Regular Council

REGULAR CITY COUNCIL MEETING The Regular City Council Meeting was held on June 12, 2023, at 6:30 p.m., with Council President Hare presiding. Council members present were Mr. Anderson, Mr. Boggerty, Mr. Neil, Dr. Pillsbury, Mrs. Arndt, Mr. Rocha, Mr. Sudler, and Mr. Lewis. Staff members present were Police Chief Johnson, Mr. Hugg, Mrs. Gray, Mr. Rodriguez, and Ms. Bennett. Mayor Christiansen was present. OPEN FORUM The Open Forum was held at 6:15 p.m., prior to the commencement of the Official Council Meeting. Council President Hare declared the Open Forum in session and reminded those present that Council was not in official session and could not take formal action. There were no members of the public that wished to speak during the Open Forum. INVOCATION The invocation was given by Elder Ellis Louden. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Councilman Boggerty ADOPTION OF AGENDA Mr. Hare asked that item #20, Review of Pension Benefits-Cost of Living Adjustment (COLA), be removed from the agenda at the request of City Manager David S. Hugg, III. Mr. Neil moved for th e adoption of the agenda as amended, seconded by Boggerty, and unanimously carried. ADOPTION OF CONSENT AGENDA All Consent Agenda items are considered routine and non-controversial 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. Mr. Neil moved for the adoption of the consent agenda, seconded by Mr. Sudler, and carried by a unanimous roll call vote. CERTIFICATE OF APPRECIATION – SADIE TRUIETT – JOINT SUBCOMMITTEE TO EVALUATE AMERICAN RESCUE PLAN ACT (ARPA) FUNDING REQUESTS FROM NONPROFITS On behalf of the Mayor and Council, Mayor Christiansen, Councilman Anderson, and Councilman Boggerty presented Ms. Truiett with the Certificate of Appreciation for her work on the Joint Subcommittee to Evaluate American Rescue Plan Act (ARPA) Funding Requests from Nonprofits.

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 2 Ms. Truiett thanked Mayor Christiansen, Members of the Dover City Council, explaining that it was an honor for her to serve on a committee that ensured that nonprofits were being funded adequately and equitably. ADOPTION OF MINUTES – REGULAR COUNCIL MEETING OF MAY 22, 2023 The minutes of the Regular Council Meeting of May 22, 2023, were unanimously approved by motion of Mr. Neil, seconded by Mr. Sudler, and bore the written approval of Mayor Christiansen. COUNCIL COMMITTEE OF THE WHOLE-MAY 23, 2023 The Council Committee of the Whole met on May 23, 2023, at 6:00 p.m. with Council President Hare presiding. Members of Council present were Mr. Anderson, Ms. Arndt, Mr. Boggerty, Mr. Lewis, Mr. Neil, Dr. Pillsbury (via Webex), Mr. Rocha, and Mr. Sudler. Mayor Christiansen was absent. Civilian members present for their Committee meetings were Mr. Contant, and Mr. Shevock (via WebEx) (Legislative, Finance, and Administration). Dr. Short (Safety, Advisory, and Transportation) was absent. ADOPTION OF AGENDA Mr. Neil moved for adoption of the agenda, seconded by Mr. Boggerty and unanimously carried. SAFETY, ADVISORY, AND TRANSPORTATION COMMITTEE The Safety, Advisory, and Transportation Committee met with Chairman Lewis presiding. Adoption of Agenda Mr. Neil moved for adoption of the agenda, seconded by Mr. Boggerty and unanimously carried. Quarterly Briefing on Dover/Kent County Metropolitan Planning Organization (MPO) Projects Ms. Marilyn J. Smith, Executive Director of the Dover/Kent MPO, reviewed the presentation titled, Dover City Council Quarterly Update. Committee action was not required. Mr. Neil provided Ms. Smith and Council with a “Map for MPO Discussion” (Attachment #1). Mr. Neil stated that he was inspired by Councilman Anderson in 2015 when he was first elected, and Mr. Anderson said, “One of the things that we have to do with the MPO is to move up White Oak Road to have that corridor widened and ready for the development of Garrison Place.” Mr. Neil stated that this situation is unique in the fact that they have major events for the city. Mr. Neil stated that this is something that needs to go on the MPO because there will be four apartment

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 3 buildings off to the east, that are going to go up, which will hold 216 apartments and as many as 500 people. Mr. Neil further explained that there may even be a church in that area that has more people, and if they do not have a solution, then the people that live down in that area are now bottled up. Mr. Neil stated that it is doable, and residents get used to it, but as Leipsic Road is becoming a development area, it is going to be intolerable. Mr. Neil stated that with the huge crowds that attend NASCAR, Firefly, and hopefully, The Gift of Lights, that corridor between Leipsic Road, which bends to Persimmon Tree Lane and goes down, is where the danger occurs. At that time, the kids walking in the street on Persimmon Tree Lane get up to the top making it a very dangerous route, especially for ambulances, the fire department, and the police department that must come up during that time. Mr. Neil stated that he has been banging the drum since he knew the apartments were going in, but it did not get to the right person however, now it is at the right person, and even though it may not be an immediate thing, it is something that must be looked at. Responding to Mr. Sudler, Ms. Smith stated that a railroad corridor is land that is adjacent to a railroad line. If they are doing a railroad corridor study like the one that they finished earlier in the year, they look at all the land along the corridor and decide what land is already in use and going to be in that use forever, that land will be excluded from the study. Then they look at the remaining parcels of land that are adjacent to the rail and decide what land is available that is not in perpetuity for something like ag preservation, wetland, or some other conservation easement. Then they look at what land is left available in that corridor, the current intended use, and whether that is an appropriate intended use along the rail or should consideration be given to maybe some other use for that land. Responding to Ms. Arndt, Ms. Smith stated that it was one of the statewide studies that they were not the lead on, but WILMAPCO did finish that statewide truck parking study last year. The study talks about all the places and reasons why trucks are parked on the side of the road. Ms. Smith stated that the MPO did a Truck Parking Amenities Study to support those people who are driving those trucks. Ms. Smith stated that the study examined if they are parking on the road because they live somewhere in the community and they cannot park their truck in their driveway, has the driver met their hours of service limit, and they need to sleep or is the driver supposed to pick up or drop off their load, and they cannot go to that location yet so they must stage somewhere close by. The two existing studies cover all of those circumstances. Ms. Smith also stated that they are trying to figure out where they could potentially build a truck parking facility in Kent County. The question is where they can accommodate the needs of short-term parking, long-term parking, amenities, and safety. The East-West Study is meant to address the movement of commercial

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 4 vehicles from east to west, but Ms. Smith noted that she will pass it on to the consultant to integrate parking. Responding to Mr. Anderson, Ms. Smith stated that southern Delaware does not have an identified corridor for passenger rail. Regarding the IIJA, southern Delaware would be starting at the beginning of the passenger rail process. Ms. Smith stated that they did apply and gathered a coalition of Kent County interested municipalities and some friends in Sussex County and submitted a grant application for the corridor rail identification program. Ms. Smith stated that they are waiting with their fingers crossed to see if the application will be funded. Responding to Mr. Boggerty, Mr. Neil stated that the Speedway is down to one NASCAR event and has had more sales than any of the ten other tracks that they have. They have also stated that the fan experience is far superior to the other tracks that exist in their group. Mr. Neil stated that Firefly took a hiatus this year, and they are going to reexamine whether they should have it. They did not have the acts that attracted the people, like when the Beetle came there were 90,000 people that year. Mr. Neil stated that they are hoping to be starting back next year with an earlier lead to get the acts in and switch back to the summer when the younger people are off. There is no indication from the speedway whose land it is that they will not be back as they made a significant investment in that property. There is still anticipation that Firefly will be coming back, hopefully in the summer, and with bigger crowds which will help the economy. Mr. Neil further stated that The Gift of Lights came as a result of this event being at other tracks that are owned by this major company that owns the speedway. Even though it was slow this year, except for a few times, when there were big crowds and backups, the anticipation is that they are going to be back. Mr. Neil stated that everyone that he has spoken to was very favorable and had gone through and enjoyed the experience. Responding to Mr. Rocha, Ms. Smith stated that she is not aware of any conversations about the possibility of raising the train tracks up to a train trestle level. Ms. Smith stated that she could check into that and let Mr. Rocha know. Responding to Mr. Sudler, Ms. Smith stated that because WILMAPCO was the lead agency, they subscribed to a couple of data-gathering services. There is some heat source data, and there is some GPS data however, she cannot tell where all the data comes from because they were not the subscriber. Ms. Smith stated that there are a couple of companies like StreetLight, and Reliant, but that they do not go out and count trucks. Ms. Smith stated that they do some on-the-ground fieldwork, but the large data sets are purchased from vendors who collect that data. Responding to Mr. Sudler, Ms. Smith stated that in the statewide truck parking study, the study does something called clustering, and it will cluster from those data

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 5 sources. It will cluster where the most frequency is during a period of time. It does not show, for example, a truck driver who lives in a neighborhood and does not have a place to park, so he parks a mile over at the Royal Farms and has someone pick him up. However, generally speaking, they know where the clusters are, how large the clusters are, and how frequently they are happening. Responding to Mr. Anderson, Ms. Smith stated that the items on the list are things that the MPO is responsible for and that they are on the MPO website under resources and understudies. The statewide truck parking study was done by WILMAPCO so that it can be found on their website. Mr. Lewis moved for adjournment of the Safety Advisory and Transportation Committee meeting, hearing no objection, the meeting adjourned at 6:31 p.m. LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE The Legislative, Finance, and Administration Committee met with Chairman Anderson presiding. Adoption of Agenda Mr. Neil moved for adoption of the agenda, seconded by Ms. Arndt and unanimously carried. Dover Human Relations Commission Update (Alan Gaddis, Chair) Mr. Alan Gaddis, Chair of the Human Relations Commission reviewed the update titled, Report of the Dover Human Relations Commission (Attachment #2). Committee action was not required. Responding to Mr. Rocha, Mr. Gaddis stated that council has to tell him who is actually on the commission because of the relationship between Mr. Gaddis’s wife and Mrs. Herbert, she resigned. Mr. Gaddis stated that he did not know about Reverend Paige. Mr. Gaddis also stated that Wanda Mullen had previously stated that she was not sure she would be able to continue. Mr. Hare stated that he would like to see what council thinks, but maybe it would be helpful if Mr. Gaddis had a council liaison that could stay in touch with him, give him some guidance, and assist him. The liaison could maybe even attend meetings and keep Mr. Gaddis updated. Mr. Neil moved to recommend creating an appointment for the council president to appoint a liaison to the Human Relations Commission and make it a formal continuing liaison appointment by the council president. The motion was seconded by Mr. Sudler and unanimously carried. By consent agenda, Mr. Neil moved for approval of the Committee's recommendation, seconded by Mr. Sudler and carried by a unanimous roll call vote.

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 6 Mr. Lewis stated that he started off on the Dover Human Relations Commission when he got involved in public service. Mr. Lewis stated that he had seen it put on the shelf for a while. He would like to see it come back out and be brought out into the limelight because he thinks that it is a very important entity of the city. Mr. Hare stated that with it being passed, he would like to suggest Mr. Sudler for the Dover Human Relations Commission council liaison. Discussion – Fiscal Year 2023 Audit Program (Lori Peddicord, Controller/Treasurer) Ms. Lori Peddicord, Controller/Treasurer, reviewed the background and analysis regarding the Fiscal Year 2023 Audit Program. Staff recommended acceptance of the Audit Program. Mr. Hare moved to recommend acceptance of the Audit Program, as recommended by staff. The motion was seconded by Mr. Contant and unanimously carried. By consent agenda, Mr. Neil moved for approval of the Committee's recommendation, seconded by Mr. Boggerty and carried by a unanimous roll call vote. Review of the Fiscal Year 2022/2023 Annual Budget Amendments (Dave Hugg, City Manager) Ms. Lori Peddicord, Controller/Treasurer, reviewed the background and analysis regarding the Fiscal Year 2022/2023 Annual Budget Amendments. Ms. Peddicord shared a General Fund Update (Attachment #3). Committee action was not required. Mr. Hugg stated that on top of what Ms. Peddicord mentioned, he wanted to repeat that on the general fund side, the revenues simply do not cover anywhere near the expenditures. Mr. Hugg stated in some cases they are not enough to cover the police department, let alone other operations. Mr. Hugg stated that a way to balance the process must be found rather than hoping the numbers add up. Mr. Hugg stated that by looking at the original request for the fiscal year 2024 it is not much different than the original approved budget for this year, and below what is projected as this year’s budget will end up with. Mr. Hugg also stated that this is before the sledgehammer and chisel have been taken to the budget, so that number will go down even more. Mr. Hugg stated that every department has been through a rigorous process of scrubbing their budgets for both this year and next year. Mr. Hugg stated that looking at the second page, and using these numbers, there will be about a $15 million dollar deficit in the general fund. Mr. Hugg stated, as Ms. Peddicord said, that number excludes the transfers, and any other things that offset that, but that is the starting number. Mr. Hugg stated that it is not the best

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 7 place to be starting, but as a matter of strategy, everyone will need to sit down and figure out not just what is going to be done in 2024 but how will the city get to 2025, 2026, and 2027, so that things are not being juggled as they are found. Mr. Anderson stated that the enterprise fund transfers are designed to be a general revenue piece, and they are an important part of tax fairness. One of the things that may need to be looked at with state mandates and with stormwater maintenance, is a way to pull that out of the general fund budget as well. There will be a general fund contribution to that fund to give credit to people who pay property taxes against their stormwater management fee. Responding to Mr. Contant, Mr. Hugg stated that currently, on the budget, they are sticking with the $10 million dollars. Mr. Hugg stated that has been the tradition for the last two or three years. Mr. Hugg stated that there was one year when the city transferred $11 million, but as of today, the city is anticipating a $10-million-dollar transfer. Responding to Mr. Contant, Ms. Peddicord stated that there was about $16 to $20 million that was brought from the PPA and then about $10 million budgeted transfer from the rate stabilization. Based on the vote of council to stop that PPA, some adjustments still need to be made. Ms. Peddicord also stated that regarding the rate study, which was delayed because of last-minute direction for a salary increase, et cetera, that all comes into play with preparing the rate study for the next five years. Responding to Mr. Contant, Ms. Peddicord stated that she cannot say that the rate stabilization reserve has a deficit. Ms. Peddicord stated that there is a minimum balance that the city is supposed to maintain in there of about 10% of purchase power costs. Ms. Peddicord stated that the city was counting on some transfers in the future from the future capacity reserve fund for the Garrison Oak substation build. Ms. Peddicord stated that this has been slowly taking off and those items will have to be talked about next week along with the rate study. Ms. Peddicord also stated that the electric fund has the reserves and that they are there to serve a good purpose, rate stabilization particularly, because last year the purchase power cost was through the roof. Responding to Mr. Anderson, Mr. Contant stated that pretty much what he wanted to hear is that there is a cushion or a buffer that can be used going forward, and things may fluctuate again. If the maximum has been met, then they do not need to look at adding more to this budget to replenish that. Mr. Contant stated that he was just trying to figure out what other streams of revenue the city may have and what other costs there may be. Responding to Mr. Hare, Ms. Peddicord stated that the maximum and minimum are based on a policy that council has established, so her guess is yes. Responding to Mr. Hare, Ms. Peddicord stated that, that is where it is established, and she can bring that language next week or send it via email. It is to allow for a cushion for unexpected purchase power costs. Ms. Peddicord stated that it is obvious that the city does not want to take it below the minimum. The city also

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 8 does not anticipate keeping the maximum or above the maximum, which is why in prior years a PPA credit has been given. Ms. Peddicord stated that it is not to sit there to serve other purposes, it is there to serve the purpose of the fluctuation and the power cost. Ms. Peddicord stated that if the maximum were to be raised more money would be going into the reserve and it is not serving the purpose when the money is needed for the fluctuation in the budget. Responding to Mr. Neil, Mr. Hugg stated that as those properties sell, that revenue will go down because they are no longer being rented to someone. Mr. Hugg also stated that on the flip side of that, the city will not be mowing the grass as often out there so some of the expenses will be dropping. Responding to Mr. Neil, Mr. Hugg stated that there will be a settlement on lot two around July 11, 2023. There should be another settlement in the last part of July, and then one is pending. There will be at least three lot sales that should happen in the early coming fiscal year. One settlement was delayed from late June to early July so that the money would be in the fiscal year 2024. Mr. Hugg stated that three are ready for settlement, three are in agreements of sale, and a couple are pending. Responding to Mr. Neil, Mr. Hugg stated that the money from the sale is not reflected in the report. Mr. Hugg also stated that technically the money from the sale is a return on the city’s investment so it can be used for a variety of purposes. Responding to Mr. Contant, Ms. Peddicord stated that other than those reserve balances being communicated to the rate study group or the engineering report which has been done as a requirement of the bond covenants on the electric plant, which has been taken into consideration, but that is something that could be looked at. Ms. Peddicord stated that she would not mind doing that, and it could be after the budget is approved. Ms. Peddicord stated that what is sitting in the reserves is meeting the minimum requirement per the policy. The future capacity and some of the balances should have probably been brought into those, they have a significant amount of money sitting for future growth. Ms. Peddicord stated that the plan is to use it for the substation. Ms. Peddicord stated that the policy also requires that at the end of the build, the fund must be replenished within seven years, and there are probably a couple of others that work the same way. The depreciation reserve is used rather than financing things to just pay as they go. Ms. Peddicord also stated that the city utilizes that and then replenishes it every year, but it would not hurt to look at the contingency in a couple of other smaller ones just to make sure that they make sense with replacement costs for emergencies, insurance purposes, et cetera. Mr. Anderson moved for adjournment of the Legislative, Finance, and Administration Committee meeting, hearing no objection, the meeting adjourned at 7:07 p.m.

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 9 Mr. Hare moved for adjournment of the Council Committee of the Whole meeting, hearing no objection, the meeting adjourned at 7:07 p.m. By consent agenda, Mr. Neil moved for acceptance of the Council Committee of the Whole Report, seconded by Mr. Sudler and carried by a unanimous roll call vote. MONTHLY REPORTS – APRIL 2023 By motion of Mr. Neil, seconded by Mr. Sudler, the following monthly reports were accepted by consent agenda: City Assessor’s Report City Council Community Enhancement Fund Report City Manager’s Report City Planner’s Report Controller/Treasurer’s Budget Report Fire Chief’s Report Police Chief’s Report APPOINTMENTS RECOMMENDED BY THE COUNCIL PRESIDENT By consent agenda, Mr. Neil moved for approval of the following appointments, seconded by Mr. Sudler, and carried for a unanimous roll call vote. ECONOMIC DEVELOPMENT COMMITTEE- ONE-YEAR TERM TO EXPIRE MAY 13, 2024 Kim I. Adams – Minority Voting Member Clayton E. Hammond – Minority Voting Member COMMITTEE CIVILIAN MEMBERS – ONE-YEAR TERM TO EXPIRE MAY 13, 2024 Utility Committee – Michael S. Pugh APPOINTMENTS RECOMMENDED BY THE COUNCIL COMMITTEE CHAIRS By consent agenda, Mr. Neil moved for approval of the following appointments, seconded by Mr. Sudler, and carried for a unanimous roll call vote. COMMITTEE CIVILIAN MEMBERS – ONE-YEAR TERM TO EXPIRE MAY 13, 2024 Safety, Advisory, and Transportation Committee – Vonderlear E. Smack SETTING OF ELECTRIC, WATER, AND WASTEWATER RATES AND TARIFFS David S. Hugg, III, City Manager, explained that things are being done out of sequence this year due to the Electric Rate Study not being available to be presented until the Council Committee of the Whole Meeting of June 13, 2023. Mr. Hugg stated that every five years or so, they go through and look at the electric rates and reset them based on the history of the last five years and all the various factors that are considered. He explained that sometimes it is done more frequently if conditions substantially change, but at this

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 10 point, they believe that resetting the electric rates are in order. He further explained that is why they hired the consultant who will speak about the rate study. Mr. Hugg explained that the rate study and the rates that are selected should satisfy or cover all the costs of operations, maintenance, etc., including the requirements for reserves, energy, taxes, transfers, and pass-through. Mr. Hugg further explained that when you do an electric rate study, it is a comprehensive look at the cost of the business operation, and the rates reflect the need to cover those costs to be an efficient manager of the utility. He stated that the second caveat is that it is important to allocate the costs, between the various user groups fairly. Mr. Hugg explained that there are large users of energy, there are residential users, and also small and large commercial users. Mr. Hugg stated that the cost of providing energy services to them is not the same in every case, so one of the caveats of the rate study is to provide some degree of fairness so that one group is not carrying the burden for the other groups. Mr. Hugg stated that we want to be competitive in the universe of utility suppliers; however, it doesn’t mean that we will be the lowest rates, and we certainly do not want to be the highest subject to some policy decisions that may be made about economic development, or social equity. Mr. Hugg explained that there are reasons occasionally that instead of trying to be fair to every user group, one user group may benefit more or less than another one, simply because we may want a rate that encourages certain kinds of users to be here or not. Mr. Hugg explained that we have a variety of tools available to us as part of our operations and as part of the rate structure. He further explained that we have the Purchase Power Adjustment, which is a tool for leveling out the fluctuations that happen during the year, so you do not have spikes in costs and revenues, which can be either a credit or debit. The city of Dover, for several years, issued a credit because our rates were generating excess revenues. Mr. Hugg explained that in the first nine months of the fiscal year 2023, we had a debit, so we needed to make up for the shortfall, however, in setting the rates, you generally start with a PPCA of zero. He stated that then you can adjust and keep things relatively constant during the course of a year. Mr. Hugg stated that it is important to develop a minimum billing rate, and whether you use electricity or not, there is a cost to the electric utility for having a line coming to and a meter hanging on the house. There is an obligation to make sure that whatever level of service is needed is provided. Mr. Hugg further explained that in the rate structure, there are minimum customer charges, which are the cost of having the utility available when you need it. Mr. Hugg explained that the rate study also includes the need for any specialized equipment, characteristics of usage, demand characteristics, energy requirements, and time of service. Mr. Hugg stated that for large users, it is important to have provisions in the rate structure that deal with whatever the character of use is for that industry or business. He further stated that certain businesses have a very high usage at certain periods, and they may not at other periods, so it is necessary to capture those variations. Mr. Hugg explained that part of the operation or any set-aside reserves should reflect the difference between providing service inside the city of Dover, and in those cases where we provide services outside the city so that people outside the city are not getting the benefit of services that we provide to our citizens who are paying taxes. Mr. Anderson stated that he has a bit of concern after looking over the various rates, in particular,

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 11 the small commercial rates. He asked that the rate study consultant come prepared to break down why we are not able to spread out the commercial rates so that small businesses don’t get hit with a 30% increase. Mr. Anderson explained he would like to hear justification or alternatives for spreading that out through commercial and transmission rates. Mr. Sudler stated that he agreed with Mr. Anderson that he would also be interested in seeing how we can break down the 30% increase on small commercial rates. Responding to Mr. Sudler, Mr. Waddell, Electric Director, stated that Scott Burnham, Partner and Business Development Lead, NewGen Strategies, and Solutions, will be presenting the rate study, and he will look at each classification, also explaining why and what the justification is for the movement. Responding to Mr. Sudler, Mr. Waddell explained that the cost is for the recovery of the transformer replacement, reconductoring, capital projects, labor, materials, and whatever is needed to operate the electric system. Responding to Mr. Sudler, Mr. Waddell explained that the rate increase is not a tax. Responding to Mr. Rocha, Mr. Waddell stated that when electricity is transmitted through the city, it is run in three-phase and single-phase. Mr. Waddell further explained that three-phase is the backbone, and once it splits off from the three-phase transmission loop or a primary distribution loop, it is going to split off into an A, B, or C phase off the main line and service individual customers. Mr. Waddell stated that in a residence, you have a single phase, meaning that you only operate off one phase of the three-phase. Mr. Waddell further stated that in commercial service, you need three-phase to operate if you are running motors, pumps, etc. Responding to Mr. Rocha, Mr. Waddell explained that under a small commercial service classification, you are one or the other unless they have multiple services. Mr. Waddell further explained that once they hit 3,500 Kilowatt-hours per month of consumption, that is when they move up the commercial bracket. Mr. Waddell stated that the classification could technically be residential, but per the tariff, if you go above 3,500, it changes the classification. He further explained that in some other communities and with some other utilities, they charge demand charges for residential customers, which Dover does not. Responding to Mr. Neil, Mr. Hugg explained that to treat all the classifications fairly, and in the case of small commercial, their cost greatly exceeded the return from that investment. Having said that, the city has the ability to pick out a classification or a couple of classifications and keep them due to their vulnerability to the local economy and make a policy decision to raise or lower the contribution. Responding to Mr. Neil, Mr. Waddell explained that there was an economic development rate, and in addition to that, they were able to keep a company that expanded from Maryland. He further explained that it is a tool that has been used, and it is a tool that can be used to bring a company that would otherwise not come here, or it could be used to keep them from leaving Dover. Responding to Mr. Sudler, Mr. Waddell stated that the average usage for residential is

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 12 approximately 892 KWH per month, and the highest usage he has seen is between 5000-6000. Mr. Waddell stated that the national average for residential is around 860-870; however, he took all the residential sales for the last calendar year and then divided that by the number of meters, and it came out to 892, and the lowest was 500. Responding to Mr. Waddell stated that he didn’t have the average usage for commercial service with him, he would send them to Mr. Sudler. Mr. Anderson stated that due to the rate study not being completed before now and the public hearing being postponed until June 26, 2023, people will only have four days before July 1, 2023. He asked what would need to be done to have the rate increase take place on August 1, 2023, and how that would impact the budget. Mr. Rocha agreed with Mr. Anderson that it should be deferred to August 1, 2023. Mr. Waddell stated that the rates take effect with billing dates on or after July 1, 2023, so there will not be a June component. He explained that he will confirm this information during the Electric Rate Presentation. Responding to Mr. Neil, Mayor Christiansen confirmed that he and Mr. Hare negotiated that special electric rate for 24 months to draw the business from Maryland. Responding to Mr. Rocha, Mr. Waddell stated that the NACE contract is until 2027. Mr. Neil stated that there is going to be a psychological effect no matter when the rate increase goes into effect. He further stated that the surcharge for the additional cost of the power was up 3 cents on each kilowatt. Mr. Neil stated that there are two increases the residential rate is going to be up 2.6 cents, and the monthly charge is $1.04. Mr. Neil explained that the only advantage is that if the city brings in more money, the rate can be dropped. He further explained that it was for a long period when there were favorable rates. Mr. Neil explained that the City of Dover is trying to make sure that it is fluid, and that the cost of the operation is covered, so it is a give-and-take if necessary. Mr. Neil explained that he is not concerned if it has to be delayed but warned everyone to be prepared 2.6 cents is not far off from 3 cents. SETTING OF PUBLIC HEARING - ELECTRIC FUND BUDGET A public hearing on the Electric Revenue Fund Budget is required for compliance with the City of Dover Electric Revenue Bonds Resolution prior to the adoption of the budget. Staff recommended that the public hearing be set for June 26, 2023, at 6:30 p.m. Mr. Neil moved to set a public hearing for June 26, 2023, at 6:30 p.m. for the 2023/2024 City of Dover Electric Fund Budget, seconded by Ms. Arndt and unanimously carried. FIRST READING – PROPOSED ORDINANCE #2023-05 Council President Hare reminded the public that copies of the proposed ordinance were available at the entrance of the Council Chambers, on the City's website at www.cityofdover.com under "Government," or by contacting the City Clerk's Office at (302) 736-7008 or cityclerk@dover.de.us. Final action by Council on the proposed ordinance will take place during the Council Meeting on

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 13 June 26, 2023. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the proposed Ordinance as read by the City Clerk, by title only, as follows: ORDINANCE #2023-05 – Fiscal Year 2023/2024 City of Dover Budget Ordinance CITY MANAGER'S ANNOUNCEMENT City Manager Hugg did not have any announcements. MAYOR'S ANNOUNCEMENTS Mayor Christiansen announced that on Saturday, the 17th of June, the City of Dover will host the annual Comic Con event on Legislative Mall. He also reminded everyone to please remember our fathers on Father’s Day. Mayor Christiansen stated that on Monday, June 19th, the 1St Annual Juneteenth celebration will take place on Legislative Mall. Mayor Christiansen stated that on June 24, 2023, the 32nd Annual African American Festival “Positively Dover” will be sponsored by the Inner City Cultural League and held on Legislative Mall, headed up by our friend and former City of Dover Councilman Ruben Salters. Mayor Christiansen also reminded everyone about the City of Dover’s Family Fourth of July celebration which will start with a VFW parade at 6:00 p.m., followed by a celebrity pie eating contest featuring Delaware’s official State dessert, peach pie, sponsored by Fifer’s Orchards. Mayor Christiansen further stated that immediately following, in front of Legislative Hall, will be a hot dog eating contest sponsored by Coney Island Grill, which is right downtown, and then following that will be a spectacular fireworks display, so bring your blanket and picnic basket. COUNCIL MEMBER'S ANNOUNCEMENTS Mr. Boggerty announced that he was pleased to be named to the Economic Development Committee with Councilman Anderson. Mr. Boggerty stated that he would like to make sure that he is investing back into the local businesses, so on Friday, June 23, 2023, at 5:00 p.m., he will be hosting a night out at The Scoop on Loockerman at 305 West Loockerman Street. Mr. Boggerty will buy the first 25 single-dip ice creams for community members who are not part of the City Council. Mr. Boggerty will also be providing the entertainment that will be playing outside at the night out. Mr. Lewis announced that he had the opportunity to attend the Pride Festival on Saturday, June 10, 2023, and thought it was well received by members of the community and also had residents from other communities and states attend. Mr. Lewis wished the LGBTQIA community a Happy Pride Month. Mr. Lewis also thanked Code Enforcement staff for the City of Dover for addressing various issues in the Stoney Creek development. Mr. Lewis stated that there are a lot of issues and concerns going on right now in that development, and they are doing a phenomenal job. Mr. Anderson announced that The Scoop on Loockerman, 305 West Loockerman Street, is a great place. Mr. Anderson stated that it is a great partnership with Neighborhood Good Partners, and not only that, but the ice cream is good and reasonably priced. Mr. Anderson further stated that he was happy to drop by Friday with Councilman Boggerty. Mr. Anderson encouraged everyone to support all of the businesses throughout the City of Dover and to check the calendars, particularly Dover Happenings and Kent County Tourism, because a lot is happening in the city this summer.

CITY COUNCIL MEETING OF JUNE 12, 2023 PAGE 14 Mr. Hare announced that he hoped everyone enjoys the bouncy house at the Juneteenth Festival because he committed to paying for it. Mr. Hare also announced that he will also donate 25 single- dip ice creams for community members at 5:00 p.m. on Friday, June 23, 2023, at The Scoop on Loockerman. Mr. Hare noted that he had a water meter break at his home, and the Public Works Department replaced the meter very quickly and professionally. Mr. Hare thanked Lee Ridgeway and Todd Holcomb of the Public Works Department for their service. Mr. Hare moved for adjournment of the Regular Council meeting, hearing no objection, the meeting adjourned at 7:25 p.m. The meeting was adjourned at 7:25 p.m. ANDRIA BENNETT CITY CLERK All ordinances, resolutions, motions, and orders adopted by City Council during their Regular Meeting of June 12, 2023, are hereby approved. ROBIN R. CHRISTIANSEN MAYOR /AB