REGULAR COUNCIL MEETING
The Regular Council Meeting was held on June 25, 2001 at 7:30 p.m. with Council President McGlumphy presiding. Council members present were Mr. Ritter, Mr. Pitts, Mr. Gorman, Mr. Truitt, Mr. Carey, Mr. Speed, Mr. Salters, and Mr. Ruane.
Council staff members present were Chief Horvath, Mr. Cooper, Mr. DePrima, Mrs. Mitchell, Mr. Petit de Mange, Mrs. Green, and Mr. Rodriguez.
OPEN FORUM
The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President McGlumphy declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action.
Mr. John Paradee, Esq. - Prickett, Jones & Elliott
Mr. John Paradee of Prickett, Jones & Elliott, advised members that he represents Eastern Shore Environmental (ESE). He referred to the discussion held during the Safety Advisory Committee Meeting earlier in the evening and stated that the Dover Air Force Base, while it has concerns with traffic and birds, is not opposed to the proposed ESE Solid Waste facility. Mr. Paradee stated that the Conditional Use Application which is currently before Kent County is the subject of almost a dozen lawsuits between his client and the Delaware Solid Waste Authority. Two suits were filed today, one in the Federal District Court, which raise a number of constitutional and commerce clause arguments. He cautioned that the City was about to interject itself into a very serious situation.
It was Mr. Paradee’s opinion that the City did not have land use jurisdiction for a Kent County Land Use Permit and felt that it would be a violation of his client’s Constitutional Rights for Council to pass judgement without having the facts before them and without providing his client notice and an opportunity to be heard. Mr. Paradee assured members that the County has a Conditional Use Application process and that Dover Air Force Base has submitted letters and is in the dialogue. It was his feeling that the City should not get involved with this process and allow Dover Air Force Base to speak for themselves.
Mr. David Anderson, 217 Cecil Street
Mr. Anderson congratulated the new members of Council and requested them to remember the issues they raised during the recent campaign. It was his hope that someone would investigate the possibility of forming a Human Rights Commission and that they would repeal the trash fee.
The Open Forum Closed at 7:35 P.M.
The invocation was given by Chaplain Wallace Dixon, followed by a moment of silence in memory of Reverend Rudolph Coleman and the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Mr. Gorman moved for approval of the agenda, seconded by Mr. Truitt and unanimously carried.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JUNE 11, 2001
The Minutes of the Regular Council Meeting of June 11, 2001 were unanimously approved by motion of Mr. Carey, seconded by Mr. Truitt and bore the written approval of Mayor Hutchison.
PUBLIC HEARING - VIOLATION OF THE DANGEROUS BUILDING ORDINANCE - 707 RIVER ROAD - GREGORY S. AND WILLIS A. POWELL
A public hearing was duly advertised for this time and place to consider a violation of the Dangerous Building Ordinance at 707 River Road, owned by Gregory S. and Willis A. Powell. Mr. DePrima stated that the property was declared dangerous in August 2000. He indicated that a letter was received from Mr. Willis Powell requesting a six (6) month extension until October 16, 2000 in order to repair the property. The extension was granted; however, the property was not repaired.
The property has been vacant and unattended for more than three (3) months and weather and lack of maintenance are accelerating the deterioration of the building. Mr. DePrima showed slides depicting the condition of the structure, which is a one-story single family home.
Staff recommended that City Council: 1) declare the property dangerous; 2) order the property repaired or demolished by July 6, 2001 by the owner or equitable owner at their own risk; 3) order the Building Inspector to cause the repair or demolition of the structure if not completed by the owner or equitable owner within ten (10) days of the date set by Council; and 4) order the City Manager, with the assistance of the City Solicitor, to cause the cost of repairs or demolition to be charged against the land on which the building exists as a municipal lien or cause such cost to be added to the tax duplicate as an assessment, or to be levied as a special tax against the land upon which the building stands, or to be recovered in a suit at law against the owner. The estimated demolition cost is $7,500.
Responding to Mr. Salters, Mr. DePrima stated that the two main issues with the property are deterioration and vagrancy as a result of the building being unattended. He indicated that the building will require exterior paint, repair to down spouts and facia, a new hot water heater, interior paint, and window repairs.
Council President McGlumphy declared the public hearing open.
Mr. Willis A. Powell, 208 Oakmont Drive, stated that when his parents passed away, the property was left to several family members, making it difficult to have the property repaired. He and his brother are now the only owners and his brother is cooperating fully.
Mr. Powell explained that once he received the extension, he contacted several contractors, none of which were able to begin the work before January 2000. He recently hired someone and is confident that the roof and doors replaced and the windows repaired so that the building is secure prior to July 6, 2001; however, he did not feel it would be possible to have the house completely repaired by that date.
Responding to Mr. Salters, Mr. DePrima stated that Council did have the authority to grant an extension. He suggested ordering that repairs to the property begin by July 6, 2001, with a completion date of October 6, 2001. Mr. Powell assured members that all work could be completed by October 6, 2001.
Council President McGlumphy declared the public hearing closed.
Mr. Salters moved that the property located at 707 River Road be declared a dangerous building; that the owner of the property be ordered to begin repairs, at their own risk, by July 6, 2001, with completion of the repairs by October 6, 2001; that the Building Inspector be ordered to cause the repair or demolition of the structure if not completed by the owner or equitable owner within ten (10) days of the date set by Council; and that the City Manager be ordered, with the assistance of the City Solicitor, to cause the cost of repairs or demolition to be charged against the land on which the building exists as a municipal lien or cause such cost to be added to the tax duplicate as an assessment, or to be levied as a special tax against the land upon which the building stands, or to be recovered in a suit at law against the owner. The motion was seconded by Mr. Carey and carried by a unanimous roll call vote.
LEGISLATIVE AND FINANCE COMMITTEE REPORT
The Legislative and Finance Committee met on June 11, 2001 with Chairman Gorman presiding.
Proposed 2% COLA Increase
Members of the General Employees Pension Board recently discussed the possibility of providing retirees with a 2% COLA increase and requested that staff review the figures to determine if an increase would be feasible. As a result, the Finance Director/Treasurer, Mrs. Mitchell, indicated that a 2% increase would result in an annual cost of $35,000 to the pension fund. Based on their review, staff recommended that a 2% COLA increase be given to all retirees receiving benefits prior to December 31, 2000, to become effective July 1, 2001. During the General Employees Pension Board Meeting of May 14, 2001, members recommended approval of staff’s recommendation.
The committee recommended approval of a 2% COLA increase for all retirees receiving benefits prior to December 31, 2000, to become effective July 1, 2001, as recommended by the General Employees Pension Board.
Mr. Gorman moved for approval of the committee’s recommendation, seconded by Mr. Ruane and carried by a unanimous roll call vote.
Proposed Ordinance Amendment - Section 18-26(b) - Additional 2% Per Annum COLA Increase
During the Police Pension Board Meeting of March 27, 2001, the following motion was made and passed by a majority vote: “that the current 2% per annum increase given to retired members of the Dover City Police Department pursuant to Section 18-26(b) of the Dover Code be increased by an additional 2% which shall serve as a supplement to the original 2%. However, this additional 2% is contingent upon the financial stability of the plan and shall be automatically reviewed by the Pension Committee based upon either an unfavorable actuary study or the discontinuance of the current COLA funding received from the State. The effective date of this increase will be January 1, 2002. Nothing contained herein precludes the City of Dover from applying for additional funds to cover this 2% increase.”
As a result of the Board’s action, members considered a proposed ordinance amendment as prepared by the City Solicitor.
During the committee meeting, Mrs. Mitchell, Finance Director/Treasurer, provided members with additional details and concerns of the City’s Auditor. She explained that the proposed amendment would create $3.9M in unfunded liability for the City, which would be required to be disclosed and amortized. It was also felt that the proposed ordinance, as written, would not specifically require an annual review of the additional 2% retirement benefit. Mrs. Mitchell also advised members that according to Mr. Craik with the State Pension Office, the State’s money provided for this benefit has a reversion clause with a five year return. Only $300,000 is currently available for the City, which will only be available for an additional one to two years. She stated that Mr. Craik has suggested that members meet with him prior to taking action regarding this matter.
Ret. Lt. Mullaney, member of the Police Pension Board, advised members that he had consulted with Mr. Craik prior to the Pension Board Meeting and had obtained different information than what was just relayed by the Finance Director. He assured members that the Board does not want to take action that could adversely affect police officers’ retirement benefits and suggested that the matter be referred back to the Pension Board for further review and that a meeting be held with Mr. Craik to clarify the discrepancies.
Ret. Lt. Mullaney also referred to Section 18-24(d) of the Dover Code which indicates that all monies received by the City that are earmarked for Police Pension must be given to the Police Pension Board. For some reason, this procedure has been diverted by the Finance Department in recent years without the Board’s approval and he felt that the finance policy should be reviewed in this regard.
The committee recommended denial of the proposed ordinance amendment presented by the Police Pension Board.
Mr. Gorman moved for approval of the committee’s recommendation, seconded by Mr. Ruane and unanimously carried.
Downtown Dover Business Improvement District - Assessment (Tax) Rates for FY 2001-2002
In accordance with Appendix D, Article III, Section 9(f) of the Dover Code (Downtown Dover Business Improvement District Ordinance), an annual budget and assessment must be adopted each year. For informational purposes, staff also provided members with the total revenues and expenses of Main Street Dover, Inc. for 2000-2001 Revised and 2001-2002 Proposed. Staff recommended approval of the proposed budget ordinance for Downtown Dover BID and the Assessment (Tax) Rates for FY 2001-2002, as follows:
Zone 1 Zone 2 Zone 3 TOTAL
Assessment Tax Rate
Per $100 Assessment 0.145 0.1025 0.035 —
Revenue Raised $21,500$17,200$4,300 $43,000
% Revenue Raised 50% 40% 10% —
Number of Parcels 136 129 58 323
Average Assessment $158 $133 $74 $122
The Committee recommended approval of the budget ordinance and the assessment (tax) rates for FY 2001-2002 for the Downtown Dover BID as recommended by staff.
Mr. Gorman moved for approval of the committee’s recommendation, seconded by Mr. Salters and unanimously carried. (The First Reading of the ordinance will take place during the latter part of the meeting).
Request to Lease - New Case 621C Front End Loader
The Public Works Department currently owns and maintains two front end loaders as a part of the equipment fleet for the Street Division. Loaders are used for various purposes including hot mix patching, leaf collection and composting, material delivery, and snow removal. Over the last six months both loaders, Vehicle #312 -1983 Clark 35C loader and Vehicle #318 -1988 Michigan L70C loader, have been evaluated and require extensive repairs in order for the equipment to be safe for operation. The repairs total $41,401.00 for Vehicle #312 and $28,270.06 for Vehicle #318.
During the revised budget process, staff requested funds to purchase a new loader from the State of Delaware, Department of Transportation’s statewide contract. The vendor for the statewide contract, Folcomer Equipment Corporation, provided the following quote:
Case 621C Loader $83,035.00
Additional Equipment: Air Conditioner3,500.00
and substitute 4 in 1 Multi-Purpose Bucket$ 4,800.00
TOTAL $91,335.00
In addition, Folcomer Equipment Corporation has evaluated the existing equipment (Vehicles #312 and #318) and offered a trade-in value of $8,500.00 per loader. A 60 month municipal lease option was requested at a 5.75% interest rate, with yearly payments in the amount of $17,456.46 (6 payments), and with the City purchasing the equipment at the end of the leasing period for $1.00. The lease/purchase analysis indicated a $6,693 differential in favor of a lease agreement versus the purchase of a new loader.
Staff recommended awarding the lease agreement for a Case 621C Loader to Folcomer Equipment Corporation for the lease price of $20,384.39 annually for five (5) years; with the first payment to be in the amount of $3,384.39 ($20,384.39 less trade in value of $17,000.00 for Vehicles #312 and #318).
During the committee meeting, members raised several questions regarding the proposed lease purchase. Responding, Mr. Koenig explained that the information presented in the action form was developed a few months ago. Since then, there have been some changes, including the reduction of the number of years for the lease agreement and elimination of air conditioning. Since the information contained in the action form is substantially different from staff’s recommendation, prior to taking any action on this matter, members felt that staff should provide the appropriate information regarding the lease purchase of the front end loader.
The committee tabled action to allow staff to provide the appropriate information regarding the lease purchase.
During the committee meeting held earlier this evening, members considered staff’s request to purchase a new loader from the State of Delaware Department of Transportation’s statewide contract. Folcomer Equipment Corporation, the vendor for the statewide contract, submitted the following quote:
Case 621D Z-Bar Front End Loader - $83,035.00
Additional Equipment: 4-in-1 Multi-Purpose Bucket - $ 4,800.00
Total $87,835.00
In addition, Folcomer Equipment Corporation has evaluated the existing equipment (Vehicle #312 and Vehicle #318) and offered a trade-in value of $8,500 per machine. Mrs. Mitchell, Finance Director/Treasurer, provided members with a discounted cash flow analysis which indicates a savings of $2,489 in favor of leasing. Lease payments for this equipment are included in the FY2002 Streets Department budget. Mrs. Mitchell reminded members that the Finance Department is in the process of developing a Master Lease Agreement to be utilized for all City lease purchases.
The committee recommended approval of staff’s recommendation to award the purchase of one new Case 621D Z-Bar Front End Loader to Folcomer Equipment Corporation, in the amount of $70,835.00 ($87,835.00 less the trade-in value of $17,000.00 for the two used machines), stipulating that the purchase will be financed through the City’s Master Lease Agreement.
Mr. Gorman moved for approval of the committee’s recommendation, seconded by Mr. Carey and carried by a unanimous roll call vote.
Replacement of a 1950 Allis Chalmers Generator at the Warehouse
There is a 1950 Allis Chalmers Generator that provides backup power to the Warehouse, Fleet Maintenance, and the fuel pump operations. Oil sampling was conducted and revealed antifreeze was mixed with the oil. Alban Tractor Company inspected the generator and determined that antifreeze was dripping off the number six-rod cap. Unfortunately, they could not determine the exact location inside the engine where the coolant was coming from. This inspection cost $1,061.61 and Alban Tractor indicated that an additional $5,000 would be required in order for the engine to be dismantled to determine the repairs required. They estimated that the repairs would cost between $10,000 and $15,000 to completely reassemble and repair. Due to the age of the generator, staff was advised that parts for the generator would be very difficult to obtain and may not be available.
Staff recommended approval of It was noted that the increase kilowatts is necessary to provide added backup power to the warehouse, fleet maintenance shop, and fuel pumping station. Members were advised that there is a 10-week delivery time and that City staff will install the generator.
The committee recommended approval of staff’s recommendation.
Mr. Gorman moved for approval of the purchase of a 250kw generator from Alban Tractor Company, Inc., with a trade-in for the 1950 Allis Chalmers generator in the amount of $1,500, for a total cost of $26,140, as recommended. The motion was seconded by Mr. Salters and carried by a unanimous roll call vote.
Mr. Gorman moved for acceptance of the Legislative and Finance Committee Report, seconded by Mr. Salters and unanimously carried.
UTILITY COMMITTEE REPORT
The Utility Committee met on June 11, 2001 with Chairman Ruane presiding.
Kent County Wastewater Adjustment Charge
The City of Dover participates in a countywide agreement with Kent County to provide transmission and treatment services for all wastewater flows generated by the City. This charge, known as the Kent County Wastewater Adjustment Charge, is included on the utility bills of all City of Dover wastewater customers. The charge covers expenses incurred for the transmission and treatment of sanitary sewage flows produced by the City and its customers.
Kent County has set the charge of $1.85 per thousand gallons for the 2002 fiscal year which begins on July 1, 2001. The new rate was adopted by Kent County Levy Court on April 25, 2001, with the adoption of their FY 2002 Budget. Since this charge is considered a “pass through charge”, the City must increase the Kent County Wastewater Adjustment Charge itemized on the utility bill from $1.68 to $1.85 per thousand gallons of usage. This proposed increased charge is necessary to cover the deficit in the Wastewater Adjustment Fund that will result from the increased rate charged by Kent County for transmission and treatment services. The average monthly cost per household based on a usage of 7,000 gallons per month will be $1.19 (7 units x $0.17/unit) and an annual cost will be $14.28.
The County’s rate increase will become effective for all flows generated by the City and its customers for the July 2001 billing cycle; therefore, the rate increase will be effective July 1, 2001 and all bills with usage after July 1, 2001 will include the new rate of $1.85 per thousand gallons of usage. Bills that include usage before July 1, 2001 and after July 1, 2001, will be prorated accordingly.
The committee recommended that the Kent County Wastewater Adjustment Charge be increased from $1.68 to $1.85 per thousand gallons to be reflected on all utility bills with a “bill date” on or after July 1, 2001, as recommended by staff.
Mr. Ruane moved for approval of the committee’s recommendation, seconded by Mr. Speed and carried by a unanimous roll call vote.
Acceptance of Dedication of Public Open Space, Rights-of-Way, and Utilities - Westwind Meadows Subdivision
Members considered a request from the Gilman Development Company, developer of the Westwind Meadows Subdivision, for the acceptance of dedication of the public open space, rights-of-way, and utilities constructed for this subdivision. This 66-unit townhouse subdivision is located on the west side of Kenton Road between Greenway Lane Condominiums and the Mallard Pond Subdivision. Members were provided a map depicting the general location and configuration of the subdivision. After construction was completed, City staff inspected all of the public improvements and provided the developer with a list of repairs to be made to meet City standards and specifications. All work associated with the construction of the subdivision has been completed and as-built drawings of the public improvements have been submitted.
Staff recommended acceptance of the dedication of the Westwind Meadows Subdivision to include the following public improvements:
Utilities
8" PVC Sanitary Sewer Main - 1,098 l.f.
6" PVC Sanitary Sewer Laterals - 2,310 l.f. (66 laterals)
4' Diameter Sanitary Sewer Manholes - 5 each (26.81 vertical feet)
8" Ductile Iron Water Main - 742 l.f.
6" Ductile Iron Water Main - 255 l.f.
8" Gate Valves - 2 each
6" Gate Valves - 1 each
6" Hydrant Valves - 1 each
Fire Hydrants - 1 each
2" Blow Off Assemblies - 1 each
Catch Basins - 9 each
Storm Water Manholes - 1 each
15" R.C.P. Storm Water Pipe - 349 l.f.
18" R.C.P. Storm Water Pipe - 144 l.f.
22" x 33" R.C.P. Storm Water Pipe - 555 l.f.
14" x 23" R.C.P. Storm Water Pipe - 76 l.f.
Roads
Periwinkle Court - Station 0 + 00 to Station 2 + 29 (229 linear feet)
Periwinkle Drive - Station 0 + 00 to Station 6 + 04 (604 linear feet)
Public Open Space
0.62+/- Acres
The committee recommended acceptance of the dedication of public open space, rights-of-way, and utilities for the Westwind Meadows Subdivision, as recommended by staff.
Mr. Ruane moved for approval of the committee’s recommendation, seconded by Mr. Speed and carried by a unanimous roll call vote.
Request to Purchase Steel Structures and Construction Materials for the Proposed Dover Downs Substation Addition
Due to the planned additions to the Dover Downs Raceway (1,000 slots, 20,000 grandstand seats, and a 500 room hotel) and the continued growth in the northwest area of Dover, a new substation is required to accommodate the increase in electric load. These additions to Dover Downs will impact the distribution system considerably and additional capacity is required. Dover Downs has indicated that the increase in load is estimated to be up to 8 megawatts.
The plan is to construct a 20/28/33 MVA 69/12KV four circuit distribution substation on Dover Downs property. Due to the cost and extended delivery time, the request for the transformer purchase has been submitted, approved, and purchased. It is now necessary to purchase the steel structures, poles and insulators, instrument transformers and construction materials. In the near future, an additional request will be submitted for approval of the construction services.
Duke Engineering and Services has been retained to negotiate the best possible price with Rumsey Electric Company (local area distributor) on behalf of the City for the structures and construction materials required, similar to what they have done with the substation transformer, switchgear and circuit switcher, and disconnects in the past. Duke submits a recommendation on bid acceptance based on specification compliance and price and provides all documentation (at additional cost) to conform to the City’s purchasing policy. Rumsey Electric Company is the sole supplier for the major components in the steel structures.
As a result of the negotiations, staff recommended approval of the purchase of the steel structures and construction materials from Rumsey Electric Company in the amount of $222,221, with a 19 week delivery time, as recommended by Duke Engineering and Services.
The committee recommended approval of staff’s recommendation.
Mr. Ruane moved for approval of the purchase of the steel structures and construction materials from Rumsey Electric Company in the amount of $222,221, with a 19 week delivery time, as recommended. The motion was seconded by Mr. Carey and carried by a unanimous roll call vote.
Evaluation of Bids - 2001 Curb Replacement Program (Contract #2001-103)
In conjunction with the City’s Capital Investments Plan, it is proposed to repair or construct 5,311 linear feet of curb and 53,783 square feet of various depth miscellaneous concrete flat work on selected streets and parking areas in the City, as follows:
Fiddlers Green
Turnberry Drive
Continental Drive
Hiawatha Lane
Roosevelt Avenue
George Washington Drive
U.S. 13 Sidewalk
Pine Street
Lotus Street
E. Loockerman Street
Clara Street Extended
City Hall Parking Lot
Bradford Street Parking Lot
City Hall Employees Parking Lot
Greenway at Silver Lake Recreation Area
Wyoming Avenue Sidewalk Connection
Yearsley Drive Sidewalk Connection
Although these areas were included in the bid, actual work is to be completed contingent upon available funding. Bids were received from Stripe-A-Lot, Inc. (Wilmington, Delaware) in the amount of $384,122.40 and Coker Concrete (Dover, Delaware) in the amount of $426,984.95. Due to the amount of work and the historical performance of various contractors on this annual unit price contract, staff recommended awarding two separate unit price contracts for the 2001 Curb Replacement Program to Stripe-A-Lot, Inc. in the amount of $192,061.20 and Coker Concrete in the amount of $213,492.48.
It was noted that funding is available in the Street Department budget and is contingent upon Suburban Street Aid Agreements.
During the committee meeting, Mr. Koenig explained that two separate unit price contracts have been awarded in previous years and it has proven to be beneficial. He stated that it is necessary to have the curb work done in order to proceed with the paving for the street program. He stated that the contract was written specifically for working calendar days. With the contractors given the “notice to proceed”, work should begin July 9th and the concrete program completed October 6th, which is exactly 90 calendar days.
Mr. Nichols noted that the State’s specifications allow for liquidated damage charges on a calendar day in the amount of $150 per day and on a workday, $210 per day, and that staff is proposing a $500 per day for liquidated damages regardless of the day. In response to Mr. Nichols, Mr. Koenig stated that liquidated damages were not assessed in the past because the scope of work that was identified in the original project specifications were substantially changed after the contract was awarded. These changes were the result of accommodating additional monies received from local legislators for specific areas in addition to those proposed or because additional projects were added after the scope of work was developed. It was his feeling that since these changes occurred after the contract was awarded, it would not be fair to assess the contractor for liquidated damages.
The committee recommended awarding two (2) separate contracts for the 2001 Curb Replacement Program to Stripe-A-Lot, Inc. and Coker Concrete. The total amount awarded to each contractor will be based on the unit price bid and the amount of work completed by each contractor and accepted by the City of Dover. The quantity of work will be allocated by the Public Work’s Director using the unit price bid of the respective contractor. In accordance with the agreement between the City of Dover and the contractor, liquidated damages in the amount of $500.00 per day will be levied against the appropriate contractor for each day in excess of the ninety (90) calendar day contract period; and, any contractor who fails to perform in accordance with the bid specifications will have his contract terminated. The total combined contract awards will not exceed $405,553.68 unless the bid quantities are altered by the City of Dover. Funding for these locations is contingent upon Suburban Street Aid Agreements and the FY 2002 Street Department Operating Budget.
Mr. Ruane moved for approval of the committee’s recommendation, seconded by Mr. Speed and carried by a unanimous roll call vote.
Mr. Ruane moved for acceptance of the Utility Committee Report, seconded by Mr. Speed and unanimously carried.
SPECIAL LEGISLATIVE AND FINANCE COMMITTEE REPORT
The Legislative and Finance Committee met on June 19, 2001 with Chairman Gorman presiding.
Evaluation of Proposals - Liability and Property Insurance
Bids for liability and property insurance were solicited from two (2) brokers: L & W Insurance Agency (City’s current broker) and Commerce National/J.A. Montgomery and received as follows: