Attachment

COUNCIL COMMITTEE OF THE WHOLE AGENDA FEBRUARY 9, 2016 - 6:00 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE PUBLIC COMMENTS ARE WELCOMED ON ANY ITEM AND WILL BE PERMITTED AT APPROPRIATE TIMES. WHEN POSSIBLE, PLEASE NOTIFY THE CITY CLERK (736-7008 OR E-MAIL AT CITYCLERK@DOVER.DE.US) SHOULD YOU WISH TO BE RECOGNIZED. PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE AGENDA ADDITIONS/DELETIONS 1. DRAFT COMMITTEE STRATEGIC PLAN TO SUBMIT FOR STAFF REVIEW 2. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM QUARTERLY UPDATE (OCTOBER, NOVEMBER, AND DECEMBER) (COMMITTEE ACTION NOT REQUIRED) 3. CITIZEN SUGGESTION - ECONOMIC EMPOWERMENT (CLAY HAMMOND) 4. ADJOURNMENT UTILITY COMMITTEE AGENDA ADDITIONS/DELETIONS 1. ADDITIONAL POWER SUPPLY ALTERNATIVES (STAFF RECOMMENDS 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) 2. QUARTERLY REVIEW OF UTILITY RELATED CAPITAL INVESTMENT PLAN (CIP) (ELECTRIC AND WATER/WASTEWATER)(OCTOBER, NOVEMBER, AND DECEMBER) (COMMITTEE ACTION NOT REQUIRED) 3. TEA/NAES REPORT (OCTOBER, NOVEMBER, AND DECEMBER) (STAFF RECOMMENDS ACCEPTANCE OF THE REPORT)

FEBRUARY 9, 2016 COUNCIL COMMITTEE OF THE WHOLE Page 2 UTILITY COMMITTEE (CONTINUED) 4. UPDATES (COMMITTEE ACTION NOT REQUIRED ON THE BELOW ITEMS) A. GREEN ENERGY FUNDING AND PROGRAMMING B. NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM (NPDES) MUNICIPAL SEPARATE STORM SEWER SYSTEMS (MS4) PERMIT C. GARRISON OAK TECHNICAL PARK PROJECT UPDATES C-1. CITY INFRASTRUCTURE C-2. CALPINE ENERGY CENTER C-3. DOVER SUN PARK 5. ADJOURNMENT LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE AGENDA ADDITIONS/DELETIONS 1. DISCUSSION - ELECTRIC CUTOFF PROCESS REVIEW 2. PROPOSED ORDINANCES A. #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 (REFERRED BACK TO COMMITTEE BY CITY COUNCIL DURING THEIR REGULAR MEETING OF JANUARY 25, 2016) B. #2016-07 - SECOND BUDGET AMENDMENT FOR FISCAL YEAR 2015/2016 3. REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS FOR THE FISCAL YEAR ENDING JUNE 30, 2015 (COMMITTEE ACTION NOT REQUIRED) 4. ADJOURNMENT /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\COMMITTEE-AGENDAS\2016\02-09-2016 CCW.WPD THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

From: David Anderson To: City Clerks Office Subject: Fwd: Question Date: Thursday, February 04, 2016 10:46:18 AM Attachments: CM Anderson $1.5 million Bond Amtz.pdf Please add this under strategic plan. The Honorable David L. Anderson 4th District Councilman, Dover, DE Phone: (302)339-1047 Council Office: (302)736-7006 ---------- Forwarded message ---------- From: Mitchell, Donna <DMitchell@dover.de.us> Date: Thu, Feb 4, 2016 at 10:15 AM Subject: RE: Question To: "Anderson, David" <davidlevianderson@gmail.com> I’m not sure if I forgot the attachment. Sorry if I did. Thank you, Donna From: Mitchell, Donna Sent: Monday, February 01, 2016 9:27 AM To: Anderson, David Subject: RE: Question Mr. Anderson, It will depend on how the bond is structured. The Financial Advisor solicits a bid and the bidder’s provide what each year’s CUSIP principal will be and the interest rate on each cusip. For example, one year that may have a $30,000 principal and 3.0% interest rate and another year they may bid a $40,000 principal payment and a 2.95% rate. The Financial Advisor will compile all the bids and find out which one is the least cost for the City.

I have attached a straight line amortization table to give you a ball park figure. Our bonds are normally done for a 20 year horizon, as the ratings agencies like to see you pay them off in a shorter time span, and a 3.85% interest rate. The last bond issue we did in 2014 had a 3.0% interest rate on the first 10 year cusips, and then went up as high as 4.25% in the latter years. The Fed is starting to increase interest rates now. Hope this helps. Donna S. Mitchell, CPA (not in public practice) City of Dover Controller/Treasurer 5 E. Reed Street, Suite 300 Dover, DE 19904 (302) 736-7018 dmitchell@dover.de.us “Action without study is fatal. Study without action is futile.” - Mary Beard From: David Anderson [mailto:davidlevianderson@gmail.com] Sent: Sunday, January 31, 2016 11:59 PM To: Mitchell, Donna Subject: Question

Donna, What would the interest rate and annual payment be on a 1.5 million dollar general obligation bond be? Sent from my T-Mobile 4G LTE Device

Loan Amortization Schedule Enter values Loan summary Loan amount $ 1,500,000.00 Scheduled payment $ 108,911.60 Annual interest rate 3.85 % Scheduled number of payments 20 Loan period in years 20 Actual number of payments 20 Number of payments per year 1 Total early payments $ - Start date of loan 6/30/2017 Total interest $ 678,232.01 Optional extra payments $ - Lender name: Request of CM Anderson Pmt. Scheduled Payment Date Beginning Balance Extra Payment Total Payment Principal Interest Ending Balance Cumulative Interest No. Payment 1 6/30/2018 $ 1,500,000.00 $ 108,911.60 $ - $ 108,911.60 $ 51,161.60 $ 57,750.00 $ 1,448,838.40 $ 57,750.00 2 6/30/2019 $ 1,448,838.40 $ 108,911.60 $ - $ 108,911.60 $ 53,131.32 $ 55,780.28 $ 1,395,707.08 $ 113,530.28 3 6/30/2020 $ 1,395,707.08 $ 108,911.60 $ - $ 108,911.60 $ 55,176.88 $ 53,734.72 $ 1,340,530.20 $ 167,265.00 4 6/30/2021 $ 1,340,530.20 $ 108,911.60 $ - $ 108,911.60 $ 57,301.19 $ 51,610.41 $ 1,283,229.01 $ 218,875.41 5 6/30/2022 $ 1,283,229.01 $ 108,911.60 $ - $ 108,911.60 $ 59,507.28 $ 49,404.32 $ 1,223,721.73 $ 268,279.73 6 6/30/2023 $ 1,223,721.73 $ 108,911.60 $ - $ 108,911.60 $ 61,798.31 $ 47,113.29 $ 1,161,923.41 $ 315,393.02 7 6/30/2024 $ 1,161,923.41 $ 108,911.60 $ - $ 108,911.60 $ 64,177.55 $ 44,734.05 $ 1,097,745.86 $ 360,127.07 8 6/30/2025 $ 1,097,745.86 $ 108,911.60 $ - $ 108,911.60 $ 66,648.38 $ 42,263.22 $ 1,031,097.48 $ 402,390.28 9 6/30/2026 $ 1,031,097.48 $ 108,911.60 $ - $ 108,911.60 $ 69,214.35 $ 39,697.25 $ 961,883.13 $ 442,087.54 10 6/30/2027 $ 961,883.13 $ 108,911.60 $ - $ 108,911.60 $ 71,879.10 $ 37,032.50 $ 890,004.03 $ 479,120.04 11 6/30/2028 $ 890,004.03 $ 108,911.60 $ - $ 108,911.60 $ 74,646.45 $ 34,265.16 $ 815,357.59 $ 513,385.19 12 6/30/2029 $ 815,357.59 $ 108,911.60 $ - $ 108,911.60 $ 77,520.33 $ 31,391.27 $ 737,837.25 $ 544,776.46 13 6/30/2030 $ 737,837.25 $ 108,911.60 $ - $ 108,911.60 $ 80,504.87 $ 28,406.73 $ 657,332.39 $ 573,183.19 14 6/30/2031 $ 657,332.39 $ 108,911.60 $ - $ 108,911.60 $ 83,604.30 $ 25,307.30 $ 573,728.08 $ 598,490.49 15 6/30/2032 $ 573,728.08 $ 108,911.60 $ - $ 108,911.60 $ 86,823.07 $ 22,088.53 $ 486,905.01 $ 620,579.02 16 6/30/2033 $ 486,905.01 $ 108,911.60 $ - $ 108,911.60 $ 90,165.76 $ 18,745.84 $ 396,739.25 $ 639,324.86 17 6/30/2034 $ 396,739.25 $ 108,911.60 $ - $ 108,911.60 $ 93,637.14 $ 15,274.46 $ 303,102.12 $ 654,599.33 18 6/30/2035 $ 303,102.12 $ 108,911.60 $ - $ 108,911.60 $ 97,242.17 $ 11,669.43 $ 205,859.95 $ 666,268.76 19 6/30/2036 $ 205,859.95 $ 108,911.60 $ - $ 108,911.60 $ 100,985.99 $ 7,925.61 $ 104,873.95 $ 674,194.37 20 6/30/2037 $ 104,873.95 $ 108,911.60 $ - $ 104,873.95 $ 100,836.31 $ 4,037.65 $ - $ 678,232.01

CDBG Quarterly Report 2015 October, November, December CDBG FY15 Projects Homeownership Assistance Program CDBG funds will be used to provide homeownership assistance to first-time homebuyers who purchase affordable housing in the Downtown Development District (DDD) Target Area. One (1) family is scheduled to go to settlement in January 2016 to purchase a property in the DDD Target Area. Dover Interfaith Mission for Housing CDBG funds will be used for operations cost for the shelter. This project is currently underway with 41% of program funds spent year to date. Connections Community Support Program CDBG funds will be used to provide rapid re-housing/rental assistance services for homeless households within the City. Rental assistance was provided for one (1) low income person. Milford Housing Homeowner Rehabilitation Program CDBG funds will be used to rehabilitate existing owner occupied housing in the City that is in violation of the City’s Housing Code and complete emergency home repairs to eliminate housing conditions that threaten the health and safety of low income homeowners. Emergency home repairs were completed for five (5) low income households during the quarter. Habitat for Humanity CDBG funds will be used to rehabilitate an existing home to provide affordable housing to a family in the Downtown Development District Target Area. Habitat purchased 111 S. Queen on November 2, 2015, renovated the property, and sold the property on December 18th to a first time homebuyer. Peoples Place Whatcoat Homeless Shelter CDBG funds will be utilized for minor renovations to a facility that shelters the homeless. This project is completed. Mayors Challenge to End Veterans Homelessness The Mayor’s Task Force for Ending Veterans Homelessness has met its goal by housing 50 Veterans by December 28, 2015. There will be a 300 day celebration held on January 20th at Grotto’s Pizza in Dover to celebrate this accomplishment.

Parks, Recreation, and Community Enhancement 2/8/2016 Status of FY-15 Program Funds Spent - Fiscal Year 7/1/15- 6/30/16 2015 Grant Projects Project Details Total Grant Funds Expended Unencumbered Balance Funds will be utilized for settlement assistance for Homeownership Assistance Program $60,000 $40,000 $20,000 properties purchased in the DDD Target Area Funds will be utilized for rapid re-housing/rental Connections $7,391 $1,700 $5,691 assistance for low income persons Funds will be used for Dover Interfaith Mission for Housing $27,000 $11,258 $15,742 operation cost Funds will be utilized for Milford Housing Development Corp emergency home repairs. $35,262 $12,989 $22,273 Project underway Funds will be utilized for Milford Housing Development Corp rehabbing owner occupied $52,892 $0 $52,892 homes. Project underway Funds will be utilized to rehab a single family Habitat for Humanity $40,000 $24,819 $15,181 home for a low income family Funds will be used for Peoples Place replacement windows for $6,726 $6,726 $0 a homeless shelter. Total $229,271 $97,492 $131,779

From: David Anderson To: City Clerks Office Subject: Fwd: Per Our Conversation Date: Thursday, February 04, 2016 10:36:57 AM Attachments: Dover City Council 8 31.doc for packet The Honorable David L. Anderson 4th District Councilman, Dover, DE Phone: (302)339-1047 Council Office: (302)736-7006 ---------- Forwarded message ---------- From: clay Hammond <chammond505@gmail.com> Date: Mon, Aug 31, 2015 at 4:22 PM Subject: Per Our Conversation To: David Anderson <davidlevianderson@gmail.com> Cc: Roy Sudler <roysudlerjr@comcast.net> David Attached is the email I will be sending to members of the city council this week requesting that a commission be created to address issues that are adversely impacting the city's at-risk and low income Black communities. I'd like your and Roy's leadership on this issue. Clay Hammond

August 31, 2015 City Councilmen: A major responsibility of municipal government is to provide a good quality of life for its residents. With such being the case, city government has fallen woefully short as relates to Black residents of low-income and at risk communities! I make this assertion based on the following: • The city’s economic development plans/strategy has never included workforce development in spite of the high unemployment rate in the Black community • The city’s CDBG entitlement is only used for housing rehab in spite of the fact that a large percentage of Blacks in distressed areas are renters • The quasi-governmental economic development organization that the city supports, Downtown Dover Partnership (DDP), has never developed strategies or resources to address the economic development needs of low- income and/or at risk residents of its target area that is comprised of a significant number of Blacks • The primary response to increased gun violence in the Black community is to have an increased/enhanced police presence when increased economic opportunities (i.e. jobs, self employment training, etc.) would be a more effective deterrent. • The city does not pursue grants to address the needs of at-risk and low income residents of the city There is a current phrase that is prevalent in our community across the nation is that “Black lives matter”. For a significant portion of the Black community that is low-income and /or at risk in Dover, Black lives don’t matter! Given the tremendous economic and social disparities that exist in the city’s low-income and at risk Black communities, government’s leadership has allowed them not only to continue to exist, but increase in many areas! As data (i.e. poverty rate, unemployment rate, etc.) that allows the city to receive CDBG funding is impacted by realities of the low-income Black residents. As a significant portion of the city’s Black community is in crisis, I would like to request that city council create a formal “commission” that would be charged with the development of a strategic plan and identifying resources to address both the causes and effects of major issues in distressed Black communities (Kirkwood/New/Queen Streets, Simon Circle, Capital Green). The commission could be composed of entities and individuals that possess a wealth of resources, insight and expertise in addressing the

myriad of issues that adversely impact the above-referenced communities. Some members could be: • Delaware State University • Wesley College • Faith Community • Black Fraternal Organizations (fraternities, sororities, Masonic) • City Government (City Council, Asst. City Manager, CDBG staff, etc.) • Nonprofits (MLK Community Center, Delmarva Black Chamber, CenDel Foundation, etc.) • Community residents (youth, adults) • Dover Housing Authority • Dover Police Department • Financial Institutions (credit unions, banks) Let’s be proactive in addressing issues that have led to a sense of hopeless that many Black residents feel too often contribute to negative behavior. As the same issues that led to civil disturbance in Baltimore exist here, let’s not ignore them. How the commission will differ from NCALL’s “Restoring Central Dover” initiative is that it will focus exclusively on the Black community and address a broader range of issues (i.e. mental health, asset creation, workforce development, etc.) As the Black community comprises 40% Black (white population is 43% of the city’s population, it is my hope that city government will invest in healing and empowering Black residents of low-income and at risk communities. Respectfully, Clayton e. Hammond II

Devine, Denise From: David Anderson <davidlevianderson@gmail.com> Sent: Thursday, February 04, 2016 10:39 AM To: City Clerks Office Subject: Fwd: Economic Inclusion Advisory Body For packet The Honorable David L. Anderson 4th District Councilman, Dover, DE Phone: (302)339-1047 Council Office: (302)736-7006 ---------- Forwarded message ---------- From: clay Hammond <chammond505@gmail.com> Date: Wed, Nov 18, 2015 at 4:09 PM Subject: Economic Inclusion Advisory Body To: "Neaton, William G." <wneaton@dover.de.us> Bill: The following persons are my suggestions of individuals to comprise the Economic Inclusion Advisory body. Shep Sheppard House of Style chiffonrogers@yahoo.com Dr. Tracy Underwood Eye to Eye Optometry seeingeye2eye@gmail.com Mike White Janiaid’s The Salon for Men janaidkareem@hotmail.com Hassan Zahar Zuha Men’s Fashions AHA18214@yahoo.com Theo Morgan Computers Fixed Today computersfixedtoday@comcast.net Kim Aigle Suds Bar sudsbar@gmail.com, Clay Hammond Delmarva Black Chamber DeMdBlackChamber@comcast.net Dr. Michael Casson DSU mcasson@desu.edu Tifanee Lee-Scott Tifanee & Company tiffandcompany@yahoo.com Arita Warren Tresses Hair Studio shellythestlist@gmail.com Edmond Sinmaron Simaron’s simaron415@aol.com Anne Smith MLK Center (workforce Development) floralconection@aol.com Pablo Velazquez Branch Manager/Citizens Bank Pablo.velazquez@citizensbank.com Clay 1

Devine, Denise From: David Anderson <davidlevianderson@gmail.com> Sent: Thursday, February 04, 2016 10:43 AM To: City Clerks Office Subject: Fwd: Request - Status Updates And finally, the reason for moving this to the agenda, 4 months without the feeling that the issues are addressed. The follow up letter. The Honorable David L. Anderson 4th District Councilman, Dover, DE Phone: (302)339-1047 Council Office: (302)736-7006 ---------- Forwarded message ---------- From: clay Hammond <chammond505@gmail.com> Date: Mon, Dec 21, 2015 at 10:22 AM Subject: Request - Status Updates To: "Perez, Ed" <eperez@dover.de.us>, "Paul S. Davis" <paulsdavis@comcast.net>, Roy Sudler <roysudlerjr@comcast.net>, David Anderson <davidlevianderson@gmail.com> FYI ---------- Forwarded message ---------- From: "clay Hammond" <chammond505@gmail.com> Date: Dec 21, 2015 10:19 AM Subject: Request - Status Updates To: "Neaton, William G." <wneaton@dover.de.us> Cc: Bill Can you give me an update on the following: 1. Delmarva Black Chamber's status with the Kent County Entrepreneur Consortium 2. Status of funding request to City of Dover/DDP for the Ice House Program 3. New date for meeting with minority entrepreneurs in downtown Dover 4. Status for the creation of the Economic Inclusion Advisory body Thanks Clay Hammond 1

From: David Anderson To: City Clerks Office Subject: Fwd: Important Research - Unbanked Individuals Date: Thursday, February 04, 2016 10:38:01 AM Attachments: FDIC Un Banked Study Exec Summary.pdf For packet The Honorable David L. Anderson 4th District Councilman, Dover, DE Phone: (302)339-1047 Council Office: (302)736-7006 ---------- Forwarded message ---------- From: clay Hammond <chammond505@gmail.com> Date: Fri, Jan 29, 2016 at 3:24 PM Subject: Important Research - Unbanked Individuals To: elmer davis <elmerdavis44@gmail.com>, Sylvester Beaman <sbeaman1@aol.com>, leswanams@verizon.net, Michael Rogers <centralpastor@msn.com>, Rita Paige <ritapaige7@comcast.net>, David Anderson <davidlevianderson@gmail.com>, Roy Sudler <roysudlerjr@comcast.net> ---------- Forwarded message ---------- From: <demdblackchamber@comcast.net> Date: Jan 29, 2016 3:21 PM Subject: Important Research - Unbanked Individuals To: <chammond505@gmail.com> Cc: All: The attached summary relates to research the FDIC conducted about the unbanked, which reinforces our need for collective economic empowerment in our community!. Clay Hammond Chairman

FDIC National Survey of Unbanked and Underbanked Households Executive Summary Federal Deposit Insurance Corporation December 2009

 Members of the FDIC Unbanked/Underbanked Survey Study Group Team Members: Office of the Vice Chairman: Barbara Ryan and Yazmin Osaki Division of Insurance and Research: Susan Burhouse, David Chapman, Timothy Critchfield, Ryan Goodstein and Katherine Samolyk Division of Supervision and Consumer Protection: Angelisa Harris and Luke Reynolds. Legal: Leneta Gregorie Contributors: Michael Bachman, Peggi Gill, Michael Glenwick, Jocelyn Grazal, Peter Johnston, David Spanburg, Jacques Vilar, and Kathy Zeidler FDIC National Survey of Unbanked and Underbanked Households ■ December 2009 2

 Executive Summary first time such data on unbanked and underbanked house- holds are available at the national, state, and large MSA levels. It is hoped that these survey results will help better In January 2009, the Federal Deposit Insurance Corpora- inform the industry and policymakers about economic tion (FDIC) sponsored a special supplement to the U.S. inclusion issues, and promote the goal of ensuring that all Census Bureau’s Current Population Survey (CPS) to Americans have access to basic, safe, and affordable bank collect national, state, and metropolitan statistical area services. (MSA) data on the number of U.S. households that are unbanked and underbanked, their demographic character- Key Overall Findings istics, and their reasons for being unbanked and under- • An estimated 7.7 percent of U.S. households, banked.1 The Census Bureau surveyed approximately approximately 9 million, are unbanked.3 At least 17 54,000 households, and about 47,000 (86 percent) partici- million adults reside in these unbanked households pated in the FDIC’s supplement survey. (see Figure 1.1).4 The FDIC undertook this effort to address a gap in reliable • The proportion of U.S. households that are data on the number of unbanked and underbanked house- unbanked varies considerably among different racial holds in the United States. Access to an account at a and ethnic groups, with certain racial and ethnic federally insured institution provides households with the minorities more likely to be unbanked than the opportunity to conduct basic financial transactions, save population as a whole. Minorities more likely to be for emergency and long-term security needs, and access unbanked include blacks (an estimated 21.7 percent credit on affordable terms. Many people, particularly low- of black households are unbanked), Hispanics (19.3 to-moderate income households, do not have access to percent), and American Indian/Alaskans (15.6 mainstream financial products such as bank accounts and percent). Racial groups less likely to be unbanked are low-cost loans. Other households have access to a bank Asians (3.5 percent) and whites (3.3 percent).5 account, but nevertheless rely on more costly financial service providers for a variety of reasons. In addition to • In addition to the unbanked households, an esti- paying more for basic transaction and credit financial mated 17.9 percent of U.S. households, roughly 21 services, these households may be more vulnerable to loss million, are underbanked.6 The number of adults that or theft and often struggle to build credit histories and achieve financial security. The FDIC also conducted this survey to comply with a statutory mandate that requires it to conduct ongoing surveys of banks on their efforts to serve the unbanked.2 The supplement survey complements the FDIC Survey on 3 For the purposes of this survey, households were identified as unbanked Banks’ Efforts to Serve the Unbanked and Underbanked, if they answered “no” to the question, “Do you or does anyone in your household currently have a checking or savings account?” published in February 2009, and provides insights into the 4 In addition, unbanked adults may also reside in other households. Adults size of the unbanked and underbanked markets. It also are defined as persons aged 16 and older. This is a lower-bound estimate presents a wealth of previously unavailable data regarding of the number of unbanked adults in the United States because it is based households’ banking status and related issues. Teamed on the assumption that all adults residing in a “banked” household are with the rich demographic and geographic data available banked. A banked household may contain one or more unbanked adults; these unbanked adults residing in banked households are not included in through the CPS, the supplement survey represents the the 17 million adults figure cited above. 5 The demographic characteristics of a household are taken to be those 1 The data for this report were collected through an FDIC-sponsored of the owner or renter of the home (i.e., “householder”), unless the demo- Unbanked/Underbanked Supplement to the Current Population Survey graphic characteristic is one defined at the household level, such as (CPS). Additional information on the CPS is available at http://www. income or household type. For convenience, some abbreviated language census.gov/cps/. For additional methodological details and definitions, will be used to refer to the demographic characteristics of households. For refer to the FDIC technical notes located in Appendix D of the full report. example, the term “black household” refers to a household for which the 2 Section 7 of the Federal Deposit Insurance Reform Conforming Amend- householder has been identified as black. Refer to the FDIC technical ments Act of 2005 (Reform Act) requires that the FDIC conduct biennial notes for the race/ethnicity and other definitions used in this report. surveys of insured depository institutions’ efforts to bring individuals and 6 Underbanked households are defined as those that have a checking or families who have rarely, if ever, held a checking account, a savings savings account but rely on alternative financial services. Specifically, account, or other type of transaction or check-cashing account at an underbanked households have used non-bank money orders, non-bank insured depository institution into the conventional finance system. The check-cashing services, payday loans, rent-to-own agreements, or pawn Reform Act also asks the FDIC for a “fair estimate” of the size and worth shops at least once or twice a year or refund anticipation loans at least of the “unbanked” market in the United States. once in the past five years. FDIC National Survey of Unbanked and Underbanked Households ■ December 2009 3

 reside in these underbanked households is about 43 Region. In addition, the proportion of unbanked million.7 households varies considerably among certain racial and ethnic minorities across states and MSAs. • Certain racial and ethnic minorities are more likely to be underbanked than the population as a whole. Additional Key Unbanked Findings Minorities more likely to be underbanked include • Family households for which the householder is an blacks (an estimated 31.6 percent), American Indian/ unmarried female or unmarried male are consider- Alaskans (28.9 percent), and Hispanics (24.0 ably more likely than married couple households to percent). Asians and whites are less likely to be be unbanked.8 Almost 20 percent of unmarried underbanked (7.2 percent and 14.9 percent, respec- female family households and 14.9 percent of unmar- tively). ried male family households are unbanked, compared Figure 1.1 Banking Status of U.S. Households with about 4 percent of married couple family households. Underbanked 17.9% • A substantial percentage of lower-income house- holds are unbanked. Nearly 20 percent of lower- income U.S. households—almost 7 million Unbanked households earning below $30,000 per year—do not 7.7% currently have a bank account. Households with earn- ings below $30,000 account for at least 71 percent of Banked, but Not Underbanked unbanked households. Banked, but 70.3% Underbanked Status Unknown* • The proportion of unbanked households declines 4.1% with education and age. Households more likely to be Notes: Percentages are based on 118.6 million U.S. households. Percentages do not always sum to 100 because of the rounding of household weights to represent the population totals. unbanked than all U.S. households have less than a * These households are banked, but there is not enough information to determine if they are underbanked. college education or a householder under age 45. • Not having enough money to feel they need an • Taken together, at least 25.6 percent of U.S. house- account is the most common reason why unbanked holds, close to 30 million, are either unbanked or households are not participating in the mainstream underbanked. Approximately 60 million adults reside financial system. in these households. • The 9 million unbanked households are approxi- • Overall, almost 54 percent of black households, mately split between households that have never 44.5 percent of American Indian/Alaskan house- had a bank account (46.9 percent) and households holds, and 43.3 percent of Hispanic households are that were previously banked (49.0 percent). either unbanked or underbanked. • A considerable proportion (an estimated 41.1 • While 17.9 percent of U.S. households are known percent) of unbanked households believes that to be underbanked, another 4.1 percent of U.S. opening a bank account in the future is “not likely households, or roughly 5 million, are banked and at all.” However, among all unbanked households, may also be underbanked, but their use of AFS could the previously banked are more likely to consider not be determined because of missing data. The opening a bank account in the future. About 16 number of adults that reside in these households is percent of previously banked households believe that estimated to be 11 million. they are “very likely” to open a bank account, compared with 4.8 percent of those that have never • The proportion of unbanked and underbanked been banked. households varies across different regions of the country, with the highest incidence in the Southern 8 A family household is a household that includes two or more people related by birth, marriage, or adoption and residing together, along with 7 This is an upper-bound estimate of the total number of underbanked any unrelated people who may be residing there. For the definition of adults in the United States because it is based on the assumption that all ‘householder’ see footnote 5. Detailed definitions regarding household adults residing in an underbanked household are underbanked. However, types can be found in the CPS Glossary available at http://www.census. an underbanked household may contain one or more adults that are not gov/apsd/techdoc/cps/mar97/glossary.html. underbanked. FDIC National Survey of Unbanked and Underbanked Households ■ December 2009 4

 • About 66 percent of unbanked households use the services do so primarily because it is easier to qual- following alternative financial services (AFS): non- ify for a loan from the AFS provider or because it is bank money orders and non-bank check-cashing, more convenient. pawn shops, payday loans, rent-to-own agreements (RTOs), and refund anticipation loans (RALs). • Approximately 16 percent of underbanked house- About one-quarter of unbanked households do not use holds have used a general spending prepaid card and any AFS, suggesting a strong reliance on cash an estimated 4.2 percent receive their income transactions. through a payroll card. • Approximately 12 percent of unbanked households The full report that follows focuses primarily on the key have used a general spending prepaid card, and an issues the FDIC intended to address in conducting the estimated 3.1 percent receive their income through survey. It is organized as follows: Section 2 provides back- a payroll card. ground and objectives; Section 3 provides a brief overview of the survey findings related to the national percentage of Additional Key Underbanked Findings unbanked and underbanked households; Section 4 summa- • Family households for which the householder is an rizes findings related to unbanked households; Section 5 unmarried female or unmarried male are consider- summarizes findings related to underbanked households; ably more likely than married couple family house- Section 6 compares select demographic characteristics of holds to be underbanked. About 28 percent of unbanked and underbanked households; and Section 7 unmarried female family households and 27 percent of provides concluding remarks. Detailed national, state, and unmarried male family households are underbanked, MSA-level tables appear in Appendices A, B, and C. compared with 15.4 percent of households with a Technical notes for the FDIC’s supplement survey appear married couple present. as Appendix D, and the supplement survey instrument is included as Appendix E. • The underbanked rate declines with age of the householder but is more evenly distributed across most educational and income groups. For example, middle-income households (those with annual income between $30,000 and $50,000) are about as likely as lower-income households (those with annual income below $30,000) to be underbanked. The proportion of underbanked households is considerably lower among the highest education level of the householder (at least college degree) and the highest income group (at least $75,000). • The AFS products used most frequently by under- banked households are non-bank money orders (an estimated 81.1 percent of underbanked use money orders) and check-cashing (30.0 percent) transac- tion services. Underbanked households also use on payday lenders (16.2 percent), pawn shops (15.8 percent), RTO services (13.0 percent), and RALs (13.2 percent) for credit services from non-banks. • The survey data indicate that the majority of under- banked households that go to nonbanks for money orders and check cashing do so primarily for conve- nience. Speed and cost were also reasons under- banked households use these non-bank transaction services. • Many underbanked households that use payday loans or pawn shops rather than banks for credit FDIC National Survey of Unbanked and Underbanked Households ■ December 2009 5

Devine, Denise From: David Anderson <davidlevianderson@gmail.com> Sent: Thursday, February 04, 2016 10:45 AM To: City Clerks Office Subject: Fwd: EDA Economic Development Conference Attachments: image002.gif also with Mr. Hammond's The Honorable David L. Anderson 4th District Councilman, Dover, DE Phone: (302)339-1047 Council Office: (302)736-7006 ---------- Forwarded message ---------- From: clay Hammond <chammond505@gmail.com> Date: Wed, Feb 3, 2016 at 10:29 PM Subject: EDA Economic Development Conference To: Mike Casson <mcasson@desu.edu>, "Paul S. Davis" <paulsdavis@comcast.net>, La Mar Gunn <lamargunn@me.com>, David Anderson <davidlevianderson@gmail.com>, Phil Bradford-VFNA <pbradford@vfna.org>, elmer davis <elmerdavis44@gmail.com>, Jonathan Weaver <jonathanwea@gmail.com>, Ken Anderson <Kenneth.r.anderson@state.de.us> FYI ---------- Forwarded message ---------- From: "Tamika Graham" <tgraham@ncall.org> Date: Feb 3, 2016 4:27 PM Subject: FW: Economic Development Conference To: "Townshend, Ann Marie" <ATownshend@dover.de.us>, "Clay Hammond" <chammond505@gmail.com>, "David Clendaniel" <dclendaniel@doverfcu.com>, "Perez, Ed" <eperez@dover.de.us>, "Herb Konowitz" <herb.konowitz403@gmail.com>, "Hudson, Kirby A" <khudson@dover.de.us>, "James Waddington" <james.waddington@co.kent.de.us>, "Joe Zilcosky" <joe.zilcosky@state.de.us>, "Judy Diogo" <jdiogo@cdcc.net>, "Vandell Hampton Jr." <vhampton@firststateloan.org>, "Neaton, William G." <wneaton@dover.de.us>, "Jackson, Beverly" <bjackson@dover.de.us> Cc: FYI - Please see conference link below. 1

Best Regards, Tamika Tamika K. Graham Neighborhood Revitalization Coordinator NCALL Research, Inc. 363 Saulsbury Road Dover, DE 19904 302-678-9400 ext 123 www.NCALL.org From: Bynum, Maria L [mailto:Maria.L.Bynum@hud.gov] Sent: Monday, February 1, 2016 4:45 PM To: tgraham@ncall.org Subject: Economic Development Conference Tamika, Hope all is well. A notice about an Economic Development Conference in Washington, DC came across my desk. I wanted to pass it along in case someone on the Economic Development Committee might be interested in attending. Here's the link: https://useda2016.org/ Feel free to share with anyone you think might be interested. Warm regards, 2

Maria Bynum Field Office Director, Wilmington U.S. Department of Housing and Urban Development 920 N. King Street Wilmington, DE 19801 (302) 573-6300 3

Memorandum Office of the City Manager PO Box 475 Dover, DE 19903 Phone: (302) 736-7005 FAX: (302) 736-7002 E-mail: skoenig@dover.de.us To: Utility Committee From: Scott D. Koenig, P.E., City Manager Harry Maloney, Electric Director Donna Mitchell, Controller/Treasurer Date: February 1, 2016 Subject: Additional Power Supply Alternatives The purpose of this memorandum is to describe the Executive Risk Management Committee’s (ERMC) request for approvals to explore two exceptions to the Governing Energy Commodity Risk Policy. These exceptions if approved would authorize the Energy Manager to pursue negotiations for two separate commodity transactions intended to meet the City’s electric load requirements and reduce the City’s risk, but which fall outside of the Governing Energy Commodity Risk Policy limits as stated below. Once negotiations are successful, The Executive Management Committee would return to the City Utility Committee and City Council to seek approval of these contracts. Descriptions of Possible Products  Load Following Product for Fiscal year 2017 and 2018: A Third Party purchases 100% of existing Dover hedges at the same price Dover paid for them originally. Third Party sells Dover a “load following product” for every MW of actual load Dover consumes at a fixed price. The risk that is managed by this product is the volumetric and price risk normally borne by the City and associated with actual load variations due to weather or other events affecting demand. Dover remains exposed to the congestion or basis risk (cost or savings) between the DPL load point where Dover’s actual load is priced and the purchase location of the PJM West Hub delivery point.  Purchase of up to 50 MW of fixed-price energy for up to 10 years: Up to 50 MW purchase of PJM West Hub energy 7x24 starting in 2018 for five and ten year terms (Physical Power). The risk managed by this product is lowering price risk future years by purchasing at today’s forward prices. Current target for this product is 25 MW however, we are requesting authorization to discuss up to a 50 MW purchase.

Dover Governance Risk Policy Limits Exceedance:  Hedge Programmatic Level: 100% of actual load hedge is outside of the maximum hedge limit of 80% of the expected loads.  Power (MW) Maturity Limit: 10 year transaction is outside of the 5 year term and 5 year maturity limit. The ERMC is seeking approval to pursuing negotiations for these products as viable tools to support the primary hedge program goals of providing price certainty in order to meet financial and budget objectives and provide electric customers with rates that are competitive with surrounding areas. Prior to executing any transaction under these exceedances, the ERMC will review the products’ effectiveness for reducing the City of Dover’s overall Portfolio Risk at a reasonable cost and in accordance with the remaining tenets of the Governing Energy Commodity Risk Policy:  Load Following will not be in exceedance of the Cost of Service Limit forecasted for 2017 and 2018 Power Year.  Physical and financial commodity transactions will be executed with counterparties approved by the ERMC with credit available to support the transactions.  The transactions do not carry additional Commodity Futures Trading Commission (CFTC) reporting requirements.  Transactions support the requirement of native load and Load Following will not exceed 100% of actual load.  Maturity limit for each permissible instrument will not exceed 10 years term 15 Year Maturity.  Director of the Utility shall, in addition to notifying the ERMC if negotiations result in a transaction, also notify the Chair of The Committee as soon as practicable.  Director of utility shall provide periodic reports to the Chair on the status of negotiations and any subsequent transactions. As stated before the ERMC will request approval of these possible contracts from the Utility Committee and City Council.

City of Dover Capital Investment Plan Project Tracking Report Quarterly Report as of Dec 31, 2015 Points to Remember - * Original Project Budget = Original Total Project Budget initially included in approved annual budget. * Latest Project Budget = Revised Total Project Budget included in most recent approved annual budget or one of the following: bond resolution, revolving fund loan agreement, Council approved budget amendment, or City Manager approved amendment as per the Budget Amendment Procedure. * Current Fiscal Year - Revised Fiscal Year Budget = Current Year approved project budgets plus carry forward balances of unspent budgets in the prior fiscal year. Project Carry Forward balances will be submitted to City Council for amendment in January 2010. Can also be amended with City Manager approval per the Budget Amendment Procedure. * Water Quality, Inflow/Infiltration, Distribution Upgrades and New Development projects are budgeted as a blanket project and once individual projects are identified and estimated they are created using an allocation of the overall budgeted amount. * Status and Comments provided by City Manager. Community Water & Total Current Year Budget Funding Sources General Transportation Wastewater Electric CIP Budget Balance $ 2,577,500 $ 512,900 $ 7,515,900 $ 3,900,700 $ 14,507,000 General Billings for Reimbursement of Expense - - 20,200 1,900,000 1,920,200 Debt Financing - - - - - Income from Sale of Assets 51,900 - - - 51,900 State Community Transportation Funds - 500,000 - - 500,000 Transfer from WW Impact Fee Reserve - - 165,000 - 165,000 Transfer from General Fund 2,625,400 - - - 2,625,400 Transfer from Operating Funds - - 3,300,000 3,500,000 6,800,000 Transfer from Parkland Reserve - - - - - Interest Income 5,000 - 25,000 26,700 56,700 Total Funding Sources (Unaudited) $ 5,259,800 $ 1,012,900 $ 11,026,100 $ 9,327,400 $ 26,626,200

City of Dover General Fund - Major CIP Projects Quarterly Report as of Dec 31, 2015 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Original Revised Fiscal % Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2013 2 ST1304 M B/L Garrison Farm Improvements $ 2,000,000 $ 4,641,000 $ 3,696,029 $ 944,971 79.6% $ 1,496,500 $ 1,537,500 $ 592,448 $ 945,052 38.5% In Process Project approximately 98% complete 3 Totals - FY 2013 $ 2,000,000 $ 4,641,000 $ 3,696,029 $ 944,971 79.6% $ 1,496,500 $ 1,537,500 $ 592,448 $ 945,052 38.5% 4 5 FY 2015 6 FR1501 SCBA Equipment/Radios $ 588,800 $ 588,800 $ 588,632 $ 168 100.0% $ 300,200 $ 300,200 $ 299,981 $ 219 99.9% Complete 7 PR1501 Park & Playground Impr Equipment 66,000 66,000 - 66,000 0.0% 66,000 66,000 - 66,000 0.0% 8 ST1502 Streets, Alleys and Concrete Prog. 900,000 505,100 430,645 74,455 85.3% 441,500 322,200 247,657 74,543 76.9% Complete Final invoices recently coded 9 ST1503 Misc Emergency Street/Storm Repairs - 71,800 71,881 (81) 100.1% 35,000 31,800 31,791 9 100.0% Complete 10 ST1504 Old PW2 Site Improvements 535,000 561,500 187,347 374,153 33.4% 330,000 455,400 81,152 374,248 17.8% In Process Design work ongoing 75% level 11 ST1506 Stormwater Ditch Maintenance 15,000 15,000 13,284 1,716 88.6% 15,000 15,000 13,284 1,716 88.6% Complete Project continuing, approximately 95% 12 ST1508 G Stormwater Utility Planning 90,000 90,000 55,250 34,750 61.4% 82,400 82,400 47,600 34,800 57.8% In Process complete with study. 13 Totals - FY 2015 $ 2,194,800 $ 1,898,200 $ 1,347,038 $ 551,162 71.0% $ 1,270,100 $ 1,273,000 $ 721,465 $ 551,535 56.7% 14 15 FY 2016 16 --- Vehicles & Equipment $ 1,095,200 $ 1,113,800 $ 261,581 $ 852,220 23.5% $ 1,095,200 $ 1,113,800 $ 261,581 $ 852,220 23.5% In Process 17 FR1500 Annual Contribution to Robbins Hose 145,600 145,600 145,614 (14) 100.0% 145,600 145,600 145,614 (14) 100.0% Complete 18 GO1501 GOTP Farmhouse Demo/Project 35,000 35,000 27,605 7,395 0.0% 35,000 35,000 27,605 7,395 78.9% In Process 19 PD1601 Camera Monitoring Station 19,900 19,900 4,995 14,905 25.1% 19,900 19,900 4,995 14,905 25.1% In Process 20 ST1601 FY16 Street and Alley Program 1,000,000 925,000 - 925,000 0.0% 1,000,000 925,000 - 925,000 0.0% In Process Work underway, awaiting invoices 21 ST1603 Valve Replacement - Silver Lake Dam 60,000 60,000 - 60,000 0.0% 60,000 60,000 - 60,000 0.0% In Process Bids received, evaluating Received zero bids on last request, 22 ST1604 Salt Storage Barn (originally proj ST1303) 50,000 75,000 2,435 72,565 3.2% 75,000 75,000 2,435 72,565 3.2% In Process staff to rebid Project ongoing, work provided as 23 ST1605 Misc Emergency Street/Storm Repairs - 75,000 17,339 57,661 23.1% - 75,000 17,339 57,661 23.1% In Process emergencies arise. 24 Totals - FY 2016 $ 2,405,700 $ 2,449,300 $ 459,567 $ 1,989,733 18.8% $ 2,430,700 $ 2,449,300 $ 459,567 $ 1,989,733 18.8% 25 26 Grand Totals $ 6,600,500 $ 8,988,500 $ 5,502,634 $ 3,485,866 61.2% $ 5,197,300 $ 5,259,800 $ 1,773,480 $ 3,486,320 33.7% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. G = Grant funded project B/L = To be financed through bonds or commercial loan.

City of Dover Community Transportation - Major CIP Projects Quarterly Report as of Dec 31, 2015 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Original Revised Fiscal % Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2014 2 CT1405 Lakeview Drainage Study $ 24,400 $ 24,400 $ 19,657 $ 4,743 80.6% $ 6,300 $ 6,300 $ 1,470 $ 4,830 23.3% In Process Design work approximately 98% complete 3 Totals - FY 2014 $ 24,400 $ 24,400 $ 19,657 $ 4,743 80.6% $ 6,300 $ 6,300 $ 1,470 $ 4,830 23.3% 4 5 FY 2015 6 CT1562 Village of Cannon Mill Repavement $ 315,000 $ 386,900 $ 215,630 $ 171,270 55.7% $ 361,000 $ 361,000 $ 189,633 $ 171,367 52.5% Complete Work complete, awaiting final invoices 7 CT1599 Signage Agreement 2,700 2,700 2,520 180 93.3% 1,600 1,600 1,350 250 84.4% Complete 8 Totals - FY 2015 $ 317,700 $ 389,600 $ 218,150 $ 171,450 56.0% $ 362,600 $ 362,600 $ 190,983 $ 171,617 52.7% 9 10 FY 2016 11 CT1616 The Meadows $ 22,200 $ 22,200 $ - $ 22,200 0.0% $ 22,200 $ 22,200 $ - $ 22,200 0.0% In Process Concrete work has started, awaiting invoices 12 CT1627 FY16 Paving Projects 247,400 247,400 - 247,400 0.0% 247,400 247,400 - 247,400 0.0% In Process Contractor has started work, awaiting invoices 13 CT1632 FY16 Signs Projects 14,600 14,600 - 14,600 0.0% 14,600 14,600 - 14,600 0.0% In Process Materials ordered, awaiting delivery 14 CTxxxx Unapplied CT Projects (placeholder) 644,000 359,800 - 359,800 0.0% 144,000 359,800 - 359,800 0.0% 15 Totals - FY 2016 $ 928,200 $ 644,000 $ - $ 644,000 0.0% $ 428,200 $ 644,000 $ - $ 644,000 0.0% 16 17 Grand Totals $ 1,270,300 $ 1,058,000 $ 237,807 $ 820,193 22.5% $ 797,100 $ 1,012,900 $ 192,453 $ 820,447 19.0% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. C = Project funded by combination of CT Funds and General Fund

City of Dover Water/Wastewater Improvement & Extension Fund - Major CIP Projects Quarterly Report as of Dec 31, 2015 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Original Revised Fiscal % Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2008 - FY 2013 Staff working on a memorandum of understanding with 2 WD0804 M 1.0 MG Elevated Water Storage $ 4,196,600 $ 2,556,000 $ 87,827 $ 2,468,173 3.4% $ 2,468,200 $ 2,468,200 $ - $ 2,468,200 0.0% In Process owner of property Project underway, approximately 98% complete. 3 WD1302 M Garrison Farm Water Storage Tank 2,695,000 4,677,000 4,628,870 48,130 99.0% 1,297,300 1,297,300 1,249,131 48,169 96.3% In Process Anticipated completion by early February. 4 WW1304 M Garrison Farm WW Improvements 2,000,000 3,738,400 3,311,645 426,755 88.6% 628,500 628,500 201,669 426,831 32.1% In Process Project underway, approximately 99% complete. 5 Totals - FY 2008 - FY 2013 $ 8,891,600 $ 10,971,400 $ 8,028,342 $ 2,943,058 73.2% $ 4,394,000 $ 4,394,000 $ 1,450,800 $ 2,943,200 33.0% 6 7 FY 2014 Project underway, general contractor and manufacturer 8 WW1206 Brandywine Pump Station $ 402,000 $ 375,600 $ 274,381 $ 101,219 73.1% $ 101,200 $ 101,200 $ - $ 101,200 0.0% In Process have stalled project. Contractor has mobilized, beginning site reconstruction. 9 WW1303 Westover PS 768,800 1,350,400 77,167 1,273,233 5.7% 1,292,400 1,292,400 19,165 1,273,235 1.5% In Process 10 Totals - FY 2014 $ 1,170,800 $ 1,726,000 $ 351,548 $ 1,374,452 20.4% $ 1,393,600 $ 1,393,600 $ 19,165 $ 1,374,435 1.4% 11 12 FY 2015 13 WQ1503 West Dover Connector Project $ 336,000 $ 338,800 $ 337,787 $ 1,013 99.7% $ 73,600 $ 76,400 $ 75,319 $ 1,081 98.6% Complete 14 WW1504 Lakeview Dr Pump Stn Replacement 450,000 408,400 266,837 141,563 65.3% 359,600 359,600 218,020 141,580 60.6% In Process Project approximately 98% complete. 15 WW1507 Retreat Pump Station Replacement 412,500 396,700 36,331 360,369 9.2% 360,500 360,500 157 360,343 0.0% In Process Project awarded. Notice to Proceed early February. 16 WW1509 West Dover Connector Road Utility Relo 922,000 922,300 922,221 79 100.0% 387,300 387,300 387,180 120 100.0% Complete 17 Totals - FY 2015 $ 2,120,500 $ 2,066,200 $ 1,563,176 $ 503,024 75.7% $ 1,181,000 $ 1,183,800 $ 680,676 $ 503,124 57.5% 18 19 FY 2016 20 --- R Vehicles & Equipment $ 409,500 $ 411,500 $ 305,651 $ 105,849 74.3% $ 103,700 $ 411,500 $ 305,651 $ 105,849 74.3% In Process Meters have been ordered. Approximately 40 meters 21 WD1600 Meter Replacement Project 300,000 300,000 15,833 284,167 5.3% 300,000 300,000 15,833 284,167 5.3% In Process replaced 22 WD1601 R Wellhead Redevelopment 82,500 82,500 51,625 30,875 62.6% 82,500 82,500 51,625 30,875 62.6% In Process Staff to meet with contractor on specific work soon. Staff has identified possible location of future well, 23 WD1605 Future Well Installation 80,000 80,000 - 80,000 0.0% 80,000 80,000 - 80,000 0.0% In Process await schedule to test. 24 WD1606 New Fence-Bayard Ave Water Tower 89,000 84,200 1,763 82,437 2.1% 89,000 84,200 1,763 82,437 2.1% Complete Final invoice paid in January 25 WD1607 R SCADA Equipment Tech Upgrade 83,000 83,000 - 83,000 0.0% 83,000 83,000 - 83,000 0.0% In Process Materials scheduled to be ordered soon. 26 WD1608 Shallow Well #7 Abandonment 15,000 15,000 8,815 6,185 58.8% 15,000 15,000 8,815 6,185 58.8% Complete Awaiting reimbursement by land owner. 27 WD1609 R WTP Process Improvements 284,400 284,400 73,497 210,903 25.8% 284,400 284,400 73,497 210,903 25.8% In Process Design work continuing. 28 WQ1601 R Water Quality Improvements 1,000,000 895,000 - 895,000 0.0% 1,000,000 895,000 - 895,000 0.0% In Process New Street to be bid out in February. Project ongoing, work provided as emergencies arise. 29 WQ1602 R/T Misc Emerg Water Quality Repairs - 75,000 42,691 32,309 56.9% - 75,000 42,691 32,309 56.9% In Process Staff awaiting invoice from Kent County to reimburse. 30 WQ1603 T Reimb KC for Water Main Increase - 30,000 - 30,000 0.0% - 30,000 - 30,000 0.0% In Process 31 WW1503 Hazzletteville Road Interceptor 755,000 462,100 - 462,100 0.0% 462,100 462,100 - 462,100 0.0% In Process Bids received, staff evaluating options. 32 WW1601 Inflow/Infiltration Removal 875,000 623,000 - 623,000 0.0% 875,000 623,000 - 623,000 0.0% In Process Additional projects under final review from DelDot 33 WW1602 Miscellaneous Pump Station Repairs 300,000 300,000 - 300,000 0.0% 300,000 300,000 - 300,000 0.0% Bids to be sent out in February. 34 WW1603 Rolling Acres PS Replacement 52,000 52,000 8,754 43,246 16.8% 52,000 52,000 8,754 43,246 16.8% In Process Design work underway, approx 75% complete. 35 WW1605 DE Ave Sanitary Sewer Extension 25,000 25,000 - 25,000 0.0% 25,000 25,000 - 25,000 0.0% In Process Design work 98% complete, to be bid out in Feb. 36 WW1607 T US 13 East PS #7 Repairs - 97,000 - 97,000 0.0% - 97,000 - 97,000 0.0% In Process Awaiting materials to be delivered 37 WW1608 T St Jones River Sewer Repair - 50,000 - 50,000 0.0% - 50,000 - 50,000 0.0% In Process Work complete, awaiting final video from contractor. 38 WW1609 T McKee Tax Ditch Sewer Repair - 30,000 - 30,000 0.0% - 30,000 - 30,000 0.0% In Process Work complete, awaiting final video from contractor. Project ongoing, work provided as emergencies arise. 39 II1603 T Misc Emergency I&I Repairs - 75,000 5,820 69,180 7.8% - 75,000 5,820 69,180 7.8% In Process 40 Totals - FY 2016 $ 4,350,400 $ 4,054,700 $ 514,448 $ 3,540,252 12.7% $ 3,751,700 $ 4,054,700 $ 514,448 $ 3,540,252 12.7% 41 42 43 Grand Totals $ 16,533,300 $ 18,818,300 $ 10,457,515 $ 8,360,785 55.6% $ 10,720,300 $ 11,026,100 $ 2,665,089 $ 8,361,011 24.2% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is budgeted to start over each fiscal year. No carry forward. SL = State Loan Project - construction phase is financed I = Impact Fee (partially) financed project T = Transfer from blanket WQ or I&I original budget

City of Dover Electric Improvement & Extension Fund - Major CIP Projects Quarterly Report as of Dec 31, 2015 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Current Revised Fiscal % Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2012 - FY 2013 Work is completed. TSI and vibration testing 2 EG1212 M Unit 3 Turbine Inspection/Repair $ 1,760,000 $ 1,713,600 $ 1,699,848 $ 13,752 99.2% $ 53,500 $ 53,500 $ 39,700 $ 13,800 74.2% Complete completed. New Switchgear online, working minor issues with 3 EE1312 M General Scott Switchgear 1,155,000 1,155,000 221,200 933,800 19.2% 1,107,200 1,107,200 173,405 933,795 15.7% In Process vendor, 99% complete 4 Totals - FY 2012 - FY 2013 $ 2,915,000 $ 2,868,600 $ 1,921,048 $ 947,552 67.0% $ 1,160,700 $ 1,160,700 $ 213,105 $ 947,595 18.4% 5 6 FY 2014 7 EE1443 GOTP Transmission Line Relocation $ 550,000 $ 550,000 $ 304,853 $ 245,147 55.4% $ 408,500 $ 408,500 $ 163,326 $ 245,174 40.0% In Process Final bill discrepancy, close out when verified Mechanical and electrical work completed. Testing has been completed. Need to install protective closure around pump skid. Need to replace water 8 EG1416 M VanSant Capacity Increase 1,500,000 1,000,000 693,009 306,991 69.3% 492,200 492,200 185,169 307,031 37.6% In Process skid acid pumps. 9 Totals - FY 2014 $ 2,050,000 $ 1,550,000 $ 997,862 $ 552,138 64.4% $ 900,700 $ 900,700 $ 348,495 $ 552,205 38.7% 10 11 FY 2015 Boiler tube repairs, metallurgical analysis on failed tubes. Safety valve testing to be completed by end 12 EG1504 McKee Unit 3 Boiler System $ 890,000 $ 180,000 $ 107,990 $ 72,010 60.0% $ 80,800 $ 122,800 $ 50,703 $ 72,097 41.3% In Process of January 2016. 13 EG1506 McKee & VanSant Safety Improvement 52,000 52,000 33,776 18,224 65.0% 18,300 18,300 - 18,300 0.0% In Process 14 EE1500 69 kV Rebuild 393,500 330,500 18,182 312,319 5.5% 318,500 318,500 6,153 312,348 1.9% In Process Awaiting pole stakes and State verification of 15 EE1509 West Dover Connector 250,000 250,000 103,938 146,062 41.6% 155,800 155,800 9,729 146,071 6.2% In Process placement 16 EE1513 M Town Point Distribution Feeders 600,000 590,800 374,623 216,177 63.4% 350,000 350,000 133,786 216,214 38.2% In Process Phase 1 about 50% complete Contractor to install conduit to proceed, PS 17 EE1516 Chestnut Grove 299,000 255,000 118,999 136,001 46.7% 136,000 136,000 - 136,000 0.0% In Process completed 18 EE1522 Garrison Oak Park 184,000 184,000 166,523 17,477 90.5% 17,500 17,500 - 17,500 0.0% Complete 19 EE1525 Leander Lakes Apt Phase 1 73,000 73,000 45,658 27,342 62.5% 69,400 69,400 42,049 27,351 60.6% In Process Awaiting final approval on closing in electrical loop 20 EE1526 Playtex Addition 354,100 354,100 278,704 75,396 78.7% 150,000 150,000 74,568 75,432 49.7% In Process Complete but awaiting final concrete bill 21 EE1544 Nottingham Meadows 28,600 28,600 10,245 18,355 35.8% 26,600 26,600 8,234 18,366 31.0% Complete 23 EE1547 NBR Properties 16,600 14,200 14,012 188 98.7% 11,500 11,325 175 98.5% Complete 24 Totals - FY 2015 $ 3,154,400 $ 2,325,800 $ 1,280,761 $ 1,045,039 55.1% $ 1,322,900 $ 1,376,400 $ 336,547 $ 1,039,853 24.5% 25 26 FY 2016 27 --- R Metering Infrastructure $ 150,000 $ 150,000 $ - $ 150,000 0.0% $ 150,000 $ 150,000 $ - $ 150,000 0.0% In Process 28 --- R Vehicles & Equipment 464,300 464,300 155,858 308,442 33.6% 464,300 464,300 155,858 308,442 33.6% In Process 29 EG1601 McKee Building Equipment Replacement 42,000 42,000 3,863 38,137 9.2% 42,000 42,000 3,863 38,137 9.2% In Process Building heating modifications. Unit 3 ID fan motor inspection/repairs. TR-22 chart 30 EG1607 Unit 3 Auxilary Equipment 135,000 135,000 79,313 55,687 58.8% 135,000 135,000 79,313 55,687 58.8% In Process recorder replacement. Computers purchased and sent to VIM Technologies 31 EG1608 McKee & VanSant CEMS Upgrade 89,000 89,000 - 89,000 0.0% 89,000 89,000 - 89,000 0.0% In Process for imaging. Hydraulic system sequencing valve repairs, gas line 32 EG1609 VanSant Unit 11 Component Replacem 21,000 21,000 - 21,000 0.0% 21,000 21,000 - 21,000 0.0% In Process supply line regulators Front lobby access improvements, replace obsolete 2- 33 EG1610 R McKee/VanSant Safety & Compliance 157,000 157,000 - 157,000 0.0% 157,000 157,000 - 157,000 0.0% In Process way radios Expenditures have been in support of T&D 34 EG1611 McKee/VanSant Preserve Structure 215,000 215,000 4,707 210,293 2.2% 215,000 215,000 4,707 210,293 2.2% In Process transformer repairs. Work to be completed in spring 2016 outage. Note the project was changed from Unit #3 Circ Water Pipe Inspection to Van Sant Exhaust Plenum Replacement. Inspection was completed in 2012. 35 EG1612 Van Sant Exhaust Plenum Replacement 469,000 469,000 161,392 307,608 34.4% 469,000 469,000 161,392 307,608 34.4% In Process Scope of work to be determined. Inspection was completed in 2012. Scope of work to 36 EG1613 McKee Unit 3 Stack Repairs 485,000 485,000 - 485,000 0.0% 485,000 485,000 - 485,000 0.0% be determined. 37 EE1603 Transmission Line Maintenance Program 75,000 75,000 - 75,000 0.0% 75,000 75,000 - 75,000 0.0% In Process 38 EE1604 R Lighting Proj & Rehab 67,000 67,000 20,560 46,440 30.7% 67,000 67,000 20,560 46,440 30.7% In Process 69 kV Cable Replacement North Street 39 EE1605 (originally proj EE1520) 565,700 135,000 - 135,000 0.0% 135,000 135,000 - 135,000 0.0% In Process Design in work 40 EE1606 Distribution Capacitors and Controls 50,000 50,000 - 50,000 0.0% 50,000 50,000 - 50,000 0.0% In Process 41 EE1607 Horsepond URD - Distribution Feeders 67,000 67,000 5,162 61,838 7.7% 67,000 67,000 5,162 61,838 7.7% In Process 42 EE1610 Frazier 900 Circuits 10,000 10,000 - 10,000 0.0% 10,000 10,000 - 10,000 0.0% In Process 43 EE1612 Dover AFB Substation Rebuild 30,000 30,000 - 30,000 0.0% 30,000 30,000 - 30,000 0.0% In Process 44 EE1616 R New Developments 2,500,000 1,852,200 - 1,852,200 0.0% 2,500,000 1,852,200 - 1,852,200 0.0% In Process 45 EE1617 Oak Grove Trailer Park - Dist Upgrade 78,500 78,500 - 78,500 0.0% 78,500 78,500 - 78,500 0.0% In Process 46 EE1618 Lakeland - Distribution Upgrades 63,000 63,000 - 63,000 0.0% 63,000 63,000 - 63,000 0.0% In Process

City of Dover Electric Improvement & Extension Fund - Major CIP Projects Quarterly Report as of Dec 31, 2015 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR 47 EE1619 Route 8/Mifflin Road - Dist Upgrade 51,500 51,500 - 51,500 0.0% 51,500 51,500 - 51,500 0.0% In Process Awaiting easement paperwork from residents 48 EE1620 Route 8 Taps - Distribution Upgrade 38,500 38,500 - 38,500 0.0% 38,500 38,500 - 38,500 0.0% In Process Awaiting easement paperwork from residents 49 EE1621 Townsend Brothers - Dist Upgrade 14,500 14,500 - 14,500 0.0% 14,500 14,500 - 14,500 0.0% In Process Boring complete, awaiting wiring/terminations 50 EE1622 Persimmon Tree Apts - Dist Upgrade 62,000 62,000 - 62,000 0.0% 62,000 62,000 - 62,000 0.0% In Process Awaiting underground crew to start 51 EE1623 T DNREC R&R Metering - 41,000 - 41,000 0.0% - 41,000 - 41,000 0.0% In Process 52 EE1625 T Public Works Wetland Project - 78,000 - 78,000 0.0% - 78,000 - 78,000 0.0% In Process 53 EE1626 T Washington Street Lights - 40,000 - 40,000 0.0% - 40,000 - 40,000 0.0% In Process 54 EE1627 Dover East Estates - Dist Upgrade 130,000 130,000 - 130,000 0.0% 130,000 130,000 - 130,000 0.0% In Process 55 EE1629 T Tall Pine Condos - 43,000 - 43,000 0.0% - 43,000 - 43,000 0.0% In Process Awaiting developer go ahead In discussion with architects and environmental 56 EE1630 Reed Street Roof Repair/Replacement 201,800 151,800 - 151,800 0.0% 201,800 151,800 - 151,800 0.0% In Process personnel 57 EE1631 North Street OH to UG - Dist Upgrade 100,000 100,000 - 100,000 0.0% 100,000 100,000 - 100,000 0.0% In Process 58 EE1632 T Blue Hen Corp - Phase I - 25,600 23,150 2,450 90.4% - 25,600 23,150 2,450 90.4% In Process 59 EE1633 T State Street Commons Fiber Optic Proj - 64,000 40,233 23,767 62.9% - 64,000 40,233 23,767 62.9% Complete 60 EE1635 T McKee Road - Edgewell - 7,000 - 7,000 0.0% - 7,000 - 7,000 0.0% In Process 61 EE1636 T Clearview - Phase 4 - 160,000 117,020 42,980 73.1% - 160,000 117,020 42,980 73.1% In Process 62 EE1637 T Dover Town Center Flex Site - 13,900 - 13,900 0.0% - 13,900 - 13,900 0.0% In Process 63 EE1638 T Dover Town Center - 35,200 22,953 12,247 65.2% - 35,200 22,953 12,247 65.2% In Process Install 90% complete 64 EE1639 T Outback Steakhouse - 30,600 - 30,600 0.0% - 30,600 - 30,600 0.0% In Process Awaiting contractor so we can terminate connections 65 EE1641 Reed St - Building/Safety Improvements - 50,000 42,803 7,197 85.6% - 50,000 42,803 7,197 85.6% In Process 66 EE1642 T Del Homes Warehouse - 18,000 15,000 3,000 83.3% - 18,000 15,000 3,000 83.3% In Process Awaiting contractor so we can terminate connections 67 EE1643 T Winner Volkswagen - 13,300 - 13,300 0.0% - 13,300 - 13,300 0.0% In Process Awaiting go-ahead from contractor 68 EE1644 T Retreat Pump Station - 7,300 - 7,300 0.0% - 7,300 - 7,300 0.0% In Process Awaiting Public Works go-ahead 69 EE1645 T Dover Family Cosmetic - 10,300 - 10,300 0.0% - 10,300 - 10,300 0.0% In Process 70 EE1646 T Loockerman Retail - 26,500 - 26,500 0.0% - 26,500 - 26,500 0.0% In Process 71 EE1647 T Ollies Transformer Replacement - 22,600 - 22,600 0.0% - 22,600 - 22,600 0.0% In Process Received permits 72 Totals - FY 2016 $ 6,331,800 $ 5,889,600 $ 692,015 $ 5,197,585 11.7% $ 5,901,100 $ 5,889,600 $ 692,015 $ 5,197,585 11.7% 73 74 Grand Totals $ 14,451,200 $ 12,634,000 $ 4,891,686 $ 7,742,314 38.7% $ 9,285,400 $ 9,327,400 $ 1,590,163 $ 7,737,237 17.0% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. B = Bonded Project R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. S = State fully or partially reimbursed project

Monthly Management Committee Update October 2015 Prepared By: Arline Holloway Client Services Manager Phone: 904-360-1347 Email: aholloway@teainc.org Date: November 19, 2015 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356.3900  Toll-Free: 800.423.4800

Monthly Management Committee Update October 2015 Table of Contents I. Executive Summary 1 Power Supply Summary 1 Supply Source Summary 2 Supply Variance 2 Generation Summary 3 Emissions Summary 5 Risk Management Summary 9 II. Budget Report 10 III. Operations Management 13 Executive Summary 13 IV. Appendix: PJM Invoice 26 November 19, 2015 Page ii

Monthly Management Committee Update October 2015 I. EXECUTIVE SUMMARY POWER SUPPLY SUMMARY Power Supply Costs FY2015-16 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Budget Actual Overall Power Supply costs were $503,134 below budget predominantly driven by lower PJM-Energy, Congestion and Losses and lower Hedge Energy costs. Dover’s budgeted cost for all power supply (capacity AND energy) was $73.90/MWh. The actual cost of all power supply (capacity AND energy) was $64.56/MWh in a positive budget variance of $9.34. The actual cost of energy alone was $35.80/MWh as opposed to a budgeted energy cost of $43.23. Dover’s total load was 55,510 MWh versus a forecasted load of 55,300 MWh. Hedge purchases totaled 42,128 MWh, which was 76% of the actual load. The budgeted hedge purchase totaled 45,976 MWh, which was 83% of the budgeted load. Dover’s power purchases from hedge transactions totaled $1,721,267. Purchases from PJM (energy and fees) totaled $1,573,407.78. This number includes Locational Reliability charge of $904,154.06 and DA spot market energy charges of $433,404.80. Dover’s planned energy purchase from the SunPark solar installation was 1,224 MWhs. Dover’s actual energy purchase from the SunPark installation was 1,308 MWh. November 19, 2015 Page 1

Monthly Management Committee Update October 2015 Supply Source Summary Supply Variance November 19, 2015 Page 2

Monthly Management Committee Update October 2015 GENERATION SUMMARY Generation Revenue FY2015-16 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- $(100,000) Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Budget Actual Net Generation Revenue for the month of October was $602,485 versus a budget of $473,700. The favorable budget variance was due to Non-Production Revenue $873,044. November 19, 2015 Page 3

Monthly Management Committee Update October 2015 Generation Breakdown City of Dover Monthly Wholesale Generation Formula October 2015 Net Generation 0.00 D Production Margin PJM - Generation Economic and Reliability Dispatch $ 2,269.75 A Natural Gas & Oil Consumption Purchases for Generation $ (3,975.00) Natural Gas Transport $ - Eastern Shore Cashout $ - Oil Consumption $ - Subtotal: Natural Gas & Oil Consumption $ (3,975.00) B Gross Production Margin $ (1,705.25) C = (A + B) $/MWh Generation Production Gross Margin $ - E = (C/D) PJM - Capacity Generation Capacity Credit $ 902,145.57 Reactive Supply and Transmission Losses $ 45,546.40 Subtotal: PJM - Capacity $ 947,691.97 F All in Generation Margin All in Generation Margin Total $ 945,986.72 (G = C + F) November 19, 2015 Page 4

Monthly Management Committee Update October 2015 EMISSIONS SUMMARY Emissions Allowance and Solar Renewable Energy Summary through October 31, 2015 The reinstated Cross-State Air Pollution Rule (CSAPR) replaced the Clean Air Interstate Rule (CAIR) beginning January 1, 2015. The State of Delaware was included in the CAIR footprint but is not included in the CSAPR footprint. CAIR allowances cannot be used for CSAPR compliance, so Dover’s CAIR allowances essentially became valueless when CSAPR was reinstated. The separate Clean Air Act acid rain deposition control program (CAA Title IV) which governs SO2 national allowance trading program remains in effect for Dover. Beginning with the January 2015 report, TEA no longer includes a CAIR summary. It will continue to report on Dover’s Clean Air Act Title IV SO2 allowances. Market liquidity for Title IV SO2 allowances is very low, with few transactions occurring. The following table shows estimated values for Dover’s banked allowances, based on a market price assessment published by SNL Energy. Market Value for Clean Air Act Title IV Allowances Commodity $/Ton1 Tons Market Value SO2 Allowances – Title IV $0.56 15,018 $8,410 Total $8,410 Regional Greenhouse Gas Initiative The State of Delaware is a participant in the Regional Greenhouse Gas Initiative (RGGI). The City of Dover must comply with RGGI by surrendering carbon dioxide (CO2) allowances pursuant to the State of Delaware’s laws (Title 7, Chapter 60, Sub-Title II-A). Dover had more than a sufficient number of RGGI allowances allocated to it to cover its requirements through the first compliance period (calendar years 2009-2011) and second compliance period (2012-2014). Any unused allowances are carried over (“banked”) for subsequent years. The table below includes Dover’s historical activities and includes projections through 2020. Two projections are presented: (1) future annual emissions based on the average for 2009-2014, and (2) future annual emissions based on 2010 actual CO2 emissions, which was the highest emissions year between 2009 and 2014. 1 October 20, 2015 Daily Power Report by SNL Energy November 19, 2015 Page 5

Monthly Management Committee Update October 2015 Dover, DE RGGI Allowance History and Forecast - October, 2015 CO2 Tons EOY Historical CO2 Tons CO2 Tons Projected EOY Compliance CO2 Allowances Allocated CO2 Projected EOY Emitted - Allowance Emitted - Proj. Emitted - Proj. Balance Year (CY) Purchased Allowances Balance (High) Historical Balance (Avg) (High) (Average) 2009 62,184 5,796 56,388 2010 49,747 32,971 73,164 2011 37,311 17,746 92,729 2012 27,983 15,957 104,755 2013 24,818 10,230 119,343 2014 1,000 N/A 25,427 94,916 94,916 94,916 2015 14,000 N/A 11,577 97,339 18,021 33,000 90,895 75,916 2016 N/A 18,021 33,000 72,874 42,916 2017 N/A 18,021 33,000 54,853 9,916 2018 N/A 18,021 33,000 36,831 -23,084 2019 N/A 18,021 33,000 18,810 -56,084 2020 N/A 18,021 33,000 789 -89,084 Dover RGGI Allowance History and Projection October 30, 2015 150,000 100,000 Tons of CO2 50,000 0 -50,000 -100,000 Historical CO2 Emissions Projected CO2 Emissions - Avg CO2 Tons Emitted - Proj. (High) EOY Historical Allowance Balance Projected EOY Balance (Average) Projected EOY Balance (High) November 19, 2015 Page 6

Monthly Management Committee Update October 2015 The table and chart indicate that Dover could run out of banked allowances as early as the end of 2017 under the high emissions scenario and by the end of 2020 under the average scenario. Therefore, Dover has recently initiated a program to participate in RGGI’s quarterly auctions to ensure it has adequate allowances in the future. In anticipation of needing additional RGGI allowances in the future, Dover has participated in the last four auctions and plans to continue to participate as required. The table below shows details for Dover’s allowance purchases for each of these previous auctions. Dover’s RGGI Allowance Purchase History RGGI Auction Auction Clearing Quantity Of Number Auction Date Price ($/Ton) Allowances Awarded Total Cost 26 December 3, 2014 $5.21 1,000 $ 5,210 27 March 11, 2015 $5.41 6,000 32,460 28 June 3, 2015 $5.50 4,000 22,000 29 September 3, 2015 $6.02 4,000 24,080 Totals 15,000 $83,750 The chart and table above does not include August or September actual CO2 emissions deductions. These will be included in next month’s report. The next quarterly RGGI auction will be held on December 2, 2015. Dover has submitted its intent to bid in the upcoming auction and will be required to post financial security by November 24 to participate. TEA will provide recommendations for Auction 30 during the Risk Management Committee (RMC) meeting. Based on the October 19, 2015 ICE price for the December 2015 strip ($6.81/ton), the estimated market value of Dover’s existing 96,1562 ton RGGI allowance bank is $654,8223. On November 17, 2015 RGGI held a stakeholder meeting to prepare for the 2016 RGGI program review. Discussion topics included EPA’s Clean Power Plan, potential changes to the RGGI allowance cap post 2020 and a discussion about RGGI’s Flexibility Mechanisms. TEA will summarize the results of this stakeholder meeting in the near future. Renewable Energy Certificates Dover owns two photovoltaic systems totaling 15 kW, consisting of one 5 kW unit at the Utilities Administration Building and two 5 kW units at the McKee Run generating station. Dover also receives solar energy produced by the 10 MW Dover Sun Park, which is owned by White Oak Solar Energy, LLC. In addition to all of the physical energy produced by the Sun Park, Dover receives 15% of Sun Park’s Solar Renewable Energy Credits (SRECS). 2 Subject to verification from RGGI COATS account. 3 i.d. November 19, 2015 Page 7

Monthly Management Committee Update October 2015 Dover participates in the Delaware Municipal Electric Renewable Portfolio Standard (DMERPS) for compliance with the State of Delaware’s RPS laws applicable to municipal utilities. The first compliance period under DMERPS was for the 12 months ending May 2014 and the second compliance period was for the 12 months ending May 2015. Last month, it was reported that SRECs from the White Oak Solar Energy Center are eligible for a 10% adder because the facility was constructed using a Delaware labor force. TEA, DEMEC and Dover staff have reconciled this increase in SRECs. PJM’s GATs system does not include a mechanism to retroactively record the 10% labor bonus SRECs. Therefore, DEMEC and TEA have had to account for these bonus SRECs outside PJM’s GATS. The revision indicated that Dover over-complied in the first compliance period by 290.2 SRECs. These were used to off-set a portion of the second control period’s requirement to surrender 3,435 SRECs, resulting in a net surrender for the second control period of 3,144.8 SRECs. Through the end of generation month September 2015, Dover had accumulated a total of 5,853 SRECs from these renewable energy resources, net of 2,941 SRECs transferred to DEMEC for surrender on October 3, 2014 for the first compliance period and 2,861 SRECs for the second compliance period on November 9, 2015. Delaware periodically holds SRECs auctions; however, these auctions are for size tiers N1-N3, E1 and E2. The Dover Sun Park is in the N4 tier for large-scale facilities. State-wide carve outs for Tier 4 has been fully subscribed, so there is not a market for tier T4 SRECs in Delaware. The nearest viable market for Dover’s SRECs is Pennsylvania. Daily settlement prices are from Flett Exchange Environmental Services. The most recent settlement prices for Pennsylvania SRECS are used in the table below. SREC Balance 10% Bonus Transferred to Net SREC SREC Vintage Market Before SRECs for DEMEC for Balance After (June 1 – Clearing 2014/15 Sun Park 2014/15 Transfer and Market May 31) Price Compliance Labor4 Compliance Surrender Value Bonus GATs 2011/2012 $ 0.00 0 290.2 290.2 0 $0 2012/2013 $ 0.00 2,173 215.7 215.7 2,173 0 $0 2013/2014 $15.00 2,701 268.0 68.1 687 2,213.9 3,208 2014/2015 $15.00 2,685 265.0 0 0 2,950.0 44,250 2015/2016 $15.00 1,155 114.6 0 0 1,269.6 19,044 Totals 8,714 1,153.5 574 2,861 6,433.5 $66,502 4 Note: Retroactive Bonus Allowances were not transferred within PJM’s GATS system but were used to off-set 2014/15 compliance obligation. November 19, 2015 Page 8

Monthly Management Committee Update October 2015 TEA continues to recommend to Dover to retain these allowances for compliance with its Renewable Portfolio Standard (RPS). Additionally, Dover will need to acquire additional SRECs resources in future years. It is apparent that Dover’s portion of SRECs produced by White Oak Solar Energy Center will not be sufficient future years as the compliance requirements increase. DEMEC has indicated that it expects to have excess SRECs available for Dover’s compliance requirements. This and other alternatives will need to be evaluated in the near future. RISK MANAGEMENT SUMMARY Forward power prices in PJM have decreased from last month. Blended Cost Monthly Change PY Hedge Ratio ($/MWh) ($/MWh) 2015-16 73% $42.57 ($0.51) 2016-17 54% $40.97 ($0.41) 2017-18 51% $40.41 ($0.42) 2018-19 41% $39.19 ($0.47) 2019-20 20% $36.30 ($0.38) November 19, 2015 Page 9

Monthly Management Committee Update October 2015 II. BUDGET REPORT Budget Actual Variance Oct-15 Oct-15 Gross Load 55,300 55,510 (210) Power Supply Hedged Energy $1,874,900 $1,721,267 $153,633 PJM - Energy, Congestion & Losses $347,400 90,213 $257,187 PJM - ARR, Transmission and Fees $650,000 588,201 $61,799 Dover SUN Park Energy $168,400 $175,542 ($7,142) Dover SUN Park RECs $24,400 $30,249 ($5,849) RECS (Solar and Non-Solar) $56,100 $0 $56,100 RGGI Credit Costs $0 $0 $0 Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $882,400 $894,995 ($12,595) Subtotal - Power Supply $4,086,600 $3,583,466 $503,134 Power Generation O&M Plant O&M 464,800 $343,502 121,298 Subtotal Generation O&M $ 464,800 343,502.00 $121,298 Power Generation Production Margin PJM - Economic and reliability dispatch $0 $ (2,269.75) $2,270 Fuel Costs - Natural Gas $0 $ 3,975.00 ($3,975) Fuel Costs - Oil $0 - $0 Testing Costs $0 - $0 Subtotal Generation Production Margin $0 $1,705 $ (1,705) Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($908,500) $ (902,146) ($6,354) Emissions Allowance Sales $0 $ - $0 Reactive Supply - Gas ($30,000) $ (45,546) $15,546 Subtotal - Non-Production Revenue ($938,500) ($947,692) $9,192 SubTotal - All Generation ($473,700) ($602,485) $128,785 Total - Utilities Cost $3,612,900 $2,980,981 $631,919 Unit Costs Total - Power Supply $73.90 $64.56 $9.34 Total - Power Generation ($8.57) ($10.85) $2.29 Final Cost of Service to City of Dover Ratepayers $65.33 $53.70 $11.63 November 19, 2015 Page 10

Monthly Management Committee Update October 2015 Variance Analysis  Power Supply  Dover consumed 210 MWh more than forecasted for the month.  Dover saw a favorable variance for budgeted Hedged Energy of $153,633.  Dover experienced a favorable variance for budgeted PJM - Energy, Congestion & Losses of $257,187 and a favorable variance for PJM ARR, Transmission and Fees of $61,799.  This resulted in a net power supply cost of $53.70/MWh, $11.63/MWh below budget.  The city realized a favorable variance of $503,134 for power supply vs. the monthly budget.  Dover Sun Park generated 14 MWhs more than forecasted.  Generation  Net Generation Revenue had a favorable variance of $128,785. November 19, 2015 Page 11

Monthly Management Committee Update October 2015 Budget Actual Variance YTD YTD Gross Load 271,400 274,083 -2,683 Power Supply Hedged Energy $9,395,500 $9,200,058 $195,442 PJM - Energy, Congestion & Losses $2,740,300 996,772 $1,743,528 PJM - ARR, Transmission and Fees $2,732,500 2,077,844 $654,656 Dover SUN Park Energy $784,400 $886,652 ($102,252) Dover SUN Park RECs $150,200 $156,179 ($5,979) RECS (Solar and Non-Solar) $224,400 $0 $224,400 RGGI Credit Costs $43,800 $24,080 $19,720 Management Fees $332,000 $332,000 $0 PJM - Capacity UCAP Obligated Purchased $3,501,100 $3,537,574 ($36,474) Subtotal - Power Supply $19,904,200 $17,211,161 $2,693,039 Power Generation O&M Plant O&M $2,498,800 $ 1,929,581 $569,219 Subtotal Generation O&M $2,498,800 $ 1,929,581 $569,219 Power Generation Production Margin PJM - Economic and reliability dispatch ($569,400) ($575,353) $5,953 Fuel Costs - Natural Gas $389,200 $223,660 $165,540 Fuel Costs - Oil $0 $28,068 ($28,068) Testing Costs $0 $0 $0 Subtotal Generation Production Margin ($180,200) ($323,625) $ 143,425 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($3,604,700) ($3,016,487) ($588,213) Emissions Allowance Sales $0 $0 $0 Reactive Supply - Gas ($120,000) ($263,996) $143,996 Subtotal - Non-Production Revenue ($3,724,700) ($3,280,483) ($444,217) SubTotal - All Generation ($1,406,100) ($1,674,527) $268,427 Total - Utilities Cost $18,498,100 $15,536,634 $2,961,466 Unit Costs Total - Power Supply $73.34 $62.80 $10.54 Total - Power Generation ($5.18) ($6.11) $0.93 Final Cost of Service to City of Dover Ratepayers $68.16 $56.69 $11.47 November 19, 2015 Page 12

Monthly Management Committee Update October 2015 III. OPERATIONS MANAGEMENT EXECUTIVE SUMMARY During the month of October, there were no recordable accidents so the facility has gone 198 days without an OSHA Recordable Accident through October 31, 2015 and there were no lost time accidents so it has been 292 days since the last lost time accident at the facilities. There were no environmental incidents during the month of October. No units were dispatched for the month of October, and on October 12 the planned outage was started on units 1, 2, and 3 for boiler inspections and safety valve work. Units 1 and 2 outages were cleared on October 27 at 1500 hours. The Unit 3 planned outage was cleared October 29 at 0900. All Units remained available for the remainder of the month. The actual expenses for the month of October are $343,502 against a budgeted amount of $464,825 for a favorable variance of $121,323 or 26.10%. The variance was due to the following: A favorable monthly variance of $50,242 was due to not having a full complement of employees for this time period, an unfavorable monthly variance of $574 was due to additional work done to support the plant winterization project. Part of this was offset by the positive variance in water and sewer costs that were lower than expected for the month and provided a favorable monthly variance of $71,655 due to the timing of utility bill payments which resulted in (2) months of utilities expenses paid in September and none in October. November 19, 2015 Page 13

Monthly Management Committee Update October 2015 NAES Corporation Dover, Delaware October 2015 Monthly Report Rich Newman, I,C&E Tech, and Phil Marvel, Maintenance Supervisor, celebrate Rich’s past service at a luncheon held in Rich’s honor November 19, 2015 Page 14

Monthly Management Committee Update October 2015 Table of Contents 1.0 Environmental, Health and Safety 2.0 Financials 3.0 Operations 4.0 Maintenance 5.0 Capital Improvement Projects (CIP) 6.0 General Plant Information 7.0 Training 8.0 Upcoming Events Cover picture: Rich Newman recently was determined to be restricted from certain portions of his job requirements. He was put on short term disability with no hopes of recovery the job required ability he is unable to perform. He will transfer to long term disability once his short term benefits run out. November 19, 2015 Page 15

Monthly Management Committee Update October 2015 1.0 Environmental, Health and Safety During the month of October, there were no recordable accidents, lost time accidents or environmental incidents. The facility has gone 198 days through October 31, 2015 without an OSHA Recordable Accident or a Lost Time since the April 16, 2015 reportable accident. There was one Near Miss reported on October 30, 2015 at McKee Run. Prior to a delivery of bulk shipment of caustic liquid at McKee Run, an operator noticed caustic liquid dripping from the off-loading pipe. The operator found that the check valve that bleeds-off caustic fill line was not working properly. During the last caustic off-load, the operators didn’t clear the line by venting residual liquid to the Neutralization Pit. As of October 31, 2015, two (2) employees need CPR/First Aid and AED training. They are scheduled to attend a class on November 13, 2015. During the month of October, there were no IWW discharges to the Kent County Public Works sewer system. A representative sample of the industrial discharge was taken on October 9, 2015. McKee Run is still waiting on the final analytical results from this sampling event. McKee Run submitted a waiver of cyanide analysis to the Kent County Public Works division since cyanide was not detected in four (4) consecutive quarters. No response has been received by Kent County Public Works to date on a waiver determination. During the month of October, representative storm water samples were collected as part of the required semi-annual NPDES sampling event at Outfall 001, 004, 005 and 006. Additionally, Delaware River Basin Commission (DRBC) storm water annual samples were collected from Outfalls 001 and 004 and analyzed for PCB congeners. Quarterly Visual Inspections of discharged storm water was also evaluated at this time. The October DMR was not submitted to DNREC in time for this report. The DMR will be submitted to DNREC before the 28th of November. An operator completed a storm water visual inspection form prior to discharging accumulated storm water from Outfall 006 and submitted to DNREC for review. No NPDES exceedances have been identified. All non-contact cooling tower blowdown water is being discharged directly to the Kent County Department of Public Works under the facilities Industrial Wastewater Discharge Permit #18. Van Sant’s final wet compression stack testing data and report were submitted to DNREC and EPA for review on October 23, 2015. In regards to a former incident that occurred in March 2015, the City of Dover-McKee Run Generating Station received a formal Notice of Violation from DNREC for failure to submit the required compliance certification report for CO2 allowances during the control period between 2012-2014 by March 1, 2015 deadline. The City of Dover has subsequently transferred 100% of the projected CO2 allowances from McKee Run’s account to Van Sant’s new control period account. November 19, 2015 Page 16

Monthly Management Committee Update October 2015 Environmental, Health and Safety Statistics Fiscal Year to Date October 7/1/2015-6/30/2016 NOVs 0 1 Opacity Deviations 0 1 Environmental Deviations 0 0 OSHA Recordable 0 0 OSHA LTA's 0 0 First Aid cases 0 0 Restricted Workday Accident 0 0 Near Miss 1 2 Man Hours Worked 4364.5 17691.25 Date of OSHA Recordable: 4/16/2015 Days since last Recordable: 198 Date of Lost Time Accident: 1/12/2015 Days since last LTA: 292 NOx Summary – Ozone Season (May-Sep) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2013 1.1 1.7 19.3 1.3 23.4 2014 0.4 0.6 35 0.8 36.8 2015 0.1 0.2 7.5 2.6 10.4 NOx Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2013 1.1 1.7 19.4 1.3 23.5 2014 0.8 1.1 39.8 3.7 45.4 2015 0.1 0.2 9.7 3.8 13.8 SO2 Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2012 0 0 0 0.1 0.1 2014 0 0 0.4 0.6 1 2015 0 0 12.1 0.8 12.9 November 19, 2015 Page 17

Monthly Management Committee Update October 2015 SO2 Allowance Summary SO2 Allowances Available Total SO2 Tons SO2 Allowance SO2 Allowances Sold (Per Unit, Prior to Sale & SO2 Allowance Emitted – Vintage - YTD Reconciliation) Balance* U3 & U11 YTD Unit #3 Unit #11 2013 and earlier 0 10,365 690 2 11,053 2014 0 1,850 138 1 1,987 2015 0 1,850 138 11 1,978 Total SO2 Allowance Balance: 15,018 *Note – Emissions allowances are deducted according to oldest vintage first, unless otherwise directed. CO2 Allowance Summary CO2 CO2 Allowances Available Total CO2 Allowance Allowances (Per Facility, Prior to Sale)* CO2 CO2 RGGI Account Vintage Bought/Sold Tons Allowance Balance YTD McKee Run VanSant Emitted 2014 and earlier 1,000 194,244 7,799 108,126 94,917 2015 14,000** 2,176 403 7,340 1,239 Total CO2 Allowance Balance: 96,156 *Note: CO2 allowance values are provided by the RGGI CO2 Allowance Tracking System. **Note: 10,000 CO2 Tons Purchased in 2015 Auction to date. This table remains in a state of development as we are working to obtain accurate data for proper status. 2.0 Financials Monthly and year-to-date financial results as compared with the approved power plant budget for the Generation Units are provided below. October 2015 Actual Budget Variance Personnel $226,958 $277,200 $50,242 Materials & Supplies $12,274 $11,700 ($574) Administrative Expenses $104,270 $175,925 $71,655 Total $343,502 $464,825 $121,323 July 2015 thru October 2015 Actual Budget Variance Personnel $885,237 $1,333,800 $448,563 Materials & Supplies $54,195 $127,050 $72,855 Administrative Expenses $990,155 $1,038,000 $47,845 Total $1,929,587 $2,498,850 $569,263 November 19, 2015 Page 18

Monthly Management Committee Update October 2015 2.1 Variance analysis: The actual expenses for the month of October are $343,502 against a budgeted amount of $464,825 for a favorable variance of $121,323 or 26.10%. The variance was due to the following: PERSONNEL EXPENSES: A favorable monthly variance of $50,242 was due to not having a full complement of employees for this time period. As a result, this impacted three (3) labor accounts – Straight Time, Overtime, and Labor Burdens. MATERIALS AND SUPPLIES EXPENSES: An unfavorable monthly variance of $574 was due to additional work done to support the plant winterization project. Part of this was offset by the positive variance in water and sewer costs that were lower than expected for the month. ADMINISTRATIVE EXPENSES: A favorable monthly variance of $71,655 was due to timing of utility bill payments which resulted in (2) month’s being expensed in September and none in October. In addition, the pollution liability insurance costs that were budgeted for October were expensed in July for fiscal year 2016. 3.0 Operations Unit Operations / Outages / Trips: No units were dispatched for the month of October by PJM or TEA. On October 12 the planned outage was started on units 1, 2, and 3 for boiler inspections and safety valve work. Units 1 & 2 were outage was cleared on October 27 at 1500 hours. The Unit 3 planned outage was cleared October 29 at 0900. All Units remained available for the remainder of the month. Month of October 2015 McKee McKee McKee MRGS VanSant Total ALL Unit 1 Unit 2 Unit 3 TOTAL Unit 11 Units Capacity: (MW) 17 17 102 136 39 175.00 On Line Hours: (HRS) 0 0 0 0 0 0 Starts: (#) 0 0 0 0 0 0 Gross Generation: (MWh) 0 0 0 0 0 0 Net Generation: (MWh) 0 0 0 0 0 0 Total Auxiliaries: (MWh) 0 0 0 0 0 0 Auxiliaries purchased: (MWh) 23.604 23.604 151.661 198.869 4.182 203.873 Fuel Gas Used: (MMBTU) 0 0 0 0 0 0 Fuel Oil Used: (MMBTU) 0 0 0 0 0 0 Fuel Oil Used: (Gallons) 0 0 0 0 0 0 Total Fuel: (MMBTU) 0 0 0 0 0 0 Net Heat Rate: (BTU/KWh) 0 0 0 0 0 0 Unit Trips: (#) 0 0 0 0 0 0 Capacity Factor: (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Availability Factor: (%) 51.88% 51.88% 46.24% 50.00% 100.00% 62.50% Commercial Unavailability : (%) 0.0 0.0 0.0 0.0 0.0 0.0 Planned Outage Hours (HRS) 358.000 358.000 344.000 1,060.000 0.0 1,060.000 Maintenance Outage Hours: (HRS) 0.0 0.0 0.0 0.0 0.0 0.0 Forced Outage Hours: (HRS) 0.0 0.0 0.0 0.0 0.0 0.0 Equivalent Derate Hours: (HRS) 0.0 0.0 0.0 0.0 0.0 0.0 Reserve Shutdown Hours: (HRS) 386 386 344 1,116 0 1,116 HW Boiler Gas Usage: (MMBTU) 0 0 November 19, 2015 Page 19

Monthly Management Committee Update October 2015 2015-2016 Fiscal Year - July 2015 thru October 2015 McKee McKee McKee MRGS VanSant Total ALL Unit 1 Unit 2 Unit 3 TOTAL Unit 11 Units Capacity: (MW) 17 17 102 136 39 175.00 On Line Hours: (HRS) 7.233 10.166 216.731 234.13 14.349 248.48 Starts: (#) 1 3 21 25 4 29.00 Gross Generation: (MWh) 81.874 96.694 8,868.27 9,046.83 548.985 9,595.82 Net Generation: (MWh) 79.759 92.259 7983.59 8155.608 548.611 8704.22 Total Auxiliaries: (MWh) 109.472 111.792 1,788.450 2009.714 6.816 2,016.530 Auxiliaries purchased: (MWh) 107.354 107.354 907.871 1,122.579 6.442 1,129.021 Fuel Gas Used: (MMBTU) 958.55 2059.93 97372.19 100390.7 7118.801 107509.47 Fuel Oil Used: (MMBTU) 0.00 0.00 7162.129 7162.129 0 7162.13 Fuel Oil Used: (Gallons) 0.00 0.00 51,181.00 51,181.00 0.00 51181.00 Total Fuel: (MMBTU) 958.55 2059.93 104534.5 107553 7118.801 114671.76 Net Heat Rate: (BTU/KWh) 12.02 22.33 12.705 15.683 12.959 28.64 Unit Trips: (#) 0 0 0 0 0 0 Capacity Factor: (%) 21.00% 25.00% 354.00% 272.00% 64.00% 336.00% Availability Factor: (%) 87.87 87.87 86.45 87.40 100.0 90.55 Commercial Unavailability : (%) 0.0 0.0 97.66 97.99 0.0 98.99 Planned Outage Hours (HRS) 358.000 358.000 344.000 1,060.000 0.0 1,060.000 Maintenance Outage Hours: (HRS) 0.0 0.0 0.0 0.0 0.0 0.0 Forced Outage Hours: (HRS) 0.0 0.0 0.0 0.0 0.0 0.0 Equivalent Derate Hours: (HRS) 0.00 0.00 55.15 32.14 0 32.14 Reserve Shutdown Hours: (HRS) 2,586.77 2,583.834 2,326.269 7,496.873 2,937.651 10,434.524 HW Boiler Gas Usage: (MMBTU) 0 0.00 Fuel Oil Inventory (#2 Fuel Oil) Monthly Monthly Fuel Monthly FY15-16 Fuel FY15-16 Starting Ending Monthly Inventory Starting Purchase Inventory Inventory Inventory Purchase Change Inventory FYTD Change McKee Run 697,950 828,375 126,038 130,425 739,369 126,038 89,006 Van Sant 180,011 222,992 44,971 42,981 180,770 44,971 42,222 Van Sant Lifetime through October 2015 Actual Starts Factored Starts Fired Hours Van Sant 1,404 2392.75 4403.40 Since HGP–2004 275 725.05 1019.82 November 19, 2015 Page 20

Monthly Management Committee Update October 2015 3.1 Team Report: The Operations staff continues to support maintenance activities during the planned outage by serving as Confined Space Attendants for confined space areas as well as other support tasks. The Operations staff has also supported the outage by performing various LO/TO tasks needed to test or place equipment in or out or service. Operations personnel continue to support maintenance by working on Preventative Maintenance (PM) work orders and other work orders that they have the skills to successfully complete the task. The Operations Department continues to utilize the Day Shift Workers in both the Operations and Maintenance areas to assist with maintenance of the plant. 4.0 Maintenance During the month of October, the Plant Maintenance staff continued addressing the backlog of work orders and the preventative and new work orders received during the month. Back logged Work Orders are work orders that have been open for greater than thirty days. There were 88 new work orders issued with 82 work orders being completed, and 31 of the back logged work orders completed during the month. There were 2 new Safety Work Orders entered into the plant’s Computerized Maintenance Management System (MP2) during the month of which 2 were completed. The table below summarizes the monthly work order activities based on MP2 records and will continue to improve with time. This table gives a representation of identified outstanding work; Preventative Maintenance tasks completion and remaining corrective work orders and back logged work orders that require attention. City of Dover – McKee Run Work Order Statistics WO Starting Recv’d Total Comp Comp Total Ending OPEN Type backlog WO WO WO Rcvd Comp Bcklog WO’s ADM 13 10 23 0 3 3 13 20 CM 55 11 66 16 8 24 39 42 McKee Run EW 5 2 7 0 2 2 5 5 PM 21 38 59 8 27 35 13 24 PR 1 0 1 0 0 0 0 1 SW 3 2 5 2 1 3 1 2 Site Totals 100 60 167 28 41 67 71 94 City of Dover – Van Sant Work Order Statistics WO Starting Recv’d Total Comp Comp Total Ending OPEN Type backlog WO WO WO Rcvd Comp Bcklog WO’s ADM 3 0 3 0 0 0 3 3 Van Sant CM 3 3 6 0 3 3 3 3 PM 3 5 8 2 5 7 1 1 PR 0 0 0 0 0 0 0 0 SW 0 0 0 0 0 0 0 0 Site Totals 13 9 8 17 2 9 11 7 November 19, 2015 Page 21

Monthly Management Committee Update October 2015 Notable activities during the month include: During the fall outage on Units 1, 2 & 3 the boiler inspector from XL Insurance inspected the boiler for the yearly State of Delaware regulations. There were no issues with the boiler inspections. The inspector started the all of the boiler are in good shape. During the outage this fall the boiler safety and Units 1, 2 & 3 were removed by East Coast Valve Company and taken back to their facility and inspected and tested. There were no major issues with the safety valves. The safety valves were re-installed and the units were returned to normal operation. During the fall outage Unit 3 3A ID fan motor was removed and sent to DEMCO motor shop to have the cooling blades replaced. The cooling blades were the cause of 3B FD motor failure. The motor cooling blades were changed, the motor bearing reworked and the windings dipped and baked. The motor was re-installed and tested for correct operation. The motor ran well. The bearing temperatures ran between 98°F-114°F. Before the motor was sent out to rework the bearing temperatures reached well over 170°F. During a heavy rain event one of the roof drains was discovered to be leaking. This leak was directly over an electrical light panel on the turbine deck. A tent was fabricated over the electrical panel to divert the rain water to a drain below the turbine deck. The maintenance staff replaced the old rusty pipe and replaced it with ABS piping and fittings. They also cleaned two clogs in the line. Once this work was completed the line was tested and there were no leaks and the water flowed out to the drain with no issues. This was major safety concern to the facility due to the fact the rain water was dripping on the electrical panel. The maintenance crew fabricated roof vent covers for the turbine roof exhaust fan vents. By covering these vents this will allow the heat in the build not escape out these roof vents. This will help immensely in keep heat in the building this winter. 5.0 Capital Improvement Projects (CIP) This month’s report still includes all of the CIP’s that are shown as “open” in HTE and the planned budgeted CIP’s for the current budget year 2015/2016 with the status to date for the project. 2014/2015 CIP Status – Remaining Follow-up Project Description Update Number Progress: Project is complete. EG1212 Unit 3 Turbine Repairs Schedule: Project is complete. McKee Run HEP Pipe Progress: Work is complete and final report has been received. EG1406 Repairs Schedule: Project is complete. Progress: EG1504 Unit#3 Boiler System Repairs Schedule: November 19, 2015 Page 22

Monthly Management Committee Update October 2015 2015/2016 CIP Status Project Description Update Number Progress: Project on Hold. Schedule: Project is on Hold until next year when RFP process will EG1407 Metering System Upgrades begin again. Project would be slated to be completed once Units 1 and 2 are decommissioned. McKee Run / Van Sant Safety Progress: EG1408 Schedule: & Compliance McKee Run / Van Sant Progress: Selecting equipment for spring painting work EG1413 Structural Preservation Schedule: Paint some equipment/structures once weather warms. Progress: Final stack emissions testing data submitted to DNREC for revised emissions limits. EG1416 VanSant Capacity Increase Schedule: Purchase system spare parts for inventory. Erect protective shelter at the water skid. Progress: Failed boiler water wall tube samples sent out for EG1504 Unit#3 Boiler System Repairs metallurgical analysis to Riley Power. Schedule: Expect analysis results by February 2016. Van Sant Station Component Progress: Project on Hold. EG1505 Schedule: Funding was moved to support other CIPs. Replacement Progress: Updated Drawings received and final work to be completed McKee Run / Van Sant Safety EG1506 with a balance of $18K. Improvements Schedule: Project was requested to be carried over into new FY. McKee Run Units #1-#2 Progress: Funding removed to support other CIPs. EG1507 Component Replacement Schedule: Once U1&U2 de-commissioned reevaluate meter work. Progress: Project on Hold, some funds were used to support McKee Run/VanSant transformer repair costs to preserve station reliability. EG1508 Schedule: Planning on selected spring projects. Note this project has Structural Preservation been replaced by EG1611 for FY 16-17. McKee Run Building Progress: Reviewing space heater work and sealing of structure. EG1601 Schedule: Fall work to preclude winter weather/temperatures. Equipment Replacement McKee Run Unit #3 Boiler Progress: Unit #3 Boiler Tube Repair EG1604 Systems Schedule: Initial repairs completed by Bremco, Inc. McKee Run Unit #3 Auxiliary Progress: Unit #3A and #3B ID Fan Repairs EG1607 Equipment Replacement Schedule: Work on both motors completed. Progress: Consulting with other NAES plants and ESS to determine McKee Run / Van Sant CEMS EG1608 best equipment approach for upgrade. Upgrades Schedule: TBD Van Sant Station Component Progress: Replacement gas skid valves received. EG1609 Replacement Schedule: Investigate need to replace fuel flow divider. McKee Run / Van Sant Safety Progress: EG1610 Improvements Schedule: Progress: Some funds were used to support transformer repair cost McKee Run / Van Sant EG1611 to preserve station integrity and reliability. (T&D Department) Structural Preservation Schedule: November 19, 2015 Page 23

Monthly Management Committee Update October 2015 Project Description Update Number Progress: Work awarded to Universal Acoustics and Emissions Van Sant Exhaust Plenum Technology. EG1612 Replacement Schedule: Materials invoice processed for payment. Expect delivery in mid-February 2016 for beginning of installation on March 1, 2016. McKee Run Unit #3 Boiler Progress: Inspection completed in 2012. EG1613 Stack Repairs Schedule: Develop bid package to be sent for spring 2016 work. 6.0 General Plant Information On October 9, a celebration lunch was held for Richard Newman, Instrument Technician and Electrician for McKee Run since 1992. Staff was able to show their appreciation for Rich’s years of dedication and teamwork. We would also like to congratulate Sarah Maher, Administrative Assistant, and her new husband, Mike Best, on their wedding held on October 3. Sarah is now known as Mrs. Best, and we all wish her and her husband the best for their future. 7.0 Training Jack Coleman with OES-NA will be on site November 3rd through the 5th for training on preparation for the PJM Generation System Operators exam. Most of the class will consist of the new operators that have been hired over the last six months. The class will go over emergency operations, system restoration, and all phases of system operator requirements. Mr. Coleman used to teach this very same class at PJM about ten years ago so he is very knowledgeable. Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. The monthly safety topic was on “Compressed Air Hose Safety”, an air hose can be very useful but they can be dangerous as well, keep air hoses off the floor where it is a tripping hazard, Keep sharp items rubbing against the hose, don’t pull on a hose trying to free from being caught or snagged on a piece of equipment. Make sure hoses are properly connected and seated before use. November 19, 2015 Page 24

Monthly Management Committee Update October 2015 8.0 Upcoming Events A forecast of general event dates for the power plant projects, outages and various agency reporting dates are listed below. Calendar of Upcoming Events Date NOx Ozone Season Started May 1, 2015 PJM Winter Capacity Test Period TBD NOx Ozone Season Ends October 30, 2015 Unit 11 Spring Outage Schedule TBD (March 2016?) Winter Capacity Period December 1, 2015 – February 28, 2016 2015 Title V Annual Certifications Due January 31, 2016 RGGI-COATS True Up March 1, 2016 Water Allocation Report January 31, 2016 November 19, 2015 Page 25

Monthly Management Committee Update October 2015 IV. APPENDIX: PJM INVOICE REPORT Monthly Billing Statement - CSV and NAME: XML CUSTOMER ACCOUNT: City of Dover, Delaware CUSTOMER CODE: DOVDE CUSTOMER ID: 76.000000 FINAL BILLING STATEMEN T ISSUED: 11/6/2015 9:28 BILLING PERIOD START DATE: 10/1/2015 BILLING PERIOD END DATE: 10/31/2015 INVOICE NUMBER: 2015103100076.000000 INVOICE DUE DATE: 11/13/2015 12:00 SOURCE BILLING CHARGES ADJ BILLING LINE ITEM NAME PERIOD START AMOUNT ($) Network Integration 1100.000000 Transmission Service 449639.810000 1108.000000 Transmission Enhancement 70050.530000 Firm Point-to-Point 1130.000000 Transmission Service 0.000000 Non-Firm Point-to-Point 1140.000000 Transmission Service 0.000000 Day-ahead Spot Market 1200.000000 Energy 426408.960000 1205.000000 Balancing Spot Market Energy -60042.520000 Day-ahead Transmission 1210.000000 Congestion -290139.660000 Balancing Transmission 1215.000000 Congestion 15026.620000 Day-ahead Transmission 1220.000000 Losses 2384.120000 Balancing Transmission 1225.000000 Losses 122.170000 1230.000000 Inadvertent Interchange -62.290000 Day-Ahead Load Response 1242.000000 Charge Allocation 103.820000 Real-Time Load Response 1243.000000 Charge Allocation 360.250000 1250.000000 Meter Error Correction -3966.240000 November 19, 2015 Page 26

Monthly Management Committee Update October 2015 PJM Scheduling, System Control and Dispatch Service - 1301.000000 Control Area Administration 9351.280000 PJM Scheduling, System Control and Dispatch Service - 1302.000000 FTR Administration 42.020000 PJM Scheduling, System Control and Dispatch Service - 1303.000000 Market Support 2149.250000 PJM Scheduling, System Control and Dispatch Service - Regulation Market 1304.000000 Administration 88.260000 PJM Scheduling, System Control and Dispatch Service - Capacity Resource/Obligation 1305.000000 Mgmt. 936.820000 PJM Scheduling, System Control and Dispatch Service - Advanced Second Control 1306.000000 Center 1308.380000 PJM Scheduling, System Control and Dispatch Service - 1307.000000 Market Support Offset -215.540000 PJM Scheduling, System Control and Dispatch Service Refund - Control Area 1308.000000 Administration -60.800000 PJM Scheduling, System Control and Dispatch Service 1310.000000 Refund - Market Support -11.400000 PJM Scheduling, System Control and Dispatch Service Refund - Regulation Market 1311.000000 Administration -0.930000 PJM Scheduling, System Control and Dispatch Service Refund - Capacity 1312.000000 Resource/Obligation Mgmt. -5.270000 1313.000000 PJM Settlement, Inc. 215.540000 Market Monitoring Unit (MMU) 1314.000000 Funding 221.580000 1315.000000 FERC Annual Recovery 3702.940000 Organization of PJM States, 1316.000000 Inc. (OPSI) Funding 38.100000 North American Electric 1317.000000 Reliability Corporation (NERC) 652.180000 Reliability First Corporation 1318.000000 (RFC) 1061.140000 Transmission Owner Scheduling, System Control 1320.000000 and Dispatch Service 4106.400000 Reactive Supply and Voltage Control from Generation and 1330.000000 Other Sources Service 36129.040000 November 19, 2015 Page 27

Monthly Management Committee Update October 2015 Regulation and Frequency 1340.000000 Response Service 10490.760000 1360.000000 Synchronized Reserve 8984.770000 1362.000000 Non-Synchronized Reserve 1586.900000 Day-ahead Scheduling 1365.000000 Reserve 881.780000 1370.000000 Day-ahead Operating Reserve 3058.080000 1375.000000 Balancing Operating Reserve 2701.230000 Balancing Operating Reserve 1376.000000 for Load Response 1.230000 1378.000000 Reactive Services 14936.470000 1380.000000 Black Start Service 3392.420000 Load Reconciliation for Spot 1400.000000 Market Energy 894.570000 Load Reconciliation for 1410.000000 Transmission Congestion -315.090000 Load Reconciliation for 1420.000000 Transmission Losses 14.420000 Load Reconciliation for 1430.000000 Inadvertent Interchange 0.130000 Load Reconciliation for PJM Scheduling, System Control 1440.000000 and Dispatch Service 4.510000 Load Reconciliation for Schedule 9-6 - Advanced 1442.000000 Second Control Center 0.460000 Load Reconciliation for Market 1444.000000 Monitoring Unit (MMU) Funding 0.080000 Load Reconciliation for FERC 1445.000000 Annual Recovery 1.460000 Load Reconciliation for Organization of PJM States, 1446.000000 Inc. (OPSI) Funding 0.020000 Load Reconciliation for North American Electric Reliability 1447.000000 Corporation (NERC) 0.260000 Load Reconciliation for Reliability First Corporation 1448.000000 (RFC) 0.420000 Load Reconciliation for Transmission Owner Scheduling, System Control 1450.000000 and Dispatch Service 1.620000 Load Reconciliation for Regulation and Frequency 1460.000000 Response Service 4.790000 Load Reconciliation for 1470.000000 Synchronized Reserve 5.920000 Load Reconciliation for Non- 1472.000000 Synchronized Reserve 0.590000 Load Reconciliation for Day- 1475.000000 ahead Scheduling Reserve -0.090000 Load Reconciliation for 1478.000000 Balancing Operating Reserve 0.400000 November 19, 2015 Page 28

Monthly Management Committee Update October 2015 Load Reconciliation for 1490.000000 Reactive Services 0.020000 Financial Transmission Rights 1500.000000 Auction -8708.830000 1600.000000 RPM Auction 6324.930000 1610.000000 Locational Reliability 904154.060000 Generation Deactivation 1932.000000 Refund -515.950000 1250.000000 A Meter Error Correction 9/1/2015 -7.300000 Regulation and Frequency 1340.000000 A Response Service 8/1/2015 0.340000 1360.000000 A Synchronized Reserve 9/1/2015 30.190000 Day-ahead Scheduling 1365.000000 A Reserve 7/1/2015 16.390000 Day-ahead Scheduling 1365.000000 A Reserve 8/1/2015 -19.760000 Day-ahead Scheduling 1365.000000 A Reserve 9/1/2015 0.430000 1375.000000 A Balancing Operating Reserve 3/1/2015 5.160000 1375.000000 A Balancing Operating Reserve 5/1/2015 0.200000 1375.000000 A Balancing Operating Reserve 7/1/2015 3.070000 1375.000000 A Balancing Operating Reserve 8/1/2015 152.710000 1375.000000 A Balancing Operating Reserve 9/1/2015 41.040000 1380.000000 A Black Start Service 8/1/2015 205.620000 1380.000000 A Black Start Service 9/1/2015 266.920000 Michigan - Ontario Interface 1911.000000 A Phase Angle Regulators 9/1/2015 194.900000 1618386.81000 Total Charges 0 SOURCE BILLING CREDITS ADJ BILLING LINE ITEM NAME PERIOD START AMOUNT ($) Network Integration 2100.000000 Transmission Service 0.000000 2108.000000 Transmission Enhancement 55113.410000 Firm Point-to-Point 2130.000000 Transmission Service 0.000000 Non-Firm Point-to-Point 2140.000000 Transmission Service 706.080000 2210.000000 Transmission Congestion -102627.710000 2220.000000 Transmission Losses 16078.820000 Transmission Owner Scheduling, System Control 2320.000000 and Dispatch Service 0.000000 Reactive Supply and Voltage Control from Generation and 2330.000000 Other Sources Service 29467.580000 Regulation and Frequency 2340.000000 Response Service 0.000000 2360.000000 Synchronized Reserve 0.000000 Day-ahead Scheduling 2365.000000 Reserve 0.000000 November 19, 2015 Page 29

Monthly Management Committee Update October 2015 2370.000000 Day-ahead Operating Reserve 950.710000 2375.000000 Balancing Operating Reserve 1444.800000 2380.000000 Black Start Service 0.000000 Load Reconciliation for 2420.000000 Transmission Losses 7.570000 2510.000000 Auction Revenue Rights 76153.980000 2600.000000 RPM Auction 908470.500000 2630.000000 Capacity Transfer Rights 2192.010000 Incremental Capacity Transfer 2640.000000 Rights 353.090000 2661.000000 Capacity Resource Deficiency 6614.340000 Non-Firm Point-to-Point 2140.000000 A Transmission Service 9/1/2015 15.570000 2210.000000 A Transmission Congestion 9/1/2015 0.000000 Total Credits 994940.750000 Monthly Billing Net Total 623446.060000 Previous Weekly Billing Net Total 491986.270000 Total Due / Receivable $131,459.79 End of Report November 19, 2015 Page 30

Monthly Management Committee Update November 2015 Prepared By: Arline Holloway Client Services Manager Phone: 904-360-1347 Email: aholloway@teainc.org Date: December 17, 2015 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356.3900  Toll-Free: 800.423.4800

Monthly Management Committee Update November 2015 Table of Contents I. Executive Summary 1 Power Supply Summary 1 Supply Source Summary 2 Supply Variance 2 Generation Summary 3 Emissions Summary 5 Risk Management Summary 9 II. Budget Report 10 III. Operations Management 13 IV. Appendix: PJM Invoice 24 December 17, 2015 Page ii

Monthly Management Committee Update November 2015 I. EXECUTIVE SUMMARY POWER SUPPLY SUMMARY Power Supply Costs FY2015-16 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Budget Actual Overall Power Supply costs were $732,802 below budget predominantly driven by lower PJM-Energy, Congestion and Losses and lower Hedge Energy costs. Dover’s budgeted cost for all power supply (capacity AND energy) was $70.64/MWh. The actual cost of all power supply (capacity AND energy) was $62.56/MWh in a positive budget variance of $8.08. The actual cost of energy alone was $36.10/MWh as opposed to a budgeted energy cost of $42.26. Dover’s total load was 54,678 MWh versus a forecasted load of 58,800 MWh. Hedge purchases totaled 40,530 MWh, which was 74% of the actual load. The budgeted hedge purchase totaled 44,720 MWh, which was 76% of the budgeted load. Dover’s power purchases from hedge transactions totaled $1,635,046. Purchases from PJM (energy and fees) totaled $1,569,465. This number includes Locational Reliability charge of $874,987 and DA spot market energy charges of $374,974. Dover’s planned energy purchase from the SunPark solar installation was 912 MWhs. Dover’s actual energy purchase from the SunPark installation was 790 MWh. December 17, 2015 Page 1

Monthly Management Committee Update November 2015 Supply Source Summary Supply Variance December 17, 2015 Page 2

Monthly Management Committee Update November 2015 GENERATION SUMMARY Generation Revenue FY2015-16 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- Jul-15 Nov-15 Jun-16 Aug-15 Sep-15 Oct-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 $(100,000) Budget Actual Net Generation Revenue for the month of November was $466,056 versus a budget of $454,000. The favorable budget variance was attributed to Non-Production Revenue of $917,401. December 17, 2015 Page 3

Monthly Management Committee Update November 2015 Generation Breakdown City of Dover Monthly Wholesale Generation Formula November 2015 Net Generation 289.19 D Production Margin PJM - Generation Economic and Reliability Dispatch $ 88,861.28 A Natural Gas & Oil Consumption Purchases for Generation $ - Natural Gas Transport $ - Eastern Shore Cashout $ - Oil Consumption $ (62,965.90) Subtotal: Natural Gas & Oil Consumption $ (62,965.90) B Gross Production Margin $ 25,895.38 C = (A + B) $/MWh Generation Production Gross Margin $ 89.54 E = (C/D) PJM - Capacity Generation Capacity Credit $ 873,044.10 Reactive Supply and Transmission Losses $ 44,357.13 Subtotal: PJM - Capacity $ 917,401.23 F All in Generation Margin All in Generation Margin Total $ 943,296.61 (G = C + F) December 17, 2015 Page 4

Monthly Management Committee Update November 2015 EMISSIONS SUMMARY Emissions Allowance and Solar Renewable Energy Summary through November 30, 2015 The reinstated Cross-State Air Pollution Rule (CSAPR) replaced the Clean Air Interstate Rule (CAIR) beginning January 1, 2015. The State of Delaware was included in the CAIR footprint but is not included in the CSAPR footprint. CAIR allowances cannot be used for CSAPR compliance, so Dover’s CAIR allowances essentially became valueless when CSAPR was reinstated. The separate Clean Air Act acid rain deposition control program (CAA Title IV), which governs the SO2 national allowance trading program, remains in effect for Dover. Beginning with the January 2015 report, TEA no longer includes a CAIR summary. It will continue to report on Dover’s Clean Air Act Title IV SO2 allowances. Market liquidity for Title IV SO2 allowances is very low, with few transactions occurring. The following table shows estimated values for Dover’s banked allowances, based on a market price assessment published by SNL Energy. Market Value for Clean Air Act Title IV Allowances 1 Commodity $/Ton Tons Market Value SO2 Allowances – Title IV $0.56 15,018 $8,410 Total $8,410 Regional Greenhouse Gas Initiative The State of Delaware is a participant in the Regional Greenhouse Gas Initiative (RGGI). The City of Dover must comply with RGGI by surrendering carbon dioxide (CO2) allowances pursuant to the State of Delaware’s laws (Title 7, Chapter 60, Sub-Title II-A). Dover had more than a sufficient number of RGGI allowances allocated to it to cover its requirements through the first compliance period (calendar years 2009-2011) and second compliance period (2012-2014). Any unused allowances are carried over (“banked”) for subsequent years. The table below includes Dover’s historical activities and includes projections through 2020. Two projections are presented: (1) future annual emissions based on the average for 2009-2014 and (2) future annual emissions based on 2010 actual CO2 emissions, which was the highest emissions year between 2009 and 2014. 1 October 20, 2015 Daily Power Report by SNL Energy December 17, 2015 Page 5

Monthly Management Committee Update November 2015 Dover, DE RGGI Allowance History and Forecast -November, 2015 CO2 Tons EOY Historical CO2 Tons CO2 Tons Projected EOY Compliance CO2 Allowances Allocated CO2 Projected EOY Emitted - Allowance Emitted - Proj. Emitted - Proj. Balance Year (CY) Purchased Allowances Balance (High) Historical Balance (Avg) (High) (Average) 2009 62,184 5,796 56,388 2010 49,747 32,971 73,164 2011 37,311 17,763 92,712 2012 27,983 15,957 104,738 2013 24,818 10,213 119,343 2014 1,000 N/A 25,426 94,917 94,917 94,917 2015 14,000 N/A 17,371 91,546 18,021 33,000 90,896 75,917 2016 N/A 18,021 33,000 72,875 42,917 2017 N/A 18,021 33,000 54,854 9,917 2018 N/A 18,021 33,000 36,833 -23,083 2019 N/A 18,021 33,000 18,812 -56,083 2020 N/A 18,021 33,000 791 -89,083 NOTE: 2015 Values subject to verification; 2015 emissions include 5,490 of excess emissions surrender Dover RGGI Allowance History and Projection November 30, 2015 150,000 100,000 Tons of CO2 50,000 0 -50,000 -100,000 Historical CO2 Emissions Projected CO2 Emissions - Avg CO2 Tons Emitted - Proj. (High) EOY Historical Allowance Balance Projected EOY Balance (Average) Projected EOY Balance (High) December 17, 2015 Page 6

Monthly Management Committee Update November 2015 The table and chart indicate that Dover could run out of banked allowances as early as the end of 2017 under the high emissions scenario and by the end of 2020 under the average scenario. Therefore, Dover has recently initiated a program to participate in RGGI’s quarterly auctions to ensure it has adequate allowances in the future. In anticipation of needing additional RGGI allowances in the future, Dover has participated in the last four auctions and plans to continue to participate as required. The table below shows details for Dover’s allowance purchases for each of these previous auctions. Dover’s RGGI Allowance Purchase History RGGI Auction Auction Clearing Quantity Of Number Auction Date Price ($/Ton) Allowances Awarded Total Cost 26 Dec 3, 2014 $5.21 1,000 $ 5,210 27 Mar 11, 2015 $5.41 6,000 32,460 28 June 3, 2015 $5.50 4,000 22,000 29 Sept 3, 2015 $6.02 4,000 24,080 30 Dec 2, 2015 $7.50 0 0 Totals 15,000 $83,750 Dover was unable to participate in Auction 30 due to an administrative error. Even if it had participated, the auction cleared at a significantly higher price than the highest tier bid price which was approved by Dover at last month’s RMC meeting. The RGGI spot market prices increased rapidly during the last two weeks of November, as can be seen on the chart from SNL below: December 17, 2015 Page 7

Monthly Management Committee Update November 2015 The next RGGI auction will be held on March 9, 2015. The Cost Containment Reserve will be 10 Million tons with a CCR price of $8.00/ton, so may be reasonable to expect that the next auction will clear in the $7.50 to $8.25 range (assuming all CCR allowances are used). TEA will provide recommendations for Auction 31 during the February 2016 Risk Management Committee (RMC) meeting. Based on the December 9, 2015 ICE price for the January 2016 futures price ($7.53/ton), the estimated market value of Dover’s existing 91,546 2 ton RGGI allowance bank is $689,341. On November 17, 2015 RGGI held a stakeholder meeting to prepare for the 2016 RGGI program review. Discussion topics included EPA’s Clean Power Plan, potential changes to the RGGI allowance cap post 2020 and a discussion about RGGI’s Flexibility Mechanisms. A Delaware specific stakeholder “listening session” was held on November 20, 2015, with a focus on EPA’s Clean Power Plan and how it relates to the RGGI program. Additionally, on December 8, RGGI made a number of comments, which were filed after the November 17 meeting. The next stakeholder meeting has not yet been scheduled but is expected sometime during the spring of 2016. TEA will continue to monitor the 2016 program review as it evolves. Renewable Energy Certificates Dover owns two photovoltaic systems totaling 15 kW, consisting of one 5 kW unit at the Utilities Administration Building and two 5 kW units at the McKee Run generating station. Dover also receives solar energy produced by the 10 MW Dover Sun Park, which is owned by White Oak Solar Energy, LLC. In addition to all of the physical energy produced by the Sun Park, Dover receives 15% of Sun Park’s Solar Renewable Energy Credits (SRECs). Dover participates in the Delaware Municipal Electric Renewable Portfolio Standard (DMERPS) for compliance with the State of Delaware’s RPS laws applicable to municipal utilities. The first compliance period under DMERPS was for the 12 months ending May 2014, and the second compliance period was for the 12 months ending May 2015. Last month, it was reported that SRECs from the White Oak Solar Energy Center are eligible for a 10% adder because the facility was constructed using a Delaware labor force. TEA, DEMEC, and Dover staff have reconciled this increase in SRECs. PJM’s GATs system does not include a mechanism to retroactively record the 10% labor bonus SRECs. Therefore, DEMEC and TEA have had to account for these bonus SRECs outside PJM’s GATs. The revision indicated that Dover over-complied in the first compliance period by 290.2 SRECs. These were used to off-set a portion of the second control period’s requirement to surrender 3,435 SRECs, resulting in a net surrender for the second control period of 3,144.8 SRECs. Through the end of generation month October 2015, Dover had accumulated a total of 6,651 SRECs from these renewable energy resources. This total includes SRECs reported in PJM’s GATs account. Bonus allowances for Sun Park labor and net of 2,941 SREC transferred to DEMEC for surrender on October 3, 2014 for the first compliance period and 2,861 SRECs and 574 bonus SRECs for the second compliance period on November 9, 2015. 2 Subject to verification from RGGI COATS account. December 17, 2015 Page 8

Monthly Management Committee Update November 2015 Delaware periodically holds SRECs auctions; however, these auctions are for size tiers N1 – N3, E1 and E2. The Dover Sun Park is in the N4 tier for large-scale facilities. State-wide carve outs for Tier 4 has been fully subscribed, so there is not a market for tier T4 SRECs in Delaware. The nearest viable market for Dover’s SRECs is Pennsylvania. Daily settlement prices from Flett Exchange Environmental Services. The most recent settlement prices for Pennsylvania SRECs are in the following table: PJM-GATS Transferred to Balance 10% Bonus DEMEC for Net SREC SREC Vintage Market Before SRECs for 2014/15 Balance After (June 1 – May Clearing 2014/15 Sun Park Compliance Transfer and Market 3 31) Price Compliance Labor Bonus GATs Surrender Value 2011/2012 $ 0.00 0 290.2 290.2 0 $0 2012/2013 $ 0.00 2,173 215.7 215.7 2,173 0 $0 2013/2014 $10.00 2,701 268.0 68.1 688 2,212.8 22,129 2014/2015 $15.00 2,685 266.3 0 0 2,951.3 44,269 2015/2016 $15.00 1,353 134.2 0 0 1,487.2 22,308 Totals 8,907 1,173.5 574 2,861 6,651.3 $88,706 TEA continues to recommend to Dover to retain these allowances for compliance with its Renewable Portfolio Standard (RPS). Additionally, Dover will need to acquire additional SRECs resources in future years. It is apparent that Dover’s portion of SRECs produced by White Oak Solar Energy Center will not be sufficient in future years as the compliance requirements increase. DEMEC has indicated that it expects to have excess SRECs available for Dover’s compliance requirements. This and other alternatives will need to be evaluated in the near future. RISK MANAGEMENT SUMMARY Forward power prices in PJM have decreased from last month, except for 2019-2020. Blended Monthly Hedge Cost Change PY Ratio ($/MWh) ($/MWh) 2015-16 75% $42.03 ($0.54) 2016-17 59% $40.46 ($0.51) 2017-18 56% $40.05 ($0.36) 2018-19 49% $38.96 ($0.23) 2019-20 32% $36.48 $0.18 3 Note: Retroactive Bonus Allowances were not transferred within PJM’s GATs system but were used to off-set 2014/15 compliance obligation. December 17, 2015 Page 9

Monthly Management Committee Update November 2015 II. BUDGET REPORT Budget Actual Variance Nov-15 Nov-15 Gross Load 58,800 54,678 4,122 Power Supply Hedged Energy $1,803,100 $1,635,046 $168,054 PJM - Energy, Congestion & Losses $562,900 231440.88 $331,459 PJM - ARR, Transmission and Fees $650,000 471167.55 $178,832 Dover SUN Park Energy $118,700 $107,183 $11,517 Dover SUN Park RECs $25,800 $26,003 ($203) RECS (Solar and Non-Solar) $56,100 $0 $56,100 RGGI Credit Costs $0 $0 $0 Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $853,900 $866,857 ($12,957) Subtotal - Power Supply $4,153,500 $3,420,698 $732,802 Power Generation O&M Plant O&M $455,200 477240 ($22,040) Subtotal Generation O&M $455,200 477240 ($22,040) Power Generation Production Margin PJM - Economic and reliability dispatch $0 ($88,861) $88,861 Fuel Costs - Natural Gas $0 $0 $0 Fuel Costs - Oil $0 $62,966 ($62,966) Testing Costs $0 $0 $0 Subtotal Generation Production Margin $0 ($25,895) 25895.38 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($879,200) ($873,044) ($6,156) Emissions Allowance Sales $0 $0 $0 Reactive Supply - Gas ($30,000) ($44,357) $14,357 Subtotal - Non-Production Revenue ($909,200) ($917,401) $8,201 SubTotal - All Generation ($454,000) ($466,057) $12,057 Total - Utilities Cost $3,699,500 $2,954,641 $744,859 Unit Costs Total - Power Supply $70.64 $62.56 $8.08 Total - Power Generation ($7.72) ($8.52) $0.80 Final Cost of Service to City of Dover Ratepayers $62.92 $54.04 $8.88 December 17, 2015 Page 10

Monthly Management Committee Update November 2015 Variance Analysis  Power Supply • Dover consumed 4,122 MWh less than forecasted for the month. • Dover saw a favorable variance for budgeted Hedged Energy of $168,054. • Dover experienced a favorable variance for budgeted PJM - Energy, Congestion and Losses of $331,459 and a favorable variance for PJM ARR, Transmission and Fees of $178,832. • This resulted in a net power supply cost of $54.04/MWh, $8.88/MWh below budget. • The city realized a favorable variance of $732,802 for power supply vs. the monthly budget. • Dover Sun Park generated 122 MWhs less than forecasted.  Generation • Non Production Revenue had a favorable variance of $8,201. • Net Generation Revenue had a favorable variance of $12,057. December 17, 2015 Page 11

Monthly Management Committee Update November 2015 Budget Actual Variance YTD YTD Gross Load 330,200 328,761 1,439 Power Supply Hedged Energy $11,198,600 $10,835,104 $363,496 PJM - Energy, Congestion & Losses $3,303,200 1228212.96 $2,074,987 PJM - ARR, Transmission and Fees $3,382,500 2549011.26 $833,489 Dover SUN Park Energy $903,100 $993,835 ($90,735) Dover SUN Park RECs $176,000 $182,183 ($6,183) RECS (Solar and Non-Solar) $280,500 $0 $280,500 RGGI Credit Costs $43,800 $24,080 $19,720 Management Fees $415,000 $415,000 $0 PJM - Capacity UCAP Obligated Purchased $4,355,000 $4,404,432 ($49,432) Subtotal - Power Supply $24,057,700 $20,631,858 $3,425,842 Power Generation O&M Plant O&M $2,954,000 2406821 $547,179 Subtotal Generation O&M $2,954,000 2406821 $547,179 Power Generation Production Margin PJM - Economic and reliability dispatch ($569,400) ($664,214) $94,814 Fuel Costs - Natural Gas $389,200 $195,592 $193,608 Fuel Costs - Oil $0 $91,034 ($91,034) Testing Costs $0 $0 $0 Subtotal Generation Production Margin ($180,200) ($377,589) 197388.5807 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($4,483,900) ($3,889,531) ($594,369) Emissions Allowance Sales $0 $0 $0 Reactive Supply - Gas ($150,000) ($308,353) $158,353 Subtotal - Non-Production Revenue ($4,633,900) ($4,197,884) ($436,016) SubTotal - All Generation ($1,860,100) ($2,168,651) $308,551 Total - Utilities Cost $22,197,600 $18,463,207 $3,734,393 Unit Costs Total - Power Supply $72.86 $62.76 $10.10 Total - Power Generation ($5.63) ($6.60) $0.96 Final Cost of Service to City of Dover Ratepayers $67.22 $56.16 $11.06 December 17, 2015 Page 12

Monthly Management Committee Update November 2015 III. OPERATIONS MANAGEMENT Executive Summary During the month of November, there were no recordable accidents or lost time accidents. The facility has gone 228 days through November 30, 2015 without an OSHA Recordable Accident and has not had a Lost Time Accident since the January 12th, 2015 incident. PJM did not dispatch Unit 1, Unit 2 or Unit 3 during the month of November. Unit 11 was dispatched twice for the month of November for a total of 7.315 hours online. Monthly Budget Variance – The actual expenses attributable to O&M of the two sites for the month of November are $477,240 against a budgeted amount of $455,225 for an unfavorable variance of $22.015 or 4.84%. The variance was due to: a Personnel Expenses variance of $57,718 unfavorable due to 3 pay periods occurring in the month of November, only 2 were budgeted, Materials and Supplies variance was unfavorable $28,608 – due to accounting reversing the previous credit for the plant water & sewer account and plant chemicals were purchased in November originally forecast to be purchased in July and August. The Administrative Expense variance was favorable $63,771 due to timing of home office invoicing. The operator management fee and insurance costs were not included in the November expenses. Please note the yellow highlighted numbers on the Operation Tables on pages 6 and 7 are not correct because fuel oil analysis from those runs are not due back until December 17th or 18th. An updated final monthly report will be issued once the results of those fuel oil samples are made available. December 17, 2015 Page 13

Monthly Management Committee Update November 2015 NAES Corporation Dover, Delaware November 2015 Monthly Report Tyler Brown (Operator II Step I) was awarded his PJM shirt by Don Mordus (Plant Manager) for passing his PJM Certification Exam. December 17, 2015 Page 14

Monthly Management Committee Update November 2015 Table of Contents 1.0 Environmental, Health and Safety 2.0 Financials 3.0 Operations 4.0 Maintenance 5.0 Capital Improvement Projects (CIP 6.0 General Plant Information 7.0 Training 8.0 Upcoming Events 1.0 Environmental, Health and Safety During the month of November, there were no recordable accidents, lost time accidents or environmental incidents. The facility has gone 228 days through November 30, 2015 without an OSHA Recordable Accident or a Lost Time since the April 16, 2015 reportable accident. There were two Near Misses reported in November 2015 at McKee Run. While walking by the 4160 breakers on the #3 turbine deck, a I.C & E mechanic noticed that Ansul portable fire extinguisher #37 had disconnected hoses from the main CO2 tank with no volume regulators on either side of the portable fire extinguisher. Also the tires are badly under inflated and require immediate attention. This fire extinguisher was taken out of service until it can be repaired. A second Near Miss was reported when exhaust gases entered Fire Pump Room (FPR) from damaged exhaust system while the gasoline engine was started during weekend inspections. The carbon monoxide monitor was moved to another location but an operator did not inform any supervision. A new carbon monoxide monitor was immediately installed. All employees underwent CPR/First Aid and AED training and are now complete for 2015. During the month of November, there were no IWW discharges to the Kent County Public Works sewer system. The November Significant Industrial User (SIU) report was submitted to Kent County Public Works indicating no discharges occurred. McKee Run submitted a waiver of cyanide analysis to the Kent County Public Works division since cyanide was not detected in four (4) consecutive quarters. No response has been received by Kent County Public Works to date on a waiver determination. During the month of November, there were no sampling events at Outfall 001, 004, 005 and 006. The November DMR was submitted to DNREC indicating no discharge from Outfall 001, 004 and 005 for this month. A visual inspection form was completed prior to a discharge of accumulated storm water from Outfall 006 and submitted to DNREC for review. No NPDES exceedances have been identified. All non- contact cooling tower blowdown water is being discharged directly to the Kent County Department of Public Works under the facilities Industrial Wastewater Discharge Permit #18. VanSant received written confirmation from DNREC that VanSant passed the compliance evaluation during inspections on June 25th, 26th and 27th, 2015 without any conditional approvals. This indicates that VanSant was operating in compliance with the Title V permit at the time of the inspection. December 17, 2015 Page 15

Monthly Management Committee Update November 2015 McKee Run and VanSant received written confirmation from DNREC that both facilities passed the Full Compliance Audit on July 21, 2015 and the Semi Annual Compliance Certification Review without any conditional approvals. . This indicates that McKee Run and VanSant were operating in compliance with the Title V permit at the time of the inspection. December 17, 2015 Page 16

Monthly Management Committee Update November 2015 2.0 Financials Monthly and year to date financial results as compared with the approved power plant budget for the Generation Units are provided below. 2.1 Variance Analysis: The actual expenses for the month of November are $477,240 against a budgeted amount of $455,225 for an unfavorable variance of $22,015 or 4.84%. The variance was due to the following: • Personnel Expenses: An unfavorable monthly variance of $57,718 was due to (3) payroll periods being expensed vs. the (2) that were budgeted. This had been a carryover from the previous month. Note that a portion of this was offset by not having a full complement of employees for this time period. As a result, this impacted three (3) labor accounts – Straight Time, Overtime, and Labor Burdens. • Materials and Supplies Expenses: An unfavorable monthly variance of $28,608 was due to reversal of a credit in the water – sewer account and purchase of bulk chemicals that was previously budgeted in July and August. • Administrative Expenses: A favorable monthly variance of $63,771 was due primarily to the timing of home office consolidated invoices being processed for payment. The operator management fee and insurance costs were not included in November expenses. December 17, 2015 Page 17

Monthly Management Committee Update November 2015 3.0 Operations Unit Operations / Outages / Trips: Unit 11 was dispatched by PJM on November 23rd at 2100 due to a constraint on the Milford-Steele line the unit was cost-capped. The Unit tripped the first time on high vibration and on the second start on operator error. The unit ran for 2.199 hours. Unit 11 was dispatched by PJM on November 24th at 0428 due to a constraint on the Milford-Steele line the unit was cost-capped. The unit ran for 5.116 hours. Units 1, 2, and 3 were not dispatch in the month of November. December 17, 2015 Page 18

Monthly Management Committee Update November 2015 December 17, 2015 Page 19

Monthly Management Committee Update November 2015 3.1 Team Report: The Operations staff completed their CBT training through OES-NA. The training earns the operator CEH credits for every online course they complete and have to take a final test with a passing grade of 70% or higher. The courses range from transmission to generation training to some of NERC regulations. The training is up to a year and if all courses are completed you can earn up to 60 CEH credits. Operations personnel continue to support maintenance by working on Preventative Maintenance (PM) work orders and other work orders that they have the skills to successfully complete the task. The Operations Department continues to utilize the Day Shift Workers in both the Operations and Maintenance areas to assist with maintenance of the plant. 4.0 Maintenance During the month of November, the Plant Maintenance staff continued addressing the backlog of work orders and the preventative and new work orders received during the month. Back logged Work Orders are work orders that have been open for greater than thirty days. There were 44 new work orders issued with 48 work orders being completed, and 31 of the back logged work orders completed during the month. There were 5 new Safety Work Orders entered into the plant’s Computerized Maintenance Management System (MP2) during the month of which 3 were completed. The table below summarizes the monthly work order activities based on MP2 records and will continue to improve with time. This table gives a representation of identified outstanding work; Preventative Maintenance tasks completion and remaining corrective work orders and back logged work orders that require attention. December 17, 2015 Page 20

Monthly Management Committee Update November 2015 Notable activities during the month include: The Maintenance and IC&E staff completed an extensive winterization upgrade to the McKee Run Power Plant facility. This included sealing up outside louvers that were no longer in service. They sealed up pipe penetrations coming from the outside walls. Cover were fabricated and installed to cover the opening of the exhaust fan on the roof. All of the space heaters were checked for proper operation and repaired if needed. New heaters were installed on the drum level on Units 1 & 2 boilers. The winterization upgrade will ensure that the plant will stay warm during the cold winter months. The Maintenance and IC&E staff installed two new upgraded acid pumps in the DI at VanSant. The old pump were not preforming as they should have been. This was causing delays in the regeneration process which could cause a risk in generation. These pumps were installed to make the DI system a more reliable system. A safety walk around was completed by the compliance coordinator after a rain event. It was noticed that the wooden outfall steps were very slippery. A work order was issued to install some type of material that would have a gripping type surface on the steps to prevent a slipping hazard. The Maintenance staff installed an FRP material on the steps that has a non-skid surface fabricated into the material. The steps are now safe to walk down during and after rain events. The IC&E staff install the Christmas on the stack of Unit 3. This is a tradition of the facility and has been for many years. The community appreciates that we install the Christmas every year. We received several comments on the Christmas lights every year for the surrounding neighbors of the plant and citizens of the City of Dover. December 17, 2015 Page 21

Monthly Management Committee Update November 2015 5.0 Capital Improvement Projects (CIP) This month’s report for CIP project planned and budgeted for the current budget year 2015/2016 with the status to date for the project. 2015/2016 CIP Status December 17, 2015 Page 22

Monthly Management Committee Update November 2015 6.0 General Plant Information On November 17, 2015, Tyler Brown, Operator, passed his PJM examination. Tyler came to work with us in March and has since become a dependable and trusted employee in that short time. We applaud his hard work and determination in completing this challenge. Plant employees began their Annual Food Drive for the local Food Bank. Our goal is to collect at least 150 lbs. of food, to best last year’s donations of 135 lbs. Our drive will continue through December 11, at which time all donations will be turned over to the Food Bank. Interviews are ongoing for a Plant Engineer and an IC&E Technician for our staff. 7.0 Training Jack Coleman with OES-NA was on site November 3rd through the 5th for training on preparation for the PJM Generation System Operators exam. The class was made up of two supervisors, four operators, and plant manager. The class will go over emergency operations, system restoration, and all phases of system operator requirements to prepare the operators to take the PJM Generation exam. Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. The monthly safety topic was on “12 Safety Tips to Keep Your Holiday Safe”, No one plans for fires or injuries when planning for the holidays, but ignorance of safety standards and carelessness can lead to severe damage to the home or trips to the emergency room. 8.0 Upcoming Events A forecast of general event dates for the power plant projects, outages and various agency reporting dates are listed below. December 17, 2015 Page 23

Monthly Management Committee Update November 2015 IV. APPENDIX: PJM INVOICE Monthly Billing Statement - CSV and REPORT NAME: XML CUSTOMER ACCOUNT: City of Dover, Delaware CUSTOMER CODE: DOVDE CUSTOMER ID: 76.000000 FINAL BILLING STATEMENT ISSUED: 12/7/2015 9:21 BILLING PERIOD START DATE: 11/1/2015 BILLING PERIOD END DATE: 11/30/2015 INVOICE NUMBER: 2015113000076.000000 INVOICE DUE DATE: 12/11/2015 12:00 BILLING LINE ITEM SOURCE BILLING PERIOD CHARGES ADJ NAME START AMOUNT ($) Network Integration 1100.000000 Transmission Service 435135.300000 Transmission 1108.000000 Enhancement 70050.530000 Firm Point-to-Point 1130.000000 Transmission Service 0.000000 Non-Firm Point-to-Point 1140.000000 Transmission Service 0.000000 Day-ahead Spot Market 1200.000000 Energy 374974.400000 Balancing Spot Market 1205.000000 Energy -11380.990000 Day-ahead Transmission 1210.000000 Congestion -153257.650000 Balancing Transmission 1215.000000 Congestion -50982.860000 Day-ahead 1220.000000 Transmission Losses 19916.490000 Balancing Transmission 1225.000000 Losses 32.630000 1230.000000 Inadvertent Interchange 107.440000 December 17, 2015 Page 24

Monthly Management Committee Update November 2015 Day-Ahead Load Response Charge 1242.000000 Allocation 79.380000 Real-Time Load Response Charge 1243.000000 Allocation 216.110000 1250.000000 Meter Error Correction -3014.610000 PJM Scheduling, System Control and Dispatch Service - Control Area 1301.000000 Administration 9293.610000 PJM Scheduling, System Control and Dispatch Service - FTR 1302.000000 Administration 2.200000 PJM Scheduling, System Control and Dispatch Service - 1303.000000 Market Support 2145.490000 PJM Scheduling, System Control and Dispatch Service - Regulation Market 1304.000000 Administration 88.030000 PJM Scheduling, System Control and Dispatch Service - Capacity Resource/Obligation 1305.000000 Mgmt. 906.600000 PJM Scheduling, System Control and Dispatch Service - Advanced Second 1306.000000 Control Center 1205.730000 PJM Scheduling, System Control and Dispatch Service - 1307.000000 Market Support Offset -215.340000 PJM Scheduling, System Control and Dispatch Service Refund - Control Area 1308.000000 Administration -60.410000 PJM Scheduling, System Control and Dispatch Service Refund 1310.000000 - Market Support -11.370000 PJM Scheduling, System Control and Dispatch Service Refund - Regulation Market 1311.000000 Administration -0.900000 December 17, 2015 Page 25

Monthly Management Committee Update November 2015 PJM Scheduling, System Control and Dispatch Service Refund - Capacity Resource/Obligation 1312.000000 Mgmt. -5.100000 1313.000000 PJM Settlement, Inc. 215.340000 Market Monitoring Unit 1314.000000 (MMU) Funding 221.270000 1315.000000 FERC Annual Recovery 3680.080000 Organization of PJM States, Inc. (OPSI) 1316.000000 Funding 37.900000 North American Electric Reliability Corporation 1317.000000 (NERC) 648.160000 Reliability First 1318.000000 Corporation (RFC) 1054.600000 Transmission Owner Scheduling, System Control and Dispatch 1320.000000 Service 4081.070000 Reactive Supply and Voltage Control from Generation and Other 1330.000000 Sources Service 42343.240000 Regulation and Frequency Response 1340.000000 Service 9825.760000 1360.000000 Synchronized Reserve 3825.180000 Non-Synchronized 1362.000000 Reserve 911.320000 Day-ahead Scheduling 1365.000000 Reserve 700.720000 Day-ahead Operating 1370.000000 Reserve 3854.570000 Balancing Operating 1375.000000 Reserve 1313.080000 Balancing Operating Reserve for Load 1376.000000 Response 4.320000 Synchronous 1377.000000 Condensing 16.860000 1378.000000 Reactive Services 4144.690000 1380.000000 Black Start Service 3395.460000 Load Reconciliation for 1400.000000 Spot Market Energy -17790.450000 Load Reconciliation for Transmission 1410.000000 Congestion -4693.050000 Load Reconciliation for 1420.000000 Transmission Losses -1244.430000 Load Reconciliation for 1430.000000 Inadvertent Interchange -4.140000 December 17, 2015 Page 26

Monthly Management Committee Update November 2015 Load Reconciliation for PJM Scheduling, System Control and 1440.000000 Dispatch Service 47.090000 Load Reconciliation for Schedule 9-6 - Advanced Second 1442.000000 Control Center 5.400000 Load Reconciliation for Market Monitoring Unit 1444.000000 (MMU) Funding 0.910000 Load Reconciliation for 1445.000000 FERC Annual Recovery 15.280000 Load Reconciliation for Organization of PJM States, Inc. (OPSI) 1446.000000 Funding 0.160000 Load Reconciliation for North American Electric Reliability Corporation 1447.000000 (NERC) 2.690000 Load Reconciliation for Reliability First 1448.000000 Corporation (RFC) 4.380000 Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch 1450.000000 Service 16.940000 Load Reconciliation for Regulation and Frequency Response 1460.000000 Service -74.140000 Load Reconciliation for 1470.000000 Synchronized Reserve -69.330000 Load Reconciliation for Non-Synchronized 1472.000000 Reserve -10.370000 Load Reconciliation for Day-ahead Scheduling 1475.000000 Reserve -804.560000 Load Reconciliation for Balancing Operating 1478.000000 Reserve 35.540000 Load Reconciliation for 1490.000000 Reactive Services 151.950000 1600.000000 RPM Auction 6120.900000 1610.000000 Locational Reliability 874987.800000 Generation Deactivation 1932.000000 Refund -502.010000 PJM Annual 1995.000000 Membership Fee 5000.000000 Day-Ahead Load Response Charge 1242.000000 A Allocation 10/1/2015 -0.010000 December 17, 2015 Page 27

Monthly Management Committee Update November 2015 Real-Time Load Response Charge 1243.000000 A Allocation 10/1/2015 -0.010000 1250.000000 A Meter Error Correction 10/1/2015 -83.350000 1360.000000 A Synchronized Reserve 9/1/2015 -0.110000 1360.000000 A Synchronized Reserve 10/1/2015 -0.060000 Day-ahead Scheduling 1365.000000 A Reserve 9/1/2015 -3094.990000 Day-ahead Scheduling 1365.000000 A Reserve 10/1/2015 0.050000 Day-ahead Operating 1370.000000 A Reserve 7/1/2015 125.300000 Balancing Operating 1375.000000 A Reserve 7/1/2015 -0.560000 Balancing Operating 1375.000000 A Reserve 8/1/2015 0.320000 Balancing Operating 1375.000000 A Reserve 9/1/2015 306.190000 Balancing Operating 1375.000000 A Reserve 10/1/2015 -33.810000 Balancing Operating Reserve for Load 1376.000000 A Response 10/1/2015 -0.010000 1378.000000 A Reactive Services 9/1/2015 -33.820000 1378.000000 A Reactive Services 10/1/2015 -260.800000 Michigan - Ontario Interface Phase Angle 1911.000000 A Regulators 10/1/2015 183.860000 Total Charges 1633803.080000 BILLING LINE ITEM SOURCE BILLING PERIOD CREDITS ADJ NAME START AMOUNT ($) Network Integration 2100.000000 Transmission Service 0.000000 Transmission 2108.000000 Enhancement 55113.410000 Firm Point-to-Point 2130.000000 Transmission Service 0.000000 Non-Firm Point-to-Point 2140.000000 Transmission Service 689.930000 Transmission 2210.000000 Congestion 0.000000 2220.000000 Transmission Losses 14888.110000 Transmission Owner Scheduling, System Control and Dispatch 2320.000000 Service 0.000000 Reactive Supply and Voltage Control from Generation and Other 2330.000000 Sources Service 29467.580000 December 17, 2015 Page 28

Monthly Management Committee Update November 2015 Regulation and Frequency Response 2340.000000 Service 0.000000 2360.000000 Synchronized Reserve 0.000000 Day-ahead Scheduling 2365.000000 Reserve 0.000000 Day-ahead Operating 2370.000000 Reserve 0.000000 Balancing Operating 2375.000000 Reserve 9651.370000 2380.000000 Black Start Service 0.000000 Load Reconciliation for 2420.000000 Transmission Losses 74.820000 2510.000000 Auction Revenue Rights 73697.400000 2600.000000 RPM Auction 879165.000000 2630.000000 Capacity Transfer Rights 2121.300000 Incremental Capacity 2640.000000 Transfer Rights 341.700000 Capacity Resource 2661.000000 Deficiency 5667.740000 Non-Firm Point-to-Point 2140.000000 A Transmission Service 10/1/2015 49.900000 Transmission 2210.000000 A Congestion 10/1/2015 0.000000 2220.000000 A Transmission Losses 7/1/2015 1.440000 Balancing Operating 2375.000000 A Reserve 9/1/2015 -88.000000 Balancing Operating 2375.000000 A Reserve 10/1/2015 -241.600000 Total Credits 1070600.100000 Monthly Billing Net Total 563202.980000 Previous Weekly Billing Net Total 396994.530000 Total Due / Receivable 166208.45 December 17, 2015 Page 29

Monthly Management Committee Update December 2015 Prepared By: Arline Holloway Client Services Manager Phone: 904-360-1347 Email: aholloway@teainc.org Date: January 28, 2016 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356.3900  Toll-Free: 800.423.4800

Monthly Management Committee Update December 2015 Table of Contents I. Executive Summary 1 Power Supply Summary 1 Supply Source Summary 2 Supply Variance 2 Generation Summary 3 Emissions Summary 5 Risk Management Summary 10 II. Budget Report 11 III. Operations Management 14 Operations Summary 14 IV. Appendix: PJM Invoice 28 January 28, 2016 Page ii

Monthly Management Committee Update December 2015 I. EXECUTIVE SUMMARY POWER SUPPLY SUMMARY Overall Power Supply costs were $658,115 below budget predominantly driven by lower PJM-Energy, Congestion and Losses and lower Hedge Energy costs. Dover’s budgeted cost for all power supply (capacity AND energy) was $73.74/MWh. The actual cost of all power supply (capacity AND energy) was $63.75/MWh. The actual cost of energy alone was $37.66/MWh as opposed to a budgeted energy cost of $43.75. Dover’s total load was 56,530 MWh versus a forecasted load of 57,800 MWh. Hedge purchases totaled 42,128 MWh, which was 75% of the actual load. The budgeted hedge purchase totaled 45,976 MWh, which was 80% of the budgeted load. Dover’s power purchases from hedge transactions totaled $1,721,267. Purchases from PJM (energy and fees) totaled $1,709,161. This number includes Locational Reliability charge of $904,154 and DA spot market energy charges of $357,636.72. Dover’s planned energy purchase from the SunPark solar installation was 804 MWhs. Dover’s actual energy purchase from the SunPark installation was 556 MWh. January 28, 2016 Page 1

Monthly Management Committee Update December 2015 Supply Source Summary Supply Variance January 28, 2016 Page 2

Monthly Management Committee Update December 2015 GENERATION SUMMARY Net Generation Revenue for the month of November was $480,618 versus a budget of $489,700. January 28, 2016 Page 3

Monthly Management Committee Update December 2015 Generation Breakdown City of Dover Monthly Wholesale Generation Formula December 2015 Net Generation 185.54 D Production Margin PJM - Generation Economic and Reliability Dispatch $ 18,212.62 A Natural Gas & Oil Consumption Purchases for Generation $ - Natural Gas Transport $ - Eastern Shore Cashout $ - Oil Consumption $ (19,510.82) Subtotal: Natural Gas & Oil Consumption $ (19,510.82) B Gross Production Margin $ (1,298.20) C = (A + B) $/MWh Generation Production Gross Margin $ (7.00) E = (C/D) PJM - Capacity Generation Capacity Credit $ 902,145.57 Reactive Supply and Transmission Losses $ 43,549.46 Subtotal: PJM - Capacity $ 945,695.03 F All in Generation Margin All in Generation Margin Total $ 944,396.83 (G = C + F) January 28, 2016 Page 4

Monthly Management Committee Update December 2015 EMISSIONS SUMMARY Emissions Allowance and Solar Renewable Energy Summary through December 31, 2015 The reinstated Cross-State Air Pollution Rule (CSAPR) replaced the Clean Air Interstate Rule (CAIR) beginning January 1, 2015. The State of Delaware was included in the CAIR footprint but is not included in the CSAPR footprint. CAIR allowances cannot be used for CSAPR compliance, so Dover’s CAIR allowances essentially became valueless when CSAPR was reinstated. EPA has recently updated the National Ambient Air Quality Standard for Ozone, which will expand Ozone non-Attainment areas and may result in more restrictive CSAPR standards. Based on a cursory review, it does not appear the CSAPR footprint will be expanded to include Delaware. The separate Clean Air Act acid rain deposition control program (CAA Title IV), which governs SO2 national allowance trading program, remains in effect for Dover. Beginning with the January 2015 report, TEA no longer includes a CAIR summary. It will continue to report on Dover’s Clean Air Act Title IV SO2 allowances. Market liquidity for Title IV SO2 allowances is very low, with few transactions occurring. The following table shows estimated values for Dover’s banked allowances, based on a market price assessment published by SNL Energy. Market Value for Clean Air Act Title IV Allowances 1 Commodity $/Ton Tons Market Value SO2 Allowances – Title IV $0.56 15,006 $8,403 Total $8,403 Regional Greenhouse Gas Initiative The State of Delaware is a participant in the Regional Greenhouse Gas Initiative (RGGI). The City of Dover must comply with RGGI by surrendering carbon dioxide (CO2) allowances pursuant to the State of Delaware’s laws (Title 7, Chapter 60, Sub-Title II-A). Dover had more than a sufficient number of RGGI allowances allocated to it to cover its requirements through the first compliance period (calendar years 2009-2011) and second compliance period (2012-2014). Any unused allowances are carried over (“banked”) for subsequent years. The table below includes Dover’s historical activities and includes projections through 2020. Two projections are presented: (1) future annual emissions based on the average for 2009-2014, and (2) future annual emissions based on 2010 actual CO2 emissions, which was the highest emissions year between 2009 and 2014. 1 October 20, 2015 Daily Power Report by SNL Energy January 28, 2016 Page 5

Monthly Management Committee Update December 2015 Dover, DE RGGI Allowance History and Forecast -December, 2015 CO2 Tons EOY Historical CO2 Tons CO2 Tons Projected EOY Compliance CO2 Allowances Allocated CO2 Projected EOY Emitted - Allowance Emitted - Proj. Emitted - Proj. Balance Year (CY) Purchased Allowances Balance (High) Historical Balance (Avg) (High) (Average) 2009 62,184 5,796 56,388 2010 49,747 32,971 73,164 2011 37,311 17,763 92,712 2012 27,983 15,957 104,738 2013 24,818 10,213 119,343 2014 1,000 N/A 25,426 94,917 94,917 94,917 2015 14,000 N/A 11,989 94,000 18,021 33,000 90,896 75,917 2016 N/A 18,021 33,000 72,875 42,917 2017 N/A 18,021 33,000 54,854 9,917 2018 N/A 18,021 33,000 36,833 -23,083 2019 N/A 18,021 33,000 18,812 -56,083 2020 N/A 18,021 33,000 791 -89,083 Dover RGGI Allowance History and Projection December 31, 2015 150,000 100,000 Tons of CO2 50,000 0 -50,000 -100,000 Historical CO2 Emissions Projected CO2 Emissions - Avg CO2 Tons Emitted - Proj. (High) EOY Historical Allowance Balance Projected EOY Balance (Average) Projected EOY Balance (High) January 28, 2016 Page 6

Monthly Management Committee Update December 2015 The table and chart indicate that Dover could run out of banked allowances as early as the end of 2017 under the high emissions scenario and by the end of 2020 under the average scenario. Therefore, Dover has recently initiated a program to participate in RGGI’s quarterly auctions to ensure it has adequate allowances in the future. In anticipation of needing additional RGGI allowances in the future, Dover has participated in the last four auctions and plans to continue to participate as required. The table below shows details for Dover’s allowance purchases for each of these previous auctions. Dover’s RGGI Allowance Purchase History RGGI Auction Auction Clearing Quantity Of Number Auction Date Price ($/Ton) Allowances Awarded Total Cost 26 Dec 3, 2014 $5.21 1,000 $ 5,210 27 Mar 11, 2015 $5.41 6,000 32,460 28 June 3, 2015 $5.50 4,000 22,000 29 Sept 3, 2015 $6.02 4,000 24,080 30 Dec 2, 2015 $7.50 0 0 Totals 15,000 $83,750 Dover was unable to participate in Auction 30 due to an administrative error. Even if it had participated, the auction cleared at a significantly higher price than the highest tier bid price which was approved by Dover at last month’s RMC meeting. RGGI futures prices from the Intercontinental Exchange are shown in the chart below: January 28, 2016 Page 7

Monthly Management Committee Update December 2015 The next RGGI auction will be held on March 9, 2016. The Cost Containment Reserve will be 10 Million tons with a CCR price of $8.00/ton. Based on the recent run-up in spot prices, it may be reasonable to expect the next auction will clear in the $8.00 to $8.50 range (assuming all CCR allowances are used). TEA will provide recommendations for Auction 31 during the February 2016 Risk Management Committee (RMC) meeting. Based on the January 26, 2016 ICE price for the January 2016 futures price ($8.45/ton), the estimated market value of Dover’s existing 91,546 2 ton RGGI allowance bank is $773,564. On November 17, 2015 RGGI held a stakeholder meeting to prepare for the 2016 RGGI program review. Discussion topics included EPA’s Clean Power Plan, potential changes to the RGGI allowance cap post 2020 and a discussion about RGGI’s Flexibility Mechanisms. A Delaware specific stakeholder “listening session” was held on November 20, 2015, with a focus on EPA’s Clean Power Plan and how it relates to the RGGI program. Additionally, on December 8, RGGI made a number of comments which were filed after the November 17 meeting. The next stakeholder meeting is scheduled on February 2, 2016. TEA will continue to monitor the 2016 program review as it evolves. Renewable Energy Certificates Dover owns two photovoltaic systems totaling 15 kW, consisting of one 5 kW unit at the Utilities Administration Building and two 5 kW units at the McKee Run generating station. Dover also receives solar energy produced by the 10 MW Dover Sun Park, which is owned by White Oak Solar Energy, LLC. In addition to all of the physical energy produced by the Sun Park, Dover receives 15% of Sun Park’s Solar Renewable Energy Credits (SRECS). Dover participates in the Delaware Municipal Electric Renewable Portfolio Standard (DMERPS) for compliance with the State of Delaware’s RPS laws applicable to municipal utilities. The first compliance period under DMERPS was for the 12 months ending May 2014, and the second compliance period was for the 12 months ending May 2015. Through the end of generation month November 2015, Dover had accumulated a total of 6,783 SRECS from these renewable energy resources. This total includes SRECS reported in PJM’s GATS account, Bonus allowances for Sun Park labor, and net of 2,941 SRECs transferred to DEMEC for surrender on October 3, 2014 for the first compliance period and 2,861 SRECs and 574 bonus SRECs for the second compliance period on November 9, 2015. Delaware periodically holds SRECs auctions; however, these auctions are for size tiers N1 – N3, E1 and E2. The Dover Sun Park is in the N4 tier for large-scale facilities. State-wide carve outs for Tier 4 has been fully subscribed, so there is not a market for Tier T4 SRECs in Delaware. The nearest viable market for Dover’s SRECs is Pennsylvania. Daily settlement prices from Flett Exchange Environmental Services. The most recent settlement prices for Pennsylvania SRECS are used in the table below. 2 Subject to verification from RGGI COATS account. January 28, 2016 Page 8

Monthly Management Committee Update December 2015 PJM-GATS Transferred to Balance 10% Bonus DEMEC for Net SREC SREC Vintage Market Before SRECs for 2014/15 Balance After (June 1 – May Clearing 2014/15 Sun Park Compliance Transfer and Market 3 31) Price Compliance Labor Bonus GATs Surrender Value 2011/2012 $ 0.00 0 290.2 290.2 0 $0 2012/2013 $ 0.00 2,173 215.7 215.7 2,173 0 $0 2013/2014 $10.00 2,701 268.0 68.1 688 2,212.8 22,129 2014/2015 $10.00 2,685 266.3 0 0 2,951.3 29,513 2015/2016 $15.00 1,473 146.2 0 0 1,619.2 24,288 Totals 9,032 1,186.4 574 2,861 6,783.4 $75,930 TEA continues to recommend to Dover to retain these allowances for compliance with its Renewable Portfolio Standard (RPS). Additionally, Dover will need to acquire additional SRECs resources in future years. It is apparent that Dover’s portion of SRECs produced by White Oak Solar Energy Center will not be sufficient in future years as the compliance requirements increase. DEMEC has indicated that it expects to have excess SRECs available for Dover’s compliance requirements. This and other alternatives will need to be evaluated in the near future. 3 Note: Retroactive Bonus Allowances were not transferred within PJM’s GATS system but were used to off-set 2014/15 compliance obligation. January 28, 2016 Page 9

Monthly Management Committee Update December 2015 RISK MANAGEMENT SUMMARY Forward power prices in PJM have increased. Monthly Change PY Hedge Ratio Blended Cost ($/MWh) ($/MWh) 2015-16 75% $41.72 ($0.31) 2016-17 59% $40.65 $0.19 2017-18 56% $40.23 $0.18 2018-19 49% $39.07 $0.11 2019-20 32% $36.74 $0.26 January 28, 2016 Page 10

Monthly Management Committee Update December 2015 II. BUDGET REPORT Budget Actual Variance Dec 15 Dec 15 Gross Load 57,800 56,530 1,270 Power Supply Hedged Energy $1,874,900 $1,721,267 $153,633 PJM - Energy, Congestion & Losses $549,200 333,123 $216,077 PJM - ARR, Transmission and Fees $650,000 479,171 $170,829 Dover SUN Park Energy $104,700 $74,637 $30,063 Dover SUN Park RECs $18,100 $15,920 $2,180 RECS (Solar and Non-Solar) $56,100 $0 $56,100 RGGI Credit Costs $43,700 $0 $43,700 Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $882,400 $896,867 ($14,467) Subtotal - Power Supply $4,262,100 $3,603,985 $658,115 Power Generation O&M Plant O&M $ 448,800 $ 463,779 $ (14,979) Subtotal Generation O&M $448,800 $ 463,779 ($14,979) Power Generation Production Margin PJM - Economic and reliability dispatch $0 ($18,213) $18,213 Fuel Costs - Natural Gas $0 $0 $0 Fuel Costs - Oil $0 $19,511 ($19,511) Testing Costs $0 $0 $0 Subtotal Generation Production Margin $0 $1,298 $ (1,298) Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($908,500) ($902,146) ($6,354) Emissions Allowance Sales $0 $0 $0 Reactive Supply - Gas ($30,000) ($43,549) $13,549 Subtotal - Non-Production Revenue ($938,500) ($945,695) $7,195 SubTotal - All Generation ($489,700) ($480,618) ($9,082) Total - Utilities Cost $3,772,400 $3,123,367 $649,033 Unit Costs Total - Power Supply $73.74 $63.75 $9.99 Total - Power Generation ($8.47) ($8.50) $0.03 Final Cost of Service to City of Dover Ratepayers $65.27 $55.25 $10.01 January 28, 2016 Page 11

Monthly Management Committee Update December 2015 Variance Analysis  Power Supply • Dover consumed 1,270 MWh less than forecasted for the month. • Dover saw a favorable variance for budgeted Hedged Energy of $153,633. • Dover experienced a favorable variance for budgeted PJM - Energy, Congestion & Losses of $216,077 and a favorable variance for PJM ARR, Transmission and Fees of $170,829. • This resulted in a net power supply cost of $55.05/MWh and a positive budget variance of $10.01/MWh below budget. • The city realized a favorable variance of $658,115 for power supply vs. the monthly budget. • Dover Sun Park generated 248 MWhs less than forecasted.  Generation • Non Production Revenue had a favorable variance of $7,195 due to higher Reactive Supply Revenue. • Net Generation Revenue had an unfavorable variance of $9,082 due to an unfavorable O&M and production margin variance. January 28, 2016 Page 12

Monthly Management Committee Update December 2015 Budget Actual Variance YTD YTD Gross Load 388,000 385,291 2,709 Power Supply Hedged Energy $13,073,500 $12,556,371 $517,129 PJM - Energy, Congestion & Losses $3,852,400 1,561,336 $2,291,064 PJM - ARR, Transmission and Fees $4,032,500 3,028,182 $1,004,318 Dover SUN Park Energy $1,007,800 $1,068,472 ($60,672) Dover SUN Park RECs $194,100 $198,103 ($4,003) RECS (Solar and Non-Solar) $336,600 $0 $336,600 RGGI Credit Costs $87,500 $24,080 $63,420 Management Fees $498,000 $498,000 $0 PJM - Capacity UCAP Obligated Purchased $5,237,400 $5,301,299 ($63,899) Subtotal - Power Supply $28,319,800 $24,235,843 $4,083,957 Power Generation O&M Plant O&M $ 3,402,800 $ 2,870,600 $ 532,200 Subtotal Generation O&M $3,402,800 $ 2,870,600 $532,200 Power Generation Production Margin PJM - Economic and reliability dispatch ($569,400) ($682,427) $113,027 Fuel Costs - Natural Gas $389,200 $195,592 $193,608 Fuel Costs - Oil $0 $110,545 ($110,545) Testing Costs $0 $0 $0 Subtotal Generation Production Margin ($180,200) ($376,290) $ 196,090 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($5,392,400) ($4,791,676) ($600,724) Emissions Allowance Sales $0 $0 $0 Reactive Supply - Gas ($180,000) ($351,903) $171,903 Subtotal - Non-Production Revenue ($5,572,400) ($5,143,579) ($428,821) SubTotal - All Generation ($2,349,800) ($2,649,269) $299,469 Total - Utilities Cost $25,970,000 $21,586,574 $4,383,426 Unit Costs Total - Power Supply $72.99 $62.90 $10.09 Total - Power Generation ($6.06) ($6.88) $0.82 Final Cost of Service to City of Dover Ratepayers $66.93 $56.03 $10.91 January 28, 2016 Page 13

Monthly Management Committee Update December 2015 III. OPERATIONS MANAGEMENT OPERATIONS SUMMARY During the month of December, there were no recordable accidents so the facility has gone 259 days thorough December 31, 2015 without an OSHA Recordable Accident, and there were no lost time accidents so it has been 343 days since the last lost time accident. There were also no environmental incidents during the month of December. Unit 11 was dispatched by PJM on December 5 due to a constraint on the Milford-Steele line, the unit was cost capped. Unit 11 was on line for 2.42 hours and Units 1, 2, and 3 were not dispatched during the month of December. All Units were available for the remainder of the month. The actual expenses for the month of December are $463,779 against a budgeted amount of $448,775 for an unfavorable variance of $15,004 or 3.34%. The variance was due to the following: A favorable monthly variance of $43,971 was due to not having a full complement of employees for this time period, a favorable monthly variance of $1,008 was due to lower water/sewer account was less than budgeted and completion of the network cabling replacement project, and an unfavorable monthly variance of $59,983 due primarily to the timing of home office consolidated invoices being processed for payment. Primarily the November costs were booked in the December expenses. January 28, 2016 Page 14

Monthly Management Committee Update December 2015 NAES Corporation Dover, Delaware December 2015 Monthly Report Happy Holidays from McKee Run Generating Station! Cover picture: The Christmas lights on display at McKee Run on Unit #3 stack with wishes for a Merry Christmas and Happy New Year to everyone! January 28, 2016 Page 15

Monthly Management Committee Update December 2015 Table of Contents 1.0 Environmental, Health and Safety 2.0 Financials 3.0 Operations 4.0 Maintenance 5.0 Capital Improvement Projects (CIP) 6.0 General Plant Information 7.0 Training 8.0 Upcoming Events January 28, 2016 Page 16

Monthly Management Committee Update December 2015 1.0 Environmental, Health and Safety During the month of December, there were no recordable accidents, lost time accidents or environmental incidents. The facility has gone 259 days through December 31, 2015 without an OSHA Recordable Accident or a Lost Time since the April 16, 2015 reportable accident. There were no Near Misses reported in December 2015 at McKee Run. During the month of December, there were no IWW discharges to the Kent County Public Works sewer system. The December Significant Industrial User (SIU) report was submitted to Kent County Public Works indicating no discharges occurred. McKee Run submitted a waiver of cyanide analysis to the Kent County Public Works division since cyanide was not detected in four (4) consecutive quarters. The waiver from Kent County was granted and McKee Run no longer has to analyze for cyanide. During the month of December, there were no sampling events at Outfall 001, 004, 005 and 006. The December DMR was submitted to DNREC indicating no discharge from Outfall 001, 004, 005 and 006 for this month. No NPDES exceedances have been identified. All non-contact cooling tower blowdown water is being discharged directly to the Kent County Department of Public Works under the facilities Industrial Wastewater Discharge Permit #18. DNREC was on-site December 22, 2015 for the annual Surface Water Discharge assessment. DNREC reviewed SPCC Plans and daily logs, Storm Water Plans, training documents, review of lab calibration procedures plus a field tour to inspect all storm water outfalls. Based on the inspectors evaluation of the documents and field tour mentioned above, McKee Run and VanSant passed the assessment. McKee Run conducted a required full deployment drill as part of the Facility Response Plan requirements. The full deployment drill was conducted to measure McKee Run, City of Dover, Dover Fire and Police Departments, LEPC, State agencies and spill response contractors readiness in the event of a worst case discharge from the 2.5 million gallon tank of No. 2 fuel oil. The drill required full participation from the all entities mentioned above included being prepared to deploy watercraft and harbor boom into Silver Lake. Based on the requirements necessary to pass the exercise, McKee Run fulfilled those requirements. January 28, 2016 Page 17

Monthly Management Committee Update December 2015 January 28, 2016 Page 18

Monthly Management Committee Update December 2015 2.0 Financials Monthly and year-to-date financial results as compared with the approved power plant budget for the Generation Units are provided below. 2.1 Variance Analysis: The actual expenses for the month of December are $463,779 against a budgeted amount of $448,775 for an unfavorable variance of $15,004 or 3.34%. The variance was due to the following: PERSONNEL EXPENSES: A favorable monthly variance of $43,971 was due to not having a full complement of employees for this time period. As a result, this impacted three (3) labor accounts – Straight Time, Overtime, and Labor Burdens. MATERIALS AND SUPPLIES EXPENSES: A favorable monthly variance of $1,008 was due to lower costs in the water – sewer account than budgeted and completion of network cabling that was completed earlier in the fiscal year. ADMINISTRATIVE EXPENSES: An unfavorable monthly variance of $59,983 was due primarily to the timing of home office consolidated invoices being processed for payment. The operator management fee and insurance costs from November were booked in the December expenses. January 28, 2016 Page 19

Monthly Management Committee Update December 2015 3.0 Operations Unit Operations / Outages / Trips: Unit 11 was dispatched by PJM on December 5 at 0625 due to a constraint on the Milford-Steele line; the unit was cost-capped. Unit 11 was online at 0723 and ran for 2.417 hours. Units 1, 2, and 3 were not dispatched in the month of December. January 28, 2016 Page 20

Monthly Management Committee Update December 2015 January 28, 2016 Page 21

Monthly Management Committee Update December 2015 3.1 Team Report: The operators also use the GPi Learning courses to improve their knowledge and skills. The GPI online training which supports plant safety, OSHA, and environmental training requirements are being used by the teams to complete their training for the year. Along with the GPI OSHA training, the operators review the plant’s safety procedures. Operations personnel continue to support maintenance by working on Preventative Maintenance (PM) work orders and other work orders that they have the skills to successfully complete the task. The Operations Department continues to utilize the Day Shift Workers in both the Operations and Maintenance areas to assist with maintenance of the plant. 4.0 Maintenance During the month of December, the Plant Maintenance staff continued addressing the backlog of work orders, preventative maintenance (PM’s) and new work orders received during the month. Back logged Work Orders are work orders that have been open for greater than thirty days. There were 40 new work orders issued with 51 work orders being completed, and 17 of the back logged work orders completed during the month. There were no new Safety Work Orders entered into the plant’s Computerized Maintenance Management System (MP2) during the month and none were completed. The table below summarizes the monthly work order activities based on MP2 records and will continue to improve with time. This table gives a representation of identified outstanding work; Preventative Maintenance tasks completion and remaining corrective work orders and back logged work orders that require attention. January 28, 2016 Page 22

Monthly Management Committee Update December 2015 Notable activities during the month include: The Maintenance and Operations staff completed the installation of the new fuel oil bypass piping around the fuel oil unloading meter. Operations removed the standing fuel oil, completed a LOTO and installed nitrogen for pipe purging during the pipe removal process to commence Maintenance removed the spool piece and removed existing fuel oil piping to install the new bypass piping. The LOTO was removed and the piping leak tested. This allows the plant to bypass the fuel oil unloading meter for calibration, PM maintenance or repair service. The Maintenance and IC&E staff participated in the Facility Response Plan Drill. Mock drill was commenced with the discovery of fuel oil leaking from the fuel oil tank. Staff responded to the emergency call and deployed booms and pads in the drill area. The spill trailer was utilized during this event. Also special creek booms were placed in the nearby creek to contain the fuel oil from entering Silver Lake. This was a drill. The Maintenance staff repaired the VanSant carbon tank. During the regeneration process of the VanSant DI, it was discovered that the carbon tank had a pinhole leak. The tank was locked out, drained and the repair completed. LOTO was removed and the process started again. No leaks were discovered. The IC&E staff completed the change out of the VanSant natural gas skid condensate collection receptacle. The collection jar had become very hard to read and monitor condensate levels. A new self- contained five (5) gallon drum with a level indicator was installed. This allows the daily site inspector to easily see any amount of condensate being contained. January 28, 2016 Page 23

Monthly Management Committee Update December 2015 5.0 Capital Improvement Projects (CIP) This month’s report for CIP project planned and budgeted for the current budget year 2015/2016 with the status to date for the project. 2015/2016 CIP Status: January 28, 2016 Page 24

Monthly Management Committee Update December 2015 6.0 General Plant Information Throughout the month of December, three of our most recently hired Operators sat for the PJM Examination. Debro Curtis, Kyle Polumbo and Jesse Kummerer each attempted this challenging exam. Although they were not successful, we applaud their efforts to build on their knowledge base in preparing for successfully achieving this step in their professional training in the near future. Plant employees completed the 2015 Annual Food Drive for the local Food Bank. Our goal was to collect at least 150 lbs. of food, to best last year’s donations of 135 lbs. Our drive continued through December 11, at which time all donations were turned over to the Food Bank. Our generous employees managed to bring in a total of 355 lbs. of food, well over our initial goal of 150 lbs. Employees were encouraged to guess the total weight of the donations, with Erik Petty, Senior Operator, guessing the closest. Congratulations to Erik and all staff who participated and made a difference. On December 22 we held a Plant Holiday Celebration with a Turkey Fry and all the Fixings. All staff contributed with food, snacks, drinks and supplies. In addition, employees were encouraged to participate in a Secret Santa. Gifts were limited to $25.00 or less, and we had a large participation rate for the meal and the gift-giving. New employee Jacob Aucoin started as Plant Engineer on December 29. Jake earned his Bachelor of Science in Mechanical Engineering from Louisiana State University in Baton Rouge. Jake has most recently worked with DuPont and Dentsply Caulk, and has experience with mechanical reliability monitoring and improvement, failure analysis, facility maintenance, workplace and machine safety, hazard identification, analysis and hazard mitigation, to name a few areas of experience. We look forward to having Jake integrated into our team to support the many needs of the facility. Interviews are completed for the IC&E Technician and an offer was made to John Neff on January 5, 2016. John accepted this offer, and is currently going through the NAES screening process. More information on John will be posted in next month’s Monthly Report. 7.0 Training Joe Hultberg from Condor Technologies was on site December 10 and 11 to hold classes on boiler and cooling water treatment focusing on Unit 3. The classes were set up to help our new operators to have a better understanding of the water chemistry and the best way to react to the results of testing. The two classes were three hours each and covered all shifts. Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. The monthly safety topic was on “Eye Injury Prevention Fact Sheet”, each day, an estimated 2,000 workers suffer eye injuries on the job, which robs many of them of their sight. January 28, 2016 Page 25

Monthly Management Committee Update December 2015 8.0 Upcoming Events A forecast of general event dates for the power plant projects, outages and various agency reporting dates are listed below. 9.0 “Value Added” Accomplishments in 2015 During the year the power plant staff is tasked with providing Operation and Maintenance support for maintaining the City of Dover power generation assets in a ready to run status and to protect the assets for the City. Listed below are some of the accomplishments that were done this past year that we feel protected, added value to, and provided improvement to the overall operation and reliability of the City’s assets.  Repair of Unit 3A ID Fan from fire incident during startup of unit in January  Recovery from winter freeze up of the units and component repairs  Replacement of Condensate piping 6” and 8” line (approx. 200’ of piping)  Heat trace installation and insulation installation on repaired condensate piping  Replacement of concrete pads with deck gratings outdoors and heat trace and insulation to condensate piping to allow  Rewind of 3B ID Fan after motor cooling fan blade failure and replacement of motor cooling fans to improve blade performance/reduce failure(s).  Removal of 3A ID fan motor for inspection, testing and replacement of motor cooling fan blades before they could fail was done to prevent similar failure that occurred on 3B ID Fan Motor.  Summer 2015 run season allowed additional unit operations to allow us to train and qualify 3 new Control Room Operators and excellent training and introduction to the old technology for 5 new employees. Great morale builder and invaluable training lessons.  Inlet Fogging System installation, testing and commissioning for summer operation improvements (capacity) was completed for the Van Sant unit.  Performance testing at Van Sant proved a 6.3 MW increase in unit capacity.  Commenced weekly operational test on the starting diesel for Van Sant to improve start reliability of the unit. In the past unit would sit for up to 6 months without operation which led inconsistent start performance. This identified several issues which were tuned, adjusted and improved on for starting reliability. January 28, 2016 Page 26

Monthly Management Committee Update December 2015  Correction of diesel starting engine issues to improve start reliability for the Van Sant unit included: diesel fuel injector replacement, some were sticking from lack of operations, throttle setting adjustment was performed as unit was not capable of coming on line in a timely manner, improved diesel start time of unit with adjustments to idle settings and ramp speed of diesel, and diesel throttle linkage adjustment was done to improve engine operation, engine was hunting and slow to come up to speed.  Instituted a once a month full speed no load run to exercise the CT and to engage new employees in proper CT operation, this is improving the operating knowledge of senior operators as well as providing invaluable on hands training to new operators.  Installation of hot water boiler additional heaters to allow space heat to supply power plant building.  Winterization of power plant Van Sant and MRGS, power plant building at MRGS the building is significantly warmer then past winters.  McKee Run submitted a waiver of cyanide analysis to the Kent County Public Works since cyanide was not detected in four (4) consecutive quarters. The waiver from Kent County was granted and McKee Run no longer has to analyze for cyanide. The City of Dover will realize a cost saving from no more cyanide analysis.  Removed incandescent light bulbs and replaced them with LED lights in an effort to reduce electricity costs for lighting and for longer lasting bulbs which equates to less frequent purchase of replacement light bulbs.  Installed filter fabric silt sacks over Outfall 005 to significantly reduce sediment from storm water run-off from entering the Outfall. DNREC approved the action and is very pleased with the pollution reduction measure.  McKee Run hired a professional pest removal company to trap and remove groundhogs from the property. Groundhogs were burrowed and damaged the Tank 1 (2.5MM No. 2 fuel oil tank) berm which jeopardized the integrity of the berm. The empty holes were backfilled by McKee Run operators.  At the recommendation of the pest company, McKee Run hired a landscape firm to cut an eight foot (8’) wide path around the perimeter of the fencing to further reduce the likelihood of pests from returning.  In coordination with the City of Dover IT Department, the entire computer cabling network at McKee Run was upgraded and replaced throughout the facility. All old cabling was replaced with the latest Cat 6, shielded cable. All connections were tested, logged and documented. Computer racks on the 3rd floor and Computer Room were replaced. This has resulted in greater reliability and less down time due to outdated support systems.  Developed an internal Budget Variance Report for the O&M Budget so our staff has a current status of the budget line items to help comply with the annual O&M budget.  In coordination with City of Dover IT Department, a Barracuda Internet Filter was installed on the computer network to minimize virus and security threats from the internet.  McKee Run employees were all converted to Microsoft Exchange e-mail hosting to allow easier, more secure access to their e-mail accounts, and to keep up with technological changes in communication.  Added dirt to the area immediately North of Unit #3 Cooling Water Tower, the final grading of the area is not complete but the addition of the dirt has eliminated a low lying area and once the finally grade is finished by public works, and grass is planted, this area will not be a concern for DNREC or outfall concerns. January 28, 2016 Page 27

Monthly Management Committee Update December 2015 IV. APPENDIX: PJM INVOICE REPORT NAME: Monthly Billing Statement - CSV and XML CUSTOMER ACCOUNT: City of Dover, Delaware CUSTOMER CODE: DOVDE CUSTOMER ID: 76.000000 FINAL BILLING STATEMENT ISSUED: 1/8/2016 9:12 BILLING PERIOD START DATE: 12/1/2015 BILLING PERIOD END DATE: 12/31/2015 INVOICE NUMBER: 2015123100076.000000 INVOICE DUE DATE: 1/15/2016 12:00 SOURCE BILLING PERIOD CHARGES ADJ BILLING LINE ITEM NAME START AMOUNT ($) 1100.000000 Network Integration Transmission Service 449639.810000 1108.000000 Transmission Enhancement 70050.530000 1130.000000 Firm Point-to-Point Transmission Service 0.000000 Non-Firm Point-to-Point Transmission 1140.000000 Service 0.000000 1200.000000 Day-ahead Spot Market Energy 357636.720000 1205.000000 Balancing Spot Market Energy -12316.700000 1210.000000 Day-ahead Transmission Congestion -47712.740000 1215.000000 Balancing Transmission Congestion 17205.320000 1220.000000 Day-ahead Transmission Losses 8543.730000 1225.000000 Balancing Transmission Losses 346.720000 1230.000000 Inadvertent Interchange -40.520000 Day-Ahead Load Response Charge 1242.000000 Allocation 17.520000 Real-Time Load Response Charge 1243.000000 Allocation 157.340000 1250.000000 Meter Error Correction -1466.580000 PJM Scheduling, System Control and Dispatch Service - Control Area 1301.000000 Administration 9668.490000 January 28, 2016 Page 28

Monthly Management Committee Update December 2015 PJM Scheduling, System Control and 1302.000000 Dispatch Service - FTR Administration 0.000000 PJM Scheduling, System Control and 1303.000000 Dispatch Service - Market Support 2224.810000 PJM Scheduling, System Control and Dispatch Service - Regulation Market 1304.000000 Administration 85.330000 PJM Scheduling, System Control and Dispatch Service - Capacity 1305.000000 Resource/Obligation Mgmt. 936.820000 PJM Scheduling, System Control and Dispatch Service - Advanced Second 1306.000000 Control Center 839.540000 PJM Scheduling, System Control and 1307.000000 Dispatch Service - Market Support Offset -223.600000 PJM Scheduling, System Control and Dispatch Service Refund - Control Area 1308.000000 Administration -62.840000 PJM Scheduling, System Control and 1310.000000 Dispatch Service Refund - Market Support -11.780000 PJM Scheduling, System Control and Dispatch Service Refund - Regulation 1311.000000 Market Administration -0.910000 PJM Scheduling, System Control and Dispatch Service Refund - Capacity 1312.000000 Resource/Obligation Mgmt. -5.270000 1313.000000 PJM Settlement, Inc. 223.600000 1314.000000 Market Monitoring Unit (MMU) Funding 229.520000 1315.000000 FERC Annual Recovery 3828.550000 Organization of PJM States, Inc. (OPSI) 1316.000000 Funding 39.450000 North American Electric Reliability 1317.000000 Corporation (NERC) 674.280000 1318.000000 Reliability First Corporation (RFC) 1097.110000 Transmission Owner Scheduling, System 1320.000000 Control and Dispatch Service 4245.690000 Reactive Supply and Voltage Control from 1330.000000 Generation and Other Sources Service 42490.630000 Regulation and Frequency Response 1340.000000 Service 8602.700000 1360.000000 Synchronized Reserve 6410.050000 1362.000000 Non-Synchronized Reserve 1625.710000 1365.000000 Day-ahead Scheduling Reserve 263.630000 1370.000000 Day-ahead Operating Reserve 3950.770000 1375.000000 Balancing Operating Reserve 1336.620000 Balancing Operating Reserve for Load 1376.000000 Response -0.030000 1378.000000 Reactive Services 1510.160000 1380.000000 Black Start Service 3407.310000 1400.000000 Load Reconciliation for Spot Market Energy 9356.330000 January 28, 2016 Page 29

Monthly Management Committee Update December 2015 Load Reconciliation for Transmission 1410.000000 Congestion -4176.940000 Load Reconciliation for Transmission 1420.000000 Losses -133.140000 Load Reconciliation for Inadvertent 1430.000000 Interchange 0.300000 Load Reconciliation for PJM Scheduling, 1440.000000 System Control and Dispatch Service 42.230000 Load Reconciliation for PJM Scheduling, System Control and Dispatch Service 1441.000000 Refund -0.260000 Load Reconciliation for Schedule 9-6 - 1442.000000 Advanced Second Control Center 4.720000 Load Reconciliation for Market Monitoring 1444.000000 Unit (MMU) Funding 0.800000 Load Reconciliation for FERC Annual 1445.000000 Recovery 13.700000 Load Reconciliation for Organization of PJM 1446.000000 States, Inc. (OPSI) Funding 0.140000 Load Reconciliation for North American 1447.000000 Electric Reliability Corporation (NERC) 2.410000 Load Reconciliation for Reliability First 1448.000000 Corporation (RFC) 3.930000 Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch 1450.000000 Service 15.190000 Load Reconciliation for Regulation and 1460.000000 Frequency Response Service 43.910000 Load Reconciliation for Synchronized 1470.000000 Reserve 18.940000 Load Reconciliation for Non-Synchronized 1472.000000 Reserve 3.060000 Load Reconciliation for Day-ahead 1475.000000 Scheduling Reserve 3.490000 Load Reconciliation for Balancing Operating 1478.000000 Reserve 5.710000 1490.000000 Load Reconciliation for Reactive Services 14.640000 1600.000000 RPM Auction 6324.930000 1610.000000 Locational Reliability 904154.060000 1932.000000 Generation Deactivation Refund -499.230000 1250.000000 A Meter Error Correction 11/1/2015 -7.240000 North American Electric Reliability 1317.000000 A Corporation (NERC) 12/1/2015 780.940000 1318.000000 A Reliability First Corporation (RFC) 12/1/2015 1298.130000 1360.000000 A Synchronized Reserve 11/1/2015 -0.310000 1365.000000 A Day-ahead Scheduling Reserve 11/1/2015 0.010000 1370.000000 A Day-ahead Operating Reserve 7/1/2015 7.510000 1375.000000 A Balancing Operating Reserve 12/1/2013 1.280000 1375.000000 A Balancing Operating Reserve 6/1/2015 1.450000 1375.000000 A Balancing Operating Reserve 7/1/2015 0.560000 1375.000000 A Balancing Operating Reserve 9/1/2015 6.730000 January 28, 2016 Page 30

Monthly Management Committee Update December 2015 1375.000000 A Balancing Operating Reserve 10/1/2015 -110.000000 1375.000000 A Balancing Operating Reserve 11/1/2015 1.220000 Michigan - Ontario Interface Phase Angle 1911.000000 A Regulators 11/1/2015 181.830000 Total Charges 1852808.520000 SOURCE BILLING PERIOD CREDITS ADJ BILLING LINE ITEM NAME START AMOUNT ($) 2100.000000 Network Integration Transmission Service 0.000000 2108.000000 Transmission Enhancement 55113.410000 2130.000000 Firm Point-to-Point Transmission Service 0.000000 Non-Firm Point-to-Point Transmission 2140.000000 Service 619.600000 2210.000000 Transmission Congestion 0.000000 2220.000000 Transmission Losses 14083.320000 Transmission Owner Scheduling, System 2320.000000 Control and Dispatch Service 0.000000 Reactive Supply and Voltage Control from 2330.000000 Generation and Other Sources Service 29467.580000 Regulation and Frequency Response 2340.000000 Service 0.000000 2360.000000 Synchronized Reserve 0.000000 2365.000000 Day-ahead Scheduling Reserve 0.000000 2370.000000 Day-ahead Operating Reserve 0.000000 2375.000000 Balancing Operating Reserve 12497.040000 2380.000000 Black Start Service 0.000000 Load Reconciliation for Transmission 2420.000000 Losses 87.610000 2510.000000 Auction Revenue Rights 76153.980000 2600.000000 RPM Auction 908470.500000 2630.000000 Capacity Transfer Rights 2192.010000 2640.000000 Incremental Capacity Transfer Rights 353.090000 2661.000000 Capacity Resource Deficiency 4741.790000 2666.000000 Load Management Test Failure 3723.840000 Non-Firm Point-to-Point Transmission 2140.000000 A Service 11/1/2015 52.490000 2220.000000 A Transmission Losses 7/1/2015 -1.440000 Total Credits 1107554.820000 Monthly Billing Net Total 745253.700000 Previous Weekly Billing Net Total 668840.700000 Total Due / Receivable 76413.000000 January 28, 2016 Page 31

Dover GREEN ENERGY SUMMARY AS OF 1/27/2016 Dover Green Energy Funds Total Collected Green Energy Funds Ever $ 1,242,664.82 As January 27, 2016 Monthly Deposits and Payments DEMEC Admin Fee Paid $ 77,460.37 Starting Balance $ 72,677.09 State Annual Admin Fee Total Paid $ 26,675.07 Deposit* $ 29,237.45 Grants Paid $ 535,563.25 Outgoing Payments Grants/Fees Reserved and Amounts Owed $ 2,536.25 DEMEC Admin Fee* $ 2,923.75 Dover Library Green Building Improvements Cost $ 1,500,000.00 State 2014 Admin Fee $ - Dover Library Reimbursements paid to Dover to date $ 397,408.32 Grants Paid $ - Energy Depot Program Costs Paid $ 61,978.16 Energy Depot $ 1,692.13 Efficiency Program Incentives Paid $ 37,268.34 Library Reimbursement $ - Solar Electric Power Association (SEPA) Dues Paid $ 6,476.41 SEPA Dues $ - *Total Funds Available $ 97,298.66 Ending Balance $ 97,298.67 Encumbered Funds to Date - Dov. Lib. $98,500 due June 1 $ 90,000.00 *Deposits during this period represent through December 2015 Individual Grant Funds Availble $ 7,298.66 COMPLETED PROJECTS ONLY DNREC FEE OWED Status Applicant Type Grant Reservation Request Review Fee COMPLETED PROJECTS ONLY DNREC FEE OWED Michael J Kopp Geo-Res Paid $ 37.50 COMPLETED PROJECTS ONLY DNREC FEE OWED Frank Daniels Geo-Res Paid $ 26.25 Total $ 63.75 RESERVED BUT INCOMPLETE PROJECTS Status Applicant Type Grant Reservation Request Review Fee RESERVED BUT INCOMPLETE PROJECTS Lee Herrera Res-Geo $ 2,300.00 $ 172.50 Total $ 2,300.00 $ 172.50 ENERGY DEPOT FEES - (quarterly) Paid Fee Period Amount 3/3/2008 Start-up Fees $ 5,872.50 4/15/2008 Start-up Fees $ 1,957.50 4/15/2008 Mar, Apr, May 2008 $ 1,692.13 7/22/2008 June, July, Aug 2008 $ 1,692.13 10/10/2008 Sept, Oct, Nov 2008 $ 1,692.13 1/2/2009 Dec 08, Jan, Feb 2009 $ 1,692.13 4/3/2008 Mar, Apr, May 2009 $ 1,692.13 7/1/2009 June, July, Aug 2009 $ 1,692.13 9/11/2009 Sept, Oct, Nov 2009 $ 1,692.13 1/4/2010 Dec 09, Jan, Feb 2010 $ 1,692.13 3/29/2010 Mar, Apr, May 2010 $ 1,692.13 6/30/2010 June, July, Aug 2010 $ 1,692.13 10/4/2010 Sept, Oct, Nov 2010 $ 1,692.13 1/3/2011 Dec 2010, Jan, Feb 2011 $ 1,692.13 4/5/2011 Mar, Apr, May 2011 $ 1,692.13 7/8/2011 June, July, Aug 2011 $ 1,692.13

10/4/2011 Sept, Oct, Nov 2011 $ 1,692.13 1/3/2012 Dec 2011; Jan, Feb 2012 $ 1,692.13 4/5/2012 Mar, Apr, May 2012 $ 1,692.13 7/2/2012 June, July, Aug 2012 $ 1,692.13 9/25/2012 Sept, Oct, Nov 2012 $ 1,692.13 11/30/2012 Dec 12, Jan, Feb 2013 $ 1,692.13 2/25/2013 Mar, Apr, May 2013 $ 1,692.13 7/22/2013 June, July, Aug 2013 $ 1,692.13 8/26/2013 Sept, Oct, Nov 2013 $ 1,692.13 12/3/2013 Dec 13. Jan, Feb 2014 $ 1,692.13 3/4/2014 Mar, Apr, May 2014 $ 1,692.13 6/4/2014 June, July, Aug 2014 $ 1,692.13 9/4/2014 Sept, Oct, Nov 2014 $ 1,692.13 12/1/2014 Dec 14, Jan, Feb 2015 $ 1,692.13 3/9/2015 Mar, Apr, May 2014 $ 1,692.13 6/11/2015 June, July, Aug 2015 $ 1,692.13 9/1/2015 Sept, Oct, Nov 2015 $ 1,692.13 12/1/2015 Dec 15. Jan, Feb 2016 $ 1,692.13 Total $ 61,978.16 Solar Energy Professionals Association (SEPA) - (2015 and Forward particpation is through AMP at no additional charge) Paid Membership Fee Amount 3/19/2012 2012 Annual Membership $ 2,158.81 1/31/2013 2013 Annual Membership $ 2,158.80 1/27/2014 2014 Annual Membership $ 2,158.80 Total $ 6,476.41

City of Dover Electric Revenue Fund FY16 - White Oak Solar Park Incremental Cost Original July August September October November December YTD Budget Power Supply & Generation Dover Sun Park - Energy $ 241,720 $ 264,734 $ 204,656 $ 175,542 $ 107,183 $ 74,637 $ 1,068,472 $ 2,313,861 Dover Sun Park - REC's 43,325 42,602 30,249 26,003 15,920 - 158,100 363,381 Total Power Supply Cost 285,046 307,336 234,905 201,546 123,103 74,637 1,226,572 2,677,242 Non-Solar Power Supply Cost (119,924) (123,989) (97,565) (81,616) (48,168) (35,068) (506,330) (720,030) Incremental Energy Cost $ 165,122 $ 183,347 $ 137,340 $ 119,929 $ 74,935 $ 39,569 $ 720,242 $ 1,957,212 Revenues Customer Sales - Electricity (8,419) (8,580) (7,472) (7,473) (7,799) (7,621) (47,364) (93,900) Rent Receipts (15,177) - - (15,177) - - (30,354) (93,700) Total Revenues (23,596) (8,580) (7,472) (22,650) (7,799) (7,621) (77,718) (187,600) Incremental Sun Park Cost $ 141,526 $ 174,767 $ 129,868 $ 97,279 $ 67,136 $ 31,948 $ 642,524 $ 1,769,612 MWh Purchased/Generated - Solar 2,084.336 2,100.192 1,525.008 1,308.064 798.680 556.160 8,372.440 18,159.000 MWh $ Solar Energy $ 115.97 $ 126.05 $ 134.20 $ 134.20 $ 134.20 $ 134.20 $ 127.62 $ 127.42 Solar REC's MWh 313.000 315.000 228.000 196.000 120.000 - 1,172.000 MWh $ Solar REC (one month lag)* 138.42 135.24 132.67 132.67 132.67 - 134.90 MWh $ Non-Solar Energy $ 57.54 $ 59.04 $ 63.98 $ 62.39 $ 60.31 $ 63.05 Note: Solar REC's are one month behind due to the time the invoice is received.

CITY OF DOVER PROPOSED ORDINANCE #2016-01 WITH STAFF AMENDMENT #1 (SA#1) (Staff Amendment #1 indicated in green text) 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 2 MET: 3 That Chapter 18 - Animals, Section 18-1. - Definitions of the Dover Code be amended by inserting the 4 following definition in its correct alphabetical order: 5 Fowl means any various domestic birds intended for keeping outdoors, by way of example but 6 not limited to: Chickens, roosters, ducks, geese, turkeys, guinea fowl, emus, rheas, ostriches and 7 pigeons. 8 BE IT FURTHER ORDAINED: 9 That Appendix B - Zoning, Article 3 - District Regulations, Section 1 - One-family residence zones [(R-20, 10 R-15, R-10, R-8 and R-7)], Subsection 1.1 - Uses permitted, Subsection 1.15 - Accessory uses, limited to 11 the following:, paragraph (d) - Keeping domestic animals, of the Dover Code be amended by deleting the 12 text indicated in red strikeout and inserting the bold, blue text, as follows: 13 1.15 Accessory uses, limited to the following: 14 (a) Professional office or studio of an artist, dentist, musician, teacher, or physician, but not 15 including veterinarians, provided that: 16 i. Such office or studio is incidental to the residential use of the premises and is carried on by 17 a resident thereon with not more than one nonresident assistant; and 18 ii. Such office or studio shall occupy not more than 30 percent of the area of one floor of the 19 main building. 20 iii. Studios where dancing or music instruction is offered to groups in excess of four pupils at 21 one time or where concerts or recitals are held are prohibited. 22 iv. Medical centers, barbershops, beauty parlors, real estate offices, funeral homes or similar 23 uses shall not be considered permitted accessory uses. 24 (b) Garden house, tool house, playhouse, greenhouse or pool incidental to the residential use of the 25 premises and not operated for gain. 26 (c) Private garage, provided that, in the case of a one-family dwelling, such garage shall have a 27 capacity of not more than three passenger automobiles. One such space may be leased to a person 28 not [a] resident on the premises. 29 (d) Keeping domestic animals (except pigs and fowl) for individual domestic purposes or as pets., 30 provided not No more than three dogs over six months old are permitted. Any fowl being 31 kept as of March 15, 2016 must be relocated by March 15, 2017 June 15, 2016. and not 32 more than 25 fowl shall be permitted, and no animals (except dogs) or fowl shall be penned 33 or housed within 20 feet of any lot line.

Proposed Ordinance #2016-01 - Appendix B, Article 3, Section 1 Page 2 34 (e) (Reserved.) 35 (f) Dormitories accessory to schools, provided that such dormitories conform to the bulk regulations 36 of the RG-1 zone. For purposes of computing bulk requirements, each four rooms shall be 37 considered one dwelling unit. Parking shall be calculated as identified in Article 6-Off-Street 38 Parking, Section 3-Required off-street parking spaces, Paragraph 3.1-Schedule of requirements. 39 (g) Customary home occupations, provided that: 40 i. No display of products, goods and/or signs shall be visible from the street. 41 ii. Such home occupation shall be incidental and secondary to the residential use of the 42 premises and shall be conducted in the principal building by the resident or residents that 43 reside therein. 44 iii. Nonresident assistants or co-workers shall be prohibited. 45 iv. Such home occupation shall not occupy more than 30 percent of the area of one floor in the 46 principal building. 47 v. There shall be no exterior effect such as noise, traffic, odor, dust, smoke, gas, fumes, 48 radiation, or electromagnetic interference. 49 BE IT FURTHER ORDAINED: 50 That Appendix B - Zoning, Article 12 - Definitions of the Dover Code be amended by inserting the 51 following definition in its correct alphabetical order: 52 Fowl means any various domestic birds intended for keeping outdoors, by way of example but 53 not limited to: Chickens, roosters, ducks, geese, turkeys, guinea fowl, emus, rheas, ostriches and 54 pigeons. 55 ADOPTED: * 56 S:\ORDINANCES\2016\DRAFT\ORDINANCE #2016-01 APDX B-ZONING, ART 3, SEC 1, SUBSEC 1.15 ACCESSORY USES (FOWL)\Proposed Ordinance #2016-01 with SA#1-Fowl-Reconsideration-LF&A 57 02-09-2016.wpd 58 SYNOPSIS 59 The proposed amendment would disallow the keeping of foul in one-family residence zones. 60 (SPONSORS: HARE, HUTCHISON, AND COLE) 61 Actions History 62 02/09/2016 - Scheduled for Reconsideration - Legislative, Finance, and Administration Committee 63 01/25/2016 - City Council Referred Back to Legislative, Finance, and Administration Committee 64 01/11/2016 - Introduced - Legislative, Finance, and Administration Committee

ACTION FORM PROCEEDING: Legislative, Finance & Administration Committee DEPARTMENT OF ORIGIN: Finance DATE SUBMITTED: 01/28/2016 PREPARED BY: Donna Mitchell, Controller/Treasurer SUBJECT: Proposed Budget Amendment for Fiscal Year 2016 APPROVALS: City Council EXHIBITS: N/A EXPENDITURE REQUIRED: Total: AMOUNT BUDGETED: N/A TIMETABLE: Upon Council approval RECOMMENDED ACTION: Staff recommends approval of the proposed Budget Amendment for Fiscal Year 2016. The proposed budget amendment includes the adjustments to the Beginning Budget Balances for all funds now that the City’s FY15 audit has been completed. It also includes any adjustments related to Council Actions to date on changes in project budgets or operating items that were not included in the original budget. Financial Policy transfers of favorable carry forward balances are as follows – • The General Fund includes a transfer to the Police Pension Fund of $106,500 and a transfer to the Civilian Pension Fund of $266,400, for a total of $372,900. The Water/Sewer Fund transfer of $248,400 to the Pension Fund is also included due to favorable personnel budget variances. A transfer from the Electric Fund of $408,200 for personnel savings is not included. (See last bullet) • The General Capital Asset Reserve has been increased by $229,600 due to favorable revenue variances. • The Electric Rate Stabilization Reserve has been increased by $394,800 due to favorable power supply cost. Additional adjustments are as follows – • Increases in the following revenue items based on greater than planned receipts Fines & Police Revenue, Investment Income, Business Licenses, Intrafund Services, Municipal Street Aid, and Transfer Taxes, totaling $915,300. Water/Wastewater Revenues lowered $102,200 based on current year to date trends. • General Fund appropriation of $240,400 for the purchase of New Street properties. The asbestos removal and demolition cost has been adjusted for in the Inspections budget $56,500. • Increases to Division budgets for vacation sell-back, retirement payout, and education assistance with a corresponding decrease to Other Employment Expenses across all applicable funds. • Increase Police Department for FOP contract settlement $487,400 (covered by higher transfer taxes) along with $22,000 of expenses related to Police Donations received. • Transferred 2010 Bond Reserve balance of $2,108,000 to the Electric Improvement & Ext. Fund. • Adjustments to Pension & OPEB transfers as per the Actuary reports as presented to City Council on September 10, 2015. The Electric Fund experienced a budget decrease totaling $2,054,800 million attributed to the Actuary results.

FIRST READING CITY OF DOVER ORDINANCE # 2016-07 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 2 The amount hereinafter named aggregating Forty Seven Million Sixty Two Thousand Eight Hundred 3 dollars ($47,062,800) or so much thereof as may be necessary are hereby appropriated from 4 current revenues and other funds for the use by several departments of the Municipal Government 5 for the fiscal year beginning July 1, 2015 and ending June 30, 2016: 6 GENERAL FUND 7 CASH RECEIPT SUMMARY FOR 2015-2016 8 2015/16 2015/16 9 BUDGET REVISED 10 BEGINNING BALANCE $ 3,977,500 $ 4,820,400 11 RECEIPTS 12 FINES AND POLICE REVENUE 702,300 724,300 13 INVESTMENT INCOME 35,000 105,200 14 LIBRARY REVENUES 72,000 72,000 15 KENT COUNTY BOOK REIMBURSEMENT 450,000 450,000 16 BUSINESS LICENSES 1,425,000 1,459,000 17 PERMITS AND OTHER FEES 1,436,300 1,436,300 18 MISCELLANEOUS CHARGES 22,700 22,700 19 POLICE EXTRA DUTY 533,000 533,000 20 PROPERTY TAXES 12,844,500 12,844,500 21 BID REVENUE 49,700 49,700 22 RECREATION REVENUE 149,000 149,000 23 FRANCHISE FEE 672,300 672,300 24 SANITATION FEES 2,580,000 2,580,000 25 RENT REVENUE - GARRISON FARM 93,700 93,700 26 COURT OF CHANCERY FEES 1,065,100 1,065,100 27 RECEIPTS SUBTOTAL 22,130,600 22,256,800 28 INTERFUND SERVICE RECEIPTS 29 INTRAFUND SERVICE RECEIPTS W/WW 1,492,700 1,501,800 30 INTRAFUND SERVICE RECEIPTS ELECTRIC 3,738,500 3,763,500 31 INTERFUND SERVICE RECEIPTS SUBTOTAL 5,231,200 5,265,300 32 GRANTS: 33 POLICE RELATED/EXTRA DUTY 74,400 74,400 34 POLICE PENSION GRANT 500,000 500,000 35 GREEN ENERGY GRANT 98,500 98,500 36 MISC GRANT REVENUE 25,000 25,000 37 VERIZON RESERVE 50,000 50,000 38 GRANTS SUBTOTAL 747,900 747,900 39 TRANSFERS FROM: 40 TRANSFER TAX 1,340,000 1,986,100 41 MUNICIPAL STREET AID 564,200 673,100 42 CIVIL TRAFFIC PENALTIES 450,000 450,000 43 WATER/WASTEWATER 850,000 850,000 44 ELECTRIC 10,000,000 10,000,000 45 OTHER RESERVES 13,200 13,200 46 TRANSFERS FROM SUBTOTAL 13,217,400 13,972,400 47 TOTAL REVENUES 41,327,100 42,242,400 48 TOTAL BEGINNING BALANCE & REVENUE $ 45,304,600 $ 47,062,800 1

FIRST READING 49 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT (CONTINUED) 50 GENERAL FUND - EXPENDITURES AND BUDGET BALANCE FOR 2015-2016 51 2015/16 2015/16 52 DEPARTMENT EXPENSES BUDGET REVISED 53 CITY CLERK $ 383,400 $ 387,200 54 COUNCIL 118,100 118,100 55 TAX ASSESSOR 234,800 238,200 56 FIRE 745,400 745,400 57 GROUNDS MAINTENANCE 1,210,300 1,212,000 58 LIBRARY 1,510,000 1,516,000 59 RECREATION 729,500 735,700 60 LIFE SAFETY 482,200 483,000 61 CODE ENFORCEMENT 419,400 421,800 62 PLANNING 534,000 539,800 63 INSPECTIONS 664,700 724,400 64 ECONOMIC DEVELOPMENT 238,000 238,000 65 POLICE 15,159,000 15,882,400 66 POLICE EXTRA DUTY 602,400 602,400 67 STREETS 674,500 675,400 68 SANITATION 2,157,900 2,176,600 69 CITY MANAGER 750,300 756,800 70 INFORMATION TECHNOLOGY 704,800 711,900 71 FINANCE 978,500 989,100 72 PUBLIC WORKS - ADMINISTRATION 626,800 630,000 73 FACILITIES MANAGEMENT 707,500 719,700 74 PUBLIC WORKS - ENGINEERING 181,400 181,400 75 PROCUREMENT & INVENTORY 560,200 565,000 76 FLEET MAINTENANCE 768,500 768,500 77 CUSTOMER SERVICE 1,120,100 1,136,800 78 HUMAN RESOURCES 383,900 390,700 79 MAYOR 76,100 76,100 80 DEPARTMENT SUBTOTALS 32,721,700 33,622,400 81 OTHER EXPENSES 82 DEBT SERVICE 660,800 669,400 83 CONTRIBUTION TO DDP 70,000 70,000 84 MISCELLANEOUS GRANT RELATED EXP 25,000 25,000 85 INSURANCE 690,000 690,000 86 RETIREES HEALTH CARE 1,895,600 1,567,700 87 OTHER EMPLOYMENT EXPENSES 520,100 197,200 88 BANK & CREDIT CARD FEES 15,000 17,400 89 UNCOLLECTIBLES - TRASH AND OTHER 50,000 50,000 90 STREET LIGHTS 797,700 797,700 91 NEW STREET PROPERTIES ACQUISITIONS - 240,400 92 OTHER EXPENSE SUBTOTAL 4,724,200 4,324,800 93 TRANSFERS 94 TRANSFER TO CAPITAL FUND - PROJECTS 2,625,400 2,625,400 95 TRANSFER TO CAPITAL ASSET RESERVE - 229,600 96 APPROP. TO THE GENERAL EMPLOYEE PENSION FUND - 594,300 97 APPROP. TO THE POLICE PENSION FUND 570,000 676,500 98 APPROP. POLICE PENSION - STATE GRANT 500,000 500,000 99 TRANSFER TO VERIZON RESERVE 50,000 50,000 100 TRANSFER TO INVENTORY WRITE-OFFS 10,000 10,000 101 TRANSFERS SUBTOTAL 3,755,400 4,685,800 102 TOTAL EXPENDITURES 41,201,300 42,633,000 103 CURRENT YEAR BALANCE 4,103,300 4,429,800 104 TOTALS $ 45,304,600 $ 47,062,800 105 The City Manager is hereby authorized, without further approval of the City Council, to make 106 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 107 department with the exception of any transfers prohibited by City Procedure #F306. 108 ADOPTED: 2

FIRST READING 109 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 110 GOVERNMENTAL CAPITAL PROJECTS FUND 111 REVENUES AND BUDGET FOR 2015-2016 112 113 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 114 The amount hereinafter named aggregating Five Million Six Hundred Eighty Nine Thousand Five Hundred dollars 115 ($5,689,500)or so much thereof as may be necessary are hereby appropriated from current revenues and other 116 funds for the use by several departments of the Municipal Government for the fiscal year beginning July 1, 2015 117 and ending June 30, 2016: 118 REVENUES 119 2015/16 2015/16 120 BUDGET REVISED 121 BEGINNING BALANCE - PROJECTS $ 154,800 $ 2,926,700 122 REVENUES 123 INCOME FROM SALE OF ASSETS 20,300 51,900 124 GRANT RECEIPTS - 80,500 125 INTEREST EARNINGS 5,000 5,000 126 TRANSFER FROM GENERAL FUND 2,625,400 2,625,400 127 SUBTOTAL PROJECT RECEIPTS 2,650,700 2,762,800 128 TOTAL FUNDING SOURCES 2,650,700 2,762,800 129 TOTAL BEGINNING BALANCE AND REVENUES $ 2,805,500 $ 5,689,500 130 EXPENSE SUMMARY 131 2015/16 2015/16 132 EXPENDITURES BUDGET REVISED 133 FIRE $ 145,600 $ 445,800 134 GROUNDS MAINTENANCE 201,100 188,800 135 LIFE SAFETY 55,700 55,700 136 POLICE 262,100 302,700 137 RECREATION - 73,900 138 STREETS 1,428,500 3,656,700 139 SANITATION 449,000 449,000 140 CITY MANAGER 24,700 24,700 141 FLEET MAINTENANCE 84,000 84,500 142 BANK FEES - 1,300 143 DEPARTMENT SUBTOTAL 2,650,700 5,283,100 144 TOTAL EXPENDITURES 2,650,700 5,283,100 145 BUDGET BALANCE 154,800 406,400 146 TOTAL BUDGET BALANCE & EXPENDITURES $ 2,805,500 $ 5,689,500 147 The City Manager is hereby authorized, without further approval of the City Council, to make 148 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 149 department with the exception of any transfers prohibited by City Procedure #F306. 150 ADOPTED: 3

FIRST READING 151 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 152 GENERAL FUND CONTINGENCY 153 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 154 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 155 The amount hereinafter named aggregating Seven Hundred Twenty One Thousand Four Hundred dollars 156 ($721,400) or so much thereof as may be necessary are hereby appropriated from current revenues 157 and other funds for the use by several departments of the Municipal Government for the fiscal year 158 beginning July 1, 2015 and ending June 30, 2016: 159 CASH RECEIPTS 160 2015/16 2015/16 161 BUDGET REVISED 162 BEGINNING BALANCE $ 719,200 $ 720,300 163 INTEREST EARNED 1,100 1,100 164 TOTALS $ 720,300 $ 721,400 165 EXPENSE SUMMARY 166 2015/16 2015/16 167 BUDGET REVISED 168 CARRY FORWARD TO NEXT YEAR 720,300 721,400 169 TOTALS $ 720,300 $ 721,400 170 The City Manager is hereby authorized, without further approval of the City Council, to make 171 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 172 department with the exception of any transfers prohibited by City Procedure #F306. 173 ADOPTED: 4

FIRST READING 174 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 175 GENERAL CAPITAL ASSET RESERVE 176 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 177 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 178 The amount hereinafter named aggregating One Million One Hundred Forty Seven Thousand Two Hundred 179 dollars ($1,147,200) or so much thereof as may be necessary are hereby appropriated from current 180 revenues and other funds for the use by several departments of the Municipal Government for the fiscal 181 year beginning July 1, 2015 and ending June 30, 2016: 182 CASH RECEIPTS 183 2015/16 2015/16 184 BUDGET REVISED 185 BEGINNING BALANCE $ 914,000 $ 915,100 186 RECEIPTS 187 INTEREST EARNINGS 2,500 2,500 188 TRANSFER FROM GENERAL FUND - 229,600 189 TOTAL RECEIPTS 2,500 232,100 190 TOTALS $ 916,500 $ 1,147,200 191 EXPENSE SUMMARY 192 2015/16 2015/16 193 BUDGET REVISED 194 CARRY FORWARD TO NEXT YEAR $ 916,500 $ 1,147,200 195 TOTALS $ 916,500 $ 1,147,200 196 The City Manager is hereby authorized, without further approval of the City Council, to make 197 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 198 department with the exception of any transfers prohibited by City Procedure #F306. 199 ADOPTED: 5

FIRST READING 200 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 201 PARKLAND/RECREATION RESERVE 202 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 203 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 204 The amount hereinafter named aggregating Three Hundred Twenty One Thousand Eight Hundred Dollars 205 ($321,800) or so much thereof as may be necessary are hereby appropriated from current revenues and 206 other funds for the use by several departments of the Municipal Government for the fiscal year 207 beginning July 1, 2015 and ending June 30, 2016: 208 OPERATING REVENUES 209 2015/16 2015/16 210 BUDGET REVISED 211 PRIOR YEAR BALANCE $ 295,700 $ 320,800 212 INTEREST INCOME 1,000 1,000 213 TOTALS $ 296,700 $ 321,800 214 OPERATING EXPENSES 215 2015/16 2015/16 216 BUDGET REVISED 217 CURRENT YEAR BALANCE 296,700 321,800 218 TOTALS $ 296,700 $ 321,800 219 The City Manager is hereby authorized, without further approval of the City Council, to make 220 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 221 department with the exception of any transfers prohibited by City Procedure #F306. 222 ADOPTED: 6

FIRST READING 223 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 224 WATER/WASTEWATER FUND 225 REVENUES AND BUDGET FOR 2015-2016 226 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 227 The amount hereinafter named aggregating Seventeen Million Eighty Eight Thousand One Hundred 228 dollars ($17,088,100) or so much thereof as may be necessary are hereby appropriated from current 229 revenues and other funds for the use by several departments of the Municipal Government for the 230 fiscal year beginning July 1, 2015 and ending June 30, 2016: 231 2015/16 2015/16 232 BUDGET REVISED 233 BEGINNING BALANCE - WATER $ 861,600 $ 1,305,700 234 BEGINNING BALANCE - WASTEWATER 293,400 156,900 235 TOTAL BEGINNING BALANCES 1,155,000 1,462,600 236 BASE REVENUE 237 WATER SERVICES 6,200,000 5,676,000 238 WASTEWATER SERVICES 3,728,000 3,944,000 239 WASTEWATER TREATMENT SERVICES 3,026,500 3,108,000 240 GROUNDWATER INFLOW ADJUSTMENT 1,864,300 1,988,600 241 WATER TANK SPACE LEASING 341,900 341,900 242 SEWER IMPACT FEES 250,000 250,000 243 WATER IMPACT FEES 250,000 250,000 244 INTEREST - WATER 1,000 1,000 245 INTEREST - WASTEWATER 2,000 2,000 246 MISCELLANEOUS SERVICE FEE 64,000 64,000 247 TOTAL REVENUES 15,727,700 15,625,500 248 TOTAL BEGINNING BALANCES AND REVENUES $ 16,882,700 $ 17,088,100 7

FIRST READING 249 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 250 WATER/WASTEWATER FUND - EXPENSES AND BUDGET BALANCE FOR 2015-2016 251 2015/16 2015/16 252 DIRECT EXPENSES BUDGET REVISED 253 ENGINEERING & INSPECTION $ 517,500 $ 521,500 254 WATER DEPARTMENT 673,300 678,100 255 WATER TREATMENT PLANT 1,910,000 1,918,100 256 WASTEWATER DEPARTMENT 968,600 968,600 257 DIRECT EXPENDITURE SUBTOTAL 4,069,400 4,086,300 258 OTHER EXPENSES 259 DEBT SERVICE - WATER 545,200 521,100 260 DEBT SERVICE - WASTEWATER 586,900 611,300 261 RETIREES HEALTH CARE 178,600 60,200 262 OTHER EMPLOYMENT EXPENSES 20,000 3,100 263 KENT COUNTY TREATMENT CHARGE 4,130,000 4,130,000 264 INTRAFUND SERVICE FEES 1,492,700 1,501,800 265 BANK & CREDIT CARD FEES 46,200 46,200 266 OTHER EXPENSES SUBTOTAL 6,999,600 6,873,700 267 TRANSFER TO: 268 GENERAL FUND FROM WATER 550,000 550,000 269 GENERAL FUND FROM WASTEWATER 300,000 300,000 270 WATER IMP AND EXT 1,800,000 1,800,000 271 WASTEWATER IMP AND EXT 1,500,000 1,500,000 272 CONTINGENCY RESERVE WATER 32,000 32,000 273 TRANSFER TO THE GENERAL EMPLOYEES PENSION FUND - 248,400 274 TRANSFER TO SUBTOTAL 4,182,000 4,430,400 275 TOTAL EXPENSES 15,251,000 15,390,400 276 BUDGET BALANCES 277 BUDGET BALANCE WATER 1,048,600 916,800 278 BUDGET BALANCE WASTEWATER 583,100 780,900 279 BUDGET BALANCE SUBTOTALS 1,631,700 1,697,700 280 TOTAL CURRENT YEAR BALANCES AND EXPENSES $ 16,882,700 $ 17,088,100 281 The City Manager is hereby authorized, without further approval of the City Council, to make 282 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 283 department with the exception of any transfers prohibited by City Procedure #F306. 284 ADOPTED: 8

FIRST READING 285 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 286 WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND 287 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 288 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 289 The amount hereinafter named aggregating Thirteen Million One Hundred Fifty Eight Thousand Six Hundred 290 dollars ($13,158,600) or so much thereof as may be necessary are hereby appropriated from current revenues 291 and other funds for the use by several departments of the Municipal Government for the fiscal year 292 begining July 1, 2015 and ending June 30, 2016: 293 CASH RECEIPTS 294 2015/16 2015/16 295 BUDGET REVISED 296 BEGINNING BALANCE - WATER $ 833,500 $ 4,990,300 297 BEGINNING BALANCE - WASTEWATER 1,027,600 4,551,700 298 TOTAL BEGINNING BALANCES 1,861,100 9,542,000 299 REVENUES 300 TRANS FR OPERATING FUND - WATER 1,800,000 1,800,000 301 TRANS FR OPERATING FUND - WASTEWATER 1,500,000 1,500,000 302 TRANSFER FR WASTEWATER IMPACT FEE 165,000 165,000 303 INTEREST INCOME 25,000 69,900 304 GRANT RECEIPTS - 20,300 305 MISCELLANEOUS RECEIPTS - 61,400 306 TOTAL REVENUES 3,490,000 3,616,600 307 TOTAL BEGINNING BALANCES & REVENUES $ 5,351,100 $ 13,158,600 308 EXPENSE SUMMARY 309 2015/16 2015/16 310 EXPENSES BUDGET REVISED 311 WATER $ 2,028,600 $ 5,442,600 312 WASTEWATER 1,822,100 5,299,100 313 WATER TREATMENT PLANT - 284,400 315 BANK FEES - 7,500 314 TOTAL EXPENSES 3,850,700 11,033,600 315 BUDGET BALANCE - WATER 617,400 1,176,200 316 BUDGET BALANCE - WASTEWATER 883,000 948,800 317 CURRENT YEAR BALANCE SUBTOTALS 1,500,400 2,125,000 318 TOTAL BUDGET BALANCES & EXPENSES $ 5,351,100 $ 13,158,600 319 The City Manager is hereby authorized, without further approval of the City Council, to make 320 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 321 department with the exception of any transfers prohibited by City Procedure #F306. 322 ADOPTED: 9

FIRST READING 323 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 324 WATER/WASTEWATER CAPITAL ASSET RESERVE 325 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 326 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 327 The amount hereinafter named aggregating One Million Twenty Eight Thousand dollars ($1,028,000) 328 or so much thereof as may be necessary are hereby appropriated from current revenues and 329 other funds for the use by several departments of the Municipal Government for the fiscal year 330 beginning July 1, 2015 and ending June 30, 2016: 331 CASH RECEIPTS 332 2015/16 2015/16 333 BUDGET REVISED 334 BEGINNING BALANCE - WATER $ 514,600 $ 510,700 335 BEGINNING BALANCE - WASTEWATER 511,300 509,500 336 TOTAL BEGINNING BALANCES 1,025,900 1,020,200 337 RECEIPTS 338 INTEREST EARNINGS - WATER 3,900 3,900 339 INTEREST EARNINGS - WASTEWATER 3,900 3,900 340 TOTAL RECEIPTS 7,800 7,800 341 TOTALS $ 1,033,700 $ 1,028,000 342 EXPENSE SUMMARY 343 2015/16 2015/16 344 BUDGET REVISED 345 CURRENT YEAR BALANCE - WATER $ 518,500 $ 514,600 346 CURRENT YEAR BALANCE - WASTEWATER 515,200 513,400 347 CURRENT YEAR BALANCE SUBTOTALS 1,033,700 1,028,000 348 TOTALS $ 1,033,700 $ 1,028,000 349 The City Manager is hereby authorized, without further approval of the City Council, to make 350 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 351 department with the exception of any transfers prohibited by City Procedure #F306. 352 ADOPTED: 10

FIRST READING 353 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 354 WATER/WASTEWATER IMPACT FEE RESERVE 355 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 356 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 357 The amount hereinafter named aggregating Two Million One Hundred Eighty Two Thousand Eight 358 Hundred dollars ($2,182,800) or so much thereof as may be necessary are hereby appropriated from 359 current revenues and other funds for the use by several departments of the Municipal Government 360 for the fiscal year beginning July 1, 2015 and ending June 30, 2016: 361 CASH RECEIPTS 362 2015/16 2015/16 363 BUDGET REVISED 364 BEGINNING BALANCE - WATER $ 200,500 $ 427,500 365 BEGINNING BALANCE - WASTEWATER 1,463,400 1,742,700 366 TOTAL BEGINNING BALANCES 1,663,900 2,170,200 367 RECEIPTS 368 INTEREST EARNINGS - WATER 1,500 1,500 369 INTEREST EARNINGS - WASTEWATER 11,100 11,100 370 TOTAL RECEIPTS 12,600 12,600 371 TOTALS $ 1,676,500 $ 2,182,800 372 EXPENSE SUMMARY 373 2015/16 2015/16 374 BUDGET REVISED 375 TRANSFER TO I & E FUND FROM WASTEWATER IMPACT FEES $ 165,000 $ 165,000 375 CURRENT YEAR BALANCE - WATER 202,000 429,000 376 CURRENT YEAR BALANCE - WASTEWATER 1,309,500 1,588,800 377 CURRENT YEAR BALANCE SUBTOTALS 1,511,500 2,017,800 378 TOTALS $ 1,676,500 $ 2,182,800 379 The City Manager is hereby authorized, without further approval of the City Council, to make 380 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 381 department with the exception of any transfers prohibited by City Procedure #F306. 382 ADOPTED: 11

FIRST READING 383 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 384 WATER/WASTEWATER CONTINGENCY RESERVE 385 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 386 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 387 The amount hereinafter named aggregating Three Hundred Twenty Nine Thousand Six Hundred dollars 388 ($329,600) or so much thereof as may be necessary are hereby appropriated from current revenues 389 and other funds for the use by several departments of the Municipal Government for the fiscal year 390 beginning July 1, 2015 and ending June 30, 2016: 391 CASH RECEIPTS 392 2015/16 2015/16 393 BUDGET REVISED 394 BEGINNING BALANCE - WATER $ 104,900 $ 105,200 395 BEGINNING BALANCE - WASTEWATER 189,700 190,200 396 TOTAL BEGINNING BALANCES 294,600 295,400 397 RECEIPTS 398 INTEREST EARNINGS 2,200 2,200 399 TRANSFER FROM OPERATING ACCOUNT TO WATER 32,000 32,000 400 TOTAL RECEIPTS 34,200 34,200 401 TOTALS $ 328,800 $ 329,600 402 BUDGET SUMMARY 403 2015/16 2015/16 404 BUDGET REVISED 405 CURRENT YEAR BALANCE - WATER 137,700 138,300 406 CURRENT YEAR BALANCE - WASTEWATER 191,100 191,300 407 CURRENT YEAR BALANCE SUBTOTALS 328,800 329,600 408 TOTAL EXPENSES AND CURRENT YEAR BALANCES $ 328,800 $ 329,600 409 The City Manager is hereby authorized, without further approval of the City Council, to make 410 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 411 department with the exception of any transfers prohibited by City Procedure #F306. 412 ADOPTED: 12

FIRST READING 413 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 414 ELECTRIC REVENUE FUND 415 REVENUES AND BUDGET FOR 2015-2016 416 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 417 The amount hereinafter named aggregating Ninety One Million Six Hundred Fifty Three Thousand Two 418 hundred dollars ($91,653,200) or so much thereof as may be necessary are hereby appropriated from 419 current revenues and other funds for the use by several departments of the Municipal Government 420 for the fiscal year beginning July 1, 2015 and ending June 30, 2016: 421 2015/16 2015/16 422 BUDGET REVISED 423 BEGINNING BALANCE $ 6,177,600 $ 8,117,200 424 BASE REVENUE 425 DIRECT SALES TO CUSTOMER 78,279,200 78,279,200 426 UTILITY TAX 1,281,100 1,281,100 427 MISCELLANEOUS REVENUE 597,200 597,200 428 RENT REVENUE 202,600 202,600 429 GREEN ENERGY 128,000 128,000 430 INTEREST EARNINGS 47,900 47,900 431 TRANSFER FROM RATE STABILIZATION 3,000,000 3,000,000 432 TOTAL REVENUES 83,536,000 83,536,000 433 TOTAL BEGINNING BALANCE & REVENUES 89,713,600 91,653,200 13

FIRST READING 434 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 435 ELECTRIC REVENUE FUND EXPENSES AND BUDGET BALANCE FOR 2015-2016 436 2015/16 2015/16 437 EXPENSES BUDGET REVISED 438 POWER SUPPLY $ 23,402,600 $ 23,402,600 439 SOLAR ENERGY 2,313,900 2,313,900 440 SOLAR RENEWAL ENERGY CREDITS 363,400 363,400 441 POWER SUPPLY MANAGEMENT 996,000 996,000 442 REC'S (Renewable Energy Credits) 673,400 673,400 443 RGGI (Regional Greenhouse Gas Init.) 175,000 175,000 444 PJM CHARGES - ENERGY 7,966,100 7,966,100 445 PJM CHARGES - TRANSMISSION & FEES 7,932,500 7,932,500 446 CAPACITY CHARGES 10,225,100 10,225,100 447 SUB-TOTAL POWER SUPPLY 54,048,000 54,048,000 448 PLANT OPERATIONS 6,434,600 6,382,900 449 GENERATIONS FUELS 1,167,300 1,167,300 450 PJM SPOT MARKET ENERGY (1,708,300) (1,708,300) 451 PJM CREDITS (360,000) (360,000) 452 CAPACITY CREDITS (10,472,100) (10,472,100) 453 GENERATION SUBTOTAL (4,938,500) (4,990,200) 454 POWER SUPPLY & GENERATION SUBTOTAL 49,109,500 49,057,800 455 DIRECT EXPENDITURES 456 TRANSMISSION/DISTRIBUTION 4,068,600 3,705,300 457 ELECTRICAL ENGINEERING 1,335,800 1,279,300 458 ADMINISTRATION 839,300 877,200 459 METER READING 360,500 334,200 460 SYSTEMS OPERATIONS 679,800 626,700 461 DIRECT EXPENDITURE SUBTOTALS 7,284,000 6,822,700 462 OTHER EXPENSES: 463 UTILITY TAX 1,281,100 1,281,100 464 ALLOW FOR UNCOLLECTIBLES 200,000 200,000 465 RETIREES HEALTH CARE 537,800 57,700 466 OTHER EMPLOYMENT EXPENSES 72,000 40,300 467 OPEB UNFUNDED LIABILITY 1,030,000 - 468 GREEN ENERGY PAYMENT TO DEMEC 128,000 128,000 469 INTRAFUND SERVICE FEES 3,738,500 3,763,500 470 INTEREST ON DEPOSITS 20,500 20,500 471 BANK & CREDIT CARD FEES 242,300 274,000 472 DEBT SERVICE 3,402,000 3,342,800 473 OTHER EXPENSES SUBTOTAL 10,652,200 9,107,900 474 TRANSFER TO: 475 IMPROVEMENT & EXTENSION 3,500,000 3,500,000 476 GENERAL FUND 10,000,000 10,000,000 477 TRANSFER INSURANCE RESERVE 10,000 10,000 478 TRANSFER CONTINGENCY RESERVE 13,000 13,000 479 TRANSFER RATE STABILIZATION RESERVE - 394,800 480 TRANSFER TO SUBTOTAL 13,523,000 13,917,800 481 TOTAL EXPENSES 80,568,700 78,906,200 482 BUDGET BALANCE - WORKING CAPITAL 9,144,900 12,747,000 483 TOTALS $ 89,713,600 $ 91,653,200 484 The City Manager is hereby authorized, without further approval of the City Council, to make 485 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 486 department with the exception of any transfers prohibited by City Procedure #F306. 487 ADOPTED: 14

FIRST READING 488 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 489 ELECTRIC UTILITY IMPROVEMENT AND EXTENSION FUND 490 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 491 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 492 The amount hereinafter named aggregating Fourteen Million Six Hundred Sixty One Thousand Two Hundred 493 dollars ($14,661,200) or so much thereof as may be necessary are hereby appropriated from current revenues 494 and other funds for the use by several departments of the Municipal Government for the fiscal year 495 beginning July 1, 2015 and ending June 30, 2016: 496 REVENUES 497 2015/16 2015/16 498 BUDGET REVISED 499 BEGINNING BALANCE $ 3,623,600 $ 7,095,300 500 REVENUES 501 TRANSFER FROM ELECTRIC 3,500,000 3,500,000 502 TRANSFER FROM 2010 BOND RESERVE - 2,108,000 503 GENERAL SERVICE BILLING 1,900,000 1,900,000 504 INTEREST EARNINGS 26,700 57,900 505 TOTAL REVENUES 5,426,700 7,565,900 506 TOTALS $ 9,050,300 $ 14,661,200 507 EXPENSE SUMMARY 508 2015/16 2015/16 509 EXPENSES BUDGET REVISED 510 ELECTRIC GENERATION $ 1,655,000 $ 2,299,800 511 TRANSMISSION AND DISTRIBUTION 2,887,600 3,602,900 512 ELECTRICAL ENGINEERING 1,724,300 3,401,700 513 METER READING - 23,000 514 BANK FEES - 22,300 515 TOTAL EXPENSES 6,266,900 9,349,700 516 BUDGET BALANCE 2,783,400 5,311,500 517 TOTAL BUDGET BALANCE & EXPENSES $ 9,050,300 $ 14,661,200 518 The City Manager is hereby authorized, without further approval of the City Council, to make 519 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 520 department with the exception of any transfers prohibited by City Procedure #F306. 15

FIRST READING 522 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 523 ELECTRIC UTILITY CONTINGENCY RESERVE 524 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 525 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 526 The amount hereinafter named aggregating Eight Hundred Fourty Two Thousand dollars ($842,000) 527 or so much thereof as may be necessary are hereby appropriated from current revenues and other 528 funds for the use by several departments of the Municipal Government for the fiscal year 529 beginning July 1, 2015 and ending June 30, 2016: 530 CASH RECEIPTS 531 2015/16 2015/16 532 BUDGET REVISED 533 BEGINNING BALANCE $ 825,300 $ 822,700 534 RECEIPTS 535 INTEREST EARNINGS 6,300 6,300 536 TRANSFER FROM ELECTRIC FUND 13,000 13,000 537 TOTAL RECEIPTS 19,300 19,300 538 TOTALS $ 844,600 $ 842,000 539 EXPENSE SUMMARY 540 2015/16 2015/16 541 BUDGET REVISED 541 CURRENT YEAR BALANCE 844,600 842,000 542 TOTALS $ 844,600 $ 842,000 543 The City Manager is hereby authorized, without further approval of the City Council, to make 544 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 545 department with the exception of any transfers prohibited by City Procedure #F306. 546 ADOPTED: 16

FIRST READING 547 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 548 ELECTRIC UTILITY DEPRECIATION RESERVE 549 SOURCES AND USE OF FUNDS FOR 2015-2016 550 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 551 The amount hereinafter named aggregating Ten Million Thirty Three Thousand Eight Hundred dollars 552 dollars ($10,033,800) or so much thereof as may be necessary are hereby appropriated from current 553 revenues and other funds for the use by several departments of the Municipal Government for the 554 fiscal year beginning July 1, 2015 and ending June 30, 2016: 555 CASH RECEIPTS 556 2015/16 2015/16 557 BUDGET REVISED 558 BEGINNING BALANCE $ 9,990,500 $ 9,957,900 559 INTEREST EARNINGS 75,900 75,900 560 TOTALS $ 10,066,400 $ 10,033,800 561 BUDGET SUMMARY 562 2015/16 2015/16 563 BUDGET REVISED 564 CURRENT YEAR BALANCE 10,066,400 10,033,800 565 TOTALS $ 10,066,400 $ 10,033,800 566 The City Manager is hereby authorized, without further approval of the City Council, to make 567 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 568 department with the exception of any transfers prohibited by City Procedure #F306. 569 ADOPTED: 17

FIRST READING 570 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 571 ELECTRIC UTILITY FUTURE CAPACITY RESERVE 572 SOURCES AND USE OF FUNDS FOR 2015-2016 573 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 574 The amount hereinafter named aggregating Ten Million One Hundred Eighty Five Thousand dollars 575 ($10,185,000) or so much thereof as may be necessary are hereby appropriated from current revenues 576 and other funds for the use by several departments of the Municipal Government for the fiscal year 577 beginning July 1, 2015 and ending June 30, 2016: 578 CASH RECEIPTS 579 2015/16 2015/16 580 BUDGET REVISED 581 BEGINNING BALANCE $ 10,140,900 $ 10,107,900 582 INTEREST EARNINGS 77,100 77,100 583 TOTALS $ 10,218,000 $ 10,185,000 584 BUDGET SUMMARY 585 2015/16 2015/16 586 BUDGET REVISED 587 CURRENT YEAR BALANCE 10,218,000 10,185,000 588 TOTALS $ 10,218,000 $ 10,185,000 589 The City Manager is hereby authorized, without further approval of the City Council, to make 590 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 591 department with the exception of any transfers prohibited by City Procedure #F306. 592 ADOPTED: 18

FIRST READING 593 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 594 ELECTRIC UTILITY INSURANCE STABLIZATION RESERVE 595 SOURCES AND USE OF FUNDS FOR 2015-2016 596 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 597 The amount hereinafter named aggregating Seven Hundred Fifty Six Thousand Two Hundred dollars 598 ($756,200) or so much thereof as may be necessary are hereby appropriated from current revenues 599 and other funds for the use by several departments of the Municipal Government for the fiscal year 600 beginning July 1, 2015 and ending June 30, 2016: 601 CASH RECEIPTS 602 2015/16 2015/16 603 BUDGET REVISED 604 BEGINNING BALANCE $ 743,100 $ 740,600 605 INTEREST EARNINGS 5,600 5,600 606 TRANSFER FROM ELECTRIC FUND 10,000 10,000 607 TOTALS $ 758,700 $ 756,200 608 BUDGET SUMMARY 609 2015/16 2015/16 610 BUDGET REVISED 611 CURRENT YEAR BALANCE 758,700 756,200 612 TOTALS $ 758,700 $ 756,200 613 The City Manager is hereby authorized, without further approval of the City Council, to make 614 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 615 department with the exception of any transfers prohibited by City Procedure #F306. 616 ADOPTED: 19

FIRST READING 617 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 618 ELECTRIC UTILITY RATE STABLIZATION RESERVE 619 SOURCES AND USE OF FUNDS FOR 2015-2016 620 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 621 The amount hereinafter named aggregating Seven Million Nine Hundred Fifty Seven Thousand Five 622 Hundred dollars ($7,957,500) or so much thereof as may be necessary are hereby appropriated from 623 current revenues and other funds for the use by several departments of the Municipal Government 624 for the fiscal year beginning July 1, 2015 and ending June 30, 2016: 625 CASH RECEIPTS 626 2015/16 2015/16 627 BUDGET REVISED 628 BEGINNING BALANCE $ 7,545,300 $ 7,505,400 629 INTEREST EARNINGS 57,300 57,300 630 TRANSFER FROM ELECTRIC OPERATING FUND - 394,800 631 TOTALS $ 7,602,600 $ 7,957,500 632 BUDGET SUMMARY 633 2015/16 2015/16 634 BUDGET REVISED 635 TRANSFER TO ELECTRIC FUND $ 3,000,000 $ 3,000,000 636 CURRENT YEAR BALANCE 4,602,600 4,957,500 637 TOTALS $ 7,602,600 $ 7,957,500 638 The City Manager is hereby authorized, without further approval of the City Council, to make 639 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 640 department with the exception of any transfers prohibited by City Procedure #F306. 641 ADOPTED: 20

FINAL READING 642 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 643 MUNICIPAL STREET AID FUND 644 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 645 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 646 The amount hereinafter named aggregating Six Hundred Seventy Three Thousand Two Hundred 647 dollars ($673,200) or so much thereof as may be necessary are hereby appropriated from current 648 revenues and other funds for the use by several departments of the Municipal Government for the 649 fiscal year beginning July 1, 2015 and ending June 30, 2016: 650 CASH RECEIPTS 651 2015/16 2015/16 652 BUDGET REVISED 653 BEGINNING BALANCE $ 100 $ 100 654 STATE GRANT 564,200 673,100 655 TOTALS 564,300 673,200 656 BUDGET SUMMARY 657 2015/16 2015/16 658 BUDGET REVISED 659 TRANSFER TO GENERAL FUND 564,200 673,100 660 CURRENT YEAR BALANCE 100 100 661 TOTALS $ 564,300 $ 673,200 662 The City Manager is hereby authorized, without further approval of the City Council, to make 663 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 664 department with the exception of any transfers prohibited by City Procedure #F306. 665 ADOPTED: 21

FIRST READING 666 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 667 WORKERS COMPENSATION FUND 668 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 669 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 670 The amount hereinafter named aggregating One Million Nine Hundred One Thousand Three Hundred 671 dollars ($1,901,300) or so much thereof as may be necessary are hereby appropriated from current 672 revenues and other funds for the use by several departments of the Municipal Government for the 673 fiscal year beginning July 1, 2015 and ending June 30, 2016: 674 OPERATING REVENUES 675 2015/16 2015/16 676 BUDGET REVISED 677 BEGINNING BALANCE $ 1,052,600 $ 1,248,200 678 INTEREST INCOME 10,600 10,600 679 PREMIUM FROM CITY 642,500 642,500 680 TOTALS $ 1,705,700 $ 1,901,300 681 OPERATING EXPENSES 682 2015/16 2015/16 683 BUDGET REVISED 684 PROGRAM EXPENSES/SUPPLIES - CLAIMS $ 475,000 $ 475,000 685 INSURANCE 103,900 103,900 686 BANK FEES 1,300 1,300 687 STATE OF DEL - SELF INSURANCE TAX 37,000 37,000 688 CONTRACTUAL SERVICES 25,000 25,000 689 TOTAL EXPENSES 642,200 642,200 690 CURRENT YEAR BALANCE 1,063,500 1,259,100 691 TOTALS $ 1,705,700 $ 1,901,300 692 The City Manager is hereby authorized, without further approval of the City Council, to make 693 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 694 department with the exception of any transfers prohibited by City Procedure #F306. 695 ADOPTED: 22

FIRST READING 696 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 697 COMMUNITY TRANSPORTATION IMPROVEMENT FUND 698 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 699 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 700 The amount hereinafter named aggregating Seven Hundred Forty Seven Thousand Two Hundred dollars 701 ($747,200) or so much thereof as may be necessary are hereby appropriated from current revenues and 702 other funds for the use by several departments of the Municipal Government for the fiscal year 703 beginning July 1, 2015 and ending June 30, 2016: 704 OPERATING REVENUES 705 2015/16 2015/16 706 BUDGET REVISED 707 PRIOR YEAR BALANCE $ 144,000 $ 57,800 708 GRANTS REVENUE 500,000 688,900 709 INTEREST INCOME 500 500 710 TOTALS $ 644,500 $ 747,200 711 OPERATING EXPENSES 712 2015/16 2015/16 713 BUDGET REVISED 714 PROGRAM EXP. GRANT RELATED $ 644,000 $ 655,100 715 CURRENT YEAR BALANCE 500 92,100 716 TOTALS $ 644,500 $ 747,200 717 The City Manager is hereby authorized, without further approval of the City Council, to make 718 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 719 department with the exception of any transfers prohibited by City Procedure #F306. 720 ADOPTED: 23

FIRST READING 721 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 722 LIBRARY GRANT FUND 723 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 724 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 725 The amount hereinafter named aggregating Three Hundred Thirty Eight Thousand Six Hundred dollars 726 ($338,600) or so much thereof as may be necessary are hereby appropriated from current revenues 727 and other funds for the use by several departments of the Municipal Government for the fiscal year 728 beginning July 1, 2015 and ending June 30, 2016: 729 OPERATING REVENUES 730 2015/16 2015/16 731 BUDGET REVISED 732 PRIOR YEAR BALANCE $ 17,300 $ 30,600 733 STATE GRANT 278,900 305,500 734 FEDERAL GRANT 2,500 2,500 735 TOTALS $ 298,700 $ 338,600 736 OPERATING EXPENSES 737 2015/16 2015/16 738 BUDGET REVISED 739 STATE GRANTS 740 FURNITURE/FIXTURES $ 3,100 $ 7,000 741 OFFICE SUPPLIES 24,000 30,800 742 PRINTING AND DUPLICATING 13,200 12,500 743 PROGRAM EXPENSES/SUPPLIES 24,100 27,500 744 BOOKS 129,200 133,300 745 AUDIO VISUAL SUPPLIES 75,100 77,200 746 POSTAGE 100 100 747 TRAINING/CONF/FOOD/TRAV 2,000 8,800 748 CONTRACTUAL SERVICES 900 - 749 OFF EQP/REPAIRS & MAINT 6,000 6,300 750 OTHER EQUIP - LEASE 1,200 2,000 751 SUBTOTAL EXPENSES STATE GRANTS 278,900 305,500 752 FEDERAL GRANTS 753 PROGRAM EXPENSES/SUPPLIES 2,500 2,500 754 SUBTOTAL EXPENSES FEDERAL GRANTS 2,500 2,500 755 GRAND TOTAL EXPENSES 281,400 308,000 756 CURRENT YEAR BALANCE 17,300 30,600 757 TOTALS $ 298,700 $ 338,600 758 The City Manager is hereby authorized, without further approval of the City Council, to make 759 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 760 department with the exception of any transfers prohibited by City Procedure #F306. 761 ADOPTED: 24

FIRST READING 762 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 763 POLICE GRANTS FUND 764 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 765 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 766 The amount hereinafter named aggregating Six Hundred Eighty Two Thousand Two Hundred dollars 767 ($682,200) or so much thereof as may be necessary are hereby appropriated from current revenues 768 and other funds for the use by several departments of the Municipal Government for the fiscal year 769 beginning July 1, 2015 and ending June 30, 2016: 770 OPERATING REVENUES 771 2015/16 2015/16 772 BUDGET REVISED 773 PRIOR YEAR BALANCE $ 125,000 $ 154,900 774 STATE AND FEDERAL GRANTS RECEIVED 527,300 527,300 775 TOTALS 652,300 682,200 776 OPERATING EXPENSES 777 2015/16 2015/16 778 BUDGET REVISED 779 EXPENDITURES 780 PERSONNEL EXPENDITURES 781 CADET PROGRAM SALARIES 71,400 71,400 782 CADET PROGRAM FICA 5,400 5,400 783 CADET PROGRAM W/COMP 3,500 3,500 784 MATERIALS AND SUPPLIES 785 POLICE EQUIPT & PROG SUPP 410,600 379,600 786 TECHNOLOGY EQUIPMENT 20,000 20,000 787 ADMINISTRATIVE EXPENDITURES 788 CELL PHONE CHARGES 15,000 15,000 789 TRAINING 17,000 45,000 790 AUDIT FEES 1,000 1,000 791 CONTRACTUAL SERVICES - 3,000 792 TOTAL EXPENDITURES 543,900 543,900 793 OTHER FINANCING USES 794 OPERATING TRANSFERS-OUT 74,400 74,400 795 TOTAL FINANCING USES 74,400 74,400 796 CURRENT YEAR BALANCE 34,000 63,900 797 TOTALS $ 652,300 $ 682,200 798 The above budget represents the combination of all State & Federal Grants. 799 The City Manager is hereby authorized, without further approval of the City Council, to make 800 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 801 department with the exception of any transfers prohibited by City Procedure #F306. 802 ADOPTED: 25

FIRST READING 803 2015-2016 BUDGET ORDINANCES - SECOND AMENDMENT 804 SUBSTANCE ABUSE GRANTS FUND 805 CASH RECEIPTS/REVENUES AND BUDGET FOR 2015-2016 806 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 807 The amount hereinafter named aggregating One Hundred Fifty Nine Thousand Two Hundred dollars 808 ($159,200) or so much thereof as may be necessary are hereby appropriated from current revenues 809 and other funds for the use by several departments of the Municipal Government for the fiscal year 810 beginning July 1, 2015 and ending June 30, 2016: 811 OPERATING REVENUES 812 2015/16 2015/16 813 BUDGET REVISED 814 PRIOR YEAR BALANCE $ 41,000 $ 98,200 815 STATE GRANTS RECEIVED 55,700 28,000 816 RECREATION REVENUE 33,000 33,000 816 TOTALS 129,700 159,200 817 OPERATING EXPENSES 818 2015/16 2015/16 819 BUDGET REVISED 820 EXPENDITURES 821 TEMPORARY HELP/BENEFITS 71,400 71,400 822 PROGRAM EXPENSES/SUPPLIES 5,400 5,400 823 TOTAL EXPENDITURES 76,800 76,800 824 CURRENT YEAR BALANCE 52,900 82,400 825 TOTALS $ 129,700 $ 159,200 826 The above budget represents the combination of all State & Federal Grants. 827 The City Manager is hereby authorized, without further approval of the City Council, to make 828 interdepartmental transfers of up to five percent of the amount hereinafter appropriated to any 829 department with the exception of any transfers prohibited by City Procedure #F306. 830 ADOPTED: 26

YOUR PARTNER Presentation to the Dover City Council February 9, 2016 1

Introductions SB & Company, LLC  William Seymour, Audit Partner  Gray Smith, Concurring Partner  Sisilia Mo, Engagement Manager 2

Scope of Services  Audit of June 30, 2015, financial statements  Review of the Comprehensive Annual Financial Report  Available for year-round consultation 3

Summary of the Results • Issued an unmodified opinion on the financial statements • Discovered no instances of fraud • Discovered no material weakness in internal controls • Received full cooperation from management • Results 2015 * 2014 2013 Increase (Decrease) in Net Position $ 9.303 $ (1,686) $ 10,335 Net Position $ 191,144 $ 218,102 $ 219.788 • No material audit journal entries purposed or made *- beginning balance was restated by $36,261,000 as a result of implementation of GASB 68 • GASB 74/75- Accounting for OPEB, will required an additional liability to be recorded. Current calculation is approximately $32.5 million 4

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FORCAM Audit Approach “Focus on Risk, Controls and Misstatement” 6

Significant Risk Areas Significant Risk Areas  Cash reconciliations  Investment valuation  Collectability of accounts and grants receivable  Accounts payable  Revenue recognition  Deferred revenue  Actuarial assumptions 7

Assessment of Control Environment Area Points to Consider Our Assessment  Key executive integrity, ethics and behavior  Control consciousness and operating style  Commitment to competence Control  Exercise oversight responsibility Environment  Organizational structure, responsibility, and authority  Enforce accountability  HR policies and procedures  Define objectives and risk tolerances  Identify, analyze, and respond to risk Not effective  Assess fraud risk Risk Assessment  Identify, analyze, and respond to change Suggested improvements  Mechanisms to anticipate, identify, and react to significant events  Processes and procedures to identify changes in GAAP, business Effective practices, and internal control  Design control activities  Design activities for the information system  Implement control activities  Existence of necessary policies and procedures  Clear financial objectives with active monitoring Control Activities  Logical segregation of duties  Periodic comparisons of book-to-actual and physical count-to- books  Adequate safeguards of documents, records, and assets  Assess controls in place 8

Assessment of Control Environment (continued) Area Points to Consider Our Assessment  Use quality information  Communicate internally  Communicate externally  Adequate performance reports produced from information systems Information and  Information systems are connected with business strategy Communication  Commitment of HR and finance to develop, test, and monitor IT systems and programs  Business continuity and disaster plan for IT  Established communication channels for employees to fulfill Not effective responsibilities Suggested  Adequate communication across organization improvements  Perform monitoring activities Effective  Remediate deficiencies Monitoring  Periodic evaluations of internal controls  Implementation of improvement recommendations 9

Evaluation of Key Processes Process Function A B C D Design Operation  Cash Management  Investment Accounting  Investment Monitoring Treasury     Investment Valuation  Investment Policy  Reconciliation  Methodology Estimation  Information     Calculation  Accounting Principles and Disclosure  Closing the Books Financial  Report Preparation    Reporting  General Ledger and Journal Entry Processing  Verification and Review of Results  Purchasing  Receiving     Expenditures  Accounts Payable and Cash Disbursement Not effective A Understand the Process C What Can Go Wrong Suggested improvements B Walk-Through D Test of Controls 10 Effective

Evaluation of Key Processes (continued) Process Function A B C D Design Operation  Hiring  Attendance Reporting Payroll  Payroll Accounting and Processing      Payroll Disbursements  Separation  Billing  Cash Receipts Revenue      Revenue Recognition  Cutoff  Physical Custody  Asset and Construction in Process Fixed Assets    Accounting  Depreciation Not effective A Understand the Process C What Can Go Wrong Suggested improvements B Walk-Through D Test of Controls Effective 11

Evaluation of Key Processes (continued) Process Function A B C D Design Operation  Assess Internal and External Risk  Regulatory Compliance Compliance      Monitor Compliance  Grant Compliance  Computer Operations  Segregation of Duties and Management Oversight Information  Information Security and Transaction     Technology Authorization  Program Integrity and Change Management Not effective A Understand the Process C What Can Go Wrong Suggested improvements B Walk-Through D Test of Controls Effective 12

Key Accounts Assertions and Audit Results Key Accounts Assertions Results Cash and cash equivalents Existence Accounts receivable, net Existence, Valuation Grants receivable Existence, Valuation Security deposit held Existence, Valuation Prepaid expenses Existence, Cut off Capital assets, net of accumulated depreciation Existence Accounts payable and accrued expenses Completeness Deferred revenue Completeness Grants payable Completeness Material adjustments Immaterial adjustments No adjustments 13

Key Accounts Assertions and Audit Results (continued) Key Accounts Assertions Results Government grants and contracts Occurrence, classification Contributions Occurrence, classification Foundation and other grants Occurrence, classification Fees Occurrence, Valuation Memberships Occurrence, classification Investment income Occurrence Other income Occurrence Operating expenses Completeness Interest expense Completeness Material adjustments Immaterial adjustments No adjustments 14

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Required Communications 1. Auditor’s Responsibilities Under Generally Accepted Auditing Standards (GAAS) The financial statements are the responsibility of management. Our audit was designed in accordance with auditing standards generally accepted in the United States of America, and provide for reasonable, rather than absolute, assurance that the financial statements are free of material misstatement. 2. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by management are described in the notes to the financial statements. 3. Auditor’s Judgments About the Quality of Accounting Principles We discuss our judgments about the quality, not just the acceptability, of accounting principles selected by management, the consistency of their application, and the clarity and completeness of the financial statements, which include related disclosures. We have reviewed the significant accounting policies adopted by the City and have determined that these policies are acceptable accounting policies. 16

Required Communications (continued) 4. Audit Adjustments We are required to inform the City’s oversight body about adjustments arising from the audit (whether recorded or not) that could in our judgment either individually or in the aggregate have a significant effect on the entity’s financial reporting process. We also are required to inform the City’s oversight body about unadjusted audit differences that were determined by management to be individually and in the aggregate, immaterial. There were no passed adjustments identified during the audit process. 5. Fraud and Illegal Acts We are required to report to the City’s oversight body any fraud and illegal acts involving senior management and fraud and illegal acts (whether caused by senior management or other employees) that cause a material misstatement of the financial statements. Our procedures identified no instances of fraud or illegal acts. 6. Material Weaknesses in Internal Control We are required to communicate all significant deficiencies in the City’s systems of internal controls, whether or not they are also material weaknesses. There were no material weaknesses noted during the audit. 17

Required Communications (continued) 7. Other Information in Documents Containing Audited Financial Statements None. 8. Disagreements with Management on Financial Accounting and Reporting Matters None. 9. Serious Difficulties Encountered in Performing the Audit None. 10. Major Issues Discussed with Management Prior to Acceptance None. 11. Management Representations We will receive certain written representations from management as part of the completion of the audit. 12. Consultation with Other Accountants To our knowledge, there were no consultations with other accountants since our appointment as the City’s independent public accountants. 13. Independence As part of our client acceptance process, we go through a process to ensure we are independent of the City. We are independent of the City. 18

Required Communications (continued) 14. Our Responsibility Related to Fraud • Plan and perform the audit to obtain reasonable assurance that there is no material misstatement caused by error or fraud; • Comply with GAAS AUC 240 “Consideration of Fraud in a Financial Statement Audit”; • Approach all audits with an understanding that fraud could occur in any entity, at any time, by anyone; and • Perform mandatory procedures required by GAAS and our firm policies. Examples of Procedures Performed • Discuss thoughts and ideas on where the financial statements might be susceptible to material misstatement due to fraud; • Understand pressures on the financial statement results; • Understand the tone and culture of the organization; • Look for unusual or unexpected transactions, relationships, or procedures; • Discussions with individuals outside of finance; • Evaluate key processes and controls; and • Consider information gathered throughout the audit. 19

Required Communications-Fraud • Generally provided through weaknesses in internal control Opportunity • Tone at the top is important • We assess controls and tone at the top • Pressure can be imposed due to economic troubles, personal vices and Pressure unrealistic deadlines and performance goals • There are increased pressures due to economy and minimal salary increases Rationalization • Individuals develop a justification for their fraudulent activities • Increased rationalization due to minimal salary increases and less personnel 20

SBC’s Service Pledge to You We will consistently deliver a Quality Product and Quality Service so that we have the opportunity to establish a Quality Relationship with you, allowing us to provide you with Quality Knowledge for your continual success. Only after we have provided you with the knowledge that enables your business to grow and prosper, we have hit the bullseye! Our commitment to you is the execution of our Bullseye Philosophy. We execute this philosophy for every client, on every engagement, every time. 21

Headquarters 200 International Circle • Suite 5500 Hunt Valley • Maryland 21030 (P) 410.584.0060 • (F) 410.584.0061 Branch Office 1299 Pennsylvania Avenue, NW • Suite 1120 Washington • District of Columbia 20004 (P) 202.803.2335 • (F) 202.821.1320