Attachment

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA JULY 14, 2014 - 6:00 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. Proposed Financial Reforms - Public Safety Fund 2. Parkway Academy Central School Resource Officer (SRO) Memorandum of Agreement (MOA) (Staff recommends authorization to sign the MOA with Parkway Academy Central and initiate hiring action for an additional police officer) 3. Village at McKee Branch (Formerly Walker Woods) Redevelopment Pay-in-Lieu of Taxes (PILOT) (Staff recommends authorizing the City Manager to negotiate a final agreement with Milford Housing Development Corporation regarding a proposed PILOT for the Village at McKee Branch) 4. One-Year Follow-Up - Disposal of Excess Property - 70 Mifflin Road, 299 College Road, and 29 North Kirkwood Street - Offer from Habitat for Humanity (On June 10, 2013, City Council approved the Legislative, Finance, and Administrtation Committee’s recommendation that it be determined that 70 Mifflin Road, 299 College Road, and 29 North Kirkwood Street are excess properties and that the City Manager be authorized to negotiate sale prices with Habitat for Humanity that minimize the write-off amount for the properties located at 70 Mifflin Road and 29 North Kirkwood Street and that the Standard Method of Disposition of Excess Property (with the possibility of a bid process) be utilized for the property located at 299 College Road.) 5. Adjournment by 7:00 p.m. /tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Agendas\2014\07-14-2014 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.

City of Dover Finance Department PO Box 475 Dover DE 19903-0475 Phone: (302-736-7018 FAX: (302) 760-4930 E-Mail: dmitchell @dover.de.us DISCUSSION MEMORANDUM To: Members of Legislative, Finance & Administration Committee From: Donna Mitchell, Controller/Treasurer Copy: Mayor, City Manager, & City Clerk Date: July 9, 2014 Subject: Discussion of Public Safety Fund For you discussion we have attached a summary of what a Public Safety Fund would look like based on the Fiscal Year 2015 Budget. Included in Public Safety for this discussion are the following divisions/cost items: Fire, Life Safety, Emergency Management Coordinator, Code Enforcement, Inspections, Police (all divisions), and Police Pension contributions (pass through of State Grant). These are the same divisions included in Public Safety in accordance with the grouping of expenditure categories in the Comprehensive Annual Financial Report (CAFR). A subtotal has been included to segregate the categories included in the CAFR and the Discussion Draft of the Proposed Financial Reforms. Segregating Public Safety Revenues and Expenditures for budgetary purposes is permissible, however for the audited financial statements they are required to be reported as General Fund Revenues and Expenditures along with all other General Government activities. If the decision is made to implement a Public Safety Fund, this will create additional workload for the Finance Department. We appreciate the opportunity to discuss the purpose and benefit of segregating these items into a stand-alone fund before making this change. We would also recommend that this change be implemented during the budget process and not after a budget has been approved. This would prevent a large volume of manual work moving budgets and current financial activity from one fund to the new fund.

City of Dover Public Saftey Fund - Discussion Only Fiscal Year 2014/2015 Revenues Fines & Police Revenue $ 629,300 Police Extra Duty 659,500 Police Grants - Extra Duty 124,000 Police Grants - Pension 500,000 Civil Traffic Penalties 500,000 Property Taxes (1) 13,327,700 Bank Loan for CIP - Fire/Police (2) 918,300 Subtotal 16,658,800 Permits & Other Fees 1,354,200 Total Revenues $ 18,013,000 Expenditures Police $ 13,981,100 Police Extra Duty 712,500 Fire 716,100 Life Safety (3) 504,800 Police Pension Contribution 500,000 CIP for the above Divisions 1,369,800 Subtotal 17,784,300 Code Enforcement 418,400 Inspections 602,100 Emergency Management Coordinator 88,000 Total Expenditures $ 18,892,800 Notes: (1) Property Taxes include $317,000 for Payment in Lieu of Taxes. (2) Bank Loan will convert to annual debt service cost of approx. $190K in FY16. (3) Life Safety includes Fire Marshal services and Ambulance contract.

ACTION FORM PROCEEDING: Legislative and Finance Committee AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Police DATE SUBMITTED: 7/10/14 PREPARED BY: Captain Timothy Stump / Administrative Division Commander Approval of Parkway Academy Central School Resource Officer (SRO) Memorandum SUBJECT: of Agreement (MOA) REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager EXHIBITS: None EXPENDITURE REQUIRED: $85,000.00 PROJECT REVENUE: $60,000.00 Reimbursement Revenues from the FUNDING SOURCE (Dept./Page in CIP & Budget): Parkway Academy Central TIMETABLE: After approval is received from the Council, the Police Department will sign the MOA with the Parkway Academy Central and initiate hiring action for an additional police officer RECOMMENDED ACTION: Approve the project as requested. BACKGROUND Earlier this spring, Ms. Gail Evans, the Principal of Parkway Academy Central (PAC) met with Chief Bernat to request a School Resource Officer (SRO) at their school which is located at 111 S. West St. Suite 200, Dover, DE. PAC is an alternative school for troubled youth. The school is requesting a start date of August 22, 2014. The PAC just completed its first year of a six year lease at its current location, but they have been in Dover for the past four years. They are requesting the presence of one police officer, 0900-1400 five days a week for its 180 day school year. This equates to 900 work hours. Since a normal work year is 2,080 hours per year, this equates to 57% of one work year. The cost of a new police officer with benefits is approximately $85,000.00 and the school is willing to pay $60,000.00 for the 900 hours of police service. To make this happen, a Memorandum of Agreement (MOA) between the PAC and the Police Department will be signed to form a contract. The contract would be for three years at $60,000 per year. Contract renewal will be completed in the second year of the contract and if there were no contract renewal, the city would have the option to discontinue the contract and release the SRO from the position when a police officer retires from the Dover Police Department. In that scenario, no replacement would be hired to replace the retiring police officer. The department will be coming back to the Committee in the near future with a full personnel plan that will not exceed the FY 15 budget. This is a win-win situation and will allow the police department to provide real time police service to the PAC and allow the department to have an extra uniform available. ACTION REQUESTED The Legislative and Finance Committee and Council approve the hiring of a police officer for this program.

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: City Manager’s Office DATE SUBMITTED: July 9, 2014 PREPARED BY: Scott D. Koenig, P.E., City Manager SUBJECT: Village at McKee Branch (Formerly Walker Woods) Redevelopment PILOT (Pay-in-Lieu of Taxes) REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: Scott D. Koenig, P.E., City Manager, Donna Mitchell, Controller EXHIBITS: Exhibit A – Draft Agreement; Exhibit B – City Tax Levy Summary EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIME TIMETABLE: Implement upon final approval of the redevelopment project. RECOMMENDED ACTION: Authorize the City Manager to negotiate a final agreement with Milford Housing Development Corporation regarding a proposed PILOT for the Village at McKee Branch. BACKGROUND AND ANALYSIS The Milford Housing Development Corporation is proposing the redevelopment of Walker Woods into the Village at McKee Branch. This redevelopment project is working through the approval process so they can reconstruct this area to support current market needs. As part of their project financing support, they are seeking to enter into a PILOT agreement with the City of Dover. The draft agreement has been reviewed by Mr. William Pepper, Assistant City Solicitor. The Milford Housing Development Corporation is proposing a PILOT in the amount of $5,000, prorated for any partial year. The amount of the PILOT will increase by two percent (2%) each year. The City of Dover property and tax records indicate the combined properties associated with the redevelopment of the Walker Woods Subdivision currently yield a tax levy of $14,058.97 per year.

Exhibit A

Exhibit A

Exhibit A

Exhibit A

Exhibit A

Exhibit A

Exhibit A

Exhibit B

Memorandum Office of the City Manager PO Box 475 Dover, DE 19903 Phone: (302) 736-7005 FAX: (302) 736-7002 E-mail: skoenig@dover.de.us To: Legislative, Finance & Administration Committee Members From: Scott D. Koenig, P.E. City Manager Date: July 8, 2014 Subject: Disposal of Excess Property – Various Locations In 2013, City Council authorized the City Manager to dispose of excess property at various locations throughout the City of Dover. This memorandum serves as an update on the three (3) property authorized for disposal: 70 Mifflin Road – Habitat for Humanity originally offered to purchase the property for $10,000 on May 10, 2013. There was an agreed upon counteroffer on September 5, 2013 in the amount of $12,000. The sale of this property was officially completed on October 8, 2013. The lien amount for the property was $12,175.68 so the City of Dover will write off $175.68. 29 North Kirkwood Street - Habitat for Humanity originally offered to purchase the property for $5,000 on May 10, 2013. There was an agreed upon counteroffer on September 5, 2013 in the amount of $5,800. The official property transfer has not occurred as of this writing due to concerns about the deed description in the Sheriff’s deed; however, the Assistant City Solicitor has indicated that the deed is consistent with the Kent County property records. We are waiting on an official response from Habitat for Humanity with a specific purchase date. If this purchase is not completed by September 30, 2014, the property will be offered through a public bid. The lien amount for the property was $16,511.12, so the City of Dover will write off $10,711.12 provided the transaction with Habitat for Humanity is completed. 299 College Road – The bid documents for the property have been completed and will be sent to the City’s purchasing agent by July 11, 2014. Bids are to be received in August 2014 with the sale to be completed within 90 days. The lien amount is $17,870.26. SDK/sdk