LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on April 14, 2008 at 6:00 p.m. with Chairman Slavin presiding. Members present were Mr. McGlumphy, Mr. Salters, Dr. Jones, and Mr. Shevock. Other members of Council present were Mr. Leary, Mr. McGiffin (absent from 6:40 p.m. to 6:49 p.m.), Mr. Hogan (absent from 6:40 p.m. to 6:43 p.m.), Mr. Ruane, and Council President Williams.
AGENDA ADDITIONS/DELETIONS
Mr. Slavin requested to move item #3 - General Fund Capital Improvement Projects, to be considered last due to the possibility of a time issue.
Mr. McGlumphy moved for approval of the agenda, as amended, seconded by Mr. Salters and unanimously carried.
Revised Purchasing Policy
Members were provided a Revised Purchasing Policy, which was reviewed by Mrs. Mitchell, Controller/Treasurer. She indicated that the proposed revised policy includes major changes to the current Purchasing Policy, such as flow charts, thresholds for requiring Council approval, etc. and the addition of an appendix and glossary, which will better assist staff.
Mr. McGlumphy moved to recommend approval of the Revised Purchasing Policy as presented by staff (Attachment #1), seconded by Mr. Shevock and unanimously carried.
Downtown Dover Development Corporation (DDDC) - City Loan Guarantee and Proposed Resolution Adopting a Slum Clearance and Redevelopment Authority in Accordance with the Provision of 31 Del. C. §4051, Et Seq.
Mrs. Mitchell, Controller/Treasurer, advised members that the Downtown Dover Development Corporation (DDDC) has solicited loan proposals for Economic Development in the central business district, the details of which were provided to members for their review. She indicated that four (4) proposals were received from the following banks: 1) Citizens Bank; 2) PNC Bank; 3) Wachovia Bank; and 4) Wilmington Trust.
Mrs. Mitchell explained that the purpose of the loan is for the purchase of property located at 120 and 144 South Governors Avenue for redevelopment. She noted that the requested loan amount is greater than the most recent appraisal on the properties and that banks normally require 15% to 20% equity in the property. In order to secure the loan and obtain the lowest possible interest rate, it was suggested that the City guarantee the loan. She assured members that the proposal has been reviewed by the City Solicitor and Bond Counsel to insure compliance with City and State Codes, as well as securing the City’s guarantee.
Mrs. Mitchell stated that the DDDC recently met and approved the proposal provided by PNC Bank with the understanding that Council approval would be required for the City guarantee. The proposal includes the following: 1) $1.3 million tax exempt loan; 2) 5 year balloon payment; 3) Interest only payments (at current rates, $47,970 annually); 4) Current interest rate in the amount of 3.69% (will be based on rate at time of closing); and 5) Closing costs will be paid from remaining loan proceeds. Mrs. Mitchell noted that the loan payments will be made from the tenants’ lease payments.
Staff recommended approval for the City of Dover to provide a guarantee on a loan to purchase two (2) adjoining parcels located at 120 and 144 South Governors Avenue.
Mr. DePrima explained that in accordance with the City Solicitor, the Slum Clearance and Redevelopment Authority Act (31 Del. C. §4501, Et Seq.) provides that the City of Dover may, by resolution, adopt the exercise of powers, functions, and duties by the community itself as provided in the Act. Members were provided a proposed Resolution, prepared by the City Solicitor, for their review.
Mr. Ruane noted that there are many elements to the Slum Clearance and Redevelopment Authority Act and suggested that staff provide a better explanation at a future meeting.
Mr. Salters moved to recommend approval of staff’s recommendation and adoption of the Resolution (Attachment #2), seconded by Mr. McGlumphy and unanimously carried.
It was noted that, due to time constraints, this matter has been placed on the Council agenda for later this evening for review and final approval.
Salary Re-Grading of Non-Bargaining Positions
Mr. DePrima, City Manager, advised members that the recent decision by City Council to use the PAS Position Factor Analysis Scoring for the ControllerTreasurer position “without adjustments” brings about the need to review several other positions that used the same scoring but were adjusted by City Council in the past.
Members were provided a memo from Mrs. Hawkins, Human Resources Director, regarding the Grading of Non-Bargaining Positions. In reviewing the memo, Mr. DePrima noted that there are currently 12 positions that were graded lower by City Council in July 2003 than PAS Position Factor Analysis Scoring recommended and that there are an additional eight (8) positions that were created after the initial PAS recommendations. In grading these, the Human Resource Director took into consideration the adjustments made by City Council. Mr. DePrima explained that this was necessary to control internal equity so that similar scoring yielded similar salary grades. In addition, he stated that it was discovered that three (3) positions created during the re-organization of Public Services and Public Utilities never had job descriptions developed by the former Human Resources Director and that it appears that the Police Manager job description also does not follow the required format. Mr. DePrima indicated that the table is incomplete, noting that there are two (2) additional positions in the Finance Department that are not listed and that there may be others. He advised members that all these discrepancies are now being corrected by Mrs. Hawkins.
Mr. DePrima stated his opinion that this action will go a long way toward improving hiring and retaining employees at these salary grades, which has been a real problem in recent years. The City has lost very qualified employees in recent years, and when filling critical positions, there have been several instances where few applications were received, and it has taken extraordinarily long periods of time to find qualified candidates. He advised members that most recently, the Chief Building Inspector and Library Director have resigned.
Staff recommended acceptance of the recommendations and re-grade positions listed in the Human Resources Director’s memo dated April 7, 2008 in accordance with the PAS Policy using the Position Analysis Factor Scoring system.
Responding to Mr. Slavin, Mr. DePrima confirmed that there were some concerns of providing large increases, as recommended in the PAS Study, to upper management salaries. He explained that in 2003, there was a sub-committee, consisting of the Mayor and a couple members of Council and the City Manager, who determined that generally, the top third should be downgraded; the middle third remained the same with very few adjustments; and the bottom third was increased. Effectively, these changes resulted in some employees being subjected to downgrading and others who were not. It was Mr. Slavin’s opinion that the recommendations and re-grading of the positions at this time is a question of fairness and equity.
Mr. McGlumphy indicated his reluctance in taking any action on this matter at this time without a financial impact statement for the current and next fiscal year. He also reminded members that Council recently approved the hiring of the Management Advisory Group to conduct a Review and Evaluation of the PFP Evaluation System and questioned how these results may affect certain positions. He referred to information provided by the Human Resources Director last year that indicated that the City of Dover joined Kent County in a market survey conducted by LaFlamme & Associates, Inc. and that it was concluded and reported in the FY2006-2007 Budget that the study showed that the City of Dover was in market range and no changes in grade were necessary. He questioned how staff concluded that changes are required in such a short period of time.
Responding, Mr. DePrima stated that this matter was not being submitted due to a needed market adjustment, explaining that this matter is being submitted due to a discrepancy in scoring adjustments and, as previously indicated by Mr. Slavin, to provide fairness and equity for all employees affected by the scoring system.
Mr. Salters felt that when action was taken by Council in 2003 to downgrade positions, there was no consideration of the impact it would have on retention, quality of employees attracted, etc. Unless action is taken to correct this matter, the City will be in dire straits when it comes to obtaining qualified and expert employees. Although it may cost the City to take the corrective action, Mr. Salters suggested that there are means to make financial adjustments in the budget to implement the process during the next fiscal year. It was his feeling that the previous action has created a morale problem for employees and that Council should take corrective action in fairness to the employees.
In response to Mr. Ruane, Mr. DePrima advised members that the City did not exercise the optional maintenance agreement with PAS to provide a salary survey and recommended market adjustment ranges. Mr. Ruane encouraged members to consider amending the current contract with Management Advisory Group to conduct a Review and Evaluation of the PFP Evaluation System to include the optional maintenance agreement. Responding, Mr. DePrima stated that he would request information regarding the costs involved to include a market study.
Being familiar with the type of system provided by PAS, Mr. Hogan indicated his experience that no one ever made any adjustments whatsoever to a PCQ rating since it would give the impression of “doctoring” the system. He noted that when a standard format was created to provide a score for positions within the City, a system was developed. The City then “doctored” this system by changing some of the results, which he felt provides an unfairness. It was his opinion that the City should utilize the system originally created to make it fair, or it should be discarded in its entirety.
Mr. Salters moved to recommend tabling this matter until the next meeting, seconded by Mr. McGlumphy and unanimously carried.
Request for Financial Assistance for Dover/Kent County MPO (Unified Planning Work Program)
Members considered a letter, dated January 24, 2008, from Ms. Juanita Wieczorek requesting financial assistance in the amount of $6,175 for the Dover/Kent County MPO’s Annual Unified Planning Work Program (UPWP). These funds would be used to provide supplemental insurance benefits to MPO employees.
Mr. DePrima advised members that the City of Dover is a member of the Kent County MPO Council. During their approximate15 years of membership, he stated that the City has never contributed cash to the organization, but rather offered in-kind services, which is the required match.
Ms. Wieczorek advised members that the Levy Court granted the MPO $1,000 to help with these costs during FY2008. She stated that a Community Services Grant application was submitted to Kent County Levy Court requesting $6,175 and that, to date, no response has been received.
Mr. Slavin suggested that it would be more appropriate for this matter to be considered by City Council during the Budget Hearings.
Mr. Salters moved to recommend that the request of the Dover/Kent County MPO for financial assistance, in the amount of $6,175, be considered by City Council during the Budget Hearings, seconded by Dr. Jones and unanimously carried.
Due to time constraints, and there being no objections, Mr. Slavin stated that item #3 - General Fund Capital Improvement Projects (Excluding Recreation) - FY 2008-09, will be deferred until the next committee meeting.
Mr. Shevock moved for adjournment, seconded by Mr. McGlumphy and unanimously carried.
Meeting Adjourned at 7:08 P.M.
Respectfully submitted,
Timothy A. Slavin
Chairman
TAS/TM/jg
S:ClerksOfficeAgendas&MinutesCommittee-Minutes20084-14-2008 LF&A.wpd
Attachments
Attachment #1 - Revised Purchasing Policy
Attachment #2 - Proposed Resolution - Slum Clearance and Redevelopment Authority