LEGISLATIVE AND FINANCE COMMITTEE

The Legislative and Finance Committee met on August 28, 1990, at 7:00 p.m., with Chairman Weyandt presiding. Members present were Councilmen Hall and Lynn and Mr. Leary. Other members of Council present were Mr. Levitt, Mr. Daisey, Mr. VanSant, and Mr. Christiansen.

AGENDA ADDITIONS/DELETIONS

Mr. Worley requested an addition to the agenda, item #14, to discuss the State of Delaware Realty Transfer Tax.

Mr. Hall moved to approve the agenda as amended, seconded by Mr. Leary and unanimously carried.

COMMUNITY GRANT FUND

In view of past requests for "grants" from several local community organizations, Councilman VanSant requested that a Community Grant Fund be established, in the amount of $5,000 initially, to serve these needs. Mr. VanSant felt that this approach would provide a procedure to respond to such requests, with awards in an amount deemed appropriate by the Legislative and Finance Committee, and not necessarily in the full amount requested.

Mr. Worley stated that revenues for the fund would come from unexpected monies received during the year that have not been budgeted. Requests to the grant fund would be received on an application basis to be reviewed and awarded by City Council. Although staff realizes the difficulty Council confronts upon receiving monetary requests from local non-profit and charitable organizations, staff recommended that alternative approaches in accomplishing the same goal be researched.

Mr. Worley explained that there are requests that exceed amounts budgeted or are for dubious purposes. He advised members that there is the potential for a legal challenge if a funded request is not for a legitimate municipal purpose. Mr. Worley stated that some communities have established a community foundation which is a non-profit organization that solicits funds from the community and then through a review process, awards grants to community organizations based on an adopted philosophy. He stated that this would be a community savings account managed by the foundation.

Responding to Mr. Hall, Mr. Worley stated that the City could contribute monies to the foundation and set guidelines for its disbursement; however, the City would not be required to contribute funds. He stated that the foundation would he incorporated, with a board of directors consisting of volunteers. Mr. Worley stated that if there were extremely large amount of monies, then the foundation would be staffed.

If the City is interested in the community foundation, Mr. Worley suggested that staff be authorized to contact the Council of Foundations located in Washington, D.C., to address members of the committee for further explanation.

Mr. Leary moved to recommend that staff research all possibilities of establishing a community foundation, authorizing staff to contact the Council of Foundations for a presentation to the committee. The motion was seconded by Mr. Hall and unanimously carried.

2

Mr. Levitt stated that although he feels there is merit in establishing a community foundation, he is concerned with the difficulties involved, Feeling that sometimes it is best to accept a more simple approach, he suggested that the committee also consider Councilman VanSant's recommendation.

REQUEST FOR FUNDS - THE SHEPHERD PLACE

The committee considered a letter from Mr. Dan Enterline, President of the Board of Directors for The Shepherd Place, Inc., requesting a donation in the amount of $5,000 from the City. Mr. Enterline explained that the donation is necessary to supplement funds of The Shepherd Place in their goal of providing shelter to those in need.

Mr. Hall stated that he feels that the City should support the service offered by the Shepherd Place and give some consideration to the request.

Responding to Mr. Christiansen, Mr. Worley stated that the City received a federal grant in the amount of $2.300 for the Ruth Dorsey Shelter.

It was Mr. Daisey's feeling that action should he delayed on the request until further action is taken on the concept of establishing a community foundation. Concurring with Mr. Daisey, Mr. Lynn stated that Council needs a basis for their decisions on requests for donations,

Mr. VanSant stated that, although the Shepherd Place is located out. of City limits, their services benefit City of Dover residents, and he would support a donation in the amount of $2,500.

Mr. Hall moved to recommend that the City provide a one time grant in the amount of $2,500 to the Shepherd Place. The motion failed due to the lack of a second.

Mr. Lynn moved to recommend that the Guidelines for Grant Seekers Report (as discussed in the previous item) be implemented as soon as possible, within the current fiscal year. The motion was seconded by Mr. Leary and unanimously carried.

Mr. Worley referred to previous Council action that denied the request for waiver from the City's wastewater impact fee for The Shepherd Place site. Although the request was denied, Council authorized staff to meet with The Shepherd Place Board of Directors to devise an acceptable payment plan. Mr. Worley advised members that the City and the Shepherd Place agreed to a payment plan of $100 per month beginning February 15, 1990. He reported that the only payment the City received was on April 26, 1990 in the amount of $100. In contacting Mr. Weyant of the Shepherd Place, staff was advised that he was to meet with the City Manager and a Council Committee to take care of this matter. It was Mr. Worley's feeling that the impact fee and the request for a donation are two separate issues. He requested Council's direction on this matter.

The committee instructed staff to re-negotiate a payment plan with The Shepherd Place for the City's wastewater impact fee.

DOVER LITTLE LEAGUE - REQUEST TO-LEASE LAND AT_SCHUTTE FARM

The committee considered a letter submitted by Mr. Dale Waite, President of the Dover Little League, requesting that the City lease approximately 22 acres from the Schutte Farm to build a new Dover Little League Complex.

3

Mr. Worley reminded members that the City purchased the 163 acre Schutte Farm to construct a combustion turbine facility and a park area for the west side of Dover. He stated that 56.8 acres of land has been designated for park area and is being purchased with funds from the Parkland Reserve Account and a $200,000 grant from the Delaware Land and Water Conservation Trust Fund.

Mr. Worley stated that staff is in the process of preparing a request for proposal to hire a Landscape Architect to complete a site analysis for the development of the Schutte Parkland. The site analysis is part of the Parks and Recreation Division CTP plan for this year. Staff's preliminary plan for this site is for an active park with a sports complex, play equipment, picnic facilities and a municipal swimming pool. To construct these facilities, the entire 56.8 acres of land would be needed. Staff recommended that the City keep the 56.8 acres of parkland for development of a citywide west side park, and that if land is available from the remaining acreage, the City could sell or lease 22 acres of land to Dover Little League, Inc.

Mr. Jerry Street, representing the Dover Little League, advised members that it will be necessary for the League to obtain additional land by Spring of 1991. He explained that, at this time, the League wanted to notify the City of their interest in the land and requested that the League he considered in the City's study of the site analysis.

Mr. Lynn moved to table action on the request of the Dover Litt]e League until staff presents additional data to the committee for consideration. The motion was seconded by Mr. Hall and unanimously carried.

REQUEST- TO CHANGE DOVER CODE/CHARTER TO PERMIT LEGAL NOTICES BY NEWS MEDIA

Mr. Jack Costello, Account Executive with WKEN Radio, submitted a letter requesting that the City Ordinances for public notices include all media, rather than only the print media.

Since the General Manager of WKEN was unable to attend the meeting, Mr. Costello requested that the committee delay action on the request. He also stated that this would allow WKEN to present sample recording of advertisements to the committee for review.

The City Clerk advised members that the legal notice requirements appear in many sections of the Dover Charter and Code, which currently requires "publication of said notice in a newspaper of general circulation within the City". Since public (legal) notices are required by several sections of the Dover Charter and Code, it was recommended that the committee refer the request to the City Solicitor for thorough review prior to any action.

Mr. Lynn moved to table action on the ordinance amendment and referred the request to the City Solicitor for review, seconded by Mr. Leary and unanimously carried. Representatives of WKEN will address the committee during their October Meeting to present sample advertisements.

DOVER PARKING AUTHORITY - ORDINANCE TO CHANGE NUMBER OF MEMBERS

The Newark Parking Authority submitted a letter to the Dover Parking Authority requesting their consent to an amendment to the Delaware Code that would allow Parking Authorities to have a membership of five (5) to seven (7) on their Board and allow non-resident business owners to he members of the Board. The Dover Parking Authority has no problem with the proposed amendment. It was noted that.

4

the present law reads that "three members of the Board shall constitute a quorum". Since the number of members could be increased, members of the Dover Parking Authority suggested an amendment that would allow a majority of the members to constitute a quorum. The Dover Parking Authority requested the that the committee and City Council consider and support the proposed amendments prior to sending their endorsement to the Newark Parking Authority.

Mr. Lynn voiced his concern that the amendment would allow all members of the Board to consist of business owners within the city that are non-residents.

Mr. Peter La Venia, Chairman of the Dover Parking Authority, stated that the Authority is not advocating the amendment. He stated that the Authority also had concerns with permitting an unlimited number of non-residents to serve on the Board.

It was Mr. VanSant's opinion that the request of the Newark Parking Authority is due to an internal problem and he feels that the City of Dover should not support the amendment.

Mr. Lynn moved to recommend that no action be taken on the amendment at this time, seconded by Mr. Hall and unanimously carried,

REQUIREMENT FORNON-SMOKING AREA IN PUBLIC RESTAURANTS COUNCILMAN DAISEY With the recent concerns of serious health problems caused by passive smoking, Councilman Daisey submitted a proposal for the City of Dover to require restaurants to provide no-smoking areas. It was Councilman Daisey's feeling that the City has an obligation to protect the citizens of Dover from the health hazards caused by passive smoking. Recognizing the rights of smokers as well as non-smokers, he suggested that a minimum of 70% of the indoor seating should be designated no-smoking since approximately 70% of the population are non-smokers. Mr. Daisey suggested that the provision could be incorporated as part of the licensing requirements.

Mr. James Gray, Chairman of Governmental Affairs for Delaware Restaurants, stated that there is concern with the legislative process for a requirement of a nonsmoking area in restaurants. He requested that his organization be included in the considerations of such legislation.

A representative from the tobacco institute requested that the City meet with organizations to discuss the issue prior to action. It was her opinion that designating 70% of a restaurant for non-smokers is excessive and would jeopardize business for the restaurants.

Mr. Leary questioned why the regulations would he targeted only toward restaurants, noting that there are other facilities that are utilized by the public.

Mr. Greg Kramedas advised members that there are no laws governing no-smoking areas. He stated that restaurant owners use common sense and consider nonsmokers by setting aside an area for their convenience. Mr. Kramedas explained that sometimes the laws create more problems than they solve. He felt that more could be accomplished if City officials meet with restaurant owners and discussed the matter.

5

Mr. Leary moved to table action pending further discussions, seconded by Mr. Hall and unanimously carried.

Responding to Mr. Worley, Mr. Weyandt suggested that Mr. Kramedas contact other restaurant owners and notify City staff to schedule a meeting with City officials.

PROPOSED CHANGE TO PERSONNEL POLICY - EDUCATIONAL ASSISTANCE

Section 26 of the Personnel Policy states that an employee is limited to taking one educational course at a time to be eligible for reimbursement. Those receiving reimbursement must complete at least one year of continuous employment or have the amount deducted from the final paycheck. Several employees are anxious to proceed with furtherance of their education at a faster rate and have requested that this provision be liberalized.

Staff recommended that employees be allowed a maximum of three courses to be taken at a time, and require two years' continuous employment after reimbursement or have the amount deducted from the final paycheck. Members of the committee were provided with the policy indicating the proposed revisions.

Responding to Mr. Leary, Mr. Worley stated that. all courses must be approved by the City for reimbursement.

Mr. Weyandt expressed his concern with the provision in Section 26 that permits an employee to attend school during work hours and receive pay and that upon completion of the course, could leave the City's employ and only be charged with the reimbursement of the tuition and books. It was his opinion that the employee should also be required to reimburse the City for the salary received while attending school.

Mr. Worley explained that in most cases, the courses that are taken by employees are not during work hours,

Mr. Leary moved to recommend approval of the proposed revisions to Section 26 of the Personnel Policy to include the suggested change for reimbursement of salary when a course is taken during City time, and that the revisions be incorporated prior to submission to City Council (Attachment 81). The motion was seconded by Mr. Hall and unanimously carried.

BID - VEHICLE WASH BUILDING

In conjunction with the Capital Improvements Plan, a new vehicle wash building has been approved in the 1990/91 fiscal year budget. The low bid was received from H & H Builders in the amount of $29,428. Staff's estimate was $45,000. Staff recommended that a purchase order be issued to H & H Builders for the construction of a vehicle wash building.

Mr. Weyandt requested that staff consider eliminating the electric door openers since they can cause maintenance problems during the winter months. Mr. Worley stated that staff has agreed to eliminate the electric door openers and will renegotiate this change with the low bidder.

Mr. Lynn moved to recommend that staff be authorized to issue a purchase order to H & H Builders for the construction of a vehicle wash building, with the amount of the electric door openers deducted from the low bid of $29,428. The motion was seconded by Mr. Leary and unanimously carried.

6

CITY HALL/POLICE DEPARTMENT/WAREHOUSE - RENOVATION SCHEDULE

During the review of the 1990-95 five year Capital Improvements Plan, the renovations and expansion of City Hall, Police Department and City Warehouse, were moved to fiscal year 1990-91.

The committee was presented with a tentative development schedule for the projects. Mr. Worley stated that the completion date is estimated for three years due to the complexity of the projects and the requirement of a bond referendum to authorize financing.

Mr. Worley noted that the initial component of the schedule is the completion of a space needs study. He explained that the study is critical to the success of any renovation or expansion for an organization that has such a diverse group of functions. Consultations have taken place with a firm that specializes in such studies, and an estimate of $20,000 has been received for the cost of the study which will include all three facilities.

Staff recommended approval of the tentative development schedule, and the authority to develop an RFP for a space needs study. Although there are no budgeted funds for the space needs study, Mr. Worley advised members that funds could be obtained from the Carry Forward Balance since it is higher than projected.

Mr. Lynn moved to recommend approval of the facilities development schedule for the renovations to City Hall, Police Department, and City Warehouse and authorize the expenditure of $20,000 for a space needs study, seconded by Mr. Hall and unanimously carried.

ROUTE #8/SAULSBURY ROAD - CORRIDOR STUDY

Council has authorized the City Planner to perform an in-house study of the Route #8 corridor to allow for a comprehensive review of the recommended land uses discussed in the 1986 Comprehensive Plan. Given the nature of the development of Route #8, including several requests for annexations and rezonings received recently, staff has discovered that the study is necessary sooner than it could be performed in-house.

Mr. Worley advised members that the City has the funds necessary to retain a contractor for the Route #8/Saulsbury Road Corridor Study.

Mr. Lynn moved to recommend that the Planning Department be authorized to bid for the Route #8/Saulsbury Road Corridor Study to be performed as soon as possible. The motion was seconded by Mr. Leary and unanimously carried.

NATIONAL MUNICIPAL POLICY

For informational purposes, the City Manager submitted a notice from The National League of Cities regarding any proposed amendments to the National Municipal Policy. Members were provided with the procedures for submitting policy proposals and resolutions for consideration at the National League of City's Congress of Cities in Houston, Texas, December 1-5, 1990,

The committee took no action.

7

SENIOR SURREY BUS ADVERTISEMENT

Mr. Worley advised members that in the past, revenues have been received from the sale of advertisements on the Senior Surrey buses. In an effort to re-establish advertising on the Surrey buses, staff has solicited proposals from advertising agencies. A local agency, On Target Public Relations, Ltd., was the only proposal received.

Mr. Worley explained that the Surrey has 12 advertising spaces available for lease. On Target Public Relations has projected $50 per month, per ad, and $40 per month, per ad for advertisers that have already been clients of the Surrey. Their fee for performing this service would be 50% of the generated revenues.

Staff recommended that the City enter into a contract with On Target Public Relations, Ltd., to sell advertisements on the Senior Surrey buses.

Mr. Lynn moved to recommend acceptance of staff's recommendation, seconded by Mr. Hall and unanimously carried. (Proposed Contract - Attachment #2).

STATE REALTY TRANSFER TAX

Mr. Worley advised members that the State of Delaware has amended their realty transfer tax (H.B. 729). He explained that the amendment could have affected the City's transfer tax and that the City Solicitor has been requested for an opinion.

Mr. Cregar explained that the amendment will require an individual who purchased vacant property, and was required to pay a transfer tax, to also pay transfer taxes once improvements are made on the property. He stated that it has been estimated that $2,000,000 of revenue was lost annually. Mr. Cregar stated that the Act would require all municipalities, prior to issuing a building permit or certificate of occupancy, to have a "declaration for building permit/certificate of occupancy" for the State of Delaware, completed by the homeowner.

Responding to Mr. Weyandt, Mr. Cregar stated that although it would be the municipality's responsibility for the necessary paper work to be completed for the State. there would be no compensation from the State. Mr. Cregar informed the committee that this Legislation requires a tremendous amount of additional work for the municipalities.