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COUNCIL COMMITTEE OF THE WHOLE The Council Committee of the Whole Meeting was held on February 9, 2016, at 6:00 p.m., with Council President Slavin presiding. Members of Council present were Mr. Anderson, Mr. Sudler (arrived at 6:12 p.m.), Mr. Neil, Mr. Cole, Mr. Hare, and Mr. Hutchison. Mr. Lewis and Mr. Hosfelt were absent. Mayor Christiansen was also present. Civilian members present for their Committee meetings were Mr. Caldwell and Mrs. Horsey (Parks, Recreation, and Community Enhancement), Mr. Blakeman and Mrs. Stewart (Utility), and Ms. Maucher (Legislative, Finance, and Administration). Mr. Shevock (Legislative, Finance, and Administration) was absent. PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE AGENDA ADDITIONS/DELETIONS Mr. Hare moved for approval of the agenda, seconded by Mr. Hutchison and unanimously carried. Draft Committee Strategic Plan to Submit for Staff Review Mr. Anderson reminded members that the Committee had been working on a strategic plan and had taken a good amount of testimony from citizens, staff, and different groups in the community. He indicated that it was planned to summarize this information and submit it to staff for their input, revision, and review of options. Mr. Anderson stated that Mayor Christiansen had information on possible funding from the State legislature in relation to a community center. During the Parks, Recreation, and Community Enhancement Committee meeting of January 11, 2016, members considered a proposed recreation center at Dover Park. At that time, members recommended referring the proposal back to the Mayor for more information. Mayor Christiansen advised members that he had submitted a request to Attorney General Matt Denn for $1.5M from bank settlement funds that Mr. Denn planned to use for community development. He indicated that Mr. Denn had previously assisted the City in obtaining $579,000 for police uses, including crime prevention. Mayor Christiansen reminded members that the former facility at Dover Park had been torn down and reiterated his previous recommendation that $380,000 that had been earmarked for a splash park be used for a community center, projecting that a splash park would be available to the community for only two (2) to two-and-a-half months per year. Mayor Christiansen informed members that, during meetings of the Towne Point Civic Association, members expressed interest in restoring the facility that was taken down at Dover Park, and he felt it was incumbent upon the City to begin planning for this. Mayor Christiansen stated that this would provide a place for the PAL program that the Police Department was interested in restarting, due to its previous success, and this should be done as part of community outreach. He noted that other programs that could be housed there would be the Hot Shots Basketball Program. Mayor Christiansen advised that the program was run by former Councilwoman Beverly Williams through Aid in Dover and it serves approximately 500 children. Additionally, the Martin Luther King Jr. Educational Community Center mentoring and tutoring program, which would be available through the efforts of Dr. Gus Walker, could be housed there. Mayor Christiansen noted that the City often

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 2 has contract services with Towne Point Elementary School and stated his belief that there is a necessity for a facility on the east side of town. Mrs. Ann Marie Townshend, Director of Planning and Community Development, shared her concerns about moving too far too fast on this matter. She advised members that the Recreation Needs Assessment summary included a table that listed needs that were stated by over 25% of the respondents, noting that this project was near the bottom of the list with 25.7% responses. She indicated that there were greater demands from the public for walking and biking trails and restrooms at both Silver Lake and Dover Parks. Mrs. Townshend noted that a master plan must be developed that would incorporate the information gathered through the assessment into a land plan that may include a building before planning to construct a building . She stated the need to look at restrictions on the land, stating her belief that Dover Park had received Delaware Land and Water Conservation Trust Fund and federal Land and Water Conservation Fund monies. Mrs. Townshend indicated that there were strings attached to these funds, noting that an indoor recreation facility cannot be placed within certain boundaries and it may not be possible to have a building larger than the footprint of the previous building. Mrs. Townshend stated that other needs were expressed that may be less costly and could also serve the needs of the public. She felt that much more background work in terms of looking at the park as a whole was needed before funding construction of a building. Mrs. Townshend reminded members that concerns had been stated about safety at Dover Park, whether or not there was a building there, and that it was desired to hire someone to do a vegetation management plan due to visibility issues and overgrown vegetation, as well as a lighting plan. In addition, Mrs. Townshend stated concern with the idea of entirely depleting the Parkland Reserve Fund by taking $380,000 for the Dover Park. She confirmed that there were funds in the capital budget for a splash pad; however, she stated the capital budget would not include a splash pad or skate park but would be a park-based budget, including the development of plans for the City’s major parks and small park projects, that would be tied to the Recreation Needs Assessment. Mrs. Townshend advised members that things like the skate park and splash pad were budgeted in the Capital Improvement Plan (CIP) with the idea that the City would pay half and the State would match these funds with Delaware Land and Water Conservation Trust Fund money. She indicated that this money cannot be used for an indoor facility; therefore, therefore half of the money would not be available and it would not be just a matter of reallocating money that was directed to a splash pad for an indoor facility. Mrs. Townshend stated that she was not saying that the facility was not needed and should not be constructed, but she had concerns about moving too fast by allocating funding and putting this ahead of other projects. Mayor Christiansen stated his belief that the City was at a critical point in time and that the needs of the citizens on the east side of the community superceded the desire for a dog park in the City. He felt the City had an obligation, as part of its community outreach, to at least discuss the issue. Mayor Christiansen felt that if he were successful in obtaining bank settlement funds from the Attorney General, a portion of those dollars could be used to construct the facility. He indicated that, as a taxpayer, he was very upset when the Dover Park fell into disrepair, stating his belief that this was planned obsolescence. Mayor Christiansen felt the City had a responsibility to at least begin the

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 3 effort by exploring the opportunity to fulfill the recreational needs of the citizens and taxpayers on the east side of the community, stating that the need was obvious. Mr. Hare reminded members that the reason the building was demolished and not replaced was that there were programs that did not receive much participation and indicated he was unsure that building a new facility at this location was warranted. Responding, Mrs. Townshend advised members, that toward the end of the time the facility was in use, most of the programs scheduled were canceled due to lack of participation. The popularity of the building was more for rentals for birthday parties and showers rather than recreational programs. Mr. Anderson stated that, as discussed during the previous Committee meeting, the building would be used through grant programs, such as the Hot Shots Basketball and PAL programs, and the MLK Center which currently has thousands of participants. He stated that using the facility as a community center would be different from previous use. Responding to Mr. Hutchison regarding the status of a master recreation plan for the City, Mrs. Townshend stated that the Recreation Needs Assessment was completed and approved by Council on August 24, 2015. A master plan for Schutte Park was now being developed, using in-house engineering and planning staff, that would accommodate fields on the western side, including additional parking and other elements seen in the assessment. Staff had planned that their next project would be a master plan for Dover Park that would identify the constraints, incorporate elements of the needs assessment, reserve an area for an indoor facility in the future, and address issues of landscaping, vegetation management, and lighting. It was staff’s desire to bring forward in the capital plan a master plan for the next fiscal year. Mrs. Townshend stated that there may be a building, but expressed the necessity to look at constraints. She felt it would be problematic if a building was planned and it was then found that the footprint violated the grant covenant the City agreed to in the past when the City accepted federal or state money for other park improvements. Mrs. Townshend indicated that staff was in the process of getting this information from the Department of Natural Resources and Environmental Controls (DNREC). She indicated if a full master plan was not done, at the very least the City should look at the footprint that would be allowed without having to go through the process of a land swap. Mr. Hutchison stated the need to obtain information regarding what activities Kent County, the YMCA, churches, and schools were providing. Mrs. Townshend advised members that staff had not done a complete analysis of what other providers have available, noting that the Pitts Center and YMCA were currently the only recreation centers. However, she reminded members that Kent County would open a new recreation center in a couple of months that would house the Boys and Girls Club and would have additional programming. It was not known what effect this would have on the Pitts Center programming, such as indoor field hockey and open gym time, noting that the County and the City had frequently competed over programs.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 4 Mr. Sudler questioned how many constituents had expressed demand for a skate park, splash pad, and an indoor facility for PAL and community programming. Responding, Mrs. Townshend stated that the top needs stated by more than 25% of the 506 respondents did not include the skate park or splash pad. She stated that those priorities were set by Council a number of years ago, and a determination would be made regarding which parks were the proper locations when staff develops the master plans. This did not mean that these projects were to be the next ones funded. Mrs. Townshend stated that the idea was to develop a master plan and prioritize its implementation. In reviewing the Recreation Needs Assessment, Mrs. Townshend explained that there was a higher response rate for those who favored a paved trail system at Dover Park than an indoor recreation facility, and the highest use of that facility was for walking and jogging. She indicated the need to balance all needs, and she felt that staff was not in a position to do this until they are laid out and costs determined. She noted that the cost of a recreation center would be much more than the $1.5M that the City might receive from the Attorney General. Noting that he serves as the chair of the Mt. Zion A.M.E. Social Action Commission, Mr. Sudler questioned the priority that was given to the Social Action Commission’s assessment and survey of the needs of individuals in the Third and Fourth Districts for the Dover Park and how this was incorporated in the plan. Responding, Mrs. Townshend stated that the Recreation Needs Assessment was based on the data that staff gathered and the information provided by the Social Action Commission was not used. Mr. Anderson stated that he would forward this information to the Committee. He indicated that this survey had approximately 300 respondents and 234, or approximately 75%, favored replacing the recreational facility. Mr. Slavin stated that he empathized with staff on issues like this, noting that Council asked staff not to make rash decisions and to perform assessments to gather data and to make recommendations so that Council could make decisions based on supportive data. Now staff was having to play defense against the idea of a new building regardless of what the assessment or data had said. Mr. Slavin felt it was unfair to ask staff to do one thing and then shift the goalpost and move them another way. He encouraged everyone to have a much higher standard of analysis than was being exhibited when making decisions about designing, building, and paying for the operation of new buildings. Mr. Slavin expressed his opinion that the $1.5M would not nearly pay the cost of and stated the need to look at the life cycle costs of the entire building, including physical infrastructure and operational costs over a 20-year period. Referring to Mr. Anderson’s comment that grants would be used for operational expenses, Mr. Slavin felt that if members began by saying that the operation of a major facility would be supported by external resources, the City would be in trouble, noting that three (3) grants could not be named right now. Mr. Slavin projected that the funding would come from the City and would further inflate the budget. He asked members to exercise caution, perform due diligence, and understand the true costs of putting a building online. Mr. Anderson pointed out that information regarding the grants, as well as those who would operate them, was included in the minutes of the Parks, Recreation, and Community Enhancement Committee meeting held on January 11, 2016. Mr. Slavin stated that grants are cyclical and year to year.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 5 Mr. Sudler felt that external entities separate from the City of Dover, such as the A.M.E. Social Action Commission, which had taken the initiative to find the needs of individuals in the area, should be counted as a top priority. The Commission had taken its time to field the concerns of those constituents, in addition what the City had done. Mr. Sudler felt this information should not be discarded because those constituents are taxpayers and stakeholders and should be given high priority in regard to the programs and activities to be provided at the Dover Park. Mr. Koenig stated his understanding that the Mayor and the Police Department had requested $1.5M on behalf of the City for the construction of a facility for which Mr. Koenig had not yet seen an application. He indicated that the project had not been through the staff process to determine, if a building were to be constructed, what the its size and function would be. Mr. Koenig stated that the normal process for a capital project was being overstepped. He questioned if the project would go forward if funding were not available, or if funding was obtained and the City was expected to make something to happen on the project within the next 12 months. Mr. Koenig stated that the City was not prepared at this point, noting that the matter had been discussed verbally, but there were no documents passed out about the PAL. He acknowledged that the PAL is a fantastic organization in concept; however, he questioned what would happen if the program was not fully funded or if funding was not available after a couple of years. Mr. Koenig advised members that he did not have these answers; however, that Council would ask him these questions on the budget floor when they discuss whether the current tax rate can be maintained or if fees must be raised. He expressed anxiety about how the process was going forward when there were even different ideas about the Recreation Needs Assessment. Mr. Koenig indicated that discussions need to start with Council members talking to staff so that staff can facilitate, develop ideas, and figure out how to prioritize. Mr. Koenig informed members that the capital plan currently does not mention a building at Dover Park but has earmarks for $80,000 and $100,000. He indicated that $180,000 was identified for potential improvements, which would not cover the operating costs of a heated and air conditioned building. The analysis of this building had not been done by the staff most qualified to say how much it would cost to build and operate. Mr. Koenig expressed his belief that Council would not have agreed to making a grant application for $1.5M without getting the complete approval of Council. He reiterated that there may be an expectation that the money be spent in a timely manner, stating his hope that it would allow at least three (3) years because just the planning process takes over one (1) year if the City follows its own rules. Responding to Mr. Sudler regarding the number of respondents to the Recreation Needs Assessment survey, Mr. Anderson stated his recollection that there were 506 respondents, 40% of whom were not City residents. [City Clerk’s Office Note: The City of Dover Recreation Needs Assessment report reflected that 28% of responses were from non-residents.] In response to Mr. Sudler regarding how many of the respondents were from White Oak Park, Mrs. Townshend indicated that she had the assessment with her but not all the data, stating that this could be discussed at another time. She reminded members that staff was using the process that they developed working with the Committee, and this had been presented to the Committee and adopted

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 6 by City Council. If there were concerns about the data process or input, that had not been communicated. Mr. Sudler questioned how many constituents from the White Oak Park/Dover Park area had expressed a need for activities and programs in that area and whether or not the programs and activities planned for the park were the result of input from the constituents in that area. Mr. Anderson requested that this information be provided, noting that the information he reviewed contained a summary. Mrs. Townshend advised members that respondents were allowed to select the development where they live in the survey, noting that this information could be pulled; however, she questioned what would be considered the area and if this would include all areas east of Route 13. Mr. Sudler questioned if programs and activities would be provided for all districts or specifically the Third District, where the park is located. Mr. Anderson noted that all facilities are open to everyone City- wide. Mrs. Townshend stated that the City does not budget by district, noting that there was a finite amount of money to spend City-wide. She expressed caution in saying that one (1) Council district or development was more important than another, and this was why staff looked at the City as a whole. Mr. Neil stated his belief that the City was not ready for $1.5M for a recreational center. Mr. Sudler moved to recommend postponing this matter for further data and information. The motion was seconded by Mr. Neil. Mr. Hutchison expressed the need to pay close attention to the City Manager’s comments. He felt that the City Manager and staff must be brought into the loop to guide members on a recommendation. Mr. Sudler felt that the constituents’ concerns and the A.M.E. Social Action Commission’s initiative, which received over 300 responses and amounted to more than half of the 506 responses received from the survey, should be highly considered and not disregarded. He indicated that he was appalled that this survey was disregarded and not taken into consideration, since their time and effort should not be null and void, noting that these were stakeholders and taxpayers. Mr. Anderson stated that Mr. Lewis had also done a survey that had close to 100 respondents in that area and that these responses would be submitted to Staff with the referral. Mr. Anderson indicated that, at the Committee meeting held on January 11, 2016, members asked Staff and the Mayor to work out some details; however, this had not happened. On a call for the question, the motion to recommend postponing this matter for further data and information was unanimously carried.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 7 Community Development Block Grant (CDBG) Program Quarterly Update (October, November, and December) Mrs. Ann Marie Townshend, Director of Planning and Community Development, reviewed the CDBG Quarterly Report 2015 for October, November, and December including the Status of FY-15 Program Funds Spent - Fiscal year 7/1/15 - 6/30/16. Mr. Anderson stated his understanding that Mrs. Donna Mitchell, Controller/Treasurer, had some questions regarding some of the monies not yet spent. Mrs. Mitchell explained that Mrs. Tracy Harvey, Planner I, was working on this matter and Mrs. Townshend was aware of it. Mr. Hare moved to recommend acceptance of the report, seconded by Mrs. Horsey and unanimously carried. Citizen Suggestion - Economic Empowerment (Clay Hammond) Mr. Clay Hammond II, 505 Troon Road, President, Delmarva Black Chamber of Commerce, stated that Mr. Anderson had asked him to comment on economic development specifically as it relates to the African American community in the City. Mr. Hammond read a prepared statement as follows: A widely held definition of economic development from a policy perspective are efforts to seek to improve the economic well-being and quality of life in the community by creating or retaining jobs, supporting and growing incomes of residents, and expanding the tax base. Some important factors with regard to economic development pursuits include having a trained and educated workforce and having communities in locales that are attractive to development and business attraction. One of the things that's important to note is that the African American population of the City is around 40%, with the white community comprising about 43%. However, in looking at economic development activities undertaken by City government and quasi-governmental entities, such as the Downtown Dover Partnership (DDP), very little has been directed at or addresses the economic development needs of the black community. This is why we initially came, I think last year, and asked for the economic inclusion study to be done. With regard to the economic development needs of the black community, they are reducing high levels of unemployment nationally and also locally. We think that the unemployment levels are basically twice that of the general or the broader community. Revitalizing distressed parts of the community, reducing poverty, and reducing crime. We say this because economic development is critically important because we think that is the new empowerment in equality and movement in the 21st century, akin to what the civil rights movement was in the '60s and '50s. If you look at economic disparities that exist in our community, whether its is income disparities, the unemployment level, net worth, the net worth of the community, it’s really important that we really begin to focus on economic development.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 8 One of the things that we think the City can do through its activities is development of appropriate public policy. Around the country, there are a lot of different initiatives that have been focused on alleviating the economic disparities in minority communities. Allocation of funds to support initiatives to address those disparities in the City's procurement activities can be very beneficial in this area. Based upon our analysis, and I say this from the standpoint of the Delmarva Black Chamber of Commerce, some recommendations that we think can be very beneficial. Create and fund the work of an economic inclusion advisory board. The economic inclusion study had a list of recommendations that we thought were very valuable. Creating a board would be helpful. Bill Neaton has been given a list of appropriate persons and organizations that can comprise that. Make workforce development a priority and partnership with entities such as the Martin Luther King Center, Whatcoat Church Community Development Corporation, and DelTech akin to that of the Kent County Entrepreneurship Consortium. The City can apply for grants in partnership with external partners to support broad-based and specifically community economic development. There is a plethora of funds out there, whether it is through foundations, or the government, through criminal justice funds that the City, I think, would be helpful in pursuing, would take some of the financial burden off of the City. If you want to do initiatives, it shouldn't have to fall onto the taxpayers all the time. So I think that would be helpful. Fund initiatives to support the growth of City's black business community. I would venture to say, and Ann Marie and some other folks can correct me, but a significant number, if not the majority of new businesses that have been coming downtown, are black-owned businesses. If you look nationally, black businesses are growing three (3) times faster than general businesses. So in economic development it is always important to support the work of a significant growth sector in that area and that is comprised of the black community. Expand the City's Community Development Block Grant initiative. I know the entitlement is very small, but again, I think with some outside funding and some other resources, it can expand things to talk about community development outside of home ownership and some other things. And have the City's crime prevention strategies include community economic development. One of the things I constantly say all the time when I speak to people is that you're never going to police your way out of this situation because police show up after the fact. If you look at the young men, I talk to a lot of young men that I know are selling dope on the corner. They're not doing this as a career track. They're doing it because they feel they have few other economic options, whether it's a lack of appropriate job skills or education, or a criminal record. But again, I think a lot of them possess keen entrepreneurial skills that if we could focus on something positive,

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 9 could transform their lives and also the community. These are just some suggestions and comments I have on this. Mr. Hammond explained that he first lived in Dover when he was about 12 or 13 in the early '70s and came back in the '90s to work at Delaware State University, and again roughly in 2013. He indicated that a lot of the conditions that he sees in the City’s African-American community have existed for decades. Noting the tremendous number of African-Americans, Mr. Hammond felt that the community been ignored in a lot of areas. He specifically mentioned Downtown Dover Partnership (DDP) partnerships because part of their service area had always been the Queen Street, Kirkwood Street, New Street corridor. Mr. Hammond expressed his belief that they had never focused on or put any resources into economically revitalizing those communities. He felt it would be helpful to have a comprehensive approach to addressing the economic development needs of the entire community and residents of the City. During their Regular Meeting of November 25, 2013, City Council considered a request from Mr. Hammond for funding for the Delaware State University Center for Economic Development and Trade to conduct an economic inclusion study for the City of Dover. City Council approved the request to fund the Economic Inclusion Study in the amount of $6,000, as recommended by the Legislative, Finance, and Administration Committee. During the Legislative, Finance, and Administration Committee meeting of August 10, 2015, Dr. Michael Casson, Director, University Center for Economic Development and Trade (UCEDIT) reviewed a presentation of the African American Business and Workforce Inclusion Report for the City of Dover, Delaware, which was accepted by Council at the recommendation of the Committee. During the presentation, Dr. Casson stated that the economic inclusion study was a very important first step in this process, and the next important step would be an inclusion plan. This plan would take some of the points from the inclusion study, bring together the stakeholders, and begin to create strategies around engaging the African-American community. Mr. Anderson questioned Mr. Hammond on the status of the creation of an economic inclusion advisory board and what request he had made of the City regarding economic development. Responding, Mr. Hammond there had been a request through a conversation with Mr. Bill Neaton, Economic Development Director, to begin put together a body, but he had not heard anything back. Mr. Hammond explained that this body would talk about implementing the recommendations that came from the study. He indicated that he had provided a list of approximately 20 individuals representing the business community, Delaware Technical and Community College, Martin Luther King, and the banking community and recommended reaching out to these parties; however, he had heard anything more. Mr. Sudler asked if Mr. Hammond was discussing economic development for African-Americans or all races. Responding, Mr. Hammond stated that he was specifically talking about African-Americans. He noted, however, that economic development would benefit everyone in terms of job creation, additional services, and resources. Mr. Hammond indicated that he was looking at this from the African-American perspective because the economic inclusion study focused on this.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 10 Responding to Mr. Sudler regarding statistics relating to African American economic development in downtown Dover, Mr. Hammond stated that he did not know the specific numbers but that a significant number of the new businesses downtown were black-owned. In response to Mr. Sudler as to whether he felt this reflected progress, Mr. Hammond indicated that it was progress and was revitalizing downtown Dover. He stated the need to invest in the commercial corridor, noting that it did not make sense to have empty storefronts, no matter who owns the businesses. He felt it was helpful for the African-American community because the community contiguous to downtown, especially the lower end, is the African-American community and he felt this was a positive effect. Mr. Caldwell expressed his belief that the term economic development is very broad and questioned what Mr. Hammond envisioned for the City in going against crime and providing jobs for the community. Responding, Mr. Hammond stated that workforce development was key and, when looking at what was taking place nationally with the growth of the healthcare industry and noting that Bayhealth Medical Center would be building a new hospital in Milford, he stated the need to train people to have a long-term attachment to the workforce. In response to Mr. Caldwell as to how he would plan to go about this, Mr. Hammond advised members that there was a need to help people understand that their lives would change through work. Noting that there were young people walking the streets, Mr. Caldwell asked how Mr. Hammond would implement his plan. Responding, Mr. Hammond expressed the need to get the church involved, expressing his belief that the black church was the only enduring institution in their community. He stated that kids who had grown up in the Kirkwood and New Street area had seen a great deal of dysfunction. Mr. Caldwell felt that the problem was not just on Kirkwood Street and was the whole community. Mr. Hammond stated the need to help people understand that in order to have the life that everyone wants to have, you must have a skill or trade and be educated. He felt that economic development is a 20 to 30 year process, noting that the problems did not crop up overnight and would not be resolved overnight but would take a sustained effort by all parts of the community. Mr. Hammond stated that Dover has a very educated community and is one (1) of the few communities in the country that has a Historically Black College or University (HBCU), which could be a tremendous resource. Mr. Hammond stated the need to bring everyone together and prepare a strategic plan. He stated that what the kids on Kirkwood and New Streets see is not representative of real life, noting that he had observed alcohol consumption in this area similar that would make one think it was Saturday afternoon at the Superbowl. Responding to Mr. Caldwell, Mr. Hammond stated his belief that change must begin in the home and in the church and all segments of community must sent a unified message of what is really needed to have the type of life that people want to have. He felt that social institutions such as schools and churches play a part.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 11 In response to Mr. Caldwell as to whether this was part of his plan, Mr. Hammond indicated that he did not have a plan; however, there was a coalition of organizations that was coming together now and meets once per month. Mr. Hammond stated that part of the approach would be to propose gathering together churches, fraternities, and sororities to talk and develop a strategic plan. Mr. Hammond stated that a meeting was scheduled for February 29, 2016 and 50 people representing most of the major churches in the City were involved. Mr. Neil stated that he was impressed by the information that Mr. Hammond had provided and stated his belief that the issues presented by Mr. Hammond applied not only to Dover but to every major city with very few exceptions, and to every state. He concurred that turning this around must start with children. Mr. Neil expressed concern about dealing with the grant money that Mr. Hammond indicated was out there. He stated the need to identify grant sources while bringing together the impressive group of people that he had identified. Mr. Neil indicated that he would love to see this effort started and applauded Mr. Hammond for what he had done. Mr. Hammond informed members that they had begun to compile a list of federal grant resources and would be happy to share this document with the City. He noted that a lot of grant money requires public/private partnership. In response to Mr. Anderson’s request for a summary of the Ice House Program, Mr. Hammond indicated that the Delmarva Black Chamber of Commerce had been pushing a unique, entrepreneurial development program. He indicated that most small business development programs require development of a business plan, but running a business does not necessitate being a business expert. Mr. Hammond stated that this program helps people create an entrepreneurial mindset, develop a resource network, and evaluate the possibility or probability of a venture succeeding. His organization’s goal was to facilitate the first class of this program in Dover in late April or the beginning of May. He stated that the Delmarva Black Chamber of Commerce was the only organization in the State that had been trained through the Kauffman Foundation and had certified facilitators for this program. Mr. Hammond advised members that the program would be offered at Whatcoat Church on a Saturday afternoon from 10:00 a.m. to 2:00 p.m. for seven (7) weeks and invited all to come by. He explained that this was a unique program being rolled out around the country and the Delmarva Black Chamber of Commerce was the only entity in Delaware that would be providing it. Mr. Hammond provided a fact sheet on the Ice House Entrepreneurship Program (Attachment #1). Mr. Sudler stated that he respected what Mr. Hammond and his colleague, Mr. Bobby Wilson, were doing for the community. He suggested that they come up with a five (5) year plan with detailed objectives and accomplishments and a time track. He felt that this would help the City to support their initiatives. Mr. Hammond agreed with Mr. Sudler, stating that without a strategic plan to clarify goals and objectives, it would just be conversation. He stated the desire to have a living, breathing document and look at benchmarks and it would be proposed that the coalition work on a five (5) or 10-year strategic plan.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 12 Mr. Sudler suggested that this plan be provided to the City in the near future if the coalition wanted to see results. Mr. Hammond indicated that it may not be in the near future since a lot of diverse groups would be brought together; however, they would be engaging in a strategic plan. Mr. Sudler moved to recommend referring the minutes of this meeting to the City’s Economic Development Office, seconded by Mr. Neil and unanimously carried. Mr. Sudler moved for adjournment of the Parks, Recreation, and Community Enhancement Committee meeting. The motion was seconded by Mr. Hutchison and unanimously carried. Meeting adjourned at 7:00 p.m. UTILITY COMMITTEE The Utility Committee met with Chairman Hutchison presiding. Members present were Councilmen Cole and Neil, Mr. Blakeman and Mrs. Stewart. AGENDA ADDITIONS/DELETIONS Mr. Neil moved for approval of the agenda, seconded by Mr. Cole and unanimously carried. Additional Power Supply Alternatives Mr. Scott Koenig, City Manager, reviewed a Memorandum regarding Additional Power Supply Alternatives, dated February 1, 2016, noting that it was prepared with input from The Energy Authority (TEA), which provides the City assistance with energy management functions. Mr. Koenig advised members that the Executive Risk Management Committee (ERMC) was requesting approval to explore two (2) exceptions to the Governing Energy Commodity Risk Policy, explaining that this Policy guides the City’s power purchases through the hedge program. He stated that, over the past few months, the ERMC had been made aware that there are products in the market that may be of interest to the City; however, the current Risk Policy does not allow the ERMC to pursue those products or bring them forward for consideration. Mr. Koenig reviewed the descriptions of the two (2) possible products. He stated that one (1) possible product would be the Load Following Product for Fiscal Year 2017 and 2018, explaining that a third party would purchase 100% of existing hedges that the City has purchased to date at the same price the City originally paid for them. Then the third party would give the City a “load following product” that would follow the City’s load for a fixed price through Power Years 2017 and 2018. Mr. Koenig stated that this may be attractive to the City because it will fix the City’s price for power based on the per megawatt (MW) cost and the only difference would be based on the volume of power that the City would or would not purchase. He explained that this is a product that is out there for a short term, and one (1) counterparty has shown an interest in it and discussed it with the

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 13 ERMC. Mr. Koenig stated that this is a product that the City may want to consider and the ERMC was requesting authorization to pursue negotiations on the product. Mr. Koenig informed members that the second product is the potential purchase of up to 50 MW of energy at a fixed price for up to a 10-year period. He reminded members that currently the City’s hedge program only goes out five (5) years, noting that this product would be outside of that window. Mr. Koenig stated that this is a product that is currently in the market and that the ERMC had discussed power on this type of strip for upwards of three (3) to five (5) cents, which Mr. Koenig noted is considerably cheaper than some of the products that the ERMC has looked at over the last few years. He informed members that the ERMC is not sure how long this product may be available with the changing market; however, the ERMC was requesting authorization to pursue this product. Mr. Koenig explained that the Risk Policy limits the ERMC’s ability to consider these two (2) products and the ERMC is requesting authorization from the Utility Committee and City Council to begin pursuing them with the understanding that the ERMC would have to come back to the Utility Committee and City Council for final authorization of any contracts. He noted that these products may help the City reduce its cost of energy moving forward and the ERMC believes that it is financially responsible to consider them. Mr. Neil noted that Mr. Koenig referred to a change from going out five (5) years to 10 years and questioned how that would affect the City’s budget and whether that money would be committed now for the future. Responding, Mr. Koenig stated that the City would pay at the time that the product is actually used. He explained that this would give the City price certainty on that 25 or 50 MW over a 10-year period, noting that currently the City only has price certainty in the first five (5) years of the hedge program because the City is only focused on a five (5) year window. Mr. Koenig stated that this would commit funds in future budgets; however, it would commit them at a known fixed price. Mr. Blakeman asked if the load following cost was based on an hourly, daily, weekly, or monthly rate. In response, Mr. Koenig stated that the load following cost was based on the whole load for the year and indicated that it is probably done on an hourly basis. He explained that the price would be fixed for the whole year, and if the City entered into a contract that said secured its load for $45 per MW for every hour of the year, the City would pay $45 per MW regardless of how much is used. Responding to Mr. Blakeman, Mr. Koenig confirmed that the City would pay the same amount in the off peak hours, noting that there was risk in that. Mr. Blakeman stated that the Committee would expect to see some details and questioned whether the energy manager had experience with these two (2) products, noting that they are new. In response, Mr. Koenig stated his belief that the energy manager had experience negotiating these products; however, he was uncertain how many counterparties had executed them at this point. He reminded members that this is a new product that had come to the ERMC in the last couple of months. Mr. Koenig stated that he did not know how long the product had been in the market or if anyone had executed these types of deals.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 14 Mr. Blakeman asked if the City could find out whether someone had actually executed these types of deals. Responding, Mr. Koenig stated that Staff would probably bring that information when they come back to the Committee. Mr. Anderson reminded members that the City was stuck for a couple of years with higher electric rates than anyone around because the City bought in at higher costs and asked what the risk would be if the City begins going 10 years out. He noted that the gas and oil prices cannot be predicted two (2) years out, let alone 10 years. Mr. Anderson stated that he wanted to understand the risk. Responding to Mr. Anderson, Mr. Koenig stated that it would be a risk if the City locks into a contract and the market falls below the locked-in price. He reminded members that the City had experienced this situation in the past when, in a very high cost market, the City locked in a certain amount of its load and prices dropped, so the City was overpaying. Mr. Koenig stated that the 10-year product seems attractive at the moment because the back end of the gas curves are very low, which are driving very low prices in that 10-year strip. Using the example of four (4) cents per MW hour, he explained that if the City can take advantage of a product like this, the chances of the market being substantially lower than four (4) cents over a 10-year horizon are relatively low. He stated that there is a risk that prices will go below that; however, looking at history, if the City can achieve that product, the City would be well within its standard of risk to execute it. Mr. Koenig stated that the load following product is a little bit different, noting that with the load following there is always the question of off-peak versus on-peak and what is happening in the market and the world. He informed members that there are so many things that affect these prices that the City will never have 100% certainty. Mr. Koenig stated that he did not believe there is a deal available for two (2) cents; however, if the City cut a deal for two (2) cents and the market was tracking at 1.8 cents, he did not think the City should complain. He noted that while it would seem impractical that prices could go that low, it seemed impractical based on the market a number of years ago that the City would currently be talking about three (3) to four (4) cent power. Mr. Koenig stated that the ERMC would not be bringing these products forward unless they thought that the City could lower its projected costs. Mr. Anderson noted his understanding that the ERMC was looking at the fact that prices were low right now and the odds were against prices being this low in future years. Mr. Koenig informed members that the risk in not bringing the request to explore these products forward for consideration is that a member of Council could find out about these products from a member of the Delaware Municipal Electric Corporation (DEMEC) or another utility and ask why Council was not informed, and it would place the ERMC in a bad position because they limited the alternatives. Mr. Anderson asked what percentage of the power the ERMC was considering. Responding, Mr. Koenig stated that on the load following, it is 100% of the two (2) year window, the 2017 and 2018 Power Years. He advised that on the 10-year strip, the product discussed has been 25 MW, although the memorandum allows up to 50 MW because if that product is out there and the ERMC

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 15 can get a really good deal, the ERMC would be willing to bring as much as 50 MW for a 10-year deal back to Council. Mr. Anderson stated that he liked the idea of exploring it. Responding to Mr. Hare, Mr. Koenig advised members that the City’s composite for the current year is between five (5) and six (6) cents for energy purchase. He recalled that over the last four (4) to five (5) years, the City’s composite was approximately seven (7) or eight (8) cents and it had come down fairly steadily over the last few years. Mr. Hare asked how many MW the City committed in five (5) years. In response, Mr. Koenig stated that in the current year the City was hedging approximately 80% of its estimated load and each year out this declines by 20%, noting that the hedge targets are 80% for the current year and decreases to 60%, 40%, etc. Responding to Mr. Hare, Mr. Koenig confirmed that if the City went out for 10 years, the price would be guaranteed for those 50 MW for that 10-year window. Mr. Hare asked how many MW the City would use in 10 years. In response, Mr. Koenig stated that the City’s average load was 700,000 MW per year. Mr. Harry Maloney, Electric Director, stated that he would have to do the calculation; however, he estimated that 50 MW would be a little more than half, explaining that was why Staff left it between 25% and 50% looking forward. He noted that gas prices are the lowest they have been in years. Responding to Mr. Hare, Mr. Maloney stated that the City would use more than the 50 MW. He advised members that the City’s evening loads are above 50 MW. Mr. Maloney indicated that the City’s load is relatively flat right now - in the 80s. Mr. Hare asked what the projected savings would be for the City with these products. Responding, Mr. Maloney stated that Staff did not have a firm number yet, noting that they would compare it to the five (5) year budget, what they have been speculating and what the City’s hedges are, and come back with those numbers. Mr. Hare stated that he would have to see what the projected savings would be before he could commit to it. In response to Mr. Hare, Mr. Maloney reminded members that this was part of the deal. He stated that the City is buying risk to save energy, but then there is the risk of being stuck with a product. Mr. Maloney noted that if gas prices continue to hold steady after this winter, the ERMC will probably get some good prices to be able to see where the numbers fall. Responding to Mr. Hare, Mr. Koenig stated that the ERMC was only requesting authorization to pursue negotiations on these products. He reiterated that if the ERMC is successful in negotiations, they would come back with recommendations as to whether to sign those products. Mr. Koenig explained that the ERMC would have to execute contracts which are beyond the value of what the ERMC can execute according to policy. He stated that the ERMC would come back to the Committee and Council with a recommendation based on financial impact, reduction of risk, potential risk, projected savings, etc.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 16 Mr. Blakeman moved to recommend authorizing the Energy Manager to explore two (2) exceptions to the Governing Energy Commodity Risk Policy to pursue negotiations for two (2) separate commodity transactions intended to meet the City’s electric load requirements and reduce the City’s risk, as recommended by Staff. The motion was seconded by Mr. Cole and unanimously carried. Quarterly Review of Utility Related Capital Investment Plan (CIP) (Electric and Water/Wastewater)(October, November, and December) Mr. Scott Koenig, City Manager, reviewed the Quarterly Report for the Capital Investment Plan (CIP) as of December 31, 2015. Referring to the Water/Wastewater Improvement & Extension Fund - Major CIP Projects, Mr. Koenig advised members that staff was still working on the siting of a 1 MG storage tank on the north end of the City, noting that an alternate site had been identified and staff was working through a memorandum of understanding with the property owner that they intend to bring forward once all of the language is confirmed. He informed members that the Garrison Oak Water Tower had been filled and placed in operation, and that project is getting very near completion. Mr. Koenig stated that the Garrison Oak Water/Wastewater Improvements are all in service and staff is closing out the contract documents associated with that project. Mr. Koenig informed members that the Brandywine Pump Station has been a problem. He explained that the City has been in a dispute with the general contractor regarding warranties and things of that nature; however, it appeared that the contractor had remobilized. Mr. Koenig stated that staff hoped to get the pump station in operation and the project closed out soon. Mr. Koenig stated that the contractor had mobilized on the Westover Pump Station and force main project and work would begin shortly. He advised members that the West Dover Connector projects were coming to an end. Mr. Koenig, referring to projects in the current year budget, stated that the fencing around the Bayard Avenue Water Tower was in. He noted that the City is working on the water treatment plant process improvements, the large meter replacement project, as well as the potential construction of a new deep well in the system. Mr. Koenig stated that a number of wastewater projects would be moving forward, noting that some of them would be going to Council for authorization of the bids. Referring to the Electric Improvement & Extension Fund - Major CIP Projects, Mr. Koenig stated that there were a number of projects underway related to the Power Plant, noting that the VanSant Capacity Increase Project is very near completion. He stated that all the testing was done and it was his understanding that the City had confirmed that the expected capacity expansion had been realized, explaining that the project has put the City in a better position to deliver power to the system.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 17 Mr. Koenig advised members that the General Scott Switchgear project was probably the largest electric project for this year. He stated that the switchgear has been placed in service and is online. Mr. Koenig indicated that Mr. Harry Maloney, Electric Director, and his staff are working on the completion and closeout documents associated with the project as well as a number of subdivision and site additions that are identified in the Capital Plan. He stated that the Electric Department is also working on the potential replacement of a group of large electric meters that will eventually lead to some of the City’s smart grid improvements. Mr. Koenig stated that the VanSant Component Replacement project has begun and will get underway with the taking apart of the various components in the spring. He advised that there are a number of other small projects that are underway that Staff or the Plant are working on. Mr. Koenig informed members that capital project construction and design is moving forward. He noted that the Electric and Public Works Departments have been able to hire all of their engineering staff and the design, project management, and budget delivery pipelines now are staffed on the City side completely. Mr. Koenig stated that Staff expects to realize an acceleration of the project backlog that had developed because of staff vacancies. He expressed his hope that over the next few months the City will catch up and get into the current year on almost every project. Mr. Hare asked how much the VanSant project would cost. Responding, Mr. Koenig stated that the VanSant Capacity Upgrade was approximately $1.4M., the VanSant Component Replacement was approximately $21,000, and the VanSant Exhaust Plenum Replacement was approximately $469,000, noting that the City was spending just under $500,000 on improvement to VanSant this year and almost $2M total. Mr. Blakeman, referring to project EE1616 - New Developments, noted that the project budget balance was approximately $1.8M and questioned whether the City had done any new developments this year. Responding, Mrs. Donna Mitchell, Controller/Treasurer, stated that this is the way the report is written. She explained that the original budget shows $2.5M and the revised budget shows $1,850,000. She informed members that the budget was moved to the individual projects, which are indicated by a “T” in the Type column because that reflects that the money was transferred into those individual projects from the master budget. Mrs. Mitchell stated that the actual expenditures show up with the individual project, not under the master budget. Mr. Anderson, referring to the General Fund - Major CIP Projects - FY 2016 Vehicles and Equipment, noted that only 23% of the budget had been spent as of December 31, 2015. In response, Mr. Koenig stated that a number of pieces of equipment had been ordered and, as far as he knew, the City had ordered everything. He indicated that he would have to check on this, explaining that it just may not be showing up on the financial data yet. TEA/NAES Report (October, November, and December) The TEA/NAES Monthly Reports for October, November, and December 2015 were provided to members to enable them to monitor electric sales and revenues received, which will provide a better

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 18 understanding of any fluctuations that occur and allow the opportunity to make improvements if deemed necessary. Mr. Scott Koenig reviewed Page 13 of the TEA Report for December 2015, noting that the Gross Load Budget YTD was 388,000 and the Actual Load YTD was 385,291, indicating that the City is slightly under the expected load. Referring to the Total - Utilities Cost, he stated that the City was expecting to spend $25.97M and has spent approximately $21.58M. Mr. Koenig advised members that, in general, the City is tracking below the anticipated budget this year, which is always good, noting that in most months the City has been just below the budget, and the cumulative effect has put the City $4.38M in favor for this component of the electric budget. Mr. Blakeman, referring to the Supply Variance - Purchased Power Variance Report on Page 2 of the TEA Reports for October, November, and December 2015, noted that there had been pretty substantial differences between the Budget and Actual Unhedged Energy Cost ($/MWh) over the last six (6) months. He stated that in December, the budgeted amount was $49.84 and the actual cost was $24.06; in November the budgeted amount was $42.75 and the actual cost was $16.36; and in October the budgeted amount was $43.26 and the actual cost was $7.47, which is a variance of $35.79. Mr. Blakeman expressed his concern with this disparity. He stated that he did not understand why the City is missing the budget number at such a large pace and asked if there is a mechanism the City can capture that would allow the City to get more of the lower priced unhedged energy as opposed to paying for the hedge energy cost. Mr. Blakeman thought that there seemed to be a huge savings potential if the City could capture more megawatts in that bracket. Responding to Mr. Blakeman, Mr. Koenig explained that there is a huge savings; however, there is also a huge risk in the unhedged portion because it is at risk for price adjustments. He stated that the City has been following the hedge policy and, for the past four (4) years, laddering in hedges in the current year up to 80%. Mr. Koenig advised members that four (4) years ago when the City began laddering those hedges in, the City was not sure what the cost of unhedged energy would be. He stated that it is very hard to predict the future and the hedge policy is in place to mitigate the City’s risk, noted that if the City was currently unhedged, power could be bought very cheaply but the City would be substantially at risk. Mr. Koenig stated that the City struggles with this issue every month and reminded members that the budget is set on an annualized basis and this report provides a snapshot of what happened in a particular month. He explained that the City gets the benefit of looking back to see what actually happened. Mr. Koenig expressed his opinion that these numbers would always be off, noting that it would be great if the numbers were exact but at least the actual cost has been below what was anticipated. Mr. Sudler moved to recommend acceptance of the reports, seconded by Mr. Blakeman and unanimously carried. Updates Green Energy Funding and Programming Members reviewed details regarding Green Energy Funding and Programming.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 19 National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer Systems (MS4) Permit Mr. Scott Koenig, City Manager, reminded members that the City was not in compliance with the National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer Systems (MS4) Permit. He advised that the City was still awaiting the final decisions from the Delaware Department of Natural Resources and Environmental Control (DNREC) regarding what the City has to do to be brought into compliance. Mr. Koenig stated that Mr. Randy Cole, Environmental Scientist, is working on all of the submissions that the City needs to undertake to comply with the permit and the City has also been working on a series of Capital Plan projects that will help support the City’s compliance related to the MS4 permitting. Garrison Oak Technical Park Project Updates Mr. Scott Koenig, City Manager, provided the following updates: City Infrastructure Mr. Koenig stated that the City was currently in the process of closing out the contracts for the Garrison Oak Technical Park (GOTP). He reminded members that the water tower was completed, had been filled, and should be in operation. Mr. Koenig noted his belief that the City had very few problems in the system as the tower was being filled. He advised that the pump station contractor, George & Lynch, Inc., completed all of the upgrades at White Oak Pump Station #5, and White Oak Pump Station #5 and the Garrison Oak Pump Station are now in operation. Mr. Koenig noted that the project also included the removal of a very small existing pump station on White Oak Road and it is now gravitating into the new Garrison Oak Station. He informed members that the road is completely paved and all of the sidewalks and landscaping are complete. Mr. Koenig stated that the Electric Department had finished the relocation of the 69 kV line and the paperwork for that project is now being completed. He noted that A-Del Construction had also finished all of their work and is completing the closeout documentation so that the City can get releases from the Conservation District and the Delaware Department of Transportation (DelDOT). Mr. Koenig stated that the GOTP now looks like an industrial park ready for new occupancy. He noted that it was his understanding from conversations with Mr. William Neaton, Economic Development Director, that the sale of Lot 13 to Advantech should be completed on Friday, February 12, 2016. Mr. Koenig advised members that the City expected Advantech to begin submission processes, noting that they had been working with DelDOT on traffic and trip generation. He stated that there has been additional interest in the lots at the GOTP and Staff is hopeful that they will bring forth additional tenants in 2016. Mr. Koenig advised that, in 2016, all of the infrastructure related to the GOTP will be in service and staff will be able to calculate all of the final costs of the infrastructure. He stated that Mrs. Donna Mitchell, Controller/Treasurer, will be able to complete the estimated paybacks and, as the City sells additional lots, the payback schedule will accelerate.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 20 Calpine Energy Center Mr. Koenig reminded members that the Garrison Energy Center, as well as the infrastructure going back to the Center, was operating. He advised that the past six (6) months of reporting show that the Energy Center is by far the City’s largest customer, except for one (1) month when it was shut down. Mr. Koenig stated that the City is seeing a return on the Energy Center as a customer; however, he reminded members that the Center is not quite meeting the revenue targets and Staff is reviewing this to determine if it is a long-term problem or just related to the shake out of the plant. Mr. Koenig noted that the plant was producing power earlier in the day, as indicated by stacks that were blowing a lot of steam. Dover Sun Park Members reviewed details regarding the White Oak Solar Park incremental cost for Fiscal Year 2016. Mr. Koenig stated that, to meet the Renewable Portfolio Standards (RPS), the City would likely be considering additional solar resources for its portfolio in the near future. He advised that the City would be considering an additional solar deal at some point since the technology has changed and the performance of these units has increased. Mr. Koenig expressed his belief that the costs for new contracts had decreased and he expected that more information regarding this matter would be brought forward for consideration in the next one (1) to three (3) years. Responding to Mr. Hare, Mr. Koenig reminded members that the City had a 20-year deal with the Dover Sun Park and it was his belief that the City had approximately 15 years remaining on that deal. He stated that the Sun Park started production to the grid in 2011. In response to Mr. Hare, Mr. Koenig stated that the City had made money from the Dover Sun Park during one (1) month, at the time of the polar vortex. Mr. Sudler moved for adjournment of the Utility Committee meeting. The motion was seconded by Mr. Blakeman and unanimously carried. Meeting adjourned at 7:39 p.m. LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE The Legislative, Finance and Administration Committee met with Chairman Hare presiding. Members present were Councilmen Cole and Sudler, and Ms. Maucher. Mr. Shevock was absent. AGENDA ADDITIONS/DELETIONS Mr. Sudler moved for approval of the agenda, seconded by Mr. Hutchison and unanimously carried.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 21 Discussion - Electric Cutoff Process Review Mr. Hare advised members that quite a few calls had been received from constituents about cutting off electric services, stating his understanding that they were past due to the City. Mr. Koenig stated that the City had been talking for quite some time about past due balances, money due to the City, and trying to get customers to meet the City half way on the issue of the utility contract. He explained that the Electric Service Handbook indicates that the City should collect payment within 21 days of the bill date, and Mr. Kirby Hudson, Assistant City Manager, and the Customer Service Department began pursuing that goal. Mr. Koenig stated that the ultimate goal was to collect 100% of the revenues due to the City in this 21-day period. He advised members that realizing this goal would create a much more efficient business environment as it would prevent the City from having to dedicate resources to creating and reviewing a cut list and cutting customer service. Mr. Scott Koenig, City Manager, provided members with information regarding utility service billing, including an updated flyer, trial balances, and sample bills (Attachment #2). He informed members that small changes were made to the utility bill and the words “Due Upon Receipt” were added to the top section to get people to focus on when the bill is actually due. He explained that the meter information near the top of the bill indicates that the service dates are for the previous month. Mr. Koenig reviewed a sample bill that reflected that power was used from December 30, 2015 through January 28, 2016, the meter was read on January 28, 2016, and the bill was sent out on February 3, 2016. The due date was February 24, 2016, 21 days from the bill date. Mr. Koenig stated that, in an ideal situation, the City would receive all payments for this billing period by 5:00 p.m. on February 24, 2016, staff resources would not have to be dedicated to creating a cut list, and staff could move on to the next billing group. Mr. Koenig advised members that changes were made to the bill to indicate it was due upon receipt and to add a notice at the bottom that the City can cut service without further notice if the total balance due has not been paid. He proposed changing the language to read, “Disconnection of service without further notice may occur if the total amount due is not received by 5:00 p.m.” on the due date, in this case February 24, 2016. Mr. Koenig explained that some customers had mailed bills or made automatic payments and in their minds had paid the bill; however, banks may take one (1) to eight (8) days to process payments. He acknowledged that the change in bills would have created a lot less friction if it had been promoted more effectively by the City, stating that he would be promoting this change as much as Council would allow going forward. Mr. Koenig stated that the City was asking its customers to gravitate toward transactions with the least cost. He advised members that staff had been spending hours upon hours on the cut list, noting that this list is not to the advantage of the City or the customers, since while service is cut the customer is not using power and the City is involved in sales and collections. Mr. Koenig stated the need to keep cash moving and prevent large account balances. He noted that the City had gravitated toward allowing customers to carry a $99 balance on their account before being considered for the cut list, which was reduced to $50 over a period of time. Mr. Koenig indicated that staff was trying to push this further to get everyone to pay within the 21-day window outlined in the Handbook, noting that there would be some painful discussions. The entire intent was to dedicate resources to other things to help improve the utility, such as a quicker response to

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 22 phone calls and customer assistance. Mr. Koenig explained that the City’s bills are different from others that begin when the bill is received and require payment in 30 days. Technically, when the City’s bill is issued, the customer is in arrears and already owes for service that has been rendered, and Mr. Koenig felt that customers do not understand this. He stated that staff would prefer to have people on the budget plan so that they receive an equal bill every month that is automatically drafted or paid through electronic transfer because those are the cheapest transactions for the City. Mr. Koenig assured members that staff had always encouraged those who have difficulty paying their bill to call the City ahead of time and it is staff’s desire to work with the customer. He stated that after the bill is due and the customer is on the cut list, this becomes more difficult. Mr. Koenig explained that the Handbook states the City is supposed to collect everything owed for a customer’s utilities before reconnecting a residence that has been cut, including the reconnection fee, stating his belief that $50 was now the minimum fee. He indicated that when $50 or $100 is added to a bill that someone is struggling to pay, it is difficult for them to get the power back on, and additional problems are created for the City when the power is not on. Mr. Koenig stated that there were difficult issues with some customers related to delinquent balances, and staff works with a number of customers whose bills are paid by others, some of whom receive fuel assistance. These transactions require time and attention. Mr. Koenig expressed the need to get the message out better through Facebook. He noted that after staff started experiencing problems, flyers were put in this month’s billing. Mr. Koenig advised members that the cut list that was based on a 21-day window had more than 300 locations in a run of approximately 1,000 bills, and 20% - 30% of customers were not paying in that window. He reiterated the goal to gravitate to the most efficient, straightforward transaction for the customer and get them current on their balances so that the City is not carrying hundreds or thousands of dollars in delinquent balances. Mr. Koenig explained that the City must also deal with the issue of delinquent taxes. He noted that these fees had been billed and this revenue was expected. He stated the importance of receiving this revenue before customers get behind, cannot catch up, and start walking away on bills. Mr. Koenig reiterated the need to better promote this change; however, he asked Council to understand the objective of obtaining the lowest cost transaction, reducing cost over time, and reducing friction and the number of activities that must be done at Customer Service. He noted that this would improve customer service so that more time, effort, and resources can be devoted to customers with major concerns or who need additional help. Mr. Sudler stated that it sometimes has taken 20 to 40 minutes before a representative from Customer Service physically gets on the phone to address concerns, which he felt was a major problem. In addition, as a landlord and a construction representative, he noted that constituents were concerned about deposits. Mr. Sudler indicated that there was inconsistency in regard to whether the deposit was three (3) times the monthly cost versus the cost for three (3) months. He indicated that he has one (1) bedroom apartments that are 425-485 square feet. Mr. Sudler indicated that he had done a survey, and the cost was $45 per month for those who are working and away for part of

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 23 the day and $110 per month for those who are there all day. He indicated that his targeted population is seniors, handicapped, and veterans. Mr. Sudler stated his understanding that if the highest cost was $110 per month, the cost for three (3) months would be $330, and the deposit should be obtained by dividing this in half. He reiterated that Customer Service representatives were saying that the cost of the deposit was three (3) times the amount rather than half of three (3) times the average cost per month, and this had occurred more than three (3) or four (4) times within the last four (4) months. Mr. Sudler recognized Mr. Ryan Carroll, Customer Service Clerk II, for providing great customer service, having a great attitude, being consistent, and representing the City well. Mr. Sudler stated that some of his residents were very upset, noting that one (1) resident, who had never had utility service with the City, stated that Customer Service wanted to charge her a deposit of over $300 for a one (1) bedroom apartment. He stated that this was also affecting the homeless who are trying to get adequate housing after obtaining a job and are faced with high deposit costs and an inconsistent process. Mr. Kirby Hudson, Assistant City Manager, advised members that there are inconsistencies because deposits are based on credit reports that are received for new customers, noting that deposits are higher if the credit report is poor. Mr. Sudler stated that the City of Dover bases their credit on whether the customer had a prior history with the City in utilities. He expressed his opinion that everyone has had issues with credit and did not think it fair that someone who had been homeless and was trying to get off the streets should have a high deposit based on their credit report. Noting that he had been a landlord for over 13 years, Mr. Sudler indicated that he knew the process and this was not the process. Mr. Hare advised members that the utility deposit could be a discussion for another time, noting that the matter being considered was bills being received. He stated, having paid electric bills in the City for 40 years and never having been late, he received his bill on January 18, 2016 with a bill date of January 11, 2016. He noted that if he waited five (5) or six (6) days and mailed his payment to Wilmington, if it got there on February 1st, his power could be shut off after having only 12 days to pay it. Mr. Koenig thanked Mr. Sudler for the kind words regarding Mr. Carroll, noting that he works in an environment that is not always kind. Mr. Koenig stated that he had not brought information regarding deposits but would be happy to talk about this in the future since he felt it was a legitimate concern, from the standpoint of both the City and its customers. In regard to Mr. Hare’s concerns, Mr. Koenig explained that the City mails the bills based on the bill date. Staff does everything they can, based on the billing address, to get the bill to people as soon as possible, which may take two (2) days or five (5) days. He stated that the Electric Service Handbook, which had been adopted, stated that the bill was due no later than 21 days from the billing date, and this had been the process all along. Mr. Koenig indicated that the reason the bill states “due upon receipt” is because of the desire for people to put it at the top of the list and understand there urgency to get the bill to the City quickly to meet the customer side of the contract. He stated his understanding that people think their bill is paid once it is in the mail, but the bill goes to a lock

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 24 box in Wilmington, which is the only place in Delaware that has a lock box processing facility. Mr. Koenig informed members that a conscious decision was made years ago to go to a lock box to save money by cutting an employee who used to open the mail. It takes time for the information to come from the lock box and into the City’s system. Mr. Koenig stated that the City was not close to having a cut list ready to go at 7:00 a.m. following a due date on the previous day at 5:00 p.m., and he did not want to get to that point but instead have people pay in the 21-day window. He stated that the City would like to put people on a budget plan and get them to do direct draft rather than mailing payment, since the mail cannot be predicted and can put their service at risk. He noted that customers who use online banking may receive an indication when the payment will be received. Mr. Hare noted that every case is different. He suggested that the wording be changed and that customers get one (1) grace period. He felt there should be a way to give a little benefit, noting that there could be people who had never missed a bill and, due to circumstances such as being away, could return to find their power had been cut off. Mr. Hare felt that there must be some way that citizens who pay well would not be penalized for being a few days beyond the date one (1) time and to be a little more citizen friendly. He stated that perhaps the requirement should be a little tougher for those who had not paid the previous bill and that power could shut be off for those who were three (3) months behind. Mr. Hare advised members that he had not been receiving calls from those who were two (2) months behind but from those who had indicated that they had mailed their checks. He commented that one (1) lady went in and paid her bill and, when it was entered, she was advised that she had a credit because Customer Service had received her initial check. He suggested giving 30 days to pay, or having a list of people who are not a problem and allowing them a few more days to pay. Mr. Hare felt that a little discretion should be used. Mr. Slavin stated that he had filled up his car with gas at Wawa today and did not have the ability to tell the cashier that he planned to pay for it about 60 days from now. He did not ask to be billed 30 days out and to be given 30 days on top of that to pay for the gas. Mr. Slavin stated that during the last two (2) budget cycles there had been talk about running City government more like a business. He felt that this was one (1) of those moments when the City chooses to run the government like a business by collecting bills in a timely fashion so that it is not carrying huge balances. He noted that this would require fortitude and there would be some rocky waters and people who have real needs. Mr. Slavin stated that he had heard that those who were in dire straits could be worked with and accommodated. He cautioned members about being selective and creating lists of people who are good payers and those who are not because that would swing the City back to the extra work that the City was trying to get rid of by trying to make this a leaner, stronger, and less expensive form of government to operate. Mr. Slavin felt that the City would get beyond the initial, burn-in period with this issue and attain a better place. He supported turning a few little levers to open it up a few more days or improving communication; however, he suggested holding the course and continuing to do what was being done since this is what staff was asked to do. Mr. Sudler commended Mr. Koenig for his work in running the City as a business, noting the need to collect money for bills so that the taxpayers would not feel this problem during the next fiscal year. He stated the need to provide a better understanding by specifying landmarks for submitting

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 25 bills by mail or electronically using the worst case scenario and suggested adhering to the deadlines for those who do not comply. Mr. Neil suggested including something on the bill, perhaps on the blank back page, which would advise customers that paying the bill immediately will help keep taxes down, and stating that bills paid by mail should be mailed seven (7) days ahead of time. Mr. Neil felt that the bill should have something to educate customers and get their attention. He suggested using graphics, noting that this document could be used as a billboard within the envelope. Mr. Neil offered his assistance with this. He stated that the City could not afford to have $0.5M in delinquent dollars, noting that this was costing the City money and he felt this should be conveyed to the taxpayers. Responding to Mayor Christiansen, Mr. Hudson stated that the first Trial Balance report reflected that amounts that were more than 30 days past the due date for trash, water, sewer, and electric. The portion of this amount that was due for electric service was $424,897.84. Mayor Christiansen requested an overview of provisions in place for special situations, such as those customers with a medical condition. Responding, Mr. Hudson stated that medical forms were developed years ago and needed to be slightly tweaked; however, they list the medical equipment that is deemed to be necessary for an account to be active and not be cut. Mayor Christiansen questioned if there were many delinquencies in this category. Responding, Mr. Hudson stated his belief that 13 of the customers in this category collectively owe the City approximately $25,000 - $30,000. He indicated that these customers feel that because they have a medical condition they can pay the City whatever they want, and some of them pay nothing. Others pay $50, $100, or whatever they want, and this had been going on for years. Responding to Mayor Christiansen, Mr. Hudson confirmed that the City was owed over $900,000 for accounts over 90 days past due. Mayor Christiansen questioned how such a high total was approved. Responding, Mr. Hudson stated that when he first came on board with the City, he was asked to help oversee the operations of the Customer Service Department and the City had consistently, over many years, allowed customers to pay their previous balance and carry the current forward to the next month. Mr. Hudson stated that when customers get behind and have a problem, they do not pay on the bill and it gets larger and larger. Mayor Christiansen stated that calls had been made to the Mayor and City Manager’s Offices stating that some of these cutoffs were punitive and questioned if this was true. Mr. Hudson stated that when staff first started cutting, the cut list averaged close to 300 per day and there was no way to keep up with this. Staff discussed this and stepped back to allow the word to get out and for customers to get used to paying within the 21-day period. Staff then started with those who had balances, which included those who were already over 30 days late. Mr. Cole agreed with staying the course and being pragmatic; however, he felt that it helped when he and Councilman Hosfelt provided a clear answer to a neighborhood watch group, noting that he and Mr. Hosfelt stopped receiving phone calls at that point. Mr. Cole advised members that they had

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 26 some meetings coming up and access to neighborhood leaders. He stated that he would like to see some type of handout that could be distributed to clear up this matter. Mr. Koenig felt that this was a great idea. He reiterated that staff did not get enough information out on handouts or social media. Following up on Mayor Christiansen’s question regarding the outstanding amounts, Mr. Koenig explained that some of the more than $900,000 was the result of businesses that were now defunct and people who had left the area. He informed members that staff had been dealing with a collection agency that was not aggressive at collecting the City’s past due balances and that Mr. Hudson was looking at acquiring different collection agency services. He stated that the City hired a part-time person to do collections a couple of years ago because this function had been removed over time to try and save dollars. Although dollars were saved in the City’s budget, there were growing revenues still due to the City and staff was not able to follow up as quickly as previously. Mr. Koenig reiterated the need to be stern on the 21 days for payment so that people stay current and do not develop large balances. Mr. Koenig stated that the City had gravitated to being less diligent than needed at collecting, and this resulted in larger past due balances. Mr. Koenig stated that staff did not anticipate the cut list escalating the way it did and they were staggered by the query when it was run. At first it was believed that this was a one (1) day situation, but it continued and staff had to bring resources in from other departments to help with the cut list, which could not be sustained. Ms. Maucher questioned if the City had a payment plan that would allow customers to pay the current bill and spread past due balances over a 12-month period. Responding, Mr. Koenig stated that the City has customized plans that must be authorized by the City Manager’s Office. Staff prefers not to do this, but had worked with those types of agreements if required to get a customer current. Customers are required to sign agreements and if they do not stick to the agreement, the City reserves the right to disconnect them. Responding to Ms. Maucher, Mr. Koenig confirmed that the City follows State law regarding medical certification, which requires 120-day renewal and a good faith effort. However, he stated that several people with medical notes believe a good faith effort is to indicate that they might pay the City at some point in the future, noting that some are not even sending a dollar. He indicated that the City is put in a terrible position when there is a customer with a medical note who must be cut. Mr. Koenig stated that staff is looking at other municipalities in the State who are much more aggressive on medical notes and will look at those things that require a medical note. He stated, for example, that nebulizers have battery packs now or cigarette lighter attachments, so it is not necessary to have full power to the house. In addition, Mr. Koenig indicated that it becomes complicated sometimes when staff receives a medical note for a certain address and that does not match up with the customer. In response to Ms. Maucher, Mr. Koenig confirmed that a medical professional is supposed to sign the note and put their license on it for it to be official. He indicated that he had recently seen notes without all the information and staff was unsure if these notes were real.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 27 Mr. Anderson felt that advertising a budget plan, putting it on the website, and recruiting people would be helpful, perhaps this spring. He indicated that a lot of people in his area have older homes and some of their electric bills jump up to $500 per month from $100 at other times of the year. Mr. Anderson noted that he makes payment on the web so that they go immediately to the site. He suggested allowing for customers to apply to enroll in a budget plan through the website to balance payments out. Mr. Anderson questioned how customers receiving fuel assistance and being helped by organizations such as Catholic Charities are handled. Responding, Mr. Koenig stated, to his knowledge, that those accounts are flagged and staff consistently works with those customers and does not turn their backs on this. Responding, Mr. Anderson noted that this was guaranteed money. Mr. Anderson questioned how the City compares to Chesapeake Utilities and the gas company with extensions. Responding, Mr. Koenig stated that he did not know the answer and staff could try to send this information out after the meeting. Mr. Anderson stated the City used to be less tolerant of carryover balances but more tolerant when it came to 10-day extensions for those who actually have an issue, such as someone who may lose 7-10 days of work due to the flu. He indicated that he would like to see the City review the 10-day extensions with a limit, such as three (3) per year, for those who are hospitalized and or have those type of issues, noting three (3) days would not even get someone to another pay period. Mr. Sudler stated for the record that he was all for accommodating the disabled but questioned when enough accommodation had been made in regards to the cutoff date. He did not believe the accommodations should supercede the rules and regulations of the City or State or that these customers should be allowed to pay when they decide to do so. Mr. Hare concurred with Mr. Sudler and felt that those who submit doctor’s slips should also submit financial information as to why there are not able to pay. Mr. Sudler suggested that a date be included. Mr. Hare stated that when people pay their electric bill, they should allow an extra five (5) or six (6) days for it to get there when they mail it; however, he noted that they may not receive the bill until five (5), six (6), or seven (7) days after it is mailed. Mr. Koenig reminded members that the Electric Service Handbook states payment is due 21 days from bill date and does not specify anything about mailing. He noted that customers can receive their bill electronically by providing their email address. Mr. Koenig stated that he receives his bill electronically on the day that it goes out. Mr. Hare stated that not everyone is on Facebook or has computers and noted that the bill indicated that it was due upon receipt. He suggested that if the bill date was January 11, 2016, that the customer be cut off on February 11th, which would give them the benefit of five (5) or six (6) days

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 28 to get the bill. Mr. Koenig stated, with all due respect, that he would not put this out as a policy. He indicated that he wanted people to feel that paying their utility bill to the City of Dover is an urgent thing that needs priority in their life. Mr. Koenig reiterated that he cannot control the mail but nearly every customer can get their bill electronically if they want, which would allow them to receive it quicker. He noted that the reading dates are almost identical or identical on every bill, so the average person knows when it is going to come. Mr. Koenig did not feel that a delay with mailing was the City’s fault, noting that the tax bill is due on a specific date and people know that it is coming. If they do not pay the tax bill, they are subject to penalties and should be subject to the electric disconnection on August 1st because they are past due, and the Clean Hands Ordinance would allow the City to cut their electric, with due notice that they are delinquent. Mr. Koenig stated the need for customers to recognize that when they signed up for electric service, this created a contract. According to the Handbook, this contract indicates payment within 21 days, and this is what staff was trying to get to. Mayor Christiansen stated his hope that the collection agency being used would be gone tomorrow. Responding, Mr. Koenig stated that this would not happen because a Request for Proposals (RFP) must be issued. Mayor Christiansen asked how close staff was to finding out this information. He felt that if this agency did not have the tenacity to do what they were contracted for, they needed to be gone. Responding, Mr. Hudson indicated that he had put together a draft RFP, stating his belief that a notice would be in the newspaper on February 12, 2016 and the RFP would go out shortly. Mr. Hudson stated that good collection agencies are hard to find and that the City of Newark uses SIMM Associates, Inc. He advised members that he would like this organization to give a full presentation if they win the award. Mr. Hudson stated that this is the only collection agency that he had found that is licensed in all 50 states. He noted that there would be no cost to the City. A penalty for the cost to pursue the customer goes to the agency and the City would receive 100% of its money. Mr. Hudson indicated that SIMM Associates, Inc. was also willing to train some of the City’s Customer Service Representatives and train them for free. Mr. Slavin thanked Mr. Hudson for the information on this company but stated that Council would not be predisposed to any one (1) company and would listen to all of them in the hopes that the City would have a competitive partner. Mr. Sudler stated his hope that there would be two (2) other applicants to do a comparison and suggested that they come to give a presentation to City Council to provide input prior to awarding the contract.

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 29 Proposed Ordinance #2016-01 with Staff Amendment #1 (SA#1) Amending Chapter 18 - Animals, Section 18-1 - Definitions, and Appendix B - Zoning, Article 3 - District Regulations, Section 1 - One-family residence zones [(R-20, R-15, R-10, R-8 and R-7)], Subsection 1.1 - Uses permitted, Subsection 1.15 - Accessory uses, limited to the following:, paragraph (d) - Keeping domestic animals and Article 12 - Definitions During the Legislative, Finance, and Administration Committee meeting of January 11, 2016, members considered proposed Ordinance #2016-01. At that time, members recommended amending the ordinance to include chickens, turkeys, ducks, and anything else staff feels would qualify and that residents be required to remove fowl within three (3) months from passage of the ordinance. During the Regular City Council Meeting of January 25, 2016, Council referred the proposed ordinance back to the Legislative, Finance, and Administration Committee. During the Council Committee of the Whole meeting of February 9, 2016, Mr. Hare advised members that he had discussed this ordinance with others and stated that there was a willingness to concede that if there was a property that was one-third of an acre in size or larger within City limits, the resident could have five (5) chickens that must be in a portable, mobile chicken house with at least four (4) square feet per bird. Mrs. Ann Marie Townshend, Director of Planning and Community Development, indicated that this structure would also need to be at least 20 feet from the property line. Mr. Hare noted that the yard would also need to be fenced. Mrs. Townshend stated that no roosters would be allowed. Responding to Mr. Cole, Ms. Townshend confirmed that Kent County was also working on this issue. Mr. Hare noted that a resident with fowl must be registered with the State and the County and must have a permit. He suggested a $25 fee for a City of Dover permit and members concurred. Mr. Anderson moved to refer proposed Ordinance #2016-01 to staff to make the changes discussed and bring it to Council for First Reading during their Regular Meeting scheduled for February 22, 2016, seconded by Mr. Sudler and unanimously carried. Ms. Maucher questioned if there was a big chicken problem in the City, and Mr. Hare confirmed that there had been some issues. Proposed Ordinance #2016-07 - Second Budget Amendment for Fiscal Year 2015/2016 Mrs. Donna Mitchell, Controller/Treasurer, advised members that Proposed Ordinance #2016-07, Second Budget Amendment for Fiscal Year 2015/2016, would go to Council for the First Reading during their next meeting. Members were advised that the proposed budget amendment included adjustments to the Beginning Budget Balance for all funds since the City’s FY15 audit had been completed. It also included any adjustments related to Council actions to date on changes in project

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 30 budgets or operating items that were not included in the original budget. Mrs. Mitchell reviewed the Financial Policy transfers of favorable carry forward balances and additional adjustments. Mrs. Mitchell advised members that in working on the electric side of next year’s budget, which was nearly complete, she noticed that staff missed reducing expenses for pension in the ordinance by $136,400. This reduction in electric expenses would be included in Proposed Ordinance #2016-07 when it is presented to Council. Mr. Anderson noted that members had been looking to pay money back into one (1) of the funds and questioned if this was being done and was on schedule. Responding, Mrs. Mitchell stated that the favorability in the power supply was included. She noted that increasing the Rate Stabilization Reserve had been discussed because of new penalties, and that would play into the forecast that staff would bring forward during the FY 17 budget process. Mr. Hutchison moved to recommend adoption of Ordinance #2016-07, seconded by Mr. Anderson and unanimously carried. Report of Independent Public Accountants for the Fiscal Year Ending June 30, 2015 Mr. William Seymour, Audit Partner, SB & Company, LLC, reviewed the Presentation to City Council dated February 9, 2016, stating that this presentation represented the required communications under generally accepted auditing standards as well as his firm’s standards. In reviewing the Scope of Services - Page 3, he noted that historically SB & Company had performed a federal grants single audit; however, the City did not meet the requirements to have that performed this year, so this was not done. Mr. Seymour advised members that SB & Company had issued an unmodified opinion on the City’s financial statements, which was the best opinion that he was allowed to issue under generally accepted auditing standards that effectively said that the financial statements as presented by management were reasonably free of material misstatement, noting that his firm discovered no instances of fraud or material weakness in internal controls and received full cooperation from management. Mr. Seymour indicated highlighted two (2) items, as follows: 1) The City was required to and did adopt Government Accounting Standards Board (GASB) 68, which required the recordation of the difference between the actuary calculated liability for pensions and the market value of investments, which required a restatement of just over $36M to the net position, lowering that net position. 2) The year after next, the City will be required to follow a similar new standard for Other Post-Employment Benefits (OPEB), and this number would be approximately $32.5M in today’s dollars. In regard to Required Communications - Page 18, Item #11, Mr. Seymour stated that a management representation letter is required as part of the audit and offered to provide it to members upon

COUNCIL COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2016 PAGE 31 request, noting that this has all the items that the American Institute of Certified Public Accounts (AICPA) requires. Responding to Mr. Sudler as to whether the City received an A+, Mr. Seymour stated that the City and the Finance Department work to put the best information forward and Mrs. Mitchell and her staff are always looking for improvements. Through this audit process, she noted areas that could be improved and Mr. Seymour advised her that staff was doing a great job and to continue to so. He felt that this was a testament to her staff and the work that they do. In response to Mr. Anderson, Mr. Seymour stated that the information applied to the entire City. Mr. Sudler moved for adjournment of the Legislative, Finance, and Administration Committee meeting. The motion was seconded by Mr. Cole and unanimously carried. Meeting adjourned at 8:51 p.m. By unanimous consent, the meeting adjourned at 8:51 p.m. Timothy A. Slavin Council President TAS/TM/dd S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Minutes\2016\02-09-2016 CCW.wpd Attachments Attachment #1 - Fact Sheet - Delmarva Black Chamber of Commerce - Ice House Entrepreneurship Program Attachment #2 - Information Regarding Utility Service Billing, Including an Updated Flyer, Trial Balances, and Sample Bills

ATTACHMENT #1 Council Committee of the Whole Meeting of 02/09/2016 , DELMARVA BlocL Chcrnber of Commerce P.O. Box 40, Clayto n, DE 1993 8 Phone: 302-450-4 501 vvww.DelmarvaBCC.org "Faith is taking the firs t st ep even when you don 't see the whole staircase." ~CE H'O USE E. REP E EURSHIP PH'O 'G RAi'' ·1 ''.An individual has not started livi11g until he can rise above tl1e 11arrow confines ofhis individualistic concen1s to the broader concerns ofall "humanity. " MLK]r. "Who Owns the Ice House (lee House)!" is an exciting entrepreneurship program as it focuses upon the "Mindset" one needs to be successful and then uses that mindset as the connection with the more day to day aspects of business as well as life-long learning and development! Specific asnects of the program include and the participants will leave with the skills and abilities to: Develop critical thinking skills that \Vill enable participants to identify and evaluate entreprenemial opportunities, Allow participants to understand managing risks and For additional "ICE HOUSE" video information learn from the results, go to the follovving YouTube.com sites: Allow participants to understand the process that enables any entrepreneurs with limited resources to • Clifton Taulbert-Author: https://www.youtube.com/watch?v =MCbigXTda2Y 0 transform a simple idea into a sustainable success, Allow participants to understand and apply • Gary Schoeniger-Founder: fundamental aspects of entrepreneurial thinking across https:/lVJ'YVW,Y9-lltl1J>g.£()_ffiLWP..!s:fu'y,=El~GMuEAM'I'l disciplines and as a means of personal and family empowerment, • The Ewing Marion Kauffman Foundation: Have participants establish goals, identify resources and [lttp: //vvvvw. kau ffman.QI,g[IDJJJtim._s:gi~L~et<;'.bJ:m determine the steps required to accomplish their goals, ok/ka uffrnan-sketch book-entrepreneuria1- Have participants identify and interact with local mindset elitfepreneurs to create a support and mentor nehvork in their community and the greater community at large. I See biography on the other side of this page! CONTACT INFORMATION: Professor Paul S. Davis BA, MS.ED., JD. Tel.: (908) 267-8504 Email: paulsdavis@comcast.net

P.O. Box 40, Clayton, DE 19938 Phone:302-450-4501 W\vw.DelmarvaBCC.org Biography: Professor Paul S. Davis BA, MS. Ed., JD has been a multi-dimensional Teacher/Professor/Educator and Training consultant on special education, staff development, continuous improvement skills and organizational development to agencies and corporations nationally. Prof. Paul has conducted workshops for more than 15,000 people during his career that bring fo1th one's individual personal creativity both at vvork and at home. He shows participants how the 6-step continuous improvement process (IAGSIE) v.rill focus their individual creativity and directly impact on their personal data- driven problem solving abilities. They have also learned the connection between problem solving, its' impacts on the workplace and how this effects one's ability to clearly communicate information. Prof. Paul displays to participants the big picture, that is, how these skills directly affect all aspects of the company from line staff to the executive offices to their day to day lives. Professor Paul S. Davis has the skills to: • Identify, preserve, synthesize, and manage effectively your organizational as well as your individual knowledge from all levels and then link your companies business goals with the Individuals' Life-Long Learning Personal Development Plans • Conduct detailed and comprehensive Training of Trainers Programs • Write, customize to level and deliver more than 40 technical and workplace skills training cmriculums for workshops and seminars as well as convert graduate level paper based training curriculum into web based multimedia programs for online synchronistic distance learning training programs • Utilize professional voice-over talent for multimedia production • Outline $1,000,000.00 plus HR department operating budgets • Manage all aspects of vendor relations • Conduct information technology (IT) seminars and presentations • Leverage 35 plus years' experience and a network of Grant Writers, HR, OD, Law, Education, Government, Sales, Software, Technical Writers and Cable Television professionals Paul S. Davis has a Bachelors' and Master's Degree from Wagner College, a Juris Doctoris from the Seton Hall University School of Law and is currently in pursuit of a Doctorate in Educational Leadership (Ed.D.). As a recognized leader on training and development in the workplace, he has taught post-graduate courses at the New York University School of Continuing and Professional Studies and New York City Technical College as an adjunct assistant professor of management and group development trainer. Prof. Paul has been a licensed and tenured teacher in New York City's' Department of Education. He has taught legal and management focused seminars in approximately 30 states as a training consultant, and adult educator. He has over 35 years' experience nationally. Prof. Paul is the owner of P. Scott Davis & Associates which focuses upon organizational development, training and education. For 21years, Prof. Paul has sub- contracted with Antone Aboud Associates, Inc. and Labor Relations Alternatives, Inc. to deliver management development programs in the corporate, government and non-profit sectors across the USA. CONTACT INFORMATION: Professor Paul S. Davis BA, MS.ED., JD. Tel.: (908) 267-8504 Email: paulsdavis@comcast.net

ATTACHMENT #2 Council Committee of the Whole Meeting of 02/09/2016 CITY OF DOVER ATTENTION! ALL BILLS MUST BE PAID IN FULL BY SPM ON THE DATE LISTED IN THE "TO AVOID DISCONNECTION" BOX ON YOUR UTILITY BILL OR YOU WILL BE DISCONNECTED! We are actively pursuing late accounts to try to reduce the amount of past due money due to the City of Dover. Utility service is billed after you have used the utility, making it a bill which is currently due. Please be sure to pay your bill no later than Spm on the date listed in the "TO AVOID DISCONNECTION "box. If you are disconnected you may have to pay a reconnect fee as well as a new deposit. We appreciate all those who have been great paying customers, and our goal is to have 100% of our account holders paying in full by the date listed! FEE CHANGES Please note that effective January 1, 2016 the following fees will be enforced as approved on December 14, 2015 by City Council. Service Fee Returned Check Fee $40.00 Utility Bill Reprints $1.00 per page Utility Afterhours Service Fee $100.00 Credit Report Fee $20.00 ALL BILLS MUST BE PAID IN FULL BY Spm on date in "TO AVOID DISCONNECTION" area on your bill or YOU WILL BE DISCONNECTED!

PREPARED 2/09/16, 11:41:46 TRIAL BALANCE PAGE PROGRAM UT425L ~~~~-~~-~~~=~---------------------------------------------------~----------------------------------------------------- CURRENT (( _OVVERER :: 3 _00 : : ) OVER 60 OVER 90 J RCV CODE DESCR ! PT I ON \.. .· TOTAL ----------------------------------------------------------------~ --------------------------------------------------------- * FiNAL TOTALS* !P CTY WATER IMPACT FEE .00 36.50 .00 .00 36.50 01 WATER SERVICE .00 26,192.88 .00 .00 26,192.88 02 WASTEWATER SERVICE .00 21,775.13 .00 .00 21,775.13 03 KENT CTY SEWER ADJ .00 16,690.19 .00 .00 16,690.19 04 GROUNDWATER ADJ .00 11,031.40 .00 .00 11,031.40 14 SEWER PENALTY .00 483.90 .oo .00 483.90 15 KCSA PENALTY .00 375.08 .00 .00 375.08 13 R E ; i D~NTi~L T~ A : ~ , ~ ":'7 ;:::'. "".'. ~ '~:~~~:~~ . ~~: ;,,_; \)V . J C: ·1:468 :83 4 19 COMMERCIAL TRASH .oo .00 .00 21 RESIDENTIAL ENERGY .00 271,890.55 .00 .00 271,890.55 '* ~v1•11•1 ,, e, \,/ I , .,.. VI It I~ IMA >t ~.~J~ .vu " v--; .-, I'(,,) I ';7 • ·• ~ I ..J .00 . 00 i .;.-;,· . 1,01;1.1J ... .... 26 COMM OUTDOOR LGHTNG .00 575.20 .00 .GO 575.20 28 RES OUTDOOR LGHTNG .00 573.69 .00 .00 573.69 31 COMMERCIAL ENERGY . 00 l'>O _1q1 _;:>') -00 -00 60,191 _25 32 PRiMARY ENERGY .00 13;178.51 .00 .00 13,178.51 40 DOVER AFB .00 56,206.91 .00 .00 56,206.91 50 ELECTRIC PENALTY .00 4,349.03 .00 .00 4,349.03 51 WATER PENALTY .00 580.51 .00 .oc 580.51 52 ELECT RET c... CHECK FEE .00 575.00 .00 .00 ,-,,, 575.00 r1 i1v o:; ., ......., ./J r- 1 r- r" T n . ,., t.-L L V I I \ I 'V on\11,.... -..JLl\!J I 'V l... CHG •VV ./:"'TV./ • V I 60 BILLED DEPOSIT .00 .oo 4,664.09 96 GREEN ENERGY ADJ .00 .00 1,329.17 * TOTAL .oo .00 521,807.38 LESS CREDIT BALANCES .00 NET TOTAL 521,807.38 3o "'DA.Y~ SAlAtJC~ FoR T'f{ASH"J WAT~~~ S~W~R P~~'O p r N~v''\ \.O~ ' i. , )

PREPARED 2/09/16, 11:42:04 TRIAL BALANCE PAGE PROGRAM UT425L CITY OF DOVER ~ ----------------::~-::::--:::::~:~~:~------------c~RREN;------------ovER-3o--------~--------ovER-9o--------------~:~::--- * FINAL TOTALS * 01 WATER SERVi CE .00 .oo 4,147.46 .00 4,147.46 02 WASTEWATER SERVI CE .00 .00 3,768.23 .00 3,768.23 03 KENT CTY SEWER ADJ .00 .00 3,079.37 .00 3,079.37 04 GROUNDWATER ADJ .00 .00 2,095.76 .oo 2,095.76 14 SEWER PENALTY .oo .00 123.27 .00 123.27 15 KCSA PENAL TY .00 .oo 104.65 .00 104.65 1e P.E"S ! DENT! ,6.L TR.A.SH .00 .00 1.793.33 .00 1.793.33 1::1 COMMERCIAL TRASH .oo .oo 343. 12 .00 343. 12 2T R:E:sTol'."r\Jt 1AL ENERGY .00 .00 28,898. 16 .00 28,898. 16 24 COMM IJT!L T.A.X 4.25% . 00 .00 167 , 90 . 00 167 . 90 26 COMM OUTDOOR LGHTNG .00 .00 177 .44 .00 177 ,lt4 28 RES OUTDOOR LGHTNG .00 .oo 53.89 .00 53.89 31 ,._, ,·, COMMERCIAL ENERGY .oo .oo 6,;n·~~ .00 6,~n:~~ Ml~C ELECTRIC .:,;:-;.; .00 .oo f ...... _, "'" ELECTRIC PENALTY t\L..Y ~'"'T 50 .oo .00 724.42 .00 724.42 51 WATER PENALTY .00 .oo 166.46 .oo 166.46 52 ELECT RET CHECK FEE .00 .00 222. 12 .oo 222. 12 53 ELECTRiC SERVi CE CHG .00 .oo 2,477.01 .oo 2,477.01 60 8 ! l_LED DEPOS !T . 00 .00 1,040.01 .00 1,040 . 01 96 GREEN ENERGY ADJ .oo .oo 70.14 .oo 70. 14 * TCT,A.L. .oo .00 0~~1L31 ') .00 55 ,97 1!. 31 LESS CREDIT BALANCES .00 NET TOTAL 55,974.31 s L/O, 35:1~66 * J ; !

-====·•it•• Account Information Coritact jl 111form ation Customer: 8:30 a.m. - 5:00 p.m. Monday-Frid ay Service Address: I Cu:stomer Service: 302-736-7035 Account #: £ _ Emiargen<:;' after 5 p.m.: 302-736-7086 Bill Date: 01/12/2 0 16 City of Dover Due Upon Receipt. W E?bsite: www .cityofdover.com Other Payment Options Automatic Bank Ora.ft kom chec~Jng Balance From Last Bill: T hank you! Last payment 1'eceiv ed: - - -- -- 20 0 . 30 on 1 2 /28/2015 Payments and adjustments mad e alte r tl1is Bill Dat•? 01;12w ill ap pear''" next bill. Gia.52) or sav ings account- sign up ne eded. Current Cha r~ge s: Equ~lb:ed Payment Plan ~ a fb<ed --,,- --- - -··· 240.6 3 budget: amount e:ich month fo r res iden - -T'-"o_,. ta,..l""A-'m-'-'-"ou,,,_n"'t""'D"'""'"u"' e :~- --A -la_ te_p_a_y_ m_er_~_c_ha_rg~ S% will :· ~ added to any balance r~ rnainin;r, rn da}'S after billing. $ ti al cu st ome rs~ ign up ne eded. 459.16 Online Payment with a credit card b ;1 ·/l~~1t ll'1g ~. Ci t•1 (• ~fil.C O f(1 f11· t i.Lii (3(•~) ? 36·70~:5 vpt 1. Meter Information · Res iden tial Mete r # Days Se r v ice Peri o d Previ ou s Presen t Mult Usage Svc Units 2606914 8 E 30 12/ 9/15 1/ 8 / 16 8001 3. 00 8 1 035 . 0 () Customer News & 483 9 9077W 30 1 2 / 9/15 l.00 102 2 .00 EL KWH 1/ 8/16 181 6 . 00 1825.0 0 1 . 00 9.00 WA TGAL Information FEE CHANGE S EFFE CT IVE 1/ 1/ 16 *RETURNED CHE CK FEE $ 4 0.00 *UT ILITY BI LL RE PRI NTS $ 1 .00 *AFTERHOURS SERVICE FEE $ 100. 00 *CRE DIT RE PORT FEE $ 2 0 . 00 1022 . 00 .1 :2 0300 Consumptio n History 1022 .00 .00017 8 Electri c usage 9 . 00 3 .0 0000 0 9 . 00 2 .650000 9 .00 1.500000 9 . 00 2.340000 J DN O S AJ,J MAM F J .vg daily kwh: 34. 0 Water Usage ... "-"-"-.U.....IL-.LIL-IL-"-~"-"-'-'--"- H .1111 •-----------m•u-11___11_. _,1..___________ JDN O SAJJM A MF J ........ T.o... Av..o id ...Di. ............. sco1111e.<::~~ -ti.on Disconnecti on of service without f urther :r.,otice may occur i f ~?!~1.ance due has not ...... been paid by 02/02/2016 Receiving a new bill wi.11 not nul :U.fy this n oi:ice. If the account is scheduled for disconnecti on, a s e J:vi c e fe€: must be paid <•long with the entire 1111-----------··--·---1-1-1-----------· amount owed . An additional deposit may be requ.:cred . Ple:ase detach this portion and remit with payment made by m.:.il or in pen on. M ~Hall correspondence to utility billing office. Notifv custom er service to update mailing address, phone ,._, ._.._. r··· ___To_b_•A_m_ou-n459.16 Q,j:J? p number, or email. ·~ t_D_u·--~ Payme nt Enc losed: City of Dover Due Upon ReC:<3ipt: 459 .16 ·-· - -- -- - -- - - - - - ' M ai<l> P ")'ments to: City of Dover Utility Po Bc:m 15040 Wilmingto n, DE 19886-504 0 l11 1lll 1I 111I11l 1I11I11 II... 1.1.11 .... 1•• 111 ... 1.1 .. 1 00001815 3000 00593600 00004591 65

Account lnfor.ati&n C:o!1tact '1nformation Customer: Service Addres•ss~: Account # : h Bill Date: .::::r•••• "•111111 bf a• I.• • 8:30 a.m. " 5:00 p.m. Monday-Friday Custome;· Service: 302-736-7035 Em,?.rgency after 5 p.m.: 302-736-7086 City ot' Dover 01/14/2016 Website: www .cityofdove1·.com Due Upon Receipt. Othet• Payment Options Balance Ero w Last Bill: .00 Thank you! Lastpai rn~nt1·ece 1ved: 7 :L· :47~n 0:1./07/2016 ·- - - - · - - - ·· · AutomatiC" Ehnk Draft from ch t cl-Jng Pay rn ~ nts and ad1usff·1ents r11ad12 after this Bi~ Date 01; 1,w·,r 1ll app~E1( o n nex t b1il. .:ir savrngs account- sign up need ed. CLrrent Charges: 175 . 93 Equa.lixcd P3.yment Pl:m a f~tdv - - - - - - --- - - - - ------~ budget amount each month fo r rt:s1dt.'.11· Total Aolount Due ; i\ late payment chat ~~~5% w ill.: > ~ added t o an}. balanc~~:~ maming ~ O days aft~r billing. $ tial w sti:1me rs----!> 1gn up needed. 175.93 Online Payment with a credit card by ·ti:,:1 1. 1(1 ~ ~VWW.(it) c,!i:lotf Cl'.rni_p or , .,11 (·~o:. j 7 :~ 6-? ((:~.; ('1 p l I. 1 Meter Information Residentia l Service Period Previous l?-cese nt l'Jul.t Usage Svc Units 1 2/ 10/15 1/11/1 6 19 37 6 .00 20774.00 I.. 00 1398.00 EL KWH Customer News & Information F£E CHANGES EFFECTIVE 1/ l/16 * RE TURNED CHF.CK lfEE S ilO . 00 11 lJTILITY BILL REPRINTS $ l . 00 *AFTERHOURS SERVICE FEE $100.00 *CREDIT REPORT FEE $ 20. 0 0 Charges for curjcen t: eye.IE!· _S_e_r_ v_i_c_ e ___________ ___ _s:onsumption ·---~'!·te . .____ Ch_a_r _,g._e___ EL RES CUSTOMER CHG 7 . 50 EL ENERGY CHG 1398. 00 . l:t'. 0300 168. 18 Consumption History EL GREEN ENERGY CHARGE :l3 98.00 .0 0 017El .25 TOTAL ELECTRIC 175.93 TOTAL CHARGES FOR PERIOD 175. 93 Electric Usage J D N 0 S l>. ,J J M A M Y ,J .vg daily kwh: 43.6 ........To ___ Ava id. ".l)i. s. co.t1z1,1e.c::::~.ti.o n .. __ .............. . Disconnection of service without f urther notice may occur i f l n 1.lance due has not been paid by 02/04/2016 Receiving a new b ill will. not nul :L :i.fy th :i.s n otice. If the account is scheduled for disco nnection, a S•'1rvice fe <• must be paid along ~.rith the entire amount owed. An additional deposit may be reqc1ired . ,_111___ 11111_1111_ _ _ _ _ _ _ _ _ _ _ _ _ _. . - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -·- - - - - - - - .. - - - . - - - - - - - - - - - Please detach this portfon a.tid remit with paymen\: ma.de ~ by mail 1r in pen: on. 1 M :di :a.II co(respondence to utility billing office . Notify custome1· sen1ice to update mailing address, phone Total Amount Due number, 01· email. 175.93 Payment Enclos ed: City of Dover Due Upon Re ceipt : 175 . 93 Ma.Ice Pa)rments to: City 1::>f Dover Utility Po Bern: 15040 Wilmin gton, DE 19886-5040 I ,If LIp1 l1,1,1 .. 1•• ll 111 l1l1ll .... l., lll .. 1l1l11I ia 0000 1{ 234 J,0001 ) 3035400000017 5932