COUNCIL COMMITTEES
The Council Committees Meeting was held on February 10, 1997 at 6:30 p.m. with Council President Christiansen presiding. Members of Council present were Mr. Lambert, Mr. Pitts, Mr. Leary, Mr. Truitt, Mrs. Malone, Mr. Fenimore, Mr. Salters, Mr. Hare and Mayor Hutchison.
AGENDA ADDITIONS/DELETIONS
Mr. Fenimore moved for approval of the agenda, seconded by Mr. Lambert and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Salters presiding. Members present were Councilmen Leary and Hare and Mr. Merritt. Mr. Schaefer was absent. In his absence, Mr. Truitt was deputized to serve as a member.
Acceptance of Charge Cards for Payment of City Services
During previous committee meetings, Councilwoman Holly Malone suggested that the City consider acceptance of charge cards for payment to the City. City staff has researched the proposal for the use of charge cards for the following:
1. Electric/Water/Miscellaneous Services 3. Recreation Programs
2. Police Fines 4. Business Licenses/Permits
Since transactions for library services are normally for small amounts, staff recommended that use of charge cards for this service be reviewed at a later date.
Mr. Karia estimated the following costs, based upon four locations for acceptance of charge cards:
Equipment costs: $3,100 - this is estimated to recur every five years due to changes in technology
Programming costs: $10,000 (estimated) - for utility payments
Annual Operating costs: $1,220 - telephone lines and maintenance contract
Transaction costs: - this cost depends on the number of transactions and the amount paid through charge cards. Utilization is expected to increase slowly. The following annual costs are estimated
one year after adoption of the program:
General Fund - 6,300
Electric/Water/Wastewater Fund - 14,200
Total Cost $ 20,500
Mr. Karia explained that the figures are based on reasonable estimates, explaining that costs may go up or down, based on customers’ acceptance of the program. The current trend suggests that utilization will increase. Looking at current trends and comparable practices, staff sees this as a favorable program. The program will be monitored closely by staff and a report will be made to Council on a monthly basis. It was noted that the proposal includes the use of Visa, MasterCard, Discover, MAC and debit cards. American Express charge cards are not included.
Mrs. Malone expressed her appreciation for the review of this matter, stating that she has received requests from constituents for the ability to pay by charge cards, especially in the area of recreational programs. Most of the City’s recreational programs are on a first-come, first-served basis with payment required before registration so the ability to pay by charge card will facilitate registration by telephone rather than requiring that payment be brought to the Parks and Recreation Facility. She has also had requests from constituents for the ability to pay utility bills by credit card. The proposal is basically a matter of convenience for our citizens and Mrs. Malone urged approval of the proposal.
Mr. Hare moved to recommend approval of the proposal to utilize charge cards as outlined above, seconded by Mr. Leary.
Mr. Truitt asked if the proposal is cost effective, in light of the startup costs, and asked if it is felt that the proposal will lower the percentage of bad debts for utilities. Mr. O’Connor stated that the proposal is for the convenience to our citizens and although it could have some positive effect on our bad debt, it would be nominal.
Mr. Lambert asked the City Manager if he has received requests from our customers for this service. Mr. O’Connor stated that he has not had an overwhelming number of requests, but he has received comments from some customers that it would be a positive service, especially for those that like to use debit cards rather than paying by cash or check. Noting the costs associated with the service, Mr. Lambert suggested that information on the subject be mailed out with electric bills to see if our customers have an interest in such a service.
Mrs. Malone reminded members that our drive-thru window is not a service that our citizens demanded. It was a service that the City felt would benefit our customers and its use has increased significantly each year. She stated her feeling that the charge card program will expand in the same manner and that some customers may not realize the benefit of the program until after it is in place.
Mr. Karia stated that the concept of computerized banking from home is becoming more and more common, as well as use of MAC and debit cards. Although there are costs associated with the program, he felt that the City should attempt to keep up with technology for the benefit of our customers. He assured members that he will closely monitor the program. Mr. Karia explained that the projected costs of the program were based on a five year period since it will take a few years for our customers to become familiar with it and begin to use it. It is anticipated that the costs will be significantly less in the first year or two since fewer customers will be utilizing the service.
Mr. Fenimore stated his interpretation of the costs, with the five year proposal yielding an annual average cost of $20,500 plus the initial costs of $14,320 for a total five year cost of $116,820. Mr. Karia affirmed that Mr. Fenimore’s interpretation is correct.
If approved, Mr. O’Connor explained that it will take a few months to obtain the needed equipment and initiate the service before the program is actually offered. Mrs. Malone suggested that when the service becomes available, information be sent out with electric bills to inform our customers of the new service.
The motion to recommend approval of the proposal to utilize charge cards was approved with Mr. Truitt voting no.
Meeting Adjourned at 7:00 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Lambert presiding. Members present were Councilmen Pitts and Fenimore and Mr. Carey and Mr. Kramedas.
Acceptance of Dedication of Rights-of-Way and Utilities - Stoney Creek Subdivision - Phase I
The developer of the Stoney Creek Subdivision has requested that the improved rights-of-way and utilities in Phase I be accepted for maintenance and ownership by the City of Dover. After construction was completed, City staff inspected the improvements and provided the developer with a list of repairs to be made to meet City standards and specifications. The City has received a letter from Cambridge Capital Group, Inc. guaranteeing the completion of the improvements. The letter has been accepted in lieu of a Maintenance Agreement and Bond to cover the remaining outstanding construction items in Phase I. The acceptance of these rights-of-way and utilities excludes an alley currently under construction and the stormwater management area as shown on the construction plans for the subdivision. Mr. O’Connor explained that the water retention area does not meet the State’s standards. There is a portion of the alley that should have been included in Phase I but the alley does not currently meet the City’s standards. Although we could have waited for completion of the alley and water retention area, Mr. O’Connor stated that he felt it would be better to expedite acceptance of the streets so that the roads can be maintained by the City for the benefit of the residents that are currently in the development.
Referring to maintenance of the streets, Mr. Fenimore asked if staff is comfortable with the fact that there is a cul-de-sac and three dead-end streets. Mr. O’Connor stated that the streets will not be dead-end streets when the rest of the homes are built. In the interim, if we should experience a snowfall, we can plow far enough beyond the last home to keep the snow out of the way of traffic.
Mr. Pitts moved to recommend acceptance of the dedication of Stoney Creek Subdivision Phase I, excluding the stormwater management area as shown on the construction plans and the alley currently under construction. The motion was seconded by Mr. Carey and unanimously carried.
Kent County Wastewater Adjustment Charge
The City of Dover has entered into a county-wide agreement to standardize the Kent County Wastewater Treatment and Transmission charges. This charge is currently known as the Kent County Wastewater Adjustment Charge and is placed on the City of Dover water and sewer billing. The charge covers expenses incurred for the transmission and treatment of sanitary sewage produced by the City of Dover and its customers. Under the new agreement, the cost of treatment and transmission has been spread equally among all the contract users and sanitary sewer districts in Kent County. Based on the standardization of the rates, the County has set the charge at $1.68 per one thousand gallons for treatment and transmission costs. Therefore, the City should increase the Kent County Wastewater Adjustment Charge from $1.58 to $1.68 per one thousand gallons. This increase will cover the shortfall that will result in the increased rates charged by the County.
Mr. O’Connor stated his opinion that the proposal of $1.68 per one thousand gallons is not unreasonable for the treatment of the sewage. He stated that we are paying for the Treatment Plant and the quality of the treatment, and that we are investing in the future expansion of the plant to accommodate growth as we move forward.
Mr. Fenimore stated that this charge is a pass-thru for the service provided for the Sewage Treatment Plant. Mr. O’Connor concurred, but stated that the City is picking up the costs associated with inflow or infiltration. Some grant funds may be available to assist with any infiltration charges.
Mr. Fenimore moved to recommend approval of increasing the Kent County Wastewater adjustment charge from $1.58 to $1.68, effective with March 1, 1997 City billings. The motion was seconded by Mr. Pitts and unanimously carried.
Bid - 40' Street Light Poles
The State of Delaware intends to rebuild White Oak Road from DuPont Highway to Acorn Lane and they have authorized the City to proceed with the procurement of materials for this project. The City will be removing the overhead wires and place the new lines and equipment underground. We will also be upgrading the street lighting along the road and will need to purchase 31 aluminum street light poles to complete this part of the project. Bids were received from six vendors for the purchase of 31 aluminum light poles, with the low bid from Tecot Electric in the amount of $26,443. Staff recommended approval of the bid from Tecot Electric.
Responding to questions by Mr. Carey, Mr. O’Connor stated that the poles are very similar to those already in use, although they have a polished, rather than satin, finish.
Mr. Fenimore asked if the City is applying for any Transportation Enhancement funds to cover the costs of this project. Mr. O’Connor stated that the State is paying for the costs for removal and relocation of the overhead lines and the City is funding only the difference in costs for placing the service lines underground.
Mr. Carey moved to recommend that the low bid from Tecot Electric be accepted and that a purchase order for $26,443 be issued for the purchase of 31 polished aluminum 40' poles as per their bid proposal. The motion was seconded by Mr. Pitts and unanimously carried.
Evaluation of Bids - FY97 Curb Replacement Program - Contract #97-02
It was proposed in the City’s Investments Plan to remove and replace approximately 7,530 lineal feet of curb and miscellaneous concrete work on existing streets scheduled for resurfacing. Funding for this project is being provided by the City and by DelDOT Suburban Street Aid Agreements. Funding was allocated for curb replacement for the following streets:
Brown Street Davis Circle
Gleneagles Court Inverness Court
Legislative Avenue Pine Valley Road
Maple Lane Smith Street
Spruance Road Troon Road
West Street Woodstock Court
Bids were submitted by three vendors with the low bid received from Shorts Enterprises, Inc. in the amount of $154,852.70.
Mr. O’Connor stated that Shorts Enterprises, Inc. is a minority contractor and the company’s references are excellent. Staff recommended that the contract be awarded to Shorts Enterprises, Inc. for a total cost of $154,852.70.
Mr. O’Connor reminded Council that much of the funding for this project comes from our local legislators. Special recognition is given to Senators Still and Bonini and Representatives Wagner and Stone.
Mr. Fenimore reminded members that the project does not encompass complete replacement of all curbing but that spot repairs are made, as needed. Responding to Mr. Lambert, Mr. O’Connor stated that a paving contract will be brought forward in the very near future.
Mr. Fenimore moved to recommend that the contract for the FY97 Curb Replacement Program be awarded to Shorts Enterprises, Inc. In the amount of $154,852.70. The motion was seconded by Mr. Carey and unanimously carried.
Mr. Truitt moved to adjourn, seconded by Mrs. Malone and unanimously carried.
Meeting Adjourned at 7:20 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
RRC/