REGULAR MEETING
The Regular Meeting of Council was held on August 25, 1980 at 7:30 p.m. with Mayor McDonough presiding. Members present were Messrs. Bewick, Weyandt, Boaman, Hardcastle, Carey, Witt, Carson and Richter.
In the absence of the Reverend J.H. Williams, the invocation was given by Councilman James C. Hardcastle.
AGENDA ADDITIONS AND DELETIONS
Mr. Hardcastle requested an additional agenda item to discuss School Crossing Guards.
Mr. Witt requested an additional agenda item to discuss the billings of Storer Communications.
Mayor McDonough requested an additional agenda item to discuss the October 13th Council meeting, which falls on a City holiday.
MINUTES
The Minutes of the Regular Council Meeting of August 11, 1980 were unanimously approved by motion of Mr. Hardcastle, seconded by Mr. Weyandt and bore the written approval of Mayor McDonough.
MONTHLY REPORTS
Chief of Police Report for the Month of July
The Chief of Police Report for the month of July was unanimously approved by motion of Mr. Weyandt, seconded by Mr. Boaman.
Building Inspector & Fire Marshal Report for the Month of July
The Building Inspector and Fire Marshal Report for the month of July was unanimously approved by motion of Mr. Witt, seconded by Mr. Carson.
City Alderman Report for the Month of July
The City Alderman Report for the month of July was unanimously approved by motion of Mr. Boaman, seconded by Mr. Carson.
General Operating Fund, Cash Receipts Report for the Month of July
The General Operating Fund, Cash Receipts Report for the month of July was unanimously approved by motion of Mr. Bewick, seconded by Mr. Boaman.
General Operating Fund, Budget Report for the Month of June
Because many of the various departments appear over their budgets as of June, Mr. Witt felt that acceptance of this report should be delayed until a variance report can be supplied to Council for review. It was Mr. Witt’s feeling that a variance report, (justification for any deviations from planned expenditures) for the last three months would be beneficial.
Mr. Bewick concurred with Mr. Witt’s suggestion and further requested that a monthly variance report be submitted in the future.
Since Mr. Richter has always thought that a budget was an authorization of expenditures, he could not understand how a budget could be overspent.
As the City budget contains no contingencies, Mr. Mogan has never considered it to be a deadline budget.
Mr. Witt moved that the City Manager submit a variance report for the last three months, prior to Council accepting the General Operating Fund Budget Report #12. The motion was seconded by Mr. Bewick and unanimously carried.
Water/Sewer Fund, Cash Receipts Report for the Month of July
The Water/Sewer Fund, Cash Receipts Report for the Month of July was unanimously carried by motion of Mr. Witt, seconded by Mr. Boaman.
Water/Sewer Fund, Budget Report for the Month of June
Mr. Witt mentioned that a deficit exists this year for approximately $465,000 in the Water/Sewer Fund Budget.
Mr. Bewick felt that the new rates, as proposed by the Utility Committee, would offset the deficit, depending on when the rates would go into effect.
The Water/Sewer Fund, Budget Report for the Month of June was unanimously approved by motion of Mr. Boaman, seconded by Mr. Witt.
PUBLIC HEARING - PROPOSED INCREASES IN WATER AND SEWER RATES
A public hearing was duly advertised for this time and place to consider adoption of proposed increases in water and sewer rates.
Mayor McDonough declared the hearing open.
There was no one present to speak for or against the proposed increase and no correspondence.
Mr. Robert Swavely was present to answer any questions of Council concerning a report submitted by Betz-Converse-Murdoch on proposed water and sewer rate increases.
Mr. Bewick reiterated the proposed water and sewer rates, as set in the Council Meeting of July 28, 1980, as follows:
Water Inside the City - 41¢
Water Outside the City - 61¢
Sewer Inside the City - 38¢ plus treatment charge presently 34¢,
totaling 72¢
Sewer Outside the City - $1.16
If the water and sewer rates are adopted as proposed, it was Mr. Bewick’s feeling that there will be no profit left in the water and sewer account and that the account should end up with a zero balance.
In response to a question by Mr. Boaman, Mr. Bewick stated that this method eliminates depreciation expense as an operating expense.
In explanation of the two different methods shown in the report to Council from Betz-Converse-Murdoch, Mr. Swavely explained that the first method shows total revenues, deducting the operating expenses for a figure equaling the utility operating income. It allows for a cost depreciation expense and the interest and principle on long term debts.
The second is one used by the Delaware Public Service Commission which does not permit the use of interest and principle on long term debts. Instead, they permit you to earn a return on investment.
These are two separate methods, with one using interest and principle as a factor of cost and the other using return on investment as an indicator.
Mr. Swavely concurred with Mr. Boaman that if the Water and Sewer Departments are going to pay for themselves through their fees, the City must recognize interest and principle on long term debts.
Since the rates, as proposed by Betz-Converse-Murdoch, would result in a rate of return, it was Mr. Bewick’s feeling that the rate of return (profit) was not necessary. Therefore, the Utility Committee eliminated the depreciation expense and the rate of return (profit) which would leave a zero balance.
Since replacement of vehicles, wells, etc. were not considered in our General Operating Budget, it was Mr. Boaman’s feeling that if this was not taken into consideration in the Water and Sewer Fund Account, it would end up with a deficit at the end of the fiscal year.
Mr. Mogan explained that repairs are taken into consideration in our General Operating Budget, but major expenses such as complete vehicle replacement, wells, mains, etc. are considered in Capital Expenditures. He stated that no monies have been appropriated in Capital Expenditures for major replacements for the Water and Sewer Departments for this year.
It was Mr. Bewick’s feeling that replacement of short life equipment should be considered in the General Operating Budget and he had assumed that this was the case with the City of Dover. Naturally, long life equipment should be considered along with Capital Expenditures, to be paid for by bond funds.
Mr. Mogan stated that it has been the policy of the City to consider replacements of vehicles, wells, etc. along with the Capital Expenditures, regardless of the expected life of the equipment. There were no vehicles appropriated in the Water/Sewer fund for this fiscal year nor for any major well failures or major main breaks.
In response to a question by Mr. Boaman, Mr. Mogan replied that should a major replacement become imperative, it would result in a deficit in that particular budget. This deficit would be rectified from another source of income within the City or from short term borrowing at the end of the year.
Mr. Boaman stated that somewhere in the budget, the City has to account for contingencies such as replacement of vehicles, wells, mains, etc. He felt that this should be paid for from within the Water and Sewer Departments from fees that are accumulated and should not be subsidized by property tax fees. Mr. Boaman felt that it is unfair to expect property owners’ taxes to subsidize non-taxable properties who would be receiving the water and sewer service for less than what it costs to produce it.
Mr. Bewick agreed that the Water and Sewer Department should be self-sustaining, including vehicle replacements, but he had assumed that normal replacement of vehicles was considered in the General Operating Budget. If it was not, then it was his opinion that the budget was made improperly as there is no factor of safety. He suggested that this be changed prior to next year’s budget.
Since it appears that there are some misunderstandings about how the budget is made up its effect on this rate increase, Mr. Boaman felt that action should be delayed to allow Council time to thoroughly investigate the matter.
Mr. Weyandt stated that replacement of vehicles should have been allocated for in the General Operating Budget.
Mr. Mogan reiterated that it was Council policy that set the budgeting of vehicles as a Capital item and not as a budget item. Every budget approved by Council has considered vehicles as a Capital item in the past.
Mayor McDonough declared the hearing closed.
Mr. Bewick moved to adopt the proposed water and sewer rates as proposed y the Utility Committee and Council (which is the lowest possible rates with no deficit), as follows, to become effective October 1, 1980.
Water Inside the City - 41¢
Water Outside the City - 61¢
Sewer Inside the City - 38¢ plus treatment charge presently 34¢,
totaling 72¢
Sewer Outside the City - $1.16
The motion was seconded by Mr. Richter and carried by a roll call vote of five (5) yes, three (3) no (Boaman, Witt and Carson).
Mr. Bewick requested that the record reflect that those voting no were in favor of a higher rate.
Mr. Witt requested that the record reflect that those voting no were in favor of a higher rate.
Mr. Weyandt moved that if the figures given to the Utility Committee were correct, then the Water and Sewer Department would have a balanced budget at the end of the year.
Mr. Mogan stated that it was Staff’s recommendation to adopt the rates as proposed by Betz-Converse-Murdoch.
MONTHLY REPORTS - Continued
Water/Sewer Fund, Budget Report for the Month of June
Mr. Weyandt moved that no action be taken on the Water/Sewer Fund, Budget Report for the month of June until such time as a detailed variance report has been submitted for Council review.
The motion was seconded by Mr. Witt and unanimously carried.
Intergovernmental Service Fund, Revenue & Expenditure Report - June
The Intergovernmental Service Fund, Revenue and Expenditure Report for the month of June was unanimously approved by motion of Mr. Witt, seconded by Mr. Boaman.
Electric Revenue Fund, Cash Receipts Report for the Month of July
The Electric Revenue Fund, Cash Receipts Report for the month of July was unanimously approved by motion of Mr. Witt, seconded by Mr. Carey.
Electric Revenue Fund, Budget Report for the Month of June
The Electric Revenue Fund, Budget Report for the month of June was unanimously approved by motion of Mr. Hardcastle, seconded by Mr. Boaman.
Electric Improvement & Extension Fund, Cash Receipts & Disbursements - July
The Electric Improvement and Extension Fund, Cash Receipts and Disbursements Report for the month of July was unanimously approved by motion of Mr. Witt, seconded by Mr. Carey.
Municipal Street Aid Fund, Cash Receipts & Disbursements Report - April, May & June
The Municipal Street Aid Fund, Cash Receipts and Disbursements Report for the months of April, May and June was unanimously approved by motion of Mr. Witt, seconded by Mr. Carey.
CITY MANAGER’S REPORT FOR THE MONTH OF JULY
In response to a question by Mr. Weyandt in reference to traffic signalization downtown, Mr. Mogan replied that he is presently studying the traffic flow charts.
Mr. Mogan informed Mr. Weyandt that the City has done minimal grading at the old Pierce Building site, now owned by the Dover Parking Authority. This grading was done strictly to assist in making the area safe but was kept to a minimum. Any additional grading would have to be done by the Dover Parking Authority.
Mr. Mogan informed Council that the Annual City Surplus Sale will be held on Saturday, September 27, 1980.
The City Manager’s Report for the month of July was unanimously approved by motion of Mr. Witt, seconded by Mr. Weyandt.
J.P. COURT #7 REPORT FOR THE MONTH OF JULY
A check was received from J.P. Court #7 for the month of July in the amount of $8,265.55.
The J.P. Court #7 Report for the month of July was unanimously approved by motion of Mr. Witt, seconded by Mr. Boaman.
UTILITY COMMITTEE REPORT
The Utility Committee met on August 18, 1980 with Chairman Bewick presiding.
Dr. N.P. Haritos - Electric Charge Rebate
The committee considered a request for an electric charge rebate for Dr. Haritos for his facility located at 1418 S. State Street. When an electrical contractor installed meter pans for two separate circuits at this address in 1977, the electrical circuits were indicated in reverse. The City of Dover relies on the electrician to properly mark each meter pan for installation of the meter. The City assumes no responsibility for circuits within the building.
When the error was discovered, the Finance Department issued a credit for the nine months occurring within the fiscal year, since it is City policy to adjust electric bills within the fiscal year, whether it be in favor of or detrimental to the City. Dr. Haritos is now requesting reimbursement for the entire period since 1977.
It was the recommendation of the committee that additional reimbursement be denied since it was not the City’s mistake, stipulating that Dr. Haritos and the landlord, Dr. Heinz, be informed that any further restitution would be responsibility of the landlord.
Mr. Bewick moved for the recommendation of the committee, seconded by Mr. Weyandt and unanimously carried.
Request for Water - Mrs. Harris - State College Road
Mr. Bewick requested that this item be brought up at a later time during the meeting to allow Council an opportunity to meet in a short workshop session.
The Utility Committee Report was accepted as submitted, by motion of Mr. Weyandt, seconded by Mr. Boaman and unanimously carried.
REZONING REQUEST - 1011 S. GOVERNORS AVENUE (LOTS #23 & #24) - HARRY & JOYCE WARRINGTON
A request was received to rezone property located on lots #23 & #24, 1011 S. Governors Avenue, owned by Harry E. & Joyce A. Warrington. Prior to amending the zoning map and zoning ordinance of the City of Dover, a public hearing is required.
By motion of Mr. Witt, seconded by Mr. Boaman, Council unanimously adopted the following resolution and referred the request to the Planning Commission.
A RESOLUTION SETTING FORTH TIME AND PLACE OF PUBLIC HEARING ON A PROPOSED AMENDMENT TO THE ZONING MAP FOR THE CITY OF DOVER AND DIRECTING THAT NOTICE OF SAID HEARING BE PUBLISHED IN ACCORDANCE WITH THE PROVISIONS OF THE DELAWARE CODE.
WHEREAS, certain lands located at 1011 S. Governors Avenue (lots #23 & #24) are presently zoned for R-20 use, and
WHEREAS, it is necessary to hold a public hearing prior to amending the zoning map and zoning ordinance of the City of Dover.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. That a public hearing be held in City Hall on September 22, 1980 at 7:45 p.m. on a proposed amendment to the zoning map that would rezone from R-20 to RG-0 that property located at 1011 South Governors Avenue (lots #23 & #24), owned by Harry E. and Joyce A. Warrington.
2. That notice of the public hearing be given in accordance with the provisions of the Delaware Code.
ADOPTED AUGUST 25, 1980
REZONING REQUEST - 1027 & 1029 S. BRADFORD STREET - ERIC & AMY MCGREW
A request was received to rezone property located at 1027 & 1029 S. Bradford Street, owned by Eric W. & Amy McGrew. Prior to amending the zoning map and zoning ordinance of the City of Dover, a public hearing is required.
By motion of Mr. Witt, seconded by Mr. Boaman, Council unanimously adopted the following resolution and referred the request to the Planning Commission.
A RESOLUTION SETTING FORTH TIME AND PLACE OF PUBLIC HEARING ON A PROPOSED AMENDMENT TO THE ZONING MAP FOR THE CITY OF DOVER AND DIRECTING THAT NOTICE OF SAID HEARING BE PUBLISHED IN ACCORDANCE WITH THE PROVISIONS OF THE DELAWARE CODE.
WHEREAS, certain lands located at 1027 & 1029 S. Bradford Street are presently zoned for R-8 use, and
WHEREAS, it is necessary to hold a public hearing prior to amending the zoning map and zoning ordinance of the City of Dover.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. That a public hearing be held in City Hall on September 22, 1980 at 7:45 p.m. on a proposed amendment to the zoning map that would rezone from R-8 to RG-0 that property located at 1027 & 1029 S. Bradford Street, owned by The Amaze Group (Eric & Amy McGrew).
2. That notice of the public hearing be given in accordance with the provisions of the Delaware Code.
ADOPTED AUGUST 25, 1980
REZONING REQUEST - 860 & 846 S. STATE STREET - DR. ROBERT KIDD
A request was received to rezone property located at 860 & 846 South State Street, owned by Dr. Robert Kidd. Prior to amending the zoning map and zoning ordinance of the City of Dover, a public hearing is required.
In response to a question by Mr. Weyandt, Mr. Roe explained that Dr. Kidd is eligible to request the rezoning. Even though he has applied for a rezoning within the last year, that request was withdrawn prior to Council action.
Mr. Witt moved to adopt the following resolution and to refer the request to the Planning Commission. The motion was seconded by Mr. Carey and approved by a vote of seven (7) yes, one (1) no (Mr. Bewick).
A RESOLUTION SETTING FORTH TIME AND PLACE OF PUBLIC HEARING ON A PROPOSED AMENDMENT TO THE ZONING MAP FOR THE CITY OF DOVER AND DIRECTING THAT NOTICE OF SAID HEARING BE PUBLISHED IN ACCORDANCE WITH THE PROVISIONS OF THE DELAWARE CODE.
WHEREAS, certain lands located at 860 & 846 South State Street, are presently zoned for R-8 use, and
WHEREAS, it is necessary to hold a public hearing prior to amending the zoning map and zoning ordinance of the City of Dover.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. That a public hearing be held in City Hall on September 22, 1980 at 7:45 p.m. on a proposed amendment to the zoning map that would rezone from R-8 to RG-0 that property located at 860 & 846 South State Street, owned by Dr. Robert Kidd III.
2. That notice of the public hearing be given in accordance with the provisions of the Delaware Code.
ADOPTED AUGUST 25, 1980
CORRESPONDENCE
Morris Gross - Use of Property on Queen Street - Flea Market
A letter was received from Morris Gross, requesting permission to use property on Queen Street for a Flea Market during the labor day weekend. The property is located on Queen Street, between Loockerman Street and North Street. Mr. Gross is in the process of applying for a variance for this use from the Planning Commission. However, since the Planning Commission does not meet until late September, he is requesting that Council grant permission for this use for the Labor Day weekend only.
Mr. Roe explained that it was not a variance that Mr. Gross is requesting from the Planning Commission, but rather, it is a Conditional Use which requires a public hearing.
There was some discussion by Council as to whether or not a precedent has been set for this type of request by approving the request for parking around Dover Downs.
Chief Klenoski stated that Mr. Gross would have limited parking on the east side of Queen Street. Because of the railroad construction at Division Street, Queen Street is experiencing heavy traffic.
Mr. Richter expressed concern for approval of this request since the lot area is extremely small.
Mr. Bewick was opposed to constantly making exceptions to the zoning rules and also wondered if by granting this request Council would be influencing the Planning Commission’s final decision.
Mr. Witt moved that Mr. Gross be permitted to use his property located on the east side of Queen Street, for a Flea Market during the Labor Day weekend (Friday, Saturday, Sunday and Monday). The motion was seconded by Mr. Hardcastle and carried by a vote of six (6) yes, two (2) no (Mr. Bewick and Mr. Richter).
RECESS
At this point, Council recessed into a workshop to discuss a request for City water from Mrs. Harris, located on State College Road.
POLICY CHANGE - WATER AND SEWER SERVICE FOR NON-RESIDENTS
Mr. Bewick moved to allow non-residents (excluding trailers) to connect to the City of Dover mains where they exist on a public way abutting the non-residents’ properties.
The connections are to be limited to a maximum of 1" for water and 4" for sewer and the services are to be provided for single family properties only. Further, that a front foot of 125' maximum be determined as the limit of service in the event the property owner has a longer frontage. The specified frontage would be recorded with the service information and a further condition would be that it not be extended to serve other dwellings or facilities. The connection fees are to be those in effect at the time for non-resident customers and to be paid in advance. All other conditions are to remain in effect. A violation of the policy by the property owner will result in a discontinuance of service.
The motion was seconded by Mr. Hardcastle and carried with Mr. Witt voting no. In explanation of his negative vote, Mr. Witt explained that this is not a good policy for future growth of the City of Dover. It was his feeling that providing these services would hinder future annexation. He also felt that excluding trailers is in violation of previous Council policy.
SCHOOL CROSSING GUARDS
With the opening of School being so near, Mr. Hardcastle requested that Council make a final commitment to the Capital School District regarding school crossing guards.
Mr. Mogan reported correspondence with Dr. Goate’ revealing that the Capital School District has been able to obtain CETA employees to act as school crossing guards.
It was noted by Council that final action has been taken. In the Council Meeting of June 23, 1980, Council offered to subsidize the Capital School District in the amount of $10,000 for the year 1980/81, $5,000 for the year 1981/82 and to abandon the program at that point. Council also offered to utilize uniformed police officers in training new crossing guards.
Mr. Hardcastle expressed great concern for the safety of children since no final action has been taken on this matter and school will be opening within the week.
Mr. Bewick moved to reiterate Council’s stand in offering $10,000 towards the program the first year, $5,000 towards the program during the second year and the assistance of the City’s uniformed police in training the school crossing guards.
Mr. Mogan stated that school crossing guards for the Caesar Rodney School District, for those schools that are located within the City of Dover, are paid for by the Caesar Rodney School District. He informed Council that he has written to the Caesar Rodney School District requesting that unemployment compensation liability on the employees be included with that fee. He has received no reply to date.
The motion was seconded by Mr. Weyandt and unanimously carried with Mr. Hardcastle not voting.
STORER COMMUNICATIONS - BILLINGS
Mr. Witt explained to Council that it is his understanding that Storer Communications has chosen to take a portion of the State Utility Tax out of their basic rate and add it on top of the rate that Council approved. Mr. Witt felt that it was Council’s intention to set a top ceiling on this rate and wondered if this practice is legal.
Mr. Witt moved that this item be referred to the Utility Committee and the City Solicitor for verification of the practice and review of same to be sure that it is in agreeance with our Franchise Agreement. The motion was seconded by Mr. Bewick and unanimously carried.
OCTOBER 13th COUNCIL MEETING
Mayor McDonough explained that the October 13th Council Meeting will fall on a City holiday and requested that Council make other arrangements for this meeting.
Mr. Witt moved that the October 13th meeting be changed to Tuesday, October 14th. The motion was seconded by Mr. Carey and unanimously carried.
Meeting Adjourned at 9:50 P.M.
WILLIAM H. WILLIS
CITY CLERK
All orders, ordinances and resolutions adopted by City Council in their meeting of August 25, 1980, are hereby approved.
JOSEPH M. MCDONOUGH
MAYOR
August 29, 1980
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