SPECIAL MEETING

February 8, 1973

A special meeting of City Council was held on Thursday, February 8, 1973 at 12:00 Noon, EST, at City Hall Annex with Mayor Carroll presiding. Members present were Messrs Biggs, Harris, Hayes.

The meeting was held for the purpose of publicly opening and considering sealed proposals received for the purchase of $3,500,000 City of Dover Bonds, Series of 1972, in three issues as follows: $1,500,000 Sanitary Sewer System Bonds; $1,500,000 Water System Bonds; and $500,000 Public Improvement Bonds. Fifteen (15) proposals were received and opened, with low proposal being submitted by George B. Gibbons & Company, Inc. as follows: The sum of $3,500,000 plus a premium of $9,730.00, plus accrued interest to the date of delivery of the bonds totaling $2,000,000 maturing from 1974 thru 1993 at 5.40%; and interest rate on bonds totaling $1,500,000 maturing from 1994 thru 2003 at 4.75%. Effective rate of interest is calculated at 4.98546%. The bid was accompanied by a certified check in the amount of $70,000. The check received from the fourteen (14) unsuccessful bidders were returned upon the completion of the opening.

RESOLUTION AWARDING BONDS

Councilman Holpp introduced the following resolution and moved that it be adopted:

WHEREAS, the City Council received sealed proposals for the purchase of $1,500,000 Sanitary Sewer System Bonds, Series of 1972; $1,500,000 Water System Bonds, Series of 1972; and $500,000 Public Improvement Bonds, Series of 1972, of the City of Dover, dated December 15, 1972, until 12 o’clock noon, Eastern Standard Time on February 8, 1973, at the City Hall Annex, in the City of Dover, Delaware, pursuant to the Notice of Sale of said bonds published in accordance with the resolution adopted by the City Council on January 22, 1973; and

WHEREAS, the following list shows the name of each bidder who submitted a proposal the price offered by said bidder including any premium and the net interest cost to the City Council on January 22, 1973; and

NAME OF BIDDER

George B. Gibbons & Co., Inc.

Morgan Guaranty Trust Company

Harris Trust and Savings Bank

Merrill Lynch, Pierce Fenner & Smith

Lambard Wall Inc.

PRICE OFFERED

$ 3,509,730.00

3,500,412.00

3,500,455.00

3,500,003.50

3,501,575.00

INTEREST RATE

1974-1993 - 5.40%

1994-2003 - 4.75%

1974-1980 - 6.10%

1981-2003 - 5.20%

1974-2003 - 5.10%

1974-1987 - 6.00%

1988-2003 - 5.00%

1974-1993 - 5.00%

1994-2003 - 5.25%

Halsey Stuard & Company, Inc.

First National City Bank New York

Philadelphia National Bank

The First Boston Corporation

L. F. Rothschild & Company

Chemical Bank of New York

Chase Manhattan Bank

Continental Bank and Trust Company

Blyth Eastman Dillon & Company

Northern Trust Company

and;

3,502,100.00

3,502,205.00

3,500,596.05

3,513,547.25

3,501,597.50

3,518,331.75

3,501,101.00

3,530,132.50

3,503,519.25

3,502,101.00

1974-2003 - 5.25%

1974-2000 - 5.30%

2001-2003 - 4.50%

1974-1999 - 5.50%

2000-2003 - 4.50%

1974-2000 - 5.50%

2001-2003 - 4.50%

1974-1986 - 6.00%

1987-2003 - 5.00%

1974-1991 - 5.00%

1992-2003 - 5.20%

1974-2002 - 5.25%

2003 - 4.25%

1974-1991 - 5.10%

1992-2003 - 5.40%

1974-2000 - 5.25%

2001-2003 - 4.50%

1974-1983 - 6.00%

1984-2003 - 5.00%

WHEREAS, the City Council desires to accept the proposal to purchase said bonds to which reference is hereinafter made;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DOVER, DELAWARE as follows:

1. The City Council hereby accepts the proposal to purchase said three issues of bonds for the price of $3,509,730.00 and accrued interest to the date of delivery submitted by George B. Gibbons & Company, Inc.

2. The $2,000,000 bonds payable in the years 1974 to 1993, inclusive, shall bear interest at the rate of 5.40% per annum. The $1,500,000 bonds payable in the years 1994 to 2003, inclusive shall bear interest at the rate of 4.75% per annum.

3. The Mayor and The City Treasurer of the City of Dover are hereby authorized and directed to cause said bonds to be prepared and to execute said bonds in accordance with their provisions and to deliver said bonds to the purchaser upon payment to the City Treasurer of the purchase price of said bonds.

4. The City Council on behalf of the City of Dover hereby covenants to the purchaser of the bonds that it will make no use of the proceeds of the bonds at any time during the term thereof which, if such use had been reasonably expected at the date the bonds are issued, would have caused such bonds to be arbitrage bonds within the meaning of Section 103 of the United States Internal Revenue Code of 1954, as amended, and any official regulations promulgated therefor. The officers of the City of Dover are hereby directed to comply with such covenant.

Councilman Hayes seconded the motion and the motion was adopted, Messrs Biggs, Harris, Hayes, Holmes, Holpp, Legates, Muir and Walls voting in favor of the motion and no one voting against it. The Mayor of The City of Dover concurs with the award of the bonds upon the terms stated in the resolution hereinabove set forth.

ADOPTED FEBRUARY 8, 1973

COUNCIL ADJOURNED AT 12:30 P.M.

                                                                        JAY R. DOUGHERTY

                                                                        CITY CLERK

All orders, ordinances and resolutions adopted by City Council at its meeting of February 8, 1973 are hereby adopted.

                                                                        CRAWFORD J. CARROLL

                                                                        MAYOR

February 8, 1973