COUNCIL COMMITTEES

The Council Committees Meeting was held on January 25, 1994, at 7:00 p.m., with Council President Christiansen presiding. Members of Council present were Mr. Hare, Mr. Hutchison, Mr. Lambert, Mrs. Malone, Mr. Salters, Mr. Tudor and Mayor Knopf. Mr. Leary and Mr. Pitts were absent.

AGENDA ADDITIONS/DELETIONS

Mr. Hare moved to accept the agenda as submitted, seconded by Mr. Hutchison and unanimously carried.

LEGISLATIVE AND FINANCE COMMITTEE

The Legislative and Finance Committee met with Chairman Salters presiding. Councilman Hare was present. Councilman Tudor and Councilwoman Malone were deputized to serve in the absence of Councilman Leary and Mr. Hindman.

COMPREHENSIVE ANNUAL FINANCIAL REPORT - 1992/93

The City's Annual Financial Report for fiscal year 1992/93 was prepared and published by the Finance Department and is audited by the independent certified public accounting firm of Faw Casson & Company. The Comprehensive Annual Financial Report for fiscal year ended June 30, 1992 was submitted by Mike Karia, Finance Director/Treasurer. Ms. Janis Nesterak of Faw Casson & Company explained that the report shows the City's financial controls and procedures to be in very good order.

Mr. Salters relayed concern regarding an item found on page 22, first paragraph, line five, which indicates: "No guidelines are provided for limiting the levels which expenditures may legally exceed appropriations. No guidelines are established to deal with any overspending as compared to the budgets". It was Mr. Salters' feeling that the City should establish guidelines that would prevent departments from spending money that has not been budgeted.

Responding, Mr. Hare felt that the current policy of requiring departments to submit budget amendments addresses those concerns. If additional guidelines are established, Mr. Hare felt that it may restrict the City from spending funds that are absolutely necessary.

Mr. O'Connor stated that although budget amendments are presented to Council for approval, the actual expenditure could have occurred prior to the presentation of the amendments. He explained that there could be an emergency situation whereby it is necessary for the actual expenditure to occur prior to the submission of budget amendments. Mr. O'Connor also felt that it is necessary to maintain flexibility so that staff would be permitted to react in an emergency situation. To address those concerns noted in the CAFR, he suggested that he work with the Finance Director to assure that departments are adhering to the present policy.

Mr. Lambert reminded members that during the budget hearings, he relayed concern with deferring maintenance of streets. Noting that when the budget amendments were presented, there was a beginning balance in the General Fund, Mr. Lambert suggested that this money be earmarked for maintenance of streets. This would allow a certain amount of funds to be identified for street maintenance in the following year's budget.

Responding, Mr. Karia explained that in July, staff submits the unaudited figures to Council and staff begins the budget preparation. He suggested that staff present options for the use of such funds.

In response to Mr. Tudor, Mr. O'Connor stated that he has reviewed the City's past policies regarding the funds designated for street maintenance and improvements. He relayed concerns with utilizing bond money for street resurfacing; however, he was comfortable with utilizing bond money for new construction. Mr. O'Connor also relayed concern with the priority listing of streets to be resurfaced. He explained that although there is a listing of streets that have been identified to be resurfaced, he felt that subjective decision making is also necessary. He advised members that it is his intention to amend the current street maintenance and improvement policy.

Mr. O'Connor advised members that he has requested the Finance Director/Treasurer to work with the Administrative Services Director which will allow a more active role by the Treasurer in the preparation of the budget than in previous years.

Mr. Hare moved to recommend acceptance of the Comprehensive Annual Financial Report for fiscal year ended June 1993, stipulating that staff consider the concerns that have been noted. The motion was seconded by Mrs. Malone and unanimously carried.

Mr. Hare moved for adjournment, seconded by Mrs. Malone and unanimously carried.

Meeting Adjourned at 7:20 P.M.

UTILITY COMMITTEE

The Utility Committee met with Chairman Lambert presiding. Members present were Councilmen Hutchison and Tudor. Mr. Carey was absent.

NOTIFICATION OF ASSESSMENTS - SEWER MAINS

U.S. Route #113

In accordance with Section 18.7-2 of the Dover Code, the property owners of land adjacent to the proposed U.S. #113 Sewer Main have been notified of the proposed project and that their property will be assessed as a result of the construction. Members were provided with a map depicting the affected properties and a list of the property owners.

In 1992, staff contacted the property owners and, since they were in favor of the project, funding was included in the 1993 Water/Wastewater Revenue Bond Issue. The cost for the construction of the U.S. Route #113 Sewer Main is estimated at $70,000; therefore, staff has estimated the assessment charge to be $40.00 per front foot. Staff recommended authorization to proceed with the design and bidding of the U.S. Route #113 Sewer Main Project.

Mr. O'Connor assured members that the Public Works Department has been in contact with all property owners and that no one has relayed opposition. He advised members that notification was sent to the property owners advising them that this matter would be presented to the Utility Committee and that they could address members should they have any concerns.

Mr. Hutchison moved to recommend that staff be authorized to proceed with the design and bidding of the U.S. Route #113 Sewer Main Project. The motion was seconded by Mr. Tudor and unanimously carried.

Route #8 Sewer Main - Bennington Street to Independence Boulevard

In accordance with Section 18.7-2 of the Dover Code, the property owners of land adjacent to the proposed Route #8 Sewer Main were notified of the proposed project and that their property would be assessed as a result of the construction. Members were provided with a map depicting the affected properties and a list of the property owners. It was noted that the sewer main will be designed so that it can be extended to the property that is currently out of the City's limits, west of Dunkin' Donuts.

The cost for the construction of the Route #8 Sewer Main is estimated at $43,000; therefore, staff has estimated the assessment charge to be $40.00 per front foot. Staff recommended authorization to proceed with the design and bidding of the Route #8 Sewer Main Project.

Mr. O'Connor assured members that the Public Works Department has been in contact with all property owners and that no one has relayed opposition. He advised members that notification was sent to the property owners advising them that this matter would be presented to the Utility Committee and that they could address members should they have any concerns.

Mr. Hutchison moved to recommend that staff be authorized to proceed with the design and bidding of the Route #8 Sewer Main Project. The motion was seconded by Mr. Tudor and unanimously carried.

BID - PEAR STREET DITCH

Due to difficulties in maintaining the ditch behind the Del-Vets Club located on Pear Street, bids were solicited to enclose the ditch with pipe from the north side of the entrance of Fairview Elementary School to Walker Road. Members were provided with a map depicting the location of the work. Funding for this project was obtained in 1993 from the State Suburban Street Aid Fund. Staff recommended awarding the bid to the low bidder, R.A.M. Construction Company, in the amount of $65,921. The Engineer's estimate was $67,625.

Mr. Tudor moved to recommend acceptance of staff's recommendation, seconded by Mr. Hutchison and unanimously carried.

ACCEPTANCE OF DEDICATION OF RIGHTS-OF-WAY - ADAMS COURT

The developer of Adams Court has requested that the City accept the street for maintenance and ownership. The area to be considered includes the travelway, parking spaces, and the curbline. It was noted that Adams Court was originally developed as a privately maintained road. The owner recently constructed another set of townhouses at the end of the road and was required to reconstruct Adams Court to meet current City street design specifications. After construction was completed, staff inspected the improvements and found them to be satisfactory. A one-year maintenance agreement and bond and a release of liabilities have been submitted.

Mr. Tudor moved to recommend acceptance of the dedication of Adams Court, seconded by Mr. Hutchison and unanimously carried.

UNIT #3 GENERATOR RETAINING RINGS

General Electric, the manufacturer of the McKee Run Unit #3 generator, has advised the City of potential stress corrosion cracking of generator retaining rings. Stress corrosion cracking in the retaining rings can lead to ring failure and can result in significant damage to the turbine/generator. The current retaining ring material is a non-magnetic 18Mn-5Cr steel. General Electric has recommended replacement of the 18Mn-5Cr retaining rings with retaining rings of materials that are more resistant to stress corrosion cracking.

Mr. O'Connor explained that General Electric is currently supplying replacement generator retaining rings made of an 18Mn-18Cr steel that is much more resistant to stress corrosion cracking than the currently installed 18Mn-5Cr steel retaining rings. Due to the fact that there have been a number of retaining ring failures at other locations, it is felt that it would be prudent to replace the existing generator retaining rings with the 18Mn-18Cr steel rings during the Fall 1994 turbine/generator overhaul. Since there is an approximate 20 week lead time to procure replacement retaining rings, staff recommended that the procurement process be initiated at this time and that a purchase order, in the amount of $267,524, be issued to General Electric.

Agreeing with Mr. Lambert, Mr. O'Connor stated that it is imperative that Unit #3 remain on-line as much as possible since it is the unit that the City relies on the most.

Mr. Tudor stated that he is in opposition of the request since there has been no evidence that the rings need to be replaced. Prior to his approval, Mr. Tudor requested that staff determine where other power plants similar to the City of Dover have had trouble with their existing rings and how many have placed orders to replace the rings. He explained that in the past, the City has simply taken the advice of General Electric and he felt that the City should obtain additional information before accepting their recommendations without analyzing the situation.

Mr. O'Connor assured members that those concerns of Mr. Tudor will be investigated and that he would obtain, from General Electric, a reason why they are recommending the purchase of the rings during the Fall 1994 overhaul of Unit #3.

Mr. Hutchison moved to defer action on the replacement of Unit #3 generator retaining rings until their meeting of February 15, 1994, to allow staff to clarify questions of the committee. The motion was seconded by Mr. Tudor and unanimously carried.

Mr. Hutchison moved for adjournment, seconded by Mr. Tudor and unanimously carried.

Meeting Adjourned at 7:45 P.M.

                                                                                    Respectfully submitted,

                                                                                    Robin R. Christiansen

                                                                                    Council President

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