Council Packet

REGULAR COUNCIL MEETING AGENDA August 8, 2005 - 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 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 - Regular Council Meeting of July 25, 2005 2. Presentation - Recognition of Service - Dr. Nilakantan Nagarajan, DoverHuman Relations Commission (April 2002 - July 2005) 3. Update (15 Months) - Brown Water 4. Public Hearing/Final Reading - Rezoning Property located at 487 S. Queen Street, owned by Michael Sanchez. The property is currently zoned C-1 (Neighborhood Commercial Zone) and the proposed zoning is C1-A (Limited Commercial Zone) The First Reading of the proposed ordinance was accomplished during the Council Meeting of July 25, 2005. 5. Safety Advisory and Transportation Committee Report - July 26, 2005 A. Briefing on DelDOT Projects * B. Kent County Transportation Management Team * C. Radio Paging System * 6. Monthly Budget Report - June 2005 7. Evaluation of Bids A. Electric Remote Read Meters (Annual Contract) B. Replacement of "Green Screen" HTE With NaviLine Version C. Puncheon Run Pumping Station Upgrade - Engineering Services Agreement (Construction)

Council Agenda August 8, 2005 Page 2 * 8. Reappointments - Mayor Speed A. Board of Adjustments - Arthur G. Ericson (Three Year Term to Expire July 2008) B. Dover Housing Authority - Beverly C. Williams (Six Year Term to Expire August 2011) C. Ethics Commission - Robert Bunnell (Five Year Term to Expire July 2010) D. Historic District Commission d-1. C. Terry Jackson, Resident Representative (Three Year Term to Expire July 2008) d-2. James D. McNair, II, Profession Representative (Three Year Term to Expire July 2008) E. Library Advisory Commission - Lois Dunning (Five Year Term to Expire June 2010) * 9. Appointment of 2005 Ad-Hoc Charter Review Committee - Council President Williams A. Thomas J. Leary (Chairman) E. Holly Malone B. Robin Christiansen F. Robert Merritt C. Evelyn Greenwood G. Dr. Scott Miller D. Willie Jones H. Daniel Scheller 10. Final Reading - Proposed Ordinances The First Reading of the following proposed ordinances was accomplished during the Council Meeting of July 25, 2005. Copies of the proposed ordinances are available at the entrance of the Council Chambers. A. Chapter 102 - Taxation, Article III - Realty Transfer Tax, Section 102-71 - Definitions, Paragraph (a)(3) B. Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, Section 102-111 - Purpose and Section 102-113 - Qualifications, Paragraph (d) 11. Council Members Comments /jg S:\ClerksOffice\Agendas&Minutes\Council-Agendas\2005\08-08-2005.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.

REGULAR COUNCIL MEETING The Regular Council Meeting was held on July 25, 2005 at 7:30 p.m. with Council President Williams presiding. Council members present were Mr. Carey, Mr. Sadusky, Mr. Slavin, Mr. Ritter, Mr. Hogan, Mr. Salters, and Mr. Ruane. Mr. Pitts was absent. Council staff members present were Police Chief Horvath, Mrs. Mitchell, Mr. Galvin, Fire Chief Bashista, Mr. DePrima, City Solicitor Rodriguez, Mrs. Green, and Mayor Speed. OPEN FORUM The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Williams declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action. Mr. Richard Snyder, Newark, Delaware, advised members that he was in attendance during the last Council Meeting and was impressed with the proposed Eden Hill Farm Project. It was his feeling that it will prove to be beneficial to the City and commended members for supporting such a project. The invocation was given by Chaplain Dixon, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. Carey moved for approval of the agenda as presented, seconded by Mr. Slavin and unanimously carried. Mr. Ritter requested that item #4D, City Manager’s Report, be removed from the consent agenda. Mr. Carey moved for approval of the consent agenda as amended, seconded by Mr. Sadusky and carried by a unanimous roll call vote (Mr. Pitts absent). ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JULY 11, 2005 The Minutes of the Regular Council Meeting of July 11, 2005 were unanimously approved by motion of Mr. Carey, seconded by Mr. Sadusky and bore the written approval of Mayor Speed. PROPOSED RESOLUTION - SUPPORT OF APPLICATION FOR THE GREATER DOVER COMMITTEE’S LIVEABLE DELAWARE APPLICATION - $10,000 GRANT - COMPREHENSIVE STUDY OF DOWNTOWN DOVER Ms. Lisa Ratliff, Executive Director of the Greater Dover Committee, requested consideration of a Resolution in support of a comprehensive, solution-focused study of downtown Dover. Mr. Galvin, Director of Planning and Inspections, explained that the “Livable Delaware” Planning Program provides funding for activities of this type to assist municipalities in dealing with issues related to their development, transportation, land use regulations and planning. The Greater Dover Committee wishes to submit an application for funding through the “Livable Delaware Assistance to Municipalities Counties Program” in the amount of $10,000 to aid in conducting the study. Mr. Galvin stated that essentially, the Greater Dover Committee wishes to conduct a study with five (5) goals, as follows: 1) identify opportunities and related barriers to the success of downtown Dover to become a day and night destination; 2) identify solutions from other venues similar to downtown Dover; 3) evaluate current incentive programs and identify and prioritize new incentives to catalyze

CITY COUNCIL MEETING OF JULY 25, 2005 PAGE 2 the revitalization of downtown; 4) identify needed changes in the mix or balance of core uses in the subject area and identify ways of changing the mix; and 5) identify the ways to coordinate the various groups and organizations working on issues in downtown Dover. Mr. Hogan moved to approve the request of the Greater Dover Committee, seconded by Mr. Carey, and by a unanimous roll call vote (Mr. Pitts absent), Council adopted the following Resolution: WHEREAS, the Mayor and Council of the City of Dover support the Greater Dover Committee and their project to conduct a comprehensive, solution-focused study of the downtown Dover in order to develop findings and conclusions that will be directed toward the long-range improvement of the vitality of downtown Dover; and WHEREAS, the “Livable Delaware” Planning Program provides funding for activities of this type to assist municipalities in dealing with issues related to their development, transportation, land use regulations and planning to implement the goals and objectives of the “Livable Delaware” initiatives; and WHEREAS, the City of Dover does not possess the total capitol required to conduct the activity described herein. NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the City of Dover approves the submission of an application for funding through “Livable Delaware Assistance to Municipalities Counties Program” in the amount of $10,000 to aid in conducting a comprehensive, solution-focused study of downtown Dover. ADOPTED: JULY 25, 2005 LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - JULY 11, 2005 The Legislative, Finance, and Administration Committee met on July 11, 2005 with Chairman Salters presiding. Proposed Ordinance Amendments - Relief of the Real Estate Transfer Tax for First Time Home Buyers and Abatement of Real Property Taxes in the Downtown Area During their Regular Meeting of March 28, 2005, members of Council approved the Parks, Recreation, and Community Enhancement Committee’s recommendations regarding a homeownership initiative for the downtown area. This approval required the development of ordinances that would extend the first time home buyer transfer tax exemption to the seller in the target area and to provide real estate tax abatement for home purchasers in the target area. The target area has been defined as Mary Street to Loockerman Street and Governors Avenue to West Street. Members were provided proposed ordinance amendments as prepared by City Solicitor Rodriguez. Responding to Mr. Hogan, members concurred that there should be a sunset provision to allow members the opportunity to revisit this subject to determine if it is a program they wish to continue or if it should be discontinued.

CITY COUNCIL MEETING OF JULY 25, 2005 PAGE 3 Chapter 102 - Taxation, Article III - Realty Transfer Tax, Section 102-71 - Definitions, Paragraph (a)(3) {Old Code Section 19.5-19 (9)} During the committee meeting, members amended Section 102-71 by adding the following sentence to Paragraph (a)(3): “This homebuyer’s exemption is to be effective from the date of adoption to August 1, 2010". The committee recommended adoption of the ordinance amending Section 102-71, Paragraph (a)(3), as amended. Mr. Salters noted that the Mayor has suggested that the last sentence of Paragraph (a)(3) be amended to include “for the seller” between the words “exemption” and “is”. He also noted that the Mayor has suggested adding the following sentence to Paragraph (a)(3) of Section 102-71: “Council shall have the right to deny this exemption to any property owner where the sale and purchase appears to be done fraudulently to take advantage of the realty transfer tax exemption ordinance”. Mr. Salters moved for approval of the committee’s recommendation and the additional amendments as recommended by Mayor Speed. The motion was seconded by Mr. Carey and unanimously carried. (The First Reading of the ordinance will take place during the latter part of the meeting). Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, Section 102-111 - Purpose and Section 102-113 - Qualifications, Paragraph (d) {Old Code Sections 19.5-31 and 19.5-33(e)} During the committee meeting, members noted a typographical error in Paragraph (d) of Section 102-113 that should be corrected by replacing “twenty-five percent (25%)” with “seventy-five percent (75%)” and by replacing “seventy-five percent (75%)” with “twenty-five percent (25%)”. This correction has been confirmed by City Solicitor Rodriguez and is a true reflection of the Parks, Recreation and Community Enhancement Committee’s recommendation. Members also amended Section 102-113 by adding the following sentence to Paragraph (d): “In order to be eligible for this program, application must be received by the City of Dover prior to August 1, 2010”. The committee recommended adoption of the ordinance amending Section 102-111 and Paragraph (d) of Section 102-113, as corrected and amended. Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. Carey and unanimously carried. (The First Reading of the ordinance will take place during the latter part of the meeting). E-Government Strategic Plan Presentation Members reviewed an E-Government Strategic Plan for the City of Dover that was developed by Mr. Callan, Information Technology Director. He reminded members that the City of Dover Internet site won an award for being among the top 10 municipal sites for 2003. The E-Government Strategic Plan provides the City’s goals, current status, methodology, future initiatives, measurement of success and its purpose is to communicate how the City can continue to expand and advance Internet based services. It was noted that the Plan includes information regarding on-line payment method options. Mr. Callan explained that in order for Dover to provide an on-line payment method for a growing list of services, the City must determine what methods of payment the City will accept.

CITY COUNCIL MEETING OF JULY 25, 2005 PAGE 4 Staff recommended endorsement of the E-Government Strategic Plan which provides a direction for continuing the expansion of the City’s services on the Internet. The committee recommend approval of staff’s recommendation. By consent agenda, Mr. Carey moved for endorsement of the E-Government Strategic Plan as recommended by the committee, seconded by Mr. Sadusky and carried by a unanimous roll call vote (Mr. Pitts absent). Mr. Salters moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mr. Carey and unanimously carried. MONTHLY REPORTS - JUNE 2005 By motion of Mr. Carey, seconded by Mr. Sadusky, the following monthly reports were accepted by consent agenda: Chief of Police Report City Assessor Report (March, April, May, and June) City Clerk/Alderman Report (Fines) Mayor's Report Planning and Inspections Report Robbins Hose Company No. 1 Report Referring to page 15 of the City Manager’s Report, Mr. Ritter questioned how the funding was acquired for the Richardson Park Fencing since Council approved a request of staff to transfer these project funds to another project a few months back. Responding, Mr. DePrima stated that during the discussion, members of Council relayed concern with delaying the installation of the fence due to safety issues. It was apparent that members wanted the fencing installed around Richardson Park; therefore, the necessary funds were actually acquired to accomplish both projects. Since he could not recall exactly which project or budget line item the funds were obtained from, Mr. DePrima indicated that he would provide this information to members. Note by City Clerk: According to the City Manager, staff requested authorization to transfer funds earmarked for the Richardson Park Fencing to complete the St. Jones River Pedestrian Bridge Project. Because the project was carried into fiscal year 2005/06, instead of using fiscal year 2004/05 funding from the Richardson Park Fence project, the City Manager decided to make up the difference by using funds from the ADA project funds or transferring funds from a “yet to be identified” general fund account that is under budgeted at the time of the mid-year review. Mr. Ritter referred to page 14 of the City Manager’s Report and requested that staff include a bar graph depicting total flow to Kent County parallel with the total water production. This would provide an idea of the water production versus the flow going into Kent County and provide an understanding of how much excess the City is paying to Kent County. Mr. DePrima indicated that he would attempt to provide the information for the next report. Mr. Ritter noted that the Water Master Plan is 96% complete and questioned when Council would be provided an update. Mr. DePrima indicated that there is one more review scheduled and that the final report is in draft form. He assured members that Council would be provided an update in the near future. Mr. Ritter also questioned why there is sometimes a strong chlorine smell in the water. Responding, Mr. DePrima stated that there are various reasons, such as the amount of water used,

CITY COUNCIL MEETING OF JULY 25, 2005 PAGE 5 which wells are operating, the aquifer sources, etc. Mr. Ritter suggested that the City consider the use of zinc orthophosphate, which many municipalities have recently started to introduce into their water systems. Mr. Hogan moved for acceptance of the City Manager’s Monthly Report for June 2005, seconded by Mr. Salters and unanimously carried. EVALUATION OF BID - FISCAL YEAR 2006 STREET PROGRAM In conjunction with the City’s Capital Investments Plan, it is proposed to rehabilitate various pavement sections throughout the City during fiscal year 2006. The following 18 locations were tentatively outlined in the proposed scope of work: Babb Drive Pennsylvania Avenue Crescent Drive Old Forge Drive Millcreek Circle Mimosa Avenue Village Drive George Washington Sackarackin Avenue S. Queen Street S. Kirkwood Street Willis Road Wilson Drive Reed Street Woodburn Circle S. Bradford Street Legislative Avenue Woodcrest Walkway Mr. DePrima advised members that the proposed work for Babb Drive includes site layout, storm drainage, excavating for the installation of a stone base, curbing, sidewalk, and Type B & C Asphalt for a 235 linear foot section of new road. Two (2) contractors submitted bids: Pennsy Supply, Inc., in the amount of $1,576,386.30; and George & Lynch, Inc., in the amount of $1,666,360.75. Members were provided unit prices received from the two (2) contractors. Staff recommended awarding a unit price contract for the Fiscal Year 2006 Street Program to Pennsy Supply, Inc. based on the unit prices identified. The scope of work for the program will be altered to reflect the funding that has been secured to complete each location. Staff will add or delete from the contract based on available funding throughout the fiscal year and inform the City Manager of such additions or deletions. All work will be paid for at the unit prices bid for work completed and accepted by the Department of Public Works. The total work authorized under this contract will not exceed the available funding. Mr. Carey moved to award the Fiscal Year 2006 Street Program to Pennsy Supply, Inc., as recommended by staff. The motion was seconded by Mr. Sadusky and carried by a unanimous roll call vote (Mr. Pitts absent). SOUTHEAST WATER LOOP - ENGINEERING SERVICES AGREEMENT (DESIGN) In November 2004, a Request for Qualifications for water and wastewater engineering services was issued. Based on the review of the submission from various engineering firms, staff requested a cost proposal from Pennoni Associates, Inc. to provide professional engineering services for the design of the Southeast Water Loop. The project will involve the design of water main to connect existing infrastructure in River’s Edge Apartments with existing infrastructure on DelDOT’s Danner Farm Campus. This project will increase transmission capacity from east to west in the City’s water system as well as improve system pressures during peak demands in this sector of the distribution system. This loop was modeled as part of the 2005 Water Master Plan Update and is an important capital improvement to the southern end of the distribution and transmission system.

CITY COUNCIL MEETING OF JULY 25, 2005 PAGE 6 Staff recommended awarding the engineering services agreement to Pennoni Associates, Inc. in the amount of $76,500 to design all of the improvements necessary to construct the Southeast Water Loop which will connect the City’s water distribution system from River’s Edge Apartments to the DelDOT Danner Farm Campus. Mr. Carey moved to award the engineering services agreement for the Southeast Water Loop to Pennoni Associates, Inc. in the amount of $76,500, as recommended by staff. The motion was seconded by Mr. Sadusky and carried by a unanimous roll call vote (Mr. Pitts absent). FIRST READING - PROPOSED ORDINANCES Council President Williams reminded the public that copies of the proposed ordinance are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Final action by Council on the proposed ordinances will take place during the Council Meeting of August 8, 2005. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the proposed ordinance amendments as read by the City Clerk, by title only, as follows: CHAPTER 102 - TAXATION , ARTICLE III - REALTY TRANSFER TAX , SECTION 102-71 - DEFINITIONS, PARAGRAPH (A )(3) CHAPTER 102 - TAXATION , ARTICLE IV - ABATEMENT OF REAL ESTATE TAXES, SECTION 102-111 - PURPOSE AND SECTION 102-113 - QUALIFICATIONS, PARAGRAPH (D ) FINAL READING - PROPOSED ORDINANCE The First Reading of the following proposed ordinance was accomplished during the Council Meeting of July 11, 2005. Note by City Clerk: Initial discussions regarding the proposed amendment reference the 1981 Dover Code, Chapter 13 - Motor Vehicles and Traffic, Division I - Generally, Section 13-30.2 - Vehicle Parking Limited Where Carrying Capacity is in Excess of One Ton, and Trailer and Motor Home Parking. Chapter 106 - Traffic and Vehicles, Article III - Stopping, Standing and Parking, Division 1 - Generally, Section 106-123 - Vehicle Parking Limited Where Carrying Capacity is in Excess of One Ton, and Trailer and Motor Home Parking Council President Williams noted that there was a typographic error. She advised members that the Chapter of the ordinance should be reflected as 106 rather than 102 and assured members that the City Clerk will correct the ordinance for its final adoption. Mr. Carey moved that the Final Reading of the proposed ordinance be acknowledged by title only, seconded by Mr. Hogan and unanimously carried. Mr. Salters moved for adoption of the following ordinance, seconded by Mr. Hogan and carried by a unanimous roll call vote (Mr. Pitts absent):

CITY COUNCIL MEETING OF JULY 25, 2005 PAGE 7 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That Chapter 106 - Traffic and Vehicles, Article III - Stopping, Standing, and Parking, Division I - Generally, of the Dover Code, be amended by striking Section 106-123 - Vehicle Parking Limited Where Carrying Capacity is in Excess of One Ton, and Trailer and Motor Home Parking in its entirety and inserting in lieu thereof the following: (a) It shall be unlawful for any person to park any vehicle with a carrying capacity of more than one (1) ton, any trailer which includes but is not limited to boat, utility, construction or one that is used to carry goods regardless of weight capacity and is designed to be towed or pulled by another vehicle, or any vehicle or trailer on the City of Dover streets for a period longer than two (2) consecutive hours. (b) It shall be unlawful for any person to park any commercial vehicle with a carrying capacity of more than one (1) ton, any trailer which includes but is not limited to utility, construction or one that is used to carry goods regardless of weight capacity and is designed to be towed or pulled by another vehicle, or any vehicle or trailer combination thereof, or any travel trailer in any residential zone in the city except for temporary parking for immediate deliveries, pickups, and/or service calls to residences or for construction work on residential properties. A commercial vehicle shall be one which is used or maintained for the transportation of persons or property for hire, compensation or profit, except taxicabs. (c) It shall be unlawful for any person to park a trailered boat under twenty-five (25) feet on the streets of Dover for a period longer than twelve (12) consecutive hours. For any trailered boat twenty-five (25) or greater, refer to Section 13.30.2(a). (d) It shall be unlawful for any motor home to park on any residential street for a period longer than twelve consecutive hours without a permit. A resident owner of a motor home may request a parking permit from the City of Dover to park on a residential street in the vicinity of their residence for a period not to exceed 72 hours. The permit would be made available at no cost to the resident. The parking permit shall be displayed in the front window of the vehicle visible from the street. A resident may only request such a permit three times in any twelve month period. (e) Nonresidents are exempt from subsection (d) for a period of up to seven (7) days as long as their motor home or travel trailer does not create a safety hazard or interfere with traffic in the residential area that they are parked in. (f) All parking allowed in this section only applies to streets that can accommodate parking in compliance with Appendix A, Article VI, Section A. ADOPTED: JULY 25, 2005 COUNCIL MEMBERS COMMENTS Comments made by Mr. Ritter have been made a part of the record under the Monthly Reports (City Manager).

CITY COUNCIL MEETING OF JULY 25, 2005 PAGE 8 Mr. Carey moved for adjournment, seconded by Mr. Sadusky and unanimously carried. Meeting Adjourned at 8:03 P.M. JANICE C. GREEN CITY CLERK All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of July 25, 2005, are hereby approved. STEPHEN R. SPEED MAYOR /JG S:\ClerksOffice\Agendas&Minutes\Council-Minutes\2005\07-25-2005- Council.wpd

PETITION TO AMEND ZONING DISTRICT Before the Dover City Council August 8, 2005 Applicants/Owners Michael Sanchez 67 Egret Lane Camden-Wyoming, DE 19934 Location: East side of South Queen Street on the corner with West Water Street. Property Addresses 487 South Queen Street Tax Parcel ID #: ED-05-077.09-03-03.00/000 Size: 13,771 square feet ± Present Zoning: C-1 (Neighborhood Commercial Zone) Proposed Zoning: C-1A (Limited Commercial Zone) permitting: Convenience retail stores; personal service stores, including but not limited to, barber shops, beauty shops, and tailors; service establishment furnishing services other than of a personal nature; residences in conformance with Article 3 §2 General Residential Zone; Banks or business, professional, or governmental offices; and other retail and service establishments but excluding the following: gasoline filing stations and motor vehicle storage, repair or service except that gasoline pumps shall be permitted as an accessory use (subject to conditional use approval; wholesaling, warehousing or storage; manufacturing, printing, assembling, converting, altering, finishing, cleaning or any other processing of goods on premises except as permitted in C-1; and excessive traffic generating uses such as theaters, drive-ins, bowling alleys, and other commercial, recreation, restaurants, etc. Present Use: Service Commercial (former TV Repair shop) Proposed Use: Professional Office (Physical Therapy Office) File Number: Z-05-04 Comprehensive Plan: Mixed Use

Z-05-04 Lands of Michael Sanchez: Rezoning C-1 to C-1A Planning Commission Recommendation Report to City Council for August 8, 2005 Page 2 of 7 Findings and Recommendations of the Dover Planning Commission This petition was considered at the July 18, 2005 meeting of the Planning Commission. The following members were present: Chairman Mr. Friedman, Mr. DiMondi, Mr. Tolbert, Mr. Nichols, Mr. Benton, Mr. Holt, and Mr. VonReider. The Planning Commission recommends approval of this request (Rezoning application Z- 05-04) for Lands of Michael Sanchez at 487 South Queen Street to rezone one parcel consisting of 13,771 S.F. ± of land from C-1 (Neighborhood Commercial Zone) to C-1A (Limited Commercial Zone). The subject parcel is located on the east side of South Queen Street on the corner with West Water Street. The motion for approval of the rezoning passed 7-0 of those members present based on the testimony provided, the staff recommendation of support, the Development Advisory Committee comments and the Planning Commission’s finding that is in fact a mixed use area and it is compatible with adjacent uses being designated as C-2A and C-3. The following information was considered by the Planning Commission in addition to the guidance provided in the Zoning Ordinance: This application is to rezone the properties at 487 South Queen Street. The subject area is located on the north side of West Water Street, fronting on both West Water Street and South Queen Street. The subject area consists of a single parcel of land totaling 13,771 square feet +/-. The property is currently zoned C-1 (Neighborhood Commercial Zone) and was formerly used as Al’s TV Repair. The proposed zoning classification is C-1A (Limited Commercial Zone). The owner of record is Michael Sanchez. Existing Property The existing property is a 13,771 square feet parcel with a 1,275 square feet single story frame Subject property building that formerly housed Al’s TV Repair. There is a 4,000 square feet ‘earth and stone’ parking area and a paved entrance on the site. Surrounding Land Uses: This property is located on the southwestern edge of the Downtown commercial area. There is a vacant house immediately to the east zoned RGO (General Residence and Office Zoning) and an office on the parcel just beyond fronting on South New Street zoned C-2A (Limited Central Commercial Zone). To the north is the Dover Housing Authority’s Queens Court and to the northwest is Owens Manor, both senior housing buildings zoned RG-4 (General Residence Zone for Multi-Story Apartments). To the south across Water Street is the Delaware Correctional

Z-05-04 Lands of Michael Sanchez: Rezoning C-1 to C-1A Planning Commission Recommendation Report to City Council for August 8, 2005 Page 3 of 7 Facility work release program zoned RGO. To the west is the Dover Police Department and JP Court 7, both zoned IO (Institutional and Office Zone) and to the southwest is the former George and Lynch property zoned C-3 (Service Commercial Zone). Comprehensive Plan: In the 2003 Comprehensive Plan Update, the Mixed Use Area Land Development Plan recommends that this property be used for Mixed Uses. The 1996 Comprehensive Plan recommended the property be part of the Downtown Mixed Use Development Area. Institutional Request for C-1A (Limited Commercial Zoning) The types of permitted uses in the C-1A Subject property (Limited Commercial Zone) are outlined in Office Article 3 §12. Article 3 §12.11 All uses permitted in the Neighborhood Commercial C-1 Zone, (11.11 Convenience retail stores such as drug stores, grocery stores, luncheonettes, variety stores or combinations thereof. 11.12 Personal service stores such as, but not limited to, barber shops, beauty parlors, and tailors, provided that where steam pressure is used in clothes pressing it shall not exceed 60 pounds per square inch. 11.13 Service establishments, furnishings, services other than of a personal nature, but excluding gasoline filling stations and motor vehicle storage, repair, or service.) with no limitation on size of establishments. 12.12 Residences conforming to the regulations set forth in Article 3, Section 2. 12.13 Banks or businesses, professional or governmental offices. 12.14 Other retail and service establishments but excluding: 12.141 Gasoline filling stations and motor vehicle storage, repair, or service, except that gasoline pumps shall be permitted as an accessory use subject to conditional use approval by the planning commission pursuant to Article 10, Section 1. 12.142 Wholesaling, warehousing or storage. 12.143 The manufacturing, printing, assembling, converting, altering, finishing, cleaning or any other processing of goods on the premises except as permitted in the C-1 Zone. 12.144 Excessive traffic generating uses, such as theaters, "drive-ins," bowling alleys and other commercial, recreation, restaurants, etc. Recommendation of the Planning Staff: The difference between the existing zoning and the proposed zoning is the allowance for office uses and more intensive service and retail uses. The adjacent properties all allow offices under some category and most as primary uses. The proposed zoning would allow a use that brings professional offices and physical therapy services to the property.

Z-05-04 Lands of Michael Sanchez: Rezoning C-1 to C-1A Planning Commission Recommendation Report to City Council for August 8, 2005 Page 4 of 7 Staff recommends that the zoning for this parcel be changed to C1-A (Limited Commercial Zone) and that a recommendation be forwarded to City Council to approve the request for rezoning of the property to C-1A (Limited Commercial Zone). ADVISORY COMMENTS TO THE APPLICANT: 1) The applicant shall be aware that approval of any rezoning application does not represent Site Development Plan approval. A separate Site Development Plan must be submitted and approved if additional development activities are proposed on the property. 2) The applicant shall be aware that approval of any rezoning application does not represent a Building Permit or other construction activity permit approval. A separate application submission showing all improvements is required before issuance of permits by the City of Dover. 3) Each business entity must maintain a current City of Dover business license in accordance with the permitted uses of the property’s zoning classification and as outlined in Dover Code of Ordinances. Public Comments: The application was represented by the property owner Mr. Michael Sanchez. The following members of the public appeared and spoke in regards to this rezoning application: • Dick Engle, 371 West North Street - Spoke in support of the rezoning for office building use and is encouraged by the opportunity to repair the property. Also noted a number of accidents at a nearby intersection. Agency Comments from DAC Report: • Department of Public Works has no objection to the proposed rezoning. • The City Electric Department has no comments on the rezoning application. • DelDOT has no objection to the rezoning application. Attachments to the Report: • Development Advisory Committee Application Review Commentary (comment sheets) from the following: Department of Public Works City Electric Department Delaware Department of Transportation (DelDOT) Rezoning Plan Map

CITY OF DOVER C I P DEVELOPMENT ADVISORY COMMITTEE T U Y B APPLICATION REVIEW COMMENTARY L O I F C APPLICANT D.A.C. MEETING DATE: June 30, 2005 D W ======================================================================= O O V R E K APPLICATION: Lands of Michael Sanchez at 487 South Queen Street R S FILE#: Z-05-04 REVIEWING AGENCY: City of Dover Public Works CONTACT PERSON: Andrew Riggi, P.E. PHONE#: 736-7025 =========================================================================== THE SUBJECT PROPOSAL HAS BEEN REVIEWED FOR CODE COMPLIANCE, PLAN CONFORMITY AND COMPLETENESS IN ACCORDANCE WITH THIS AGENCY'S AUTHORITY AND AREA OF EXPERTISE. THE FOLLOWING ITEMS HAVE BEEN IDENTIFIED AS ELEMENTS WHICH NEED TO BE ADDRESSED BY THE APPLICANT: CITY AND STATE CODE REQUIREMENTS: 1. Our office has no objection to the proposed rezoning of tax parcel ED-05-077.09-03-03.00-000. RECOMMENDATIONS SUGGESTED AS CONDITIONS OF APPROVAL TO MEET CODE OBJECTIVES: 1. None ADVISORY COMMENTS TO THE APPLICANT: 1. None. IF YOU HAVE ANY QUESTIONS OR NEED TO DISCUSS ANY OF THE ABOVE COMMENTS, PLEASE CALL THE ABOVE CONTACT PERSON AND THE PLANNING DEPARTMENT AS SOON AS POSSIBLE.

DD O E CITY OF DOVER V L DEVELOPMENT ADVISORY COMMITTEE MEETING E E APPLICATION REVIEW COMMENTARY R C T June 30, 2005 - 10:00 A.M. - CAUCUS ROOM R I C APPLICATION: LANDS OF MICHAEL SANCHEZ – 487 SOUTH QUEEN STREET FILE NO.: Z-05-04 REVIEWING AGENCY: CITY OF DOVER ELECTRIC CONTACT PERSON: STEPHEN A. ENSS PHONE #: 736-7091 THE SUBJECT PROPOSAL HAS BEEN REVIEWED FOR CODE COMPLIANCE, PLAN CONFORMITY AND COMPLETENESS IN ACCORDANCE WITH THIS AGENCY'S AUTHORITY AND AREA OF EXPERTISE. THE FOLLOWING ITEMS HAVE BEEN IDENTIFIED AS ELEMENTS WHICH NEED TO BE ADDRESSED BY THE APPLICANT: CITY & STATE CODE REQUIREMENTS: The Electric Department reviewed the plans for rezoning and has no comments. RECOMMENDATIONS SUGGESTED FOR AS CONDITIONS OF APPROVAL TO MEET CODE OBJECTIVES: ADVISORY COMMENTS TO THE APPLICANT: If you should have any questions or need to discuss any of the above comments, please contact Stephen Enss at 736-7091 or contact the Planning Department at 736-7010 as soon as possible.

D CITY OF DOVER E DEVELOPMENT ADVISORY COMMITTEE L D APPLICATION REVIEW COMMENTARY O T D.A.C. MEETING DATE: June 30, 2005 =============================================================== APPLICATION: Lands of Michael Sanchez @ 487 S. Queen Street FILE#: Z-05-04 REVIEWING AGENCY: DelDOT CONTACT PERSON: Richard A. Woodhall PHONE#: 760-2262 =============================================================== THE SUBJECT PROPOSAL HAS BEEN REVIEWED FOR CODE COMPLIANCE, PLAN CONFORMITY AND COMPLETENESS IN ACCORDANCE WITH THIS AGENCY'S AUTHORITY AND AREA OF EXPERTISE. THE FOLLOWING ITEMS HAVE BEEN IDENTIFIED AS ELEMENTS WHICH NEED TO BE ADDRESSED BY THE APPLICANT: CITY & STATE CODE REQUIREMENTS: No objection to the rezoning RECOMMENDATIONS SUGGESTED AS CONDITIONS OF APPROVAL TO MEET CODE OBJECTIVES: ADVISORY COMMENTS TO THE APPLICANT: Provide a site plan with the proposed changes including the type of business and traffic generation diagram. If you have any questions or need to discuss any of the above comments, please call the above contact person and the planning department as soon as possible.

FINAL READING BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 487 SOUTH QUEEN STREET WHEREAS, the City of Dover has enacted a zoning ordinance regulating the use of property within the limits of the City of Dover; and WHEREAS, it is deemed in the best interest of zoning and planning to change the permitted use of property described below from C-1 (Neighborhood Commercial Zone) to C1-A (Limited Commercial Zone) NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. That from and after the passage and approval of this ordinance the Zoning Map and Zoning Ordinance of the City of Dover have been amended by changing the zoning designation from C-1 to C1-A on that property located at 487 South Queen Street, owned by Michael Sanchez. ADOPTED: * S:\ClerksOffice\Rezonings\2005\487 S Queen Street\Ordinance.Final Reading.wpd

SAFETY ADVISORY AND TRANSPORTATION COMMITTEE The Safety Advisory and Transportation Committee Meeting was held on July 26, 2005, at 6:30 p.m. with Chairman Hogan presiding. Mr. Carey was present. Mr. Pitts, Mr. Lakeman, and Mr. Link were absent. Councilman Ruane and Mayor Speed were also present. AGENDA ADDITIONS/DELETIONS Mr. Hogan called the meeting to order noting that there was no quorum; therefore, no official action would be taken by members at this time. Briefing on DelDOT Projects (Gary Laing) Mr. Hogan explained that with the change in membership, he requested a briefing on DelDOT Projects. He indicated that it is his intention to request an update by DelDOT every other month on projects. Mr. Laing, Municipal Liaison for DelDOT, reviewed the on-going DelDOT projects involving the City of Dover, as follows: Mega-TIS on SR1/Route 8 and East Dover Housing Development Projects Mr. Laing advised members that to date there has been no resolution involving the Mega-TIS on SR1/Route 8 and East Dover Housing Development Projects; however, DelDOT has continuing discussions with the developers. He reminded members that the residents of the Edgehill area relayed concerns regarding these projects and assured members that meetings are continuing with the residents in an effort to address their concerns. Also, DelDOT is studying the possibility of split- phased signal timing at US 13 and SR8 to alleviate some of the backups. The left-turn lane for traffic turning south from westbound SR8 has already been lengthened. Crawford Carroll Drive Mr. Laing indicated that although the contractor for the Crawford Carroll Drive Project remains in liquidated damages for failure to complete the project on time, work continues on this project. College Road Corridor Update Due to the lack of funding, Mr. Laing advised members that there will be no work done on the College Road Corridor Update in the foreseeable future; therefore, he suggested that this project be removed from the list for future reports. West Dover Connector Mr. Laing stated that funding has not been received in the FY 2006 budget for the West Dover Connector project. DelDOT continues to work with funds that are remaining from the FY 2005 budget. The project team is examining how they can develop a preferred alternative using funds available, and how costs can be reduced in order to stretch the available funds as much as possible. Mr. Laing advised members that the August 17, 2005 Working Group meeting has been cancelled and will be rescheduled when the project team has worked out a plan. The target date for the Working Group meeting is for late summer/early fall. As a result, the Public Workshop that was tentatively set for late summer/early fall has been delayed. In the meantime, Mr. Laing indicated that DelDOT will continue to present materials to the environmental regulatory agencies to keep them apprised of the status and, hopefully, allow them to indicate how we should proceed with this project.

SAFETY ADVISORY AND TRANSPORTATION COMMITTEE MEETING OF JULY 26, 2005 PAGE 2 Traffic Signal at Greenway Lane and Kenton Road The request for a study to determine if a traffic signal is warranted for the intersection of Greenway Lane and Kenton Road has been submitted; however, Mr. Laing advised members that studies are also backed up and no new projects are being put into the pipeline. Traffic Loop - Delaware State University/Dover Mall/Dover Downs Mr. Laing stated that the expansion planned for Dover Downs pushed hard for the Traffic Loop Project for Delaware State University/Dover Mall/Dover Downs. He reported that since the expansion will not occur in the near future and since there is no funding available for any extensive studies, this project should be removed from the list for future reports. Walker Road Project Construction Mr. Laing noted that since the Walker Road Project is very much near completion, it should be removed from the list for future reports. South Governors Avenue Improvements The South Governors Avenue Improvements project was one of the major projects to be hit by the budget situation for the State. Mr. Laing stated that this is one of many projects which no funding was provided for in the FY 2006 budget. A total of $287M worth of projects have been placed in abeyance due to this budget crunch. Other Dover area projects affected by this include the following: 1) US 113 at S. State Street; 2) West Dover Connector; 3) Loockerman Street/Forrest Avenue Improvements; 4) Delaware Airpark; 5) Dover Curbing; 6) Civil Air Park; and 7) many other Kent County Projects. Mr. Laing stated that Secretary Hayward has sent letters to municipalities, counties, chambers of commerce, etc. regarding the fiscal situation for DelDOT (Attachment #1). He noted that the letter explains how this situation has occurred, explaining that Delaware’s rapid growth has strained the State’s resources. DelDOT has been dealing with new traffic and congestion, and has been challenged to develop new solutions, such as the expansion of roadway, new traffic signals, bridge improvements and replacement, paratransit services, etc. In addition, Mr. Laing advised members that construction costs have escalated at a rate much higher than the consumer price index. Finally, the traditional funding sources, such as gas taxes, tolls and motor vehicle fees, have not grown as quickly as the rest of the State’s sources of funds. The Transportation Trust Fund (TTF) has increased 29% over the past 10 years, while the General Fund for the State grew more than twice as fast - 74%. Mr. Laing advised members that DelDOT has also been affected by the delay in congressional approval of the federal transportation funding legislation. Each year, DelDOT receives more than $125M funding; however, this has not yet occurred this year due to a political struggle over the reauthorization of the federal highway trust fund. Mr. Ruane suggested that City Council respond to the letter submitted by Secretary Hayward dated July 18, 2005, specifically, by going on record acknowledging their financial dilemmas and providing a prioritization list of projects for the City of Dover. It was his feeling that the South

SAFETY ADVISORY AND TRANSPORTATION COMMITTEE MEETING OF JULY 26, 2005 PAGE 3 Governors Avenue Improvements would be the City’s major concern at this time. DelDOT should be encouraged to continue maintenance and repair on those State owned roadways located in the City limits. Mr. Ruane questioned the status of signalization projects. Responding, Mr. Laing advised members that signalization projects have also been delayed. Explaining further, Mr. DePrima was advised that the original bond bill allotment of $2.6M remains. Since this amount is not enough to cover the entire signalization project, DelDOT would fund the remaining costs, estimated at $1M. Considering that the new lights have been ordered for Division Street, it was his understanding that part of the project will be completed. Mr. Laing indicated that he would check on this matter and report back to members next month. Mr. DePrima requested that future updates include the Signalization Project, as well as the Wyoming Mill Road Project, which was the City’s top priority submitted to DelDOT. Responding to Mr. Ruane, Mr. Hogan stated that since there is not a quorum of committee members, the suggestion of submitting a response to Secretary Hayward’s letter dated July 18, 2005 would be presented to Council for consideration. Kent County Transportation Management Team (Chairman Hogan) Mr. Hogan advised members that he recently attended a Kent County Transportation Management Team Meeting and that their primary objective is to develop traffic control plans and pre-determined detour routes in the event of major incidents that occur on the roads of the State of Delaware. Currently, they are focusing on Kent County, specifically detours for SR1. He provided members with the information distributed during the meeting and advised members that there are several agencies involved, including representatives from Police and Fire Departments. Since the information the group is obtaining and the planning is to be very detailed, Mayor Speed stated that this process will take some time to complete. Mr. Hogan stated that he would be attending future meetings and keep members abreast of any action. Radio Paging System (Councilman Carey) Mr. Carey advised members that this past June, while attending the National Fire Protection Association Conference, he participated in several education sessions, including Communication Tools Notifying the Public During Disasters, Natural and Man-Made. Although there are several communication tools already used for emergency situations and civil defense, he stated that a radio paging system would compliment these means. Members were provided a copy of the Power Point Presentation given by the Emergency Management Coordinator of City of La Porte, Texas. Mr. Carey noted that the radio paging system is used as an immediate notification tool and that the receivers would be located in schools, nursing homes, and other public buildings. It was his feeling that the City would benefit from the use of such a system and that there is probably WMD or civil defense funds and grant money that could be used to assist with the costs. He advised members that the paging units costs approximately $600 each, which includes a four (4) year warranty.

SAFETY ADVISORY AND TRANSPORTATION COMMITTEE MEETING OF JULY 26, 2005 PAGE 4 Responding to Mr. Hogan, Mr. DePrima indicated that the Electric Department is determining the costs, locations, and connections for the “Blue Light” emergency notification system. Since this is a strategic task for the Electric Department, members will begin to be provided with updates in the monthly reports. There being no further business, Mr. Hogan declared the meeting adjourned. Meeting Adjourned at 7:55 P.M. Respectfully submitted, Kenneth L. Hogan Chairman KLH/jg S:\ClerksOffice\Agendas&Minutes\Committee-Minutes\2005\07-26-2005-SA&T.wpd Attachments Attachment #1 - Letter from Secretary Hayward, DelDOT, dated July 18, 2005.

CITY OF DOVER FINANCE DEPARTMENT MONTHLY BUDGET REPORT JUNE 2005 PREPARED BY: FINANCE DEPARTMENT PLEASE NOTE – THIS NEWLY FORMATTED REPORT PROVIDES TOP LINE INFORMATION ON THE THREE MAJOR OPERATING FUNDS. IF YOU WOULD LIKE ADDITIONAL INFORMATION PLEASE FEEL FREE TO CONTACT THE FINANCE DEPARTMENT.

Page 2 of 6 City of Dover Finance Department Monthly Report June 2005 Strategic Objectives for Fiscal Year 2004 – 2005 1. Hire Assistant Finance Director in July 2004 – Completed 7/26/04 2. Develop and implement a monthly report to monitor our debt covenants by January 1, 2005 Objective is presented on a separate line item in the Water/Wastewater and Electric Funds beginning in May 2005. 3. Develop and implement a monthly cash flow and working capital reconciliation for each major fund by November 30, 2004. This objective was met as of May 2005. 4. Publish the Comprehensive Annual Financial Report by November 10, 2004. The report has been completed, published and sent to GFOA on December 29, 2004. Major Projects In Process or Completed: 1. Electric Bond Refinancing and IRS negotiations – Completed 2. Pension Fund Asset Manager & Custody Agreement – Completed 3. Pension Actuarial Analysis – Completed 4. Comprehensive Annual Financial Report & Audit – Completed 5. Annual Report from Electric Engineer Consultant on Electric System – Completed 6. Final Arbitrage Rebate Calculations for Electric Bonds – Completed Activity Levels FY04 – YTD FY05 – YTD Payroll: Number of Pay Periods 26 26 Number of Payroll Checks 10,928 10,195 Number of Pension Checks 2,493 2,549 Total Gross Payroll $ 16,710,214 $ 16,981,227 Total Pension Payments $ 3,509,130 $ 3,674,570 Total Overtime $ 596,805 $ 585,572 Accounts Payable: Number of Vouchers 9,386 8,792 Dollar Amount Disbursed $ 23,474,498 $ 21,500,861

Page 3 of 6 City of Dover Finance Department Monthly Report – June, 2005 (100%) General Fund Summary Original Revised Budget Budget YTD Balance % of Budget Receipts Property & Transfer Taxes $ 8,796,454 $ 9,772,918 $ 9,749,866 $ 23,052 99.8% Licenses & Permits 2,255,373 2,108,300 2,251,092 (142,792) 106.8% Fines & Police Revenues 1,012,740 1,169,740 1,164,860 4,880 99.6% Sanitation Revenues 1,112,000 1,077,583 1,081,064 (3,481) 100.3% Library & Recreation Revenues 423,400 434,900 447,948 (13,048) 103.0% Franchise Fees 360,000 360,000 395,821 (35,821) 110.0% Court of Chancery Fees 480,000 520,000 710,380 (190,380) 136.6% Intrafund Services 4,898,863 4,769,878 4,496,619 273,259 94.3% Grants 310,000 206,200 380,365 (174,165) 184.5% Transfers-In from Grants & Utilities Electric Fund 5,463,008 5,463,008 5,463,008 - 100.0% Water/Wastewater Fund 848,016 848,016 848,016 - 100.0% Civil Traffic Penalties Fund 800,000 300,000 258,837 41,163 86.3% Municipal Street Aid Fund 780,000 792,000 792,242 (242) 100.0% Contingency Reserve (2) 250,000 250,000 - 250,000 0.0% Other Miscellaneous Revenues 280,523 260,182 241,949 18,233 93.0% Total $ 28,070,377 $ 28,332,725 $ 28,282,067 $ 50,658 99.8% Expenditures City Clerk & Council $ 514,694 $ 482,144 $ 426,902 $ 55,242 88.5% Mayor, City Manager & Human Resources 865,548 768,710 725,096 43,614 94.3% Police & Police Extra Duty (1) 10,317,366 10,341,405 10,487,495 (146,090) 101.4% Public Works 4,777,137 4,788,415 4,727,862 60,553 98.7% Central Services 2,485,366 2,466,009 2,296,620 169,389 93.1% Planning & Inspections 1,181,642 1,132,404 1,101,303 31,101 97.3% Finance, I/T & Administrative Services (1) 2,596,497 2,532,145 2,443,923 88,222 96.5% Library & Recreation (1) 1,659,336 1,588,992 1,572,466 16,526 99.0% Fire 924,434 925,334 911,731 13,603 98.5% Assessor 251,212 293,249 301,470 (8,221) 102.8% Debt Service 440,372 440,372 440,371 1 100.0% Insurance 574,643 574,643 484,750 89,893 84.4% Retiree’s Health Care 646,627 646,627 590,587 56,040 91.3% Street Lights 460,000 533,000 534,682 (1,682) 100.3% Transfers Out - Parkland/Recreation Fund - 374,970 374,970 - 100.0% Transfers Out - Post Retirement Benefit Fund 600,000 600,000 600,000 - 100.0% Provision for Uncollectibles - 10,000 10,000 - 100.0% Transfer to Workers Compensation Fund - 16,000 16,000 - 100.0% Total $ 28,294,874 $ 28,514,419 $ 28,046,228 $ 468,191 98.4% Excess Receipts/(Expenditures) $ (224,497) $ (181,694) $ 235,839 Working Capital & Reserve Balances Working Capital - Budget Balance (Unaudited) $ 2,254,366 $ 2,594,353 $ 3,010,230 Contingency $ 800,862 Capital Asset Replacement $ 167,558 Parkland/Recreation $ 982,141 Footnotes: (1) Encumbrances included above: a) Recreation$45,600; b) Information Tech $36,650; c) Police $13,201; Total $95,451. (2) Contingency Reserve transfer not completed, as it was not needed.

Page 4 of 6 City of Dover Finance Department Monthly Report – June, 2005 (100%) Water/Wastewater Fund Summary Original Revised Budget Budget YTD Balance % of Budget Revenue Water Fees & Water Tank Leases $ 4,202,602 $ 4,023,068 $ 4,056,180 $ (33,112) 100.8% Wastewater Fees & Impact Fees 3,596,810 3,741,226 3,336,245 404,981 89.2% Kent County Treatment Fees (1) 2,788,875 2,620,407 2,611,290 9,117 99.7% Transfer In from Contingency Reserve (2) 241,680 241,680 60,420 181,260 25.0% Miscellaneous 111,950 195,950 188,044 7,906 96.0% Total $ 10,941,917 $ 10,822,331 $ 10,252,179 $ 570,152 94.7% Expenses Water & Water Treatment Plant $ 1,519,209 $ 1,428,790 $ 1,386,152 $ 42,638 97.0% Wastewater 758,196 712,928 715,554 (2,626) 100.4% Water Meter Reading 57,685 55,081 54,982 99 99.8% Construction & Inspection 495,136 495,773 497,682 (1,909) 100.4% Kent County Treatment Fees (1) 3,600,000 3,300,000 3,480,513 (180,513) 105.5% Retiree’s Health Care 96,330 110,342 108,705 1,637 98.5% Debt Service & Arbitrage 1,620,811 1,129,103 1,201,228 (72,125) 106.4% Intrafund Services 1,025,270 997,653 939,944 57,709 94.2% Transfers Out General Fund 848,016 848,016 848,016 - 100.0% Water/Wastewater I & E Fund 137,151 480,522 480,522 - 100.0% Impact Fee Reserve 147,860 615,508 - 615,508 0.0% Post-Retirement Benefit Fund 100,000 100,000 100,000 - 100.0% Total $ 10,405,664 $ 10,273,716 $ 9,813,298 $ 460,418 95.5% Excess Revenues/(Expenses) $ 536,253 $ 548,615 $ 438,881 $ 109,734 Working Capital & Reserve Balances - Unaudited Working Capital - Budget Balance - Water $ 2,075,714 $ 2,107,546 $ 2,037,639 Working Capital - Budget Balance - WW $ 769,628 $ 1,006,363 $ 1,102,072 Working Capital - Budget Balance - KSA (1) $ (1,364,104) $ (1,411,416) $ (1,597,314) Contingency-Water $ 294,220 Contingency-Wastewater $ 306,435 Capital Asset Replacement $ 2,417 Impact Fee Reserve $ 2,082,539 Bond Coverage Ratio (Covenant 1.20) 1.30 Footnotes: (1) The Kent County Treatment Fee expense continues to exceed the revenues. June's expense has been estimated until we receive the final bill. The above Wastewater Fees includes a 25¢ fee increase in order to reduce the deficit attributed to inflow infiltration. This resulted in a reduction of $357,839 to the deficit budget balance. (2) Contingency Reserve transfer not completed.

Page 5 of 6 City of Dover Finance Department Monthly Report – June, 2005 (100%) Electric Revenue Fund Summary Original Revised Budget Budget YTD Balance % of Budget Revenue Sales to Customers $ 55,633,802 $ 55,905,288 $ 54,843,536 $ 1,061,752 98.1% Purchase Power Adjustment 4,934,544 4,215,909 4,294,232 (78,323) 101.9% Utility Tax 1,182,367 1,071,808 1,032,656 39,152 96.3% Weyandt Hall Rents 170,885 170,885 171,753 (868) 100.5% Miscellaneous Revenues 616,000 616,000 640,939 (24,939) 104.0% Duke Contract Revenue - 1,072,405 1,159,527 (87,122) 0.0% Total $ 62,537,598 $ 63,052,295 $ 62,142,643 $ 909,652 98.6% Expenses Purchased Power $ 40,555,237 $ 40,077,733 $ 39,631,302 $ 446,431 98.9% Electric Operating Divisions 5,720,699 5,798,315 5,483,569 314,746 94.6% Utility Tax 1,182,367 1,182,367 1,032,656 149,711 87.3% Interest on Deposits 15,000 25,000 28,356 (3,356) 113.4% Retirees Health Care 456,656 421,778 424,900 (3,122) 100.7% Accounts Receivable Write-Offs 125,000 125,000 125,000 - 100.0% Inventory Write-Offs 125,000 - - - 0.0% Debt Service & Arbitrage 2,623,372 2,665,174 2,427,721 237,453 91.1% Intrafund Services 3,873,593 3,772,225 3,556,675 215,550 94.3% Transfers Out Improvement & Extension - 2,600,000 2,600,000 - General Fund 5,463,008 5,463,008 5,463,008 - 100.0% Contingency Reserve 22,000 - - - 0.0% Rate Stabilization Reserve 500,000 1,080,405 1,159,527 (79,122) 107.3% Future Capacity Reserve 2,000,000 - - - 0.0% Post-Retirement Benefit Fund 200,000 200,000 200,000 - 100.0% Total $ 62,861,932 $ 63,411,005 $ 62,132,714 $ 1,278,291 98.0% Excess Revenues/(Expenses) $ (324,334) $ (358,710) $ 9,929 $ (368,639) Working Capital & Reserve Balances - Unaudited Working Capital - Budget Balance $ 3,571,714 $ 3,477,669 $ 3,846,308 Contingency Reserve $ 1,123,647 Insurance Reserve $ 218,518 Rate Stabilization Reserve $ 3,775,173 Depreciation Reserve $ 15,319,320 Future Capacity Reserve $ 8,386,381 Bond Coverage Ratio (Covenant 1.25) 1.84 Footnote:

Page 6 of 6 City of Dover Finance Department Monthly Report – June, 2005 (100%) Major CIP Projects to be Completed Original Revised YTD Balance Project # Budget Budget Greenway Grant - Fund 709 Silver Lake Park Bridge Replacement $ 117,000 $ 117,000 $ - $ 117,000 PR0506 Community Transportation - Fund 317, 318, & 319 Hanson House - 317 $ 36,000 $ 36,000 * $ 5,190 $ 30,810 TE0201 Dover High School Ditch - 318 $ 82,757 $ 82,757 $ 11,098 $ 71,659 ST0232 Street & Alleys - 318 $ - $ 184,565 $ 184,565 $ 0 ST0302 FY05 Street Program - 318 $ 1,739,551 $ 1,444,618 $ 546,824 $ 897,794 ST0501 Generic Subdivision Signs - 318 $ 40,000 $ 75,000 $ 34,440 $ 40,560 ST0505 Garrison Oak Technology Park - 319 $ 69,459 $ 294,459 * $ 91,181 $ 203,278 WW0304 General Fund Pear Street Warehouse Renovations $ 50,000 $ 40,000 * $ 34,217 $ 5,783 SP0001 Tennis Court Refurbishing $ 60,000 $ 59,885 * $ 59,885 $ - PR0401 William Street Warehouse Roof Replacement $ 80,000 $ 94,300 * $ 94,300 $ - FM0407 City Hall Roof Replacement $ 80,000 $ 47,390 * $ 47,390 $ - FM0408 Remittance Processing System $ 67,650 $ 67,650 $ - $ 67,650 N/A Pole Barn for William Street Yard $ 80,000 $ 80,000 * $ 77,358 $ 2,642 FM0405 Legislative Management Software $ 64,000 $ 64,000 $ - $ 64,000 N/A White Oak Park Enhancements - Grant Funded $ 60,000 $ 60,000 $ - $ 60,000 PR0504 Police Radio System Upgrade - Grant Funded $ 375,000 $ 375,000 $ - $ 375,000 PD0501 Police Server Upgrade for CAD/RMS - ($170M Grant) $ 200,000 $ 200,000 * $ - $ 200,000 PD0405 Playground Equip Replacement-05 $ 50,000 $ 50,000 $ 45,305 $ 4,695 PR0503 911/Telephone System Upgrade $ 30,000 $ 30,371 $ 30,971 $ (600) PD0502 Concrete Construction Prog 05 $ 40,000 $ 40,000 $ 36,509 $ 3,491 ST0502 Water/Wastewater Fund US 13 Sanitary Sewer Interceptor $ 875,000 $ 1,171,998 * $ 2,457 $ 1,169,541 WW0101 Puncheon Run Motor Control Replacement $ 500,000 $ 578,332 * $ 78,095 $ 500,237 WW0302 Walker Road Pump Station Upgrade $ 158,000 $ 347,371 * $ 371,685 $ (24,314) WW0303 Division Street Water Main $ 300,000 $ 598,340 * $ - $ 598,340 WD0304 West Rustic Lane Sewer Interceptor $ 75,000 $ 75,000 * $ - $ 75,000 WW0401 West Dover Water Loop $ - $ 44,060 * $ 37,220 $ 6,840 WD0402 Elevated Storage Tank Maintenance $ 70,130 $ 70,130 $ 43,750 $ 26,380 WS0504 Wellhead Redevelopment Program & VFD's $ 35,000 $ 145,000 $ 143,840 $ 1,160 WS0505 Cast Iron Main Replacement (Brown Water) $ 50,000 $ 100,000 $ - $ 100,000 WS0502 Miscellaneous Distribution Improvements (Lakeland) $ 50,000 $ 40,449 $ 56,440 $ (15,991) WD0503 Infiltration Removal $ 75,000 $ 75,000 $ 7,350 $ 67,650 WS0501 Puncheon Run Sewer Extension $ 75,000 $ 75,000 $ 28,795 $ 46,205 WW0505 Electric Revenue Fund Cartanza Substation & Lines $ - $ 938,777 * $ 1,737,321 $ (798,544) ES0103 Mayfair 69kv/12kv Transformer $ - $ 176,515 * $ - $ 176,515 ES0105 Division Street Substation $ - $ 494,636 * $ 540,447 $ (45,811) ES0301 VanSant to Mayfair 69kv lines $ 300,000 $ 300,000 * $ 113,257 $ 186,743 EE0407 Delaware State University $ - $ 97,000 * $ 116,774 $ (19,774) EE0414 4kv to 12 kv Upgrades $ 214,000 $ 214,000 $ 55,670 $ 158,330 ED0501 Distribution Upgrades $ 200,000 $ 137,342 $ 31,899 $ 105,443 EU0501 Grandview Trailer Park $ - $ 31,074 $ 30,508 $ 566 EE0508 Capital Green $ - $ 26,000 $ 18,672 $ 7,328 EE0523 White Oak 69kv Rebuild $ 273,900 $ 273,900 $ 62,744 $ 211,156 EE0401 UG Transformers - New Construction $ 170,000 $ 205,500 $ 153,278 $ 52,222 Various UG Conductors - Devices - New Construction $ 250,000 $ 836,452 $ 674,304 $ 162,148 Various Radio Read Meter Replacement Program $ 195,000 $ 195,000 $ 195,524 $ (524) ET0501 Pole Inventory System $ 160,000 $ 138,452 $ 160,000 $ (21,548) EE0503 * Denotes project carried forward from prior fiscal year(s).

ACTION FORM PROCEEDING: Council AGENDA ITEM: 08/08/05 – 7A DEPARTMENT OF ORIGIN: DATE SUBMITTED: 07/27/05 PREPARED BY: Steven R. Sax, Electric Director SUBJECT: Electric Remote Read Meters REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager, Finance Director EXHIBITS: N/A EXPENDITURE REQUIRED: $499,580 Electric and $18,700 Administrative Services – Total $518,280 AMOUNT BUDGETED: $545,000 Electric and $20,000 Administrative Services – Total $565,000 FUNDING SOURCE (Dept./Page in CIP & Budget): 2005/2006 Operating Budget – Electric Transmission & Distribution 487-8200-562-60-46 Page 219 2005/2006 Operating Budget – Electric Meter Reading Division 480-8500-565-20-38 Page 175 E TIMETABLE: Purchase Electric Remote Read Meters upon Council’s approval (August 8, 2005) RECOMMENDED ACTION: Staff recommends negotiating a sole source contract with Itron to purchase the electric remote read meters, four (4) hand-held reading devices, and one (1) docking station (which will cradle the hand devices) from Itron for $518,280. BACKGROUND AND ANALYSIS In 1999, the City of Dover began field testing remote meter reading for electric meters. After three years of testing, several neighborhoods were converted to remote reading in order to evaluate the potential savings in manpower used to read monthly meters. Approximately 30% of the City’s electric customers have been converted to remote reading electric customers. The City has 52 complete residential reading routes converted to remote reading meters which are being read from a van driving through the neighborhoods. This proposal is to purchase 3,959 commercial and residential Itron remote read meters to be changed in this fiscal year by the Electric Department. Additionally, four (4) hand-held reader/programmers and one (1) six-position docking station will be purchased by Administrative Services to support these meters. Itron has over 13 million meters installed across the country using its remote read chip and software. Thirty percent of the U.S. utilitires use some type of Itron meters. Itron leads the industry and has the only product that meets all of Dover’s present and future metering. While other manufacturers can offer their meters with the Itron chip, no manufacturer offers this chip in all their metering products.

The rationale for the above recommendation is as follows: 1. Itron is the leading manufacturer in the country of remote read electric meters with the most units deployed; 2. No Itron meters have failed to work properly during the field testing period or after this test; 3. Itron manufactures all the meters that will be utilized by Dover during tthis conversion; 4. The radio reading trial period has been successful, and no reading errors have occurred; and 5. Itron has agreed to offer the longest warranty in the industry—two full years against any problems with the meters or reading equipment. If a secondary manufacturer was used, the potential for reading, translation or other problems could exist. These issues are difficult to resolve with two manufacturers working against each other’s product. The meter purchase breakdown is as follows: DOVER ELECTRIC METER PROPOSAL 7/05 Meter Type Quanity Price TOTAL 12S 75 $305.00 $22,875.00 5S 10 $420.00 $4,200.00 6S 30 $420.00 $12,600.00 2S 3000 $61.50 $184,500.00 12S 42 $170.00 $7,140.00 2S 40 $155.00 $6,200.00 9S 190 $420.00 $79,800.00 4S 35 $420.00 $14,700.00 16S 325 $305.00 $99,125.00 2S 155 $335.00 $51,925.00 3S 12 $420.00 $5,040.00 1S 20 $155.00 $3,100.00 16S 25 $335.00 $8,375.00 total: 3,959 $499,580.00 Remote 4 $16,800.00 Readers Docking 1 $1,900.00 Station Grand Total $518,280.00

ACTION FORM PROCEEDING: Council AGENDA ITEM NO: 8/8/05 – 7B DEPARTMENT OF ORIGIN: Information Technology Department DATE SUBMITTED: 7/29/05 PREPARED BY: Mark Callan, Information Technology Director SUBJECT: Replace “Green Screen” HTE With NaviLine Version REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager, Finance Director EXHIBITS: N/A EXPENDITURE REQUIRED: $56,940 AMOUNT BUDGETED: $103,080 FUNDING SOURCE (Dept./Page in CIP & Budget): I/T Department Draft Budget page 66 (CIP page) and page 189 Account 110-2200-516-40-25 TIMETABLE: P/O to be processed following City Council approval. RECOMMENDED ACTION: Award contract to HTE, Inc. BACKGROUND AND ANALYSIS Our core software system is a suite of products from HTE, Inc. Several years ago HTE, Inc. began to develop a new Windows based suite, NaviLine. The product we are using is being phased out as new customers can no longer purchase the green screen version. Also HTE, Inc. is increasingly focusing its development efforts on the NaviLine version. NaviLine uses familiar mouse functionality and windowed presentation that make it easier and faster to get the information needed by employees to make everyday business decisions. Attached are two examples that compare HTE green screen and its NaviLine counterpart. The amount budgeted represents the full price received by our I/T Long Range Plan contractor, BDMP Inc. Subsequent negotiations between I/T and HTE, Inc.’s executive management resulted in a significant reduction to the software license portion of this project. The NaviLine purchase is one component of the project. We will bring forth to Council for approval the remaining components in accordance with our Purchasing Policy, i.e. sole vendor, if over $25,000 or over project budget. This is a sole vendor situation as HTE, Inc. is the developer and sole contact for sales of this software suite.

Utility Customer Inquiry – Green Screen The existing HTE green screen presents customer information and uses only function keys (F10 for example) to take you to more screens to view details – no familiar mouse clicking.

Utility Customer Inquiry – NaviLine NaviLine presents customer information in Windows style “boxes” that allow you to more readily find the information on one screen. When you want to see detail, you click it; and it displays in the bottom half of the screen. For example, on the left side bar you have additional options for this account. When you click on any one of the topics, the bottom half of the screen changes to display that information for the same account. Also, clicking on one of the displayed looking glasses provides a pop-up window displaying the detail from that area without disturbing your other information. To improve navigation, Naviline also allows for radio buttons in the blue bar that will take you to other areas with a click of a button. These buttons are user defined so each person can choose on an individual basis which buttons will streamline their use of the NaviLine software.

GMBA Account Balance Inquiry – Green Screen Green Screen presentation of Account Inquiry – views and information are retrieved only with function keys.

GMBA Account Balance Inquiry – NaviLine Again we can see that NaviLine presents information in Windows style “boxes” that allow you to more readily find the information on one screen. Like the customer inquiry, when you want to see detail you click it; and it displays in the bottom half of the screen. For example, on the left side bar you have additional options for this account. When you click on any one of the topics, the bottom half of the screen changes to display that information for the same account. Also, clicking on one of the displayed looking glasses provides a pop-up window displaying the detail from that area without disturbing your other information.

ACTION FORM PROCEEDING: Council AGENDA ITEM: 08/08/05 – 7C DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 07/28/05 PREPARED BY: Scott D. Koenig, P.E., Director of Public Works SUBJECT: Puncheon Run Pumping Station Upgrade – Engineering Services Agreement (Construction)) REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager, Finance Director EXHIBITS: N/A EXPENDITURE REQUIRED: $51,030 AMOUNT BUDGETED: $60,000 FUNDING SOURCE (Dept./Page in CIP & Budget): This project is a carry forward project from FY- 2005 and does not have a CIP page in the FY-2006 draft operating budget. Funding for the services is as outlined in the committee action form that went before the Utility Committee on 5/23/05 (page 188 and 343 of the 2005 annual operating budget). TIMETABLE: Construction phase engineering services will continue until the target project completion date of March/April 2006. RECOMMENDED ACTION: Award engineering services agreement to Whitman, Requardt and Associates in the amount of $51,030 for construction phase services to assist City staff with the inspection and construction management associated with the Puncheon Run Pump Station Upgrade. BACKGROUND AND ANALYSIS On June 13, 2005, City Council awarded a contract in the amount of $951,290 to C&D Contractors, Inc. to construct the Puncheon Run Pump Station Upgrade. Whitman, Requardt & Associates was the design engineer for the project. City staff requested a proposal from Whitman, Requardt & Associates to provide construction phase services to include submittal review, attendance at the pre-construction and monthly progress meetings, final inspection and punch list development, technical clarifications and supplemental construction observation services, if necessary. The lump sum fees are as follows: Item No. 1 Submittal Review $23,050 Item No. 2 Pre-construction & Monthly Progress Meeting Attendance $ 8,050 Item No. 3 Final Inspection & Punch List Development $ 6,690 Item No. 4 Technical Clarifications $13,240 Total -------------------------------- $51,030 Supplemental construction observation services will be provided at a rate of $95 per hour, if necessary.

FINAL READING REVISED RESULTING FROM COUNCIL ACTION ON 7/25/2005 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That Chapter 102 - Taxation, Article III - Realty Transfer Tax, Section 102-71 - Definitions, of the Dover Code be amended by adding the following to the end of Paragraph (a)(3): The first time homebuyer exemption shall apply to the Seller of property that qualifies for the first time buyer exemption but only for property situated in the area from Mary Street to Loockerman Street and Governors Avenue to West Street. This homebuyer’s exemption for the seller is to be effective from the date of adoption to August 1, 2010. Council shall have the right to deny this exemption to any property owner where the sale and purchase appears to be done fraudulently to take advantage of the realty transfer tax exemption ordinance. ADOPTED: * S:\ClerksOffice\Ordinances\2005\Draft Ordinances\Section 102-71-Final Rdg Revised.wpd

FINAL READING BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, Section 102-111 - Purpose, of the Dover Code be amended by adding a new paragraph to read as follows: In the opinion of council of the City of Dover, the abatement of City Real Estate Taxes for certain qualifying homeowners in certain designated areas of the City, thus promotes the public welfare by providing incentives for these homeowners to purchase residences and locate in these areas in the City of Dover. ADOPTED: * S:\ClerksOffice\Ordinances\2005\Draft Ordinances\Section 102-111-Final Rdg.wpd

FINAL READING BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That Chapter 102 - Taxation, Article IV - Abatement of Real Estate Taxes, Section 102-113 - Qualifications, of the Dover Code be amended by adding a new paragraph (d), to read as follows: (d) Any persons purchasing residential real property in which they will reside within the area defined as Mary Street to Loockerman Street and Governors Avenue to West Street during the effective date of this section shall be given tax relief from the payment of real estate taxes in the following manner: first year of ownership, total tax abatement; second year of ownership, seventy- five percent (75%) tax abatement; third year of ownership, fifty percent (50%) tax abatement; fourth year of ownership, twenty-five percent (25%) tax abatement; fifth year of ownership, no tax abatement. Provided however that the homeowner is required to occupy the home as their principal place of residence during the entire time that the taxes are abated and if the property ceases to be their principal place of residence at any time during the four-year period of abatement, then they shall lose their right of abatement and shall be required to pay immediately, all taxes abated up to the time that the home ceases to be their principal residence. In order to obtain the tax abatement, the homeowner must make application by affidavit submitted to the City Clerk showing qualification for the abatement and each year thereafter, submit a similar affidavit showing their continued right to the abatement. If qualification for the abatement ceases within the four-year period of abatement the homeowner is required to notify the City Clerk of the lack of qualification for the abatement and within ninety (90) days from the date the qualification ceases, pay all taxes abated in the past. In order to be eligible for this program, application must be received by the City of Dover prior to August 1, 2010. ADOPTED: * S:\ClerksOffice\Ordinances\2005\Draft Ordinances\Section 102-113-Final Rdg.wpd