City of Dover
Delaware
Delaware
LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on November 26, 2007, at 4:32 p.m. with Chairman Slavin presiding. Members present were Mr. McGlumphy, Mr. Salters (arrived at 4:35 p.m.), Mrs. Jones, and Mr. Shevock. Other members of Council present were Mr. Hogan (arrived at 4:52 p.m.) and Mr. Ruane.
AGENDA ADDITIONS/DELETIONS
Mr. McGlumphy moved for approval of the agenda, seconded by Mr. Shevock and unanimously carried.
Review of 2005 Charter Review Committee Recommendations - Article II (Continued)
During their meeting of September 10, 2007, members approved the schedule to complete a comprehensive review of the 2005 Charter Review Committee Recommendations, including public hearings in each election district, over the next six (6) months. Members began their review during their meeting on October 8, 2007.
As scheduled, members continued consideration of the recommendations to Article II - Mayor and Council, of the Dover Charter, as follows:
Section 5, City Charter (2nd paragraph) - Size; Districts (Section 2.02, Model City Charter - Eligibility, Terms, and Composition - (c) Composition)
Mr. Slavin reminded members that during their meeting of November 13, 2007, they felt that the size and district issue should have the input of the NAACP. He advised members that letters will be sent out to representatives of the NAACP and that a meeting will be scheduled specifically for this issue during the January 14, 2008, committee meeting. He has verbally contacted some of the representatives of the NAACP regarding this invitation, as well as Deputy City Solicitor Pepper.
Section 12, City Charter - Compensation and Expenses - Mayor and Council and Other Elected or Appointed Officials (Section 2.04, Model City Charter - Compensation; Expenses)
During their meeting of November 13, 2007, members considered the 2005 Charter Review Committee’s recommendation for adoption of a Resolution that would establish a Compensation Commission. As requested, the City Clerk provided members with the July 20, 2006, Minutes of the 2005 Charter Review Committee.
Mr. McGlumphy moved to recommend retaining Section 12 of the City Charter rather than Section 2.04 of the Model City Charter, seconded by Mr. Salters.
Mr. McGlumphy relayed opposition to relinquishing the responsibility of City Council to a Commission for determining the salary for the Mayor and Council.
Referencing the language in Section 2.04 of the Model City Charter, Mr. Shevock noted that it includes the provision for any increase to be provided after an election is held and that the current City Charter does not prohibit current members from an immediate salary increase. Mr. Slavin reminded members that there is a provision in the United States Constitution that sitting Congress cannot raise their own salary.
Mr. Ruane stated his support for the creation of a Compensation Commission, noting that previous discussions regarding salaries for the Mayor and Council have been very contentious. Concurring, Mr. McGiffin stated that consideration of these salaries has also been personal. It was his opinion that by having a commission responsible for this consideration, it would remove the personal element from the consideration and that it would be more objective.
Mrs. Jones indicated her support for the adoption of a Resolution creating a Compensation Commission, as well as the recommendation to include the language in Section 2.04 of the Model City Charter, rather than that of Section 12 of the current City Charter.
On a call for the question, the motion recommending that Section 12 of the City Charter be retained rather than Section 2.04 of the Model City Charter failed (Mr. Slavin, Mrs. Jones, and Mr. Shevock voting no).
Mr. Slavin stated that the issue for establishment of a Compensation Commission would address concerns regarding members of Council having a decision in the matter since the Council could reject the Commission’s recommendation; however, they would not be able to increase their salaries.
Mr. Shevock moved to recommend acceptance of the 2005 Charter Review Recommendation that Section 12 be replaced with Section 2.04 of the Model City Charter and adoption of the Resolution establishing the Compensation Commission, seconded by Mrs. Jones and carried with Mr. McGlumphy and Mr. Salters voting no.
Section 2.05 - Prohibitions, Subsection (a) - Holding Other Office, Model City Charter
Mr. McGlumphy moved to recommend including Section 2.05 - Prohibitions, Subsection (a) - Holding Other Office, as stated in the Model City Charter. The motion was seconded by Mrs. Jones and unanimously carried.
Section 5, City Charter (6th paragraph) - Councilman Filing and Running for Mayor
Members considered retaining the 6th paragraph of Section 5 to appear following Section 2.05(a) of the Model City Charter.
Mr. Hogan suggested that this requirement be inclusive of all elections. City Clerk’s Office Note: Due to a recent Special Election, it was the opinion of the City Solicitor that a member of Council wishing to file and run for the Mayor’s position would not have to relinquish their current seat as a member of Council.
Before this matter is presented to City Council, Mr. Ruane requested that the City Clerk conduct research regarding this paragraph of Section 5 of the current City Charter.
Mr. Slavin questioned if the rationale for the paragraph is to provide a fairness for members of City Council, explaining that if the requirement was not in place, half of the members of Council would be required to relinquish their Council seat to run for Mayor and the other half would not.
Concurring, Mr. Hogan suggested that to alleviate this unfairness, with nine (9) members of Council, there could be three (3) year staggered terms and, with a Mayor having a four (4) year term, the election for the Mayor would fall on a different group of Council each election.
In consideration of different alternatives, Mr. Ruane suggested consideration of the Mayor being elected by the members of City Council.
Mr. Slavin indicated that this matter will be deferred to allow the City Clerk to conduct research with regards to the 6th paragraph of Section 5 of the City Charter.
Section 35 - Removal of Employees by Manager (Section 2.05 - Prohibitions, Subsection (b) - Appointments and Removals, Model City Charter)
Mr. Salters moved to recommend including the language in Section 2.05 - Prohibitions, Subsection (b) - Appointments and Removals, as stated in the Model City Charter, rather than Section 35 of the City Charter. The motion was seconded by Mrs. Jones and unanimously carried.
Due to time constraints, Mr. Slavin stated that members will continue their review of the 2005 Charter Review Committee Recommendation at “Section 36 - Council not to Interfere with Appointments or Removals of Manager; Giving Orders to Subordinates of Manager Prohibited; Penalty for Same (Section 2.05 - Prohibitions, Subsection (c) - Interference with Administration, Model City Charter)” during their next meeting.
Responding to Mr. Ruane, Mr. Slavin explained that the purpose of this review is to create a document for consideration by Council so that when Council accepts the report and recommendations of the committee regarding the review of the Charter, they are accepting the work that the committee has accomplished as a work product and not as a final product.
Draft Comprehensive Annual Financial Report
During their meeting of November 12, 2007, members were provided a Draft of the City’s Comprehensive Annual Financial Report (CAFR) for the year ending June 30, 2007, which has also been provided to the City’s audit firm Faw, Casson, & Company, LLC. Due to time constraints and the length of the report, Mr. Slavin requested that members be given additional time to review the report and that this matter be brought back to the committee for further review during their next meeting.
In accordance with the auditing services calendar, staff provided members with a draft of the City of Dover CAFR for the year ending June 30, 2007. Still to be completed is the review of the statistical section, divider tabs, and page numbering, as well as including any changes recommended by the City’s auditors.
Mrs. Mitchell, Finance Director/Treasurer, advised members that the auditors are still reviewing individual fund statements and schedules, as well as the corresponding narrative in the report. She also noted that this is the first time the Audit Committee approach is being used in the preparation and presentation of the CAFR. Mrs. Mitchell provided explanations to major highlights, as well as any subsequent changes that will be incorporated into the final CAFR, which will be presented to members on December 10, 2007.
Duke Agreement Closeout
Members were reminded that the City’s contract with Duke Energy ended on June 30, 2006. The contract had a provision that required an audit of the financial results each year. Duke requested that the City negotiate a settlement to close out the contract and forego an audit. The remaining items that needed to be settled were the purchase of all spare parts and fuel inventories, metering equipment and the annual rebate to the City.
Mrs. Mitchell, Finance Director/Treasurer, provided members with the pre-negotiated and the post-negotiated invoices, as follows:
Duke Negotiated
Invoice Settlement
9/7/2006 11/17/2007
Consumable Inventory Expenses for FY2005-06 $2,666,923 $2,666,923
Meter System Expenses for FY2005-06 $75,000 $75,000
Spare Parts Inventory Expenses for FY2005-06 $1,214,326 $910,745
Rebate for FY2006 ($879,777) ($1,079,000)
Net Invoice Amount$3,076,472$2,573,668
Net Cash Flow Savings $502,804
Staff recommended that the City Manager be authorized to sign the Duke Contract Close documents.
Mr. Salters moved to recommend approval of staff’s recommendation, seconded by Mrs. Jones and unanimously carried.
Mrs. Jones moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 5:33 P.M.
Respectfully submitted,
Timothy A. Slavin
Chairman
TAS/TM/jg
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