COUNCIL COMMITTEES
The Council Committees Meeting was held on August 26, 2002, at 5:45 p.m., with Council President Carey presiding. Members of Council present were Mr. Ritter, Mr. Pitts, Mrs. Williams, Mr. Truitt, Mr. McGlumphy, Mr. Salters, Mr. Ruane, and Mayor Hutchison. Mr. Speed was absent.
AGENDA ADDITIONS/DELETIONS
Mr. McGlumphy moved for approval of the agenda, seconded by Mr. Salters and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Salters presiding. Members present were Mrs. Williams, Mr. McGlumphy, and Mr. Shelton. Mr. Truitt was requested to serve in the absence of Mrs. Street.
Review of Proposed Ordinance Amendment - Chapter 13 - Motor Vehicles and Traffic, Section 13-16 - Violations (Increase in Parking Fines)
During the Special Legislative and Finance Committee Meeting held on July 31, 2002, members reconsidered a proposed ordinance amendment to Chapter 13 - Motor Vehicles and Traffic, Section 13-16 - Violations, of the Dover Code that would increase parking fines, as directed by Council during their Regular Meeting of June 24, 2002. The committee recommended that no further action be taken on the proposed increase in parking fines until such time that a study is complete, which is cost effective and time efficient.
Mr. DePrima stated that he consulted with the Dover Parking Authority, noting that they are generally a partner in any type of parking study. It was their feeling that neither money nor staff resources should be spent studying the issue at this time; however, it should be studied within the context of an upcoming parking study. The Parking Authority submitted a letter of support for a $5.00 increase in the parking violation fines.
Mr. DePrima stated that Main Street also submitted a letter supporting the concept of a $5.00 increase. It was their feeling that the increase should be done as an inflationary adjustment, and should be designed in the spirit of ensuring that the higher fine will be a detriment to parking scofflaw’s and not a detriment to shoppers wishing to access the downtown area. Main Street also suggested an initiative to re-sign all of the free public parking in the downtown area with universal parking signs.
Responding to Mr. McGlumphy, Mr. DePrima stated that the proposed budget for police revenues would be approximately $40,000, including a $5 increase in parking fines. He noted that there would be a shortfall of approximately $20,000 in balancing the budget. It was Mr. Ruane’s understanding that an increase in the parking fine from $10 to $15 would generate $40,000 in revenue and an increase from $10 to $25 would generate an additional $67,500 for a total increase of $107,000.
Mrs. Williams moved to recommend approval of a $5 increase in the parking fine, as suggested by the Dover Parking Authority and Main Street Dover. The motion was seconded by Mr. Truitt.
Responding to Mr. McGlumphy’s concerns regarding a balanced budget, Mr. Truitt stated that, since many downtown business owners are concerned about the increase in the fine, they should consider the fine separate and apart from the balanced budget issue.
On a call for the question by Mr. Salters, the motion to recommend approval of a $5 increase in the parking fine, as suggested by the Dover Parking Authority and Main Street Dover was unanimously carried.
Robbins Hose Company - Purchase of Fire Truck
On December 27, 2001 the Council President signed an agreement with the Robbins Hose Company that covered payments to be made to the Company for various capital expenses. The agreement also included a clause that stated, “The terms of any future agreements between the Company and the City will be in writing and signed by the appropriate representative of the Company and the City.” This agreement was later approved by the City Council during their meeting of January 28, 2002.
In keeping with the December 27, 2001 agreement, a new written agreement to cover the purchase and transfer of funds for Engine #3 was negotiated between the City Manager, Mr. DePrima, and Fire Chief Bashista, with the Finance Director, Mrs. Mitchell, serving in an advisory capacity.
The agreement is for four (4) years, with the first payment being made in June 2003 or earlier if the truck is delivered before June. The second payment will be made in July 2003 and the next two payments in July of the following two (2) years. Should the cost of the truck be less than budgeted or the financing terms cause a reduced payment, then the first two (2) payments will be $88,000 and the last two payments will be reduced to reflect the actual charges. The Fire Department wishes to order this vehicle in October with a possible delivery in the spring or summer of 2003.
The Finance Director agrees with the basic terms of the agreement but feels the agreement should take the form of a motion that is approved and recorded in the minutes and should not be a written and signed agreement.
This purchase and the transfer are covered on page 19 of the Capital Investments Plan. The first year payment of $88,000 is within the Fire Department’s section of the Annual Budget where it is described on page 126 and included in the Construction Purchase (40-31) on page 129.
Staff recommended approval of a long-term agreement for the financing of Engine #3 through either the proposed memorandum of agreement or a formal motion, as proposed by the Finance Director.
Responding to Mr. Salters, Mrs. Mitchell stated that the funds could be encumbered for the next fiscal year if delivery of Engine 3 is delayed beyond June 30, 2003.
Mr. McGlumphy moved to recommend that the City of Dover provide an annual appropriation to Robbins Hose Fire Company No. 1 to assist in financing the purchase of Engine 3: the first payment of $88,000 will be due upon delivery of Engine 3, which is expected to occur in June 2003; the second payment of $88,000 will be provided in July 2003; Robbins Hose Company No. 1 will apply both the June 2003 and July 2003 payments to the down payment on the truck. The subsequent annual appropriations in Fiscal Years 2005 and 2006 will be transferred to Robbins Hose Company No. 1 at the time such payments are due to the financing institution; the amount transferred will be equal to the payment to the financing institution, not to exceed $88,000. The motion was seconded by Mr. Shelton and unanimously carried.
Evaluation of Multi-Year Bid - Crusher Run, #57 Stone and Type “C” and “G” Select Borrow
The Department of Public Works uses varying quantities of crusher run, #57 stone, and select borrow for both capital and maintenance projects throughout the City of Dover and the utility service territories. Upon review of the supply history, staff recommended that City Council endorse the low bid for supply and delivery of the products since the value of the quantities to be purchased may exceed $25,000 in each of the next three (3) fiscal years. The City has spent the following combined amounts on these products over the past three fiscal years: FY-2000 - $37,686.93, FY-2001 - $22,194.53 and FY-2002 - $59,467.52. Sealed bids were solicited for the supply and delivery of these products, with the sole bid being received from Tilcon Delaware, Inc., Dover, Delaware as follows:
Total Total Total
Material Tons Year 1 Year 2 Year 3
C-Borrow 1,500 $4.60 $5.20 $5.30
G-Borrow 1,000 5.10 5.70 5.80
Crusher Run 3,500 11.50 11.75 12.00
#57 Stone 600 14.00 14.50 15.00
The City’s purchasing agent, Mr. Peter Gregg, has confirmed that these items are not offered as part of the State of Delaware statewide material or services contract.
The funding for the purchase of varying quantities of these products is imbedded in the overall costs of the capital projects identified in the budget. Actual costs and quantities of these products have not been itemized in the projects; however, all purchases will be based on available funding in the capital project or maintenance account for the operating division completing the work. This bid will be open to all City departments who need to purchase these products.
Staff recommended awarding a multi-year blanket purchase order to Tilcon Delaware, Inc. for the supply and delivery of crusher run, #57 stone, and select borrow at the bid prices.
Mr. McGlumphy moved to recommend approval of staff’s recommendation, seconded by Mr. Shelton and unanimously carried.
Mr. McGlumphy moved for adjournment, seconded by Mr. Shelton and unanimously carried.
Meeting Adjourned at 6:21 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Ruane presiding. Members present were Councilman Ritter, Mr. Snaman and Mr. Lambert. Mr. Speed was absent.
Annexation Request - Property Located at the Southeasterly Corner of the Intersection of Route 13 and Scarborough Road (SR 1 Interchange), owned by Wilmington College, Inc.
Members considered an annexation request for properties located at the southeasterly corner of the intersection of Route 13 and Scarborough Road (SR 1 Interchange), consisting of 19.328+/- acres. The property is owned by Wilmington College, Inc.
The Planning Staff recommended that the property be annexed into the City of Dover and that the subject property be zoned I-O (Institutional & Office) upon annexation. Mr. Petit de Mange advised members that the Planning Commission recommended approval of the request for annexation, as recommended by staff.
Mr. Petit de Mange reminded members that a stated goal of the Comprehensive Plan is to maintain and improve the City’s position as a center of government, higher education, and medicine through support of existing institutions and encouraging well-designed campuses that are integrated into the community and that have room to expand. The Comprehensive Plan also urges policies and practices that preserve and promote the long-term vitality of our major institutions and governmental agencies through appropriate zoning, providing protection from incompatible uses, and by providing ample land for future expansion.
Responding to Mr. Snaman, Mr. Petit de Mange indicated that although the City has not officially adopted an annexation plan as required by the State, the State requirements for proceeding with the annexation have been met. He noted that the Comprehensive Annexation Plan is also underway and will include a cost benefit analysis and a facilities planning model. Mr. Petit de Mange has relayed this information to the State Planning Office.
Mr. Lambert moved to recommend approval of the Planning Commission’s recommendation for annexation of the property located at the southeasterly corner of the intersection of Route 13 and Scarborough Road (SR 1 Interchange). The motion was seconded by Mr. Snaman and unanimously carried.
Dedication of Rights-of-Way and Public Infrastructure - Village of Westover - Phase II
The developer of the Village of Westover - Phase II, Frank Robino Associates, Inc., has requested that all public rights-of-way and infrastructure be dedicated to the City of Dover for permanent ownership and maintenance. Members were provided a map depicting the general location and configuration of the subject rights-of-way. After construction was completed, City staff inspected the public improvements and provided the developer with a list of repairs to be made to meet the City of Dover Standards and Specifications for Public Works Construction. As of this date, all work has been completed by the developer. A one-year Maintenance Agreement, Maintenance Bond, and a Release of Liabilities have been submitted by the developer. In addition, as-built drawings have been submitted to the Department of Public Works for their permanent records.
A list of all public improvements which are to be accepted by the City of Dover is as follows:
Sewer Utility Infrastructure:
8" PVC Sanitary Sewer Main - 2,260 l.f.
6" PVC Sanitary Sewer Laterals-1,350 l.f. (45 laterals)
4' Diameter Sanitary Sewer Manholes- 10 ea. (77.24 v.f.)
Water Utility Infrastructure:
8" Ductile Iron Water Main-2,430 l.f.
6" Ductile Iron Water Main - 60 l.f.
1" Type “K” Copper Water Service Line-930 l.f. (45 services)
8" Gate Valves-5 ea.
6" Hydrant Valves-4 ea.
Fire Hydrants-4 ea.
Storm Water Infrastructure:
Catch Basins-28 ea.
15" Type III Reinforced Concrete Pipe-302 l.f.
15" N-12 Plastic Pipe-885 l.f.
18" Type III Reinforced Concrete Pipe-106 l.f.
18" N-12 Plastic Pipe-68 l.f.
18" Corrugated Metal Pipe-190 l.f.
21" Type III Reinforced Concrete Pipe-222 l.f.
21" Corrugated Metal Pipe-45 l.f.
36" Type III Reinforced Concrete Pipe-460 l.f.
Rights-of-Way:
Charring Cross DriveStation 3 + 20 to Station 17 + 83
Staff recommended acceptance of the dedication of rights-of-way and public infrastructure in the Village of Westover - Phase II, with the above referenced public improvements to be included in the acceptance of the dedication.
Mr. Lambert moved to recommend approval of staff’s recommendation, seconded by Mr. Snaman and unanimously carried.
NRG Tariffs
There have been two (2) major changes in the relationship between Energy Center Dover, LLC (NRG) and the City of Dover. The agreement among the City of Dover, Kraft, Inc., First State Power Management, Inc. and Duke Louis Dreyfus that governed the sale of the electric output of the 16 MW steam unit expired December 31, 2001 and was not renewed. Before the contract expired, First State Power was purchased by NRG. NRG took over ownership of the 16 MW steam plant and responsibility for the contracts for the plant. Plans were already underway to build two 44 MW gas turbines on the same site as the 16 MW steam unit when NRG took ownership of the site. NRG completed those plans and installed the gas turbines.
When the agreement ended for the steam unit, the electric output for that unit was no longer going to be sold to Dover or Duke. NRG elected to wheel (transmit) the power to be sold on the PJM power grid over the City's electric system. This required them to use City power lines to get their energy from the North Street Substation to the College Road Substation. After much discussion, an agreement was reached that would require NRG to pay for the use of the Dover transmission system.
When the new steam unit is not on line due to a planned or emergency outage of the steam unit, NRG must purchase power from the City of Dover until the generator can be put back on line. In order for NRG to sell power directly to PJM, it was necessary to lease dedicated lines from the City for the exclusive use of NRG. The City has a 69KV line from North Street to the Kent Substation which was not being used by the City and was leased to NRG for that purpose.
The cost for wheeling 16 MW through our system would be a minimum of $44,160 a year. This will cover the annual cost of maintenance and repairs for this line. Costs were based on the size, length and age of the line, and included the line losses associated with this transaction.
The supplemental electric service would have a summer demand rate of $6.75 per KW-month and a winter demand charge of $5.20 per KW-month. The energy charge would be 4.63 cents per KWH both summer and winter. The revenue for the supplemental electric service would be based on the level of usage by NRG. The rate of the dedicated line for the 88 MW is $30,000 a year. This charge will cover the cost of annual maintenance and repairs for this line. The cost was developed based on the size, length, and age of the line.
All three of these tariffs were written by Mr. Kirk Betts of Betts & Holt--a law firm based in Washington, D.C. The metering procedures and cost development were done by Curtis Wilson of Wilson & Wilson, LLC--an engineering consulting firm. Both of these firms have extensive experience with the City of Dover and our electric system. Mr. Dennis L. Platteter, Chief Operating Officer for NRG in Dover, has reviewed all three tariffs and has accepted them as written. Staff recommended approval of all three (3) tariffs.
Responding to Mr. Lambert, Mr. DePrima noted that the agreement is for one (1) year.
Mr. Snaman moved to recommend approval of staff’s recommendation, seconded by Mr. Lambert and unanimously carried (Attachments #1, #2, and #3).
Mr. Ritter expressed concern with the amount of noise that NRG’s 88 MW unit is producing. Mr. Les Blakeman, Generation Manager, responded that the noise is caused by steam being vented from the coal fired unit. Mr. Ruane requested Mr. Blakeman to make a formal inquiry into the noise and report back to the Utility Committee within the next two (2) weeks.
Mr. McGlumphy moved for adjournment, seconded by Mr. Ruane and unanimously carried.
Meeting Adjourned at 6:53 P.M.
Respectfully submitted,
Carleton E. Carey, Sr.
Council President
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