Attachment

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA JUNE 8, 2015 - 6:30 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE PUBLIC COMMENTS ARE WELCOMED ON ANY ITEM AND WILL BE PERMITTED AT APPROPRIATE TIMES. WHEN POSSIBLE, PLEASE NOTIFY THE CITY CLERK (736-7008 OR E-MAIL AT CITYCLERK@DOVER.DE.US) SHOULD YOU WISH TO BE RECOGNIZED. AGENDA ADDITIONS/DELETIONS 1. DISPOSITION OF CITY OWNED LAND – PROPERTY LOCATED AT 16 SOUTH QUEEN STREET, 18 SOUTH QUEEN STREET, AND 24 NORTH NEW STREET (STAFF RECOMMENDS THE FOLLOWING: 1. DETERMINE THAT THE PROPERTY IS EXCESS PROPERTY; 2. AUTHORIZE THE CITY MANAGER TO NEGOTIATE A FINAL SALE PRICE WITH HABITAT FOR HUMANITY THAT MINIMIZES THE WRITE-OFF AMOUNTS FOR 16 AND 18 S. QUEEN STREET; AND 3. AUTHORIZE THE CITY MANAGER TO DISPOSE OF 24 N. NEW STREET USING THE "STANDARD METHOD OF DISPOSITION") 2. DISCUSSION - FISCAL YEAR 2015 AUDIT PROGRAM (STAFF RECOMMENDS ACCEPTANCE OF THE AUDIT PROGRAM) 3. ADJOURNMENT BY 7:00 P.M. /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\COMMITTEE-AGENDAS\2015\06-08-2015 LF&A.WPD THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: City Manager’s Office DATE SUBMITTED: June 1, 2015 PREPARED BY: Scott D. Koenig, P.E., City Manager SUBJECT: Disposal of Excess Property – 16 & 18 S. Queen Street and 24 N. New Street – Offer from Habitat for Humanity. REFERENCE: N/A RELATED PROJECT: Violation of Dangerous Bulding Ordinance – City Demolition of Subject Properties; City of Dover 2008 Comprehensive Plan; City of Dover Consolidated Plan 2015-2019; Downtown Development District Designation. APPROVALS: Scott D. Koenig, P.E., City Manager and Donna Mitchell, CPA, City Controller EXHIBITS: Letter dated May 19, 2015 from Jocelyn Tice, Executive Director, Central Delaware Habitat for Humanity; Procedure for Sale and Disposition of Real Property EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: N/A RECOMMENDED ACTION: 1. Determine that the property is excess property; 2. Authorize the City Manager to negotiate a final sale price with Habitat for Humanity minimizes the write-off amounts for 16 & 18 S. Queen Street; 3. Authorize the City Manager to dispose of 24 N. New Street using the “Standard Method of Disposition”. BACKGROUND AND ANALYSIS The City of Dover acquired the subject properties at a monition sale due to liens for demolition expenses. These are excess properties, as the City has no use for the property and is better served by these properties being redeveloped and restored as taxable properties. The City of Dover has a procedure for Sale and Disposition of Real Property. The procedure includes a “Standard Method of Disposition” which begins at the Legislative, Finance and Administration Committee. The steps are articulated in the procedure, but include first a decision by Council (after a favorable recommendation by the Committee) to dispose of the surplus property, and subsequently the method of disposal (auction or sealed bid). The procedure also includes “Exceptions to Standard Method of Disposition”, which states as Exception D, “Donation of Land to Non-Profit Organizations: If, in the opinion of the Dover City Council, the donation of a parcel of excess land to a non-profit organization would be in the best interest of the City of Dover, Council then reserves unto itself the right to make such a donation. In this case, Habitat for Humanity has submitted submitted an offer to purchase the subject properties. Sale of these properties to Habitat for Humanity is consistent with the goals of the City of Dover 2008 Comprehensive Plan, the City of Dover 2015-2019 Consolidated Plan and the Downtown Development District Designation, to foster home ownership for low and moderate income households. This also supports the City’s goal and mandate to affirmatively further fair housing by allowing for location choices for low and moderate income households.

If the offers from Habitat for Humanity are accepted, we would need to write off a portion of the City’s costs for demolition and the other charges. A summary of the write-offs is as follows, based on the the offer from Habitat for Humanity and the lien value. Address Offer Price Lien Amount Write-Off City’s 2015 Amount Assessed Land Value 16 S. Queen Street $ 5,000 $ 12,275 $ 7,275 $ 10,400 18 S. Queen Street $ 5,000 $ 6,920 $ 1,920 $ 10,400 24 N. New Street $ 5,000 $ 35,908.46 $ 30,908.46 $ 11,000 The City Manager recommends negotiating a final agreement of sale and price for 16 & 18 S. Queen Street with Habitat for Humanity. The final write-off amounts for these properties will be relatively low based on the initial offer letter from Habitat for Humanity. In addition, by selling to Habitat for Humanity, we would be ensured that the lots would be developed and occupied by homeowners, and homeownership is important in creating strong communities. Due to the significant potential write-off amount for 24 N. New Street, the City Manager recommends disposing of the property using the “Standard Method of Disposition”. The City could potentially recover additional costs and reduce the amount of the potential write-off by seeking bids on the vacant property.

Exhibit A

Exhibit B ~ .• ... ' • t - - nuoiJ 1.1.fJ... . IU/ llff'i PROPOSED PROCEDURE FOR SALE AND DISPOSITION OF REAL PROPERTY 1. PtJRFOSE To edlblish a policy for the City of Do~ naulalinc the sale and dilpolitioa of e:m111 landa. z. LAWS AND POUCia Oiy of Dcwe1' Code of Ordinance&. Chlpt.er 2, Article IV. Secdon 2-99. authorims the Ille and disposal of excess pq>erty. · Thia policy will -.idudile the pmaedure for dUpoa1 ol •cea City owned nil pmpaty. 3. DETERMINA'110N A. City Slaff memim, 1SpOft detenaininf; lbat I 0iy OWDed parcel 0£ land ls excea fn naiuR and llllt dledUpJal of IUCll land would be beulk:iU to lhe City of DoYer, will request, thraaab ~ l.qilld.w IDd F'1iluice Commi&tm, rhll tile Dow.r Clty Council comider dllpolll of mch laad.. ~. STANDARD METHOD OP' OJSPOSrrION A. Tho Legi111d"e and F'anance Committee, upon receiving a requeac to dispose of' excea real property, shall, prior to malcid& a iecommendation to the Dcwm' City Coundl. request all pertinent information Including. but not limited to, tile followin1: a-1) dettrminatiaa that subject~ ii not n!qUired by any oeher Clty departm=t. a-2) written explmation of wky subject pucet is now surplus. a-3) detenninacion oCwhedter a mnlna chan&c would enhance the ale value of subject paRld and recommend aid change if wamanted. a-4) determine if pln)el's eicact location and slzo is known and, if not, recommend whether said parcel should be surveyed by the City prior to any sale attempts.

Exhibit B . ':. , - ·· • • Salo and Dilposition of R.411 Propeny P.rotwo - B. Dovet City Council, after receMn1 a po.sitive recommendation rrom the LecLsJatlvc and Finance CommlalCIC co dispose of a surplus parcel of land. nil. u put of its de.libenldons: b-1) determine if di.,,,., of the parcel i1 in lhe City'• beat inlelall. b-2) dc:lamiAe if dilpcml by ale, sift. or IOme o!hel' mear11 would belt aw Che City's intesuts. b-3) de1e1mine if 1he City Planner should be requested co initlara rezonm, plOCedurea. b~) publicizJD lho pmdnent lnrom.don conoeminc lhe surplus .,.reel ind It.I availability for purchale IO the aenenl public at l.n oaoe a week tor two weeks in a Iacal newspaper. b-S) make public, ud a part of tho record, all written correspondence recelYed ud, airer the pubUc1zin1 requlrancnta of Secdoo 4, Paragraph B(4) ue Rid, bold a public hearing 10 rcoeive any other c:iUirn input. c. Dover City Council, after vodna to proceed with the Ille of mrplua Jwt, lhall determine: c-1) if an unbiued 'llpraial is meedod llO catabliah a minimum ICCepllbla price. c.-2) whoeher co 1111 the parcel by publJc auctlOll or by aled bid, and wbat tlle minimum accepcu>le offer will be. c·3) lhe decree ud ape of adwrtisln1, wilh a. minimum of expoturc bela& advertisemellt once a week for two weeb in a newspaper of 1eoenl circulation within the county. c-4) whether the circwnataaces of and surmuadin& a particular sale may be such that the best intereas of !he City would be ICl'Ved by listing the property for sale with a licensed real estate agenL D. City Staff shall, with Council direction: d-1) arrange f'or advcttitement of lhe ale d-2) drat\ the .mle bill sectin& out a dcsripdon of the parcel to be 10ld, time, dab:, and place of sale or bid opening, tho terms and condidons of sale, and the City'• reservation of aooepcance or ~jcdion of any or all bids received at the time of sale or bid opening.

Exhibit B ' <.. .. ' • • "Sale ancl Dilposicion of •· ....... J Property - Puc nee d-3) order and diltribub: a sufficient number of ale bills for postin1 and distribudon in lhe Councy Courthouse, It the site, and in the aenen.l area of the parcel. d-4) obtain the lllYkes of a pmCealonal auc:doneet ir aid ule ls ro be a public aucdon. d-5) conduct the ..e and submit the A!SUltl to Dover City Council. d~) oblain the lel'Vica of a lic:eGlld real Ulalle qeat lf Hlc ls ro be brokered. B. Daver City Council, after confirming the Ille, shall: e-1) request the City Sollciror to piepa.n: a deed for execution and to arrange for final leltlement wi&h dte purchaser at which lime the City will deliver the deed, lhe pwchuei' will pay all balanoe.i due, and the City Solicitor will ftCOrd said deed, in the Recorder of Deeds omce for Kent county. P. If any excess pmroel of land IJ lOO small or implar In shape to be of any value to anyone odl«- IUD an lhuttlna owner, it may be sold to such owner at either its fee appraised fair marlllt value, or at Its fair market value as established by che City's uaeameat reooals, ~- CoWlcil Iha.II .elect.. The c:osu of the appraisal and all lepl colb lhal1 be paid by Che owner requesting the conveyance. O. ColD of Conveyance UDlea oCherwlse spedfted by ~ a&y Caunc:U, all fees and costs, Jepl or otherwill:, &UOCialed widt the -.le and conveyuce of all ex~ lands shall be paid by Cbe pun:hasec. S. EXCEPTIONS TO STANDARD METHOD OF DISPOSITION Sale to an abuuine owner: When, In the opinion of CJty Council, a public sale would be dettimencaJ ro the lands of an abutter, and/or that a public sale would plact: the abutter at undue risk:; or th.at the combination of abutter's land and City's land would be substantially greater in value than that of lhe sum of the parcels considered individually, Dover City Council may direct the City A.ssessr:>r to have prepared one or more unbiased fee appraisals of the parcel. Thereafter, the subject land will be offend for sale IO the said abutter at the appraisal price, plus the appraisal fees, plus the legal costs. In lhe event the offer is not accepted, a public sale may be ordeced. Examples of dctrimenial affect might be when the surplus City parcel lies between an abuUin1 property and the scree1 and development of the ~reel would obstruct visibility of the abutter's property, of when lhe surplus parcel is .toned multi-family and abuts a sincle family pa~.

Exhibit B -. ... ,. Salo and DilpOlltion of & Property ..- • f ,.,... - J>qoPovr Tqdo pf lancts· A 1rade of lands may be 1ppnMd when lt is shown beyond doubt that such a tnlde will be 4lqUl1 ro or batllcr than lhc lands to be tndod either on a •1quue foot for squue foot• measure udlar on a •crouar for dollar" ~ Cgnyeyaooo gfQdd Dpcxf and/or unhuikfab!c pugd3· City acquisitions for roads, utility DSICCS, etc. may, after such usaae i4 accomplished, leavo a small 1trip of land that is odd shaped and unbuildaWc. Dover Oty C.ouncil may approve lhe conveyance of this strip of land to an lbulting or propeity owner on reque11 said owner. The prico for dleae lands shall be at the same co.st basis as that i-id by the City. If conveyance is made in excess of two years aflec the dat.o of City aoql&ili.doa, then the COMllkndon shall either be bur:d on a prico eslabJlshed by an unbiased fee apprailll lllldc on lhe bisis of the wlue added ro die lbuldng property by the acqulsldon of said lands, ar on lbe City's cast buis for the pared adjusted for inflation, whichever Dover Qty Cocmdl an .... All fea, Jepl or ocherwise, wociat.od with the conveyance a.re to bo t*d by Ill: purchuer. P4ccdmD Donadgp of yod to Noo-Pmftc Oqaninl!nns: It, in lho opin1Dn of Dover City Council, Iba donation of a pucrl of eMeSS land Co a non-profit orpnlzadon would be In the belt intaest of 1be City of Dover, Council lhen re=ves unro Itself the rJght to make such doution.

Presented by: Donna Mitchell, CPA City Controller/Treasurer & William Seymour, CPA SB & Company, LLC June 8, 2015

 Three primary purposes  Matters to be communicated  Auditor’s responsibility  Planned scope and timing of audit  Significant findings from the audit 2

 To clearly communicate an overview of the audit scope, the timing of the audit, and the auditor’s responsibilities.  To provide timely observations arising from the audit that are relevant to oversight of the financial reporting process.  To obtain relevant audit-related information from those charged with governance. 3

 The auditor’s responsibilities under generally accepted auditing standards.  This will be detailed in the auditor’s engagement letter, a copy of which will be provided to each audit committee member. 4

 An overview of the planned scope and timing of the audit that is not so detailed as to compromise audit effectiveness.  This will be summarized in a memo to the committee and discussed with the committee before commencement of the audit. 5

 The auditor’s views about findings or issues that the auditor considers to be significant and relevant to those charged with governance regarding their oversight of the financial reporting process.  These will be communicated near or at the end of the audit. 6

City of Dover 2015 Audit Calendar JUNE JULY AUGUST S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 1 2 3 4 1 Detail Audit Plan 7 9 10 11 12 13 5 6 7 8 9 10 11 2 3 4 5 6 7 8 Submitted 14 15 16 17 18 19 20 12 13 14 Close AP & GL 16 17 18 9 10 11 12 13 14 15 Auditors - preliminary auditwork including walk throughs and inventory testing - Inventory 21 27 19 20 21 22 23 24 25 16 17 18 19 20 21 22 listing received morning of 6/15/15 from IT. Preliminary Audit Fuel measure @ 28 26 27 28 29 30 31 23 24 25 26 27 28 29 work plant 30 31 SEPTEMBER OCTOBER NOVEMBER S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 1 2 3 1 2 3 4 5 6 7 Draft Cafr to 6 7 8 9 10 11 12 4 5 6 7 8 9 10 8 10 11 13 13 14 LF&A Draft Test of controls Draft CAFR Final Changes 13 15 16 17 18 19 11 Schedules/State 13 14 15 17 15 16 17 18 20 21 started Complete * made to CAFR ments to auditor Test of Controls Draft CAFR to 20 21 22 23 24 26 18 20 21 22 23 24 22 23 24 25 26 27 28 Completed auditor Draft CAFR to CAFR Sent to 27 28 29 30 25 26 27 28 29 31 29 City Clerk GFOA *Draft CAFR completed by October 16 (includes Notes & Statistical Section) Draft CAFR completed by November 6 (includes Notes & Statistical Section) DECEMBER S M T W T F S Holidays - Green 1 2 3 4 5 Meetings with Auditors if requested by LFA 6 7 8 9 10 11 12 Key Dates in Yellow 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 7

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