Attachment

LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA April 27, 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. Review and Recommendation - Filling Critical Positions 2. Recommendations - Phase II of the MAG Study 3. Proposed Ordinances A. 2009-05 - Chapter 102 - Taxation B. 2009-09 - Consolidation of Fees - Appendix F 4. Recommendations of Civilian Pension Board A. Scope of Work and Cost Estimate Analysis of Re-opening the Defined Benefit Plan B. Recommendation of Civilian Pension Board - Cost of Living Adjustment (COLA) 5. Adjournment by 7:00 P.M. /tm S:\ClerksOffice\PACKETS\2009\Committee\LF&A\04-27-2009\04-27-2009 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 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 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-

Overview of Scoring Using MAG Software April 8, 2009 By Kim Hawkins Parks and Recreation Director City Manager Planning Director 2003 2008 2003 2008 2003 2008 Organizational Value n/a 4 Organizational Value n/a 0 Organizational Value n/a 7 Data 7 7 Data 10 10 Data 9 7 People 9 9 People 10 10 People 9 8 Assests 8 8 Assests 10 10 Assests 5 7 Experience 7 7 Experience 10 9 Experience 8 7 Education 5 5 Education 5 7 Education 7 7 Math 5 5 Math 7 8 Math 6 6 Communications 7 7 Communications 9 9 Communications 7 7 Judgement 7 7 Judgement 10 10 Judgement 9 9 Complexity 7 7 Complexity 9 9 Complexity 9 9 Impact of Decisions 7 7 Impact of Decisions 9 9 Impact of Decisions 8 8 Physical Requirements 2 2 Physical Requirements 2 3 Physical Requirements 2 2 E i quipment Usage 4 4 E i quipment Usage 2 7 Equipment Usage 9 3 Unavoidable Hazards 1 1 Unavoidable Hazards 1 2 Unavoidable Hazards 2 2 Safety of Others 5 5 Safety of Others 9 9 Safety of Others 6 2 EAC (Market Adjustment) 0 0 EAC (Market Adjustment) 225 0 EAC (Market Adjustment) 0 0 Total Points as determined Total Points as determined Total Points as determined by MAG software 1588 1867 by MAG software 2765 2854 by MAG software 1952 2121 Grade 129* 132 Grade 139* 139 Grade 133* 134 *Downgraded to 128 *Downgraded to 137 *Downgraded to 131

Management Advisory Group, Inc. MULTI-DIMENSIONAL EVALUATION CRITERIA© QUICK REFERENCE GUIDE 1 Management Advisory Group © 2007Proprietary and Confidential

GUIDE TO USING THE POINT FACTOR ANALYSIS SYSTEM: To the extent possible, the classifier is guided by the selection of levels by the subject matter experts on the job – the employee and the immediate supervisor – in assigning factor point levels for each of the compensable work factors. The classifier should be aware that employees who complete a “self evaluating” Job Analysis Questionnaire are keenly aware that the results of the review and placement of the job is influenced by the level self selected. There fore it is incumbent on the classifier to use the “self selected” levels as a guide, but to objectively and thoroughly review the levels selected in light of the appropriate overall placement of the position within the organization hierarchy, remembering that the guide chart of point factors must be able to be applied to all positions in the organization from the most entry level job to that of ultimate responsibility for the entire organization. The classifier should also be aware, that in interpreting the factor levels, the incumbent in the position is inherently drawn to make all decisions in his or her favor. Keeping this in mind, if the factor being reviewed by the classifier has a total of 9 levels, and an employee, who is several levels down in the organization, ranks him or her self at one of the highest levels, it will be necessary to make some common sense adjustments. As a guide each compensable work factor has the following number of levels: Factor Levels DATA RESPONSIBILITY: 10 PEOPLE RESPONSIBILITY: 10 ASSETS RESPONSIBILITY: 10 VOCATIONAL/EDUCATIONAL PREPARATION 9 EXPERIENCE REQUIREMENTS 9 MATHEMATICAL REQUIREMENTS 9 COMMUNICATIONS REQUIREMENTS 9 JUDGMENT 10 COMPLEXITY 9 IMPACT OF ERRORS 9 PHYSICAL REQUIREMENTS 9 EQUIPMENT USAGE 9 UNAVOIDABLE HAZARDS 9 SAFETY OF OTHERS 9 The first three factors are considered the Major Factors. The other 11 factors are support factors. The Major Factor serve as multipliers of all other factors in the system and are the key factors that assess overall organizational responsibility. The overall responsibility one has for data, people and assets permeate all of the decisions and actions taken an impact on the remaining factor. All of the factors are additionally weighted to reflect their econometric value in the market place. For example, the market place values complexity of the work higher than it values physical demands. The selection of a Major Factor will directly influence the value of the support factors and should be done only with a great deal of care and consideration. 2 Management Advisory Group © 2007Proprietary and Confidential

ORGANIZATION VALUE© 0. Trainee/Apprentice 1. Employee 2. Lead Worker – Office Manager 3. Supervisor/Coordinator - First Line Manager 4. Group or Unit Manager – Small 5. Group or Unit Manager - Large 6. Department Manager/Administrator 7. Second Level Director – Superintendent – Coordinator (as used in large Schools) 8. Director 9. Director reporting to CEO/CAO 10. Other (describe) Some leeway should be shown in determining the appropriate level and this particular organizational structure (outlined above) is for a very large organization (up to 10,000 employees or more). Smaller organizations would have fewer levels and the points should be applied accordingly. Smaller organizations probably do not have more than 6-7 levels. 3 Management Advisory Group © 2007Proprietary and Confidential

COMPETENCY FACTORS DATA RESPONSIBILITY DEFINITION OF DATA Data are information, knowledge, and conceptions obtained by observation, investigation, interpretation, visualization, and mental creation. Data are intangible and include numbers, words, symbols, ideas, concepts, and oral verbalizations. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: Comparing or inspecting items against a standard 2 Description: Copying, transcribing, entering, or posting data or information 3 Description: Computing or performing arithmetic operations using data or information 4 Description: Summarizing, tabulating, or formatting data or information in accordance with a prescribed schema or plan, to facilitate the identification and extraction of useful information. 5 Description: Gathering, organizing, analyzing, examining, or evaluating data or information and may prescribe action based on such data or information 6 Description: Coordinating or determining time, place or sequence of operations or activities based on analysis of data or information and may implement and report on operations and activities 7 Description: Planning or directing others in the sequence of major activities and reporting on operations and activities which are very broad in scope 8 Description: Synthesizing or integrating analysis of data or information to discover facts or develop knowledge or interpretations; changes policies, procedures, or methodologies based on new facts, knowledge, or interpretations 9 Description: Developing new approaches or methodologies to solve problems not previously encountered by analyzing, synthesizing, or evaluating data or information using unconventional or untried methods. 10 Description: Formulating new concepts or theories based on original research, intellectual creativity, and ideas 4 Management Advisory Group © 2007Proprietary and Confidential

PEOPLE RESPONSIBILTIY DEFINITION OF PEOPLE People are defined in the normal sense of the word and means co-workers, customers, crime victims, patients, the general public, and any other persons the employee may encounter in the course of work. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: Following instructions and orders of supervisor 2 Description: Serving others such as customers, attending to their requests and exchanging information with them 3 Description: Speaking or signaling to people to convey or exchange information of a general nature 4 Description: Giving information, guidance, or assistance to people which directly facilitates task accomplishment; may give instructions or assignments to helpers or assistants 5 Description: Persuading or influencing others in favor of a service, point of view, or course of action; may enforce laws, rules, regulations, or ordinances 6 Description: Supervising or leading others by determining work procedures, assigning duties, maintaining harmonious relations, and promoting efficiency 7 Description: Counseling or instructing/training others through explanation, demonstration and supervised practice or making recommendations based on technical expertise 8 Description: Negotiating, exchanging ideas, information, and opinions with others to formulate policy and programs or arrive jointly at decisions, conclusions, or solutions 9 Description: Directing or commanding others by issuing orders and instructions 10 Description: Mentoring others by advising, counseling, or guiding them regarding problems that may be resolved by legal, scientific, clinical, spiritual, or professional principles 5 Management Advisory Group © 2007Proprietary and Confidential

ASSETS REPONSIBILITY DEFINITION OF ASSETS RESPONSIBILITY Assets responsibility refers to the responsibility for achieving economies or preventing loss within the organization. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: I have minimum responsibility for only small quantities of low cost items or supplies where opportunities for achieving economies or preventing loss are negligible. 2 Description: I have some responsibility for achieving minor economies and/or preventing minor losses through the handling of or accounting for materials, supplies or small amounts of money. 3 Description: I have responsibility and opportunity for achieving moderate economies and/or preventing moderate losses through the management of a small division; handling supplies of high value or moderate amounts of money consistent with the operation of a small division. 4 Description: I have responsibility and opportunity for achieving considerable economies and/or preventing considerable losses through the management of a large division or minor department; and/or handling of very large amounts of money. 5 Description: I have responsibility and opportunity for achieving major economies and/or preventing manor losses through the management of a moderate sized department, authorizing expenditures of large amounts of money or supervising the purchasing of high value materials, supplies and equipment, or for providing routine legal counsel. 6 Description: I have responsibility for achieving major economies or preventing major losses through the management of a large department, or through interpreting policy as legal counsel. 7 Description: I have responsibility for achieving major economies or preventing major losses through the management of a highly complex and/or technical department, or through developing and recommending policy as legal counsel. 8. Description: I have responsibility and opportunity for achieving wide-spread economies and/or prevent losses through the management of a department that has an organization-wide impact or significant impact on the general population, or the supervision of a staff of attorneys. 9. Description: I have responsibility and opportunity for achieving widespread economies and/or preventing losses through the development and administration of organization-wide programs and policies that impact the operations of two or more major departments or three or more minor department, or for providing legal counsel to the elected officials. 10. Description: I have responsibility for the overall administration of fiscal and administrative policy with authority and responsibility over all departments or the direction of the organization’s legal department. Reports directly to the top elected body. 6 Management Advisory Group © 2007Proprietary and Confidential

EXPERIENCE REQUIREMENTS DEFINITION OF EXPERIENCE Experience refers to the amount of work experience that is required for entry level into the position that would result in a reasonable expectation that the employee can perform the job. It may be experience that can be gained on the job or experience in a previous job. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: Requires a short demonstration up to and including one month. 2 Description: Requires a minimum of three months 3 Description: Requires a minimum of 6 months. 4 Description: Requires a minimum of one year. 5 Description: Requires a minimum of three years. 6 Description: Requires a minimum of five years. 7 Description: Requires a minimum of eight years 8 Description: Requires a minimum of ten years 9 Description: Requires over ten years 7 Management Advisory Group © 2007Proprietary and Confidential

VOCATIONAL/EDUCATIONAL PREPARATION DEFINITION OF VOCATIONAL/EDUCATIONAL PREPARATION Vocational/Educational preparation includes job specific training and education that may be acquired in a school, work, military, institutional or vocational environment. It does not include the orientation time required of a fully qualified worker to become accustomed to the special conditions of any new job. Nor does it include the amount of time that a worker spends to learn reasoning, language, and mathematical skills, which are often learned in school. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: Requires instruction that is sufficient for satisfactory job performance 2 Description: Requires High school, GED or specialized vocational training 3 Description: Requires High school diploma, GED and formal training, special courses or self-education that is equivalent to satisfactory completion of one year of college education or specialized advanced training 4 Description: Requires Associate’s degree, vocational technical degree or specialized training that is equivalent to satisfactory completion of two years of college education 5 Description: Requires Bachelor's degree or education and training equivalent to four years of college education in business, liberal arts, or any field other than engineering or the hard sciences 6 Description: Requires Bachelor's degree in engineering or the hard sciences such as architecture, chemistry, geology, biology, mathematics, or physics or a Master's degree in Liberal Arts, Information, or Fire Science 7 Description: Requires Master of Science degree in a professional or scientific field such as physics, engineering, geology or closely related field 8 Description: Requires Master of Science degree in a professional or scientific field such as physics, engineering, geology or closely related field with one year Doctoral work 9 Description: Requires Medical Doctor, or Doctorate level degree. 8 Management Advisory Group © 2007Proprietary and Confidential

MATHEMATICAL REQUIREMENTS DEFINITION OF MATHEMATICS Mathematics requires the use of symbols, numbers and formulas to solve mathematical problems. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: Using basic addition and subtraction, such as making change of measuring 2 Description: Using addition and subtraction, multiplication and division, and/or and calculating ratios, rates and percents 3 Description: Using basic algebra involving variables and formulas and/or basic geometry involving plane and solid figures, circumferences, areas, and volumes and/or computing discounts and interest rates 4 Description: Using mathematics involving the practical application of fractions, percentages, ratios and proportions; or measurements, logarithmic, or geometric construction; may use algebraic solutions of equations and inequalities; descriptive statistics; deductive geometry, plane and solid, and rectangular coordinates; mathematical classifications or schemes 5 Description: Using algebra working with such factors as exponents, logarithms, linear and quadratic equations; concepts of analytic geometry, differentiation and integration of algebraic functions; statistics applying such functions as frequency distribution, reliability, validity and correlation techniques; finance and economics using financial and econometric models 6 Description: Using advanced calculus using such factors as limits, real number systems, mean values; algebraic functions including very complex functions; inferential statistics and econometrics 7 Description: Using advanced mathematical concepts and models in experimental design 8 Description: Using theoretical mathematical theorems and concepts to solve theoretical and practical problems and in original research to advance the mathematical body of knowledge 9 Description: Developing advanced mathematical theories and concepts with application in such areas as nuclear science, chemistry, economics and physics 9 Management Advisory Group © 2007Proprietary and Confidential

COMMUNICATIONS REQUIREMENTS DEFINITION OF COMMUNICATIONS Communication involves the ability to read, write, and speak. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: Comprehending simple signs, labels, symbols; understanding routine lists of instructions when explained; little or no reading or writing required by the job; basic speaking skills not necessarily including complete sentences 2 Description: Reading simple sentences, instructions, or work orders; writing simple sentences and completing simple job forms; speaking simple sentences using basic grammar 3 Description: Reading routine sentences, instructions, regulations, procedures, or work orders; writing routine sentences and completing routine job forms and incident reports; speaking routine sentences using proper grammar 4 Description: Reading technical instructions, procedures manuals, and charts to solve practical problems such as assembly instruction for tools, routine office equipment operating instructions, and methods and procedures for investigations, and in drawing and layout work; composing routine reports and specialized reports, forms, and business letters, with proper format; speaking compound sentences using normal grammar and word form 5 Description: Reading journals, manuals, and professional publications; speaking informally to groups of co-workers, staff in other organizational agencies, the general public, people in other organizations, and presenting training; composing original reports, training and other written materials, using proper language, punctuation, grammar, and style 6 Description: Reading professional literature and technical manuals; speaking to groups of employees, other public and private groups; writing manuals and complex reports 7 Description: Reading scientific and technical journals, abstracts, financial reports, and legal documents; speaking before professional and civic groups, participating in panel discussions and speaking extemporaneously on a variety of subjects; writing complex articles, reports, and developing presentations for sophisticated audiences 8 Description: Reading and interpreting professional materials involving advanced bodies of knowledge related to politics, economics, technology, law, medicine, and other complex disciplines; writing extremely complex papers and reports; speaking to high level scientific, political, economic, legal, medical, or other such groups 9 Description: Reading and interpreting highly complex scientific, medical, or professional materials involving abstract theories and concepts; speaking before scientific, professional, and civic groups; writing articles for scientific and technical journals, and developing papers and presentations for professional symposiums and conferences. 10 Management Advisory Group © 2007Proprietary and Confidential

JUDGMENT DEFINITION OF JUDGMENT Judgment refers to the frequency and complexity of judgments and decisions given the stability of the work environmental, the nature and type of guidance, and the breadth of impact of the judgments and decisions. DEGREE GRADING CRITERIA AND DESCRIPTION 1 I make very few decisions, affecting only the individual; working in a very stable environment with clear and uncomplicated written/oral instructions 2 I guide others requiring a few decisions, affecting the individual and a few co-workers; work in a stable environment with clear and uncomplicated written/oral instructions but with some variations from the routine 3 I guide others, requiring frequent decisions, affecting the individual, co-workers, and others whom depend on the service or product; work in a somewhat fluid environment with rules and procedures but many variations from the routine 4 I am responsible for actions of others, requiring almost constant decisions affecting co- workers, crime victims, patients, customers, clients or others in the general public; work in a moderately fluid environment with guidelines and rules, but frequent variations from the routine 5 I am responsible for actions of others requiring development of procedures and constant decisions affecting subordinate workers, crime victims, patients, customers, clients, or others in the general public; work in a very fluid environment with guidelines but significant variation 6 Decision-making is a significant part of job, affecting a large segment of the organization and the general public; works in a dynamic environment, responsible to assist in developing policy and practices 7 Decision-making a major part of job, affecting a major segment of the organization and the general public; works in a dynamic environment, responsible to develop policy and practices 8 Decision-making almost entire focus of job, affecting most segments of the organization and the general public; works in a highly dynamic environment, responsible to establish goals, objectives and policies 9 Decision-making is the main focus of job, affecting entire organization and surrounding population; works in an unstable environment with frequent and significant changes in conditions 10 Decision-making primary to job, affecting organization, related organizations, and major segments of the general population; works in an evolving environment with emerging knowledge and technologies, competing priorities, and changing politics 11 Management Advisory Group © 2007Proprietary and Confidential

COMPLEXITY OF THE WORK DEFINITION OF COMPLEXITY OF THE WORK Reasoning requires consideration of factors and variables to derive solutions to problems. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: I perform routine work using common sense; requires little attention for accurate results. 2 Description: I perform semi-routine work, following procedures, with occasional problems; requires normal attention for accurate results 3 Description: I perform semi-skilled work involving set procedures and rules but with frequent problems; requires normal attention with short periods of concentration for accurate results or occasional exposure to unusual pressure. 4 Description: I perform skilled work involving rules/systems with almost constant problem solving; requires normal attention with short periods of concentration for accurate results and occasional exposure to unusual pressure. 5 Description: I perform coordinating work involving guidelines and rules, with constant problem solving; requires continuous, close attention for accurate results or frequent exposure to unusual pressures. 6 Description: I perform supervisory work involving policy and guidelines, solving both people and work related problems; requires continuous, close attention for accurate results and frequent exposure to unusual pressures 7 Description: I perform work involving the application of logical principles and thinking to solve practical problems within or applying to a unit or division of the organization; requires continuous, close attention for accurate results and frequent exposure to unusual pressures 8 Description: I perform work involving the application of principles of logical thinking, scientific, medical, or legal practice to diagnose or define problems, collect data and solve abstract problems with widespread unit or organization impact; Requires sustained, intense concentration for accurate results and continuous exposure to unusual pressure 9 Description: I perform work involving the application of broad principles of professional management and leadership to solve new problems for which conventional solutions do not exist; Requires sustained, intense concentration for accurate results and continuous exposure to unusual pressure. 12 Management Advisory Group © 2007Proprietary and Confidential

IMPACT OF DECISIONS DEFINITION OF IMPACT OF DECISIONS Mistakes can cause consequences such as damage to equipment and property, loss of data, exposure of the organization to legal liability, and injury or death for individuals. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: I make decisions where the impact is very minor – affects only the individual 2 Description: Impact of decisions is minor – affects only those in immediate work area 3 Description: Impact of decisions is moderate – affects those in work unit 4 Description: Impact of decisions is moderately serious – affects work unit and may affect other units or citizens or loss of life could occur but probability is low 5 Description: Impact of decisions is moderately serious – affects most units in organization, and may affect citizens or loss of life and/or damage could occur and probability is likely 6 Description: Impact of decisions is very serious - affects entire organization and the general public or loss of life and/or damage could occur and probability is very likely 7 Description: Impact of decisions is extremely serious -- affects entire organization and impacts other activities/organizations and the general public or loss of life and/or damage could occur and is highly likely 8 Description: Impact of decisions impact is severe - affects entire organization, other activities/organizations, the general public, and a wide geographic area or loss of life and/or damage could occur and is highly likely 9 Description: Impact of decisions is catastrophic - has a widespread impact on both public and private organizations, the general public, an extensive geographic area and may impact private citizens, the community or a larger geographic area; survival of organization is threatened or widespread loss of life and severe damage is probable 13 Management Advisory Group © 2007Proprietary and Confidential

PHYSICAL DEMANDS DEFINITION OF PHYSICAL DEMANDS Physical demands refers to the physical exertion and dexterity requirements involving coordination of limb and body movement. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: Sedentary work that involves sitting most of the time, but may involve walking or standing for brief periods of time; requires little or no dexterity 2 Description: Sedentary work that involves walking or standing some of the time and involves exerting up to 10 pounds of force on a regular and recurring basis or sustained keyboard operations 3 Description: Light work that involves walking or standing most of the time and involves exerting up to 20 pounds of force on a regular and recurring basis or skill, adeptness and speed in the use of fingers, hands or limbs on repetitive operation of mechanical or electronic office or shop machines or tools within moderate tolerances or limits of accuracy 4 Description: Light to medium work that involves walking or standing virtually all of the time and also involves exerting between 20 and 50 pounds of force on a regular and recurring basis or considerable skill, adeptness and speed in the use of the fingers, hands or limbs in tasks involving close tolerances or limits of accuracy 5 Description: Medium work that involves walking, standing, stooping, jumping, dancing, stretching, or lifting all of the time and also involves exerting between 20 and 50 pounds of force or exceptional skill, adeptness, and speed in the use of fingers, hands, or limbs in tasks involving very close tolerances or limits of accuracy 6 Description: Medium to heavy work that involves walking, standing, stooping, lifting, digging, pushing and raising objects and also involves exerting between 20 to 50 pounds of force on a regular basis and 50 to 100 pounds of force on a occasional basis 7 Description: Heavy work that involves constantly lifting, shoveling, and carrying 35 to 50 pounds on a regular and recurring basis and exerting 100 pounds of force on a frequent basis 8 Description: Very heavy work that involves constantly lifting, shoveling, and carrying 50 to 75 pounds on a regular and recurring basis and exerting 100 pounds of force on a frequent basis 9 Description: Very heavy work that involves exerting more than 120 pounds of force on a regular and recurring basis, loading and unloading, moving, lifting, fabricating and installing very large or very heavy equipment. 14 Management Advisory Group © 2007Proprietary and Confidential

EQUIPMENT USAGE DEFINITION OF EQUIPMENT USAGE Equipment usage involves responsibility for, materials, machines, tools, equipment, work aids, and products DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: Handling or using machines, tools, or equipment requiring little or no prior experience such as shovels, picks, mops, brooms, copiers, calculators, kitchen equipment or similar small items 2 Description: Handling or using machines, tools, or equipment requiring brief instruction or experience such as hand and power tools, buffers, floor polishers, vacuum sweepers, outdoor hand-held power equipment, small mowers, commercial kitchen equipment, computers for data entry, fax, complex copiers, phone systems, and other similar equipment, services office machines including such actions as adding paper and changing toner. 3 Description: Handling or using machines, tools, or equipment requiring moderate instruction and experience such as large shop equipment and machines, firefighting apparatus, protective equipment, gang mowers, tractors, vehicles, police vehicles or light trucks, firearms, computers, peripherals, medical or dental equipment, software programs such as word processing, spreadsheets, or custom applications, switchboard OR may repair power tools and light equipment and office machines. 4 Description: Leading or operating or repairing complex machinery or equipment that requires extended training and experience such as HVAC equipment, heavy construction equipment, trucks using hydraulic pumping equipment, rescue vehicles, firefighting apparatus, aircraft, watercraft, protective equipment, electronic telecommunications equipment, electronic signaling equipment, commercial video equipment, medical, dental, or scientific equipment, complex drafting or GIS software, software used for programming custom applications; or the application of custom or commercial financial, accounting, administrative, legal, medical, dental, scientific or other complex software or systems; may involve installation and testing. Involves operations of limited scope. 5 Description: Coordinating the activities of those operating or repairing complex machinery or equipment that requires extended training and as described in item 4 above; may involve installation and testing. Involves operations of moderate scope. 6 Description: Supervising the activities of those operating or repairing complex machinery or equipment that requires extended training and experience such as those described in item 4 above; may involve development, installation and testing. Span of control and scope of operations is extensive involving a large number of facilities. 7 Description: Interpreting policy and establishing methods and procedures for acquiring, installing, testing, operating or repairing complex machinery or equipment that requires extended training and experience such as those described in item 4 above; preparing specifications for contracts for goods and services 15 Management Advisory Group © 2007Proprietary and Confidential

8 Description: Establishing policy for the acquisition, installation, testing, operation, maintenance and repair of complex machinery, equipment, or systems; includes establishing specifications for the acquisition of major pieces of equipment, rolling stock, machinery, and technology systems; establishing budgets for major construction repairs or new construction; determining the allocation of materials, equipment and supplies with respect to major construction projects. 9 Description: Establishing long range plans and programs, identify funding sources, allocate funds for, and implement long range capital improvements, major construction projects, major equipment, rolling stock, and new technology systems which support goals and objectives of the organization. 10 Description: Developing and establishing capital improvements plans, overseeing major construction projects, or having control and authority over the purchase of major equipment, rolling stock, and new technology systems 16 Management Advisory Group © 2007Proprietary and Confidential

UNAVOIDABLE HAZARDS DEFINITION OF AN UNAVOIDABLE HAZARDS Unavoidable hazards refer to the job conditions that may lead to injury or health hazards even though precautions have been taken. DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: None Definition: Works in environmentally controlled situation such as office. 2 Description: Bright/dim light; Dusts and pollen Definition: Works in dimly lit areas such as crawl spaces, outdoors in bright sunlight, or in other situations where excessively bright or dim light conditions prevail; or works in outdoor or indoor areas under dusty conditions or outdoor areas with pollen producing vegetation prevalent. 3 Description: Extreme heat and/or cold;: Wet or humid conditions Definition: Works outdoors in very hot or very cold conditions or indoors in areas where cold or hot conditions are generated such as a cold storage room or boiler room, or works outdoors in wet or humid conditions or indoors in areas where wet or humid conditions are generated such as kitchen dish washing machine area or food processing area. 4 Description: Extreme noise levels; or Animals/wildlife Definition: Works indoors in areas generating extreme noise levels such as heavy machine shop or outdoors in areas where heavy machinery such as bulldozers or jackhammers are at work; or works in area where exposure to animals and wildlife is deliberate such as a zoo or in relatively uninhabited outdoor areas involving heavy vegetation or swampy conditions. 5 Description: Vibration; or Fumes and/or noxious odors Definition: Works in situation of exposure to a shaking object or surface such as operating a compressed air rock drilling machine; or works indoors in areas where fumes and noxious odors are generated such as painting booth, animal shelter, or engine repair facility or outdoors in such areas as landfills or refuse disposal facility. 6 Description: Traffic; Moving machinery Definition: Operates vehicles in urban areas where heavy vehicle traffic is prevalent such as driving delivery truck to deliver mail and parcels within city; or works in proximity to moving mechanical parts such as in wood working or metal working shop. 17 Management Advisory Group © 2007Proprietary and Confidential

7 Description: Electrical shock; Heights Definition: Words where exposure to bodily injury from electrical shock is a possibility such as operating high voltage equipment or repairing electrical generating equipment; or works in high, exposed places with risk of falling such as on power lines or scaffolding. 8 Description: Radiation; Disease/pathogens; Industrial Toxic/caustic chemicals; Explosives Definition: Works in area where exposure to radiation is a possibility such as near x- ray equipment or in a nuclear reactor facility; or works in area where exposure to disease or pathogens is a possibility such as an animal control facility or hospital; or works in area where toxic or caustic chemicals are used, such as shop area where batteries are handled or charged or in areas where electronic parts are cleaned; or works in areas where explosions are possible such as maintaining gas lines or welding or where explosions are deliberate such as excavation or earth moving. 9 Description: Violence; Other extreme hazard not listed above Definition: Works under circumstances where violence is a real and constant possibility such as in police work or in a prison facility; or works under other hazardous conditions such as underground where suffocation or crushing is possible or underwater where the bends or oxygen deprivation could occur. 18 Management Advisory Group © 2007Proprietary and Confidential

SAFETY OF OTHERS DEFINITION OF SAFETY OF OTHERS Safety of others refers to the level of responsibility for the safety of others, either inherent in the job or to assure the safety of the general public. . DEGREE GRADING CRITERIA AND DESCRIPTION 1 Description: Requires no responsibility and provides minimum opportunity for exercise of care to effect safety of others in performing duties of the position. 2 Description: Requires some responsibility for safety and health of others and/or for occasional enforcement of the standards of public safety or health. 3 Description: Requires responsibility for safety and health of others and for occasional enforcement of the laws and standards of public heath and safety. 4 Description: Requires considerable responsibility for safety or health of others and/or for continuous enforcement of the laws and standards of public health and safety. 5 Description: Requires considerable responsibility for the first-line supervision of the provision of continuous enforcement of the laws and standards of public health and safety. 6 Description: Requires considerable responsibility for the mid-level management of the provision of continuous enforcement of the laws and standards of public health and safety. 7 Description: Requires management level responsibility for application and interpretation of the policies regarding the provision of continuous enforcement of the laws and standards of public health and safety. 8 Description: Requires responsibility and authority for the development of policies regarding the provision of continuous enforcement of the laws and standards of public health and safety. 9 Description: Serves as the head of an agency or department that has primary responsibility for the enforcement of public safety laws. 19 Management Advisory Group © 2007Proprietary and Confidential

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

ACTION FORM PROCEEDING: Legislative, Finance, and Administration Committee AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Assessor’s Office DATE SUBMITTED: 04/13/2009 PREPARED BY: Cheryl Russell, Assessor SUBJECT: Proposed Ordinance Amendments – Chapter 102 – Taxation REFERENCE: IAAO Audit RELATED PROJECT: IAAO Audit APPROVALS: Legislative, Finance, and Administration Committee and City Council EXHIBITS: Proposed Ordinance Amendments and Recommendations by the IAAO EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: Effective upon adoption by Council RECOMMENDED ACTION: Staff recommends approval of the proposed ordinance amendments to Chapter 102 - Taxation. BACKGROUND AND ANALYSIS In June 2008, the International Association of Assessing Officers (IAAO) performed an audit of the City of Dover Assessor’s Office. Staff has prepared proposed amendments to the City of Dover Code that will implement the recommendations of the IAAO, the Tax Appeals Committee, and the City Assessor. Section 102-5 (Income and expense reports) This amendment to the Ordinance is a new section to allow the Assessor to require that owners of rental properties complete and file annual reports of income and expenses on forms developed by the Assessor’s Office. This information is invaluable in developing the value for these income producing properties. The Income Approach to Valuation is the most common methodology to value these types of property. The penalty for not returning the Income and Expense form will be “denial of appeal” if they are not satisfied with their value. Deadline for returning the Form is also established in this ordinance. Section 102-77 (Duties of city assessor) This amendment to the Ordinance is updating the language used for affixing the stamp to the deeds when they are brought into the Assessor’s Office. Also, a clarification for a period of time for audits of the Transfer Tax. Section 102-185 (Appeals) This amendment to the Ordinance is a new section to explain due dates that were established for the Appeals Committee and approved by Council on November 13, 2007. This ordinance also explains that the right to appeal is lost if they miss any designated appeal date and that appeals and refunds will not be heard for prior years. This has already been common practice in the Assessor’s Office.

CHAPTER 102 - TAXATION IN FULL CONTEXT 1 ARTICLE I - IN GENERAL 2 Sec. 102-1. Annual valuation and assessment. 3 Section 47 of the Charter provides that an annual impartial valuation and assessment of all 4 real property within the city shall be conducted every third year. The annual valuation and 5 assessment is to be done by the city assessor. The council may also direct that in lieu of the 6 reassessment and valuation by the city assessor, such reassessment and valuation may be done by 7 a certified independent outside appraiser chosen by the council. Pursuant to section 47 of the Charter, 8 commencing with the year 2010 and every ninth year thereafter, the annual reassessment shall be 9 conducted by a certified independent outside appraiser chosen by the council. In all other years and 10 in accordance with section 47 of the Charter, the annual valuation and assessment shall be conducted 11 by the city assessor. 12 (Code 1981, § 19.5-1; Ord. of 1-22-2001) 13 Sec. 102-2. Delinquent property tax collection costs. 14 (a) If an action to collect delinquent property taxes is filed in a court of appropriate 15 jurisdiction, a fee of $50.00 shall be added to the amount due. 16 (b) If an action proceeds and a writ of venditioni exponas monition or similar execution 17 process is filed, an additional fee of $100.00 shall be added to the amount due. 18 (c) The fees established by this section shall be in addition to court costs and service fees 19 assessed by state or county offices. 20 (Code 1981, § 19.5-46; Ord. of 11-24-1997) 21 Sec. 102-3. Administrative reporting. 22 The city assessor shall be selected in accordance with the City Charter, and shall be directly 23 responsible to the mayor and council. The city assessor shall function under the administration of 24 the city manager. 25 (Ord. of 7-24-2006(2)) 26 Sec. 102-4. Omitted real property assessments. 27 (a) Definition: Omitted assessment . Land or improvements not valued and assessed or 28 included on the assessment rolls or billed due to, but not limited to, the following reasons: 29 computer error, clerical errors, conversion of software or records; missing building permits, 30 failure to issue temporary and final certificates, errors in the preparation of the annual and 31 supplemental tax rolls and billing by any employee or contractor working for the city.

Proposed Ordinance #2009-05 In Full Context Page 2 32 (b) Collection of taxes. The failure to receive a bill or receive an accurate bill does not 33 relieve the taxpayer of the obligation to pay taxes. The city assessor shall cause for the 34 collection of any and all taxes due for the respective years or any supplemental tax periods 35 that may result from omitted assessments. The omitted assessments shall be applicable and 36 consistent with and shall apply to every assessment of taxes for the previous year or years 37 and to the collection of the taxes. 38 (c) Periods covered, and penalties. Errors that cause an inaccurate assessment or billing can 39 be corrected and the correction shall be applied. Every such omitted assessment shall be 40 collected retroactively for a period of ten years, in addition to the current tax year, prior to 41 the discovery by the city assessor of omitted assessments. The city shall add a penalty of one 42 and one-half percent per month for each respective month not assessed unless it is evident 43 that there was no prior knowledge of the omitted assessment by the property owner. 44 (d) Notice; required. The city assessor shall give notice of any proposed omitted assessment 45 of any real property for any previous tax year or years or supplemental tax periods, to all 46 persons liable to the tax. The notice shall contain a general description, according to Kent 47 County Property Identification Numbering system (PIN), of the real estate and state the year 48 or years for which the real estate is liable to assessment, the name or names of the person or 49 persons liable to assessments or reassessments, according to the legal owners of record on 50 file with the Kent County Recorder of Deeds, and further the value of the assessment. Notice 51 of "omitted assessments" shall be by certified mail, return receipt requested and regular 52 United States postal mail service within 30 days of discovery of any omitted assessment. 53 (e) Appeal. Appeals for omitted assessment shall be the same as general and supplemental 54 assessments appeals 55 Section 102-5. Income and expense reports. 56 57 The Assessor shall require that all income producing property, within the city limits of 58 Dover, complete and file annual reports of Income and Expenses on forms developed by the 59 Assessor. Failure to provide the Assessor with an Income and Expense Report will result in 60 denial of any appeal for their subject property. Income and Expense reports will be due within 61 thirty (30) days of receipt of request by the Assessor. 62 Recommendation by the IAAO in June 2008 - Assessment Change #10 63 ARTICLE III - REALTY TRANSFER TAX 64 Sec. 102-71. Definitions. 65 (a) The following words, terms and phrases, when used in this article, shall have the 66 meanings ascribed to them in this section, except where the context clearly indicates a 67 different meaning: 68 (1) Document means any deed, instrument or writing whereby any real estate within the 69 corporate limits of the city, or any interest therein, shall be quitclaimed, granted, 70 bargained, sold or otherwise conveyed to the grantee, but shall not include the following:

Proposed Ordinance #2009-05 In Full Context Page 3 71 a. Any will; 72 b. Any lease other than those described or defined in subsection (a)(2) of this section; 73 c. Any mortgage; 74 d. Any conveyance between corporations operating housing projects pursuant to 31 75 Del. C. § 4501 et seq., and the shareholders thereof; 76 e. Any conveyance between nonprofit industrial development agencies and industrial 77 corporations purchasing from them; 78 f. Any conveyance to nonprofit industrial development agencies; 79 g. Any conveyance between a husband and wife; 80 h. Any conveyance between persons who were previously husband and wife, but who 81 have since been divorced, provided that such conveyance is made after the granting 82 of the final decree in divorce and the real estate or interest therein subject to such 83 conveyance was acquired by the husband and wife, or husband or wife prior to the 84 granting of the final decree in divorce; 85 i. Any conveyance between parent and child or the spouse of such a child; 86 j. Any conveyance: 87 1. To a trustee, nominee or straw party for the grantor as beneficial owner; 88 2. For the beneficial ownership of a person, other than the grantor, where, if 89 such person were the grantee, no tax would be imposed upon the conveyance 90 pursuant to this chapter; or 91 3. From a trustee, nominee or straw party to the beneficial owner; 92 k. Any conveyance between a parent corporation and a wholly owned subsidiary 93 corporation, provided that such conveyance is without actual consideration; 94 l. Correctional deeds without actual consideration; 95 m. Any conveyance to or from the United States, this state or to any of their 96 instrumentalities, agencies or political subdivisions and the University of Delaware; 97 n. Any conveyance to or from a corporation, or a partnership, where the grantor or 98 grantee owns stock of the corporation or an interest in the partnership in the same 99 proportion as his interest in, or ownership of, the real estate being conveyed; 100 provided, however, that this subsection shall not apply to any distribution in 101 liquidation or other conveyance resulting from the partial or complete liquidation of 102 a corporation, unless the stock of the corporation being liquidated has been held by 103 the grantor or grantee for more than three years; provided, further, this subsection 104 shall not apply to any conveyance from a partnership to its partners, unless the 105 partners' interest in the partnership has been held for more than three years;

Proposed Ordinance #2009-05 In Full Context Page 4 106 o. Any conveyance by the owner or previously occupied residential premises to a 107 builder of new residential premises when such previously occupied residential 108 premises are taken in trade by such builder as a part of the consideration from the 109 purchaser of new, previously unoccupied premises; 110 p. Any conveyance to the lender holding a bona fide mortgage, which is genuinely 111 in default, either by a sheriff conducting a foreclosure sale, or by the mortgagor in 112 lieu of foreclosure; 113 q. Any conveyance to a religious organization or other body or person holding title 114 to real estate for a religious organization, if such real estate will not be used 115 following such transfer by the grantee, or by any privy of the grantee, for any 116 commercial purpose; provided, however, that only that portion of the tax which is 117 attributable and payable by the religious organization or other body or person holding 118 title to real estate for a religious organization under 30 Del. C. § 5402 shall be 119 exempt; 120 r. Any conveyance to or from a volunteer fire company organized under the laws of 121 this state; provided, however, that only that portion of the tax which is attributable 122 to and payable by the volunteer fire company by this article shall be exempt; 123 s. Any conveyance of a "mobile home," as defined in 25 Del. C. § 7003; 124 t. Any conveyance without consideration to an organization exempt from tax under 125 section 501(c)(3) of the federal Internal Revenue Code (26 USC 501(c)(3)); 126 u. Any conveyance to a nonprofit conservation organization, when the property is 127 purchased for open space preservation purposes; 128 v. Any conveyance to or from a nonprofit corporation or organization of real estate 129 acquired for the purpose of rehabilitation and resale without profit. 130 (2) Document includes the following: 131 a. Any writing purporting to transfer a title interest or possessory interest for a term 132 of more than five years in a condominium unit or any unit properties subject to the 133 Unit Property Act pursuant to 25 Del. C. § 2201 et seq. 134 b. Any writing purporting to transfer a title interest or possessory interest of any 135 lessee or other person in possession of real estate owned by the state or other political 136 subdivision thereof. 137 c. Any writing purporting to assign or transfer a leasehold interest or possessory 138 interest in residential property under a lease for a term of more than five years. For 139 this purpose, the term "residential property" means any structure or part of a structure 140 which is intended for residential use, and excluding any commercial unit subject to 141 tax under 30 Del. C. § 2301(a)(88) relating to commercial lessors.

Proposed Ordinance #2009-05 In Full Context Page 5 142 (3) First time homebuyer means a natural person who has at no time held an interest in 143 residential real estate, wherever located, and which has been occupied as their principal 144 residence, and who intends to occupy the property being conveyed as his principal 145 residence, within 90 days following recordation of the deed. The first time homebuyer 146 must file an affidavit certifying to his qualifications before the exemption can be granted. 147 In order to alleviate claims for rebate of the transfer tax paid, no rebate shall be made 148 once the deed for the transaction has been recorded. First time homebuyers submitting 149 a false affidavit in any respect, which would entitle them to the exemption, shall be 150 subject to payment of the unpaid transfer tax, plus interest at the rate of 1 1/2 percent per 151 month and, upon direction by the council, referral to the attorney general of the state for 152 criminal prosecution. This subsection shall apply to all real estate settlements held on or 153 after January 2, 2000. First time homebuyers are exempt from the transfer tax as provided 154 herein. The first time homebuyer exemption shall apply to the seller of property that 155 qualifies for the first time buyer exemption but only for property situated in the area from 156 Mary Street to Loockerman Street and Governors Avenue to West Street. This 157 homebuyer's exemption for the seller is to be effective from the date of adoption [August 158 8, 2005] to August 1, 2010. Council shall have the right to deny this exemption to any 159 property owner where the sale and purchase appears to be done fraudulently to take 160 advantage of the realty transfer tax exemption ordinance. 161 (4) Transaction means the making, executing, delivering, accepting or presenting for 162 recording of a document. 163 (5) Value means, in the case of any document granting, bargaining, selling or otherwise 164 conveying any real estate or interest or leasehold interest therein, the amount of the actual 165 consideration therefor, including liens or other encumbrances thereon, and ground rents 166 which encumber the interest in real estate and any other interest in real estate conveyed, 167 provided, that, in the case of a transfer for an amount less than the highest appraised full 168 value of said property for local real property tax purposes, the term "value" shall mean 169 the highest such appraised value, unless the parties or one of them can demonstrate that 170 fair market value is less than the highest appraised value, in which case, the term "value" 171 shall mean fair market value, or actual consideration, whichever is greater. A 172 demonstration that the transaction was at arm's length between unrelated parties shall be 173 sufficient to demonstrate that the transaction was at fair market value. 174 (b) In determining the term of a lease, it shall be presumed for the purpose of computing the 175 lease term, that any rights or options to renew or extend will be exercised. 176 (c) For the purpose of subsection (a)(5) of this section, in the case of a document described 177 in subsection (a)(2) of this section under which the consideration is based, in whole or in 178 part, on a percentage of the income or receipts to be received in the future, actual 179 consideration shall include the amounts actually received under such percentage of income 180 or receipts provision; provided, however, and notwithstanding any other provisions of this 181 article, that the tax imposed by this article shall be due and payable to the finance director 182 within 30 days after the date such amounts become due and payable under the agreement. 183 (d) Transfers through conveyance of interest.

Proposed Ordinance #2009-05 In Full Context Page 6 184 (1) Except as provided in subsections (d)(2) and (3) of this section, where beneficial 185 ownership in real estate is transferred through a conveyance or series of conveyances of 186 intangible interests in a corporation, partnership or trust, such conveyance shall be 187 taxable under this article as if such property were conveyed through a duly recorded 188 "document" as defined in subsection (a)(1) of this section, and subject to the exemptions 189 contained therein, except those exemptions contained in subsections (a)(1)j. and (a)(1)n. 190 of this section. 191 (2) No bona fide pledge of stock or partnership interests as loan collateral, nor any 192 transfer of publicly traded stock or publicly traded partnership interest shall be deemed 193 subject to taxation under this subsection (d). 194 (3) Where the beneficial owners of real property, prior to the conveyance or series of 195 conveyances referred to in this subsection (d), own 80 percent or more of the beneficial 196 interest in the real estate following said conveyance or series of conveyances, such 197 transfers shall not be subject to tax under this subsection (d). Where the beneficial 198 owners of real property, prior to the conveyance or series of conveyances referred to in 199 this subsection (d), own less than 80 percent of the beneficial interest in the real estate 200 following said conveyance or series of conveyances, such transfers shall not be subject 201 to tax under this subsection (d), unless under regulations promulgated by the city 202 assessor, such transfer or transfers are properly characterized as a sale of real property. 203 Such characterization shall take into account the timing of the transaction, beneficial 204 ownership prior to and subsequent to the conveyance or conveyances, the business 205 purpose of the corporation, partnership or trust, and such other factors as may be 206 relevant. 207 (Code 1981, § 19.5-19; Ord. of 6-27-1988; Ord. of 4-22-1996; Ord. of 8-10-1998; Ord. of 12-13- 208 1999; Ord. of 8-8-2005(1)) 209 Sec. 102-72. Applicability to certain construction. 210 (a) "Document" defined. Notwithstanding section 102-71, there shall be included in the 211 definition of the term "document," for purposes of this article, any contract, or other 212 agreement or undertaking for the construction of all or a part of any building all or a portion 213 of which contract, agreement or undertaking (or any amendment to the foregoing) is entered 214 into, or labor and materials are supplied, either prior to the date of the transfer of the land on 215 which the building is to be constructed or within one year of the date of the transfer to the 216 grantee. 217 (b) Building permit. No building permit shall be issued unless and until the person or 218 persons (including corporations and/or other associations) requesting such permit shall 219 demonstrate, in whatever form may be specified by the city assessor, including, at his 220 discretion, a form of affidavit, that: 221 (1) No transfer as described in this section has occurred within the preceding year; 222 (2) No portion of the contract for construction for which the permit is being requested 223 was entered into and no materials or labor with respect to the building have been 224 provided within one year of the date on which the property was transferred; or 225 (3) There has been paid a realty transfer tax on the document as defined in this section.

Proposed Ordinance #2009-05 In Full Context Page 7 226 (c) Certificate of occupancy. In addition, no certificate of occupancy shall be issued relative 227 to any building on which a tax is provided by this section, unless and until the owner 228 recertifies the actual cost of the building and pays any additional tax due as a result of such 229 recertification. 230 (d) "Building" defined. The term "building," for purposes of this section, shall mean any 231 structure having a roof supported by columns or walls, which structure is intended for 232 supporting or sheltering any use or occupancy, but shall not include any alteration of or 233 addition to an existing building where the cost of such alteration or addition is less than 50 234 percent of the value of the property transferred. 235 (e) "Transfer" defined. The term "transfer," for purposes of this section, shall include any 236 transfer made by a "document" as defined in section 102-71, and shall not include any 237 transaction excluded from the definition of the term "document." 238 (f) Inventory for resale. This section shall not apply to the application for a building permit 239 by a builder or developer who acquires the land and obtains the permit for the purpose of 240 including the land with improvements in the builder's or developer's inventory for resale. 241 (g) Rate of certain tax. Notwithstanding section 102-73, the rate of tax on documents 242 described in subsection (a) of this section shall be one percent on amounts exceeding 243 $10,000.00, which shall be borne by the owner of the building whose construction is made 244 subject to tax under subsection (a) of this section. 245 (Code 1981, § 19.5-19.1; Ord. of 4-22-1991) 246 Sec. 102-73. Levied; exemptions. 247 (a) Rate. Every person who makes, executes, issues or delivers any document, or in whose 248 behalf any document is made, executed, issued or delivered, shall pay therefor and in respect 249 thereof, or for and in respect of the vellum, parchment or paper upon which such document 250 is written or printed, a tax at the rate of 1 1/2 percent of the value of the property represented 251 by such document, which tax shall be payable at the time of the making, execution, issuance 252 or delivery of such document, and said tax is to be apportioned equally between the grantor 253 and grantee, unless otherwise provided for by agreement of the parties. 254 (b) Nominee for grantee. Where a person acquires title to any lands, tenements or 255 hereditaments as a nominee or as a straw party for the real grantee or purchaser, the transfer 256 of such title by such nominee or straw party to the real grantee or purchaser shall be exempt 257 from this tax. 258 (c) Nominee for grantor. Where a person acquires title to any lands, tenements or 259 hereditaments for the purpose of holding the same as a nominee or as a straw party for the 260 grantor, such transfer of title to the nominee or straw party shall be exempt from this tax.

Proposed Ordinance #2009-05 In Full Context Page 8 261 (d) Expenditure of funds. The rate of tax imposed by this article, and other provisions or 262 language to the contrary notwithstanding, shall be 1 1/2 percent of the property value 263 represented by such documents as referred to herein and funds realized pursuant to this 264 article shall be segregated from the general fund and be expended solely for capital and 265 operating costs of public safety services and for other programs and services, all in 266 accordance with the provisions of 22 Del. C. § 1601(c). 267 (Code 1981, § 19.5-20; Ord. of 6-27-1988; Ord. of 8-10-1998) 268 Sec. 102-74. Payment generally; documentary stamps generally. 269 (a) Evidence of payment. The payment of the tax imposed by this article shall be evidenced 270 by the affixing of one or more documentary stamps to every document by the person making, 271 executing, issuing or delivering such document, regardless of the situs of the actual making, 272 executing, issuing or delivering of such document. 273 (b) Affixing stamps. Such stamps shall be affixed in such a manner that their removal will 274 require the continued application of steam or water, and the person using or affixing such 275 stamps shall cause such stamps to be canceled in such a manner that they may not be used 276 again either: 277 (1) By writing or stamping, or by causing to be written or stamped thereon, the initials 278 of his name and the date upon which such stamps are affixed or used; or 279 (2) By complying with such other method of cancellation as the city assessor may 280 prescribe. 281 (c) Source of tax. The tax imposed by this article shall be fully paid and have priority out of 282 the proceeds of any judicial sale of real estate before any other obligation, claim, lien, 283 judgment, estate or costs of the sale, and of the writ upon which the sale is made, and the 284 sheriff or other officer conducting such sale shall pay the tax herein imposed out of the first 285 moneys paid to him in connection therewith, unless previously paid by any party; provided, 286 however, that any tax imposed by the state shall have priority over the tax imposed under this 287 article. 288 (d) Determination of tax. The value for determining the tax shall be the highest of the 289 following: 290 (1) The bid price; 291 (2) The amount of the mortgage not in excess of the fair value of the real estate; 292 (3) The estimated full value; 293 (4) The full and complete value pursuant to section 102-71. 294 (Code 1981, § 19.5-21; Ord. of 6-27-1988)

Proposed Ordinance #2009-05 In Full Context Page 9 295 Sec. 102-75. Liability for payment as between parties. 296 As between the parties to any transaction which is subject to the real estate transfer tax 297 imposed by this article, in the absence of an agreement to the contrary, the burden for paying such 298 tax shall be on the grantor. 299 (Code 1981, § 19.5-22; Ord. of 6-27-1988) 300 Sec. 102-76. Recordation of documents. 301 (a) No document shall be recorded in the office of the recorder of deeds in and for the county 302 unless one or more documentary stamps shall have been affixed thereto as provided in this 303 article. 304 (b) The affixation of stamps to a document upon which a tax is imposed by this article, when 305 lodged with or presented to the recorder of deeds, shall be an affirmation on the part of the 306 transferor that the true, full, and complete value of the transaction is fully reflected in the 307 amount of the stamps affixed thereto. 308 (c) Every document, when lodged with or presented to the recorder of deeds and city 309 assessor, shall set forth therein, and as a part of such document, the true, full, and complete 310 value thereof, or shall be accompanied by an affidavit, executed by a responsible person 311 connected with the transaction, showing such connection and setting forth the true, full, and 312 complete value thereof or the reason, if any, why such document is not subject to tax under 313 this article. 314 (Code 1981, § 19.5-23; Ord. of 6-27-1988) 315 Sec. 102-77. Duties of city assessor. 316 In addition to the other duties of the city assessor: 317 (1) Stamps. The city assessor shall prepare and furnish adhesive stamps of such 318 denominations and in such quantities as may be necessary for the payment of the tax 319 imposed by this article and shall make provisions for the sale of such stamps in such 320 places as may be deemed necessary and indicate on the document the amount of 321 transfer tax that has been paid. 322 (2) Other evidence of payment. The city assessor may, by regulations, provide for the 323 evidence of the payment of the tax to be shown on the document by means other than the 324 affixing of documentary stamps. 325 (3) Regulations. The city assessor is charged with the enforcement of this article and is 326 authorized and empowered to prescribe, adopt, promulgate, and enforce regulations 327 relating to: 328 a. The method to be used in affixing or cancelling of stamps in substitution for or in 329 addition to the method and means provided in this article.

Proposed Ordinance #2009-05 In Full Context Page 10 330 b. The denomination and sale of stamps. 331 c. Any other matter or thing pertaining to the administration and enforcement of this 332 article. 333 (4) Audit. The city assessor is charged with review of the payment and the “value” 334 stated for the purpose of the tax. 335 a. The review and audit process should be conducted within ten (10) days of the 336 “stamping” of the deed. 337 b. Notification to Attorney/Title Company shall be made within five (5) business 338 days of the findings from the review and audit process. 339 Recommendation of IAAO in June 2008 - Assessment Change #11 and 12 340 (Code 1981, § 19.5-24; Ord. of 6-27-1988) 341 Sec. 102-78. Prohibited acts enumerated. 342 No person shall: 343 (1) Pay tax. Make, execute, issue, deliver or accept, or cause to be made, executed, 344 issued, delivered or accepted, any document without the full amount of tax due thereon 345 under the provisions of this article being duly paid; 346 (2) Cancel stamp. Make use of any documentary stamp to denote payment of any tax 347 imposed by this article without cancelling such stamp as provided in section 102-74(b); 348 (3) Comply with regulations. Fail, neglect or refuse to comply with, or otherwise violate, 349 the regulations prescribed, adopted, and promulgated by the department [sic] under the 350 provisions of this article; 351 (4) Cut stamp. Fraudulently cut, tear or remove any documentary stamp from a 352 document; 353 (5) Fraud. Fraudulently affix to any document upon which a tax is imposed by this 354 article any documentary stamp which has been cut, torn or removed from any other 355 document upon which a tax is imposed by this article or any documentary stamp of 356 insufficient value, or any forged or counterfeited stamp, or any impression of any forged 357 or counterfeited stamp, die, plate or other article; 358 (6) Alter cancellation. Willfully remove or alter the cancellation marks of any 359 documentary stamp, or restore any such documentary stamp with the intent to use or to 360 cause the same to be used after it has already been used, or knowingly buy, sell, offer for 361 sale or give away any such altered or restored stamp to any person for use, or knowingly 362 use the same;

Proposed Ordinance #2009-05 In Full Context Page 11 363 (7) Possess altered stamp. Knowingly have in his possession any altered or restored 364 documentary stamp which has been removed from any document upon which a tax is 365 imposed by this article and the possession of such stamp shall be prima facie evidence 366 of an intent to violate this subsection; 367 (8) Forged stamp. Knowingly or willfully prepare, keep, sell, offer for sale or have in 368 his possession any forged or counterfeited documentary stamp; or 369 (9) Accept unstamped document. Accept for recording in the office of any recorder of 370 deeds any document upon which the realty transfer tax is imposed by this article without 371 the proper documentary stamp or other evidence of payment of the tax affixed thereto as 372 required by this article as is indicated in such document or accompanying affidavit. 373 (Code 1981, § 19.5-25; Ord. of 6-27-1988) 374 Sec. 102-79. Violations; penalties. 375 Any person guilty of conduct prohibited in section 102-78 shall, upon conviction, be 376 punished by imposition of a fine of not more than $100.00. Fines not paid within 14 days of the day 377 the fine was issued, including the day the fine was issued, shall be automatically doubled in amount. 378 (Code 1981, § 19.5-26; Ord. of 6-27-1988; Ord. of 9-22-2003) 379 Secs. 102-80--102-110. Reserved. 380 IAAO in June 2008 - Assessment Change #11 and 12 381 ARTICLE VI - EXEMPTIONS; TAX APPEALS COMMITTEE 382 Sec. 102-185. Appeals. 383 384 (1) Appeal Date Deadlines (unless otherwise stated on official documentation): 385 Appeal Filing Deadline (Annual Appeals) Apr 30 386 Appeal Filing Deadline ( October 3/4 Supplemental Bills) Oct 30 387 Appeal Filing Deadline (January 1/2 Supplemental Bills) Jan 30 388 Appeal Filing Deadline (April 1/4 Supplemental Bills) Apr 30 389 If a USPAP Summary Appraisal Report is deemed required, an additional thirty (30) day 390 extension, from the original deadline date, will be granted, in accordance with the City of Dover 391 Assessment Appeal Policy #3. 392 Recommendation of the Appeals Committee and Approved by Council November 13, 2007 393 (2) Right to Appeal is lost if appellant has missed the designated appeal date. The appellant 394 may appeal the following April for the next billing cycle. 395 (3) Appeals/refunds, for errors or opinions of value from appellants, will not be heard for 396 prior years. 397 Recommendation of City Assessor

FIRST READING CITY OF DOVER PROPOSED ORDINANCE #2009-05 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN 2 COUNCIL MET: 3 That Chapter 102 – Taxation, Article I - In General, be amended by adding a new Section 5 - 4 Income and expense reports, to read as follows: 5 Section 102-5. Income and expense reports. 6 The Assessor shall require that all income producing property, within the city limits of Dover, 7 complete and file annual reports of Income and Expenses on forms developed by the Assessor. 8 Failure to provide the Assessor with an Income and Expense Report will result in denial of any 9 appeal for their subject property. Income and Expense reports will be due within thirty (30) days of 10 receipt of request by the Assessor. 11 BE IT FURTHER ORDAINED 12 That Chapter 102 – Taxation, Article III - Realty Transfer Tax, Section 102-77 - Duties of city 13 assessor, be amended by inserting the text indicated in bold, blue, italics, as follows: 14 Section 102-77. Duties of city assessor. 15 In addition to the other duties of the city assessor: 16 (1) Stamps. The city assessor shall prepare and furnish adhesive stamps of such 17 denominations and in such quantities as may be necessary for the payment of the tax imposed 18 by this article and shall make provisions for the sale of such stamps in such places as may 19 be deemed necessary and indicate on the document the amount of transfer tax that has been 20 paid. 21 (2) Other evidence of payment. The city assessor may, by regulations, provide for the 22 evidence of the payment of the tax to be shown on the document by means other than the 23 affixing of documentary stamps. 24 (3) Regulations. The city assessor is charged with the enforcement of this article and is 25 authorized and empowered to prescribe, adopt, promulgate, and enforce regulations relating 26 to: 27 a. The method to be used in affixing or cancelling of stamps in substitution for or 28 in addition to the method and means provided in this article. 29 b. The denomination and sale of stamps. 30 c. Any other matter or thing pertaining to the administration and enforcement of this 31 article.

Proposed Ordinance #2009-05 - Chapter 102 - Taxation Page 2 32 (4) Audit. The city assessor is charged with review of the payment and the “value” stated 33 for the purpose of the tax. 34 a. The review and audit process should be conducted within ten (10) days of the 35 “stamping” of the deed. 36 b. Notification to Attorney/Title Company shall be made within five (5) business 37 days of the findings from the review and audit process. 38 BE IT FURTHER ORDAINED 39 That Chapter 102 - Taxation, Article VI - Exemptions; Tax Appeals Committee, be amended by 40 adding a new Section 102-185 - Appeals to read as follows: 41 Sec. 102-185. Appeals. 42 43 (1) Appeal Date Deadlines (unless otherwise stated on official documentation): 44 Appeal Filing Deadline (Annual Appeals) Apr 30 45 Appeal Filing Deadline ( October 3/4 Supplemental Bills) Oct 30 46 Appeal Filing Deadline (January 1/2 Supplemental Bills) Jan 30 47 Appeal Filing Deadline (April 1/4 Supplemental Bills) Apr 30 48 If a USPAP Summary Appraisal Report is deemed required, an additional thirty (30) day 49 extension, from the original deadline date, will be granted, in accordance with the City of Dover 50 Assessment Appeal Policy #3. 51 (2) Right to Appeal is lost if appellant has missed the designated appeal date. The appellant may 52 appeal the following April for the next billing cycle. 53 (3) Appeals/refunds, for errors or opinions of value from appellants, will not be heard for prior 54 years. 55 ADOPTED: * 56 SYNOPSIS 57 The proposed ordinance would include the recommendations of the IAAO by 58 requiring that owners of rental properties complete and file annual reports of income 59 and expenses; establish filing deadlines for appeals; provide language that an 60 individuals right to appeal is lost if they miss any designated appeal date and that 61 appeals or refunds will not be heard for prior years. 62 (SPONSORS : HOGAN , *, *) 63 Actions History 64 April 13, 2009 - Introduced at Legislative, Finance, and Administration Committee

EVALUATION OF THE PRACTICES AND PROCEDURESOF THE ASSESSOR'S OFFICE AND APPEALPROCESS-JUNE200B RECOMMENDA TlONS ONLY ~ Recommendation - Changes to the City Charter and City Code ftsStS SrY\«(\+ There are a number of recommendations that should be implemented to bring the assessment process in line with current industry standards. c\t(An~ .e... :\:\:: ~ Annual Assessment Date: Institute and clarify the annual assessment date in the City Code. Currently the assessor uses January 1st of each year as the assessment date. This is probably the most common 1- assessment date in the United States and a date that works very well for the Dover tax system. ~ Valuation of Property as of the Assessment Date: Clarify that all property is valued as of its ownership and current market value as of the January 1st assessment date. Currently property under construction cannot be placed on the tax rolls until a Certificate of Occupancy is issued.1 This is not common practice in the assessment profession in other states. The general practice is that all property is assessed as of its status on the assessment date. For example, if a building is under construction as of January and is 50% complete on that date, then the assessor values the property as its 50% complete status and places this partial value on the annual assessment roll. Then the Certificate of Occupancy is issued, the assessor then reassesses the building and adds the additional increased assessment as a supplemental assessment on the next quarterly supplemental assessment date. Property receiving a change in zoning or specific use would also be adjusted based upon the assessment date. ~ Proration of New Assessment: In the assessment process outlined above, the additional increased assessment for the Supplemental Assessment is prorated from the date of the Certificate of Occupancy to the next January 1st annual assessment date. For example, if a building is 50% complete on January 1st and is valued at $100,000 for its incomplete building status and the Certificate of Occupancy is issued on following July 15\ the assessor adds the additional $100,000 to the value of the building for the Supplement Roll. The amount to be added to the July Supplemental Roll would be a prorated assessment in the amount of $50,000. ($100,000 X 6/12 = $50,000 or $100,000 X 0.5 = $50,000). The proration of this 3 additional assessment can be done either on a monthly basis (January = 1.00 factor, February = 0.917, March = 0.833 etc.) or daily basis (January 10 = 346/356 or 0.972). Both monthly and daily proration's are the basis of adding new construction to the assessment roll and are commonly used throughout the United States. ~ Addition of Property to Supplemental Roll when Used or Occupied: Clarify the time period that property can be added to the Supplemental Roll either by the date the Certificate of Occupancy is issued by the Building Inspection Department or in those cases when a Certificate of Occupancy is not issued but the new construction is being used or occupied for its intended purpose. This additional language of "being used or occupied for its intended purpose" will allow the assessor to add completed new construction to the supplemental roll whether or not a Certificate of Occupancy is issued. This case may occur for minor residential construction. ~ No Supplemental Addition if Increase is less the $25,000: The City should also codify the current assessment practice of not adding to the supplemental role any new construction of less than $25,000 in assessed value. This will eliminate the generation and collection of small tax bills that may in fact cost the City more dollars to process than is actually collected. The new construction of less than $25,000 will be 5 realized on the next annual assessment roll. Evaluation of the Practices & Procedures of the Assessor's Office & Appeal Process-June 2008

» Date of Assessment Roll Filing: The City should add to the City Code the date by which the Assessor is required to finalize and make the annual assessment role available for public inspection. Current practice is that the Assessment Register for the annual assessment roll is completed and available for public review on April 151 of each year. This is a reasonable amount of time for the Assessor to complete the roll after the January 1st assessment date and it is recommended that is current practice be codified. » Date of Notification of Assessment Increase: The City should add to the City Code the date or a period of time after the filing of the assessment roll by which the Assessor's Office must mail notifications of assessment changes to the property owner. It is generally an industry standard that the assessor must notify the property owner of changes in their assessment in a set period of time. This ensures that all 7 taxpayers receive a notice of assessment change and have sufficient time to file for an appeal if they chose to appeal their new assessment. » Elimination of Freehold Requirement: Eliminate the requirement set forth in Section 47 of the City Charter that, ·Assessor must be a freeholder within the corporate limits of the city." The requirement that the Assessor must be a freehold is an archaic requirement. No other City Official is required to be a freeholder. Also, the City Charter does not define the term ·freeholder". Interestingly, when we inquired about the definition of the term we received different answers from different City Officials. A common definition is "One who possesses a freehold." A freehold is .. ."An estate in land held in fee simple, in fee tail, or for term of life." There are two schools of thought on this issue of an assessor being a resident of the jurisdiction. Those in favor of a residence requirement believe that the Assessor should be a taxpaying property owner of the jurisdiction that employs them. On the other hand, those not in favor of a residency requirement believe that the requirement restricts the potential pool of applicants for the position, and places the Assessor in the position assessing their own property and the property of their neighbors. If the City Council wishes to continue the requirement that the Assessor be a resident of the City then, at a minimum, the Charter should be changed. Replace the term "freeholder" with ·a residenf. » Elimination of Certified Independent outside Appraiser for Reassessment: The City Code Section 102-1 should be changed to eliminate the requirement that the three year •... reassessment and valuation may be done by a certified independent outside appraiser chosen by the Council." Under current Delaware State statutes a certified appraiser must be an individual certified by the State Council on Real Estate Appraisers and hold such certification in accordance with Federal regulations set forth in the Financial Institutions Reform, Recovery and Enforcement Act of 1989, the act of August 9, 1989 (FIRREA). This certification is required for fee appraisers performing real estate appraisals for federally related transactions. Although Certified Real Estate Appraisers have demonstrated education and competency in appraisal and qualified as regulated professionals, this requirement is a very high standard for mass appraisal for assessment purposes. Jurisdictions similar to the City of Dover, utilize companies that specialize in mass appraisal for assessments. The City currently has contract with one such company. Although some of its employees may hold state certification it is very restrictive and expensive to require that all the properties be assessed using certified appraisers. Also, a different model of performing reassessments is discussed in the section "Adequacy of Staffing" below. » Income and Expense Reports: The City Code should be amended to allow the Assessor to require that owners of rental properties complete and file annual reports of income and expenses on forms developed by the Assessor's Office. Income and expense information is invaluable in developing the valuation of income producing properties, both as to the individual properties income and expenses and to the general information related to similar properties to develop typical income and expenses for comparable properties. Income producing properties are bought and sold on the real estate market on the basis of Ie) their ability to generate net income for their owners and the possible of future appreciation in value. The Income Approach to Valuation is the most common used methodology, by both assessors and fee appraisers, to value these types of property. Critical to this approach to valuation is accurate income and Evaluation of the Practices & Procedures of the Assessor's Office & Appeal Process-June 200B 2

expense information concerning the property being valued. Also critical to this approach is information concerning other comparable properties or typical property's operating income and expenses. Although there are national services that publish this type of information, the information is at best regional information that needs to be verified and adjusted to the local City of Dover real estate market to ensure accurate individual valuations for the taxpayers of Dover. » Update Tax Stamps Affixing for the Transfer Tax: City Charter in Article III, Section 102-74 and payment of the subsequent transfer sections tax. refer to Section 102-77 the affixing requires documentary of adhesive the Assessorstamps .... ."shall make to the provisions document of such stamps in such places as may be deemed necessary." This is outdated language. The Charter as for the sale evidence of I I should be updated to reflect the current practice of marking the document with an indication that the transfer tax has been paid and the amount paid. » Auditing of Transfer Tax: The City Code should be amended to state that the Assessor may review the payment and the "value" stated for purposes of this tax. The review or audit process should also state a Jd. period of time for the audit after the filing of the documents with the Assessor, such as ten (10) business days. » Update language in the Code to identify or clarify: "true value in money" as "full market value". Delaware State Code § 8306. Standard of assessment; requires all property subject to assessment shall be assessed at its true value in money. The clarification of true value in money, as the full market value of J3 the property as of the valuation date, (January 1st of each year) will go further in creating transparency in the assessment process. » Recommendations - Adequacy of Staffing The City may wish to consider that the three year reassessment be completed by a combination of in- house valuations for one to three family residential properties and outside contractors for the apartments, commercial and industrial properties and valuation modeling. This model of conducting a revaluation is often a transitional model between using outside services completely for reassessment and complete in- house reassessment. If the City staffs the Assessor's Office with an additional Residential Assessment Technician, changes the position of part-clerk to a full time clerk, fills the current vacancy in either the Assessor's position or Assistant Assessor position (see Appendix A - 4) it is possible for the City to perform the reassessment with the more limited assistance of an outside contractor. » Recommendation - Management Style .g Annually the Assessor should continue to adopt and communicate a set of specific goals delineating the- uu {Formatted: Bullets and Numbering expectations for the Assessor's Office for the coming year. This should include a level of assessment, what equity measures will be used and what the expected equity level is, the number of parcels to be physically inspected, the expected number of permits to be worked, deeds to be processed, land splits, etc. and a quality measure of acceptable error rates. Annually, the Assessor should adopt and communicate an annual assessment calendar. The calendar-ouo [Formatted:BulietsandNumbering should include all important legislative and city dates, IT deadlines for data entry closings, important processing dates and periodic benchmark dates reflecting the levels of tasks that must be done to achieve the goals. Institute a Quality Review Program to determine data quality and error rates, as well as uniformity of- om {Formatted: Bullets and Numbering practices within the office. After setting the annual goals the Assessor should meet with pertinent staff to develop a strategic plan to- achieve the goals. 00. iFormatted: Bullets and Numbering Evaluation of the Practices & Procedures of the Assessor's Office & Appeal Process-June 2008 3

I;lA search feature for recent sales of properties, at minimum for residential properties, should be added.· Formatted: Bullets and Numbering u ( This query function could consist of a "drop-down" list of neighborhoods or sub-sections of the city allowing the user to select a subdivision to view recent sales that have occurred within that subdivision. The Assessor's Office Annual Report should be directly available on the Web site. I;llt would be helpful to the public for the Assessor's office to provide copies of the applications for such- ----- ( Formatted: Bullets and Numbering initiatives as tax relief for Senior and Disabled Citizens, the program for the Tax Abatement for Agricultural in the Assessor's Section of the web site. Also during the time for filing tax relief applications for seniors and disabled citizens a highlighted link should be on the home page of the City's site for public awareness of this program to assist the eligible taxpayers of the City. BThe information for appealing one's assessment to the Board of Tax Review should be located in the- _B __ (Formatted: Bullets and Numbering Assessor's Section of the web site. Although these documents are available on the web site if the visitor searches the site to find them, it is not intuitive to a taxpayer where to find these documents on the site. Information concerning the appeal process should listed both in the both the Assessor's section of the site and in a Board of Tax Review section of the web site. Also, currently the Board of Tax Review's Appeal forms and Policy Statements are on the web, it would be more meaningfully and user-friendly if these policy statement were incorporated into one document that the taxpayer can see and print rather than searching the site and hoping that they found all the information that is needed for submitting an appeal. I;lThe Web site needs to be updated regularly to ensure that the public has access to the most accurate- --- B { Formatted: Bullets and Numbering information. ~ Recommendations - Appraisal Methodology Retrain and rededicate their efforts to become a mass appraisal office, maximizing the use of ias World's capabilities in valuing, analyzing, and reporting. ~ Recommendations - Appraisal Data All the data fields in the CAMA system be defined in the new appraisal manual and the appraisers conduct an analysis of the valuation model to determine if they are collecting the appropriate data for the factors that affect value in the City of Dover. ~ Recommendations: - Appeals and Board of Tax Review Hit is recommended that the City of Dover develop a similar impartial Board to review formal complaints- .. u (Formatted: Bullets and Numbering from taxpayers. The Board can be elected by the voters of the City or appointed by the City Council. The terms of appointment should be for a period of at least four years, in order for members to gain experience in this area of valuation and should have terms that expire in staggering years, so that there is always ILJ some experienced members on the Board. I;llf such an independent Board is created it should be named Board of Assessment Appeals or Board of· -- -- (Formatted: Bullets and Numbering Assessment Review. The word "tax" should not be the name of the Board as it is not a "tax" review board but a board that reviews the valuation or assessment of properties. This name change may remove the misconception that the Board can reduce the tax burden on a property owner. -8The City Code should include a section on property tax exemptions for governmental property. Certainly- ---- ( Formatted: Bullets and Numbering property owned by high levels of government should be exempt by right as these governmental bodies will not pay local property taxes and the current process of the Assessor appealing on behalf of these governments before the City Council does not seem to be a good use of time. The following property o Property owned by the United States owners should be exempt by right and do not have to apply for the exemption: o Property Owned by the State of Delaware /5 o Property owned by the County o Property owned by the City Evaluation of the Practices & Procedures of the Assessor's Office & Appeal Process-June 2008 7

;:;'The City Code should include a section on property tax exemptions for religious, educational, and other- - - n ! Formatted: Bullets and Numbering not-for-profit organizations_ The typical standard for these exemptions is that the property must be owned by the organization and be used for the intended purpose that serves a public benefit. Another characteristic standard for these property tax exemptions is that the organization hold an exemption from federal taxes in compliance with Section 500 (c) (3) of the Internal Revenue Code of 1954 as amended and/or a State tax exemption as issued by the State's Department of Revenue. The Code should set forth a process for applying for the exemption and periodic review of property that received the exemption to ensure that they are still in compliance. tiThe City Code should be amended to include a section on the exemption process. The exemption can be- ---- - j Formatted: Bullets and Numbering processed and granted by the Assessor or by the recommended Appeals Board. Either of these two alternates is common in the United States. Often there is a requirement that the exemption application is reviewed by the City's legal counsel to ensure that the organization and property comply with the legal requirements set forth for the exemption. It is also recommended that a review of the existing exempt properties be performed to determine the current status of those property owners receiving exemptions and to confirm their continued 501(c) (3) tax exempt status. A review period of once every five or six years should be codified in the City Code to ensure that the properties receiving an exemption continue to quality for the exemption from the City's property tax. GThe Assessor's Office and Board of Tax Review must apply their rules and procedures for the appeal· - n_ (Formatted: Bullets and Numbering process consistently and fairly to all taxpayers. Public trust and acceptance of a tax system is based on the tax being applied "fairly and equitably" to all taxpayers. :::The requirement, that is stated in the Board's Tax Policy #3 "Procedure For- m __ ! Formatted: Bullets and Numbering CommercialllndustriaVincome Producing Properties", that these appeals must include a "self-contained written appraisal report" is too high a standard at this level of appeal. The general practice of documentation for an appeal is that this highest standard of a USPAP compliant appraisal is not required until the third level of the appeal process - the appeal to the state court. The general and more typical standard, at the second level of appeal before a formal board of review, is a recommendation that a summary appraisal is submitted to the local appeal board. A summary appraisal is required to meet all the USPAP standards but is not fully written in a report. An appeal should not be documentation dismissed solelyand evidence on the that they lack of believe submitting a is relevant USPAP to theirThe appraisal. case and it is the taxpayer function should be ableoftothe Boardthe submit to J /l{)~ make its decision based on the quantity, quality and credibility of the evidence submitted by the taxpayer. In many cases the issue(s) of the appeal and valuation of the property do not require an appraisal but may be issues of law or facts. Also, for many complex commercial properties even the time period for the owner to contract an appraiser that is qualified to appraise the type of property under appeal is greater than thirty days and the time to produce a USPAP compliant appraisal can be many months. Evaluation of the Practices & Procedures of the Assessor's Office & Appeal Process-June 2008 8

EXCERPT OF NOVEMBER 13, 2007 COUNCIL MINUTES The Regular Council Meeting was held on November 13, 2007 at 7:30 p.m. with Council President Williams presiding. Council members present were Mr. McGlumphy, Mr. Slavin, Mr. McGiffin, and Mr. Salters. Mrs. Russell, Mr. Hogan, and Mr. Ruane were absent. SUPPLEMENTARY PROPERTY ASSESSMENTS - TIME FOR APPEAL/APPRAISAL SUBMISSION During their Regular Meeting of October 22, 2007, City Council adopted a recommendation of the Tax Appeals Committee to extend the time allowed for tax appeals and the submission of appraisals. The recommendation was to extend the time to allow for an appeal from 14 days to 30 days and an additional 60 days for a commercial/industrial property to submit an appraisal as part of the appeal process in cases requiring such appraisals. The Tax Appeals Committee’s intent was to have these extended times to apply to tax billings resulting from the quarterly supplemental property reassessments, including the quarter that ended September 30, 2007; however, this was not made explicit in the motion that was approved. By making this explicit, Council will assure due process for any appeal of supplemental tax billings for the period ending September 30, 2007. Staff recommended that the Tax Assessor be instructed to allow 30 days for a tax appeal of supplemental tax billings for the quarter ending September 30, 2007 and an additional 60 days for commercial/industrial property owners to provide an appraisal in those cases where such an appraisal is required. Mr. Salters moved for approval of staff’s recommendation, seconded by Mr. McGlumphy and carried by a unanimous roll call vote (Mrs. Russell, Mr. Hogan, and Mr. Ruane absent).

EXCERPT OF OCTOBER 22, 2007 COUNCIL MINUTES The Regular Council Meeting was held on October 22, 2007 at 7:34 p.m. with Council President Williams presiding. Council members present were Mrs. Russell, Mr. McGlumphy, Mr. Slavin, Mr. McGiffin, Mr. Hogan, Mr. Salters, and Mr. Ruane. TAX APPEALS COMMITTEE REPORT - OCTOBER 15, 2007 The Tax Appeals Committee met on October 15, 2007 with Chairman Ruane presiding. Appeal Process Members requested a better understanding of the Appeal Process and Procedures to aid in the upcoming/ongoing appeals, and requested that more focus be given to the Commercial/Industrial Properties. Members were provided Tax Policy #3, adopted by City Council on November 13, 2006, and the State of Illinois Administrative Code. Mr. Capuano explained that he has used the Administrative Code in the past, and although it was good for the size and scope of the State of Illinois, he did not feel it would work as well for the City of Dover. Mr. Capuano stated that the residential properties are generally not an issue during the appeal process, due to the nature of the complaints. They are usually due to a factual error and can usually be corrected or negotiated between the Assessor’s Office and the property owner. Responding to Mr. Ruane, Mr. Capuano explained the appeal process timeline, as follows: Annual Appeal: May 01 of each year, the Assessor’s Office displays the final values for the new assessment/tax year. Property owners are given fourteen (14) days to appeal their value. This date is given to them at the time assessment registers are displayed. Supplemental Appeals: On October 01, January 01, and April 01 of each year, the Assessor’s Office sends out Supplemental Bills to the property owners for new construction, permits, annexations, etc. At the time a supplemental bill is sent out, the property owner is given a “new” value. They are, in letter form, given fourteen (14) days from the date of the letter to appeal their value, if they so desire. The fourteen (14) day appeal deadline is not in writing, but has been a precedent with the Assessor’s Office on the annual appeals for at least the past fifteen (15) years. Mr. Capuano stated that any changes in the appeal process may affect the tax collection process. Members discussed alternatives for handling appeals. The committee recommended for the Tax Appeal Process to be backed up to March 31st for initial annual change of assessment notices; the appellant has thirty (30) days (April 30th) to appeal any differences from the prior tax year; if the appellant requires an appraisal, an additional sixty (60) days for a commercial/industrial property will be given; and that this additional sixty (60) days will also be applied to Supplemental Billing for Commercial/Industrial properties, if the appellant requires an appraisal. By consent agenda, Mr. McGlumphy moved for approval of the committee’s recommendation, seconded by Mrs. Russell and carried by a unanimous roll call vote.

ACTION FORM PROCEEDING: Legislative, Finance, and Administration Committee DEPARTMENT OF ORIGIN: City Manager’s Office DATE SUBMITTED: 04/27/2009 PREPARED BY: Terry Tieman, Senior City Administrator SUBJECT: Proposed Ordinance Amendments – New Appendix F – Fee Schedule REFERENCE: City of Dover Charter and Code RELATED PROJECT: None APPROVALS: Council; Planning Commission EXHIBITS: Proposed Appendix F – Fee Schedule EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: 1st Reading May 11, 2009; Planning Commission Review/Public Hearing June 15, 2009; Public Hearing and Final Reading June 22, 2009 RECOMMENDED ACTION: Staff recommends approval of Proposed Ordinance No. 2009-09 creating Appendix F – Fee Schedule BACKGROUND AND ANALYSIS For ease of reference and revision, staff has a prepared Proposed Appendix F – Fee Schedule which consolidates all City fees and charges into one appendix of the City of Dover Code. A comprehensive schedule would make changing, adding, or deleting a fee(s) more efficient by only requiring a change to the fee schedule. Currently, if several fees are changed these changes require changing the code in several different places. Staff recommends approval of the proposed ordinance creating Appendix F – Fee Schedule.

Appendix F. Fee Schedule Fees, Rates, Charges Code Section Description (in dollars) Subpart A - CHARTER, ARTICLE II - MAYOR AND COUNCIL Section 18 Ordinances authorized; maximum penalty for violation $1,000.00 Subpart B - CHARTER AND RELATED LAWS Section 2 Licenses $100.00 paragraph (c) Fines CODE OF ORDINANCES Chapter 10 - Alcoholic Beverages Sec. 10-1 Consumption or possession, $100.00 paragraph (c) Underage persons Chapter 18 - Animals Sec. 18-17 Violations; fines Not less than $10.00 Section 18-7; for each violation Or more than $100.00 Sections 18-3,18-4, 18-5, 18-8 and/or 18-13; for each Not less than $25.00 violation Or more than $100.00 Not less than $50.00 Section 18-6; for each violation Or more than $100.00 Sections 18-9 and/or 18-12, for each violation $100.00 Chapter 22 - Buildings and Building Regulations, Article III - Building Code Section 22-61 Adopted Sec. 113.4 Violation penalties Not less than $100.00 Or more than $10,000.00 Sec. 114.3 Unlawful continuance First offense $100.00 Second offense $250.00 Third offense $500.00 Fourth offense, no less than $1,000.00 and no more than $10,000.00 Sec. 22-65 Permit fees $25.00 for first $1,000.00 of paragraph (a) Building permits costs; $8.00 for each additional $1,000.00 of costs or multiples thereof up to $10,000,000.00 of costs paragraph (a) Fence permits $25.00 for first $1,000.00 of costs; $8.00 for each additional $1,000.00 of costs or multiple thereof paragraph (a) Sign permits $0.50 per square foot of sign area; minimum fee for each permit $15.00 paragraph (a) Swimming pool permits $25.00 for first $1000.00 of costs and $8.00 for each additional $1,000.00 of costs paragraph (a) Demolition permits, any building $50.00; $0 if 1

condemned by the City paragraph (a) Moving permits, each building $250.00 paragraph (a) Construction plan reviews, per set $20.00 paragraph (b) Reinspections $0.00 Second reinspection $25.00 Third reinspection $50.00 Any subsequent reinspection $100.00 Chapter 22 - Buildings and Building Regulations, Article V - Mechanical Code Sec. 22-145 Heating, air conditioning and heat pump permit fees paragraph (a) Heating permit $30.00 first 10,000 BTUs, $5.00 each additional 10,000 BTUs or multiples thereof. paragraph (a) Air conditioning permit $30.00 per ton, first 5 tons. $5.00 per ton over 5 tons or multiples thereof. paragraph (a) Heat pump permit $15.00 first 10,000 BTU’s $2.50 each additional 10,000 BTUs or multiples thereof. Additional $15.00, first 5 tons and $2.50 per ton over 5 tons or multiples thereof. Chapter 22 - Buildings and Building Regulations, Article VI - Plumbing Code Sec. 22- 185 Permit fees $25.00 first 5 fixtures & $2.00 for Fixtures each additional Garbage disposal and hot water heaters $25.00 minimum fee Gas, water and sewer inspection underground $20.00 for first 150 feet and $0.50 for each additional 10 feet or multiples thereof. Chapter 22 - Buildings and Building Regulations, Article VIII - Leases Sec. 22-251 Unlawful leases paragraph (g) Violations; penalties - First offense $50.00 - Each subsequent offense $100.00 Chapter 22 - Buildings and Building Regulations, Article IX - Lodging Houses, Division 2 - Permit Sec. 22-301 Generally paragraph (b) Expiration fee $50.00 for the first ten rooms and $5.00 for each additional room. Dormitory fee $50.00 for the first ten rooms, and $2.50 for each room thereafter. paragraph (d) Reimbursement fee $100.00 2

Chapter 22 - Buildings and Building Regulations. Article X. Rental Dwellings, Division 2 - Permit Sec. 22-351 Generally paragraph (a) Single family dwellings $90.00 for each single-family detached dwelling. $70.00 for each single-family attached dwelling. paragraph (b) Multiple family dwellings $90.00 for multiple dwellings consisting of three or less dwelling units, $90.00 for the first three dwelling units of a multiple dwelling with four or more dwelling units, $30.00 for each additional dwelling unit in excess of three. $30.00 for condominium units and accessory apartments located within structures principally used for owner occupancy. paragraph (d) Reinstatement fee $100.00 Chapter 22 Buildings and Building Regulations. Article XI. Dangerous Buildings. Sec. 22-386 Violations; penalties for disregarding notices or orders paragraph (a) Violation by owners; minimum, for each offense $100.00 paragraph (b) Violations by occupant or lessee; minimum, for each $100.00 offense paragraph (c) Removal of notice; not exceeding, for each offense $100.00 Chapter 22 Buildings and Building Regulations. Article XII. Vacant Buildings Sec. 22-403 Registration and Registration Fees paragraph (a)(2)biii Registration fee Buildings vacant one year or less; $250.00 Buildings vacant for more than one year but less $500.00 than two years Buildings vacant for more than two years but less $1,000.00 than five years; Buildings vacant for five years or longer. $2,000.00 Chapter 26 Businesses. Article II. Licenses Sec. 26-35 License required; fees paragraph (d)(1) Businesses licensed. Advertising agency $92.00 Amusement Operator $152.00 Architect $242.00 Attorney-at-law $303.00 Auctioneer $152.00 Automobile race operator $363.00 Bank, or loan and trust company $303.00 Barber $61.00 - each additional chair over two $4.00 Beautician $61.00 - each additional chair over two $4.00 Bowling alley operator $182.00 Broadcasting station $303.00 Broker $152.00 Car Wash $182.00 3

Sec. 26-35 License required; fees – continued Certified Public Accountant $242.00 Cesspool cleaner $121.00 Chiropractor $303.00 Clinical Social Worker $93.00 Coin-operated amusement machine owner - per machine $3.00 Coin-operating vending machine owner $3.00 - per machine Coin-operated electronic video machine $121.00 - per machine Commercial sign business $121.00 Computer related services $121.00 Consultant $49.00 Day care operator: Home based provider with six or fewer $0.00 children Center or home provider with greater $49.00 than six children Dental lab $182.00 Dentist $303.00 Distributor $61.00 Dray person or mover $121.00 Eating establishment and/or eating establishment $121.00 operator Employment agency $121.00 Entertainer: One – three entertainers per group $49.00 Four – nine entertainers per group $92.00 Ten or more $121.00 Entertainment agent $182.00 Finance or small loan agency $242.00 Funeral director $242.00 Gas, light, power, cable TV and telephone company $908.00 General repairman $61.00 Health spa or health club $182.00 Hotel: Per room $9.00 Per suite $12.00 Income tax consultant $182.00 Incorporator $121.00 Insurance adjustor office $121.00 Itinerant merchant, per event $40.00 Janitorial and cleaning service: One – three employees $49.00 Four – nine employees $92.00 Ten or more employees $121.00 Landscape service company: One – three employees $49.00 Four – nine employees $92.00 Ten or more employees $121.00 4

Sec. 26-35 License required; fees – continued Laundry service operator: Primary facility $121.00 Additional drop-off locations $49.00 Linen supplier $121.00 Manicurist $31.00 Manufacturer’s agent or representative $121.00 Mercantile agency or collection agency $121.00 Mobile home park, per space $7.00 Motel, per room $7.00 Motion picture theater $182.00 Motor vehicle serviceman $92.00 Nursing, rest or convalescent home $182.00 Open market operator: First 20 spaces, per rented space $22.00 21st – 50th space, per rented space $11.00 Each space over 50, per rented space $6.00 Outdoor tables, per table $6.00 Optometrist $303.00 Outdoor music festival promoter $1,210.00 Parking lot or garage operator $61.00 Pawnbroker $182.00 Pest control services $92.00 Pharmacist $182.00 Photographer $121.00 Physical therapist $182.00 Physician and/or surgeon $303.00 Plant nursery and florist $92.00 Podiatrist $303.00 Pool table operator, per table $61.00 Maximum fee $183.00 Printer $121.00 Private investigator agency $182.00 Professional counselor $61.00 Professional engineer $242.00 Professional land surveyor $242.00 Psychologist $303.00 Public accountant $182.00 Public stenographer $37.00 Publisher $303.00 Real estate broker, appraiser and manager $152.00 Real estate manager: One – three units managed $49.00 Four – ten units managed $121.00 Ten+ units managed $121.00 Real estate salesperson or associated broker $49.00 Rental service $121.00 Sales representative $49.00 5

Sec. 26-35 License required; fees – continued School and educational service (non-vocational) $61.00 School and educational service (vocational) $121.00 Scientific laboratory $242.00 Scrap and waste material service $121.00 Secondhand dealer of precious metals $121.00 Security service $182.00 Self-service laundry or dry cleaner $121.00 Shoe repairman $49.00 Sound truck, per hour $31.00 Tailor and garment service $49.00 Taxicab or bus operator: First vehicle $25.00 Each additional vehicle $25.00 Taxidermist $121.00 Telephone answering service $121.00 Television repairman $92.00 Tourist home, per room $7.00 Trailer park, per space $7.00 Travel Agency $121.00 Veterinarian $303.00 Warehouseman $242.00 Wholesale news agency $61.00 All other businesses not listed: One – three employees $49.00 Four – nine employees $92.00 Ten – 50 employees $121.00 51 – 100 employees $303.00 paragraph (d)(2) Manufactures/contractors rate: $0.00046 of $121.00 aggregate gross receipts; minimum fee paragraph (d)(3) Merchants/bottlers rate: $0.00046 of aggregate gross purchases for resale; minimum $61.00 fee Chapter 26 - Businesses. Article III. Going-Out-Of-Business Sales; Fire Sales $25.00; renewal fee Sec. 26-137 Fees $25.00 Chapter 30 – Code of Conduct and Ethics Commission, Article II. Code of Conduct Sec. 30-33 Prohibitions relating to conflicts of interest paragraph (g) (1) Criminal Sanctions, penalties - Not to exceed $1,000.00 Chapter 42 – Environment Sec. 40-2 Noise paragraph (d) Violations; penalties - Not less than $50.00 - Nor more than $100.00 Chapter 46 – Fire Prevention and Protection. Article I. In General Sec. 46-3 Impairment of Fire Protection Equipment paragraph (d) Fines - First offense $50.00 - Second and subsequent offenses $100.00 6

Chapter 46 – Fire Prevention and Protection. Article III. Fire Codes Sec. 46-126 Fire Prevention Permit paragraph (b) Fee $12.00 for each $1,000.00 of costs or multiple thereof of the fire protection system; provided that a minimum fee for each permit shall be $50.00. paragraph (c) Reinspection - First reinspection No charge - Second reinspection $25.00 - Third reinspection $50.00 - Any subsequent reinspections $100.00 Sec. 46-127 Smoke detection devices paragraph (g) Violations; penalties - Not more than; per violation $100.00 Chapter 46 - Fire Prevention and Protection. Article IV. Public Occupancies Sec. 46-164 Fees Churches $25.00 Civic auditoriums $25.00 Clubhouses $50.00 $25.00 – first 200 seats and $2.50 Commercial auditoriums for each additional 50 seats Day care facilities 25.00 $5.00 – first 10 rooms and $1.25 Hospitals, nursing homes or rest homes for each additional room Mercantile (10,000 square feet or greater) $25.00 Outdoor public events including but not limited to firework displays, carnivals and outdoor music $25.00 concerts Public office buildings $25.00 Schools $25.00 Theaters, first 200 seats $25.00 each additional 50 seats $2.50 Sec. 46-168 Reinspection Fee paragraph (a) Amount $25.00 Chapter 50 – Floods. Article II. Flood Damage Prevention Sec. 50-50 Violation and non-compliance; penalties Not less than $25.00 Nor more than $100.00 Chapter 54 – Health and Sanitation. Article I. In General Sec. 54-4 Smoking Regulations paragraph (d)(2) Violations; penalties; appeals Penalties Not to exceed $25.00 7

Chapter 54 – Health and Sanitation. Article II. Food and Food Handlers, Division 2 - Certificate Sec. 54-52 Fee paragraph (a) Type of Establishment - Mobile food units $50.00 - Push carts $25.00 - For profit temporary eating places $25.00 - Membership clubs $50.00 - Institutions $100.00 paragraph (b) - Breakfast service $15.00 - Lunch service $18.00 - Dinner service $18.00 - Salad bar service $15.00 - Hot and cold buffet, including salad bar service $40.00 - Drive through service $75.00 - Delivery service $20.00 - Catering service $15.00 - Takeout service $20.00 - Seating service: 100 – 150 $50.00 151 – 200 $75.00 201 or more $100.00 Chapter 62 – Law Enforcement. Article I. In General Sec 62-2 False Alarms to Police paragraph (c)(1) Violations; penalties Number of false alarms; amount of fee per false alarm 3 – 5 false alarms $25.00 5 – 9 false alarms $50.00 10 – 15 false alarms $100.00 15 or more false alarms $150.00 Chapter 66 – Manufactured Homes and Trailers. Sec. 66-2 License paragraph (a) Required fee $45.00 Chapter 70 – Offenses and Miscellaneous Provisions. Sec. 70-1 Combative fighting paragraph (d) Violations penalties paragraph (1) Fines; an amount not to exceed $100.00 Chapter 74 – Parks and Recreation Article I. In General Sec. 74-51 Same – Fine Not to exceed $100.00 Not less than $10.00 8

Chapter 86 – Secondhand Goods, Article II. Precious Metals, Division 2. License Sec. 86-63 License Fee $25.00 Sec. 86-64 Bond Required $1,000.00 Chapter 90 – Solid Waste Sec. 90-17 Violations; penalties Per violation, not in excess of $100.00 Nor less than $5.00 Chapter 98 – Streets, Sidewalks and other Public Places, Article V. Excavations, Division 2. Permits Sec. 98-193 Bonds Per opening, up to the sum of $5,000.00 Chapter 98 – Streets, Sidewalks and other Public Places, Article VI. Parades, Division 2. Permits Sec. 98-243 Fee To be paid at the time of filing $10.00 Chapter 102 – Taxation, Article I. In General Sec. 102-2 Delinquent property tax collection Action to collect delinquent property taxes filed paragraph (a) in a court of appropriate jurisdiction, fee added $50.00 to amount due Action proceeds and a writ of venditioni exponas paragraph (b) monition or similar execution process is filed, an $100.00 additional fee added to amount due Chapter 102 – Taxation, Article III. Reality Transfer Tax Sec. 102-79 Violations; penalties Not more than $100.00 Chapter 106 – Traffic and Vehicles, Article I. In General Sec. 106-14 Off road motor vehicle regulations paragraph (d) Penalties - Minimum $25.00 - Maximum $100.00 Failure to stop for a red traffic signal; traffic light signal Sec. 106-15 violation monitoring program; penalties. paragraph (b) Traffic light signal violation monitoring program paragraph (3) Civil or administrative assessment $75.00 - if not paid within 14 days, additional $10.00 assessment shall be added to original assessment - if not paid within 45 days, original assessment $20.00 shall be increased - if not paid within 90 days, original assessment $30.00 shall be increased - Court costs or similar administrative fees; not $30.00 to exceed Sec. 106-16 Violations paragraph (a)(1) Moving offense, minimum fine $10.00 paragraph (a)(2) Non-moving offense; minimum fine $15.00 paragraph (a)(3) Parking violation; for each offense $20.00 - If fine is paid within 72 hours from the date of $15.00 9

the offense is recorded in time, the fine shall be Chapter 106 – Traffic and Vehicles, Article II. Bicycles Sec. 106-55 Penalties for violation Fine not to exceed; $100.00 Not less than. $10.00 Chapter 106 - Traffic and Vehicles. Article III. Stopping, Standing and Parking, Division II. Metered Parking Sec. 106.164 Violations; penalties For each offense, within 24 hours from time paragraph (a) $1.00 summons of violation is issued, per violation After 24 hours, per violation. If payment is made $2.00 voluntarily prior to the time and date set Fourth violation, within any 30-day period. Within paragraph (b) one hour of the time that summons giving notice of $1.00 violation was issued, per violation After expiration of one hour from issuance of $2.00 summon, for each violation Fifth violation, etc. More than four violations within paragraph (c) $5.00 30-day period, for each violation Chapter 114 – Vegetation. Article II. Weeds Failure to maintain proper height; abatement by city; Sec. 114-33 costs and lien. - Per hour for such work that must be done to render paragraph (a) $50.00 the property compliance with Sec. 114-32 Sec. 114-34 Fines paragraph (a) Generally - Fine of not less than $25.00 - nor more than $100.00 paragraph (c)(1) Minimums - First offense $25.00 - Second offense $50.00 - Third and subsequent offenses $100.00 Chapter 118 – Vehicles for Hire, Article II. Taxicabs, Division 2. Operators Permit Sec. 118-54 Fee $5.00 10

Appendix F. Fee Schedule Appendixes A & B Fees, Rates, Charges Code Section Description (in dollars) Appendix A. Subdivisions, Article IV. Subdivision – Procedures Section A Pre application paragraph 2 Filing Fee $200.00 Section B Preliminary Layout paragraph 2 Filing Fee $325.00 Section C Plat $150.00, plus $65.00 per acre for the 1st ten acres; $40.00 paragraph 3. Plat Plan Review Fee per acre for the next 10 acres and $25.00 per acre for each acre thereafter - Minor lot line adjustments $100.00 - Minor subdivisions $100.00 Appendix B. Zoning, Article 3. District Regulations Section 24 Planned Neighborhood Design Option (PND) paragraph 24.2 Review Process Fee 100.00 paragraph 24.8 Conditional Use Plan Approval $200.00, plus paragraph 24.81 Conditional Use Fee $10.00 per acre Site Development Preliminary Subdivision Plan paragraph 24.9 Review $325.00, plus paragraph 24.91 Fee $20.00 per acre paragraph 24.10 Final Subdivision Plat Approval paragraph 24.101 Preliminary Plan Approval Fee Section 28 Traditional Neighborhood Design Zone (TND) paragraph 28.4 Procedure Application for rezoning and general overall paragraph 28.41 master plan review paragraph 28.411 Minimum Rezoning Amendment Fee $325.00 paragraph 28.42 Application for implementation plan review paragraph 28.422 Plan Review Fee $325.00 plus $10.00 per acre paragraph 28.43 Following implementation approval - Site Development Plan or Subdivision paragraph 28.434 $250.00 Plat Fee 11

Appendix F. Fee Schedule Appendix B. - Continued Appendix B. Zoning, Article 5. Supplementary Regulations Section 4 Supplementary Sign Regulations paragraph 4.8 Unified campuses and complexes paragraph D Submission requirements paragraph 4 Application Fee $200.00 Appendix B. Zoning, Article 8. Enforcement and Penalties Section 2 Certificates of Occupancy paragraph 2.4 All properties zoned single-family residential $400.00 All other property in other zoning classifications, $40.00 for the first 20,000 other than single-family residential square feet of building area, plus the sum of $10.00 for each additional 10,000 square feet of building area in excess of the first 20,000 square feet or multiple thereof Appendix B. Zoning, Article 9. Board of Adjustments Section 3 Procedure paragraph 3.5 Variance requests for residential uses $200.00 Variance requests for nonresidential uses $300.00 Appeals from an order, requirement, decision or determination made by an administrative official, $200.00 board or agency of the city Appendix B. Zoning, Article 10. Planning Commission Section 1 Approval of Conditional Uses paragraph 1.5 Application procedure $325.00, plus $15.00 per acre of the area or multiple paragraph 1.52 Conditional Use Permit Fee thereof involved in the conditional use application Section 2 Site development plan approval paragraph 2.4 Procedure Paragraph 2.45 Fees - Site Development Plan Approval Fee $325.00 - Administrative Site Plans Applications $125.00 12

1 CITY OF DOVER ORDINANCE #2009-09 2 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN 3 COUNCIL MET: 4 That Chapter 10 - Alcoholic Beverages, be amended by inserting the blue text and deleting the 5 text in red strikeout, as follows: 6 Section 10-1 Consumption or possession, 7 (a) Definitions. The following words, terms and phrases, when used in this section, 8 shall have the meanings ascribed to them in this subsection, except where the context 9 clearly indicates a different meaning: 10 Alcoholic liquor means as defined per title 4 of the laws of the state (4 Del. C. § 101 et 11 seq.). 12 Public place means any place to which the general public has access and a right to resort 13 for business, entertainment, or other lawful purposes, but does not necessarily mean a 14 place devoted solely to the use of the public. It shall also include the front or immediate 15 area of any store, shop, restaurant, tavern, or other place of business and also public 16 grounds, areas, or parks. 17 (b) Public places. Except when permitted by federal, state, county or municipal law, it 18 is unlawful for any person to consume, or possess with the intent to consume, any 19 alcoholic liquor in or upon any street, alley, highway, public way, public building or 20 public place within the city. 21 (c) Underage persons. Whoever, being under the age of 21 years, has alcoholic liquor in 22 his possession at any time, or consumes or is found to have consumed alcoholic liquor, 23 shall be fined $100.0000 as provided for in Appendix F. This subsection shall not apply 24 to the possession or consumption of alcoholic liquor in connection with any religious 25 service or by members of the same family, provided at least one of the members is of age, 26 within the private home of any of the said members. Fines not paid within 14 days of the 1

27 day the fine was issued, including the day the fine was issued, shall be automatically 28 doubled in amount. (Code 1981, § 14-6.1; Ord. of 6-11-1984; Ord. of 10-25-1999; Ord. 29 of 9-22-2003) 30 31 BE IT FURTHER ORDAINED THAT: 32 Chapter 18- Animals, be amended by inserting the blue text and deleting the text in red strikeout, 33 as follows: 34 Section 18-17. Violations; fines. 35 (a) Any person convicted of a violation of this chapter shall pay a mandatory and 36 nonsuspendable fine of at least the minimum fine for each offense as follows: as provided 37 for in Appendix F. 38 (1) Any person convicted of violating the provisions of section 18-7 shall be 39 sentenced to pay a fine not less than $10.00, or more than $100.00 for each 40 violation. 41 (2) Any person convicted of violating the provisions of sections 18-3, 18-4, 18-5, 42 18-8, and/or 18-13 shall be sentenced to pay a fine of not less than $25.00, or 43 more than $100.00 for each violation. 44 (3) Any person convicted of violating the provisions of section 18-6 shall be 45 sentenced to pay a fine not less than $50.00, or more than $100.00 for each 46 violation. 47 (4) Any person convicted of violating the provisions of sections 18-9, and/or 18- 48 12 shall be sentenced to pay a fine of $100.00 for each violation. 49 (b) Fines not paid within 14 days of the day the fine was issued, including the day the 50 fine was issued, shall be automatically doubled in amount. (Code 1981, § 4-14; Ord. of 8- 51 28-1995; Ord. of 9-22-2003) 52 2

53 BE IT FURTHER ORDAINED THAT: 54 Chapter 22 - Building and Building Regulations, Article III - Building Code, be amended by 55 inserting the blue text and deleting the text in red strikeout, as follows: 56 Sec. 22-61. Adopted. 57 (a) International Building Code adopted. Certain documents, three copies of which are 58 on file in the licensing and permitting office of the city being marked and designated as 59 "The International Building Code, 2003 Edition" as published by the International Code 60 Council be and is hereby adopted as the Building Code of the City of Dover in the State 61 of Delaware; for the control of buildings and structures as herein provided; and each and 62 all of the regulations, provisions, penalties, conditions and terms of said International 63 Building Code, are hereby referred to, adopted and made a part hereof as if fully set out 64 in this section, with the additions, insertions, deletions and changes as follows: 65 Section101.1. Title Insert "City of Dover, DE" in place of "[NAME OF 66 JURISDICTION]" Section 105.2. Work exempt from permit. Delete section in its 67 entirety. 68 SECTION 106 CONSTRUCTION DOCUMENTS 69 Section 106.1. Insert: "for new construction, alterations, repairs, expansion, 70 additions or modifications of buildings or structures, which involve the practice 71 of architecture or engineering, as defined by the professional registration laws of 72 the State of Delaware shall be prepared by a registered design professional 73 consistent with the professional registration laws of the State of Delaware. 74 Construction documents shall include the name, address and license or 75 registration number of the registered design professional and shall be signed, 76 sealed and dated by the registered design professional in accordance with the 77 professional registration or licensing laws, statutes, regulations or administration 78 provisions of the State of Delaware." in place of "shall be prepared by a 3

79 registered design professional where required by the statues of the jurisdiction in 80 which the project is to be constructed." 81 Section 108.3. Insert: "see Section 5-21 Fees for permits" [Section 22-65, Permit fees] in 82 place of "in accordance with the schedule as established by the applicable governing 83 authority". 84 Section 112. BOARD OF APPEALS. Delete section in its entirety. 85 Section 113.4. Violation Penalties. Insert: "Any person who violates a provision of this 86 code or fails to comply with any of the requirements thereof or who erects, constructs, 87 places, alters, repairs, a building or structure in violation of the approved construction 88 documents or directive of the building inspector, or of a permit or certificate issued under 89 the provisions of this code shall be charged with a violation of this code and be guilty of a 90 misdemeanor, punishable by a fine of not less than $100.00 or more than $10,000.00 as 91 provided for in Appendix F, or by imprisonment thirty (30) days, or both such fine and 92 imprisonment. Each day that a violation continues shall be deemed a separate offense." in 93 place of "Any person who violates a provision of this code or fails to comply with any of 94 the requirements thereof or who erects, constructs, places, alters, repairs, a building or 95 structure in violation of the approved construction documents or directive of the building 96 inspector, or of a permit or certificate issued under the provisions of this code, shall be 97 subject to penalties as prescribed by law." 98 Section 114.3 Unlawful continuance. Insert: "Any person who shall continue any work 99 after having been served with a stop work order, except such work as that person is 100 directed to perform to remove a violation or unsafe condition, shall be charged with a 101 violation of this section and shall be fined according to the following schedule: $100.00 102 for any first offense; $250.00 for any second offense; $500 for any third offense; and no 103 less than $1,000.00 and no more than $10,000.00 for any fourth and subsequent offense 104 as provided for in Appendix F. Repeat offenders shall not receive warnings and shall 4

105 instead be subject to progressively increasing fines according to the foregoing fore- 106 mentioned schedule in appendix F to this code. Each day that a violation continues shall 107 be deemed a separate offense." in place of: "Any person who shall continue any work 108 after having been served with a stop work order, except such work as that person is 109 directed to perform a violation or unsafe condition, shall be subject to penalties as 110 prescribed by law." 111 112 BE IT FURTHER ORDAINED THAT: 113 Chapter 22 - Building and Building Regulations, Article III - Building Code, be amended by 114 inserting the blue text and deleting the text in red strikeout, as follows: 115 Sec. 22-65 Permit Fees. 116 (a) Before any permit shall be issued for buildings, fences, signs, swimming pools, 117 demolitions, moving, or construction plan reviews a fee shall be paid unto the city as 118 provided for in Appendix F. Building permits. Each applicant for a building permit shall 119 pay unto the city a permit fee computed as follows before such permit shall be issued: 120 The sum of $25.00 for the first $1,000.00 of costs and $8.00 for each additional 121 $1,000.00 of costs or multiple thereof up to $10,000,000.00 of costs, $6.00 for each 122 additional $1,000.00 of costs or multiple thereof up to $20,000,000.00, and $5.00 for 123 each additional $1,000.00 of costs or multiple thereof above $20,000,000.00. 124 (b) Fence permits. Each applicant for a fence permit shall pay unto the city a permit fee 125 computed as follows before such permit is issued: The sum of $25.00 for the first 126 $1,000.00 of costs and $8.00 for each additional $1,000.00 of costs or multiple thereof. 127 (c) Sign permits. Each applicant for a sign permit shall pay unto the city, before such 128 permit is issued, the sum of $0.50 per square foot of sign area; provided, however, that 129 the minimum fee for each permit shall be $15.00. 5

130 (d) Swimming pool permits. Each applicant for a swimming pool permit shall pay unto 131 the city a permit fee computed as follows before such permit is issued: The sum of 132 $25.00 for the first $1,000.00 of cost and $8.00 for each additional $1,000.00 of cost or 133 multiple thereof. 134 (e) Demolition permits. Each applicant for a demolition permit shall pay unto the city, 135 before such permit is issued, the sum of $50.00 for any building which is being 136 demolished for the purpose of vacating the land for future development or construction 137 upon the same, provided that no fee shall be charged for buildings condemned and 138 required to be demolished by the city or any public entity. 139 (f) Moving permits. Each applicant for a moving permit shall pay unto the city, before 140 such permit is issued, the sum of $250.00 for each building. 141 (g) Construction plan reviews. Each applicant requesting review of nonresidential 142 construction plans shall pay the sum of $20.00 per set of plans. 143 (h) (b) Reinspections. There will be no charge for the first reinspection of a permit. The 144 applicant shall pay the sum of $25.00 for the second reinspection, $50.00 for the third 145 reinspection and $100.00 for any subsequent reinspection. For subsequent reinspections 146 the applicant shall pay unto the city a fee as provided for in Appendix F. 147 (i) (c) Doubling fees. Fees established in Appendix F this subsections (a)--(f) of this 148 section shall double in the event that a permit is applied for after construction has 149 commenced without the permission of the building inspector. The building inspector may 150 waive the doubling of fees in cases where the building permit applicant is not a 151 professional contractor, and the work is not being done by a professional contractor. 152 (Code 1981, § 5-21; Ord. of 6-28-1982, § 1; Ord. of 4-13-1987; Ord. of 11-22-1993; Ord. 153 of 4-25-1994; Ord. of 9-11-1995; Ord. of 6-28-2004(2)) 154 155 6

156 BE IT FURTHER ORDAINED THAT: 157 Chapter 22 - Building and Building Regulations, Article V – Mechanical Code, be amended by 158 inserting the blue text and deleting the text in red strikeout, as follows: 159 Sec. 22-145. Heating, air conditioning, and heat pump permit fees. 160 (a) Enumerated. Before any permit shall be issued for Each applicant for a heating, air 161 conditioning, or heat pump permit a fee shall be paid unto the city a permit fee, 162 computed as follows, before such permit is issued: as provided for in Appendix F. 163 (1) Heating permit. The sum of $30.00 for the first 10,000 BTUs and the sum 164 of $5.00 for each additional 10,000 BTUs or multiple thereof. 165 (2) Air conditioning permit. The sum of $30.00 per ton for the first five tons 166 and the sum of $5.00 per ton for over five tons or multiple thereof. 167 (3) Heat pump permit. The sum of $15.00 for the first 10,000 BTUs and the 168 sum of $2.50 for each additional 10,000 BTUs or multiple thereof and an 169 additional $15.00 for the first five tons and the sum of $2.50 per ton for over five 170 tons or multiple thereof. 171 (b) Doubling of fees. Fees established in this subsection (a)(1)--(3) of this section shall 172 double in the event that a permit is applied for after construction has commenced without 173 the permission of the building inspector. The building inspector may waive the doubling 174 of fees in cases where the building permit applicant is not a professional contractor, and 175 the work is not being done by a professional contractor. 176 (Code 1981, § 5-61; Ord. of 6-28-1982, § 3; Ord. of 4-13-1987; Ord. of 4-25-1994; Ord. of 6-28-2004(2)) 177 7

178 BE IT FURTHER ORDAINED THAT: 179 Chapter 22 - Building and Building Regulations, Article VI – Plumbing Code, be amended by 180 inserting the blue text and deleting the text in red strikeout, as follows: 181 Sec. 22-185. Permit Fees. 182 (a) Enumerated. Before any permit shall be issued Each applicant for a plumbing 183 permit a fee shall be paid pay unto the city as provided for in Appendix F. a permit fee, 184 computed as follows, before such permit is issued: 185 (1) Fixtures. The sum of $25.00 for the first five fixtures and the sum of $2.00 186 for each additional fixture. 187 (2) Garbage disposals and hot water heaters. A minimum fee of $25.00. 188 (3) Gas, water and sewer inspection underground. The sum of $20.00 for the 189 first 150 feet and $0.50 for each additional ten feet or multiple thereof. 190 (b) Doubling of fees. Fees established in this subsections (a)(1)--(3) of this section shall 191 double in the event that a permit is applied for after construction has commenced without 192 the permission of the building inspector. The building inspector may waive the doubling 193 of fees in cases where the building permit applicant is not a professional contractor, and 194 the work is not being done by a professional contractor. (Code 1981, § 5-75; Ord. of 6- 195 28-1982, § 2; Ord. of 4-13-1987; Ord. of 4-25-1994; Ord. of 6-28-2004(2)) 196 197 BE IT FURTHER ORDAINED THAT: 198 Chapter 22 - Building and Building Regulations, Article VIII – Leases, be amended by inserting 199 the blue text and deleting the text in red strikeout, as follows: 200 Sec. 22-251 Unlawful leases 201 (a) Compliance with zoning. No owner or landlord shall enter into any agreement, 202 contract, lease, or sublease which provides for, permits, allows, contemplates, or 203 facilitates occupancy of any structure contrary to the use requirements of the city zoning 8

204 ordinance as set forth in appendix B. Any agreement, contract, lease, or sublease which 205 provides for, permits, allows, contemplates, or facilitates such occupancy by more 206 persons than permitted in appendix B to this Code is unlawful and hereby declared to be 207 contrary to public policy. 208 (b) Noise; disorderly conduct; drugs. All agreements, contracts, leases, or subleases for 209 the occupancy of dwelling units shall prominently stipulate that any renter or occupier of 210 the rental unit shall not violate section 42-2 pertaining to noise or section 70-3 pertaining 211 to disorderly conduct in connection with the use of the premises and shall also 212 prominently stipulate that any renter or occupant of the rental unit shall not commit any 213 drug offense on the premises. The agreement, contract, lease, or sublease shall also 214 prominently stipulate that if any renter or occupant shall be convicted more than one time 215 in any one-year period of violating section 42-2 pertaining to noise or section 70-3 216 pertaining to disorderly conduct in connection with the use of the premises or is 217 convicted of any drug offense which occurred on the premises, the renter or occupier 218 shall be considered to have breached a lawful obligation relating to his use of the 219 premises and shall be grounds for termination of the agreement, contract, lease, or 220 sublease as it applies to that renter or occupant. 221 (c) Notice of conviction to landlord. The city shall notify the landlord, owner, or 222 owner's agent if a renter or occupant of the rental unit is convicted of violating section 223 42-2 pertaining to noise, section 70-3 pertaining to disorderly conduct or any drug law. 224 Notice shall be deemed to be properly served upon the owner or the owner's agent if a 225 copy thereof is delivered to the owner, or the owner's agent; or by leaving a notice at the 226 usual place of abode, in the presence of someone in the family of suitable age and 227 discretion, who shall be informed of the contents thereof, or by certified mail addressed 228 to the owner or the owner's agent at the last known address, with return receipt requested; 9

229 or lastly by posting a copy thereof in a conspicuous place in or about the structure 230 affected by the notice. 231 (d) Notice to renter. Within seven days of the receipt of notice that a renter or occupier 232 has been convicted of violating section 42-2 pertaining to noise or section 70-3 pertaining 233 to disorderly conduct, the landlord, owner, or owner's agent shall cause notice to be 234 served upon the affected renter or occupier that if a second such violation occurs within 235 one year, the rental agreement will be terminated. 236 (e) Second violation; termination of lease. Within seven days of the receipt of the 237 notice that a renter or occupier has been convicted of a second violation of section 42-2 238 pertaining to noise or section 70-3 pertaining to disorderly conduct, or has been convicted 239 of a drug offense, the landlord, owner, or owner's agent shall cause to be served upon the 240 affected renter or occupier, notice that the rental agreement is terminated and that the 241 renter or occupier has not more than seven days to vacate the unit. 242 (f) Failure of renter or landlord to comply. If the renter or occupier fails to vacate the 243 unit within the time specified in the notice, the landlord, owner, or owner's agent shall 244 immediately initiate and diligently pursue, in good faith, summary proceedings for 245 possession as specified in the Residential Landlord-Tenant Code (25 Del. C. § 5101 et 246 seq.). The failure of the landlord, owner, or owner's agent to initiate or diligently pursue, 247 in good faith, summary proceedings for possession shall constitute a violation of this 248 section and shall subject the landlord, owner, or owner's agent to the penalties provided 249 herein. 250 (g) Violations; penalties. Any person, firm, or corporation who violates any provision 251 of this section shall have his rental license for the premises revoked and shall be punished 252 by a fine of $50.00 for the first offense and $100.00 for each subsequent offense as 253 provided for in Appendix F. 254 (Code 1981, § 10-41; Ord. of 10-15-1991; Ord. of 8-23-2004) 10

255 BE IT FURTHER ORDAINED THAT: 256 Chapter 22 – Buildings and Building Regulations, Article IX – Lodging Houses, Division II – 257 Permit, be amended by inserting the blue text and deleting the text in red strikeout, as follows: 258 Sec. 22-301. Generally. 259 (a) Required. It shall be unlawful for any person to let, or offer to let, space in any 260 lodging house by advertisement, without first obtaining a permit from the licensing 261 division of the department of planning and inspections in order to determine compliance 262 with the provisions of this chapter. 263 (b) Expiration; fee. The permit shall expire annually on January 31, and the fee for the 264 annual permit shall be $50.00 for the first ten rooms and $5.00 for each additional room. 265 The fee for dormitories shall be $50.00 for the first ten rooms, and $2.50 for each room 266 thereafter. as provided for in Appendix F. 267 (c) Failure to pay on due date. In the event that the permit fee set forth herein is not 268 paid on the date due, then the permittee shall incur a penalty fee in the amount of ten 269 percent per month of the amount of the license fee until the same is paid. 270 (d) Reimbursement fee. An owner whose permit has been suspended in accordance with 271 section 22-303 shall pay a $100.00 reinstatement fee. a reimbursement fee as provided 272 for in Appendix F. 273 (e) Lien. In the event that the property owner fails to pay said fees within 30 days from 274 the date a notice thereof is mailed to the owner, then such fees may be entered into the 275 municipal lien docket as a lien owing the city, and the same may be turned over to the 276 city solicitor for collection. 277 (f) Utilities. The owner or occupant of any lodging house shall not be entitled to receive 278 city utilities until the permit fee required in this section is paid in full and city personnel 279 shall refuse to provide sewage, water and electricity to the property until satisfactory 280 proof is furnished that such permit fee has been paid. 11

281 (Code 1981, § 10-76; Ord. of 4-10-2000) 282 283 BE FURTHER ORDAINED THAT: 284 Chapter 22 - Building and Building Regulations, Article X - Rental Dwellings, Division 2 - 285 Permit, be amended by inserting the blue text and deleting the text in red strikeout, as follows: 286 Sec. 22-351. Generally. 287 (a) Single-family dwellings. It shall be unlawful for any person to operate any single- 288 family rental dwelling without obtaining a permit from the licensing division of the 289 department of planning and inspections in order to determine compliance with the 290 appropriate provisions of this article. The permit shall expire annually on January 31. The 291 fee for the annual permit shall be $90.00 for each single-family detached dwelling, and 292 $70.00 for each single-family attached dwelling. as provided for in Appendix F. 293 (b) Multiple-family dwellings. It shall be unlawful for any person to operate any 294 multiple dwelling without first obtaining an annual permit therefor from the licensing 295 division of the department of planning and inspections in order to determine compliance 296 with the appropriate provisions of this article. The permit shall expire annually on 297 January 31, and the fee for the annual permit shall be $90.00 for multiple dwellings 298 consisting of three or less dwelling units, $90.00 for the first three dwelling units of a 299 multiple dwelling with four or more dwelling units, and $30.00 for each additional 300 dwelling unit in excess of three. The fee for condominium units and accessory apartments 301 located within structures principally used for owner occupancy shall be $30.00. as 302 provided for in Appendix F. 303 (c) Late payment penalty. In the event that the permit fee set forth herein is not paid on 304 the date due, then the permittee shall incur a penalty fee in the amount of ten percent per 305 month of the amount of the license fee until the same is paid. 12

306 (d) Reinstatement fee. An owner whose permit has been suspended in accordance with 307 section 22-352 shall pay a $100.00 reinstatement fee. as provided for in Appendix F. 308 (e) Lien. In the event that the property owner fails to pay said fees within 30 days from 309 the date a notice thereof is mailed to the owner, then such fees shall be entered in the 310 municipal lien docket as a lien owing the city; and the same may be turned over to the 311 city solicitor for collection. 312 (f) Utilities. The owner or occupant of any rental unit shall not be entitled to receive 313 city utilities until the permit fee required in this section is paid in full and city personnel 314 shall refuse to provide sewage, water and electricity to the property until satisfactory 315 proof is furnished that such permit fee has been paid. 316 (Code 1981, § 10-96; Ord. of 4-10-2000) 317 318 BE IT FURTHER ORDAINED THAT: 319 Chapter 22 - Building and Building Regulations, Article XI - Dangerous Buildings, be amended 320 by inserting the blue text and deleting the text in red strikeout, as follows: 321 Sec. 22-386. Violations; penalty for disregarding notices or orders. 322 (a) Violations by owner. The owner of any dangerous building who shall fail to comply 323 with any notice or order to repair, vacate and close, or demolish said building given by 324 the council shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined 325 a minimum of $100.00 for each offense. as provided for in Appendix F. 326 (b) Violations by occupant or lessee. The occupant or lessee in possession who fails to 327 comply with any notice to vacate and close or who fails to repair said building in 328 accordance with any notice given by the council as provided for in this article shall be 329 guilty of a misdemeanor and, upon conviction thereof, shall be fined a minimum of 330 $100.00 for each offense. as provided for in Appendix F. 13

331 (c) Removal of notice. Any person removing the notice provided for in section 22- 332 384(9) shall be guilty of a misdemeanor and, upon conviction, shall be fined not 333 exceeding $100.00 for each offense as provided for in Appendix F. Fines not paid within 334 14 days of the day the fine was issued, including the day the fine was issued, shall be 335 automatically doubled in amount. 336 (Ord. of 2-28-1955, § 6; Code 1981, § 5-91; Ord. of 10-28-1996; Ord. of 9-22-2003) 337 338 BE IT FURTHER ORDAINED THAT: 339 Chapter 22 - Building and Building Regulations, Article XII – Vacant Buildings, be amended by 340 inserting the blue text and deleting the text in red strikeout, as follows: 341 Sec. 22-403. Registration and registration fee. 342 (a) Registration of building. There are two ways to register the building as vacant. 343 (1) The owner shall register with the city not later than 30 days after any 344 building in the city becomes vacant, as defined. 345 The registration of the vacant building shall include the site address, the name of 346 the current owner or owners, current address of the owner and of all applicable 347 owners, tax parcel number, proof of insurance on the building, description of the 348 condition of the building, plans for the building (to eliminate the vacancy), the 349 responsible person or agent and their contact information and any other 350 applicable information. If any information changes the owner is responsible for 351 informing the city of those changes in a timely manner. 352 (2) The building inspector or his designee shall investigate any property that 353 may be subject to registration. Based upon his findings, the building inspector 354 may register the property as a vacant building subject to this chapter. 355 a. Notice of registration. Within five business days of such registration, 356 the licensing and permitting office shall notify the owners of the 14

357 registered property by certified mail at their last known address 358 according to the records of the city and Kent County. 359 b. Registration fee. 360 (i) The annual registration fee shall be paid at the time of 361 registration. If the building inspector registers the building as 362 vacant the fee shall be due not later than 30 days after the 363 building is registered as vacant. The annual registration fee will 364 then be due by the 31st of March every year after that as long as 365 it remains vacant. The starting point for counting a building as 366 being vacant will begin on the date of the enactment of this 367 article [June 26, 2006]. 368 (ii) The registration fee will be prorated for a building when it 369 is first registered as vacant from the date it is registered until the 370 March 31 annual fee is due. 371 (iii) The annual fee is: as provided for in Appendix F. $250.00 372 for buildings vacant one year or less; $500.00 for buildings 373 vacant for more than one year but less than two years; $1,000.00 374 for buildings vacant for more than two years but less than five 375 years; and $2,000.00 for buildings vacant for five years or 376 longer. 377 (Ord. of 6-26-2006; Ord. of 4-14-2008) 378 379 BE IT FURTHER ORDAINED THAT: 380 Chapter 26 - Businesses, Article II – Licenses, be amended by inserting the blue text and deleting 381 the text in red strikeout, as follows: 382 Sec. 26-35. License required; fees. 15

383 a) Nonprofessional service businesses. Except where expressed by definition in section 384 26-31, nonprofessional service businesses shall pay an annual license fee for each store, 385 place of business or vehicle from which the licensee conducts the business operated 386 within the city. 387 (b) Professional services. Persons engaged in professional services, such as 388 accountants, certified or public, landscape architects, architects, optometrists, lawyers, 389 dentists, physicians and surgeons, psychologists, physical therapists, podiatrists, 390 professional engineers, and veterinarians shall pay an annual license fee for engaging in 391 such professional services within the city. 392 (c) Corporate employees. No license shall be required of any individual practicing a 393 profession or trade who is in the employ of any corporation licensed under any other 394 provision of this article and who does not practice his profession, except in his capacity 395 as an employee of such corporation and, provided further, that no attorney in the employ 396 of any such corporation shall be required to obtain a license under this section so as to 397 fulfill assignments made to him by any state court. 398 (d) Businesses licensed. 399 (1) No person shall conduct or engage in any of the following trades, 400 businesses, or occupations within the city without a license and paying the 401 appropriate fee as follows: as provided for in Appendix F. 402 Advertising agency . . . $ 92.00 403 Amusement operator . . . 152.00 404 Architect . . . 242.00 405 Attorney-at-law . . . 303.00 406 Auctioneer . . . 152.00 407 Automobile race operator . . . 363.00 408 Bank, or loan and trust company . . . 303.00 16

409 Barber . . . 61.00 410 Each additional chair over two . . . 4.00 411 Beautician . . . 61.00 412 Each additional chair over two . . . 4.00 413 Bowling alley operator . . . 182.00 414 Broadcasting station . . . 303.00 415 Broker . . . 152.00 416 Car wash . . . 182.00 417 Certified public accountant . . . 242.00 418 Cesspool cleaner . . . 121.00 419 Chiropractor . . . 303.00 420 Clinical social worker . . . 93.00 421 Coin-operated amusement machine owner, per machine . . . 3.00 422 Coin-operated vending machine owner, per machine . . . 3.00 423 Coin-operated electronic video machine, per machine . . . 121.00 424 Commercial sign business . . . 121.00 425 Computer related services . . . 121.00 426 Consultant . . . 49.00 427 Day care operator: 428 Home based provider with six or fewer children . . . 0.00 429 Center or home provider with greater than six children . . . 49.00 430 Dental lab . . . 182.00 431 Dentist . . . 303.00 432 Distributor . . . 61.00 433 Drayperson or mover . . . 121.00 434 Eating establishment and/or eating establishment operator . . . 121.00 17

435 Employment agent . . . 121.00 436 Entertainer: 437 One--three entertainers per group . . . 49.00 438 Four--nine entertainers per group . . . 92.00 439 Ten or more . . . 121.00 440 Entertainment agent . . . 182.00 441 Finance or small loan agency . . . 242.00 442 Funeral director . . . 242.00 443 Gas, light, power, cable TV and telephone company . . . 908.00 444 General repairman . . . 61.00 445 Health spa or health club . . . 182.00 446 Hotel: 447 Per room . . . 9.00 448 Per suite . . . 12.00 449 Income tax consultant . . . 182.00 450 Incorporator . . . 121.00 451 Insurance adjustor office . . . 121.00 452 Itinerant merchant, per event . . . 40.00 453 Janitorial and cleaning service: 454 One--three employees . . . 49.00 455 Four--nine employees . . . 92.00 456 Ten or more employees . . . 121.00 457 Landscape service company: 458 One--three employees . . . 49.00 459 Four--nine employees . . . 92.00 460 Ten or more employees . . . 121.00 18

461 Laundry service operator: 462 Primary facility . . . 121.00 463 Additional drop-off locations . . . 49.00 464 Linen supplier . . . 121.00 465 Manicurist . . . 31.00 466 Manufacturer's agent or representative . . . 121.00 467 Mercantile agency or collection agency . . . 121.00 468 Mobile home park, per space . . . 7.00 469 Motel, per room . . . 7.00 470 Motion picture theater . . . 182.00 471 Motor vehicle serviceman . . . 92.00 472 Nursing, rest or convalescent home . . . 182.00 473 Open market operator: 474 First 20 spaces, per rented space . . . 22.00 475 21st--50th space, per rented space . . . 11.00 476 Each space over 50, per rented space . . . 6.00 477 Outdoor tables, per table . . . 6.00 478 Optometrist . . . 303.00 479 Outdoor music festival promoter . . . 1,210.00 480 Parking lot or garage operator . . . 61.00 481 Pawnbroker . . . 182.00 482 Pest control services . . . 92.00 483 Pharmacist . . . 182.00 484 Photographer . . . 121.00 485 Physical therapist . . . 182.00 486 Physician and/or surgeon . . . 303.00 19

487 Plant nursery and florist . . . 92.00 488 Podiatrist . . . 303.00 489 Pool table operator, per table . . . 61.00 490 Maximum fee . . . 183.00 491 Printer . . . 121.00 492 Private investigator agency . . . 182.00 493 Professional counselor . . . 61.00 494 Professional engineer . . . 242.00 495 Professional land surveyor . . . 242.00 496 Psychologist . . . 303.00 497 Public accountant . . . 182.00 498 Public stenographer . . . 37.00 499 Publisher . . . 303.00 500 Real estate broker, appraiser, and manager . . . 152.00 501 Real estate property manager: 502 One--three units managed . . . 49.00 503 Four--ten units managed . . . 121.00 504 Ten+ units managed . . . 121.00 505 Real estate salesperson or associated broker . . . 49.00 506 Rental service . . . 121.00 507 Sales representative . . . 49.00 508 School and educational service (nonvocational) . . . 61.00 509 School and educational service (vocational) . . . 121.00 510 Scientific laboratory . . . 242.00 511 Scrap and waste material service . . . 121.00 512 Secondhand dealer of precious metals . . . 121.00 20

513 Security service . . . 182.00 514 Self-service laundry or dry cleaner . . . 121.00 515 Shoe repairman . . . 49.00 516 Sound truck, per hour . . . 31.00 517 Tailor and garment service . . . 49.00 518 Taxicab or bus operator: 519 First vehicle . . . 25.00 520 Each additional vehicle . . . 25.00 521 Taxidermist . . . 121.00 522 Telephone answering service . . . 121.00 523 Television repairman . . . 92.00 524 Tourist home, per room . . . 7.00 525 Trailer park, per space . . . 7.00 526 Travel agency . . . 121.00 527 Veterinarian . . . 303.00 528 Warehouseman . . . 242.00 529 Wholesale news agency . . . 61.00 530 All other businesses not listed: 531 One--three employees . . . 49.00 532 Four--nine employees . . . 92.00 533 Ten--50 employees . . . 121.00 534 51--100 employees . . . 303.00 535 (2) Manufacturers and contractors shall pay a license fee as provided for in 536 Appendix F. at the rate of $0.00046 of the aggregate gross receipts; provided, 537 however, that the minimum license shall be $121.00. 21

538 (3) Merchants and bottlers shall pay a license fee as provided for in Appendix F. 539 at the rate of $0.00046 of the aggregate gross purchases for resale; provided, 540 however, that the minimum license fee shall be $61.00. 541 (Code 1968, §§ 18-34, 18-35; Ord. of 3-12-1972, § 1; Ord. of 4-28-1980; Code 1981, § 11-4; Ord. of 2-8- 542 1982; Ord. of 8-23-1982; Ord. of 4-14-1986; Ord. of 1-22-1993; Ord. of 5-23-1994; Ord. of 2-23-1998; 543 Ord. of 12-11-2000; Ord. of 6-28-2004(1)) 544 BE IT FURTHER ORDAINED THAT: 545 Chapter 26 - Businesses, Article III – Going-Out-Of-Business Sales; Fire Sales, be amended by 546 inserting the blue text and deleting the text in red strikeout, as follows: 547 Sec. 26-137. Fees. 548 Any applicant for a license hereunder shall submit a $25.00 license fee as provided for in 549 Appendix F, to the license officer with his application. Any applicant for a renewal license 550 hereunder shall submit a renewal license fee of $25.00 as provided for in Appendix F, to the 551 license officer with his renewal application. 552 (Code 1968, § 3B-4(B); Ord. of 4-28-1980; Code 1981, § 8.5-22) 553 554 BE IT FURTHER ORDAINED THAT: 555 Chapter 30 – Code of Conduct and Ethics Commission, Article II – Code of Conduct, be 556 amended by inserting the blue text and deleting the text in red strikeout, as follows: 557 Sec. 30-33. Prohibitions relating to conflicts of interest. 558 (a) Restrictions on exercise of official authority. 559 (1) Prohibited participation. No city employee or official may participate on 560 behalf of the city in the review or disposition of any matter pending before the 561 city in which he has a personal or private interest, provided that, upon request 562 from any person with official responsibility with respect to the matter, any such 563 person who has such a personal or private interest may nevertheless respond to 22

564 questions concerning any such matter. A personal or private interest in a matter is 565 an interest which tends to impair a person's independence of judgment in the 566 performance of his duties with respect to that matter. 567 (2) Impairment of judgment. A person has an interest which tends to impair his 568 independence of judgment in the performance of his duties with respect to any 569 matter when: 570 a. Any action or inaction with respect to the matter would result in a 571 financial benefit or detriment to accrue to the person or a close relative to 572 a greater extent than such benefit or detriment would accrue to others 573 who are members of the same class or group of persons; or 574 b. The person or a close relative has a financial interest in a private 575 enterprise which enterprise or interest would be affected by any action or 576 inaction on a matter to a lesser or greater extent than like enterprises or 577 other interests in the same enterprise. 578 (3) Statutory responsibility. In any case where a person has a statutory 579 responsibility with respect to action or inaction on any matter where he has a 580 personal or private interest and there is no provision for the delegation of such 581 responsibility to another person, the person may exercise responsibility with 582 respect to such matter, provided that, promptly after becoming aware of such 583 conflict of interest, he files a written statement with the ethics commission, fully 584 disclosing the personal or private interest and explaining why it is not possible to 585 delegate responsibility for the matter to another person. 586 (b) Restrictions on representing another's interest before the city. 587 (1) Prohibited. No city employee or official may represent or otherwise assist 588 any private enterprise with respect to any matter before the city. 23

589 (2) Exception. This subsection (b) shall not preclude any city employee or 590 official from appearing before the city or otherwise assisting any private 591 enterprise with respect to any matter in the exercise of his official duties. 592 (c) Restriction on contracting with the city. 593 (1) Prohibited. No city employee or official shall benefit from any contract 594 with the city, nor solicit any contract, and shall not enter into any contract with 595 the city (other than an employment contract). 596 (2) Ownership of enterprise. No private enterprise in which a city employee or 597 official has a legal or equitable ownership of more than ten percent (more than 598 one percent in the case of a corporation the stock of which is regularly traded on 599 an established securities market) shall enter into any contract with the city (other 600 than an employment contract) unless such contract was made or let after public 601 notice and competitive bidding. 602 (d) Postemployment restrictions. No person who has served as a city employee or 603 official shall represent or otherwise assist any private enterprise on any matter involving 604 the city, for a period of two years after termination of his employment or elected or 605 appointed status with the city, if he gave an opinion, conducted an investigation or 606 otherwise was directly and materially responsible for such matter in the course of his 607 official duties as a city employee or official, nor shall any former city employee or 608 official disclose confidential information gained by reason of his public position, nor 609 shall he otherwise use such information for personal gain or benefit. 610 (e) Unauthorized disclosure of confidential information. No person shall disclose any 611 information required to be maintained confidential by the ethics commission under 612 section 30-34(d), 30-35(b) or 30-73. 613 (f) Abuse of office. 24

614 (1) Political contributions. No elected city official shall agree to sponsor 615 legislation, or to influence in any manner the formulation or passage of 616 legislation, in exchange for political contributions or promises thereof. 617 (2) Substantial interest. No elected city official shall vote for, or promote in 618 any manner whatsoever, legislation affecting any subject matter in which he has 619 a substantial interest. Any such interest shall be disclosed by said elected official 620 prior to a vote on any such legislation, and said elected official shall vote 621 "abstain" when called upon to vote. 622 (3) Use of city property. No city official or employee shall request or permit the 623 use of city-owned vehicles, equipment, materials, or property for personal 624 convenience or profit, except when such services are available to the public 625 generally or are provided for the use of such official or employee in the conduct 626 of official business as a matter of municipal policy. 627 (4) Personal gain. No city official or employee shall utilize the influence of his 628 office or position for personal pecuniary gain, or to avoid the legal consequences 629 of his personal conduct. 630 (g) Criminal sanctions. 631 (1) Penalties. Any person who knowingly or willfully violates any provision of 632 this section shall be guilty of a misdemeanor, punishable for each such violation 633 by imprisonment of not more than one year and by a fine not to exceed $1,000.00 634 as provided for in Appendix F. 635 (2) Time limitations. A prosecution for a violation of this section shall be 636 subject to the time limitations of 11 Del. C. § 205. 637 (h) Contracts voidable by court action. In addition to any other penalty provided by 638 law, any contract entered into by any city agency in violation of this chapter shall be 639 voidable by the city agency; provided that in determining whether any court action 25

640 should be taken to void such a contract pursuant to this subsection, the city agency shall 641 consider the interests of innocent third parties who may be damaged thereby. Any court 642 action to void any transaction must be initiated within 30 days after the city agency 643 involved has, or should have, knowledge of such violation. 644 (Code 1981, § 2-10; Ord. of 7-13-1998) 645 646 BE IT FURTHER ORDAINED THAT: 647 Chapter 42 – Environment, be amended by inserting the blue text and deleting the text in red 648 strikeout, as follows: 649 Sec. 40-2. Noise. 650 (a) Generally. It shall be unlawful for any person to make or continue, or cause to be 651 made or continued, any excessive, unreasonable or unusually loud noise or any noise 652 which either annoys, disturbs, injures or endangers the comfort, repose, health, peace or 653 safety of others, or creates the risk thereof, within the limits of the city. 654 (b) Prohibited acts. The following acts, among others, are declared to be loud, 655 disturbing and unreasonable noises in violation of this section, but said enumeration shall 656 not be deemed to be exclusive: 657 (1) Horns, signaling devices, etc. The sounding of any horn or signaling device 658 on any automobile, motorcycle, street car or other vehicle on any street or public 659 place of the city, except as a danger warning; the creation by means of any such 660 signaling device of any unreasonably loud or harsh sound; the sounding of any 661 such device for an unreasonable period of time; the use of any signaling device, 662 except one operated by hand or electricity; the use of any horn, whistle or other 663 device operated by engine exhaust; and the use of any such signaling device 664 when traffic is for any reason held up. 26

665 (2) Radios, phonographs, etc. The playing, using or operating of, or permitting 666 to be played, used or operated, any radio receiving set, musical instrument, 667 phonograph, or other machine or device for the producing or reproducing of 668 sound in such a manner as to disturb the peace, quiet and comfort of the 669 neighboring inhabitants or at any time with louder volume than is necessary for 670 convenient hearing for the person or persons who are in the room, vehicle or 671 chamber in which such machine or device is operated and who are voluntary 672 listeners thereto. The operation of any such set, instrument, phonograph, machine 673 or device in such a manner as to be plainly audible at a distance of 50 feet from 674 the building, structure or vehicle in which it is located shall be prima facie 675 evidence of a violation of this subsection. 676 (3) Loudspeakers, amplifiers for advertising. The playing, using or operating 677 of, or permitting to be played, used, or operated, any radio receiving set, musical 678 instrument, phonograph, loudspeaker, sound amplifier, or other machine or 679 device for the producing or reproducing of sound which is cast upon the public 680 streets for the purpose of commercial advertising or attracting the attention of the 681 public to any building or structure unless authorized by a permit. 682 (4) Yelling, shouting, etc. Yelling, shouting, hooting, whistling, or singing on 683 the public streets, particularly between the hours of 11:00 p.m. and 7:00 a.m., or 684 at any time or place so as to annoy or disturb the quiet, comfort, or repose of 685 persons in any office, or in any dwelling, hotel or other type of residence, or of 686 any person in the vicinity. 687 (5) Animals or fowl. The keeping of any animal or bird which, by causing 688 frequent or long continued noise, shall disturb the comfort or repose of any 689 person in the vicinity. 27

690 (6) Whistles. The blowing of any locomotive whistle or steam whistle attached 691 to any stationary boiler, except to give notice of time to begin or stop work or as 692 a warning of fire or danger, or upon request of proper city authorities or in 693 compliance with state law. 694 (7) Exhausts. The discharge into the open air of the exhaust of any steam 695 engine, stationary internal combustion engine, motorboat, or motor vehicle, 696 except through a muffler or other device which will effectively prevent loud or 697 explosive noises therefrom. 698 (8) Defect in vehicle or load. The use of any automobile, motorcycle, or vehicle 699 so out of repair, so loaded or in such a manner as to create loud and unreasonable 700 grating, grinding, rattling or other noise. 701 (9) Loading, unloading, opening boxes, etc. The creation of a loud and 702 excessive noise in connection with loading or unloading any vehicle or the 703 opening and destruction of bales, boxes, crates and containers. 704 (10) Construction, repair, etc., of buildings. The erection (including 705 excavation), demolition, alteration or repair of any building, other than between 706 the hours of 7:00 a.m. and 6:00 p.m. on weekdays and 10:00 a.m. and 6:00 p.m. 707 weekends, except in case of urgent necessity in the interest of public health and 708 safety, and then only with a permit from the building inspector, which permit 709 may be granted for a period not to exceed three days or less while the emergency 710 continues and which permit may be renewed for periods of three days or less 711 while the emergency continues. If the building inspector should determine that 712 the public health and safety will not be impaired by the erection, demolition, 713 alteration, or repair of any building or the excavation of streets and highways 714 within the hours of 6:00 p.m. and 7:00 a.m. weekdays and 6:00 p.m. and 10:00 715 a.m. weekends, and if he shall further determine that loss or inconvenience would 28

716 result to any part in interest, he may grant permission for such work to be done 717 within the hours of 6:00 p.m. and 7:00 a.m. weekdays and 6:00 p.m. and 10:00 718 a.m. weekends, upon application being made at the time the permit for the work 719 is awarded or during the progress of the work. 720 (11) Schools, courts, churches, hospitals. The creation of any excessive noise 721 on any street adjacent to any school, institution of learning, church or court while 722 the same are in use, or adjacent to any hospital, which unreasonably interferes 723 with the workings of such institution, or which disturbs or unduly annoys patients 724 in the hospital, provided conspicuous signs are displayed in such street indicating 725 that the same is a school, hospital or court street. 726 (12) Hawkers, peddlers, etc. The shouting and crying of peddlers, hawkers and 727 vendors which disturbs the peace and quiet of the neighborhood. 728 (13) Drums. The use of any drum or other instrument or device for the purpose 729 of attracting attention, by the creation of noise, to any public concert, parade, 730 performance, show or sale, unless authorized by a permit. 731 (14) Transportation of metal rails, pillars and columns, iron, steel or other 732 material. The transportation of rails, pillars or columns, or iron, steel or other 733 material, over and along streets and other public places, upon carts, trays, cars, 734 trucks, or in any other manner so loaded as to cause loud noises or so as to 735 disturb the peace and quiet of such streets or other public places. 736 (15) Pile drivers, hammers, etc. Except under emergency situations, the 737 operation, between the hours of 10:00 p.m. and 7:00 a.m., of any pile driver, 738 steam shovel, pneumatic hammer, derrick, steam or electric hoist, or other 739 appliance, the use of which is attended by loud or unusual noise. 740 (16) Devices requiring muffler. The operation of any noise-creating blower or 741 power fan, or any internal combustion engine, the operation of which causes 29

742 noise due to the explosion of operating gases or fluids, unless the noise from such 743 blower or fan is muffled and such engine is equipped with a muffler device 744 sufficient to deaden such noise. 745 (17) Engine compression brakes. No person shall operate an engine 746 compression brake within the city limits, with the exception of emergency 747 vehicles where the use of said compression brake is necessary for the protection 748 of persons or property. An engine compression brake refers to any motor vehicle 749 brake that is operated by the compression of the engine of the motor vehicle or 750 any unit or part thereof. 751 (c) Notice. Owners, landlords, lessees, or renters of public or private premises where 752 there is a failure to maintain compliance with this section shall be notified of violations 753 and complaints and shall take appropriate and recommended actions necessary to assist in 754 bringing the premises in compliance with this section. 755 d) Violations; penalties. The violation of any provision of this section shall be 756 punishable by a fine of not less than $50.00, nor more than $100.00 as provided for in 757 Appendix F. Fines not paid within 14 days of the day the fine was issued, including the 758 day the fine was issued, shall be automatically doubled in amount. 759 (Code 1968, § 20-12; Ord. No. 3-77, § 2, 9-26-1977; Code 1981, § 14-8; Ord. of 9-13-1993; Ord. of 2-26- 760 1996; Ord. of 10-25-1999; Ord. of 11-26-2001; Ord. of 9-22-2003; Ord. of 7-12-2004(1); Ord. of 7-26- 761 2004) 762 763 BE IT FURTHER ORDAINED THAT: 764 Chapter 46 – Fire Prevention and Protection, Article I - In General, be amended by inserting the 765 blue text and deleting the text in red strikeout, as follows: 766 Sec. 46-3. Impairment of Fire Protection Equipment. 30

767 (a) Prohibited. It shall be a violation of this chapter for any owner, renter, lessor, or 768 contractor, after having been notified, in writing, by the fire marshal or code enforcement 769 officer of any impairment to fire protection equipment, including but not limited to fire 770 hydrants, fire alarm systems, sprinkler systems, commercial cooking ventilation and fire 771 suppression systems, standpipes, and smoke removal or pressurization systems, to allow it 772 to remain impaired for any time beyond that allowed by the fire marshal for repair. For the 773 purposes of this section, the term "impairment" means any effective lessening of the 774 equipment to operate as designed, including times of maintenance and annual testing. 775 (b) Notification required. The owner, tenant, or contractor shall notify the Robbins 776 Hose Company of the city of any impaired fire protection equipment, and shall renotify 777 the Robbins Hose Company when the fire protection equipment has been restored to 778 normal service. Certification from the repairing contractor shall be required to verify that 779 the system has been fixed and is functioning as designed. 780 (c) Fire watch required. When any impairment would cause a sprinkler system not to 781 operate or a fire alarm system not to detect and signal a fire, and if the building is to 782 remain occupied, a fire watch shall be established in that building or that portion of a 783 building affected. It shall be the responsibility of the owner or tenant to set up the fire 784 watch. The fire watch shall consist of an hourly check of the building or portion of the 785 building affected, and a log kept, there stating the date, time of the checks, and who was 786 making the checks. This log shall be accessible for immediate inspection by the fire chief, 787 fire marshal, or code enforcement officer. 788 (d) Fines. Any owner, occupant, contractor or body corporate found to be in violation 789 of this section shall be issued a summons for $50.00 for the first offense and $100.00 for 790 the second and subsequent offenses as provided for in Appendix F. 791 (Code 1981, § 7-3; Ord. of 2-9-1998) 792 31

793 BE IT FURTHER ORDAINED THAT: 794 Chapter 46 – Fire Prevention and Protection, Article III – Fire Codes, be amended by inserting 795 the blue text and deleting the text in red strikeout, as follows: 796 Sec. 46-126. Fire Prevention Permit. 797 (a) Required. It shall be unlawful to construct, enlarge, alter or demolish a fire 798 protection system without obtaining a fire prevention permit. 799 (b) Fee. Each applicant for a fire prevention permit, including but not limited to 800 sprinkler systems, fire alarms, hood suppression units, and tank installation, shall pay 801 unto the city a permit fee computed as follows : as provided for in Appendix F, before 802 such permit shall be issued. : The sum of $12.00 for each $1,000.00 of costs or multiple 803 thereof of the fire protection system; provided that a minimum fee for each permit shall 804 be $50.00. 805 (c) Reinspections. There will be no charge for the first reinspection of a permit. The 806 applicant shall pay a fee for subsequent reinspections as provided for in Appendix F. the 807 sum of $25.00 for the second reinspection, $50.00 for the third reinspection, and $100.00 808 for any subsequent reinspection. 809 (d) Doubling of fees. Fees established in subsection (b) of this section shall be doubled 810 in the event that a permit is applied for after construction has commenced without the 811 permission of the fire marshal. The fire marshal shall waive the doubling of fees in cases 812 where the permit applicant is not a professional contractor and the work is not being done 813 by a professional contractor. 814 (Code 1981, § 7-61; Ord. of 11-22-1993; Ord. of 9-11-1995; Ord. of 6-28-2004(2)) 815 816 BE IT FURTHER ORDAINED THAT: 817 Chapter 46 – Fire Prevention and Protection, Article III – Fire Codes, be amended by inserting 818 the blue text and deleting the text in red strikeout, as follows: 32

819 Sec. 46-127 Smoke Detection Devices. 820 a) Installation required. 821 (1) New dwellings. All new structures and new dwellings shall be equipped 822 with smoke detectors and fire protection equipment as required by the provisions 823 of the International Building Code. 824 (2) Existing dwellings. All existing single-family dwellings, multifamily 825 dwellings, and dwelling units, whether such dwellings are owner-occupied or 826 tenant-occupied, shall be equipped with automatic smoke detection devices, 827 which shall be approved smoke detectors of the photoelectric or ionization type 828 or battery powered Underwriters' Laboratories, Inc., or Factory Mutual approved 829 type, as required by subsection (b)(1) of this section. Such smoke detectors shall 830 be installed in the number, location and manner required by this section and the 831 rules and regulations of the fire marshal and, when actuated, each such smoke 832 detector shall provide an alarm suitable to warn the occupants within the 833 dwelling. It shall be the responsibility of the seller or lessor of such existing 834 dwellings to make such installations. 835 (3) Unlawful acts. In addition to and not in lieu of any other provisions of this 836 section and this Code, it shall be unlawful for any person responsible for the 837 installation of a smoke detector to fail to so install it. It shall be unlawful for any 838 person to tamper with, damage, or render inoperative, such as, but not 839 exclusively, by disconnecting electrical wiring or by removing the batteries, from 840 any smoke detector. 841 (b) Types. 842 (1) Generally. Smoke detection devices shall be of the photoelectric or 843 ionization type and shall be electric, 110-volt AC, or battery powered smoke 844 detectors, Underwriters' Laboratories, Inc., or Factory Mutual approved. 33

845 (2) Electric. Electric units shall be direct wired on a separate circuit on the line 846 side of service equipment, and immediately fused with the proper size fuse. 847 Detector wiring shall be a minimum of 14-gauge wire. All wiring shall comply 848 with the National Electrical Code and shall be performed by registered, licensed 849 electricians or inspected by the appropriate authority. 850 (3) Battery powered. Battery powered units shall be permitted only in existing 851 structures. Where battery powered units are permitted, the battery shall be of the 852 type approved for the detector and shall provide a minimum of 12 months' 853 service. Battery powered units shall be equipped with an audible sounding device 854 to alert occupants of the need for battery replacements. In rental dwelling units 855 where battery powered devices are permitted, after installation of the detection 856 devices at the landlord's expense, in accordance with subsection (a) of this 857 section, it shall be the tenant's responsibility, unless otherwise provided in the 858 tenant's lease agreements, to: 859 a. Make periodic inspections of the unit to determine that it is in proper 860 working order; 861 b. Notify the landlord of any malfunction of said detection device, 862 which the landlord shall then repair or replace at his own expense; 863 c. Replace the batteries, when necessary, during the entire term of the 864 rental agreement. 865 (c) Audible signal. Smoke detection devices shall be equipped with an audible sounding 866 device that provides a steady signal with a minimum decibel rating of 85 decibels. 867 (d) Number required. 868 (1) Generally. The major threat from fire in a family living unit is at night 869 when everyone is asleep. The principal threat to persons in sleeping areas comes 870 from fires in the remainder of the unit; therefore, smoke detectors shall be located 34

871 between the bedroom areas and the rest of the unit. In units with only one 872 bedroom area on one floor, the smoke detector shall be located as shown in 873 figure B-2.1.1 of the appendix of the NFPA 74-1984 Standard for the 874 Installation, Maintenance, and Use of Household Fire Warning Equipment. 875 (2) Multiple detectors. In family living units with more than one bedroom area 876 or with bedrooms on more than one floor, more than one smoke detector will be 877 required as shown in figure B-2.1.2 of the appendix of the NFPA 74-1984 878 Standard For the Installation, Maintenance, and Use of Household Fire Warning 879 Equipment. 880 (3) Each story of living unit. In addition to smoke detectors outside of the 881 sleeping areas, this subsection requires the installation of a smoke detector on 882 each additional story of the family living unit, including the basement. These 883 installations are shown in figure B-2.1.3 of the appendix of the NFPA 74-1984 884 Standard for the Installation, Maintenance, and Use of Household Fire Warning 885 Equipment. The living area smoke detector shall be installed in the living room 886 and/or near the stairway to the upper level. The basement smoke detector shall be 887 installed in close proximity to the stairway leading to the floor above. If installed 888 on an open-joist ceiling, the detector shall be positioned relative to the stairway 889 so as to intercept smoke coming from a fire in the basement before the smoke 890 enters the stairway. 891 (e) Jurisdictional authority. The fire marshal shall have jurisdiction for purposes of 892 enforcing compliance with this section. 893 (f) Supervision of enforcement. 894 (1) Registration of contractors. All general contractors, subcontractors and 895 their agents who install electric 110-volt, AC-powered smoke detection devices 35

896 shall be registered with the office of the city fire marshal in order to sell, 897 distribute, furnish or install smoke detection equipment within the city. 898 (2) Certification of device. It shall be the responsibility of the contractor, 899 installer or seller of an electric 110-volt, AC-powered smoke detector to certify, 900 in writing, to the fire marshal that the device is in compliance with this section. 901 (3) Exception. This subsection (f) shall not apply to persons who perform the 902 actual installation of smoke detectors in dwelling units they own; however, such 903 installations shall still require any applicable inspections required by the building 904 code. 905 (g) Violations; penalties. Any violation of the provisions of this section shall render the 906 owner or operator, or agent of the owner or operator of the building, or the tenant of 907 rental property if the rental agreement so provides in accordance with subsection (b) of 908 this section, and/or the general contractor, subcontractors, or their agents, liable for 909 suspension or revocation of any existing license to do business in the city, or a fine of not 910 more than $100.00 per violation as provided for in Appendix F, or both such penalties. 911 Copies of this section shall be made available to the public by the building inspector. 912 Fines not paid within 14 days of the day the fine was issued, including the day the fine 913 was issued, shall be automatically doubled in amount. 914 (h) Secured key systems. 915 (1) When required; exemption. A secured key system shall be required for any 916 new or existing building where a fire alarm or sprinkler system is being installed. 917 It shall be the responsibility of the owner or occupant to keep a set of keys in the 918 secured key box that are current to the locks of the protected occupancy. 919 Buildings with 24-hour staffing or guard service shall be exempt from this 920 subsection. 36

921 (2) Location. The secured key system shall be located as close to the main 922 entrance as possible. Should the building design not allow the secured key 923 system to be located by the main entrance, the fire marshal and fire chief shall 924 come to an agreement as to an alternate location for the key box. A secured key 925 system, once installed, shall not be obstructed from view or obstructed by any 926 means that would delay the fire department access to the box. 927 (3) Required keys. Keys to be secured in the key box shall include keys to all 928 points of ingress or egress, whether on the interior or exterior of the building, and 929 keys to locked mechanical rooms, electrical rooms, elevator rooms, fire alarm 930 and sprinkler controls and any area protected by automatic fire detection. Keys to 931 individual residential apartment units are not required. 932 (4) Ordering responsibility. It shall be the responsibility of the general 933 contractor to order the key box for new buildings. It shall be the responsibility of 934 the owner or tenant to order the key box for existing buildings. 935 (5) Installation before testing. No acceptance test for sprinklers or fire alarms 936 shall be conducted before the installation of a key box. 937 (Code 1981, § 7-62; Ord. of 2-13-1989; Ord. of 11-22-1993; Ord. of 2-9-1998; Ord. of 9-22-2003) 938 939 BE IT FURTHER ORDAINED THAT: 940 Chapter 46 - Fire Prevention and Protection, Article IV - Public Occupancies, be amended by 941 inserting the blue text and deleting the text in red strikeout, as follows: 942 Sec. 46-163 Permit required. 943 It shall be unlawful for any person to operate any public occupancy in section 46- 944 164 without first obtaining a permit from the licensing division of the department 945 of planning and inspections in order to determine compliance with the provisions 37

946 of this article. A person desiring the permit shall pay unto the city a fee as 947 provided for in Appendix F. 948 949 BE IT FURTHER ORDAINED THAT: 950 Chapter 46 - Fire Prevention and Protection, Article IV - Public Occupancies, be amended by 951 inserting the blue text and deleting the text in red strikeout, as follows: 952 Sec. 46-164 Fees. 953 A person desiring the permit required by the provisions of this article shall pay 954 the following appropriate permit fee as provided for in Appendix F: 955 (1) Churches, $25.00; 956 (2) Civic auditoriums, $25.00; 957 (3) Clubhouses, $50.00; 958 (4) Commercial auditoriums, $25.00 for the first 200 seats and $2.50 for each 959 additional 50 seats; 960 (5) Day care facilities, $25.00; 961 (6) Hospitals, nursing homes or rest homes, $5.00 for the first ten rooms and 962 $1.25 for each additional room; 963 (7) Mercantile (10,000 square feet of area or greater), $25.00; 964 (8) Outdoor public events, including but not limited to firework displays, 965 carnivals, and outdoor music concerts, $25.00; 966 (9) Public office buildings, $25.00; 967 (10) Schools, $25.00; 968 (11) Theaters, $25.00 for the first 200 seats and $2.50 for each additional 50 969 seats. 970 (Code 1968, §§ 17-38, 17-46, 17-50, 17-54, 17-58; Code 1981, § 7-65; Ord. of 3-23-1992; Ord. of 11-22- 971 1993) 38

972 BE IT FURTHER ORDAINED THAT: 973 Chapter 46 – Fire Prevention and Protection, Article IV – Public Occupancies, be amended by 974 inserting the blue text and deleting the text in red strikeout, as follows: 975 Sec. 46-168 Reinspecton Fee 976 a) Amount. There is hereby created a reinspection fee of $25.00 that shall be charged 977 for any repeated violation cited by the fire marshal, determined to be a violation and 978 which requires a follow up inspection to confirm the correction of the violation. The 979 reinspection fee will be as provided for in Appendix F. 980 (b) Sending of bill. Reinspections for the above referenced violations shall cause the 981 fire marshal to direct a bill to be sent to the operator having had such violations. 982 (c) Failure to pay. Failure to pay the reinspection fee within ten days from the receipt 983 of such bill may permit the city's fire marshal to suspend, without warning, notice or 984 hearing, any permit to operate a public occupancy for noncompliance with the 985 requirement of this section. 986 (Code 1981, § 7-69; Ord. of 11-22-1993) 987 988 BE IT FURTHER ORDAINED THAT: 989 Chapter 50 - Floods, Article II - Flood Damage Prevention, be amended by inserting the blue text 990 and deleting the text in red strikeout, as follows: 991 Sec. 50-50. Violation and non-compliance; penalties 992 Any person who fails to comply with any or all of the requirements or provisions of this 993 article, or direction of the department of planning and inspections or any other authorized 994 employee of the city shall be guilty of an offense and, upon conviction, shall pay a fine to 995 the city in an amount of not less than $25.00, nor more than $100.00 as provided for in 996 Appendix F, plus costs of prosecution. In addition to such penalties, all other actions are 997 hereby reserved, including an action in equity for the proper enforcement of this article. 39

998 The imposition of a fine or penalty for any violation of, or noncompliance with, this 999 article shall not excuse the violation or noncompliance or permit it to continue; and all 1000 such persons shall be required to correct or remedy such violations or non-compliances 1001 within a reasonable time. Any structure constructed, reconstructed, enlarged, altered, or 1002 relocated in noncompliance with this article may be declared by the building, plumbing, 1003 mechanical and fire prevention code appeals committee to be a public nuisance and 1004 abatable as such. 1005 (Code 1981, § 7.5-20; Ord. of 8-23-1982, § 7.3) 1006 1007 BE IT FURTHER ORDAINED THAT: 1008 Chapter 54 – Health and Sanitation, Article I – In General, be amended by inserting the blue text 1009 and deleting the text in red strikeout, as follows: 1010 Sec. 54-4. Smoking Regulations 1011 (a) Generally. The Surgeon General of the United States, the National Academy of 1012 Sciences, and other health organizations have linked passive exposure to tobacco smoke 1013 (secondhand smoke) to a variety of negative health conditions in nonsmokers, which has 1014 prompted the council to enact smoking regulations for the health, welfare and safety of 1015 residents of the city and to strike a reasonable balance between the rights of smokers and 1016 nonsmokers by regulating smoking in certain public places and places of employment. 1017 (b) Definitions. The following words, terms and phrases, when used in this section, 1018 shall have the meanings ascribed to them in this subsection, except where the context 1019 clearly indicates a different meaning: 1020 Bar or cocktail lounge area means that part of any restaurant or other 1021 establishment, to a depth of 20 feet from such bar, primarily engaged in the business of 1022 selling or dispensing alcoholic beverages or other beverages and duly licensed by the 40

1023 state for the same, but secondary to the restaurant or other primary use of the 1024 establishment. 1025 Employee means any person who renders or has rendered any service to another 1026 for a consideration or its equivalent, under an expressed or implied contract, and who is 1027 or was under the control and direction of the latter when rendering the services, including 1028 temporary, provisional, casual or part-time employment. 1029 Employer means an individual, partnership, association, corporation, 1030 governmental body or agency, or any other entity, for whom or for which one or more 1031 persons renders or have rendered any service on a salary, commission or other 1032 compensation basis. 1033 Health care facility means any office or institution providing individual care or 1034 treatment of diseases, whether physical, mental or emotional, or other medical, 1035 physiological or psychological conditions. 1036 Place of employment means any enclosed area under the control of a public or 1037 private employer, which employees normally frequent during the course of employment. 1038 A private residence is not considered to be a place of employment for the purpose of this 1039 section, nor is a motor vehicle of the employer used by employees in the course of 1040 employment. 1041 Public conveyance means any taxicab, mass transit vehicle or school bus, or any 1042 vehicle offered to passengers for a fee. 1043 Public meeting includes any meeting or assembly held in any room, auditorium 1044 or chamber wherein public, civic or governmental business is conducted and which is 1045 open to the public either as participants or spectators. 1046 Public place includes any enclosed area to which the public is invited or in 1047 which the public is permitted, including, but not limited to, banks; educational facilities; 1048 health care facilities; day care centers, retirement homes, rest or nursing centers; property 41

1049 owned, occupied or operated by the city or any agency thereof; public transportation 1050 facilities; lobbies and reception areas, but not including the offices or work areas not 1051 entered by the public in the normal course of business or use of the premises. A private 1052 residence is not a public place, but the lobby or common area of a multifamily dwelling is 1053 a public place. 1054 Restaurant means any establishment which is regularly used and kept open 1055 principally for the purpose of serving complete meals to persons for a consideration and 1056 which has seating at tables for 35 or more persons, and suitable kitchen facilities 1057 connected therewith for cooking an assortment of foods under the charge of a chef or 1058 cook. The service of only such food and victuals as sandwiches or salads shall not be 1059 deemed to be the service of meals. Any such establishment shall be duly licensed as a 1060 restaurant by the city and state. 1061 Retail store means any establishment, the primary purpose of which is to sell or 1062 offer for sale to consumers, not for resale, any goods, wares, merchandise, articles or 1063 food for consumption off the premises. 1064 Secondhand smoke means the smoke to which a person may be involuntarily 1065 exposed, either through a smoker exhaling the smoke of or from a tobacco product, or 1066 through the lighting or burning of any tobacco product. 1067 Smoking includes the lighting, burning, holding or carrying of, or emitting, or 1068 inhaling, or exhaling the smoke of, a pipe, cigar or cigarette of any kind or any form of 1069 lighted object or device which contains tobacco. 1070 Sports arena means any indoor facility primarily used for sports, cultural or 1071 similar events. 1072 Taproom means any establishment which is regulated and licensed as such by the 1073 state pursuant to the Delaware Alcoholic Beverage Control Act (4 Del. C. § 101 et seq.), 1074 and which is provided with special space and accommodations and operated primarily for 42

1075 the sale by the glass for consumption on the premises of alcoholic beverages with the sale 1076 of food as a secondary object, as distinguished from a restaurant where the sale of food is 1077 the primary object. 1078 Tavern means any business selling spirits, wine or beer by the glass at retail for 1079 consumption on the premises, and which is duly licensed and regulated as such pursuant 1080 to the Delaware Alcoholic Beverage Control Act, and in which the sale of food is a 1081 secondary object, as distinguished from a restaurant where the sale of food is the primary 1082 object. 1083 Theater means any indoor facility primarily used for the exhibition of any motion 1084 picture, stage drama, musical recital, dance, lecture or other similar performance. 1085 (c) Prohibitions. Smoking is unlawful in "public places" as such term is defined in 1086 subsection (b) of this section and in the following public places during the hours in which 1087 they are open to the public: 1088 (1) Art galleries, libraries, museums and similar cultural facilities; 1089 (2) Classrooms and lecture halls; 1090 (3) Restaurants; 1091 (4) Elevators; 1092 (5) Health care facilities; 1093 (6) Public conveyances; 1094 (7) Public meetings; 1095 (8) Retail stores, other than retail tobacco stores, the primary activity of which 1096 is the sale or promotion of tobacco and tobacco products and accessories; 1097 provided, however, that smoking may be permitted in those areas of enclosed 1098 shopping centers or malls that are external to the retail stores and are used by 1099 customers as a route of travel from one store to another and consist primarily of 43

1100 walkways and seating arrangements; and further provided that where smoking is 1101 permitted, the proprietor shall post a sign to that effect; 1102 (9) Theaters and indoor sports arenas; 1103 (10) Restrooms located in "public places" as such term is defined in subsection 1104 (b) of this section, and in the facilities listed in subsections (c)(1), (c)(2), (c)(5), 1105 (c)(6), (c)(8), and (c)(9) of this section; and 1106 (11) Places of employment not exempted in 16 Del. C. § 2904. 1107 (d) Violations; penalties; appeals. 1108 (1) Violations. The following acts constitute violations of this section: 1109 a. Smoking in a posted nonsmoking area; 1110 b. Failure to post a "No Smoking" sign as required by this section; 1111 c. Failure to inform any person who violates this section, when such 1112 duty to inform arises as set forth in subsection (f) of this section; 1113 d. Willful destruction or defacement of a sign posted as required by this 1114 section; 1115 e. Failure to adopt a smoking policy as set forth in subsection (f) of this 1116 section. 1117 (2) Penalties. Anyone who violates any provision of this section shall be liable 1118 for a fine in an amount not to exceed $25.00 as provided for in Appendix F. 1119 Each day such violation continues, shall constitute a separate offense. Fines not 1120 paid within 14 days of the day the fine was issued, including the day the fine was 1121 issued, shall be automatically doubled in amount. 1122 (3) Appeals. In the event that the enforcement of this section causes undue and 1123 extraordinary financial hardship peculiar to any person, then that person shall 1124 have the right to appeal this hardship to the council by written request directed to 1125 the city clerk. In considering the appeal, the council shall have the power to alter 44

1126 the terms and conditions of this section to meet any peculiar and extraordinary 1127 hardship proven by the person as long as such alteration or relief does not detract 1128 from the purpose and intent of this section. 1129 (e) Signs. The owner or other person having the authority to manage and control any 1130 area designated as a no-smoking area pursuant to this section shall post, or cause to be 1131 posted, and prominently display, and shall maintain, no-smoking signs in conspicuous 1132 locations within such areas. Such signs shall clearly and conspicuously recite the phrase 1133 "No Smoking" and/or use the international no-smoking symbol and shall cite "Section 1134 54-4 of the city Code." Signs shall be of sufficient number and prominent location to 1135 convey the message clearly and legibly to a person of reasonable sensibilities. Signs shall 1136 be at least one square foot in size, shall be affixed to the structure of the building and/or 1137 shall be so distributed that from any point in the no-smoking area at least one such sign is 1138 visible. A combination of fixed or pedestal type signs may be used. 1139 (f) Places of employment. 1140 (1) Written smoking policy. Every employer of 25 or more employees at any 1141 one location in the city, if exempted in 16 Del. C. § 2904, shall adopt, implement 1142 and maintain a written smoking policy which shall contain, at a minimum, the 1143 following provisions: 1144 a. Accommodate preferences. A statement providing that the employer 1145 shall attempt to reach a reasonable accommodation, insofar as possible, 1146 between the preferences of smoking and nonsmoking employees; 1147 provided, however, that the employers are not required to incur any 1148 expense to make structural or physical modifications to accommodate 1149 individual preferences; however, if a satisfactory accommodation cannot 1150 be reached, the preferences of nonsmoking employees shall prevail; 45

1151 b. Offices. Smoking may be permitted in private, enclosed offices, even 1152 though such offices may be visited in the normal course of business by 1153 nonsmoking employees; 1154 c. Common use. Prohibition of smoking in auditoriums, classrooms, 1155 elevators, medical facilities, conference rooms and rooms containing 1156 photocopying or other office equipment used in common by employees; 1157 d. Cafeterias, lunchrooms, and lounges. Designation of some portion 1158 of the seating capacity of cafeterias, lunchrooms and employee lounges 1159 as no-smoking areas; provided, however, that if there are two or more 1160 lounges available for employee use, one entire lounge may be designated 1161 as a smoking area; 1162 e. Disputes. A procedure to resolve employee disputes and objections 1163 arising under the smoking policy; and 1164 f. Retaliation. A statement providing that the employer will not 1165 retaliate or take any adverse personnel action against any employee 1166 exercising his rights granted under the smoking policy. 1167 (2) Copies of policy to be provided to employees. Employers shall supply a 1168 written copy of the smoking policy to all current employees within 30 days of the 1169 date of adoption of such policy and shall supply copies of it to all future 1170 employees at the time of their entry into employment. 1171 (3) Posting of policy. Employers shall post the smoking policy conspicuously 1172 in the place of employment. 1173 (g) Enforcement. 1174 (1) Authority to restrict in employment and public areas. The owner, 1175 proprietor, manager, or other person having the authority to manage and control 1176 any public place or place of employment, or a designated agent of such owner or 46

1177 manager, shall inform persons smoking in restricted areas of such places in order 1178 to warn them that they are in violation of the law. Any person may file a 1179 complaint with the licensing division of the department of planning and 1180 inspections or with the police department, alleging a violation of any provision of 1181 this section. 1182 (2) Procedures. Upon complaint to the licensing division of the department of 1183 planning and inspections or the police department, each department shall have 1184 concurrent jurisdiction to enforce the provisions of this section by any of the 1185 following actions: 1186 a. Notice. Serving notice requiring the prompt correction by the owner, 1187 proprietor, manager or other person having the authority to manage and 1188 control any public place or place of employment of any violation of this 1189 section; 1190 b. Legal action. Advising the city solicitor of violations of this section 1191 in order to maintain an action at law or in equity to enforce the 1192 provisions of this section, recover the fines and costs of prosecution, or 1193 prevent, enjoin, abate or remove or otherwise cause the correction of any 1194 such violation of the provisions of this section; 1195 c. Summons. Issue to any person a citation or summons to appear in the 1196 justices of the peace court to answer to a charge of any violation of this 1197 section. 1198 (h) Miscellaneous provisions. 1199 (1) Other prohibitions. Nothing in this section shall be construed to permit 1200 smoking where it is otherwise prohibited by law or regulation. 1201 (2) Authority of owner. Nothing in this section shall be construed to preclude 1202 any owner or other person having the authority to manage and control any public 47

1203 place or place of employment from prohibiting smoking to a greater extent than 1204 is provided by this section. 1205 (3) Fire safety. Nothing in this section shall be construed to permit or authorize, 1206 or be permitted to result in a fire safety hazard or violation, as may be determined 1207 by the fire marshal, by anyone in attempting to comply with the provisions of this 1208 section. 1209 (Code 1981, § 14-15; Ord. of 4-8-1991; Ord. of 4-12-1993; Ord. of 9-22-2003) 1210 1211 BE IT FURTHER ORDAINED THAT: 1212 Chapter 54 - Health and Sanitation, Article II - Food and Food Handlers, Division 2 - Certificate, 1213 be amended by inserting the blue text and deleting the text in red strikeout, as follows: 1214 Sec. 54-52. Fee. 1215 (a) Type of establishment. A person desiring the certificate required by the provisions of 1216 this division shall pay the appropriate certificate fee as provided for in Appendix F. as 1217 follows: 1218 (1) Mobile food units . . . $ 50.00 1219 (2) Push carts . . . 25.00 1220 (3) For profit temporary eating places . . . 25.00 1221 (4) Membership clubs . . . 50.00 1222 (5) Institutions . . . 100.00 1223 (6) All other public eating establishments as per the schedule found in subsection 1224 (b) of this section. 1225 (b) Services provided. Public eating establishments paying a certificate fee based on the 1226 following schedule provided in Appendix F shall calculate the fee based on the sum of 1227 the fee amounts for each service provided by the establishment. 1228 (1) Breakfast service . . . $ 15.00 48

1229 (2) Lunch service . . . 18.00 1230 (3) Dinner service . . . 18.00 1231 (4) Salad bar service . . . 15.00 1232 (5) Hot and cold buffet, including salad bar service . . . 40.00 1233 (6) Drive-through service . . . 75.00 1234 (7) Delivery service . . . 20.00 1235 (8) Catering service . . . 15.00 1236 (9) Takeout service . . . 20.00 1237 (10) Seating service: 1238 100--150 . . . 50.00 1239 151--200 . . . 75.00 1240 201 or more . . . 100.00 1241 (Code 1981, § 9-18; Ord. of 1-22-1993) 1242 1243 BE IT FURTHER ORDAINED THAT: 1244 Chapter 62 - Law Enforcement, Article I - In General, be amended by inserting the blue text and 1245 deleting the text in red strikeout, as follows: 1246 Sec. 62-2. False Alarms to Police. 1247 (a) Definitions. The following words, terms and phrases, when used in this section, 1248 shall have the meanings ascribed to them in this subsection, except where the context 1249 clearly indicates a different meaning: 1250 Alarm system means an assembly of equipment and devices arranged to signal 1251 the presence of a situation requiring urgent attention and to which police are expected to 1252 respond. 49

1253 Alarm user means any person, firm, partnership, corporation, or other entity, or 1254 any agent, officer, or employee thereof, on whose premises an alarm system is 1255 maintained within the city. 1256 False alarm means the activation of an alarm system through negligence of the 1257 alarm user, causing the city police to respond. Negligence does not include, for example, 1258 alarms caused by hurricanes, tornadoes, earthquakes, mechanical failure, malfunction, or 1259 improper installation; provided, however, in the event that during the course of the 1260 calendar year an alarm user has three mechanical failures, malfunctions, or improper 1261 installations causing a false alarm, then the third such mechanical failure, malfunction, or 1262 improper installation within the calendar year shall constitute negligence. 1263 (b) Maintenance of alarm system. Every alarm user shall maintain its alarm system in 1264 such a manner as to minimize the number of incidents of false alarms to the police. 1265 (c) Violations; penalties. 1266 (1) When there is a false alarm signal eliciting notification to and a response by 1267 the city police department when a situation requiring a response by the police 1268 does not in fact exist, but is in fact negligently caused by the alarm user, then 1269 the alarm user shall be charged as provided in this subsection for false alarms 1270 transmitted during the calendar year. An alarm user is permitted to have two 1271 false alarms every calendar year; thereafter, the following fees as provided for in 1272 section Appendix F shall be imposed: 1273 TABLE INSET: 1274 Number of False Alarms Amount of Fee Per False Alarm 1275 3--5 $ 25.00 6--9 50.00 1276 10--15 100.00 1277 16 and over 150.00 50

1278 (2) Such fees shall be paid directly to the city police department within 30 days 1279 of the day the fee was issued. Fees not paid within 30 days of the day the fee was 1280 issued, including the day the fee was issued, shall be automatically doubled in 1281 amount. 1282 (Code 1981, § 14-3.5; Ord. of 8-9-1982; Ord. of 8-28-2000; Ord. of 9-22-2003; Ord. of 3-8-2004) 1283 1284 BE IT FURTHER ORDAINED THAT: 1285 Chapter 66 - Manufactured Homes and Trailers, be amended by inserting the blue text and 1286 deleting the text in red strikeout, as follows: 1287 Sec. 66-2. License. 1288 a) Required fee. The owner of a mobile home shall obtain an annual license for it and 1289 shall pay a fee of $45.00 for such license as provided for in section Appendix F. 1290 (b) Payment; penalties. Such license shall be obtained and the license fee paid by July 1 1291 of each year and if such fee is not paid before August 1 of such year, then, in addition to 1292 any penalty incurred pursuant to section 1-17, a penalty fee of ten percent per month shall 1293 accrue on the unpaid balance of the license fee. 1294 (c) Moving into city. Upon the moving of a mobile home into the city, such license shall 1295 be obtained and the license fee paid within seven days. Payment of such license fee shall 1296 be prorated on a quarterly basis for each fractional part of a year during which the mobile 1297 home is in the city. 1298 (d) Sticker; where placed. Once the annual license fee has been paid by the owner of a 1299 mobile home, he shall be issued a sticker or other evidence of payment by the city 1300 manager or his authorized agent. This sticker or other evidence of payment must be 1301 placed upon the mobile home on the front of the mobile home facing the street on the 1302 right hand side when facing said mobile home one foot up from the bottom of the skirting 1303 and one foot over from the side of the mobile home. 51

1304 (Ord. of 2-23-1970, § 2; Ord. of 5-24-1976; Ord. of 3-27-1980; Code 1981, § 12-2; Ord. of 8-8-1988; 1305 Ord. of 3-22-1993) 1306 1307 BE IT FURTHER ORDAINED THAT: 1308 Chapter 70 - Offenses and Miscellaneous Provisions, be amended by inserting the blue text and 1309 deleting the text in red strikeout, as follows: 1310 Sec. 70-1. Combative fighting. 1311 (a) Definitions. The following words, terms and phrases, when used in this section, 1312 shall have the meanings ascribed to them in this subsection, except where the context 1313 clearly indicates a different meaning: 1314 Contest means a live boxing contest, match, performance, sparring match, 1315 wrestling match, or exhibition demonstrating the skill and ability of professional 1316 contestants when an admission fee is charged or that is telecast, televised, or broadcast to 1317 the public in any manner, including television, radio, transmission via cable television 1318 system, microwave, closed-circuit, satellite, fiberoptic link, or any other method of 1319 distribution. 1320 Exhibition means an engagement in which the participants show or display their 1321 skills without necessarily striving to win. 1322 Match. See definition in this subsection of the term Contest. 1323 Program of matches means a group of matches, events, contests, or exhibitions 1324 billed and/or promoted together, or organized by the same promoter. 1325 Tough man contest means a contest in which tough man contestants compete. 1326 Tough man contestant means a person who: 1327 (1) Participates in a contest for a cash purse in any amount or for a noncash 1328 purse with more than a nominal value; and 1329 (2) Is not licensed as a professional contestant in any state. 52

1330 Ultimate fighting match means a live match in which: 1331 (1) An admission fee is charged; 1332 (2) Match rules permit contestants to use a combination of boxing, kicking, 1333 wrestling, hitting, punching, or other combative contact techniques; and 1334 (3) Match rules do not: 1335 a. Incorporate a formalized system of combative techniques against 1336 which a contestant performance is judged to determine the prevailing 1337 contestant; 1338 b. Divide a match into two or more equal and specified time periods for 1339 a match total of no more than 50 minutes; or 1340 c. Prohibit contestants from: 1341 1. Using anything that is not part of the human body, except for 1342 boxing gloves, to intentionally inflict serious bodily injury upon 1343 an opponent through direct contact or the expulsion of a 1344 projectile; 1345 2. Striking a person who demonstrates an inability to protect 1346 himself from the advances of an opponent; 1347 3. Biting; or 1348 4. Direct, intentional and forceful strikes to the eyes, groin area, 1349 Adam's apple area of the neck, and temple area of the head. 1350 (b) Prohibited. The following types of events shall be prohibited: 1351 (1) Tough man. Professional or amateur tough man matches. Such competition 1352 includes any contest or exhibition where participants compete by using a 1353 combination of skills; 1354 (2) Ultimate fighting. Ultimate fighting matches; 53

1355 (3) Brawls. Any barroom type brawls, "so you think you're tough"-type 1356 challenges, and roughneck-type bouts. 1357 (c) Exclusions. This section shall not apply to any match approved by the director of the 1358 division of professional regulations for the state. 1359 (d) Violations; penalties. 1360 (1) Fines. Promoting, hosting, organizing, staging, conducting and/or 1361 participating in an event that does not meet the requirements set out in this 1362 section shall be subject to a fine in an amount not to exceed $1,000.00 as 1363 provided for in Appendix F. Separate fines may be issued to the promoter of such 1364 an event, participants in such an event, and the owner of the premises of such an 1365 event. 1366 (2) Suspension or revocation of license or permit. The city will suspend or 1367 revoke a license or permit if the city finds that the licensee or permittee has been 1368 violating the requirements of this chapter. 1369 (Code 1981, § 14-1; Ord. of 9-8-2003) 1370 1371 BE FURTHER ORDAINED THAT: 1372 Chapter 74 - Parks and Recreation, Article I - In General, be amended by inserting the blue text 1373 and deleting the text in red strikeout, as follows: 1374 Sec. 74-51 Same-Fine. 1375 Any person who shall violate any of the sections of this chapter, or who shall fail to 1376 comply therewith or with any of the requirements thereof, shall be subject to a fine not to 1377 exceed $100.00, and not less than $10.00 as provided for in Appendix F. Fines not paid 1378 within 14 days of the day the fine was issued, including the day the fine was issued, shall 1379 be automatically doubled in amount. 1380 (Code 1981, § 15-51; Ord. of 7-28-1986; Ord. of 9-22-2003) 54

1381 BE IT FURTHER ORDAINED THAT: 1382 Chapter 86 - Secondhand Goods, Article II - Precious Metals, Division 2 - License, be amended 1383 by inserting the blue text and deleting the text in red strikeout, as follows: 1384 Sec. 86-63 License Fee. 1385 The license fee to be paid to the city license officer by any secondhand dealer of precious 1386 metals shall be $25.00 as provided for in Appendix F. 1387 (Ord. of 6-22-1981, § 4; Code 1981, § 18.5-19 1388 BE IT FURTHER ORDAINED THAT: 1389 Chapter 86 - Secondhand Goods, Article II - Precious Metals, Division 2 - License, be amended 1390 by inserting the blue text and deleting the text in red strikeout, as follows: 1391 Sec. 86-64 Bond Required. 1392 Every secondhand dealer of precious metals shall, at the time of receiving such license, 1393 execute a bond to the city in the penal sum of $1,000.00 as provided for in Appendix F, 1394 with good and sufficient surety or sureties to be approved by the city solicitor, 1395 conditioned that said licensee will faithfully observe and comply with the provisions of 1396 this article at all times during the continuance of such license, and conditioned further to 1397 indemnify, keep, and save harmless the city against all liabilities, judgments, costs, 1398 damages and expenses which may in any way come against the city in consequence of 1399 the issuance of said license, or from or by any act or thing done or neglected to be done 1400 by said licensee under and by virtue of the authority granted in said license, or the failure 1401 or neglect of such licensee to observe and comply with ordinances of the city relating to 1402 the business licensed. 1403 (Ord. of 6-22-1981, § 11; Code 1981, § 18.5-20) 1404 1405 1406 55

1407 BE IT FURTHER ORDAINED THAT: 1408 Chapter 90 - Solid Waste, be amended by inserting the blue text and deleting the text in red 1409 strikeout, as follows: 1410 Sec. 90-17 Violations; penalties 1411 Any person convicted of violating any provision of this chapter shall be fined in an 1412 amount not in excess of $100.00, nor less than $5.00 for each violation as provided for in 1413 appendix F, and if the violation amounts to an unlawful deposit of rubbish, refuse or 1414 other offensive matter in the corporate limits of the city, he shall be directed to remove 1415 the same, and in the event of his failure to do so, the offensive matter shall be removed by 1416 the city at the expense of the violator. Fines not paid within 14 days of the day the fine 1417 was issued, including the day the fine was issued, shall be automatically doubled in 1418 amount. 1419 (Code 1981, § 8-15; Ord. of 8-23-1982; Ord. of 9-22-2003) 1420 BE IT FURTHER ORDAINED THAT: 1421 Chapter 98 – Streets, Sidewalks and other Public Places, Article V – Excavations, Division 2 – 1422 Permits, be amended by inserting the blue text and deleting the text in red strikeout, as follows: 1423 Sec. 98-193 Bond. 1424 No permit shall be issued to any person permitting or allowing the opening or the making 1425 of an excavation in any street, sidewalk, public alley or public place, or any part thereof, 1426 until the person making application for such permit shall have first executed to the city a 1427 good and sufficient bond up to the sum of $5,000.00 per opening as provided for in 1428 Appendix F, with sureties to be approved by the city manager, conditioned to indemnify 1429 and keep harmless the city from any and all loss, cost, damage, expense or liability of any 1430 kind whatsoever, which the city may suffer or to which it may be put or which may be 1431 recovered from it from or on account of the issuance of such permit or from or on 1432 account of any act or thing done by virtue of the authority given in such permit or by 56

1433 reason of careless or improper guarding of said openings or excavations, or for any 1434 damage, loss or expense to any person caused by or on account of the obstruction of any 1435 street, sidewalk, public alley, or public place, or the tearing up, repairing or removing of 1436 such street, sidewalk, public alley or public place, or part thereof. A bond shall be filed 1437 each year for the openings or excavations to be made during that year, which said year 1438 shall commence on the May 1 and end on April 30. 1439 (Code 1981, § 19-73) 1440 1441 BE IT FURTHER ORDAINED THAT: 1442 Chapter 98 - Streets, Sidewalks and Other Public Places, Article VI - Parades, Division 2 - 1443 Permits, be amended by inserting the blue text and deleting the text in red strikeout, as follows: 1444 Sec. 98-243 Fee. 1445 There shall be paid a fee of $10.00 as provided for in Appendix F, at the time of filing the 1446 application for a parade permit. This fee may be waived, in whole or in part, by the chief 1447 of police. 1448 (Code 1968, § 6-4; Ord. of 6-22-1970; Code 1981, § 19-95) 1449 1450 BE IT FURTHER ORDAINED THAT: 1451 Chapter 102 – Taxation, Article I - General, be amended by inserting the blue text and deleting 1452 the text in red strikeout, as follows: 1453 Sec. 102-2 Delinquent property tax collection 1454 (a) If an action to collect delinquent property taxes is filed in a court of appropriate 1455 jurisdiction, a fee of $50.00 as provided for in Appendix F shall be added to the amount 1456 due. 57

1457 (b) If an action proceeds and a writ of venditioni exponas monition or similar execution 1458 process is filed, an additional fee of $100.00 as provided for in Appendix F shall be 1459 added to the amount due. 1460 (c) The fees established by this section shall be in addition to court costs and service 1461 fees assessed by state or county offices. 1462 (Code 1981, § 19.5-46; Ord. of 11-24-1997) 1463 1464 BE IT FURTHER ORDAINED THAT: 1465 Chapter 102 - Taxation, Article III - Reality Transfer Tax, be amended by inserting the blue text 1466 and deleting the text in red strikeout, as follows: 1467 Sec. 102-79 Violations; penalties. 1468 Any person guilty of conduct prohibited in section 102-78 shall, upon conviction, be 1469 punished by imposition of a fine of not more than $100.00 as provided for in Appendix F. 1470 Fines not paid within 14 days of the day the fine was issued, including the day the fine 1471 was issued, shall be automatically doubled in amount. 1472 (Code 1981, § 19.5-26; Ord. of 6-27-1988; Ord. of 9-22-2003) 1473 1474 BE IT FURTHER ORDAINED THAT: 1475 Chapter 106 – Traffic and Vehicles, Article I - General, be amended by inserting the blue text and 1476 deleting the text in red strikeout, as follows: 1477 Sec. 106-14 Off road motor vehicle regulations. 1478 (a) Definitions. The following words, terms and phrases, when used in this section, 1479 shall have the meanings ascribed to them in this subsection, except where the context 1480 clearly indicates a different meaning: 58

1481 Off-road motor vehicle means any motor vehicle or other motorized vehicle not 1482 licensed to travel on the public roads of the state or permitted to travel on the public roads 1483 of the state. 1484 (b) Regulations. All off-road motor vehicles shall comply with the following 1485 regulations: 1486 (1) City license. The operator must obtain a license from the city in order to 1487 operate the vehicle within the corporate limits of the city, which license shall be 1488 issued according to regulations adopted by the city regarding the amount of the 1489 fee, display of the license, proof of insurance coverage, etc. 1490 (2) Muffler. The vehicle must have a muffler system which limits engine noises 1491 to state noise violation standards. 1492 (3) Place of operation; approval. The operator must have in his possession 1493 written approval of the owner of the property upon which he operates the vehicle 1494 or he must operate the vehicle on a site which is licensed and designated for such 1495 purpose. 1496 (c) Violations. If any person witnesses a violation of subsection (b)(1), (b)(2), or (b)(3) 1497 of this section by a person on or in a motor vehicle and the identity of the offender is not 1498 otherwise apparent, there shall be a rebuttable presumption that the person in whose name 1499 such motor vehicle is registered committed such violation. 1500 (d) Penalties. Anyone violating any provision of this section shall be fined a minimum 1501 of $25.00 and a maximum of $100.00 as provided for in appendix F. Fines not paid 1502 within 14 days of the day the fine was issued, including the day the fine was issued, shall 1503 be automatically doubled in amount. 1504 (Code 1981, § 13-15; Ord. of 9-13-1982, § 2; Ord. of 9-22-2003) 1505 1506 59

1507 BE IT FURTHER ORDAINED THAT: 1508 Chapter 106 – Traffic and Vehicles, Article I - General, be amended by inserting the blue text and 1509 deleting the text in red strikeout, as follows: 1510 Sec. 106-15. Failure to stop for a red traffic signal; traffic light signal violation monitoring 1511 program; penalties. 1512 (a) Generally. Vehicular traffic facing a red traffic signal shall stop before crossing the 1513 stop limit, whether marked by a sign or painted line or, if none, before entering the 1514 crosswalk on the near side of the intersection or, if none, then before entering the 1515 intersection, and shall remain standing until an indication to proceed is shown. 1516 (b) Traffic light signal violation monitoring program. 1517 (1) Definitions. The following words, terms and phrases, when used in this 1518 subsection (b), shall have the meanings ascribed to them in this subsection, 1519 except where the context clearly indicates a different meaning: 1520 Owner means the registered owner of such vehicle on record with the division of 1521 motor vehicles; provided, however, that in the event the owner is a vehicle leasing 1522 company licensed to do business in this state, the "owner" shall mean the person shown 1523 on the records of the division of motor vehicles to be the lessee of such vehicle. Vehicle 1524 rental companies are excluded from the definition of the term "owner" for purposes of 1525 this subsection (b) only. 1526 Traffic light signal violation monitoring system means a vehicle sensor installed 1527 to work in conjunction with a traffic light that automatically produces two or more 1528 photographs, two or more microphotographs, a videotape, or other recorded images of 1529 each vehicle at the time it is used or operated in violation of this subsection (b). 1530 (2) Administration and enforcement. A failure to stop for a red traffic signal 1531 may be recorded by a traffic light signal violation monitoring system in 1532 accordance with a program or authorization approved by the city manager, 60

1533 pursuant to the provisions of 21 Del. C. § 4101(d) and this section. The 1534 administration and enforcement of the provisions of this section shall be done in 1535 accordance with the provisions of 21 Del. C. § 4101(d), which shall prevail in the 1536 event of any conflict with the provisions of this section. 1537 (3) Civil or administrative assessment. The owner or operator of a vehicle 1538 which has failed to comply with a traffic light signal, as evidenced by 1539 information obtained by a traffic light signal violation monitoring system, shall 1540 be liable for a civil or administrative monetary assessment of $75.00; provided, 1541 however, if the civil or administrative assessment is not paid within 14 days, an 1542 additional assessment of $10.00 shall be added to the original assessment, which 1543 additional assessment shall be increased to $20.00 if the assessment is not paid 1544 within 45 days, and shall be increased to $30.00 if the assessment is not paid 1545 within 90 days as provided for in Appendix F. Court costs or similar 1546 administrative fees, not to exceed $30.00, as provided for in Appendix F, may 1547 also be assessed if the owner requests a hearing to contest the violation, and is 1548 ultimately found to be in violation or fails to pay or contest the violation in a 1549 timely manner. 1550 (4) Nonclassification as criminal offense. A violation for which a civil or 1551 administrative assessment is imposed pursuant to subsection (b)(3) of this section 1552 shall not be classified as a criminal offense. Judgments pursuant to this section 1553 shall not be deemed a conviction of the owner and shall not be made part of the 1554 motor vehicle operating record of the person upon whom such liability is 1555 imposed. 1556 (5) Summons and notice of violation. 1557 a. A summons for a violation of this subsection (b) may be executed by 1558 mailing a copy thereof by first class mail to the address of the owner of 61

1559 the vehicle as shown on the records of the division of motor vehicles of 1560 this or any other state. Collection actions, including default judgment and 1561 execution, may proceed, based upon jurisdiction obtained through the 1562 mailing by first class mail of a summons and subsequent court notices 1563 pursuant to this subsection. Every initial mailing shall include the: 1564 1. Name and address of the owner of the vehicle; 1565 2. Registration number of the motor vehicle involved in the 1566 violation; 1567 3. Violation charges; 1568 4. Location where the violation occurred; 1569 5. Date and time of the violation; 1570 6. Copies of two or more photographs, microphotographs or 1571 other recorded images taken as proof of the violation; 1572 7. Amount of the civil assessment imposed and the date by 1573 which the civil assessment should be paid; 1574 8. Information advising the summonsed person of the matter, 1575 time and place by which liability as alleged in the notice may be 1576 contested, and warning that the failure to pay the civil 1577 assessment or contest liability in a timely manner is an admission 1578 of liability and may result in a judgment being entered against 1579 the summonsed person and/or the denial of the registration or the 1580 renewal of the registration of any of the owner's vehicles; and 1581 9. Notice of the summonsed person's ability to rebut the 1582 presumption that he was the operator of the vehicle at the time of 1583 the alleged violation and the means for rebutting such 1584 presumption. 62

1585 b. All subsequent mailings of court notices, summonses, and payment 1586 requests shall include all information listed in subsections (b)(5)a.1.--9. 1587 of this section. 1588 (6) Payment by voluntary assessment. Persons electing to pay by voluntary 1589 assessment shall make payments to the entity designated for payment on the 1590 summons. Procedures for payment under this subsection shall be as provided by 1591 court rule of the justice of the peace court and shall be in lieu of the procedures 1592 set forth in 21 Del. C. § 709. 1593 (7) Procedures to contest violations. A person receiving the summons pursuant 1594 to this subsection (b) may request a hearing to contest the violation by notifying, 1595 in writing, the entity designated on the summons within 20 days of the date of 1596 such summons. Upon receipt of a timely request for a hearing, a civil hearing 1597 shall be scheduled and the defendant notified of the hearing date by first class 1598 mail. A civil hearing shall be held by the justice of the peace court. The hearing 1599 may be informal and shall be held in accordance with justice of the peace court 1600 rules. Costs for such hearing shall not be assessed against the prevailing party. 1601 (8) Failure to pay or successfully contest a violation. If the owner fails to pay 1602 the civil assessment, to respond to the summons within the time period specified 1603 on the summons, and/or to successfully contest the civil assessment resulting 1604 from the violation, the city manager shall notify the division of motor vehicles of 1605 such facts. In addition, city manager shall refer the unpaid assessment and costs 1606 to the administrative services department for the collection of these assessments 1607 and the city solicitor may enforce the assessments by civil action, including 1608 seeking judgment and execution on a judgment against the owner in accordance 1609 with this subsection (b). 63

1610 (9) Proof of violation. Proof of a violation of this subsection (b) shall be 1611 evidenced by information obtained from a traffic light signal violation 1612 monitoring system authorized pursuant to this subsection (b). A certificate, or 1613 facsimile thereof, based upon inspection of photographs, microphotographs, 1614 videotapes or other recorded images produced by a traffic light signal violation 1615 monitoring system shall constitute prima facie evidence of the facts contained 1616 therein, if the certificate, or facsimile thereof, is sworn to or affirmed by a 1617 technician employed by a locality authorized to impose assessments pursuant to 1618 this subsection (b), or by an employee of an entity designated by such locality to 1619 administer records under this subsection (b). Any photographs, 1620 microphotographs, videotapes or other recorded images evidencing such a 1621 violation shall be available for inspection in any proceeding to adjudicate the 1622 liability for such violation pursuant to regulation, ordinance or other law adopted 1623 pursuant to this subsection (b). Any affidavit submitted pursuant to subsection 1624 (b)(10)a.1. of this section shall be admissible in any proceeding to contest the 1625 violation. 1626 (10) Presumptions. 1627 a. The owner of any vehicle found to be in violation of this subsection 1628 (b) shall be held prima facie responsible for such violation in the same 1629 manner as provided for under 21 Del. C. § 7003, unless the owner can 1630 furnish evidence that the vehicle was, at the time of the violation, in the 1631 care, custody or control of another person. Such presumption shall be 1632 rebutted if the owner: 1633 1. Furnishes an affidavit by regular mail to the entity indicated 1634 on the summons that he was not the operator of the vehicle at the 1635 time of the alleged violation and provides the name and address 64

1636 of the person or company who leased, rented or otherwise had 1637 the care, custody or control of the vehicle, or attaches a certified 1638 copy of a police report showing that the vehicle or license plate 1639 thereof had been reported to the police as stolen prior to the time 1640 of the alleged violation of this subsection (b); or 1641 2. Provides proof at the hearing to contest the violation that he 1642 was not the operator of the vehicle at the time of the alleged 1643 violation or that he failed to comply with the traffic signal either 1644 in order to yield the right-of-way to an emergency vehicle or as 1645 part of a funeral procession. 1646 b. Notwithstanding any other provision in this section, if the motor 1647 vehicle which is found by the traffic light signal violation monitoring 1648 system to have failed to comply with a traffic light signal is 1649 commercially licensed, then the owner of that vehicle shall be sent notice 1650 of the date, time and location of the violation, with two photographs 1651 thereof. Within ten days of the receipt of said notice, the owner of the 1652 vehicle shall provide the law enforcement agency which has issued the 1653 summons with the name and address of the driver of the vehicle at the 1654 date, time and location of the violation, and within the same time period, 1655 shall provide the driver of the vehicle with the photographs of the 1656 violation. After receipt by the law enforcement agency which has issued 1657 the summons of the name and address of the driver of the vehicle at the 1658 time of the violation, the driver of the vehicle shall be prima facie 1659 responsible for such violation in the same manner as provided under 21 1660 Del. C. § 7003 and shall be subject to the provisions of this section. 1661 Failure of the owner of the vehicle found to be in violation of this 65

1662 subsection (b) to provide the name and address of the driver at the time 1663 of the violation within the period prescribed shall cause the owner to be 1664 held responsible as set forth in this subsection (b)(10). 1665 (c) Applicability. This section shall apply to all cases arising, opened or reopened on or 1666 after October 12, 2004, as well as those cases pending on October 12, 2004, without 1667 regard to the date of the alleged violation. 1668 (Ord. of 10-11-2004) 1669 1670 BE IT FURTHER ORDAINED THAT: 1671 Chapter 106 – Traffic and Vehicles, Article I - General, be amended by inserting the blue text and 1672 deleting the text in red strikeout, as follows: 1673 Sec. 106-16. Violations. 1674 (a) Except as otherwise provided, any person who: 1675 (1) Violates any provision of this chapter which is a moving offense shall be 1676 fined a minimum of $10.00 as provided for in Appendix F. 1677 (2) Violates a provision of this chapter which is a nonmoving offense shall be 1678 fined a minimum of $15.00 as provided for in Appendix F. 1679 (3) Violates a provision of this chapter which is a parking violation shall carry 1680 a fine of $20.00 for each offense; however, if the fine is paid within 72 hours 1681 from the date the offense is recorded in time, the fine shall be $15.00 as provided 1682 for in Appendix F. 1683 (b) Fines not paid within 14 days of the day the fine was issued, including the day the 1684 fine was issued, shall be automatically doubled in amount. 1685 (Code 1968, § 31-114; Ord. of 8-25-1971,§ 2; Code 1981, § 13-16; Ord. of 7-12-1982; Ord. of 8-23-1982; 1686 Ord. of 9-13-1982, § 1; Ord. of 6-26-1989; Ord. of 9-9-2002(1); Ord. of 9-22-2003; Ord. of 3-8-2004(2)) 1687 66

1688 BE IT FURTHER ORDAINED THAT: 1689 Chapter 106 – Traffic and Vehicles, Article II - Bicycles, be amended by inserting the blue text 1690 and deleting the text in red strikeout, as follows: 1691 Sec. 106-55. Penalties for violations. 1692 Any person, who shall violate any of the sections of this chapter, or who shall fail to 1693 comply therewith, or with any of the requirements thereof, shall be subject to a fine not to 1694 exceed $100.00 and not less than $10.00 as provided for in Appendix F. Fines not paid 1695 within 14 days of the day the fine was issued, including the day the fine was issued, shall 1696 be automatically doubled in amount. 1697 (Ord. of 4-11-2005(8), § 4.5-5) 1698 1699 BE IT FURTHER ORDAINED THAT: 1700 Chapter 106 – Traffic and Vehicles, Article III – Stopping, Standing and Parking, Division 2 – 1701 Metered Parking, be amended by inserting the blue text and deleting the text in red strikeout, as 1702 follows: 1703 Sec. 106-164. Violations; penalties 1704 (a) Generally. Any person convicted of violating the provisions of this division or of 1705 aiding, abetting or assisting in the violation of said provisions shall be sentenced to pay a 1706 fine of not less than $1.00 for each offense; provided, however, that any person violating 1707 the provisions of this division may, within 24 hours from the time that the summons 1708 giving notice of the violation is issued, pay the sum of $1.00 for each violation as 1709 provided for Appendix F. After the expiration of 24 hours, the violator may pay the sum 1710 of $2.00 for each violation as provided for Appendix F, if payment is made voluntarily 1711 prior to the time and date set forth in the summons. 1712 (b) Fourth violation. Any person committing a fourth violation within any 30-day 1713 period of the provisions of this division within one hour from the time that the summons 67

1714 giving notice of the violation is issued, may pay the sum of $1.00 for each such violation 1715 as provided for Appendix F. After the expiration of one hour from the issuance of the 1716 summons, the violator may pay the sum of $2.00 for each such violation as provided for 1717 Appendix F, if payment is made voluntarily prior to the time and date set forth in the 1718 summons. 1719 (c) Fifth violation, etc. Any person committing more than four violations within any 30- 1720 day period of the provisions of this division may pay the sum of $5.00 for each such 1721 violation as provided for Appendix F, if payment is made voluntarily prior to the time 1722 and date set forth in the summons. 1723 (d) Cost. No cost will be assessed if payment of the penalty as hereinbefore imposed is 1724 voluntarily paid without the necessity of a hearing before the proper official. 1725 (Code 1968, § 31-77; Ord. of 8-25-1971, § 1; Code 1981, § 13-49) 1726 1727 BE IT FURTHER ORDAINED THAT: 1728 Chapter 114 - Vegetation, Article II - Weed, be amended by inserting the blue text and deleting 1729 the text in red strikeout, as follows: 1730 Sec. 114-33. Failure to maintain proper height; abatement by city; costs and lien. 1731 (a) Summons; action by city. In the event that any owner, occupant or tenant of any 1732 premises within the city, or any agent caring for or in charge of the premises, shall permit 1733 any grass, weeds, underbrush, deleterious or unhealthful growths or other noxious matter 1734 to grow to a height of eight inches or more as prohibited by this article, then the health 1735 inspector or fire marshal or his authorized agents shall issue a summons showing a 1736 violation of section 114-32, said summons to be served personally or by certified mail 1737 upon the owner, occupant, or tenant of the premises, or any agent caring for or in charge 1738 of the premises. The summons shall cite the violation of this article and shall be 1739 accompanied by a letter or a copy of the relevant provisions of this article stating what 68

1740 corrective action must be taken and shall state the consequences for failure to take such 1741 corrective action. If the violation is not corrected within three days from the date of 1742 personal service of the summons or within seven days from the date of mailing of the 1743 summons by certified mail, then the city, at the direction of the health inspector or the fire 1744 marshal, may remove the weeds, grass, underbrush, deleterious or other unhealthful 1745 growths or other noxious matter growing to a height in excess of eight inches or more in 1746 violation of section 114-32 and charge the responsible person $50.00 per hour a fee as 1747 provided for in Appendix F, for such work that must be done to render the property in 1748 compliance with this article. When the owner, occupant, or tenant of any premises, or any 1749 agent caring for or in charge of the premises, has received summonses and fails to take 1750 corrective action, and the city has corrected the violation in accordance with this 1751 subsection, then no further notification shall be necessary for the city to take any further 1752 corrective action on any subsequent violations within the following 12-month period 1753 starting from the date of the first corrective action by the city. 1754 (b) Failure to pay charges. In the event that the owner, occupant, tenant or other agent 1755 caring for or in charge of the premises is deemed to be in violation of section 114-32, and 1756 in the event that the violation is corrected in compliance with subsection (a) of this 1757 section, and if the charges assessed by the city for correcting said deficiency are not paid, 1758 then the city, after having corrected the deficiency and violation, shall place its charges 1759 and expenses as specified in the municipal lien docket as a lien against said property, and 1760 the city solicitor shall be directed to enforce said lien or to collect the charges imposed by 1761 the city by any other means that he may deem desirable and most advantageous. 1762 (Ord. of 9-13-1976; Code 1981, § 21-18; Ord. of 7-27-1992; Ord. of 8-28-2000) 1763 1764 1765 69

1766 BE IT FURTHER ORDAINED THAT: 1767 Chapter 114 - Vegetation, Article II - Weed, be amended by inserting the blue text and deleting 1768 the text in red strikeout, as follows: 1769 Sec. 114-34. Fines. 1770 (a) Generally. Any person convicted of a violation of section 114-32, regardless of 1771 corrective actions taken, shall be punished for that violation by a fine of not less than 1772 $25.00, nor more than $100.00 as provided for in Appendix F. Any such fine shall be in 1773 addition to any charges or assessments imposed upon the violator pursuant to section 1774 114-33(a). All fines imposed shall be in accordance with the minimum fine schedule set 1775 out in subsection (c) herein. 1776 (b) Each day. Every day that a violation of section 114-32 continues shall be considered 1777 a separate offense, for which the violator may be tried and convicted without necessity of 1778 further notice. 1779 (c) Minimums. 1780 (1) Any fine assessed pursuant to subsection (a) of this section shall be no less 1781 than the minimum amount as provided for in Appendix F set out in the following 1782 schedule: 1783 a. First offense . . . $ 25.00 1784 b. Second offense . . . 50.00 1785 c. Third and subsequent offenses . . . 100.00. 1786 (2) In determining the applicable minimum fine, an offense shall be considered 1787 a recurring offense only if the defendant has previously pleaded, or been found 1788 guilty of causing or permitting the same nuisance at the same location within the 1789 past 18 months, or for every day that the violation of section 114-32 continues as 1790 per subsection (b) of this section. 70

1791 (d) Lien. Any fines imposed pursuant to subsection (a) of this section which remain 1792 unpaid shall be placed by the city as specified in the municipal lien docket as a lien 1793 against the property on which the violation occurred, and the procedures for enforcement 1794 or collection of said lien shall be as set out in section 114-33(b). 1795 (e) When not paid. Fines not paid within 14 days of the day the fine was issued, 1796 including the day the fine was issued, shall be automatically doubled in amount. 1797 (Code 1981, § 21-19; Ord. of 3-23-1992; Ord. of 7-27-1992; Ord. of 9-22-2003) 1798 1799 BE IT FURTHER ORDAINED THAT: 1800 Chapter 118 - Vehicles for Hire, Article II - Taxicabs, Division 2 - Operators Permit, be amended 1801 by inserting the blue text and deleting the text in red strikeout, as follows: 1802 Sec. 118-54. Fees. 1803 A person desiring a taxicab operator's permit shall pay a fee of $5.00 as provided for in 1804 Appendix F to the police department. 1805 (Code 1968, § 25-2; Code 1981, § 20-19) 1806 1807 BE IT FURTHER ORDAINED THAT: 1808 Appendix A - Subdivisions, Article IV – Subdivision - Procedures, be amended by inserting the 1809 blue text and deleting the text in red strikeout, as follows: 1810 Section A. Preapplication. 1811 1. Prior to filing an application for conditional subdivision approval, the 1812 subdivider shall meet, in person, with the city planner, or his/her designee, to discuss the 1813 proposed subdivision and the required steps associated with the review process and to 1814 determine whether or not the plan is a major subdivision, minor subdivision or whether 1815 the plan merely represents a minor lot line adjustment. Plans limited to minor lot line 1816 adjustments may be approved for recordation by the city planner, or his/her designee, 71

1817 after review and determination of compliance with all applicable zoning and subdivision 1818 regulations. 1819 2. Following this step, the subdivider shall submit to the commission pre- 1820 application plans and data as specified in article V, section A, with a filing fee of $200.00 1821 as provided for Appendix F. 1822 3. Prior to the review of the preapplication, the commission shall hold a public 1823 hearing to be advertised by the applicant in a newspaper of general circulation at least ten 1824 days prior thereto. The applicant shall notify, by mail, all property owners within 200 feet 1825 of the extreme limits of the subdivision, as their names appear on the municipal tax 1826 record, at least ten days prior thereto. The applicant shall provide the commission with a 1827 copy of the notice, verification of newspaper publication, and post office return receipts 1828 for all letters on or before the meeting date. Said notices shall state the time and place of 1829 the hearing, a brief description of the subdivision and that a copy of the subdivision 1830 application and plan is filed with the department of planning and inspections for public 1831 review. 1832 4. Within five days after the next regularly scheduled meeting of the 1833 commission following said preapplication, the commission shall notify the subdivider 1834 whether his proposal is classified as a minor subdivision and that the plans and data, as 1835 submitted, do or do not meet the objectives of these regulations, and if not, it shall state 1836 its reason therefore. Minor subdivisions shall be designated by a majority vote of the 1837 commission and shall only include subdivisions where no improvements, dedications or 1838 easements are required. If, in the opinion of the commission, the character of the 1839 subdivision (by reason of size or design) so warrants, it may hold a public hearing on the 1840 preapplication, with notice to be given substantially in accordance with subparagraph 1841 [subsection] 4. of this article. 1842 (Ord. of 6-24-1991; Ord. of 10-13-1992; Ord. of 4-25-1994; Ord. of 7-12-2004(2)) 72

1843 BE IT FURTHER ORDAINED THAT: 1844 Appendix A - Subdivisions, Article IV – Subdivision - Procedures, be amended by inserting the 1845 blue text and deleting the text in red strikeout, as follows: 1846 Section B. Filing Fee. 1847 1. A preliminary layout and other documents, as specified in article V, shall be 1848 prepared by the subdivider in accordance with the general requirements and design 1849 standards specified in article VI, and conforming to the conclusions reached by the 1850 commission with respect to the preapplication plan above. 1851 2. Application for conditional approval of the preliminary layout shall be 1852 submitted in writing for with a filing fee, as provided for in Appendix F, of $325.00 by 1853 the subdivider to the commission, together with the original and 20 prints of the 1854 preliminary layout, and other specified documents at least 30 days prior to the meeting at 1855 which it is to be considered. 1856 3. Since the provision of some public facilities and utilities are the responsibility 1857 of special districts, governments, boards, agencies or utility companies, the commission 1858 or their [sic] representative shall direct the referral of proposed subdivision layouts to 1859 such agencies as may be involved. Distribution may include the following: 1860 (1) The director of state division of highways. 1861 (2) Affected school districts. 1862 (3) City fire department. 1863 (4) Delaware Department of Health and Social Services, and Dover 1864 City Board of Health. 1865 (5) U.S. Postal Service cluster mailbox location. 1866 (6) Other agencies or jurisdictions involved. 1867 4. Prior to the review and action on the preliminary layout application, the 1868 commission shall hold a public hearing to be advertised by the applicant in a newspaper 73

1869 of general circulation at least ten days prior thereto. The applicant shall notify by mail all 1870 property owners within 200 feet of the extreme limits of the subdivision as their names 1871 appear on the municipal tax record at least ten days prior thereto. The applicant shall 1872 provide the commission with a copy of the notice, verification of newspaper publication, 1873 and post office return receipts for all letters on or before the meeting date. Said notices 1874 shall state the time and place of the hearing, a brief description of the subdivision and 1875 shall state that a copy of the subdivision application and plan is filed with the planning 1876 department [department of planning and inspections] for public review. 1877 5. The commission shall, within 45 days from the date of the submission of the 1878 preliminary layout or within such additional time as may be consented to by the 1879 applicant, act on said layout as submitted or modified, and, within five days, shall notify 1880 the subdivider in writing of its decision, and state the conditions of approval if any, the 1881 suggested modification if any, or the reason for disapproval of the layout. Approval of the 1882 preliminary layout by the commission shall be expressed as conditional approval. 1883 6. Any condition required by the city planner shall be noted on the original and 1884 a print of the preliminary layout. The chairman of the planning commission and the city 1885 planner shall sign the original and print as approved by the city planner. The print shall 1886 be retained by the city planner and the original shall be returned to the subdivider, who 1887 shall deliver two prints of the signed original to the city planner. 1888 7. Conditional approval of the preliminary layout shall not constitute approval 1889 of any subsequent plat, rather it is an expression of approval of the general design 1890 submitted to be used as a guide to the preparation of the plan to be submitted to the 1891 commission for its approval. For the protection of the subdivider, it is stressed that the 1892 commission's approval of the preliminary layout shall be secured before undertaking of 1893 final surveys of streets and lots and final construction plans, and that the start of any 1894 grading or street construction work must await approval by the commission of the plat 74

1895 and of a grading plan. However, in the case of minor subdivisions, approval of the 1896 preliminary layout shall be equivalent to final approval and the subdivider shall follow 1897 procedures set forth in paragraphs [section] C.7., C.8. and C.9. of this article. 1898 (Ord. of 6-24-1991; Ord. of 10-13-1992; Ord. of 4-25-1994; Ord. of 1-10-1996; Ord. of 7-12-2004(2)) 1899 1900 BE IT FURTHER ORDAINED THAT: 1901 Appendix A – Preliminary Layout, Article IV – Subdivision - Procedures, be amended by 1902 inserting the blue text and deleting the text in red strikeout, as follows: 1903 Section C. Plat. 1904 1. The plat shall conform substantially to the preliminary layout approved by 1905 the commission and, if desired by the subdivider, it may constitute only that portion of 1906 the approved preliminary layout which he proposes to record and develop at the time, 1907 provided that said portion conforms to all requirements of these regulations. 1908 2. The plat and other documents as specified in article V shall be prepared by 1909 the subdivider in accordance with the general requirements and design standards 1910 specified in article VI, and shall be submitted to the city planner sub