Attachment

EXHIBIT #1 Regular Council Meeting of 02/11/2008 WATER QUALITY IMPROVEMENTS CONTACT CHAMBER EFFECTIVENESS UTILITY COMMITTEE PRESENTATION January 14, 2008 Public Utilities Department Water / Wastewater Utilities

BACKGROUND The 2006 Water Quality Evaluation recommended the installation of contact chambers at all deep well sites to assist in stabilizing water chemistry. These chambers were identified as a necessary first step in addressing brown water issues.

BACKGROUND Source water has a natural demand for chlorine which results in chemical reactions. Due to limited piping available onsite from the wells, these reactions were occurring primarily within the distribution system (contributing to brown water issues). The installation of contact chambers at each deep well site provides adequate piping on site for these reactions to occur, prior to entering the distribution system.

ANALOGY Each well site can be likened to a factory, making a product for consumption. When making bread, for example, quality control is performed to ensure that the final product meets established standards. Would you perform quality control on the bread: – after mixing and rising of the bread; or – after mixing, rising and baking of the bread?

ANALOGY Just as baking the bread is a critical part of product development, the chemical reaction with chlorine is a critical part of the development of drinking water. The contact chamber is like the oven allowing for the reactions (baking) to be completed at the well site (factory) rather than within the distribution system (transport).

ANALOGY Performing quality control at the appropriate time ensures a more consistent product enters the market (distribution system) and is provided to the consumer.

CHAMBER #1 – WELL #13R The first contact chamber was installed in 2007 at Well Site #13R (Bayard Avenue). The contact chamber was brought online in December 2007.

CHAMBER #1 – WELL #13R In order to verify the effectiveness of the contact chamber, data was collected before and after the chamber was brought online. Sample Data: – Total Chlorine – amount of combined (reacted) and uncombined (unreacted) chlorine within the water. – Free Chlorine – amount of uncombined (unreacted) chlorine within the water.

PRE-CHAMBER USAGE DATA 4.0 Well #13R: Free/Total Cl2 Prior to Contact Chamber Online 3.5 3.0 2.5 2.0 1.5 Free Cl2 Total Cl2 1.0 Contact time less than 1 minute. 0.5 Reactions occurring within distribution system. Levels difficult to control, subject to distribution system fluctuations. 0.0 11/25 11/27 11/29 12/1 12/3 12/5 12/7 12/9 12/11 12/13

POST-CHAMBER USAGE DATA 4.0 Well #13R: Free/Total Cl2 After Contact Chamber Online 3.5 3.0 Free Cl2 Total Cl2 2.5 2.0 1.5 1.0 Contact time 5 minutes. Reactions occurring within contact chamber (stabilized). 0.5 Levels easier to control, no longer subject to distribution system fluctuations. Only residual (free) chlorine required to meet regulatory standards remaining. 0.0 12/15 12/17 12/19 12/21 12/23 12/25 12/27 12/29 12/31 1/2

MISSION ACCOMPLISHED! SAMPLE DATA CONFIRMS EXPECTED RESULTS ACHIEVED STABILIZED WATER CHEMISTRY ENTERING DISTRIBUTION SYSTEM PRIMARY REACTIONS COMPLETE

MOVING FORWARD All 13 contact chambers must be installed and placed online to realize maximum benefits. – 3 chambers have been installed – 2 chambers are online Anticipated that most of the chambers will be installed and online in FY 2008.

EXHIBIT #2 Regular Council Meeting of 02/11/2008 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1 of 5 The amounts hereinafter named in various City funds are changed from the currently approved revenues/receipts and appropriations to the revised revenues/receipts and revised appropriations for use by the various departments of the Municipal Government for A. GENERAL FUND Current Additions Revised RECEIPTS Budgets (Reductions) Budgets Beginning Balance $ 3,542,086 $ 509,893 $ 4,051,979 Transfer from Realty Transfer Tax Fund 2,650,222 656,385 3,306,607 Transfer in from Parkland Reserve 1,987,200 (1,987,200) - Transfer in from Library Reserve - 41,780 41,780 Net Adjustments $ (779,142) Current Additions Revised EXPENDITURES Budgets (Reductions) Budgets Fire $ 644,773 $ 5,964 $ 650,737 Library 1,132,283 41,780 1,174,063 Transfer to Governmental Capital Fund 4,680,362 (1,933,030) 2,747,332 Transfer to Library Reserve 399,350 449,759 849,109 Budget Balance 2,882,636 656,385 3,539,021 Net Adjustments $ (779,142) B. GOVERNMENTAL CAPITAL FUND Current Additions Revised RECEIPTS Budgets (Reductions) Budgets Transfer from Capital Asset Reserve $ - $ 135,515 $ 135,515 Transfer from General Fund for Projects 4,680,362 (1,933,030) 2,747,332 Transfer in from Parkland Reserve (JWP Cntr) - 2,132,369 2,132,369 Transfer in from Library Reserve - 10,094 10,094 Gifts/Donations (JWP Cntr) - 83,000 83,000 Net Adjustments $ 427,948 Current Additions Revised EXPENDITURES Budgets (Reductions) Budgets Recreation $ 2,135,700 $ 274,839 $ 2,410,539 Library - 10,094 10,094 Streets 511,000 7,500 518,500 Sanitation 502,800 135,515 638,315 Net Adjustments $ 427,948 C. WATER/WASTEWATER FUND Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance - Water $ 2,037,928 $ 182,533 $ 2,220,461 Beginning Balance - Wastewater 1,289,956 (197,224) 1,092,732 Wastewater Adjustment (1,109,481) 88,720 (1,020,761) Net Adjustments $ 74,029 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Balance- Water $ 430,356 $ 182,533 $ 612,889 Balance- Wastewater 566,474 (197,224) 369,250 Balance-Wastewater Adjustment (910,591) 88,720 (821,871) Net Adjustments $ 74,029

D. WATER/WASTEWATER IMPROVEMENT & EXTENSION FUND Current Additions Revised 2 of 5 REVENUES Budgets (Reductions) Budgets Beginning Balance - Water $ 827 $ 274,307 $ 275,134 Beginning Balance - Wastewater 16,502 268,467 284,969 Net Adjustments $ 542,774 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Water $ 2,237,476 $ 241,231 $ 2,478,707 Wastewater 1,496,250 172,004 1,668,254 Balance- Water 453,001 33,076 486,077 Balance- Wastewater 163,604 96,463 260,067 Net Adjustments $ 542,774 E. ELECTRIC FUND Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 7,822,873 $ 458,780 $ 8,281,653 Sales to Customers 93,516,294 (978,750) 92,537,544 Utility Tax 1,599,100 57,200 1,656,300 Duke Contract Revenue 800,000 (800,000) - Net Adjustments $ (1,262,770) Current Additions Revised EXPENSES Budgets (Reductions) Budgets Power Supply $ 60,764,531 $ (270,290) $ 60,494,241 Power Supply Management/Incentive 3,255,038 (255,038) 3,000,000 Capacity Charges 11,493,950 795,543 12,289,493 PJM Charges - Load 2,684,707 1,650 2,686,357 Generation Fuels 2,858,979 691 2,859,670 Capacity Credits (11,933,536) 30,059 (11,903,477) PJM Credits (3,696,990) 2,228 (3,694,762) Utility Tax 1,599,100 57,200 1,656,300 Accounts Receivable Write-Offs 100,000 25,000 125,000 Inventory Write-Offs 100,000 25,000 125,000 Debt Service 3,379,104 (575,000) 2,804,104 Budget Balance 7,908,700 (1,099,813) 6,808,887 Net Adjustments $ (1,262,770) F. ELECTRIC IMPROVEMENT & EXTENSION FUND Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 13,954 $ 1,353,029 $ 1,366,983 Transfer from Depreciation Reserve 4,288,392 411,187 4,699,579 Net Adjustments $ 1,764,216 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Electric Generation $ 377,000 $ 400,000 $ 777,000 Electrical T & D 1,634,250 (7,000) 1,627,250 Electric Engineering 16,046,710 3,713,847 19,760,557 Electric Administration 8,000 17,500 25,500 Electric Metering 28,241 (7,841) 20,400 Budget Balance - Bond Proceeds 9,350,000 (2,198,827) 7,151,173 Budget Balance 153,463 (153,463) - Net Adjustments $ 1,764,216

G. GENERAL FUND CONTINGENCY RESERVE 3 of 5 Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 647,680 $ (2,426) $ 645,254 Net Adjustments $ (2,426) Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 711,180 $ (2,426) $ 708,754 Net Adjustments $ (2,426) H. GENERAL FUND LIBRARY RESERVE Current Additions Revised REVENUES Budgets (Reductions) Budgets Prior Year Balance $ 1,765,470 $ 608,306 $ 2,373,776 General Fund Appropriation 399,350 449,759 849,109 Interest Income 79,000 - 79,000 Net Adjustments $ 2,243,820 $ 1,058,065 $ 3,301,885 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Transfer out - Library related projects/security $ - $ 51,874 $ 51,874 Transfer to Parkland Reserve 334,000 - 334,000 Current Year Balance 1,909,820 1,006,191 2,916,011 Net Adjustments $ 2,243,820 $ 1,058,065 $ 3,301,885 I. WATER/WASTEWATER CAPITAL ASSET RESERVE Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 1,617,841 $ 3,783 $ 1,621,624 Net Adjustments $ 3,783 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 1,663,841 $ 3,783 $ 1,667,624 Net Adjustments $ 3,783 J. WATER/WASTEWATER CONTINGENCY RESERVE Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 228,687 $ 801 $ 229,488 Net Adjustments $ 801 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 240,039 $ 801 $ 240,840 Net Adjustments $ 801 K. ELECTRIC CONTINGENCY RESERVE Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 840,652 $ 6,380 $ 847,032 Net Adjustments $ 6,380 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 878,652 $ 6,380 $ 885,032 Net Adjustments $ 6,380

L. ELECTRIC INSURANCE STABILIZATION RESERVE Current Additions Revised 4 of 5 REVENUES Budgets (Reductions) Budgets Beginning Balance $ 350,000 $ 1,255 $ 351,255 Net Adjustments $ 1,255 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 360,500 $ 1,255 $ 361,755 Net Adjustments $ 1,255 M. ELECTRIC RATE STABILIZATION RESERVE Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 377,981 $ 1,802 $ 379,783 Net Adjustments $ 1,802 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 1,397,981 $ 1,802 $ 1,399,783 Net Adjustments $ 1,802 N. ELECTRIC DEPRECIATION RESERVE Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 13,450,200 $ 84,983 $ 13,535,183 Net Adjustments $ 84,983 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 9,737,808 $ 84,983 $ 9,822,791 Net Adjustments $ 84,983 O. FUTURE CAPACITY RESERVE Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 8,893,070 $ 65,722 $ 8,958,792 Net Adjustments $ 65,722 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 9,294,070 $ 65,722 $ 9,359,792 Net Adjustments $ 65,722 P. MUNICIPAL STREET AID Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 400 $ (254) $ 146 Net Adjustments $ (254) Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 700 $ (254) $ 446 Net Adjustments $ (254)

Q. COMMUNITY TRANSPORTATION FUND Current Additions Revised 5 of 5 REVENUES Budgets (Reductions) Budgets Beginning Balance $ 311,165 $ (2,751) $ 308,414 Net Adjustments $ (2,751) Current Additions Revised EXPENSES Budgets (Reductions) Budgets Construction Purchase $ 1,350,000 $ 55,000 $ 1,405,000 Operating transfer out (Parkland reserve) 55,000 (55,000) - Budget Balance 311,165 (2,751) 308,414 Net Adjustments $ (2,751) R. WORKER'S COMPENSATION FUND Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 1,371,416 $ 75,808 $ 1,447,224 Net Adjustments $ 75,808 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 1,445,961 $ 75,808 $ 1,521,769 Net Adjustments $ 75,808 S. OTHER POST-EMPLOYMENT BENEFITS (OPEB) Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 3,790,513 $ 413,487 $ 4,204,000 Net Adjustments $ 413,487 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Budget Balance $ 3,920,757 $ 413,487 $ 4,334,244 Net Adjustments $ 413,487 T. PARKS & RECREATION RESERVE Current Additions Revised REVENUES Budgets (Reductions) Budgets Beginning Balance $ 1,569,025 $ 205,506 $ 1,774,531 Transfer from Library Reserve 334,000 - 334,000 Transfer from Community Transportation Fund 55,000 (55,000) - Interest Income 30,000 - 30,000 Net Adjustments $ 1,988,025 $ 150,506 $ 2,138,531 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Transfer to General Capital Project Fund (JWP Cntr) $ 1,987,200 $ 145,169 $ 2,132,369 Budget Balance 825 5,337 6,162 Net Adjustments $ 1,988,025 $ 150,506 $ 2,138,531 S. REALTY TRANSFER TAX FUND Current Additions Revised REVENUES Budgets (Reductions) Budgets Realty transfer tax revenue $ 2,650,222 656,385 $ 3,306,607 Net Adjustments $ 656,385 Current Additions Revised EXPENSES Budgets (Reductions) Budgets Transfer to General Fund $ 2,650,222 656,385 $ 3,306,607 Net Adjustments $ 656,385 ADOPTED: FEBRUARY 11, 2008