SPECIAL COUNCIL MEETING
A Special Council Meeting was held on January 31, 2003, at 9:30 a.m., with Council President Carey presiding. Members of Council present were Mr. Ritter, Mr. Pitts, Mrs. Williams, Mr. Truitt, Mr. McGlumphy, Mr. Speed, Mr. Salters, and Mr. Ruane.
Council staff members present were Police Chief Horvath, Mr. Cooper, Mrs. Mitchell, Mr. Jorgenson, Fire Chief Bashista, Mr. DePrima, Mrs. Green, and Mayor Hutchison. Council Committee Members present were Mr. Snaman (Utility Committee) and Mr. Tolbert (Legislative and Finance Committee).
Agenda Additions/Deletions
Mr. Salters moved for approval of the agenda, seconded by Mr. Speed and unanimously carried.
Review of Draft Capital Investments Plan - Fiscal Years 2004-2008
Members received the five-year Capital Investments Plan (CIP) for Fiscal Years 2004-2008. Mr. DePrima advised members that the CIP has been enhanced to include the following:
1. The CIP is divided by funds, and one new category—Project Development—has been added. This replaces the function categories used in previous years and allows Council to relate projects to the funds. It also reduces the number of subsections, making it easier to manage.
2. The Plan uses new GASB 34 accounting procedures, several projects which were formerly Intergovernmental Fund projects have now been included in the General Fund. This makes the General Fund appear inflated over past years. Attachment “A” provides a “Pre-GASB 34” and “GASB 34” accounting of the funds.
3. A project development category has been established for projects in the concept phase. This category serves as a "bookmark" until the project has been fully scoped with respect to price, timeline, and priority.
4. A project number has been assigned to each project. This allows for better internal tracking.
5. An explanation of impact on operating budget has been added to the CIP sheets to provide an explanation of the costs or savings associated with a project.
6. The Five-Year Cost Breakdown Schedule on the CIP sheet has been revised to include more details over the five-year period. "Prior to 2004" and "After 2008" columns have also been included.
Mr. DePrima explained that the Plan recommends $14.1M in capital improvements for 2003/2004. The current 2002/2003 budget includes a total of $14.6M. In the 2002/2003 CIP, $10.2M was projected for 2003/2004. The $3.9M difference is a result of several new projects, but a majority of the increase is related to an additional $3M budgeted for the 230KV tie project. Mr. DePrima stated that in preparation of the CIP, he has already eliminated or deferred approximately $1.5M in project proposals that were requested by department heads. He advised members that once the annual budget review begins, there may be a need to further defer projects. In addition, he noted that the CIP does not reflect any financing, which may ultimately be recommended, particularly in the Electric Fund. Members were provided a presentation of the 2004/2008 CIP (Exhibit #1).
Mr. Ruane referred to page 34 of the CIP - Laptop Computers for City Council and explained the rationale for providing laptop computers for City Council and its capabilities. He assured members that it is not to simply provide laptop computers for Council but rather eliminate the massive amounts of paperwork provided to each member, every week.
Responding to Mr. Ruane, Mrs. Green, City Clerk, explained that the estimated cost for the laptops is extensive due to certain requirements specified by the Information Technology Director.
Mayor Hutchison stated that although he agrees with the concept and has seen the system used in other municipalities, he does not feel that this project should be a priority included in this year’s budget.
Mr. Ritter advised members that a similar project was recently introduced to Kent County Levy Court Commissioners and that, to his knowledge, it has been unsuccessful, with several members returning their laptops. He suggested that the City Clerk contact the Clerk for the County to discuss this matter.
After much discussion, it was suggested that the Information Technology Director and City Clerk make a presentation of this project to provide members with further details and allow for a decision prior to the budget review.
Mr. McGlumphy suggested that the City Manager be authorized to provide members with a prioritized list of FY 2003/2004 CIP Projects by delineating those projects for FY 2001/2002 and FY 2002/2003 that were not completed or were deferred and carried over. This list should include, in a prioritized manner, those projects that the City Manager and staff feel are critical. He suggested that the need be predicated on whether the City can operate with or without moving forward with the project.
Responding to Mr. Ruane, Mr. DePrima stated that the proposed CIP for FY 2003/2004 is within the projected budget expenses. He stated that at this stage, staff has submitted a proposed CIP, which is typically accepted as a report. The suggestion made by Mr. McGlumphy would provide for the projects to be included in the budget, at which time members would be provided only those projects staff felt were critical. The presentation of the CIP allows members an opportunity to obtain an explanation and a better understanding of the proposed projects.
For clarification, Mr. DePrima concurred that the revenue projections would meet the projects proposed in the CIP for FY 2003/2004 and there would be no need to cut projects at this time.
In response to Mr. Ruane, Mr. DePrima noted that the projects on page 106, West Dover Water Loop, and page 110, Southwest Water Loop, would benefit non-taxpaying citizens. Mr. Ruane requested that the City Manager and Public Works Director provide members with a detailed cost benefit analysis for those projects that would extend City services into unincorporated areas. He advised members that his support for such projects will be based on the cost benefit.
Mr. Ruane reminded members that Council supported a cost benefit study to be performed on growth that would provide the formulas necessary for staff to determine cost benefit of projects, including annexation.
Responding, Mr. Jorgenson advised members that the Request for Proposals for conducting an annexation study are currently being completed. The Dover Parking Authority has requested a similar analysis and Mr. Jorgenson plans to incorporate both for consultants to consider undertaking simultaneously. He assured members that even without the analysis, the study will include a cost benefit as a basis for the decision making process on all annexations.
Mayor Hutchison reiterated his desire for the City to look into areas for annexation, most especially for those properties currently outside of the corporate limits that receive City benefits. There has been substantial growth in the City during the past nine (9) years, which he feels will continue. The City must make necessary improvements to the water system and electric service to meet the needs of the City and at the same time, consider the costs involved.
Mr. McGlumphy moved for adjournment, seconded by Mr. Ritter and unanimously carried.
Meeting Adjourned at 10:37 A.M.
JANICE C. GREEN
CITY CLERK
All orders, ordinances, and resolutions adopted by City Council during their Special Meeting of January 31, 2003, are hereby approved.
JAMES L. HUTCHISON
MAYOR
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S:ClerksOfficeAgendas&MinutesCouncil-Minutes20031-31-2003-Special.min.wpd
Exhibit Attached to Original Minutes and File Copy
Exhibit #1 - Power Point Presentation Document