REGULAR COUNCIL MEETING
The Regular Council Meeting was held on August 24, 1992 at 7:30 p.m. with Council President Christiansen presiding. Members present were Councilmen Lambert, Tudor, Leary, Pitts, Salters, Levitt and Daisey. Councilman Hare was absent.
Council staff members present were Chief Hutchison, Mr. Lucas, Mr. Worley, Mr. DePrima, Fire Chief Baker, Mrs. Boaman and Mr. Rodriguez.
The invocation was given by Rabbi Goldblum, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Council President Christiansen requested the addition of an executive session, item #13, to discuss personnel and legal matters.
Mr. Leary moved for approval of the agenda as amended, seconded by Mr. Daisey and unanimously carried.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF AUGUST 10, 1992
The Minutes of the Regular Council Meeting of August 10, 1992 were unanimously approved by motion of Mr. Leary, seconded by Mr. Daisey and bore the written approval of Mayor Knopf.
RESOLUTION - DARLENE A. KLENOSKI - RETIREMENT
By motion of Mr. Salters, seconded by Mr. Leary, Council unanimously adopted the following Resolution:
WHEREAS, Darlene A. Klenoski began her employment with the City of Dover on April 10, 1968 as a Switchboard Operator; and
WHEREAS, during her employment with the City, Darlene worked in the Water and Sewer Department, Electric Customer Services Department, Inspections Department, and was Secretary to the City Manager. In 1987, she became the Secretary to the Electric Director; and
WHEREAS, Darlene Klenoski's experience and knowledge of the various City Departments have benefited the City of Dover; and
WHEREAS, after 25 years of service, Darlene Klenoski has chosen to retire effective April 11, 1993, with terminal leave beginning August 31, 1992.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the City of Dover wish Darlene A. Klenoski a happy and healthy retirement and extend their sincere appreciation for the excellent work she has provided to the City of Dover during her employment.
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to make this Resolution a part of the permanent records of the City of Dover as a lasting symbol of appreciation for the service of Darlene A. Klenoski.
ADOPTED: August 24, 1992
Council President Christiansen announced that a formal presentation will be made to Mrs. Klenoski during retirement ceremonies on August 26th.
PROCLAMATION - WALK FOR RECOVERY
The following Proclamation was issued by Mayor Aaron O. Knopf and was presented to Mr. Jim Huard, Director of Addictions Coalition of Delaware:
WHEREAS, substance abuse is a major public health problem that is both preventable and treatable; and
WHEREAS, Aids, birth defects, highway fatalities, domestic violence, child abuse, violent crimes and the cost of prosecution, incarceration, health care, and loss of work productivity could be reduced through education and various treatment programs; and
WHEREAS, funds for treatment services continue to be inadequate to serve the many people who need and request help despite the overwhelming scientific evidence and the irrefutable collective experience that treatment works and is cost-effective; and
WHEREAS, the Addictions Coalition of Delaware, Inc., will be coordinating the Fourth Annual "Treatment Works" Month in September 1992, helping to increase awareness of the belief that treatment really does work.
NOW, THEREFORE, I, AARON O. KNOPF, MAYOR OF THE CITY OF DOVER, DELAWARE, do hereby proclaim September 26, 1992, as:
"WALK FOR RECOVERY"
in the City of Dover, and urge citizens to recognize the importance treatment can have on society and to support the efforts of the Addictions Coalition of Delaware, Inc.
PRESENTATION - DISTINGUISHED BUDGET PRESENTATION AWARD
On behalf of Government Finance Officers Association, the City of Dover was presented with a "Distinguished Budget Presentation Award" for fiscal year beginning July 1, 1991. The award was presented to Mrs. Terri Tieman, Administrative Services Director. Mrs. Tieman explained that the award demonstrates that the City of Dover budget is recognized by the Government Finance Officers Association as being proficient as a policy document, a financial plan, an operational guide and as a communications device to our citizens. The budget preparation was a team effort, including Mr. Worley, Ms. Swain, Ms. Tieman and all department heads. Special appreciation was relayed to Ms. Kim Pearce and Mr. Donovan Watson for the many hours of work spent to bring the budget document to fruition.
PRESENTATION - CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING
On behalf of Government Finance Officers Association, the City of Dover was presented with a "Certificate of Achievement for Excellence in Financial Reporting" for fiscal year ended June 30, 1991. The award was presented to Finance Director, Mike C. Karia, and Finance Department employees Terri Rolison, Traci McDowell-Emory and Ray Cola. Mr. Karia expressed his sincere appreciation to his staff for the hard work that earned the award.
AUTHORIZING RESOLUTION FOR $1 MILLION GENERAL OBLIGATION BOND ISSUE
On August 10, 1992 the City Council approved the concept of General Obligation Bonds to finance the street and tax ditch programs. The next step in the process is Council's approval of the resolution authorizing the issuance of the bonds.
Finance Director Karia reviewed in detail all aspects of the authorizing resolution. Mr. Levitt reminded members of Council that the Charter allows the issuance of General Obligation Bonds up to $1 million for streets and related purposes. This bond will be used for tax ditch improvements and the street, alley and sidewalk programs.
Mr. Karia stated that final determination of project expenditures will be determined within three to six months.
By motion of Mr. Salters, seconded by Mr. Leary, Council adopted the following Resolution by a unanimous roll call vote (Mr. Hare absent):
RESOLUTION AUTHORIZING THE ISSUANCE OF UP TO $1,000,000 OF BONDS OF THE CITY OF DOVER FOR THE PURPOSE OF MAKING IMPROVEMENTS OR REPAIRS TO OR CONSTRUCTING PUBLIC STORM SEWERS, STREETS AND APPURTENANCES LOCATED IN THE CITY OF DOVER:
WHEREAS, the Mayor and the Council of The City of Dover (the "City") have determined that there is a need for certain improvements or repairs to or construction of public storm sewers, streets and appurtenances throughout The City of Dover as identified in Exhibit A hereto (the "Projects") for the management and maintenance of the City; and
WHEREAS, Section 50(c) of the City Charter provides that bonds can be authorized to finance public storm sewers, streets and appurtenances in an amount not to exceed $1,000,000 without a referendum; and
WHEREAS, bonds authorized pursuant to Section 50(c) cannot in the aggregate outstanding at any one time exceed a total of one (1) percent of the total taxable assessment for a general tax; and
WHEREAS, Section 50(b) of the City Charter provides that the amount of the bonded indebtedness of the City, secured by the full faith and credit of the City, may not at any time exceed a sum equal to 25% of the total assessed value of real property situate within the bounds of the City; and
WHEREAS, the addition of $1,000,000 to the bonded indebtedness of the City, secured by the full faith and credit of the City, will not cause the aforesaid limitations on bonded indebtedness to be exceeded.
WHEREAS, by Resolution adopted June 8, 1992, the Council has approved the Projects;
NOW, THEREFORE, BE IT RESOLVED by the Council of The City of Dover as follows (three quarters of all members thereof concurring therein):
1. The Council hereby finds that
(a)the improvements or repairs to or construction of public storm sewers, streets and appurtenances identified in Exhibit A would be for the health, safety, convenience, comfort and well being, and would otherwise be for the general benefit, of the citizens of the City and would serve to preserve public and private property, and
(b)the costs of the Projects shall not exceed $1,000,000, such costs to include all initial planning, expenses, all legal and financing fees and the like associated with the Projects and the borrowing therefor and the costs of the issuance and sale of the Bonds.
2. In the event that there are any excess proceeds of the Bonds (as defined below) remaining after the completion of the Projects to the extent determined by the Mayor and Council, any such funds may be applied for any other authorized projects for public storm sewers, streets and appurtenances as determined by the Mayor and Council or for the payment of debt service on the Bonds.
3. The City shall issue its negotiable bonds in the maximum aggregate principal amount of $1,000,000 (the "Bonds") pursuant to and in accordance with Section 50 of the City Charter, to finance in whole or in part the costs of the Projects. The full faith and credit of The City of Dover is pledged to the payment of the Bonds and the interest, and premium, if any, thereon. The Bonds shall be dated, shall mature in such installments (not extending beyond 25 years), shall be subject to redemption prior to maturity, with or without premium, and shall otherwise contain such terms and provisions as shall be determined by the Mayor and the Treasurer to be in the best interest of the City. The maturity structure of the Bonds shall be designed to approximate substantially equal annual debt service requirements as determined by the Mayor and Treasurer.
4. The Bonds shall be issued as a single consolidated issue of bonds and each of the Bonds shall bear the designation "General Obligation Bond, Series 1992". The Bonds shall be in denominations of $5,000 and any integral multiples thereof and shall be numbered consecutively.
5. The Bonds shall bear interest from their date at a rate or rates not exceeding a true interest cost of 7.0 percent per annum when calculated for all the Bonds in the aggregate. Such interest shall be payable semi-annually on the dates determined by the Mayor and Treasurer with the first semi-annual payment to occur prior to June 30, 1993. True interest ("Canadian") cost shall be determined by doubling the semi-annual interest rate, compounded semiannually, necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the price bid, excluding interest accrued to the date of delivery.
6. The Bonds may be issued in book-entry form registered in the name of a securities depository (the "Depository") and immobilized in the custody of the Depository subject to such terms and conditions as may be determined by the Mayor and Treasurer in which case the Mayor or Treasurer may execute and deliver on behalf of the City a letter of representations in such form as they may determine to be in the best interest of the City. In the event that the Bonds are immobilized in the custody of a Depository, the City shall not be liable for the failure of the Depository or of any participant of the Depository to perform any obligation to any participant or beneficial owner of any such Bond.
7. Principal and interest payments on the Bonds are to be made to the owner of record as of the fifteenth day of the calendar month preceding the month in which the applicable interest or principal payment date occurs. So long as the Bonds are registered in the name of the Depository, the Depository shall be considered the owner of record.
8. Each of the Bonds shall contain a recital that it has been authorized and issued pursuant to the terms and conditions of Section 50 of the City Charter. Each of the Bonds shall be signed by the manual or facsimile signatures of the Mayor and the Treasurer. The official corporate seal of the City or a facsimile thereof shall be imprinted or impressed upon each of the Bonds.
9. In the event any of the Bonds are called for redemption prior to maturity, notice thereof identifying said Bonds to be redeemed shall be given by mailing by first class mail, postage prepaid, to the registered owner or owners thereof at the address shown on the registration books not more than sixty (60) days nor less than thirty (30) days prior to the date fixed for redemption; provided, however, that failure to give such notice by mailing or any defect therein to the registered owner of any said Bond designated for redemption shall not affect the validity of the proceedings for the redemption of any other said Bond. All of said Bonds so called for redemption will cease to bear interest on the specified redemption date provided funds for their redemption are on deposit at the place of payment at that time.
10. Each of said Bonds and the provisions for the registration of the Bonds to be endorsed thereon, shall be in substantially the form hereinafter set forth in Exhibit B as completed as the Mayor and Treasurer may deem advisable, and the Mayor and the Treasurer of the City are hereby authorized and directed to cause said Bonds to be prepared when they shall have been sold and to execute said Bonds in accordance with their terms.
11. The Bonds shall be sold by the City for not less than ninety eight percent (98%) of par plus accrued interest at a public sale to be held at such time as the Mayor and the Treasurer shall determine shall be in the best interest of the City. In connection with such public sale, the City Treasurer is hereby authorized and directed to cause a Notice of Sale completed as the Mayor and Treasurer, shall deem advisable, in substantially the form hereinafter set forth in Exhibit C, to be published in a newspaper of general circulation published in the City of Wilmington, and the City of Dover, Delaware, and in a financial newspaper published in the City of New York, State of New York. The published notice may be a summary of the formal notice which the Mayor and Treasurer shall make available to interested bidders.
12. The Mayor and City Treasurer are authorized to prepare a Preliminary Official Statement with respect to the sale and issuance of the Bonds, to "deem" such Preliminary Official Statement "final" for the purposes of Rule 15c2-12 of the Securities and Exchange Commission, to provide for distribution thereof to prospective purchasers of the Bonds and to finalize and provide for distribution of the final Official Statement.
13. The moneys raised by the issuance of the Bonds, after the payment of charges and expenses connected with the preparation, sale and issuance thereof, shall be expended only for the purposes authorized in this Resolution, including reimbursement of City funds for authorized advances made prior to the sale of the Bonds.
14. City Council hereby finds that the City does not reasonably anticipate issuing more than $10,000,000 of obligations of The City of Dover (including the Bonds) during calendar year 1992. The City hereby designates the Bonds as "qualified tax exempt obligations" for the purposes of Section 265(b)(3)(B) of the Internal Revenue Code of 1986.
15. The Mayor and Council are authorized and directed to take all appropriate action to maintain the exclusion from gross income of interest on the Bonds for federal income tax purposes including the payment of any arbitrage rebate to the United States, if required, and the establishment of special accounts in connection therewith.
16. The power to prescribe the final terms, form and contents of the Bonds, the Notice of Sale, the Preliminary Official Statement and the Official Statement and the power to sell, issue and deliver said Bonds subject to the provisions of this Resolution, is hereby delegated to the Mayor and City Treasurer. Upon awarding the sale of the Bonds to the winning bidder, the City Treasurer shall promptly notify the City Council in writing of such award. The power to execute any documents, and the power to take any further action and do all things necessary, with respect to the sale, issuance and delivery of the Bonds is hereby delegated to the Mayor and City Treasurer, subject to the provisions of this Resolution.
17. At any time when the Mayor is unable to perform any of the acts or duties described herein, the Vice-Mayor may take the appropriate action necessary for the same.
ADOPTED: August 24, 1992
______________________________
Debrah J. Boaman
City Clerk
EXHIBIT A
Tax Ditch Improvements (Storm Sewers)$585,000
Streets, Alley and Sidewalk Program$376,000
EXHIBIT B
R-________ DOLLARS $_____________
UNITED STATES OF AMERICA
STATE OF DELAWARE
THE CITY OF DOVER
GENERAL OBLIGATION BOND
Series 1992
Interest Rate Maturity DateDated Date CUSIP
Registered Owner:
Principal Sum:
THE CITY OF DOVER (hereinafter referred to as the "City"), in the County of Kent, a political subdivision of The State of Delaware, for value received, hereby acknowledges itself indebted and promises to pay to the registered owner named above, or registered assigns or legal representative, the principal sum stated above, on the maturity date stated above, upon presentation and surrender hereof, and to pay interest to the registered owner hereof on the applicable record date at the interest rate per annum stated above, payable on ________ 1, 199___; and semi-annually thereafter on each ________ 1 and ________ 1, until payment of such Principal Sum shall have been made. Both the principal of and interest on this Bond are payable in lawful money of the United States of America. Interest on this Bond shall be paid by check or draft mailed to the registered owner as shown on the bond register maintained by the City. The principal amount shall be payable upon presentation and surrender of this Bond by the registered owner at the office of the City Treasurer, City Hall, Dover, Delaware.
In the event this Bond is held by or registered in the name of a securities depository or other agent or nominee of a beneficial owner, by purchase of a bond, the Bondholder agrees that the City shall have no responsibility or liability for any action or inaction by the depository or other agent or nominee in connection with the Bond.
Bonds maturing on or after ________ 1, ____ are subject to redemption at the option of the City prior to maturity, as a whole or in part at any time on or after _______ 1, ______ selected by the City (if less than all of said Bonds outstanding of a single maturity shall be called for redemption, such Bonds to be so redeemed shall be selected by the City by lot) at the redemption prices expressed as percentages of their principal amounts plus accrued interest to the redemption date as set forth in the table below:
Redemption Period (Dates Inclusive) Redemption Price
________ 1, 19___ through ________ 30, 19__ %
________ 1, 19___ through ________ 30, 19__
________ 1, 19___ and thereafter
In the event that this Bond is called for redemption prior to maturity as aforesaid, notice thereof shall be given by first class mail, postage prepaid to the registered owner shown on the registration books not more than sixty (60) days nor less than thirty (30) days prior to the date fixed for redemption. If this Bond is called for redemption as aforesaid, it will cease to bear interest on the specified redemption date provided funds for its redemption are on deposit at the place of payment at that time.
This Bond is one of an issue of bonds of like date and tenor, except as to maturity and rate of interest, and has been duly authorized, and is issued pursuant to Section 50, Chapter 158, Volume 36, Laws of Delaware, (the "City Charter"), as amended, and by a Resolution adopted August 24, 1992 (the "Resolution") by the Mayor and City Council of the City to finance, in whole or in part, certain projects of the City described therein.
It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of The State of Delaware to exist, be performed or happen, precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that the amount of this Bond, together with all other indebtedness of the City, is within every debt and other limit prescribed by said Constitution or statutes. The full faith and credit of the City are hereby pledged to the punctual payment of the principal of and interest on this Bond according to its terms.
The Series 1992 Bonds are issuable in the form of registered bonds without coupons in the denomination of $5,000 or any multiple thereof. The owner of any registered Bond or Bonds may surrender the same (together with a written instrument of transfer satisfactory to the City duly executed by the registered owner or his duly authorized attorney) at the office of the City Treasurer, in exchange for an equal aggregate principal amount of registered Bonds, of the same maturity and of any other authorized denominations.
Any transfer of this Bond must be registered, as provided in the Resolution, upon the Bond Register kept for that purpose at the office of the City Treasurer by the registered owner hereof in person, or by his attorney duly authorized in writing, upon surrender of this Bond together with a written instrument of transfer satisfactory to the City duly executed by the registered owner or his attorney duly authorized in writing and thereupon a new registered Bond or Bonds, of the same series and security and in the same aggregate principal amount, shall be issued to the transferee in exchange therefor as provided in the Resolution free of charge except for any applicable transfer tax or other governmental charge. The City may deem and treat the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price hereof and interest due hereon and for all other purposes, as provided in the Resolution.
IN WITNESS WHEREOF, the City has caused this Bond to be signed by the Mayor of The City of Dover by his manual signature or a facsimile thereof and by the Treasurer of The City of Dover by his manual signature or a facsimile thereof to be imprinted or impressed hereon and this Bond to be dated as of the date set forth above and the official corporate seal of said City or a facsimile thereof to be imprinted or impressed hereon.
(SEAL)
Mayor, The City of Dover
Treasurer, The City of Dover
EXHIBIT C
NOTICE OF SALE
THE CITY OF DOVER
$1,000,000 GENERAL OBLIGATION BONDS - SERIES 1992
Notice is hereby given that The City of Dover will receive sealed proposals for the purchase of the bonds referred to above (the "Bonds") of THE CITY OF DOVER (the "City") at the offices of Potter Anderson & Corroon, 350 Delaware Trust Building, 9th and Market Streets, Wilmington, Delaware, until 11:00 a.m. on ___________, ____, 199___ at which time and place all proposals received will be publicly opened. Bids may be telecopied to (302) 658-1192 provided that the hereinafter mentioned good faith deposit is delivered at the aforesaid time and place for the opening of bids. The bidder bears the risk of any delay in receipt of any telecopied bid.
Description of the Bonds
The Bonds will be dated ________ 1, 1992 with interest payable from the date of the Bonds commencing ________ 1, 19___ and thereafter semi-annually on each ________ 1 and ________ 1 on the outstanding principal amount thereof and will mature in amounts and on dates as follows:
Principal Principal
1 Amount 1 Amount
$ $
Form of Bids and Basis of Award
Bids must be submitted on Official Bid Forms, without modification or change. Bidders are invited to name the rate or rates of interest which the Bonds are to bear. Each rate named must be a multiple of one-eighth or one-twentieth of one per centum per annum. Each proposal should be enclosed in a sealed envelope marked "Proposal for Bonds" and should be addressed to the undersigned as Treasurer, The City of Dover. The Bonds will bear interest at the rate or rates per annum named in the proposal accepted. No proposal for less than all of the Bonds and no proposal offering to pay less than 98% of par, plus accrued interest on the Bonds, will be considered. The proposal may name one rate for part of the Bonds and another rate or rates for the balance of the Bonds. The difference between the lowest and highest rates named in the proposal shall not exceed _________ per centum, such rates to be in ascending order. Any rate must be for an entire maturity in any one year. The Bonds will be awarded to the bidder who offers to buy the Bonds at the lowest true interest cost, expressed in dollars, to the City. The lowest true interest cost will be determined by doubling the semiannual interest rate necessary to discount the semiannual debt service payments from the payment dates to the date of the Bonds (_________ ___, 199__) and to the price bid, excluding interest accrued to the date of delivery. The City reserves the right to waive any irregularity or informality in any proposal and to reject any and all proposals. All proposals shall remain firm for four (4) hours after the time specified for the opening of the proposals, and an award of the Bonds or rejection of the proposals will be made by the City within such period of time.
Good Faith Deposit
Each bidder must, as a condition precedent to the consideration of his proposal, submit with his proposal a certified or cashier's check in an amount equal to $20,000 drawn upon a bank or trust company, payable to the order of the City. The check submitted by the bidder to whom the Bonds are awarded will be retained by the City and will be applied toward the purchase of the Bonds. The purchaser must pay accrued interest from the date of the Bonds to the date of delivery. The Bonds must be paid for in immediately available funds. No interest will be allowed upon the amount of the check submitted by the successful bidder. If the winning bidder fails to accept delivery of and to pay for the Bonds, the proceeds of such check will be retained by the City and applied to damages sustained by the City by reason of such failure.
Optional Redemption
The Bonds maturing on or after _________ 1, ____ will be subject to redemption at the option of the City, on or after ________ 1, ____ and prior to maturity, as a whole or in part at any time, in any order of maturity selected by the City, at the respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed) set forth in the following table, plus interest accrued and unpaid to the redemption date:
Redemption Period Redemption
(Dates Inclusive Price
________________ through ________________
________________ through ________________
________________ and thereafter
Notice of any such redemption will be mailed to The Depository Trust Company, New York, New York ("DTC") as registered owner of the Bonds not more than sixty days nor less than thirty days prior to the redemption date. If less than all of the Bonds of any maturity of any series shall be called for redemption, the particular Bonds to be redeemed shall be selected by lot.
Interest on Bonds
Interest on the Bonds is payable by wire transfer to DTC or its nominee. Principal on the Bonds will be payable to DTC in exchange for the applicable Bonds. Principal and interest are payable in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts.
Book Entry
The Bonds will be issued in book-entry form with no physical distribution of Bond certificates made to the public. One Bond certificate for each maturity will be issued in the name of DTC or its nominee and immobilized in its custody. A book-entry system is expected to be employed showing ownership of the bonds in principal amounts of $1,000, or integral multiples thereof, with transfers of beneficial ownership effected on the records of DTC (and its participants) pursuant to rules and procedures established by DTC. The winning bidder, as a condition to delivery of the Bonds, will be required to deposit the Bond certificates with DTC, registered in the name of Cede & Co. a nominee of DTC. The City does not presently intend to apply for listing of the Bonds on the New York Stock Exchange.
It is anticipated that CUSIP identification numbers will be assigned to each maturity of the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of or pay for the Bonds in accordance with the terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the Bonds and the CUSIP Service Bureau charge for the assignment of said numbers shall be paid for by the City.
Delivery of Bonds
The Bonds are expected to be delivered on or about two weeks after the date of sale through the facilities of DTC, in New York, New York. The City will make available to the purchaser, without cost to the purchaser, at the time the Bonds are paid for, the opinions and certificates referred to under the caption "Opinions and Certificates Available on Delivery of Bonds" in the Preliminary Official Statement dated _________, 1992 prepared and distributed by the City in connection with the offering for sale of the Bonds.
Bank Eligibility
In the opinion of Bond Counsel, for the purposes of Sections 265(b) and 291(e)(1)(B) of the Internal Revenue Code of 1986 (the "Code"), the Bonds, in the hands of a financial institution described therein, will be treated as having been acquired on August 7, 1986. Consequently, the Bonds in the hands of such a financial institution will be subject to the 20% interest disallowance rule of Code Section 291(a)(3) and not the 100% interest disallowance rule of Code Section 265(b)(1).
Certification of Issue Price
In order to provide the City with information required to enable it to comply with certain requirements of the Code relating to the exclusion of interest on the Bonds from gross income for Federal income tax purposes, the successful bidder will be required to execute and deliver to the City at the time of the delivery of the Bonds a certificate as to the "issue price' in substantially the form available from the City. In the event a successful bidder will not offer the Bonds for sale or is unable to sell a substantial amount of the Bonds by the date of delivery, such certificate may be modified in a manner approved by the City. Each bidder, by submitting its bid, agrees to execute and deliver such a certificate by the date of delivery of the Bonds, if its bid is accepted by the City. It will be the responsibility of the successful bidder to institute such syndicate reporting requirements, to make such investigation, or otherwise to ascertain the facts necessary to enable it to make such certification with reasonable certainty.
Additional Information
Information concerning Bond ratings, the scheduling of the receipt and opening of the bids for the Bonds or any other information in connection with the offer and sale of the bonds will be given to prospective bidders by Munifacts wire, telegram or other verbal or written communication as the City may determine to be reasonable, and any such supplemental information shall be deemed a part of this Notice of Sale. Prospective bidders interested in receiving such additional information should file their names and addresses with the City by calling James T. Cavanaugh & Associates, (410) 832-7780, the City's Financial Advisor with respect to the Bonds. Copies of the Preliminary Official Statement, when available, can be obtained by calling James T. Cavanaugh & Associates at (410) 832-7780.
M.C. Karia
Treasurer
City of Dover, Delaware
Dated:_____________________
REMARKS - MAYOR AARON O. KNOPF
During a recent Town Meeting, Councilman Tudor outlined a proposal to construct a West Dover Fire Station for approximately $150,000. This cost was significantly less than the quoted proposal by French & Ryan, design architects retained by Robbins Hose Company. In an attempt to clarify the costs proposed by French & Ryan, Mayor Knopf invited representatives of the firm to address the issue. Mr. Paul Woods and Mr. Pat Ryan of French & Ryan explained that a significant portion of the proposed costs stem from the extensive amount of site improvement required for the parcel to be used for the Fire Station. Specific problems that contribute to the excessive costs are: (1) removal of high voltage overhead electric lines and telephone/cable lines (conversion to underground lines - $42,000); (2) large, thick concrete pads needed in front and rear of building to provide sufficient driving and parking of heavy equipment (cost - $44,500); (3) DelDOT is requiring vehicles to enter the building from the rear and exit from the front, which requires a long road from the back - (road and excavation costs - $40,000). Other costs include normal bumpers, landscaping, striping, etc. Costs for site work only are projected at $150,000. Mr. Ryan also informed Council that since the date of the original estimate, the State has adopted a Stormwater Management Policy which requires that water be stored on-site. A retention pond will have to be erected at an estimated cost of $5,000 for the collection system and retention pond. DelDOT is also requiring that traffic lights be provided on the road north and south of the fire station and on Walker Road at an estimated cost of $85,000 for only the traffic lights.
French & Ryan prepared a study comparing costs of a metal building structure and a conventional structure, with a monetary difference of only $35,000.
Mr. Tudor voiced objections to this matter being discussed without advance notice, stating that he was not prepared with the necessary facts and figures to review the proposal in detail. However, Mr. Tudor stated that the 12 engine Fire Station in Greenwood, Delaware is a metal structure, with drive-thru capabilities and a meeting room. This station was completed for less than $400,000. He also referred to a metal structure in Lewes, Delaware that is a six engine station, which cost $250,000. (Having worked on the Greenwood and Lewes stations, Mr. Ryan corrected the completion costs of the Greenwood Station, stating the project costs of $470,000. The pre-engineered steel building for the Lewes station cost $133,000 in 1987. This was the cost of the building only. Assuming a January 1st start date, you would expect a 27.4 percent inflation rate on the cost of the building). Mr. Tudor reiterated his feeling that the West Dover Fire Station can be a scaled down version that is capable of responding to a fire until the full troops can arrive to handle the major part of the fire. He felt that the substation would not need to be a full-fledged stand-alone station. Mr. Tudor stated that a pre-engineered building does not require the need of an architect since the structure is assembled at the factory under the direction of engineers and architects.
Mr. Ryan explained that his firm has performed projects on both metal and conventional structures and reminded Council that there are many different types of metal structures at varying costs. He offered to review each itemized cost with Mayor Knopf and members of Council at their convenience.
In response to a question by Mr. Tudor, Mr. Ryan stated that his firm has been paid $5,000 to $7,000 by Robbins Hose Company for their design work to date.
Mayor Knopf stated that approximately $2.5 million is saved per year by the use of a volunteer fire department. He felt that the department is the best judge of its needs and urged citizens and Council to be realistic in meeting these needs. He stated that renovations/additions to the Police Station and construction of a West Dover Fire Station would cost the taxpayers approximately $21 per year, per taxpaying family in the City of Dover.
Council President Christiansen stated that this very important issue will be reviewed by the Safety Advisory Committee and the Public Safety Committee.
MONTHLY REPORTS - JULY
By motion of Mr. Salters, seconded by Mr. Leary, Council unanimously accepted the following reports for the month of July:
Chief of Police Report
Building Inspector and Fire Marshal Report
City Assessor Report
City Alderman Report
J.P. Court #7 Report
City Manager Report
General Fund, Cash Receipts & Budget Report
Water/Sewer Fund, Revenue & Budget Report
Internal Service Fund, Revenue & Budget Report
Electric Revenue Fund, Revenue & Budget Report
Improvement and Extension Fund, Cash Receipts & Budget Report
LEGISLATIVE AND FINANCE COMMITTEE
The Legislative and Finance Committee met on August 11, 1992 with Chairman Levitt presiding.
Report - Council Approval on Planning Commission Actions
During discussions, members of Council relayed concern with being held responsible for the decisions made by the Planning Commission for Conditional Use and Site Plan Approvals. Council requested that the Planner consult with members of the Planning Commission, the public, and other involved parties, to present alternatives regarding the matter.