CCW PACKET

Council Committee of the Whole Meeting Agenda March 10, 2020 - 6:00 p.m. City Hall Council Chambers 15 Loockerman Plaza, Dover, Delaware Public comments are welcomed on any item and will be permitted at the appropriate time. When possible, please notify the City Clerk (736-7008 or email at cityclerk@dover.de.us) should you wish to be recognized. Utility Committee Adoption of the Agenda 1. Evaluation of Bids - Puncheon Run Pump Station Improvements (Staff recommendation: Award the contract to Kuhn Construction Company for the City of Dover Puncheon Run Pump Station Improvement Project, Bid #20-0017PW, for $732,200) 2. Adjournment of Utility Committee meeting Parks, Recreation, and Community Enhancement Committee Adoption of the Agenda 1. Report from Silver Lake Commission 2. Presentation from the Hope Commission 3. Review of Active Recreation Area Plans (Request for Cash-in-Lieu) - 1504 and 1506 College Road (Planning Reference #SB-20-01) (Staff recommendation: Acceptance of the $4,250 Cash-in-Lieu of Recreation Area Construction donation, as the amount complies with the requirements of the Zoning Ordinance) 4. Adjournment of Parks, Recreation, and Community Enhancement Committee meeting

Council Committee of the Whole Meeting Agenda - March 10, 2020 Page 2 Legislative, Finance, and Administration Committee Adoption of the Agenda 1. Purchase of Replacement IBM Power System S914 Server (Sole Source Vendor) (Staff recommendation: Authorize the City Manager or her designee to accept the proposals and purchase the equipment and operating system) 2. Adjournment of Legislative, Finance, and Administration Committee meeting Adjournment of Council Committee of the Whole meeting S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Agendas\2020\03-10-2020 CCW AGENDA.wpd The agenda items as listed may not be considered in sequence. Pursuant to 29 Del.C. §1004(e)(2), this agenda is subject to change to include the addition or deletion of items, including executive sessions, which arise at the time of the meeting.

ACTION FORM PROCEEDING: Council Committee of the Whole (Utility) AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 02/28/2020 PREPARED BY: Jason A. Lyon, P.E., Assistant Public Works Director SUBJECT: Evaluation of Bids – Puncheon Run Pump Station Improvements REFERENCE: CIP- Puncheon Run Pump Station Improvements RELATED PROJECT: N/A APPROVALS: City Manager, Controller EXHIBITS: Exhibit A – Aerial Map EXPENDITURE REQUIRED: $732,200 BUDGET: $732,200* FUNDING SOURCE (Dept./Page in CIP & Budget): Department of Public Works- Wastewater Management, CIP Project #WW2003, CIP Project Name: Puncheon Run Pump Station Improvements Account No.: 403-41- 69-99-000-54030. *This project is fully funded through the Delaware Clean Water State Revolving Loan Fund program which is administered by DNREC, Division of Water Resources. TIME TABLE: Notice to proceed to be issued within thirty (30) days of Council approval. Project anticipated to be completed in 365 calendar days. RECOMMENDED ACTION: Award the contract to Kuhn Construction Company for the City of Dover Puncheon Run Pump Station Improvement Project, Bid #20-0017PW, for $732,200. BACKGROUND AND ANALYSIS This capital investments project will replace a failing grit removal system that is located within the Puncheon Run Pump Station. This component of infrastructure is failing and is need of an upgrade to increase operational efficiency. The equipment has exceeded its anticipated life expectancy. The pump station is currently located on the west side of South Governors Boulevard, due south of Lynnhaven Drive, adjacent to the Puncheon Run. This improvement will increase the operational efficiency of the station. The bid was advertised to the public as an Invitation to Bid in accordance with the City’s purchasing policy by the City’s Purchasing Agent under ITB #20-0017PW. Bids were opened on February 5, 2020. The City of Dover received two (2) bids. The contract values are as follows: CONTINGENCY TOTAL CONTRACTOR LOCATION BASE BID EVALUATED PRICE COSTS COST KUHN CONSTRUCTION HOCKESSIN, DE $700,000 $32,200 $732,200 $710,234* COMPANY BEARING SUDLERSVILLE, $895,000 $19,340 $914,340 $914,340 CONSTRUCTION, INC. MD *- Kuhn Construction Company was awarded a 3% reduction, due to local vendor preference City staff reviewed the submissions and found that the Kuhn Construction Company bid met all requirements for the qualifications of the project. The staff recommends awarding the contract to Kuhn Construction Company in the amount of $732,200 for the Puncheon Run Pump Station Improvement Project.

Attachment "A" Puncheon Run Pump Station 506 1109 1018 1019 1040 1022 1044 S Bra dford St 1112 228 220 216 1121 1215 1024 1050 1119 1120 1111 Monroe Ter 1025 1056 We stview Ter 1026 1131 1119 1134 1128 1030 1074 1068 1035 1127 1139 S Governors Ave 1144 312 1041 1116 1255 d Dr ll a r 1047 1149 Ma Westwood Dr 312 1049 506 1084 1205 129 1057 1052 129 1102 1210 135 1275 123 Cresce nt Dr S Sta te St 3 136 134 132 11 6 11 r nD ave 67 nh 107 99 87 77 Lyn 1052 Location of y 60 1102 Pump Station Hw 106 nt to be improved. po 1301 Du 72 88 S 98 11 54 11 56 11 56 11 74 ctor ne 11 Co 98 n De Ru at n sD r on ch e Pu n SD u po 1360 nt 12 34 Hw y 1380 16 0 100 200 400 Feet Legend I Date Printed: February 27, 2020 N File: m:\gis_data\projects\tech_mxds \jason_lyon_maps\caf_maps \caf_puncheon_run_pump_station Department: Public Works GIS City of Dover, Delaware A Pump Station Dover Parcels J

From: Lyon, Jason A To: Martine, Yvonne M. Cc: Mitchell, Donna; Harline, Matthew; Lamb, Kenn Subject: CAF - DPW March 10, 2020 Date: Thursday, February 27, 2020 4:31:31 PM Attachments: image001.png Puncheon Run Pump Station Improvements CAF 1 of 2.doc Puncheon Run Pump Station Improvements CAF 2 of 2.pdf Good Afternoon, Please find the attached CAF documents for your review. Please note the budgetary portion of the CAF, the project is fully funded by DNREC CWSRF, however, the City’s original budget is $643,000, therefore, there is a shortfall of $89,200. If needed, here is the proposal to fund with City funds: FUNDING DESCRIPTION ORIGINAL REVISED ENCUMBERED SAVINGS / REQUESTED PROPOSED SOURCE BUDGET BUDGET / SPENT REMAINING CHANGE BUDGET REMAINING Wastewater II2001 – Inflow $750,000 $740,500 $691,620 $48,880 ($48,880) $0 and Infiltration Wastewater WW1904-Silver $489,500 $429,500 $422,338 $7,162 ($7,162) $0 Lake Pump Station Wastewater WW1905- $563,200 $563,000 $529,842 $33,158 ($33,158) $0 Walker Woods Pump Station Wastewater WW2003 $643,000 $643,000 $0 $643,000 $89,200 $732,200 Puncheon Run Pump Station If you have any questions, please let me know. Thank you. Sincerely, Jason A. Lyon, P.E. Assistant Public Works Director City of Dover Department of Public Works P.O. Box 475 Dover, DE 19903 p: 302.736.7025 f: 302.736.4217 e: jlyon@dover.de.us Water / Wastewater Handbook

H C)EE l n • plrntlon •:• Col lat>orntlon •: • T r a n • formotlon A A beacon of what is possible… Wilmington HOPE Commission at The Achievement Center 38 Vandever Avenue, Wilmington, DE 19802 The Wilmington HOPE Commission (WHC), located at the Achievement Center, is Delaware’s premier correctional re-entry program, providing comprehensive re-entry support services that target crime-causing factors, shown to be predictors of recidivism, for formerly incarcerated high-risk men leaving prison and returning to Wilmington’s most distressed communities. Purpose: Founded on research-informed solutions (and using qualified professionals and agency partners), WHC provides rehabilitative treatment services and programs designed to promote successful re-entry through – risk and needs assessments, cognitive behavioral therapies, vocational readiness training, educational and peer support, behavioral health services and family-reunification programs – to reduce recidivism and improve safety in the Wilmington community. Participants (i.e. members) are provided convenient access to the services essential to successful community reintegration – all under one roof. Snapshot of the WHC from July 1, 2018 – June 30, 2019 (FY19): • 54 enrolled members (Delaware Department of Corrections referrals), 206 “walk-ins” and 820 through “In-Reach”*. (Total served: 1080) • 77% - 79% cost savings to Delaware** o **WHC cost ~$8,000 per enrolled member vs. Delaware incarceration cost per person ~ $35,000 - $39,000*** (***does not include victim cost, criminal justice system cost, crime career cost, and indirect crime cost) • 28 graduates - 100% of graduates had no new felonies in FY19 (Incarceration savings ~$1,036,000) • 100 % of members successfully completing the program were employed during FY19. 71.5% are still employed as of June 30. WHC Partnerships examples: Workforce Development: a) WHC created an Enhanced Workforce Development Program that is a vetting job opportunity pipeline for justice-involved individuals to employment with Christiana Care (CC). We have placed 3 individuals in the past year. WHC in the prior three years has placed 10 members with CC and some have used the CC employment as a springboard to other employment opportunities. b) Other workforce development partners include but are not limited to: Delaware Center for Horticulture, Masley Enterprises, Inc., Canada Dry, and Express Personnel. • Re-entry Court: A specialized collaboration between WHC, NCC Superior Court and Delaware Department of Corrections (DOC) that identifies those for sentencing to Re-entry Court and assists with intended successful re-entry. • *In-Reach Program: WHC works with DOC to recruit prospective members prior to custody release and maintain contact with those already sentenced to Re-entry Court. These “in-reach” contacts seek to build the foundation for motivation and engagement among the prospective members to increase successful re-entry. How can you help? • Be our Partner: We consistently look to partner with organizations and companies that foster mutual benefit for WHC and the partner. For example, we are always looking for Workforce Development partners that provide training and/or jobs while WHC provides vetted manpower. • Donation: We are a 501(c) 3 non-profit organization that relies on grants and donations to continue this important work and to provide the services listed above. Your much-appreciated donations can be made: by check to “Wilmington HOPE Commission” and sent to 38 Vandever Ave., Wilmington, DE 19802; or online by visiting our website: www.wilmhope.org and selecting the “donate” button.

City of Dover • DATA SHEET FOR RECREATION PLAN REVIEW Approval of Cash Donation PARKS, RECREATION AND COMMUNITY ENHANCEMENT COMMITTEE MEETING OF March 10, 2020 Plan Title: Lands of Steven D. Heiges at 1504 & 1506 College Road, SB-20-01 Plan Type: Active Recreation Area – Approval of Cash Donation (Cash-in-lieu of Recreation Area Construction) Associated with Subdivision Plan SB-20-01 Property Location: Southeast side of College Road and east of Kenton Road Property Address: 1504 & 1506 College Road, Dover Owner/Applicants: Steven D. Heiges Tax Parcel: ED-05-067.18-01-01.00-000 ED-05-067.18-01-02.00-000 Present Zoning: R-7 (One Family Residence Zone) Site Area: 1.79 acres +/- (prior to 0.10 acre +/- dedication to R.O. W.) Proposed Use: Total of five (5) single-family dwelling lots. Proposed Cash-in-lieu Donation: $4,250 Project Summary: This project proposes the subdivision of two existing parcels, a total of 1.79 +/- acres of land, into five (5) lots. The property is zoned R-7 (One Family Residence Zone). The properties are located on the southeast side of College Road and east of Kenton Road. See attached Subdivision Plan. Active Recreation Area Plan Summary: Due to the property size and unit density, this project qualifies for Active Recreation Area exemption for small developments under Zoning Ordinance, Article 5 §10.511. The project has less than five acres of land and proposes less than ten dwelling units. It is therefore exempt from the active recreation land dedication requirements set forth under Zoning Ordinance, Article 5 §10.1 and §10.2. The applicant was not required to provide a plan sheet showing land area on the site to be used for recreational purposes. However, under Article 5 §10.511 the developer is still required to make a full cash donation in lieu of a dedication of land. Zoning Ordinance, Article 5 §10.52 specifies that “this cash donation P. O. Box 475 Dover, DE 19903 Community Excellence Through Quality Service

SB-20-01 Lands of Steven D. Heiges at 1504 & 1506 College Road: Active Recreation Area – Approval of Cash Donation Report to Parks, Recreation & Community Enhancement Committee –March 10, 2020 Page 2 of 4 shall be equivalent to ten percent of the appraised value of gross land area.” Article 5 §10.52 also specifies criteria the appraisal must meet for it to be a valid basis of calculation. The applicant submitted an appraisal meeting the criteria to Planning Staff, who reviewed the appraisal to determine the required cash-in-lieu amount. The Parks, Recreation and Community Enhancement Committee will review the Cash-in-Lieu of Recreation Area Construction amount for the Subdivision of the Lands of Steven D. Heiges on College Road at their meeting on March 10, 2020. The Subdivision Plan for the Lands of Steven D. Heiges at 1504 & 1506 College Road was conditionally approved by the Planning Commission following a public hearing on January 21, 2020. As part of the approval, the Planning Commission indicated that approval was conditional on a Cash-in-Lieu of Recreation Area Construction donation being made, with the amount of payment to be accepted at a future meeting of the Planning Commission. CODE SUMMARY AND ANALYSIS: Article 5 §10 of the Zoning Ordinance addresses Open Space, Recreation and Other Public Facilities. This includes Article §10.5 where exemptions for small developments are outlined with reference to the process and calculation of the amount for cash-in-lieu of recreation area construction. Article 5 §10.7 further specifies that City Council, through the Parks, Recreation and Community Enhancement Committee, must approve the cash donation amount prior to final acceptance by the Planning Commission. (The appraisal is on file with the Planning Office). Regarding the calculation of the amount of the cash donation, the Zoning Ordinance in Article 5 §10.52 specifies that the “cash donation shall be equivalent to ten percent of the appraised value of gross land area” and that this value shall be “based on the appraisal prepared for the developer to secure construction financing.” An appraisal performed by Kaplan Appraisals, dated February 10, 2020, was submitted to the Planning Office. This appraisal identifies the value of the gross land area as $42,500. Based on this value the required amount of cash donation would therefore by $4,250. See calculation below: 2020 Appraisal of Land Value: $42,500 Cash-in-Lieu Amount = $42,500 x 10% = $4,250 CODE CITATIONS: Dover Code of Ordinances, Appendix B – Zoning, Article 5 – Supplementary Regulations, Section 10 – Open Space, Recreation and Other Public Facilities (select excerpts). Article 5 Section 10 10.1 Recreation Areas. 10.17 Cash in lieu of recreation area construction. 10.171 Determination of suitability for cash donation. If the commission determines that the construction of recreation is not practical due to close proximity to existing available recreation facilities or infeasible due to natural characteristics of the land or will not benefit the residents of the development, the commission shall require a full or partial

SB-20-01 Lands of Steven D. Heiges at 1504 & 1506 College Road: Active Recreation Area – Approval of Cash Donation Report to Parks, Recreation & Community Enhancement Committee –March 10, 2020 Page 3 of 4 cash in lieu of areas of donation to be made by the developer in lieu of a full or partial dedication of land. 10.172 Separate recreation account. The cash donation shall be deposited in a separate account to be used for parks, playgrounds or recreational purposes. 10.173 Amount of cash donation. The cash donation shall be equivalent to the appraised value of land area required in section 10.16. The land area value shall be based on the appraisal prepared for the developer to secure construction financing. This submitted appraisal shall be a copy of the original supplied to the lending institution, with that institution identified, and shall conform in all ways to the Uniform Standards of Professional Appraisal practice and be performed by an appropriately qualified certified appraiser. If an appraisal prepared for construction financing is not available, then the developer shall have an appraisal done in accordance with the procedures set forth in [sub]section 10.174. 10.174 Appeal of appraised value. If the city does not accept the land value established by the appraisal detailed in [sub]section 10.173, the city may, at the developer's expense, require another appraisal be performed. This appraisal will be let on a bid basis between at least three appropriately qualified, certified appraisers selected by the city. The appraiser(s) who prepared the original appraisal in [sub]section 10.173 cannot be a party to this appeal appraisal. 10.175 Payment of cash donation. One hundred percent cash donation provided under this section shall be collected prior to issuing the first building permit for the development. 10.5 Exemption to recreation area and open space dedication. 10.51 Exemptions for small developments. 10.511 Residential developments with less than five acres of land and less than ten dwelling units. These developments shall be exempt from the land requirements set forth in [sub]sections 10.1 and 10.2, but shall require a full cash donation to be made by the developer in lieu of a dedication of land. 10.52 Amount of cash donation. This cash donation shall be equivalent to ten percent of the appraised value of gross land area. The land area value shall be based on the appraisal prepared for the developer to secure construction financing. This submitted appraisal shall be a copy of the original supplied to the lending institution, with that institution identified, and shall conform in all ways to the Uniform Standard of Professional Appraisal practice and be performed by an appropriately qualified certified appraiser. If an appraisal prepared for construction financing is not available, then the developer shall have an appraisal done in accordance with the procedure s set forth in [sub]section 10.174. 10.7 Council approval. Prior to acceptance by the planning commission, all areas planned for public dedication, or cash donations provided under this section must be submitted to, and approved by the parks, recreation, and community enhancement committee of the City of Dover, and shall be subject to final review and approval by [the] city council. STAFF RECOMMENDATION Staff recommends acceptance of the $4,250 Cash-in-Lieu of Recreation Area Construction donation, as the amount complies with the requirements of the Zoning Ordinance. The Park, Recreation and Community Enhancement Committee will pass on their recommendation to City Council who must also approve of the amount before the Planning Commission reviews and accepts this Cash-in-Lieu of Recreation Area Construction donation amount. Ultimately, the payment of the determined donation amount is required prior to the issuance of the first building permit for these lots. The donation amount is deposited in the City’s Parkland Reserve Fund account.

SB-20-01 Lands of Steven D. Heiges at 1504 & 1506 College Road: Active Recreation Area – Approval of Cash Donation Report to Parks, Recreation & Community Enhancement Committee –March 10, 2020 Page 4 of 4 Attachments: • Subdivision Plan SB-20-01 Lands of Steven D. Heiges at 1504 & 1506 College Road • Select pages from the appraisal of 1504 & 1506 College Road completed on February 10, 2020

J 1--------------------------------------1~ ~ Kaplan Appraisals ~ I ! J J February 11, 2020 J Steve Heiges 1 Chadwick Drive J Dover, De 19901 J RE: Appraisal Report: 1504 & 1506 College Road Dover, DE 19904 J Dear Ms. Cheri Bryant: I Enclosed is the summary appraisal report for the above mentioned properties, as assembled, for internal accounting. The report is prepared in accordance with the standards and reporting requirements of the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation and Title IX of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The final opinion of value of Subject property as assembled: $42,500 The effective date of this report is: February 10, 2020. If you have any questions, please don't hesitate to call. Very truly yours, ] Lr l l 44 Songbird Lane, Dover, DE 19904 L.-------------------------------------1. . Telephone: (302) 670-5698 I lli,.. ..4

LAND APPRAISAL REPORT FIie No, tleiges2020 Borrower STEVE HEIGES Census Tract N_/_A____Map Reference SEE Bl:LOW ~ Property Address 1504 & 1506 COLLEGE ROAD • City D_O_V_E_R_ _ _ _ _ _ _ _ _ _ _ _ _ __ county KENT State_DE_ _ _ _ _ _ _ Zip Code 19904 • Legal Description _SE_E_D_E_E_D_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _--,,,,,,.,-----,,...=,----,--,---,,...=,-------1 Sale Price$ _ _ _ _ _ _ Date of Sale _ _ _ _ _ _Loan Term_ _ _ _~yrs. Property Rights Appraised [Kl Fee Leasehold LJ De Mlnlmls PUD D Actual Real Estate Taxes$ 1049, 60 (yr.) Loan charges to be paid by seller$ _ _ _ _ other sales concessions ~~~=~----------1 • Lender/Client STEVE HEIGES Address 1 CHADWICK DRIVE, DOVER, DE 19901 occupant VACANT Appraiser CARL B. KAPLAN Instructions to Appraiser ESTIMATE FEE SIMPLE INTERESTS OF AN ASSEMBLED LOT LOCATED IN THE CITY OF DOVER. Location Urban D [Kl Suburban Rural D Good Avg. Fair Poor Built Up over 75% D [Kl 25% to 75% Under 25% D Employment Stablllty om •• Growth Rate D Fully Dev. Rapid D [Kl Steady Slow D Convenience to Employment •• m •• om •• m Property Values Increasing D [Kl stable Deolinlng D Convenience to Shopping Demand/Supply ' i Shortage D [Kl In Balance Over Supply D Convenience to Sohools •• om •• om Marketing Time Under 3 Mos. D [Kl 4-6 Mos. Over B Mos. D Adequaoy of Publlo Transportation : Present Land Use~% 1 Family • _ _ %lndustria-1- %2-4 Family r. Apts. 'To Vacant 20% OTHER-- %condo -- %Commerolal Recreational Facllltles Adequacy of Utilities •• om •• ~ Change In Present Land Use 'ii D Not Likely ('} From To__________ --0 Likely('} Taking Place(') D Property Compatibility Protection from Detrimental Conditions •om m •• •• Predominant Occupanoy owner D Tenant _ _ _¼ Vacant Single Family Prloe Range $_ _ _ _ _ _ to$ _ _ _ _ _ _ Predomlnant Value$_____ D Police and Fire Proteotlon Gsneral Appearance of Properties om •• om•• • Single Family Age _ _ _ _yrs. to _ _ _ yrs. Predominant Age _ _ _ _ _yrs. Appeal to Market om • Comments Including those factors, favorable or unfavorable, affecting marketability(e.g. publlo parks, schools, view, noise} SUBJECT IS LOCATED ON THE EAST SIDE OF COLLEGE ROAD, WITHIN THE CITY OF DOVER LIMITS. THIS AREA HAS PREDOMINATELY SINGLE FAMILY HOUSES WITH SPORADIC SPECIAL PURPOSE PROPERTIES ALONG COLLEGE ROAD. MAJORITY OF HOUSES IN THE AREA ARE AGED AND APPEAR TO BE IN FAIR CONDITION. SUBJECT IS WITHIN A CONVENIENT DISTANCE TO LOCAL SHOPPING AND OTHER AMENITIES. Dimensions SEE DEED = 1 . 81 Sq. Ft. or Acrlls Ocorner Lot Zonlngclasslfloatlon R7 (ONE FAMILY) Present Improvements [Kl do do not conform to zoning regulations D Highest and best use: [Kl Present use l..,_..,I...O..;.th"-er'-'(...,sp-"e-'ol;.:,fY,_l_ _ _ _ __,,_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _---1 Public Other (Describe) OFF SITE IMPROVEMENTS Topo _L_E_V_E_L_/C_O_N_S_I_ST_E_N_T_ _ _ _ _ _ _ _ _ _ _ _ _ _ _----1 Eleo. [Kl ______ Street Aooess: [Kl Public O Private Slze_LA_R_G_ER_T_HA_N_N_O_RM_ _ _ _ _ _ _ _ _ _ _ _ _ _ _----1 Gas [Kl ______ Surface ASPHALT Shape _I--=R_R,..E_G_ULA ____R - - - - - - - - - - - - - - - - - - - - - - - 1 Water [Kl ______ Maintenance: [Kl Public D Private Vlew:..._RE_S_I_D_EN_T_I_A_L_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _--l D Storm Sewer D Curb/Gutter Drainage • San. Sewer[!] ______ Underground Elect. & Tel. n Sidewalk TO STREET Fl Street Lights Is the pro-pe-rl:-yc-lo-ca-:1-ed:-i-n.-HccU:::D--:-ldc-e-ntc-:if:-ied.,.S""p-e--=ci--=a1-=F=-10-od':--:H-:-a-za-rd.,.A:-re-a--:-?----p[KJ'9:N-:-o-iaO=s-Y•-•1 _comments (favorable or unfavorable Including any apparent adverse easements, encroachments or other adverse conditions) NORMAL UTILITY EASEMENTS. The undersigned has recited three recent sales of properties most similar and proximate to subjeot and has considered these in the market analysis. The description lnoludes a dollar adjustment, reflecting market reaction to those Items of significant variation between the subject and comparable properties. If asignificant Item In the comparable property Is superior to, or more favorable than. the subjeot property, a minus (-} adjustment is made, thus reducing the indicated value of subject: If a significant item In the comparable ls Inferior to, or less favorable than, the subject property, a plus ( +) adjustment is made, thus increasing the Indicated value or the subject. ITEM Subject Property COMPARABLE NO. 1 COMPA.RABLE NO. 2 COMPARABLE NO. 3 COLLGE ROAD 2741 MCKEE ROAD 360 FORK BRANCH ROAD LOT 31 , W DEENEYS ROAD Address DOVER, DE DOVER DOVER DOVER Pro><imltytoSubj. 11111111111111111111111111111111111 ONE MILE THREE NILES ONE MILE i:u..:cs=ale"'-sP:..::rlc:.:c•'------+-------1+1+1111lllllllllllll=III 11111111 $ 45,100111111111111111111111111I $ 52, 70( llillllllllllllllllllilllll $ 35,000 Prloe 1111111111111 ltHIHIlft-C-l 111 l$4=5-cc1occ-o----'-'-'-'-'-"lllffI/HI+IIHiIlffIIHIIHIH111-IH 111 ltH1 1 IIH-$"-=s=21=00,----c~-'-"Hl1IHI- 111-IH 11111-IH I II IH+I 11111-1+11111* 11* 11111'IH+111/+-"$~35,.,..DO.....,O_::_:...:..:..c_:._i ••ro-a_ta_S_ou-rc-e---+-DE--E..,.,D-,-s--=u=R=V-EV~--1'-BwR.u.IGwH.u.Tw.MLS, KC .ASSESSMENT BRIGHT MLS, KC ASSESSMENT BRIGHT MLS, KC ASSESSMENT ' Date or Sale and DESCRIPTION DESCRIPTION : +(-)$ Adjustment DESCRIPTION : +(•)$ Adjustment DESCRIPTION : +(-)$ Adjustment ~ Time Adjustm_en_t_+2_/_2_0_20_ _ _ _ _• 3_/_2_0_1_7_ _ _ _--,:_+2_7_0_6_ _• 6_/_2_0_1_9_ _ _ _--.:_ _ _ __.5_/_2_0_1_7_ _ _ _~:+_2_1_0_0_ ___, Ii, Location SUBURBAN DOVER SIMILAR : SIMILAR : INFERIOR 1+2000 Site/View +/- 1.81 ACRES +/- 2.8 ACRES :-10000 +/. 3.3 ACRES :-15000 +/- 2.0 ACRES SEWER YES SEPTIC :+1500 SEPTIC :+1500 SEPTIC :+1500 ' WATER YES WELL i+1500 )'/ELL !+1500 WELL :+1500 SHAPE IRREGULAR IRREGULAR : IRREGULAR :+2500 IRREGULAR WOODED PARTIAL PARTIAL : PARTIAL : COMPLETELY Sales or Financing CONVENTIONAL !, CONVENTIONAL !, CONVENTIONAL Concessions : : :~:;:~ •iiiiiii 1 11111i1i11i1 11~1i~i,~ii: CommentsonMarketData: A SURVEY OF ONE TO FOUR ACRE SINGLE FAMILY PARCELS IN THE DOVER MARKET AREA WAS UNDERTAKEN TO 4::::: 4::::: 1 1 i11111i11 11i1 11~1i~i,~ii: 4::::: 1 rn1im1i1 11111i~i111ii: DERIVE CDHPARABLE DATA. SUBJECT IS VERY UNUSUAL BEING LOCATED IN THE CITY OF DOVER HAVING A LARGER THAN NORMAL LOT SIZE, THEREFORE, DUE TO LACK OF DATA, THE SURVEY WAS EXTENDED TO THREE YEARS, Comments and Conditions or Appraisal: THIS APPRAISAL IS HADE WITH THE ASSUMPTION THE TWO PARCELS ARE ASSEMBLED AS ONE LOT, • Final Reoonolllatlon: THE FINAL ESTIMATE OF VALUE FALLS WITHIN THE MIDDLE TO HIGH END OF THE ADJUSTED RANGE, . , "'. IESTIMATE THE MAI KET1VALUE, AS DEFINED, OF UBJECT PROPERTY AS OF FEBRUARY 10 2020 lobe$ ________ 42,500 ...__, ' t\ Appralser(s} ' \ Review Appraiser (If applloable) ---,,-=;--:-,.,---,=rc:c==-==-:-:---:---; CARL \ ~PLAN - _/ LJ Did LJ Did Not Phyaloelly Inspect Property

SITE PAIA; 1. TAX PARCEL NUMBER, ALL OF ED-05-068.19-01-01.00-000 ALL OF ED-05-068.19-01 -02.00-000 PART OF ED-05-067.17-01 -79.00-000 2. 51TE ADDRESS, PARCEL 01.00 PARCEL 02.00 1506 COLLEGE RD 1504 COLLEGE ROAD DOVER, DE 19904 DOVER, OE 19904 3. OWNER OF RECORD, COLLEGE ROAD STEVEN D. HEIGES 1 CHADWICK DRIVE DOVER, DE 19901 302-698- 7725 COLLEGE ROAD KENTON ROAD KENTON ROAD 4. ENGINEER OF RECORD, TROY L. ADAMS, P.E. MOUNTAIN CONSULTING, INC. 103 S. BRADFORD STREET PARCEL DOVER, DE 19903 LOCATION P, 302- 744-9675 PARCEL F, 866-672-6428 LOCATION 5. EXISTING ZONING, R-7 6. PROPOSED ZONING, R-7 7. DEED RECORDS, PARCEL 01.00 - 7479-284, 4399-249, 3312-166 PARCEL 02.00 - 7479-284, Q-36-59 8. EXISTING USE OF PROPERTY, VACANT PROPOSED USE OF PROPERff RESIDENTIAL 9. TOTAL NUMBER OF LOTS: EXISTING = 2 PROPOSED 5 KENT COUNTY KENT COUNTY 10. TOTAL ACREAGE WITHIN STREETS, N/A PARCEL MAP GIS MAPPING 1"=200' LOCATION MAP GIS MAPPING 1"=800' 11. TOTAL AREA WITHIN OVERALL PARCEL 01.00 - 53,731.0 S.F. 1.2335± ACS LOT PRIOR TO SUBDIVISION, PARCEL 02.00 - 24 562.3 S.F. 0.5638± ACS TOTAL 78,293.3 S.F. (1.7973± ACS) 12. TOTAL AREA DEDICATED TO R.O.W., 4,478.2 S.F. (0.1028± ACS.) 13. TOTAL AREA WITHIN EACH LOT 1 - 37,443.4 S.F. (0.8596± ACS) ----- - ---- _ _ _ _ _ _ --~E~X~RIGHT-OF-WAY _CMF - - - - - - - - •• I - - - - CMF -------- LOT AFTER SUBDIVISION, LOT 2 - 9,891.0 S.F. (0.2271± ACS) LOT 3 - 8,404.5 S.F. (0.1929± ACS) EX. EDGE OF PAVEMENT LOT 4 - 8,826.9 S.F. (0.2026± ACS) LOT 5 - 9 249.3 S.F. (0.2123± ACS) TRAVEL LANE ~ 0 COLLEGE ROAD TOTAL 73,815.1 S.F. (1.6945± ACS) - -,,,____ PHYSlc:./lt. CENTERLINE U!, _ _ _ _ KCR 99 - MINOR ARTERIAL - WIDTH VARIES TRA V£L LANE ~ p ~ .. 1,, 14. IMPERVIOUS COVERAGE PERMITTED, 40% MAX. EX. EDGE OF PAVEMENT "' .. . ... .. . ... .. -· -•. .. -- .... ' J I 15. WATER SUPPLY, CITY OF DOVER ..... . . -- . / ' \ 0 11PN 30" ~•_..lf E . ·.. -.·.-: ... 1 6. SANITARY SEWER: CITY OF DOVER ·•- CRF KX·; ,... ~ ,:. PROP_ ( : ~ )?< · X·,- 17. PERMANENT CORNERS, FOUND, 4 CAPPED REBAR FOUND, 3 IRON PIPE FOUND SET, NONE EX. DRIVEWAY .,,v )< x· xix >f<Y DRIvEwAY. ~ ... (50.00'j>(: ; (SHARED): )<.i(50,00'), ~ .)' ~ lO :,:it: x /' A , . -.,I' > X YXX X ·•~ .,;.,.; (50.00) . •~ 0 0 0 EX. DRIVEWAY EX. \ DRIVEWAY 0 I I ::··PROF':.: EX N DR.IVcWAY ~ Dfil;%AY 18. THIS PROPERTY IS NOT AFFECTED BY THE FLOODPLAIN AS SHOWN ON I MAP NUMBER 10001C0169J, EFFECTIVE DATE MAY 5, 2003. 19. POSTED SPEED LIMIT, 35 MPH 20. THE PROPOSED DRIVEWAYS MUST BE COMPLETED AS PAVED, HARD, DUST FREE SURFACE IN NOW/FORMERLY EDWARD W. DEMBY ED-05-067 17-01 - 78 00-00001 151 0 COLLEGE ROAD ... '-" I • 1 n:::::..:::::::: --PE· ---+ '":PE:~ I ACCORDANCE WITH CITY OF DOVER ZONING ORIDANCE ARTICLE 6, SECTION 3.6 (A). 21. THE DELAWARE STATE SEDIMENT AND STORMWATER REGULATIONS AND EROSION AND SEDIMENT D/R X-0028-0131 ZONING, R-7 '' :E - - ; f· ~~- 0~ CONTROL REQUIREMENTS SHALL BE SATISFIED FOR THIS PROJECT PER THE APPROVED APPLICATION 0 FOR STANDARD PLAN APPROVAL FOR RESIDENTIAL CONSTRUCTION. ' CR ~ 37,443.4 S.F. 9,891.0 S.F. 8,404.5 S.F. (9 8,826.9 S.F. 9,249.3 S.F. 0.8596± ACS. 0.2271± ACS. 0.1929± ACS. 0.2026± ACS. 0.2123± ACS. EASEMENTS A SEVEN AND ONE-HALF FOOT (7.5') WIDE PUBLIC UTILITY EASEMENT SHALL BE PROVIDED ALONG ALL SIDE LOT LINES. A FIFTEEN FOOT (15') WIDE PUBLIC UTILllY EASEMENT SHALL BE PROVIDED ALONG ALL REAR LOT LINES. A TEN FOOT (10') WIDE PUBLIC UTILITY EASEMENT SHALL BE SHALL BE PROVIDED ALONG ALL FRONT LOT LINES. 0 1/P NOW/FORMERLY (TBR) FRED WASYLKOWSKI, JR. c/o SHIRLEY McDOUGALL CHARLES WASYLKOWSKI ROBERT W. WASYLKOWSKI MICHAa B. WASYLKOWSKI m BULK STANQABPS ZONING, R- 7 (ONE-FAMILY RESIDENCE) BETTY JANE lYRON "" BULK AREA RESTRICTIONS SHIRLEY McDOUGALL D " I RUSSELL VERNON HENRY D MIN. MIN. LOT AREA, LOT WIDTH, 7,000 S.F. 50' SANDRA W. CROWE " -I'- 100' ED-05-067.17-01 - 79.00-00001 MIN. LOT DEPTH, MIN. FRONT YARD, 20' 915 KENTON ROAD MIN. SIDE YARD, 5' I-24-007B • MIN. REAR YARD: 30' ZONING, R-7 < OFF-STREET PARKING, 2 SPACES/DU LOT COVERAGE (MAX.) 40% LEGEND - - - - - - - - EXISTING PARCEL LINES / RIGHT-OF-WAY _;pc// 50.71 • --- - - - - _ 50,77' -- ~ 1/ PARCEL LINE PROPOSED BY THIS PLAN 16::i3_~48;;;,,-.1__ _ ADJOINING PARCEL LINE ~·- CENTERLINE OF ROAD NOW/FORMERLY / NOW/FORMERLY ,f THE CITY OF DOVER MILFORD HOUSING DEVELOPMENT CO. - - - P E - - - PERMANENT EASEMENT ED-05-067.18-01-85.00-00001 ED-05-067.17-01 -80.00-00001 ~ I I 401 HARMONY LANE CRF (CAPPED REBAR FOUND) 1293 WALKER ROAD D/R F-36-263 ZONING, 10 I I D/R 8859-0132, 7774-0112, 7774-0108, 6675-0028, 7774-0102 ZONING, RG-3 NOW/FORMERLY THE CITY OF DOVER I /PF (IRON PIPE FOUND) / ED-05-067.18-01 -04.00-00001 EXISTING LIGHT POL[ // I I COLLEGE ROAD D/R 9057-0329 ZONING, R-7 EXISTING UTILITY POLE EXISTING FIRE HYDRANT I I PROPOSED SIDEWALK I I I 11-IE PURPOSE OF 11-IIS PLAN IS TO SUBDMDE lWO (2) EXISTING PARCELS INTO FIVE (5) RESIDENTIAL LOTS WITHIN Tl-IE R-7 ZONING DISTRICT. I !is" ~ I ✓ PRELIMINARY MINOR SUBDIVISION PLAN FOR .... .... .... J ,~ I 1504 & 1506 COLLEGE ROAD EAST DOVER HUNDRED - CllY OF DOVER KENT COUNlY - STATE OF DELAWARE '-...._ .... ,,.,,Itr? 103 S. BRADFORD ST. mountain 11. REVISIONS CHECKED BY DOVER, DE 19904 STATEMENT OE OWNERSHIP ENGINEER CERTiflCAJJON ',~/ P.O. BOX 558 I, STEVEN D HEIGES, HEREBY CERTIFY THAT I AM THE OWNER OF THE PROPERTY DESCRIBED AND SHOWN ON THIS PLAN. THAT THE PLAN WAS MADE AT MY DIRECTION, AND THAT I ACKNOWLEDGE THE SAME TO BE MY ACT AND DESIRE THE PLJ\N TO BE DEVELOPED AS SHOWN I, TROY L. ADAMS, HEREBY CERTIFY THAT I AM A REGISTERED PROFESSIONAL ENGINEER IN THE STATE OF DELAWARE AND THAT THE INFORMATION SHOWN HAS BEEN PREPARED UNDER MY SUPERVISION AND TO THE BEST OF MY KNOWLEDGE AND BELIEF REPRESENTS GOOD ENGINEERING PRACTICES AS CRF consu 1ng DOVER, DE 19903 T-302-744-9875 F-866-672-6428 IN ACCORDANCE WITH ALL APPLICABLE LAWS AND REGULATIONS. REQUIRED BY THE APPLICABLE LAWS OF STATE OF DELAWARE. D 1S 30 60 GRAPHIC SCALE SCALE: 7" = 30' DRAWN BY: TLA DESIGNED BY, CHECKED BY, TLA DRAWING FJS MINOR.DWG NAME SIGNATURE DATE TROY L. ADAMS P.E. LIC. NO. 12002 DATE COMM. FILE SHEET DATE, 10-17-19 1 OF 1 NO. NO. NO. 2019 MOUNTAIN CONSULTING

COMMITTEE ACTION FORM PROCEEDING: Council Committee of the Whole (LF&A) DEPARTMENT OF ORIGIN: City Manager’s Office DATE SUBMITTED: March 2, 2020 PREPARED BY: Matt Harline, Assistant City Manager SUBJECT: Purchase of Replacement IBM Power System S914 Server (Sole Source Vendor) REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: Donna Mitchell, City Manager EXHIBITS: A – Financing Proposal for IBM Power System S914 Server (Sole Source Vendor) B – Financing Proposal for IBM AS400 Operating System and Maintenance EXPENDITURE REQUIRED: $12,856.44 for three years; Total $38,569.32 AMOUNT BUDGETED: $0.00; Available budget $19,800 FUNDING SOURCE (Dept./Page in CIP & Budget): 101-16-22-99-000-54028 TIME TIMETABLE: Completion by end of FY 2019-20 RECOMMENDED ACTION: Authorize the City Manager or her designee to accept the proposals and purchase the equipment on operating system. BACKGROUND AND ANALYSIS The extended transition from HTE to MUNIS for our Enterprise Resource Planning (ERP) software has created the need to maintain this system. In the original timetable, IT staff had planned to extend the life of the current AS400 server (on which HTE runs) until the transition was complete. This fall, long after the budget process was completed, we were informed by IBM that they would no longer support the former machine and its operating system. The server is 9.5 years old. While staff would be comfortable with a transition lasting a few months, the current calendar shows the final close out of the MUNIS project running into 2023. There is funding available for this in the IT budget for “Server Lifecycle”, if we buy it on a three-year lease purchase plan. It is important to move forward on this as soon as possible because support for our current AS400 will expire at the end of March. There are two separate leases, one for hardware and one for software. The payment period is for 3 years and the total additional financing cost is $2,324.32. At the end of the three years, we would own the server outright and continue to have support to the end of 5 years. At that time, the City can decide to purchase separate, additional maintenance as we have done for the current machine. Annual payments will be $12,856.44 paid in monthly installments. The expense for the rest of Fiscal Year 2020 will be $4,285.48. There is $19,885.65 remaining in the account for this fiscal year (FY2019-20). Originally the money was set aside to replace the main SQL server but by virtualizing servers we have the money available. City Staff recommends that the Council authorize the City Manager or her designee to accept the proposals and purchase the equipment on operating system.

Financing Proposal for CITY OF DOVER 2019-12-05 Executive Overview IBM Global Financing (IGF) is pleased to provide CITY OF DOVER with a PLANNING RATE financing proposal for your acquisition. IGF is the world's largest IT financing provider, with over 25 years of experience helping customers with flexible financing offerings. As a captive lender, IGF can help you take advantage of very competitive rates that are driven by our unique position in the marketplace. Financing is an effective way to obtain the products you need to maintain your competitiveness and grow your business without breaking the budget. Financing can also help you accelerate the ROI of your investment by helping you smooth out high upfront costs into predictable payments that more effectively match costs to expected benefits. It can help you better manage cash flow and budgets because of the predictability that financing payments provide you. Our financing solutions can help you stay within budget by turning up-front costs into affordable monthly payments as well as: - Control expenses - Match cash flow to expected business benefits - Conserve cash for other strategic initiatives In the current economic climate, it's crucial that your business continue to invest in critical technology to maintain a competitive edge. IBM Global Financing can help you finance your entire IBM solution by providing access to capital and customized financing structures that best fit your requirements. Please review the attached Business Case Overview and remember that choosing IBM Global Financing can help you acquire the solutions you need NOW and simplify the way you manage your overall IT strategy. IBM Global Financing offerings are provided through IBM Credit LLC in the United States, IBM Global Financing Canada Corporation in Canada, and other IBM subsidiaries and divisions worldwide to qualified commercial and government customers. Neither IBM nor any other IBM organization or affliliate makes any representation whatsoever regarding your accounting treatment applicable to the transaction included in this proposal. IBM will account for receivables under this transaction as financing receivables for U.S. reporting purposes. We look forward to discussing this proposal with you in greater detail at your earliest convenience. This document is provided as an accommodation and solely as a reference tool for planning purposes. It is not intended and does not create an offer or binding legal obligation on the part of IGF to provide financing on the terms outlined herein . Any such offer or commitment would be in writing and would be subject to and preceded by satisfactory completion of the requisite credit and business reviews . The receipt of all customary internal IBM Global Financing approvals and its effectiveness would be conditioned upon the prior execution of documentation acceptable to both parties.

Lease/Financing Proposal for CITY OF DOVER Kathryn Lamberth kathryn.lamberth@ibm.com 2019-12-05 Rates and offerings listed herein are subject to change, extension , or withdrawal without notice. Assumptions Summary Term in months 36 Total Purchase Price Financed $19,693.14 Installation Date 2020-01-31 Total Periodic Payment $20,948.40 Rate Expiration Date 2020-01-04 Proposal Number X0009844301 Payments are Monthly in Arrears under a/an M1S - S&L MLA (Master Customer Number 1802535 Lease Agreement) contract Credit Request Number Not available New Financing Purchase Total Amount Fin Periodic Lease Qty Price Financed Type Rate/K Payment 9009-41A - IBM POWER SYSTEM S914 1 $15,462 .74 $15,462.74 FP1 29.4834 $455.89 3580-H6S - TS2260 Tape Drive Model H6S 1 $4,230.40 $4,230.40 FP1 29.7874 $126.01 TOTALHW $19,693.14 $581.90 TOTAL $19,693.14 $581.90

Step Payment Summary Description Qty Step term From To Step rate Step payment 9009-41A- IBM POWER SYSTEM S914 1 36 1 36 29.4834 $455.89 3580-H6S - TS2260 Tape Drive Model H6S 1 36 1 36 29.7874 $126.01 Payment Summary 2020 2021 2022 2023 Jan $581 .90 $581 .90 $581 .90 Feb $581.90 $581.90 $581 .90 Mar $581 .90 $581.90 $581.90 Apr $581 .90 $581 .90 $581 .90 May $581 .90 $581 .90 $581 .90 Jun $581 .90 $581 .90 $581.90 Jul $581 .90 $581.90 $581 .90 Aug $581 .90 $581 .90 $581 .90 Sep $581 .90 $581 .90 $581 .90 Oct $581 .90 $581.90 $581 .90 Nov $581 .90 $581 .90 $581 .90 Dec $581 .90 $581.90 $581.90 Total $6,400.90 $6,982.80 $6,982.80 $581.90 PRESTATED EOL PURCHASE EOL PV% PV¾of EOL Purchase Including Total Amount Initial Periodic Initial Purchase Option EOL Exercise Description Financed Payment Payments Option% Amount Purchase Date 9009-41A- IBM POWER SYSTEM S914 $15,462.74 $455.89 98.37% - $1.00 98.38% 2023-02-01 3580-H6S - TS2260 Tape Drive Model H6S $4,230.40 $126.01 99.39% - $1 .00 99.41% 2023-02-01 Total Prestated EOL Purchase $19,693.14 $581.90 $2.00 Average estimated Interest Rate is 4.06% Grow your business without breaking the budget. Financing can also help you accelerate the ROI of your investment by helping you smooth out high upfront costs into predictable payments that more effectively match costs to expected benefits. It can help you better manage cash flow and budgets because of the predictability that fixed financing payments provide you . This offering provides low monthly payments to meet budgetary requirements . - Improve your ROI payback rate - Pay for your product acquisition with fixed , predictable payments - Preserve your cash flow and other lines of credit Additional financing options such as annual payments, or step payments may be available upon request. DISCLAIMER : IBM Global Financing offerings are provided through IBM Credit LLC in the United States , IBM Global Financing Canada Corporation in Canada, and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates and availability are based on a client's credit rating , financing terms, offering type, equipment and product type and options, and may vary by country. Non-hardware items must be one-time, non- recurring charges and are financed by means of loans. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice and may not be available in all countries. This document is provided as an accommodation and solely as a reference tool for planning purposes. It is not intended and does not create an offer or binding legal obligation on the part of IGF to provide financing on the terms outlined herein . Any such offer or commitment would be in writing and would

be subject to and preceded by satisfactory completion of the requisite credit and business reviews. The receipt of all customary internal IBM Global Financing approvals and its effectiveness would be conditioned upon the prior execution of documentation acceptable to both parties.

Financing Proposal for CITY OF DOVER 2019-12-05 Executive Overview IBM Global Financing (IGF) is pleased to provide CITY OF DOVER with a PLANNING RATE financing proposal for your acquisition. IGF is the world's largest IT financing provider, with over 25 years of experience helping customers with flexible financing offerings. As a captive lender, IGF can help you take advantage of very competitive rates that are driven by our unique position in the marketplace. Financing is an effective way to obtain the products you need to maintain your competitiveness and grow your business without breaking the budget. Financing can also help you accelerate the ROI of your investment by helping you smooth out high upfront costs into predictable payments that more effectively match costs to expected benefits. It can help you better manage cash flow and budgets because of the predictability that financing payments provide you . Our financing solutions can help you stay within budget by turning up-front costs into affordable monthly payments as well as: - Control expenses - Match cash flow to expected business benefits - Conserve cash for other strategic initiatives In the current economic climate, it's crucial that your business continue to invest in critical technology to maintain a competitive edge. IBM Global Financing can help you finance your entire IBM solution by providing access to capital and customized financing structures that best fit your requirements . Please review the attached Business Case Overview and remember that choosing IBM Global Financing can help you acquire the solutions you need NOW and simplify the way you manage your overall IT strategy. IBM Global Financing offerings are provided through IBM Credit LLC in the United States, IBM Global Financing Canada Corporation in Canada, and other IBM subsidiaries and divisions worldwide to qualified commercial and government customers. Neither IBM nor any other IBM organization or affliliate makes any representation whatsoever regarding your accounting treatment applicable to the transaction included in this proposal. IBM will account for receivables under this transaction as financing receivables for U.S . reporting purposes. We look forward to discussing this proposal with you in greater detail at your earliest convenience. This document is provided as an accommodation and solely as a reference tool for planning purposes. It is not intended and does not create an offer or binding legal obligation on the part of IGF to provide financing on the terms outlined herein. Any such offer or commitment would be in writing and would be subject to and preceded by satisfactory completion of the requisite credit and business reviews . The receipt of all customary internal IBM Global Financing approvals and its effectiveness would be conditioned upon the prior execution of documentation acceptable to both parties.

Lease/Financing Proposal for CITY OF DOVER Kathryn Lamberth kathryn.lamberth@ibm.com 2019-12-05 Rates and offerings listed herein are subject to change, extension , or withdrawal without notice. Assumptions Summary Term in months 36 Total Purchase Price Financed $16,551 .86 Installation Date 2020-01-31 Total Periodic Payment $17,620.92 Rate Expiration Date 2020-01-04 Proposal Number X0009844701 Payments are Monthly in Arrears under a/an M7 - LPMA {Lease Purchase Customer Number 1802535 Master Agreement) contract Credit Request Number Not available New Financing Purchase Total Amount Fin Periodic Loan Qty Price Financed Type Rate/K Payment 9SW1 -IBM - SOFTWARE 1 $4,000 .00 $4,000.00 IS 28.7660 $115.06 9MT3-IBM - IBM PREPAID MAINTENANCE 1 $7,151 .86 $7,151 .86 IS 29.7888 $213.05 XSV2-OEM - SERVICES 1 $5,400.00 $5,400 .00 IS 29.8809 $161 .36 TOTAL SW/Svcs $16,551.86 $489.47 TOTAL $16,551.86 $489.47

Step Payment Summary Description Qty Step term From To Step rate Step payment 9SW1-IBM - SOFTWARE 1 36 1 36 28.7660 $115.06 9MT3-IBM - IBM PREPAID MAINTENANCE 1 36 1 36 29.7888 $213.05 XSV2-OEM - SERVICES 1 36 1 36 29.8809 $161 .36 Payment Summary 2020 2021 2022 2023 Jan $489.47 $489.47 $489.47 Feb $489.47 $489.47 $489.47 Mar $489.47 $489.47 $489.47 Apr $489.47 $489.47 $489.47 May $489.47 $489.47 $489.47 Jun $489.47 $489.47 $489.47 Jul $489.47 $489.47 $489.47 Aug $489.47 $489.47 $489.47 Sep $489.47 $489.47 $489.47 Oct $489.47 $489.47 $489.47 Nov $489.47 $489.47 $489.47 Dec $489.47 $489.47 $489.47 Total $5,384.17 $5,873.64 $5,873.64 $489.47 Average estimated Interest Rate is 4.10% Grow your business without breaking the budget. Financing can also help you accelerate the ROI of your investment by helping you smooth out high upfront costs into predictable payments that more effectively match costs to expected benefits. It can help you better manage cash flow and budgets because of the predictability that fixed financing payments provide you . This offering provides low monthly payments to meet budgetary requirements . - Improve your ROI payback rate - Pay for your product acquisition with fixed , predictable payments - Preserve your cash flow and other lines of credit Additional financing options such as annual payments, or step payments may be available upon request. DISCLAIMER : IBM Global Financing offerings are provided through IBM Credit LLC in the United States, IBM Global Financing Canada Corporation in Canada , and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates and availability are based on a client's credit rating , financing terms, offering type, equipment and product type and options, and may vary by country. Non-hardware items must be one-lime, non- recurring charges and are financed by means of loans. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice and may not be available in all countries. This document is provided as an accommodation and solely as a reference tool for planning purposes. It is not intended and does not create an offer or binding legal obligation on the part of IGF to provide financing on the terms outlined herein . Any such offer or commitment would be in writing and would be subject to and preceded by satisfactory completion of the requisite credit and business reviews . The receipt of all customary internal IBM Global Financing approvals and its effectiveness would be conditioned upon the prior execution of documentation acceptable to both parties.