REGULAR COUNCIL MEETING
The Regular Council Meeting was held on June 9, 1997 at 7:30 p.m. with Council President Christiansen presiding. Council members present were Mr. Lambert, Mr. Pitts, Mr. Leary, Mr. Truitt, Mrs. Malone and Mr. Salters. Mr. Fenimore and Mr. Weller were absent.
Council staff members present were Chief Smith, Mr. Lucas, Mr. O'Connor, Mr. DePrima, Chief Carey, Mrs. Boaman 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 Christiansen declared the open forum in session and reminded those present that Council is not in official session and cannot take formal action.
There was no one present wishing to speak during the Open Forum.
The invocation was given by Rabbi Moshe Goldblum, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Mrs. Malone moved for approval of the agenda, seconded by Mr. Salters and unanimously carried.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF MAY 27, 1997
The Minutes of the Regular Council Meeting of May 27, 1997 were unanimously approved by motion of Mrs. Malone, seconded by Mr. Salters and bore the written approval of Mayor Hutchison.
LINDA CHICK - NEW STREET EVENTS
Ms. Linda Chick informed members of Council and the public that the New Street Fair will take place June 14th from 11:00 a.m. to 4:00 p.m. at the corner of Cecil and New Streets in the Wesley College Intermural Field. Employees of Kindred Spirits have hosted this event for the past three years. It is a free event that will include many activities and crafts.
On the last Wednesday of August, a block party will be held for adults and children. Ms. Chick stated that past years have proven that everyone has a great time and she stated that they have never experienced any problems during the event.
Kindred Spirits employees and volunteers will be in charge of cleaning up after the events. Ms. Chick stated that each year the number of volunteers increase, which makes this such a successful community event. She urged members of Council to participate in the events and relayed appreciation for being permitted to hold the events and for the assistance given by the City of Dover staff.
PROCLAMATION - FLAG DAY - PAUSE FOR THE PLEDGE OF ALLEGIANCE
The City Clerk read into the record the following Proclamation:
WHEREAS, by Act of Congress of the United States dated June 14, 1777, the first official Flag of the United States was adopted; and
WHEREAS, by Act of Congress dated August 3, 1949, June 14th of each year was designated "NATIONAL FLAG DAY"; and
WHEREAS, the Congress requested the President to annually issue a proclamation designating the week in which June 14th occurs as "NATIONAL FLAG WEEK"; and
WHEREAS, on December 8, 1982, the National Flag Day Foundation was chartered to conduct educational programs and to encourage all Americans to PAUSE FOR THE PLEDGE OF ALLEGIANCE on Flag Day, June 14th; and
WHEREAS, by Act of Congress, Public Law 99-54 was passed to have the PAUSE FOR THE PLEDGE OF ALLEGIANCE as part of the celebration of National Flag Day throughout the nation; and
WHEREAS, Flag Day celebrates our nation's symbol of unity, a democracy in a republic, and stands for our country's devotion to freedom to the rule of all, and to equal rights for all.
NOW, THEREFORE, I, JAMES L. HUTCHISON, MAYOR OF THE CITY OF DOVER, do hereby proclaim June 14, 1997, as FLAG DAY in the City of Dover and urge all citizens to pause at 7:00 P.M. on this date for the Eighteenth Annual "PAUSE FOR THE PLEDGE OF ALLEGIANCE" to the Flag and join all Americans in reciting the Pledge of Allegiance to the Flag of the United States of America.
PUBLIC HEARING - PROPOSED DEMOLITION - 152 N. QUEEN STREET
A public hearing was duly advertised for this time and place to consider a violation of the Dangerous Building ordinance at 152 N. Queen Street. The Building Inspector, Mr. DePrima, stated that the structure is a vacant fire hazard that has been left unoccupied and unattended for more than three months. The decay is being accelerated by natural and man made causes which are attracting trespassers and vagrants, increasing the probability of fire and danger to human life. Slides were shown which depicted the condition of the structure.
Mr. DePrima explained that the owner, Rosetta Scott, passed away in the 1940's and the property has been in the name of heirs since. The equitable owner, by default judgement, is Sears and Roebuck Company. The structure was declared dangerous in April 1987 and again in the winter of 1996. One of the heirs attempted to repair the structure but was not successful and it is again falling in a state of disrepair. The estimate for demolition is $9,000.
Council President Christiansen declared the public hearing open.
There was no one present wishing to speak during the public hearing.
Council President Christiansen declared the public hearing closed.
If the heirs of the property have no desire to repair the structure, Mr. Lambert suggested that the property be donated to a worthy cause such as Habitat for Humanity. Mr. DePrima explained that the City could not take possession of the property. We would be able to lien the property for the demolition costs. Mr. Lucas explained that the City could enter judgement against the property and force its sale to recoup the City’s costs. At that point, all past ownership claims would be extinguished and would prevent anyone from claiming ownership from that day forward. Until such a sale takes place, the City could not gain a clear title to the property.
Mr. Lambert voiced concern with demolition of the property if it is still structurally sound. Although the structural damage is not excessive, Mr. DePrima stated that repair costs would probably be in excess of what an individual would want to invest. Mr. Jerome Cooper, Inspector, estimated that it would cost in excess of $40,000 to make the necessary repairs.
Noting the small size of the lot, Council President Christiansen asked if the lot is large enough for a new structure to be built on it. Mr. DePrima stated that in the past, the City has permitted replacement on this type of lot.
Mr. Leary moved to authorize the demolition of 152 N. Queen Street, subject to the final discretion of the Building Inspector. The motion was seconded by Mrs. Malone and carried by a unanimous roll call vote (Mr. Fenimore and Mr. Weller absent).
PUBLIC HEARING - ELECTRIC FUND BUDGET
A public hearing on the Electric Revenue Fund Budget is required for compliance with the 1985 Electric Revenue (Refunding) Bonds Resolution - Annual Budget Section (as amended by 1990 Bond Resolution) prior to adoption of the budget. Notice of the public hearing was properly advertised.
Council President Christiansen declared the public hearing open.
There was no one present wishing to speak during the public hearing.
Council President Christiansen declared the public hearing closed.
Council action on the Electric Fund Budget will take place during the latter part of the meeting.
COUNCIL BUDGET HEARINGS
Members of City Council and civilian members of the Legislative and Finance Committee met in budget hearings on May 20, 1997. Councilman Salters, Chairman of the Legislative and Finance Committee, explained that the proposed budgets were prepared by the City Manager, Finance Director, and Administrative Services Director, with the assistance of City staff. The total budget for the City’s major funds for 1997/98 is approximately $70 million, with $15 million in the General Fund budget. The committee recommended acceptance of the proposed 1997/98 budget as presented by staff.
The First Reading of the budget ordinances will take place during the latter part of the meeting.
PROPERTY ASSESSMENT APPEALS REPORT
The Assessment Appeals Committee met on May 20, 1997 from 2:00 p.m. to 4:00 p.m. Members present were Councilmen Salters (Chairman), Pitts, Leary and Truitt (Alternate). Formal property assessments were reviewed and the Committee made the following recommendations:
Blood Bank of Delaware
Value Appealed
Appraised Assessed
221 Saulsbury Road 1,132,800 679,700
The Committee recommended that the property be exempt.
Harvest Years Senior Center
Value Appealed
Appraised Assessed
21 Saulsbury Road 57,900 34,700
The Committee recommended that the property be exempt.
The Dover Art League
Value Appealed
Appraised Assessed
21 Loockerman Street 104,500 62,700
The Committee recommended that the property be exempt.
Dover Housing Dev., Inc.
Value Appealed
Appraised Assessed
30 S. New Street 689,000 413,000
The Committee recommended denial of the request for tax abatement.
Mr. Salters moved for acceptance of the report, seconded by Mr. Leary and unanimously carried.
Noting that a representative of the Dover Housing Development, Inc. plans to speak during the public hearing, Mr. Lucas briefed members of Council on the request for tax abatement. He supplied members of Council with copies of the State statute that outlines the criteria for exemption status for real estate purposes.
Council President Christiansen declared the hearing open.
Mr. David Buches, General Manager of the Dover Housing Development Corporation, stated that the Dover Housing Development Corporation is a non-profit housing organization dedicated to developing and/or preserving affordable housing options. One of their projects is Kent Apartments, located at 30 S. New Street, which is the property being discussed for possible tax abatement. They have leveraged $500,000 in private financing to achieve the physical improvement objective. They believe revitalization of this project will have a positive impact on the surrounding neighborhood. They plan to bring on-site management and maintenance to the site to protect the capital investment and to continue contributing to the revitalization of the Queen/New Streets neighborhood. They hope to attract tenant population that is more economically diverse than those that have rented at this facility in the past. The existing tenant population has an average income of less than $9,000 per household, which creates significant limits on their operating revenues and expenses for that particular project. The request for tax abatement is focused on the current situation and on the proposals for the future. They believe that the change will permit more flexibility on the operating expense side, which will be reinvested into additional management and maintenance services during the abatement period. This would facilitate their immediate and long term efforts to establish a more beneficial income mix at this site. The original request for abatement was for a 18 year period, with total abatement for years one through five and graduating to 100% in the 18th year. Although the 18 year abatement would be ideal, they are willing to settle for something less.
Asked by Mr. Leary about the current tax exempt status of his corporation, Mr. Buches stated that although their exempt status had expired, they have submitted the necessary information for the continuation of the tax exempt status which has been approved on a permanent basis. Mr. Buches stated that although he may qualify for tax exemption, it is his intention that this property become fully tax producing. He is simply requesting tax abatement until such time as the property becomes financially able to carry the full load for property taxation.
After many questions on the proposal, Mr. Rodriguez stated that authority for tax abatement may be outside the responsibility of the Property Assessment Appeals Committee. It was his opinion that the Property Assessment Appeals Committee may consider property exemption and appeals of assessed property values. He stated, however, that City Council has authority to consider tax abatement.
Mr. Leary moved to close the public hearing, seconded by Mr. Salters and unanimously carried.
Council President Christiansen declared the hearing closed.
Mr. Leary moved for approval of the committee’s recommendation for the following properties:
Blood Bank - 221 Saulsbury Road - Exemption
Harvest Years Senior Center - 21 Saulsbury Road - Exemption
Dover Art League - 21 Loockerman Street - Exemption
The motion was seconded by Mrs. Malone and carried by a unanimous roll call vote (Mr. Fenimore and Mr. Weller absent).
Mr. Truitt moved that the request for tax abatement for property located at 30 S. New Street, owned by Dover Housing Development, Inc., be referred to the Legislative and Finance Committee. The motion was seconded by Mr. Lambert and unanimously carried.
SETTING OF PROPERTY TAX RATE
The tax rate for the 1996/97 property tax billing was sixty eight and one half cents ($.685) per one hundred dollars of assessed valuation. The proposed budget maintains the same rate for the upcoming tax billing.
Mr. Salters moved that the property tax rate remain at sixty eight and one half cents ($.685) per one hundred dollars of assessed valuation for the upcoming 1997/98 property tax billing. The motion was seconded by Mr. Pitts and carried by a unanimous roll call vote (Mr. Fenimore and Mr. Weller absent).
DOWNTOWN DOVER BUSINESS IMPROVEMENT DISTRICT BUDGET/ASSESSMENT RATE FOR FISCAL YEAR 1997/98
The Business Improvement District (BID) ordinance adopted by the City Council requires that the Council adopt a BID budget and assessment every year. A report was submitted by Mr. Mike Karia for City Council consideration and the proposed rates are as follows:
|
|
ZONE 1 |
ZONE 2 |
ZONE 3 |
TOTAL |
|
ASSESSMENT TAX RATE PER $100 ASSESSMENT |
0.145 |
0.1025 |
0.035 |
--- |
|
REVENUE RAISED |
$20,265 |
$15,920 |
$3,983 |
$40,168 |
|
% REVENUE RAISED |
50% |
40% |
10% |
|
|
NUMBER OF PARCELS |
136 |
129 |
58 |
323 |
|
AVERAGE ASSESSMENT |
$151 |
$115 |
$135 |
$134 |
The First Reading of the budget ordinance will take place during the latter part of the meeting.
FIRST READING - PROPOSED BUDGET ORDINANCES
Mr. Leary moved to waive the reading of the proposed budget 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 June 23, 1997.
Mr. Leary moved for acknowledgment of the first reading of the following proposed budget ordinances, by title only, seconded by Mrs. Malone and unanimously carried.:
Budget Ordinances - Revised 1996/97 - Proposed - 1997/98
A. General Fund - Cash Receipts and Expenses
B. General Contingency Fund - Cash Receipts and Expenses
C. Water/Wastewater Fund - Revenue and Expenses
D. Water Improvement/Extension Fund - Cash Receipts and Expenses
E. Wastewater Improvement/Extension Fund - Cash Receipts and Expenses
F. Water/Wastewater Contingency Fund - Cash Receipts and Expenses
G. Electric Revenue Fund - Revenue and Expenses
H. Electric Utility Improvement and Extension Fund - Cash Receipts and Expenses
I. Electric Utility Depreciation Reserve - Receipts and Budget
J. Electric Utility Insurance Stabilization Fund - Receipts and Budget
K. Electric Utility Future Capacity Fund - Receipts and Budget
L. Intergovernmental Service Fund - Cash Receipts and Expenses
M. Municipal Street Aid Fund - Cash Receipts and Expenses
N. Police Grant Fund - Cash Receipts and Expenses
O. Library Grants Fund - Cash Receipts and Expenses
P. Library Endowment Fund - Cash Receipts and Expenses
Q. Community Development Fund - Cash Receipts and Expenses
R. Delaware Prevention Network - Cash Receipts and Expenses
S. Health Insurance Fund - Cash Receipts and Expenses
T. Workers Compensation Fund - Cash Receipts and Expenses
Budget Ordinances - Proposed 1997/98
U. Downtown Dover Business Improvement District - Cash Receipts and Expenses
Council President Christiansen noted that this is the last City Council Meeting that will be attended by Chief Smith prior to his retirement. A round of applause was given in appreciation of Chief Smith’s many years of service to the City of Dover.
Mr. Truitt moved to adjourn, seconded by Mr. Pitts and unanimously carried.
Meeting Adjourned at 8:40 P.M.
DEBRAH J. BOAMAN
CITY CLERK
All orders, ordinances and resolutions adopted by City Council during their meeting of June 9, 1997, are hereby approved.
JAMES L. HUTCHISON
MAYOR
/DJB