10. New Business a. Discussion of changing meeting days and times. 11. Commissioner Comments 12. Adjournment

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1 Board of Commissioners 229 Rehoboth Avenue P.O. Box 1163 Rehoboth Beach, Delaware City of Rehoboth Beach Telephone THE COMMISSIONERS OF REHOBOTH BEACH Workshop Meeting City Hall Commissioners Room, 2nd Floor Monday, December 4, 2017; 9:00 a.m. 1. Call to Order 2. Pledge of Allegiance 3. Roll Call AGENDA 4. Correspondence (relating to agenda items only) Page Correspondence (Voting) - 04 December Correspondence (Meeting Days) - 04 December Public Comment - Anyone from the public wishing to speak shall do so at a microphone, stating their name and address. Comments are limited to three (3) minutes and Commissioners do not respond to public comments. 6. Presentations a. Cape Henlopen School District - Update on Rehoboth Elementary School project. b. VIA - Placement of historical marker at the "Children's Fishing Bridge". 7. City Manager s Report 8. Committee Reports a. Boardwalk and Beach Committee - Commissioner Mills Beach and Boardwalk Committee Notes - 04 December Agenda Public Discussion - Public comment regarding agenda items will be heard after initial Commissioners' discussion. 9. Old Business a. Update on City Hall expenditures b. Update on Ocean Outfall Project c. Continued discussion on proposed Charter changes as related to elections and voting rights. Draft Charter Amendments - Election Sections Redline - 02 December 2017 Memo re Intent of Proposed Voting and Elections Charter Amendments - 02 December

2 10. New Business a. Discussion of changing meeting days and times. 11. Commissioner Comments 12. Adjournment For additional information or special accommodations, please call (302) (TDD accessible) 24-hours prior to the meeting. amw: 11/27/17; posted 11/27/17

3 Dear Mayor and Commissioners: I am writing against the proposal to give voting rights to LLCs. The Mayor and Commissioners already are not doing enough for the residents,like me, who are having to deal with the noise, trash, invasive parking and trash produced by renter from these LLC commercial investment properties in our residential neighborhoods. If you give all of these LLC investors the right to elect you to the City Council, then you will have no reason to do the right thing for the residents. The situation now leaves the resident at the mercy of the occupants of these LLC business...no peace in one's own home. There are many pressing issues facing the city that need to be dealt with...why are you wasting time and money on this issue? Sincerely, Dorothy A. Blakely 337 Laurel Street Rehoboth Beach,DE

4 Rehoboth Beach Commissioners, My wife and I have been property owners in this wonderful "town" since the mid-seventies. We want to keep Rehoboth Beach the "town" it has been and currently is. Please vote against the charter amendment giving LLCs the right to vote. Too many questions have been raised, and not answered, about the impact of this change. You have not explained what is the problem you are trying to fix. You are just bringing bad press to Rehoboth Beach and the threat of a lawsuit from the ACLU. Please vote no. Very respectfully, Drew and Susan Woodall

5 Dear Mayor and Commissioners, Thank you for holding the town hall yesterday. It was an eye opening experience for me and I appreciate you doing it. I would like to finish my comments this time on some very positive aspects of the Charter changes and some others that I wish you would consider. Modern, forward looking communities continue to enact processes that make the voting process easier for their citizens from online registration, mail in ballots, no excuse absentee voting, etc. It would be a plus for Rehoboth Beach that they have put into place processes that make the voting process easier for domiciled residents. After all, they have the right to vote, for the rest of us in Rehoboth it s a privilege. We can start with the registration and purging process. 1- Purging and Registration of domiciled residents. Wouldn t it be easier, more efficient and cost effective to partner with the State of Delaware Election Office to register and purge residents domiciled in Rehoboth Beach? The State will send the city lists (on a computer disc, I believe) of all those registered in our election district. I suspect it wouldn t take but a few minutes, once the list is updated the first time, to pull out those that live within the city limits. The State will send the files as frequently as we would like. There are advantages to this, the State is confirming the identity and address of the registrant, and because they are part o a multistate system, also confirming that they are not registered elsewhere. If they are, the former state is contacted. They reach out to the voter and the voter is purged from the old list and confirmed in DE. Frank Cooper can personally verify this if you like. The State could also manage the purging process and again, send us the lists of those who are purged. 2- Non-resident property owners - Would still have to come with City Hall to register and we would have to manage purging. My understanding is that there is a current process in place for doing that. It could mimic the State s so there is symmetry between the resident and non-resident processes for purging. 3- No Excuse Absentee Voting - I don t know if no excuse absentee voting requires a charter change, but if it does, we should do so. If a code change, or simply a process change we should do that too. 3- Referendums - We need to fix the portion of the charter and any relevant code sections that allows multiple voting by the same person, representing themselves and an entity, in referendums for bonds, construction, etc. We also need to ensure that if the decision is to continue to allow entity voting for bond issues and borrowing, that better documentation than a drivers license is required day residency. - It s already state law and the charter should reflect that. 5- Travel reimbursement - The suggested changes to bring that section into the twenty first century should be made. Thank you for your attention to this matter, Jan Konesey 42 Oak Ave.

6 Dear Elected Official, I am the current homeowner of 313 Stockley Street. I am writing you to inform you that I oppose any changes to the voting charter that would allow LLCs the the ability to vote in our local city elections. I am not sure what benefit the city would gain by granting LLCs to vote. LLCs interest in the city is strictly financially and not the quality of life or long term success of the city. People who have LLCs in Rehoboth Beach, reside outside Rehoboth Beach in their own city/town and advocate to maintain it as residential community. LLC ONLY see Rehoboth Beach as a business to make financial gains. Once Rehoboth Beach is not financial beneficial to an LLC, they would leave the city and relocate; however, if they had influence over elections and ordinances the lasting effect would be forever, long after they leave. Current residents who are property owners have a much more altruistic desire to see Rehoboth Beach continue to grow as a strong true beach community for a life time, not just for as long as it is financially beneficial. I am 100% any changes in to the voting charter that would allow LLCs within the city to vote in our local elections and will vote against any elected official in the future who supports such changes. If you would like to discuss this matter further, I can be reached at Thank you, Philip Santoro 313 Stockley Street Rehoboth Beach, DE 19971

7 Dear Mayor, I wish to be on the record against the pending proposal to allow the owners of limited liability companies to vote in Rehoboth Beach elections. As I understand the current proposal, both the landlords in commercial areas as well as non-resident and foreign investors in the residential neighborhoods will be given the right to vote. There has been no explanation or justification for why you are pushing this proposal all of a sudden. There has been no attempt to really quantify how many voters you are going to be adding to the voting rolls--estimates range from dozens to more than a thousand. As was evidenced at the town hall meeting this weekend, clearly, more study is needed and transparency given. John Welch 315 Stockley St.

8 From: Date: Sunday, December 3, 2017 at 12:10 PM To: Krys Johnson Subject: Drop the vote for LLC plan Mayor, Commissioners, Solicitor, and Town Manager: It is our understanding you will have a workshop meeting tomorrow morning. We are writing to suggest at that time that political prudence now dictates you at take a win instead of digging yourself deeper into a hole. Announce at that meeting you have permanently dropped the plan to extend voting rights to LLCs. Over thirty people testified against the idea at the town hall meeting yesterday, with only two in favor. The vociferous tone of the assembly strongly supported dropping the measure. So did letters, 44 to 8 against LLCs. It gets worst. It now appears all LLCs and other shelters in Delaware are under new and sweeping investigations by the SEC and other federal justice and investigatory agencies as fronts for drug money laundering, illicit and criminal foreign investment, and in one current case involving indicted Trump campaign officials laundering overseas fees. That would seem to be just the start of it; and the pro-llc cause was not helped in Rehoboth when city officials admitted they did not even know whether the proposed new voting measure could allow foreigners to vote and even run for office. Rehoboth does not need the embarrassment, distraction and legal expense of injecting itself into an expanding legal, political and criminal morass. We are writing as homeowners of two decades to support the notion that much always needs to be done to move Rehoboth forward in a positive fashion. A public announcement tomorrow you have dropped the plan permanently will help you get back on track with Rehoboth citizens. Respectfully, Stan and Betsey Heuisler 81 Henlopen Ave. December 3, 2017

9 Mayor and Commissioners of Rehoboth Beach: Listed on the upcoming workshop meeting agenda on Monday is a discussion of changing meeting days and times. We were told at Saturday s public meeting that you are considering moving the scheduled monthly meetings from Friday to Monday evenings. We regard change as a good thing except for when it is for the worse, and this would be one of those instances. Unless you have some compelling reason otherwise, we believe more people are available to attend meetings on Fridays than on Mondays, especially for those who travel from other locales to be at the beach on the weekends. Which is why it was changed to Friday back in the olden days. With your pledge of openness and transparency, please do not consider inhibiting citizens from attending public meetings. Thank you for your consideration. Kate and Bunky Markert 520 New Castle St. Ext.

10 DATE: November 20, 2017 FROM: Commissioner Stan Mills TO: Board of Commissioners RE: Formation of a new Beach and Boardwalk Committee The Boardwalk and Beach Committee is a new committee for the City of Rehoboth Beach although earlier there was a Boardwalk Committee which held its first meeting in February 2008 and was decommissioned in October History of the original Boardwalk Committee. The Boardwalk Committee was advisory to the Board of Commissioners. The mission statement developed in 2008 was that The committee examines issues and questions related to maintaining the Boardwalk as a major asset. The committee develops and monitors short and long range maintenance programs and includes making recommendations on total replacement of the Boardwalk structure. The committee also evaluates and makes recommendations for dealing with associated issues including but not limited to lighting, footbath locations, sand management and allowance or not of vehicles on the Boardwalk. Eligible members were to be selected from property and business owners, residents. Those living on or doing business on the Boardwalk were main targets of membership. One commissioner was to be chairperson. The membership of the Boardwalk Committee remained consistent through the life of the committee: 1. Commissioner Stan Mills, Chair 2. Mayor Sam Cooper 3. Commissioner Kathy McGuiness 4. Bill Bahan, City resident 5. Mark Henschke of Funland 6. Mauria Stein of Stuart Kingston The impetus for the formation of this committee was that the Boardwalk was deteriorating and a major rebuilding of the Boardwalk was being contemplated. When it was decided that total Boardwalk reconstruction would be a reality the committee was able to provide valuable input on the design criteria for the new Boardwalk. Please also see committee sunsetting letter at the bottom of this document. As chair of the new Beach and Boardwalk Committee, I envision a series of steps to fulfill before we conduct our first meeting. 1) Develop an initial draft committee mission statement. Solicit input from the Mayor and Commissioners. 2) Advertise and solicit committee members. Solicit input from the Mayor and Commissioners.

11 3) Develop a slate of committee members. Seek approval of the Mayor and Commissioners of committee makeup. 4) Conduct first meeting. Agenda in part to seek member and citizen input to finalize a mission statement and to develop a list of issues for the committee to address. Letter from Stan Mills to Boardwalk Committee to sunset committee. Dear Bill, Kathy, Mauria, Mark and Sam, October 17, 2011 As you know the Boardwalk Committee was formed by the Board of Commissioners at a time when the idea of Boardwalk replacement over multiple years was germinating. Who would have thought our mile-long Boardwalk would be replaced in entirety from the sand up with a stronger structure and enhanced amenities after only two off-seasons? Your participation on the Boardwalk Committee was valuable in developing the design specifications for the Boardwalk. A Boardwalk that, by the way, has been recognized recently not just once but twice: By National Geographic naming Rehoboth Beach s Boardwalk as one of the top ten boardwalks in the U.S. and by Coastal Living magazine which listed Rehoboth Beach s Boardwalk as one of their top ten favorite boardwalks in the U.S. When the Boardwalk Committee was formed there was thought it might have a limited shelf-life. Now with the Boardwalk reconstructed and in a maintenance phase, and with no significant recommendations outlined within the City s Comprehensive Development Plan for the committee to address, and with committee appointments on this coming Friday s Board of Commissioners meeting agenda, by way of copying the Board of Commissioners, I am recommending that they give consideration to sunsetting this committee and give due thanks to its members for a job well done. I believe future boardwalk issues can be addressed by the Board of Commissioners while larger issues related to the Boardwalk and/or beach, should they crop up, could be directed to a newly formed ad hoc committee for which I would hope the Board of Commissioners would give the past committee members first consideration as new committee members. I recognize your time commitment and I again thank you for having participated on this committee. You can all be proud of your input toward creating an award winning boardwalk! Thank you. Regards, Stan Cc: Mayor Cooper and Commissioners

12 Version: November 18, 2017 Author: G. Mandalas STRUCTURE OF THE GOVERNMENT Section 3. (a) The government of The City and the exercise of all power conferred by this Charter, except as otherwise provided herein, shall be vested in The Commissioners of Rehoboth Beach. The Commissioners of Rehoboth Beach shall consist of seven (7) members, to be chosen as hereinafter provided, all of whom shall be citizens of the United States of America. One of said Commissioners shall have the title of Mayor of The City of Rehoboth Beach, with duties hereinafter to be prescribed, and who shall also be President of The Commissioners of Rehoboth Beach. Each of the seven (7) Commissioners of Rehoboth Beach, at the time of the approval of his the Commissioner s qualifications by The Commissioners as hereinafter provided or at the time of his the Commissioner s appointment as the case may be, shall have attained the age of twenty-one (21) years of age. Not less than three of the Commissioners shall be designated resident Commissioners. A resident Commissioner shall be a bonafide resident and domiciliary of the City. The Commissioner with the title of Mayor of the City of Rehoboth Beach shall also be a bona-fide resident and domiciliary of the City and shall have been domiciled in the City of Rehoboth Beach for a period of at least twelve (12) months immediately preceding the date of election. The other three Commissioners must either have the qualifications of a resident Commissioner as defined above (i.e. a bona-fide resident and domiciliary of the City) or be a freeholder of real estate located within The City. If any of the Commissioners or the Mayor fails to retain his the qualifications as aforesaid during the term of his office, he that Commissioner or Mayor shall ipso facto vacate his office. The Commissioners shall be judges of the qualifications of their members. ELECTION IN GENERAL Section 4. Ballots may be cast in person or by absentee ballot in all elections. Absentee voting shall be in compliance with the applicable provisions of Title 15 of the Delaware Code. ELECTIVE OFFICES Section 5. (a) The six offices of Commissioners of Rehoboth Beach and the office of Commissioner of Rehoboth Beach with the title of Mayor of the City of Rehoboth Beach, with duties hereinafter to be prescribed, shall be elective. All other offices shall be appointive and the person or persons filling such appointive offices shall be appointed by the Commissioners of Rehoboth Beach in the manner hereinafter to be prescribed. Six offices of Commissioner of Rehoboth Beach shall be for a three year term. The office of Commissioner of Rehoboth Beach with the title of Mayor of the City of Rehoboth Beach shall be for a three year term and in every event that a person shall be nominated to this office, the ballots shall not only specify that he the individual seeks the Office of Commissioner of Rehoboth Beach, but also that he the individual seeks that office with the title of Mayor of the City of Rehoboth Beach, with duties hereinafter to be prescribed. (b) The qualifications for the office of Commissioner of Rehoboth Beach as well as the office of Commissioner of Rehoboth Beach having the title of Mayor of the City of Rehoboth Beach shall be as set forth in Section 3 of this Charter. 1

13 Version: November 18, 2017 Author: G. Mandalas (c) In the case of a vacancy created in any office of Commissioner of Rehoboth Beach, or in the office of Commissioner of Rehoboth Beach having the title of Mayor of the City of Rehoboth Beach, either by death, resignation, loss of residence in the City of Rehoboth Beach, or other disqualifying event, or otherwise, The Commissioners of Rehoboth Beach shall fill such vacancy for the residue of the whole term. (d) Aside from loss of residence, as in those instances specified in Section 3 of this Charter, if any elected officer be found guilty of any felony, he the elected officer shall forthwith be disqualified to act as such officer and he the elected officer shall, ipso facto, vacate his the elective office, which office shall be filled by the Commissioners of Rehoboth Beach as in the case of other vacancies. (e) Each non-resident Commissioner shall receive an allowance for every mile necessarily driven from his the Commissioner s permanent home to Rehoboth Beach in order to attend any meeting of the Commissioners of Rehoboth Beach or the meeting of any committee of which he the non-resident Commissioner is a member; provided however, that no such allowance shall be paid for any meeting attended prior to September 1, 1974, said amount per mile to be the same as that permitted to be assessed by the Sheriff of Sussex County for the serving of papersthe standard mileage rate set annually by the Internal Revenue Service. NOMINATIONS TO ELECTIVE OFFICES Section 6. (a) The mode of nomination of candidates for elective offices in the City of Rehoboth Beach shall be by petition, signed by not less than ten nor more than twenty-five qualified electors of the City and filed with the Secretary of the Commissioners of Rehoboth Beach, on or before 12:00 noon on the first Saturday Monday in June of each year preceding the Annual Municipal Election. (b)whenever a petition nominating a person for the office of Commissioner of Rehoboth Beach, or the office of Commissioner of Rehoboth Beach who shall have the title of Mayor of the City of Rehoboth Beach, shall have been filed as above prescribed, the name of such person shall be printed on the ballot for the regular municipal election as a candidate for the office for which he the person was nominated; provided, he the person possesses the qualifications of an incumbent of that office as prescribed by this Charter. The Commissioners of Rehoboth Beach shall be judge of his the person s qualifications as prescribed by this Charter and, at the regular meeting in June between the hours of 8 and 10 P.M., The Commissioners of Rehoboth Beach shall sit in open meeting to judge the qualifications of candidates so nominated. (c) No nominating petition shall designate more than one person to be voted for as a Commissioner of Rehoboth Beach, or as Commissioner of Rehoboth Beach with the title of Mayor of the City of Rehoboth Beach. (d) No qualified elector shall sign the nominating petition of more candidates than there are elective offices to be filled at such regular municipal election. Each qualified elector signing such petition shall also state whether he the qualified elector signed such petition as a freeholder or as a leaseholder or as a resident. (e) There must be attached to each nominating petition an affidavit of the circulator thereof stating: the number of signers; that each signature appended thereto was made in his the circulator s presence; that each signature is the genuine signature of the person whose name it purports to be; and that all of said signers are entitled to vote at the regular municipal election referred to. 2

14 Version: November 18, 2017 Author: G. Mandalas The form of the nominating petition shall be substantially as follows: We, the undersigned, electors of the City of Rehoboth Beach, hereby nominate... for the office of... to be voted for at the regular municipal election to be held in said City, on the... day of... in the year...; and we individually certify that we are qualified to vote for a candidate for the office named, and that we have truly designated the capacity in which we have signed this petition as such qualified voter. Name Freeholder Resident of Delaware & Rehoboth (space for signatures) State of Delaware: SS Sussex County:... being duly sworn (or affirmed) deposes and says that he the individual is the circulator of the foregoing petition paper containing... signatures and that the signatures appended thereto were made in his the circulator s presence and are the signatures of the persons whose names they purport to be, and that he the circulator verily believes the status of each signer thereof to be truly stated and that all of said signers are entitled to vote at the said regular municipal election referred to in said paper.... Circulator SUBSCRIBED AND SWORN TO (or affirmed) before me this... day of, A.D Notary Public MANNER OF HOLDING ELECTIONS Section 7. (a) Annual Municipal Elections shall be held on the second Saturday in the month of August from 10:00 in the morning, prevailing time, until 6:00 in the evening, prevailing time, at such public place or places as shall be determined by the Commissioners of Rehoboth Beach, due notices of which shall be given in compliance with the applicable provisions of 15 Del. C et seq. In the event there is no contest for any of the several offices in any year, the polls shall remain open for only one hour, commencing at 10:00 a.m. in the morning, prevailing time and closing at 11:00, prevailing time, on the second Saturday in August. Persons in the polling place at 6:00 in the evening shall be entitled to vote even though such votes may be cast after 6:00 in the evening, prevailing time. (b)voting Machines shall be utilized during Annual Municipal Elections in compliance with the applicable provisions of 15 Del. C et seq. (c)every Annual Municipal Election shall be held under the supervision of the Election Officials. The Election Officials shall consist of one (1) Inspector of the Election and such Officers of the Election as shall be appointed by the Commissioners of Rehoboth Beach. The Inspector and such Officers constituting the Election Officials shall be qualified voters of the City of Rehoboth Beach and shall be 3

15 Version: November 18, 2017 Author: G. Mandalas appointed for that purpose by the Commissioners at least two (2) weeks before such Annual Municipal Election. If, at the opening of the polls, the Election Officials shall not be present, then in such case the persons qualified to vote at such Annual Municipal Election and then present at the opening of the polls shall, by viva voce, select a qualified voter or voters to act as the Election Officials to fill such vacancies caused by the absence of the Election Officials. The Election Officials shall be judges of the Annual Municipal Election and shall decide upon the legality of the votes offered. The Election Officials shall keep a true and accurate list of all voters voting at the Annual Municipal Election. The Election Officials shall have the power to subpoena persons, and officers of the City of Rehoboth Beach and books, records and papers relative to the termination of the validity of any vote or votes offered. (d)at such annual election, every natural person, male or female, 1 who shall have attained the age of Eighteen (18) years and who shall be freeholder, as defined in this Chapter, in The City of Rehoboth Beach for a period of thirty (30) days 2 immediately preceding the date of such Annual Municipal Election or who shall be a leaseholder, as defined in this Chapter, in The City of Rehoboth Beach for a period of Six (6) months immediately preceding the date of such Annual Municipal Election, whether or not such person is a resident of the State of Delaware or of The City of Rehoboth Beach shall have One (1) vote, provided such person is registered on the "Books of Registered Voters" of The City of Rehoboth Beach as set forth herein. In addition, every natural 3 person, male or female, 4 who shall have obtained the age of Eighteen (18) years on the date of the Annual Municipal Election who shall be a bona fide resident of the State of Delaware and The City of Rehoboth Beach on the date of the Annual Municipal Election shall be entitled to one (1) vote provided such person shall be registered on the "Books of Registered Voters" of The City of Rehoboth Beach as set forth herein. The Commissioners of Rehoboth Beach shall provide Two (2) registers to be known as the "Books of Registered Voters" which are to be kept at the office of the City Manager. The Books of Registered Voters shall contain the following information for each registrant: The names of the voters arranged in alphabetical order, The permanent address of the voter, the local address of the voter, the birth date of the voter, the date the registrant became a resident of the State of Delaware, the date the registrant became a resident of the City of Rehoboth Beach, the date the registrant became a freeholder of the City of Rehoboth Beach and other pertinent information. No natural person shall be registered upon the Books of Registered Voters unless such person will have acquired the qualifications to vote in the Annual Municipal Election for the year in which such person registers. A person shall only be required to register One (1) time; provided however, that if a registered voter fails to vote in Two (2) consecutive Annual Municipal Elections in which there is a contest, the City may send a voter verification request by forwardable first-class mail to the his name shall be removed from the Books of Registered Voters and notice sent to said registered voter at his the voter s last known address asking the voter to sign a return card and: (1) authorize cancellation of their Rehoboth Beach voter registration because they are no longer eligible to vote as a resident, Freeholder, or Leaseholder in Annual Municipal Elections, or (2) confirm that the voter continues to be eligible to vote in Annual Municipal Elections. The City, upon receipt of the returned notice and in accordance with the response, shall: (1) cancel the person s registration, or (2) update the person s voter registration record with any new information and certify the person remains eligible to vote. Sixty days following a voter verification mailing, the City shall place all persons who did not reply to the voter verification request into inactive status. A person shall be returned to active status if the person subsequently returns the return card indicating the person continues to be eligible to vote in Annual Municipal Elections, or if the person votes in an Annual Municipal election while in inactive status. The City shall remove from the Books of Registered Voters any person who remains in inactive status for two consecutive Annual Municipal 1 The phrase male or female is unnecessary. 2 This edit reduces the period of time a natural person must be a freeholder to be eligible to register to vote. The period of time is reduced from six months to thirty days. 3 This edit distinguishes a natural person from an artificial entity. 4 The phrase male or female is unnecessary. 4

16 Version: November 18, 2017 Author: G. Mandalas Elections in which there is a contest. by registered mail with return receipt requested advising that his name has been removed from the list of registered voters and that it will be necessary to register again in order to be eligible to vote in the Annual Municipal Election. 5 The Books of Registered Voters shall be maintained at the office of the City Manager and shall be conclusive evidence of the right of any person to vote at the Annual Municipal Election. A person may register at the Office of the City Manager during the regular business hours on any day until the close of business on the second Friday in June in any year thirty (30) days prior to the Annual Municipal Election. 6 As used in this Chapter "Freeholder" means : (1) a natural person who holds title of record to a fee simple estate or life estate in and to an undivided interest in real property in the City; or (2) a natural person who holds title of record to real property in the City as a tenant by the entirety; or (3) who is a natural person who has at least a fifty percent (50%) interest in a Limited Liability Company that holds title of record to a fee simple estate and to a one hundred percent (100%) undivided interest in real property in the City; 7 or (4) a natural person that holds title of record to real property in the City through a valid revocable trust where the natural person is both grantor/settler and trustee of a the valid revocable trust to which real property located within the City has been conveyed, provided that a copy of the trust document identifying a grantor/settler and trustee is on file with the City. "Real Property" includes condominiums created under the Delaware Unit Property Act or the Delaware Uniform Common Interest Ownership Act 8. Where a natural person is eligible to vote as a Freeholder only by holding a fifty percent (50%) ownership interest in a Limited Liability Company, such person shall provide the following records confirming the eligibility qualifications provided herein: 9 (1) The Limited Liability Company s Certificate of Formation; and (2) The page or pages of the Limited Liability Company s Operating Agreement demonstrating that the natural person has at least a fifty percent (50%) interest in the Limited Liability Company; and 5 This edit discontinues the current requirement that a person is removed from the Books of Registered Voters if they fail to vote in two consecutive annual municipal elections. Note that the National Voter Registration Act of 1993 permits the removal of registered voters if the person has not voted in two federal elections and fails to respond to a notice. Section 8, National Voter Registration Act of The U.S. Supreme Court has recently agreed to hear an Ohio case that challenges the practice of purging voters from the registration list after two years of inactivity. Husted v. A. Philip Randolph Institute, No The Supreme Court was scheduled to hear oral argument on November 8, 2017, but the argument has been removed from the calendar and no new date has been publishd. The State of Delaware removes persons from the voter registration list when they have been placed on inactive status and then fail to vote in two consecutive general elections. 15 Del C. 1704(g). The State Code on Municipal Elections (15 Del C et seq.) does not specifically address voter purging. 6 This edit brings the Charter into compliance with State law, which prohibits a registration cutoff date more than 30 days prior to the annual election. 7 This edit classifies a natural person as a freeholder when that person owns at least a 50% interest in a qualifying artificial entity. Note that the person not the artificial entity is classified as a freeholder. 8 The edit recognizes that amendments to the Delaware Code established the Delaware Uniform Common Interest Ownership Act as the current Act under which condominiums are created. 9 This provision is intended to create a mechanism to confirm and document a person s status as a freeholder when that status is established through an ownership interest in a Limited Liability Company. 5

17 Version: November 18, 2017 Author: G. Mandalas (3) The deed of record confirming that the Limited Liability Company holds title of record to a fee simple estate and to a one hundred percent (100%) undivided interest in real property in the City As used in this Chapter "Lease" means a valid lease to real property in the City for a term of at least ten (10) years which lease is recorded in the Office of the Recorder of Deeds in and for Sussex County and upon which real property is erected an improvement having an assessed valuation of at least one thousand dollars ($1,000.00) as shown by the records of the City of Rehoboth Beach. 10 As used in this Chapter "Leaseholder" as used in this Chapter means: an individual (1) a natural person holding title to an undivided interest in a lease; or (2) a natural person who holds title to a lease as a tenant by the entirety. As used herein "resident" shall mean an individual actually natural person residing and domiciled in the City of Rehoboth Beach for a period of at least thirty (30) days6 months 11 immediately preceding the date of the election. As used herein domicile shall mean the place where a person has their true, fixed, permanent home, and principal establishment, and to which, whenever the person is absent, the person has the intention of returning, and where the person exercises their political rights. 12 These provisions shall be construed in accordance with the principle of "one person, one vote": If a voter is entitled to vote by virtue of being both a resident of the City and a Freeholder, the voter is entitled to only one vote; If a voter is entitled to vote by virtue of being both a resident of the City and a Leaseholder, the voter is entitled to only one vote; If a voter is entitled to vote by virtue of being both a Freeholder and a Leaseholder, the voter is entitled to only one vote; if a voter is entitled to vote by ownership of two or more parcels of real property, the voter is entitled to only one vote. 13 (e)in the event of a challenge to the identity or qualifications of a voter, the Inspector of the Election shall hear and decide the challenge. (f) Upon the close of the election, the votes shall be read and counted publicly and the person having the highest number of votes for each office shall be declared, by the Election Officials, to be duly elected, and such person shall continue in office during the terms for which they were chosen, or until their successors are duly elected or appointed and qualified. (g)in the event of a tie vote for any office, the Election Officials shall determine the tie by lot. (h)the Election Officials, as soon as possible after the polls have closed and the results announced, shall deliver all election documents, envelopes, and absentee ballots to the Board of Elections. The Board of Elections shall secure the documents, envelopes, and absentee ballots until such time that they need to canvass the election. 10 This edit requires that leaseholders provide a copy of the lease to the City for confirmation of leaseholder status but removes the requirements that the lease must be recorded with the Recorder of Deeds in Sussex County, and also removes the requirement that the lease must be for at least ten years, and also removes the requirement of a $1,000 improvement on the property. 11 This edit makes the City Charter consistent with current Delaware law. 12 This edit adds a definition of domicile that has been used in United States case law. In re Garneau, 127 F. 677 (7th Cir. Ill. 1904). 13 This edit is intended to make overwhelmingly clear that the principles of one person, one vote are to be exercised. 6

18 Version: November 18, 2017 Author: G. Mandalas (i) The Election Officials shall enter in a book, to be provided for that purpose, a minute of the election, containing the names of the persons chosen. They shall subscribe the same and shall give to the persons elected certificates of their election. The book, containing such matters, shall be preserved by The Commissioners and shall be evidence in any Court of Law and Equity. ANNUAL ORGANIZATION MEETING OF COMMISSIONERS Section 8. (a)the Commissioners of Rehoboth Beach, at the first regular meeting in September following the annual election, shall meet for the purpose of organization at the usual place for holding meetings of The Commissioners of Rehoboth Beach. The newly elected officers shall assume the duties of their respective offices, being first duly sworn or affirmed to perform their duties with fidelity, which oath or affirmation shall be taken before a Notary Public, a Justice of the Peace or by a holding-over member of The Commissioners. The newly elected Commissioner with the title of Mayor of The City of Rehoboth Beach shall assume the chair of the office of Mayor of The City of Rehoboth Beach. The Commissioners shall likewise select a Secretary from their own number to serve until the first regular meeting after the next succeeding election. They shall also choose an Assistant Secretary to serve as aforesaid, who may or may not be from among their own number and such other officers and employees as maybe determined to be necessary. (b)the Commissioners shall by ordinance fix the salaries and compensation of the employees, officers and agents of the City, and the time and manner of his or her, or their payment; Provided, that the salary or compensation of any such employee, officer or agent shall not be increased, during the term of said office should said appointment thereto be for a designated term. No officer, employee or agent of the City shall in any form have, take, or receive from the City any compensation, in any form, in addition to the salary or compensation fixed by The Commissioners. (c) The Commissioners shall cause to be kept a full and complete record of all officers appointed, and employees and agents hired by the City, containing the names of such officers, employees and agents, the dates of their employment, the salary and compensation to be by them received and the date of the termination of their services. In the event that they shall hold their office for an indefinite term, the record shall so state. REGULAR AND SPECIAL MEETING Section 9. (a) The Commissioners of the City of Rehoboth Beach shall hold meetings at the call of the Mayor (or majority of Commissioners). (b) The Commissioners of the City of Rehoboth Beach shall have the same power and authority to enact all ordinances, adopt all resolutions, pass all motions, make all orders and transact all business at such meeting, called as aforesaid. There shall be not less than one meeting held per month. (c) All meetings shall be subject to the provisions of Title 29, Chapter 100, Delaware Code. QUORUM Section 10. 7

19 Version: November 18, 2017 Author: G. Mandalas (a) A majority of the members elected to the Commissioners of Rehoboth Beach shall constitute a quorum; but a less number may adjourn from time to time and may compel the attendance of absent members in such manner and under such penalties as may be prescribed by ordinance adopted by a majority of the entire Commissioners. 8

20 City of Rehoboth Beach Intent of proposed Charter Amendments relating to voting and municipal elections November 18, 2017 On October 30, 2017, proposed Charter amendments relating to Rehoboth Beach municipal elections and voting were introduced at a regular meeting of the City Commissioners. This memorandum describes the intent of the proposed revisions. Each of the proposed revisions should be construed in accordance with principle of one person, one vote and to make that clear, the proposed amendments include the following provision: These provisions shall be construed in accordance with the principle of "one person, one vote": If a voter is entitled to vote by virtue of being both a resident of the City and a Freeholder, the voter is entitled to only one vote; If a voter is entitled to vote by virtue of being both a resident of the City and a Leaseholder, the voter is entitled to only one vote; If a voter is entitled to vote by virtue of being both a Freeholder and a Leaseholder, the voter is entitled to only one vote; if a voter is entitled to vote by ownership of two or more parcels of real property, the voter is entitled to only one vote. 1. Voter Purging Current: Section 7(d) of the Charter provides that when a registered voter fails to vote in two consecutive Annual Municipal Elections, the voter shall be removed from the Books of Registered Voters. Proposed: The proposed amendment would delete the current Charter provision and replace it with one that more closely resembles the State of Delaware s authorized purging system at Title 15, Section The proposed system would require the City to send a voter verification card to voters who have not voted in two consecutive Annual Municipal Elections. The voter may return the card authorizing the City to remove the voter from the Books of Registered Voters because the person is no longer eligible to vote, or return the card confirming the person remains eligible to vote. If the card is not returned after 60 days, the City may place the person on inactive status. If the card is subsequently returned confirming the person s voter eligibility or if the person votes while on inactive status, the person is returned to active status. If, however, a person in inactive status does not vote in two consecutive Annual Municipal Elections where there is a contest, the City will remove the person from the Books of Registered Voters. 1

21 Day Residency Requirement for Resident-Voters Current: Section 7(d) of the Charter defines resident, for purposes of qualifying to register to vote as resident, as an individual actually residing and domiciled in the City of Rehoboth Beach for a period of at least 6 months immediately preceding the date of the election. Proposed: The proposed amendment would change the residency requirement for residency voters from 6 months to 30 days. This proposed amendment would make the Charter consistent with current Delaware law Day Requirement for Non-Resident Freeholder and Leaseholder Voters Current: Section 7(d) of the Charter requires that a person qualify as a Freeholder or Leaseholder for a period of 6 months immediately preceding the Annual Municipal Election to vote. Proposed: The proposed amendment reduces the period of time a person must be a freeholder to be eligible to vote from 6 months to 30 days. The proposed amendment leaves unchanged the current requirement that a person must qualify as a Leaseholder for a period of 6 months immediately preceding the Annual Municipal Election to be eligible to vote. 4. Freeholder Voting by Natural Persons through a Limited Liability Company Current: The Charter does not currently provide for Freeholder voting by natural persons through a Limited Liability Company. Proposed: The proposed amendment would revise Section 7(d) of the Charter such that a natural person would qualify as a Freeholder, making the natural person eligible to register to vote, when the natural person has at least a fifty percent (50%) interest in a Limited Liability Company that holds title of record to a fee simple estate and to a one hundred percent (100%) undivided interest in real property in the City. The intent of this provision is to allow up to two natural persons who are not presently qualified to vote, to qualify as Freeholders. A person only becomes eligible to vote under the proposed provision when: (1) A Limited Liability Company owns a parcel of real property in the City; and (2) No other artificial entity or natural person owns any portion of the real property; and (3) The natural person owns at least 50% of the Limited Liability Company. 2

22 As verification, the proposal requires that the following records be submitted to the City: (1) The Limited Liability Company s Certificate of Formation; and (2) The page or pages of the Limited Liability Company s Operating Agreement demonstrating that the natural person has at least a fifty percent (50%) interest in the Limited Liability Company; and (3) The deed of record confirming that the Limited Liability Company holds title of record to a fee simple estate and to a one hundred percent (100%) undivided interest in real property in the City. The proposal also clarifies the existing voting as a Freeholder by a natural person that holds title of record to real property in the City through a valid revocable trust where the natural person is both grantor/settler and trustee of the valid revocable trust, provided that a copy of the trust document identifying a grantor/settler and trustee is on file with the City. If a person elects to register to vote under this provision, the same person would not be permitted to vote a second time even if they qualified to vote under a separate category. For example, if a natural person were a resident of the City and also qualified as a Freeholder because they owned 50% of a Limited Liability Company owning 100% of real property in the City, such natural person would only be permitted to vote one time. 3