COUNCIL COMMITTEES
The Council Committees Meeting were held on January 14, 1992 at 7:00 p.m., with Council President Christiansen presiding. Members of Council present were Mr. Weyandt, Mr. Daisey, Mr. Levitt, Mr. Lynn, Mr. Salters, Mr. Pitts, Mr. Hare, and Mr. Lambert.
AGENDA ADDITIONS/DELETIONS
Mr. Weyandt requested the addition of an executive session to discuss legal and personnel matters. He requested that item #4 (1992/93 Budget Discussion) be deleted. Mr. Weyandt moved for approval of the agenda as amended, seconded by Mr. Levitt and unanimously carried.
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met with Chairman Weyandt presiding. Members present were Councilmen Lynn and Hare and Mr. Leary.
Comprehensive Annual Financial Report
The City's annual financial report for fiscal year 1990-91 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, 1991 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.
Responding to questions by members of the committee, Ms. Nesterak explained that a reportable condition involves matters coming to their attention relating to significant deficiencies in the design or operation of the internal control structure that, in their judgment, could adversely affect the entity's ability to record, process, summarize and report financial data consistent with the assertions of management in the general purpose financial statements.
One such reportable condition was the irreconcilable differences between actual inventory and inventory as recorded in the perpetual inventory system and as recorded in the general ledger system.
The second reportable condition is the City's need for periodic observation of fixed assets with comparison to records. Good internal controls dictate that fixed assets be compared to detail records on a regular basis.
Mr. Karia explained that the differences between actual inventory as recorded in the inventory system are the result of a flaw in the computer system and human error in recording the inventory codes. The computer system has shown discrepancies in computing certain numbers. This matter will be taken care of as soon as the new computer system is properly running since the information will be taken off the personal computer at the warehouse and installed on the City's new main frame computer. Human errors in keying stock numbers will be eliminated by the use of a bar code system which should be in place very soon. In the interim, the Finance Department will accomplish periodic random inventory audits. In addition, Faw Casson & Company will perform a 100% audit in February or March.
Regarding the periodic inventory of fixed assets, Mr. Karia explained that a listing of fixed assets are on our computer system but we have not had sufficient staff to physically inventory the fixed assets on a regular basis. The auditors have recommended a system to tag fixed assets for identification purposes and that a physical inventory of fixed assets be performed with observations reconciled to the schedules of fixed assets.
Ms. Nesterak reiterated that the report shows the City's financial controls and procedures to be in very good order and that the matters discussed above were reportable conditions only and are not considered to be material weaknesses.
Mr. Karia assured the committee that the Finance Department will begin a physical verification and internal control of fixed assets.
Mr. Lynn moved to recommend acceptance of the Comprehensive Annual Financial Report for fiscal year 1990-91. The motion was seconded by Mr. Leary and unanimously carried.
Review of Proposed Schedule - Election District Realignment
The City Clerk submitted a proposed schedule for review and adoption of a redistricting plan that will be in effect for the 1993 Municipal Election. This plan must be approved prior to May 1, 1992 since filing petitions for the 1993 election may be accepted anytime between May 1, 1992 and February 12, 1993.
In discussing the matter, committee members requested that Council public hearings be separate from their normal meetings so that ample time is afforded for public comment.
By motion of Mr. Hare, seconded by Mr. Lynn, the committee recommended approval of the following tentative schedule:
February 11, 1992
Legislative & Finance Committee - First Review of Proposed
Redistricting Plan
March 10, 1992
Legislative & Finance Committee - Second Review of Proposed
Redistricting Plan
March 25, 1992
Council - Public Hearing on Proposed Redistricting Plan
April 15, 1992
Council - Final Public Hearing on Proposed Redistricting Plan
Recording of Municipal Liens
During the last committee meeting, Mr. Weyandt requested that staff research the possibility of having municipal liens recorded with Kent County rather than only recording them in our Municipal Lien Docket. Our City Charter requires that liens be entered in a municipal lien docket. In addition to the Charter, there is another law that regulates City liens. This is 25 Delaware Code Section 2901 et seq. This section of the State code sets the order of priority for collection of all liens, including City liens. While researching this matter, Deputy Solicitor Pepper discovered that in October 1990 this Code section was revised so that it does not recognize liens for installation of sewer lines, water mains, sidewalks or curbs, and this has important consequences for the City. This amendment has also effected superiority of our liens over certain other types of liens. The City's long term payment arrangements for water/sewer assessments also makes the City vulnerable in the case of property foreclosure.
Deputy Solicitor Pepper recommended that the City seek legislative relief for this problem. He recommended that 25 Delaware Code Section 2901 et seq. be amended by adding additional charges to the seven already listed in the section to make it clear that special assessments for the installation of sewer lines, water mains, sidewalks and curbs will also enjoy super priority. This change would also permit the City to use the notice of lien procedure established in 25 Delaware Code Section 2901 et seq. This procedure would entitle the City to have the lien arising from the special assessment to be placed against all property owned by the chargeable in the county.
Mr. Lynn moved to recommend that the City pursue legislative relief as recommended by the Deputy Solicitor (Attachment #1). The motion was seconded by Mr. Hare and unanimously carried.
Mr. Weyandt requested that staff research the amount of total outstanding liens for the City. (It is noted that research revealed total outstanding liens in the amount of $167,336.77, broken down as follows: Water/Sewer - $96,421.91; Curbing - $849.02; Sidewalks - $49,387.38; Demolition - $15,563.47; Grass Cutting - $5,114.99)
Downtown Dover Development Corporation Lease
The City of Dover has indicated an interest in leasing a portion of the WSFS building, purchased by the Downtown Dover Development Corporation. The City currently wishes to lease the basement area, the first floor, and an area large enough to house the City Assessor. Responding to Mr. Christiansen's question on the need for the Assessor to move to the new site, Mr. Lucas explained that his office should be located in close proximity to Administrative Services to facilitate convenience to our taxpayers. When payments are made after July 31st, a monthly penalty is added to the amount due. This calculation is made by the Assessor's Office, with payment made to the Administrative Services Department.
The Assessor's Office may have to be temporarily located on the third floor, until the necessary available space on another floor is available. The basement would be leased for $10 per sq. ft. at an estimated 2,000 sq. ft.; the first floor would be leased for $12 per sq. ft. at an estimated 3,910 sq. ft.; and if the third floor is necessary for the Assessor, it would be leased at $10.75 per sq. ft. at an estimated 1,140 sq. ft. The total square foot measurements will be verified prior to finalization of the lease.
The vacated space in City Hall will facilitate expansion of the Inspections/Planning Department into the area now utilized by the cashiers. The new Human Resources Department will be located in the area now utilized by the electric services division of Administrative Services. The Tax Assessor's office will temporarily be utilized as a meeting room.
Mr. Leary moved to recommend that the City Manager be authorized to negotiate (up to the maximum amount stated above) and sign a lease to rent space in the WSFS building in the basement, first floor and a portion of the third floor if needed, effective January 1, 1992. The motion was seconded by Mr. Lynn and unanimously carried.
Community Development Block Grant Application
Funds are made available to the State of Delaware Development Office/Division of Housing and Community Development through a grant from the U.S. Department of Housing and Urban Development for Community Development Block Grants. As in the past, the available funds may be used for a number of eligible activities designed to induce community development and revitalization. The deadline for submitting a completed application is March 31, 1992.
Staff recommended that they be permitted to submit the required application and for approval of the FY92 Community Development Grant Block Application Schedule.
Mr. Hare moved to recommend that staff be authorized to submit the required application and for approval of the application schedule (Attachment #2). The motion was seconded by Mr. Lynn and unanimously carried.
Emergency Shelter Grant Application
The City of Dover received the announcement of the availability of $57,000 in Emergency Shelter Grant Program funds, made available by the U.S. Department of Housing & Urban Development. The deadline for submitting an application is February 28, 1992. A letter of intent has been received from the Whatcoat Social Services Agency, Inc. to apply for the Emergency Shelter Grant Program funds for the rehabilitation of the Ruth N. Dorsey Relief Shelter.
Mr. Knox advised the committee that he was just informed that a second shelter, which is located within the City limits, is eligible for the grant funds. Staff requested authorization to apply for the Emergency Shelter Grant, with recipient allocation to be determined at a later date.
Mr. Lynn moved to recommend that staff be authorized to apply for the Emergency Shelter Grant, seconded by Mr. Hare and unanimously carried.
City Manager's Monthly Report - November 1991
The committee reviewed various sections of the City Manager's Monthly Report for November 1991. Mr. Weyandt requested that on future reports, page 3.7 be changed by adding a line after the fund total to show the fund balance, less the $1,000,000 reserve balance.
No further action was taken.
Mr. Lynn moved for adjournment, seconded by Mr. Hare and unanimously carried.
UTILITY COMMITTEE
The Utility Committee met with Chairman Levitt presiding. Members present were Councilmen Salters and Daisey and Mr. Carey.
Acceptance of Streets and Utilities - Bay Tree Development
The developer of Bay Tree - Phase I has requested that the streets and utilities be accepted for maintenance and ownership by the City. Staff has inspected the improvements and provided the developer with a list of repairs to be made to meet City standards. That work has been completed. The one year Maintenance Bond, Maintenance Agreement and Release From Liabilities have all been submitted.
Mr. Salters moved to recommend acceptance of the dedication of Bay Tree Development - Phase I, seconded by Mr. Daisey and unanimously carried.
Request for Alley Abandonment - Forrest Street - Maurice Hartnett
The City of Dover Planning Commission recommended approval of a request to abandon a 15' wide undeveloped alley which accesses the southerly side of Route #8, approximately 210' east of Saulsbury Road. In making this recommendation, the Planning Commission considered that the abandonment would eliminate a public access point onto Route #8. Limiting the number and frequency of access points along the corridor is viewed as important in improving the corridor's utility. The alley does not appear to be in use along the portion proposed for abandonment, which is 92.5' in a southerly direction from Route #8. There are no utility lines or easements along the alley.
A petition was submitted from eight property owners objecting to the requested alley abandonment.
Mr. Salters voiced his strong objections to the alley abandonment, stating that the property owners in this area utilize the alley. He stated that the property owners do not want further commercial infringement on their residential property.
Mr. William Holden, Sr. was present to request that this request be denied. Mr. Holden stated that he has maintained the alley for the 32 years he has owned the adjoining property. Mr. Wallace Dixon, President of the Lincoln Park Civic Association, concurred with Mr. Holden's request.
Mr. Daisey stated that to his knowledge, the City has never abandoned an alley that is being utilized. In this case, he was told that the neighborhood has been trying for a number of years to improve the alley. If this portion of the alley is abandoned, the entire alley will be blocked from use by others.
Responding to questions by Mr. Salters, the City Clerk stated that a public hearing is required if Council wishes to abandon the alley.
Mr. Daisey moved to recommend denial of the alley abandonment request, seconded by Mr. Salters and carried with Mr. Levitt voting no.
Power Plant Emissions
Referring to recent news articles and concerns raised by Senator Still, an explanation was offered by Mr. Worley and Mr. French on Power Plant emissions. Mr. French stated that the City has been utilizing a lower sulfur content in the oil at McKee Run Power Plant. The Plant meets DNREC and EPA requirements, but there are times when emissions seem higher than others. Although the cause has not been determined, it is felt that this condition occurs more often in the fall when the system is not operating at a full load. The City is looking at possible solutions to the problem. One solution being considered is an extraction system where soot would be captured and reinjected with air into the boiler and reburned.
Mr. Worley stated that this is a very sensitive issue and assured Council that staff will do everything within reason to resolve any problems.
Summary of Units #1 and #2 Life Extension Expenditures
As requested by committee members, staff submitted a summary of Units #1 and #2 life extension expenditures. The RMI study determined that total expenditures up to $7.74 million for Units #1 and #2 could be justified for life extension by the year 2000. Expenditures up to this amount would be justified by the unit revenues. The life extension items recommended in the Ebasco study and those recommended by staff or required by equipment failure were listed for committee review. The Ebasco study identified life extension projects totaling $3.06 million. Mr. Worley stated that to date, only $1,283,000 has been spent. In addition, unanticipated major expenditures of $2.02 million have been identified this year by staff. This brings the anticipated total for the units to $5.08 million which is still well below the $7.74 million justified by the RMI study. The major expenditures include an estimate of $120,000 for ash reinjection (soot control).
Mr. Salters moved to recommend acceptance of the summary of Units #1 and #2 life extension expenditures. The motion was seconded by Mr. Daisey and unanimously carried.
Summary of 1991 Fall Power Plant New Projects
As requested by Council, staff submitted an informational report on additional expenditures, totaling $2,801,000, required for the McKee Run Power Plant which will require adjustment of the plant budget. Mr. Worley informed the committee that this information will be brought back for Council approval through budget amendments at a later date. No further action was taken.
Sanitation Containers Fund
The Public Works Department submitted a memorandum responding to questions of Council on the Sanitation Containers Replacement Fund. This fund was established in March 1988, with the funding plan for the proposal approved by Council on October 26, 1987. The balance in the Container Replacement Fund as of December 1, 1991 was $45,170.
Mr. Scrafford explained that because of problems with the Rand lifting arms resulting from the weight of a fully loaded 440 gallon container, the Department began switching to 330 gallon containers in 1989. As of January 1, 1992, all 440 gallon containers have been received from service, totaling 250 containers. The current container inventory and stock purchases are managed by Support Services.
Responding to Mr. Weyandt's question on what the City plans to do with the 440 gallon containers, staff advised that they would like Council's permission to sell the 250 (440 gallon) containers.
Mr. Carey moved to recommend that staff be authorized to sell the unused sanitation containers, seconded by Mr. Daisey and unanimously carried.
Bid - College Road Sewer Line
In conjunction with the 1991-96 Capital Improvements Plan, the construction of a sewer line extension on College Road of approximately 900 linear feet of 8" sewer main was proposed in College Road from Mishoe Street to Railroad Avenue. The engineer's estimate for the project was $119,000.
The low bid was received from Ray Savage, Inc. in the amount of $92,890.50. The property owners to be assessed as a result of this project have been notified by certified mail of the results of the bidding and invited to discuss the issue at the Utility Committee meeting. The assessment charge for the project will be the maximum allowed by ordinance of $40 per front foot. Chairman Levitt noted that there were no property owners present to address the matter.
Mr. Salters moved to recommend that the contract be awarded to Ray Savage, Inc. in the amount of $92,890.50, seconded by Mr. Daisey and unanimously carried.
Mr. Levitt moved for adjournment into executive session to discuss legal and personnel matters, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 9:15 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
RRC/DJB/jg
Attachments