LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on February 25, 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, Mr. Hogan, Mr. Ruane, and Mayor Carey.
AGENDA ADDITIONS/DELETIONS
Mr. Salters moved for approval of the agenda, seconded by Mr. Shevock and unanimously carried.
Independent Accountant Report on Applying Agreed Upon Procedures - Haggerty & Haggerty, P.A.
During their meeting of February 11, 2008, members considered a request to amend the Robbins Hose Company Annual Contribution in the CIP. At that time, members tabled action to allow for the Haggerty & Haggerty Report to be brought forward and allow for the Fire Chief to be provided the opportunity to respond to the recommendations. Members were provided the Independent Accountant’s Report on Applying Agreed Upon Procedures pertaining to the Dover Fire Department prepared by Haggerty & Haggerty, Certified Public Accountants and Management Consultants.
Mr. Slavin noted that the goal of any audit is to provide the opportunity for improvements. It was his feeling that it’s the City’s desire to have the best fire department and best management of the City’s financial responsibilities and tax dollars.
Mrs. Mitchell, Finance Director/Treasurer, advised members that several months ago she relayed concerns regarding financial controls at the fire department, which resulted in a request for an independent accountant report.
Mr. Vincent Barbone of Haggerty & Haggerty advised members that he conducted the review of Agreed Upon Procedures for the Fire Department and reviewed the results contained in the report provided. With reference to the May 2006 withdrawal in the amount of $7,153.75 (Wilmington Trust Account #1294-4071), he advised members that since the finalization of the report, the Fire Department has provided documentation to substantiate that the withdrawal was used for the intended purpose; however, he explained that this does not substantiate the fact that the Fire Department spent more than the $31,000 approved by City Council.
Mr. Barbone explained that the Wilmington Trust Account #1305-3669 was established for use by the Fire Department to serve as a reserve fund for the repair or purchase of new equipment, along with City funds. Although the funds included in the report do not pertain to the City, he stated that the accountants were unable to locate the information when conducting the review; therefore, there is a lax in record keeping by the Fire Department. Although this concern is outside of the scope for the City, since the Fire Department is a 501-C3 tax exempt organization, they have a certain public accountability and would be encouraged to make improvements in this regard.
Responding to Mr. Salters, Mr. Barbone explained that the accountants were provided policies and procedures and were requested to determine if there were any issues that were not in concert with the policies and procedures.
Chief Carey advised members that all of the transactions mentioned in the report have been cleared and documentation has since been provided to Mr. Barbone.
Mr. McGlumphy thanked Chief Carey for his willingness to take action and for working with the Finance Department to resolve any issues. He concurred with the importance of eliminating any perception of a conflict of interest and suggested that the Fire Department take the necessary action to assure there is transparency. Mr. McGlumphy stated his hope that members of the Fire Department will continue to work with the Finance Director in a positive manner.
In reviewing the options provided in the report, Mr. Slavin suggested that the Fire Chief and Finance Director meet to develop recommendations for the committee’s review in the near future.
Mr. Hogan stated his experience with volunteer and non-profit organizations is that the quality of work varies from year to year. It was his opinion that allowing the City professionals to handle the finances involving City funds would prove beneficial to the Fire Department due to the constant change in officers.
Concurring, Mr. Leary reiterated the need for transparency and accurate bookkeeping. He relayed his appreciation for the positive manner in which this matter is being resolved.
Mr. McGlumphy moved to recommend acceptance of the Report, with the understanding that the Fire Chief and Finance Director will report back to the committee within two (2) to four (4) weeks with a set of procedures that will be beneficial to all parties involved. The motion was seconded by Dr. Jones and unanimously carried.
Amendment to Robbins Hose Company Annual Contribution in the CIP
During their meeting of February 11, 2008, members considered a request to amend the Robbins Hose Company annual contribution in the CIP of the City 2007/08 Budget, to reflect the down payment of $5,000 and ordering of replacement Engine #5. Members relayed concern regarding several issues included in the Haggerty & Haggerty Report, as well as the bid process and, although they support the Fire Department, members felt they have a responsibility and obligation to provide due diligence in this matter. The committee tabled the request based on such requests being kept within the City’s budget process, the receipt of a report within the next couple of weeks, an improved comfort with the Fire Chief’s plan for improvement, and assurance that all financial matters are handled by the City’s Finance Director. At that time, Mr. Slavin indicated that this matter would be placed on the committee’s next agenda, at which time, the Haggerty & Haggerty Report could be brought forward and the Fire Chief would be provided the opportunity to respond to those recommendations (Note previous item).
Mr. Slavin noted that, due to time constraints, this item has been placed on the Council agenda for the meeting being held later in the evening for action.
Mr. Salters moved to remove the matter from the table, seconded by Mr. McGlumphy and unanimously carried.
Staff recommended approval of the amendment to Robbins Hose Company CIP sheet of the City 2007/08 Budget, down payment of $5,000 and ordering of replacement Engine #5. Upon modification of the CIP, the equipment would be ordered. Members were reminded that the order and down payment in the amount of $5,000 must be in by February 27, 2008 to secure current prices. The estimated delivery would be in late 2008.
Mr. Salters moved for approval of staff’s recommendation, seconded by Mr. Shevock.
Mr. McGlumphy reiterated his concern with the request. He stated that, based on the information received, it was his feeling that there is an issue involving impropriety. He explained that when a member of the Fire Department who also works for a company that is a successful bidder, the use of proprietary information is questioned. Referring to the responses received from other vendors, Mr. McGlumphy relayed his concern regarding their reasons for not submitting a bid, which he felt confirms his concerns with this issue.
Responding, Chief Carey assured members that the member in question did not participate in this matter whatsoever and noted documentation received to that affect. Regarding the timing issue concerns relayed by Mr. Straus in the email provided to members, Chief Carey provided various examples of bids solicited by other fire departments that required submission of a response within a two (2) week time frame, considering the elimination of holidays, weekends, etc.; therefore, he assured members that the amount of time allowed for the bid submission was adequate. He stated that the Front Non Drive Axle in the specs (page 8) requested an “independent front suspension” not a “TAK-4 suspension” as indicated in the email from Mr. Mortka. Chief Carey reiterated his assurance that the bid specification was not referencing proprietary equipment.
Responding to Mr. Ruane, Chief Carey explained that the emails from those vendors, who chose not to submit a bid, alluded to there being only one (1) vendor who could meet the spec requirements, which is not the case. He advised members that the same spec used by the City was also used by Christiana Fire Department and that two (2) vendors submitted bids, Seagrave and Pierce. Chief Carey stated that the information contained in the emails provided to members is inaccurate and assured members that the inaccuracies can be proven.
In the spirit of cooperation and transparency and in an effort to avoid confusion or concerns in the future, Mr. Ruane suggested that the Fire Department consider meeting with vendors to clarify any questions or concerns.
The motion recommending approval of the amendment to Robbins Hose Company CIP sheet of the City 2007/08 Budget, down payment of $5,000 and ordering of replacement Engine #5 was unanimously carried.
With regards to the proposal specifications, Former Fire Chief Osika advised members that a letter was distributed indicating that all vendors were allowed to list any and/or all exceptions to their bid and that any questions could be directed at any time. He also indicated that the bid process for the Fire Department is identical to all other departments in the State of Delaware.
Status of Incentives for Downtown
There being no objections, due to time constraints and the time sensitivity of the remaining agenda items, Mr. Slavin requested that the Status of Incentives for Downtown be the last item to be considered by the committee, if time permits.
Contract with IAAO for Technical Assistance - Review, Analysis, and Evaluation of City Assessor’s Office
Mr. DePrima, City Manager, advised members that the International Association of Assessing Officers (IAAO) is the leading professional organization for tax assessors. The IAAO has a technical assistance program where retired or employed professional assessors, when available, provide technical assistance and evaluation services for local governments in need.
Mr. DePrima stated his opinion that there is a strong need for a complete review of the City Assessors Office. He explained his opinion is based on management observations, the fact that the office has had three (3) different assessors over the past eight (8) years, and a lack of standards for a number of its routine procedures. It is hoped that such an evaluation would produce recommendations that, when implemented, would allow the City to become an IAAO certified city.
Members were provided a detailed Scope of Work which included information on the IAAO and its services. Mr. DePrima noted that the contract cost is $30,500. The IAAO has proposed to assign Frederick Chmura and Wayne Trout for this work, whose qualifications were also included. He advised members that the funding for the cost of the contract would come from the money budgeted for the City Assessor’s salary. He reminded members that a “commercial appraiser” position was budgeted for this year and indicated that the position would not be filled until the Assessor position was filled. He stated that the expense would be included in the mid-year budget review.
Due to the immediate need for these services and the IAAO’s unique position as a non-profit professional organization, a Request for Proposals as called for in the purchasing policy is not recommended at this time.
Staff recommended that the City Manager be authorized to contract with IAAO to perform a Review, Analysis, and Evaluation of the City Assessor’s Office at a cost of $30,500, waiving the purchasing policy requiring a Request for Proposals.
Mr. Salters moved to recommend approval of staff’s recommendation, seconded by Mr. Shevock and unanimously carried.
Disposition of City Owned Land - Property Located at 101 Jefferson Court
Members considered a request for the disposition of City owned land for property located at 101 Jefferson Court (Tax ID# ED-05-076.07-01-140.000-000), which is an end unit townhouse located in the Presidential Courts Town Home Development in West Dover.
Mr. DePrima, City Manager, advised members that in accordance with the City of Dover Procedure for Sale and Disposition of Real Property, he evaluated the property and determined that no City departments have a need for the parcel. He also determined that changing the current zoning classification of RG-3 (Townhouse) would not enhance the value of the lot. Mr. DePrima indicated that the property was acquired by the City through a condemnation. The interior of the property was completely demolished and cleaned as a part of the condemnation effort. In accordance with the Real Property Disposal Procedure, he recommended that the City sell the property through a sealed bid with a minimum value equal to the cost of the demolition and clean up of the property.
Staff recommended the following: 1) Determine property is excess real estate; and 2) authorize the City Manager to sell the property by sealed bid at a minimum acceptable price of $75,000 after advertising in a local paper once a week for two (2) weeks.
Responding to Mr. McGlumphy, Mr. DePrima stated that in accordance with City policy, any excess funds acquired beyond the costs of the demolition and clean up of the property would be credited to the Library Reserve Fund.
Mr. Salters moved to recommend approval of staff’s recommendation, seconded by Dr. Jones and unanimously carried.
Status of Incentives for Downtown
During the Council Workshop held on November 5, 2007, members were provided a presentation of the Downtown Incentives.
Mrs. Townshend, Director of Planning and Inspections, provided members details as to the status of proposed and existing incentives to encourage redevelopment of downtown Dover. Staff recommended feedback for progressing with the proposed incentives.
Referring to the incentive to Create a Fast-track Approval Process for all Development Issues in the Downtown Target Area, Mr. Slavin requested that staff develop and present a time-line for the committee to review. He also requested that the incentive for a Case Manager for new business issues scheduled for review by City Council also be submitted to the committee for their review. He advised members that the incentive regarding the elimination of the Bid Tax for downtown Dover would be scheduled for a future meeting for the committee’s review and recommendation.
Mr. Salters moved to recommend acceptance of the Status of Incentives for Downtown Report submitted by staff, seconded by Mr. Shevock and unanimously carried.
Mr. Salters moved for adjournment, seconded by Dr. Jones and unanimously carried.
Meeting Adjourned at 7:09 P.M.
Respectfully submitted,
Timothy A. Slavin
Chairman
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