LEGISLATIVE AND FINANCE COMMITTEE

The Legislative and Finance Committee met on July 24, 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. VanSant, Mr. Daisey, Mr. Pitts, and Mr. Salters.

AGENDA ADDITIONS/DELETIONS

Mr. Weyandt referred to a letter received from Dover Little League and requested that agenda item #4 be deferred until the August Committee Meeting.

Mr. Lynn moved to accept the agenda as amended, seconded by Mr. Leary and unanimously carried.

DELAWARE STATE EDUCATION ASSOCIATION REQUEST TO PURCHASE LAND

The committee considered a request from the Delaware State Education Association (DSEA) to purchase City of Dover property, located on the south side of East Water Street, to construct a 9,000 square foot building.

Mr. Weyandt advised members that the City purchased the property for protection, since it includes the access road to the City's dispatch center and greenhouse. He stated that there was an existing building on the lot, which is leased to the Delaware League of Local Governments for a nominal fee and the requirement of upkeep on the building. Mr. Weyandt suggested that the City lease the property to DSEA on a yearly basis, with the contingency that should the City need the property, DSEA would relinquish the site.

Mr. Worley stated that due to traffic congestion in that area, the City has been gradually relocating and that it is intended to abandon the area completely. He also stated that the proposal would not interfere with any existing electric, water or sewer facilities.

Mr. VanSant advised members that the League has no objections to the request and suggested that the City lease the property to the DSEA at a cost of $1 per year. Since Council is a political body, subject to change by elections every year, he felt that the City should grant DSEA a five or ten year lease rather than renewing the lease on a yearly basis. It was Mr. VanSant's opinion that the lease should include an exclusionary clause that would not allow the lease to be transferred. Regarding Mr. Weyandt's concerns of a current survey of the property, Mr. VanSant suggested that the DSEA be required to provide a clean survey of the properties involved to City Council.

Mr. Ronald Pierce, Executive Director of DSEA, addressed members of the committee and displayed a sketch of the proposed building. He stated that the Code requires thirty parking spaces for the proposed building. He explained that for architectural reasons, it is DSEA's desire to have the driveway and parking behind the building. Mr. Pierce stated that although he believes the DSEA would agree to leasing the property, a five or ten year lease would be desired.

Mr. Weyandt recommended that DSEA's attorney and City Solicitor Rodriguez draft a five to ten year lease.

Responding to previous questions of Mr. Weyandt, Mr. Cregar reported that the Planning Commission considered two options on the proposed site plan, as follows: 1) if the City decided to sell the property, it was recommended that the City obtain the appropriate cross access agreements so that DSEA could utilize the

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City's entrance roads; and 2) if the City decided not to sell, the City should maintain the cross access, and that if the City chooses to lease the property and does not want the entire site paved, the Planning Commission would waive the requirement for the five additional parking spaces on that portion of the proposed site plan.

Mr. Lynn moved to recommend that in lieu of selling the property, staff be authorized to meet with the DSEA's attorney and Solicitor Rodriguez to negotiate a ten year lease and that the DSEA he required to provide a verifying "meets and bounds" of the four properties involved to City Council through the Legislative and Finance Committee. The motion was seconded by Mr. Hall and unanimously carried.

OFFER TO PROVIDE BENCHES SIGNS BY SHARON

Ms. Sharon L. Groff, Signs by Sharon, requested permission to place benches in various locations throughout the City of Dover. These benches would be provided free of charge to the City. On the back side of the benches would be paid advertising of local businesses.

Mr. Worley reported that the Parks and Recreation Division has an informal policy to accept a cash donation of $100 from an individual, group, organization, or company, to construct a bench. This policy was established to standardize the style and quality of park benches placed in City parks. In return for the donation, the City will mount on the back section of the bench a small recognition plaque with the donators name and the date. Along with this policy, any bench for The Green must be approved by the Friends of Old Dover.

Since the request does not conform with the present bench policy, and is a form of general advertising/billboards which is prohibited under Chapter 3, Section 3-2, of the City Code, staff recommended that the request be denied.

Mr. Hall moved to recommend acceptance of staff's recommendation to deny the request of Signs by Sharon, seconded by Mr. Lynn and unanimously carried. MAINTENANCE AGREEMENT - DOVER PARKING AUTHORITY - WATER STREET LOT

The Dover Parking Authority has agreements with the City for routine maintenance of its lots in accordance with a Resolution passed by Council on June 13, 1988. Since completion of the Water Street parking lot, it is necessary to obtain a maintenance agreement.

In response to Mr. Weyandt's concerns of possible legal problems, Mr. Worley stated that the City would not be responsible for providing the Parking Authority legal counsel; however, the Parking Authority could contact our City Solicitor should they have a question.

Mr. VanSant explained that according to Title 22 of the Delaware Code, should a municipality choose to establish a Parking Authority, it would be autonomous and clearly specifies that any litigation the Authority may be involved in would not effect the municipality.

Responding to Mr. Hall, Mr. La Venia, Chairman of the Dover Parking Authority, stated that the Parking Authority is not billed for routine maintenance for the two City owned parking lots which they manage. Mr. Braun assured members; however, that the Parking Authority is billed for all work performed by the City on the three parking lots owned by the Parking Authority.

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Mr. Lynn moved to recommend acceptance of the Agreement, between the Dover Parking Authority and the City of Dover, to provide for maintenance of the Water Street Parking Lot (Attachment #1). The motion was seconded by Mr. Leary and unanimously carried.

SINGLE AUDIT REPORT

The Single Audit Act of 1984 requires an annual audit of the internal controls and compliance in relation to the Federal grants received by the City. Members of the committee received the City's Single Audit Report for the fiscal year 1988-89, as prepared by the auditors, Faw Casson & Company.

Mr. Karia, Finance Director, explained that although the Act requires the report to include Federal Grants only, State Grants have also been included to make the report more comprehensive. He stated that the main objective for the audit is to provide reports to various Federal Agencies assuring them that the City has adequate internal controls for expending the federal funds and has complied with the requirements of the grants. Mr. Karia stated that the report will be filed with the appropriate Federal and State agencies.

Faw Casson & Company have concluded that the internal controls of the City do not have any material weaknesses. Staff recommended that the report be accepted as submitted by Faw Casson & Company.

Mr. Lynn moved to recommend acceptance of the Single Audit Report for fiscal year 1988--89 for the City of Dover, seconded by Mr. Leary and unanimously carried. QUARTERLY UNCOLLECTIBLES REPORT

A list of uncollectible ambulance and electric bills for the first quarter of FY91 was submitted for the committee's review.

Ambulance Mrs. Tieman stated that the list of write-offs for ambulance bills are due to accepting assignment for Medicaid patients, Medicaid denials, and those that are deceased with no estate. She explained that the City of Dover entered into a contract with Medicaid which states that collection efforts for more than Medicaid reimbursement will not be made due to the financial situations of patients receiving Medicaid coverage. Mrs. Tieman also stated that since manual records were kept in the past years, staff is having difficulty researching old ambulance bills to be written off. She assured members that better controls are being established for collection efforts and that there has been an improvement in collections during the last year.

Noting that the same name appears on the list several times, Mr. Lynn relayed his concerns of citizens abusing the service. Mrs. Tieman stated that the city's paramedics can not refuse to transport an individual once the call is received.

Mr. Lynn moved to recommend that $12,867.93 in ambulance fees be written off, seconded by Mr. Hall and unanimously carried.

Electric Mrs. Tieman stated that the list of uncollectible electric bills consists of those accounts which have shown no collection activity for a period of one year or longer. She assured members that the list has been screened to insure that no one listed is currently in the City's utility customer base. Although the bills are written off, collection attempts are continued.

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Responding to Mr. Hall, Mrs. Tieman stated that those businesses that are on the list have declared bankruptcy. She explained that federal law prohibits the City from making attempts to collect these outstanding debts.

Mr. Worley noted that the uncollectible electric bills totalling $27,038.54, represent .22% (22/100 of one percent) of the total electric receivables and that other utility companies' uncollectibles average 3% (three percent). He stated that the City has an excellent collections rating.

Mr. Lynn noted that there are several names on the list that appear to be the same person although there may be a different spelling or a middle initial, etc. He questioned if the procedures for new service could be enhanced to avoid providing service to a customer if there is an outstanding bill in their name. Agreeing, Mr. VanSant suggested that the City utilize social security numbers when establishing service rather than names.

Mr. Hall moved to recommend that $27,038.54 in electric fees be written off, seconded by Mr. Lynn and unanimously carried.

ORDINANCE AMENDMENTS

Effect on Re-Employment

Mr. VanSant advised members that the Civilian Pension Board had concern that the wording of Section 2-193 of the City Code would prohibit a retired employee from serving on a Council Committee, Planning Commission, etc. without forfeiting his/her pension. In response to the Board's concerns, Mr. Rodriguez suggested that Section 2-193 be amended by adding the following exclusionary sentence:

"The provisions of this Section shall not apply to any employee who receives remuneration as a result of being elected or appointed to any elective or appointed office in the City of Dover."

The Civilian Pension Board recommended that the amendment be adopted.

Mr. Lynn moved to recommend approval of the amendment to Section 2-193 of the City Code (Attachment #2) and that the first reading of the Ordinance be presented to Council on August 13, 1990. The motion was seconded by Mr. Leary and unanimously carried.

Mandatory Participation in Pension Plan

In order to stabilize, protect and secure the civilian pension plan, the Civilian Pension Board recommended that the City Solicitor draft an ordinance that would make it mandatory for new employees to participate in the City's pension plan and that an employee could not withdraw from the plan unless they retire, leave the City's employ, or pass away.

Prior to the City amending the Plan, Mr. Rodriguez explained that the City must first present a Bill to be passed by the Legislature that would amend the Charter. The committee was provided with the following drafts:

1) An ordinance to be passed by Council to amend the Charter; 2) A Bill to be presented to the General Assembly to permit the amendment of the Charter

3) An ordinance to be passed by Council to amend the Dover Code and the Plan.

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Responding to Mr. Weyandt, Mr. VanSant explained that the amendment would only apply to those employees hired after its adoption.

Referring to the ordinance that would amend Section 2-179, Mr. Lynn requested that the portion which reads "thereafter unless their employ in the City of Dover is terminated, unless they retire, or unless they die", be changed to read "thereafter unless they leave the employment of the City of Dover, retire, or pass away". He also requested that where the word "may" appears in the ordinance to amend the Charter and the Bill, be replaced with the word "shall".

Mr. Worley explained that by utilizing the word "shall" in the proposed amendment to Section 2-179 of the Code, the plan is mandatory. He suggested that the City maintain the word "may" in the Charter, to allow the City flexibility in altering the plan in the future without requesting a change from the General Assembly. Mr. Leary moved to recommend approval of the Ordinance and Legislation amending Section 3 of the City of Dover Charter and Section 2-179 of the City Code, with the above recommended changes (Attachment #3, #4, and #5), and that the first reading of the Ordinances be presented to Council on August 13, 1990. The motion was seconded by Mr. Lynn and unanimously carried. (It is noted that the effective date of the ordinance amending Section 2-179 of the City Code will coincide with the date the General Assembly passes the Bill to amend Section 3 of the City Charter).

Mayor and Council President Compensation

Since the Mayor will no longer preside over regular and special Council meetings, and a salary for the Council President is not addressed in the City Code, the committee discussed the reimbursement of expenses for the Mayor and Council President.

Although the Mayor will no longer be presiding over regular and special Council meetings, he will be pursuing substantial administrative duties and functions. The committee requested that the City Solicitor prepare an ordinance that would change the reimbursement for expenses due the Mayor from $100 per meeting to $2,800 per year.

Feeling that the Council President should receive a higher reimbursement than Council members, since he presides over meetings, and a lower reimbursement than the Mayor, the committee suggested a $10 increase. The committee requested that the City Solicitor prepare an ordinance that would establish the reimbursement of expenses for the Council President at $90 per meeting.

Mr. Lynn referred to that portion of the proposed ordinance amending Section 2-70(1), which reads: ...and presiding over Council meetings and other meetings...". Since the Mayor no longer presides over Council Meetings, he suggested that the ordinance be amended to state: "...and presiding over the Annual Council and Quarterly Open Town Meetings the sum...".

Noting that the Mayor calls several meetings that are not directly associated with Council, Mr. VanSant felt that "and other meetings" should remain in the ordinance.

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Mr. Hall moved to recommend adoption of the proposed ordinance, with the suggested revisions (Attachment #6), and that the first reading of the Ordinance be presented to Council on August 13, 1990, seconded by Mr. Leary and unanimously carried.

Absence of Council President

It was brought to the committee's attention that the Charter does not address a position to fulfill the duties and responsibilities of the Council President during his absence. Members of the committee requested that the City Solicitor prepare a charter change that would provide for the senior member of Council to serve as the "President Acting" and that should there be two senior members of Council, a vote from Council shall determine the "President Acting".

The committee reviewed an ordinance that would amend Section 9 of the Charter, as submitted by Mr. Rodriguez.

Mr. Lynn noted that there could be instances when there would be more than two senior members of Council. He suggested that the portion of the ordinance the reads: ...and elect one of the two as council president acting", be amended to read: ...and elect one of those as council president acting".

Mr. Lynn moved to recommend adoption of the ordinance as amended (Attachment t7), and that the first reading of the Ordinance be presented to Council on August 13, 1990, seconded by Mr. Hall and unanimously carried.

Responding to Mr. Worley, Mr. VanSant stated that the appointment would he for a one year term and made at the Annual Meeting.

BID - NEW ROOF ON RECREATION BUILDING

In conjunction with the 1990-95 Capital Improvements Plan, it was proposed to replace the roof on the Recreation Center Building at the Dover Park. Two alternate roofing systems were bid, with the only major difference being that alternate #1 includes ballast stone, while alternate #2 is snapped in place. Roth alternates use the same membrane covering. The Engineer's estimate was $39,000. One contractor submitted bids, as follows:

Alternate #1 Alternate #2 Coastal Roofing Systems, Inc. $20,241 $21,974

During the bidding of this project, further investigation of the existing building has indicated that it may not be able to handle the additional load of the ballast stone. Therefore, staff recommended that alternate #2 he utilized for this contract.

Mr. Hall moved to recommend awarding the contract to Coastal Roofing for alternate #2, in the amount of $21,974, as recommended by staff. The motion was seconded by Mr. Lynn and unanimously carried.

CENTRAL AREA ZONING DISTRICT OVERLAY DISTRICT REVISION

Council considered a proposed zoning ordinance text amendment to create a new zoning district overlay, titled Central Area, that would allow ten story buildings in the C-2 and C-2A districts, Due to concerns from residents that the amendment would have an adverse impact on the Historic District area, City Council tabled their decision for further review.

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Mr. Cregar advised members that the Dover Downtown Development Corporation has reviewed that section of the amendment, as requested by Council. He stated that members of the Corporation felt that the areas north of North Street, zoned for commercial uses, were areas more susceptible to intensive development. They recommended that Section 27.3, item (b) be amended by adding the phrase "north of North Street". Members also felt that the review process that has been established for development projects within the City affords the City and its residents the protection needed to protect the integrity of the historic areas of the City. It was recommended by the Dover Downtown Development Corporation that Council adopt the zoning ordinance as amended.

Mr. Charles Johnson, of 419 S. State Street, reiterated his opposition to the amendment. He stated that although parking could be provided within a building, his concern is with the traffic that would be generated by a 10 story building. Mr. Johnson advised members that he is not against 10 story buildings, but is concerned with permitting 10 story buildings in or adjacent to an established area. He cautioned members in approving the amendment, feeling that once it is approved, the consequences could not be stopped.

Mr. Tom Smith, 126 Hampton Drive, advised members that he owns the business "Delaware Made" located at 214 S. State Street. Since the ordinance could affect the victorian historic district that was established by the State of Delaware, Mr. Smith questioned if the City has contacted the State for their input. He advised members that downtown Dover, and Dover generally, is marketed through its architecture and history. He voiced his concern with the amendment affecting marketing and the efforts to increase tourism. He strongly suggested that the Delaware Office of Historic Preservation, Tourism Office of the State of Delaware, and the Kent County Tourism Corporation, be contacted for an opinion on the proposal. Mr. Smith stated that he strongly objects to the ordinance and feels that it is visually damaging to the entire area, counterproductive to tourism, and that the protection offered in the Dover historic district is an illusion.

Mr. Hall moved to recommend that the proposed zoning ordinance text amendment, to create a new zoning district overlay, be rejected. The motion failed for the lack of a second.

In an attempt to receive positive reaction, Mr. Lynn moved to table action to allow staff to contact the County, State, and other parties involved for an opinion. Mr. Weyandt requested that developers and other people effected by the ordinance also be contacted.

Since the concerns are with that portion of the ordinance that involves height restrictions, Mr. Cregar suggested that the City move forward with establishing the Central Area overlay by adopting the ordinance with the exception of that portion that involves height restrictions.

Mr. Lynn moved to recommend approval of the zoning ordinance text amendment by creating a new Section 27 under Article 3, titled Central Area, with the exception of Section 27.3(b), pertaining to the building heights (Attachment #8). The motion was seconded by Mr. Leary and unanimously carried. (The first reading of the proposed ordinance amendment was held on April 9, 1990, and a public hearing was held on May 14, 1990).

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Responding to Mr. Salters, Mr. Weyandt stated that Section 27.3(b) has been rejected and that staff will contact the County, State, developers, businessmen, etc. for a report back to the committee.

MUNICIPAL ELECTIONS Polling Locations

The City of Dover has had two elections since district voting was initiated. Discussion has evolved around the need for district polling places. Council made a decision to make no changes until the voters had an opportunity to familiarize themselves with the many changes already taking place. To allow sufficient time to plan for the 1991 election, the City Clerk's Office is requesting Council's direction and presented members with the following options:

1) Continue with single polling place at Grace Fellowship Hall at Wesley Church. There have been complaints of inadequate parking, unsafe conditions for pedestrians, and insufficient room to hold City-wide elections. On the other hand, voters are used to this location since it has been utilized for several years.