AD-HOC HAGGERTY & HAGGERTY REVIEW COMMITTEE

The Ad-Hoc Haggerty & Haggerty Review Committee meeting was held on November 17, 2008 at 6:00 p.m. with Council President Hogan presiding. Members present were Mrs. Williams, Mrs. Russell, Mr. Slavin, Mr. DePrima (City Manager), and Mrs. Mitchell (Controller/Treasurer). Representatives of the Dover Fire Department present were Mr. Jason Osika (past Fire Chief), Mr. Trey Small (Board of Directors), Mr. Brian Bashista (past Fire Chief), Mr. Charlie Boyer (past Fire Chief), Fire Chief David Carey, Mr. Paul Strochine (Fire Chief Elect), and Mr. Michael Reed (President).

Review of Financial Procedures Recommended by Haggerty & Haggerty

During their meeting of October 30, 2008, members began their review of the financial procedures recommended by Haggerty & Haggerty, Certified Public Accountants and Management Consultants in accordance with City Council’s directive resulting from their Regular Meeting of September 8, 2008 (approval of the Legislative, Finance, and Administration Committee’s recommendations from their meeting of August 25, 2008).

Members were provided eight (8) recommendations for their review and consideration.

Concurring with Mrs. Mitchell’s concerns regarding recommendation #1, Mr. DePrima stated that the Dover Code is clear that the Fire Chief is a Council appointed position. He explained that there is a liability issue for the City when there are full-time employees reporting to a part-time individual who may not be a trained manager who, in turn, reports to another untrained, part-time supervisor (Council President). It was his opinion that there is a need to have the City Manager or other full-time City employee provide oversight for employee issues to ensure employee policies are adhered to; otherwise, the City may become liable if action is taken incorrectly, such as grievances, etc.

Fire Chief Carey advised members that the Fire Chief supervises six (6) City employees. Should he have an employee issue, he explained the difficulty in contacting the Council President for guidance; however, as an alternative, the City Manager or Human Resources Director could provide the appropriate guidance since they are aware of employee policies and procedures.

After much discussion, Mr. Slavin suggested adding the following sentence to recommendation #1: “The Fire Chief may seek the advise of the City Manager”. Mr. DePrima stated that the word “may” is indicative of there being an option. Council President Hogan suggested that the sentence be reworded, as follows: “All employees shall remain under the supervision of the company elected volunteer fire department and the City Manager will act as the Fire Chief’s resource for personnel issues”.

Referring to recommendation #8, Mr. Slavin questioned if there is a need for further review of the approval by City Council regarding the election of the Fire Chief. It was noted that the requirements regarding the election and approval of the Fire Company officers would require an ordinance amendment; therefore, Mr. Slavin suggested that this matter be deferred for possible consideration in the future.

Regarding recommendation #2, Council President Hogan relayed concern regarding the City’s ability to commit to the yearly increase as proposed. Mr. Slavin also noted the inability to commit future Councils.

In response to time concerns relayed by Mr. Bashista, Mr. DePrima indicated that the budget process has been simplified and, therefore, does not require an exorbitant amount of time for department heads. More changes are being made this year to further streamline the budget process. He suggested that the quarterly payments be considered with recommendation #3. Since the City’s budget is the City Manager’s responsibility, his preference would be for the budget process to continue for the Fire Department as with all other City departments. Mr. DePrima advised members that these have been difficult financial times for the City and he anticipates the same next year; therefore, he questioned the ability of Council to assure a five percent (5%) increase when other departments are expected to make cuts to their budgets.

Mr. Bashista agreed with the elimination of the set increase per year; however, he relayed the importance of maintaining the $600,000 contribution as a “starting” point.

Responding to Council President Hogan, Mr. Bashista confirmed that the $600,000 contribution would be considered operating funds.

In an effort to obtain an unbiased opinion, Mr. Bashista advised members that a meeting was held with Mr. Tom Wagner, State Treasurer, and that he was requested to review the Haggerty & Haggerty Report. He stated that it was Mr. Wagner’s opinion that the proposed structure was reasonable and is one that is utilized by several other jurisdictions.

Mr. Slavin suggested the possibility of providing a grant-in-aid type of appropriation to the Fire Department.

Noting that the City has an annual expense included in the budget for ambulance service, Mr. Bashista explained that the Fire Department is requesting the same consideration, noting that the ambulance service company is not required to submit a budget or provide detailed budget reports.

Responding to Mr. DePrima, Mr. Bashista assured members that the Fire Department members have considered the results of having the City provide an appropriation and that it is understood that it may require them to “tighten their belt”; however, it was their feeling that an appropriation would be a step forward and that the result will be that the City will spend less money. He noted that recommendation #7 takes into consideration those capital needs beyond the Fire Department’s capital budget.

For clarification, Mr. Bashista explained that the proposed $600,000 appropriation could be provided for both capital and operating expenses for the Fire Department.

Mr. Slavin noted that there are three (3) issues involved with recommendation #2, as follows: 1) quarterly payments; 2) the reference of “financial contribution” used for the appropriation; and 3) providing the payment as a grant-in-aid.

Mr. DePrima indicated that providing quarterly payments would not be within the City’s Purchasing Policy. Responding, Mr. Bashista explained that should the City wish to provide the appropriation in a lump sum payment, there would be no objections; however, it was felt that the City would prefer to provide quarterly payments.

Mrs. Williams noted that if the City were to provide the payment to the Fire Department in a lump sum rather than quarterly, the City would lose interest income.

Responding to the concerns of Mr. DePrima regarding the budget process, Mr. Slavin suggested that the discussion of the other recommendations may provide a better directive for members in consideration of providing the payment to the Fire Department as a grant-in-aid.

There were no objections relayed regarding recommendations #3 or #4.

In response to Mr. Slavin in reference to recommendation #5, Mr. Bashista indicated that the Fire Department would be responsible for the costs associated with the audit. He suggested the addition of the following sentence: “The Fire Department will incur all fees pertaining to the audit”. Should it be the pleasure of Council, Mr. Bashista indicated that members of the Fire Department have suggested the use of Haggerty & Haggerty to conduct the audit since they perform audits for many non-profit organizations.

With regards to recommendation #6, Mr. Bashista stated that in accordance with Mr. Wagner, all fire departments within the State of Delaware are required to follow the State’s Purchasing Policy.

Responding to Council President Hogan regarding recommendation #7, Mr. Bashista stated that the Board of Directors for the Fire Department prepares a 10 year CIP Plan, which would be submitted to City Council.

In response to Mr. DePrima, Mr. Bashista explained that it was not the intent of the Fire Department for recommendation #7 to be consideration of items that have not been made a part of the Fire Department’s CIP Plan. He assured members that this recommendation would be reworded to better clarify its intent. Mr. DePrima noted that the City prepares its CIP during the late fall/early winter. City staff concurred with the suggestion made by Mr. Bashista for the Fire Department to submit their CIP to the City in January. Mr. Bashsita also noted that new officers take office in January and that the recommendation would be reworded to include the requirement for the submission of the Fire Department’s CIP to the City.

Noting that recommendation #1 refers to “company elected volunteer Fire Chief” and recommendation #8 refers to “volunteer Fire Chief”, Council President Hogan suggested that they be consistent in referring to the Fire Chief. Responding, Mr. DePrima suggested that the wording from the Dover Code be utilized to reference the Fire Chief.

Mr. Slavin noted that there are two (2) issues to resolve: 1) whether the City’s budget process will be utilized to support the request for the financial contribution to the Fire Department; and 2) if a formula will be utilized for providing the financial contribution.

Responding to Mrs. Williams, Mr. Bashista indicated that many financial contributions are provided based on the number of calls. He explained that calls are a direct correlation to the cost for providing the services. In addition, he advised members that it is easy to track calls. He suggested that members allow for further discussion regarding the development of a formula and various alternatives.

Concurring with Mrs. Williams, Mr. Bashista stated that providing a financial contribution based on a formula would eliminate politics from the equation, which would prove to be beneficial for both the Fire Department and the City.

Responding to Council President Hogan, Chief Carey stated that he would contact the City Clerk to schedule the next meeting. Mrs. Williams suggested that the next meeting be held at the Fire Department and Council President Hogan requested that staff avoid scheduling the meeting on a Wednesday.

There being no further business, Council President Hogan declared the meeting adjourned.

Meeting Adjourned at 7:05 P.M.

                                                                                    Respectfully submitted,

                                                                                    Kenneth L. Hogan, Council President

                                                                                    Chairman

KLH/RR/TM/jg

S:ClerksOfficeAgendas&MinutesMisc-MinutesHAGGERTY & HAGGERTY REVIEW11-17-2008 Ad-Hoc Haggerty Review.wpd