LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee Meeting was held on March 22, 2004, at 6:35 p.m., with Chairman Speed presiding. Members present were Mr. Ritter, Mr. Truitt, Mr. Gorman, and Mr. Shelton. Other members of Council present were Council President McGlumphy, Mr. Carey, Mr. Pitts, Mrs. Williams, Mr. Ruane, and Mayor Hutchison.
AGENDA ADDITIONS/DELETIONS
Mr. Gorman moved for approval of the agenda, seconded by Mr. Shelton and unanimously carried.
Proposed Budget Revision Ordinances
Mrs. Mitchell, Treasurer/Finance Director, presented the budget amendments for the Revised 2004 Budget based on the State of the Budget Report (which was presented to Council on March 8, 2004).
Responding to Mr. Gorman, referring to Section A, General Fund - Receipts - Court of Chancery Fees, Mrs. Mitchell indicated that the amount received ($480,000) was based on a percentage of the corporation fees that was collected by the State of Delaware and that the amount we received would fluctuate.
Referring to Section A. Expenditures - Street Lights ($460,000), Mr. Gorman questioned the placement of this unbudgeted expense. Mrs. Mitchell explained that it had been determined that the Street Lights were a function of the General Fund, therefore, the expenditure has been transferred from the Electric Fund to the General Fund.
Mr. DePrima explained that the amendments in the Water/Wastewater Fund were related to cool wet temperatures, which reduced water usage, which in-turn reduced water sales. Referring to Expenses - Kent County Fees, Mr. DePrima explained that the increased rainfall causes a higher water table, which causes more water to access the sewer system; therefore, the City’s fees charged by Kent County for treatment are increased. Mr. DePrima stated that sewer pipe repairs would be included in future CIP’s to reduce the amount of rain water accessing the sewer system.
Responding to Mr. Ruane, Mrs. Mitchell stated that the proposed Budget Revision Ordinances do not reflect any negotiated contract potential settlements, nor does it contain any PAS recommendations. Mr. Ruane expressed concerns with approving the budget revision ordinances without knowing pending negotiated contract settlements.
Mr. Gorman moved to recommend approval of the proposed Budget Revision Ordinances (Attachment #1), as recommended by staff. The motion was seconded by Mr. Shelton and unanimously carried.
(Note: Resulting from the Committee’s action on the next agenda item, staff will make necessary adjustments to the Budget Ordinance Amendments for the First Reading).
Bid - Assessment Software (CAMA)
Mr. Cooper, City Assessor, stated that the appraisal software that is currently used by the City’s Assessors Office is unable to meet the demands of a growing city. The software is antiquated and does not have the capability of performing basic functions. Bids were solicited as follows:
Vendor Name Bid Price Comments
Cole-Layer-Trumble Inc. $85,400 The contract requires an initial payment of $26,000. The software will be hosted on its server for an additional cost of $1,800 per month for 33 months.
Resources Technologies Corp. $65,990 Initial cost of $53,090 with an additional cost of $4,300 per year for three years for annual maintenance.
AppLogix $95,500 Initial cost is $82,500 with an additional maintenance cost of $6,500 per year for the last two years.
Sungard H.T.E. Inc. $167,740 Initial cost of $131,035 with an additional maintenance fee cost of $12,235 per year for three years.
Staff is not recommending the low bidder for the following reasons: Resource Technologies Corporation had the least amount of support staff, currently they have ten (10) staff members with one (1) member designated as the Information Technology contact and another member available for training, in addition, during the demonstration of the appraisal software the export function of the software was not effectively demonstrated and the import function (a significant function during reassessments) was lacking. It is necessary to export entire neighborhoods from the appraisal software and make corrections or changes in values and import the corrected information back into the software.
Staff recommended the second lowest bidder, Cole-Layer-Trumble (CLT), for the following reasons:
CLT’s software has the import/export functions and demonstrated that it will enable staff to make mass changes to neighborhoods.
CLT has a larger support staff (45 software support, 300 appraisal personnel, 51 software implementation personnel and 38 sales and administrative staff) available for consultation and troubleshooting around the clock.
CLT’s initial cost is the lowest and is very close to the originally budgeted $25,000. The remote hosting fee is included for the first three months in the initial payment.
CLT is hosting the software on its server, thereby requiring less staff and equipment support from the City.
CLT was our consultant during the 2001 reassessment and is familiar with our current assessment software. This should ease conversion problems.
CLT currently has assessment software in the City of Milford and the Town of Smyrna, which will create local availability.
Responding to Mr. Carey, Mr. Cooper stated that CLT will be hosting the software on their server, therefore, they are the sole owners of the software. Mr. Cooper indicated that there would be additional fees if the City wanted to host the software.
Responding to Mr. Ruane, Mr. DePrima indicated that the $60,000 included in the budget revisions for the purchase of the assessment software is not necessary should be deleted from the Proposed Budget Revision Ordinance prior to it being presented for a First Reading to City Council. An amount of $25,000 has been funded for the purchase of the Assessment Software (CAMA) as identified on Page 363 of the 2003/2004 Operating Budget and Page 94 of the CIP. Members were advised that the City Assessor had indicated a savings in his department budget to provide for the additional $1,000 needed for the initial payment in the amount of $26,000.
Mr. Ritter moved to recommend awarding the contract for mass appraisal software to the second lowest bidder, Cole-Layer-Trumble, Inc., for an initial payment of $26,000, and $1,800 per month for 33 months (total cost in the amount of $85,400), as recommended by staff. The motion was seconded by Mr. Gorman and unanimously carried.
Conservation Easement - 144 Kings Highway - Michael A. And Connie Jo Zimmerman and Memorandum of Understanding - Real Estate Tax Assessment
Mr. DePrima reported that Michael A. and Connie Jo Zimmerman have proposed dedicating a conservation easement to the City of Dover. The easement would be the lawn area of 144 Kings Highway (at the corner of Kings Highway and American Avenue). The easement would grant perpetual preservation of the area and prohibit further construction. Maintenance of the area would be retained by the Zimmerman’s or future owners of the property. Mr. DePrima indicated that the dedication of the conservation easement would not reduce the assessed value of the property. In exchange, the Zimmerman’s would be eligible for federal tax advantages. The Deputy City Solicitor has reviewed the document and requested technical changes that have been forwarded to Mr. Zimmerman for consideration.
Mr. Shelton moved to recommend the acceptance of the dedication of the conservation easement located at 144 Kings Highway, as recommended by staff (Attachment #2). The motion was seconded by Mr. Gorman and unanimously carried. (Note: Deputy City Solicitor has recommended approval of a Memorandum of Understanding for the Real Estate Tax Assessment for the property (Attachment #3).
Discussion - Charter and Code Review
Due to insufficient time, the above-mentioned item was deferred and will be placed on the April 12, 2004 Legislative and Finance Committee Agenda.
Mr. Truitt moved for adjournment, seconded by Mr. Gorman and unanimously carried.
Meeting Adjourned at 7:17 P.M.
Respectfully submitted,
Stephen R. Speed
Chairman
SRS/jg/lcg
S:ClerksOfficeAgendas&MinutesCommittee-Minutes20043-22-2004-LF&A.wpd
Attachments
Attachment #1 - Proposed Budget Revision Ordinances - Attached to Original Minutes and File Copy
Attachment #2 - Conservation Easement - Zimmerman Property
Attachment #3 - Memorandum of Understanding - Zimmerman Conservation Easement