COUNCIL COMMITTEES
The Council Committees Meeting was held on November 23, 1998, at 6:30 p.m., with Council President Christiansen presiding. Members of Council present were Mr. Lambert, Mr. Pitts (Arrived at 6:48 p.m.), Mr. Leary, Mr. Truitt, Mr. Carey, Mrs. Malone, Mr. Salters, Mr. Weller. Mayor Hutchison was absent.
AGENDA ADDITIONS/DELETIONS
Mr. Lambert requested the addition of Item #2-Power Plant Visitation, under the Utility Committee. Mr. Carey moved for approval of the amended agenda, seconded by Mrs. Malone and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Councilman Salters presiding. Members present were Councilman Leary, Councilwoman Malone, Mr. Merritt, and Mr. Gorman.
PROPOSED ORDINANCE AMENDMENTS, APPENDIX C, DOWNTOWN REDEVELOPMENT
The Downtown Dover Development Corporation (DDDC) recently considered proposed ordinance amendments to Appendix C, Downtown Redevelopment, of the Dover Code. The proposed amendments are as follows:
Article III - Definitions, Section 2 - Eligibility Period
In November 1990, when City Council adopted the Downtown Redevelopment Ordinance, the “eligibility period” was defined as “the period between January 1, 1991 and December 31, 1994", thus creating a sunset on eligibility. In 1995, the ordinance was amended so that the eligibility period would be extended another four (4) years to December 31, 1998. The DDDC has recommended that the eligibility period be extended an additional year to December 31, 1999.
Mr. Salters moved to recommend approval of the proposed amendment (Attachment #1), as recommended. The motion was seconded by Mr. Leary and unanimously carried.
Article III - Eligibility, Section 3, Subsection (c)
The City Assessor, Mr. Lucas, relayed concern that there is no submission deadline for applying for incentives. It is his feeling that if someone were to do a project and realize several years later that it would have qualified, they would be able to successfully petition for incentives.
To avoid the possibility of any misunderstandings, DDDC has recommended that a new subsection be added to Section 3 of Article III that would require applications for development incentives to be received prior to the issuance of a Certificate of Occupancy and/or the completion and finalization of the building permit.
Mr. Salters moved to recommend approval of the proposed amendment (Attachment #2), as recommended. The motion was seconded by Mr. Leary and unanimously carried.
DOVER REALTY TRANSFER TAX REVIEW
In August 1998, the City began collecting an increased realty transfer tax and exempting first-time home buyers. The increase was ½ of 1% of the sale value not qualifying for a first-time buyer exemption. The exemption was ¾ of 1% of the sale value for a first-time buyer.
The City Assessor, Mr. Lucas, provided members with details as a result of instituting the First-Time Buyer Exemption Program, which he feels indicates that the original concept of this program is not being realized. He noted several situations whereby the City has lost revenues due to the net exemptions being greater than the net realty transfer taxes. Mr. Lucas expressed concern that he has no means of verifying ownership outside of Kent County for applicants of the First-Time Home Buyer Program. He stated that he is able to verify previous ownership in Kent County and that if abuse is found, the information will be forwarded to the City Solicitor to formulate a recommendation for consideration by Council.
Mr. Lucas also relayed concern with the high property values of the applications being received from first-time home buyers. He explained that several of the exemptions have been for applicants purchasing homes in the amount of $100,000 to $200,000. He does not feel that this is the market that was targeted for assistance in purchasing a home. In an attempt to address these concerns, Mr. Lucas submitted the following suggestions:
1. Setting a dollar amount, above which the First-time Buyer Exemption would not be permitted.
2. Requiring mortgage companies to certify that, to the best of their knowledge, buyers have never held title to a residential property.
3. Consider inserting a penalty section specifying fines and/or legal actions to be enforced if ordinance violations occur.
4. Including a non-refundable section stipulating that after a realty transfer tax is paid, any subsequent first time buyer refund requests will not be honored.
5. Authorizing the City Assessor to create a City of Dover First-Time Buyers Exemption form which, after Council’s acceptance, the City will distribute to all real estate attorneys as the only form acceptable.
Mr. O’Connor recommended that the dollar amount, above which the First-time Buyer Exemption would not be permitted, be set at $80,000. Mr. Lucas stated that he was agreeable with that amount. Mr. Leary concurred that a dollar amount should be set and added that an effective date of February 1, 1999 should also be set. Mr. Carey stated that he did not believe the $80,000 amount would affect a large portion of the market. Mr. O’Connor stated that the majority of eligible home buyers would be those purchasing townhomes.
Referring to verification of the First-time Buyer status, Mr. Lucas stated that he would consult with the City Solicitor regarding the legality of checking prior applications for violations of the First-time status.
Mrs. Malone requested that the policy be reviewed on May 1, 1999.
Mr. Leary moved to have staff refer back to the Legislative and Finance Committee on December 14, 1998. The motion was 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. Mr. Truitt was deputized to serve in the absence of Mr. Kramedas.
MCKEE 69KV BREAKER REPLACEMENT
Currently, McKee Run has two 69Kv system breakers which were installed in 1971 and 1972 as part of the Unit #3 installation. Subsequently, these breakers were discontinued. In order to prevent prolonged outages and to allow Unit #3 on-line with the support system, the breakers need to be replaced.
Staff recommends replacing the breakers with SF6 guy-type breakers, which are currently in use throughout the 69Kv system, as well as installing a third, dedicated generator, breaker to eliminate the possibility of the plant closing the system when outages are being repaired.
Although Wesco is the sole distributor in this area for SF6 type breakers, for the purpose of checking market prices, bids were sent to three (3) vendors. The details are as follows:
Vendor Cost
Rumsey Electric No Bid
United Electric Supply No Bid
Wesco $104,019 (for three breakers)
Pending Council approval, a purchase order will be issued December 15, 1998 and the manufacturer will ship the breakers on June 15, 1999. In-house crews will install the breakers, and the work will be completed by December 15, 1999.
Staff recommended awarding the bid to Wesco in the amount of $104,019 for three (3) SF6 guy-type breakers. Funding for this project is available in the 1998-99 Improvement and Extension budget through an internal transfer from the Kent Industrial Park upgrade.
Mr. Carey moved to recommend approval of staff’s recommendation, seconded by Mr. Weller and unanimously carried.
POWER PLANT VISITATION
Mr. Lambert stated that during the past three (3) years, Duke Luis Dreyfus has made several improvements to the power plant, including a two million gallon fuel tank, improvements to the warehouse, and major upgrades to the controls for Unit #3. He suggested that Council tour the plant to see the improvements.
Mr. Lambert stated that he would bring the item back in early January or late December to schedule a date.
Mr. Carey moved to adjourn into Executive Session, seconded by Mr. Leary and unanimously carried.
Meeting Adjourned at 7:10 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
RRC/lcg