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REGULAR COUNCIL MEETING AGENDA June 13, 2005 - 7:30 P.M. - Council Chambers - City Hall - City of Dover OPEN FORUM - 15 MINUTES PRIOR TO OFFICIAL MEETING (7:15 P.M.) INVOCATION BY CHAPLAIN WALLACE DIXON PLEDGE OF ALLEGIANCE AGENDA ADDITIONS/DELETIONS * CONSENT AGENDA Those items on the Council Agenda which are considered routine and non-controversial shall be marked with an asterisk (*) and will be acted upon by a single roll call vote of the Council. There will be no separate discussion of these items unless a member of Council so requests, in which event the matter shall be removed from the Consent Agenda and considered a separate item. * 1. Adoption of Minutes A. Special Council Meeting of May 17, 2005 B. Regular Council Meeting of May 23, 2005 2. Certificate of Recognition - Central Middle School Odyssey of the Mind - World Finals - First Place - Stunt Mobiles - Division II 3. Public Hearing/Proposed Resolution - Approval of Issuance of Bonds or Notes by the Robbins Hose Fire Company 4. Public Hearing - 2005/2006 City of Dover Budget 5. Special Council Meeting of May 11, 12, 18 and 19, 2005 (Council Budget Hearings Report) A. Setting of Property Tax Rate for Fiscal Year 2005/2006 (See Item #12A) B. Budget Ordinances - Proposed 2005/2006 (See Items #12B-1 - #12B-22) 6. Property Assessment Appeals Report/Public Hearings * 7. Utility Committee Report - May 23, 2005 A. Puncheon Run Pumping Station Upgrades and Bond Resolution Amending the Projects Funded by the 2003 Bond Issue B. Time and Material Contract - George & Lynch, Inc. * 8. Safety Advisory and Transportation Committee Report - May 24, 2005 A. Consideration of Proposed Ordinance Amendment - Chapter 13, Motor Vehicles and Traffic - Section 13-30.2, Vehicle Parking Limited Where Carrying Capacity is in Excess of One Ton, and Trailer and Motor Home Parking (committee deferred action)

Council Agenda June 13, 2005 Page 2 9. Legislative, Finance, and Administration Committee Report - June 13, 2005 (except for the following tim e sensitive issues, the LF&A Com m ittee Report from June 13, 2005 will be presented to Council during their Regular Meeting of June 27, 2005 for Council’s review and consideration) A. Downtown Dover BID - Assessment (Tax) Rate for Fiscal Year 2005-2006 (See Item #12C) B. Adoption of Recodification Ordinance (See Item #12D) * 10. Mayor’s Monthly Report - April 2005 * 11. Appointments by Mayor Speed - Silver Lake Commission (Annual Appointments; Terms to Expire 5/2006) A. David Edgell B. Robert Gorkin C. Dean Holden D. Gordon Massey 12. First Reading - Proposed Ordinances The First Reading is offered on the following proposed ordinances. Final action by Council will take place during the Second Reading of the ordinances on June 27, 2005. Copies of all proposed ordinances are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. A. Notification of Tax Rate Increase Over the Rolled Back Tax Rate [Required in accordance with 22 Delaware Code Section 1105(b)] B. Budget Ordinances - 2004/2005 Revised and 2005/2006 City of Dover Budget b-1. General Fund - Cash Receipts and Budget b-2. General Capital Asset Replacement Fund - Cash Receipts/Revenue and Budget b-3. General Fund Contingency - Cash Receipts/Revenue and Budget b-4. Municipal Street Aid Fund - Cash Receipts/Revenue and Budget b-5. Delaware Prevention Network - Cash Receipts/Revenue and Budget b-6. Weed and Seed Fund - Cash Receipts/Revenue and Budget b-7. Water/Wastewater Fund - Revenue and Budget b-8. Water/Wastewater Improvement/Extension Fund - Cash Receipts/Revenue and Budget b-9. Water/Wastewater Capital Asset Reserve Fund - Cash Receipts/Revenue and Budget b-10. Water/Wastewater Contingency Fund - Cash Receipts/Revenue and Budget b-11. Electric Revenue Fund - Revenue and Budget b-12. Electric Utility Improvement and Extension Fund - Cash Receipts/Revenue and Budget b-13. Electric Utility Contingency Fund - Cash Receipts/Revenue and Budget b-14. Electric Utility Depreciation Reserve - Sources and Uses of Funds b-15. Electric Utility Future Capacity (Restricted) Fund - Sources and Uses b-16. Electric Utility Insurance Stabilization Fund - Sources and Uses b-17. Electric Utility Rate Stabilization Fund - Sources and Uses of Funds b-18. Workers Compensation Fund - Cash Receipts/Revenue and Budget b-19. Transportation Enhancement Grant Fund - Cash Receipts/Revenue and Budget b-20. Community Transportation Improvement Fund - Cash Receipts/Revenue and Budget b-21. Post-Retirement Benefit Reserve Fund - Cash Receipts/Revenue and Budget b-22. P.F.P. Salary Calculations Worksheet (Non-Bargaining Employees) C. Downtown Dover Business Improvement District - Cash Receipts/Budget FY 2005-2006 D. Recodification Ordinance - City of Dover Code of Ordinances (Items A & B - Council Budget Hearings; Items C & D - Legislative, Finance, and Administration Committee) 13. Council Members Comments /jg S:\ClerksOffice\Agendas&Minutes\Council-Agendas\2005\06-13-2005.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.

SPECIAL COUNCIL MEETING A Special Council Meeting was held on May 17, 2005 at 7:00 p.m. with Council President Williams presiding. Council members present were Mr. Carey, Mr. Pitts, Mr. Sadusky, Mr. Ritter, Mr. Hogan, Mr. Salters, and Mr. Ruane. Council staff members present were Mr. DePrima, Mr. Galvin, Mrs. Green, and Mr. Rodriguez. The invocation was given by Councilman Salters, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. Carey moved for approval of the agenda, seconded by Mr. Salters and unanimously carried. PUBLIC HEARING/FINAL READING - COMPREHENSIVE REZONING PROJECT 2005 A public hearing was duly advertised for this time and place to consider a series of Plan Amendments to the Comprehensive Plan Update 2003, which includes a Comprehensive Rezoning Project 2005. Members were reminded that in September 2003, City Council adopted the Comprehensive Plan Update 2003, The Dover Plan: From the People - For the People, which has been certified by the State of Delaware. Planner's Review Mr. Galvin, Director of Planning and Inspections, along with Ms. Melson and Mr. Sherman, reviewed the Comprehensive Rezoning Proposal and a summary table listing properties proposed for rezoning, staff’s recommendations and the recommendations of the Planning Commission (Exhibit #1). Mr. Galvin explained that staff of the Department of Planning and Inspections made original proposals for 27 areas that included 97 parcels. Four (4) areas, which included six (6) parcels, were changed based on the input during the public workshops and individual interviews. The Planning Commission reviewed and approved the amended recommendations of staff for all areas except those in the Wyoming Avenue, South Governors Avenue, and South Bradford Street areas. It was noted that a petition had been submitted to the City Clerk in opposition to the rezoning of property located at 975 and 979 S. Governors Avenue; 101, 113, 117, and 141 Wyoming Avenue; and 1090 S. Bradford Street. The petition has been reviewed by the City Assessor’s Office and it has been determined that since more than 20% of the permitted area protested, the approval of an amendment will require a three-fourths (3/4) vote of Council. Public Hearing Council President Williams declared the hearing open. Dr. Joel Halpern, 885 S. Governors Avenue, clarified that he did not initiate the proposed rezoning of properties located on Governors Avenue and Bradford Street. He advised members that there is a problem with parking, as well as exiting properties on Governors Avenue. It was his feeling that there has been a lack of communication on the part of the City. Dr. Halpern stated that he will support the desire of his neighbors in keeping the area zoned residential, with the hope that the City will assist with resolving parking problems along Governors Avenue.

SPECIAL CITY COUNCIL MEETING OF MAY 17, 2005 PAGE 2 Mr. Bill Dannenhauer, Master of Capitol Grange 18 located at 911 S. Governors Avenue, reviewed with members the function of the Grange, which is one of the oldest organizations in the community. The Grange provides support for the community and families, and their facility is used for a variety of reasons such as training sessions and is used by organizations such as Alcoholics Anonymous. The Grange objects to the property being zoned commercial, noting that if a disaster were to occur, the facility would have to be built to conform to the commercial zoning. For area 21, Mr. Dannenhauer requested that members maintain the current zoning classification. Mr. Tom Whittendale, 968 S. Governors Avenue, stated that he has been a property owner since 1975. He was initially concerned with the proposed rezoning of the property along Governors Avenue, as recommended by staff. He relayed support for the Planning Commission’s recommendation for area 21 and 19 to remain residential. Mr. Gary Patterson, President of the Downtown Dover Development Corporation, spoke in favor of the Planning Commission’s recommendation relative to areas 18 (to an I/O zoning) and 29 (to a C-3 zoning). It was his feeling that the IO rezoning classification represents the future desires of the City Council and will assist the Downtown Dover Development Corporation in meeting these desires. Mrs. Greta Whittendale, 968 Governors Avenue, stated that she represents the neighborhood association for area 21, as well as the petition signers. The residents of S. Governors Avenue and S. Bradford Street are appreciative of the Planning Commission’s recommendation to maintain the residential zoning classifications of R-8 for area 21 and R-15 for area 19 and requested that members of Council support this action. Mr. Justin Yelverton, 15 Park Lane, spoke in opposition to the rezoning of property located on Railroad Avenue (area 18). He explained that the rezoning from C-3 to I/O would limit his ability to utilize his property for business purposes. He stated that the Downtown Dover Development Corporation has no immediate plan for use of the property and requested that members should not cater to their desires. It was his feeling that the I/O zoning classification is not conducive to the area and requested that members deny the rezoning of the property. Mr. Wendell Scott, owner of an auto repair shop at 604 Forrest Street, stated that he purchased the property in October 2004. If he knew that it was possible for the property to be rezoned, he would not have made the purchase. The rezoning of the property would limit his ability to enhance the use of the property, would limit those that the property could be sold to, etc. He made improvements to the building and the area and wishes to continue to make such improvements. Mr. Scott requested that members deny the rezoning of the property. Mr. Wilford Yelverton, 222 Railroad Avenue, spoke in opposition to the rezoning. Although he has been in business at this location for more than 15 years, no one from the City has approached him to discuss the possible rezoning. Improvements are being made to the area and it was his feeling that the City is attempting to put these businesses out of business. It was his feeling that the area is not ready for a zoning classification of I/O and requested that members deny the rezoning of the property at this time.

SPECIAL CITY COUNCIL MEETING OF MAY 17, 2005 PAGE 3 There being no one else wishing to speak, Council President Williams declared the hearing closed. Mr. Ruane moved for approval of the Comprehensive Rezoning Project 2005, as recommended by the Planning Commission (including area 29 as recommended by staff for a C-2 zoning classification), extracting area 18 for further review and discussion (Exhibit #1). The motion was seconded by Mr. Carey and carried by a unanimous roll call vote. Responding to Mr. Hogan, Mr. Galvin explained non-conforming use of buildings and indicated that modifications to structures would not be permitted nor would repairs be permitted if the structure was severely damaged as a result of fire or some other type of disaster. Mr. Salters indicated his support for the future use of area 18 as an office complex; however, relayed concern with diminishing the use of property by current owners. Mr. Galvin noted that properties E and I in area 18 are owned by the Downtown Dover Development Corporation. Mr. Scott and Mr. Yelverton were requested to provide members further explanation of their anticipation for use of the property. Members were advised that the C-3 zoning classification provides them with the opportunity to make improvements to the property and that the I/O zoning classification would hinder these desires. Mr. Salters moved for approval of the rezoning of area 18 to I/O, as recommended by the Planning Commission, except for property 18D and 18F, which should remain a C-3 zoning classification. The motion was seconded by Mr. Carey and by a unanimous roll call vote, Council adopted the following ordinance (the First Reading of this ordinance was accomplished during the Council Meeting of March 28, 2005): AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING ZONING DESIGNATIONS TO CONFORM WITH THE COMPREHENSIVE PLAN UPDATE 2003. WHEREAS, the City of Dover has enacted a zoning ordinance regulating the use of property within the limits of the City of Dover; and WHEREAS, Delaware Code, Title 22, Chapter 3 Municipal Zoning Regulations, Section 303, Purpose of Regulations, states that zoning regulations shall be made in accordance with a Comprehensive Plan and designed to lessen congestion in the streets, to secure safety from fire, panic and other dangers, to provide health, general welfare, adequate light and air, to prevent the overcrowding of land, to avoid undue concentration of population, and to facilitate the adequate provision of transportation, water, sewage, schools, parks, and other public requirements; and WHEREAS, Delaware Code, Title 22, Chapter 7 Planning Commission, Section 702 (c) Comprehensive Development Plan, states that the Comprehensive Plan shall be the basis for the development of zoning regulations and that upon adoption of the Comprehensive Development Plan, the official zoning map shall be amended to rezone all lands within the municipality in accordance with the uses of land provided for in the Comprehensive Development Plan; and

SPECIAL CITY COUNCIL MEETING OF MAY 17, 2005 PAGE 4 WHEREAS, the City of Dover adopted The Dover Plan: 2003 Comprehensive Plan Update “From the People – For the People 2003-2008” on September 22, 2003; and WHEREAS, the City of Dover has prepared a Comprehensive Rezoning Map 2005 showing recommendations to change zones for an identified series of properties so that the City of Dover Zoning Map is in accordance with the adopted 2003 Comprehensive Plan Update. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. That from and after the passage and approval of this ordinance the Zoning Map and Zoning Ordinance of the City of Dover is amended by changing the zoning designations of specific properties to conform with the Zoning Map changes presented to City Council on May 17, 2005 as depicted on the map and summary table entitled “City of Dover Comprehensive Rezoning Project 2005.” ADOPTED: MAY 17, 2005 As stated by Mr. Carey, all members agreed that the comprehensive rezoning of property should not create a hardship on long-term businesses; therefore, members disapproved the Planning Commission’s recommendation to rezone property 18D and 18F from C-3 to I/O. Council President Williams declared a recess at 8:32 p.m.; the meeting reconvened at 8:40 p.m. COMPREHENSIVE PLAN AMENDMENTS During their Regular Meeting of March 28, 2005, Council set a public hearing for this time and place to consider approval of Comprehensive Plan Amendments, as follows: Land Development Plan Revisions (Map 11-1 and Chapter 11); Annexation Plan Revisions (Map 12-1 and Chapter 12); and Implementation Plan Revisions (Chapter 14). In September 2003, City Council adopted the Comprehensive Plan Update 2003, The Dover Plan: From the People - For the People, which has been certified by the State of Delaware. Members were provided detailed information (as on file in the Office of the City Clerk) and the Planning Department staff gave a brief presentation regarding the proposed Land Development Plan Revisions, Annexation Plan Revisions, and Implementation Plan Revisions, as follows: Land Development Plan Revisions (Map 11-1 and Chapter 11) Chapter 11: The Land Development Plan discusses the future land development and land uses for properties with the City. It includes the Land Development Plan Map (Map 11-1) which outlines the future development of land in the City be depicting a land use type category for each parcel of land. These land use categories include Residential, Mixed Use, Commercial, Institutional, Office Parks, Industrial, Open Space, Agriculture, etc. During the review process for the Comprehensive Rezoning Project 2005, items in the Land Development Plan were identified as needing to be addressed, which has resulted in recommended changes to the Land Development Plan Map. These changes occur for many reasons, including the following: the results of approved rezoning applications including minor variations, perceived mapping errors, the ability for zoning classifications to comply in multiple land use type categories, updated data in specific areas, and planning visions for specific areas. Members were provided the recommended changes as depicted on a map and listed in a summary table.

SPECIAL CITY COUNCIL MEETING OF MAY 17, 2005 PAGE 5 Mr. Ritter relayed concern with the State arbitrarily designating property as Agriculture Preservation that is located in the City limits. He requested that staff investigate the process that would require the State to notify the City of Dover of their intentions to designate property as Agriculture Preservation prior to doing so. Council President Williams declared the public hearing open. There being no one present wishing to speak, Council President Williams declared the public hearing was closed. Mr. Hogan moved for adoption of the Planning Commission’s recommendation (Exhibit #2). The motion was seconded by Mr. Salters and by a unanimous roll call vote, Council adopted the following Resolution: A RESOLUTION AMENDING THE 2003 COMPREHENSIVE PLAN UPDATE BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: WHEREAS, the Planning Commission of the City of Dover, on September 16, 2003 adopted the 2003 Comprehensive Plan Update; and WHEREAS, the City Council of the City of Dover, on September 22, 2003, adopted the 2003 Comprehensive Plan Update pursuant to Title 22, Section 701 of the Delaware Code; and WHEREAS, the State of Delaware, on October 2, 2003, certified the 2003 Comprehensive Plan Update “From the People - For the People ‘2003 to 2008'”; and WHEREAS, the staff of the Department of Planning and Inspections and the Planning Commission have reviewed the 2003 Comprehensive Plan Update and recommend amendments to Chapter 11, Land Development Plan and Map 11-1. NOW, THEREFORE, BE IT RESOLVED THAT the Mayor and Council of the City of Dover hereby amend Chapter 11 Land Development Plan and Map 11-1 of the 2003 Comprehensive Plan Update, as amended. ADOPTED: MAY 17, 2005 Annexation Plan Revisions (Map 12-1 and Chapter 12) Chapter 12: The Annexation Plan as approved in the adopted Comprehensive Plan Update 2003 anticipated an amendment to include the results of the Cost/Revenue Analysis Study for the potential annexation parcels and any changes to the Plan based on the results. The consultants hired by the City developed a methodology for assessing the costs and revenues for a series of properties depicted on the Annexation Plan Map. The revisions to the Annexation Plan will describe the Cost/Revenue Analysis Study project and its results. A narrative will also provide guidance as to the items to be considered during the Annexation review process. The Annexation Plan Map also currently places lands into categories, as follows: Category 1: Lands Identified for Annexation;

SPECIAL CITY COUNCIL MEETING OF MAY 17, 2005 PAGE 6 Category 2: Lands Desirable for Annexation; and Category 3: Lands to be Evaluated for Annexation and Areas of Concern. In addition, a potential land use type is identified for lands in Category 1 and Category 2. The Amendment proposes re-categorization of potential annexation areas and revisions to the potential land use designation for identified annexation areas. The Planning Commission recommended approval of the Annexation Plan Revisions (Chapter 12 and Map 12-1) including the items identified during the presentation and discussion. It was noted that the revisions have been incorporated into the materials presented to Council. The items included clarification or wording, spelling changes, and labeling omissions on the map. Members discussed concerns with the concept of expanding City limits for properties south of Dover and felt that the expansion should reflect properties north and west of Dover. Mr. Hogan noted that the Annexation Plan Revisions may be protecting the City from other jurisdictions. Council President Williams declared the public hearing open. There being no one present wishing to speak, Council President Williams declared the public hearing was closed. Mr. Hogan moved for adoption of the Annexation Plan Revisions (Map 12-1 and Chapter 12) and Planning Commission’s recommendation, with the understanding that staff be authorized to make the minor clarification amendments as suggested by the State. The motion was seconded by Mr. Carey and by a unanimous roll call vote, Council adopted the following Resolution: A RESOLUTION AMENDING THE 2003 COMPREHENSIVE PLAN UPDATE BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: WHEREAS, the Planning Commission of the City of Dover, on September 16, 2003 adopted the 2003 Comprehensive Plan Update; and WHEREAS, the City Council of the City of Dover, on September 22, 2003, adopted the 2003 Comprehensive Plan Update pursuant to Title 22, Section 701 of the Delaware Code; and WHEREAS, the State of Delaware, on October 2, 2003, certified the 2003 Comprehensive Plan Update “From the People - For the People ‘2003 to 2008'”; and WHEREAS, the staff of the Department of Planning and Inspections and the Planning Commission have reviewed the 2003 Comprehensive Plan Update and recommend amendments to Chapter 12, Annexation Plan and Map 12-1. NOW, THEREFORE, BE IT RESOLVED THAT the Mayor and Council of the City of Dover hereby amend Chapter 12 Annexation Plan and Map 12-1 of the 2003 Comprehensive Plan Update, as amended. ADOPTED: MAY 17, 2005

SPECIAL CITY COUNCIL MEETING OF MAY 17, 2005 PAGE 7 Implementation Plan Revisions (Chapter 14) Chapter 14: The Implementation Plan outlines the time frame (Phases I-IV) for actions to be completed to implement elements of the Comprehensive Plan Update 2003. These actions include project activities such as ordinance review and development, studies on specific topics, and special plans. It is recognized that some changes are necessary to the Implementation Plan to be able to achieve resolution to the projects identified. For some project activities, the amount of consultation and documentation may not allow the City and staff to bring them to fruition within the current time frame given. Other changes reflect recent initiatives by the City and other agencies, such as Kent County’s Transfer of Development Rights Program. For this Amendment, a narrative was provided reflecting the revisions to the time frame for project activities and the addition of project activities. Council President Williams declared the public hearing open. There being no one present wishing to speak, Council President Williams declared the public hearing closed. The Planning Commission recommended approval of the Implementation Plan Revisions (Chapter 14) as presented. Mr. Ruane moved for adoption of the Implementation Plan Revisions (Chapter 14) as recommended by the Planning Commission. The motion was seconded by Mr. Carey and by a unanimous roll call vote, Council adopted the following Resolution: A RESOLUTION AMENDING THE 2003 COMPREHENSIVE PLAN UPDATE BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: WHEREAS, the Planning Commission of the City of Dover, on September 16, 2003 adopted the 2003 Comprehensive Plan Update; and WHEREAS, the City Council of the City of Dover, on September 22, 2003, adopted the 2003 Comprehensive Plan Update pursuant to Title 22, Section 701 of the Delaware Code; and WHEREAS, the State of Delaware, on October 2, 2003, certified the 2003 Comprehensive Plan Update “From the People - For the People ‘2003 to 2008'”; and WHEREAS, the staff of the Department of Planning and Inspections and the Planning Commission have reviewed the 2003 Comprehensive Plan Update and recommend amendments to Chapter 14, Implementation Plan Revisions. NOW, THEREFORE, BE IT RESOLVED THAT the Mayor and Council of the City of Dover hereby amend Chapter 14 Implementation Plan of the 2003 Comprehensive Plan Update, as amended. ADOPTED: MAY 17, 2005

SPECIAL CITY COUNCIL MEETING OF MAY 17, 2005 PAGE 8 Mr. Ritter moved for adjournment, seconded by Mr. Carey and unanimously carried. Meeting Adjourned at 9:31 P.M. JANICE C. GREEN CITY CLERK All orders, ordinances, and resolutions adopted by City Council during their Special Meeting of May 17, 2005, are hereby approved. STEPHEN R. SPEED MAYOR /JG S:\ClerksOffice\Agendas&Minutes\Council-Minutes\2005\05-17-2005 Special-Council.wpd Exhibits Attached to Original Minutes and File Copy Exhibit #1 - Summary Table Comprehensive Rezoning Project 2005 Exhibit #2 - Summary Table Land Development Plan Revisions 2005

REGULAR COUNCIL MEETING The Regular Council Meeting was held on May 23, 2005 at 7:30 p.m. with Council President Williams presiding. Council members present were Mr. Carey, Mr. Pitts, Mr. Sadusky, Mr. Slavin, Mr. Ritter, Mr. Hogan, Mr. Salters, and Mr. Ruane. Council staff members present were Police Chief Horvath, Ms. Russell, Mrs. Mitchell, Mr. Galvin, Fire Chief Bashista, Mr. DePrima, City Solicitor Rodriguez, and Mrs. Green. OPEN FORUM The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Williams declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action. Mr. Lee Anders, 21 Elm Terrace, complimented the City on the appearance of Dover, indicating his feeling that it is one of the most beautiful Cities in the nation. Mr. Anders relayed his concern with the City applying fees for trash service, water, wastewater, etc. to generate revenue that should be collected through taxes. He felt that fees by-pass the equity of a property tax structure and ignore the laws of supply and demand. Mr. Anders requested that members of Council be honest about how they are keeping property taxes under control while distorting distribution costs to the citizens. He noted that when a fee is imposed or increased, no public hearings are necessary and that justification for a fee or its increase is minimum. By not including costs in the property tax structure, City Council avoids its accountability to the citizens. Mr. Robert Vincelletta (non-resident) relayed concern with an increasing problem with loud music from car stereos, which is occurring in the State of Delaware, as well as the nation. He advised members that Harrisburg, Pennsylvania recently adopted a law prohibiting such music from car stereos and allows for the stereos to be confiscated from the cars after the second arrest. Mr. Vincelletta felt that loud music from passing cars was a type of vandalism that should not be tolerated. Mr. Richard Snyder (Newark, Delaware) addressed members regarding an issue that affects the entire State of Delaware, although it is located in the City of Wilmington. He explained that there are over 500,000 tons of toxic waste distributed on the banks of the Delaware River by the DuPont Company. He advised members that New Castle County Council and many civic associations have recently passed a resolution requesting that DuPont be required to release the toxic waste in a manner approved for hazardous waste. Mr. Snyder stated that the Town of Smyrna and the City of Wilmington are in the process of developing a resolution and requested that the City of Dover consider the same. The invocation was given by Chaplain Dixon, followed by the Pledge of Allegiance. AGENDA ADDITIONS/DELETIONS Mr. Carey moved for approval of the agenda as presented, seconded by Mr. Salters and unanimously carried.

CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 2 Mr. Carey moved for approval of the consent agenda, seconded by Mr. Sadusky and carried by a unanimous roll call vote. ADOPTION OF MINUTES - ANNUAL COUNCIL MEETING OF MAY 9, 2005 The Minutes of the Annual Council Meeting of May 9, 2005 were unanimously approved by motion of Mr. Carey, seconded by Mr. Sadusky and bore the written approval of Mayor Speed. PRESENTATION OF HAND MADE QUILT BY MRS. ANN MARTIN TO INTER-CITY CULTURAL LEAGUE Mrs. Ann Martin presented a hand-made quilt to Mr. Salters in honor of his dedicated community service and for fostering African American Cultural and awareness. She noted that the quilt was to be used as a fund raiser for the Inter-City Cultural League to assist in the building of a facility. Mr. Salters, joined by the Sankofa Dancers and Drummers, accepted the quilt and explained that raffle tickets will be sold and the winner will be announced at the African American Festival on June 25, 2005. CERTIFICATE OF RECOGNITION - S. RENEE SMITH - MEMBER OF DDDC Council President Williams presented a Certificate of Recognition to Ms. S. Renee Smith in appreciation for her service as a member of the Downtown Dover Development Corporation, having served from May 28, 2002 through April 23, 2005. PRESENTATION - CITY OF DOVER SILVER MEDALS - MS. THERESA BLOCK AND MS. BECKY FURR Mrs. Green, City Clerk, read the following Resolution into the record: WHEREAS, on February 9, 2005 a near tragedy occurred when a young boy, Christian Poole, fell into an ice-covered pond approximately thirty-five feet from shore and was unable to free himself from the icy water; and WHEREAS, two citizens, Ms. Theresa Block and Ms. Becky Furr, attached a dog’s pull toy to the end of a rope and threw it to Christian Poole, pulling him safely to the shore and preventing his possible drowning in frigid water; and WHEREAS, the ingenuity and quick actions of these women were a significant factor in saving Christian Poole’s life and averting what could have been a tragic loss to family, friends, and community, which deserve special recognition by the governing body of this City. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. That the Mayor and Council recognize that Ms. Block and Ms. Furr showed exemplary conduct beneficial to the City and the community.

CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 3 2. In recognition of their actions, the Mayor and Council award Ms. Theresa Block and Ms. Becky Furr with City of Dover Silver Medals, and direct the City Clerk to make this Resolution a part of the permanent records of the City of Dover. ADOPTED: MAY 23, 2005 Council President Williams, along with Christian Poole, presented the Resolutions and Silver Medals to Ms. Block and Ms. Furr. CERTIFICATE OF RECOGNITION - DOVER LITTLE LEAGUE’S 50TH ANNIVERSARY Mrs. Green, City Clerk, read the following Certificate into the record: WHEREAS, in 1955 Edward R. Knight, Francis Lore and Robert Reed, Sr., established the Dover Little League and began playing at the Court Street Field; and WHEREAS, in 1992 the Dover Little League and the City of Dover entered into an agreement to transform the 22-acre Schutte Farm into a Little League Complex; and WHEREAS, today with the support of local businesses and the community more than 50 teams and 900 players play tee-ball, softball, baseball, soccer and a host of other sports at Schutte Park; and WHEREAS, throughout the years volunteers have given countless hours of service as administrators, coaches, umpires and cheerleaders; and WHEREAS, during the last 50 years the Dover Little League has provided a solid foundation for character growth, in addition to nurturing courage and loyalty in the youth of our community. NOW, THEREFORE, I, STEPHEN R. SPEED, MAYOR, OF THE CITY OF DOVER, DELAWARE, do hereby present this Certificate on this 23rd day of May 2005 to the Dover Little League in recognition of its 50th Anniversary and urge all citizens to acknowledge the outstanding contributions and the venerable commitment that has been made to children in our community. Council President Williams presented the Certificate to Mr. Glenn Wilhelm, Sr. Mr. Wilhelm thanked members for the recognition and relayed appreciation to Mr. Carter, Director of Parks and Recreation, and the City of Dover for their support. RECOGNITION OF ACCOMPLISHMENT - RODEO COMPETITION IN MEMPHIS TENNESSEE - CITY OF DOVER ELECTRIC DEPARTMENT EMPLOYEES Mr. Sax, Electric Director, provided a Power Point Presentation on the 5th Annual Lineman Rodeo held April 15-16, 2005, in Memphis, Tennessee, which is sponsored by the American Public Power Association. The Dover Electric Department participated in the event (Exhibit #1).

CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 4 PRESENTATION - DISTINGUISHED BUDGET PRESENTATION AWARD FOR FISCAL YEAR BEGINNING JULY 2004 (GFOA) The Distinguished Budget Presentation Award for Fiscal Year beginning July 2004, from Government Finance Officers Association, was awarded to the City of Dover. This award signifies the excellent manner in which the City prepares and presents its budget. Council President Williams presented the award to Mr. DePrima, City Manager, and Mrs. Tieman, Director of Administrative Services. Noting that this is the 16th time the City has received this award, she commended the budget team for their efforts. Mr. DePrima relayed appreciation to members of Council and the budget team (Mrs. Tieman, Mrs. Mitchell, Finance Director/Treasurer, and Mr. Howey, Assistant Finance Director/Treasurer) who played a major role in the preparation of the document. He also thanked staff for their diligent work and cooperative efforts. Mrs. Tieman advised members that the City of Dover is one (1) of only three (3) entities, Kent County and New Castle County, in the State of Delaware that has received such an award. PUBLIC HEARING/FINAL READING - REZONING OF PROPERTY LOCATED ON THE EAST SIDE OF BAY ROAD (INTERSECTION OF ROUTE 113 AND PUNCHEON RUN CONNECTOR), OWNED BY DELAWARE INDUSTRIAL ENTERPRISES A public hearing was duly advertised for this time and place to consider rezoning of property located on the east side of Bay Road (intersection of Route 113 and Puncheon Run Connector), consisting of 38.12 acres. The property is owned by Delaware Industrial Enterprises (equitable owner is Stover Homes, Inc.). The property is currently zoned C-4 (Highway Commercial) for 3.80+/- acres and IPM (Industrial Park Manufacturing) for 34.32+/- acres and the proposed zoning is C-4 (Highway Commercial) for 5.30+/- acres and IPM (Industrial Park Manufacturing) for 32.82+/- acres. Planner's Review Mr. Galvin, Director of Planning and Inspections, reviewed the petition to amend the zoning district and the findings and recommendations of the Planning Commission (Exhibit #2). The Planning Commission recommended approval of the request to rezone a 1.5022 acre portion of an existing 38.12 acre parcel of land from IPM to C-4. With this rezoning the property will consist of 5.30 acres zoned C-4 and 32.82 acres zoned IPM. The property is also subject to the AEOZ (Airport Environs Overlay Zone). Public Hearing Council President Williams declared the hearing open. There being no one present wishing to speak, Council President Williams declared the hearing closed. Mr. Hogan moved for approval of the rezoning request, as recommended by the Planning Commission. The motion was seconded by Mr. Carey and by a unanimous roll call vote, Council adopted the following ordinance: (The First Reading of this ordinance was accomplished during the Council Meeting of March 28, 2005.)

CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 5 AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED ON THE EAST SIDE OF BAY ROAD (INTERSECTION OF ROUTE 113 AND PUNCHEON RUN CONNECTOR), CONSISTING OF 38.12 ACRES WHEREAS, the City of Dover has enacted a zoning ordinance regulating the use of property within the limits of the City of Dover; and WHEREAS, it is deemed in the best interest of zoning and planning to change the permitted use of property described below from C-4 (Highway Commercial) for 3.80+/- acres and IPM (Industrial Park Manufacturing) for 34.32+/- acres to C-4 (Highway Commercial) for 5.30+/- acres and IPM (Industrial Park Manufacturing) for 32.82+/- acres. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. That from and after the passage and approval of this ordinance the Zoning Map and Zoning Ordinance of the City of Dover have been amended by changing the zoning designation from C-4 (3.80+/- acres) and IPM (34.32+/- acres) to C-4 (5.30+/- acres) and IPM (32.82+/- acres) on that property located at on the east side of Bay Road (Intersection of Route 113 and Puncheon Run Connector), owned by Delaware Industrial Enterprises ADOPTED: MAY 23, 2005 SET PUBLIC HEARING - ELECTRIC FUND BUDGET A public hearing on the Electric Revenue Fund Budget is required for compliance with the 1985 Electric Revenue (Refunding) Bonds Resolution - Annual Budget Section (as amended by 1990 Bond Resolution) prior to adoption of the budget. Staff recommended that the public hearing be set for June 13, 2005 at 7:30 p.m. Mr. Salters moved to set a public hearing for June 13, 2005 at 7:30 p.m. for the 2005/2006 City of Dover Electric Fund Budget, seconded by Mr. Sadusky and unanimously carried. COUNCIL APPOINTMENT - CONSTRUCTION CODE BOARD OF APPEALS (RECOMMENDATION BY COUNCIL PRESIDENT WILLIAMS) Council President Williams recommended the appointment of Mr. Sadusky to the Construction Code Board of Appeals. By consent agenda, Mr. Carey moved for approval of the appointment, as recommended by Council President Williams, seconded by Mr. Sadusky and unanimously carried. APPOINTMENT OF CITY CHAPLAIN - RECOMMENDATION BY COUNCIL PRESIDENT WILLIAMS Council President Williams recommended the appointment of Chaplain Wallace Dixon to serve as City Chaplain through June 2006.

CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 6 By consent agenda, Mr. Carey moved for approval of the appointment, as recommended by Council President Williams, seconded by Mr. Sadusky and unanimously carried. MONTHLY REPORTS - APRIL 2005 By motion of Mr. Carey, seconded by Mr. Sadusky, the following monthly reports were accepted by consent agenda: Budget Report Chief of Police Report City Clerk/Alderman Report (Fines) City Manager's Report Planning and Inspections Report Robbins Hose Company No. 1 Report BID - REPLACEMENT OF THE HVAC UNIT AT DOVER PARKS AND RECREATION BUILDING Members reviewed bids received for a new HVAC unit required for the Parks and Recreation building on Whiteoak Road. The current unit has exceeded its life span, is broken, and cannot be repaired due to the scarcity of parts needed to maintain the unit. Staff recommended issuing a purchase order to J. Grilli in the amount of $35,596. Mr. Carey moved for approval of staff’s recommendation, seconded by Mr. Salters and carried by a unanimous roll call vote. BID - MAXIMIZING DOVER’S CONNECTIVITY INFRASTRUCTURE In June 2004, the City’s Information Technology Long Range Plan recommended that the City investigate leveraging its fiber optic network. It also recommended that Dover leverage that network to deploy a Citywide voiceover Internet provider telephone system and use of wireless which is not now available. During their Regular Meeting of March 28, 2005, City Council approved the issuance of an RFP for a Telecommunications Infrastructure Needs Assessment Strategic Plan, Voiceover Internet Protocol, and Franchise Fee Review. Staff provided members with a summary of the eight (8) responses received to the RFP and details regarding each of the proposals. The proposals were reviewed by the Administrative Services Director and Electric Director. The second lowest bid was received from Virchow, Krause & Company in the amount of $55,145, as follows: 1) Citywide Vision - $8,000; 2) Connectivity Needs Assessment - $24,500; VoIP - $12,650; and Franchise Fee Review - $9,995. Staff did not recommend the low bidder, TelNet, due to their level of experience in fiber optics and cable contracts. Staff recommended that the City Manager be authorized to retain Virchow, Krause & Company to provide a Telecommunications Infrastructure Needs Assessment and Strategic Plan, Voiceover Internet Protocol RFP Development and Design, and Franchise Fee Review. Mr. Carey moved for approval of staff’s recommendation, seconded by Mr. Sadusky and carried by a unanimous roll call vote.

CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 7 BID - BANKING AND CASH MANAGEMENT SERVICES Members were provided detailed information, including evaluation scores, on the proposals received for banking services. The proposals were reviewed and evaluated by the Finance and Administrative Services Department personnel. The proposals were scored on content, service, technology, and experience. Staff also calculated interest income net of bank fees for each bank using the bank’s actual rates for January 2004 through December 2004 on the last 12 months actual cash balances and an average daily balance of $7,500,000. Based on each bank’s Uniform Bank Performance Report, staff calculated capital and net worth ratios to measure each bank’s solvency. Staff recommended awarding the City’s banking services to Citizens Bank. Mr. Carey moved for approval of staff’s recommendation, seconded by Mr. Pitts and carried by a unanimous roll call vote. PROPOSED RESOLUTION - ESTABLISHMENT OF 2005 CHARTER REVIEW COMMITTEE Council President Williams stated that during the recent Council Retreat, members established a priority to conduct a review of the City Charter and that it was determined that a Blue Ribbon Panel should be appointed to conduct the review. Mr. Hogan moved for the establishment of the 2005 Charter Review Committee. The motion was seconded by Mr. Slavin and by a unanimous roll call vote, Council adopted the following Resolution: WHEREAS, the City of Dover Charter was developed and incorporated in 1929 by the State of Delaware, and given all powers and functions requisite or appropriate for the government of the City, its peace and order, its sanitation, appearance and beauty, the health, safety convenience, comfort and well-being of its population, and the protection and preservation of property, public and private; and WHEREAS, in the interest of progressive government, it is the opinion of the Mayor and Council that a total review of the Charter is necessary and that strong leadership and guidance is required to ensure that sound and credible recommendations for charter revisions are developed; and WHEREAS, recognizing it is imperative that recommendations for Charter revisions must be objective and well-reasoned by a membership of broad experience and wisdom, it is the desire of the Mayor and Council that a Blue Ribbon Committee be appointed for reviewing the City Charter. NOW, THEREFORE, BE IT RESOLVED THAT THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET, HEREBY FORMALLY ESTABLISHES A 2005 CHARTER REVIEW COMMITTEE, WHICH SHALL: 1. Serve as an ad-hoc committee to consist of six (6) to nine (9) members appointed by the Council President, with recommendations provided by Council. The Council President will designate the Chairman, who shall be responsible for organizing and calling meetings as needed.

CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 8 2. Have the objective of studying the City Charter and submit recommendations to the Mayor and Council relative to proposed changes in the form of government, election process, terms of office, and other amendments deemed necessary to assure the continued orderly growth and efficient management of the City. 3. Conduct meetings in a public forum format to allow for input from our citizenry, require at least one public meeting to be held in each of the four council districts, and seek the expertise of the State, City, local universities and colleges, and any others deemed necessary in the development and formulating recommendations. 4. Submit a preliminary report to the Mayor and Council within six (6) months, with a final report, including recommendations, to be submitted within twelve (12) months of organizing. ADOPTED: MAY 23, 2005 REZONING REQUEST/FIRST READING - 834 W. NORTH STREET, OWNED BY EDEN HILL FARM, INC. AND THE STATE OF DELAWARE A request was received to rezone property located at 834 W. North Street, owned by Eden Hill Farm, Inc. and the State of Delaware (equitable owners: Investment Properties Associates, L.L.C. and Dover Medical Properties, L.L.C.). The property is currently zoned IPM (Industrial Park Manufacturing) and A (Agriculture) and the requested zoning is TND (Traditional Neighborhood Design). Prior to amending the zoning ordinances and zoning map of the City of Dover, a public hearing is required. By motion of Mr. Salters, seconded by Mr. Hogan, Council unanimously referred the request to the Planning Commission for June 20, 2005 and set a public hearing for July 11, 2005 at 7:30 p.m. In accordance with Section 1-6 of the Dover Code, Council acknowledged the First Reading of the Rezoning Ordinance as read by the City Clerk, by title only, as follows: AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 834 W. NORTH STREET. FINAL READING - PROPOSED ORDINANCE The First Reading of the following proposed ordinance was accomplished during the Council Meeting of May 9, 2005. Chapter 19.5 - Taxation, Section 19.5-52 - Tax Exemption for Senior Citizens Mr. Ritter moved that the Final Reading of the proposed ordinance be acknowledged by title only, seconded by Mr. Salters and unanimously carried. Mr. Slavin submitted a memo requesting Council consideration of lowering the eligibility age for the senior tax exemption to either 62 or, ideally 60, and provided the following reasons for his request: 1) Many of our seniors are forced to retire before the age of 65; 2) many career military

CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 9 veterans retire from their careers before the age of 65; 3) fixed-income seniors need relief; and 4) the City has recently seen the development of numerous 55-and-older communities, and has invited these developments into our community. Mr. Ritter moved for approval of the amendment to Section 19.5-52, Tax Exemption for Senior Citizens, with a modification to Subsection (b) and Paragraph (b)(7) by striking “65" and inserting in lieu thereof “60". The motion was seconded by Mr. Slavin and by a unanimous roll call vote, Council adopted the following ordinance: BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That Section 19.5-52 - Tax exemption for senior citizens, be amended by deleting Subsection (b), and Paragraphs (b)(1), (b)(2), and (b)(7), in their entirety and replacing in lieu thereof, and inserting a new Paragraph (b)(14), as follows: (b) The exemption shall be for real property owners sixty (60) years of age or over. If qualified, their real property shall be exempt from municipal taxation to the extent of the first fifty thousand dollars ($50,000) of assessed valuation. This exemption shall be subject to the following qualifications: (1) If the income of a property owner who resides alone exceeds the sum of fifteen thousand dollars ($15,000) for the income tax year immediately preceding the date of making an application for the exemption, then the exemption shall not be granted. (2) If the income of a property owner and spouse who reside together exceeds the sum of twenty-one thousand dollars ($21,000) for the income tax year immediately preceding the date of making an application for the exemption, then the exemption shall not be granted. (7) The property owner must have attained the age of sixty (60) by March 1 of the year in which the exemption application is filed. (14) City Council will review these numbers at the conclusion of each reassessment. ADOPTED: MAY 23, 2005 COUNCIL MEMBERS COMMENTS Mr. Ritter thanked members of Council for being responsive to the recommendations he made during the April 11, 2005 Council Meeting, when he indicated how critical it is for the City to increase the reduction for our senior citizens because of the new tax assessment.

CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 10 Mr. Carey reminded members that an extension has been granted for submitting applications for the tax exemption for senior citizens through May 31, 2005. Mr. Salters announced that the African American Festival will be held on June 25, 2005 and invited all to attend. Mr. Slavin moved for adjournment, seconded by Mr. Carey and unanimously carried. Meeting Adjourned at 8:15 P.M. JANICE C. GREEN CITY CLERK All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of May 23, 2005, are hereby approved. STEPHEN R. SPEED MAYOR /JG S:\ClerksOffice\Agendas&Minutes\Council-Minutes\2005\05-23-2005 Council.wpd Exhibits Attached to Original Minutes and File Copy Exhibit #1 - Presentation 5 th Annual Public Power Lineworkers’ Rodeo Exhibit #2 - Planning Commission Report on Rezoning of Property located on the East Side of Bay Road

WHEREAS, Odyssey of the Mind is an international educational program which teaches students to learn creative problem-solving methods by providing open-ended problems that appeal to a wide range of interests. Students learn how to identify challenges and to think “outside of the box” to solve those problems while being free to express their ideas and suggestions without fear of criticism; and WHEREAS, having been successful at the State’s Odyssey of the Mind Competition, Dover’s Central Middle School team advanced to the World Odyssey of the Mind Competition, which attracted 765 teams from around the world, including students from Belarus, China, Czech Republic, Germany, Hungary, Japan, Russia, Singapore, Slovakia and practically every state in the U.S.; and WHEREAS, this team of students from Dover's Central Middle School is the first team from Delaware to win the Odyssey of the Mind World Finals, a prestigious annual world competition, and special commendation is due all team members, the coach, and the parents for their hard work and dedication; and WHEREAS, it is deemed an honor and privilege to present this Certificate of Recognition as follows: COOPER ASAY APRIL CHESTNUT ANDREW DAVIS GINA DEFRANCESCO JESSIE GIRGIS HANNAH LINDSEY ERIK TOWNE TRUDEAN DAVIS (TEAM COACH) FIRST PLACE - DIVISION II - STUNT MOBILES 2005 ODYSSEY OF THE MIND WORLD COMPETITION Congratulations from the City of Dover June 2005 STEPHEN R. SPEED BEVERLY C. WILLIAMS MAYOR COUNCIL PRESIDENT

RESOLUTION APPROVING ISSUANCE OF CERTAIN BONDS OR NOTES BY THE ROBBINS HOSE COMPANY NO. 1 OF DOVER, DELAWARE WHEREAS, the Robbins Hose Company No. 1 of Dover, Delaware (the "Company") is a fire company organized and existing under the laws of the State of Delaware; and WHEREAS, the Company has provided and continues to provide firefighting services to an area within the City of Dover, Delaware (the "City"); and WHEREAS, the Company has advised the City that the Company proposes to issue up to $ 5,300,000 of bonds or notes of the Company (the "Bonds") for the purposes of financing: (1) up to $4,550,000 of the costs of the demolition, construction and reconstruction of a 12,900± square foot addition to the existing fire station buildings and related site improvements on 1.14± acres of land located at 103 South Governors Avenue, Dover DE 19904, including professional fees and costs of issuance incurred in connection therewith, and (2) up to $750,000 of the costs of a new, "100” Tower Ladder fire truck complete with all necessary equipment", including the professional fees and costs of issuance incurred in connection therewith (collectively, the "Project”); and WHEREAS, it is the intent of the Company that the interest on the Bonds qualify for exclusion from gross income of the owners thereof for federal income tax purposes pursuant to Sections 103 and 150 of the Internal Revenue Code of 1986, as amended (the "Code"); and WHEREAS, pursuant to Sections 103 and 147 of the Code, interest on the Bonds will not qualify for exclusion from gross income of the owners thereof for federal income tax purposes unless the issuance of the Bonds is approved by the applicable elected representative of a governmental unit with which the Company has entered into an agreement (or is required by statute) to provide exclusive fire fighting services, after a public hearing to consider the issuance of the Bonds has been conducted, following reasonable public notice;

and WHEREAS, the City and the Company previously entered into an Agreement (the "Agreement") pursuant to which the Company agreed, among other things, to provide exclusive firefighting services to the City; and WHEREAS, notice of the requisite public hearing was published in the Delaware State News, on May 28, 2005, a newspaper of general circulation in the City; and WHEREAS, on June 13, 2005 the City Council of the City of Dover conducted a public hearing on behalf of the Company for the purpose of considering the issuance of the Bonds; NOW THEREFORE BE IT RESOLVED THAT, the Council of the City of Dover, Delaware, for the sole purpose of qualifying the interest payable on the Bonds of the Company for exclusion from the gross income of the owners thereof for federal income tax purposes pursuant to Section 103 of the Code, does hereby approve the issuance of bonds or notes by the Company in a maximum aggregate principal amount of up to $ 5,300,000 for the purpose of financing a portion of the costs of the Project, provided, that such bonds or notes shall be an obligation of the Company and shall never be a debt of the City and the City shall not be liable for any payment on such bonds or notes. Approved by the Council of the City of Dover this _____ day of June, 2005. ___________________________ City Clerk - 2 -

SPECIAL COUNCIL MEETING A Special Council Meeting was held on May 11, 2005 at 6:00 p.m. with Council President Williams presiding. Council members present were Mr. Carey, Mr. Pitts, Mr. Sadusky, Mr. Slavin (arrived at 6:44 p.m.), Mr. Ritter, Mr. Hogan, Mr. Salters, and Mr. Ruane. Council staff members present were Mr. DePrima, Mrs. Mitchell, Mrs. McDowell, and Mayor Speed. AGENDA ADDITIONS/DELETIONS Mr. Carey moved for approval of the agenda, seconded by Mr. Salters and unanimous carried. PRESENTATION - 2005/2006 BUDGET OVERVIEW Council President Williams thanked all staff members for their work on the budget, including City Council, who started setting the direction at the Council Retreat in January 2005. She noted that a broad introduction to the budget would be provided and requested members to hold all questions and comments until the end of the introduction. Council President Williams also requested that questions regarding specific budgetary items be held until that specific budget is being discussed. Council President Williams advised members that Mr. DePrima, City Manager, hopes to get clear direction with respect to levels of expenditures and revenues, importance of existing and proposed programs and projects, and fairness in tax and utility fees. This information will allow him and the budget team to bring forward a revised budget by the third meeting. Mr. DePrima provided an overview of the 2005/2006 Budget (as on file in the Office of the City Clerk). Mr. Ruane requested staff to prepare a chart depicting the impact of the proposed customer charges and rate increases on the average household. Mr. DePrima stated that he selected random homes of varying sizes and locations and compared their previous actual water, electric, taxes, etc. with the proposed rates and assessment to determine the actual impact. He noted that the information would be presented at some point during the review. Responding to Mr. Ruane, Mrs. Tieman, Administrative Services Director, explained that there is a deficit to Kent County because the fees that the City charges its customers for sewer treatment does not cover the amount that Kent County charges the City. She advised members that the revenue from wastewater is being used to pay for sewer adjustment. Mr. DePrima noted that the charge does not equal the expenses for wastewater treatment due to the inflow and infiltration of rainwater in the system. Mr. Ruane suggested that an increase in impact fees should be considered in order that the builders and developers responsible for the growth would fund the expansion of the system and reduce the deficit. Mrs. Mitchell, Finance Director, advised members that impact fees cannot be used for operations; only wastewater debt or growth. Responding to Mr. Ritter, Mrs. Tieman stated that the new tax rate after the rollback would be $.31 cents.

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 2 Discussion - Review of 2006-2010 CIP Projects General Fund Mr. DePrima reviewed the new projects and highlighted the large projects contained in the CIP for the General Fund. Referring to the Building Access and Control Upgrade (locks, doors, and card swipe system) and Replacement of the Security System (indoor and outdoor closed circuit televisions) for the Police Department, Mr. Salters requested that one of those projects be delayed until next year. Officer Sammons advised members that if it were necessary to delay a project, they would prefer to delay the building security and closed circuit television system upgrade and move forward with the door swipe upgrade. He also advised members that they are pursuing additional funding from other sources for both projects. Mr. Ruane, noting that moving forward with a regional library in Dover is one of the City's missions, stated that some money should be set aside to fund the regional library. Mr. DePrima stated that he did not feel comfortable obligating general funds this year without a financing plan. He noted that funding may be possible from other sources, such as Parkland Reserve or Capital Asset Reserve, if Council chose to do so. Mr. Ruane suggested that committing funds, possibly for site acquisition within the next 12 months, would show the citizens that there was a good faith effort being made. Mr. Slavin felt that dedicating funds for site acquisition would also obligate them to out-year costs for the project. He noted that he had no sense of the total cost of the project or the operational impact of a new library. Mr. Slavin stated that building an anchor library, as suggested by the State, the percentage of state-matched funding would increase. Mr. Ruane reminded members that there would be planning costs involved in providing more definitive information regarding the regional library. Water/Wastewater Fund Mr. DePrima reviewed the new projects and highlighted the large projects contained in the CIP for the Water/Wastewater Fund. Mr. Ritter stated that Wilmington and Washington, DC are using zinc ortho phosphate to clean and then coat the water lines to inhibit rust. He suggested considering the allocation of pipe replacement funds for the purchase of the rust inhibitor, if it proved to be effective. Mr. Ritter noted that the EPA has endorsed the use of the inhibitor. Electric Revenue Fund Mr. DePrima reviewed the new projects and highlighted the large projects contained in the CIP for the Water/Wastewater Fund. With reference to the street light replacement program, Mr. Ritter noted that local legislators are providing the funding for the White Oak and Towne Point lighting upgrade. He suggested that other civic associations could approach the State for funding. Mr. DePrima noted that street lighting qualifies for Community Transportation funds.

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 3 Responding to Mr. Salters, Mr. DePrima noted that the State was paying $448,000 of the cost of the Governors Avenue project, which has a total cost of $1.2M. He noted that the City is taking a strong stance that when poles are taken out, the service has to be installed underground. Mr. Steve Sax, Electric Director, stated that Verizon is the only service which remains on the North Street poles. Mrs. Tieman advised members that she is investigating a pole attachment fee, which may be an incentive for companies to remove their services from City poles. Mr. Ruane moved to recess until Thursday, May 12, 2005 at 6:00 p.m. The motion was seconded by Mr. Carey and unanimously carried. Meeting Recessed at 7:53 P.M. THURSDAY, MAY 12, 2005 - 6:00 P.M. - 8:00 P.M. The Special Council Meeting reconvened on Thursday, May 12, 2005 at 6:00 p.m. with Councilman Salters presiding in the absence of Council President Williams (arrived at 7:10 p.m.) . Council members present were Mr. Carey, Mr. Pitts, Mr. Sadusky, Mr. Slavin, Mr. Ritter, Mr. Hogan, and Mr. Ruane. Council staff members present were Mr. DePrima, Mrs. Mitchell, Mrs. McDowell, and Mayor Speed (departed at 7:00 p.m.). Review of 2005/2006 Draft Budget Mr. DePrima advised members that he had prepared a base budget of $31,235,433 and provided details of the items that were eliminated to achieve that amount. Responding to Mr. Ruane, Mr. DePrima stated that the increase over last years= budget was approximately $800,000. He noted that they did not review the base budget for additional cuts. Responding to Mr. Ritter, Mr. Slavin stated that $235,000 was earmarked in the contingency fund last year for brown water. He noted that Council would have to authorize the expenditure for any other use. Mr. DePrima noted that, as previously requested, he randomly selected homes of varying sizes and used their actual data to project the impact of the proposed budget on a family=s finances. Mr. Ruane suggested using a Amedian@ home, meaning there are an equal number of homes above and below it, for comparison purposes. Mr. Ritter reminded members that residents would be paying additional Capital School District tax due to the recent referendum. General Fund Mayor Mr. Slavin noted that there had been $3,000 increases in both “Other Expenses” and “Economic Development”. Mayor Speed advised members that $5,000 is always budgeted for “Other Expenses” and is typically reduced when it appears that the funds will not be spent. He noted that “Economic Development” was increased due to the City’s participation in the Bio Conference in Philadelphia. Mayor Speed noted that the City would be partnering with the Central Delaware Economic Development Council and Delaware State University. He noted

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 4 that, due to the location, travel expenses were not included; however, the cost would increase next year due to the location of the conference. Council Responding to Mr. Hogan, Mrs. Tieman stated that the increase from $600 to $7,340 was due to a request for cell phones and internet access for Council members. Mr. Hogan stated that he did not want either included in the budget. City Manager’s Department Mr. Ruane asked why funds were allocated for the subdivision of the Garrison Tract. It was his feeling that it presumed the outcome of the Garrison Tract Commission findings. Mr. DePrima stated that the budget was developed prior to the concept and creation of the commission. Responding to Mr. Slavin, Mr. DePrima stated that funds were allocated in “Contractual Services” for the implementation of the Facility Space Plan. He noted that, although the work would be completed in-house, there may be a need for architectural design work, concept drawings, moving expenses, or office space. With reference to Broadband, Mr. DePrima stated that they had removed all references to cable and internet services and will focus on the use of the City’s fiber optics. Administrative Services Responding to Mr. Ruane, Mr. DePrima stated that the budget included projected non-bargaining increases. He noted that it was very important to respect the pay for performance plan. Mrs. Tieman advised members that the proposed Customer Service Kiosk would assist customers by allowing them to retrieve and pay their bills. She noted that the new remittance processing system was just installed. Electric Meter Reading Mrs. Tieman advised members that they would be replacing four pieces of meter reading equipment. She also noted that a new supervisor would be installing and training for a system that will read most meters within 3-days. Mrs. Tieman advised members that they were planning to purchase cell phones for the meter readers instead of radios to improve contact availability. Central Services Mr. DePrima advised members that a Material Expediter had been added to Central Services. This position will help them moving toward on-time inventory by tracking inventory and contacting vendors. Responding to Mr. Carey, Mr. DePrima noted that there was not an increase in overtime over last year. He advised members that overtime is storm sensitive and is not always used; however, it is budgeted as a contingency.

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 5 With reference to “Equipment Purchase”, Mr. DePrima noted that it was for the purchase of a “voice over internet” system. He advised members that there was a cost avoidance benefit in the amount of $12,000 per year by eliminating approximately 50 telephone lines. Finance Responding to Mr. Slavin, Mrs. Mitchell explained that the pending post-retirement medical accounting standard will require an actuarial study to determine the City’s liability. She noted that she received two (2) quotes in the amount of $12,000 and $15,000 for the study and budgeted $20,000, with an additional $5,000 for the consultant to meet with benefit groups or to hold informational meetings. Human Resources With reference to the significant increase in Medical Supplies and Physicals, Mr. DePrima explained that pre-employment drug screening is now budgeted solely in Human Resources instead of each department, as had been the practice in previous years. He noted that departments with CDL requirements will continue to budget for CDL testing. Parks and Recreation Mr. Ruane noted that there was a new focus on park maintenance and questioned why it was important. Mr. DePrima stated that he had requested staff to develop a specific park maintenance schedule. Mr. Zach Carter, Park and Recreation Director, indicated that additional personnel would be necessary to focus on maintaining the schedule. Responding to Mr. Ruane, Mr. Carter stated that a full-time staff member could address litter issues on a regular basis. Library Ms. Sheila Anderson, Library Director, advised members that, due to increased patronage, additional staff was necessary to maintain their level of service. She noted that the Library is currently open 68 hours per week and the average number of patrons for a Monday evening is 850. Planning Mr. Galvin explained that the Planning Office is struggling to keep up with day to day functions and has not had time to perform long-range planning or studies. He felt that an additional Planner would assist with those projects. Mr. Ruane asked if there were tasks that Council had committed to that have not been met, such as incentive zoning for affordable housing, historic district study/expansion, the re-working of subdivisions, and the requested strategy for meeting demands for telecommunications towers. Mr. Ritter asked if this was a critical position. Mr. Galvin stated that he was more concerned about the need for an additional inspector, which is more critical at this point. Responding to Mr. Carey, Mr. Galvin stated that an additional inspector would change the dynamics of the Inspections Department. Responding to Council President Williams, Mr. Galvin stated that they have issued 1,000 permits this year, which is 50% more than the number of permits issued last year. He noted that there is currently a backlog on inspections with a 3-day wait for footer inspections. Mr. Galvin stated that his goal was to be more responsive to the public.

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 6 Mr. Carey moved to recess until Wednesday, May 18, 2005 at 6:00 p.m., seconded by Mr. Sadusky and unanimously carried. WEDNESDAY, MAY 18, 2005 - 6:00 P.M. - 8:00 P.M. The Special Council Meeting reconvened on Wednesday, May 18, 2005 at 6:05 p.m. with Council President Williams presiding. Council members present were Mr. Carey, Mr. Sadusky, Mr. Slavin, Mr. Ritter, Mr. Hogan, Mr. Salters, and Mr. Ruane. Mr. Pitts was absent. Council staff members present were Mr. DePrima, Mrs. McDowell, and Mayor Speed (arrived at 7:20 p.m.) . Continuation - Review of 2005/2006 Draft Budget Police Responding to Mr. Salters, Mr. DePrima stated that the red light photo enforcement revenue was lower than anticipated and fewer lights were installed. He advised members to revisit the budget. once all of the lights have been installed. Mr. Ruane questioned what precipitated the promotion of a uniformed person. Mr. DePrima reminded members that they reviewed strategic objectives during the retreat and staff recommended two officers for red light enforcement review. Since the initial number of lights have not been installed, the police department felt that if a sergeant position was created in lieu of hiring an additional officer, the program could be managed. Ideally, staff would like to promote an officer to sergeant to perform day-to-day operations and supervise officers on the street. Officer Taraila stated that they receive approximately 40 violations per day, each of which must be reviewed. Mr. DePrima noted that the quality of life task force would consist of three (3) officers which would not be used for red light photo enforcement. Mr. Ruane stated that he would not support the quality of life task force if they will not be used city-wide to combat issues. Public Works -Administration Responding to Mr. Carey, Mr. Koenig stated that the ground maintenance position was in response to a request from Parks and Recreation for an additional person dedicated to the park management plan. Currently, there is one part-time, seasonal person who handles Schutte Park. Mr. DePrima cautioned that if the fields are not maintained it will become an issue of restoration instead of maintenance, which would involve periods of closure for repairs. Responding to Mr. Carey, Mr. Koenig stated that they receive many work orders for small maintenance items at the parks, such as fallen tree limbs and light bulb replacement. Mr. Salters advised members that he has received numerous complaints about the condition of Dover Park, noting that residents would like it to be cleaned up. Mr. DePrima reminded members that he requested Mr. Carter to devise a maintenance plan and work with Public Works to develop a plan for achieving the maintenance plan.

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 7 Tax Office Mr. DePrima advised members that they were not aware of Mr. Cooper’s intention to retire when the budget was created. He noted that some funds may be moved from salary and, if there is a savings, it could be earmarked during the mid-year review. Mr. Ruane reminded members that a comprehensive reassessment is forthcoming. He suggested that money be set aside within the next three (3) years to enable inside review of homes during the reassessment. Mr. DePrima stated that Cole Layer Trumble has indicated that an interior review of all homes is generally done over a period of time. Mr. DePrima presented a chart representing a base budget and with a tax revenue rollback of .0310, and the effect of increases of $.01 cent through $.07 cents (Exhibit #1). He noted that, in order to achieve the base budget, increases in fines and fees, increases in transfer taxes for this year and next year, increases in the wastewater and electric transfer, and increases in interest earnings were included. Eliminated from expenditures were many of the quality of life priorities, enhancements, transfers, and strategic items. He noted that reintroduction of the enhancement items begins at the $.05 cent mark and at the $.06 and $.07 cent marks, reserves begin to be affected. Responding to Mr. Slavin, Mr. DePrima stated that the impact of a rollback tax of $.411 cents is a tax increase of $135. He cautioned members that there really is no “typical” property and some residents may have a tax reduction based on the reassessment. Mr. Ruane questioned what percentage of the additional revenue at $.41 cents would be derived from commercial properties. Mr. DePrima responded that he had just received the data and had not had a chance to review it. Mr. Ruane advised members that there was a 57% increase in commercial values and a 27% increase in residential values. It was his feeling that the commercial values were finally in line with where the residential values have been. Responding to Mrs. Williams, Mr. DePrima stated that the whole assessment, particularly the commercial values, is more reliable than they have been in the past. Mr. Salters stated that the values of the homes have increased but the City has not made any adjustments in the taxes. If homes were assessed at the .41 cent rate, the rate would be appropriate. Mr. Salters stated that he would rather see taxes added to properties instead of adding or increasing fees, feeling that the City needs to move forward with resolving water problems and cleaning up the City and the citizens should start sharing the burden. Responding to Mr. Hogan, Mr. DePrima stated that the tax rate and the rollback must be published in a resolution, along with a comparison of the two (2) rates. Mr. Hogan noted stated that he calculated various tax increases and determined the following: a .01 cent tax increase is equivalent to 3.2%; a .02 cent increase is equivalent to 6.5%; a .03 cent increase is equivalent to 9.7%; a .04 cent increase is equivalent to 12.9%; a .05 cent increase is equivalent to 16.1%; a .06 cent increase is equivalent to 19.4%; and a .07 cent increase is equivalent to 22.6%. Mr. Slavin reminded members that Dover recently lost three (3) major employers and expressed concern that a tax increase could impact the remaining businesses. Responding to Mr. Ruane, Mr. DePrima stated that a tax rate of $.41 cents per $100 is still very competitive with other areas.

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 8 Mr. Ritter noted that State and non-profit organizations are not taxed; therefore, only 66% of the City is paying for 100% of the expenses. Mr. DePrima stated that the tax-exempt users are paying fees for services. Mr. Ruane stated that he would like the City Manager to assign someone to derive as much information as possible from the reassessment. Mrs. Williams requested Mr. DePrima to filter the database to determine a true value for exempt properties. Mr. Hogan moved that line item 30-21 of City Council's budget be reduced from $7,340 to last years amount of $600.00, seconded by Mr. Sadusky and carried by a unanimous roll call vote. Mr. Ruane moved to accept the proposed .07 cent budget, seconded by Mr. Salters. The motion failed by a roll call vote of three (3) yes and five (5) no (Mr. Carey, Mr. Slavin, Mr. Ritter, Mr. Hogan, and Mrs. W illiams) (M r. Pitts absent) . Mr. Hogan moved to publish the roll back rate of .31 cents and add a two (.02) cent tax increase. The motion failed due to the lack of a second. Mr. Salters moved to adopt the four (.04) cent tax rate for this budget year, seconded by Mr. Sadusky. Mr. Ruane requested that the motion be amended to move the $44,869 for the Planner from the .05 cent column to the .03 cent column, replacing the park maintenance position since there did not seem to be a great deal of support for it. Mr. Salters stated that he would agree to the amendment if it did not exceed .04 cents, as did Mr. Sadusky, the seconder of the motion. Mr. Slavin suggested that the City Manager now be requested to provide scenarios for tax increases between $.03 and $.06 cents, based on the previous motions indicating that range may be acceptable. Mr. Carey felt that the need for an additional Inspector was more pressing than for an additional Planner, since the Planners have recently completed several major projects and may now have time to pursue additional objectives. Mr. Ritter stated that he wanted to see the Red Light Photo Enforcement Revenues used to retain the Quality of Life Task Force Officers. On a call for the question, the motion failed by a roll call vote of four (4) yes (Mr. Sadusky, Mr. Salters, Mr. Ruane, and Mrs. Williams) and four (4) no (Mr. Carey, Mr. Slavin, Mr. Ritter, and Mr. Hogan) (Mr. Pitts absent). Mr. Hogan moved to recess until Thursday, May 19, 2005 at 6:00 p.m. Meeting Recessed at 7:57 p.m. THURSDAY, MAY 19, 2005 - 6:00 P.M. - 8:00 P.M. The Special Council Meeting reconvened on Thursday, May 19, 2005 at 6:00 p.m. with Council President Williams presiding. Council members present were Mr. Carey, Mr. Pitts, Mr. Sadusky, Mr. Slavin, Mr. Ritter, Mr. Hogan (departed at 6:30 p.m.), Mr. Salters, and Mr. Ruane. Council staff members present were Mr. DePrima, Mrs. McDowell, and Mayor Speed (arrived at 7:20 p.m.) .

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 9 Continuation - Review of 2005/2006 Draft Budget Review of 2005/2006 Draft Budget Mr. DePrima advised members that, after last evenings meeting, Council President Williams and Mayor Speed advised him that they had independently studied the transfer tax projections and requested the budget team to reevaluate the transfer tax revenue, which they did. He noted that the real estate expansion and sales experienced last year will probably continue into next year; therefore, they increased projected transfer tax revenue and provided updated information for $.01 - $.04 cent increases (Exhibit #2). He noted that the transfer tax revenue increase will accommodate the items listed under the $.01 - $.03 cent tax rate increase columns previously provided, such as Transfer to Post Retirement Reserve, Reduced Transfer from Water/Wastewater, Quality of Life Task Force/Promotion, etc. Responding to Mr. Slavin, Mrs. Tieman stated that the original transfer tax estimate was $2M, revised last week to $2.3M, and revised again last night to $2.4M for the current year. The original estimate for 2006 was $1.6M, revised last week to $1.8, and revised again last night to $2.4M. Mr. Ritter stated that he had reviewed the telephone system for $130,000 and it was his feeling that there is not a dire need for a new phone system. Mrs. Williams stated that she requested Mr. DePrima to provide numbers for the tax exempt properties. Mr. DePrima advised members that 28% of Dover properties are exempt. He also noted that there are several thousand customers residing outside of the City that are currently on the City's electric and water system. Mr. Salters stated that a $.01 cent increase is low, $.02 cents would get the City where it needs to be, and a $.025 increase would be reasonable and would provide a budget that would allow them to cut some of the fees. It was Mr. Hogan's opinion that nothing in the $.025 to $.03 cent range was critical. Mr. Slavin stated that if funding were at $.01 cent or above it would be a significant decrease in the transfer from Water/Wastewater. Mr. Ruane moved to proceed to the discussion of the Water/Wastewater Fund, seconded by Mr. Salters and carried by a unanimous roll call vote. Mr. DePrima advised members that the revenue generated from the proposed water/wastewater increases were as follows: FUND AMOUNT OF INCREASE TOTAL Water $.10 increase $160,000 Wastewater $.20 increase $286,120 Water $2.50 Customer Charge $375,000 Wastewater $2.50 Customer Charge $375,000 Transfer to General Dependent on Water/Wastwater Fund Revenue $942,786 Mr. DePrima noted that the increase in fees would be shared by all of the rate payers, including exempt properties and customers outside of the City. He noted that, although the revenue is

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 10 fairly stable, it could be impacted by the loss of a large customer or a decrease in water usage. Mr. DePrima advised members that the customer charge is also shared by all rate payers; however, the charge has a greater impact on the small user than on the large user. Mrs. Tieman stated that the customer charge was thought to be a way to add stability to the revenue by guaranteeing the quantity. Responding to Mr. Ruane, Mr. Koenig stated that the average two-person home would use 3,000 gallons of water or less per month, and the rate increase would be approximately $3.60 per year for water. Mr. Ruane moved to accept the recommended increases of $.10 for Water, $.20 for Wastewater, and customer charges of $2.50 for Water and $2.50 for Wastewater. The motion was seconded by Mr. Sadusky and failed by a roll call vote of two (2) yes, seven (7) no (Mr. Carey, Mr. Pitts, Mr. Slavin, Mr. Ritter, Mr. Hogan, Mr. Salters, and Mrs. Williams). Mr. Ritter stated that he did not feel the Royal Farms pump station, in the amount of $160,000, was critical at this time. Mr. Ritter noted that there are several trucks and cars included in the budget and suggested that the Police Department vehicles be passed down to other departments. Responding, Mr. DePrima stated that they do pass down many vehicles with many miles on them and they are recycled until Vehicle Maintenance determines that they are no longer salvageable. Mr. Koenig advised members that the White Oak Farms pump station was upgraded approximately five (5) years ago without upgrading the force main. He noted that it is currently being pumped from White Oak Farms to Station #3 and will be connected to the new County bypass, which will shorten the length. Mr. Koenig advised members that the force main would be increased from 10" to 12" and construction will begin this summer. He noted that this will be a big improvement to the system and will help define the inflow and infiltration issues. Responding to Mr. Ruane, Mr. Koenig stated that the Kent County fee will increase from $1.85 to $2.13, an increase of $.28 cents per 1,000 gallons. He noted that the City currently charges its customers $1.85 for the service. Mr. DePrima advised members that the consequence of no fee increases impact the funds being set aside for reserves to fix the inflow and infiltration and brown water issues. Mrs. Tieman stated that without the increases, it would not be possible to put $50,000 in the post retirement reserve, $750,000 in the capital assets account, or $400,000 to the Improvement and Extension Fund. Mr. Slavin stated that he would like to balance revenue and property tax. Mr. DePrima advised members that a customer charge of $1.25 for water and $1.25 for wastewater would reduce the transfer from the Water Fund to $377,000. Mr. Salters moved to approve an increase of $.10 for the water rate, $.20 for the wastewater rate, a customer charge of $1.25 for water, and a customer charge of $1.25 for wastewater. The motion was seconded by Mr. Carey.

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 11 Mr. Ritter reminded members that the rate was increased $.25 cents last year. Mr. Salters stated that the cost of the services is increasing and must be passed on to the consumer. Mr. Carey suggested the possibility that senior citizens could be exempt from the customer charge, similar to the property tax exemption. Mr. Carey moved to amend the motion to include a senior citizen exemption for the customer charge, seconded by Mr. Slavin. Mr. Ruane stated that the customer charge is related to the cost of providing a service and providing a discount for seniors could be considered discrimination. Mr. Salters suggested providing a rebate to qualifying senior citizens at the end of the budget year upon request. Mr. DePrima reminded members that some water customers are outside of the City and not a part of the tax program. Additionally, renters would not be eligible, only homeowners receiving a tax bill. Mr. Carey and Mr. Slavin agreed to withdraw their amendment and instead direct the City Manager to research other options for providing a senior citizen discount on the customer charges. The motion to approve an increase of $.10 for the water rate, $.20 for the wastewater rate, a customer charge of $1.25 for water, and a customer charge of $1.25 for wastewater was carried by a roll call vote of seven (7) yes, one (1) no (Mr. Ritter)(Mr. Hogan absent). Mr. Salters moved for approval of a $.02 cent tax increase for Fiscal Year 2005/2006, seconded by Mr. Carey. Mr. Ruane noted that there is only coverage for the Quality of Life Task Force for three quarters of the year. He requested members to consider a $.03 cent tax increase to cover those costs for the remainder of the year. Mr. DePrima stated that the $140,685 figure covers three (3) officers for three quarters of a year and it would be an additional $40,000 for three officers for the full year. He stated that they may need to make some adjustments next year. Responding to Mr. Carey, Mr. DePrima stated that the Planner position had been moved to the first column. Mr. Carey noted that it would be funded for only three quarters of a year as well. Mr. Carey stated that he would like for Council to have an opportunity to discuss the Planner position prior to the actual hiring. Mr. Salters, noting that he did not want to increase taxes again next year, recommended eliminating the Planner position in order to save money. Mr. Salters moved to amend his motion to approve a $.03 cent tax increase for Fiscal Year 2005/2006, seconded by Mr. Ruane and carried by a roll call vote of seven (7) yes, one (1) no (Mr. Ritter)(Mr. Hogan absent). Responding to Mr. Ritter, Mr. DePrima stated that it was much more effective to have Mrs. Tieman located in City Hall since more than 50% of her duties are related to the budget. He noted that she had also been assigned several special projects which would not have been accomplished otherwise. Council President Williams stated that she was initially concerned that the move would give the appearance of an “Assistant City Manager” position; however, the job description makes it very clear that it is not.

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 12 Mr. Carey moved to defer the hiring of an additional Planner until an analysis of the need for a new position can be completed by the City Manager and the Planning Director. The motion was seconded by Mr. Salters and carried by a unanimous roll call vote (Mr. Hogan absent). Electric Revenue Fund Mr. DePrima advised members that the only fee increase is the power cost adjustment. Referring to the $900,000 included in line 90-25 for the Governors Avenue rebuild project, Mr. Ruane stated that uncertainty has been raised by the State government with regard to this project and has been removed from their budget. Mr. Ruane moved to direct the City Manager to give a sense of concern to the Department of Transportation and their delegation in the General Assembly that the City would appreciate having the project included for funding, seconded by Mr. Sadusky. Mr. DePrima advised members that this is a $14M project which has only been funded for $2M. He stated that he would make the State aware that the City would require a larger commitment before the City will spend a lot of money on upgrades. Mr. Steve Sax, Electric Director, stated that he has been to all of the meetings and the City is positioning itself to be pro-active on the project. He stated that the City’s funding should send the message that the project is ready to move forward. The motion to direct the City Manager to give a sense of concern to the Department of Transportation and their delegation in the General Assembly that the City would appreciate having the project included for funding was carried by a roll call vote of seven (7) yes, one (1) no (Mr. Ritter)(Mr. Hogan absent). Mr. Salters moved that the Electric Administration, Electric Engineering, and Transmission and Distribution budgets be approved as presented, seconded by Mr. Carey and carried by a roll call vote of seven (7) yes, one (1) no (Mr. Ritter)(Mr. Hogan absent). P.F.P. Salary Calculations (Non-Bargaining Employees) Mr. DePrima presented the Pay for Performance Calculations for non-bargaining employees (Exhibit #3). Responding to Mr. Salters, Mr. DePrima stated that non-bargaining employees do not receive cost of living raises. Mr. Slavin moved for approval of the Pay For Performance Schedule as presented, seconded by Mr. Carey and carried by a unanimous roll call vote. Mr. Salters moved to adjourn, seconded by Mr. Ruane and unanimously carried. Meeting Adjourned 7:50 P.M.

SPECIAL CITY COUNCIL MEETING OF MAY 11, 12, 18, AND 19, 2005 PAGE 13 TRACI A. MCDOWELL ASSISTANT CITY CLERK All orders, ordinances, and resolutions adopted by City Council during their Special Meeting of May 11, 12, 18, and 19, 2005, are hereby approved. STEPHEN R. SPEED MAYOR /TM S:\ClerksOffice\Agendas&Minutes\Council-Minutes\2005\05-11-12&18-19-2005-BudgetReview.wpd Exhibits Attached to Original Minutes and File Copy Exhibit #1 - Table - One Cent Rate Increase From the Base Tax Rate Exhibit #2 - Table - One Cent Rate Increase From the Base Tax Rate-Revised Exhibit #3 - Pay-for-Performance Salary Calculation

2005 TAX APPEALS HEARING REPORT AS OF JUNE 2, 2005 - STIPULATED VALUES PRIOR STIPULATED PARCEL # OWNER'S NAME COMMENTS VALUE VALUE SQ FT ADJUSTMENT, SALES 56818405 STEVE B. SCHMIDT 107,000 102,100 COMPARISON APPRAISAL AND SALES 57620335 GARRY & PENNY SAROUKOS 297,900 258,200 COMPARISON 57606406 WILLIAM & MARIA BOULINE 99,600 94,200 SALES COMPARISON DATA ERROR CORRECTION, SQ FT ADJUSTMENT, SALES 57710135003 MICHAEL S. SHIFFLET 94,900 87,400 COMPARISON DATA ERROR CORRECTION, SALES 65814101701 JAMES & BARBARA BROCKTON 112,800 86,000 COMPARISON 56818128 SK HOLDINGS - DOVER LLC 431,200 295,700 SALES COMPARISON 57718290 FREDERICK W. HERTRICH III 10,062,900 2,455,900 DATA ERROR CORRECTION 57709521 RIDGELY HOUSE & GARDENS LLC 417,200 328,300 INCOME APPROACH ADJUSTMENT 57709526 HENRY R. HORSEY 357,600 262,000 DATA ERROR CORRECTION DATA ERROR CORRECTION AND 57608516 ERIC O'BRIEN 87,000 67,600 SALES COMPARISON DATA ERROR CORRECTION AND 65818123 FREDERICK TOLBERT 105,400 86,500 SALES COMPARISON SQ FT ADJUSTMENT AND SALES 65814101110 NANCY OCHS 113,500 92,300 COMPARISON 5570011303 DOVER MALL LP 10,878,700 9,246,900 INCOME APPROACH ADJUSTMENT 55700114 DOVER MALL LP 56,187,700 43,885,500 INCOME APPROACH ADJUSTMENT 5570011302 DOVER MALL LP 19,505,800 14,767,800 INCOME APPROACH ADJUSTMENT AGRICULTURAL EXEMPTION VALUE CORRECT ON HOUSE AND 6690010701 DALE CONARD 1,889,100 147,700 SITE APPRAISAL AND SALES 58512423 JEFFREY & FRANCES WAID 185,400 174,200 COMPARISON APPRAISAL BY OWNER AND 5680910903 CRISFIELD LLC 2,217,570 1,263,100 INCOME APPROACH ADJSUTMENT 5570011304 BERKS CTY REAL EST ASSOC V LP 15,897,200 14,784,400 INCOME APPROACH ADJUSTMENT 57606664 ONE GREENTREE OFFICE CENTER LP 3,745,400 2,690,000 INCOME APPROACH ADJUSTMENT 57606665 DOVER HUNT LAND CO. LLP 300,000 20,000 LAND RESIDUAL ADJUSTMENT 57606666 STEVENS/ANSTINE 1987-1 LP 3,973,800 3,973,800 NO CHANGE 57606667 GREENTREE VILLAGE CENTER LP 8,846,600 6,466,900 INCOME APPROACH ADJUSTMENT 57606669 STEVENS/ANSTINE 1987-1 LP 1,208,200 925,000 INCOME APPROACH ADJUSTMENT 57605344 YATES ANNE S 128,800 119,000 SALES COMPARISON ANALYSIS FIRST STATE FEDERAL CREDIT 57607156 UNION 1,236,300 911,500 INCOME APPROACH ADJUSTMENT 57608401 HARMAN OIL COMPANY 36,400 25,900 LAND USE ADJUSTMENT 57705323 HARMAN BROTHERS LLC 40,100 36,300 LAND USE ADJUSTMENT

PRIOR STIPULATED PARCEL # OWNER'S NAME COMMENTS VALUE VALUE RENOVATIONS NEEDED 57718107 HARMAN OIL COMPANY 88,900 76,100 UNLIVABLE SHAPE, SIZE AND LOCATION. LAND 56818547 HARMAN BROTHERS LLC 43,800 35,600 ADJUSTMENT 56817331 HARMAN BROTHERS LLC 196,300 196,300 NO CHANGE 57706189 AMER AHMAD E 8,254,300 4,091,900 INCOME APPROACH ADJUSTMENT 5771312822 CAREY CYNTHIA M - TRUSTEE 330,900 297,800 SALES COMPARISON ANALYSIS SQ FT ADJUSTMENT AND SALES 56715124 BENNER ELIZABETH V 104,900 102,000 COMPARISON SQ FT ADJSUTMENT AND SALES 57609249 WEINTRAUB DENNIS & KAREN 198,000 187,400 COMPARISON CLAYTON CHRISTINE S & GSELL 56709116 FREDERICK D 499,600 425,100 SQ FT ADJUSTMENT SQ FT ADJUSTMENT, SALES 56713230 WELSH ROBERT D & LINDA Y 218,200 178,700 COMPARISON SQ FT ADJUSTMENT AND STORY 56716201 LONG JAMES P 147,100 129,400 HEIGHT 66800127 WICH WILLIAM R 123,900 120,600 SALES COMPARISON SALES COMPARISON, LAND 57712106 MCDANIEL BARBARA R 623,000 298,600 DEVELOPMENT RESTRICTIONS 55717134 MCDANIEL BARBARA R 160,400 145,800 SALES COMPARISON ARELLANO LAMBERTO M MD & 57713252 LYZBETH REVOC TRUST 177,700 164,700 SALES COMPARISON ARELLANO LAMBERTO M MD & SQ FT ADJUSTMENT, INCOME 5771714501 LYZBETH REVOC TRUST 526,900 355,700 APPROACH ADJUSTMENT DATA ERROR CORRECTION AND 57705352001 QUINN JAMES P 107,100 77,700 SALES COMPARISON DATA ERROR CORRECTION AND 57705353 QUINN JAMES P 116,100 78,400 SALES COMPARISON 56715116 MCNAIR JAMES D II 101,000 97,900 SALES COMPARISON DATA ERROR AND SALES 56815206 DUPHILY JOAN T 49,300 34,500 COMPARISON DATA ERROR AND SALES 56815207 DUPHILY CRYSTAL L 124,300 101,500 COMPARISON DATA ERROR AND SALES 56716176 FENNEL CARLD & GENEVA P 147,500 144,600 COMPARISON 66800205 DIEHL DANIEL J & PATRICIA S 126,900 125,600 DATA ERROR 56612130 AUSEJO PLACIDO JR & AZUCENA 328,200 321,100 SALES COMPARISON SQ FT ADJUSTMENT, SALES 66808109 SIMPSON ADAM E & SUSAN B 295,400 254,600 COMPARISON, STORY HEIGHT 57508105 RONSTON RICHARD & ELIZABETH A 179,100 179,100 NO CHANGE DATA ERROR AND SALES 58508320 COAN STUART W & SUSAN S 190,400 163,400 COMPARISON SQ FT, STORY HEIGHT AND SALES 57705233 MOSES DAVID & CECICILIA V 170,800 140,400 COMPARISON 57607102 BIEKER RICHARD F & KATHLEEN A 94,200 93,600 DATA ERROR ERROR CORRECTION AND SALES 58508111 BIEKER RICHARD F & KATHLEEN A 191,400 165,800 COMPARISON 5771412101 ARMIGER BETH 137,200 133,100 LAND SIZE ADJUSTMENT BUILDINGS REMOVED FROM 57709351 BRAUN PROPERTIES LLC 151,900 69,500 RECORDS

PRIOR STIPULATED PARCEL # OWNER'S NAME COMMENTS VALUE VALUE BUILDING REMOVED FROM 56720118 EDGELL ROBERT L 291,500 215,400 RECORDS SQ FT ADJUSTMENT, STORY 56718208 DIX THOMAS J KATHRYN M 181,700 165,200 HEIGHT, SALES COMPARISON 56711153 PARKER JONH E & CYNTHIA L 160,400 155,600 SALES COMPARISON SQ FT ADJUSTMENT AND SALES 57605306 ORVIS JANICE L 176,300 161,000 COMPARISON 66800204 DIEHL DANIEL J & PATRICIA S 107,600 107,600 NO CHANGE ANDERSON SCHUYLER & SMITH 57606618 THOMAS G 98,800 95,000 DATA ERROR SQ FT ADJUSTMENT AND SALES 5671920223 TMM HOLDING CORP LLC 497,100 264,300 COMPARISON SQ FT ADJUSTMENT, SALES 56709169 MYERS ROBERT J & LUETT E 174,300 179,500 COMPARISON 66800124 HIBBLER CLYDE L JR 23,700 23,700 NO CHANGE 66800123 HIBBLER VERNA 79,100 73,100 DATA ERROR 66800126 HIBBLER CLYDE L 51,000 51,000 NO CHANGE 57709132 HIBBLER CLYDE L JR 14,100 14,100 NO CHANGE DATA ERROR AND SQ FT 57612124 GRAY BEULAH 110,300 96,700 CORRECTION 154,734,670 114,242,900

2005 TAX APPEALS HEARING REPORT AS OF JUNE 2, 2005 - EXEMPTIONS ORIGINAL ADJUSTED TAX PARCEL ID OWNERSHIP VALUE VALUE RECOMMENDATION 05850820201 Capitol Baptist Church 62,800 62,800 Exemption Granted 057717310 Capital Grange No. 18 296,000 296,000 Exemption Granted 057717315 Capital Grange No. 18 57,800 57,800 Exemption Granted 057608429 Holy Trinity Church 28,300 28,300 Exemption Granted 444,900 444,900

UTILITY COMMITTEE The Utility Committee Meeting was held on May 23, 2005, at 5:30 p.m. with Chairman Carey presiding. Members present were Mr. Ruane, Mr. Sadusky, Mr. Cregar, and Mr. Snaman. Members of Council present were Mr. Pitts, Mr. Slavin (arrived at 5:42 p.m.) Mr. Ritter, Mr. Salters (arrived at 6:18 p.m.) and Council President Williams. AGENDA ADDITIONS/DELETIONS Mr. Sadusky moved for approval of the agenda, seconded by Mr. Snaman and unanimously carried. Puncheon Run Pumping Station Upgrades The FY-2005 Operating Budget for the Public Works Wastewater Management Division included a capital project to upgrade the existing Puncheon Run Pumping Station. The upgrade includes the replacement of the existing pumps and piping, installation of new electrical equipment and controls, installation of a new HVAC system, bypass pumping and miscellaneous building improvements. The low bid was received from C&D Contractors, Inc., Wilmington, Delaware, in the amount of $951,290. Members were advised that based on the referenced estimated expenses, construction phase expenses are projected to be $1,061,290, of which $502,020.47 has been allotted in the FY-2005 budget. The remaining funds are to be reassigned from the U.S. 13 East Interceptor Sewer Project which has a lower construction priority at this time. Partial funding for the U.S. 13 East Interceptor Sewer Project was provided by a bond issue in 2003. Bond funds in the amount of $1,000,000 have been assigned to the U.S. 13 East Interceptor Sewer Project. Due to alignment issues, staff availability, and easement acquisition for the U.S. 13 Interceptor Sewer Project, staff requested that the project budget for the interceptor sewer be reduced until these issues have been fully resolved. The remaining $250,000 in the interceptor sewer project is being provided from the Impact Fee Reserve Fund and will allow construction of the first segment of the alignment on property owned by Dover Downs, Inc. To change the use of these bond funds from the U.S. 13 Interceptor Sewer Project to the Puncheon Run Pumping Station Upgrade, a resolution to amend bond documents will be required, which will be provided by the Finance Department for Council consideration prior to the use of the funds. Staff recommended approval of the low bid submitted by C&D Contractors, Inc., in the amount of $951,290 for the construction of the Puncheon Run Pumping Station Upgrades and authorizing the Finance Director to prepare a bond resolution for Council consideration to amend the projects to be funded with the 2003 bond issues. The estimated total construction costs associated with the project is $1,061,290. Mr. Koenig, Public Works Director, explained that the inflow and infiltration and brown water issues must be resolved before the City can begin working on the U.S. 13 Interceptor Sewer Project, which was the original plan for bond monies to extend through Dover Downs. Mr. Ritter referred to the suggestion made during the past Council Retreat regarding the concept of the pumping stations being owned by the County. He noted that the City would not have to consider this issue if the City would relinquish ownership of the pumping stations to the County.

UTILITY COMMITTEE MEETING OF MAY 23, 2005 PAGE 2 Responding, Mr. DePrima stated that he met with County representatives and indicated the City’s interest in having the pumping stations owned by the County. Although the initial reaction was not positive, he stated that before they would give it serious consideration, the pumping station would need to be rehabilitated. Members questioned what effect this would have on the City’s debt since bond funds would be used for the project. Mrs. Mitchell, Finance Director/Treasurer, was requested to consult with the City’s Bond Counsel regarding this matter. Mr. Ruane moved to recommend approval of staff's recommendation for awarding the construction contract to C & D Contractors, Inc. in the amount of $951,290 for the construction of the Puncheon Run Pumping Station Upgrades; to authorize staff to negotiate an engineering services agreement with Whitman Requardt & Associates to provide technical review of shop drawings, attend monthly construction meetings and answer all technical interpretation of the design and construction drawings (the estimated costs of these services will be $60,000. A separate agreement will be brought to Council for formal authorization); to authorize funding in the amount of $50,000 for a construction contingency for change orders, which represents 5.25% of the low bid; and to authorize the Finance Department to prepare a bond resolution for Council consideration to amend the projects to be funded with the 2003 bond issue (Attachment #1 - Bond Resolution). The estimated total construction costs associated with the project is $1,061,290. The motion was seconded by Mr. Sadusky and unanimously carried. Time and Material Contract - George & Lynch, Inc. In July 2004, Kent County Levy Court approved a low bid from George & Lynch, Inc. for a general labor and equipment contract, also known as a time and materials contract. In accordance with Section 3.3 (J) of the City of Dover Purchasing Policy, “The City of Dover is permitted to use state, county, municipal, and other government or private company contracts to purchase material once it has been determined that the procedures outlined within this policy will not be violated. Any deviation from this policy for the purpose of cooperative purchasing must be approved by the City Manager prior to entering into any purchase agreement”. Since there have been a number of bidders on various projects during the current bidding environment, staff requested consideration of several projects to be constructed using the labor, materials, and equipment charges identified in the low bid from George & Lynch, Inc., as follows: Location Remaining/Proposed Project Budget Division Street Water Main Upgrade $598,340.00 (FY-2005) U.S. 13 East Interceptor Sewer Main - Segment 1 $247,542.55 (FY-2005) White Oak Farms Pump Station Force Main Rerouting $160,000.00 (FY-2006) Kings Highway Sewer Diversion Project $ 60,000.00 (FY-2006) George & Lynch, Inc. has offered to extend the low bid unit prices for labor, materials and equipment to the City through December 31, 2005. Staff recommended acceptance of the extension of the low bid from George & Lynch, Inc. through December 31, 2005 for the purpose of providing general labor, materials and equipment under a "Time & Materials" contract for the purpose of constructing public works projects as authorized by the City's Purchasing Policy.

UTILITY COMMITTEE MEETING OF MAY 23, 2005 PAGE 3 Mr. DePrima explained his authorization for deviation in accordance with the Purchasing Policy. Although the Public Works Director had indicated his opinion that Section 3.3 (J) of the Purchasing Policy includes labor, Mr. DePrima stated he disagreed and explained that the Purchasing Policy allows for authorization by the City Manager for deviation, which is what should be considered in approving the recommendation. Mr. Ruane questioned if Section 3.3 (J) of the Purchasing Policy should be amended to include the purchase of “labor”. He relayed concern with the City Manager having to continuously deviate from the policy. Mr. Ruane moved to recommend that the City Manager, along with the Finance Director/Treasurer, review the Purchasing Policy for an amendment that would eliminate the need for the City Manager to routinely use deviation authority to be brought back to the committee for review. The motion was seconded by Mr. Cregar and unanimously carried. Responding to Mr. Carey, Mrs. Mitchell stated that approval of the time and material should remain within the budget of the project costs. In an attempt to resolve any concerns at this time, Mr. DePrima suggested that members include a statement that would authorize the Public Works Director to purchase project material when an analysis shows that direct purchases are less than material costs estimated by George & Lynch and under the budgeted amount. Mr. Sadusky moved to recommend approval of staff’s recommendation to accept the extension of the low bid from George & Lynch, Inc. through December 31, 2005 for the purpose of providing general labor, materials and equipment under a “Time & Materials” contract for the purpose of constructing public works projects, as authorized by the City’s purchasing policy, and further authorize the Public Works Director to purchase project material when an analysis shows that direct purchases are less than material costs estimated by George & Lynch and under the budget amount. The motion was seconded by Mr. Snaman and unanimously carried. Mr. Snaman moved for adjournment, seconded by Mr. Sadusky and unanimously carried. Meeting Adjourned at 6:30 P.M. Respectfully submitted, Carleton E. Carey, Sr. Chairman CEC/jg S:\ClerksOffice\Agendas&Minutes\Committee Minutes\UtilityCommittee Block.wpd Attachments Attachment #1 - Bond Resolution

SAFETY ADVISORY AND TRANSPORTATION COMMITTEE The Safety Advisory and Transportation Committee Meeting was held on May 24, 2005, at 6:30 p.m. with Chairman Hogan presiding. Members present were Mr. Carey, Mr. Link, and Mr. Lakeman. Mr. Ritter was absent. Mr. Sadusky was also present. AGENDA ADDITIONS/DELETIONS Mr. Carey moved for approval of the agenda, seconded by Mr. Link and unanimously carried. Consideration of Proposed Ordinance Amendment - Chapter 13, Motor Vehicles and Traffic - Section 13-30.2, Vehicle Parking Limited Where Carrying Capacity is in Excess of One Ton, and Trailer and Motor Home Parking During their meeting of April 27, 2005, members reviewed a proposed ordinance amendment to Chapter 13, Motor Vehicles and Traffic, which would impose a time limit of twenty-four (24) consecutive hours for parking a boat trailer on residential streets. Currently, parking of boat trailers on residential streets is limited to two (2) hours. Mr. Carey advised members that he had received calls from citizens in reference to this matter and provided the new committee members with a summary of the last meeting. He explained that, due to their being some questions, this item was tabled in order for the Planning and Inspections Department to provide additional information and to give the concerned resident an opportunity to address the committee. Mr. Kline Kemp, 228 Jefferson Terrace, stated that two complaints had been lodged against him for having his boat parked in front of his residence for longer than the two hour limit. He explained that boat storage facilities are not open at 4:00 a.m. He would like to see the ordinance changed to allow time for the loading, unloading and cleaning of the boat, which is difficult to do in the two (2) hour time limit; however, it could be accomplished in twenty-four (24) hours. Mr. Hogan suggested that rather than twenty-four (24) hours, the time limit be set at twelve (12) hours. Concurring, Mr. Link also suggested that a maximum boat size be included in the ordinance. After much discussion, the committee recommended that Section 13-30.2 (d) be amended to read, as follows: “It shall be unlawful for any person to park a trailered boat under twenty-five (25) feet on the streets of Dover for a period longer than twelve (12) consecutive hours. For any trailered boat twenty-five feet or greater, refer to Section 13-30.2 (a).” Noting that a number of citizens had expressed concern with motor homes at the previous meeting, Mr. Lakeman suggested that the committee consider motor homes with this amendment. Mr. Hogan requested that Mr. Galvin, Director of Planning and Inspections, provide members with a draft of the recommended changes for boats and include provisions for motor homes as well at the next meeting.

SAFETY ADVISORY AND TRANSPORTATION COMMITTEE MEETING OF MAY 24, 2005 PAGE 2 Mr. Lakeman moved to defer the matter until the next meeting in order to allow Mr. Galvin an opportunity to provide members with the changes recommended for Section 13-30.2(d) and additional information to include motor homes, seconded by Mr. Link and unanimously carried. Mr. Carey moved for adjournment, seconded by Mr. Lakeman and unanimously carried. Meeting Adjourned at 7:08 P.M. Respectfully submitted, Kenneth L. Hogan Chairman KLH/rm S:\ClerksOffice\Agendas&Minutes\Committee-Minutes\2005\05-24-2005 SA&T.wpd

Office of the Mayor MEMORANDUM TO: Members of City Council FROM: Stephen R. Speed, Mayor DATE: June 3, 2005 RE: Monthly Report – April 2005 It is an honor and pleasure to provide you with the efforts of the Mayor’s office for April 2005, a particularly busy month. As always, I would be happy to answer any questions or provide any additional information. Date Event/Meeting/Activity 1 Senator Carper’s Homeownership Initiative Unveiling – Sen. Carper unveiled the Dover Community Partnerships effort to increase homeownership in downtown Dover at 219 Cecil Street. Members of the Partnership, several members of City Council and members of the community attended the event. Retired & Senior Volunteer Program (RSVP) – The Modern Maturity Center hosted the luncheon and awards ceremony to recognize all of its volunteers. Sen. Carper, Levy Court Commissioner Angel, and hundreds of volunteers attended the ceremony. 3 Dover Air Force Base (DAFB) Operational Readiness Inspection Reception – DAFB hosted this reception at The Landings to welcome members of the Air Force inspection team. Councilman Carey, Col. Pray, Col. Rutland and members of the 436th and 512th Airlift Wings attended the event. 4 Mayoral Institute for Weapons of Mass Destruction (WMD) and Terrorism Incident Preparedness – Lewes Mayor James Ford hosted this seminar for mayors and town managers from several Delaware municipalities. This event was sponsored by the Delaware Emergency Management Agency (DEMA).

Mayor’s Monthly Report April 2005 Page 2 of 4 12 Kent County Levy Court Access Road Ribbon Cutting – Local state legislators, members of Levy Court, several members of City Council, and other dignitaries attended this ribbon cutting to commemorate the opening of the access road to the new Kent County Administration Building. 13 Kent County Strategic Fund Committee – Members of the Kent County Strategic Fund Committee met and voted unanimously to provide Eastern Shore Environmental with $250,000 to help defer the costs of moving to their new location away from DAFB. The Outlook at the Duncan Center Grand Opening – Local state legislators, Levy Court members, several members of City Council, and other dignitaries attended this event to commemorate the grand opening of this unique facility in downtown Dover. Candidates Night - The League of Women Voters, the Greater Dover Committee and the Kiwanis Club of Dover hosted this debate on the campus of Delaware Technical and Community College for candidates running for City Council. Council candidates and numerous citizens attended the event. 18 Delaware State Division of Human Relations Fair Housing Conference – The State Division of Human Relations held its annual Fair Housing Conference at the Sheraton Dover Hotel. Many representatives of the Human Relations and Fair Housing communities attended the conference. 19 Kent County Administration Building Grand Opening and Ribbon Cutting – Lieutenant Governor Carney, local state legislators, Levy Court members, several members of City Council and local citizens attended the event to commemorate the opening of Kent County’s new administration building. 21 Mt. Sinai Church Mid-Atlantic Regional Conference – Members of Mt. Sinai held their annual conference at the Sheraton. Chaplain Dixon also attended the reception. 22 Mayors/Managers Meeting – The mayors and professional managers of Wilmington, Newark, Dover and Georgetown met in Wilmington to discuss issues of mutual interest. 23 Dover Little League Opening Day Ceremony – Dover Little League held its opening day ceremony and commemorated its 50th Anniversary. Sen. Carper, Rep. Stone, Rep. Ennis, other dignitaries, and the parents, coaches, umpires, officials, and little league players attended the ceremony. Union Lodge No. 7 A.F. & A.M. Masonic Hall Dedication – Union Lodge No.7 held a dedication ceremony for its new building on Wyoming Mill Road. Members of the lodge and members of the Grand Lodge of Delaware were in attendance. State Street Inn Open House – The owners of the new State Street Inn Bed and Breakfast held an open house to showcase the recently completed renovations. Interested members of the community attended the open house.

Mayor’s Monthly Report April 2005 Page 3 of 4 Tuskegee Airmen Scholarship Dinner – The local chapter of the Tuskegee Airmen presented scholarships to deserving students from local schools at its annual dinner. Kevin Smith from Sen. Biden’s office, members of the local Tuskegee Airmen chapter and the scholarship recipients attended the dinner and awards presentation. All Ranks Military Ball – Gen. Vavala, Commander of the Delaware National Guard, hosted this ball at Dover Downs. Col. Pray and other uniformed personnel from all branches of the service were in attendance. 27 Senator’s Superstars Guest Speaker – Arthur Paul hosted the Annual Senator’s Superstars program at Dover High School (DHS) to recognize many of the outstanding students who attend DHS. Members of the Capital School Board, students, and their families attended this event. 28 The Two Bays District of the Boy Scouts of America Distinguished Citizen Award Dinner – The Two Bays District awarded Mary Skelton its Distinguished Citizen of the Year Award at the Sheraton. Numerous elected officials, other dignitaries, and members of the Boy Scouts organization attended the awards dinner. 30 Homeland Security Exercise & Evaluation Program, Emergency Response Full Scale Exercise – The Delaware Emergency Management Agency hosted this full scale exercise at Dover Downs. First responders from numerous state and local agencies attended and/or participated in the event, along with hundreds of volunteers. Other meetings/events and grand openings/ribbon cuttings attended: City Council Meetings Central Delaware Economic Development Council Delaware Economic Development Council Rotary Central Delaware Chamber of Commerce Utility Committee Legislative, Finance, & Administration Committee Parks, Recreation, & Community Enhancement Committee Delaware Civic Center Corporation Constituent Meetings Delaware League of Local Governments USO Charity Auction Committee Greater Dover Committee Towne Point/White Oak Neighborhood Association Meeting with DelDOT Homeland Defense and Terrorism Preparedness Working Group Homeland Defense and Terrorism Preparedness Funding Committee Major Kevin Harding’s Retirement Police Department Swearing-in Ceremony Police Department Service Awards West Dover Connector Working Group Hutchins Funeral Local Legislators’ Meeting St. Thomas More Academy Honor Society Induction House of Pride National Alcohol Screening Day

Mayor’s Monthly Report April 2005 Page 4 of 4 Delaware Mentoring Council Benefit Concert Meeting Weed & Seed Meetings Methodist Church Reception for Bishop Matthews Promotion Selection Party for Col. John I. Pray Blue Suiter’s Golf Tournament Wild Meadows Neighborhood Association Meeting Delaware Department of Transportation Directional Boring Meeting Dover Community Partnership Reception Holy Cross Virtual City Discussion Delaware Aerospace Education Foundation Delaware Federation of Families for Children’s Mental Health Ribbon Cutting Delaware Civic Center Corporation Presentation to the Delaware Hotel & Lodging Association Small Business Week Breakfast Mayor’s Prayer Breakfast Committee Delaware Civic Center Corporation Presentation to the League of Local Governments

FIRST READING WHEREAS, the 2004/2005 fiscal year property tax rate for the City of Dover is $.411 (forty one and one tenth cents) per hundred dollars of assessed value and the Tax Assessor reported that the total assessed value of property at the beginning of the year was $1,761,053,800; and WHEREAS, upon completion of the re-evaluation completed in 2005, the Tax Assessor is reporting the total assessed value minus new construction assessed in 2004/2005 to be $2,314,244,665; and WHEREAS, Delaware State Law: 22 Delaware Code Section 1105(b) requires municipalities to calculate a “rolled-back” tax rate so as to provide the same tax revenue as was levied during the prior fiscal year and to state that the percent, if any, by which the property tax rate to be levied exceeds the “rolled-back” property tax rate. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: That the City of Dover “rolled-back” tax rate is $.310 per hundred of assessed value, and 2005/2006 tax rate is to be set at $.34 per hundred dollars of assessed value, the increase over the rolled-back tax rate being 9.68%. ADOPTED: * S:\ClerksOffice\Ordinances\2005\Draft Ordinances\RollBackTaxes-First Reading.wpd

FIRST READING 2005-2006 BUDGET ORDINANCES GENERAL FUND CASH RECEIPTS AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amount hereinafter named aggregating Thirty-Two Million Two Hundred Eighty-Six Thousand Nine Hundred Eighty-Six Dollars ($32,286,986) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipts Estimates 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 2,776,047 2,594,353 Fines and Police Revenue 728,020 728,020 911 Fee 64,000 64,000 Interest Transfers and Earnings 150,000 150,000 Library Revenues 45,200 46,450 Kent County Book Reimbursement 297,000 375,000 Business Licenses 1,250,000 1,275,000 Permits and Other Licenses 858,300 871,400 Miscellaneous Charges 45,219 44,650 Police Extra Duty 377,720 377,720 Property Taxes 7,372,918 8,161,808 Recreation Revenue 92,700 95,500 Franchise Fee 360,000 360,000 Transfer Tax 2,400,000 2,400,000 Trash Fees 902,000 1,074,560 DSWA Trash Fee Rebate 175,583 176,000 Rent Revenue - Garrison Farm 28,213 28,213 Court of Chancery Fees 520,000 540,000 Internet Revenue 20,000 20,000 Intrafund Service Receipts Water/Wastewater 997,653 1,101,076 Intrafund Service Receipts Electric 3,772,225 3,998,495 Grants: Police Related 172,000 160,000 State Grant - Trail Maintenance 1,200 0 Recreation Grants 20,000 0 Misc Grant Revenue 13,000 100,000 Sale of Land 16,750 0 Transfers From: Municipal Street Aid 792,000 792,000 Civil Traffic Penalties 300,000 500,000 Water/Wastewater 848,016 535,785 Electric 5,463,008 5,716,956 General Contingency 250,000 0 Fund Totals 31,108,772 32,286,986

First Reading - 2006 Budget Ordinances June 13, 2005 Page 2 GENERAL FUND - CONTINUED CASH RECEIPTS AND BUDGET FOR 2005-2006 Expense Summary 2004-2005 2005-2006 Revised Budget Department Expenses: City Clerk 340,307 361,757 Council 141,837 127,754 Assessor 293,249 168,400 Fire 925,334 969,254 Grounds Maintenance 1,004,170 1,045,638 Library 900,876 1,010,851 Recreation 688,116 645,406 Planning 201,142 256,846 Public Inspections 931,262 1,022,441 Police 9,889,125 10,757,794 Police Extra Duty 452,280 452,280 Streets 1,232,177 1,301,050 Sanitation 1,992,611 2,335,873 City Manager 371,952 462,205 Information Technology 835,000 962,192 Finance 613,070 677,994 Public Works - Administration 303,833 321,002 Facilities Management 1,076,650 944,818 Public Works - Engineering 255,624 298,451 Central Services 773,141 876,287 Fleet Maintenance 616,218 656,947 Administrative Services 1,084,075 1,119,930 Human Resources 290,074 325,114 Mayor 106,684 109,239 Department Subtotals 25,318,807 27,209,523 Debt Service 440,372 435,247 Transfer to Post Retirement Benefit Reserve 600,000 150,000 Transfer to Workers Compensation 16,000 0 Transfer to Contingency 0 34,000 Transfer to Capital Asset Reserve 0 150,000 Insurance 574,643 465,980 Retirees Health Care 646,627 732,555 Street Lights 533,000 533,000 IT Emergency Preparedness Plan 0 100,000 Transfer to Parkland/Recreation Reserve 374,970 0 Uncollectibles - Trash and Other 10,000 10,000 Current Year Balance 2,594,353 2,466,681 Other Expenses Subtotals 5,789,965 5,077,463 Fund Totals 31,108,772 32,286,986 2. The City Manager is hereby authorized, without further approval of the City Council, to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 3 GENERAL CAPITAL ASSET REPLACEMENT FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Three Hundred Nineteen Thousand Nine Hundred Eighteen Dollars ($319,918) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipts Estimates 2004-2005 2005-2006 Revised Budget Beginning Balance 164,969 164,969 Interest Earnings 0 4,949 Transfer from General Fund 0 150,000 Total 164,969 319,918 Expense Summary Carry Forward to Next Year 164,969 319,918 Total 164,969 319,918 Note: Funding of the contingency fund exceeds the required two GENERAL FUND CONTINGENCY CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Six Hundred Five Thousand Seven Hundred Ninety-Five Dollars ($605,795) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipts Estimates 2004-2005 2005-2006 Revised Budget Beginning Balance 788,109 554,952 Interest Earnings 16,843 16,843 Transfer from General Fund 0 34,000 Total 804,952 605,795 Expense Summary Transfer to General Fund 250,000 0 Carry Forward to Next Year 554,952 605,795 Total 804,952 605,795 Note: Funding of the contingency fund exceeds the required two percent of the current year operating revenues - $605,604.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 4 2005-2006 BUDGET ORDINANCES - CONTINUED MUNICIPAL STREET AID FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Seven Hundred Ninety-Two Thousand Dollars ($792,000) so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Beginning Balance 143 0 State Grant 792,000 792,000 Fund Totals 792,143 792,000 Expense Summary Items Transfer to General Fund 792,143 792,000 Fund Totals 792,143 792,000 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. DELAWARE PREVENTION NETWORK CASH RECEIPTS/REVENUE AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Seventy Thousand Dollars ($70,000) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items State Grants 0 70,000 Fund Totals 0 70,000 Expense Summary Items Program Expenses/Supplies 70,000 70,000 Expense Totals 70,000 70,000 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 5 2005-2006 BUDGET ORDINANCES - CONTINUED WEED AND SEED FUND CASH RECEIPTS/REVENUE AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Forty-Five Thousand Seven Hundred Seventy-Two Dollars ($45,772) much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Federal Grant 44,170 45,772 Fund Totals 44,170 45,772 Expense Summary Items Salaries 34,146 35,072 FICA 2,612 2,683 Health Insurance 4,966 5,501 LID Insurance 219 226 Workers Compensation 178 186 Pension 2,049 2,104 Expense Totals 44,170 45,772 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. WATER/WASTEWATER FUND REVENUE AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Thirteen Million Seven Hundred Fifty-Six Thousand Eighty-One Dollars ($13,756,081) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Prior Year Balance - Water 1,627,541 2,107,546 Prior Year Balance - Wastewater 612,267 1,006,363 Prior Year Balance - KCSA (1,085,930) (1,411,416) Water Fees 3,736,068 4,120,930 Wastewater Fees 2,691,226 3,191,760 Wastewater Adjustment Fees 2,620,407 3,047,178 Water Tank Space Leasing 287,000 303,000 Impact Fees 1,050,000 665,000 State Reimbursement 44,000 0 Miscellaneous Service Fee 41,950 41,950 Transfer from Contingency 241,680 0 Transfer to KCSA from Wastewater 354,107 643,770 Interest Earnings 110,000 40,000 Base Totals 12,330,316 13,756,081

First Reading - 2006 Budget Ordinances June 13, 2005 Page 6 2005-2006 BUDGET ORDINANCES - CONTINUED WATER/WASTEWATER FUND - CONTINUED Expense Summary 2004-2005 2005-2006 Revised Budget Direct Expenses: Construction 495,773 538,366 Water Department 797,534 927,211 Water Treatment Plant 631,256 649,662 Wastewater Department 712,928 797,329 Meter Reading 55,081 56,816 Kent County Treatment Charge 3,300,000 3,834,000 Retirees Health Care 110,342 142,983 Intrafund Service Fees 997,653 1,101,076 Direct Expenses Subtotal 7,100,567 8,047,443 Other Expenses: Debt Service - Water 660,221 935,546 Debt Service - Wastewater 434,492 668,620 Debt Service Arbitrage Rebate 34,390 0 Transfer To: General Fund from Water 424,008 267,893 General Fund from Wastewater 424,008 267,892 Kent County Chg from Wastewater 354,107 643,770 Water Improvement and Extension 374,927 693,525 Wastewater Improvement and Extension 105,595 389,642 Post-Retirement Benefits Reserve 100,000 50,000 Impact Fee Reserve 615,508 0 Capital Asset Reserve 0 600,000 Current Year Balance Water 2,107,546 1,853,993 Current Year Balance Wastewater 1,006,363 892,225 Current Year Balance KCSA (1,411,416) (1,554,468) Other Subtotal 5,229,749 5,708,638 Totals 12,330,316 13,756,081 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 7 2005-2006 BUDGET ORDINANCES - CONTINUED WATER/WASTEWATER IMPROVEMENT AND EXTENSION FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Two Million Four Hundred Seventy-One Thousand Two Hundred Sixty Dollars ($2,471,260) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Prior Year Balance - Water 342,930 159,363 Prior Year Balance - Wastewater 619,578 428,730 Prior Year Bond Proceed Balance Series 2003 542,214 0 Prior Year Bond Proceeds - Wastewater 903,455 0 Trans from Water/Wastewater for Water 374,927 693,525 Trans from Water/Wastewater for Wastewater 105,595 389,642 Transfer from Impact Fee Reserve 275,000 500,000 Miscellaneous Receipts 50,000 0 Developer Contributions 0 300,000 Fund Totals 3,213,699 2,471,260 Expense Summary Items Water 1,125,844 597,903 Wastewater 1,450,034 1,366,773 Water Construction 49,728 103,199 Current Year Balance - Water 159,363 203,385 Current Year Balance - Wastewater 428,730 200,000 Fund Totals 3,213,699 2,471,260 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 8 2005-2006 BUDGET ORDINANCES - CONTINUED WATER/WASTEWATER CAPITAL ASSET RESERVE FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Six Hundred Two Thousand Four Hundred Forty Dollars ($602,440) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Source of Funds 2004-2005 2005-2006 Revised Budget Items Beginning Balance 2,366 2,366 Interest Earnings 0 74 Transfer from Water/Wastewater Fund 0 600,000 Total 2,366 602,440 Budget Summary Items Transfer to Water/Wastewater Fund 2,366 602,440 Total 2,366 602,440 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. WATER/WASTEWATER CONTINGENCY FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Four Hundred Thirty-Eight Thousand Five Hundred Ninety-Two Dollars ($438,592) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 648,495 425,752 Interest Earnings 18,937 12,840 Total 667,432 438,592 Budget Summary Items Transfer to Water 120,840 0 Transfer to Wastewater 120,840 0 Current Year Balance 425,752 438,592 Total 667,432 438,592 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 9 2005-2006 BUDGET ORDINANCES ELECTRIC REVENUE FUND REVENUE AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Sixty-Nine Million Two Hundred Fourteen Thousand Three Hundred Eighteen Dollars ($69,214,318) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Base Revenue 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 3,836,379 3,477,669 Direct Sales to Customer 55,905,288 57,157,712 Purchase Power Adjustment 4,215,909 6,561,106 Utility Tax 1,071,808 1,245,946 Miscellaneous Revenue 496,000 496,000 Rent Revenue 170,885 170,885 Duke Contract Revenue 1,072,405 0 Interest Earnings 120,000 105,000 Base Totals 66,888,674 69,214,318 Expense Summary 2004-2005 2005-2006 Revised Budget Items Purchased Power - DLD 40,077,733 42,636,070 Transmission and Distribution 2,969,521 3,202,268 Electrical Engineering 1,685,400 1,902,191 Administration 870,549 623,646 Meter Reading 272,845 298,703 Utility Tax 1,182,367 1,245,946 Allow for Uncollectibles 125,000 125,000 Retirees Health Care 421,778 527,487 Intrafund Service Fees 3,772,225 3,998,495 Line Subtotal 51,377,418 54,559,806 Other Expenses: Transfer To: Improvement and Extension 2,600,000 2,829,840 General Fund 5,463,008 5,716,956 Interest on Deposits 25,000 25,000 Debt Service 2,665,174 2,640,257 Post-retirement Benefits Reserve 200,000 100,000 Rate Stabilization Reserve 1,072,405 0 Workers Compensation Fund 8,000 0 Current Year Balance 3,477,669 3,342,459 Appropriation Subtotal 15,511,256 14,654,512 Base Totals 66,888,674 69,214,318 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 10 2005-2006 BUDGET ORDINANCES - CONTINUED ELECTRIC UTILITY IMPROVEMENT AND EXTENSION FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Five Million Five Hundred Twenty-Nine Thousand Two Hundred Dollars ($5,529,200) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 5,145,917 2,243,923 Interest Earnings 75,000 7,000 State Reimbursement for Projects 0 448,437 Transfer from Electric 2,600,000 2,829,840 Totals 7,820,917 5,529,200 Expense Summary Items Transmission and Distribution 1,633,066 1,473,114 Electrical Engineering 3,033,104 3,522,029 Transfer to Rate Stabilization 910,824 0 Current Year Balance 2,243,923 534,057 Fund Totals 7,820,917 5,529,200 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. ELECTRIC UTILITY CONTINGENCY FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating One Million One Hundred Fifty-Six Thousand Two Hundred Thirty-Nine Dollars ($1,156,239) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Beginning Balance 598,043 1,121,921 Interest Earnings 17,941 34,318 Transfer from Insurance Stabilization 505,937 0 Fund Totals 1,121,921 1,156,239 Budget Summary Items Carry Forward to Next Year 1,121,921 1,156,239 Fund Totals 1,121,921 1,156,239 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 11 ELECTRIC UTILITY DEPRECIATION RESERVE SOURCES AND USES OF FUNDS FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Fifteen Million Nine Hundred Nine Thousand Four Hundred Sixty-Seven Dollars ($15,909,467) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 14,995,831 15,445,706 Interest Earnings 449,875 463,761 Fund Totals 15,445,706 15,909,467 Budget Summary Items Current Year Balance 15,445,706 15,909,467 Fund Totals 15,445,706 15,909,467 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. 2005-2006 BUDGET ORDINANCES - CONTINUED ELECTRIC UTILITY FUTURE CAPACITY (RESTRICTED) FUND SOURCES AND USES OF FUNDS FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Eight Million Six Hundred Eighty Thousand Nineteen Dollars ($8,680,019) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 8,181,750 8,427,203 Interest Earnings 245,453 252,816 Fund Totals 8,427,203 8,680,019 Budget Summary Items Current Year Balance 8,427,203 8,680,019 Fund Totals 8,427,203 8,680,019 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 12 ELECTRIC UTILITY INSURANCE STABILIZATION FUND SOURCES AND USES OF FUNDS FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Two Hundred Forty-Two Thousand Five Hundred Eight Dollars ($242,508) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Source of Funds 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 720,069 235,508 Interest Earnings 21,376 7,000 Fund Totals 741,445 242,508 Budget Summary Items Transfer to Electric Revenue Contingency 505,937 0 Current Year Balance 235,508 242,508 Fund Totals 741,445 242,508 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. ELECTRIC UTILITY RATE STABILIZATION FUND SOURCES AND USES OF FUNDS FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Two Million Five Hundred Sixty-Five Thousand Eight Hundred Fifty Dollars ($2,565,850) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 493,178 2,491,165 Receipt from Electric Revenue Fund 1,072,405 0 Receipt from Electric I & E Fund 910,824 0 Interest Earnings 14,758 74,685 Fund Totals 2,491,165 2,565,850 Budget Summary Items Current Year Balance 2,491,165 2,565,850 Fund Totals 2,491,165 2,565,850 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 13 2005-2006 BUDGET ORDINANCES - CONTINUED WORKERS COMPENSATION FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating One Million Two Hundred Eighty-Five Thousand One Hundred Eighty Dollars ($1,285,180) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Cash Receipt Estimates 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 646,033 739,964 Interest Income 11,400 11,000 Premium from City 499,301 534,216 Transfer from General 16,000 0 Transfer from Electric 8,000 0 Fund Totals 1,180,734 1,285,180 Expense Summary Items Program Expenses/Supplies 300,000 400,000 Insurance 109,520 115,000 Contractual Services 31,250 28,000 Total Expenses 440,770 543,000 Current Year Balance 739,964 742,180 Fund Totals 1,180,734 1,285,180 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 14 TRANSPORTATION ENHANCEMENT GRANT FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Zero Dollars ($0) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Source of Funds 2004-2005 2005-2006 Revised Budget Items Grants Revenue 36,790 0 Fund Totals 36,790 0 Budget Summary Items Timothy Hanson House 36,790 0 Total Expenses 36,790 0 Fund Totals 36,790 0 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD. COMMUNITY TRANSPORTATION IMPROVEMENT FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Nine Hundred Nine Thousand Seventy-Five Dollars ($909,075) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Source of Funds 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 280,575 159,075 Grants Revenue 631,743 500,000 Transfer from General Fund 350,000 250,000 Interest Income 3,500 0 Fund Totals 1,265,818 909,075 Budget Summary Items Program Expenses 1,106,743 909,075 Current Year Balance 159,075 0 Fund Totals 1,265,818 909,075 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

First Reading - 2006 Budget Ordinances June 13, 2005 Page 15 2005-2006 BUDGET ORDINANCES - CONTINUED POST-RETIREMENT BENEFIT RESERVE FUND CASH RECEIPTS/REVENUES AND BUDGET FOR 2005-2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amounts hereinafter named aggregating Two Million Seven Hundred Thirty-Seven Thousand Five Hundred Sixty-Seven Dollars ($2,737,567) or so much as may be necessary are hereby appropriated from current revenues and other funds for the use by the several departments of the Municipal Government for the fiscal year beginning July 1, 2005, and ending June 30, 2006: Source of Funds 2004-2005 2005-2006 Revised Budget Items Prior Year Balance 1,423,854 2,366,570 Interest Income 42,716 70,997 Transfer from General Fund 600,000 150,000 Transfer from Water/Wastewater 100,000 50,000 Transfer from Electric 200,000 100,000 Fund Totals 2,366,570 2,737,567 Budget Summary Items Current Year Balance 2,366,570 2,737,567 Fund Totals 2,366,570 2,737,567 2. The City Manager is hereby authorized without further approval of the City Council to make inter-departmental transfers of up to five percent of the amount hereinafter appropriated to any department except that the City Manager shall not make any transfers prohibited by City Procedure #F306 and/or #F306ADD.

BE IT ORDAINED BY THE M AYOR AND COUNCIL OF THE CITY OF DOVER IN COUNCIL M ET: That the Pay for Perform ance Calculation W orksheet hereinafter is hereby adopted for the Fiscal Year Beginning July 1, 2005 and ending June 30, 2006: OVERALL SCORE ADJUSTM ENT Em ployee Em ployee Em ployee Em ployee FROM TO Below At Above Above M arket M arket M arket M aximum 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% ADOPTED: * C:\Documents and Settings\firmcmst\Local Settings\Temporary Internet Files\OLK3CE\PFP Salary Calculation Worksheet.wpd

FIRST READING DOWNTOWN DOVER BUSINESS IMPROVEMENT DISTRICT CASH RECEIPTS BUDGET FOR 2005-06 BID TAX REVENUE AND EXPENSES CHARGED AGAINST THIS REVENUE ADMINISTERED THROUGH MAIN STREET, INC. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amount hereinafter named aggregating Fifty thousand, two hundred and sixty-five dollars ($50,265) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by the City of Dover/Main Street, Inc. for the fiscal year beginning July 1, 2005, and ending June 30, 2006: REVENUE PROPOSED Tax Revenue $50,265 EXPENSES Salary and Personnel Costs $50,265 Page 1 of 1

FIRST READING ORDINANCE NO. AN ORDINANCE ADOPTING AND ENACTING A NEW CODE FOR THE CITY OF DOVER DELAWARE; PROVIDING FOR THE REPEAL OF CERTAIN ORDINANCES NOT INCLUDED THEREIN; PROVIDING A PENALTY FOR THE VIOLATION THEREOF; PROVIDING FOR THE MANNER OF AMENDING SUCH CODE; AND PROVIDING WHEN SUCH CODE AND THIS ORDINANCE SHALL BECOME EFFECTIVE. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER IN COUNCIL MET: Section 1. The Code entitled "Code of Ordinances, City of Dover, Delaware," published by Municipal Code Corporation, consisting of chapters 1 through 118, each inclusive, is adopted. Section 2. All ordinances of a general and permanent nature enacted on or before March 14, 2005, and not included in the Code or recognized and continued in force by reference therein, are repealed. Section 3. The repeal provided for in section 2 hereof shall not be construed to revive any ordinance or part thereof that has been repealed by a subsequent ordinance that is repealed by this ordinance. Section 4. Unless another penalty is expressly provided, every person convicted of a violation of any provision of the Code or any ordinance of the city shall be punished by a fine of not less than $25.00 nor more than $1,000.00. Each act of violation and each day upon which any such violation shall continue or occur shall constitute a separate offense. The penalty provided by this section, unless another penalty is expressly provided, shall apply to the amendment of any Code section, whether or not such penalty is reenacted in the amendatory ordinance. In addition to the penalty prescribed above, the city may pursue other remedies such as abatement of nuisances, injunctive relief and revocation of licenses or permits.

Section 5. Additions or amendments to the Code when passed in such form as to indicate the intention of the city council to make the same a part of the Code shall be deemed to be incorporated in the Code, so that reference to the Code includes the additions and amendments. Section 6. Ordinances adopted after March 14, 2005, that amend or refer to ordinances that have been codified in the Code shall be construed as if they amend or refer to like provisions of the Code. Section 7. This ordinance shall before effective _____________________________________ Passed and adopted by the city council this day of , . ___________________________________ Mayor ATTEST: ____________________________________ City Clerk