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REGULAR COUNCIL MEETING AGENDA May 23, 2011 - 7:30 P.M. - Council Chambers - City Hall - City of Dover OPEN FORUM - 15 MINUTES PRIOR TO OFFICIAL MEETING (7:15 P.M.) INVOCATION BY CHAPLAIN WALLACE DIXON PLEDGE OF ALLEGIANCE LED BY COUNCILMAN BONAR AGENDA ADDITIONS/DELETIONS * CONSENT AGENDA Those items on the Council Agenda which are considered routine and non-controversial shall be marked with an asterisk (*) and will be acted upon by a single roll call vote of the Council. There will be no separate discussion of these items unless a member of Council so requests, in which event the matter shall be removed from the Consent Agenda and considered a separate item. * 1. Adoption of Minutes - Annual Council Meeting of May 9, 2011 2. Presentations - Delaware Library Association’s Distinguished Service Citations A. Zach Carter B. Anthony J. DePrima C. Eugene B. Ruane 3. Public Hearing - Proposed Resolution No. 2011-10 - Approving Issuance of Certain Bonds or Notes by the Robbins Hose Company No. 1 of Dover, Delaware 4. Setting of Electric Fund Budget Public Hearing (Recommended that a Public Hearing be set for June 13, 2011 at 7:30 p.m.) * 5. Appointment - Recommended by Council President Leary - Chaplain Wallace Dixon - City Chaplain (Annual Appointment expires June 2012) * 6. Council President Appointments - 2011/2012 Committees (Annual Appointments Deferred During the Meeting of May 9, 2011) A. Legislative, Finance, and Administration Committee B. Parks, Recreation, and Community Enhancement Committee C. Safety Advisory and Transportation Committee D. Utility Committee E. Compensation Commission F. Construction Code Board of Appeals G. Other Post-Employment Benefits (OPEB) Trust Fund Board H. Retirement Committee - General Employee Pension Plan I. Retirement Committee - Police Pension Plan

Council Agenda - May 23, 2011 Page 2 * 7. Council President Appointments - 2011/2012 Miscellaneous (Annual Appointments Deferred During the Meeting of May 9, 2011) A. Kent County Tourism B. Kent Economic Partnership C. Liaison to Chamber of Commerce and Greater Dover Committee D. Liaison to Kent County (City/County Committee) * 8. Appointments Recommended by Mayor Carleton E. Carey, Sr. A. Dover Housing Authority - Enrico LePore (To Fill Expired Term of Courtesty M. Little, Jr. - Term to Expire August 15, 2012) B. Dover Public Library Advisory Commission - Edward J. Hynes (To Fill Unexpired Term of David Lewis - Term to Expire June 16, 2012) 9. Council Members Announcements /tm S:\AGENDAS & MINUTES\Council-Agendas\2011\05-23-2011.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ANNUAL COUNCIL MEETING The Annual Council Meeting was held on May 9, 2011 at 7:30 p.m. with Mayor Carey presiding. Council members present were Council President Hogan, Mr. Bonar, Mr. Leary, Mr. McGiffin, Dr. McGlumphy, Mr. Ruane, Mrs. Russell, Mr. Salters, and Mrs. Williams. Council staff members present were Police Chief Hosfelt, Ms. Russell, Mrs. Mitchell, Mrs. Townshend, Fire Chief Fortney, Mr. DePrima, City Solicitor Rodriguez, and Mrs. McDowell. The invocation was given by Pastor Steve LaMotte of Hope United Methodist Church, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. Bonar moved for approval of the agenda as presented, seconded by Mrs. Russell and unanimously carried. ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF APRIL 25, 2011 The Minutes of the Regular Council Meeting of April 25, 2011 were unanimously approved by motion of Mr. Leary, seconded by Mr. McGiffin and bore the written approval of Mayor Carey. PROPOSED RESOLUTION NO. 2011-05 - KENNETH L. HOGAN The City Clerk read the following Resolution into the record: WHEREAS, Kenneth L. Hogan was sworn into office as Councilman of the First District on May 10, 2004 and served with distinction until May 9, 2011; and WHEREAS, during his seven years of service to the citizens of Dover, Kenneth L. Hogan served as Council President and Vice Mayor; as Chair of the Safety Advisory and Transportation Committee, the Civilian Pension Board, the Assessment Appeals Committee, the Special Recreational Vehicle Sub-Committee of the Safety Advisory and Transportation Committee, and the Ad-Hoc Haggerty and Haggerty Review Committee; as a Member of the Legislative, Finance, and Administration Committee, the Parks, Recreation, and Community Enhancement Committee, the Utility Committee, the Police Pension Board, the Other Post-Employment Benefits Trust Fund Board, the Dover 2030 Energy Committee, and Kent County Tourism; and as a Liaison to Kent County, the Central Delaware Chamber of Commerce, and the Greater Dover Committee; and WHEREAS, throughout his tenure, Kenneth L. Hogan demonstrated the ability to consider diverse points of view and to develop innovative and pragmatic solutions to the complex problems encountered by the municipality; exhibited a keen eye for detail and an analytical mind that served the City well in considering matters brought before Council; and WHEREAS, Kenneth L. Hogan displayed a quality of leadership that streamlined the conduct of City business, fostered the respect of his colleagues, and greatly contributed to the ability of Council to reach consensus and accomplish its goals.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 2 NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council recognize that Kenneth L. Hogan will be sorely missed and express their sincere appreciation to him and his 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 Council President Hogan 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 Kenneth L. Hogan. ADOPTED: MAY 9, 2011 Mr. Bonar moved for adoption of Resolution No. 2011-05, seconded by Mr. Leary and unanimously carried. Mayor Carey and members of Council presented Council President Hogan with the Resolution, a gavel, a Dover Cup, a Friends of the Dover Public Library cookbook, and a key to the City. Council President Hogan stated that it was a pleasure to serve as a member of City Council over the past seven (7) years and noted that his tenure encompassed both great and challenging times. He noted he had the pleasure of working with 13 other members of Council, including Mr. Salters, Mr. Leary, Mr. Ruane, Mr. McGiffin, and Mr. Slavin and expressed his pride in the City staff. Mr. Hogan commended Mr. Anthony DePrima, City Manager, for his knowledge and job performance; Mrs. Traci McDowell, City Clerk, for the professionalism and quality of work performed by the Clerk’s Office (noting that this office is the “most fun” and the “place to go”); Mrs. Ann Marie Townshend, Director of Planning and Community Development; Mrs. Donna Mitchell, Treasurer/Controller; Ms. Cheryl Russell, Tax Assessor; and Chief of Police James Hosfelt. He also expressed appreciation for one of his favorite people, Chaplain Wallace Dixon. Mr. Hogan noted that a great deal of hard work was performed over the past seven (7) years and expressed pride in projects undertaken, such as construction of the John W. Pitts Recreation Center and the new Dover Public Library currently in progress. He recalled time spent preparing City budgets, noting that, once, members met for over 21 hours to review the budget. He commended the City on being ranked as the second best place to live in Delaware, as noted in a recent issue of Delaware Today magazine. Mr. Hogan noted that on the evening Council voted to approve construction of the new Dover Public Library, he committed to making a contribution to the Teen Loft and stated that he would present a personal donation, in the amount of $1,000, this evening, along with other donations he was provided. He advised members that he would now actually be retiring and enjoying his retirement. He wished City Council members good luck and requested that they continue to make this City great. PROPOSED RESOLUTION NO. 2011-06 - JAMES G. MCGIFFIN, JR. The City Clerk read the following Resolution into the record: WHEREAS, James G. McGiffin, Jr. was sworn into office as Councilman of the Third District on August 14, 2006 and served with distinction until May 9, 2011; and

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 3 WHEREAS, during his four and one-half years of service to the citizens of Dover, James G. McGiffin, Jr. served as Chair of the Construction Code Board of Appeals and the Tax Exemption Review Ad-Hoc Committee; as a Member of the Legislative, Finance, and Administration Committee, the Safety Advisory and Transportation Committee, the Utility Committee, the Civilian and Police Pension Boards, the Assessment Appeals Committee, the Other Post-Employment Benefits Trust Fund Board, and the Education Liaison Committee; and as a Liaison to Kent County; and WHEREAS, throughout his tenure, James G. McGiffin, Jr. cultivated a climate of cooperation and civility in the conduct of City business; inspired and encouraged all those who sought the betterment of the City by recognizing and affirming their efforts; and displayed his ability to bring about compromise among diverse individuals through his insight and empathy, as well as through the strategic use of his unique sense of humor; and WHEREAS, James G. McGiffin, Jr. was instrumental in instituting traffic solutions in the City which enhanced pedestrian safety; demonstrated sensitivity to the needs of the underprivileged; and served as a spokesperson for those groups and individuals whose concerns are sometimes overlooked. NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council recognize that James G. McGiffin, Jr. will be sorely missed and express their sincere appreciation to him and his 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 McGiffin 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 James G. McGiffin, Jr. ADOPTED: MAY 9, 2011 Mr. Leary moved for adoption of Resolution No. 2011-06, seconded by Mr. Salters and carried with Mr. McGiffin abstaining. Mayor Carey and members of Council presented Councilman McGiffin with the Resolution, a commemorative piece depicting the new Dover Public Library (provided to Mr. Hogan and Mr. Ruane during the groundbreaking ceremony for the library), a Dover Cup, a Friends of the Dover Public Library cookbook, and a key to the City. Mr. McGiffin stated that Dover is a great place because of the people who live in the City, the business and professional pursuits that take place in Dover, and the City staff who serve all interests. He thanked those individuals who were very helpful to him when he was elected to serve as a member of Council. He relayed special appreciation to Mr. DePrima and concurred with Mr. Hogan’s comments regarding the City Manager; Mrs. Theresa Tieman, Senior City Administrator, for her exhaustive knowledge of the Budget; Mrs. Mitchell; Mrs. Townshend, who he stated remains positive, although her position requires her to interface with the public in

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 4 challenging situations; Mr. Scott Koenig, Public Services Manager/Director of Public Works; Mr. Ron Lunt, Director of Public Utilities; Ms. Russell, who Mr. McGiffin stated brought customer-friendly services to the office; Mr. William Neaton, Economic Development Manager, who he stated is a wonderful addition to the City Staff; and Police Chief Hosfelt for maintaining the great Department that he inherited. Mr. McGiffin gave special mention to Mr. Andrew Siegel, IT Director for his assistance and to the volunteers of the Dover Fire Department for their service. He thanked the City Clerk’s Office staff, including Mrs. Traci McDowell, City Clerk; Ms. Denise Devine, Assistant City Clerk; and Mrs. Amber Clendaniel and Mrs. Jody Stein, Administrative Assistants, and stated he was amazed at the manner in which they provide support to the City Council. To those members of Council who will no longer serve and to those who will continue, Mr. McGiffin indicated that it was an honor and privilege to serve with them. Mr. McGiffin stated that he had heard speculation that the May 2011 election would have a profound impact on the City and that the election results were a mandate for the way the City should conduct business. He noted that the number of votes cast in the most contested race in the election amounted to 5.7% of the total votes, which amounted to one-half of 1% of the electorate and .3% of the number of people who live in Dover; therefore, he did not consider this to represent a mandate for change. Mr. McGiffin indicated he felt that the election results should dictate that the new Council should govern today and tomorrow as the previous Council did in the past. He advised members that, in order to be effective in the long term, City Council must foster a culture of mutual respect and stated that this is crucial if Council is to accomplish any work. Mr. McGiffin stated this mutual respect should flow between constituents and Council, employer and employees, and among the nine (9) members who have the honor and responsibility of serving on Council. He noted that members may not always agree on matters being considered; however, he stated the importance of maintaining respect for each other. He indicated that without respect, nothing gets accomplished and accomplishments are what have made Dover great. Mr. McGiffin wished everyone much luck and Godspeed. PROPOSED RESOLUTION NO. 2011-07 - EUGENE B. RUANE The City Clerk read the following Resolution into the record: WHEREAS, Eugene B. Ruane was sworn into office as Councilman of the Second District on May 14, 2001 and served with distinction until May 9, 2011; and WHEREAS, during his ten years of service to the citizens of Dover, Eugene B. Ruane served as Chair of the Utility Committee, the Parks, Recreation, and Community Enhancement Committee, the Transportation Review Committee, the Civilian Pension Board, the Assessment Appeals Committee, and the Construction Code Board of Appeals; as a Member of the Legislative, Finance, and Administration Committee, the Dover Public Library Advisory Commission, the Dover Library Foundation, the Police Pension Board, the Dover 2030 Energy Committee, the Financial Oversight Committee, the Consolidated Plan Advisory Group; and as a Liaison to Kent County and the Central Delaware Economic Development Council; and WHEREAS, throughout his tenure, Eugene B. Ruane performed painstaking research and paid great attention to detail in considering the concerns of the City; displayed a remarkable ability to analyze and retain information and provide insight regarding the implications of Council’s decisions; and consistently demonstrated persistence in resolving the concerns of his constituents; and

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 5 WHEREAS, Eugene B. Ruane’s vision and determination were instrumental in realizing the goal of establishing a new Dover Public Library in Downtown Dover; and his refusal to accept the status quo and his passionate pursuit of excellence greatly benefitted the citizens of Dover. NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council recognize that Eugene B. Ruane will be sorely missed and express their sincere appreciation to him and his 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 Ruane 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 Eugene B. Ruane. ADOPTED: MAY 9, 2011 Mr. Bonar moved for adoption of Resolution No. 2011-07, seconded by Mr. Salters and unanimously carried. Mayor Carey and members of Council presented Councilman Ruane with the Resolution, a Dover Cup, a Friends of the Dover Public Library cookbook, and a key to the City. Mr. Ruane advised members that he had an opportunity previously to personally thank staff and reminded members of the important, long-term service provided by City Solicitor Rodriguez. He echoed the comments made by Mr. Hogan and Mr. McGiffin, stating that many individuals tell their stories every day by their dedication and love for the City. He noted that he has learned what makes a great city and how the future of a city is shaped by the Council, Mayor, employees, and citizens. Mr. Ruane requested a friendly amendment to Resolution No. 2011-07, as follows: “WHEREAS, Eugene Ruane would never have been elected to the Dover City Council nor have served five (5) two-year terms without the support of voters in the Second District; and WHEREAS, Eugene Ruane would never have been able to help provide citizens with access to their City government and provide assistance to any constituent without the responsiveness of the City Clerk's Office, the City Manager, the Heads of City Departments and the City's loyal employees; and WHEREAS, Eugene Ruane would never have been able to pass a single resolution, budget, ordinance, or policy without the support of at least four (4) other Council members; and WHEREAS, Eugene Ruane would never have been able to chair any Council committee nor serve effectively as a member of any Council committee without the dedicated and professional assistance provided by the City Clerk's Office, the City Manager, Department Heads, and the participation of other Council members and the citizen members of those Committees; and

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 6 WHEREAS, Eugene Ruane would never have been able to successfully promote an indoor recreational facility, already in daily use, nor the new Dover library, which is happily now under construction, without the work and leadership provided by other members of the City Council, the City Manager, the Director of the Department of Parks and Recreation, the Dover Library Director, the original Dover Recreational Facilities Committee that was established by the Mayor and Council in 1996, the existing Library Commission, the Library Steering Committee, the Library Foundation, the Friends of the Dover Library, and the many other citizen volunteers and financial donors who are still actively promoting its completion. Now, therefore, I thank all of the above named voters, elected and appointed officials, City of Dover employees, and other individuals and organizations for their encouragement, support, assistance, kindness, and friendship during the years I was honored to serve as a member of the Dover City Council.” PROPOSED RESOLUTION NO. 2011-08 - REUBEN SALTERS The City Clerk read the following Resolution into the record: WHEREAS, Reuben Salters was sworn into office as Councilman of the Fourth District on May 8, 1989 and served with distinction until May 9, 2011; and WHEREAS, during his twenty-two years of service to the citizens of Dover, Reuben Salters served as Council President and Vice Mayor; Chair of the Legislative, Finance, and Administration Committee, the Safety Advisory Committee, the Civilian and Police Pension Boards, and the Property Assessment Appeals Committee; as a Member of the Parks and Recreation Committee, the Utility Committee, the Downtown Dover Development Corporation, the Downtown Dover Partnership, the Community Development Block Grant Review Committee, the Greater Dover Arts Council, the Dover Substance Abuse Advisory Board, and the Sunset Ad-Hoc Committee; and as a Liaison to Kent County, the Central Delaware Chamber of Commerce, and the Greater Dover Committee. WHEREAS, throughout his tenure, Reuben Salters demonstrated his love for the City of Dover through countless hours of service; was an outspoken advocate of programs for youth in the community, particularly those promoting music and the arts; and served as an invaluable resource to members of City Council by providing a historical perspective to matters brought forth for consideration; and WHEREAS, Reuben Salters displayed a sense of dignity and a spirit of civility while conducting the affairs of the City that commanded the respect of all those who worked with him. NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council recognize that Reuben Salters will be sorely missed and express their sincere appreciation to him and his family for the dedicated years of service and personal sacrifices made on behalf of the City of Dover.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 7 BE IT FURTHER RESOLVED that the Mayor and Council wish Councilman Salters 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 Reuben Salters. ADOPTED: MAY 9, 2011 Mrs. Russell moved for adoption of Resolution No. 2011-08, seconded by Mr. Leary and unanimously carried. Mayor Carey and members of Council presented Councilman Salters with the Resolution, a gavel, a Dover Cup, a Friends of the Dover Public Library Cookbook, a commemorative piece depicting the new Dover Public Library (provided to Mr. Hogan and Mr. Ruane during the groundbreaking ceremony for the library) and a key to the City. Mr. Salters gave honor to God for permitting him 22 years to serve on City Council. He thanked his wife, Jo Anna, and his children and grandchildren for releasing him to duty to serve the City, following 20 years of service in the military and 20 years at Delaware Technical and Community College. Mr. Salters expressed appreciation for former members of Council who have passed on, including Mr. Fred VanSant and Mr. Francis Weyandt, noting that these members took him under their wings during his early tenure and provided sage advice. He stated that, over the years, he tried to conduct himself so as to be a credit to the City and the citizens of Dover. Mr. Salters thanked Mr. Cecil Wilson (NAACP), who he stated was instrumental in the action that made Mr. Salters’ election in the Fourth District possible. He thanked Mr. DePrima, who Mr. Salters stated may be the best City Manager the City has had. He also thanked Mrs. Mitchell; Mr. Mike Karia, previous Finance Director; the City Clerk’s Office; all other City department heads and staff; Council members; and the Mayor’s Office. Most of all, he thanked the citizens of the City for permitting him the opportunity to serve. Mr. Salters stated he has enjoyed serving as a member of Council and offered his availability to assist the City and its constituents in the future. OATHS OF OFFICE - CITY COUNCIL The Honorable Henry duPont Ridgely, Justice of the Delaware Supreme Court, administered the Oath of Office to members of City Council, as follows: Council - At-Large - Thomas J. Leary Council - First District - James L. Hutchison, Sr. Council - Third District - Sean M. Lynn Council - Fourth District - David L. Anderson The Honorable William L. Whitham, Jr., Resident Judge of Superior Court, administered the following Oath of Office: Council - Second District - William F. Hare

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 8 ELECTION OF COUNCIL PRESIDENT/VICE-MAYOR Mayor Carey requested that members consider the preferred method for making nominations and voting for the Council President/Vice-Mayor. Mrs. Russell moved for nominations and voting for the Council President/Vice-Mayor to be conducted by Australian (secret) ballot, seconded by Mr. Leary and carried with Dr. McGlumphy voting no. Mayor Carey noted that each member of Council was provided a paper nominating ballot. He requested that members write the name of their nominee for Council President/Vice-Mayor on the ballot to be placed in an envelope to be submitted to the City Solicitor for determination of the nominations. Mayor Carey announced that the following members were nominated to serve as Council President/Vice-Mayor: 1) Thomas J. Leary; and 2) Beverly C. Williams. Mr. Bonar moved to accept the nominations for Council President/Vice-Mayor as submitted, seconded by Mr. Leary and unanimously carried. Mr. Leary moved to close nominations for Council President/Vice-Mayor, seconded by Mr. Bonar and unanimously carried. Mayor Carey noted that each member of Council was provided a paper election ballot. He requested that members cast their votes for Council President/Vice-Mayor and place their ballots in the envelope to be submitted to the City Solicitor for the tallying of results. Mayor Carey announced that Mr. Thomas J. Leary had been elected to serve as Council President/Vice-Mayor for the next year. Mayor Carey reminded members that the envelopes containing the nominating and election ballots were sealed by the City Solicitor and will be retained until after the next Annual Council Meeting, after which time the unopened envelopes will be destroyed. RECESS Mr. Bonar moved to recess to take photographs of the Mayor and members of City Council, seconded by Mr. Hutchison and unanimously carried. Meeting recessed at 8:35 p.m. The meeting reconvened at 8:49 p.m., with Mayor Carey presiding. Council members present were Mr. Anderson, Mr. Bonar, Mr. Hare, Mr. Hutchison, Council President Leary, Mr. Lynn, Dr. McGlumphy, Mrs. Russell, and Mrs. Williams.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 9 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. Bonar moved for approval of the consent agenda, seconded by Mr. Hutchison and carried by a unanimous roll call vote. UTILITY COMMITTEE REPORT - APRIL 25, 2011 The Utility Committee met on April 25, 2011 with Chairman Ruane presiding. East Dover Hills Water Line Replacement Project Mr. Ronald Lunt, Director of Public Utilities, introduced Mr. Jason Lyon, Civil Engineer, who is serving as the Project Engineer. Mr. Lyon stated that the Bayard Avenue area is known as East Dover Hills and that the Water Line Replacement Project began on April 4, 2011 with preparation of the area. Installation of the water line began on April 25, 2011 at the intersection of Division Street and Bayard Avenue. Mr. Lyon stated that this phase of the project includes Bayard Avenue in its entirety, from Division Street south to the Bayard Tower Tank. Once completed, staff will test the line to assure there are no chemical concerns and the project will then continue with Greenhill Road, from Park Drive to Route 13. After this section is complete, the next phase will include the alley between Bayard Avenue and Park Drive. Once all water lines are complete and positive test results achieved, each individual lot will be provided new water service. Mr. Lyon advised members that he is in the process of going “door-to-door” to explain the project to each resident, determine if they have any questions or concerns, and provide his contact information. The anticipated project completion date is September 2011. Responding to Mr. Ruane regarding the purpose of the replacement, Mr. Lyon reminded members that this project was identified in 2006 by the water model study as one of the main projects needing completion. He advised members that this area serves as a thoroughfare from Division Street to the Bayard Tower tank and that 16-inch pipe is used to provide the maximum pressure possible in the transmission of water. In addition, Mr. Lyon stated that there have been numerous complaints of brown water, explaining that there are undersized (two (2) inch) mains in the area; therefore, all mains are being upgraded to eight (8) inches. The cost of this project is approximately $450,000. In response to Mr. Bonar, Mr. Lyon stated that, in addition to contacting the residents personally, correspondence has been sent to residents who are not home during the day. Division Street Inflow & Infiltration Project Mr. Jason Lyon, Civil Engineer, advised members that the Division Street Inflow and Infiltration (I & I) Project is part of a larger I & I project that encompasses the northwest interceptor, which includes William Street and Washington Street behind the Capital School District property. The project was put out for bid and was anticipated to begin during the week of April 25, 2011; however, since this is a heavily traveled area, staff determined that it would be better to delay the project until July 9, 2011, after upcoming festivities (Old Dover Days, Race Weekend, the African American Festival, the Fourth of July, etc.) have concluded.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 10 Mr. Lyon stated that the contractor will work 24 hours per day until the project is complete and that the project will require closure of Division Street, from King’s Highway to West Street, for approximately 5-7 days. He assured members that all required permits will be obtained and there will be customer “outreach” to businesses and residents. Mr. Lyon advised members that the overall project cost will be approximately $1.8M. Responding to Mr. Bonar, Mr. Lyon stated that there have been no difficulties in obtaining necessary approvals from the Delaware Department of Transportation (DelDOT), including the road closure. Review of Utility Related Capital Investment Plan (CIP) (Electric and Water/Wastewater) (January and February) Members were provided Project Tracking Reports, as of January 31, 2011 and February 28, 2011, for the Utility (Electric and Water/Wastewater) Related Capital Investment Plan (CIP). Noting that there will be new Committee members, Mr. Ruane suggested that staff provide members a summary of each project to allow them full understanding. Referring to the Route 13 Water Main Project, Mr. Ronald Lunt, Public Utilities Director, stated that there have been many challenges related to the Delaware Department of Transportation’s (DelDOT) involvement with this project. He indicating that DelDOT has delayed approval of the project for over one (1) year and has required a traffic maintenance plan, which added substantial cost to the project. It was Mr. Lunt’s feeling that, although this project exemplifies some of the problems with the relationship between the City and DelDOT, the Division Street Project reflects some of the successes. He explained that the City has routine meetings with DelDOT to discuss upcoming projects, which help the City to better understand the needs of DelDOT and vice versa. PACE/NAES REPORT The PACE/NAES Monthly Report for February 2011 was provided to members to enable them to monitor electric sales and revenues received, which will provide a better understanding of any fluctuations that occur and allow the opportunity to make improvements if deemed necessary. Mr. Ronald Lunt, Director of Public Utilities, noted that sales were greater than projections by approximately 4,000 hours due to cold weather. He noted that Units 3 and 11 successfully achieved capacity rating, which is approximately102 megawatts for Unit 3 and 43 megawatts for Unit 11. In response to Mr. Bonar, Mr. Lunt indicated that there were no environmental impact concerns at this time; however, this could change depending on potential actions of the Environmental Protection Agency (EPA). Responding to Mr. Ruane, Mr. Lunt stated that the agreement for the contract with the The Energy Authority (TEA) will soon be complete and services will begin July 1, 2011. He stated that PACE has been very cooperative with this transition and has provided assistance. The Committee recommended acceptance of the PACE/NAES Monthly Report for February 2011.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 11 By consent agenda, Mr. Bonar moved for approval of the Committee’s recommendation, seconded by Mr. Hutchison and carried by a unanimous roll call vote. Update - Green Energy Funding and Programming Mr. Ronald Lunt, Director of Public Utilities, stated that there have been no changes in Green Energy Funding and Programming since the previous report. He advised members that he approved an additional application submitted by a psychiatric center. He noted that the application was for delayed grant program funds, which are estimated to be received in approximately two (2) years. State Sustainable Energy Utility (SEU) Programs and Legislation Mr. Ronald Lunt, Director of Public Utilities, advised members that the City has sent a letter of support for a proposed legislative change that was spearheaded by the Delaware Electric Co-op, requesting that demand response programs would also apply toward the Renewable Energy Portfolio Standards (RPS). He stated that a hearing was recently held and that the Department of Natural Resources and Environmental Control (DNREC) views this as “double dipping” since there is legislation that requires the City to lower usage. Mr. Lunt indicated that there is a usage reduction bill that impacts the City and DNREC feels that allowing demand response would be “double dipping” resources; therefore, DNREC is not supporting the bill. Mr. Lunt stated that he was not aware of any other energy-related legislation pending. Noting that several members will no longer be serving on the Committee, Mr. Ruane relayed appreciation on their behalf for all the work provided by staff, including Mr. Anthony DePrima, City Manager; Mr. Ronald Lunt, Director of Public Utilities; Mrs. Sharon Duca, Water/Wastewater Manager; Mr. Scott Koenig, Public Services Manager/Director of Public Works; and Mrs. Ann Marie Townshend, Director of Planning and Community Development. Since this was his last time serving as Chair, Mr. Ruane also commended and thanked the Committee members and all those in the utility field for their assistance provided to him over the past 10 years. Mr. McGiffin echoed the comments of Mr. Ruane and also thanked Mr. Ruane for his leadership serving as the Committee’s Chair. Mr. Bonar thanked Mr. Ruane and Mr. McGiffin for their service and noted that their actions played a significant role in utility improvements made by the City. He also thanked the Council President for appointing these members to the Committee. Mr. Ruane also relayed appreciation to the City Clerk’s Office for their support and the Controller/Treasurer for the guidance she provided. Mr. Snaman wished those who will no longer serve on the Committee well in their future endeavors and relayed his enjoyment serving the Committee. By consent agenda, Mr. Bonar moved for acceptance of the Utility Committee Report, seconded by Mr. Hutchison and carried by a unanimous roll call vote.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 12 LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - APRIL 25, 2011 The Legislative, Finance, and Administration Committee met on April 25, 2011 with Chairman Leary presiding. Review and Recommendation - Filling of Critical Positions During their meeting of February 23, 2009, members recommended approval of a 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 were no positions to consider, the item could be removed. Mr. Leary noted that there were no critical positions to be considered; therefore, no further action was required. Preliminary Financial Forecast Updates Mrs. Donna Mitchell, Controller/Treasurer, reviewed presentations of the City of Dover Electric Revenue Fund Preliminary Five-Year Financial Forecast - 2012-2016, City of Dover Preliminary Water and Wastewater Fund Five-Year Financial Forecast - 2012-2016, and City of Dover Preliminary General Fund Forecast. She reminded members that each year, staff has provided financial forecasts for the Electric and Water/Wastewater Funds, and this year staff included the General Fund. Mrs. Mitchell noted that during their Regular Council Meeting later this evening, members will be reviewing the Quarterly Revenue Report Projected Revenues for FY 2012, which have been incorporated into the Preliminary Financial Forecasts. She stressed that these Forecasts are being presented “pre-budget” to provide members with an understanding of the City’s current financial status. Referring to Page 4 of the Electric Revenue Fund Forecast, Mrs. Mitchell stated that the City has hedged 85% of its power supply for Fiscal Year 2012 using forward contracts and that this is a decrease of 5.3% from Fiscal Year 2011. Noting that there is a Power Cost Adjustment (PCA) credit of $6M, which represents 5.9%, she explained that the rate payers will receive the full benefit of the decrease. Mrs. Mitchell advised members that on Page 6 of the Electric Revenue Fund Forecast, the Debt Service Coverage Ratio is higher than normal since PCA credits have not been determined for the out years. Responding to Council President Hogan, Mrs. Mitchell confirmed that, rather than providing a PCA credit, City Council may opt to revise the rates. She reminded members that it was previously decided that the City would conduct a full rate analysis every five (5) years to assist in making such decisions. Mrs. Mitchell advised members that there has been a change in the methodology used in previous years to determine the Water and Wastewater Fund Forecast. She explained that staff suggested that some of the financial needs be accomplished through the Revolving Fund Loan Program.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 13 Mrs. Mitchell concurred, since the interest rates were 2% and 2.6%, which were less than the City could obtain on the Bond Market at the time. As a result, she stated that the debt service requirements are in the Capital Investment Plan (CIP); however, the payments and interest have not been included in the out years as she is unsure of the issuance of the actual debt. Mrs. Mitchell indicated that, once the details are known, these amounts will be incorporated. Mrs. Mitchell stated that the debt service on Page 7 of the Water and Wastewater Fund Forecast is reflective of the City’s current debt and does not include any interest or payments on future debt service. Referring to the General Fund Forecast, Mrs. Mitchell noted that there is no financial schedule since staff is continuing to work on some figures. In order to provide preliminary numbers, she highlighted significant issues for members to consider during the upcoming budget process. Mrs. Mitchell noted that members were provided a presentation of the City of Dover Capital Project Financing Governmental Funds, which was presented at the Council Retreat held on January 28, 2011, and suggested that members review this presentation. Responding to Mr. Leary, Mrs. Mitchell confirmed that current rate payers are funding entire projects listed in the General Fund; however, a combination of sources is used to fund the Utilities (Electric, Water, and Wastewater). She explained that utility projects have been funded by bond issues, revolving fund loans, and supplemental City financing, and that some of CIP is bonded by debt. Mrs. Mitchell advised members that Municipal Street Aid is paying for operation and current debt service, but not for projects. She stated that one (1) source of funding that may “dry up” is the Community Transportation Fund (funds granted by State legislators), which has subsidized City street improvements. The Committee recommended acceptance of the Preliminary Financial Forecast Updates Report, as presented. By consent agenda, Mr. Bonar moved for approval of the Committee’s recommendation, seconded by Mr. Hutchison and carried by a unanimous roll call vote. Mr. McGiffin thanked Mrs. Mitchell for presenting information in a very understandable manner. Mr. Salters also relayed appreciation for the work provided by Mrs. Mitchell and her staff during his tenure on City Council and as a member of the Legislative, Finance, and Administration Committee. He suggested that those recently elected to City Council contact Mrs. Mitchell for guidance. Mr. Leary relayed appreciation to Mrs. Mitchell for her patience and time in working with him as Committee Chair on various issues. He also expressed appreciation to Mr. DePrima as well as Mrs. McDowell and the Clerk’s Office for their assistance. Noting that some Committee members would be leaving their seats on City Council, Mr. Leary thanked Mr. McGiffin and Mr. Salters for the contributions that they have made.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 14 In addition, Mr. Leary thanked Dr. Jones and Mr. Shevock for their service to the Committee during the past year. Mrs. Mitchell relayed appreciation to the Committee for the assistance provided during the years. By consent agenda, Mr. Bonar moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mr. Hutchison and carried by a unanimous roll call vote. SAFETY ADVISORY AND TRANSPORTATION COMMITTEE REPORT - APRIL 27, 2011 The Safety Advisory and Transportation Committee met on April 27, 2010 with Chairwoman Williams presiding. Discussion - Draft Letter to Capital School District - Pedestrian Crosswalk During their meeting of February 23, 2011, members reviewed detailed information provided by Mr. Davis regarding a 40-foot pedestrian bridge for possible construction at the new Dover High School site. It was the consensus of members that staff should invite the Capital School District to attend the next Committee meeting to discuss these issues further. Mr. Davis explained that signalization is proposed at both the eastern and western ends of the new Dover High School and that three (3) housing developments are located across from the campus on the north side of Route 8. He suggested that, rather than installing an additional traffic light in the middle of the school property to allow students to cross the road safely, consideration be given to construction of an overhead walkway. Mr. Davis provided members a revised draft letter to the Capital School District (attachment to committee minutes) suggesting consideration of a pedestrian bridge. He noted that information regarding pricing and suggestions for funding for such a bridge were included in the letter. Responding to Mr. Davis, Mrs. Ann Marie Townshend, Director of Planning and Community Development, stated that the three (3) communities that would be served by a pedestrian bridge are Cranberry Run, Heatherfield, and Heatherfield East. The Committee recommended that Mr. Scott Koenig, Public Services Manager/Director of Public Works; Mrs. Ann Marie Townshend, Director of Planning and Community Development; and Police Chief James Hosfelt provide their recommendations at the next Committee meeting regarding submission of a letter to the Capital School District suggesting construction of a pedestrian bridge at the new Dover High School, and that the input of Mr. James Galvin, Principal Planner, Dover/Kent County Metropolitan Planning Organization, also be solicited, so that the Committee can determine if they wish to move forward with sending the letter. By consent agenda, Mr. Bonar moved for approval of the Committee’s recommendation, seconded by Mr. Hutchison and carried by a unanimous roll call vote.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 15 Discussion - Alcohol Control Measures During their meeting of January 27, 2010 members were advised that, over the previous 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. 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.) This matter was again considered by members during their meeting of April 28, 2010, at which time the Committee recommended that staff schedule a public meeting as soon as possible to address this issue with all interested parties to seek resolution. (The Committee’s recommendation was approved by Council during their Annual Meeting of May 10, 2010.) During the Committee meeting held on October 27, 2010, Mrs. Ann Marie Townshend informed members that a public meeting was held on September 8, 2010 to discuss this matter, and notice was sent to all holders of State liquor licenses relating to restaurants, taprooms, and taverns in the City. Based on this meeting, staff developed an outline of actions that the City could take to address the problems identified with bars. Mrs. Townshend reviewed with members the outline of proposed measures, which was provided for their consideration. The Committee recommended that staff schedule a public hearing around February 1, 2011 and that the matter be scheduled for reconsideration by the Safety Advisory and Transportation Committee in March 2011. (The Committee’s recommendation was approved by Council during their meeting of November 8, 2010.) Mrs. Townshend stated that during the public meeting held on September 8, 2010 several ideas were proposed to business owners to better regulate establishments that serve alcohol. Some of these proposals included adding a new category to business licenses for establishments that serve alcohol, or incorporating some of the Alcoholic Beverage Control Commission (ABCC) regulations within City Code. However, Mrs. Townshend indicated that some bar owners objected to these proposals, stating that measures should not be alcohol-specific because the problems being experienced were not limited to establishments serving alcohol. Mrs. Townshend explained that staff met with the Division of Alcohol and Tobacco Enforcement, who suggested considering an approach such as that adopted by the City of Wilmington, where a public nuisance ordinance was incorporated as part of the business licensing program. Under this program, a point system is utilized, with points being accumulated for infractions. Penalties, including temporary closure, revocation or suspension of business licenses, or fines, are imposed if a set number of points is accumulated within an established timeframe (e.g., 12 points within six months or 18 points within 12 months). Mrs. Townshend explained that this idea was shared with business owners on April 18, 2011, and it was not well received. She stated that business owners felt that they would be reluctant to contact the police if a problem occurs because of the risk that points would be accumulated, even though staff explained that legislation would specifically exempt those who report incidents not caused by the owner’s action or inaction. She indicated that business owners were more uncomfortable with this proposal than the solutions suggested by staff previously.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 16 Mrs. Townshend stated that business owners were receptive to the idea of producing a user-friendly handbook outlining good, responsible business practices for managing bars and restaurants, such as hiring extra-duty police for special events or when large crowds are expected, controlling entries and exits, etc. She noted that several members of the business community volunteered to work with the City in developing and distributing such a handbook to restaurant and bar owners in the City. Mrs. Townshend stated that another possibility would be to increase criminal fines, noting that the current fine for disorderly conduct is $25. Responding to Mr. Bonar, Mrs. Townshend confirmed that State legislature approval would be necessary to increase fines. The Committee recommended that staff conduct further research on this matter and report back to the Committee within 60 days. By consent agenda, Mr. Bonar moved for approval of the Committee’s recommendation, seconded by Mr. Hutchison and carried by a unanimous roll call vote. Briefing on Delaware Department of Transportation (DelDOT) Projects - Gary Laing West Dover Connector Mr. Gary Laing, Community Relations Officer, Delaware Department of Transportation (DelDOT) reported that there is no change in the status of this project. Water Street Railroad Crossover Mr. Laing reported that there is no change in the status of this project. Wyoming Mill Road Project Mr. Laing reported that the Wyoming Mill Road realignment is progressing as planned. He noted that lane shifts are in place on eastbound Hazlettville Road. Transit Center Mr. Laing reported that construction of the Transit Center is now entering Phase II. He noted that this is a new type of project for DelDOT, in that it is being undertaken as a “design/build/operate project.” He noted that DelDOT feels that this is an effective strategy, as it accomplishes DelDOT goals at a reduced cost at a time when the State is challenged by funding concerns. Mr. Laing explained that the Center will be built to DelDOT specifications by a firm who will operate the Transit Center and will lease the space from the State. He stated that DelDOT is identifying quality firms, determining specifications, and accepting and reviewing plans at this time. Mr. James Galvin, Principal Planner, Dover/Kent County Metropolitan Planning Organization (MPO) noted that this project has been delayed due to the vacant Secretary of Transportation position.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 17 Briefing on Dover/Kent County Metropolitan Planning Organization (MPO) Projects Mr. James Galvin, Principal Planner, Dover/Kent County Metropolitan Planning Organization (MPO) stated that a Public Workshop regarding the Clarence Street Extension Project was held on April 12, 2011 and was well attended. Mr. Galvin explained that the MPO has not received information from DelDOT regarding the 2012-2017 Transportation Improvement Program (TIP); however, staff developed a draft TIP submission using figures from the previous year. He noted that the MPO’s plan will have to be amended after July 1, 2011, once the State Bond Bill is passed. Mr. Galvin noted that Ms. Juanita Wieczoreck, Executive Director, Dover/Kent County MPO, has developed the MPO’s annual Unified Planning Work Plan (UPWP) and has submitted it to MPO’s Technical Advisory Committee (TAC) and Public Advisory Committee (PAC). He indicated that the Plan includes an additional position for a planner or planning technician. He stated that Ms. Wieczoreck will be leaving her position at the end of June. Mr. Galvin stated that the Delaware State Rail Plan has been distributed for public comment and the MPO submitted comments on April 27, 2011 regarding the Dover Transit Center Neighborhood Plan. Mr. Galvin advised members that the MPO’s Regional Bike Plan is in the final draft stage and nearly ready for distribution. He noted that proposed projects focus on bike transportation on the road, adjacent to the road, off-road, and at the intersection of roads. He anticipated that the Plan would be ready for comment next month. At the request of Mr. Bonar, Mr. Galvin said that he would share the Regional Bike Plan with members in advance of the next Safety Advisory and Transportation Committee meeting. Noting that the TIP was planned for consideration by the MPO Council during the week of May 2, 2011, Mrs. Townshend reiterated the importance of constructing a connector road between Route 8 (near the new Dover High School) and Hazlettville Road. She advised members that she voted against recommending approval of the TIP because this project was not included. Mrs. Townshend stated that this was one of the City’s top priorities and anticipated that traffic problems will develop in that area if the connector is not in place. She noted that there is a very low probability that DelDOT will perform any design or acquisition for projects not included in the TIP or the Capital Transportation Program (CTP). Mr. Bonar suggested adopting a collaborative approach in seeking funding solutions by having all interested groups, including the Kent County Government, work together. He noted that during the City Council meeting of April 11, 2011, Council approved the establishment of an Ad-Hoc Legislative Liaison Committee to meet with and encourage State Legislators, the Bond Bill Committee, and the Governor to allocate funds for economic development within the City of Dover. He suggested that advocating for the construction of the connector road might fall under the realm of this Legislative Liaison Committee, and Mayor Carey concurred.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 18 By consent agenda, Mr. Bonar moved for acceptance of the Safety Advisory and Transportation Committee Report, seconded by Mr. Hutchison and carried by a unanimous roll call vote. MONTHLY REPORTS - MARCH 2011 By motion of Mr. Bonar, seconded by Mr. Hutchison, the following monthly reports were accepted by consent agenda: Budget Report Chief of Police Report City Assessor’s Report City Manager's Report City Planner’s Report Dover Fire Department Report COUNCIL APPOINTMENTS - 2011/2012 Staff By consent agenda, Mr. Hogan moved for approval of the Council staff appointments for 2011/2012, seconded by Mr. Hutchison 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 - Denise L. Devine Controller/Treasurer - Donna S. Mitchell Assistant Treasurers - Traci A. McDowell and Denise L. Devine Fire Marshal - David J. Truax City Planner - Ann Marie Townshend City Solicitor - Nicholas H. Rodriguez Deputy City Solicitor - William W. Pepper, Sr. COUNCIL PRESIDENT APPOINTMENTS - 2011/2012 COMMITTEES Council President Leary requested that the Council President standing committee appointments be deferred until the Regular Council Meeting of May 23, 2011. He requested that Council members contact him regarding their preferences for appointments. Mr. Hutchison moved to defer the Council President Committee appointments for 2011/2012 until May 23, 2011, seconded by Mr. Hare and unanimously carried. COUNCIL PRESIDENT APPOINTMENTS - 2011/2012 MISCELLANEOUS Council President Leary requested that his miscellaneous appointments be deferred until the Regular Council Meeting of May 23, 2011. Mr. Hutchison moved to defer the Council President Miscellaneous Appointments for 2011/2012 until May 23, 2011, seconded by Mr. Bonar and unanimously carried.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 19 MAYORAL APPOINTMENTS - COMMITTEES By consent agenda, Mr. Bonar moved for approval of the Committee appointments for 2010/2011, as recommended by Mayor Carey. The motion was seconded by Mr. Hutchison 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 William Garfinkel - At-Large Brad Holden, Vice-President Donna Mitchell, Treasurer/Secretary (staff liaison) Property Maintenance Code Board of Appeals Carleton E. Carey, Sr., Chairman (ex-officio member) (Request appointment to fill vacancy [Rexene Elaine Brenchley Ornauer, Representative of Homeowners] be Zach Carter (staff liaison) deferred) Andrea Maucher Charles Martin, Representative of Local Real Estate Karen Nickerson (Request appointment to fill vacancy [Scott Cole] be Silver Lake Commission deferred) Cheryl A. Biddle James Burcham Dover Public Library Advisory Commission Zachery Carter (Request appointment to fill vacancy [Councilman David L. Edgell Eugene B. Ruane] be deferred) Robert Gorkin Dean Holden Downtown Dover Partnership Steering Committee Nancy H. Wagner Paul Lakeman, Chief Executive Officer of Bayhealth Dr. William Johnston, W esley College President Stanford A. Smith, Sr., Undesignated Representative Gerald I. H. Street, Undesignated Representative Mayor Carleton E. Carey, Sr. (Ex-Officio Member) Anthony DePrima, City Manager Ann Marie Townshend, Director of Planning and Community Development Laura Simmons, State of Delaware Representative Councilwoman Sophia R. Russell Councilman David L. Bonar (Request appointment to fill vacancy [Councilman Reuben Salters] be deferred) (Request appointment to fill vacancy [Ami Sebastian-Hauer, Undesignated Representative] be deferred) MAYOR AND COUNCIL APPOINTMENTS - COMPENSATION COMMISSION By consent agenda, Mr. Bonar moved for approval of the appointments to the Compensation Commission for 2010/2011, as recommended. The motion was seconded by Mr. Hutchison and by a unanimous roll call vote, the following appointments were made: Richard Cook (Recommended by Councilmen Hare and Hutchison) Adam Perza (Recommended by Councilman Lynn) Louise Webb (Recommended by Councilman Leary) Harry Williams (Recommended by Mayor Carey)

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 20 Council President Leary requested that the appointment to be recommended by the Council President be deferred until the Regular Council Meeting of May 23, 2011. Mr. Hutchison moved to defer the Council President’s appointment to the Compensation Commission until May 23, 2011, seconded by Dr. McGlumphy and unanimously carried. PROPOSED RESOLUTION - NO. 2011-04 - APPROVAL OF 2011 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ACTION PLAN Members considered Proposed Resolution No. 2011-04 for the approval of the 2011 Community Development Block Grant (CDBG) Action Plan. Mrs. Ann Marie Townshend, Director of Planning and Community Development, provided members a summary of the CDBG 2011 Program Allocation (Exhibit #2) and explained that, during their meeting of March 24, 2011, the Parks, Recreation, and Community Enhancement Committee reviewed the CDBG applications and developed a funding allocation plan. This recommendation was based on the information available at that time regarding the City’s projected 2011 grant allocation from the Department of Housing and Urban Development (HUD), since the Federal budget was not yet adopted. Mrs. Townshend stated that, in the interim, the Federal Government adopted its budget and the City recently received notification of its allocation from HUD. She noted that the CDBG Action Plan was developed using a Federal allocation estimate of $285,507; however, the actual allocation received from HUD is $247,688. Since $15,507 in program income is expected, Mrs. Townshend explained that the total amount available for allocation is $263,195. She advised members that the summary provided includes revised amounts based on this amount. Responding to Mr. Hare, Mrs. Townshend stated that program administration costs include the salary for the program administrator, office supplies, a computer, etc., and that the allocation does not fully cover these costs since it is capped at 20% of the City’s CDBG allocation. She explained that the program is managed by the Community Development Manager, who is a full-time employee. In addition to administering the CDBG Funds and interfacing with HUD, this employee is responsible for managing the City’s Homeownership Assistance and Housing Rehabilitation Programs. In response to Mrs. Williams, Mrs. Townshend stated that CDBG funds have been used for street infrastructure in the past, explaining that such funds can only be used for qualifying areas (located within a census block that is classified as low-to-moderate income based on a survey). She indicated that if CDBG funds were not available for street infrastructure, these specific streets would probably not be rehabilitated. Mrs. Townshend noted that funding recommendations for street infrastructure are presented to Council during the budget process. In response to Mrs. Williams regarding street funds received from State legislators, Mr. DePrima stated that these funds are designated by legislators for specific streets. He explained that the CDBG funds would add to the City’s paving budget and allow improvements to streets that may not be of interest to legislators. Without these funds, Mr. DePrima noted that there would be $60,081 less available for infrastructure improvements in the City’s street fund budget.

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 21 Mrs. Williams questioned if approving the allocation of CDBG funds for street infrastructure would preclude utilizing funds from the City’s budget for this purpose, noting that budget hearings are not scheduled until the middle of May. Responding, Mr. DePrima stated that any reversal of the allocation would require HUD’s approval. Mrs. Williams suggested that this matter be deferred until after the budget hearings. Responding, Mrs. Townshend advised members that the City is required to submit the City’s CDBG Action Plan to HUD by the middle of May. She stated that in order for Council to consider the allocation during the budget review process and still meet the guidelines of HUD, Council has two (2) options: 1) choose not to allocate CDBG funds to the street program and amend the CDBG Action Plan to reflect a redistribution of funds among subgrant applicants, or 2) allocate the funds as suggested by staff and, if it is determined during the budget hearings that the CDBG funds are not needed for the street program, submit an amendment to the Action Plan to re-program the funds to an eligible expense. Dr. McGlumphy requested that, in future years, staff allocate such funds to programs that directly benefit those that the program is intended for and that street improvements be the responsibility of the City directly. Responding, Mrs. Townshend advised members that staff does not set and rank the CDBG funding levels, explaining that this is accomplished by the Parks, Recreation, and Community Enhancement Committee. Mrs. Russell moved for adoption of the Proposed Resolution, seconded by Mr. Bonar, and by a unanimous roll call vote, Council adopted Resolution No. 2011-04, as follows: A RESOLUTION APPROVING THE 2011 COMMUNITY DEVELOPMENT BLOCK GRANT ACTION PLAN. WHEREAS, the City of Dover is entitled to $247,688 through the United States Department of Housing and Urban Development Community Development Block Grant program; and WHEREAS, the City of Dover has prepared the 2011 Action Plan, in accordance with the United States Department of Housing and Urban Development guidelines, that serve as the primary planning document for identifying and meeting the housing and community development needs for the low and moderate-income residents of Dover; and WHEREAS, the City of Dover is in favor of utilizing the Community Development Block Grant funds for the community development purposes in accordance with the National Community Development objectives of benefitting low and moderate income families, eliminating slums and blight, and meeting other community development objectives; and WHEREAS, the United States Department of Housing and Urban Development requires the City of Dover to submit a Consolidated Plan and an Action Plan for Application for Federal Assistance including the proposed use of funds and including certain certifications and policies to obtain its $247,688 entitlement; and use of $15,507 in program income for eligible activities; and

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 22 NOW, THEREFORE BE IT RESOLVED THAT THE MAYOR AND COUNCIL OF THE CITY OF DOVER APPROVE THE 2011 Community Development Block Grant Action Plan and application for Federal Assistance included in the Action Plan, along with certifications and policies attached and authorize its forwarding to the United States Department of Housing and Urban Development for consideration. ADOPTED: MAY 9, 2011 For clarification, Mrs. Russell stated that the approval incorporates the revised allocations, as provided in Exhibit #2. PROPOSED RESOLUTION - NO. 2011-09 - AUTHORIZING CONTROLLER/TREASURER AND ASSISTANT TREASURERS TO DISBURSE FUNDS Members were provided proposed Resolution No. 2011-09, which authorizes the Controller/Treasurer and Assistant Treasurers to disburse funds. By consent agenda, Mr. Bonar moved for adoption of the Proposed Resolution, seconded by Mr. Hutchison, and by a unanimous roll call vote, Council adopted Resolution No. 2011-09, as follows: WHEREAS, the City of Dover's investment policy includes the investment of funds up to $100,000 per banking institution, investments in the State of Delaware Investment Pool and the purchase and sale of U.S. Treasury and agency securities; and WHEREAS, the banking institutions, brokerage firms, trust companies and other various financial institutions require an Authorizing Resolution for the opening of accounts, and for purchasing, selling, transferring, assigning and handling securities; NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the City of Dover, that the Controller/Treasurer and Assistant Treasurers are hereby authorized to open accounts with banking institutions and purchase, sell, transfer assignment and handle securities and that they are authorized to sign all related forms; BE IT FURTHER RESOLVED that the transactions in these accounts be carried out with any one signature; and That the following are the office holders authorized for these purposes, until further notice: Donna S. Mitchell - Controller/Treasurer Denise L. Devine - Assistant Treasurer Traci A. McDowell - Assistant Treasurer ADOPTED: MAY 9, 2011

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 23 EVALUATION OF BIDS - SANITARY SEWER MAIN RELINING (INFLOW & INFILTRATION REMOVAL) CORRECTION During their Regular Meeting of August 9, 2010, City Council approved staff's recommendation for approval of the low bid submitted by Lanzo Lining Services, Inc. in the amount of $1,307,300 for the relining of the Division Street Interceptor and portions of the Northwest Interceptor and that a not-to-exceed amount of $492,700 be allocated for additional relining projects. Mrs. Donna Mitchell, Controller/Treasurer, advised members that there was an error in the bid tabulation for this project when presented to Council. She explained that the project is being funded through the State Revolving Fund, which is funded by federal funds. As such, she stated that there is a requirement for the official records to be accurate; therefore, the matter was being presented at this time to correct the bid tabulation error. Mrs. Mitchell stated that the bid amount would be increased from $1,307,300 to $1,327,300. In addition, she noted that the relining projects were identified and a change order was issued in the amount of $462,000, which is within the range previously approved by Council. Staff recommended approval of the low bid submitted by Lanzo Lining Services, Inc. in the amount of $1,327,300 for the relining of the Division Street Interceptor and portions of the Northwest Interceptor and allocation of an amount not to exceed $472,700 for additional relining projects. Mr. Bonar moved for approval of the low bid submitted by Lanzo Lining Services, Inc., in the amount of $1,327,300 for the relining of the Division Street Interceptor and portions of the Northwest Interceptor and allocation of an amount not to exceed $472,700 for additional relining projects to correct a bid tabulation error. The motion was seconded by Mr. Hutchison and carried by a unanimous roll call vote. Responding to Mrs. Russell, Mr. DePrima stated that the street work being performed in her neighborhood is a part of the street relining project. COUNCIL MEMBER ANNOUNCEMENTS Mayor Carey thanked all who assisted in the transition in Council membership and relayed a special thanks to the City Clerk’s Office for their assistance. He expressed appreciation for the service provided by those members of Council who left office this evening. Mr. Hutchison moved for adjournment, seconded by Mr. Bonar and unanimously carried. Meeting Adjourned at 9:33 P.M. TRACI A. McDOWELL CITY CLERK

ANNUAL CITY COUNCIL MEETING OF MAY 9, 2011 PAGE 24 All orders, ordinances, and resolutions adopted by City Council during their Annual Meeting of May 9, 2011, are hereby approved. CARLETON E. CAREY, SR. MAYOR /TM/jg S:\AGENDAS & MINUTES\Council-Minutes\2011\05-09-2011 Annual Council.wpd Exhibits Exhibit #1 - State of the City Message Exhibit #2 - Summary of the Community Development Block Grant (CDBG) 2011 Program Allocation

EXHIBIT #1 Annual Council Meeting of 05/09/2011 STATE OF THE CITY Carleton E Carey, Sr. Mayor EXHIBIT #1 Annual Council Meeting of 05/09/2011

City of Dover Vision 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.

City of Dover Police Department

Police Department Total Complaints 5 year Comparison Violent Crime 5 year comparison

Police Department Actual Drug Arrests Drugs, Vice, & Organized Crime Section

Dover’s Criminal Investigations Unit Dover Criminal Investigations Unit is tasked with: Investigation of most serious crimes Financial and Identity Theft Background Investigations on all civilian and police applicants 2010 – 7 Detectives investigated 2,367 complaints clearing 2,241 of these 74% of robberies - cleared 67% of burglaries - cleared 100% of rapes – cleared Total of 94.68% of all cases- SIGNIFICANTLY higher than the National Average 2010 – Det. Jennifer King graduated from the National Forensic Academy and became one of only four graduates that currently work in the State of Delaware

Sex Offenders Enforcement Section Consists of 2 officers - At any given time there is between 175-225 sex offenders in Dover Tasked with the following: *Keep track of all sex offenders who reside, work or attend school in Dover *Make appropriate notifications to the public *Obtain warrants if an offender violates the conditions of the program *Aggressively search for those with warrants and make arrests *Conducts audits on all offenders to ensure compliance Tier 1 - audited annually Tier 2 - audited bi-annually Tier 3 - audited quarterly

Quality of Life Neighborhood Enforcement Team (QOLNET) Despite a reduction in staffing QOLNET still provided a successful proactive policing. QOLNET still takes a stand on nuisance crimes such as: Loud Music Drinking in Public Street Level Drug Dealing Prostitution Year End Total for this section are: 571 Criminal arrests 294 Dover City Ordinance Violations 1726 complaints assigned

DOVER VOLUNTEER FIRE DEPARTMENT

Dover Fire Department
931 emergency responses last year
2646 hours of firefighter training provided which entailed 50 different training courses
Emergency Fire Dispatch Training Certification for Fire Dispatchers and the Fire Chief’s Assistant.
Over 3,000+ children participated in fire safety programs
Numerous smoke detectors given to City residents

Dover Fire Department * In 2010, Approximately 200 men and women volunteered an estimated 20,000 hours of time to help make Dover safe. * Several members completed training for National Pro-Board Firefighter I & II. Department currently maintains and operates: 5 Engines, *1 Ladder, 1 Heavy Rescue, 1 Brush Unit, 1 Foam Unit, 1 Rescue Boat, 1 Utility, and 2 Command Vehicles. *A new ladder was ordered and delivery is expected in summer of 2011. We continue to provide superior fire and rescue services to the greater Dover area!

PUBLIC UTILITIES DEPARTMENT

Public Utilities Improved Electric Service
Completed the 69Kv Feeders doubling 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
COMPLETED installing pollution control equipment at the power plant to improve Dover’s air quality.
COMPLETED: Replaced air monitoring equipment to ensure regulatory compliance.
COMPLETED our Mid-City Substation: Modified to improve the electric reliability of the southern end of the City as well as incorporating environmental improvements.

Water System Upgrades ♦ Installed 1.8 miles of new water main in FY ‘09/’10 helping to mitigate brown water issues. ♦ Will start the installation of an additional 2.7 miles of new water main next month. 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.

Water System Upgrades *Completed the upgrade of 3 aging pumping stations. *Replacement of one station is to occur next year. *Completed installation of the Rt. 13 sanitary sewer interceptor. *Completed rerouting of three force mains to better utilize the system (Fox Hall, Del Tech and Del State) *Started repair/replacement project to address the inflow infiltration of groundwater into the sanitary sewer system.

Taxable Property Values Beginning Fiscal VALUE: Year 2011 $3,228,323,060 (July 1, 2010) % of change: increase of 11.36% from last year Value Change: Please note: This does not include $329,261,940 Senior Citizen or Disability Discount (Value change is the increase in value from last year)

Parks and Recreation Department

Parks and Recreation •Silver Lake Revitalization continued making significant progress this past year. The Silver Lake Watershed Plan was completed by the Watershed Coordinator. In addition, we have a conceptual plan for restoration efforts to the St. Jones from Division Street to Loockerman Street. • Greater Dover Arts Council awarded the Mayor’s Youth Arts Award to City of Dover youth residents Jordan Beard, Ronald Rider, Jr., and Jeffrey Heilman. •Athletic leagues (softball & field hockey) hosted approximately 1,500 players this past year. •Wilmington Saving Fund Society (WSFS) graciously co-sponsored our 2010 Concerts On The Green series and has pledged support again this year for the 2011 series.

PITTS CENTER John W. Pitts Recreation Center hosted 157,931 guests (program & open gym participants, meeting attendees, and spectators) since its opening in April 2008. • 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 registration.) •Open Gym Registration - Total ID cards issued: 4,147 City Residents: 1,880 (45%) Non-City Residents: 2,265 (55%)

PITTS CENTER Program Attendance FYTD 11 Total 49,725 Open Gym 8,399 Fitness Classes 4,636 Leagues 26,900 Camps 921 Sports Classes 2,416 Meetings & Rentals 5,674 Enrichment Classes 471 Program Attendance figures includes participants, parents and spectators in the facility

The NEW Dover Public Library

Another busy year …
Construction Documents completed
Capital Campaign goes into high gear – $1.3 million by April 2011
Access Road funded with bi-partisan Legislator support
Access Road Construction completed
Kent County Levy Court gets on board with $ 1 million contribution
City Council approves bids

April 5 Ground Breaking

Another banner year … • 36,534 Library Card Holders • 358,381 visitors • 375,632 items loaned • 429 programs offered • 9,898 people attended programs • 21 computers available for the public • Services 68 hours a week

Library Partners Crucial •DE Division of Libraries •DE Economic Development Office •DE Public Archives •Bayhealth Hospital •Elizabeth Murphey School •Wesley College •DE Money School •DE Home School Organizations •US Census Bureau •DE Division Historical & Cultural Affairs

Downtown Dover Partnership and Economic Development Office

Downtown Dover Partnership and Economic Development Office •Accredited as one of Delaware’s eight (8) nationally recognized Main Street programs •1651 Volunteer Hours for an investment valued at $33,433 Dollars invested in downtown improvements •Façade Improvements - $24,500 •Purchase of 22-24 W Loockerman - $225,000 •Asbestos Abatement at 22-24 W Loockerman - $38,537 •Development of Downtown Master Plan - $16,681

Downtown Dover Partnership •Six loans facilitated through SBA Loan Guarantee program resulting in $175,000 in funding for local businesses and stabilization of 14 jobs •Recognized as “Top Performing Technical Assistance Provider” under the US SBA Community Express Loan Program for 2010 •Downtown promotions implemented/supported Community Coat Drive Halloween Costume Parade Dover Days Home for the Holidays Festival of Lights Summer Beach Party First Friday Arts Circuit St. Patrick’s Day Parade First Night Dover Spring Splendor Fashion Show

Dover SUN Park

Dover SUN Park *The forging of a statewide partnership for bringing green jobs and green energy to Delaware. *All Piers Installed *All Tracker Rows Complete *17,000 of 34,000 Panels Installed *Substation Construction beginning this week *Power Generation begins in July *Ribbon-cutting ceremony week of August 8th

We Thank You for Serving Us Councilman Councilman Reuben Salters Ken Hogan 1989 -2011 2004 - 2011 Councilman Councilman Gene Ruane Jim McGiffin 2001-2011 2006-2011

City Council -2010

EXHIBIT #2 Annual Council Meeting of 05/09/2011 CDBG 2011 Program Allocation Actual Allocation Projected Allocation Revised City Council 2011 Project Recommendations Recommended funding Recommendations Approval Homeownership Assistance Program $40,000 $35,000 *CDBG Program Administraton $57,101 $52,635 **Dover Interfaith Mission for Housing $37,826 $34,479 ** Connections Comm. Support $5,000 $5,000 RC & D $40,000 $38,000 Infrastructure Project (streets) $65,580 $60,081 Housing Rehabilitation Program $40,000 $38,000 Total $285,507 $263,195 * Program administration cannot exceed 20% of the total (allocation plus program income) ** Dover Interfaith and Connections are public service activities that cannot exceed 15% of the total (allocation plus program income) The revised allocation reflects that allocation of the FFY2011 budget as communicated to the City by HUD. EXHIBIT #2 Annual Council Meeting of 05/09/2011

Distinguished Service Citation Zachery Carter Whereas, Zachery Carter is a strong advocate for Delaware libraries, ensuring the support of strong, professional, quality library services in the City of Dover; Whereas, Zachery Carter has served as the City of Dover's Director of Parks, Recreation and Library since 1988 and has served on the Council of Libraries since 2008; Whereas, Zachery Carter is a Charter member of the Board of Directors of the Dover Library Foundation; Whereas, Zachery Carter began the process to build a new public library facility for the City of Dover in 1999 and spear-headed a building referendum in 2000 which served as groundwork for future success; Whereas, Zachery Carter renewed the process to build a new public library facility to serve as the Anchor Library for Kent County in 2005 by developing a joint city-county Site Selection Committee; Whereas, Zachery Carter has led the planning process of the new Dover Public Library with energy, zeal, integrity, and vision which has resulted in the successful groundbreaking of the new Dover Public Library which will serve as the anchor library facility for central Delaware. Therefore, be it resolved, that the Delaware Library Association hereby awards to Zachery Carter the Distinguished Service Citation. ~ 2011 ~

Distinguished Service Citation Anthony DePrima Whereas, Anthony DePrima has worked for the City of Dover since 1991 as the Inspections and Planning Director; Whereas, Anthony DePrima has worked for the City of Dover as City Manager since 2001; Whereas, Anthony DePrima is a charter member of the Board of Directors of the Dover Library Foundation; Whereas, under Anthony DePrima's leadership, the City of Dover established a City goal to expand the role of the existing Dover Public Library in 2005 and in 2006 changed the goal to "establish a regional library in Dover;" Whereas, under Anthony DePrima's leadership this goal has been renewed annually as the #1 goal of the City of Dover; Whereas, under Anthony DePrima's leadership the City of Dover has successfully broken ground on a new 46,000 square foot public library facility to serve as the Anchor Library for Kent County and the people of Dover and central Delaware. Therefore, be it resolved, that the Delaware Library Association hereby awards to Anthony DePrima the Distinguished Service Citation. ~ 2011 ~

Distinguished Service Citation Eugene Ruane Whereas, Eugene Ruane has been an active advocate on behalf of library services for central Delaware and the Dover Public Library since 2001; Whereas, Eugene Ruane has provided leadership as the Dover City Council liaison to the Dover Library Advisory Commission; Whereas, Eugene Ruane has served as a member of the New Dover Public Library Steering Committee and a charter member of Board of Directors of the Dover Library Foundation; Whereas, Eugene Ruane's outspoken support of building a new state- of-the-art public library facility for the people of central Delaware; Whereas, Eugene Ruane's articulate and passionate demand for the provision of adequate library services for the people of Dover; has resulted in the successful groundbreaking of a new 46,000 square foot library building to serve as the Anchor Library facility for Kent County and the people of Dover. Therefore, be it resolved, that the Delaware Library Association hereby awards to Eugene Ruane the Distinguished Service Citation. ~ 2011 ~

City of Dover M AYOR AND COUNCIL 1 DRAFT PROPOSED COUNCIL RESOLUTION NO. 2011-10 2 A RESOLUTION APPROVING ISSUANCE OF CERTAIN BONDS OR NOTES BY THE ROBBINS HOSE COMPANY 3 NO. 1 OF DOVER, DELAWARE 4 WHEREAS, the Robbins Hose Company No. 1 of Dover, Delaware (the "Company") is a fire company organized and existing 5 under the laws of the State of Delaware; and 6 WHEREAS, the Company has provided and continues to provide firefighting services to an area within the City of Dover, 7 Delaware (the "City"); and 8 WHEREAS, the Company has advised the City that the Company proposes to issue up to $ 920,000 of bonds or notes of the 9 Company (the "Bonds") for the purpose of financing a portion of the costs of a new Pierce Quantum 100 ft. Ladder Truck, 10 and related equipment thereon for the Company (the "Project"); and 11 WHEREAS, it is the intent of the Company that the interest on the Bonds qualify for exclusion from gross income of the 12 owners thereof for federal income tax purposes pursuant to Sections 103 and 150 of the Internal Revenue Code of 1986, as 13 amended (the "Code"); and 14 WHEREAS, pursuant to Sections 103 and 147 of the Code, interest on the Bonds will not qualify for exclusion from gross 15 income of the owners thereof for federal income tax purposes unless the issuance of the Bonds is approved by the applicable 16 elected representative of a governmental unit with which the Company has entered into an agreement, after a public hearing 17 to consider the issuance of the Bonds has been conducted, following reasonable public notice; and 18 WHEREAS, the City and the Company previously entered into an Agreement (the "Agreement") pursuant to which the 19 Company agreed, among other things, to provide exclusive firefighting services to the City; and 20 WHEREAS, notice of the requisite public hearing was published in the Delaware State News, a newspaper of general 21 circulation in the City; and 22 WHEREAS, on May 23, 2011 the City Council of the City of Dover conducted a public hearing on behalf of the Company 23 for the purpose of considering the issuance of the Bonds; 24 NOW THEREFORE BE IT RESOLVED THAT, the Council of the City of Dover, Delaware, for the sole purpose of 25 qualifying the interest payable on the Bonds of the Company for exclusion from the gross income of the owners thereof for 26 federal income tax purposes pursuant to Section 103 of the Code, does hereby approve the issuance of bonds or notes by the 27 Company in a maximum aggregate principal amount of up to $920,000 for the purpose of financing a portion of the costs of 28 the Project, provided, that such bonds or notes shall be an obligation of the Company and shall never be a debt of the City 29 and the City shall not be liable for any payment on such bonds or notes. 30 ADOPTED: * 31 S:\RESOLUTIONS & PROCLAMATIONS\2011\DRAFT\Res. No. 2011-10 - Approving Issuance of Bonds - RHCo.wpd 32 33 CARLETON E. CAREY, SR. - MAYOR THOMAS J. LEARY - COUNCIL PRESIDENT 34 Actions History: 35 May 23, 2011 - Introduction and Public Hearing at Council P.O. Box 475 ˜ Dover, Delaware ˜19903 Community Excellence Through Quality Service

Page 1 of 2 NOTICE OF PUBLIC HEARING The City of Dover Council will hold a public hearing on Monday, June 13, 2011 at 7:30 PM in the Council Chambers of Dover City Hall to consider adoption of the following proposed Electric Fund budgets for the fiscal year beginning July 1, 2011 to June 30, 2012. The following budgets have been submitted to the Mayor and Council for their review and consideration and the amounts are subject to change. Reference copies of the proposed budget are available at the Dover Public Library, Weyandt Hall (5 East Reed Street), and the City Clerk’s Office. ELECTRIC REVENUE FUND Beginning Balance $11,867,003 Revenues Direct Sales to Customers $95,675,500 Purchase Power Adjustment (6,012,000) Utility Tax 1,966,100 Green Energy 129,000 Miscellaneous Revenue 919,000 Rent Revenue 225,000 Intrafund Service Receipts Water/Wastewater 236,055 Transfer from Rate Stabilization Reserve 1,000,000 Interest Earnings 233,000 Total Revenues $94,371,655 TOTAL BEG BALANCE & REVENUES $106,238,658 Expenses Power Supply $42,047,430 Power Supply Management 1,170,000 PJM Charges – Load 15,043,396 Capacity Charges 8,506,512 Contractual Services 115,000 Plant Operations 6,089,822 Generations Fuels 664,641 PJM Credits (1,285,675) Capacity Credits (7,388,283) Subtotal Power Supply & Generation 64,962,843 Transmission/Distribution 3,261,972 Electrical Engineering 1,222,523 Administration 629,724 Meter Reading 222,206 System Operations 475,895 Utility Tax 1,966,100 Subtotal Direct Expense $7,778,420

Other Expenses: Allowance for Uncollectibles $150,000 Retirees Healthcare 646,510 Intrafund Service Fees 3,556,264 Debt Service 3,336,800 Green Energy 129,000 Interest on Deposits 54,500 Inventory Write Offs 175,000 Subtotal Other Expenses $8,048,074 Transfer to Improvement & Extension $3,500,000 Transfer to General Fund 6,338,000 Transfer to Other Post Employment Benefit Trust 1,115,300 Transfer to Pension Trust 1,110,500 Subtotal Transfers to $12,063,800 TOTAL EXPENSES $92,853,137 CARRIED FORWARD BALANCE 13,385,521 TOTAL BUDGET $106,238,658 IMPROVEMENT & EXTENSION FUND Beginning Balance $2,561,096 Cash Receipts Interest Earnings $38,400 Transfer from Depreciation Reserve 300,000 Transfer from Electric 3,500,000 TOTAL BEG BALANCE & RECEIPTS $6,399,496 Expenses Electric Generation $1,810,410 Transmission and Distribution 748,337 Electrical Engineering 1,840,716 Meter Reading 20,000 Ending Year Balance 1,980,033 TOTAL EXPENSES & Ending Balance $6,399,496

City of Dover COUNCIL PRESIDENT APPOINTMENTS - 2011/2012 COMMITTEES A. LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE - This committee advises the city council on proposed Charter amendments, ordinances to be adopted or amended, and other legislative matters; financial matters, including the city's budget, assessments, and taxation and administrative issues, policy, procedures, and operations of the city. The committee advises the city council regarding matters relating to the mayor, council, city manager's office, finance department, administrative services, city clerk's office, tax assessor's office, human resources department, central services department, information technology department, election board, pension boards, and any other departments, committees, and other areas as deemed appropriate. Consists of five (5) members - three (3) elected City officials and two (2) City residents. Four (4) members shall be appointed by the Council President and one (1) member shall be appointed by the Committee Chair. a-1. William P. McGlumphy - Chair a-2. David L. Anderson a-3. William F. Hare a-4. Daniel T. Shevock (by Council President) a-5. Bobby C. Jones (by Committee Chair) B. PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE - This Committee advises the city council on parks, playgrounds, open space, and other recreational facilities and programs; matters relating to the community enhancements by reviewing and commenting on community plans, and recommends appropriate funding for each community improvement project; advises the city council on landscaping and beautification programs and tree preservation requirements, and assists in developing an understanding of the objectives and methods of tree conservation. The Committee advises city council regarding matters relating to the parks and recreation department, planning department, grounds department, community development, Silver Lake Commission, Greater Dover Arts Council, library commission, and other areas as deemed appropriate, including funding. Consists of five (5) members - three (3) elected City officials and two (2) City residents. Four (4) members shall be appointed by the Council President and one (1) member shall be appointed by the Committee Chair. b-1. Sophia R. Russell - Chair b-2. David L. Anderson b-3. William F. Hare b-4. Ann Baker Horsey (by Council President) b-5. David A. Lewis, Jr. (by Committee Chair)

COUNCIL PRESIDENT APPOINTMENTS - 2011/2012 COMMITTEES PAGE 2 C. SAFETY ADVISORY AND TRANSPORTATION REVIEW COMMITTEE - This Committee advises the city council on public safety issues, policies, procedures, and operations relative to emergency operations, and fire and police services. The Committee shall act as an advisory committee to the city council regarding matters relating to the police department, fire department, department of inspections, and other areas as deemed appropriate. Consists of five (5) members - three (3) shall be elected City officials and two (2) shall be City residents. Four (4) members shall be appointed by the Council President and one (1) member shall be appointed by the Committee Chair. c-1. James L. Hutchison, Sr. - Chair c-2. Sean M. Lynn c-3. Sophia R. Russell c-4. John J. Davis (by Council President) c-5. Wayne Hutchison (by Committee Chair) D. UTILITY COMMITTEE - This committee advises the city council on the installation, maintenance, repair, improvement, and relocation of electric, water, sewer, streets, communication utilities and other infrastructures within the city and lawfully extending beyond the city corporate limits; shall advise the city council on the issue of utility consumption rates, suggested code amendments, and condemnation of public rights-of-way; and shall act as an advisory committee to determine and establish utility issues, policies, procedures, and operations relative to electric, water, sewer, communications, etc., including, but not limited to, nonconsumption utility fees, utility extensions, impact fees, and service connection fees. The Committee shall act as an advisory committee to the city council regarding matters relating to the electric department, and public works department, including water, sewer, and sanitation divisions, and other areas as deemed appropriate. Consists of five (5) members - three (3) shall be elected City officials and two (2) shall be City residents. Four (4) members shall be appointed by the Council President and one (1) member shall be appointed by the Committee Chair. d-1. David L. Bonar - Chair d-2. Sean M. Lynn d-3. Beverly C. Williams d-4. Richard K. Snaman (l/m) (by Council President) d-5. Lester L. Blakeman, Sr. (by Committee Chair) E. COMPENSATION COMMISSION - This Commission considers compensation for the Mayor, City Council, and paid members of City Committees and Commissions. Consists of five (5) members - one (1) appointed by the Mayor, one (1) appointed by the Council President, and three (3) appointed by City Councilmembers. e-1. Kenneth L. Hogan

COUNCIL PRESIDENT APPOINTMENTS - 2011/2012 COMMITTEES PAGE 3 F. CONSTRUCTION CODE BOARD OF APPEALS - This committee shall hear appeals by any person aggrieved by a decision of the building inspector in respect to the provisions of Chapter 22 - Buildings and Building Regulations (Plumbing, Mechanical, and Fire Prevention). Consists of three (3) members - two (2) elected City officials and the City Manager. f-1. David L. Anderson - Chair f-2. Sean M. Lynn G. OTHER POST-EMPLOYMENT BENEFITS (OPEB) TRUST FUND BOARD - This board shall adopt a trust agreement for the OPEB fund (and may amend the trust agreement from time to time), shall take all actions necessary and appropriate to establish and maintain the OPEB fund as a trust that is exempt from taxation under Internal Revenue Code § 115 [26 U.S.C. § 115]. The trust shall be maintained and administered by the board solely for the benefit of participants, retirees, and beneficiaries by providing payments for retiree health insurance for medical care in compliance with Internal Revenue Code § 105 [26 U.S.C. § 105] and with the Dover Code as presented and verified by representatives and/or retiree health insurance service providers of the city. Consists of Five (5) members - the controller/treasurer, human resources director, city manager, and two (2) elected city officials. g-1. William F. Hare - Chair g-2. Beverly C. Williams H. RETIREMENT COMMITTEE - GENERAL EMPLOYEE PENSION PLAN - The duties of this committee are to manage the city employees' pension plan. Consists of seven (7) members - two (2) elected City officials, the City Manager, the City Controller/Treasurer and three (3) elected by eligible employees, with three (3) year staggered terms with elections held in June. h-1. David L. Bonar h-2. William P. McGlumphy I. RETIREMENT COMMITTEE - POLICE PENSION PLAN - This committee shall administer the [retirement] plan and shall have the power and the duty to take all action and to make all decisions necessary or proper to carry out the plan. Consists of seven (7) members - two (2) elected City officials, the City Manager (Ex-Officio), Chief of Police (Ex-Officio), and three (3) elected by members of the plan to three (3) year staggered terms, with elections held in January and presented to Council for confirmation. i-1. David L. Bonar i-2. William P. McGlumphy

COUNCIL PRESIDENT APPOINTMENTS - 2011/2012 COMMITTEES PAGE 4 MISCELLANEOUS COMMITTEE APPOINTMENTS - COUNCIL PRESIDENT J. KENT COUNTY TOURISM j-1. Sophia R. Russell K. KENT ECONOMIC PARTNERSHIP k-1. James L. Hutchison, Sr. L. LIAISON TO CHAMBER OF COMMERCE AND GREATER DOVER COMMITTEE l-1. Carleton E. Carey, Sr. l-2. James L. Hutchison, Sr. M. LIAISON TO KENT COUNTY (CITY/COUNTY COMMITTEE) m-1. David L. Bonar m-2. Carleton E. Carey, Sr. m-3. Anthony J. DePrima m-4. William F. Hare m-5. Thomas J. Leary m-6. Beverly C. Williams FORMS ANNLMTG.CP Prepared by: City Clerk's Office/tm S:\PACKETS\2011\Council\05-23-2011\Annual Meeting-Council President Rev. 05-17-2011.wpd