COUNCIL COMMITTEES
The Council Committees Meeting was held on October 8, 2001, at 6:30 p.m., with Council President McGlumphy presiding. Members of Council present were Mr. Ritter, Mr. Pitts, Mr. Gorman, Mr. Truitt, Mr. Carey, Mr. Salters, Mr. Ruane, and Mayor Hutchison. Mr. Speed was absent.
AGENDA ADDITIONS/DELETIONS
Mr. Gorman moved for approval of the agenda, seconded by Mr. Truitt and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Gorman presiding. Members present were Councilmen Ruane and Salters, Mr. Snaman, and Mrs. Street.
Request to Purchase 6-Wheel Dump Truck (State Contract)
The Department of Public Works currently owns and maintains one (1) medium duty 6-wheel dump truck (Vehicle #424) as part of the equipment fleet for the Construction Division for various purposes, including utility construction, material transport & delivery, and snow removal. The truck scheduled for replacement is a 1985 GMC dump truck (Odometer Reading: 91,447 miles, Hour Meter Reading: 470 hours, which is not the original meter). Comprehensive maintenance records for this truck are not available. Staff met with a representative of Bayshore Ford Truck Sales, Inc., the vendor for the State of Delaware Department of Transportation, and developed a total price using the statewide contract (Contract #21-800-01A). Bayshore Ford Truck Sales, Inc. submitted the following quote:
Sterling L7500 Truck Chassis: $49,189.00
- Solid Steel Dump Body with a Hoist:$22,270.00
- Snow Plow Package: $ 7,321.00
Total Price: $78,780.00
Funds for the purchase of the truck are included in the FY 2002 Construction Division budget. The purchase of the equipment will be financed using the City’s Master Lease Agreement.
Staff recommended that a purchase order be issued to Bayshore Ford Truck Sales, Inc., in the amount of $78,780 for the purchase of a Sterling L7500 truck chassis, solid steel dump body with a hoist and a snow plow package, to be financed using the City's Master Lease Agreement.
Responding to Mr. Salters, Mr. DePrima stated that purchases from the State Contract did not allow for trade-ins and the 1985 GMC dump truck would be sold at the City’s annual auction. He indicated that retaining the old vehicle in the fleet would only increase repair costs.
Council President McGlumphy questioned whether or not the maintenance shop kept comprehensive records on City vehicles. Mr. Koenig, Public Works Director, reminded members that there have been several changes to the vehicle maintenance shop over the years and that, unfortunately, prior vehicle maintenance records are inconsistent. Maintenance records are now kept according to the State Records Retention Schedule. Council President McGlumphy emphasized that large purchases would warrant closer scrutiny in the future and maintenance records would be important in the decision making process.
Mr. Salters questioned the assignment of vehicle purchases for consideration by Council Committees. Mr. DePrima indicated that purchases directly related to utilities, such as water, sewer, or electric are typically considered by the Utility Committee and that other purchases are considered by the Legislative and Finance Committee. Mrs. Green, City Clerk, further explained that the Dover Code specifies the functions of each Council Committee, which determines the assignment of agenda items. It was suggested that these sections of the Dover Code be reviewed for possible amendment to better clarify these matters.
Responding to Mr. Ritter, Mrs. Mitchell indicated that the lease would be for four (4) years.
Mr. Ruane moved to recommend approval of staff’s recommendation for the purchase of a Sterling L7500 truck chassis, solid steel dump body with a hoist and snow plow package from Bayshore Ford Truck Sales, Inc. in the amount of $78,780.00 using the City’s Master Lease Agreement. The motion was seconded by Mr. Salters and unanimously carried.
Compensation to Committee Members
Mr. Gorman advised members that he was recently contacted by an appointed member of the Board of Adjustments questioning compensation for members who are appointed to serve on a City committee other than those currently provided compensation in accordance with the Dover Code. As a result, City Solicitor Rodriguez submitted an opinion which indicated that the omission of payment to certain committees did not indicate an intent that those excluded should never receive compensation. He also indicated that there was no requirement that compensation be the same or consistent for different committees.
Members were provided a list of all committees, commissions, and boards that have been established and whose members are appointed by Council, as well as a copy of Section 2-70 of the Dover Code whereby compensation and expenses for mayor, council, employees and other elected or appointed officials is addressed. Mr. Gorman noted that the Dover Code specifically indicates that the Ethics Commission and Awards Committee shall serve without compensation.
In reviewing the listing of the various committees, Mr. Gorman noted that some committees act in an advisory capacity and others make decisions that are final. Taking this into consideration, he felt that consideration should be given to providing a stipend for those members that serve on committees with decision making responsibilities, as follows: Board of Adjustments, Dover Parking Authority, Downtown Dover Development Corporation, and Housing Code Board of Appeals.
Mr. Ruane, referring to Section 2-70, paragraph (6), asked what constitutes a “city council committee”. Mrs. Green, City Clerk, explained that the city council committees consisted of the four (4) standing committees that report to Council: 1) Legislative and Finance; 2) Parks and Recreation; 3) Safety Advisory; and 4) Utility. It was Mr. Ruane’s feeling that there needed to be a common definition for the commissions and boards and the issue of fairness should be addressed. He also noted that additional compensation would create a substantial financial impact on the budget.
Mr. Pitts recalled a time when many of the current committees did not exist. At that time, money was not a factor, only a desire to serve. He indicated that some of the members that serve on these committees, such as the Dover Housing Authority, Downtown Dover Development Corporation, and Dover MPO, are appointed by the Governor and questioned how a payment would be arranged for those committee members.
After much discussion, Mr. Salters moved to table the matter indefinitely; however, the motion failed for lack of a second.
Mr. Salters moved to table this matter for further review, seconded by Mr. Ruane and unanimously carried.
Mr. Ruane offered his assistance in developing a proposal for consideration.
Mr. Snaman moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 6:59 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Ruane presiding. Members present were Councilman Truitt, Mr. Lambert, and Mr. Nichols. Mr. Speed was absent.
Evaluation of Bids - Material Handling Aerial Truck (Vehicle #766)
Staff solicited bids for the replacement of a 1989 International with a Telelect T5051 aerial device (vehicle #766). Although this vehicle was proposed to be replaced in FY 2003, in preparing the bid packages for the replacement of vehicle #779, which is scheduled for replacement in FY 2002 and an amount of $135,000 has been budgeted, it was discovered that vehicle #766 had been refurbished before vehicle #779 and should be replaced first. Bids for the purchase of a material handling aerial truck were received as follows:
Baker Equipment - Richmond ,VA $153,140 with trade
Altec Industries - Plains, PA $134,674 with trade
Lift All East - Bethlehem, PA $132,930 with trade
Bayshore Ford - New Castle, DE $132,387 with trade
The minimum bid specification for the lower boom lay over is 105 degrees; anything lower is unacceptable and any degree greater provides better performance. Although Altec was not the low bidder, their vehicle exceeded the bid specifications with a lower boom lay over at center of 115 degrees and a boom design that provides more reach all the way around the unit. Their boom also has a safety latch for the upper boom in the stowed position, while the others did not. Altec also uses a powder coat on the metal parts of the boom, which will last much longer than the other manufacturers’ painted products. Altec's hydraulic bucket levelers require no mandatory maintenance, while the other suppliers use rod and chains that require costly five-year maintenance. Altec also has a mobile maintenance department that can provide for on-site repair.
Funding is available in the current Electric Department budget under the Master Lease Agreement for vehicles.
Staff recommended approval of the lease of the material handling aerial truck from Altec Industries, in the amount of $134,674, including trade.
Mr. Nichols moved to recommend approval of staff’s recommendation, seconded by Mr. Gorman and unanimously carried.
Purchased Power Adjustment
Mr. DePrima, Interim City Manager, explained the intent of the purchase power adjustment, which is to adjust the rate charged to all electric customers based on the cost to purchase power. The adjustment was originally known as a "fuel adjustment"; however, in September 1996, Council changed the name to "purchase power adjustment" to reflect the purchase power agreement the City made with Duke during FY 1995/96. Under the purchase power agreement with Duke, our cost of electricity is based on fixed costs with an annual increase. Mr. DePrima reminded members that in accordance with City Council’s approval of the FY 2001/02 Budget, staff was authorized to move forward with the resetting of the purchase power adjustment credit from .0037 kWh to .0000 kWh, effective with billings on or after November 1, 2001.
The resetting of the credit puts the projected electric revenue in balance with projected electric operations. This change forecasts a revenue increase of $1,723,492.68 for the remainder of FY 2001/02 and $2 million per year thereafter, based on current usage trends. The impact of this change would be a 3.99% increase in electric charges. The cost to a residential customer using 1,000 kWh per month would increase by $3.70 per month ($44.40 annually) over the current cost of $92.70 (summer rate). With the effective increase, the City is still competitively priced compared to utility prices that are regularly monitored.
This purchase power increase represents a 16.57% increase in cost to the City. However, over the years, the purchase power adjustment was not used to compensate for the increasing cost; instead, the City relied on growth in sales to compensate for increased costs. Over time it was impossible to support the regular cost increases solely through growth in sales; therefore, the purchase power adjustment becomes the appropriate way to adjust for increasing purchase power costs.
Staff recommended that the purchase power adjustment be set at $0.00 per kWh effective with billings on or after November 1, 2001.
Responding to Mr. Lambert, Mrs. Tieman, Administrative Services Director, stated that the City’s average rates are lower than Delmarva Power and Light, Conectiv, and the Delaware Electric Cooperative. They were not included in the rate comparison since they utilize a flat rate, year round, and the City utilizes winter and summer rates.
Mr. Lambert moved to recommend approval of staff’s recommendation, seconded by Mr. Nichols and unanimously carried.
Mr. Ruane moved for adjournment, seconded by Mr. Carey and unanimously carried.
Meeting Adjourned at 7:11 P.M.
Respectfully submitted,
William P. McGlumphy
Council President
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