LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met on April 24. 1990. at 7:30 p.m.. with Chairman Weyandt presiding. Members present were Councilman Lynn and Mr. Townsend. Mr. Christiansen was absent. Other members of Council present were Mrs. Legates, Mr. Hall, Mr. Daisey, Mr. Levitt, Mr. VanSant and Mr. Salters.
AGENDA ADDITIONS/DELETIONS
Mr. Lynn moved to accept the agenda, seconded by Mr. Townsend and unanimously carried.
QUARTERLY UNCOLLECTIBLE REPORTS
Electric A list of Uncollectible Electric Bills for the third quarter of FY90 consisted of accounts which have shown no collection activity for a period of one year or longer. The list has been screened to insure that no one listed is currently in the utility customer base. The list included accounts that date from 1984 to 1986. These accounts were missed in previous write-off lists.
Responding to Mr. Weyandt, Mrs. Tieman said that all write-offs should be completed by next quarter.
Mr. Weyandt stated that the billing should consist of both husband's and wife's name to avoid the possibility of electric being discontinued under one name and reinstated under the spouse's name.
Mr. Karia presented a report regarding the uncollectible accounts stating that the Electric Fund will have an estimated balance of $145,000 at the end of this fiscal year. Mr. Karia feels that $100,000 should be kept in the Reserve Account to cover any major write-offs and the remaining $45,000 should be used for next fiscal year's write-offs. New funds should not be provided in the 1990-91 budget for Bad Debt Reserve.
Responding to questions regarding the write-off of $1,158.22 for "The Ice Cream Parlor", Mrs. Tieman stated that this is a corporation which has declared bankruptcy; therefore, it is not possible to collect as a personal liability form was not filed at the time the business was opened. Mrs. Tieman stated that she has also contacted Mr. Rodriguez for his position, which confirmed that the City could not collect.
Mr. Karia stated that the current policy requires personal liability and two month's deposit for this type of business within the City of Dover.
Responding to Mr. Townsend, Mrs. Tieman stated that there is no uncollectible account older than 1987. Mr. Townsend requested that staff present a list of uncollectible accounts for 1987, 1988 and 1989 for budget purposes.
Mr. Lynn moved to recommend that Council endorse the write-off of Uncollectible Electric Bills in the amount of $9,953.12. The motion was seconded by Mr. Townsend and unanimously carried.
Ambulance A list of Uncollectible Ambulance Bills for the third quarter of FY90 consisted of accounts which have shown no collection activity for a period of one year or longer. The list of write-offs are due to accepting assignment for Medicaid patients. The City has entered into a contract with the State which reads that
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if the City accepts the assignment, the City cannot make any effort to collect additional amounts from those Medicaid participants. Feeling that the problem has to do with Ambulance service rates, Mr. Levitt commented that it has been determined that those on medicaid have little or no additional resources. Mr. Levitt feels that the State should be contacted to research their rate allowances.
Mr. Weyandt requested! staff include the total year to date write-off's on the fourth quarter uncollectible Ambulance Bills.
Mr. Lynn moved to recommend that Council endorse the write-off of Uncollectible Ambulance Bills in the amount of $4,514.75. The motion was seconded by Mr. Townsend and unanimously carried.
REVIEW OF SANITATION DEPARTMENT BUDGET AND PUBLIC WORKS ADMINISTRATION BUDGET
Sanitation Department Budget
In response to Council's request, information regarding vehicle repair & maintenance costs for the Sanitation Department was provided for the period of July 1, 1989 to March 15, 1990.
Mr. Weyandt stated that a meeting should be held between the manufacturers, and maintenance employees to determine the maintenance causes and responsibility. Mr. Weyandt stated that he recently inspected a sanitation vehicle and found poor maintenance and manufacturing.
Mr. VanSant stated that the operator must maintain upkeep on the vehicles in order to maintain low repair expenses, stating that the very first level of maintenance is the responsibility of the operator.
Mr. Lynn moved to recommend that staff be permitted to schedule a meeting with the manufacturer and maintenance shop staff. The motion was seconded by Mr. Townsend and unanimously carried.
Public Works Administration Budget
Ms. Swain explained that as of February 28, 1990, the Public Works Administration Budget has an expense rate of 71% versus a projected rate of 67%.
There are two areas in the budget that contribute to the difference. The first results from comparing capitol purchases paid for at the time of purchase with the straight line projection used in the budget report. The second is caused by line items in the budget for printing and duplicating that were significantly under budgeted. Both items will exceed the annual budget but the overages will be covered with funds available in the division. Changes in these line items will be shown in the fiscal year 1990-91 budget.
The Committee took no action.
APPROVAL OF CONTRACT - UNIVERSITY OF DELAWARE
As requested by the City, staff from the University of Delaware developed a proposal for a personnel study for the City of Dover. The study will include all positions with the exception of all police positions.
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The project team will include four staff members from the University of Delaware and will begin June 1, 1990 for completion by November 16, 1990, at a cost of $10,200.
Mr. Weyandt expressed his concern of the cost, stating that the original proposal was $9,750. Responding, Ms. Swain explained that the cost increase is due to the delay in response.
Mr. Lynn moved to recommend that Council permit the University of Delaware to perform a pay study for the City of Dover, excluding Police, for an amount not to exceed $10,200, seconded by Mr. Weyandt and carried with Mr. Townsend not voting.
CLOSING OF 1988 BOND FUND - INFORMATIONAL REPORT - FINANCE DIRECTOR
In April 1988, the City issued General Obligation Bonds in the amount of $2,000,000 for the street program. In 1988, a total of 29 streets were completed which included related curb work. In 1989, a total of 40 streets were completed which included related curb work.
Mr. Karia explained that the bond issue projects are completed and all the funds are expended. Mr. Karia stated that since there is no balance available, the Finance Department has closed the Fund.
The Committee took no action.
CAPITAL IMPROVEMENTS PLAN - GENERAL GOVERNMENT SECTION
The Legislative and Finance Committee reviewed pages 12 - 27 of the General Government section of the 1990 - 1995 Capital Improvement Plan. Mr. Weyandt stated that more detailed information will be required on the out year items before budgetary approval.
Page 12 - Upgrade data processing computer system from System/3X to AS/400 - Total Cost - $325,000 (1990-91 = $175,000; 1991-92 $75,000; 1992-93 = $75,000
Ms. Swain stated the AS/400 could serve as a host system in an enterprisewide network that helps provide users everywhere with the information they need, in the format they want, when they want it. This system can give the City of Dover a "total package information system", which would link all PC's to a central system for effective resource utilization. Mr. Townsend suggested that staff choose the desired software prior to the purchase of hardware.
Pages 13 - 15
No changes were made to the following 1990 - 91 proposed projects:
Page 13 - Vestibule on front Entrance of City Hall - $17,000
Page 14 - Replacement of Brick Sidewalk - Dover Public Library $12,700
Page 15 - Replacement of Heat and Air Condition Unit on Warehouse Roof - $30,000
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Page 16 - Replacement of Software/Hardware Configuration - Tax Assessor - 1990/91 - Total Cost - $13,508
The current software/hardware is extremely outdated and slow; in-house revaluations are becoming increasingly difficult as the number of taxable parcels increase. Committee suggested staff contact Mr. Campbell to research the possibility of compatible units.
Page 17 - Theft Detection System - Dover Public Library - 1990/91 - Total Cost - $15,000
This system is to target books and other items in the Library's collection so that an alarm will sound if a patron attempts to remove the item without checking it out properly. Mr. Wetherall stated that approximately 1400 books a year are removed improperly from the library in which the City loses approximately $22,400 annually.
Page 18 - Landscaping - Route 8 - Community Services/Grounds - 1990/91 Total Cost - $6,000
Ms. Swain explained the need for trees on the Route #8 right-of-way from Salisbury Road west to city limits boundary. Mr. Townsend suggested that the Mayor contact Civic Associations and businesses to ask for donations of trees and flowers.
Page 19 - Automated Circulation System - Dover Public Library - 1991/92 = $23,000; 1992/93 = $13,000 - Total Cost $36,000
A fully-automated circulation system will enable the Library to more accurately track book circulation with a savings of staff time.
Mr. Weyandt suggested that staff research the system to allow Council's full understanding.
Page 20 - Material Storage Building - Public Works - 1991/92 - Total Cost - $65,000
A material storage building is necessary to allow protection of salt, sand, select, backfill and quarry waste from weather. This project would make the handling and use of the materials much easier. Mr. Scrafford stated that the Department is looking at a proposed area at the Electric Department which would make the building accessible from College Road and Walker Road.
Mr. Weyandt suggested staff research possible areas for placement.
Page 21 - Irrigation System - City Hall - 1991/92 - Total Cost - $19,500 Installation of irrigation systems on all five (5) islands on The Plaza in front of City Hall, between South State Street and Legislative Avenue, are planned.
No changes were made to this proposed project.
Page 22 - Building for Vehicle Washing - 1991/92 - Total Cost - $45,000 Vehicles are presently washed outside within a three-sided, chain-link fence area. It is felt that if the area were enclosed and covered with a roof, vehicle washing could take place 52 weeks of the year rather than have vehicle washing dependent on favorable weather conditions.
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Due to the necessity of this building, Committee members requested that this project be considered during Fiscal Year 1990-91.
Page 23 - 24
No changes were made to the following 1991-92 proposed projects:
Page 23 - Completion of Basement Area - Dover Public Library $89,260
Page 24 - Pave the Unpaved Portion of the Warehouse Yard - $15,500 Page 25 - Cash Register Distribution System - $32,000
Ms. Swain explained that this system is needed to effectively control and manage the City of Dover cash receipts. A customer would receive a payment history at the time of payment.
Mr. Weyandt suggested that this item be included in Fiscal Year 1990-91 with Computer purchases.
Page 26 - Landscape the Large Island Located at the Junction of West Division Street and West Loockerman Street - $5,000
No changes were made to this 1992-93 proposed project.
Page 27 - 29
Mr. Weyandt stated that Pages 27 - 29 must be considered in the Bond Issue and suggested that it be considered during 1991-92.
Page 27 - Building Addition - Dover Police Station - $547,068 Page 28 - City Hall Expansion - $1,027,500
Page 29 - Expansion of City Warehouse and Relocating Maintenance Shop - $186,000
Responding to Mr. Townsend, Ms. Swain stated that most items in the General Government Category are new.
Mr. VanSant suggested that for future reference, CIP items should show whether the project has been considered previously or if the project is new.
Respectfully submitted,
Francis R. Weyandt Chairman
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