Council Retreat Minutes and Exhibits 1 - 4

COUNCIL RETREAT The Council Retreat was held on January 6, 2017 at 9:00 a.m. with Council President Slavin presiding (departed at 1:32 p.m., returned at 1:39 p.m.). Council members present were Mr. Anderson (arrived at 9:07 a.m.), Mr. Sudler, Mr. Neil, Mr. Cole, Mr. Hosfelt, Mr. Hare, and Mr. Hutchison. Mr. Lewis was absent. Council staff members present were Mrs. Mitchell, Mr. Koenig, Mrs. Townshend, Mrs. Bundek, and Mrs. McDowell. Mayor Christiansen was also present (departed at 10:56 a.m. and returned at 2:01 p.m.). Mr. Hutchison moved for approval of the agenda, seconded by Mr. Neil and unanimously carried. INTRODUCTION/WARM-UP Mr. Larry Passwaters, Federal Mediation and Conciliation Services (FMCS), advised members that he met Mr. Cole approximately a month-and-a half ago, and Mr. Cole asked if he would help facilitate the Dover City Council Retreat. Mr. Passwaters explained that, although he is typically involved when facilitating, his current role was to keep attendees on track and to serve as a timekeeper. Mr. Slavin thanked Mr. Passwaters for facilitating the Retreat gratis as part of his professional commitment. He noted that the Retreat’s format would be different from the typical, formal Council Committee of the Whole or Council meeting format. Mr. Slavin stated that Robert’s Rules of Order would still apply; however, there would be immediate allowance for open discussion. He encouraged members to abide by rules of decency even though the setting was more informal. Mr. Slavin stated that the idea was to strip away the day-to-day things that members deal with at their usual meetings and give themselves room to look out at the horizon and down the calendar to see what strategic things they would like to see accomplished in the City, in their own districts, and in other districts. He advised that it was not intended to create any actionable items for Council that day and he did not anticipate taking any motions. Mr. Slavin stated his belief that members could not take action and the meeting would be for idea gathering and distillation. He explained that ideas that are accepted would be run through the normal course of Council’s work and voted upon by Council. Mr. Passwaters informed members that FMCS was established in 1947, two (2) years after World War II. He explained that there were more strikes and lock-outs in this country in the two-year period after World War II than in any five- or 10- ten year period prior or since. Mr. Passwaters indicated that there had been a need for someone to come and mediate these disputes, and FMCS did this for most of their history until 1963, when President Kennedy signed into law the right of federal employees to organize. He stated that FMCS then branched out into doing things with the federal government and the private and public sectors, and their role was to help fix disputes that could not be fixed. Mr. Passwaters advised that theirs was a free service, provided that there is a union and a management group involved, and they receive appropriations from the government. He indicated that he would be glad to come and help with issues in the City that cost a lot of money before they become arbitratable, such as union issues, disputes that cannot be fixed, or grievances. Mr. Passwaters explained that FMCS is neutral and estimated that an agreement is reached 90% of the time when they are involved. He explained that he could help with contract negotiations and

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 2 disputes between management; however, there would be a charge for assisting with issues between the union and its members or management and its members. Mr. Passwaters informed members that the minimum charge is approximately $800 per day and he estimated that the City was getting approximately $880 in free service that day. He noted that he enjoys his job, meeting people like those attending, and helping to fix things. Mr. Passwaters estimated that 80% of federal mediators become arbitrators when they retire, noting that his service is free before his retirement but he would charge for arbitration after he retires. At the request of Mr. Passwaters, those in attendance introduced themselves and stated their role in the City. Mr. Passwaters stated that he has meetings every day, sometimes two (2) or three (3) per day, and had 299 meetings in the last calendar year. He advised that most of them averaged approximately six (6) hours per day, and 80% of them involved collective bargaining, which can be intense. Mr. Passwaters insisted that everyone treat each other with decency and respect, noting that if the Retreat degraded into something that he was not comfortable with, he would respectfully leave. Mr. Passwaters led the group in completing an exercise demonstrating the importance of thinking outside the box and that nothing is impossible without qualifications; however, when qualifications are imposed, some things are not possible. He explained that what individuals perceive to be real is real to them and that one should not challenge anyone’s perceptions or contradict what someone believes to be true. Mr. Passwaters explained that if people meet in the middle at every juncture in an interaction, things get done. He cautioned those present that meeting in the middle is not always exactly 50/50, noting that sometimes one must give 70% or 30%. Mr. Neil stated that he did not view this as an adversarial procedure and that one must look at an issue from their own adversarial position to find common ground. He noted that they all have a stake in representing and taking care of the citizens of the City. Responding, Mr. Passwaters agreed that the process should not be adversarial and it was not his intent to say so, noting that everyone had the interest of the City of Dover at heart. He advised that whenever there is something that must be agreed on, parties can give and take a little, just as in any relationship. He noted that ignoring the other party in a relationship risks the relationship, attendees were in relationships with each other, and ignoring these relationships would be at their peril. OVERVIEW - CITY MANAGER/DEPARTMENTS Mr. Scott Koenig, City Manager, advised members that the City of Dover is a $135M - $140M public corporation with a wide range of challenges and issues, from running multiple utility companies to downtown development, economic development, crime, and other social issues. He indicated that the City had approximately 360 employees at the last budget authorization, and 85% or more were unionized. Mr. Koenig stated that the workforce was covered by four (4) different unions and most of those present were deeply involved in this on a day-to-day basis. Mr. Koenig advised that, as an organization, the City has difficulty moving quickly on issues and there was a need to plan issues out and move in a progressive, coherent, knowledgeable direction strategically and with thought. He explained that it is very difficult for the City to shift direction quickly because of its size, budgets, etc. Mr. Koenig indicated that there had been a lot of discussion

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 3 about finances in years past; however, discussions about some of the larger policy issues that the City was challenged with on a day-by-day basis had fallen by the wayside. He stated that he hoped to get clear feelings or direction on a number of these issues from the Retreat. Mr. Koenig reminded members that things are much better in the City when there is growth than when there is not, and the City’s budget is very much tied to growth, for example, new housing starts, property transfers, and commercial building starts. He pointed out that managing the City’s budget had been much easier over the last two-and-a-half decades when construction was going on in the private and public sectors, rather than when the construction market was contracting. Mr. Koenig stated that a number of things were happening in the City in regard to both the private sector and to transportation that were good indicators from a revenue standpoint that the budget was doing reasonably well. He stated that the City’s capital plan showed that infrastructure planning and redevelopment were big issues; however, additional investment needed to happen, such as in the street program. Mr. Koenig advised that staff was working internally on presentations before Council in the spring regarding what they think needs to be done. Mr. Koenig informed members that staff had been working on the electric utility and the changeover that had happened in the last couple of years in its total management. He estimated that approximately 1/4 to 1/3 of the employees of the electric utility could retire, noting that bringing people in, training them, and getting them up to speed takes time, thought, and planning. Mr. Koenig stated that staff was in the process of revamping the entire electric utility management structure and Mr. Harry Maloney, Electric Director, had been brought in from the outside to provide a snapshot of what the City could become. He stated that electric utility is a challenging area for the City, noting that it is a very dynamic industry with a lot of money involved. Mr. Koenig advised that, in his opinion, the City had been fortunate to own the electric utility because the City has the ability to control affordability from an electric rate standpoint. He stated that the water and sewer utilities were likewise big programs with lots of money involved, and the City had the good fortune to own them because it can control their associated development, funding structures, and rate structures. Mr. Koenig indicated that staff would be trying to modernize those structures over the next couple years with respect to rate design and how the City communicates with its customers. Mr. Koenig stated that street, utility, and building infrastructure is a major issue. He noted the need to make decisions in the long term about what to do with the City’s buildings because the City was falling by the wayside in space, technology advancement inside of the buildings, security, etc. Mr. Koenig explained that there had been challenges related to the State’s budget that would probably come up again. He stated that the City had been fortunate that the State had delivered on a number of things in this regard over the last few years. Mr. Koenig indicated that the Mayor, staff, and members of Council had been working diligently with State agencies, including the Delaware Department of Transportation (DelDOT) and the Department of Natural Resources and Environmental Control (DNREC), to open up avenues in funding, whether through partnering with the State on projects or through State financial contributions. He noted that a lot of these projects require the City to bring money to the table, causing budgeting challenges. Mr. Koenig stated that, over the last couple of years, discomfort had been experienced regarding social issues, and the City had been hearing a lot about housing concerns. He indicated that there

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 4 had been a lot of discussion with respect to the Downtown Development District regarding homelessness and what to do with those types of programs because the City’s budget does not include social services. Mr. Koenig advised that crime is also a major topic, as well as the outgrowths of crime, including drug and drug rehabilitation issues, and a discussion had begun this year regarding feral cats. He explained that people in the community were aware of these issues and the City has to work on acceptable solutions. Mr. Koenig noted that some of these things were not even remotely mentioned in the budget, so there were challenges at a budgetary level about how to address them. Mr. Koenig stated that Dover, in his opinion, is a manageable city with a population in the range of 37,500. He indicated that there is a big influx of State employees during the day and estimated the increased population at approximately 50,000. Mr. Koenig indicated that he thought there was a good opportunity in the next five (5) to 10 years to attract things to the capital city and make it an even better place to live, work, and enjoy. Deputy Police Chief Marvin Mailey stated that the Dover Police Department had challenges with technology, noting that they would start a pilot program for the Body Worn Camera Initiative in January. He noted that they were also doing 60-day pilot programs for TASER and COBAN. Deputy Chief Mailey advised that issues were not with the up front cost but with cloud storage costs in outgoing years, which were not traditionally in the Department’s budget. He indicated that he would work with Mrs. Donna Mitchell, Controller/Treasurer, and Mr. Koenig to negotiate the storage costs because he thought it would be in the best interest of the Police Department and the residents of Dover in regard to transparency and community outreach. Deputy Chief Mailey advised that training is always an issue for the Police Department, which is a fairly young agency with a large number of junior officers who are new to their positions and specialities and require annual training. He noted that a segment of the Department is at retirement age and there would be turnover for the next couple of years. Deputy Chief Mailey stated that the Department had been working with Mr. Koenig on building maintenance, and Mr. Koenig had been very receptive and helpful. Deputy Chief Mailey indicated that these were items that the Department traditionally had not had to negotiate and they were looking at how to resolve these issues. Deputy Chief Mailey explained that the Police Department’s number one job is public safety and making sure that the residents, the businesses, and people of the City of Dover are safe to shop, live, and go to school. He noted that there are always tough choices about where to spend money and whether it is spent correctly. Deputy Chief Mailey stated that they do not live lavishly and spend on the things they need to perform their duties, noting that this had always been a struggle, but they had made it work and would continue to do so. He stated that, although their staff was relatively young, they were very experienced, talented, and smart. Deputy Chief Mailey indicated that they wanted to do great things and he looked forward to what they can do in the outgoing years. In regard to the budget, Deputy Chief Mailey stated that he knew the City was always challenged with reducing and how and where to save money. He indicated that in previous years when he had worked with the budget, there had been a good conversation between the Department and Mrs. Mitchell, and a happy medium had been reached about what could and could not be purchased. Deputy Chief Mailey stated that when there are shortcomings in certain areas, Mrs. Mitchell directs

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 5 them in the right way and they make it work, no matter the situation, because they do not have the option of failure. Mrs. Donna Mitchell stated that the Finance Department has major issues with prioritizing to try to make sure that all departments can finance their many priorities. While she always has a watchful eye on the finances, she explained that she also sees that their due diligence is done to make sure that physical and financial resources are optimized, and this is a major goal. Mrs. Mitchell advised that she was working on a Request for Proposals (RFP) for an Enterprise Resource Planning (ERP) financial system, noting that the City’s current technology was over 20 years old. She explained that staff was looking to replace the current system, which would allow for more user-friendly data for the management team. Mrs. Mitchell explained that another goal is to assist the departments and to get timely financial reports and data to Council so that they can make decisions based on that data. Mr. Kirby Hudson, Assistant City Manager, explained that although he is not a department head, he oversees the Information Technology (IT) Department, Dover Public Library, and the Customer Service Department. He indicated that he spends most of his time with the Customer Service Department, whose major challenge is trying to get customers to pay their bills on time. Mr. Hudson advised that the Department was now ramping up with staff to streamline the process; however, he noted that there would always be issues with the public because they view the Department as a heavy-handed agency. He stated that their job is to collect money, which is not easy. Mr. Hudson indicated that there are consequences for those who do not pay, and the severe consequence is that their electric is cut. He explained that there is a part of the population who can afford to pay but they do not pay the City’s bill before their other bills. Mr. Hudson noted that there are others who may not be able to afford to pay and may have challenges within their homes, such as inefficient heating systems, old equipment, and leaky windows. He advised that the Department had started aligning the City with other agencies that have money and resources to help those individuals. Mr. Hudson indicated that several meetings had recently been held with some of these organizations and they were now trying to incorporate this with customer service so that staff could help identify and assist those people who are experiencing challenges. In regard to the Dover Public Library, Mr. Hudson advised that it was troublesome for the library that a huge population of homeless people found the library a logical place to go because there were not many other places for them. He indicated that staff was finding that these individuals were not being reasonable with what they do at the library or cleaning up behind themselves, and they were causing other people who normally use library services to be afraid to come in, especially young children. Mr. Hudson questioned what should be done with homeless individuals, stating that the City was not set up with social services to be able to take care of these things. He stated that he had personally spoken with more than a dozen homeless individuals, none of whom were from Dover and many who were not from the State of Delaware. Mr. Hudson stated that he was curious why they left somewhere else to come here. Mr. Hare asked why the individuals that Mr. Hudson had talked to had come to Delaware or Dover. Responding, Mr. Hudson advised that there was a perception through the homeless network that Delaware, specifically Dover, was doing more for the homeless than other areas and that was

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 6 attracting people to Dover; however, when they arrive they question where the services are and go back and forth between Dover and Wilmington. Mr. Hudson explained that he had met with people from Wilmington, and Wilmington was further ahead in terms of services than Dover. Mr. Hudson indicated he was unsure where the perception came from that Dover was doing things for the homeless. Mr. Passwaters advised that the library’s issue with homelessness was not unique to Dover, stating that he had dealt with people in Maryland who had this concern. He indicated that it had gotten to the point that time limits were established and if someone in the library is not actually reading or using a computer, etc., they are politely asked to leave and the local police department is engaged to patrol. Mr. Passwaters stated that this is difficult because the homeless are struggling to keep safe, yet a policeman has to come in to tell them they are disrupting service and ask them to leave, although they can come back later. He indicated that the library provides a service for everyone, and one person who is down on their luck cannot be allowed to disrupt the services that other people are trying to enjoy. Mr. Passwaters suggested calling libraries in other states to see what they were doing in this regard. In regard to the IT Department, Mr. Hudson indicated that this department was experiencing growing pains. He explained that some of the old technology was outdated and replacing it would cost money, which was another big challenge. Mrs. Ann Marie Townshend, Director of Planning and Community Development, stated that this Department involves Planning, Inspections, and Parks and Recreation. She stated that the City had been through a number of years where growth and development was down in the City, which affected tax and permit revenue, as well as permit volume, etc. Mrs. Townshend advised that at that point one of the building inspectors was moved into code enforcement because there was not a lot of construction and there were more vacant buildings. She explained that code enforcement pressures had not let up; however, permit volume was picking up. Mrs. Townshend indicated that this had created some challenges in terms of staff’s ability to respond quickly and get inspections scheduled, and they had been doing some sharing between code enforcement and building permits. She stated that the increase in permit volume and permit revenue was good for the City as a whole because it would become tax revenue. Mrs. Townshend indicated that the Planning Department was very heavily involved in Restoring Central Dover and the Downtown Development District, and staff was serving on a number of the Restoring Central Dover work groups. She advised that she works very closely with Habitat for Humanity, the National Council on Agricultural Life and Labor Research (NCALL), and Milford Housing as housing partners, and with people in the private sector to try to get new housing stock and home ownership in the downtown area. Mrs. Townshend stated that they also work closely with the Dover Police Department because there are issues with crime and blight, and there is an across-the-board approach in trying to bring in new housing, address crime issues, and deal with the houses next to the houses that are falling down. She noted that there had been a very active demolition program over the last few years. Mrs. Townshend advised that there was a very active Bicycle and Pedestrian Subcommittee and that DelDOT had fortunately come to the table in this area by providing quite a bit of funding to help

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 7 with planning and constructing bicycle and pedestrian infrastructure. She stated that in the coming year the Department would be working on a number of plans for several City parks. In addition, Mrs. Townshend explained that staff would work on an update to the City’s Comprehensive Plan, which is a huge project. She noted that she would like to see stronger elements in a number of areas of the Comprehensive Plan, particularly in housing and economic development, so that these areas of the Plan could be drawn on in a more meaningful way to bring the City forward. Mrs. Townshend stated that she would be looking for Council’s active involvement in the Comprehensive Plan process. Ms. Patricia Marney, Customer Service Director, advised that she had been newly appointed to her position and there were quite a few challenges as they increase staffing. She indicated that this Department is multi-faceted and serves all citizens through utility and miscellaneous billing, and also works with several City Departments, including Planning and Inspections, the Tax Assessor’s Office, Human Resources, Electric Administration, and Finance. Ms. Marney explained that the Department is not a social service agency; however, staff was trying to find ways to provide compassionate policies. She explained that the Department is facing major challenges regarding how to assist customers with their issues while maintaining the City’s core values, how to bring in revenue, how to help bring customer accounts current and still hear their issues, and where to direct customers outside of the City for assistance. Ms. Margery Cyr, Library Director, stated that the Dover Public Library is in the quality of life business, focuses on life-wide learning so that people can work through old age, and serves all citizens regardless of their stage in life or circumstances. She indicated that the library serves a population that is larger than the City of Dover because it serves as the anchor library for Kent County. Ms. Cyr explained that they provide program support to developmental thinking through access to information, and their goal is that all citizens will have the ability to think and make informed rational decisions throughout the course of their lives. She advised that the library is faced with significant challenges. Ms. Cyr noted that they are blessed with a very new, very modern building equipped with state of the art technology, but it costs money and a skilled workforce to maintain it. She indicated that they were also facing a possible funding crisis with the potential loss of State aid, which funds 100% of the services that the library offers to the public and 100% of the technology offered to the public. Ms. Cyr stated that if State funding is lost the library will be in a very difficult position, noting that this would be approximately $400,000 for the library. She explained that their business is always in the growth stage and the ability to maintain the skills and the skill levels of their staff is absolutely crucial to how they serve. Mr. Passwaters asked for clarification regarding Ms. Cyr’s statement that the State funds 100% of the library’s services to the public. Ms. Cyr explained that funding was close to 100% since the State provides 100% of the money that is spent on audio visual materials that the public is allowed to borrow, approximately 85% of all of the books purchased for the public to borrow, all of the publicity and all of the cost for the programs that are made available to them. Mrs. Kimberly Hawkins stated that she works with every single department in the City and enjoys it every day. She stated that approximately 85% of the workforce is unionized and they are represented by four (4) unions, which presents some challenges. Mrs. Hawkins advised that recruitment and retention are the Department’s top priorities and their most time-consuming tasks.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 8 She noted that 44 new employees were hired and that number will continue going up in the future. Mrs. Hawkins stated that many departments have Capital Improvement Projects (CIPs), she likes to refer to them as Capital Investment Projects, and she considers herself to have one of the City’s major Capital Investment Projects, which is staff. She explained that without a happy workforce, nothing will be accomplished for the citizens and customers that the City serves. Mrs. Hawkins stated that time and time again, HR books state that a passionate employee is a very productive employee, so she likes to keep employees as happy possible, working within the guidelines of budget constraints. She stated that her department does the best that they can. Mr. Harry Maloney stated that over the last 40 years he had seen electricity go from a simple utility, where power is supplied to the customers and it is very easy to charge them, to the present, when every customer can be its own generator and its own energy supplier. He noted the challenges of dealing with complaints in both the generation and in distribution. In addition, he noted that there was turnover in staff and that enough staff was needed to handle the new challenges in the marketplace, serving the wants and needs of customers, and new technology that changes every day. He noted that electronic thermostats could be put in every house and theoretically he could control the loop from one (1) place. Mr. Maloney advised that it is becoming difficult for the City to keep the lights on, not so much from the physical side but from the reliability side of technology. For example, he noted that someone had hacked into a utility and left a virus on the software through an email. He stated that luckily the operation did not suffer; however, people across the whole country were very scared, and everyone stopped to check if it was on their computers. Mr. Maloney explained that the electronic world is great but scary, stating the need for the City to keep somewhat isolated from the rest of the world, which has its challenges. He advised that the utility was in good condition overall and staff was trying to set up an Integrated Resource Plan (IRP) for long-term planning. Mr. Maloney noted that President-Elect Trump was a new factor and it was not known what he would do. He stated that staff was slowing down to see what would happen with his executive order, noting that they did not want to be spinning their wheels if some environmental laws are crashed. Mr. Maloney indicated that the short-term issues were getting personnel up to speed and attending to short-term daily issues. He explained that five (5) years is a short term for the utility, noting that staff tries to look at the 40-year plan regarding where the City is going. When they build a substation, they hope it is built to go for 40 years. Mr. Passwaters commented that people and cost were common factors in the various departments. He indicated that everyone should be taking notes, listening to each other, and thinking about a 40-year plan, as mentioned by Mr. Maloney. Mr. Passwaters stated that those who can infiltrate technology will continue to try, and this would not stop or go away. He noted that security is dealt with every day in the government and they update their passwords every 30 days. COUNCIL VISION -MISSION STATEMENT - “WHERE DO WE WANT TO GO?” Mr. Passwaters asked if City Council had a vision statement. Responding, Mr. Neil suggested a vision statement of where he thought they should be going, which was “To create a safe and diverse environment responsive to the needs of the citizens permitting individual and community growth.”

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 9 Mrs. Townshend advised that the City has a vision statement that is in the budget document. Mr. Passwaters asked what the definition of “vision” was. Responding, Mr. Sudler stated it was the way you see yourself in the future. Mr. Passwaters stated that vision is the ability to see what might happen and to have the ability to think. He indicated that think tanks are popular, especially in Washington, DC, because help is needed for people to get all their thoughts together regarding what something is going to look like 10 years from now, and he hoped this was part of the City’s vision. Mrs. Townshend provided Mr. Passwaters the City’s vision statement, which he read as follows: “The City of Dover is a place where people want to live. Through the team effort of its elected officials, employees, and citizens, Dover is a clean and safe community with a future of balanced growth and opportunity where all citizens are heard, enjoy a high quality of life, and diversity is valued.” Responding to Mr. Passwaters, Mr. Slavin stated that the purpose of the discussion was not necessarily to talk about a new vision statement. He stated that he would like to hear Mr. Neil’s thoughts and that members could amend the vision statement. Mr. Slavin was unsure if this was an activity that could be done in the current setting, but some people might be set aside to do that. Mr. Neil stated that, in essence, his proposal stated the same things that were in the current statement, although the current statement had more in it. He expressed his view that they were looking for safety and at having to pay for it, looking for diversity and wanting to make sure everybody is included, and wanting to make sure that there is individual and community growth. Mr. Neil noted that businesses who come in attract other people to Dover to do business, which enhances the City’s ability to pay for services and keep taxes low. He advised that the points Mr. Maloney had raised regarding what the City would do with the electric utility were very important because the City makes money on electricity. Mr. Neil stated that Mr. Koenig had advised members that from October to May, the City had the lowest rates in the entire State, and this profit could be used to keep taxes down. For clarification, Mr. Koenig advised that the City had the lowest residential rates. Mr. Neil noted that the City has a little more flexibility in keeping businesses due to the electric program put into place, and stated he felt it important to maintain it, even though the City was taking two (2) old units offline. He indicated that there was still a unit online but questioned if the City should reinvest in it. Mr. Neil stated that resolving this would be complicated because of what is happening in the industry, and noted that Mr. Maloney was the City’s expert. He advised that people are using less electricity because of the energy efficient appliances that are coming out and the like. He stated that this was a balancing act; however, it was very important to the City in terms of having money come in to help finance the things that the City wants to do. Mr. Slavin stated that the vision being discussed was a strategic vision. He advised that he becomes very nervous about managing the electric utility, noting that he had watched management of the electric utility become a very complicated industry in the short period of time that he had been

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 10 involved in it. Mr. Slavin indicated that he did not know if nine (9) part-time employees can oversee the type of multi-million dollar industry that is involved in buying futures and future prices. He stated that the City was not in the electric generation business anymore but was in the distribution business, and the City had relied on this utility to offset expenses for general government and the need for real estate taxes to be higher in its underlying economic model. Mr. Slavin stated that this was a great model, noting that the rural electrification program started coming down the Delmarva Peninsula approximately 100 years ago, and whoever made the decision for the City to own its own utility made a good decision then. He indicated that those who were involved with the decision regarding Duke Energy also made a good decision, and a series of good decisions had been made. Mr. Slavin stated that he thought the time for that old model of the City owning its own utility may be coming to a close. He noted that it is good for the City when people turn the lights on; however, the world had changed and consumers do not want lights to be on if they are not needed and do not want to pay an electric bill if they do not have to. Mr. Slavin indicated that last week the revenues of the Town of Frankford dipped significantly because one (1) of the chicken processing factories in their town dug a new well and was no longer going to the municipal utility for water since it was cheaper to do that themselves. He suggested that this is what the utility would look like 10, 20, or 30 years down the road, when competition would not be from multi-million dollar organizations coming in but from individuals who no longer want to use the City’s product. He advised that people want to get the same electric, water, or wastewater services and have it cost them less or no money, and they want to have options. Mr. Slavin advised that the crash that may come is that the City continues to rely on revenue from the electric utility that it may not be able to generate. He stated that past discussions had been about looking for other alternatives to provide electricity to the citizens and suggested looking at this with a more holistic view, not from just a utility standpoint but from the perspectives of economics, tax base, and the ability to deliver other core services that the City must provide. Mr. Slavin indicated that this was part of his recommendation from a personal view. Mr. Neil stated that there was a report in the newspaper regarding a Delaware Electric Co-op average drop of $72 per year and indicated that this becomes a factor in what the City is doing. He stated he thought the City needed to decide where it was going to go and asked if the City could exist as a middle man, buying service from someone else and passing it on with a little surcharge. Mr. Neil stated he thought the City was facing other long-term issues, including a new municipal building or complex which kept being pushed out. He indicated that this could be discussed later. Mr. Slavin stated that decisions did not have to be made the next day or the next week regarding long-time issues; however, they would have to be made sooner rather than later if they were to be wise decisions. He indicated that he would not be hasty and would do his due diligence; however, he cautioned that if a decision on the electric utility is left for 10 years, Council members would be leaving their successors with trouble. Mayor Christiansen echoed Mr. Slavin’s concerns, stating that this had been an ongoing issue since 1983 when he was elected to City Council the first time and it had been known for eons that this funding source may dissipate. Mayor Christiansen advised that the City relies heavily on the electric utility and other enterprise funds that were there to supplement a 55% tax base, noting that this did not even cover the Police Department’s budget. He suggested keying in on Mr. Slavin’s point so that this issue is not dumped into somebody else’s lap down the road.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 11 Mr. Koenig advised that the City has very savvy customers and, in regard to utilities, the City is being challenged with net metering, solar energy, additions to houses, and people who are consciously trying to cut their bills because the regulations are favorable and they believe that those things are in their best interests. He noted that, as the regulations change, customer behavior is changing and the City as an organization is having difficulty changing very quickly. Mr. Koenig indicated that regulations can change quicker than the City can adjust. He advised that the City was seeing a range of behaviors from residential customers, from those who are on fixed incomes and are very savvy with their dollars, to businesses who were using hundreds of thousands of gallons of water years ago but were now recycling. He noted that customers were doing everything they can 24/7, 365 days per year to manage and cut that cost because it is an invariable cost that they can tack onto their process side. Mr. Koenig stated that, on the customer side, people want to know exactly what their bill is and want them electronically. He indicated that they want to be able to log on, fill out permits, and get instant service. Mr. Koenig advised that staff was being challenged by a society that operates 24 hours per day because the City receives emails and requests at 2:00 a.m., 3:00 a.m., or 4:00 a.m., and people call at 8:00 a.m. asking why they do not have an answer to their request. He stated that this is true across the board, noting that the utilities sector is under this type of scrutiny and people also want crime or accident reports and Freedom of Information Act (FOIA) requests fulfilled instantaneously. Mr. Koenig noted that the pressure to move quickly and accurately is mounting. He advised that these things must be added into a workforce and it comes down to people and cost, noting most of these things cannot be put on autopilot because the information coming back out must be checked for quality. Mr. Koenig indicated that this may become an electronic process at some point; however, a person must monitor it to make sure the information is accurate. He stated that staff may do everything right; however, things can happen, for example, electric bills may stick together because the humidity adjustment in the building happened incorrectly on a day when there was a big bill run. Mr. Koenig indicated that a number of customers become frustrated to the point of coming in and unloading on staff. He noted that all of these things are challenging staff and as the City is getting bigger, staff is trying to address more challenges. Mr. Koenig advised that there are significant issues, noting that the City is trying to attract customers and offer economic development incentives; however, often what is expected to happen is not exactly how it comes out. He noted that Calpine had been a very good customer for the City but had not quite reached the level of revenue that was originally anticipated. Mr. Koenig advised that the City was still trying to figure out whether that had been a good investment and if it would pay off in the time frame that was originally expected or if it would be extended. He stated there was a question of what incentives should be offered when trying to attract people to the City of Dover, because it was not wanted for them to just come and set up shop but to stay and contribute. Mr. Koenig explained that there is a margin of faith that businesses who come in will do what they say they will. He noted that businesses he had dealt with act in their own best interest, not his or the City’s best interest, even though that may be how the discussion starts. Mr. Koenig indicated that staff was having to adjust because the City is in the business of trying to attract people to the community, invest in it, and add to its value. He stated that people coming in and adding value helps the City from a revenue and service standpoint; however, the City cannot be taken to the cleaners in that discussion, noting that in someways it is like a card game. Mr. Koenig explained that staff is challenged because the City could spend a lot of money on infrastructure investment to get a

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 12 customer in for a couple years, the City’s rates may then become accustomed to that customer, and the customer may then decide to close a factory for business reasons. He stated that years ago Scott Paper had a paper manufacturing operation, decided to close it, and the City’s water demand decreased by approximate 0.5M gallons per day. Mr. Koenig advised that it takes a lot of houses to make up that many gallons per day of water, comparing this change from a single meter industrial customer to 500 residential meters and customers. He noted that this change would still not be equitable and there would be a lot of work related to the 500 new residential customers. Mr. Koenig advised that these challenges were just part of doing business, and staff must manage and present them to Council and the Mayor and make all these things work. He indicated that the challenges were becoming more interactive, customers were savvy, and major industrial customers wanted the best deal possible. Mr. Koenig stated that it is a challenge for the City to talk to one (1) business without applying the same theory to everybody else and noted the need to weigh the value of what is being offered. Having worked with several city councils in Maryland and Delaware, Mr. Passwaters stated that there was nothing harder for a group of people to do than run a small city in this country because of the challenges being discussed. He advised that challenges such as how to make money or how to rely on something that may not be there in 10 years do not change. Mr. Passwaters advised that he could think of 10 municipalities in Delaware alone whose major source of income was the electric department and this is something that must be fixed, noting that he did not envy the City’s task. He indicated that he would like to know what the City comes up with in order to share the information with others. By unanimous consent, the meeting recessed at 10:15 a.m. and reconvened at 10:31 a.m. DISCUSSION - COUNCIL DISTRICT GOALS - TWO (2) SHORT-TERM/TWO (2) LONG-TERM GOALS - EACH DISTRICT/ COUNCILMAN Council President Slavin noted that there were members of the public present and suggested that they take this opportunity to participate. Mr. Scott Kidner stated that he was attending on behalf of the Central Delaware Chamber of Commerce (CDCC), explaining that the CDCC wanted to ensure that Council considered incorporating and keeping the CDCC in their thoughts as they began a more robust strategic planning process for the City. He noted that the CDCC has many members, with businesses up and down the County, and that there were resources, people, industries, and organizations that could help with planning. Mr. Kidner advised that there had been a fair amount of discussion about the electric utility, and members of the CDCC continued to be very concerned about at least the commercial side of the City’s electric rates. He noted that the CDCC’s members were putting in automatic switches that turn lights on and off as people enter and leave a room. Mr. Kidner stated that from the CDCC’s point of view, they would suggest that it may become time for the City to divest from the utility and get out of that business, perhaps not this year or the next, but within the next five (5) years. He noted that it is incredibly difficult to manage electricity, particularly in the manner in which the world is moving, and the regulatory environment alone requires people on staff who will watch, monitor, and keep an eye on what is going on at the Federal and State levels.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 13 Mr. Kidner offered to provide a list of suggestions from the CDCC to the Council President and City Manager. (City Clerk’s Office Note: Subsequent to the meeting, Mr. Kidner provided a document entitled “Central Delaware Chamber of Commerce - Vision 2020 for Dover - As of: 6 Jan 2017” (Exhibit #1). Mr. Kidner stated that the speed at which the City can issue permits and take care of business people who walk into town and want to do business with the City becomes a competitive advantage. He stated that Middletown had decided they were going to be the place to go if someone wants to expand. Mr. Kidner indicated that Middletown had taken advantage of the New Castle County Unified Development Code (UDC), noting that this document had been very difficult to manage and maneuver through. He explained that New Castle County had just put in three (3) new overlay ordinances, and a number of his clients and the chambers in that area were already advising Mr. Matthew Meyer, the new County Executive, that these three (3) ordinances would slow development further. Mr. Kidner indicated that Mayor Ken Branner in Middletown was glad because everyone would continue to run to Middletown. Mr. Kidner acknowledged that this would bring its own challenges, including traffic congestion. Mr. Kidner advised that, as previously mentioned by Mr. Koenig, the speed at which the City can react is critical. Mr. Kidner indicated that people must be able to walk in, get a permit, and walk out six (6) hours later with what they need. He noted that the ability to navigate the City through one- stop shopping was critical. Mr. Kidner suggested the possible creation of an ombudsman or that perhaps one (1) member of Council could become the individual who is up to speed on how to maneuver through the process of licensing, inspections, and permitting in the City. Mr. Kidner indicated that, from the CDCC’s point of view, the City must identify what the core services of the City are, which would include the ability to conduct, retain, and grow businesses. He indicated that it was the opinion of the CDCC that the City’s core services are business and should be taken care of through economic development, various programs, incentives, and those types of things. Mr. Kidner agreed with Mr. Koenig’s comment that this involved playing with a difficult card deck because the City does not want to give away the store. He stated that if the City created an impression and environment that Dover is the place to be if someone is going to start or grow a business, many of the other issues would start to be alleviated, particularly on the money side. Mr. Kidner noted that, from the CDCC’s point of view, tertiary social issues are too hard to handle, and the City does not have the staff, expertise, or resources to handle them and should tell people this, because if the City siphons resources to handle these issues, it will not be able to take care of the business community, who are the men and women who pay the taxes. Mr. Kidner indicated that the CDCC was very excited, noting that the City had some big decisions coming. He stated that he thought the City was on the bubble of what direction it would go, and this would be solved in the next year and a half to two (2) years, stating that he did not think there was much more time to deal with tertiary social issues, utilities, and those types of things. Mr. Kidner noted that there are a number of small parks around the City, some of which are well maintained and some that are not. He stated that the CDCC had thought of a potential idea of allowing corporate sponsors to dress up and landscape these parks, explaining that the sponsors would put in a small sign stating, for example, “Landscaping sponsored by the Central Delaware Chamber of Commerce.” Mr. Kidner indicated that a link could be included on the City’s website connecting to the sponsor’s website, and this program could provide corporate sponsors for FY 2017 among all the small local parks. He stated that other municipalities do this and, although it would

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 14 not be a money generator, it might take some pressure off Parks and Recreation and some of those who do a great job with the City’s flowers. Mr. Kidner noted that the CDCC had seven (7) or eight (8) other suggestions covering zoning, the Comprehensive Plan, economic development, the ombudsman issue, and strategic planning, reiterating that he would provide them to the City Manager for distribution to members for further consideration. Mr. Passwaters stated that he liked what Mr. Kidner had suggested regarding the parks, noting that this is a free enterprise country and the City is no different, noting that NFL parks are marked with labels such as “Citizens Bank” rather than “Philadelphia Eagles.” He advised that it is okay to receive money for these services and it would not take long to connect a link on the website and be paid for this privilege. Mr. Slavin reminded members that each Council member had been asked to bring two (2) long-term and two (2) short-term goals. Members were provided a document from Mr. Neil which included a proposed mission statement and long- and short-term recommended projects for the City and the Third District (Exhibit #2). Mr. Neil stated that anything that benefits the City would benefit the Third District in the short or long term. Referring to the Long Term Recommended Projects, he noted that a new municipal building was needed to replace City Hall and 5 East Reed Street. Mr. Neil stated that the decision on how to proceed with electricity was not something that he wanted to happen but that the City must make a decision on how to proceed. Regarding Short Term Recommended Projects, Mr. Neil suggested that a scoreboard to allow members of Council to see the status of all projects, empty City-owned buildings, the status of job openings, complaints pending with estimated completion and resolution dates, and the flow of legislation would help every district. He stated that the majority of Council was new and suddenly had problems placed in front of them, such as bamboo and egress to Silver Lake from certain areas. Mr. Neil stated that he thought everyone needed a picture to look at electronically and see what was happening with everything that had come to their attention. He indicated that a scoreboard would help the City Manager and department heads as well, explaining that they would be able to look at that same board and track the progress of what was being done. Mr. Neil stated that another issue was the valuation and sale of empty buildings, noting that the old library had been sitting for a long while, nothing had happened with it, and there was a need to take a look at it. He noted that he had recently agreed to sponsor an ordinance to update the Code in regard to empty buildings. Mr. Neil indicated that it was important to decide if a building could be used by someone else or for some other City purpose, noting that these building are owned by the citizens and it should be decided what to do with them and whether they are surplus. Mr. Neil noted that he had provided a rationale explaining why each item he had mentioned was important to resolve.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 15 Referring to his long-term recommendations specific to the Third District, Mr. Neil indicated that he thought the City could keep Dover Downs solvent by pressuring the State not to take all of the profits. He noted that Dover Downs is in the Third District and is an economic force that gives Dover a national presence that no other facility in this area does, with NASCAR twice per year and the Firefly Music Festival. Mr. Neil indicated that Firefly is not just local but international and is a draw that the City must be able to capitalize on. He stated that he thought it was wrong that the State had simply said that it would take the money of this free enterprise business to use for other purposes. Mr. Neil advised that Dover Downs does things for the community, allowing church and community groups to earn money by parking cars, and giving many dinners and overnight rooms. He stated that what the State had done to Dover Downs was bad and the City had to lend itself to this issue as heavily as possible. Mr. Neil also suggested examining the possibility of an approved road from the Delaware Route 1 Toll Road extending to Persimmon Tree Lane. He advised that Council had agreed to a service road going in behind the shopping centers, noting that DelDOT may have to pay for it. Mr. Neil stated that this road would provide another means for those attending Firefly and NASCAR to escape onto Delaware 1 much faster and would become important in regard to the expansion of services and businesses. Mr. Neil recalled that Mr. John Paradee had made a request to Council regarding this matter and Mr. Neil had voted for it and pushed it. Referring to his short-term recommendations specific to the Third District, Mr. Neil stated that the City had been promising the residents of Wild Meadows and Persimmon Tree Apartments and everyone in that area an emergency egress. He stated that when their escape route to Route 13 is cut off, there must be a way for fire, ambulance, and emergency vehicles to get out of that area. Mr. Neil indicated that this three-mile turnaround becomes a 13-mile turnaround for those who live there when roads to Route 13 are cut off, and there is no escape route in case of emergency or fire. He stated that this had been discussed for the past three (3) to five (5) years since Firefly had come in, and there was now another area where the road had been cut off. Mr. Neil stated that this must move forward. Mr. Neil advised that another short-term recommendation specific to the Third District would be the development of Dover Park, so that the City has a facility up and running for the people there. He noted that Councilman Sudler had also expressed an interest in this. Mr. Neil explained that this park is in the Third District and stated the need to explore this issue and move forward. He reminded members that this was an issue that had been discussed, and he questioned when something was going to be done. Mr. Neil reiterated the need for issues like this to appear on some type of scoreboard to see how far members would go with it, noting that he thought that members owed this to the citizens. Mr. Hare stated that he would like to see a complete review of non-profits to see if they really are non-profits and to perhaps implement some type of a public safety fee. He reminded members that this issue had been mentioned last year but had been sidetracked. Mr. Hare advised that there are a lot of properties in the City that pay absolutely nothing in taxes or for public safety, do not make a donation to the Fire Department, and still receive all the services. He explained that he had discussed this with Mrs. Cheryl Bundek, Tax Assessor, who had been very helpful and given him information, and he thought there was a bit of a jump start on this issue. Mr. Hare indicated that this

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 16 would go along with supporting police and fire personnel, especially the Fire Department and its volunteers. He stated that he did not think the City wanted to reach the point of having a paid fire department. Mr. Hare stated that there was a need to look at the recycling contract, explaining that there were issues and recycling was hit or miss in the Second District. He noted that the recycling collectors may pick up three (3) cans, skip two (2) cans, and pick up three (3) cans. Mr. Hare indicated that it seemed that they had gotten a little better lately, noting that they were nearing the end of their contract. In regard to code enforcement, Mr. Hare expressed his hope that the City was fully manned and indicated that he would like the City to review some of its regulations. He stated his belief that the City’s Code is too easy on repeat offenders. Mr. Hare explained that, in the Second District, there are some residents who receive a summons, correct the problem to avoid a fine, and then do it again. He suggested that perhaps those who repeat an offense after receiving a first notification should be fined. In regard to economic development, Mr. Hare stated that Dover should become open for business and business friendly. He indicated that members of the Economic Development Committee should be appointed and the Committee should be all set up so the City can start forging ahead. Referring to hiring, Mr. Hare indicated that he thought that the City needed to be a little quicker in filling vacant positions. He noted that it seemed like Customer Service Department staff were being hired pretty quickly. Mr. Hare stated that if there was something that could be done to speed up the City’s hiring process, he thought it should be done. Mr. Hare stated that he was unsure what could be done regarding homelessness and jobs. He stated that during an event held last summer, homeless people were referred to a place where there was hiring and declined work at McDonald’s for $10 per hour and food. Mr. Hare stated the need to try to provide help in this direction. Mr. Sudler advised that, as a long-term goal, he would support a mini-mobile police station to help combat the high density of criminal activity in some areas and help ensure public safety in the Fourth District and throughout the City. For his second long-term goal, he stated that he would like to see a homeless resource center that would help eradicate the homeless issue, with them using the library as a day/night care center. Mr. Sudler advised that his first short-term goal would be continue to support improvements to the City's exterior infrastructure, such as paving of roads and repairs to curb appeal in the Fourth District and throughout the City. He indicated that he was aware of two (2) roads in need of attention. Mr. Sudler provided a document entitled “4th District Constituent’s Official Request for City Road to be Paved, October 2016” (Exhibit #3) and asked that the City Clerk’s Office submit it to the City Manager. He explained that the request pertained to Conwell Street and included pictures of the area, as well as a petition signed by residents to have the road paved, and noted that the residents thought that the road had not been paved for over 80 years. Mr. Sudler thanked the City Manager and Code Enforcement staff for the work done in the Lincoln Park area and indicated that he would

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 17 like to have work continue on a few things there. He submitted a document entitled “Official Complaint from James Wilmer, 849 Lincoln St., Dover, DE 19904, 1-6-2017” (Exhibit #4) to Mrs. McDowell for Mrs. Townshend and Mr. Koenig to review. Referring to his second short-term goal, Mr. Sudler informed members that he liked the fact that the City was focusing on non-conforming use. He stated that he hoped that the City would continue to focus on non-conforming use businesses that are a detriment and nuisance to the welfare and safety of the general public, and take a good look at approving or disapproving their licenses. Mr. Sudler indicated that his final short-term goal was additional parking in the downtown area, noting that there had been concerns about lack of parking when people come to the downtown area to shop. In addition, he advised that there was a concern regarding business owners not being made aware of parades. Mr. Sudler explained that sometimes business owners park in front of their businesses and may have been ticketed because they were not aware there was going to be a parade. Mr. Sudler stated that he would like to see a better line of communication between business owners and those who are responsible for letting them know that there will be a parade. In regard to parking downtown, Mr. Anderson stated that he would like to see signage, noting that there is often nearby parking available; however, it is not necessarily easy to see. He stated that he thought it was vital, as a short-term goal, for the City to communicate the parking that already exists. Mr. Anderson indicated that he agreed that more parking was needed; however, he stated that he thought that was a long-term issue and suggested perhaps looking at apps for people to use to find parking downtown. Mr. Anderson advised that he would also like to see one-stop shopping and streamlining in the way people go about opening new businesses. He explained that one-stop shopping should be a long- term objective; however, as a short-term objective, he would like the City to have a resource for people so that they would know everything they need from the beginning and could have their own roadmap. Mr. Anderson explained that the roadmap would tell people how to get a business permit, electricity, etc.; what forms to fill out; and who they need to speak to and their contact information. He indicated that this should be streamlined and simple. Mr. Anderson advised that he had spoken with business people who were told two (2) or three (3) months after the fact that they were in violation of regulations. He noted that one (1) of his fellow National Christian Public Official Caucus members showed him some national model business locations, and the City was already doing 90% of what these places were doing. Mr. Anderson stated that the City was doing a pretty good job; however, it was the 10% that was killing them. He indicated that this had more to do with the regulatory status. Mr. Anderson thanked staff for looking at streamlining Customer Service, stating that he did not understand why he could not just leave a check that would go to the cashier instead of having to go over to the cashier, noting that there were small issues about the way the City does business. He indicated that many people say, “I like so much about Dover, but...”, and he thought that the City needed to take care of the “but” so that people have a reasonable level of predictability, and work toward streamlining business operations to one (1) or two (2) stops.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 18 Mr. Anderson advised that he would like to see a review of the Safe Communities Ordinance to see how it could be made to work better for nuisance homes that are creating crime in some areas. He estimated that certain addresses probably account for 40% of the calls that the City receives. Mr. Anderson indicated that there is not a huge crime problem in Dover, but there are certain residences and businesses that are huge crime issues. He expressed the need to find a way to address nuisance homes and businesses. Mr. Anderson advised that, in the longer term, he would like to see camera monitoring with the Police Department. He stated that there are a lot of cameras and they do some good, but they would do a lot more if they were monitored. Mr. Anderson indicated that he would like to see the technology upgraded so that more records could be kept for review, noting that they would not have to be kept 30 days but should be kept for at least two (2) or three (3) days. He commented that there should be more storage capability, stating that if the City was going to go with cameras, it should make them work. In addition, Mr. Anderson expressed the need to develop a community policing strategy that the City could sustain. He explained that the City had been working with grants; however, with grant funding going away, he stated that the City needed to decide what to sustain and fund and make a real commitment. In regard to the City’s Comprehensive Plan, Mr. Anderson stated that he would like to look at using the elements in the plan, noting that a neighborhood may decide to possibly reclaim some down areas and introduce affordable housing, including the possibility of a tiny home village. He indicated that he thought it essential for the Comprehensive Plan to take into account economic growth as well as safety in the community. Mr. Anderson expressed the need to develop more partnerships with non-profits, such as Goodwill, the MLK Education Center, and others with workforce development. He advised that the solution to a lot of the social problems was in connecting people with existing programs rather than the government coming up with new programs. Mr. Anderson advised that his final recommendation related to Parks and Recreation, and he suggested having restrooms at Silver Lake and Dover Park, like those at Brecknock Park. He stated that the City’s major parks should have restroom facilities. In the longer term, Mr. Anderson stated that he would like to see the fields reviewed so the City can meet its demands for soccer and other areas at Schutte Park. Mr. Slavin read a statement provided by Councilman Lewis into the record, as follows: “Regrettably, I will not be in attendance at this coming Friday's Annual Council Retreat, as you are aware I am employed by the State of Delaware and considered an Essential Employee. Therefore my scheduled duties with the state will prohibit me from attending this retreat. I have listed below some future goals I would like to see accomplished city-wide. Some maybe short others long term. 1. The organization of government. There needs to be more accountability with Administrative Staff. Either put the Mayor in charge as the CEO where all departments report to him and he to the City Council or all departments report to

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 19 the City Council President and he report to the full council. Eliminate the Assistant City Manager Position. 2. Developing a comprehensive/capital plan which would include the concept of a new Municipal Services Building. 3. A Traffic Circulation Plan for Downtown Dover Area and East to West end corridor plan. 4. I would like to see more support given for what Cheryl Bundick our City Tax Assessor is doing in reviewing all of the so-called tax-exempt 501C properties in Dover. Every time you turn around we keep given pieces of the city away. This has to stop. Example: How many of these 501c properties are unlawfully getting a tax exemptions? 5. Establishing a Dog Park for city residence.” Mr. Hosfelt stated, in regard to short-term goals, that he agreed with Mr. Hare about taking a serious look at a public safety or a public service fee for fire and police services in the City. He stated that he was tired of the universities and colleges in Dover that are supposed to be tax exempt and are using the City’s services and not paying for them. Mr. Hosfelt noted that there were other entities; however, he would start with universities and colleges. He advised that the City was at a point now where it would have to start budgeting approximately $180,000 to $200,000 a year to start paying for new fire trucks and must figure out where this would come from. Mr. Hosfelt stated that he agreed with Mr. Sudler and Mr. Anderson regarding Dover Park. He stated his understanding that Mrs. Townshend was working on this issue and advised that he would like to see the City come to a conclusion and move forward. Referring to the issue of homelessness, Mr. Hosfelt stated that he agreed with some of the things that had been said and disagreed with other things. He informed members that he was at a loss regarding this issue, stating that he did not know what the City could do for the homeless. Mr. Hosfelt noted that he had reached out to State legislators and County people to see what services are out there and questioned if there was something that the City was missing and did not know about. He explained that he had tried to establish a meeting in this regard and had yet to be successful, but would like to start over with the new calendar year and become successful in figuring something out. Mr. Hosfelt expressed frustration about seeing the homeless coming in and wanting help and not having any answers. He indicated that he disagreed with Mr. Anderson and did not like the idea of a tiny home village. Mr. Hosfelt stated that there would be a safety issue if the old library was opened up, as well as concerns about how this would be paid for and staffed. Mr. Hosfelt stated that he would like to see the City reinvest in buildings. He noted that this would involve long-range planning; however, he noted that a new City Hall might be 10 or 15 years down the road. Mr. Hosfelt stated that there was a need to come up with money to reinvest. He pointed out problems with the carpeting in the Conference Room, the floor near the rear exit, and the walls, noting that this was City Hall and everyone should be proud of this building. Mr. Hosfelt suggested

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 20 that Public Works staff could build a ramp to make Council Chambers Americans with Disabilities Act (ADA) accessible. He stated the need to reinvest and make these things happen in the short term. Mr. Hosfelt stated that his biggest concern was support for City staff. He indicated that he had heard discussion from staff members who had been around for a while, those who Council counts on to work for them day in and day out, that, “It’s time for me to go; I’ve got to go; I can’t take it anymore.” Mr. Hosfelt advised that the reason for these discussions was because of the pressure that Council was putting on them. Using himself as an example, Mr. Hosfelt stated that he had been unfair to Mr. Sudler and Mr. Hudson during previous discussions regarding increasing City staff in the Customer Service Department. Mr. Hosfelt explained that although he did not agree with the request, he could have approached the matter in a different way. He stated that members are in the age of social media and some like to post on social media what they think should be done, and name people, including City staff, which he stated was unfair and should not be done. Mr. Hosfelt explained that City staff supports members and does anything they are asked to do, and members need to return that support. He noted that members may not always agree with staff; however, there is a chain of command and the department head should not be subverted by going to somebody else. Mr. Hosfelt advised that he was guilty of this since he had built friendships in the City over the years because he used to work for the City. He indicated that it is unfair for members to subvert the department head and then hold them accountable when they do not receive an answer. Mr. Hosfelt indicated that he would like to see a reset in how members interact with and treat City staff, stating that this would be an easy short-term goal and his number one priority. Mr. Hutchison stated that he agreed with Mr. Hosfelt’s comments. He explained that dealing with the homeless was a big issue facing the City; however, he stated that he believed in partnerships and that before the City takes leadership, he thought there was a need to look at what the State and counties offer and see what the alternatives are. Mr. Hutchison stated that the biggest decision Council would have to make, which would have to be made early this year, would be dealing with the City’s electric system and the generation component. He reminded members that the City was currently having a study done which should be completed very soon, and members would have to decide whether to stay in the generation business or get out. Mr. Hutchison advised that Units 1 and 2 would be going offline, and he did not think that there would be another decision that Council would make this year or in the future that would have a greater impact on the future of the City. Mr. Hutchison expressed appreciation for the presence of the CDCC, stating that he had a deep regard for the Chamber, which has 900 members. He noted that he thought that the City had always had a good working relationship with the Chamber and that the City needed to continue that relationship. Mr. Hutchison advised that he would like to see better lines of communications from top to bottom. He noted that he had seen improvements in this over the last couple of months; however, he stated that communication is everything and the City must be in the forefront in this regard. Mr. Hutchison advised that he has a great deal of respect for what the Planning Department does day in and day out; however, he stated that he felt that there must be better methods. He noted that certain permits should be turned around quickly, and the City must have the ability to do this. Mr. Hutchison indicated that there are major projects that should be put on fast tracks because they will have a

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 21 tremendous impact upon the City. He stated that the Planning Department should have the flexibility to look at permits as they come in, not two (2) or three (3) hours later, and identify them as fast track. Mr. Hutchison stated that the City needs to be better at providing customer service to those who pay and support the City. He advised that a great team of people works for the City and he has huge respect for them; however, he felt everyone could be better at what they do by working together. Mr. Hutchison stated that he had been working with the City for over 40 years and had seen a lot of good changes. He advised that the people working for the City are dedicated, committed, and focused and indicated that he thought that members of Council and staff needed to work better together and respect each other. Mr. Hutchison stated that he always gets excited moving into a new year because it is an opportunity to look back and evaluate what was done well in the past year. He indicated that in City government it is hard to look at the long term. Mr. Hutchison advised that the City’s buildings needed to be fixed sooner rather than later. He stated that he was concerned about the lack of security in City buildings and this needed to be identified and fixed now, not six (6) months or a year from now. In regard to the old library, Mr. Hutchison stated that the choices were to sell it, use it, or rent/lease it. He indicated that this was about leadership and this needed to be done soon. Mr. Hutchison stated that he was very excited about where the City is and where it is going, and that it was about working together. Mr. Cole stated that he agreed with Mr. Hosfelt’s comments about communication and hitting the reset button regarding how members deal with staff. He noted that he has to follow the chain of command in his job. Mr. Cole indicated that it would be good for members to show the support they have for staff and the hard work that they put in from the top to the bottom. Mr. Cole indicated that his number one goal was creating a plan of action for the electric utility and a breakdown of the pros and cons. He explained that, having been on the Utility Committee and discussing the electric utility with Mr. Maloney, Mr. Koenig, and Mrs. Mitchell, he had learned that it is a unique, intricate system that will require some tough decisions. Mr. Cole stated that he felt it was a long-term decision that did not have to be made tomorrow, as had been stated by Mr. Slavin, but it had to be dealt with in the near future, and would affect both the short and long terms. Mr. Cole stated that he felt that the City needed a clear and effective economic development strategy and suggested a possible review of incentives or ordinances to prove support to businesses or economic development. In addition, he stated that in his job and in private corporations, technology is key. Mr. Cole explained that he thought the City needed to make a clear review and prioritization of what technology is needed and then the City should go about achieving the necessary technology advances. In addition, he stated that public service fees were also definitely needed. Mr. Cole stated that he had a personal opinion about Dover Park but was open to all kinds of opinions. He stated that he felt a dog park was needed, noting that he had seen many individuals from Dover at the dog park in Middletown. Mr. Cole stated that he did not know how this would work, noting that in Lewes there is a private/public type of arrangement and membership is required

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 22 at that park, although Middletown’s park is open. He expressed appreciation to staff and everyone who had put in the work during this meeting. Mr. Slavin stated that the electric utility was a very serious economic, utility, and tax issue that touches on a lot of things for the City. In addition, he advised that he thought that the second long term item was that the City was at a moment where members may want to look at a version 2.0 of city government. Mr. Slavin explained that he was not proposing a reorganization or re-engineering, which causes wasted time because people retrench and say why that is not a good idea. He indicated that he would like to see the City focus on what the core services of a municipal government are, why they are provided, and what the value is to the taxpayer. Mr. Slavin expressed the need to be able to articulate what services the City does not provide, because it is a municipal government, not a smaller version of state or federal government. He indicated that a municipal government is expected to do things like make sure roads are paved, the lights go on when people want them to, and the snow gets plowed. In regard to his reference to a version 2.0 of city government, Mr. Slavin stated the need to regain a focus on the City’s customers, not on the bureaucracy. He noted that, although he knew he was guilty of it, he saw it as pervasive that the City put bureaucracy, rules, and regulations before the customer. Mr. Slavin stated that he defined a customer as anyone who lives in the City, comes here to work, pray, play, go to the hospital, or go to the doctor. He noted that the community attracts a lot of people who may live outside the City but are customers and use City services and he thought that the City needed to be focused on them. Mr. Slavin stated that there were two (2) short-term goals that were low hanging fruit that he thought could be done. He noted that a very effective editorial appeared in The Wilmington News-Journal approximately two (2) days ago. Mr. Slavin explained that it was written to the new incoming mayor and listed all of the problems that would be inherited including violence, a heroin epidemic, etc., but suggested fixing the small stuff because people lose confidence in their government when they see the small things are not being done. He stated that knowing there are no clear answers to dealing with the challenge of the heroin epidemic should not pollute the way of making sure the street lights are on, the gardens look good and are not full of weeds, and there is a strategy for taking care of the vacant buildings that the City owns. Mr. Slavin advised members that the City needed to fix the small stuff, noting that the City was no longer in the in economic crisis of 10 years ago and this would be the new world order of how to do things. Mr. Slavin stated that a second short-term goal would be a roadmap for someone who wants to open a business in the City with the exact steps needed. He indicated that he repeatedly hears complaints from people who obtained permits and state that they were not told that they needed to get additional things. Mr. Slavin suggested that people be quickly given a roadmap that expresses thanks for coming to Dover to do business and shows them what they will need. He stated that the process should be more like a game of Candyland, with a clear path with steps forward, rather than a game of Chutes and Ladders, with two (2) steps forward and one (1) step back. Mr. Passwaters advised members that lunch would be followed by two (2) hours of open discussion. By unanimous consent, the meeting recessed at 11:28 a.m. and reconvened at 12:30 p.m.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 23 DISCUSSION (REPORT OUT, VISION, GOALS, STRATEGIC PLAN, ETC.) Mr. Slavin noted that members would not be voting on any items during the Retreat but, based on the discussion, they could gain a consensus of how people felt regarding the importance of issues and what should be focused on. He expressed his thought that at the conclusion of the Retreat, based on the minutes and perhaps a summary document that he and Mrs. Traci McDowell, City Clerk, would work on, a follow-up meeting could be held as part of a Council Committee of the Whole meeting to confirm that what was heard during the Retreat was what was in the follow-up document. Mr. Slavin indicated that work would then begin on the items in the follow-up document, which may involve staff action, ordinances, things that need committee approval, and a determination if they are short-term or long-term issues. He indicated that these items would then be assigned to people and get underway. Responding to Mr. Passwaters, Mr. Slavin stated that the Retreat was an actual session of Council; however, because of the way it was advertised, members could not take action. Mr. Neil stated that what he had heard during this meeting fell into several categories. He noted that one (1) concern was having a map or plan for businesses coming in and those being solicited, so they would have an easy road to get where they need to go. Mr. Neil stated a second concern was long- range planning of electricity, which would affect income, profits, and expediting businesses, who would know that they have dependable rates and light. He stated that all of this would hinge on an overview including a global look at a scoreboard of what the City was doing. Mr. Neil advised that the scoreboard would reflect what actually had been done about the problems, whether big or small, the estimated time for fixing them, and when they were fixed. He stated that problems were very acute because, coming in after the 2015 election, many things were undone. Mr. Neil indicated that having a global vision of what is on the plate would provide managers who are responsible on a day- to-day basis, as well as elected officials, with the ability to see where everyone stands on these issues and whether or not they have been completed. Mr. Passwaters explained that interest-based problem solving is a process of talking about these types of things by simply brainstorming, writing things down, and finding out the interests of every party involved, including the public. For example, he asked what the interest would be in changing what is happening at the utility, not what members want, but what the real interest is and what is driving it. Mr. Passwaters advised that out of this, participants would try to discover the options to satisfy those interests and create a solution that satisfies as many of the interests as possible. He noted that not every issue would be solved, but everyone would do their best. He indicated that this would help to cut through the weeds and get to the heart of the matter. Mr. Hare indicated that, looking at this as the members’ goals, vision, and strategic plan, when he had worked for big corporation houses, the president would ask staff what they wanted to achieve and he suggested that City staff should let members know what their goals are and then members can follow up to determine if those goals are being reached. Responding, Mr. Slavin predicted that staff might work on the things that they think are their goals and then come into conflict with Council; therefore, he stated that this discussion was necessary for members to make sure that when staff says what their goals are, they are in alignment with Council’s vision for the City.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 24 Mr. Hare stated that sometimes when staff presents Council with something that makes sense, members drag their feet and do not follow up or make a decision as to whether they want to proceed with it or follow up, for example, in regard to an ordinance for code enforcement. In response to Mr. Hare, Mrs. Townshend asked whether, in regard to code enforcement, an ordinance was needed but rather or an evaluation and tightening of some of the procedures. She stated that she had discussed this with staff, noting that there were cases when she questioned why a fine was not issued to someone who had repeated an offense many times before. Mrs. Townshend advised that she had been trying to work through the procedural channel rather than having something in ordinance. Mr. Hare stated that he was unsure if this related to ordinances or procedures and that this is what staff would know. Responding, Mrs. Townshend stated that she agreed and that she and Mr. Tim Taraila, Code Enforcement Supervisor, needed to discuss this. Mr. Hare suggested changing the ordinance or procedure so that someone who was given two (2) chances would not get a third chance but would be fined. Responding, Mrs. Townshend stated that staff could work on the procedure and bring it forward to the Council Committee of the Whole. Mr. Hare indicated that some of the Code Enforcement staff had stated that they are frustrated that they can only give another warning to those who repeat offenses over and over again and that people have learned to skirt the system. Mr. Cole advised that one of his goals related to developing a clear economic development strategy and using incentives and ordinances to support that. He asked if reviewing ordinances to make sure that they are friendly was too large of a task or if this was something that could be undertaken. Responding, Mrs. Townshend explained that staff had done quite a bit of this, and noted that there were two (2) components to this issue, the ordinance component and the internal processing of paper. She advised that staff had spent a number of years focused on meeting with the business community and revamped major sections of the Zoning Ordinance. Mrs. Townshend stated that a lot of things that used to go to the Planning Commission can now be done administratively. She noted that a lot of the commercial zones were changed to make them more flexible for users; however, more needed to be done. In regard to the internal processing of paper component, Mrs. Townshend advised that the front office should separate the easy things that should have a one (1) to two (2) day turnaround from those that would take more review, and she had discussed this with Mr. Koenig. She stated that staff had been looking at how they process paper through the LEAN process and taking out steps. Mrs. Townshend indicated that a number of things that were formerly reviewed by the Planning Office are now reviewed by the front office. She explained that staff had tried to streamline to some degree; however, she stated that she felt that more needed to be done and discussions could be held but the stakeholders would need to be brought in. Mr. Slavin expressed concern about the granularity issue of the current discussion, stating that there had been talk about big concepts, and the discussion then jumped into ordinances and issues at the counter. He indicated that if the discussion continued in that way, everyone would feel dissatisfied at the end of the day because they did not get anywhere different from where they started out in the morning. Mr. Slavin advised that it is difficult to develop a strategic plan for the City’s organization because staff, not Council members, are full-time employees. He indicated that members could help to create

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 25 the vision, some of the themes in the vision, and suggest some of the activities they would like to start seeing in the vision, and then ask staff to develop goals around the vision and those areas. Mr. Slavin stated that he had heard the theme of the overall fiscal health of the organization in the discussion. He noted that this was not just about saving money, cutting budgets, and doing more with less, but the near-term and long-term fiscal health of the organization. Mr. Slavin advised that Council’s fiduciary responsibility was to leave the City a little better than they found it. Mr. Slavin stated that a second issue was core services and expressed the desire to look through a new lens to define what the City’s core services are and what they are not. He advised that the City had gotten into some rocky places by not being able to articulate what its core services are not. Mr. Slavin stated that he thought that the City just needed a clear way of articulating the areas where the City does not want to go. Mr. Slavin stated that a third issue was customer focus, noting that Mr. Sudler, Mr. Anderson, Mr. Neil and others had expressed this. He indicated that the statement from Council was that they are concerned about the bureaucracy-centric approach of the City’s government and want to turn this around, make it more customer-focused, and develop some goals around this. Mr. Slavin advised that a fourth goal was communication on all frequencies and channels. He indicated that a business road map and letting people know how to navigate were clearly communication issues. Referring to Mr. Neil’s comments regarding a scoreboard, Mr. Slavin stated that this request hints that nine (9) individuals are left to find the same information sometimes nine (9) different ways, or the same way nine (9) times, and burdening the City Clerk's Office or whoever else they are trying to find that information from. He suggested looking at ways to better enable information to be pushed out to Council members on project updates. Mr. Slavin indicated that one (1) of his frustrations is that approximately 85% of the time when he receives a constituent complaint and gets it into the hands of the right person who can solve it, he does not hear what the conclusion was unless he hunts the information down. He advised that this would be an easy problem to fix that would not require creation of a new piece of software, etc., but everyone needs to accept the fact that the City will communicate with its customers and double back to copy somebody on an email so that they know that an issue is closed out. Mr. Slavin advised that the themes that he heard were fiscal health, core services, customer focus, and communication, stating that this was open for debate, and members could add or take away from these. He indicated that if these themes were identified coming out of this discussion, and if some of the other ideas were put underneath these themes, members would have the makings of something and feel like they had some traction. Mr. Passwaters agreed with Mr. Slavin’s comments, stating that communication is basically education and would involve communicating to people what they must do to build a house or start a business. He stated that this was a primary focus and questioned how to streamline the process and make it easy for people to come to Dover and work, live, play, pray, and whatever they want to do. Mr. Passwaters expressed the goals of staying focused, knowing the track, and trying to come up with something at the end of the Retreat.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 26 Mr. Anderson indicated that the City does need to operate and members should not leave out some of the fundamental areas that needed to be addressed, for example, public safety. He mentioned technology issues as well, stating that this would impact communication with the public. Mr. Anderson indicated that the City was not communicating with the public as well as it should in some areas, and the public sometimes does not know how to communicate back to City government. He stated that technology would impact communication, public safety, and other areas of concern. Mr. Anderson suggested that, in discussing upgrading technology at a staff level, there was a need to begin with what members want to accomplish in order to know the type of technology upgrade that is needed so that money is well spent. He stated that strategic planning was needed on how to make technology serve the people and make the City more efficient and competitive. Mr. Passwaters stated that interest-based problem solving, which he had mentioned previously, would solve a lot of these issues. He asked how Council makes decisions as a unit. Responding, Mr. Sudler stated that there is discussion and members vote. Mr. Passwaters asked if a motion is carried when four (4) members vote against it. Responding, Mr. Slavin explained that some motions require a super-majority. Mr. Hare also noted that the Mayor has veto powers. Mr. Passwaters explained that he uses interest-based decision-making in negotiations and encourages it in city council chambers, departments, and police departments all over the State. He advised that if there is an issue that needs to be addressed, they vet the issue through finding out what the interests are, getting all those things whittled down, and everyone then talks about it but does not vote. Mr. Passwaters noted that in a concert, everyone sings in the same key, and the same should be said about City Council. He stated that when members go out in public, everyone should be saying the same thing; there should not be five (5) members saying that they voted for something and the other four (4) saying that they hated it, did not vote for it, and did not like it. Mr. Passwaters explained that with this process, there is not a vote but individuals say that they will support something 100%. He noted that if someone is not in love with a decision, they may say that they were not in love with it but that they got as much as they could for the constituents in their part of the city, and when they leave the room after making this type of decision, they will not pooh-pooh it, shoot it down, or punch holes in it. Mr. Passwaters noted that they may indicate to their constituents that they were part of the nine (9) people who decided for the City that this was the best they could do and that they would support it. He asked members to imagine how wonderful it would be if every city council and every town sang in one (1) key, noting that the beauty of the process was that it eliminates a lot of undermining. Mr. Passwaters encouraged members to sing with one (1) voice when they walk out the door. He reminded everyone that the first thing he had asked at the beginning of the meeting was who had the good of the City of Dover in their hearts, and everyone had raised their hands, and this should be foremost in everyone’s thoughts. Mr. Sudler advised that he would like to see a goal of implementing a database where Council members could go online and review constituent or customer concerns about any department, see the time tracked, a description of the concern, and what department addressed it. He stated that members could then communicate more effectively with the department head in regard to these concerns. Mr. Sudler felt that a database would be a good tool in communicating with departments so that no one would be viewed as interfering with a department head. He indicated that Council members want to convey and care about their constituents’ concerns and may become overactive or

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 27 overstep their boundaries, stating that he had done this himself. Mr. Sudler noted that members were not trying to be rude but wholeheartedly care about these concerns and want to get them addressed. Mr. Passwaters stated that members attain their office by being elected, and this is why members care, want to hear their constituents, and want them to know that they are doing the best they can for them. Responding, Mr. Sudler noted that constituents from other districts may come to him as well. Mr. Passwaters stated that members need to remember that the City is a whole that consists of multiple districts, all of which have a say. Mr. Hosfelt stated that he loved Mr. Neil’s idea about a scoreboard, which Mr. Hosfelt likened to a checklist. He advised that he was used to checklists, stating that a checklist would make it obvious to staff what members expected, voted for, or had approved in the budget. Mr. Hosfelt indicated that staff could then develop that scoreboard, which would show what members had voted on, what had been approved, and what was important to them. He stated that this would allow members to know when benchmarks are reached and how things were going as a group. Mr. Hosfelt advised that he was amazed and very impressed by the fact that everyone was pretty much on the same page with their goals and what they thought was important, noting that they were just trying to get there from a different direction. He stated that four (4) or five (5) members thought Dover Park was an important issue and others had talked about public safety fees and different things. Mr. Neil stated that members do not operate in a vacuum and, because of this, five (5) to four (4) votes would occur. He indicated that staff brings issues to Council using existing laws and, for example, in regard to a building that should be demolished, they show members photographs, evidence from inspections, and all kinds of material. Mr. Neil explained that a constituent may come in stating that they want more time to take care of it, and Council has flexibility in that regard. He stated that the idea is to get rid of dangerous and derelict buildings so the City can move forward, and there will be differences of opinion. Mr. Neil noted that someone may want to be given more time and a chance, and sometimes staff indicates that an owner promised to do something within a specific time period and they did not. He indicated that sometimes there has to be a division of opinion. Mr. Neil stated that members must look at the law, take into consideration the human factor, and make a decision, and noted that he did not like slum lords and people who take money from someone and put them in a building that is unsafe. He indicated that, on behalf of the citizens as a whole, it is up to Council to take the vote in a certain direction. Mr. Passwaters stated that differences in opinion were one (1) of the healthy things about being in a democracy. As a member of the community viewing government from the outside, rather than a member of a city council, he stated that he knew that the people governing his city have healthy discussions and have the same concerns as those expressed by Mr. Slavin. Mr. Passwaters indicated that, looking around the table, it was amazing how much everyone was alike. He noted that he lives in Milford most of the time and would like to know that the members of his council will support each other because this means they are supporting the city where he lives. Mr. Hare stated that when he joined Council in 1991, former Councilman Francis Weyandt advised him that when he was on the Council floor he would not agree with everyone. He indicated that

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 28 Mr. Weyandt would fight like a bulldog for something he wanted; however, if the vote did not go his way, when all was said and done, he would walk out and it was forgotten. Mr. Hare commented that there was no social media back then, and today people will post on social media if they think things should have gone differently. He stated that he felt that members should not do that, explaining that something may not go the way someone had hoped; however, it was voted on and decided. Mr. Hare advised that he was not suggesting that members curl up and die; however, they should indicate their support for what was decided. He stated that this would be good for constituents and staff. Mr. Slavin stated that he agreed, but noted the irony that everyone was being asked to agree regarding differences of opinion. He stated that every vote would not be nine (9) to (0); however, in their heads members would vote nine (9) to (0) to accept it. Mr. Slavin indicated that this was not just about social media but about the way the country now operates in the public sector and what public discourse had become. He stated that this was not endemic to the City of Dover, Kent County, or Delaware but was everywhere. Mr. Slavin advised that people now disagree very publicly and personally, noting that as much as he appreciated what Mr. Hare was saying, he was not sure that this goal could be reached. Responding, Mr. Hare stated that currently if a disagreement exists between two (2) gentleman, they make sure that it is in the paper, people know who agreed on the matter and who voted against it. Mr. Anderson advised that he personally disagreed with the entire philosophy being discussed. He stated that a member may not be able to achieve the number of votes needed, but the people would then just feel that their interests were being disagreed upon. Mr. Anderson indicated that this would not necessarily be the end of an issue, stating that the member may then build a new majority of members, which could be a majority of the same members. He stated the need to make sure that the people and their interests are heard, and this is done by communicating with the public. Mr. Anderson advised that he did not believe that the objective being discussed was worthy, stating that Council has to operate in a different way that says the public matters. He advised that there would be differences of opinion and everyone has a right to feel represented, although this did not mean that members should attack someone. Mr. Anderson noted that the nine (9) members could not make enemies of anyone, because the person they disagree with so strongly on one (1) issue may be the person that they will need to stand beside on another. He expressed the need to separate personalities and people from issues and disagreements by stating what is essential. Mr. Anderson indicated that it was important to the process to have healthy discussions and differences on issues, but there was no need to attack people and destroy reputations. Mr. Cole noted that the goal of the Retreat was to walk away with visions or goals and that members had agreed on several issues and the following topics were identified: Fiscal Health I. Study Electric Future in Dover - 2 Years A. IRP B. Staff, Experts, and Customers C. Rate Modernization (All Utilities)

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 29 II. Maintenance Tax Increases III. Fees IV. Economic Development A. Comprehensive Plan B. Business Retention C. Promotion of the City V. $$ Plan VI. Staffing? Communication I. Transparency II. Pathfinding III. Technology IV. Citizen Survey Core Services I. Citizen Survey II. Customer Focus Ethic III. Parks and Recreation IV. Utilities V. Public Safety VI. Infrastructure VII. Restructure/Streamline Departments Mr. Neil stated that the future of electricity was a long-range issue; however, studying this with staff members, elected members, and outside experts was something that must be done now. He suggested that a recommendation be made to City Council within the next two (2) years regarding the future of operating electricity in the State of Delaware. Mr. Slavin suggested that the future of electric be nested under the heading Fiscal Health of the City, stating that electricity was a big component to fiscal health; however, there may be other things in this broad category.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 30 Mr. Anderson suggested including, in addition to staff and experts, some of the City’s commercial/industrial customers in this discussion. Mr. Cole asked if there would be a better timeline than two (2) years for this issue. Responding, Mr. Maloney indicated that he had previously discussed Integrated Resource Planning (IRP) with Council, noting that this is not an overnight process and staff had started it in late summer or fall. He explained that this would involve obtaining customer input, and staff was gathering information to discuss. Mr. Maloney noted that some of the discussion had been whether the City would be in or out of the electric business or parts of the electric business. He indicated that he was doing an IRP for future growth and generation, and the business decision about whether the City would be in or out of generation or of electricity completely was further along in the process. Mr. Maloney stated that these were big discussions with potential consequences that could be good or bad, some of which could occur immediately once the public discussion starts. He noted that this matter must be fleshed out. Mr. Hutchison stated that in the first three (3) or four (4) months of this year, Council would make a decision on generation. He indicated that a study would come back with a recommendation about Units #1 and #2 going offline. Mr. Hutchison noted that members would make a decision in a short period of time about where the City goes with generation, not two (2) years from now. Responding, Mr. Maloney stated that the IRP related to this, explaining that he had a pretty good process planned about how to fulfill the future energy needs of the utility. He noted that time may be needed to digest what President Donald Trump does, as this would be a big factor. Mr. Anderson stated that the whole regulatory environment was going to change, and Mr. Sudler noted that this would depend on Congress and the Senate. Mr. Maloney stated that he agreed that this issue could not wait two (2) years and there must be a shorter term. Mr. Koenig indicated that another issue that had been mentioned was rate modernization and changing rates based on what is happening in the industry in the electric utility, as well as water and sewer. He advised that electric customers were going solar; however, their demand changes if they turn off their solar or experience bad solar days. In addition, Mr. Koenig indicated that there would be a technology modernization issue with respect to potential automated metering and things like that, in the next one (1) to four (4) years. He stated that the electric utility discussion was complicated and involved questions such as whether the City would be in the generation and distribution business, or just stay in the distribution business. Mr. Koenig advised that anything that would require the City to maintain the electric utility would equate to a rate modernization at some point in the one (1) to four-year range. Mr. Slavin indicated that the reason he suggested placing this item under fiscal health was because the specter of taking $10M from the electric utility to offset the expenses of general government would become less and less viable over the next 10 years. He advised that the City was at risk of not having $10M to take from the electric utility, noting that customers could not just be charged more based on overhead because of bond covenants. Mr. Slavin stated that this would mean a gap in the General Fund that would have to be closed with other revenue sources. In addition, he explained that

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 31 the value of the electric franchise may be close to entering its highest phase right now because it was getting more complicated and expensive to run, while the infrastructure was aging at a loss. Mr. Slavin noted that those were the issues regarding the future of electricity and indicated that he wanted to leave the discussion regarding this topic for now, rather than getting lost in all the details. Mr. Koenig stated that fees versus taxes had been discussed and questioned if Council was willing to entertain small maintenance tax increases for citizens, not on an annual basis but on a more regular basis. He stated that coming in $2M short would amount to an extensive tax increase. Mr. Koenig noted that, in recent years, there had been reluctance to talk about tax or fee increases; however, as the workforce had shrunk, he and members of Council had felt there were problems in service delivery. He stated that adjustments could be made to fix the problems, but people or resources must be in place to fix them, and the City could not keep cutting the budget and still maintain the level of service. Mr. Koenig explained that in some cases the budget had been cut, the service level had fallen, money had been added back, and then there was a need to go back and redevelop staff. In regard to budget development, he asked if there was a tolerance for maintenance tax increases less than a certain amount for which staff could provide substantial arguments. Mr. Koenig indicated that the alternative would be crashing the plane every few years and developing a level of panic that there was not enough money to do operations. He expressed his preference for a maintenance increase and asked what criteria Council would accept from staff, for example, for a request for a penny-and-a-half increase with a statement of where the revenue stream would be targeted. Mr. Passwaters noted that he had heard pathfinding mentioned previously, for example, those who obtain a permit and then may be fined a month later because they did not get some other permit. He questioned who makes decisions on issuing permits. Responding, Mr. Hare stated that it would depend on the type of permit, noting that the Planning and Inspections Department would handle business construction permits; however, a permit regarding parking on a race weekend would be handled by Customer Service. Mr. Anderson stated that permits are not all issued from one (1) area. Mr. Passwaters commented that this approach was piecemeal. He advised that he had run an organization that was billing $4B per year and asked what the City of Dover budget was. Responding, Mr. Koenig stated that the City of Dover budget was approximately $138M. Mr. Passwaters stated that he told those in his organization to make decisions, noting that as long as they were not drilling below the waterline, the boat would not sink. He indicated that it may be something as simple as using this approach when talking about permits and encouraged pushing decisions down to a level that is as low as it can go without drilling below the water line. Mr. Sudler suggested adding transparency as a topic. Mr. Anderson stated that communication would include pathfinding, transparency, etc. Mr. Cole advised that approximately six (6) or seven (7) people had mentioned items under communication, and every department, from the Police Department down, had mentioned technology. He suggested a review of all technology needs and updates and that they be prioritized, stating that this is done in State government. Mr. Passwaters suggested placing technology on its own line and then branching out from there to discuss needs, how to pay for it, and how to make it pay for itself.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 32 Mr. Slavin suggested adding a discussion of core services as another big topic. Mrs. Townshend stated that the core services issue was mentioned several times by Council members. She explained that the issue of homelessness affects quality of life in the City on a number of levels, and it affects the Library, the police, and trying to revitalize downtown; however, it is not one (1) of the City’s core services. Mrs. Townshend indicated that some people expect homelessness to be the City’s job and, although it is not part of the City’s core services, it is creating challenges for the City. Mr. Passwaters observed that the homelessness issue was forcing its way in. Responding, Mrs. Townshend indicated that he was correct; however, she explained that the City simply cannot take it on as a core service. Mr. Passwaters stated that he agreed, noting that social services for those who are troubled and need a home or a place to stay are handled by the State, and the City has to be able to tell them that. Mr. Anderson stated that this was somewhat backwards because things such as homelessness should be local, and federal involvement should be small. Mr. Koenig advised that a uniform policy statement or posture must be developed for referring people elsewhere for assistance. Mr. Passwaters relayed an incident when a county had an issue about what to do with the homeless who showed up at the library. He advised that the library staff was very accommodating, did not want to hurt anybody’s feelings, and wanted people to be safe. Mr. Passwaters explained that the library communicated to the public in the paper that if they had a family member who was homeless to please try to help them, stating that the library would do their best but it was up to the families to do their best, too. Mr. Passwaters stated that it was a nice, well-spoken piece about how to take care of your own. He estimated that 80% of the homeless have people who know that they are there, and someone has to make them accountable too. Mr. Passwaters advised that this public information helped to stem the tide, and it was mentioned that the library was becoming overwhelmed with people who were looking for help. He noted that charity begins at home. Mr. Hudson asked how to address this type of issue when it looks like close to a majority of the population are not even from the State, but have come from other places because they thought or heard that life and their situation would be better here. He noted that he had met people from South Carolina and a woman who had moved from New York to Florida and then to Dover. Mr. Hudson indicated that they were from all over the map and their families probably have no idea where they are. Mr. Koenig advised that the City had paid approximately $15,000 per year to a third party to do a citizen survey. He stated that a group of questions was selected about all types of service delivery, and a company came and took the temperature of the community as to how the City was doing. Mr. Koenig stated that a survey had not been done in a long time and he was sure that everybody had felt it was worthwhile. He indicated that the City does not always hear from a broad group of people and sometimes makes decisions based on input from a relatively small population of those who are squeaky wheels. Mr. Koenig asked if Council was interested in developing a proposal to go back to that citizen survey for the FY 18 budget or if they felt there was enough feedback without using an independent survey.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 33 Mr. Anderson stated that it had been mentioned that the City could find ways to communicate with people and get more input. He noted that a survey would be one (1) way to do so, and there may be other ways. Mr. Anderson advised that it would not just provide input on ideas but feedback on how the City is delivering services, before potential problems become so big that they are in the papers and the City has to deal with them. Mr. Neil reiterated his suggestion of a scoreboard. Mrs. Townshend stated that the citizen survey mentioned by Mr. Koenig was done for an International City/County Management Association (ICMA) affiliate, and one (1) of the good things about it was that it would measure from year to year, so improvements, stagnant areas, and areas of drop-off could be seen. It was her recollection that the survey enabled the City to compare itself to other municipalities of the same size and was effective in reflecting the City in a way that current information does not provide. Mr. Cole and Mr. Anderson expressed support for this idea. Mr. Passwaters noted that the importance of customers had been discussed and suggested that a survey would be a good way to know how the City is doing; however, he cautioned that the City might not like the responses. He indicated that in the business he had mentioned previously they did a routine survey and they also explained what they were providing to their employees, noting that the employees were also customers, in addition to the true customers. Mr. Passwaters stated that they communicated information on where and what the costs were, what was happening, and what they were doing. Mr. Slavin advised that the City stopped doing the survey because complaints were received that it was too expensive. Mr. Koenig stated that Mr. Slavin was correct, noting that it had been indicated that the survey was a waste of $15,000. Mr. Slavin stated that $15,000 was spent to get dispassionate, impartial information and, at the first sign of trouble, it was shut off. Mr. Hare advised that surveys are good; however, he stated that it was incumbent on each Councilperson to know the issues in their district. He indicated that he takes a week or two (2) each year to knock on doors and talk to people. Mr. Hare stated that he has a pretty good idea of the main issues that people in certain neighborhoods are upset about, noting that this is also customer service. He advised that he hears about the Library, people working on cars in their driveway, and people blocking things, etc. In regard to the customer service focus in the City, Mr. Hare asked whether too much was being placed on one (1) person, if one (1) person was trying to cover two (2), explaining that he thought that there were a lot of things that needed to be looked at this way. Mr. Slavin indicated that his suggestion about customer focus was more of an ethic that he would like to see instilled across the government. He stated that some areas are very good at it and some are lagging. Mr. Slavin noted that his wife used to run a business and used to tell him that there were two (2) times when a customer is right, day and night. Mr. Hare advised that when he had a business on the side, he felt that customer service was an attitude, not a department. He stated that he thought the customer was not always right, but they are always the customer. Mr. Slavin noted that the City’s customers cannot choose another provider.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 34 Mr. Passwaters relayed a story about a department store customer who wanted to return a tire because they were not happy with the performance and it did not wear as long as it was supposed to. He stated that the employee explained that they could not do this, and the department head came in and asked the customer the cost of the tire. Mr. Passwaters advised that the customer stated that it cost $125 and asked for the full amount, even though half of the tire’s life had been used, and $125 was refunded. He stated that the beauty of the story was that the business did not even sell tires. Mr. Passwaters stated that rule #1 is that the customer is right, and when the customer is wrong, refer back to rule #1. He advised that the best and most successful organizations in the world adhere to that rule. Mrs. Townshend indicated that she agreed and that staff really works to have a customer focus; however, the challenge is that in some cases the Code is clear. She stated that when the customer states that they should not have to do something, staff cannot simply dismiss the Code. Mrs. Townshend indicated that the City is different in that it is a utility provider and if customers do not pay their bills, the City is a regulator on the building side. Mr. Passwaters agreed that it is different if there is a Code, and things must be weighed. He noted that those who decide to live in the City must adhere to an agreement. Mrs. Townshend stated, for example, that staff hears people say all the time that they do not want to get an architect because architects are too expensive. Mr. Anderson observed that one (1) person cannot be made happy at the expense of 20 others who would be affected; however, he stated that this overall attitude of finding ways to satisfy needs was the correct attitude and the City would do well if it operated in that attitude. He noted that there is usually a way to collaborate and solve a problem. Ms. Marney stated that she performs customer service every day, and although the customer may not always be right, a way can always be found to spin it around. She indicated that staff may not be able to do what the customer asks but can tell them what can be done through policy. Ms. Marney explained that if a customer cannot pay their bill today because they do not get paid until Friday, a compromise can be developed, and they can be told that they must pay their bill down to zero (0) before the next bill comes out. She expressed the need to listen and hear what people are saying and not be so stringent and insist that customers do something. Mr. Passwaters asked if Mrs. Townshend’s comment about the need for an architect related to communication, and if the individual should have been told up front when they got the permit that an architect must be used. Responding, Mrs. Townshend explained that, at that point, the individual would not yet have a permit. Mr. Passwaters suggested advising the customer that the City would love to have them build, but that the requirements were part of doing business in the City, and ending the conversation. Mrs. Townshend advised that code enforcement may cite someone, who may come to them with a hardship, explaining that they were given 30 days to comply but that they will need three (3) months. She advised that if it is not a life safety issue, staff typically extends the deadline. Mrs. Townshend indicated that there will then be another unhappy customer who says that they called in a complaint

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 35 and the City did not do anything about it. She advised that staff tries to work with people, treat them with respect, and listen. Mr. Cole noted that another suggestion was some type of review of the Comprehensive Plan that would allow for strong clear economic development. Mrs. Townshend noted that the Comprehensive Plan was one of the Planning Office’s projects for the year and that an update of the plan is required every 10 years. She stated that the economic development chapter of the plan needed more meat on it, and she had started putting together an outline of it. Mrs. Mitchell noted that during the Economic Development Committee’s first meeting, Mr. Hudson had asked if a mission, strategy, or statement had been developed. She stated that she did not believe that an answer had been given regarding what the strategy and mission are and asked if this was in the current Comprehensive Plan. Responding, Mrs. Townshend stated that the current adopted economic development strategy is in 2008 Comprehensive Plan; however, it was dated and needed more economic analysis. She indicated that a pie in the sky wish list was included that needed to be connected to the market. Mr. Anderson noted that the whole world had been different in 2008. Mr. Passwaters asked if the Comprehensive Plan is reviewed during the ten-year period or if staff waits until the ninth year to begin developing it. Responding, Mrs. Townshend explained that the Planning Office uses the Comprehensive Plan every day and it is a living document. Mr. Anderson commented that the Comprehensive Plan can be modified and updated; however, there must be some predictability and stability to it because when a business is planning how they are going to invest their money, they have to know that everything is not going to suddenly flip on its head in the next year. He noted that things can change every two (2) years with the election. Mr. Anderson advised that the point of the Comprehensive Plan was to be a living document but to also give some certainty. Responding to Mrs. Mitchell’s comment about economic development, Mr. Hudson advised that if everyone in the room was asked for a definition of economic development, there would be different answers. He noted that some people he had talked to think that economic development means workforce development and that the City should be contributing money to help educate and train people for jobs in the future. Mr. Hudson asked members if that was economic development. Responding, Mr. Anderson advised that this was part of economic development. Mrs. Townshend indicated that this was not part of the City’s core services. Mr. Anderson stated that he disagreed with Mrs. Townshend, explaining that part of the City’s core responsibilities was developing public-private partnerships. He noted that if a partnership was developed, Goodwill has a great plan in this regard, and he also suggested the MLK Center at Delaware Technical and Community College and the Dover Public Library. Mr. Anderson stated that there are ways that the City can coordinate this, and he expressed his belief that part of the City’s role was to coordinate and be the hub; however, it was not the City’s job to do everything. He expressed the need to coordinate what is being done and line up a comprehensive strategy, so that businesses have a good workforce, which is one (1) of the things that they look for. Mr. Sudler acknowledged the presence of Mr. Reuben Salters, former City Councilman, Fourth District, and asked for his thoughts about economic development. Mr. Salters advised that economic

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 36 development was a combination of things and an integrated approach was needed. He indicated that it is not just about building buildings and bringing plants in, noting that it is important to talk to people about what good the building will do for the general population and the community beforehand. Mr. Salters stated that economic development should benefit the community positively and the general population needs to know this. He advised, for example, that if Kent General wanted to put another wing on the hospital, this would benefit everyone. Mr. Salters stated that it was about more than just getting a job for someone, questioning what good a job would do if that person takes the money and spends it on drugs. He advised that this matter was complicated, like life. Mr. Salters stated that economic development must be well thought out, anticipated, and the sum of a team effort. He indicated that Dover was a great City, and in communicating with the people about what the City is doing, good results would be seen. Mr. Passwaters asked how long the City had nine (9) councilpersons, and Mrs. McDowell responded that it had been since approximately 1987 or 1989. She stated that the City was incorporated in 1829. Mr. Passwaters expressed his belief that there were not nine (9) councilmen in 1829, and Mr. Anderson advised that there had been eight (8) for a long time. Mr. Passwaters stated that economic development means growth for the City, which stereotypically means growth through annexation, although it does not have to be. He noted that economic development and growth can mean taking an old building and refurbishing it to use it in a different fashion. Mr. Anderson indicated that economic development was about economic prosperity for citizens and businesses. Mr. Salters advised that currently economic development in Dover was giving a tenant or someone who wants to start a business two (2) or three (3) years of rent, which is what it takes to get someone established, and no taxes. He stated that the City does some of this now. Mr. Salters indicated that this would encourage young people who have limited resources and are trying to get started to come to the City. He advised that it would be good if a business takes off and if it does not, someone would have made money on it. Mr. Passwaters advised that this would be considered as a possible solution when discussing the details of economic development. Mr. Cole suggested that parks and recreation would be a core service. He noted that cleaning up the parks had been mentioned, five (5) or six (6) people had mentioned Dover Park, and Mrs. Townshend had mentioned the ball park. Mr. Anderson stated that the soccer fields should not be forgotten, and Mrs. Townshend advised that a plan in this regard should be coming to members in the next couple of months. Mr. Anderson brought up lacrosse as well, and Mrs. Townshend stated that there would be multipurpose fields. Mrs. Townshend stated that public safety would be a core service. Mr. Neil suggested looking at the ambiance that the City provides when considering economic development, such as the phenomenal Library with its many marvelous programs at no cost, as well as the attractions of area parks, such as Schutte Park. He stated that this involves creating an

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 37 environment that is good for families and for people coming in. Mr. Neil stated that area colleges, such as Delaware State University, Wesley College, Wilmington University, and Delaware Technical and Community College, are part of the ambiance and offer expertise for those who want to have businesses in Dover. He indicated that he had served with Kent County Tourism and they had discussed the quaintness of the area, The Green, and all the museums, which creates a marvelous environment to bring people in, not just for the City but also the realtors. Mr. Neil indicated that cohesiveness is needed in terms of economic development, and the City does not need to have services but needs to know where to point people to sample everything that is available in the 250-mile area. He pointed out other attractions, such as Prime Hook, hunting, fishing, and nature that may not be in the City but are close to it. Mr. Neil stated his belief that the City has to capitalize on these things when discussing economic development because they are the reasons why a business or plant would open here, noting that the electric rates were also pretty good. He commented that Dover is a great place to live. Mr. Sudler asked if any of these topics were being discussed by the new Economic Development Committee. Responding, Mr. Koenig advised that the only thing that had been discussed was the overall strategy during the first one (1) or two (2) meetings of the Economic Development Committee. Mr. Hudson commented that part of economic development is branding and advertisement, which makes someone want to come. He indicated that there was no brand right now, stating that many different things could be pointed to that make coming to Dover nice. In response, Mrs. Townshend advised that the City’s branding was “Historically Happening.” Mr. Koenig stated that this was done by the Downtown Dover Partnership, and Mrs. Townshend indicated that it applied to the whole City. Mr. Hudson asked whether the branding was just known about here and how to get people from other places to want to come and check Dover out. In response, Mrs. Townshend indicated that this needed to be used as a promotion. Mr. Neil stated that core services include having a dependable transportation system and good roads, electric, and water, which helps individuals to recognize that their Councilmen care. He noted that this is evident by how constituents react when members receive a direct complaint, and whether other Councilmen are pulled in. Mr. Neil expressed his belief that the City has competent, good, and professional staff. He reiterated the need to make sure that what is started gets done and reaches fruition, and to know that the problems are resolved at a particular time. Mrs. Hawkins stated that often when people talk about economic development they are referring to bringing business to the community, noting that this generates revenue. She advised that if a huge industrial organization is brought to the Garrison Tract, for instance, there will be a need for people in the community to be employed by that organization. Mrs. Hawkins pointed out that a younger generation may be looking for enhanced programing at the Library, better parks, or a dog park. She questioned how to get the appropriate staffing into the community to support the businesses being brought in. Mr. Anderson questioned what the point of economic development was. He stated that one (1) approach would be used if the point was to benefit the people here and to change and bring more prosperity, so that downtown is not in the current condition in 20 years. Mr. Anderson advised that

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 38 if the point was just to have a scorecard to say how much investment was brought in, there would be a different approach. He expressed the need for both approaches. Mr. Sudler questioned how the City could retain businesses. He referred to Mrs. Hawkins’ comments about being able to provide businesses a customer base; however, he also noted the need to get the community to know that the businesses are there and to give new businesses the incentive to hire locals. Mr. Passwaters referred to Mrs. Hawkins’ comments that if a big facility is built, there is a need to make sure there are people who can work there, as well as Mr. Neil’s comments about the benefits of the area, such as Prime Hook National Wildlife Refuge and events at The Green. He referenced the old adage that if one builds a better mousetrap, people will beat a path to the door. Mr. Passwaters advised that if a good business is built, or if big business comes to the City, people will flock to work there, but they will want to be assured that they are in a vibrant city. He suggested massaging the things that make it easy or at least comfortable for a business to come to Dover. Mr. Passwaters stated that the discussion was about promoting the City, through branding and advertising or focusing on “Historically Happening.” He indicated that if this is done, Dover will continue to be a healthy city. Mr. Hare indicated that there were two (2) parts to economic development. He stated that some smaller businesses were opening in Middletown and that Dover could attract them as well. Mr. Hare advised that some of the bigger businesses, like Amazon, do not really care about being accessible to Prime Hook Beach or Rehoboth; however, they want to be somewhere that is accessibility to Routes 1, 95, and 301. He explained that they are not going to build where they do not have a workforce and they will check that out. Mr. Hare stated that small business and big business are two (2) different parts to economic development. He indicated that stores, like Ross, just opened in North Dover, noting that they do a demographic study regarding what they will attract, and they have a customer base and do not need 300 to 400 employees. Mr. Hare stated that these businesses come here because of the central location. He advised that manufacturers are looking at highway accessibility, economics, and things like that. Mr. Passwaters stated that this related to why Walmart built the distribution center where they built it, noting that he had talked to them five (5) years before they broke ground. He explained that Walmart had talked about Sussex and New Castle counties. Mr. Passwaters indicated that they planned to build in Delaware but built in their current location because they did their homework and knew where there was property and a favorable tax incentive. He stated that Walmart knew that Smyrna would have to do some things regarding roads, etc. Mr. Passwaters advised that having a location close to things like Prime Hook happened to be a benefit to the employees who work there. Mrs. Townshend stated that there would be a lot of economic development discussion when working on the economic development strategy for the Comprehensive Plan and noted her expectation that the Economic Development Committee would be the lead group to focus on that. Mrs. Townshend advised that economic development is all of the things that had been discussed, including looking at the market and the infrastructure, how to make it all come together, and what is realistic versus pie in the sky.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 39 In regard to economic development, Mr. Sudler suggested addressing railroad transportation from Wilmington to Dover. He stated his belief that there had been some talks about this between the City and NCALL. Mr. Sudler stated that this would help with job opportunities, whether Dover constituents go elsewhere or others come to Dover, and he expressed a need to implement a transit situation. Mr. Slavin indicated that this was a very healthy discussion that he did not want to interrupt; however, he stated the desire to reserve time for discussion about a customer focus ethic. Mr. Hutchison suggested, when looking at economic development, that consideration be given to businesses like Calpine. He stated that the only way this type of business would come to Dover would be if the City was working in partnership with Kent County Levy Court and the State of Delaware. He explained that it costs major dollars to bring large corporations and businesses to a city. Mr. Hutchison stated that promoting economic development was about partnership between government agencies, sometimes including the federal government. Mr. Hutchison advised that economic development is first and foremost about protecting existing jobs every day, and secondly about looking for new opportunities. He stated that when he served as Mayor, he and Mr. Jim O’Conner, former City Manager, went to every major company in the City to thank them for being here and to ask if there was something the City could do. When visiting Scott Paper, the plant manager advised them that Scott Paper was getting ready to spend $100M over the next four (4) years on the plant, and Mr. Hutchison and Mr. O’Conner felt that they did not have to worry about Scott Paper. He explained that 90 days later this company was gone, noting that the plant manager did not know what corporate was doing. Mr. Hutchison urged members never to assume that what is here today will be here tomorrow and reiterated the need to protect the jobs that are here. Mr. Hutchison suggesting adding a finance plan to the list, noting that the things that were listed were wonderful; however, a plan was needed to pay for it all. Mr. Anderson noted that an infrastructure was a vital item that had been omitted from core services, stating that this would include streets, piping, electric wiring, and communications infrastructure. Mr. Sudler also suggested curb appeal. Mr. Slavin expressed the desire to talk about a customer focus ethic, which he stated was not about reorganization or re-engineering. He stated that he wanted the City to focus on getting back in the business of putting the customer first in its government dealings and everything that it does. Mr. Slavin relayed that his mother was recently in Bayhealth Medical Center, and in the emergency room there were yellow signs on the walls that said “No Passing Zone.” He stated his initial belief that the hospital did not want wheelchairs buzzing around; but he noticed there was more writing below on the signs that stated “Don’t pass a patient in need. Every patient is our patient.” Mr. Slavin advised that he was very impressed with this philosophy of not passing something in need. He stated that he did not know what actual City activities would be involved, or whether members would get into those activities during the current meeting; however, he advised that the ethic that he had in mind was that when something is found that is broken, it is fixed. Mr. Slavin explained that this could be something that is physically broken or a broken process. He stated that

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 40 Mrs. Townshend had heard him say that she should let members know if there are parts of ordinances that need to be fixed, and they would get ordinances drafted, sponsored, and fixed. Mr. Slavin indicated that the City cannot constantly play catch-up on these things but should get to them, and get to them a little more rapidly. Mr. Slavin stated he thought that the City could empower the customer a little bit. He noted that there had been discussion about the ability to have a scorecard, and he thought this was hinting at a customer relation management software system that would allow the customer to call in, log their complaint, and empower them to go on the web and look at where it is. Mr. Slavin advised that the customer would be able to say, “I called on this date, I logged this, this is my ID number, and these are the steps that have been taken, or have not been taken, since then.” He stated that this would also help Council members, noting that sometimes he does not know what the resolution is, is not empowered with that information, and has to make four (4) phone calls. Mr. Slavin indicated that the current approach was very inefficient and not very effective. Mr. Slavin stated that he wanted the City to challenge the assumptions that affect customers. He stated that Mrs. Townshend had mentioned previously that sometimes the Code says the customer has to do something and the customer does not want to do it, or does not know why they must. Mr. Slavin advised that this moment should be used to ask whether it makes sense to require a customer to do something. He indicated that this is the moment when the City could begin to change things. Mr. Slavin stated the need to develop a point of view of understanding why a customer would be frustrated in these situations. Mr. Slavin noted that technology had brought a revolution in the last 20 years, and there are online reviews and the ability to shop in different places. He stated that if someone has a bad meal at a restaurant, they can make that known in a way that matters, not just by complaining to the maître d', cook, or owner, but by going on the internet and saying that they had a bad or a good experience. Mr. Slavin advised that government is one of the last places left in this country where people have to come to get something done and have no choice; however, he felt that the City should not take advantage of that, hold its customers hostage, and run them through miserable experiences in trying to open a business, or get a permit, etc. Mr. Slavin expressed the need to be more focused on this. Referring to the vision statement drafted by Mr. Neil that was discussed earlier in the meeting, Mr. Slavin stated that it was based on the City’s vision statement which indicates that the City of Dover is a place where people want to live or to do business. He expressed the need to keep this in mind, consider whether people really want to do business here and why, and make it easy for them. Mr. Slavin stated that he would be interested to hear from Council and staff members about how to instill this customer service ethic in the City’s government in a different way. He noted that he was not saying that it is not there now; however, there was a need to improve. Mr. Hutchison stated that he had been a customer of a local vendor in Dover for a long time. He recently wanted to close his original account and create a new one, because he was changing the way he does things to make it easier. After he had closed the account, he was told that he was no longer a customer and, as a brand new customer, had to go through a credit check to create a new account, which caused his blood pressure to rise. Mr. Hutchison stated that these were the kind of things that Mr. Slavin was referring to. He noted that the City, especially the Planning Department, has very complex operations. Mr. Hutchison stated that it makes sense sometimes to look at things that have

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 41 not been looked at and recommend changes. Mr. Passwaters asked if Mr. Hutchison had stayed with the vendor or shopped around. Responding, Mr. Hutchison stated that the vendor took care of the issue. Mrs. Townshend advised that, in relation to business and permitting, most of the frustration seen by staff relates to the building code. She noted that the National Fire Protection Association (NFPA) Code is an international code; the State Fire Prevention regulations, which are developed by the State and are out of staff’s hands as staff does not have a say and must implement them; and the International Code Council codes for building, plumbing, mechanical, and residential equate to a large volume of information. She explained that these codes say when an architect is needed, when a building must be sprinklered, and what must be done in terms of exit lighting. Mrs. Townshend noted that it is one thing for her to state that there is a flaw in the zoning ordinance that is not customer friendly and suggest an amendment to fix it, because that is a code that staff develops. She indicated that the other codes are extremely complex international codes that have been developed around safety and expressed concern about tinkering with them for the purpose of expediency when they had been developed based on the best resources. Mrs. Townshend advised that, with a few minor changes, they are the same codes that all other municipalities are dealing with, noting that the City of Dover uses the 2009 version, Kent County uses 2012, New Castle County uses 2012, and Sussex County uses 2003. She stated that a lot of those who do not want to comply with the code in Dover do not want to comply with the code in Milford, New Castle County, or Newark either. Mrs. Townshend advised that she was fine with looking for ways to streamline; however, she thought that the City’s flexibility was on the zoning and administrative procedure side. She stated that she did not believe it would be wise to start picking and choosing which provisions out of the three-foot tall stack of code books would be used. Mr. Hosfelt stated that he understood Mrs. Townshend’s comments and agreed with the codes. He asked if there was something in place to tell someone who wants to build a house or a business, from start to finish, what the timeline is, what permits or other things are required, and how the process works. Responding, Mrs. Townshend stated that there absolutely is a process if the request goes through the Planning Commission. She explained that there are many different variables, noting that if someone has signed a lease for a commercial space, staff needs to know if it is zoned properly if there is a change of occupancy classification. Mrs. Townshend explained that things can happen along the way; for example, an applicant may make a change that was not conveyed to staff at the beginning, such as adding a bathroom without getting a plumbing permit. She advised that most of the issues encountered by staff occur when an applicant acts as their own general contractor or has not been through the process. She stated that when a contractor is used, nine (9) times out of 10 there is no problem. Mr. Slavin stated that he understood and accepted that the codes are very deep, and that other municipalities use the same codes; however, he advised that the experience of people in some of these municipalities is vastly different than it is in Dover. He indicated that he knew this firsthand from contractors, people who have done work, and businesses who have chosen to relocate or locate in other places because of the experience they had in Dover. Mr. Slavin stated that he did not mean this to be harsh but was telling it like it is. He asked, if the issue was not the code, if it was in how requirements were being communicated to people. Mr. Slavin stated that if staff was relying on a one-to-one, over the counter explanation, maybe there was a need to look at ways to push this

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 42 information out other than buying 1,600 pages of code and letting people wade through it themselves. He advised that there were many types of technology available to the City and suggested using YouTube videos, training, and short, perhaps eight-minute videos on how to get a permit. Mr. Slavin stated that if the Code was broken, he would help staff to fix it; however, if it was going to stay the way it was, there was a need to get better at communicating it to customers. Mr. Koenig stated that, from an overall standpoint, it was as simple as reaffirming the customer focus every day. He advised that this must be something that is talked about every single day and at every meeting, so that it becomes the natural hat that everybody is putting on. Mr. Koenig noted that staff gets caught up in their jobs; however, this business is all about serving the public. He stated that he, personally, does not want to cut off anyone’s services and wants to leave the electricity, water, and sewer on, because in his mind this is future revenue. Mr. Koenig advised that there are times when the City has to cut people off because they simply will not or cannot cooperate. Mr. Koenig reiterated the need to reaffirm the service issue every day and to get better at it. Mr. Passwaters stated that communication was key. Mr. Sudler recalled a situation when he was serving as Chair of the Construction Code Appeals Committee and Smith’s Funeral Home had an issue with a sprinkler system. He stated that Mr. Smith was very frustrated and was looking at spending more than $100,000. Mr. Sudler informed members that the City worked with Mr. Smith and had to have a second meeting because Mr. Lewis had not been present at the first. He explained that, when all was said and done, another avenue was found that cost $25,000 or less. Mr. Sudler stated that the Fire Marshal advised that taking this route would be acceptable, rather than digging through asphalt. He noted that in the end everyone was happy, and Mr. Smith did not mind spending the lesser amount of money. Mr. Sudler explained that Mr. Smith had questioned why he was not told this from the beginning and why he had to make such a fuss to find out that he could have used option B and still been in compliance. Mr. Sudler stated that he was not getting on anyone, but he echoed Mr. Slavin’s comments, stating that members were asking staff to go the extra mile. He indicated that if there were other avenues in life safety that could be used and still be in compliance, this would create a better rapport with consumers, constituents, and the people to whom the City was saying that it is open for business. He noted that this may take a little more staff time. Mr. Sudler indicated that if people kept hearing no, they would tell others not to open up businesses in Dover because it is hard. He noted that the business he had referred to was a big funeral home that would involve large amounts of money. Mr. Sudler advised that he had seen firsthand that doors had been shut, and it was found that there was a back door to go in and still be in compliance. In response, Mr. Passwaters stated that this sounded like a perfect example of thinking outside the box. Mr. Sudler stated that he agreed, and noted that sometimes the focus is on giving the customer what they ask for instead of exploring other possibilities to get them what they need. Mr. Hare stated that the Planning Department is very busy and has a lot going on. He noted that some of the issues might be Council’s fault and may have been created when Council previously lumped several functions together to save a penny. Mr. Hare suggested that there may be a need to revisit this and separate these functions, like it was before Council had to make that change. In response, Mr. Sudler stated that he agreed with revisiting this matter, stating the desire not to overwhelm any one (1) department. He noted that once a department is overwhelmed, it will not be

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 43 any good to the rest of the departments they have to serve. Mr. Sudler stated that staff would be on the edge and constantly feeling that they have to meet deadlines. He indicated that he felt there was a need to separate the departments, and it was obvious that the departments were overwhelmed. Mr. Sudler advised that it appeared from what he was hearing that there were issues with buildings permits not getting out within a time frame and code issues. He stated that he thought Council would have to revisit this. For clarification, Mrs. Townshend informed members that she was not aware of any track record showing that the Planning Department was not getting permits out in a timely manner. She stated that if permits were taking longer for review, it was because information was not submitted with the application. Mrs. Townshend indicated that the City’s permit turnaround time was comparable to that in other locations; however, it was starting to take a little bit longer because of the volume. Mr. Passwaters noted that this was a good problem to have and Mrs. Townshend stated that she agreed. Mrs. Townshend indicated that it was not so much a problem of departmental structure, it as was due to holding the line on staffing regardless of the demand. Mr. Passwaters stated that this was something that needed to be monitored. Mrs. Townshend advised that for the past seven (7) or eight (8) years it had been about not asking for any staff or tax increases. She advised that the City was managing the budget to the revenue and not asking what was needed to get the job done. Mr. Slavin stated his understanding that Mrs. Townshend had advised that there was no delay in permitting once everything is received for the permit, and this was confirmed by Mrs. Townshend. Mr. Slavin informed members that he deals with this in his State job, noting that when a case is opened, they have a 30-day window to settle an issue. He stated that when he started, the number one complaint was that things were taking too long. Mr. Slavin explained that he had questioned how things could take too long if the window was 30 days from the time a case is received. The response he received was that the clock is not started until everything is in order. Mr. Slavin advised that there could be 90 days of back and forth, and then the clock would start. For clarification, Mrs. Townshend explained that people may bring in a permit application with a hand drawing that could have been done by a kindergartner. She stated that the application is logged and goes to the building inspector, who is unable to evaluate it. Mrs. Townshend indicated that within two (2) or three (3) days, the inspector calls or emails the person to let them know, and documents it. She advised that the person may not get back to staff and then call and say that their permit application has been with the City for 14 days and the permit has not been issued. Mrs. Townshend stated that this is a two-way street, and staff was not sitting on applications. In response, Mr. Passwaters stated that this is an opportunity to correct what is accepted, suggesting that something that is hand drawn may not be accepted. Mrs. Mitchell advised that she had been involved in helping to put the budget together for the last four (4) or five (5) years, noting that she had pulled back from this and it had gone back to the City Manager to handle. She stated that she had recognized that with this extra responsibility and tentacles in different areas, she was not concentrating on her core focus. Mrs. Mitchell advised that there were things to be done for her department to get back to cash management and the things that they needed to be doing. She indicated that if staff is spread too thin, their core service suffers.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 44 Mrs. Hawkins stated that Mr. Hare had made many wonderful comments, and she agreed with a lot of them. She stated that the Retreat had started off with discussion about going back to the goals of the department. Mrs. Hawkins noted there had been 13 directors or assistant directors present before Captain David Spicer, Police Department, stepped out, and there were now 12. She encouraged using their talents and skills if members wanted staff to do goals. Mrs. Hawkins stated that, in her opinion, the Retreat was wonderful, noting that she now had a road map that was written on the whiteboard. She noted that, whether or not it was finalized, this road map was what she saw as important. Mrs. Hawkins stated that Mr. Slavin had talked about customer service and how this could be instilled, and Mr. Koenig had noted that this was going to be a topic of every meeting held. Mrs. Hawkins advised that staffing had been discussed, noting that Mrs. Mitchell’s comments were right on target. Mrs. Hawkins stated that department heads were being paid to be absolutely in the weeds and suggested that members use the talent that they were paying staff for. She indicated that the City may need to find money to pay for staffing. Mrs. Hawkins advised that she hated to mention this because for many years there had been talk about holding the staffing level; however, in order to grow, at times there is a need to add staff. For example, Mrs. Hawkins explained that her department is under the gun for recruitment. She noted that Human Resources has an Excel spreadsheet that tracks positions that extends out to column ZZZ. Mrs. Hawkins advised that they list how many positions are open, how many are being interviewed for, and the reason for delays, which Council members may question. She stated that there may be delays because the first candidate did not accept, the second did not pass the background or urine test, and another candidate declines. Mrs. Hawkins noted that if the third candidate does not want the job, she has to re-post the position, which results in extending the spreadsheet out to column ZZZ. Mrs. Hawkins expressed her understanding that Council members are interested in a scoreboard. She stated that staffing levels probably needed to increase and requested that members utilize the talents of the 12 directors or assistant directors present, as well as those who were unable to attend. Mr. Hudson informed members that at some point cuts in service for non-payment of bills would drastically increase in the Customer Service Department, because staff would not only be cutting service but also turning it back on. He stated that he sends a daily report to Mr. Koenig letting him know how many people should be cut and how many people are being cut, which is far less. Mr. Hudson noted that there is a dollar figure for both categories in terms of what should be collected and what is actually collected. He explained that there would be a problem when staff begins ramping this up and anticipated that Council would receive many calls. Mr. Hudson expressed the desire for Council to be aware that what staff was doing was more than just cutting. He indicated that he, Ms. Marney, and the Department had been reaching out to line up non-profit and social service organizations and asking if people could be sent to them for help. He stated that they already had an organization that was flush with cash and would be ready during the summer for cooling assistance, noting that this organization had given out free air conditioning units during the past summer. Mr. Hudson advised that he did not want members to think that all staff does is cut people and make their lives miserable, noting that staff were good people. Ms. Cyr stated that she did not want what Mrs. Mitchell, Mrs. Townshend, Mrs. Hawkins, and Ms. Marney had said to be lost, noting that staff were the professionals hired to provide guidance to members and to the organization. She indicated that members had not hired them to be in the weeds, noting that they could not get out of the weeds if they did not have the support staff needed.

COUNCIL RETREAT OF JANUARY 6, 2017 PAGE 45 Ms. Cyr advised that staffing levels had been static for so long that staff was being forced into the weeds, and if members wanted them to be out of the weeds, they needed to have support. Mr. Neil commented that, to summarize, the service that they were seeking to provide for the City’s customers on all of levels was concierge government. Mr. Passwaters asked the leaders present, who have people who report to them, to remember the old adage that says, if you want to know what is going on in a facility, ask the person on the front line, and they will tell you. He stated that this should be done if there is a desire to improve the process. Mr. Passwaters indicated that he thought members had received some of that information during the meeting. Mr. Slavin expressed thanks to Mr. Passwaters, stating that, probably more than any other person they had dealt with in the City, he was worth every penny. He also thanked everyone who made time from their schedules to attend. Mr. Slavin reiterated that a document would come out of the Retreat and be circulated to everyone. He indicated that Council would review it during committee meetings, before distributing it through the organization and beginning to work on it. Mr. Hutchison moved for adjournment. The motion was seconded by Mr. Neil and carried with Mr. Anderson voting no. Meeting adjourned at 2:30 p.m. Timothy A. Slavin Council President /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Council-Minutes\2017\01-06-2017 Council Minutes - Retreat.wpd Exhibits Exhibit #1 - Document entitled “Central Delaware Chamber of Commerce - Vision 2020 for Dover - As of: 6 Jan 2017,” provided by Mr. Scott Kidner Exhibit #2 - Document provided by Mr. Neil - Mission Statement, and Long- and Short-Term Recommended Projects for the City and the Third District Exhibit #3 - Document entitled “4th District Constituent's Official Request for City Road to be Paved, October 2016” provided by Mr. Sudler Exhibit #4 - Document entitled “Official Complaint from James Wilmer, 849 Lincoln St., Dover, DE 19904, 1-6-2017,” provided by Mr. Sudler

EXHIBIT #1 Council Retreat of 01/06/2017 CENTRAL DELAWARE CHAMBER OF COMMERCE Vision 2020 for Dover ‐ AS OF: 6 JAN 2017 1. Establish an ongoing Strategic Planning Process for the City of Dover. Create a working group or committee to do this Strategic Plan; Council Members, City Committee Members (maybe 1 per committee) and some local business leaders. In this plan you would update the City's Vision, Mission, and Critical Goal Categories. Determine by whom and when these objectives are to be completed. This process will provide the City with a way of truly measuring their effectiveness. 2. Create an Express Development Program ‐ Streamline the License, Permit, Inspection ( LP&I) process (a visual roadmap for applicants) for current licensed and new applicant businesses in the City. Create an "Ombudsman" or "Navigator" for any person or business that has issues or questions with the License, Permits and/or Inspection process in Dover. For example, if the owner of a property seeks a demolition permit ‐ make that process as inexpensive and quick as possible, including those properties that may be within the historical and development districts, assuming no true historical relevance of the structure. 3. Complete a review of the City's tax code seeking to reduce, cut or create incentives for the growth of businesses. Once this review is done they City can then create a program that will increase tax credits and other incentives (within reason) that supports the development of new businesses in the City of Dover. Example: a reduction in property taxes for the first 3 years of operations if in the City; this can be tied to employment or size of construction/renovation values. Additionally, create property tax reductions or reductions in impact fees for businesses that exceed current zoning requirements. Example: IF the project requires a certain amount of plantings or removal of impervious surface ‐ the owner goes above those minimum requirements ‐ it counts as a reduction in impact fees or some other tax/fee. 4. Reduce the impacts of zoning and review for any businesses seeking to expand or purchase or lease property in the Downtown Development District – this would reduce the amount of time for initial review and any subsequent reviews. (This may be part of the Express Development Program.) 5. Empower the economic development office in the City with the necessary ordinances or regulations to effectively advocate and support growth. 6. Identify the real core services of the City of Dover and those services the City cannot provide. Determine what they need to be and what services should be developed in conjunction with partners ‐ snow removal, trash pick‐up, etc.

7. Develop a plan that moves the City toward eventually selling the City's electrical service (both generation and distribution system). As the sale is explored ‐ create a Trust or Foundation with the proceeds that will be into which operates outside of the Council. This insures those monies are not "raided" by some future Council. The trust can be placed with the Delaware Community Foundation as an example. 8. Implement a new "sponsorship" program for the City's open spaces and small parks for maintenance and support by local businesses. In exchange for a minimum sponsor package the business gets to place a sign on the property advertising their support of the City. For larger parks or spaces ‐ businesses or persons have their names on the City’s website and linked to their own website. This will reduce the cost for the City and will create partnerships with area businesses. 9. Continue with the CDCC’s Committee to review the City's zoning codes to help support and create new business opportunities and to modernize our planning process. Also, maintain the CDCC Budget Working Group to assist the City with ideas and Best Practices being used by businesses to reduce their overall costs. 10. Create an ongoing plan to sell all assets such as buildings, trucks, land, and equipment on a routine. Advertise these sales to the residents and businesses in the community. Make it part of some ongoing tradition or event ‐ maybe the 4th of July celebration.

EXHIBIT #2 Council Retreat of 01/06/2017 C!Cttp of fred Ned, 3rd Oisfrid, City Council P. 0. Box 475, Dover, Delaware 19903 + 30.2-736-7009 For January 6, 2017 Retreat Session From: Fred Neil Mission Statement To create a safe and diverse environment responsive to the needs of its citizens permitting individual and cmmnunity growth. Long Term Recommended Projects 1. New City Municipal Building 2. Decision on how to proceed with Electricity Short Term Recommended Projects 1. A Score Board to allow members of Council to see status of all projects, empty City owned buildings, job openings status, and complaints pending with estimated completion or resolution dates. 2. Empty City Building evaluations and sale Rationale The majority ofthis Council were elected in 2015 . As new comers, there was no Blueprint or Outline on what has been done or what needs to be done in a coherent fashion. The exception was the budget review which we faced on an immediate basis. As we progress towards the election of 201 7, there will be at least one new person on this Council. It would be helpful, for that individual and possible new members and the Council as a Whole to have a big picture of what is cunently happening in the City and issues that must be dealt with going forward. Page 1 of 3

Long Term: Municipal Complex: This cunent City Hall and the Weyant Hall are just plain worn out, costly to maintain and repair. The decision as to how to proceed belongs to this Council now. City Hall is in a great location but do we move all functions away on a temporary basis at what cost in order to keep this location or do we move to a new location? If so, where and at what cost? Architectural design contest? What cost to build? Financial Prep and approvals? Power Supply: The Council faces an Electrical Cross Road with 2 old Power plants being closed, a third still functioning and available on grid. Selling electricity has benefitted Dover 2-Fold. It has helped keep the tax rate down, the budget balanced, and provided low rates to our citizens. As I understand it, the power market has changed with power consumption down as more power efficient products are on the market. I personally like having the ability to control the price of power in City hands because of the profit and the ability to keep the cost of power to our city dwellers low. The cost of building a new Power Plant will be high? Will we have the personnel to operate it? Will it remain profitable? Can we buy and sell electricity without building a new Power Plant and make it profitable enough to keep rates down without causing problems for our customers? Calpine has the ability to add another Turbine. How does Calpine fit into the picture? Do we also kick this Can down the road? I recommend going forward with a review fi~om experts in the field of the Pros and Cons to create a plan of action. Short Term: The Need to Know: Those ofus elected in 2015, inherited unfinished business that should have been finished before we were elected. The City has so many moving parts that unless we step back and have a global City view we can't see them all. How many complaints do we receive from our constituents? When were they received? Are they resolved? When are they resolved? Which ones remain open to come back on our complaint list? Job Openings have been a sticking point. While these show-up along with construction projects during period budget repmis, it would be very helpful if we can electronically take a look at a scoreboard to see where the City stands on complaints and projects and see when the projects will be completed or, complaints resolved, and hires made. City Council Legislative Flow: Is there Software or another means of showing the progress and flow of what is going through the legislative process tom help us and those who work at our behest? Page 2 of 3

Are there other things we need to keep a watchful eye on? Having that overview will help the City Manager and other Department Heads as well. Empty Buildings: It took homeless advocates to bring this one forward. I seriously doubt any of these buildings would be habitable without a costly transformation. Beyond that, turning over buildings raises so many more questions. These empty building do not belong to us. They were bought and payed for by the taxpayers of Dover. Can they be used for something of value to the governance of the City or should they be declared surplus? What would they bring if sold? Could they generate income with their use by a non-profit organization on a lease basis? The immediate need is an evaluation of each prope1iy as to condition, possible City use, or to be considered surplus and sold or leased? 3ru District Specific Long Term A. Keep Dover Downs solvent by pressuring the State from taking all of the profits. B. Examine possibility of approved road from Del 1 Toll Road to extend to Persimmon Tree Lane. Short Term C. Temporary escape and emergency egress route during NASCAR and Firefly when Persimmon Tree Lane is closed, Proposed route along Pipe Line leading to Calpine Plant. D: Development of White Oak Park Page 3 of 3

EXHIBIT #3 Council Retreat of 01/06/2017 4TH DISTRICT CONSTITUENT'S OFFICIAL REQUEST FOR CITY ROAD TO BE PAVED OCTOBER 2016 To the Mayor, City Council Members, City Manager of Dover, 31"' District House of Representative and 17th District Senator: We the people who are Law-Abiding Citizens, Stakeholders, Taxpayers, Residents and Property Owners in the City of Dover and Kent County area are requesting that Conwell St. located between State College Rd. and Raymond St. of Dover, Delaware be paved with Hot-Asphalt Paving, Drainage System, Sidewalks and Curve Appeal in an effort to increase the quality of living in our community. Conwell St. currently consists of over 14 pot-whof€5 and is about 12' feet wide and over 400' feet long. Conwell St. is in deplorable condition, which through the years has caused community members to obtain wheel-alignment services and new tires due to the rapid decline in the conditions of Conwell St. 1

4TH DISTRICT CONSTITUENT'S OFFICIAL REQUEST FOR CITY ROAD TO BE PAVED Conwell St. between State College Rd. and Raymond St., according to our knowledge has not been paved with a Hot-Asphalt Application for over 40 years. ~ We are respectfully asking that the City of Dover honor our request and pave Conwell St. and install drainage system, sidewalks and cu1ve-appeal in an effort to increase the quality of living in our community as soon as possible. Thank You, SIGNED BY PROPERTY OWNERS/RESIDENT'S ADDRESS:

4TH DISTRICT CONSTITUENT'S OFFICIAL REQUEST FOR CITY ROAD TO BE PAVED "3 2. a R_ ~7 ~0 --A c;, + £2rrr< t' 2__ /Jo{[cr- L / . ()L '3 Lc n_r;;-, (S' rJ- )2~r z_ a 7_ Oove_v PeL /f<JoY ']z_o fLcu..rh"C)h~ 5f lrP!, 1D ( i2vve .\C DeC I qqD L( 3Lo Jt~{}ii"'<WY\~ 3f td-F {b ( /)ov€1 .O ~L { qqoif 720 Q ~6. ¥': )q~ tJg 1s. lJo111-1 c... ::r oh<?1 -fl.:.:> RCA·ffi'"6A. cJ. .s-f ' / f J?o i ~ ~:tJ~ ~'f~ acr;J, U,~~4t:-Zt't111Yf ; n:~~ o;iO.~ JLptsn1.~~mo"f 1s. Y~ ry,'L Svt:~kr J 2 Cl ~f\ 'I' \\1\oN d ~); D 0 ve'f )) ll 11otJ !9. ~ (~ };;Ju1..Jj' 3aJ--J£ ./'fiO"' { . 20 arJo~~· J--;:J fYtn"'"-¢ :d 3

4TH DISTRICT CONSTITUENT'S OFFICIAL REQUEST FOR . CITYROADTOBEPAVED 3J-o 3~0 2s.---=..1~~~~~~~-----=:::3:. .:d- ~o:!..__~~~~~~ 26_ $qmuel InQcam u ~d 0 f?tymcfd sf 27. li,)C\ ( f'O.t/1 3d\::l [o-yrp1J 5+ 28. w .\ \\\Ct. WJ Y>.e 0.52"" 3dlb ~t jiVtOrJ Sf 29.0~ fY1 fY1 Y £3 IDw n I 3:26. kaYll1onJ S±iJo-.Je.r~e. 197b'f -I ' rJpf_· 30 . ___.~==«-;'-~~---"-'-'7-t~..___---=3~a~'- - '-'-l-'cjf-'--""'........._-s+- _ -. ------'7, 1-J.;_ _ . 32. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 33. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 34. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 35. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 4

EXHIBIT #4 Council Retreat of 01/06/2017 OFFICIAL COMPLAINT FROM JAMES WILMER@ (302) 228.1615 849 LINCOLN ST. DOVER, DE 19904 1-6-2017 •

OFFICIAL COMPLAINT FROM JAMES WILMER@ (302) 228.1615 849 LINCOLN ST. DOVER, DE 19904 1-6-2017 Remove Gravel and secure area from children throwing rocks or people getting hurt {Hazardous Area} 1

OFFICIAL COMPLAINT FROM JAMES WILMER@ (302) 228.1615 849 LINCOLN ST. DOVER, DE 19904 1-6-2017 Need Flashing Speed Sign Indicator and School Crossing Signs for Children coming from school on the corner of Gibbs and Lincoln St. Need to correct Hot Asphalt Repairs to Lincoln Street Road. {90-100' Linear feet} 2

OFFICIAL COMPLAINT FROM JAMES WILMER@ (302) 228.1615 849 LINCOLN ST. DOVER, DE 19904 1-6-2017 -- - ---==-- 16' X 4' Hot Asphalt Mix over Concrete Walkway [Application-Not Smooth/ Incorrect Area] 16' X 4' Gravel Installed in Grass Area where Grass Seeds should be installed / Concrete Curve Appeal] 3

OFFICIAL COMPLAINT FROM JAMES WILMER@ (302) 228.1615 849 LINCOLN ST. DOVER, DE 19904 1-6-2017 Drain Clean-Out Pipe Install is too high with no top-soil or seeds for grass growth [Hazardous] Top Seal is inconsistent with other seals [Review Bottom Picture] 4