BOND REFERENDUM WORKSHOP

Members of Council met on November 5, 1991 at 7:00 p.m. in a Workshop Session to discuss the proposed 1992 General Obligation Bond Issue, with Council President Christiansen presiding. Members of Council present were Mr. Lambert, Mr. Levitt, Mr. Pitts, Mr. Salters, Mr. Lynn, Mr. Weyandt and Mr. Hare. Mayor Richter and Civilian Member Leary were also present. Councilman Daisey was absent.

Council President Christiansen reminded members of Council that written comments were accepted for ten (10) working days after the close of the public hearing. The ten days are now over and all written correspondence has been distributed to members of Council. Mr. Lynn moved that the time frame for acceptance of written comments as a part of the public hearing be closed, but stipulating that public input from interested citizens be accepted at any time. The motion was seconded by Mr. Levitt and unanimously carried.

Members generally agreed to the following Agenda:

    1.  Review of Projects

    2.  Bond Ballot Format

    3.  Referendum Date

    4.  Education

REVIEW OF PROJECTS

(1) West Dover Fire Station

This project was originally estimated at a cost of $819,000. After review, the Robbins Hose Company suggested that the project costs be reduced to $750,000 by eliminating the finished second floor. It was agreed that the second floor will remain as a shell only until the space is actually needed.

There was considerable discussion on the need for a conventional, mason/brick structure, versus a prefabricated type of metal building. Although the metal building would be less expensive, members of the Robbins Hose Company recommended a conventional type of building, feeling that it would require less maintenance, would last longer and would be aesthetically in keeping with the surrounding area.

It was agreed that the project would remain in the bond issue at a cost of $750,000, realizing a reduction of $69,000 from the original projected costs.

(2) Aerial Ladder Fire Truck

The Robbins Hose Company has agreed to remove this project from the bond issue and purchase the truck using the City's annual $70,000 contribution through the company's capital equipment replacement schedule.

It was agreed that the project would be eliminated from the bond issue realizing a reduction from the original projected cost of $600,000.

(3) Police Station Renovation/Expansion

It was agreed that the Police Station Renovation/Expansion Project would remain in the bond issue at a cost for the new building to remain at $2.6 million and the renovation costs for the existing structure to remain at $500,000 (which was originally reduced from $1 million). The total cost of the project in the bond issue will remain at $3.1 million.

(4) City Hall Renovation/Expansion

The City Manager proposed a reduction from the original projected cost of $900,000 to renovate the current City Hall building and WSFS building to a proposed cost of $500,000 for renovation of the two buildings.

It was agreed that the project would remain in the bond issue at a cost of $500,000, realizing a $400,000 reduction from the original project costs.

(5) Warehouse Office Renovation/Expansion

The City Manager proposed a reduction from the original projected cost of $463,000 to $363,000. The reduction of $100,000 would be accomplished by delaying the renovation of existing office space.

After discussing this matter at length, members generally agreed that this project could be delayed.

It was agreed that the project would be eliminated from the bond issue, realizing a savings of $463,000.

(6) Schutte Park Phase I

In the original bond issue, the following components were delayed:

    Eliminate "Trails" - Savings of $400,000

    Reduce "Landscaping" from $225,000 to $175,000 - Savings of $ 50,000

    Reduce "Contingency" from $622,400 to $368,700 - Savings of $253,700

These delays resulted in a final project cost of $2,822,000. The City Manager proposed a delay on the dugouts ($17,600) and delay of site preparations ($6,400). In addition, it was recommended that the ball field lights ($176,000) become the responsibility of the electric fund. This provides a total reduction of $200,000, for a total project cost of $2,622,000.

Upon discussing the matter, members felt that pavement of the parking lot areas should be eliminated to allow proper runoff and in its place, crusher run should be utilized. This will result in further reduction of the project costs. Realizing that the exact amount of the savings is not known at this time, members agreed that the project should remain in the bond issue at a cost of $2.6 million, less the difference of paving versus use of crusher run.

(7) St. Jones Greenway

The original projected cost for the Greenway Project was $500,000. It was recommended that the following components of the Greenway project be delayed, for a total project cost of $173,750, realizing a savings of $326,250.

    Loockerman St. bikeway and pedestrian bridge-   $137,000

    Tree Plantings                              -    11,000

    Roadway to PWII                             -    25,000

    Clearing underbrush along embankment from

         Loockerman St. to Court St.            -    15,000

    Bridge across St. Jones River to Paul St.   -    73,000

    Contingency                                 -    65,250

         Total Reduction                        -   $326,250

                                                      ========

Upon discussing the matter, members requested that "Tree Plantings" ($11,000) be added back into the project, feeling that it is an important part of the project.

It was agreed that the project would remain in the bond issue at a total project cost of $184,750, realizing a reduction of $315,250. This figure was rounded up to $185,000.

(8) Library Basement Renovation

Renovations to the Library Basement is estimated to cost $55,000. Members agreed to eliminate this project from the bond issue, realizing a savings of $55,000. It was agreed that this project will be funded from the General Fund.

(9) Bond Expenses

Bond expenses were originally estimated at $257,000. With the elimination of certain projects and the reduction in costs of others, the bond expenses will be reduced. The final amount of bond expenses will be calculated by the Finance Director. (It is noted that the Finance Director has determined that the bond expenses will be reduced by $37,000, for a total cost of $220,000.)

BOND BALLOT FORMAT

There was much discussion on the appropriate format for the bond ballot with several options considered. Although some members felt that Council should prioritize the projects for the public, others felt that each project should be placed on the ballot for vote by the citizens.

Mr. Lynn moved that the five bond projects be placed individually, in a menu fashion, on the bond ballot for individual vote by the public. The motion was seconded by Mr. Pitts and carried with Mr. Hare and Mr. Lambert voting no.

Proposed Indoor Swimming Pool - Schutte Park

Mr. Hare moved that the proposal for an indoor swimming pool be placed on the bond referendum ballot as an interest-only question, with the City's Bond Counsel selecting the proper wording for the referendum. The motion was seconded by Mr. Salters and unanimously carried.

REFERENDUM DATE AND DETAILS

Realizing a considerable cost savings with a 15 year bond issue versus a 20 year bond issue, Mr. Lynn moved that the City utilize a 15 year bond issue. The motion was seconded by Mr. Weyandt and unanimously carried.

Since many changes have been made to the projects and their costs, members felt that the citizens should be afforded another public hearing prior to the referendum. It was agreed that the Bond Referendum will be held on December 11, 1991 with a public hearing to be held on November 12, 1991. Upon closing of the public hearing, it will be necessary for Council to adopt the Bond Resolution in order to meet all legal requirements.

Meeting Adjourned at 9:25 P.M.

                                  Respectfully submitted,

                                  Robin R. Christiansen

                                  Council President

RRC/DJB/jg