Minutes

ANNUAL COUNCIL MEETING The Annual Council Meeting was held on May 14, 2012 at 7:30 p.m. with Mayor Carey presiding. Council members present were Council President Leary, Mr. Anderson, Mrs. Russell, Dr. McGlumphy, Mr. Lynn, Mr. Bonar, Mrs. Williams, Mr. Hare, and Mr. Hutchison. Council staff members present were Police Chief Hosfelt, Ms. Russell, Mrs. Mitchell, Mrs. Townshend, Deputy Fire Chief West, Mr. Koenig, City Solicitor Rodriguez, and Mrs. McDowell. The invocation was given by Father Joseph McQuaide, followed by the Pledge of Allegiance led by Kristen Dietz of the Dover Youth Advisory Committee. The Star-Spangled Banner was sung by Xavier Fagans. Mrs. Russell presented Certificates of Appreciation to Miss Dietz and Mr. Fagan for their participation in the Annual Meeting. AGENDA ADDITIONS/DELETIONS Mr. Bonar moved for the deletion of item #18 - First Reading of Proposed Ordinance #2012-12, seconded by Mr. Hutchison and unanimously carried. Mr. Bonar moved for approval of the agenda as amended, seconded by Mr. Leary and unanimously carried. ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF APRIL 23, 2012 The Minutes of the Regular Council Meeting of April 23, 2012 were unanimously approved by motion of Mr. Bonar, seconded by Mrs. Williams and bore the written approval of Mayor Carey. PRESENTATION/PROPOSED RESOLUTION NO. 2012-09 - WILLIAM P. MCGLUMPHY The City Clerk read the following Resolution into the record: WHEREAS, William P. McGlumphy was sworn into office as Councilman of the Second District on May 8, 2000 and served with distinction until May 10, 2004; and WHEREAS, William P. McGlumphy was again sworn into office as Councilman of the Second District on May 8, 2006 and served with distinction until May 14, 2012; and WHEREAS, during his service to the citizens of Dover, William P. McGlumphy was elected by his colleagues to serve as Council President from May 2001 through May 2002 and May 2003 through May 2004, and served as Chair of the Legislative, Finance, and Administration Committee and the Civilian Pension Board; as a Member of the Parks, Recreation, and Community Enhancement Committee, the Safety Advisory Committee, the Construction Code Board of Appeals, the Dover Public Library Advisory Commission, the Police Pension Board, and the Dover Recreational Facility Committee; and served as a Liaison to Kent County and to the Chamber of Commerce and Greater Dover Committee; and

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 2 WHEREAS, throughout his tenure, William P. McGlumphy has been an outspoken advocate for government accountability and fiscal integrity; dedicated himself to performing complex research and analysis in considering the concerns of the City; consistently displayed the courage to adhere to his convictions for the betterment of the City; and WHEREAS, William P. McGlumphy has demonstrated commitment to representing his constituents and resolving their concerns. NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council recognize that William P. McGlumphy will be sorely missed and express their sincere appreciation to him and his family for the dedicated years of service and personal sacrifices made on behalf of the City of Dover. BE IT FURTHER RESOLVED that the Mayor and Council wish Councilman McGlumphy and his family success in all future endeavors and direct the City Clerk to make this resolution a part of the permanent records of the City of Dover as a lasting symbol of appreciation and gratitude to William P. McGlumphy. ADOPTED: MAY 14, 2012 Mr. Anderson moved for adoption of Resolution No. 2012-09, seconded by Mrs. Russell and unanimously carried. Mayor Carey and members of Council presented Dr. McGlumphy with the Resolution, a Dover Cup, and a Key to the City. Dr. McGlumphy thanked the Mayor and City Council for the work they do for the City as well as their families. He congratulated those that have been re-elected and Mr. Perza for his election to serve the Second District. Mr. Bonar noted that Dr. McGlumphy has taught members of Council a significant lesson in fiscal responsibility and that he has served the City well with a great deal of distinction. He relayed great admiration for the service Dr. McGlumphy has provided, feeling he has been an excellent teacher. Mrs. Williams stated “well done Bill”. Council President Leary advised Dr. McGlumphy that he felt sure members of Council would be contacting him for guidance from time to time. He also relayed appreciation for Dr. McGlumphy’s dedication. Mrs. Russell relayed appreciation for Dr. McGlumphy’s service as a member of the Parks, Recreation, and Community Enhancement Committee, and stated that she enjoyed working with him on the Services to Seniors Committee. Mr. Anderson stated his honor in serving with Dr. McGlumphy and felt confident that members of Council will keep the City fiscally solvent. He thanked Dr. McGlumphy for his years of dedication.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 3 Mr. Hutchison indicated his appreciation for Dr. McGlumphy’s friendship, service, and dedication. He noted that members of Council still have a lot to do; however, he felt confident that the City is a better place due to the service provided by Dr. McGlumphy. Mr. Hare noted that he personally has learned a lot from Dr. McGlumphy and that he has had a lot of good times over the years and hopes it will continue. Mayor Carey also stated his appreciation for the assistance provided by Dr. McGlumphy to the City and its citizens. OATHS OF OFFICE - MAYOR AND CITY COUNCIL The Honorable Henry duPont Ridgely, Justice of the Delaware Supreme Court, administered the Oath of Office to the Mayor and members of City Council, as follows: Mayor - Carleton E. Carey, Sr. Council - First District - Beverly C. Williams Council - Third District - David L. Bonar Council - Fourth District - Sophia R. Russell The Honorable Charles W. Welch, III, Judge of the Court of Common Pleas, administered the following Oath of Office: Council - Second District - Adam M. Perza Mr. Bonar thanked his wife, Patty, for her patience and support of his service as a member of City Council. He also thanked a life-long friend, Karen Nickerson and her partner, Andy Morlan, for their assistance and support. Mr. Bonar recognized his wife’s colleague, Dr. Pat Sherwin of Wesley College, who is a new resident to Dover and who assisted with his campaign. He noted that without their support and the support of the residents of the Third District, his re-election would not have been possible. ELECTION OF COUNCIL PRESIDENT/VICE-MAYOR Mr. Bonar moved to nominate Thomas J. Leary to serve as Council President/Vice-Mayor for 2012/2013, seconded by Mrs. Russell. Mr. Hutchison moved to close nominations, seconded by Mr. Hare and unanimously carried. The motion for Thomas J. Leary to serve as Council President/Vice-Mayor for 2012/2013 was unanimously carried. RECESS FOR PHOTOGRAPHS (MAYOR AND COUNCIL) AND LIGHT REFRESHMENTS Mr. Hutchison moved to recess for photographs of the Mayor and members of City Council, seconded by Mr. Leary and unanimously carried.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 4 Meeting recessed at 8:03 p.m. Mr. Bonar moved to reconvene, seconded by Mr. Lynn and unanimously carried. Meeting reconvened at 8:24 p.m., with Mayor Carey presiding. Council members present were Council President Leary, Mr. Anderson, Mrs. Russell, Mr. Lynn, Mr. Perza, Mr. Bonar, Mrs. Williams, Mr. Hare, and Mr. Hutchison. CONSENT AGENDA Mr. Hare moved for approval of the consent agenda, seconded by Mr. Bonar and carried by a unanimous roll call vote. PROCLAMATION - NATIONAL PUBLIC WORKS WEEK The City Clerk read the following Proclamation into the record: WHEREAS, public works services and systems, such as transportation, water supply, sewage, solid waste disposal, and public facility maintenance, are essential to the sustainability of our community and the health, safety, and well-being of our citizens; and WHEREAS, the development and efficient operation of public infrastructure, including the planning, design, construction, and maintenance of public works services and facilities is dependent on the efforts and dedication of skilled public works professionals; and WHEREAS, it is in the public interest that our citizens become informed and maintain an active interest in public works programs and services that are so integral to their daily lives. NOW, THEREFORE, I, CARLETON E. CAREY, SR., MAYOR OF THE CITY OF DOVER, DELAWARE, do hereby proclaim May 20th - 26th, 2012 as National Public Works Week in the City of Dover, Delaware and urge all citizens and organizations to learn more about the vital importance of public works and recognize the contributions of dedicated public works employees to the health, safety, and quality of life of our citizens. Mayor Carey presented the Proclamation to Mrs. Sharon Duca, Interim Public Works Director. Mrs. Duca thanked the Mayor, members of City Council, and the City Manager for taking the time out of their special meeting to recognize National Public Works Week, and thanked the 80 plus employees who provide daily services to the community in order to meet their needs related to water, sewer, sanitation, streets, grounds, etc. and relayed appreciation for their dedication and the sacrifices they make with their families in order to assure that the City’s services continue.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 5 PROCLAMATION - NATIONAL WOMEN’S HEALTH WEEK The City Clerk read the following Proclamation into the record: WHEREAS, National Women’s Health Week celebrates the extraordinary progress in women’s health and recognizes that more needs to be done to safeguard the health of women for generations to come; and WHEREAS, women from all walks of life and at every stage of life have unique health needs that should be addressed in their own right; and WHEREAS, keeping women healthy and safe and promoting awareness of women’s health issues depends on partnerships with social, health and other services; and WHEREAS, women can promote health and prevent disease and illness by taking simple steps to improve their physical, mental, social and spiritual health; and WHEREAS, women’s health remains a priority for families, communities and government and our commitment to keeping women healthy is stronger than ever. NOW, THEREFORE, I, CARLETON E. CAREY, SR., MAYOR OF THE CITY OF DOVER, DELAWARE do hereby proclaim May 13 – 19, 2012 as National Women’s Health Week throughout the City of Dover and encourage all citizens to work together to promote and improve the health of women and to increase awareness and understanding of women’s health issues. Mayor Carey presented a Proclamation to Ms. Ronnie Kopec, Director of Maternal Child Services at Bayhealth, as well as Ms. Karen Kelly and Ms. Sue Haddad, Nursing Leaders at Bayhealth. Ms. Kopec relayed appreciation for the recognition and relayed the importance of women’s health. PROCLAMATION - COMMUNITY ACTION MONTH The City Clerk read the following Proclamation into the record: WHEREAS, community action agencies were created when the Economic Opportunity Act of 1964 was signed into law; and WHEREAS, First State Community Action Agency has a 48 year history of promoting self-sufficiency for those with limited incomes; and WHEREAS, First State Community Action Agency has made an essential contribution to individuals and families in Delaware by providing them with innovative and cost-effective programs; and WHEREAS, welfare reform in Delaware has benefitted from the state’s partnership with First State Community Action Agency; and

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 6 WHEREAS, those with limited incomes continue to need opportunities to improve their lives and living conditions, thus ensuring that all citizens are able to live in dignity; and WHEREAS, Delaware and the entire United States must continue to promote economic security by providing support and opportunities for all citizens in need of assistance. NOW, THEREFORE, I, CARLETON E. CAREY, SR., MAYOR OF THE CITY OF DOVER, DELAWARE, do hereby proclaim May 2012 as COMMUNITY ACTION MONTH in the City of Dover in recognition of the hard work and dedication of First State Community Action Agency. Mayor Carey congratulated the First State Community Action Agency for all they do to assist the citizens of the City of Dover as well as the State of Delaware. He assured members that the Proclamation will be forwarded to Ms. Bernice Edwards, Executive Director of the First State Community Action Agency. STATE OF THE CITY MESSAGE - MAYOR CARLETON E. CAREY, SR. Mayor Carleton E. Carey, Sr. presented the State of the City Message (Exhibit #1). UTILITY COMMITTEE REPORT - APRIL 23, 2012 The Utility Committee met on April 23, 2012 with Chairman Bonar presiding. Update - Garrison Oak Technical Park Project Mr. Scott Koenig, City Manager, advised members that he signed the record plat last week and the subdivision can be recorded and the lots can be created. The master plan for the Garrison Energy Center received conditional approval by the Planning Commission on April 16, 2012, which lays the path forward for Calpine to obtain the necessary permitting associated with the facility, as well as continuing review of the site plan and addressing the comments and conditions resulting from the Development Advisory Committee (DAC) review. Mr. Koenig stated that Calpine’s presentation for the New Jobs and Infrastructure Fund grant application for approximately $2.5M is scheduled for review on April 26, 2012. Proposed Ordinance #2012-12 - Amending Chapter 110 - Utilities, Article III - Water Service, Division 1 - Generally, Section 110-61 - Definitions and Section 110-67 Private Wells Mrs. Sharon Duca, Interim Public Works Director, reminded members that Ordinance #2011-20, which was adopted on September 12, 2011, was intended to clarify the uses of wells within the City limits. She noted that, in recent months, situations have arisen which indicate the need for further clarification. Mrs. Duca advised members that Proposed Ordinance #2012-12 adds definitions pertaining to wells, provides clarification to the installation of shallow and agriculture wells, and provides for an administrative variance for shallow wells. Responding to Mr. Bonar, Mrs. Duca stated that the ordinance addresses the recent constituent concerns by defining “farm” as a tract of land for agricultural use and shall include farm residences, buildings, and other structures located on the farm, and being accessories to a farm operation.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 7 Referring to (d)(1) Geothermal heat exchange wells, Mr. Lynn noted that there was very specific language related to these wells. He referenced an issue related to alternative energy encountered by a homeowners association that he represents and he requested that the City Solicitor review this section to ensure that it is consistent with State law. The committee recommended adoption of Proposed Ordinance #2012-12, as presented. By consent agenda, Mr. Hare moved for approval of the committee’s recommendation, seconded by Mr. Bonar and carried by a unanimous roll call vote. (City Clerk’s Office Note: Subsequent to the committee meeting, staff has determined that the proposed ordinance needs further amendment; therefore, no further action was taken by Council regarding this matter and the First Reading (agenda item #18) was deleted from the agenda.) Presentation by The Energy Authority (TEA) - Capital Improvement Projects (CIPs) Related to Units 1 and 2 Mr. Jamie Mahne, Vice President of Client Services and Chief Client Officer of The Energy Authority, advised members that they had been requested to prepare an analysis of the benefits of offering McKee Run Units 1&2 into the next capacity auction for PJM given some concerns regarding the capital improvements required to keep the units active and available. He stated that offering the units for the auction would obligate the utility to maintain the units through the next auction timeframe, which runs from June 2015 to May 2016. Mr. Mahne reviewed the PowerPoint Presentation entitled Cost/Benefit Analysis for City of Dover McKee Run Units 1&2, dated April 23, 2012. Responding to Mr. Bonar regarding locational pricing, Mr. Mahne stated that the premium is sometimes $100 per megawatt-day (MWd). He noted that Dover has paid an average of $180 per Mwd since the 2007/08 planning year and the market has peaked at $245 per MWd. Mr. Bonar requested information on the five (5) year average premium paid and the penalties incurred. Mr. Mahne stated that they recommend the following: # In the short term, offer Units 1 & 2 into the 2015/16 capacity auction in May 2012, noting that the risks are that operational failure will expose Dover to incremental capacity auctions and penalties and if additional significant capital improvements are required in the next three (3) years (i.e., Alternative Scenario), Dover’s cash flows will be at risk. At that point, Dover may decide to replace the capacity in the incremental auction and not incur the capital expense. # In the long term, create an Integrated Resource Plan (IRP) for the City of Dover’s electric utility; survey all supply options, including new generation projects in and around Dover, and weigh against the cost of future capital improvements to Units 1&2; and take a holistic approach, to include future resource needs (i.e., wind); complete by April 2013.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 8 Mr. Bonar noted that an IRP can be very expensive. Responding, Mr. Mahne stated that an IRP based on known data would be less expensive. Mr. Blakeman expressed concern with the effect that the Calpine Energy Center would have on the capacity market once its 300 to 600 Mw is online. Mr. Mahne indicated that it would reduce the price; however, he noted that the effect of coal plant retirements and the increase in natural gas capacity that is being built is being taken into consideration for planning purposes. Responding to Mr. Hare, Mr. Mahne stated that if there was no plant, the City’s net deficit would be $3.5M. The Committee took no action on this item. No further action was taken by Council. Annual Engineering Consultant's Report on the Operation and Maintenance of the Electric System - Fiscal Year 2011 Due to time constraints, this item was deferred until the next meeting. FY 2013 Five-Year Capital Investment Plan (CIP) Due to time constraints, this item was deferred until the next meeting. By consent agenda, Mr. Hare moved for acceptance of the Utility Committee Report, seconded by Mr. Bonar and carried by a unanimous roll call vote. LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE REPORT - APRIL 23, 2012 The Legislative, Finance, and Administration Committee met on April 23, 2012 with Chairman McGlumphy presiding. Authorization to Proceed with Reading Garden - Library Ms. Margery Cyr, Library Director, advised members that on February 28, 2011, Council approved the EDiS contract for the construction of the new Dover Public Library with the following language: “If there are apparent savings during the construction, the City Manager may reinstate options to construct some features that have been removed from the project through value engineering and present them to City Council for approval.” Ms. Cyr explained that during the value engineering process, the Reading Garden was removed from the project; however, economies were found in the Moveable Equipment, Fixed Equipment, and Housekeeping Equipment budget line items that, with the addition of funds from the building contingency budget, would provide adequate funding to reinstate the Reading Garden into the building project at a cost of $123,000. (Clerk’s Office Note: Following the meeting, Ms. Cyr provided a Memorandum dated April 24, 2012 indicating that $69,000 in savings was available in the Moveable Equipment budget line item and $55,000 in Fixed Equipment, creating a total savings

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 9 of $124,000; therefore, no funds would be needed for the Reading Garden from the building project contingency funds.) She noted that there would be no increase in the total project cost. Ms. Cyr noted that, because the Reading Garden would be a long-term aspect of the Library that would last for the life of the building, staff believed it made fiscal sense to build it into the project at this time rather than attempting to incorporate it at a later date. She indicated that landscaping of the site began recently and it would be necessary to decide on this matter very soon. Staff recommended that the Reading Garden be reinstated in the new Library building project. In response to Mr. Shevock, Mr. Scott Koenig, City Manager, explained that change orders for the project have been within 0.5% and contingencies for change orders were built into the authorized project budget. He noted that staff has been working toward the goal of reincorporating the Reading Garden since construction began. The committee recommended reinstatement of the Reading Garden to the new Library building project. By consent agenda, Mr. Hare moved for approval of the committee’s recommendation, seconded by Mr. Bonar and carried by a unanimous roll call vote. Proposed Land Lease Agreement - Boys and Girls Club Mr. Scott Koenig, City Manager, reminded members that the Greater Dover Boys and Girls Club approached the City of Dover several years ago about the potential of locating a new magnet facility at Schutte Park. The area under discussion was a triangle-shaped piece of land that was donated to the City of Dover by Stover Homes with the subdivision of Nottingham Meadows, bounded by the rights-of-way for the new Wyoming Mill Road alignment and the former Wyoming Mill Road alignment. On January 14, 2008, City Council approved Schutte Park as the location for the magnet site for the Boys and Girls Club, without being specific as to its location at Schutte Park and with the stipulation that its use would not cause any loss in current field space for the Central Delaware Soccer Association (CDSA). Mr. Koenig advised members that since that time, the Boys and Girls Club has been working on fundraising and planning for the development of this site. They have provided periodic updates to the Parks, Recreation and Community Enhancement Committee. With the construction and opening of the new alignment of Wyoming Mill Road, the Boys and Girls Club is preparing for submission of a Site Development Plan application to the City of Dover Planning Commission. In order for this application to move forward, the City Manager’s signature as the property owner is required. In addition, the City of Dover must be prepared to enter into a long-term land lease agreement with the Boys and Girls Club. Mr. Koenig stated that the Boys and Girls Club is developing a site layout, which will largely be driven by the requirements of the Delaware Department of Transportation (DelDOT) with regard to the entrance location. He reviewed one potential layout that showed the facility facing Wyoming Mill Road; however, he noted that other renderings have depicted it facing Hazlettville Road. Staff requested that City Council authorize the City Manager to negotiate and execute a land lease that will

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 10 take into account the various site constraints, including the entrance location and impact of the Source Water Protection Overlay Zone on the site. It was anticipated that once the right-of-way of the former alignment of Wyoming Mill Road is vacated, lot lines would be adjusted so that the Boys and Girls Club facility would be on a separate lot from the remainder of Schutte Park. The committee recommended that the City Manager be authorized to negotiate and execute a lease agreement with the Boys and Girls Club for land at the corner of Hazlettville Road and Wyoming Mill Road on which the Boys and Girls Club will construct a new Boys and Girls Club facility. By consent agenda, Mr. Hare moved for approval of the committee’s recommendation, seconded by Mr. Bonar and carried by a unanimous roll call vote. FY 2013 Five-Year Capital Investment Plan (CIP) Mr. Scott Koenig, City Manager, reviewed the proposed draft Capital Investment Plan (CIP) for the General Fund. He explained that staff was currently utilizing this draft in the development of the proposed FY 2013 budget and in reviewing and implementing financial models. Mr. Koenig noted that since the City is facing a deficit next year, a number of the projects included were being reviewed and various changes are being discussed with staff; therefore it was likely that the CIP would have fewer projects when examined by Council during the budget review process. The committee recommended acceptance of the draft Five-Year Capital Investment Plan (CIP) as presented. By consent agenda, Mr. Hare moved for approval of the committee’s recommendation, seconded by Mr. Bonar and carried by a unanimous roll call vote. Presentation - Comprehensive Annual Financial Report (CAFR) - Fiscal Year Ended June 30, 2011 Mrs. Donna Mitchell, Controller/Treasurer, stated that completion of the Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ending June 30, 2011 was delayed for two (2) months and was accomplished in February 2012. She advised members that Faw Casson, the City’s auditor, indicated no significant audit findings for the fiscal year. Mrs. Mitchell reviewed a presentation entitled the Comprehensive Annual Financial Report (CAFR) - Fiscal Year Ended June 30, 2011. Responding to Dr. McGlumphy, Mrs. Mitchell confirmed that the General Employee Pension Fund was funded at 38.1% as of July 1, 2010 and the Police Pension Fund was funded at 52.3%. In response to Dr. McGlumphy, Mrs. Mitchell explained that the Long-Term Liabilities for Compensated Absences and Debt represents the dollar amount of accrued sick and vacation leave for those employees who are eligible to retire. The committee recommended acceptance of the Comprehensive Annual Financial Report (CAFR) - Fiscal Year Ended June 30, 2011 as presented. By consent agenda, Mr. Hare moved for approval of the committee’s recommendation, seconded by Mr. Bonar and carried by a unanimous roll call vote.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 11 Assignment of Emergency Management Coordinator Responsibilities During the Special Legislative, Finance, and Administration Committee Meeting held on March 27, 2012, members considered staff’s request for authorization to permanently assign the duties of the Emergency Management Coordinator (EMC) position to Mrs. Kay Dietz-Sass, Public Affairs Coordinator. At that time, members recommended postponing action regarding the assignment of EMC responsibilities until the Legislative, Finance, and Administration Committee Meeting scheduled for April 9, 2012. During the regular meeting of the Legislative, Finance, and Administration Committee held on April 9, 2012, Dr. McGlumphy advised members that Mr. Scott Koenig, City Manager, was unable to attend the meeting and had requested that consideration of this matter be deferred until the meeting scheduled for April 23, 2012. Mr. Koenig reviewed a request to assign the duties of the EMC to Mrs. Kay Dietz-Sass. He advised members that over the past ten (10) years, emergency management duties have been executed by various positions and departments throughout City government, including the former Community Services Department, the Police Department and, most recently, the Public Services Department. After September 11, 2001, federal and state emergency management requirements became more complex, requiring and tracking National Incident Management System (NIMS) training and mandated a NIMS-compliant Emergency Management Plan. These complexities supported the need for a full-time Emergency Management Coordinator (Grade 120). The City’s first full-time EMC, Mr. Wayne Hutchison, was hired (promoted from the position of Inspector in the Fire Marshal’s Office) on June 2, 2008. Mr. Hutchison retired on December 23, 2010 with a final salary of $53,216. During his tenure, Mr. Hutchison developed notification protocols, equipped an EMC trailer, and secured various Homeland Security grants. In addition, Mr. Hutchison was assigned safety-related duties, such as the routine inspection of the Silver Lake Dam (due to engineering staff constraints) and providing general safety training for various employee groups. Due to the economic environment at the time of Mr. Hutchison’s announced retirement, the former City Manager elected not to fill the vacated position. The duties of the position were divided among various staff members, including the Public Services Manager, the Public Affairs Coordinator, and the City Manager. Mr. Koenig explained that Mrs. Kay Dietz-Sass, Public Affairs Coordinator (Grade 116) has been a key member of the City’s emergency management team since her employment began. He indicated that, after considerable thought, he concluded that the best option to continue the City’s emergency management efforts was to request permission from City Council to assign the EMC responsibilities to Mrs. Dietz-Sass. He advised members that Mrs. Dietz-Sass has degrees in Business Management, General Business, and Marketing, has completed the entire Professional Development Series for Emergency Management, as well as successfully completing Advanced Public Information Officer training. Mrs. Dietz-Sass also completed a number of courses through the U.S. Department of Homeland Security, the Federal Emergency Management Agency (FEMA) and the Delaware Emergency Management Agency (DEMA). Mr. Koenig recommended that the EMC duties be assigned to Mrs. Dietz-Sass on a six (6) month trial basis. These additional duties would be in addition to her current duties as the Public Affairs Coordinator; thus she would be serving as both the Public Affairs Coordinator and the Emergency Management Coordinator. During this six (6) month trial basis, her salary of $40,830 would remain the same and a bonus of $1,100 per month would be paid to compensate her for the added

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 12 responsibilities. This would increase her annualized compensation from $40,830 to $54,030. If her performance in both roles is acceptable to the City Manager at the end of the six (6) month trial, the bonus would be converted to base salary and her grade adjusted from 116 to 120. If the City Manager determines that one person cannot adequately perform the functions of both positions, then Mrs. Dietz-Sass’ responsibilities and compensation would be returned to the former level and other alternatives would be proposed. Mr. Koenig reviewed Wage and Benefit Information outlined in the proposal. Mr. Koenig reminded members that Mayor Carey had submitted a recommendation that the Public Information Officer and Emergency Management Coordinator positions remain separate in a memorandum dated April 17, 2012. Mr. Koenig provided members a memorandum dated April 23, 2012 responding to Mayor Carey’s recommendation and read this memorandum into the record. Mr. Koenig requested that members support assigning the Emergency Management Coordinator duties to Mrs. Dietz-Sass on a six (6) month trial basis. Mr. Hare suggested that the duties of the EMC be distributed among various departments as follows: • Silver Lake Dam Inspection - Public Works Department • Oversight of Ambulance Service - Fire Department Administrative Assistant or Fire Marshal’s Office • Coordination of Shelters - Fire Marshal’s Office • Inspection of Departments for Safety Needs - Human Resources Department Responding, Mr. Koenig noted that the Human Resources Department is currently staffed by only two (2) individuals. Mr. Bonar stated that the City’s need for an EMC was a significant concern. He noted that the savings realized by the City by combining the two (2) positions was significant and expressed his hope that the Committee would release the proposal for consideration by Council. Mr. Hutchison noted that designation of an EMC was required in order for the City to receive funding in the event of a major storm or crisis and felt that this was a critical position for the City. Concurring, Mr. Koenig explained the importance of identifying this position within the organization because it enables the City to apply for emergency funds. He noted that the coordination of responsibilities, collection of data, and completion and submission of paperwork to DEMA and FEMA resulting from a recent hurricane was nearly a full-time job. Mrs. Mitchell advised members that the EMC position had been removed from the budget, so the funds requested would represent an increase in the budget. Mayor Carey stated that the previous EMC had certified training, was able to provide training to City employees in first aid and Automatic External Defibrillator (AED) use, and could perform safety inspections; however, if the positions were merged, the City would have the extra expense of

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 13 obtaining some of these services from outside the organization. He felt that the accuracy of the information he had been receiving over the past year and four (4) months (while responsibilities were divided among three (3) positions) was not up to the previous level (with the exception of the Silver Lake Dam inspection information), and indicated that he had prepared the recommendation because he thought that it was important to have separate employees performing public information and emergency management duties. Responding to Mr. Hare, Mr. Koenig stated that the Public Affairs Coordinator is currently a full-time position and that the EMC duties would be additional responsibilities assumed by Mrs. Dietz-Sass based on current conditions in the City. He noted that this would require prioritizing the many tasks that are directed to Mrs. Dietz-Sass. Mr. Bonar advised members of the Committee that training for AED use, first aid, and other related topics is available for City employees through the Delaware State Fire School at a nominal cost. He felt that the proposal was logical and that the employee assuming dual roles should be compensated for additional responsibilities. Dr. McGlumphy requested that the proposed job class evaluation be completed appropriately to coincide with the job description. He stated that, although he felt the position was necessary, he did not support the proposed salary increase, noting recent salary increases in the range of 21% to 33% for four (4) positions in the City; however, he felt that if the proposal were “honed,” more favorable figures could be achieved. Dr. McGlumphy stated that he did not believe that this was an appropriate time to bring forth these types of salary increases and that, due to the anticipated budget deficit, these matters should not be discussed prior to the receipt of the Salary and Compensation Committee’s report and the budget review. Mr. Shevock stated that he concurred with the combining of the two (2) positions; however, he questioned if Mrs. Dietz-Sass would accept these responsibilities without additional compensation until the budget is presented. Responding, Mr. Koenig stated that he would not consider it fair to request Mrs. Dietz-Sass to assume the additional responsibilities without additional compensation. He indicated that, if approved, his recommendation regarding the combining of the two (2) positions would be part of the draft budget presented for Council’s consideration. The committee forwarded the matter of the assignment of Emergency Management Coordinator responsibilities to City Council for consideration with no recommendation. During the Council Meeting, Mr. Koenig reviewed the material and discussion that occurred during the committee meeting. He noted that the information regarding the first full-time Emergency Management Coordinator, Mr. Wayne Hutchison, indicated he retired on December 23, 2010. However, when Mr. Hutchison retired from the workforce, he had completed seven (7) years of service with the City of Dover; therefore, he is not considered a City retiree. Mr. Koenig reiterated that staff recommended that the EMC duties be assigned to Mrs. Dietz-Sass on a six (6) month trial basis.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 14 Responding to Mr. Anderson, Mr. Koenig stated that Mrs. Dietz-Sass has completed at least 20 comprehensive range of classes offered by both DEMA and FEMA. In response to Mr. Perza, Mr. Koenig indicated that the bonus to be provided to Mrs. Dietz-Sass is based on the fact that she would be serving a dual role. Mr. Hare reiterated concerns that there are certain responsibilities of the EMC that would be better handled by other various departments and questioned the need for two (2) positions since staff is now recommending the two (2) full-time positions be combined into one (1) position. He questioned if there are other similar situations throughout the City and/or the possibility of full-time positions that could adequately serve on a part-time basis. Mr. Lynn moved for approval of staff’s recommendation that the EMC duties be assigned to Mrs. Dietz-Sass on a six (6) month trial basis. These duties would be in addition to her current duties as the Public Affairs Coordinator; thus she would be serving as both the Public Affairs Coordinator and the Emergency Management Coordinator. During this six (6) month trial basis, her salary of $40,830 would remain the same and a bonus of $1,100 per month would be paid to compensate her for the added responsibilities. This would increase her annualized compensation from $40,830 to $54,030. If her performance in both roles is acceptable to the City Manager at the end of the six (6) month trial, the bonus would be converted to base salary and her grade adjusted from 116 to 120. If the City Manager, at his discretion, determines that one person cannot adequately perform the functions of both positions, then Mrs. Dietz-Sass’ responsibilities and compensation would be returned to the former level and other alternatives would be proposed. The motion was seconded by Mr. Bonar. Concurring with Mr. Hare, Mr. Anderson suggested that there is a need to review several positions within the City to determine if they are properly aligned, correctly compensated, and/or if any of them could be combined. He noted that the current recommendation will save the taxpayers over $40,000 annually. He congratulated the City Manager for forwarding the recommendation. Responding to Mrs. Williams, Mr. Koenig stated that anytime a position becomes vacant, staff will be considering consolidation and reviewing the duties associated with the position; therefore, he felt that every time a position becomes vacant, staff has the opportunity to review the real need of the department and make changes for the future. He noted that the deficit that must be overcome for the budget is approximately $802,000 and may require employee layoffs. On a call for the question, the motion that the EMC duties be assigned to Mrs. Dietz-Sass on a six (6) month trial basis, as recommended by staff, was carried by a roll call vote of eight (8) yes, and one (1) no (Mr. Hare). Minority Recruitment Committee Recommendations The Minority Recruitment Committee (MRC) was commissioned by the former City Manager to develop recommendations to improve minority hiring for the City of Dover. The Committee held a series of meetings in 2011 and concluded their work in August 2011. During the City Council Meeting of February 13, 2012, members approved the Committee’s recommendation that the MRC Report be referred to staff for a report to the Committee within 60 days.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 15 Mr. Scott Koenig, City Manager, provided an overview of the proposed Implementation Plan for the Minority Recruitment Committee Recommendations. Responding to Mr. Shevock, Mr. Koenig indicated that he did not foresee any costs associated with implementing the Plan, with the exception of the possible employment of paid interns. He stated that programs that offered college credit for service could potentially be investigated. In response to Mr. Hare, Mr. Koenig stated that he was not aware of any harassment problems within the City; however, the City’s insurance carrier requires mandatory harassment training which is conducted by the Human Resources Department. He stated that the Police Department also offers harassment training for police officers. Responding to Mr. Hare, Mr. Koenig stated that it was the feeling of Dr. Bobby Jones, Minority Recruitment Committee Chair, that it would be necessary to repair the morale problems that currently exist within the workplace prior to addressing minority recruitment issues within the City. This would allow new employees to join the workforce with a sense that they are welcome and that the organization is thriving. He stated that staff was making an effort to post jobs in areas where the minority community would have access and were reaching out to predominantly black colleges. Responding to Dr. McGlumphy, Mr. Koenig stated that factors other than race, including gender, were considered by the Committee in the development of their recommendations. He indicated that concerns were expressed about the numbers of employees in various categories; however, the Committee focused on other points related to employee morale, upward mobility and career ladders, enhanced technology to promote the City’s image, and recruitment and internships for high school and college students. In response to Dr. McGlumphy, Mr. Koenig stated that the City’s workforce does not currently represent the local community demographically by racial composition and that the Committee’s feeling was that the City should adopt the recommendations in the report in order to move in that direction. Responding to Mr. Hare, Mr. Koenig stated that the City does not grant hiring preference to those who reside within City limits; however, all open positions are being advertised within the local community, citizens are aware that the City is hiring, and applications are currently being received. The committee recommended acceptance of the Implementation Plan for the Minority Recruitment Committee Recommendations. Mr. Shevock requested that the City Manager return to the Committee within one (1) year of the implementation of the Minority Recruitment Committee recommendations with a status report. By consent agenda, Mr. Hare moved for approval of the committee’s recommendation, seconded by Mr. Bonar and carried by a unanimous roll call vote.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 16 Filling of Critical Positions During their Regular Meeting of January 23, 2012, City Council approved an amendment to the process for filling critical positions, which was approved by City Council on August 22, 2011, to specify that if a position becomes vacant that will affect public or employee safety or cause financial harm to the City, Permission to Recruit, Hiring Justification Outline, and Wage and Benefit Information for Employee Hiring and Transfers forms shall be submitted to the Legislative, Finance, and Administrative Committee, and that such requests would be forwarded to the City Manager and Controller/Treasurer for their review and recommendation prior to the Committee’s consideration. By unanimous consent, members agreed to consider filling the Mailroom Clerk, Motor Equipment Operator (MEO) I - Water, and Motor Equipment Operator (MEO) II - Wastewater positions and to defer consideration of filling the Motor Equipment Operator (MEO) II - Sanitation, Utility Maintenance Mechanic (UMM) I - Wastewater, and Water Plant Operator I - Water Treatment Plant positions until a subsequent meeting, due to time constraints. Mailroom Clerk Mr. Koenig explained that the function of the Mailroom Clerk is to distribute mail and perform other warehouse responsibilities. Based on staff review, an in-house posting was recommended for this position. The total impact of this position on the FY 2013 budget was projected at approximately $42,000. Responding to Mr. Hare, Mr. Koenig stated that the duties of this position have been shared by a number of storekeepers in the warehouse during previous months, one of whom has since retired. It was staff’s opinion that the position should be filled and that the vacant storekeeper position would be eliminated in FY 2013. He noted that it was expected that this position would be filled within the City and that an internal review would then be performed to determine whether the vacated position should be filled. Staff recommended approval of the request to fill the Mailroom Clerk position. Responding to Dr. McGlumphy, Mr. Koenig confirmed that the position would be filled at a Pay Grade of 13, Step 1, at the bottom of the classification. The committee recommended approval of the request to fill the Mailroom Clerk position, as recommended by staff. By consent agenda, Mr. Hare moved for approval of the committee’s recommendation, seconded by Mr. Bonar and carried by a unanimous roll call vote. Motor Equipment Operator (MEO) I - Water (Downgrade from Water Serviceperson) and Motor Equipment Operator (MEO) II - Wastewater (Downgrade from Heavy Equipment Operator (HEO) II) Mr. Scott Koenig, City Manager, reviewed a request to fill the position of one (1) Motor Equipment Operator (MEO) I - Water (downgrade from Water Serviceperson) and one (1) Motor Equipment Operator (MEO) II - Wastewater (downgrade from Heavy Equipment Operator (HEO) II). Mr. Koenig explained the intent that these positions would be to focus on the maintenance of the

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 17 sewer system and allow the jet truck to operate on a more detailed and defined schedule due to a growing backlog of maintenance needs in the wastewater utility. He noted that the annual wages and benefits of the two (2) current staff persons equated to $126,501 and the revised proposal, which includes the MEO I and MEO II, has a total value of $92,089, which is a reduction of $34,412. Mr. Koenig indicated that staff has deemed these two (2) positions as critical to the long-term maintenance needs of the utility and anticipated that the projected hire date of these employees would be July 1, 2012. Responding to Mr. Shevock, Mr. Koenig indicated that employees in the Water/Wastewater Division are typically hired from outside the City organization, typically from the construction industry. In response to Dr. McGlumphy, Mr. Koenig noted that the positions were downgraded to meet the current needs of the utility to run the jet truck rather than performing the metering and construction crew functions performed by previous staff members and the position classifications were adjusted accordingly. He explained that the utility has had some changing needs and this proposal addresses them by putting two (2) employees on maintenance. The committee recommended approval of the request to fill the Motor Equipment Operator (MEO) I - Water and Motor Equipment Operator (MEO) II - Wastewater positions, as recommended by staff. By consent agenda, Mr. Hare moved for approval of the committee’s recommendation, seconded by Mr. Bonar and carried by a unanimous roll call vote. Public Comment Due to time constraints, there was no opportunity for public comment. Mrs. Williams moved for acceptance of the Legislative, Finance, and Administration Committee Report, seconded by Mr. Bonar and unanimously carried. SAFETY ADVISORY AND TRANSPORTATION COMMITTEE REPORT - APRIL 25, 2012 The Safety Advisory and Transportation Committee met on April 25, 2012 with Chairman Hutchison presiding. FY 2013 Five-Year Capital Investment Plan (CIP) Mr. Scott Koenig, City Manager, reviewed the projects in the Draft FY 2013 Capital Investment Plan (CIP) that were related to safety and financed through the General Fund, as follows 1) The annual contribution to Robbins Hose Company to pay the debt on fire trucks. Mr. Koenig indicated that this is a fixed contribution that would amount to $238,524 for FY 2013. 2) Replacement of the main electric breaker at the police station. Mr. Koenig noted that problems had been experienced with the power supply unit to the police station and the estimated cost of replacing the breaker would be $33,800.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 18 3) The repair and microsealing of the Police Department parking lot. Mr. Koenig noted that this item was previously planned for financing through the General Fund; however, it is now planned for payment through funds that Council has appropriated through a loan and bond for a street paving project; consequently, this project is a General Fund item but will be paid from bond proceeds rather than general tax dollars. 4) The replacement of vehicles. Mr. Koenig explained that the Police Department was the only department proposing the purchase of vehicles related to safety. He advised members that the draft CIP proposed nine (9) vehicles for purchase; however, he requested that the Police Chief reduce the number of vehicles since a “gap” was anticipated in the budget. Mr. Koenig stated that the CIP includes nine (9) vehicles per year for the out years. He noted that Police Department vehicles incur heavy use, long hours, and “rough” conditions. Mr. Hutchison requested that staff provide information on the nature of each vehicle’s use and the mileage breakdown when this matter is discussed during the budget process. The committee recommended acceptance of the report as presented. By consent agenda, Mr. Hare moved for approval of the committee’s recommendation, seconded by Mr. Bonar and carried by a unanimous roll call vote. Update - Dover High Construction Mrs. Ann Marie Townshend, Director of Planning and Community Development, explained that progress was continuing on the construction of the new Dover High School and that steel was currently being set. She advised members that staff recently discussed the signalization of the intersection at the east entrance of the school with the Delaware Department of Transportation (DelDOT) and the Capital School District’s design team and that a signal could not be placed at the intersection until a traffic study is performed. She explained that if the study concludes that a signal is not warranted, an alternate plan must be developed to allow pedestrian access to the school. In response to Mr. Hutchison, Mr. Gary Laing, Community Relations Officer and Public Relations Liaison, DelDOT, explained that the study would measure the speed and amount of traffic during normal conditions and should be done before summer to accurately reflect traffic flow. Mrs. Townshend stated that the monthly construction coordination meeting scheduled during the previous week was canceled and staff was awaiting information regarding rescheduling. She noted that another significant topic to be discussed was pedestrian circulation at the school and that the Capital School District would be coordinating with DelDOT on this issue. Responding to Mr. Hutchison, Mrs. Townshend stated that construction of the high school was on schedule. Briefing on Delaware Department of Transportation (DelDOT) Projects - Gary Laing Mr. Gary Laing, Community Relations Officer and Public Relations Liaison, Delaware Department of Transportation (DelDOT), provided members a briefing on DelDOT Projects, as follows:

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 19 DelDOT Repaving Project The repaving project, which involves milling, patching, and paving of streets, as well as construction of ramps and new crosswalks in pedestrian crossings in seven (7) locations in the City, is underway. Mr. Laing noted that DelDOT was awaiting receipt of a waiver of the noise ordinance from the City for the project and Mrs. Ann Marie Townshend, Director of Planning and Community Development, stated that she would provide this. Mr. Laing explained that most of the work was being performed at night; however, some construction in residential areas (such as curb cutting) was being done during the day. He indicated that DelDOT staff met with members of the Historic District Commission and informed them that new pavement striping at the intersections of State and Loockerman and State and Water Streets would be thermoplastic, as required by the Manual on Uniform Traffic Control Devices, which has no allowance for variation in historic areas. West Dover Connector A public workshop was held two (2) weeks ago to provide information on the engineering and alignment of the roadway. The workshop was well attended and positively received. Real estate acquisition for the project is scheduled for 2012, followed by final design and construction. In response to Mr. Hutchison, Mr. Laing explained that the connector’s interface with the railroad tracks would be a “flyover.” Wyoming Mill Road Project This project is complete. Route 8/Hazlettville Road Connector Mr. Laing did not anticipate that this project would be addressed in the near future due to budget constraints. He indicated that the project was not included when the Community Transportation Plan (CTP) was developed during the previous year and that DelDOT would be seeking input from the City of Dover, the Dover/Kent County Metropolitan Planning Organization (MPO), and the Central Delaware Chamber of Commerce (CDCC) regarding their views on the priority of this project compared to other proposed transportation projects in the area. Mr. Laing advised members that he would be leaving DelDOT on May 4, 2012 and expressed his appreciation for the opportunity to work with the Committee. He noted that no successor had been named to his position and was unsure if another staff member would have direct responsibility for public relations within the agency in the future; however, he indicated that DelDOT personnel were well versed regarding City projects. Briefing on Dover/Kent Metropolitan Planning Organization (MPO) Projects - Rich Vetter During the Safety Advisory and Transportation Committee Meeting held on February 29, 2012, Mrs. Ann Marie Townshend, Director of Planning and Community Development, advised members that the Delaware Department of Transportation (DelDOT) and Department of Natural Resources and Environmental Control (DNREC) had proposed bicycle/pedestrian improvements in the downtown Dover area. Mr. Rich Vetter, Executive Director of the Dover/Kent County Metropolitan Planning Organization (MPO), provided members with a concept plan and artist’s rendering depicting proposed traffic calming solutions for the portion of the bike path that would interface with the area of Loockerman Street just east of Fraizer’s Restaurant. He noted that this section of the

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 20 street is scheduled for repaving in the near future and it is proposed that striping be added at that time to create 4-foot-wide bike lanes. Mr. Vetter explained that traffic calming islands were proposed for the area of Loockerman Street east of Park Drive in an effort to reduce speeds and form a gateway to the downtown area. He stated that a workshop was scheduled to discuss the proposed bicycle/pedestrian improvements on May 10, 2012 in the Council Chambers at City Hall. In response to Mr. Hutchison, Mr. Vetter stated that, if approved, design of the project would take place in FY 13, with construction the following year. By consent agenda, Mr. Hare moved for acceptance of the Safety Advisory and Transportation Committee Report, seconded by Mr. Bonar and carried by a unanimous roll call vote. MONTHLY REPORTS - MARCH 2012 By motion of Mr. Hare, seconded by Mr. Bonar, the following monthly reports were accepted by consent agenda: Budget Chief of Police City Assessor City Manager City Planner Dover Fire Department Capital Investment Plan (CIP) PROPOSED RESOLUTION - NO. 2012-07 - APPROVAL OF 2013 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ACTION PLAN By motion of Mr. Hare, seconded by Mr. Bonar and carried by a unanimous roll call vote, Council adopted Resolution No. 2012-07 - Approval of 2013 Community Development Block Grant (CDBG) Action Plan, as follows: A RESOLUTION APPROVING THE 2012 COMMUNITY DEVELOPMENT BLOCK GRANT ACTION PLAN WHEREAS, the City of Dover is entitled to $226,803 through the United States Department of Housing and Urban Development Community Development Block Grant program; and WHEREAS, the City of Dover has prepared the 2012 Action Plan, in accordance with the United States Department of Housing and Urban Development guidelines, that serve as the primary planning document for identifying and meeting the housing and community development needs for the low and moderate-income residents of Dover; and WHEREAS, the City of Dover is in favor of utilizing the Community Development Block Grant funds for the community development purposes in accordance with the National Community Development objectives of benefitting low and moderate income families, eliminating slums and blight, and meeting other community development objectives; and

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 21 WHEREAS, the United States Department of Housing and Urban Development requires the City of Dover to submit a Consolidated Plan and an Action Plan for Application for Federal Assistance including the proposed use of funds and including certain certifications and policies to obtain its $226,803 entitlement; and use of $8,554 in program income for eligible activities; and NOW, THEREFORE BE IT RESOLVED THAT THE MAYOR AND COUNCIL OF THE CITY OF DOVER APPROVE THE 2012 Community Development Block Grant Action Plan and application for Federal Assistance included in the Action Plan, along with certifications and policies attached and authorize its forwarding to the United States Department of Housing and Urban Development for consideration. ADOPTED: May 14, 2012 PROPOSED RESOLUTION - NO. 2012-08 - AUTHORIZING SIGNATURES FOR BANKING SERVICES ON BEHALF OF THE CITY OF DOVER, DELAWARE By motion of Mr. Hare, seconded by Mr. Bonar and carried by a unanimous roll call vote, Council adopted Resolution No. 2012-08 - Authorizing Signatures for Banking Services on Behalf of the City of Dover, Delaware, as follows: A RESOLUTION AUTHORIZING SIGNATURES FOR BANKING SERVICES ON BEHALF OF THE CITY OF DOVER, DELAWARE WHEREAS, the City of Dover's investment policy includes the investment of funds up to $100,000 per banking institution, investments in the State of Delaware Investment Pool and the purchase and sale of U.S. Treasury and agency securities; and WHEREAS, the banking institutions, brokerage firms, trust companies and other various financial institutions require an Authorizing Resolution for the opening of accounts, and for purchasing, selling, transferring, assigning and handling securities; NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the City of Dover, that the Controller/Treasurer and Assistant Treasurers are hereby authorized to open accounts with banking institutions and purchase, sell, transfer assignment and handle securities and that they are authorized to sign all related forms; BE IT FURTHER RESOLVED that the transactions in these accounts be carried out with any one signature; and That the following are the office holders authorized for these purposes, until further notice: Donna S. Mitchell - Controller/Treasurer Traci A. McDowell - Assistant Treasurer Denise L. Devine - Assistant Treasurer ADOPTED: May 14, 2012

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 22 COUNCIL APPOINTMENTS - 2012/2013 Staff By consent agenda, Mr. Hare moved for approval of the Council Appointments for 2012/2013, seconded by Mr. Bonar and by a unanimous roll call vote, the following appointments were made: City Assessor - Cheryl A. Russell Building Inspector - Ann Marie Townshend City Clerk - Traci A. McDowell Assistant City Clerk - Denise L. Devine Controller/Treasurer - Donna S. Mitchell Assistant Treasurers - Traci A. McDowell - Denise L. Devine Fire Marshal - David J. Truax City Planner - Ann Marie Townshend City Solicitor - Nicholas H. Rodriguez Deputy City Solicitor - William W. Pepper, Sr. COMMITTEE APPOINTMENTS - COUNCIL PRESIDENT Council President Leary requested that members of Council forward their requests and/or recommendations to him via the City Clerk’s Office. Council President Leary moved to defer the Council President Committee Appointments for 2012/2013 until the next Regular Council Meeting, seconded by Mr. Bonar and unanimously carried. MISCELLANEOUS APPOINTMENTS - COUNCIL PRESIDENT Council President Leary requested that the miscellaneous appointments be deferred until the next Regular Council Meeting. He also requested that any requests or recommendations be forwarded to him via the City Clerk’s Office. Council President Leary moved to defer the Council President Miscellaneous Appointments for 2012/2013 until the next Regular Council Meeting, seconded by Mr. Bonar and unanimously carried. MAYORAL APPOINTMENTS - COMMITTEES By consent agenda, Mr. Hare moved for approval of the Committee Appointments for 2012/2013, as recommended by Mayor Carey. The motion was seconded by Mr. Bonar and by a unanimous roll call vote, the following appointments were made: Dover 4th of July Celebration Committee Greg Patterson, President/Vice Chairman Elaine Brenchley Brad Holden, Vice-President Zach Carter (staff liaison) Donna Mitchell, Treasurer/Secretary (staff liaison) Andrea Maucher Carleton E. Carey, Sr., Chairman (ex-officio member) Karen Nickerson Sue Betts

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 23 Dover Public Library Advisory Commission Sean M. Lynn (Council Liaison Member) Downtown Dover Partnership Board of Directors Gary Patterson - Resident of the Downtown Dover Area Cindy Small - Downtown Cultural Arts Representative Gregory V. Moore, President - Downtown Business Owner Laura Simmons, State of Delaware Representative Councilman David L. Anderson - Council Representative Councilman David L. Bonar - Council Representative Councilwoman Sophia R. Russell - Council Representative Scott D. Koenig - City Manager Ann Marie Townshend - Director of Planning and Community Development Election Board Anita L. McDowell Boyer - First District Cherrita L. Matthews - Second District Property Maintenance Code Board of Appeals Heather Ennis (Representative of Homeowners) Charles Martin (Representative of Local Real Estate) Silver Lake Commission Cheryl A. Biddle James Burcham Zachery Carter David L. Edgell Melanie Tymes Dean Holden Nancy H. Wagner FINAL READING - PROPOSED ORDINANCE #2012-10 The First Reading of the following proposed ordinance was accomplished during the Council Meeting of April 23, 2012. Ordinance #2012-10 - Amending Chapter 1 - General Provisions, Section 1-13 - Denial of Permits or Approvals for Failure to Comply with Requirements for Payment, Actions, or Filings (Clean Hands) Council President Leary moved that the Final Reading of the proposed ordinance be acknowledged by title only, seconded by Mr. Bonar and unanimously carried. Mr. Anderson provided members with four (4) amendments for consideration. Due to the complexity of the proposed amendments submitted by Mr. Anderson, Mr. Hutchison suggested that they be forwarded to the Legislative, Finance, and Administration Committee for their review and recommendation.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 24 Mr. Hutchison moved to refer Amendments #1-#4 as proposed by Mr. Anderson to the Legislative, Finance, and Administration Committee for their review and recommendation, seconded by Mr. Bonar. In response to Mrs. Williams, Mrs. Ann Marie Townshend, Director of Planning and Community Development, indicated that although the proposed amendments have been vetted through the City Solicitor, they have not been vetted through the State Legislature. For clarification, she noted that the City Solicitor’s review includes vetting the matter through the State laws and assure that they comply with corporate laws. The motion to refer Amendments #1-#4 as proposed by Mr. Anderson to the Legislative, Finance, and Administration Committee for their review and recommendation was carried by a unanimous roll call vote. (City Clerk’s Office Note: As a result of this motion, there will be no action on Proposed Ordinance #2012-10 at this time.) COUNCIL MEMBERS ANNOUNCEMENTS Council President Leary extended Happy Birthday wishes to Chaplain Dixon. Council President Leary reminded everyone that the Budget Hearings will begin May 22, 2012 at 6:00 p.m. Mr. Lynn thanked the Dover Fire Department and Dover Police Department, as well as the Cheswold and Little Creek Fire Departments for their response to a garage fire next to his house. Mr. Perza thanked the residents of the Second District for entrusting him with the privilege and opportunity to serve them for the next couple of years. Referring to Mr. Lynn’s comments, Mr. Bonar noted that all the fire departments mentioned and 60 other fire companies in the State of Delaware are manned by volunteers, which speaks very highly of our citizens. Mrs. Williams requested that the Fire Chief provide Mr. Lynn the same experience that other members of Council were given which was the ability to walk into a building that was on fire. Mrs. Russell congratulated the Old Dover Days Committee for an outstanding fireworks display provided during the Old Dover Days celebration. Mr. Hare advised members that several years ago, his house caught on fire on Christmas night. Although 80% of the house was destroyed, he stated that the fire department did an excellent job and that they caught the individual who broke into the house and started the fire, which was intended for a house located three (3) doors down. Mr. Anderson thanked the military families and spouses for the continual sacrifices, noting that this past Friday was Military Spouse Appreciation Day and that not only those in uniform serve but also their families. With Armed Forces Day approaching, he relayed appreciation to those that serve this Country in that way as well.

ANNUAL CITY COUNCIL MEETING OF MAY 14, 2012 PAGE 25 Mr. Anderson announced that Open Doors Ministries is having an event tomorrow evening at Dover Downs, to help the homeless and others, and that he has an invitation for those that wish to have more information. Mr. Lynn announced that the Whiteoak/Towne Point Civic Association is meeting Thursday evening, at 6:30 p.m. at Towne Point Elementary and all residents of Whiteoak and Towne Point should attempt to attend. Referring to the Old Dover Days event, Mayor Carey stated that Kent County Tourism needs a great thanks for all they did with all the venues, exhibits, children, parade, etc. as well as the Grounds Department for the City of Dover. Mayor Carey announced that President Obama has proclaimed tomorrow, May 15th, as Peace Officer Memorial Day and that both U.S. and Delaware State flags are to be lowered to half-staff for the day and thanked those officers for their service. Mr. Bonar moved for adjournment, seconded by Mr. Anderson and unanimously carried. Meeting Adjourned at 9:32 P.M. TRACI A. McDOWELL CITY CLERK All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of May 14, 2012, are hereby approved. CARLETON E. CAREY, SR. MAYOR /TM/jg S:\AGENDAS-MINUTES-PACKETS\Council-Minutes\2012\05-14-2012 ANNUAL.wpd Exhibits Attached to Original Minutes Exhibit #1 - State of the City Message

EXHIBIT #1 Annual Council Meeting of 5/14/2012 STATE OF THE CITY CARLETON E. CAREY, SR. MAYOR EXHIBIT #1 Annual Council Meeting of 5/14/2012

CITY OF DOVER VISION The City of Dover is a place where people want to live! Through the team effort of its elected officials, employees, and citizens, Dover is a clean and safe community with a future of balanced growth and opportunity where all citizens are heard, enjoy a high quality of life, and diversity is valued.

CITY OF DOVER POLICE DEPARTMENT

POLICE DEPARTMENT Total Complaints 5 year Comparison Violent Crime 5 year Comparison

POLICE DEPARTMENT Actual Drug Arrests Drugs, Vice, & Organized Crime Section

DOVER’S CRIMINAL INVESTIGATIONS UNIT Dover Criminal Investigations Unit is tasked with: Investigation of most serious crimes Financial and Identity Theft Background Investigations on all civilian and police applicants 2011 – 7 Detectives investigated 2,435 complaints clearing 2,280 Detectives also handled a record number of six homicides this year with a 100% clearance rate. Total of 93.63% of all cases - SIGNIFICANTLY higher than the National Average 2011 – Det. Jeffrey Gott won The American Society of Industrial Safety (ASIS) investigator of the year award for his remarkable case load and clearance rates.

SEX OFFENDERS ENFORCEMENT SECTION Consists of 2 officers - There is between 175-225 sex offenders in Dover at any given time Tasked with the following: *Keep track of all sex offenders who reside, work or attend school in Dover *Make notifications to the public *Obtain warrants if violations occur *Aggressively search for those with warrants and make arrests *Conducts audits on all offenders to ensure compliance Tier 1 - audited annually Tier 2 - audited bi-annually Tier 3 - audited quarterly

DOVER VOLUNTEER FIRE DEPARTMENT

DOVER FIRE DEPARTMENT 1,036 emergency responses last year (up 11.28%) 3,210 hours of firefighter training provided which entailed 50 different training courses (up 21%) Over 3,000+ children participated in fire safety programs Numerous smoke detectors given to City residents – (funding was cut so the quantities were limited)

DOVER FIRE DEPARTMENT * In 2011, Approximately 216 men and women volunteered an estimated 17,244 hours of time to help make Dover and the surrounding area safe. * One member was accepted into the highly recognized “DE State Police Air Rescue Team” Department currently maintains and operates: 5 Engines, 2 Ladders, 1 Heavy Rescue, 1 Brush Unit, 1 Foam Unit, 1 Rescue Boat, 1 Utility, and 2 Command Vehicles. We continue to provide superior fire and rescue services to the greater Dover area!

PUBLIC WORKS DEPARTMENT

PUBLIC WORKS DEPARTMENT WATER WASTEWATER UPGRADES Relined approx. 1000 feet of gravity sewer and 23 manholes to address inflow and infiltration of groundwater and rainwater into the sanitary sewer system. In fiscal year 2012 we will start replacement of approx. 2100 feet of gravity sewer and reline 24 man holes . Every year new projects are planned. Completed the upgrade and main replacement of an aging pump station (Heatherfield) Currently completing upgrades to Foxhall Pump Station . Upgrades to Lepore Pump Station will start next month Four projects of varying degrees are scheduled each year

PUBLIC WORKS DEPARTMENT WATER WASTEWATER UPGRADES Installed 2.4 miles of new water main in FY 12 helping improve water quality, available capacity, increase the system reliability and improve fire protection. Redeveloped multiple well sites to improve capacity and reliability Continue system wide flushing as part of the Water Quality Improvement Program

ELECTRIC DEPARTMENT

ELECTRIC DEPARTMENT  Completed the 69Kv Breaker Replacement Project of our transmission system and increased system reliability.  Completed the Transmission Relay Coordination Project which increased system reliability for the transmission lines.  We continue to replace aging underground lines throughout the City. Completed Buchanan Acres and we are currently working in Huntley Circle and Morris Estates.

ELECTRIC DEPARTMENT Improved Electric Service  Refurbished the McKee Run Unit 3 boiler and turbine systems which will provide for maintaining environmentally sound and efficient plant operations.  Submitted environmental permit renewals for the McKee Run and VanSant power plants.

NEW GROWTH & SOME CHALLENGES WITH PROPERTIES

TAXABLE PROPERTY VALUES Beginning Fiscal VALUE: Year 2012 $3,138,488,660 (July 1, 2011) % of change: decrease of 2.78% Please note: from last year Value Change: This does not $89,834,400 include Senior Citizen or Disability (Value change is the decrease in value from last year) Discount

ECONOMIC CHALLENGES Over 300 registered vacant buildings Slow housing growth Incomplete subdivisions

INSTITUTIONAL GROWTH Completion and opening of Kent County Courthouse in June 2011

INSTITUTIONAL GROWTH Completion and opening of Bay Health Medical Center in January 2012

INSTITUTIONAL GROWTH New Dover High School Under Construction New Capital Administrative Building

PARKS AND RECREATION DEPARTMENT

PARKS AND RECREATION • Silver Lake Commission working with DNREC Restored the stream bank along the St. Jones - Loockerman Street along Park Drive into Silver Lake Park area. Washington Street Improvement - Provide water filtration and increased flow before it enters the St. Jones. Completed with grants with very little cost to the city. • The Silver Lake Commission (SLC) reviewed a plan for a wetland meadow and enhancement along the mill race in Silver Lake Park The Commission reviewed the 2 components 1) Stormwater feature to treat runoff before entering the St. Jones 2) Wetland meadow along the interior and eastern side Athletic leagues hosted approximately 2,100 players this past year. • Wilmington Saving Fund Society (WSFS) graciously sponsored our Concerts On The Green series

PITTS CENTER John W. Pitts Recreation Center hosted 157,931 guests (program & open gym participants, meeting attendees, and spectators) since its opening in April 2008. • Membership ID Cards: FREE Recreation Center ID Cards are issued to track facility usage during Open Gym Periods. (The statistics listed below reflect those that have completed registration.) •Open Gym Registration - Total ID cards issued: 4,145 City Residents: Non-City Residents: 1,880 (45%) 2,265 (55%)

PITTS CENTER Program Attendance FYTD 11 Total 57,474 Open Gym 10,535 Fitness Classes 6,129 Leagues 28,214 Camps 1,153 Sports Classes 3,346 Meetings & Rentals 7,455 Enrichment Classes 642 Program Attendance figures includes participants, parents and spectators in the facility

THE NEW DOVER PUBLIC LIBRARY

ANOTHER BUSY YEAR … The Ribbon Cutting event on April 5 had state-wide participation Capital Campaign nears its goals By August, the steel frame work of the building is visible from the street and the air

WATCH IT GROW! Save the date! Ribbon Cutting Ceremony - September 20, 2012

DOWNTOWN DOVER PARTNERSHIP

DOWNTOWN DOVER PARTNERSHIP •Accredited as one of Delaware’s eight (8) nationally recognized Main Street programs •1651 Volunteer Hours for an investment valued at $33,433 (Independent Sector values volunteer hours @ $20.25/hr) •Five new businesses opened in Downtown District creating full and part time employment Dollars invested in downtown improvements •Façade Improvements - $24,500 •Purchase of 22-24 W Loockerman - $225,000 •Asbestos Abatement at 22-24 W Loockerman - $38,537 •Development of Downtown Master Plan - $16, 681

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

WE THANK YOU FOR SERVING US Dr. William McGlumphy 2nd District Councilman

CITY COUNCIL -2011