COUNCIL COMMITTEES
The Council Committees Meeting was held on September 13, 1994, 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. Weyandt, Mr. Salters, Mr. Hare and Mayor Hutchison.
AGENDA ADDITIONS/DELETIONS
Mr. Weyandt requested the deletion of item #2, Seating Arrangements in Chambers, from the Legislative and Finance Committee agenda. Mr. Lambert requested the addition of item #5, Timeline - General and Power Supply Options Plan, to the Utility Committee agenda.
Mr. Weyandt moved for approval of the agenda as amended, seconded by Mr. Leary and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Salters presiding. Members present were Councilmen Leary and Weyandt and Mr. William Schaeffer.
Proposed Ordinance Amendment - Section 11-8 - Surety Requirements for Contractors
As requested by members during their meeting of March 29, 1994, Mr. DePrima, City Planner, presented a proposed ordinance amendment to Section 11-8 of the Dover Code. He explained that staff reviewed similar ordinances from other communities. The proposed amendment would require license surety bonds, in the amount of $15,000, for all contractors working on residential structures. Building permits could not be issued without having a bond on file. He also stated that projects where work or material was defective, and the contractor refuses to correct the work as prescribed by the building inspector, would be covered by the surety bond. In addition, any fees owed would also be covered by the bond.
Mr. Weyandt felt that the proposed ordinance should be amended to require surety bonds for commercial contractors as well as residential contractors. Responding, Mr. DePrima explained that larger commercial contractors are generally bonded. He stated that the proposed ordinance was crafted in an attempt to eliminate those contractors that are not reputable. He advised members that the proposed ordinance would address the majority of situations by allowing the City to assist those homeowners that are unfamiliar with contractors and their work and contractors taking advantage of the homeowners.
Noting that the surety bond would be inclusive of all jobs being performed in the City for the entire year, some members suggested that the required amount of the bond be increased to $75,000.
Mr. Tudor advised members that the State of Delaware requires surety bonds for all licensed contractors. He relayed concern with the City also requiring such bonds, feeling that matters should be resolved through the State of Delaware. When building a home, although there is only one building permit, which is required to be obtained by the general contractor, there are several subcontractors that assist in building the home. As an example, Mr. Tudor stated that if a homeowner had a roof that leaked, the general contractor may not have been the individual that installed the roof. He felt that the proposed ordinance would require additional staff in the Inspections Department to handle such claims, testify in court, etc. Mr. Tudor reminded members that customers that desire protection when building their home, have the right to request the contractor to provide a surety bond for that particular job. He advised members that a surety bond will cost a contractor an average of 1.5% of the total costs for the job and that the costs are usually passed onto the customer.
Responding to Mr. Lambert, Mr. DePrima stated that a homeowner would advise the City of Dover of their concerns with a contractor's work. Staff would be required to determine if the contractor's work was defective as indicated in the proposed ordinance. The City would then write a letter to the bonding company giving the opinion that the contractor was not in compliance with the Code. The bonding company would send an agent to investigate and, if they concurred with the City's opinion, the bonding company would immediately settle the claim with the homeowner. At that time, the bonding company would attempt to settle the claim with the insured contractor.
Although he concurred with requiring contractors to be bonded, Mr. Weyandt felt that the City should not be liable in such matters.
After much discussion, Mr. Schaeffer moved to recommend adoption of the proposed ordinance as recommended by staff (Attachment #1). The motion was seconded by Mr. Leary and carried with Mr. Weyandt voting no.
Budget Revisions
The Finance Director, Mr. Mike Karia, presented members with proposed budget revisions, as follows:
General Fund - Receipt Estimates
Current +Addition Revised
Receipt Estimate -Reduction Budget
Franchise Fees $205,000 - $ 9,198 $195,802
Beginning Balance 554,394 +315,080 869,474
General Fund - Expenditures Budget
Current New
Item Budget Additions Budget
Police $6,022,543 $ 48,500
60,000 $6,131,043
Current Year's
Operating Expense -0- 197,382 197,382
Electric Fund - Fuel Related Item - Revenues
Current New
Revenue Budget Addition Budget
Beginning Balance $4,754,920 $604,699 $5,359,169
Mr. Karia advised members that budget revisions for the Water/Wastewater Fund and Electric Fund have not been finalized and will be presented at a later date.
Mr. Weyandt moved to recommend acceptance of the budget revisions as presented by staff, seconded by Mr. Leary and unanimously carried.
Investments - Bond Related Accounts
The City of Dover currently has outstanding Water/Sewer and Electric Bonds in the amount of $47 million. The City makes monthly debt service payments to the trustees on these bonds. The trustees invest these monthly funds on a very short-term basis, since interest and principal payments are paid out in January and July.
Mr. Karia, Finance Director, advised members that staff has been reviewing a new concept that proposes to provide ways of increasing the interest earnings on these monthly funds. This concept would require the City to enter into an agreement by which long-term treasury securities can be purchased, thus providing the City higher interest rates. The provider of the arrangement will deliver the treasury securities to our trustees and the provider will receive cash in return. Every January and July, the trustees will return the treasury securities to the provider who will return the cash to the trustees in order to make the necessary payments to the bondholders. Mr. Karia estimated that the City would make $45,000 in additional interest earnings; however, the actual additional earnings would depend on the rates at the time the arrangement is finalized. He assured members that there would be no risk involved since the treasury securities are issued by the United States Government.
Mr. Karia also advised members that the trustees have $4.3 million in the debt service reserve account for the bondholders. Currently, these funds cannot be invested for 15 to 20 years and have to be invested for a five (5) year period, as per the bond resolution, to provide the liquidity guarantee to the bondholders. He explained that the City can enter into an agreement, for a fee, with a third party (Morgan Guarantee Bank) whereby the liquidity is guaranteed to the bondholders. This would allow the trustee to invest the funds for a longer period of time, thus, providing a higher interest rate (7.25%) as compared to the shorter period of time (6.50%). Mr. Karia estimated that the City would make $50,000 in additional interest earnings after payment of the fees for the liquidity agreement. He stated that there would be little, if any, risk since the agreement would be with a "Triple A" rated bank and the trustees would hold the investments, noting that the investments will be in treasury securities issued by the United States Government.
Mr. Karia explained that these proposals regarding the investment of bond related accounts were presented to staff by the securities of Wheat, First, Butcher and Singer of Philadelphia. He stated that staff and Councilman Leary have met with representatives of Wheat, First, Butcher and Singer to discuss the concept and the risk that would be involved, as well as follow-up telephone conversations. Staff recommended that Councilman Leary and the Finance Director be authorized to proceed with the investment of bond accounts with Wheat, First, Butcher and Singer. Mr. Karia explained that a final report of actual additional interest earnings would be presented to the Committee upon finalizing the arrangements.
Mr. Leary moved to recommend approval of staff's recommendation, seconded by Mr. Weyandt and unanimously carried.
Mr. Weyandt moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 8:05 P.M.
PARKS AND RECREATION COMMITTEE
The Parks and Recreation Committee met with Chairman Pitts presiding. Members present were Councilwoman Malone, Councilman Tudor, Mrs. Maxted and Mr. Caballero.
Payment in Lieu of Open Space - Mallard Crossing Subdivision
In accordance with Article VI, Section F-2 of the Subdivision Regulations, members considered accepting a cash donation in the amount of $12,190 in lieu of parkland for the proposed Mallard Crossing Subdivision, as recommended by the Planning Commission. This represents 10% of the value of the land area of the development as determined by the City Assessor. No land donation is requested or would be required.
Mr. DePrima advised members that the property owner appealed the valuation of the land area as determined by the City Assessor. The City Assessor re-evaluated the properties and has revised his valuation from $121,900 to $50,000; therefore, the amount of the cash donation in lieu of parkland for the subdivision would be $5,000, representing 10% of the value of the land area of the development.
Mr. Lucas stated that the original $121,900 valuation of the properties will be utilized for taxation. He explained that the developer presented contracts of sales that indicated that the developer is actually paying $50,000 for the properties; therefore, it is difficult to value the property for more than what is actually being paid for the property. Based on the contract of sales, the valuation was readjusted. He assured members that the contracts of sales are between two disinterested parties.
In accordance with Article VI, Section F(2), of the Land Subdivision Regulations, a property owner may appeal the appraised value as determined by the City Assessor. This would then require an appraisal of the land by three (3) qualified real estate appraisers, one of whom shall be selected by the City, one of whom shall be selected by the subdivider, and the third shall be selected by the two (2) appraisers already selected.
Mrs. Malone relayed concern with the effect that the change in the amount of the cash donation could have on the Planning Commission's recommendation. Mr. DePrima advised members that the Planning Commission does not determine whether a cash donation should be accepted in lieu of land based on the amount of cash that would be received. Their decision is based on the amount of land available and its value for recreational purposes.
Mr. DePrima explained that the property is located on Route 8, approximately 800 feet east of Heatherfield Way, consisting of 2.72+/- acres of land and that 24 townhouse lots are proposed to be constructed. He stated that the Planning Commission, on the advice of the Parks and Recreation Department, determined that there is sufficient adjacent open space land that will be proposed for dedication to the City by Mallard Pond Associates who are part owners of the Mallard Crossing Subdivision lands. The open space, which is approximately six (6) acres, was formerly a private open space requirement for the development of Mallard Pond Subdivision. The dedication of this land was a condition for the approval of the cash donation. Should the donation not occur then open space should be located on the site.
Mr. O'Connor stated that the developer has offered to dedicate approximately 6 1/2 acres of land, located adjacent to the proposed subdivision, to the City as open space. Due to settling ponds located on this site, staff has delayed the acceptance of the land as open space. He stated that the developer is attempting to obtain the necessary permits to rebuild the ponds into a small depression. Should the developer rebuild the ponds to meet City specifications, staff may recommend acceptance of the land as open space; however, since this has not been accomplished, the cash donation in lieu of parkland was preferred.
Mrs. Malone moved to recommend acceptance of a cash donation in the amount of $12,190 in lieu of parkland for the proposed Mallard Crossing Subdivision. The motion was seconded by Mr. Tudor and unanimously carried.
Mrs. Malone moved for adjournment, seconded by Mr. Tudor and unanimously carried.
Meeting Adjourned at 8:24 P.M.
SAFETY ADVISORY COMMITTEE
The Safety Advisory Committee met with Chairman Hare presiding. Members present were Councilwoman Malone, Councilman Pitts and Mr. Coleman.
Presentation - Delaware Emergency Management Agency
Mr. Ron Gough, Public Information Officer for the Delaware Emergency Management Agency (DEMA), gave a presentation on the services of his organization. The agency is located in Delaware City in an underground bunker complex, which was built in 1898, on the grounds of Governor Bacon Health Center. Mr. Gough advised members that Delaware is continuously faced with both man-made and natural disasters. From January 1994 to the present, Delaware has endured 16 winter storms (with damage in the millions of dollars), two (2) northeasters, two (2) confirmed tornados, numerous downbursts, downdrafts and wind shears, tremendous thunder and lightning storms, and severe flooding in northern Delaware. Delaware has also had manmade disasters, including two (2) refinery fires, a plume of chlorine that was released into the atmosphere and an abnormal event at a nuclear power plant.
Mr. Gough stated that the role of DEMA is to protect the public in the State of Delaware and explained their responsibilities during times of disasters in regards to public safety, which consists of four (4) distinct phases: 1) mitigation; 2) preparation and training; 3) response; and 4) recovery. He provided members with brochures on disaster planning, evacuation routes, and recovery issues and an invitation to visit DEMA's facilities to provide a better understanding of their emergency response team and the capabilities of the State agency.
Responding to Mrs. Malone, Mr. O'Connor stated that the City's Emergency Operations Director has been attending seminars provided by DEMA and will be updating the City's emergency plan.
Proposed Ordinance Amendment - Section 13-38 - Parking at Intersections
Staff presented members with a proposed ordinance amendment to Section 13-38 of the Dover Code concerning parking near intersections. Mr. O'Connor explained that there have recently been problems with parking at intersections and the lack of flexibility regarding this issue. Although the proposed amendment would maintain a standard, it would also give the Chief of Police or the City Manager authority to address unique problems that may arise.
Mrs. Malone moved to recommend approval of the amendment to Section 13-38 of the Dover Code (Attachment #2). The motion was seconded by Mr. Coleman and unanimously carried.
Request for Parking Permits - 200 Block of North Bradford Street
In accordance with Section 13-40 of the Dover Code, City Council designates residential parking areas, providing residents with parking stickers which will allow their vehicle to be exempt from the two-hour parking regulations in only the specified area. Members received a petition from residents of the 200 block of North Bradford Street, requesting Residential Parking Permits. The residents indicated that due to the close proximity of Wesley College, it is quite difficult to find parking on North Bradford Street. Staff recommended that the 200 block of North Bradford Street be designated as a residential parking area and provide residents with parking stickers.
Mrs. Malone moved to recommend approval of staff's recommendation, seconded by Mr. Coleman and unanimously carried.
As suggested by Council President Christiansen, members recommended that Section 13-40, Residential Parking, of the Dover Code be amended to authorize the City Manager, Chief of Police and the Chairman of the Safety Advisory Committee to designate areas for residential parking without requiring the approval of City Council (Attachment #3).
Discussion - Proposal for Curfew Ordinance (Mr. Pitts)
Due to the problems involving young people in the downtown Dover area, Mr. Pitts has been investigating the possibility of the City of Dover instituting a curfew ordinance. Since reviewing this matter, he advised members that several citizens and organizations have provided additional suggestions and alternatives in an attempt to relieve these problems. Mr. Pitts stated that although a curfew ordinance is being considered, they are also considering the establishment of a loitering ordinance, youth, parental and community involvement, additional policing, etc. A meeting will be held on Wednesday, September 21, 1994 at 7:00 p.m. at the Mt. Zion Church located at Queen and Fulton Streets for anyone interested in assisting the City in solving these problems. Mr. Pitts requested that, at this time, the City support his endeavor in developing a solution to these problems. Once a recommendation has been established, the matter will be presented to the committee for consideration.
Noting that the young people are creating problems during school hours, Council President Christiansen suggested that the Capital and Caesar Rodney School Districts also be involved in solving this problem by enforcing a daytime curfew.
Members felt that the City should move forward in developing a solution and relayed their support to Councilman Pitts.
Mrs. Malone moved for adjournment, seconded by Mr. Coleman and unanimously carried.
Meeting Adjourned at 9:12 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Lambert presiding. Members present were Councilmen Hare and Tudor and Mr. Carey.
Request to Waive Street Width Requirements - Mallard Crossing Subdivision
Members considered a request to waive the street width requirements for the proposed Mallard Crossing Subdivision. The waiver would reduce the 38 foot roadway, which is required under Article VI, Section A of the Subdivision Regulations, to allow for 28 foot street widths.
Mr. DePrima, City Planner, stated that the project proposes 24 townhouse lots, on 2.72+/- acres, located on Route 8, approximately 800 feet east of Heatherfield Way. He advised members that the Planning Commission approved the conceptual plan for the subdivision, proposing the 28 foot street widths. The 28 foot street width is being requested for the following reasons:
1.The project has homes proposed on only one side of the street.
2.The project is located on a minor local street that would only be used by the residents of the development and their guests.
3.The narrower street width would create a larger buffer area on the north side of Mallard Way as requested by the neighboring residents in Heatherfield East.
4.The narrower street width creates a less impervious surface which in turn creates less stormwater, non-point water pollution, and requires less land to be set aside for stormwater ponds.
Mr. DePrima assured members that the Fire Department supported the request, with the stipulation that parking be permitted on only one side of the street.
Mr. Hare moved to recommend approval of the request to waive the street width requirements and allow 28 foot street widths for the proposed Mallard Crossing Subdivision, stipulating that parking be permitted on only one side of the street. The motion was seconded by Mr. Carey and unanimously carried.
McKee Run Unit #3 - Boiler Modifications - Material Purchase
McKee Run Unit #3 incorporates a steam generator manufactured by Riley Stoker Corporation. This boiler entered commercial operation in 1975 and has required a number of upgrades, modifications, and replacements to maintain reliable operation. The last replacement of the primary superheater supports, lugs, and clamps was performed in 1989 utilizing the original equipment materials. By 1991, these components were severely damaged from high temperature corrosion and vanadium attack. The existing primary superheater supports, lugs and clamps are severely damaged, due to high temperature corrosion, to the point that primary superheater pressure parts are no longer supported and are becoming degraded.
Mr. O'Connor advised members that the Riley Stoker boiler was originally purchased with an eight (8) burner configuration. The existing eight burner configuration has been a significant contributor to historic problems of furnace vibration, soot emissions, flame impingement, and high furnace exit gas temperature (contributing to high temperature corrosion). The existing burner configuration is also conducive to increased NOx emissions. As part of a NOx reduction plan for Unit #3, staff recommended the installation of a ninth burner.
As requested by staff, Riley Stoker submitted a proposal of $90,500 to supply primary superheater support components of an upgraded material and to engineer and supply the materials to permit the installation of a ninth burner. Mr. O'Connor advised members that as the original boiler supplier, Riley Stoker is best suited to provide the materials and engineering to support the primary superheater component upgrade and material supply. Riley Stoker is also best suited to engineer and supply the modifications and materials to support the addition of a ninth burner. Staff recommended that a purchase order be issued in the amount of $90,500 for: 1) the supply of primary superheater support components of an upgraded material; and 2) the engineering and materials to permit the installation of a ninth burner.
Mr. Hare moved to recommend approval of staff's recommendation, seconded by Mr. Carey and unanimously carried.
Bid - 22KV Circuit Loop
Bids were solicited for building a new electric circuit to create a Loop Feed on the 22KV transmission line. The City's existing 22KV circuit is a radial feed which is not a standard configuration. The making of a loop feed for the 22KV circuit will insure the Mid City Substation and the transmission loop are more reliable. Staff recommended awarding the bid to the low bidder, Fry Construction, in the amount of $39,000 for rebuilding the Mid City pole line to support 22KV circuit loop feed.
Mr. Hare moved to recommend approval of staff's recommendation, seconded by Mr. Tudor and unanimously carried.
Impact Fee Ordinance Revisions - Section 22-257
Staff presented members with proposed ordinance amendment to Section 22-257 of the Dover Code concerning impact fees. Mr. O'Connor explained that since the commencement of the Kent County Impact Fee in September 1993, several questions and concerns have been raised regarding the consistency and accuracy of the City's procedure in determining Impact Fees. The proposed amendments are designed to make the City's procedure more consistent with the Kent County Impact Fee regulations, which define the method of determining EDU's throughout the County, including within City limits, and to codify interpretations of the procedure which have occurred since the original adoption of the ordinance.
Mr. Hare moved to recommend adoption of the proposed ordinance amendment to Section 22-257 of the Dover Code (Attachment #4), as recommended by staff. The motion was seconded by Mr. Tudor and unanimously carried.
Timeline - Generation and Power Supply Options Plan
As authorized during the Regular Council Meeting of August 22, 1994, staff presented members with a timeline, prepared by the Canyon Group, for Phase I of the generation and power supply options plan. The Phase I timeline describes those tasks that the City should begin review of and accomplish between now and the end of January 1995. Phase I includes three (3) major tasks, as follows: 1) takes Dover through a complete review of current conditions and forecasts expected changes in those conditions; 2) solicits serious bids for Dover's business through a Request for Proposal process; and 3) completes a professional review of all proposals, develops a "short list" of proposals, and establishes a process for Phase II (negotiations). The timeline provides both a broad outline of major tasks and specifies the time by which each task needs to be completed.
Noting that the committee did not have a meeting since August 9, 1994, Mr. Lambert stated that in accordance with the Timeline, actions were necessary; therefore, he authorized the City Manager to proceed with the Timeline. He assured members that during the past two (2) weeks, the actions that have taken place were necessary and did not involve any significant cost factors.
Mr. Hare moved to recommend acceptance of the Phase I Timeline for the generation and power supply options plan, as presented by the Canyon Group. The motion was seconded by Mr. Tudor and unanimously carried.
Mr. Hare moved for adjournment, seconded by Mr. Tudor and unanimously carried.
Meeting Adjourned at 9:50 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
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