REGULAR MEETING
January 27, 1975
The Regular Meeting of City Council was held on Monday, January 27, 1975, at 7:30 P.M. with Mayor Carroll presiding. Members present were Messrs. Legates, Walls, Holpp, Hardcastle, Muir, Harris and Cullen.
The invocation was given by Reverend J. H. Williams, Council Chaplain.
MINUTES
The minutes of the Regular Meeting of City Council held on January 13, 1975, were accepted and bore the written approval of Mayor Carroll.
REPORTS
Chief of Police Report for the month of December was accepted.
Building Inspector and Fire Marshal Report for the month of December was accepted.
City Planner Report for the month of December was accepted.
City Alderman Report for the month of December was accepted.
Cash Receipts, General Fund, for the month of December was accepted.
Budget Report, General Fund, for the month of November was accepted.
Cash Receipts, Electric Revenue Fund, for the month of December was accepted.
Budget Report, Electric Revenue, for the month of November was accepted.
Cash Receipts, Electric Improvement Fund, for the month of December was accepted.
City Manager’s Report for the month of December was accepted.
CITY MANAGER’S WRITTEN REPORT
Mr. James reported that hot hydro testing of the boiler on Unit #3 will commence on January 27.
Representatives of Eastern Shore Natural Gas and the City Manager were present at the office of Senator Joseph Biden on January 7, 1975 for the purpose of requesting the congressional delegation to intervene before the Secretary of the Interior and Federal Power Commission to obtain additional gas supplies for the State of Delaware.
On motion of Mr. Muir, seconded by Mr. Hardcastle, Council accepted the City Manager’s written report as presented.
RESOLUTION - SHORT TERM LOAN - $2,000,000
The City Manager addressed Council concerning the need to borrow $2,000,000 to complete construction of Unit #3 at McKee Run and to restore certain funds to the Improvement and Extension Fund as spelled in the Bond Resolution. In addition, it appears at this time that the cost of construction for Unit #3 will be $1,000,000 more than originally estimated in 1973 due to a twelve month delay in the completion date and esculation clauses related to cost of materials and labor.
At the present time no predicted rate increase in the electric rates is necessary to take care of the obligation of the proposed $2,000,000 loan.
Mr. James requested that the resolution be adopted and stated that said resolution was drawn up by a bond council in New York so as not to be in violation of any bond covenants now in existence. Following a discussion by Council there was a motion by Mr. Holpp, seconded by Mr. Muir, that Council adopt the resolution as presented. By a roll call vote of seven (7) yes, the following resolution was adopted.
A RESOLUTION AUTHORIZING THE ISSUANCE OF $2,000,000 SPECIAL REVENUE NOTE (PAYABLE SOLELY FROM SURPLUS ELECTRIC REVENUES) OF THE CITY OF DOVER, DELAWARE
WHEREAS, The City of Dover (the “City”) has heretofore issued $12,000,000 Electric Revenue Bonds (Series 1970) and $10,000,000 Electric Revenue Bonds (Series 1973) for the purpose of providing funds, together with other funds which are or will be made available, for paying the cost of certain Improvements to the City’s Electric System consisting principally of the McKee Run Station Electric Generating Unit; and
WHEREAS, the City at the time of issuance of the Series 1973 Bonds mentioned above contemplated that a portion of the cost of the Improvements would be derived from moneys to accrue in the City of Dover Electric System Improvement and Extension Fund (the “Extension Fund”) but $1,000,000 of such moneys necessarily were spent on urgent items required to maintain the Electric System as an operating utility; and
WHEREAS, the City’s engineering consultants have advised that an additional $1,000,000 over and above the construction costs estimated at the time of issuance of the Series 1973 Bonds will be required to complete the Improvements; and
WHEREAS, the Resolution of the City adopted on July 26, 1965 (the “Bond Resolution”) authorizing the securing the outstanding Electric Revenue Bonds of the City permits the City Council to provide by resolution for the deposit of certain surplus Electric Revenues to such fund or funds as the City Council shall provide; and
WHEREAS, the City Council has determined to issue $2,000,000 special revenue note of the city for the purpose of paying the cost the completing the Improvements and to secure the payment of the principal of and the interest on such note by a pledge of surplus Electric Revenues; now, therefore,
BE IT RESOLVED by the Council of The City of Dover, Delaware:
Section 1. For the purpose of paying the cost of completing the Improvements financed in part by the issuance of the Series 1970 Bonds and Series 1973 Bonds mentioned in the first preamble of this resolution, there shall be issued special revenue note of the City in the aggregate principal amount of $2,000,000.
Section 2. The note herein authorized shall be designated “Special Revenue Note (Payable Solely from Surplus Electric Revenues)”, and shall be dated, shall be in such denomination, shall be numbered, shall mature at such time or times (with or without the option of prior redemption) and shall bear interest at such rate or rates, all as shall be determined in the resolution or resolutions adopted by the City Council awarding said note to the purchasers thereof.
Section 3. In order to pay the principal of and the interest on the note herein authorized the City Council hereby directed that the City Treasurer:
(a) deposit all moneys up to the sum of $500,000 accruing in each fiscal year for the purposes of clause (e) of Section 507 of the Bond Resolution to the credit of a special trust account hereby created in the Extension Fund and designated “City of Dover Special Revenue Note Debt Service Account” (the “Debt Service Account”),
(b) deposit 25% for any balance accruing in each fiscal year for the purpose of clause (f) of Section 507 of the Bond Resolution to the credit of the Debt Service Account in the Extension Fund, subject to any requirements of the Reserve Account as set forth in said clause (f), and
(c) deposit the remaining 75% of any balance accruing in each fiscal year for the purpose of clause (f) of Section 507 of the Bond Resolution to the credit of the Debt Service Account in the Extension Fund.
The City covenants that the moneys accruing under clauses (e) and (f) of Section 507 of the Bond Resolution will be deposited as provided in subsections (a), (b) and (c) above until the note herein authorized and the interest thereon is paid in full and the moneys so deposited to the Debt Service Account in the Extension Fund will constitute trust funds to be held for the benefit of the holders of the note herein authorized and to be applied to the payment of the principal of and the interest on such note at the time or times and in the amounts determined in the resolution awarding such note to the purchasers thereof; provided, however, that all moneys so deposited to the credit of the Debt Service Account in the Extension Fund shall be subject to the provisions of the last paragraph of Section 510 of the Bond Resolution which provides that moneys in the Extension Fund shall be withdrawn therefrom by the City Treasurer and deposited to the credit of the Bond Service Account under the Bond Resolution if at any time the moneys held for the credit of the Bond Service Account and the Reserve Account shall be insufficient for the purpose of paying the interest on and the principal of the Electric Revenue Bonds outstanding under the Bond Resolution as such interest and principal shall become due.
Section 4. The note herein authorized shall be executed in the manner provided therein and shall be substantially in the following form:
(Form of note)
No. $2,000,000
United States of America
State of Delaware
County of Kent
THE CITY OF DOVER
Special Revenue Note (Payable Solely
from Surplus Electric Revenues)
The City of Dover (herein called the “City”), a municipal corporation in the County of Kent, State of Delaware, for value received, hereby promises to pay, solely from the special fund provided therefor as hereinafter set forth, to Wilmington Trust Company or registered assigns or legal representative, on June 30, 976 (or earlier as hereinafter referred to) upon the presentation and surrender hereof at Dover, in Delaware, the principal sum of
TWO MILLION DOLLARS
in any coin or currency of the United State of America which at the date if payment thereof is legal tender for the payment of public and private debts and to pay, solely from said special fund, interest thereon in like coin or currency from the date hereof at the rate of 5 5/8% per annum until payment of such principal sum, such interest to the maturity hereof being payable on June 30, 1976 and June 30, 1977 to the registered owner hereof by check or draft mailed to the registered owner at his address as it appears on the records of the City Treasurer.
This note is note a debt of The City of Dover or a pledge of the faith and credit of the City, but is payable solely from the special fund provided therefor from the surplus revenues of the Electric System of the City deposited to the credit of the Debt Service Account in The City of Dover Electric System Improvement and Extension Fund as provided in the resolution adopted on January 27, 1975 authorizing the issuance of this note, but subject to the prior pledge of such surplus revenues under the resolution adopted on July 26, 1965 authorizing and securing the outstanding Electric Revenue Bonds on the City and the holder hereof has no right to compel the levy of any tax for the payment of this note or the interest to accrue hereon. The City is not obligated to pay this note or the interest hereon except from such special fund, and no holder of this note shall ever have the right to enforce the payment thereof against any property of the City, and this note does not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City.
This note is one of a duly authorized issue of special revenue notes of the City, designated “Special Revenue Note (Payable Solely from Surplus Electric Revenues)”, consisting of note maturing on June 30, 1976, and issued to provide funds, together with other funds which are or will be made available, for paying the balance of the cost of certain Improvements to the Electric System of the City.
This note is issued under and pursuant to a resolution duly adopted by the Council of the City on January 27, 1975 reference to which is hereby made for the provisions, among others, with respect to the custody and application of the proceeds of note issued under said resolution, the fund charged with and pledged to the payment of the interest on and the principal of the note, the nature and extent of the security, the rights, duties and obligations of the City and the rights of the holders of the note, and, by the acceptance of this note, the holder hereof assents to all the provisions of said resolution and the resolution adopted on July 26, 1965 authorizing and securing the resolution and the resolution adopted on July 26, 1965 authorizing and securing the outstanding Electric Revenue Bonds of the City, which Electric Revenue Bonds enjoy a prior claim on all revenues, including surplus revenues, of the City’s Electric System.
This note is issued with the intent that the laws of the State of Delaware shall govern its construction.
All acts, conditions and things required by the Constitution and laws of the State of Delaware and the ordinances and resolutions of the City to happen, exist and be performed precedent to and in the issuance of this note have happened, exist and have been performed as so required.
IN WITNESS WHEREOF, The City of Dover has caused this note to be signed by its Mayor and to be signed by its City Clerk, and its corporate seal to be impressed hereon, all as of the 31st day of January 1975.
CRAWFORD J. CARROLL
Mayor
WILLIAM H. WILLIS
City Clerk
(SEAL)
Approved as to form and correctness:
City Solicitor
Section 5. The proceeds of the note herein authorized shall be deposited with a Depositary to the credit of the City of Dover McKee Run Station Electric Generating Unit Construction Fund, a special fund created by a resolution adopted a August 31, 1970 and held in trust for disbursement by the City for the sole and exclusive purpose of paying the balance of the cost of the Improvements.
Section 6. The City Clerk shall cause to be published once, in a newspaper published in the City, a notice in substantially the following form:
NOTICE
NOTICE IS HEREBY GIVEN that a resolution entitled as follows:
A RESOLUTION AUTHORIZING THE ISSUANCE OF $2,000,000 SPECIAL REVENUE NOTE (PAYABLE SOLELY FROM SURPLUS ELECTRIC REVENUES) OF THE CITY OF DOVER, DELAWARE
was duly adopted by the city Council of The City of Dover, Delaware, on the 27th day of January 1975, the purpose of the issuance of said note being to provide funds, together with other available funds, to pay the balance of the cost of a new 100 megawatt electric generating unit for the City’s electric system and other improvements.
Any action or proceeding to contest the validity of said resolution or any of its provisions must be commenced within thirty (30) days after the publication of this notice. After the expiration of such period of limitation, no right of action or defense founded upon the invalidity of said resolution or any of its provisions shall be asserted, nor shall the validity of said resolution or any of its provisions be open to question in any court upon any ground whatever, except in an action or proceeding commenced within such period.
By order of the City Council of The City of Dover, Delaware.
WILLIAM H. WILLIS
CITY CLERK
Section 7. This resolution shall take effect immediately upon its passage and approval by the Mayor.
PASSED AND ADOPTED ON this 27th day of January 1975.
Approved:
CRAWFORD J. CARROLL
Attest:
WILLIAM H. WILLIS
City Clerk
ADOPTED JANUARY 27, 1975
SMALL CITY OWNED PLOTS - SALE
The City Manager informed Council that he has the deeds to three plots of land and per the request of Mr. Harris at a previous meeting, asked that Council give their permission to advertise the land for acceptance of the highest bidder.
One plot is located on the northeast corner of Wyoming Avenue and Monroe Terrace, being 15.75 feet wide. The second plot is located on the southwest corner of Governors Avenue and Bank Lane being 12 feet wide. Further back and at the same location is a third plot on separate deed, 102 feet log and 48 feet wide.
On motion of Mr. Harris, seconded by Mr. Walls, Council by a roll call vote of seven (7) yes instructed the City Manager to proceed with the sale of the three parcels of land covered by deeds and submit the results to Council.
J. P. COURT #7 REPORT
The City Clerk informed Council that the figures given for the month of November was actually the December Report of J. P. Court #7. He asked that Council accept the November and December 1974 reports at this time to facilitate corrections of the report given at the January 13, 1975 meeting of Council.
On motion of Mr. Legates, seconded by Mr. Muir, Council accepted the November 1974 Report as check received $6,348.00, deferred payments being $30,087.12 and the December 1974 Report as check received $5,912.10, deferred payments being $30,301.62. Motion was carried.
ELECTION RESULTS
The election officials certified to Council the following results of the Municipal Election held on Monday, January 20, 1975.
MACHINE VOTES ABSENTEE VOTES TOTAL
FIRST DISTRICT
Gary E. Hindes 1,013 23 1,036
Joseph M. McDonough 1,020 19 1,039
SECOND DISTRICT
E. A. Barrell 831 16 847
Charles A. Legates, Jr. 1,187 25 1,212
THIRD DISTRICT
Carleton Walls 820 19 839
Charles L. Witt 1,196 20 1,216
FOURTH DISTRICT
Victor E. Holpp 653 19 672
David Perman 983 17 1,000
Sylvio A. Stortini 401 7 408
TOTAL VOTES CAST 2,087 45 2,132
On motion of Mr. Hardcastle, seconded by Mr. Walls, Council by unanimous roll call vote, accepted the results as presented.
ORGANIZATIONAL MEETING & SWEARING OF ELECTED
Mayor Carroll reminded everyone present that the Organizational Meeting would be held on February 5, 1975, and the swearing in of the newly elected and presentations to Councilmen leaving office would be held on February 10, 1975.
REZONING REQUEST-MABEL B. GRIFFITH, EUGENE G. & MARLENE G. AUEN
A request was received from Mabel B. Griffith, Eugene G. & Marlene G. Auen, owners to rezone land located between Delaware Railroad Company, New Burton Road and West Street. Prior to amending the zoning ordinance and zoning map a public hearing is required. On motion of Mr. Hardcastle, seconded by Mr. Cullen, Council adopted the following resolution and referred the request to the Planing Commission.
A RESOLUTION SETTING FORTH TIME AND PLACE OF PUBLIC HEARING ON A PROPOSED AMENDMENT TO THE ZONING MAP OF THE CITY OF DOVER AND DIRECTING THAT NOTICE OF SAID HEARING BE PUBLISHED IN ACCORDANCE WITH THE PROVISIONS OF THE DELAWARE CODE.
WHEREAS, certain lands bounded on the west by the Delaware Railroad Company, on the east acres is presented zoned for RG-1 use, and
WHEREAS, it is necessary to hold a public hearing prior to amending the zoning map and zoning ordinance 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 a public hearing be held in City Hall on March 10, 1975, at 8:00 P.M. on a proposed amendment to the zoning map that would rezone from RG-1 to M that property bounded on the west by the Delaware Railroad Company, on the east by West Street, on the north by lands of John D. & J. M. Ferguson, consisting of 6.17 acres, owned by Mabel B. Griffith, Eugene G. & Marlene G. Auen.
2. That notice of the public hearing be given in accordance with the provisions of the Delaware Code.
ADOPTED JANUARY 27, 1975
REZONING REQUEST - LISHON CONSTRUCTION COMPANY, INC. - 1180 FORREST STREET
A request was received from Lishon Construction Company, Inc., owner, to rezone property located at 1180 Forrest Street. Prior to amending the zoning ordinance and zoning map a public hearing is required. On motion of Mr. Walls, seconded by Mr. Legates, Council adopted the following resolution and referred the request to the Planning Commission.
A RESOLUTION SETTING FORTH TIME AND PLACE OF PUBLIC HEARING IN A PROPOSED AMENDMENT TO THE ZONING MAP OF THE CITY OF DOVER AND DIRECTING THAT NOTICE OF SAID HEARING BE PUBLISHED IN ACCORDANCE WITH THE PROVISIONS OF THE DELAWARE CODE.
WHEREAS, certain property located at 1180 Forrest Street, is presently zoned for RG-2 use, and
WHEREAS, it is necessary to hold a public hearing prior to amending the zoning map and zoning ordinance 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 a public hearing be held in City Hall on March 10, 1975, at 8:00 P.M. on a proposed amendment to the zoning map that would rezone from RG-2to RG-3 that property located at 1180 Forrest Street, owned by Lishon Construction Company, Inc.
2. That notice of the public hearing be given in accordance with the provisions of the Delaware Code.
ADOPTED JANUARY 27, 1975
HEART FUND
A letter from Representative James D. McGinnis, chairman of the Kent County Heart Fund, requested a contribution to that association. On motion of Mr. Harris, seconded by Mr. Muir, Council acknowledged receipt of the letter.
ANNA GREENWOOD ESTATE - 776 WEST NORTH STREET
On motion of Mr. Hardcastle, seconded by Mr. Legates, Council by a unanimous vote removed the condemnation procedure from the table on the property of the Anna Greenwood Estate, 776 West North Street.
Mr. Hardcastle commented that he had received a very nice letter from Mrs. Marie Johnson and that she had agreed to have the structure on this property demolished.
Mr. Roe reported having received a call from Mrs. Johnson the previous week giving him permission to start demolition procedures at the low bid. He stated to Council that it was his belief that the structure had been removed.
Mr. Legates moved that Council acknowledged the report of the Building Inspector that the structure was in the process or had been removed from 776 West North Street. The motion was seconded by Mr. Hardcastle and carried.
BROKER OF RECORD LIST - MR. HARRIS
Mr. Harris asked if Mr. Verne McGrew’s name was still on the broker of record list. Reason being, that Mr. McGrew no longer had an established business in the City. Mr. James replied that the name Dover Insurance Agency still was listed, this being the business of Verne McGrew.
Mr. Harris moved that the Dover Insurance Agency be removed from the broker of record list and also this list be purged by the Legislative and Finance Committee and similar companies be removed. The motion was seconded by Mr. Muir and carried.
MAYOR CARROLL - BICENTENNIAL BUDGET
Mayor Carroll stated that the Bicentennial Committee had reminded him that an agreed budget had not been settled with the Legislative and Finance Committee. As a result finances for postage was presenting a problem. The Mayor stated that a request was made to use the postage machine at City Hall, postage not to exceed $10.00 per month, until a budget is enacted.
Mr. Legates moved that the Bicentennial Committee be permitted to bring their mail to the City Clerk’s Office for postage and that the Clerk keep a separate record of postage used, not to exceed $10.00 per month.
Mr. Legates congratulated the City Clerks’s Office on the professional manner in which the January 20, 1975 Election was conducted. Mayor Carroll extended the compliment to all the election clerks and officials.
FEBRUARY 3RD HOLIDAY
Mr. James reminded members of Council that February 3rd is a holiday for City employees and that Public Work crews would not be collecting trash. This will be advertised by the local news media.
MEETING ADJOURNED 8:17 P.M.
WILLIAM H. WILLIS
CITY CLERK
All orders, ordinances and resolutions adopted by City Council in their meeting of January 27, 1975, are hereby approved.
CRAWFORD J. CARROLL
MAYOR
29 January 1975