REGULAR COUNCIL MEETING
The Regular Council Meeting was held on August 9, 2004 at 7:30 p.m. with Council President Williams presiding. Council members present were Mr. Carey, Mr. Pitts, Mr. Sadusky, Mr. Slavin, Mr. Ritter (arrived at 7:20 p.m.), Mr. Salters, and Mr. Ruane. Mr. Hogan was absent.
Council staff members present were Police Chief Horvath, Ms. Russell, Mrs. Mitchell, Mr. Galvin, Deputy Fire Chief Fortney, Mr. DePrima, City Solicitor Rodriguez, and Mrs. Green.
OPEN FORUM
The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Williams declared the Open Forum in session and reminded those present that Council is not in official session and cannot take formal action.
Mr. F. William Mild, IV, 54 Baltusrol Road, advised members that two (2) boy scouts, Andrew Mild and Graham Foresman, from Troop 154 were in attendance to observe the meeting. He noted that they are working on their Citizenship and Community Merit badge, which is a requirement for Eagle Scout.
Mr. DeWitt Peterkin, III, 101 Chatham Court, expressed concerns about the portable smoker located at the Texaco gas station behind his property (across from K-Mart on Route 13). He noted that the portable smoker was due to leave August 29th and stated that he hoped the Council, Mayor, and legal counsel will not permit the smoker next year. Mr. Peterkin noted that he spent most of the summer away because the smoke made him ill.
The invocation was given by Chaplain Dixon, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Mr. Carey moved for approval of the agenda as presented, seconded by Mr. Salters and unanimously carried.
Mr. Salters moved for approval of the consent agenda, seconded by Mr. Carey and carried by a unanimous roll call vote (Mr. Hogan absent).
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JULY 26, 2004
The Minutes of the Regular Council Meeting of July 26, 2004 were unanimously approved by motion of Mr. Salters, seconded by Mr. Carey and bore the written approval of Mayor Speed.
ANNEXATION/REZONING - IRENE D. AND ROBERT M. SADUSKY - 2507 AND 2521 CHESTNUT GROVE ROAD, CONTAINING 2.647+/- ACRES (OWNED BY IRENE D. AND ROBERT M. SADUSKY)
An annexation referendum was held on July 29, 2004, for property located at 2507 and 2521 Chestnut Grove Road, owned by Irene D. and Robert M. Sadusky.
Referendum Results
The City Clerk reported that the referendum was held with four (4) eligible voters. Two (2) votes were cast in favor of the annexation, with zero (0) votes cast against annexation.
Mr. Carey moved to accept the referendum results, seconded by Mr. Salters and unanimously carried.
Annexation
By motion of Mr. Salters, seconded by Mr. Carey, Council adopted the following Resolution by a unanimous roll call vote (Mr. Hogan absent and Mr. Sadusky not voting):
A RESOLUTION APPROVING THE INCLUSION OF AN AREA WITHIN THE LIMITS OF THE CITY OF DOVER.
WHEREAS, the Charter of the City of Dover authorizes Council to extend the boundaries of the said City after a special election of the qualified voters and real estate owners of the territory proposed to be annexed, and
WHEREAS, the Mayor and Council of the City of Dover deem it in the best interest of the City of Dover to include an area contiguous to the present City limits, and hereinafter more particularly described within the limits of the City of Dover, and
WHEREAS, the Charter of the City of Dover provides that if a majority of the Votes cast in an election held in a territory proposed to be annexed shall be in favor of inclusion of that territory within the limits of the City of Dover, the Council may thereupon adopt a resolution annexing said territory and including same within the limits of the City of Dover.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. That the following described area, situated in East Dover Hundred, Kent County, State of Delaware, shall be annexed to and included within the limits of the City of Dover:
All that certain lot, parcel or piece of land situated in East Dover Hundred, Kent County, State of Delaware, lying on the northwesterly corner of the intersection of Chestnut Grove Road (S.H.R. #158) (50’wide right-of-way) with Kenton Road (S.H.R. #104) (60’wide right-of-way), said parcel being bounded on the East by Kenton Road, on the South by Chestnut Grove Road, on the West by lands now or formerly of D & S Investments, a Delaware Corporation, and on the North by Ethel L. Maney and is more specifically described below to wit:
Beginning at a point in the southwesterly right-of-way of Kenton Road, said point being located at the intersection of the southwesterly right-of-way of Kenton Road and the northern right-of-way of Chestnut Grove Road. Thence from said point of beginning and leaving the southwesterly right-of-way of Kenton Road and running with the northern right-of-way of Chestnut Grove Road 1) South 69° 02’ 21” West, (passing over a found iron rod at a distance of 84.90 feet) from said corner and continuing a total distance of 503.25 feet to a point, said point being a corner for this property and lands of D & S Investments; thence leaving said point and running with the lands now or formerly of D & S Investments 2) North 22° 16’ 30” West, (passing over a found iron pipe at 0.40 feet) from said point and continuing a total distance of 251.64 feet to a point, said point being a corner for these lands and lands now or formerly of Ethel L. Maney; thence leaving said point and running with lands now or formerly of Ethel L. Maney 3) North 42° 24’ 44” East, (passing over a found iron rod at a distance of 115.27 feet) from said point and continuing a total distance of 239.18’ feet to a found iron rod, said iron rod being in the southwesterly right of way line of Kenton Road; thence turning and running with the southwesterly right of way line of Kenton Road 4) along a curve deflecting to the left and having a radius of 3,849.72 feet and an arc length of 464.89’ the chord of which bears South 60° 24’ 34” East, a chord distance of 464.61 feet to the point and place of beginning, containing 2.647 acres of land, be the same, more or less.
The above-described parcel of land being all the same lands as described in the following three deeds:
ED-00-066.00-02-036.00, Parcel 1
Being the same lands and premises conveyed unto Robert M. Sadusky, Sr. and Irene D. Sadusky by deed of Flossie L. Deny, dated November 13, 1987 and of record in the Office of the Recorder of Deeds, Kent County, Delaware, in Deed Book G, Volume 44, Page 169.
ED-00-066.00-02-036.00, Parcel 2
Being the same lands and premises conveyed unto Robert M Sadusky, Sr. and Irene D. Sadusky by deed of James T. Vaughn, Jr., dated September 13, 1988 and of record in the Office of the Recorder of Deeds, Kent County, Delaware, in Deed Book Q, Volume 45, Page 16.
ED-00-066.00-02-039.00
Being the same lands and premises conveyed unto Robert M. Sadusky, Sr. and Irene D. Sadusky by deed of Mildred K. Kemp, dated September 29, 1988 and of record in the Office of the Recorder of Deeds, Kent County, Delaware, in Deed Book Q, Volume 45, Page 167.
2. The above described property shall be annexed into the City of Dover with a zoning classification of RG-2 (General Residence) in accordance with the zoning map and environs, then in force, effective upon such lands being included within the limits of the City of Dover.
3. That the certified copy of the resolution of annexation, together with a plot of the area annexed, shall be filed for record with the Recorder of Deeds of Kent County.
4. That the effective date of this resolution shall be the 10th day of August, 2004 at 12:01 a.m. o'clock.
ADOPTED: AUGUST 9, 2004
Public Hearing - Zoning Classification
Mr. James Galvin, City Planner, reviewed the Petition to Annex and Zone property, the Cost/Revenue Analysis, and the Plan of Services Report (Exhibit #1). The Planning Commission recommended that the zoning classification of this property be approved as RG-2 (General Residence) upon annexation. The Planning Commission included the suggestion that the applicant include in their Site Plan DelDOT’s recommendations for future improvements to the Chestnut Grove and Kenton Road intersection in keeping with the increased traffic in the area.
Council President Williams declared the public hearing open.
Mr. Joseph Petrosky, 2 North State Street, stated that he is a principle in Woodbrook Development, LLC. He requested members to support the recommendations of the Planning staff and Planning Commission with regard to the annexation and rezoning.
Ms. Cindy Knotts, 1721 Kenton Road, stated that she lives two (2) doors down from the property. She advised members that there is a great deal of traffic and the area is very crowded. It was her feeling that the proposal was not feasible and should be looked at more carefully.
Council President Williams declared the public hearing closed.
Mr. Salters moved that the property be zoned RG-2 (General Residence) as recommended by the Planning Commission. The motion was seconded by Mr. Carey and, by a unanimous roll call vote (Mr. Hogan absent and Mr. Sadusky not voting), Council adopted the following ordinance. (The first reading of the proposed ordinance was accomplished during the Council Meeting of June 28, 2004.)
AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTIES LOCATED AT 2507 AND 2521 CHESTNUT GROVE ROAD
WHEREAS, the City of Dover has enacted a zoning ordinance regulating the use of property within the limits of the City of Dover; and
WHEREAS, it is deemed in the best interest of zoning and planning to change the permitted use of property described below from AR (Agriculture Residential) (Kent County zoning classification) to RG-2 (General Residence) (City of Dover zoning classification).
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. That from and after the passage and approval of this ordinance the Zoning Map and Zoning Ordinance of the City of Dover has been amended by changing the zoning designation from AR (Agriculture Residential) (Kent County zoning classification) to RG-2 (General Residence), containing 2.647 acres, owned by Irene D. and Robert M. Sadusky, Sr.
ADOPTED: AUGUST 9, 2004
PRESENTATION - WEST SIDE RECREATION STUDY
Mr. DePrima, City Manager, advised members that City Council authorized the expenditure of $20,000 for a recreational needs study for the City to develop the most cost efficient facility that would meet the needs of the City.
Mr. Greg Moore of Becker Morgan Group, architects and engineers for the Westside Recreational Center Study, provided a PowerPoint presentation of the Study and discussed the design of the building, the needs of the City, and cost projections (as on file in the Office of the City Clerk).
Mr. Moore advised members that the total estimated construction cost, including impact fees, testing, insurance, telephone equipment, site preparation, and parking is $2.3M. He noted that an escalation factor was included in the price to adjust for the time period between the proposal and the actual start of construction. Mr. Moore also provided a detailed expense and revenue analysis projecting salaries and probable revenues. He noted that, with site work, the cost is approximately $120, and without site work it is approximately $120 per square foot.
Responding to Mr. Salters, Mr. Moore stated that several significant cost items, such as the standing seam metal roof and the all-purpose flooring system, which they believe are very important to the building, could be substituted with lesser quality items in order to reduce costs.
Mr. Zach Carter, Director of Parks and Recreation, advised members that a membership fee is not proposed and they would ensure that all citizens wishing to use the facility would have that opportunity. He stated that they will be considering some type of scholarship or program for citizens who are unable to pay program registration fees, as well as revenue partnerships to offset costs.
Responding to Mr. Ritter, Mr. Moore stated that other site locations were not considered for the center due to the availability of City-owned property at Schutte Park. He noted that land costs would be extremely prohibitive. Mr. Carter noted that constructing an addition at Dover Park would reduce the amount of outdoor space, which is used quite frequently.
Mr. Ritter asked how staff proposed to makeup the $136,500 projected expense per year, with a 3% to 4% escalation each year. Mr. DePrima responded that there is an expense involved in providing recreation service to the community which would have to be absorbed through other funds and increases in the tax base and fees. He noted that recreation would not operate on a break-even basis.
Mr. Ruane requested Mr. Carter to share his past experience with Kent County in terms of cooperative efforts and what his expectation was for cost sharing with regards to operations and construction. Mr. Carter stated that, in the past, Kent County has made commitments to share funding; however, they have not yet been approached regarding the Westside Recreational Center. He noted that they have cooperated on recreational programming and Kent County does utilize the soccer fields at Schutte Park. Mr. Carter stated that there are plans to arrange a discussion between the City and County with regards to the proposal. Mr. Slavin, referring to the recently completed Library Study, suggested that they also discuss coordination of benefits between the County and City so that services are not duplicated. Mr. Slavin also encouraged staff to contact other groups, such as seniors, who often look for indoor walking facilities.
Mr. DePrima noted that the next fiscal year would be spent talking to citizen groups, civic groups, and sports organizations about the project so that people fully understand the proposal and what it would provide. He stated that it would also provide an opportunity to gain input from the community. Mr. DePrima advised members that they would also be searching for partners in programming and financing and a Financing Plan will be developed.
No further action was taken.
UTILITY COMMITTEE REPORT - JULY 26, 2004
The Utility Committee met on July 26, 2004 with Chairman Carey presiding.
Annexation Request - East and West Side of McKee Road, North of and Adjacent to Dennys Road (Bush Farm), owned by Shirley L. and William G. Bush, IV
Members were provided the Petition to Annex and Zone Property, the Findings and Recommendations of the Dover Planning Commission, a Cost/Revenue Analysis Summary, and a draft Plan of Services Report for property located on the east and west side of McKee Road, north of and adjacent to Dennys Road (Bush Farm). Mr. Galvin, City Planner, advised members that the actual acreage was 125.82 +/- acres, not 134.43 +/- acres, as indicated in the report. He also noted that this parcel is one of the few remaining undeveloped parcels in the area. Mr. Galvin advised members that the Planning Commission recommended approval of the annexation and that the property be zoned RM-1 (Medium Density Residence).
Mr. Scott Koenig, Public Works Director, advised members of negotiations with Tidewater Utilities with regard to providing service to the Bush Farm, as well as Chestnut Grove Farm and the Sadusky property located on Chestnut Grove Road. Mr. Koenig stated that there is a State law with respect to municipal annexations which gives the municipality the first right to serve lands that are certificated but not yet served. He noted that Tidewater would be entitled to some type of compensation for the transfer of the franchise to the City of Dover. Mr. Koenig noted that they were also negotiating an agreement that addresses annexation completely around the border of the City of Dover, as it relates to Tidewater, and a “mutual service” agreement with Tidewater to serve water to them in the future and for them to act as a “redundant supply” for the City in emergency situations. Mr. Koenig also noted that he anticipated that the Public Service Commission would transfer electric rights for this property and the surrounding area. For future presentations, it was suggested that staff provide information on possible costs to obtain franchise rights, as well as the possibility of passing the cost on to the developer. Mr. Galvin advised members that the annexation would produce $1.5M in revenue, without water, wastewater, and electric, within the first four (4) years.
Members were advised that the Cheswold Fire District encompasses the entire Bush Farm area. If the annexation is approved, Fire Chief Bashista stated that he would contact Cheswold’s Fire Chief to negotiate the transfer of emergency services from Cheswold to Dover. He noted that if an agreement could not be reached, the Fire Commission would be requested to determine which fire district would be responsible for providing emergency services to the property. Chief Bashista advised members that any fire loss suffered by this property would count against the City of Dover regardless of which fire district it belonged to; therefore, the Robbins Hose Company prefers to obtain responsibility for it. He noted that they would request City Solicitor Rodriguez to provide legal assistance in the negotiations.
The committee recommended approval of the Planning Commission’s recommendation for annexation of property located on the east and west side of McKee Road, north of and adjacent to Dennys Road (Bush Farm), owned by Shirley L. and William G. Bush, IV.
By consent agenda, Mr. Salters moved for approval of the committee's recommendation, seconded by Mr. Carey and carried by a unanimous roll call vote (Mr. Hogan absent).
Dedication of Rights-of-Way and Public Infrastructure - The Overlook on Silver Lake
The developer of The Overlook on Silver Lake, Oldtowne Builders, L.L.C., has requested that all public infrastructure improvements related to this subdivision be dedicated to the City of Dover for permanent ownership and maintenance. Oldtowne Builders, L.L.C. has constructed all of the improvements in accordance with City standards and specifications. After construction was completed, City staff inspected the public improvements and provided the developer with a list of repairs to be made to meet the City of Dover Standards and Specifications for Public Works Construction. As of this date, all work has been completed by the developer. A one (1) year Maintenance Agreement, Maintenance Bond, and a Release of Liabilities have been submitted by the developer. In addition, as-built drawings have been submitted to the Department of Public Works for their permanent records. Staff recommended acceptance of the public infrastructure for
The Overlook on Silver Lake, with dedication to include all of the referenced public improvements, as follows:
Sewer Utility Infrastructure (construction value = $ 61,000.00):
8" PVC Sanitary Sewer Main - 1,271 l.f.
6” PVC Sanitary Sewer Laterals - 1,112 l.f.
4' Diameter Sanitary Sewer Manholes - 9 ea. (62.5 v.f.)
Water Utility Infrastructure (construction value = $90,365.00):
8" Ductile Iron Water Main - 2,118 l.f.
6” Ductile Iron Water Main - 60 l.f.
1” Type “K” Copper Water Service Line - 1,115 l.f.
8” Gate Valves - 13 ea.
6” Hydrant Valves - 4 ea.
Fire Hydrants - 4 ea.
Storm Water Infrastructure (construction value = $126,825.00)
Catch Basins - 44 ea.
Storm Water Junction Boxes - 4 ea.
15” Type III Reinforced Concrete Pipe - 474 l.f.
18” Type III Reinforced Concrete Pipe - 365 l.f.
14” x 23” Elliptical Concrete Pipe - 49 l.f.
19” x 30” Elliptical Concrete Pipe - 176 l.f.
Vortechnics Model 7000 Water Quality
Treatment Chamber - 1 ea.
Street Infrastructure: (0.47 miles) (construction value = $137,390.00)
Venue Drive Station 0+20 to Station 3+88 368 l.f.
Vista Drive Station 0+20 to Station 3+27 307 l.f.
Overlook Place Station 0+00 to Station 5+80 580 l.f.
Vista Drive West Alley Station 0+00 to Station 3+47 347 l.f.
Vista Drive East Alley Station 0+00 to Station 4+47 447 l.f. Venue Drive East Alley Station 0+00 to Station 4+19 419 l.f.
2,468 l.f.
The committee recommended approval of staff’s recommendation for the acceptance of dedication of public infrastructure for The Overlook on Silver Lake, to include all of the above-referenced public improvements.
By consent agenda, Mr. Salters moved for approval of the committee's recommendation, seconded by Mr. Carey and carried by a unanimous roll call vote (Mr. Hogan absent).
PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE REPORT - JULY 27, 2004
The Parks, Recreation, and Community Enhancement Committee met on July 27, 2004 with Chairman Pitts presiding.
Parks and Recreation/Open Space Plan - Clearview Meadow
In accordance with Article 5, Section 10, Subsection 10.16 of the Zoning Code, all residential developments shall provide recreational areas in a size equal to 275 square feet per dwelling unit, or one-half acre of land, whichever is greater. However, in no case shall the City require more than 10% of the gross area of the development be so dedicated or reserved when the gross area is greater than five (5) acres.
Clearview Meadow consists of 88.2524+/- acres located on the south side of North Little Creek Road, north of South Little Creek Road and east of Babb Drive. Mr. Bob Sevensky and Mr. Ramesh C. Batta of Ramesh C. Batta Associates, P.A. presented the Active Recreation Plan for Clearview Meadow (as on file in the City Clerk's Office). Based on the number of dwelling units proposed (303), this subdivision requires a minimum of 1.9129+/- acres of active open space. The plan proposes a total open space area of 22.065+/- acres, with 6.8429+/- acres of active open space, to include three (3) pieces of equipment (a play structure, swings, and merry-go-round), picnic tables, park benches, a tennis court, gazebo, and a walking path. The total investment for the above-mentioned items is $124,713.
The committee recommended approval of the Open Space Plan for Clearview Meadow, as presented.
By consent agenda, Mr. Salters moved for approval of the committee's recommendation, seconded by Mr. Carey and carried by a unanimous roll call vote (Mr. Hogan absent).
SAFETY ADVISORY COMMITTEE REPORT - JULY 28, 2004
The Safety Advisory Committee met on July 28, 2004, at 7:00 p.m. with Chairman Ritter presiding.
Report by Police Chief and Director of Planning and Inspections - Proposed Amendment to Section 10-41, Unlawful Leases - Length of Time Between Convictions and Inclusion of Consumption or Possession of Alcoholic Liquor (Continuation from Committee Meeting of July 14, 2004 - City Inspector Report - Student Housing)
During their Regular Meeting of July 14, 2004, members discussed the possible amendments to Section 10-41, Unlawful leases, as follows: Changing the length of time between convictions from three (3) months to one (1) year to coincide with the school year and inclusion of underage consumption as a conviction resulting in termination of a lease.
Mr. Galvin, Director of Planning and Inspections, stated that increasing the length of time between convictions would enable the conviction of repeat student offenders who may be spending the three months following their conviction away from Dover for the summer.
Members expressed concern with the possibility of an entire family being evicted due to the underage consumption conviction of one family member and that targeting student housing could be interpreted as discrimination. Chairman Ritter requested staff to obtain a legal opinion on the matter from City Solicitor Rodriguez.
Mr. Ruane stated that this would be a good opportunity to promote decreased underage drinking in the City. He suggested that eviction for an underage drinking conviction should occur after the second offense, not the first.
The committee recommended amending Section 10-41, Unlawful Leases, paragraphs (b) and (d) to increase the length of time between convictions from three (3) months to one (1) year.
By consent agenda, Mr. Salters moved for approval of the committee's recommendation, seconded by Mr. Carey and carried by a unanimous roll call vote (Mr. Hogan absent).
Required Distance from Open Flames at Gas Stations (City, County, State, and Federal Laws)
Chairman Ritter noted that he and other Council members had received several calls from citizens who were concerned with a portable smoker being located too close to gas pumps at a service station across from K-Mart on Route 13. He stated that their main concern was that a fire could occur during refueling of the tanks.
Members were provided with the 2003 International Fire Code related to Motor Fuel-Dispensing Facilities and Repair Garages. It was noted that the location of dispensing devices shall be twenty (20) feet or more from fixed sources of ignition. Mr. Galvin advised members that the Inspectors had visited the site and the distance between the smoker and the fuel pumps is 83 feet.
Mr. Ritter stated that the other concerns mentioned were the noise and the smoke. He noted that a new generator had been purchased and the noise issue had been resolved.
Mr. Ted White, co-owner of the portable smoker, stated that as each issue is resolved, the neighbors bring up other issues. He also advised members that one of the neighbors assaulted them with racial epithets and told them he was going to close them down.
Mr. Galvin advised members that the business has a license and is operating according to City regulations. Mr. Ritter suggested that they may want to look for another location that is not so close to residential areas once their 90-day permit expires.
No further action was taken.
By consent agenda, Mr. Salters moved for acceptance of the Safety Advisory Committee Report, seconded by Mr. Carey and carried by a unanimous roll call vote (Mr. Hogan absent).
EVALUATION OF BIDS - LANDSCAPING SERVICES
The Electric Department obtains a blanket contract for time and material for miscellaneous landscape work. Work includes repairing rights-of-way and established yards disturbed by City crews. Staff intends to use City services when available. Funding will be associated with operations or the project for which the work is being performed. Staff recommended awarding the landscaping contract to the low bidder, Durham Lawn Services.
Mr. Carey moved for approval of staff’s recommendation, seconded by Mr. Pitts and carried by a unanimous roll call vote (Mr. Hogan absent).
REVISED RESOLUTION - RECOMMENDATION OF BOND COUNSEL - ELECTRIC REVENUE BOND CALCULATIONS
Members were provided a supplement to the Electric Revenue Bond Resolution adopted December 23, 1985, which is necessary to satisfy the requirements of underwriters, rating agencies, and Bond Counsel. Mrs. Mitchell, Finance Director, advised members that the most significant impact is on the bond ratio, which will be calculated on earnings after the General Fund Transfer, rather than before. She also noted that, on August 23, 2004, Council will consider the Ratifying Resolution for the sale of the bonds, at which time the 1985 Amended Resolution will be eliminated and a completely new 2004 Resolution will be presented for adoption.
Staff recommended the approval of the Supplemental Resolution No. 2 to Resolution Adopted December 23, 1985, as amended, relating to the issuance and sale of Electric Revenue Bonds of the City of Dover.
By motion of Mr. Carey, seconded by Mr. Salters, Council adopted the following Resolution by a unanimous roll call vote (Mr. Hogan absent):
SUPPLEMENTAL RESOLUTION NO. 2 TO RESOLUTION ADOPTED DECEMBER 23, 1985, AS AMENDED, RELATING TO THE ISSUANCE AND SALE OF ELECTRIC REVENUE BONDS OF THE CITY OF DOVER
WHEREAS, The City of Dover (the “City”) is authorized pursuant to Chapter 111, Volume 52, Laws of Delaware, as amended, and the City Charter, Chapter 158, Volume 36, Laws of Delaware, as amended (the “Enabling Acts”) to issue revenue bonds for the purpose of financing and refinancing improvements to its electric system;
WHEREAS, pursuant to the Enabling Acts, the City adopted a Resolution on December 23, 1985, as supplemented on April 23, 1990 (the “Original Resolution”) and pursuant to the Original Resolution the City has adopted Resolutions on May 29, 1990, December 14, 1992 and July 14, 2003 in order to issue various series of electric revenue bonds (the Original Resolution as thereafter and herein supplemented is hereinafter referred to as the “Bond Resolution”);
WHEREAS, the City desires to act pursuant to Article X of the Original Resolution to make certain amendments to the Original Resolution in anticipation of the issuance of additional bonds under the Bond Resolution;
NOW THEREFORE, the Council hereby resolves and adopts the following as supplementing and amending the Original Resolution as follows:
1. Defined Terms. All defined terms used herein, identified by initial capital letters and not otherwise defined herein, shall have the meanings assigned to them in the Original Resolution, as amended.
2. Amendments to Defined Terms. The definitions of the terms “Paying Agent” and “Registrar” set forth in Section 101 of the Original Resolution are hereby deleted in their entirety and substituted with the following:
The term “Paying Agent” shall mean the City, or such other entity which is under contract with the City to perform the function(s) of a paying agent, and any successor thereto appointed in accordance with terms hereof.
The term “Registrar” shall mean the City, or such other entity which is under contract with the City to perform the function(s) of a registrar, and any successor thereto appointed in accordance with terms hereof.
3. Amendments to Application of Monies Withdrawn from the Revenue Fund. Section 507 of the Original Resolution is hereby amended as follows:
(a) All the language following the phrase “as provided in Section 504 of this Article;” is hereby deleted from subsection (c) of Section 507.
(b) The “.” is hereby deleted from the end of subsection (e) of Section 507 of the Original Resolution and in its place is substituted “; provided that no amounts shall be transferred to the City’s General Fund, or any other fund which is not held for the benefit of the Electric System, unless, if that transfer were taken into account as a Current Expense for the purposes of the Rate Covenant described in Section 502, such transfer would not cause the Rate Covenant to be violated.”
4. Amendment to Application of Moneys in the Improvement and Extension Fund. The phrase “, or premiums on insurance carried under the provisions of this Resolution” is hereby deleted from the end of the first paragraph of Section 510 of the Original Resolution.
5. Amendments to Insurance Covenant. Section 706 of the Original Resolution is hereby amended as follows:
(a) The phrase “approved by the Engineering Consultants” at the end of the first paragraph of Section 706 is hereby deleted and in its place is substituted “recommended by the Engineering Consultants”.
(b) The second paragraph of Section 706 is hereby deleted and in its place is substituted: “All such insurance policies shall be carried by a responsible insurance company or companies authorized and qualified under the laws of the State of Delaware to assume the risks thereof.”
6. Amendments to Recordkeeping and Reporting Covenant. Section 708 of the Original Resolution is hereby amended as follows:
(a) The second paragraph (including subsections (a) through (f)) of Section 708 is hereby deleted.
(b) The phrase “with the approval of the Trustee” is hereby deleted from the third paragraph of Section 708 of the Original Resolution.
7. Amendment to Requirements of Notice of Redemption. The second sentence of Section 302 of the Original Resolution is hereby deleted and in its place is substituted:
Each such notice shall state (i) whether the bonds are redeemed in whole or in part and, if in part, the maturities and numbers of the bonds to be redeemed, (ii) in the case of a partial redemption of any bond, the portion of the principal amount which is to be redeemed, (iii) that the interest on the bonds to be redeemed shall cease on the date fixed for redemption, (iv) the date fixed for redemption and the redemption price, (v) that the bonds to be redeemed shall be presented for redemption and payment on the date fixed for redemption at the principal office of the Paying Agent, and (vi) whether the redemption is conditional on sufficient funds being available.