COUNCIL Minutes

REGULAR COUNCIL MEETING The Regular Council Meeting was held on March 22, 2010 at 7:30 p.m. with Council President Williams presiding. Council members present were Mr. Leary, Mrs. Russell, Mr. McGlumphy, Mr. McGiffin, Mr. Hogan, Mr. Salters, and Mr. Ruane. Mr. Slavin was absent. Council staff members present were Police Chief Horvath, Ms. Russell, Mrs. Mitchell, Mrs. Townshend, Fire Chief Christiansen, Mr. DePrima, City Solicitor Rodriguez, and Mrs. McDowell. Mayor Carey was also present. OPEN FORUM The Open Forum was held at 7:16 p.m., prior to commencement of the Official Council Meeting. Council President Williams declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action. Mrs. Sara Herbert, 223 N. Bradford Street, serving as spokesperson for several neighbors in attendance, relayed their concern regarding the deterioration of the community due to irresponsible landlords. She distributed pictures (as on file in the Office of the City Clerk) and read a statement into the record (Exhibit #1). Ms. Patricia Patterson, 218 N. State Street, stated that the trash pile at 225 N. Bradford Street can be viewed from her residence and is higher than her height. She advised members that there are dilapidated lawn mowers chained to a tree that are under the trash pile. She requested that the City take action to remedy this problem, which she stated has been ongoing for more than six (6) years. Council President Williams assured the residents that the appropriate staff members would be contacting them to address the issues. The invocation was given by Chaplain Dixon, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. McGiffin moved for approval of the agenda as presented, seconded by Mr. McGlumphy and unanimously carried. Mr. McGlumphy moved for approval of the consent agenda, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF MARCH 8, 2010 The Minutes of the Regular Council Meeting of March 8, 2010 were unanimously approved by motion of Mr. McGlumphy, seconded by Mr. Slavin and bore the written approval of Mayor Carey. PROCLAMATION - LIGHTS OUT DELAWARE - EARTH HOUR The City Clerk read the following Proclamation into the record:

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 2 WHEREAS, our nation's use of energy continues to increase, resulting in detrimental effects on the world's climate; and WHEREAS, it has been estimated that turning non-essential lights out in America for one hour could save as much as 15% of the energy consumed on an average Saturday night; and WHEREAS, the energy savings will reduce carbon emissions into our air, preserve the natural resources used to produce this energy, set a positive precedent for the rest of the nation, and result in ongoing reduced costs for the taxpayers and businesses of the City of Dover; and WHEREAS, participation in Lights Out America - Earth Hour will provide the residents of the City of Dover with insight into the impact of light pollution and allow them to witness firsthand the benefits of regulating outdoor lighting. NOW THEREFORE I, CARLETON E. CAREY, SR., MAYOR OF THE CITY OF DOVER, DELAWARE support the recognition of LIGHTS OUT AMERICA - EARTH HOUR on March 27, 2010, by recommending that the residents and businesses of the City of Dover participate by turning out non-essential lights from 8:30 p.m. to 9:30 p.m. Mayor Carey presented the Proclamation to Mr. Ron Zink, of the Sierra Club, in appreciation for their efforts to conserve energy. Mr. Zink relayed appreciation for the recognition and support of their efforts. ANNOUNCEMENT BY MAYOR CAREY - RETIREMENT OF POLICE CHIEF JEFFREY HORVATH Mayor Carey announced that he received a letter of retirement from Police Chief Jeffrey Horvath after 26 years of service to the City of Dover, having served as Police Chief for the past nine (9) years. He commended Chief Horvath for his outstanding service to the community and outstanding leadership in moving the Police Department forward. He stated that it was with mixed emotions that he accepted Chief Horvath=s letter of retirement to become effective April 3, 2010. Mayor Carey introduced Major James Hosfelt, who has been employed with the City of Dover Police Department for 21 years, and who will assume the position of Police Chief. He announced that there would be a Change of Command Ceremony on April 1, 2010. Police Chief Horvath stated that nine (9) years ago, when he was appointed Police Chief by Mayor Hutchison, he was advised that one of the Police Chief=s most important responsibilities was to put the proper people in place to take charge when he retired. He assured members that he has accomplished that task and that Major Hosfelt will serve the City well as Police Chief. He thanked everyone for all the support provided to the Police Department and relayed appreciation for the dedication of the Mayor, Council, City Solicitor, and City staff. He indicated that it has been his pleasure and honor to work for the City of Dover. Major Hosfelt thanked the Mayor for the support provided in his appointment as Police Chief. He stated that he has had the pleasure of working under the leadership of Chief Horvath for the past 21 years and looks forward to working with the City and his extended family, which are the

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 3 members of the Dover Police Department, in this new capacity. PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE REPORT - MARCH 8, 2010 The Parks, Recreation, and Community Enhancement Committee met on March 8, 2010 with Chairwoman Russell presiding. PRESENTATIONS Beautification Partnership Project - Dover Housing Authority and Habitat for Humanity Ms. Jocelyn McBride, Executive Director of the Central Delaware Habitat for Humanity, provided members with an information sheet (attached to Committee minutes) detailing a "1-2-3 = ABC Community Event" being sponsored by the Dover Housing Authority and the Central Delaware Habitat for Humanity, with the support of Senator Carper=s office and Wesley College. Ms. McBride explained that the proposed project is a one-day community clean-up scheduled for August 21, 2010 from 8:00 a.m. to 3:00 p.m. and will focus on improving curb appeal and streetscape in a 20-block area of Downtown Dover, from West Street to Governors Avenue between Mary and Loockerman Streets. She stated that over 400 volunteers will be involved, including a large number of Wesley College freshmen who will participate as part of their student orientation. She explained that a group of volunteers will be assigned to each street to perform trash pick-up, raking, and curb painting. In addition, homeowners in the target area will be given an opportunity to submit applications to have minor home repairs completed free of charge. Each group working on homes will have a skilled maintenance person present to supervise repairs. She noted that donations will be solicited for materials and supplies. Ms. McBride mentioned that the downtown area will be promoted during this event, and merchants in the area will be given an opportunity to sponsor beautification projects and provide discount coupons to participants. Ms. McBride requested support from the City in identifying and assessing properties to be targeted, assisting with permitting, providing trash pick-up service, allowing access to fire hydrants to be used in pressure washing homes, providing police presence as needed, and assisting with other event-related needs. Mr. William Neaton, Economic Development Director and Director of the Downtown Dover Partnership, stated that he applauded the efforts of the organizers and fully endorses the project. Mr. Ruane suggested that the project planning team contact Ms. Pamela Sapco, Executive Director of the Delaware Center for Horticulture, who administers a State-wide program that includes development of horticultural projects such as community gardens, public landscapes, and tree programs, for a possible tie-in with this event. In response to Mr. Lewis, Ms. McBride noted that Wesley College has volunteered their athletic fields as the primary location for volunteers to congregate. Responding to Mrs. Russell, Ms. McBride indicated that income level will not be considered when evaluating home repair applications, although information will be collected regarding how many people are in each household and how many families are being served.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 4 Ms. Ami Sebastian-Hauer, Executive Director of Dover Housing Authority, noted that a kickoff for the event is being planned for the middle of April and applications will be received from May 1, 2010 through June 1, 2010. Mr. Anthony DePrima, City Manager, stated his support for the project and indicated that the City would definitely like to participate. He commended the Dover Housing Authority and the Habitat for Humanity for collaborating on the joint undertaking. Mr. DePrima stated that accessing fire hydrants would be difficult to arrange because of potential problems with the water system. He suggested that a City of Dover representative be appointed to the event planning committee to serve as a point of contact. Ms. Sebastian-Hauer noted Wesley College=s support in the form of contributing T-shirts, supplies, volunteers, and the use of athletic fields. The Committee recommended acceptance of the report and that the City of Dover provide support for the event in every way possible. By consent agenda, Mr. McGlumphy moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). Overview of Salvation Army Programs Captain Jeny Shurtleff, Salvation Army Corps Commander, reviewed a presentation regarding the Salvation Army (attachment to Committee minutes). The presentation included information on the history of the organization, the extent of the Salvation Army=s influence, both nationally and internationally, and the structure of the organization. She mentioned features that make the organization unique, including its spiritual and social service functions, its emphasis on music, the publications that the organization produces, and its quasi-military format. She noted that the Salvation Army in Dover provides a number of community services including spiritual services and a variety of youth programs, including after-school programs for Booker T. Washington, Central Middle School, and William Henry students. She noted that staff includes a full-time caseworker who assists with crisis alleviation, resume writing, and personal budgeting, and a part-time cook who prepares food for the soup kitchen and for youth in the afterschool program. She added that the organization participates in a kettle drive, which begins with an annual kick-off at City Hall during the Christmas season and is supplemented with a Christmas in July drive. Captain Shurtleff stated that she and her husband have been directing the program in Dover since July of 2008 and have been working since then to improve the exterior and interior of the building. An open house was held recently to showcase improvements made to the facility and volunteers were recognized. She emphasized that there are always opportunities for volunteers in the organization, specifically in the soup kitchen, assisting with the kettle drive, and working with children. In response to Mr. Ruane, Captain Shurtleff noted that approximately 50 individuals are fed on days when the soup kitchen is in operation. In response to Mr. DePrima, Captain Shurtleff explained that Mr. Walter Bagley serves on the Board of Directors for Dover Interfaith Mission for Housing and the Salvation Army Council and is, therefore, in a position to communicate information between the two (2) groups. She

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 5 further explained that it is possible that the Salvation Army could provide emergency shelter for homeless individuals on cold nights if the Interfaith Mission runs out of space, but volunteers would be needed to staff the facility. Responding to Mrs. Russell, Captain Shurtleff indicated that one of the organizations goals is to open the Salvation Army=s gym for youth basketball, and to provide the facility as a safe environment for Friday night dances for young people. She noted that the building may be rented out to generate income for other programs. Mr. Ruane expressed his appreciation for the work the Salvation Army is doing in the community. Silver Lake Revitalization Mr. Zachery Carter, Director of Parks and Recreation, provided members with a schematic drawing of Proposed Landscape and Stormwater Improvements for Silver Lake Park (attachment to Committee minutes), noting that the diagram represents the area of the park that is accessed from Kings Highway. He explained that the Silver Lake Commission has been working on ideas to improve the water quality of the St. Jones River and Silver Lake and has discussed the proposal with the State and with neighbors of the park. Mr. Carter introduced Ms. Laura Allison, the new St. Jones Watershed Coordinator, who will be working closely with the Silver Lake Commission to discuss possible improvements. Mr. Carter pointed out areas that are planned for native meadow plantings to help filter water runoff and reduce the need to mow. He explained that an area between the road and the river currently consists of dirt with exposed tree roots that are being eroded and will be replaced with wetland plantings and large, level, boulders will be placed at the edge of the water to create access to the river for fisherman. Walkways will also be provided to grant access through the wetland area. Parking will be relocated to the east side of the roadway, and the roadway will be moved 15-18 feet to the east. He noted that the area east of the road will remain turf grass, and a stretch of native meadow grasses will be added to the eastern border of the area. Mr. Carter explained that additional improvements are proposed to improve water drainage from the south end of the target area. Mr. Carter noted that the Silver Lake Commission endorsed the plan at their last meeting. He explained that the proposal was developed so that the group would be prepared to move forward if stimulus money becomes available. In response to Mr. Ruane, Mr. Carter estimated the cost of the project at $150,000 to $300,000 and noted that the State Department of Natural Resources and Environmental Control may also be able to help with funding. Responding to Mr. Ruane, Mr. Carter noted that the proposal encompasses Phase 2 of an improvement plan, and that Phase 1, which involved the establishment of native grasses by the bank of the river near Division Street, has been completed. He also mentioned that State funds have been designated to improve the water flow of the ditch that drains Washington Street on the west side of the Park. Mr. Carter stated that consideration will also be given to how Dover High School and Delaware Technical and Community College can improve drainage on their properties, which flows into Silver Lake.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 6 In response to Mr. Ruane, Mr. Carter stated that there is no funding in the City=s Capital Improvement Plan for the project at this time, but that stimulus fund opportunities are being sought. The Committee recommended supporting the plan as presented. By consent agenda, Mr. McGlumphy moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). Library Bid Package A Mr. Zachery Carter, Director of Parks and Recreation, explained that, with the completion of the Design Development Phase of the Dover Anchor Public Library, the Library Steering Committee is ready to proceed with completing Construction Documents for Bid Package A, which will allow for construction of the exit road to Innovation Way from the existing City Hall parking lot, the relocation of the existing electric utility lines and transformers in this area, and construction of a retaining wall. These documents will be completed and bid as a separate package to allow this work to start prior to the library building and overall site construction. Mr. Carter explained that Holzman Moss Bottino Architecture has been selected to perform this work at a cost of $25,300, which will cover total expenses and an estimated 10 percent project reimbursables. In response to Mr. Ruane, Mr. Carter explained that funding for this portion of the project will come from the Library Reserve Fund and matching funds will be received from a State grant. Mr. Carter stated the importance of moving forward with this "groundbreaking" project to demonstrate to the State of Delaware the City=s commitment to the project. Staff recommended that the Professional Services Contract for Dover Anchor Public Library Bid Package A – Early Site Package for the Construction Documents, Bidding and Negotiation, and Construction Administration for the exit road to Innovation Way and the relocation of utilities in this area be awarded to Holzman Moss Bottino Architecture for the amount of $25,300 (including reimbursables) and that authorization be granted to the City Manager to enter into this contractual agreement. The Committee recommended approval of staff=s recommendation. By consent agenda, Mr. McGlumphy moved for approval of the Committee=s recommendation to award the Professional Services Contract for Dover Anchor Public Library Bid Package A – Early Site Package for the Construction Documents, Bidding and Negotiation, and Construction Administration for the exit road to Innovation Way and the relocation of utilities in this area to Holzman Moss Bottino Architecture for the amount of $25,300 (including reimbursables) and that authorization be granted to the City Manager to enter into this contractual agreement. The motion was seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). Construction Manager and Construction Documents Mr. Zachery Carter, Director of Parks and Recreation, indicated that EDiS Company was

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 7 selected as the Construction Management firm for the Dover Anchor Library project in July 2009. They have completed the work on the Design Development Phase, and the project is now entering the Construction Documents phase. He explained that this is the final phase before the bidding process begins for the Dover Anchor Library and is a continuation of work that EDiS completed during the Design Development Phase. Mr. Carter explained that, under this proposal, EdiS will review all documents to ensure that all elements follow the City=s desires for the project, as determined in the Design Development Phase, and that the City obtains a good value for dollars expended. In response to Mr. Ruane, Mr. Carter noted that EDiS reviewed the initial documents and was able to reduce the overall budget for the project from approximately $24 million to $22 million. He also noted that the funds for these services will be allocated from the City=s Library Reserve Fund with matching funds from the State of Delaware. Staff recommended that EDiS Company be hired as the Construction Management firm for pre- construction for the Dover Public Anchor Library and that the City Manager be authorized to enter into a contractual agreement for the Construction Document Services in the amount of $38,500 (including reimbursables). The Committee recommended approval of staff=s recommendation. By consent agenda, Mr. McGlumphy moved for approval of the Committee=s recommendation to approve hiring EDiS Company as the Construction Management firm for pre-construction for the Dover Public Anchor Library and that the City Manager be authorized to enter into a contractual agreement for the Construction Document Services in the amount of $38,500 (including reimbursables). The motion was seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). After-school Grant - Capital School District Mr. Zachery Carter, Director of Parks and Recreation, stated that the Capital School District currently pays the City of Dover to administer recreational after-school programs at Towne Point and Central Middle Schools. He indicated that the School District has an opportunity to apply for additional grant funding to expand the program to add 6-8 week recreational sessions in the fall and winter at Dover High School. Under this proposal, the Parks and Recreation Department would develop sports and recreational programs, hire skilled employees to provide age and socially appropriate recreation activities, and engage a part-time individual to oversee the program. If the School District receives the grant, approximately $25,060 will be available to cover all costs and fund the program. In response to Mr. Lewis, Mr. Carter stated that the part-time position would likely be advertised; however, he noted that the Capital School District may have a qualified individual. He indicated that sports officials and instructors will probably be contracted. The Committee recommended that the City of Dover assume oversight responsibility for an after- school program at Dover High school if the Capital School District receives grant funding.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 8 By consent agenda, Mr. McGlumphy moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). UPDATES Puncheon Run Watershed Action Team Update No update was provided due to the absence of Mr. Scott Koenig, Public Services Director, during this portion of the meeting. Planning and Funding for New Library Ms. Margery Cyr, Library Director, stated that she met with Mr. There DuPont of the Longwood Foundation on March 8, 2010, and established that a grant request for $1 million should be submitted to the Foundation in time to meet Longwood=s March 15, 2010 deadline. She explained that a request for $1 million dollars in Federal appropriations has been submitted, with the help of Ms. Lori James from Senator Tom Carper=s office, and noted that the request was sent to Senator Carper, Senator Ted Kaufman, and Congressman Mike Castle. Ms. Cyr noted a Library Foundation reception has been scheduled at the Governor=s House on May 6, 2010 from 5:00 - 7:00 p.m. The event will be hosted by Mrs. Carla Markell and all former Delaware First ladies will be invited. She explained that this will be an informational event for potential large donors and will be the lead-in to a large fundraising event to be scheduled soon after. Ms. Cyr explained that the Library will host a reception on March 16, 2010 for the candidates for Mayor and City Council to ensure that all those running for office are fully informed of the details of the Library Anchor Library Project. Community Development Block Grant (CDBG) Program Members reviewed a report of the Status of FY 2008-2009 Community Development Block Grant (CDBG) Projects. Mrs. Ann Marie Townshend, Director of Planning and Community Development, offered to respond to any questions that members might have regarding the submitted report. In response to Mr. Ruane, Mrs. Townshend stated that additional funds may have been expended by First State Resource Conservation and Development Council, Inc. (RC & D) since the Status of FY 08-09 Program Funds Spent Report was submitted, and she felt confident that all grant funds would be expended. Housing and Recovery Act of 2008 Funds (Neighborhood Stabilization Fund) Members reviewed a report on the Status of FY 2008-2009 Program Funds Spent - Fiscal Year 7/1/09-6/30/10. Mrs. Ann Marie Townshend, Director of Planning and Community Development, offered to respond to any questions that members may have regarding the report submitted. Responding to Mr. Ruane, Mrs. Townshend noted that a total of $1.5 million in funds was

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 9 received, six (6) properties have been purchased, and a seventh purchase will be closed in the near future. The goal for the program is to purchase eight (8) properties. Mr. Ruane requested that this type of information be included in future reports to provide benchmarks for reference. In response to Mr. Ruane, Mrs. Townshend explained that the Dover Community Partnership, the Diamond State Community Land Trust, and Connections Community Support Programs are the three (3) partner agencies that are purchasing the properties. The City of Dover is passing through the funds, developing the specifications for any rehabilitation that needs to take place, and providing down payment assistance. In response to Mr. Ruane, Mrs. Townshend stated that properties being purchased are distributed throughout the City. Comprehensive Plan Implementation Status Report Mrs. Ann Marie Townshend, Director of Planning and Community Development, stated that her staff has been working on several projects related to the implementation of the Comprehensive Plan, including a Master Plan for Garrison Oak, Environmental Protections, Evaluation and Update of Historic Guidelines, and Open Space Zones. In response to Mrs. Horsey, Mrs. Townshend indicated that staff attends Historic District Commission monthly meetings where portions of the Historic District Guidelines are reviewed. She noted the group is attempting to clarify historic standards as they relate to areas such as Loockerman Street and The Green. Mrs. Townshend stated that the two (2) largest projects related to the Comprehensive Plan that staff is addressing are the environmental ordinances and the Open Space Zone. She stated that staff has had two (2) meetings with stakeholders, including the Department of Natural Resources and Environmental Control and the Sierra Club. She noted that work continues with the Open Space Zone and that staff expects to bring a draft of the Open Space Zone to the April Committee meeting. Referring to the Open Space Zone, Mr. Ruane inquired whether there was a need for change in the code to include provisions for open space in the event of developer bankruptcies. During the City Council meeting of April 12, 2004, City Council approved an Open Space Plan for the Nottingham Meadows Subdivision at a cost in excess of $500,000. Mr. Ruane noted that the implementation of the plan is now in question due to financial difficulties encountered by the builder. Mrs. Townshend noted that if remaining lots in Nottingham Meadows are purchased, the active recreation area will have to be constructed before building permits can be issued. In response to Mrs. Donna Mitchell, Controller/Treasurer, she noted that open space requirements are listed on development plans, and any prospective purchaser would therefore be aware of this requirement. Mr. DePrima noted that there is no provision for residents already in the community who purchased homes with the expectation of open space being included in the development. Mr.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 10 DePrima noted that the subdivision ordinance includes the requirement of performance bonds for street programs and suggested that consideration be given to the institution of similar provisions for community buildings and park areas to fund construction in case of default. Mrs. Townsend noted there are some municipalities in Delaware that have established this requirement for open space. Under this approach, she explained that the developer is required to obtain a letter of credit from a bank which the municipality could call to pay for construction in the event of default. The Committee recommended that staff explore ways of requiring additional performance bonding related to the Open Space Creation Program. By consent agenda, Mr. McGlumphy moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). Youth Advisory Committee Mrs. Russell explained that the Youth Advisory Committee will hold a special meeting on March 18, 2010, to prepare for a clothing drive. The Committee is also discussing membership requirements and replacement of members who are departing for college in the fall. By consent agenda, Mr. McGlumphy moved for acceptance of the Parks, Recreation, and Community Enhancement Committee Report, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). UTILITY COMMITTEE REPORT - MARCH 8, 2010 The Utility Committee met on March 8, 2010 with Chairman Ruane presiding. Garrison Energy Center Mr. Ronald Lunt, Director of Public Utilities, introduced Mr. Jim Rexroad, principal party with Garrison Energy Center, and reminded members that since May 2007, the Dover 2030 Committee has been meeting regularly to review the PJM Market, evaluate the capacity/energy requirements of the electric system, and generally develop and evaluate plans to provide low-cost, reliable power to Dover=s citizens today and in the future. He noted that after extensive discussions on the market capacity and energy shortfalls, it was decided to solicit the energy/power plant development market to gain knowledge of what options are available to the City through a Request for Qualifications process. Mr. Lunt explained that the goal was to assess options presented by the developers. This concept was outlined at several Utility Committee Meetings. The City then completed Phase II of the project, which was the evaluation of the proposals and the selection of four (4) options in which to enter negotiations. Mr. Lunt stated that the agreement presented to members is the second to be considered from the negotiations process and will be for a land lease option to a power plant developer that is considering building a 150-300 megawatt (Mw) natural gas combined cycle generation facility

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 11 (plant). He explained that the City would have the option of attaining power from the developer through a Power Purchase Agreement (PPA). If approved, Mr. Lunt stated that the developer will have the sole right to execute a long term land lease. Mr. Lunt advised members that the proposed option is currently identified as Lot 7, which is located in the northeast corner of the Garrison Tract and consists of approximately 36.8 acres of useable land. He stated that, in addition to Lot 7, the developer is requesting an option for approximately 10.5 acres for a construction lay-down area, and 28.3+/- acres of buffer land, which is not able to be developed due to wetland issues. Mr. Lunt stated that the proposed option is for one year with an automatic one (1) year extension, should the developer decide to execute. He explained that an additional year may be added, for a total of three (3) years, provided that the developer files an interconnection with PJM, an air permit application, and a national gas interconnection, and requests an extension from the City. Mr. Lunt stated the developer will compensate the City $2,800 per year for the right to develop in the future and that the City would continue to receive income from the agricultural operations. The City contracted with Alvarez and Marsal Real Estate Advisory Services to perform a comprehensive land valuation. It was noted that Alvarez and Marsal recommended that the City collect between $450 to $550 annually for each acre; however, if the developer decides to construct the power plant and executes the lease, the City would collect $700 per acre plus annual inflation adjustments. Mr. Lunt assured members that the option to lease Garrison Tract has been viewed by the City=s attorney, Mr. Kirk Betts of Betts and Holt, and he approved the document in its final form. Staff recommended that the City Manager be authorized to execute the lease agreement with Garrison Energy, LLC, as per the terms outlined in the lease. It was noted that some proprietary information has been redacted from the presented option agreement and that this information was shared with City Council during the Executive Session held earlier this evening. Responding to Mr. Ruane, Mr. Lunt stated that the advantages of having a tenant on the property include: • Income from the lease. • Property would be taxable. • Use of water if a plant were built. • Bringing natural gas into Garrison Tract, which could possibly be used by other tenants on the property. • Generation asset located within the City of Dover. • If a Power Purchase Agreement (PPA) is executed, the generator could be interconnected directly into the City=s system; however, this would be negotiated in the PPA since there are additional costs; therefore, it would have to be negotiated. • If approved through PJM, the generator will interconnect into Delmarva=s 230 kV system (Cartanza Substation), which will aid in congestion costs and options on the Delmarva Pennisula. Mr. Lunt explained that with reduced congestion, the Locational Marginal Pricing (LMP) may also decrease.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 12 • Decommissioning clause allows the City to get the property back into its original condition. • Provides a collaboration between the City and developer. In response to Mr. Hogan, Mr. Lunt explained that NRG has closed two (2) plants in Indian River and has agreed to close an additional plant; therefore, the City will be losing more capacity than the proposed plant will be bringing in. Mr. Lunt advised members that RE units 1 and 2 are near the end of their life cycle, and at some point they will be retired and the City will lose an additional 37 megawatts (Mw). Responding to Mrs. Williams, Mr. Lunt stated that retired units will likely be held in place for the time being in the unlikely event that there is a change that would make re-powering them worthwhile. He noted that recycling the scrap metal would be labor intensive and, therefore, probably not profitable. In response to Mr. Ruane, Mr. Lunt stated that the City has a letter of intent for the Blue Water Wind project and that the renewable portfolio will be secure if it is built. The Committee recommended that the City Manager be authorized to execute the lease agreement with Garrison Energy, LLC, as per the terms outlined in the agreement and with final approval of City Council. By consent agenda, Mr. McGlumphy moved to authorize the City Manager to execute the lease agreement with Garrison Energy, LLC (Exhibit #2), as recommended by the Committee. The motion was seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). Discussion - Green Energy Grant Program On January 22, 2007, City Council adopted the Municipal Utilities= Green Energy Fund Program Caps and Regulations. The program was developed by the Delaware Municipal Electric Corporation, Inc. (DEMEC) and allows for the City to provide comparable grant limits and regulations to most other municipal and investor-owned utilities within Delaware. Mr. Anthony DePrima, City Manager, reminded members that under this program, a small portion of the bills of municipal and Delaware Electric Cooperative electric users is paid into a Green Energy Fund which is used to fund grants for green energy projects. He noted that currently municipalities are finding that the amount of grant funds requested exceeds available funds, resulting in lengthy waiting lists. He noted that the City currently has a seven (7) month waiting list and is requesting that individuals who wish to enter the program sign an agreement acknowledging that they may not receive their grant money for several months. Mr. DePrima stated that the City of New Castle, Town of Smyrna, and Town of Clayton have discontinued accepting applications for green energy projects due to this problem. He explained that these municipalities are planning to place this money toward projects that would benefit the entire system, such as conservation programs for public buildings and increasing efficiency in the utility systems, rather than financing individual projects. He noted that municipalities will begin this process by paying off pending grants and discontinuing initiating new grants.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 13 Mr. DePrima suggested that the City consider discontinuing the program until it is caught up and then possibly re-evaluate it, due to the extensive waiting lists. He also noted that the program was approved to fund demand-side management, energy efficiency, and green energy programs, and suggested that it might be more appropriate to target system-wide improvements that would benefit all users. In addition, he stated the State Energy Office will be providing programs similar to those currently being financed through this fund, and there is a tax credit available for green energy projects, so applicants may have access to other funding options. Mr. Hogan suggested that the City place a moratorium on accepting new applications until the list is reduced. However, he advocated an eventual return to funding individual projects as well, possibly reserving half of the funds for system-wide improvements and the other half for individual and commercial projects. Mr. McGiffin felt that the implementation of green energy changes by individual consumers is beneficial to everyone. Mr. DePrima noted that placing a moratorium would allow time to receive information from the State Office of Energy regarding the distribution of funds that may be made available either to municipalities or to consumers to fund green energy projects. Mr. McGiffin stated that, during the Utility Committee meeting of February 22, 2010, it was noted that the City had $111,518 pending in grant applications. Mr. DePrima explained that the City receives approximately $10,000 per month in revenue from the Green Energy Rate. In addition, he noted that many of the grant applicants are commercial users rather than individuals, and that the City itself is an applicant for a geothermal project planned for the new library. In response to Mr. Snaman, Mr. DePrima stated that the City would continue to receive the federal tax credit. Responding to Mr. Ruane, Mr. DePrima stated that he believed that there were eight (8) or nine (9) projects on the waiting list and that staff would provide members with a detailed report at a future meeting. PACE/NAES Monthly Report (January) Members were provided the PACE/NAES Monthly Report for January. The report was provided to allow members the opportunity to monitor what is being sold in electric and the revenues received, which will give members a better understanding of any fluctuations and make improvements if deemed necessary. Although it was not staff=s intention to make a presentation of the report, they welcomed any questions. Mr. Anthony DePrima, City Manager, advised members that the budget was reset as part of the mid-year review process. He further mentioned that, due to the cold weather, January=s actual usage was above the projected low. Mr. DePrima noted the Environmental Protection Agency

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 14 (EPA) has requested that the plant be turned on in June for testing, which will cost the City approximately $500,000 in fuel and operating expenses. He stated that the testing would increase emissions by 1/3 and that he will be meeting and corresponding with the Congressional delegation to brief them on this issue. The Committee recommended acceptance of the report. By consent agenda, Mr. McGlumphy moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). By consent agenda, Mr. McGlumphy moved for acceptance of the Utility Committee Report, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - MARCH 8, 2010 The Legislative, Finance, and Administration Committee met on March 8, 2010 with Chairman McGlumphy presiding. Review and Recommendation - Filling of Critical Positions During their meeting of February 23, 2009, members recommended approval of the Hiring Freeze for Fiscal Year 2008-2009, but to allow the hiring of critical positions through the review and approval of the Legislative, Finance, and Administration Committee and City Council. It was suggested that there be a "standing" agenda item to consider the filling of critical positions and, if there are no positions to consider, the item could be removed. Inspector I - Code Enforcement Mrs. Ann Marie Townshend, Director of Planning and Community Development, stated that the employee who anticipated military deployment has informed her that deployment is not planned at this time; therefore, the request is no longer necessary and no further action is required. Utility Maintenance Mechanic I - Public Utilities Mr. Ronald Lunt, Public Utilities Director, explained that, due to the transfer of an employee, it is necessary to hire a Utility Maintenance Mechanic I in the Public Utilities Department. He advised members that three (3) of six (6) departmental employees have left due to retirement or transfer, and if this position is not filled, the City will no longer be able to maintain systems as necessary. Responding to Dr. Jones, Mr. Lunt indicated that advertisement for vacant positions is handled by the Human Resources Department; however, he stated that it may be necessary to advertise in the Wilmington News Journal, particularly for the Utility Maintenance Mechanic II position (see next agenda item), due to the amount of experience required. The Committee recommended that staff be granted permission to recruit for the position of a Utility Maintenance Mechanic I - Public Utilities, as requested by staff.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 15 By consent agenda, Mr. McGlumphy moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). Utility Maintenance Mechanic II - Public Utilities Mr. Lunt explained that, due to the retirement of an employee, it is necessary to hire a Utility Maintenance Mechanic II in the Public Utilities Department. He advised members that three (3) of six (6) departmental employees have left due to retirement or transfer, and if this position is not filled, the City will no longer be able to maintain systems as necessary. The Committee recommended that staff be granted permission to recruit for the position of a Utility Maintenance Mechanic II - Public Utilities, as requested by staff. By consent agenda, Mr. McGlumphy moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). Proposed Ordinance Amendment No. 1 to Proposed Ordinance #2010-05 - Chapter 2 - Administration, Article VI - Other Post-Employment Benefits Fund, Section 2-505 - Medicare Part B Premium Reimbursements During their meeting of January 25, 2010, the Committee recommended adoption of Proposed Ordinance #2010-05 - Chapter 2 - Administration, Article VI - Other Post-Employment Benefits Fund, Section 2-505 - Medicare Part B Premium Reimbursements, as recommended by staff. During the First Reading of Proposed Ordinance #2010-05 at the Regular Council Meeting of February 22, 2010, members were presented Amendment No. 1 for their consideration. During this meeting, Mr. Hogan stated that since the Committee meeting was held, a member of City staff submitted some suggested language which he felt would make the ordinance more appropriate and agreeable. Members were provided the ordinance with the proposed amendments that are reflective of the suggestions, as follows: amendment of lines 12 and 13, by eliminating "can be changed or eliminated at any time" and inserting "can be reevaluated annually for changes or elimination"; and lines 17 and 18, by eliminating "or resolution" and inserting," with a public hearing," and "and with a 90-day written notice to those employees who are currently receiving or who are eligible for Medicare Part B Reimbursement,". Mr. Hogan explained that the ordinance presented for consideration at this time had been amended since the Legislative, Finance, and Administration Committee made its recommendation. After much discussion, Council referred Amendment #1 to Ordinance #2010-05 back to the Legislative, Finance, and Administration Committee for their review and recommendation. The Committee recommended reaffirming the Committee action of January 25, 2010 for adoption of Ordinance #2010-05 with the original language. By consent agenda, Mr. McGlumphy moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). (The First Reading of the ordinance will take place during the latter part of the

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 16 meeting). By consent agenda, Mr. McGlumphy moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). MONTHLY REPORTS - JANUARY 2010 By motion of Mr. McGlumphy, seconded by Mr. Leary, the following monthly reports were accepted by consent agenda: CIP Dover Fire Department Report EVALUATION OF BIDS - UNDERGROUND UTILITY LOCATING SERVICES Mr. Anthony DePrima, City Manager, stated that the Public Utilities Department is a member of Utilities Service Protection Center of Delmarva, Inc., also known as Miss Utility, which is a call center that receives excavation requests from all parties and notifies the Utilities of utility locating requests in our service area. He advised members that, historically, the City of Dover Public Utilities Department has performed the locating function with staff employees; however, both staff utility locators recently retired. To determine the lowest cost alternative, staff evaluated the cost of in-house personnel versus contracting out the locating service for electric, water, wastewater and communication facilities. Mr. DePrima stated that the City would save $2,300 - $8,800 annually by contracting this service. He noted that ticket requests decline during the winter months, and it is expected that two (2) contracted employees will not be needed during this time; therefore, staff is confident that there will be an increased savings. Mr. DePrima indicated that proposals were solicited and advertised according to City Policy by the City=s Contract and Procurement Manager under RFP #10-0029DPU, and submissions were received from five (5) contractors. The proposals were evaluated based on experience, response time, geographic knowledge, ticket management, and cost, and the highest evaluated proposal was also the lowest cost proposal received from Underground Locating Services (ULS). Mr. DePrima noted that the contractor will be responsible for locating underground utilities owned by the City of Dover and will be liable for any utilities damaged due to incorrect locating. Additionally, the contractor will manage the Miss Utility ticket process, which includes receiving the tickets directly from Miss Utility, marking the involved utilities, and entering the information in the web-based reporting system. The City of Dover will be responsible for providing the contractor with periodic updated prints and files of newly installed utilities. Mr. DePrima stated that the proposed contract from Underground Locating Services (ULS) is for a period of three (3) years, with two (2) one-year extensions, and includes an annual increase of 2% the second year, 1% the third year, 2% the fourth year, and 1% the fifth year. He noted that the Public Utilities Department has been using ULS for a few months, and their performance to date has been very good. Staff recommended awarding a three (3) year contract with two (2) one-year extensions to Underground Locating Services, LLC.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 17 Mr. Hogan moved for approval of staff=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote (Mr. Slavin absent). APPOINTMENT OF BOARD OF ASSESSMENT APPEALS COMMITTEE In accordance with Section 102-181, Board of Assessment Appeals, of the Dover Code, the following appointments were submitted for consideration: Three-Year Terms to Expire March 2013 Thomas Burns (Real Estate Brokerage or Sales) James Galvin (Undesignated) William Garfinkel (Undesignated) Four-Year Terms to Expire March 2014 John Kelly (Accounting) Todd Stonesifer (Real Estate Brokerage or Sales) James Welsh (Property Appraisal/Assessments) Responding to Mr. Ruane, Ms. Cheryl Russell, City Assessor, advised members that there were previously three (3) members who served on the Appeals Committee. She stated that the ordinance requires no less than three (3) members, and since the majority of the members have full-time employment and may not be able to attend every meeting, the six (6) members would help assure that the minimum number of members would be in attendance. She also advised members that the six (6) individuals submitted had requested the opportunity to serve on the Committee. Although there are members who are active in the real estate community, Ms. Russell did not feel there would be any potential conflicts. She assured members that a meeting would be held with the Board prior to the review of any appeals and that she would explain the requirement for abstaining from voting if there are any conflicts of interest. Mr. Hogan felt that with six (6) members there is a possibility of having tie votes and also noted the difficulty of filling a large number of vacancies on the Committee when the terms expire. He suggested appointing five (5) members, with one (1) member being appointed for a one (1) year term, one (1) member for a two (2) year term, one (1) member for a three (3) year term, and two (2) members for a four (4) year term. This would ease the transition for new appointees and present the need to only make one (1) or two (2) appointments each year. Mr. Leary moved for approval of the appointments to the Board of Assessment Appeals Committee as submitted, seconded by Mr. McGlumphy. In response to Mr. Salters and others who relayed concerns regarding the even number of Board members and what was perceived to be an excessive number of appointees from the real estate industry, Mr. Leary questioned the reluctance to have highly qualified volunteers from a particular field serving on a Board since they have expertise in the subject. After speaking with the City Solicitor, Mr. Anthony DePrima, City Manager, explained that, although there will be six (6) members serving on the Board, staff would not have to empanel all members for all hearings. Assuming all members could make the hearing, he suggested that one (1) member would be requested to "sit out" and that the members could be rotated in this

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 18 manner. This could be accomplished simply by the City Assessor having an understanding that there would be only five (5) members serving at a hearing. For clarification, Council President Williams stated that the City Solicitor indicated that an amendment to the motion would not be required to request the City Assessor to empanel only five (5) members for each hearing. Mr. Leary moved for a call for the question, seconded by Mrs. Russell and carried by a roll call vote of seven (7) yes, two (2) no (Mr. McGiffin and Mr. Ruane), and one (1) absent (Mr. Slavin). The motion for approval of the appointments to the Board of Assessment Appeals Committee as submitted was carried by a roll call vote of five (5) yes, three (3) no (Mr. McGiffin, Mr. Salters, and Mr. Ruane), and one (1) absent (Mr. Slavin). REZONING REQUESTS/FIRST READINGS Requests were received to rezone the following properties. Prior to amending the zoning ordinances and zoning map of the City of Dover, a public hearing is required. Property Located at 1059 Horsepond Road, Owned by David and Sherry Blake A rezoning request for property located at 1059 Horsepond Road (east side of Horsepond Road, south of Lafferty Lane), consisting of 1.8612+/- acres, owned by David and Sherry Blake. The property is currently zoned M (Manufacturing) and AEOZ (Airport Environs Overlay Zone). The proposed zoning is C-3 (Service Commercial) and AEOZ. By motion of Mr. McGlumphy, seconded by Mr. Salters, Council unanimously referred the following rezoning request to the Planning Commission on April 19, 2010 and set a public hearing before City Council for May 24, 2010 at 7:30 p.m. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of Proposed Zoning Ordinance #2010-09 as read by the City Clerk, by title only, as follows: AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 1059 HORSEPOND ROAD. Property Located at 1169 South State Street, Owned by Young Men=s Christian Association of Delaware, Inc. (YMCA) A rezoning request for property located at 1169 South State Street (east side of South State Street, north of Roosevelt Avenue/Wyoming Avenue), consisting of 0.6899+/- acres, owned by Young Men=s Christian Association of Delaware, Inc. (YMCA). The property is currently zoned RG-O (General Residence and Office) and the requested zoning is IO (Institutional and Office). By motion of Mr. McGlumphy, seconded by Mr. Hogan, Council unanimously referred the following rezoning request to the Planning Commission on April 19, 2010 and set a public hearing before City Council for May 24, 2010 at 7:30 p.m.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 19 In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of Proposed Ordinance #2010-10 as read by the City Clerk, by title only, as follows: AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 1169 SOUTH STATE STREET. FIRST READING - PROPOSED ORDINANCE #2010-05 Council President Williams reminded the public that copies of the proposed ordinance are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Final action by Council on the proposed ordinance will take place during the Council Meeting of April 12, 2010. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of Proposed Ordinance #2010-05 as read by the City Clerk, by title only, as follows: CHAPTER 2 - ADMINISTRATION, ARTICLE VI - OTHER POST-EMPLOYMENT BENEFITS FUND, SECTION 2-505 - MEDICARE PART B PREMIUM REIMBURSEMENTS FINAL READING - PROPOSED ORDINANCES The First Reading of the following proposed ordinances was accomplished during the Council Meeting of March 8, 2010. Proposed Ordinance #2010-06 Amending Chapter 102 - Taxation, Article VI - Exemptions; Board of Assessments, Section 102-183 - Tax Exemptions for Senior Citizens, Subsection (B) - Qualifications, Paragraph (3) - Exclusions from Income Mr. Hogan moved that the Final Reading of the proposed ordinance be acknowledged by title only, seconded by Mr. McGiffin and unanimously carried. By motion of Mr. McGiffin, seconded by Mr. Leary, Council, by a unanimous roll call vote (Mr. Slavin absent), adopted Ordinance #2010-06 as follows: BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That Chapter 102 - Taxation, Article VI - Exemptions; Board of Assessment Appeals, Section 102-183 - Tax Exemptions for Senior Citizens, Subsection (b) - Qualifications, Subsection (3) - Exclusions from Income, be amended to read as follows: Sec. 102-183. Tax exemption for senior citizens. (a) Authority. This section is adopted to implement 22 Del. C. § 1001 et seq., granting exemptions from municipal taxation on real property for persons 65 years of age or over. Compliance must be made with such chapter 10 and this section in order to qualify for such exemption.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 20 (b) Qualifications. The exemption shall be for real property owners 60 years of age or over. If qualified, their real property shall be exempt from municipal taxation to the extent of the first $50,000.00 of assessed valuation. This exemption shall be subject to the following: (1) Owner resides alone. If the income of a property owner who resides alone exceeds the sum of $15,851.00 (2008) for the income tax year immediately preceding the date of making an application for the exemption, then the exemption shall not be granted. The maximum income limit stated in the preceding sentence shall increase each year by the same percentage as the cost of living adjustment granted to recipients of Social Security retirement benefits. (2) Spouses reside together. If the income of a property owner and spouse who reside together exceeds the sum of $22,192.00 (2008) for the income tax year immediately preceding the date of making an application for the exemption, then the exemption shall not be granted. The maximum income limit stated in the preceding sentence shall increase each year by the same percentage as the cost of living adjustment granted to recipients of Social Security retirement benefits.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 21 (3) Exclusion from income. In computing income of the property owner in order to determine entitlement for the deduction, Social Security benefits; railroad pensions and federal civil service retirement (not to exceed the sum of $35,190 (2010) - 150 % of the Social Security maximum benefit. The civil service retirement income exclusion shall be based each year on the maximum Social Security benefit at 150%), shall not be considered as income. ADOPTED: MARCH 22, 2010 Proposed Ordinance #2010-07 Amending Chapter 98 - Streets, Sidewalks and Other Public Places, Chapter 110 - Utilities, Article III - Water Service, Chapter 110 - Utilities, Article IV - Sewer Service, and Appendix F - Fees and Fines Mr. Salters moved that the Final Reading of the proposed ordinance be acknowledged by title only, seconded by Mr. Leary and unanimously carried. By motion of Mr. McGlumphy, seconded by Mr. Salters, Council, by a unanimous roll call vote (Mr. Slavin absent), adopted Ordinance #2010-07 as follows: BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That Chapter 98 - Streets, Sidewalks and Other Public Places, be re-titled as Streets, Sidewalks, Storm Sewers and Other Public Places. BE IT FURTHER ORDAINED THAT: That Chapter 98 - Streets, Sidewalks and Other Public Places, Article I - In General, Section 98- 1 - Street department created; purpose, be amended to read as follows: ARTICLE I. IN GENERAL Sec. 98-1. Street department created; purpose. There is hereby created a street department under the general supervision and authority of the city manager, which shall superintend and have authority over the use, construction, condition and lighting of city streets, sidewalks, storm sewers and public places. BE IT FURTHER ORDAINED THAT: That Chapter 98 - Streets, Sidewalks and Other Public Places, be amended by inserting a new Article V - Storm Sewers and Excavations, to read as follows:

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 22 ARTICLE V. STORM SEWERS Sec. 98-161. Definitions. The following words, terms and phrases, when used in this ordinance, shall have the meanings ascribed to them in this article, except where the context clearly indicates a different meaning: Drain means any pipe which carries water in a drainage system. Private storm sewer means any storm sewer not owned by the city. Public storm sewer means any storm sewer owned by the city. Storm sewer means any system used for conveying rain water, stormwater, surface water, condensate, cooling water or similar liquid wastes, exclusive of sewage. Sec. 98-162. Connections. (a) It shall be unlawful for any person to tap or to have tapped any public storm sewer without a permit from the city manager. (b) It shall be unlawful for any person other than the city to tap any public storm sewer. The city shall tap the sewer as described in the permit, and the permittee shall pay the fees and charges based upon unit prices as the city incurs. Sec. 98-163. Public storm sewer design and construction. Public storm sewers shall be designed and constructed according to city specifications, three copies of which shall be on file in the city clerk's office. Sec. 98-164. Prohibited discharges into system. (a) Injurious substances. It shall be unlawful for any person or group of persons to throw, place, or deposit, or attempt to throw, place or deposit, or cause to be thrown, placed or deposited, any article, object or substance in any of the storm sewers or into any of the inlets into the storm sewers of the city, or into any of the streets, lanes, alleys, or gutters of the streets in the city from which such article, object, or substance would be likely to enter into or run into the storm sewers of the city, which object, or substance would injure in any manner said storm sewer system or area into which such storm sewers empty. (b) Definition. Wherever the term "system" is used, such term shall be taken to include, in addition to any other meaning herein indicated, any conduits, reservoirs, ditches, grates, catch basins, storm manholes, gauges, and building or buildings and the attachments thereto wherein any such machinery or parts thereof are kept or stored.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 23 (c) Tar, petroleum, etc. It shall be unlawful to pour, drain or run into the storm sewers of the city, by any method whatsoever, any tar or tar product, or petroleum or petroleum product, or any inflammable substance or material. (d) Protection of equipment. It shall be unlawful to pour or drain into or permit the drainage into any of the storm sewers or storm sewer system of the city any substance or chemical which would hinder the proper functioning of the storm sewer system or in any way negatively impact any related permits held by the city. (e) Garbage, etc. It shall be unlawful to deposit or throw, or cause to be deposited or thrown into any receptacle connected with a public or private storm sewer of the city, any garbage, ashes, cinders, rags, waste of any kind whatsoever or to discharge or permit to be discharged into any private or public storm sewer within the city, anything that will injure such storm sewer or will obstruct the use and operation thereof. Sec. 98-165. Authority to enter and inspect private property. The city manager and his authorized agents shall have the authority to enter upon any lands as may reasonably be necessary to discharge their duties pursuant to this article. Pursuant to the entry, the city manager and his authorized agents shall properly discharge their duties, which may include inspection, conveyance or removal of materials necessary for construction upon the land or improvement or repair of any drain, gutter, storm sewer, manhole or natural watercourse. Sec. 98-166. Violations. (a) Notice. Whenever the city manager or his authorized agents shall determine that a condition exists which violates any portion of this article, the city manager or his authorized agents shall notify the property owner or occupant of the specific violation. (b) Action by city. Unless the condition is remedied within ten days after notice is given, the city may cause the condition to be remedied and assess the cost thereof against the property owner. (c) Payment of cost. Any person violating any of the provisions of this article shall, upon conviction therefore, pay to the city the cost of any of the repairs resulting from the violation and be subject to the penalty provided in section 1-17. Secs. 98-167--98-220. Reserved BE IT FURTHER ORDAINED THAT: Chapter 98 - Streets, Sidewalks and Other Public Places, be amended by renumbering Article V - Excavations as Article VI, renumbering Division 1 - Generally, Sections 98-161 through 98-190 as 98-221 through 98-250 respectively, and renumbering Division 2 - Permit, Sections 98-191 through 98-220 as 98-251 through 98-280 respectively.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 24 BE IT FURTHER ORDAINED THAT: Chapter 98 - Streets, Sidewalks and Other Public Places, be amended by re-numbering Article VI - Parades as Article VII, renumbering Division 1 - Generally, Sections 98-221 through 98- 240 as 98-281 through 98-300 respectively, and renumbering Division 2 - Permit, Sections 98- 241 through 98-280 as 98-301 through 98-340 respectively. BE IT FURTHER ORDAINED THAT: Chapter 98 - Streets, Sidewalks and Other Public Places, be amended by renumbering Article VII - Numbering of Buildings as Article VIII, and renumbering Sections 98-281 through 98-286 as 98-341 through 98-346 respectively. BE IT FURTHER ORDAINED THAT: Chapter 110 - Utilities, Article III - Water Service, Division 1 - Generally, be amended to read as follows: Chapter 110 UTILITIES ARTICLE III. WATER SERVICE* __________ *Charter references: Power of council to operate water plans, subpart A, § 25. __________ DIVISION 1. GENERALLY Sec. 110-61. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Customer means any person supplied with water service by the city. Service line means a water line connected to the water main for the purposes of serving a customer. Water main means any public water line, other than a service line. Water service fees means water use fees. Water tap means the connection of a service line to a water main. (Code 1968, § 32-1; Ord. of 4-8-1974; Code 1981, § 22-177)

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 25

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 26 Sec. 110-62. Water department created. There is hereby created a water department. (Code 1968, § 2-76; Code 1981, § 22-176) Sec. 110-63. Water handbook incorporated by reference. The City of Dover Municipal Water Department's Water Handbook is hereby incorporated by reference into the laws of the city. A copy of the aforesaid handbook shall be filed in the city clerk's office and available to the public for inspection. Sec. 110-64. Sprinkling limitation. When an emergency to the water supply exists, the city manager shall order public water users to limit or stop sprinkling streets, grass or other vegetation. (Code 1968, § 32-12; Ord. of 4-8-1974; Code 1981, § 22-182) Sec. 110-65. Supplying nonusers with city water. It shall be unlawful for any customer purchasing water from the city to supply such water to persons who are not customers or who have no water connections with the public mains. (Code 1968, § 32-19; Ord. of 4-8-1974; Code 1981, § 22-185) Sec. 110-66. Deposit for customers who purchase water for redistribution. Those customers who purchase water for redistribution shall pay a deposit in an amount to be determined by the city manager. (Mo. of 4-8-1974, § X; Code 1981, § 22-186) Sec. 110-67. Private wells. (a) When authorized. It shall be unlawful, and a nuisance for any person to dig, drill or otherwise excavate any well more than 150 feet below the surface of the ground within the city, or one mile thereof, without the permission of the city council given by resolution. No permission shall be given for a well on any property where a potable water supply is available. (b) Shallow wells. Shallow wells may be drilled into and water withdrawn from the unconfined aquifers within the limits of the city, subject to the following: (1) All wells shall require a permit from the state department of natural resources and environmental control or other regulatory agency and the approval of the city setting forth construction details, design yield, and withdrawal rates.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 27 (2) All wells must have the approval of the state board of health or other similar regulatory agency for their intended use. (3) A detailed plan showing the well location, well construction, piping plan and connection details shall be submitted with the application. (4) All wells shall be metered by an approved device and daily pumping records maintained. (5) All water derived from shallow wells shall be used only for boiler makeup, cooling water use, and underground irrigation systems. (6) Any revisions, changes or deviations from the original permit must be in the same manner as the original permit. (7) There shall be no interconnection with any public water supply, nor shall the shallow well be used as a potable water supply for human consumption. (8) Private irrigation systems shall be completely underground, with no connections or outlets that could be used for human consumption. Irrigation shall be by sprinkler heads. (Code 1968, § 32-14; Ord. of 4-8-1974; Ord. No. 2-78, 4-24-1978; Code 1981, § 22-188) Secs. 110-68--110-190. Reserved. BE IT FURTHER ORDAINED THAT: Chapter 110 - Utilities, Article III - Water Service, be amended by deleting Division 2 - Service Lines, Division 3 - Taps, Division 4 - Meters, and Division 5 - Fire Hydrants, in their entirety. BE IT FURTHER ORDAINED THAT: Chapter 110 - Utilities, Article III - Water Service, Division 6 - Rates, Charges and Billing Procedures, be renumbered as Division 2 and amended to read as follows: DIVISION 2. RATES, CHARGES AND BILLING PROCEDURES Sec. 110-191. Water use fees generally. (a) Payment. All water service fees, three copies of which are on file in the city clerk's office, shall be payable to the city manager. (b) Penalty. A penalty as provided for in Appendix F--Fees and Fines shall be added to all water service fees which shall be in arrears for a period in excess of 30 days after the date of rendering the water service bill.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 28 Sec. 110-192. Charge for discontinuing or restoring water service. (a) Maintenance and repair. There will be no charge for turning on or off any service for maintenance and repair purposes if done during normal working hours. There will be a charge as provided for in Appendix F--Fees and Fines, for all service calls after normal working hours. (b) Nonpayment. There will be a service charge as provided for in Appendix F--Fees and Fines paid, together with all current and overdue charges, prior to turning on any service discontinued for nonpayment. (Mo. of 4-8-1974, § IX; Code 1981, § 22-256; Ord. of 8-14-1995) Secs. 110-193--110-205. Reserved. BE IT FURTHER ORDAINED THAT: Chapter 110 - Utilities, Article III - Water Service, Division 7 - Water Impact Fees, be amended by re-numbering it as Division 3. BE IT FURTHER ORDAINED THAT: Chapter 110 - Utilities, Article IV - Sewer Service be renamed Article IV - Sanitary Sewer Service. BE IT FURTHER ORDAINED THAT: Chapter 110 - Utilities, Article IV - Sanitary Sewer Service, Division 1 - Generally, be amended to read as follows: DIVISION 1. GENERALLY Sec. 110-231. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Customer means any person supplied with wastewater service by the city. Dwelling means any single or multiple residence or apartment, including those located over business or commercial establishments. Such term shall not include any hotel, motel or rooming house. Lateral means a sanitary sewer line connected to the sanitary sewer main for the purposes of serving a customer.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 29 Private sanitary sewer means any sanitary sewer not owned by the city. Public sanitary sewer means any sanitary sewer owned by the city. Sanitary sewer means a pipe or conduit for carrying sewage and wastewater to which stormwater, surface water and groundwater are not intentionally admitted. Sewage means any combination of liquid and water-carried wastes originating in buildings. Sewer main means any sewer line, other than a sewer lateral, including but not limited to sewer lines commonly called "interceptors" and "feeders." Wastewater means the liquid and water-carried industrial or domestic wastes, whether treated or untreated, from dwellings, commercial buildings, industrial facilities and institutions, together with any stormwater, surface water and groundwater that may be present though not intentionally admitted, which is contributed into or permitted to enter the sanitary sewer. Wastewater system and sanitary sewer system shall be interchangeable for the purposes of this code. (Code 1968, § 27-1; Code 1981, § 22-127) Sec. 110-232. Wastewater department created. There is hereby created a wastewater department. (Code 1968, § 2-78; Code 1981, § 22-126) Sec. 110-233. Wastewater handbook incorporated by reference. The City of Dover Municipal Wastewater Department's Wastewater Handbook is hereby incorporated by reference into the laws of the city. A copy of the aforesaid handbook shall be filed in the city clerk's office and available to the public for inspection. Sec. 110-234. Rates and charges. (a) Copies on file. Three copies of the wastewater use rates shall be on file in the city clerk's office. (b) Wastewater Fees. All users of the public wastewater system shall be liable for wastewater fees. Bills for wastewater system usage shall be rendered in conjunction with bills for city water service for those persons using both city water and wastewater systems.

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 30 (c) Water rules apply. Discounts, service charges, payment of service charges, discontinuance of service and penalties applying to city water rates shall also apply to public wastewater rates and service. (Code 1968, §§ 27-8--27-10; Code 1981, § 22-133; Ord. of 4-27-1992) Secs. 110-235--110-260. Reserved. BE IT FURTHER ORDAINED THAT: Chapter 110 - Utilities, Article IV - Sanitary Sewer Service, Division 2 - Private Sewage Disposal Systems, be amended to read as follows: DIVISION 2. PRIVATE SEWAGE DISPOSAL SYSTEMS Sec. 110-261. Abandonment. It shall be unlawful for any person to abandon any cess pool, septic system, drainage field, or the like except in the manner approved by the State of Delaware Department of Natural Resources and Environmental Control. Compliance with the abandonment procedure shall occur within 30 days after any notice to abandon and in the manner in which it is to be accomplished. (Code 1968, § 27-14; Code 1981, § 22-146) Sec. 110-262. Correction of unsanitary conditions. It shall be unlawful and a nuisance for the owner or occupant of any property, after the expiration of three days' notice given by a city inspector based upon his inspection and declaration that the owner or occupant's cess pool, septic system, drainage field, or the like is overly full, is in an offensive and noisome condition, to fail to clean and correct those conditions as are set out in the notice. Any cess pool, septic system, drainage field, or the like that is determined to be in a state of disrepair must be addressed in accordance with the State of Delaware Department of Natural Resources and Environmental Control. (Code 1968, § 27-15; Code 1981, § 22-147) Secs. 110-263--110-280. Reserved. BE IT FURTHER ORDAINED THAT: Chapter 110 - Utilities, Article IV - Sanitary Sewer Service, Division 3 - Wastewater Collection Impact Fees, Section 110-282 - Establishment of equivalent dwelling units, Paragraph B - Determination for nonresidential establishments, be amended to read as follows: (b) Determination for nonresidential establishments. Whenever the city imposes or assesses wastewater collection and transmission charges or fees on the basis of EDUs, the

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 31 number of EDUs to be charged shall be determined using the appropriate specific assessment as defined in the most recent impact fee ordinance adopted by the Levy Court of the county. When users propose to discharge wastewater under circumstances other than the specific assessments defined by the county, the city's impact fee shall be calculated by the city engineer based on flow in GPD. In such cases where the impact fee is calculated by flow, each EDU shall be equal to 250 GPD. BE IT FURTHER ORDAINED THAT: Appendix F - Fees and Fines, Chapter 110 - Utilities, Article III - Water Service, Division 6 - Rates, Charges, and Billing Procedures, be amended to read as follows: Chapter 110 - Utilities, Article III - Water Service, Division 2 - Rates, Charges and Billing Procedures Sec. 110-191 Water use fees generally A penalty of 1 1/2 percent or $1.00, whichever is greater, per month shall be added to all water Subsec. (b) Penalty service fees which shall be in arrears for a period in excess of 30 days after the date of rendering the water service bill Sec. 110-192 Charge for discontinuing or restoring water service No charge for turning on or off any service for maintenance and repair purposes if done Subsec. (a) Maintenance and repair during normal working hours; $50.00 for all service calls after normal working hours There will be a service charge of $50.00 paid, together with all current Subsec. (b) Nonpayment and overdue charges, prior to turning on any service discontinued for nonpayment Chapter 110--Utilities, Article III--Water Service, Division 3--Water Impact Fees ADOPTED: MARCH 22, 2010 Council Members Announcements

CITY COUNCIL MEETING OF MARCH 22, 2010 PAGE 32 Mr. McGiffin reminded members to mark their calendars for June 27, 2009 for the next African American Festival. Mr. Ruane advised members that there will be a public workshop on the Wyoming Mill Road Re- Alignment Project held by the Delaware Department of Transportation (DelDOT) at the John Pitts Center at Schutte Park on Wednesday, April 21, 2010 between 4:00 p.m. and 7:00 p.m. The purpose of the workshop is to obtain public input on the realignment of the road that will result in the fully signalized intersection located west of the current intersection of Wyoming Mill and Hazlettville Road. He stated that this is an important project for the City and encouraged the public to attend. On behalf of himself, as well as Mr. McGiffin, Mr. Ruane, Mr. Leary, and the Irish Society, Mr. McGlumphy stated that he was requested to mention to the Mayor that they missed the Irish flag flying on St. Patrick=s Day. Mr. Leary moved for adjournment, seconded by Mr. McGlumphy and unanimously carried. Meeting Adjourned at 8:04 P.M. TRACI A. McDOWELL CITY CLERK All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of March 22, 2010, are hereby approved. CARLETON E. CAREY, SR. MAYOR /TM/jg magC6B9.wpd Exhibits Attached to Original Minutes and File Copy Exhibit #1 - Statement read by Mrs. Sara Herbert Exhibit #2 - Lease Agreement with Garrison Energy, LLC

EXHIBIT #1 Regular Council Meeting of 03/22/2010

EXHIBIT #2 Regular Council Meeting of 03/22/2010

Garrison Energy Center Land Lease Summary The following is a summary of the Option to Lease and notable Exhibits: Option to Lease 1) Garrison Energy Center, LLC (Developer) would have the option to lease approximately 80 acres of land. 2) The Developer would pay $2,800 per year for this option; the City could continue to rent the land for farming activities during this period. Should any field activity be required that resulted in damage to the crops, the Developer would reimburse the farmer for the value of the crops. 3) The term of the option would be for one year with one automatic one year extension (first extension) unless the Developer notifies the City of termination. The Developer could extend the option for one additional year (three years total) provided the Developer has complied with the following stipulations: a. Filed an interconnection request with PJM; b. Filed an air permit application; c. Filed a natural gas interconnection request; and d. Delivered a notice of extension to the City two months prior to the expiration of the first extension. 4) The City shall provide the Developer a preliminary title report within ninety days of the execution of the option to lease. 5) The Developer shall notify the City one hundred twenty (120) days prior to their intent to execute the lease. This lease is included as Exhibit D in this option and shall be executed in substantially the form as included; the tenets of this lease will be outlined later. It is noteworthy that if this option is approved, the City has committed to lease the land to the Developer as outlined in Exhibit D. From the Developers perspective this early commitment is necessary because site control is needed to begin the PJM interconnection process and they will have expended millions of dollars in permitting and design for this specific location. 6) The City agrees to support and cooperate with the developer and commits to not develop any other natural gas fueled power plant facility in the City of Dover during the term of the option to lease. This does not mean another facility could not be built by other parties, only that the City could not participate in the project during this period. 7) The City will have the right, but not the obligation; to purchase energy and capacity from the facility should it be built. Exhibit E of the option includes the general terms and conditions of this potential Power Purchase Agreement should the City wish to purchase energy and capacity from the plant. If the facility is constructed, staff will evaluate the economics of this purchase agreement and bring it before the appropriate parties for discussion should it be warranted. 8) Should the option to lease be approved there may be information exchanged that could be considered confidential, should this information be requested by outside parties this request shall be disclosed to the other contractual party and either contractual party may defend this disclosure at their expense. 1|Page

Garrison Energy Center Land Lease Summary Exhibit D to the Option Agreement – Ground Lease Agreement: As noted in bullet 5 above, the approval of the option to lease automatically gives the Developer the legal ability to execute the lease. The following is a summary of the lease agreement should the Developer execute the lease: 9) The lease would be executed in the substantial form as presented in the option; however, there may need to be minor changes should issues arise between now and the possible execution. For example the acreage of the buffer may need to be adjusted to comply with zoning requirements or similar issues. 10) During the construction the Developer will be leasing approximately 80 acres; this will include Lot 7 where the plant will be built, Lot 6 which will be used as a lay‐down area for the construction materials, and the non‐buildable buffer area. Once the plant is substantially completed, it is anticipated that the leased land will be no less than 35 acres nor more than 40 acres, or the size of contemplated Lot 7. 11) The term of the lease will be thirty years and will include four (4) five (5) year automatic extensions unless terminated by the Developer at the end of the lease or prior to the end of any of the extension periods. 12) The rent will be $700 per acre for the land utilized during construction and for the final lot once that size is determined. There will be an annual adjustment based on the “Consumer Price Index for All Urban Consumers U.S. City Average” as published by the U.S Department of Labor, Bureau of Labor Statistics. 13) At the end of the project the Developer will remove all above ground improvements, any underground facilities used for the storage or movement of fuel oil, and perform a Phase I environmental inspection and resolve any issues as identified in this inspection that were created by the Developer. 14) The City will have the right to purchase the facility (but not the obligation) at the end of the term if it so chooses. 15) The Developer will be responsible for all real and personal property taxes imposed on the project. 16) Disclosure of confidential information is the same as outlined in Bullet 8 above. Exhibit E to the Option Agreement – Power Purchase Agreement: As noted in bullet 7 above, the City will have right, but not the obligation, to purchase energy and capacity from the facility. The following is a summary of the terms of this potential Power Purchase Agreement (PPA): 17) The City would have 120 days after notification to finalize the PPA, plus another 120 days to receive approval from the City Council. 2|Page

Garrison Energy Center Land Lease Summary 18) The power plant facility would be a 150‐300 Mw combined cycle generation plant. 19) The PPA would give the City the option to purchase 25 Mw of capacity and energy for thirty years with a City option to extend this purchase agreement for four additional five year terms. On the fifth anniversary of plant operation the City could contract for an additional 25 Mw of capacity and energy for twenty five years plus four extension options. Lastly, the City could contract for any uncommitted capacity and energy on an ongoing basis. 20) The facility would interconnect with the Delmarva 230 kV transmission system; however, if both parties agree to the additional capital costs and operating requirements, there could be an alternative interconnection to the Dover distribution system. 21) The energy would be delivered on a unit contingent basis, which means that if the facility were shut down due to scheduled or un‐scheduled maintenance the energy would not be delivered. However the project can provide Replacement Capacity and Energy under certain situations. 22) The City will have the right to schedule the energy from the facility whenever requested, subject to the applicable rules and regulations. 23) The charge for the energy would be based on the heat rate (in essence the heat rate is the conversion ratio for fuel being transformed into electricity, or units of fuel inputted per unit of electricity produced), the variable operations and maintenance charge and a start charge (start charge creates a reserve fund for long‐term maintenance). The heat rate cannot be determined until the plant design has been finalized. 24) The capacity payments will include the fixed operation and maintenance costs and cannot be finalized until the plant design has been completed. 25) There are some terms and conditions that have been redacted from the publically released PPA due to the need of the Developer to negotiate PPA’s with other parties. If or when this information is publically disclosed has not been determined at this time. This concludes the high‐level summary of the option and Exhibits, there are many other conditions and terms in the agreement that are pertinent but not discussed within this summary. 3|Page