COUNCIL COMMITTEES

The Council Committees Meeting was held on August 12, 2002, at 5:30 p.m., with Council President Carey presiding. Members of Council present were Mr. Ritter, Mr. Pitts, Mr. Truitt, Mr. McGlumphy, Mr. Speed, Mr. Ruane, and Mayor Hutchison. Mr. Salters and Mrs. Williams were absent.

AGENDA ADDITIONS/DELETIONS

Mr. McGlumphy moved for approval of the agenda, seconded by Mr. Speed and unanimously carried.

LEGISLATIVE AND FINANCE COMMITTEE

The Legislative and Finance Committee met with Mr. McGlumphy presiding in the absence of Mr. Salters. Members present were Mrs. Street and Mr. Shelton.

Dover Human Relations Commission - Proposed Budget

Members were presented with the Human Relations Commission Budget Estimates for Fiscal Year 2002-03 as follows:

It was noted that if a restricted donation or grant is received from an external agency, corporation, foundation, government, etc. for a specific project or program, the information on income and expenses thereof will be maintained and reported separately under the respective project or program concerned.

Responding to Mr. Ritter’s concerns regarding the amount of money being provided to the commission, Mr. McGlumphy suggested that the commission could present a six-month status report detailing their activities.

Mrs. Street moved to recommend approval of the proposed budget, as presented, seconded by Mr. Shelton and unanimously carried.

Proposed Ordinance Amendment - Section 2-22 - Absentee Voting - Referendums

At the request of Council President Carey, City Solicitor Rodriguez reviewed Delaware Code Title 22, §101 - Annexation by City or Town, to determine the possibility of allowing absentee voting for annexation referendums. Mr. Rodriguez found that State voting laws on absentee voting indicate that it is permissible in general and special elections and it was his opinion that absentee voting could be permitted in annexations without violating the provisions of State law or the City Charter.

Mr. Rodriguez provided an ordinance amendment to Section 2-22 of the Dover Code which would allow absentee voting in annexation referendums for their consideration.

Mrs. Street moved to recommend approval of the proposed ordinance amendment to Section 2-22 of the Dover Code as presented (Attachment #1), seconded by Mr. Shelton and unanimously carried.

Evaluation of Bids - Cast Aluminum Poles and Acorn Shaped Luminaires

In conjunction with the Downtown Dover Pedestrian Amenities Project - Phase III, the City of Dover elected to separately bid the lighting system (55 lights) proposed for the streetscape improvements. In addition, the bid package included nine (9) lights for the Dover Library parking lot. The nine (9) lights that are currently in operation at the Dover Library parking lot were originally planned for installation on Loockerman Street in the vicinity of Duncan Depot. Due to the extensive redevelopment in this area, the installation of the nine (9) lights has been deferred until late 2002 or early 2003. The specifications for the historical light standards were prepared by the Department of Public Works and Landscape Architectural Services under the supervision of the State of Delaware, Department of Transportation. Bids were received from the following companies:

            Rumsey Electric/Tecot Electric, Conshohocken, PA                         $ 102,464.00

            Dover Electric Supply Co., Inc., Dover, DE                                      $ 110,784.00

The City of Dover requested Landscape Architectural Services to make a recommendation regarding the low bid qualifications. Based on its review, Landscape Architectural Services, Inc. recommended awarding the bid to Rumsey Electric contingent upon a final review by the project sponsor, the State of Delaware, Department of Transportation.

The funding for the purchase of the lights is split between the Streets Department Operating Budget and the Transportation Enhancement Grant Fund. The purchase of fifty-five (55) lights in the amount of $88,055.00 for the Downtown Dover Pedestrian Amenities Project - Phase III will be charged against the Transportation Enhancement Grant Fund as shown on page 198 of the 2003 Draft Operating Budget and page 38 of the Capital Investments Plan. In addition, $14,409.00 for the purchase of nine (9) lights for the Dover Library parking lot will be charged against the Streets Department Operating Budget. The lights for the parking lot were budgeted at $18,700.00 as detailed on page 154 of the 2003 Draft Operating Budget. Separate purchase orders will be issued for each project immediately after Council approval in order to reserve a delivery date.

Staff recommended awarding the bid for the purchase of fifty-five (55) traditional cast aluminum poles and acorn shaped luminaires for the Downtown Dover Landscape and Pedestrian Amenities Project - Phase III to Rumsey Electric/Tecot Electric in the amount of $88,055.00, contingent upon the concurrence of the project sponsor, the State of Delaware, Department of Transportation; and awarding the bid for the purchase of nine (9) traditional cast aluminum poles and acorn shaped luminaires for the Dover Library Parking Lot Project to Rumsey Electric/Tecot Electric in the amount of $14,409.00, for a total purchase price of $102,464.00.

Mr. Shelton moved to recommend approval of staff’s recommendation, seconded by Mrs. Street and unanimously carried.

Due to time constraints, staff requested that this item be presented to Council for consideration during their meeting later in the evening.

Evaluation of Multi-Year Bid - Ready Mix Concrete Products

The Department of Public Works uses ready mix concrete products for various capital and maintenance projects throughout the City of Dover and the utility service territories. Upon review of the supply history, it was determined that since the value of the quantities to be purchased may exceed a value of $25,000 in each of the next three (3) fiscal years, the low bid for supply and delivery of ready mix concrete products should be presented to Council for approval. The City of Dover has spent the following amount on ready mix concrete products over the past three fiscal years: FY 2000- $17,245.36, FY 2001 - $15,119.13 and FY 2002 - $28,063.20. Bids were solicited for the supply and delivery of ready mix concrete products. Wyoming Concrete Industries, Inc. and Atlantic Concrete, Inc., the only vendors in the area who supply and deliver the products outlined in the bid package, were each provided the opportunity to bid with the sole bid being received from Wyoming Concrete Industries, Inc., Wyoming, Delaware as follows:

                                                          Through                   Effective 4/1/03             Effective 4/1/04

      Mix Description                          3/31/03                    through 3/31/04             through 3/31/05

    Class B State Mix                     $67.00/cy.yd                  $70.00/cy.yd                  $73.00/cy.yd

    3000 PSI Concrete                    $66.50/cy.yd                  $69.50/cy.yd                  $72.50/cy.yd

    3500 PSI Concrete                    $67.00/cy.yd                  $70.00/cy.yd                  $73.00/cy.yd

    1% Accelerator                          $5.00/cy.yd                    $5.50/cy.yd                    $6.00/cy.yd

    2% Accelerator                          $7.00/cy.yd                    $7.50/cy.yd                    $8.00/cy.yd

    3% Accelerator                          $9.25/cy.yd                    $9.75/cy.yd                   $10.25/cy.yd

    4% Accelerator                         $11.25/cy.yd                  $11.75/cy.yd                  $12.25/cy.yd

Responding to Mr. Speed, Mr. Koenig indicated that the price escalation was in line with prices paid during the previous year for concrete.

The funding for the purchase of various quantities of concrete is imbedded in the overall costs of the capital projects identified in the budget. Costs for concrete have not been itemized in these 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.

In order to comply with the City’s purchasing policy, staff recommended awarding a multi-year blanket purchase order to Wyoming Concrete, Inc., the sole bidder, for the supply of concrete at the specified bid prices. The total quantity of concrete purchased will be contingent upon available funding in the budget. No quantities of purchase are guaranteed based on the award of the purchase order.

Responding to Mr. Ritter, Mr. DePrima stated that a “not to exceed” amount was not included in the bid because it would be extremely difficult to track several projects in several different funds. He noted that projects are monitored through the budget line items and the budget keeps the costs under control. Mr. Ritter asked if concrete was a part of the State contract and, if so, why the City did not obtain concrete from the State contract. Mr. Koenig indicated that he would look at the contract for concrete prices and advise Council of his findings prior to final approval of the bid. (Note: In a memo dated August 13^th, Mr. DePrima indicated that staff researched this matter and that it was discovered that there are no State Contracts for ready mix concrete).

Mrs. Street moved to recommend awarding the multi-year bid for ready mix concrete products to the sole bidder, Wyoming Concrete, as recommended by staff. The motion was seconded by Mr. Shelton and unanimously carried.

Evaluation of Multi-Year Bid - Flagger Services

The Department of Public Works uses a private contractor to provide flagger services for traffic control on a variety of public works and utility projects. These services are used on an as-needed basis and are necessary to provide safety to the workers, pedestrians, bicyclists and motorists within the work zone. Upon review of our usage history, staff has determined that, since the value of the services may exceed $25,000 in each of the next three fiscal years, the low bid for flagger services should be presented to Council for approval. The City of Dover has spent the following amounts on flagger services over the past three fiscal years: FY 2000 - $17,312.85, FY 2001 - $35,751.25 and FY 2002 - $3,120.00. Bids were solicited for flagger services with the sole bid being received from Highway Traffic Controllers, Inc. of Wyoming, Delaware for $18.00 per hour. It was noted that there are only two (2) vendors in this area who provide these types of services - Highway Traffic Controllers, Inc. and Arrowhead Management, Inc. Both were given the opportunity to bid.

The funding for these services is imbedded in the overall costs of the capital projects identified in the budget. The costs for these services have not been itemized in these projects; however, all purchases will be based on available funding in the capital project or maintenance account for the operating division requesting the services. The bid package estimated 2,000 man hours per fiscal year. This bid will be open to all City departments who need to purchase these services.

In order to comply with the City’s purchasing policy, staff recommended awarding the multi-year bid for flagger services to Highway Traffic Controllers, Inc. for the supply of flagger services on an as-needed basis. The hourly rate will be $18.00 per hour for FY 2003, FY 2004, and FY 2005. (Note: In a memo dated August 13^th, Mr. DePrima indicated that staff researched this matter and that it was discovered that there are no State Contracts for flagger services).

Mr. Ritter stated that he would like to see a breakdown of the amounts spent for flaggers for each project in the budget.

Mrs. Street moved to recommend awarding the multi-year bid for flagger services to the sole bidder, Highway Traffic Controllers, Inc., as recommended by staff. The motion was seconded by Mr. Shelton and unanimously carried.

Mr. Shelton moved for adjournment, seconded by Mrs. Street and unanimously carried.

Meeting Adjourned at 6:12 P.M.

UTILITY COMMITTEE

The Utility Committee met with Chairman Ruane presiding. Members present were Councilmen Ritter and Speed, Mr. Snaman and Mr. Lambert.

Mr. Ruane noted that information pertaining to Item #2, Additional Work Request - Downtown Dover Pedestrian Amenities Projects, had just been provided to members and asked if they wished to consider it or postpone the item until they have had an opportunity to review the information.

Mr. Speed moved to take a five (5) minute recess to provide members an opportunity to review the proposal, seconded by Mr. Snaman and unanimously carried.

Meeting recessed at 6:15 p.m. and reconvened at 6:25 p.m.

Mr. Lambert moved to allow Item #2, Additional Work Request - Downtown Dover Pedestrian Amenities Projects, to remain on the agenda for consideration, seconded by Mr. Speed and unanimously carried.

Evaluation of Cost Proposal - Water System SCADA Upgrade

The Department of Public Works identified a necessary upgrade of the SCADA system currently in operation at the Long Point Road Water Treatment Plant as the primary capital project for the water utility. SCADA is the acronym for a System Control And Data Acquisition (SCADA) System. SCADA systems allow operators to send and receive real-time monitoring and control information for a variety of utility functions including run/stop, tank elevations, entry alarms, flow measurements, pressure readings, power supply, chemical dosing, and other related functions. This project will expand the use of the existing 9710 MICROCAT master located at the treatment plant to include the 15 deep wells, 6 elevated storage tanks, chemical scale weight inputs, entry acknowledgment, a computer station and monitor upgrade, and miscellaneous software and hardware improvements.

The existing SCADA system which controls the water system has a software architecture which is outdated and no longer supported by the vendor. The SCADA system which was purchased for the Electric Department several years ago is not currently compatible with the water system since the water production system is based on a demand matrix. The proposed SCADA upgrade is intended to give the Water Plant operators control of the production system so they can make adjustments to the system under real-time circumstances. The addition of chemical feed indicators and production/demand flow matching, as a result of our new chlorine and fluoride treatment systems, requires a greater level of control than was previously necessary. The upgraded system will utilize a matrix on an HMI (Human Machine Interface) display screen to enable selection and operation of the wells within the three (3) discrete aquifers and production permit allocations. Daily and monthly production reports will be generated upon demand. The upgrade includes, but is not limited to, SCADA hardware, SCADA software, SCADA alarm dialer software and programming, intrusion switches, 18 new remote transmitting units and training on the new system. The alarm dialer will alleviate any need for 24-hour on-site staff. The ramifications of not progressing with this project could be detrimental to the utility and could compromise the drinking water safety.

The MICROCAT SCADA telemetry system is a proprietary system; therefore, no bids were solicited for this work. Whel-Tech, Inc. is the manufacturer’s representative for the MICROCAT system. Staff has visited a similar operation at the City of Rehoboth Beach and believes the upgrade to be essential to the management of the water utility.

The funding for the Water System SCADA Upgrade is identified on page 179 of the 2003 Draft Operating Budget in the amount of $190,000 and on page 96 of the CIP. All costs for this project will be charged to the Water Improvement & Extension Fund (Construction - Purchase).

 

Staff recommended awarding a purchase order to Whel-Tech, Inc. for the purpose of upgrading the MICROCAT SCADA System and other miscellaneous hardware in accordance with its cost proposal. The total cost of the upgrade will not exceed $190,000.

Responding to Mr. Ritter, Mr. J. J. Grabenstein, Regional Manager with Whel-Tech, stated that once the system is upgraded to an “open architecture”, other vendors may be used to expand the system. It was Mr. Ritter’s feeling that an auto-dialer with a voice paging system would be a great asset for the City.

Mr. Koenig, Public Works Director, noted that the electronic monitoring would not eliminate the need for physically monitoring the system. He indicated that, due to the addition of chemicals, the State requires a redundant check to validate the electronic readings. However, Mr. Koenig stated that there would not be a need for additional personnel to man the system.

Mr. Speed moved to recommend awarding a purchase order to Whel-Tech for the purpose of upgrading the MICROCAT SCADA System and other miscellaneous hardware in accordance with its cost proposal, with the total cost of the upgrade not to exceed $190,000, as recommended by staff. The motion was seconded by Mr. Lambert and unanimously carried.

Additional Work Request - Downtown Dover Pedestrian Amenities Project

In conjunction with the Downtown Dover Pedestrian Amenities Project - Phase III, the Department of Public Works intends to replace and upgrade the wiring circuits for the new street lights to be installed on Loockerman Street. This work will include the demolition and replacement of approximately 7,500 square feet of concrete sidewalk, 2,400 linear feet of trenching for the street light conduits, and the construction of 36 concrete street light bases. The sidewalks would also complement the upgrades being funded by DelDOT. The proposed work is being undertaken outside of the project limits for the Transportation Enhancement Project; therefore, these improvements were not included in the construction documents. The Department of Public Works has negotiated with Designed Improvements, Inc. (the selected contractor for the main project) the following unit prices to complete the requested work:

     Description                                              Est. Qty.           Unit Cost              Extended Cost

     Demolition of Concrete Sidewalk                 7,500 SF           $2.81 / SF     =       $21,075.00

     Trenching & Installation of Conduit                                        2,400 LF     $12.67 / LF      =$30,408.00

     Construct Concrete Light Base                        36 EA       $627.00 / EA     =       $22,572.00

     Install New Concrete Sidewalk                    7,500 SF           $5.48 / SF     =       $41,100.00

     Total                                                                                                             $115,155.00

Designed Improvements, Inc. was the contractor for previous phases of this project. Bids were not solicited for the work outlined above due to the provisions under 3.17 (A) Sole Vendor and 3.17 (B) Negotiations of the City’s Purchasing Policy.

Funding for the additional work to be completed “outside of the project limits for the Downtown Dover Pedestrian Amenities Project” has been reserved in the FY-2003 Street & Alley Program identified on page 145 of the 2003 Draft Operating Budget and page 80 of the 2003-2007 Capital Investments Plan. Up to $150,000 of the $250,000 general fund appropriation for this program has been earmarked to complete the required improvements. Additional costs for wire and miscellaneous materials will be incurred in addition to the payments to the contractor.

Staff recommended awarding a purchase order to Designed Improvements, Inc. in the amount of $115,155.00 to complete the required improvements identified in the additional work request. The contractor will be paid based on the unit prices of the work for all work completed and accepted by the City of Dover Department of Public Works.

Responding to Mr. Ritter, Mr. DePrima stated that the contracts inside the city limits and outside of the city limits needed to be separated for this project. He noted that Designed Improvements, Inc. was approved as the low bidder during the Regular Council Meeting of July 8, 2002 for part of the project and the price for this part of the project was then negotiated. Mr. Ritter felt that the City should have requested separate bids for this project.

Mr. Speed suggested that, for future bids of this nature, the total cost of the project should be provided.

For information purposes, Mr. Ruane requested that Mr. DePrima provide a recap of the Transportation Enhancement Grant which shows the action forms for all three phases of the project to include who the bids were awarded to, the amount of grant money received, and the general fund money and in-kind services provided by the City. It was Mr. Ruane’s feeling that the citizens may not fully appreciate the City’s contribution to the downtown area.

Mr. Speed moved to recommend awarding the purchase order to Designed Improvements, Inc. in the amount of $115,155.00 to complete the required improvements identified in the additional work request, as recommended by staff. The contractor will be paid based on the unit prices of the work for all work completed and accepted by the City of Dover Department of Public Works. The motion was seconded by Mr. Snaman and carried with three (3) yes, one (1) no (Mr. Ritter). Mr. Speed requested that this item be forwarded to City Council for their consideration later in the evening.

Electric Rate Study

The purpose of an Electric Rate Study is to provide Council and staff with information to allow the development of a long-range plan and financial strategy to meet the needs of the City of Dover Electric customers. There are three (3) components of the rate study. The “Cost of Service” Study will determine the actual cost to provide service to each class of customer, the “Revenue Requirements” Study will develop the revenues required for the operation of the electric system going forward for the next five (5) years, and the “Rate Design” Study will develop rates that will provide the required revenue to operate the system allocated to each class of customers based on the cost to serve that class of customers.

There has been no review of revenue requirements or costs to provide electric service to our customers since 1993. This was also the last time that the electric rates for each class were reviewed. In what has become a very dynamic and rapidly changing market for electric energy, it is of vital importance that we understand the costs involved and revenue required to supply an ever increasing demand for electric energy. It is equally important that we understand the specific cost to supply each customer class. Without this information, it is very difficult to budget and plan for future years.

In the future, our customers will require ever increasing levels of dependability and reliability while at the same time expect the lowest possible price for electric service. In order to be able to plan for the next five (5) years, a Request for Proposals was prepared for a “revenue requirements, cost of service and rate design.” Five (5) bids were received as follows:

                                 Burns & McDonnell                                   $90,000

                                 R. W. Beck                                                96,000

                                 Black & Veatch                                         100,000

                                 Downes Associates                                     135,000

                                 Middle West Service Company                      No bid

The proposal submitted by Burns & McDonnell, the low bidder at $90,000, was reviewed by staff and Mr. Kirk Betts, the City’s attorney who specializes in the electric industry, and it was determined that the bid meets all the requirements of the Request for Proposals. Burns & McDonnell has been serving cities like Dover since 1898 and is still providing services for Iola, Kansas, its first major customer at the turn of the century. They have been providing these studies for many years to a large number of cities and they have the background, experience, and staff to successfully complete the requested studies.

Members were provided a Project Schedule which indicated that the project would be presented for review by Council on three (3) separate occasions, with the final report being presented to Council for approval on January 27, 2003 and the new rate being effective March 1, 2003. Funding in the amount of $100,000 has been budgeted for this study in the Electric Revenue Fund under Contractual Services.

Mr. Speed noted that Council should reserve the right to set the rate regardless of the findings in the report.

Mrs. Mitchell, Finance Director, noted that Burns & McDonnell would provide expertise on major projects such as the 230KV tie, NOx Reduction, and an associated bond issue. They will also conduct the annual inspection of the system at a cost lower than has been previously paid to Middle West Services.

Staff recommended that the study be awarded to Burns & McDonnell for an amount not to exceed $90,000 with $10,000 reserved for change orders if requested by the City.

Mr. Lambert moved to recommend approval of staff’s recommendation, seconded by Mr. Speed and unanimously carried.

Mr. Speed moved for adjournment, seconded by Mr. Snaman and unanimously carried.

Meeting Adjourned at 7:10 P.M.

                                                                       Respectfully submitted,

                                                                       Carleton E. Carey, Sr.

                                                                       Council President

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