CCW PACKET

COUNCIL COMMITTEE OF THE WHOLE AGENDA APRIL 23, 2019 - 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. UTILITY COMMITTEE ADOPTION OF AGENDA 1. EVALUATION OF BIDS - GENERATOR MAINTENANCE (STAFF RECOMMENDATION: AWARD A THREE (3) YEAR CONTRACT WITH THE OPTION FOR TWO (2) ONE (1) YEAR EXTENSIONS TO ROY'S ELECTRIC, INC. AS PER THE BID SUBMITTED IN RESPONSE TO ITB #19-0016COD) 2. ADJOURNMENT OF UTILITY COMMITTEE MEETING LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE ADOPTION OF AGENDA 1. PROPOSED RESOLUTION NO. 2019-06 AUTHORIZING THE ISSUANCE AND SALE OF UP TO $5,700,000 GENERAL OBLIGATION BOND OF THE CITY OF DOVER TO REFINANCE CERTAIN PRIOR DEBT AND AUTHORIZING ALL NECESSARY ACTION IN CONNECTION THEREWITH (STAFF RECOMMENDATION: ADOPTION OF RESOLUTION NO. 2019-06) 2. DOWNTOWN DOVER BUSINESS IMPROVEMENT DISTRICT (BID) BUDGET AND ASSESSMENT (TAX) RATES FOR FISCAL YEAR 2019-2020 (STAFF RECOMMENDATION: APPROVAL OF THE PROPOSED BUDGET AND ASSESSMENT (TAX) RATES FOR FISCAL YEAR 2019-20, AS PRESENTED) 3. PROPOSED AMENDMENTS TO EMPLOYEE HANDBOOK - PART-TIME EMPLOYMENT HOURS AND BENEFIT ELIGIBILITY (STAFF RECOMMENDATION: APPROVAL OF PERSONNEL HANDBOOK AMENDMENTS TO PROVIDE THE ABILITY FOR NON-BARGAINING PART-TIME POSITIONS TO WORK UP TO 29 HOURS PER WEEK) 4. ADJOURNMENT OF LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING ADJOURNMENT OF COUNCIL COMMITTEE OF THE WHOLE MEETING /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\COMMITTEE-AGENDAS\2019\04-23-2019 CCW AGENDA.WPD THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. PURSUANT TO 29 DEL. C. §10004(E )(2), THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS, WHICH ARISE AT THE TIME OF THE MEETING.

ACTION FORM PROCEEDING: Council Committee of the Whole (Utility Committee) AGENDA ITEM: DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 04/12/19 PREPARED BY: Sharon J. Duca, P.E., Public Works Director SUBJECT: Evaluation of Bids – Generator Maintenance REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager, Controller EXHIBITS: N/A EXPENDITURE REQUIRED: $36,097.13 FY20-FY22 AMOUNT BUDGETED: $36,097.13 FY20-FY22 FUNDING SOURCE (Dept./Page in CIP & Budget): Funding is provided within the operations budget. Future budgets includes funds in operational accounts for Wastewater (402-41-69-99-000-53031), Water Treatment Plant (400-40-76-99-000-53031), Electric Engineering (410-42-26-99-000-52061) and Facilities (100-12-25-99- 000-53031). TIME TIMETABLE: Notice to Proceed to be issued within 30 days of Council approval. FY 2019 work will occur from May 1, 2019 to June 30, 2019. RECOMMENDED ACTIONS: Staff recommends awarding a three (3) year contract with the option for two (2) one (1) year extensions to Roy’s Electric, Inc. as per the bid submitted in response to ITB #19-0016COD. BACKGROUND AND ANALYSIS The City of Dover currently has twenty (20) emergency generators that supply emergency power to critical infrastructure. These facilities include the Electric Administration Building, various sanitary sewer pump stations, the Water Treatment Plant, various water production wells, the City of Dover Warehouse, water production wells and City Hall. This contract will require the contractor to perform four (4) quarterly preventative maintenance service visits on each generator every year. One (1) of the four (4) visits annually will consist of complete preventative maintenance service at each generator. If it is found that a generator is in need of materials that are above the work outlined in the Invitation to Bid, the price for the repair, including all materials and labor, shall be pre-approved by authorized City of Dover personnel, prior to material being ordered. Historically, the City spends approximately $3,000 annually on additional repairs beyond the preventative maintenance aspect of the contract. The City is not obligated to utilize the awarded bidder to perform repairs on generators. Any additional work that is required for the generators shall be in accordance with the most recent City’s Purchasing Policy and Procedures. Bids were solicited and advertised according to City Policy by the City’s Contract and Procurement Manager under ITB #19-0016COD. Bids were received from three (3) contractors. Based on the contract documents, the yearly cost from each contractor is as follows:

ACTION FORM Evaluation of Bids – Generator Maintenance Contract Page 2 of 2 Year 4 (City Year 5 (City Contractor Location Year 1 Year 2 Year 3 Option) Option) East Coast Denton, MD $18,346.00 $18,346.00 $18,346.00 $20,176.00 $20,176.00 Diesel Services Green Tech Fuel Westminster, $24,500.00 $24,700.00 $24,900.00 $25,100.00 $25,300.00 Management, MD Inc. Roy’s Electrical Cheswold, $11,835.16 $11,835.16 $12,426.81 $12,426.81 $13,048.02 Services, Inc. DE $11,480.11* $11,480.11* $12,054.01* $12,054.01* $12,656.58* *=Roy’s Electrical Service, Inc. claimed Local Vendor Preference, which entitles a 3% reduction on the evaluation of prices, non- italicized costs are the actual bid costs. Roy’s Electrical Services, Inc. submitted all of the contractor’s qualification information. In conclusion, staff recommends awarding a generator maintenance contract to Roy’s Electrical Services, Inc. for the prices outlined above.

City of Dover MAYOR AND COUNCIL PROPOSED COUNCIL RESOLUTION NO. 2019-06 1 A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF UP TO $5,700,000 GENERAL 2 OBLIGATION BOND OF THE CITY OF DOVER TO REFINANCE CERTAIN PRIOR DEBT AND 3 AUTHORIZING ALL NECESSARY ACTION IN CONNECTION THEREWITH 4 WHEREAS, the City of Dover (the "City") is authorized pursuant to Section 50, Volume 77, Chapter 130, 5 as amended ("the City Charter") to issue general obligation bonds for the municipal purposes of the City as 6 set forth in a resolution authorizing such issuance; and 7 WHEREAS, pursuant to the City Charter, the City desires to issue a general obligation bond for the 8 municipal purposes set forth herein (the "2019 Bond"); and 9 WHEREAS, the City has previously issued its General Obligation Bond, Series 2012 (the "Series 2012 10 Bond") on May 24, 2012 for the purpose of financing the costs of certain capital construction projects and 11 improvements, including, but not limited to, (a) the construction of a new Dover Library; (b) a street 12 repaving program; (c) improvements to City Hall, including installation of sprinkler system; and (d) the costs 13 of issuance of the Series 2012 Bond; and 14 WHEREAS, the City has previously issued its General Obligation Bond, Series 2014A (the "Series 2014A 15 Bond") on November 14, 2014 for the purpose of financing the costs of certain capital construction projects 16 and improvements, including, but not limited to, (a) street and storm water infrastructure at the Garrison Oak 17 Technology Park; (b) radio equipment for police and fire operations; (c) self-contained breathing apparatus 18 for firefighters; and (d) the costs of issuance of the Series 2014A Bond; and 19 WHEREAS, the Series 2012 Bond and Series 2014A Bond (collectively, the "Prior Bonds") can be 20 refunded for savings, and the City desires to issue the 2019 Bond to refund the Prior Bonds (the "Refunding 21 Program"). 22 NOW THEREFORE THE CITY OF DOVER HEREBY ORDAINS (AT LEAST THREE FOURTHS 23 OF THE MEMBERS OF COUNCIL CONCURRING HEREIN): 24 Section 1. Amount and Purpose of the Bond. Acting pursuant to the City Charter, the City shall 25 issue its general obligation bond in the maximum aggregate principal amount not to exceed $5,700,000 to 26 finance the cost of the Refunding Program. 27 The monies raised from the sale of the 2019 Bond (including the investment earnings thereon) after 28 the payment of the costs of issuance, shall be expended only for the purposes authorized herein or as may 29 otherwise be authorized by subsequent action by City Council. Authorized purposes include the refunding P.O. Box 475 ˜ Dover, Delaware ˜19903 Community Excellence Through Quality Service

PROPOSED COUNCIL RESOLUTION NO. 2019-06 PAGE 2 30 of the Prior Bonds; interest on the 2019 Bond; and the costs of issuance of the 2019 Bond. 31 Section 2. Terms of the Bond. The 2019 Bond shall be sold to PNC Bank, National Association (the 32 "Lender") pursuant to (a) a proposal dated April 1, 2019, a copy of which is attached hereto and made a part 33 hereof and which is hereby approved by the City, and (b) the other terms and conditions to be contained in 34 a Loan Agreement between the City and the Lender (the "Loan Agreement"). The 2019 Bond shall bear 35 interest at a fixed rate to be determined by the City based on term to maturity, but not to exceed 2.809%. 36 Section 3. Security for the Bond. The full faith and credit of the City shall be pledged to pay 37 principal of and interest on the 2019 Bond. 38 Section 4. Qualified Tax-Exempt Obligation. The Bond is hereby designated as a qualified 39 tax-exempt obligation within the meaning of § 265(b)(3)(B) of the Internal Revenue Code of 1986, as 40 amended (the "Code"). For purposes of § 265(b)(3) of the Code, the Issuer and all entities that issue on 41 behalf of the issuer do not reasonably anticipate issuing more than $10,000,000, inclusive of the Bond, of 42 tax-exempt obligations in calendar year 2019. 43 Section 5. Details of the Bond. The Mayor and City Treasurer are authorized to determine the details 44 of the 2019 Bond including the following: the date of the 2019 Bond; provisions for either serial or term 45 bond; sinking fund or other reserve fund requirements; due dates of the interest thereon; the form of the 2019 46 Bond; the denomination and designation of the 2019 Bond; registration, conversion and transfer provisions; 47 provisions for the receipt, deposit and use of the proceeds of the 2019 Bond; provisions for the replacement 48 of a lost, stolen, mutilated or destroyed 2019 Bond; and provisions for issuing uncertificated obligations and 49 all procedures appropriate for the establishment of a system of issuing uncertificated debt. The 2019 Bond 50 shall be executed by the manual or facsimile signature of the Mayor and City Treasurer, shall contain an 51 impression of the City Seal or a facsimile thereof and shall be attested by the manual signature of the City 52 Clerk. 53 Section 6. Further Action. Each of the Mayor, the President of the City Council, the City Treasurer, 54 the City Manager and the City Clerk are authorized and directed to take such other action on behalf of the 55 City, as may be necessary or desirable, to effect the adoption of this Resolution and the issuance and sale 56 of the 2019 Bond and to provide for their security and to carry out the intent of this Resolution, including 57 the publication of notices and advertisements and the execution and delivery of customary closing 58 certificates. 59 Section 7. Effective Date. This Resolution shall become effective immediately upon its passage. 60 The City Clerk is hereby directed to publish once in a newspaper published in the City a notice in 61 substantially the following form: 62 "NOTICE IS HEREBY GIVEN that the City Council of The City of Dover, Delaware on 63 May 13, 2019 pursuant to Chapter 130, Volume 77, Delaware Laws, as amended, adopted a resolution 64 entitled as follows: 65 "A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF UP TO $5,700,000 66 GENERAL OBLIGATION BOND OF THE CITY OF DOVER TO REFINANCE CERTAIN PRIOR DEBT 67 AND AUTHORIZING ALL NECESSARY ACTION IN CONNECTION THEREWITH" P.O. Box 475 ˜ Dover, Delaware ˜19903 Community Excellence Through Quality Service

PROPOSED COUNCIL RESOLUTION NO. 2019-06 PAGE 3 68 "The purpose of the issuance and sale of said bond is to provide funds (approximately $5,700,000) 69 to pay the costs of the Refunding Program, including the refunding of certain prior debt of the City of Dover 70 and the payment of the costs of issuance of said bond." 71 "Any action or proceeding to contest the validity of said resolution or any of its provisions must be 72 commenced within thirty (30) days after publication of this notice. After expiration of such period of 73 limitation, no right of action or defense founded upon the invalidity of said resolution or any of its provisions 74 shall be asserted, nor shall the validity of said resolution or any of its provisions be open to question in any 75 court upon any ground whatsoever, except in an action or proceeding commenced within such period." 76 By order of the City Council of the City of Dover 77 City Clerk 78 ADOPTED this 13th day of May, 2019. 79 80 CITY OF DOVER, DELAWARE 81 Attest: 82 83 Clerk, Dover City Council President, Dover City Council 84 APPROVED by the Mayor of the City of Dover on the 13th day of May, 2019. 85 86 Mayor 87 S:\RESOLUTIONS-PROCLAMATIONS-TRIBUTES\2019\DRAFT\RESOLUTION NO 2019-06 AUTHORIZING THE ISSUANCE AND SALE OF UP TO $5,700,000 GENERAL OBLIGATION 88 BOND\Resolution No 2019-06 Draft - DMEAST #37297675 v3.wpd P.O. Box 475 ˜ Dover, Delaware ˜19903 Community Excellence Through Quality Service

Proposal for Financing Presented to: The City of Dover April 1, 2019

Preliminary Memorandum of Terms and Conditions For The City of Dover, Delaware April 1, 2019 This Preliminary Memorandum of Terms and Conditions is not a commitment to lend and does not create any obligation on the part of the Bank. The Bank will not be deemed to extend any commitment to the Borrower unless and until a formal commitment letter is issued. This outline is only a brief description of the principal terms of suggested facilities and is intended for discussion purposes only. Borrower: The City of Dover, Delaware (“Borrower”) Lender: PNC Bank, National Association (“Bank”) Credit Facility: Up to a $5,700,000 term loan Purpose: To provide a fully Bank Qualified, Tax Exempt refinancing of the two existing term loans which have a combined outstanding amount of approximately $5,625,000. Maturity: Up to a ten (10) year term loan Amortization: Monthly principal installments, on a mortgage style basis, amortized over a period of up to a twenty (20) years with any remaining balance due at maturity. Interest Rates: Borrower has the option of the following tax-exempt, bank qualified fixed rates: Amortization Based Upon Monthly Fixed Rate Term Fixed Rate Mortgage Style Payments 7 Years ~ 2.682% 13 Years 7 Years 2.757% 20 Years 10 Years ~ 2.734% 13 Years 10 Years 2.809% 20 Years 7 Years 2.711% 15 Years 7 Years 2.757% 20 Years 10 Years 2.763% 15 Years 10 Years 2.809% 20 Years Default Rate: 3% over the effective interest rate. Collateral: The Credit Facility will be secured by General Obligation of Municipality.

Commitment/ Closing Fee: $2,500. Expenses: All expenses incurred by the Bank, including credit reports, searches, recording fees, and reasonable legal fees (inside and outside), and any other in reference to structuring, documenting, closing, monitoring or enforcing the Credit Facilities, shall be for the account of the Borrower and payable at closing and otherwise on demand. Conditions Precedent: Customary for financing of this nature in form and substance satisfactory to the Bank: a) Documentation in form and substance satisfactory to the Bank including without limitation such documents that may be required to be prepared by Bond Counsel, and opinions of Bond Counsel and such other legal opinions as are deemed necessary by the Bank or are customary for transactions of this type. (1) b) Closing Certificates as to the accuracy of representation and warranties, compliance with covenants and absence of Event of Default or Potential \ Event of Default. (2) c) Satisfactory legal opinion. (3) d) Certified resolutions and incumbency certificate. (4) e) No material adverse change. (5) f) No material litigation. (6) g) Payment of all fees and expenses subject to reimbursement. (7) h) Other conditions precedent as appropriate for transactions of this nature. Reporting Covenants: Annual audited consolidated financial statements of the Borrower within 270 days of year end. Budget within 30 days of passage. Covenants: The Borrower will maintain a credit rating above BBB. Documentation: Loan documentation in form and substance satisfactory to the Bank must be executed and delivered containing representations, warranties, covenants, indemnities, conditions to lending, events of default and other provisions as are appropriate in the Bank’s opinion and specified by the Bank. Governing Laws: Delaware. Miscellaneous: Waiver of jury trial. Confession of Judgment.

CITY OF DOVER LEGISLATIVE FINANCE AND ADMINISTRATION COMMITTEE April 23, 2019 BUSINESS IMPROVEMENT DISTRICT - ASSESSMENT (TAX) RATES FOR FISCAL YEAR 2019-2020 Submitted by: Cheryl A. Bundek, AAS INTRODUCTION The Business Improvement District (BID) Ordinance adopted by City Council requires that Council must adopt a BID budget and assessment every year. This report presents the proposed budget and assessment for fiscal year 2019-2020. ORDINANCE REQUIREMENT AND BUDGET (A) Appendix D, Article III, Section 9(f) requires that a budget be submitted to City Council for consideration and approval. For your consideration, we have attached the FY 2019-2020 budget showing BID tax revenue and the expenses charged against this revenue (Attachment A). (B) For your consideration, we have also provided the tax calculation worksheet with recommended rates (Attachment B). REQUEST FOR ACTION We request Council to approve the following budget for fiscal year 2019-20 Attachment A, and Assessment (Tax) Rate for 2019-20 - Attachment B. T:\BID Assessment Rates\FY20 BID MEMO TO COUNCIL.doc 1

ATTACHMENT A BUSINESS IMPROVEMENT DISTRICT CASH RECEIPTS BUDGET FOR 2019-20 BID TAX REVENUE AND EXPENSES CHARGED AGAINST THIS REVENUE ADMINISTERED THROUGH CITY OF DOVER BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amount hereinafter named aggregating Fifty Thousand dollars, ($50,000.00) or so much thereof as may be necessary is hereby appropriated from current revenues and other funds for economic development purposes for the fiscal year beginning July 1, 2019, and ending June 30, 2020: REVENUE PROPOSED Tax Revenue $50,000.00 EXPENSES Personnel & Administration Expenses $50,000.00 T:\BID Assessment Rates\FY20 BID MEMO TO COUNCIL.doc 2

ATTACHMENT B CITY OF DOVER LEGISLATIVE FINANCE AND ADMINISTRATION COMMITTEE April 23, 2019 BUSINESS IMPROVEMENT DISTRICT - ASSESSMENT (TAX) RATES FOR FISCAL YEAR 2019-2020 BUSINESS IMPROVEMENT DISTRICT TAX CALCULATION WORKSHEET JULY 1, 2019 TO JUNE 30, 2020 ZONE 1 ZONE 2 ZONE 3 TOTAL Aggregate Assessments $42,512,800 $69,841,400 $41,864,100 $154,218,300 Assessment Tax Rate per $100 0.0588 0.0286 0.0119 --- Revenue Raised (Rounded) $25,000 $20,000 $5,000 $50,000 % Revenue Raised 50% 40% 10% 100% Number of Parcels 143 134 47 324 Average BID Tax $175 $149 $106 $0 NOTE: These figures were estimated per the 2015 reassessed values. The revenue percentages by Zone are per the City of Dover Code Appendix D-Article III, Section 9(e). T:\BID Assessment Rates\FY20 BID MEMO TO COUNCIL.doc 3

ACTION FORM PROCEEDING: Legislative, Finance & Administrative Committee DEPARTMENT OF ORIGIN: Human Resources DATE SUBMITTED: 4/12/19 PREPARED BY: Kim Hawkins, Human Resources Director SUBJECT: Proposed Amendments to Employee Handbook – Part-time Employment Hours and Benefit Eligibility APPROVALS: City Council REVIEW: Donna Mitchell, City Manager EXHIBITS: EXPENDITURE REQUIRED: Budget for Cadet Program AMOUNT BUDGETED: $55,000 FUNDING SOURCE (Dept./Page in CIP & Budget): 110-1700-542.10-13 Page 245 TIMETABLE: Upon Council approval RECOMMENDED ACTION: Approval of the Personnel Handbook amendments to provide the ability for non-bargaining part-time positions to work up to 29 hours per week. BACKGROUND The City’s Personnel Policy currently provides City benefits to those employees working 20 hours or more per week. This provision applies to certain positions in the Library, Recreation, and Police Departments. In order to keep benefit costs down and provide enhanced service levels for public safety and community services, staff is requesting the following changes to the Personnel Policy to reflect an increase in the number of hours part-time employees can work before benefits must be offered. The recommended changes would continue to provide benefits to currently eligible part-time employees working 20 hours per week. The changes would increase the number of weekly hours to 30 hours for employees hired on or after July 28, 2015. The most senior part-time employee working less than 20 hours per week was hired on July 28, 2015. As a result of the change, employees hired on or after July 28, 2015, can work up to 29 hours per week verses up to 19 hours however benefits will continue to be unavailable to them. Indicated are the sections of the Personnel Policy that would require change to implement. 1

ARTICLE IX Holiday Leave SECTION 1. HOLIDAYS Part-time regular employees hired prior to July 28, 2015 working twenty (20) hours or more per week shall receive a half-day, four (4) hours, with pay for each holiday designated above. If an employee in this classification works less than twenty (20) hours they are not eligible. Part-time regular employees hired on or after July 28, 2015 working thirty (30) hours or more per week shall receive a half-day, four (4) hours, with pay for each holiday designated above. If an employee in this classification works less than thirty (30) hours they are not eligible. ARTICLE X Vacation Leave SECTION 2. VACATION LEAVE – THE MANNER OF ACCUMULATION Effective January 1, 2009 as approved by the City Council on January 12, 2009, full-time regular employees shall accumulate vacation leave on the following schedule: (a) Each full-time regular employee from their date of hire until completion of six months of service shall earn vacation leave at the rate of one (1) day per completed month. (b) Each full-time regular employee who has completed six months of service however fewer than eight (8) complete years of continuous service shall earn vacation leave at the rate of one and one-fourth 1 ¼) days per completed month or fifteen (15) days per completed year of service. (c) Each full-time regular employee with eight (8) completed years of continuous service but less than fifteen (15) complete years of continuous service shall earn vacation leave at the rate of one and three-fourths (1 ¾) days per completed month or twenty-one (21) days per completed year of service. (d) Each full-time regular employee with fifteen (15) complete years of continuous service but less than twenty (20) complete years of continuous service shall earn vacation leave at the rate of two (2) days per month or twenty four (24) days per completed year of service. (e) Each full-time regular employee with twenty (20) or more complete years of continuous service shall earn vacation leave at the rate of two and one-fourth (2 ¼) days per month or twenty-seven (27) days per completed year of service. Part-time regular employees hired prior to July 28, 2015 working twenty (20) hours or more per week, shall accumulate vacation leave at one-half (1/2) the rate of full-time employees. 2

Part-time regular employees hired on or after July 28, 2015 working thirty (30) hours or more per week shall accumulate vacation leave at one-half (1/2) the rate of full-time employees. If an employee in this classification works less than thirty (30) hours per week they are not eligible for vacation leave. SECTION 3. VACATION LEAVE – THE MAXIMUM ACCUMULATION Vacation leave is accumulated from year to year; however total accumulated vacation leave on January first of each year is limited to an amount equal to one year's vacation time. One year of vacation is calculated by multiplying 12 (months) by the employee’s accrual rate in December of the prior year. An employee must earn pay for one-half of his or her workdays for that month to be credited with vacation leave. The employee cannot use a month's credit until he or she has earned pay for one-half of his or her workdays for that month. The following schedule was approved by the City Council on January 12, 2009. (a) Each full-time regular employee with fewer than eight (8) complete years of continuous service cannot have accumulated more than fifteen (15) days of unused vacation leave as of January 1 of each year. (b) Each full-time regular employee with eight (8) complete years of continuous service but less than fifteen (15) complete years of continuous service cannot have accumulated more than twenty-one (21) days of unused vacation leave as of January 1 of each year. (c) Each full-time regular employee with fifteen (15) complete years of continuous service but less than twenty (20) complete years of continuous service cannot have accumulated more than twenty four (24) days of unused vacation leave as of January 1 of each year. (d) Each full-time regular employee with twenty (20) or more complete years of continuous service cannot have accumulated more than twenty-seven (27) days of unused vacation leave as of January 1 of each year. Part-time regular employees hired prior to July 28, 2015 and working twenty (20) or more hours per week with the appropriate complete years of continuous service may accumulate vacation leave at one-half the rate that employees are allowed in a, b, c, and d above. Part-time regular employees hired on or after July 28, 2015 working thirty (30) or more hours per week with the appropriate complete years of continuous service may accumulate vacation leave at one-half the rate that employees are allowed in a, b, c, and d above. 3

ARTICLE XI Sick Leave SECTION 2. SICK LEAVE – MANNER OF ACCUMULATION Full-time regular employees shall accumulate sick leave at the rate of one (1) day per completed month or twelve (12) days for each completed year of service. An employee must have earned pay for one-half of his or her workdays for that month to be credited with sick leave. The employee cannot use a month's credit until he or she has earned pay for one-half of his or her workdays for that month. Part-time regular employees hired prior to July 28, 2015 and working twenty (20) hours or more per week shall accumulate sick leave at one-half the rate for full-time employees. An employee must have earned pay for one-half of his or her workdays for that month to be credited with sick leave. The employee cannot use a month’s credit until he or she has earned pay for one- half of his or her workdays for that month. Part-time regular employees hired on or after July 28, 2015 working thirty (30) hours or more per week, shall accumulate sick leave at one-half the rate for full-time employees. An employee must have earned pay for one-half of his or her workdays for that month to be credited with sick leave. The employee cannot use a month’s credit until he or she has earned pay for one- half of his or her workdays for that month. Part-time regular employees hired prior to July 28, 2015 and working less than twenty (20) hours per week are not eligible for sick leave. Part-time regular employees hired on or after July 28, 2015 working less than thirty (30) hours or more per week are not eligible for sick leave. Article XIII Other Types of Leave SECTION 5. BEREAVEMENT LEAVE Bereavement leave shall be granted to all regular employees and probationary employees who were hired prior to July 28, 2015 and are regularly scheduled to work 20 hours or more per week and who experience a death of a member of the employee’s immediate family. Employees hired on or after July 28, 2015 working less than thirty (30) hours or more per week are not eligible for bereavement leave. Upon request, the employee maybe granted up to three (3) working days leave with pay. If the funeral is more than four hundred (400) miles from the City of Dover, the employee shall be granted up to five (5) working days, with pay, not charged to any leave balance, to arrange for and/or attend the funeral service or related matters. An employee may request additional time beyond the time provided. The City Manager or appropriate city official may grant such additional time to be charged against the employee’s sick leave. Immediate family is defined for the purpose of this section as spouse, mother, father, 4

guardian, children, sister, brother, grandparents, grandchildren plus the various combinations of half, step, in-law and adopted relationships that can be derived from those named, in addition to significant other if not married or separated from spouse, and any relative living with the employee. The City reserves the right to request verification of the relationship and funeral location. Hours granted as bereavement time shall be counted as hours worked for purposes of computing overtime and shall not be charged as vacation leave if such occurs while the employee is on vacation. The above section is subject to employee labor agreement, when applicable. ARTICLE XIV WORKER'S COMPENSATION SECTION 1. WORKER'S COMPENSATION LEAVE An employee absent from duty as a result of sickness or disability covered by Delaware Worker's Compensation Act may receive Worker's Compensation benefits up to 66 2/3% of the employee's average weekly pay provided the weekly benefit cannot exceed the maximum limit set by State Law. For the first sixty (60) calendar days that an employee is out under a licensed physician's care as a result of an on the job accidental injury, the City will guarantee 100% of an employee's base weekly pay. The sixty (60) calendar days of full pay is per injury and is cumulative. Partial days will be counted towards the 60 calendar days. In each case where the employee must be absent from duty more than sixty (60) calendar days because of an on the job accident, the City will cease its payments but will allow the employee to elect to use accumulated vacation and sick leave as a supplemental payment for the difference between his/her regular salary and the payments received under the Worker's Compensation Act. Such an employee may have deducted from his accumulated vacation or sick leave that fraction of a day which is the same as the fraction that the supplemental payment for one day is of a regular day's pay. Supplemental pay and workers compensation pay shall not exceed the employee’s average weekly wage. The City shall continue to pay for his/her individual group health insurance, the City’s share of dependent health coverage and the City's share of life, accidental death and dismemberment and accident and sickness insurance coverages. Upon returning to work an employee’s salary will be computed on the basis of the last salary earned plus any across the board or reclassification salary increase to which the employee would have been entitled during the disability covered by Worker's Compensation. Temporary employees, and part-time employees hired before July 28, 2015 working less than twenty (20) hours per week and part-time employees hired on or after July 28, 2015 working less than thirty (30) hours per week will be placed on leave without pay status and will receive all benefits for which they may be eligible for under the Worker's Compensation Act; but are not eligible for the 100% guarantee of base salary for the first sixty (60) days on Worker's Compensation leave. 5

ARTICLE XVII Employee Benefits SECTION 1. INSURANCE BENEFITS The City shall make group life insurance, group hospital, surgical and health insurance, accidental death and dismemberment insurance and off-the-job group accident and sickness available for full-time regular employees. Refer to the applicable employee labor agreements for specific details. (a) Group Hospital, Surgical and Health: The City shall pay a portion of an employee’s health care up to a specific amount. The City shall provide group hospital, surgical and health insurance coverage for employees and their families. The City pays 100% of each full-time regular employee’s individual coverage and 75% of the cost of dependent coverage. Effective July 1, 2012, the City will contribute 90.5% towards the total monthly insurance premium for full-time regular employees with individual health and prescription insurance coverage. Effective July 1, 2013, the City will contribute 85% towards the total monthly insurance premium for full-time regular employees with individual health and prescription coverage. Effective July 1, 2012, the City will contribute 85% towards the total monthly insurance premium for full-time regular employees with dependent health and prescription coverage (child(ren), spouse and family). Effective July 1, 2012, the City will contribute 85% towards the total monthly insurance premium for employees retiring on or after July 1, 2012. This is regardless of the coverage level (employee only, child(ren), spouse or family). The above section is subject to employee labor agreement, when applicable. (b) Group Life: The City shall pay 50% of the cost of individual employee coverage for full-time regular employees. The employee must pay the other 50%. The insurance shall provide coverage equal to twice an employee's annual salary rounded to the next $1000. Maximum coverage will be determined by insurance policy. (c) Accidental Death and Dismemberment: The City shall pay 50% of the cost of individual employee coverage for full-time regular employees. The employee must pay the other 50%. The insurance shall provide accidental death insurance coverage equal to twice the employee's annual salary and accidental dismemberment coverage based on a schedule rounded to the next $1000. Maximum coverage will be determined by insurance policy. 6

(d) Off-the-Job Accident and Sickness: The City shall pay 50% of the cost of the individual employee coverage for full-time regular employees. The employee must pay the other 50%. The insurance shall provide a weekly check for covered benefits for up to 52 weeks for an off-the-job disability accident or sickness. For employees who are represented by the Fraternal Order of Police (FOP) please see your employee labor agreements for benefit begin date and waiting periods. For all employees, with the exception of employees represented by the Fraternal Order of Police (FOP) the following waiting periods and conditions apply: Sickness: The employee is entitled to up to fifty-two (52) weeks of short-term disability coverage. There is an initial waiting period of 7 calendar days following the onset of an illness. During this 7 day period no benefits are paid. The 7 day waiting period counts towards the 52 weeks. Off Duty Accident: There is no waiting period following an off duty accident. The employee is entitled to up to fifty-two (52) weeks of short-term disability payments. (e) Long-term Disability Insurance: The City shall pay 100% of the monthly premium for all full-time non-bargaining employees. Approved by City Council on January 12, 2009. (f) Vision Insurance: The City shall pay 100% of the cost of vision insurance for the employee. Dependent coverage is not available. The plan shall provide for one eye exam every 24 months in addition to benefits for glasses or contact lenses. In the case of each insurance benefit listed above, it shall be the employee's responsibility to activate the coverage applicable. If an employee is enrolled between or on the first and fifteenth of the month for any of the insurance coverages, then his/her individual coverage shall be effective the first day of the following calendar month. If an employee is enrolled between or on the sixteenth and the last day of the month, then his/her coverage shall be effective on the first day of the calendar month following one (1) calendar month of employment. Dependent coverage must be taken when the employee enrolls for individual coverage or it may be delayed by the Insurance Carrier. Part-time regular employees hired prior to July 28, 2015 working twenty (20) or more hours per week shall be eligible for the same coverage listed above. However, the City’s share and the cost of the coverage shall be one-half (1/2) that for full-time regular employees. For each coverage where the City pays the full cost or a portion of the cost for full-time employees, the City will pay only one-half (1/2) of the same costs for eligible part-time employees. Part-time regular employees hired on or after July 28, 2015 working thirty (30) hours or more hours per week shall be eligible for the same coverage listed above. However, the City’s share and the cost of the coverage shall be one-half (1/2) that for full-time regular employees. For 7

each coverage where the City pays the full cost or a portion of the cost for full-time employees, the City will pay only one-half (1/2) of the same costs for eligible part-time employees. Part-time regular employees hired prior to July 28, 2015 working less than twenty (20) hours per week and those hired after July 28, 2015 working less than 30 hours shall not be eligible for the coverages listed in this section. Temporary employees shall not be eligible for the coverages listed in this section. 8