COUNCIL COMMITTEES

The Council Committees Meeting was held on April 14, 2003, at 5:30 p.m., with Council President Carey presiding. Members of Council present were Mr. Pitts, Mrs. Williams, Mr. Truitt, Mr. McGlumphy, Mr. Speed, Mr. Salters, Mr. Ruane, and Mayor Hutchison. Mr. Ritter was absent.

AGENDA ADDITIONS/DELETIONS

Mr. Carey, noting the absence of Mr. Jorgenson, requested the deletion of Item #4 - Proposed Ordinance Amendments - Section 11-4, Business License Fees - Planning and Inspections Fees Structure. He suggested that it be placed on the committee agenda for April 28^th and due to time constraints, moved directly to Council the same evening.

Mr. Salters moved for approval of the agenda, as amended, seconded by Mr. McGlumphy and unanimously carried.

LEGISLATIVE AND FINANCE COMMITTEE

The Legislative and Finance Committee met with Mr. Salters presiding. Members present were Mr. McGlumphy, Mrs. Williams, Mr. Shelton, and Mrs. Street.

RECOMMENDATIONS - CIVILIAN PENSION BOARD

Annual Review of Pension Benefits Paid to All Civilian Retirees

During the Civilian Pension Board Meeting of March 25, 2003, members recommended a 1.5% COLA increase to all City of Dover retirees that retired prior to December 31, 2002, and that it be retroactive from January 1, 2003. Mrs. Mitchell noted that the recommendation should be amended to allow for the increase to be effective July 1, 2003, not retroactive, since the current COLA is in effect until June 30, 2003.

Mr. Salters moved to recommend approval of a 1.5% cost of living adjustment (COLA) to become effective July 1, 2003 for all civilian retirees. The motion was seconded by Mrs. Williams and unanimously carried.

Proposed Ordinance Amendment - Article IX, General Employee Pension Plan

During the March 25, 2003 Civilian Pension Board Meeting, members reviewed proposed changes to Article IX - General Employee Pension Plan, as recommended by the City’s Actuary, Mr. Al Pike, to clarify provisions relating to employee contribution refunds. Mrs. Mitchell noted that the amendments were recommended to clarify the interest rate to be paid when refunding contributions to retirees.

The Civilian Pension Board recommended approval of the proposed amendments to Article IX - Section 2-186 - Form of Benefits.

Mr. Speed requested that the second to the last paragraph of Section 2-186, paragraph (b), be amended, by replacing “to” with “shall” to read as follows: “The amount of benefit payments received and the amount of the member’s contributions shall be determined from the record of the pension board of trustees.” Mrs. Mitchell noted that, due to striking paragraph (7), paragraph (8) should be renumbered as paragraph (7).

Mr. Salters moved to recommend approval of the proposed amendments to Article IX - Section 2-186 - Form of Benefits, with amendments, as recommended by the Civilian Pension Board (Attachment #1). The motion was seconded by Mr. McGlumphy and unanimously carried.

ARBITRAGE REBATE

Every five years, the Internal Revenue Service requires the City to have its bond reserves for the refunded bonds analyzed for arbitrage. The Internal Revenue Code provides that a local government investing tax-exempt debt issue proceeds in non-tax exempt investments at rates higher than that being paid on the debt may have to rebate the excess interest earned to the U. S. Treasury.

Mrs. Mitchell, Finance Director/Treasurer, advised members that this calculation was recently completed on the City’s 1993 Bond Issues for Water/Sewer and Electric Bonds. The final calculation results in a payment due to the U.S. Treasury in the amount of $43,500 on the 1993 Water/Sewer Bonds and $0 (zero) on the 1993 Electric Revenue Bonds. Although this is not a budgeted item, the payment to the U.S. Treasury will be transferred back into the Operating Fund from the Bond Reserve Account held by our Trustee. Mrs. Mitchell explained that the payment could not be made directly from the Bond Reserve Account. She also indicated that there would be excess funds in the reserves after the payment to the IRS which would be returned to the City.

Staff recommended approval of the payment to the U.S. Treasury in the amount of $43,500 to be offset by a transfer from the Bond Reserve Account.

Mr. McGlumphy moved to recommend approval of Staff’s recommendation, seconded by Mr. Salters and unanimously carried.

FEMA REQUIREMENT - PROPOSED ORDINANCE AMENDMENTS - CHAPTER 7.5, FLOOD DAMAGE PREVENTION

Mr. Jorgenson, City Planner, received notification from the Federal Emergency Management Agency (FEMA) that, in order for the City to maintain eligibility in the National Flood Insurance Program (NFIP), it would be necessary to revise the City’s floodplain regulations. Members reviewed the draft amendments necessary to comply with the FEMA requirements.

Staff recommended adoption of the proposed amendments to Chapter 7.5 - Flood Damage Prevention.

Mr. Salters moved to recommend approval of staff’s recommendation (Attachment #2), seconded by Mr. McGlumphy and unanimously carried.

BID - REPLACEMENT OF THE NESBITT (HVAC) UNIT AT CITY HALL

The current HVAC unit at City Hall is over 30 years old and has exceeded its life span; therefore, a new unit is required. Spare parts to maintain the unit are becoming scarce and the current unit has a non-working compressor. This replacement was originally scheduled and budgeted for FY 2004; however, due to the breakdown of the current unit and the nonexistence of repair capability, the replacement had to be accelerated. This item was approved by City Council as an amendment to the CIP during their meeting of January 27, 2003. Bids were requested and received as follows:

                          Vendor                                 Location                               Bid Amount

                          J. Grilli                                 Dover, DE                             $68,500

                          JF Subieski                           Wilmington, DE                    No Bid

                          Kanicki Services                  Bear, DE                                $86,450

Staff recommended awarding the contract to the low bidder J. Grilli of Dover, Delaware, in the amount of $68,500. Mr. DePrima indicated that staff has been advised that the manufacturer cannot deliver the unit until July 2003; therefore, it was requested that the $68,500 be carried forward to FY04. He stated that installation will begin upon the vendor’s receipt of material from the manufacturer and that preparatory work will begin in May or June, with the bulk of the project being completed in July. It was noted that, due to time constraints, staff requested that this matter be considered during the Council Meeting later this evening for final approval.

Responding to Mr. Shelton, Mr. DePrima noted that the large price difference could be attributed to Mr. Grilli being a local contractor who performs the regular maintenance and service on the existing system. It was his feeling that Mr. Grilli may have been able to refine his bid based on his knowledge of the system.

Mr. Salters moved to recommend that a purchase order be issued to J. Grilli in the amount of $68,500 for the replacement of the Nesbitt (HVAC) unit at City Hall, as recommended by staff. The motion was seconded by Mr. McGlumphy and unanimously carried.

Mr. Shelton moved for adjournment, seconded by Mr. McGlumphy and unanimously carried.

Meeting Adjourned at 6:00 P.M.

Mr. Truitt moved to reconvene the executive session, seconded by Mr. McGlumphy and unanimously carried.

                                                                                    Respectfully submitted,

                                                                                    Carleton E. Carey, Sr.

                                                                                    Council President

CEC/jg

S:ClerksOfficeAgendas&MinutesCommittee-Minutes20034-14-2003.min.wpd

Attachment on File at the City Clerk’s Office

Attachment #1 - Proposed Amendments to Article IX - Section 2-186 - Form of Benefits

Attachment #2 - Proposed Amendments to Chapter 7.5 - Flood Damage Prevention