COUNCIL COMMITTEES
The Council Committees Meeting was held on April 8, 1996 at 7:00 p.m., with Council President Christiansen presiding. Members of Council present were Mr. Lambert, Mr. Tudor, Mr. Leary, Mr. Pitts, Mrs. Malone, Mr. Fenimore, Mr. Salters, Mr. Hare and Mayor Hutchison.
AGENDA ADDITIONS/DELETIONS
Mr. Salters requested the deletion of the Legislative and Finance Committee agenda #1 (Proposed Use - CDBG Funds - FY97) until the next meeting. Mrs. Malone moved for approval of the agenda as amended, seconded by Mr. Leary and unanimously carried.
Council President Christiansen appointed an Ad-Hoc Committee, consisting of Councilmen Salters, Pitts, Leary and Fenimore, to work with Mr. O'Connor, Mr. DePrima and Mrs. Daniels, in regards to the distribution of CDBG funds.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Salters presiding. Members present were Councilmen Leary and Hare and Mr. James Washington. Mr. Schaefer was absent.
PRESENTATION - NORTH DOVER GATEWAY LANDSCAPING PROJECT
The final design plans for the North Dover Gateway Landscape and Sign Project were presented to the committee by Mr. DePrima. This project is being partially funded by a grant for DelDOT through the Enhancement Grant Program. The committee meeting and the subsequent Council Meeting could serve as the required public hearing for the project and Mr. DePrima requested that the committee's report to Council include a public hearing during the April 22, 1996 meeting.
Mr. DePrima explained that the project contains landscaped islands on the corners of Scarborough Road, with one of the corners containing a long concave brick wall with the seal of the City of Dover and the words "The City of Dover - Capital of the First State". Three flag poles will be located behind the wall for the American Flag, Delaware Flag and Dover Flag.
Responding to Mr. Christiansen, Mr. DePrima stated that the cost for the project is projected at $100,000, with 80% funding from federal funds and 20% funding is a required match. The City's part of the match is to supply the irrigation and a small portion of the planting. Other funds are coming from our State legislators from the Suburban Street Aid funds and a $1,200 grant from the Greater Dover Committee. The City will be responsible for maintenance of the project.
In response to questions about the nearby mobile home park, Mr. DePrima stated that there will be some screening from the mobile home park but he informed Council that this property is currently for sale for something other than a mobile home park. To the rear of the project will be a planned parking lot that DelDOT has planned for a future Park & Ride lot which will be screened from the property to the south.
The project is located on State of Delaware land, with the north side being owned by Delaware Technical and Community College. We will have to enter into an agreement with Del Tech to construct and maintain the project. The wall is located on the side owned by the State of Delaware Department of Transportation and we have an agreement in perpetuity for its use. It is hoped that the project will be completed before this summer.
Mr. O'Connor stated that the wall has an inset, with a facade front that can be removed, that will facilitate an electronic sign if and when the City should desire it. This sign could depict words to promote Dover or to inform of current events, etc. There was some discussion on this type of sign with many members of Council objecting to such a sign. It was clarified that the sign would never be used unless the City chooses to do so. The only action being taken at this time is to have the capability of such a sign should it ever be desired.
Mr. Fenimore commended those involved with this project and recommended that other ingress and egress avenues to the City be considered for some type of signage that welcomes visitors to Dover and delineates the City limits.
Mr. Salters moved to recommend acceptance of the North Dover Gateway Landscape and Sign Project. The motion was seconded by Mr. Hare and unanimously carried. (It is noted that a public hearing was not recommended.)
Meeting Adjourned at 7:05 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Lambert presiding. Members present were Councilmen Pitts and Tudor, Mr. Carey and Mr. Kramedas.
PROPOSED NEW ELECTRIC RATE CLASSIFICATIONS - SECONDARY TIME OF USE AND PRIMARY 2 SERVICE
The development of open access to transmission facilities and retail wheeling has made it imperative that our electric rates be competitive. Staff has recommended approval of new electric rate classifications, which would be used to meet the needs of secondary service accounts that would qualify under specific requirements. Customers selecting either of the rate classifications would have a KW demand of 300 or more with a contract to be negotiated depending upon service needs. This also introduces time-of-day rates to encourage off-peak use of energy.
Responding to Mr. Lambert, Mr. O'Connor stated that if everyone that qualified took advantage of the new rates, the City would experience a loss of revenue of approximately $180,000. He explained that the City must be competitive with other companies and that other electric companies are offering these types of classifications.
Noting that the proposal calls for leasing of the transformers to the customer, Mr. Kramedas asked if the customer could opt to purchase the transformer. Mr. O'Connor replied that purchase of the transformer is not an option.
Mr. Tudor moved to recommend adoption of the new rates (Attachments #1 & #2) as recommended by City staff, seconded by Mr. Kramedas and unanimously carried.
DIRECTIONAL BORING SYSTEM PURCHASE
The City currently contracts all of its directional boring for the cable replacement program. During the first six months of fiscal year 1995/96, we spent over $157,000 for a contractor to perform the work. By purchasing a directional boring system and performing the work in-house, the City could save these contractual expenses in the future. The proposed equipment would be capable of installing conduit for large three-phase installations, as well as water lines for cul-de-sac loop tie-ins and new water line installations for the Public Works Department.
Specifications were determined and bids let for a Vermeer Model D24a, Ditch Witch Model JT3510, or approved equal. Bids were received from five vendors, with the low bid from Ditch Witch of Pennsylvania, in the amount of $165,500. This vendor, however, chose to take four exceptions to the specifications and their bid was rejected. Staff recommended that the bid be awarded to the vendor of the next lowest bid, Vermeer Sales & Service, MD, in the amount of $169,952.
Mr. O'Connor stated that this equipment would be used not only in the Electric Department, but also in the Water Department. It would be operated by a three member crew and would require the hiring of three new employees in the Electric Department. Mr. Carey stated that directional boring saves a considerable amount of restoration work, allows for easier stream crossings and saves on permitting and environmental study costs.
Referring to possible savings with the use of this equipment, Mr. Tudor reminded the City Manager that the City has been paying approximately $20 per foot for directional boring by a sub-contractor. Before any savings can be realized, the cost of the equipment must be recaptured and the costs associated with the additional three employees. In addition, we have to compensate for the costs of these employees when weather does not permit directional boring, and for the costs associated with normal wear and tear on the equipment. Of the $20 per foot cost, at least $2 per foot should be deducted to cover maintenance. Although he supports the purchase, he warned Council that the possible savings is less than what it appears to be on the surface.
Mr. Carey moved to recommend that a bid be awarded to Vermeer Sales & Service, MD, in the amount of $169,952, for the purchase of a new Vermeer Model D24a directional boring system. The motion was seconded by Mr. Pitts and unanimously carried.
TRENCHER/TRAILER REPLACEMENT
As part of our equipment replacement program, trench #702, a 1988 Ditch Witch Model 3310, is scheduled for replacement because of its age and maintenance costs. It is also necessary to replace the trailer, #703, which is used in conjunction with the trencher as the new trencher will overload the existing trailer. Bids were received from four vendors although one bid did not meet the required specifications and was not considered. Staff recommended that the bid be awarded to the low bidder, Vermeer Sales & Service, MD, for a new Vermeer V-3550 with a trencher, backhoe, backfill blade and trailer, at a new unit price of $37,993, a trade-in value of $5,000, for a net cost of $32,993.
Mr. Tudor reiterated previous concerns with the City's specifications being so narrow that only one vendor can meet the specifications. Mr. Lambert relayed his appreciation to Mr. Tudor for his close observation of large purchases of this nature and stated that since Mr. Tudor has chosen not to run for re-election, the other members of the committee will have to keep a close eye on this matter.
Mr. Pitts moved to recommend approval of staff's recommendation, seconded by Mr. Carey and unanimously carried.
Mr. Hare moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 7:25 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
RRC/DJB