Special Council Meeting - Budget Review Minutes and Exhibits 1-5

SPECIAL COUNCIL MEETING BUDGET REVIEW A Special Council Meeting was held on May 29, 2018 at 6:01 p.m. with Council President Slavin presiding. Council members present were Mr. Anderson, Mr. Neil, Mr. Lewis, Mr. Cole, Mr. Polce, Mr. Hare, and Mr. Lindell. Mr. Sudler was absent. Staff members present were Mrs. Mitchell, Mr. Dill, Mr. Hugg (departed at 6:44 p.m. and returned at 6:53 p.m.), and Mrs. McDowell. Mayor Christiansen was also present. AGENDA ADDITIONS/DELETIONS Mr. Lewis moved for approval of the agenda, seconded by Mr. Neil and unanimously carried. INTRODUCTION AND PRESENTATION OF FISCAL YEAR 2019 RECOMMENDED BUDGET Council President Slavin expressed his thanks for the work that had been put into this budget, noting that he thought that this was perhaps the most solid and transparent budget that he had seen in all the years that he had served. He stated that this budget hit all the marks that Council asked of staff, explaining that it was the result of Council providing strategic direction and staff doing the heavy lifting to deliver on that vision. Mr. Slavin noted that there are no proposed tax increases, and the only increases in rates are supported by the data from the rate studies that Council commissioned so that the City can satisfy the rate payers and bond covenants. He stated that it was as transparent a document as he could have hoped for and is certainly as transparent a document as the citizens should expect from our government. Mr. Slavin extended his thanked to Mrs. Donna Mitchell, City Manager, and all of the City of Dover staff for the tremendous effort and product, noting that he thought this was the result of the very mature and stable government that the City currently has. HIGHLIGHTS OF OVERALL BUDGET Mrs. Donna Mitchell, City Manager, thanked members of Council and all of the City’s committees for their support. She introduced Mr. Jeff Dill, noting that he had previously worked in the Finance Department and was now serving as the City’s Budget Analyst. Mrs. Mitchell expressed thanks to Mrs. Sharon Duca, Director of Public Works/City Engineer, for the excellent work she did in helping her analyze the sanitation services. She also thanked the entire sanitation crew, explaining that she appreciated all of the support that they gave her while she was analyzing the options regarding the City’s sanitation services. Mrs. Mitchell reminded members that the City’s motto is “Community Excellence through Quality Service.” She reviewed a poster (Exhibit #1) depicting the “D.O.V.E.R.” acronym she developed, explaining that Dover employees have dedication, ownership, vision, excellence, and reliability and provide community service, public safety and public utilities. Mrs. Mitchell advised members that this would expand to town hall meetings that she was going to hold to talk to all employees and let them know how much the City appreciates the support that they give the City and its residents. She also reviewed a poster of the City’s mission statement (Exhibit #2), noting that this budget was developed with those statements in mind.

SPECIAL CITY COUNCIL MEETING - BUDGET REVIEW MAY 29, 2018 PAGE 2 Mrs. Mitchell reviewed a presentation entitled “City of Dover, Fiscal Year 2019 & Beyond, Proposed Budget, Budget Highlights & Discussion Points, May 29, 2018,” budget pages 9-27. She reminded members that the discussion during the Council Workshop of January 26, 2018 included strategic goals and the future of the City, and staff tried to incorporate that into this budget, so it goes beyond 2019. Mrs. Mitchell provided members with handouts entitled “City of Dover, Draft Budget - Fiscal Year 2018/2019, Challenges Going Forward” (Exhibit #3) and “City of Dover, Comparative Personnel Table” (Exhibit #4). ELECTRIC TARIFFS AND POWER COST ADJUSTMENT (PCA) CREDIT Mrs. Donna Mitchell, City Manager, reviewed a presentation entitled “City of Dover, Budget Workshop, Fiscal Year 2018-2019, Electric Fund Rates, PCA Credit & Future Planning,” budget pages 29-33. Mrs. Mitchell advised members that the budget for the Power Plant may decrease prior to adoption of the budget. She explained that she had asked the Plant Manager to provide her with an implementation plan regarding the recommendation to decrease their staff by six (6) people by May 31, 2018, noting that the draft budget maintained the current number of positions. SANITATION COST OF SERVICE RECOMMENDATION Mrs. Donna Mitchell, City Manager, advised members that the concept of looking at outsourcing sanitation was to contract out sanitation services and redeploy personnel to other divisions, where needed, and create a separate parks and recreation grounds and maintenance crew. She explained that there were three (3) options: 1) sell outright including equipment, 2) establish a franchise with one (1) vendor, with the City managing the contract, like the recycling contract, and 3) maintain the current service. Mrs. Mitchell noted that one vendor has a customer service team that can handle all customer service inquiries, so if the City selected a vendor like that, it would also cut down on the office staff workload. Mrs. Mitchell explained that the impact on operations that staff considered included significantly less fleet maintenance, a reduction in administrative and clerical functions and long-term capital costs, and the potential to bring police vehicle maintenance in-house or reduce fleet staff. She stated that the City would have to contract out for picking up animal carcasses, as well as code enforcement debris and the related charges to property owners. Mrs. Mitchell noted that some of the concerns were customer expectations and service levels. She stated that outright sale may create model providers and route confusion. She explained that could be avoided with a franchise agreement because a contractor would be expected to understand the City street and alley network. Mrs. Mitchell advised that the Delaware Solid Waste Disposal agreement and the recycling contract are tied together and both expire in 2021. Mrs. Mitchell reviewed a presentation entitled “City of Dover, Budget Workshop, Fiscal Year 2018- 2019, Sanitation Cost of Service Recommendation,” budget pages 33-38.

SPECIAL CITY COUNCIL MEETING - BUDGET REVIEW MAY 29, 2018 PAGE 3 STORMWATER UTILITY RECOMMENDATION Mrs. Donna Mitchell, City Manager, noted that copies of the “City of Dover, Stormwater Utility Feasibility Study,” the Council Committee of the Whole/Utility Committee minutes of July 12, 2018, as well as the “Annual Expenditures Summary and Budget Projections, Stormwater Utility” were included in the back of members draft 2018/2019 budget binders (Exhibit #5). Mrs. Mitchell reviewed a presentation entitled “City of Dover, Budget Workshop, Fiscal Year 2018- 2019, Sanitation Cost of Service Recommendation,” budget pages 39-45. CLOSING REMARKS - PLANNING FOR THE FUTURE Mrs. Donna Mitchell, City Manager, referring to page 46 of the budget, advised that the demands on resources attributed to growth and aging infrastructure continue to create serious challenges for the City’s citizens and staff. She stated that the City’s current revenue levels do not support the funding needs for long-term improvements, and the staffing levels needed to complete the required vegetation maintenance each year for City property, right away maintenance, sidewalks, alleys, and City buildings are insufficient. Mrs. Mitchell informed members that asset maintenance plans and replacement schedules are nonexistent for City assets in several areas, including parks, substations, stormwater, etc. She stated that a greater focus on police and code enforcement activities has been emphasized by the past and present Council members. Mrs. Mitchell reminded members that the Garrison Oak Technical Park was improved with an investment of $14.5M of infrastructure; however, the City has not yet received a positive return on that investment. She noted that the City currently budgets $201,000 for mowing and ditch maintenance. Mrs. Mitchell stated that while she understands the need to continue to improve City amenities, the City needs to first catch up on all the deferred maintenance that has resulted from tight budgets over the past 10 years. Mrs. Mitchell advised members that there is a need to address staffing in area in which maintenance has fallen behind. She indicated that practices and staff need to be addressed to ensure that there are enough resources for operations to continue on a daily basis. Mrs. Mitchell explained, for example, that there are 10 employees in the Sanitation division, all 10 of which are needed to run all of the bulk, automated, and handheld trucks every day, so if someone takes leave, the supervisor steps in to run the truck. She advised that when that happens, two (2) people are off and things do not get done. Mrs. Mitchell explained that the City needs to transition from being reactive to being proactive and anticipating future needs. She stated that the proposed budget takes one step toward achieving that objective with the Parks and Recreation maintenance crew and shoring up the Central Services Department. Mrs. Mitchell noted that, after filling vacant positions and a review of all operations, she will be meeting with department heads to discuss where there are deficiencies as a result of staffing or where the City can shift operations or staff if practical to do so. By unanimous consent, the meeting recessed at 6:44 p.m. and reconvened at 6:51 p.m. OPERATING DEPARTMENT AND DIVISION SUMMARIES, FUND SUMMARIES AND RESERVE ACCOUNTS, AND REVIEW OF CAPITAL INVESTMENT PLAN SUMMARIES Operating Department and Division Summaries, Fund Summaries and Reserve Accounts information, and Capital Investment Plan Summaries were provided to members.

SPECIAL CITY COUNCIL MEETING - BUDGET REVIEW MAY 29, 2018 PAGE 4 Mr. Slavin advised members that this would be an appropriate time for them to ask any questions regarding the budget summary and overall highlights provided by Mrs. Mitchell. Mr. Hare asked if the business retention rate for electric included the deal that the City made with Kraft. Responding, Mrs. Mitchell explained that the business retention rate had expired in 2016 and Council would need to decide whether the City was going to continue it or leave it expired. In response to Mr. Hare regarding funding for streets, Mrs. Mitchell clarified that the Community Transportation Fund (CTF) is a separate fund. Referring to page 314 of the budget, she explained that there was $500,000 budgeted in the current fiscal year, as well as the CTF money from both Senator Bonini and Representative Lynn for the former library. Mrs. Mitchell stated that next fiscal year there is another $500,000 budgeted in the CTF, noting that this is the typical amount earmarked each year. She noted that Senator Bonini has two (2) additional $500,000 increments in the next two (2) fiscal years as well. Referring to the Street Program, Mrs. Mitchell advised that the General Fund money had been deferred for the current fiscal year, explaining that staff was just now getting the bids out because they were dealing with whether or not to use prevailing wage. As requested by Mayor Christiansen, Mrs. Mitchell reminded members that the decision on the Davis-Bacon prevailing wage is that the City is moving forward with the bidding with prevailing wage. She explained that to do it without prevailing wage, staff would have to manage each street as a separate contract for the CTF money and the City money because you cannot co-mingle, and that would cause too much of an administrative issue. Mrs. Mitchell stated that last year projects were bid out as both prevailing and non-prevailing wage and the prevailing wage created an approximate 14% increase in the projects; however, it was decided to bid them all as prevailing wage in the future, to prevent the administrative hardship it would create on staff. Responding to Mayor Christiansen, Mrs. Mitchell advised that she wants quality work whether or not the City pays Davis-Bacon wages. She confirmed that, with the projected increase, the City would be guaranteed that the contractors would do excellent, or better than excellent, work and City inspectors would follow up on performance. Mr. Neil noted that, in reviewing the departmental budgets, it appeared that the City was upgrading the telephone systems in several offices and also adding GPS or updating radio systems in the field offices. He commended staff for making these updates and asked Mrs. Mitchell to provide an overview since it would be impacting many departments. In response, Mrs. Mitchell stated that she was proposing adding GPS to all City vehicles, except police vehicles because she wanted to find out what technology was already in those vehicles. In regard to the telephones, she explained that there are increased telephone expenses, as well as an update regarding the allocation of all of the telephone equipment. Mrs. Mitchell stated that the allocation of the telephone equipment was maintained by the Finance Department and due to staff turnover, the allocation sheet did not get updated. She advised that staff performed an audit of all of the allocations and revised budgets accordingly, so the budget reflects the change in accounting rather than new equipment. Mr. Hare moved for approval of Fiscal Year 2018/2019 budget, as presented, seconded by Mr. Polce.

SPECIAL CITY COUNCIL MEETING - BUDGET REVIEW MAY 29, 2018 PAGE 5 Mr. Anderson moved to suspend the rules to allow for public comment from Mr. Les Blakeman, seconded by Mr. Lindell and unanimously carried. Mr. Les Blakeman stated that he was a little disappointed that the original agenda had a discussion of retiree benefits, however, it was not included on the revised agenda. He noted that he had been advised that if there is any kind of increase for the pensioners, it should be discussed during the budget review, so they know how to budget for it. Mr. Blakeman stated that he was concerned that it didn’t take place, explaining that whether they get an increase or not is an issue that he would at least like to have a discussion about at some point. Responding, Mr. Slavin asked that this item be placed on a Legislative, Finance, and Administration Committee agenda to determine if the City can do something midyear. Mr. Neil, referring to page 227 of the budget, noted that the City was replacing Windows XP with Windows 7, which was another outdated version of Windows. He noted that Microsoft was not supporting Windows 7 anymore and asked why the City was not updating to Windows 10. In response, Mrs. Mitchell explained that she thought that the narrative was not updated, however, she would check with the IT Director to make sure. Mr. Lindell stated that he noticed that the City was running a deficit in the General Fund this fiscal year and explained that he did not want to repeat the same situation that happened a few years ago, when there was a delay in looking at taxes and then a crisis hit and nothing else could be cut from the budget, so taxes had to be raised all at once. Mr. Slavin stated that it was his understanding that the City was not running at a deficit, that the revenues are more than the expenditures, however, it does not include the carry forward budget. Responding, Mrs. Mitchell stated that the City’s expenditures exceed its revenues. She advised that the biggest part of that exceedance is that the capital asset transfer from the general fund for capital projects is more than last year. Mrs. Mitchell stated that she plans to address that issue with the storm water utility, by pulling the Municipal Separate Storm Sewer System (MS4) out of the General Fund, so it does not continue long term. She explained that otherwise, the City would be looking at a seven (7) to nine (9) cent tax increase. The motion for approval of the Fiscal Year 2018/2019 Budget, as presented, was carried by a roll call vote of seven (7) yes (Neil, Lewis, Cole, Polce, Hare, Lindell, and Slavin), one (1) no (Anderson), and one (1) absent (Sudler). Mr. Slavin reminded everyone that the First Reading of the 2018/2019 City of Dover Budget Ordinances was scheduled for June 11, 2018, and the Final Reading and Council action would take place on June 25, 2018. Mr. Neil moved for adjournment, seconded by Mr. Hare and unanimously carried. Meeting adjourned at 7:03 p.m. TRACI A. McDOWELL CITY CLERK

SPECIAL CITY COUNCIL MEETING - BUDGET REVIEW MAY 29, 2018 PAGE 6 All ordinances, resolutions, motions, and orders adopted by City Council during their Special Meeting of May 29, 2018, are hereby approved. ROBIN R. CHRISTIANSEN MAYOR /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Council-Minutes\2018\05-29-2018 Special Council Meeting - Budget Review Minutes.wpd Exhibits Exhibit #1 - Poster depicting the “D.O.V.E.R.” acronym Exhibit #2 - Poster of the City’s mission statement Exhibit #3 - Handout entitled “City of Dover, Draft Budget - Fiscal Year 2018/2019, Challenges Going Forward” Exhibit #4 - Handout entitled “City of Dover, Comparative Personnel Table” Exhibit #5 - Copies of the “City of Dover, Stormwater Utility Feasibility Study,” the Council Committee of the Whole/Utility Committee minutes of July 12, 2018, as well as the “Annual Expenditures Summary and Budget Projections, Stormwater Utility”

EXHIBIT #1 Special Council Meeting - Budget Review of 05/29/2018 DOVER Employees providing COMMUNITY SERVICE, PUBLIC SAFETY and PUBLIC UTILITIES D O V E R

EXHIBIT #2 Special Council Meeting - Budget Review of 05/29/2018 The City of Dover is a place where people want to live! Through the team effort of its elected officials, employees and citizens, Dover is a clean and safe community, with a future of balanced growth and opportunity where all citizens are heard, enjoy a high quality of life, and diversity is valued.

EXHIBIT #3 Special Council Meeting - Budget Review of 05/29/2018 City of Dover Draft Budget - Fiscal Year 2018/2019 Challenges Going Forward Statistics 2000 2009 2019 Square Acres 14,379 14,905 15,192 +150 Garrison Oak Technical Park +12 Shutte Park Facilities unavailable 115,940 166,102 + New Library, less old library + Pitts Center, less Dover Park Parks Major 3 3 3 Minor 22 22 25 Streets (miles) 148 159 169 Water Utility Wells 21 22 21 Water Towers 6 6 7 Mains (linear miles) 157 216 225 Meters 11,004 unavailable 12,556 Wastewater Pump Stations 33 42 44 Mains (linear miles) 140 185 191 Electric Substations 14 14 14 Service area (sq. miles) unavailable 68 68 O/H Distribution lines (linear miles) unavailable 217 179 U/G Distribution lines (linear miles) unavailable 262 287

EXHIBIT #4 FY 2019 DRAFT ANNUAL OPERATING BUDGET - DOVER, DELAWARE Special Council Meeting - Budget Review of 05/29/2018 City of Dover Comparative Personnel Table 2001-2000 2009-2010 2018-2019 FY00 vs. FY19 FY10 vs. FY19 DEPT/DIVISION BUDGET BUDGET PROPOSED CHANGE CHANGE CITY CLERK 3.0 4.0 4.0 1.0 0.0 CITY MANAGER 2.0 5.0 5.0 3.0 0.0 CUSTOMER SERVICES 16.0 15.0 16.0 0.0 1.0 ECONOMIC DEVELOPMENT 0.0 3.0 0.0 0.0 (3.0) FACILITIES MANAGEMENT 9.0 12.0 5.0 (4.0) (7.0) FINANCE 6.0 8.0 8.0 2.0 0.0 FIRE DEPARTMENT 6.0 6.0 5.0 (1.0) (1.0) FLEET MAINTENANCE 4.0 6.0 6.0 2.0 0.0 GROUNDS 12.0 16.0 13.0 1.0 (3.0) HUMAN RESOURCES 3.0 4.0 3.0 0.0 (1.0) INFORMATION TECHNOLOGY 7.0 8.0 4.0 (3.0) (4.0) CODE ENFORCEMENT 0.0 5.0 5.0 5.0 0.0 INSPECTIONS 11.0 7.0 6.0 (5.0) (1.0) LIFE SAFETY 0.0 4.0 3.0 3.0 (1.0) LIBRARY 13.0 17.5 13.0 0.0 (4.5) MAYOR 1.0 1.0 1.0 0.0 0.0 PARKS AND RECREATION 6.0 5.0 9.0 3.0 4.0 PLANNING & CDBG 3.0 7.0 6.0 3.0 (1.0) POLICE - CIVILIAN 29.0 29.0 33.0 4.0 4.0 POLICE - LAW ENFORCEMENT 81.0 90.0 101.0 20.0 11.0 PROCUREMENT AND INVENTORY 7.0 8.0 5.0 (2.0) (3.0) PUBLIC WORKS - ADMINISTRATION 3.0 4.0 6.0 3.0 2.0 PUBLIC WORKS - ENGINEERING 2.0 3.0 3.0 1.0 0.0 PUBLIC WORKS - CONSTRUCTION & INSPECTION 14.5 0.0 3.0 (11.5) 3.0 SANITATION 13.0 13.0 10.0 (3.0) (3.0) STREETS 12.0 11.0 8.0 (4.0) (3.0) TAX ASSESSOR 2.0 4.5 3.0 1.0 (1.5) GENERAL FUND AND CDBG TOTAL 265.5 296.0 284.0 30.5 (12.0) ELECTRIC ADMINISTRATION 3.0 4.0 3.0 0.0 (1.0) ELECTRIC SYSTEM OPERATIONS 4.0 5.0 5.0 1.0 0.0 ELECTRIC ENGINEERING 15.0 12.5 10.0 (5.0) (2.5) ELECTRIC T & D 34.5 27.0 24.0 (10.5) (3.0) ELECTRIC TREE TRIMMING 5.0 0.0 0.0 (5.0) 0.0 METER READING - CUSTOMER SERVICE 5.0 4.0 4.0 (1.0) 0.0 ELECTRIC FUND TOTAL 66.5 52.5 46.0 (14.0) (6.5) WATER/WASTEWATER ENGINEERING 0.0 8.0 5.0 5.0 (3.0) WATER CONSTRUCTION 0.0 7.0 0.0 0.0 (7.0) WATER MANAGEMENT 8.5 5.0 7.0 (1.5) 2.0 WASTEWATER MANAGEMENT 8.5 11.0 10.0 1.5 (1.0) WATER TREATMENT PLANT 4.0 10.0 13.0 9.0 3.0 METER READING - CUSTOMER SERVICE 2.0 0.0 0.0 (2.0) 0.0 WATER/WASTEWATER FUND TOTAL 23.0 41.0 35.0 18.0 (6.0) TOTAL FULL-TIME PERSONNEL 355.0 389.5 365.0 34.5 (24.5) *101 Officers; 33 Civilians - 134 Total Employees 2009-2010 2009-2010 2018-2019 DEPT/DIVISION BUDGET BUDGET PROPOSED CHANGE CHANGE PART-TIME PERSONNEL CITY CLERK 0.0 0.0 0.0 0.0 0.0 CITY COUNCIL COMMITTEES 17.0 17.0 17.0 0.0 0.0 CITY MANAGER 0.0 0.0 0.0 0.0 0.0 PLANNING COMMISSION 14.0 14.0 14.0 0.0 0.0 FIRE (5 On Call Dispatchers) 0.0 0.0 5.0 0.0 5.0 PARKS AND RECREATION 14.0 14.0 14.0 0.0 0.0 LIBRARY (w/ 3 CADETS) 12.0 12.0 22.0 0.0 10.0 POLICE CADET PROGRAM 0.0 0.0 6.0 0.0 6.0 PROCUREMENT AND INVENTORY 0.0 0.0 1.0 0.0 1.0 CUSTOMER SERVICES 0.0 0.0 0.0 0.0 0.0 METER READING - CUSTOMER SERVICE 0.0 0.0 1.0 0.0 1.0 HUMAN RESOURCES 0.0 0.0 2.0 0.0 2.0 SUBSTANCE ABUSE GRANT 10.0 10.0 10.0 0.0 0.0 TOTAL PART-TIME PERSONNEL 67.0 67.0 92.0 0.0 25.0 TOTAL PERSONNEL 422.0 456.5 457.0 34.5 0.5

EXHIBIT #5 Special Council Meeting - Budget Review of 05/29/2018 City of Dover Stormwater Utility Feasibility Study Council Committee of the Whole Slide 1

This Evening’s Presentation  Answer the Following Questions: What is a stormwater utility? Where are they being used? Why is the City considering one? What steps have been taken so far?  Describe the Existing Situation Enterprise funds and rate determinations Property characteristics Levels of service  Provide Potential Stormwater Utility Structure Preliminary rates and credits Assumptions Fee examples Slide 2

Rain is natural…. Slide 3

Stormwater is manmade…. Slide 4

Unmanaged Stormwater  Overtaxes built drainage infrastructure  Causes drainage problems and flooding  Damages public and private property  Erodes streambanks and pollutes waterways  Increases water treatment costs Slide 5

A Stormwater Utility Fund Is…  Stable – Funding does not fluctuate year to year based on prior years’ occurrences.  Adequate – Determined by actual expenditures plus projected future needs.  Flexible – Rates can be adjusted as conditions warrant.  Equitable – Cost is borne by the user based on demand placed on the drainage system. Utilities were recommended by Governor Minner’s Task Force in 2006 as funding vehicle for a comprehensive approach to drainage. Slide 6

Where Are Stormwater Utilities Being Used?  Nearly 1,500 exist in U.S. and Canada  Forty states have at least one  Six states have 100 or more  Average and mean populations – 73,900 and 19,200 Source: 2014 Stormwater Utility Survey – Western Kentucky University Slide 7

Where Are Stormwater Utilities Being Used?  Stormwater utility activities in Delaware  Wilmington and Lewes BPW in place (2006 and 2010)  Newark currently investigating  New Castle County initiated but did not complete Slide 8

Why Is the City Considering a Stormwater Utility?  Address increasing NPDES compliance costs  City needs a compliance-based utility  Provide resources for under-funded programs  Downtown development / watershed-level evaluations  Capital program / system optimization  Comprehensive O&M program / proactive approach  Decrease reliance on General Fund appropriations  No longer adequate to support programs  Results in competing with dissimilar services  Equitable approach fairer to all Slide 9

Why Is the City Considering a Stormwater Utility  Recommendation 6 from Part III – Plan Goals: Utilities from 2008 Comprehensive Plan “Determine the Feasibility of Implementing a Stormwater Utility within the City of Dover”  Nutrient Reducing Recommendation 9 – Stormwater Utility from St. Jones River Pollution Control Strategy “A stormwater utility should be implemented to generate a stable source of funding for stormwater management within the watershed” Slide 10

What Steps Have Been Taken to Date?  Obtained Grant from DNREC to Offset ½ of Study Costs  Assessed City Programs and Expenditures  Evaluated Property and System Mapping  Developed Spreadsheet Model  Calculation of potential rates  Evaluation of various credit opportunities  Sensitivity analysis of options Slide 11

What Steps Have Been Taken to Date?  Public outreach  Citizen survey (continuous since August 12, 2015)  Fact sheets (placed on website August 6, 2015)  Stormwater 101 presentation (placed on website August 6, 2015)  Improved website information based on recommendations Slide 12

Enterprise Funds and Rates  Water and Wastewater Fund  Meter flows and divide total into costs to establish rates  Assess resulting fees on thousand gallon basis  Electric Fund  Meter usage and divide total into costs to establish rates  Assess resulting fees on per kilowatt basis  Stormwater Fund  Cannot meter – need different approach  Assess fees on surrogate basis Slide 13

Stormwater Utility Rates  Primary Foundation  Direct correlation exists between imperviousness and impact  Must Be Equitable  Property owners’ fee proportional to impact on system  Not Administratively Burdensome  Time consuming to determine impact for every lot  Use tiers for single-family lots (80% of total parcels in Dover)  Use square footage for others (83% of total impervious area in Dover) Slide 14

Stormwater Utility Rates = 1 ERU (Equivalent Runoff Unit) 2,200 square feet in Dover Residential = 40 ERUs (less credit) Commercial Slide 15

Existing Property Characteristics Single-family Lots  Tier 1  RG-1, RG-2, RG-3, and RM-1 zoning districts  Average imperviousness = 2,164 square feet  Rounded to 2,200 square feet = 1.0 ERU  Tier 2  RM-2, R-7, and R-8 zoning districts  Average imperviousness = 3,060 square feet or 1.4 ERUs  Tier 3  R-10, R-15, and R-20 zoning districts  Average imperviousness = 4,850 square feet or 2.2 ERUs Slide 16

Existing Property Characteristics All Lots  Commercial 36,385,000 ft2 or 25%  Dover Air Force Base 34,611,000 ft2 or 23%  Office / Institutional 23,855,000 ft2 or 16%  Single-family residential lots 23,844,000 ft2 or 16%  Industrial / Manufacturing 13,971,000 ft2 or 9%  Multi-family and other R Districts 10,783,000 ft2 or 7%  Mobile Home Parks 2,803,000 ft2 or 2%  Agricultural / Open Space 2,204,000 ft2 or 2% Slide 17

Existing Property Characteristics Tax-Exempt Parcels  Dover AFB 34,611,000 sq. ft.  State-owned 6,711,000 sq. ft.  College / University 4,966,000 sq. ft.  Primary or Secondary Education 3,268,000 sq. ft.  City-owned 3,045,000 sq. ft.  Miscellaneous / Unknown 2,727,000 sq. ft.  Religious Organization 2,359,000 sq. ft.  Dover Housing Authority 768,000 sq. ft.  Federally-owned 521,000 sq. ft.  County-owned 475,000 sq. ft.  Health Care Facilities 261,000 sq. ft.  Private / HOAs 228,000 sq. ft. Slide 18

Levels of Service Existing Services  27 employees with varying percentages of dedicated time  Public Works (Streets Division / GIS / Engineering / Administration)  Planning and Inspections  53 vehicles or pieces of equipment  About $375,000 in value  Over $1 million on capital projects per year  Tar Ditch project major undertaking Slide 19

Levels of Service Existing Asset Information INFRASTRUCTURE QTY ACTIVITY (2015) QTY Inspected .79 mi Stormwater Pipe 90 mi Cleaned .62 mi Repaired 19 Stormwater Structures 5,842 Cleaned 496 Stormwater Outfalls 653 Inspected 33 Stormwater Open Channels 9.3 mi Cleaned 1.2 mi Stormwater Management 19 Rehabilitated 6 Facilities Stormwater Management 19 Maintained* 14 Facilities * - Stormwater Management Facilities which are maintained by City staff. Slide 20

Levels of Service “Compliance” Services PERMIT REQUIREMENTS EXISTING (2015) COMPLIANCE 2016 - 2020 City-wide Storm System Asset Not required 20% per year of stormwater structures Management and Inspection Public Outreach Website, Flyers Pre- and Post-Surveys and education campaign; website enhancements Employee Training 1 Training/Year Multiple training sessions; specialized training based on job class; enhanced record keeping Wet Weather Monitoring 2 Industrial Sites (semi- 2 Industrial Sites and 5 Outfalls (semi- annual) annually) Stormwater Management Not required New for 2016 - 2020 Performance Monitoring Plan Outfall Monitoring 5% of Infrastructure 20% of Infrastructure Construction of Stormwater Not required Reduce pollutants (nitrogen, Management Facilities to address phosphorus, bacteria) per permit pollutants Slide 21

Levels of Service “Optimum” Services  Maintenance of Privately-owned SWM Basins  Residential only / in conjunction with credits program  Relieve lay people from responsibility  Better assure water quantity and quality control Slide 22

Levels of Service “Optimum” Services Future Capital Projects  Additional Street, Concrete & Alley Program  City Hall/Dover Library Conveyance System  Drainage Ditch System- Fox Hall, Puncheon Run, White Oak Road  Water Street, Reed Street, and State Street Flooding  The Greens of Dover / Lamplighter Lane  Police Station Basin Retrofit  Persimmon Park Place  Lynnhaven Drive Slide 23

Preliminary Rates and Credits  Existing Program $2.75 / ERU / month  Compliance Level of Service $3.25 / ERU / month  Optimum Level of Service $8.50 / ERU / month  Paying into HOA with SWM Facility 33% Credit  On-site SWM Facility (Non-residential) 33% Credit  Pollution Prevention Plan (Non-residential) 25% Credit  Others to be determined (not included in calculations) Slide 24

Variables That Affect Rates  Exemptions None other than Dover AFB  Impervious cover cap 2,000,000 sq. ft. assumed  Inflation / escalation rates 2% assumed  Allowances for mapping discrepancies  “Filters” for single-family uses in multi-family zones Slide 25

Fee Examples Layout Legend ERU base rate Compliance Level Rate ERU tier rate Compliance Level Rate (based on Tier Group 1, 2, or 3) ERUs Equivalent Residential Units for Commercial, Office, and Industrial Examples Credit 1 Paying into HOA with SWM Facility (33%) Credit 2 Non Residential On-site SWM Facility (33%) Credit 3 Non Residential Pollution Prevention Plan (25%) Final fee* $2.75 / month Existing Level of Service Fee $3.25 / month Compliance Level of Service Fee $8.50 / month Optimum Level of Service Fee * - To reference the costs breakdown, see slide 24 Slide 26

Fee Examples Single-Family Residential Lot Tier 1 ERU factor 1.0 ERU base rate $2.75 / month $3.25 / month $8.50 / month ERU tier rate $2.75 / month $3.25 / month $8.50 / month Credit 1 $0.92 / month* $1.08 / month* $2.83 / month* Final fee $1.84 / month $2.17 / month $5.67 / month * If paying into HOA with SWM basin Slide 27

Fee Examples Single Family Residential Lot Tier 2 ERU factor 1.4 ERU base rate $2.75 / month $3.25 / month $8.50 / month ERU tier rate $3.85 / month $4.55 / month $11.90 / month Credit 1 $1.28 / month* $1.52 / month* $3.96 / month* Final fee $2.57 / month $3.03 / month $7.93 / month * If paying into HOA with SWM basin Slide 28

Fee Examples Single Family Residential Lot Tier 3 ERU factor 2.2 ERU base rate $2.75 / month $3.25 / month $8.50 / month ERU tier rate $6.05 / month $7.15 / month $18.70 / month Credit 1 $2.02 / month* $2.38 / month* $6.23 / month* Final fee $4.03 / month $4.77 / month $12.47 / month * If paying into HOA with SWM basin Slide 29

Fee Examples Commercial ERUs 1,419 ERU rate $2.75 / month $3.25 / month $8.50 / month Subtotal $3,902 / month $4,612 / month $12,062 / month Credit $1,301 / month** $1,537 / month** $4,020 / month** Imp. area 6,668,869 ft2 * Final fee $2,601 / month $3,075 / month Capped imp area 3,122,510 ft2 * $8,042 / month ERU size 2,200 ft2 * Two parcels ** Maintaining SWM basin Slide 30

Fee Examples Office/Institutional ERUs 47 ERU rate $2.75 / month $3.25 / month $8.50 / month Subtotal $129.25 / month $152.75 / month $399.50 / month Credit $0.00 / month $0.00 / month $0.00 / month Imp. area 103,942 ft2 Final fee $129.25 / month $152.75 / month ERU size 2,200 ft2 $399.50 / month Slide 31

Fee Examples Office/Institutional ERUs 329 ERU rate $2.75 / month $3.25 / month $8.50 / month Subtotal $905 / month $1,069 / month $2,797 / month Credit $302 / month $356 / month $932 / month Imp. area 722,972 ft2 Final fee $603 / month $713 / month ERU size 2,200 ft2 $1,865 / month * Maintaining SWM basin Slide 32

Fee Examples Office/Institutional ERUs 53 ERU rate $2.75 / month $3.25 / month $8.50 / month Subtotal $145.75 / month $172.25 / month $450.50 / month Credit $0.00 / month $0.00 / month $0.00 / month Imp. area 116,525 ft2 Final fee $145.75 / month $172.25 / month ERU size 2,200 ft2 $450.50 / month Slide 33

Fee Examples Industrial/Manufacturing ERUs 576 ERU rate $2.75 / month $3.25 / month $8.50 / month Subtotal $1,584 / month $1,872 / month $4,896 / month Credit $528 / month* $624 / month* $1,632 / month* Imp. area 1,267,590 ft2 Final fee $1,056 / month $1,248 / month ERU size 2,200 ft2 $3,264 / month * Maintaining SWM basin Slide 34

Thank You! Slide 35

Contact Information David Athey URS Corporation / AECOM 302-781-5900 david.athey@aecom.com Jason Lyon Dover Department of Public Works 302-736-7025 jlyon@dover.de.us Slide 36

City of Dover, Delawre Annual Expenditures Summary and Budget Projections Stormwater Utility Description FY19 FY20 FY21 FY22 FY23 Public Works Department Director $7,693 $7,924 $8,161 $8,406 $8,658 Public Works Operations Manager $6,646 $6,846 $7,051 $7,263 $7,480 Admin. Assistant $1,955 $2,014 $2,075 $2,137 $2,201 Admin. Assistant $1,795 $1,849 $1,905 $1,962 $2,021 GIS Manager $2,024 $2,084 $2,147 $2,211 $2,277 GIS Technician $1,328 $1,368 $1,409 $1,452 $1,495 Engineer I $20,296 $20,905 $21,532 $22,178 $22,843 DPW Inspector $19,993 $20,593 $21,210 $21,847 $22,502 Environmental Scientist $80,545 $82,961 $85,450 $88,014 $90,654 Water / Wastewater Manager $29,491 $30,376 $31,287 $32,226 $33,193 Construction Manager $11,838 $12,193 $12,559 $12,936 $13,324 Subtotal $183,604 $189,112 $194,786 $200,629 $206,648 Streets Division Street Supervisor $25,840 $26,615 $27,414 $28,236 $29,083 Crew Leader $30,802 $31,726 $32,678 $33,658 $34,668 Lead Laborer $18,980 $19,550 $20,136 $20,740 $21,363 MEO II (Street Sweeper) $71,362 $73,503 $75,708 $77,979 $80,318 MEO II (Street Sweeper) $58,352 $60,103 $61,906 $63,763 $65,676 Sign / Street Painter $17,840 $18,376 $18,927 $19,495 $20,080 MEO I $13,894 $14,311 $14,741 $15,183 $15,638 MEO I $13,894 $14,311 $14,741 $15,183 $15,638 Subtotal $250,966 $258,495 $266,250 $274,237 $282,464 Material / Services Street Sweeping Debris $51,200 $52,736 $54,318 $55,948 $57,626 Leaf Mulch $142,000 $146,260 $150,648 $155,167 $159,822 NPDES Element #1 $13,000 $13,390 $13,792 $14,205 $14,632 NPDES Element #2 $75,000 $77,250 $79,568 $81,955 $84,413 NPDES Element #3 $1,000 $1,030 $1,061 $1,093 $1,126 NPDES Element #4 $10,000 $10,300 $10,609 $10,927 $11,255 NPDES Element #5 $6,000 $6,180 $6,365 $6,556 $6,753 Misc. Street Cleaning Supplies $3,000 $3,090 $3,183 $3,278 $3,377 Storm Sewer Supplies $7,500 $7,725 $7,957 $8,195 $8,441 Ditch Maintenance $80,300 $82,709 $85,190 $87,746 $90,378 Industrial Stormwater NPDES Permit Testing $1,500 $1,545 $1,591 $1,639 $1,688 Sweeper Debris Testing $2,000 $2,060 $2,122 $2,185 $2,251 Leaf Collection Temporary Help $20,000 $20,600 $21,218 $21,855 $22,510 NPDES Training - Environmental Scientist $800 $824 $849 $874 $900 Industrial Stormwater NPDES Permit NOI - William St. $200 $206 $212 $219 $225 Industrial Stormwater NPDES Permit NOI - PWII $200 $206 $212 $219 $225 Subtotal $413,700 $426,111 $438,894 $452,061 $465,623 CURRENT OPERATIONS GRAND TOTAL $848,270 $873,718 $899,930 $926,928 $954,735 CAPITAL PROJECTS Misc. Emergency SW Repairs $73,000 $76,000 $79,000 $82,000 $85,000 Meeting House Branch Improvements $1,100,000 Mirror Lake Drainage Basin Improvements $10,000 $50,000 $350,000 Water Street Flooding Improvements $12,000 $55,000 $500,000 West Street Flooding Improvements $14,000 $60,000 The Greens of Dover / Lamplighter Ln SW Improvements $16,000 $65,000 Reed Street Flooding $18,000 #361 Leaf Vac $70,000 #357 Street Sweeper $200,000 #350 Vac Truck $300,000 Total Capital Projects $1,183,000 $408,000 $148,000 $808,000 $668,000 TOTAL OPERATIONS & CIP COSTS $2,031,270 $1,281,718 $1,047,930 $1,734,928 $1,622,735 5/15/2018 Concept Level Page 1 of 1