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REGULAR COUNCIL MEETING AGENDA REVISED TO INCLUDE A NEW ITEM #5 FEBRUARY 10, 2014 - 7:30 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE OPEN FORUM - 15 MINUTES PRIOR TO OFFICIAL MEETING (7:15 p.m.) The “Open Forum” segment is provided to extend the opportunity to the general public to share their questions, thoughts, comments, concerns, and complaints. Discussion of any item appearing on the agenda as a public hearing is prohibited during the Open Forum as an opportunity will be provided during consideration of that item. Citizen comments are limited to three (3) minutes. Council is prohibited from taking action since they are not in official session; however, they may schedule such items as regular agenda items and act upon them in the future. INVOCATION BY REVEREND THEODORE HENDERSON PLEDGE OF ALLEGIANCE LED BY COUNCILWOMAN WILLIAMS AGENDA ADDITIONS/DELETIONS * CONSENT AGENDA Those items on the Council Agenda which are considered routine and non-controversial shall be marked with an asterisk (*) and will be acted upon by a single roll call vote of the Council. There will be no separate discussion of these items unless a member of Council so requests, in which event the matter shall be removed from the Consent Agenda and considered a separate item. * 1. ADOPTION OF MINUTES A. Special Council Meeting of January 27, 2014 B. Regular Council Meeting of January 27, 2014 2. PUBLIC HEARING/ADOPTION OF RESOLUTION NO. 2014-02 - ABANDONMENT OF BUDD STREET * 3. UTILITY COMMITTEE REPORT - JANUARY 27, 2014 A. Explanation of PJM (Pennsylvania, Jersey, Maryland Power Pool) Reactive Service Charges - Robert Trinnear, The Energy Authority (Committee action not required)

Council Agenda - February 10, 2014 Page 2 * 4. LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - JANUARY 27, 2014 A. Review of Proposed Acceptable Use Policy (Information Technology) (Committee recommended adoption of the proposed Acceptable Use Policy) B. Request for Continued Staff Support - Downtown Dover Partnership (DDP) (Committee recommended acceptance of the City Manager's recommendation to extend staff support for a fiscal year since the employees are already covered and then, in the future, discuss it with the Mayor during the budget hearings.) 5. UTILITY COMMITTEE REPORT - FEBRUARY 10, 2014 Except for the following time sensitive issue, the Utility Committee Report from February 10, 2014 will be presented to Council during their Regular Meeting of February 24, 2014 for review and consideration. A. McKee Run Units 1 and 2 - 2017-2018 Capacity Auction (Staff recommended removing Units 1 and 2 from service) * 6. MONTHLY REPORTS - DECEMBER 2013 A. City Assessor’s Report B. City Manager’s Report C. City Planner’s Report D. Controller/Treasurer’s Budget Report E. Economic Development Office Report F. Fire Chief’s Report G. Police Chief’s Report * 7. QUARTERLY REVIEW OF CAPITAL INVESTMENT PLAN (CIP) (OCTOBER, NOVEMBER, AND DECEMBER) (Staff recommends acceptance of the report) 8. FINAL READING - PROPOSED ORDINANCE #2014-01 The First Reading of the proposed ordinance was accomplished during the Council Meeting of January 27, 2014. Copies of the proposed ordinance are available at the entrance of the Council Chambers. A. Proposed Ordinance #2014-01 Amending Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes; Appendix C - Downtown Redevelopment, Article II - Definitions and Article III - Eligibility; and Appendix E - Commercial and Industrial Building Redevelopment, Article II - Eligibility 9. COUNCIL MEMBERS’ ANNOUNCEMENTS /tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Council-Agendas\2014\02-10-2014 REVISED.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

SPECIAL COUNCIL MEETING A Special Council Meeting was held on January 27, 2014 at 4:32 p.m. with Council President Bonar presiding. Members present were Mr. Dixon, Mr. Slavin, Mrs. Williams, Mr. Hare, and Mr. Hutchison. Mr. Anderson, Mr. Lynn, and Mr. Perza were absent. Council staff members present were Mr. Koenig, Mrs. Mitchell, Deputy City Solicitor Pepper, and Mrs. McDowell. AGENDA ADDITIONS/DELETIONS Mr. Hutchison moved for approval of the agenda, seconded by Mr. Dixon and unanimously carried. Mr. Slavin moved to recess into Executive Session pursuant to 29 Del. C. §10004(b)(4) - Legal Matters (Ward Transformer Suit - OU-1 Remediation). The motion was seconded by Mr. Hutchison and unanimously carried. Meeting recessed at 4:33 p.m. Executive Session adjourned at 5:20 p.m. POTENTIAL ACTION RESULTING FROM THE EXECUTIVE SESSION Ward Transformer Suit - OU-1 Remediation During the Executive Session, members consulted with Mr. William White of Moore & Van Allen, via conference call, regarding the status of the Ward Transformer suit. Mr. Slavin moved to instruct Deputy City Solicitor Pepper to write a letter to Mr. William White, Moore & Van Allen, expressing City Council’s concerns regarding the City of Dover’s responsibility versus the other parties’ responsibilities, as well as their discomfort with the ongoing costs. Additional information regarding this matter should also be requested. The motion was seconded by Mr. Hare and unanimously carried. Mr. Slavin moved to convene a briefing for the representatives of the congressional delegation on this issue, with the potential outcome being that they will bring, at a second briefing, representatives from the Environmental Protection Agency (EPA) to further explain where we are in the process. The correspondence should be copied to Vice President Biden. The motion was seconded by Mr. Hare and unanimously carried. Mr. Hutchison moved for adjournment, seconded by Mr. Hare and unanimously carried. The Special Council Meeting adjourned at 5:23 p.m. TRACI A. McDOWELL CITY CLERK

SPECIAL COUNCIL MEETING OF JANUARY 27, 2014 PAGE 2 All orders, ordinances, and resolutions adopted by City Council during their Special Meeting of January 27, 2014 are hereby approved. CARLETON E. CAREY, SR. MAYOR /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Council-Minutes\2014\01-27-2014 SPECIAL.wpd

REGULAR COUNCIL MEETING The Regular Council Meeting was held on January 27, 2014 at 7:30 p.m. with Council President Bonar presiding. Council members present were Mr. Dixon, Mr. Lynn, Mr. Perza, Mr. Slavin, Mrs. Williams, Mr. Hare, and Mr. Hutchison. Mr. Anderson was absent. Council staff members present were Police Chief Hosfelt, Mrs. Mitchell (departed at 7:44 p.m.), Mrs. Townshend, Fire Chief Carey, Mr. Koenig, Deputy City Solicitor Pepper, and Mrs. McDowell. Mayor Carey 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 Bonar declared the Open Forum in session and reminded those present that Council was not in official session and could not take formal action. Mr. Roy Sudler, Jr., 353 Rita Wilma Road, advised members that the Social Action Commission (S.A.C.) with the Mt. Zion A.M.E. Church conducted a survey regarding Dover Park and recreational facilities. Mr. Sudler, Chairman of the S.A.C., submitted over 300 signed petition-surveys (as on file in the office of the City Clerk) and a summary entitled SAC 2014 East-Side Assessment Report (Exhibit #1). Mr. EShed Alston, 406 Arnold Court, advised members of the “Citizens Coalition and Task Force on Racial and Ethnic Fairness Considerations Specifically Regarding the Disenfranchized Black and Minority At Risk Communities in Particular to the State, Counties, and Cities Public Official Obligations to These Stated Communities in the State of Delaware Between 2008 and 2014.” Mr. Alston provided the Purpose, Scope, and Intent of the task force (Exhibit #2). The invocation was given by Bishop Thomas L. Holsey, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. Hutchison moved for approval of the agenda, seconded by Mrs. Williams and unanimously carried. Mr. Slavin moved for approval of the Consent Agenda, seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson). ADOPTION OF MINUTES - SPECIAL COUNCIL MEETING OF DECEMBER 2, 2013 The Minutes of the Special Council Meeting of December 2, 2014 were approved by motion of Mr. Slavin, seconded by Mr. Dixon and bore the written approval of Mayor Carey (with Perza voting no and Anderson absent). ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JANUARY 13, 2014 The Minutes of the Regular Council Meeting of January 13, 2014 were approved by motion of Mr. Slavin, seconded by Mr. Dixon and bore the written approval of Mayor Carey (with Perza voting no and Anderson absent).

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 2 ADOPTION OF MINUTES - SPECIAL COUNCIL MEETING OF JANUARY 13, 2014 The Minutes of the Special Council Meeting of January 13, 2014 were approved by motion of Mr. Slavin, seconded by Mr. Dixon and bore the written approval of Mayor Carey (with Perza voting no and Anderson absent). PROCLAMATION - BLACK HISTORY MONTH The City Clerk read the following Proclamation into the record: WHEREAS, on July 2, 1964, the Civil Rights Act was signed into law by President Lyndon B. Johnson. This landmark piece of civil rights legislation in the United States outlawed major forms of discrimination on the basis of race, color, religion, sex or national origin; and WHEREAS, on June 11, 1963, President John F. Kennedy addressed the nation about civil rights. During his speech he asked Congress to enact legislation to give all Americans the right to be served in facilities which are open to the public - hotels, restaurants, theaters, retail stores, and similar establishments, as well as greater protection for the right to vote; and WHEREAS, after the assassination of John F. Kennedy; his successor, Lyndon B. Johnson honored his memory by doing all that he could to see the bill passed through the legislation and come to fruition for civil rights for all Americans; and WHEREAS, this year marks the 50th anniversary of the 1964 Civil Rights Act, and the Association for the Study of African American Life and History has selected "Civil Rights in America" as the 2014 National Black History Month Theme. NOW, THEREFORE, I, CARLETON E. CAREY, SR., MAYOR OF THE CITY OF DOVER, DELAWARE do hereby proclaim February 2014 as BLACK HISTORY MONTH in the City of Dover and urge all citizens to reflect on the important milestones by African Americans and others in the battle for civil rights and equal treatment under the law. PUBLIC HEARING - VIOLATION OF THE DANGEROUS BUILDING ORDINANCE - PROPERTY LOCATED AT 27 NORTH NEW STREET, OWNED BY JOE BURDEN, SR. A public hearing was duly advertised for this time and place to consider a violation of the Dangerous Building Ordinance at 27 North New Street, Owned by Joe Burden, Sr. Mrs. Ann Marie Townshend, Director of Planning and Community Development, explained that the property was a two-story wood-framed single family home. The house was condemned as unfit for human occupancy on November 6, 2013, due to excessive water damage, roof leaks, mold, mildew and broken water pipes. The house was boarded and secured by City Staff in November and has been vacant since. There are numerous code violations that exist on the property. Mrs. Townshend reviewed a presentation depicting the condition of the structure (Exhibit #3). Staff recommended that City Council take the following action for property located at 27 North New Street: 1) Declare this building and all accessory structures on this property dangerous; 2) Order the property repaired or demolished by February 27, 2014 by the owner or equity owner at their own risk; 3) Order the Building Inspector to cause the repair or demolition of the structures if not

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 3 completed by the owner within 10 days of the date established by City Council; and 4) Order the City Manager with the assistance of the City Solicitor to cause the cost of repairs or demolition to be charged against the land on which the building exists as a municipal lien or cause such cost to be added to the tax duplicate as an assessment, or to be levied as a special tax, or to be recovered in a suit at law against the owner. Council President Bonar declared the public hearing open. Mr. EShed Alston, 406 Arnold Court, asked if the City would end up with Mr. Burden’s property. Responding, Mrs. Townshend stated that the City would bill Mr. Burden to recover the cost of the demolition. If the invoice is not paid, it would be placed as a lien on the property. The only way the City would obtain ownership would be if it purchased the property at a sheriff’s sale for delinquent property taxes. There being no one else wishing to speak, Council President Bonar declared the public hearing closed. Mr. Perza moved that the structure located at 27 North New Street be declared a dangerous building and ordered that the property be demolished or repaired by February 27, 2014 in accordance with the process recommended by staff. The motion was seconded by Mr. Lynn and carried by a unanimous roll call vote (Anderson absent). Mr. Slavin reminded members that blighted properties in this area have been a long-standing issue that was brought to City Council’s attention by property owners and residents requesting that the Code be enforced. PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE REPORT - JANUARY 13, 2014 The Parks, Recreation, and Community Enhancement Committee met on January 13, 2014 with Chairman Dixon presiding. Semi-Annual Review - Statistics Regarding Jobs and Businesses Gained and Lost in the City of Dover Since July 2013 Mr. William Neaton, Economic Development Director, reviewed the semi-annual report of employment statistics for the 15 largest employers in the Dover area and reminded members that this information is updated and presented to members on a semi-annual basis. The report provided statistics regarding jobs and businesses gained and lost in the City of Dover since July 2013. Mr. Neaton stated that the numbers had been fairly stable for the past six (6) months. Mr. Neaton advised members that Bayhealth was in the process of performing engineering and architectural studies for the addition of a floor on the previous Kent General renovation. He advised members that Kent General Hospital created a "fit out" plan for the shell space on their new building to increase the number of available beds.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 4 Mr. Neaton stated that the number of full-time and part-time employees at Delaware State University (DSU) had grown. He advised members that DSU was preparing to construct an optic center and indicated that it would be one of the finest centers in the world. Mr. Neaton noted that a Convocation Center is also planned for the future. He advised members that it will be an academic facility which will also house the sports complex for basketball and other large events and activities. Mr. Neaton stated that it is an economic development initiative which will bring conventions, car shows, and boat shows to Delaware. He advised members that DSU was previously awarded $250,000 in grant money to perform a feasibility study regarding the Center and that he and the Mayor are serving on the Committee conducting the study. It was hoped that final recommendations would be available by the end of January 2014. Referring to the decline in Comcast Cable’s employment numbers, Mr. Neaton stated that Comcast had merged some of their offices and reduced the number of staff. He was advised by Mr. Tom Worley, Director of Government Relations, Comcast Cable, that these changes were complete and it was planned to maintain current staffing levels. Mr. Neaton stated that although Proctor & Gamble’s employment levels had not changed significantly to date, the organization planned to become the sole provider of wipes, consolidate related facilities and contractors, and expand their facility. Responding to Mr. Hutchison, Mr. Neaton indicated that the expansion would allow for more efficient functionality so that more product could be produced without impacting staffing levels. Mr. Neaton advised members that he and Mayor Carey would be hosting a Large Employer Breakfast on February 12, 2014 for a second year, noting that last year’s event was very well attended. Mr. Neaton stated that the breakfast provides a venue for interaction between the plant managers and large employers in Dover. In addition, a County-wide plant managers meeting was scheduled for January 15, 2014 at noon to provide local plant managers an opportunity to communicate and collaborate on ideas for the City of Dover. Mr. Neaton noted that the current unemployment rate in the City of Dover was the lowest it had been since December 2008. Responding to Mr. Hutchison regarding meetings with the leadership at Dover Downs, Mr. Neaton stated that staff had not met with Dover Downs management in over a year. Mr. Neaton stated his intent to schedule such a meeting, along with the Mayor, and offered to share the results of this meeting with the Committee at the next meeting. Mr. Caldwell stated that he was pleased that the economic outlook for Dover appeared to be improving. Responding, Mr. Neaton indicated that the Uzin Utz manufacturing facility will hold a groundbreaking on March 13, 2014, which he stated would also be excellent for the City. No further action was taken by the Committee.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 5 Update - Community Development Block Grant (CDBG) Program Members were provided an Update of the Community Development Block Grant (CDBG) Program, including the status of FY 2013 CDBG Projects - December 2013. Mrs. Tracey Harvey, Planner I, advised members that all CDBG programs were currently underway, with the exception of the Milford Housing Development Corporation (MHDC) projects. Mrs. Harvey stated that staff was requesting that MHDC not be funded for the FY14 grant cycle because $139,000 in grant funds not been drawn down for the FY12 and FY13 fiscal years, which was jeopardizing the timeliness standards for the City for expenditure of the funds. Additionally, she indicated that procurement issues had been identified in recent audits of MHDC conducted by the City that needed to be addressed. Responding to Councilman Dixon regarding the scheduling of NCALL activities, Mrs. Harvey advised members that NCALL was planning to hold an open house in April 2014. No further action was taken by the Committee. Recreational Needs Assessment Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that the City of Dover’s 1996, 2003 and 2008 Comprehensive Plans each included a recommendation to develop a City-wide Recreation and Parks Plan which to date had not been developed. She stated that in the past 20 years there had been many changes in the City and, in order to invest limited funds wisely, a City-wide Parks and Recreation Needs Assessment and Plan was necessary. Mrs. Townshend indicated that the assessment should be City-wide and not focused solely on Dover Park or the recreation building at Dover Park. Mrs. Townshend recommended the following: • In-house staff from the Planning Department and Parks and Recreation Department will lead the development of the Parks and Recreation Needs Assessment and Plan, with assistance from the State Division of Parks and Recreation. • A variety of means will be used to engage the public and assess the recreation needs identified by the public, including workshops and a survey. In the outreach efforts, information will be gathered to assess the needs based on location. • An inventory of parks will be included and information will be gathered about the desired capital improvements for the parks, focusing on the three “anchor” parks (Dover Park, Schutte Park, and Silver Lake Park). • Specific recommendations for investments in the parks will be included based on the needs of the public, as well as for potential partnerships for meeting the needs of the City’s residents. Mrs. Townshend stated that, since in-house staff members who have numerous other obligations with the City would be utilized, the expectation is that the development of the Needs Assessment and Plan would take approximately twelve months to complete. It was hoped that the results would be provided to the Committee in January 2015.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 6 Responding to Mr. Hutchison, Mrs. Townshend explained that it was planned to consult the State and Kent County when conducting the assessment, and to include non-public agencies such as the YMCA, who recently purchased 20 acres on the west side of Dover for recreational activities. She noted that discussions regarding the potential for partnerships in this regard had taken place. In response to Mr. Caldwell’s inquiry regarding reaching a conclusion with respect to the Dover Park Recreation Building, Mrs. Townshend stated that the building continued to deteriorate and, in her opinion, was functionally obsolete. She did not believe it was a question of whether the building would be kept but rather to determine if another structure should be put in its place that would meet the needs of citizens. She noted that the demands seemed to relate to the need for gym space and the existing building could not meet that need. Responding to Councilman Perza, Mrs. Townshend advised the Committee that a new Planner would be joining the City of Dover Planning staff. The intention was to dedicate this employee to taking the lead on this project, with the assistance of Mr. Wayne Voshell, City of Dover Recreation Coordinator; therefore, the Department should have the staff necessary to move forward in early February 2014. Responding to Mr. Perza, she reassured members that the assessment would include all parks within the City of Dover, not just the Dover Park, and the assessment would be conducted solely by in-house staff and not be outsourced. In response to Mr. Perza, Mrs. Townshend reminded the Committee that the City’s Capital Improvement Program (CIP) included a number of projects, such as a skate park and a spray pad that were originally planned for Schutte Park. She stated that this assessment would provide an opportunity to reconsider locations for those projects, decentralizing the former concept of all activities being at Schutte Park. Mr. Perza suggested that residents be given an opportunity to present their views, noting that a decision must be made regarding the renovation of the existing building at Dover Park versus construction of a new one. He stated that action must be taken and not put off for another six (6) months. Mr. Hutchison questioned Mayor Carey as to whether or not the proposed assessment would satisfy his concerns regarding the demolition of the recreation building at Dover Park. Mayor Carey concurred that the assessment was long overdue and felt that waiting another year was too long, noting that the building had been out of service for a year. He advised members that in September 2013 a function was held at the facility that included 125 children, and other activities had taken place in the building. He felt that the facility was still serving a purpose for the community. He noted that the assessment addresses one (1) factor in the equation; however, the portion involving the building at Dover Park needed to move faster. Mr. Hutchison stated that, with proper funding, the project could move more swiftly; however, he noted that everyone was in agreement that the assessment should remain in-house. Mayor Carey concurred. Mayor Carey stated that it was necessary to determine the needs of the area before a decision can be made on the status of the building, since if it is determined the building does not meet these needs, it should be torn down; however, it should be replaced with something that does serve the purpose.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 7 Mr. Hutchison expressed his desire to bring closure to this longstanding issue, stating his feeling that the building was a liability and a great deal of time had been invested in coming to a conclusion regarding what was best for the Park, the City and the residents, which was to demolish the building. Mr. Perza reminded members of the Committee that the topic of discussion was recommending approval of performing a Recreational Needs Assessment, not the recreational building at Dover Park specifically. Mr. James Fogell, 360 Nimitz Road, expressed his appreciation for Dover Park and shared his opinion that additional restroom facilities needed to be placed by the playground, as existing facilities are near the tennis courts. Mr. Fogell stated that the Park is used very heavily for outdoor activities by the local youth. He did not believe the recreational building should be demolished. If it were demolished, he felt that another facility should be erected in its place so that the activities at the park overall would not cease. Mr. Fogell stated his understanding that funding would be required, but expressed his observation that the City spends money on a great many projects that are not necessary and/or do not serve the needs of the general population but cater to much smaller groups. He also expressed his opinion that some of the projects the City was involved in, such as paving or adding curbs to residents’ driveways, should not fall on the shoulders of the City but should be the responsibility of the homeowner. Additionally, Mr. Fogell cited areas where grooming or landscaping was being maintained for aesthetic purposes but did not provide a purpose for the community. He reminded members that the activities at Schutte Park were all structured and typically cost money to participate in and felt that the youth and community needed a place they could go “shoot hoops,” play baseball or soccer, or participate in other open format activities rather than being required to schedule in advance, pay a fee, etc. Mr. Roy Sudler, Jr., 353 Rita Wilma Drive, provided members of the Committee with a flyer regarding a meeting scheduled by the Social Action Commission (SAC) Community Task Force of Mt. Zion A.M.E. Church on January 22, 2014 at 5:30 p.m. and invited members, as well as the public, to attend. He stated that the SAC had developed a survey, entitled “Mt. Zion A.M.E. Church’s Social Action Commission’s Community Survey of Dover’s Recreational Park Programs and Facility Assessment” and distributed it to the community. Over 300 responses to the survey had been received and would be discussed during the upcoming SAC meeting. He offered to share this information at the Parks, Recreation, and Community Enhancement Committee meeting as well. (City Clerk’s Office Note: Subsequent to the meeting, Mr. Sudler provided the results of the survey to the City Clerk’s Office). Mr. Sudler indicated that the SAC plans to partner with the Dover Human Relations Commission (DHRC) and Dr. Phyllis Edamatsu, Assessment Chair of the DHRC and Professor at Delaware State University, in tallying the results of the survey. Mr. Sudler expressed his hope that the SAC, as an interfaith-based agency, would be considered when staff is developing partnerships to address the recreational needs of the City. He concurred with the Mayor’s position regarding the building at Dover Park, stating that if the building were demolished, another facility should be put in its place immediately. Mr. Sudler advised the Committee that his company, Sudler & Mishoe Construction, would donate 500 cinder blocks toward the construction of a new facility at Dover Park. Former Councilman Reuban Salters, 109 Bertrand Drive, stated the importance of taking care of the community’s youth and their families and providing recreational facilities. Mr. Salters expressed his opinion that the City does a spectacular job in some areas, citing the work of Mr. Zachery Carter, former Director of Parks and Recreation; however, he felt that other areas were extremely neglected, including youth programs and activities. Mr. Salters stated his dedication to the State and City’s youth, adding that times are changing and there is greater need to communicate with children, find what their needs are, and

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 8 provide facilities where they can participate. He indicated that children should know they are valued and respected as they are our future. He concurred with the need for gym space and felt that space was also needed for children to be creative with arts, crafts, music and other activities that would encourage youth to explore their abilities and interests. Mr. Salters felt that the rear portion of the building at Dover Park should come down; however, he stated that the front area of the building was very strong and suggested it remain as the core part of a new facility, stating that adding a pole building could require only a $50,000 - $60,000 investment to make the facility functional and fitting to the needs of the community. Mr. Salters suggested, if the building at Dover Park was a danger and needed to be torn down, that any motion made to take action to should include the Committee’s commitment to put something up in its place. Mr. Salters shared with those present that the Inner City Cultural League holds art classes for children at the Dover Housing Authority facility on Tuesday nights where children share their artwork. He invited those who were interested to join them and view the children’s artwork from 5:00 p.m. - 6:00 p.m. Mr. Hutchison stated that the original motion that was made to demolish the recreation building at Dover Park included a commitment of $80,000 to be put aside to invest in the future needs of the Park once determined. He expressed his belief that recreational needs should be addressed equally for all areas of the City. Responding, Mr. Salters stated that, while addressing the recreational needs of the City as a whole, special attention should be directed to the east side of town because residents there have no other options. Mr. Salters also expressed his confidence in the City and its dedication to serving the needs of the community and his belief that funding could be obtained. Councilman Dixon conveyed the importance of determining what the children want so that opportunities can be provided for activities that they will participate in. The Committee recommended authorizing the City’s Planning Department, beginning February 1, 2014, to perform a recreational needs assessment for the City of Dover, utilizing City staff to conduct workshops and other similar outreach efforts across the City to inventory park infrastructure and develop the needs of all of the City parks for future use. The objective will be to gather the necessary information from the public, study it, and make a needs assessment report back to the Committee by December 1, 2014. For clarification, Mr. Perza stated that this motion was unrelated to the Dover Park building and that the purpose of the assessment would be to gather information from the public to determine where resources relating to the future use of all City parks should be invested. He indicated that he planned to draft a separate motion and place this matter on the Committee’s February agenda in an attempt to resolve this matter. By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation. The motion was seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson).

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 9 By consent agenda, Mr. Slavin moved for acceptance of the Parks, Recreation, and Community Enhancement Committee Report. The motion was seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson). UTILITY COMMITTEE REPORT - JANUARY 13, 2014 The Utility Committee met on January 13, 2014 with Mr. Perza presiding in the absence of Chairwoman Williams. Request for Abandonment (Improved) - Budd Street - City of Dover Mr. Scott Koenig, City Manager, advised members that City of Dover staff requested the abandonment of Budd Street, an improved street running east-west from South State Street to Kings Highway and located north of Weyandt Hall at 5 East Reed Street, and south of the former Dover Public Library at 45 South State Street and the City-owned property adjacent to South American Avenue. Members were provided a map depicting the right-of-way proposed for abandonment (noted in red). Mr. Koenig explained that the abandonment of Budd Street would resolve mapping issues and lay the foundation for a potential re-subdivision or sale of the former Dover Public Library site. He stated that part of this right-of-way appears to have been abandoned years ago, possibly when Weyandt Hall (formerly the WSFS Building) was built; however, staff research and current mapping indicate that a ten foot (10') wide portion of Budd Street exists and is improved, since it includes the sidewalk area in front of the former library site. Mr. Koenig stated that the Budd Street abandonment was subject to the Development Advisory Committee (DAC) review process and Public Works Department staff indicated that public utility easements would be required for the existing water and wastewater infrastructure located within the subject right-of-way. In accordance with City policy, half of the right-of-way, or five feet (5’), would be conveyed to the adjacent properties. The Planning Commission recommended approval of the request for abandonment, as recommended by the Planning Staff. Public Works staff recommended: 1) abandonment of the subject right-of-way with conveyance of five feet (5') of said right-of-way to 5 East Reed Street, 45 South State Street and Tax Parcel Number ED-05-077.05-04-36.00 on South American Avenue, currently owned by the City of Dover, in conjunction with the provision of a public utility easement for each parcel; and (2) adoption of a Resolution by Council setting a public hearing regarding the proposed abandonment for February 10, 2014. In response to Mr. Perza, Mr. Koenig explained that approval of the current request would abandon half of the right-of-way to each adjacent property, which would allow for future internal adjustments through sale or subdivision of the property. The Committee recommended approval of staff’s recommendation and adoption of a Resolution by City Council setting a public hearing regarding the proposed abandonment for February 10, 2014. [City Clerk’s Office Note: In accordance with the City’s Procedure for Alley Abandonments, Resolution No. 2014-01 setting a Public Hearing will be presented to Council for consideration.]

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 10 By consent agenda, Mr. Slavin moved for approval of the Committee's recommendation, seconded by Mr. Dixon and, by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson), Resolution No. 2014-01 was adopted, as follows: A RESOLUTION PROPOSING THE VACATING AND ABANDONMENT OF A CERTAIN IMPROVED STREET SITUATED IN THE CITY OF DOVER. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: Section 1. The Council of the City of Dover favors the vacating and abandoning of Budd Street, as specified below: Adjacent to 5 East Reed Street (ED-05-077.05-04-35.00) Being a portion of that certain piece or parcel of land situated in the City of Dover, Kent County, State of Delaware, being an improved public street running in a west to east direction, located to the north of East Reed Street, said portion of street beginning at a point identified as the northwest corner of Parcel No. D-05-077.05-04-35.00; thence running with Parcel No. ED-05-077.05-04-35.00 North 86 degrees 32 minutes East 282.39 feet along the southerly line of the 10’ wide street to the northeast corner of Parcel No. ED-05-077.05-04-35.00; thence running North 7 degrees 5 minutes West 5 feet crossing into said 10’ wide street to a point in the center of the street, opposite the northeast corner of Parcel No. ED-05- 077.05-04-35.00; thence running South 86 degrees 32 minutes West 282.39 feet parallel to the southerly line of the 10’ wide street to a point; thence running South 7 degrees 5 minutes East 5 feet to the southerly side of the 10’ wide street, being the point and place of beginning and containing 0.0324 acres (1,411.95 square feet) of land be the same more or less. The above described parcel of land shall be considered a public utility easement, reserving the rights of the City of Dover, their agents or assigns to free access for ingress and egress to these premises and every part thereof at all times for purpose of installing, maintaining and operating its existing public utilities. Adjacent to 45 South State Street (ED-05-077.05-04-33.00) Being a portion of that certain piece or parcel of land situated in the City of Dover, Kent County, State of Delaware, being an improved public street running in a west to east direction, located to the east of South State Street, said portion of street beginning at a point identified as the southwest corner of Parcel No. ED-05-077.05-04-33.00; thence running with Parcel No. ED-05-077.05-04-33.00 North 86 degrees 32 minutes East 173.5 feet along the northerly line of the 10’ wide street to the southeast corner of Parcel No. 05-077.05-04-33.00; thence running South 7 degrees 5 minutes East 5 feet crossing into said 10’ wide street to a point in the center of the street, opposite the southeast corner of Parcel No. 05-077.05- 04-33.00; thence running South 86 degrees 32 minutes West 173.5 feet parallel to the northerly line of the 10’ wide street to a point; thence running North 7 degrees 5 minutes West 5 feet, being the point and place of beginning and containing 0.0199 acres (867.5 square feet) of land be the same more or less. The above described parcel of land shall be considered a public utility easement, reserving the rights of the City of Dover, their agents or assigns to free access for ingress and egress to these premises and every part thereof at all times for purpose of installing, maintaining and operating its existing public utilities.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 11 Adjacent to ED-05-077.05-04-36.00 Being a portion of that certain piece or parcel of land situated in the City of Dover, Kent County, State of Delaware, being an improved public street running in a west to east direction, located to the west of South American Avenue, said portion of street beginning at a point identified as the southwest corner of Parcel No. ED-05-077.05-04-36.00; thence running with Parcel No. ED-05-077.05-04-36.00 North 86 degrees 32 minutes East 108.89 feet along the northerly line of the 10’ wide street to the southeast corner of Parcel No. 05-077.05-04-36.00; thence running South 7 degrees 5 minutes East 5 feet crossing into said 10’ wide street to a point in the center of the street, opposite the southeast corner of Parcel No. ED- 05-077.05-04-36.00; thence running South 86 degrees 32 minutes West 108.89 feet parallel to the northerly line of the 10’ wide street to a point; thence running North 7 degrees 5 minutes West 5 feet, being the point and place of beginning and containing 0.0125 acres (544.45 square feet) of land be the same more or less. The above described parcel of land shall be considered a public utility easement, reserving the rights of the City of Dover, their agents or assigns to free access for ingress and egress to these premises and every part thereof at all times for purpose of installing, maintaining and operating its existing public utilities. Section 2. The Council of the City of Dover will sit on Monday, February 10, 2014, at 7:30 p.m., in the Council Chambers at City Hall, Dover, Delaware, to hear the objections of such residents of the City or owners of the property affected as shall attend, in accordance with the provisions of Section 27 of the Charter of the City of Dover (Chapter 130, Volume 77, Laws of Delaware). Section 3. The Clerk of Council is hereby directed to post copies of this Resolution in five or more public places in the City of Dover. ADOPTED: JANUARY 27, 2014 TEA/NAES Report (November) The TEA/NAES Monthly Report for November 2013 was provided to members to enable them to monitor electric sales and revenues received, which will provide a better understanding of any fluctuations that occur and allow the opportunity to make improvements if deemed necessary. Referring to the Executive Summary on Page 1 of the report, Mr. Scott Koenig, City Manager, explained that the graph depicted that the City’s actual power supply costs through the first five (5) months of Fiscal Year 2014 had been tracking slightly higher than budgeted and stated that staff would continue to monitor this issue. He noted that the City’s actual load was tracking very close to what was anticipated with the new load numbers developed for Fiscal Year 2014. As indicated during the Committee meeting of December 9, 2013, Mr. Koenig stated that staff was very concerned about the reactive service charge related to a reallocation of costs within the PJM grid, which had affected a number of entities. He informed members that Mr. Robert Trinnear, Director of Risk Management and Financial Trading, The Energy Authority (TEA), was scheduled to attend the January 27, 2014 Committee meeting to discuss the issues associated with the charge. Referring to the YTD Variance Report on Page 12 of the report, Mr. Koenig noted that, so far this year, the City was running approximately $473,000 over budget for the total utilities cost. He expressed concern with this overage and indicated that staff was monitoring this issue, but that the cost was being driven by the reactive service charge. TEA and other effected entities have been in serious discussions

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 12 with PJM to determine why this cost is impacting these entities in this manner. Mr. Koenig explained his understanding that there were some changes to the cost formulas and allocations, and these increases seem to have been unexpected; however, he indicated that they are real charges which are unlikely to be readjusted. Mr. Koenig reiterated that staff would continue to monitor these costs since the adjusted revenues and load budgets for Fiscal Year 2014 are very tight. He stated that the City was steadily under budget every month last fiscal year. Mr. Blakeman expressed his appreciation for the inclusion of the alphabetical listing of the PJM charges and the addition of the summary of the accounts. The Committee recommended acceptance of the TEA/NAES Monthly Report for November 2013. By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson). Garrison Oak Technical Park Project Updates Members were provided the following updates: City Infrastructure Mr. Scott Koenig, City Manager, stated that the City was in the final processes of getting all of the approvals ready for the Garrison Oak Technical Park infrastructure. He noted that the City received an approval from the Delaware Department of Transportation (DelDOT) approximately one week ago and staff was wrapping up all of the final approvals so that the final plan package could be stamped as approved. Mr. Koenig explained that bids were received last week and staff was currently reviewing those bids; however, the bids appeared to be a little higher than anticipated and they were working to determine whether any value engineering could take place. In the near future, staff will be bringing these bids before Council either to request bid approval or a budget adjustment in order to bring the bids forward for approval. Calpine Energy Center Mr. Scott Koenig, City Manager, informed members that staff was continuing weekly conference calls with Calpine and construction seemed to be on schedule. Last week, Calpine indicated that all of the heavy hauls that were coming in by barge through Leipsic and being transferred down Route 9 and White Oak Road were completed. He stated that this had been a major concern for him and the successful completion of the deliveries was a major milestone. Mr. Koenig credited the contractors and all of the agencies associated with the move for the flawless completion of the deliveries. He noted that a number of deliveries remained, including some oversized deliveries, but that they would all be tractor trailer loads. Additionally, Mr. Koenig informed members that staff was finishing up the easement work for the radio transmission line, which will run from the Garrison Energy Center to the Cartanza Substation. The administrative plans for the water tower had been signed off on and staff expected construction to begin soon. He stated that a lot of construction activity was planned for this area, including Calpine and City

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 13 infrastructure, and there was also potential for Uzin Utz to start construction in the coming months. Mr. Koenig noted that The Energy Center was moving forward with the critical date of June 2015, when Calpine will transmit energy to the grid. In response to Mr. Blakeman, Mr. Koenig explained that the route for the radio transmission line had been laid out, staff had completed all of the easement preparation, as well as the appraisals of the easements, and had the official alignment. At this time, staff was only awaiting final signatures. Responding to Mr. Hutchison regarding construction of the water tower, Mr. Koenig stated that the whole contract was for approximately 400 days, so by the end of this year the tower should be ready for operation. Dover Sun Park Mr. Scott Koenig, City Manager, noted that members were provided a spreadsheet - Electric Revenue Fund, FY14 - White Oak Solar Park Incremental Cost, based on previous requests and comments. He advised members that the incremental Sun Park cost, from July through November, was $196,192. Mr. Koenig explained that the incremental Sun Park cost reflects the increased cost to the City as a result of using solar energy, compared to the amount that would have been paid if the City used regular fossil fuel. He stated that solar energy is necessary for the City to meet the demands under the regional portfolio standards, as well as to comply with the Governor’s legislation for renewables. While it is more expensive, it is performing as expected. By consent agenda, Mr. Slavin moved for acceptance of the Utility Committee Report, seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson). LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - JANUARY 13, 2014 The Legislative, Finance, and Administration Committee met on January 13, 2014 with Chairman Lynn presiding. Transfer of Davis Estate Donation to the Dover Library Foundation Mr. Scott Koenig, City Manager, explained that the Dover Public Library was an heir to the estate of Mrs. Sata Davis and a beneficiary of the Frank Davis Trust. The estate’s executor, Ms. Patricia Mercer, sent the Library’s portion of the estate and the trust, in the amount of $61,735.80, to the City of Dover and the funds were deposited in an escrow account. At the December 12, 2013 meeting of the Dover Library Foundation Board, members voted to request City Council to transfer the funds from the Davis Estate to the Dover Library Foundation to support its mission in accordance with its by-laws. Mr. Koenig stated that it was Deputy City Solicitor William Pepper’s opinion, upon reviewing the will, that the decedents’ intent was to benefit the Library. Mr. Koenig advised members that the topic of future donations was also discussed during the Dover Library Foundation Board meeting. He noted that all current fundraising uses the Dover Library Foundation as the beneficiary; however, it was believed that it was likely that the Dover Public Library would continue to be identified as a beneficiary for years to come. Dover Library Foundation members voted to direct the Library Director to work with the City Manager and Council liaison to craft a policy

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 14 to be proposed to the City Council to determine how future contributions to the Dover Public Library would be handled. Mr. Koenig indicated that a policy to address future donations would be presented for consideration once it could be drafted and reviewed. Mr. Koenig stated that the issue at hand was whether Dover City Council would like to retain the right to decide how the donated funds would be spent to benefit the Dover Public Library. The Foundation had requested that this large donation be transferred to the Foundation so that it could be made part of the endowment to benefit the Dover Public Library, in accordance with the resolutions that were adopted previously by City Council. (City Clerk’s Office Note: During the City Council meeting held on January 12, 2009, Council adopted Resolution No. 2009-03 which created the Dover Library Foundation, and during the City Council Meeting held on February 11, 2013, Council adopted Resolution No. 2013-04 which amended Resolution No. 2009-03 to allow management of Dover Library Foundation accounts and funds to be conveyed to the Foundation.) Mr. Koenig recommended that the proceeds of the Davis estate that were gifted to the Dover Public Library be transferred to the Dover Library Foundation, as requested by the Dover Library Foundation, and that a policy be drafted that will outline how future donations of this nature will be handled. Responding to Mr. Hare regarding how donations are currently managed, Mr. Koenig explained that if a gift were donated specifically to the Dover Library Foundation, the money would go to the Foundation and the by-laws of the Foundation would determine use of these funds; however, if the donation were made to the City of Dover to benefit the Library, the funds would come to the City of Dover. He stated that the donation under discussion was made to the “Dover Public Library,” which did not exist as a corporate entity; however, the intent of the gift was to benefit the library. Mr. Lynn noted that since the Dover Library Foundation is a relatively new entity, many wills and estate documents will reference the Dover Public Library versus the Dover Library Foundation. Mr. Lynn questioned if the Dover Library Foundation was a third-party, private entity. Responding, Mr. Koenig stated that it is a 501(c)(3) corporation and its creation was authorized by City Council. The Foundation has its own by-laws and governing board. Mr. Koenig explained that he and Ms. Margery Cyr, Library Director, serve on the Foundation’s Board. Mrs. Donna Mitchell, Controller/Treasurer, expressed concerns regarding the donation. She noted that the financial policies for the City require that any infrequent or non-recurring items go toward capital projects. She explained, for example, that donations received for parks and recreation have been designated for the Parkland Reserve Fund and donations for the Library have gone to the Library Reserve Fund that was started for construction of the library. The Davis bequest was received by the City and if Council chose to direct it to the Library, it would be transferred to the Library as a contribution. Mrs. Mitchell felt that the Dover Library Foundation’s request would not be in line with the City’s cash contribution financial policy. She stated her understanding that the Foundation would like to invest the funds for future capital and noted that this was exactly what the City would do with the same amount of money; however, if the City invested it for those needs, it would be under the auspices of the City’s investment policy. In addition, Mrs. Mitchell stated that giving funds to an outside entity could create controversy in light of the current challenging economic times.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 15 Mr. Slavin expressed his opinion that the City’s fiscal policies could not undo the will of those donating funds, noting that Council had taken the previous action of setting up the Library Foundation for the purpose of receiving donations and now found itself at a place where the “new world hasn’t caught up with the old world” in regard to how money was being donated. He felt that an exception to the financial policy could be made and reminded members that Council had the power to do so. In addition, Mr. Slavin stated that these funds would be invested for future capital needs. He stated his understanding that the funds would be placed in an endowment, which was vastly different from saying that they would be invested for the purpose of using them later for capital projects. Mr. Slavin noted that funds in an endowment would be invested and the purpose of the endowment would not legally allow them to be touched. He indicated that if the endowment were set up with the Delaware Community Foundation, the corpus of the endowment would be prevented from being raided for any purpose, noting that he would be much more comfortable with this arrangement than placing the funds inside the City government. The Delaware Community Foundation, through its board of directors, could then determine what percentage of the interest could be used for the projects that they determine. Mrs. Mitchell expressed her understanding that Council had the right to make exceptions. She explained that the Davis will was developed in 2012 and the Library Foundation was in existence prior to that; therefore, she felt that no one present could know the donors’ intent. Mr. Slavin reminded members that Mr. William Pepper, Deputy City Solicitor, had reviewed the will(s) and provided a legal opinion regarding the intent. Mrs. Mitchell stated that Mr. Pepper’s opinion was that the funds could be transferred to the Foundation but she was unsure if this was the donor’s intent. Responding to Mr. Lynn, Mrs. Mitchell confirmed that if the donation went to the City, the City would be a “flow-through entity” for the funds and there would be no adverse tax consequences. Mr. Hare expressed his opinion that when funds are bequeathed to the Dover Public Library, these funds should go to the Dover Library Foundation unless they are designated for a specific purpose, such as to purchase new computers. Mrs. Mitchell stated that if this approach were taken, she would prefer that Council make it clear that any similar donations in the future would go to the Delaware Community Foundation. Mr. Hare stated that this should be in the policy unless a specific purpose is identified in the bequest. Mrs. Mitchell stated her concurrence if this was Council’s desire. Mr. Shevock suggested that when an individual or organization notifies the City that funds will be bequeathed, that the City advise those involved to make the check out properly to eliminate the need to come before Council. Mrs. Mitchell noted that the City was unaware that this donation was pending. She suggested that if the City receives a check for the Dover Public Library, Mrs. Margery Cyr, Library Director, could provide clarification regarding how the donor wished the funds be used.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 16 Responding to Mr. Slavin, Mrs. Mitchell confirmed that the City could manage any funds received by the Foundation that were not specifically directed to the endowment. Mr. Lynn noted that the City was still ultimately responsible for capital improvements and would continue to need funds relative to capital improvement projects separate from the Foundation. Mrs. Mitchell confirmed this, however, she noted that the Foundation can always partner with the City on those improvements. Mrs. Mitchell stated that there were no restrictions regarding the funds mentioned in the will. The Committee recommended acceptance of the donation from the Davis estate in the amount of $61,735.80 and that it be transferred to the Dover Library Foundation. Mr. Slavin moved that any future donations made to the City for the Dover Public Library, unless otherwise specifically cited, be transferred to the Dover Library Foundation. The motion was seconded by Mr. Hare. Mr. Lynn advised members that the Dover Library Foundation was already contemplating an omnibus policy on this point and suggested that members wait to see what the Foundation had to say on this matter before proceeding. Mr. Rushe noted that the second part of staff’s recommendation was that the City Manager draft a policy that will outline how future donations of this nature would be handled. Mr. Slavin withdraw his motion and Mr. Hare concurred. Mr. Rushe moved to table the issue of the policy on future donations to the Dover Public Library until such time as the City Manager can meet with the necessary people to recommend a policy and that this policy be brought back to the Committee. The motion was seconded by Mr. Shevock. Mr. Slavin encouraged staff to develop a “clean” process that is not confusing and that this be accomplished quickly since there was an audience of foundations and potential givers. Responding to Mr. Lynn, Mr. Koenig stated his desire to return to the Dover Public Library Foundation to discuss the policy, which would be reviewed by Mr. Lynn as the Council liaison for the Foundation. He expected that it would return to the Committee by their meeting scheduled in approximately 30 days, or by the meeting scheduled subsequent to that date. Mrs. Margery Cyr, Library Director, stated that this matter could be considered by the Dover Library Foundation and their response could be provided within 30 days. Mr. Lynn suggested that information could be provided in the Dover Library Foundation newsletter to clarify that potential donors should make the distinction in estate documents regarding the recipients of donations. Responding to Mr. Slavin, Ms. Cyr confirmed that the Dover Library Foundation was a 501(c)(3) organization.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 17 The Committee tabled the issue of the policy on future donations to the Dover Public Library until such time as the City Manager can meet with the necessary people to recommend a policy for review by the Committee. By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation to accept the donation from the Davis estate in the amount of $61,735.80 and that it be transferred to the Dover Library Foundation. The motion was seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson). Proposed Plan to Cover Dangerous Building Demolition Costs Mr. Scott Koenig, City Manager, advised members that, in an effort to improve the quality of life in various neighborhoods throughout the City, staff had placed a continuous effort on the removal of dangerous buildings. He noted that the FY 2014 had been very active and the City had spent or committed as much as $175,000 toward demolition efforts. Since the original budget was $140,000 for these efforts during FY 2014, Mr. Koenig proposed adjusting the budget to continue the demolition actions through the remainder of the fiscal year. He noted that the estimated demolition expenses for FY 2014 were $250,000. Mr. Koenig stated that the $110,000 shortfall in the demolition budget could be made up by transferring $20,000 in unused salary and benefits from the Planning Office to the demolition budget and the remainder could come from other General Fund division personnel budgets. These funds were available due to a Planner II position being vacant for approximately four (4) months, as well as other vacancies in various General Fund divisions. Mr. Koenig reviewed the requested amendment and prior history of the City of Dover Demolition Program. He advised members that Mrs. Ann Marie Townshend, Director of Planning and Community Development, expected the demolition budget request for FY 2015 to be in the range of $150,000 - $175,000. Mr. Koenig explained that the request was necessary because the City Manager did not have the authority to amend or adjust the 10 Series budgets for open salaries to move it down into the 20 and 30 series for operating expenses and Council action would be required to adjust these budgets. Mr. Koenig requested that the City Manager be authorized to transfer unused salary and benefits in the amount of $20,000 from the Planning Division, as well as from other General Fund divisions throughout the City, to the demolition budget, which would increase the demolition budget from $140,000 to $250,000 for FY 2014. Responding to Mr. Shevock, Mr. Koenig noted that the sale of the property does not typically happen in the same fiscal year that the demolition occurs. The City goes through the demolition process and places a lien against the property. He noted that it is sometimes two (2) to three (3) years before funds are received. Mr. Koenig estimated that the City had received approximately $80,000 - $90,000 per year in demolition receipts. He stated that some demolition expenses had been written off in the past because properties had been transferred to Central Delaware Habitat for Humanity. For practical purposes, demolitions are only considered as an expense. If revenue is recovered, it is considered a bonus. Mr. Koenig estimated the percentage of return at 50% or less.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 18 In response to Mr. Lynn, Mr. Koenig stated that $20,000 would come from the Planning Department and the remaining $90,000 would come from other General Fund budgets, such as Public Works. He stated that he would be reviewing each of the General Fund division budgets and would develop an amendment. Mr. Koenig stated that he would make every effort to have the funding identified before the matter comes before Council on January 27, 2014. The Committee recommended approval of staff’s recommendation to authorize the City Manager to transfer unused salary and benefits in the amount of $20,000 from the Planning Division, as well as from other General Fund divisions throughout the City, to the demolition budget, which would increase the demolition budget from $140,000 to $250,000 for FY 2014. By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson). Proposed Ordinance #2014-01 - Amendment to Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes; Appendix C - Downtown Redevelopment, Article II - Definitions and Article III - Eligibility; and Appendix E - Commercial and Industrial Building Redevelopment, Article II - Eligibility Mr. Scott Koenig, City Manager, explained that the City offers incentives to certain qualifying industries, businesses, and homeowners to expand or locate within the limits of the City, and business and property owners to improve their properties. Tax abatement incentives are offered to certain qualifying industries and businesses to expand or locate in the City, and persons purchasing residential real property (where they will reside) within a designated area. Additionally, in the Downtown Redevelopment Target Area, eligible projects may receive a full waiver of building permit fees, a full waiver of City impact fees (for multi-story mixed use development), and abatement of the property taxes on the improvements for a period of ten years. For commercial and industrial buildings, where there are renovations to establish a new business, projects may receive a 50% reduction in building permit fees, a 50% reduction in any applicable City impact fees, and abatement of the property taxes on the improvements for a period of ten years. In recent years, some of the beneficiaries of these incentives have become delinquent on City taxes and there is no mechanism to revoke the outstanding incentives if property owners are delinquent. The proposed amendments would require compliance with the City’s Clean Hands Ordinance and provide for the revocation of approved but unrealized incentives if the beneficiary of the incentives becomes delinquent on obligations owed to the City. The proposed amendments reference and are consistent with the City Clean Hands Ordinance, which prevents the City from issuing permits or establishing services for property owners who are delinquent on obligations to the City. The proposed ordinance would also make tax exempt properties ineligible for the incentives. Staff recommended adoption of Proposed Ordinance #2014-01. The Committee recommended adoption of Proposed Ordinance #2014-01, as recommended by staff.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 19 By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson). (The First Reading of the ordinance will take place during the latter part of the meeting.) Request for Infrastructure Reimbursement - Wesley College Mr. Scott Koenig, City Manager, stated that he had been working with Dr. William Johnston, President, over the past several months on project closeout issues associated with redevelopment around Wesley College. In December of 2012, the Dover City Council approved a construction contract in the amount of $96,411.75 with Corrado Construction, Co., to construct the Wesley College Streetscape Enhancement - Phase I. The project was funded by a Community Transportation Funds agreement in the amount of $148,604. In September 2013, City Council approved a final change order on the project, which increased the total project cost to $125,574.34. In December of 2013, the City Manager received a request from Wesley College to be reimbursed for work that was completed within the City’s North State Street Alley West right-of-way. This work was originally planned to be included in Phase I of the Streetscape Enhancement; however, scheduling conflicts between the College and the City prevented this work from being included in the scope of work for the Streetscape Enhancement - Phase I. The City Manager and officials from Wesley College have met with representatives from the Delaware Department of Transportation (DelDOT) to determine whether these costs could be added to the Community Transportation Fund agreement; however, the expenses occurred before the agreement was signed; therefore, these expenses cannot be added to the current agreement. Senator Colin Bonini has indicated that he is willing to fund other public improvements within the City in an amount at least equal to the requested reimbursement; therefore, the City of Dover would not incur a net expense on the reimbursement. There are a number of sidewalk projects in the downtown area that can be funded using Community Transportation Funds. The City Manager requested authorization from City Council to reimburse Wesley College for the expenses incurred in the City’s right-of-way ($24,500 per letter dated December 20, 2013) provided Community Transportation Funds in an amount equal to or greater than $24,500 can be secured from area legislators to replace the funding associated with the reimbursement. The reimbursement will be issued using General Fund dollars associated with the City’s Concrete Construction and Replacement Program (Project # ST1402). Mr. Koenig stated that several sidewalk projects had been identified and were being estimated by staff to be forwarded to the legislators for funding and this reimbursement is tied to Community Transportation Funds. Mr. Shevock questioned if the City would wait to obtain the funds from Senator Bonini before reimbursing Wesley College. Mr. Koenig stated that he would wait until he received a commitment on the agreements. He stated that 10% of the funds would be received when the agreement is signed and the rest of the agreement funds are typically received once an expense is incurred. Mr. Bonar commended Mr. Koenig for working with the legislative contingent on suburban street funds, noting that many infrastructure issues and projects would have to be addressed in the next several months and the next fiscal year. He encouraged staff to keep an open dialogue and respond to their requests in a timely fashion.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 20 The Committee recommended authorizing the City Manager to reimburse Wesley College for the expenses incurred in the City’s right-of-way, in the amount of $24,500 per letter dated December 20, 2013, provided that Community Transportation Funds in an amount equal to or greater than $24,500 can be secured from area legislators to replace the funding associated with the reimbursement. The reimbursement will be issued using General Fund dollars associated with the City’s Concrete Construction and Replacement Program (Project # ST1402). By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson). Proposed Grant-In-Aid Policy Mrs. Donna Mitchell, Controller/Treasurer, advised members that, based on the requests of some members of Council, she developed a Grant-In-Aid policy. She noted that she had followed the State’s policy and modified it to meet the City’s parameters. Mrs. Mitchell advised members that if the policy were adopted, all of the documents included would merely have to be modified. Mrs. Mitchell reviewed the presentation entitled City of Dover FY 20XX - Grant-In-Aid Instructions. Referring to Form 9 - Signature Page, she stated that Council would need to make a determination if they wished to specify the signature requirements for the policy. She noted that Item # 5 on Form 9 specifies “That this organization meets the criteria established and uses any Grant-In-Aid appropriated by the City Council in accordance with those provisions and any additional restrictions that may be set forth in the Grant-in-Aid policy.” She noted that Council would need to establish this criteria. In addition, in regard to Form 10, she indicated that the State requires that a copy of the most recent audit prepared by a certified public accountant or public accountant accompany the application but allows for substitution of Sample Forms A-B-C. She indicated that Council should make a decision in this regard as well. She noted that Council would also have to determine the timeline for applications, by whom they are reviewed, and the dates for submission in relation to the timing of the budget. Mr. Slavin expressed appreciation for Mrs. Mitchell’s efforts in developing the policy. He questioned if the City was obligated to have a Grant-In-Aid program. He stated that City could send out instructions stating that applications were not being invited this year because of current fiscal constraints; however, it would prepare the City for this to be done in the future and ensure that there would be a “level playing field” for applicants. He noted that there had been criticism about the way in which some organizations had received funds in the past and others did not. Mr. Lynn, noting that there was a provision in the policy that requires any entity applying for a grant to supply an audit, asked if this language was in the State’s policy. Responding, Mrs. Mitchell confirmed that it was. She also noted that the language allowed for a compilation statement by a certified public accountant or independent public accountant to be submitted in lieu of a copy of an audit with a management letter. Mr. Hare questioned if this policy would preclude a “walk-in” applicant from requesting Grant-In-Aid funds. Responding, Mr. Slavin stated that the policy would create a uniform process for all applicants. Mrs. Mitchell stated that if the Committee was in favor of the policy, she could incorporate dates and send out a notice indicating whether or not the City would be receiving applications.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 21 Mr. Lynn asked if the entities that the City had historically provided funds to, such as the African American Festival and the Fourth of July Committee, would have to fill out the application in the future if the policy were adopted. Responding, Mrs. Mitchell stated that it would be Council’s decision whether to grandfather those entities in. Mr. Hare felt that these organizations should fill out the form at least the first time so that an audit would be provided. Mr. Slavin stated that, at the State level, there was a moratorium on receiving new applications; therefore, only existing recipients of Grant-In-Aid could submit applications for a particular year. Responding to Mr. Lynn, Mrs. Mitchell stated that these funds had been granted previously after being budgeted and approved by Council through the request of Council. Mr. Slavin suggested that consideration of how Grant-In-Aid should be handled during the upcoming fiscal year should be included in the annual budget discussions. Mrs. Mitchell suggested that this could be included in the Council Workshop being scheduled in March to discuss budget matters. Mr. Bonar stated that the deadline for State Grant-In-Aid applications is November of each year so that they can be included in budget discussions. Noting that the City was already well into the budget process, he recommended that, starting with next fiscal year, applications be submitted no later than November 1st or November 15th, whichever Mrs. Mitchell deemed necessary. He concurred with Mr. Hare that all entities should submit an application and Mrs. Mitchell suggested that this also be discussed at the March Workshop. The Committee recommended acceptance of the City of Dover FY 2015 Grant-In-Aid Application and procedures. By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation for acceptance of the City of Dover FY 2015 Grant-In-Aid Application and Procedures (Exhibit #4). The motion was seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson). By consent agenda, Mr. Slavin moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mr. Dixon and carried by a roll call vote of seven (7) yes (Dixon, Lynn, Slavin, Williams, Hare, Hutchison, and Bonar), one (1) no (Perza), and one (1) absent (Anderson). UTILITY COMMITTEE REPORT - JANUARY 27, 2014 The Utility Committee met on January 27, 2014 with Chairwoman Williams presiding. Except for the following time sensitive issues, the Committee Report from January 27, 2014 will be presented to Council during their Regular Meeting of February 10, 2014 for review and consideration. Permanent Easement and Temporary Workspace Agreements - Eastern Shore Natural Gas Mr. Scott Koenig, City Manager, reviewed staff’s request for the City to execute a permanent easement and temporary workspace agreements with Eastern Shore Natural Gas (ESNG), to allow ESNG to construct a 16" natural gas pipeline to service the Garrison Energy Center (GEC). He stated that this

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 22 project was necessary to provide high pressure gas to the Calpine facility and the Garrison Tract. Staff had been working with ESNG and their engineers to identify the easement areas and complete the necessary documentation to allow ESNG to begin construction immediately. Staff recommended authorizing the City Manager or his designated staff to execute the easement agreement and other necessary agreements with Eastern Shore Natural Gas (ESNG) to facilitate the construction of the proposed 16" natural gas pipeline across lands owned by the City of Dover, as depicted in the referenced agreements. Financial consideration for the easements shall be delegated to the City Manager and the City Manager will notify City Council of the results. Mr. Koenig noted that the staff was still working on the financial consideration for the easements but estimated an approximate cost of $700 per acre. In response to Mrs. Williams, Mr. Koenig stated that one (1) of the easements was approximately three-quarters of an acre and there was not a large amount of land in total. Responding to Mr. Slavin, Mr. Koenig explained that this item would be considered by Council at the meeting being held later in the evening in order to allow ESNG to begin construction immediately. ESNG had originally anticipated starting construction in Cheswold and working south to the GEC; however, due to the scheduled Firefly Music Festival and NASCAR race at Dover Downs, ESNG decided to invert the construction time line to begin at the GEC. In response to Mr. Perza, Mr. Koenig stated his opinion that it was not necessary for the Committee to specifically allocate an amount for the easement. The standard used for other easements at the GEC was $700. Mr. Blakeman moved to recommend approval of staff’s recommendation to authorize the City Manager or his designated staff to execute the easement agreement and other necessary agreements with Eastern Shore Natural Gas (ESNG) to facilitate the construction of the proposed 16" natural gas pipeline across lands owned by the City of Dover, as depicted in the referenced agreements, and to delegate financial consideration for the easements to the City Manager, with the City Manager to notify City Council of the results, seconded by Mr. Snaman. Responding to Mayor Carey, Mr. Koenig stated that pictures were taken of the area to ensure restoration; however, video was not use. He assured members that the area would be documented prior to construction. The Committee recommended approval of staff’s recommendation to authorize the City Manager or his designated staff to execute the easement agreement and other necessary agreements with Eastern Shore Natural Gas (ESNG) to facilitate the construction of the proposed 16" natural gas pipeline across lands owned by the City of Dover, as depicted in the referenced agreements, and to delegate financial consideration for the easements to the City Manager, with the City Manager to notify City Council of the results. Mrs. Williams moved for approval of the Committee’s recommendation, seconded by Mr. Hutchison and carried by a roll call vote of six (6) yes (Dixon, Perza, Williams, Hare, Hutchison, and Bonar), one (1) no (Lynn), one (1) abstention (Slavin), and one (1) absent (Anderson).

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 23 Easements and Rights-of-Way between City of Dover and Delmarva Power & Light Company Mr. Scott Koenig, City Manager, reviewed staff’s request to grant a series of easements and rights-of-way for the radial line from the Garrison Energy Center (GEC) to the Cartanza Substation. He noted a correction to the documentation provided in the Committee Action Form (CAF), dated January 22, 2014, related to this item. Although the CAF indicated that Document “A”, Document “B”, and Document “C” would grant easements and rights-of-way to Delmarva Power & Light Company (DP&L), he explained that Document “A” and Document “B” would grant easements to DP&L but that Document “C” was the original easement to the GEC which will subsequently be turned over to DP&L at some point in the future. Staff recommended authorizing the City Manager to execute the final versions of all components of Document “A” and Document “B”, which are easements to DP&L, as well as Document “C”, the original easement to the GEC which will subsequently be turned over to DP&L at some point in the future after construction, for the granting of easements and rights-of-way to both DP&L and the GEC for the proposed construction, operation, and maintenance of power lines and structures associated with the transmission of electric power from the GEC to the Cartanza Substation; and authorizing the City Manager to amend the original lease between the City of Dover and the Garrison Energy Center, LLC to add the acres described within the documents (a total of 8.4301 acres) in accordance with the rents described in the lease. Mr. Koenig advised members that instead of being paid for the easements, the City Manager would amend the master lease with the GEC to include the easement areas as part of leased land, so that the City would be financially compensated for it throughout the agreement period with GEC. Responding to Mr. Blakeman, Mr. Koenig stated his understanding that DP&L would own and be responsible for maintenance to the radial line from Calpine to the Cartanza Substation. In response to Mrs. Williams, Mr. Koenig stated that the voltage for the radial line would be 230kV. Responding to Mr. Hutchison, Mr. Koenig stated that construction of the 16" gas line, the GEC, and the radial line was scheduled for completion by the end of 2014. The GEC was expected to produce power to the PJM (Pennsylvania, Jersey, Maryland Power Pool) grid in June 2015. The Committee recommended approval of staff’s recommendation to authorize the City manager to execute the final versions of all components of Document “A” and Document “B”, which are easements to Delmarva Power and Light (DP&L), as well as Document “C”, the original easement to the Garrison Energy Center (GEC) which will subsequently be turned over to DP&L at some point in the future after construction, for the granting of easements and rights-of-way to both DP&L and the GEC for the proposed construction, operation, and maintenance of power lines and structures associated with the transmission of electric power from the GEC to the Cartanza Substation; and to authorize the City Manager to amend the original lease between the City of Dover and the Garrison Energy Center, LLC to add the acres described within the documents (a total of 8.4301 acres) in accordance with the rents described in the lease. Mrs. Williams moved for approval of the Committee’s recommendation, seconded by Mr. Dixon and carried by a roll call vote of six (6) yes (Dixon, Perza, Slavin, Williams, Hare, and Hutchison), one (1) no (Lynn), one (1) abstention (Bonar), and one (1) absent (Anderson).

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 24 The Utility Committee Report was accepted by unanimous consent. QUARTERLY REVENUE REPORT Mr. Scott Koenig, City Manager, reviewed the Quarterly Revenue Report as of December 31, 2013, in the absence of Mrs. Mitchell, Controller/Treasurer. Mr. Slavin noted that, although the transfer tax appears to be tracking toward $1.1M, the budget estimate was previously reduced by $215,000. Mr. Slavin moved for acceptance of the report, seconded by Mr. Hutchison and unanimously carried. EVALUATION OF BIDS - GARRISON OAK TECHNICAL PARK SANITARY SEWER IMPROVEMENTS Mr. Scott Koenig, City Manager, advised members that this project is described as three (3) phases of work, the first phase is generally described as, the removal and replacement of existing pipe, equipment and controls within existing Pump Station No. 5 including pump replacements, control replacement, SCADA integration and associated work. The second phase is generally described as, construction of a new pre-packaged pump station (Pump Station No. 14R) and force main including the complete pump station facility, SCADA integration, and horizontal direction drill and open cut force main construction using HDPE and ductile iron pipe. The third phase is generally described as, demolition and abandonment of existing Pump Station No. 14 including removal of equipment, controls, and piping; abandonment of piping and structures; and restoration of pump station area. All work will be paid for at the unit prices bid for work completed and accepted by the City of Dover. The total work authorized under this contract will not exceed the available funding. Three (3) contractors submitted unit price bids for the proposed work to be performed. Based on the proposed quantities, the estimated contract values are as follows: Contractor Location Bid Price Evaluated Bid Price Eastern States Construction Wilmington, DE $2,528,603.00 $2,528,603.00 George & Lynch, Inc. Dover, DE $2,572,065.00 $2,494,903.05* Teal Construction Dover, DE $2,798,780.00 $2,714,816.60* * = Evaluated Bid, based on Local Vendor Preference George & Lynch Inc. submitted all of the contractor’s qualification information, including a list of recently completed projects similar in scope and a financial statement. All were found to be adequate. Responding to Mr. Slavin, Mr. Koenig stated that the evaluated bid price represents a 3% reduction for local vendor preference. Staff recommended awarding a unit price contract for the Garrison Oak Technical Park Sanitary Sewer Improvements to George & Lynch Inc., in response to City of Dover Bid #14-0018PW, for the amount not to exceed $2,572,065. Mr. Hutchison moved for approval of staff’s recommendation, seconded by Mrs. Williams and carried by a unanimous roll call vote (Anderson absent).

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 25 EVALUATION OF BIDS - GARRISON OAK TECHNICAL PARK SUBDIVISION Mr. Scott Koenig, City Manager, advised members that this work is generally described as furnishing all labor, equipment and materials necessary to grade and install approximately 6,500 linear feet of new road and associated curb and sidewalk, 54 catch basins, 25 storm drain manholes, 9,000 linear feet of storm drain pipe, 41 sanitary manholes, 8,000 linear feet of sanitary sewer, 6,535 linear feet of water main, 12 fire hydrants and 14 water services. In addition, the bid package includes drainage improvements, earthen swales, and the creation of two (2) new storm water management areas and two (2) new road entrances onto White Oak Road. The two (2) new entrances include 100 square yard inches of pavement milling, 50 square yards of Type C overlay, 2,250 square yards of full depth road construction, 1,200 linear feet of curb and the application of tack coat. All work will be paid for at the unit prices bid for work completed and accepted by the City of Dover. This project is utilizing the funding sources that are being utilized with other projects related to this development. The water account is also being used to construct the Garrison Water Storage Tank (1.5 MG). The wastewater account is also being used to construct the Garrison Oak Technical Park Sanitary Sewer Improvement project. Mr. Koenig explained that this expenditure would exceed the budgeted amount and that he proposed to address the funding as follows: Amount Budget Method of Infrastructure Required Remaining Shortfall Balancing Water $876,605 $534,700 $(341,905) Transfer FY15 Water Quality Imp. monies Wastewater $815,952 $396,261 $(419,691) Transfer unused FY14 I & I monies Street/Storm Sewer/ Landscape $4,522,143 $1,665,725 $(2,856,418) Low Interest Loan - Electric Reserves (Funding Source being reviewed) Six (6) contractors submitted unit price bids for the proposed work to be performed. Based on the proposed quantities, the estimated contract values are as follows: Contractor Location Amount of Bid Evaluated Bid Price A-Del Construction Co. Newark, DE $6,214,700.00 $6,214,700.00 Diamond Materials LLC Wilmington, DE $7,512,533,25 $7,512,533.25 Dixie Construction Co. Georgetown, DE $6,329,221.10 $6,329,221.10 Eastern States Construction Wilmington, DE $7,969,255.40 $7,969,255.40 George & Lynch, Inc. Dover, DE $8,131,211.71 $7,887,275.36* Daisy Construction Newport, DE $7,367,820.55 $7,367,820.55 * = Evaluated Bid, based on Local Vendor Preference A-Del Construction Company submitted all of the contractor's qualification information, including a list of recently completed projects similar in scope, as well as a financial statement that were all found to be adequate. Responding to Mrs. Williams, Mr. Koenig stated that the $2M difference in the bid amounts could be attributed to availability and work scheduling. He also noted that the details of the loan repayment had not yet been worked out; however, he speculated that it may be a 10-year loan.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 26 Responding to Mr. Slavin, Mr. Koenig stated that the original bids for this project, which were obtained in April 2011, did not include some of the design parameters that are driving the cost of the infrastructure. The Garrison site plan includes a 618MW facility and they are currently building 309MW. For engineering purposes, the infrastructure must be designed as if the complete build-out of the project were in place. He noted that the design parameters that are driving the size of the water tower and the pump station are anticipating the full build-out of the park. Mr. Koenig stated that the size of the water tower has grown and the necessary improvements to the sanitary sewer system, including the size of the pump station associated with Garrison has grown. He noted that they are doing work at White Oak #5 in the amount of $1M and there have been a number of discussions with DelDOT regarding the entrance requirements and those costs have been included in the infrastructure costs. Also included are engineering and design work related to the floodplain. Mr. Koenig advised members that they are proposing to install all of the sidewalks and landscaping that is associated with the improvements to the right-of-way. Responding to Mr. Slavin, Mr. Koenig stated that the FY 2015 Water Quality Improvement funds would be available on July 1, 2014. He noted that $1M is identified per year for water quality improvements as part of the baseline budget and it is then broken down into various projects. Mr. Slavin asked how the $419,691 transfer from the I&I improvements would impact the fees paid to Kent County. Mr. Koenig stated that it is a systemic problem and that it would impact the budget in future years. Responding to Mr. Slavin, Mr. Koenig stated that he did not think a low interest loan from the electric fund would be unprecedented. Mr. Hutchison asked if there were any other future obligations related to this project. Mr. Koenig stated that there would be a final modification to the Becker Morgan contract to include a Conditional Letter of Map Revision (CLOMR) for the floodplain; the relocation of four (4) 69kV electric poles along the road; and, once the next tenant is secured, a potential traffic study to determine necessary future improvements to White Oak Road. Responding to Mrs. Williams, Mr. Koenig stated that the water tower size was based on Calpine’s service requirements and the need to maintain water pressure under heavy demand. He noted that once the gas and steam components are in place, the combined electrical generation capability will be 618MW and the projected revenue from water consumption is $2.1M. Noting the variance in the budgeted project amount and the resultant bids, Mr. Perza asked if the City may have missed anything in their estimation. Mr. Koenig responded that the estimating numbers used were prepared by EDiS, a third-party construction manager. Mr. Perza asked if the City updates budget estimates with the EDiS numbers for future planning. Mr. Koenig stated that, in his opinion, the costs, other than design changes, are fixed and there are now very few unknowns. Going forward, he agreed that substantially more time and effort would need to be spent on project estimating to ensure that the internal numbers are correct. Mr. Perza emphasized the need to review the numbers for this project and cautioned against ending up in the position of having to borrow against ourselves in the future.

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 27 Staff recommended awarding a unit price contract for the Garrison Oak Technical Park to A-DEL Construction Company, in response to City of Dover Bid #14-0020PW, for the amount not to exceed $6,214,700. Mrs. Williams moved for approval of staff’s recommendation, seconded by Mr. Hutchison and carried by a roll call vote of five (5) yes (Slavin, Williams, Hare, Hutchison, and Bonar), three (3) no (Dixon, Lynn, and Perza), and one (1) absent (Anderson). CONFIRMATION OF POLICE PENSION ELECTION - RET. LT. TIMOTHY MULLANEY - THREE (3) YEAR TERM TO EXPIRE JANUARY 31, 2017 The term of office of Retired Lieutenant Timothy Mullaney on the Police Pension Board expires on January 31, 2014. Pursuant to Chapter 62 - Law Enforcement, Article III - Pension Plan, Division 2 - Retirement Committee, Section 62-102(c)(2), notice of an election was given to all plan members. Only one (1) nomination was received, therefore, no election was held. Chief Hosfelt nominated Retired Lieutenant Timothy Mullaney to serve a three (3) year term, to expire on January 31, 2017. By consent agenda, Mr. Slavin moved for approval of the nomination of Retired Lieutenant Timothy Mullaney to serve on the Police Pension Board, for a three (3) year term to expire on January 31, 2017. The motion was seconded by Mr. Dixon and carried by unanimous roll call vote (Anderson absent). REZONING REQUEST/FIRST READING OF PROPOSED ORDINANCE #2014-02 - PROPERTY LOCATED AT 405 NORTH STATE STREET, OWNED BY DAVID AND SUSAN EDGELL A request was received to rezone property located at 405 North State Street, consisting of 11,250+/- square feet, owned by David and Susan Edgell. The property is currently zoned R-8 (One Family Residence) and the proposed zoning is RG-1 (General Residence). Prior to amending the zoning ordinances and zoning map of the City of Dover, a public hearing is required. Mr. Slavin moved to refer the request to the Planning Commission for a public hearing on February 18, 2014 and to set a public hearing before City Council on March 10, 2014 at 7:30 p.m. The motion was seconded by Mr. Lynn and unanimously carried. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of Proposed Ordinance #2014-02 as read by the City Clerk, by title only, as follows: % PROPOSED ORDINANCE #2014-02 AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 405 NORTH STATE STREET FIRST READING - PROPOSED ORDINANCE #2014-03 AMENDING THE 2008 COMPREHENSIVE PLAN, AS AMENDED Council President Bonar reminded the public that copies of the Proposed Ordinances are available at the entrance of the Council Chambers or can be obtained from the City Clerk's office. Since the ordinance

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 28 amends the Comprehensive Plan, a public hearing is required. Staff recommended referral of the amendment to the Planning Commission on Tuesday, February 18, 2014 at 7:00 p.m., and that a public hearing take place during the Council Meeting of Monday, March 10, 2014, at 7:30 p.m., at which time final action by Council will take place. Mr. Hutchison moved to refer the request to the Planning Commission for a public hearing on February 18, 2014 and to set a public hearing before City Council on March 10, 2014 at 7:30 p.m. The motion was seconded by Mr. Hare and unanimously carried. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Proposed Ordinance, as read by the City Clerk, by title only, as follows: % ORDINANCE #2014-03 AMENDING THE 2008 COMPREHENSIVE PLAN, AS AMENDED, BY INCLUDING TEXT ADDENDA TO THE TRANSPORTATION AND HOUSING AND COMMUNITY DEVELOPMENT CHAPTERS AND BY AMENDING MAP 12-1: LAND DEVELOPMENT PLAN MAP IN THE VICINITY OF COLLEGE ROAD AND MCKEE ROAD FIRST READING OF PROPOSED ORDINANCE #2014-04 - REZONING REQUEST FOR PROPERTY LOCATED AT 1205 MCKEE ROAD A request was received to rezone property located at 1205 McKee Road, consisting of 3.46+/- acres, owned by College Road Offices, LLC. The property is currently zoned CPO (Commercial Professional Office), subject to COZ-1 (Corridor Overlay Zone) and the proposed zoning is C-2A (Limited Central Commercial), subject to COZ-1 (Corridor Overlay Zone). Prior to amending the zoning ordinances and zoning map of the City of Dover, a public hearing is required. Mr. Hutchison moved to refer the request to the Planning Commission for a public hearing on February 18, 2014 and to set a public hearing before City Council on March 10, 2014 at 7:30 p.m. The motion was seconded by Mrs. Williams and unanimously carried. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of Proposed Ordinance #2014-04 as read by the City Clerk, by title only, as follows: % PROPOSED ORDINANCE #2014-04 AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 1205 MCKEE ROAD FIRST READING - PROPOSED ORDINANCE #2014-01 Council President Bonar reminded the public that copies of the proposed ordinance are available at the entrance of the Council Chambers or can be obtained from the City Clerk's office. Final action by Council on the proposed ordinance will take place during the Council meeting of February 10, 2014. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of Proposed Ordinance #2014-01 as read by the City Clerk, by title only, as follows:

CITY COUNCIL MEETING OF JANUARY 27, 2014 PAGE 29 % PROPOSED ORDINANCE #2014-01 AMENDING CHAPTER 102 - TAXATION, ARTICLE IV - ABATEMENT OF REAL ESTATE TAXES; APPENDIX C - DOWNTOWN REDEVELOPMENT, ARTICLE II - DEFINITIONS AND ARTICLE III - ELIGIBILITY; AND APPENDIX E - COMMERCIAL AND INDUSTRIAL BUILDING REDEVELOPMENT, ARTICLE II - ELIGIBILITY FINAL READING - PROPOSED ORDINANCE #2013-18 - BUDGET AMENDMENTS FOR FISCAL YEAR 2013/14 The First Reading of the ordinance was accomplished during the Council Meeting of January 13, 2014. Mr. Hare moved that the Final Reading of the proposed ordinance be acknowledged by title only, seconded by Mr. Hutchison and unanimously carried. By motion of Mr. Hutchison, seconded by Mr. Hare, Ordinance #2013-18 (Exhibit #5) was adopted by a unanimous roll call vote (Anderson absent). COUNCIL MEMBERS’ ANNOUNCEMENTS There were no Council Members’ announcements. By unanimous consent, the meeting adjourned at 8:36 p.m. TRACI A. McDOWELL CITY CLERK All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of January 27, 2014, are hereby approved. CARLETON E. CAREY, SR. MAYOR /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Council-Minutes\2014\01-27-2014.wpd Exhibits Exhibit #1 - SAC 2014 East-Side Assessment Report Exhibit #2 - Purpose, Scope, and Intent of Task Force Exhibit #3 - Presentation - Violation of Dangerous Building Ordinance - 27 North New Street Exhibit #4 - City of Dover FY 2015 Grant-In-Aid Application and Procedures Exhibit #5 - Ordinance #2013-18 - Budget Amendments for Fiscal Year 2013/14

EXHIBIT #1 Regular Council Meeting of 01-27-2014

CITIZENS COALITION AND TASK FORCE ON RACIAL AND ETHNIC EXHIBIT #2 Regular Council FAIRNESS CONSIDERATIONS SPECIFICALLY REGARDING THE Meeting of DISENFRANCHIZED BLACK AND MINORITY AT RISK 01-27-2014 COMMUNITIES IN PARTICULAR TO THE STATE, COUNTIES, AND CITIES PUBLIC OFFICIAL OBLIGATIONS TO THESE STATED COMMUNITIES IN THE STATE OF DELAWARE BETWEEN 2008 AND 2014 Purpose Scope and Intent PURPOSE. To attack organized institutional racism. By documenting the events noted, and to expose documented examples of fraud and corruption within the State Counties and Cities that are clearly not in the collective public interest as relating to the impact on the at risk minorities. SCOPE. To promote public disclosure from government officials who are public servants. To establish through thorough and complete investigation a valid data base of material facts and noted events and armed there with the ability to expose the perpetrators elected officials to the scrutiny of the citizens who elected them. INTENT. To confront institutional racism as a recognized form of dysfunctional government. To force a public dialogue between the officials and the public designed to promote disclosure of corrupt and racist public official actors at every level of State government. SOLUTION. To force public disclosure of fraud and corruption State wide via analysis of circumstances and events in a objectively reasonable intent to find assure and to know through open public input that all citizens are beneficiaries of equal and fair treatment. To initiate public discussion dialogue and debate which is not only welcome but is encouraged from the public. 7 Key words motivating the PURPOSE SCOPE INTENT and SOLUTION statement above. 1. SOCIAL-impact on society and on the various communities interaction with each other 2. HISTORICAL-impact on current past and future events 3. RELIGIOUS-impact on culture and morality and integrity 4. LEGAL-impact on the application of the law and the laws within the State 5. EMOTIONAL-impact on public identity and social perceptions 6. EDUCATIONAL-impact on the public knowledge and learning of valid information EShed Alston . ~~~ · ~rc,..,=--.-- I swear these facts are true so help me GOD.

EXHIBIT #3 Regular Council Meeting of 01-27-2014 Violation of Dangerous Building Ordinance 27 N New Street Planning & Inspections Department Dover, Delaware EXHIBIT #3 January 27, 2014 Regular Council Meeting of 01-27-2014

27 N New St Case History  18 code enforcement cases since 2004 – Exterior code violations – Interior code violations  The utilities were terminated on December 5, 2013  Condemned by City Staff on November 6, 2013 due to the excessive water damage throughout the home caused from roof leaks and broken water pipes.  Source of neighbor complaints  Outstanding Charges – Unpaid city taxes

Dangerous Building Code – Chapter 22 Article XI, Sec. 22-381 (5) Unfit for habitation. (9) General welfare. (10) Code violations.

Recommended Council Action  Declare this property dangerous.  Order the property repaired or demolished by February 27, 2014 by the owner or equity owner at their own risk.  Order the Building Inspector to cause the repair or demolition of the property if not completed by the owner within 10 days of the date established by City Council.  Order the City Manager with the assistance of the City Solicitor to cause the cost of repairs or demolition to be charged against the land on which the property exists as a municipal lien or cause such cost to be added to the tax duplicate as an assessment, or to be levied as a special tax, or to be recovered in a suit at law against the owner.

EXHIBIT #4 Regular Council Meeting of 01-27-2014

City of Dover FY 20xx Grant In Aid Instructions Prepared by: Finance Department Donna Mitchell, Controller/Treasurer

Application • The application and instructions are available at the following website: http:// • If you need assistance downloading the application from the internet please contact the Finance Department at 302-736- 7018. 2

Grant In Aid Cover Page • Official Name of Organization • Date of Incorporation • 9 Digit Federal Employer ID Number • Contact Representative • Daytime Phone Number • E-mail address • First time applicant? • Did you receive GIA in FY14? • If yes, does this application include a request to fund a new program? • Have you received GIA from other government agencies? 3 • If yes, amount received from other agencies?

Form 1 – Management Organization • Official Name of Organization • Address (where your check will be mailed) and phone number • Physical location of service • Contact representative • Name • Address • Daytime phone number • Agency Name • Names of Officers & Board of Directors and their daytime phone number 4

Form 2 – Agency Background • Agency Mission Statement • Agency Location(s) • Locations where services are actually provided, days and hours of operation for site visits. 5

Form 3 – Revenue • Revenue sources for previous, current, and proposed year • Include revenue from: • Federal Government • State Government • City Government • Other (List sources) • Investments • Sales • Dues • Contributions or Donations • Miscellaneous 6

Form 4 – Disbursements • Expenses • Salaries, employee benefits, payroll taxes, etc. • Non-expense disbursements • This is an expense that is not considered an operational expense. • For example – A principal payment on an asset (equipment, vehicle, mortgage, etc.) 7

Form 5 – Federal & State Grants • If you have received other Federal or State Grants please fill out this page. • Include the Name of Project, Year, and Funding Amount • If you have not received these grants please go to Form 6. 8

Form 6 – Summary • Summary information for previous, current, and proposed years: • Total Revenue (Form 3) • Total Disbursements (Form 4) • Operating Surplus/Deficit (calculated) • Carryover (balance from prior year) • Net Surplus/Deficit (calculated) • Grant In Aid Request • At the bottom of the form name each program within your agency that will receive Grant In Aid Funds and the amount of your request that will go to each program. • Note: Line 6 of the proposed year and Line 7 should be equal. 9

Form 7 – Program Information • Program name and target population • Program description • Similar services provided by other agencies • Describe program objectives and how outcomes are measured • Describe the progress that has been made in the last year to achieve the program’s objectives • Lines 6 – 12 show the number of people served, service measures, amount of service, program revenue, program disbursements, surplus or deficits for the previous, current, and proposed years. • Line 12 is the amount of funding requested for that specific program for FY2015. 10

Form 7 – Program Information (continued) • Important Notes: • Line 12 should equal Lines 6 and 7 on Form 6 • Use a new “Form 7” for each program • If more than one program is being funded through Grant In Aid the total of all Form 7’s should equal Line 6 and 7 on Form 6 11

Form 8 – Positions and Salaries • Positions and Salary information for the prior, current, and proposed year: • Position Title • Number of positions • Salary ranges 12

Form 9 – Signature Page • This form must be signed by the President or Chairman of the Board of Directors and the Executive Director 13

Form 10 – Audit Information • A copy of our most recent audit prepared by an independent certified public accountant or public accountant must accompany your application. • You may use sample forms A, B, or C if an audit is not available. 14

• Applications are due by _____________________ • THERE WILL BE NO EXTENSIONS! • If you have questions contact • Donna Mitchell, Controller/Treasurer • Finance Department • 302-736-7018 or email dmitchell@dover.de.us 15

EXHIBIT #5 Regular Council Meeting of 01-27-2014 CITY OF DOVER ORDINANCE # 2013‐18 2013‐2014 BUDGET ORDINANCES ‐ FIRST AMENDMENT GENERAL FUND REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Forty Million, Five Hundred Forty Three Thousand, Three Hundred dollars ($40,543,300) or so much thereof as may be necessary are hereby appropriated from current revenues and ther funds for the use by several departments of the Municipal Government for the Fiscal Year beginning July 1, 2013 and ending June 30, 2014: ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 3,455,200 $ 4,219,800 REVENUES FINES AND POLICE REVENUE 666,000 666,000 INVESTMENT INCOME 75,000 75,000 LIBRARY REVENUES 66,600 66,600 KENT COUNTY BOOK REIMBURSEMENT 400,000 400,000 BUSINESS LICENSES 1,460,000 1,460,000 PERMITS AND OTHER LICENSES 1,167,500 1,167,500 MISCELLANEOUS CHARGES 63,300 63,300 POLICE EXTRA DUTY 650,000 650,000 PROPERTY TAXES 11,120,000 11,120,000 BID REVENUE 49,500 49,500 RECREATION REVENUE 133,000 133,000 FRANCHISE FEE 606,200 606,200 TRASH FEES 2,676,500 2,676,500 RENT REVENUE ‐ GARRISON FARM 118,500 118,500 COURT OF CHANCERY FEES 863,200 863,200 REVENUES SUBTOTAL 20,115,300 20,115,300 INTERFUND SERVICE RECEIPTS INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 1,134,900 1,134,900 INTRAFUND SERVICE RECEIPTS ELECTRIC 3,319,400 3,319,400 INTERFUND SERVICE RECEIPTS SUBTOTAL 4,454,300 4,454,300 GRANTS POLICE RELATED 110,000 151,800 POLICE PENSION GRANT 500,000 500,000 GREEN ENERGY GRANT 98,500 98,500 MISCELLANEOUS GRANTS 25,000 25,000 GRANTS SUBTOTAL 733,500 775,300 TRANSFERS FROM TRANSFER TAX 1,315,500 1,315,500 MUNICIPAL STREET AID 527,400 531,100 CIVIL TRAFFIC PENALTIES 600,000 600,000 WATER/WASTEWATER 500,000 500,000 ELECTRIC 8,000,000 8,000,000 OTHER RESERVES 32,000 32,000 TRANSFERS FROM SUBTOTAL 10,974,900 10,978,600 TOTAL REVENUES 36,278,000 36,323,500 TOTALS $ 39,733,200 $ 40,543,300 1 of 27

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED GENERAL FUND ‐ EXPENDITURES AND BUDGET BALANCE FOR 2013‐2014 ORIGINAL REVISED 2013/14 2013/14 DEPARTMENT EXPENSES BUDGET BUDGET CITY CLERK $ 334,400 $ 334,400 COUNCIL 107,800 107,800 TAX ASSESSOR 198,300 198,300 FIRE 692,100 692,100 GROUNDS MAINTENANCE 948,500 948,500 LIBRARY 1,330,400 1,330,400 RECREATION 708,200 708,200 LIFE SAFETY 468,200 468,200 CODE INFORCEMENT 377,100 377,100 PLANNING 444,800 444,800 INSPECTIONS 540,300 540,300 ECONOMIC DEVELOPMENT 215,200 215,200 POLICE 13,571,800 13,571,800 POLICE EXTRA DUTY 760,000 801,800 STREETS 603,700 603,700 SANITATION 2,153,800 2,153,800 CITY MANAGER 457,300 457,300 INFORMATION TECHNOLOGY 660,500 660,500 FINANCE 906,500 906,500 PUBLIC SERVICES ‐ ADMINISTRATION 425,800 425,800 FACILITIES MANAGEMENT 632,600 632,600 CENTRAL SERVICES 517,600 517,600 FLEET MAINTENANCE 720,700 720,700 CUSTOMER SERVICES 1,109,400 1,109,400 HUMAN RESOURCES 334,300 334,300 MAYOR 83,300 83,300 DEPARTMENT SUBTOTALS 29,302,600 29,344,400 OTHER EXPENSES DEBT SERVICE 557,300 557,300 CONTRIBUTION TO DDP 162,400 162,400 MISCELLANEOUS GRANT RELATED EXPENSES 25,000 25,000 INSURANCE 658,900 658,900 RETIREES HEALTH CARE 1,636,500 1,636,500 OTHER EMPLOYMENT EXPENSES 400,000 400,000 PENSION UNFUNDED LIABILITY 1,159,100 1,923,700 POLICE PENSION FUND ‐ STATE GRANT 500,000 500,000 POLICE PENSION FUND ‐ UNFUNDED LIABILITY 307,400 307,400 UNCOLLECTIBLES ‐ TRASH AND OTHER 10,000 10,000 STREET LIGHTS 836,000 836,000 OTHER EXPENSE SUBTOTAL 6,252,600 7,017,200 TRANSFERS TRANSFER TO CAPITAL FUND ‐ PROJECTS 1,278,300 1,278,300 TRANSFERS SUBTOTAL 1,278,300 1,278,300 TOTAL EXPENDITURES 36,833,500 37,639,900 CURRENT YEAR BALANCE 2,899,700 2,903,400 TOTALS $ 39,733,200 $ 40,543,300 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 2 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED GENERAL FUND CONTINGENCY CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Seven Hundred Forty Six Thousand, Five Hundred dollars ($746,500) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 732,100 $ 734,000 INTEREST EARNED 12,500 12,500 TOTALS $ 744,600 $ 746,500 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET TRANSFER TO OPERATING ACCOUNT $ 21,000 $ 21,000 CARRY FORWARD TO NEXT YEAR 723,600 725,500 TOTALS $ 744,600 $ 746,500 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 3 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED GOVERNMENTAL CAPITAL PROJECTS FUND REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Five Million, One Hundred Sixty Three Thousand, One Hundred dollars ($5,163,100) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 2,2013 and ending June 30, 2014: REVENUES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 241,200 $ 2,801,800 BEGINNING BALANCE ‐ LIBRARY PROJECT (74,700) 256,500 REVENUES STATE GRANTS ‐ OTHER 15,000 15,000 CONTRACTOR'S CONTRIBUTIONS ‐ 264,800 TRANSFER FROM COMMUNITY TRANSPORTATION 60,500 TRANSFER FROM GENERAL FUND FOR PROJECTS 1,278,300 1,278,300 TRANSFER FROM MUNICIPAL STREET AID ‐ CAPITAL ‐ 251,200 TRANSFER FROM PARKLAND RESERVE 95,000 80,000 SUBTOTAL PROJECT RECEIPTS 1,388,300 1,949,800 STATE GRANTS ‐ LIBRARY ‐ 150,000 LIBRARY CAPITAL PLEDGES ‐ 5,000 SUBTOTAL LIBRARY PROJECT RECEIPTS ‐ 155,000 TOTAL REVENUES 1,388,300 2,104,800 TOTAL BEGINNING BALANCE AND REVENUES $ 1,554,800 $ 5,163,100 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 DEPARTMENT EXPENSES BUDGET BUDGET FIRE $ 238,500 $ 238,500 GROUNDS MAINTENANCE 50,100 50,100 LIBRARY ‐ 411,500 RECREATION 95,000 95,000 CODE ENFORCEMENT 30,000 30,000 POLICE 257,300 363,300 STREETS 251,500 1,459,600 STREETS ‐ GARRISON FARM INFRASTRUCTURE ‐ 1,936,100 SANITATION 402,100 402,100 INFORMATION TECHNOLOGY 7,000 7,000 FACILITIES MANAGEMENT 17,800 17,800 PROCUREMENT & INVENTORY 55,000 55,000 DEPARTMENT SUBTOTAL 1,404,300 5,066,000 CURRENT YEAR BALANCE 150,500 97,100 TOTALS $ 1,554,800 $ 5,163,100 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 4 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED GENERAL CAPITAL ASSET RESERVE CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Five Hundred Fifteen Thousand, Threes Hundred dollars ($515,300) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS REVISED REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 504,000 $ 507,300 RECEIPTS INTEREST EARNINGS 8,000 8,000 TOTAL RECEIPTS 8,000 8,000 TOTALS $ 512,000 $ 515,300 EXPENSE SUMMARY REVISED REVISED 2013/14 2013/14 BUDGET BUDGET CARRY FORWARD TO NEXT YEAR $ 512,000 $ 515,300 TOTALS $ 512,000 $ 515,300 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 5 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED PARKLAND/RECREATION RESERVE CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Two Hundred Five Thousand, Four Hundred dollars ($205,400) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PRIOR YEAR BALANCE $ 202,500 $ 202,900 INTEREST INCOME 2,500 2,500 TOTALS $ 205,000 $ 205,400 OPERATING EXPENSES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET TRANSFER TO CAPITAL PROJECTS FUND $ 95,000 $ 80,000 CURRENT YEAR BALANCE 110,000 125,400 TOTALS $ 205,000 $ 205,400 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 6 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED WATER/WASTEWATER FUND REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Fourteen Million,Nine Hundred Fifty Four Thousand, dollars ($14,954,000) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE ‐ WATER $ 770,800 $ 732,700 BEGINNING BALANCE ‐ WASTEWATER 412,600 441,400 BEGINNING BALANCE ‐ KCSA 141,600 (17,300) TOTAL BEGINNING BALANCES 1,325,000 1,156,800 BASE REVENUE WATER FEES 4,730,700 4,730,700 WASTEWATER FEES 3,642,700 3,642,700 WASTEWATER ADJUSTMENT FEES 2,980,300 2,980,300 GROUNDWATER INFLOW ADJUSTMENT 1,324,600 1,324,600 WATER TANK SPACE LEASING 333,800 333,800 SEWER IMPACT FEES 323,000 323,000 WATER IMPACT FEES 357,000 357,000 INTEREST ‐ WATER 9,100 9,100 INTEREST ‐ WASTEWATER 14,000 14,000 MISCELLANEOUS SERVICE FEE 82,000 82,000 TOTAL REVENUES 13,797,200 13,797,200 TOTAL BEGINNING BALANCES AND REVENUES $ 15,122,200 $ 14,954,000 7 of 27

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED WATER/WASTEWATER FUND ‐ EXPENDITURES AND BUDGET BALANCE FOR 2013‐2014 ORIGINAL REVISED 2013/14 2013/14 DIRECT EXPENSES BUDGET BUDGET ENGINEERING & INSPECTION $ 664,400 $ 631,200 WATER CONSTRUCTION 351,400 351,400 WATER DEPARTMENT 433,900 433,900 WATER TREATMENT PLANT 1,501,800 1,501,800 WASTEWATER DEPARTMENT 945,100 945,100 DIRECT EXPENDITURE SUBTOTAL 3,896,600 3,863,400 OTHER EXPENSES DEBT SERVICE ‐ WATER 403,800 403,800 DEBT SERVICE ‐ WASTEWATER 615,700 615,700 RETIREES HEALTH CARE 200,000 200,000 OTHER EMPLOYMENT EXPENSES 25,000 25,000 PENSION UNFUNDED LIABILITY 339,400 339,400 KENT COUNTY TREATMENT CHARGE 3,524,800 3,524,800 INTRAFUND SERVICE FEES 1,233,400 1,233,400 OTHER EXPENSES SUBTOTAL 6,342,100 6,342,100 TRANSFER TO GENERAL FUND FROM WATER 250,000 250,000 GENERAL FUND FROM WASTEWATER 250,000 250,000 WATER IMP AND EXT 1,200,000 1,233,200 WASTEWATER IMP AND EXT 1,330,000 1,330,000 TRANSFER TO SUBTOTAL 3,030,000 3,063,200 TOTAL EXPENSES 13,268,700 13,268,700 CURRENT YEAR BALANCES CURRENT YEAR BALANCE WATER 1,056,400 1,018,300 CURRENT YEAR BALANCE WASTEWATER 797,100 825,900 CURRENT YEAR BALANCE KCSA ‐ (158,900) CURRENT YEAR BALANCE SUBTOTALS 1,853,500 1,685,300 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 15,122,200 $ 14,954,000 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 8 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED WATER/WASTEWATER CONTINGENCY RESERVE CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Two Hundred Ninety Seven Thousand, Four Hundred dollars ($297,400) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE ‐ WATER $ 103,800 $ 104,100 BEGINNING BALANCE ‐ WASTEWATER 188,300 188,300 TOTAL BEGINNING BALANCES 292,100 292,400 RECEIPTS INTEREST EARNINGS 5,000 5,000 TOTAL RECEIPTS 5,000 5,000 TOTALS $ 297,100 $ 297,400 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET CURRENT YEAR BALANCE ‐ WATER $ 105,600 $ 106,600 CURRENT YEAR BALANCE ‐ WASTEWATER 191,500 190,800 CURRENT YEAR BALANCE SUBTOTALS 297,100 297,400 TOTAL EXPENSES AND CURRENT YEAR BALANCES $ 297,100 $ 297,400 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 9 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Fifteen Million, Four Hundred Fifty Four Thousand, Nine Hundred dollars ($15,454,900) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PRIOR YEAR BALANCE ‐ WATER $ 1,620,000 $ 4,473,800 PRIOR YEAR BALANCE ‐ WASTEWATER 660,900 2,807,000 TOTAL BEGINNING BALANCES 2,280,900 7,280,800 RECEIPTS BOND PROCEEDS ‐ WATER ‐ 2013 ISSUE ‐ 3,000,000 BOND PROCEEDS ‐ WASTEWATER ‐ 2013 ISSUE ‐ 1,067,900 BOND PROCEEDS ‐ WASTEWATER ‐ 2011 ISSUE (DRLP) 62,000 ARBITRAGE REBATE ‐ IRS REFUND ‐ 66,000 TRANS FROM OPERATING FUND FOR WATER 1,200,000 1,233,200 TRANS FROM OPERATING FUND FOR WASTEWATER 1,330,000 1,330,000 TRANSFER FROM WATER IMPACT FEE RESERVE 390,000 390,000 TRANSFER FROM WASTEWATER IMPACT FEE RESERVE ‐ 1,000,000 INTEREST INCOME 25,000 25,000 TOTAL RECEIPTS 2,945,000 8,174,100 TOTALS $ 5,225,900 $ 15,454,900 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 EXPENSES BUDGET BUDGET WATER $ 1,476,800 $ 7,499,700 WASTEWATER 1,251,000 5,252,400 WATER CONSTRUCTION 90,000 90,000 TOTAL EXPENSES 2,817,800 12,842,100 CURRENT YEAR BALANCE ‐ WATER 1,655,700 1,552,800 CURRENT YEAR BALANCE ‐ WASTEWATER 752,400 1,060,000 CURRENT YEAR BALANCE SUBTOTALS 2,408,100 2,612,800 TOTALS $ 5,225,900 $ 15,454,900 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 10 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED WATER/WASTEWATER CAPITAL ASSET RESERVE CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating One Million, Twenty Six Thousand, Nine Hundred dollars ($1,026,900) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE ‐ WATER $ 504,400 $ 505,400 BEGINNING BALANCE ‐ WASTEWATER 503,700 504,300 TOTAL BEGINNING BALANCES 1,008,100 1,009,700 RECEIPTS INTEREST EARNINGS ‐ WATER 8,600 8,600 INTEREST EARNINGS ‐ WASTEWATER 8,600 8,600 TOTAL RECEIPTS 17,200 17,200 TOTALS $ 1,025,300 $ 1,026,900 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET CURRENT YEAR BALANCE ‐ WATER $ 513,000 $ 514,000 CURRENT YEAR BALANCE ‐ WASTEWATER 512,300 512,900 CURRENT YEAR BALANCE SUBTOTALS 1,025,300 1,026,900 TOTALS $ 1,025,300 $ 1,026,900 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 11 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED ELECTRIC REVENUE FUND REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Eighty Nine Million, Six Hundred Six Thousand, Five Hundred dollars ($89,606,500) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 7,152,400 $ 6,620,900 BASE REVENUE DIRECT SALES TO CUSTOMER 76,286,700 76,286,700 UTILITY TAX 1,492,200 1,492,200 MISCELLANEOUS REVENUE 602,000 602,000 RENT REVENUE 251,000 251,000 GREEN ENERGY 135,800 135,800 INTEREST EARNINGS 119,400 119,400 TRANSFER FROM RATE STABILIZATION 4,000,000 4,000,000 INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 98,500 98,500 TOTAL REVENUES 82,985,600 82,985,600 TOTALS $ 90,138,000 $ 89,606,500 12 of 27

2013‐2014 BUDGET ORDINANCES ‐ CONTINUED ELECTRIC REVENUE FUND ‐ EXPENDITURES & BUDGET BALANCE FOR 2013‐2014 ORIGINAL REVISED 2013/14 2013/14 EXPENSES BUDGET BUDGET POWER SUPPLY $ 23,832,000 $ 23,832,000 SOLAR ENERGY 1,565,800 1,565,800 SOLAR RENEWAL ENERGY CREDITS 300,000 300,000 POWER SUPPLY MANAGEMENT 996,000 996,000 PJM CHARGES ‐ ENERGY 12,812,900 12,812,900 PJM CHARGES ‐ TRANSMISSION & FEES 4,740,000 4,740,000 CAPACITY CHARGES 15,787,200 15,787,200 SUB‐TOTAL POWER SUPPLY 60,033,900 60,033,900 PLANT OPERATIONS 6,015,800 6,015,800 PJM SPOT MARKET ENERGY (230,500) (230,500) PJM CREDITS (397,000) (397,000) CAPACITY CREDITS (15,079,800) (15,079,800) GENERATION SUBTOTAL (9,691,500) (9,691,500) POWER SUPPLY & GENERATION SUBTOTAL 50,342,400 50,342,400 DIRECT EXPENDITURES TRANSMISSION/DISTRIBUTION 3,302,500 3,302,500 ELECTRICAL ENGINEERING 1,192,200 1,192,200 ADMINISTRATION 597,000 597,000 METER READING 220,300 220,300 SYSTEMS OPERATIONS 543,600 543,600 DIRECT EXPENDITURE SUBTOTALS 5,855,600 5,855,600 OTHER EXPENSES: UTILITY TAX 1,492,200 1,492,200 ALLOW FOR UNCOLLECTIBLES 200,000 200,000 CONTRACTUAL SERVICES ‐ RFP'S 100,000 100,000 RETIREES HEALTH CARE 513,300 513,300 OTHER EMPLOYMENT EXPENSES 150,000 150,000 TRANSFER TO PENSION UNFUNDED LIABILITY 1,314,200 1,314,200 OPEB UNFUNDED LIABILITY 975,700 975,700 GREEN ENERGY PAYMENT TO DEMEC 135,800 135,800 INTRAFUND SERVICE FEES 3,319,400 3,319,400 INTEREST ON DEPOSITS 27,000 27,000 DEBT SERVICE 3,301,900 3,301,900 OTHER EXPENSES SUBTOTAL 11,529,500 11,529,500 TRANSFER TO IMPROVEMENT & EXTENSION 5,448,600 4,918,600 GENERAL FUND 8,000,000 8,000,000 TRANSFER TO SUBTOTAL 13,448,600 12,918,600 TOTAL EXPENSES 81,176,100 80,646,100 CURRENT YEAR BALANCE 8,961,900 8,960,400 TOTALS $ 90,138,000 $ 89,606,500 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 13 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED ELECTRIC UTILITY CONTINGENCY RESERVE CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Eight Hundred Twenty Six Thousand, Four Hundred dollars ($826,400) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 814,300 $ 814,200 RECEIPTS INTEREST EARNINGS 12,200 12,200 TOTAL RECEIPTS 12,200 12,200 TOTALS $ 826,500 $ 826,400 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET CURRENT YEAR BALANCE $ 826,500 $ 826,400 TOTALS $ 826,500 $ 826,400 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 14 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED ELECTRIC UTILITY INSURANCE STABLIZATION RESERVE SOURCES AND USE OF FUNDS FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Seven Hundred Forty Three Thousand, Nine Hundred dollars ($743,900) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 728,000 $ 733,000 INTEREST EARNINGS 11,000 10,900 TOTALS $ 739,000 $ 743,900 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET CURRENT YEAR BALANCE $ 739,000 $ 743,900 TOTALS $ 739,000 $ 743,900 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 15 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED ELECTRIC UTILITY RATE STABLIZATION RESERVE SOURCES AND USE OF FUNDS FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Seventeen Million, Six Hundred Forty Two Thousand, Five Hundred dollars ($17,642,500) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 17,383,600 $ 17,382,100 INTEREST EARNINGS 260,400 260,400 TOTALS $ 17,644,000 $ 17,642,500 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET TRANSFER TO ELECTRIC FUND $ 4,000,000 $ 4,000,000 CURRENT YEAR BALANCE 13,644,000 13,642,500 TOTALS $ 17,644,000 $ 17,642,500 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 16 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED ELECTRIC UTILITY IMPROVEMENT AND EXTENSION FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Nine Million, Three Hundred Sixty Four Thousand dollars ($9,364,000) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 3,091,000 $ 3,980,200 RECEIPTS TRANSFER FROM ELECTRIC 5,448,600 4,918,600 GENERAL SERVICE BILLING 440,000 440,000 INTEREST EARNINGS 25,200 25,200 TOTAL RECEIPTS 5,913,800 5,383,800 TOTALS $ 9,004,800 $ 9,364,000 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 EXPENSES BUDGET BUDGET ELECTRIC GENERATION $ 2,117,800 $ 2,130,000 TRANSMISSION AND DISTRIBUTION 1,100,000 1,144,600 ELECTRICAL ENGINEERING 2,405,800 2,627,500 TOTAL EXPENSES 5,623,600 5,902,100 CURRENT YEAR BALANCE 3,381,200 3,461,900 TOTALS $ 9,004,800 $ 9,364,000 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 17 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED ELECTRIC UTILITY DEPRECIATION RESERVE SOURCES AND USE OF FUNDS FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Ten Million, Three Thousand, One Hundred dollars ($10,003,100) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 9,829,700 $ 9,855,700 INTEREST EARNINGS 147,400 147,400 TOTALS $ 9,977,100 $ 10,003,100 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET CURRENT YEAR BALANCE 9,977,100 10,003,100 TOTALS $ 9,977,100 $ 10,003,100 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 18 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED ELECTRIC UTILITY FUTURE CAPACITY RESERVE SOURCES AND USE OF FUNDS FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Ten Million, One Hundred Forty Five Thousand, Eight Hundred dollars ($10,145,800) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 9,989,800 $ 10,004,200 INTEREST EARNINGS 141,600 141,600 TOTALS $ 10,131,400 $ 10,145,800 EXPENSE SUMMARY ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET CURRENT YEAR BALANCE $ 10,131,400 $ 10,145,800 TOTALS $ 10,131,400 $ 10,145,800 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 19 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED MUNICIPAL STREET AID FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Seven Hundred Eighty Two Thousand, Four Hundred dollars ($782,400) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: CASH RECEIPTS ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 100 $ 251,500 STATE GRANT ‐ OPERATIONS 527,400 530,900 TOTALS $ 527,500 $ 782,400 BUDGET SUMMARY ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET TRANSFER TO GENERAL FUND ‐ OPERATIONS $ 527,400 $ 531,100 TRANSFER TO GENERAL FUND ‐ CAPITAL ‐ 251,200 CURRENT YEAR BALANCE 100 100 TOTALS $ 527,500 $ 782,400 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 20 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED COMMUNITY TRANSPORTATION IMPROVEMENT FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating One Million, Five Hundred Nintey Seven Thousand, Three Hundred dollars ($1,597,300) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PRIOR YEAR BALANCE $ ‐ $ 209,200 GRANTS REVENUE ‐ DELDOT 500,000 1,387,600 INTEREST INCOME 500 500 TOTAL REVENUES 500,500 1,388,100 TOTALS $ 500,500 $ 1,597,300 OPERATING EXPENSES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PROGRAM EXPENSES ‐ DELDOT $ 500,000 $ 1,457,900 TRANSFER TO GENERAL CAPITAL PROJECT FUND ‐ 60,500 TOTAL EXPENDITURES 500,000 1,518,400 CURRENT YEAR BALANCE 500 78,900 TOTALS $ 500,500 $ 1,597,300 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 21 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED WORKERS COMPENSATION FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating One Million, Seven Hundred Sixty Nine Thousand, One Hundred dollars ($1,769,100) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 2, 2013 and ending June 30, 2014: OPERATING REVENUES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PRIOR YEAR BALANCE $ 1,200,600 $ 1,267,800 INTEREST INCOME 10,600 10,600 PREMIUM FROM CITY 490,700 490,700 TOTALS $ 1,701,900 $ 1,769,100 OPERATING EXPENSES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PROGRAM EXPENSES/SUPPLIES ‐ CLAIMS $ 450,000 $ 450,000 INSURANCE 76,500 76,500 BANK FEES 600 600 STATE OF DEL ‐ SELF INSURANCE TAX 37,000 37,000 CONTRACTUAL SERVICES 57,000 57,000 TOTAL EXPENSES 621,100 621,100 CURRENT YEAR BALANCE 1,080,800 1,148,000 TOTALS $ 1,701,900 $ 1,769,100 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 22 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED LIBRARY GRANT FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Three Hundred Four Thousand, Four Hundred dollars ($304,400) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ ‐ $ 27,800 STATE GRANT 270,100 274,100 FEDERAL GRANT 2,500 TOTALS $ 270,100 $ 304,400 OPERATING EXPENSES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PROGRAM EXPENSES/SUPPLIES $ 28,000 $ 28,000 OFFICE SUPPLIES 24,000 24,000 PRINTING/DUPLICATING 8,900 8,900 POSTAGE 100 100 BOOKS 124,900 124,900 FURNITURE 2,000 2,000 AUDIO VISUAL SUPPLIES 74,000 74,000 TRAINING/CONF/FOOD/TRAV 3,500 3,500 OFFICE EQUIPMENT/REPAIRS & MAINT 2,000 2,000 COMPUTER HARDWARE 2,700 2,700 SUBTOTAL EXPENSES 270,100 270,100 CURRENT YEAR BALANCE ‐ 34,300 TOTALS $ 270,100 $ 304,400 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 23 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED POLICE GRANT FUNDS CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Five Hundred Sixty Five Thousand, Seven Hundred dollars ($565,700) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE $ 100 $ 175,200 GRANTS RECEIVED 413,000 390,500 TOTALS $ 413,100 $ 565,700 OPERATING EXPENSES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PROGRAM EXPENSES/SUPPLIES $ 191,000 $ 224,700 COMPUTER HARDWARE 60,000 60,000 TELEPHONE/FAX 15,000 15,000 TRAINING/CONF/FOOD/TRAV 36,000 36,000 CONSULTING/AUDIT FEES 1,000 1,000 TRANSFER TO GENERAL FUND 110,000 151,800 SUBTOTAL EXPENSES 413,000 488,500 CURRENT YEAR BALANCE 100 77,200 TOTALS $ 413,100 $ 565,700 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 24 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED CDBG FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Two Hundred Forty Nine Thousand, Six Hundred dollars ($249,600) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET BEGINNING BALANCE ‐ CDBG $ ‐ $ 2,000 BEGINNING BALANCE ‐ NSP ‐ 2,800 GRANTS RECEIVED 223,600 244,800 TOTALS $ 223,600 $ 249,600 OPERATING EXPENSES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET CURRENT YEAR CLOSING COST/DOWNPAYMENT PROG $ 40,000 $ 40,000 CURRENT YEAR DOVER INTERFAITH MINISTRY 27,500 27,500 CURRENT YEAR MHDC EMERGENCY HOME REPAIR 40,000 40,000 CURRENT YEAR ELIZABETH W MURPHEY SCHOOL 32,700 39,700 CURRENT YEAR NCALL RESEARCH INC 6,000 8,900 CURRENT YEAR MILFORD HOUSING H/O REHAB 32,700 39,700 CURRENT YEAR SALARIES 44,700 49,000 SUBTOTAL EXPENSES 223,600 244,800 CURRENT YEAR BALANCE ‐ 4,800 TOTALS $ 223,600 $ 249,600 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 25 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED AFTER SCHOOL PROGRAM CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating One Hundred Ten Thousand Nine Hundred dollars ($110,900) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PRIOR YEAR BALANCE $ ‐ $ 41,000 GRANTS RECEIVED ‐ 36,900 RECREATION REVENUE ‐ 33,000 TOTALS $ ‐ $ 110,900 OPERATING EXPENSES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PROGRAM EXPENSES $ ‐ $ 36,900 TEMPORARY EMPLOYEES/BENEFITS ‐ 54,000 TOTAL EXPENSES ‐ 90,900 CURRENT YEAR BALANCE ‐ 20,000 TOTALS $ ‐ $ 110,900 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 26 of 27

2013‐2014 BUDGET ORDINANCE‐FIRST AMENDMENT ‐ CONTINUED CJC GRANTS CASH RECEIPTS/REVENUES AND BUDGET FOR 2013‐2014 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amount hereinafter named aggregating Thirty Four Thousand dollars ($34,000) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2013 and ending June 30, 2014: OPERATING REVENUES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PRIOR YEAR BALANCE $ ‐ $ ‐ GRANTS RECEIVED ‐ 34,000 TOTALS $ ‐ $ 34,000 OPERATING EXPENSES ORIGINAL REVISED 2013/14 2013/14 BUDGET BUDGET PROGRAM EXPENSES $ ‐ $ 34,000 TOTAL EXPENSES ‐ 34,000 CURRENT YEAR BALANCE ‐ ‐ TOTALS $ ‐ $ 34,000 The City Manager is hereby authorized, without further approval of the City Council, to make interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any department with the exception of any transfers prohibited by City Procedure #F306. ADOPTED: January 27, 2014 27 of 27

City of Dover MAYOR AND COUNCIL 1 DRAFT PROPOSED COUNCIL RESOLUTION NO. 2014-02 2 A RESOLUTION VACATING AND ABANDONING A CERTAIN IMPROVED STREET 3 SITUATED IN THE CITY OF DOVER. 4 BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 5 MET: 6 Section 1. The Council of the City of Dover hereby vacates and abandons Budd Street, as specified below: 7 Adjacent to 5 East Reed Street (ED-05-077.05-04-35.00) 8 Being a portion of that certain piece or parcel of land situated in the City of Dover, Kent County, State of 9 Delaware, being an improved public street running in a west to east direction, located to the north of East 10 Reed Street, said portion of street beginning at a point identified as the northwest corner of Parcel 11 No. ED-05-077.05-04-35.00; thence running with Parcel No. ED-05-077.05-04-35.00 North 86 degrees 12 32 minutes East 282.39 feet along the southerly line of the 10’ wide street to the northeast corner of Parcel 13 No. ED-05-077.05-04-35.00; thence running North 7 degrees 5 minutes West 5 feet crossing into said 10’ 14 wide street to a point in the center of the street, opposite the northeast corner of Parcel No. ED-05-077.05- 15 04-35.00; thence running South 86 degrees 32 minutes West 282.39 feet parallel to the southerly line of the 16 10’ wide street to a point; thence running South 7 degrees 5 minutes East 5 feet to the southerly side of the 17 10’ wide street, being the point and place of beginning and containing 0.0324 acres (1,411.95 square feet) 18 of land be the same more or less. The above described parcel of land shall be considered a public utility 19 easement, reserving the rights of the City of Dover, their agents or assigns to free access for ingress and 20 egress to these premises and every part thereof at all times for purpose of installing, maintaining and 21 operating its existing public utilities. 22 Adjacent to 45 South State Street (ED-05-077.05-04-33.00) 23 Being a portion of that certain piece or parcel of land situated in the City of Dover, Kent County, State of 24 Delaware, being an improved public street running in a west to east direction, located to the east of South 25 State Street, said portion of street beginning at a point identified as the southwest corner of Parcel No. ED- 26 05-077.05-04-33.00; thence running with Parcel No. ED-05-077.05-04-33.00 North 86 degrees 32 minutes 27 East 173.5 feet along the northerly line of the 10’ wide street to the southeast corner of Parcel No. 05- 28 077.05-04-33.00; thence running South 7 degrees 5 minutes East 5 feet crossing into said 10’ wide street 29 to a point in the center of the street, opposite the southeast corner of Parcel No. 05-077.05-04-33.00; thence 30 running South 86 degrees 32 minutes West 173.5 feet parallel to the northerly line of the 10’ wide street to 31 a point; thence running North 7 degrees 5 minutes West 5 feet, being the point and place of beginning and 32 containing 0.0199 acres (867.5 square feet) of land be the same more or less. The above described parcel 33 of land shall be considered a public utility easement, reserving the rights of the City of Dover, their agents 34 or assigns to free access for ingress and egress to these premises and every part thereof at all times for 35 purpose of installing, maintaining and operating its existing public utilities. P.O. Box 475 ˜ Dover, Delaware ˜19903 Community Excellence Through Quality Service

DRAFT PROPOSED COUNCIL RESOLUTION NO. 2014-02 PAGE 2 36 Adjacent to ED-05-077.05-04-36.00 37 Being a portion of that certain piece or parcel of land situated in the City of Dover, Kent County, State of 38 Delaware, being an improved public street running in a west to east direction, located to the west of South 39 American Avenue, said portion of street beginning at a point identified as the southwest corner of Parcel No. 40 ED-05-077.05-04-36.00; thence running with Parcel No. ED-05-077.05-04-36.00 North 86 degrees 32 41 minutes East 108.89 feet along the northerly line of the 10’ wide street to the southeast corner of Parcel No. 42 05-077.05-04-36.00; thence running South 7 degrees 5 minutes East 5 feet crossing into said 10’ wide street 43 to a point in the center of the street, opposite the southeast corner of Parcel No. ED-05-077.05-04-36.00; 44 thence running South 86 degrees 32 minutes West 108.89 feet parallel to the northerly line of the 10’ wide 45 street to a point; thence running North 7 degrees 5 minutes West 5 feet, being the point and place of 46 beginning and containing 0.0125 acres (544.45 square feet) of land be the same more or less. The above 47 described parcel of land shall be considered a public utility easement, reserving the rights of the City of 48 Dover, their agents or assigns to free access for ingress and egress to these premises and every part thereof 49 at all times for purpose of installing, maintaining and operating its existing public utilities. 50 Section 2. Since no person has been deprived of property by the vacating and abandoning of the aforesaid 51 street, no compensation is awarded. 52 Section 3. All costs of conveyance shall be borne by the property owner. 53 Section 4. This resolution shall be effective upon the filing of a revised plot plan of the aforesaid street. 54 ADOPTED: * 55 S:\RESOLUTIONS-PROCLAMATIONS-TRIBUTES\2014\Draft\Resolution No. 2014-02 - Abandonment - Budd Street.wpd 56 57 CARLETON E. CAREY, SR. DAVID L. BONAR 58 MAYOR COUNCIL PRESIDENT 59 Actions History: 60 February 10, 2014 - Introduced at City Council 61

UTILITY COMMITTEE The Utility Committee Meeting was held on January 27, 2014 at 5:31 p.m. with Chairwoman Williams presiding. Members present were Mr. Perza (arrived at 5:33 p.m.; departed at 5:36 p.m.; returned at 5:39 p.m.), Mr. Slavin, Mr. Blakeman, and Mr. Snaman. Members of Council present were Mr. Dixon (arrived at 5:40 p.m.) and Mr. Hutchison. Mayor Carey was also present. AGENDA ADDITIONS/DELETIONS Mr. Blakeman moved for approval of the agenda as presented, seconded by Mr. Snaman and unanimously carried. Explanation of PJM (Pennsylvania, Jersey, Maryland Power Pool) Reactive Service Charges - Robert Trinnear, The Energy Authority Mr. Robert Trinnear, The Energy Authority, reviewed a Presentation - Reactive Service Charges Update, January 2013. In recent months, the TEA/NAES Reports provided to members have reflected actual charges for reactive services that were much higher than budgeted. Mr. Trinnear stated that reactive services are used to provide voltage control on the power grid, basically allowing power to get where it needs to go. Reactive service charges are billed to generators and load-serving entities, such as the City of Dover. Mr. Trinnear stated that the allocation change in the market tariff went into effect December 1, 2012. PJM (Pennsylvania, Jersey, Maryland Power Pool) projected that the impact of this rule change would be small and the change was not modeled. He explained that reactive service charges were previously allocated across the whole PJM region but are now allocated directly to the Delmarva Power and Light (DPL) zone, which is the Delmarva Peninsula and includes the City of Dover. Mr. Trinnear indicated that the more targeted allocation has had a very large monetary impact on the City of Dover and entities like Dover. Referring to the Reactive Services Invoice Amount on Page 4 of the presentation, Mr. Trinnear stated that the chart illustrates the significance of the tariff change and its impact on the City. The average monthly reactive services charge in 2012 was $45,000; however, monthly charges were as high as $370,000 in 2013. In December 2013, the charge was approximately $204,000. Mr. Trinnear stated that many entities affected by the new tariff allocation, like the City of Dover, have been very vocal in asking for a change in the tariff due to its massive impact on cities and utilities. Mr. Trinnear advised members that, in addition to the tariff change, during the previous week PJM had provided a presentation outlining a $25M to $30M error in the calculation of reactive service charges, equating to an approximate 12% error. Between August 2013 and December 2013 there was an error in the PJM allocation method for reactive service charges, which resulted in PJM paying generators who should not have been receiving money. As a result, load-serving entities like the City of Dover will receive an estimated 12% credit. He indicated that the City of Dover should anticipate the entire 12% credit on the January invoice; however, it is possible that the amount for August through October may be credited in January, and the amount for November and December may be credited in February. Since PJM has corrected the procedural error, the City of Dover should notice a reduction in reactive service charges in the future.

UTILITY COMMITTEE MEETING JANUARY 27, 2014 PAGE 2 Mr. Trinnear informed members that there will also be transmission upgrades in the DPL zone in late spring 2014 which should help mitigate many of the reactive service charges. In addition, he noted that PJM was trying to ensure that more of these charges are allocated to a pricing mechanism so that entities are able to hedge this risk and these charges, rather than receiving a bill they cannot do anything about. Responding to Mrs. Williams, Mr. Trinnear explained that PJM has a stakeholder process in which rules are considered by committees consisting of generators and load-serving entities. The tariff change was approved through the stakeholder process in an effort to create fairness across the whole PJM region. In response to Mrs. Williams regarding the impact when the City sells electricity from its own generators to PJM during August and January for peaking power, Mr. Trinnear stated that the City does not receive a great deal of reactive service charges for these generators. He explained that the City of Dover was not the source of the problem; however, there are transmission and voltage issues within the DPL zone south of Dover that affect the City since it is part of the DPL zone. He indicated that the City’s generators would not be able to greatly reduce these charges. Mr. Trinnear advised members that PJM was well aware of the high reactive service charges in the DPL zone and was investigating possibilities for mitigating this. Responding to Mrs. Williams regarding future decisions pertaining to the reactive service charges, Mr. Trinnear stated his opinion that any solution would likely improve things on behalf of entities like the City of Dover, as these entities had been extremely vocal about this issue and were trying to effect change. Mrs. Williams questioned whether the impact of the tariff change was known when the decision was made to implement it. Mr. Trinnear indicated that when he asked PJM this directly, they responded that it was not known; however, PJM could not simply repeal the measure when the impact was realized because all decisions are subject to the stakeholder process. He informed members that this matter was currently being considered again through the committee process. In response to Mr. Slavin, Mr. Trinnear indicated that he did not know whether there was any opposition at the time the rule was made or if there was a minority position counter to what was passed. He expressed his opinion that, in hindsight, if this type of impact had been projected, the rules would not have gone into effect. He stated that this was not considered a major issue, so it was not modeled and the impact was not foreseen. Not much attention was paid to the change until its impact was felt. Responding to Mr. Slavin, Mr. Trinnear stated that The Energy Authority (TEA) was working with PJM directly to voice the City of Dover’s position that additional changes must be made to the allocation of the reactive service charges. He stated that, as the stakeholder process progresses, he would inform the City if he felt a resolution from City Council would be effective.

UTILITY COMMITTEE MEETING JANUARY 27, 2014 PAGE 3 In response to Mrs. Williams, Mr. Trinnear indicated that a tariff revision was expected by mid-year. Responding to Mrs. Williams, Mr. Scott Koenig, City Manager, stated that, with all of the heightened expenditures for the reactive service charges, the City had spent approximately $500,000 more than anticipated through the end of December. He felt that the overage should not reach $1M for the year, since there had been an adjustment. In response to Mr. Blakeman, Mr. Trinnear stated that he was unsure what kind of improvements Delmarva Power & Light would be making; however, it was anticipated that the improvements would be complete by late spring and should mitigate reactive service charges quite substantially. Responding to Mr. Blakeman, Mr. Trinnear concurred that putting Unit 3 on spinning reserve for reactive control would have little to no impact on the reactive service charges, since the problem does not lie with the City of Dover. In response to Mr. Snaman, Mr. Trinnear reiterated that reactive service charges are allocated by zone and, although the City of Dover does not contribute to the problem, the City is part of the DPL zone and there are voltage issues within the zone. He expressed his opinion that it would be too complicated to allocate the charges by individual node or city, but he was unsure of the exact methodology. Responding to Mr. Perza, Mr. Trinnear clarified that the credit would only cover the 12% error that occurred between August and December 2013, not the entire $500,000 since some of that overage amount was the result of the charges being higher than the previous year due to the allocation change. In response to Mrs. Williams, Mr. Trinnear stated that, based on what the City paid from August to December 2013, he estimated that the 12% credit would equate to approximately $120,000; although it could be higher because the DPL zone had one of the highest rates for reactive service charges. Permanent Easement and Temporary Workspace Agreements - Eastern Shore Natural Gas Mr. Scott Koenig, City Manager, reviewed staff’s request for the City to execute a permanent easement and temporary workspace agreements with Eastern Shore Natural Gas (ESNG), to allow ESNG to construct a 16" natural gas pipeline to service the Garrison Energy Center (GEC). He stated that this project was necessary to provide high pressure gas to the Calpine facility and the Garrison Tract. Staff had been working with ESNG and their engineers to identify the easement areas and complete the necessary documentation to allow ESNG to begin construction immediately. Staff recommended authorizing the City Manager or his designated staff to execute the easement agreement and other necessary agreements with Eastern Shore Natural Gas (ESNG) to facilitate the construction of the proposed 16" natural gas pipeline across lands owned by the City of Dover, as depicted in the referenced agreements. Financial consideration for the easements shall be delegated to the City Manager and the City Manager will notify City Council of the results.

UTILITY COMMITTEE MEETING JANUARY 27, 2014 PAGE 4 Mr. Koenig noted that the staff was still working on the financial consideration for the easements but estimated an approximate cost of $700 per acre. In response to Mrs. Williams, Mr. Koenig stated that one (1) of the easements was approximately three-quarters of an acre and there was not a large amount of land in total. Responding to Mr. Slavin, Mr. Koenig explained that this item would be considered by Council at the meeting being held later in the evening in order to allow ESNG to begin construction immediately. ESNG had originally anticipated starting construction in Cheswold and working south to the GEC; however, due to the scheduled Firefly Music Festival and NASCAR race at Dover Downs, ESNG decided to invert the construction time line to begin at the GEC. In response to Mr. Perza, Mr. Koenig stated his opinion that it was not necessary for the Committee to specifically allocate an amount for the easement. The standard used for other easements at the GEC was $700. Mr. Blakeman moved to recommend approval of staff’s recommendation to authorize the City Manager or his designated staff to execute the easement agreement and other necessary agreements with Eastern Shore Natural Gas (ESNG) to facilitate the construction of the proposed 16" natural gas pipeline across lands owned by the City of Dover, as depicted in the referenced agreements, and to delegate financial consideration for the easements to the City Manager, with the City Manager to notify City Council of the results, seconded by Mr. Snaman. Responding to Mayor Carey, Mr. Koenig stated that pictures were taken of the area to ensure restoration; however, video was not use. He assured members that the area would be documented prior to construction. On a call for the question, the motion to recommend approval of staff’s recommendation to authorize the City Manager or his designated staff to execute the easement agreement and other necessary agreements with Eastern Shore Natural Gas (ESNG) to facilitate the construction of the proposed 16" natural gas pipeline across lands owned by the City of Dover, as depicted in the referenced agreements, and to delegate financial consideration for the easements to the City Manager, with the City Manager to notify City Council of the results was unanimously carried with Mr. Slavin abstaining. (City Clerk’s Office Note: Due to time constraints, this item was placed on the Council agenda for the meeting being held later in the evening.) Easements and Rights-of-Way between City of Dover and Delmarva Power & Light Company Mr. Scott Koenig, City Manager, reviewed staff’s request to grant a series of easements and rights-of-way for the radial line from the Garrison Energy Center (GEC) to the Cartanza Substation. He noted a correction to the documentation provided in the Committee Action Form (CAF), dated January 22, 2014, related to this item. Although the CAF indicated that Document “A”, Document “B”, and Document “C” would grant easements and rights-of-way to Delmarva Power & Light Company (DP&L), he explained that Document “A” and Document “B” would grant easements to DP&L but that Document “C” was the original easement to the GEC which will subsequently be turned over to DP&L at some point in the future.

UTILITY COMMITTEE MEETING JANUARY 27, 2014 PAGE 5 Staff recommended authorizing the City Manager to execute the final versions of all components of Document “A” and Document “B”, which are easements to DP&L, as well as Document “C”, the original easement to the GEC which will subsequently be turned over to DP&L at some point in the future after construction, for the granting of easements and rights-of-way to both DP&L and the GEC for the proposed construction, operation, and maintenance of power lines and structures associated with the transmission of electric power from the GEC to the Cartanza Substation; and authorizing the City Manager to amend the original lease between the City of Dover and the Garrison Energy Center, LLC to add the acres described within the documents (a total of 8.4301 acres) in accordance with the rents described in the lease. Mr. Koenig advised members that instead of being paid for the easements, the City Manager would amend the master lease with the GEC to include the easement areas as part of leased land, so that the City would be financially compensated for it throughout the agreement period with GEC. Responding to Mr. Blakeman, Mr. Koenig stated his understanding that DP&L would own and be responsible for maintenance to the radial line from Calpine to the Cartanza Substation. In response to Mrs. Williams, Mr. Koenig stated that the voltage for the radial line would be 230kV. Responding to Mr. Hutchison, Mr. Koenig stated that construction of the 16" gas line, the GEC, and the radial line was scheduled for completion by the end of 2014. The GEC was expected to produce power to the PJM (Pennsylvania, Jersey, Maryland Power Pool) grid in June 2015. Mr. Perza moved to recommend approval of staff’s recommendation to authorize the City manager to execute the final versions of all components of Document “A” and Document “B”, which are easements to Delmarva Power and Light (DP&L), as well as Document “C”, the original easement to the Garrison Energy Center (GEC) which will subsequently be turned over to DP&L at some point in the future after construction, for the granting of easements and rights-of-way to both DP&L and the GEC for the proposed construction, operation, and maintenance of power lines and structures associated with the transmission of electric power from the GEC to the Cartanza Substation; and to authorize the City Manager to amend the original lease between the City of Dover and the Garrison Energy Center, LLC to add the acres described within the documents (a total of 8.4301 acres) in accordance with the rents described in the lease. The motion was seconded by Mr. Blakeman and unanimously carried. (City Clerk’s Office Note: Due to time constraints, this item was placed on the Council agenda for the meeting being held later in the evening.) By unanimous consent, the meeting adjourned at 6:00 p.m. Beverly C. Williams Chairwoman BCW/TM/dd/js S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Minutes\2014\01-27-2014 UTILITY.wpd

LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE The Legislative, Finance, and Administration Committee meeting was held on January 27, 2014, at 6:03 p.m. with Chairman Lynn presiding. Members present were Mr. Hare, Mr. Slavin, Mr. Rushe, and Mr. Shevock. Members of Council present were Council President Bonar (arrived at 6:04 p.m.), Mr. Dixon (arrived at 6:06 p.m.), Mrs. Williams, and Mr. Hutchison. Mayor Carey was also present. AGENDA ADDITIONS/DELETIONS Mr. Shevock moved for approval of the agenda, seconded by Mr. Rushe and unanimously carried. Review of Proposed Acceptable Use Policy (Information Technology) Mr. Scott Koenig, City Manager, advised members that the purpose of the Acceptable Use Policy (Information Technology) was to provide general guidance for all employees, as well as contractors and other “users” of the City’s communications and computer systems. This policy, if adopted, would be applicable to anyone accessing the City’s network. It would not apply to the Police Department, Fire Department, or Library except for those individuals who log on to the City’s network. He noted that this matter had come up during the City’s financial audits and in relation to insurance renewals and it was desired to ensure that the City was doing everything possible to protect the computer network. Staff recommended adoption of the proposed Acceptable Use Policy. Responding to Mr. Rushe regarding the lack of a social media policy, Mr. Koenig stated that staff had attempted to bring forth such a policy approximately two (2) years ago and encountered some issues that complicated that process. He stated that if a social media policy were brought forward again, it would not be part of the City’s Acceptable Use Policy for information technology. Mr. Slavin inquired if a hard copy signature would be required on the form, noting that as an employee of the State of Delaware, he is required to accept a similar policy each time he logs in and inquired if the City required tacit approval upon sign-in. Responding, Mr. Andy Siegel, Information Technology (IT) Director, explained when users log into the network they are greeted by a banner that notifies them that they are signing onto a City network and they must agree to the policies set forth by the IT Department. Mr. Hare noted State employees are unable to access sites not approved by the State and inquired if this was the case in the City. In response, Mr. Siegel stated that the City has had internet filtering for many years; however, to this point there had been no policy to specifically address what employees can or cannot do. With the new policy, an employee would be aware that they would be breaking an actual policy if they access a prohibited site. Mr. Bonar noted that the State had IT training programs available. He inquired if staff had looked into providing this type of training for the City’s internet and computer users and if there were fees involved. Responding, Mr. Siegel explained that approximately two (2) years ago staff had put out a program entitled “Securing the Human,” which included approximately 15-20 minute vignette videos about aspects of computer security, internet security, and home computer security. In the past year, staff had renewed this program and planned to provide this information to users again.

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING OF JANUARY 27, 2014 PAGE 2 Mr. Bonar noted that users of State systems are required to successfully pass a quiz in order to be receive certification. He encouraged Mr. Siegel to contact Mr. Kevin Wright, Delaware Department of State, for further information. Mr. Hare moved to recommend adoption of the Acceptable Use Policy (Attachment #1), as recommended by staff. The motion was seconded by Mr. Rushe and unanimously carried. Request for Continued Staff Support - Downtown Dover Partnership (DDP) Mr. Scott Koenig, City Manager, advised members that the City had received a request from the Downtown Dover Partnership (DDP) to continue staff support to the DDP through the end of Calendar Year 2014. Currently, staff support includes one (1) Administrative Assistant and one (1) Downtown Coordinator. Since these employees report to the Mayor, Mr. Koenig did not offer an opinion regarding the staff support; however, he recommended that continued staff support be tied to fiscal years rather than calendar years for budget purposes. The City Manager recommended that the Committee receive verbal testimony from the DDP representative attending the meeting and then formulate a recommendation to City Council based on the testimony of any interested parties. He reiterated that any recommendation should be tied to fiscal years rather than calendar years. Mr. Lynn advised members that he reviewed the City’s Charter and Code of Ordinances and stated his understanding that the employees in question are shared between the Economic Development Office and the DDP and serve under the Mayor’s umbrella. Confirming, Mr. Koenig stated that in the Fiscal Year 2013 budget, Council assigned the Economic Development staff to the Mayor’s Office. Mr. Lynn stated his concern regarding whether the Committee should have a role in assigning duties or responsibilities to these individuals. He questioned how it was under the purview of Council if the Mayor elected to share these employees with the DDP, separate and apart from the budgetary impact, which he noted would come under the purview of Council. He questioned if this matter was appropriate for discussion by the Committee. Mr. Koenig stated that the Charter specifically assigns police officers to the Mayor and that Council does not have authority over the Mayor in this regard. Council acted previously to assign the Economic Development Office positions to the Mayor and it was his opinion that Council has the ability to weigh in on how they are assigned if Council so chooses. Mr. Lynn stated his position that, given that these were Mayoral employees, members would be specifically precluded from interfering except in regard to the budgetary fallout from the decision. He cited Subpart A - Article III - City Manager, Section 36 of the City of Dover Charter which states that “Except for the purpose of inquiries, and investigations by council under section 39, the council or its members shall deal with city officers and employees who are subject to the direction and supervision of the city manager solely through the city manager, and neither the council nor its

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING OF JANUARY 27, 2014 PAGE 3 members shall give orders to any such officer or employee, either publicly or privately.” Given that these employees report directly to the Mayor, rather than the City Manager, he did not feel that the Committee could make this decision. Mr. Hare agreed that “giving orders” was beyond the purview of the Committee. It was his recollection that during the FY 14 budget process, a certain amount of funds was appropriated through June 30, 2014 for these positions and that next year, if the Mayor had funding in his budget to allocate for the following six (6) months (through December), Council had no say in this matter. However, if the Mayor would require additional funds to be added to his budget, then he felt that the Committee should discuss this. Mr. Koenig stated his recollection that when the FY 14 budget (beginning July 1, 2013) was developed, $162,400 was transferred to the DDP, which included funds to hire staff. The DDP asked to use City staff in the transition period to carry them through adoption of the FY 14 budget and subsequently submitted an additional funding request to carry the DDP through the end of calendar year. He stated that funds sent to the DDP were tied to specific expenses. He noted that the adopted City budget includes a staff budget for Economic Development. Mr. Koenig advised members that the Economic Development Office does not have many operating expenses and that 95% or more of its budget is driven by personnel costs associated with the three (3) employees. He stated that the DDP will again be asking for funds for the future and had submitted a draft request to the City Manager late last week regarding the FY 15 budget. Mr. Hare questioned if additional funds were being requested for staff transition and inquired what happened to the $162,400 that was allocated for the DDP to transition to their own staff. Mr. Lynn expressed his understanding that the DDP was not asking for any expenditure of funds from the City at this time but simply that the City allow for the Mayor to share his employees. He noted that the budgetary impact would be considered as Council goes through the budget hearings. Mr. Hare inquired about the status of the DDP in regard to hiring their staff and questioned if the City had committed for City staff to serve through June 30, 2014 in the FY 2014 budget process. Responding, Mr. Koenig stated that the original request was for support through June 30, 2013; however, Mr. Koenig and the Mayor had agreed that the DDP needed a transitional period and extended staff support through the end of Calendar Year 2013. The DDP had since asked for support through Calendar Year 2014 and this had prompted the current request. Mr. Slavin stated his appreciation to Mr. Lynn for raising the issue that these were the Mayor’s employees and reminding members of the Charter provisions. He stated that, as a Council, members had always been very careful about this clause in the Charter and he recalled previous difficulties with Council members who went directly to subordinate members of the staff of Council appointees. Noting that this provision was put in the Charter for a reason, he suggested that members respect it and stated that these were the Mayor’s employees to do with as he sees fit. Mr. Slavin acknowledged that there would be budget issues and felt that the proper venue for this matter would be when the budget is discussed later in the year.

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING OF JANUARY 27, 2014 PAGE 4 Noting Mr. Koenig’s comment that he and the Mayor had extended the period of this loan of staff by six (6) months, Mr. Slavin questioned if this decision was based on the Mayor’s authority to extend and the City Manager’s advice. Concurring, Mr. Koenig stated that he and the Mayor discussed this and felt it was appropriate to extend support through Calendar Year 2013. He explained that this was a mutual understanding between himself and Mayor Carey. Since a mutual decision was reached between the City Manager and the Mayor previously, Mr. Slavin inquired why there was now a difference of opinion. Responding, Mr. Koenig stated that the specific request was for support for Calendar Year 2014, which crosses multiple budget years. He noted that he had no feeling one way or another if staff was to be extended to the DDP; however, he requested that any extension granted be based on the fiscal year versus the calendar year. Mrs. Williams stated that pieces of history were missing in the discussion. She recalled that the DDP had an opportunity to take over the staff and chose not to do so, and the staff were brought under the City’s auspices and placed under the Mayor so that they would not lose their jobs. The employees were then loaned back to the DDP for half a year while the DDP interviewed their own personnel. She noted that the DDP’s personnel were not in place; therefore, the City was in the same position it was in two (2) years ago. She felt that the City was “going around in circles” and spending a great deal of money. Mr. Hare stated that he had no problem allowing staff to continue until the end of June and that he was under the impression that they were already covered until June 30, 2014. It was his understanding that the DDP would hire their own people with the $162,400. He noted that the situation following June 30, 2014 would be discussed in the upcoming months. He concurred with Mr. Koenig’s request for any extension to be granted on a fiscal year basis. Concurring with Mrs. Williams, he inquired at what point a conversation should be held with the DDP, to be informed of their status in regard to staffing and funding. Mr. Bonar stated that the employees who had been moved under the Mayor’s purview were the economic development arm of the City and also part of the economic development arm in the DDP that is focused primarily on the downtown area, both of which had performed admirably. He noted that it had been a good partnership in that the DDP had brought in several millions of dollars and had “redone” the North Street area. Through the efforts of the DDP and Mr. Gary Patterson, member of the DDP Board of Directors, the Governor had committed to seeing more money funneled to downtown areas of Delaware, including Wilmington, Dover, and other possible locations, which could be used to renovate downtown, as mentioned in his State of the State address. This funding would be decided by the legislature. Mr. Bonar stated that the conundrum was whether two (2) economic development operations were needed in the City or whether all efforts could be combined into one (1) operation. He referenced remarkable events that had occurred at the Garrison Tract over the last year, noting that Uzin Utz was nearly ready to break ground, Calpine was “churning along,” and infrastructure was being developed through the efforts of the City’s Economic Development Office. At the same time, he stated that there was corridor development in the downtown area akin to the Riverfront Development Corporation in Wilmington, which would bring more money to the City for downtown development and enhance the City’s tax base. Mr. Bonar stated that, with the

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING OF JANUARY 27, 2014 PAGE 5 new budget process, it must be decided whether to continue in this vein or streamline operations, combine or separate efforts, or eliminate one (1) of them. He cautioned members that the City should not partner with Kent County for economic development because at some point the County and City would be at odds when trying to bring new business to the region. He felt that this conundrum should be solved in this budgetary cycle and that a decision should be made regarding which direction should be taken so that all would know where economic development was going for the next several years. Mr. Hutchison stated his desire to ensure that the Council supported the DDP’s request. He questioned if Mayor Carey was in favor and if funding was in place to extend staff support as requested. Responding, Mayor Carey stated that funding was in place until the end of Calendar Year 2013; however, he was unsure if the two (2) employees were funded under the City or the DDP. Mr. Koenig stated that all three (3) Economic Development Office personnel were funded in Fiscal Year 2014 through June 30, 2014 as part of the adopted budget; therefore, there would be no budgetary impact. He stated that this was a policy issue. Mr. Hutchison suggested that the Mayor create a master plan for the partnership and its future regarding the issues and concerns expressed during the meeting. Mrs. Williams agreed with Mr. Bonar regarding the existence of a “conundrum;” however, she stated that the City had other economic development partners, including Kent County and the Delaware Economic Development Office (DEDO). She felt that once an approach was determined, memorandums of understanding should be developed to avoid “crossing paths” and duplication of efforts. She noted that there were four (4) economic development groups at present, and only individuals who had been around for some time or were directly involved in economic development could tell the difference between the four (4). Mr. Lynn disagreed with the belief of some Council members that there was a conundrum and felt that all entities were working toward common goals. He advised members that the Appendices to the City’s Code of Ordinances are severely out of date, do not reflect the existence of the DDP, and continue to make references to entities that are defunct, and the funding mechanisms for the Business Improvement District (BID) are operating under appendices in the Code that are no longer valid. He requested that Mr. Koenig address this issue. Mr. Gerald Street, 39 Hazel Road, member of the DDP Board of Directors, stated that Mr. Lou Colón, Executive Director of the DDP, had planned to attend the meeting but Mr. Street advised him that he would attend instead, stating that he had a broader understanding of the DDP’s circumstances and was very sensitive to people spending time away from their families at night unnecessarily.

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING OF JANUARY 27, 2014 PAGE 6 Mr. Hare moved to recommend acceptance of the City Manager’s recommendation to extend it for a fiscal year since the employees are already covered and then, in the future, discuss it with the Mayor during the budget hearings. The motion was seconded by Mr. Shevock and carried by a vote of three (3) yes (Hare, Rushe, and Shevock), one (1) no (Lynn), and one (1) abstention (Slavin). Mr. Slavin stated that his abstention was due to his position as the Governor’s appointee on the DDP Board of Directors. By unanimous consent, the meeting adjourned at 6:35 p.m. Sean M. Lynn Chairman SML/TM/js/dd S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Minutes\2014\01-27-2014 LF&A.wpd Attachments Attachment #1 - City of Dover Acceptable Use Policy (Information Technology)

ATTACHMENT #1 LF&A Committee Meeting of 01/27/2014 City of Dover Acceptable Use Policy A Message to all System Users This document formalizes the City policy for all employees as well as contractors and other “users” of our City’s communications and computer systems. Each department may also choose to develop and enforce its own acceptable use policies to further regulate use within its local environment. This Acceptable Use Policy is your resource to help you make sound decisions in using communications and computer systems to do your job. Our goal is to put controls in place that will help protect the City from sabotage and espionage. The threat is real, as each month, IT intercepts hundreds of viruses and suspicious messages containing executable files trying to bypass our security systems. These controls also help minimize the potential risks of misuse. This misuse includes unnecessary Internet usage causing network and server congestion. This Acceptable Use Policy is your (the user’s) guide for helping us achieve this goal by conducting City of Dover business with integrity, respect, and prudent judgment. Each department is responsible for the activity of its users and for ensuring that its users follow this Acceptable Use Policy. Violations not promptly remedied by the user may result in termination of these services. Introduction Users are accountable for familiarizing themselves with this policy and using it as a guidepost for your daily decisions and actions when using these services. Read the policy and give careful attention to those subjects that most pertain to your job duties. Understand the purpose of this policy and your overall responsibilities for standards of business conduct. Consult with your supervisor or the IT Department for additional clarification of this policy. Note the Following: Applicability City of Dover’s expectations for responsible use are applicable to all parties who use the City communications and computer systems on behalf of the City, including, but not limited to, its employees, consultants, in-house contractors, and other “users.” Limitations This acceptable use policy does not address every possible scenario or condition regarding acceptable use. If it is not specifically addressed within this document, consult with IT. Acceptable Use of Communications and Computer Systems City of Dover communications and computer systems are vital to our business and critical to overall 1

communications. Our success is directly related to safeguarding and properly using these systems. What are City communications and computer systems? City of Dover communications and computer systems are any equipment, hardware, software, or networks (including wireless networks) owned, provided or used by or on behalf of the City of Dover that store or transmit voice or non-voice data. This includes telephones, cellular/wireless telephones, voice mail, computers, e-mail, facsimiles, pagers, and City Intranet or Internet access (including when accessed through personally owned computers). Note: When personal computers are not owned by the City but are used for City business, the City retains the right to access any City records or materials developed for City use. Also, we must ensure that any City materials are appropriately safeguarded according to applicable standards in this section, including, but not limited to, virus protection of, protected access to, and backup of these materials. Access, Maintenance and Protection Users must safeguard the confidentiality and integrity of City systems, including strong password logons (see \\Dover_1\public docs\How to\Creating a Secure Password.doc), access codes, network access information, log-on IDs from improper access, alteration, destruction, and disclosure. Users shall only access or use these systems when authorized. Users must abide by City standards contained in this section and any other City policies regarding protecting data and information stored on these systems. Unlawful and Inappropriate Use Users are obligated to never use City systems (such as the Intranet or Internet) to engage in activities that are unlawful, violate City policies, or in ways that would:  Be disruptive, causing unnecessary offense to others.  Be considered harassing, discriminatory, or creating a hostile work environment.  Result in the City of Dover’s liability, embarrassment, or loss of reputation. External groups or organizations are not permitted to access the City’s computer network, except as permitted by IT. Protection and Integrity of Data Users must maintain the integrity of City information and data stored on City systems by:  Introducing data into our systems that serve a legitimate business purpose.  Only acquiring, using, altering, disposing of, or destroying data or information with proper authorization.  Protecting data and information stored on or communicated across our systems and not accessing this data or information (customer data, employee records, etc.) unless authorized.  Protecting data and information communicated over internal or public networks (the internet) to avoid compromising or disclosing nonpublic City communications. Personal Use While City systems are intended for primarily business/instructional purposes, limited (incidental and occasional) personal use may be permissible when authorized by your manager and it does not:  Interfere with your work responsibilities.  Involve interests in personal outside business and/or other non-authorized organizations and 2

activities (including, but not limited to selling personal property/items or soliciting for or promoting commercial ventures, charitable, religious, or political activities).  Violate any of the standards contained in this code or other City policies.  Downloading of music and video files is specifically forbidden. Virus Protection If users suspect a virus, they must not use the applicable computer systems and equipment until the virus is removed and they will report the matter immediately to the IT Department. The City of Dover has purchased anti-virus software for all city computers, including home computers. Contact IT staff for a copy to be installed on your home computers. Properly Licensed Software Users will use only approved and properly licensed software and will use it according to the applicable software owner’s license agreements. Installing any software, including freeware (screensavers, browsers, etc) is prohibited unless approved by IT. Treatment of Third-Party Data or Software Users must ensure that any nonpublic City information or software of a third party that is stored, copied, or otherwise used on City systems is treated according to City of Dover’s standards regarding nonpublic City information and applicable agreements and intellectual property restrictions. City of Dover Monitoring City communications and computer systems, including, but not limited to, computer networks, data files, e-mail and voice mail, may be monitored and/or accessed by the IT Staff and your management to ensure the integrity of the technology, protect against fraud and abuse, detect unauthorized access or use, and for other business purposes. Although the IT Department does not routinely monitor message or network transactions, IT may, without notification or approval, monitor, access and review any and all communications originating from the City of Dover or delivered to the City of Dover – employees should have no expectation of privacy in regard to use of these services. USE OF EMAIL AND THE INTERNET Inappropriate use of e-mail includes, but is not limited to, sending or forwarding:  Messages, including jokes or any language that may be considered discriminatory, harassing, unlawful, defamatory, obscene, offensive, insensitive, or otherwise inappropriate (this includes but is not limited to messages about age, race, gender, disability, national origin, any other legally defined discriminatory classifications or similar matters.)  Pornographic or sexually explicit materials.  Chain letters.  Information related to religious materials, activities, or causes – including inspirational messages.  Solicitations unless sanctioned by the City of Dover.  Auction-related information or materials unless sanctioned by the City of Dover.  Games or other software copyrighted materials without a legitimate business or instructional purpose (and then only according to the rights and licenses granted by the owner of the games, software, or copyrighted material.)  Messages that disparage other companies or products.  Materials related to personal commercial ventures or solicitations for personal gain (including, but 3

not limited to messages that could be considered pyramid schemes).  Information related to political materials, activities, or causes unless sanctioned or permitted by the City of Dover.  Unauthorized or inappropriate mass distribution of communication.  Any other materials that would be improper under this policy or other City of Dover policies. Inappropriate use of the Internet includes, but is not limited to, accessing, sending or forwarding information about, or downloading (from):  Sexually explicit, harassing, or pornographic sites.  “Hate sites” or sites that can be considered offensive or insensitive.  Auction sites for personal use.  Gambling sites.  Non City of Dover business-related chat sites.  Underground or other security sites which contain malicious software and/or instructions for compromising City of Dover security.  Games, software, audio, video, or other materials that are not properly licensed to use or transmit, or that are inappropriate.  Offensive or insensitive materials, such as sexually or racially oriented topics.  Intentional importation of viruses. REMEDIAL ACTION When IT learns of a possible inappropriate use, IT will immediately notify the employee or supervisor who must take immediate remedial action and inform IT of its action. Repeated violations will be addressed with the Department Head. In instances where criminal activity is suspected, IT will work directly with the proper authorities, and follow their guidance in determining appropriate action. Inappropriate use of City communications and computer systems may be grounds for discipline up to and including dismissal. In an emergency, in order to prevent further possible unauthorized activity, IT may temporarily disconnect that employee or building from the network. If this is deemed necessary, every effort will be made to inform the employee or building personnel prior to disconnecting, and every effort will be made to reestablish the connection as soon as it is safe to do so. Unauthorized activity or non-acceptable usage determined at the department level may be subject to remedial action being taken in accordance with the acceptable use policy of that department (if applicable) as well as those actions outlined above. The remedial action outlined in departmental policies may differ from the remedial action as outlined in this policy. Should there be any conflict, Human Resources will make a determination as to applicability. QUESTIONS OR COMMENTS ON THIS POLICY Please address any questions or comments to the IT Director. 4

ACKNOWLEDGMENT STATEMENT City of Dover - Acceptable Use Policy City Employee This is to certify that I have read and agree to abide by the guidelines set forth within the City of Dover Acceptable Use Policy. As an employee of the City of Dover, I fully intend to comply with this policy realizing that I am personally liable for intentional misuse or abuse of the City's communications and computer systems. If I have any questions about the policy, I understand that I need to ask my supervisor or IT for clarification. *If I refuse to sign this acknowledgement form, my supervisor will be asked to sign this form indicating that I have been given time to read and have questions answered about this policy. The supervisor will read this statement to me prior to signing the document and advise me that by not signing this document my rights to use the City’s Communications and Computer Systems may be denied and may affect my ability to meet my job requirements. Printed Name: ___________________________________ Signature: ______________________________________ Department: ____________________________________ Date: __________________________________________ Supervisor Signature (*as required) __________________________________________________________________ Comments: __________________________________________________________________ 5

ACKNOWLEDGMENT STATEMENT City of Dover - Acceptable Use Policy Non-City Employee This is to certify that I have read and agree to abide by the guidelines set forth within the City of Dover Acceptable Use Policy that apply to my use. (Some users may use a combination of communications and computing resources.) As an authorized user of the City of Dover’s communications and computing resources, I fully intend to comply with this policy realizing that I am personally responsible for intentional misuse or abuse of the City's communications and computer systems. I understand that the City of Dover has no authority over non-city employees. However, all users must agree to abide by all policies, standards promulgated by the IT Department as a condition of access and continued use of these resources. If IT learns of possible inappropriate use, IT will immediately notify the affiliate responsible, which must take immediate remedial action and inform IT of its action. In instances where affiliates do not respond in a timely or reasonably appropriate manner, are "repeat offenders”, or if criminal activity is suspected, IT will work directly with the proper authorities, and follow their guidance in determining appropriate action. In an emergency, in order to prevent further possible unauthorized activity, IT may temporarily disconnect the user or affiliate. If I have any questions about the policy, I understand that I need to ask IT for clarification. *If I refuse to sign this acknowledgement form, my rights to use the City’s Communications and Computer Systems may be denied and may affect my ability to meet my job requirements. Printed Name: ___________________________________ Signature: ______________________________________ Company: ______________________________________ Date: __________________________________________ Witness:________________________________________ Witness name (printed)____________________________ 6

EXCERPT - REGULAR COUNCIL MEETING OF DECEMBER 9, 2013 The following is an excerpt of the Regular Council Meeting minutes of December 9, 2013: UTILITY COMMITTEE REPORT - NOVEMBER 25, 2013 The Utility Committee met on November 25, 2013 with Chairwoman Williams presiding. Electric Supply & Generation Members were provided information regarding Electric Supply and Generation, as follows: McKee Run Units 1 & 2 - Cost/Benefit Analysis Mr. Scott Koenig, City Manager, reviewed a Presentation - Cost/Benefit Analysis for City of Dover for McKee Run Units 1 & 2, as prepared by Mr. Robert Trinnear, The Energy Authority (TEA). Referring to Slide 13, Mr. Blakeman questioned if there were a means of quantifying the risk of operational failure. Responding, Mr. Koenig stated that he would contact representatives of both TEA and North American Energy Services (NAES) to obtain this information. In response to Mr. Blakeman with reference to Slide 14, Mr. Koenig stated that borescope inspection logs did not indicate any required repairs and/or improvements that were not already included in the City’s Capital Improvement Plan (CIP). Based on current knowledge, he assured members that the only repairs and/or improvements anticipated were those listed in the CIP. Responding to Mrs. Williams regarding the cost of “mothballing” these Units, Mr. Koenig stated that TEA and NAES had been requested to provide a price; however, staff anticipated that this amount would be costly (in the high six to low seven figure range) due to asbestos and other issues associated with the Units. Mr. Snaman questioned if the new power plant (Calpine) could affect the details regarding Units 1 and 2. Responding, Mr. Koenig explained that if the City entered into a purchase power agreement with Calpine, the City could replace the capacity of Units 1 and 2 with capacity from the Calpine Project, which would be a negotiated item and was scheduled for discussion later in the meeting, under Item #1C. Mrs. Williams relayed concern with proceeding since there were so many uncertainties. Mr. Kirk Betts, Betts & Holt LLP, the City’s Energy Attorney, stated that there was not as much uncertainty as there appeared to be but there were several risks. He explained that some life extensions were previously done to Units 1 and 2 to keep them “alive;” however, prior to the Calpine project, the lease arrangement at the Garrison Tract included the opportunity to purchase 50 MW of capacity based on the belief that Units 1 and 2 would not survive. He stated that the Units are not as reliable as needed, which poses a risk. When the Units are supposed to come up and they do not, the City is penalized financially as well as with regard to reserve requirements and does not get the capacity credits needed. While these costs have not yet been quantified, they exist. He advised members that another risk was the capacity price of $119 per megawatt day (MWd) which was expected to be in the range of $150, $180, and $200 per MWd, but noted that this was not fully quantified because the PJM market only extends out three (3) years. He explained that this type of spread reduces the value of the plant and, with the addition of the costs for operating those Units including the NAES costs and the capital costs indicated in the CIP, there is a very low margin.

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 2 With a low margin area of approximately $250,000, for example, the City would be totally at risk and one (1) or more operational failure or forced outage could result in the City being “in the hole.” While these numbers had not been quantified, he explained that they appear more and more threatening in terms of the value of the plant. Mr. Betts explained that another issue with old units such as these is that spare parts are not available and must be manufactured. He explained that manufacturing parts for an antique piece of equipment costs more and the value is not recovered; therefore, the cost just to repair Units 1 and 2 would be extraordinarily high. He reminded members that Units 1 and 2 were being kept for capacity plays, and when the capacity market goes down, the value disappears. Although the City does not need the Units for energy, they must be able to operate. He noted that the heat rate for these Units is very high, at least 13,000 btu’s per kilowatt hour, whereas the competing Calpine unit is approximately half of that. Therefore, the Units are a non-competitive resource that the City pays a lot of money for in order to have capacity and the value is continuously decreasing. While not fully quantified, these are the real risks involved with these two (2) Units. Responding to Mrs. Williams, Mr. Betts explained that maintenance for Units 1 and 2 should have been done gradually over time but was deferred in previous years to avoid the additional capital cost, which is the reason for the major $2.4M “hit” in budget for Fiscal Year 2018. He stated that the capacity market has dropped significantly, and the PJM capacity market has many components. He advised members that Converge, an Arrow Electronic Company, has been working, primarily with refrigeration, to find ways to replace capacity in the marketplace by allowing customers to go offline for a couple of minutes at a time. In the past, customers had generation in reserve or brought up generation to meet the voltage requirements; however, since customers are able to meter the load precisely and changes are computerized, they are able to go offline and reduce load instead of bringing capacity on. He stated that last summer in this region, more than 1,000 MW(the amount of a nuclear plant) were taken offline voluntarily by customers who received a notice the day before indicating if they went offline the next day between certain hours, they would be compensated a certain amount per kilowatt hour not used, which had a huge impact on the marketplace. The current market is very different and continuously changing; therefore, the way in which customers invest and adapt to the changes are also different. Mr. Betts expressed his opinion that the market is not fixed but in some areas it is very tight; for example, in New Jersey the current capacity price is almost $300 per MWd, whereas in Dover it has dropped. He explained that the Garrison Plant’s 300 MW has a huge impact on costs on the Delmarva Peninsula because it is gas operated, fast, has relatively low personnel costs, and can bid into the market very aggressively. In regard to transmission costs, Mr. Betts explained that there has been a huge amount of transmission expansion in PJM, which has resulted in a reduction of the number of power plants constructed. It is a very dynamic market and, with 13,000 heat rate units, the City must consider whether, even if investment were made in Units 1 and 2, there would be value going forward and how much value that investment would have in the next five (5) to 10 years. Mrs. Donna Mitchell, Controller/Treasurer, advised members that the 2016/2017 forecast was completed last May and, at that time, the capacity price was $193 per MWd. The price was now at $119 per MWd; therefore, she stated that the capacity revenue would change accordingly. She noted

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 3 that a leak on a gasket on Unit 1 had to be repaired last year and the costs were over budget. In addition, she expressed concern regarding costs involving Unit 3. She stated that it had been borescoped and will be opened up for repair. This was scheduled as a three (3) year project which started with a $1.21M budget for the turbine repair and generator; however, the bids received for the turbine were excessive, so the generator was done separately at a cost of $276,000. The costs for the turbine repairs for Unit 3 were currently up to $1.6M, and she noted that when it is opened, additional repairs may be required which would increase the costs. In response to Mr. Perza, Mrs. Mitchell stated that staff’s recommendation would not include bidding Units 1 and 2 in the PJM market beyond Fiscal Year 2017 since staff anticipated a joint agreement with Calpine or another capacity agreement to pick up 34 MW. She confirmed that it was staff’s recommendation not to fund capital improvements to bring the Units up to current standards and not to fund these Units beyond the next three (3) years. If the Units began to fail in the next year or two (2), she stated that the City would have the option to pull the Units out of the PJM market instead of investing capital into them; however, the City would have to pay for the capacity and pay a forced outage penalty if the Units went down when scheduled to run. In order to meet the December 1, 2013 deadline, it was staff’s plan to bid the Units into the capacity auction for the 2017/2018 planning year at $311per MWd to ensure they do not get called on and the City recoups the money, as recommended by TEA. Noting that the City was obligated to keep Units 1 and 2 operating since they have been included in the auction for the next couple of years, Mr. Slavin questioned if the Units would be revenue positive to the City based on the assumption that the market does not completely bottom out on the capacity side. Responding, Mrs. Mitchell confirmed that they would be revenue positive through Fiscal Year 2017 based on the analysis. She indicated that if the Units were unavailable to run when required, the City would be able to decide whether or not to pay for repairs at that time. Mr. Slavin questioned the net effect on the City’s revenue if it was decided not to keep Units 1 and 2 online beyond 2018. In response, Mrs. Mitchell stated that staff had only forecasted out to the 2018 PJM year; however, according to Mr. Betts, the replacement capacity costs would define whether the City was “in the money or not” for those Units. Responding to Mr. Blakeman, Mrs. Mitchell referred to the projected incremental operating costs indicated on Page 19 of the presentation and indicated her opinion that the $1M amount could decrease more since staff was currently negotiating contracts. Staff recommended, for the short term, that Units 1 and 2 not be offered into PJM’s capacity auction for the 2017/18 delivery year; that a comprehensive analysis be performed that lays out all the decision options for the City of Dover; that a similar analysis on other parts of the generation portfolio be completed; and that all supply options be surveyed, including new generation projects in and around Dover and Power Purchase Agreement (PPA) opportunities. Mr. Perza questioned the future impact on revenues if these Units are shut down, irrespective of how much it would cost to get the turbines up and running, and how members could make an assessment and final decision regarding this matter if staff had not planned beyond 2017. Responding,

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 4 Mrs. Mitchell stated that one (1) of the factors to consider in determining whether the Units should be shut down or not would be the capacity auction, as well as the figures received from TEA. She noted that if the City can obtain the capacity cheaper from Calpine, it may not be advantageous to keep Units 1 and 2 running. Elaborating, Mr. Betts indicated that there were a lot of “moving pieces,” one (1) of which was the renegotiation of the NAES Agreement, which may lower operating costs. The other was whether the City would be able to have Garrison or some other entity buy replacement capacity, noting that if the City were able to obtain a longer-term offer, it would provide a benchmark price to compare with the cost to operate the Units. Both of these were on a relatively “fast track,” which would allow for a longer-term budget analysis for members to review. Mr. Betts stated that it is an imperfect system. In a dynamic market, no one knows what the energy prices will be in four (4) years, but the hope is that energy will still be consumed at a consistent rate. It is known that the capacity market is changing, so staff, including himself, must consider the best case, examine the alternatives of keeping the Units running, and make projections based on historic costs versus replacement capacity. It was his opinion that this would be the basis for the estimate built into the City’s overall operating budget for the utility. Mrs. Williams questioned whether Mr. Betts had any concern regarding negotiating an agreement with Calpine since the City incurred great expense and gave land to them. Responding, Mr. Betts stated that he and staff would do their best to hold Calpine to the terms of the contract, which provided for at least 50 MW at a cost that was established as the actual construction costs less the development costs. If Calpine is willing to abide by the contract terms, he believed there could be an opportunity for negotiation that may be favorable for the City. As a competitive strategy, he stated that the City should also consider other available capacity. He stated that the City not only offered the benefit of the land provided to Calpine but can also provide constant cash flow, which they cannot necessarily get from PJM. He also suggested that the City use its monopoly power as a water supplier to encourage negotiation. In response to Mrs. Williams, Mr. Betts confirmed that Calpine does not have internal “inside the fence” capacity, which could also effect negotiations. Mr. Betts advised members to consider the cost and value of the City’s reliability to “island” the City, notwithstanding occurrences in the region. He stressed the importance of the comprehensive analysis proposed by TEA, and that consideration be given to the reasons the City is in the municipal utility business, including reliability, costs, and the attractiveness of the City to outside potential buyers. He stressed that reliability is critical and if it were desired to bring in a data center, as was discussed in previous years, reliability must be at 99.9%. He stated that, with PJM, there had been huge investments in transmission that was not in existence 10 years ago. He noted that there are many rules that apply to the City, in regard to reliability under requirements with PJM and this zone, that have federal implications. The current environment for reliability is very different than it was 10 - 15 years ago, which should be taken into account when considering pricing and value for internal versus external generation. In response to Mr. Perza, Mr. Koenig stated that, to his knowledge, the City had not had a negative cash flow similar to what was projected for Fiscal Year 2017/2018 since contracting with PACE, approximately 15 years ago.

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 5 Responding to Mr. Perza, Mr. Koenig stated that the Units would last as long as the City would be willing to invest in maintenance, which would depend upon economic feasibility. It was staff’s opinion that, at this point, maintaining the Units would probably not be in the City’s best interest financially. Mr. Blakeman stated that prior to his retirement from the City of Dover, approximately 10 years ago, all similar units that were built in 1962 had been retired. Mr. Betts suggested that a comparison of the costs to operate the Units (capital, operating, and gas) with the amount purchased through the PJM power grid or TEA, would provide an indication as to whether the Units should be maintained or not. He suggested that TEA be requested to provide this information to members for their consideration in making a determination. The Committee recommended approval of staff’s recommendations that, for the short term, Units 1 and 2 not be offered into PJM's capacity auction for the 2017/18 delivery year; that a comprehensive analysis be performed that lays out all the decision options for the City of Dover; that a similar analysis on other parts of the generation portfolio be completed; and that all supply options be surveyed, including new generation projects in and around Dover and Power Purchase Agreement (PPA) opportunities. [City Clerk’s Office Note: Subsequent to the meeting, members were provided a memorandum dated December 4, 2013, from Donna Mitchell, Controller Treasurer - Response to Questions, Utility Committee Meeting November 25, 2013, relating to this matter, as well as an Outage Status Report - Week 9, dated November 27, 2013.]. During the Council Meeting, Mr. Lynn stated his objections to the Utility Committee’s recommendation, explaining his opinion that not offering Units 1 and 2 into PJM’s capacity auction for the 2017/18 delivery year would be a tacit endorsement of the culture of neglect engendered by years of Council’s austerity budgets that have artificially kept the City’s tax rates low at the expense of the City’s necessary infrastructure. He reminded members that, as explained by the City’s Attorney, Mr. Betts, maintenance for Units 1 and 2 should have been done gradually over time but was deferred in previous years due to the additional capital costs, which was the reason for the major $2.4M hit in 2018. Mr. Lynn stated that, unfortunately, that the reality is that many City residents will soon learn that the bills are now coming due - parks and recreation facilities need to be demolished as a result of neglect, streets are not being paved, pump stations are aging, etc. Mr. Lynn noted that the City’s infrastructure was showing the signs of City Council’s decisions to defer necessary maintenance and the City had failed to provide preventative care throughout the years; therefore, he stated that he could not support the Committee’s recommendation. Mr. Dixon moved for approval of the Committee’s recommendations that, for the short term, Units 1 and 2 not be offered into PJM's capacity auction for the 2017/18 delivery year; that a comprehensive analysis be performed that lays out all the decision options for the City of Dover; that a similar analysis on other parts of the generation portfolio be completed; and that all supply options be surveyed, including new generation projects in and around Dover and Power Purchase Agreement (PPA) opportunities. The motion was seconded by Mr. Hare and carried by a roll call vote of six (6) yes (Dixon, Perza, Slavin, Hare, Hutchison, and Bonar), one (1) no (Lynn), and two (2) absent (Anderson and Williams).

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 6 VanSant Generating Station Capacity Increase - Cost/Benefit Analysis Mr. Scott Koenig, City Manager, reviewed a Presentation - Cost/Benefit Analysis for City of Dover - Update on VanSant Generating Station Capacity Increase. Staff recommended that staff be authorized to continue to proceed with project implementation and reassess economics after bids for project installation are received and before submitting an offer into PJM for the 2017/18 capacity auction on May 12, 2014, noting that PJM must be notified of intent to bid in Units 1 & 2 by March 1, 2014. Mr. Blakeman questioned whether staff had considered installing a waste heat recovery boiler to create a combined cycle unit. Responding, Mr. Koenig stated that it had been discussed previously; however, it was not included in the most recent reviews. He speculated that there must have been a technical or regulatory issue associated with it. Responding to Mrs. Williams regarding the Indian River Coal Plant, Mr. Koenig stated that it will have an effect on the market, which may have an indirect effect on the City; however, he was not aware of the time frame. The Committee recommended approval of staff’s recommendation. [City Clerk’s Office Note: Subsequent to the meeting, members were provided a memorandum dated December 4, 2013, from Donna Mitchell, Controller Treasurer - Response to Questions, Utility Committee Meeting November 25, 2013, relating to this matter, as well as an Outage Status Report - Week 9, dated November 27, 2013.] By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mr. Hare and carried by a unanimous roll call vote (Anderson and Williams absent). Purchase Power Agreement - Calpine Mr. Scott Koenig, City Manager, advised members that staff intends to seek the assistance of Mr. Kirk Betts, Betts & Holt LLP, the City’s Energy Attorney, for discussions regarding a mutually beneficial contract arrangement for the potential Power Purchase Agreement (PPA) with Calpine. He stated that this information was provided for informational purposes only and that no further action was required at this time. Discussion - Joint Agreement with the Delaware Municipal Electric Corporation (DEMEC) for New Generation Mr. Scott Koenig, City Manager, explained that as a part of staff’s due diligence to examine the possibilities for replacing the capacity of Units 1 and 2, should they be taken out of service, staff intends to meet with the Delaware Municipal Electric Corporation (DEMEC) and/or another partner they may have, to discuss the potential for joint projects, such as capacity improvements, provided a Purchase Power Agreement (PPA) with Calpine cannot be arranged. He stated his preference for keeping the City’s options open moving forward and that he will keep Council updated in regard to all discussions.

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 7 In response to Mr. Blakeman, Mr. Koenig stated that staff would complete financial analyses on all of the available options, and the potential for DEMEC to own part of the City’s units would be open for discussion. Mr. Koenig stated that this information was provided for informational purposes only and that no further action was required at this time. Mr. Slavin moved for acceptance of the Utility Committee Report, seconded by Mr. Hare and carried with Mr. Lynn voting no. S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Packets\2014\UTILITY\02-10-2014\ORIGINALS\12-09-2013 Council Minutes Excerpt.wpd

Monthly Report December 2013 Office of City Assessor

Assessor’s Report Number of Deeds Stamped for the Transfer Tax Dollar Amount for the Month of December 2012/2013 Month of December 2012/2013 28 $50 $41 30 23 Thousands 25 $23 $23 20 13 13 $14 $16 15 10 8 $11 10 2 1 1 0 2013 $1 $0 2013 5 $0 0 2012 2012 First Time Buyer for Month of December 2012/2013 Realty December 2012/2013 Property Sales in Dollars 23 Received Prior to Recording 25 $3 Res. Non-First 20 $3 $2 $2 $2 $2 13 Time Buyers Millions 13 $2 $1 $1 15 10 $0 Res. First Time $1 2013 10 Buyers $0 5 2012 0 2013 2012 Major Updates October - 13 November - 13 December- 13 Assessment Change $390,500 $7,737,800 $1,097,700 Residential Sales Ratio Report Sales in Study Total Assessed Total Sale Price Ratio PRD Value 20 $3,365,600 $2,965,093 1.13 1.08 1

Assessor’s Report Ratio – Assessed Value divided by Sale Price. PRD – Mean – A PRD above 1.03 tends to indicate assessment regressivity – high valued properties are under appraised relative to low valued properties. A PRD below .98 tends to indicate assessment progressivity – high valued properties are relatively over appraised. Points of Interest Scanning & Filing - All new deeds are being scanned and attached to the CAMA software for easy retrieval. - All appeal documents and correspondence are being scanned and attached to the CAMA software for easy retrieval. -All old property record cards are being scanned and indexed into Fortis. 2015 Revaluation - The Assessor’s Office has started the 2015 Revaluation process by visiting various neighborhoods and collecting data, if necessary 2

JAN 24, 2014 CITY OF DOVER PAGE: 1 01:17 PM SALES RATIO REPORT CA324 PARID NBHD LUC ADDRESS UNITS STYLE YRBLT STORIES SFLA GRADE CDU TOTAL APPR SALE DT PRICE ASR ED05-067.09-03-10.00 20A R10 309 PINE VALLEY RD 1 13 1985 2 2378 B- GD 218,900 02-DEC-13 203,000 ED05-067.17-03-20.00 22 R10 110 SHINNECOCK RD 1 5 1992 2 2327 B GD 259,300 06-DEC-13 240,000 ED05-067.19-04-17.00 26 R10 212 MONT BLANC BLVD 1 2013 2 1961 B AV 225,300 19-DEC-13 219,004 ED05-067.20-03-20.00 23 R10 407 N NEW ST 1 14 1950 1 850 C- AV 77,000 20-DEC-13 38,000 ED05-068.10-03-27.00 13 R10 959 CARVEL DR 1 14 1969 1 1120 C AV 151,700 20-DEC-13 140,000 ED05-068.13-01-04.08 53 R50 16 CHATHAM CT 1 13 1985 2 2568 B+ GD 156,700 31-DEC-13 125,000 ED05-068.14-01-32.00 13 R10 341 FREAR DR 1 5 1964 2 1650 C+ AV 163,500 30-DEC-13 160,000 ED05-068.15-03-10.00 16G R10 1413 S HANCOCK AVE 1 3 1988 1.5 2156 C+ AV 190,800 27-DEC-13 155,000 ED05-068.17-02-64.00 8 R10 241 N STATE ST 1 1 1910 2 1870 B- GD 151,800 23-DEC-13 130,000 ED05-068.19-02-47.00 16H R10 207 SHADYBROOK DR 1 8 1997 2 1640 C AV 144,800 30-DEC-13 145,000 ED05-076.03-02-72.00 25 R10 319 TRIBBITT ST 1 13 2009 2 1760 B- GD 171,800 11-DEC-13 125,000 ED05-076.05-01-10.04 17A R10 18 MARSH CREEK LN 1 13 1998 2 1188 C AV 135,000 06-DEC-13 95,000 ED05-076.05-08-21.00 24 R10 120 CHELSEA WAY 1 14 1999 1 1853 B- GD 197,900 06-DEC-13 204,000 ED05-076.06-02-29.00 17B R10 305 STONE BROOK PL 1 13 1984 2 1040 C- GD 115,600 30-DEC-13 79,900 ED05-076.06-09-08.00 17A R50 101 N CAROLINE PL 1 20 1988 1 887 B+ GD 81,500 31-DEC-13 67,500 ED05-076.10-03-42.00 16A R10 1401 WOODMILL DR 1 8 1990 2 1445 C+ FR 129,300 24-DEC-13 67,189 ED05-076.20-01-45.00 5 R10 5 KONSCHAK AVE 1 16 1960 1 1626 C+ AV 176,100 13-DEC-13 153,000 ED05-077.06-01-65.00 8 R10 512 E LOOCKERMAN ST 1 14 1980 1 1344 B- FR 176,900 10-DEC-13 146,000 ED05-077.07-06-97.00 16J R10 131 NOB HILL RD 1 2011 2 3642 B- GD 252,800 20-DEC-13 280,000 ED05-077.11-05-12.00 16J R10 47 MER WAY 1 8 2007 2 2290 B- AV 188,900 06-DEC-13 192,500

CITY MANAGER’S MONTHLY REPORT DECEMBER 2013 City Manager’s Monthly Report, December 2013

Human Resources  Continued contract negotiations. Library  469 attended 68 programs for adults.  362 attended 37 programs for teens.  722 attended 22 programs for children.  33 volunteers completed 348 hours of service.  70 attended 25 programs/classes coordinated through the Job Center. Public Works  Working on CIP and additional funding for future street program and other projects. 2 City Manager’s Monthly Report, December 2013

CUSTOMER SERVICES Customer Service information was not available at the time of submission. The information will be updated in next months report. Please call the City Manager’s Office if you have any questions. Thank you. City Manager’s Monthly Report, December 2013 3

HUMAN RESOURCES Dec Jan Feb Mar April May June July August Sept Oct Nov Dec Category Total 12 13 13 13 13 13 13 13 13 13 13 13 13 Caucasian* 287 288 291 287 287 283 282 281 279 283 284 285 287 N/A * Minorities 57 56 56 54 54 53 53 54 54 54 56 55 56 N/A Hired 6 3 4 0 4 3 1 2 2 7 4 1 3 40 Terminated/ Resigned/ 2 3 1 7 4 8 2 1 3 2 1 1 0 35 Retired/Other Transferred/ 1 1 4 2 1 1 0 2 0 4 1 0 0 17 Promoted Jobs Posted 0 4 1 5 5 5 8 5 5 3 2 0 2 45 Workers Comp. Inju- 4 3 1 2 1 4 3 4 3 7 2 2 1 37 ries Workers Comp. Hours 341 363 315 259 62 28 0 119 62 384 110 48 120 2211 Insurance Claims 2 5 2 2 2 3 7 4 6 2 2 1 4 42 Full-time Employees: 328 Part-time Employees: 15 (4 Pitts Center, 1 Recreation, 9 Library, 1 Customer Service) -Numbers do not reflect, temporary, seasonal, relief fire dispatchers, committee or council members. Positions Hired: Crew Leader, Streets; LAN Analyst, shared position with IT/Police; Customer Service Account Clerk, Collections part-time Positions Posted: Accountant II; Library Assistant, Children’s Services part-time Recruitment Information (Positions closed in December) American Hispan- Asian/Pacific In Out Position Total Female Male Unknown Black White Indian/Alaskan Unknown ic Islander Dover Dover Native Accountant II 28 2 26 0 0 27 0 1 0 0 8 20 Library Assistant, Children’s 1 1 0 0 0 1 0 0 0 0 1 0 (In-House) Unfilled/Open Positions by Department* Unfilled/Open Positions Dec Jan Feb Mar April May June July Aug Sept Oct Nov Dec By Department 12 13 13 13 13 13 13 13 13 13 13 13 13 Electric 3 4 4 4 4 4 4 4 4 4 5 5 5 Public Works 14 11 13 17 19 22 22 20 20 16 15 15 14 Police 4 1 1 2 1 0 1 2 3 3 1 1 1 All Other Departments 7 5.5 6.5 7 7.5 5.5 6.5 6.5 6.5 6 7.5 6.5 5 Totals 26 21.5 24.5 30 30.5 31.5 33.5 32.5 33.5 29 28.5 27.5 25 *Not used for Budgeting Purposes ² The following has been updated to reflected the Fiscal 2013-14 Budget Electric: Electric Director, Electrical Engineer, Senior Lineman, Line Crew Superintendent, Lineman 1 st Class Public Works: Utility Maintenance Mechanic II/Wastewater, Operations -Construction Manager, Building Craftsperson I , Motor Equipment Operator III (Streets), (2) Motor Equipment Operators II (Grounds), Motor Equipment Operator I (Water), Motor Equipment Operator III (Sanitation), Public Works Operation Manager, (3) Civil Engineer l, Utility Construction Worker, Nursery Worker II Police: Communication Operator All Other Departments: (3) Library Assistant (part-time), Library Clerk I (part-time), Planner, Storekeeper Buyer I, Fire Dispatcher 4 City Manager’s Monthly Report, December 2013

HUMAN RESOURCES continued Workers Comp Injuries 20 15 10 5 0 Dec- Ja n- Feb- Ma r- Apr- Ma y- Jun- Jul - Aug- Sep- Oct- Nov- Dec- 12 13 13 13 13 13 13 13 13 13 13 13 13 Electric Public Works Police Others Electric: 0 Public Works: 0 Police: 1 All Other Depts.: 0 Turnover Statistics 2013 * 2010 2011 2012* (CYD) Total Turnover % 5.57 6.75 11.00 10.91 Termination Turnover % 0.27 1.08 0.29 1.47 Resignation Turnover % 2.12 4.05 5.21 5.01 Retirement Turnover % 3.18 1.62 5.50 4.42 * Healthcare cost sharing implemented Average Employees 2010 2011 2012* 2013(YTD) Total Number of Employees Separating from Service 21 25 38 37 Average Number of Full-time Employees 362 356 333 325 Average Number of Part-time Employees 16 15 12 14 * Healthcare cost sharing implemented City Manager’s Monthly Report, December 2013 5

INFORMATION TECHNOLOGY Service Requests Resolved Citizen Action Center - Customers w/ New 250 234 150 Issues 200 177 189 182 130 110 150 130 122 90 115 113 113 104 97 104 101 70 100 103 102 106 50 80 87 50 30 45 58 55 44 56 56 55 57 10 0 Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 12 13 13 13 13 13 13 13 13 13 13 13 13 12 13 13 13 13 13 13 13 13 13 13 13 13 Programming Requests Completed Page Views - City of Dover Web Page 20 35,000 17 15 15 15 30,000 14 14 15 13 13 25,000 12 12 12 Pages Viewed 10 20,000 10 8 29,413 29,435 27,721 25,196 25,562 25,827 15,000 23,956 21,716 21,692 19,308 19,853 19,936 19,884 5 10,000 5,000 0 0 Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Dec- Jan- Feb- Mar- Apr - May- Jun- Jul- Aug - Sep - Oct- Nov- Dec- 12 13 13 13 13 13 13 13 13 13 13 13 13 12 13 13 13 13 13 13 13 13 13 13 13 13 Current Performance Indicators Last Month Same Month Month Last Year iSeries Availability 100% 100% 100% Server Availability 100% 100% 100% AS/400 Connections (concurrent/authorized users) N/A N/A N/A PCs Supported 366 366 358 Scheduled PCs Replaced - - - Servers Supported 19 19 14 People Trained 12 8 19 Availability Statistics based on 7:00 AM until 5:00 PM Monday—Friday 6 City Manager’s Monthly Report, December 2013

LIBRARY Reference Transactions 1200 1000 800 600 400 200 0 Adult Teen Children Dec 13 Adults – 508 Teens – 416 Children – 939 Circulation December 13 FYTD 14 December 12 FYTD 13 Dover residents 19,800 131,673 19,668 106,787 Ebooks 1,280 7,966 1,030 5,061 Kent residents* 13,427 94,999 14,509 82,472 Non-county residents 2,343 14,675 2,234 11,933 Registrations Dover residents 286 2,364 291 2,124 Kent residents* 23 529 124 584 Non-county residents 0 51 15 65 Other Visiting Patrons 20,212 186,505 22,855 154,235 Meeting Room Usage 1,921 13,723 1,482 4,485 Photocopier Usage 952 7,997 1,344 6,617 Computer Printing Usage 2,364 16,391 1,700 9,223 Computer Users 4,122 29,106 4,181 21,368 Wireless Computer Users 1,187 7,578 Holds (Total) 6,065 42,350 5,360 31,793 *Breakout of Kent County Residential Statistics Circulation Registrations Harrington: 336 Harrington: 1 Milford: 54 Milford: 1 Smyrna: 925 Smyrna: 1 Outside City Limits: 12,112 Outside City Limits: 20 Total Registered Users: (Card Holders) City: 22,165 Kent County: 12,787 Outside Kent County: 949 Other Points of Interest: Inter/Interlibrary: 69 items loaned out Technical services: 1,579 items added 28 items borrowed 2,238 items deleted Volunteers: 348 hours of service completed City Manager’s Monthly Report, December 2013 7

PUBLIC WORKS Administration Administrative review and inspection services continued on all residential and commercial developments. The following residential subdivisions are in various phases of construction: Oak Shadows Emerald Pointe Eden Hill (Residential) Patriot Village Farthing Woods Village of Cannon Mill Clearview Meadows Sanitation Monthly Total Refuse (Tons) Sanitation Hours 1,500 1200 956 942 1000 1,000 911 875 840 845 855 810 764 698 790 800 675 673 598 537 600 444 500 390 250 330 298 315 238 263 400 228 276 130 160 171 173 123 109 99 200 26 20 - 0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bulk Collection Mechanized Hand Trash Container 12 13 13 13 13 13 13 13 13 13 13 13 13 Collection Collection Repair/Delivery Bulk Automated Dec 13 Dec 12 DECEMBER 2013 FYTD 14 DECEMBER 2012 FYTD 13 Trips to DSWA Sandtown Landfill 209 1,305 161 1,022 Total Tonnage to DSWA 1,047.54 6,532.89 876.23 4,743.21 90-Gallon Containers Delivered 17 108 8 155 300-Gallon Containers Delivered 0 16 2 16 Total Man Hours-containers Delivered 26 200 20 253 CURBSIDE RECYCLING TOTAL # OF TOTAL # OF STATS HOUSEHOLDS ACCOUNTS WEIGHT/LBS. AVE. LBS. COLLECTED December 2013 19,865 8,833 315,600 15.89 8 City Manager’s Monthly Report, December 2013

PUBLIC WORKS continued Streets DECEMBER 2013 FYTD 14 DECEMBER 2012 FYTD 13 Signed Installed 0 148 5 155 Signs Repaired 1 50 5 64 Curbs Painted Yellow (feet) 0 1,306 5 5,614 New Post Installed 1 32 0 29 Storm Catch Basins Repaired 0 13 0 1 Storm Catch Basin Repairing (Hrs.) 0 65 0 1 Storm Catch Basins Cleaned 15 165 83 444 Storm Catch Basins Cleaning (Hrs.) 2 77 108 295 Hot Mix Patching (Tons) 0 1 0 236 Hot Mix Patching (Hrs.) 0 0 0 283 Cold Mix Patching Hrs.) 15 27 38 281 Concrete Work (Hrs) 20 230 0 273 Concrete Patching (Cubic Yards) 0 21 0 0 Ditch Work (Hrs). 3 63 0 90 Street and Alley Maintenance (Hrs) 49 325 152 1,016 Street Sweeping (Miles) 0 5,192 131 5,223 Street Sweeping (Cubic Yards) 0 1,302 60 1,090 Leaves Collected (Cubic Yards) 2,050 7,401 4,712 14,087 Leaf Collection (Miles) 1,329 3,831 1,304 4,768 Grounds Arborist Crew DECEMBER 2013 DECEMBER 2012 Trees Trimmed 19 29 Trees Removed 10 6 Stumps Removed 5 14  Finished the installation of Christmas lighting displays on The Plaza and on Loockerman Street. Placed trees on the lake. Assisted Streets Division with leaf collection. Beautification Crew  Finished planting tulips.  Picked up and hung Christmas wreaths on City buildings.  Assisted tree crews with tree removals. Mowing Crew  Worked with tree crew on tree removals and stump grinding.  Assisted the beautification crew with planting of the bulbs as well as installation of the Christmas lighting displays.  Hauled debris from retention ponds where Kent Conservation District worked. City Manager’s Monthly Report, December 2013 9

PUBLIC WORKS continued Geographic Information Systems (GIS)  Printed multiple posters for DDP and Economic Development.  Created multiple Miss Utility maps.  Updated hot ix repair list.  Printed multiple posters for the Library.  Collected GPS data for tree plantings.  Created multiple maps for the City Clerk’s office.  Printed multiple maps for Water/Wastewater regarding sanitary sewer  Created right of way dedication maps.  Printed poster for customer service.  Printed multiple maps for snow response maps. Fleet and Facilities Management Fleet Maintenance Work Orders: 691 Major Program Updates Measure DECEMBER 2013 DECEMBER DIFFERENCE 2012 10 out of 28 35.71% 2 - Unscheduled PM’s Vehicles 5 – Sanitation - couldn’t get a hold of truck or shop full. Few people on vacation. 5 - T & D vehicles – (4) Not able to get in Scheduled Preventative Maintenance ap- shop with Electric to get them over. (1) done, 9 out of 19 pointments being kept (Quantity and Percent- -11.66% 1/14/14 47.37% age) 3-Electric Eng. – Haven’t seen trucks (2) vehi- cles at Winner Ford 2 weeks getting transmis- sion installed. Streets - Left 4 days open for Streets dept to bring over anything they needed serviced or prep for snow removal. Facilities Management Routine work orders completed within 5 days 21 out of 24 21 out of 22 -7.,95% (Quantity and Percentage) 87.50 % 91.67% Emergency work orders completed within 2 3 out of 3 3 out of 3 0% days (Quantity and Percentage) 100 % 100 % 10 City Manager’s Monthly Report, December 2013

PUBLIC WORKS continued Water/Wastewater Water Production/Billed Consumption/Flow to Kent County 255000000 205000000 155000000 105000000 55000000 5000000 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 13 13 13 13 13 13 13 13 13 13 13 13 Total Water Prod. Billed Consumpt. Total Flow to County City Readings ENGINEERING SUMMARY Major Program Updates DECEMBER 2013 DECEMBER 2012 DIFF FY14 YTD FY13 State and Federal Violations 0 violations 0 violations - - - Water Quality Complaints 2 1 +1 46 59 Plan Review Completed Within 2 plans 5 plans -3 48 38 30 days of Submission 67% 100% OPERATIONAL SUMMARY Task DECEMBER 13 DECEMBER 12 CURRENT FY Water Production - Daily Average 3,514,065 3,565,710 778,451,000 Average Field Response Time (goal is <30 minutes) 21.70 15.28 17.34 Water Mains Repaired 4 1 8 Water Service Lines Repaired 1 0 6 Wastewater Mains Repaired 0 0 0 Wastewater Service Lines Repaired 0 0 3 Sewer Lines Flushed - linear feet 95,645 92,659 878,567 Sewer Mains Videoed -linear feet 394 15,946 19,783 Total Fire Hydrants in Service 1,807 1,802 1,807 Total Water Meters in City Distribution System 14,171 14,080 14,171 City Manager’s Monthly Report, December 2013 11

PUBLIC UTILITIES Electric System Peak Total System Load 200 100,000 164.2 80,225 150.9 156.8 144.8 70,462 141.5 80,000 67,058 61,952 60,085 60,871 59,792 123.6 57,915 58,635 57,155 150 55,238 55,369 111.22 107.1 105.94 52,890 104.7 102.3 99.89 60,000 99.2 100 40,000 50 20,000 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Outages Customers of Gained/Lost 35 7,000 30 6,000 50 39 25 5,000 40 Outages Customers 20 4,000 30 15 3,000 20 15 10 2,000 9 10 11 9 10 5 7 5 3 2 2 4 5 1,000 0 0 0 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 13 13 13 13 13 13 13 13 13 13 13 13 Outages: 8 Outages Customers: 1,550 Customers Electric Monthly Outage Report The annual outage goal will be less than 295 Controllable Outages Average Response Time minutes per customer, which is a Delaware Annual goal is less than 40 Goal is less than 30 minutes Standard. This will be measured by calculating the System Average Interruption Duration Index. Month Year-to-date Month Year-to-date FY 14 YTD FY 13 FY 12 1 15 27.72 Minutes 26.25 Minutes 66.94 50.74 39.44 DEC 13 DEC 12 FY14 YTD PROGRAM UPDATES Tree Trimming 183 256 1129 Number of Oil Releases 6 1 12 Lost Time Accidents – All Electric Utility Divisions 0 0 1 New Services 5 9 68 Major Goals Completed in the Past Two Months N/A 12 City Manager’s Monthly Report, December 2013

City Planner’s Monthly Report Planning, Inspections & Recreation DECEMBER 2013 Planning, Inspections & Recreation Highlights  Safe Whistles - The Parks and Recreation Department began the “Safe Whistles Program” by con- ducting background checks on our basketball, field hockey and lacrosse league volunteers. All ap- proved volunteers were issued identification badges.  Annual Food Drive - Kicking off the Annual Food Drive our Library, Customer Services, Electric and Police Departments all graciously hosted food collection boxes. Many were filled but there’s always room for more next year! Thank you to all who contributed.  DelDOT’s “Fill the Sleigh” Event - The Parks and Recreation Department partnered with DelDOT to host their second event for employees to have a night of volleyball fun and charitable giving for those in need. We are looking forward to doing this again in 2014.  The Greene Turtle opened at 391 North DuPont Highway on December 4, 2013. Personnel and Training Updates  The Planning Office continues the hiring process to fill the vacant Planner position; an offer has been made to a candidate.  Ann Marie Townshend and Dawn Melson-Williams attended the Annual Meeting of the APA Delaware Chapter on December 11, 2014. The event also included a presentation by Max Walton entitled “Navigating the Legal Landscape – Overview of the New Cases that all Delaware Planners Should Know.”

Planning, Inspections & Recreation Revenue FY '14 Budget FY '14 Actual (YTD) Revenue Stream Business License $1,460,000 $ 1,432,707 98% Trailer License $20,500 $ 21,120 103% Building Permits $400,000 $ 261,753 65% Looking Forward….. Cert. of Occupancy $9,000 $ 3,230 36%  Indoor Field Hockey Leagues for Co‐ Public Occupancy $10,000 $ 1,413 14% Ed and Middle Schools Lodging House $14,000 $ 1,323 9%  Girls Indoor High School Lacrosse Plumbing/Heating/Air $75,000 $ 38,213 51% League Sprinkler $25,000 $ 18,522 74%  Work to being on City Recrea on Needs Assessment Rental Inspection Fee $345,000 $ 26,774 8% Miscellaneous $20,000 $ 21,940 110% Fire Protection Fees $31,000 $ 18,357 59% Vacant Building Reg. $60,000 $ 78,250 130% Total P&I Revenue $2,469,500 $ 1,923,600 78% Recreation $133,000 $66,544 50% PLANNING OFFICE The Planning Office is part of the review process for certain types of construction activity permits (Building Permits, Sign Permits, etc.) and Certificate of Occupancy permits. For December 2013, Planning Staff was involved with review of 40 Permits and 9 Certificates of Occupancy permits (2013 Year to Date total of 866 Permits and COs compared to 923 year-to-date in 2012). Planning Staff also reviews new applications for Business Licenses and Rental Dwelling Permits. COMPREHENSIVE PLAN IMPLEMENTATION Planning Staff continues to focus on the various implementation items identified in the 2008 Comprehensive Plan as amended.  On-going efforts of the Planning Office include participating in planning for the participating in the planning and development design of Garrison Oak Technical Park, the pending updates to the FIRM Maps (Flood Insurance Rate maps) issued by FEMA for flood plains, and research for future ordinance amendments related to the commercial zoning classifications. New Dover High School Project (C-10-05/S-11-18) Construction activities related to site improvements and the building construction activities continue at the new Dover High School project site. The Planning Staff continues to work with the Capital School District and DelDOT regarding pedestrian safety concerns for the school project. The monthly coordination meeting on the project was held on December 5, 2013. The sidewalk improvement project for the north side of Route 8 is progressing through the design process at DelDOT in preparation for easement acquisitions.

Comprehensive Plan Amendments 2014 December 15th was the filing deadline for requests for Comprehensive Plan Amendments. A series of ad- dendums to the text of the Comprehensive Plan are proposed. The Addendum relates to a number of ongo- ing planning projects taking place during 2014. These projects include the following items: A. Central Do- ver Community Plan with addendum to Chapter 11 – Housing and Community Development Plan; B. Transportation Improvement District for the Route 13 and Bay Road Corridors with addendum to Chapter 9 - Transportation Plan; C. Citywide Parks and Recreation Needs Assessment; and D. Dover Transit Cen- ter Neighborhood Plan. One request was also received for an amendment to the Map 12-1: Land Develop- ment Plan. Planning Staff prepared a submission for PLUS Review of the Comprehensive Plan Amend- ments 2014 (MI-14-01). PLUS Review will occur in late January and the amendments will begin the for- mal review process including public hearings with the Planning Commission and City Council in February and March 2014. Garrison Energy Center (Master Plan S-12-03/ Phase 1 S-12-17) The Planning Staff participates in weekly coordination conference calls with Calpine regarding the Garri- son Energy Center project at 450 Garrison Oak Drive (Lot 7 of the Garrison Oak Technical Park). The Fi- nal/Final Administrative Site Plan approval for the Garrison Energy Center Phase 1 was granted on Sep- tember 6, 2013 subject to conditions of approval. Construction is underway with Foundation Building Permits for the project continuing to be received for review and inspection. Planning Staff reviewed the Building Permit for the Administration Building (#13-1608) on December 20 2013. BOARD AND COMMISSION ACTIVITY  Board of Adjustment The Board of Adjustment met on December 18, 2013. The next regular scheduled meeting of the Board of Adjustment is scheduled for January 15, 2014. The following applications were considered.  V-13-05 Lands of Thomas J. Bugbee and Sherrill L. Brekke – Variance approval to allow the house to be constructed at the 6-foot contour elevation line or greater provided that the finished first floor elevation shall be at or above the base flood elevation based on the requirements of the City of Dover Code, Chapter 50 and the requirements of the International Residential Code. The applicant must provide the Board of Adjustment a copy of the deed showing the setback restrictions of 35 feet.  V-13-14 Lands of John Bashore– Application V-13-14 was tabled until the January 15, 2014 meeting because the applicant failed to appear  V-13-15 Lands of Kathleen Davies – Variance approval to install a pre-built shed with a dimension of 12ft x 14ft and thereby increasing the overall lot coverage limit to exceed 35% and with regard to part 2 of the variance request to extend the driveway for additional parking be denied and to not in- crease the lot coverage to 40%.  V-13-16 Lands of Harrington Properties LLC– Variance approval thereby permitting a reduction in the number of off-street parking spaces from the required 178 to the requested 169.  V-13-17 Lands of Jerrie D. Stanstrom— Moved to amend the previous motion to hold another pub- lic hearing because of the change in additional information that might be forthcoming.  Historic District Commission The Historic District Commission did not meet on December 16, 2013. The next Historic District Com- mission meeting is scheduled for January 16, 2014.

 Planning Commission The Planning Commission met on December 18, 2013 and took the actions summarized listed below. The next Planning Commission meeting is scheduled for January 21, 2014.  US-13-02 Delaware Technical Community College Comprehensive Signage Plan –Approval of US-13 -02 Delaware Technical Community College Comprehensive Signage Plan for a gateway signage system for the Terry Campus and to include all DAC comments.  MI-13-21 Request for Street Abandonment: Budd Street – Recommend approval to City Council of MI -13-21 Request for Street Abandonment: Budd Street and to include all DAC comments. COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM  CDBG FY13 Projects Contracts for FY13 projects have been executed and projects are underway.  Homeownership Assistance Program CDBG funds will be used to provide settlement assistance to assist qualifying families purchase properties in the City of Dover.  MHDC Homeowner Rehabilitation Program CDBG funds will be used to rehabilitate owner occupied homes in the City of Dover found in violation of the City’s housing code. Two (2) homes have been completed. Dover Interfaith Mission to the Homeless CDBG funds will be used for operations cost for the shelter.  MHDC Emergency Home Repair Project CDBG funds will be used to assist very low income homeowners with emergency repairs to eliminate severe housing conditions that constitute health and safety hazards. Two (2) homes have been completed.  NCALL Research CDBG funds were used for foreclosure prevention and pre-purchase homeownership counseling services for ten (10) Dover residents.  Elizabeth W. Murphey School CDBG funds will be used for minor renovations for one of the facilities that services children that are at risk for homelessness. Replacement of the windows has been completed.  Neighborhood Stabilization Program (NSP) The City was awarded $1,426,740 for the acquisition and rehab of foreclosed properties to be sold to qualify- ing families. A total of $2,080,554 including program income has been expended on the acquisition and reno- vations for 11 properties. Nine properties have been sold, one is a lease purchase and one is a rental that serves persons with disabilities. Ten (10) first-time homebuyers have purchased homes through the NSP Settlement Assistance Program. 218 Ann Avenue (sold) 337 N. Governors Avenue (sold) 343 Mimosa Avenue (sold) 254 Green Blade Drive (sold) 907 Woodcrest Avenue (sold) 302 Stone Brook Place (lease purchase) 1430 S. Hancock (group home rental) 11 Westover Drive (sold) 1415 S. Hancock (sold) 110 Thames Drive (sold) 4 Bennington Street (sold)

Dangerous Buildings, Vacant Buildings & Demolitions  126 N. Ann Avenue – The owner is making repairs to the exterior of the property.  209 N. New Street – Owner has been granted an extension until January 15, 2014 to make repairs to the home.  105 S. Queen Street—A residential Renovation Permit has been obtained and a re-inspection to the home shows that work continues to be made as finances provide.  123 Blue Beach Drive—An asbestos survey was completed for the pool pump-house and no asbestos was found. Sunnyfield Contractors have been awarded the contractor for the pool and pump house demoli- tion.  142 Brandywine Drive—Owners have completed all repairs.  200 N. West Street—The owner has applied to the Board of Adjustment for a use variance pertaining to the prohibition of residential uses in the M (Manufacturing Zone) so that he can make renovations to the home.  67 S. Queen Street —Demolished by the City of Dover.  24 N. New Street —Demolished by the City of Dover.  106 Saulsbury Road —The owner of the property demolished the vacant structure.  650 Bay Road, Unit 19—The owners of the property made all repairs and the building is now in code compliance.  101 S. Queen Street —The owner of the property was notified that he had until January 30, 2014 to make repairs to the structure, and/or have it demolished, or the City of Dover would proceed with Demo- lition.  27 N. New Street—Home was condemned as unfit for human occupancy with notice going to the owner to make repairs by January 9, 2014, or the structure will be brought forward to Council as a dangerous building.  Vacant Buildings—During the month of December, 30 additional buildings were registered as vacant, and $6,000.00 in vacant building registration fees were collected. 67 S. Queen Street prior to demoli on

Code Enforcement Activity—DECEMBER Case Type # cases current # cases % staff ini ated % staff ini ated month YTD current month YTD No valid Rental Permit 1 155 100% 96% No valid Building Permit 4 62 50% 90% Tall grass and weeds 1 777 100% 79% Unregistered vehicle 1 59 100% 90% Abandoned vehicle 1 92 100% 86% Annual Housing Inspec on 98 467 96% 89% Property Maintenance – 41 643 61% 65% Exterior Electric Termina on 14 284 86% 96% Dover Code of Ordinances 80 678 89% 80% Zoning 14 144 86% 77% Total Cases 255 3361 Total # of Inspec ons For 301 Month 24 N New Street

Fire Marshal’s Office, Building Inspections & Licensing Summary LIFE SAFETY Inspec ons DEC 13 FYTD 14 DEC 12 FYTD 13 Fire Protec on Inspec ons (New & Exis ng) 100 660 36 171 Fire Code Inspec ons 50 726 164 894 Inspec on Deficiencies 35 430 37 196 Cer ficate of Occupancy 6 85 10 24 Accidental $1000 $148,450 $50.00 $450.00 Incendiary $0 $34,600.00 $100.00 $11,100.00 Undetermined $ $321,000.0 $150.00 $1150.00 PERMITTING AND LICENSING Permits Issued DEC 13 FYTD 14 DEC 12 FYTD 13 Administra ve Permit 1 6 1 14 Building Addi on/Renova on Permits 15 208 36 149 Building Permits 12 88 7 78 Demoli on Permits 3 28 1 23 Fence Permits 2 39 6 45 Fire Preven on Permits 6 54 17 50 Mechanical Permits 31 188 13 170 Plumbing Permits 17 163 30 178 Sign Permits 17 367 21 123 Swimming Pool Permits 0 6 0 10 Business Licenses 36 1288 19 929 Merchant Licenses 7 292 4 247 Contractor Licenses 19 819 39 618 Lodging House Licenses 5 7 30 31 Mobile Homes 5 294 39 200 Public Occupancy 27 58 155 185 Rental Dwelling 303 418 811 908 BUILDING INSPECTIONS Inspec ons DEC 13 FYTD 14 DEC 12 FYTD 13 Building 219 1742 244 1,536 Plumbing/Mechanical 480 2014 456 1,785 Cer ficate of Occupancy 9 68 10 56

Fire Marshal’s Office—At a Glance Number of Fires Requiring FM Response for Number of Complaints – 5 December 2013 Two arrests for the month December. Incendiary fire was started at Wesley College and one person was arrested for 4 Accidental Arson I and a second for Hindering Prosecu on. One person 0 Undetermined pled guilty to the Hindering charge and the other is awai ng trial or a plea on the Arson charge. 3 Incendiary 20 hours of inves ga on me Recreation Division Enrollment Summary December 2012 verses December 2013 800 FY 13 600 FY 14 400 200 0 General Recreation Spo rts Trip s Leagues Category FY13 FY14 General Recrea on 273 318 Sports 59 110 Trips 113 86 Leagues 196 638 Camps Not Offered Not Offered

Revenue Breakdown: December 2012 verses December 2013 General Recreation General Recreation Sports Sports Trips Trips Leagues Leagues Building & Field Rentals Building & Field Rentals Camps Camps General Recreation $1,631 General Recreation $1,441 Sports $660 Sports $1,020 Camps $0 Trips $735 Leagues $6,525 Trips $833 Building & Field Rentals $115 Leagues $3,995 Camps $0 Building & Field Rentals $0

John W. Pitts Recreation Center – December 2013 Total Program Attendance Facility Usage By The Hour 1,000 800 600 400 200 0 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 June 13 July 13 Aug 13 Sept 13 Oct 13 Nov 13 Dec 13 ** Program Attendance figures includes daily participants, parents and spectators in the facility. Facility Usage By The Hour DEC 13 FYTD 14 DEC 12 FYTD 13 Open Gym 396.5 2566.5 414.5 2784.25 Fitness Classes 49.5 294.5 38 252 Leagues 115 268 91 217 Camps 0 555 0 49 Sports Classes 16 95.5 11 90 Meetings & Rentals 43 117.5 22 153.5 Enrichment Classes 23 52 25.5 41.5 Total Facility Usage Hours 643 3949 602 3587.25 Daily Program Attendance** NOV 13 FYTD 14 NOV 12 FYTD 13 Total 8,048 18,453 6,189 17,207 Open Gym 497 2,296 937 4,420 Fitness Classes 216 1,542 199 1,775 Leagues 5,595 9,495 3,920 7,175 Camps 0 1,308 0 254 Sports Classes 143 695 91 707 Meetings & Rentals 1,546 3,010 1,000 2,793 Enrichment Classes 51 108 42 82 Since our opening in late April 2008, we have had 282,625 guests at the John W. Pitts Recreation Center. December Open Gym Registrations and Packages Sold Packages Sold: NOV. MTD YTD FYTD Daily: 55 $ 102 239 $717 Individual Quarterly: 2 $ 30 10 $150 Individual Annual: 0 $0 1 $ 50 Family Quarterly: 1 $ 30 5 $ 120 Family Annual: 0 $ 0_ 0 __ $ 0___ Revenue: $162 $1,037

CITY OF DOVER FINANCE AND PROCUREMENT & INVENTORY DEPARTMENTS DECEMBER 2013 - MONTHLY BUDGET REPORTS LEASE NOTE – THIS REPORT PROVIDES TOP LINE INFORMATION ON THE OPERATING FUNDS. IF YOU WOULD LIKE ADDITIONAL INFORMATION, PLEASE FEEL FREE TO CONTACT THE FINANCE DEPARTMENT.

2 of 11 CITY OF DOVER ACTIVITY REPORTS December 2013 S FINANCE DEPARTMENT ACTIVITY LEVELS FY13 YTD FY14 YTD BANK TRENDS Number of Deposits Made (Hand, ACH & Wire, Lockbox) 2,709 3,167 Total Amount of All Deposits $ 77,893,373 $ 64,661,693 PAYROLL Hours % Amount Hours % Amount Gross wages per registers 435,509 100.0% $ 10,404,304 423,595 100.0% $ 10,039,860 Wages and Hours Worked Regular 358,757 82.4% $ 7,973,311 352,678 83.3% $ 7,649,911 All over time 21,977 5.0% $ 975,243 18,102 4.3% $ 759,890 Other Paid or Unpaid Wages and Hours Vacation 25,124 5.8% $ 652,792 25,118 5.9% $ 664,547 Sick 10,050 2.3% $ 253,659 9,091 2.1% $ 235,559 Terminal Leave - Retiree Vacation/Sick Payout 10,581 2.4% $ 298,507 8,317 2.0% $ 252,386 Comp Time 4,652 1.1% $ 131,455 3,859 0.9% $ 109,686 Personal 506 0.1% $ 13,721 539 0.1% $ 15,017 Leave Without Pay 2,954 0.7% $ - 2,421 0.6% $ - Other (description below) 909 0.2% $ 105,615 3,526 0.8% $ 352,864 Other includes: pay adjustments, military differential pay, committee meetings, worker compensation tracking/adjustments, etc. Other Activity Number of Pay Periods 13 13 Number of Payroll Checks & Direct Deposits Issued 4,731 4,669 Number of Pension Checks Issued 1,477 1,546 Total Pension Benefits Paid - Defined Benefit Plan $ 8,538,846 $ 9,059,818 ACCOUNTS PAYABLE Number of Check Vouchers 3,144 2,452 Number of EFT Vouchers 1,035 906 Vouchers Dollar Amount Disbursed $ 44,432,249 $ 31,080,108 PROCUREMENT & INVENTORY ACTIVITY LEVELS Contingency & Warehouse Stock Items on Hand with No Usage $2,700,000 2400 $630 $2,600,000 2200 $2,500,000 $530 Total Dollar Value Total Line Items 2000 $2,400,000 $430 1800 Thousands $2,300,000 1600 $330 $2,200,000 $2,100,000 1400 $230 $2,000,000 1200 $130 Total Dollar Value Total Line Items $30 Dec‐12 Jan‐13 Feb‐13 Mar‐13 Apr‐13 May‐13 Jun‐13 Jul‐13 Aug‐13 Sep‐13 Oct‐13 Nov‐13 Dec‐13 Value: $2,575,217 Line Items: 1,455 Ele ctric Water General Electric: $603,227 Water: $56,799 General: $35,415 S toc k P urc ha se s by Fund $350,000 $300,000 $250,000 Fuel Use $200,000 Unleaded: 9,904.5 gallons $ 15 0 , 0 0 0 Diesel: 6,541.5 gallons $ 10 0 , 0 0 0 Total Cost: $ 47,578 $50,000 $0 De c Ja n Fe b Ma r Apr Ma y Jun Jul Aug S e p O c t Nov De c 12 13 13 13 13 13 13 13 13 13 13 13 13 Ele c tric Wa te r G e ne ra l Electric $ 55,416 Water $ 4,524 General $ 9,989

3 of 11 City of Dover Finance Department Monthly Report – December 2013 General Fund Summary Revised 50% Budget Budget YTD Balance Budget Beginning Balance (unaudited) $ 3,455,200 $ 3,455,200 $ - $ 3,455,200 0.0% Revenues Court of Chancery Fees 863,200 863,200 400,800 462,400 46.4% Fines & Police Revenues 1,316,000 1,316,000 544,878 771,122 41.4% Franchise Fees 606,200 606,200 157,744 448,456 26.0% Grants 623,500 623,500 71,000 552,500 11.4% Intrafund Services 4,454,300 4,454,300 2,017,413 2,436,887 45.3% Library & Recreation Revenues 599,600 599,600 334,180 265,420 55.7% Licenses & Permits 2,627,500 2,627,500 1,995,757 631,743 76.0% Property Taxes (Includes BID Revenue) (1) 11,169,500 11,169,500 11,056,488 113,012 99.0% Miscellaneous Revenues 138,300 138,300 45,565 92,735 32.9% Sanitation Revenues 2,676,500 2,676,500 1,299,947 1,376,553 48.6% Garrison Farm Rent Revenue 118,500 118,500 28,892 89,608 24.4% Transfers-In from Special Funds & Utilities Municipal Street Aid Fund 527,400 527,400 - 527,400 0.0% Civil Traffic Penalties 600,000 600,000 114,215 485,785 19.0% Transfer Taxes 1,315,500 1,315,500 537,351 778,149 40.8% Verizon, Contingency and CI Reserves 32,000 32,000 - 32,000 0.0% Police Grants 110,000 110,000 32,481 77,519 29.5% Water/Wastewater Fund 500,000 500,000 375,000 125,000 75.0% Electric Fund 8,000,000 8,000,000 4,000,000 4,000,000 50.0% Total Revenues 36,278,000 36,278,000 23,011,711 13,266,289 63.4% Total Beginning Balance & Revenues $ 39,733,200 $ 39,733,200 $ 23,011,711 $ 16,721,489 57.9% Expenditures City Clerk & Council $ 442,200 $ 445,600 $ 214,148 $ 231,452 48.1% Mayor, City Manager & Human Resources 874,900 883,200 462,984 420,216 52.4% Police & Police Extra Duty 14,331,800 14,466,500 6,912,273 7,554,227 47.8% Public Services 4,131,800 4,141,000 1,878,578 2,262,422 45.4% Procurement & Inventory, Facilities Mgmt., Vehicle Maint. 1,870,900 1,872,500 816,917 1,055,583 43.6% Planning & Inspections 2,045,600 2,052,900 1,049,351 1,003,549 51.1% Finance, Info Tech & Customer Services 2,676,400 2,694,900 1,296,761 1,398,139 48.1% Library & Recreation 2,038,600 2,047,500 960,551 1,086,949 46.9% Fire Department 692,100 692,100 296,803 395,297 42.9% Assessor 198,300 198,300 101,132 97,168 51.0% Contribution to DDP 162,400 162,400 121,800 40,600 75.0% Miscellaneous Grant Expense 25,000 25,000 - 25,000 0.0% Other Employment Expenses 400,000 208,100 - 208,100 0.0% Insurance 658,900 658,900 152,859 506,041 23.2% OPEB - Retiree’s Health Care Contribution 1,636,500 1,636,500 818,250 818,250 50.0% Police Pension Trust Contribution - State Grant 500,000 500,000 70,000 430,000 14.0% Appropriation to Employee Pension Fund - Unfunded Liability 1,466,500 1,466,500 1,176,725 289,775 80.2% Street Lights 836,000 836,000 388,579 447,421 46.5% Debt Service 557,300 557,300 538,486 18,814 96.6% Provision for Uncollectible 10,000 10,000 10,000 - 100.0% Transfers Out Capital Projects Fund 1,278,300 1,278,300 958,725 319,575 75.0% Total Expenditures 36,833,500 36,833,500 18,224,922 18,608,578 49.5% Budget Balance - Working Capital 2,899,700 2,899,700 - 2,899,700 0.0% Total Budget Balance & Expenditures $ 39,733,200 $ 39,733,200 $ 18,224,922 $ 21,508,278 45.9% Reserve Balances Contingency $ 723,600 $ 723,600 $ 736,632 (1) Property Taxes are the taxes billed and not cash received. The outstanding receivable balance as of 12/31/13 is $427,953 as compared to $491,189 in December 2012.

4 of 11 City of Dover Finance Department Monthly Report – December 2013 Water/Wastewater Fund Summary Revised 50% Budget Budget YTD Balance Budget Beginning Balance - Water (unaudited) $ 770,800 $ 770,800 $ - $ 770,800 0.0% Beginning Balance - Wastewater (unaudited) $ 412,600 $ 412,600 $ - $ 412,600 0.0% Beginning Balance - Kent County Treatment (unaudited) $ 141,600 $ 141,600 $ - $ 141,600 0.0% 1,325,000 1,325,000 - 1,325,000 0.0% Revenues Water Fees 4,730,700 4,730,700 2,321,699 2,409,001 49.1% Wastewater Fees 3,642,700 3,642,700 1,825,352 1,817,348 50.1% Kent County Treatment Fees 2,980,300 2,980,300 1,503,077 1,477,223 50.4% Ground Water Inflow Adjustment 1,324,600 1,324,600 674,723 649,877 50.9% Water Tank Leases 333,800 333,800 146,194 187,606 43.8% Miscellaneous Service Fee 105,100 82,000 34,238 47,762 41.8% Impact Fees - Water 357,000 357,000 90,475 266,525 25.3% Impact Fees - Wastewater 323,000 323,000 82,022 240,978 25.4% Total Revenues 13,797,200 13,797,200 6,677,780 7,119,420 48.4% Total Beginning Balance & Revenues $ 15,122,200 $ 15,122,200 $ 6,677,780 $ 8,444,420 44.2% Expenses Water/Wastewater Operating Divisions Engineering & Inspection $ 664,400 $ 667,900 $ 157,669 $ 510,231 23.6% Water 433,900 436,900 219,798 217,102 50.3% Water Treatment Plant 1,501,800 1,507,800 661,362 846,438 43.9% Wastewater 945,100 946,000 380,679 565,321 40.2% Construction 351,400 352,200 125,794 226,406 35.7% Kent County Treatment 3,524,800 3,524,800 1,589,289 1,935,511 45.1% Intrafund Service Fees 1,233,400 1,233,400 592,039 641,361 48.0% Pension Unfunded Liability 339,400 339,400 254,550 84,850 75.0% OPEB - Retiree's Health Care Contributions 200,000 200,000 150,000 50,000 75.0% Debt Service 1,019,500 1,019,500 555,630 463,870 54.5% Other Employment Expenses 25,000 10,800 - 10,800 0.0% Transfers Out - General Fund 500,000 500,000 375,000 125,000 75.0% Water I & E Fund 1,200,000 1,200,000 600,000 600,000 50.0% Wastewater I & E Fund 1,330,000 1,330,000 665,000 665,000 50.0% Total Expenses 13,268,700 13,268,700 6,326,810 6,941,890 47.7% Budget Balances Budget Balance - Working Capital - Water 1,056,400 1,050,450 - 1,050,450 0.0% Budget Balance - Working Capital - WW 797,100 803,050 - 803,050 0.0% Total Budget Balances 1,853,500 1,853,500 - 1,853,500 0.0% Total Budget Balances & Expenses $ 15,122,200 $ 15,122,200 $ 6,326,810 $ 8,795,390 41.8% Reserve Balances Contingency-Water $ 105,600 $ 105,600 $ 104,485 Contingency-Wastewater $ 191,500 $ 191,500 $ 188,936 Impact Fee Reserve - Sewer NO BUDGET NO BUDGET $ 3,767,731 Impact Fee Reserve - Water NO BUDGET NO BUDGET $ 199,693 Bond Coverage Ratio (Covenant 1.20) 3.99 3.99 4.26

5 of 11 City of Dover Finance Department Monthly Report – December 2013 Electric Revenue Fund Summary Revised 50% Budget Budget YTD Balance Budget Beginning Balance (unaudited) $ 7,152,400 $ 7,152,400 $ - $ 7,152,400 0.0% Revenues Sales to Customers 76,286,700 76,286,700 40,064,005 36,222,695 52.5% Utility Tax 1,492,200 1,492,200 661,364 830,836 44.3% Weyandt Hall Rents 251,000 251,000 69,327 181,673 27.6% Miscellaneous Revenues 737,800 737,800 330,014 407,786 44.7% Interest Earned 119,400 119,400 (318) 119,718 -0.3% Transfer from Rate Stabilization 4,000,000 4,000,000 3,000,000 1,000,000 75.0% Intrafund Service Receipts Water/Wastewater 98,500 98,500 50,506 47,994 51.3% Total Revenues 82,985,600 82,985,600 44,174,898 38,810,702 53.2% Total Beginning Balance & Revenues $ 90,138,000 $ 90,138,000 $ 44,174,898 $ 45,963,102 49.0% Expenses Power Supply & Generation Hedged Energy $ 23,832,000 $ 23,832,000 $ 16,144,150 $ 7,687,850 67.7% Power Supply Management 996,000 996,000 498,000 498,000 50.0% Capacity Charges 15,787,200 15,787,200 8,093,027 7,694,173 51.3% Dover Sun Park Energy 1,565,800 1,565,800 788,934 776,866 50.4% Solar Renewal Energy Credits 300,000 300,000 149,722 150,278 49.9% PJM Charges - Energy 12,812,900 12,812,900 4,259,269 8,553,631 33.2% PJM Charges - Transmission & Fees 4,740,000 4,740,000 3,744,893 995,107 79.0% Total Power Supply 60,033,900 60,033,900 33,677,995 26,355,905 56.1% Plant Operations 6,015,800 6,015,800 2,463,494 3,552,306 41.0% Generation Fuels - - 919,951 (919,951) 0.0% Capacity Credits (15,079,800) (15,079,800) (7,889,000) (7,190,800) 52.3% PJM Spot Market Energy (230,500) (230,500) (151,172) (79,328) 65.6% PJM Credits (397,000) (397,000) (1,916,940) 1,519,940 482.9% Total Generation (9,691,500) (9,691,500) (6,573,667) (3,117,833) 67.8% Total Power Supply & Plant 50,342,400 50,342,400 27,104,328 23,238,072 53.8% Electric Operating Divisions: Transmission/Distribution 3,302,500 3,312,200 1,411,569 1,900,631 42.6% Electrical Engineering 1,192,200 1,194,500 480,888 713,612 40.3% Administration 597,000 597,800 173,967 423,833 29.1% Meter Reading 220,300 221,900 112,914 108,986 50.9% Systems Operations 543,600 553,500 281,060 272,440 50.8% Intrafund Services 3,319,400 3,319,400 1,475,880 1,843,520 44.5% Utility Tax 1,492,200 1,492,200 661,364 830,836 44.3% OPEB - Retirees Health Care Contribution 513,300 513,300 384,975 128,325 75.0% Pension Trust Contribution - Unfunded liability 1,314,200 1,314,200 985,650 328,550 75.0% Interest on Deposits 27,000 27,000 11,810 15,190 43.7% Green Energy Payment to DEMEC 135,800 135,800 66,935 68,865 49.3% Accounts Receivable Write-Offs 200,000 200,000 200,000 - 100.0% Other Employee Expenses 150,000 125,700 - 125,700 0.0% Contractual Services RFP's 100,000 100,000 100 99,900 0.1% Debt Service 3,301,900 3,301,900 1,702,768 1,599,132 51.6% Transfers Out: General Fund 8,000,000 8,000,000 4,000,000 4,000,000 50.0% Electric Improvement & Extension Fund 5,448,600 5,448,600 2,724,300 2,724,300 50.0% Total Expenses 81,176,100 81,176,100 42,510,283 38,665,817 52.4% Budget Balance - Working Capital 8,961,900 8,961,900 - 8,961,900 0.0% Total Budget Balance & Expenses $ 90,138,000 $ 90,138,000 $ 42,510,283 $ 47,627,717 47.2% Reserve Balances Contingency Reserve $ 826,500 $ 826,500 $ 817,173 Insurance Reserve $ 739,000 $ 739,000 $ 735,686 Rate Stabilization Reserve $ 13,644,000 $ 13,644,000 $ 14,439,271 Bond Coverage Ratio (Covenant 1.25) 1.97 3.34 1.88 Megawatt Hours Sold & Purchased Sales to Customers MWh (excluding Street Light MWh) 712,675 712,675 372,627 Sales per MWh $ 107.04 $ 107.04 $ 107.52 Purchased/Generated MWh 725,818 725,818 394,111 All In MWh Supply & Generation $ 69.36 $ 69.36 $ 68.77

6 of 11 City of Dover Finance Department Monthly Report – December 2013 General Capital Project Fund Summary Revised 50% Budget Budget YTD Balance Budget Beginning Balance - Projects (unaudited) $ 241,200 $ 2,801,800 $ - $ 2,801,800 0.0% Beginning Balance - Library (unaudited) $ (74,700) $ 256,500 $ - $ 256,500 0.0% Revenues State Grant - Other 15,000 15,000 - 15,000 0.0% Interest Earnings - - 8,946 (8,946) 0.0% Income from Sale of Assets - - 14,288 (14,288) 0.0% Transfer from Community Transportation Fund - 60,500 - 60,500 0.0% Transfer from General Fund for Projects 1,278,300 1,278,300 958,725 319,575 75.0% Contractor Contributions - 264,800 - 264,800 0.0% Transfer from Parkland Reserve 95,000 80,000 - 80,000 0.0% MSA Capital Contribution - 251,200 - 251,200 0.0% Subtotal Revenues 1,388,300 1,949,800 981,959 967,841 State Grant - Library - 150,000 108,044 41,956 72.0% Library Capital Pledges - 5,000 7,500 (2,500) 150.0% Subtotal Library Project Receipts - 155,000 115,544 39,456 74.5% Total Revenues 1,388,300 2,104,800 1,097,503 1,007,297 52.1% Total Beginning Balance & Revenue $ 1,554,800 $ 5,163,100 $ 1,097,503 $ 4,065,597 21.3% Expenditures Fire $ 238,500 $ 238,500 $ 238,515 $ (15) 100.0% Grounds Maintenance 50,100 50,100 30,249 19,851 60.4% Library - 411,500 73,428 338,072 17.8% Recreation 95,000 95,000 - 95,000 0.0% Code Enforcement 30,000 30,000 - 30,000 0.0% Police 257,300 363,300 198,774 164,526 54.7% Streets 251,500 3,395,700 475,462 2,920,238 14.0% Sanitation 402,100 402,100 - 402,100 0.0% Information Technology 7,000 7,000 - 7,000 0.0% Facilities Management 17,800 17,800 - 17,800 0.0% Procurement & Inventory 55,000 55,000 - 55,000 0.0% Total Expenditures 1,404,300 5,066,000 1,016,428 4,049,572 20.1% Budget Balance - Projects 150,500 97,100 - 97,100 0.0% Total Budget Balance & Expenditures $ 1,554,800 $ 5,163,100 $ 1,016,428 $ 4,146,672 19.7% Reserve Balances Capital Asset Replacement Reserve $ 512,000 $ 512,000 $ 509,137 Parkland/Recreation $ 110,000 $ 110,000 $ 203,646

7 of 11 City of Dover Finance Department Monthly Report – December 2013 Water/Wastewater Improvement & Extension Fund Summary Revised 50% Budget Budget YTD Balance Budget Beginning Balance - Water (unaudited) $ 1,620,000 $ 4,473,800 $ - $ 4,473,800 0.0% Beginning Balance - Wastewater (unaudited) $ 660,900 $ 2,807,000 $ - $ 2,807,000 0.0% Revenues Bond Proceeds - Water - 3,000,000 3,000,000 - 100.0% Bond Proceeds - Wastewater - 1,067,900 1,005,960 61,940 94.2% State Loan-Wastewater 2011 - 62,000 - 62,000 0.0% Arbitrage Rebate - IRS Refund - 66,000 62,000 4,000 93.9% Income from Sale of Assets - - 4,343 (4,343) 0.0% Interest Earned 25,000 25,000 22,905 2,095 91.6% Transfer from Operating Fund for Water 1,200,000 1,233,200 600,000 633,200 48.7% Transfer from Operating Fund for Wastewater 1,330,000 1,330,000 665,000 665,000 50.0% Transfer from Impact Fee Reserve - Water 390,000 390,000 - 390,000 0.0% Transfer from Impact Fee Reserve - Wastewater - 1,000,000 - 1,000,000 0.0% Total Revenues 2,945,000 8,174,100 5,360,208 2,813,892 65.6% Total Beginning Balance & Revenues $ 5,225,900 $ 15,454,900 $ 5,360,208 $ 10,094,692 34.7% Expenses Water $ 1,476,800 $ 7,499,700 $ 539,305 $ 6,960,395 7.2% Wastewater 1,251,000 5,252,400 214,183 5,038,217 4.1% Water Construction 90,000 90,000 - 90,000 0.0% Total Expenses 2,817,800 12,842,100 753,488 12,088,612 5.9% Budget Balance - Working Capital - Water 1,655,700 1,552,800 - 1,552,800 0.0% Budget Balance - Working Capital - Wastewater 752,400 1,060,000 - 1,060,000 0.0% Total Budget Balances 2,408,100 2,612,800 - 2,612,800 0.0% Total Budget Balances & Expenses $ 5,225,900 $ 15,454,900 $ 753,488 $ 14,701,412 4.9% Reserve Balances Capital Asset Replacement - Water $ 513,000 $ 513,000 $ 507,264 Capital Asset Replacement - Wastewater $ 512,300 $ 512,300 $ 506,104

8 of 11 City of Dover Finance Department Monthly Report – December 2013 Electric Improvement & Extension Fund Summary Revised 50% Budget Budget YTD Balance Budget Beginning Balance (unaudited) $ 3,091,000 $ 3,980,200 $ - $ 3,980,200 0.0% Revenues Interest Earnings 25,200 25,200 7,520 17,680 29.8% Transfer from Electric Revenue Fund 5,448,600 4,918,600 2,724,300 2,194,300 55.4% General Service Billing 440,000 440,000 107,912 332,088 24.5% Total Revenues 5,913,800 5,383,800 2,854,161 2,529,639 53.0% Total Beginning Balance & Revenues $ 9,004,800 $ 9,364,000 $ 2,854,161 $ 6,509,839 30.5% Expenses Electric Generation $ 2,117,800 $ 2,130,000 $ 186,164 $ 1,943,836 8.7% Transmission/Distribution 1,100,000 1,144,600 119,134 1,025,466 10.4% Electrical Engineering 2,405,800 2,627,500 669,307 1,958,193 25.5% Total Expenses 5,623,600 5,902,100 974,605 4,927,495 16.5% Budget Balance - Working Capital 3,381,200 3,461,900 - 3,461,900 0.0% Total Budget Balance & Expenses $ 9,004,800 $ 9,364,000 $ 974,605 $ 8,389,395 10.4% Reserve Balances Depreciation Reserve $ 9,977,100 $ 9,977,100 $ 9,891,249 Future Capacity Reserve $ 10,131,400 $ 10,131,400 $ 10,040,271 City of Dover Finance Department Monthly Report – December 2013 Community Transportation Improvement Fund Revised 50% Budget Budget YTD Balance Budget Beginning Balance (unaudited) $ - $ - $ - $ - 0.0% Revenues Grants Revenue 500,000 500,000 (2) 500,002 0.0% Interest Earned 500 500 229 271 45.8% Total Revenues 500,500 500,500 227 500,273 0.0% Total Beginning Balance & Revenues $ 500,500 $ 500,500 $ 227 $ 500,273 0.0% Expenses Program Expenses - Del Dot $ 500,000 $ 500,000 $ 359,306 $ 140,694 71.9% Total Expenses 500,000 500,000 359,306 140,694 71.9% Budget Balance - Working Capital 500 500 - 500 0.0% Total Budget Balances & Expenses $ 500,500 $ 500,500 $ 359,306 $ 141,194 71.8%

9 of 11 City of Dover Finance Department Monthly Report – December 2013 Police Grant Funds Revised 50% Budget Budget YTD Balance Budget Beginning Balance (unaudited) $ 100 $ 100 $ - $ 100 0.0% Revenues Grants Received 413,000 413,000 121,193 291,807 29.3% Interest Earned - - 453 (453) 0.0% Total Revenues 413,000 413,000 121,646 291,354 29.5% Total Beginning Balance & Revenues $ 413,100 $ 413,100 $ 121,646 $ 291,454 29.4% Expenses Program Expenses/Supplies $ 191,000 $ 191,000 $ 43,677 $ 147,323 22.9% Computer Hardware 60,000 60,000 17,875 42,125 29.8% Telephone/Fax 15,000 15,000 7,307 7,693 48.7% Training/Conference/Food/Travel 36,000 36,000 - 36,000 0.0% Consulting/Audit Fees 1,000 1,000 - 1,000 0.0% Contractual services - - 3,272 (3,272) 0.0% Operating Transfers - Out 110,000 110,000 32,481 77,519 29.5% Total Expenses 413,000 413,000 104,612 308,388 25.3% Budget Balance - Working Capital 100 100 - 100 0.0% Total Budget Balances & Expenses $ 413,100 $ 413,100 $ 104,612 $ 308,488 25.3%

10 of 11 City of Dover Finance Department Monthly Report – December 2013 Library Grant Fund Revised 50% Budget Budget YTD Balance Budget Beginning Balance (unaudited) $ - $ - $ - $ - 0.0% Revenues Grants Received 270,100 270,100 139,184 130,916 51.5% Total Revenues 270,100 270,100 139,184 130,916 51.5% Total Beginning Balance & Revenues $ 270,100 $ 270,100 $ 139,184 $ 130,916 51.5% Expenses Program Expenses/Supplies-State Grants $ 28,000 $ 28,000 $ 7,249 $ 20,751 25.9% Program Expenses/Supplies-Federal Grants - - 2,500 (2,500) 0.0% Office Supplies 24,000 24,000 10,915 13,085 45.5% Printing/Duplicating 8,900 8,900 2,740 6,160 30.8% Postage 100 100 33 67 33.0% Books 124,900 124,900 18,401 106,499 14.7% Furniture 4,700 4,700 3,590 1,110 76.4% Audio Visual Supplies 74,000 74,000 25,734 48,266 34.8% Training/Conference/Food/Travel 3,500 3,500 210 3,290 6.0% Office Equipment/Repairs & Maintenance 2,000 2,000 1,811 189 90.6% Total Expenses 270,100 270,100 73,183 196,917 27.1% Budget Balance - Working Capital - - - - 0.0% Total Budget Balances & Expenses $ 270,100 $ 270,100 $ 73,183 $ 196,917 27.1% City of Dover Finance Department Monthly Report – December 2013 CJC Grants/Aid Revised 50% Budget Budget YTD Balance Budget Beginning Balance (unaudited) $ - $ - $ - $ - 0.0% Revenues Grants Received 31,800 31,800 5,540 26,260 17.4% Total Revenues 31,800 31,800 5,540 26,260 17.4% Total Beginning Balance & Revenues $ 31,800 $ 31,800 $ 5,540 $ 26,260 17.4% Expenses Contractual Services $ 31,800 $ 31,800 $ 5,540 $ 26,260 17.4% Budget Balance - Working Capital - - - - 0.0% Total Budget Balances & Expenses $ 31,800 $ 31,800 $ 5,540 $ 26,260 17.4%

11 of 11 City of Dover Finance Department Monthly Report – December 2013 CDBG Fund Revised 50% Budget Budget YTD Balance Budget Beginning Balance (unaudited) $ - $ - $ - $ - 0.0% Revenues Grants Received 244,800 244,800 13,656 231,144 5.6% Interest Earnings - - 22 (22) 0.0% Total Revenues 244,800 244,800 13,678 231,122 5.6% Total Beginning Balance & Revenues $ 244,800 $ 244,800 $ 13,678 $ 231,122 5.6% Expenses Current Year Closing Cost/Down Payment Program $ 40,000 $ 40,000 $ - $ 40,000 0.0% Current year Dover Interfaith Ministry 27,500 27,500 7,273 20,227 26.4% Current Year MHDC Emergency Home Repair 40,000 40,000 - 40,000 0.0% Current Year Elizabeth W Murphy School 39,700 39,700 25,716 13,984 64.8% Current Year NCALL Research Inc. 8,900 8,900 - 8,900 0.0% Current Year Milford Housing H/O Rehabilitation 39,700 39,700 - 39,700 0.0% Current Year Salaries 49,000 49,000 5,929 43,071 12.1% NSP Expense - - 68,880 (68,880) 0.0% Total Expenses 244,800 244,800 107,798 137,002 44.0% Budget Balance - Working Capital - - - - 0.0% Total Budget Balances & Expenses $ 244,800 $ 244,800 $ 107,798 $ 137,002 44.0% City of Dover Finance Department Monthly Report – December 2013 After School Program/Substance Abuse Prevention Fund Revised 50% Budget Budget YTD Balance Budget Beginning Balance (unaudited) $ - $ - $ - $ - 0.0% Revenues Grants Received 55,630 55,630 22,837 32,793 41.1% Recreation Revenue 33,000 33,000 8,298 24,702 25.1% Total Revenues 88,630 88,630 31,135 57,495 35.1% Total Beginning Balance & Revenues $ 88,630 $ 88,630 $ 31,135 $ 57,495 35.1% Expenses Temporary Help/Benefits $ 33,000 $ 33,000 $ 13,896 $ 19,104 42.1% Program Expenses/Supplies 55,630 55,630 14,457 41,173 26.0% Total Expenses 88,630 88,630 28,353 60,277 32.0% Budget Balance - Working Capital - - - - 0.0% Total Budget Balances & Expenses $ 88,630 $ 88,630 $ 28,353 $ 60,277 32.0%

Monthly Report December 2013 Economic Development Office

2013_12 Economic Development  Calpine Weekly Conference Calls  Meeting with Barron Marketing to discuss marketing program for Garrison Tract  Meeting with owners of The Greene Turtle to discuss temporary certificate of occupancy  Confirmed visit with Mayor Carey and Congressman Carney at Proctor & Gamble  Provided Costar additional information regarding Garrison Tract  Calculated impact fee waiver for The Greene Turtle  Attended Parking Committee Meeting  Discussed changes in Uzin Utz agreement with City Manager and Nick Rodriguez  Provided written changes in Uzin Utz agreement to our attorney  Discussed necessary changes to Chesapeake Utilities agreement with staff at Chesapeake  Discussed constraints of agricultural lease with Public Works Director  Met with Compliance Environmental to discuss future DNREC monitoring at Chesapeake Supply  Attended Kent County is Open for Business  Attended Pre-Bid Meeting with city staff and potential contractors for infrastructure improvements at Garrison Oak Technology Park  Met with Dr. Casson from Delaware State University to discuss Comprehensive Economic Development Strategy with regard to US Economic Development Agency (USEDA)  Attended Chamber of Commerce Board of Directors meeting  Met with Bernice Whalley from DEDO to discuss next steps for revitalizing Comprehensive Economic Development Strategy (CEDS)  Revised easement agreement between Calpine and the City for Lots 6 & 7 at Garrison Oak Technical Park  Provided Chesapeake Utilities with projected annual gas consumption of Uzin Utz  Attended LEADS meeting at R&R Commercial Realty  Budget meeting with Mayor and Economic Development staff  Conference call with Kirk Betts and City Manager to discuss the easements and the compensation amount for the easements with Calpine  Provided information to Congressman Carney’s office including the Agenda and background business information for Proctor & Gamble visit  Requested from Kirk Betts “Ancillary Rights” clarifications in the ground lease between City of Dover and Calpine  Discussed the potential with Calpine for a “Meet & Greet” with representatives from Calpine and the City regarding power purchase agreement  Attended soft opening of The Greene Turtle  Attended site visit at Proctor & Gamble with Mayor Carey, Congressman Carney and his staff  Contacted and discussed with Office of Management and Budget potential payment from the Westside Redevelopment Grant for demolition expenses at former Chesapeake Supply site  Attended Minority Business Advisory Council Meeting hosted by the Delmarva Black Chamber of Commerce  Attended the Annual Meeting of the Delaware Health Facilities Authority  Attended the DDP Economic Development Committee meeting  Provided the Greater Kent Committee an update for their Economic Development Roundtable  Attended Kent County Tourism Board of Directors Meeting  Discussed with the attorney for Uzin Utz wording to protect the City of Dover regarding transfer of property to Uzin Utz

Measures:  1 Maintain an unemployment rate for the City of Dover that is lower than national and state averages 2011-2012 Actual 2012-2013 Actual 2013 - 2014 Projected Results <10% unemployment rate in < 10% unemployment rate in <10% unemployment rate in June 2012 June 2013 June 2014 8.2% - US Rate 7.6% - US Rate 6.7 % - US Rate 6.8 % - DE Rate 7.3% - DE Rate 6.2 % - DE Rate 8.6% - City of Dover Rate 9.8% - City of Dover Rate 7.1% - City of Dover Rate June 2012 – Actual June 2013 Actual December 2013 Actual  2 Monitor number of contacts with small businesses and with out-of-town companies interested in locating in Dover 2011-2012 Actual 2012-2013 Actual 2013 - 2014 Projected Results ≥20 contacts with potential >20 contacts with potential >20 contacts with potential small businesses; small businesses; small businesses; 10 contacts YTD 18 Contacts YTD 8 Contacts YTD ≥11 contacts with out-of-town >11 contacts with out-of-town >11 contacts with out-of-town companies interested in companies interested in companies interested in locating in Dover locating in Dover locating in Dover 9 Contacts YTD 7 Contacts YTD 8 Contacts YTD 2013_12 Economic Development (Perez)  Provided technical assistance to eight (8) prospective small business individuals on overall business development within the City of Dover and the Downtown Dover Business District  Provided technical assistance to four (4) prospective small business individuals on locating available space within the City of Dover and Downtown Business District to lease  Provided technical assistance to one (1) pre-approved small business owner (applicant) in preparing, completing and submitting small business loan application for processing  Disseminated via email, DDP website and Facebook Small Business Development workshops provided by DE Office of Supplier Diversity - Vendor Day Workshop held on December 11th  Disseminated via email, DDP website and Facebook information to our network partners about special events for the Business Community in Dover  Represented the ED Office at the Kent County Open for Business Forum on December 5th  Represented the ED Office at the Delaware Main Street Idea Exchange Quarterly Managers Meeting on December 16th  Represented the ED Office at the Delaware/Maryland Black Chamber of Commerce Minority Business Advisory Meeting on December 17th 2013_12 Downtown Dover Partnership (Perez)  Coordinated/implemented all the necessary logistics for a series of Special Events occurred during this reporting period which included;

 Home for the Holidays Event  Winter Wonderland Project  Capital Holiday Celebration  Shop Small Business Saturday  Home for the Holidays Parade  First Friday in December  Downtown Annual Coat Drive Program  Downtown Annual Coupon Discount Program  Worked with the DDP Executive Director to complete Partnership’s 2013 Annual Report  Supported the DDP Executive Director on the development of program’s new Website Final Phase.  Worked with the DDP Executive Director and the Marketing Committee on the coordination of Holiday Events.  Partnered with the DDP Executive Director and DEDO to provide Technical Assistance on obtaining permits and licenses to the selected POP-UP Project candidate at 138 W. Loockerman Street.  Assisted Design Committee with Logistics of the2013 Community Art Project Reception/Auction  Continued working with the Design Committee on collecting needed materials for the creation of the Façade Report-Final Phase.  Coordinated a series of Photo-Ops and Media releases regarding all the special events during this report period  Coordinated recruitment and supervision of volunteers necessary to assist the office with facilitating all the special events during this reporting period  Assisted the DDP Executive Director with disseminating information regarding the Holiday trash collection schedule and free parking for December 2013 and January 2014  Provided forty-three (43) hours of Technical Assistance regarding promotions and marketing strategies to fifty-nine downtown merchants  Facilitated development of MOU between the DDP and Celtic Bank (US SBA Bank Provider) as a resource partner

Dover Fire Department FIRE REPORT December 2013

Date Range: From 12/1/2013 to 12/31/2013 Incident Type Report (Summary) Dover Fire Department Count Pct of Total Est Total Est Incident Type Incidents Loss Loss 1 Fire 113 Cooking fire, confined to container 6 6.25% $0 0.00% 116 Fuel burner/boiler malfunction, fire confined 1 1.04% $0 0.00% 150 Outside rubbish fire, other 1 1.04% $0 0.00% 154 Dumpster or other outside trash receptacle fire 3 3.13% $0 0.00% Totals 11 11.46% $0 0.00% 2 Overpressure Rupture, Explosion, Overheat(no fire) Totals 0 0.00% $0 0.00% 3 Rescue & Emergency Medical Service Incident 300 Rescue, EMS incident, other 1 1.04% $0 0.00% 311 Medical assist, assist EMS crew 1 1.04% $0 0.00% 322 Motor vehicle accident with injuries 3 3.13% $0 0.00% 324 Motor vehicle accident with no injuries. 1 1.04% $0 0.00% 350 Extrication, rescue, other 1 1.04% $0 0.00% 352 Extrication of victim(s) from vehicle 3 3.13% $0 0.00% Totals 10 10.42% $0 0.00% 4 Hazardous Condition (No Fire) 400 Hazardous condition, other 3 3.13% $0 0.00% 411 Gasoline or other flammable liquid spill 1 1.04% $0 0.00% 412 Gas leak (natural gas or LPG) 6 6.25% $0 0.00% 440 Electrical wiring/equipment problem, other 3 3.13% $0 0.00% 442 Overheated motor 2 2.08% $0 0.00% Totals 15 15.63% $0 0.00% 5 Service Call 500 Service Call, other 1 1.04% $0 0.00% 550 Public service assistance, other 1 1.04% $0 0.00% 553 Public service 1 1.04% $0 0.00% 571 Cover assignment, standby, moveup 3 3.13% $0 0.00% Totals 6 6.25% $0 0.00% 6 Good Intent Call 600 Good intent call, other 16 16.67% $0 0.00% 611 Dispatched & canceled en route 3 3.13% $0 0.00% 651 Smoke scare, odor of smoke 3 3.13% $0 0.00% 652 Steam, vapor, fog or dust thought to be smoke 1 1.04% $0 0.00% 671 HazMat release investigation w/no HazMat 1 1.04% $0 0.00% Totals 24 25.00% $0 0.00% 7 False Alarm & False Call 700 False alarm or false call, other 4 4.17% $0 0.00% 710 Malicious, mischievous false call, other 1 1.04% $0 0.00% 730 System malfunction, other 6 6.25% $0 0.00% 733 Smoke detector activation due to malfunction 1 1.04% $0 0.00% 735 Alarm system sounded due to malfunction 2 2.08% $0 0.00% 736 CO detector activation due to malfunction 1 1.04% $0 0.00% 740 Unintentional transmission of alarm, other 2 2.08% $0 0.00% 741 Sprinkler activation, no fire - unintentional 1 1.04% $0 0.00% 743 Smoke detector activation, no fire - unintentional 8 8.33% $0 0.00% Date: 1/15/2014 Page: 1

Date Range: From 12/1/2013 to 12/31/2013 Incident Type Report (Summary) Dover Fire Department Count Pct of Total Est Total Est Incident Type Incidents Loss Loss 744 Detector activation, no fire - unintentional 1 1.04% $0 0.00% 745 Alarm system activation, no fire - unintentional 3 3.13% $0 0.00% Totals 30 31.25% $0 0.00% 8 Severe Weather & Natural Disaster Totals 0 0.00% $0 0.00% 9 Special Incident Type Totals 0 0.00% $0 0.00% Totals 96 $0 Date: 1/15/2014 Page: 2

8:41 AM Robbins Hose Company # 1, Inc. 01/14/14 Accrual Basis Profit & Loss Detail December 2013 Type Date Num Name Memo Clr Split Amount Balance Ordinary Income/Expense Apparatus Repairs & Maintenance Check 12/22/2013 1006 Witmer Public Safety Invoice # 1514666 City Fund Account 183.85 183.85 Check 12/29/2013 1011 RJS Repair Chief's Vehicle- brakes, oil change City Fund Account 708.33 892.18 Total Apparatus Repairs & Maintenance 892.18 892.18 Electricity Check 12/14/2013 999 City of Dover Utility Acct # 44343-32052 (Sta 1) City Fund Account 2,335.25 2,335.25 Check 12/14/2013 999 City of Dover Utility Acct # 44255-31966 (Sta 2) City Fund Account 465.18 2,800.43 Total Electricity 2,800.43 2,800.43 Heating Expenses- Gas Check 12/14/2013 998 Chesapeake Utilities Acct # 01-300566-14195-1- (Sta 2 from 10/2 City Fund Account 147.73 147.73 Check 12/14/2013 998 Chesapeake Utilities Acct # 01-72348-3180-1- (Sta 1 from 11/05 t City Fund Account 1,177.55 1,325.28 Total Heating Expenses- Gas 1,325.28 1,325.28 Office Supplies Check 12/29/2013 1009 Staples Advantage Printer Cartridges for Cheif's Admin City Fund Account 139.30 139.30 Total Office Supplies 139.30 139.30 Program Expenses Check 12/14/2013 1000 The Trophy Man Name tags for lockers City Fund Account 175.00 175.00 Check 12/22/2013 1006 Witmer Public Safety Invoice # 1514942 City Fund Account 256.31 431.31 Check 12/22/2013 1007 Wayside Body Shop Repairs to Engine 6 City Fund Account 4,390.17 4,821.48 Total Program Expenses 4,821.48 4,821.48 Radio Repairs Check 12/22/2013 1005 Magnum Fire Siren repair-04/17/13 City Fund Account 442.50 442.50 Total Radio Repairs 442.50 442.50 Small Tools Check 12/14/2013 1002 Townsend Bros. Chevrolet Spare key for Chiefs Vehicle City Fund Account 29.82 29.82 Page 1 of 5

8:41 AM Robbins Hose Company # 1, Inc. 01/14/14 Accrual Basis Profit & Loss Detail December 2013 Type Date Num Name Memo Clr Split Amount Balance Check 12/15/2013 1003 Imprints Label & Decal Equipment labels City Fund Account 315.00 344.82 Check 12/22/2013 1004 Kunkel Auto Supply Invoice # 056433057 City Fund Account 14.94 359.76 Total Small Tools 359.76 359.76 Uniforms Check 12/29/2013 1008 Tim Onushco Printing Dispatcher Uniform Shirts City Fund Account 355.00 355.00 Check 12/29/2013 1010 Charles Boyer Officers badges City Fund Account 278.80 633.80 Total Uniforms 633.80 633.80 Water/Sewer Check 12/14/2013 999 City of Dover Utility Acct # 44345-32054 (Sta 1) City Fund Account 49.25 49.25 Check 12/14/2013 999 City of Dover Utility Acct # 44341-32050 (Sta 1) City Fund Account 11.54 60.79 Check 12/14/2013 999 City of Dover Utility Acct # 44253-31964 (Sta 2) City Fund Account 11.54 72.33 Check 12/14/2013 1001 Sharp Water Culligan Invoice # 485824 City Fund Account 20.00 92.33 Check 12/14/2013 1001 Sharp Water Culligan Invoice # 486250 City Fund Account 125.00 217.33 Total Water/Sewer 217.33 217.33 11,632.06 11,632.06 Net Ordinary Income -11,632.06 -11,632.06 -11,632.06 -11,632.06 Page 2 of 5

FY 12-13 City Funded Account Balance Sheet ACCOUNT BUDGET SPENT BALANCE Apparatus Repairs & Maintenance $ 67,000.00 $ 61,059.28 $ 5,940.72 Building Maintenace Supplies $ 1,650.00 $ 1,650.00 Contractual Services $ 16,587.00 $ 16,587.00 Electricity $ 51,820.00 $ 21,016.50 $ 30,803.50 Gasoline $ 19,050.00 $ 9,905.55 $ 9,144.45 Heating Expenses- Gas $ 20,000.00 $ 2,406.09 $ 17,593.91 Medical Supplies $ 700.00 $ 700.00 Office Supplies $ 2,500.00 $ 322.93 $ 2,177.07 Other Equipment Repairs $ 4,000.00 $ 1,337.63 $ 2,662.37 Program Expenses $ 36,630.00 $ 19,961.23 $ 16,668.77 Radio Repairs $ 2,000.00 $ 1,148.50 $ 851.50 Safety & Security $ 2,150.00 $ 149.65 $ 2,000.35 Small Tools $ 4,800.00 $ 937.70 $ 3,862.30 Telephone $ 13,340.00 $ 3,257.68 $ 10,082.32 Training & Travel $ 8,815.00 $ 4,928.50 $ 3,886.50 Uniforms & Firefighting Gear $ 27,100.00 $ 1,544.15 $ 25,555.85 Water/ Sewer $ 3,150.00 $ 1,462.45 $ 1,687.55 Balance as of: 12/31/13

Time Period From 1/1/2013 to 12/31/2013 Alarms by Month of Year Dover Fire Department Month Totals January 89 Febuary 71 March 79 April 81 May 98 June 87 July 93 August 93 September 85 October 101 November 72 December 96 No Date 0 Total Calls 1,045 Date: 1/15/2014 Page: 1

Dover Police Department Monthly Report To Mayor and City Council “To Protect and Serve” December 2013

January 24, 2013 Honorable Carleton E. Carey, Sr., Mayor Members of Dover City Council City Hall Dover, DE 19901 Mayor Carey and Council Members: The following is the monthly report for Dover Police Department activities for the month of December 2013: COMPLAINTS Total complaints received through December 31st, numbered 35,678. This is a decrease of 380 complaints over the same time period last year. 40,000 39,000 36,058 38,000 35,678 37,000 34,783 36,000 33,692 35,000 34,000 33,000 32,000 31,000 30,000 28,440 29,000 28,000 27,000 26,000 25,000 24,000 23,000 22,000 21,000 20,000 2009 2010 2011 2012 2013 CRIMINAL INVESTIGATIONS 25 Cases Reported in 20 December 15 Cases Cleared in December 9 10 5 6 4 Cases Cleared 5 1 3 3 from Previous 0 0 Months 0 Burglary Robbery Rape

Report to Mayor and Council December 2013 Page 3 COMMUNITY POLICING/QUALITY OF LIFE SECTION ENFORCEMENT ACTION Contacts ABANDONED VEHICLES 0 ALCOHOL VIOLATIONS/DUI’S 7 ASSIST OTHER 0 WARRANTS ON FILE 1 BIKE ON SIDEWALK 0 CITY PARK VIOLATIONS 0 CRIMINAL ARRESTS 6 DRUG RELATED ARRESTS 5 LOUD MUSIC 0 MISCELLANEOUS VIOLATIONS 9 PARKING VIOLATIONS 12 PEDDLER 0 MEETINGS 152 PROSTITUTION 0 COLLECTION OF DELINQUENT 1 DCO’S WANTED CHECKS/CPC’S 10 TRAFFIC ARRESTS 11 WARNINGS 5 FUGITIVE 3 TOTAL CONTACTS 222 TRAFFIC ARRESTS 22,000 20,469 21,000 19,969 The department issued 16,954 traffic citations 19,197 20,000 through this reporting period. This is an increase 19,000 16,954 of 899 citations over the number issued during the 18,000 17,000 16,055 same period last year. 16,000 15,000 14,000 13,000 12,000 11,000 10,000 2009 2010 2011 2012 2013 TRAFFIC CRASHES 1,986 1,989 2,000 1,910 1,872 Through December 31, 2013, Dover Police 1,805 investigated 1,989 traffic crashes. This is an 1,900 1,800 increase of 3 crashes investigated during the same 1,700 period last year. 1,600 1,500 1,400 1,300 1,200 1,100 1,000 2009 2010 2011 2012 2013

Report to Mayor and Council December 2013 Page 4 911 CENTER During the month of December, the Dover Police Department handled a total of 8,509 calls 24% averaging 275calls per day. Dispatchers handled 2,078 calls on the 911 wireless lines, 622 calls on the 911 landlines, and 152 calls on the Voice Over 911 Wireless Internet Protocol lines, the remaining 5,657 were 911 Landline administrative calls. 7% VolP 67% 2% Administrative CITY ORDINANC E SUMMONS 8,216 8,599 8,268 Through December 31st, we issued 7,564 8,700 8,500 8,300 7,564 City ordinance summons, an increase of 8,100 7,900 7,312 7,700 7,500 252 summonses over the same period last 7,300 7,100 6,900 year. *Note: Of those summonses issued 6,700 6,500 5,739 6,300 in November, 13 DCO’s were issued for 6,100 5,900 5,439 5,555 5,700 5,500 5,283 handicapped parking violations, 10 for 5,300 4,762 5,100 4,900 fire lane parking violations, 72 for false 4,700 4,500 4,300 alarms (0, for 1-2, 38, for 3-5 alarms, 9, 4,100 3,900 3,700 for 6-9 alarms, 12, for 10-15 alarms, and 3,500 3,300 13 for 16 or more alarms) and 7 for noise 3,100 2,900 2,700 2,500 violations (1 for vehicle violations and 6 2009 2010 2011 2012 2013 for residence violations). ISSUED PAID Please visit our new website at www.doverpolice.org for up to date information on crimes and activities in the City of Dover. Respectfully Submitted, James E. Hosfelt, Jr. Chief of Police

1 of 4 City of Dover Capital Investment Plan Project Tracking Report Quarterly Report as of December 31, 2013 Points to Remember - * Original Project Budget = Original Total Project Budget initially included in approved annual budget. * Latest Project Budget = Revised Total Project Budget included in most recent approved annual budget or one of the following: bond resolution, revolving fund loan agreement, Council approved budget amendment, or City Manager approved amendment as per the Budget Amendment Procedure. * Current Fiscal Year - Revised Fiscal Year Budget = Current Year approved project budgets plus carry forward balances of unspent budgets in the prior fiscal year. Project Carry Forward balances will be submitted to City Council for amendment in January 2010. Can also be amended with City Manager approval per the Budget Amendment Procedure. * Water Quality, Inflow/Infiltration, Distribution Upgrades and New Development projects are budgeted as a blanket project and once individual projects are identified and estimated they are created using an allocation of the overall budgeted amount. * Status and Comments provided by City Manager. * For Finance purposes projects are considered completed when placed in service and all charges have been processed. Community Water & Total Current Year Budget Funding Sources General Transportation Wastewater Electric CIP Budget Balance $ 2,961,200 $ 130,300 $ 4,734,000 $ 518,300 $ 8,343,800 Restricted MSA (non Public Safety) 251,200 - - - 251,200 Contractor Contributions 264,800 - - - 264,800 General Billings for Reimbursement of Expense - - - 440,000 440,000 Debt Financing - - 4,129,900 - 4,129,900 Other State/Federal Grants 165,000 - - - 165,000 Impact Fee Reserves - - 390,000 - 390,000 State Community Transportation Funds 60,500 1,387,600 - - 1,448,100 Gifts/Donations 5,000 - - - 5,000 Transfer from Impact Fee Reserve - - 1,000,000 - 1,000,000 Transfer from General Fund 1,278,300 - - 1,278,300 Transfer from Operating Funds - - 2,563,200 4,918,600 7,481,800 Transfer from Parkland Reserve 80,000 - - - 80,000 Interest Income - 500 25,000 25,200 50,700 Total Funding Sources (Unaudited) $ 5,066,000 $ 1,518,400 $ 12,842,100 $ 5,902,100 $ 25,328,600

2 of 4 City of Dover General Fund - Major CIP Projects Quarterly Report as of December 31, 2013 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project Current Revised Fiscal Project Project Project To Date Budget % Budget Fiscal Year Fiscal Year YTD Budget % Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2009 2 LB0901 M/G/L New Library Project $ 18,200,000 $ 20,469,100 $ 20,447,527 $ 21,573 99.9% $ - $ 411,500 $ 73,428 $ 338,072 17.8% Complete LEED Certification complete in FY 2014 3 Totals - FY09 $ 18,200,000 $ 20,469,100 $ 20,447,527 $ 21,573 99.9% $ - $ 411,500 $ 73,428 $ 338,072 17.8% 4 5 FY 2013 Asbestos survey done of building; Future 6 PR1301 Roof Replacement @ Dover Park $ 30,000 $ 30,000 $ 6,995 $ 23,005 23.3% $ - $ - $ - $ - 0.0% On Hold plans for building being evaluated 7 ST1302 Street & Alley Program - 1,414,500 - 1,414,500 0.0% - - - - 0.0% FY 2014 Moved to General Capital Projects Fund 8 ST1304 Garrison Farm Improvements 1,924,000 2,000,000 124,642 1,875,358 6.2% - 1,936,100 60,705 1,875,395 3.1% In process Financed by Future Capacity Reserve 9 ST1405 G FY 2012 MSA - Capital non-safety - 265,215 52,295 212,920 19.7% - 251,200 38,332 212,868 15.3% In process Restricted MSA Funding 10 11 Totals - FY 2013 $ 1,954,000 $ 3,709,715 $ 183,932 $ 3,525,783 5.0% $ - $ 2,187,300 $ 99,037 $ 2,088,263 4.5% 12 13 FY 2014 14 --- Vehicles & Equipment $ 963,800 $ 963,800 $ 258,458 $ 705,342 26.8% $ 908,800 $ 963,000 $ 258,458 $ 704,542 26.8% In process 15 CS1402 Security Cameras/Fence 55,000 55,000 - 55,000 0.0% 55,000 55,000 - 55,000 0.0% 16 FR1400 Annual Contribution to Robbins Hose 238,500 238,500 238,515 (15) 100.0% 238,500 238,500 238,515 (15) 100.0% Complete Truck Payments 17 IT1400 Server & Backup Solution 7,000 7,000 - 7,000 0.0% 7,000 7,000 - 7,000 0.0% 18 PD1401 Copier Replacement 10,000 10,000 8,865 1,135 88.7% 10,000 10,000 8,865 1,135 88.7% In process 19 PD1402 Totaled Vehicle Replacement 20,000 20,000 - 20,000 0.0% 20,000 20,000 - 20,000 0.0% 20 PR1401 A/C System @ Pitts Center 65,000 65,000 - 65,000 0.0% 65,000 65,000 - 65,000 0.0% 21 PR1402 Schutte Park Land Improvement 30,000 30,000 - 30,000 0.0% 30,000 30,000 - 30,000 0.0% 22 ST1402 FY 2014 Concrete Program 70,000 70,000 2,680 67,320 3.8% 70,000 70,000 2,680 67,320 3.8% In process Bids going out in February 23 ST1403 B/L FY 2014 Bonded Street Program 740,000 690,000 335,445 354,555 48.6% - 692,100 335,445 356,655 48.5% In process Approximately 70% complete 24 PD1302 Police Parking Lot 50,000 51,800 - 51,800 0.0% - 51,800 - 51,800 0.0% 25 ST1404 Village of Westover IV 264,800 264,800 - 264,800 0.0% - 264,800 - 264,800 0.0% 26 27 Totals - FY 2014 $ 2,514,100 $ 2,465,900 $ 843,962 $ 1,621,938 34.2% $ 1,404,300 $ 2,467,200 $ 843,962 $ 1,623,238 34.2% 28 29 30 Grand Totals $ 22,668,100 $ 26,644,715 $ 21,475,421 $ 5,169,294 80.6% $ 1,404,300 $ 5,066,000 $ 1,016,427 $ 4,049,573 20.1% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. G = Grant funded project B/L = To be financed through bonds or commercial loan; Projects will be completed through CT Fund, therefore the loan proceeds will be transferred from Capital Fund into the Community Transportation Fund;

3 of 4 City of Dover Community Transportation & General Fund Street Funds - Major CIP Projects (Final) Quarterly Report as of December 31, 2013 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project Current Revised Fiscal Project Project Project To Date Budget % Budget Fiscal Year Fiscal Year YTD Budget % Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2002 Authorization from Legislature to reallocate to South Street and project should finish by end of 2 CT0212 South Street paving $ 80,400 $ 80,400 $ - $ 80,400 0.0% $ - $ 80,400 $ - $ 80,400 0.0% year 3 Totals $ 80,400 $ 80,400 $ - $ 80,400 0.0% $ - $ 80,400 $ - $ 80,400 0.0% 4 5 FY 2009 6 CT0555 Little League Park paving $ 11,600 $ 11,600 $ - $ 11,600 0.0% $ - $ 11,600 $ - $ 11,600 0.0% Re-program for signage 7 Totals $ 11,600 $ 11,600 $ - $ 11,600 0.0% $ - $ 11,600 $ - $ 11,600 0.0% 8 9 FY 2007 10 CT0708 E. Water Street Brick $ 65,000 $ 65,000 $ - $ 65,000 0.0% $ - $ 65,000 $ - $ 65,000 0.0% Specialty contract needed 11 Totals $ 65,000 $ 65,000 $ - $ 65,000 0.0% $ - $ 65,000 $ - $ 65,000 0.0% 12 13 FY 2009 Trying to re-program for Schutte 14 CT0977 M Schutte Parking Lot $ 22,000 $ 22,000 $ - $ 22,000 0.0% $ - $ 22,000 $ - $ 22,000 0.0% park sidewalk 15 Totals $ 22,000 $ 22,000 $ - $ 22,000 0.0% $ - $ 22,000 $ - $ 22,000 0.0% 16 17 FY 2012 18 CT1201 M North Street Roundabout $ 500,000 $ 572,200 $ 228,427 $ 343,773 39.9% $ - $ 572,200 $ 228,427 $ 343,773 39.9% 35% Site work initiated 19 TE0601 M Lincoln Park Center 900,000 1,423,500 523,277 900,223 36.8% - - - - 0.0% Started On-going 20 Totals $ 1,400,000 $ 1,995,700 $ 751,704 $ 1,243,996 37.7% $ - $ 572,200 $ 228,427 $ 343,773 39.9% 21 22 FY 2013 23 CT1317 Wesley College Phase I 148,600 148,600 107,335 41,265 72.2% $ - $ 109,300 $ 68,079 $ 41,221 62.3% Complete awaiting bill Transfer to General Fund for Security Prior year unused GF Allocation 24 MR1301 Cameras 102,400 102,400 48,240 54,160 47.1% - 54,200 - 54,200 0.0% moved to Capital Project Fund. 25 CT1369 Bayard Ave, Orchard Ave & Morris Dr. 130,000 289,378 - 289,378 0.0% - 289,400 - 289,400 0.0% FY 2013 CT agreement 26 $ 381,000 $ 540,378 $ 155,575 $ 384,803 28.8% $ - $ 452,900 $ 68,079 $ 384,821 15.0% 27 28 FY 2014 29 CTxxxx Unapplied CT Projects (placeholder) $ 500,000 $ 500,000 $ - $ 500,000 0.0% $ 500,000 $ 245,200 $ - $ 245,200 0.0% Future CT Agreements 30 ST1401 American Ave - 62,800 62,800 - 100.0% - 62,800 62,800 - 100.0% Prior year unused GF Allocation 31 Unallocated prior year Gen Fund Alloc. - 6,300 - 6,300 0.0% - 6,300 - 6,300 0.0% Prior year unused GF Allocation. 32 $ 500,000 $ 569,100 $ 62,800 $ 506,300 11.0% $ 500,000 $ 314,300 $ 62,800 $ 251,500 20.0% 33 34 Grand Totals $ 2,460,000 $ 3,284,178 $ 970,079 $ 2,314,099 29.5% $ 500,000 $ 1,518,400 $ 359,306 $ 1,159,094 23.7% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. C = Project funded by combination of CT Funds and General Fund B/L = To be financed through bonds or commercial loan; Projects will be completed through CT Fund, therefore the loan proceeds will be transferred from Capital Fund into the Community Transportation Fund;

4 of 4 Water/Wastewater Improvement & Extension Fund - Major CIP Projects Quarterly Report as of December 31, 2013 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Approved Revised Fiscal % Status / Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget % Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Complete Comments 1 FY 2008 2 WD0804 M 1.0 MG Elevated Water Storage $ 4,196,600 $ 2,556,000 $ 84,974 $ 2,471,026 3.3% $ 390,000 $ 2,473,500 $ 2,425 $ 2,471,075 0.1% 3.2% Design & land purchase underway 3 WD0805 M Piney Point Well 398,800 1,096,200 1,026,239 69,961 93.6% - 580,000 510,100 69,900 87.9% 85.0% Awarded bid JJID Feb. 2013 4 Totals - FY 2008 $ 4,595,400 $ 3,652,200 $ 1,111,213 $ 2,540,987 30.4% $ 390,000 $ 3,053,500 $ 512,525 $ 2,540,975 16.8% 5 6 FY 2009 7 WQ0907 SL/O Rt. 13 Water Main $ 1,023,700 $ 2,326,000 $ 2,173,195 $ 152,805 93.4% $ - $ 152,800 $ - $ 152,800 0.0% 100.0% Complete 6/30/13, in Litigation 8 9 FY 2010 10 WW1010 I Tar Ditch Interceptor Upgrade $ 518,200 $ 518,200 $ 49,856 $ 468,344 9.6% $ - $ 486,300 $ 17,884 $ 468,416 3.7% 6.2% Easement request sent to residents 11 12 FY 2013 Project awarded on 1/27, pre construction 13 WW1304 M Garrison Farm Improvements $ 1,828,000 $ 2,000,000 $ 241,797 $ 1,758,203 12.1% $ - $ 3,116,000 $ 133,635 $ 2,982,365 4.3% In Process meeting to follow. Project awarded, 95% design, 14 WD1302 M Garrison Farm Storage Tank 1,828,000 3,000,000 212,596 2,787,404 7.1% - 4,022,400 - 4,022,400 0.0% In Process construction to begin in Spring. Project designed, re-programmed for out 15 II1306 FY 2013 I & I Design 1,000,000 748,900 22,608 726,292 3.0% - 406,900 - 406,900 0.0% year. 16 II1404 Basin #5 I & I Buck Drive - - - - 0.0% - 342,000 - 342,000 0.0% In Process Project under design, 60% complete. 17 II1309 Dover Downs PS Upgrade - 16,000 15,864 136 0.0% - 16,000 15,864 136 99.2% Complete Completed by September 2013 18 II1310 Puncheon Run PS Upgrade - 21,000 20,020 980 0.0% - 21,000 20,020 980 95.3% Complete Completed in July 2013 19 Totals - FY 2013 $ 4,656,000 $ 5,785,900 $ 512,885 $ 5,273,015 66.9% $ - $ 7,924,300 $ 169,519 $ 7,754,781 2.1% 20 21 FY 2013 All vehicles have been ordered, awaiting 22 --- Vehicles & Equipment $ 354,000 $ 354,000 $ 53,560 $ 300,440 15.1% $ 364,000 $ 153,600 $ 53,560 $ 100,040 34.9% In Process delivery #422 (2/6/14) Contractor completed one wellhead 23 WD1401 Wellhead Redevelopment 75,000 75,000 - 75,000 0.0% 75,000 75,000 - 75,000 0.0% In Process redevelopment, started on second. 24 WD1403 Emergency Generators 80,000 60,000 - 60,000 0.0% 80,000 60,000 - 60,000 0.0% In Process Generator ordered, delivery late Feb. 25 WW1401 Inflow/Infiltration Removal 1,003,800 1,003,800 - 1,003,800 0.0% 1,003,800 - - - 0.0% In Process Buck Drive 60% designed Design 95% complete, DelDOT to bid out 26 TBD Denny's Road Water Main - 33,200 - 33,200 0.0% - 33,200 - 33,200 0.0% In Process 27 WD1201 I Pay-As-You-Go Water Station - 30,200 - 30,200 0.0% - 30,200 - 30,200 0.0% Staff finalizing bid documents 28 WD1304 Columbia Well - 34,800 - 34,800 0.0% - 34,800 - 34,800 0.0% no update 29 WQ1402 West Dover Connector - 11,000 - 11,000 0.0% - 11,000 - 11,000 0.0% In Process Design continuing, out to bid April 2014 30 WQ1401 Water Quality Improvements 905,000 - - - 0.0% 905,000 - - - 0.0% no update Design complete. Purchase materials in 31 WW1204 Baltray Pump Station - 104,100 - 104,100 0.0% - 104,100 - 104,100 0.0% In Process February 2014 32 WW1205 Dover Brook Pump Station - 52,800 - 52,800 0.0% - 52,800 - 52,800 0.0% Bids due April 15, 2014. 33 WW1206 Brandywine Pump Station - 368,100 - 368,100 0.0% - 368,100 - 368,100 0.0% In Process Design 95% complete, need to acquire 34 WW1207 McKee PS - 47,300 - 47,300 0.0% - 47,300 - 47,300 0.0% Need to rebid project. 35 WW1301 Hazeltville Rd Interceptor - 30,000 - 30,000 0.0% - 30,000 - 30,000 0.0% Survey to begin in coming weeks. 36 WW1302 Lakeview PS - 52,000 - 52,000 0.0% - 52,000 - 52,000 0.0% Survey to begin in coming weeks. 37 WW1303 Westover PS - 65,000 - 65,000 0.0% - 65,000 - 65,000 0.0% Survey to begin in coming weeks. 38 II1401 Kent Ave. Repair - 75,000 - 75,000 0.0% - 75,000 - 75,000 0.0% In Process 95% complete Design continuing, out to bid April 2014 39 II1402 West Dover Connector - 33,100 - 33,100 0.0% - 33,100 - 33,100 0.0% 40 Totals - FY 2014 $ 2,417,800 $ 2,429,400 $ 53,560 $ 2,375,840 0.0% $ 2,427,800 $ 1,225,200 $ 53,560 $ 1,171,640 4.4% 41 42 Grand Totals $ 13,211,100 $ 14,711,700 $ 3,900,708 $ 10,810,992 26.5% $ 2,817,800 $ 12,842,100 $ 753,489 $ 12,088,611 5.9% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. SL = State Loan Project - construction phase is financed I = Impact Fee (partially) financed project O = Operating revenues

FINAL READING CITY OF DOVER PROPOSED ORDINANCE #2014-01 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 2 MET: 3 That Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, Section 102-111 - Purpose, be 4 amended by inserting the blue, bold text and deleting the text indicated in red, bold, strikeout, as follows: 5 In the option opinion of city council, the abatement of city real estate taxes for certain qualifying 6 industries and businesses defined herein best promotes the public welfare by providing incentives for them 7 to expand or locate in the city, thereby creating new employment opportunities for the citizens of the city 8 and ultimately strengthening the city's tax base. 9 BE IT FURTHER ORDAINED: 10 That Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, be amended by adding a new 11 Section 102-118 - Revocation of Eligibility, to read as follows: 12 Sec. 102-118 - Revocation of Eligibility 13 The beneficiary of the incentives provided by this Article must remain current on all obligations due 14 the City. If, at any time after the incentives have been granted, the beneficiary of the incentives becomes 15 delinquent on any of the obligations listed in Section 1-13(b), the city manager shall revoke the eligibility 16 for any portion of the incentives not yet received by the beneficiary. Notice shall be given to such 17 beneficiary in writing. 18 For the purposes of this section, the beneficiary of the incentives shall include the person or 19 artificial entity that receives the incentive and the owner of one-half or greater interest in an artificial entity 20 that receives the incentive. 21 BE IT FURTHER ORDAINED: 22 That Appendix C - Downtown Redevelopment, Article II - Definitions, be amended by deleting it in its 23 entirety and inserting in lieu thereof the following: 24 The following words, terms and phrases, when used in this ordinance, shall have the meanings 25 ascribed to them in this article, except where the context clearly indicates a different meaning: 26 Section 1. Beneficiary of the incentives. 27 The beneficiary of the incentives shall include the person or artificial entity that receives the incentive 28 and the owner of one-half or greater interest in an artificial entity that receives the incentive. 29 Section 2. Downtown Dover Partnership. 30 The Downtown Dover Partnership shall be established for the purpose of fostering redevelopment 31 within the target area.

Proposed Ordinance #2014-01 - Appendices C and E - Development/Redevelopment Incentives Page 2 32 Section 3. Eligible project. 33 Eligible project shall mean a new construction or renovation which: 34 (a) Is located within the target area; and 35 (b) The fair market value of the materials to be used in and the labor to be performed on the project 36 exceeds the sum of $15,000.00; and 37 (c) Is for commercial, office, or a residential use; and 38 (d) Conforms to the intent of this ordinance. 39 In order for a residential use to be an eligible project, the object of the construction or renovation 40 must be a dwelling unit as defined in article 12 of the City of Dover zoning ordinance [appendix B]. 41 Construction or renovation of accessory buildings as defined in article 12 of the City of Dover 42 zoning ordinance [appendix B] shall not be eligible for development incentives. Construction or 43 renovation which constitutes ordinary replacement or routine maintenance shall not qualify as an 44 eligible project. 45 Section 4. Target area. 46 Target area shall mean that part of the city more particularly described as follows: 47 Beginning at a point at the intersection of the centerlines of Cecil and North State Streets, then 48 continuing on the centerline of North State Street in a southerly direction to the intersection of the 49 centerline of State Street and an extension of the centerline of Delaware Avenue, then continuing 50 on the centerline and an extension of the centerline of Delaware Avenue in an easterly direction to 51 the point of intersection of an extension of the centerline of Delaware Avenue and the St. Jones 52 River, then following the centerline of the St. Jones River in a southerly direction to the point of 53 intersection of the centerline of the St. Jones River and the southerly property line of lands now or 54 formerly of the Catholic Diocese of Wilmington, being the site of Holy Cross Roman Catholic 55 Church, then proceeding in a westerly direction along said property line to the easterly right-of-way 56 line of South State Street (U.S. Route 13-A), then crossing the right-of-way line of South State Street 57 in a westerly direction and joining the centerline of Hope Street and proceeding in a westerly 58 direction to the centerlines of Hope Street and South Governors Avenue, then proceeding in a 59 southerly direction along the centerline of South Governors Avenue to the point of intersection of 60 the centerlines of South Governors Avenue and Dover Street, then proceeding in a westerly direction 61 along the centerline of Dover Street to the point of intersection of the centerlines of Dover Street and 62 Westview Terrace, then continuing in a northerly direction on the centerline of Westview Terrace 63 to the point of intersection of the centerline of Westview Terrace and New Burton Road, then 64 proceeding in a northeasterly direction on the centerline of New Burton Road to the point of 65 intersection of New Burton Road and West Street, then continuing in a northerly direction along the 66 westerly right-of-way line of West Street to the point of intersection of the westerly side of the 67 right-of-way of West Street and the northerly property line of lands now or formerly of Dover 68 Rent-All, Inc., then continuing in a westerly direction along said property line to the point of 69 intersection of said property line and the lands of Conrail Railroad, then proceeding in a northerly 70 direction along the easterly right-of-way line of Conrail Railroad in a northerly direction to the point 71 of intersection of the centerline of West North Street and then westerly along the centerline of West 72 North Street to a point of intersection with an extension of the westerly property line of lands now

Proposed Ordinance #2014-01 - Appendices C and E - Development/Redevelopment Incentives Page 3 73 or of late of Michael Nash, being the site of the former Diamond Ice Company, then proceeding in 74 a northerly direction along the westerly property line of the Nash property and in a line extending 75 to the intersection of the southerly property line of lands now or of late Paul T. and Aiko Moore, and 76 then northwesterly and then northerly along the southern and western property line of the Moore 77 property and extending north to an intersection with the centerline of Lincoln Street, and then 78 easterly along the centerline of Lincoln Street to a point of intersection of an extension of the 79 westerly property line of lands now or formerly of Frank Moore et al., and then northerly along the 80 western property of Frank Moore et al. and extending to a point of intersection with the centerline 81 of Forest Street, then easterly along the centerline of Forest Street to a point of intersection with an 82 extension of the westerly property of the lands now or formerly of the Salvation Army, and then 83 northerly and easterly along the western and north property line of the Salvation Army property to 84 the point of intersection with lands now or of late Conrail Railroad, then northerly along the westerly 85 property line of Conrail Railroad and extending to a point of intersection with the centerline of West 86 Division Street, and then easterly along the centerline of East Division Street to the intersection of 87 the easterly right-of-way line of Conrail Railroad, and then northerly along the easterly right-of-way 88 line of Conrail Railroad to the intersection of the right-of-way of Conrail Railroad and the northerly 89 property line of lands now or of late of Southern States Cooperative, Inc., then proceeding in an 90 easterly direction a distance of 52.76 feet to the northeasterly corner of the lands now or of late of 91 Southern States Cooperative, Inc., then proceeding in a southerly direction along the easterly 92 property line of lands now or of late of Southern States Cooperative, Inc., to the point of intersection 93 of said property and the centerline of Cecil Street, then proceeding in an easterly direction along the 94 centerline of Cecil Street to the point of beginning, being the point of intersection of the centerline 95 of Cecil and North State Streets. 96 NOTE: This amendment deletes Section 2, Reserved, (which read: Section 2. Reserved. Editor's note - An 97 ordinance adopted Jan. 10, 2000, repealed section 2 which pertained to the eligibility period and derived 98 from an ordinance adopted March 13, 1995, and an ordinance adopted Jan. 11, 1999.) and re-orders the 99 definitions alphabetically. 100 BE IT FURTHER ORDAINED: 101 That Appendix C - Downtown Redevelopment, Article III - Eligibility, be amended by inserting the bold, 102 blue text and deleting the text indicated in bold, red, strikeout, as follows: 103 Section 1. Issuance of building permit. 104 Issuance of a city building permit for an eligible project must be obtained during the eligibility 105 period. 106 NOTE: The eligibility period expired on December 31, 1999 and was repealed by an ordinance adopted 107 January 10, 2000. 108 Section 2 1. [Development incentive eligibility.] 109 In order to be eligible for development incentives, the owner of an eligible project must agree to 110 contribute ten percent of the total value of the incentives received to the Downtown Dover Partnership for 111 reinvestment in downtown Dover.

Proposed Ordinance #2014-01 - Appendices C and E - Development/Redevelopment Incentives Page 4 112 Section 3 2. [Development incentive ineligibility.] 113 An otherwise eligible project shall be ineligible for development incentives if: 114 (a) An application for [a] building permit for the project [was] filed prior to the effective date of this 115 ordinance; or 116 (b) Construction or renovation commenced prior to the effective date of this ordinance; or 117 (c) Issuance of the certificate of occupancy and/or the completion and finalization of the building 118 permit occurs before the application for development incentives is received.; or 119 (d) The subject property is exempt from City of Dover real estate taxes; or 120 (e) The beneficiary of the incentives is delinquent on any of the obligations listed in Section 121 1-13(b). 122 Section 3. Revocation of Eligibility 123 The beneficiary of the incentives provided by this Appendix must remain current on all 124 obligations due the City. If, at any time after the incentives have been granted, the beneficiary of the 125 incentives becomes delinquent on any of the obligations listed in Section 1-13(b), the city manager 126 shall revoke the eligibility for any portion of the incentives not yet received by the beneficiary. Notice 127 shall be given to such beneficiary in writing. 128 BE IT FURTHER ORDAINED: 129 That Appendix E - Commercial and Industrial Building Redevelopment, Article II - Eligibility, be amended 130 by inserting the bold, blue text and deleting the text indicated in bold, red, strikeout, as follows: 131 Section 1. Eligible project. 132 Eligible project shall mean the renovation and establishment of a business in an existing commercial 133 or industrial building or tenant space which: 134 (a) Is a minimum of 5,000 square feet of floor area; and 135 (b) The fair market value of the materials to be used in and the labor to be performed on the project 136 exceeds the sum of $15,000.00; and 137 (c) Is for commercial, industrial, or office use; and 138 (d) The establishment of a new business is proposed; and 139 (e) Conforms to the intent of this ordinance. 140 Construction or renovation of accessory buildings as defined in Appendix B - Zoning, Article 12 - 141 Definitions, of the Dover Code of Ordinances shall not be eligible for redevelopment incentives.

Proposed Ordinance #2014-01 - Appendices C and E - Development/Redevelopment Incentives Page 5 142 Construction or renovation which constitutes ordinary replacement or routine maintenance shall not qualify 143 as an eligible project. Construction of new buildings shall not qualify as an eligible project. 144 Section 2. Redevelopment incentive ineligibility. 145 An otherwise eligible project shall be ineligible for redevelopment incentives if: 146 (a) An application for a building permit for the project was filed prior to the effective date of this 147 ordinance; or 148 (b) Construction or renovation commenced prior to the effective date of this ordinance; or 149 (c) Issuance of the certificate of occupancy and/or the completion and finalization of the building 150 permit occurs before the application for redevelopment incentives is received; or 151 (d) Construction or renovation commenced prior to the issuance of a building permit by the city of 152 Dover; or 153 (e) Applications for incentives provided in this ordinance shall be subject to the provisions of 154 Chapter 1 - General Provisions, Section 1-13 - Denial of permits or approvals for failure 155 to comply with requirements for payment, actions, or filings. 156 (e) The subject property is exempt from City of Dover real estate taxes; or 157 (f) The beneficiary of the incentives is delinquent on any of the obligations listed in 158 Section 1-13(b). 159 For the purposes of this section, the beneficiary of the incentives shall include the person or 160 artificial entity that receives the incentive and the owner of one-half or greater interest in an artificial 161 entity that receives the incentive. 162 Section 3. Revocation of eligibility. 163 The beneficiary of the incentives provided by this Appendix must remain current on all 164 obligations due the City. If, at any time after the incentives have been granted, the beneficiary of the 165 incentives becomes delinquent on any of the obligations listed in Section 1-13(b), the city manager 166 shall revoke the eligibility for any portion of the incentives not yet received by the beneficiary. Notice 167 shall be given to such beneficiary in writing. 168 For the purposes of this section, the beneficiary of the incentives shall include the person or 169 artificial entity that receives the incentive and the owner of one-half or greater interest in an artificial 170 entity that receives the incentive. 171 ADOPTED: * 172 S:\ORDINANCES\2014\DRAFT\Ordinance #2014-01 - Amending Chpt 102, Appendix C, and Appendix E - Eligibility for Incentives-Final Reading.wpd

Proposed Ordinance #2014-01 - Appendices C and E - Development/Redevelopment Incentives Page 6 173 SYNOPSIS 174 The proposed ordinance would amend the Downtown Redevelopment incentives, the 175 Commercial and Industrial Building Redevelopment incentives, and the Tax 176 Abatement incentives to require compliance with Section 1-13 - Clean Hands, and 177 provide for revocation of the incentives for beneficiaries who are delinquent on 178 obligations to the City. It would also make tax exempt properties ineligible for the 179 incentives. 180 (SPONSORS: Hutchison and Koenig) 181 Actions History 182 02/10/2014 - Scheduled for Final Reading 183 01/27/2014 - First Reading Held 184 01/13/2014 - Introduced at Legislative, Finance, and Administration Committee