REGULAR COUNCIL MEETING
The Regular Council Meeting was held on July 27, 1998 at 7:30 p.m. with Council President Christiansen presiding. Council members present were Mr. Lambert, Mr. Pitts, Mr. Leary, Mr. Truitt, Mr. Carey, Mrs. Malone, Mr. Salters and Mr. Weller.
Council staff members present were Chief Faulkner, Mr. Lucas, Mr. O'Connor, Mr. DePrima, Chief Carey and Mrs. Green.
OPEN FORUM
The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Christiansen declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action.
Mr. Ron Harmon of 1427 New Burton Road referred to the Open Forum segment held on July 13, 1998 whereby a neighbor (Ms. Andres) had addressed members concerning the trees that he removed that were adjacent to the rear of her property. He apologized for causing any confusion or concern among members of Council and his neighbors. Mr. Harmon stated that his property was recently rezoned to allow construction of a mini-storage facility and that according to the site plan approval, there was a stipulation that the trees would remain to serve as a buffer. He assured members that it is his intent to build the project as originally promised. Unfortunately, the trees were overgrown with vines, wild roses, weeds and poison ivy (pictures were provided for members’ perusal). It was his feeling that it was necessary to replace the trees in order to make the project aesthetically pleasing and so that it will blend more with the neighborhood. The trees were originally planted to be sold for Christmas and have not been taken care of for several years. Mr. Harmon explained that once the buildings have been constructed, the landscaping will be completed. He has met with residents of the neighborhood and with City officials in an effort to rectify this situation.
The invocation was given by Reverend Doreina Miles, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Mr. Truitt moved for approval of the agenda, seconded by Mr. Leary and unanimously carried.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JULY 13, 1998
The Minutes of the Regular Council Meeting of July 13, 1998 were unanimously approved by motion of Mr. Carey, seconded by Mr. Salters and bore the written approval of Mayor Hutchison.
PRESENTATION (DONATION) - WESTMINSTER VILLAGE
Mr. Rob Kratz, Executive Director of Westminster Village, along with Ms. Jean Parkinson (Resident Council President), relayed the appreciation of the residents of Westminster Village for all services provided by the City. Special appreciation was noted for the services provided by the Police Department and the fire service available from the Robbins Hose Company. In recognition of these services, Mr. Kratz presented two (2) separate checks in the amount of $1,000 each. The donations were accepted by Fire Chief Carey and Police Chief Faulkner.
Mayor Hutchison and Mr. O’Connor relayed the City’s appreciation for the continued financial support of Westminster Village and for the contribution to the community by Westminster Village.
LEGISLATIVE AND FINANCE COMMITTEE REPORT
The Legislative and Finance Committee met on July 13, 1998 with Chairman Salters presiding.
Commercial Vendor Policy During Race Weekends
A public hearing was held during the June 8, 1998 Regular Council Meeting to consider the rezoning of property located at 190 Old Leipsic Road from R-10 (Single Family Residential) to C-1A (Limited Commercial). Mr. Carl Moore, owner of the property, requested rezoning to allow commercial vending on his property during race weekends. Council denied the rezoning request but referred consideration of alternatives that would allow for vendors on residential property located near Dover Downs during race weekends to the Legislative and Finance Committee for further review and recommendation.
As requested, the Planning Department conducted a survey of neighboring property owners and tenants. The City Clerk’s Office researched previous policies and/or special permission that allowed the use of residential property for commercial purposes during race weekends. The survey conducted by the Planning Department included two issues: allowing commercial vendors during race weekends and permanent rezoning of commercial areas. Mr. DePrima explained that two separate neighborhoods were surveyed; Old Leipsic Road and Dover Leipsic Road. The results of the survey indicate that property owners on Dover Leipsic Road do not want commercial vendors during race weekends, and are not in favor of rezoning. The residents of Old Leipsic Road were more supportive of allowing commercial vendors than of total rezoning.
According to City records this issue was before Council in 1980. At that time, Council allowed commercial vendors for one (1) race only. In 1988, after eight (8) years of commercial vendors being in the area during race weekends, Mr. Roe, then City Planner, sent a letter stating that the City’s policy (which is still in effect today) was to allow commercial vendors in commercially zoned areas and self-contained recreational vehicles and parking of cars in residentially zoned areas.
Mr. DePrima stated that from a planning perspective, rezonings should be uniform and done as a whole; not by using a piecemeal approach. The commercial vendor issue is not a planning issue, but rather an issue of how they would administratively handle the property boundaries and what would be permissible in each area. Mr. DePrima stated that the Comprehensive Plan does not encourage additional commercial zoning for this area.
Mr. Salters stated that, according to history, past Councils have not been in favor of commercialization of the area even though they have allowed parking during race weekends and that the majority of the property owners do not want the area commercialized.
Mrs. Malone stated that her concern is for public safety. The City, with the help of other municipalities, has had a good record of controlling pedestrian and vehicular traffic during race weekends. She also expressed concern that the property owners would not be commercially insured and that the City could potentially be liable for allowing commercial vendors.
Chief Faulkner stated that anytime there is an increase in pedestrian and vehicular traffic, there is an increase of risk. He explained that at the end of a race, there is a human wall leaving Dover Downs’ property and that the Police Department stations at least three (3) police officers at the Leipsic Road intersection to assist in pedestrian traffic flowing smoothly. Should commercial vendors be permitted as suggested, the pedestrian traffic will not flow as smoothly, increasing the risk of accidents.
Mr. Weller stated that he was concerned with market integrity. Mr. Moore and his attorney were requested to provide him with a list of possible vendors months ago and he stated that he has not yet received the information. Mr. Weller supports and encourages the parking of cars and campers and may have been able to support commercial vendors if he had received the information as requested.
Mr. DePrima informed members that during race week, an on-site trailer is made available to City, State and County officials to assure that all vendors are properly licensed.
Mr. Lambert also relayed concerns regarding public safety and suggested that, if the City wishes to continue to allow parking on residential property, it should be formalized in the zoning code.
Mr. DePrima explained that the zoning code allows vendors on commercially zoned property and that although it does not allow for commercial parking on residentially zoned property, it has been the City’s policy to allow parking on residentially zoned property during race weeks at Dover Downs. Concurring with Mr. Lambert, he suggested that the current policy be formalized or that a new policy be created.
In order to avoid commercial parking in other residential areas, Mr. O’Connor suggested that the proposed amendment refer to the parking as a “special exception use”.
During the committee meeting, Mr. Moore addressed concerns of Mr. Weller explaining that he would use the same vendors that are currently using the property of Berry Van Lines, Farmer’s Market, Pizza Hut and the Sunoco Station. He requested permission to allow commercial vendors because, during the races, the road to his property is closed, preventing full utilization of his property for parking. Last year there were 18 parking spaces that could not be accessed because of the blocked road. Mr. Moore stated that he spoke with the Chief of Police last year and was advised that a meeting would be arranged with the City and DelDOT officials, in an attempt to alleviate this problem; however, he has not yet been notified of such a meeting.
With regard to the safety concerns, Mr. Moore stated that in the 30 years he has lived there, no one has been hurt on Old Leipsic Road during the races; however, two (2) people have been killed on Route 13 during race weekend and that last year, a woman was hit and killed near Berry Van Lines. Mr. Moore stated that once Old Leipsic Road is blocked, there is only pedestrian traffic, which he feels eliminates any concerns regarding safety.
During the committee meeting, Mr. DePrima stated that he will prepare an ordinance amendment to codify the policy based on the discussion that occurred during the meeting and present it back to the committee for further consideration. No further action was taken by the committee.
Mr. Salters moved for approval under consent agenda format, seconded by Mr. Carey and unanimously carried.
Proposed Ordinance Amendment - Article III, Section 19.5-20 - Transfer Tax -Levy of Tax; Exemption
In accordance with new legislation (H.B. 757) effective July 1, 1998, the State realty transfer tax was amended to provide that municipalities may impose on real property transfers, a maximum percentage of one and one-half percent (1 ½%). This allows for the City to increase its present tax by one-half percent (½%) while at the same time the State transfer tax within the City of Dover decreases by the same amount.
Mr. O’Connor explained that, if the economy and real estate sales remain the same, he expects approximately $300,000 in additional revenue to the City.
Mr. Leary amplified that the State is taking ½% less from the transfer tax and giving it to the City; therefore, there is no additional costs for the transfer tax.
During the committee meeting, Mrs. Malone reminded members that the Parks and Recreation Committee has been diligently soliciting funds for the recreational facility and requested that the funds be set aside for that project, since the money is unbudgeted and would help recreation tremendously.
Mr. Leary stated that the funds received from the tax by municipalities must be segregated from the municipality’s General Fund. It was noted by Mr. O’Connor that a separate account will be established for the funds, which can be used for eligible projects. Council President Christiansen suggested that Mrs. Malone make a formal request for the funds.
Mr. Lambert suggested that the Finance Director submit recommendations for the use of the funds.
The committee recommended approval of the proposed amendment to Chapter 19.5, Section 19.5-20 of the Dover Code, to allow for an increase of one-half percent (½%) in the City’s transfer tax.
Mr. O’Connor submitted a revision to the proposed ordinance that would exempt first time home buyers from the transfer tax. He noted that with the strict definition of a first time home buyer, there should be little or no impact on revenue projections.
Mr. Salters moved for approval of the committee’s recommendation and the proposed amendment to Section 19.5-19, definition of a first time home buyer. The motion was seconded by Mr. Leary.
Responding to Mrs. Malone, Mr. O’Connor stated that anyone that has had any interest in residential real estate, whereby their name appears on a deed, would not be qualified for exemption.
To clarify any misunderstandings, Mr. Leary reiterated that this is not an additional fee for transferring property since the State has reduced their fee by ½% and the City has increased their fee by ½%.
The motion for approval of the proposed ordinances, amending Article III, Realty Transfer Tax-Section 19.5-19, Definitions and Section 19.5-20, Levy of Tax; Exemption was unanimously carried. (The First Readings of the ordinances will take place during the latter part of the meeting).
Purchase of CAD Records Management System
The City of Dover Police Department is in need of an updated Computer Aided Dispatch System and Records Management System to meet the needs of our growing community and to facilitate our emergency 911 status as a true fold-down site for the State of Delaware Kent Comm Emergency Reporting Center. Computer Aided Dispatch is an interactive program that tracks the status of field units and incidents, thereby promoting officer safety by providing automatic checks for hazard alerts. Additionally, manpower allocation is enhanced through a skill search option and automatic unit recommendation. The Computer Aided Dispatch segment provides complete incident tracking and integration with the Records Management Module which allows for ease of data capture and statistical retrieval. Utilization of a Computer Aided Dispatch and Records Management System will improve efficiency, standardize procedures, increase accountability, and officer safety. Additionally, purchase of the New World CAD/RMS system will ensure that the City of Dover Police Department is in compliance with the path of other agencies within the State (such as State Police in all three counties and Wilmington Police Department) in their endeavors to achieve a State-wide CAD/RMS system.
The Police Department is desirous of purchasing the CAD/RMS from New World Systems as the sole vendor to ensure compatibility of information exchange with other agencies within the State. Not only does New World CAD/RMS offer a product which far exceeds the current system, but it will guarantee compliance with other State systems. New World Systems is the vendor of choice for other agencies considering CAD purchases. The trend in criminal justice agencies with the State is to have all police departments utilizing the same vendor, thereby avoiding the need for expensive interfaces to the State system with every software change made. The Police Department will be making this purchase with the following funds:
LLEBG CAD Grant (Federal) $101,521
LLEBG Equipment Grant (Federal) $ 20,500
SALLE CAD/RMS Grant (State) $ 19,521
Dover P.D. Budget for Software (Carry over from FY98) $ 52,950
Dover P.D. Budget for Software (FY99) $ 16,000
Dover P.D. Budget for Hardware $ 11,000
TOTAL $221,492
The committee recommended approval of the purchase of a Computer Aided Dispatch/Records Management System from New World Systems at a cost of $221,492, as recommended by staff.
Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. Carey and carried by a unanimous roll call vote.
Mr. Salters moved for acceptance of the Legislative and Finance Committee Report, seconded by Mr. Leary and unanimously carried.
UTILITY COMMITTEE REPORT
The Utility Committee met on July 13, 1998 with Chairman Lambert presiding.
Materials to Terminate the Fiber Optic Line - Phase I and II
The planning and design construction of the first phase of the City’s fiber optic communication line requires a fiber optic “backbone” (trunk line) to be installed from the Electric Administration Building to North Street with tap loops provided at key locations, including a smaller line to North Street Substation, which will allow the protective pilot wire relaying to be re-commissioned for both 69KV lines from McKee Run to North Street Substation. Phase II will include line construction from this “backbone” to 5 E. Reed Street, Police Department and various substations. Racks, panels, and miscellaneous equipment are required at these various locations to terminate the optical cables.
Staff solicited bids from nine (9) vendors. Of the bids received, Wesco was the only vendor to submit a complete bid, therefore, staff recommended that a purchase order be issued to Wesco in the amount of $47,344.90.
Funding for this purchase was provided in the City’s 1997-98 budget. Since these funds were not expended, the funds were transferred to the 1998-99 Improvement and Extension Fund through an internal budget revision approved by the Finance Department.
Mr. O’Connor advised members that there will be approximately 10 phases to this project and that the total cost is not yet known. Initial work will connect substations and major City facilities.
The committee recommended acceptance of staff’s recommendation to issue a purchase order to Wesco in the amount of $47,344.90.
Mr. Lambert moved for approval of the committee’s recommendation, seconded by Mr. Weller and carried by a unanimous roll call vote.
Evaluation of Bids - Electric Stock Materials
The City has been purchasing electric stock material through a blanket bid process for several years. It has proven to be very cost effective as vendors will guarantee their bid price for materials during the entire year.
Bids were sent to fourteen (14) vendors with two (2) additional vendors requesting copies of the bid through the newspaper ad that was placed by the City. Of the sixteen (16) vendors that received materials lists for bidding, ten (10) responded with bids, eight (8) of which were selected for material. Staff recommended awarding the bids as follows:
Dixie Electric Supply $192,430.89
Hesco Inc. 48,231.16
Vanyo Electric Supply 206,691.29
Wesco, Inc. 864,117.67
* Graybar Electric 10,236.51
* Rigby Electric Supply 11,385.21
* Special Fleet Supply 4,621.76
* Tecot Electric 1,190.64
* It is noted that the purchases are below the $25,000 maximum allowed to be purchased without Council’s approval.
Mr. Lambert stated that the bids only guarantee prices and that materials will be purchased on an as-needed basis.
The committee recommended acceptance of staff’s recommendation to purchase from the listed vendors for the period from August 1, 1998 through July 31, 1999.
Mr. Lambert moved for approval of the committee’s recommendation, seconded by Mr. Weller and carried by a unanimous roll call vote.
Bids - Transformers
In previous years, transformers were included in the annual Electric Stock Materials Bid. This year, however, they were bid separately so that vendors could be requested to provide for a three (3) year commitment on the prices quoted and a “just-in-time” delivery of five (5) working days.
Bids were sent to 14 vendors, with six (6) vendors responding: Hesco, Teco, National Transformer, Pauwels, Vanyo and Wesco. Only one (1) vendor agreed to the three (3) year price commitment and to the stocking of the transformers as specified by the City. The City identified 33 transformers that will be part of this three (3) year bid. Wesco was the only vendor that complied with the specifications and was the low bidder on each unit. Staff recommended that a purchase order be issued for a three (3) year period to Wesco in the amount of $6,177,456.
During the committee meeting, Mr. O’Connor explained that the quantities are estimated based on electric engineering projected usage and purchases for the next three (3) years. He assured members that purchases will not be made unless budgeted and needed and that actual purchases will only be made when the amounts are approved in the budgets for the next two (2) years.
Mr. Lambert referred to the recommendation that a purchase order be issued in the amount of $6,177,456, explaining that the amount is misleading since it is for a three (3) year estimate of potential transformer replacements.
He stated that the bid guarantees the price and a five (5) day delivery; there is no requirement to purchase the transformers nor is the City prohibited from purchasing transformers from another vendor if their price is lower.
Mr. O’Connor stated that the three (3) year estimate and “just-in-time” stipulations have not been previously requested by the City. He explained that it is being done now in an attempt to reduce inventory costs. The City has reserved the right to discontinue the contract at the end of one year.
The committee recommended awarding a three-year contract to Wesco in the amount of $6,177,456.00, as recommended by staff.
Mr. Lambert moved for approval of the committee’s recommendation, seconded by Mr. Weller and carried by a unanimous roll call vote.
Mr. Lambert moved for acceptance of the Utility Committee Report, seconded by Mr. Leary and unanimously carried.
MONTHLY REPORTS - JUNE 1998
By motion of Mr. Salters, seconded by Mrs. Malone, the following monthly reports were accepted:
Chief of Police Report
City Assessor Report
City Clerk/Alderman Report (Fines)
Mayor's Report
General Fund, Cash Receipts & Budget Report
Water/Sewer Fund, Revenue & Budget Report
Electric Revenue Fund, Revenue & Budget Report
Improvement and Extension Fund, Cash Receipts & Budget Report
Internal Service Fund, Revenue & Budget Report
Mr. Weller referred to the Planning and Inspections Report and questioned the status of hiring the Assistant Planner. Mr. DePrima stated that he plans to review the resumes during the next month and anticipates interviewing 5-6 applicants. He advised members that since only 30 resumes were received and in an attempt to obtain more local applicants, a notice for employment was placed in the News Journal.
Referring to the information provided in the report regarding the preliminary subdivision plan for the commercial portion of the John Hunn Brown Property on Route #13, Mr. Weller questioned the proposed six (6) commercial establishments. Responding, Mr. DePrima stated that with the exception of a discounted grocery store, the uses of the properties are not known at this time. He noted that the right-of-way for a new road will not be constructed until further development of the site. The proposed project is located on the far, southern end of the site; therefore, it will not be necessary to build the entire roadway at this time.
Mr. Leary moved to accept the Planning and Inspection Report, seconded by Mr. Weller and unanimously carried.
Mr. Leary noted that the City Manager's Report mentions the Dover Kenton Road project several times and requested an update on the project. Responding, Mr. O’Connor stated that the overhead service has been removed and underground service has been installed. Although this is a State contracted project of DelDOT’s, there appears to be no delays. It is anticipated that the project will be completed by October 1998 with the installation of signalization of the intersection at Walker Road.
Mr. Leary moved to accept the City Manager’s Report, seconded by Mr. Pitts and unanimously carried.
APPOINTMENT (MAYOR HUTCHISON) - PLANNING COMMISSION (FIRST DISTRICT)
Mayor Hutchison recommended the appointment of Colonel Robert D. Welsh to the Planning Commission, representing the First District. This appointment is to fill the unexpired term of Mr. Gorman, which will expire June 1999.
Mr. Leary moved for approval of the appointment as recommended by Mayor Hutchison, seconded by Mr. Carey and carried by a unanimous roll call vote.
FIRST READINGS - PROPOSED ORDINANCES
Mr. Leary moved to waive the reading of the proposed ordinances before Council, seconded by Mrs. Malone and unanimously carried. Council President Christiansen reminded the public that copies of the proposed ordinances are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Final action by Council on the proposed ordinances will take place during the Council Meeting of August 10, 1998.
Mr. Leary moved for acknowledgment of the first readings of the following proposed ordinances, by title only, seconded by Mrs. Malone and unanimously carried:
► Article III, Realty Transfer Tax - Section 19.5-19, Definitions
► Article III, Realty Transfer Tax - Section 19.5-20, Levy of Tax; Exemption
FINAL READING - PROPOSED ORDINANCE
The First Reading of the following proposed ordinance was accomplished during the Council Meeting of July 13, 1998.
Chapter 19.5 - Taxation, Article IV - Abatement of City Real Estate Taxes, Section 19.5-34 - Application Process
Mr. Leary moved that the final reading of the proposed ordinance be acknowledged by title only, seconded by Mr. Weller and unanimously carried.
Mr. Salters moved for adoption of the following ordinance, seconded by Mr. Leary carried by a unanimous roll call vote:
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
That Chapter 19.5 - Taxation, Article IV - Abatement of City Real Estate Taxes be amended by deleting Section 19.5-34 - Application Process in its entirety and inserting in its place the following:
Sec. 19.5-34. Application Process.
(a) An initial application for abatement shall be by letter sent to the City Assessor by the taxpayer specifying the following: exact provisions under which the applicant qualifies, i.e., type of industry, financial investment, level of City/Kent County resident staffing, level of ownership and control, etc.
(b) Applications may be made at any time prior to the issuance of a Certificate of Occupancy for the subject property. Applications for tax abatement received after the Certificate of Occupancy for a subject property has been issued will be rejected.
(c) The City Assessor shall notify applicant within 30 days if the project would meet all conditions for approval.
(d) After a Certificate of Occupancy is issued for the subject property, the City Assessor shall determine if all qualifications for a tax abatement have been met. When so satisfied, the City Assessor shall present the abatement request, with all qualifying documentation, to City Council for approval.
(e) When the application cannot meet all qualifications for tax abatement at the time the Certificate of Occupancy is issued, an automatic 24 month approval extension shall be activated. If qualifications remain unfulfilled at the expiration of the approval extension, the abatement application will be denied by the City Assessor.
(f) Council shall require an Annual Statement of Compliance as a condition to remain eligible for the abatement program. The statements, due by April 15 of each year, shall be used to insure continued fulfillment of all abatement qualifications. Failure to submit a requested Statement of Compliance shall disqualify any participation in the abatement program for the property tax billing following the missed April 15 deadline. The reduction of taxes percentage for the disqualified billing year will be extinguished as unused, with the next lower percentage becoming available for the following tax year.
ADOPTED: July 27, 1998
Mr. Weller moved for adjournment, seconded by Mr. Leary and unanimously carried.
Meeting Adjourned at 8:03 P.M.
JANICE C. GREEN
CITY CLERK
All orders, ordinances and resolutions adopted by City Council during their meeting of July 27, 1998, are hereby approved.
JAMES L. HUTCHISON
MAYOR
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