COUNCIL COMMITTEES

The Council Committees Meeting was held on July 8, 1996, at 7:00 p.m., with Council President Christiansen presiding. Members of Council present were Mr. Lambert, Mr. Pitts, Mr. Truitt, Mrs. Malone, Mr. Fenimore, Mr. Salters, Mr. Hare and Mayor Hutchison. Mr. Leary was absent.

AGENDA ADDITIONS/DELETIONS

Mr. Salters moved for approval of the agenda, seconded by Mr. Fenimore and unanimously carried.

LEGISLATIVE AND FINANCE COMMITTEE

The Legislative and Finance Committee met with Chairman Salters presiding. Members present were Councilman Hare, Mr. Schaefer and Mr. Merritt. Councilman Leary was absent. Chairman Salters introduced newly appointed member, Mr. Merritt.

Proposed Ordinance Amendment - Article V, Section 2-118 - Records Management Program

In order to comply with State statutes, all local governments in the State of Delaware must adopt a Records Management Program for their respective public records. This ensures that all agencies follow uniform policies and procedures in a records management program.

In order to comply with the above requirement, an ordinance was prepared that amends Article V of the Dover Code by adding Section 2-118, which establishes a Records Management Program for the City of Dover. The City Solicitor has reviewed and approved the proposed ordinance.

The City Clerk informed members that this is a housekeeping ordinance that formalizes a policy already in use by the City.

Mr. Schaefer moved to recommend approval of the ordinance as submitted (attachment #1), seconded by Mr. Hare and unanimously carried.

IBM Maintenance Contract

The City contracts with IBM to maintain the AS/400 and related IBM computer equipment. The maintenance fees cover all labor costs and the replacement of defective or worn parts. This provides coverage for 24 hours per day, seven days per week. IBM is the sole source for this service as they are the equipment manufacturer. With the recent purchase of the upgrade, the City has been offered a few options by IBM for managing maintenance costs over the next several years. The options considered are as follows:

1.    Pay the maintenance fees on a monthly basis.

Since there is no contract to lock in prices, we used a conservative cost increase of 4% per year due to inflation. The total five year payout after 60 months is $61,804.

2.    Pay the maintenance fees on a monthly basis per a contract.

The same inflation factor as in #1 was used, but having a contract provides an additional discount. The total five year payout after 60 months is $51,156.

3.    Prepay the monthly maintenance fees for five years per a contract.

This locks in fixed prices and provides discounts for prepayment. The total five year payout after one month is $40,760.

4.    Finance the prepayment of #3.

This locks in the same fixed prices and provides the same discounts as option #3. IBM Credit Corporation is offering financing at 5.93%. The total five year payout after 60 months is $47,220.

Based on review and present value calculations by the Finance Director, the Information Services Director recommends approval of option #3. It is felt that it provides the maximum discount of cost without the addition of finance charges. The payment of $40,760 will be allocated equally each year to the department budget. The remaining balance will be recorded as a prepaid expense.

Mr. Hare moved to recommend approval of option #3, which requires the prepayment of the monthly maintenance fees for five years per a contract (with a total five year payout of $40,760 after one month.) The motion was seconded by Mr. Schaefer and unanimously carried.

Meeting Adjourned at 6:45 P.M.

UTILITY COMMITTEE

The Utility Committee met with Chairman Lambert presiding. Members present were Councilmen Pitts and Fenimore and Mr. Carey. Mr. Kramedas was absent.

Electric Rate Classification Revisions - Primary, Primary 2, Transmission Voltage Dover Air Force Base, and Transmission Voltage Scott Paper

The development of open access to transmission facilities and retail wheeling has made it imperative that our electric rates remain competitive. These rates will be used for our larger customers and include both specific classifications for general customer use as well as special contracts for our transmission class customers. The revisions effect the Primary Rate, Primary 2 Rate, Transmission Voltage Dover Air Force Base Classification and Transmission Voltage Scott Paper Classification. By implementing these rates, we will insure that the City is competitive with the area utilities.

Mr. O'Connor stated that he recently attended an APPA meeting in Atlanta, Georgia where retail wheeling and competitive utility rates was a major topic. Representatives of Walmart addressed the group informing that their company, on a nationwide basis with over 3,000 stores, will be negotiating electric service on a regional level.

Noting that rate classifications are changing frequently, Mr. Fenimore asked if the City Manager is comfortable with making short order changes in order to remain competitive. Mr. O'Connor stated that he is comfortable with frequent review of the rates by the Utility Committee, stating that we will need to tweak the rates until we feel comfortable with them. Agreeing, Mr. Fenimore stated that it is very important that we be sensitive to the needs of our customers and open to change when it is deemed appropriate. At the same time, however, we must be prepared to take the initiative to decline further rate negotiations when it is deemed necessary. We will look to our City Manager for guidance on this issue.

Mr. Fenimore moved to recommend approval of the proposed Electric Rate Classification revisions (Attachment #2), as recommended by staff. The motion was seconded by Mr. Pitts and unanimously carried.

Evaluation of Bids - Micro-Surfacing Contract

In accordance with the City's objective to maintain its streets in economical and highly usable fashion, the Department of Public Works has evaluated several interim pavement maintenance applications. Based on review of the existing technology in the field, the Public Works staff produced standards and specifications for a process known as micro-surfacing. The project specifications were completed in May 1996 and bids have been submitted by the following vendors:

            E.J. Breneman, Inc.                            Sinking Spring, PA                $ 89,018

            New York Bituminous                       Chester, NY                            $111,156

Public Works staff evaluated the bids and visited several locations with the low bidder to ensure that the quality of work meets City standards. Due to budget constraints, the program has been reduced; therefore, the amount of the adjusted low bid is $77,542. Staff recommended that the contract for the 1996 Micro-Surfacing Program be awarded to E.J. Breneman, Inc., in the amount of $77,542.

Mr. O'Connor explained that the concept of micro-surfacing is relatively new. Rather than replacing an entire roadway surface, micro-surfacing is resurfacing on top of the current roadway. It cannot be done on streets that have a weak base. It does not have as long of a life expectancy as total resurfacing, but it has a life expectancy of up to 2/3 of that of total resurfacing, which is approximately 12 years (depending upon the harshness of weather). Mr. O'Connor stated that Micro-surfacing is approximately 2/3 the cost of total resurfacing. Using micro-surfacing on some of our roadways will allow us to make an impression on our street program by re-surfacing more streets at a lower cost.

Mr. Fenimore stated that in discussing this concept with a Consulting Engineer to the Technology Transfer Unit at DelDOT, he was told that DelDOT has acted as a consultant to the Town of Fenwick when they recently used the same company. The process seems to have good potential in extending our roadways in terms of maintenance. Mr. Fenimore suggested that the City of Dover also take advantage of the free consulting engineering offered by DelDOT.

Mr. Carey moved to recommend approval of staff's recommendation to award the contract for the 1996 Micro-Surfacing Program to E.J. Breneman, Inc., in the amount of $77,542. The motion was seconded by Mr. Fenimore and unanimously carried. (It was noted that this item will be added to the Council agenda of July 8, 1996 for immediate action.)

Informational Discussion

Mr. Truitt relayed that he has been contacted by a constituent that has concerns with the speed limit on East Division Street. Traveling on E. Division Street, from Little Creek Road to Dover, the speed limit is 50 mph, which changes to 35 mph just east of Willis Road. It is felt that since there has been development of residential communities in this area, such as Independence Village and Acorn Farms, the 35 mph speed limit should be extended further east from Willis Road to just east of Acorn Lane. Mr. Truitt noted that Division Street is a State maintained roadway but requested that the City endorse the proposal. The City Manager will look into this matter.

Mr. Fenimore moved to adjourn, seconded by Mrs. Malone and unanimously carried.

Meeting Adjourned at 7:05 P.M.

                                                                                    Respectfully submitted,

                                                                                    Robin R. Christiansen

                                                                                    Council President

RRC/DJB