REGULAR COUNCIL MEETING
The Regular Council Meeting was held on June 27, 1994 with Council President Christiansen presiding. Council members present were Mr. Tudor, Mr. Leary, Mr. Pitts, Mrs. Malone, Mr. Weyandt, Mr. Salters and Mr. Hare. Mr. Lambert was absent.
Council staff members present were Chief Smith, Mr. Lucas, Mr. O'Connor, Mr. Petit deMange, Mrs. Boaman and Mr. Rodriguez.
OPEN FORUM
The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Christiansen declared the open forum in session and reminded those present that Council is not in official session and cannot take formal action.
There was no one present wishing to speak during the open forum.
The invocation was given by Reverend Raymond Best, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Mr. Salters requested that an item be added to the Legislative and Finance Committee Finance Committee Report, related to a request from the Maple Dale Country Club to extend the Agreement of Sale with the City of Dover.
Mr. Hare moved for approval of the agenda as amended, seconded by Mrs. Malone and unanimously carried.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF JUNE 13, 1994
The Minutes of the Regular Council Meeting of June 13, 1994 were unanimously approved by motion of Mrs. Malone, seconded by Mr. Pitts and bore the written approval of Mayor Hutchison.
PRESENTATION - LUTHER TOWERS
Council President Christiansen stated that Luther Towers is exempt from paying City of Dover property taxes. However, in their desire to be good citizens, since 1989 they have voluntarily contributed to the City a payment in lieu of taxes. The initial 1989 amount was $5,000. Since then, it has consistently grown with this year's contribution being $12,000. Over the entire period, their total contributions have amounted to $60,500. Their display of generosity and good citizenship is appreciated and it is hoped that it will serve as an example of community commitment for other tax exempt organizations to follow.
In recognition of the City's appreciation, Mayor Hutchison presented Luther Towers with a plaque containing the City Seal and expressing the appreciation of the Mayor and City Council. Mayor Hutchison stated that we are fortunate to have such an exemplary facility, dedicated to the care of senior citizens, located within our City. The plaque was accepted on behalf of Luther Towers by Reverend Raymond Best, Chairman of the Board, and by Mr. Arthur Ellisen, Executive Director. Reverend Best stated their appreciation for the City services that Luther Towers enjoys, and that although they appreciate the tax relief, they wish to participate in any way possible in sharing the costs for the services they utilize.
LEGISLATIVE AND FINANCE COMMITTEE FINANCE COMMITTEE
The Legislative and Finance Committee Finance Committee met on June 14, 1994 with Chairman Salters presiding. Noting that the committee tabled action on the Request to Waive Sidewalks in the Maple Dale Minor Subdivision, Mr. Salters requested no Council action on this matter.
Basic Life Support Service Contract
The City has contracted with a private vendor to provide Basic Life Support Service in the Robbins Hose Fire District since August 31, 1991. This service was provided by Med Star, Inc. from August 31, 1991 through December 21, 1993. Med Star, Inc. was then purchased by Metro Ambulance Service, Inc. who is currently administering the contract. The Basic Life Support Service Contract is due to terminate on August 31, 1994. Staff requested proposals to provide Basic Life Support Service for the Robbins Hose Fire District, with Metro Ambulance Service, Inc., Professional Ambulance Service, Inc., and MSC Ambulance Services submitting proposals.
One of the bidders, MSC Ambulance Services, was disqualified because they missed the submittal deadline. The proposals submitted by Metro Ambulance Service, Inc. and Professional Ambulance Service Inc. were reviewed by staff and interviews conducted with both firms. Due to their outstanding patient record, local ownership, services offered beyond the scope of the contract, and cooperative working relationship with the City, staff recommended that the Basic Life Support Service Contract for the Robbins Hose Fire District be awarded to Metro Ambulance Service, Inc. The length of the contract is three (3) years; however, based on service criteria, the City may terminate the contract at anytime.
Council President Christiansen advised members that a representative of Professional Ambulance Service requested the opportunity to make a presentation before the Committee. However, no one from the company was present at the committee meeting to make the presentation.
The committee recommended that the Basic Life Support Service Contract be awarded to Metro Ambulance Service, Inc., as recommended by staff.
Mr. Salters moved for approval of the committee's recommendation, seconded by Mr. Leary.
Mr. Weyandt asked if all involved parties were given equal opportunity to bid on the proposal. Mr. Christiansen reiterated that although Professional Ambulance Service representatives have expressed concern that they were not selected, they have been given every opportunity to voice their feelings to Council. (It is noted that a letter was received from Professional Ambulance Service after the date of the committee meeting.) Mr. O'Connor stated that there is no cost to the City in either of the two proposals. The City Manager and Community Services Director personally interviewed the two companies that bid on the contract. Although both companies have very good reputations and offer quality service, staff recommended that the contract be awarded to Metro since their corporate headquarters are located in Dover and since they are the current providers, having performed in a very satisfactory manner during the past three year contract.
On a call for the question by Mr. Leary, the motion to award the Basic Life Support Service Contract to Metro Ambulance Service, Inc. was carried by a unanimous roll call vote (Mr. Lambert absent).
Police Station Project Financing Plan
As recommended by the Public Safety Issues Implementation Study Committee, City Council approved the concept of the police station renovation and expansion. A referendum was held on May 17, 1994 and the issuance of general obligation debt was approved by the voters.
Mr. Mike Karia, Treasurer/Finance Director, submitted a report indicating the details of the financing plan related to this project and referendum, as follows:
∙ Bond Amount:
Bond Issue not to exceed $3,000,000
Project - $2,900,000 and bond Discount/Issuance cost - $100,000
∙ Type: General Obligation
∙ Form: Book entry only
∙ Life of Bonds: 15 or 20 years. Determination will be based on the best value for a dollar received by the City under the then prevailing market contract conditions.
∙ Selling Method: Competitive Bids
∙ Debt Service: First interest payment is 7/1/95. First principal payment is 7/1/96.
∙ Recommended Bond Counsel:
A. Potter Anderson & Corroon, Wilmington
B. Proposed Fees: Not to exceed $16,000
C. Out of pocket expenses: Not to exceed $3,000
D. Fees for credit enhancement: $5,000, not included in $16,000. We do not expect to use this service.
∙ Rating: We will apply for Moody's rating. Our current G.O. rating is A1. We expect to receive the same rating for this proposed bond issue.
∙ Financial Advisor: We are going to do a lot of this work ourselves. Only limited help will be needed for debt structuring and for market timing. The cost is estimated to be less than $2,500.
∙ Issue Timing: We will issue the bonds only when the funds are needed to pay the first bill from the contractor.
∙ Authorizing Bond Resolution: Will be presented to Council on June 27, 1994.
The committee recommended approval of the financing plan and the appointment of the bond counsel.
Mr. Salters moved for approval of the committee's recommendation under the consent agenda format, seconded by Mrs. Malone and unanimously carried.
Agreement of Sale Extension - Maple Dale Country Club
The Committee held a special meeting on June 27, 1994 at 6:45 p.m. to consider a request by Maple Dale Country Club for a 60 day extension on their agreement of sale with the City of Dover for approximately two acres of land located off the Kenton Road, along the entrance to the Club. They are actively attempting to meet all the requirements for the proposed subdivision, but have been able to complete everything prior to the July 1, 1994 settlement date. The City Assessor recommended that the request for a 60 day extension be granted and that the settlement date be rescheduled for on or before September 1, 1994.
After discussion, the committee recommended approval of the request for a 60 day extension to the Agreement of Sale with the Maple Dale Country Club and that settlement be held on or before September 1, 1994.
Mr. Salters moved for approval of the committee's recommendation, seconded by Mr. Weyandt and and carried by a roll call vote of six (6) yes, two (2) abstentions (Mr. Leary and Mr. Hare) with Mr. Lambert absent.
Mr. Salters moved for acceptance of the Legislative and Finance Committee Finance Committee Report, seconded by Mr. Hare and unanimously carried.
AUTHORIZING BOND RESOLUTION
City Council approved the concept of the police station renovations and expansion. A referendum was held on May 17, 1995 and borrowing of the funds was approved by the voters. The City's Bond Counsel prepared the necessary resolution which authorizes the Mayor and Treasurer to take all necessary steps for the sale of the bonds.
Mr. Salters moved for approval of the authorizing bond Resolution. The motion was seconded by Mr. Hare and by a unanimous roll call vote (Mr. Lambert absent), Council adopted the following Resolution:
A RESOLUTION AUTHORIZING THE SALE OF BONDS IN THE AMOUNT OF THREE MILLION DOLLARS FOR THE PURPOSE OF MAKING CERTAIN RENOVATIONS AND EXPANSION OF THE CITY OF DOVER'S POLICE STATION AS APPROVED BY THE REFERENDUM ELECTION OF MAY 17, 1994.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET, AS FOLLOWS:
i. The Mayor and Council have authorized, by a Resolution passed by City Council on April 18, 1994, certain renovations and expansion of the police station of The City of Dover (the "City") as more particularly described in Exhibit A (the "Project").
ii. In accordance with the results of the referendum election of May 17, 1994, the Mayor and Council hereby determine that General Obligation Bonds in the amount of up to $3,000,000 shall be issued to fund the Project and for any other lawful projects approved by the Council pursuant to Section 50 of the City Charter and have authorized City officials to proceed with implementation of the Project and the issuance of bonds and to use City funds to be reimbursed out of bond proceeds and to take all other proper action in furtherance of the purposes set forth in this Resolution.
iii. The City shall issue its negotiable bonds in the maximum aggregate principal amount of $3,000,000 (the "Bonds") pursuant to and in accordance with Section 50 of the City Charter, to finance in whole or in part the cost of the Project. 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, shall be subject to redemption prior to maturity, with or without premium, and shall otherwise contain such terms and provisions as are provided in the form of the Preliminary Official Statement (hereinafter described) and as may be modified by the Mayor and the Treasurer as they shall determine shall be in the best interest of the City.
iv. 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 1994". The Bonds shall be in denominations of $5,000 and any integral multiples thereof and shall be numbered consecutively.
v. The Bonds shall bear interest from their date at a rate or rates not exceeding a true interest cost of 7% per annum when calculated for all the Bonds in the aggregate. Such interest shall be payable semi-annually with the first payment to be made within thirteen months of the date of sale. The first principal payment shall be within twenty-four months of the date of sale. 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.
vi. 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 in which case the Mayor may execute and deliver on behalf of the City a letter of representations in such form as the Mayor 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.
vii. Principal and interest payments on the Bonds are to be made to the Depository as registered owner of the Bonds. Such payments 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.
viii. 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.
ix. 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 the 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.
x. Each of said Bonds and the provisions for the registration of the Bonds to be endorsed thereon, shall be in substantially the form set forth in Exhibit B, 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.
xi. The Bonds shall be sold by the City at such price and 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, in substantially the form set forth in Exhibit C, to be published in a newspaper of general circulation in the City of Wilmington, and the City of Dover, Delaware, and in a financial newspaper of general circulation in the City of New York, State of New York.
xii. The Mayor and City Treasurer are hereby authorized to prepare a Preliminary Official Statement and deem it final for the purposes of applicable Securities and Exchange Commission rules, to cause the Preliminary Official Statement to be distributed to prospective purchasers of the Bonds and to make any changes thereto to the date of delivery of said Bonds to make the information contained therein not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they are made, not misleading.
The Mayor and City Treasurer are authorized to cause the final Official Statement, to be distributed to prospective purchasers of the Bonds. The Mayor and City Treasurer are hereby authorized to execute the Official Statement in the name of The City of Dover, to supervise its distribution to prospective purchasers of the Bonds and to make any changes thereto to the date of delivery as aforesaid with respect to the Preliminary Official Statement.
In connection with the sale of the Bonds, the Mayor and Treasurer are authorized to commit the City to make such ongoing disclosure to owners and prospective owners of Bonds as they shall deem to be in the best interest of the City.
xiii. 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.
xiv. In the event there are any excess proceeds of Bonds remaining after the completion of the Project to the extent determined by the Mayor and Council, any such funds shall be applied to pay debt service on the Bonds or for any other lawful purpose authorized by Council.
xv. City Council hereby finds that the City does not reasonably anticipate issuing more than $5,000,000 of obligations of The City of Dover (including the Bonds) during calendar year 1994. 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.
xvi. 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.
xvii. The power to prescribe the final terms, form and contents of the Bonds, 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.
xviii. 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 sale, issuance and delivery of the Bonds.
xix. For the purposes of this Resolution, principal amount of bonds shall be determined without regard to original issue discount.
EXHIBIT A
Police Station Renovation
and Expansion
Construction $ 2,900,000
Financing Costs 100,000
Total Cost $ 3,000,000
EXHIBIT B
No._______________________ $___________________
UNITED STATES OF AMERICA
STATE OF DELAWARE
THE CITY OF DOVER, DELAWARE
GENERAL OBLIGATION BOND
Series 1994
Interest Rate Maturity Date Original Issue Date CUSIP
Registered Owner:__________________________________
Principal Sum:_____________________________________ DOLLARS
THE CITY OF DOVER, in the County of Kent (hereinafter referred to as the "City"), 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 ______________ 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 _______________, and in any order of maturity 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
____________ through _____________ ____%
____________ through _____________ ____
____________ 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 ____________, 1994 (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 1994 Bonds are issuable in the form of registered bonds without coupons in the denominations 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 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 amounts, shall be issued to the transferee in exchange herefor, 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, and the official corporate seal of said City or a facsimile thereof to be imprinted or impressed hereon, and this Bond to be dated _______________, _______.
(SEAL) __________________________________
Mayor, The City of Dover
__________________________________
Treasurer, The City of Dover
EXHIBIT C
NOTICE OF SALE
THE CITY OF DOVER, DELAWARE
$3,000,000 GENERAL OBLIGATION BONDS - SERIES 1994
Notice is hereby given that The City of Dover, Delaware will receive sealed proposals for the purchase of the bonds referred to above (the "Bonds") of THE CITY OF DOVER, DELAWARE (the "City") at the offices of Potter Anderson & Corroon, 350 Delaware Trust Building, 9th and Market Streets, Wilmington, Delaware, until 11:00 a.m. no earlier than _____________, 1994 and no later than _______________, 1994 (the exact date of sale shall be determined by the City and announced, no later than the second business day prior to the date of sale, by telephone or such other manner selected by the City to those requesting such notice as hereinafter provided) at which time and place all proposals received will be publicly opened. Bids may be telecopied to (302) 658-1192 provided that the hereinafter described good faith check must be delivered to the above address prior to the time set for opening bids. The bidder assumes the risk of any error or delay in the telecopied bid.
Description of the Bonds
The Bonds will be dated ____________, 1994 with interest payable from the date of the Bonds commencing _______________ 1, 199___ 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
$ $
The City reserves the right to increase or decrease the principal amount of Bonds in each maturity up to 10%.
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 proposals accepted. No proposal for less than all of the Bonds and no proposal offering to pay less than ___% 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 the highest rates named in the proposal shall not exceed five 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 (_____________, 1994) 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 $________ drawn upon an incorporated 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 price 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 Federal 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 ______________ will be subject to redemption at the option of the City, on or after ______________ and prior to maturity, as a whole or in part at any time, and 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 (Dates Inclusive) Redemption 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 check or draft mailed to DTC or its nominee as the registered owner of the Bonds. Principal on the Bonds will be payable by check or draft delivered to DTC or its nominee 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., as 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 notice of sale. 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 purchaser of the Bonds.
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 ____________, 1994 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 6, 1986. Consequently, the Bonds in the hands of such a financial institution will be subject to the 20% 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 telecopy 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 the City Treasurer at (302) 736-7019. Copies of the Preliminary Official Statement, when available, can be obtained by calling the City Treasurer at (302) 736-7019.
M. C. Karia
Treasurer
City of Dover, Delaware
Dated:__________________