Council Minutes and Exhibits 1-2

REGULAR COUNCIL MEETING The Regular Council Meeting was held on December 10, 2018 at 7:30 p.m. with Council President Slavin presiding. Council members present were Mr. Anderson, Mr. Sudler, Mr. Neil, Mr. Lewis, Mr. Cole, Mr. Polce (departed at 8:21 p.m.), Mr. Hare, and Mr. Lindell. Staff members present were Deputy Police Chief Stump, Ms. Peddicord, Mrs. Mitchell, Mrs. Melson-Williams, Fire Chief Carey, City Solicitor Rodriguez, and Mrs. McDowell. Mayor Christiansen was also present. OPEN FORUM The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Slavin declared the Open Forum in session and reminded those present that Council was not in official session and could not take formal action. Mr. El Ronnier Henry, 953 Myers Lane, Seaford, Delaware, noting that he is currently visiting his girlfriend who lives at 218 North Kirkwood Street in Dover, Delaware, spoke about discrimination that is being applied within the City when it comes to the regulation of private property and consumer goods. He advised that he was told that he had to have his car registered with DMV or it would be towed. Mr. Henry stated that towing his car would be against the law because UCC 382A, which deals with consumer goods for automobiles for traveling purposes, states that automobiles are exempt from taxation, and vehicles for hire or commercial purposes are subject to taxation. The invocation was given by Bishop Thomas L. Holsey, followed by the Posting of the Colors and the Pledge of Allegiance led by Cub Scout Pack 109 of Magnolia. AGENDA ADDITIONS/DELETIONS Mr. Sudler moved for approval of the agenda, seconded by Mr. Neil and unanimously carried. Mr. Lewis requested that item #10, Reappointments Recommended by Mayor Christiansen - Board of Adjustment, be removed from the consent agenda. Mr. Neil moved for approval of the consent agenda, as amended, seconded by Mr. Lindell and carried by a unanimous roll call vote. ADOPTION OF MINUTES - SPECIAL COUNCIL MEETING OF NOVEMBER 13, 2018 The Minutes of the Special Council Meeting of November 13, 2018 were unanimously approved by motion of Mr. Neil, seconded by Mr. Lindell and bore the written approval of Mayor Christiansen. ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF NOVEMBER 13, 2018 The Minutes of the Regular Council Meeting of November 13, 2018 were unanimously approved by motion of Mr. Neil, seconded by Mr. Lindell and bore the written approval of Mayor Christiansen.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 2 RESOLUTION NO. 2018-13 - COUNCILMAN BRIAN E. LEWIS The City Clerk read into the record proposed Resolution No. 2018-13 recognizing Councilman Brian E. Lewis’ service to the City of Dover. By motion of Mr. Sudler, seconded by Mr. Lindell, Resolution No. 2018-13 was unanimously adopted, as follows: WHEREAS, Brian E. Lewis was appointed to the Dover Human Relations Commission on October 13, 2008, serving until February 22, 2010, and was sworn into office as Councilman of the Second District on May 11, 2015 and served with distinction until December 27, 2018; and WHEREAS, throughout his tenure, Brian E. Lewis served as Chair of the Safety Advisory and Transportation Committee, and as a Member of the Construction Code Appeals Committee, Construction and Property Maintenance Code Board of Appeals, General Employee Pension Plan Board, Parks, Recreation, and Community Enhancement Committee, Police Chief Selection Committee, and the Police Pension Plan Retirement Committee; and WHEREAS, Brian E. Lewis demonstrated dedication to protecting the citizens of Dover. He served with sincere concern/or his community and his hands-on involvement was evident by his participation in neighborhood and community improvement events. He was a bold advocate for both the youth of Dover and the homeless community and has always placed the concerns and views of his constituents in the fore.front. Brian E. Lewis will always be remembered as a voice for the people. NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council congratulate Brian E. Lewis on his election as Kent County Sheriff, recognize that he will be sorely missed, and wish him and his family success in all future endeavors. BE IT FURTHER RESOLVED that the Mayor and Council express their sincere appreciation to Brian E. Lewis and his family for the dedicated years of service and personal sacrifices made on behalf of the City of Dover and direct the City Clerk to make this resolution a part of the permanent records of the City of Dover as a lasting symbol of appreciation and gratitude. ADOPTED: DECEMBER 10, 2018 On behalf of the Mayor, Council, and the citizens of the City of Dover, Mayor Christiansen presented the Resolution, a Dover Cup, and a key to the City to Councilman Brian E. Lewis as tokens of appreciation for his service to the City. Councilman Lewis thanked God for allowing him to serve as a Councilman for the City and extended his gratitude to the citizens of the Second District who entrusted him to represent them. He stated that it had been an honor and a privilege to be a Dover City Councilman, and that he will miss many people that he had the pleasure and opportunity to interact with during his term. Councilman Lewis advised that the most important lesson that he learned as a Councilman was to have the courage to do what you believe is morally right. A friend once told him that if something out there

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 3 was preventing you from being who you really are, fight. Councilman Lewis stated that he has always believed in making, or having, an impact today rather than leaving a legacy for tomorrow. He advised that when he decided to enter the political arena some years ago, starting with the school board, a family friend simply told him, "The approach to public office is simple. Be honest and accessible." Councilman Lewis advised that, as he moves forward, he thanks his colleagues on Council for their public service, noting that what they do is not easy, especially when trying to build a better future in this City for the days that lie ahead, and that, although they have not always agreed or gotten along, he believes they all serve to try and make a difference and that their best beliefs about each other and themselves can one day become the reality upon which this City is built. CERTIFICATE OF APPRECIATION - SENATOR BRIAN J. BUSHWELLER The City Clerk read the following Certificate of Appreciation into the record: CERTIFICATE OF APPRECIATION Presented to The Honorable Brian J. Bushweller State Senator 17th District It is with heartfelt gratitude and appreciation that we recognize the ten years of dedicated service to the citizens of the City of Dover and State of Delaware. His dedication and commitment to the betterment of all his constituents shall be long remembered. We appreciate his generous annual allotment of Community Transportation Fund contributions for improvements to the sidewalk and street network throughout the City of Dover, as well as, securing other funds for the Dover Police and Fire Departments and other projects, too numerous to mention. Best wishes for a happy retirement to Senator Brian J. Bushweller, his wife, Rocky, and his extended family. December 10, 2018 Mayor Christiansen stated that Senator Bushweller had done an exemplary job representing the 17th Senatorial District, but particularly the City of Dover. He presented the Certificate of Appreciation and a Dover Cup to Senator Bushweller in appreciation for his work in the Senate. Mr. Neil advised that he began his professional career as a newsman, an observer, trained to pull together facts, duly reporting them to the public without embellishment or personal interpretation. He noted that, early in his career, he came to the conclusion that elected officials fall into several categories. Some of them, not so nice. Then there are those who examine issues, ask questions, learn about the subject and make decisions, while not easy or politically expedient, vote for what they believe is best for the general welfare for the nation and/or state and the people they serve. These individuals are called statesmen or stateswomen. Mr. Neil noted that, in the 85 years of his

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 4 existence, he had not changed his mind as to what constitutes the best of the best and Brian Bushweller is a statesman. Mr. Neil stated that, since coming to Delaware, he had been fortunate to have been represented by two extraordinary statesmen, Senator Bushweller and previously by Senator Bruce Ennis. As a relative newcomer to the role of elected official, he stated that Brian Bushweller was a model to be emulated. Senator Bushweller advised that what he liked best about being the State Senator for the 17th District was that he loved the opportunity that being a State Senator gave him to work with other people in the community who themselves are committed people trying to do good things. He noted that there are a bunch of people who work hard at trying to do good things for our community, and for the past 10 years he had the opportunity to work with all of them on something good for the people of Dover and for the people of the 17th District. Senator Bushweller noted that he and his wife, Rocky, came to Dover 37 years ago with a plan to move off to bigger and better things; however, they quickly became aware that, especially with five kids, Dover was a great place to live, and they gave up on the idea of leaving town. He advised that he was very appreciative of the recognition and the opportunity to work with the City over many years, and that he looked forward to working together on a continuing basis into the future. Senator Elect Trey Paradee, Senator Bushweller’s successor, advised that there are dozens of workers whose jobs are more secure and thousands of college students at DelTech and Del State whose college education is more attainable because of the work of Brian Bushweller and that, to him, is what the legacy of Brian Bushweller will be going forward for many, many years to come. Senator Bushweller thanked Senator Elect Paradee for making the decision not to run for re-election easier for him. PUBLIC HEARING - VIOLATION OF THE DANGEROUS BUILDING ORDINANCE - EMERGENCY CASE - PROPERTY LOCATED AT 350 MARTIN STREET, OWNED BY GLENN R. DAVIS AND WILLIAM F. DAVIS (LTR) In accordance with Chapter 22, Article XI - Dangerous Buildings, Sec. 22-388 - Emergency cases, of the Dover Code, in cases where it reasonably appears that there is an immediate danger to the life or safety of any person, unless a dangerous building is immediately repaired, vacated and closed, or demolished, the building inspector shall report such facts to the council, which may cause the immediate repair, vacation, or demolition of such dangerous building. A public hearing was duly advertised for this time and place to consider a violation of the Dangerous Building Ordinance at 350 Martin Street, owned by Glenn R. Davis and William F. Davis (LTR). Mr. Tim Taraila, Code Enforcement Supervisor, and Mr. Jason Osika, Fire Marshall, reviewed a presentation depicting the condition of the property and providing a chronological history of the property (Exhibit #1). Staff recommended: 1) Declaring this building and all accessory structures on this property dangerous; 2) Ordering the property demolished or repaired by December 26, 2018 by the owner or equity owner at their own risk; 3) Ordering the Fire Marshal and Chief Code Enforcement Officer

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 5 to cause the demolition of the structures if not completed by the owner within 10 days of the date established by City Council; 4) Ordering the City Manager with the assistance of the City Solicitor to cause the cost of 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. Responding to Mr. Sudler, Mr. Taraila advised that all of the outstanding bills would not have to be satisfied before the property owner is able to obtain a demolition permit. Mr. Osika advised that it was an undetermined fire and that the case is still open. Mr. Polce, noting that the building was deemed uninhabitable in 2014, asked what they need to do as a Council to ensure that blighted buildings, that are probably used for illicit behavior and activity, do not continue accruing structural issues for four years, leading to a cost to the Fire Department to respond to the fire and putting lives at risk. Responding, Mr. Osika stated that the City currently has a great vacant building program with a code enforcement officer assigned strictly to vacant buildings. He noted that all vacant buildings are registered and there is a good record of what is vacant. Mr. Osika stated that the property owner, the fire department, and the police department are all notified when a property is registered as vacant. He advised that code enforcement sends notices to the property owner regarding repairing or maintaining the property. If they are not repaired, they begin the violation of the dangerous building process. Mr. Osika noted that the demolition list must be prioritized according to the condition of the property and the amount of funding available for demolition. He stated that this property was not in the worst condition originally and was still structurally intact; however, the fire caused it to be secured by the code enforcement officers and it has moved up the list because of its current condition. Mr. Sudler asked if the property owner was contacted to secure the property. Responding, Mr. Osika advised that they try to have the owner take care of as much as they can. If it becomes a problem, the police will call code enforcement and they will board the property themselves or have contractors do the work. Mr. Osika noted that the cost of the materials is billed to the property. Mr. Sudler asked if more staff was necessary to monitor the vacant or abandoned properties to see if people are in the properties and to check for fire hazards. Mr. Osika advised that the staffing requests had been presented to the City Manager for consideration during the budget process. Council President Slavin declared the public hearing open and, with no one being present wishing to speak, the public hearing was closed. Staff recommended: 1) Declaring this building and all accessory structures on this property dangerous; 2) Ordering the property demolished or repaired by December 26, 2018 by the owner or equity owner at their own risk; 3) Ordering the Fire Marshal and Chief Code Enforcement Officer to cause the demolition of the structures if not completed by the owner within 10 days of the date established by City Council; 4) Ordering the City Manager with the assistance of the City Solicitor to cause the cost of demolition to be charged against the land on which the building exists as a

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 6 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. Mr. Anderson moved for approval of Staff’s recommendation. The motion was seconded by Mr. Neil and carried by a unanimous roll call vote. REZONING REQUEST - PUBLIC HEARING/FINAL READING OF PROPOSED ORDINANCE #2018-11 A public hearing was duly advertised for this time and place to consider the rezoning of property located at 971, 975, 983, 987, and 991 Forest Street, 21 and 27 Saulsbury Road, and 20 and 30 Carver Road, consisting of nine (9) parcels of land totaling 2.32 +/- acres, owned by Faithwork LLC and Paul Davis and Justine J. Davis (Paul and Justine Davis Revocable Trust). The properties are currently zoned IO (Institutional and Office Zone), C-1A (Limited Commercial Zone), and C-PO (Commercial and Professional Office Zone) subject to the COZ-1 (Corridor Overlay Zone) and the proposed zoning is C-2A (Limited Central Commercial Zone) subject to the COZ-1 (Corridor Overlay Zone). (Tax Parcels: ED-05-076.07-01-62.00-000, ED-05-076.07-01-37.00-000, ED-05-076.07-01-36.00-000, ED-05-076.07-01-35.00-000, ED-05-076.07-01-34.00-000, ED-05-076.07-01-38.00-000, ED-05-076.07-01-39.00-000, ED-05-076.07-01-61.00-000, and ED-05-076.07-01-60.00-000; Planning Reference: Z-18-03; Council District: 4). Mr. Neil moved that the Final Reading of Proposed Ordinance #2018-11 be acknowledged by title only, seconded by Mr. Lindell and unanimously carried. (The First Reading of the ordinance was accomplished during the Council Meeting of October 22, 2018.) Planner's Review Mrs. Dawn Melson-Williams, Principal Planner, reviewed the petition to amend the zoning district and the findings and recommendations of the Planning Commission. She noted that the Planning Commission recommended approval of the rezoning request. Mr. Sudler asked if how the rezoning might affect some of the residents in that area had been considered or if they had received any input from the residents. Responding, Mrs. Melson-Williams advised that no members of the public spoke during the Planning Commission Public Hearing. She noted that the Comprehensive Plan identifies this block, which is bounded by Carver Road, as a commercial area and the Lincoln Park area is more of a residential land use classification. Mrs. Melson-Williams noted that a legal ad was placed in the local newspaper and a notice of that evening’s public hearing was physically posted on the property with a bright yellow sign. Public Hearing Council President Slavin declared the public hearing open. Mr. Tolano Anderson, 50 Dove Creek Terrace, Dover, advised that he was the owner of Faithwork, LLC, and that over the past decade and a half, he and his wife have gone through the process of accumulating the properties and have recently joined with Mr. Paul Davis. He stated that they are excited about their project and the business opportunities and the potential for creating jobs.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 7 Mr. Anderson noted that the process has been really good and that they have worked well with the Planning Staff and Development Advisory Committee (DAC) and they were happy to have the Staff recommendation of support. He stated that they have no objections to combine the three different zones into one zone, and do not object to the properties being subject to the Corridor Overlay Zone. Mr. Anderson advised that they have had several meetings with the Delaware Department of Transportation (DelDOT) and the traffic impact study is going to help them formulate their plan and engineer the traffic flows associated with this project. Mr. Paul Davis, 5233 South DuPont Highway, Dover, stated that he and his wife, Justine Davis, own the two parcels around the corner, which is currently the Subway property. He advised that they met with Mr. Anderson and are working on a plan to develop the whole area. Mr. Davis stated that he was a big supporter of economic development and creating jobs and that they were very excited about the project. He also thanked the Planning staff and all involved and requested support for their application. There being no one else present wishing to speak, Council President Slavin declared the hearing closed. Mr. Hare moved for approval of the rezoning request, as recommended by the Planning Commission. The motion was seconded by Mr. Neil and, by a unanimous roll call vote, Council adopted Ordinance #2018-11, as follows: AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTIES LOCATED AT 971, 975, 983, 987, AND 991 FOREST STREET, 21 AND 27 SAULSBURY ROAD, AND 20 AND 30 CARVER ROAD WHEREAS, the City of Dover has enacted a zoning ordinance regulating the use of property within the limits of the City of Dover; and WHEREAS, it is deemed in the best interest of zoning and planning to change the permitted use of property described below from IO (Institutional and Office Zone), C-1A (Limited Commercial Zone), and C-PO (Commercial and Professional Office Zone) subject to the COZ-1 (Corridor Overlay Zone) to C-2A (Limited Central Commercial Zone) subject to the COZ-1 (Corridor Overlay Zone). NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. That from and after the passage and approval of this ordinance the Zoning Map and Zoning Ordinance of the City of Dover have been amended by changing the zoning designation from IO (Institutional and Office Zone), C-1A (Limited Commercial Zone), and C-PO (Commercial and Professional Office Zone) subject to the COZ-1 (Corridor Overlay Zone) to C-2A (Limited Central Commercial Zone) subject to the COZ-1 (Corridor Overlay Zone) on that property located at 971, 975, 983, 987, and 991 Forest Street, 21 and 27 Saulsbury

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 8 Road, and 20 and 30 Carver Road, consisting of nine (9) parcels of land totaling 2.32 +/- acres, owned by Faithwork LLC and Paul Davis and Justine J. Davis (Paul and Justine Davis Revocable Trust). (Tax Parcels: ED-05-076.07-01-62.00-000, ED-05-076.07-01-37.00-000, ED-05-076.07-01-36.00-000, ED-05-076.07-01-35.00-000, ED-05-076.07-01-34.00-000, ED-05-076.07-01-38.00-000, ED-05-076.07-01-39.00-000, ED-05-076.07-01-61.00-000, and ED-05-076.07-01-60.00-000; Planning Reference: Z-18-03; Council District 4) ADOPTED: DECEMBER 10, 2018 ECONOMIC DEVELOPMENT COMMITTEE REPORT - OCTOBER 9, 2018 The Economic Development Committee met on October 9, 2018 at 4:49 p.m. with Mayor Christiansen presiding. Members present were Mr. Hare, Mr. Cole, Mrs. Mitchell, Mr. Hugg, Ms. Laird, Mrs. Adams (arrived at 4:52 p.m.), and Mr. Hammond. Update - Federal Opportunity Zone Program (Patricia Cannon, State Division of Small Business) Ms. Patricia Cannon, Director of Special Projects at the Department of State Division of Small Business, provided members with information regarding the Federal Opportunity Zone Program. She explained that Opportunity Zones are an economic development tool designed as revitalization programs in economically-distressed communities in Delaware and in other communities by providing tax benefits to investors. Ms. Cannon informed members that the Governor nominated 25 census tracts as Opportunity Zones in Delaware and they were designated by the U.S. Department of Treasury. She stated that the Governor wanted staff to start and build around the Downtown Development Districts because that initiative is already underway and entices investors to invest in those specifically targeted areas. Ms. Cannon noted that since the Opportunity Zone Program is a federal program it offers stackable tax credits and incentives, explaining that investors could potentially qualify for a downtown development incentive, a historical tax credit, a low income tax credit, and an Opportunity Zone tax benefit. She stated that it’s now a matter of trying to get investors to invest in Delaware, so the Department of State Division of Small Business has been tasked with developing presentations for the Governor to tell the Delaware story. Ms. Cannon advised members that she needs Dover to come up with specific projects that will entice investors to invest in the Downtown Dover District. Mrs. Mitchell asked if the City is eligible for the funding since it is tax exempt. Responding, Ms. Cannon stated that she believed so. She stated that she was not a lawyer, however, it was her understanding that the City would create the fund and if the City owned a piece of property it could donate the property to the fund, and the current value of the property would be the value of the investment. Then you renovate the property and sell it for five times what you paid for it. Since the City is tax exempt, it will get the revenue and not pay any tax anyway but if the City had

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 9 a partner in the fund who was not tax exempt, they would get the profits if they left them in the fund for 10 years and would not have to pay the capital gains tax. Mr. Hugg noted that one of the keys to this program is setting up an Opportunity Zone fund prior to making an investment a project. He stated that City staff had reached out to some of the known potential investors in Dover to advise them to talk to their tax attorneys and accounts about this program. He informed members that virtually all of the downtown and west side of Dover are in the distressed census tract and eligible for these types of projects, and it is important for members to add this program to their repertoire of talking points, especially when talking with potential developers. Responding to Mr. Hammond, Ms. Cannon stated that it this program does incorporate residential housing and commercial development. She explained that it is their ideal that it really touches all aspects. Ms. Cannon advised that there is a real sense of urgency to identify shovel-ready projects because the law requires investments to be made by December 31, 2019. She stated that a member of Congress had already tried to pass a bill to renew the program and to be able to assign new census tracts in 10 years, however, it is currently a fixed law. Mr. Cole asked if the City qualified for the program and moved forward on a project, would the City then be responsible for any outlays in the next fiscal year. In response, Mrs. Mitchell stated her understanding was that it sounded like the outlays would be coming from the fund. As she understood it, the fund would be setup with its own set of guidelines and the City would have to follow those guidelines. Mr. Hugg noted that Ms. Cannon is also the City’s contact for Foreign Trade Zone designation and there have been discussions regarding whether any part of the Garrison Tract might be eligible for and whether it might make sense or not to look into a Foreign Trade Zone designation. Mayor Christiansen asked whether consideration had also been given to the eligibility for the Kent Aero Park on Horse Pond Road to be designated as a Foreign Trade Zone. Responding, Mr. Hugg noted that it was a good question and indicated that he thought it would be eligible. Ms. Cannon advised members that a couple of years ago Delaware was the first state in the country to be approved as an alternative site framework. She explained that prior to that a Foreign Trade Zone had to be the point of entry, which in Delaware meant the Port of Wilmington or a contiguous site to that port. Ms. Cannon stated that with the alternative site framework the entire state of Delaware is considered contiguous to the port, so any parcel is eligible.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 10 Ms. Cannon noted that the State uses an attorney located in Kansas City, Missouri, explaining that there are two (2) law firms in the United States who specialize in Foreign Trade Zones and they use the same one that John Pastor has used since 1986. She advised that he was planning to come to Delaware on October 30 for a meeting with Sussex County regarding their airport, and if the City would like, she would be happy to schedule some time to stop in Dover for staff to explore some ideas with him. Ms. Cannon noted that the funds collected for that are restricted federal funds that she can only use to market the Foreign Trade Zone, so she can pay him to come and answer questions if that would be helpful. Update - Draft 2019 Comprehensive Plan, Chapter 10 - Economic Development Mr. Dave Hugg, Director of Planning and Community Development, reviewed Chapter 10: Economic Development Plan, Goals, Recommendations and Actions - Preliminary Review Draft, dated October 5, 2018, explaining that the Draft 2019 Comprehensive Plan would be issued in its entirety for public comment and ultimately submitted to Council and the Planning Commission for consideration and approval. He stated that he was looking for input or feedback, so that everyone is on the same page and the City has a sound and cohesive economic development planning strategy for the next 10 years. Mayor Christiansen asked members to review the Goals and Recommendations for discussion during the Economic Development Committee meeting scheduled for November 14, 2018. Ms. Adams noted that Goal 8 - Promote inclusive workforce development programs, strategies and partnerships, especially for disadvantaged groups, was one of the most important to her. She explained that you have to have the workforce to support businesses before you can bring businesses here. Ms. Adams advised that she struggles with having the workforce to support her business. She noted that she is a hub zone company for Downtown Dover and she wouldn’t dare move her business right now because the hub zone areas are shrinking. Mr. Hammond stated that he thought the Goals and Recommendations were very comprehensive, especially in regard to healthy living, noting that there are some major issues regarding healthy living and quality of life in the Dover community. Report - Site Tour for Kent Economic Partnership (KEP) and Delaware Prosperity Partnership (DPP) Mr. Dave Hugg, Director of Planning and Community Development, advised members that Ms. Linda Parkowski, Executive Director of the Kent Economic Partnership (KEP), and Mr. Kurt Foreman, CEO of Delaware Prosperity Partnership (DPP), requested a tour of available properties in Dover. He stated that as they toured Dover, they tried to identify a number of possible industrial or manufacturing sites that might be attractive to market. Mr. Hugg provided an overview of the 11 areas identified, as depicted on the Dover Industrial Tour: Area Overview map.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 11 Ms. Parkowski advised members that she had toured the County and Mr. Hugg had provided one of the best tours. She stated that she received a nice booklet, all of the properties were really well defined, and she learned a lot. Ms. Parkowski noted that since starting her job with KEP, she had discovered that all of the really developable properties are in the municipalities of Dover, Smyrna, Milford, and Harrington; the County really doesn’t have that much land of their own that is available for commercial or industrial development. She stated that most of the economic development that KEP is going to do will be in conjunction with the municipalities and they have been working toward that. Ms. Parkowski provided members with an update regarding the Air Cargo Ramp/Civil Air Terminal, noting that the 50-year use agreement was close to being signed. She advised that it was pending an environmental assessment because they increased the numbers of take offs and landings. Ms. Parkowski expressed KEP’s appreciation for the City doing its part by designating a new zoning classification. She stated that KEP would like to see that entire area master planned. Ms. Parkowski noted that one of the targeted industries for the County from the economic analysis study was warehouse and distribution and KEP thinks that warehousing distribution goes really well with air cargo. She stated that while they are waiting on the completion of the environmental assessment, the Delaware Department of Transportation (DelDOT) and KEP have been bringing in site selectors, aviation consultants, and people who deal with air cargo logistics to have them assess the site. In addition, they are trying to find consultants who can find an investor or developer that would take on this project. Ms. Parkowski advised members that, in its Comprehensive Plan, the County had designated Employment Zones for future land use strategy. She stated that it had designated one as the Aero Park on Horse Pond Road and another in the area of the Little Heaven Interchange. Ms. Parkowski informed members that the County Planning Office was working on developing ordinances for those Employment Zones and planned to have an ordinance available for public workshops on October 29 and 30, 2018 for the South Fred Interchange. She stated that they had not designated the area around DE Turf as an Employment Zone, however, it is targeted for rezoning in the future land use strategy. Ms. Parkowski advised that the KEP was waiting to review the ordinance to see what the allowable uses will be, however, she noted that it was very good that the County identified jobs and economic development as key factors in its Comprehensive Plan. She stated that the Employment Zone designation is looking to the future and will be helpful to the KEP as it moves forward. By consent agenda, Mr. Neil moved for acceptance of the Economic Development Committee Report, seconded by Mr. Lindell and carried by a unanimous roll call vote.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 12 ECONOMIC DEVELOPMENT COMMITTEE REPORT - NOVEMBER 14, 2018 The Economic Development Committee met on November 14, 2018 at 4:32 p.m. with Mayor Christiansen presiding. Members present were Mr. Hare, Mr. Cole, Mrs. Mitchell, Mr. Hugg, Ms. Laird, and Mrs. Adams. Mr. Hammond was absent. Draft 2019 Comprehensive Plan, Chapter 10 - Economic Development Plan During their meeting of October 9, 2018, members reviewed Chapter 10: Economic Development Plan, Goals, Recommendations and Actions - Preliminary Review Draft, dated October 5, 2018. Mr. Dave Hugg, Director of Planning and Community Development, advised that staff’s deadline was to complete the 2019 Draft Comprehensive Plan before the end of the year and asked members to submit their input regarding Chapter 10 as soon as possible. He noted that this would not be the only opportunity for them to provide input because the entire preliminary document would be presented to City Council and the Planning Commission for approval prior to submission to the State for certification. Mr. Hugg noted that since the Committee reviewed Chapter 10 in October, all of the recommendations had been circulated to City staff for their input and several questions and suggestions were received. He stated that Mrs. Donna Mitchell, City Manager, had raised some questions regarding Goal 1, Recommendation 2 - Develop Effective Protocols for Business Attraction and Retention, and Goal 5, Recommendation 11 - Encourage the use of Garrison Oak as a potential site for green, alternative and low-carbon energy plant(s), and for large technological and manufacturing firms that support these industries. Mr. Hugg explained that Goal 1, Recommendation 2 deals with clarifying the point of contact for economic development and developing protocols for managing City facilities, like Garrison Oak Technical Park. He noted that she thought that the City should resolve those issues prior to issuing the Comprehensive Plan, rather than including them as recommendations. In regard to Goal 5, Recommendation 11, Mr. Hugg stated that Mrs. Mitchell questioned whether encouraging the use of Garrison Oak as a potential site for green, alternative and low-carbon energy plant(s), and for large technological and manufacturing firms that support these industries might unduly limit the City’s ability to market it for various types of uses. He indicated that he agreed, and that the City needed to be careful not to limit itself, particularly since the City was in the process of trying to redefine the Park and develop a marketing strategy. Mr. Hugg stated that in regard to Goal 8, Recommendation 15 - Support the development of workforce development programs, strategies and partnerships that increase training and employment opportunities for all residents, especially for youth and young adults, and for low income, communities of color, people with disabilities, ex-offenders, and others that face economic injustices and barriers to employment, Mrs. Mitchell advised that she was currently working on this for City recruitment and

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 13 staffing and had met with the school districts. He noted that he thought that the Comprehensive Plan simply needed to reference that point. Mr. Hugg informed members that Mr. Jim Robinson, Electric Director, also submitted a comment regarding Chapter 10. Mr. Robinson suggested the inclusion of a recommendation related to Smart City initiatives. Mayor Christiansen asked whether Mr. Hugg was seeking endorsement of the concepts from the Committee. Responding, Mr. Hugg stated that endorsement would be great, with the understanding that any endorsement is not binding, it is simply to move forward with the process. He indicated that his primary goal was to determine if members had any concerns or suggestions with the draft Goals and Recommendations. Mr. Cole moved to recommend that staff move forward with Chapter 10 of the Draft Comprehensive Plan, with the inclusion of the recommendations of Mrs. Donna Mitchell, City Manager, and Mr. Jim Robinson, Electric Director, seconded by Mrs. Mitchell. Mr. Hare, referring to the first bullet point under Goal 1, Recommendation 2, noted that “point-of-contract” should be changed to “point-of-contact.” Responding to Mrs. Mitchell, Mr. Hugg stated that there is opportunity for unofficial and official public comment. He advised that the Draft Goals and Recommendations were circulated to several stakeholders, including the Kent Economic Partnership of Greater Delaware, the Chamber of Commerce. Mr. Hugg explained that the next step will be to put together the first draft of the preliminary Plan which will be issued for public review and comment, followed by a presentation of a preliminary draft Plan to Council and the Planning Commission, further opportunity for public review, and then back to Council and Planning Commission for approval. Mr. Hare asked if the City was involved with the County in Goal 8, Recommendation 15 - Support the development of workforce development programs, strategies and partnerships that increase training and employment opportunities for all residents, especially for youth and young adults, and for low income, communities of color, people with disabilities, ex-offenders, and others that face economic injustices and barriers to employment. He noted that a recent newspaper article questioned what the City was doing for the homeless, and he wondered what the County was doing. Mr. Hare stated that he did not think that it should all on the City, and he would like to see the County have a stake in it as well. Responding, Mr. Hugg stated that he did not know what the County was doing with regard to workforce development, however, he had met with the County regarding the Comprehensive Plan review and this may be a point that the City wants to address with them. He noted that the County adopted its Comprehensive Plan about a month ago; however, he could not recall whether they address this topic. Mayor Christiansen advised that the County Comprehensive Plan had been certified by the Governor.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 14 In regard to workforce development programs, Mr. Hugg advised that City staff is working very closely with the four (4) institutions of higher education in Dover, particularly DelTech, to try to match the economic trends and opportunities in Dover with the opportunities for people to be trained and educated for the jobs of the future. He stated that this was an issue that he knew Wilmington University had thought about for their programs in Dover, noting that they’re doing a lot with information technology and data analytics. Mr. Hugg stated that these programs are aimed at ensuring that there are jobs in Dover or Kent County for Delaware graduates. Mayor Christiansen noted that the Kent Economic Partnership (KEP) has a Workforce Development Committee in place under the leadership of Executive Director Linda Parkowski. He stated that the Committee is fully funded, partially by Kent County. Mayor Christiansen suggested that the City coattail on the KEP. Mr. Hugg stated that he would take another look at this recommendation and the efforts of the KEP. Mrs. Mitchell expressed concern with multiple committees, organizations, and agencies doing the same things. She stated that if KEP was taking on the charge of workforce development, the City should let them handle it. Mayor Christiansen stated that he agreed with Mrs. Mitchell, noting that the City makes a substantial contribution to the KEP too. Mayor Christiansen asked if it was the recommendation of the Committee to strike Goal 8, Recommendation 15 from Chapter 10 of the Comprehensive Plan. Responding, Mr. Hare stated that he did not think that the City should be investing time and employee efforts to duplicate the work of the KEP. Mr. Cole stated that he agreed but indicated that he did not think the City wanted to lose the overall goal and suggested rewording it instead. Mr. Hugg stated that he will review what KEP is doing, and reexamine this goal and recommendation to make sure it is reflective of members’ comments and what the county is proposing. Mayor Christiansen reminded members that the City is involved since there are City representatives on the KEP Board as well as the Greater Kent Committee, both of which are working on these goals. He indicated that he thought that the City should let them handle this matter. Mr. Hare suggested rewording the recommendation to reflect that the KEP is the leader and the City will support their efforts. Responding to Mayor Christiansen, Mr. Cole and Mrs. Mitchell agreed to amend the motion to reflect that the draft language be brought back to the Economic Development Committee. The Committee recommended continuing forward with the current verbiage with the caveat that they have concerns, and that staff bring the draft language back to the Economic Development Committee meeting on January 15, 2019. By consent agenda, Mr. Neil moved for approval of the Committee’s recommendation, seconded by Mr. Lindell and carried by a unanimous roll call vote.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 15 Proposed Resolution No. 2018-12 Proposing to Change the Name of Garrison Oak Technical Park to Garrison Oak Business and Technology Center Mr. Dave Hugg, Director of Planning and Community Development, reviewed Proposed Resolution No. 2018-12, explaining that changing the name of Garrison Oak Technical Park to Garrison Oak Business and Technology Center would broaden the scope to appeal to different types of businesses that may want to purchase or lease property within the Park. The Committee recommended adoption of Proposed Resolution No. 2018-12. By consent agenda, Mr. Neil moved for approval of the Committee’s recommendation. The motion was seconded by Mr. Lindell and, by a unanimous roll call vote, Resolution No. 2018-12 was adopted, as follows: A RESOLUTION PROPOSING TO CHANGE THE NAME OF THE GARRISON OAK TECHNICAL PARK TO GARRISON OAK BUSINESS AND TECHNOLOGY CENTER WHEREAS, the City of Dover acquired the property known as the “Garrison Tract” in 1999 for purposes of creating jobs and providing economic stability, and WHEREAS, the State of Delaware provided funds from the FY 2000 Capital Improvements Act (Bond Bill) in the amount of $2,000,000 to facilitate the site acquisition with the provision that the site be used as a high-technology industrial park, and the site was designated as the “Garrison Oak Technical Park” and marketed as such, and WHEREAS, in accordance with epilogue language for the FY 2000 Bond Bill, a Memorandum of Understanding was executed between the City of Dover, Kent County and the State of Delaware setting forth various commitments regarding the responsibilities of each party. One condition contained in the epilogue language identified the types of business to be targeted, such designation to be in effect until January 1, 2010, after which the limitation can be altered by mutual agreement of the City of Dover and the Delaware Economic Development Office (DEDO), and WHEREAS, the City of Dover now desires to expand the purpose and nature of the Garrison Oak Technical Park to reflect current business conditions and the changing marketplace, therefore improving its marketability, and the Delaware Secretary of State has determined that with the elimination of DEDO, no State approval of the name change is required. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dover hereby directs the Mayor to take necessary actions to cause the name to be changed to Garrison Oak Business and Technology Center and market the Center to prospective businesses in cooperation with the Kent Economic Partnership and the Delaware Prosperity Program. ADOPTED: DECEMBER 10, 2018 Mr. Hugg provided members with an update on the County’s employment zone discussions related to the Central DE Aviation Complex (CDAC), located north of

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 16 the existing Kent County Aero Park and Civil Air Terminal. He advised that the purpose of the employment zones is to promote business, industrial, and non retail commercial kinds of activities. Mr. Hugg noted that the ongoing discussions with Dover Air Force Base regarding the renewal of the Joint Use Agreement seem to be close to preliminary approval, and that agreement would provide a 50-year joint operations agreement that would allow commercial aviation to use Dover Air Force Base as an air terminal with facilities being built on the Aero Park and adjacent properties for aviation and related kinds of uses. He reminded members that the City amended the zoning ordinances to allow an aviation and aeronautics-based industrial zone. Mr. Hugg reviewed a document entitled “Central DE Aviation Complex (CDAC)”, noting that the map on the left indicated the area already included within City limits and the County was suggesting that the area to the north be annexed into the City and managed and developed under City rules and regulations in the RPM3 zoning classification. He indicated that the County would like to designate the entire area as the Center Delaware Aviation Complex or something similar. Mr. Hugg advised that this would include a couple hundred acres of property south of South Little Creek Road and would be tax rateable. He informed members that there was one use proposed to the County for this area; however, that use would not be permitted in the City. He stated that the City did not officially object, but made it known to the County that it could be an impediment to carrying forward this kind of activity. He stated that he did not know whether this was the influence, but the County Regional Planning Commission voted seven (7) to zero (0) to deny that use. By consent agenda, Mr. Neil moved for acceptance of the Economic Development Committee Report, seconded by Mr. Lindell and carried by a unanimous roll call vote. CO UNCI L COMMI T T E E O F T H E W H O L E R EPO RT - NOVEMBER 14, 2018 The Council Committee of the Whole met on November 14, 2018 at 6:02 p.m., with Councilman Hare presiding in the absence of Council President Slavin. Members of Council present were Mr. Sudler (departed at 6:58 p.m.), Mr. Neil, Mr. Lewis, Mr. Cole, Mr. Polce (departed at 6:58 p.m.), and Mr. Lindell (departed at 6:14 p.m., and returned at 6:15 p.m.). Mr. Anderson was absent. Mayor Christiansen was also present (departed at 7:01 p.m.). Civilian members present for their Committee meetings were Mr. Caldwell and Dr. Warfield (Parks, Recreation, and Community Enhancement), and Mr. Shevock (Legislative, Finance, and Administration). Mr. Garfinkel and Mr. Shelton (Safety Advisory and Transportation), Mrs. Doyle and Ms. Scarborough (Utility) were absent. COUNCIL COMMITTEE OF THE WHOLE (All Members of All Committees) The Council Committee of the Whole met with Councilman Hare presiding in the absence of Council President Slavin.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 17 Update on the Comprehensive Plan Project Mr. David Hugg, Director of Planning and Community Development, and Mrs. Dawn Melson-Williams, Principal Planner, reviewed a presentation entitled “City of Dover, Delaware, 2019 Comprehensive Plan, Project Update October 2018” and the Preliminary Draft Goals and Recommendations for the 2019 Dover Comprehensive Plan. Mr. Polce expressed his appreciation that there was one single voice used throughout the document. He noted that he had paid particular attention to the Economic Development and Housing and Community Development sections, and thought that a majority of the goals in the Economic Development section were spot-on. Referring to Economic Development Goal 9 - Promote the revitalization and redevelopment of the Center City, Mr. Polce indicated that he would like the City to incorporate the word “enterprise zones.” He explained that he thought it was important for the City to be more innovative and that it was critical to success that members think of things like enterprise zones when incentivizing private development through federal, state, and local tax reimbursements. Mr. Polce stated that he was very happy to see that the City was linking the plan for health in all of the work related to Housing and Community Development. He explained that he thought that it was important that the City was looking at how health and housing are combined and how socioeconomic status and demography impact health and quality health outcomes. Mr. Polce expressed his appreciation that staff captured those points. Responding to Mr. Sudler, Mayor Christiansen stated that the Economic Development Committee (EDC) reviewed the draft Economic Development section of the Plan and made some recommendations during their meeting of November 14, 2018. He noted that they discussed partnering with the County and Kent Economic Partnership regarding workforce development. Mr. Sudler asked when the Comprehensive Plan would most likely be ready. In response, Mrs. Melson-Williams stated that they set a goal to have an initial draft for most of the plan chapters completed by early December, and anticipate that a draft plan will be issued in January or February for review by the PLUS process and Planning Commission. She informed members that PLUS is the State agency review process that compares the City’s document to the checklist of requirements for comprehensive plans. Mrs. Melson-Williams explained that once the draft plan is issued, it becomes a public document and begins the formal review process. She stated that staff wants to ensure that they are putting out the best product to start the process, noting that it is a lot more complicated to rearrange and rewrite whole sections once the draft is issued. Mrs. Melson-Williams advised that staff is on track to have the final document completed before summer 2019. Mr. Hugg requested members of Council to provide their input prior to the Christmas holiday.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 18 Mr. Neil complimented staff on the proposed name change for Garrison Oak Technical Park and requested that they consider a foreign zone. Mr. Hare suggested providing the draft to Council during their Retreat in January. Responding, Mrs. Melson-Williams stated that staff could certainly aim for that, explaining that it is always better to have a general endorsement of the document before it is submitted to PLUS. She noted that the goals and recommendations are a big piece of the document, and the chapters contain a lot of the background information. Mr. Hugg stated that he thought that the Plan would be an ideal document to have for the Council Retreat since it touches so much of what the City does and what they hope to achieve. He advised that staff would certainly have the document in a form that Council could review during their Retreat, even if it is preliminary. SAFETY ADVISORY AND TRANSPORTATION COMMITTEE The Safety Advisory and Transportation Committee met with Chairman Lewis presiding. Proposed Ordinance #2018-12 Amending Chapter 70 - Offenses and Miscellaneous Provisions, Section - 70-5 Aggressive Panhandling and Appendix F - Fees and Fines (Sponsors: Hare and Polce) The committee deferred this item during their meeting of October 23, 2018. Mr. Polce explained that Proposed Ordinance #2018-12 was developed in response to some of the concerns regarding ongoing panhandling, not only in the downtown community but at many of the City’s local restaurants and businesses, most often gas stations. He indicated that Council will have some very critical decisions to make in the coming months regarding big projects that will redefine the way the City does business and, in order to do that, members must ensure that the community is safe and that the perception is that the community is safe. Mr. Polce reviewed Proposed Ordinance #2018-12, explaining that it is rooted in Title 11 - Crimes and Criminal Procedure of the Delaware State Code. He stated that the ultimate goal is to provide the City’s police with more discretion in these matters, in order to reduce panhandling. Mr. Polce noted that it would also ensure that panhandlers are aware that the City is proactively engaging the community in saying “you can’t continue to harass patrons.” He explained that this would provide an opportunity for the police to meet panhandlers without automatically arresting them. Mr. Polce stated that there were probably a number of underlying issues within the panhandling community, ranging from mental illness to substance use disorder to homelessness. He advised that this would provide a tool to engage the community. Mr. Polce informed members that he previously discussed this matter with Police Chief Marvin Mailey, who had raised warranted concerns, and he assured him that he would not force the ordinance through the process without proper consultation

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 19 from the Police Department. Mr. Polce noted that the Police Department does a tremendous amount of work with very little resources and one of the major issues is that the City continues to ask the Department to do more without really considering their resources and how resources are continuing to be expanded without having proper funding. Police Chief Marvin Mailey stated that he understood that Mr. Polce was trying to do what he perceived was in the best interest of the City; however, the Police Department was opposed to Proposed Ordinance #2018-12 for many reasons. He advised that 11 Del. C. §1321 states that “a person is guilty of loitering when the person loiters, remains or wanders about in a public place for the purpose of begging” or there are other mitigating factors that deal with other criminal acts, so to allow loitering in certain locations between certain times would be in conflict with the Delaware Code. Chief Mailey stated that he also reached out to Mr. Steve Wells, the head prosecutor for Kent County, who advised that he is not aware of any legislation change or any alteration to the law that would allow for panhandling. Chief Mailey advised members that police officers take an oath to uphold the U.S., federal, state, and local laws and it causes problems when an officer is put in a situation where he has opposing directions. He stated that he understands that the intent of the Proposed Ordinance is to give officers more leeway; however, he explained that officers have leeway in the fact that when they typically contact a panhandler, they will ask them to move on and after that they can progress from a warning all the way to an arrest. Additionally, Chief Mailey advised that managing the permits and tracking the violations would be taxing on their already strained resources. He also noted that panhandling is one of the top five problems that he hears about at civic association meetings, town hall meetings, and from homeowner associations. Chief Mailey expressed concern that the City might assume some liability if they allow panhandling and then someone is hurt, harmed, injured, or a victim of a crime as a result of them opening their wallet to give someone money. Responding to Mr. Lindell, Chief Mailey stated that alternatives to the legislation would be verbal warnings and departmental focus on problem areas. Chief Mailey discussed at length staffing in the downtown area to improve safety. The Committee tabled consideration of Proposed Ordinance #2018-12. LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE The Legislative, Finance, and Administration Committee met with Chairman Hare presiding.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 20 Evaluation of Proposals - Diversity and Inclusion Study Mrs. Donna Mitchell, City Manager, reviewed the background and analysis regarding the evaluation of proposals for the Diversity and Inclusion Study. She noted that this was requested by Council last year and a budget amendment was completed last fiscal year for $90,000. Mrs. Mitchell stated that staff recommended approval of the award to Ivy Planning Group for up to $45,000 plus travel costs; therefore, she was only proposing to carry-forward $50,000 from FY 2018-2019 and this was included in the Project Carry-Forward Budget Balances and Proposed Ordinance #2018-13 - 2018-2019 Budget Ordinances - First Amendment item scheduled for consideration during the latter part of the meeting. Mr. Hare asked how this study would differ from the study previously completed by Delaware State University. Responding, Mrs. Mitchell stated that she could not recall whether Delaware State University had completed a diversity study for the City in the past; however, the City did reach out to them the first time the Request for Proposals (RFP) was done. The Committee recommended approval of the award to Ivy Planning Group for up to $45,000 plus travel costs, as recommended by staff. By consent agenda, Mr. Neil moved for approval of the Committee’s recommendation, seconded by Mr. Lindell and carried by a unanimous roll call vote. Annual Review of Investment Policy Mrs. Donna Mitchell, City Manager, advised members that the City’s Investment Policy Statement is scheduled for annual review. She stated that staff did not have any recommended changes to the Policy. Responding to Mr. Neil, Mrs. Mitchell advised that the City is making money. The Committee recommended approval of the City of Dover, DE Investment Policy Statement, as presented. By consent agenda, Mr. Neil moved for approval of the City of Dover, DE Investment Policy Statement, as presented (Exhibit #2). The motion was seconded by Mr. Lindell and carried by a unanimous roll call vote. Project Carry-Forward Budget Balances and Proposed Ordinance #2018-13 - 2018-2019 Budget Ordinances - First Amendment Mrs. Donna Mitchell, City Manager, reviewed the project carry-forward budget balances and Proposed Ordinance #2018-13 - 2018-2019 Budget Ordinances - First Amendment. She stated that this is the first budget amendment for FY 2018-2019 from the carry-forward balances from last fiscal year. Mrs. Mitchell explained that the adjustments primarily reflect the budget balances carried forward for multi-year projects. She advised that there were also two (2) operational items: $50,000 for the

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 21 diversity study, and $50,000 for Fleet Maintenance for police vehicle parts and materials. Mrs. Mitchell explained that Fleet Maintenance was now servicing the police vehicles instead of utilizing an outside automotive firm. Mrs. Mitchell stated that the proposed total carry-forward budget balance adjustment was $6,572,000. Staff recommended approval of the proposed budget amendments totaling $6,572,000 for fiscal year 2019. The Committee recommended approval of the proposed budget amendments totaling $6,572,000 for fiscal year 2019 and adoption of Ordinance #2018-13, as recommended by staff. By consent agenda, Mr. Neil moved for approval of the Committee’s recommendation, seconded by Mr. Lindell and carried by a unanimous roll call vote. (The First Reading of Ordinance #2018-13 will take place during the latter part of the meeting). By consent agenda, Mr. Neil moved for acceptance of the Council Committee of the Whole Report, seconded by Mr. Lindell and carried by a unanimous roll call vote. MONTHLY REPORTS - OCTOBER 2018 By motion of Mr. Neil, seconded by Mr. Lindell, the following monthly reports were accepted by consent agenda: City Assessor's Report City Council’s Community Enhancement Fund Report City Manager's Report City Planner's Report Fire Chief's Report Police Chief's Report REAPPOINTMENTS RECOMMENDED BY MAYOR CHRISTIANSEN - BOARD OF ADJUSTMENT - THREE-YEAR TERMS Mayor Christiansen recommended the following reappointments to the Board of Adjustment: Arthur G. Ericson - term to expire July 2020 James N. Keller - term to expire July 2021 Mr. Lewis stated that he received a phone call from a concerned citizen who had indicated they had concerns because of the reappointments not being made within a certain timeframe. He noted that these reappointments were due in July of this year. Mr. Lewis asked if the City would be held liable for any legalities on decisions that were made between July and now, as far as Board of Adjustment meetings. Responding, Mr. Slavin advised that legal counsel was looking into it.

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 22 Mr. Lewis moved to table the reappointments until they receive a legal opinion with respect to the matter. City Solicitor Rodriguez advised that none of the Board’s decisions were controversial nor contested and the appeal period has expired. He stated that he attends all of the Board of Adjustment meetings and he is confident that there is no liability on the part of the City. Mr. Rodriguez advised that they have a very important Board of Adjustment meeting the following week and it is preferable to have the members reappointed before that meeting. Mr. Neil moved for approval of the reappointments to the Board of Adjustment, as recommended by Mayor Christiansen. The motion was seconded by Mr. Lindell and carried by a roll call vote of eight (8) yes (Anderson, Sudler, Neil, Cole, Polce, Hare, Lindell, and Slavin) and one (1) abstention (Lewis). ELECTION OF OFFICERS - ROBBINS HOSE COMPANY - YEAR 2019 FIRE LINE OFFICERS The Fire Line Officers of the Robbins Hose Company are elected annually on the third Monday of November. Members were provided the results from the November 19, 2018 Robbins Hose Company Election for consideration as follows: Fire Chief - Ronald W. Rhodes, Sr. Deputy Fire Chief - Michael J. O'Connor, Jr. First Assistant Fire Chief - Cole R. Enright Second Assistant Fire Chief - Benjamin P. Smetana Third Assistant Fire Chief - Michael J. Morris Fourth Assistant Fire Chief - Christopher W. Jacobs First Fire Line Captain - Michael D. Nitsch Second Fire Line Captain - Wesley T. Liberto By consent agenda, Mr. Neil moved for acceptance of the Fire Line Officers for Robbins Hose Company No. 1 for the Year 2019, as submitted, seconded by Mr. Lindell and carried by a unanimous roll call vote. FIRST READING - PROPOSED ORDINANCE #2018-13 Council President Slavin reminded the public that copies of the proposed ordinance were available at the entrance of the Council Chambers, on the City's website at www.cityofdover.com under "Government," or by contacting the City Clerk's Office at 736-7008 or cityclerk@dover.de.us. Final action by Council on the proposed ordinance will take place during the Council Meeting of January 14, 2019. 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 #2018-13 - 2018-2019 BUDGET ORDINANCES - FIRST AMENDMENT

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 23 CITY MANAGER'S ANNOUNCEMENTS Mrs. Donna Mitchell, City Manager, advised that leaf collection was underway and would conclude on January 11th. She noted that they were behind because of the volume; however, the entire street department is working on collecting leaves and the grounds crew would be cleaning the catch basins. Mrs. Mitchell encouraged everyone to go out and see the Christmas lights. She stated that the City looks very pretty this time of year, and the lights on the lake are exceptional. Mrs. Mitchell also advised that there are lights on the top of the power plant, which looks very nice. COUNCIL MEMBERS' ANNOUNCEMENTS Mr. Sudler thanked Mrs. Donna Mitchell, City Manager, for her warm season's greetings. Mr. Neil wished everyone a happy and safe holiday season and, particularly, the Beth Shalom Congregation for inviting him to their Hanukkah dinner service, and latke, which is a potato pancake, tasting contest the previous Friday. Mr. Slavin wished Mr. Lewis a happy birthday on December 23rd. Mr. Lewis wished everybody a merry Christmas and a happy Hanukkah. He shared his favorite quote by Winston Churchill: “We make a living by what we get, and we make a life by what we give.” Mr. Anderson wished everyone a merry Christmas and a happy Hanukkah. He also congratulated Councilman Lewis (on his election as Kent County Sheriff) and stated that they were proud of him and the work that he had done and will do. Mr. Anderson noted that he looked forward to supporting the next phase of Mr. Lewis’ endeavors and thanked him for the dedication and the work that he had done on City Council and his commitment to the community. Mr. Sudler moved for adjournment, seconded by Mr. Lewis and unanimously carried. Meeting adjourned at 8:25 p.m. TRACI A. McDOWELL CITY CLERK

CITY COUNCIL MEETING OF DECEMBER 10, 2018 PAGE 24 All ordinances, resolutions, motions, and orders adopted by City Council during their Regular Meeting of December 10, 2018, are hereby approved. ROBIN R. CHRISTIANSEN MAYOR /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Council-Minutes\2018\12-10-2018 Council Minutes.wpd Exhibits Exhibit #1 - Presentation - Violation of Dangerous Building Ordinance - 350 Martin Street Exhibit #2 - Investment Policy Statement

EXHIBIT #1 Regular Council Meeting of 12/10/2018 Violation of Dangerous Building Ordinance 350 Martin Street Planning & Inspections Department Dover, Delaware December 10, 2018

350 Martin Case History  13 code enforcement cases since 2013  Numerous interior violations – Grass violations  Vehicles parked in the yard – Junk and Debris  Was being operated as a rooming house  The utilities were terminated on May 27, 2014  Registered as vacant by the city on September 9, 2014  Condemned as unfit for human occupancy on May 27, 2014

350 Martin Street Outstanding Fees  Taxes $1,376.38  VBO Registration Fees $7,500.00  Water/Sewer $2,782.95  Utilities Location #5550 $1,177.19  Utilities Location #42716 $533.14

350 Martin Street Current Condition  Extreme fire damage through-out the home. With damage to walls, ceilings, windows, doors, siding and roof.  There is damage to structural members of the dwelling which has caused partial collapse of the roof.

Dangerous Building Code – Chapter 22 Article XI, Sec. 22-381 (4) Fire damage, etc. (5) Unfit for habitation. (9) General Welfare.

Recommended Council Action  Declare this building and all accessory structures on this property dangerous.  Order the property demolished by December 26, 2018 by the owner or equity owner at their own risk.  Order the Fire Marshal and Chief Code Enforcement Officer to cause the demolition of the structures 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 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.

EXHIBIT #2 Regular Council Meeting of 12/10/2018 City of Dover, DE Investment Policy Statement Dated October 23, 2018

1.0 Governing Authority It is the policy of the City of Dover to invest public funds under its control in a manner that will provide the highest investment return consistent with the maximum safety of principal, while meeting cash flow needs of the City. The investment program shall conform to all state and local statutes governing the investment of public funds. 2.0 Scope This Investment Policy Statement (the “Policy”) applies to all financial assets of the City of Dover for which the City retains direct or indirect daily control. Funds for which the City has retained outside fund manager(s) shall also be governed by this Policy or, in the case of bond proceeds, related governing bond documents. 2.1 Accounts 2.1.1 Cash and Liquidity Accounts: The majority of the City’s cash balance available for investment is maintained in the cash and liquidity accounts. These accounts will be managed and invested by investment managers, selected by the City Council through competitive bid, in order to maximize the return to the City while, at the same time, providing for safety of principal and sufficient liquidity for the City to meet its cash needs. The City will manage its short-term investments to ensure sufficient liquidity and prevent their premature sale for the purpose of covering expenditures. Short-term investments should mature at face value in sufficient amounts to meet any liquidity needs. 2.1.2 Reserve Cash (Intermediate) Account: To the extent cash is not expected to be needed on short notice, the City shall invest such funds in the Reserve Cash Account. This fund shall be managed and invested by an investment manager or managers, selected by the City Council after a competitive bid, in order to maximize the return on said money to the City while providing for the safety of principal. All of the City of Dover’s funds are accounted for in its Comprehensive Annual Financial Report. Those funds to which this Policy applies include (excluding the Deferred Compensation Plan and Pension Trusts): 2.2 Funds 2.2.1 General Fund 2.2.2 Capital Project Funds 2.2.3 Special Revenue Funds 2.2.4 Enterprise Funds 2.2.5 Internal Service Funds 2.2.6 Any new fund created by the City Council, unless specifically exempted 3.0 Objectives The primary objectives of the City of Dover’s investment activities, in order of importance shall be: Investment Policy Page 2 of 15

3.1 Safety Preservation of principal is the foremost objective of the investment program. To attain this objective, funds shall be diversified among securities of high credit quality and liquidity, so that risk of loss of principal is minimized. 3.2 Liquidity The City’s investments shall be made for such periods as to enable the City to meet all operating requirements that may be scheduled or reasonably anticipated. 3.3 Return on Investments A goal of the investment program shall be to maximize investment return within the constraints of Sections 3.1 and 3.2. 4.0 Delegation of Authority Authority to manage the City of Dover’s investment program is derived from this Policy, which is approved by City Council, and “Dover Code, PART I, Subpart A, Article II, Section 17" (attachment B) which states in part that “The Controller/Treasurer shall be the custodian of all of the City funds.” The City’s Controller/Treasurer shall: 1) Review this Policy annually and recommend changes, if any, to City Council; 2) Be charged with implementing the Policy, and may delegate authority to make investments to an investment advisor. The Controller/Treasurer shall be responsible for all investment transactions and shall establish controls to regulate the activities of the investment advisor, if any. 3) Ensure that records of the City’s investment activities are kept for ten years. 5.0 Prudence, Ethics and Conflicts of Interest Any official of the City or investment advisor/manager empowered to make investments on behalf of the City of Dover shall comply with the following: 5.1 “Prudent Person” Rule Investment decisions shall be made with the judgment and care which persons of reasonable intelligence, under circumstances prevailing at the time the investment is made, would exercise in the management of their own investments assuming that their objectives are those shown in Section 3.0 of this policy. 5.2 Ethics and Conflict of Interest The delegate authorized to make City investments shall act at all times in an ethical manner, and shall not engage in activity that could impair or be perceived to impair their ability to make impartial investment decisions. They shall disclose to the Mayor and City Council any material interests in financial institutions with which the City has financial dealings, and which may be related to the performance of the investment program. Employees and officers shall refrain from undertaking personal investment transactions with the same individual(s) with whom business is conducted on behalf of the City. Investment Policy Page 3 of 15

6.0 Authorized Institutions and Dealers All broker/dealers that desire to become qualified for investment transactions with the City shall meet the following: 1. Primary dealers and regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule) 2. Capital of at least $25,000,000 or capital of $5,000,000 for firms incorporated in the State of Delaware 3. Registered as a dealer under the Securities Exchange Act of 1934 4. Member of the Financial Industry Regulatory Authority (FINRA) 5. Registered to sell securities in the State of Delaware 6. Engaged in the business of effecting transactions in U.S. government, federal agency, and corporate securities for at least five (5) consecutive years To the extent the City utilizes the services of an outside Investment Advisor, it shall be the responsibility of the Investment Advisor to maintain an approved list of brokers. 7.0 Safekeeping and Custody To ensure that securities are deposited in an eligible financial institution prior to the release of funds, all trades of marketable securities will be executed by delivery vs. payment (“DVP”). Further, all securities will be held by an independent third-party custodian, in the name of the City, and evidenced by safekeeping receipts in the City’s name. The custodian shall provide daily confirmation of held securities as well as a monthly transactions and holdings report. 8.0 Authorized Investments and Trading of Securities The Controller/Treasurer or authorized delegate may invest only in the types of securities listed below. The maximum stated maturity of any security shall be limited to 10 years at settlement, unless otherwise stated. The maximum average maturity of the portfolio shall be seven years. For asset backed and Agency mortgage backed securities, the maximum maturity shall be defined as the weighted average life (“WAL”). WAL is a convention that estimates the expected weighted amount of time, in years, for the principal amount of an issue to be fully paid. For Agency mortgage backed securities, WAL shall be limited to 10 years, measured at the settlement date, provided by Bloomberg Financial Markets. For asset backed securities, the average life must not exceed two years, except for such securities that are subject to periodic reset of coupon or interest rate - - these may have an average life not to exceed three years. 8.1 United States Government Securities Marketable securities issued by the U.S. Government and supported by the full faith and credit of the U. S. Treasury either by statue or an opinion of the attorney general of the United States. The maximum maturity shall be limited to 10 years. Up to 100% of the portfolio may be invested in this sector. 8.2 Government Agency Securities Debt securities issued by government-sponsored enterprises (“GSE”), federal agencies, federal financing banks, and instrumentalities of the U.S. Government. Investment Policy Page 4 of 15

The maximum maturity shall be limited to 10 years. Up to 50% of the portfolio may be invested in this sector, with a maximum of 20% in any one issuer. 8.3 Certificates of Deposit and Time Deposits 8.3.1 Domestic Institutions: Issued or endorsed by a domestic bank, or a savings and loan association, organized and supervised under the laws of the United States and denominated in U.S. dollars; provided, however, that deposits are fully insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). If not insured by the FDIC:  The banking institution must have assets of not less than $5 billion; and  Issuers must have a short-term rating in the highest category by Standard & Poor’s, Moody’s, or Fitch and a long-term rating of at least the “A” category by Standard & Poor’s, Moody’s, or Fitch. The maximum maturity of any investment in this sector shall be limited to 10 years at trade settlement. This sector shall not exceed 25% of the total portfolio. No single issuer shall exceed 5% of the City’s portfolio. 8.3.2 Delaware-Domiciled Institutions: Issued by or endorsed by any bank or savings association domiciled in the State of Delaware and organized and supervised under federal or State of Delaware banking laws which does not meet the requirements of Section 8.3.1 hereto; provided, however, that:  For each of the latest two years, the bank or association has had a return on total average assets of 0.50% or greater and an average capital ratio (defined as total equity capital to total assets) of at least 1 to 20, or the instrument is secured as set forth in Section 9, “Collateralization of City Deposits,” hereto; and  Not more than the lesser of $10 million or 25% of an issuer’s total equity capital, may be invested in any one issuer. (Investments due to mature in one business day may be excluded from the computation of this percentage.)  The Board expressly affirms that, consistent with these guidelines, Delaware banks and savings associations should be considered as a source of investment.  The maximum stated maturity of any investment in this sector shall be limited to 10 years at time of purchase. This sector shall not exceed 20% of the total portfolio. No single issuer shall exceed 5% of the City’s portfolio. 8.4 Corporate Debt Instruments Such instruments include commercial paper bankers’ acceptances, and non- convertible senior debt securities (bonds and debentures). 8.4.1 Corporate securities must be denominated/issued in US dollars. Many foreign corporations issue debt/securities in the US market, in US dollars. 8.4.2 No single issuer shall exceed 5% of the City’s portfolio. Investment Policy Page 5 of 15

8.4.3 Commercial Paper shall be limited to a final maturity of 270 days. This sector shall not exceed 25% of the total portfolio. Issuers shall be rated in the highest short-term category by Standard & Poor’s, Moody’s, or Fitch. 8.4.4. Bankers’ Acceptances shall be limited to a final maturity of 365 days. This sector shall not exceed 25% of the City’s Portfolio. Issuers shall be rated in the highest short-term rating by Standard & Poor’s, Moody’s, or Fitch. 8.4.5 Corporate bonds and debentures shall be limited to a final maturity of 10 years. This sector shall not exceed 50% of the total portfolio. Issuers shall hold a long-term rating of at least the “A” category by Standard & Poor’s, Moody’s, or Fitch. 8.5 Repurchase Agreements The underlying collateral shall consist of U.S. government and/or GSE securities provided, however, that: 8.5.1 All repurchase agreements must be governed by a written master repurchase agreement; 8.5.2 Agreements will be entered into only with respect to underlying securities in which the investment manager may otherwise invest as described above, and only with a recognized U.S. Government/broker or a bank which meets the requirements set out under paragraph Section 8.3.1 or 8.3.2 above; 8.5.3 In the case of repurchase collateral held in book-entry form in the Federal Reserve System, all deliveries of securities must be made, for the transfer thereof, through the Federal Reserve book-entry system to the account designated by the investment manager for such purpose. Securities held in certificated form must be delivered to the investment manager or a custodian as directed by the investment manager. 8.5.4 Any collateral employed under this paragraph shall be counted towards the applicable maximum limits set forth within these guidelines for such type of investment, and such collateral shall be valued at market at not less than 103 percent of the maturity value of the agreement and marked-to-the-market as requested by the investment manager. 8.5.5 Repurchase agreements shall be limited to a maximum maturity of 90 days from date of purchase. This sector shall not exceed 50% of the total portfolio. No single issuer shall exceed 25% of the City’s portfolio. 8.6 Registered Investment Companies (Money Market Funds) No single fund shall exceed 25% of the City’s portfolio. Money market funds shall be rated AAA by Standard & Poor’s. A current prospectus must be obtained before investing in any money market fund, and current holdings reports must be maintained at least each month. 8.7 Mortgage-Backed Securities Mortgage-backed securities issued by the following: Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Association (FHLMC). This sector, combined with the asset backed security sector, shall not exceed 10% of the total portfolio. Investment Policy Page 6 of 15

8.8 Asset Backed Securities These investments include auto loan receivables, credit card receivables, home equity loans, and manufactured housing loans. These can be fixed or floating rate and must be rated in the highest long-term category by Standard & Poor’s, Moody’s, or Fitch. This sector, combined with the mortgage-backed security sector, shall not exceed 10% of the City’s portfolio. No single issuer shall exceed 5% of the City’s portfolio. 8.9 Municipal Obligations Taxable and tax-exempt securities issued by state and local governments and public authorities in the United States. The maximum stated maturity of any investment in this sector shall be limited to 10 years at time of purchase. This sector shall not exceed 30% of the City’s portfolio. No single issuer shall exceed 5% of the City’s portfolio. Issuers shall be rated in at least the “A” category by Standard & Poor’s, Moody’s, or Fitch. Additionally, Issuers in the short term market (under one year) shall be rated at a minimum of “mig-1”, “f1” or “sp-1” for Moody’s, Fitch and Standard &Poor’s. 8.10 State of Delaware Investments Pool 8.10.1 Delaware Local Government Investment Pool (DELGIP) -The investment in this pool is permitted in relation to the City's cash flow and the guidelines set forth by the State of Delaware. The investment in this pool will not exceed 25% of the total funds available and will be monitored by the City's Finance Department on a monthly basis. 8.10.2 Delaware Local Government Retirement Investment Pool (DELRIP) The investment in this pool is permitted in relation to the City's Post-Retirement Benefits Fund. The investment in this pool will not exceed 25% of the total funds available and will be monitored by the City's Finance Department on a monthly basis. 8.11 Trading Securities The Controller/Treasurer is hereby authorized to sell securities prior to their stated maturity date in the following circumstances: 1. A security with declining credit may be sold prior to its maturity to minimize loss of principal; 2. A security swap may be executed if it would improve the quality, yield, or target duration of the portfolio; 3. Securities may be sold to provide needed liquidity. 8.12 Internal Control on such transactions 8.12.1 An investment report will be provided to the Council on a quarterly basis. 8.12.2 All investment reporting documents will be provided to the independent auditors. 8.12.3 Investment records will be kept by the City for ten (10) years. 8.12.4 The trading shall not involve any hedge, derivatives and/or borrowing funds for trading purposes. Investment Policy Page 7 of 15

A summary of permitted investments is below: Investment Sector Issuer Maturity Credit Quality Type Limit Limit Limit Minimum United States Government 100% 100% 10 Years N/A Securities Government Agency 50% 20% 10 Years N/A Securities Mortgage-Backed Securities N/A 10 Year WAL N/A Combined 10% limit Highest long-term Asset Backed Securities 5% 2 Year WAL rating by Fitch, Moody's or S&P Long-term rating of at least “A” by S&P, Moody’s, or Fitch For issuers in short Municipal Obligations 30% 5% 10 Years term market, rating of at least “mig-1”, “f1 or “sp-1” for Moody’s, Fitch & S&P FDIC-Insured Deposits 25% 5% 10 Years N/A Highest short-term rating by Fitch, Certificates of Deposit and Moody's or S&P. Time Deposits (not insured 25% 5% 10 Years Long-term rating of at by FDIC) least “A” by S&P, Moody’s, or Fitch Delaware-Domiciled 20% 5% 10 Years N/A Institutions Highest short-term Commercial Paper 25% 5% 270 Days rating by Fitch, Moody's or S&P Highest short-term Bankers’ Acceptances 25% 5% 365 Days rating by Fitch, Moody's or S&P Long-term rating of at Corporate Bonds and 50% 5% 10 Years least “A” by S&P, Debentures Moody’s, or Fitch Repurchase Agreements 50% 25% 90 days N/A Registered Investment Companies (Money Market 100% 25% N/A AAAm by S&P Funds) Delaware Local Government 25% N/A N/A N/A Investment Pool Delaware Local Government 25% N/A N/A N/A Retirement Investment Pool Investment Policy Page 8 of 15

9.0 Collateralization of City Deposits If the City deposits funds in any financial institution, those funds will be subject to the following collateralization requirements. The financial institution shall: 9.1 Collateralize the City’s daily ledger balance(s) if, for any quarter during the most recent eight quarters the bank has not met both of the following two criteria:  Return on total average assets of 0.50 percent or greater.  Average capital ratio (total equity to total assets) of 5.00 percent or greater. 9.2 If either criterion in paragraph 9.1 is not satisfied collateral must be pledged and shall consist of one or more of the following securities:  U.S. Government securities  U.S. Government agency securities  Federal Home Loan Board letters of credit  State of Delaware securities  Mortgage backed securities as referenced in Section 8.7  Securities of a political subdivision of the State of Delaware with a Moody’s rating of “A” or better 9.3 Ensure that the securities pledged as collateral (except for Federal Home Loan Board letters of credit) have a market value equal to or greater than 102 percent of the ledger balance(s) in the account(s) marked to market each day. 9.4 Ensure that securities pledged as collateral are housed at the Federal Reserve Bank or a mutually agreed upon third party depository. (The trust department of the winning vendor will not be acceptable.) 9.5 Provide reports on a monthly basis to the City Finance Department detailing the collateral pledged. 9.6 Provide a Call Report (Consolidated Report of Condition and Income, FFIEC 031) on a quarterly basis to the City Finance Department. 10.0 Policy Considerations If securities owned by the City are downgraded by either Standard & Poor’s, Fitch or Moody’s to a level below the quality required by this Policy, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a security is downgraded two grades below the level required by the Policy, the security shall be sold immediately. If a security is downgraded one grade below the level required by this Policy and matures within 6 months, the security may be held to maturity. The Controller/Treasurer may determine to sell the security if it is determined that there is a probability of default prior to maturity. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the Controller/Treasurer. Investment Policy Page 9 of 15

11.0 Internal Controls The Controller/Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. The Controller/Treasurer shall also establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following:  Control of collusion  Separation of transaction authority from accounting and recordkeeping  Custodial safekeeping  Prohibition of physical delivery securities  Clear, written delegation of authority to subordinate staff members  Written confirmation of transactions for investments and wire transfers 12.0 Performance Standards The City of Dover’s investment decisions shall be made with the objective of obtaining a rate of return commensurate with the investment risk constraints and the cash flow needs. On a quarterly basis, the Controller/Treasurer shall compare the City’s portfolio against the Merrill Lynch 0-5 Year U.S. Treasury Index, in terms of time-weighted total return and average duration for the period under review. 13.0 Reporting At the end of each calendar quarter, the Controller/Treasurer will submit a report of all quarter-ending investments to the Mayor and City Council. Reports shall include the following:  Listing of individual securities held as of last day of reporting period, sorted by sector  Par, market, and amortized cost values of each security  Coupon, current yield, and final stated maturity date of each security 14.0 Investment Policy Adoption The City of Dover’s investment policy will be adopted by the City Council after review and recommendation of the Legislative and Finance Committee. The policy will be reviewed at least once every year by the Legislative and Finance Committee, which is charged with considering the existing policy and any recommendations to modify the policy. Any modifications to the policy must be approved by the City Council. LEGEND 1. Original approval by City Council - November 14, 1988 2. Revised policy approved by City Council - March 7, 2005 3. City Council Approved with No Changes – April 14, 2008 4. Revised policy approved by City Council – July 25, 2011 5. Revised policy approved by City Council – August 12, 2013. 6. Revised policy approved by City Council – September 8, 2014 7. Revised policy approved by City Council – October 10, 2016 8. Revised policy approved by City Council – October 23, 2017 9. City Council Approved with No Changes – December 10, 2018 Investment Policy Page 10 of 15

ATTACHMENT A GLOSSARY AGENCIES: Federal agency securities, otherwise known as “Government Sponsored Enterprises.” CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CD's are typically negotiable. BANKERS ACCEPTANCE: A short-term credit investment which is created by a non- financial firm and whose payment is guaranteed by a bank. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs. Maturities typically range from one (1) to 270 days. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of Dover. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. CORPORATE BONDS: A debt security issued by a corporation based in the United States of America. Such bonds usually have a par value of $1,000, have a term maturity, and are traded on a major exchange. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns, in an attempt to limit risk. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. Investment Policy Page 11 of 15

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "passthroughs" is often used to describe Ginnie Mae's. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumable be purchased or sold. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MORTGAGE-BACKED SECURITIES (MBS): An investment instrument that represents ownership of, and is backed by, an individual interest in a pool of mortgages such as those issued by Ginnie Mae or Freddie Mac. Principal and interest from the individual mortgages is used to pay principal and interest on the MBS. MUNICIPAL NOTES AND BONDS: Securities issued by a state, city, or local government to finance operations or special projects. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state--the so-called legal list. In other states the trustee may invest in a security if it is one which Investment Policy Page 12 of 15

would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: A measure of worth, either at security or aggregate portfolio level, over a period of time. There are many return conventions, including but not limited to yield to maturity at cost, yield to maturity at market, yield to worst, time weighted total return, dollar weighted total return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, that is, increasing bank reserves. REVERSE REPURCHASE AGREEMENT: The purchase of a security by a dealer with the agreement to sell it back to the seller at a fixed price at a later date. Typically used by owners of securities to finance short-term needs without having to liquidate the security. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. TIME DEPOSITS: A savings account or CD held for a fixed term or with the understanding that the customer can withdraw only by giving advanced notice. TREASURY BILLS: A short-term (less than one year) non-interest bearing discount security issued by the U.S. Treasury department to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1: also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. Investment Policy Page 13 of 15

VARIABLE RATE MASTER DEMAND NOTES: A floating rate security with initial maturities and indexed rates chosen by the investor. The interest rate is adjusted periodically, usually off a standard such as that prevailing on a Treasury Bill or the prime interest rate. YIELD: The rate of annual income return on an investment, expressed as a percentage. INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. Investment Policy Page 14 of 15

ATTACHMENT B Dover, Delaware, Code of Ordinances >> PART I - CHARTER AND RELATED LAWS PART I - CHARTER AND RELATED LAWS [1] Subpart A - CHARTER PREAMBLE [3] We the people of the City of Dover, under the constitution and laws of the state of Delaware, in order to secure the benefits of local self-government and to provide for an honest and accountable council-manager government, do hereby adopt this charter and confer upon the city the following powers, subject to the following restrictions, and prescribed by the following procedures and governmental structure. By this action, we secure the benefits of home rule and affirm the values of representative democracy, professional management, strong political leadership, citizen participation, and regional cooperation. ARTICLE I. - POWERS OF THE CITY ARTICLE II. - MAYOR AND COUNCIL Sec. 17. - Controller/treasurer. At the annual meeting the council shall elect a controller/treasurer to hold office until the next annual meeting of the council, or until his/her successor has been duly chosen and qualified, but subject to removal at any time by the council. The controller/treasurer shall be the custodian of all the city funds and shall deposit them in a banking institution designated by the council. (Amd. of 7-12-2005 (S.B. 126); Amd. of 7-8-2009 (S.B. 165, § 15)) Investment Policy Page 15 of 15