Attachment

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA September 28, 2009 - 6:00 P.M. - Council Chambers - City Hall - City of Dover Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at Tmcdowell@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Ambulance Service Needs 2. Letter of Support for Brownfield Grant (Due to time constraints, this item has been placed on the Council agenda for the meeting being held later in the evening) 3. MAG Study - Recommendation to Create Sub-committees to Complete Council Appointed Employees Evaluations 4. MAG Overview of Recommendations 5. St. Jones River Watershed Coordinator Grant 6. Sale of Excess Property - 101 Jefferson Court 7. Ordinance #2009-23 Amending Chapter 2 - Administration, Article IV - Officers and Employees, Divisions 1, 4 and 7; Chapter 102 - Taxation, Article III - Realty Transfer Tax; and Chapter 110 - Utilities, Article I - In General (Related to Charter Amendments) 8. Adjournment by 7:00 P.M. /tm S:\ClerksOffice\PACKETS\2009\Committee\LF&A\09-28-2009\09-28-2009 LF&A.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Legislative, Finance and Administration Committee DEPARTMENT OF ORIGIN: Mayor’s Office DATE SUBMITTED: September 15, 2009 PREPARED BY: Carleton E. Carey, Sr., Mayor SUBJECT: Addition of Eight Hour Shift REFERENCE: Ambulance Service Needs RELATED PROJECT: N/A APPROVALS: City Manager, Controller/Treasurer EXHIBITS: N/A EXPENDITURE REQUIRED: $122,000.00 AMOUNT BUDGETED: $0.00 FUNDING SOURCE (Dept./Page in CIP & Budget): TIMETABLE: ASAP RECOMMENDED ACTION: Have City Manager analyze fiscal year 2008-2009. Carry forward to determine if funds are available. BACKGROUND AND ANALYSIS In FY 2008-09 the city funded an 8 hour ambulance shift from July 2008 through February 2009, operating from midnight to 8:00am. In March 2009 it was shifted to 3:00pm – 11:00pm for better utilization. In July 2009 it was discontinued due to budget constraints. Please see below the number of calls from outside agencies during the coverage months (March through June) and after the coverage months (July & August). Response time statistics for the 3:00pm – 11:00pm shift are being requested from Kent 911, but have not yet been received. 3:00pm – 11:00pm coverage by outside agencies: March 69 calls April 74 calls May 73 calls June 75 calls July 119 calls August 123 calls

Ms. Kathy Stiller Department of Natural Resources and Environmental Control Site Investigation and Restoration Branch 391 Lukens Drive New Castle, Delaware 19720 Re: USEPA Brownfield Coalition Assessment Grant Application for Dover, Delaware Confirmation of Coalition Membership Dear Ms. Stiller, I am writing to confirm that the City of Dover is proud to be a coalition member for the USEPA Brownfield Coalition Assessment Grant. We understand that Delaware Department of Natural Resources and Environmental Control (DNREC) will be lead Agency for this Coalition. The City of Dover and the Downtown Dover Partnership and DNREC have formed this Coalition to apply for a $1,000,000 assessment grant to assist in the identification and assessment of properties in the Dover area to support redevelopment initiatives, economic growth and to protect public health and the environment. As lead Agency, we understand that DNREC will assume the administrative and financial tracking responsibilities required under the Grant and Cooperative Agreement with the USEPA and for appropriately reporting to the USEPA. As Coalition members we have all proven our dedication to improving the living conditions of so many in the Dover community and in DNREC’s case, protecting the public health, welfare and the environment in the State of Delaware. The City of Dover looks forward to working with the Coalition members to continue to address environmental issues in the Dover study area and to continue our efforts in redevelopment, job creation and improving the lives of our citizens. We strongly believe that our Coalition, if awarded the USEPA Brownfield Assessment Grant, will be able to address long standing environmental issues and concerns that have been affecting our citizens and our community and hindering positive redevelopment. We are prepared to enter into the Brownfield Assessment Coalition Memorandum of Agreement with our Coalition partners. Please feel free to contact this office if you have any questions regarding our participation in this Coalition. Sincerely, William G. Neaton Economic Development Director Economic Development Office – 14 The Plaza, Dover DE 19901 – 302.678.2940

DRAFT BROWNFIELDS ASSESSMENT COALITION MEMORANDUM OF AGREEMENT BETWEEN THE FOLLOWING PARTIES: DELAWARE DEPARTMENT OF NATURAL RESOURCES & ENVIRONMENTAL CONTROL, CITY OF DOVER AND DOWNTOWN DOVER PARTNERSHIP PLEASE NOTE: The following eight items are the MINIMUM elements that must be included in an Assessment Coalition Memorandum of Agreement (MOA). Applicants are responsible for adhering to these elements and signing this MOA prior to the expenditure of any assessment funds. Members may choose to add elements to this MOA. The MOA is required per the Brownfields Assessment Grant Terms and Conditions and must be reviewed by the EPA Project Officer to ensure (1) all required MOA elements are included; (2) all coalition members have signed the MOA; and (3) any additional MOA elements are legal under the Brownfields Law and do not contradict Assessment Grant Terms & Conditions. This Memorandum of Agreement documents the roles and responsibilities of the various parties involved in the Assessment Coalition with regard to EPA Cooperative Agreement No: BFxxxxxxxxx. 1. On _______EPA awarded the Cooperative Agreement to the Lead Coalition Member, Delaware Department of Natural Resources and Environmental Control (DNREC). The grant period is _________________________. DNREC is responsible to EPA for management of the cooperative agreement and compliance with the statues, regulations, and terms and conditions of the award, and ensuring that all members of the coalition are in compliance with the terms and conditions. 2. It is the responsibility of DNREC to provide timely information to the other Coalition Partners regarding the management of the cooperative agreement and any changes that may be made to the cooperative agreement over the period of performance. 3. The Coalition Partners are the City of Dover (City) and the Downtown Dover Partnership (DDP). The contact information is as follows: City of Dover William G. Neaton 14 The Plaza, Dover DE 19901 302-678-4858 wneaton@dover.de.us Downtown Dover Partnership William G. Neaton 14 The Plaza, Dover DE 19901 302-678-4858 wneaton@dover.de.us 4. Activities funded through the cooperative agreement may include inventory preparation, site selection criteria development, assessments, planning (including cleanup planning) relating to brownfield sites, and outreach materials and implementation, and other eligible activities.

DRAFT DNREC may retain consultant(s) and contractors under 40 CFR 30.36 to undertake various activities funded through the cooperative agreement and may award subgrants to other coalition members under 40 CFR 31.37 for assessment projects in their geographic areas. Subgrantees are accountable to DNREC for proper expenditure of funds. 5. The Lead Coalition Member will procure the consultant(s) in compliance with 40 CFR 31.36 requirements. The Lead Coalition Member will issue the Request for Proposals or Request for Qualifications and will be the entity responsible for receipt of the submitted proposals and selection and award of contracts. DNREC will consult with other coalition members in making selections of consultants and contractors and negotiating the terms of agreements. 6. The Lead Coalition Member in consultation with the Coalition Partners, will work to develop a site selection process based on agreed upon factors and will ensure that a minimum of five sites are assessed over the life of the cooperative agreement. Selected sites will be submitted to EPA for prior approval to ensure eligibility. Note: Lead Coalition Member and each of the Coalition Partners may agree upon a minimum number of sites assessed per member at the start of the cooperative agreement to ensure equitable distribution of funds across all members’ jurisdictions. 7. Upon designation of the specific sites, it will be the responsibility of DNREC to work with the coalition member in whose geographic area the site is located to finalize the scope of work for the consultant or contractor. It will be the responsibility of this member to obtain all required permits, easements, and/or access agreements as may be necessary to undertake assessments at the selected site. If this member does not have the capacity to perform these activities, DNREC may assist in securing necessary site access agreements and permits. 8. The Lead Coalition Member is responsible for ensuring that other activities as negotiated in the workplan, such as community outreach and involvement, are implemented in accordance with a schedule agreed upon by DNREC and the coalition member in whose geographic area the site to be assessed is located. Agreed: ________________________________ DNREC/Date ________________________________ City of Dover/Date ________________________________ Downtown Dover Partnership/Date

ACTION FORM PROCEEDING: Legislative and Finance Committee DEPARTMENT OF ORIGIN: Human Resources DATE SUBMITTED: 9/15/09 PREPARED BY: Kim Hawkins, Human Resources Director; Anthony DePrima, City Manager SUBJECT: Council Appointed Employee’s Evaluation REFERENCE: Management Advisory Study (MAG) Section 4 RELATED PROJECT: Management Advisory Study APPROVALS: City Council EXHIBITS: MAG Study previously provided EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): TIME TIMETABLE: RECOMMENDED ACTION: Approval to develop review committees for employees that report directly to Council. BACKGROUND AND ANALYSIS This matter of Council Appointee Evaluations was discussed at the Legislative and Finance Committee meeting held on July 10, 2009 during the review of the entire MAG Study. During that meeting I was advised to bring forth a separate committee action form for this matter. There are five (5) positions within the City that report directly to City Council. In Section 4 of the 2009 MAG Study, Recommendation #8 states “Create a committee structure to evaluate Council appointed positions that would make recommendations on compensation adjustments for the evaluated employee.” MAG recommended that specific evaluation committees be created to evaluate positions that report directly to Council. These include the City Manager, City Clerk, Planning Director, Finance Director, and Tax Assessor. The evaluation completed by the committee would be forwarded to City Council for review and final approval since City Council, as a whole, is responsible for providing performance evaluations. The Committees would be made up of varies Committee Chairman who inter-act the most with the employee and the Council President. If approved, the implementation would occur during the 2010 evaluation period. Below is the excerpt from Section 4 that provides the observation for the rational for this recommendation and the recommended Committee Structure. Observations There is an inherent challenge for Council Members to evaluate the work performance of the management employees reporting directly to the whole Council. A primary concern is that Council Members are not typically in daily contact with the reporting employee to the same extent as a supervisor is with an employee. The interactions and therefore the observations are infrequent and often occur during periods of stress (public meetings or other times when significant issues are at stake). To compound the challenge, some Council Members, due to their time commitments and also the committees in which they are most active, may or may not have sufficient opportunity to observe and evaluate the work performance of the employee. As an added point, if Council Members are not able to attend the training provided annually on the PFP system, they may not be

familiar with the forms and nuances of the system to enable full and appropriate consideration of all facets of the work being completed. It was noted in Section 2.0 that Council Members should attend the annual training to ensure their full understanding of this (complex) system of evaluation. While the process established for the evaluation of Council appointed positions has some good elements (requiring initial self evaluations, meeting first without the employee, using core competencies and a scoring system similar to other employees, dropping off the high and low scores), a slight adjustment in process may be helpful. Committee Structure for Council Direct Reports The City should consider establishing a three (3) or four (4) person committee structure for evaluations that would assign Council Members with the most familiarity with the work performance of the employee to that particular committee. For example, the Council Members who work most closely on financial affairs and budgetary matters would be assigned to a four (4) person committee to initially evaluate the performance of the Finance Director. The Council Members who work most closely on planning and community development issues and committees would take the lead on the evaluation of the Planning Director position. MAG further suggests that the Council President be assigned to each of these committees. As an example, for the Planning Director position, the committee might include the following committee chairs: �Parks, Recreation, and Community Enhancement �Safety Advisory and Transportation �Planning Commission Chair �Council President For the Tax Assessor position, the committee might include the following committee chairs: �Legislative, Finance, and Administration �Chair of the Tax Appeal Board �Council President For the Finance Director, the committee might include the following committee chairs: �Legislative, Finance, and Administration �Chair of the Pension Committee �Utility Committee �Council President For the City Clerk, the committee might include the following committee chairs: �Legislative, Finance, and Administration �Parks, Recreation, and Community Enhancement �Utility Committee �Council President For the City Manager, while it is ultimately the entire Council that is responsible for this evaluation, the full Council should rely upon the approach established in the contract for the City Manager. It indicates that the review would be completed by five (5) Council Members, including the Council President and the chairs of the standing committees. The five (5) person committee should therefore include: �Legislative, Finance, and Administration �Parks, Recreation, and Community Enhancement �Safety Advisory and Transportation �Utility Committee �Council President

This committee would conduct the initial meeting with the City Manager to review the self evaluation and provide a recommendation to the full Council. This action could make the full evaluation meeting with Council a more productive and focused meeting. This process adjustment would allow Council Members to discuss performance in greater detail and have a more meaningful set of interactions with the employee. The outcome of the initial evaluation would then be presented to the whole Council as a recommendation, with the whole Council then confirming the recommendation or making any adjustments deemed appropriate.

ACTION FORM PROCEEDING: Legislative, Finance and Administration Committee AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Human Resources DATE SUBMITTED: 4/1/09 PREPARED BY: Anthony DePrima, City Manager and Kim Hawkins, Human Resources Director SUBJECT: Implementation of Management Advisory Group (MAG) Phase 2 –Pay for Performance Evaluation System REFERENCE: Phase 2 of MAG report RELATED PROJECT: Phase 1 of MAG report APPROVALS: City Council EXHIBITS: Exhibit 1: 21 Recommendations from MAG Exhibit 2: Employee Recommendations Exhibit 3: Performance Scores Definition Exhibit 4: PFP Instructions Exhibit 5: PFP Policy Exhibit 6: MAG Phase 2 Report Exhibit 7: MAG Study Recommendation/Explanation of Awarding Salary Increases EXPENDITURE REQUIRED: AMOUNT BUDGETED: FUNDING SOURCE (Dept./Page in CIP & Budget): TIMETABLE: Some aspects will be completed immediately while others will be presented by February 2010. RECOMMENDED ACTION: Implementation of Recommendations as Outlined in Exhibits BACKGROUND AND ANALYSIS In September 2007 City Council indicated a desire to have the Pay for Performance Policy and its implementation to be evaluated to determine whether it is meeting its original purpose. Interviews were held with two consultants in November /December 2007. At the January 28, 2008 Leg and Fin meeting, the request to award the bid was tabled awaiting mid-year review of the budget for funding purposes. At the March 10, 2008 Leg and Fin meeting it was recommended to approve the awarding of the bid to Management Advisory Group (MAG). Council approved this recommendation on March 24, 2008. In May 2008 the scope of the contract expanded to review the salaries of non-bargaining employees and the salary ranges of all non- bargaining positions. MAG obtained our current PFP documents from the City Manager and Human Resources Director. MAG conducted two sets of mandatory on-site meetings with all non-bargaining employees. One set of meeting was held in October and the other in December. The meetings were intended to obtain the employee’s perceptive of the weaknesses and strengths of the PFP system and solutions to their concerns. The meetings were also held with City Council members. At the conclusion of the second meeting, employees were encouraged to submit a confidential survey regarding the PFP evaluation system. MAG issued the final report on February 13, 2009 and presented its findings to LFA on February 23, 2009. Based upon the conclusions that MAG developed, the following is their recommendations, as well as the City Manager’s and Human Resources for your consideration. Indicated in Exhibit 1 are MAG’s 21 recommended changes to the current evaluation system. In addition, Exhibit 2 provides a summary of the comments from the employees that will be implemented or further studied. As previously mentioned, all non-bargaining employees and City Council had an opportunity to provide input to the strengths, weakness and solutions of the PFP evaluation system.

One of MAG’s recommendations (recommendation #5-#7) was to change the title of three performance ratings. Exhibit 3 illustrations these suggested changes. As a result of MAG’s recommendation as well as the employee’s comments, the PFP instructions and policy needed to be updated to reflect the recommendations. The updated instructions are provided in Exhibit 4 and the policy is Exhibit 5. While the MAG Phase 2 report was provided at the February 23rd Leg and Fin meeting is it being provided once again in electronic format.

Exhibit 1 Management Advisory Group (MAG) Phase 2 Recommendation April 13, 2009 Rec. # Page # in MAG’s Recommended Action City’s Recommended Action Estimated Phase 2 Report Completion Date & Related Exhibit Attached 1 2‐4 Change the PFP policy to require training for supervisors Update language: Change the PFP Immediately once per year. If training is not attended, deny any policy to require training for salary increase for which the supervisor may be eligible. supervisors once per year. If training is not attended, deny any salary increase for which the supervisor Exhibit 5, page 5 may be eligible. The City Manager Exhibit 5‐ may excuse a supervisor from the Appendix A training. 2 2‐5 Establish a more precise time frame within the set of This recommendation is in reference Immediately Instructions so as to clearly define the time allotted for to allowing sufficient time for the HR each step in the performance review cycle. Director to review evaluations. The instructions have been updated to Exhibit 4, page 1 include a time frame of five days. 3 2‐5 Written quarterly reviews should be done by Required quarterly reviews will begin Implement July Department Heads, and documented in the evaluation July 1, 2009 as this review cycle is 1, 2009 Exhibit 4, page 2 by entering into the PFP software. ending. 4 2‐5 All evaluated employees should conduct self evaluation, The PFP instructions will be updated Effective with with the purpose of then comparing them at the formal accordingly. reviews to be Exhibit 4 performance evaluation meeting. completed by page 3 May 31, 2009. 5 2‐6 Change the current performance form label of “Good” The PFP evaluation will be updated. Effective with to “Meets Expectations” on the evaluation form. reviews to be Exhibit 3 completed by Exhibit 4, page 4 May 31, 2009. 6 2‐6 Change the current performance form label of The PFP evaluation will be updated. Effective with “Acceptable with Some Improvements Needed” to reviews to be Improvement Needed” on the evaluation form. completed by Exhibit 3 May 31, 2009. 7 2‐7 Change the current performance label of “Outstanding” The PFP evaluation will be updated. Effective with to “Results Rarely Achieved by Others.” reviews to be Exhibit 3 completed by Exhibit 4, page 4 May 31, 2009.

Exhibit 1 Management Advisory Group (MAG) Phase 2 Recommendation April 13, 2009 Rec. # Page # in MAG’s Recommended Action City’s Recommended Action Estimated Phase 2 Report Completion Date & Related Exhibit Attached 8 4‐5 Create a committee structure to evaluate Council If Council wants to pursue further, a FY10 appointed positions that would make recommendation separate Committee Action Form on compensation adjustments for the evaluated will be prepared and presented. employee. 9 4‐5 Apply the changes noted in Section 5.0 to the This will become a goal for the HR Present to City development of Core Competencies for the Council Director for FY10. A committee will Council by positions. See recommendation #15 ‐ Streamline and be formed to formally discuss. February 2010. enhance Core Competency and Element statements. 10 5‐3 Base the movement within the pay grade on the According to MAG, this will be concept of a “normal progression” career plan for achieved by implementing employees who “Meet Expectations” to reach midpoint Recommendation #11. in 10 years. 11 5‐4 Use the arithmetic midpoint of the position’s assigned Use the described method for July 1, 2009 Exhibit 5 pay grade as the basis for calculating potential calculating July 1, 2009 pay page 1 & 2 performance adjustments. increases. Ex. 5 Appexd. A 12 5‐6 Establish a simple and straightforward program for Create a matrix for awarding July 1 July 1, 2009 potential adjustments of zero (0) through an annually pay increases. determined percentage amount, based on budget Appendix will be created based upon Exhibit 5 – availability. budget and market conditions. Appendix A 13 5‐8 Automate the statistical normalization of rater This will become a goal for the HR Present to City comparisons. Director for FY10. Council by February 2010. 14 5‐8 Hold up salary adjustments until all evaluations are Not recommended for Immediately complete; publish stragglers on the City’s intranet. implementation. We wish to continue our current practice of extending the specific tardy department head’s salary increase. “Stragglers” will be handled by the Exhibit 4, page 1 supervisor.

Exhibit 1 Management Advisory Group (MAG) Phase 2 Recommendation April 13, 2009 Rec. # Page # in MAG’s Recommended Action City’s Recommended Action Estimated Phase 2 Report Completion Date & Related Exhibit Attached 15 5‐12 Streamline and enhance Core Competency and Element This will become a goal for the HR Present to City statements. See Rec. #9 Director for FY10. A committee will Council by be formed to formally discuss. February 2010. 16 6‐1 Continue to complete performance evaluations annually No additional action needed. Exhibit 4, page 2 as dictated by current policy. 17 6‐2 Require quarterly review of all employees being Additional monitoring of quarterly Implement July Exhibit 4, page 2 evaluated. reviews will be maintained. 1, 2009. 18 6‐3 Add responsible participation in the PFP as a The core competency for Supervisory Effective July 1, Supervisory Core Competency Skills will be updated accordingly. 2009 19 6‐3 Add monitoring and reminder goals to the Core Rather than modify the PFP Effective July 1, Competency of the HR Director – Include monitoring goals evaluation for this one 2009 for the HR Director to ensure consistency with the City’s recommendation, this suggestion will Strategic Plan, reminding departments of the need for become a standing goal for the HR quarterly reviews, setting up annual training on the program, Director. and identifying unusual scoring patterns to the City Manager, the Department Head and the rater. This should be reflected in the Supervisory Core Competency. 20 6‐4 Continue the current process for appeals. No action needed. Exhibit 5, page 4 21 6‐5 Any pay out for performance over the maximum of the In addition to the proposed Effective with range is a lump‐sum one‐time payout that does not roll language, add, “the city reserves the pay increases into the base salary. right not to award any pay increase awarded on July for employee’s whose salary is over 1, 2009. Exhibit 5, page 2 the maximum of the range.” Exhibit 5 – Appendix A

Exhibit 2 Management Advisory Group (MAG) Phase 2 Employee Comments April 13, 2009 Section 3 and Appendix 2 of Management Advisory Group’s (MAG) Phase 2 report provides the anonymous views of employees and supervisors who attended workshops conducted by MAG in October and December 2008. The views are in response to a series of questions posed to employees who are evaluated under the PFP Evaluation System. Employees were also asked to review the entire MAG Phase 2 report and submit any additional comments to either the City Manager or the Human Resources Director. While employees were provided approximately two and half weeks to submit additional comments, no additional comments were received. In analyzing Section 3 and Appendix 2, the City Manager and Human Resources Director extensively reviewed all the comments. While all the comments were considered valuable and will be reviewed frequently, eight recommendations will be further addressed. They are indicated in the table. Blank Intentionally

Exhibit 2 Management Advisory Group (MAG) Phase 2 Employee Comments April 13, 2009 Rec. Employee Suggestion Intended City’s Date of Completion Recommendation 1 Goals don’t flow down in a timely City Council/City Manager Implemented in FY 10. manner and Mayor to establish goals for Department Heads by March 31 of each year. Exhibit 4, page 5 2 Goals are not realistic under All supervisors are to be Effective with current work load mindful of the number of evaluations for FY 10. goals being assigned. Employees can create their own goals for review by their supervisor. The HR Director Exhibit 4, page 5 & 6 will be more astute to the Exhibit 5, page 2 number being assigned. 3 All evaluations are due at the same This issue is being addressed July 1, 2009 time thus causing a heavy work by requiring quarterly load in a short amount of time reviews. Thus as the fiscal year ends three fourths of the evaluation should be Exhibit 4, page 2 complete. 4 Implement weighting of goals This option will be considered If implemented, it will an evaluation committee that become effective in FY will be created. 10. 5 Do not require an explanation for a Explanation for a score of Effective for performance score of three and three will not be required. evaluations being four completed for FY09. Exhibit 4, page 4 6 High performers are not awarded The salary matrix provides for Immediately additional compensation for employees who receive a higher than average performance score. An improved effort will be provided by supervisors in rewarding high performers with non-monetary incentives and actions. 7 Provide educational training to Training will begin being Immediately employees on the PFP system and offered to employees. process Exhibit 5, page 5 8 Do not assign goals during It is realized that the Immediately probationary period probationary period is a time for learning. Only when necessary will goals be Exhibit 4, page 2 assigned.

Exhibit 3 Management Advisory Group (MAG) Phase 2 Recommendations Performance Rating Definitions April 13, 2009 PERFORMANCE RATING DEFINITIONS OUTSTANDING: RESULTS RARELY ACHIEVED BY OTHERS Performance Points 5 MAG Rec. #7, page 2-7 of MAG Phase 2 report This level of performance represents the achievement of significant and exceptional results. The employee consistently achieved additional, significant results beyond established targets and significantly exceeds position requirements. The employee actively and continuously exhibits initiative and innovation and serves as a model for others. COMMENDABLE: Performance Points 4 Demonstrates above-average knowledge, skills, abilities and effort. Performance goes beyond the position requirements and exceeds expected results. Performance measurably exceeds expectations. Employee exhibits initiative and resourcefulness in going beyond expectations of job performance in accomplishing goals and objectives. GOOD: MEETS EXPECTATIONS Performance Points 3 MAG Rec. #5, page 2-6 of MAG Phase 2 report The employee is effective, with good, solid performance as demonstrated by achieving a majority of results and demonstrating most competencies successfully. Job performance is accomplished in an efficient and competent manner. This performance is fully satisfactory and meets acceptable or expected standards for the job. Work efficiency and effectiveness support the overall productivity of the work unit. Employee accomplishes assigned tasks with expected direction and assistance. ACCEPTABLE WITH SOME IMPROVEMENT NEEDED: IMPROVEMENT NEEDED Performance Points 2 MAG Rec. #6, page 2-6 of MAG Phase 2 report The employee has met the basic expectations however has not performed the assigned duties in a fully competent manner thus requiring additional support of others. Inefficiency and/or ineffectiveness effects the productivity of the work unit. Does not consistently demonstrate the required knowledge, skills, abilities and/or effort for this position. Higher level of performance may be possible through increased effort, training and guidance. Performance at this level will be subject to continued careful assessment. UNSATISFACTORY: Performance Points 1 Minimum standards for the job are not met; job duties are performed at a marginal level or not performed, or must be performed by others. There is minimal contribution to work unit productivity. Employee is unwilling or unable to improve. A need for further improvement is clearly recognized, identified and must occur immediately. Employee requires constant and close supervision. Continued performance at this level, absent any potential or evidence of immediate improvement will lead to progressive discipline up to and including termination.

Exhibit 4 Management Advisory Group (MAG) Phase 2 Revisions to PFP Instructions April 13, 2009 Instructions for the Performance Review Cycle Please realize that annual reviews are due to the Human Resources Director by May 31. A supervisor shall arrange to meet with the employee to discuss the employee’s evaluation no later than June 25 of each year. Failure to provide a completed evaluation for an employee in a timely manner, no later then July 1, will cause the effective date of the Department Head’s pay-for-performance pay increase, if one was granted, to be extended by the number of days the evaluation was not received if the failure to submit a completed evaluation harms the evaluated employee. For example, if pay-for-performance increases are effective July 1 and the Department Head submits the evaluation on July 5 (five days late), the Department Head’s pay-for-performance increase would be granted, if he or she was entitled to one, on July 5. The employee’s increase, if one was granted, would be retroactive to July 1. MAG Rec. #14, page 5-8 of MAG Phase 2 report Sufficient time for review by the Human Resources Director shall be considered when determining a timely manner. For example, submission of the evaluation on June 30 may not provide ample time for the Director to review and return to the evaluator. This may cause harm to the evaluated employee. A minimum of five days should be allowed for review by the Human Resources Director. MAG Rec. #2, page 2-5 of MAG Phase 2 report Before conducting a performance evaluation, a supervisor must give an employee a reasonable time to demonstrate performance. THROUGHOUT THE YEAR Observe and document the employee’s performance and give immediate feedback whenever possible. Documentation at this point can be somewhat informal, but try to keep a record of what the employee does, both good and bad. This record will be very helpful in completing the remarks/example section of the evaluation as well as ensuring the employee is not being evaluated on a short timeframe. Ask the employee for input about their performance during the year. This is important because the performance review should be based on two-way communication, so that it is not merely a “report card.” The employee’s input can be any combination of the following: • A draft performance appraisal prepared by the employee • A list of accomplishments and significant events • An informal discussion between the employee and supervisor It is important to keep in mind that the supervisor should collaborate and seek advice from others in evaluating the employee throughout the year. Other supervisors, employees, customers, division and department heads may be able to provide important insights. April 2009 -1-

Exhibit 4 Management Advisory Group (MAG) Phase 2 Revisions to PFP Instructions April 13, 2009 QUARTERLY REVIEW (generally October, December and March) Meet informally formally MAG Rec. #3 & #17, page 2-5 and 6-2 of MAG Phase 2 report with the employee to discuss progress toward the goals and objectives as outlined in Part 3 of the Pay- for-Performance Evaluation for the previous year. Update, add or remove goals as necessary since the last review in the PFP software. MAG Rec. #3 & #17, page 2-5 and 6-2 of MAG Phase 2 report and Employee Rec. #3 Unexpected and unplanned assignments may arise. As new goals are added, it is important to evaluate the employee’s capacity to accomplish already established goals. By keeping goals and objectives current, the necessity of documenting unplanned assignments in “Part 1” during the Annual Review will be minimized. Indicate any additional comments by the supervisor or employee in the supervisor’s log/journal. PROBATIONARY REVIEW All new employees shall receive a formal probationary review for no less than six months of active service and no more than seven months of active service. It is understood that the probationary period is a learning period. Goals are not required during the probationary period however if appropriate, goals could be assigned. Employee Rec. #8 (Exhibit 2) Goals are to be established for the new employee to complete during the probationary period. See next section, Annual Review, for additional information. ANNUAL REVIEW Annual reviews are required for all employees. MAG Rec. #16, page 6-1 of MAG Phase 2 report Employees hired between July 1 and November 30 of each year shall receive a probationary review for no less than six months of active service and no more than seven months of active service in addition to an annual review in May. On July 1, the employee would be eligible for a pay-for-performance increase. Employees hired between December 1 and June 30 shall not receive an annual review in May; however, they would receive a probationary review upon completion of six months of active service and no more than seven months of active service. Employees would be eligible for a pay-for-performance increase at their one-year employment anniversary. These employees would then receive an annual review in May of the following year and be eligible for a pay-for- performance increase on July 1 of the following year. The pay-for-performance evaluation instructions are available on Public Docs in the Pay for Performance folder while the evaluation is available on the City’s intranet, http://intranet/projects/pfpfb/. http://intranet/new. For assistance, please contact the Human Resources Department. It is important to inform the employee that his or her yearly evaluation is due. The supervisor shall set a meeting date and time with the employee to review the evaluation. This will ensure that everyone has ample time to prepare for the evaluation. April 2009 -2-

Exhibit 4 Management Advisory Group (MAG) Phase 2 Revisions to PFP Instructions April 13, 2009 It is important to keep in mind that the supervisor should collaborate and seek advice from others in developing the evaluation. Other supervisors, employees, customers, division and department heads may be able to provide important insights into the evaluation process. SELF EVALUATION A self-evaluation is not required by the employee unless requested by the supervisor. A self- evaluation is strongly encouraged since it is provides an opportunity for an the employee to inform the evaluating supervisor of surrounding circumstances or extraordinary efforts that were involved in the completion of the goals. MAG Rec. #4, page 2-5 of MAG Phase 2 report Evaluators will be specifically seeking the employee’s synopsis of the results achieved on his or her planned and unplanned goals. The employee shall be given a copy of a blank evaluation in July by his or her evaluator so that he or she may prepare a self-evaluation prior to the formal discussion of the evaluation. maintain the evaluation for quarterly and yearly reviews. MAG Rec. #4, page 2-5 of MAG Phase 2 report The employee may also wish to indicate goals they would like to achieve in the next review period. Goals should be related to the overall vision and mission of the City as well as the employee’s department. Professional development opportunities are not considered goals and should not be noted in the goal section of the evaluation. For example, complete an Excel class. JOB DESCRIPTION Obtain the current job description for the employee’s position to be reviewed by the employee and supervisor during the annual budget process. In general this review will occur in December or January each year. The job description shall be reviewed by the employee and the supervisor individually. Reviewing the job description annually will ensure that the job description remains up to date with current job duties. All changes must be submitted to the Human Resources Director for consideration and final approval. If appropriate, the HR Director may recommend the position be re-graded. COMPLETING THE PAY FOR PERFORMANCE EVALUATION FORM Page One The intranet system will automatically complete Page 1 of the evaluation. Please realize that each non-bargaining position has been assigned a weight for goals and objectives and one for core competencies. If you think that the weights need to be changed, please contact the Human Resources Director. If you need assistance, please contact the Human Resources Department. PART 1: Planned Goal and Unplanned Assignment Results This section is to include comments on the degree and qualities of the results achieved and note any extenuating circumstances affecting the results. It should also be noted how well an April 2009 -3-

Exhibit 4 Management Advisory Group (MAG) Phase 2 Revisions to PFP Instructions April 13, 2009 employee did in accomplishing the objectives and if they were completed in a timely manner. A status report on each goal and unplanned assignment is required. Assign performance points based upon the Performance Rating Definitions and the Key as noted in the Performance Rating tab of the Pay for Performance intranet system. The performance score shall be indicated in the Performance Rating box. Narrative information is very important in the review process and is required in Part 1 of the evaluation; therefore, include remarks and whenever possible, specific examples. It is very important to consider the difficulty of the goals and objectives when scoring. Goals and objectives can have different degrees of difficulty. The completion of a relatively easy goal and objective should not be scored the same as completing a difficult goal and objective. An easily attainable goal that is completed should be rated “good meets expectations,” MAG Rec. #5, page 2-6 of MAG Phase 2 report a more difficult goal should be rated “commendable,” and achieving a very difficult goal should be “outstanding results rarely achieved by others.” MAG Rec. #7, page 2-7 of MAG Phase 2 report A very difficult goal or objective that may be only partially completed may score the same as an easily attainable goal that is completed. It is very important that the difficulty of the goal and objective not be gauged on the employee’s ability, but on its relative difficulty when compared to goals and objectives assigned to others. After completing the Planned Goals and Objectives section, proceed to the Major Unplanned Assignments contained in Part 1. This section should be completed in the same manner as Planned Goals and Objectives. Major unplanned assignments are assignments which either were not included on the previous year’s evaluation or were added during the quarterly review and were not scheduled for completion throughout the fiscal year and required at least 40 hours to complete. The performance score is determined by dividing the sum of the points by the number of Planned Goals and Unplanned Assignments. The result is then rounded to the nearest tenth. This figure will be automatically calculated once the evaluation is saved. Please refer to page one of the evaluation. PART 2: Core Competency Elements Each employee shall be evaluated on all the core competencies indicated in Part 2 with the exception of categories that pertain to employees who supervise. This category is indicated. The supervisor should review the Performance Rating Definitions on page 2 of the evaluation or contained in the Performance Rating tab of the Pay for Performance intranet system prior to completing this section. Specific examples are to be provided in addition to remarks in the space provided. It is required to provide documentation for a performance score of 1 and 2 as well as a performance score of 5. A performance rating of three does not require an explanation. Employee Rec. #5 (Exhibit 2) Specific examples and documentation is recommended for a performance score of 4. Employees need to be aware how they are deficient as well as how they performance is at or above the desired level. The examples provided for each competency on April 2009 -4-

Exhibit 4 Management Advisory Group (MAG) Phase 2 Revisions to PFP Instructions April 13, 2009 the evaluation form should be used as guidelines in developing the narrative in the remarks/example section rather than merely copied. Upon the completion of evaluating all core competencies, save the evaluation. By saving the evaluation the score will automatically be calculated. Once the weighted scores for planned goal and unplanned assignment results and core competencies have been calculated the employee’s overall score will automatically be calculated by the intranet system. This is calculated by adding the two weighted scores together. Overall Comments A detailed narrative is be included in the Overall Comments section (located at the end of Part 2, Core Competencies) of the evaluation. This section should be used for the supervisor to express any comments or concerns that were not addressed previously in the evaluation. PART 3: Major Responsibilities for Next Year List goals and objectives for the coming year that are to be evaluated during the next evaluation. Evaluators are to be mindful of the number of goals that are assigned to employees. Employee Rec. #2 (Exhibit 2) Each year Department Heads are to receive their goals by March 31. Employee Rec. #1 (Exhibit 2)This will assist the departments in preparing goals for their employees. It is encouraged that employee be involved in the development of the departments fiscal year strategic goals. Employee Rec. #2 (Exhibit 2) All goals are to be written in the S.M.A.R.T. (Specific, Measurable, Attainable, Realistically high, and Target date) format. These goals are to be discussed with the employee during the formal evaluation process and reviewed quarterly to determine the employee’s progress toward reaching them. For information regarding S.M.A.R.T., please contact the Human Resources Department. PART 4: Employee’s Professional Development Plan Establish a Development Plan listing actions that the employee can take to improve performance for the coming year. This may include suggestions for education and training, reading material, research, job shadowing, counseling and other self-improvement programs. The Development Plan should include specific actions that the employee can take to enhance performance. This section of the evaluation affords the evaluator and the employee an opportunity to collaborate on how the employee’s performance can be improved both as an individual and as a part of a team. This section should be taken very seriously and should be considered one of the most important parts of the evaluation. Submission for Additional Approval Human Resources Quality Control Review Upon completing the evaluation, please electronically “Forward” the evaluation. This function is within the Pay for Performance intranet system. This function indicates to the next approving supervisor/department head that the evaluation has been completed and is ready for their review. The intranet system allows the evaluation to be forwarded as well as “Returned”. The proper April 2009 -5-

Exhibit 4 Management Advisory Group (MAG) Phase 2 Revisions to PFP Instructions April 13, 2009 chain of command must be followed in order for the evaluation to reach the Human Resources Director for final approval review. Throughout the approval review process, a supervisor may return the evaluation to the previous level. This process should be continued until the final approval review is received from completed by the Human Resources Director. The evaluation is not to be presented to the employee until it has been approved reviewed by the Human Resources Director. If the evaluation is presented to the employee before the Human Resources Director approves reviews it, the evaluator may be subject to presenting the evaluation again to the employee. Review with the Employee Once final approval review is received from completed by the Human Resources Director, the supervisor shall meet with the employee at the time and date originally scheduled at the beginning of the evaluation process. The supervisor may shall provide a copy of the completed evaluation up to at a minimum of two days prior to the meeting to the employee. This will allow for the employee an opportunity to preview review the evaluation prior to the meeting. At this the same time, the employee may shall give the supervisor a preview copy of the his or her self-evaluation. Included in the self-evaluation should be at a minimum two SMART goals that the employee developed. The department head/supervisor can consider the goals for inclusion in the evaluation. Employee Rec. #2 (Exhibit 2)During the review, the individual’s performance, strengths, and developmental needs are to be discussed. Explain the reasons for the review. For example, probationary, annual, special or for another reason. During the review, an open line of communication should be maintained. This is when the employee’s and the supervisor will compare the employee’s self-evaluation should be compared with the supervisor’s evaluation. The supervisor as well as the employee being evaluated should be open- minded toward comments made. After the formal review with the employee, the supervisor may need to modify the original evaluation to include information the employee presented during the review process. Signatures The employee and the supervisor must sign the evaluation once it has been reviewed together. The employee’s signature does not necessarily indicate agreement with the evaluation. If the employee refuses to sign a performance evaluation, the supervisor must make a notation on the evaluation to indicate that the employee refused to sign the evaluation. The employee and supervisor may attach an addendum. The evaluation shall be presented to the Department Head for review and signature. The Department Head shall then forward the evaluation to the Human Resources Director. Once the evaluation has been finalized, make a copy of the evaluation for the employee. Once the evaluation is submitted to Human Resources, the Human Resources Director will sign the evaluation. Human Resources will then forward to the department a copy of the signature page. April 2009 -6-

Exhibit 4 Management Advisory Group (MAG) Phase 2 Revisions to PFP Instructions April 13, 2009 The employee shall be informed that the evaluation will be placed in the employee’s personnel file maintained in the Human Resources Department. Evaluations become a permanent record in the employee’s file. April 2009 -7-

Exhibit 5 Management Advisory Group (MAG) Phase 2 PFP Policy April 13, 2009 City of Dover Performance Based Pay Policy For Non-Bargaining Employees April 19, 2005 April 13, 2009 I. Purpose The City of Dover Performance Based Pay Policy is intended to provide equitable compensation based on performance for all exempt and non-exempt positions when considered in relation to each other and to general pay ranges for similar employment elsewhere. This policy rewards excellence in core competencies, as well as the ability to get results. This will allow the City to maintain an effective, responsible and loyal work force, and allow us to recruit and retain high quality employees. The Policy establishes pay ranges and maintains an effective ongoing pay system for appropriate compensation recognizing the importance of results-based performance. II. Pay Plan Maintenance New market-based salary ranges shall be adopted every year after consideration of a market survey that considers both external and internal movement in market salaries. The ranges shall establish an entry-level rate, market rate a mid-point MAG Rec. #11, page 5-4 of MAG Phase 2 report and a maximum rate. The purpose of the market survey is to ensure our salaries are moving appropriately based upon the market. The key is to remain consistent in the yearly evaluation. Sources will include, however not limited to the following: • Employment Cost Index (ECI) • Local government organization: o Kent County o State of Delaware o City of Newark o City of Salisbury, Maryland o Any other government organizations that is deemed comparable • The Bureau of National Affairs, (BNA) will to utilized to research percentage of increased awarded to bargaining units in the state and local government section. • Salary increases awarded to City of Dover bargaining units Every five years the City will retain the services of a professional labor market researcher to determine if the City’s ranges are being adjusted accordingly. The City Manager will forward the results of the market survey and his recommendations to Council for consideration during the annual budget April 2009 -1-

Exhibit 5 Management Advisory Group (MAG) Phase 2 PFP Policy April 13, 2009 process. The increases in salary ranges shall not be considered as cost of living increases, but shall serve to keep ranges up to date so that employees’ performance is properly evaluated within the context of where their salary lies within the market place. III. Performance Evaluations and Advancement Guidelines Performance evaluations must be completed annually, prior to any consideration for an increase in pay. No supervisor shall receive an increase in pay until subordinate evaluations are complete. The evaluation will include measurement of the results of predetermined goals and objectives, unplanned assignment results and core competencies. The evaluations shall give goals and objectives for the coming evaluation year. The amount of the proposed pay increase will be determined by the overall Performance Score as applied to the Pay-for-Performance Worksheet in accordance with the table found on the worksheet. The Pay-for-Performance Worksheet shall be approved by City Council with the annual budget. Appendix A is the model Pay-for-Performance Worksheet; the areas where percentage increases will be placed have been left blank. Each year, salary increases will be determined by a percentage of the mid- point of each salary range. Once the percentage of mid-point is determined, percentage decreases or increases will be awarded based upon the employee’s individual score. MAG Rec. #11, page 5-4 of MAG Phase 2 report Any salary increase granted to an employee whose salary is above the maximum of the labor range shall receive a one-time lump sum payment that does not roll into the employee’s base salary. MAG Rec. #21, page 6-5 of MAG Phase 2 report The city reserves the right not to award any pay increase for employee’s whose salary is over the maximum of the range. In general, the percentage increase for employees scoring between 21 and 30 evaluation points whose current salary is within the market range (within the 2nd third of their salary range) will receive an increase equivalent to market increases as determined by the annual market survey. In general, employees with lower scores will receive lower percentage increases, and those with higher scores will receive higher percentage increases. To advance employees to the market rate, employees who are compensated at levels below market will receive increases that are higher than those who are at and above the market with similar performance scores. In some cases with low scores or salaries above maximum, there may be no increases. While it is the intent of the City to keep salaries competitive within the market place, the City Council reserves the right to set percentage increases based on what it determines the City can afford regardless of changes in the market. April 2009 -2-

Exhibit 5 Management Advisory Group (MAG) Phase 2 PFP Policy April 13, 2009 IV. Evaluation Quality Control Systems To ensure quality control, the Human Resources Department will review the latest employee performance evaluations in August of each year prior to presentation to the employee to ensure that they have clear and concise goals and objectives with expected results that are aligned with the City’s Strategic Organizational Plan. Goals are to be S.M.A.R.T. (Specific, Measurable, Attainable, Realistically High, Target Date). In addition, to review if ample or insufficient goals have been assigned to the employee. Employee Rec. #2 (Exhibit 2) The comments supporting the results achieved must be specific to the goals and/or competencies and not just a repetition of the goal or objective. Achievement or lack thereof of results and progression in core competencies are to be outlined in these comments. The Human Resources Department will also review the evaluators for unusual patterns such as consistently high/low patterns of scoring, as well as incomplete or unrelated comments to support the performance points associated with the goals and objectives. While there are no formal quotas, there is an expectation that scoring will naturally fall into a normalized pattern, particularly as evaluations are considered over time and in groups. Feedback will be given to evaluators and their department heads to give them the opportunity to justify the perceived inequities or patterns and if necessary correct the problem(s). V. Procedures for New Job Titles/Grades and Re-grading and Retitling Existing Positions To establish new job titles, grade new positions, or re-grade and re-title existing positions where job responsibilities have changed, the following procedure must be followed (Please note that the procedure could be modified by the City Manager during the budget process.): 1. Department heads must submit a proposed job description along with a completed Position Analysis Factor (PAF) Guide to the Human Resources Department with an explanation outlining the reasons for the new title, re- grade or new position. The Human Resources Department will enter the Position Analysis into the Job Analysis Qualification (JAQ) software to determine the salary grade. The Human Resources Director shall compile all of the new positions, new titles and new grades and forward them to the City Manager for consideration within the annual budget. 2. To ensure that existing job titles and grades are kept current, as part of the budget process each Department Head/supervisor will give the employee a copy of their current job description and ask the employees to review the description for accuracy. The employees will return the job descriptions April 2009 -3-

Exhibit 5 Management Advisory Group (MAG) Phase 2 PFP Policy April 13, 2009 within one (1) week of receiving them from the Department Head/supervisor and discuss the changes (if any) with the Department Head/supervisor. The Human Resources Department will review the submitted information within one (1) week from receiving it from the Department Head for appropriateness and use the Position Analysis Factor Guide to reevaluate the position. When reclassification is initiated, all incumbents holding the same job title should complete a JAQ. A desk audit usually at the job site would then be conducted with the individual being considered for reclassification or with a representative number of people if the reclassification request affects a number of people with the same title. Key questions concerning the job should be answered to assist in determining the proper level within the overall pay and classification system. The analysis of all the information is then compared to the current position description for the various classifications’ levels and weighted, using the same quantitative point-factor rating criteria used to establish the level of all positions in the City pay plan. The Human Resources Department will notify the Department Head and City Manager of the outcome of the review and recommendations. The employee shall be informed of the outcome by the Department Head. Proposed reclassifications will be included in the budget proposal of the City Manager. 3. Hiring, promoting and re-grading an employee to a new or open position will be done in accordance with established procedures outlined in the Employee Handbook. 4. Establishing the hiring salary or salary increase associated with a promotion or re-grading will be derived as follows: a. Employees will be placed within the approved salary range at the entry level. On occasion for highly skilled, technical, or managerial positions, it would be necessary to hire above the minimum rate in the range, but not above the market rate mid-point. In these cases, consideration will be given to the applicant/employee’s education, equivalent experience, related experience and past performance. Recognizing that the current salary ranges are based on a 20-year period between the entry salary and maximum salary the individual may be placed within the salary range using the following guidelines: (1) The employee will be given credit for equivalent experience year for year; (2) Credit for related experience will be ½ year for year; (3) Year for year equivalent experience credit will be given for college experience beyond the minimum required where a related Master’s or related Bachelor’s Degree has been obtained. A recommendation to hire above the minimum rate in the range should be documented by the supervisor, reviewed and endorsed by the Human Resources Director and approved by the City Manager. April 2009 -4-

Exhibit 5 Management Advisory Group (MAG) Phase 2 PFP Policy April 13, 2009 VI. Personnel Performance Evaluation Appeal Process MAG Rec. #20, page 6-4 of MAG Phase 2 report Employees dissatisfied with performance evaluations are entitled to dispute the evaluation through the following appeal process. 1. Employees may request an appeal of the evaluation within seven (7) days of receiving the evaluation. 2. The appeal must be filed with the employee’s immediate supervisor, in writing, stating the reason(s) for the dispute. The contents of the appeal request must include the specific categories being appealed, the rating sought, and the justification for the change. The immediate supervisor’s decision will be rendered to the employee, in writing, within seven (7) days. 3. If an employee is dissatisfied with the immediate supervisor’s decision, then the appeal will be forwarded within seven (7) days to the next level of supervision for that division along with a copy to the Human Resources Director. 4. If the employee is still dissatisfied with the decision, the process will continue through each level of supervision up to the City Manager or the Mayor and Council depending on the reporting relationship. City Manager and Council Appointee Department Heads shall have final decision on employees within their departments. Mayor and Council shall hear any appeals by the City Manager or Council Appointed Department Heads. Any appeal going as far as the City Manager, Council Appointed Department Heads, or Mayor and Council will be first submitted to the Human Resources Director. VIII. Instructions for Using the Pay-for-Performance Evaluation Detailed instructions are located on Public Docs in the Pay-for-Performance folder. IX. Evaluator Training All evaluators will receive detailed training in setting S.M.A.R.T. goals and objectives, preparing for and giving Pay-for-Performance evaluations, using the Pay-for-Performance Worksheet and completing the Position Analysis Factor Guide prior to implementation of this new system. Ongoing and refresher training will take place as needed but not less than two (2) times each fiscal year, however never less then once. Failure to attend the training will result in no salary increase awarded. Training will be mandatory, unless excused by the City Manager. MAG Rec. #1, page 2-4 of MAG Phase 2 report and Training will include the following subjects: introduction of policy, purpose, guidelines, components of policy, evaluation, appeal process, S.M.A.R.T. goals and April 2009 -5-

Exhibit 5 Management Advisory Group (MAG) Phase 2 PFP Policy April 13, 2009 objectives, JAQ scoring system and plan administration. Each topic is to be addressed as it relates to the employee as an evaluator. X. Employee Training Employee Rec. #7 (Exhibit 2) All employees will be extended an invitation to attend annual training of the Pay for Performance system. Subjects to be discussed are as followings: introduction of policy, purpose, guidelines, components of policy, evaluation, appeal process, S.M.A.R.T. goals and objectives, JAQ scoring system and plan administration. Each topic is to be addressed as it relates to the employee. XI. Weights for Each Position Each non-bargaining position was evaluated and weights were assigned that determined the degree of responsibility and control it contained versus recurring or scheduled tasks as identified in the position description. For example, if a position was determined to have fairly low responsibilities and required the same duties on a recurring basis, the core competencies weight will be greater than the planned goals and unplanned assignment results weight. Conversely, a department director’s position would receive the highest weight for planned goals and unplanned assignment results and the lowest weight for core competencies since the position has a much higher level of autonomy and responsibilities. April 2009 -6-

Exhibit 5 Management Advisory Group (MAG) Phase 2 PFP Policy April 13, 2009 Appendix A P.F.P. Salary Calculation Worksheet (Adopted by City Council ________________) Instructions: Percentage of increase is determined based on the midpoint of the labor grade for the position in which the employee occupies. Fluctuation from the mid-point is based upon the employee’s overall Pay for Performance score. Any salary increase granted to an employee whose salary is above the maximum of the labor range shall receive a one-time lump sum payment that does not roll into the employee’s base salary. MAG Rec. #21, page 6-5 of MAG Phase 2 report The city reserves the right not to award any pay increase for employee’s whose salary is over the maximum of the range. OVERALL SCORE MAG Rec. #11 and 12, page 5-4 and 5-6 of MAG Phase 2 report FROM TO ADJUSTMENT For example: 10 19 0% 20 29 2% of mid-point 30 35 3% of mid-point (Market research recommended movement) 36 41 4% of mid-point 42 50 5% of mid-point April 2009 -7-

REVIEW AND EVALUATION OF THE PFP EVALUATION SYSTEM FOR THE CITY OF DOVER FEBRUARY 13, 2009 PART TWO OF TWO: PAY FOR PERFORMANCE EVALUATION SYSTEM MANAGEMENT ADVISORY GROUP, INC. Virginia/DC Area Headquarters Tallahassee Regional Office 4205Dale Boulevard Tallahassee, Florida 32303 Woodbridge, Virginia 22193 Phone: 850.386.2711 Phone: 703.590.7250 Fax: 850.386.7180 Fax: 703.590.0366 www.maginc.info

MANAGEMENT ADVISORY GROUP, INC. HUMAN RESOURCES CONSULTING SERVICES February 13, 2009 Members of City Council c/o City Manager Tony DePrima City of Dover 710 William Street Dover, DE 19904 Dear Council, Management Advisory Group, Inc. (MAG) is pleased to present this Phase II report for the Review and Evaluation of the PFP Evaluation System to the City of Dover (City), in reference to the City’s RFP # R8006-JW-09/21/2007. This initial report is labeled as Part Two of Two for the project. It focuses on the elements that were agreed to in revisions to the original work plan, including the review of the performance evaluation aspect of the project. Part One focused on the classification and compensation elements. This report reflects input from the City Council, department heads, and employees during a series of meetings conducted on-site. Please feel free to contact me if you have any questions, or require clarification on any aspect of this report (703) 590-7250 and by facsimile at (703) 590-0366. We appreciate the opportunity to be of service to the City. Sincerely, Donald C. Long, Ph.D. Executive Vice President Management Advisory Group, Inc. 4207 Dale Boulevard Woodbridge, Virginia 22193 Phone: 703.590.7250 The City of Dover Page 1 of 1

THE CITY OF DOVER REVIEW AND EVALUATION OF THE PFP EVALUATION SYSTEM PHASE II TABLE OF CONTENTS Transmittal Letter Table of Contents Section 1.0 – Goals and Objectives of the Review ............................................. Page 1-1 Section 2.0 – Current Pay for Performance (PFP) System ................................. Page 2-1 Section 3.0 – Summary of Employee Views on the PFP System........................ Page 3-1 Section 4.0 – City Council Evaluations ............................................................... Page 4-1 Section 5.0 – PFP Scoring and Calculations ...................................................... Page 5-1 Section 6.0 – Recommendations on Related PFP Issues................................... Page 6-1 Section 7.0 – Implementation Table of Recommendations................................. Page 7-1 Appendix 1 – PFP Description, Instructions, and Forms.................................. Appendix 1 Appendix 2 – Employee Views on PFP Questions .......................................... Appendix 2 Appendix 3 – Council Appointed Positions Form ............................................. Appendix 3 Appendix 4 – PFP Calculation Worksheets ..................................................... Appendix 4 Management Advisory Group, Inc. 2009

SECTION 1.0 GOALS AND OBJECTIVES This section identifies the goals and objectives for the review of the Pay for Performance System. Management Advisory Group, Inc. 2009

City of Dover PFP Report 1.0 Goals and Objectives Project Understanding The City of Dover (City) has sought a review of its total compensation as it relates to the City’s Pay for Performance Evaluation System. The proposed services have been conducted during two major time frames, including prior to October 2008 and after October 2008. The Phase I report was provided to the City Council September 29, 2008. This enclosed report focuses on Phase II issues related to performance evaluation. Work Plan: Phase II In this report, the following questions are relevant and reviewed:
Are performance evaluations and advancement goals being met?
Are the “Quality Control” systems working?
Are “below market” employees advancing to “at market” at the expected rate?
Has the system reduced or eliminated the number of employees above the maximum and prevented employees from advancing above the maximum?
Is the appeal process working?
Have there been a high number of appeals?
Do appellants feel that they have been treated fairly?
Are we properly training evaluators?
Are we following the training guidelines?
Do evaluators feel as though they are being properly trained?
Is the system working to retain quality employees or are we losing them to competitors?
Are the new recruits staying with the city?
Are we getting results based performance due to rewarding better performance? Are employees more goal oriented under this system of evaluation? Are employees more motivated to perform better under this system? Management Advisory Group, Inc. 2009 1-1

SECTION 2.0 CURRENT PFP SYSTEM This section describes the major elements of the current Pay for Performance System, and includes some key recommendations. Management Advisory Group, Inc. 2009

City of Dover PFP Report 2.0 Current Pay for Performance System Review of Major Elements of the Pay for Performance (PFP) System The City has established four (4) major elements that constitute the current Pay for Performance System. They include: ¾ Performance Based Pay Policy for Non-Bargaining Employees (April 2005); ¾ Instructions for the Performance Review Cycle (supporting documentation); ¾ Pay for Performance Evaluation Form for Non-Council Appointed Positions; ¾ Pay for Performance Evaluation Form for Council Appointed Positions. The actual descriptions of these elements for the Pay for Performance System are included in Appendix I. The form for Council appointed positions is included for reference in Appendix II. The system devised and used by the City is quite comprehensive, documented, and detailed. It is a more detailed and involved system than most municipal employers utilize. In the public sector, there is a broad mix of systems and programs used. Agencies often go through cycles of use and non-use of performance evaluation. The application and implementation of a performance evaluation system is a function of the management and leadership of the governmental organization. If the practice is embraced by the leadership, it is put in place. If it is not viewed as a viable mechanism for evaluating, documenting, and determining compensation adjustments, the default is that all employees receive the same level of adjustments. Performance evaluation is a complex undertaking, which is why some agencies take the easy road and do not bother with implementing a performance evaluation program. The City of Dover has chosen to meet the challenge directly, by not only implementing a comprehensive and well documented system, but also seeking an evaluation of its relevance, appropriateness, and implementation. Management Advisory Group, Inc. 2009 2-1

City of Dover PFP Report Performance Based Pay Policy for Non-Bargaining Employees (April 2005) The Performance Based Pay Policy document provides the background, guidelines, definitions, procedures, and appeal process for the Pay for Performance System. It indicates that the purpose of the program is to provide equitable compensation based on performance for all non-bargaining positions when considered in relation to each other. The goal is to reward excellence in core competencies and to obtain positive results. This general purpose applies to the entire compensation system. Part III of the City’s policy document focuses on Performance Evaluation and Advancement. The tone of the evaluation program is established when it states that performance evaluations must be completed (annually) before any consideration can be given to an increase in compensation. Further, no supervisor may receive an adjustment until subordinate evaluations are completed. This is a critical rule that appears to have been upheld to ensure the integrity of the system. The potential increases that are available to employees are a function of their score and their current compensation relative to the market rate or market point. The calculation is based on a percentage presented in the budget. This percentage is then multiplied by the incumbent’s base salary. If an employee is below the market rate for his or her pay grade, the adjustment would typically be larger than an employee whose current compensation is above the market rate. This approach is based on the theory that the market rate is provided to a fully competent incumbent. The rate of compensation growth is accelerated in the early stages of incumbency to move to the market rate faster. The compensation growth is slowed down after the employee has entered the market range of pay, and is further slowed when the salary is above market. The potential adjustments under this approach are established in a Salary Calculation Management Advisory Group, Inc. 2009 2-2

City of Dover PFP Report Worksheet which are the result of the actual scoring and where the employee’s salary is in relation to the market point. The Salary Calculation Worksheet does not appear to be fully understood at all levels of the organization and is not fully embraced at all levels. It is somewhat complex, has changed from year to year, and based on budgetary decisions may not be fully integrated with the City’s stated policy of a normal progression framework to the market point of the range. Its basis (use of market rate in combination with score) is not unique, but can be achieved through a simpler technique recommended in Section 5.0 of this report. Part IV of the City’s Performance Based Policy outlines a quality control mechanism that includes a review by the Human Resources Department to ensure that the goals and objectives of individual evaluation plans are consistent with the City’s Strategic Organizational Plan, and that SMART goals are established. Human Resources is also charged with reviewing the evaluators for unusual patterns of scoring, or incomplete or unrelated comments. The policy indicates an expectation that scoring will fall into a somewhat “normalized” pattern. While normalized is not defined in the City’s policy, this typically means a bell curve pattern, in which most scores will be in the mid range, while some people will score low and some will score at the higher levels. The Human Resources Department is to provide feedback to evaluators and department heads to justify inequities or patterns, and if necessary, correct the problem. Some discussion of this “quality control” approach will be made in Section 5.0 of this report, and recommendations made to ensure an appropriate organization wide quality control mechanism is in place. Part VI of the City’s Performance Based Pay Policy describes the appeal process. The appeal of an evaluation is directed up the chain of command, which is a standard Management Advisory Group, Inc. 2009 2-3

City of Dover PFP Report approach for an appeal. There appear to be very few appeals made, which is discussed more fully in Section 6.0. Part IX of the City’s Performance Based Pay Policy describes the requirement for training of evaluators in all aspects of the program. This is required two (2) times per year. In practice, in recent years, this type of training has been provided once each year, so the practice does not match the policy in this instance. Training on the elements of the system once per year is standard and sufficient for most agencies. It is noted that not all evaluators are actually attending the “required” training. The policy should also be adjusted to put “teeth” in the training program. If evaluators do not attend the required training, they would not be able to receive any adjustment to their own salary level for which they may be eligible. Council Members also have responsibility for evaluating five (5) positions that are “direct reports” to the Council. As a matter of fairness to the evaluated employees, Council Members should also attend the annual training program. If a Council Member does not have time to attend the training, he/she should consider recusing him or her self from the evaluation process. Recommendation # 1: Change the policy on training in the PFP System to match the practice, by requiring training for supervisors once per year. If training is not attended, deny any salary increase for which the supervisor may be eligible. Instructions for the Performance Review Cycle (supporting documentation) The instructions for the performance review cycle are comprehensive. The impact of not getting evaluations done in a timely manner is clearly placed on the Department Head. If not done in a timely manner, their own potential increase will be delayed by the same number of days the evaluation is late. The instructions (second paragraph of the instructions) indicate that “sufficient time” must be given to enable the Human Resources Director to complete a review of the scoring, but that time is not fully defined. Management Advisory Group, Inc. 2009 2-4

City of Dover PFP Report Recommendation #2: Establish a more precise time frame and accountability within the set of Instructions so as to clearly define the time allotted for each step in the performance review cycle. Quarterly Reviews Language is included in the Instructions about documenting work behaviors throughout the year. This is an excellent policy and should be monitored. Requiring a “quarterly review” is also a fine policy, and requires substantial attention to ensure their completion on a regular and routine basis. The set of instructions strongly encourages that quarterly reviews be completed. Under the current City policy, quarterly reviews do not have to be submitted to HR for review. The advantage of conducting quarterly reviews is to keep employees abreast of their performance and focused on their goals. There is no record of the quarterly reviews being accomplished and, in practice, some departments do quarterly reviews and some don’t. Recommendation #3: Written quarterly reviews should be done by Department Heads on a schedule outlined in the City’s policy, and documented in the evaluation by entering into the PFP software. Self Evaluations A “self-evaluation” component is described in the Instructions, in which an employee is not required to complete one unless requested by the supervisor. The intent is to have a basis for the formal discussion of the evaluation at a later point. In practice, some department heads ask employees to complete self evaluations and some do not. This is an uneven practice within the departments. The policy should dictate one way or the other as to whether self-evaluations shall be done. While supervisors may focus on one set of behaviors, they may find that employees have identified achievements that have been overlooked. Recommendation #4: All evaluated employees should conduct self evaluations, with the purpose of then comparing them at the formal performance evaluation meeting. Management Advisory Group, Inc. 2009 2-5

City of Dover PFP Report Pay for Performance Evaluation Form for Non-Council Appointed Positions This evaluation form includes definitions of performance ratings, including Outstanding, Commendable, Good, Acceptable with Some Improvement Needed, and Unsatisfactory. For the most part, the definitions are appropriate and reflect standard definitions within a typical performance evaluation format. However, there is a disconnect in the labeling and definitions for the “Good” level and the “Acceptable with Some Improvement Needed” level. The definition for “Good” is more consistent with the label of “Meets Expectations” as defined in most systems. It is the third level down in the relative ranking of performance, and in a five (5) rank level system, is typically assigned the label of “Meets Expectations”. That is essentially what the definition in the form describes. The incumbent is to meet the expected standards of the job. The definition describes what the City should expect of an incumbent receiving compensation for work. Recommendation #5: Change the current performance form label of “Good” to “Meets Expectations” on the evaluation form. For the level that is labeled “Acceptable with Some Improvement Needed”, the label itself is deceiving. The definition describes performance that is clearly not acceptable within a work environment. Labeling the described performance as “Acceptable” creates an impression that “not consistently demonstrating the required knowledge, skills, abilities, and/or effort for the position” is indeed acceptable (when in fact, it is not, or should not be). Recommendation #6: Change the current performance form label of “Acceptable with Some Improvements Needed” to “Improvement Needed”. Management Advisory Group, Inc. 2009 2-6

City of Dover PFP Report MAG further offers an observation and recommendation in reference to the label assigned to level 5 of the evaluation system, that of “Outstanding”. The PFP policy itself has indicated that the evaluation system is a relative ranking system. In other words, how well (or not) employees are performing relative to others in the organization is a key component. Under the current labeling system, it is feasible that all employees could obtain “Outstanding” scores. In a relative ranking system, that scenario is not feasible. In order to match the reality of scoring with the defined policy and policy intent, an adjustment to the label for the highest score is needed to re-emphasize the relative ranking intent of the policy and the program. Recommendation #7: Change the current performance label of “Outstanding” to “Results Rarely Achieved by Others”. The evaluation form also includes both planned goals and unplanned assignments. This demonstrates the flexibility of the system as it recognizes that goals and objectives may change during the course of a performance cycle. The prioritization aspect of the format is commendable as well. A unique dimension to the establishment of goals and objectives is that of requiring goals to meet the SMART criteria (Specific, Measurable, Attainable, Realistically High, Target Date). The evaluator and the employee have some parameters guiding the development of goals and objectives. The inclusion of a professional development plan for the coming year is also a desirable component of a performance evaluation program. It demonstrates that the evaluation is not only looking backward on previous performance, but is also forward looking as well. Management Advisory Group, Inc. 2009 2-7

SECTION 3.0 EMPLOYEE VIEWS ON THE PFP SYSTEM This section summarizes the views expressed by supervisors and employees attending training sessions in October 2008 and December 2008. Management Advisory Group, Inc. 2009

City of Dover PFP Report 3.0 Summary of Employee Views on the PFP System Employee Meetings Conducted Meetings were held with groups of employees and supervisors in both October and December 2008. In the October meetings, attendees were asked to identify strengths, weaknesses, and possible solutions to the Pay for Performance System. The extensive comments are summarized here, with duplicative comments removed. Strengths of the PFP System Noted by Employees and Supervisors ¾ Online capability (use year after year, saves time, better than paper); ¾ The PFP system is standardized across departments; ¾ The system requires establishing goals; ¾ Separates achievers from underachievers – rewards achievers; ¾ There is potential for a larger increase; ¾ The system documents poor performers; ¾ Documents actions/goals and work behaviors; ¾ Keeps you focused and provides constant feedback; ¾ Defines expectations and keeps employees on track; ¾ There is an incentive to excel in performance; ¾ Employee morale is positively affected, generally; ¾ There is better retention of skilled staff; ¾ Goals are clear and they are good in theory/principle; ¾ There is opportunity for employee development; ¾ Goal setting – goals are flexible; ¾ Enhances communication between supervisor and employee; ¾ The use of self evaluation is good; ¾ Increases productivity; ¾ Grading based upon performance rather than random views; ¾ Dialogue between supervisor and manager; ¾ There is a continuity for goals if done properly; ¾ The system benefits “under market” employees; ¾ Credit can be given for unplanned assignments; ¾ The system allows you to set goals for next year. Management Advisory Group, Inc. 2009 3-1

City of Dover PFP Report Weaknesses of the PFP System Noted by Employees and Supervisors ¾ There is a lack of understanding of the PFP system by Council; ¾ Scores can be subjective; ¾ Goals and objectives can be redundant and don’t flow down in timely manner; ¾ A lot of approval levels can take months; ¾ No incentive once you get to “above market”; ¾ “Below market” concept can sometimes reward poor performers ¾ Supervisors not always qualified to evaluate the employee; ¾ Weak training on standards/standardizing on grading; ¾ The required paperwork can be cumbersome and process time consuming; ¾ The scoring system is sometimes seen as unfair and not understandable; ¾ Calculation manipulation and influence from outside of the department; ¾ Distrust of HR – denial of high scores, lack of communication; ¾ Matrix should be consistent each year – no changing at budget; ¾ Can be abandoned without notice – Council can eliminate after goals are met; ¾ Substantial sacrifice does NOT equal pay for performance; ¾ Union employees getting better raises & step increases than PFP; ¾ Matrix is misleading; ¾ Brings down morale and incentive is minimal; ¾ No credit is given for experience that one brings to the job; ¾ Weighted scoring; ¾ Unfair to long-time employees, less of an increase; ¾ Core Competency is too wordy/repetitive; ¾ Performance goals take precedence over core competencies; ¾ It takes too long to complete each evaluation; ¾ Evaluations are all due at the same time; ¾ There is a tendency to trend toward the middle; ¾ Union employees get better raises/step increases than supervisors; ¾ Budget drives the compensation – not enough difference in actual pay between an “average” and an “outstanding”; ¾ “Down-sizing” of actual performance ratings to meet budget constraints; ¾ Process takes too much time from evaluation to results; Management Advisory Group, Inc. 2009 3-2

City of Dover PFP Report Solutions for the PFP System Noted by Employees and Supervisors ¾ Goals should have more weight than objectives; ¾ Unplanned goals should have more weight than scheduled goals; ¾ Hold off goals during the probationary period; ¾ Final approval should be with Dept. Head – not HR; ¾ More support/understanding of the program by Council; ¾ Accountability, follow up on findings; ¾ Training should be a “on-going” process; ¾ Proper/consistent training for supervisors doing evaluations; ¾ Need less reliance on HR to monitor the system; ¾ Need more time to talk with supervisors about goals; ¾ Funding – have to fully fund the system; ¾ Stop hiring people at “below market”; ¾ Eliminate decreased “increases” for above market; ¾ Simplify evaluations; ¾ Council needs to identify goals earlier to incorporate in evaluations; ¾ Define Council appointee goals in March; ¾ Define department head goals in April; ¾ Develop weight system for goals; ¾ Delete below & above market; ¾ Better define priorities/weight goals; ¾ Don’t require explanations for 3’s + 4’s; ¾ Place more authority with Dept. Heads; ¾ Evaluate PFP software for user-friendliness; ¾ Simplify core competencies; ¾ Add flat cost-of-living increase and make PFP an additional %; ¾ Base evaluation dates on anniversary date; ¾ Supervisor raises should not be less then union (good evaluations); ¾ Allow more 5’s; ¾ Develop a plan to get people to market; ¾ Limit goals. While not all views are reflected in the series of recommendations, they have all been considered. For example, broad comments on the need for supervisory training on the PFP system are reflected in the recommendations, the role of HR has been further defined and clarified, and the system scoring is simplified. Some suggestions may be based on incomplete information or rumor (final scoring approval is with DH, not HR), or may not be feasible at this time (such as evaluations on anniversary dates, which is a major change). Employees may be assured that all suggestions were reviewed in the context of other needed system adjustments. Management Advisory Group, Inc. 2009 3-3

City of Dover PFP Report Employee Views Regarding Specific PFP Related Questions In addition to the strengths, weaknesses and possible solutions identified by employees in October 2008, a series of meetings was conducted in December 2008 to focus on specific questions. All of the responses are listed in Appendix 2. They are summarized here for the reader. 1. You have been a provided a copy of the PFP policy and instructions. Do you believe the evaluations are being completed in accordance with the Policy and Instructions? If not, what specific policies are not being met? Of the 74 responses to whether the evaluations are being completed in accordance with the Policy and Instructions, 57 people answered “Yes”, while six (6) people answered “No”. Of the remaining respondents, seven (7) people indicated that they had not been evaluated yet as newer employees, while four (4) responses were non-committal. 2. Does your supervisor collaborate with you on developing your goals for the coming year? Do those goals use the SMART criteria (Specific, Measurable, Attainable, Realistically High, Target Date)? Of the 80 responses to this question, 65 people answered “Yes”, while 12 people answered “No”. Three (3) responses were unclear or non-committal. Some of the “No” responses were due to the view that the goals are either very clear or pre-determined, so no collaboration was needed. 3. Do you feel that establishing goals is relevant to your job (if not, could you identify your job title)? Of the 78 responses to this question, 64 people answered “Yes”, while five (5) people answered “No”. Nine (9) of the responses were non-committal or unclear. 4. Is the “core competency” of the evaluation relevant to your job? Of the 78 responses to whether the core competencies are relevant to the employee’s job, 65 people answered “Yes”, while two (2) people answered “No”. Eleven respondents were unsure, non-committal, or indicated “somewhat”. 5. Do you feel your job is weighted appropriately between goals and competency? Of the 72 responses to this question, 41 answered “Yes”, while 19 people answered “No”. Twelve respondents were unclear or uncertain. Management Advisory Group, Inc. 2009 3-4

City of Dover PFP Report 6. Do you believe the scoring system is fair? Of the 76 responses to this question, 38 people answered “Yes”, while 22 people answered “No”. Sixteen (16) respondents were either unclear, non- committal, or had not been evaluated yet and had no comment. 7. Is high performance rewarded? Of the 71 responses to this question, only 13 people answered “Yes”, while 43 people answered “No”. Fifteen (15) people were not certain or were non- committal. 8. Are evaluations done consistently across departments? Of the 74 responses, 14 people answered “Yes”, while 14 people answered “No”. Most respondents (46) did not know or could not answer the question. 9. Supervisors: do you feel as though you have enough knowledge of how to use the performance evaluation system? Of the 53 responses to this question, 34 people answered “Yes”, while only three (3) people answered “No”. Sixteen (16) people answered n/a, and other non-supervisory people simply did not answer. 10. Does the system help retain high performing employees? Of the 73 responses to this question, 15 people answered “Yes”, while 39 people answered “No”. Nineteen (19) people answered unsure or don’t know. 11. Are employees generally more goal oriented under this system of evaluation? Why or why not? Of the 77 responses to this question, 44 people answered “Yes, while 17 people answered “No”. Sixteen (16) people were unsure or non committal. 12. Once the evaluation is complete, does the employee receive timely feedback on the results? Why or why not? Of the 70 responses to this question, 41 people answered “Yes”, while 15 people answered “No”. Fourteen (14) people were unsure or non committal. 13. Have you ever appealed an evaluation? If yes, did you feel it was handled adequately? Why or why not? (was it fair?) Of the 73 responses to this question, six (6) people indicated that they have appealed an evaluation, while 62 respondents indicated they had not ever made an appeal. Five (5) people indicated no response or unrelated information. Of the six (6) people who appealed, two (2) indicated a satisfactory response, while three (3) were not satisfied. One (1) appellant did not discuss the outcome. Management Advisory Group, Inc. 2009 3-5

City of Dover PFP Report 14. What single action would you recommend to improve the system? As one might imagine, with open ended responses from 75 employees, the answers are highly variable. The responses varied from “get rid of it” to “don’t change anything”. Some recommendations noted several times included: ¾ ensure Council commitment to the program (since it was suspended recently, this has been a matter of concern); ¾ make the evaluations more department specific; ¾ reduce the role of Human Resources to that of process monitoring rather than reviewing or changing scores (although no documented evidence was presented); ¾ shorten the format, particularly with the redundancies in the core competencies; ¾ require more meetings between supervisors and employees; ¾ make the matrix consistent and do not manipulate; ¾ let department heads decide increases; ¾ let supervisors decide increases; The more frequent employee recommendations focused on making the PFP simpler, limiting the role of HR, shortening the format, and ensuring Council commitment and acceptance. Management Advisory Group, Inc. 2009 3-6

SECTION 4.0 CITY COUNCIL EVALUATIONS This section focuses on the evaluation form and process used by City Council to evaluate five (5) Council appointed positions. Management Advisory Group, Inc. 2009

City of Dover PFP Report 4.0 City Council Evaluations Council Appointed Evaluations There are five (5) positions within the City that report directly to the City Council. These include the City Manager, City Clerk, Planning Director, Finance Director, and Tax Assessor. For these positions, the City Council as a whole is responsible for providing performance evaluations. Evaluation Process In terms of process, these incumbents conduct self evaluations (using the prescribed form in Appendix 2). Then, the evaluations are given to Council Members for review and consideration. The Council will meet as a group, without the employee present, to discuss the performance issues and concerns. Following this step, the employee meets with the full Council to discuss the performance evaluation document and views of Council Members. The City Clerk creates a score sheet upon which each Council Member’s scores are recorded for the goals and the core competencies. The City Clerk does the calculations, which includes dropping off the high score and the low score for each item evaluated. The Council Members review the form and scores and then the City Clerk enters the scores into the PFP electronic system. The evaluation is then printed out. The City Manager provides input into the evaluations for the Planner and the Tax Assessor positions. Format and Form In terms of the form used, it is essentially the same format as that which is used for non-Council appointed positions. The major difference is in the sub-elements of the core competencies. The items within the core competencies are specific to the higher level nature of the positions and their work relationship to Council. Management Advisory Group, Inc. 2009 4-1

City of Dover PFP Report Planned Goals and Unplanned Assignments This section of the forms for Council appointees appears to be well done and focused. The tight definition of the planned goals and/or unplanned assignments lends itself to a somewhat objective review and assessment. Core Competency Elements This section of the form is not well described and as a result is difficult, if not impossible to result in an objective evaluation of the incumbent. While MAG has selected (for the sake of brevity) to use a single review form as an example, (see Section 5.0) it should be noted that this area of the form was also voiced as a concern by other non- bargaining employees. The “elements” portion of the Core Competency section was described as “overlapping”, “redundant” and “overly complex”. These comments appear to be supported by MAG’s review of this area of the evaluation form (See Section 5.0) Performance Rating Definitions The performance rating definitions used for Council appointed positions is the same as that which is used for non-Council appointed positions. The evaluation in Section 2.0 includes a review of the definitions, and MAG has the same recommendation for the Council appointed positions. Observations There is an inherent challenge for Council Members to evaluate the work performance of the management employees reporting directly to the whole Council. A primary concern is that Council Members are not typically in daily contact with the reporting employee to the same extent as a supervisor is with an employee. The interactions and therefore the observations are infrequent and often occur during periods of stress (public meetings or other times when significant issues are at stake). To compound the challenge, some Council Members, due to their time commitments and also the committees in which they are most active, may or may not have sufficient Management Advisory Group, Inc. 2009 4-2

City of Dover PFP Report opportunity to observe and evaluate the work performance of the employee. As an added point, if Council Members are not able to attend the training provided annually on the PFP system, they may not be familiar with the forms and nuances of the system to enable full and appropriate consideration of all facets of the work being completed. It was noted in Section 2.0 that Council Members should attend the annual training to ensure their full understanding of this (complex) system of evaluation. While the process established for the evaluation of Council appointed positions has some good elements (requiring initial self evaluations, meeting first without the employee, using core competencies and a scoring system similar to other employees, dropping off the high and low scores), a slight adjustment in process may be helpful. Committee Structure for Council Direct Reports The City should consider establishing a three (3) or four (4) person committee structure for evaluations that would assign Council Members with the most familiarity with the work performance of the employee to that particular committee. For example, the Council Members who work most closely on financial affairs and budgetary matters would be assigned to a four (4) person committee to initially evaluate the performance of the Finance Director. The Council Members who work most closely on planning and community development issues and committees would take the lead on the evaluation of the Planning Director position. MAG further suggests that the Council President be assigned to each of these committees. As an example, for the Planning Director position, the committee might include the following committee chairs: ¾ Parks, Recreation, and Community Enhancement ¾ Safety Advisory and Transportation ¾ Planning Commission Chair ¾ Council President Management Advisory Group, Inc. 2009 4-3

City of Dover PFP Report For the Tax Assessor position, the committee might include the following committee chairs: ¾ Legislative, Finance, and Administration ¾ Chair of the Tax Appeal Board ¾ Council President For the Finance Director, the committee might include the following committee chairs: ¾ Legislative, Finance, and Administration ¾ Chair of the Pension Committee ¾ Utility Committee ¾ Council President For the City Clerk, the committee might include the following committee chairs: ¾ Legislative, Finance, and Administration ¾ Parks, Recreation, and Community Enhancement ¾ Utility Committee ¾ Council President For the City Manager, while it is ultimately the entire Council that is responsible for this evaluation, the full Council should rely upon the approach established in the contract for the City Manager. It indicates that the review would be completed by five (5) Council Members, including the Council President and the chairs of the standing committees. The five (5) person committee should therefore include: ¾ Legislative, Finance, and Administration ¾ Parks, Recreation, and Community Enhancement ¾ Safety Advisory and Transportation ¾ Utility Committee ¾ Council President This committee would conduct the initial meeting with the City Manager to review the self evaluation and provide a recommendation to the full Council. This action could make the full evaluation meeting with Council a more productive and focused meeting. Management Advisory Group, Inc. 2009 4-4

City of Dover PFP Report This process adjustment would allow Council Members to discuss performance in greater detail and have a more meaningful set of interactions with the employee. The outcome of the initial evaluation would then be presented to the whole Council as a recommendation, with the whole Council then confirming the recommendation or making any adjustments deemed appropriate. Recommendation #8: Create a committee structure to evaluate Council appointed positions that would make recommendations on compensation adjustments for the evaluated employee. Recommendation #9: Apply the changes noted in Section 5.0 to the development of Core Competencies for the Council positions. Management Advisory Group, Inc. 2009 4-5

SECTION 5.0 PFP SCORING AND CALCULATIONS This section reviews the current scoring system and the current method of calculating possible increases. Management Advisory Group, Inc. 2009

City of Dover PFP Report 5.0 PFP Scores, Calculations and Forms Policy for Performance Pay The following is excerpted from the “Performance Based Pay Policy for Non-Bargaining Employees”: I. Purpose “The City of Dover Performance Based Pay Policy is intended to provide equitable compensation based on performance for all exempt and non-exempt positions when considered in relation to each other and to general pay ranges for similar employment elsewhere. This policy rewards excellence in core competencies, as well as the ability to get results. “This will allow the City to maintain an effective, responsible and loyal work force, and allow us to recruit and retain high quality employees. The Policy establishes pay ranges and maintains an effective ongoing pay system for appropriate compensation recognizing the importance of results based performance.” The current Pay for Performance narrative recognizes that the pay structure is established on a twenty (20) year career plan base. Additionally, the movement for acceptable performance for employees who are “below market’ is based on reaching the market point in seven (7) years. The policy is to have an employee who starts at the entry level and who receives a “GOOD” evaluation to move to the market level within seven (7) years. Current Pay for Performance Scoring and Salary Adjustments The current pay plan structure is 57% from the entry level of the range to the top of the range, with approximately 21% between the entry level and the market point and 30% between the market point and the maximum of the range (percentages compound to yield a range width of 57%). Given this spread, a “Good” evaluation, or as MAG recommends, “Meets Expectations”, would be an annual adjustment of approximately Management Advisory Group, Inc. 2009 5-1

City of Dover PFP Report 3%. If the policy to move employees to the maximum of the range was recognized in the performance management plan, a “Good’ or “Meets Expectation” raise from the market to the maximum of the range would be an annual adjustment of approximately 2.3%. In contrast, the City’s calculation for “Good” for the 2008 – 2009 matrix (which is currently suspended) would be 4.25% (for below market) and 2.5% for above market. An employee whose salary is at market would receive 3.25%. The Row of “30-35” would represent “Good” or ‘Meets Expectations” and should equate to 7 years to market and 20 years to maximum (or an additional 13 years of service). MAG has reproduced the City’s 2008-2009 Performance Score Table and has also added a “years to…” calculation based on the current pay structure and the percentages shown in the table. This calculation shows the “years to market” and “years to maximum” that would be required to reach either level in the pay plan, based on the percentages noted in the table. PFP Score ADJUSTMENTS From To Employee YRS Employee YRS Employee Employee YRS Above Max MAX Above Mkt Max at Mkt YRS Below Mkt MKT From To 0 19 0.00% N/A 0.00% N/A 0.00% N/A 0.00% N/A 20 29 0.00% N/A 2.00% 15.0 2.50% N/A 3.00% 7.0 30 35 2.00% N/A 2.50% 12.0 3.25% N/A 4.25% 4.9 36 41 2.75% N/A 3.25% 9.2 4.00% N/A 6.00% 3.5 42 50 3.50% N/A 4.00% 7.5 4.75% N/A 6.50% 3.2 The current approach and assigned percentages result in an uneven movement toward the market and maximum of the assigned pay range. In all cases, the row that equates to the score of 30 – 35 (“Good” or “Meets Expectations”) is more aggressive than the City’s presumptive policy. Management Advisory Group, Inc. 2009 5-2

City of Dover PFP Report Plan Simplification The recent and current economy dictates a responsible and reasonable approach towards performance adjustments. Employees are seeking a more straightforward and understandable system of adjustments. The current approach is often viewed as being manipulated and so complex that it is difficult to explain and follow. There is certainly a mixed view of the concepts (and resulting adjustments) by employees who are either “below market” or “above market”. While there is a defensible philosophy upon which the current system is structured and implemented, MAG recommends a methodology that employs some elements of that underlying philosophy, yet includes an easy to comprehend approach. There are several elements of the system, and they are presented one at a time below. 10 Years to Midpoint The first construct or basis of the system is that of the number of years upon which the structure is based. MAG recommends that the system be based on a “normal progression” with 10 years to the arithmetic midpoint. This is similar to the current program except that it would mean eliminating the concepts of “below market” and “above market”. Instead of using “below market”, the recommended approach would advance an employee who “meets expectations” to the midpoint in 10 years. Recommendation #10: Base the movement within the pay grade on the concept of a “normal progression” career plan for employees who “Meet Expectations” to reach midpoint in 10 years. Use of Midpoint to Calculate Adjustments Historically, following the completion of a performance evaluation, the City has provided percentage adjustments to the employee’s current salary. The results of this practice, in combination with the application of the “below market” and “above market” concepts, have been a source of concern within the workforce as being inequitable. Management Advisory Group, Inc. 2009 5-3

City of Dover PFP Report To simplify the adjustments, and based on equity within the compensation plan structure, MAG recommends using the midpoint of the assigned pay grade as the basis of potential adjustments. A position title in a particular grade has an identified market range value. Any performance evaluation adjustments would be based on the arithmetic midpoint of the pay range within which the position title is assigned. For example: ¾ Computer Operator and GIS Technician are both grade 113. Each has the same midpoint value ($36,989). If a Computer Operator produces a higher performance evaluation score than the GIS Technician, then the Computer Operator would receive a higher adjustment. If the performance evaluation score translates into a 4% adjustment for the Computer Operator, the dollar value of the increase would be $1,479.56. If the GIS Technician’s performance evaluation translates into a 3% adjustment, the dollar value of the increase would be $1,109.67. If their scores are in the same range, they would both receive the same dollar value of adjustment. This practice would have a somewhat similar effect of moving the person with a salary lower than the midpoint at a faster pace, but would also enable experienced incumbents to advance towards the maximum level of the pay range. This concept is simpler than the current approach. It would not matter whether the incumbent was at the lower end of the pay range or in the upper portion of the pay range. The increase is influenced more by performance than by relative position within the pay range. Recommendation #11: Use the arithmetic midpoint of the position’s assigned pay grade as the basis for calculating potential performance adjustments. Calculating Performance Adjustments Performance adjustments would be based on the midpoint of the assigned pay range of the position held by the employee. The potential annual performance adjustments on a percentage basis would have to be identified each year, as a function of several factors, including any structural adjustment made, actual performance score, and the available dollars. Management Advisory Group, Inc. 2009 5-4

City of Dover PFP Report The City has historically made structural adjustments to the entire compensation structure to recognize increased costs of living and to ensure the City’s overall competitiveness within the general market. The City should continue its practice of using labor market indicators to make structural adjustments. In order to provide performance evaluation adjustments based on the midpoint, the arithmetic midpoints would have to be calculated each year. The percentage adjustments would range from zero (0) percent for employees scoring fewer than 20 points in their evaluation, which is current policy. The percentage of midpoint adjustments for the other four (4) categories of PFP scoring would have to be determined each year based on any structural adjustment made, actual performance score, and the available dollars. For example, if the City makes a 3% structural adjustment to the pay structure, the following set of adjustments would occur: PFP Score Rating Adjustment as a percentage of midpoint 0 – 19 Unsatisfactory 0 20 – 29 Needs Improvement 2% 30 – 35 Meets Expectations 3% 36 – 41 Commendable 4% Results Rarely 42 - 50 5% Achieved by Others One can readily see that it will take an employee a longer period of time to reach higher salary levels if their performance evaluation scores are lower than the employee who regularly achieves higher annual evaluation scores. The likelihood is that employees will score at varying levels during their employment with the City. The Management Advisory Group, Inc. 2009 5-5

City of Dover PFP Report movement is based on performance. Consistent evaluations at the “Needs Improvement” level should not occur, as it would bring into question the viability of continued employment. Recommendation #12: Establish a simple and straightforward program for potential adjustments of zero (0) through an annually determined percentage amount for all other categories of evaluation. Normalizing Scores by Human Resources The City has attempted to compensate for lenient or harsh raters by having the HR Department review the scores and make recommendations back to the Departments with respect to the perceived “rating tendency” of various supervisors. A statistical formula should be developed and employed that can convert the scores into rater profiles and allow for comparison of rater profiles. While using a statistical model will help to reduce the perception that the HR department is substituting its judgment for that of the supervisor, it will not be entirely without pitfalls. The reality is that the group being evaluated is already, in the nomenclature of statistics, “pre-selected”. In other words, these incumbents have already been promoted from lower level positions or have been hired in at a higher level. As a result, one would not expect that their evaluation scores would reproduce a balanced bell curve. The following chart provides an example of how rating patterns of various managers can be compared by graphing on a standard bell curve chart. CHART OF COMPARATIVE RATING PATTERNS Management Advisory Group, Inc. 2009 5-6

City of Dover PFP Report It can be observed, from the figure above, that Manager 'A', compared to Manager 'B', has the tendency to rate most of his subordinates at 7 to 8 points on a Performance rating scale of 1 to 10. Manager 'C', on the other hand, is highly conservative and awards given to the best of his subordinates are in the range of 5 to 6 points. Thus, an average performer with Manager 'B' gets equated with the Best employee reporting to Manager 'C' and with a low average subordinate of Manager 'A'. The City has attempted to adjust for rater tendency by making compensating recommendations. However, this process is not always perceived by employees, whose scores may have been adjusted, as being objective and equitable. Many organizations choose to ignore the problems created by rater tendency. The City of Dover is commended for recognizing and attempting to address this very valid concern. Without any adjustment, those employees who are assigned to a harsh rater may leave the City and those assigned to a lenient rater may be the managers of tomorrow. Suppose there are 10 appraisers in the City, each with a high degree of variability in their performance appraisal scoring. The process of balancing this variability is called “normalization”. The Normalization Process An overview of the process is comprised of the following steps: 9 'Statistical Mean' of organizational rating pattern of all the Managers (i.e., Appraisers) at the same level, across various departments, is computed. Let this Mean be 'M'. 9 Statistical Mean for each of the Appraisers at the same level (i.e., for all the 10 Managers in the example given above) is computed. Each Manager should have done the Appraisal for 40 to 50 employees (may be over the last 5 years). Let this Mean be 'Mi ' (i = 1 to 10). 9 A correction Factor (CF) for each of these Managers (Appraisers) is then computed = Mi / M. Its value, for example, will be 1.0 if the rating pattern of a Manager is the same as the statistical Mean for all the Managers. Management Advisory Group, Inc. 2009 5-7

City of Dover PFP Report 9 Performance Score of each individual employee is divided by CF for his/her Manager to compute its normalized value. This normalized score is utilized for all management decisions. There are other factors that should be considered in a normalization process. Data can be compiled from previous year’s evaluations to have enough data from each of the raters to insure statistical validity. While it is possible to manually manage a normalization process, MAG would suggest that the City consider automating this approach. This should address both the concerns that the Human Resources Department is “changing ratings” and also address the criticism that it takes a very long time for the Human Resources Department to complete the review process. Critical to the success of any normalization process is the timely completion of the evaluations. It is imperative that all evaluation scores are available for normalization comparison at the same time. Recommendation #13: Enhance the reliability of the normalization process by adopting a statistically recognized process for comparing performance appraisal scores between and among raters. (The process briefly outlined above is not all inclusive. Automate the process of normalization of the performance scores either by contracting with MAG to develop the program or by assigning it to in-house IT staff. Recommendation #14: Enhance the current policy of holding up any salary adjustment for a supervisor who has not completed his or her evaluation to holding up the entire City-wide processing of adjustments until all supervisors have completed and submitted their evaluations to the Human Resources Department. MAG would also recommend that within three days following the date for submission, that the Human Resources Department shall prepare and publish on the City’s intranet a list of those supervisors/employees who have not submitted a completed evaluation. (This would not apply to Council appointees, but would apply to all employees in the department of a Council appointee.) Management Advisory Group, Inc. 2009 5-8

City of Dover PFP Report Planned Goals and Unplanned Assignments The scoring is based on a five point Likert Scale and is easy to understand and to use. The “weighting” approach makes common sense and is also easy to use and understand. Recommendation: No change Core Competency Elements Employee criticisms of the core competency elements included “overlapping”, “redundant”, “too wordy” and “repetitive”. These criticisms appear to be valid. While it is very difficult to develop a performance appraisal system, it is relative easy to be critical. MAG’s comments with respect to the Core Competency Elements are made with the greatest respect for the difficulty of developing the system and fully recognizing that conducting a critical review is easier than creating a system. The Core Competency Elements include the following Standards: ¾ Accountability/Leadership/Work Management ¾ Communication and Customer Service ¾ Job Knowledge ¾ Planning, Organization, Problem Solving and Decision Making ¾ Relationships within the Organization For Supervisors an Additional Standard: ¾ Supervisory Skills In the sample reviewed, each Standard had from four (4) to 11 “elements”, with the average being more than seven (7). In the sample reviewed, the elements were not always related to the standard and in some cases, there were multiple versions of the same element, just worded slightly differently. Management Advisory Group, Inc. 2009 5-9

City of Dover PFP Report When the same or very similar elements occur, if the employee is considered to be “outstanding” the first time the “element” appears, they would then appear to continue to be “outstanding”. Conversely, if an employee was not scored high on the element the first time it appeared, when a slightly different version of the same element appeared again, it would overweight that negative rating. Additionally, in the same sample reviewed by MAG, the elements listed for “Job Knowledge” were all examples of what should have been considered the accepted qualification for performance of the job. The elements listed were “required” knowledge for the job, but the employee was rated “Outstanding” on “Job Knowledge” with no particular examples of why the rating would have been so high. The “justification” for the “Outstanding” evaluation would have supported “Meets Expectations”, but would not, for the level of the employee being reviewed, have been support for the highest level of evaluation. Each of the Standards should be defined as to what they are attempting to measure and should be directly related to the job. Each Standard should have no more than three or four elements. The elements should be clear and distinct. The elements should be directly related to the defined standard and should be clear examples of the desired behaviors purporting to be measured. The following is an example of a Standard and related elements: Management Advisory Group, Inc. 2009 5-10

City of Dover PFP Report Sample Table Showing Standards and Elements Teamwork Works with others either in formal teams or ad hoc groups to accomplish tasks or provide services effectively and efficiently. Cooperation (Examples may Include): • Works well with other Agency groups and organizations for the success of the group or organization. • Works with others in developing and implementing solutions to problems. • Assists others to meet objectives. • Maintains effective working relationships with team members. • Actively participates in team efforts. Leadership (Examples may Include): • Leads or follows, as necessary, within the team. • Takes initiative to arbitrate and resolve disagreements if they arise. Commitment to Team Effort (Examples may Include): • Shares information willingly. • Shares credit, recognition, and visibility with others. • Supports and promotes team decisions and initiatives. In the example provided, the Standard is “Teamwork”. There are three Elements, “Cooperation”, “Leadership” and “Commitment”. The statements under each element are to provide examples. The examples are not meant to be all inclusive, but rather suggestive of acceptable behavior or outcomes. Each of the Standards should be defined. The definition should be a simple one and easy to understand. Then, the elements should be edited to two or three, and examples provided that would suggest a successful measure or outcome for the element. If successful measures or outcomes cannot be identified, then the element may not be appropriate and should be removed or replaced. The definitions of the standards should be appropriate to the level of the work being reviewed. While the standard, “Communication”, might be appropriate for all employees being reviewed, the definition may differ and the elements for this standard would vary considerably based on the level of the incumbent in the organization. Management Advisory Group, Inc. 2009 5-11

City of Dover PFP Report The City has done an excellent job of developing a form that is simple to use and easy to understand. The changes that would improve the system are meant to be positive suggestions and not to be overwhelming. Most of the information needed to strengthen the content and format of the forms is readily available. The basic framework already exists. The re-work could be fairly quickly accomplished and then reviewed by the incumbent and supervisor for finalization. Recommendation #15: Review the Core Competencies and Elements to add definitions for the Core Competencies and to streamline the elements statements. Management Advisory Group, Inc. 2009 5-12

SECTION 6.0 RECOMMENDATIONS ON RELATED PFP ISSUES This section provides recommendations on key issues raised during the study process. Management Advisory Group, Inc. 2009

City of Dover PFP Report 6.0 Recommendations on Related PFP Issues 6.1 Adherence to Policy For the non-bargaining positions for which performance evaluations are to be completed, City staff has completed the evaluations as required. This may seem to be an obvious point, however, there are agencies with evaluation programs that simply do not follow through, or are so late in conducting evaluations so that they are rendered meaningless. Dover has been highly responsible in implementing the PFP evaluation programs and evaluations. One of the reasons is that the program has “teeth”, in that supervisors are not able to receive a potential adjustment if they do not complete their evaluations in a timely manner. The pressure to perform evaluations, and in a timely way, has been institutionalized within the organization. With respect to the implementation of the system, MAG finds: ¾ evaluations are being completed annually as policy requires; ¾ market salary ranges are being adopted every year; ¾ Council is informed as to market changes and salary calculations; ¾ supervisors are not receiving increases until subordinate reviews are completed; ¾ evaluations include goals and objectives (current and anticipated); ¾ adjustments are determined by performance scores; ¾ percentage adjustments have been consistent with stated policy, as employees move towards the market rate with higher increases than an employee above the market rate with the same performance score (Section 5.0 establishes a new method of calculating increases); ¾ Human Resources has taken actions for quality control by reviewing the consistency of SMART goals with the City’s Strategic Plan and looking for unusual scoring patterns; ¾ Evaluator training has been provided once per year, which is viewed internally as sufficient (34 of 37 responses by supervisors indicated that they have enough knowledge of how to use the PFP system. Recommendation #16: Continue to complete performance evaluations annually as dictated by current policy. Management Advisory Group, Inc. 2009 6-1

City of Dover PFP Report 6.2 SMART Goals, Departmental Goals, and Quarterly Reviews Generally, clear goals are being established meeting the SMART criteria. This is one of the more difficult aspects of developing a meaningful performance evaluation program. Some departments appear to be better able to accomplish this than others, either due to the nature of the work or the extent of effort applied to the task. Some work is more easily measurable and therefore able to be quantitatively described and evaluated. Because jobs change over time, establishing goals meeting the SMART criteria requires regular and routine monitoring. It also appears that the departments make an effort to incorporate the departmental goals and objectives into the goals and objectives of the individual employees. This is not an easy task and is easier done by some departments than others. Some jobs don’t always have full control over their goals and objectives, and departmental goals change as well. Incorporating departmental goals into individual employee evaluations requires constant monitoring. The set of instructions for the PFP policy requires that supervisors meet quarterly with the employee to discuss progress toward the goals and objectives established. In practice, this is not performed evenly throughout the City departments. It is a reasonable requirement that forces managers and supervisors to maintain currency in performance goals. When employees were asked whether evaluations are done consistently across departments, of 74 responses, 14 people answered “Yes”, while 14 people answered “No”. Most respondents (46) did not know or could not answer the question. Section 5.0 indicates that the core competencies need to be reviewed and edited for duplication and redundancies. Recommendation #17: Require managers and supervisors to document the quarterly review of goals and objectives with their employees. If the quarterly reviews are not documented, the supervisor would be denied (not simply deferred) a possible increase at the time of their own evaluation. Management Advisory Group, Inc. 2009 6-2

City of Dover PFP Report 6.3 Administration and Control A system of performance evaluation requires monitoring to ensure that the base policy requirements are met, that all needed actions are occurring in a timely manner, and that employees have a perception of fairness regarding the outcomes. As required in the PFP Policy, Human Resources has taken actions for quality control by reviewing the consistency of SMART goals with the City’s Strategic Plan and looking for unusual scoring patterns. Employees noted that the monitoring role has expanded into departmental areas of responsibility and affected scores. As noted above, the Quarterly Review cycle must play a critical role in ensuring that the goals are appropriate for each position. Developing or re-writing the goals and then conducting Quarterly Reviews is primarily a departmental matter, and should not be left to the Human Resources Department to re-write goals or second guess their relevance. Human Resources should review the goals for consistency with the City’s Strategic Plan, remind Department Heads to conduct the Quarterly Reviews, and also determine if unusual scoring patterns do indeed exist. MAG has recommended that the City utilize a recognized statistical process of comparing and normalizing scores to overcome rater tendency. This is constructive and meaningful feedback to the Departments and raters. Recommendation #18: Make the accurate implementation of the PFP system a key element of the core competency for Supervision. If a supervisor does not implement the PFP system, Supervision should be downgraded substantially. This should be reflected in the Supervisory Core Competency. Recommendation #19: Include monitoring goals for the Human Resources Director to ensure consistency with the City’s Strategic Plan, reminding departments of the need for Quarterly Reviews, setting up annual training on the program, and identifying unusual scoring patterns to the City Manager, the Department Head and the rater. This should be reflected in the Supervisory Core Competency. Management Advisory Group, Inc. 2009 6-3

City of Dover PFP Report 6.4 Appeal Process Part VI of the City’s PFP Policy describes a process under which employees may appeal their performance evaluation. Questions regarding the appeals process were asked of employees attending sessions in December 2008. Of the 72 responses, six (6) people indicated that they have appealed an evaluation, while 62 respondents indicated they had not ever made an appeal. Of the six (6) people who appealed, two (2) indicated a satisfactory response, while three (3) were not satisfied. One (1) appellant did not discuss the outcome. Five (5) people had no response. One may conclude that the appeal process is available to all employees and very few have made an appeal over the last several years. This is a relatively low number of appeals for 80 plus people through four (4) years of experience. While three (3) of the six (6) appellants were not satisfied with the outcome of their appeal, there has been no indication that the appellants have not been treated fairly. Recommendation #20: Continue the current process regarding appeals. 6.5 Retention Two of the issues for consideration included whether new recruits are staying with the City and whether the system is working to retain quality employees. Excellent retention is a function of many factors, including the ability of incumbents to advance in pay. The City has made both range structure adjustments and performance adjustments over the last four (4) years. The structure adjustments have been competitive with other agencies. The performance adjustments move “under market” incumbents at a faster rate than “over market” incumbents. The workforce appears to be stabilized, although the implementation of a positive performance evaluation system may not be the primary reason for this stabilization. Management Advisory Group, Inc. 2009 6-4

City of Dover PFP Report In a related question, two-thirds of employees responding to a question as to whether the system helps retain high performing employees answered “No”. Many people indicated that performance evaluation will not make a substantial difference in whether an incumbent stays or not. Rather, the internal motivation has greater impact on the interest and willingness of an incumbent to remain. 6.6 Employees Above the Maximum One issue raised was whether the system reduced or eliminated the number of employees above the maximum and prevented employees from advancing above the maximum. In the database established during the classification and compensation review, only one (1) person was identified as being over the maximum. The incumbent received a demotion and the salary was not reduced below the maximum of the reassigned position. One may conclude that the systems (both classification/compensation and performance) have minimized the number of employees above the maximum and have prevented employees from advancing above the maximum. The City’s proposed 2008-2009 PFP matrix included a performance based adjustment of salary for employees whose salary exceeded the maximum of the range. Organizations are divided on providing increases to employees above the range maximum. Recommendation #21: If the City adopts a policy of providing a performance based monetary recognition, the City should consider providing any amount above the maximum of the range in a one-time lump-sum payment that does not roll into the base salary. Management Advisory Group, Inc. 2009 6-5

City of Dover PFP Report 6.7 Results, Goals, and Motivation Several additional issues were raised in reference to the performance evaluation system, including whether the City is getting results based performance due to rewarding better performance; whether employees are more goal oriented under this system of evaluation; and, whether employees are more motivated to perform better under this system. In response to a question as to whether employees are generally more goal oriented under this system of evaluation, of the 77 responses, 44 people answered “Yes”, while 17 people answered “No”. Two (2) people were unsure or non committal. Two-thirds of employees who answered the question do believe that they are more goal oriented under the system of evaluation. Employees appear to conclude that establishing goals is relevant to their jobs. Of the 71 responses to a question on the matter, 64 people answered “Yes”, while five (5) people answered “No”. Nine (9) of the responses were non-committal or unclear. As to whether employees are more motivated to perform under the PFP system, Department Heads noted that motivation is more internally generated, and that the potential increases, while sought after, are not the primary drivers of motivation. This is not the message from general employees. The fact that there is less reward potential to employees who are “above market” than employees who are “below market”, was noted as a concern by some. The City’s compensation philosophy of moving employees quickly who are “under market” is consistent with compensation strategies in the general market which reflects a steeper learning curve early in their career. Management Advisory Group, Inc. 2009 6-6

City of Dover PFP Report 6.8 “Below Market” Advancements An issue raised is whether “below market” employees are advancing to “at market” at the expected rate. Non-bargaining employees, using MAG’s software system, all appear to be advancing through the ranges at an acceptable pace. Using a “7 years to market and 20 years to max” calculation, MAG did not identify any significant deviation that required immediate administrative redress. Any differences in rate of progression can be largely explained by reviewing differences in rewards earned under the pay for performance system. 6.9 Scoring System Differentiation Another noted issue is whether the scoring system is working to differentiate better performance. The scoring system is differentiating between and among employees’ salaries in the various pay ranges, and, given the general enthusiasm for the system, one may conclude that pay for performance must be working. While many employees offered comments and criticisms of the system designed to improve it, only two dissenting voices were heard that would scrap the whole system. Management Advisory Group, Inc. 2009 6-7

SECTION 7.0 IMPLEMENTATION TABLE OF RECOMMENDATIONS This section includes a table that identifies each recommendation, responsible party, time frame, impact, and potential cost for each of the study’s recommendations. Management Advisory Group, Inc. 2009

Dover, Delaware 7.0 IMPLEMENTATION TABLE OF RECOMMENDATIONS CITY OF DOVER, DELAWARE REVIEW OF PAY FOR PERFORMANCE SYSTEM Estimated Projected Savings or Rec. # Action Step Responsibility Completion Impact (Costs) Change the PFP policy to require City Manager and Ongoing No adverse impact, as Staff time saved. 1 training for supervisors once per HR Director recommendation reflects year. If training is not attended, current practice. deny any salary increase for which the supervisor may be eligible. Establish a more precise time City Manager and February Clear expectations and None. 2 frame within the set of Instructions HR Director 2009 accountability. so as to clearly define the time allotted for each step in the performance review cycle. Written quarterly reviews should Department Ongoing; Improved monitoring and Staff time to complete 3 be done by Department Heads, Heads Quarterly annual evaluations. quarterly reviews. and documented in the evaluation by entering into the PFP software. All employees Annually, at Improved annual Staff time to complete 4 All evaluated employees should under the evaluation time. evaluations and self evaluations. conduct self evaluations, with the evaluation system. supervisory/employee purpose of then comparing them at interactions. the formal performance evaluation meeting. Page 6-1

Dover, Delaware CITY OF DOVER, DELAWARE REVIEW OF PAY FOR PERFORMANCE SYSTEM Estimated Projected Savings or Rec. # Action Step Responsibility Completion Impact (Costs) Change the current performance City Manager and February Accuracy in performance None. 5 form label of “Good” to “Meets HR Director 2009 labeling. Expectations” on the evaluation form. Change the current performance City Manager and February Accuracy in performance None. 6 form label of “Acceptable with HR Director 2009 labeling. Some Improvements Needed” to “Improvement Needed” on the evaluation form. Change the current performance City Manager and February Accuracy in performance None. 7 label of “Outstanding” to “Results HR Director 2009 labeling. Rarely Achieved by Others”. Create a committee structure to City Council March Improved annual None. 8 evaluate Council appointed 2009 evaluations for Council positions that would make appointed positions. recommendations on compensation adjustments for the evaluated employee. Page 6-2

Dover, Delaware CITY OF DOVER, DELAWARE REVIEW OF PAY FOR PERFORMANCE SYSTEM Estimated Projected Savings or Rec. # Action Step Responsibility Completion Impact (Costs) Apply the changes noted in City Manager March Improved annual None. 9 Section 5.0 to the development of 2009 evaluations. Core Competencies for the Council positions. City Manager; April Less cost than current PFP Unknown. 10 Base the movement within the pay Council Approval; 2009 for July matrix and consistency grade on the concept of a “normal Human Resources evaluations. from year to year progression” career plan for employees who “Meet Expectations” to reach midpoint in 10 years. Use the arithmetic midpoint of the City Manager; April Equity and system Unknown. 11 position’s assigned pay grade as Council Approval; 2009 for July simplification the basis for calculating potential Human Resources evaluations. performance adjustments. Establish a simple and City Manager; April Equity and system Unknown. 12 straightforward program for Council Approval; 2009 for July simplification potential adjustments of zero (0) Human Resources evaluations. through an annually determined percentage amount, based on budget availability. Page 6-3

Dover, Delaware CITY OF DOVER, DELAWARE REVIEW OF PAY FOR PERFORMANCE SYSTEM Estimated Projected Savings or Rec. # Action Step Responsibility Completion Impact (Costs) City Manager; Can commence Establish reliable process Unknown. 13 Automate the statistical Council Approval; upon approval of comparing rater profiles; normalization of rater IT or MAG support more equitable evaluation comparisons. across raters/departments. Can commence Essential to rater profiling None. 14 Hold up salary adjustments until all City Manager upon approval. process that all evaluations evaluations are complete; publish are available at the same stragglers on the City’s intranet. time. Streamline and enhance Core Human Resources Dependent on More valid and reliable Unknown. 15 Competency and Element with assistance in-house or Format and basis for statements. contractual assessment. assistance. 16 Continue to complete performance City Council; Ongoing Documentation and Staff time and evaluations annually as dictated by City Manager monitoring of performance. preparation of materials. current policy. Page 6-4

Dover, Delaware CITY OF DOVER, DELAWARE REVIEW OF PAY FOR PERFORMANCE SYSTEM Estimated Projected Savings or Rec. # Action Step Responsibility Completion Impact (Costs) 17 Require quarterly review of all City Council; March 2009 Enhance communications Additional time for employees being evaluated. City Manager and establish consistency supervisors not currently across the system. doing this. 18 Add responsible participation in the Human Resources March 2009 Further strengthen the None. PFP as a Supervisory Core system – greater Competency. accountability Add monitoring and reminder goals City Manager; As soon as Add accountability to the Unknown 19 to the Core Competency of the HR Human Resources model is rater profiling and Director. Director complete normalization process Continue the current process for Human Resources No change No change No change 20 appeals. Any pay out for performance over City Manager; Adopt new Do not compound base Long-term cost control 21 the maximum of the range is a City Council policy salary above the maximum lump-sum one-time payout that of the range. does not roll into the base salary. Page 6-5

APPENDIX 1 PFP Description, Instructions, and Forms: This appendix includes the current Performance Based Pay Policy dated April 19, 2005. Also included are the instructions that supervisors are to follow during the performance review cycle, and a sample form used to evaluate Non-Council Appointed Positions. Management Advisory Group, Inc. 2009

City of Dover Performance Based Pay Policy For Non-Bargaining Employees April 19, 2005 I. Purpose The City of Dover Performance Based Pay Policy is intended to provide equitable compensation based on performance for all exempt and non-exempt positions when considered in relation to each other and to general pay ranges for similar employment elsewhere. This policy rewards excellence in core competencies, as well as the ability to get results. This will allow the City to maintain an effective, responsible and loyal work force, and allow us to recruit and retain high quality employees. The Policy establishes pay ranges and maintains an effective ongoing pay system for appropriate compensation recognizing the importance of results-based performance. II. Pay Plan Maintenance New market-based salary ranges shall be adopted every year after consideration of a market survey that considers both external and internal movement in market salaries. The ranges shall establish an entry-level rate, market rate and a maximum rate. The City Manager will forward the results of the market survey and his recommendations to Council for consideration during the annual budget process. The increases in salary ranges shall not be considered as cost of living increases, but shall serve to keep ranges up to date so that employees’ performance is properly evaluated within the context of where their salary lies within the market place. III. Performance Evaluations and Advancement Guidelines Performance evaluations must be completed annually, prior to any consideration for an increase in pay. No supervisor shall receive an increase in pay until subordinate evaluations are complete. The evaluation will include measurement of the results of predetermined goals and objectives, unplanned assignment results and core competencies. The evaluations shall give goals and objectives for the coming evaluation year. The amount of the proposed pay increase will be determined by the overall Performance Score as applied to the Pay-for-Performance Worksheet in accordance with the table found on the worksheet. The Pay-for-Performance Worksheet shall be approved by City Council with the annual budget. Appendix A is the model Pay-for-Performance Worksheet; the areas where percentage increases will be placed have been left blank. -1-

In general, the percentage increase for employees scoring between 21 and 30 evaluation points whose current salary is within the market range (within the 2nd third of their salary range) will receive an increase equivalent to market increases as determined by the annual market survey. In general, employees with lower scores will receive lower percentage increases, and those with higher scores will receive higher percentage increases. To advance employees to the market rate, employees who are compensated at levels below market will receive increases that are higher than those who are at and above the market with similar performance scores. In some cases with low scores or salaries above maximum, there may be no increases. While it is the intent of the City to keep salaries competitive within the market place, the City Council reserves the right to set percentage increases based on what it determines the City can afford regardless of changes in the market. IV. Evaluation Quality Control Systems To ensure quality control, the Human Resources Department will review the latest employee performance evaluations in August of each year to ensure that they have clear and concise goals and objectives with expected results that are aligned with the City’s Strategic Organizational Plan. Goals are to be S.M.A.R.T. (Specific, Measurable, Attainable, Realistically High, Target Date). The comments supporting the results achieved must be specific to the goals and/or competencies and not just a repetition of the goal or objective. Achievement or lack thereof of results and progression in core competencies are to be outlined in these comments. The Human Resources Department will also review the evaluators for unusual patterns such as consistently high/low patterns of scoring, as well as incomplete or unrelated comments to support the performance points associated with the goals and objectives. While there are no formal quotas, there is an expectation that scoring will naturally fall into a normalized pattern, particularly as evaluations are considered over time and in groups. Feedback will be given to evaluators and their department heads to give them the opportunity to justify the perceived inequities or patterns and if necessary correct the problem(s). V. Procedures for New Job Titles/Grades and Re-grading and Retitling Existing Positions To establish new job titles, grade new positions, or re-grade and re-title existing positions where job responsibilities have changed, the following procedure must be followed: -2-

1. Department heads must submit a proposed job description along with a completed Position Analysis Factor (PAF) Guide to the Human Resources Department with an explanation outlining the reasons for the new title, re- grade or new position. The Human Resources Department will enter the Position Analysis into the Job Analysis Qualification (JAQ) software to determine the salary grade. The Human Resources Director shall compile all of the new positions, new titles and new grades and forward them to the City Manager for consideration within the annual budget. 2. To ensure that existing job titles and grades are kept current, as part of the budget process each Department Head/supervisor will give the employee a copy of their current job description and ask the employees to review the description for accuracy. The employees will return the job descriptions within one (1) week of receiving them from the Department Head/supervisor and discuss the changes (if any) with the Department Head/supervisor. The Human Resources Department will review the submitted information within one (1) week from receiving it from the Department Head for appropriateness and use the Position Analysis Factor Guide to reevaluate the position. When reclassification is initiated, all incumbents holding the same job title should complete a JAQ. A desk audit usually at the job site would then be conducted with the individual being considered for reclassification or with a representative number of people if the reclassification request affects a number of people with the same title. Key questions concerning the job should be answered to assist in determining the proper level within the overall pay and classification system. The analysis of all the information is then compared to the current position description for the various classifications’ levels and weighted, using the same quantitative point-factor rating criteria used to establish the level of all positions in the City pay plan. The Human Resources Department will notify the Department Head and City Manager of the outcome of the review and recommendations. The employee shall be informed of the outcome by the Department Head. Proposed reclassifications will be included in the budget proposal of the City Manager. 3. Hiring, promoting and re-grading an employee to a new or open position will be done in accordance with established procedures outlined in the Employee Handbook. -3-

4. Establishing the hiring salary or salary increase associated with a promotion or re-grading will be derived as follows: a. Employees will be placed within the approved salary range at the entry level. On occasion for highly skilled, technical, or managerial positions, it would be necessary to hire above the minimum rate in the range, but not above the market rate. In these cases, consideration will be given to the applicant/employee’s education, equivalent experience, related experience and past performance. Recognizing that the current salary ranges are based on a 20-year period between the entry salary and maximum salary the individual may be placed within the salary range using the following guidelines: (1) The employee will be given credit for equivalent experience year for year; (2) Credit for related experience will be ½ year for year; (3) Year for year equivalent experience credit will be given for college experience beyond the minimum required where a related Master’s or related Bachelor’s Degree has been obtained. A recommendation to hire above the minimum rate in the range should be documented by the supervisor, reviewed and endorsed by the Human Resources Director and approved by the City Manager. VI. Personnel Evaluation Appeal Process Employees dissatisfied with evaluations are entitled to dispute the evaluation through the following appeal process. 1. Employees may request an appeal of the evaluation within seven (7) days of receiving the evaluation. 2. The appeal must be filed with the employee’s immediate supervisor, in writing, stating the reason(s) for the dispute. The contents of the appeal request must include the specific categories being appealed, the rating sought, and the justification for the change. The immediate supervisor’s decision will be rendered to the employee, in writing, within seven (7) days. 3. If an employee is dissatisfied with the immediate supervisor’s decision, then the appeal will be forwarded within seven (7) days to the next level of supervision for that division along with a copy to the Human Resources Director. 4. If the employee is still dissatisfied with the decision, the process will continue through each level of supervision up to the City Manager or the Mayor and Council depending on the reporting relationship. City Manager and Council Appointee Department Heads shall have final decision on employees within their departments. Mayor and Council shall hear any appeals by the City Manager or Council Appointed Department Heads. Any appeal going as far as the City Manager, Council Appointed Department Heads, or Mayor and Council will be first submitted to the Human Resources Director. -4-

VIII. Instructions for Using the Pay-for-Performance Evaluation Detailed instructions are located on Public Docs in the Pay-for-Performance folder. IX. Evaluator Training All evaluators will receive detailed training in setting S.M.A.R.T. goals and objectives, preparing for and giving Pay-for-Performance evaluations, using the Pay-for-Performance Worksheet and completing the Position Analysis Factor Guide prior to implementation of this new system. Ongoing and refresher training will take place as needed but not less than two (2) times each fiscal year. Training will be mandatory and will include the following subjects: introduction of policy, purpose, guidelines, components of policy, evaluation, appeal process, S.M.A.R.T. goals and objectives, JAQ scoring system and plan administration. Appendix A P.F.P. Salary Calculation Worksheet (Adopted by City Council _______________) Instructions: The total PFP adjustment is calculated by carrying forward the Overall Score from page 1 and finding the range in the two left-hand columns of the following matrix in which the score falls. The PFP adjustment is found in the right-hand column. OVERALL SCORE ADJUSTMENT Employee Employee Employee Employee FROM TO Below At Above Above Market(1) Market(1) Market(1) Maximum 0 19 20 29 30 35 36 41 42 50 (1) Below Market = first third of salary range; At Market = second third of salary range; Above Market = top third of salary range. -5-

Instructions for the Performance Review Cycle Please realize that annual reviews are due to the Human Resources Director by May 31. A supervisor shall arrange to meet with the employee to discuss the employee’s evaluation no later than June 25 of each year. Failure to provide a completed evaluation for an employee in a timely manner, no later then July 1, will cause the effective date of the Department Head’s pay-for-performance pay increase, if one was granted, to be extended by the number of days the evaluation was not received if the failure to submit a completed evaluation harms the evaluated employee. For example, if pay-for-performance increases are effective July 1 and the Department Head submits the evaluation on July 5 (five days late), the Department Head’s pay-for-performance increase would be granted, if he or she was entitled to one, on July 5. The employee’s increase, if one was granted, would be retroactive to July 1. Sufficient time for review by the Human Resources Director shall be considered when determining a timely manner. For example, submission of the evaluation on June 30 may not provide ample time for the Director to review and return to the evaluator. This may cause harm to the evaluated employee. Before conducting a performance evaluation, a supervisor must give an employee a reasonable time to demonstrate performance. THROUGHOUT THE YEAR Observe and document the employee’s performance and give immediate feedback whenever possible. Documentation at this point can be somewhat informal, but try to keep a record of what the employee does, both good and bad. This record will be very helpful in completing the remarks/example section of the evaluation as well as ensuring the employee is not being evaluated on a short timeframe. Ask the employee for input about their performance during the year. This is important because the performance review should be based on two-way communication, so that it is not merely a “report card.” The employee’s input can be any combination of the following: A draft performance appraisal prepared by the employee A list of accomplishments and significant events An informal discussion between the employee and supervisor It is important to keep in mind that the supervisor should collaborate and seek advice from others in evaluating the employee throughout the year. Other supervisors, employees, customers, division and department heads may be able to provide important insights. QUARTERLY REVIEW (generally October, December and March) Meet informally with the employee to discuss progress toward the goals and objectives as outlined in Part 3 of the Pay-for-Performance Evaluation for the previous year. Update, add or remove goals as necessary since the last review. Unexpected and unplanned assignments may arise. As new goals are added, it is important to evaluate the employee’s capacity to accomplish -1-

already established goals. By keeping goals and objectives current, the necessity of documenting unplanned assignments in “Part 1” during the Annual Review will be minimized. Indicate any additional comments by the supervisor or employee in the supervisor’s log/journal. PROBATIONARY REVIEW All new employees shall receive a formal probationary review for no less than six months of active service and no more than seven months of active service. Goals are to be established for the new employee to complete during the probationary period. See next section, Annual Review, for additional information. ANNUAL REVIEW Employees hired between July 1 and November 30 of each year shall receive a probationary review for no less than six months of active service and no more than seven months of active service in addition to an annual review in May. On July 1, the employee would be eligible for a pay-for-performance increase. Employees hired between December 1 and June 30 shall not receive an annual review in May; however, they would receive a probationary review upon completion of six months of active service and no more than seven months of active service. Employees would be eligible for a pay-for-performance increase at their one-year employment anniversary. These employees would then receive an annual review in May of the following year and be eligible for a pay-for- performance increase on July 1 of the following year. The pay-for-performance evaluation instructions are available on Public Docs in the Pay for Performance folder while the evaluation is available on the City’s intranet, http://intranet/projects/pfpfb/. For assistance, please contact the Human Resources Department. It is important to inform the employee that his or her yearly evaluation is due. The supervisor shall set a meeting date and time with the employee to review the evaluation. This will ensure that everyone has ample time to prepare for the evaluation. It is important to keep in mind that the supervisor should collaborate and seek advice from others in developing the evaluation. Other supervisors, employees, customers, division and department heads may be able to provide important insights into the evaluation process. SELF EVALUATION A self-evaluation is not required by the employee unless requested by the supervisor. A self- evaluation is strongly encouraged since it is an opportunity for an employee to inform the evaluating supervisor of surrounding circumstances or extraordinary efforts that were involved in the completion of the goals. Evaluators will be specifically seeking the employee’s synopsis of the results achieved on his or her planned and unplanned goals. The employee shall be given a copy of a blank evaluation by his or her evaluator so that he or she may prepare a self-evaluation prior to the formal discussion of the evaluation. July 2007 -2-

The employee may also wish to indicate goals they would like to achieve in the next review period. Goals should be related to the overall vision and mission of the City as well as the employee’s department. Professional development opportunities are not considered goals and should not be noted in the goal section of the evaluation. For example, complete an Excel class. JOB DESCRIPTION Obtain the current job description for the employee’s position to be reviewed by the employee and supervisor during the annual budget process. In general this review will occur in December or January each year. The job description shall be reviewed by the employee and the supervisor individually. Reviewing the job description annually will ensure that the job description remains up to date with current job duties. All changes must be submitted to the Human Resources Director for consideration and final approval. If appropriate, the HR Director may recommend the position be re-graded. COMPLETING THE PAY FOR PERFORMANCE EVALUATION FORM Page One The intranet system will automatically complete Page 1 of the evaluation. Please realize that each non-bargaining position has been assigned a weight for goals and objectives and one for core competencies. If you think that the weights need to be changed, please contact the Human Resources Director. If you need assistance, please contact the Human Resources Department. PART 1: Planned Goal and Unplanned Assignment Results This section is to include comment on the degree and qualities of the results achieved and note any extenuating circumstances affecting the results. It should also be noted how well an employee did in accomplishing the objectives and if they were completed in a timely manner. Assign performance points based upon the Performance Rating Definitions and the Key as noted in the Performance Rating tab of the Pay for Performance intranet system. The performance score shall be indicated in the Performance Rating box. Narrative information is very important in the review process; therefore, include remarks and whenever possible, specific examples. It is very important to consider the difficulty of the goals and objectives when scoring. Goals and objectives can have different degrees of difficulty. The completion of a relatively easy goal and objective should not be scored the same as completing a difficult goal and objective. An easily attainable goal that is completed should be rated “good,” a more difficult goal should be rated “commendable,” and achieving a very difficult goal should be “outstanding.” A very difficult goal or objective that may be only partially completed may score the same as an easily attainable goal that is completed. It is very important that the difficulty of the goal and objective not be gauged on the employee’s ability, but on its relative difficulty when compared to goals and objectives assigned to others. After completing the Planned Goals and Objectives section, proceed to the Major Unplanned Assignments contained in Part 1. This section should be completed in the same manner as Planned Goals and Objectives. Major unplanned assignments are assignments which either were July 2007 -3-

not included on the previous year’s evaluation or were added during the quarterly review and were not scheduled for completion throughout the fiscal year and required at least 40 hours to complete. The performance score is determined by dividing the sum of the points by the number of Planned Goals and Unplanned Assignments. The result is then rounded to the nearest tenth. This figure will be automatically calculated once the evaluation is saved. Please refer to page one of the evaluation. PART 2: Core Competency Elements Each employee shall be evaluated on all the core competencies indicated in Part 2 with the exception of categories that pertain to employees who supervise. This category is indicated. The supervisor should review the Performance Rating Definitions on page 2 of the evaluation or contained in the Performance Rating tab of the Pay for Performance intranet system prior to completing this section. Specific examples are to be provided in addition to remarks in the space provided. The examples provided for each competency on the evaluation form should be used as guidelines in developing the narrative in the remarks/example section rather than merely copied. Upon the completion of evaluating all core competencies, save the evaluation. By saving the evaluation the score will automatically be calculated. Once the weighted scores for planned goal and unplanned assignment results and core competencies have been calculated the employee’s overall score will automatically be calculated by the intranet system. This is calculated by adding the two weighted scores together. Overall Comments A detailed narrative is be included in the Overall Comments section (located at the end of Part 2, Core Competencies) of the evaluation. This section should be used for the supervisor to express any comments or concerns that were not addressed previously in the evaluation. PART 3: Major Responsibilities for Next Year List goals and objectives for the coming year that are to be evaluated during the next evaluation. Goals are to be written in the S.M.A.R.T. (Specific, Measurable, Attainable, Realistically high, and Target date) format. These goals are to be discussed with the employee during the formal evaluation process and reviewed quarterly to determine the employee’s progress toward reaching them. For information regarding S.M.A.R.T., please contact the Human Resources Department. PART 4: Employee’s Professional Development Plan Establish a Development Plan listing actions that the employee can take to improve performance for the coming year. This may include suggestions for education and training, reading material, research, job shadowing, counseling and other self-improvement programs. The Development Plan should include specific actions that the employee can take to enhance performance. This July 2007 -4-

section of the evaluation affords the evaluator and the employee an opportunity to collaborate on how the employee’s performance can be improved both as an individual and as a part of a team. This section should be taken very seriously and should be considered one of the most important parts of the evaluation. Submission for Additional Approval Upon completing the evaluation, please electronically “Forward” the evaluation. This function is within the Pay for Performance intranet system. This function indicates to the next approving supervisor/department head that the evaluation has been completed and is ready for their review. The intranet system allows the evaluation to be forwarded as well as “Returned”. The proper chain of command must be followed in order for the evaluation to reach the Human Resources Director for final approval. Throughout the approval process, a supervisor may return the evaluation to the previous level. This process should be continued until the final approval is received from the Human Resources Director. The evaluation is not to be presented to the employee until it has been approved by the Human Resources Director. If the evaluation is presented to the employee before the Human Resources Director approves it, the evaluator may be subject to presenting the evaluation again to the employee. Review with the Employee Once final approval is received from the Human Resources Director, the supervisor shall meet with the employee at the time and date originally scheduled at the beginning of the evaluation process. The supervisor may provide a copy of the evaluation up to two days prior to the meeting for the employee to preview. At this time, the employee may give the supervisor a preview of the self-evaluation. During the review, the individual’s performance, strengths, and developmental needs are to be discussed. Explain the reasons for the review. For example, probationary, annual, special or for another reason. During the review, an open line of communication should be maintained. This is when the employee’s self-evaluation should be compared with the supervisor’s evaluation. The supervisor as well as the employee being evaluated should be open-minded toward comments made. After the formal review with the employee, the supervisor may need to modify the original evaluation to include information the employee presented during the review process. Signatures The employee and the supervisor must sign the evaluation once it has been reviewed together. The employee’s signature does not necessarily indicate agreement with the evaluation. If the employee refuses to sign a performance evaluation, the supervisor must make a notation on the evaluation to indicate that the employee refused to sign the evaluation. The employee and supervisor may attach an addendum. The evaluation shall be presented to the Department Head for review and signature. The Department Head shall then forward the evaluation to the Human Resources Director. July 2007 -5-

Once the evaluation has been finalized, make a copy of the evaluation for the employee. Once the evaluation is submitted to Human Resources, the Human Resources Director will sign the evaluation. Human Resources will then forward to the department a copy of the signature page. The employee shall be informed that the evaluation will be placed in the employee’s personnel file maintained in the Human Resources Department. Evaluations become a permanent record in the employee’s file. July 2007 -6-

APPENDIX 2 This appendix includes the documented (anonymous) views of employees and supervisors who attended workshops in October and December 2008. The views are in response to a series of questions posed to employees who are evaluated under the PFP Evaluation System. Management Advisory Group, Inc. 2009

Consolidation of Views on the Pay for Performance System Employee Meetings Held on October 13, 2008 Strengths:  Online (use year after year, saves time, better than paper)  Standardized (across depts. + non-rep/rep + elected)  Retention Tool (state has none)  Separates Achievers from Underachievers – rewards achievers  Documents poor performers  Focuses on goal attainment  Provides incentives – potentially  Keeps you focused  Motivation  Sparks initiative  Constant feedback and defines expectations  Quantitative analysis (For HR due to scoring)  Morale  Increase productivity  Goals are clear which is good in theory/principle  Opportunity for employee development  Grading + raise linked  Enhances communication between supervisor + manager  Self evaluation good  Keeps employees on track  Grading based upon performance  Self-evaluation  Continuity for goals if done properly  Expectations are set out for you  Contingent upon doing PFP properly  Employee retention (If fair market is done for classification)  Benefits under-market employees  S.M.A.R.T. – attainable goals – eliminates goals that are not attainable  Credit for unplanned assignments  Allows for non scoring (Penalized) for not achieving a goal due to outside circumstances  Tied to pay raise  Adjustable – Unplanned/Removed goals  Standardizes evaluation + grading process  Documents work activity  Flexibility of adding goals throughout year

Weaknesses:  Goals for sake of goals  Lack of understanding by Council  Need recourse for contesting score  Some areas don’t apply to person  Goals + objectives can be redundant  “Above market” employees don’t benefit (topped out)  A lot of approval levels can take months  Supervisor qualifications to be able to evaluate the employee  Paperwork cumbersome and time consuming  Trend toward the middle  Unfair scoring system  Unobtainable scoring  Goals don’t flow down in timely manner  Calculation manipulation  W/Good employees – repetitive  Below market can sometimes reward poor performers  Matrix not consistent each year – changes at budget  Evaluations – a lot less writing for good employees, more for poor ones  Outside influences should be prohibited in evaluations  Can be abandoned without notice  Goals not realistic under daily work load  Positive for new hires and negative for veterans  Too many approval levels (supv  mgr  HR  emp)  Distrust of HR – denial of high scores, lack of communication  No clear means to contest scores  Weak training on standards/standardizing on grading  Council approved without understanding the system  Only as strong as the supervisor that is doing them  Not assigning goals during probation period  Misunderstanding of system  Union employees getting better raises & step increases than PFP  No credit for experience  Cannot count on it – Council can eliminate after goals are met  Too subjective: HR has too much control and every supervisor is different  Unfair to long-time employees, less of an increase.  Core Competency is too wordy/repetitive  Performance goals take precedence over core comp.  Due all at same time  Dept. Heads can delegate goals and not have to meet their own  Budget drives the compensation – not enough difference in actual pay between an “average” + an “outstanding”  “Down-sizing” of actual performance ratings to meet budget constraints

Solutions  Goals should have more weight than objectives  Change weighting scale  Unplanned goals should have more weight than scheduled goals  Hold off goals during probationary period  Different scoring system  Accountability, follow up on findings  Frequent feedback  Specific goals – developed by supervisor + subordinate  should be an “ongoing” process  Reduce HR – cumbersome paperwork  More time to talk with supervisors about goals  Funding – have to fully fund the system  No process for below average  Proper/consistent training for supervisors doing evaluations  Stop hiring people at “below market”  Eliminate decreased “increases” for above market  Council needs to identify goals earlier to incorporate in evaluations  Set matrix + index outside + ahead of budget process  Define council goals in March  Define dept. head goals in April  Develop weight system for goals  Delete below & above market  Better define priorities/weight goals  Don’t require explanations for 3’s + 4’s  Place more authority with Dept. Heads  Evaluate PFP software for user-friendliness  Simplify core competencies  Add flat cost-of-living increase + make PFP an additional %  Council should commit  Base evaluation dates on anniversary  Supervisor raises should not be less than union (good evaluations)  Simplify evaluations – multiple choice questions/answers then give examples. Yes/No – HR would have less to comment on  Revamp electronic form. User friendly  Periodically check goals of other departments that affect your department  Re-evaluate system  Retro Pay for last year’s evaluations  Re-evaluate Job Descriptions/Classifications  Allow more 5’s  Develop a plan to get people to market

Employee Views on the PFP System Training Sessions Conducted December 2008 1. You have been a provided a copy of the PFP policy and instructions. Do you believe the evaluations are being completed in accordance with the Policy and Instructions? If not, what specific policies are not being met? Of the 74 responses to whether the evaluations are being completed in accordance with the Policy and Instructions, 57 people answered “Yes”, while six (6) people answered “No”. Of the remaining respondents, seven (7) people indicated that they had not been evaluated yet as newer employees, while four (4) responses were non-committal. 2. Does your supervisor collaborate with you on developing your goals for the coming year? Do those goals use the SMART criteria (Specific, Measurable, Attainable, Realistically High, Target Date)? Of the 80 responses to this question, 65 people answered “Yes”, while 12 people answered “No”. Three (3) responses were unclear or non-committal. Some of the “No” responses were due to the view that the goals are either very clear or pre-determined, so no collaboration was needed. 3. Do you feel that establishing goals is relevant to your job (if not, could you identify your job title)? Of the 78 responses to this question, 64 people answered “Yes”, while five (5) people answered “No”. Nine (9) of the responses were non-committal or unclear. 4. Is the “core competency” of the evaluation relevant to your job? Of the 78 responses to whether the core competencies are relevant to the employee’s job, 65 people answered “Yes”, while two (2) people answered “No”. Eleven respondents were unsure, non-committal, or indicated “somewhat”. 5. Do you feel your job is weighted appropriately between goals and competency? Of the 72 responses to this question, 41 answered “Yes”, while 19 people answered “No”. Twelve respondents were unclear or uncertain. 6. Do you believe the scoring system is fair? Of the 76 responses to this question, 38 people answered “Yes”, while 22 people answered “No”. Sixteen (16) respondents were either unclear, non- committal, or had not been evaluated yet and had no comment.

7. Is high performance rewarded? Of the 71 responses to this question, only 13 people answered “Yes”, while 43 people answered “No”. Fifteen (15) people were not certain or were non- committal. 8. Are evaluations done consistently across departments? Of the 74 responses, 14 people answered “Yes”, while 14 people answered “No”. Most respondents (46) did not know or could not answer the question. 9. Supervisors: do you feel as though you have enough knowledge of how to use the performance evaluation system? Of the 53 responses to this question, 34 people answered “Yes”, while only three (3) people answered “No”. Sixteen (16) people answered n/a, and other non-supervisory people simply did not answer. 10. Does the system help retain high performing employees? Of the 73 responses to this question, 15 people answered “Yes”, while 39 people answered “No”. Nineteen (19) people answered unsure or don’t know. 11. Are employees generally more goal oriented under this system of evaluation? Why or why not? Of the 77 responses to this question, 44 people answered “Yes, while 17 people answered “No”. Sixteen (16) people were unsure or non committal. 12. Once the evaluation is complete, does the employee receive timely feedback on the results? Why or why not? Of the 70 responses to this question, 41 people answered “Yes”, while 15 people answered “No”. Fourteen (14) people were unsure or non committal. 13. Have you ever appealed an evaluation? If yes, did you feel it was handled adequately? Why or why not? (was it fair?) Of the 73 responses to this question, six (6) people indicated that they have appealed an evaluation, while 62 respondents indicated they had not ever made an appeal. Five (5) people indicated no response or unrelated information. Of the six (6) people who appealed, two (2) indicated a satisfactory response, while three (3) were not satisfied. One (1) appellant did not discuss the outcome.

14. What single action would you recommend to improve the system? As one might imagine, with open ended responses from 75 employees, the answers are highly variable. The responses varied from “get rid of it” to “don’t change anything”. Some recommendations noted several times included:  ensure Council commitment to the program (since it was suspended recently, this has been a matter of concern);  make the evaluations more department specific;  reduce the role of Human Resources to that of process monitoring rather than reviewing or changing scores;  shorten the format, particularly with the redundancies in the core competencies;  require more meetings between supervisors and employees;  make the matrix consistent and do not manipulate;  let department heads decide increases;  let supervisors decide increases; The more frequent employee recommendations focused on making the PFP simpler, limiting the role of HR, shortening the format, and ensuring Council commitment and acceptance.

APPENDIX 3 This appendix includes a sample PFP Evaluation form for Council appointed positions. Management Advisory Group, Inc. 2009

Evaluation Date: Type of Review: CITY OF DOVER PAY-FOR-PERFORMANCE EVALUATIONS COUNCIL APPOINTED POSITIONS Employee: Department: Evaluator 1: Evaluator 2: Evaluator 3: Evaluator 4: Evaluator 5: Date Employed: Evaluation Period Covered: From: To: Date of Next Review: Current Annual Salary: Below Market At Market Above Market Above Maximum Salary Ranges: SCORING TABLE Performance Weighted X Weight = Score Score PART 1 - Planned Goal and Unplanned Assignment X = Results PART 2 - Core Competencies X = OVERALL SCORE (Part 1 + Part 2) Pay for Performance Evaluation 1 of 12 (Printed Jan 22, 2009)

PERFORMANCE RATING DEFINITIONS Outstanding: Performance Points 5 This level of performance represents the achievement of significant and exceptional results. The employee consistently achieved additional, significant results beyond established targets and significantly exceeds position requirements. The employee actively and continuously exhibits initiative and innovation and serves as a model for others. Commendable: Performance Points 4 Demonstrates above-average knowledge, skills, abilities and effort. Performance goes beyond the position requirements and exceeds expected results. Performance measurably exceeds expectations. Employee exhibits initiative and resourcefulness in going beyond expectations of job performance in accomplishing goals and objectives. Good: Performance Points 3 The employee is effective, with good, solid performance as demonstrated by achieving a majority of results and demonstrating most competencies successfully. Job performance is accomplished in an efficient and competent manner. This performance is fully satisfactory and meets acceptable or expected standards for the job. Work efficiency and effectiveness support the overall productivity of the work unit. Employee accomplishes assigned tasks with expected direction and assistance. Acceptable With Some Improvement Needed: Performance Points 2 The employee has met the basic expectations however has not performed the assigned duties in a fully or consistently competent manner thus requiring additional support of others. Inefficiency and/or ineffectiveness affects the productivity of the work unit. Does not consistently demonstrate the required knowledge, skills, abilities and/or effort for this position. Higher level of performance may be possible through increased effort, training and guidance. Performance at this level will be subject to continued careful assessment. Unsatisfactory: Performance Points 1 Minimum standards for the job are not met; job duties are performed at a marginal level or not performed, or must be performed by others. There is minimal contribution to work unit productivity. Employee is unwilling or unable to improve. A need for further improvement is clearly recognized, identified and must occur immediately. Employee requires constant and close supervision. Continued performance at this level, absent any potential or evidence of immediate improvement will lead to progressive discipline up to and including termination. Pay for Performance Evaluation 3 of 12 (Printed Jan 22, 2009)

PART 1: Planned Goals and Unplanned Assignments GOAL/OBJECTIVE: Write clear, concise statements relative to the principal goals/objectives for the position. Establish the relative importance (priority) of each goal/objective. These planned goals and objectives are listed on the most recent evaluation completed for the employee. RESULT ACHIEVED: Comment on the degree and quality of the results achieved and note and extenuating circumstances affecting the results. When performance is "Outstanding," "Needs Improvement" or "Unsatisfactory," specific reasons/examples must be included or attached. PRIORITY: List the major planned goals and unplanned assignments in order of priority, with number one being the highest priority. 1 PLANNED GOAL/OBJECTIVE PRIORITY: Performance Rating (points): RESULT ACHIEVED 2 PLANNED GOAL/OBJECTIVE PRIORITY: Performance Rating (points): RESULT ACHIEVED 3 PLANNED GOAL/OBJECTIVE PRIORITY: Performance Rating (points): RESULT ACHIEVED 4 PLANNED GOAL/OBJECTIVE PRIORITY: Performance Rating (points): RESULT ACHIEVED 5 PLANNED GOAL/OBJECTIVE PRIORITY: Performance Rating (points): RESULT ACHIEVED Pay for Performance Evaluation 4 of 12 (Printed Jan 22, 2009)

ADD UPDATED INFORMATION REGARDING MAJOR UNPLANNED ASSIGNMENTS AS APPROPRIATE THAT OCCURRED DURING THE REVIEW PERIOD THAT WAS NOT CITED ABOVE. ADDITIONAL TASKS ASSIGNED AND RESULT ACHIEVED TITLE Performance Rating (points): RESULT ACHIEVED TITLE Performance Rating (points): RESULT ACHIEVED TITLE Performance Rating (points): RESULT ACHIEVED TITLE Performance Rating (points): RESULT ACHIEVED TITLE Performance Rating (points): RESULT ACHIEVED Pay for Performance Evaluation 5 of 12 (Printed Jan 22, 2009)

PART 2: Core Competency Elements Performance Rating (points): Accountability/Leadership/Work Management Responds to Mayor and Council requests in a timely manner. Adjusts schedule to meet with Council to listen to and address their concerns. Handles Constituent complaints referred by Mayor and City Council in an effective and timely manner. Accepts criticism and feedback from Council. Completes work assignments from City Council within established deadlines and guidelines. Accepts responsibility for actions and results. Accepts responsibility for work assignments and ensures desired results are achieved within established deadlines and guidelines. Reports to work regularly and is on time for work and meetings in accordance with department/personnel policy; schedules appointments at appropriate times. Works effectively under pressure conditions, such as heavy workloads or deadline situations, with productivity remaining consistent. Observes safety rules, reports, and corrects conditions and/or practices in work environment that are or may become unsafe. Inspires and motivates others in addition to leading by example. Remarks/Example Performance Rating (points): Communication and Customer Service Updates Mayor and Council on City actions as appropriate and in a manner that is clearly and easily understood. Ensures that appropriate staff and Council are provided with all relevant information. Demonstrates effective written reports & CAFs to City Council; clearly conveys ideas and information in a written format using proper grammar and punctuation when preparing written reports that are comprehensive, well-organized, clearly written & timely. Attends civic and community meetings, as appropriate, to represent the City to hear concerns of its citizens. Demonstrates effective oral communication skills and conveys ideas and information in a clear and concise manner. Demonstrates effective presentation skills at meetings. Responds promptly and effectively to citizen questions, concerns, and complaints treating each citizens/customers with courtesy and respect under all circumstances. Always maintains a highly professional demeanor. With an open-mind communicates with all staff and customers comments and suggestions. Remarks/Example Performance Rating (points): Job Knowledge Pay for Performance Evaluation 6 of 12 (Printed Jan 22, 2009)

Has knowledge of and complies with applicable City policies, procedures, regulations and Council initiatives. Ability to research and recommend new initiatives requested by City Council. Takes initiative to receive on the job and training and attend appropriate conferences to further development and job knowledge. Possesses, demonstrates and applies the knowledge of relevant laws, rules, regulations and state of the art equipment, when available, within the profession and uses appropriate resources to make knowledgeable decisions. Understands job responsibilities and demonstrates competency. When made available to the employee, employee participates in training programs, takes advantage of other continuing education opportunities, and/or reads professional publications to keep current on techniques or methodologies appropriate to the job. Continuously analyzes current department operations, identifies areas where improvement may be made to better serve the public, reduces City expenses, increases revenue efficiency and implements these improvements where appropriate. Remarks/Example Performance Rating (points): Planning, Organization, Problem Solving and Decision Making Includes appropriate people in decision-making process and keeps Council apprised when appropriate. Sets priorities and meets deadlines for work activities and Council initiatives. Presents Annual Budget to Council in the agreed upon time frame and format along with Finance Director. Allows for flexibility in work activities to meet changing needs for unusual situations and anticipates variations in work flow and plans accordingly for unexpected situations. Ability to devise effective solutions to problems or identify effective measures and procedures for accomplishing objectives. Demonstrates effective decision making skills. Remarks/Example Performance Rating (points): Relationships within the Organization Works cooperatively with Council and other Council appointees. Works cooperatively with fellow employees and other departments in order to accomplish work effectively and efficiently as well as in accomplishing the City's goals and mission. Contributes to good working relationships with fellow employees; involves fellow workers in formulating department objectives and planning work activities as appropriate. Supports the City's goal of valuing diversity within the workforce. Remarks/Example Pay for Performance Evaluation 7 of 12 (Printed Jan 22, 2009)

Performance Rating (points): Supervisory Skills (Not applicable to employees who do not supervise) Understands and explains the City's Strategic Organizational Plan to employees and Council. Communicates and explains performance standards, organizational goals and objectives to subordinates. Provides and evaluates training for personnel to ensure effective and consistent job performance and to instruct personnel in new methods or techniques to be utilized. Provides and evaluates sufficient orientation or training of new personnel. Documents ongoing employee performance, especially in critical areas. Properly manages personnel and resources within Budget guidelines. Is familiar with established personnel policies, procedures and labor agreements, operates in a consistent manner with these and seeks advice of the Human Resources Department and outside Counsel when appropriate. Delegates responsibilities to co-workers as appropriate and establishes a follow-up plan. Actively supports the City's cultural diversity programs and policies. Remarks/Example Pay for Performance Evaluation 8 of 12 (Printed Jan 22, 2009)

OVERALL COMMENTS: A detailed narrative should be included to express any comments or concerns that were not addressed previously in the evaluation. Pay for Performance Evaluation 9 of 12 (Printed Jan 22, 2009)

PART 3: Major Responsibilities for Next Year List goals/objectives for the coming year to be rated during the next evaluation. Goals are to be S.M.A.R.T. (Specific, Measurable, Attainable, Realistically High, Target Date) GOAL/OBJECTIVE PRIORITY: GOAL/OBJECTIVE PRIORITY: GOAL/OBJECTIVE PRIORITY: GOAL/OBJECTIVE PRIORITY: GOAL/OBJECTIVE PRIORITY: Pay for Performance Evaluation 10 of 12 (Printed Jan 22, 2009)

PART 4: Employee's Professional Development Plan Establish a development plan listing goals and objectives with the employee for the coming year. The development plan includes specific actions that the employee can take to enhance performance. The objectives are results the employee will be expected to achieve and are the basis for the next formal performance evaluation. This development plan must accompany the performance evaluation in the employee's personnel file. Pay for Performance Evaluation 11 of 12 (Printed Jan 22, 2009)

SIGNATURES The employee and the evaluator are to sign in the space below after they have reviewed the evaluation. The employee’s signature does not necessarily indicate agreement with the evaluation. Any written comments made by the employee must be attached. Employee: I have had this evaluation explained to me. I agree with this evaluation. I do not agree with this evaluation. I wish to appeal this evaluation. I have attached an addendum to this evaluation. Additional Comments: Signature of Employee Date Evaluator: I have explained this evaluation to the employee and attest that the information contained herein represents my best judgment of the employee’s performance. I have attached an addendum to this evaluation. Signature of Evaluator Date Department Head Date Signature Human Resources Director Date Signature Pay for Performance Evaluation 12 of 12 (Printed Jan 22, 2009)

APPENDIX 4 This appendix includes the PFP Calculation Worksheets used over the past several years. It is provided for historical purposes. Management Advisory Group, Inc. 2009

Budget Summary City of Dover Memorandum Office of the City Manager P.O. Box 475 Dover, DE 19903-0475 Phone: (302) 736-7005 FAX: (302) 736-7002 E-m ail: tdeprima@dover.de.us To: Mayor and City Council From: Anthony J. DePrima, AICP City Manager Date: May 3, 2004 Subject: Pay-for-Performance Salary Approval for Fiscal Year 2005 With the Council’s approval of the City’s first pay for performance plan in Fiscal Year 2004, we submit the following: Market Analysis Memorandum with attachments Pay-for-Performance Salary Calculation Worksheet Revised City of Dover Pay Plans (Grades and Ranges) This is the first market analysis since the City consulted with the Public Administrative Service in 2002. The market analysis was prepared by our Human Resources Director, Frank Szyjka. We plan to perform this analysis on an annual basis. The market analysis recommends an average increase of 3.5 percent for non-bargaining employees based on market movement. Also recommended is an additional 1.0 percent increase to compensate for the difference between this year’s average non-bargaining increase of 2.0 percent for “meeting expectations” verses the FOP settlement of 3.0 percent and the 2.5 percent for the IBEW. According to the market analysis, we have developed the Pay-for-Performance Salary Calculation Worksheet for your approval. The Pay-for-Performance Salary Calculation Worksheet is a matrix which compensates non-bargaining employees based on (1) their evaluated job performance and (2) where their compensation falls in City of Dover pay plan ranges. We have budgeted $174,191 to cover the increases. This budget number is based on estimated scores that we received from department heads. Lastly, the market analysis recommends City of Dover Labor Grades increase by 3.2 percent. We have attached the City of Dover Pay Plans, both current and proposed, for your review. This does not represent an additional increase over the P.F.P. increases. We are eager to move forward with a compensation program that integrates the City’s Strategic Plan, employees’ goals and objectives, and performance. We believe this rewards employees for achieving their goals and objectives and compensates them properly for their performance. 2005 Annual Operating Budget

Budget Summary City of Dover Memorandum TO: Tony DePrima FROM: Frank E. Szyjka DATE: April 28, 2004 SUBJECT: Market Analysis with Recommendation for projected increases and LG movement FY 2004/05 I recommend that the City of Dover Labor Grades increase by 3.2 percent. This recommendation is based on review of various surveys and Government reports. I also recommend that the salary increase for the City of Dover non-bargaining positions should be 3.5 percent based on these same reports and discussions with area municipalities. Unless the City elects to retroactively give non-bargaining employees an additional 1.0 percent increase based on the difference between this year’s average non-bargaining increase of 2.0 percent verses the proposed FOP settlement of 3.0 percent, you will need to consider adding this 1.0 percent to next year’s recommended increase for a total of 4.5 percent. Sources used include the ICMA 2004 Survey and Annual Report on Local Government Executive Salaries and Fringe Benefits which increased the range from 2.7 percent to a high of 3.9 percent with the majority of ranges increasing over 3.4 percent. Specific ICMA reports used include both Northeast Regional Information and the South Region Information by population group (cities ranging from 25,000 – 49,999). In addition, the Bureau of National Affairs Daily Labor Report, which compiles up-to-date information on 2004 bargaining settlements and State and Local Government data, outlined the average increase of 3.4 percent which also supports the recommendation. As an added source of information, I completed a phone survey of local municipalities to find out what their salary increase plans are for the upcoming year. The results indicated increases in midpoint of 2.5 percent to 4.0 percent with at least two of the surveyed employers adding COLA to the planned increases. I have attached the Bureau of National Affairs report and the information gathered from area municipalities. The ICMA reports are a total of 260 pages. If you need a copy of this information, please advise. CONFIDENTIAL 2005 Annual Operating Budget

Budget Summary City of Dover NON-BARGAINING MARKET SURVEY Municipality Percentage Increase/Adjustment Explanation Kent Coun ty 4.0 percent (2 .0 percent COL A plus 2.0 Em ployees receive both a Step increase and percent Step) COLA yearly. City of Newark 3.5 percent Em ployees receive the same as the bargaining unit (will be 4.0 percent in 2005) City of W ilmington 0.0 percent (possible $500 bonus) Non-Bargaining - no increase since 7/00 - no con tracts Ocean City, MD 3.0 percent Midpoint Adjustment Performance-based system em ployees at Minimum 4.0 percent plus Em ployees at Maximum 2.0 percent plus City of Bowie, MD 2.5 percent - 6.5 percent 2.5 percent COLA established by contract neg otiation for three yea rs plus up to 4.0 percent Step Duke Power Anticipate 2.0 percent every six months Sa m e as bargaining unit 2005 Annual Operating Budget

Budget Summary City of Dover DAILY LABOR REPORT, March 18, 2004 Cop yright 2 00 4 T he B ureau of N at ional Affairs, Inc., DAILY LABOR REPORT March 18, 2004, Thursday 52 DLR D-24 (2004) L EN GT H : 722 words S ECT IO N: E CO N OM IC NE W S TITLE: Colle ctive Ba rga inin g: B NA DA TA SH OW AVE RA GE W AG E IN CR EASE O F 3 .4 PER CENT IN FIRST YEAR OF NEW CON TRACTS TEXT: Data compiled by BNA from 2004 bargaining settlements through March 15 showed that the ave rag e first-year wa ge increas e was 3.4 pe rcen t, the sam e increa se reported in th e com parab le period of 2003. The median first-year wage increase from the settlements was 3.1 percent, the same as that reported in the comparable period of 2003, and the weighted average increase was 1.8 percent, comp ared w ith 2.4 percen t a year ea rlier. When construction and state and local government contracts were excluded, the average increase was 3.6 percent, compared with 3.3 percent in 2003; the med ian was 3.1 percent, compared with 3 percent; and the weighted average was 1.5 percent, compared with 1.8 percent in 2003. The manufacturing average increase was 2.6 percent, compared with 1.8 percent in 2003, and the median was 2.5 percent, compared with 2.4 percent. Nonmanufacturing (excluding construction) contracts provided an average increase was 4 percent, compared with 3.9 percent a year earlier, and the m edian was 3.4 percent, compared with 3.5 percent. Con struct ion con tracts showe d an average increa se o f 3.4 percen t, the sam e as that repo rted in 2003, and a median of 3.2 percent, compared with 4.1 percent a year earlier. State and local government agreements provided an average increase of 3.2 percent, compared with 3.5 percent in 2003, and a median of 3 percent, compared with 3 .5 percent. Factoring lump-sum payments into calculations, the all-settlements average first-year wage increase to date in 2004 w as 3.8 percent, compared w ith 3.4 percent in the comparable period of 2003. The median was 3.3 percent, compared with 3.1 percent in 2003, and the weighted average increase wa s 2.4 percent, the sam e increase reported last year. The all-settlements (excluding cons truction and state a nd local governmen t) average increase was 4.1percent, compared with 3.4 percent in 2003; the median was 3.4 percent, compared with 3 percent; and the weighted average was 2.4 percent, compared with 1.8 percent in 2003. Manufacturing settlements with lump sums posted an average increase of 3.6 percent, compared with 2 percent in 2003 , and a median of 3.2 percent, compared with 2 .4 percent. Non man ufacturing (ex cluding construction) contrac ts prov ided an av erag e increa se of 4.3 percen t, com pared with 3.9 pe rcen t, and a m edia n of 3.5 percen t, the sam e increa se repo rted in 20 03 . Th e s ta te an d loca l gov ernmen t a ve rage increa se w as 3.2 pe rcen t, com pared with 3.5 2005 Annual Operating Budget

Budget Summary City of Dover percent in 2003, and the m edian was 3 p ercent, compared with 3.5 percent. Su mm aries of recen t se ttleme nts an d contract s with deferred increas es t ha t too k effect recently follow the tables below. FIRST-YEAR WAGE INCREASES Lump Sums Not Factored Year-to-date 2004 Year-to-date 2003 Wgt. Average Median Wgt. Average Median Avg. Avg. All s et tlem en ts ...... 1.8% 3.4% 3.1% 2.4% 3.4% 3.1% All settlements, excluding construction & sta te a nd local 1.5% 3.6% 3.1% 1.8% 3.3% 3.0% gov ernmen t...... Man ufacturing...... 1.9% 2.6% 2.5% 4.6% 1.8% 2.4% Nonmanufacturing, excluding 1.5% 4.0% 3.4% 1.4% 3.9% 3.5% construction...... Con struction...... 2.9% 3.4% 3.2% 3.4% 3.4% 4.1% Sta te a nd local 2.3% 3.2% 3.0% 3.2% 3.5% 3.5% gov ernmen t...... Lump Sums Factored Year-to-date 2004 Year-to-date 2003 Wgt. Average Median Wgt. Average Median Avg. Avg. All s et tlem en ts ...... 2.4% 3.8% 3.3% 2.4% 3.4% 3.1% All settlements, excluding construction & sta te a nd local 2.4% 4.1% 3.4% 1.8% 3.4% 3.0% gov ernmen t...... Man ufacturing...... 4.2% 3.6% 3.2% 4.6% 2.0% 2.4% Nonmanufacturing, excluding 2.0% 4.3% 3.5% 1.4% 3.9% 3.5% construction...... Con struction...... 2.9% 3.4% 3.2% 3.4% 3.4% 4.1% Sta te a nd local 2.3% 3.2% 3.0% 3.2% 3.5% 3.5% gov ernmen t...... Note: The statistical summary above is subject to revision as more information becomes available. The summary does not include automatic increases effective after 12 months (designated as deferred increases), cost- of-living adjustments, or Canadian settlements. Portions of construction wage increases may be diverted to benefits. 2005 Annual Operating Budget

Budget Summary City of Dover P.F.P. SALARY CALCULATION WORKSHEET (Adopted by City Council on June 28, 2004) OVERALL SCORE ADJUSTMENT Employee Employee Employee Employee at FROM TO Above Above Below M arket Market Market Maximum Unsatisfactory 10 15 0 0 0 0 Needs Improvement 16 25 0 0 0 0 Good 26 35 4.75% 4.50% 4.25% 4.00% Commendable 36 45 5.00% 4.75% 4.50% 4.00% Outstanding 46 50 5.50% 5.00% 4.75% 4.00% 2005 Annual Operating Budget

Budget Summary City of Dover CITY OF DOVER PAY PLANS CURRENT PROPOSED GRADE MINIMUM MARKET MAXIMUM MINIMUM MARKET MAXIMUM 101 $14,065 $16,878 $22,110 $14,515 $17,418 $22,818 102 $14,768 $17,722 $23,216 $15,241 $18,289 $23,959 103 $15,507 $18,608 $24,377 $16,003 $19,203 $25,157 104 $16,282 $19,539 $25,596 $16,803 $20,164 $26,415 105 $17,096 $20,516 $26,875 $17,643 $21,173 $27,735 106 $17,951 $21,541 $28,219 $18,525 $22,230 $29,122 107 $18,849 $22,618 $29,630 $19,452 $23,342 $30,578 108 $19,791 $23,749 $31,112 $20,424 $24,509 $32,108 109 $20,781 $24,937 $32,667 $21,446 $25,735 $33,712 110 $21,820 $26,184 $34,301 $22,518 $27,022 $35,399 111 $22,911 $27,493 $36,016 $23,644 $28,373 $37,169 112 $24,056 $28,867 $37,816 $24,826 $29,791 $39,026 113 $25,259 $30,311 $39,707 $26,067 $31,281 $40,978 114 $26,522 $31,826 $41,692 $27,371 $32,844 $43,026 115 $27,848 $33,418 $43,777 $28,739 $34,487 $45,178 116 $29,240 $35,089 $45,966 $30,176 $36,212 $47,437 117 $30,702 $36,843 $48,264 $31,684 $38,022 $49,808 118 $32,238 $38,685 $50,677 $33,270 $39,923 $52,299 119 $33,849 $40,619 $53,211 $34,932 $41,919 $54,914 120 $35,542 $42,650 $55,872 $36,679 $44,015 $57,660 121 $37,319 $44,783 $58,665 $38,513 $46,216 $60,542 122 $39,185 $47,022 $61,599 $40,439 $48,527 $63,570 123 $41,144 $49,373 $64,679 $42,461 $50,953 $66,749 124 $43,201 $51,842 $67,913 $44,583 $53,501 $70,086 125 $45,361 $54,434 $71,308 $46,813 $56,176 $73,590 126 $47,630 $57,155 $74,874 $49,154 $58,984 $77,270 127 $50,011 $60,013 $78,617 $51,611 $61,933 $81,133 128 $52,512 $63,014 $82,548 $54,192 $65,030 $85,190 129 $55,137 $66,165 $86,676 $56,901 $68,282 $89,450 130 $57,894 $69,473 $91,009 $59,747 $71,696 $93,921 131 $60,789 $72,946 $95,560 $62,734 $75,280 $98,618 132 $63,828 $76,594 $100,338 $65,870 $79,045 $103,549 133 $67,020 $80,424 $105,355 $69,165 $82,998 $108,726 134 $70,371 $84,445 $110,623 $72,623 $87,147 $114,163 135 $73,889 $88,667 $116,154 $76,253 $91,504 $119,871 136 $77,584 $93,100 $121,961 $80,067 $96,079 $125,864 137 $81,463 $97,755 $128,059 $84,070 $100,883 $132,157 2005 Annual Operating Budget

Appendix D - Pay-For-Performance Salary Information City of Dover Memorandum Office of the City Manager P.O. Box 475 Dover, DE 19903-0475 Phone: (302) 736-7005 FAX: (302) 736-7002 E-mail: tdeprima@dover.de.us To: Mayor and City Council From: Anthony J. DePrima, AICP City Manager Date: April 18, 2005 Subject: Pay-for-Performance Salary Approval for Fiscal Year 2006 This is the second market analysis since the City consulted with the Public Administrative Service in 2002. The market analysis was prepared by our Human Resources Director, Frank Szyjka. We plan to perform this analysis on an annual basis. The following are submitted: Market Analysis Memorandum with attachments Pay-for-Performance Salary Calculation Worksheet Revised City of Dover Pay Plans (Grades and Ranges) The market analysis recommends an increase of 3.5 percent for non-bargaining employees based on market movement. According to the market analysis, we have developed the Pay-for-Performance Salary Calculation Worksheet for your approval. For employees who are below market, an additional 3.0 percent increase is recommended to bring the employees within the market ranges. The Pay-for-Performance Salary Calculation Worksheet is a matrix which compensates non-bargaining employees based on (1) their evaluated job performance and (2) where their compensation falls in City of Dover pay plan ranges. We have budgeted $179,057 to cover the increases. This budget number is based on estimated scores that we received from department heads. We are eager to move forward with a compensation program that integrates the City’s Strategic Plan, employees’ goals and objectives, and performance. W e believe this rewards employees for achieving their goals and objectives and compensates them properly for their performance. 2006 Annual Operating Budget 385

Appendix D - Pay-For-Performance Salary Information City of Dover Memorandum To: Tony DePrima From: Frank E. Szyjka Date: February 24, 2005 Re: Recommendation for projected increases and LG movement FY 2005-06 I recommend that the salary market increase for the City of Dover non-bargaining positions and corresponding salary range increase should be 3.5% based on various nationwide and local surveys and Government reports assuming good performance. It is also recommended that non-bargaining employees below market performing at acceptable levels be granted an added differential of 3.0% to achieve the PFP goal of paying non-bargaining employees at market within a maximum seven year period of time assuming good performance. There are four (4) employees in this category. Sources used include the ICMA 2004 Survey and Annual Report on Local Government Executive Salaries and Fringe Benefits which highlighted that the highest increase in average salary from 2003–2004 is for Chief Librarian at 12.9%. The second highest was for Public Works Directors at 10.1%. The range was from 2.7% to a high of over 12.0% with the majority of ranges increasing over 3.4%. Specific ICMA reports used include both Northeast Regional information and the South Regional information by population group (cities ranging from 25,000 – 49,999). In addition, the American Public Power Association (APPA) and the Bureau of National Affairs Daily Labor Report, which compiles up-to-date information on 2004 Bargaining settlements and State and Local Government data, outlined the average increase of 3.5% which also supports the recommendation. As an added source of information, I completed a phone survey of local municipalities to find out what their salary increase plans are for the upcoming year, and the results indicated increases in midpoint of 2.5% to 4% and, as mentioned last year, at least two of the surveyed employers adding COLA to the planned increases. Additional surveys used that support the recommendation include a Delaware Governmental Compensation Survey for Local Governments conducted by the University of Delaware and a City of Salisbury and Wicomico County Compensation Survey. I have attached the local market survey results from area municipalities. The Bureau of National Affairs report, ICMA, APPA, Delaware Government, and Salisbury surveys are available upon request. 386 2006 Annual Operating Budget

Appendix D - Pay-For-Performance Salary Information City of Dover NON-BARGAINING MARKET SURVEY FEBRUARY 20, 2005 Municipality Percentage Increase/Adjustment Explanation Kent County 4.0 percent (2.0 percent COLA plus 2.0 Employees receive both a Step increase percent Step) and COLA yearly. City of Newark 3.5 percent Employees receive the same as the bargaining unit (will be 4.0 percent in 2005) City of Wilmington 2.0 percent Employees receive the same as the bargaining unit – 2.0 percent each year retroactive to 2000 through 2007. Ocean City, MD 3.0 percent Midpoint Adjustment Performance-based system employees at Minimum 4.0 percent plus Employees at Maximum 2.0 percent plus City of Bowie, MD 2.5 percent - 6.5 percent 2.5 percent COLA established by contract negotiations for three years plus up to 4.0 percent Step Duke Power Anticipates 2.0 percent every six Same as bargaining unit plus additional months discretionary 2006 Annual Operating Budget 387

Appendix D - Pay-For-Performance Salary Information City of Dover P.F.P. SALARY CALCULATION WORKSHEET (Adopted by City Council on June 27, 2005.) OVERALL SCORE ADJUSTMENT Employee Employee Employee Employee From To Below At Above Above Market Market Market Maximum Unsatisfactory 10 15 0 0 0 0 Needs Improvement 16 25 0 0 0 0 Good 26 35 6.50% 3.50% 3.00% 2.50% Commendable 36 45 7.00% 4.00% 3.50% 3.00% Outstanding 46 50 7.50% 4.50% 4.00% 3.50% Note: Currently there are 25 non-bargaining employees below market, 32 in the market range, and 20 in the above market range. Only one non-bargaining employee is above maximum. 388 2006 Annual Operating Budget

Appendix D - Pay-For-Performance Salary Information City of Dover CITY OF DOVER PAY PLANS There is an increase of 3.5 percent from CURRENT to PROPOSED. CURRENT PROPOSED GRADE Below Market At Market Above Market Below Market At Market Above Market 101 $14,515 $17,418 $22,818 $15,023 $18,028 $23,616 102 $15,241 $18,289 $23,959 $15,774 $18,929 $24,797 103 $16,003 $19,203 $25,157 $16,563 $19,876 $26,038 104 $16,803 $20,164 $26,415 $17,391 $20,870 $27,340 105 $17,643 $21,173 $27,735 $18,261 $21,914 $28,706 106 $18,525 $22,230 $29,122 $19,174 $23,008 $30,141 107 $19,452 $23,342 $30,578 $20,133 $24,159 $31,648 108 $20,424 $24,509 $32,108 $21,139 $25,367 $33,231 109 $21,446 $25,735 $33,712 $22,197 $26,636 $34,892 110 $22,518 $27,022 $35,399 $23,306 $27,968 $36,638 111 $23,644 $28,373 $37,169 $24,472 $29,366 $38,469 112 $24,826 $29,791 $39,026 $25,695 $30,833 $40,392 113 $26,067 $31,281 $40,978 $26,980 $32,376 $42,412 114 $27,371 $32,844 $43,026 $28,329 $33,994 $44,532 115 $28,739 $34,487 $45,178 $29,745 $35,694 $46,759 116 $30,176 $36,212 $47,437 $31,232 $37,479 $49,097 117 $31,684 $38,022 $49,808 $32,793 $39,353 $51,552 118 $33,270 $39,923 $52,299 $34,434 $41,320 $54,129 119 $34,932 $41,919 $54,914 $36,155 $43,386 $56,836 120 $36,679 $44,015 $57,660 $37,963 $45,555 $59,678 121 $38,513 $46,216 $60,542 $39,861 $47,834 $62,661 122 $40,439 $48,527 $63,570 $41,854 $50,225 $65,795 123 $42,461 $50,953 $66,749 $43,947 $52,736 $69,085 124 $44,583 $53,501 $70,086 $46,144 $55,373 $72,539 125 $46,813 $56,176 $73,590 $48,451 $58,142 $76,166 126 $49,154 $58,984 $77,270 $50,875 $61,048 $79,974 127 $51,611 $61,933 $81,133 $53,418 $64,101 $83,972 128 $54,192 $65,030 $85,190 $56,089 $67,307 $88,171 129 $56,901 $68,282 $89,450 $58,893 $70,672 $92,580 130 $59,747 $71,696 $93,921 $61,838 $74,206 $97,209 131 $62,734 $75,280 $98,618 $64,930 $77,915 $102,070 132 $65,870 $79,045 $103,549 $68,176 $81,812 $107,173 133 $69,165 $82,998 $108,726 $71,585 $85,902 $112,532 134 $72,623 $87,147 $114,163 $75,165 $90,197 $118,159 135 $76,253 $91,504 $119,871 $78,922 $94,707 $124,066 136 $80,067 $96,079 $125,864 $82,869 $99,442 $130,269 137 $84,070 $100,883 $132,157 $87,012 $104,414 $136,782 2006 Annual Operating Budget 389

Pay-For-Performance Salary Information City of Dover NON-BARGAINING SALARY, PROMOTIONS, AND STAFF ADDITION RECOMMENDATIONS 1. Market Increase Recommendations The recommendation is that the Non-Bargaining salary pay grades be increased 3.0 percent based on movement in the labor market. This would also mean that an employee whose salary is within the market range and whose performance is good would received a 3.0 percent increase in salary. In making these recommendations, I considered the following survey of increases planned in the market: City of Newark 3.0% Kent County 3.0% COLA plus 2.0% step City of Wilmington 2.0% State of Delaware 1.0% or $500 (Governor’s Budgets – Legislators indicate more is likely) New Castle County 3.1% Ocean City, MD 3.0% (plus additional five percent based on market study) BNA Labor Report 3.2% - (first year settled increases YTD) BNA Labor Report 2.9% - (first year settled local and state government YTD) Table I on the following page shows the revised pay grades based on a 3.0 percent increase. 2007 Annual Operating Budget 109

Pay-For-Performance Salary Information City of Dover Table I City of Dover Pay Plans There is an increase of 3.0 percent from CURRENT to PROPOSED CURRENT PROPOSED Grade Below Market At Market Above Market Below Market At Market Above Market 101 15,023 17,888 20,754 15,474 18,425 21,376 102 15,774 18,783 21,792 16,247 19,346 22,445 103 16,563 19,722 22,881 17,060 20,314 23,568 104 17,391 20,708 24,025 17,913 21,330 24,746 105 18,261 21,743 25,226 18,808 22,396 25,983 106 19,174 22,831 26,487 19,749 23,516 27,282 107 20,133 23,972 27,812 20,737 24,692 28,646 108 21,139 25,171 29,203 21,773 25,926 30,079 109 22,197 26,429 30,662 22,862 27,222 31,582 110 23,306 27,751 32,196 24,006 28,584 33,162 111 24,472 29,139 33,806 25,206 30,013 34,820 112 25,695 30,595 35,495 26,466 31,513 36,560 113 26,980 32,125 37,270 27,789 33,088 38,388 114 28,329 33,731 39,133 29,179 34,743 40,307 115 29,745 35,417 41,090 30,637 36,480 42,322 116 31,232 37,188 43,144 32,169 38,304 44,438 117 32,793 39,047 45,301 33,777 40,219 46,660 118 34,434 41,000 47,566 35,467 42,230 48,993 119 36,155 43,049 49,944 37,239 44,341 51,442 120 37,963 45,202 52,442 39,102 46,558 54,015 121 39,861 47,462 55,063 41,057 48,886 56,715 122 41,854 49,836 57,817 43,110 51,331 59,551 123 43,947 52,327 60,708 45,265 53,897 62,529 124 46,144 54,943 63,743 47,528 56,592 65,655 125 48,451 57,690 66,929 49,905 59,421 68,937 126 50,875 60,576 70,276 52,401 62,393 72,385 127 53,418 63,604 73,790 55,020 65,512 76,003 128 56,089 66,784 77,479 57,772 68,788 79,803 129 58,893 70,123 81,353 60,660 72,227 83,794 130 61,838 73,629 85,420 63,693 75,838 87,983 131 64,930 77,311 89,692 66,878 79,630 92,382 132 68,176 81,176 94,176 70,221 83,611 97,001 133 71,585 85,235 98,885 73,733 87,792 101,851 134 75,165 89,497 103,829 77,420 92,182 106,944 135 78,922 93,971 109,020 81,290 96,790 112,291 136 82,869 98,670 114,471 85,355 101,630 117,905 137 87,012 103,603 120,194 89,623 106,711 123,800 110 2007 Annual Operating Budget

Pay-For-Performance Salary Information City of Dover 2. Pay-For-Performance Below Market Increases Our Pay-For-Performance policy includes an additional increase for employees whose salary is below market range. The policy is to have an employee who starts at the entry level and who receives a GOOD evaluation move to market level in within seven years. This works out to a 2.7 percent additional increase above the market increase which is 3.0 percent as proposed above. There are 23 employees currently below market. This year for illustration, a table (Table II) showing the Department Heads, Managers, and Supervisors is being provided which shows current salary, market status, market range, and the salary increases proposed assuming a score in the “good performance range.” Table II Management Salary Increases Proposed for Fiscal Year 2007 Market Percent Title Salary Market Range Status Increase* City Manager 100,099 Below 103,603 120,193 5.7% Chief of Police 95,110 Market 89,497 103,828 3.0% Public Services Manager ** 93,268 Market 89,497 103,828 0.0% Utility Services Manager ** 93,268 Market 89,497 103,828 0.0% Finance Director/Treasurer 88,154 Market 77,311 89,691 3.0% Police Major 86,072 Above 70,123 81,352 2.5% Information Technology Director 82,174 Market 81,176 94,175 3.0% Senior City Administrator 80,454 Market 73,629 85,419 3.0% Central Services Director 76,537 Below 81,176 94,175 5.7% Inspections Director/Planner ** 73,000 Below 77,311 89,691 0.0% Line Crew Superintendent 72,244 Above 57,690 66,928 2.5% Parks and Recreation Director 68,089 Market 66,784 77,478 3.0% Human Resources Director 66,510 Below 73,629 85,419 5.7% Assistant Finance Director 63,900 Market 63,604 73,789 3.0% Assistant City Engineer 62,100 Below 63,604 73,789 5.7% Superintendent of Grounds 61,261 Above 49,836 57,816 2.5% Engineering Services and System Ops Supervisor 61,224 Market 57,690 66,928 3.0% Assistant City Engineer 59,046 Below 63,604 73,789 5.7% Library Director 56,881 Market 54,943 63,742 3.0% Public Works Operation Manager 56,152 Below 60,576 70,275 5.7% Police Resources Manager 55,346 Below 57,690 66,928 5.7% City Assessor ** 55,000 Market 52,327 60,707 0.0% City Clerk 54,532 Market 52,327 60,707 3.0% Customer Services Manager 49,901 Below 52,327 60,707 5.7% Purchaser *** 49,574 Market 45,202 52,441 3.0% Community Development Manager 44,624 Below 45,202 52,441 5.7% * Assuming a GOOD performance evaluation; actual increase may vary +/- two percent based on actual performance evaluation score. ** New hires or promotions that do not qualify for increases at this time *** Reclassification also recommended for this position. See the Promotion/Reclassification table. 2007 Annual Operating Budget 111

Pay-For-Performance Salary Information City of Dover Performance Scores The Pay-For-Performance policy uses a 0-50 weighted scoring system. This year’s performance spread (shown in Table II) uses a 0.75 percent pay increase differential between performance grades except for employees who are paid above the maximum of their grade where a 0.50 percent is used. This year the score ranges have been changed to encourage a more normal bell curve where more employees’ scores are disbursed into both the higher range and the lower range and less concentrated in the two middle ranges. Table III Performance Scores PFP SCORE ADJUSTMENT Employee Employee Employee Employee From To Above Above Below At Market Maximum Market Market Unsatisfactory 0 19 0 0 0 0 Acceptable but Some 20 29 0 1.50% 2.25% 3.00% Improvement Needed Good 30 35 1.50% 2.25% 3.00% 5.70% Commendable 36 41 3.00% 3.00% 3.75% 6.45% Outstanding 42 50 3.50% 3.75% 4.50% 7.20% Note: Currently there are 23 non-bargaining employees below market, 41 at market, and 16 in above market. Only two non-bargaining employees are above maximum. 3. Proposed Promotions and Grade Recommendations This year the City of Dover contracted with LaFlamme & Associates, Inc. who conducted a survey of area local government ranges to determine if our salary ranges and job titles are properly aligned. Also used to assist in this effort was data from similar studies done by Kent County, 2005 ICMA, 2005 Survey of Executive Salaries, 2005 Delaware Compensation Survey of Local and State Governments, and a few other sources. Based on these comparisons, no recommendations were made to move any job titles either up or down pay grades. During the budget process, two requests to promote employees were received. The two promotions were supported and are included in the budget. One was to promote the Purchaser to Purchasing and Material Manager which is the work actually performed. The other promotion was to promote a Clerk Typist II to an Administrative Assistant, again based on actual job performance. Also during the budget process, four requests to re-evaluate and reclassify positions were received. Out of these four, only one was supported by the Human Resource Department’s analysis and that is to reclassify the Records Management Coordinator from a Labor Grade 108 to a Grade 110. 112 2007 Annual Operating Budget

Pay-For-Performance Salary Information City of Dover 4. New Positions Recommendations Amount Department Position Justification Budgeted Police Police Officer This completes the Quality of Life Task Force. $51,723 Customer Account Because of rapid growth and additional responsibilities, there is $48,575 Services Clerk I not sufficient staff. Customers find themselves waiting in longer lines. We are also finding errors in metering, billing, and customer payments. These errors are becoming customer issues as well as revenue issues. We cannot maintain the quality of our services to customers without additional staff. Customer Account There is currently no backup for the Billing Clerk except the $61,083 Services Clerk III Customer Services Manager. There is no routine monitoring of our large customer accounts. We have experienced billing issues because mistakes are not detected for long periods of time. These errors are becoming customer issues as well as revenue issues. We currently do not have backup in our Collections area. We do not have a dedicated person to monitor the collections of taxes. Because of rapid growth and additional responsibilities, we cannot pull staff from other areas as we have in the past. Human HR Clerk The Human Resources Department will be assuming all risk $27,402 Resources management, vehicle/equipment insurance, and registration of all vehicle and equipment purchases for the City of Dover from the City Clerk's Office by June 2007. The Human Resources Department currently has a part-time employee. This position would be eliminated. Public Utilities/ Meter Tech I There is increased workload from the meter reading change- $48,048 Electric T & D out program and with anticipation of increased workload due to several large new developments including the privatization of the Dover Air Force Base housing and Eden Hill Farms. Tax Assessor Administrative There is currently no one to handle day-to-day management of $58,213 Assistant the office so that existing staff can work in the field. Until this position is filled, the office will not be able to provide an acceptable level of customer service. 2007 Annual Operating Budget 113

PAY-FOR- PERFORMANCE THE FOLLOWING SUBSECTIONS ARE INCLUDED: NON-BARGAINING SALARY, PROMOTIONS, AND STAFF ADDITION RECOMMENDATIONS MANAGEMENT SALARY INCREASES

Pay-For-Performance Salary Information City of Dover NON-BARGAINING SALARY, PROMOTIONS, AND STAFF ADDITION RECOMMENDATIONS 1. Market Increase Recommendations The recommendation is that the Non-Bargaining salary pay grades be increased 3.5 percent based on movement in the labor market. This would also mean that an employee whose salary is within the market range and whose performance is good would receive a 3.5 percent increase in salary. In making these recommendations, I considered the following survey of increases planned in the market: Institute for Public Administration (IPA) 2006 Compensation Survey - Conducted by the University of Delaware. This survey covers eight State Governments and thirteen local Governments in the Mid-Atlantic region. The survey highlights that the mean local government increase was 3.7 percent and the State Government increase was 3.3 percent. The Bureau of Labor Statistics (BLS) - Calculates the wages and salary component of the Employment Cost Index (ECI) increased 3.7 percent nationally which is the same as the increase outlined by the IPA for Local governments. The ICMA 2006 Survey and Annual Report - Annual report on Local Government Executive Salaries and Fringe Benefits with the majority of ranges increasing over 3.4 percent. The BNA Labor Report - Average wage increase reported in 2006 was 3.3 percent. . The FOP Bargaining Unit - Increase for Fiscal Year 2007 is 3.5 percent. Table 1 on the following page shows the revised pay grades based on a 3.5 percent increase. 2008 Draft Annual Operating Budget 119

Pay-For-Performance Salary Information City of Dover Table I City of Dover Pay Plans There is an increase of 3.5 percent from CURRENT to PROPOSED CURRENT PROPOSED Grade Below Market At Market Above Market Below Market At Market Above Market 101 15,474 18,425 21,376 16,016 19,070 22,124 102 16,247 19,346 22,445 16,816 20,023 23,231 103 17,060 20,314 23,568 17,657 21,025 24,393 104 17,913 21,330 24,746 18,540 22,077 25,612 105 18,808 22,396 25,983 19,466 23,180 26,892 106 19,749 23,516 27,282 20,440 24,339 28,237 107 20,737 24,692 28,646 21,463 25,556 29,649 108 21,773 25,926 30,079 22,535 26,833 31,132 109 22,862 27,222 31,582 23,662 28,175 32,687 110 24,006 28,584 33,162 24,846 29,584 34,323 111 25,206 30,013 34,820 26,088 31,063 36,039 112 26,466 31,513 36,560 27,392 32,616 37,840 113 27,789 33,088 38,388 28,762 34,246 39,732 114 29,179 34,743 40,307 30,200 35,959 41,718 115 30,637 36,480 42,322 31,709 37,757 43,803 116 32,169 38,304 44,438 33,295 39,645 45,993 117 33,777 40,219 46,660 34,959 41,627 48,293 118 35,467 42,230 48,993 36,708 43,708 50,708 119 37,239 44,341 51,442 38,542 45,893 53,242 120 39,102 46,558 54,015 40,471 48,188 55,906 121 41,057 48,886 56,715 42,494 50,597 58,700 122 43,110 51,331 59,551 44,619 53,128 61,635 123 45,265 53,897 62,529 46,849 55,783 64,718 124 47,528 56,592 65,655 49,191 58,573 67,953 125 49,905 59,421 68,937 51,652 61,501 71,350 126 52,401 62,393 72,385 54,235 64,577 74,918 127 55,020 65,512 76,003 56,946 67,805 78,663 128 57,772 68,788 79,803 59,794 71,196 82,596 129 60,660 72,227 83,794 62,783 74,755 86,727 130 63,693 75,838 87,983 65,922 78,492 91,062 131 66,878 79,630 92,382 69,219 82,417 95,615 132 70,221 83,611 97,001 72,679 86,537 100,396 133 73,733 87,792 101,851 76,314 90,865 105,416 134 77,420 92,182 106,944 80,130 95,408 110,687 135 81,290 96,790 112,291 84,135 100,178 116,221 136 85,355 101,630 117,905 88,342 105,187 122,032 137 89,623 106,711 123,800 92,760 110,446 128,133 120 2008 Draft Annual Operating Budget

Pay-For-Performance Salary Information City of Dover 2. Pay-For-Performance Below Market Increases Our Pay-For-Performance policy includes an additional increase for employees whose salary is below market range. The policy is to have an employee who starts at the entry level and who receives a GOOD evaluation move to market level within seven years. This works out to a 2.7 percent additional increase above the market increase which is 3.5 percent as proposed above. There are 28 employees currently below market. This year for illustration, a table (Table II) showing the Department Heads, Managers, and Supervisors is being provided which shows current salary, market status, market range, and the salary increases proposed assuming a score in the “good performance range.” TABLE II Management Salary Increases Proposed for Fiscal Year 2008 Title Salary Market Status Market Range City Manager 106,555 Below 106,711 123,798 6.20% Chief of Police 99,390 Market 92,183 106,944 3.50% Public Services Manager 93,268 Market 92,183 106,944 3.50% Public Utilities Manager 100,000 Market 92,183 106944 3.50% Finance Director/Treasurer 91,460 Market 79,631 92,382 3.50% Police Major 88,654 Above 72,227 83,792 2.75% Information Technology Director 85,256 Market 83,611 96,999 3.50% Senior City Administrator 83,471 Market 75,838 87,981 3.50% Central Services Director 81,300 Below 83,611 96,999 6.20% Inspections Director/Planner 77,709 Below 79,631 92,382 6.20% Line Crew Superintendent 74,411 Above 59,422 68,937 2.75% Parks and Recreation Director 70,643 Market 68,788 79,802 3.50% Human Resources Director 70,301 Below 75,838 87,981 6.20% Assistant Finance Director open 67,572 80,121 Water/Wastewater Manager 74,865 Below 75,838 87,981 6.20% Superintendent of Grounds 63,511 Above 51,331 59,550 2.75% Engineering Services and System Ops Supervisor 69,872 Above 59,422 68,937 2.75% Library Director open 56,592 65,654 Public Works Operation Manager 59,353 Below 62,393 72,383 6.20% Police Resources Manager 58,916 Below 59,422 68,937 6.20% City Assessor 55,000 Market 53,897 62,527 3.50% City Clerk 54,532 Market 53,897 62,527 3.50% Customer Services Manager 53,494 Below 53,897 62,527 6.20% Contract and Procurement Manager 56,029 Market 53,897 62,527 3.50% Financial Reporting and Accounting Manager 58,600 Below 59,422 68,937 6.20% Meter Crew Leader 57,927 Above 44,342 51,442 2.75% Construction Manager 58,794 Market 51,331 59,550 3.50% Construction Manager 59,509 Market 51,331 59,550 3.50% Chief Building Inspector 51,368 Market 48,886 56,713 3.50% Relay Crew Leader open 44,342 51,442 Water Production Supervisor 51,916 Market 46,559 54,014 3.50% * Assuming a GOOD performance evaluation; actual increase may vary +/- two percent based on actual performance evaluation score. ** New hires or promotions that do not qualify for increases at this time *** Reclassification also recommended for this position. See the Promotion/Reclassification table. 2008 Draft Annual Operating Budget 121

Pay-For-Performance Salary Information City of Dover Performance Scores The Pay-For-Performance policy uses a 0-50 weighted scoring system. This year’s performance spread (shown in Table II) uses a 0.75 percent pay increase differential between performance grades except for employees who are paid above the maximum of their grade where a 0.50 percent is used. The score ranges encourage a more normal bell curve where more employees’ scores are disbursed into both the higher range and the lower range and less concentrated in the two middle ranges. Performance Scores PFP Score ADJUSTMENT Employee Employee Employee From To Above Market At Market Below Market 0 19 0 0 0 20 29 2.00% 2.50% 3.00% 30 35 2.50% 3.25% 4.25% 36 41 3.25% 4.00% 6.00% 42 50 4.00% 4.75% 6.50% Note: Currently there are 28 non-bargaining employees below market, 40 at market, and 15 in above market. Only two non-bargaining employees are above maximum. 3. Proposed Promotions and Grade Recommendations During the budget process, four requests to promote employees were received. Each of these involves creating a new title to better reflect their actual or proposed responsibilities and appropriate adjustment in salary. The Planning division is reclassifying the Senior Planner to Principal Planner ($12,175). The Information Technologies Department is promoting a LAN Analyst to Senior LAN Analyst ($7,047). The Central Services Division is reclassifying the Secretary II to an Administrative Assistant position ($22,2,070). The Electric Department is requesting than an Administrative Assistant be promoted to a new position of Department Budget and Staff Supervisor ($640). These positions are promoted based on actual duties being performed and to improve operating efficiencies. 122 2008 Draft Annual Operating Budget

Pay-For-Performance Salary Information City of Dover 4. New Positions Recommendations Amount Department Position Justification Budgeted Tax Assessor Residential This position will provide staffing to support reassessment and re- $42,830 Assessment evaluation efforts in the Tax Office. Technician Tax Assessor Commercial This position will provide staffing to support reassessment and re- $61,564 Assessment evaluation efforts in the Tax Office. Technician Planning and Inspector Property Maintenance Inspector to increase the number of $45,341 Inspections inspectors on the community enhancement team. Position will be funded with proposed increases in related inspection fees and will not be filled until the new fees are approved. Recreation Center This position is requested to staff the John W. Pitts Recreation $33,035 Coordinator Center. This position will be responsible for the operation of the building and the staff for this facility. The Coordinator will supervise two part-time service center clerks and two part-time building supervisors that will be needed to operate the center. Information LAN Technician This position is requested to support the additional work load and $48,756 Technologies to improve service. In the last six months IT has taken on the responsibility of the City’s new telephone system. Also the number of PCs in the City has increased 40% from 153 (2001) to 218 (2007). This position will assist with support at the Police Department. Facilities Custodian This position is requested to staff the John W. Pitts Recreation $24,579 Management Center. It will also be used throughout the City buildings as needed. Public Utilities Civil Engineer I This engineer will provide much needed support to deal with water $79,396 Water/Wastewater quality concerns, inflow/infiltration problems and other issues Engineering & associated with aging infrastructure. Inspections Public Utilities GIS This position will allow the Water and Wastewater utilities to move $39,818 Water/Wastewater Technician forward with its GIS program to improve data collection and Engineering & management methods, as well as, enhance mapping efforts and Inspections system tracking. Currently the program is on hold because it was supported by Engineers who are no longer able to support the function due to more critical duties. Public Utilities Inspector This position is requested to meet current work load. Increased $50,593 Water/ construction volume has pushed the waiting time for requests from Wastewater 24 hours to 72 hours. Construction Public Utilities Water Service Currently there is only one service worker to accomplish all service $41,714 Water/ Worker work orders; including installing radio read meters and conducting Wastewater hydrant flow testing. The department is falling behind in radio read Divisions replacement and hydrant testing due to the Brown Water Project. The addition of a second permanent full-time person will assist in the bringing these programs up to date. Public Utilities Operator This position is requested to ensure the effective implementation of $43,104 Water/ unidirectional flushing of the City’s water system as a part of the Wastewater Brown Water Project. This flushing is critical to resolving the City’s Water Treatment water quality issues. Public Services Emergency Necessary to manage the City’s emergency preparedness $67,089 Administration Preparedness functions and to maintain compliance with State and Federal Staff Guidelines, so eligibility for grant revenues is maintained. Police Department Sex Crimes Unit This new unit will take over all sex offender management $35,000 responsibilities and allow the Community Policing Unit to attend to community concerns and various programs. In addition, the SCU will become intimately familiar with all of the sex offenders that reside, work or study in the City. In the past few years the number of sex offender notifications has increased dramatically. This increase is due to more stringent laws and the Dover Police Department taking on a more active role in sex offender management. The department verifies sex offenders addresses annually for Tier I offenders, semi-annually for Tier II offenders and quarterly for Tier III (most severe) sex offenders. 2008 Draft Annual Operating Budget 123

Pay­For­Performance Salary Information City of Dover NON­BARGAINING SALARY, PROMOTIONS, AND STAFF ADDITION RECOMMENDATIONS 1. Market Increase Recommendations for Non‐Bargaining Employees The recommendation is that the Non‐Bargaining salary pay grades be increased 3.25 percent based on movement in the labor market. This would mean that an employee whose salary is within the market range and whose performance is good would receive a 3.25 percent increase in salary. In making this recommendation, the following surveys of increases planned in the market were considered: The Bureau of Labor Statistics (BLS) ‐ Calculates the wages and salary component of the Employment Cost Index (ECI) increased 3.5% nationally. The ICMA 2007 Survey and Annual Report ‐ Annual report on Local Government Executive Salaries and Fringe Benefits with the majority of ranges increasing 1.77 percent. This is based upon the salaries for selected positions in the Mid‐Atlantic and South‐Atlantic regions. The BNA Labor Report ‐ Average wage increase reported in 2007 was 3.3 percent. The FOP Bargaining Unit ‐ Increase for FY 2009 is 4 percent. The IUE‐CWA Bargaining Unit – Increase for FY 2009 is 3.5 percent. The IBEW Bargaining Unit – Increase for FY 2009 is 3.5 percent. Table 1 on the following page shows the revised pay grades based on a 3.25 percent increase. 2009 Draft Operating Budget 159

Pay­For­Performance Salary Information City of Dover Table I City of Dover Pay Plans There is an increase of 3.25 percent from CURRENT to PROPOSED CURRENT PROPOSED Grade Below Market At Market Above Market Below Market At Market Above Market 101 16,016 19,070 22,124 16,537 19,690 22,843 102 16,816 20,023 23,231 17,363 20,674 23,986 103 17,657 21,025 24,393 18,231 21,708 25,186 104 18,540 22,077 25,612 19,143 22,795 26,444 105 19,466 23,180 26,892 20,099 23,933 27,766 106 20,440 24,339 28,237 21,104 25,130 29,155 107 21,463 25,556 29,649 22,161 26,387 30,613 108 22,535 26,833 31,132 23,267 27,705 32,144 109 23,662 28,175 32,687 24,431 29,091 33,749 110 24,846 29,584 34,323 25,653 30,545 35,438 111 26,088 31,063 36,039 26,936 32,073 37,210 112 27,392 32,616 37,840 28,282 33,676 39,070 113 28,762 34,246 39,732 29,697 35,359 41,023 114 30,200 35,959 41,718 31,182 37,128 43,074 115 31,709 37,757 43,803 32,740 38,984 45,227 116 33,295 39,645 45,993 34,377 40,933 47,488 117 34,959 41,627 48,293 36,095 42,980 49,863 118 36,708 43,708 50,708 37,901 45,129 52,356 119 38,542 45,893 53,242 39,795 47,385 54,972 120 40,471 48,188 55,906 41,786 49,754 57,723 121 42,494 50,597 58,700 43,875 52,241 60,608 122 44,619 53,128 61,635 46,069 54,855 63,638 123 46,849 55,783 64,718 48,372 57,596 66,821 124 49,191 58,573 67,953 50,790 60,477 70,161 125 51,652 61,501 71,350 53,331 63,500 73,669 126 54,235 64,577 74,918 55,998 66,676 77,353 127 56,949 67,805 78,663 58,800 70,009 81,220 128 59,794 71,196 82,596 61,737 73,510 85,280 129 62,783 74,755 86,727 64,823 77,185 89,546 130 65,922 78,492 91,062 68,064 81,043 94,022 131 69,219 82,417 95,615 71,469 85,096 98,722 132 72,679 86,537 100,396 75,041 89,349 103,659 133 76,314 90,865 105,416 78,794 93,818 108,842 134 80,130 95,408 110,687 82,734 98,509 114,284 135 84,135 100,178 116,221 86,869 103,434 119,998 136 88,342 105,187 122,032 91,213 108,606 125,998 160 2009 Draft Operating Budget

Pay­For­Performance Salary Information City of Dover 2. Pay‐For‐Performance Below Market Increases Our Pay‐For‐Performance policy includes an additional increase for employees whose salary is below market range. The policy is to have an employee who starts at the entry level and who receives a GOOD evaluation move to market level in within seven years. This works out to a 2.7 percent additional increase above the market increase which is 3.25 percent as proposed above. There are 26 employees currently below market. This year for illustration, a table (Table II) showing the Department Heads, Managers, and Supervisors is being provided which shows current salary, market status, market range, and the salary increases proposed assuming a score in the “good performance range.” TABLE II Management Salary Increases Proposed for Fiscal Year 2009 Title Salary Market Status Market Range FY 08 *Percent Rates Increase Meter Crew Leader 59,810 Above 45,783 53,114 2.50% Substation Relay Foreman 55,000 Above 45,783 53,114 2.50% ***Water Production Supervisor 53,992 Market 48,072 55,769 3.25% Water/Wastewater Manager 49,672 Market 48,072 55,769 3.25% Chief Building Inspector open - 50,475 58,556 - Superintendent of Grounds 65,535 Above 52,999 61,485 2.50% Construction Manager 62,336 Above 52,999 61,485 2.50% City Assessor open - 55,649 64,559 - City Clerk 59,693 Market 55,649 64,559 3.25% Customer Services Manager 56,703 Market 55,649 64,559 3.25% Contract and Procurement Manager 58,690 Market 55,649 64,559 3.25% Library Director open - 58,431 67,788 - Line Crew Superintendent 76,829 Above 61,353 71,177 2.50% Engineering Services and System Ops Supervisor 72,143 Above 61,353 71,177 2.50% Police Resources Manager 62,451 Market 61,353 71,177 3.25% Financial Reporting and Accounting Manager 62,116 Market 61,353 71,177 3.25% Public Works Operation Manager 61,875 Below 64,421 74,735 5.95% Assistant Finance Director 71,000 Market 69,768 82,725 3.25% Parks and Recreation Director 72,939 Market 71,024 82,396 3.25% Police Major 92,200 Above 74,574 86,515 2.50% Senior City Administrator 86,809 Market 78,303 90,840 3.25% **Human Resources Director 73,861 Below 78,303 90,840 5.95% **Controller/Treasurer 113,229 Above 82,219 95,384 2.50% Inspections Director/Planner 82,371 Market 82,219 95,384 3.25% Information Technology Director 88,666 Market 86,328 100,151 3.25% Central Services Director 86,103 Below 86,328 100,151 5.95% Chief of Police 104,111 Market 95,179 110,420 3.25% Public Services Manager 100,635 Market 95,179 110,420 3.25% Public Utilities Manager 104,000 Market 95,179 110,420 3.25% City Manager 112,948 Market 110,179 127,821 3.25% * Assuming a GOOD performance evaluation; actual increase may vary +/‐ two percent based on actual performance evaluation score. ** New hires or promotions that do not qualify for increases at this time/In accordance with the PFP policy these staff are given increases at their first annual review after hire or promotion. *** Reclassification also recommended for this position. See the Promotion/Reclassification table. 2009 Draft Operating Budget 161

Pay­For­Performance Salary Information City of Dover Performance Scores The Pay‐For‐Performance policy uses a 0‐50 weighted scoring system. This year’s performance spread (shown in Table III) uses a 0.75 percent pay increase differential between performance grades except for employees who are paid above the maximum of their grade and employees paid above market. The score ranges encourage a more normal bell curve where more employees’ scores are disbursed into both the higher range and the lower range and less concentrated in the two middle ranges. Table III Performance Scores PFP SCORE ADJUSTMENT Employee Employee Employee At Employee Above Above Market Market Below Market From To Maximum 0 19 0 0 0 0 20 29 0 2.00% 2.50% 3.00% 30 35 2.00% 2.50% 3.25% 4.25% 36 41 2.75% 3.25% 4.00% 6.00% 42 50 3.50% 4.00% 4.75% 6.50% Note: Currently there are 26 non‐bargaining employees below market, 40 at market, and 17 in above market. Only one non‐bargaining employees is above maximum. 3. New Positions Recommendations During the budget process, the City Manager received twelve (12) requests for new positions. While originally supporting six (6), due to budget constraints none were approved for inclusion in the budget. There are three new positions for the newly formed Economic Development Division; however these positions were outside of the departmental request process. One of those three positions currently exists in the Main Street budget and will be transferred to the City. The new positions are summarized in the table below. Amount Department Position Justification Budgeted Economic Main Street Coordination of City’s economic development efforts. Existing $71,642 Development Manager position from existing Main Street budget. Economic Marketing Coordination of City’s economic development efforts $83,853 Development Professional Economic Administrative Coordination of City’s economic development efforts $61,853 Development Assistant 162 2009 Draft Operating Budget

Pay­For­Performance Salary Information City of Dover 4. Reclassification/Upgrades Proposed for Non‐Bargaining Eight requests for reclassifications/re‐gradings and promotions of non‐bargaining positions were reviewed. Seven were included in the budget. Some involved creating a new position title, some involved creating a career ladder and some involved increasing the labor grade of a current position as a result of increased responsibilities. The Library division of Parks and Recreation is recommending that the Office Assistant II be reclassified to Administrative Assistant. The budget includes two reclassifications for the Public Services Group and a creation of a career ladder for Planners. The recommendations for reclassifications are GIS Coordinator to GIS Manager and Weed and Seed Coordinator to Community Prevention Manager. The creation of a career ladder among the planning staff is desired. This ladder is being developed for acknowledgement of obtainment of professional certifications. The ladder is being suggested for recruitment and retention, and is similar to the State of Delaware’s career ladder for Planners. The Public Utilities department is recommending the Water Production Supervisor be re‐graded however retain the same job title. The changes are summarized in the following table. Amount Department Position Justification Budgeted Secretary II to Library Performing Administrative Assistant duties $2,605 Administrative Assistant Public Services GIS Coordinator to GIS Additional responsibilities as the function expands and $3,068 Admin Manager grows Weed & Seed Coordinator Public Services to Community Prevention Reclassified to fit actual duties being performed. Planning Manager $744 Public Services Planner I Creates a progressive career path for Planners N/A Planning Public Services Senior Planner Creates a progressive career path for Planners N/A Planning Public Services Planner to Planner II Creates a progressive career path for Planners $2,303 Planning Public Utilities Water Production Reclassified to fit actual duties being performed $3,338 Water Treatment Supervisor Re‐grading 2009 Draft Operating Budget 163

Pay­For­Performance Salary Information City of Dover 5. Reclassification Re‐grading of Bargaining Positions These positions were reviewed with the IUE Union and department heads outside of negotiations. The union, as well as, the City reviewed the positions for consideration. These changes are supported by management. The changes are summarized in the table below. Amount Department Position Justification Budgeted Communications $30,261 Police Re‐grading 11 from a grade 17 to 18 Operators Police Animal Control Officer Re‐grade one from a grade 11 to 12 $1,909 Central Services Mechanic I to Mechanic II Re‐grade one from grade 15 to 19 $10,468 Courier to Central Central Services Re‐grade one from grade 12 to 13 $1,747 Mailroom Clerk Central Services Storekeeper I Re‐grade two from grade 12 to 13 $3,454 Central Services Storekeeper II Re‐grade one from grade 14 to 15 $2,198 164 2009 Draft Operating Budget

Organization of Recommendations Rec. # Page # in MAG or Employee’s Recommended Action City’s Recommended Action Estimated Phase 2 Report Completion & Related Date Exhibit Training MAG 1 2‐4 Change the PFP policy to require training for Update language: Change the PFP Immediately supervisors once per year. If training is not attended, policy to require training for deny any salary increase for which the supervisor may supervisors once per year. If be eligible. training is not attended, deny any salary increase for which the Exhibit 5, page 5 supervisor may be eligible. The City Exhibit 5‐ Manager may excuse a supervisor Appendix A from the training. Employee Exhibit 5, page Provide educational training to employees on the PFP Training will begin being offered to Immediately 7 5 system and process employees. Evaluation ‐ Process MAG 2 2‐5 Establish a more precise time frame within the set of This recommendation is in Immediately Instructions so as to clearly define the time allotted for reference to allowing sufficient time each step in the performance review cycle. for the HR Director to review evaluations. The instructions have Exhibit 4, page 1 been updated to include a time frame of five days. MAG 3 2‐5 Written quarterly reviews should be done by Required quarterly reviews will Implement July Department Heads, and documented in the evaluation begin July 1, 2009 as this review 1, 2009 Exhibit 4, page 2 by entering into the PFP software. cycle is ending. MAG 4 2‐5 All evaluated employees should conduct self The PFP instructions will be updated Effective with evaluation, with the purpose of then comparing them accordingly. reviews to be Exhibit 4 at the formal performance evaluation meeting. completed by page 3 May 31, 2009.

Organization of Recommendations Rec. # Page # in MAG or Employee’s Recommended Action City’s Recommended Action Estimated Phase 2 Report Completion & Related Date Exhibit Evaluation – Process (Continued) MAG 13 5‐8 Automate the statistical normalization of rater This will become a goal for the HR Present to City comparisons. Director for FY10. Council by February 2010. MAG 14 5‐8 Hold up salary adjustments until all evaluations are Not recommended for Immediately complete; publish stragglers on the City’s intranet. implementation. We wish to continue our current practice of extending the specific tardy department head’s salary increase. “Stragglers” will be handled by the Exhibit 4, page 1 supervisor. MAG 17 6‐2 Require quarterly review of all employees being Additional monitoring of quarterly Implement July Exhibit 4, page 2 evaluated. reviews will be maintained. 1, 2009. MAG 19 6‐3 Add monitoring and reminder goals to the Core Rather than modify the PFP Effective July 1, Competency of the HR Director – Include monitoring evaluation for this one 2009 goals for the HR Director to ensure consistency with the recommendation, this suggestion City’s Strategic Plan, reminding departments of the need for will become a standing goal for the quarterly reviews, setting up annual training on the program, HR Director. and identifying unusual scoring patterns to the City Manager, the Department Head and the rater. This should be reflected in the Supervisory Core Competency. Employee Exhibit 4, page 2 All evaluations are due at the same time thus causing a This issue is being addressed by July 1, 2009 3 heavy work load in a short amount of time requiring quarterly reviews. Thus as the fiscal year ends three fourths of the evaluation should be complete.

Organization of Recommendations Rec. # Page # in MAG or Employee’s Recommended Action City’s Recommended Action Estimated Phase 2 Report Completion & Related Date Evaluation – Process (Continued) Employee Exhibit 4, page Do not require an explanation for a performance score Explanation for a score of three will Effective for 5 4 of three and four not be required. evaluations being completed for FY09. Employee Exhibit 4, page Do not assign goals during probationary period It is realized that the probationary Immediately 8 2 period is a time for learning. Only when necessary will goals be assigned. Grading Definitions MAG 5 2-6 Change the current performance form label of “Good” The PFP evaluation will be updated. Effective with to “Meets Expectations” on the evaluation form. reviews to be Exhibit 3 completed by Exhibit 4, page May 31, 2009. 4 MAG 6 2-6 Change the current performance form label of The PFP evaluation will be updated. Effective with “Acceptable with Some Improvements Needed” to reviews to be Improvement Needed” on the evaluation form. completed by Exhibit 3 May 31, 2009. MAG 7 2-7 Change the current performance label of “Outstanding” The PFP evaluation will be updated. Effective with to “Results Rarely Achieved by Others.” reviews to be Exhibit 3 completed by Exhibit 4, page May 31, 2009. 4

Organization of Recommendations Rec. # Page # in MAG or Employee’s Recommended Action City’s Recommended Action Estimated Phase 2 Report Completion & Related Date Exhibit Council Evaluations MAG 8 4‐5 Create a committee structure to evaluate Council If Council wants to pursue further, FY10 appointed positions that would make a separate Committee Action Form recommendation on compensation adjustments for will be prepared and presented. the evaluated employee. Evaluation Design Changes MAG 9 4‐5 Apply the changes noted in Section 5.0 to the This will become a goal for the HR Present to City development of Core Competencies for the Council Director for FY10. A committee will Council by positions. See recommendation #15 ‐ Streamline and be formed to formally discuss. February 2010. enhance Core Competency and Element statements. MAG 15 5‐12 Streamline and enhance Core Competency and This will become a goal for the HR Present to City Element statements. See Rec. #9 Director for FY10. A committee will Council by be formed to formally discuss. February 2010. MAG 18 6‐3 Add responsible participation in the PFP as a The core competency for Effective July 1, Supervisory Core Competency Supervisory Skills will be updated 2009 accordingly. Employee Implement weighting of goals This option will be considered an If implemented, 4 evaluation committee that will be it will become created. effective in FY 10. Pay Increases MAG 10 5‐3 Base the movement within the pay grade on the According to MAG, this will be concept of a “normal progression” career plan for achieved by implementing employees who “Meet Expectations” to reach Recommendation #11. midpoint in 10 years. MAG 11 5‐4 Use the arithmetic midpoint of the position’s assigned Use the described method for July 1, 2009 Exhibit 5 page pay grade as the basis for calculating potential calculating July 1, 2009 pay 1&2 performance adjustments. increases. Ex. 5 Appexd. A

Organization of Recommendations Rec. # Page # in MAG or Employee’s Recommended Action City’s Recommended Action Estimated Phase 2 Report Completion & Related Date Exhibit Pay Increases ‐ Continued MAG 12 5‐6 Establish a simple and straightforward program for Create a matrix for awarding July 1 July 1, 2009 potential adjustments of zero (0) through an annually pay increases. determined percentage amount, based on budget Appendix will be created based Exhibit 5 – availability. upon budget and market conditions. Appendix A MAG 21 6‐5 Any pay out for performance over the maximum of In addition to the proposed Effective with the range is a lump‐sum one‐time payout that does language, add, “the city reserves the pay increases not roll into the base salary. right not to award any pay increase awarded on July for employee’s whose salary is over 1, 2009. Exhibit 5, page 2 the maximum of the range.” Exhibit 5 – Appendix A No Action MAG 16 6‐1 Continue to complete performance evaluations No additional action needed. Exhibit 4, page 2 annually as dictated by current policy. MAG 20 6‐4 Continue the current process for appeals. No action needed. Exhibit 5, page 4 Setting of Goals Employee Exhibit 4, page 5 Goals don’t flow down in a timely manner City Council/City Manager and Department 1 Mayor to establish goals for Heads are to Department Heads by March 31 of establish goals each year. for FY 10 immediately upon adoption of updated policy.

Organization of Recommendations Rec. # Page # in MAG or Employee’s Recommended Action City’s Recommended Action Estimated Phase 2 Report Completion & Related Date Exhibit Setting of Goals Employee Exhibit 4, page Goals are not realistic under current work load All supervisors are to be mindful of Effective with 2 5&6 the number of goals being assigned. evaluations for Exhibit 5, page Employees can create their own FY 10. 2 goals for review by their supervisor. The HR Director will be more astute to the number being assigned. Non-Monetary Incentives Employee High performers are not awarded The salary matrix provides for Immediately 6 additional compensation for employees who receive a higher than average performance score. An improved effort will be provided by supervisors in rewarding high performers with non-monetary incentives and actions. My Docs: Organization of Recommendations

MAG Study Recommendation/Explanation of Awarding Salary Increases MAG’s recommendation eliminates the below, at and above market reference. Pay increases would be awarded based upon the mid-point of the salary range of the position the employee occupies and the employee’s performance rather than the employee’s placement within the salary range and performance. As a result, assuming employees performance is at the same level, employees at the beginning of the scale would receive a larger percentage increase in proportion to their salary. As the employee’s salary moves along the salary range, the mid-point increase would reflect a smaller and smaller increase. Example #1: Midpoint of Salary Range $10,000 $20,000 $30,000 PFP Rating Adjustment as a % Dollar Amount of Score of Midpoint* Increase 0-19 Unsatisfactory 0 0 $400 20-29 Needs Improvement 2% ($20,000 * 2%) Good $600 30-35 3% (Meets Expectations) ($20,000 * 3%) $800 36-41 Commendable 4% ($20,000 * 4%) Outstanding $1,000 42-50 5% (Results Rarely Achieved by Others) ($20,000 * 5%) Reference page 5-5 of MAG study *Percentages are determined by City during the budget process Additional Examples on Page 2 and 3 1

MAG Study Recommendation/Explanation of Awarding Salary Increases Example #2: Computer Operator and GIS Technician are both grade 113. Each has the same midpoint value ($36,989). If a Computer Operator produces a higher performance evaluation score than the GIS Technician, then the Computer Operator would receive a higher adjustment. If the performance evaluation score translates into a 4% adjustment (see table in Example #1) for the Computer Operator, the dollar value of the increase would be $1,479.56. If the GIS Technician’s performance evaluation translates into a 3% adjustment (see table in Example #2), the dollar value of the increase would be $1,109.67. If their scores are in the same range, they would both receive the same dollar value of adjustment; however the percentage in relation to their current salary would differ. To clarify, if the Computer Operator’s salary is $30,000, the $1,479.56 is really a 4.9% increase. If the GIS Technician’s salary is $40,000, an increase of $1,109.67 is really a 2.8% increase. This type of movement allows the employee’s at the lower end of the scale to move closer to mid-point, while maintaining others at mid-point unless their performance is stellar. True Increase of Dollar Value Position Salary Percentage Midpoint of Increase Increase Computer $30,000 4% $1,479.56 4.9% Operator GIS $40,000 3% $1,109.67 2.8% Technician Midpoint of Salary Range $28,762 $36,989 $45,215 Computer Operator GIS Technician $30,000 $40,000 $1,479.56 (4% of midpoint) $1,109.67 (3% of midpoint) $1,479.56/$30,000 = 4.9% increase $1,109.67/$40,000=2.8% increase Additional Example on Page 3 2

MAG Study Recommendation/Explanation of Awarding Salary Increases Example #3: Reference page 5-4 of MAG study According to MAG’s recommendation #21 page 6-5 on the report, the City should consider providing any amount above the maximum of the range in a one-time lump-sum payment that does not roll into the base salary. The city is also recommending that the city reserves the right not to award any pay increase for employee’s whose salary is over the maximum of the range. Midpoint of Salary Range $28,762 $36,989 $45,215 GIS Technician $48,000 $1,109.67 (3% of midpoint) No increase or a lump-sum payment of $1,109.67 that does not roll into base 3

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Parks, Recreation & Library DATE SUBMITTED: September 1, 2009 PREPARED BY: Zachery Carter SUBJECT: St. Jones River Watershed Coordinator Grant REFERENCE: N/A RELATED PROJECT: Silver Lake Commission APPROVALS: City Manager & Controller EXHIBITS: Memorandum of Understanding EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: RECOMMENDED ACTION: Authorize the City Manager to accept grant funds from the State of Delaware, and sign the Memorandum of Understanding for these funds. BACKGROUND AND ANALYSIS Over the last two (2) years the Silver Lake Commission (SLC) and the City Manager have been trying to fund a Silver Lake Manager position. This position was recommended in a “Technical Background Report – Silver Lake Watershed”, that was completed in 1995. One of the options for the protection and improvement of Silver Lake was to hire a Lake Manager to coordinate activities and direct lake protection efforts. Since the completion of this report the SLC has been trying to implement the recommendations of the report to improve the water quality of Silver Lake. Staff to oversee these improvements has been provided by the Parks and Recreation Director. In order to provide the necessary staff to focus on improving the water quality, the SLC and City Manager have been looking for options to hire a Lake Manager. In May 2009, the State of Delaware obtained funds to hire a St. Jones Watershed Coordinator. They contracted with the Kent Conservation District to hire a part‐time employee for this position. The responsibilities of the Watershed Coordinator include working with the Silver Lake Commission to create partnerships for water quality projects, obtain funds for design & construction of water quality projects and work harmonious to complete projects that will improve water quality in Silver Lake and the St. Jones Watershed. The State of Delaware has received additional funding from the American Recovery & Reinvestment Act (ARRA), to conduct water quality management planning function and implement projects which defines, assess’, and manages pollution entering state waters. As part of the requirements of the Clean Water Act the State is required to pass‐ through 40% of the funding to carry out planning activities jointly with local, regional, and interstate entities. Funds for the Watershed Coordinator satisfy the 40% pass through requirement of the Clean Water Act. With these funds the City would contract with the Kent Conservation District to increase the hours of the Watershed Coordinator to work with the City of Dover, and the Silver Lake Commission. Attached is a draft Memorandum of Understanding, between the State of Delaware, Kent Conservation District, and the City of Dover. This funding will provide the Lake Manager that was recommended in the “Technical Background Report Silver Lake Watershed”. With this funding the SLC would have access to a professional Lake Manager that would work with them to protect and improve the water quality of Silver Lake. This would be a benefit to the Parks & Recreation Department in that the department administrative assistant would no longer need to attend commission meetings, take minutes, and handle the administrative functions for the SLC. Along with this the Parks

and Recreation Director would spend less city time working on tasks for the SLC. The department would still provide copies of minutes and reports for the SLC along with materials for SLC projects as they have in the past. However, the Lake Manager would provide staffing to create a partnership for projects, obtain funds for design and construction of water project, and provide water quality management planning functions and service for the SLC. The Parks & Recreation Director would oversee the activities of the Watershed Coordinator accomplishments on a quarterly base as required by EPA. The Finance will pick up some amount of additional work for processing the receipts and disbursements as well as grant reporting. We recommend that the City Manager be authorized to accept grant funds in the amount of $77,720 from the State of Delaware and sign the Memorandum of Understanding to execute the contract for the St. Jones Watershed Coordinator.

MEMORANDUM OF UNDERSTANDING Pursuant to the American Recovery and Reinvestment Act (ARRA) and Clean Water Act Section 604(b) Water Quality Management Planning THIS MEMORANDUM is between the City of Dover (hereinafter referred to as the CITY), represented by Tony DePrima, City Manager, City Hall, P.O. Box 475, Dover, DE 19903-0475; Department of Natural Resources and Environmental Control (hereinafter referred to as the DEPARTMENT), 89 Kings Highway; Dover, DE 19901, represented by Collin P. O'Mara, Secretary; and the Kent Conservation District (hereinafter referred to as the DISTRICT), 800 Bay Road, Suite 2, Dover, DE 19901 represented by Timothy Riley, District Coordinator. WITNESSETH Whereas the DEPARTMENT has a special need for water quality planning functions and services through a Watershed Coordinator for the St. Jones Watershed that the CITY and the DISTRICT are in a unique position to furnish. The CITY desires to hire a Silver Lake Coordinator through its Silver Lake Commission. Silver Lake is a subwatershed of the St. Jones Watershed. Unfortunately, the CITY lacks the funds to hire such a position. The DISTRICT can provide coordination, management and fund disbursement at the request of the DEPARTMENT for planning functions and services as outlined in this document. The DISTRICT is willing to enter into a Memorandum of Understanding with the CITY in order to provide these planning functions and services with the assistance of a Watershed Coordinator. Funding for is Memorandum is provided by the American Recovery and Reinvestment Act and has been awarded to the Department of Natural Resources and Environmental Control pursuant to ARRA and Section 604(b) of the Clean Water Act. The latter requires states to conduct water quality management planning functions and implement projects which define, assess, and manage pollution entering State waters. The Clean Water Act also directs states to carry out planning activities jointly with local, regional, and interstate entities and give funding priority to such entities. Funds for the Watershed Coordinator satisfy the 40% pass-through requirement of Section 604(b). To this end, the DEPARTMENT and the CITY have developed a plan to carry out water quality management planning functions and services with the assistance of a Watershed Coordinator for the St. Jones River Watershed. The Watershed Coordinator will develop an implementation strategy from the St. Jones Watershed Implementation Plan to: 1. Determine which Implementation Plan projects are feasible based upon water quality benefits, cost of installation, and the ability of landowners to implement the projects. 2. Work with the Silver Lake Commission to create partnerships for water quality projects. 3. Obtain funds for design and construction of water quality projects. 4. Work with the CITY to plan and create a stormwater utility for watersheds within City of Dover municipal boundaries.

IT IS MUTALL Y AGREED BY THE PARTIES HERETO THAT: 1) The CITY will: a) Execute a purchase order to the DISTRICT for $77,720 for the services of a St. Jones Watershed Coordinator until August 17, 2011 or until funds are exhausted. Funds for the Watershed Coordinator satisfy the 40% pass-through requirement of Section 604(b) of the Clean Water Act. b) Provide written documentation of the Watershed Coordinator's accomplishments on a quarterly basis according to the schedule established by EPA. c) Oversee the activities of the Watershed Coordinator. d) Provide written notice to the DEPARTMENT in the event that the CITY cannot fulfill its responsibilities under this Memorandum. e) If financially able, the CITY may provide the Watershed Coordinator with office space and necessary office equipment such as telephone and computer equipment. 2) The DISTRICT will: a) Invoice the CITY for the services of the Watershed Coordinator until August 17,2011 or until funds are exhausted. b) Assist the CITY and the DEPARTMENT in coordinating all activities of the Watershed Coordinator. c) Provide general guidance and other services, as they may be available and appropriate. 3) The DEPARTMENT will: a) Execute a purchase order to the CITY for $77,720 for a St. Jones Watershed Coordinator until August 17, 2011 or until funds are exhausted. Funds for the Watershed Coordinator satisfy the 40% pass-through requirement of Section 604(b) of the Clean Water Act. b) Provide work plan oversight and technical assistance to the Watershed Coordinator as needed and appropriate. c) Provide office space and equipment should the CITY be financially unable to do so. d) Ensure that quarterly reports are completed and transmitted to EPA as required. 4) This Memorandum can be modified or terminated, with thirty (30) days written notice, and by mutual consent of the parties hereto. Reimbursement will then be for work completed that is othelWise eligible for reimbursement prior to the effective date oftermination. 5) The DEPARTMENT shall not be obligated for the expenditure of funds in excess of $77,720. 6) All notices, requests, or demands to be given by one party to another under the provisions of this agreement will be fOlWarded,properly addressed to the following respective parties: CITY: City of Dover Department of Parks and Recreation P.O. Box 475 Dover, DE 19903

Attention: Zachary Carter DEPARTMENT: Department of Natural Resources and Environmental Control Division of Water Resources 820 Silver Lake Blvd - Suite 220 Dover, DE 19904-2464 Attention: Lyle Jones DISTRICT: Kent Conservation District 800 Bay Road - Suite 2 Dover, DE 19901 Attention: Timothy Riley Other addresses may be designated by written notice. 7) It is the intent of the parties to fulfill their obligations under this memorandum. 8) This agreement represents the entire agreement between the parties. Tony DePrima Date Dover City Manager Timothy Riley Date District Coordinator, Kent Conservation District CollinP. O'Mara Date Secretary Departmentof NaturalResourcesand EnvironmentalControl

ACTION FORM PROCEEDING: Legislation, Finance & Administration Committee DEPARTMENT OF ORIGIN: City Manager’s Office DATE SUBMITTED: 09/15/09 PREPARED BY: Tony DePrima, City Manager SUBJECT: Disposition of City Owned Land – Property Located at 101 Jefferson Court REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: N/A EXHIBITS: Offer from Habitat for Humanity EXPENDITURE REQUIRED: $41,856 ($71,856 less $30,000) AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: N/A RECOMMENDED ACTION: Authorize the City Manager to sell the property to Habitat for Humanity for $30,000 under exception D of the Land Disposal Policy which will be credited to the General Fund. The cost of the demolition and environmental cleanup will be expensed in the General Fund in the amount of $71,856. BACKGROUND AND ANALYSIS In March 2008, City Council determined that the property at 101 Jefferson Court (Tax ID# ED-05-076.07-01- 140.000-000) was surplus property. Council authorized the City Manager to sell the property in accordance with the City of Dover Procedure for Sale and Disposition of Real Property for a minimum price of $75,000. The $75,000 minimum was based on the cost the city invested in demolition and environmental cleanup. The property is an end unit townhouse located at the Presidential Courts Town Home Development in West Dover. The property was acquired by the City through a condemnation. The interior of the property was completely demolished and cleaned as part of the condemnation effort. Unfortunately, the timing coincided with the huge collapse of the housing market and the City Manager was not successful in selling the property. There have been several inquiries since then, but there have been no offers from private developers. The City has had to do routine maintenance on the property and regularly inspect it. The City Manager recently met with representatives of Habitat for Humanity and learned that they were seeking to buy property for their program. Habitat for Humanity is a non-profit corporation. The Jefferson Court property was suggested to them and a subsequent tour was scheduled. Following the tour, we received an offer from Habitat for Humanity for $30,000. This property would need substantial reconstruction to make it livable which fits perfectly into Habitat’s mission. Like all Habitat homes, a potential family for the house would be found and then volunteers, along with the family, would renovate the home. Habitat would then sell the home to the family at an affordable cost. This has been a successful model nationwide. Exception D of the Land Disposal Property allows City Council to gift property to a non-profit organization if City Council determines it’s in the best interest of the City. While this is not an outright gift, it is a sale in an amount below its cost to demolish and clean. There would be a financial advantage to putting this property back on the City tax list and off our maintenance list. For the City as a whole, it is one less vacant property.

ACTION FORM PROCEEDING: Legislative, Finance, and Administration Committee MEETING DATE: 09/28/09 DEPARTMENT OF ORIGIN: City Clerk’s Office PREPARED BY: Traci A. McDowell, City Clerk SUBJECT: Proposed Ordinances Related to Charter Amendments DATE SUBMITTED: 09-16-2009 RELATED PROJECT: N/A APPROVALS: N/A EXHIBITS: Proposed Ordinances #2009-23 EXPENDITURE REQUIRED: $ N/A AMOUNT BUDGETED: $ N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: First Reading 10/12/09, Second Reading/Final Action 10/26/09. RECOMMENDED ACTION: Approval of the proposed amendments to the City of Dover Code. BACKGROUND AND ANALYSIS In October 2007, the Legislative, Finance, and Administration Committee began a comprehensive review of the recommendations of the 2005 Charter Review Committee. The committee’s recommendations were then forwarded to City Council for consideration and adoption. The Delaware General Assembly considered and approved the amendments to Dover’s Charter on July 8, 2009. Staff has prepared proposed amendments to the Dover Code related to the Charter amendments. S:\ClerksOffice\PACKETS\2009\Committee\LF&A\09-28-2009\Ordinances Related to Charter Amendments - 09-28-2009.wpd

CITY OF DOVER PROPOSED ORDINANCE #2009-23 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 2 That Chapter 2 - Administration, Article IV - Officers and Employees, Division 1 - Generally, Section 2-201 - 3 Compensation and expenses for mayor, council, employees and other elected or appointed officials, be amended 4 by inserting the text indicated in bold, blue, italics and deleting the text indicated in red strikeout as follows: 5 Sec. 2-201. Compensation and expenses for mayor, council, employees and other elected or appointed officials. 6 A. In accordance with section 12 of the Charter, authorizing the council to establish compensation and 7 expenses for the mayor and councilmembers, city employees and other elected or appointed officials, the 8 following fees are hereby established: 9 (1) Mayor. The mayor shall receive an annual salary of $45,000.00. For the period beginning 10 July 27, 2009 and ending July 26, 2010, the mayor shall receive an annual salary of $44,100. In addition, 11 the mayor shall receive an expense allotment of up to $5,000.00, to be included in the city's annual 12 budget, for miscellaneous expenses, to be reimbursed upon submission of receipts or proper 13 documentation. Expenses in excess of this amount shall only be permitted by council approval. The 14 mayor shall be entitled to all benefits customary to an employee of the city, except pension benefits, and 15 sick and vacation leave. 16 (2) Councilmembers generally. Each councilmember shall receive an annual salary of $7,416, to be paid 17 monthly. For the period beginning July 27, 2009 and ending July 26, 2010,each councilmember shall 18 receive an annual salary of $6,674.40, to be paid monthly. The council president shall receive an annual 19 salary of $8,652, to be paid monthly. For the period beginning July 27, 2009 and ending July 26, 2010, 20 the council president shall receive an annual salary of $7,786.80, to be paid monthly. Councilmembers 21 shall receive reimbursement for actual and necessary expenses incurred when on official business as 22 prescribed by ordinance or policy. 23 (3) Councilmembers hearing appeals. Members of the council sitting to hear appeals from the municipal 24 assessment shall receive $50.00 for per diem reimbursement for expenses for the preparation and 25 attendance of each meeting of the assessment appeals committee. 26 (4) Nonemployee election officers. Each person not a city employee appointed to serve as an election 27 judge for any municipal election shall receive $200.00 for per diem reimbursement for each election 28 attended. Each person chosen to serve as a clerical assistant for any municipal election shall receive 29 $150.00 for per diem reimbursement for each election attended. 30 (5) Employee election officers. Employees of the city appointed to serve as election judges or officials 31 for any municipal election shall receive $150.00 for per diem reimbursement for expenses for each 32 municipal election attended in addition to their regular salary. 33 (6) Appointee to council committee. Each appointed member to any city council committee, not serving 34 an elected term to any city office, shall receive $75.00 for preparation and attendance at each committee 35 meeting to which the member is appointed.

Proposed Ordinance #2009-23 - Related to Charter Amendments Page 3 36 (7) Employee on council committee. For any city employee appointed to a council committee shall 37 receive $25.00 for reimbursement for expenses per diem for each meeting attended which is held after 38 5:00 p.m. on a scheduled workday or at any time on a weekend or city-approved holiday. 39 (8) Planning commission. Each appointed member of the planning commission shall receive $100.00 per 40 diem reimbursement for expenses to be paid monthly for preparation and attendance at each meeting of 41 the planning commission. 42 (9) Board of adjustment. Each appointed member of the board of adjustments shall receive $75.00 per 43 diem reimbursement for expenses to be paid monthly for preparation and attendance at each meeting of 44 the board of adjustment, to become effective July 1, 2007. 45 B. Compensation commission. 46 There is hereby created a compensation commission to consider compensation for the mayor, city 47 council, and paid members of city committees and commissions. The compensation commission shall consist 48 of five (5) members, one (1) member appointed by the mayor, one (1) member appointed by the council 49 president, and three (3) members appointed by city council during the annual meeting. Members shall be city 50 residents who are registered to vote in city elections. Members shall serve two (2) year terms and cannot be 51 re-appointed within the next two (2) years. The controller/treasurer and human resources director shall serve 52 as ex-officio, non-voting members. 53 The compensation commission shall meet as needed, with a report due to Council six (6) months prior 54 to the regular municipal election, with one (1) public hearing held prior to their submission of the report to 55 council. Upon receiving the resolution of the commission, the city council may reduce or reject the 56 commission's recommendation, but it may not increase any item in the resolution. The recommendations 57 contained in the resolution, and any permitted changes to such recommendations, shall not become effective 58 unless adopted by ordinance enacted at least three (3) months prior to the elections of the next succeeding 59 mayor and council, and shall take effect only for the next succeeding terms of office of the mayor and council. 60 Charter references: Mayor and Council, subpart A, § 12. 61 (NOTE: Introduced at LF&A Committee on 2/23/09 with Charter Amendments (as Ordinance #2009-04) 62 BE IT FURTHER ORDAINED THAT: 63 Chapter 2 - Administration, Article IV - Officers and Employees, Division 4 - Finance Director, Sec. 2-261 - 64 Appointment, be amended by inserting the text indicated in bold, blue, italics and deleting the text indicated in 65 red strikeout as follows: 66 DIVISION 4. FINANCE DIRECTOR CONTROLLER/TREASURER 67 Sec. 2-261. Appointment. 68 The city treasurer shall serve as the finance director. There shall be a controller/treasurer selected by the city 69 council at its annual meeting.

Proposed Ordinance #2009-23 - Related to Charter Amendments Page 4 70 BE IT FURTHER ORDAINED THAT: 71 Chapter 2 - Administration, Article IV - Officers and Employees, Division 7 - General Employee Pension Plan, 72 Subdivision II - Board of Trustees, be amended by inserting the text indicated in bold, blue, italics and deleting 73 the text indicated in red strikeout as follows: 74 The pension board of trustees shall consist of the following persons: 75 (1) Manager. The city manager. 76 (2) City officials. Two elected city officials who shall be appointed by the council president, subject to 77 confirmation of a voting majority of the city council at its annual meeting. 78 (3) Participants. Three participants or retired participants of the plan who shall be elected by the participants 79 and retired participants of the plan. 80 (4) Finance director/treasurer. The city finance director/treasurer. Controller/treasurer. The city 81 controller/treasurer. 82 (5) Election. 83 (a) Such election shall be for three-year staggered terms, beginning July 1 and ending June 30 three years later. 84 A regular election for filling these positions will be held the third week of June each year. 85 (b) In the first week of April of each year, the city clerk shall notify those eligible to vote of the exact time and 86 place of the election. Any general employee pension plan member that is eligible to vote and appears on the 87 listing of qualified voters who will be unable to appear at the polling place on the date and time of the election 88 may cast his or her vote by absentee ballot in the general employee(s pension plan election for the following 89 reasons: 1) armed forces, 2) public service, 3) occupation, 4) sickness, 5) disability, 6) religion, 7) vacation, or 90 8) residency outside of the Dover area which makes it infeasible to vote in person. 91 Sec. 2-363. Term of office of members. 92 The term of office of each member of the pension board of trustees, except the city finance 93 directorcontroller/treasurer, city manager, and elected city officials, shall commence on the first day of the 94 month following his election and continue for a period of three years or until his successor shall be elected and 95 qualified. 96 Sec. 2-364. Officers and ex officio members. 97 The pension board of trustees shall elect a chairperson, a vice-chairperson who shall serve when the chairperson 98 is absent, a secretary and a treasurer or fiscal agent designated by the pension board. The city finance 99 directorcontroller/treasurer shall be the pension fund treasurer and his bond shall cover all monies deposited 100 with him.

Proposed Ordinance #2009-23 - Related to Charter Amendments Page 5 101 BE IT FURTHER ORDAINED THAT: 102 Chapter 102 - Taxation, Article III - Realty Transfer Tax, Sec. 102-71 - Definitions. 103 (c) For the purpose of subsection (a)(5) of this section, in the case of a document described in subsection 104 (a)(2) of this section under which the consideration is based, in whole or in part, on a percentage of the 105 income or receipts to be received in the future, actual consideration shall include the amounts actually 106 received under such percentage of income or receipts provision; provided, however, and notwithstanding 107 any other provisions of this article, that the tax imposed by this article shall be due and payable to the 108 finance director controller/treasurer within 30 days after the date such amounts become due and 109 payable under the agreement. 110 BE IT FURTHER ORDAINED THAT: 111 Chapter 110 - Utilities, Article I - In General, Sec. 110-3. Properties/utilities policy and regulations. 112 (a) The city manager and the controller/treasurer shall have authority to enter into properties/utilities 113 agreements for the rental of space, easements, rights-of-way and other properties owned and operated by the city. 114 (b) The city manager and the controller/treasurer shall also have authority to charge equivalent or higher 115 payment for the use of space, easements, rights-of-way and other properties in lieu of franchise fees. 116 ADOPTED: * 117 SYNOPSIS 118 This Ordinance amends the Dover Code to reflect recent Charter Amendments. 119 Actions History 120 09/28/2009 - Considered at LF&A

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 6 121 CITY OF DOVER - PROPOSED CHARTER AMENDMENTS IN FULL CONTEXT 122 PREAMBLE (NEW) 123 We the people of the City of Dover, under the constitution and laws of the state of Delaware, in order to secure 124 the benefits of local self-government and to provide for an honest and accountable mayor-council 125 council-manager government do hereby adopt this charter and confer upon the city the following powers, 126 subject to the following restrictions, and prescribed by the following procedures and governmental structure. 127 By this action, we secure the benefits of home rule and affirm the values of representative democracy, 128 professional management, strong political leadership, citizen participation, and regional cooperation. 129 (Adopted by Council 11/13/2007) 130 ARTICLE I. GENERAL PROVISIONS POWERS OF THE CITY 131 (Adopted by Council 11/13/2007) 132 Sec. 1.01. Powers of the City. 133 The city shall have all powers possible for a city to have under the constitution and laws of this state as fully 134 and completely as though they were specifically enumerated in this charter. 135 (Adopted by Council 11/13/2007 - Replaces 1st Paragraph of Sec. 3) 136 Deputy City Solicitor Pepper recommended the following in lieu of previously adopted Sec. 101 Powers 137 of the City in order to preserve the home rule language in the current Charter and to track 22 Del. C. 138 §802: 139 Sec. 1.01. Powers of the City. 140 In addition to the powers specifically enumerated by statutes in Title 22 of the Delaware Code and elsewhere, 141 the City of Dover shall assume and have all powers which under the Constitution of the State it would be 142 competent for the General Assembly to grant by specific enumeration, and which are not denied by statute. 143 Sec. 1.02. Construction. 144 The powers of the city under this charter shall be construed liberally in favor of the city, and the specific 145 mention of particular powers in the charter shall not be construed as limiting in any way the general power 146 granted in this article. 147 (Adopted by Council 11/13/2007)

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 7 148 Sec. 1.03. Intergovernmental Relations. 149 The city may participate by contract or otherwise with any governmental entity of this state or any other state 150 or states of the United States in the performance of any activity which one or more of such entities has the 151 authority to undertake. 152 (Adopted by Council 11/13/2007 - Strikeout advised by Deputy City Solicitor Pepper) 153 Sec. 1.04. Municipal corporation continued; boundaries. 154 The municipal corporation of the State of Delaware, known as "the City of Dover" shall continue to be a body 155 politic and corporate. The boundaries of the City of Dover are hereby established and declared as recorded on 156 the official map of record in the Recorder of Deeds Office in and for Kent County and State of Delaware as 157 presently existing and as hereinafter amended. 158 (Correction) 159 AMENDMENT TO SEC. 1.05 WAS NOT APPROVED BY THE GENERAL ASSEMBLY 160 Sec. 1.05A. Procedure to extend boundaries. 161 The City Council shall have the authority to annex any parcel(s) contiguous to the City by complying with 162 the provisions of Title 22, Chapter 1, Section 101 (22 Del. C. § 101). 163 (Adopted by Council 11/13/2007) 164 In order to extend the boundaries of the City of Dover the council shall adopt a resolution proposing the 165 inclusion of territory or territories within the limits of the City of Dover and calling for a special election to be 166 held in said territory or territories in accordance with Title 22, Chapter 1, Section 101, Delaware Code (22 Del. 167 C. § 101) insofar as applicable. Said resolution shall contain a description of the territory or territories proposed 168 to be annexed and shall specify the date of such election, which shall be not less than 30 nor more than 60 days 169 after the adoption of said resolution, and the place or places of said election. Said resolution shall be published 170 in at least two issues of a newspaper of general circulation within the City of Dover at least two weeks prior to 171 the day of said election. 172 Elections may be held in more than one of said territories on the same day, but the said elections shall be 173 separate; only the votes of qualified voters of a territory as herein described shall be counted in the election to 174 determine whether the territory shall be annexed. 175 Any such election shall be held by the election officers of the election district or districts of Kent County which 176 shall include the territory proposed to be annexed. Every person 18 years of age or upwards who is duly 177 registered upon the books of registered voters for said election district, or districts, who is a resident of the 178 territory proposed to be included within the limits of the City of Dover, and who does not own real estate within 179 said territory shall be entitled to one vote at the election to determine whether said territory shall be annexed; 180 and every person who is the owner of real estate within a territory proposed to be included assessed to them on 181 the assessment records of Kent County, shall be entitled to one vote. Owners of real estate in common shall be 182 entitled to one vote each. Life tenants shall be entitled to one vote each but the holders of the remainder interest 183 or similar interest subject to the life estate shall not be entitled to vote. Corporations, firms or associations shall 184 be entitled to one vote, the same as private persons.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 8 185 The Council of the City of Dover shall provide the ballots for any such election and shall bear the cost of holding 186 such election. The ballots shall briefly indicate the territory proposed to be included and shall provide two boxes 187 on the ballot beside which shall appear the words "FOR inclusion within the City of Dover," and "AGAINST 188 inclusion within the City of Dover." Each voter shall indicate their preference by making a mark within the box 189 beside the words expressing their preference. 190 At any such election the polls shall he open from 11:00 a.m. to 8:00 p.m. When the polls are closed the election 191 officers shall publicly count the votes and forthwith certify to the clerk of the council the number of votes cast 192 for and against inclusion within the city limits. At the next regular or special meeting of the council the mayor 193 and council shall receive the results of the election and make the same a part of the minutes of said meeting. 194 If a majority of the votes cast in an election held in a territory proposed to be annexed shall be in favor of the 195 inclusion of that territory, the council may thereupon adopt a resolution annexing said territory and including 196 same within the limits of the City of Dover. Upon the adoption of a resolution of annexation a copy thereof 197 certified by the clerk of council and a plot of the area annexed shall be forthwith filed for record with the 198 Recorder of Deeds of Kent County, and the area so annexed shall for all purposes thenceforth be part of the City 199 of Dover. 200 If a majority of the votes cast in an election held in a territory proposed to be annexed shall be against the 201 inclusion of that territory within the limits of the City of Dover, the proposed annexation of said territory shall 202 be declared to have failed. Nothing in this Charter shall prohibit the council from resubmitting a proposal of 203 annexation to the voters of said territory, or any portion thereof, under the authority of this section and in 204 accordance with the provisions thereof. 205 (Amd. of 7-12-2005 (S.B. 126)) 206 (Adopted by Council 11/13/2007) 207 Sec. 2. Status, general corporate powers, specific provisions for condemnation of property. 208 The inhabitants of the City of Dover within the boundaries defined in section 1.04 of this Charter, or within the 209 boundaries hereafter established, shall continue to be a body politic and corporate, by the name of "the City of 210 Dover," and under that name shall have perpetual succession; may have and use a corporate seal; may sue and 211 be sued; may hold and acquire by purchase, gift, devise, lease or condemnation, real property and personal 212 property within or without its boundaries for any municipal purpose, in fee simple or lesser estate or interest, 213 and may sell, lease, hold, manage, and control such property as its interest may require; and shall have all other 214 powers and functions requisite or appropriate for the government of the city, its peace and order, its sanitation, 215 appearance and beauty, the health, safety, convenience, comfort and well-being of its population, and the 216 protection and preservation of property, public and private. 217 Whenever it shall be necessary for any municipal purpose to condemn any real property or personal property 218 under this Charter, except as is herein otherwise specifically provided, the council must follow applicable state 219 law.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 9 220 Sec. 3. Enumeration of power not exclusive; manner of exercise of powers; Employee pension, benefit and 221 retirement systems authorized. 222 The enumeration of particular powers by this Charter shall not be held or deemed to be exclusive but, in addition 223 to the powers enumerated herein, implied thereby, or appropriate to the exercise thereof, it is intended that the 224 City of Dover shall have, and may exercise, all powers which, under the Constitution of the State of Delaware, 225 it would be competent for this Charter specifically to enumerate. All powers of the City, whether expressed or 226 implied shall be exercised in the manner prescribed by this Charter, or, if not prescribed herein then in the 227 manner provided by ordinance or resolution of the council. 228 (Adopted by Council 11/13/2007 - See new Section 1.01. Powers of the City.) 229 The City of Dover is hereby authorized, empowered and permitted to establish a system of pensions or benefits 230 through group insurance or otherwise as may be found proper and necessary, providing for life, accident, health, 231 hospitalization and death benefits, or any or either of them, for the regular employees of the said "City of Dover." 232 The said "City of Dover" is hereby authorized, empowered and permitted to enter into an agreement or 233 agreements with one or more insurance companies to provide a group insurance plan or plans, as may be required 234 or proper to carry out such system of pensions or benefits. The election to exercise such authority on the part 235 of the city shall be evidenced by an ordinance or resolution duly adopted by the council of the City of Dover as 236 other ordinances or resolutions are adopted, and the same shall be recorded in the official minutes of the said 237 council. Such ordinance or resolution shall provide for and establish a fund for the payment of the costs of such 238 pension system or benefits by making appropriations out of the treasury of the said "City of Dover," or by 239 requiring contributions payable from time to time by the employees included in such plan or plans, or by a 240 combination of both, or by any other method not prohibited by law. The participation in any plan adopted shall 241 be deemed to be mandatory by the City of Dover and made a condition of employment and continuing 242 employment. 243 The city council shall have power to enact ordinances for a pension or retirement system for the police of the 244 City of Dover, and to set aside a special fund for that purpose which fund shall be administered in accordance 245 with ordinances made and provided in that behalf and the laws of the State of Delaware. 246 Notwithstanding any statute to the contrary, the City of Dover shall have the power by ordinance to impose and 247 collect a tax, to be paid by the transferor or transferee as determined by council, upon the transfer of real property 248 within the city not to exceed one and one-half percent or as amended by state law of the value of the real 249 property as represented by the document transferring the property. The provisions of Section 5401 and Section 250 5403 of Chapter 54, Title 30 of the Delaware Code (30 Del. C. §§ 5401, 5403) shall apply with respect to any 251 realty transfer tax imposed by the City of Dover pursuant to the authority granted herein. The council of the City 252 of Dover may adopt an ordinance or ordinances to provide for the effective administration and regulation of any 253 tax adopted pursuant to the authority conferred herein. If the taxing power and authority granted herein shall be 254 exercised by way of a stamp affixed to a document, the recorder of deeds in and for Kent County shall not 255 receive for record documents subject to said tax unless stamps provided by the City of Dover are affixed thereto 256 showing payment of the tax. 257 (Amd. of 7-12-2005 (S.B. 126))

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 10 258 THIS ORDINANCE RELATED TO AMENDMENT TO SEC. 1.05 - PROCEDURE TO EXTEND 259 BOUNDARIES, WHICH WAS NOT APPROVED BY THE GENERAL ASSEMBLY 260 Sec. 1.05A. Procedure to extend boundaries. 261 CITY OF DOVER PROPOSED ORDINANCE #2009-02 262 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 263 That the Dover Code of Ordinances be amended by inserting a new Chapter 3 - Annexation, to read as follows: 264 Chapter 3 - ANNEXATION 265 Sec. 3-1. Annexation. 266 The City may, from time to time, extend its boundaries through the process of annexation in accordance with the provisions 267 of the Charter, Section 1.05, and Title 22, Chapter 1, Section 101 (22 Del.C.§101). 268 Sec. 3-2. Process. 269 The fee simple owner or owners of real property that is contiguous to the existing corporate limits may petition City 270 Council to annex that property. Such petition shall be submitted on an application form prepared by the City Clerk, along 271 with a survey drawing of the land proposed for annexation and a metes and bounds property description. If the property 272 has multiple owners, each owner must sign the petition. If the property is owned by an artificial entity, an authorized agent 273 of the artificial entity must sign the application. 274 Following receipt of the complete application, the City Clerk shall prepare a proposed ordinance. The proposed ordinance 275 shall specify the current zoning in Kent County and the proposed zoning in the City of Dover. The survey and property 276 description shall be attached to the proposed ordinance. Adoption of the ordinance shall constitute an amendment to the 277 zone map, and all requirements of Title 22, Chapter 3 (22 Del. C., Chapter 3) and Dover Code, Appendix B. Zoning, 278 Article 10, Section 5 shall apply. 279 At first reading of the ordinance, the ordinance shall be referred to the Utility Committee and the Planning Commission, 280 on dates set by City Council, and Council will set a date for the final reading and public hearing. The ordinance shall be 281 processed in the same manner as amendments to the zone map, as set forth in Dover Code, Appendix B. Zoning, Article 282 10, Section 5. 283 Following final reading and action by City Council, the City Clerk shall record the ordinance and attachments with the 284 Recorder of Deeds for Kent County, Delaware, within 45 days. 285 BE IT FURTHER ORDAINED THAT Chapters 4-5 be reserved. 286 ADOPTED: * 287 SYNOPSIS 288 This Ordinance creates a new Chapter 3 - Annexation, which provides the process for annexing property. 289 Actions History 290 February 23, 2009 - Introduced at LF&A Committee

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 11 291 ARTICLE II. MAYOR AND COUNCIL 292 Sec. 4. General Powers and Duties. Government vested in mayor and city council. 293 All powers of the city shall be vested in the city council, except as otherwise provided by law or this charter, 294 and the council shall provide for the exercise thereof and for the performance of all duties and obligations 295 imposed on the city by law. The government of the said city and the exercise of all the powers conferred by this 296 Charter (except as otherwise provided herein) shall be vested in a mayor and city council. (Amd. of 7-12-2005 297 (S.B. 126)) 298 (Amendment Adopted by Council 11/26/2007) 299 Sec. 5. Council to be legislative body; size; districts; terms of mayor and councilmen; qualifications. 300 The council shall be the legislative body of the city and composed of nine members nominated and elected as 301 herein provided. 302 In order that the members of council shall be distributed over the city, the city shall be divided into four election 303 districts, the district boundaries of which shall he established by council so that the districts are nearly equal in 304 population as shown by the most recent federal decennial census. The district boundaries established for 305 municipal elections shall continue in effect until the next succeeding federal decennial census is made available 306 for use by municipalities in the State of Delaware, at which time council shall redistrict the city so that the 307 districts shall be nearly equal in population in accordance with said census, which redistricting shall be used for 308 the next regular municipal election, which procedure shall be followed by council after each succeeding federal 309 decennial census in this manner so that the districts shall be maintained as nearly equal in population as possible 310 at all times. 311 The term of mayor shall be for a period of two years commencing on the second Monday in May following their 312 election and continuing for a term of two years until the second Monday in May or until their successor has been 313 duly elected and qualified. 314 The term of the councilmen shall be for two years. In each regular municipal election held in an odd numbered 315 year, five councilmen shall be elected, four by district voting being from the districts and one at-large as stated 316 herein. In each regular municipal election held in an even numbered year, four councilmen shall be elected by 317 district voting from each of the districts of the city. 318 In order to be eligible to be elected as mayor or as a member of council, the person must as of the date of the 319 election be: 320 (1) A citizen of the United States and of the State of Delaware; 321 (2) A resident of the city and having continuously resided therein or in an area annexed to the city during 322 the two years next preceding the day of the election; 323 (3) A resident of the election district from which they are seeking election, unless they are seeking election 324 as an at-large councilman or mayor; 325 (4) Eighteen Twenty-one years of age; and 326 (5) Nominated therefore, as hereinafter provided. 327 (Amendment Adopted by Council 11/26/2007)

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 12 328 Holding Other Office. Except where authorized by law, no council members shall hold any other elected 329 public office during the term for which the member was elected to the council. No council member shall hold 330 any other city office or employment during the term for which the member was elected to the council. No 331 former council members shall hold any compensated appointive office or employment with the city until one 332 year after the expiration of the term for which the member was elected to the council, unless granted a waiver 333 by the Board of Ethics (Ethics Commission). 334 (Amendment Adopted by Council 12/10/2007) 335 If a councilman files and runs for mayor, whether or not they are elected to said office, the term as councilman 336 shall automatically expire on the second Monday of May on the year of the election; and if they have a year 337 remaining on their term, then their office as councilman shall he filled at the same annual election in which they 338 have filed to run for the office of mayor. 339 Sec. 6. Municipal election; dates, time, and place of elections. 340 Regular municipal elections shall be held each year on the third Tuesday in April and shall be known as regular 341 municipal elections. All other municipal elections that may be held shall be known as special municipal 342 elections. At each such regular municipal election, the polls shall be opened at 7:00 a.m. and closed at 8:00 343 p.m. The council may designate the places of election and make all necessary rules and regulations not 344 inconsistent with this Charter or with other laws of the State of Delaware for the conduct of elections, for the 345 prevention of fraud in elections, and for the recount of ballots in case of doubt or fraud. At the regular 346 municipal election held on the third Tuesday in April of any odd numbered year, five councilmen shall be elected 347 for a term of two years, four of whom shall be elected by district voting from each of the districts as designated 348 by council and one of whom shall be elected by at-large voting by all voters of the city, as provided in section 349 5 of this Charter. At the regular municipal election held on the third Tuesday in April of any even numbered 350 year, four (4) councilmen shall be elected by district voting from each of the districts as designated by council 351 for a term of two years, and a mayor shall be elected by the voters of the city for a term of two years, as provided 352 in section 5 of this Charter. 353 (Strikeout advised by Deputy City Solicitor Pepper - redundant) 354 The regular municipal election shall be held annually on the third Tuesday of April. At each such regular 355 municipal election, the polls shall be opened at 7:00 a.m. and closed at 8:00 p.m. The council may designate 356 the places of election and make all necessary rules and regulations not inconsistent with this Charter or with 357 other laws of the State of Delaware for the conduct of elections, for the prevention of fraud in elections, and 358 for the recount of ballots in case of doubt or fraud. 359 (Staff moved from Section 8 - Time and place of elections; Election board; counting of votes; determination 360 of winners; tie votes; persons eligible to vote; voter registration; official ballots and voting machines; absentee 361 ballots. Combined to eliminate duplicate language.)

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 13 362 Sec. 7. Nomination petitions for candidates for council and mayor. 363 The mode of nomination of candidates for the council and for mayor shall be by petition, signed by not less than 364 ten nor more than 25 electors of the city, filed with the clerk of council on or before 4:30 4:00 p.m. on the 365 second Friday of February of each year for candidates for council and on or before 4:30 4:00 p.m. on the last 366 working day in January for candidates for mayor in the years when a mayor is to be elected. Should the second 367 Friday of February fall on a legal holiday, the filing date shall he 4:30 4:00 p.m. on the next working day 368 thereafter which is not a legal holiday. 369 Whenever a petition nominating a person for the office of mayor or councilman shall have been filed as above 370 prescribed, the name of such person shall he printed on the ballot for the regular municipal election as a 371 candidate for the office for which they were nominated, provided they possess the qualifications prescribed by 372 this Charter for a candidate for such office. 373 No nominating petition shall designate more than one person to be voted for as a member of council or as mayor. 374 The signers of a nominating petition for a member of the council must be electors of the city residing in the city 375 election district in which the nominee resides; but the signers to the nominating petition for the mayor and for 376 the at-large councilman may be city electors residing in the city at-large. 377 There must be attached to each nominating petition an affidavit of the circulator thereof, stating the number of 378 signers and that each signature appended thereto was made in their presence, and is the genuine signature of the 379 person whose name it purports to be, and that all of said signers are entitled to vote at the regular municipal 380 election referred to; and, in the case of a petition nominating a candidate for councilman running from a 381 particular district and to be elected by district voting, that the circulator of the petition verily believes that each 382 signer of said petition is a resident of the same city election district in which the nominee resides. 383 With each signature shall be stated the place of residence of the signer, giving the street and number or other 384 description sufficient to identify the same. The form of the nominating petition shall be substantially as follows: 385 We, the undersigned, electors of the City of Dover, hereby nominate ________________, who resides in the 386 ________________ City District of the said City of Dover, for the office of Councilman (or for the office of 387 Mayor as the case may be) to he voted for at the regular municipal election to be held in the said City, on the 388 _________ day of _________ in the year _________; and we individually certify that we are qualified to vote 389 for a candidate for the office named, and that we have not signed any other nominating petition for that office, 390 and that our places of residences are truly stated after our signatures. 391 Name __________ 392 Street and number __________ 393 (Space for Signatures) 394 STATE OF DELAWARE 395 KENT COUNTY 396 SS. 397 _________ being duly sworn (or affirmed) deposes and says that they were the circulator of the foregoing 398 petition paper containing signatures, and that the signatures appended thereto were made in his presence, and 399 are the signatures of the persons whose names they purport to be, and that they verily believe the residence of 400 each signer thereof to be truly stated, and that all of said signers are entitled to vote at the regular municipal

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 14 401 election referred to in said paper; and, in case the petition is nominating a candidate for councilman to be elected 402 from a specific district by district voting, that each signer of said petition is a resident of the same city election 403 district in which the nominee resides. 404 (Signed)__________ 405 Subscribed and sworn to (or affirmed) before me this _________ day of _________ 406 ________________ Justice of the Peace (or Notary Public) 407 (Amd. of 7-12-2005 (S.B. 126)) 408 Sec. 8. Time and place of elections; Election board; counting of votes; determination of winners; tie votes; 409 persons eligible to vote; voter registration; official ballots and voting machines; absentee ballots. 410 The regular municipal election shall be held annually on the third Tuesday of April. At each such regular 411 municipal election, the polls shall be opened at 7:00 a.m. and closed at 8:00 p.m. The council may 412 designate the places of election and make all necessary rules and regulations not inconsistent with this 413 Charter or with other laws of the State of Delaware for the conduct of elections, for the prevention of 414 fraud in elections, and for the recount of ballots in case of doubt or fraud. 415 (Staff moved to Section 6. Municipal election; dates, time, and place of elections. Combined to eliminate 416 duplicate language.) 417 There is hereby created an election board which shall be a non-elected body to oversee the municipal 418 elections, as well as to serve as an advisory board to Council on such matters as voter registration, municipal 419 elections, election rules and regulations, and polling locations for City elections. The board shall be composed 420 of five (5) members, serving three (3) years terms, to be appointed by the Mayor and confirmed by council at 421 the Annual Meeting, or as necessary to fill vacancies as they occur. One member shall be appointed from 422 each district into which the city has been divided for election purposes, and one member shall be appointed 423 on an at-large basis. The City Clerk shall serve as a liaison member of the board. Upon expiration of the 424 term of appointment, a member shall serve until his/her successor has been duly appointed. If a vacancy 425 occurs during the term of any member of the election board, a person residing in the same numbered district 426 shall be appointed to fill the remainder of said term. Members serve without salary, but shall be paid a per 427 diem allowance as specified by City ordinances. 428 To be eligible for appointment to the election board, each prospective member shall be a citizen of the United 429 States, a registered voter within the City, and have resided within the geographical boundaries of the City for 430 one year preceding the appointment. The Mayor and members of Council, their parents, spouse, or children, 431 shall not be eligible for appointment to the election board. 432 (By Resolution Adopted November 12, 1990) 433 All elections shall be held by an the election board. The City Clerk may designate such other persons as he shall 434 deem necessary to assist the members of the election board in the conduct of the election and counting of the 435 ballots. Should any or all of the members of the election board be absent from the place of election at 7:00 a.m. 436 on the day of the election or fail or neglect to act in the conduct of such election during the time the polls are 437 open and until the ballots are counted and the results of the election certified, the voters of the city present at 438 such time may choose from the qualified voters of the city such person or persons as shall he necessary to fill 439 places made vacant by the absence or neglect aforesaid.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 15 440 When the polls are closed, the election board shall publicly count the votes and shall certify the results of the 441 election to each of the persons selected and to the council. The candidate for the office of mayor who receives 442 the highest number of votes cast for that office shall be declared to be elected mayor; the candidate for the office 443 of at-large councilman who receives the highest number of votes cast for that office shall be declared to be 444 elected at-large councilman; and the candidates for the offices of councilmen from each district who receive the 445 highest number of votes cast by voters who reside in that district and cast votes for councilmen of that district 446 shall be declared to be elected to that office. In the event of a tie vote for any office, a special election for said 447 office(s) only shall be held within 30 days and the registration books shall remain closed until the outcome of 448 the special election is determined. 449 Every resident of the City of Dover who shall have reached the age of 18 years by the time of the election and 450 who is properly registered to vote shall be entitled to vote at all regular or special municipal elections. A voter 451 will be considered properly registered to vote if they are properly registered to vote for state elections in 452 accordance with Title 15 of the Delaware Code as amended. 453 The council shall provide for the use of voting machines in all regular and special municipal elections in 454 conformity with Title 15 of the Delaware Code by ordinance duly adopted by council. Voting machines shall 455 be used in accordance with Title 15 of the Delaware Code and by ordinance duly adopted by council. The names 456 of the candidates for each office shall be listed in alphabetical order on the voting machines under the name of 457 the office to which they seek election. The voters shall designate their choice of candidates in accordance with 458 the regular method of operation of voting machines. The council may provide sample ballots plainly marked as 459 such and printed on paper of any color except white to be distributed to any voter or candidate who requests them 460 prior to or during the election. 461 Any qualified voter, duly registered, who shall be unable to appear to cast their ballot at any election either 462 because of being in the public service of the United States or of this state, or because they will be unavoidably 463 absent from the city on the day of the election, or because of his sickness or physical disability may cast a ballot 464 at such election by absentee ballot to be counted in the total of such election. The council may provide the rules 465 and regulations for such absentee voting by ordinance for all elections. 466 (Amd. of 7-12-2005 (S.B. 126)) 467 Sec. 9. Meetings of mayor and council--Generally. 468 At 7:30 p.m. on the second Monday in May following a regular municipal election, the mayor and council shall 469 meet at the usual place for holding council meetings and the newly elected officers shall assume the duties of 470 office, being first duly sworn or affirmed to perform their duties with fidelity. Such meeting shall be called or 471 known as the annual meeting. Thereafter, the council shall hold regular meetings at such times as may be 472 prescribed by ordinance, but not less frequently than once each month. Special meetings may be called and held 473 as prescribed by ordinance. All meetings of the council shall be open to the public except scheduled executive 474 sessions. 475 At the annual meeting held on the second Monday in May, the members of council shall elect one of their 476 members to serve as council president, such term to be in effect until the next regularly scheduled annual meeting 477 or until a successor is elected. The council president shall serve as vice-mayor. Council president shall preside 478 over regular and special council meetings. 479 The mayor shall preside over the annual meeting and quarterly town meetings, and at the annual meeting present

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 16 480 a state of the city message and offer mayoral appointments for council confirmation. The mayor, upon 481 recommendation from the council president, will present council appointments for council approval. 482 In the event of absence of the council president, then the senior member of council in terms of length of service 483 as a councilman shall assume the duties of the council president and shall be designated council president acting. 484 In the event that two or more members of council have the same seniority in terms of length of service as a 485 councilman, then the members of council shall vote and elect one of those as council president acting. Council 486 president acting shall fulfill all of the duties and responsibilities of council president during his period of 487 unavailability or absence. 488 (Amd. of 7-12-2005 (S.B. 126)) 489 Sec. 10. Meetings of mayor and council--Procedure. 490 Five of the members elected to the council shall constitute a quorum to do business, but a less number may 491 adjourn from time to time and may compel the attendance of absent members in such manner and under such 492 penalties as may be prescribed by ordinance. 493 No ordinance, resolution, motion or order shall be valid unless it shall have (1) the affirmative vote of a majority 494 of the members elected to the council, and (2) the written approval of the mayor, or the vice-mayor in those cases 495 where the vice-mayor is authorized to act as mayor as provided in section 15 hereof, provided that in the absence 496 of such approval by the mayor, or the vice-mayor as the case may be, the council may, after not less than seven 497 days nor more than 35 days after the prior vote, pass or adopt the said ordinance, resolution, motion or order 498 which did not receive the approval of the mayor, or the vice-mayor, by the affirmative vote of two-thirds of the 499 members elected to council. 500 Whenever the council shall adopt an ordinance, resolution, motion or order, it shall be the duty of the mayor, 501 or the vice-mayor, to signify his/her approval or disapproval thereof in writing to the clerk of the council within 502 seven days thereafter. The clerk of the council shall forthwith notify the members of the council of such approval 503 or disapproval. 504 Motions to adjourn meetings of council and orders to compel the attendance of absent members shall not require 505 the approval of the mayor or vice-mayor. 506 A councilman may shall abstain from voting on a matter that he feels would involve the consideration of his own 507 official conduct, on a matter in which he has a financial interest, in a matter in which he has a conflict of interest 508 or in accordance with a policy adopted by council. 509 The yeas and nays shall be taken upon the passage of every ordinance and resolution and entered together with 510 the text of the ordinance or resolution upon the journal of the proceedings of the council. The journal shall be 511 deemed conclusive evidence of the facts stated therein except in the case of fraud. 512 In addition to other acts required by law or by specific provision of this charter to be done by ordinance, those 513 acts of the city council shall be by ordinance which: 514 (1) Adopt or amend an administrative code or establish, alter, or abolish any city department, office, 515 or agency; 516 (2) Provide for a fine or other penalty or establish a rule or regulation for violation of which a fine

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 17 517 or other penalty is imposed; 518 (3) Levy taxes; 519 (4) Grant, renew, or extend a franchise; 520 (5) Regulate the rate charged for its services by a public utility; 521 (6) Authorize the borrowing of money; 522 (7) Convey or lease or authorize the conveyance or lease of any lands of the city; 523 (8) Regulate land use and development; 524 (9) Amend or repeal any ordinance previously adopted; or 525 (10) Adopt, with or without amendment, ordinances proposed under the initiative power. 526 Acts other than those referred to in the preceding sentence may be done either by ordinance or by resolution. 527 (Strikeout advised by Deputy City Solicitor Pepper - traditionally done by Resolution) 528 The city council may adopt any standard code of technical regulations by reference thereto in an adopting 529 ordinance. The procedure and requirements governing such an adopting ordinance shall be as prescribed 530 for ordinances generally except that: 531 (1) The requirements for distribution and filing of copies of the ordinance shall be construed to 532 include copies of the code of technical regulations as well as of the adopting ordinance, and 533 (2) A copy of each adopted code of technical regulations as well as of the adopting ordinance shall 534 be authenticated and recorded by the city clerk. 535 Copies of any adopted code of technical regulations shall be made available by the city clerk for distribution 536 or for purchase at a reasonable price. 537 (Amendment Adopted by Council 5/27/2008) 538 Sec. 11. Council to be judge of election results and qualification of members; power to fix procedure. 539 The council shall be the judge of the election results and qualification of its members and, in such cases, shall 540 have power to subpoena witnesses and compel the production of all pertinent books, records and papers; but the 541 decision of the council in any such case shall be subject to review by the courts. The holding over members shall 542 constitute the council for the purpose of determining election contests. The council shall determine its own rules 543 and order of business and keep a journal of its proceedings. It shall have power to compel the attendance of 544 absent members, and may punish its members for disorderly behavior. 545 (Amd. of 7-12-2005 (S.B. 126)) 546 Sec. 12. Compensation; Expenses–Mayor, council members, and other elected or appointed officials. 547 Compensation and expenses--Mayor and council and other elected or appointed officials. 548 The city council shall may determine the annual salary and emoluments of the mayor, and council members, 549 and other elected or appointed officials by ordinance, but no ordinance increasing the salary of the mayor 550 or city council members such salary shall become effective until the date of commencement of the terms of 551 the mayor or council members elected at the next regular election. The mayor and council members shall 552 receive their actual and necessary expenses incurred in the performance of their duties of office. 553 The council shall determine the annual salary and emoluments of the mayor and council and other elected

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 18 554 or appointed officials by ordinance. Members of the council, the mayor and other elected or appointed 555 officials shall receive reimbursement for actual and necessary expenses incurred when on official business 556 as prescribed by city ordinance or policy. 557 (Amd. of 7-12-2005 (S.B. 126)) 558 (Amendment adopted by Council 12/10/2007 with recommendation that a Resolution be adopted 559 establishing the Compensation Commission (see attached Res. No. 2009-10). Staff recommends instead 560 an ordinance amending Article IV. Officers and Employees, Division 1. Generally, Sec. 2-201. 561 Compensation and expenses for mayor, council, employees and other elected or appointed officials, to 562 include Compensation Commission (see Ordinance 2009-04 below). Black text suggested by Deputy City 563 Solicitor) 564 CITY OF DOVER PROPOSED ORDINANCE #2009-04 565 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 566 That Chapter 2 - Administration, Article IV - Officers and Employees, Division 1 - Generally, Section 2-201 - 567 Compensation and expenses for mayor, council, employees and other elected or appointed officials, be amended 568 by inserting the text indicated in bold, blue, italics and deleting the text indicated in red strikeout as follows: 569 Sec. 2-201. Compensation and expenses for mayor, council, employees and other elected or appointed officials. 570 A. In accordance with section 12 of the Charter, authorizing the council to establish compensation and 571 expenses for the mayor and councilmembers, city employees and other elected or appointed officials, the 572 following fees are hereby established: 573 (1) Mayor. The mayor shall receive an annual salary of $45,000.00. In addition, the mayor shall receive 574 an expense allotment of up to $5,000.00, to be included in the city's annual budget, for miscellaneous 575 expenses, to be reimbursed upon submission of receipts or proper documentation. Expenses in excess 576 of this amount shall only be permitted by council approval. The mayor shall be entitled to all benefits 577 customary to an employee of the city, except pension benefits, and sick and vacation leave. 578 (2) Councilmembers generally. Each councilmember shall receive an annual salary of $7,416.00, to be 579 paid monthly. The council president shall receive an annual salary of $8,652.00, to be paid monthly. 580 Councilmembers shall receive reimbursement for actual and necessary expenses incurred when on 581 official business as prescribed by ordinance or policy. 582 (3) Councilmembers hearing appeals. Members of the council sitting to hear appeals from the municipal 583 assessment shall receive $50.00 for per diem reimbursement for expenses for the preparation and 584 attendance of each meeting of the assessment appeals committee. 585 (4) Nonemployee election officers. Each person not a city employee appointed to serve as an election 586 judge for any municipal election shall receive $200.00 for per diem reimbursement for each election 587 attended. Each person chosen to serve as a clerical assistant for any municipal election shall receive 588 $150.00 for per diem reimbursement for each election attended. 589 (5) Employee election officers. Employees of the city appointed to serve as election judges or officials 590 for any municipal election shall receive $150.00 for per diem reimbursement for expenses for each

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 19 591 municipal election attended in addition to their regular salary. 592 (6) Appointee to council committee. Each appointed member to any city council committee, not serving 593 an elected term to any city office, shall receive $75.00 for preparation and attendance at each committee 594 meeting to which the member is appointed. 595 (7) Employee on council committee. For any city employee appointed to a council committee shall 596 receive $25.00 for reimbursement for expenses per diem for each meeting attended which is held after 597 5:00 p.m. on a scheduled workday or at any time on a weekend or city-approved holiday. 598 (8) Planning commission. Each appointed member of the planning commission shall receive $100.00 per 599 diem reimbursement for expenses to be paid monthly for preparation and attendance at each meeting of 600 the planning commission. 601 (9) Board of adjustment. Each appointed member of the board of adjustments shall receive $75.00 per 602 diem reimbursement for expenses to be paid monthly for preparation and attendance at each meeting of 603 the board of adjustment, to become effective July 1, 2007. 604 B. Compensation commission. 605 There is hereby created a compensation commission to consider compensation for the Mayor, City 606 Council, and paid members of City committees and commissions. The compensation commission shall consist 607 of five (5) members, one (1) member appointed by the Mayor, one (1) member appointed by the Council 608 President, and three (3) members appointed by City Council during the Annual Meeting. Members shall be 609 City residents who are registered to vote in City elections. Members shall serve two (2) year terms and cannot 610 be re-appointed within the next two (2) years. The Finance Director and Human Resources Director shall 611 serve as ex-officio, non-voting members. 612 The compensation commission shall meet as needed, with a report due to Council six (6) months prior 613 to the regular municipal election., with At least one (1) public hearing shall be held prior to their submission 614 of the report to Council. Upon receiving the resolution of the commission, the city council may reduce or 615 reject the commission's recommendation, but it may not increase any item in the resolution. The 616 recommendations contained in the resolution, and any permitted changes to such recommendations, shall 617 not become effective unless adopted by ordinance enacted at least three (3) months prior to the elections of 618 the next succeeding Mayor and Council, and shall take effect only for the next succeeding terms of office of 619 the Mayor and Council. 620 Charter references: Mayor and Council, subpart A, § 12. 621 (Strikeout and black, italic text advised by Deputy City Solicitor Pepper) 622 SYNOPSIS 623 The amendment creates a compensation commission to consider compensation for the Mayor, 624 City Council, and paid members of City committees and commissions. 625 Actions History 626 February 23, 2009 - Introduced at LF&A Committee 627 Sec. 13. Vacancies; forfeiture of Office; Filling of Vacancies Filling vacancies for council or mayor.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 20 628 (a) Vacancies. The office of a council member shall become vacant upon the member's death, 629 resignation, or removal from office or forfeiture of office in any manner authorized by law. 630 (b) Forfeiture of Office. A council member shall forfeit that office if the council member: 631 (1) Fails to meet the residency requirements, 632 (2) Violates any express prohibition of this charter, 633 (3) Is convicted of a crime involving moral turpitude, or 634 (4) Fails to attend three consecutive regular meetings of the council without being excused by the 635 council. 636 The loss of residence in the city, the loss of residence in the state, the removal from the district where the 637 member resided at the time of the member's election, in the case of a councilman, or the conviction of any 638 crime involving moral turpitude during the term for which the member was elected, shall create a vacancy 639 in the office either of mayor or councilman. In the case of any such vacancy or of any vacancy created by 640 death, resignation or otherwise for which said vacancy shall be less than six months in duration, the council shall 641 fill such vacancy office shall remain vacant. If such vacancy should be in excess of six months in duration, 642 a special election shall be held to fill such vacancy, this special election to be held no sooner than 30 days from 643 the date of the vacancy, but said special election to be held no later than 60 days after the date of the vacancy. 644 If council fails to call for a Special Election, the Special Election shall be called by the Election Board. 645 (Amendment Adopted by Council 1/28/2008 and 3/24/2008) 646 Sec. 14. Duties of mayor. 647 The mayor shall be the executive and chief official of the city. The mayor shall have the powers and perform 648 the duties conferred and imposed by this Charter and ordinances of the city. The mayor shall preside at the 649 annual meeting of the council and at all quarterly town meetings. The council president shall preside at all other 650 meetings of the council. The mayor shall have no vote on council matters of any nature whatsoever. The mayor 651 is an ex officio member of all committees, but shall have no vote. 652 (Amd. of 7-12-2005 (S.B. 126)) 653 Sec. 15. Council president/vice-mayor, duties of. 654 At each annual meeting, the council shall elect one of their number as council president who shall also serve as 655 vice-mayor. During a vacancy in the office of mayor or during the absence or disability of the mayor, the 656 vice-mayor shall have all the powers and duties of the mayor, except as hereinafter provided. The council 657 president and vice-mayor shall retain his/her right to vote as councilman at all times although he/she may be 658 acting as the mayor, unless the mayors absence appears to be indefinite or extended, in which case council shall 659 pass a resolution appointing the vice-mayor as mayor until the mayor's position is either filled in accordance with 660 section 13 hereof or the mayor returns to his/her duties, which resolution shall provide that the vice-mayor shall 661 have the right to approve or disapprove council action in accordance with section 10 hereof, in which case the 662 vice-mayor shall lose his/her vote as councilman until further action is taken by council. 663 (Amd. of 7-12-2005 (S.B. 126)) 664 Sec. 16. City Clerk of council.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 21 665 The city council shall appoint an officer of the city who shall have the title of city clerk. The city clerk shall 666 give notice of council meetings to its members and the public, keep the journal of its proceedings and perform 667 such other duties as are assigned by this charter or ordinance or by the council or by state law. 668 The council shall choose a clerk, who shall keep a record of the proceedings of the council and perform such 669 other duties and have such powers as may be prescribed by ordinance. 670 (Amd. of 7-12-2005 (S.B. 126)) 671 (Amendment Adopted by Council 3/24//2008) 672 Sec. 17. City Controller/treasurer. 673 At the annual meeting the council shall elect a city controller/treasurer to hold office until the next annual 674 meeting of the council, or until his/her successor has been duly chosen and qualified, but subject to removal at 675 any time by the council. 676 The city controller/treasurer shall be the custodian of all the city funds and shall deposit them in a banking 677 institution designated by the council. 678 (Amd. of 7-12-2005 (S.B. 126)) 679 (Amendment Adopted by Council 3/24//2008) 680 Sec. 18. Ordinances authorized; maximum penalty for violation. 681 The council is hereby vested with the authority to adopt ordinances of every kind relating to any subject coming 682 within the powers and functions of the city, or relating to the government of the city, its peace and order, its 683 sanitation, appearance and beauty, the health, safety, convenience and comfort of its population, and the 684 protection and preservation of property, and to fix and impose and enforce the payment of, fines and penalties 685 for the violation of any such ordinance; provided that no fine or penalty shall exceed the sum of $1,000.00; and 686 no provision in this Charter as to ordinances on any particular subject shall be deemed or held to he restrictive 687 of the power to adopt ordinances on any subject not specifically enumerated. 688 (Amd. of 7-12-2005 (S.B. 126)) 689 (Note from Deputy City Solicitor Pepper: I am not sure that a $1000 cap on fines is appropriate. Fines 690 need to be high enough that they deter bad conduct and are not simply a cost of doing business. 691 Consideration might be given to removing "provided that no fine or penalty shall exceed the sum of 692 $1,000.00") 693 Sec. 19. Power of council to define and abate nuisances. 694 The council shall have power to define nuisances and cause their abatement. The operation of any instrument, 695 device, or machine of any kind whatsoever, that shall cause electrical interference with radio or television 696 reception within the limits of the city shall, at the option of the council, be deemed to be a nuisance. 697 (Amd. of 7-12-2005 (S.B. 126))

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 22 698 Sec. 20. Power of council to provide for fire protection measures. 699 The council shall have power to adopt all measures requisite or appropriate for protection against fire. To this 700 end the council may adopt ordinances prohibiting the use of building materials that the council deem would 701 create a fire hazard, and may zone or district the city and make particular provisions for particular zones or 702 districts with regard to buildings and building materials. This power shall be deemed to embrace new buildings 703 or additions to or alterations of existing structures of every kind. The council shall have the power to condemn 704 any building or structure or portion thereof that it deems to be a health hazard or constitutes a fire menace or to 705 require or cause the same to be torn down, removed, or so altered as to eliminate the health hazard or menace 706 of fire. 707 (Amd. of 7-12-2005 (S.B. 126)) 708 Sec. 21. Power of council to adopt zoning ordinances. 709 The council may adopt zoning ordinances limiting and restricting to specified districts, and regulating therein, 710 buildings and structures according to their construction and the nature and extent of their use. 711 (Amd. of 7-12-2005 (S.B. 126)) 712 Sec. 22. Power of council to regulate construction of buildings and require permits; building inspector 713 authorized. 714 The power of the council to adopt ordinances for the safety of the city and its population shall be deemed to 715 embrace the right to prescribe the height and thickness of the walls of any building and the kind and grade of 716 materials used in the construction thereof. 717 The council may provide for the issuance of building permits and forbid the construction of a new building or 718 the addition to or alteration and repair of an existing building except when a building permit has been obtained 719 therefore. The council may appoint a building inspector and prescribe his/her powers and duties. 720 (Amd. of 7-12-2005 (S.B. 126)) 721 Sec. 23. Power of council to create city planning commission; members generally. 722 The council may create a city planning commission for the development, improvement, and beautification of 723 the city, and prescribe its powers and duties. No member of the planning commission may hold at the same time, 724 any elected city office. 725 Members of any planning commission created by the city shall consist of two members from each council district 726 and one member serving at large. 727 All members of the planning commission must be residents of the City of Dover. 728 Each appointed member of the commission shall receive per diem reimbursement for expenses to be paid 729 quarterly for preparation and attendance at each meeting of the planning commission attended in an amount to 730 be set by council. 731 (Amd. of 7-12-2005 (S.B. 126)) 732 Sec. 24. Power of council to franchise or license public utilities and common carriers.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 23 733 The council shall have the right to grant or refuse franchises or licenses to public utilities and common carriers 734 and fix the terms and conditions thereof and to regulate their use of the streets, lanes, alleys, rights-of-way, and 735 air space or airways of the city. 736 (Amd. of 7-12-2005 (S.B. 126)) 737 Sec. 25. Power of council to operate light, power or water plant. 738 The council shall have power to operate a light, power and water plant for the city, and to do all things necessary 739 for its maintenance and operation. The council may at their option transmit electric current and or water from 740 its said plant to places or properties outside of the city limits upon such terms, charges and conditions as they 741 shall determine. 742 The council shall have power to adopt ordinances, rules and regulations in regard to the use for public or private 743 purposes of electric current distributed and or water furnished by the city and the amount to be paid by the users 744 thereof, and fix fines and penalties for any willful or negligent injury or damage to its water and light plant, and 745 to any objectionable use in connection with its light and water system, and to any interference with or obstruction 746 of the said system. 747 (Amd. of 7-12-2005 (S.B. 126)) 748 Sec. 26. Power of council with reference to sewers. 749 The council shall have superintendence and supervision of the sewers and the sewer system of the city. They 750 shall have power to install any or additional sewers in the city. The council may by condemnation proceedings 751 take for sewer purposes, private land, or the right to use private land under the surface thereof, for the laying of 752 sewer mains. The proceedings by condemnation under this section shall be the same as prescribed by section 753 27 of this Charter with regard to the laying out of new streets, and the resolutions referred to in said section shall 754 be modified to cover the case contemplated by this present section. 755 The council shall have power to make all ordinances, rules and regulations regarding the sewers and sewer 756 system of the city and the use thereof, and may fix fines and penalties for the violation of the provisions of such 757 ordinances. The council may require any property in the city to be connected with the water and sewer mains 758 and to compel the owner of such property to pay the cost of such connection and the tapping fee or charge 759 therefore. The connecting with the water or sewer mains and the tapping thereof shall be under the regulation 760 and control of the council. 761 The council may extend the sewer system of the city to places outside of the city limits upon such terms, charges 762 and conditions as it shall determine. 763 The council is hereby authorized to impose a charge or rent for the use of the sewer system of the city, both 764 within and without the limits of the city, and in addition to the connection or tapping charges. 765 (Amd. of 7-12-2005 (S.B. 126))

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 24 766 Sec. 27. Power of council to layout, locate, abandon, etc., streets, sidewalks, etc. 767 The council shall have power and authority to lay out, locate, accept, and open new streets and to widen and to 768 alter existing streets or parts thereof, and to vacate or abandon streets or parts thereof, whenever they shall deem 769 it for the best interest of the city. 770 Whenever, the land comprehended or included in any street, or part thereof, vacated or abandoned under this 771 section is owned by the city, the council may, in their discretion, sell such land either at private or public sale 772 and for such consideration as the council shall deem proper, and shall have the right and power to convey to the 773 purchaser or purchasers thereof a good and sufficient title thereto. 774 The word "street" shall be deemed and held to comprehend and include sidewalks, lanes and alleys. 775 (Amd. of 7-12-2005 (S.B. 126)) 776 Sec. 28. Power of council to pave streets, sidewalks, etc. and levy assessment for public improvements; 777 municipal lien docket. 778 The council shall have power to pave or repave, or to cause to be paved, or repaved, the streets and sidewalks 779 of the city, or any part or portion thereof, with such material or materials as it shall determine. 780 The power hereby conferred shall be exercised in the following manner, to wit: 781 SIDEWALKS 782 A. The city council, at such time as it shall determine that the condition or conditions of a particular street 783 or streets, or portion thereof, requires that sidewalks be laid, or that the sidewalks then existing, if there be 784 sidewalks laid, should be improved, or upon the petition of a majority of persons owning property along any of 785 the streets, or a portion of any of the streets of the said city, asking that the sidewalks abutting on said street or 786 streets, be improved, or that sidewalks be laid where there are none at the time of the filing of the petition, may 787 direct the property owner or owners to lay or replace sidewalks with such material or materials, as, in the 788 judgment of the said council of the City of Dover, may seem best under the circumstances. 789 It shall be the duty of the city manager to give at least 15 days' notice in writing to the owner or owners of the 790 property affected by the action of the said council. Said notices shall be served in the manner following: A copy 791 thereof shall be delivered personally to the owner or owners of said property, or a copy thereof shall be left with 792 the tenant in possession of the property, or a copy thereof shall be sent by registered mail to the last known post 793 office address of the owner or owners of the said property or properties so affected. Service of such notice by 794 either of said methods shall be sufficient to bind the owner or owners under the provisions of this Charter. 795 It shall be the duty of the owner or owners, after notice shall have been given in either of the ways above 796 designated, to forthwith cause the said sidewalks to be laid or the improvement or alterations thereof to be made, 797 as directed in said notice. 798 Upon the failure of the owner or owners to lay or cause to be laid or improved or altered, the sidewalks or 799 portion thereof, according to the direction of said notice, it shall be the duty of the city manager to cause the said 800 sidewalks to be laid or altered or improved, as the case may be, according to the terms of such notice.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 25 801 STREETS 802 B. The council shall adopt an ordinance or resolution stating, in effect, that on a named day and at a named 803 hour and place, the council will meet to consider the question of paving or repaving, with specified material or 804 materials, the named street in front of the property of named owners, and, of assessing the cost thereof against 805 the owners. Said ordinance or resolution shall be published at least one week prior to the meeting aforesaid in 806 at least one issue of a newspaper published in the city. The council shall hold a meeting in accordance with said 807 ordinance or resolution and shall hear thereat the named owners of property and other residents of the city 808 appearing on the questions presented in said ordinance or resolution. 809 After such hearing, the council shall decide, either at said meeting or at a subsequent meeting, whether or not 810 to proceed with the paving or repaving specified in said ordinance or resolution; provided, however, that the 811 council shall not proceed with such improvement if, at or prior to the hearing aforesaid, the council shall be 812 presented with a written objection thereto signed by a majority of the owners of real property in front of which 813 such paving or repaving was contemplated. The provisions of this subsection, relating to the paving or repaving 814 of streets, shall be deemed to apply to and include curbs and gutters. 815 SPECIAL ASSESSMENTS 816 C. The city shall have the authority to levy and collect special assessments upon property in a limited and 817 determinable area for special benefits accruing to such property as a consequence of any municipal public work 818 or improvement, and to provide for the payment of all, or any part of, the cost of the work, service or 819 improvement out of the proceeds of such special assessments. 820 When the term "owner" or "owners" is used with respect to special assessments, it shall be deemed to mean the 821 person or persons who owned the property in question at the time of the enactment of the assessment ordinance, 822 and, any change in ownership thereafter shall not be deemed to affect any of the steps or proceedings described 823 in this Charter with respect to special assessments. 824 The council shall also have the authority to enact ordinances which provide for the levy and collection of 825 assessments against property owners for the cost of installation of sanitary sewers, storm sewers, water mains, 826 streets, sidewalks, street lights, curbs, gutters and other public improvements. 827 Such ordinances shall prescribe: 828 (1) The basis to determine the amount which shall be assessed upon the properties abutting the public work 829 or improvement; 830 (2) What portion of corner properties shall be considered frontage and what portion side frontage and 831 whether there shall be any exemption on side frontage; 832 (3) Payment provisions providing for payment in installments, except that assessments for current services 833 or service connections shall be payable within one year; and 834 (4) Rules under which individual appeals shall be heard. 835 All special assessments and all water and sewer service charges shall be liens and shall be entered in the 836 municipal lien docket as liens. 837 The council may provide for the payment of special assessments for whatever purpose levied by installments, 838 but assessments for permanent improvements shall be paid in annual or more frequent installments, and, 839 assessments for current services shall be payable within one year.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 26 840 MUNICIPAL LIEN DOCKET 841 D. A docket known as the City of Dover Municipal Lien Docket shall be prepared and maintained by the 842 city manager. The docket shall be substantially the same in form as the judgment docket for Kent County and 843 shall contain an index according to the name of the owner against whom such lien has been assessed. All taxes 844 and all charges for water service, sewer service, garbage service, electric service, grass cutting services and 845 debris removal, dangerous building ordinance costs and assessments, special assessments for municipal 846 improvements of any nature, and all other charges or assessments made by the city against property owners may 847 be recorded in the municipal lien docket and shall be and constitute a lien upon all of the real estate of the taxable 848 against or upon whom such taxes and/or charges are laid or imposed, of which such taxable was seized at any 849 time after such taxes and/or charges have been levied and imposed, situate in the City of Dover. All liens so 850 recorded shall continue in full force and effect until the same plus accrued costs have been paid in full. Upon 851 payment in full of the lien and all costs, it shall be the duty of the city manager to enter forthwith upon the docket 852 the date of final payment and the words 'satisfied in full." Failure to record liens in the municipal lien docket 853 shall not affect liens otherwise provided for in 25 Del. section 2901, et seq. 854 (Amd. of 7-12-2005 (S.B. 126)) 855 Sec. 29. Streets, sidewalks, etc. to be under control of council; power of council to prescribe grades 856 thereon and regulate. 857 The streets, sidewalks, lanes and alleys in the city shall be under the supervision, management and control of 858 the council, and the council may prescribe the grades thereof and adopt ordinances regulating the use thereof 859 and the traffic thereon. 860 (Amd. of 7-12-2005 (S.B. 126)) 861 Sec. 30. Power of council to provide for disposal of garbage and sewage. 862 The council shall have power to provide for the incineration or other sanitary disposal of litter, debris, refuse, 863 garbage and sewage. 864 (Amd. of 7-12-2005 (S.B. 126)) 865 Sec. 31. Power of council to regulate parking and provide parking lots. 866 The council shall have power to adopt ordinances regulating the parking of automobiles and motor vehicles 867 within the city, and may lease or purchase land to be used for parking purposes. 868 (Amd. of 7-12-2005 (S.B. 126)) 869 Sec. 32. Council to determine salaries of city appointees and employees. 870 The salaries or emoluments of all city appointees and city employees shall be determined by the council through 871 the pay system and collective bargaining agreements as amended. 872 (Amd. of 7-12-2005 (S.B. 126))

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 27 873 ARTICLE III. CITY MANAGER 874 Sec. 33. The city manager generally. 875 The council shall appoint a city manager who shall be the chief administrative officer of the city. The city 876 manager need not, when appointed, be a resident of the city or the state. No member of the council shall, during 877 the time for which elected, be chosen as city manager. The manager shall be appointed for an indefinite term but 878 shall be removable at the pleasure of the council. Before the manager may be removed he/she shall, if he/she so 879 demand, be given a written statement of the reasons alleged for his/her removal and the right to be heard publicly 880 thereon at a meeting of the council prior to the final vote on the question of his/her removal, but pending and 881 during such hearing the council may suspend him/her from office. The action of the council in suspending or 882 removing the manager shall be final, it being the intention of this Charter to vest all authority and fix all 883 responsibility for such suspension or removal in the council. In case of the absence or disability of the manager 884 the council may designate some qualified person to perform the duties of the office during such absence or 885 disability. 886 (Amd. of 7-12-2005 (S.B. 126)) 887 Sec. 34. Responsibility of manager; powers of appointment and removal. 888 The city manager shall be responsible to the council for the proper administration of all affairs of the city placed 889 in his/her charge, and to that end, except as otherwise provided herein, he/she shall have the power to appoint 890 and remove all employees in the administrative service of the affairs of the city under his/her charge. All such 891 appointment shall be without definite term. 892 (Amd. of 7-12-2005 (S.B. 126)) 893 Sec. 35. Removal of employees by manager. Appointments and Removals. 894 Employees appointed by the city manager, or under his/her authorization, may be removed by him/her 895 at any time. The decision of the manager in any such case shall be final and there shall be no appeal 896 therefrom to any other officer, body or court whatsoever. 897 Neither the city council nor any of its members shall in any manner control or demand the appointment or 898 removal of any city administrative officer or employee whom the city manager or any subordinate of the city 899 manager is empowered to appoint, but the council may express its views and fully and freely discuss with the 900 city manager anything pertaining to appointment and removal of such officers and employees. The city 901 administrative officers and employees can be assured of due process in accordance with 19 Del. C. 902 (Amd. of 7-12-2005 (S.B. 126)) 903 (Amendment Adopted by Council 12/10/2007) 904 Sec. 36. Council not to interfere with appointments or removals of manager; giving orders to subordinates 905 of manager prohibited; penalty for same. Interference with Administration. 906 Except for the purpose of inquiries, and investigations by council under Sec. 39, the council or its members 907 shall deal with city officers and employees who are subject to the direction and supervision of the city 908 manager solely through the city manager, and neither the council nor its members shall give orders to any 909 such officer or employee, either publicly or privately.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 28 910 Neither the council nor any of its committees or members shall direct or request the appointment of any 911 person to, or removal from, office by the city manager or any of his/her subordinates, or in any manner 912 take part in the appointment or removal of employees in the administrative service of the affairs of the 913 city under the charge of the manager. Except for the purpose of inquiry, the council and its members shall 914 deal with that portion of the administrative service for which the manager is responsible solely through 915 the manager, and neither the council nor any member thereof shall give orders to any subordinate of the 916 city under the city manager either publicly or privately. Any violation of the provisions of this section by 917 a member of the council shall be a misdemeanor, conviction of which shall immediately forfeit the office 918 of the member so convicted. 919 (Amd. of 7-12-2005 (S.B. 126)) 920 (Amendment Adopted by Council 1/28/2008) 921 Sec. 37. Duties of the manager. 922 It shall be the duty of the city manager to supervise the administration of the affairs of the city under his/her 923 charge; to make such recommendations to the council concerning the affairs of the city as may seem to him/her 924 desirable; to keep the council advised of the financial conditions and future needs of the city; to prepare and 925 submit to the council the annual budget estimate; to prepare and submit to the council such reports as may be 926 required by that body; and to perform such other duties as may be prescribed by this Charter or required of 927 him/her by ordinance or resolution of the council. 928 (Amd. of 7-12-2005 (S.B. 126)) 929 Sec. 38. Right of manager to sit in council meetings. 930 The city manager and such other officers of the city as may be designated by vote of the council, shall be entitled 931 to seats in the council, but shall have no vote therein. 932 (Amd. of 7-12-2005 (S.B. 126)) 933 Sec. 39. Investigations by council. 934 The city council may make investigations into the affairs of the city and the conduct of any city department, 935 office, officer, employee, or agency and for this purpose may subpoena witnesses, administer oaths, take 936 testimony, and require the production of evidence. Failure or refusal to obey a lawful order issued in the 937 exercise of these powers by the council shall be a Class A misdemeanor punishable by existing State Law. 938 The council shall have power to inquire into the conduct of any office, officer or employee of the city and 939 to make investigations as to municipal affairs, and for that purpose may subpoena witnesses, administer 940 oaths, and compel the production of books, papers and other evidence. 941 (Amd. of 7-12-2005 (S.B. 126)) 942 (Amendment Adopted by Council 3/24/2008) 943 Sec. 40. Other functions of city manager. 944 The city manager shall have charge of the light and water plant operated by the city, and of the light and water 945 and sewer systems of the city. The city manager shall have charge of the supervision of the streets, gutters, curbs 946 and sidewalks of the city and of all work relating thereto. The city manager shall have charge of the

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 29 947 administration of all provisions of this Charter and ordinances and regulations of the council relating to affairs 948 of the city, when not otherwise provided for by this Charter or by any ordinance or resolution of the council. The 949 city manager shall ex officio be the collector of taxes for the city. It shall be his/her duty to collect all water rents 950 and fees for the tapping of water mains and sewers, all charges for electric current and all city revenue from any 951 source whatsoever. The city manager shall pay over to the city controller/treasurer at least monthly, and oftener 952 if required by council, all moneys received or collected by him/her and by any employee under him/her. 953 The city manager shall keep a full and strict account of all moneys received and all transfers made by him/her 954 to the city controller/treasurer and such accounts shall be at all times open to inspection by the council. The city 955 manager shall make such reports and at such times as the council shall direct. 956 (Amd. of 7-12-2005 (S.B. 126)) 957 Sec. 41. 958 This section has been intentionally left blank. 959 ARTICLE IV. FINANCIAL AFFAIRS 960 Sec. 42. Signing of warrants. 961 The city controller/treasurer shall pay out no money except upon warrant signed by the city manager and 962 countersigned by the mayor. 963 The mayor and the city manager shall sign no warrants on the city controller/treasurer except pursuant to 964 appropriations or resolutions theretofore made by the council. 965 The city controller/treasurer shall keep a true and detailed account of all moneys received and of all moneys paid 966 out by him/her.530 The City controller/treasurer shall preserve all vouchers for moneys paid by him/her. His/her 967 books and accounts shall at all times be open to inspection by the council or the mayor or the city manager. 968 The city controller/treasurer shall make such reports and at such times as the council may direct. 969 The city controller/treasurer shall be required to give bond in such amount and in such form and with such 970 surety as the council shall determine or approve. 971 Sec. 43. Fiscal year. 972 The fiscal year of the city shall begin the first day of July and shall end with the next succeeding thirtieth day 973 of June. 974 Sec. 44. Annual budget. 975 On or before the second Monday of May of each year, the city manager shall prepare and submit to the council, 976 a budget, presenting a financial plan for conducting the affairs of the city for the ensuing fiscal year. The total 977 of proposed expenditures shall not exceed the total of anticipated income.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 30 978 The budget shall include the following information: 979 1. A detailed statement showing the expenses of conducting each department and office of the city for the 980 current year and last preceding fiscal year. 981 2. A detailed estimate of the expenses of conducting each department and office of the city for the ensuing 982 fiscal year with reasons for the increases and decreases recommended. 983 3. The amount of the debt of the city together with a schedule of maturities of bond issues. 984 4. A statement showing the amount required for interest on the city debt and for paying off any bonds 985 maturing during the year and the amount required for the sinking fund. 986 5. An itemized statement of all anticipated income of the city with a comparative statement of the amounts 987 received by the city from each of the same or similar sources for the last preceding and current fiscal years. 988 6. An estimate of the amount of money to be received from taxes. 989 7. Such other information as the city manager may think desirable or as may be required by the council. 990 The council shall on or before the second Monday in the month of June in each year adopt a budget for the 991 succeeding fiscal year. The council shall, so far as possible, adhere to the budget so adopted in the making of 992 appropriations. 993 Sec. 45. Payment of claims; issuance of warrants after approval of city manager; reports by manager 994 thereon to council. 995 No claim against the city shall be paid except on an order on the controller/treasurer, signed by the city manager, 996 and approved and countersigned by the mayor. The city manager shall examine all payrolls, bills and other 997 claims and demands against the city and shall issue no warrant for payment, unless he/she finds that the claim 998 is proper and in proper form and correctly computed. 999 (Amd. of 7-12-2005 (S.B. 126)) 1000 Sec. 46. Annual audit. 1001 Annually in the month of July the council shall have the finances of the city and the books and accounts of the 1002 city manager and the city controller/treasurer audited by a certified accountant. 1003 As soon as practicable after such audit has been completed, the council shall cause to be made and published 1004 a report of the city's finances for the preceding fiscal year. 1005 Sec. 47. General assessment and levy on utility property. 1006 The city shall cause to be made a true, just, and impartial valuation and assessment of all real property within 1007 the city, locating each parcel of real property by street and number or other description. The valuation and 1008 assessment shall be made every three years by an assessor or assessors who shall be elected by the Council at 1009 its annual meeting by majority vote thereof. An assessor must be a freeholder within the corporate limits of the 1010 city. Before entering upon the duties of office, an assessor shall be sworn or affirmed by the mayor to perform

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 31 1011 the duties of the assessor's office with fidelity and without favor or partiality. 1012 Whenever council shall direct, all real property in the City of Dover shall be assessed by a certified independent 1013 outside appraiser chosen by council. This assessment shall be in lieu of the valuation and assessment made by 1014 a freeholder assessor elected by council as described hereinabove and in lieu of the assessor's duties described 1015 hereinabove. 1016 In addition to an assessment every three years, the assessor or assessors shall include supplemental assessments 1017 made annually for the purposes of (1) adding property not included in the last assessment or (2) increasing or 1018 decreasing the assessment value of property which was included in the last general assessment. 1019 The assessment made every three years and any supplemental assessments made annually shall be made prior 1020 to the first day of May in any given year and shall be known as the general assessment. 1021 The general assessment shall be set down by the assessor or assessors in two or more copies, as the council shall 1022 direct, and shall be delivered to the council as soon as made. The council shall, prior to the fifteenth day of May 1023 of each year, cause a copy of the general assessment to be posted in two public places in the city for ten days. 1024 The council may direct that appeals from any general assessment be heard by a committee of not less than three 1025 council members appointed by the council president. The committee of council members shall sit at a stated 1026 place and time to hear the appeals of all taxpayers dissatisfied with the assessment of their properties, shall 1027 collect such information as they consider proper and necessary, and shall report their findings and 1028 recommendations to a meeting of the full council. At the meeting of the full council the recommendations of the 1029 committee shall he received, together with such other information as the council shall permit or require, and the 1030 appeal of each dissatisfied taxpayer shall be heard. The council shall have full power to correct, revise, alter, add 1031 to, deduct, and take from the general assessment. The decision of a majority of the Council members elected 1032 shall be final and conclusive. A council member may not vote on his or her own appeal. 1033 Notice of the place and time that a committee of council members will sit to hear appeals and of the place and 1034 time that the full council will sit to act on such appeals shall be posted with the general assessment in two public 1035 places for a period of ten days. Notice of the posting of the copies of the general assessment and of the place and 1036 time of the meetings of the committee of council members and of the full council to hear appeals shall be 1037 published in at least one issue of a newspaper published in the city. 1038 The assessment as revised and adjusted by the council shall be the basis for the levy and collection of taxes for 1039 the city. 1040 The council shall have the right to levy and collect taxes on gas mains, telephone, telegraph, communications 1041 systems, or trolley poles or other erection of like character within the limits of the city, together with the wires 1042 thereon strung; and to this end the council may at any time direct the same to be included in or added to the 1043 general assessment. 1044 Nothing contained in this section shall be deemed or held to invalidate or otherwise effect any assessment made 1045 prior to the approval of this section or any tax levied thereunder. 1046 (Amd. of 7-12-2005 (S.B. 126))

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 32 1047 Sec. 48. Maximum budget. 1048 The council shall in the month of June of each year determine the amount of money to be raised for the city for 1049 general purposes for the next fiscal year not exceeding two percent of the total taxable assessment for a general 1050 tax, and shall also determine the amount of money required to be raised in such year by the city for interest, 1051 sinking fund and redemption of the bonds of the city. A reasonable sum for delinquencies, discounts and costs 1052 of collection may be added by the council to the amounts aforesaid. The amounts determined as aforesaid 1053 together with any additional sum or sums authorized to be levied and collected, as in this section hereinafter 1054 provided, shall he levied and collected by the council on the property and persons assessed as aforesaid and in 1055 accordance with such assessment and according to a rate established by the council. 1056 Sec. 49. Payment and collection of taxes; errors and delinquents in assessments. 1057 All taxes shall he paid to the collector of taxes. For all taxes not paid on or before July 31st in the calendar year 1058 that they are assessed, there shall be added and collected a reasonable penalty. 1059 It shall be the duty of the collector of taxes to proceed forthwith to collect all taxes unpaid by the first day of 1060 October in the calendar year that they were assessed and in the collection of said taxes he/she shall have all the 1061 powers conferred upon or vested in the Receiver of Taxes and County Treasurer for Kent County. 1062 The council shall have the authority to allow errors and delinquents in the assessment. 1063 The provisions of § 8705, title 9 of the Delaware Code shall be deemed and held to apply to all taxes laid and 1064 imposed under the provisions of this Charter. 1065 Sec. 49A. Assessment, payment, and collection of taxes for new construction. 1066 In the event that the mayor and council of the City of Dover desire to collect and levy taxes on newly constructed 1067 property not taxed by virtue of the city's annual assessment, the city may enact an ordinance to do so provided 1068 that: At the beginning of each quarter of each year, there shall be a true, just, and impartial valuation and 1069 assessment of all newly constructed real property within the city, locating each parcel of real property by street 1070 and number or other description. Property shall be deemed to be newly constructed when the city permits 1071 occupancy and use. The said valuation and assessment shall be made by an assessor or assessors who shall be 1072 elected by council in accordance with the provisions set forth in section 47 of this Charter. 1073 The aforementioned assessment shall be during the months of January, April, July, and October of each year. 1074 The aforementioned assessment shall be deemed a general assessment for all property with new construction. 1075 The council may direct appeals from any general assessment for new construction in accordance with section 1076 47 of this Charter. 1077 Nothing in this section contained shall be deemed or held to invalidate or otherwise affect any assessment made 1078 prior to the approval of this section or any tax levied thereunder. 1079 All taxes shall be paid to the collector of taxes. Said taxes shall be paid within 30 days of billing and those taxes 1080 not paid shall accrue a penalty in the amount of one and one-half percent per month. For every tax that is not 1081 paid as prescribed herein, the tax collector shall have all the powers conferred upon or vested in the Receiver 1082 of Taxes and County Treasurer for Kent County. 1083 The council shall have the authority to allow errors and delinquents in the assessment.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 33 1084 The provisions of 9 Del. C. § 8705 and 25 Del. C. §§ 2901 through 2905, as they may from time to time be 1085 amended, shall be deemed and held to apply to all taxes laid and imposed upon the provisions of this Charter. 1086 Sec. 50. Debt limit. 1087 (a) Whenever the needs of the city shall require more money than is at the time in the city treasury from 1088 current receipts, the council shall be authorized and empowered to anticipate current revenue by borrowing such 1089 sums as shall be needed not in excess of one percent of the total taxable assessment for a general tax. The amount 1090 so borrowed shall be paid back out of current revenue received thereafter. 1091 To exercise the power aforesaid the council shall adopt a resolution to that effect, which resolution shall require 1092 the affirmative vote of at least three-fourths of all the members of the council, and the approval of the mayor. 1093 The indebtedness created under this section shall he evidenced by the bond, or note, of the city, and the faith and 1094 credit of the city shall be deemed to be pledged thereby. 1095 (b) The mayor and council is hereby authorized and empowered to borrow from time to time on the faith and 1096 credit of the City of Dover sums of money for such purposes as may be deemed necessary and proper by the 1097 mayor and council of the said city which purpose shall be consistent with the powers conferred upon the mayor 1098 and council of the City of Dover by the Charter thereof, as amended, for the management and maintenance of 1099 the said city and for these purposes the mayor and council shall have full power and authority to issue bonds of 1100 the said "City of Dover." 1101 The aggregate of the amounts so borrowed together with all other bonded indebtedness for which the full faith 1102 and credit of the City of Dover has been pledged shall not at any time exceed a sum equal to 5 percent of the total 1103 assessed value of real property situate within the bounds of the City of Dover as such boundaries shall from time 1104 to time appear. 1105 The said bonds shall be issued in one or more series, shall bear such date or dates, shall mature at such time or 1106 times, shall bear interest at such rate or rates, shall be payable at such time or times, and at such place or places, 1107 shall be in such denominations, and shall contain such other provisions as the mayor and council may provide 1108 and shall be set forth in the said bonds. Said bonds may or may not be coupon bonds and may he registered or 1109 otherwise as the mayor and council deem advisable. 1110 The mayor and council shall direct and effect the preparation and sale of said bonds at such time or times, at such 1111 price or prices, and upon such terms as the said mayor and council deem advisable, and all the monies arising 1112 from the sale of said bonds shall be used for the municipal purposes of the City of Dover specified in the 1113 resolution authorizing their issue. 1114 The form of said bonds and of any coupons which may be thereunto attached shall be as prescribed by the mayor 1115 and council, and all such bonds shall be signed by the mayor and the treasurer of the City of Dover and sealed 1116 with the corporate seal thereof. Facsimile signatures of the mayor and treasurer and a facsimile of the corporate 1117 seal may be imprinted upon such bonds and any coupons attached to said bonds in lieu of the signatures of the 1118 said mayor and treasurer in their own handwriting and of the affixing of the corporate seal itself. 1119 Said bonds of the City of Dover shall be exempt from all state, county and municipal taxes.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 34 1120 The mayor and council of the City of Dover are hereby authorized and required to levy and raise by taxation in 1121 each and every year such sums of money as may be required to pay the interest accrued on said bonds while all 1122 or any of said bonds remain unpaid, and the said mayor and the city council are further authorized and required 1123 to levy and raise by taxation, from time to time such sum or sums of money as shall be needed to establish such 1124 sinking funds as the said mayor and the city council may at their discretion authorize for the redemption of said 1125 bonds, or any of them, at or before their maturity and such sum or sums of money as shall be required to 1126 otherwise redeem any or all or said bonds at or before their maturity. Taxes for interest and for redemption of 1127 said bonds shall be levied and raised as taxes for general municipal purposes in the said city are levied and raised 1128 and shall be in addition to those levied and raised for any and all other municipal purposes. 1129 A statement appearing in the bonds issued under the provisions of this section to the effect that the bonds have 1130 been duly authorized shall be deemed and held to be conclusive evidence in favor of the lawful holder of any 1131 such bonds that the terms and conditions of this section have been fully met and complied with. 1132 (c) Bonds may he authorized and issued pursuant to subsection (b), without a referendum vote, by a 1133 resolution of the council which shall have the affirmative vote of three-fourths of the members thereof and the 1134 approval of the mayor, for the following purposes: 1135 (i) To finance public storm sewers, streets and appurtenances provided that no more than 1136 1/4 of one percent (.25%) of taxable assessed value of real property of aggregate principal 1137 amount of bonds may be issued at any one time pursuant to this clause and any new bonds 1138 issued pursuant to this clause may not cause the total aggregate principal amount of bonds 1139 outstanding at any one time to exceed one percent of the total taxable assessment for a general 1140 tax at the time such new bonds are issued; and 1141 (Adopted by City Council February 26, 2009) 1142 (ii) To refund bonds secured by the city's full faith and credit, prior to their stated maturity, provided that 1143 (A) the present value of the aggregate principal and interest payments of the refunding bonds are not 1144 greater than the present value of the aggregate principal and interest payments on the bonds to be 1145 refunded determined by discounting at the effective interest rate on the refunding bonds, calculated based 1146 on the internal rate of return: and (B) at the time of issuance of the refunding bonds there are deposited 1147 in escrow, pledged to secure the refunded bonds, sufficient monies and/or direct obligations of, or 1148 obligation the principal of and interest on which are guaranteed by, the United States government, which, 1149 without regard to any reinvestment earnings, will be sufficient to pay when due all interest, principal and 1150 redemption price on the refunded bonds at maturity or upon earlier call for redemption. 1151 (d) Except for bonds issued pursuant to subsection (c) hereof, all bonds issued under the provisions of 1152 subsection (b) shall first be approved by a referendum vote of the qualified voters (as herein defined) of the City 1153 of Dover. 1154 Notice of the holding of such referendum election shall be authorized by resolution of the mayor and council, 1155 published once a week, for at least three consecutive weeks in at least one newspaper circulated in the City of 1156 Dover, Delaware. Such notice shall be set out in summary form the amount and purposes of such bond issue, 1157 the date and place of holding the referendum election and the hours the polls will be open. 1158 At said referendum election "qualified voter" shall mean every natural person who is a resident or a nonresident

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 35 1159 taxable of the city, of the age of 18 years or upwards. Each qualified voter shall be eligible to vote and shall have 1160 one vote. 1161 The city assessor or his/her designee shall attend the election with the last city assessment and tax payment 1162 records for the inspection of the election officers. The referendum election shall be held at such date as the mayor 1163 and council shall designate. The referendum election shall be held at such suitable place in said city as the mayor 1164 and council shall designate in said published notice. The polls shall be open from 7:00 a.m. (local time), and 1165 shall close at 8:00 p.m. (local time). The judge of the election shall, in the case of a tie vote on the bond issue, 1166 cast the deciding vote, otherwise judge of the election shall refrain from voting, but the election clerks may vote. 1167 The total votes cast for and the total votes cast against the bond issue shall be certified as correct by at least two 1168 of the election officers and delivered to the mayor, or to the clerk of council immediately after the total vote 1169 count has been certified. 1170 The mayor and council shall at the next regular meeting after the election, or at a special meeting, receive the 1171 results of the referendum election and make the same a part of the minutes of said meeting, whereupon if a 1172 majority of the votes cast were for the bond issue bonds herein provided for may be issued and sold as provided 1173 in subsection (b), but if at such referendum election the majority of the votes cast were against the bond issue, 1174 then no bonds shall be issued nor shall any money be borrowed pursuant to the resolution submitted to the 1175 referendum. 1176 (e) In addition to the power otherwise granted in this section, the mayor and council may issue special 1177 assessment revenue bonds to finance those public projects for which the city may levy and collect special 1178 assessments pursuant to section 28 of this Charter. Such bonds shall not obligate the faith and credit of the city, 1179 but shall be payable solely from the proceeds of the special assessments which are pledged to the payment 1180 thereof. Such bonds shall be authorized without a referendum vote by a resolution of the council which shall 1181 have the affirmative vote of three-fourths of the members thereof and the approval of the mayor. 1182 (f) After authorization of the sale of bonds as provided in this section and in anticipation of the sale and 1183 issuance of said bonds, the mayor and council may borrow money and issue notes of the city for the purpose and 1184 to the extent of the amount of bonds authorized to be sold, less the amount of any bonds theretofore issued under 1185 such authority. The said borrowing shall be authorized by a resolution of the council which shall have the 1186 affirmative vote of three-fourths of the members thereof and the approval of the mayor, and the note or notes 1187 thereby authorized shall be signed by the mayor and treasurer of the city. When issued and signed in accordance 1188 with this subsection (f), the faith and credit of the city shall be deemed to be pledged for the repayment of all 1189 said notes, except those issued pursuant to subsection (e) hereof. 1190 The note or notes issued in anticipation of a bond issue may be renewed from time to time, but the proceeds of 1191 the sale of such bonds shall, to the extent necessary, be first used to pay and retire such notes. Said notes may 1192 be deemed at par and accrued interest at any time prior to their maturity if the right so to do shall have been 1193 reserved. 1194 (g) For the purposes of the debt limitations prescribed in this section, (i) any bonds which have been 1195 refunded pursuant to subsection (c)(ii) shall be treated as no longer outstanding; and (ii) bonded indebtedness, 1196 principal amount of bonds and bonds outstanding shall be determined without regard to original issue discount. 1197 ARTICLE V. MISCELLANEOUS PROVISIONS

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 36 1198 Sec. 51. Trees. 1199 Trees being among the chief beauties of the city, and their preservation requiring that they be treated with special 1200 care and intelligence, the city manager is empowered to appropriate annually an amount of money adequate for 1201 their care and preservation. The city manager may he given authority to take necessary or appropriate action to 1202 prevent injuries to trees from electric wires or from any other source or cause whatsoever, and to combat the 1203 pests and diseases to which they are subject, and when necessary to employ tree experts provided that they do 1204 not exceed the appropriation made by the council. 1205 (Amd. of 7-12-2005 (S.B. 126)) 1206 Sec. 52. 1207 This section intentionally left blank. 1208 Sec. 53. Police; mayor to be conservator of peace. 1209 There shall be a city police force, the number thereof and their salaries shall be determined by the council, but 1210 they shall be chosen and appointed by the mayor. The mayor is hereby vested with all the powers of a 1211 conservator of the peace within the city limits. The mayor shall appoint a chief of police subject to removal at 1212 any time by the mayor in accordance with applicable laws. The members of the police force shall be subject to 1213 his/her direction and orders delivered through the proper chain of command and in accordance with applicable 1214 laws and ordinances. They shall preserve peace and order, and compel obedience within the city limits to the 1215 ordinances of the city and the laws of the state. They shall have such other duties as the council and the mayor 1216 shall prescribe by ordinance. 1217 Each member of the police force shall be vested with all the power and authority within the city limits and within 1218 one mile outside of said limits, (and, in the case of the pursuit of an offender, without limit) of a constable of 1219 Kent County. 1220 (Amd. of 7-12-2005 (S.B. 126)) 1221 Sec. 54. City solicitor. 1222 At the annual meeting the council shall elect a city solicitor for the term of one year or until his/her successor 1223 has been duly chosen and qualified. 1224 The city solicitor may be removed during his/her term by a vote of three-fourths of the members elected to the 1225 council. 1226 The city solicitor shall be an attorney at law who shall have practiced in the State of Delaware for at least five 1227 years. The city solicitor shall be the chief legal adviser of and attorney for the city. It shall be his/her duty, either 1228 personally or by such assistants as they may designate, to attend meetings of the council; to give advice in 1229 writing, when so requested, to the council or the city manager to prosecute or defend, as the case may be, all suits 1230 or cases to which the city may be a party; to prosecute for all offenses against the ordinances of the city and for 1231 such offenses against the laws of the state as may be required of him/her by law; to prepare all contracts, bonds 1232 and other instruments in writing in which the city is concerned, and to endorse on each his/her approval of the 1233 form and correctness thereof; and to perform such other duties of a legal nature as the council may by ordinance 1234 require. In addition to the duties imposed upon the solicitor by this Charter or required of him/her by ordinance 1235 or resolution of the council he/she shall perform any duties imposed upon the chief legal officers of 1236 municipalities by law.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 37 1237 At the annual meeting the council shall elect a deputy city solicitor for the term of one year or until his/her 1238 successor has been duly chosen and qualified. The deputy city solicitor shall be an attorney-at-law entitled to 1239 practice law in the State of Delaware, and shall serve in such manner as shall be determined by the city solicitor 1240 to be necessary and proper. 1241 Sec. 55. Powers of Town of Dover or town council conferred on city or city council. 1242 All powers conferred upon or vested in the Town of Dover and or the Town Council of the Town of Dover by 1243 any act or law of the State of Delaware not in conflict with the provisions of this Charter, are hereby expressly 1244 conferred upon and vested in the City of Dover and or the mayor and council of the City of Dover, precisely as 1245 if each of the said powers was expressly repeated in this Charter. 1246 Sec. 56. Ordinances passed by town council continued in effect. 1247 All ordinances adopted by the Town Council of the Town of Dover and in force at the time of the approval of 1248 this Charter are continued in force until the same or any of them shall be repealed, modified or altered by the 1249 city council under the provisions of this Charter. 1250 Sec. 57. Officers of town to be initial city officers; prior actions of town council ratified. 1251 The mayor and members of council at the time of approval of this enactment of this Charter shall retain their 1252 elected terms of office until re-elected or failure to be re-elected under the provisions and terms established 1253 herein. 1254 All the acts and doings of the Council of the Town of Dover or of any officials of the said town lawfully done 1255 or performed under the provisions of any law of this state or of any ordinance of the council of the said town, 1256 prior to the approval of this Charter are hereby ratified and confirmed. 1257 Sec. 58. Debts due to town to be due to city; impairment of bonds. 1258 All taxes, debts, fines or penalties and forfeitures due the Town of Dover shall be deemed to be due the City of 1259 Dover, and all debts due from the said Town of Dover shall be deemed to be debts of the City of Dover, and the 1260 same imposed under the provisions of this Charter shall be deemed to apply and extend to all unpaid taxes 1261 imposed by the Town Council of Dover. 1262 The bonds given by or on account of any official of the Town of Dover shall not be impaired or affected by the 1263 provisions of this Charter. 1264 Sec. 59. Printed copies of ordinances and resolutions to be proper evidence. 1265 Printed copies of the ordinances and resolutions of the City Council of Dover, published by authority of the 1266 council, shall be admitted as evidence thereof in all courts, and in pleading it shall not be necessary to recite or 1267 draw them out at large. 1268 Sec. 60. Repeal of prior acts. 1269 All acts or parts of acts inconsistent with or in conflict with the provisions of this Charter are hereby repealed. 1270 Sec. 61. Severability.

CITY OF DOVER - CHARTER AMENDMENTS IN FULL CONTEXT PAGE 38 1271 If any part of this Charter, as it may from time to time be amended, are held to be unconstitutional, such holding 1272 shall not be deemed to invalidate the remaining portions of this Charter or amendments thereto.