COUNCIL Minutes

ANNUAL COUNCIL MEETING The Annual Council Meeting was held on May 10, 2010 at 7:30 p.m. with Mayor Carey presiding. Council members present were Mr. Leary, Mrs. Russell, Mr. McGlumphy, Mr. Slavin, Mr. McGiffin, Mr. Hogan, Mr. Salters, Mr. Ruane, and Mrs. Williams. Council staff members present were Police Chief Hosfelt, Ms. Russell, Mrs. Mitchell, Mrs. Townshend, Fire Chief Christiansen, Mr. DePrima, City Solicitor Rodriguez, and Mrs. McDowell. The invocation was given by Reverend Richard M. Avant of Calvary Baptist Church, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. McGlumphy moved for approval of the agenda as presented, seconded by Mr. Salters and unanimously carried. ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF APRIL 26, 2010 The Minutes of the Regular Council Meeting of April 26, 2010 were unanimously approved by motion of Mr. Leary, seconded by Mr. McGlumphy and bore the written approval of Mayor Carey. PROPOSED RESOLUTION NO. 2010-02/PRESENTATION - TIMOTHY A. SLAVIN The City Clerk read the following Resolution into the record: WHEREAS, Timothy A. Slavin was duly sworn as Councilman of the Third District on May 10, 2004 and served with distinction until May 10, 2010; and WHEREAS, during his six years of service to the citizens of Dover, Timothy A. Slavin served as Chairman of the Safety Advisory and Transportation Committee; the Legislative, Finance, and Administration Committee; the Construction Code Board of Appeals; the Education Liaison Committee; and the Sex Offenders Legislation Review Committee; as Co-Chair of the Services to Seniors Committee; as Secretary of the Dover 4th of July Committee; and as a member of the Utility Committee; the Downtown Dover Development Corporation; the Downtown Dover Partnership; and the Haggerty & Haggerty Ad-Hoc Review Committee; and as Liaison to Kent County (City/County Committee); and WHEREAS, throughout his tenure, Timothy A. Slavin has provided innovative solutions to the multitude of complex problems encountered by the municipality; and has displayed a professional approach to his duties and a quality of leadership that fostered civility and the respect of his colleagues; and WHEREAS, Timothy A. Slavin has always placed the concerns and views of his constituents in the forefront and will always be remembered as a voice of the people. NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council recognize that Timothy A. Slavin will be sorely missed and express their sincere appreciation to him and his

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 2 family for the dedicated years of service and personal sacrifices made on behalf of the City of Dover. BE IT FURTHER RESOLVED that the Mayor and Council wish Councilman Slavin and his family success in all future endeavors 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 to Timothy A. Slavin. ADOPTED: MAY 10, 2010 Mr. McGiffin moved for adoption of Resolution No. 2010-02, seconded by Mrs. Russell and unanimously carried. Mayor Carey and members of Council presented Councilman Slavin with the Resolution, a Dover Cup, and a Key to the City. Mr. Slavin read the following statement into the record: "To the Mayor, members of Council, and to all those who are gathered here this evening and watching on television: It is difficult to convey my feelings of deep gratitude for the honor of having served our city as a member of City Council for the past six years. I would like to extend my thanks to the Mayor and those members of our current Council, who I have worked with side-by-side on many, many issues. I appreciate your kind words, but more so, I appreciate and value the commitment you have to our City. I can attest that each one of these members, to a person, works many hours long after the reporters file their stories and long after the cameras are turned off and packed up. They give up much to do this job, and we all owe them a debt of thanks. I know that my successor, Councilman-Elect David Bonar, will continue a similar work ethic with the job, and I pledge my support to him as he begins to represent the Third District, and I promise, here with the cameras rolling, that I will forward all the constituent complaints to him in a timely manner! Dave, you have the honor of not only having the best district in the city, but also having one heck of a Councilman to work with - Councilman Jim McGiffin. I would also like to thank and recognize those former elected officials I worked with here in this Chamber: former Mayor Steve Speed, and those former Council members I worked with for the past six years—Carleton Carey, when he was an at-large Council member; Councilman Bob Sadusky; Councilman Rob Ritter; my predecessor, Councilman Bill Truitt; and, of course, Councilman John Pitts. It was from Mr. Pitts that I learned that, while there may be knowledge in words, there is often wisdom in silence, and that is something I will carry with me for all time.

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 3 I would also like to take a moment just to thank the employees of the City of Dover—every one of them. In a word, you are inspiring. You not only do your jobs well and with great integrity, but you do so with a pride that shows every day. We live in a great city, thanks to your efforts each and every day. I don't want to single out any single group because I do feel that the spirit of public service is noticed at every level, but I want to offer a special thanks to the men and women of the Police and Fire Departments. It has been my honor to represent your interests on Council, and I thank each and every one of you for the courage you bring to your jobs everyday. The constituents of the Third District are a truly amazing resource in our City, as Councilman McGiffin can attest. Our District contains more homeowners associations, and it seems like each one of them is very active and very engaged. People in Wild Meadows, Towne Point, White Oak, the Wesley College area, Persimmon Park Place, and Acorn Farms (to name a few - I know I=m leaving some out) have been a great joy to work with, and I thank them, not only for their civic duty, but for the many nights we met in their homes to talk about issues. But I would only tell half the story if I didn't include some of the special interest groups that have appeared before us, that have filled up this chamber, that have filled up our voice mail boxes and that have filled up our email boxes—boat and RV owners; dangerous breed of dog owners; soccer players; people who live on Artis Drive, in Schoolview, in Nottingham Meadows; Girl Scouts; Boy Scouts; college students; and certainly the advocates for those who can't advocate for themselves. Having a front row seat in the parade of American democracy that comes by every day has been a singular honor, and one that I won't ever forget. Thank you for this honor. Thank you for preserving our American democracy and I wish you Godspeed in your duties. Thank you." On behalf of the Dover Fire Department, Fire Chief Christiansen presented Mr. Slavin with a plaque in appreciation for his continued support during the past six (6) years. OATHS OF OFFICE - CITY COUNCIL The Honorable Henry duPont Ridgely, Justice of the Supreme Court, administered the Oath of Office to members of City Council, as follows: Mayor - Carleton E. Carey, Sr. Council - First District - Beverly C. Williams Council - Second District - William P. McGlumphy Council - Third District - David L. Bonar Council - Fourth District - Sophia R. Russell ELECTION OF COUNCIL PRESIDENT/VICE-MAYOR

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 4 Mr. McGlumphy moved to nominate Beverly C. Williams to serve as Council President/Vice-Mayor for 2010/11, seconded by Mr. Bonar. Mr. McGiffin moved to nominate Kenneth L. Hogan to serve as Council President/Vice-Mayor for 2010/11, seconded by Mr. Leary. Mr. Leary moved to close nominations for Council President/Vice-Mayor for 2010/11, seconded by Mr. Bonar and unanimously carried. Mrs. Russell moved to use the Australian (secret) ballot method of voting, seconded by Mr. Ruane. Mr. McGiffin relayed his opposition to the use of the secret ballot, stating that he felt it was not necessary in this matter. The motion to use the Australian (secret) ballot method of voting failed by a roll call vote of six (6) no and three (3) yes (Mrs. Russell, Mr. McGlumphy, and Mr. Ruane). The motion for Beverly C. Williams to serve as Council President/Vice-Mayor for 2010/11 failed by a show of hands of seven (7) no and two (2) yes (Mr. McGlumphy and Mrs. Williams). The motion for Kenneth L. Hogan to serve as Council President/Vice-Mayor for 2010/11 carried by a show of hands of seven (7) yes and two (2) no (Mr. McGlumphy and Mrs. Williams). Mayor Carey thanked everyone who participated in the Oath of Office Ceremony and explained the importance of working as a team. He recognized the attendance of Dr. William Johnston, President of Wesley College; Dr. Harry Williams, President of Delaware State University; Mr. Gary Patterson, Executive Director of the Downtown Dover Partnership; Kent County Levy Court Commissioners Allan Angel and Bradley Eaby; U. S. Senator Thomas Carper, and Col. Randal Bright, 512th Airlift Wing Commander from Dover Air Force Base. Mr. Bonar advised members that 30 years ago, he was honored to have taken an Oath of Office to serve as Councilman for the Second District for the City of Dover. He relayed his appreciation for the people of the Third District for giving him the opportunity to serve them in this capacity. He thanked his wife, Dr. Patricia Patterson, and friends who helped him in this endeavor. Senator Carper congratulated those that were newly elected and those that were returning to serve, noting the honor it is to serve as a public official. He stated he looked forward to a continued partnership with the State and local governments. RECESS

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 5 Mr. Salters moved to recess to take photographs of the Mayor and members of City Council, seconded by Mr. Leary and unanimously carried. Meeting recessed at 8:04 p.m. Mr. Bonar moved to reconvene, seconded by Mr. Leary and unanimously carried. Meeting reconvened at 8:23 p.m., with Mayor Carey presiding. Council members present were Mr. Leary, Mrs. Russell, Mr. McGlumphy, Mr. Bonar, Mr. McGiffin, Mr. Hogan, Mr. Salters, Mr. Ruane, and Mrs. Williams. STATE OF THE CITY MESSAGE - MAYOR CARLETON E. CAREY, SR. Mayor Carleton E. Carey, Sr. presented the State of the City Message (Exhibit #1). CONSENT AGENDA Mr. Salters moved for approval of the consent agenda, seconded by Mr. Hogan and carried by a unanimous roll call vote. UTILITY COMMITTEE REPORT - APRIL 26, 2010 The Utility Committee met on April 26, 2010 with Chairman Ruane presiding. Cost Benefit Analysis/Proposed Implementation Plan for In-House Recycling Program Mr. Anthony DePrima, City Manager, reminded members that the City=s curbside recycling contract with the Delaware Solid Waste Authority (DSWA) will expire on June 30, 2010. DSWA will no longer provide this service. As a result, staff has analyzed two (2) options using a three (3) year timeline. He provided members with revised spreadsheets (attachment to Committee minutes) and explained the alternatives, as follows: Mr. DePrima noted that the information previously provided to members indicated that staff=s recommendation was for the City to implement an in-house recycling program, since this was considered the more affordable alternative. However, he advised members that there have been some price revisions from the contractor due to the State=s recycling legislation. He reminded members that this legislation mandates that the DSWA provide cans to the cities. Prior to the adoption of this legislation, cans were to be provided to municipalities if they operated a recycling program, but not necessarily if the program was contracted out. As a result, staff contacted the contractor and requested that the price be adjusted to reflect that the cans would not be provided by the contractor. Considering this price adjustment, Mr. DePrima advised members that staff=s conclusion regarding this matter has changed. Staff recommended utilizing a private contractor for the recycling program. Mr. DePrima stated that a final Request for Proposal (RFP) will be presented to members for their review and recommendation.

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 6 Mr. Scott Koenig, Public Services Manager/Director of Public Works, reviewed the Curbside Recycling Alternative spreadsheet provided to members (attachment to Committee minutes). He noted that the original spreadsheet provided in the packet depicted an estimated savings of $130,000 to the City over a three (3) year period through utilizing an in-house recycling program. He explained that when the original RFP was prepared to solicit bids from private contractors, it required contractors to provide recycling containers. However, Mr. Koenig noted that it is now anticipated that the DSWA will provide approximately 7,700 recycling containers to the City, with an estimated value of $350,000. Staff requested that Inland Service Corporation (who provided the lowest cost proposal) resubmit prices after eliminating the cost of containers. As a comparison, Mr. Koenig advised members that the original lowest cost proposal was $1.74 per pickup and that the revised lowest cost proposal is $1.18 per pickup. Taking this into consideration, he stated that the City would actually save approximately $250,000 by utilizing a private contractor versus providing the service in-house. He indicated that staff would meet with Inland Service Corporation to discuss their proposal further. Staff recommended that authorization be granted to negotiate with Inland Service Corporation further to develop a service contract to provide curbside recycling services for the City, to be presented to City Council for final approval. Although this particular matter will not be brought back to the Committee, Mr. Ruane noted that there are additional issues that warrant further review by the Committee. As an example, he noted that Item #6, under "other considerations" on the action form, suggests the need for the development of a "Solid Waste" Utility Fund. Responding to Mr. Ruane, Mr. Koenig stated that the DSWA accepted the budget of $80 per ton for municipal solid waste. There is a rebate to the contract users in the amount of $8 per ton; therefore, the net increase will go from approximately $61.50 up to $72.00. Based on this information, Mr. Ruane noted the necessity of making every effort possible to divert solid waste from the landfills and that recycling would assist in this regard. The Committee recommended authorizing staff to negotiate with Inland Service Corporation further to develop a service contract for providing curbside recycling services for the City, to be presented to City Council for final approval. Mr. DePrima clarified that the City of Dover, along with six (6) other municipalities that are direct contract users with the DSWA, is continuing discussions regarding their rate structures. He stated that a presentation was made last week to the DSWA Board of Directors and that they have authorized their staff to continue discussing the possibility of a different rate structure. In response to Mr. Ruane, Mr. DePrima stated that there will be additional amendments to the State=s recycling legislation. He advised members that the "match" requirements have been eliminated from the proposed legislation, as previously reported during the Committee meeting

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 7 of April 12, 2010. He noted that it has been determined that an applicant can be "retroactive" and that no additional language in this regard is necessary, explaining that applications for start-up costs would be accepted regardless of when they actually occurred. Mr. Ruane moved to authorize staff to negotiate with Inland Service Corporation to develop a service contract for providing curbside recycling services for the City, to be presented to City Council for final approval once the negotiations have been completed, seconded by Mr. Hogan. Mrs. Williams expressed concern with the action since the General Assembly has not made a final decision regarding this matter, explaining that it may be premature for the City to negotiate a binding agreement before a final decision is made by the General Assembly. Responding to Mr. McGlumphy, Mr. Ruane indicated that recycling would be voluntary for households; however, it would be mandatory on the part of the State for the City to have a program in place. Mr. Ruane reminded members that DSWA is raising rates by 40% at the landfill. He stated that, as a result, the City has a responsibility to eliminate as much trash as possible before transporting to the landfill, not only for environmental reasons, but also for the cost savings, noting that every ton saved from the landfill equates to $80. He also noted that there has been a high rate of participation in the recycling program by residents. Responding to Mrs. Williams, Mr. Ruane stated that, although participation in the program is voluntary, the costs for the program will be shared by all residents. He stated that pending legislation regarding this matter has passed the Senate and is currently before the House for consideration, with a vote expected on Tuesday. The City participated in amending the legislation to include funds to assist municipalities in managing the recycling program. Mrs. Williams reiterated her concern that the City is taking action prior to final action by the State. Mr. McGiffin felt that there was no inherent conflict in considering the proposal for the City to provide recycling services, irrespective of the actions of the General Assembly. On a call for the question by Mr. Salters, the motion to authorize staff to negotiate with Inland Service Corporation to develop a service contract for providing curbside recycling services for the City, to be presented to City Council for final approval, was unanimously carried. FY 2011 Five-Year Capital Investment Plan (CIP) and PACE Plant Valuation and Recommendations Mr. Anthony DePrima, City Manager, introduced Mr. H. Holt Bradshaw and Mr. Greg Simmons of PACE Global Energy Services, and Mr. Vince Scire, of North American Energy Services (NAES) Corporation, serving as Plant Manager for McKee Run. Mr. Bradshaw reviewed a Presentation of the Plant Life Strategy (attachment to Committee minutes).

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 8 Members were provided a FY 2011 Five-Year Capital Investment Plan (CIP) for their consideration, which included new projects that were depicted in highlight. Responding to Mr. Ruane, Mr. Scire indicated that a majority of the projects will have some effect on regulatory compliance, and this is dealt with on a day-to-day basis. The Committee recommended acceptance of the FY 2011 Five-Year CIP and PACE Plant Valuation and Recommendations Report. By consent agenda, Mr. Salters moved for approval of the Committee=s recommendation, seconded by Mr. Hogan and carried by a unanimous roll call vote. Review of Utility Related CIP=s (Electric and Water/Wastewater) Members were provided a Project Tracking Report, as of February 28, 2010, for the Utility (Electric and Water/Wastewater) Related Capital Investment Plan (CIP). The Committee recommended acceptance of the Utility Related CIP=s Report. By consent agenda, Mr. Salters moved for approval of the Committee=s recommendation, seconded by Mr. Hogan and carried by a unanimous roll call vote. PACE Global Contract Amendment #2 Mr. Ronald Lunt, Public Utilities Director, reminded members that on May 4, 2006, the City of Dover (City) entered into an Energy Management Agreement with Pace Global Asset Management, LLC (PACE) to assist the City with its energy procurement, energy sales, purchase of fuels, establishment and management of risk policies, development and management of hedging protocols, and related energy procurement challenges. On December 3, 2007, this contract was amended whereby the City converted the agreement to a five (5) year agreement, defined and monetized the early termination clause, reduced the annual fee, and capped the incentive fee. Mr. Lunt advised members that, in November of 2009, the City approached PACE to discuss a reduction in fees. Since PACE has put into place a system of operation to streamline their processes, has gained a better understanding of the agreement requirements, and understands the financial challenges related to a degradation of energy sales, PACE agreed to reevaluate the costs associated with the management of the agreement. Mr. Lunt stated that, subsequent to this conversation, the City and PACE have been negotiating amendments and have reached a tentative agreement on the following contract changes: Contract Term, Sections 2.1 and 2.2 • The Agreement will still terminate on June 30, 2011; however, PACE will submit an Extension Proposal by September 30, 2010. The City must respond to this Proposal by

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 9 January 1, 2011, or the Agreement will automatically extend for an additional year. • Neither Party may terminate the Agreement for convenience prior to the expiration date. Base Fees, Section 8.1 • The monthly fee for services from July 1, 2010 through June 30, 2011 will be reduced to $141,666.67, compared to the previous rate of $166,666.67. This will result in a annual fee reduction of $300,000. • The monthly fee would also be benchmarked to the actual load and reduced by the percentage difference between these two quantities. The benchmark would be based on annual sales of 788,808 MWh; the latest City budget estimate is 738,215 MWh. If these predictions are realized, an additional annual savings of over $110,000 could result.

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 10 Incentive Fees, Section 8.2 • Clarified that the "other supply costs" incentive rate will be reduced from $7.50 to $5.50. • The bonus cap will be reduced from the previous $1M to $700,000. Staff recommended that the City Manager be authorized to execute Amendment #2 to the Energy Management Agreement with Pace Global Asset Management, LLC, as presented. The Committee recommended that the City Manager be authorized to execute Amendment #2 to the Energy Management Agreement with Pace Global Asset Management, LLC, as presented. By consent agenda, Mr. Salters moved to authorize the City Manager to execute Amendment #2 to the Energy Management Agreement with Pace Global Asset Management, LLC (Exhibit #2), as recommended by the Committee. The motion was seconded by Mr. Hogan and carried by a unanimous roll call vote. Electric Service Handbook Revision - Customer Service Related Revisions (As Requested by the Committee on April 12, 2010) Mr. Anthony DePrima, City Manager, reminded members that during their meeting of April 12, 2010, staff presented revisions to the Electric Service Handbook. At that time, several members requested clarification or further documentation regarding revisions to the Handbook related to Customer Services. As a result, staff provided members responses to their concerns for their review. Mrs. Teresa Tieman, Senior City Administrator, introduced Mrs. Kathy Divver, Customer Service Manager, and Mrs. Corinne Mosher, Customer Service Supervisor, who were present to address any further concerns. Mr. Hogan reiterated his concern regarding the ability to provide electric service to individuals purchasing a property when settlement occurs late in the day. Responding, Mrs. Tieman noted that the transfer of service for a settlement can be done as soon as the purchaser has a signed agreement of sale. Referring to the pamphlets provided, Mr. Ruane suggested that all pamphlets include a revision date. He also suggested that the "Credit Information" pamphlet reference the Handbooks, both Water and Electric, for further and specific details. In addition, he noted that there is an explanation of "Your Bill" on the "Credit Information" pamphlet and that the "Customer Service" pamphlet provides an outline of the bill and suggested either that these items be inclusive or that staff assure provision of both pamphlets. Mr. Ruane also suggested that the Green Energy Adjustment be mentioned in the pamphlets. The Committee recommended acceptance of staff=s responses to the Committee=s concerns and approval of the Electric Service Handbook Revision - Customer Service Section.

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 11 By consent agenda, Mr. Salters moved for acceptance of staff=s responses to the Committee=s concerns and approval of the Electric Service Handbook Revision - Customer Service Section (Exhibit #3), as recommended by the Committee. The motion was seconded by Mr. Hogan and carried by a unanimous roll call vote. PACE/NAES Monthly Report (February and March) Due to time constraints, Mr. Ruane requested that the PACE/NAES Monthly Reports for February and March be deferred until the next Committee meeting. Mr. Hogan moved for acceptance of the Utility Committee Report, seconded by Mrs. Russell and unanimously carried. LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - APRIL 26, 2010 The Legislative, Finance, and Administration Committee met on April 26, 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. Three (3) Police Officers Members considered a permission to recruit three (3) police officers. Chief Hosfelt reviewed the request and reminded members that the Police Department=s authorized strength is 91 officers. He explained that it is essential for the Department to maintain personnel to provide all levels of safety for the citizens of Dover. Due to three (3) recent retirements, the number of officers has dropped to 87; therefore, the Department is currently recruiting to hire certified officers. Chief Hosfelt stated that, if a certified officer is hired, the Department and the City would immediately reap the benefit, as attendance at the Police Academy would not be required and there would be no training costs. Chief Hosfelt stated that one (1) of the retirees, Cpl. Marc Gray, will remain on payroll until July 15, 2010, and requested that Committee members authorize the replacement of the officer on that date. He also advised members that these positions must be filled in order to remain compliant with the staffing provisions of the Community Oriented Policing Service (COPS) Grant, which City Council accepted on September 14, 2009. Failure to replace these officers would put the Department and the City in violation of the COPS Grant requirements for the current budget year. Responding to Mr. McGlumphy, Mr. DePrima advised members that, traditionally, recruitment

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 12 requests are not submitted for consideration until after the current employee has fully retired. He recommended authorizing two (2) positions to be filled at this time and that the remaining vacancy be brought back for consideration once the employee has fully retired. The Committee recommended that staff be granted permission to recruit for two (2) Police Officers and that the remaining vacancy be brought back for consideration when appropriate. By consent agenda, Mr. Salters moved for approval of the Committee=s recommendation, seconded by Mr. Hogan and carried by a unanimous roll call vote. Presentation - Comprehensive Annual Financial Report - Fiscal Year Ended June 30, 2009 (Continuation of April 12, 2010 Presentation at the Request of Staff) During their meeting of April 12, 2010, members were provided a Presentation of the Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ended June 30, 2009 and acceptance of the CAFR was recommended. Mrs. Donna Mitchell, Controller/Treasurer, reminded members that, due to time constraints on April 12, 2010, the review of the CAFR was conducted quickly, and she requested the opportunity to review Pages 10 and 11 of the presentation (attachment to Committee minutes), relative to the Pension and Other Post-Employment Benefit (OPEB) Trust Funds. Mrs. Mitchell reviewed the details provided on Page 10 titled "FY 11 - Transfer to Pension Trust" and the 2009 column "Contributions & Non-Investment Receipts" in the amount of $2.8M, which represents the City=s normal costs (4.15%) plus approximately 23% for unfunded liability. She advised members that the amount that will be shown as a transfer, previously mentioned, is the unfunded liability portion. Mrs. Mitchell explained that the benefits will only show the 4.15% normal costs, and the unfunded liability will be handled as a transfer from the three (3) major funds to the Pension Trust Fund and will no longer be embedded in the pension costs. She advised members that this change will be reflected in the upcoming FY 2011 Budget. Mrs. Mitchell further reviewed the details provided on Page 10 titled "Net OPEB Obligation at June 30, 2008" and noted that there is a $0 beginning balance, since the new Government Accounting Standards Board (GASB) accounting standard was not required to be implemented until June 30, 2009. The annual required contribution is $6.2M, of which $4M is General Fund and approximately $2.2M is Water/Wastewater and Electric Utilities. She advised members that the employer contribution, in the amount of $6,177,146, consists of $4,135,000 of prior year contributions since 2006, when City Council began setting aside annual appropriations. Since this is the first year for implementing this standard, the City has to show all contributions as if they were made in 2009. She stated that the $499,000 represents 22% of payroll and shows how far the City is from the $6.2M necessary. Mrs. Mitchell indicated that the $1.5M pay-as-you-go for retirees health insurance and Medicaid premiums comes off of the $6.2M each year, which results in a $4.6M net amount due. On a fund basis, the required annual contribution based on the current actuarial analysis is $3.1M for the General Fund, $415,000 for the

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 13 Water/Wastewater Fund, and $1.2M for the Electric Fund. Mrs. Mitchell advised members that retiree health care and Medicare Part B premiums will be paid out of the Trust Fund and that the City=s appropriation for retiree health care will be transferred to the Trust Fund. She stated that the difference between actuarial assumptions on each valuation date and actual results will either increase or decrease the net OPEB asset or liability. The cumulative amount of all years will accrue each year and be reflected on the balance sheet. She indicated that the annual differences between the annual required contribution and actual contributions will be reflected as an expense on income statements which, for utilities, may affect the Enterprise Fund Bond covenants if revenues are not sufficient to cover these expenses. In response to Mr. McGlumphy, Mrs. Mitchell explained the importance of either assuring that the rates are sufficient to cover the costs or cutting expenses. If the Bond covenants are not met, she stated that the City=s rating would be downgraded and the City=s interest costs would increase, which would result in the City paying more for debt service. The Committee recommended acceptance of the Comprehensive Annual Financial Report (CAFR). By consent agenda, Mr. Salters moved for approval of the Committee=s recommendation, seconded by Mr. Hogan and carried by a unanimous roll call vote. Summary of Pay for Performance (PFP) Employee Meetings During the meeting of April 12, 2010, Mr. Anthony DePrima, City Manager, stated that there were no comments that required significant changes to the Pay for Performance (PFP) Policy, with the exception of the Quarterly Reviews and Pay-for-Performance. Since no further action was required regarding this matter, it was noted that the discussion would continue with the next agenda item, MAG Overview of Recommendations. Referring to the Presentation of the Summary of Pay for Performance (PFP) Employee Meetings provided to members during their meeting of March 22, 2010, Mr. DePrima noted that, with the exception of the first bullet, the remainder of the items relate to the compensation plan. It was his hope that members would move forward with the actual policy before the Committee and that staff would come back to discuss the compensation plan. Responding to Mr. McGlumphy regarding the organizational level in the classification system, Mr. DePrima reiterated that the email presented by Ms. Carolyn Long, MAG Consultant, provides an explanation of how the organizational level is utilized to conduct a final reconciliation of the pay scales recommended with the scores. He advised that eliminating the organizational level would prove detrimental. Mr. DePrima again suggested that, rather than eliminating the organizational score provided for upper management, MAG could have suggested that all positions have an organizational level score.

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 14 Mr. McGlumphy reminded members that they were previously provided information regarding compensation for administrative staff and indicated that further discussion on this topic would take place during the budget hearings. He noted that there was some discussion regarding the establishment of a Council Oversight Compensation Committee. Currently, he noted that this "oversight" is conducted by the Human Resources Director. Responding, Mr. DePrima explained that the "oversight" conducted by the HR Director includes reviewing all 80 evaluations to assure the goals are properly written as Specific, Measurable, Attainable, Realistic, and Target Date (SMART). The other part of the oversight is to assure that the scores are aligned with the explanation of the score. He stated that staff was not suggesting that there is a need for a Council

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 15 Oversight Compensation Committee and that the Legislative, Finance, and Administration Committee, and ultimately City Council, have always been considered the Oversight Compensation Committee in this regard. In response to Dr. Jones, Mr. DePrima felt that the majority of department heads are satisfied with the review and comments by the Human Resources Director regarding evaluations. It was his opinion that there will be fewer concerns as department heads learn to write SMART goals. Responding, Council President Williams indicated that this was not the impression received during the interview of employees. She stated that, although only three (3) individuals were mentioned as having concerns, these individuals were serving as spokespersons. Mr. DePrima assured members that there is an appeals process related to evaluations and that there have been very few appeals during the past several years. The Committee recommended acceptance of the Report. By consent agenda, Mr. Salters moved for approval of the Committee=s recommendation, seconded by Mr. Hogan and carried by a unanimous roll call vote. FY 2011 Five-Year Capital Investment Plan (CIP) (Deferred by Committee on April 12, 2010 Due to Time Constraints) Members were provided the FY 2011 Five-Year Capital Investment Plan (CIP). The Committee recommended acceptance of the CIP=s Report as presented. Responding to Mr. Ruane, Mr. McGlumphy stated that members will have the opportunity to further consider the projects during the budget review. By consent agenda, Mr. Salters moved for approval of the Committee=s recommendation, seconded by Mr. Hogan and carried by a unanimous roll call vote. Draft Proposed Policy - Problem Rental Dwellings Mrs. Ann Marie Townshend, Director of Planning and Community Development, reminded members that on December 14, 2009, Council adopted Ordinance #2009-26, which established a fee for re-inspection of rental dwellings. At that time, staff was requested to bring forward an ordinance to address problem rental properties. Mrs. Townshend reminded members that Ordinance #2009-26 included an expansion of the City=s ability to suspend a rental permit when there are Code violations. She explained that staff felt that the request to address problem rental properties could be addressed through a policy that utilizes the suspension. Rather than a proposed ordinance, staff developed a Rental Dwelling Suspension Procedure, which was reviewed by Mrs. Townshend. Staff recommended approval of the Rental Dwelling Suspension Procedure.

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 16 Responding to Mr. Ruane, Mrs. Townshend indicated that there has been no comparison of this procedure with the Landlord Tenant Code regarding the time allowed for a renter to find another location. Mr. Ruane suggested that staff ensure that the procedure is not in conflict with the Landlord Tenant Code. In response to Mr. Ruane, Mrs. Townshend indicated that the City is unable to prevent a landlord from advertising the sale or rental of a property that may be in violation of City Code. She explained that it may be beneficial for a property that is in violation to be sold. Although sellers are required to disclose any defects with a property, the City is not involved with that process. The Committee recommended approval of the Rental Dwelling Suspension Procedure, as presented by staff. By consent agenda, Mr. Salters moved for approval of the Rental Dwelling Suspension Procedure (Exhibit #4), as recommended by the Committee. The motion was seconded by Mr. Hogan and carried by a unanimous roll call vote. By consent agenda, Mr. Salters moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mr. Hogan and carried by a unanimous roll call vote. SAFETY ADVISORY AND TRANSPORTATION COMMITTEE REPORT - APRIL 28, 2010 The Safety Advisory and Transportation Committee met on April 28, 2010 with Chairman Slavin presiding. Request for Amendment to Chapter 18 - Animals, Section 18-16 - Keeping Bees During their meeting of January 27, 2010, members considered a letter received from Mr. Bill Benton requesting an amendment to Chapter 18 - Animals, Section 18-16 - Keeping Bees. After much discussion, the Committee indicated a willingness to consider a draft proposed amendment provided by the beekeeping community. Members were provided a draft proposed ordinance amendment (attachment to Committee minutes), submitted by Mr. Bill Benton; Mr. Robert Volkomer, Vice President of the Kent County Beekeepers Association; and Mr. Robert Mitchell, State Apiarist, Delaware Department of Agriculture. Mr. Volkomer advised members that the draft proposed amendment was mimicked from a document adopted for Louisiana. With reference to the legal opinion received from the City Solicitor=s Office (attachment to Committee minutes), he stated that it was understood that additional revisions would be required and requested that the City provide the correct Code format as well. Referring to the concerns regarding the definitions included in the draft proposed amendment, Mr. Volkomer suggested the possibility of eliminating the definitions and inserting a statement

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 17 that "all equipment must be in compliance with the laws of the State of Delaware, Department of Agriculture". Responding to Mr. Hogan=s inquiry regarding colony densities, Mr. Mitchell suggested that, rather than providing a specific number of colonies for various amounts of land (Items #1-#4), the number of colonies allowed could be limited to a maximum of ten (10). Mr. Ruane relayed concern with the last sentence under "Fencing of Flyways". Responding, Mr. Volkomer reiterated that the draft proposed amendment mimicked an example found on the Internet and that modifications would be necessary. Mr. Hogan suggested that the draft proposed amendment be amended to address the Committee=s comments and the information contained in the legal opinion submitted by the City Solicitor=s office. He noted that the City Clerk=s Office could assist in drafting the amendment. Mr. DePrima suggested that the proposed amendment refer to the "Animal Control Officer" rather than the "Department of Inspections". Referring to the Compliance Section, he noted that the Animal Control Ordinance already provides for a hearing and enforcement procedure, so there is no need for it to also be included in the proposed amendment. He requested that this information be considered in the rewriting of the draft proposed ordinance amendment. The Committee recommended that the beekeeping community work with the City Clerk=s Office to rewrite the draft proposed ordinance amendment in a format that meets City requirements, addresses the comments made by the Committee, and incorporates suggestions provided in the legal opinion from the City Solicitor=s Office. By consent agenda, Mr. Salters moved for approval of the Committee=s recommendation, seconded by Mr. Hogan and carried by a unanimous roll call vote. Discussion - Potential Regulations on Businesses that Serve Alcohol (Committee Referred to Staff for Drafting of Ordinances on January 27, 2010) During their meeting of January 27, 2010 members were advised that, over the last year, downtown Dover has experienced an increase in problems associated with crowds during late hours when bars close. Problems have included nuisance complaints such as public urination, loitering, and vandalism, and more serious complaints such as fights involving weapons. After much discussion, the Committee recommended that staff be authorized to begin the process of drafting ordinances to address the concerns of the community. (The Committee=s recommendation was approved by Council during their Regular Meeting of February 22, 2010.) Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that there has been much discussion regarding how other cities address the issue. Prior to the development of a proposed ordinance, staff requested feedback regarding the following proposed provisions:

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 18 1. Establish a business license category for establishments that serve alcohol. A fee would be established that is in line with fees of similar license categories.

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 19 2. Establish provisions within the Business License Chapter of the Dover Code (Chapter 26) that would apply to establishments that serve alcohol. An example would include that a table layout would be submitted as part of the licensing requirement. Altering the table configuration would be a Code violation that may result in enforcement action. 3. Modify the Alcoholic Beverages Chapter (Chapter 10) to include a number of provisions that would give the police leverage in addressing businesses that do not effectively control the use of alcohol on their premises. For example: a. Restaurants serving alcohol must serve food during all hours that alcohol is served. b. Where an establishment serves alcohol, all alcohol must be consumed on the premises, and establishments shall be responsible for ensuring adherence. Mrs. Townshend assured members that, once feedback is obtained from members, staff will work with the Economic Development Office to further discuss this matter with the City=s business community. Mr. Ruane relayed his unreadiness to support the provisions, due to the discussions being relative to "inside" activities, and he cautioned members not to duplicate the functions of the State Alcoholic Beverage Control Commission. He noted that the problems previously expressed were related to issues occurring "outside" establishments. He suggested that the City=s nuisance ordinance may address the problems and concerns that were relayed. Responding to Mr. Harmon, Mrs. Townshend stated that the Police Department has indicated that these types of provisions would provide leverage that the City does not currently have and would allow the Police the ability to fine a business that is found to be in violation of the Dover Code or, if violations are egregious, the business license could be suspended. Mr. Jason Leone, Manager of Leone=s Loockerman Exchange, advised members that when his establishment closes for the evening, bouncers guide patrons down the alley to their vehicles and remove any trash that could have been left by his customers. Referring to the concerns received from Mr. Eric Wilke, owner of Blue Hen Auction Company (Attachment #4 from the January 27, 2010 SA&T Committee Minutes), in an effort to be proactive, Mr. Leone stated that after 10:00 p.m., a bouncer is posted in front of the auction company, and no patrons are allowed to loiter on the sidewalk from State Street to the Alley. Mr. Leone stated that he felt most of the problems arising in the downtown area occur between 12:45 a.m. and 1:30 a.m. and, since additional police officers have been hired by the Downtown Dover Partnership, any problems that arise are immediately resolved. After much discussion, Mr. Hogan suggested that public meetings be held by staff with all interested parties to discuss the issues and seek resolution. The Committee recommend that staff schedule a public meeting as soon as possible to address this issue with all interested parties to seek resolution. By consent agenda, Mr. Salters moved for approval of the Committee=s recommendation,

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 20 seconded by Mr. Hogan and carried by a unanimous roll call vote. Briefing on Delaware Department of Transportation (DelDOT) Projects - Gary Laing Mr. Gary Laing, Community Relations Officer for DelDOT and Public Relations Liaison, provided members a briefing on DelDOT Projects, as follows: West Dover Connector Mr. Laing stated that there is no further information regarding the West Dover Connector. He reminded members that the project has been at a standstill, partly due to a funding issue. South Governors Avenue Improvements Mr. Laing reported that the milling of Governors Avenue has begun and that, from the time the milling is completed, the contractor has seven (7) days to complete the paving. Water Street Railroad Crossover Mr. Laing indicated that there was no further information to report regarding the Water Street Railroad Crossover. North State Street Paving and Rehabilitation Mr. Laing indicated that the milling and paving of North State Street will begin Sunday evening at 8:00 p.m. after the Dover Days events. There should be four (4) nights of work, two (2) for milling and two (2) for paving. He stated that DelDOT agreed to notify the residents and that notices regarding the work were distributed to residents of the affected roadway and to those residents on State Street who could be impacted by noise or inconvenience. Wyoming Mill Road Project Mr. Laing advised members that a public workshop was held regarding the Wyoming Mill Road Project and that there were 46 people in attendance. He stated that many of the residents (earliest buyers) were not advised by the developer of the roadway being installed. He stated that there are some residents who are extremely unhappy with the roadway being so close to their homes. Mr. Laing assured members that DelDOT will be working with these residents to assist with noise mitigation and privacy. Referring to the drainage issue, Mr. DePrima stated that the City has agreed to the possible use and expansion of the existing pond on the Schutte Park facility. Staff is working with the engineers for this project in an attempt to assist with the situation. Briefing on Dover/Kent County Metropolitan Planning Organization (MPO) Projects - Due to the absence of Ms. Juanita Wieczoreck, no Briefing on Dover/Kent County Metropolitan Planning Organization (MPO) Projects was provided. By consent agenda, Mr. Salters moved for acceptance of the Safety Advisory and Transportation Committee Report, seconded by Mr. Hogan and carried by a unanimous

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 21 roll call vote. MONTHLY REPORTS - MARCH 2010 By motion of Mr. Salters, seconded by Mr. Hogan, the following monthly reports were accepted by consent agenda: Budget Report Chief of Police Report City Assessor Report City Manager's Report City Planner=s Report Dover Fire Department Report (February) COUNCIL APPOINTMENTS - 2010/2011 By consent agenda, Mr. Salters moved for approval of the Council Appointments for 2010/2011, seconded by Mr. Hogan and by a unanimous roll call vote, the following appointments were made: City Assessor - Cheryl A. Russell Building Inspector - Scott D. Koenig City Clerk - Traci A. McDowell Assistant City Clerk - Amber L. Clendaniel Controller/Treasurer - Donna S. Mitchell Assistant Treasurers - Traci A. McDowell - Amber L. Clendaniel Fire Marshal - David J. Truax City Planner - Ann Marie Townshend City Solicitor - Nicholas H. Rodriguez Deputy City Solicitor - William W. Pepper, Sr. COMMITTEE APPOINTMENTS - COUNCIL PRESIDENT Council President Hogan requested that all members of Council and Chairs continue to serve in their current capacity on the Council Committees and that they contact him regarding their choices for appointments. He requested that the Council President Committee appointments be deferred until the Regular Council Meeting of May 24, 2010. Mr. Hogan moved to defer the Council President Committee Appointments until May 24, 2010, seconded by Mr. Salters and unanimously carried. MISCELLANEOUS APPOINTMENTS - COUNCIL PRESIDENT Council President Hogan requested that the miscellaneous appointments be deferred until the Regular Council Meeting of May 24, 2010.

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 22 Mr. Hogan moved to defer the Miscellaneous Appointments until May 24, 2010, seconded by Mr. Bonar and unanimously carried.

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 23 COMMITTEE APPOINTMENTS - MAYOR By consent agenda, Mr. Salters moved for approval of the Committee Appointments for 2010/2011, as recommended by Mayor Carey. The motion was seconded by Mr. Hogan and by a unanimous roll call vote, the following appointments were made: Dover 4th of July Celebration Committee Election Board Greg Patterson, President/Vice Chairman Goldie Legates - Third (3rd) District (5/2013) Vice-President (request appointment to replace Lillie M. Johson - Fourth (4th) District (5/2013) David L. Bonar to be deferred until 5/24/2010) Donna Mitchell, Treasurer/Secretary Property Maintenance Code Board of Appeals Elaine Brenchley Rexene Ornauer, Representative of Homeowners Scott Cole Charles Martin, Representative of Local Real Brad Holden Estate Silver Lake Commission Andrea Maucher Cheryl A. Biddle Karen Nickerson James Burcham Carleton E. Carey, Sr., Chairman (ex-officio Zachery Carter member) David L. Edgell Robert Gorkin Dover Public Library Advisory Commission Dean Holden Councilman Eugene B. Ruane Nancy H. Wagner Downtown Dover Partnership Steering Committee Councilman Sophia R. Russell Councilman Reuben Salters Councilman David L. Bonar Anthony DePrima, City Manager Ann Marie Townshend, City Planner Laura Simmons, State of Delaware Representatives Downtown Retailer (Request appointment to replace Thomas Smith to be deferred until 5/24/2010 - Three Year Term (Expires 5/2013) Michael Harrington - Real Estate Professional Whose Practice Includes Downtown Area - Three Year Term (Expires 5/2013) Joseph McDaniel - Financial Services Professional Whose Practice Includes Downtown Area - Three Year Term (Expires 5/2013) FINAL READING - PROPOSED ORDINANCES The First Reading of the following proposed ordinances was accomplished during the Council Meeting of April 26, 2010. #2010-14 - FY 2010 Budget Amendments Mrs. Williams moved that the Final Reading of the proposed ordinance be acknowledged

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 24 by title only, seconded by Mr. Hogan and unanimously carried. Mr. Hogan moved for adoption of Ordinance #2010-14 - FY2010 Budget Amendments (Exhibit #5), seconded by Mr. Salters and carried by a unanimous roll call vote. #2010-02 - Adoption of 2009 ICC (Building) Codes Mr. Leary moved that the Final Reading of the proposed ordinance be acknowledged by title only, seconded by Mr. Hogan and unanimously carried. Mr. Hogan moved for adoption of Ordinance #2010-02 - Adoption of 2009 ICC (Building) Codes (Exhibit #6), seconded by Mr. Leary and carried by a unanimous roll call vote: COUNCIL MEMBERS ANNOUNCEMENTS Mr. McGiffin reminded members to mark their calendars for June 26, 2010 for the next African American Festival. Mr. McGiffin noted the importance of the City Clerk=s Office to members of Council and that Mrs. Becky Rollison, who has served in the City Clerk=s Office, has accepted a position with the Dover Fire Department. As a result, he stated that Mrs. Rollison will be sorely missed and wished her well in her new position and future endeavors. Mr. McGlumphy also wished Mrs. Rollison all the best in her new position with the Dover Fire Department. On behalf of the Youth Advisory Committee, Mrs. Russell thanked all those who contributed clothing for distribution throughout the City. This was the first such activity for the Committee and a substantial amount of clothing was received for donation to Good Will Industries. Mrs. Russell requested that members of Council, staff, and the public continue to support the Youth Advisory Committee and welcomed any suggestions. She also thanked the residents of the Fourth District for re-electing her to continue to serve them as their City Council representative. Mr. Salters thanked Mrs. Williams for serving as Council President for the past year. Mr. Leary moved for adjournment, seconded by Mrs. Russell and unanimously carried. Meeting Adjourned at 9:07 P.M. TRACI A. McDOWELL CITY CLERK

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 25

ANNUAL CITY COUNCIL MEETING OF MAY 10, 2010 PAGE 26 All orders, ordinances, and resolutions adopted by City Council during their Annual Meeting of May 10, 2010, are hereby approved. CARLETON E. CAREY, SR. MAYOR /TM/jg/js/rr/ac mag2D64.wpd Exhibits Exhibit #1 - State of the City Message Exhibit #2 - Amendment #2 to the Energy Management Agreement with Pace Global Asset Management, LLC Exhibit #3 - Electric Service Handbook Revision - Customer Service Section Exhibit #4 - Rental Dwelling Suspension Procedure Exhibit #5 - Ordinance #2010-14 - FY2010 Budget Amendments Exhibit #6 - Ordinance #2010-02 - Adoption of 2009 ICC (Building) Codes

EXHIBIT #1 Annual Council Meeting of 05/10/2010 Carleton E Carey, Sr. Mayor EXHIBIT #1 Annual Council Meeting of 05/10/2010

The City of Dover is a place where people want to live! Through the team effort of its elected officials, employees, and citizens, Dover is a clean and safe community with a future of balanced growth and opportunity where all citizens are heard, enjoy a high quality of life, and diversity is valued.

Draft Budget Figures: $146.6 Million 6.81% decrease from 2009-10 Fiscal Year

Taxable Property Values Beginning Fiscal VALUE: $2,899,061,120 Year 2010 % of change: (July 1, 2009) increase of 3.2567% from last year Please note: Value Change: This does not include $91, 434,105 Senior Citizen or Disability Discount (Value change is the increase in value from last year)

Public Utilities Improved Electric Service
Completed the 69Kv Feeders 3 & 4 project which doubled the capacity of our transmission system and increased system reliability.
Completed the Saint Jones Substation which eliminated the need for the 22KV sub transmission and increased system reliability for the downtown area.
Continuing to replace aging underground lines throughout the City. Completed Kent Acres, Schoolview and currently working in Buchanan Acres.

Public Utilities Improved Electric Service
Successfully installed pollution control equipment at the power plant to improve Dover’s air quality.
Replacing air monitoring equipment to ensure regulatory compliance.
In the coming year our Mid-City Substation will be modified to dramatically improve the electric reliability of the southern end of the City as well as incorporating environmental improvements.

Water System Upgrades * Completed the installation of all deep well contact time chambers which will help mitigate brown water issues. * Installed 1.8 miles of new water main in FY ‘09/’10 which will help mitigate brown water issues. Will start the installation of an additional 2.7 miles of new water main. New water main installations are planned every year. * Continue system-wide flushing as part of the Water Quality Improvement Program. * Redeveloped a deep well site to improve capacity and reliability.

*Completed the upgrade of one (1) aging and overloaded pumping station with two (2) more to be completed this year. Replacement of one (1) other station is to occur next year. *Started the installation of the U.S. Route 13 sanitary sewer interceptor which will facilitate the removal of an obsolete pump station. *Starting the rerouting of one (1) force main to better utilize the system. Rerouting or upgrades to two (2) other force mains are to occur next year. *Will start a repair/replacement project to address the inflow/infiltration of groundwater into the sanitary sewer system.

960 emergency responses last year
1120 hours of firefighter training provided which entailed 45 different training courses
National Incident Management System (NIMS) training for Fire Dispatchers and department officers.
3,000+ children participated in fire safety programs
300 smoke detectors given to City residents during WAKE UP DELAWARE smoke detector program

* In 2009, 200 men and women volunteered approximately 27,000 hours of time to help make Dover safe. * Members started training for National Pro-Board Firefighter I & II Department currently maintains and operates: 5 Engines, 2 Ladders, 1 Heavy Rescue, A Brush Unit, A Foam Unit, A Rescue Boat, A Utility, and 2 Command Vehicles Continue to provide superior fire and rescue services to the greater Dover area!

Total Complaints Five Year Comparison 40,000 30,133 30,482 29,632 29,413 28,440 30,000 20,000 10,000 0 2005 2006 2007 2008 2009

Violent Crime Five Year Comparison 400 331 340 331 316 300 244 261 255 250 243 181 200 TOTAL CLEARED 100 0 2005 2006 2007 2008 2009

Actual Drug Arrests Drugs, Vice, & Organized Crime Section 2,000 1,732 1,732 1,593 1,595 1,687 1,000 0 2005 2006 2007 2008 2009

Criminal Investigations Unit The Dover Police Criminal Investigation Section is tasked with the responsibility to investigate the most serious crimes that occur within the City of Dover. This section also conducts financial and identity theft investigations. In addition to these duties they are called upon to perform background investigations on all civilian and police applicants who are being considered for employment. In 2009, the seven detectives assigned to this section investigated a total of 1,973 complaints and cleared 1,811. The detectives solved over 75% of the robberies, 49% of the burglaries and nearly 96 % of the rapes. The Detective Section cleared 92% of all cases that they investigated. These clearance rates are significantly higher than the national average. This speaks volumes for their investigative abilities. In 2009, Detective Jeffrey Melvin and Detective Lawrence Simpkiss attended the premier evidence collection school in the United States, the National Forensic Academy. These two Detectives graduated in November and are two of three graduates of the National Forensic Academy that currently work in the State of Delaware.

Quality of Life Neighborhood Enforcement Team The Quality of Life Neighborhood Enforcement Team (QOLNET) had several categories where new highs were attained; Local Fugitives, Traffic arrests, and the total number from all categories was a new high. QOLNET has maintained a high active presence in the downtown area and has significantly reduced the complaints of loud music from vehicles, loitering, open alcohol containers, and panhandling from Loockerman St. QOLNET made numerous arrests for Quality of Life crimes this calendar year. They made 102 Alcohol Violation arrests, 54 Loud Music arrests, 12 City Park Violation arrests, 7 panhandling arrests and towed 30 Abandoned Vehicles. They also made an additional 277 criminal arrests, 357 drug arrests, 1,157 traffic arrests and arrested 348 fugitives. Assist with the execution of search warrants for the Drugs, Vice, & Organized Crime Section. Members of all these sections also assisted at various events throughout the year such as parades, funeral escorts, downtown events such as Old Dover Days, July 4th Events, The Dover Mile run, and the Special Olympics Torch Run. Members also help supplement the patrol shifts in answering calls for all types of service.

The Quality of Life Neighborhood Enforcement Team 4,000 3,441 3,299 3,280 QOLNET 2,768 Enforcement Action Totals 2,000 0 2006 2007 2008 2009

Sex Offenders Enforcement Section In September 2008, the Dover Police Department saw the inception of the Sex Offender Enforcement Section. Their primary duties concern the enforcement of the Sex Offender registration laws. Working in conjunction with QOLNET and the Community Policing Section, they continue to be a leader in the state with an innovative and stringent sex offender management system. TIER WRITTEN DOOR TO DOOR TOTAL REPORTS NOTIFICATIONS NOTIFICATIONS Tier 2 110 0 9,900 Tier 3 32 2,940 5,820 Totals 142 2,940 15,720 * Includes Notifications by Crimeweb.net and by email.

Silver Lake Revitalization is moving forward with preliminary plans in hand to restore the banking from the dam to the footbridge and the Washington Street stream to the footbridge areas. John W. Pitts Recreation Center hosted 100,694 guests (program & open gym participants, meeting attendees and spectators) since its opening in April 2008. This denotes a 105% increase from last year’s figures. Membership ID Cards: FREE Recreation Center ID Cards are issued to track facility usage during Open Gym Periods. The statistics listed below reflect those that have completed the registration. Open Gym Registrations Age Breakdown of Card Holders Total ID cards issued: 3,324 7-11: 66* 40-49: 256 12-19: 1,041 50-59: 179 20-29: 1,182 60-69: 131 30-39: 405 70-79: 52 * Card not required for age group. 80-up: 13

John W. Pitts Recreation Center Program Attendance Program Attendance** FYTD 10 Total 42,640 Open Gym 7,681 Fitness Classes 4,481 Leagues 21,665 Camps 680 Sports Classes 3,110 Meetings & Rentals 4,855 ** Program Attendance figures includes participants, parents and spectators in the facility.

John W. Pitts Recreation Center Hourly Usage Facility Usage By FYTD 10 The Hour Open Gym 3,784.75 Fitness Classes 361 Leagues 412 Camps 117.5 Sports Classes 247.75 Meetings & Rentals 172.5 Enrichment Classes 59 Total Facility Usage 5,145.5 Hours

*Site Testing complete *Schematic Design Phase complete *Design & Development Phase complete *Historic District review complete *Site Plan review complete *Construction Documents begun

•Ease of access •Clearly visible to downtown visitors •Close to other City facilities •Adequate parking •Centrally located •City owned •Room for future expansion •Contributes to downtown revitalization

37,587 Library Card Holders 395,217 visitors – 1,098 per day 428,633 items were loaned 348 programs were offered 10,129 people attended programs 21 computers available to the public Services to the public 68 hours a week, 7 days a week

Capital Campaign Launch Campaign Leadership: Donna Stone Chairperson First Lady Carla Markell Honorary Chairperson Terri Nellans Brown Medical Committee Chairperson Dr. Ralph Zaragoza Honorary Chairperson Mayor Carleton E. Carey, Sr. Honorary Chairperson Business Committee K.C. Sheth Business Committee Michelle Saunders, Chairperson Events Committee

•Accredited as one of Delaware’s eight (8) nationally recognized Main Street programs •1596 Volunteer Hours for an investment valued at $32,319 (Independent Sector values volunteer hours @ $20.25/hr) •Six new businesses opened in Downtown District creating 15 positions Dollars invested in downtown improvements •Façade Improvements - $87,350 •Building Renovations - $2,620,000 •DDP committed $68,519 and Dover Community Partnership committed $15,000 for installation of Security Cameras

* Eleven loans facilitated through SBA Loan Guarantee program resulting in $225,000 in funding for local businesses and stabilization of 34 jobs * Received $43,790 USDA Rural Development Grant to fund a series of workshops for potential and existing business owners Downtown Promotions Committee implemented/supported Dover Days Halloween Costume Parade Festival of Lights Home for the Holidays First Night Dover First Friday Arts Circuit Spring Splendor Fashion Show

Delaware’s FIRST Solar Power Plant

*The forging of a statewide partnership for bringing green jobs and green energy to Delaware. *10 MW solar photovoltaic power plant *Connect directly into Dover distribution system *Will supply enough clean power for over 1300 homes in the community *Project construction will create 140-150 local green collar jobs *Signing ceremony will take place June 15th

EXHIBIT #2 Annual Council Meeting of 05/10/2010 SECOND AMENDMENT TO ENERGY MANAGEMENT AGREEMENT This Second Amendment to Energy Management Agreement (this “Second Amendment”), dated and made effective as of March 25, 2010, is entered into by and between the City of Dover, Delaware, a municipal corporation of the State of Delaware (“Dover”), and Pace Global Asset Management, LLC, a Virginia limited liability company (“Energy Manager”). Dover and Energy Manager are sometimes referred to herein, individually, as "Party" and, collectively, as "Parties." All capitalized terms which are not defined herein shall possess the meanings allocated to them in the Agreement. W H E R E A S: WHEREAS, Dover and Energy Manager entered into that certain Energy Management Agreement, dated as of May 4, 2006, as amended by that certain First Amendment to Energy Management Agreement, dated as of November 20, 2007 (collectively, the “Agreement”), which the Parties now desire to amend further pursuant to the terms and conditions set forth in this Second Amendment. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Second Amendment, and intending to be legally bound hereby, the Parties agree as follows: 1. Section 2.1 of the Agreement is deleted in its entirety and replaced with the following: “Section 2.1 Term. This Agreement is effective beginning May 4, 2006 (the “Effective Date”) and continues through June 30, 2011 (the “Expiration Date”). The period beginning on the Effective Date and ending on the Expiration Date is the “Initial Term”. No later than September 30, 2010, Energy Manager shall submit to Dover a proposal (the “Extension Proposal”) for services, associated compensation structure and extension of the term of this Agreement (any such term extension hereinafter referred to as the “Extended Term”) for consideration by Dover which Extension Proposal’s proposed compensation structure shall be no greater than amounts established in the respective sections of this Second Amendment for the Initial Term. Dover shall respond to the Extension Proposal no later than January 1, 2011. Should Dover fail to respond by such due date, the Agreement will renew automatically for an initial one (1) year Extended Term pursuant to the terms proposed by Energy Manager in the Extension Proposal. If Dover responds by such due date, and in its response, Dover does not accept the Extension Proposal, the term of this Agreement shall expire on the Expiration Date. 2. Section 2.2 of the Agreement is deleted in its entirety and replaced with the following: “Section 2.2 Early Termination. Neither Party may terminate this Agreement for convenience prior to the Expiration Date.” 1

3. Section 8.1 of the Agreement is deleted in its entirety and replaced with the following: “Section 8.1 Monthly Payment. For work performed as set forth in Articles 4, 5 and 6 hereof, Dover shall pay the Energy Manager the following fees during the Initial Term of this Agreement: (a) From the Effective Date through June 30, 2007, One Hundred Eighty-One Thousand Two Hundred Fifty Dollars ($181,250.00) per month; (b) during the period July 1, 2007 through June 30, 2010, One Hundred Sixty-Six Thousand Six Hundred Sixty-Six Dollars and Sixty-Seven Cents ($166,666.67) per month; and (c) during the period July 1, 2010 through June 30, 2011, One Hundred Forty-One Thousand Six Hundred Sixty-Six Dollars and Sixty-Seven Cents ($141,666.67) per month; provided, however, that should the Project’s actual load for the July 1, 2010 through June 30, 2011 period total less than the annual load benchmark of 788,808 MWh, Energy Manager will reduce the monthly fee for the July 1, 2010 through June 30, 2011 period by the percentage load loss from the 788,808 MWh benchmark load figure to the actual load figure for such time period. Once the actual load figure is known, Energy Manager will make any appropriate adjustments to the next monthly bill.” 4. In Section 8.2(a) of the Agreement: (a) in the first sentence, the words “and first Extended Term” shall be deleted; and (b) in subsection (ii), the value of “$7.50” shall be replaced by the value of “$5.50.” 5. In Section 8.2(b) of the Agreement, the value of “One Million Dollars ($1,000,000.00)” shall be replaced by the value of “Seven Hundred Thousand Dollars ($700,000.00).” Except as specifically amended or waived by this Second Amendment, all of the terms and conditions of the Agreement shall remain in full force and effect. If there is a conflict between the terms and conditions set forth in this Second Amendment and the terms and conditions set forth in the Agreement, the terms and conditions set forth in this Second Amendment shall control. 2

IN WITNESS WHEREOF, each of the Parties has caused this Second Amendment to be executed by its duly authorized officer as of the date first written above. CITY OF DOVER, DELAWARE PACE GLOBAL ASSET MANAGEMENT, LLC By: By: Name: Name: Title: Title: Date: Date: 3

EXHIBIT #3 Annual Council Meeting of 05/10/2010

EXHIBIT #4 Annual Council Meeting of 05/10/2010

EXHIBIT #5 Annual Council Meeting of 05/10/2010 FINAL READING CITY OF DOVER PROPOSED ORDINANCE #2010-14 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: The amounts hereinafternamed in various City funds are changes from the currently approved revenues/receipts and appropriations to the revised revenues/receipts and revised appropriations for use by the various departments of the Municipal Government for: 2009-2010 BUDGET ORDINANCES GENERAL FUND CASH RECEIPTS AND BUDGET FOR 2009-2010 INFO ONLY ADJUSTED REVISED 2009-10 2009-10 BUDGET BUDGET RECEIPTS PRIOR YEAR BALANCE $ 3,628,890 $ 3,628,890 FINES AND POLICE REVENUE 620,000 520,000 911 FEE 45,000 45,000 INVESTMENT INCOME 253,000 253,000 LIBRARY REVENUES 66,508 66,508 KENT COUNTY BOOK REIMBURSEMENT 460,000 460,000 BUSINESS LICENSES 1,430,000 1,450,000 PERMITS AND OTHER LICENSES 904,000 919,000 DEMOLITION REVENUE - - MISCELLANEOUS CHARGES 54,250 54,250 POLICE EXTRA DUTY 300,000 300,000 PROPERTY TAXES 10,185,246 10,155,246 BID REVENUE 52,692 52,692 RECREATION REVENUE 141,500 141,500 FRANCHISE FEE 486,000 486,000 TRASH FEES 1,260,000 1,260,000 DSWA TRASH FEE REBATE 160,000 160,000 RENT REVENUE - GARRISON FARM 41,535 41,535 COURT OF CHANCERY FEES 745,000 645,000 INTERNET REVENUE - - CURBSIDE RECYCLING - - RECEIPTS SUBTOTAL 20,833,621 20,638,621 INTERFUND SERVICE RECEIPTS INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 991,830 968,999 INTRAFUND SERVICE RECEIPTS ELECTRIC 3,483,884 3,379,975 INTERFUND SERVICE RECEIPTS SUBTOTAL 4,475,714 4,348,974 GRANTS: POLICE RELATED 40,000 80,000 STATE GRANT - TRAIL MAINTENANCE - - CAPITAL SCHOOL DISTRICT REVENUE 74,000 74,000 POLICE PENSION GRANT 620,000 620,000 RECREATION GRANTS - - INSURANCE AGENCY FIRE SAFETY GRANT - - MISC GRANT REVENUE - - HOMELAND SECURITY GRANT - - SALE OF ASSETS - - GRANTS SUBTOTAL 734,000 774,000

2009-2010 BUDGET ORDINANCES GENERAL FUND - CONTINUED INFO ONLY ADJUSTED REVISED 2009-10 2009-10 BUDGET BUDGET TRANSFERS FROM: TRANSFER TAX 1,400,000 900,000 MUNICIPAL STREET AID - - CIVIL TRAFFIC PENALTIES 700,000 700,000 WATER/WASTEWATER 548,020 548,020 ELECTRIC 6,758,100 6,758,100 PARKLAND RESERVE - - LIBRARY RESERVE - - CAPITAL ASSET RESERVE - - WORKER'S COMP FUND - - CONTINGENCY - 350,000 TRANSFERS FROM TOTAL 9,406,120 9,256,120 RECEIPTS TOTAL $ 35,449,455 $ 35,017,715 EXPENSES CITY CLERK $ 290,580 $ 278,229 COUNCIL 112,684 113,934 TAX ASSESSOR 572,526 565,924 FIRE 750,445 718,058 GROUNDS MAINTENANCE 1,119,611 1,104,457 LIBRARY 1,148,716 1,128,481 RECREATION 757,467 754,140 LIFE SAFETY 422,029 508,320 CODE INFORCEMENT 378,092 366,082 PLANNING 409,335 400,895 INSPECTIONS 517,316 509,371 ECONOMIC DEVELOPMENT 243,854 223,350 POLICE 11,769,685 12,180,683 POLICE EXTRA DUTY 449,516 449,516 STREETS 857,422 895,084 SANITATION 2,200,285 2,078,770 CITY MANAGER 553,130 566,474 INFORMATION TECHNOLOGY 883,075 797,071 FINANCE 781,791 781,791 PUBLIC SERVICES - ADMINISTRATION 355,159 354,640 FACILITIES MANAGEMENT 1,042,498 996,515 CENTRAL SERVICES 778,095 714,165 FLEET MAINTENANCE 699,676 712,645 CUSTOMER SERVICES 893,054 889,919 HUMAN RESOURCES 455,960 430,037 MAYOR 69,899 70,699 EXPENSES TOTAL 28,511,900 28,589,250 OTHER EXPENSES DEBT SERVICE 328,410 328,410 TRANSFER TO CONTINGENCY - - DSWA RECYCLING PROGRAM - - INSURANCE 600,000 600,000 RETIREES HEALTH CARE 1,014,820 1,014,820 RETIREES PAYMENTS - - UNCOLLECTIBLES - TRASH AND OTHER 10,000 10,000 LOSS ON SALE OF ASSET - 42,993 STORM EMERGENCY - 350,000 STREET LIGHTS 985,000 985,000 OTHER EXPENSES TOTAL 2,938,230 3,331,223

2009-2010 BUDGET ORDINANCES GENERAL FUND - CONTINUED INFO ONLY ADJUSTED REVISED 2009-10 2009-10 BUDGET BUDGET GRANTS IT EMERGENCY PREPAREDNESS PLAN - - GRANTS TOTAL - - TRANSFERS TRANSFER TO OPEB - - TRANSFER TO PENSION UNFUNDED LIABILITY - - TRANSFER TO PENSION COLA - - TRANSFER TO POLICE PENSION FUND 620,000 620,000 TRANSFER TO CAPITAL ASSET RESERVE - - TRANSFER TO CAPITAL FUND - PROJECTS 344,802 44,802 TRANSFER TO CAPITAL FUND - RESERVE - - TRANSFER TO STREET PROGRAM - - TRANSFER TO PARKLAND/RECREATION RESERVE - - TRANSFER TO LIBRARY RESERVE - - TRANSFER TO CDBG FUND 11,000 11,000 TRANSFER TO VERIZON RESERVE - - INVENTORY WRITE OFFS - - TRANSFERS TOTAL 975,802 675,802 - CURRENT YEAR BALANCE 3,023,523 2,421,440 TOTALS $ 35,449,455 $ 35,017,715

2009-2010 BUDGET ORDINANCES GENERAL CONTIGENCY FUND CASH RECEIPTS AND EXPENDITURES FOR FISCAL 2009-2010 INFO ONLY ADJUSTED REVISED 2009-10 2009-10 BUDGET BUDGET CASH RECEIPTS BEGINNING BALANCE $ 744,871 $ 744,871 INTEREST EARNINGS - - TRANSFER FROM GENERAL FUND - - TOTALS 744,871 744,871 EXPENDITURES TRANSFER TO GENERAL FUND - 350,000 TRANSFER TO OPEB - - TRANSFER TO LIBRARY FUND - - CARRY FORWARD TO NEXT YEAR 744,871 394,871 TOTALS $ 744,871 $ 744,871

2009-2010 BUDGET ORDINANCES GOVERNMENTAL CAPITAL PROJECTS FUND CASH RECEIPTS AND EXPENDITURES FOR FISCAL 2009-2010 INFO ONLY ADJUSTED REVISED 2009-10 2009-10 BUDGET BUDGET BEGINNING BALANCE - PROJECTS $ 462,693 $ 462,693 STATE GRANTS 4,180,234 4,180,234 INTEREST EARNINGS 2,700 2,700 INCOME FROM SALE OF ASSETS* - 29,200 RECREATION GRANTS - - HOMELAND SECURITY GRANTS - - LIBRARY BOND ISSUE/CONTRIBUTIONS 1,912,433 1,912,433 TRANSFER FROM GENERAL FUND FOR PROJECTS 344,802 44,802 TRANSFER FROM PARKLAND RESERVE (JWP CNTR) - 40,000 TRANSFER FROM LIBRARY RESERVE 3,180,235 3,180,235 GIFTS/DONATIONS (JWP CNTR) - - PARKLAND RESERVE RECEIPT - - TRANSFER FROM CAPITAL ASSET RESERVE - - TOTALS 10,083,097 9,852,297 DEPARTMENT EXPENSES: CITY CLERK - - COUNCIL - - TAX ASSESSOR - - FIRE 292,210 292,210 GROUNDS MAINTENANCE - - LIBRARY 9,272,902 9,272,902 RECREATION 70,000 110,000 LIFE SAFETY - - PLANNING - - INSPECTIONS - - ECONOMIC DEVELOPMENT - - POLICE 94,706 94,706 STREETS 350,000 50,000 SANITATION - - CITY MANAGER - - INFORMATION TECHNOLOGY 7,000 7,000 FINANCE - - PUBLIC SERVICES - ADMINISTRATION - - FACILITIES MANAGEMENT - - CENTRAL SERVICES - - FLEET MAINTENANCE - - CUSTOMER SERVICES - - HUMAN RESOURCES - - MAYOR - - DEPARTMENT SUBTOTAL 10,086,818 9,826,818 TRANSFERS TRANSFER TO CAPITAL ASSET RESERVE - - TRANSFER TO PARKLAND RESERVE - - TRANSFER TO LIBRARY RESERVE - - TRANSFER TO GENERAL FUND - - TRANSFER SUBTOTAL - - - CURRENT YEAR BALANCE (3,721) 25,479 TOTALS $ 10,083,097 $ 9,852,297 * Income from Sale of Assets was not listed in Latest Estimate

2009-2010 BUDGET ORDINANCES WATER/WASTEWATER FUND REVENUES AND EXPENSES FOR FISCAL 2009-2010 INFO ONLY ADJUSTED REVISED 2009-10 2009-10 REVENUE BUDGET BUDGET PRIOR YEAR BALANCE - WATER $ 659,584 $ 659,584 PRIOR YEAR BALANCE - WASTEWATER 327,614 327,614 PRIOR YEAR BALANCE - KCSA (397,473) (397,473) WATER FEES 4,499,000 4,449,000 WASTEWATER FEES 3,045,560 3,045,560 WASTEWATER ADJUSTMENT FEES 3,435,390 3,152,000 WATER TANK SPACE LEASING 293,669 293,669 SEWER IMPACT FEES 475,000 320,000 WATER IMPACT FEES 280,000 250,000 INTEREST - WATER 35,370 900 INTEREST - WASTEWATER 43,230 1,100 MISCELLANEOUS SERVICE FEE 71,000 71,000 REVENUE SUBTOTAL 12,767,944 12,172,954 EXPENSES ENGINEERING & INSPECTION 697,783 685,943 WATER CONSTRUCTION 410,338 421,040 WATER DEPARTMENT 458,333 421,268 WATER TREATMENT PLANT 1,517,663 1,519,732 WASTEWATER DEPARTMENT 988,455 879,992 METER READING 72,533 71,350 KENT COUNTY TREATMENT CHARGE 3,435,430 4,235,403 DIRECT EXPENDITURE SUBTOTAL 7,580,535 8,234,728 OTHER EXPENSES DEBT SERVICE - WATER 468,013 244,000 DEBT SERVICE - WASTEWATER 364,938 216,000 RETIREES HEALTH CARE 134,680 134,680 INTRAFUND SERVICE FEES 1,262,456 1,250,827 ARBITRAGE PAYMENT 60/40 Water - - OTHER EXPENSES SUBTOTAL 2,230,087 1,845,507 TRANSFER TO GENERAL FUND FROM WATER 231,459 231,459 GENERAL FUND FROM WASTEWATER 316,561 316,561 WATER IMP AND EXT 500,000 500,000 WASTEWATER IMP AND EXT 200,000 200,000 TRANSFER TO OPEB - - TRANSFER TO PENSION UNFUNDED LIABILITY - - TRANSFER TO PENSION COLA - - SEWER IMPACT FEE RESERVE 110,062 104,000 WATER IMPACT FEE RESERVE - - CAPITAL ASSET RESERVE WATER - - CAPITAL ASSET RESERVE WASTEWATER - - TRANSFER TO SUBTOTAL 1,358,082 1,352,020 CURRENT YEAR BALANCES CURRENT YEAR BALANCE WATER 1,133,591 1,279,754 CURRENT YEAR BALANCE WASTEWATER 863,162 941,821 CURRENT YEAR BALANCE KCSA (397,513) (1,480,876) CURRENT YEAR BALANCE SUBTOTALS 1,599,240 740,699 TOTALS $ 12,767,944 $ 12,172,954

2009-2010 BUDGET ORDINANCES ELECTRIC REVENUE FUND REVENUES AND EXPENSES FOR FISCAL 2009-2010 INFO ONLY ADJUSTED REVISED 2009-10 2009-10 BUDGET BUDGET BASE REVENUE PRIOR YEAR BALANCE $ 11,415,737 $ 11,415,737 DIRECT SALES TO CUSTOMER 99,533,042 95,830,100 PURCHASE POWER ADJUSTMENT - - UTILITY TAX 1,781,500 1,850,000 GREEN ENERGY 137,600 137,600 MISCELLANEOUS REVENUE 1,051,184 1,051,184 RENT REVENUE 186,816 186,816 DUKE CONTRACT REVENUE - - EMISSION CREDIT SALES 274,000 274,000 TRANSFER FROM RATE STABILIZATION - - INTRAFUND SERVICE RECEIPTS WATER/WASTEWATER 270,626 281,828 REIMBURSEMENT OF BOND ISSUANCE COST - - INTEREST EARNINGS 158,500 57,000 TOTALS 114,809,005 111,084,265 EXPENSES POWER SUPPLY 55,619,481 55,619,481 POWER SUPPLY MANAGEMENT 3,000,000 3,000,000 PJM CHARGES - LOAD 13,943,413 7,356,438 CAPACITY CHARGES 13,469,528 13,456,389 RATE STABILIZATION CREDIT (3,000,000) - SUB-TOTAL POWER SUPPLY 83,032,422 79,432,308 PLANT OPERATIONS 5,848,710 5,848,710 GENERATIONS FUELS 1,275,251 213,529 PJM CREDITS (1,701,066) (520,842) CAPACITY CREDITS (12,133,285) (12,135,127) GENERATION SUBTOTAL (6,710,390) (6,593,730) POWER SUPPLY & GENERATION SUBTOTAL 76,322,032 72,838,578 DIRECT EXPENDITURES TRANSMISSION/DISTRIBUTION 3,318,622 3,215,601 ELECTRICAL ENGINEERING 1,500,012 1,359,569 ADMINISTRATION 640,535 679,558 METER READING 289,103 281,614 SYSTEMS OPERATIONS 624,520 488,131 UTILITY TAX 1,781,500 1,850,000 DIRECT EXPENDITURE SUBTOTALS 8,154,292 7,874,473 OTHER EXPENSES ALLOW FOR UNCOLLECTIBLES 135,000 135,000 RETIREES HEALTH CARE 567,430 567,430 GREEN ENERGY PAYMENT TO DEMEC 137,600 137,600 INTRAFUND SERVICE FEES 3,483,884 3,379,975 INTEREST ON DEPOSITS 54,500 54,500 INVENTORY WRITE OFFS 175,000 175,000 BOND ISSUANCE COSTS - - POWER SUPPLY STUDY 497,250 457,250 DEBT SERVICE 3,956,600 3,956,600 OTHER EXPENSES SUBTOTAL 9,007,264 8,863,355

2009-2010 BUDGET ORDINANCES ELECTRIC REVENUE FUND - CONTINUED INFO ONLY ADJUSTED REVISED 2009-10 2009-10 BUDGET BUDGET TRANSFER TO IMPROVEMENT & EXTENSION $ 2,500,000 $ 2,500,000 GENERAL FUND 6,758,100 6,758,100 TRANSFER TO CONTINGENCY 83,500 83,500 TRANSFER TO PENSION UNFUNDED LIABILITY - - TRANSFER TO PENSION COLA - - RATE STABILIZATION RESERVE - - TRANSFER TO SUBTOTAL 9,341,600 9,341,600 CURRENT YEAR BALANCE 11,983,817 12,166,259 TOTALS $ 114,809,005 $ 111,084,265

2009-2010 BUDGET ORDINANCES ELECTRIC IMPROVEMENT AND EXTENSION FUND REVENUES AND EXPENSES FOR FISCAL 2009-2010 INFO ONLY ADJUSTED REVISED 2009-10 2009-10 BUDGET BUDGET REVENUES PRIOR YEAR BALANCE $ 2,625,760 $ 2,625,760 PRIOR YEAR BALANCE BOND 4,240,034 4,240,034 INTEREST EARNINGS 33,700 25,000 INTEREST TRUSTEE - - INCOME FROM SALE OF ASSETS - - ELECTRIC NEW SERVICE FEES - - RECEIPT FROM DEPRECIATION RESERVE - - RECEIPT FROM FUTURE CAPACITY RESERVE - - DEMA GRANT - - STATE REIMBURSEMENT FOR SR1 &SR9 - - STATE REIMBURSEMENT FOR GOVS AVE 710,318 710,318 STATE GRANTS 105,723 105,723 FEDERAL GRANTS 135,152 135,152 GREEN ENERGY GRANT - - BOND ISSUE 2008 - - TRANSFER FROM ELECTRIC 2,500,000 2,500,000 TOTALS 10,350,687 10,341,987 EXPENSES ELECTRIC GENERATION 1,875,290 1,875,290 TRANSMISSION AND DISTRIBUTION 1,127,147 1,127,147 ELECTRICAL ENGINEERING 5,642,167 5,642,167 ADMINISTRATION 105,723 105,723 METER READING - SYSTEMS OPERATIONS - CURRENT YEAR BALANCE 1,600,360 1,591,660 CURRENT YEAR BALANCE -BOND - - TOTALS $ 10,350,687 $ 10,341,987

2009-2010 BUDGET ORDINANCES ELECTRIC RATE STABLIZATION RESERVE FUND SOURCES AND USE OF FUNDS FOR FISCAL 2009-2010 INFO ONLY ADJUSTED REVISED 2009-10 2009-10 BUDGET BUDGET PRIOR YEAR BALANCE $ 4,652,527 $ 4,652,527 RECEIPT FROM ELECTRIC REVENUE FUND - - RECEIPT FROM ELECTRIC CONTINGENCY - - INTEREST EARNINGS 76,600 76,600 TOTALS 4,729,127 4,729,127 TRANSFER TO ELECTRIC FUND 3,000,000 - CURRENT YEAR BALANCE 1,729,127 4,729,127 TOTALS $ 4,729,127 $ 4,729,127

2009-2010 BUDGET ORDINANCES PARKLAND/RECREATION RESERVE FUND SOURCES AND USE OF FUNDS FOR FISCAL 2009-2010 INFO ONLY ADJUSTED REVISED 2009-10 2009-10 BUDGET BUDGET PRIOR YEAR BALANCE $ 218,245 $ 218,245 GENERAL FUND APPROPRIATION - - PAYMENT IN LIEU OF PARKLAND - - TRANSFER FROM LIBRARY RESERVE - - TRANSFER FROM CTF - - INTEREST INCOME - - TOTALS 218,245 218,245 TRANSFER TO GENERAL CAPITAL PROJECTS FUND - 40,000 CURRENT YEAR BALANCE 218,245 178,245 TOTALS $ 218,245 $ 218,245 ADOPTED: MAY 10, 2010

EXHIBIT #6 Annual Council Meeting of 05/10/2010 CITY OF DOVER ORDINANCE #2010-02 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That Chapter 22 - Buildings and Building Regulations, Article III- Building Code, be amended to read as follows: ARTICLE III BUILDING CODE Sec. 22-61 Adopted. (a) International Building Code adopted. Certain documents, three (3) copies of which are on file in the licensing and permitting office of the city being marked and designated as “The International Building Code, 2009 Edition” as published by the International Code Council be and is hereby adopted as the Building Code of the City of Dover in the State of Delaware; for the control of buildings and structures as herein provided; and each and all of the regulations, provisions, penalties, conditions and terms of said International Building Code, are hereby referred to, adopted and made a part hereof as if fully set out in this section, with the additions, insertions, deletions and changes as follows: Section 101.1 Title. Insert “City of Dover, DE” in place of “[NAME OF JURISDICTION]” 105.2 Work exempt from permit. Building: 1. One-story detached accessory structures used as tool and storage sheds, playhouses and similar uses, provided that the floor area does not exceed 120 square feet. 2. Oil derricks. 3. Sidewalks and driveways not more than 30 inches (762 mm) above adjacent grade and not over any basement or story below. 4. Painting, papering, tiling, carpeting, cabinets, countertops and similar finish work. 5. Temporary motion picture, television and theater stage sets and scenery. 6. Prefabricated swimming pools accessory to a Group R-3 occupancy provided that the swimming pools are not designed to retain a depth of 24” (610 mm) or more, and do not exceed 5,000 gallons (18925L) and installed entirely above ground. 7. Shade cloth structures constructed for nursery or agricultural purposes, not including service systems. 8. Swings and other playground equipment accessory to a one or two-family dwelling. 9. Window awnings supported by an exterior wall which do not project more than 54 inches (1372 mm) from the exterior wall and do not require additional support of Group R-3 and U Occupancies. 10. Non-fixed and movable fixtures, cases, racks, counters and partitions not over 5 feet 9 inches (1753 mm) in height.

Section 105.5. Expiration. Insert the following text following the word “demonstrated” at the end of the section: “and does not exceed the 3 year time limit as stated in 105.5.2.”; and insert the following subsections: 105.5.1 Time limitation of permit. A permit for any activity for which a permit is required shall be valid for 180 days from the date of issuance. One 180-day extension may be granted without additional charge to the permit holder. Additional 180-day extensions may be granted with payment of a renewal fee as specified in Appendix F: Fees and Fines. 105.5.2 Completion of construction. All construction for which a building permit is required must be completed and pass final inspection within three (3) years after issuance of the building permit. If not completed within three (3) years, a new building permit must be obtained and any associated fees paid incurred by the previous submission. SECTION 107 SUBMITTAL DOCUMENTS 107.1 Submittal documents. Insert: "Construction documents, statement of special inspections, structural observation programs and other data, for new construction, alterations, repairs, expansion, additions or modifications of buildings or structures, which involve the practice of architecture or engineering, as defined by the professional registration laws of the State of Delaware shall be prepared by a registered design professional consistent with the professional registration laws of the State of Delaware. Construction documents shall include the name, address and license or registration number of the registered design professional and shall be signed, sealed and dated by the registered design professional in accordance with the professional registration or licensing laws, statutes, regulations or administration provisions of the State of Delaware." in place of "Submittal documents consisting of construction documents, statement of special inspections, geotechnical report and other data shall be submitted in two or more sets with each permit application. The construction documents shall be prepared by a registered design professional where required by the statues of the jurisdiction in which the project is to be constructed." Section 109.3 Insert: “see Section 22-65 Fees for permits” in place of “in accordance with the schedule as established by the applicable governing authority”. New construction valuation will be confirmed using the most current ICC valuation chart information unless otherwise approved by the authority having jurisdiction. Section 113 BOARD OF APPEALS. See Chapter 22 – Buildings and Building Regulations, Article I – In General, Sec. 22-1 Construction code appeals committee. Section 114.4 Violation Penalties. Any person who violates a provision of this code or fails to comply with any of the requirements thereof or who erects, constructs, places, alters, repairs, a building or structure in violation of the approved construction documents or directive of the building inspector, or of a permit or certificate issued under the provisions of this code shall be charged with a violation of this code and be guilty of a misdemeanor, punishable by a fine as provided for in Appendix F--Fees and Fines, or by imprisonment thirty (30) days, or both such fine and imprisonment. Each day that a violation continues shall be deemed a separate offense. Section 114.3 Unlawful continuance. Insert: "Any person who shall continue any work after having

been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be charged with a violation of this section and shall be fined as provided for in Appendix F--Fees and Fines. Repeat offenders shall not receive warnings and shall instead be subject to progressively increasing fines as provided for in Appendix F--Fees and Fines. Each day that a violation continues shall be deemed a separate offense." in place of: "Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform a violation or unsafe condition, shall be subject to penalties as prescribed by law." Section 1612.3 Establishment of flood hazard areas. Insert “Kent County” in place of, “[INSERT NAME OF JURISDICTION]” and “May 5, 2003” in place of “[INSERT DATE OF ISSUANCE]” Section 3410.2 Applicability. Insert “April 4, 1984" in place of [DATE TO BE INSERTED BY THE JURISDICTION. NOTE: IT IS RECOMMENDED THAT THIS DATE COINCIDE WITH THE EFFECTIVE DATE OF BUILDING CODES WITHIN THE JURISDICTION]. (b) International Residential Code Adopted. That certain documents, three (3) copies of which are on file in the licensing and permitting office in the city, being marked and designated as the International Residential Code 2009 edition, as published by the International Code Council, be and is hereby adopted as the code of the city for regulating the design, construction, quality of materials, erection, installation, alteration, repair, location, relocation, replacement, addition to, use or maintenance of building, mechanical, plumbing and electrical systems in the City of Dover and providing for the issuance of permits and collection of fees therefore; and each and all of the regulations, provisions, conditions and terms of such International Residential Code, as referenced in the Building Code adopted in subsection(a), published by the International Code Council, on file in the office of the city are hereby referred to, adopted and made a part hereof as if fully set out in this section. The following sections of the International Residential Code are hereby revised: Section 101.1 Title. Insert “City of Dover, DE” in place of “[NAME OF JURISDICTION]” Section R105.2. Work exempt from permit, Building - 1. Insert “120” in place of “200". Delete numbers 2 through 5 in their entirety. Replace number 7 with the following: “Prefabricated swimming pools accessory to a Group R-3 occupancy provided that the swimming pools are not designed to retain a depth of 24” (610 mm) or more, and do not exceed 5,000 gallons (18925L) and installed entirely above ground. SECTION R106 CONSTRUCTION DOCUMENTS R106.1 Submittal documents. Insert: “Construction documents, statement of special inspections, structural observation programs and other data, for new construction, alterations, repairs, expansion, additions or modifications of buildings or structures, shall be submitted in 2 sets and as defined by the professional registration laws of the State of Delaware and be prepared by a registered design professional consistent with the professional registration laws of the State of Delaware. Construction documents shall include the name, address and license or registration number of the registered design professional and shall be signed, sealed and dated by the registered design professional in accordance with the professional registration or licensing laws, statutes, regulations or administration provisions of the State of Delaware.” in place of “shall be prepared by a registered design professional where required by the statues of the jurisdiction in which the project is to be constructed”. Where special conditions

exist, the building official is authorized to require additional construction documents as described here. Exception: The building official is authorized to waive the submission of construction documents and other data not required to be prepared by a registered design professional if it is found that the nature of the work applied for is such that review of construction documents is not necessary to obtain compliance with this code. SECTION R108 FEES R108.2 Schedule of permit fees. Insert “see Section 22-65 Fees for permits” in place of “in accordance with the schedule as established by the applicable governing authority”. SECTION R112 BOARD OF APPEALS See Chapter 22 – Buildings and Building Regulations, Article I – In General, Sec. 22-1 Construction code appeals committee. SECTION R113 VIOLATIONS Section 113.4 Violation Penalties. Insert "See Section 22-61 (a) Section 113.4 Violation Penalties" in place of "Any person who violates a provision of this code or fails to comply with any of the requirements thereof or who erects, constructs, places, alters, repairs, a building or structure in violation of the approved construction documents or directive of the building inspector, or of a permit or certificate issued under the provisions of this code, shall be subject to penalties as prescribed by law." SECTION R114 STOP WORK ORDER Section R114.2 Unlawful continuance. Insert: “See Section 22-61 (a) International Building Code, Section 114.3 Unlawful continuance" in place of "Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform a violation or unsafe condition, shall be subject to penalties as prescribed by law." TABLE R301.2(1) CLIMATIC AND GEOGRAPHIC DESIGN CRITERIA Subject to D amage From W ind D esign G round Seismic W inter Ice Barrier A ir M ean D esign Frost Flood A nnual Snow d D esign U nderlayment Freezing Speed Topographic C ategory W eathering line H azards g Temperature Load f a Termite c Temp e R equired h Index i j (mph) effects k D epth b 95 gust M oderate M ay 5, 25 77 fastest NO A Severe 24” To H eavy 14º NO 450 55º 2003 Table R301.5 MINIMUM UNIFORMLY DISTRIBUTED LIVE LOADS. Insert the following at the end of footnote “c”: Calculations demonstrating compliance with the minimum live load shall be provided by a registered design professional for stairs and fire escapes that do not have additional “stringer” or “carriage” support located and equally distributed in the middle section of the stair width. SECTION R313 AUTOMATIC FIRE SPRINKLER SYSTEMS – Delete this section in its entirety. CHAPTER 4 FOUNDATIONS

SECTION R403 FOOTINGS R403.1.1 Minimum size. Insert “The minimum thickness of a footing shall be the nominal width of the wall but not less than 8 inches. The nominal width of the footings shall be twice the nominal thickness of the wall. Two story sections of a building shall have a minimum footing width of 24 inches and a minimum footing depth of 10 inches.” in place of “ Minimum sizes for concrete and masonry footings shall be as set forth in Table R403.1 and Figure R403.1(1). The footing width, W, shall be based on the load-bearing value of the soil in accordance with Table 401.4.1. Spread footings shall be at least 6 inches in thickness. Footing projections, P, shall be at least 2 inches and shall not exceed the thickness of the footing.” Insert “, but in all cases shall be a minimum of 24 inches x 24 inches x 12 inches deep.” at the end of the following sentence: “The size of footings supporting piers and columns shall be based on the tributary load and allowable soil pressure in accordance with Table 401.4.1.” R403.1.2 Continuous footings in Seismic Design Categories D1 and D2. Delete in its entirety and Insert: R403.1.2 Footing reinforcement. Footings shall be reinforced with a minimum of two #4 rebar wired together with a minimum 15” overlap; pier footings with a minimum of two #4 rebar wired together in two directions, and column footings with three #4 rebar wired together in two directions. R403.1.3 Seismic reinforcing. Delete in its entirety R403.1.4 Minimum Depth. Insert “24" in place of “12". Amend R403.1.4.1 Frost protection - Exceptions to read: 1. Frost Protection of freestanding residential accessory / utility structures with an area of 240 square feet or less and an eave height of 10 feet or less, except for pole buildings and garages, shall not be required to be frost protected. Freestanding accessory structures (sheds) between 120 sf and 240 sf shall be secured with tie-downs or equivalent manufactured home fastening devices on each corner. Structures 20 feet or more in length shall have additional anchors attached in the center of each side unless frost protection applies as stated herein. All accessory / utility structures greater than 240 square feet, all pole buildings and all garages shall have frost protection (footings). 2. Decks not supported by a dwelling shall also be provided with footings that extend below the frost line. Single story supported in part by a dwelling and with 4” x 4” posts shall have footings that are a minimum of 8 inches in diameter; with 6” x 6” posts a minimum of 12” diameter is required; the bottom of all such footings shall be a minimum of 24” below finished grade and be at least 6” deep. 3. Footings shall not bear on frozen soil unless such frozen condition is of a permanent character. (c) The ICC Performance Code for Buildings and Facilities. That certain documents, three (3) copies of which are on file in the licensing and permitting office of the city being marked and designated as “The ICC Performance Code for Buildings and Facilities 2009 Edition” as published by the International Code Council be and is hereby adopted as the Performance Code of the City of Dover in the State of Delaware; for, regulating and governing the performance- based design, construction, quality of materials, erection, installation, alteration, repair, location, relocation, replacement, addition to, use or maintenance of building and/or fire protection systems in the City of Dover.

(d) The International Existing Building Code. That certain documents, three (3) copies of which are on file in the licensing and permitting office of the city being marked and designated as “The International Existing Building Code 2009 Edition” as published by the International Code Council be and is hereby adopted as the Existing Building Code of the City of Dover in the State of Delaware; for, regulating and governing the repair, alteration, change of occupancy, addition and relocation of existing buildings, including historic buildings, as herein provided. (e) The International Energy Conservation Code. That certain documents, three (3) copies of which are on file in the licensing and permitting office of the city being marked and designated as “The International Energy Conservation Code 2009 Edition” as published by the International Code Council be and is hereby adopted as the Energy Conservation Code of the City of Dover in the State of Delaware; for, regulating and governing energy efficient building envelopes and installation of energy efficient mechanical, lighting and power systems as herein provided. BE IT FURTHER ORDAINED: That Chapter 22 - Buildings and Building Regulations, Article V - Mechanical Code, be amended to read as follows: ARTICLE V MECHANICAL CODE Sec. 22-141. Adopted. (a) Certain documents, three (3) copies of which are on file in the licensing and permitting office of the city, being marked and designated as the International Mechanical Code 2009 Edition, including appendix chapter "A", as referenced in the building code adopted in 22-61(a), published by the International Code Council, be and is hereby adopted as the code of the city for regulating the design, construction, quality of materials, erection, installation, alteration, repair, location, relocation, replacement, addition to, use or maintenance of mechanical systems in the city and providing for the issuance of permits and collection of fees therefore; and each and all of the regulations, provisions, conditions and terms of such International Mechanical Code, as referenced in the building code adopted in section 22-61(a), published by the International Code Council, on file in the office of the city are hereby referred to, adopted and made a part hereof as if fully set out in this section. The following sections of the International Mechanical Code are hereby revised: Section 101.1 Title. Insert "City of Dover, DE" in place of "[NAME OF JURISDICTION]" 106.5 Fee Schedule. Insert "See DCO Section 22-145 Heating, air conditioning, and heat pump permit fees" in place of “The fees for all mechanical work shall be as indicated in the following schedule:” Section 106.5.3 Fee refunds. Delete in its entirety. SECTION 108 VIOLATIONS Section 108.4 Violation Penalties. Insert "See Section 22-61(a) International Building Code Section 113.4, Violation Penalties" in place of "Any person who shall violate a provision of this code or shall fail to comply with any of the requirements thereof or who shall erect, install, alters, or repair, a plumbing work in violation of the approved construction documents or

directive of the code official, or of a permit or certificate issued under the provisions of this code, shall be guilty of a [SPECIFY OFFENSE], punishable by a fine of not more than [AMOUNT], or by imprisonment not exceeding thirty (30) days, or both such fine and imprisonment. Each day that a violation continues after due notice has been served shall be deemed a separate offense." Section 108.5 Stop work orders. Insert "See 22-61(a) International Building Code, Section 114.3 Unlawful continuance" in place of "Upon notice from the code official that mechanical work is being done contrary to the provisions of this code or in a dangerous and unsafe manner such work shall immediately cease. Such notice shall be in writing and shall be given to the owner of the property, or to the owner's agent, or to the person doing the work. The notice shall state the conditions under which work is authorized to resume. Where an emergency exists, the code official shall not be required to give a written notice prior to stopping work. Any person who shall continue any work in or about the structure after having been served with a stop work order, except such work as that person is directed to remove a violation or unsafe condition, shall be charged with a violation of this section and shall be liable to a fine of not less than [AMOUNT] dollars or more than [AMOUNT] dollars" SECTION 109 MEANS OF APPEAL Delete Section in its entirety. (b) If any section, subsection, sentence, clause or phrase of this section is, for any reason, held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this section. The city council hereby declares that it would have passed the ordinance from which this section derives, and each section, subsection, clause or phrase thereof, irrespective of the fact that any one (1) or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. BE IT FURTHER ORDAINED: That Chapter 22- Buildings and Building Regulations, Article VI - Plumbing Code be amended to read as follows: ARTICLE VI. PLUMBING CODE Sec. 22-181. Adopted. (a) Certain documents, three (3) copies of which are on file in the licensing and permitting office in the city, being marked and designated as International Plumbing Code 2009, including appendix chapters B, C, D, E, F, G, as referenced in the building code adopted in 22-61(a), published by the International Code Council, be and is hereby adopted as the code of the City of Dover for regulating the design, construction, quality of materials, erection, installation, alteration, repair, location, relocation, replacement, addition to, use or maintenance of plumbing systems in the city and providing for the issuance of permits and collection of fees therefore; and each and all of the regulations, provisions, conditions and terms of such International Plumbing Code, as referenced in the building code adopted in 22-61(a), published by the International Code Council, on file in the office of the City of Dover are hereby referred to, adopted and made a part hereof as if fully set out in this section. The following sections are hereby revised: Exception: The 2009 International Private Sewage Disposal portion of this code is not adopted, as enforced by other authorities having jurisdiction.

Section 101.1 Title. Insert “City of Dover, DE” in place of “[NAME OF JURISDICTION]” Section 106.6.2 Fee Schedule. Insert “See Section 22-65 Permit Fees” in place of “The fees for all plumbing work shall be as indicated in the following schedule: [JURISDICTION TO INSERT APPROPRIATE SCHEDULE]”. Section 106.6.3 Fee refunds. Delete in its entirety. Section 108.4 Violation Penalties. Insert: “See Section 22-61(a) International Building Code Section 113.4, Violation Penalties” in place of “Any person who shall violate a provision of this code or shall fail to comply with any of the requirements thereof or who shall erect, install, alters, or repair, a plumbing work in violation of the approved construction documents or directive of the code official, or of a permit or certificate issued under the provisions of this code, shall be guilty of a [SPECIFY OFFENSE], punishable by a fine of not more than [AMOUNT] dollars or by imprisonment not exceeding [NUMBER OF DAYS], or both such fine and imprisonment. Each day that a violation continues after due notice has been served shall be deemed a separate offense.” Section 108.5 Stop work orders. Insert “See Section 22-61(a) International Building Code, Section 114.3 Unlawful continuance” in place of “Upon notice from the code official, work on any plumbing system that is being done contrary to the provisions of this code or in a dangerous and unsafe manner shall immediately cease. Such notice shall be in writing and shall be given to the owner of the property, or to the owner’s agent, or to the person doing the work. The notice shall state the conditions under which work is authorized to resume. Where an emergency exists, the code official shall not be required to give a written notice prior to stopping work. Any person who shall continue any work in or about the structure after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be charged with a violation of this section and shall be liable to a fine of not less than [AMOUNT] dollars or more than [AMOUNT] dollars” (b) International Fuel and Gas Code. That certain documents, three (3) copies of which are on file in the licensing and permitting office of the city being marked and designated as “The International Fuel and Gas Code, 2009 Edition” as published by the International Code Council be and is hereby adopted as the Fuel and Gas Code of the City of Dover in the State of Delaware; for regulating and governing fuel gas systems and gas fired appliances as herein provided. (c) That if any section, subsection, sentences, clause or phrase of this section is, for any reason, held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this section. The city council hereby declares that it would have passed the ordinance from which this section derives, and each section, subsection, clause and phrase therefore, irrespective of the fact that any one (1) or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. BE IT FURTHER ORDAINED: That Chapter 22 Buildings and Building Regulations, Article VII - Property Maintenance Code , Sec. 22-221. Adopted, be amended to read as follows: ARTICLE VII. PROPERTY MAINTENANCE CODE

Sec. 22-221 Adopted. (a) A certain document, three (3) copies of which are on file in the licensing and permitting office of the city, being marked and designated as "The International Property Maintenance Code, 2009" as published by the International Code Council, be and is hereby adopted as the Property Maintenance Code of the City of Dover, in the State of Delaware; for the control of buildings and structures as herein provided; and each and all of the regulations, provisions, penalties, conditions and terms of said property maintenance code are hereby referred to, adopted, and made a part hereof, as if fully set out in this section, with the following additions, insertions, deletions and changes: Section 101.1 Title. Insert “City of Dover, DE” in place of “[NAME OF JURISDICTION]” SECTION 111 MEANS OF APPEAL See Chapter 22 – Buildings and Building Regulations, Article VII – Property Maintenance Code, Sec. 22-225 Property maintenance code board of appeals. Section 304.14 Insect screens. Insert "March 1st to November 30th" in place of "[date] to [date]". Section 602.3 Heat supply. Insert "September 15th to May 1st" in place of "[date] to [date]". Section 602.4. Occupiable work spaces. Insert "September 15th to May 1st" in place of "[date] to [date]". (b) It shall be unlawful for any person to violate any of the provisions of the publication adopted in subsection (a). BE IT FURTHER ORDAINED: That Chapter 46 - Fire Prevention and Protection, Article III - Fire Codes, sec. 46-121. Adopted, be amended to read as follows: Sec 46-121Adopted (a)International Fire Code adopted. A certain document, three (3) copies of which are on file in the licensing and permitting office of the city, being marked and designated as "International Fire Code, 2009 Edition," as published by the International Code Council, be and is hereby adopted as the Fire Prevention Code of the City of Dover in the State of Delaware; for the control of buildings, structures and premises as herein provided; and each and all of the regulations, provisions, penalties, conditions and terms of said International Fire Code, are hereby referred to, adopted and made part hereof as if fully set out in this section, with additions, insertions, deletions and changes as follows: (b) Section 101.1 Insert "City of Dover", in place of [NAME OF JURIDICTION]. Delete in their entirety: Sections 105.6 Required operational permits, through 105.7.12 Temporary membrane structures, tents, and canopies. (b) National Fire Codes adopted. There is hereby adopted the most recently published edition of the National Fire Prevention Association's (NFPA) National Fire Codes (excluding NFPA Codes 11C, 13E, 402M, -41s, 422, 424M-473, 901-906, 1001-1041, 1201-1410, 1452-1999, 5000), three (3) copies of which are on file in the office of the fire marshal.

(c) The more restrictive provisions of the International Fire Codes as set forth in subsection (a) above or the National Fire Codes as set forth in subsection (b) above shall apply whenever they may be in conflict. (d) It shall be unlawful for any person to violate any of the provisions of the publications adopted in subsection (a) or (b). BE IT FURTHER ORDAINED: That Appendix F – Fees and Fines, Chapter 22- Buildings and Building Regulations be amended by inserting the text shown in blue, bold and deleting the text shown in red, bold, strike-through, as follows: Chapter 22--Buildings and Building Regulations, Article III--Building Code Fines not paid within 14 days of the day the fine was issued, including the day the fine was issued, shall be automatically doubled in amount. Sec. 22-61 Adopted ( International Building Code ) Sec. 105.5.1 Expiration; Additional 180 day extensions may $25.00 per 180-day be granted with payment of a renewal fee… extension Violation penalties; Each day that a violation Fine of not less than $100.00 Sec. 113.4 continues shall be deemed a separate or more than $10,000.00 offense.......... Sec. 114.3 Unlawful continuance First offense.......... $100.00 Second offense.......... $250.00 Third offense.......... $500.00 No less than $1,000.00 Fourth and subsequent offenses.......... and no more than $10,000.00 ADOPTED: MAY 10, 2010