LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on July 16, 2007, at 4:30 p.m. with Chairman Slavin presiding. Members present were Mr. Salters (arrived at 4:38 p.m.), Mr. McGlumphy, Mr. Shevock, and Mrs. Jones. Members of Council present were Mr. Carey and Mr. Hogan.
AGENDA ADDITIONS/DELETIONS
Mr. McGlumphy moved for approval of the agenda, seconded by Mrs. Jones and unanimously carried.
Presentation - Mortgage Foreclosure Filings in Delaware (Gerard W. Kelly, Deputy Bank Commissioner for Consumer Affairs, State Bank Commissioner's Office)
Mr. Gerard W. Kelly, Deputy Bank Commissioner for Consumer Affairs, provided mortgage foreclosure statistics for Kent County, Delaware. He noted that there were 475 mortgage foreclosures in Kent County last year compared with 349 in 2006.
Mr. Kelly reviewed the Delaware Foreclosure Timeline, which is a nine (9) or ten (10) month process. He advised members of the State’s Delaware Emergency Mortgage Assistance Program (DEMAP), which will assist homeowners who are two (2) months behind in their mortgage payments by lending them up to $15,000 if they are in foreclosure through no fault of their own. DEMAP currently has funding in the amount of $650,000 for the program.
Mr. Kelly provided a sub-prime snapshot, information on DEMAP, and the refinance program (Attachment #1). He also provided information on the 10 Ways to Avoid Foreclosure (Attachment #2). Mr. Kelly noted that one of the best ways to avoid foreclosure is by having a home inspection done prior to purchasing a property so that unnecessary future expenses can be avoided.
Responding to Mr. Slavin, Mr. Kelly stated that the City could help by encouraging citizens to attend the informational meetings being provided by the State, sponsoring meetings in the community, and making citizens aware of the options available to them to avoid foreclosure.
Proposed Ordinance - Chapter 22 - Buildings and Building Regulations, Article X - Rental Dwellings, Division 2 - Permit, Section 22-351 - Generally (Rental Permit Fees)
City Council has placed a high priority on proactive code enforcement. The Department of Planning and Inspections has a property maintenance inspection staff which is charged with code enforcement. One of the responsibilities of this staff is performing annual housing inspections (AHIs) of rental properties in the City. These inspections are key to proactive code enforcement, as they address both exterior property maintenance issues and interior code issues; however, they require a great deal of inspection staff time. Frequently, AHIs reveal significant code violations that affect the health and safety of occupants of rental properties, including lack of smoke detectors, plumbing violations, broken windows, exposed wiring, open electrical outlets, and unsanitary conditions.
In order to effectively provide proactive code enforcement and successfully implement the AHI program, the Department needs to add an additional property maintenance inspector. The increase in rental permit fees is proposed to fund this new position. Because there is a direct correlation to code enforcement staff hours and rental permits, the fee increase is appropriate for this purpose. The fees within the program have not been raised since initially implemented in 2000.
Mrs. Ann Marie Townshend, Director of Planning and Inspections, reviewed a proposed ordinance amending Chapter 22 - Buildings and Building Regulations, Article X - Rental Dwellings, Division 2 - Permit, Section 22-351 - Generally, which would increase rental permits for single-family dwellings from $90 to $120 for each single-family detached rental dwelling and increase the permit for each single-family attached dwelling from $70 to $90. The ordinance would also increase the rental permits for multiple-family dwellings from $90 to $100 for multiple dwellings consisting of three or less dwelling units; increase from $90 to $100 for the first three dwelling units of a multiple dwelling with four or more dwelling units; and increase from $30 to $50 for each additional dwelling unit in excess of three. The fee for condominium units and accessory apartments located within structures principally used for owner occupancy is proposed to increase from $30 to $50.
Responding to Mrs. Jones, Mrs. Townshend stated that the projected amount that would be generated by the fee increase, based on the 2006 rental permits, would be $101,000. She noted that the cost for the additional inspector would be approximately $64,000 for the salary and benefits. Noting that the City received an additional $100,000 in realty transfer taxes, Mr. McGlumphy stated that it was difficult to believe that the City could not find funds in the budget to pay for the inspector without increasing fees. Mr. Slavin requested that an updated realty transfer tax figure be provided prior to the First Reading of the ordinance.
Mr. McGlumphy asked how the proposed fees compared with other local municipalities. Mrs. Townshend noted that it was hard to compare since many municipalities do not charge rental permit fees, nor do they practice strong, proactive code enforcement. Mr. Salters stated that he thought increasing the associated fees was an appropriate way to fund the new inspector’s position.
Mrs. Townshend advised members that she sent the proposed ordinance to the Delaware Association of Realtors. They responded that they had some questions; however, they have not contacted her again. Mr. Slavin requested that a public hearing be held prior to adoption of the ordinance.
Mr. Salters moved to recommend adoption of the proposed ordinance amending Chapter 22-Buildings and Building Regulations, Article X-Rental Dwellings, Division 2-Permit, Section 22-351-Generally (Attachment #3). The motion was seconded by Mr. Shevock and carried with Mr. McGlumphy voting no.
Capital and Caesar Rodney School District Liaison Committee
Mr. Slavin reminded members that the City of Dover provides streets, electric, water, wastewater, traffic control, and police and fire protection within the school districts. Noting that there is very little formal dialogue with the districts, he suggested that a liaison committee consisting of two (2) members each be established. Mr. Slavin recommended that the non-voting committee be advisory in nature for the purpose of communicating issues between the City and the Districts without taking a stand on referendums, taxes, rates, etc. He noted that once established, the committee could be expanded to include charter and private schools, as well as colleges and universities.
As a former School Board member, Mr. Hogan stated that communication between the groups would be a tremendous information tool for everyone involved.
Responding to Mrs. Jones, Mr. Slavin stated that items for discussion could be how the Capital School District’s Master Plan, which includes adding grades to schools, would impact neighborhood schools, traffic, parking, or police service. It would also make the City aware of any other issues that would need to be addressed. Noting that Capital School District is planning the addition of relocatable classrooms at North Dover Elementary, Mr. Slavin suggested that the committee could foster communications between the district and the Department of Planning and Inspections, which would issue the permits, perform the inspections, etc.
Mr. Salters moved to recommend establishing an Education Liaison Committee to include public, private, and charter educational institutions, consisting of two (2) non-voting, non-binding, members from each participating group. The committee is to be advisory in nature for the purpose of communicating issues between the City and the educational institutions. The motion was seconded by Mrs. Jones and unanimously carried.
Addition of Third Council Meeting per Month
Noting the difficulty in scheduling special meetings and the need for Council members to consider certain issues in greater detail, Mr. Slavin proposed the addition of a third Council meeting to be held on the first Monday of each month. He suggested that they could be workshop type, non-mandatory meetings, meaning they would not be scheduled unless there were agenda items to discuss. Mr. Slavin recommended that no action be taken during the meetings until arrangements could be made with Comcast to televise the meetings.
Mr. Salters stated that there are an extraordinary number of meetings already and expressed concern with having additional informational meetings. Mr. Slavin noted that 33 special meetings have been held since January 2006, 20 of which were held on non-council meeting nights. Mr. McGlumphy noted that 29 of the 33 meetings were executive sessions and the addition of a third meeting would not reduce the number of meetings held. Mr. Slavin suggested that any necessary executive sessions could also be held on the first Monday of the month. Mr. Hogan stated that he has no problem with scheduled meetings, it’s the unplanned meetings that are more difficult to attend. Mr. Hogan stated that he liked the idea of a scheduled third meeting and suggested that they be specific to certain items such as planning and zoning issues, rezonings, annexations, and other items requiring public hearings.
Mr. McGlumphy moved to recommend the addition of a third Council meeting, to be held the first Monday of the month, for the purposes of setting aside a specific date that will help to streamline Council’s calendars and to present an opportunity to discuss issues in a more orderly manner. No action will be taken during these meetings until such time as arrangements can be made with Comcast to televise the meetings. The motion was seconded by Mr. Shevock and carried with Mr. Salters abstaining.
Mr. McGlumphy moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 5:43 P.M.
Respectfully submitted,
Timothy A. Slavin
Chairman
TAS/tam
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Attachments
Attachment #1 - Outline - Sub-prime Snapshot, DEMAP, and Refinance Program (Original Minutes and File Copy)
Attachment #2 - 10 Ways to Avoid Foreclosure (Original Minutes and File Copy)
Attachment #3 - Proposed Ordinance Amendment - Chapter 22 - Buildings and Building Regulations