COUNCIL COMMITTEES
The Council Committees Meeting was held on June 29, 1993, 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. Hutchison, Mr. Salters, and Mr. Hare.
AGENDA ADDITIONS/DELETIONS
Mr. Leary moved to accept the agenda as submitted, seconded by Mr. Hare and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Salters presiding. Members present were Councilmen Hare and Leary. Mr. Hindman was absent.
WATER/WASTEWATER BOND ISSUE - SERIES 1993
In 1986, the City issued bonds for well field development on the east side of Dover. This issue was for $4,650,000 and included the well field project, related water lines, Puncheon Run sewer lines and Walker Road sewer lines. Due to inflation and the addition of the water treatment plant to the project, the well field project costs have risen. In order to secure funds for this and other projects, the concept of a bond issue has been considered, as follows:
ESTIMATED
BOND ISSUE PROJECTS COSTS
Well Field Development $4,530,000
Less: Funds available from 1986 Bond Fund (1,300,000)
North Loop Water Main 715,000
U.S. 13 Water Main 31,000
U.S. 13 Sewer Main 42,000
Meter Change-Out Program 325,000
U.S. 113 Sewer Main 63,000
Spruance Road Water Main 14,000
Spruance Road Sewer Main 10,000
Westover Sewer - City Portion 108,000
TOTAL $4,538,000
BOND ISSUE EXPENSES
Project Costs $4,538,000
Bond Discount/Expenses 150,000
Interest Earnings on Construction Fund (182,000)
City's Equity Contribution (250,000)
TOTAL $4,256,000
Mr. Mike Karia, Finance Director, advised members that the water/sewer budget for fiscal year 1992/93 and the rate increase effective 7/1/92 included the debt service, in the amount of $635,000, for this project. The bonds were not issued since the funds were not needed during 1992/93. The amount of $635,000 has been used by the utility to meet the deficit created by the declining revenues. Mr. Karia explained that a provision of $452,000 for fiscal year 1993/94 has been made for the debt service, of which $200,000 will be used for debt service payments and $250,000 will be used as the City's equity contribution towards the project.
Staff has requested that Bond Counsel, Financial Advisors and the Consulting Engineers send their fees by July 10, 1993, which will be compared to the industry standards. Staff recommended approval of the bond issue concept and that the Finance Department be authorized to proceed with the necessary actions.
Mr. Leary moved to recommend approval of staff's recommendation, seconded by Mr. Hare and unanimously carried.
REQUESTS FOR GRANTS - DOWNTOWN DEVELOPMENT FUNDS
For the past several years, the City has budgeted $65,000 for downtown development grants. Staff presented members with a list of the organizations, the funds that they have requested for 1993/94 and the amount they received in 1992/93, as follows:
1993/94 1992/93
Request Funding
Central Dover Business Association
(Main Street Dover, Inc.) $30,000 $20,000
Kent County Tourism 5,000 5,000
Dover Parking Authority 40,000 40,000
TOTAL $75,000 $65,000
Although staff recommended that the City distribute $65,000 among the three agencies that have requested funding, Acting City Manager, Ms. Swain, explained that the amounts to be distributed should be specified by Council.
Mr. Hare moved to recommend that the City maintain the same distribution of funds to the agencies as fiscal year 1992/93, seconded by Mr. Salters.
Responding to Mr. Leary, Ms. Nanette Hagen, Main Street Manager, provided members with a proposal for funding the Main Street Program. She indicated that a monthly newsletter is being published, which provides information regarding the projects that are being accomplished, and is available at the Dover Newsstand.
On a call for the question by Mr. Salters, the motion was unanimously carried authorizing the distribution of downtown development funds, as follows: 1) $20,000 to the Central Dover Business Association; 2) $5,000 to Kent County Tourism; and 3) $40,000 to the Dover Parking Authority.
PROPOSED ORDINANCE AMENDMENTS - ARTICLE IX - GENERAL EMPLOYEE PENSION PLAN
During their meeting of June 15, 1993, members considered proposed ordinance amendments to Article IX, General Employee Pension Plan, of the Dover Code and deferred action to allow staff to investigate the City's requirement to follow ERISA guidelines governing vesting periods.
Mr. Andrews, Human Resources Director, advised members that an opinion from the City's Managing Consultants, A. Foster Higgins, indicated that there are certain sections of ERISA that do not apply to municipalities. In accordance with Section 4.11 of the ERISA Code, which provides minimum vesting requirements, the City is not obligated to comply with five year cliff vesting or seven year graduated vesting.
Mr. Hare moved to recommend approval of the proposed ordinance amendments to Article IX of the Dover Code, stipulating that the vesting period remain at ten (10) years (Attachment #1). The motion was seconded by Mr. Leary and unanimously carried.
Mr. Salters moved for adjournment, seconded by Mr. Leary and unanimously carried.
Meeting Adjourned at 7:34 P.M.
SAFETY ADVISORY COMMITTEE
The Safety Advisory Committee met with Chairman Hare presiding. Members present were Councilman Pitts, Councilwoman Malone, and Mr. Coleman.
PRESENTATION - DELDOT - CONCERNS OF PROPERTY OWNERS - ROUTE #113 AT S.R. #1
Several business owners located in the Betsy Ross Plaza, Route #113, submitted a letter requesting the City's assistance for relief from the construction of the S.R. #1. The acceleration and deceleration ramps to the S.R. #1 from Route #113 have permanently blocked the businesses' front access and new entrances have been created on the side or behind their establishments.
Mr. Ray Harbeson, Chief Engineer for the State of Delaware, Department of Transportation, explained that the business owners had requested that DelDOT reconstruct a right turn access into the Betsy Ross Plaza from Route #113. In reviewing the request, it was determined that the design of the acceleration and deceleration ramps meet the minimal length necessary to maintain safe traffic flow. Since the design is already at minimal standards there was no opportunity for the length to be reduced to allow a right turn ingress. Mr. Harbeson advised members that the owners of the properties affected have been compensated for the partial right-of-way acquisition and the loss of the Route #113 entrance as a result of the S.R. #1 project. It was DelDOT's feeling that the compensation that has been paid to the property owners is sufficient to cover any long term impacts to the property. He noted that DelDOT provided temporary signing to assist patrons in utilizing the new entrance from Lafferty Lane.
Feeling that the patrons of the businesses located in the Betsy Ross Plaza are local, Mr. Harbeson stated that once the construction in this area has been completed, these businesses will return to normal. In an attempt to expedite the construction in this area, DelDOT has offered an incentive bonus to the contractor for early completion of the project. Construction should be completed by late summer or early fall. He advised members that DelDOT has also requested the businesses to provide details of the financial impacts the construction has had on their business. As of today, MAACO is the only business that has submitted documentation of loss of business compared to last year. Mr. Harbeson assured members that this project was never intended to cause undue hardship upon the business community of Dover. It was his feeling that the extensive planning and community involvement process, followed by the real estate process, indicates that DelDOT has made every attempt to listen and respond to the public's concerns.
City Planner, Mr. Tony DePrima, advised members that the business owners have contacted him concerning the possibility of obtaining sign variances. He relayed concern with granting variances of this nature and suggested that DelDOT erect signs on Route #113 similar to those found on the Delaware Turnpike, which indicate those businesses available off of that particular exit. A variance would not be required since DelDOT would be erecting the sign on their right-of-way.
Responding, Mr. Harbeson stated that DelDOT's policy on signage is governed by Mr. Ray Pusey, Chief of Traffic, and that any request should be submitted to the Secretary of Transportation. He advised members that it is not DelDOT's general practice and policy to erect advertising signs in the right-of-way for private establishments; however, general service signs have been erected. Although these signs would not indicate the name of the businesses, it would list the types of services that are available.
In response to Mr. Lambert, Mr. Harbeson advised members that any property owner that would be affected by the S.R. #1 was contacted by DelDOT through the real estate acquisition process; all workshops and public hearings were advertised. Anyone that has expressed interest at a workshop was placed on an extensive mailing list for quarterly newsletters and notification of additional meetings. He explained that DelDOT worked directly with the current property owners and it was the property owners' responsibility to inform future business owners.
Council President Christiansen requested that the City Planner do everything possible to assist the business owners in this matter.
Mr. DePrima suggested that he prepare a letter for submission to DelDOT indicating the City's concerns and provide alternatives for a possible solution to these concerns.
Mr. Hare moved to recommend approval of Mr. DePrima's suggestion and that staff submit an update within 30 days, seconded by Mrs. Malone and unanimously carried.
S.R. #1 - PROPOSAL FOR ROUTE #8 INTERCHANGE
Mr. James Clendaniel, Representing the Central Delaware Chamber of Commerce, requested that the City issue a Resolution in support of a Route #8 interchange. He advised members that the Kent County Levy Court, Kent County Tourism, and several local business owners along Route #13, have issued Resolutions in support of a Route #8 interchange. A Route #8 interchange could serve the City of Dover, downtown businesses, direct traffic east and west by means of Route #8 and Division Street, direct access to City, County, State and Federal buildings, as well as serve as an emergency entrance and exit. It was also felt that the interchange would reduce the amount of accidents that occur on Route #13 by relieving the traffic congestion between Dennys Road and the Route #13 and #113 split.
Mr. Clendaniel stated that the Central Delaware Chamber of Commerce's Route #13 Subcommittee and the Route #13 Business Coalition met with DelDOT to discuss the viability of accelerating the construction of the partial interchange at Route #8 with S.R. #1. After re-evaluating this matter, DelDOT concluded that until the development of Route #8 generates sufficient traffic to justify the addition of a partial interchange, they would not support the request for a partial interchange at Route #8. It was noted that the ramps would be constructed as a later phase should traffic conditions make it necessary.
Mr. Hutchison referred to the letter written to the Central Delaware Chamber of Commerce from Mr. Harbeson, DelDOT, dated June 14, 1993. In accordance with the 1987 Final Environmental Impact Study (FEIS), he noted that Route #8 was identified as the location for a partial interchange to be built as a later phase. Feeling that the interchange would eventually be constructed, Mr. Hutchison relayed his support of the request for a supporting Resolution.
Mr. Tudor expressed concern with a Route #8 interchange and suggested that the City honor DelDOT's current recommendation and wait until the affects of S.R. #1 are known.
Mr. Harbeson reminded members that when DelDOT was investigating interchange locations, it was suggested that access be provided north and south of Dover. At the request of the City of Dover for an additional interchange, DelDOT proposed a full access interchange at Route #88 (Leipsic Road) or a partial interchange at Route #8. Mr. Harbeson explained that a goal of the project was to avoid creating commercial activity areas adjacent to interchanges. The Route #13 businesses relayed concern that the new highway and its interchanges would create competing commercial areas and alter development patterns. He explained that the State and Federal resource agencies had concern with the adverse impact on cultural and environmental resources especially in the Route #8 interchange area where agricultural, archeological and wetland resources are extensive. Therefore, the City of Dover, Dover Planning Commission, the State and Federal resource agencies, and Route #13 businesses all established positions supporting the preservation of the existing commercial districts. As a result, a Route #8 partial interchange was included in the Publication of the FEIS to be designed and constructed in a later phase should traffic conditions make it necessary.
Responding to Mr. Salters, Mr. Harbeson stated that it could take approximately two (2) years to make any changes to the project at this time. He explained that the entire environmental process would be necessary as well as public hearings on the matter should changes be made.
Noting that interchanges create commercialization, Mr. Richard Ornauer, 17 Mifflin Road, relayed concern regarding the impact the interchange would have on the residential properties on East Route #8. It was his feeling that the interchange would eliminate the residential properties in the areas of East Route #8 and suggested that the results could be similar to the problems that have occurred on West Route #8.
Mr. Tudor moved to recommend denial of the request for a Resolution in support of a Route #8 interchange, at this time, without additional information. 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 8:25 P.M.
UTILITY COMMITTEE
The Utility Committee met with Chairman Lambert presiding. Members present were Councilmen Hutchison and Tudor and Mr. Carey.
QUARTERLY FUEL ADJUSTMENT REVIEW
The City reviews its fuel adjustment projections at least quarterly and modifies it in December on a levelized basis for the next calendar year. The current fuel adjustment is set at $0.01065 per KWH. The current cost of low sulfur oil is $16.55 a barrel. The fuel adjustment was based on a fuel cost of $20.25 a barrel for January through March and $21.75 a barrel for April through December.
In May 1993, the fuel fund balance was $2,901,771.77 compared to a projected balance of $1,686,227.19. Acting Electric Director, Mr. Richard Scrafford, stated that although the balance is larger than projected, there are still a number of uncertainties in the oil market which could result in large swings in the price of oil: 1) any effort under the President's economic plan to protect the domestic oil market could increase oil cost dramatically; 2) an effort by OPEC to cut production would affect fuel oil inventory as would an unusually hot summer; and 3) any large drop in fuel oil inventories could dramatically increase the price of oil. Staff recommended that the fuel adjustment remain at $0.01065 KWH.
Mr. Lambert advised members that although there is an excess in the fuel fund, the Finance Director indicated that there should be no change in the fuel adjustment at this time. He suggested that an adjustment should be considered in the winter when fuel prices tend to be more stable.
Mr. Tudor noted that the City's policy requires a minimum balance of $1,000,000 in the fuel fund. Since the City has budgeted an increase in electric rates effective July 1st and due to the economy, Mr. Tudor felt that the excess should be distributed to the customers at this time.
Mr. Hare suggested that a portion of the excess money be distributed to the consumers. It was his feeling that this would have less of an impact on our customers should we need to increase the fuel adjustment in the future. Mr. Scrafford stated that if Council provided an amount to reduce the fuel fund by, staff could determine the impact it would have for an average billing.
Responding to Council President Christiansen, Mr. Scrafford stated that $1,000,000 would provide each customer a reduction of approximately $4.00 for each 1,000 kwh billed, over a six month period.
After discussing the matter at length, Mr. Hutchison moved to recommend that the matter be tabled until the next committee meeting to allow the Finance Director to address this issue with members. The motion was seconded by Mr. Carey and carried with Mr. Tudor opposed.
PURCHASE OF LAND - MCKEE ROAD PUMPING STATION
In conjunction with the Mudstone Branch Sewer Project, it was necessary to determine the location of the major pumping station for the project. The pumping station is necessary to collect the sewage from the north and northwest sections of the City and pump it to the Kent County sewer system along U.S. #13. After preliminary investigations and discussions with property owners, three sites were chosen as possible alternatives. These sites were appraised to determine market value and were all between $18,000 and $20,000.
Mr. Dave Braun, Acting Public Works Director, advised members that discussions with the three property owners resulted in an agreement with Fox Hall Plantation Company for 0.620 acres of land, fronting on McKee Road immediately south of the Mudstone Branch, for the appraised amount of $19,800. Mr. Braun assured members that the Planning Commission has approved the subdivision of this parcel and the Conditional Use Site Plan. Staff recommended approval of the purchase of 0.620 acres of land from Fox Hall Plantation Company in the amount of $19,800.
Mr. Hutchison recommended approval of staff's recommendation, seconded by Mr. Carey and unanimously carried.
Mr. Lambert moved for adjournment, seconded by Mr. Tudor and unanimously carried.
Meeting Adjourned at 8:45 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
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