REGULAR COUNCIL MEETING
The Regular Council Meeting was held on January 22, 2007 at 7:30 p.m. with Council President Williams presiding. Council members present were Mr. Carey, Mrs. Russell, Mr. McGlumphy, Mr. Slavin, Mr. McGiffin, Mr. Hogan, Mr. Salters, and Mr. Ruane.
Council staff members present were Police Chief Horvath, Mrs. Mitchell, Mrs. Townshend, Fire Chief Osika, Mr. DePrima, Deputy City Solicitor Pepper, Mrs. McDowell, and Mayor Speed.
OPEN FORUM
The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Williams 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
Council President Williams advised members that staff requested the deletion of item #14C, First Reading of Proposed Amendment to the Comprehensive Plan - Governors Avenue, and item #15C, First Reading Rezoning Ordinance - Governors Avenue.
Mr. Carey moved for approval of the agenda, as amended, seconded by Mr. Salters and unanimously carried.
Mr. Carey moved for approval of the Consent Agenda, seconded by Mr. Salters and carried by a unanimous roll call vote.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JANUARY 8, 2007
The Minutes of the Regular Council Meeting of January 8, 2007 were unanimously approved by motion of Mr. Carey, seconded by Mr. Salters and bore the written approval of Mayor Speed.
CERTIFICATE OF APPRECIATION - BRIAN BASHISTA, FIRE CHIEF
The following Certificate of Appreciation was read into the record by the City Clerk:
WHEREAS, Brian Bashista joined the Robbins Hose Fire Company as a probationary member in November of 1993 and was made an active member in November of 1995; and
WHEREAS, he became a life member of Robbins Hose in November of 2000; and
WHEREAS, he has served on the Board of Directors for Robbins Hose and held memberships on several committees including the Apparatus and Maintenance Committee; and
WHEREAS, Brian Bashista was elected Fire Chief by the members of the Robbins Hose Fire Company in 2002, and faithfully served as Fire Chief through 2006, longer than any other Chief in the history of the Company; and
WHEREAS, during Brian Bashista's tenure as Fire Chief the Robbins Hose Fire Company responded to over 5,000 calls; purchased 10 pieces of new equipment; received a consistent ISO Rating of 4 out of a possible 5; and began construction of a new wing for the firehouse.
NOW, THEREFORE, I, STEPHEN R. SPEED, MAYOR OF THE CITY OF DOVER, DELAWARE do hereby award this Certificate of Appreciation to Brian F. Bashista this 22nd day of January, 2007 for 13 years of dedicated and faithful voluntary service to the Robbins Hose Fire Company and the City of Dover.
Mayor Speed noted many of the major events that have occurred during Chief Bashista’s tenure and the outstanding manner in which they were handled.
Former Chief Bashista thanked the officers and firemen of Robbins Hose Company and the members of City Council for their support.
CERTIFICATE OF APPRECIATION - SHEILA ANDERSON, LIBRARY DIRECTOR
The following Certificate of Appreciation was read into the record by the City Clerk:
WHEREAS, Sheila Anderson joined the City of Dover as Library Director in August of 2001; and
WHEREAS, during her tenure as Library Director, Sheila Anderson upgraded the online public access catalog, and more than doubled the number of public access computers; and
WHEREAS, Sheila Anderson was responsible for making the overall appearance of the library more aesthetically pleasing and ensuring the safety of patrons by having security cameras installed; and
WHEREAS, Sheila Anderson was instrumental in bringing the first Consumer Health Librarian to the Dover Public Library in cooperation with the Delaware Academy of Medicine; and
WHEREAS, Sheila Anderson created a separate area for teens and developed a teen collection to make the library more appealing to teenaged patrons, and significantly increased the library's overall materials collection.
NOW, THEREFORE, I, STEPHEN R. SPEED, MAYOR OF THE CITY OF DOVER, DELAWARE do hereby award this Certificate of Appreciation to Sheila Anderson this 22nd day of January, 2007 for faithfully serving as Library Director at the City of Dover Public Library.
Mayor Speed noted that, in addition to the many accomplishments listed, Ms. Anderson has also been a driving factor in conducting the assessment for the new library.
Ms. Anderson thanked members for their support, particularly Mr. Ruane, who is quite passionate about the Dover Public Library.
Mr. Ruane advised members that Ms. Anderson is the author of three (3) books and she participates in the Children’s Book Council at the national level. He felt that Dover has received much more attention and understanding because of her representation.
PRESENTATION - SURVEY RESULTS - SPRING AND SUMMER PERFORMING ARTS AND SOFTBALL LEAGUES
Mr. Zachary Carter, Director of Parks and Recreation, provided a PowerPoint presentation of the Survey Results for the Spring and Summer Performing Arts and Softball Leagues (Exhibit #1). He noted that the results would be used to enhance their programs and address areas of concern expressed by the participants.
REQUEST TO WITHDRAW ANNEXATION APPLICATION - PROPERTY LOCATED AT 1889 KENTON ROAD, CONTAINING .50+/- ACRES, OWNED BY BRIAN L. AND WILLIAM A. BRIGHT
Council President Williams advised members that staff received a request to withdraw the annexation application for property located at 1889 Kenton Road (Exhibit #2).
Mr. Salters moved for approval of the request to withdraw the annexation application for property located at 1889 Kenton Road, owned by Brian L. and William A. Bright. The motion was seconded by Mr. McGlumphy and unanimously carried.
UTILITY COMMITTEE REPORT - JANUARY 8, 2007
The Utility Committee met on January 8, 2007 with Chairman Carey presiding.
Annexation Request - 1044 and 1050 South State Street, Owned by 1050 South State, LLC
Members were provided the Petitions to Annex and Zone Property and a Cost/Revenue Analysis Summary for properties located at 1044 and 1050 South State Street, owned by 1050 South State, LLC.
Mrs. Townshend, City Planner, advised members that it has been determined that electric and water service is available for these properties and is currently in place. Although the sanitary sewer service is available, the applicant will need to obtain an easement from the property owned by N/F Center for Neurology Properties, LLC, in order to extend a sewer lateral from the City’s main to these properties. The owner/developer will be responsible for all costs associated with extending sewer service to the properties. Mrs. Townshend stated that the Cost-Revenue analysis showed a positive cash flow to the City over ten years of approximately $6,398 for 1044 South State Street and $8,449 for 1050 South State Street.
The committee recommended adoption of the Resolution setting the date of the Annexation Referendum to be held on February 15, 2007 for properties located at 1044 and 1050 South State Street.
By consent agenda, Mr. Carey moved for approval of the committee’s recommendation. The motion was seconded by Mr. Salters and, by a unanimous roll call vote, Council adopted the following Resolution:
A RESOLUTION PROPOSING THE INCLUSION OF AN AREA WITHIN THE LIMITS OF THE CITY OF DOVER AND CALLING FOR A SPECIAL ELECTION TO BE HELD IN THE SAID AREA.
WHEREAS, the Charter of the City of Dover authorizes Council to extend the boundaries of the said City after a special election of the qualified voters and real estate owners of the territory proposed to be annexed, and
WHEREAS, the Mayor and Council of the City of Dover deem it in the best interest of the City of Dover to include properties located at 1044 and 1050 South State Street, which is contiguous to the present City limits, into the limits of the City of Dover and within a zoning classification as recommended by the City of Dover Planning Commission.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. That a special election be held for properties located at 1044 and 1050 South State Street situated in East Dover Hundred, Kent County, State of Delaware.
2. That the election be held on the 15th day of February, 2007 commencing at the hours of 11:00 a.m. in the City Hall Annex, 15 E. Loockerman Street, Dover, Delaware, for the purpose of submitting the question of annexation of the above area to those persons entitled to vote thereon.
3. That the election be held and conducted pursuant to the provisions of the Charter of the City of Dover as amended.
4. That this resolution be published in accordance with the City of Dover Charter.
ADOPTED: JANUARY 22, 2007
Green Energy Grant Limits and Regulations (Deferred during 12/11/2006 Meeting)
Mrs. Tieman, Senior City Administrator, reminded members that in the summer of 2005, the State of Delaware issued a Renewable Energy Portfolio Standard (Delaware Code, Title 26, Chapter 1, Section 351-363). She stated that Section 363, Special Provisions for Municipal Electric Companies and Rural Electric Cooperative provides for exemptions from the standard. The City has followed the four (4) steps to be completed and has developed proposed green energy grant limits and regulations (subsection 4) to meet the requirements effective January 1, 2007. In order to fulfill Subsection 4, Mrs. Tieman indicated that the City must have green energy grant limits and regulations in place.
Staff recommended adoption of the Municipal Utilities’ Green Energy Fund Program developed by the Delaware Municipal Electric Corporation (DEMEC). The regulations and grant limits will allow the City to provide comparable grant limits and regulations to most other municipal and investor owned utilities within Delaware. The limits proposed are equivalent to Delaware Electric Cooperative.
Responding to Mr. Ruane, Mrs. Tieman explained that the program will be administered through the Delaware Energy Office, which is why the document is worded generically rather than specific to the City of Dover. She stated that the City’s funding is collected through the Green Energy Rate adopted in July and that the funds are sent to DEMEC to be held in trust until disbursements are approved by the Delaware Energy Office.
Noting that the document references municipal codes, Mr. Ruane questioned if the Dover Code has been reviewed to determine if it accounts for this type of technology and application. He suggested that the appropriate City official review the relevant sections of the Dover Code to ascertain whether in fact this technology has been taken into account or whether provisions or revisions are necessary to be included in the Dover Code.
Mayor Speed noted that the fourth paragraph of Section 4.5, Claim for and Distribution of Green Energy Program Grants, should be amended by changing the two instances of “twenty-five percent (25%)” to fifty percent (50%).
The committee recommended acceptance of staff’s recommendation for adoption of the Municipal Utilities’ Green Energy Fund Program caps and regulations as presented, with the revisions noted by Mr. Ruane and Mayor Speed, and that the effective date be January 1, 2007.
By consent agenda, Mr. Carey moved for adoption of the Municipal Utilities’ Green Energy Fund Program Caps and Regulations (Exhibit #3), as recommended by the committee. The motion was seconded by Mr. Salters and carried by a unanimous roll call vote.
Brown Water Financial Update/Water Quality Expense Report
Mrs. Duca, Assistant City Engineer, distributed and reviewed the Brown Water Financial Update/Water Quality Expense Report, which represents a consolidation of expenses that have occurred during the past six (6) years, since water quality concerns and brown water problems began occurring.
Mr. Slavin relayed frustration in receiving information at the last minute that members are expected to analyze, understand, question, and convey knowledge of, particularly matters that involve the expenditure of public monies.
The committee tabled the issue and recommended that the matter be brought back at the next committee meeting to allow members the opportunity to analyze the material and present questions; and that in the future, items that appear on the agenda include backup material with the packet otherwise the matter will be tabled.
Schoolview Pump Station
Mr. DePrima advised members that many residents of the Schoolview Development have expressed concern regarding how adjacent development will impact both storm water and sanitary sewers in their area. As a result, on December 8, 2006, he sent a letter to all homeowners in the development which answered all of the questions that had been asked by the residents. Mr. DePrima noted that he has not heard any further complaints regarding the situation.
Mr. Carey explained that the intent of having this matter presented to the committee is to make this issue a part of the record.
For record purposes, Mr. Ruane requested that the letter dated December 8, 2006 sent to individuals involved in this particular situation, as referenced by Mr. DePrima, be included as an attachment to the committee minutes.
The committee recommended acceptance of the report provided on the Schoolview Pump Station and the inclusion of the letter dated December 8, 2006 sent to nearby residents.
By consent agenda, Mr. Carey moved for approval of the committee’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
PACE/NAES Monthly Report (November)
Mr. DePrima provided the PACE/NAES Monthly Report for November 2006.
Mr. Carey explained that by reviewing this report each month, it will provide members the opportunity to monitor what is being sold in electric and the revenues received, allow members to have a better understanding of any fluctuations, and make improvements to the situation.
Mr. Ruane noted that on page 4, there is a reference to $350,000 gross margin loss and requested an explanation. Responding, Mr. DePrima stated that this is a new situation for the City and that the 69kV project has been planned for years, which is a City-wide system improvement. For further clarification, Mr. Lunt, Public Utilities Director, explained that this was previously included in the Duke Contract. Once the contract changed over in July, that is no longer the case. Since the City took over the operations of the plant, it is now the City’s expense. He advised members that in the future, it will be included in the City’s budget.
Mr. McGlumphy indicated that although he understands the $350,000 is project related, he noted that there is a highlighted note indicating that soft market conditions due to mild weather preclude, and questioned that since the City has experienced mild weather conditions, and the City operates on a series of assumptions, it seems that the mild weather is working against us. He requested that the committee consider recommending that staff develop a monthly report to allow the City to prepare our citizens for what is coming in the future by keeping on top of such issues and by keeping the public informed.
Responding, Mr. DePrima explained that although the weather can negatively affect the City’s revenues, at the same time, it has a positive affect on the City’s expenses. He assured members that the $350,000 loss is a direct result of the CIP project as previously explained.
Evaluation of Bids - Lebanon Transformer
Members were advised that the existing Lebanon Substation transformer is 35 years old and has exceeded its 30 year life expectancy. In addition, since the City is now responsible for supplying Dover Air Base Housing (DABH) at distribution voltage, the existing transformer is not capable of carrying the additional load, which will require a shift load to adjacent substations in order to avoid overloading the existing transformer. The current transformer’s capacity is 12 MVA and will be replaced with a 33 MVA transformer to carry future projected load growth. Members were also advised that the current Lebanon Substation transformer cannot be used as a backup for the Danner Farm, Horsepond, Mid-City, or Mayfair substations because of the size constraints, which ultimately affect system security/reliability.
Staff recommended awarding the bid to the lowest responsible transformer bidder, Hughes Utilities, Ltd./NPX, in the amount of $761,850. Mr. Lunt, Public Utilities Director, explained that a payment of 10% is required when placing the transformer order and that an additional 20% is required upon approval drawing submission for a total expenditure of $213,900, which is reflected in the 2006-2007 budget. These payments are required from the manufacturers before they will begin manufacturing the transformer. Since the project costs were underestimated in the 2006-2007 Capital Investments Plan, staff recommended that the remaining cost of the transformer, in the amount of $547,950, and an additional $90,000, which includes an engineering estimate for material, construction, installation, and removal of equipment, be reflected in the 2007-2008 CIP ($637,590) for a total two (2) year project cost of $851,850.
It is estimated that delivery of the transformer will occur 56 weeks after placing the order and that the City would take possession of the transformer during the 2007-2008 budget. Once received, staff will install the new transformer prior to the summer load of 2008.
Responding to Mr. Ruane, Mr. Lunt explained that delivery time was estimated at 5-7 months, which used to be the case; however, due to the demands from the industry, delivery time has been extended to 56 weeks. If this information was known, he felt that staff would have brought this purchase forward prior to this time.
Mr. Ruane alluded to the bids being presented to members at this meeting and requested that staff be requested to present an update on the CIP at the next committee meeting. He noted that both this and the next item are changing the time-line on certain projects and relayed concern with there being changes to other items in the CIP.
The committee recommended that at the next meeting, the Public Utilities Director provide members with an updated CIP, which should take into account these two (2) projects and others that may be affected by the financial challenge that the department is facing.
By consent agenda, Mr. Carey moved for approval of the committee’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
The committee recommended approval of staff’s recommendation to award the bid to Hughes Utilities, Ltd./NPX, in the amount of $761,850 for the purchase of a 33 MVA transformer for the Lebanon Substation.
By consent agenda, Mr. Carey moved for approval of the committee’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
Evaluation of Bids - Mayfair Substation Structural Steel, Equipment, and Material
Members were advised that the final material phase for the 22kV to 69kV conversion of the Mayfair Substation is the purchase of the equipment package. This project is scheduled to be completed in the summer of 2008. The equipment package, which is made up of mostly steel and copper products, is priced $28,360 higher than the budgeted amount ($167,465) due to the escalation of metal prices.
Staff recommended that the bid be awarded to the substantially compliant low bidder, Dis-Tran Packaged Sub-Stations, LLC, in the amount of $196,095. Mr. Lunt, Public Utilities Director, explained that the shortfall, in the amount of $38,000, will be transferred from the 2006-2007 CIP (Page 234 System Operations Automation - 487-8300563-40-25). Although Dover intended to fund this project, the equipment was purchased by Duke through the Dover/Duke Engineering services clause of the agreement. This transfer will bring the overall budget amount of 2006-2007 to $205,465 for this project and will cover the cost of structural steel, equipment, and foundation work. Although it is the intent of the City to take delivery of the package in the 2006-2007 budget year, there is a high possibility that all of the equipment will not be delivered in time since there is a 24-26 week final delivery schedule. If this occurs, the remaining funds for the 2006-2007 year will be transferred into the 2007-2008 budget year.
Responding to Mr. Ruane, Mr. Lunt indicated that the completion date is anticipated to occur during the first quarter of 2008 for this project. Mr. Lunt clarified that this bid provides for the final materials necessary for this project’s completion; however, there will be additional labor fees, estimated at $60,000, for the installation of the equipment.
The committee recommended approval of staff’s recommendation to award the bid to Dis-Tran Packaged Sub-Stations, LLC, in the amount of $196,095 for the purchase of the equipment package for the 22kV to 69kV conversion of the Mayfair Substation.
By consent agenda, Mr. Carey moved for approval of the committee’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
By consent agenda, Mr. Carey moved for acceptance of the Utility Committee Report, seconded by Mr. Salters and carried by a unanimous roll call vote.
LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - JANUARY 8, 2007
The Legislative, Finance, and Administration Committee met on January 8, 2007 with Chairman Salters presiding.
Proposed Funding Improvement and Loan Payoff - Robbins Hose Company
Members were advised that the City makes a $60,000 appropriation to the Robbins Hose Company each year for the original mortgage on Fire Station 2. In accordance with the Memorandum of Agreement dated December 27, 2001, a copy of which members were provided, it was agreed that any excess funds created by a decrease in interest rates would be applied to the principle.
Currently, the Robbins Hose Company has approximately $165,000 accumulated in funds set aside in an early payment account due to lower interest rates. The remaining principal payment is $167,000. The Robbins Hose Company requested authorization to spend $31,000 from the accumulated funds in order to replace the flooring in the building and upgrade it with the installation of security doors. The remaining $134,000 would be used for principal repayment, and the final payment will be made in FY 2007/2008.
Mrs. Mitchell, Treasurer/Finance Director, stated that in future budgets, staff is proposing to change over from an annual contribution for loans to budgeting for the actual payments on the apparatus loans. The payments will then be made directly by the City to the applicable financial institution. She provided members with a revised CIP for the City’s Annual Contribution to Robbins Hose Company (page 134) for the major fire apparatus replacement plan and the annual mortgage payment for Station #2. She assured members that this has been discussed with Fire Chief Osika and he concurs with the recommendation.
Staff recommended amending the “Annual Contribution to Robbins Hose Company” CIP as requested and allow Robbins Hose Company to use $31,000 of the $165,000 in excess funds to pay for flooring improvements and installation of security doors, provided that the remaining $134,000 be used to pay down the principal on Fire Station #2.
In response to Mr. Hogan, Mrs. Mitchell explained that making payments directly to the financial institution(s) will alleviate discrepancies. She also stated that, although it is understandable why such an agreement was made, she prefers that any funding be accomplished through the budget process rather than a long-term agreement. By having it included as an annual appropriation, it would be included based on the availability of City funds.
The committee recommended the following: 1) approval of the amendment to the Annual Contribution to Robbins Hose Company CIP as requested and allow Robbins Hose Company to use $31,000 of the $165,000 in excess funds to pay for flooring improvements and installation of security doors provided that the remaining $134,000 be used to pay down the principal on Fire Station #2; 2) that in future budgets, staff change over to a system where annual contribution loans are budgeted and made a part of the budget process; 3) that staff be directed to submit a report on the Memorandum of Understanding and its status to determine what was completed; and 4) that staff be directed to submit a report on the completion of paying the $134,000 principal.
By consent agenda, Mr. Carey moved for approval of the committee’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
Information Technology Emergency Plan Equipment Purchase
Mr. Callan, Information Technology Director, reminded members that, in 2005, a study was conducted for emergency recovery for IT services provided to the City. In June 2006, the first recommendations from the study were presented to and approved by Council. Approval was also required by the Delaware Emergency Management Agency (DEMA). After rejection for reimbursement of the initial I/T Emergency Plan to hire a third party with a comprehensive disaster recovery site, the I/T Department approached DEMA with a modified proposal to purchase its own LAN equipment to begin the establishment of an emergency secondary data center. The I/T Department has received approval for a grant through DEMA to purchase computer equipment to be used to reconstruct the City’s network in the event of a disaster that compromises the City’s existing equipment.
Staff recommended authorization to proceed with the equipment purchase pending DEMA confirmation, as follows:
|
ITEM |
QUANTITY |
PRICE EACH |
EXTENDED PRICE |
STATE CONTRACT VENDOR |
|
Rack - Dell PowerEdge 4210 Cabinet, 42U, 12 Amp Power Strip (x2) |
1 |
$958.66 |
$958.66 |
Dell |
|
UPS - APC SmartUPS 5000VA w/208v to 120v step-down transformer, 192 V battery packs (x3), warranty |
1 |
$6,639.16 |
$6,639.16 |
Dell |
|
Rack Console w/8port KVM, warranty |
1 |
$2,116.22 |
$2,116.22 |
Dell |
|
Cisco C3560 48 port switch, warranty |
1 |
$4,712.99 |
$4,712.99 |
Dell |
|
Servers - Dell PowerEdge 2950, 2.0GHz dual core xeon processor, 4GB RAM, 2-36GB HDD RAID-1, 3-146GB HDD RAID-5, warranty |
7 |
$6,777.18 |
$47,440.26 |
Dell |
|
Tape Drives - Rack mounted dual LTO-3 tape drives, warranty |
1 |
$5,805.37 |
$5,805.37 |
Dell |
|
Firewall - Cisco Pix 515E, warranty |
1 |
$2,457.00 |
$2,457.00 |
Insight |
|
TOTAL |
|
|
$70,129.66 |
|
Mr. Callan explained that since all the equipment specified is under State contract, no competitive bid process is required. Equipment will be purchased from State-approved vendors (Dell Computers and Insight Public Sector). In addition, this project will be funded by a $100,000 State Grant (through DEMA). The I/T Department anticipates additional small purchases as the City establishes a secondary data center and recommended that the I/T Director be authorized to purchase additional equipment as necessary, subject to DEMA pre-approval prior to requisitioning and within the City’s purchasing policy.
Responding to Mr. Slavin, Mr. Callan indicated that no definite location has been selected for the emergency secondary data center. He assured members that he is aware of the issues involved with locating disaster recovery sites close to a potential disaster site, such as railroads.
The committee recommended approval of staff’s recommendation to proceed with the equipment purchase pending DEMA confirmation.
By consent agenda, Mr. Carey moved for approval of the committee’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
Review of Monthly Budget Report - Electric Revenue Fund (Power Supply & Generation Cost)
Mrs. Mitchell advised members that the monthly budget report for the Electric Revenue Fund has been reformatted to highlight the power supply and generation cost per megawatt hour as a comparison to the budgeted cost per megawatt hour. She explained that these changes are being made to assist members of Council in tracking budget variances.
Mrs. Mitchell reviewed the analysis so that members would be able to better understand the monthly budget reports when presented for acceptance. She noted that the exhibit provided is for the power supply and generation costs analysis only.
Mr. McGlumphy requested that staff simplify the report to allow for a better understanding by the public.
The committee recommended acceptance of the report as presented.
By consent agenda, Mr. Carey moved for approval of the committee’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
Proposed Budget Amendments - Budget Balances, Encumbrances, and Project Carry-Forwards
Mrs. Mitchell, Treasurer/Finance Director, presented proposed budget amendments. In order to assist members, she also provided details regarding changes in certain line items that were included in the amendments, as well as a summary of the Capital Project and encumbrance carry forward balances from FY 2006. She explained that the budget balances are adjusted to reflect the actual balances based on the audit. The differences between the earlier reported balances are related to adjustments in accrued revenues and expenses.
In reviewing the material, Mrs. Mitchell noted that she discovered that the Library Reserve has not been included in the budget ordinances that were submitted; however, she stated that this will be corrected for the First Reading when presented to Council. She also advised members that the General Fund budget balance, because of accrual adjustments made at year-end in expenses and revenues, actually came up $95,937 higher than originally budgeted. This amount has been put into the Library Reserves, in accordance with the direction provided during the budget meetings, which directed that any excess carry-forward balance in the General Fund be put into Library Reserves.
The committee recommended approval of the proposed Budget Revision Ordinances, as recommended by staff.
By consent agenda, Mr. Carey moved for approval of the committee’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote. (The First Reading of the ordinances will take place during the latter part of the meeting).
Finance Department Re-alignment of Duties
Mrs. Mitchell, Treasurer/Finance Director, submitted a request for department re-alignment and personnel change for the Finance Department. She explained that in order to segregate the duties of the Finance Department into cash management/internal control functions and accounting/reporting functions, it would be necessary to realign the responsibilities within the Finance Department personnel. It was her opinion that the changes would improve the focus on internal controls and efficiency within the department with two (2) top supervisors. She provided a proposed organizational chart depicting the re-alignment. Mrs. Mitchell also alluded to the audit letter submitted by Faw Casson and Company, dated October 2003, which recommended that the Finance Director assess the staffing needs of the accounting department and plan for increased capacity through hiring or reorganizing the current responsibilities.
Mrs. Mitchell explained that the cash management and internal control functions would be handled by the Assistant Finance Director who would be responsible for payroll, accounts payable, investment reporting, banking activities, debt issuance, internal control procedures, preparation of RFP’s, and daily cash transactions. Responsibilities would also include direct contact with financial advisors, bond counsel, and bankers. This position would still be responsible for overseeing the department in the absence of the Director.
Mrs. Mitchell explained that the financial accounting and reporting would be handled by the Financial Reporting and Accounting Manager, who would be responsible for general accounting, fixed assets and project accounting, grant reporting, accounting procedures, monthly budget reporting, and the Comprehensive Annual Financial Report. Responsibilities would also include, but not be limited to, having a direct working relationship with other City managerial staff, actuaries, and auditors.
Mrs. Mitchell assured members that the re-alignment can be accomplished under the current budget with the savings realized through staff retention. The proposal would include promoting the current Senior Accountant to assume the role of Financial Reporting and Accounting Manager. She stated that the present Labor Grade is 121 and by using the PFP system, the revised Labor Grade would be 125 with a starting market rate of $58,600 annually, an increase of $8,703. This increase is supported by the promotion formula of the PFP system which provides this employee partial credit for past experience. They will also assume supervisory responsibilities of the other two (2) accountants.
Referring to the audit letter submitted by Faw Casson and Company, Mr. McGlumphy questioned if all of the recommendations have been implemented. Responding, Mrs. Mitchell stated that most recommendations have been implemented. With regards to the fraud assessment recommendations, she stated that the re-alignment of her department will allow for those recommendations to be implemented. With reference to the recommendation for the establishment of an Audit Committee, she explained that the auditors meet and report on the Comprehensive Annual Finance Report to the Legislative, Finance, and Administration Committee. Mr. McGlumphy suggested that members give serious consideration to the establishment of an Audit Committee and that if Council chooses to form such a committee, he felt it should be independent from the Legislative, Finance, and Administration Committee, whose members would not have a vested interest. Mrs. Mitchell explained that the recommendation regarding the Fixed Asset will be a part of the internal control assessment. She also noted that the recommendation included in the Accounting Team regarding monthly meetings had been implemented; however, she is in the process of changing them to weekly meetings.
The committee recommended approval of the proposed department re-alignment and personnel change, as requested by staff.
By consent agenda, Mr. Carey moved for approval of the committee’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote.
Expansion of Voluntary Curbside Recycling Supported by Dover
In October 2005, the City of Dover began offering voluntary curbside recycling to its citizens through the Delaware Solid Waste Authority (DSWA). Mrs. Tieman, Senior City Administrator, advised members that there has been significant success with this program over the past year. To date, over 575 City residents are enrolled in the program, with over 50% participating weekly. There is an average of 25 pounds per week and a cumulative average of approximately 7,512 pounds of recyclables per week.
As a result of its success, City staff and the DSWA would like to expand this program to other citizens of Dover so that residents of all economic strata would benefit. The DSWA has offered the City a proposal for pickup on an every other week basis since it does not appear that weekly pickups are needed. The DSWA would charge the City $2 per household enrolled per month for this service. This arrangement is similar to what the City of Milford does except that Dover’s program would be structured for citizens who want to voluntarily enroll and not for every citizen to be enrolled automatically. This means Dover only pays for citizens who enroll.
The program would be principally funded from savings which result in diverting recyclables from the landfill. The calculation is based on the City’s October 2006 results as follows:
• Average pounds of recycling from Dover customers annually = 676 (13 lbs./week x 52 weeks)
• Estimated number of customers participating in the su