COUNCIL COMMITTEES

The Council Committees Meeting was held on December 14, 1998, at 6:15 p.m., with Council President Christiansen presiding. Members of Council present were Mr. Lambert, Mr. Pitts, Mr. Leary, Mr. Truitt, Mr. Carey, Mrs. Malone, Mr. Salters, and Mr. Weller (Arrived at 6:27 p.m.). Mayor Hutchison was absent.

AGENDA ADDITIONS/DELETIONS

Mr. Leary requested that Item #1, Proposed Ordinance Amendment and Procedures - Realty Transfer Tax, be removed from the Legislative and Finance Committee agenda. Mr. Salters moved to approve the agenda as amended, seconded by Mr. Leary and unanimously carried.

LEGISLATIVE AND FINANCE COMMITTEE

The Legislative and Finance Committee met with Councilman Salters presiding. Members present were Councilman Leary, Councilwoman Malone, Mr. Merritt, and Mr. Gorman.

Purchase of Vehicles - Police Department

The Police Department purchases a certain number of vehicles every year through its budget in accordance with the City of Dover Capital Investments Plan. This year the department is requesting to purchase these vehicles from Hertrich Fleet Services utilizing the State of Delaware purchasing contract. The details for this purchase are as follows:

                        Four (4) Ford Police Sedans at $20,162 each                           $80,648

Six (6) Ford Taurus Sedans at $14,030 each 84,180

                        Total                                                                                        $164,828

The Police Department’s fiscal 1999 budget includes $176,000 for the purchase of ten (10) police vehicles. This request is $11,172 below the amount budgeted. Should Council approve the request, the purchase order will be issued on January 12, 1999 and the vehicles should be received by May 31, 1999.

Mr. Christiansen noted that there are a number of police vehicles parked behind the station at various times and questioned the actual number of marked and unmarked vehicles that are parked compared to those being operated. Mr. O’Connor responded that he was not certain of the exact number, however, he stated that in order to avoid running the vehicles for 16 straight hours, some vehicles will sit idle.

Responding to Mr. Leary, Mr. O’Connor stated that until now the Crown Victoria was the only vehicle that carried the police package; the Ford Taurus now has the police package available.

Responding to Mr. Salters, Mr. O’Connor stated that the older vehicles will be sold or used in other departments.

Mr. Salters moved to recommend acceptance of staff’s recommendation, pending the receipt of information from Mr. O’Connor regarding the actual number of marked and unmarked vehicles that are parked compared to those being operated by the Police Department. The motion was seconded by Mr. Leary and unanimously carried.

UTILITY COMMITTEE

The Utility Committee met with Councilman Lambert presiding. Members present were Councilman Carey, Mr. Kramedas, and Mr. Farling. Mrs. Malone was deputized to serve in the absence of Mr. Weller.

Middle West Service Company Report

The City’s electric bond resolutions require that the City retain an independent engineering consultant to inspect the City’s electric system and to review the electric budgets and insurance program. The City’s current engineering consultant is Middle West Service Company. Members reviewed their Annual Report for Fiscal Year 1998/99.

Mr. Karia, Finance Director, briefly summarized the report as follows:

1.    Discussion on the working of Duke/Fluor Daniel arrangement for the power plant management.

2.    Confirmation that the Transmission and Distribution systems of the City are generally in good condition, well maintained and operate efficiently.

3.    A recommendation that a long range plan for our T&D system be prepared (currently in progress).

4.    A mention on continuous improvement in grounding and outage problems as well as the conversion of 4Kv to 12Kv.

5.    A discussion on the project and funding approval process and the fact that the City has placed more emphasis on the justification of projects.

6.    A mention that the revenue and expense budgets for 1998-99 provide for the adequate operation and maintenance of the electric system according to sound utility practices.

7.    A discussion of funding of the Improvement and Extension Fund.

8.    A conclusion that, for fiscal year 1998-99, the rates are adequate from the bondholder’s point of view.

9.    A review of the insurance program for our electric system.

Mr. Lambert stated that, typically, someone from Middle West Service Company is available to answer questions regarding the report. However, the City must pay a fee and transportation costs for the representative to appear. In an effort to minimize costs, a representative was not invited to discuss the report. Mr. Lambert stated that if any members had questions staff would obtain answers for them.

The fee for this report is $16,700, including expenses. Staff recommended acceptance of the report as submitted.

Mr. Carey moved to recommend acceptance of the report, seconded by Mrs. Malone and unanimously carried.

Emergency Electric Distribution Upgrades

Staff advised members that Joseph R. Smith, Inc. was previously awarded the bid for directional boring at various locations in the City, based on the cost per foot for boring, which was capped at $20,000 (this bid did not require approval from City Council).

As a result of a storm that occurred in June 1998, a number of areas on the distribution system experienced extensive storm-related damage. Due to the nature of the damage, the Engineering Division determined that it was necessary to replace a number of these distribution services. To increase reliability, it was decided to change the overhead lines to underground lines.

The upgrade work has begun in Mayfair, Crossgates, and Rodney Village. The total engineering estimate for boring is $300,000. Due to the number of outages and continuing problems caused by the storm damage in June 1998, internal approval to start the project was given by the City Manager. This item requires formal approval by Council. The above estimate is for work which has already been done or will be done by December 31, 1998.

There are no funds appropriated for these projects in the Improvement and Extension Fund. The budget will be revised with funds from the beginning balance in the Improvement and Extension Fund through the second budget revision in January 1999.

Staff recommended raising the cap on the contract to Joseph R. Smith, Inc. for the Electric Distribution Upgrade Projects for an amount not to exceed $300,000. The hourly rates for personnel and equipment will be in accordance with the current approved bid for Joseph R. Smith, Inc. Staff also requested that the item be added to Council’s agenda for December 14, 1998.

Mr. Carey moved to recommend raising the cap on the contract to Joseph R. Smith, Inc. from $20,000 to an amount not to exceed $300,000, as recommended by staff. The motion was seconded by Mrs. Malone and unanimously carried.

Boring at Various Locations For Electric Line Repairs And Upgrades

Many of the electric distribution lines in the City are deteriorating due to age and heavy use. A number of areas on our system currently have lines that have been in place for more than thirty (30) years. The age of these lines, combined with ever-increasing electric demand are causing voltage and reliability problems.

As the problem areas are identified, and in keeping with the policy of underground installation of electric service whenever and wherever possible, staff would like to convert the areas from overhead to underground service. For this purpose, directional boring of these affected areas is needed.

Bids for directional boring at various locations in the City, based on the cost per foot for boring, were received as follows:

                        Joseph R. Smith, Inc.                          $ 5.50  (2" bore over 1,000 feet)

                        White’s Construction Co., Inc.                       $10.00 (2" bore over 1,000 feet)

The majority of the work is for 2" boring. Joseph R. Smith was the low bidder for 2", 4" and 6" bores of less than or greater than 100’. Mr. O’Connor stated that the prices for the various diameters are as follows:

                                    2" - $5.50        3" - $6.25        4" - $7.50        6" - $14.00

The budget will be revised with funds from the beginning balance in the Improvement and Extension Fund through the second budget revision in January 1999.

The work performed under this bid will begin in January 1999 and continue through December 1999.

Staff recommended awarding the contract to Joseph R. Smith, Inc. for directional boring on the electric system at various locations in the City for an amount not to exceed $300,000.

Mr. Farling moved to recommend approval of staff’s recommendation, seconded by Mrs. Malone and unanimously carried.

Proposed Ordinance - Repealing Ordinance of September 7, 1914

In 1914, the City of Dover passed an ordinance granting conditional use of City rights-of-way to the Diamond State Telephone Company. Since that time, there have been many changes in both the telephone company and City of Dover that have caused a need to address this agreement.

Since the subject matter of the 1914 ordinance is now covered by other ordinances, Deputy City Solicitor Pepper prepared an ordinance to repeal the 1914 ordinance. The proposed ordinance would allow for a new agreement to be considered with Bell Atlantic Delaware.

Mr. Lambert explained that the 1914 Ordinance allows Bell Atlantic Delaware to use the City’s rights-of-way free of charge. The proposed ordinance would automatically place Bell Atlantic under existing ordinances which requires payment for use of the City’s rights-of-way.

Responding to Mr. Weller, Mr. Lambert stated that the City Solicitor has reviewed the matter and, while there may be some resistance from Bell Atlantic, the Solicitor feels confident that the City is well within its rights to repeal the Ordinance.

Staff recommended adoption of the proposed ordinance repealing the September 7, 1914 Ordinance, be approved.

Mrs. Malone moved to recommend adoption of the proposed ordinance (Attachment #1), seconded by Mr. Farling and unanimously carried.

Mr. Lambert moved to adjourn into Executive Session to discuss personnel matters, seconded by Mr. Weller and unanimously carried.

Meeting Adjourned at 6:45 P.M.

                                                                                    Respectfully submitted,

                                                                                    Robin R. Christiansen

                                                                                    Council President

RRC/tam