COUNCIL COMMITTEES
The Council Committees Meeting was held on February 22, 1999, at 6:15 p.m., with Council President Christiansen presiding. Members of Council present were Mr. Lambert, Mr. Leary, Mr. Truitt, Mr. Carey, Mrs. Malone, Mr. Salters, and Mr. Weller. Mr. Pitts and Mayor Hutchison were absent.
AGENDA ADDITIONS/DELETIONS
Mr. Carey moved for approval of the agenda, seconded by Mrs. Malone and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Salters presiding. Members present were Councilman Leary, Councilwoman Malone, Mr. Gorman, and Mr. Merritt.
Consideration of Retirement Health Care Coverage - Kent County (City of Dover) Paramedics
During the committee meeting of January 25, 1999, members considered a letter submitted by Chief Colin Faulkner, Kent County Emergency Medical Services Department, requesting the City to reopen the structure for continuation of health insurance as established in the Paramedic Integration Agreement of 1991. As requested by Mr. O’Connor, the committee referred the matter to staff for further review and meetings with the paramedics and Kent County Levy Court officials.
Mr. O’Connor advised members that he met with Chief Colin Faulkner, Mr. Robert McLeod (Kent County Administrator), Mr. Steve Cimo (Accounting Director), and Mr. Allan Kujala (Human Resources Director) from the County to discuss the request. He stated that an agreement was signed when the paramedics were transferred from the City to the County, as required by the State Mandate. When the agreement was signed, the County agreed to provide premiums to the City’s Pension Plan for the paramedic employees that were transferred from the City to the County. These employees were permitted to continue under the City’s Pension Plan and would be provided credit for their years of service with the City, as well as credit for their years of service with the County.
Mr. O’Connor also advised members that the City provides a Health Insurance Plan for City employees retiring with 25 years of service. In accordance with the Paramedic Agreement, the County agreed to pay the health insurance premiums (at the City’s cost) for the years of service that the employees worked for the County. As an example, Mr. O’Connor stated that a County paramedic, age 46, who is eligible to retire and has nine (9) years of service with the County, will receive nine (9) years of paid premiums from the County; however, there will be ten (10) years (from age 55 to age 65) before Medicare will become effective. The employees have the option of purchasing health insurance coverage at the City’s group rate to cover this period. Mr. O’Connor stated that the paramedics are requesting that the City provide health insurance coverage during the period prior to Medicare benefits becoming effective.
Mr. O’Connor relayed concern with providing health insurance for the paramedics since City employees of the IBEW workers have had to take a reduction in pay over the next ten (10) years in order to receive health insurance coverage upon retirement. They are, in effect, currently paying for their retirement health care premiums. Another issue of concern is the possibility of the paramedics becoming State employees, which could provide them with additional options and benefits.
Mr. O’Connor stated that, as suggested by Mr. McLeod, the paramedics have the option to continue working additional years to assure insurance coverage until reaching age 65 when Medicare benefits would become available.
Mr. Leary advised members that this entire issue was discussed in 1991, including the lapse of health insurance coverage. At that time, it was stipulated that since it was due to State Legislation that City paramedics were transferred to the Kent County Emergency Medical Services as County employees, this issue should be addressed by the State and that the City should not be responsible for health insurance coverage.
Mr. Leary moved to recommend denial of the request of the Kent County (City of Dover) Paramedics for consideration of Retirement Health Care Coverage to be provided by the City. The motion was seconded by Mr. Salters.
Council President Christiansen stated that the City’s acceptance of the proposal in 1991 was based on the fact that the State promised to investigate the issue of insurance coverage. He stated that it would be a disservice to the City and the paramedics that worked faithfully for the City over the years if the issues are not resolved. Council President Christiansen suggested that the matter be tabled to allow staff to meet with Kent County and State of Delaware officials to assure that this issue is resolved. He stated that the City pioneered the paramedic program and had promised the paramedics that the City would take care of them in the transition.
Amending his motion, Mr. Leary moved to recommend that a letter be sent from the Council President, on behalf of the City of Dover, to State Legislators requesting that this issue be given their priority. Mr. Salters affirmed his second to the amended motion.
Mrs. Malone noted that the insurance premiums under the City’s group plan are very reasonable and reminded members that the paramedics have been offered this service by the City.
Mr. Toby Sitler, Kent County (City of Dover) Paramedic, advised members that the paramedics gave the City between 13 and 22 years of continuous service. As paramedics, they were under the impression that they would receive retirement health care benefits upon successful retirement from the City. The County is offering the paramedics health insurance coverage for each year of service with the County, as agreed to during the transition. Mr. Sitler referred to the City of Dover Handbook, page 252, section 2-197, titled City Paramedics Transferred to County, which states that “notwithstanding any other provision of this article, all persons employed by the City as paramedics who are transferred to the County Emergency Medical Services Department and who make a written election to remain in the City General Employee Pension Plan shall continue to be considered eligible employees within the meaning of the Pension Plan as long as they are employed by the County Emergency Medical Services Department. All pension benefits shall be calculated as if the paramedic had remained a City employee during his employment with the County Emergency Medical Services Department”.
Referring to the Retirement Benefits Section on page 39 of the handbook, Mr. Sitler read the following: “The City pension plans shall provide group hospital, surgical and health insurance coverage for retired employees and their families. The Plans pay 100% of each retiree’s individual coverage and 50% of the cost of dependent coverage.” Mr. Sitler requested that members consider this information when submitting their recommendation to Council.
On a call for the question by Mr. Leary, the motion to recommend that the request for consideration of Retirement Health Care Coverage for Paramedics be denied and that a letter from the Council President, on behalf of the City of Dover, be forwarded to State Legislators requesting that this issue be given their priority was unanimously carried.
Comprehensive Annual Financial Report - Fiscal Year 1998
As required by the City Charter, the City’s financial books are audited by independent auditors each year. Accordingly, the C.P.A. firm of Faw Caasson & Company has performed an audit of the books for fiscal year 1998. The financial statements representing all transactions are published in the Comprehensive Annual Financial Report.
The City’s Finance Director/Treasurer, Mr. Mike Karia, stated that it is the auditors opinion that the City has followed the generally accepted accounting principles and the financial statements represent a true and fair financial position of the City as of June 30, 1998. The auditors made a qualification in their certificate regarding the Year 2000 Issue. They have stated that they have not verified the details and are uncertain as to the impact. The City has made a detailed disclosure that Y2K is widespread and its full implications are unknown.
Mrs. Janice Nesterak of Faw Casson & Company stated that the City, as required under governmental accounting standards, has disclosed certain Y2K issues; however, as auditors they are not able to gather sufficient audit evidence related to the Y2K issue. The advice to qualify their opinion on the Y2K issue comes from the AICPA and is the standard qualification being used. Another variation in this year’s report, in response to a new governmental accounting standard, is that the City has changed its method of reporting investments. They are now required to be reported at fair market value. This necessitates recognizing appreciation and depreciation each year.
Mr. Leary made the observation that the City’s Outstanding General Obligation Debt was less than $7 million. He stated the Charter allows the City to carry debt up to 25% of the assessed property value, which would be in excess of $202 million today.
Mr. Salters stated that the City has received the Award of Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada (GFOA) for the last twelve (12) years and he is confident that the award will be received for this report as well.
Mr. Leary moved to recommend adoption of the Comprehensive Annual Financial Report for Fiscal Year 1998, seconded by Mrs. Malone and unanimously carried.
Purchase of Mobile Data Terminals
The Police Department received a State Grant for the purchase of Mobile Data Terminals. The terminals will be installed in 15 patrol cars and will be used to access the Department’s Computer Aided Dispatch System, the Records Maintenance System, and the statewide DELJIS System. Three (3) additional vehicles will be equipped with docking stations.
Staff recommended the purchase of 15 “Rocky II” Mobile Data Terminals, at a cost of $112,535, to be made directly from the manufacturer of the specified equipment, Amrel Inc. The New Castle County Police Department recently requested bids for this equipment and, as low bidder, Amrel, Inc. offered the equipment for the same price, which is below the available State Contract price, to the City of Dover. In addition, staff recommended the purchase of the required software, licenses, training, and support services from New World, Inc., the sole vendor for the Department’s CAD/RMS Computer System, at a price of $178,125. The in-car hardware and installation of the computers and hardware will be purchased from Delmarva Communications at the bid price of $7,884.
Chief Faulkner advised members that the Police Department has been approved for a State Grant in Aid for the expenditure of $261,608 for this project. The balance of $36,936 will be paid from funds that were received in December 1998 and are currently being held in the Local Law Enforcement Block Grant account. Although this project will not require budgeted funds to implement, the operation of the completed system will require expenditures of $674 per month for connection charges to Bell Atlantic.
Mr. Salters moved to recommend approval of the purchase of 15 “Rocky II” Mobile Data Terminals from Amrel, Inc., at a price of $112,535; the purchase of the required software, licenses, training, and support services from New World, Inc., at a price of $178,125; and the hardware and installation of the computers from Delmarva Communications at a bid price of $7,884, as recommended by staff. The motion was seconded by Mr. Leary and unanimously carried.
Purchase of Surveillance Van
The City continues to experience problems with illegal drug activities, prostitution, and other street crimes in a number of areas within the City. The Police Department has identified a need for a specially equipped vehicle for conducting surveillance operations to target the above-mentioned crimes. The Police Department has obtained grant funding from the State of Delaware in the amount of $80,120 to purchase a surveillance vehicle. The total grant consists of funds from the State Aid to Law Enforcement Grant in the amount of $70,120 and $10,000 from the State Law Enforcement Fund Grant. No matching funds are required and the purchase will not require the use of City funds.
Staff recommended the purchase of a 1999 Ford E-250 Econoline Surveillance Van fully equipped with the latest in surveillance equipment and technology from the Sirchie Group, Vehicle Division, located in Medford, New Jersey at a cost of $80,120. The Sirchie Group is the sole vendor/specialty supplier which offers complete vehicle design and all required equipment and training on the use of the equipment. Chief Faulkner advised members that the other vendor for this equipment is located in Michigan and requires the purchaser to design the vehicle layout. The City previously purchased an Evidence Processing Van from the Sirchie Group and is satisfied with the company. The State Police purchased two (2) similar vehicles from the Sirchie Group and they too are satisfied.
Mr. Salters moved to recommend approval of the purchase of a 1999 Ford E-250 Econoline Surveillance Van fully equipped with the latest in surveillance equipment and technology from the Sirchie Group at a cost of $80,120, as recommended by staff. The motion was seconded by Mrs. Malone and unanimously carried.
Computer Purchase for Y2K Compliance
A recent evaluation of the computers in use by City Departments indicated that 60 personal computers (PC’s) would need to be replaced in order to be “Y2K” compliant. Only the base computers will be replaced while continuing use of existing monitors.
Bids were advertised for the purchase of 60 PC’s and 21 bids from 18 vendors were received. Of the bids received, only one (1) vendor, D.O.E. Technologies of Wilmington, Delaware, met all of the bid requirements. Staff recommended awarding the bid for 60 PC’s to D.O.E. Technologies of Wilmington, Delaware, in the amount of $57,780.
The funding for this equipment purchase has been provided in each department’s computer hardware account in the current year’s budget. Upon Council’s approval, the PC’s will be ordered and all Y2K deficient PC’s will be replaced during March and April 1999.
Mr. Salters moved to recommend approval of staff’s recommendation, seconded by Mrs. Malone and unanimously carried.
UTILITY COMMITTEE
The Utility Committee met with Councilman Lambert presiding. Members present were Councilmen Carey and Weller, and Mr. Farling. Councilwoman Malone was deputized to serve in the absence of Mr. Kramedas.
Replacement of Metering Transformers at Dover Air Force Base Substation
The City has three (3) “metering oil filled (electric) current transformers” at the Dover Air Force Base (DAFB) location. The transformers provide the meters with a measurement of electric usage, which is used for billing purposes. Due to the age of the transformers (30 years old) and changing technology, staff felt that the current transformers should be replaced.
Mr. O’Connor stated that replacement of the transformers will improve the reliability of metering and service to DAFB. He noted that it will be the final step in the DAFB Substation renovation.
Sealed bids for the transformers were received as follows:
Company Total Bid
Vanyo $25,716 (6-7 weeks delivery time)
Wesco $23,970 (24-26 weeks delivery time)
Taking into consideration the cost difference ($1,746) and delivery time, staff recommended that the bid for the metering transformers be awarded to Vanyo, in the amount of $25,716, with a delivery time of 6-7 weeks. Funding for the transformers is available in the current year’s Electric Engineering Budget in the DAFB Substation Upgrade account.
Mrs. Malone moved to recommend approval of staff’s recommendation. The motion was seconded by Mr. Carey and unanimously carried.
Wastewater Master Plan Engineering Services Agreement
A Request for Qualifications (RFQ) was advertised for engineering services to prepare an update to the City of Dover Wastewater Facilities Master Plan. This document will be used to identify the necessary improvements to the City’s wastewater collection and transmission system over the next 20 years. Of the 13 engineering firms that submitted qualifications for review, six (6) firms were selected for the interview process. Based on the interviews, staff recommended entering into an engineering services contract with Davis, Bowen & Friedel, Inc. to prepare the 1999 Wastewater Facilities Master Plan. Preparation of the plan will be a cooperative effort between the consulting firm, the Department of Public Works and the Planning Office. After considerable negotiations regarding the scope of the proposed work plan, Davis, Bowen & Friedel, Inc. submitted an acceptable task outline with a proposed cost not to exceed $62,000.
The funding for this project is available in the FY 99 Wastewater Management Budget. Fifty percent of the total cost of the project will be reimbursed from a State of Delaware Wastewater Facilities Planning Grant awarded to the City of Dover in 1998.
Staff recommended awarding the engineering services contract to Davis, Bowen & Friedel, Inc. in an amount not to exceed $62,000 for all work associated with completing the tasks outlined in their work plan for preparation of the 1999 City of Dover Wastewater Facilities Master Plan.
Mr. Carey moved to recommend approval of staff’s recommendation, seconded by Mr. Weller and unanimously carried.
Wastewater Rate Revisions
In order to meet the current and future needs of the City’s wastewater fund, the Department of Public Works recommended consideration of a $0.20 per thousand gallon wastewater rate increase. The proposed increase will be used to finance the maintenance of and improvements to the City’s wastewater conveyance and collection system. Projects to be partially financed through the rate increase are included in the fiscal years 2000, 2001, and 2002 Operating Budgets and Capital Investment Plans. The estimated total costs of these projects are approximately $700,000. Additional projects are likely to be identified in the 1999 Wastewater Facilities Master Plan Update.
Staff recommended that the wastewater rate be increased an additional $0.20 per thousand gallons for “In-City” customers, from $1.21 per thousand gallons to $1.41 per thousand gallons, and an additional $0.30 per thousand gallons for “Out-of-City” customers, from $1.81 per thousand gallons to $2.11 per thousand gallons, and that the new rates become effective with April 1, 1999 billings.
Mr. O’Connor assured members that the City’s rates will remain very competitive and that the funds derived from the increase will be used to maintain the City’s aging wastewater system.
Mrs. Malone moved to recommend approval of staff’s recommendation, seconded by Mr. Farling and unanimously carried.
Mrs. Malone moved for adjournment, seconded by Mr. Leary and unanimously carried.
Meeting Adjourned at 7:22 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
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