CCW PACKET

COUNCIL COMMITTEE OF THE WHOLE AGENDA OCTOBER 29, 2019 - 6:00 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE PUBLIC COMMENTS ARE WELCOMED ON ANY ITEM AND WILL BE PERMITTED AT APPROPRIATE TIMES. WHEN POSSIBLE, PLEASE NOTIFY THE CITY CLERK (736-7008 OR E-MAIL AT CITYCLERK@DOVER.DE.US) SHOULD YOU WISH TO BE RECOGNIZED. SAFETY ADVISORY AND TRANSPORTATION COMMITTEE ADOPTION OF AGENDA 1. SIX MONTH REVIEW OF ST. FRANCIS AS THE CITY’S EMERGENCY MEDICAL SERVICES (EMS) PROVIDER (COMMITTEE ACTION NOT REQUIRED) 2. ADJOURNMENT OF SAFETY ADVISORY AND TRANSPORTATION COMMITTEE MEETING UTILITY COMMITTEE ADOPTION OF AGENDA 1. WAIVER FOR ANNEXATION REQUIREMENT 1140-1290 SOUTH BAY ROAD - WATER SERVICE REQUEST (STAFF RECOMMENDATION: WAIVING THE ANNEXATION REQUIREMENT OF 1140-1290 SOUTH BAY ROAD IN ORDER TO RECEIVE WATER SERVICE FROM THE CITY OF DOVER) 2. WATER / WASTEWATER RATE STUDY RESULTS AND RECOMMENDATIONS (STAFF RECOMMENDATION: AUTHORIZING THE CITY MANAGER TO BRING FORWARD THE REVISED RATES TO CITY COUNCIL FOR APPROVAL IN JANUARY 2020) 3. ADJOURNMENT OF UTILITY COMMITTEE MEETING

COUNCIL COMMITTEE OF THE WHOLE AGENDA - OCTOBER 29, 2019 Page 2 LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE ADOPTION OF AGENDA 1. AUTHORIZATION TO PURCHASE - REPLACEMENT OF 1997 PIERCE RESCUE (STAFF RECOMMENDATION: APPROVAL OF THE PURCHASE OF 2020 PIERCE RESCUE/PUMPER) 2. AMENDMENT TO KENT ECONOMIC PARTNERSHIP SERVICE AGREEMENT (STAFF RECOMMENDATION: AMENDING THE CURRENT AGREEMENT TO AMEND ARTICLE V. DURATION AND EXTENSION TO PROVIDE FOR AN ANNUAL RENEWAL WITH THE APPROVAL OF EACH FISCAL YEAR'S BUDGET) 3. ADJOURNMENT OF LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING ADJOURNMENT OF COUNCIL COMMITTEE OF THE WHOLE MEETING /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\COMMITTEE-AGENDAS\2019\10-29-2019 CCW AGENDA.WPD THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. PURSUANT TO 29 DEL. C. §10004(E)(2), THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS, WHICH ARISE AT THE TIME OF THE MEETING.

ACTION FORM PROCEEDING: Council Committee of the Whole (Utility) AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 10/18/19 PREPARED BY: Sharon J. Duca, P.E., Public Works Director SUBJECT: Waiver for Annexation Requirement 1140-1290 S. Bay Road – Water Service REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: City Manager EXHIBITS: Aerial Map, Letter of Intent EXPENDITURE REQUIRED: n/a BUDGET REMAINING: n/a FUNDING SOURCE (Dept./Page in CIP & Budget): n/a TIME TABLE: City Manager will notify the Dover Air Force Base staff within ten (10) days of Council approval. STAFF RECOMMENDATION: Staff recommends City Council waive for annexation requirement of 1140- 1290 S. Bay Road in order to receive water service from the City of Dover. BACKGROUND AND ANALYSIS The Dover Air Force Base (DAFB) is currently conducting investigations into the environmental impacts of the use of aqueous film forming foam (AFFF) for firefighting procedures on base. The contents of the AFFF included chemicals perfluorooctance sulfonate (PFOS) and perflurooctanoic acid (PFOA). These chemicals can be harmful to humans if ingested. The Environmental Protection Agency has published lifetime health advisories for these chemicals of 70 parts per trillion when found in drinking water. Samples by the DAFB of private wells on S. Bay Road in June 2019 found that the levels of PFOS and PFOA has exceeded 70 parts per trillion. The DAFB believes that the cause of these chemical levels is from their AFFF. The DAFB is currently providing alternative drinking water sources to the affected properties. Moving forward, the DAFB believes the best course of action is for these properties to be connected to the City of Dover’s water distribution system, which has not tested positive for PFOS or PFOA chemicals. Typically, the City of Dover would require annexation into the City limits when properties request to connect to our utilities. In this situation, the affected properties had a functional water source until circumstances out of their control impacted their drinking water. Allowing the future water connection to the City of Dover water distribution system will provide a safe and reliable water source for the property owners. Staff recommends that Council allow the unincorporated properties between 1140-1290 S. Bay Road to connect to the City of Dover water distribution system without being required to annex into the City.

Exhibit A Waiver for Annexation Requirement 1140-1290 S. Bay Road – Water Service 1140 1166 1200 1234 1238 1258 1278 1268 1284 1290 N

DEPARTMENT OF THE AIR FORCE 436T H CIVIL ENGINEER SQUADRON (AMC) Dover Air Force Base, Delaware 19902-5600 26 Sep 19 436 CES/CC 600 Chevron Ave Dover AFB DE 19902-5600 Ms. Donna S. Mitchell City Manager City Hall - 15 Loockerman Plaz.a Dover, DE 1990 I Dear Ms. Mitchell Thanks to Mr. Matt Harline a nd members of your Public Works and Planning Departments meeting with , members of my staff on August 26, 2019. In the meeting, the members discussed the possibility of connecting properties located on South Bay Road northwest of Dover AFB to the City of Dover public water supply. The intent of this follow-up letter is to provide background information and to formally request the City of Dover to move forward with planning for this activity. The Air Force is currently conducting investigations into environmental impacts from use of aqueous film forming foam (AFFF) for firefighting. Some form ulations of AFFF used on Dover AFB contained the chemicals perfluorooctane sulfonate (PFOS) and pertluorooctanoic acid (PFOA). While there are currently no drinking water standards for these chemicals, the Environmental Protection Agency has published lifetime health advisories (LHAs) for PFOS a nd PFOA in drinking water of70 parts per trillion (ppt). Results of samples taken in June 2019 from private domestic wells along South Bay Road northwest of Dover AFB identified four properties with PFOS and PFOA concentrations exceeding the LHA . T he source of the PFOS and PFOA is likely from an AFFF release location on Dove r AFB. Because of this, the Air Force is committed to providing an alternate drinking water source to these four affected properties. The Air Force believes the best course of action for the affected properties is to connect them to the City of Dover public water supply. However, I am not authorized to obligate the Air Force to pay for the connectio n. At this time, the A ir Force is reviewing whether it may design a nd pay for the construction of an extension to the existing City of Dover water main located on the east side of South Bay Road. Per preliminary discussions with your staff, the water main will need to be extended across South Bay Road, and continue south a long the west side of the road, to the southernmost affected property. T here are many details that need to be worked out, including initiation of annexation activities, coordination w ith other agencies such as the Delaware Department of Transportation, and property owner involvement. The A ir Force w ill work closely with C ity of Dover personnel and will keep you apprised regarding the determination of our ability to pay for the connections to the City of Dover public water supply. We appreciate your cooperation and assistance as we move forward w ith providing an alternative water supply to the affected properties on South Bay Road. Our primary point of contact for this activity is Mr. Joseph Kowalski. He can be contacted at 302-677-5540 or joseph.kowalski.8@us.af.mil. VHANCE V. VALENC IA, Lt Col, USAF Commander

ACTION FORM PROCEEDING: Council Committee of the Whole (Utility) AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 10/18/19 PREPARED BY: Sharon J. Duca, P.E., Public Works Director SUBJECT: Water / Wastewater Rate Study Results and Recommendations REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: City Manager EXHIBITS: Presentation EXPENDITURE REQUIRED: n/a BUDGET REMAINING: n/a FUNDING SOURCE (Dept./Page in CIP & Budget): n/a TIME TABLE: Public outreach will occur in Fiscal Year 2020, revised rates to be brought forward to City Council for approval in January 2020. STAFF RECOMMENDATION: Staff recommends City Council to authorize the City Manager to bring forward the revised rates to City Council for approval in January 2020. BACKGROUND AND ANALYSIS In Fiscal Year 2019, the Department of Public Works, Water and Wastewater Division operational budgets were approved to conduct a Water / Wastewater Rate Study. Requests for Proposals were solicited from qualified firms and the City of Dover entered into an agreement with NewGen Strategies and Solutions (formerly known as Municipal & Financial Services Group). The City of Dover has not altered the water or wastewater rates in over 5 years. As infrastructure improvement project costs continue to escalate, staff realized that the water and wastewater rates must be altered if the City wants to be fiscally responsible and maintain functioning water and wastewater infrastructure. The study investigated the operational and capital budgets of the Water Division, Wastewater Division and Water Treatment Plant Division housed within the Department of Public Works. The five (5) year Capital Improvement Plan was utilized to forecast future projects and the impacts to the funds. The following principles were used by the consultant to guide the rate study and were developed with the assistance of City staff: • The City’s water and sewer utilities must be financially self-supporting. It is assumed that the cost of operating and maintaining the water and sewer systems must be supported by the water and sewer fees and charges collected from customers with no support from other City funds. • The City should maintain reserves to provide for contingencies and unplanned expenses and to ensure that sufficient funds are generated each fiscal year to allow for appropriate system replacement. • Water and sewer rates and charges shall be kept as low as possible over time. It is possible to keep rates low for a period of time by not investing sufficiently in the maintenance of the water and sewer systems, but eventually the systems will deteriorate and require substantial investments leading to the need for significant and immediate rate increases. The assumption that the City will continually reinvest in the water and sewer systems to replace assets as they reach the end of their useful lives is built into the analysis and allows for timely and predictable rate increases. Staff has reviewed the recommended water and wastewater rate alterations provided by the consultant. Staff agrees with the recommendations and finds the rates sustainable and equitable. Staff will be bringing forward the revised rates to City Council for approval in January 2020.

October 29, 2019 City of Dover Water / Wastewater Rate Study Results and Recommendations Presentation to the City Council NewGen Strategies & Solutions ECONOMICS STRATEGY STAKEHOLDERS SUSTAINABILITY www. newgen strategies . net

Presentation Agenda • Firm Introduction • Revenue Requirements • Customer and Usage • Financial Plan and Rates • Customer Impacts • Discussion and Questions NEWGEN STRATEGIES AND SOLUTIONS, LLC 2

NewGen Strategies and Solutions, LLC • Consulting firm specialized in providing management and financial guidance to the municipal utility industry • Created in 2012 and merged with MFSG in July 2019 is now NewGen part of Municipal & Financial Services Group Strategies &Solutions • National presence with 43 expert and support staff in 9 offices across the country • 400+ clients across two Practices: – Energy (electricity and natural gas) Thoughtful Decision Making for Uncertain Times – Environmental (water, sewer, stormwater, solid waste) NEWGEN STRATEGIES AND SOLUTIONS, LLC 3

Revenue Requirements – O&M Expenses Water Operating Expenses Wastewater Operating Expenses $9.00 $9.00 Millions Millions 1.2% 1.2% 1.7% 1.2% 4.0% $8.00 $8.00 $7.55 $7.00 $7.00 $6.00 2.7% $6.00 2.6% 2.6% 5.6% 5.4% • Water Treatment Plant • Kent County Treatment Fees $5.00 $4.53 $5.00 • Water Fund Expenses • Wastewater Fund Expenses $4.00 $4.00 • Water Department • Wastewater Engineering $3.00 • Water Engineering $3.00 • Wastewater Department $2.00 $2.00 $1.00 $1.00 $0.00 $0.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2019FY 2020FY 2021FY 2022FY 2023FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 4

Revenue Requirements – Existing Debt $1.60 Millions % Change: 5.6% (0.1%) (0.1%) 0.2% $1.40 15.8% $1.20 $1.13 • Series 2018 Wastewater Revenue Bond $1.00 • Series 2018 Water Revenue Bond • Series 2013 Wastewater Revenue Bond $0.80 • Series 2013 Water Revenue Bond • Series 2011 Wastewater Revenue Bond $0.60 • Series 2010 Water Revenue Bond $0.40 • Series 2009 Wastewater Revenue Bond • Series 2000 Wastewater Revenue Bond $0.20 $0.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 5

Revenue Requirements – Capital Improvements Water System Projects: Wastewater System Projects: • Vehicles & Equipment • Vehicles & Equipment • Meter Reading - Radio Read Meters • Sanitary Sewer Video Kit • Bradford Street Water Main Improvement • Tar Ditch Interceptor Upgrade • William Street Water Main Improvement • Rolling Acres Pump Station Replacement • N. State Street Water Main Replacement • Turnberry Pump Station • Denney's Road Water Tower • Westover Pump Station & Force Main Upgrade • Bulk Water Station - William Street • Lepore Road Sanitary Sewer upgrade • Future Well Installation • Sliver Lake Pump Station Replacement • Wellhead Redevelopment • Various Pump Station Replacements • Water Quality Improvements • Lincoln Street Gravity Sewer Repair • Repairing Line Breaks • SCADA Equipment & Technology Upgrade • Treatment Plant Improvements • Inflow/Infiltration Removal/System Improvements NEWGEN STRATEGIES AND SOLUTIONS, LLC 6

Revenue Requirements – Capital Improvements $6.00 Millions Capital Financing Assumptions: $5.00 Water: • $12.4 million in cash funded $4.00 • Cash Funded Wastewater projects Projects • $6.9 million in debt funded • Cash Funded Water Projects water projects (2022 & 2023) $3.00 Wastewater: • New Wastewater Debt $2.00 • $10.4 million in cash funded projects • New Water Debt • $0.6 million in debt funded for $1.00 Wastewater Projects (2020) $0.00 • All debt @ 4.0% interest with 20- FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 year repayment NEWGEN STRATEGIES AND SOLUTIONS, LLC 7

Total System Expenses vs. Current Revenues Water System Wastewater System $12.00 $12.00 7.7% Millions Millions (5.0%) 4.3% (0.1%) 2.2% $10.00 21.2% (0.7%) - Cash Funded Capital Projects $10.00 $9.77 - - $8.31 Cash Funded Capital 6.4% - $8.00 (11.4%) New Debt Service $8.00 Projects (16.6%) - New Debt Service $6.00 Existing Debt Service - $6.00 - Existing Debt Service $4.00 Operating Expenses $4.00 - Operating Expenses $2.00 Revenue at Current Rates $2.00 - Revenue at Current Rates $0.00 $0.00 FY FY FY FY FY FY FY FY FY FY FY FY 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 8

Fund Balances Under Proposed Current Rates Water System Wastewater System $8.00 $8.00 Millions Millions $7.00 $7.00 $6.00 $6.00 $5.00 $5.00 - All Water Funds Balance - All Sewer Funds Balance - - $4.00 under Current Rates $4.00 under Current Rates Target Reserve Balance Target Reserve Balance $3.00 $3.00 $2.00 $2.00 $1.00 $1.00 $0.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 $0.00 FY 2019 FY 2020 FY 2021 FY 2022 -FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 9

Financial Plan – Percentage of Annual Revenue Increase Water System Wastewater System $12.00 $12.00 1.0% Millions 6.0% Millions 7.0% 7.0% $10.00 - Cash Funded Capital $10.00 - Cash Funded Capital - 6.0% 2.0% Projects Projects $8.00 7.0% 7.0% New Debt Service $8.00 New Debt Service - Existing Debt Service - Existing Debt Service - $6.00 - $6.00 Operating Expenses Operating Expenses $4.00 $2.00 Revenue at Current Rates - Revenue at Proposed Rates $4.00 $2.00 -- Revenue at Current Rates Revenue at Proposed Rates $0.00 $0.00 FY FY FY FY FY FY FY FY FY FY FY FY 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Note: Includes one time increase of $2.50 in water and wastewater flat fees in FY 2021 as well as Kent County pass-through rate increases. NEWGEN STRATEGIES AND SOLUTIONS, LLC 10

Fund Balances Under Proposed Financial Plan Water System Wastewater System $8.00 $7.00 Millions Millions $7.00 $6.00 $6.00 $5.00 $5.00 - All Water Funds Balance $4.00 - All Sewer Funds Balance - - $4.00 under Proposed Rates under Proposed Rates Target Reserve Balance $3.00 Target Reserve Balance $3.00 $2.00 $2.00 $1.00 $1.00 $0.00 $0.00 FY FY FY FY FY FY FY FY FY FY FY FY 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 11

Recommended Rates - Water Water Rates FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Water Flat Rate Increase 0.0% 100.0% 0.0% 0.0% 0.0% Water Unit Rates Increase 0.0% 7.0% 7.0% 6.0% 2.0% Monthly Flat Rate per Account $2.50 $5.00 $5.00 $5.00 $5.00 Inside City Customers Tier 1: 0 - 6,000 gallons $3.00 $2.49 $2.66 $2.82 $2.88 Tier 2: 6,001 to 100,000 gallons $3.00 $3.11 $3.33 $3.53 $3.60 Tier 3: Over 100,000 gallons $3.00 $3.74 $4.00 $4.24 $4.32 Outside City Customers Tier 1: 0 - 6,000 gallons $4.50 $3.74 $4.00 $4.24 $4.32 Tier 2: 6,001 to 100,000 gallons $4.50 $4.67 $5.00 $5.30 $5.40 Tier 3: Over 100,000 gallons $4.50 $5.60 $5.99 $6.35 $6.48 NEWGEN STRATEGIES AND SOLUTIONS, LLC 12

Recommended Rates - Wastewater Sewer Rates FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Sewer Flat Rate Increase 0.0% 100.0% 0.0% 0.0% 0.0% Sewer Unit Rate Increase 0.0% 7.0% 7.0% 6.0% 1.0% Sewer Groundwater Rate Increase 0.0% 7.0% 7.0% 6.0% 1.0% KCSA Rate Increase 10.3% 0.5% 0.5% 0.5% 0.5% Monthly Flat Rate per Account $2.50 $5.00 $5.00 $5.00 $5.00 Inside Sewer Rate per 1,000 gallons $2.65 $2.84 $3.03 $3.22 $3.25 Outside Sewer Rate per 1,000 gallons $3.98 $4.25 $4.55 $4.82 $4.87 Groundwater Rate per 1,000 gallons $1.50 $1.61 $1.72 $1.82 $1.84 KCSA Rate per 1,000 gallons $2.58 $2.59 $2.61 $2.62 $2.63 NEWGEN STRATEGIES AND SOLUTIONS, LLC 13

Sample Bill Comparison – 3,000 gallons/mo. (Dover Median) Average, $51 City of Seaford $32 $44 City of Milford $30 $30 City of Salisbury $15 $38 Town of Georgetown $23 $28 City of Newark $21 $24 Dover Recommended FY 2021 $12 $26 Dover Current FY 2020 $12 $23 Water Sewer $- $10 $20 $30 $40 $50 $60 $70 $80 NEWGEN STRATEGIES AND SOLUTIONS, LLC 14

Customer Impacts – Commercial (21k gal/yr.) Total Annual Water and Sewer Cost $400 $357 $360 $335 $347 $343 $350 $300 - $264 $250 $200 $150 $100 $50 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 15

Customer Impacts – Residential w/ Irrigation (35k gal/yr.) Total Annual Water and Sewer cost $600 $515 $520 $498 $491 $500 $479 $401 $401 $400 $300 $200 $100 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 16

Customer Impacts – Residential (38k gal/yr.) Total Annual Water and Sewer cost $600 $549 $554 $509 $523 $500 $430 $430 $400 $300 $200 $100 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 17

Customer Impacts – Retail (219k gal/yr.) Total Annual Water and Sewer Cost $3,000 $2,594 $2,519 $2,624 $2,547 $2,483 $2,413 $2,500 $2,363 $2,297 $2,191 $2,191 $2,000 $1,500 $1,000 $500 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 18

Customer Impacts – Gas Station (780k gal/yr.) Total Annual Water and Sewer Cost $10,000 $8,931 $8,794 $9,037 $8,898 $9,000 $8,538 $8,408 $8,110 $7,989 $8,000 $7,649 $7,649 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 19

Customer Impacts – School (1,051k gal/yr.) Total Annual Water and Sewer Cost $14,000 $11,992 $11,952 $12,135 $12,095 $12,000 - $10,886 $10,851 _ $11,462 $11,425 - - $10,000 $8,000 $6,000 $4,000 $2,000 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 20

Customer Impacts – Restaurant (2,286k gal/yr.) Total Annual Water and Sewer Cost $30,000 $25,943 S26 A 06 $26,254 $26,727 $24,790 $25,228 $25,000 $23,536 $23,945 $22,303 $22,303 $20,000 $15,000 $10,000 $5,000 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 21

Customer Impacts – Apartments (6,872k gal/yr.) Total Annual Water and Sewer Cost $90,000 $80,942 $78,683 $81,942 $80,000 $74,282 $77,296 $70,513 $73,330 $70,000 $66,925 $66,925 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 22

Customer Impacts – Laundromat (4,002k gal/yr.) Total Annual Water and Sewer Cost $50,000 $45,327 $46,813 $45,872 $47,388 $43 309 $44,711 $45,000 - - $41,114 S42 A 24 - ' - $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 23

Customer Impacts – Hospital (19,876k gal/yr.) Total Annual Water and Sewer cost $300,000 $250,000 $224,641 $235,582 $227,350 $238,509 $214,620 $224,941 $203,718 $213,364 $193,453 $193,453 $200,000 $150,000 $100,000 $50,000 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 24

Customer Impacts – Hotel (41,181k gal/yr.) Total Annual Water and Sewer Cost $600,000 $ $488,156 $ $494,223 $500,000 465,424 471,036 $444,661 $466,106 $422,073 $442,116 $400,000 $300,000 $200,000 $100,000 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 25

Customer Impacts – Industrial (64,592k gal/yr.) Total Annual Water and Sewer Cost $300,000 $277,564 $272,124 $250,000 $200,000 $150,000 $100,000 $50,000 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 26

Customer Impacts – Industrial (339,341k gal/yr.) Total Annual Water and Sewer Cost $1,600,000 $1,465,858 $1,437,123 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NEWGEN STRATEGIES AND SOLUTIONS, LLC 27

Thank you! Questions / Discussion Eric Callocchia, Executive Consultant ecallocchia@newgenstrategies.net NewGen 911-A Commerce Road Strategies & Solutions Annapolis, MD 21401 410-266-9101 ECONOMICS STRATEGY STAKEHOLDERS SUSTAINABILITY www. newgen strategies . net

ACTION FORM PROCEEDING: Council Committee of the Whole – Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: Fire/Robbins Hose DATE SUBMITTED: October 17, 2019 PREPARED BY: Chief Ronald Rhodes SUBJECT: Replacement of 1997 Pierce Rescue REFERENCE: Capital Investment Plan RELATED PROJECT: N/A REVIEWED BY: Donna Mitchell, City Manager EXHIBITS: Bid Page – Atlantic Emergency Solutions EXPENDITURE REQUIRED: $757,900 (est. $93,500 annual payments for 10 years) AMOUNT BUDGETED: $ 775,000 ( est. $95,600 annual payments for 10 years) FUNDING SOURCE (Dept./Page in CIP & Budget): Fire Department Budget TIMETABLE: Upon approval the Apparatus will be ordered. Estimated Delivery would be mid-2020. RECOMMENDED ACTION: Staff recommends approval of the purchase of 2020 Pierce Rescue/Pumper. BACKGROUND AND ANALYSIS In accordance with the CIP for fiscal year 2018/2019, the Robbins Hose Company is requesting the replacement of Rescue #1 a 1997 Pierce Rescue. The new apparatus will be a 2020 Pierce Rescue/Pumper, AKA Squad #1. The apparatus was bid on September 15, 2019 Bid #20-0003FD. The City received one bid from Atlantic Emergency Solutions on October 16, 2019, in the amount of $757,900. The apparatus will be financed with a ten-year bank qualified tax-exempt loan. Annual payments will be reflected in future budgets. A Bond Resolution will be presented to City Council prior to the apparatus delivery. The estimated price of the vehicles was budgeted at $775,000. The annual loan payments will be budgeted in future budgets. The Fire Chief will be present with the bid document.

BID PAGE Pierce Enforcer Pumper Base Price $ 757,900.00 121 Patriot Drive Middletown Delaware Toll Free: 800.442.9700 www.atlanticemergency com

ACTION FORM PROCEEDING: Council Committee of the Whole – Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: City Manager DATE SUBMITTED: October 17, 2019 PREPARED BY: Donna Mitchell, City Manager SUBJECT: Kent Economic Partnership Service Agreement REVIEWED BY: Donna Mitchell, City Manager EXHIBITS: Agreement for Economic Development Services EXPENDITURE REQUIRED: $50,000 annually AMOUNT BUDGETED: $ 50,000 (Mayor’s Budget – Economic Development line item) FUNDING SOURCE (Dept./Page in CIP & Budget): General Fund TIMETABLE: Upon approval RECOMMENDED ACTION: Staff recommends amending the current agreement to amend Article V. Duration and Extension to provide for an annual renewal with the approval of each fiscal year’s budget. BACKGROUND AND ANALYSIS On September 18, 2018, the City entered into an agreement with Kent Economic Partnership (KEP) for economic development services through a public-private partnership model. The agreement has a provision for the duration and extension of the agreement as follows. V. Duration and Extension This agreement shall be in effect from October 1, 2018, until September 30, 2019. If mutually agreeable to City Council and KEP, this Agreement may be extended. Such extension will be documented by written amendment, duly signed and dated by both parties. However, either party may terminate this contract due to non-fulfillment with 60 day’s prior written notice. Staff recommends changing this Article to read – This agreement shall be in effect from October 1, 2018, until September 30, 2019 renewed annually on October 1 each year as approved in the then current fiscal year budget. If mutually agreeable to City Council and KEP, this Agreement may be extended. Such extension will be documented by written amendment, duly signed and dated by both parties. However, either party may terminate this contract due to non-fulfillment with 60 day’s prior written notice. If City Council doesn’t want to make the amendment as suggested, then staff is requesting authorization to renew for one year.

C1t1 c>f D0v�1 RECEIVED JU 2 -1 2!fr AGREEMENT FOR ECONOMIC DEVELOPMENT SERVICES CITY MANAUERIM!\ YOR TH.IS AGREEMENT, made and entered into the Ji_ ""4ray.ot�Se_.11.+. 2018, t:>y and between THE CITY OF DOVER, DELAWARE, a Delaware Municipal Corporltfon (herein after called "City") ,. whose malling address i.s City Hall - 15 Loockerman Plazc;:1 located within Kent County and Dover, DE 19903, orgcmized and existing pursuant to the laws of the State of Delaware and the Kent Economic Partnership, a non�profitorganization (herein after called "KEP';) whose mailing address is 555 Bay Road, Dover, Delaware 19901. WJTNES$ETH '• THAT: WHEREAS, the City desires to acquire certain services from KEP in lieu of hiring additional permanent staff and expending additional City funds to accomplish these services; and .. WHEREAS, the KEP desires to expand the economic pro sperity of Kent County in its entirety and Dover through a public,-private partnership model that includes funding from private sources, other municipalities and Kent County Levy Court; and WHEREAS, KEP will in the coming year develop services and resources to serve the economic development needs of the entire Kent County community; NOW, THEREFORE, the parties hereto have agreed and do agree as follows: I. PURPOSE AND INTENT The purpose of this Agreement ls to procure certain economic development-related services for the City as hereinafter described and set out; to establish the methods, procedures, terms and conditions governing payment t:>y the City for such services; and, to establish other duties, responsibilities, terms and conditions mutually undertaken and agreed to by the parties hereto in consideration of the services to be performed and monies paid. 11. SCOPE OF SERVICES In consrderation for the payment of $50,000 ln accordance with Section Ill, the KEP shall provide the following economic development related services to the City and Kent County during the term of this agreement: a. KEP Bylaws provide City with the ability to participate in decision making, including at least one seat on the KEP Board of Directors and additional representation on other KEP committees, tr,:1sk forces and teams; b. KEP agrees to provide Citywith a breakdown of how the monies paid by the City to KEP ls being used; The KEP Financial Report is included ih the minutes and a copy of minutes will be sent to the City Manager. c. KEP agrees to develop a system for managing, tracking and communicating leads on economic development-related activities and share access to this system with City; d. City and KEP agree to work collaboratively to create and share a database of available commercial and industrial properties, buildings and sites.

e. KEP agrees to hold regular meetings between municipal and county Planners, Town and City Managers, local commercial real estate brokers, and other groups as may be determined for the purpose of encouraging economic development in Kent County; f. City and KEP agree t o hold quarterly meetings between the KEP Executive Director and the City Manager to provide status updates and get feedback; g. KEP's Executive Director Will provide a quarterly report to City detaillng publicly available information on KEP activity, leads, wins and plans for the upcoming period; h. KEP will provide City with quarterly financial reports and, when requested, presentations on KEP activity to the City Council. i. KEP and City will Jointly evaluate grants/loans/incentives related to economic development in Dover that will benefit both Kent County and the City. Ill. CITY RESPONSIBJUTIES As KEP provides the economic development related services outlined above, the City will support the work of KEP in the following ways: a. City will provide a prompt response to KEP related to inquires/leads, requests for information, and all other communications; b. City will provide assistance with applying for grants/loans/incentives related to economic development activities when there is a clear benefit for Kent County and the City, as determined by the City Manager and/or City Council; c. City will provide tours of avaHable land, properties, etc. to KEP, prospective businesses, sites selectors and/or community stakeholders for the purpose of encourag.ing economrc development; IV. METHOD OF PAYMENT Payment for services will be made by the City in Four (4) quarterly payments of $12,500, with the first payment starting on October 15, 2018 and payments as foUows : January 15, 2019; Apr[! 15, 2019; July 15, 2019 . The maximum total amount payable by the City under this agreement i·s $50,000 as detailed ln the SCOPE OF SERVICES (Section II of this contract), and no greater amount shall be paid . KEP will make availablce all receipts if requested by the City. V. DURATION AND EXTENSION This Agreement shall be in effect from October 1, 2018, until September 30, 2019. If mutually agree~ble tQ City Councif and KEP, this Agreement may be extended. Such extension will be documented by written amendment, duiy s igned ahd dated by both parties. However, either party may terminate this contract due to non~fulfillment with 60 day's prior wrrtt1;m notice. VI. REQUIREMENTS

a. Non*Discrimination: KEP wHI not discriminate against any employee, business, prospective business or investor becaus.e of race, creed, color, religion, citizenship status, gender, age, national origin, ancestry, disabjlity, sexual orientation, gender identity or expression, marital status, pregnancy, military veteran status, political beliefs or affiliatfon, .genetic history, or other characteristic protected by law. These protections apply to all areas of employment, .including recruitment, hiring, training and development, promotion, transfer, dismissal, layoff, cornpensatfon, benefits, social and recreational programs. b. Gomplfance with Law: All parties shall comply with ail applicable federal, state and local laws, ordinances, codes and regulations. c. Conflicts of Interest/ Political Activity: i. The elected Officials, publlc offici:aJs, employees and agents of the City shall comply with all applicable laws and regulations relating to conflicts of interest with regard to the work ,,md compensation covered bythis Agreenient ii. The board members, officials, employees and agents of KEP shall comply with all applicable laws and regulations relating to conflicts of interest with regard to the work and compensation covered by this Agreement. fii. KEP shafl not use the compensation pc1id through this Agreement for political activities or legislaUve activities. For the purpose of this Agreement, the terms "political activities" and "legislative actfvities'' shafl have the meanings ascribed to them by the Internal Revenue Service. d. KEP is not authorized or empowered to make any commitments or incur any obligation on behalf of the City, but merely to provfde the services provided for herein as .an independent contractor. VII. TERMINATION Either party may terminate this Agreement, with or without cause, upon 60 written notice to the other party. vrn. INDEMNITY City shall indemnify, defend, and hold harmless KEP from any and all s.uits, claims, demands, or acticns arising from actions taken in connection with City's agreement for economfc development related services. KEP shall indemnify, defend, and hold harmless the City from any ;:ind all suits, claims, demands, or actions arising from actions taken in connection with KEP's agreement to provide economic development related servfces. IX. NOTICE Alf notices, requests, demands and other cornm • nicaBons, required or permitted under this Agreement shall be in writing, signed by or on behalf of the person giving such notice and shall be addressed to the fotlowirtg persons: CITY: KENT ECONOMIC PARTNERSHIP: Donna Mitchell, City Manager Linda Parkowski, Executive Director 15 Loockerman Plaza 555 Bay Road Dover, DE 19903 Dover, DE 19901

IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the day and year first written above. ~IJmy..<_m. fna,di,,,._ .jfness CITY OF DOVER K~~.~ ~ /7IAJfnj7h_" Witness KENT ECONOMIC PARTNERSHIP