REGULAR COUNCIL MEETING

The Regular Council Meeting was held on April 11, 1994 with Council President Christiansen presiding. Council members present were Mr. Lambert, Mr. Tudor, Mr. Leary, Mr. Pitts, Mrs. Malone, Mr. Hutchison, Mr. Salters and Mr. Hare.

Council staff members present were Chief Smith, Mr. Lucas, Mr. O'Connor, Mr. DePrima, Mrs. Green 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.

Mr. Arthur Naumann - 20 Pleasant Drive

Mr. Arthur Naumann of 20 Pleasant Drive stated that several years ago, the City of Dover had an all-electric rate which offered a discount for the higher usage of all-electric homes. He requested that consideration be given to reinstituting a discounted rate for all-electric homes. Also, Mr. Naumann requested that City staff research to determine when this rate classification was discontinued. The City Treasurer will research this matter and convey the information to Mr. Naumann.

The invocation was given by Reverend John Hill, followed by the Pledge of Allegiance.

AGENDA ADDITIONS/DELETIONS

Mr. Christiansen requested the addition of item #2A, entitled "Remarks by Councilman Tudor". Mr. Hare moved for approval of the agenda as amended, seconded by Mr. Hutchison and unanimously carried.

ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF MARCH 28, 1994

The Minutes of the Regular Council Meeting of March 28, 1994 were unanimously approved by motion of Mr. Lambert, seconded by Mr. Hutchison and bore the written approval of Mayor Knopf.

PROCLAMATION - NATIONAL IMMUNIZATION WEEK

The Assistant City Clerk read into the record the following Proclamation:

WHEREAS, vaccine preventable diseases such as polio, measles, mumps and diphtheria can cause illness, disabilities and even death in un-immunized children; and

WHEREAS, nationally between 40 and 60 percent, and in Delaware 50 percent, of all children up to two years old are delinquent in their immunizations; and

WHEREAS, the State of Delaware strives to meet the Centers for Disease Control and Prevention's 1996 target goal of having 90 percent of all children up-to-date with their immunizations; and

WHEREAS, it is the responsibility of parents and guardians to have their children immunized on schedule; and

WHEREAS, the Centers for Disease Control and Prevention have declared April 23-30, 1994, as National Immunization Week.

NOW, THEREFORE, I, AARON O. KNOPF, MAYOR OF THE CITY OF DOVER, DELAWARE do hereby proclaim the week of April 23-30, 1994 as, "NATIONAL IMMUNIZATION WEEK" in the City of Dover and urge all parents and guardians of preschool children to visit their private physicians or participate in special walk-in immunization clinics arranged by Delaware Health and Social Services Division of Public Health and other community agencies.

REMARKS - COUNCILMAN TUDOR

Referring to the upcoming 4th of July Celebration in the City of Dover, Councilman Tudor stated that he has composed a short letter that he would like to send out to various organizations recruiting their participation. He read into the record the following proposed letter:

"Gentlemen:

Mr. Robert Reed approached me regarding this coming 4th of July Celebration. His request was for me to obtain and erect a big American Flag at the steps of Legislative Hall. This I agreed to immediately. In our conversation it was stated, "here it all began". After all, Independence Day is truly a Dover, Delaware right and duty to celebrate and we want to do this coming event greater than ever. It was also stated that we did promise to honor, with a parade, the members of Desert Storm, but unfortunately they did not return until this past event was over. There is no excuse not to have it at this time. What did evolve out of our conversation was this: We not only owe it to Desert Storm veterans, but to all veterans -- proper recognition of what they contributed to help keep this country what it is today. With all its faults, it is still the best in the world. Desert Storm, Vietnam, Korea, World War II and other periods that called on our citizens to defend their cause will be the basic theme. This includes all branches of the service, along with Seabees and other special forces. The Chamber of Commerce made it clear that their efforts will be on other events along with the evening fireworks display. Stating such a parade will demand effort and cooperation. Volunteers to assemble a fitting event will not be easy to find. I am asking you, can we count on your group to help?"

Mr. Tudor requested Council's confirmation of his proposal to recruit such a parade in recognition of our independence. Members of Council voiced their support for the proposal. Mr. Tudor will report his progress on this project to Council.

PUBLIC HEARING - ABANDONMENT OF STREETS - KENT COUNTY AEROPARK

A public hearing was duly advertised for this time and place to consider abandonment of Starlifter Avenue and Galaxy Drive, located at Kent County AeroPark. The request was made by Kent County Levy Court and Sunroc Corporation.

City Planner, Mr. DePrima, explained that the portions of the streets to be abandoned are a part of the AeroPark development that will be deeded to Sunroc Corporation for the construction of their facility. The Planning Commission and Utility Committee recommended abandonment of the streets as requested.

Council President Christiansen declared the public hearing open.

Mr. Max Terry, attorney representing Sunroc, explained that the Sunroc facility will be built in the area that was originally planned for streets. Since the Sunroc company recently decided to locate in the AeroPark facility, there is no need for the original proposed streets.

Council President Christiansen declared the public hearing closed.

Mr. Salters moved for approval of the request to abandon Starlifter Avenue and Galaxy Drive as recommended by the Utility Committee and Planning Commission. The motion was seconded by Mr. Leary and by a unanimous roll call vote, Council adopted the following Resolution:

A RESOLUTION VACATING AND ABANDONING CERTAIN STREETS SITUATED IN THE CITY OF DOVER.

BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:

Section 1. The Council of the City of Dover hereby vacates and abandons the following streets:

ALL that certain tract, piece, or parcel of land, Galaxy Drive and a portion of Starlifter Avenue, situated in the City of Dover, Kent County, State of Delaware, Galaxy Drive lying on the northerly side of Horsepond Road and the westerly side of Starlifter Avenue, perpendicular to Starlifter Avenue being 60 feet wide and approximately 480 feet in length, comprising 28,800 square feet, more or less; a portion of Starlifter Avenue, lying on the northerly side of Horsepond Road and the easterly side of Galaxy Drive being 60 feet wide and approximately 770 feet in length, comprising 46,200 square feet, more or less.

Section 2. Since no person has been deprived of property by the vacating and abandoning of the aforesaid streets, no compensation is awarded.

Section 3. The City shall retain a utility easement for the entire length and width of the aforesaid street and all costs of conveyance shall be borne by the property owners.

Section 4. This resolution shall be effective upon the filing of a revised plot plan of the aforesaid street.

 

ADOPTED: April 11, 1994

PUBLIC HEARING - REZONING OF PROPERTY LOCATED AT 301 & 305 S. GOVERNORS AVENUE - CHERYL DEZWARTE AND WILLIAM & HELEN GOTTORF

A public hearing was duly advertised for this time and place to consider rezoning of property located at 301 and 305 S. Governors Avenue, owned by Cheryl DeZwarte and William & Helen Gottorf.

Planner's Review

The City Planner, Mr. DePrima, explained that the area is predominated by service commercial uses including to the north, two (2) automobile repair shops, a distributor of major household appliances, a motor parts store and sandwich shop. To the east are lands along North Street which are predominantly used for parking associated with commercial establishments on Loockerman Street and professional offices on South State Street and The Green. To the south are lands used for service commercial establishments including a photography studio and store, an insurance office and hair salon. The block to the west, across South Governors Avenue is the location of the Delaware State Museum (former Presbyterian Church). With the exception of the museum building and grave yard, the westerly portion of the site is largely vacant and often used for parking.

The Comprehensive Plan of 1986 recommends that this property be utilized for Central Commercial purposes. The Central Area Plan identifies the need to provide additional overnight accommodations within the Central Area and specifically recommends bed and breakfast inns as an alternative to the typical motel establishments which occur along U.S. Route 13. The Central Area Plan also recommends additional residential development in this vicinity.

The Planning Commission recommended that the rezoning to C-2 (Central Commercial) be granted because it is consistent with the zoning and permitted land uses recommended by the Comprehensive Plan for this area.

Public Hearing

Council President Christiansen declared the hearing open.

There was no one present wishing to speak during the public hearing.

Council President Christiansen declared the hearing closed.

Asked by Mr. Tudor about adequate parking for the facility, Mr. DePrima stated that the Central Commercial zone is a zone where the parking requirements do not exist since this zone recognizes the closeness of various public parking facilities and on-street parking availability.

Mr. Lambert moved for approval of the rezoning as recommended by the Planning Commission. The motion was seconded by Mr. Pitts and by a unanimous roll call vote, Council adopted the following ordinance. (The first reading of the proposed ordinance was accomplished during the Council Meeting of February 28, 1994.)

AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 301 & 305 S. GOVERNORS AVENUE.

WHEREAS, the City of Dover has enacted a zoning ordinance regulating the use of property within the limits of the City of Dover; and

WHEREAS, it is deemed in the best interest of zoning and planning to change the permitted use of property described below from RG-O (General Residence & Office) and C-3 (Service Commercial) to C-2 (Central Commercial).

NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:

1. That from and after the passage and approval of this ordinance the Zoning Map and Zoning Ordinance of the City of Dover has been amended by changing the zoning designation from RG-O and C-3 to C-2 on that property located at 301 & 305 South Governors Avenue, owned by William H. & Helen L. Gottorf and Cherly L. DeZwarte.

ADOPTED:April 11, 1994

PUBLIC HEARING - REZONING OF PROPERTY LOCATED ON HORSEPOND ROAD

A public hearing was duly advertised for this time and place to consider rezoning of property located on Horsepond Road at S. Little Creek Road, owned by William H. McDaniel, Inc.

Planner's Review

The City Planner, Mr. DePrima, explained that north of and adjoining the area of petition are lands zoned C-3 which include a cable television truck and storage yard, corporate offices, a drapery manufacturer and a ceramic shop. Further north across South Little Creek Road are lands outside the City which include numerous single family dwellings and a sign manufacturing company. The area to the northeast is predominated by lands in agricultural production. East of and adjacent to the site are lands zoned C-3 (Service Commercial) which are occupied by a fencing contractors storage yard and office. Also to the east is an electrical substation owned by the City of Dover, a food service equipment supplier and a vacant tract of land zoned IO (Institutional & Office) which is the future site of the Kent General Psychiatric Hospital. Further east, are lands in agricultural production. To the south, the site is bordered by a salvage yard operation and warehouse establishment, both of which are zoned M (Manufacturing).

The Comprehensive Plan of 1986 recommends that this area be utilized for Manufacturing and Industrial purposes and for Open Space purposes along an existing drainage way which bisects the property. The portion of the site labeled on the Plan as a perpetual easement to the United States of America coincides with the alignment of the upper reach of the Morgan Branch of the Little River drainage basin. This portion of the site has been designated by FEMA as an approximated 100 Year Flood Plain and as such would be subject to the requirements of Dover Code Chapter 7.5 (Flood Damage Prevention) as this site is developed.

The Planning Commission recommended that this request for rezoning to IPM be granted. The site is currently zoned M (Manufacturing) which permits most industrial and manufacturing uses and is considered the most permissive industrial zone. The M Zone is geared more toward the single industrial use on a stand alone property rather than for industrial park development.

The IPM Zone allows for light manufacturing uses within coordinated industrial park developments and also permits other uses such as business office uses within the context of light industry. The IPM District affords greater diversity of uses within a complex which tends to aid in the marketability of larger industrial properties such as this where multiple uses occur simultaneously.

Public Hearing

Council President Christiansen declared the hearing open.

Mr. James McGinnis, realtor representing Mr. McDaniel, stated that the IPM zone will permit them more flexibility with their manufacturing businesses, and requested Council approval of the request.

Council President Christiansen declared the hearing closed.

Mr. Hare moved for approval of the rezoning as recommended by the Planning Commission. The motion was seconded by Mr. Hutchison and by a unanimous roll call vote, Council adopted the following ordinance. (The first reading of the proposed ordinance was accomplished during the Council Meeting of February 28, 1994.)

AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED ON HORSEPOND ROAD AT SOUTH LITTLE CREEK ROAD.

WHEREAS, the City of Dover has enacted a zoning ordinance regulating the use of property within the limits of the City of Dover; and

WHEREAS, it is deemed in the best interest of zoning and planning to change the permitted use of property described below from M (Manufacturing) to IPM (Industrial Park Manufacturing).

NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:

1. That from and after the passage and approval of this ordinance the Zoning Map and Zoning Ordinance of the City of Dover has been amended by changing the zoning designation from M to IPM on that property located on Horsepond Road at South Little Creek Road, owned by William H. McDaniel, Inc.

ADOPTED:April 11, 1994

SAFETY ADVISORY COMMITTEE REPORT

The Safety Advisory Committee met on March 29, 1994 with Chairman Hare presiding.

Proposed Expansion of Police Station

A brief overview of the planned expansion of the Dover Police Station was given by Mr. Tom Becker of BM2OR, the architectural firm selected for the project. Mr. Tom Becker displayed several diagrams of the existing station and the proposed addition to the station. The existing structure totals 11,000 sq. ft., with an additional 18,000 sq. ft. planned addition, for a total of 39,000 sq. ft., at an estimated cost of $3 million. Details of the proposed expansion were explained to members of the Committee. Current code violations will be corrected such as maintaining two exterior exits and handicapped accessibility.

In anticipation of the need for additional space in the future, they have recommended that the second story roof be extended the full length of the first floor area, in preparation of future space needs. They have not yet determined the proposed cost for this alternate. Mr. O'Connor explained that the PSIISC has given some consideration to plan options that could be considered as alternates to the bidding process. They will discuss this further at their next meeting.

Asked by Mr. Salters if the total project cost included furnishings, Mr. O'Connor stated that very little new furniture will be needed since there is no addition of staff. Also, the Police Department has access to use of surplus property of the federal government. The purchase of necessary furniture will be accomplished as a part of the normal budgetary process and would be spread out over at least two budget years. Mr. O'Connor also relayed that the communications system will have to be upgraded to a higher frequency to comply with State requirements for public safety entities. The cost associated with this upgrade is not included in the total project costs. It is hoped that grants will be available to purchase the communications system.

Due to the proposed cost of the project, a bond referendum will have to be held. The PSIISC will make a recommendation on a proposed referendum date.

The committee took no official action but relayed appreciation to the members of the PSIISC for the contribution of time given to this project.

Mr. Hare moved for acceptance of the Safety Advisory Committee Report, seconded by Mr. Salters and unanimously carried.

LEGISLATIVE AND FINANCE COMMITTEE FINANCE COMMITTEE

The Legislative and Finance Committee Finance Committee met on March 29, 1994 with Chairman Salters presiding.

Adoption of 1993 BOCA Codes, Bonding Requirements and Revisions to Construction Code Appeals Committee

The City Planner, Mr. Tony DePrima, presented members with several amendments to various codes, as follows:

►    Adoption of the 1993 BOCA Building, Mechanical, Plumbing and Property Maintenance Codes. The City has been using Codes from the 1987 issue, and these changes are merely to bring the City current on the latest Code changes.

►    To consolidate construction appeals under one Construction Code Appeal Committee instead of the three committees identified in the current Code. This will bring the Code into line with actual practices. In addition, these amendments create time restrictions, notice requirements, and establishes the final authority of the committee. These matters are not clearly outlined in the Code Books currently used and has caused some problems.

►    To create a penalty for working without a permit. The amendments will cause a doubling of permit fees when work is started without a permit. It is hoped that this will discourage contractors who knowingly fail to obtain permits. The Building Inspector can waive the doubling of the fee when a person is working on his own home and was not aware that a permit was required. Currently when a contractor is found to be working without a permit, a summons is issued; however, this is time consuming for inspectors, is not uniformly applied, and often the contractor does not pay the fine.

►    Require all contractors to obtain license surety bond in the amount of $15,000. This would significantly change the way the City operates. Presently, license Bonds are only collected for plumbing contractors, and not for any other trades. The bond generally ensures the work done by the contractors to meet code standards. Projects where the work was not done according to code and the contractor refuses to correct the work would be covered by the surety bond.

Mr. Tudor stated his opinion that bonding requirements can place an undue burden on contractors. He questioned the need for electrical contractors to be bonded since they already meet this requirement through the State of Delaware. He also questioned the specified amount of $15,000 for the bond, stating that the State only requires electrical contractors to maintain a $10,000 bond.

Mr. DePrima concurred with the possible duplication in the electrical contractor category and stated that it could be eliminated from the proposed ordinance. Referring to the amount of the bond, Mr. DePrima stated that very little research went into the projected amount and offered to review the bonding requirements of other cities.

A representative of a bonding agency was present to explain the bonding process and relayed that the typical cost to a contractor for a $15,000 bond would be $100 per year. Bonding qualifications are determined by the local reputation of the contractor, past work history and length of time in business.

Mrs. Malone stated her opinion that contractor bonding would provide customer security, especially for senior citizens that are prime targets for scams, and for first time home buyers that are not experienced in contractor workmanship. Mr. Christiansen stated that although the City does not wish to impose unfair restrictions on contractors, he felt that precautions must be taken to ensure that the few unethical contractors do not take advantage of our citizens.

The committee recommended approval of the proposed ordinance amendments #1 through #11 and that amendment #12 (Bonding Requirements for Contractors) be referred back to staff for further review.

Mr. Salters moved for approval of the committee's recommendation, seconded by Mr. Hare and unanimously carried. (The first reading of the ordinances will take place during the latter part of the meeting.)

Proposed Amendments - Pension Plans

Proposed amendments to the Civilian Pension Plan were explained by Mr. O'Connor. He stated that the proposal adds a benefit to the employee's benefit plan, at a cost of approximately 2% of which the employees will pay 1% and the City will pay 1%. The amendments revise the Defined Benefit Plan and create an optional Defined Contribution Plan which will be tied to Deferred Compensation arrangements. All new employees will be required to participate in one of the Plans. Essentially, for the Defined Benefit Plan, the proposal will:

(1) Improve the retirement formula for persons who retire on or after 1/1/95.

(2) Increase the mandatory employee contribution rate from 2.5% to 3.5% of salary, effective May 1, 1994, and allow employee contributions to be on a pre-tax basis. (The employee contribution on a pre-tax basis will be an amendment to both the Civilian and Police Pension Plans.).

(3) Changes the eligibility for an unreduced benefit from no minimum age to a new standard of at least age 55 and age and service must equal 80 for employees hired after May 1, 1994.

    (4) Change the definition of eligible employee to be for full time employees only.

For the Defined Contribution Option, the basic provisions of the Plan are:

    (1) The minimum employee contribution rate is 2.0%. Employees may contribute pre-tax dollars up to the legal limit of the plan as defined by the tax code.

    (2) The City will make a 100% matching contribution up to a maximum of 5% of the employee's pay.

    (3) The individual employee may select from two retirement plan sponsors and will direct the investment of the contribution to their own accounts.

    (4) Withdrawal from the account is only possible at time of retirement, termination of employment, or unforeseeable emergency as defined by the IRS.

All current and future active employees will have an option to make a one-time, irrevocable decision to join the deferred compensation plan or remain in the current defined benefit plan. If a current employee decides to transfer to the deferred compensation plan, his employee contributions, with interest from the defined benefit plan, will be paid out and the employee will forfeit any future benefits from the defined benefit.

Administrative changes proposed will:

    (1) Add a new section which will assure that upon the death of a member or retiree that a beneficiary or the estate will receive all of the members' contribution.

    (2) Retired persons may now be re-employed by the City in a temporary capacity so long as the compensation does not exceed social security limitations.

    (3) The Board will be expanded from six to seven members by the addition of the Finance Director/Treasurer.

Since the proposal will require increased employee contributions, an employee vote was taken on the proposal, with 243 employees voting in favor of the changes and five voting in opposition. Mr. O'Connor stated that the employees will reap an additional benefit from the amendments, but at the same time, the City will be minimizing its exposure. Also, the City will offset some of its costs with the savings from the new retirement age/service requirements and the unfunded liability exposure should be substantially reduced in this area.

Mr. Leary, Chairman of the Pension Board, stated that the Pension Board is charged with protecting the funds of the taxpayers and also with providing adequate pension measures for our employees. He stated that the proposal will benefit the City by reducing the potential increase in its unfunded liability, and it provides City employees with an opportunity to participate in an excellent pension plan.

The committee recommended approval of the proposed amendments as recommended by the Pension Boards and staff.

Mr. Salters moved for approval of the committee's recommendation, seconded by Mr. Hare and unanimously carried. (The first reading of the ordinances will take place during the latter part of the meeting.)

Financial Information - Investors

The City has $92.5 million of bonds as of June 30, 1993, of which $52 million are defeased, with $40.5 million of the bonds on our books as the City's liability. It is extremely important to maintain positive relations with investors and to provide them with continuous information about the City's finances.

The National Federation of Municipal Analysts has instituted a program in which the City can show its willingness and commitment to provide the necessary financial information to a central repository. The Federation requires a Council Resolution. City Treasurer, Mike Karia, recommended approval of the Resolution, stating that the City already provides this information to many financial institutions. Therefore, additional time and expense will not be incurred and he felt that participation in the program would benefit the City.

The committee recommended approval of the proposed Resolution.

Mr. Salters moved for approval of the committee's recommendation. The motion was seconded by Mr. Hare and Council unanimously adopted the following Resolution:

WHEREAS, the City of Dover (the City) has outstanding securities in the state and local government securities market; and

WHEREAS, the City appreciates the support of the investment community for the financing efforts of the City; and

WHEREAS, the maintenance of ratings for the City's rates securities depend in part upon the continued availability of information to the rating agencies; and

WHEREAS, the City has been informed that the liquidity of its securities in the secondary market may be affected by the availability of information and maintenance of ratings; and

WHEREAS, the City desires to receive a Certificate of Recognition from the National Federation of Municipal Analysts, and the adoption of this Resolution is a condition to the award of such a Certificate, although the City also recognizes that a Certificate of Recognition does not imply in any manner a positive or negative judgment as to the accuracy and sufficiency of its disclosure documents.

NOW, THEREFORE, the City hereby makes the following commitments to its investors:

1.  The City will provide annual audited financial statements and other pertinent credit information relevant to the City's outstanding securities (which may be contained in official statements), including the City's Comprehensive Annual Financial Report upon request, and will provide copies to one or more major information providers in the state and local government securities market.

2.  If an issue is rated, appropriate periodic credit information necessary for maintaining the rating(s) on the securities will be provided by the Issuer to the rating agency(ies) rating the securities.

3.  A statement will be made by the City in the Introduction to its official statements evidencing the commitments made herein.

ADOPTED: April 11, 1994

Mr. Salters moved for acceptance of the Legislative and Finance Committee Finance Committee Report, seconded by Mr. Hare and unanimously carried.

UTILITY COMMITTEE REPORT

The Utility Committee met on March 29, 1994 with Chairman Lambert presiding.

Quarterly Fuel Adjustment Review

The City reviews its Fuel Adjustment projections at least quarterly and modifies its fuel adjustment in December on a levelized basis for the next calendar year. The current fuel adjustment is set at -$0.00255 per KWH. The 1994 fuel adjustment was set at this level in order to refund a surplus in the fuel adjustment fund.

The current cost for low sulfur oil is $18.03 per barrel ($0.43/gallon). The price of oil has gone from a low of $14.82 a barrel in December 1993 to a high of $20.78 in February and back down to the current price of $18.03. Market conditions point to a continued fall in prices at least through the summer. The fuel fund has a balance at the end of February 1994 of $6,358,331.51. Mr. O'Connor recommended that the fuel adjustment remain as it is currently set, stating that it is currently set at a negative number to refund a surplus in the fund. He stated that if the price of fuel continues to fall, a further reduction can be considered by Council.

Mr. Tudor expressed his opinion that the fund balance is extremely high, reminding members that Council set a policy to maintain a fund balance of no less than $1 million. He stated that a continued reduction in the cost of fuel is projected and relayed his opinion that the City has an obligation to refund the excess funds to its electric customers.

Mr. O'Connor reminded Committee members that there have been extreme swings in the price of oil during the past few months. Since the fuel adjustment rate is already set at a negative number, he recommended that the committee defer any rate changes until the cost of oil has dropped to a range of $11 to $13 per barrel. Should this occur, he will bring the matter back to the committee for immediate action.

Mr. Lambert stated that the new fuel adjustment rate was only set in January and he felt we should wait a little longer before making another change. Also, if the rates are reduced during the month of June, effective for July billings, electric customers will receive the reduction during a period of heavier use.

Since a Committee recommendation to make no change at this time failed by a tie vote, the matter was brought to Council with no recommendation from the committee.

Mr. Lambert reminded Council that they decreased the fuel adjustment rate in August 1993 and again in January 1994 in an effort to lower the excess funds in the account. He suggested that the rate remain as currently set until June. If at that time there has been no significant change in the balance, then the City Manager could be directed to present a plan to ensure a reduction. Mr. Lambert felt it important to delay action until June to assure the cost of oil does not drastically change.

Mr. Lambert moved to leave the fuel adjustment rate as currently set for further evaluation in June. The motion was seconded by Mrs. Malone.

Mr. Tudor reiterated his belief that the Council has an obligation to refund this money to the rate payers. Should the price of fuel begin to increase drastically, Council could adjust the fuel adjustment rate. He felt it unfair of the City to hold $6 million in abeyance when the policy only requires a fund balance of $1 million.

Noting that City staff is projecting that fuel costs will continue to decline, Mr. Hare stated his opinion that the rate should be lowered now so that citizens in need of the lower rate will have access as soon as possible. Mr. Salters and Mr. Leary concurred, with Mr. Leary stating that there is no rational economic reason to believe that the price of oil will rise and that in fact, it is predicted that the cost of fuel oil will continue to decrease.

Mr. Lambert withdrew his motion, as did Mrs. Malone her second.

Mr. Lambert moved that the City Manager report to Council at its next meeting a proposal for reducing the fund balance, with a lowered fuel adjustment rate to become effective for billings after May 1, 1994. The motion was seconded by Mr. Salters and unanimously carried.

Delmarva Power & Light - Offer to Pay for Independent Evaluation of Offer to Purchase Power System

A letter from Mr. Ray Landon, Executive Vice President of Delmarva Power & Light Company, relayed that DP&L is willing to pay the costs associated with hiring an independent third party to evaluate their offer to buy the City's electric system. Their proposal is to find a mutually agreeable major accounting firm, brokerage firm or investment banking company to review the proposal and report back within 30 days.

Mr. Tudor objected to the proposal, feeling that City Council has an obligation to make a decision on Delmarva's offer and that the obligation cannot be transferred to another entity. He reminded the committee recommended that City staff has been directed to review the proposal and other options available to the City for a report to Council. He felt that no action should be taken by Council until this report has been made by staff.

Other members of Council concurred that Council should continue in its current direction and that City staff should be given ample opportunity to review the proposal and to report their findings to Council. Some members of Council stated that their dismay at the tactics taken by Delmarva Power in attempting to pressure Council into making a quick decision.

Mr. Hare stated his opinion that Council should allow Delmarva to pay for the third party review. He stated that the review will provide additional information to members of Council that will assist in the decision making process. He stated his feeling that Council has an obligation to let Delmarva know if the City has an interest in selling and to give some time limit for review of their proposal.

Mr. Leary stated that consideration of sale of our power system is a serious and far reaching decision that requires very careful review and consideration. He felt that Council should allow City staff to take whatever time is necessary for proper review and recommendation.

It was noted by Mr. O'Connor that when City Council gets to the point of considering alternatives, a third party will be used since the City has insufficient staff to handle this aspect of the proposal. He reminded Council that the value of the system is directly related to the number of alternatives available to make money from the system. It would be impossible to consider only one offer, in a vacuum, unless the sale would be based simply upon appraisal of the assets. City staff is utilizing many available sources to assist with its review and recommendation. He anticipates that staff will be prepared to submit the findings of their research to Council within the next 30 days.

The committee recommended acknowledgement of receipt of the offer from Delmarva Power & Light, but that City staff be directed to continue their review of Delmarva's offer to purchase the City's power system in accordance with the guidelines already set by Council.

Noting that the motion essentially acknowledges receipt of the letter, with no recommendation for new action by Council, Mr. Lambert requested that consent be given to allow notification to Delmarva of the committee's recommendation as soon as possible to afford them a response in a timely manner.

In order to afford a response to Delmarva in a timely manner, Mr. Christiansen suggested that Mr. Lambert and Mr. O'Connor be permitted to notify Delmarva of the committee's recommendation. No further action was taken by Council

Mr. Lambert moved for acceptance of the Utility Committee Report, seconded by Mr. Hare and unanimously carried.

APPOINTMENTS - DOWNTOWN DOVER DEVELOPMENT CORPORATION

Mayor Knopf requested Council confirmation of the reappointment of Gary Patterson, Robert Berglund and William Witham to the Downtown Dover Development Corporation. The term of office is for three years, to expire on April 23, 1997.

Mr. Hare moved for confirmation of the appointments, as recommended by Mayor Knopf. The motion was seconded by Mr. Salters and unanimously carried.

ANNEXATION/REZONING REQUEST - 385 ACORN LANE

A request was received for annexation and rezoning of property located at 385 Acorn Lane, owned by Lawrence & Margaret DiEmidio. Staff recommended that the request be referred to the Utility Committee on April 26, 1994, that an annexation referendum be set for May 12, 1994 and that a public hearing be set for May 23, 1994.

Mr. Salters moved for approval of staff's recommendation. The motion was seconded by Mr. Hutchison and Council unanimously acknowledged the first reading of the following ordinance, by title only, and adopted the following resolution:

AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER AND CALLING FOR A SPECIAL ELECTION TO BE HELD IN THE SAID AREA.

A RESOLUTION PROPOSING THE INCLUSION OF AN AREA WITHIN THE LIMITS OF THE CITY OF DOVER AND CALLING FOR A SPECIAL ELECTION TO BE HELD IN THE SAID AREA.

WHEREAS, the Charter of the City of Dover authorizes Council to extend the boundaries of the said City after a special election of the qualified voters and real estate owners of the territory proposed to be annexed, and

WHEREAS, the Mayor and Council of the City of Dover deem it in the best interest of the City of Dover to include an area contiguous to the present City limits, and hereinafter more particularly described within the limits of the City of Dover, within a zoning classification as recommended by the City of Dover Planning Commission.

NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:

1. That a special election be held for the following described area situated in East Dover Hundred, Kent County, State of Delaware, and more particularly described and bounded herein:

ALL that certain lot, piece or parcel of land and premises, situated on the West side of a road leading from the North Little Creek Road to the White Oak Road and known as Acorn Lane, in East Dover Hundred, Kent County and State of Delaware, and more particularly described by metes and bounds, courses and distances, as follows, to wit:

BEGINNING at a point in the center of the aforesaid Acorn Lane, said point of beginning being North 8 degrees 25 minutes West of and seventy-seven (77) feet from a corner for lands now or formerly of James Melvin and wife; thence running from said point of beginning with other lands now or formerly of Oscar A. Reed South 80 degrees 52 minutes West one hundred eighty-five (185) feet to a new corner now established for this parcel and for other lands now or formerly of Oscar A. Reed; thence running a new line now established separating this parcel from other lands now or formerly of Oscar A. Reed North 8 degrees 25 minutes West two hundred (200) feet to a new corner now established for this parcel and for other lands now or formerly of Oscar A. Reed; thence running another new line now established separating this parcel from other lands now or formerly of Oscar A. Reed North 80 degrees 52 minutes East one hundred eighty-five (185) feet to a new corner now established for this parcel and for other lands now or formerly of Oscar A. Reed and in the center of the aforesaid Acorn Lane; thenc