Attachment

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE AGENDA APRIL 17, 2014 - 5:30 P.M. CITY HALL CONFERENCE ROOM 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. AGENDA ADDITIONS/DELETIONS 1. Adoption of Minutes - Regular Meeting of February 27, 2014 2. Review of Kent County 911 Center Visits 3. Discussion of Dover Public Library Operations 4. Review of Committee’s Priorities and Strategies 5. Discussion of Meeting Dates and Times 6. Adjournment /dd C:\Users\mkelsall@dover.de.us\Desktop\PACKETS\04-17-2014 F&OA.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.

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE The Financial and Operational Advisory Committee Meeting was held on February 27, 2014 at 5:00 p.m. with Chairman Holden presiding. Members present were Councilman Hutchison, Dr. Newton, Mr. Larson (departed at 5:05 p.m.), and Mr. Smith (arrived at 5:13 p.m.). AGENDA ADDITIONS/DELETIONS By unanimous consent, the agenda was approved as presented. Adoption of Minutes - Regular Meeting of January 30, 2014 Mr. Hutchison moved for approval of the Regular Meeting Minutes of January 30, 2014, seconded by Dr. Newton and unanimously carried. Mr. Larson informed members that, following the Committee meeting on December 13, 2013, he thoroughly reviewed the material provided by staff. Although he was selected to serve on the Committee because of his previous position as Controller General for the State of Delaware, he explained that he was not familiar enough with the City of Dover, nor could he acquire enough knowledge regarding the City in the next three (3) to five (5) months, to provide helpful input regarding the City’s budget. He expressed his opinion that the City’s budget concerns could be best addressed through meetings of Council members and staff. He stated that, prior to the meeting, he spoke to Council President David Bonar and informed him that he no longer wished to serve on the Committee. Mr. Hutchison thanked Mr. Larson for his service. Discussion of City of Dover and Kent County 911 Dispatch Services Mr. Holden reminded members that during their meeting of January 30, 2014, a question was raised as to whether there was a duplication of 911 services provided by Kent County and the City of Dover. As a result, representatives of the Dover Fire Department, Dover Police Department, and Kent County were invited to attend this evening’s meeting in order to discuss 911 dispatch services. Representatives in attendance included Chief Matthew Carey, Dover Fire Department; Chief James Hosfelt, Dover Police Department; Colin Faulkner, Director of the Kent County Department of Public Safety and Division of Emergency Management; and Kevin Sipple, Assistant Director of Kent County Public Safety Division of Emergency Communications. Chief Carey expressed his concerns regarding the Delaware State News article, “Panel meets to improve Dover’s governing structure,” dated January 31, 2014 (Attachment #1). He stated that, as Fire Chief, he is responsible for 190 living members, 70 of whom are still active. He indicated that the Committee’s comments in the newspaper stating that there were issues with having a volunteer Fire Chief may not have been intended to be hurtful or portrayed as bad; however, they were passed along to him. Chief Carey reminded members that the City of Dover is the only capital in the United States protected by a 100% volunteer fire department, and that when such comments are made, whether intended for good or bad, this sends shock waves through the Fire Department. He informed members that, in accordance with the recommendations of the Ad Hoc Haggerty & Haggerty Review Committee regarding the Dover Fire Department and the City of Dover that were accepted by City Council on May 26, 2009, the Fire Chief is the direct liaison to the City of Dover. Chief Carey requested that members direct all related questions and concerns to him.

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 2 [City Clerk Office Note: Subsequent to the meeting, members were provided the Independent Accountant Report, Haggerty & Haggerty Joint Committee (City of Dover and Dover Fire Department) Recommendation (Attachment #2).] Responding to Chief Carey’s request for an explanation regarding the comments expressed in the newspaper article, Dr. Newton explained that, living in the City of Dover, this was her first experience with a City that did not have a paid fire department. She stated that she was curious as to why the City had a paid Fire Marshal and Police Department but the Fire Department was volunteer. Dr. Newton explained that the topic was very interesting to her, since she teaches government and wanted to have a better understanding in order to explain the City of Dover to her students. She stated that there was no intent to insult to the Fire Department or any of the volunteers. She expressed her opinion that, in a perfect world, the Fire Department would be full time and paid. Responding to Dr. Newton, Chief Carey stated that she did not understand the repercussions that her comments would have throughout the Fire Department. He explained that members of the Fire Department take a pride in the level of fire protection that is provided to the City. For comparison, Chief Carey informed members that the City of Wilmington has six (6) engines and two (2) ladder trucks and it costs Wilmington $22,500 to operate for a 24-hour period, excluding overtime and benefits. During the recent fire at Kirby & Holloway Family Restaurant, the Dover Fire Department responded with six (6) engines and two (2 ) ladder trucks, but since the responders were 100% volunteer there was no cost to the City of Dover. Dr. Newton clarified that she did not mean that the Dover Fire Department shouldn’t be volunteer, but that it should be recognized more for its service. In response to Chief Carey’s request for an explanation regarding the comments relayed in the newspaper article, Mr. Holden explained that during the Committee meeting on January 30, 2014, he expressed his opinion that, compared to other cities, the Dover Fire Department is a great financial bargain for the City and that in examining the City in total, the Fire Department’s services are like a financial contribution to the City every day. Mr. Holden further explained that his comment referencing Tammany Hall had nothing to do with the Fire Department, but was related to elected public officials and was made during conversations pertaining to the City organizational structure. Mr. Holden indicated that he Fire Department was discussed in regard to the 911 issues, but not in a negative regard at all. Responding to Mr. Holden, Chief Carey stated that as long as Committee members are committed to a 100% volunteer fire department, he would consider the issue closed. Mr. Holden stated that the Committee members had a large responsibility to determine whether or not the City had gotten away from basic principles and to report back to the City Council with recommendations for items to examine and provide possible suggestions for change. Chief Carey stated that he understood that the Committee had a large task ahead of them, and that he was present only to address his concerns with the Fire Department. He introduced Mr. Patrick Smith, Administrative Assistant, who works Monday through Friday from 8:00 a.m. to

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 3 4:30 p.m., and Mr. Jake Shepherd, Fire Dispatcher, who also works full time. Chief Carey informed members that both Mr. Smith and Mr. Shepherd were recently certified in Emergency Fire Dispatch (EFD) and are now able to answer 911 calls. Chief Carey provided members with a Station 1 Weekly Duty List (Attachment #3); Dover Fire Department Study, Expenses/Balance Sheet, as of January 31, 2013 (Attachment #4); and Annapolis Fire Department Study (Attachment #5). Referring to the Station 1 Weekly Duty List, he stated that four (4) full-time dispatchers work at Fire Department Station No. 1, located at 103 S. Governors Avenue. He noted that the items on the Dispatcher Station Duties Check Off List are extremely important to the safety of all of the firefighters. These tasks, including maintaining the apparatus and equipment and identifying and fixing as many problems as possible, are performed by the dispatchers on a daily basis. Chief Carey indicated that the volunteers run more than 1,000 calls per year, attend at least a few of the monthly meetings each year (depending on their level of membership), and are required to stay up to date with training; therefore, assigning station duties to the volunteers would push them away. As a result, the station duties are handled by the dispatchers in between emergencies and phone calls. Chief Carey stated that the fire dispatchers are also irreplaceable inside the building in regard to security. He stated that the City of Dover has been great to the Fire Department in providing millions of dollars worth of equipment, and precautionary steps had been taken through the installation of camera systems; however, given the location of Station No. 1, it would be irresponsible to not have someone in the building. Chief Carey reviewed the 2013 Dover Fire Department Study, noting that the Fire Department responds to a wide variety of calls and the emergency dispatchers provide assistance to each individual caller. He stated that this issue was brought up a few years ago and, at that time, members of the Fire Department made it clear that they want and need the dispatchers in the fire station. Chief Carey expressed his comfort in knowing that when he calls the Fire Department, the dispatchers on the other end can provide assistance since they are familiar with his policies and are able to prompt him through situations. In response to Mr. Holden, Chief Carey explained that there are four (4) dispatcher positions, and that the employees work “four (4) on and four (4) off” schedule rotations, consisting of two (2) 10-hour days and two (2) 14-hour nights. He stated that, earlier in the day, he received approval to hire a fifth dispatcher position for Station No. 2, which would relieve overtime problems the Department is experiencing from a shortage of manpower and also provide another certified person. Chief Carey noted that this dispatcher would also be provided with a list for checking the equipment at Station No. 2 since there are several million dollars worth of equipment at that station as well. He expressed his appreciation for the support provided to the Fire Department by the City of Dover. Dr. Newton questioned what could help the Fire Department work more efficiently, have a more streamlined process, or make things easier/better. Responding, Chief Carey stated that additional people and money would make things better for the Fire Department.

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 4 Mr. Holden questioned whether the dispatchers at the Fire Department receive only fire-related calls, and how the calls are directed through the telephone system. In response, Chief Carey explained that cell phone calls to 911 within the City of Dover are directed to the Dover Police Department dispatch center; however, a cell phone call may hit a tower in Cape May, New Jersey or Sussex County, Delaware. Landline calls to 911 are directed to the Dover Police Department dispatch center, and if the call is fire related, the Dover Police dispatchers confirm the address and forward the call to the Fire Department for a dispatcher to EFD, following the steps to mitigate and respond to the incident. Additionally, he explained that the fire district extends beyond the limits of the City of Dover and the Fire Department leans on Kent County for assistance. There are situations when a 911 call hits a tower outside of Kent County, and when Kent County receives the call, the dispatcher will proceed to EFD the call and then subsequently provide the information to the Dover Fire Department. Responding to Mr. Holden, Chief Carey stated that the Kent County 911 Center handles all ambulance dispatch services. Although he felt this was something that the Fire Department could explore for the future, Chief Carey expressed his opinion that Kent County had perfected this process. Additionally, he stated that it would probably cost the City of Dover a lot more money to for the dispatchers to receive Emergency Medical Dispatch (EMD) certification and, with an increase in call volume related to ambulance calls, the dispatchers would not be able to continue to perform the duties associated with inspecting the fire apparatus and equipment. He noted that he did not work with the ambulance service enough to speak on this matter. In response to Mr. Holden, Chief Carey clarified that the Dover Fire Department does receive police and ambulance calls, as well as calls for other fire districts and the calls are then transferred to the appropriate agency. Responding to Dr. Newton, Chief Carey confirmed that transferring calls does cause a delay in response time. Mr. Holden questioned whether any of the fire dispatchers were also members of the Dover Fire Department. In response, Chief Carey stated that Mr. Jake Shepherd is a member and was the Department’s Fireman of the Year for 2013; the Senior Dispatcher, Greg Parsell, is a member of the Smyrna Fire Company; Chris Jacobs is a member of the Dover Fire Department, although he is not very active anymore; and Alex Carrow is an Assistant Chief with the Clayton Fire Company. Chief Carey stated that there are also two (2) part-time dispatchers, one (1) who is a supervisor at the Sussex County Emergency Center and a past Chief of Georgetown Fire Company, and the other, Mr. Trey Small, who was previously a full-time dispatcher at the Dover Fire Department and is now a career fire fighter in Ann Arundel County, Maryland. Chief Carey noted that the dispatchers are a well rounded group who are able to provide input and suggestions based on their personal experience. Mr. Holden questioned whether there was a formal structure for sharing information between the various fire companies. Responding, Chief Carey stated that the fire service is very political and “cliquey.” There are 18 companies in Kent County and each operates differently. He expressed his opinion that there would be no way to hold the fire companies accountable other than for the State to change their funding. Chief Carey noted that the Dover Fire Department would not be able to

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 5 survive without the support of the City of Dover. The City provides $283,000 annually for the Department to operate, in addition to purchasing the Department’s equipment and providing for the maintenance of Station No. 2. In response to Mr. Holden’s question regarding which of the City’s retirement plans the fire dispatchers participate in, Chief Carey stated that he was uncertain and would yield that question to the union president. Responding to Dr. Newton regarding first responder requirements, Chief Carey stated that the Dover Fire Department responds if called, but only responds to an accident if there is a report of someone trapped in a vehicle. He explained that the Department is lucky because Dover Police officers are typically on scene within one (1) to two (2) minutes and able to provide the Fire Department with a brief description, which allows the Department to make a quick decision to prevent sending out fire trucks when they are not necessary. He stated that, following the Sandy Hook school shooting, the Police and Fire Department developed a plan for mass casualty incidents. Chief Carey informed members that the Dover Fire Department has the most certified Emergency Management Technicians (EMTs) in the State of Delaware; however, the City contracts Emergency Management Services (EMS) and the Fire Department could never take on that additional responsibility. Chief Carey invited members to stop by anytime for a tour of the firehouse. Mr. Colin Faulkner, Director of the Kent County Department of Public Safety and Division of Emergency Management, informed members that the Kent County 911 Center was internationally recognized. He stated that the Center has five (5) to six (6) dispatchers on duty at all times and because it is also a joint center with the Delaware State Police, there are typically at least a total of 11 dispatchers on duty. Mr. Faulkner explained that Kent County dispatches 17 of the 18 fire departments in the County for approximately 6,000 fire calls per year, as well as approximately 23,000 ambulance and paramedic calls. Additionally, the State Police dispatch for the Delaware Department of Natural Resources and Environmental Control (DNREC). Mr. Faulkner stated that the County uses a template for dispatching for standardization. Mr. Faulkner stated that all of the County dispatchers, including the Police dispatchers, are EMD and EFD certified. While the County does not have a police standard, the dispatchers do work with the State Police, and can manage their calls when necessary since all of the dispatchers in the department are cross-trained. He explained that it is not uncommon, since so many people have cell phones, for the Center to receive a surge of 40 - 50 calls to report one (1) accident and it is helpful to have 11 dispatchers on duty to manage those calls. Mr. Faulkner stated that the County has a console located in the back of the Center which provides additional space for call takers during major events, like snowstorms or hurricanes, for which they can anticipate a surge in call volume. Mr. Faulkner informed members that the County 911 Center moved from the County Courthouse to its current location in 1998 and has managed to update all of the equipment for the Center, including the CAD system. He stated that the County works with the State and the State 911 Board

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 6 to ensure that the Center meets the standard expected of a 911 center, and expressed his opinion that the County does a very good job. Responding to Mr. Holden, Mr. Faulkner explained that most of the ambulances which the County dispatches are volunteer ambulances, although some of the volunteer companies do have paid crew members because the call volume is so high. He stated that the City of Dover has a contract for ambulance service, so the Dover Fire Department does not manage the ambulance service. Mr. Faulkner stated that most of the ambulance services are part of a fire company except Dover and Smyrna, noting that the American Legion operates the ambulance service in Smyrna. He explained that a lot of the fire companies have a first responder program, so they send a piece of equipment to a scene to provide assistance until such time as an ambulance or a paramedic can get there. Mr. Faulkner stated that the paramedics are also manned 24/7 in the County, operating from three (3) stations: one (1) in Harrington, one (1) at the headquarters in Dover, and one (1) in Smyrna. Mr. Holden questioned if there were criteria for differentiating between sending an ambulance versus paramedics. In response, Mr. Faulkner explained that, as an internationally recognized EMD center, the County has established standards for determining the level of deployment. When a call comes in to the 911 Center, one (1) dispatcher automatically starts “EMDing” the call by asking questions, while another dispatcher is on the other line listening and dispatching. He stated that the dispatchers’ procedures are very in-depth. Mr. Faulkner explained that if a caller has fallen and hurt their foot, the dispatcher will determine very quickly that only an ambulance is required. However, if a caller reports that they were outside shoveling snow and started to experience chest pain, an ambulance and a paramedic would be dispatched. When the dispatcher EMDs a call, they are also able to provide pre-arrival instructions. Mr. Faulkner stated that there have been instances in which dispatchers have delivered babies or taught individuals how to perform CPR over the phone. The Center has also been able to steer rescue boats to abandoned ships in the Delaware Bay. He noted that the County is extremely proud of the EMD service because lives can now be saved as soon as a call comes in, as opposed to when medics and/or police arrive at a scene. Mr. Faulkner extended an invitation for any Council or Committee members to tour and observe the Kent County 911 Center, noting that it is very impressive to watch the dispatchers manage calls, especially during a surge. He stated that the dispatchers are very good at their jobs and are masters of multitasking. Responding to Mr. Holden, Mr. Faulkner stated that the modern, nationwide trend in 911 centers is toward centralization and that dispatchers like having everyone in the same location. He explained that if every fire department in Kent County established its own 911 center, Kent County would be underserved. Mr. Faulkner credited the City of Dover for having one (1) fire dispatcher on duty at a time, noting that, personally, he would not want that type of responsibility, especially during a multiple alarm fire, but that the City dispatchers handle it well. In response to Mr. Holden, Mr. Faulkner explained that the dispatch system is a statewide system and the County adheres to State dispatch standards. He stated that the dispatch system was like the paramedic program, in that it is a statewide program but each County runs their own program.

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 7 Dr. Newton questioned whether there was anything Mr. Faulkner would change in order to streamline the County’s process. Responding, Mr. Faulkner reiterated that the national trend is toward centralization. Mr. Kevin Sipple, Assistant Director of Kent County Public Safety Division of Emergency Communications, agreed with Mr. Faulkner’s comments. He noted that when residents of the City of Dover call 911 they reach the Dover Police Department and if the caller requires EMS, they are transferred to the Kent County 911 Center and the dispatcher has to start the process from the beginning. Mr. Sipple stated that the County has had a good working relationship with the Delaware State Police for 30 years. He expressed his opinion that consolidation is not a bad thing. Mr. Sipple explained that the City of Dover dispatchers could simply move into the County 911 Center, like the State Police; the County would not have to absorb the services. He stated that having the State Police in the Center is very beneficial and they work very well together. Mr. Sipple noted that the County serves as backup for the Dover Police and Fire Departments, as well as Sussex County. He stated that the County 911 Center has the capabilities to provide assistance during a surge, and if any of these entities need to move into the Center they can. Mr. Sipple explained that the County was currently dispatching for the Dover Fire Department due to a radio issue. He also noted that, last year, the Dover Police dispatchers worked out of the County 911 Center for more than a week, while their dispatch center was under construction, and the information sharing and operations ran well. During that time, there was an armed robbery involving three (3) individuals at South State Street and Lebanon Road and within five (5) minutes the individuals were apprehended. Mr. Sipple noted that part of the reason for the fast response time was due to the fact that the Dover and State Police dispatchers were working in the same room, heard the same call at the same time, and all units were dispatched simultaneously. He expressed his opinion that the Dover Police and Fire Departments do an outstanding job, but noted that having everyone in the same room, seems to work better. Responding to Mr. Smith, Mr. Sipple stated that no conflicts were experienced during the time when the facility was shared. He explained that there are 18 consoles in the communication center and on a normal day there are 11 dispatchers on duty, leaving seven (7) consoles vacant, which are present in case the City of Dover or Sussex County 911 have to fold down. He stated that the County has the surge capacity to bring agencies in and to work in that environment. Mr. Sipple informed members that the County dispatches for 14 EMS stations and 17 fire departments and follows the standards for time limits, etc. for all of those agencies. He stated that the County prides itself on its accreditation. The Center was sixth in the world to be internationally recognized as an accredited center for fire, which Mr. Sipple attributed to the hard work of the dispatchers. He noted that the County had received a press release on Monday, February 24, 2014, stating that the Center had reached the reaccreditation process, which validated that they are performing according to international standards. He stated that, the reaccreditation process required that the Center meet 20 points of accreditation and send 20 random calls for review to ensure protocols are followed properly. Mr. Sipple stated that the County was also the 29th center in the world to reach EMS accreditation. He noted that State of Delaware legislation requires all medical 911 centers to be accredited. He explained that the accreditation process must be repeated every

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 8 three (3) years, is similar to the Commission on Accreditation for Law Enforcement Agencies, Inc. (CALEA) process for police departments and is validation from outside the County government that the Center is providing the proper service to the citizens of the County. Hypothetically, in terms of financial arrangements, Dr. Newton questioned whether there would be any cost to the City of Dover if the space were shared. Responding, Mr. Faulkner stated that when the City folds down into the County there is no cost involved. However, he explained that the County has a contract with the Delaware State Police which includes very nominal costs that are funded through the State 911 Board based on a standard formula. Mr. Sipple noted that the contract was put into place when the dispatchers moved into their current building and the costs are related to the lockers, paving, shared refrigerators, etc. at the facility. Mr. Holden questioned the costs for the City of Dover in terms of dispatching. In response, Mr. Scott Koenig, City Manager, explained that the concept of a dispatch consolidation and alternate ways to dispatch had been topics of discussion among City staff since July 2011. He stated that the matter had absolutely nothing to do with dissatisfaction with the level of service being provided by employees, it was driven by the opportunity to more efficiently use scarce dollars. Both the Police and Fire Departments are General Fund expenses and City of Dover has been discussing the instability of the General Fund for more than three (3) years. With regard to the fire dispatch service, Mr. Koenig explained that there were five (5) budgeted dispatcher positions, four (4) of which were currently filled and one (1) for which recruitment had been authorized. The police dispatch service includes a 911 supervisor as well as 12 budgeted full-time communication operators/dispatchers, one (1) of which was authorized last year and began in December 2013. Additionally, Mr. Koenig noted that when the 911 Supervisor is not available, a sergeant oversees the dispatch center; however, the sergeant’s costs would not be included with the costs in terms of dispatching. Mr. Koenig informed members that, in 2011, he met with Police Chief James Hosfelt; Deputy Chief Paul Bernat; Jack Fortney, who was serving as Fire Chief at that time; and the Human Resources Director to discuss the concept of a consolidated dispatch. He explained that the City runs one (1) console at the Fire Department and one (1) at the Police Department and at some point the consoles will have to be upgraded; therefore, staff was considering the possibility of consolidating the City’s dispatch services at the Police Department. Mr. Koenig noted that the last time the Police Department console was upgraded, it cost several hundred thousand dollars, some of which may have been offset by County funds or some emergency communication funds. Staff had discussed the possibility of receiving an increase in 911 funding as a result of consolidating the police and fire dispatch services; however, it was Mr. Koenig’s belief that, following their meeting, the Police Chief had investigated and determined that the City would not be able to obtain additional funding, based on the number of calls. Mr. Koenig stated that during their meeting in 2011, the Fire Department had expressed concern regarding building and vehicle maintenance, which were reiterated by Chief Carey this evening. Additionally, he noted that the Police Department expressed that having a dispatch was a “force multiplier,” because the officers are familiar with the dispatchers and know their voices and personalities, which the officers felt provides an added level of support. He stated that the Fire Department also conveyed that the volunteers like knowing the individual dispatchers. Mr. Koenig

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 9 indicated that the question remained as to whether these preferences were enough to maintain the current approach to dispatch operations. Mr. Koenig explained that his long-term goal was to consolidate the dispatchers, and since there were three (3) vacant positions in the Fire Department in September 2012, a decision was reached between himself and the Police and Fire Chiefs that all new dispatchers hired, for police and fire, would go though the same testing and background checks to ensure that the dispatchers would all be qualified to work at the Police Department if they were consolidated. He stated that these criteria were implemented for the last few dispatchers hired. Mr. Koenig stated that during the discussions in September, 2012, the issue of building and apparatus maintenance and security was a primary factor and there were also concerns as to whether the Haggerty & Haggerty agreement was being followed. At that time, he and the Chiefs met with the dispatchers to inform them of his intent to consolidate and the new background check and testing criteria. Mr. Koenig stated that members of Council had expressed that they did not want any employees to lose their jobs, so if an employee could not qualify to work at the Police Department, he would be responsible for finding them another position within the organization. Mr. Koenig stated that, subsequent to the discussions with the dispatchers, the Dover Fire Department held a meeting and informed him that they were not supportive of consolidation and requested a meeting with City Council since, in their opinion, this was not the City Manager’s decision because the Haggerty & Haggerty agreement outlined the relationship between the Fire Department and City Council. Mr. Koenig explained to members that, in 2012, Chief Hosfelt indicated that the Police Department would need five (5) additional dispatchers in order to consolidate, based on the call volume. As a result, Mr. Koenig determined that consolidation would have resulted in an increase in costs in order to provide five (5) additional dispatchers and address the building maintenance for the Fire Department; therefore, he made the decision to abandon the idea but to keep it as a long-term goal as possible opportunities arose in the future. Mr. Koenig stated that, since 2012, Kent County dispatch has expanded and upgraded their facilities, and he has had brief concept discussions with the County Administrator regarding the possible transfer of part or all of the fire dispatch to the County, and the County Administrator indicated that it would not be difficult for the transfer to occur. Mr. Koenig explained that he had a similar discussion with Chief Carey and if the dispatch positions were transferred to the County, he would still need to account for the building maintenance for the Fire Department. Mr. Koenig explained to members that it is difficult to have an open and honest discussion because comments are taken negatively; however, the City has scarce dollars and a multimillion dollar deficit forecast, so he needs to determine what the best solution will be for the future as the City continues to grow. While Mr. Koenig concurred with Mr. Holden’s assessment that the value of the volunteer fire service is a significant dollar amount, as an administrator, it is his responsibility to determine how to keep the volunteer service in place and use resources and dollars most efficiently.

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 10 Chief Carey reiterated that several years ago an agreement was established as a result of the Haggerty & Haggerty report which stated that the fire dispatchers were to be assigned to the Fire Department/station and that the Fire Chief would report to the City Council President; however, he indicated that there is ongoing confusion and frustration in regard to whom the Fire Chief should submit requests for funding or employees. Mr. Holden stated that the Committee is attempting to examine the City’s finances because the City is facing an approximate $7.5M deficit in the next three (3) years. He stated that Vallejo, California was currently facing a similar situation and, although they recognize that they have a great police force, they are unable to continue to fund it and are going to have to lay off the entire police department. Referring to various recent newspaper articles pertaining to the financial problems of several governmental agencies (Attachment #6), Mr. Holden stated that this is a systemic, nationwide problem but, fortunately, the City of Dover had anticipated it and was working to develop a solution. He stated that the Committee would develop and vote on a list of recommendations for consideration by City Council. Mr. Holden questioned whether the Haggerty & Haggerty report/agreement was developed by paid consultants. Responding, Mr. Koenig stated that a report was prepared as the result of a financial audit, and a consultant was hired by City Council. Mrs. Traci McDowell, City Clerk, clarified that subsequently to City Council’s acceptance of the Haggerty & Haggerty report, an Ad Hoc Haggerty & Haggerty Review Committee was established to develop an agreement. In response to Mr. Holden, Mrs. McDowell confirmed that the agreement had not been codified; however, all of the recommendations were approved by City Council. Referring to the Haggerty & Haggerty agreement, Mr. Jason Osika, former Chief for the Dover Fire Department, stated that an audit was performed for the City of Dover at an approximate cost of $45,000 - $55,000 and, based upon those results, an Ad Hoc Haggerty & Haggerty Review Committee was formed that included members of the Fire Department and City Council as well as City staff. After a year-long process, several key points were agreed upon and the agreement was accepted by members of the Fire Department and City Council. Mr. Holden stated his understanding that since the agreement had not been codified, the City could hire a second consultant and the agreement could be amended without having to repeal the original agreement. Referring to the City Council minutes of May 26, 2009, Mr. Koenig stated that the motion of City Council was to accept the recommendations of the Ad-Hoc Haggerty & Haggerty Review Committee, and this motion was carried by a roll call vote of six (6) yes and three (3) no. Mr. Holden clarified that he did not intend to try to undo the agreement at this time. Mr. Hutchison reminded those present that the Ad Hoc Financial and Operational Advisory Committee was established as a fact finding group to work with staff, the Mayor, and members of City Council to review each department, as well as the income and expenses of the entire City, and

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 11 to develop recommendations. He expressed his opinion that with everyone working together the City could make positive changes to tighten up and correct the City’s financial problems. Mr. Hutchison explained that, as a member of City Council, he had requested the creation of this Committee to ensure that the commitments made to the employees and retirees are fulfilled. He expressed his appreciation of all of the City’s emergency responders, noting that they are the “best of the best,” and stated that the Committee would be examining every department within the City. Police Chief James Hosfelt provided an overview of the Dover Police Department Communications Section, noting that it is a full service 911 center with 12 full-time dispatchers and is equipped to handled emergency calls, including fire and police. He stated that there are three (3) dispatchers on duty for each of the four (4) daily 12-hour rotating shifts, and dispatchers work two (2) weeks of day work and two (2) weeks of night work. Chief Hosfelt explained that in addition to handling approximately 10,000 calls for service per month, the dispatchers provide support to the officers, who generate approximately 35,000 - 36,000 complaints per year. The dispatchers assist by monitoring the downtown security cameras; executing arrest paperwork, including entering warrants into the appropriate system; and helping the desk sergeant to monitor prisoners via security monitors. Chief Hosfelt stated that the Police Department can house up to eight (8) prisoners in individual cells and up to 20 in group cells at any given time. Chief Hosfelt agreed with Mr. Faulkner’s comments regarding the benefits of centralization; however, he was unsure whether the County would be able to absorb 10,000 additional calls per month. He stated that the Police Department would still need the employees to carry out its functions, whether they are located in the Police Department or centralized at the County Center. Responding to Dr. Newton, Mr. Faulkner reminded members that although the County dispatchers are cross-training with the State Police, the County dispatchers only handle dispatch for fire, ambulances and paramedics. He stated that the City of Dover would need to consult with the State Police in terms of the additional calls that they are capable of managing. Mr. Holden questioned whether the communications systems for the City and State police officers allowed officers to communicate in the field. Responding, Chief Hosfelt confirmed that the City and State Police were able to communicate in the field. He also stated that the State and City Police share dispatch services and communicate quite often because of shared boundaries and resources. In response to Dr. Newton, Chief Hosfelt stated that there was no financial impact as a result of the shared communications since it is done out of necessity. Ms. Christina Kober, City of Dover Police Department 911 Supervisor, explained that the one (1) difference between the City of Dover and State Police is that the City is a self-input agency, meaning that the City enters its information for stolen vehicles and guns, warrants, validations, etc., whereas the State Police information is inputted from the State Police headquarters. She stated her opinion that it would be a burden to give the State Police dispatchers additional paperwork.

AD HOC FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE ORGANIZATIONAL MEETING OF FEBRUARY 27, 2014 PAGE 12 Review of Committee Priorities and Strategies Mr. Holden noted that it can be difficult for members of the Committee, who have not previously been directly involved with the City, to understand how things work. He requested that the City Manager and Controller/Treasurer provide the numbers for all of the utility services provided by the City, including water, sewer, electric, and trash collection, as well as other comparable figures available from other municipalities and private corporations. He explained that his intent was for the Committee to review this information in an effort to determine how much responsibility each employee is carrying financially, in terms of expense and revenue. Mr. Holden stated that the object is to maintain a viable City, not to scare employees, noting that the employees are as important to the City as anything else. Mr. Holden stated that, at the next meeting, he would like to begin to examine the whole picture of the departments, and then look at each department individually. Mr. Jason Osika, Vice President of the Dover Organization of Employees (DOE), questioned how discussions of the 911 centers became a top priority for the Committee. Responding, Mr. Holden explained that 911 was not necessarily a top priority. He stated his opinion that the Fire Department funding was nominal; however, members reviewed the City’s organizational structure during the Committee meeting of January 30, 2014, and did not fully understand how the City and County fire and police dispatch services melded together and whether there was any overlap. Since the topic came up and was a current item of discussion, members chose to look at it first. Discussion of Meeting Dates and Times Mr. Holden stated that a review of each department would require a lot of preparation by the City Manager and Controller/Treasurer; therefore, members of the Committee did not schedule a date for their next meeting. Mr. Hutchison moved for adjournment, seconded by Dr. Newton and unanimously carried. Meeting adjourned at 6:32 p.m. D. Wayne Holden Chairman DWH/TM/dd/js S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Misc-Minutes\FINANCIAL AND OPERATIONAL ADVISORY COMMITTEE\02-27-2014 Financial and Operation Advisory Committee.wpd Attachment Attachment #1 - Delaware State News article, "Panel meets to improve Dover's governing structure," dated January 31, 2014 Attachment #2 - Independent Accountant Report, Haggerty & Haggerty Joint Committee (City of Dover and Dover Fire Department) Recommendation Attachment #3 - Station 1 Weekly Duty List Attachment #4 - Dover Fire Department Study, Expenses/Balance Sheet, as of January 31, 2013 Attachment #5 - Annapolis Fire Department Study Attachment #6 - Newspaper articles pertaining to the financial problems of several governmental agencies, provided by Mr. Holden

ATTACHMENT #1 F&OA Committee Meeting of 02-27-2014 ATTACHMENT #1 F&OA Committee Meeting of 02-27-2014

ATTACHMENT #2 F&OA Committee Meeting of 02-27-2014 Independent Accountant Report Haggerty & Haggerty Joint Committee (City of Dover and Dover Fire Department) Recommendation The firm of Haggerty and Haggerty, Public Accountants and Management Consultants, was commissioned by city council to review funding provided to the Dover Fire Department from the City of Dover. Upon completion of the review both members of city council and the fire department raised concerns about funding allocated to the fire department and current procedures. A joint committee of council members and fire department personnel was created to review and recommend policies, procedures, and standards dealing with City of Dover financial contributions to the Dover Fire Department. These recommended policies, procedures, and standards will allow for improved fire department operations, and provide a transparent monitoring of allocated funding. After numerous meetings, the committee has developed the following proposed agreement. The committee firmly stands behind this agreement as a means to improve the working relationship between the city council and the fire department. 1. City of Dover Employees: a. All current and future City of Dover employees assigned to the Dover Fire Department will remain City of Dover employees assigned to the Dover Fire Department. b. All items pertaining to City of Dover employees will remain under the city budget, and will follow the current budgeting and financial procedures. These items are listed under 110-100-514.10 and include, but are not limited to, salaries, overtime, temporary help, FICA taxes, health insurance, LID insurance, workers compensation, educational assistance, and pension. c. The City of Dover will cover all upgrades, maintenance, and repairs needed to the Dover Fire Department communications center. This includes any upgrades needed to allow the City of Dover employees to effectively complete their duties. d. All City of Dover employees assigned to the Dover Fire Department will remain under the authority of the company elected volunteer Fire Chief. With the approval of city council a Supervisor / Administrative Assistant position will be created to fill the vacancy of the current fire department administrative assistant. If approved by city council this position will be tasked with the supervision of the fire dispatchers, and will act as the Fire Chief’s administrative assistant. The company elected volunteer Fire Chief will supervise the new position. e. The company elected volunteer Fire Chief; while reporting directly to the City Council President, will consult with the City Manager in an advisory role on matters of personnel policy as set forth in the Employee Handbook, Labor Contracts, and other adopted personnel policies of the City of Dover.

2. The Dover Fire Department will follow the City of Dover budgeting process. After completion of the fiscal year budget and adoption by City Council, the Dover Fire Department budget will be allocated to the department in equal quarterly financial contributions on or before July 31, October 31, January 31, and April 30. All personnel costs as outlined in item 1 of this agreement are not included in the quarterly allotment. 3. The company elected volunteer Fire Chief will report to Council President and will act as the liaison to the City of Dover from the Dover Fire Department. 4. All City of Dover financial contributions to the Dover Fire Department will be placed in a financial account maintained by the Dover Fire Department. This account will be for the sole purpose of managing City of Dover financial contributions. 5. Monthly financial reports from the Dover Fire Department will be provided to the City Council and Mayor. The report will cover all incoming / outgoing monies from the aforementioned account for the calendar month prior. Each report will be included with the monthly Fire Chief’s report. The report format shall be approved by city council and Fire Chief. 6. The annual financial review, prepared for the State of Delaware, shall be provided to the city council. If requested by City Council, the Dover Fire Department will have an opinion audit conducted at the end of the fiscal year. The audit will be completed through an accountant firm of the City Council’s choice. All associated costs of an audit will be paid for by the Dover Fire Department. 7. The Dover Fire Department will follow State of Delaware purchasing policies and procedures which all fire departments in the State of Delaware are required to follow. 8. Any capital needs beyond the City of Dover’s yearly financial contributions that may arise will be brought to City Council for approval through a Committee Action Form (CAF). The Fire Chief will submit an updated 10 year Capital Investment Plan (CIP) in the January Fire Chief’s report. All CIP allocations will be paid directly by the City of Dover to the financial institutions. 9. The Dover Fire Department will continue to utilize the City of Dover for the tax exempt rates.

ATTACHMENT #3 F&OA Committee Meeting of 02-27-2014

ATTACHMENT #4 F&OA Committee Meeting of 02-27-2014

ATTACHMENT #5 F&OA Committee Meeting of 02-27-2014

ATTACHMENT #6 F&OA Committee Meeting of 02-27-2014

CITY OF DOVER COMPARISON OF LIBRARY EXPENSES FISCAL 2013 TO FISCAL 2014 Expenses by month FY 2013 July-12 August-12 September-12 October-12 November-12 December-12 January-13 February-13 March-13 April-13 May-13 June-13 110-1500-523-10-11 SALARIES LIBRARY 36,661.70 49,920.47 48,508.57 52,220.03 85,907.33 51,990.74 51,206.05 57,593.93 51,173.88 (77,570.84) 62,691.03 71,286.82 110-1500-523-10-12 OVERTIME LIBRARY - - - - - 1,910.61 - 928.18 1,159.60 869.14 - - 110-1500-523-10-13 TEMPORARY HELP LIBRARY - - - - - - - - - 130,940.09 15,569.49 11,842.10 110-1500-523-10-14 FICA TAXES LIBRARY 2,666.82 3,645.99 3,537.98 3,826.63 6,391.32 3,952.89 3,762.17 4,321.85 3,812.81 3,958.54 5,784.03 6,119.23 110-1500-523-10-15 HEALTH INSURANCE LIBRARY 8,845.55 8,845.55 8,845.55 8,845.55 8,845.55 8,845.55 8,277.38 8,277.42 9,530.76 9,530.84 10,094.81 9,530.84 110-1500-523-10-16 L I D INSURANCE LIBRARY 327.07 327.07 327.07 308.78 308.78 308.78 280.73 280.73 301.85 301.85 296.74 279.11 110-1500-523-10-17 WORKERS COMPENSATION LIBRARY 194.29 264.58 257.11 276.79 455.30 285.67 271.39 310.16 277.37 287.47 414.74 434.52 110-1500-523-10-18 EDUCATIONAL ASSISTANCE LIBRARY - - - - - - - - - - - - 110-1500-523-10-19 PENSION LIBRARY 1,601.71 2,138.09 2,130.72 2,130.72 3,203.45 2,130.72 1,972.02 1,972.02 2,029.86 2,087.00 3,152.16 2,525.03 110-1500-523-10-20 OPEB LIBRARY 2,818.33 3,910.50 3,734.42 3,459.78 5,189.67 3,459.78 3,311.95 3,259.96 3,355.80 3,447.60 5,309.10 4,701.07 110-1500-523-20-22 OFFICE SUPPLIES LIBRARY - 906.27 497.30 39.00 54.82 - - 56.65 (56.65) - - - 110-1500-523-20-23 PRINTING AND DUPLICATING LIBRARY 148.24 132.54 74.17 250.00 313.08 81.54 646.54 197.54 81.54 81.54 81.54 - 110-1500-523-20-26 PROGRAM EXPENSES/SUPPLIES LIBRARY 1,184.70 312.43 172.50 789.91 364.30 (2,159.48) 1,600.00 748.00 - - - 180.78 110-1500-523-20-31 BOOKS LIBRARY 3,900.84 4,269.10 4,798.89 12,644.66 20,687.75 11,179.65 (3,583.93) - - 30.77 - 69.93 110-1500-523-20-32 SECURITY/SAFETY MATERIALS LIBRARY - - - 288.00 - - - - - - - - 110-1500-523-20-37 COMPUTER SOFTWARE LIBRARY - - - - - - - - - - - 41.50 110-1500-523-20-38 COMPUTER HARDWARE LIBRARY - - - 1,574.27 326.07 - 218.09 - 270.73 48.89 - 5,471.57 110-1500-523-20-46 CITY BLDG MAINT SUPPLIES LIBRARY 1,430.17 1,124.98 2,755.45 1,086.34 1,011.49 235.31 327.55 200.88 12.67 239.85 3.41 150.34 110-1500-523-20-47 AUDIO VISUAL SUPPLIES LIBRARY 728.88 371.12 - - - - - - - - - - 110-1500-523-20-58 WATER/SEWER LIBRARY 556.59 277.79 295.83 198.99 212.92 131.56 131.56 149.64 158.68 443.81 185.80 185.80 110-1500-523-30-21 TELEPHONE/FAX LIBRARY 210.52 211.21 546.58 331.60 368.29 271.94 307.29 294.98 292.28 336.80 212.60 416.66 110-1500-523-30-23 ELECTRICITY LIBRARY 3,350.55 3,590.05 3,352.77 2,013.40 7,628.63 6,964.43 7,582.26 7,637.78 14,020.83 7,512.36 8,029.75 9,517.04 110-1500-523-30-24 HEATING OIL/GAS LIBRARY - 26.00 - 1,157.35 1,533.17 2,485.28 2,711.54 3,252.75 2,987.83 2,164.64 1,239.12 1,729.99 110-1500-523-30-27 SUBSCRIPTIONS AND DUES LIBRARY 451.52 235.05 - - 9,076.26 1,190.97 35.00 - - - - - 110-1500-523-30-28 TRAINING/CONF/FOOD/TRAVEL LIBRARY - 1,500.00 (1,500.00) - - - - - - - 200.00 - 110-1500-523-30-31 CONTRACTUAL SERVICES LIBRARY - 2,029.72 - 2,116.91 1,729.80 2,068.08 2,040.77 2,078.55 4,007.15 2,226.20 2,102.96 4,290.80 110-1500-523-30-61 OFF EQUIP/REPAIRS & MAINT LIBRARY 2,500.00 - - - - - - - - - - - Total 67,577.48 84,038.51 78,334.91 93,558.71 153,607.98 95,334.02 81,098.36 91,561.02 93,416.99 86,936.55 115,367.28 128,773.13

CITY OF DOVER COMPARISON OF LIBRARY EXPENSES FISCAL 2013 TO FISCAL 2014 Expenses by month FY 2014 July-13 August-13 September-13 October-13 November-13 December-13 January-14 February-14 March-14 April-14 May-14 June-14 110-1500-523-10-11 SALARIES LIBRARY 32,177.39 44,802.95 43,099.38 43,162.60 69,339.92 45,036.96 43,236.97 43,236.94 43,236.97 - - - 110-1500-523-10-12 OVERTIME LIBRARY - - - - 1,229.86 1,215.59 - 1,139.38 1,041.82 - - - 110-1500-523-10-13 TEMPORARY HELP LIBRARY 6,550.65 13,294.87 8,614.08 8,777.38 13,946.41 13,258.74 9,253.54 9,393.49 9,780.51 - - - 110-1500-523-10-14 FICA TAXES LIBRARY 2,775.96 4,207.44 3,719.03 3,736.37 6,222.55 4,315.57 3,780.35 3,878.22 3,900.36 - - - 110-1500-523-10-15 HEALTH INSURANCE LIBRARY 11,322.13 12,187.31 12,187.31 12,184.61 12,184.61 12,184.61 12,184.61 12,184.61 12,198.11 - - - 110-1500-523-10-16 L I D INSURANCE LIBRARY 287.98 289.66 289.66 289.66 297.79 297.79 297.79 297.79 297.79 - - - 110-1500-523-10-17 WORKERS COMPENSATION LIBRARY 187.04 283.46 249.74 250.92 408.80 290.92 253.87 260.62 262.13 - - - 110-1500-523-10-18 EDUCATIONAL ASSISTANCE LIBRARY - - - - - - - - - - - - 110-1500-523-10-19 PENSION LIBRARY 1,556.52 2,079.43 2,082.32 2,082.32 3,129.41 2,086.44 2,086.44 2,086.44 2,086.44 - - - 110-1500-523-10-20 OPEB LIBRARY 3,458.73 4,611.64 4,611.64 4,611.64 4,619.00 6,939.54 4,626.36 4,626.36 4,626.36 - - - 110-1500-523-20-22 OFFICE SUPPLIES LIBRARY 363.41 420.24 119.80 577.06 - - 32.28 - (16.14) - - - 110-1500-523-20-23 PRINTING AND DUPLICATING LIBRARY 193.71 81.54 81.50 93.77 93.77 175.31 233.98 201.65 93.77 - - - 110-1500-523-20-26 PROGRAM EXPENSES/SUPPLIES LIBRARY 1,333.14 979.32 452.66 352.87 - 15.36 66.00 - - - - - 110-1500-523-20-31 BOOKS LIBRARY 16,558.62 6,674.43 6,369.31 18,851.54 3,574.95 1,866.62 68.67 - - - - - 110-1500-523-20-32 SECURITY/SAFETY MATERIALS LIBRARY 112.50 1,087.50 - - - - - - - - - - 110-1500-523-20-37 COMPUTER SOFTWARE LIBRARY - 150.00 - 850.00 - - - - - - - - 110-1500-523-20-38 COMPUTER HARDWARE LIBRARY - 32.29 442.99 1,051.36 - 5,249.00 - 90.87 72.02 - - - 110-1500-523-20-46 CITY BLDG MAINT SUPPLIES LIBRARY 387.30 1,241.33 565.00 1,678.63 210.62 398.98 850.41 - 970.65 - - - 110-1500-523-20-47 AUDIO VISUAL SUPPLIES LIBRARY 801.72 255.07 - - - - - - - - - - 110-1500-523-20-58 WATER/SEWER LIBRARY 185.80 231.00 203.88 203.88 176.76 158.68 167.72 158.68 176.76 - - - 110-1500-523-30-21 TELEPHONE/FAX LIBRARY 320.15 326.27 298.91 350.51 298.97 324.05 342.17 298.92 353.52 - - - 110-1500-523-30-23 ELECTRICITY LIBRARY 8,845.98 9,118.77 8,260.18 7,756.09 6,712.71 6,242.32 6,109.23 5,867.32 5,518.51 - - - 110-1500-523-30-24 HEATING OIL/GAS LIBRARY - 638.74 739.50 1,123.92 1,744.74 1,248.50 2,053.05 2,824.86 2,488.98 - - - 110-1500-523-30-27 SUBSCRIPTIONS AND DUES LIBRARY 1,302.94 330.80 423.64 414.90 6,641.78 1,645.28 138.40 100.00 - - - - 110-1500-523-30-28 TRAINING/CONF/FOOD/TRAVEL LIBRARY - - - - - - - - - - - - 110-1500-523-30-31 CONTRACTUAL SERVICES LIBRARY 149.84 2,220.61 2,301.23 2,238.14 2,302.37 2,202.42 2,282.22 175.33 4,006.55 - - - 110-1500-523-30-61 OFF EQUIP/REPAIRS & MAINT LIBRARY - 2,500.00 - - - - - - - - - - Total 88,871.51 108,044.67 95,111.76 110,638.17 133,135.02 105,152.68 88,064.06 86,821.48 91,095.11 - - -