COUNCIL COMMITTEES
The Council Committees Meeting was held on June 11, 2001, at 6:00 p.m., with Council President McGlumphy presiding. Members of Council present were Mr. Ritter, Mr. Pitts, Mr. Gorman, Mr. Truitt, Mr. Carey, Mr. Speed (arrived at 6:05 p.m.), Mr. Salters, Mr. Ruane, and Mayor Hutchison.
AGENDA ADDITIONS/DELETIONS
Mr. Ruane requested that item #1 on the Utility Committee agenda be considered last (as item #4). Mr. Gorman moved for approval of the agenda as amended, 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.
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.
Mr. Salters moved to recommend that a 2% COLA increase be provided to all retirees receiving benefits prior to December 31, 2000, to become effective July 1, 2001, as recommended by the General Employees Pension Board. The motion was seconded by Mr. Ruane and unanimously carried.
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.
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. Craig with the State Pension Office, the State’s money provided for this benefit has a reversing 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. Craig 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. Craig 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. Craig 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.
After much discussion, Mr. Ruane moved to recommend denial of the proposed ordinance amendment presented by the Police Pension Board, seconded by Mr. Salters 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
Mr. Salters moved to recommend approval of the budget ordinance (Attachment #1) and the assessment (tax) rates for FY 2001-2002 for the Downtown Dover BID as recommended by staff. The motion was seconded by Mr. Ruane and unanimously carried.
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 $83,035.00
Additional Equipment: Air Conditioner 3,500.00
and substitute 4 in 1 Multi-Purpose Bucket$ 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.
Responding to Mr. Truitt, Mr. Koenig explained that the initial proposal submitted by the equipment supplier contained an error which indicated that the lease would be for six (6) years; a revised proposal has been received indicating that the lease would be for a total of five (5) years.
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).
Mrs. Mitchell, Finance Director/Treasurer, advised members that she is in the process of developing a lease policy for the City, explaining that Mellon Bank currently offers a much better interest rate, 4.17%, for leasing.
In response to Mr. Ruane, Mr. Koenig stated that the air conditioner has been eliminated, which reduced the total amount of the lease purchase to $87,835.00.
Responding to Mr. Salters, 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, Mr. Salters felt that staff should provide the appropriate information regarding the lease purchase of the front end loader.
Noting that this item will be presented for consideration at the next Council Meeting and that a committee meeting will be held prior to the Council Meeting, Mr. DePrima suggested that a revised action form be presented to the committee at the next meeting and that final action could occur when presented to Council at their next meeting.
Mr. Gorman moved to table action to allow staff to provide the appropriate information regarding the lease purchase. The motion was seconded by Mr. Salters and unanimously carried.
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.
Bids were solicited for a new generator from Roy’s Electric of Cheswold, Delaware, and Alban Tractor Company, Inc. of Elkridge, Maryland and received, as follows:
1)Roy’s Electric quoted $25,680 for a 175kw generator to replace the 200kw warehouse generator.
2)Alban Tractor Company, Inc. quoted $27,640 for a 250kw generator and will give a $1,500 as a trade-in for the old generator, resulting in a total cost of $26,140.
Funding has been provided in the Support Services Department Budget. A budget revision in the amount of $35,000 has been included in the final revision for FY2001. Members were advised that Alban Tractor indicated that there would be a 10-week delivery time and that City staff will install the generator.
Staff recommended approval of the purchase of a 250kw generator, with a trade-in for the 1950 Allis Chalmers generator in the amount of $1,500, for a total cost of $26,140. It was noted that the increase kilowatts is necessary to provide added backup power to the warehouse, fleet maintenance shop, and fuel pumping station.
Responding to Mr. Ritter, Mr. Koenig stated that the generator was used during the last ice storm in 1994 and explained that although it is rarely used, its need is critical and there is no way of knowing when that need may arise.
Mr. Salters moved to recommend approval of the purchase of a 250kw generator, 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 by staff. The motion was seconded by Mr. Ruane and unanimously carried.
Mr. Salters moved for adjournment, seconded by Mr. Ruane and unanimously carried.
Meeting Adjourned at 6:38 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Ruane presiding. Members present were Councilmen Speed and Truitt, Mr. Lambert, and Mr. Nichols.
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.
Staff 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.
Mr. Speed moved to recommend approval of staff’s recommendation, seconded by Mr. Nichols and unanimously carried.
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
Mr. Truitt moved to recommend acceptance of the dedication of public open space, rights-of-way, and utilities for the Westwind Meadows Subdivision as recommended by staff. The motion was seconded by Mr. Lambert and unanimously carried.
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.
Mr. Ruane noted that according to the Finance Director/Treasurer, there are sufficient funds in the current fiscal year’s budget and that the costs for the required labor has been included in next fiscal year’s budget.
Mr. Nichols moved to recommend approval of staff’s recommendation, seconded by Mr. Lambert and unanimously carried.
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. and Coker Concrete, as follows:
Stripe-A-Lot, Inc. - $192,061.20 Coker Concrete - $213,492.48
It was noted that funding is available in the Street Department budget and is contingent upon Suburban Street Aid Agreements.
Mr. Koenig explained that two separate unit price contracts have been awarded in previous years and it has proven to be beneficial. Concurring with Mr. Lambert, he stated that it is necessary to have the curb work done in order to proceed with the paving for the street program.
Responding to Mr. Nichols, Mr. Koenig 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. He also stated that the City has previously entertained requests to work on weekends in areas that would not be disruptive. Concurring with Mr. Nichols, Mr. Koenig stated that the work involves a very aggressive program. Although this contract is being submitted late, it was staff’s feeling that rather than awarding a 150 calendar day contract, the concrete work needs to be done by the beginning of October to ensure that the paving work is completed. It is realized that the schedule is tight and the contractors may have difficulty in meeting the time requirements; however, he assured members that the bids were received based on these specifications. The contractors have either submitted a bid bond or cashiers check, which is required, a performance bond equal to 100% of the contract, and after completion of the contract, there is a one-year guarantee for 10% of the contract price.
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. He noted 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.
Mr. Nichols moved to recommend 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. The motion was seconded by Mr. Lambert.
Mr. Speed suggested that the motion include the following additional sentence: “Funding for these locations is contingent upon Suburban Street Aid Agreements and the FY 2002 Street Department Operating Budget”. The motion maker agreed to the amendment, as did the seconder.
The motion to award two separate contracts for the 2001 Curb Replacement Program as stipulated and amended, was unanimously carried.
Mr. Truitt moved for adjournment, seconded by Mr. Nichols and unanimously carried.
Meeting Adjourned at 7:25 P.M.
Respectfully submitted,
William P. McGlumphy
Council President
WPM/jg
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