LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on July 14, 2008 at 6:00 p.m. with Chairman Slavin presiding. Members present were Mr. McGlumphy, Mr. Salters, and Dr. Jones. Other members of Council present were Mr. Leary, Mr. McGiffin, Mrs. Williams, and Council President Hogan.
AGENDA ADDITIONS/DELETIONS
Mr. McGlumphy moved for approval of the agenda, seconded by Dr. Jones and unanimously carried.
Financial Policy Review
During their meeting of June 23, 2008, members were provided a revised Financial Policy for their consideration. Mrs. Mitchell, Controller/Treasurer, reviewed a presentation of the Financial Policies and proposed changes. Due to time constraints, members accepted the report for further discussion. For clarification, Mr. McGlumphy indicated that as a result of the explanation provided regarding the transfer of funds from the utilities to the General Fund, members will have additional questions of the Controller/Treasurer and the City Manager.
Mrs. Mitchell continued the review of the presentation (beginning with page 16), which included responses to the committee recommendations made during their meeting of June 23, 2008 (see page 17). In response to the concern regarding the increase in utility transfers to the General Fund, she provided a table depicting the impact of transfer based on percentage. She reminded members that there was a suggestion to use a fixed dollar amount rather than a percentage.
Responding to Mr. McGlumphy, Mrs. Mitchell stated that although she had shared the same concerns regarding the General Fund dependency on the utility transfers, she reminded members that the City Manager had explained that there are instances when utility repair or replacement causes repair or replacement to a General Fund asset. As an example, when a new water or sewer line is installed, the streets are damaged. Since the General Fund pays for street improvements, the transfer allows for the utility to help recover some of the costs that it created.
With reference to the suggestion for the use of a fixed dollar amount rather than a percentage, Mr. DePrima stated that there is a need to review the transfer amount each year. He explained his understanding regarding a dramatic increase in power costs becoming a windfall for the General Fund, which is why the percentage was decreased from 8% to 6.5%. As an alternative, he suggested that a review be required if the power costs were to increase above a certain amount, such as 10% in any given year.
Concurring with Mrs. Williams, Mr. McGlumphy felt that the public would better understand the use of a fixed dollar amount rather than a percentage and that it would provide a more transparent government for the residents.
Mr. Salters moved to recommend acceptance of the Financial Policies (Attachment #1), seconded by Mr. McGlumphy and unanimously carried.
Selection of Architect - Dover Public Anchor Library
Members were advised that a “Request for Qualifications” (RFQ) was conducted for selection of an architectural firm for providing professional services for the Dover Public Anchor Library. Mr. Zach Carter, Parks and Recreation Director, advised members that 19 various entities responded to the RFQ and that 19 proposals were reviewed, with six (6) firms selected for interviews. In addition to himself, he advised members that the interview panel consisted of the following: Mr. DePrima, Councilman Ruane, Ms. Dorothy Snyder, Mr. Jim Stewart, Ms. Joan Stover, and Mrs. Kay Dietz-Sass. Mr. Mike Petit de Mange, Kent County Administrator, was also scheduled to be on the interview panel; however, he was not able to attend the interviews. Mr. Carter explained that the panel utilized criteria and a score sheet for determining the potential contractors. After the interview sessions and discussion among the panel, the firm of Holzman Moss was chosen for the project due to their experience with building public libraries. He indicated that Holzman Moss has been involved with the planning and design for more than 6.5 million square feet of library space and that the firm has developed a keen understanding of issues that must be addressed in the programming and design of libraries. Mr. Carter assured members that Holzman Moss has met all obligations to date.
Staff recommended awarding the Professional Services contract for the Dover Public Anchor Library to Holzman Moss Architecture firm for the amount of $530,750, which includes the total expenses and estimated 10 percent (10%) of project reimbursable expenses, and that the City Manager be granted permission to enter into the contractual agreement.
Mr. McGlumphy moved to recommend approval of staff’s recommendation, seconded by Mr. Salters and unanimously carried.
2008 Comprehensive Plan Review: Growth and Annexation Plan, Land Development Plan, and Economic Development
Due to time constraints, members deferred their review of the 2008 Comprehensive Plan during their meeting of June 23, 2008. Mrs. Townshend, Director of Planning and Inspections, provided members with Chapter 10 - Economic Development, Chapter 9 - Transportation, Chapter 12 - Land Development, and Chapter 13 - Growth and Annexation of the 2008 Comprehensive Plan Update for their review.
Mrs. Townshend advised members that the plan is to submit a draft 2008 Comprehensive Plan Update to City Council for forwarding to the State of Delaware. She assured members that although the Plan would be presented to the State, the City can continue to make revisions.
Responding to Mr. Slavin, Mrs. Townshend requested that, at this time, if there are any objections or concerns regarding these Chapters, that members provide their input; however, she reiterated that members will be provided the opportunity to make additional revisions.
Mr. Salters moved to recommend acceptance of the 2008 Comprehensive Plan Review: Growth and Annexation Plan, Land Development Plan, and Economic Development as presented by staff. The motion was seconded by Mr. McGlumphy and unanimously carried.
Audit Committee to Discuss the Fiscal Year 2008 Audit Program
Mrs. Mitchell, Controller/Treasurer, advised members that staff has been implementing a new standard for an Audit Committee for the last two (2) years. She introduced Ms. Janis Nesterak from the audit firm Faw, Casson and Company, LLP, who reviewed a presentation of the Auditor’s Responsibility for Communicating with the Audit Committee.
Mrs. Mitchell reviewed the planned scope and timing of audit, including future meetings and the audit calendar. To assist members with a better understanding, she provided information, including an article entitled A New Vision for Public Sector Audit Committees, issued by the Government Finance Review.
Mr. McGlumphy moved to recommend acceptance of report of the Auditor's Responsibility for Communicating with the Audit Committee (Attachment #2), seconded by Dr. Jones and unanimously carried.
Mr. Salters moved for adjournment, seconded by Mr. McGlumphy and unanimously carried.
Meeting Adjourned at 6:54 P.M.
Respectfully submitted,
Timothy A. Slavin
Chairman
TAS/TM/jg
S:ClerksOfficeAgendas&MinutesCommittee-Minutes20087-14-2008 LF&A.wpd
Attachment
Attachment #1 - Revised Financial Policy
Attachment #2 - Auditor’s Responsibility for Communicating with the Audit Committee Report