COUNCIL COMMITTEES

The Council Committees Meeting was held on April 24, 2000, at 6:00 p.m., with Councilman Salters presiding in the absence of Council President Christiansen. Members of Council present were Mr. Lambert, Mr. Pitts, Mr. Leary, Mr. Truitt, Mr. Carey, Mrs. Malone, Mr. Weller, and Mayor Hutchison.

AGENDA ADDITIONS/DELETIONS

Mrs. Malone requested the addition of item #4, Comments by Mayor Hutchison - House Resolution 1452, to the Legislative and Finance Committee agenda. Mr. Leary moved for approval of the agenda as amended, seconded by Mr. Carey and unanimously carried.

LEGISLATIVE AND FINANCE COMMITTEE

The Legislative and Finance Committee met with Councilman Leary presiding. Members present were Councilwoman Malone and Mr. Merritt. Mr. Truitt was deputized to serve as a member.

Cost of Living Adjustment for Retirees and Increase in Minimum Monthly Benefit

During their meeting of April 4, 2000, members of the Civilian Pension Board considered providing retirees with a cost of living adjustment (COLA). After reviewing several alternatives, members recommended that all retirees be provided a $20 per month increase in benefit and that the minimum amount of benefits be increased from $100 to $200 for all retirees, effective July 1, 2000. It was noted that for those retirees currently receiving less than $200, the $20 per month increase will be instituted prior to increasing the minimum amount of benefits to $200.

Increasing the minimum amount of retirement benefits to $200 will require an ordinance amendment to Article IX, Section 2-186(b) of the Dover Code. The proposed amendment was reviewed and approved by the City Solicitor.

Responding to Mr. Leary, Mr. O’Connor stated that implementation of the recommendations will cost less than $35,000 and affect approximately 133 retirees. He indicated that the increase in pension benefits would not have a great impact on the budget and that the financial status of the pension plan can accommodate the increase in benefits. He explained that Pension Board members felt that the proposed increase in pension benefits will help maintain a balance to accommodate cost of living increases.

Responding to Mrs. Malone, Mr. O’Connor assured members that the proposed COLA will only affect those who have retired from the General (Civilian) Pension Plan.

Mrs. Malone moved to recommend approval of the COLA in the amount of $20 per month for all retirees and a proposed ordinance amendment to Section 2-186(b) that will provide a minimum monthly benefit in the amount of $200 for all retirees, to become effective July 1, 2000, as recommended by the Civilian Pension Board. The motion was seconded by Mr. Truitt and unanimously carried. (The proposed ordinance amendment to Section 2-186(b) will be considered along with the other proposed amendments to Article IX of the Dover Code during the latter part of the meeting).

Implementation of the 401A Plan to the Deferred Compensation Plan

During their meeting of April 4, 2000, members of the Civilian Pension Board recommended that the City implement the 401A Plan to the Deferred Compensation Plan and that the City’s five percent (5%) matching contribution be divided by providing two percent (2%) towards the 401A Plan and three percent (3%) towards the 457 Plan.

Mr. O’Connor explained that the 401A and 457 Plans are used by governmental agencies, similar to that of the 401K, which is used by private agencies and individuals. The inclusion of the 401A Plan to the Deferred Compensation Plan for the City of Dover will provide employees additional flexibility in managing their personal pension plan. Since the City will be maintaining the current five percent (5%) match, there will be no additional cost for the City to provide this benefit to the employees that are members of the Deferred Compensation Plan. He also noted that all contributions to the Deferred Compensation Plan are tax deferred.

Mr. Truitt moved to recommend approval of implementing a 401A Plan to the Deferred Compensation Plan and that the City’s five percent (5%) matching contribution be divided by providing two percent (2%) towards the 401A Plan and three percent (3%) towards the 457 Plan, as recommended by the Civilian Pension Board. The motion was seconded by Mrs. Malone and unanimously carried. (Note: This matter was referred to the City Solicitor for further review. The recommendation will require the adoption of a resolution and an ordinance amendment. Due to its complexity, it is requested that action be deferred until the Council Meeting of May 22, 2000).

Proposed Ordinance Amendments - Article IX - General Employee Pension Plan

The Civilian Pension Board has been reviewing the entire General Employee Pension Plan, Article IX of the Dover Code, for possible amendments. During their meeting of April 4, 2000, members of the Civilian Pension Board recommended approval of several ordinance amendments that will provide separation of the City’s pension plans (General Employee and Deferred Compensation), have the Board supervise only the General Employee Pension Plan, and allow retired participants the opportunity to serve and vote on the Board. The proposed amendments include increasing the minimum amount of retirement benefits from $100 to $200 and requiring employees to work 37½ hours each week to be considered full-time and eligible for the deferred compensation plan. There are also amendments that correct typographical errors.

Mrs. Malone moved to recommend adoption of the proposed ordinance amendments to Article IX of the General Employee Pension Plan (Attachment #1), as recommended by the Civilian Pension Board. The motion was seconded by Mr. Merritt and unanimously carried.

Comments by Mayor Hutchison - House Resolution 1452 (State and Local Government Economic Empowerment Act)

Mayor Hutchison advised members of proposed legislation, the State and Local Government Economic Empowerment Act (HR 1452), that would make interest-free loans available from the Federal Government to state and local governments for the exclusive purpose of building and repairing infrastructures. Such project could be financed for up to one-half (½) of the costs by eliminating the need to pay interest over 20-30 years and exorbitant bond fees.

Mayor Hutchison felt that the proposed legislation would provide the City of Dover, as well as other municipalities in the State of Delaware, the tremendous opportunity of receiving interest-free loans; therefore, requested that members endorse a Resolution supporting the legislation.

Several members relayed concern, noting that other similar legislation included requirements of the municipalities, and questioned the possibility of such requirements being included once formal legislation has been formulated. It was also suggested that the position of Representative Castle be determined before taking action regarding this matter.

Responding, Mayor Hutchison suggested that Representative Castle be requested to attend a Delaware League of Local Governments Meeting to share his thoughts and any additional information he may have regarding HR 1452.

After much discussion, it was suggested that action on this matter be delayed until further information is available and be added to the May 22, 2000 Legislative and Finance Committee Agenda.

Mrs. Malone moved to recommend endorsement of the concept and authorized Mayor Hutchison to contact Representative Castle to express the City’s interest in this legislation and invite him to attend a League of Local Governments Meeting to address all municipalities regarding this issue. The motion was seconded by Mr. Merritt and unanimously carried.

Meeting Adjourned at 6:27 P.M.

UTILITY COMMITTEE

The Utility Committee met with Chairman Lambert presiding. Members present were Councilmen Carey and Weller, Mr. Kramedas and Mr. Nichols.

Bid - Completion of Mayfair/Wedgewood Developments’ Underground Upgrade

The City of Dover has been in the process of converting all overhead primary and secondary cable to underground in the Mayfair and Wedgewood Developments in order to improve service reliability by reducing the occurrence of outages due to trees, wind, squirrels, etc. In addition, aesthetics will be improved by removing overhead cables and pole lines. In order to complete all underground electric in the Mayfair and Wedgewood Developments, including the installation of all wire from transformers to meter locations, bids were solicited for construction labor and received, as follows:

                        Fry Electric, Inc. (West Chester, PA)             $ 64,950

                        Joseph R. Smith, Inc. (Denton, MD)              $ 45,560

                        Kriss Contracting, Inc. (Hartly, DE)                          $205,198

Funding for this project is available in the Electric Improvement and Extension Fund. Staff recommended awarding the bid for construction labor for the Mayfair/Wedgewood Developments’ underground upgrade project to the lowest bidder, Joseph R. Smith, Inc., at a cost not to exceed $45,560.

Mr. Carey moved to recommend approval of staff’s recommendation, seconded by Mr. Weller and unanimously carried.

Bid - Repair Existing Oil Containment Lining

Over the years, transformer oil containment systems were installed above ground around four (4) substation transformers to comply with the Spill Prevention, Control, and Countermeasure Plans. The seamed areas of these systems are showing signs of leaking. It is the City’s responsibility to maintain the integrity and reliability of these containment systems; therefore, Compliance Environmental, Inc. was requested to locate a product which would meet all EPA requirements, be extremely durable, and have low maintenance to seal the inside of the containment systems.

In order to comply with the Spill Prevention, Control, and Countermeasure Plans, bids were solicited for the supply and installation of four (4) oil containment linings in accordance with the recommendations of Compliance Environmental, Inc. Funding for this purchase is available in the City’s Improvement and Extension Fund Budget.

Staff recommended that a purchase order be issued to the sole bidder, Haight Painting, Co., in the amount of $27,510 for the installation of four (4) transformer oil containment liners.

In regards to concerns of Mr. Lambert, Mr. O’Connor stated that all materials used for this project must meet Environmental Protection Agency (EPA) requirements.

In response to Mr. Weller, Mr. O’Connor explained that the areas of concern are not located on the inside of tanks, but rather a containment area. The installation of the linings would provide a sealer to prevent leakages.

Responding to Mr. Kramedas, Mr. O’Connor advised members that the majority of all bids include a one (1) year warranty.

Mr. Nichols moved to recommend that a purchase order be issued to Haight Painting, Co., in the amount of $27,510 for the installation of four (4) transformer oil containment liners, as recommended by staff. The motion was seconded by Mr. Carey and carried with one (1) opposed (Mr. Weller).

Mr. Weller moved for adjournment, seconded by Mr. Lambert and unanimously carried.

Meeting Adjourned at 6:39 P.M.

                                                                                    Respectfully submitted,

                                                                                    Reuben Salters

RS/lcg

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