SPECIAL MEETING

May 31, 1983

A Special Meeting of City Council was held on May 31, 1983 at 7:30 p.m. with Mayor Carroll presiding. Members present were Messrs. Richter, Tudor, Boaman, Christiansen, Witt and Shevock. Councilman Hardcastle was absent.

The invocation was given by the Reverend J.H. Williams, Council Chaplain.

AGENDA ADDITIONS/DELETIONS

Mr. Weyandt requested that a written report on the Electric Department, prepared by Mr. Tudor, be read into the records of the Council proceedings.

Mr. Boaman requested an item to discuss a sidewalk sale in the downtown area.

Mayor Carroll requested an opportunity to present a letter received from Delaware State College.

Council unanimously accepted the additions to the agenda.

PUNCHEON RUN BIDS (RESOLUTION) - PUMPING STATION AND INTERCEPTOR AND FORCE MAIN

Mr. Richter reported a meeting of the Utility Committee prior to the Special Council Meeting to discuss a protest on one of the bid contracts submitted by a sub-contractor. The City Manager was instructed to procure a legal opinion from the City Solicitor on the bid contracts and a recommendation was initiated by motion to table further action on the matter.

Mr. Witt moved for acceptance of the Utility Committee Report, seconded by Mr. Christiansen and unanimously carried.

COLLECTIVE BARGAINING - POLICE DEPARTMENT - CITY OF DOVER

Mr. Bartolotta reported a tentative agreement between the City bargaining team and the Association of Police representatives. The Police Association Group is now in the process of a ratification vote that will be completed late this evening (May 31, 1983).

It is the recommendation of the City Manager’s Office that the two year contract amendments be approved as submitted.

By motion of Mr. Witt, seconded by Mr. Boaman, Council by a unanimous roll call vote (Mr. Hardcastle absent) adopted the following resolution:

WHEREAS, the City’s Bargaining Team has reached a tentative Agreement with the Dover Police Employees Association per the attached; and

WHEREAS, the City believes it is in the best interest of both the City and the Police Employees to accept the Agreement.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF DOVER DOES HEREBY RATIFY THE ATTACHED AMENDMENTS AND DIRECT THE MAYOR OF THE CITY OF DOVER TO SIGN SAME.

ADOPTED: MAY 31, 1983

ELECTRIC DEPARTMENT - AUTHORIZED PERSONNEL - 1983/84

Mr. Bartolotta related to a detailed staff report that concentrated on the Transmission and Distribution Departments of the Electric Division. A proposed revised Electric Department Budget has also been presented to Council which provides for 106 personnel. The aforementioned has been approved by the Legislative and Finance Committee.

Mr. Bartolotta stated his desire for a firm commitment on the proposed personnel strength to enable a recruitment process prior to July 1^st. The key to some of the problems in the Electric Department is the lack of mid-management, the lack of engineering and technical expertise coupled with a lack of procedures and work analysis. The requested additional 11 personnel would provide the City with strength where it is most needed, in the mid-management and engineering and technical positions. The additional personnel can be accomplished in terms of the existing budget with no increase in the base electric rates. He strongly recommended that the 106 positions be authorized for the ensuing year.

He stated that four or five of these positions would be filled immediately and once the new management team has been established, they will assess the organizational needs of the remaining departments. Additional positions will be filled only after the new management team has justified the requirements. He emphasized the need for flexibility in the given number of employees to enable the City Manager’s Office to make changes when necessary.

Mr. Boaman moved that the manpower staff in the Electric Department be set at 106. The motion was seconded by Mr. Shevock.

Mr. Weyandt moved to amend the motion that would allow 106 personnel in the Electric Department for budget purposes, but no hiring will be done below top level management until such time that they determine the need which will then be referred to Council for further discussion.

Questioned by Mr. Tudor, Mr. Weyandt outlined top management personnel as being an Electric Department Director, a head of the Transmission and Distribution Department, an Assistant to the Director and an Assistant to the head of the Transmission and Distribution Department.

It was the opinion of Mayor Carroll and Councilman Richter that the organization of the Electric Department should be a responsibility of the City Manager; therefore, there should be no reason for further referral to the Council on the matter.

Mayor Carroll ruled Mr. Weyandt’s amendment to the main motion out of order since it changes the character of the motion. This was substantiated by the City Solicitor.

Mr. Tudor inquired as to the total cost of the 11 additional men in the Electric Department.

Mr. Bartolotta gave a general approximation of $300,000.

Mr. Christiansen asked if the Electric Department could function without an Administrative Assistant until such time that the Director established a real need.

Mr. Bartolotta stated that the Administrative Assistant is a very critical position in that this person would handle all training and safety which is presently non-existent. In addition, the Director presently spends too much time on the budgetary process. Further, the Director presently is required to monitor the interchange agreement and handle collective bargaining.

By a roll call vote of five (5) yes, two (2) no (Mr. Tudor and Mr. Witt) with Mr. Hardcastle absent, the manpower strength of the Electric Department was set at 106.

RESOLUTION - AUTHORIZATION TO CITY MANAGER - ELECTRIC DEPARTMENT

Consistent with a recommendation from the Legislative and Finance Committee, Mr. Boaman moved to adopt a resolution authorizing the City Manager flexibility within the Electric Department to reorganize personnel that would involve job titles, reclassifications, and salaries within the perimeters of the proposed budget. The motion was seconded by Mr. Shevock.

Questioned by Mr. Richter as to the need for the resolution, Mr. Bartolotta stated that the key need is to give the City Manager the authority to make changes within the department quickly. He did not feel that his department had this authority presently.

As an example, he informed Council of losing an applicant for Transmission and Distribution Superintendent because of a salary limitation. The process of obtaining an upgraded salary for the position involved approximately three months discussion with Council.

Mayor Carroll advised Council that the City Manager does not have the authority to change categories, job descriptions, or salary scales.

It was noted that the City Manager has the power to operate the City, including the Electric Department, as provided by the Charter.

Mr. Bartolotta inquired of Council if he had the authority to reclassify and create new positions within the department consistent with the total number of authorized strength and the bottom line budget. For example, if a supervisory position is created, would he have the authority of reclassification. He added, if it is the understanding of Council that this power exists then there is no need for approval of the resolution.

Mr. Weyandt stated that if the City Manager thinks that a man is qualified and meets the criteria of the position, then he felt it would be the City Manager’s prerogative to initiate the change.

Mr. Richter called for the question.

By a roll call vote of six (6) no, one (1) yes (Mr. Boaman), with Mr. Hardcastle absent, the resolution was defeated.

SET PUBLIC HEARING - ELECTRIC FUNG BUDGET - FISCAL YEAR 1983/84

Mr. Witt moved to set a public hearing for the Electric Fund Budget during the Regular Council Meeting of June 13, 1983 at 7:30 p.m., seconded by Mr. Weyandt and unanimously carried.

COUNCILMAN TUDOR’S REPORT - ELECTRIC DEPARTMENT PROBLEMS

By motion of Mr. Witt, seconded by Mr. Weyandt, Council unanimously approved the following report on the Electric Department, as submitted by Councilman Tudor:

“So many conflicting views regarding faults and corrections of the city’s electrical division prompt me to put forth in writing basic facts that should be analyzed before anyone makes a decision. To reduce each into specific categories for better understanding, the items listed below should be viewed individually.

     1.   Power Plant                                     8.   Proposed Personnel Additions

     2.   Distribution                                      9.   Costs of Additions

     3.   Personnel                                       10.   Overall Effects

     4.   Outages                                          11.   Summary

     5.   Engineers Reports

     6.   Benefits to City

     7.   Future Competitiveness

1. Power Plant:

At the present time, was are lucky. The plant makes approximately two million dollars a year. Unfortunately, many people assume that this is a process that is automatic and not subject to outside changes or methods and will be competitive forever. Many of their decisions are based on this fallacy. Enclosed is just one of many articles showing proposed future changes.

Dover is not recognized in the industry as competitive. True, when looking at costs submitted to us periodically, we look good. The fact is that some of the areas in the comparison do not generate at all. They buy and resell.

Another fallacy is that the problems at the plant are because of lack of knowledgeable personnel. The fact is that design is at fault, not people. You could have had first class engineers on the payroll and the same faults would exist. Remember, the consultants report stated that we had a well run plant with excellent personnel.

2. Distribution:

This is our real problem and if we did not have this problem, no discussions or decision would now be under scrutiny.

Improper fusing, poor quality of workmanship, lack of maintenance, improper supervision, and personnel doing jobs that they are not qualified to do.

3. Personnel:

This is a hard item to discuss. The tendency is to paint a picture with a wide brush. Misfits are judged with competent people. The electric department slots have the appearance that positions were filled not on competency, but friendship and/or who was there the longest or who applied for the opening first.

In our engineering department we have individuals who can not draw a sine wave, size a transformer or size fusing or wire to a new installation. Unbelievable but true.

The City Manager hired an electrical engineer stating we needed one, then at a later date states he is not qualified to fill one of his proposed slots. A engineer has recently been moved from City Hall to the plant. He is stated as not qualified to fill any of the proposed slots. If they are not qualified, what are we using them for?

4. Outages:

Fox Hall: Cables buried so close to the surface that a resident shorted out the cable when installing his mail box.

Improper Terminations White Oak/Towne Point Area: Fuses and Fuseholders removed, aggravating an overloaded condition and making the problem bigger.

Mall: Poor Planning

North Street Substation: Cause unknown, lightning is theory only, unprovable.

5. Engineers Report:

Again, the power plant is design, not personnel problems. Keep in mind an engineer is not normally a business man. Costs, financing and past reports show they have different ideas on the same subject. None have told you about the recent hearings in Washington. The government is trying to set a goal of five cents per K.W. to the user. Dover is approximately ten cents. Ask Al Ward, our bond engineer, for details.

6. Benefits to City:

The power plant makes at present, two million dollars profit. The City takes approximately one and a half million and places it into the general fund.

Without this plant, it is conceivable that our tax rate could approach three dollars per hundred. Therefore, any decision should be long range to protect our way of life.

7. Future Competitiveness:

Any business not only has to give good service, it must do it cheaper to remain in existence.

Consultant reports have shown Dover on a constant diminishing ability to remain competitive. Ten years from now, cost reductions of others on the grid could put us in the position of not being able to resell any electricity, if we has any to sell.

8. Proposed Personnel Additions:

There is no doubt that more qualified bodies can give more results. We must remember, the present crash program is not necessary. This condition has been here for years. Hiring of people we can afford will not alleviate the need for consultants.

I personally would like to see the use of temporary consultants, training of existing personnel, a minimal hiring of additional people, and a better use of existing personnel.

9. Costs of Additions:

The hardest part of forcast. An example is the recent attempt by the City Manager to fill the slot of transmission and distribution. His forcast was a position in the high twenties, and since, he has reported no one was willing to accept; and now wants to offer in the thirties.

The one thing that is very obvious is the lack of total final estimates of total costs, now and future. When all items are considered; payroll, benefits, general expenses (car, radio, etc.), $500,000 per year to cover these changes is not inconceivable.

The question arises, what would costs be ten years later, $750,000? Or more?

10. Overall Effects.

The electric department is not an island, it is part of the overall city forces and services. Anything that happens there is viewed by other departments and equal treatment is expected.

One of the first items that will come to light is the high cost of a competent Electric Manager and then his Assistant Manager. These men will certainly be higher paid than the three proposed lower department heads. When it comes to light that their salary is near or more than the City Manager or his assistant, it will be proposed to raise the City Manager and his assistant so their salary is above theirs. After all, it will be pointed out, they are subordinate to the City Manager and his assistant. Other department heads will certainly expect the same. These costs are unknown but we certainly can expect a ratchet effect from all departments and from bottom to top.

11. Summary:

Decisions should not be based on public pressure such as Fox Hall, or switches turned off at substations. These are now known faults. They are being resolved now. By the time a decision is made, these will be behind use. The high cost will remain.

The electric plant, unlike the balance of city services, are always being compared with other utilities. The public will not stand for our rates to be higher than other sources. The only choices later will be to take less money from the plant for the general fund (which means much higher taxes) or raise rates. Raising rates will bring us much sooner to the point that the grid will not buy, because they can buy cheaper elsewhere, plus local dissatisfaction. By making the changes as proposed, certainly help us in service, but will accelerate the time regarding financial decision.

It has been brought out that by making the proposed changes would not have any bearing on the power plant’s problems. These are original design problems. All other problems are caused by lower echelon; lack of care or field supervisors lack of enforcing accepted standards.

An argument has been brought forth that we need additional men for tree trimming and general maintenance work. It has been stated that our present forces are too busy for this. If they are busy now, in a recession period, what is to be expected when a building boon starts? They are not being used as efficiently as they should. If it is stated, that is why we need the upper echelon personnel, what is to happen to the ones now in charge?

We must remember, these problems encountered did not happen yesterday, and no way will be corrected through a crash program, tomorrow. A more thoughtful, slow, deliberate approach should be utilized. Thoughtful of the future, slow enough that all known facts and failures can be incorporated in your decision wisely. Once the decision is made, it is unreversible.

Another item should be considered. The electric department is a technical division. It is our main money maker and we hope it continues to grow. This division should be managed by a technical manager of its own. Having a competent manager report to the City Manager who is not a technician appears foolish. It should have the same status of other divisions of the city government and have a representative at council same as the Assessor, Police and Mr. Roe’s office.

I personally feel that the electric manager’s position should be filled immediately and he have the status as described above. Let him fill any slots that are approved with people of his choosing. After all, he is responsible for them and must work with them. Therefore, he should be responsible for their qualifications and ability.

A training program of existing selected personnel as specialists along with guidance from consultants, manufacturers and suppliers can update practices and make a competent force.

We do not need to go out and hire all of these people. Mr. Weyandt made a proper statement. “Dover does not need to go first class, it is an expense that we cannot afford.”

I cannot support the proposed changes as outlined by the City Manager. It reminds me of someone trying to kill flies with a shotgun. After the flies have been killed, the real damage then becomes apparent, and very costly to repair.”

DOWNTOWN - SIDEWALK SALE

In behalf of the downtown merchants, Mr. Boaman requested approval from Council to hold a sidewalk sale on Loockerman Street during June 10^th and 11^th.

Mr. Witt moved for approval of the request, seconded by Mr. Weyandt and unanimously carried.

CORRESPONDENCE

Development of Victory Park - Delaware State College Campus

A letter was received from Mr. Phillip J. McGinnes advising of the development of a park known as “Victory Park” on Delaware State College campus. He requested that the City contribute eight dump truck loads of mulch material to assist in beautification of the project.

Mr. Weyandt moved for referral to the Parks, Playgrounds and Trees Committee, seconded by Mr. Witt and unanimously carried.

Meeting Adjourned at 8:05 P.M.

                                                                        WILLIAM H. WILLIS

                                                                        CITY CLERK

All orders, ordinances and resolutions adopted by City Council during their meeting of May 31, 1983, are hereby approved.

CRAWFORD J. CARROLL

                                                                        MAYOR

June 6, 1983

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