COUNCIL COMMITTEES
The Council Committees Meeting was held on January 13, 2003, at 5:38 p.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, Mr. Ruane, and Mayor Hutchison.
AGENDA ADDITIONS/DELETIONS
Mr. Salters requested the addition of Legislative and Finance Committee Item #3 - Council Executive Sessions. He also requested that items #1 and #2 be reversed due to citizens being present for item #2- Fox Hall Drive Water and Sewer Connection Fees.
Mr. Ruane requested that the Utility Committee convene prior to the Legislative and Finance Committee meeting since there was only one brief item.
Mr. McGlumphy moved for approval of the agenda, as amended, seconded by Mrs. Williams and unanimously carried.
UTILITY COMMITTEE
The Utility Committee met with Mr. Ruane presiding. Members present were Mr. Ritter, Mr. Speed, Mr. Lambert, and Mr. Snaman.
Request for Alley Abandonments - Located Between North Governors Avenue and North Bradford Street and Division Street: 1) Alley Running East/West (Paper); and 2) Alley Running North/South (Applicants: Wesley College, Conmal Investments LLC, and Zimmal Properties LLC)
The two subject alleys are located within the block between North Governors Avenue and North Bradford Street and north of Division Street. Alley #1 takes access from North Governors Avenue and continues east to mid-block. Alley #2 takes access from Division Street and continues north.
The Site Plan proposes construction of a dormitory building consisting of forty-eight (48) units and a two-level parking garage. The property consists of multiple parcels located on the east side of North Governors Avenue and north of Division Street. These parcels will be consolidated under a single ownership. The applicants submitted a request to have the two alleys abandoned so that the land could be further consolidated for project development. Under the plan, the land associated with these two alleys will remain open for circulation and emergency vehicle access and access to the parking areas. It was also noted that a City of Dover water line is located in the alley running from Division Street to Fulton Street and the developer agreed to grant an easement for maintenance of the line.
The Planning Commission reviewed this alley abandonment request as part of its review of the Site Development Plan for Wesley College – Alexander Hall and recommended approval of the abandonment of the two alleys as requested.
In formulating this recommendation, the Commission considered the following points:
Recommendation of the Planning Staff: The Planning Staff recommended the abandonment of the two alleys with the space maintained as circulation for the fire lanes and driveways to parking facilities. The alley taking access from Division Street should be maintained as a fire lane for access to the internal block between the building under construction and the proposed building. This area between the proposed building and the building under construction is required by fire codes.
Agency Comments from DAC Report: The City of Dover Office of the Fire Marshal notes the following: This office along with the Fire Department recommends that the area between the proposed building and the building under construction be utilized as a primary (24-foot) fire lane and be marked as such with no parking permitted. This is the location of Alley #2 to be abandoned.
DelDOT notes that entrance plans for the site must be submitted for review and approval.
Advisory Comments: Staff noted that a Minor Lot Line Adjustment Plan must be submitted for review to combine existing Parcels A, D, and C and to clarify ownership of a portion of Parcel B, as noted within the application. If approval for the abandonment of the alleys is received, this information should also be included on the plan noting ownership.
If the alleys are abandoned, agreements between the developer and adjacent property owners as to the use of parking spaces or cross access to nearby streets may need to be developed.
Mr. Lambert moved to recommend approval of the request for abandonment of the alleys, as recommended by the Planning Commission, with the condition that the City retain an easement for maintenance of the water line. The motion was seconded by Mr. Speed and unanimously carried. (City Clerk’s Note: In accordance with the City’s Procedure for Alley Abandonments, a Resolution setting the Public Hearing (Attachment #1) will be presented to Council for consideration for adoption.)
Mr. Ruane moved for adjournment, seconded by Mr. Ritter and unanimously carried.
Meeting Adjourned at 5:50 P.M.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Mr. Salters presiding. Members present were Mr. McGlumphy, Mrs. Williams, Mr. Shelton, and Mrs. Street.
Fox Hall Drive Water and Sewer Connection Fees
In conjunction with the City’s FY-2003 Budget and the 2003-2007 Capital Investments Plan, the Department of Public Works proposed to extend a water and sanitary sewer infrastructure to the area of Fox Hall Drive. As of this date, the projects are complete and connections are being made to the new mains by area residents. In the spring, the road will need to be resurfaced and the right-of-way will need final grading and seeding. The estimated final costs of these projects are as follows:
Fox Hall Drive Water Main Extension: $32,154.40 (Expenses to date are $24,516.58)
Fox Hall Drive Sewer Main Extension: $44,574.08 (Expenses to date are $29,755.40)
The Department of Public Works budgeted $26,000 for the water main project and $35,000 for the sanitary sewer project. There are thirteen (13) existing houses in the service area. One house has been relieved of the City’s connection fees since this property was granted an easement to allow the construction of these extensions; therefore, the potential construction reimbursements for these projects are based on the remaining twelve (12) houses plus two (2) undeveloped lots which currently exist in the project area.
Section 22-213 and Section 22-129 of the Dover Code allows City Council to set fees for connections to the City’s water and sewer infrastructure. Staff recommended the following connection fees for these specific projects:
Water Connection Fee (Fox Hall Drive Project) - $ 2,300.00
Sewer Connection Fee (Fox Hall Drive Project) - $ 3,183.00
The proposed sewer connection fee includes the current City of Dover impact fee. Due to the amount of the connection fees, staff recommended that an amortization schedule be utilized to allow these fees to be paid over a five (5) year period. The fees would be added to the monthly utility bill upon connection to the respective utility. Each property would also be required to pay the current County impact fee upon connection to the sewer system. County Impact fees have not been included in these calculations since they are governed by the County ordinances. All properties in the service area have been notified of the proposed fees and the meeting via certified mail.
Staff estimated that the potential reimbursement would be as follows:
Water Main Project: 14 x $2,300.00 = $32,200.(100% of the estimated final cost)
Sewer Main Project: 14 x $3,183.00 = $44,562.(100% of the estimated final cost)
Staff recommended the adoption of a water connection fee of $2,300 for the Fox Hall Drive Water Main Extension Project and a sewer connection fee of $3,183 for the Fox Hall Drive Sewer Main Extension Project. Staff also recommended amortizing the connection fees over a five (5) year period at an interest rate of 6.25%. The property located at 112 Fox Hall Drive is excluded from these fees since an easement across this property was granted to allow the construction of the infrastructure.
Responding to Mr. McGlumphy, Mr. DePrima stated that the project is complete; however, only two (2) houses have been connected. He also stated that the project will be over budget once the paving portion is completed.
Mr. Ed Larrivee, 115 Fox Hall Drive, stated that, to his knowledge, none of the residents of Fox Hall Drive requested that the water and sewer lines be installed. He noted that he has two (2) children in college and a $10,000 expenditure for water and sewer would have a significant impact on his family. Mr. Larrivee requested that the costs be reduced or the payoff time be extended to accommodate the residents.
Mr. Roy Shiels, 109 Fox Hall Drive, noting that the City also benefitted from the installation of the water and sewer lines in that it provided a loop for that service area, requested members to consider absorbing a portion of the costs. Responding, Mr. DePrima stated that the connection fees represented only “out of pocket” costs to the City and did not include labor provided by City crews. He indicated that consideration could be given to extending the payback period.
Mr. Shiels requested members to consider lowering the interest rate, which he felt was high at 6.25%. Mrs. Mitchell, Finance Director, noted that the interest rate is determined by the Delaware Code at the current prime rate plus 5%.
Responding to Mr. Shiels, Mr. DePrima noted that separate water and sewer meters are permitted under certain circumstances, such as when sprinkler systems are installed. Mr. Koenig stated that the approximate cost per 7,000 gallons is $17 at the in-city rate and $22 for the out-of-city rate. The average cost for sewer is approximately $33 per 7,000 gallons. Mr. Koenig noted that, based on the current rate structure, the average household using 7,000 gallons would incur a water bill of $24.71 per month and a sewer bill, including the City Wastewater Charge and the County Treatment Charge, of $30.31 per month.
Mrs. Williams questioned whether there would be a negative financial impact to the City if the payback period was extended. Mrs. Mitchell stated that she did not foresee a problem. Mr. DePrima noted that it could be beneficial since more residents may connect if they have a longer payback period.
Mr. David Taylor, 107 Fox Hall Drive, stated that the approximate cost to residents, between the service and the connection fees, would be $170 per month. He requested members to do what they could to help the residents afford the service.
Mr. Jim Dejong, 105 Fox Hall Drive, stated that he just purchased his home in April and is not ready to connect to the service. He asked if the cost would be the same four (4) or five (5) years from now. Mr. DePrima stated that the cost would remain the same.
Mr. Speed informed members that changing the payback period from five (5) to ten (10) years would reduce the monthly payment by approximately $40. A payback period of 15 years would only reduce the monthly payment by another $9. He suggested that a payback period of ten (10) years would be preferable to 15 years.
Mr. McGlumphy moved to recommend adoption of a water connection fee of $2,300 for the Fox Hall Drive Water Main Extension Project and a sewer connection fee of $3,183 for the Fox Hall Drive Sewer Main Extension Project, amortizing the connection fees over a ten (10) year period at an interest rate of 6.25%. The motion was seconded by Mr. Shelton and unanimously carried. (Note: The property located at 112 Fox Hall Drive is excluded from these fees since an easement across this property was granted to allow the construction of the infrastructure.)
Council Executive Sessions
During the Special Council Workshop of January 13, 2003 members of Council and staff met with City Solicitor Rodriguez and Deputy City Solicitor Pepper to discuss recent concerns regarding Council related meetings, public notices, and the Freedom of Information Act; to assure that members of Council and staff are conducting business in a correct manner and are meeting all legal requirements. The concerns and questions were raised as a result of the meeting on January 6th and so publicized in the Delaware State News on January 7th.
An opinion provided by the City Solicitor following the adjournment of the workshop suggested that members of Council vote in open session to go into executive session. City Solicitor Rodriguez indicated that to follow this procedure would eliminate the need to consult the Attorney General regarding a ruling.
Mr. Ritter expressed concerns with the way the executive sessions are noted on the agenda, feeling that they should be more descriptive in nature. Mr. Carey stated that Mr. Pepper, Deputy City Solicitor, indicated that they would provide more specific details without being detrimental.
Mrs. Williams moved to recommend following the recommendation of the City Solicitor, Mr. Rodriguez, to call for and record a vote of council members in open session prior to convening an executive session. The motion was seconded by Mr. McGlumphy and unanimously carried.
Review of Revenue Manual
During the regular meeting of December 9, 2002, members were provided a Draft Revenue Manual for their review and were requested to provide the City Manager, Mr. DePrima, with any comments or concerns within the next 30 days for a report back to the committee.
Mr. DePrima noted that he received some comments from Mr. McGlumphy. Mrs. Williams asked if Mr. DePrima was looking for guidance in any certain areas. He responded that the most critical area would be the schedule for updating fees, since it would impact the budget estimates. Secondly, Mr. DePrima thought the revenue indicators were important in tagging expenses to revenues, and the third most important area would be new funding sources.
Mr. DePrima requested authorization to move forward with a review of revenues for appropriateness (Item II of the Revenue Guidelines). Mr. McGlumphy requested the addition of graphs depicting the assumptions and projection methods, as well as more clearly defined terminology prior to taking action. He also emphasized the need to look more closely at additional sources of revenues. It was Mr. Salters’ feeling that the basis for licenses and fees should be reviewed, such as demolition permits, which cost the same regardless of the size of the building. Mrs. Williams suggested using differentials in determining fees.
Mr. DePrima requested authorization to go forward with requesting the department heads to review their fees for a report back to the Committee. He also requested members to continue to review the Revenue Manual and provide recommendations.
Mr. Ruane stated that he supported the Review for Appropriateness and requested staff to include the Kent County Library User Fees in their review. He also requested clarification on Item III, A-C, including a presentation on what the real implications are on a given year.
Mr. McGlumphy moved to provide the City Manager with an opportunity to: 1) analyze the fee structures (as outlined in Roman numeral II of the Revenue Manual) to determine which fee structures need to be updated; 2) provide additional information and further explanation as to the types of terminology being used (Roman numeral III of the Revenue Manual); and 3) provide a presentation of recommendations for additional revenue sources. The motion was seconded by Mrs. Williams and unanimously carried.
Mrs. Williams requested that all future updates to the Revenue Manual be sent via e-mail as they are prepared in order to expedite the process.
Mr. Salters moved for adjournment, seconded by Mr. McGlumphy and unanimously carried.
Meeting Adjourned at 6:55 P.M.
Respectfully submitted,
Carleton E. Carey, Sr.
Council President
CEC/tm
S:\ClerksOffice\Agendas&Minutes\Committee-Minutes\2003\01-13-2003.min.wpd