that bids were solicited for a tree trimming contract used to maintain clearance around the City’s overhead electric lines and that four (4) potential vendors submitted bids; however, one (1) was rejected due to incomplete bid submissions. Based on an evaluation of the remaining proposals, it was determined that all three (3) remaining bidders were qualified. As a result, staff developed a bid summary utilizing the unit prices for the standard crews, which indicated that Nelson Tree Service, Inc. (Nelson) was the low bidder. He noted that, typically, the utility employs two (2) full time crews on the property to perform this maintenance and that this company has crews available to assist during storm events and assured members that the proposal includes pricing for this potential event. Mr. DePrima indicated that references for Nelson were contacted and that staff received positive responses. The duration of the bid is a three (3) year contract with the possibility of a fourth (4th) and fifth (5th) year extension, dependent upon satisfactory performance.
Staff recommended awarding a three (3) year (2009, 2010, and 2011) Tree Trimming Contract to the low bidder, Nelson Tree Service, Inc., with a City option to extend it an additional two years (2012 and 2013), for a total of five years.
Mr. McGiffin moved for approval of staff’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
EVALUATION OF BIDS - SANITARY SEWER MAIN RELINING AND STRUCTURE REPAIR CONTRACT
Members were advised that in April 2006, the City of Dover had an investigation performed on certain lines within the sanitary sewer system. The conclusions of the investigation indicated that rehabilitation of certain sections of the system must take place. Mr. DePrima, City Manager, stated that after researching possible solutions to the problem, staff solicited a Request for Proposal that provides unit pricing for all anticipated repairs, as well as a projected scope of work. Proposals were received from Abel Recon and Tri-State Grouting. He assured members that both bidders understand that the scope of work is dependent upon budgets and there is no guaranteed of work provided by this contract.
Mr. DePrima stated that the proposals were evaluated and that staff performed a thorough review, including an interview of both contractors. Due to the variety of pricing strategies and work required under this proposal, staff developed several job scenarios to evaluate the cost components of the submittals. Rates from the two (2) bidders were inserted into the scenarios and it was determined that the bid received from Abel Recon was lower on a total cost of ownership basis. Although Tri-State Grouting had a lower initial price, the material that will be used only has a life expectancy of 50 years. Abel Recon, on the other hand, has a life expectancy of 80 years. Mr. DePrima explained that an aspect taken into consideration for the evaluation was the structural integrity of the relining product. While both companies had statistical evidence that their product would meet the minimum requirements specified by the City, Abel Recon demonstrated significant advantages in all categories, in addition to the 30 year advantage on the life expectancy of the product. He stated that a third facet of the evaluation that has been taken under consideration is the effect this project would have on the customers of the City of Dover. Tri-State Grouting has indicated that customers could be out of service for eight (8) hours, whereas Abel Recon indicated that customers would be out of service for three (3) hours.
Staff recommended awarding a three year (2009, 2010, and 2011) Sanitary Sewer Main Relining and Structural Repair Contract to Abel Recon, with a City option to extend it an additional two (2) years (2012 and 2013), for a total of five (5) years.
At the request of Mr. McGlumphy, Mr. Lunt stated that he would provide the details regarding the amount of pipe replacement that would be provided by the proposed contract.
Mr. Slavin moved for approval of staff’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote.
FIRST READING - ORDINANCE NO. 2008-44 - ADOPTION OF THE CITY OF DOVER 2008 COMPREHENSIVE PLAN
Mrs. Townshend, Director of Planning and Inspections, advised members that the proposed ordinance is for the adoption of the City of Dover 2008 Comprehensive Plan and noted that members received a draft of the Plan in November 2008. She advised members that the Planning Commission held a public hearing during a Special Meeting on December 2, 2008 and recommended adoption of the 2008 Dover Comprehensive Plan Final Draft dated October 31, 2008, with revisions. It was recommended that a public hearing be set before City Council on January 5, 2009 at 6:00 p.m. and that final action and adoption of the ordinance by Council be scheduled to take place during their Regular Meeting of January 12, 2009.
At the request of Mr. Ruane, Mrs. Townshend advised members that the Planning Commission had recommended including areas in the annexation area which are owned by the Dover International Speedway, located east of State Route 1 . She stated that this area was previously included in the Plan; however, due to objections by the State, it was removed by staff. Mrs. Townshend indicated that the State Planner, Mrs. Connie Holland, had advised the City that during the State’s review, the Department of Agriculture had indicated that they would not approve of the Plan Certification if the City included those areas east of State Route 1 in the annexation area. As a result, Mrs. Townshend stated that she has begun discussing this issue with Mrs. Holland, as well as representatives of the Dover International Speedway, in an effort to resolve the issue prior to Council’s final consideration of the matter on January 12, 2009. If it is not resolved prior to this time, she suggested that the matter could be tabled and requested that members move forward with the First Reading and setting of the public hearing at this time and allow staff to continue to work on resolving this issue.
Responding to Mrs. Williams, Mrs. Townshend stated that, based on recent discussions with the State, she anticipates that the issue will be resolved.
Council President Hogan reminded the public that copies of the proposed ordinance are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Since the Comprehensive Plan serves as the basis of land use decisions and policy, including the Zoning Ordinance, Council President Hogan indicated that a public hearing is required. The proposed ordinance is for the adoption of The Dover Plan: 2008 Comprehensive Plan “From the People - For the People 2008 - 2013", as amended and recommended by the Dover Planning Commission. It has been recommended that a public hearing be set for January 5, 2009 at 6:00 p.m. before City Council and that the Second Reading and final action by Council will take place during their Regular Meeting of January 12, 2009.
Mrs. Williams moved to set a public hearing before City Council for January 5, 2009 at 6:00 p.m. for consideration of Ordinance No. 2008-44, adoption of The Dover Plan: 2008 Comprehensive Plan “From the People - For the People 2008-2013”. The motion was seconded by Mr. Salters and the unanimously carried.
In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Proposed Ordinance Amendments as read by the City Clerk, by title only, as follows:
•Ordinance No. 2008-44 adopting The Dover Plan: 2008 Comprehensive Plan - From the People - For the People - 2008 - 2013", as amended.
COUNCIL MEMBERS ANNOUNCEMENTS
Mr. McGiffin reminded members to mark their calendar for June 27, 2009 for the next African American Festival.
Mayor Carey thanked the Downtown Dover Partnership Marketing and Promotion Committee for the successful parade held on December 6th for the Holidays Hometown Program and those that participated.
Concurring, Mr. Salters stated that the Holidays Hometown reception on December 5th was also well attended and he relayed his feeling that the downtown is moving in a positive direction.
Council President Hogan wished everyone Happy Holidays.
Mr. Leary moved for adjournment, seconded by Mrs. Williams and unanimously carried.
Meeting Adjourned at 8:11 P.M.
TRACI A. McDOWELL
CITY CLERK
All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of December 8, 2008, are hereby approved.
CARLETON E. CAREY, SR.
MAYOR
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Exhibits (attached to original and file copy)
Exhibit #1 - Petition to Amend Zoning District for 721 West Division Street, Owned by Bennie L. and Shirley M. Smith
Exhibit #2 - Outline of Projects - Impact Fee Reserves, Capital Asset Reserves (Water and Wastewater) - Document Revised November 24, 2008
Exhibit #3 - Revised City of Dover Purchasing Policy and Procedures