COUNCIL Minutes

REGULAR COUNCIL MEETING The Regular Council Meeting was held on June 14, 2010 at 7:30 p.m. with Council President Hogan presiding. Council members present were Mr. Bonar, Mrs. Russell, Mr. McGlumphy, Mr. Leary, Mr. McGiffin, Mrs. Williams, Mr. Salters, and Mr. Ruane. Council staff members present were Police Chief Hosfelt, Ms. Russell, Mrs. Mitchell, Mrs. Townshend, Fire Chief Christiansen, Mr. DePrima, City Solicitor Rodriguez, and Mrs. McDowell. Mayor Carey was also present. OPEN FORUM The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Hogan declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action. There was no one present wishing to speak during the Open Forum. The invocation was given by Councilman Salters, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. Leary moved for approval of the agenda as presented, seconded by Mrs. Williams and unanimously carried. Mr. Bonar moved for approval of the consent agenda, seconded by Mr. Leary and carried by a unanimous roll call vote. ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF MAY 24, 2010 The Minutes of the Regular Council Meeting of May 24, 2010 were unanimously approved by motion of Mr. Bonar, seconded by Mr. Leary and bore the written approval of Mayor Carey. PRESENTATION - GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) DISTINGUISHED BUDGET AWARD The Distinguished Budget Presentation Award for the Fiscal Year beginning July 1, 2009, from the Government Finance Officers Association, was awarded to the City of Dover. This award signifies the excellent manner in which the City prepares and presents its budget. Mayor Carey presented the award to Mrs. Teresa Tieman, Senior City Administrator, and noted that this is the 20th time the City has received this award. Mayor Carey commended the budget team for their efforts. Mrs. Tieman relayed appreciation to all the participants in the budget process, including the citizens, members of Council, department heads and their administrative assistants, and the employees of the City of Dover, as well as the budget team (Mr. Anthony DePrima, City Manager, and Mrs. Donna Mitchell, Controller/Treasurer), who played a major role in the preparation of the document. She also thanked Ms. Hollie Ford, Administrative Assistant, for her diligent work and effort in the preparation of the budget.

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 2 PUBLIC HEARING - ELECTRIC FUND BUDGET A public hearing on the Electric Revenue Fund Budget is required for compliance with Section 505 of the 1993 Electric Revenue Refunding Bond Issue (Refunding 1985 Electric Revenue Bond) prior to adoption of the budget. Notice of the public hearing was properly advertised for this time and place. Mr. Anthony DePrima, City Manager, announced that the proposed Electric Fund budget for the Fiscal Year beginning July 1, 2010 through June 30, 2011 proposes $110,118,113 in revenues and expenses, which includes a $2M power cost adjustment to be credited back to customers. The adjustment would be reflected in the billings for July as a .0028 credit per kWh, which would create a $33.00 per year reduction in electric rates for an average home in the City. He noted that the budget also includes $8,744,651 in the fund balance to meet policy requirements in this regard and an $8,856,000 transfer to the Electric Fund. Council President Hogan declared the public hearing open. There being no one present wishing to speak during the public hearing, Council President Hogan declared the public hearing closed. No further action was taken. Council President Hogan noted that the First Reading of the Budget Ordinances will take place during the latter part of the meeting and that the Final Reading and adoption of the Ordinances are scheduled for the Regular Council Meeting of June 28, 2010. PUBLIC HEARING/FINAL READING - PROPOSED ORDINANCE #2010-12 - ZONING TEXT AMENDMENTS A public hearing was duly advertised for this time and place to consider approval of proposed land and zoning text amendments that propose to create a Recreation and Open Space (ROS) Zone that would be applied to City parks, protected open space, recreation areas within residential developments, and other areas identified as "Open Space" within the Land Development Plan. Mr. Salters moved that the Final Reading of the proposed zoning text amendment be acknowledged by title only, seconded by Mr. McGiffin and unanimously carried. (The First Reading of the Ordinance was accomplished during the Council Meeting of April 26, 2010.) Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that staff developed the Proposed Ordinance as an implementation measure associated with the 2008 Comprehensive Plan. The proposed zone would be applied to areas shown as Open Space on the Land Development Plan of the 2008 Comprehensive Plan. Mrs. Townshend explained that the proposed amendment would adopt the permitted uses, conditional uses, bulk standards, and design requirements for the proposed zone. In developing the Proposed Ordinance, she stated that staff reviewed the Land Development Plan to ensure that the uses permitted and bulk standards set forth are consistent with the areas where the zone will ultimately be applied. Members were advised that the rezoning of properties will require separate action by the

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 3 Planning Commission and City Council. Mrs. Townshend noted that the text amendment creating the Recreation and Open Space (ROS) Zone is the first in a two (2) phase process. Staff is currently working on determining which properties in the City will be proposed for rezoning to this classification and notifying affected property owners. She indicated that staff expects to bring the parcels proposed for rezoning forward for a First Reading at the June 28, 2010 City Council meeting. Mrs. Townshend advised members that the Planning Commission recommended approval of the proposed amendments. Council President Hogan declared the hearing open. There being no one present wishing to speak during the public hearing, Council President Hogan declared the hearing closed. Mr. McGlumphy moved for adoption of Ordinance #2010-12 (Exhibit #1), seconded by Mr. Bonar and carried by a unanimous roll call vote. SPECIAL COUNCIL MEETING (BUDGET HEARINGS) MINUTES OF MAY 18, 19, 20, AND 25, 2010 The Minutes of the Special Council Meeting (Budget Hearings) of May 18, 19, 20, and 25, 2010 were unanimously approved by motion of Mr. Bonar, seconded by Mr. Leary and bore the written approval of Mayor Carey. Mr. Anthony DePrima, City Manager, provided a briefing on the Budget Hearings, as follows: Setting of Property Tax Rate for Fiscal Year 2010/2011 Mr. DePrima reminded members that the property tax rate for FY 2010/2011 was set at 0.334 per $100 of assessed value and that the previous assessed value of property in the City was based on the reassessment concluded in 2005. Based on these figures, he explained that the total tax base for the City of Dover was projected as $2,913,538,826. Upon completion of the reevaluation in 2010, Mr. DePrima indicated that the new assessed value for the City of Dover totals $3,093,511,459, an increase of approximately 6%. In accordance with Delaware State Law, he advised that the City must publish a "roll back tax rate" to account for the 6% increase, which would equate to .31084 per $100 of assessed value. Mr. DePrima noted that if Council decides to levy taxes above this rate, the City must state this change as a tax increase. He noted that the current proposed budget includes a proposed rate increase in the amount of .33784 per $100 of assessed value, which equates to an 8.68% tax rate increase. Budget Ordinances - Proposed 2010/2011 Noting that there are 22 budgets, Mr. DePrima provided a briefing on the three (3) main budgets proposed, as follows:

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 4 General Fund, Cash Receipts and Budget - $37,709,966 Mr. DePrima noted that the General Fund meets the fund balance requirements of 8% and includes an 8.68% increase in taxes, an increase of $5.85 for the average homeowner for monthly trash fee, and a 3% increase in business license fee for most businesses.

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 5 Water/Wastewater Fund - Revenue and Budget - $12,778,737 Mr. DePrima explained that the Water/Wastewater Fund includes a water increase of approximately .114, a wastewater rate increase of 26%, and a new groundwater infiltration charge of $1.05 per 1,000 gallons. While these rate increases are substantial, he indicated that City of Dover rates overall are well below the average rates for water and wastewater providers in the State of Delaware. Electric Revenue Fund - Revenue and Budget - $110,115,281 Mr. DePrima stated that the Electric Revenue Fund includes a Power Cost Adjustment credit in the amount of .00284 per kWh, which will fund approximately $2M back to rate payers and provide the average homeowner approximately $33 per year in credits. Budget Ordinances - Downtown Dover Business Improvement District - Cash Receipts/Budget FY 2010-2011 Mr. DePrima reminded members that the proposed Downtown Dover Business Improvement District, Cash Receipts and Budget, totals $52,144, which includes the setting of a tax rate for the district. Like the property tax, he advised members that a roll back tax rate is required by Delaware State Law. He noted that there are no proposed tax increases; therefore, adoption of the roll back tax rate is requested. The roll back rate for Zone 1 is .06344 per $100; Zone 2 is .03494 per $100; and Zone 3 is .01564 per $100. Mr. McGlumphy noted that the proposed budget includes various salary increases for FY 2010 and a restoration of 2009 salary increases, as well as an additional 3% increase for non-bargaining and Fraternal Order of Police (FOP) employees. He also noted that the City is currently in negotiations with two (2) unions, the International Brotherhood of Electrical Workers (IBEW) and the International Union of Electronic, Electrical, Salaried Machine and Furniture Workers and Communication Workers of America (IUE-CWA). It was his understanding that the restoration of the 2009 salaries provides a 3.5% increase for employees of the IUE-CWA, non-bargaining, and FOP, and a 4% increase for employees of the IBEW. Mr. McGlumphy indicated his opposition to the proposed budget, stating that he felt it was not a sustainable budget, it compounds legacy cost, and the citizens of Dover are not in favor of it. Responding to Council President Hogan, Mr. McGlumphy explained that when he mentioned the "restoration" of 2009 salaries, he was referring to the cancellation of employee furloughs, which negated salary increases in FY 2009. Mr. McGlumphy confirmed that salaries for City Council would also be restored under the proposed budget. Mr. McGiffin moved to accept the Council Budget Hearings Report, seconded by Mr. Salters and carried by a roll call vote of six (6) yes and three (3) no (Mr. McGlumphy, Mr. Leary, and Mrs. Williams).

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 6 UTILITY COMMITTEE REPORT - MAY 24, 2010 The Utility Committee met on May 24, 2010 with Chairman Ruane presiding. Request for Alley and Street Abandonments - 100 Block of North Governors Avenue Alley West, the Southern Portion of the 200 Block of North Governors Avenue Alley East, a Portion of the Unit Block of North Bradford Street, the Unit Block of Fulton Street, a Portion of the Unit Block of Cecil Street, a Portion of the 200 Block of North Bradford Street, and the Northern Portion of the Unit Block of North State Street Alley West - Wesley College Members considered a request from Wesley College that the City abandon portions of streets and alleys in the vicinity of Wesley College, as follows: Area #1 - Alley between North Governors Avenue and North New Street from Cecil Street to Fulton Street; Area #2 - Portion of alley between North Bradford Street and North Governors Avenue, north of Cecil Street; Area #3 - North Bradford Street between W. Division and Fulton Streets (portions only); Area #4 - Fulton Street between North Governors Avenue and North State Street; Area #5 - Cecil Street between North Governors Avenue and North State (portion only); Area #6 - North Bradford Street between Cecil and Mary Streets (portions only); Area #7 - Portion of alley between North State Street and North Bradford Street, south of Fulton Street and north of W. Division Street. Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that the request is being made in anticipation of implementation of the Wesley College Master Plan for creating a more pedestrian-oriented campus. She stated that the subject property consists of public streets owned and maintained by the City of Dover. The portions of rights-of- way requested for abandonment are adjacent on both sides to other properties owned by Wesley College. Fulton and Cecil Streets (Areas #4 and #5) connect North State Street with North Governors Avenue and are conduits for through traffic between the two (2) roads. The two (2) segments of North Bradford Street (Areas #3 and #6) that are requested for abandonment end at the college. Mrs. Townshend noted that several alley segments are also proposed to be vacated. Members were provided a diagram depicting the location of each of the areas. Mrs. Townshend indicated that the Planning staff supports Wesley College=s vision of a pedestrian-oriented campus and, should the long-term abandonment of the subject streets help accomplish this objective, staff supports the conceptual request. However, she stated that staff recommends that such approval be conditioned on abandonment coinciding with future site plan approval. Because these are public streets that are part of the downtown grid system, Mrs. Townshend stated that staff believes that Wesley and the City should consider the testimony presented by the public on this matter, as well as a phased abandonment. Mrs. Townshend noted that the Planning Commission recommended approval of the street and alley abandonment, as requested by Wesley College. She advised members that the Planning

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 7 Commission=s motion did not reference the conditions recommended by Planning staff and requested that these conditions be addressed by the Utility Committee. Referring to the first condition, Mrs. Townshend indicated that the City Manager has recommended that the abandonment be linked to the completion of the implementation of the Wesley College site plan. She stated that the intent is to ensure that the City maintains ownership of the subject streets and alleys until they are altered in accordance with the site plan. Mrs. Townshend explained that the recommended conditions are as follows: 1) Abandonment should be timed so that the City maintains ownership and maintenance of the subject streets and alleys until site improvements involving those areas are made, in accordance with a site plan approved by the Planning Commission. 2) All public electric, water, wastewater, and storm sewer infrastructure must be located within permanent utility easements, in accordance with the recommendations set forth in the Public Utilities comments from the Development Advisory Commission (DAC) report dated April 1, 2010 (provided to members). Mrs. Townshend indicated that she had discussed this request with Fire Chief Sean Christiansen, who indicated that comments from Fire Department staff will occur when the streets are actually altered or blocked off. She stated that, if staff=s recommendation to link the abandonments with the site plan is incorporated in the Utility Committee=s recommendation to Council, this would satisfy the Fire Department=s concerns since they would perform a review at that time. Responding to Mr. Ruane, Mrs. Townshend assured members that the omission of the DAC comments in the recommendation from the Planning Commission was an oversight. She noted that the Commission=s recommendations normally include DAC comments and that it was realized after the minutes were completed that this was not accomplished. She stated that the applicant was made aware of the conditions. Mr. Gregg Moore, Becker Morgan Group (representing Wesley College), noted that during the public hearing before the Planning Commission, the applicant indicated concurrence with the provision that no improvements, changes, or modifications would be made to any of the roadways until the plan to create the walking campus is accepted by the Planning Commission. Mr. Moore briefed members on the request and the plan to create a walking campus for Wesley College (details, including maps, were provided to members). Referring to the map, he indicated that the plan would include improvements, walkways, easements, etc. He noted that the plan, when presented to the Planning Commission, will depict how a cul-de-sac would be created on the property to allow emergency services into the portion of Cecil Street that will remain unchanged. Responding to Mr. McGiffin, Mrs. Townshend stated that adjacent property owners include

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 8 Wesley College and one (1) additional property owner, and that these owners were notified, as required. Mr. Moore noted that Dr. William Johnston, President of Wesley College, contacted neighbors adjacent to the areas who would potentially be affected and that the College also held neighborhood meetings and provided updates on the long-term plan and the requests for alley and street abandonments. In response to Mr. Bonar regarding adequate parking, Mr. Moore indicated that Wesley College is considering the prohibition of freshman/underclassman vehicle usage, as well as the addition of a parking garage and/or flat parking lots. He assured members that Wesley College understands that if parking is eliminated, parking must be provided elsewhere. Mrs. Townshend noted that staff=s report includes a comment regarding the elimination of parking and that the site plan would require a specific plan to accommodate displaced parking to avoid dispersion of parking into nearby neighborhood streets. Mr. Clarence Savin, 226 N. Governors Avenue, relayed concerns regarding the current parking conditions at Wesley College and the surrounding areas and felt that prohibiting freshman from having vehicles on campus would make parking conditions worse for the neighboring streets. Although he had no objections to the long-term plan proposed by Wesley College, he felt that parking should be addressed prior to any approvals. Mr. Savin indicated that there are already parking concerns on his block, explaining that there are two (2) houses on the block permitted to house Wesley students and that there are currently four (4) houses. He questioned how Wesley College plans to access the parking lot at the old tennis courts and allow for delivery trucks (for the kitchen) if Fulton Street and parts of Cecil Streets will be closed. With reference to the neighborhood meetings held by Wesley College, Mr. Savin indicated that no one on the 200 block of N. Governors Avenue was notified of such meetings. Prior to taking any further action, he felt that the City should require Wesley College to provide adequate parking. Mr. Michael Maciarello, 11 Cecil Street, advised members that, in addition to a neighborhood presentation, Dr. Johnston provided a presentation of the plans for Wesley College to him personally. Mr. Maciarello indicated his opposition to the proposal, explaining his feeling that the pedestrian- oriented campus plan does not fulfill the primary point for the project, which is improved safety. He stated that the majority of traffic on Cecil and Fulton Streets consists of Wesley College students cruising for parking spaces, since proximity to their classes is an issue. Mr. Maciarello noted that the neighborhood association has been working on obtaining cross-walks for school children coming from the west side of Governors Avenue going to Central Middle School, and this took three (3) years to accomplish. It was his feeling that the Wesley College request appears to be "fast tracked". Mr. Maciarello indicated that the first steps in achieving the goal would be to eliminate parking from Cecil Street to Fulton Street since this would "push" traffic out and would be a less expensive option. He felt that his residence would be the most affected, since the closing of the street would occur right before his home, noting that emergency response would be delayed. He suggested that Wesley College consider development of their properties located on the east side of Governors Avenue and incorporate a parking garage with a pedestrian

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 9 overpass. This would link the two (2) properties in a manner that would be more conducive to pedestrian traffic and safety. In response to Mr. Ruane, Mrs. Townshend explained that the process for street and alley abandonment requires that the matter be presented to Council to set a public hearing (for June 28, 2010), if recommended favorably by the Committee. She indicated staff=s reluctance to expand the notification beyond the required adjacent property owners, explaining concern that this could create problems; however, should the Committee make such recommendation, she suggested that property owners within 200= be contacted. Responding to Mr. Hogan, Mr. Moore stated that there has not been any final determination regarding the location of a parking garage and that the College has considered utilizing property they currently own, as well as purchasing property for this purpose; however, he indicated that no final decision has been made in this regard. In order to assure adequate parking, Mr. Moore stated that there would be a need to replace every parking space lost as a result of the abandonments and, depending upon what building or structures are added, there would be additional parking necessary to assist with the current parking situation. Mr. McGiffin relayed concern with recommending approval of the request at this time due to the lack of public notification. Mr. Snaman noted that the role of the Utility Committee is to assure that utilities are not affected by such an abandonment and suggested that any concerns regarding parking would be addressed by the Planning Commission. Responding to Mr. Ruane, Mrs. Townshend explained that the parking concerns have been included by the Planning Staff as advisory comments and that all comments, including the requirement to compensate for displaced parking, must be included in the site plan. The Committee recommended that the request be postponed to allow Planning Staff to notify all property owners within 200= and that the item be reconsidered by the Utility Committee during their meeting of June 28, 2010. By consent agenda, Mr. Bonar moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote. Review of Utility Related CIP=s (Electric and Water/Wastewater) Members were provided a Project Tracking Report, as of March 31, 2010, for the Utility (Electric and Water/Wastewater) Related Capital Investment Plan (CIP). Mr. Anthony DePrima, City Manager, noted that, since the State financing has been finalized, the City has begun construction of several projects, particularly in Wastewater. The Committee recommended acceptance of the Utility Related CIP=s Report.

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 10 By consent agenda, Mr. Bonar moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote. Update - Green Energy Funding and Programming Members were provided an update, as of May 13, 2010, on Green Energy Funding and Programming, which included details regarding those grants that were paid, pending applications, energy depot fees, and energy efficiency campaigns/education programs. Mr. Anthony DePrima, City Manager, suggested that 2010 applications may surpass those from 2009. The Committee recommended acceptance of the Green Energy Funding and Programming Update provided by staff. By consent agenda, Mr. Bonar moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote. PACE/NAES Monthly Report (February and March) (Deferred by Committee on April 26, 2010) Members were provided the PACE/NAES Monthly Reports for February and March. The reports were provided to allow members the opportunity to monitor what is being sold in electric and the revenues received, which will give members a better understanding of any fluctuations and make improvements if deemed necessary. Although it was not staff=s intention to make a presentation of the reports, they welcomed any questions. The Committee recommended acceptance of the PACE/NAES Monthly Reports for February and March 2010. By consent agenda, Mr. Bonar moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote. By consent agenda, Mr. Bonar moved for acceptance of the Utility Committee Report, seconded by Mr. Leary and carried by a unanimous roll call vote. LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - MAY 24, 2010 The Legislative, Finance, and Administration Committee met on May 24, 2010 with Chairman McGlumphy presiding. Medicare Part B Reimbursement Exception Mr. Anthony DePrima, City Manager, reminded members that effective May 1, 2010, the Electric/Water Meter Reading Division was downsized by two (2) Field Service Representatives (FSR=s). One of the FSR=s elected to retire rather than accept a transfer offer. This employee

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 11 had approximately 33 years of service. Mr. DePrima explained that the International Union of the Electronic, Electric, Salaried Machine and Furniture Workers - Communication Workers of America (IUE-CWA), which represents the FSR positions, has requested that the City make an exception to the Letter of Understanding dated October 12, 2007. This letter indicates that IUE-CWA members who retire on or after January 31, 2010 will not be entitled to have their Medicare Part B premium payments paid by the City. Mr. DePrima stated that it is believed that, had the IUE-CWA employee known that his position would be eliminated effective May 1, 2010, he would have elected to retire prior to January 31, 2010 and thus would have been entitled to the reimbursement. Staff recommended approval of this non-precedent setting request. Responding to Mr. Leary, Mr. DePrima advised members that the FSR positions were the only reductions in force that occurred within a short period of time of the agreement; therefore, there are no other employees affected by the reductions in force to whom this exception would apply. Mr. McGlumphy questioned if a legal opinion was obtained, as he had requested. He relayed concern that the matter would set a precedent. Responding, Mr. DePrima stated that a legal opinion could be provided prior to this matter being presented to Council for final action. In response to Dr. Jones, Mr. DePrima indicated that the employee=s salary would have been preserved had he accepted the transfer; however, the position offered was not a comparable position. He explained that, although he felt confident that the employee could have learned the job, the position offered had another skill set that would have required additional training. At the request of Mr. McGlumphy, Mr. Kenneth Clendaniel, President IUE-CWA Local 88315, advised members that the employee had served as a meter reader for 33 years and that the salary for the position offered to the employee, if transferred, would have been "frozen" for eight (8) years. Responding to Mr. McGlumphy, Mr. Clendaniel stated that he did not foresee a similar situation arising in the future. He assured members that if the employee had anticipated his position being eliminated, he would have retired prior to January 31st; however, he was not advised of the circumstance until after that date. Mr. Salters felt that the employee=s longevity and loyalty to the City should be given consideration and recommended that the request be approved. Mr. McGlumphy reiterated his concerns with the legality of the issue and felt that there should be legal documentation to support any action taken in this regard. Responding, Mr. DePrima relayed no objections to tabling the matter until a legal opinion is obtained. The Committee recommended that the matter be tabled pending receipt of a legal opinion.

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 12 By consent agenda, Mr. Bonar moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote. Discussion - Fiscal Year 2010 Audit Program Staff provided members with a Fiscal Year 2010 Audit Calendar for their review. Mrs. Donna Mitchell, Controller/Treasurer, noted that the agenda reflected Fiscal Year 2011; however, the calendar was for Fiscal Year 2010. She also noted that the draft audit report is scheduled to be presented to the Legislative, Finance, and Administration Committee on October 25, 2010. The Committee recommended acceptance of the Fiscal Year 2010 Audit Calendar. By consent agenda, Mr. Bonar moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote.

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 13 Downtown Dover Business Improvement District (BID) Assessment (Tax) Rate for Fiscal Year 2010-2011 Mrs. Donna Mitchell, Controller/Treasurer, explained that, in accordance with Appendix D, Article III, Section 9(f) of the Dover Code, City Council must adopt a Business Improvement District (BID) budget and assessment every year. Members were provided the FY 2010-2011 Budget showing BID tax revenue and the expenses charged against that revenue, as well as a tax calculation worksheet with recommended rates. Mrs. Mitchell noted that the revenue percentages by zone have been calculated in accordance with Section 9(e) of Appendix D, Article III of the Dover Code and that the amounts were estimated per the reassessed values. Staff recommended approval of the Downtown Dover Business Improvement District (BID) Budget Ordinance for Fiscal Year 2010-11 (attachment to Committee minutes), and the Assessment (Tax) Rate for 2010-11 (attachment to Committee minutes). (City Clerk=s Office Note: During the Budget Hearing of May 25, 2010, Mr. Anthony DePrima, City Manager, advised members that staff=s intention was to maintain the same rate by applying the previous assessed values with the previous assessed rates to determine the tax. Since the BID tax had already been presented to the Legislative, Finance, and Administration Committee, who formulated a recommendation for Council, Mr. DePrima stated that the Ordinance would be amended to reflect the rolled-back rate, for presentation to Council on June 14, 2010.) The Committee recommended approval of staff=s recommendation. By consent agenda, Mr. Bonar moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote. (The First Reading of the Ordinance will take place during the latter part of the meeting.) Proposed Ordinance #2010-13 - Furloughs and Pension Plan Closing During their meeting of April 12, 2010, members considered Proposed Ordinance #2010-13, amending Division 7 - General Employees Pension Plan of the Dover Code. At that time, it was noted that no further action would be required since staff would be making additional amendments based on the Committee=s discussion and that this matter would be brought back to the Committee for further review and recommendation to City Council. Mrs. Kimberly Hawkins, Human Resources Director, advised members that the Ordinance had been updated with comments and suggestions from the April 12, 2010 Committee meeting and that the updates were noted in blue font. The Committee recommended adoption of Ordinance #2010-13 as presented. By consent agenda, Mr. Bonar moved for approval of the Committee=s recommendation, seconded by Mr. Leary and carried by a unanimous roll call vote. (The First Reading of the

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 14 Proposed Ordinance will take place during the latter part of the meeting.) Concerns Regarding Bidding by Minority Businesses Due to time constraints, this item was deferred until the next meeting. Mr. McGlumphy advised members that for the next year, he would no longer be serving as Chair and relayed appreciation to the staff and Committee members for their service to the Committee during his tenure. By consent agenda, Mr. Bonar moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mr. Leary and carried by a unanimous roll call vote. MONTHLY REPORTS - APRIL 2010 By motion of Mr. Bonar, seconded by Mr. Leary, the following monthly reports were accepted by consent agenda: Budget Report Chief of Police Report City Assessor Report City Manager's Report City Planner=s Report Dover Fire Department Report (March) APPROVAL OF 2010 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FIVE (5) YEAR CONSOLIDATED PLAN AND PROPOSED RESOLUTION #2010-04 Members were provided the 2010 Community Development Block Grant (CDBG) Five (5) Year Consolidated Plan and Proposed Resolution #2010-04. Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that the Consolidated Plan (2010-2014) is a five (5) year plan mandated by the United States Department of Housing and Urban Development (HUD). This plan identifies the specific needs concerning affordable housing, homeownership, housing rehabilitation, and community development. She noted that the Consolidated Plan is due for 2010, which is a census year, and that the census data used to develop the plan (from 2000) is dated. She indicated that when the 2010 census data is available, it is staff=s desire to update and amend the Consolidated Plan. Mrs. Russell moved to refer the 2010 CDBG Five (5) Year Consolidated Plan and Proposed Resolution #2010-04 back to the Parks, Recreation, and Community Enhancement Committee to be considered during a Special Meeting on June 28, 2010, and to be immediately considered by Council later that same evening. The motion was seconded by Mr. Ruane. Responding to Mrs. Williams, Mrs. Russell stated that although members of the Committee were

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 15 invited to attend the public hearings, some members were unable to attend and the Committee did not have the opportunity to discuss the proposed Plan or Resolution. The motion to refer the 2010 CDBG Five (5) Year Consolidated Plan and Proposed Resolution #2010-04 back to the Parks, Recreation, and Community Enhancement Committee to be considered during a Special Meeting on June 28, 2010 and to be immediately considered by Council later that same evening was unanimously carried. EVALUATION OF BIDS - EAST NORTH STATE STREET PHASE A PIPE MATERIALS Mr. Anthony DePrima, City Manager, advised members that as a part of the proposed Water Quality Improvements to the City of Dover=s water system, the Public Utilities Department is upgrading the existing water main in Hazel Road, Maryland Avenue and a portion of American Avenue. Staff solicited bids for the East North State Street Phase A pipe materials for the supply of major water line materials to complete this portion of the project. He noted that subsequent bids will include fill material (stone, select backfill, etc.) and paving materials/contractor. This activity is being performed as identified in the Utilities Water Quality Evaluation performed on the water system and will be installed by the Utilities Construction Crew. Staff recommended awarding the bid to the lowest bidder, Belair Road Supply, for the amount of $96,669.50. Mr. McGiffin moved for approval of staff=s recommendation to award the bid to the lowest bidder, Belair Road Supply, for the amount of $96,669.50, seconded by Mr. Ruane and carried by a unanimous roll call vote. EVALUATION OF PROPOSALS - CURBSIDE RECYCLING SERVICES Members were advised that the contract for Curbside Recycling Services with the Delaware Solid Waste Authority (DSWA) will expire on June 30, 2010, with the last pick-up day being June 29, 2010. Mr. Anthony DePrima, City Manager, advised members that staff solicited proposals from qualified vendors earlier in the year to provide this service and that there were four (4) vendors who submitted proposals. Since receipt of the proposals, State legislation has been passed to require the DSWA to exit the collection business, so their proposal was technically withdrawn. Staff has reviewed the remaining proposals and confirmed all of the costs associated with a proposed agreement. In addition, staff has analyzed the cost to provide this service using City labor and equipment. Based on the analysis of this information, staff recommended execution of a contract with Inland Service Corporation at the following rates: July 1, 2010 – June 30, 2011 – Year 1 - $1.18 per pick up (every other week service) July 1, 2011 – June 30, 2012 – Year 2 - $1.19 per pick up (every other week service) July 1, 2012 – June 30, 2013 – Year 3 - $1.21 per pick up (every other week service)

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 16 Mr. DePrima indicated the estimated annual contract value as follows: Year 1 - $ 235,622.40 – based on 7,680 customers on July 1, 2010 Year 2 - $ 239,166.20 – based on 7,730 customers on July 1, 2011 Year 3 - $ 244,758.80 – based on 7,780 customers on July 1, 2012 Noting that the contract would encumber funds that are included as a part of the proposed Budget for Fiscal Year 2010 as well as Fiscal Years 2011 and 2012, Mrs. Williams relayed concerns with the approval of the recommendation since the necessary funds have not been authorized by Council. Responding to Mr. McGlumphy, Mr. DePrima stated that the only cost for the City would be for the purchase of trash barrels. The proposal is that costs for recycling will be covered by a trash fee paid by all residents. He explained that this is no different than other special trash services provided to residents that some take advantage of and others do not, such as bulk pickup. In response to Mr. Ruane, Mr. DePrima confirmed that there is State legislation program that mandates the City to provide recycling and there is a "bottle" bill associated that provides for the collection of deposit fees that the City can apply for at a later date; however, no funds were included in the proposed budget since staff was unsure of how the rebate program would work. Mrs. Williams questioned how other municipalities (Newark and Harrington) eliminated the service through budgetary cutbacks if recycling has been mandated by Delaware State Law. Responding, Mr. DePrima indicated that he was not aware of any municipalities eliminating recycling from their budgets. To his knowledge, he stated that the City of Newark provides trash service and would, therefore, be required to provide recycling services. However, he stated that the City of Harrington does not provide trash service; therefore, their trash provider would be required to provide recycling services. Mr. DePrima stated that this requirement is also true in unincorporated areas for companies that serve county residents. Mr. Salters requested that staff provide members with the details regarding the four (4) proposals submitted. Mr. McGiffin moved for approval of staff=s recommendation to authorize the City Manager to execute the contract with Inland Service Corporation to provide curbside recycling at the following rates: July 1, 2010 - June 30, 2011 (Year 1) - $1.18 per pick up (every other week service); July 1, 2011 - June 30, 2012 (Year 2) - $1.19 per pick up (every other week service); July 1, 2012 - June 30, 2013 (Year 3) - $1.21 per pick up (every other week service). The motion was seconded by Mr. Ruane and carried by a roll call vote of seven (7) yes and two (2) no (Mr. McGlumphy and Mrs. Williams). REAPPOINTMENTS - RECOMMENDED BY MAYOR CAREY Mayor Carey requested the following reappointments for consideration:

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 17 Planning Commission - Three (3) Year Terms to Expire June 1, 2013 John H. Baldwin, Sr. - Fourth District Ron Shomo - Fourth District Michael Hemmig - At-Large Dover Public Library Commission - Five (5) Year Term to Expire June 16, 2015 Lois J. Dunning By consent agenda, Mr. Bonar moved for approval of the reappointments to the Planning Commission and Dover Public Library Commission as recommended by Mayor Carey. The motion was seconded by Mr. Leary and carried by a unanimous roll call vote. FIRST READING - PROPOSED ORDINANCES Council President Hogan reminded the public that copies of the Proposed Ordinance are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Final action by Council on the Proposed Ordinances will take place during the Council Meeting of June 28, 2010. In accordance with Section 1-9 of the Dover Code, Council acknowledged the First Reading of the Ordinance Amendments as read by the City Clerk, by title only, as follows: < ORDINANCE #2010-20 - NOTIFICATION OF TAX RATE INCREASE OVER THE ROLLED BACK TAX RATE [REQUIRED IN ACCORDANCE WITH 22 DELAWARE CODE, SECTION 1105(B)] < ORDINANCE #2010-19 - BUDGET ORDINANCES - 2010/2011 CITY OF DOVER BUDGET < GENERAL FUND - CASH RECEIPTS AND BUDGET < GOVERNMENTAL CAPITAL PROJECTS FUND - CASH RECEIPTS/REVENUES AND BUDGET < GENERAL FUND CONTINGENCY - CASH RECEIPTS/REVENUE AND BUDGET < GENERAL CAPITAL ASSET REPLACEMENT FUND - CASH RECEIPTS/REVENUE AND BUDGET < MUNICIPAL STREET AID FUND - CASH RECEIPTS/REVENUE AND BUDGET < WATER/WASTEWATER FUND - REVENUE AND BUDGET < WATER/WASTEWATER IMPROVEMENT AND EXTENSION FUND - CASH RECEIPTS/REVENUE AND BUDGET < WATER/WASTEWATER CAPITAL ASSET RESERVE - CASH RECEIPTS/REVENUE AND BUDGET < WATER/WASTEWATER CONTINGENCY RESERVE - CASH RECEIPTS/REVENUE AND BUDGET < ELECTRIC REVENUE FUND - REVENUE AND BUDGET < ELECTRIC UTILITY IMPROVEMENT AND EXTENSION FUND - CASH RECEIPTS/REVENUE AND BUDGET

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 18 < ELECTRIC UTILITY CONTINGENCY RESERVE - CASH RECEIPTS/REVENUE AND BUDGET < ELECTRIC UTILITY DEPRECIATION RESERVE - SOURCES AND USES OF FUNDS < ELECTRIC UTILITY FUTURE CAPACITY RESERVE - SOURCES AND USES OF FUNDS < ELECTRIC UTILITY INSURANCE STABILIZATION RESERVE - SOURCES AND USES OF FUNDS < ELECTRIC UTILITY RATE STABILIZATION RESERVE - SOURCES AND USES OF FUNDS < WORKERS COMPENSATION FUND - CASH RECEIPTS/REVENUE AND BUDGET < COMMUNITY TRANSPORTATION IMPROVEMENT FUND - CASH RECEIPTS/REVENUE AND BUDGET < OPEB (OTHER POST-RETIREMENT BENEFITS) RESERVE FUND - CASH RECEIPTS/REVENUES AND BUDGET < PARKLAND/RECREATION RESERVE - CASH RECEIPTS/REVENUES AND BUDGET < LIBRARY RESERVE - CASH RECEIPTS/REVENUES AND BUDGET < DOWNTOWN DOVER BUSINESS IMPROVEMENT DISTRICT - CASH RECEIPTS/BUDGET FY2010-2011 < PROPOSED ORDINANCE #2010-13 - FURLOUGHS AND PENSION PLAN CLOSING COUNCIL MEMBERS ANNOUNCEMENTS Mr. McGiffin encouraged everyone to attend the African American Festival on Saturday, June 26, 2010 from 10:00 a.m. to 8:00 p.m. at Legislative Mall. Mrs. Russell noted that staff had previously indicated assurance that a policy would be developed to allow extra consideration for City of Dover residents when applying for City positions. Responding, Mr. DePrima stated that this is a goal that has been established for the Human Resources Department and that there has been progress made towards this end. However, he noted that, this four (4) person department has been short one (1) employee, which has resulting in some departmental goals not being accomplished. As a result, Mr. DePrima indicated that he has extended this goal and hoped to have a program developed by the Fall of 2010. He explained that a part of the goal was to develop a Handbook amendment to allow preference for applicants who live within the City; however, there were additional goals included to help improve minority representation. Mr. Ruane commended the Fire and Police Departments for the manner in which they handled a recent tragic fire. After speaking with Fire Chief Christiansen, he indicated that it may be necessary for the City to consider additional legislation to promote fire safety and stated his willingness to assist the Department in this endeavor. Echoing Mr. Ruane, Mr. Bonar indicated he has had several conversations with Fire Chief Christiansen as well as the Fire Marshall=s Office, and he stated that there is a distinct need for a review of the City=s ordinances as they relate to fire alarms. Council President Hogan referred to a recent article in a local newspaper which recognized the Police Department and commended the actions of the Department staff for their heroic actions during the fire mentioned by Mr. Ruane. Mr. Salters referred to a natural gas incident that occurred at his residence and stated that the

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 19 Dover Fire Department, Chesapeake Utilities, and Eashum Plumbing responded and resolved the problem. Mrs. Russell noted that Woodcrest is an old complex; however, it was her feeling that there was a need for the City to consider a sprinkler system ordinance. Mr. Leary moved for adjournment, seconded by Mrs. Williams and unanimously carried. Meeting Adjourned at 8:20 P.M. TRACI A. McDOWELL CITY CLERK

CITY COUNCIL MEETING OF JUNE 14, 2010 PAGE 20 All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of June 14, 2010, are hereby approved. CARLETON E. CAREY, SR. MAYOR /TM/jg mag84CC.wpd Exhibit Attached to Original Minutes and File Copy Exhibit #1 - Ordinance #2010-12 - Appendix B - Zoning, Article 3 - District Regulations, Section 30 - Recreational and Open Space Zone and Article 4 - Zoning Bulk and Parking Regulations

EXHIBIT #1 Regular Council Meeting of 06/14/2010 CITY OF DOVER ORDINANCE #2010-12 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That Appendix B – Zoning, Article 3 – District Regulations, be amended by adding a new Section 30, as follows: Section 30. Recreational and open space zone (ROS). 30.1 Purpose and Intent. The purpose of this zoning type is to establish zoning regulations that promote preservation and management of natural and recreational open space and responsible development of active communities that promote healthy and active lifestyles. 30.2 Permitted Uses. No building or premises shall be used and no building shall be erected which is arranged, intended or designed to be used, in whole or in part, for any purpose except the following: 30.21 Public and/or private parks and playgrounds. 30.22 Natural areas, woodland areas, public and private open space. 30.23 Athletic fields, game courts, basketball courts, recreation centers, picnic areas, and pavilions/gazebos. 30.24 Public and/or private swimming pools. 30.25 Boat ramps/docks and fishing piers. 30.26 Golf driving ranges and baseball batting cages. 30.27 Golf courses and country clubs. 30.28 Clubhouses and their associated meeting/activity rooms. 30.3 Accessory Uses. Accessory uses as follows: (a) Accessory uses customarily incidental to the principal permitted use and necessary to the operation of the principal permitted use located on the same premises therewith shall also be a permitted use. 30.4 Conditional Uses. The following uses are permitted, conditional upon the approval of the planning commission in accordance with the procedures and subject to the general conditions set forth in Article 10 Section 1 and to any specified requirements set forth below: 1

30.41 Residential Life-Style Communities inclusive of golf course communities, equestrian communities, and other country club style residential neighborhoods subject to the following: (a) Maximum Density. The maximum density for a Residential Life-Style Community shall be no more than one unit per acre of the total site area, with the density to be clustered on the site. (b) Open Space. A minimum of 75% of the total land area must remain open or devoted to natural open space, active recreation, passive recreation, and/or other recreational use. (c) Housing Types shall include: i. One-family detached dwellings ii. Duplex dwellings iii. Multiplex dwellings iv. Townhouses v. Garden apartments (d) Design standards. The design standards and dimensional requirements (bulk and parking regulations) shall be in accordance with article 4, sections 4.10 and 4.11, except that the planning commission may relax any of these requirements where the developer can demonstrate that such action is desirable and consistent with the objectives of this ordinance and the comprehensive plan. (e) Accessory Uses. Accessory, non-commercial uses customarily incidental to the principal conditional use and any other use necessary to the operation of the principal conditional use located on the same premises therewith shall also be a permitted use. (f) Implementation Plan. As part of an application to the Planning Commission for Conditional Use Review, the applicant must provide a detailed Implementation Plan for which completion of such a plan becomes a condition of approval. At a minimum, the Implementation Plan should do the following: i. Provided documentation for how the site will provide recreation and open space for its residents. This information will be reviewed by the Parks, Recreation, and Community Enhancement committee under the guidelines of Article 5, Section 10. ii. Provide a procedure or documentation for how community resources, inclusive of the recreation elements approved for the Residential Life-Style Community will be maintained for its residents in the event that any commercial, recreational, or otherwise associated portion of the community is dissolved or disbanded. iii. Provide a report to the Planning Commission that details how the proposed Conditional Use is in keeping with the surrounding residential or commercial character. If surrounding land uses are residential in nature, the Implementation Plan should note the density and bulk standards of surrounding neighborhoods. If surrounding land uses are commercial in nature, the Implementation Plan should consider issues of traffic, noise, and compatibility. 2

30.42 Livery stables and riding academies, provided that the corrals shall be at least 200 feet from any dwelling, school, church, eating place and intermittent or running, natural or artificial watercourses. 30.43 Museums, nature centers, and cultural facilities. 30.44 Commercial uses customarily incidental to the principal use located on the same premises inclusive of eating and drinking establishments, retail businesses, and service businesses. (a) Off-Street Parking requirements for commercial uses shall refer to Article 6, Section 3. (b) No structure housing a commercial use shall be located within 30 feet of a lot line. 30.5 Setbacks. No structure, equipment or game court surface permitted under this section shall be located nearer than 30 feet to any lot line. 30.6 Building height. No structure permitted under this section shall exceed 3 stories or 35 feet in height. 30.7 Signs. Signs shall meet the regulations found in article 5, section 4, supplementary sign regulations. 30.8 Parking spaces. Parking for non-residential uses and structures, excluding gazebos, is required at a rate of one parking space per 300 S.F. of floor area or in accordance with Article 6, Section 3, whichever is greater. 30.81 Planning Commission may waive some or all of the required parking if the applicant can demonstrate that development is a fully accessible pedestrian- oriented facility and/or is served by a variety of transportation modes. 30.9 Performance standards. All uses are subject to performance standards as set forth in article 5, section 8.1. 30.10 Site development plan approval. Site development plan approval in accordance with article 10, section 2 hereof shall be required prior to the issuance of building permits for the erection or enlargement of all structures, development of recreation facilities, and prior to the issuance of certificates of occupancy for any change of use. BE IT FURTHER ORDAINED: That Appendix B- Zoning, Article 4- Zoning Bulk and Parking Regulations be amended to read as follows: Section 4.10. R-20, R-15, R-10, R-8, RM-1, RM-2 planned neighborhood design option and recreation and open space zone (ROS). 3

Bulk and Parking Standards for PND within the following zones: R-20, R-15, R-10, R-8, RM-1, RM-2, as well as Bulk and Parking Standards for the ROS zone are as follows: One-Family Multiplex One-Family Lot Duplex Detached Dwellings Line Dwellings Dwellings Dwellings Minimum requirements per dwelling unit: Lot area (sq. ft.) 7,500 6,000 4,500 4,000 Lot width (ft.) 70 65 40 Lot depth (ft.) 100 90 100 Off-street parking 2 2 2 2 spaces Minimum requirements per building: Front yard (ft.) 25 20 25 30 Minimum side yard 8 -- -- 10 (ft.) Total side yards 20 30 10 30 (ft.) Rear yard (ft.) 30 40 30 20 Lot width (ft.) 80 Lot depth (ft.) 80 Maximum permitted: Building height Stories 2 1/2 2 2 1/2 3 Feet 35 24 35 35 Lot coverage 40% 45% 45% 50% Number of dwelling units per 1 1 2 5 building Section 4.11. R-20, R-15, R-10, R-8, RM-1, RM-2 planned neighborhood design option and recreation and open space zone (ROS). Bulk and Parking Standards for PND within the following zones: R-20, R-15, R-10, R-8, RM-1 and RM-2, as well as Bulk and Parking Standards for the ROS zone are as follows: 4

Patio Townhouses Garden Houses Apts. Minimum requirements per dwelling unit: Minimum average lot area (sq. ft.) 3,500 2,200 1,800 Minimum lot area (sq. ft.) 3,000 2,000 1,800 Lot width (ft.) 40 22 Lot depth (ft.) 70 80 Off-street parking spaces 2 2 2 Minimum requirements per building: Lot area 1 acre Lot width (ft.) 100 Lot depth (ft.) 125 Building setback From street (ft.) 15 30 50 From property line (ft.) -- 20 50 Building spacing -- 30 50 Patio area 60% Patio dimension (ft.) 20 Maximum permitted: Building height Feet 24 35 35 Stories 2 3 2 Lot coverage 60% 75% 60% Average No. of dwelling units per 1 8 24 building ADOPTED: JUNE 14, 2010 5