minutes

REGULAR COUNCIL MEETING The Regular Council Meeting was held on April 25, 2016 at 7:30 p.m. with Council President Slavin presiding. Council members present were Mr. Anderson, Mr. Sudler, Mr. Neil, Mr. Lewis, Mr. Cole, Mr. Hosfelt, Mr. Hare, and Mr. Hutchison. Council staff members present were Deputy Police Chief Mailey, Mrs. Mitchell, Mr. Koenig, Mrs. Townshend, Fire Chief Carey, City Solicitor Rodriguez, and Mrs. McDowell. Mayor Christiansen (departed at 8:01 p.m.) was also present. OPEN FORUM The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Slavin declared the Open Forum in session and reminded those present that Council was not in official session and could not take formal action. There was no one present wishing to speak during the Open Forum. The invocation was given by Councilman Anderson, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. Hutchison moved for approval of the agenda, seconded by Mr. Cole and unanimously carried. Mr. Lewis requested that item #7 - Semi-Annual Inspection by the City Manager - Robbins Hose Company, be removed from the Consent Agenda. Mr. Anderson moved for approval of the Consent Agenda, as amended, seconded by Mr. Neil and carried by a unanimous roll call vote. ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF APRIL 11, 2016 The Minutes of the Regular Council Meeting of April 11, 2016 were unanimously approved by motion of Mr. Anderson, seconded by Mr. Neil and bore the written approval of Mayor Christiansen. CERTIFICATE OF CONGRATULATIONS - 2016 EXCELLENCE IN DOWNTOWN REVITALIZATION - GREGORY V. MOORE, P.E. AND BECKER MORGAN GROUP - OUTSTANDING DOWNTOWN COMMUNITY PARTNER FOR THE CITY OF DOVER The City Clerk read the following Certificate of Congratulations into the record: WHEREAS, over the years, Becker Morgan Group has played an integral role in Downtown Dover redevelopment and has prepared architectural plans for several major projects in the downtown area, such as North Street improvements, Loockerman Way Plaza, 22-24 West Loockerman Street, and the former Acme site at 120 South Governors Avenue. Their staff has assisted with marketing downtown sites for development and provided extensive in-kind services in support of multiple projects in the City of Dover Downtown Development District; and

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 2 WHEREAS, Mr. Gregory V. Moore, P.E., Vice President of Becker Morgan Group, has served as President of the Downtown Dover Partnership since 2010, and members of Becker Morgan Group’s staff have served on the Partnership’s Design, Economic Development, and Parking Committees; and WHEREAS, during the 2016 Downtown Delaware Revitalize! Conference, hosted by the Delaware Economic Development Office, Mr. Gregory V. Moore and Becker Morgan Group were presented with the Excellence in Downtown Revitalization Award for Outstanding Downtown Community Partner for the City of Dover. Awards were bestowed on those who best embody Downtown Delaware’s mission of providing our state’s historic downtowns, communities, and small businesses with tools to revitalize their commercial districts, increase entrepreneurism and innovation, and enhance the quality of place. NOW, THEREFORE, THE MAYOR AND COUNCIL OF THE CITY OF DOVER, DELAWARE, do hereby present this Certificate of Congratulations to GREGORY V. MOORE, P.E., AND BECKER MORGAN GROUP upon receiving this significant award recognizing their dedication and commitment to transforming the vision of a vibrant downtown Dover into a reality. On behalf of the Mayor and Council, Mayor Christiansen presented the Certificate to Mr. William Neaton, City of Dover Economic Development Director. Mayor Christiansen stated that Mr. Neaton was accepting the certificate on behalf of the Downtown Dover Partnership (DDP), of which Mr. Moore and Becker Morgan are integral parts. He asked Mr. Neaton to relay the City’s great appreciation to Mr. Moore for his dedication in the revitalization of the downtown area. Mr. Neaton advised members that Mr. Moore was unable to attend this evening because he was giving a presentation in Georgetown for his company; however, he asked that Mr. Neaton express his appreciation for this award. Mr. Neaton noted that he had worked with Mr. Moore for almost eight (8) years and he had been a pleasure to work with, noting that he has a vision and the thoughts and work ethic to make downtown Dover a better place. CERTIFICATE OF CONGRATULATIONS - 2016 EXCELLENCE IN DOWNTOWN REVITALIZATION - CAMERON LLEWELLYN, CONTRACTOR - BEST HISTORIC PRESERVATION PROJECT - 6 SOUTH STATE STREET The City Clerk read the following Certificate of Congratulations into the record: WHEREAS, Mr. Cameron Llewellyn, President of Tidemark Construction, served as the contractor for Baird Mandalas Brockstedt, LLC’s renovation of the historic property at 6 South State Street, in the City of Dover Historic District. By exercising his professional skills, ingenuity, and craftsmanship, he transformed the structure into a modern and functional office space, while retaining a deep respect for the rich character of the past; and WHEREAS, during the 2016 Downtown Delaware Revitalize! Conference, hosted by the Delaware Economic Development Office, Mr. Cameron Llewellyn was chosen from a field of worthy competitors to receive the Excellence in Downtown Revitalization Award for Best Historic Preservation Project. Awards were bestowed on those who best embody Downtown Delaware’s mission of providing our state’s historic downtowns, communities, and small businesses with tools

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 3 to revitalize their commercial districts, increase entrepreneurism and innovation, and enhance the quality of place. NOW, THEREFORE, THE MAYOR AND COUNCIL OF THE CITY OF DOVER, DELAWARE, do hereby present this Certificate of Congratulations to CAMERON LLEWELLYN upon receiving this prestigious award, recognizing his contribution to revitalizing downtown Dover and preserving the rich heritage of its past. On behalf of the Mayor and Council, Mayor Christiansen presented the Certificate to Mr. Cameron Llewellyn. Mr. Llewellyn stated that there were not many people that were as brave as Mr. Kevin Baird, who had a vision to save this beautiful structure from the wrecking ball. He noted that it was a pleasure to work with Mr. Baird on this project and, although there were some stressful days, they became very good friends. Mr. Llewellyn stated that the sad part about an old building like this, is that it is never done. CERTIFICATE OF APPRECIATION - BAIRD MANDALAS BROCKSTEDT, LLC - 6 SOUTH STATE STREET The City Clerk read the following Certificate of Congratulations into the record: WHEREAS, construction of Dr. Henry Ridgely’s personal residence, located at 6 South State Street, Dover, Delaware, was completed in 1869 and has since undergone many changes in ownership, occupancy, and use over the years; and WHEREAS, Baird Mandalas Brockstedt, LLC purchased this property and arranged for remodeling and renovations to be done with sensitivity to the rich character of the building and in keeping with the property’s memorable past and prominent location in the City’s Historic District. For their efforts, Baird Mandalas Brockstedt, LLC received the 2015 James B. Jackson Award for Historic Preservation; and WHEREAS, Baird Mandalas Brockstedt, LLC further honors 6 South State Street by occupying this cultural and architectural landmark that is prominently featured on postcards and marketing materials that showcase the attractions of downtown Dover. NOW, THEREFORE, THE MAYOR AND COUNCIL OF THE CITY OF DOVER, DELAWARE, do hereby present this Certificate of Appreciation to BAIRD MANDALAS BROCKSTEDT, LLC in acknowledgment of their significant investment in the community and their commitment to improving the vitality of downtown Dover. On behalf of the Mayor and Council, Mayor Christiansen presented the Certificate to Mr. Kevin Baird. Mr. Baird thanked the Mayor and members of Council, and expressed a special thanks to Mrs. Ann Marie Townsend, Director of Planning and Community Development, Mr. Scott Koenig, City Manager, and the entire City staff. Mr. Baird noted that Mr. Llewellyn did a great job, but that

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 4 Baird Mandalas Brockstedt, LLC could not have done the job without the support and vision of the City and members of Council. Mr. Baird informed members that a second project was now underway, explaining that Baird Mandalas Brockstedt, LLC had acquired the building located behind 6 South State Street and would try to continue to bring jobs to the City of Dover and revitalize the area, to make it something everyone could be proud of. Mr. Slavin expressed appreciation to Mr. Llewellyn and Mr. Baird for opening their businesses in Dover and for keeping them in the downtown area. PRESENTATION - MAYOR’S SELECTION FOR THE JEFFERSON AWARDS LEAD360 CHALLENGE Mayor Christiansen reminded members that the LEAD360 Awards are a part of the Jefferson Awards Project which recognizes young people who have committed themselves to the community with service to others. He recognized that Councilman Lewis was a former National Jefferson Award winner, and invited him to assist in the presentation of the LEAD360 Awards. Ms. Dianne Bogle, Delaware Program Manager, Jefferson Awards Foundation, introduced Ms. Michele Fidance, National Director for the Jefferson Awards, and Ms. Olivia Curzi, Intern, Jefferson Awards Foundation and University of Delaware student. Ms. Curzi reviewed a presentation entitled “LEAD360 Awards Ceremony” (Exhibit #1). She explained that the LEAD360 Challenge, an initiative of the Jefferson Awards Foundation, is one (1) of the largest youth service contests in America. The Challenge taps into the energy and idealism of young people, encouraging and facilitating them to share their stories of service with millions. Mayor Christiansen, Mr. Lewis, Ms. Bogle, Ms. Fidance, and Ms. Curzi presented awards, as follows: Fairview Elementary School Voices of Unity Choir The Voices of Unity Choir at Fairview Elementary is a group of talented young students who have performed at various locations across Delaware and promote a positive sense of community. She’s The First - Dover High School Dover High School started a chapter of She’s The First which is a club that donates scholarship money, textbooks, and uniforms so that girls in underprivileged nations can get an education. Chase Christiansen - Safety Patrol - South Dover Elementary School Chase Christiansen is a Lieutenant for the Safety Patrol at South Dover Elementary School. Chase always has a smile on his face and he comes into school early and stays late to ensure the safety of his peers.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 5 Aysia Clay - Education and Literacy Aysia Clay is a member of the Delaware Prevention Coalition, a Youth Prevention Frontliner, a member of the For Girls Only luncheon and the Boys and Girls Club, a Sunday School Teacher, Praise Dance Leader, Meals on Wheels Volunteer, and has attended several leadership conferences. Senators in Action - Central Middle School The Senators in Action club has held fundraisers and sold handmade goods to raise a total of $1,000 this year, of which they donated $750 to Walter Bagley Hall, a transitional housing facility for homeless men who have restarted their lives at the Dover Interfaith Shelter. Holy Cross Knitting Club - Holy Cross Elementary School The Holy Cross Knitting Club has already donated more than 250 knitted hats this year. They donate the hats attached with cards with words of encouragement to recipients. Landon Bailey - Little League Baseball Coach - Men of Color Alliance Landon Bailey has given back to his community by empowering youth through coaching little league baseball. He is also a member of the Men of Color Alliance which reaches out to young men to influence them positively at a critical time in their lives. Grace Yeung - Elder Care Grace Yeung took a mission trip to Virginia to volunteer at homeless shelters and the homes of elderly citizens. During her most recent trip she was able to work with a team and help restore the porch of an elderly woman. JDG Middle School Food Drive - Positive Outcomes, Chipman Middle School, and Smyrna Middle School The JDG Middle School students at Positive Outcomes, Chipman Middle School, and Smyrna Middle School volunteered at the Food Bank of Delaware and held food drives at their schools. Weston Williams - Book Drive 4-H club member Weston Williams collected 4,500 books and distributed them to Mom House, Shephard Place, People Place, Bay Health Memorial Hospital and others to encourage people to read more. Mariah and Kiersten Todd - A Wish For Water - Mispillion Elementary School Sisters Mariah and Kiersten Todd organized a competition between grade levels to raise money during dress down days. Students paid to dress down and the girls also sold ice pops. In the past two years they have raised enough money for 91 clean water filters for the Global Aid Network.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 6 Stars Program - William Henry Middle School - Mayor’s Top Project The Stars Program is a group of students who select service projects to undertake as a group. The group collected hats, gloves and blankets and raised $350 to donate to the Governor’s Advisory Council for Exceptional Children. As the Mayor’s top project, this project represented the City of Dover at the statewide ceremony in Wilmington on April 18, 2015. DOVER HUMAN RELATIONS COMMISSION REPORT - MARCH 16, 2016 The Dover Human Relations Commission met on March 16, 2016 with Commissioner Griffith presiding until Chairman Henderson's arrival. Introduction of New Member Ms. Wanda Mullen, DHRC Commissioner, Third District, advised members that she resides on Townsend Boulevard. She serves as President of the White Oak/Towne Point Civic Association and deals heavily with City Council Representatives Cole and Neil, the Mayor, and the City of Dover. She currently works for Psychotherapeutic Services as a social worker/counselor and the program manager for their two (2) residential facilities, one (1) in New Castle County and one (1) in Felton. Ms. Mullen was previously a program manager for the Temporary Assistance for Needy Families (TANF) program and enjoys working with and helping people. She expressed her opinion that more information about the DHRC was needed in the community, noting that when her Council representative spoke to her about the Commission, she was unsure of what the DHRC does. Ms. Mullen stated the importance of getting out to learn what the community’s needs are in order to serve the community. She indicated that she is the wife of Pastor Herbert Mullen, who ministers in Ellendale, Delaware, and has an 14-year-old who is active in sports and music. She stated that she is interested in getting youth involved and felt the DHRC should get moving on ideas for youth involvement. Chair’s Resignation from the Education Committee The Commission accepted the resignation of Chairman Henderson from the Education Committee. Election of Committee Chair - Education Committee Ms. Dianne Bogle advised members that she was interested in serving as Chair of the Education Committee, although she indicated that it would be fine if someone else was interested. She stated that she had talked to Chairman Henderson about serving in this capacity. The Commission elected Ms. Dianne Bogle to serve as Chair of the Education Committee. DHRC Committee Updates Government Policy, Programs, and Practices Committee (McGiffin) No update was provided.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 7 Community Engagement Committee (Roach) Mr. Roach apologized for his absence at the previous meeting due to health concerns. He stated that a community clean-up event was held in Towne Point in February and the turnout was good. Mr. Roach shared that he attended and had been interviewed, which resulted in a newspaper article. Mr. Roach informed members that he had been talking with the Boys and Girls Club regarding the opening of their new facility in the Camden area. He stated that he was trying to communicate with the Boys and Girls Club to ensure that no one is left behind in regard to transportation and issues of eligibility. Mr. Roach stated that he had visited some Interdenominational Ministerial Alliance (IMA) services, noting that Chairman Henderson had expressed interest in reaching out to different entities in the community in regard to building a relationship with the DHRC. He advised members that there were a couple of IMA services coming up. Mr. Roach had also been working to engage kids at Booker T. Washington Elementary School. Mr. Roach indicated that he tries to get out in the community, not always representing the DHRC; however, he makes sure to let people know about the DHRC when he is asked. Mr. Roach stated that a police officer had spoken to him about the re-implementation of the Police Athletic League (PAL) in the community and discussed working with Mr. Roach in regard to obtaining coaches, volunteers, and things of that nature. Mr. Roach felt that outlets for kids were needed and hoped that this program would move forward. He stated his belief that PAL would involve all types of sports. Mr. Roach advised members that, in his profession as a Family Crisis Therapist at Booker T. Washington Elementary School, he is always out and about in the community and asked members to let him or the City Clerk’s Office know if there are events that they are unable to attend or that they would like him to attend with them to help to build relationships with the community and the City of Dover. Ms. Griffith asked Mr. Roach to let members know if there were events that he would like them to attend, stating her desire for the DHRC to become more involved in the community, as they had in November 2015 when they participated in the Central Delaware National Association for the Advancement of Colored People (NAACP) 1st Annual Community, Family, and Fellowship Dinner. Education Committee Ms. Bogle advised members that, as a parent, she attended two (2) Capital School District strategic planning meetings. She stated that the District was getting ready to roll out their strategic plan, noting that she works in the District Office and has a relationship with the District. Ms. Bogle indicated that she had spoken to the chair of the District’s strategic planning committee, who was supposed to connect her into related conversations that he had been having with the District Superintendent, and she hoped this would occur before the next DRHC meeting.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 8 Mr. Henderson advised members that a film entitled, “Cracking the Code” had been presented at the Dover Public Library in December and would be shown again in the chapel at Wesley College on Saturday, March 19, 2016 from 11:00 a.m. to 2:00 p.m. He planned to attend, as did some members of the State Human Relations Commission. Mr. Henderson stated that this was an excellent and eye-opening film and recommended that those who had not seen it attend. Responding to Mrs. Sadusky, Mr. Henderson explained that the film addresses racism and some of the subtleties of this issue, and he felt that it was something that everyone should be able to relate to. During the DHRC meeting of July 28, 2015, members discussed the possibility of partnering with Dr. Dan Young, curator of TEDx Wilmington, to bring a TED talk event to Dover. During the City Council meeting of January 11, 2016, members approved the Commission’s recommendation that the DHRC collaborate with the TEDx Dover organization. During the DHRC meeting of March 16, 2016, Mr. Henderson advised members that the TEDx conference that they had been discussing would be more involved than he had thought. He reviewed email correspondence received from Mr. Young and noted that a sponsorship prospectus from TEDx Wilmington University indicated the need to raise a minimum of $10,000 for the event and that Dr. Young had asked participants to focus on getting four (4) sponsors at any level. Mr. Henderson felt that the event was more complicated and would require more involvement than he had thought. He asked that Ms. Bogle, Chair of the Education Committee, review the information and serve as contact person. Mr. Henderson stated that as former Chair of the Education Committee he was unsure if this was a project that the DHRC wanted to become involved in. Mr. Roach questioned if Mr. Henderson had received a breakdown as to how $10,000 would be allocated. Responding, Mr. Henderson stated his belief that this would be TED’s fee for coming to host the event. Mr. Roach stated his understanding that TED was a global organization, but he felt it would be a lot for the DHRC to be solely responsible for finding sponsors. He noted that the Commission was still developing and there had been transitions in members, who were still trying to get to know each other. Mr. Roach shared his opinion that something of this magnitude should be tackled further down the line, since the DHRC was trying to develop their ideas and determine how to reach the community. He did not believe they should jump into the task of raising $10,000 before people know who the DHRC is, and Ms. Griffith agreed. Mr. Roach noted that $10,000 had not been mentioned when Dr. Young spoke to the DHRC previously.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 9 The Commission recommended deferring the idea of DHRC involvement in a TEDx talk until a later time when members were all comfortable with taking on the task of a $10,000 fundraiser. By consent agenda, Mr. Anderson moved for approval of the Committee’s recommendation, seconded by Mr. Neil and carried by a unanimous roll call vote. Communications Committee (Griffith) Ms. Griffith provided an update regarding the Community Involvement - Public Relations Initiative and the African American Festival. Old Business Community Involvement - Public Relations Initiative During the DHRC meeting of July 28, 2015, the former DHRC Chair, S. Renee Smith, suggested that, once the vacant seats on the Commission are filled, a group picture be taken of the DHRC at City Hall. She suggested creating awareness and a connection by sending this picture and a congratulatory note to various members of the community, saying that the DHRC was proud of them, with each of the Commissioners’ names and districts. She felt this could easily be done one (1) to three (3) times per week and would not be costly. Ms. Smith stated that she would defer this for the present until the other two (2) members are appointed and suggested that this system could be up and running by the end of September or October. During the Commission meeting of March 16, 2016, Ms. Griffith stated her belief that Ms. Bogle had volunteered to take pictures; however, Ms. Griffith felt that the DHRC picture should be a professional, clean-looking product. Responding, Ms. Bogle indicated that she had volunteered to take pictures at events where the DHRC participated, rather than the picture for the cards. Ms. Griffith questioned if the City has a photographer or if the DHRC should obtain one. Responding, Mrs. Stein explained that the Dover Police Department photographer had helped with City Council photos in the past and may be able to take pictures for the DHRC. Mr. Roach stated that he has two (2) very close friends who are photographers and would do this for free, and he offered to reach out to them. Ms. Griffith suggested that the photographer take individual pictures of Commissioners for the DHRC website, as well as a group picture, so that there would be uniform pictures on the website. Ms. Griffith indicated that the only costs involved in sending out notes would be paper stock for the cards, printing, and postage. She stated that, as Communications Committee Chair, she would look into paper, getting cards made up, mailing, and

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 10 making sure that all Commissioners sign the cards. In addition to the picture, she stated the need to look at the budget to pay for the card stock and postage. Mr. Roach stated that he would make sure to take the lead on having a photographer present at the next DHRC meeting. He suggested that Ms. Griffith come back with a specific figure for the cost of cards and postage, and members could decide how much money they wished to spend. Ms. Griffith questioned if members wanted to proceed with the cards. Mr. Roach felt that this was a good idea, noting that this would provide exposure for the Commission, and Ms. Griffith and Mr. Henderson concurred. Ms. Griffith felt that members should have at least 50 cards on hand, noting that the printer may have a minimum order requirement. Ms. Bogle suggested reaching out to the prison print shop since they sometimes do such projects at a reasonable price. The Commission recommended that members come to the next meeting in their uniform shirts prepared to take individual and group pictures. In-House Retreat Mr. Roach reminded members that the purpose of an in-house retreat would be to have a meeting specifically so that members could get to know each other to determine what different resources and ideas they may have and in which areas members have expertise. He reminded members that he had suggested waiting until two (2) new members were appointed so that it would not be necessary to do this again after their appointments. Mr. Roach reiterated his opinion that an in-house retreat should not be done until there was a full Commission, feeling that it would not serve a valid purpose if new people were added. The Commission recommended that the DHRC wait to hold an in-house retreat until the two (2) additional DHRC members are appointed. By consent agenda, Mr. Anderson moved for approval of the Committee’s recommendation, seconded by Mr. Neil and carried by a unanimous roll call vote. DHRC Vacancies (First and Fourth Districts) Members were advised that there were currently two (2) vacancies on the Commission. Ms. Griffith indicated that an acquaintance of hers, Ms. Jenifer Vaughn, had applied for the vacancy in the First District. Mr. Roach offered to submit the name of a candidate for the DHRC Representative for the Fourth District to Mr. Henderson or to the City Clerk by Friday, March 18, 2016 and suggested that Chairman Henderson reach out to City Council

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 11 to indicate the DHRC’s desire to come as close as possible to having a full Commission by the next meeting. Responding to Mr. Henderson, Ms. Bogle indicated that she could coordinate with the City to obtain polo shirts for new DHRC members and have them embroidered at Dover High School, noting that this was a simple process. DHRC Logo During the Regular City Council meeting of February 22, 2016, members approved the Commission’s recommendation that Dover High School students be asked to create a logo for the DHRC in exchange for a $50 gift certificate. During the DHRC meeting of March 16, 2016, Mr. Roach advised members that he has a good relationship with Dover High School. He noted that members had discussed soliciting a donation rather than using money from the budget for the gift certificate. Mr. Roach indicated that he did not mind donating $50 cash personally, and Mrs. Griffith suggested that all members could contribute money. Mr. Roach stated that he would reach out to the Dover High School art department or print shop to see if they could work on creating a logo and the winner could be given a cash prize. Due to time constraints, this item was deferred until the next meeting. African American Festival During the Regular City Council meeting of February 22, 2016, members approved the Commission’s recommendation that the DHRC Communications Committee work up a plan to recommend the DHRC’s presence at the African American Festival this year. During the DHRC meeting of March 16, 2016, Ms. Griffith stated her understanding that the Mayor and some of the members of City Council typically attend the annual African American Festival but do not have a table at the event. She felt that the DHRC should allocate $100 from the approximately $1,100 remaining in their budget to reserve a table at the Festival, noting the need to discuss what members want their mission to be at the event. Ms. Griffith indicated that the City may have some documents or other giveaways; however, she felt that the DHRC should come up with their own items to distribute and suggested that they could provide face painting or giveaways. She stated the importance of representing the districts and having a presence so that the community would know what the DHRC does and that they can count on the DHRC. Ms. Griffith suggested attending the Festival in shifts, since it would be a long, hot day, and allocating possibly $150 for the event. She felt that this may be an outreach effort that the DHRC would plan for each year. Ms. Bogle suggested partnering with a youth organization, such as the City of Dover Youth Advisory Committee or the Dover High School Honor Society, for the event if face painting was to be done.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 12 Mr. Roach concurred with the idea of reserving a table and suggested reaching out to separate entities that might not want to have a table and participating as a partnership; however, he also noted that the DHRC may want to establish themselves on their own. Ms. Griffith expressed her opinion that the DHRC members should establish themselves. She felt there was nothing wrong with having kids coming to help as a community service, but she felt the DHRC should be the focal point. Ms. Griffith advised members that someone at her workplace had reached out to former Councilman Reuben Salters, who organizes the African American Festival, and he had offered to pay for a table if funding was unavailable, asking that someone let him know this by June 1, 2016. Ms. Griffith felt that it would be wrong for Mr. Salters to pay for the DHRC’s participation and the Commission should pay for this out of their budget. Responding to Mr. Henderson, Ms. Bogle explained that the African American Festival is held on the last Saturday in June. Ms. Griffith stated the need to make the DHRC’s participation fun so that people would not pass them by, noting that participants would not want to just be given papers. Mr. Roach suggested that distributing free cold water might attract people and that wraps for the water bottles that identify the DHRC would help to get the Commission’s name out. Ms. Griffith suggested that perhaps water could be donated to the DHRC. She advised that legislators have water delivered weekly from Artisan and offered to ask some of the legislators for water. Ms. Bogle stated that she recently participated in an event where Wawa donated 10 cases, or 240 bottles, of water. She said that water can be obtained as a mini-grant through the Wawa website, where the applicant enters information and indicates the store where water will be picked up. Ms. Bogle stated that there is also another company in Dover that typically has no problem donating water. Ms. Griffith asked if Ms. Bogle could take care of this aspect of the event should members decide to proceed, and Ms. Bogle agreed. Mr. Roach felt that if the Commissioners wore their shirts and gave out water, this would be enough and that members should have a blanket, unified statement in terms of who the DHRC is and what they do, noting that members would be attending the event in shifts and would need to give out consistent information. Ms. Bogle suggested that perhaps a press release with pictures should come before this event.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 13 Mrs. Sadusky suggested that DHRC helium balloons might be an option. Responding, Ms. Griffith stated that it is possible to buy small helium tanks such as those used for birthday parties, or that this could possibly be donated. Ms. Sadusky suggested allocating more than $150 for the event, perhaps $175. The Commission recommended allocating $200 for the African American Festival from the DHRC budget. By consent agenda, Mr. Anderson moved for approval of the Committee’s recommendation, seconded by Mr. Neil and carried by a unanimous roll call vote. Mr. Henderson advised members that he had presented the 2015 Human Relations Commission Report to City Council on March 14, 2016. He indicated that Council seemed very pleased with what the Commission was doing. Mr. Henderson stated that he would ask Council President Slavin to come back to talk to the DHRC in the very near future since there were new members, noting that Mr. Slavin has great ideas. Mr. Roach requested that a more detailed update on the 2015 Human Relations Commission Report to Council be provided by Mr. Henderson at the next DHRC meeting, and Mr. Henderson concurred. Mrs. Sadusky noted that some of her teenaged children are very passionate about the racism that they sometimes see in the school, and she questioned if some kind of youth discussion group could be held to bring kids together and give them an opportunity to talk about their experiences. Ms. Griffith suggested that some kind of workshop could be held in this regard. Mr. Henderson stated that this could be looked into for a future event, expressing his opinion that the youth could benefit from watching the “Cracking the Code” movie mentioned previously. Responding to Mr. Roach, Mrs. Sadusky stated that her thought was that the DHRC could host something similar to a forum. Mr. Roach suggested including an item titled New Ideas for Community Engagement to the next DHRC meeting agenda. He felt that Mrs. Sadusky’s idea was a good one, noting that adults and Council are asked for ideas, but the youth are the most valuable resource because this will be their City. Mr. Henderson indicated that this could also fall under the Education Committee. Ms. Bogle questioned if anyone had done a community needs assessment and if the DHRC had access to this.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 14 Mr. Roach noted that everyone had their own ideas but expressed the desire not to stray away from what the DHRC is supposed to be, noting his belief that new ideas for reaching out would be the first step. He believed that before identifying the issues that pertain to human relations, it is necessary to have a relationship with those in the City. Mr. Roach felt that the Commission was moving in the right direction in being recognized and getting to know people, and could then move in a direction to reach something tangible. The Commission recommended that, by the next DHRC meeting, all members come up with a new idea in regard to a forum, task, or challenge for the community that they would like to see the DHRC undertake. By consent agenda, Mr. Anderson moved for approval of the Committee’s recommendation, seconded by Mr. Neil and carried by a unanimous roll call vote. By consent agenda, Mr. Anderson moved for acceptance of the Dover Human Relations Commission Report, seconded by Mr. Neil and carried by a unanimous roll call vote. COUNCIL COMMITTEE OF THE WHOLE REPORT - APRIL 12, 2016 The Council Committee of the Whole met on April 12, 2016 with Council President Slavin presiding. Review of FY 2017 Preliminary Budget and Capital Investment Plan (CIP) Council President Slavin advised those present that this two (2) hour meeting would likely lead to up to 15 or more hours of budget hearings between now and the end of May. He indicated that consideration of the FY 2017 budget would take place a little earlier in the budget season and extend a little later in the year than usual because the City would wait to see what occurs with some of the State’s issues before adopting the final budget. Mr. Slavin reminded members that last year’s budget was very challenging and the FY 17 budget, although perhaps not as daunting, would be challenging nonetheless. Mr. Scott Koenig, City Manager, concurred that last year had been a very difficult budget year and that Council had been asked to do some heavy lifting and approve a large property tax increase of approximately 19.9 %. Council had directed Staff not to come back for a tax increase for FY 17 and to look at mid-year fee adjustments for rental and other permits that had not been adjusted in recent years. Mr. Koenig stated that the Electric Fund budget was the least difficult of the City’s three (3) funds to balance and was seeing a downward trend in power costs over the long term. With respect to the Electric Fund, the City was getting up to authorized staffing levels and delivering on capital and operational projects. Mr. Koenig explained that the five (5) year forecast for the Water/Wastewater Fund was a little more challenging. Staff proposed to keep rates the same in the budget for this fund. Mr. Koenig advised that there had been discussion regarding an inclining block, which was on the radar screen for water and sewer rates, but staff did not believe that this would have to be enacted in the FY 17 budget. Mr. Koenig indicated that the General Fund budget had the

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 15 most pressure and concerns, with a gap in policy compliance of a little more than $1M. He stated that ways to close this gap would be discussed in the coming months prior to the budget discussions. Mr. Koenig reviewed a memorandum regarding FY 2016/2017 Preliminary Budget & Capital lnvestments Plans (5 Years), dated April 6, 2016. He advised that there had been a fair rebound of real estate property transfer taxes and that staff was keeping an eye on State revenues. Mr. Koenig reminded members that, when the budget year began, Staff had been asked to have an alternate plan to reflect the potential for no State revenue transfers; however, current indicators from the Delaware Department of Transportation (DelDOT) budget reflected that Municipal Street Aid and Community Transportation Funds (CTF) would be funded at the current level. Additionally, discussions related to Payment in Lieu of Taxes (PILOT) in draft bills indicated that PILOT may be more favorable to the City in FY 17, partly due to changes in the allocation formula with existing funds. He advised that proposed changes to State law regarding PILOT would add provisions for cities with a minimum population of 25,000, and add funding to the total pot available, which would indicate that the City may receive additional PILOT funds; however, this was yet to be seen. Mr. Koenig noted that the State had increased the City’s health insurance premiums by 7.7% and that the workforce shares this cost, with some employees sharing at an 85/15 rate and newer employees at 80/20. He expressed his belief that health care costs had increased by approximately 21%, compared to 15% last year. Mr. Koenig explained that there was an increase of 16.5% in payroll in the General Fund and 3.4% in the Water/Wastewater Fund related to the Civilian Pension Fund, but a 31.1% decrease in this expense in the Electric Fund based on biennial actuarial calculations. Percentages for Other Post-Employment Benefits (OPEB), which had been a concern, decreased across all funds, as follows: General Fund, 2.2%; Water/Wastewater, 4.6%; and Electric, 5.4%. Mr. Koenig informed members that new debt service was proposed for a couple of projects in the General Fund, one (1) of which was the replacement of the City’s Enterprise Resource Planning System in hopes of fully integrating finances across the City, including the Police Department and other satellite locations. This would allow for a true electronic dashboard reflecting all revenue and expense classifications across the City, including grant management and other types of revenue that are currently not easily accounted for. Mr. Koenig indicated that abandonment of the old PW2 Site/Tar Ditch was also proposed for debt service funding. This stormwater improvement would alleviate flooding at the Water Street/Governors Avenue intersection across from Bayhealth Medical Center down to old PW2, at an estimated cost of $7.6M for construction. He stated that Staff would seek to use City funds and also to partner with the State and other interested entities for construction. Mr. Koenig noted that there would also be debt service related to water/wastewater projects using the State revolving fund. Several water/wastewater projects would be bundled together to fund construction of new pump stations and similar projects over

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 16 approximately a three (3) year period, as well as expansion of the water treatment plant. In reviewing Financial Policy Compliance, Mr. Koenig noted that there was a gap in the General Fund of approximately $1.2M. The Water/Wastewater and Electric Funds were both positive in terms of compliance; however, the five (5) year projection for the Water/Wastewater Fund indicated that additional funding through rates may be required. Referring to the FY 2017 Preliminary Annual Operating Budget - Dover Delaware - General Fund Cash Receipt Summary, Mr. Koenig indicated that a beginning of the year adjustment would be made to the beginning balance after Mrs. Donna Mitchell, Controller/Treasurer, receives audit results. The projected beginning balance in the General Fund for FY 17 was approximately $4.45M, which was approximately 11.9% above the FY 16 numbers. Mr. Koenig informed members that some revenues were slightly increased. He expressed concern about Kent County book reimbursement, which reflected a decrease of approximately $50,000; however, he explained that those numbers were balancing out by other revenues coming from business licenses, permits, etc. Mr. Koenig stated that property tax revenues were estimated at $12.932M, noting that staff had added tax ratables to the profiles for this year. He advised that recreation revenue was projected to increase slightly and franchise fees were projected to be flat. No sanitation rate changes were projected at this point and sanitation fees were trending slightly lower, with a reduction of approximately $42,000. Mr. Koenig indicated that court fees and investment income were increasing slightly. He stated that there was not much change in interfund receipts and transfers. Mr. Koenig explained that although there was a slight change in police-related extra duty, this is a pass through number and when expenses are considered, there would be an overall cost reduction. With respect to transfer tax, Mr. Koenig stated that this revenue was trending up. The initial FY 16 budget projected transfer taxes at $1.34M and the current revised projection was $1.986M; however, staff expected this amount would be exceeded. Transfer taxes were tagged at $1.54M for FY 17; however, Mr. Koenig stated that this revenue stream is approached with caution. He noted that during high development years from 2006-2008, transfer taxes were as high as $3.4M or $3.6M; however, when the bottom fell out of the real estate market, these revenues pulled back to approximately $1M. Mr. Koenig indicated that this reversal tracked very closely with what was experienced in the General Fund. He cautioned members to be very mindful of this in developing the FY 17 budget, and did not recommend increasing to estimates of $1.9M or $2M for this revenue stream. Mr. Koenig reiterated that municipal street aid was expected to remain flat for the current year, and it was hoped that this number would track at approximately $673,000. He indicated that transfers were proposed from the Water/Wastewater Fund and the Electric Fund, explaining that this was a return on the City’s investment in the utilities and would help to keep property taxes down. Transfers amounted to $875,000 from the Water/Wastewater Fund and $10M from the Electric Fund, which

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 17 were the same as last year. Total revenues proposed for the General Fund for FY 17 were $42.37M. Mr. Koenig reviewed some of the changes in departmental expenses in the General Fund Expense Summary. He noted that there was an increase of 6.1% in the City Clerk’s Office, a fair change in Library expenses, and a large change in total dollars of approximately $1.2M, or 8%, in the Police Department. Mr. Koenig advised that the large increase in the Streets Division was predominantly related to Municipal Separate Storm Sewer System (MS4) permit compliance and grass mowing and ditch cleaning on land owned by the City at the Garrison Oak Technical Park. He stated that there was a slight reduction of approximately $91,000 in Sanitation due to an expected reduction in landfill rates. Facilities Management expenses were also reduced because the head count in that division was declining as a result of the privatization of custodial services following the retirement of several employees. Mr. Koenig noted that total departmental spending was increased by approximately $2.2M or 6.8%. Referring to Other Expenditures, he advised that debt service was being adjusted upwards; a contribution of $70,000 was proposed to the Downtown Dover Partnership (DDP), which would keep the City’s transfer to the DDP flat for FY 17; and insurance expenses and retiree health care were increased. Mr. Koenig stated that a total balance in expenditures of approximately $46,820,000 was proposed. He indicated when expected revenues are offset with the proposed expenses, the City would be in the hole by approximately$117,000; however, to keep the budget in compliance with policy, approximately $1M would have to be added. If revenues are not adjusted, there would be a need to shave the General Fund by approximately $1.1M to balance the budget. Mr. Hutchison noted that the State had been discussing real estate transfer tax and questioned if Mr. Koenig had heard whether the State would be taking some of these funds. Responding, Mr. Koenig stated that the City met with legislators early in the fiscal year, when it seemed there would be a lot of discussion regarding real estate property transfer tax; however, he had not heard much more about this since August 2015. He indicated that this was the State revenue stream that he was most concerned about. Mr. Koenig explained that transfer tax is now split 50/50, with 1.5% going to the State and 1.5% going to the City. Last year 2.0% was proposed to go to the State and 1% to the City, which would result in a revenue loss of 17% or 18%. Mr. Koenig had not heard that the proposed bill had been reintroduced, expressing his belief that legislators were waiting for final Delaware Economic and Financial Advisory Council (DEFAC) numbers to be released. He stated that this is one (1) of the largest revenue streams that the City receives from the State, and the proposal discussed last year was significant and would result in a reduction to the City of several hundred thousand dollars. Mr. Sudler questioned the best way to shave the $1M needed to balance the budget. Responding, Mr. Koenig stated that he thought that there would be discussions at all levels. He indicated the possibility of going back to departments and asking for only what is necessary, or making an adjustment to the General Fund capital plan which

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 18 may involve deferring vehicles or reducing the street program. Mr. Koenig informed members that requests from citizens regarding services were continuing to escalate. He expressed the possibility of pulling back some of the MS4 funds for ditch maintenance; however, he stated the importance of coming into compliance with this permit, so this would not be first on the list. Mr. Koenig indicated that expectations in the Sanitation budget for tonnages going to the landfill would be reviewed, as would vehicles, open positions, debt service, and all types of issuances. He stated that everything that would maintain current levels of service would be reviewed; however, it may be necessary to discuss cutting levels of service. Mr. Sudler asked if there was a process for prioritizing residents’ requests for services and determining those that would be met in a given year. Responding, Mr. Koenig stated that, in his experience, residents typically express concern about the level of service at their house rather than elsewhere. He noted that staff takes into consideration feedback from those who come to speak at the budget discussions, Council, and social media; however, a majority of the requests received are for additional or enhanced services at the same or lower cost. Mr. Slavin asked if a 2.5% adjustment of expenses and revenues was needed to come into policy compliance, and Mr. Koenig expressed his belief that this was correct. Mayor Christiansen reminded members that one (1) of the functions of the Office of the Mayor was to work closely with legislators. He stated that the current formula for the PILOT program was being worked on and had been discussed with those in New Castle County who were tired of giving money to the City of Wilmington. Mayor Christiansen indicated that other municipalities with State of Delaware properties were being looked at. He was very comfortable that this matter would move forward in the legislature and that the current realty transfer tax formula would remain intact unless DEFAC reports drastic funding problems. Mayor Christiansen advised that he and the City’s standing committee chairs were planning an update and lunch with members of the Kent County legislative delegation, along with key members of New Castle and Sussex Counties, to ensure that the well-being of the City of Dover and other municipalities in the State would be looked after. Mayor Christiansen felt that those in Legislative Hall would be amenable to suggestions and recommendations developed since this was the middle of an election year. He indicated that he would keep Council and staff apprised regarding anything that might affect funds from the State, including DelDOT funding, community transportation funds, and municipal street aid. Mr. Hare noted that some City positions that were vacant last year were still vacant. He suggested that if a position remains vacant for six (6) months, it should be vetted through the Legislative, Finance, and Administration Committee and Council before it is filled so that the need for the position can be justified. Mr. Hare did not want it to become a habit for funds for such positions to be used elsewhere, noting that it might be possible to eliminate them.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 19 Mr. Hare asked if an inventory of vehicles and equipment would be provided, stating that supervisors should be able to adjust schedules to keep vehicles to a minimum. Responding, Mrs. Mitchell stated that the concept of sharing vehicles was discussed last year in relation to cost-savings ideas; however, staff had not yet gotten into that process. Mr. Hare indicated that he would like to see an inventory of all City vehicles and equipment by department to see if there were ways to share before making purchases. In regard to vacant positions, Mr. Koenig stated that the City had been actively recruiting for almost every vacant position. He expressed his preference not to have to come back to Council every time a position is open for six (6) months, noting that he had been hired to manage the budget. Mr. Koenig advised members that there are unique instances in every department. For example, he explained that, Mr. Harry Maloney, Electric Director, was in the process of changing the Electric Department, hiring staff, and reorganizing positions as new people come into the organization. Mr. Koenig felt that making sure the appropriate people are in the right place is a staff/manager level decision, and he noted that some positions would be vacant for more than six (6) months. He indicated that coming back to Council to simply ask if he can fill a position would add an additional layer and burden of paperwork. Mr. Koenig felt that the budget could be managed as presented. He noted that staff had been working on at least one (1) position in the Public Works Department that had not yet been posted, explaining that, in some cases, positions in this Department had been through two (2) or three (3) postings due to employees quitting after being hired. Mr. Koenig pointed out that each department is unique and expressed the desire for Council to authorize the positions and allow staff to execute the budget based on that. Mr. Hare expressed his opinion that if someone was not hired within six (6) months of a vacancy, the position was not that important. He reiterated his view that positions that remain vacant for more than six (6) months should be vetted. Mr. Hosfelt stated that this matter was previously discussed last fall and Ms. Kim Hawkins, Human Resources Director, had prepared a report for him in this regard. He questioned if this report could be updated and given to all members of Council to provide a better understanding of recruitment, and Mr. Koenig stated that this could be done. Responding to Mr. Hosfelt as to whether employees were quitting due to the pay scale, benefits, or other reasons, Mr. Koenig explained that some employees find the job different from what they expected, others have left during the review period because they were not a good fit for the organization, and some have transferred to another department. He noted that openings can cause a cascade effect in the organization that affects four (4) or five (5) positions. Mr. Koenig advised that there have been increasing discussions and complaints about the closure of the defined benefit pension plan, and some employees feel that the defined contribution plan is a retirement savings plan that is not the same as a defined benefit plan. He noted that

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 20 this is a matter of perspective since the City’s defined contribution plan is better than some private sector companies that do not offer anything. Mr. Koenig stated that some employees had left or retired because they were unhappy that the City was about to require health care cost sharing, and this was still rippling through the organization three (3) or four (4) years later. He explained that there had been recent instances when a selection was made for a position and the candidate asked for $3 or $4 per hour more than what was offered, and staff did not have the ability to do this. He noted that in some cases union negotiations had taken away a tool that private sector companies might be able to use since a union did not want the City to leapfrog over staff that had been working with the City for a while. The City had wanted to hire employees at levels ranging from A to E; however, the union wanted to use only levels A to C. Mr. Koenig expressed additional concerns about changes in the private marketplace that were affecting employees, especially new, younger employees who may be covered by their parents for health insurance and for whom the benefit package may not register. He advised members that the hourly rate is what matters to these employees, but health insurance is a major part of the City’s total cost for employment, and the City cannot convert the value of health care to an hourly rate addition under any of the City’s union contracts because this is not an acceptable way to hire. Mr. Koenig noted that in some cases municipalities not far from Dover are hiring at $2 an hour higher, and the City has challenges in the workforce and in recruitment. Mr. Sudler questioned if interim employees are selected to fill positions when employees resign and how soon staff solicits, considers, and interviews prospective employees. Responding, Mr. Koenig stated this would depend on the position and the part of the organization involved. In some cases a position’s duties are absorbed by other employees in the office; however, there are interim appointments at the department head level because someone must be the overall authority in the department. In regard to recruitment, Mr. Koenig explained that once an employee resigns it is up to the department to fill out a written request to recruit and indicate that this is a position that is needed and not a placeholder. This is submitted to the City Manager for review and forwarded to the Human Resources Department. The sooner the department head submits paperwork, the sooner they get into the queue for advertising. Some departments focus a lot of time and attention immediately when someone resigns; others take a more structured approach. Mr. Koenig indicated that there was not an across-the-board answer to Mr. Sudler’s question, because department heads, in some cases, control a portion of the equation to get everything in, have interviews scheduled, and make selections. Mr. Sudler asked if it would be beneficial for City Council to designate a time frame across the board for all departments to solicit for positions. Responding, Mr. Koenig expressed his belief that this was not necessary.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 21 Mr. Hare concurred that a designated time frame was not necessary; however, he felt that if a department head loses an individual and goes half a year before considering hiring someone, they may not be the right person to be a department head in a key position. He believed they should come before the Legislative, Finance, and Administration Committee to explain why it took so long, noting that it does not take half a year to find a replacement in the business sector. In response to Mayor Christiansen regarding venues where City employees are solicited, Mr. Koenig indicated that very few positions are posted in the newspaper anymore; however, they are posted on the City’s website and other social media outlets, and many are shared by City employees. Positions are posted on all bulletin boards, and staff shares information with Delaware Technical and Community College and has participated in job fairs there. Mr. Koenig indicated that the City had held its own job fairs and, for some of the more technical positions, staff had advertised in national journals. It was Mr. Koenig’s belief that related links are also sent to Delaware State University. The number of applications received can range from four (4) or five (5) to several hundred, depending on the time of year or the market. Mr. Koenig stated that a wide range of outlets is used for jobs, and it may be a matter of whether people want to select the City as an employer. He noted that it took quite a while to hire a number of technical jobs, such as engineering staff, and to fill the Electric Director position. Mr. Koenig informed members that the services of a recruiter were engaged for the Electric Director position and this did not work; however, staff received contacts from people in the industry that had experience in this type of work. Mr. Koenig noted that advertising for positions in trade journals, etc., can cost several thousand dollars. He assured members that staff was always hoping to expand when reaching out to job applicants because each department head wants to hire the best person available for their opening. Mr. Anderson, noting that electric costs had decreased, questioned the reason for the slight increase in funding for street lights and if these funds would be used for retooling or replacing street lights. Responding, Mr. Koenig expressed his belief that the street light payment identified in the General Fund was for electricity and maintenance related to those lights, stating that there was no proposed change to the electric rate for FY 17. He indicated that lights were being added and the system was getting bigger. In response to Mr. Anderson as to whether the City continued to use temporary help, Mr. Koenig stated that the City uses temporary help in the Grounds and Sanitation Divisions. He indicated that there were difficulties with temporary help, noting that these individuals are required to pass background checks, are not allowed to drive because of CDL issues, and are restricted to pure labor functions such as cutting grass, sanitation, and work in the Streets Division, such as collection and assisting the sign painter. To Mr. Koenig’s knowledge, temporary help had not been used recently in administration.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 22 Mr. Koenig reviewed the Water/Wastewater Fund Summary, noting that there had been adjustments to beginning balances. Under base reviews for FY 17, he indicated that staff was still assessing the impact of revenues from Calpine. The total revenue for Water/Wastewater in FY 16 was slightly over $15M and was projected at $15.8M for FY 17. Mr. Koenig pointed out slight growth in wastewater revenues due to new connections. The total increase in revenue would be approximately $89,500 for water/wastewater. Mr. Koenig indicated that expenses in the Water/Wastewater Fund included transfers, the cost of engineering, the cost of running the plant, etc. Wholesale changes were not requested in the capital plan, and staff was trying to stick with the general authorizations that Council had expected over the five (5) year period. Mr. Koenig informed members that debt service would be issued in the Water/Wastewater Fund, noting that a treatment upgrade was planned for the Long Point Road Treatment Plant and design was almost complete. Construction was currently estimated at approximately $2.4M and the State revolving fund would be used for this. The State revolving fund would also be used for pump station replacement and upgrade projects. Mr. Koenig felt that staff was having success in working their way through capital project authorizations and starting to catch up with the expenditures that Council had authorized in years past. The backlog of projects had been decreasing over the last couple of years, although there had been times when it had been necessary to come before Council to modify project budgets due to estimates that had been incorrect and bids that had come in high. In some cases, projects had been finished under budget and project budgets were transferred. Mr. Koenig stated that staff had focused on modifying the capital plan to stay within the financial authorization of Council. He advised that all wastewater is sent to Kent County for treatment, and this is a direct pass-through cost. Mr. Hutchison questioned how the financial numbers from Calpine compared to projections, based on the short period of time that Calpine had been in operation. Responding, Mr. Koenig stated there was discussion early on that revenues were projected in the $1.6M range; however, this year’s revenues for water were only projected at approximately $700,000 to $800,000 for the Garrison Energy Center. He noted that it had been less than one (1) full year since construction finished and there was a major outage in the fall while things were being finalized. Mr. Koenig indicated that the City was seeing the ramp-up of this facility moving into the springtime, and he felt it would be another six (6) months before there would be a true gauge of the final numbers. He indicated that water revenues seemed to be slightly less than projected but the sewer revenues slightly more, noting that Calpine may have been referring to both water and sewer when they provided the $1.6M figure. Mr. Koenig informed members that Calpine is the top water user in the system and as their run profile starts to solidify, the true revenue profile will be seen. In response to Mr. Hare’s request for clarification regarding Intrafund Service Fees and Bank and Credit Card Service Fees, Mr. Koenig stated that the City’s customers

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 23 use credit cards to pay bills at Customer Service, but the City absorbs the transaction fees, which are allocated to the different funds. Mr. Hare questioned if the City should consider charging an additional 1.5% or 2% for those using credit cards to pay, as many other companies do. Responding, Mr. Koenig stated that staff had gone back and forth on that internally; however, he did not agree with charging customers an additional fee, noting that a transaction cost is not paid for using a debit card at stores like Walmart. He expressed the desire to encourage people to pay their bills and not avoid doing so because of the credit card fee. Mr. Koenig felt that, with a perfect rate design, the City would assume that everyone is using credit and this would be included in the rate; however, this was not the case currently. He advised that payment procedures are slightly different from department to department, noting that a customer cannot walk up and swipe a card to pay a bill in Customer Service but must go off to the side and make a phone transaction, and the system is not where he would like it to be. Those who pay for a building permit in the Planning Department can swipe a credit card. In regard to Intrafund Service Fees, Mrs. Mitchell informed members that this is where administrative costs for the City Manager’s Office, City Council, City Clerk, Finance, Human Resources, Information Technology, Facilities, Fleet, and Warehouse are allocated to all three (3) funds. This is calculated using formulas based on assets, personnel costs for Human Resources, and the head count. Mrs. Mitchell indicated that Water/Wastewater Fund assets had climbed since more projects had been completed, which drove their allocation percentage higher. The Electric Fund’s percentage of those costs remained stable. Mr. Slavin clarified that this was the business side cost of running the utility. He cautioned members that when budget hearings are held in May, cuts are sometimes offered as a way of saving money in the General Fund; however, 100% of that cost is not always saved in the General Fund because costs are sometimes allocated across the three (3) different funds. Mr. Sudler asked how long the City had been allocating for Intrafund Services. Responding, Mrs. Mitchell stated that this had been done since the 1980s. Mr. Neil stated his presumption that credit card costs had been negotiated at the lowest possible level. He noted that volume retailers can get a lower rate and questioned if the City does that as well. Responding, Mrs. Mitchell stated that credit card and merchant services are bid out when the City bids out bank services and staff looks for the lowest rates. Mr. Koenig pointed out, in regard to potential future rate changes for the water and sewer utility, that when talking to the State water is a scarce resource. Staff spends a lot of time and energy trying to plan the City’s water resources and make sure the City has the permits to pump out as much water as needed from the system. The City is monitored closely by Public Health regarding the quality of water and must pass

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 24 inspections and testing. Mr. Koenig informed members that as allocation permits have come up for renewal, modifying these permits has been discussed. In the past, there may have been eight (8) wells that were all at 1,000 gallons, but if a well can pump only 680 gallons, that permit is adjusted down to 680 gallons. Mr. Koenig indicated that staff had been doing a lot of permit management and discussion with the State about the incentive to value water as a resource. He explained that when water is cheap, it is not valued as much as when it is expensive. When discussing allocation expansion, the State looks at rate design, whether people are being encouraged to save water, and if there is an active promotion of low-flow faucets and fixtures. Mr. Koenig stated that when considering how to develop the City’s next water resource, discussion about rates will become part of the equation. When the City applies for the State revolving fund, they look at the City’s financial abilities and the bond market. Mr. Koenig pointed out that some private sector providers have a tiered system where more water being used results in a higher rate being paid. He felt that future rate design for the water and sewer utility would likely mirror that type of philosophy. Mr. Koenig stated that this discussion was a precursor to consideration of the next rate adjustment and advised members that they would see a proposal from his office regarding a block rate design. Mr. Sudler asked if the City has incentive programs for residents to save water. Responding, Mr. Koenig stated that staff does not go in and tell people to use low- flush toilets; however, new plumbing codes for new construction and remodeling have requirements for things such as low-flush and low-flow faucets. Behavior changes are also occurring as part of the sales market. Mr. Koenig felt that the price of water in the City of Dover, at $3 per thousand gallons, was not driving people to be more efficient in water use; however, such changes were being driven by the desire to save resources or to change fixtures. In response to Mr. Sudler regarding the plumbing code used by the City, Mrs. Ann Marie Townshend, Director of Planning and Community Development, stated that the City had adopted the 2009 code but the State had adopted the 2015 code and requires the City to use what they adopt; therefore, the City had been using the 2015 code. Mrs. Townshend explained that the International Code Council (ICC) comes out with updated codes every three (3) years. Since adopting new codes every three (3) years would be a challenge administratively, in training code officials, and in working with the development community, the City had typically done this every six (6) years. Mrs. Townshend indicated that there had been discussion about adopting the 2012 code, which is used by Kent County; however, the 2015 code had now been issued. She stated that the City would either adopt the 2015 code, since they were required to use the plumbing and energy codes for 2015 by the State, or would wait until 2018. Responding to Mr. Sudler, Mrs. Townshend advised that the 2009 codes were adopted by reference in Chapter 22 of the City of Dover Municipal Code.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 25 In response to Ms. Maucher regarding when the last cost of service rate design was performed, Mr. Koenig stated his belief that the City had never had a true cost of service rate design done by a consultant for the water/wastewater utility. He advised that the utility’s rate design was very rudimentary. Mr. Koenig stated that it took approximately four (4) or five (5) attempts to get a customer charge for the water rate on the water portion of the bill. In the future, when discussing the inclining block, Mr. Koenig felt that the City may want to do a cost of service rate design, noting that large customers have a substantial impact on the system that is probably not, from a rate design standpoint, being allocated and reported through those types of standards. Mr. Koenig stated that the electric cost of service is very detailed and involves a lot of accounting and discussion; however, in regard to water, staff looks at how much is pumped into the system, the losses, and the capital plan and then develops a rate. Everyone is treated equally; however, Mr. Koenig felt that there would be a need to look at the cost of service to get a fair allocation of costs as the City moves toward a more modern utility. In regard to expanding City water and water rights in new wells and aquifers, Mr. Anderson asked if there were any potential cost increases in the future when drilling in deeper aquifers. Responding, Mr. Koenig stated that there would be cost increases without question. He explained that the City draws from three (3) aquifers: 1) the Columbia, which is the unconfined aquifer on the east side of the City; 2) the Cheswold, which is a middle-depth confined aquifer; and 3) the Piney Point, which is a deep, confined aquifer. Mr. Koenig advised that the State has not allowed very many, if any, new wells in Piney Point because they are concerned about mining the water out of this aquifer; therefore, Piney Point is the most difficult to get a new well in. He explained that the City was able to drill a new well at Piney Point because two (2) old permits were given up, the permit location and allocation were moved to obtain authorization to go into the aquifer, and there were no additional allocations of water for this. Mr. Koenig informed members that there seemed to be some room for expansion in the Cheswold aquifer and a new well was being proposed in the capital plan for this. He indicated that staff originally planned to go into the very deep Frederica aquifer; however, after working with the State, it appeared that the City may be able to get into the Cheswold aquifer and get the appropriate allocation at a mid-range depth, which would significantly reduce the cost of the well. Otherwise, it would be necessary to go deeper than Piney Point to get water, which could lead to additional costs. Mr. Koenig indicated that a permit was issued in the early 1990s at the Long Point treatment plant. He noted that this area was under heavy influence of agricultural wells now and the City’s long-term allocation there was shrinking. Mr. Koenig informed members that as much as 5M gallons were expected to run through this plant when it was originally designed. The plant redesign 27 years later was in the 3M gallon range, with the potential to expand to up to 4M. Mr. Koenig stated that in the 20 plus years that the plant had been in operation, it had probably never pulled

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 26 even 3M gallons a day from the aquifer. There was room for growth from the City’s system in the aquifer; however, in the overall umbrella of the City, the City would be pulling from the confined aquifers, and the costs would be significant when the City has to drill new wells. To Mr. Koenig’s recollection, the cost was approximately $1.1M for the Piney Point well that produced approximately 600 to 700 gallons per minute. Mr. Anderson questioned what would happen if there were expansions at the Garrison Oak Technology Park, such as for Calpine. Responding, Mr. Koenig stated that the engineering calculations for Calpine coming online indicated that the City would need a new tower immediately; however, Calpine had now been running for nine (9) months. The tower was nearly ready to go into service; however, the system went through the summer and the end of the last season without the need for the tower to be online. Mr. Koenig explained that when engineering calculations are run for margins of safety and safe allocations, it is assumed that a major facility is offline, as if there were a major fire going on, which creates a handicap. He advised that the system was currently designed so that Block 1 would not affect allocation. Mr. Koenig stated that if Calpine moves forward with Block 2, the City would look at the run profile of Block 1, as well the expected demand from a second block. He noted that estimates for a second block had ranged from 50MW to 520MW, and staff had not been able to get a definite answer from Calpine on this. Mr. Koenig indicated there had been changes in the City’s Code since Block 1 was authorized; therefore, if Calpine proceeds with Block 2, there would be no cap on their impact fees. Mr. Koenig stated his belief that the impact fee for water and sewer for Block 1 would be more than $15M; therefore, Calpine would have to make a significant capital transfer to the City for Block 2 under the current ordinance. This money would have to be used to offset an investment for more supply. Mr. Koenig stated that the question, from an engineering standpoint, was whether the City could accommodate Calpine if they wanted to proceed today. He indicated that he did not have this answer tonight; however, the City is ready for those types of things to be introduced. Responding to Mr. Neil, Mr. Koenig stated that City encompasses approximately 24 square miles; however, the City’s electric service territory granted by the State is approximately 74 square miles, which is almost three (3) times the size of the City. In regard to the water service territory, Mr. Koenig estimated that 80% to 90% of the customers outside City limits are residential. There are subdivisions outside the City that receive City water and in some cases, City sewer, such as Rodney Village, Kent Acres, St. Jones Commons, and Wolfe Creek. Service areas extend beyond the City perhaps five (5) to 15 square miles. Some customers outside the City have electric, water, and sewer; some electric or water only; some have other combinations. In response to Mr. Hutchison regarding the volume of calls regarding brown water with increased water usage on the east side and the flushing of pipes, Mr. Koenig stated that there were approximately 10-20 complaints reflected on a flushing report

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 27 last week, and he expressed his impression that the number of calls was down. He noted that there is a lot of water running through the east side of the system when Calpine is running and the system is self-cleaning in some cases. Mr. Koenig indicated that complaints had decreased from years past. Responding to Ms. Maucher regarding the rate differential for in-City versus out-of- City customers, Mr. Koenig stated his belief that this was spelled out in the Code and the differential was 50%. The in-City rate is $3.00 for 1,000 gallons, compared to $4.50 per 1,000 gallons outside the City. Expressing his opinion that $3 per 1,000 gallons seemed like a very good rate, Mr. Hare questioned how often the City checks its water rates. Responding, Mr. Koenig stated that this is an excellent rate from the customer standpoint. He explained that the Finance Department had solicited rates from a number of municipalities, and a comparison of public and private providers would be provided during the upcoming budget hearings. In response to Mr. Anderson, Mr. Koenig confirmed that the City’s rates are so low that Tidewater Utilities buys water from the City and has three (3) active interconnections: 1) at Denney’s and Kenton Roads; 2) at Denney’s Road and Carlisle Village, and 3) running south on State Street, which feeds mobile home parks and other areas. Mr. Koenig explained that Tidewater has several of the top 10 meters that produce for the City of Dover. They buy at the in-City rate at $3 per 1,000 gallons and sell it in accordance with their tariff, which Mr. Koenig believed exceeds $8 per 1,000 gallons. In regard to wastewater, Mr. Anderson noted that the City had put a lot of money into reducing infiltration over the last five (5) years and asked if a benefit had been received from this. Responding, Mr. Koenig stated that there had been a benefit. He noted that the Public Works Department had submitted applications for the return of impact fee credits related to Inflow and Infiltration (I & I) and he indicated that he would bring this report to the budget hearings. Mr. Koenig explained that I & I is outside rainwater and groundwater penetrating into the sanitary sewer system. He stated that this is a burden on the system that the City, as a utility, is paying extra to treat. Mr. Slavin noted that the City sends rainwater to Kent County, who cleans it, and the City is charged for this. Responding to Mr. Anderson as to whether the City had been able to reduce the amount that the City had been investing, Mr. Koenig indicated that he did not have those numbers with him but would bring the data to the budget hearings. In regard to credit cards and their effect on all three (3) funds, Mrs. Mitchell advised members that in the past, all bank and credit card fees were netted against interest income; however, staff had made an accounting change. For example, referring to

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 28 the Water/Wastewater Fund Summary, Lines 12-13, regarding water and wastewater interest, she explained that the figures for 2014/15 Actual were negative because those fees were netted against the interest. Referring to Line 31, Bank and Credit Card Fees, she explained that there was a zero balance, because staff did not have this information segregated at that time. Mrs. Mitchell stated that staff had since segregated the bank fees, so the interest earned increased in each of the funds. In regard to the Electric Revenue Fund Summary, Mr. Koenig informed members that the Electric Fund had slightly over $80M in revenue. He stated that the largest revenue was from Direct Sales to Customer, which was projected to increase slightly by $712,000 or 0.9% because a slight increase in the load profile was projected. Mr. Koenig reminded members that there had been a lot of conflict and uncertainty in the industry. There had been fairly large expansions of commercial customers, including the Edgewell/Energizer and Kraft Heinz facilities; however, the long-term load profile of the utility was expected to be relatively flat. He noted that the utility is under a lot of influence from people wanting to put in private solar and other measures that will affect the system. Mr. Koenig indicated that there was a very slight increase in direct sales to customers, which cascades down into utility tax revenue, and a slight increase in miscellaneous revenue. He noted that the transfer from the Rate Stabilization Fund would be decreased for FY 17. Total revenues associated with the proposed FY 17 budget would be roughly $81.3M; however, there was a very substantial beginning balance in revenues of approximately $93.9M, resulting in a total change of approximately $4.2M or an increase of approximately 4.7% from FY 16. In regard to expenses, Mr. Koenig informed members that the cost of power supply had been decreasing, and this trend was expected to be realized in FY 17, although staff was still working on related issues for FY 16. Mr. Koenig pointed out that PJM charges regarding transmission were going up substantially, noting that it seemed that money was being moved from one (1) bucket to another to adjust to how the system is charging the City for power from the grid. He stated that there were additional capacity charges. Mr. Koenig indicated that power plant operations were proposed to decrease slightly by approximately $217,000, and the total cost of power supply and generation was approximately $49.1M. Mr. Koenig pointed out that the transfer to Improvement & Extension (I & E) in the amount of $2.5M was to keep the City’s infrastructure up to date. There was a $10M transfer to the General Fund and transfers to the depreciation, future capacity and rate stabilization reserves, with transfers totaling approximately $15.25M. The total budget balance and expenses resulted in a positive balance of approximately $4.2M. Mr. Koenig, referring to Line 62, Exceeds (Remains) to Meet Requirement, indicated that the Electric Fund was over the policy requirements by approximately $5.15M. He advised that adjustments were needed to this and the other funds, noting that one (1) of the capital projects would influence the FY 17 budget and one (1) the FY 18 budget in the Electric Fund. Substation replacements were also being discussed in

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 29 the five (5) year plan, and whether cash would be paid or debt would be issued for these things. Mr. Koenig reiterated that the Electric Fund had a positive balance; however, this number would be refined moving forward as proposals related to the Electric Fund are made in the final budget discussions. Mr. Blakeman, referring to Line 13, Power Supply, of the Electric Revenue Fund Summary, noted that the cost of power supply was projected to decrease by $6.8M or approximately 29%, and asked if this was a one (1) year anomaly or was anticipated to be an ongoing trend, and if this was a fixed cost that is projected out. Responding, Mr. Koenig advised members that Mrs. Mitchell had indicated that these figures reflected the open hedge position as well as the purchase position, so this was why there was a large decrease in power supply but an increase in PJM transmission and fees. He stated that there is some influence in the hedge purchasing moving forward. Mr. Blakeman asked whether hedging was bringing the price down and if the City was still buying the same number of kilowatt hours. Responding, Mrs. Mitchell explained that this was not the case. She explained that there was unhedged energy since hedges were not 100% covered. The hedges are included in the power supply, but the PJM figures reflect buying off the market and are the offset to what the City has not hedged. Mrs. Mitchell stated that the City may be 100% hedged in the current year, but may be only 80% hedged in 2017, the out year. Mrs. Mitchell stated that the figures represented the hedges that are in place. The unhedged energy comes from the PJM; therefore, these two (2) figures must be netted together. Mr. Blakeman asked if this discussion pertained to the PJM spot market energy, and Mrs. Mitchell confirmed this. Mr. Blakeman indicated that this was decreased by approximately 52.9% in FY 17. Mrs. Mitchell stated her belief that the unhedged energy was included in the PJM Charges - Transmission and Fees, on Line 19 of the Electric Revenue Fund Summary. Mr. Blakeman questioned if transmission and fees included energy rather than services for transmission. Responding, Mrs. Mitchell stated her belief that the unhedged energy is included in the PJM energy and transmission, and the projection was increased by approximately $4.3M for FY 17 because this was the unhedged portion. She confirmed that transmission fees include some energy; however, she indicated that she would have review this to make sure that amounts were in the correct place. Mr. Blakeman noted that capacity charges were approximately the same for FY 17; however, the capacity credits were decreased by approximately 29%. He questioned if this decrease in the cost of capacity was an ongoing trend. Responding, Mr. Koenig stated that a temporary dip was projected for FY 17 and a temporary rebound was then projected for a couple of years, followed by what he felt could be termed as some question marks. Mr. Blakeman asked if transmission and distribution under direct expenditures were decreased due to a reduction in manning or material costs. In response, Mr. Koenig

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 30 stated that this was being driven by the reductions in pension and OPEB funding since the City was on schedule in this regard. He noted that the City had to put extra money in for a while, but this had now leveled off and started to decline in the Electric Fund. He reiterated that this was the City’s only fund in this position. Mr. Anderson asked at what percentage the City was covered for price increases or hedging for FY 17. Responding, Mr. Koenig stated his recollection that the target when entering the budget year on July 1, 2017 would be approximately 80%. He indicated that the City was getting close for FY 18, and some of the other purchases made for some of the out years were close to 80%. Mr. Koenig advised members that the City would be right at or a little above 80%. Noting the decline in capacity credits, Mr. Anderson questioned whether the City was getting less in capacity credits because the cost of power was down, and he inquired if these items track together. In response, Mr. Maloney stated that the drop in the City’s capacity credits was due to an outage during the peak period in the last week of February 2015. He indicated that the City took a temporary hit that was showing up in this year’s budget. Mr. Maloney stated that there was a need to go out and find replacement capacity, and this was the added cost. He projected that this should be a one (1) year rebound, noting that in this capacity planning year the City had been doing very well and there had not been any outages. Mr. Neil noted that two (2) of the old plants would be going offline and questioned if this was reflected in the calculations. Responding, Mr. Maloney stated that buying replacement capacity for these plants would not be reflected until FY 18. Mr. Koenig reviewed the Governmental Capital Projects Fund Summary, which identified the different revenue sources and predicted expenditures related to the capital plan for each department. The proposed revenue and expenditures were approximately $11.3M. Mr. Anderson indicated that a developer had made a PILOT payment and questioned why this did not appear in the budget for the Parkland Reserve. Responding, Mrs. Mitchell advised members that none of the reserve funds were included at this point, but they would be included when the budget is brought forward in May. She indicated that staff had focused on the three (3) major funds for this presentation. Mr. Koenig reviewed the Water/Wastewater Improvement & Extension Fund Summary, which had a total beginning balance and revenues of approximately $7.8M between the two (2) funds. There were expenditures of $1.33M in water, slightly over $2M in wastewater, and $1.2M in treatment expenses. He advised that total expenditures were roughly $4.5M, which would cover capital improvement and vehicle purchase expenditures. Responding to Mr. Hare, Mr. Koenig stated that detailed information regarding the vehicles was provided in the Preliminary Capital Investment Plan - FY17 thru FY21,

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 31 and staff would come back with a presentation on vehicles as part of the overall budget. He indicated that this evening’s meeting was for a general overview of the expected expenses by category. Mr. Koenig reviewed the Electric Improvement & Extension Fund Summary, noted that it was related to capital projects. He stated that a portion was for generation, transmission and distribution, electrical engineering, and meter reading. In summary, Mr. Koenig stated that the Electric Fund, while challenging, was going fairly well, noting that the electric system received a reliability award during the City Council meeting held the previous night. He stated that this was an important award from an economic development and customer service standpoint. Mr. Koenig indicated that this was a reflection of the dedication of staff in keeping the system running, the City’s continuing investment in keeping the system running 24/7 with very few interruptions, and the City’s return on this investment. Mr. Koenig advised members that there were challenges on the water and sewer side. The City had not quite reached the revenue plateaus that were originally promised for Calpine, but staff was working through some of the actual run profiles to see what the final revenues would be. The City was investing in the expansion of the supply side of the system, water pumping stations, the water treatment plant, renewals and replacement of pipe to improve water quality, and increased diameters in pipe sizes. He indicated that, when taking on new developments, the electric and water/wastewater systems are getting bigger and there are more customers, so there is an opportunity to expand these systems and increase the revenues associated with them. Mr. Koenig stated that challenges associated with the water/wastewater system were the future rate design issue, the future structure of water, and the continued focus and effort on renewals and replacement of the system, noting that, in some cases, pipe had been in the ground for 100 years and was still performing. Mr. Koenig reiterated that the biggest challenge would be in the General Fund, as it had been for a number of years. There were some positive things over the last few years, including an uptick in realty transfer taxes and increased construction activity. He noted that an increase in houses being built results in new commercial structures being built. Mr. Koenig felt that these were good signs for revenues coming into the local government, since the City derives a substantial amount of revenue from property transfers and construction-related activity. When the economy is moving in the City and there are real estate transfers, this usually equates to the City’s budget improving from an overall revenue standpoint. Mr. Koenig stated that challenges associated with the General Fund include increased public safety spending for the police and potential fire purchases going forward, as well as increased spending related to the MS4 permit. He advised members that there was not a recommendation in the current proposal for non-bargaining salaries; however, all of the labor contracts that had been signed and were in place were reflected in the proposal. Mr. Koenig indicated that there was an uptick in health care costs, but these were being offset, in some cases, by decreases in funding to the Electric Fund.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 32 He also noted that there was some pension cost escalation related to the General Fund. Mr. Koenig indicated that staff would be bringing forward some discussions regarding how to fund public safety in the budget hearings, but staff was very conscious of the heavy lift that Council did with regard to the property tax rate increase last year and was committed to maintaining that property tax rate. Staff felt that, with some minor adjustments, the current level of service could be delivered within the current tax structure. Mr. Slavin stated that the proposed capital plan would be reviewed at a later date. Mr. Anderson questioned what formula was being used to project transfer taxes. Responding, Mrs. Mitchell advised members that the last three (3) to five (5) years in the Municast forecast model provided the basis for the preliminary numbers in the draft budget. Changes in these trends are reviewed and, based on that, staff prepares an estimate looking at the year to date. Mrs. Mitchell stated that staff does not look at property sales, noting that considering just the number of sales distorts the estimate. She indicated that trends in residential housing are fairly stable, so staff uses these figures and ramps them up to account for what they think may be the large receipts, such as those for apartment complexes. Mrs. Mitchell noted that there had been several large receipts in the current fiscal year totaling more than $0.5M, which occurs in some years and not in others, so staff tries to be conservative in their estimates. In response to Mr. Anderson regarding how confident staff was with revenue numbers, Mrs. Mitchell stated her personal level of confidence at 90% - 95%. Mr. Sudler asked what would be included in the missing 5%, and Mrs. Mitchell indicated that she did not know what might be missing but, as a precaution, she did not want to say that staff felt 100% confident. Mr. Koenig stated that in general he was very confident in the overall numbers. He stated the desire to take one more look at both the expense and revenue sides coming into the final budget presentation. Mr. Koenig indicated that the transfer tax is somewhat challenging from the administrative side and he did not want to overestimate it. He did not want the transfer tax to be the budget balancer, because he felt this would be a slippery slope from the administrative side. In regard to property taxes, Mr. Koenig indicated that Mrs. Cheryl Bundek, Tax Assessor, would probably be asked once more if she was sure of the numbers or if there would be changes; however, he felt this would not fluctuate very much. He stated that staff now accounts for exemptions that are issued, and the number presented was the number that staff expected to receive during the budget year based on current calculations. Mr. Koenig indicated that staff may review permits, licenses, and Planning Commission authorizations to see what has happened during the past few months, but he did not expect large changes amounting to several hundred thousand dollars.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 33 In response to Mr. Anderson as to when members would hear proposals resulting from the public safety study being conducted by the Center for Public Safety Management, Mr. Koenig stated that fire and Emergency Medical Services (EMS) recommendations were available on the City’s website. He expressed his desire for the consultant who prepared the report to provide a presentation to Council or the Council Committee of the Whole; however, this had not been scheduled and it was uncertain if it would occur before, during, or after the end of the budget hearings. Mr. Koenig indicated that the consultant had done a site visit two (2) or three (3) weeks ago regarding the police portion of the study. He expressed his hope that this report would be finalized and made available in the next six (6) to eight (8) weeks. In response to Mr. Shevock as to whether the decreasing landfill fees are offset by recycling fees, Mr. Koenig stated his recollection that the reduction in tipping fees was between $6.00 and $10.00 per ton. He explained that the City typically signs a differential disposal fee agreement with the Delaware Solid Waste Authority (DSWA) that sets the City’s fee for a three (3) year period, and this agreement is approved by Council. Mr. Koenig noted that the DSWA is the City’s only option for solid waste disposal. He advised members that there had been some difficulty with the performance of the City’s recycling contractor and thought it likely that there would be internal discussion and proposals at the administrative level regarding how the City would handle recycling in the long run. He stated that the expense for the contractor exceeds the reduction in the landfill tipping fee; therefore, there was a net increase in expenses and staff was not happy with the service. Mr. Koenig indicated that he would like to implement weekly recycling since he believed this would increase the amount of recycling, noting that this would create some operational problems. He indicated that he would not be bringing this proposal for the FY 17 budget. Mr. Koenig explained that currently there was a need to separate waste and touch it more times, so costs were going up. Previously, customers put yard waste, household trash, and recycling in a 90-gallon, black trash containers, which were picked up and dumped by the City; however, staff was now under pressure to separate recycling, household garbage and yard waste, and bulk trash and yard waste are also picked up. Mr. Koenig stated that the service was being stretched. There were also challenges in areas with higher density or smaller properties, with limited space for setting out containers while allowing distance between containers and space for cars. Mr. Koenig indicated the need for the City to adjust and modify service delivery, and to discuss this with communities, noting that there may not be a one (1) size fits all for communities. He stated his belief that sanitation service would be modified over the next several budget cycles. Mr. Koenig stated that some customers have recycling every week but not trash, which is difficult for the City as a service provider to adjust to. He indicated that the City was having difficulty providing levels of service that customers are happy with, and the sanitation budget is challenging. He reiterated that at this point the tipping cost reduction would not cover the cost of recycling or enhanced recycling. Costs were close, but there was not a one (1) to one (1) ratio.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 34 By consent agenda, Mr. Anderson moved for acceptance of the Council Committee of the Whole Report, seconded by Mr. Neil and carried by a unanimous roll call vote. SEMI-ANNUAL INSPECTION BY THE CITY MANAGER - ROBBINS HOSE COMPANY In accordance with Chapter 46 - Fire Prevention and Protection, Article II - Fire Department, Division 1 - Generally, Section 46-43 - Semiannual Inspections, of the City Code, the City Manager, Mr. Scott D. Koenig, met with the Fire Chief to discuss fire company issues. Mr. Koenig submitted a memorandum outlining the items discussed and noted that the Robbins Hose Company continued to provide an outstanding level of service to the City of Dover and the unincorporated areas of the fire district. Referring to the memorandum from Mr. Koenig, Mr. Lewis requested a more precise explanation regarding item #7 - Potential Property Tax Credit - Update. Responding, Mr. Koenig explained that this was a follow-up to a discussion he had with former Fire Chief Mark Hall during the last semi-annual inspection. Mr. Koenig informed members that former Chief Hall had mentioned the idea of a potential City property tax credit for Robbins Hose Company volunteers who meet certain criteria. Mr. Koenig stated that it was currently up to Robbins Hose Company to decide if they would like to pursue this idea and make a proposal to the City, which would include the number of members that live within the City limits and the type of property tax credit or relief that they would be seeking as an incentive. Mr. Koenig advised that no action has been taken by the Robbins Hose Company regarding this matter. In response to Mr. Lewis, Mr. Koenig informed members that, at this time, he did not have a position on this matter, explaining that membership is always discussed during the semi-annual inspection, and this was an idea that the former chief had brought up to help encourage potential membership in Robbins Hose Company. Mr. Lewis moved for acceptance of the report of the Semi-Annual Robbins Hose Company Inspection, as submitted by the City Manager. The motion was seconded by Mr. Anderson and unanimously carried. PROGRESS REPORT ON THE YOUTH ADVISORY COMMITTEE’S REPORTING OF THEIR MINUTES Mr. Anderson, Youth Advisory Committee (YAC) Liaison, reviewed a memo dated April 6, 2016 submitted by Rebecca Anderson, YAC Chair, regarding the Committee’s minutes action plan. Mr. Anderson noted that it was a priority for the YAC to resolve the problem with the minutes and they had formulated a request for additional help. Mr. Anderson noted that the YAC was the only City committee that currently prepares their own meeting minutes; however, Council Resolution No. 2010-03 does not indicate that they have to take minutes, only maintain a copy of them. He informed members that the YAC was requesting a one- time training to teach members how to properly record minutes. This training would be held immediately preceding their meeting scheduled for May 2, 2016, and five (5) active members had volunteered to attend. Mr. Anderson explained that there had been a problem with the previous secretary; however, that member was no longer serving on the YAC and there was currently a

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 35 temporary secretary. He stated that the requested training would also allow members to ask questions regarding basic parliamentary procedure. Mr. Anderson stated that the current minutes are up-to-date and the YAC was requesting assistance for the future. For next fiscal year, the YAC was requesting a $1,000 budget for record keeping, to contract an adult through the City as well as purchase digital equipment to prevent some of the confusion and errors that had been encountered. He noted that the February meeting recording was damaged by the tape recorder and they need to have the tape repaired, as well as prevent incidents like this from occurring in the future. Mr. Anderson reiterated that the YAC is the only committee that he knows of that keeps it’s own minutes and, if that is to continue, the YAC requests minimal assistance in doing so. He stated that the requested budget would allow a small stipend per meeting for the contracted individual’s preparation time and would cover the full year. Mr. Anderson noted that the YAC is in a unique situation, explaining that the City does not expect any of the paid committees to do what is expected of this volunteer committee. Mr. Anderson expressed his belief that the YAC had done an adequate job during the last couple of months in keeping the records up-to-date and it is the YAC’s plan to get the other recordings up to date, so that everything will be sufficiently done. Mr. Sudler asked if there was ever a minutes-taker present or discussion about a budget for a minutes-taker for the YAC. Responding, Mr. Anderson indicated that in 2010-2011, there was a staffing issue with the Clerk’s Office and taking on an additional committee would have been substantially burdensome. He stated that this was not the proposal of the current YAC members. Mr. Anderson noted that a member of the previous committee was very skilled at secretarial activity and that person did a fine job at taking the minutes. He explained that sometimes you get that in a volunteer group, but when you are recruiting for membership and not a position, it can be difficult. Mr. Anderson stated that the current YAC had a good person; however, due to a change of schools, that member resigned from the committee and a replacement has been extraordinarily difficult to maintain. He informed members that two (2) members had currently taken on the minutes as an additional duty. Mr. Sudler stated that the YAC is a City committee and, referring to the Freedom of Information Act (FOIA), expressed concern with information being processed in a timely manner and not reflecting negatively on the City. He suggested the possibility of the City looking into providing the YAC with a minutes-taker. Mr. Slavin suggested, since the request for funding is for the next fiscal year, that members discuss it as part of the budget process for Fiscal Year 2017. He stated that if discussions are needed prior to that, this matter could be referred to the Legislative, Finance, and Administration Committee. Mr. Hare indicated that the YAC was originally formed as a volunteer committee and they were charged with taking their minutes. He stated that if they were unable to do that, the request would need to be discussed as part of the budget process, to determine if Council desires to afford money for it. Mr. Hare noted that in previous years the YAC prepared their minutes and he did not know when this became a problem.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 36 Mr. Anderson restated that Council Resolution No. 2010-03 does not indicate that the YAC has to take minutes, only maintain a copy of them. He stated that there are different options, including ways to recruit adult volunteers, and that would be up to Council. Mr. Anderson expressed his opinion that the YAC recommendation was very sensible and should be accepted. He stated that the YAC discussed this request significantly and it was his belief that they had developed a very good compromise that would solve practically every objective, and would start with volunteer training. Mr. Sudler moved to refer the Progress Report on the Youth Advisory Committee’s Reporting of their Minutes to the Legislative, Finance, and Administration Committee for further discussion and a possible recommendation for the Fiscal Year 2017 budget. The motion was seconded by Mr. Hosfelt. Mr. Sudler expressed his opinion that this matter needs to be discussed, noting his belief that if the YAC is going to have a title of a City entity or a direct relationship with the City, the City needs to cover all aspects. Mr. Hare agreed with Mr. Sudler and reminded members that the YAC is an advisory committee that does not set their plan of action but makes recommendations to Council to approve or disapprove. The motion to refer the Progress Report on the Youth Advisory Committee’s Reporting of their Minutes to the Legislative, Finance, and Administration Committee for further discussion and a possible recommendation for the Fiscal Year 2017 budget was carried by a vote of eight (8) yes (Sudler, Neil, Lewis, Cole, Hosfelt, Hare, Hutchison, and Slavin), and one (1) no (Anderson). YOUTH ADVISORY COMMITTEE 2015 ANNUAL REPORT AND 2016 ANNUAL PLAN OF WORK By consent agenda, Mr. Anderson moved for acceptance of the Youth Advisory Committee 2015 Annual Report and 2016 Annual Plan of Work, seconded by Mr. Neil and carried by a unanimous roll call vote. CITY MANAGER’S ANNOUNCEMENTS Mr. Scott Koenig, City Manager, reminded members that spring is a very busy time of year for all City departments and the number of service calls tends to increase. He thanked the entire workforce for all the efforts that they are putting forward for the citizens. Mr. Koenig stated that many people will be coming to Dover for Old Dover Days, NASCAR, and Firefly, and this is an excellent time to showcase the City and the opportunities that are afforded within the City. COUNCIL MEMBERS’ ANNOUNCEMENTS Mr. Sudler thanked Mr. Scott Koenig, City Manager; Mrs. Anne Marie Townsend, Director of Planning and Community Development; the Dover Police Department; 31st District Representative Sean Lynn; and all those who participated in the Fourth District Quarterly meeting at Union Missionary Baptist Church regarding Simon Circle and Lincoln Park issues. Mr. Sudler thanked the City for promptly getting involved and starting to repave some of the dilapidated streets. On behalf of the Fourth District, he also thanked Council President Slavin for initiating that movement.

CITY COUNCIL MEETING OF APRIL 25, 2016 PAGE 37 Mr. Anderson agreed with Mr. Sudler and noted that over the past year, many venues had been provided, many of which were free of charge. Mr. Anderson thanked everyone who had provided a venue and the citizens for their participation. Mr. Anderson announced that the Youth Advisory Committee was going to need more people, adults and three (3) to four (4) youth. Mr. Hare announced that the Dover Miliary Support was a new organization created to support the needs of active duty military, the National Guard, and all branches that are stationed in Delaware, working with the Good Shepherd Fund from the First Sergeants Association. He stated that the organization would be having a kick-off night on Saturday, April 30, 2016, from 5:30 p.m. to 7:30 p.m. at the Air Mobility Command (AMC) Museum. Mr. Hare invited everyone to attend, noting that there would be nice auction items and food. He stated that donations are accepted but there is no charge to attend. Mr. Neil moved for adjournment, seconded by Mr. Lewis and unanimously carried. Meeting adjourned at 8:22 p.m. TRACI A. McDOWELL CITY CLERK All ordinances, resolutions, motions, and orders adopted by City Council during their Regular Meeting of April 25, 2016 are hereby approved. ROBIN R. CHRISTIANSEN MAYOR /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Council-Minutes\2016\04-25-2016.wpd Exhibits Exhibit #1 - Presentation - “LEAD360 Awards Ceremony”

EXHIBIT #1 Regular Council Meeting of 04/25/2016 LEAD360 Awards Ceremony City of Dover April 25, 2016

The LEAD360 Challenge, an initiative of the Jefferson Awards Foundation, is one of the largest youth service contests in America. The Challenge taps into the energy and idealism of young people, encouraging and facilitating them to share their stories of service with millions. ★★★★★★★★★★ LEAD360 will become the platform that powers youth service ideas: to realize their vision, act as the megaphone for their voices, and empower them and the country to ACT with MAXIMUM IMPACT.

The winner of LEAD360 in 2014, 16-year-old Georgetown Delaware native Emma Rider, gathered 80,000 pairs of donated shoes, which in turn powered clean water to 37 African communities. To date LEAD360 has seen:  More than 6,000 projects and BIG IDEAS  More than 100,000 votes on Social Media to determine the winners this year  More than 1Million impressions on Twitter and Instagram this year  In 2015 impacted more than 9Million lives at a financial value of $12Million

This year we had 7 Mayors in Delaware commit to host and promote the LEAD360 Challenge in their city. City of Dover: Mayor Robin Christiansen Town of Georgetown: Mayor Bill West City of Lewes: Mayor Ted Becker City of Newark: Mayor Polly Sierer City of Seaford: Mayor David Genshaw City of Smyrna: Mayor Joanne Masten City of Wilmington: Mayor Dennis Williams

2015-2016 State of Delaware Phase 1 Results 92 Projects 45,242 Volunteers 201,377 Volunteer Hours 307,141 Lives Impacted $4,071,842 Financial Impact

2015-2016 State of Delaware Phase 2 Results 13 Activation Projects Completed Delaware LEAD360 Impacted 58,252 Lives = A $350,960 Value

Big Ideas •Brianna Abdallahi, Women’s Worth Empowerment Conference • Niyah Richardson, Civic Engagement and Community Building Mayor Christiansen challenges each of the idea submissions to be activated and submitted as projects next year!

Fairview Elementary School Voices of Unity Choir

She’s The First Dover High School

Chase Christansen Safety Patrol South Dover Elementary School

Aysia Clay Education and Literacy

Senators in Action Central Middle School

Holy Cross Knitting Club Holy Cross Elementary School

Landon Bailey Little League Baseball Coach Men of Color Alliance

Grace Yeung Elder Care

JDG Middle School Food Drive Positive Outcomes Chipman Middle School Smyrna Middle School

Weston Williams Book Drive

Mariah and Kiersten Todd A Wish For Water Mispillion Elementary School

Mayor’s Top Project Stars Program William Henry Middle School

City of Dover Phase 2 Results Delaware State University Office of Student Leadership 429 Bags of Food

City of Dover Phase 2 Results Delaware State Police 584 Bags of Food

City of Dover Phase 1 Results 13 Projects 2,292 Volunteers 9,885 Volunteer Hours 12,634 Lives Impacted $199,874 Financial Impact

Delaware’s Phase 1 National Finalists Congratulations! 3B Ripples‐ Braeden Mannering The Inspiring Project‐ Chase Marvil Care For Our Vets‐ The Jefferson School Knights Pantry‐ Sussex Central HS SIA Team Got Milk Bottles?‐ Gallaher Elementary

2015 Phase 2 Activation Participants Thank you for participating! DreamBoxes: City of Wilmington Bank of America Delaware State Police Wilmington University The Future Isn’t Hungry: University of Delaware Parking Services University of Delaware Men’s Basketball Brae’s Brown Bags MOT Charter St. George’s High School DSU Office of Student Leadership Cape Henlopen HS JROTC Gear Going Global: St. George’s High School

2015 Phase 2 Delaware Winners! Congratulations! DreamBoxes: Delaware State Police‐ 584 boxes The Future Isn’t Hungry: St. George’s High School‐ 1,700 bags of food Gear Going Global: St. George’s High School‐ 55 pieces of sporting equipment

PHASE 2 – ACTIVATION & IMPACT Kickin’ Violence Score on Hunger Peace & Justice Hunger & Poverty Grace Wickerson Will Lourcey Teddy Grams for Troops Health & Wellness Cory La Roe

Over the course of an entire year, we will track the collective impact of these projects all over the country. Health & Wellness Peace & Hunger & Teddy Grams for Justice Poverty Troops Kickin’ Violence Score on Hunger We invite individuals, organizations, schools, companies, and communities to participate in LEAD360! Jefferson Awards will be given to those who make the biggest impact.

LEAD360 Thank you to all of our participants, and to Mayor Robin Christiansen for supporting the Challenge.