COUNCIL COMMITTEES
The Council Committees Meeting was held on May 28, 2002, at 5:30 p.m., with Council President Carey presiding. Members of Council present were Mr. Ritter, Mr. Pitts, Mrs. Williams (arrived at 6:14 p.m.), Mr. Truitt, Mr. McGlumphy, Mr. Speed, Mr. Salters, Mr. Ruane and Mayor Hutchison.
AGENDA ADDITIONS/DELETIONS
Mr. Ruane requested the addition of item #1A, Proposed Fee Schedule Amendment - Comcast, to the Utility Committee.
Mr. Speed moved for approval of the agenda as amended, seconded by Mr. McGlumphy and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Salters presiding. Members present were Councilmen McGlumphy and Ritter (deputized in the absence of Councilwoman Williams). Mrs. Street was absent.
Proposed Resolution - Moratorium on Single Family Conversions
During the Open Forum Segment of the Regular Council Meeting of April 22, 2002, several residents addressed members regarding activities occurring in the vicinity of North Governors Avenue and requested assistance from the City. As a result, staff was directed to institute a moratorium on single family conversions and submit a proposed resolution for consideration.
Mr. Petit de Mange explained that the moratorium would create a period for the development of ordinances to further regulate the conversion of single family homes to apartment houses and to specifically review the issue of student housing facilities in and around the vicinity of Wesley College. Although the moratorium would be for a maximum of one (1) year, Mr. Petit de Mange felt that the proposed ordinances would be prepared prior to that time.
Responding to Mr. Salters, Mr. Petit de Mange stated that the moratorium is targeted to the RG-1 (General Residence) zoning district, which is predominately located in the downtown area. He advised members that staff conducted a survey and, in the 200 block areas of Bradford Street, Governors Avenue, and Queen Street north of Wesley College, there are approximately 65 homes that could be converted from single family residences to yield 102 apartments.
Mayor Hutchison suggested that a vigorous effort be given to the inspection of the converted apartment housing in this area and those that are not in conformance should be made to revert to their proper use. He also advised members that a meeting is scheduled with the presidents of Wesley College and the University of Delaware and that, in order to more completely resolve the problems, they will establish written guidelines and a policy for students, to be implemented prior to September 2002.
In regards to the inspection of the apartment housing in the area, Mr. Ritter requested that garages also be included in the inspections.
Mr. Speed suggested that the word “prohibiting” in the fifth paragraph of the Resolution be amended with the words “further regulating”. Staff relayed no objections to the amendment.
Mr. John Anetrella, 405 N. Governors Avenue, thanked members for their efforts to resolve the problems on North Governors Avenue. It was his feeling that the proposed moratorium deals with pending issues or curtailing an escalation and that there is a need to address those problems that currently exist. He suggested further discussion regarding the action that can be taken to deal with the owners of rental properties who continually rent these residences to delinquent students or citizens and how they can be better policed.
Mr. McGlumphy moved to recommend adoption of the Resolution with the amendment to the fifth paragraph as suggested (Attachment #1), seconded by Mr. Ritter and unanimously carried. It was suggested that this matter be considered during the Council Meeting later this evening for final approval.
Request to Study and Formulate recommendations for the Conduct of Future City Elections
During the Election Board Meeting of April 29, 2002, members discussed observations made during the recent City election and recommended that City Council authorize the Election Board to perform a study to formulate recommendations for future City elections. The study would allow staff to research the feasibility and costs for having more than one (1) polling location, changing the election from a Tuesday to a Saturday, etc.
Responding to Mr. Ritter, Mrs. Green explained that the study would be conducted in-house by staff. The only costs involved would be for staff’s time and it was the Election Board’s feeling that they should obtain Council’s permission since they would be requesting City staff to assist with this project.
Mr. McGlumphy moved to recommend that the Election Board be authorized to perform a study on the conduct of elections to formulate recommendations for conducting future City elections. The motion was seconded by Mr. Ritter and unanimously carried.
Proposed Ordinance Amendment Section 2-70(2) - Council Compensation
Due to the current economic situation and the City’s budgetary constraints, members considered an amendment to Section 2-70(2) of the Dover Code that will eliminate the annual increase for members of Council for July 1, 2002. Mr. McGlumphy explained that the amendment refers strictly to this year’s annual increase, which is the result of discussion that occurred during the budget review process. He reminded members that there was discussion regarding the reduction of library books and that members of Council felt that the savings derived could be given to the City to assist in this matter.
Mr. McGlumphy moved to recommend adoption of the amendment to Section 2-70(2) of the Dover Code (Attachment #2), seconded by Mr. Ritter and carried with Mr. Salters voting no.
Foundation for Police Warehouse - Project #2002-PD0101
The beginning phase of the new Police Department Garage/Warehouse requires the construction of one masonry foundation (80'L x 48'W) including foundation footings, concrete masonry unit walls, and finished interior concrete slabs. Funding, in the amount of $97,000, was included in the Police Department’s budget for this fiscal year. It was noted that $35,000 will be reserved for the foundation, with the remaining funds to be carried forward into next year’s budget. There has been $95,000 set aside in next year’s budget for constructing the exterior shell and $125,000 is proposed for the following year for the interior fit out and exterior paving.
Staff recommended approval of the construction of the Police Department Garage/Warehouse foundation and that the bid be awarded to the lowest bidder, Falasco Masonry, in the amount of $26,670.
Mr. McGlumphy moved to recommend approval of staff’s recommendation, seconded by Mr. Ritter and unanimously carried. It was suggested that this matter be considered during the Council Meeting later this evening for final approval.
Mr. McGlumphy moved for adjournment, seconded by Mr. Ritter and unanimously carried.
Meeting Adjourned at 6:17 P.M.
SAFETY ADVISORY COMMITTEE
The Safety Advisory Committee met with Chairman Truitt presiding. Members present were Councilman Ritter, Councilwoman Williams, Mr. Tolbert, and Mr. Wolfe.
Discussion - Abandoned Vehicles (Councilman Pitts)
During the Council Retreat, members discussed the increase in the number of abandoned vehicles and possibilities to rectify this problem. Since there has been no further action taken on this matter, Mr. Pitts suggested that the City take a more active approach in eliminating abandoned vehicles in problem areas throughout the City.
Mr. Petit de Mange indicated that, during the past 12 months, 607 abandoned vehicle complaints/violations have been processed, with approximately 150 vehicles being towed. He noted that it costs $80 to $85 for each vehicle to be towed and that the cost to tow 150 vehicles would be $12,000, which is a substantial amount of money due to the towing company. He explained that the towing company is continuously taking a loss for providing this service since the majority of the vehicles are in very poor or dilapidated condition and there is no incentive for the owner to pay to retrieve the vehicle. The towing companies will no longer provide towing service unless payment is received at the time of the request. Mr. Petit de Mange stated that it was suggested that, in order to continue with this program, the City should budget for towing abandoned vehicles, to be paid back with any monies received from the owner. Although the funds requested for inclusion in the budget for this purpose was eliminated, he indicated there are some funds available in the demolition account that could assist in this matter.
Mr. Pitts felt that many of the problems are related to abandoned vehicles located on private property. He suggested that staff investigate the possibility of making property owners responsible for the costs or having the City bill the property owner for any expenses related to having the vehicle towed.
After much discussion, members suggested that this matter be referred back to staff to develop the best alternatives to address these issues.
Mr. Ritter moved for adjournment, seconded by Mrs. Williams and unanimously carried.
Meeting Adjourned at 6:37 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Ruane presiding. Members present were Councilmen Ritter and Speed, and Mr. Lambert.
Proposed Resolution - Comcast Merger
During the Council Meeting of April 8, 2002, members were provided information regarding the plans of Comcast Corporation and AT&T Corporation to combine their cable systems into a new company - AT&T Comcast Corporation. Mr. Ruane stated that the Finance Director/Treasurer has worked diligently, along with the Deputy City Solicitor, for the past several months in reviewing the issues involved with the proposed merger. Staff presented a proposed Resolution granting consent and approval of a change in control of Comcast Corporation.
Mr. Speed suggested that Section 4 of the proposed Resolution be amended by including “and state” between “federal” and “laws”, in case there may be state laws, rules, and regulations that would be applicable.
Mr. Speed moved to recommend adoption of the proposed Resolution as amended (Attachment #3), seconded by Mr. Ritter and unanimously carried.
Comcast Franchise Fee Schedule
During the committee meeting of April 8, 2002, members reviewed the Comcast Merger and suggested further review of the Comcast Franchise Fee calculation. Mr. Ruane advised members that this matter has been reviewed by the Deputy City Solicitor, in conjunction with the review of the proposed merger. As requested, staff provided an analysis of the Comcast Franchise Fee, as well as the changes resulting from the reduction of revenue attributed to the Internet ruling and the increase in revenue attributed to a recent ruling by the FCC on advertising and home shopping revenue. The analysis is reflective of the past year’s activity, from July 1, 2001 through March 31, 2002, as follows:
Current 5% of Revenue % Change Basis
Basis Basis (Ex. Internet)
Gross Revenue $4,574,265 $4,574,265 $4,574,265
Internet Revenue (262,325)
Net Revenue $4,311,940
Franchise Fee $195,000 $228,713 $259,224
Less: Internet (13,116)
Net Fee $246,108
Mrs. Mitchell, Finance Director/Treasurer, explained that the Current Basis is a fixed cost of $65,000 per quarter, per right-of-way agreement. The 5% of Revenue Basis calculation is 5% of gross Comcast Revenue and the Percent Change Basis calculation is 5.667% of Comcast revenue, excluding Internet.
Mr. Lambert relayed concern that the change in the calculation could have a detrimental effect on the City’s efforts to collect right-of-way fees from other utilities. It was his recollection that the City has the right to increase the $65,000 fixed cost fee, if the need arises, as long as it does not exceed the 5% of Revenue Basis calculation.
Responding, Mr. Ruane explained the complexity involved to adjust the fixed cost allocation, stating that a revised cost allocation plan and justification for the increase would be required, as well as the probability of hiring a consultant. It was his feeling that, until the City develops a rational, comprehensive, and fairly applied formula to all utilities, the amendment to the franchise agreement should be accomplished as proposed.
In response to concerns of Mr. Lambert, Mr. DePrima assured members that the City will continue to pursue means to collect right-of-way fees from other utilities.
Mr. Speed moved to recommend that the City’s Franchise Fee be calculated by utilizing the Percent Change Basis, currently at 5.667% of Comcast revenue, excluding Internet. The motion was seconded by Mr. Ritter.
For clarification, Mr. Worley, Area Director of Government Relations with Comcast, explained that the franchise fee is set at 5% of Comcast revenue. In accordance with a recent FCC ruling, the City also has the option to include the collection of advertising and home shopping revenue, which currently equates to an additional .667%, or waive this option. Although the 5% of Comcast revenue is set, the .667% will fluctuate.
Mr. Speed amended the motion to recommend that Comcast be authorized to collect all appropriate fees and that the City’s Franchise Fee be calculated by utilizing the Percent Change Basis, currently at 5.667% of Comcast revenue, excluding Internet. The motion was seconded by Mr. Ritter and unanimously carried. (It is noted that approval of the motion would authorize the Chairman of the Utility Committee to sign the legal documents to amend the Franchise Agreement, as agreed upon, to become effect July 1, 2002).
Request for Alley Abandonment - East-West Between 26 Slaughter Street and 502-504 and 508 W. Loockerman Street - Robert M. Duncan
A letter was received from David C. Braun, President of Gerald A. Donovan Associates, Inc., requesting the abandonment of a 10-foot alley running east-west between 26 Slaughter Street and 502-504 and 508 W. Loockerman Street, owned by Robert M. Duncan. The alley is unimproved and Mr. DePrima stated that there were no concerns from any City department regarding the abandonment of the alleys. Since these are paper alleys, review and approval by the D.A.C. and Planning Commission were not required. Staff recommended that a public hearing be set to abandon the alleys, and that if abandoned, it be stipulated that a permanent easement equivalent to the length and width of the alleys be retained for future utility installation if necessary.
In response to Mr. Ritter, Mr. DePrima explained that although there currently are no existing utilities, the City’s policy is to reserve the ability to do so in the future; therefore, it is recommended that a permanent easement be retained.
Mr. Robert Duncan, 2219 Morgan’s Choice Road, Camden Wyoming, indicated opposition to the City retaining such utility easement, feeling that it could impede the development of the area.
Responding, Mr. DePrima assured members that staff would further investigate the matter of retaining the utility easement prior to final action by Council on the abandonment.
Mr. Speed moved to recommend approval of staff’s recommendation and that the public hearing be set for June 24, 2002 at 7:30 p.m. (Attachment #4), seconded by Mr. Ritter and unanimously carried.
Mr. Ruane moved for adjournment, seconded by Mr. Speed and unanimously carried.
Meeting Adjourned at 7:17 P.M.
Respectfully submitted,
Carleton E. Carey, Sr.
Council President
CEC/jg
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