REGULAR MEETING
September 10, 1984
The Regular Meeting of Council was held on September 10, 1984 at 7:30 p.m. with Mayor Carroll presiding. Members present were Messrs. Richter, Tudor, Boaman, Bulley, Christiansen, Witt and Shevock. Mr. Weyandt was absent.
The invocation was given by the Reverend J.H. Williams, Council Chaplain.
RESOLUTION - HONORING BISHOP L.T. BLACKSHEAR (BIBLEWAY TEMPLE CHURCH OF GOD IN CHRIST) - REVEREND O.H. SPENCE, PASTOR EMERITUS (WHATCOAT UNITED METHODIST CHURCH), AND REVEREND DR. J.H. WILLIAMS (UNION BAPTIST CHURCH)
By motion of Mr. Witt, seconded by Mr. Christiansen, Council adopted the following resolution:
WHEREAS, on Saturday, September 15th, three respected Dover citizens will be honored for their participation in their church and community affairs, especially the voluntary program of providing aid and food for the needy in this City, and
WHEREAS, the Kirkwood Community Center Agency, Inc. has served 24,200 hot platters and has had tutoring programs for grades 1 to 12 since 1981. Numerous fund raising, social, entertaining and enlightening activities have taken place by this Agency, and
WHEREAS, the major fund raising activity this year is having a banquet honoring these three religious pioneers of Dover:
Bishop L.T. Blackshear - Bibleway Temple Church of God in Christ
Rev. O.H. Spence - Pastor Emeritus - Whatcoat United Methodist Church
Rev. Dr. J.H. Williams - Union Baptist Church
Bishop Blackshear was born in Alabama and is pastor of three churches. He has been a minister for 47 years and a pastor for 46 years. Bishop Blackshear holds degrees from Moody Bible Institute in Chicago, New York Theological Seminary and Doctor and Divinity and Doctor of Law degrees from the National College of Canada.
Rev. O.H. Spence was born on may 9, 1890 in Maryland. In 1918 Rev. Spence entered the ministry as a full time pastor. In 1949 it was conferred upon him a degree of Doctor of Laws by Delaware State College. Rev. Spence is Chaplain of the House of Representatives and of the Delaware State College Alumni Association.
Rev. Dr. J.H. Williams was born on April 4, 1895 in Mississippi. In 1948 he received the Doctor of Theology Degree from the Union Baptist Seminary. He also received an Honorary Doctor of Divinity Degree from the same institution. In 1935 Rev. Williams joined the Union Baptist Church an is presently serving as Chaplain for the Dover City Council.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. The Mayor and Council express their appreciation and gratitude to these three outstanding religious leaders for their time and efforts in participating in this worthwhile agency.
2. The Mayor and Council direct the City Clerk to make this Resolution a part of the permanent records of the City of Dover in expression of their appreciation for the dedicated services of these three religious leaders.
ADOPTED: September 10, 1984
It was noted that anyone interested in attending a banquet to be held by the Kirkwood Community Center Agency, Inc. to honor the three religious pioneers of Dover on September 15th should contact Councilman Bulley for reservations.
AGENDA ADDITIONS/DELETIONS
Mr. Boaman requested an additional agenda item under correspondence concerning a letter from Curtis E. Wright, relating to non-resident library card fees.
Mayor Carroll added items concerning letters from Heatherwood, Inc. on annexation of lands on the N. duPont Highway and Denneys Road; a letter of appreciation from Kent General Hospital on ground breaking ceremonies; correspondence from Kent County Firemen’s Association on paramedic service; and a telex from Conrail concerning a function in conjunction with the Harrington Heritage Day.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF AUGUST 27, 1984
The Minutes of the Regular Council Meeting of August 27, 1984 were unanimously accepted by motion of Mr. Boaman, seconded by Mr. Bulley and bore the written approval of Mayor Carroll.
WATER AND SEWER REVENUE BOND ISSUE - SERIES 1984
Mr. Boaman moved for adopted of a bond resolution that would approve an aggregate principal amount of $3,070,000 for the issuance of water and sewer revenue bonds, series 1984. The motion was seconded by Mr. Christiansen.
Questioned by Mr. Richter, Mr. Bartolotta stated that the entire cost of the issue would be from 1-3% of the principal amount of the bond issue. The bond issue would fund the construction of two water towers, the Puncheon Run sewer project, and Dover Brook Gardens sewer project with a total project cost of 2.6 to 2.8 million dollars.
By unanimous roll call vote (Mr. Weyandt absent) with Mr. Shevock abstaining, Council adopted the following resolution:
A Resolution providing for the issuance and sale of The City of Dover, Water and Sewer Revenue Bonds, Series 1984 in the aggregate principal amount up to $3,070,000, and related matters.
THE CITY OF DOVER RESOLVES:
Section 1. The Council finds it advantageous to issue revenue bonds of the City to finance the costs of water and sewer facilities for the City.
NOW, THEREFORE, the Council directs:
Section 2. Definitions. As used in this Resolution, the following words shall have the following meanings:
1. “Bonds” means The City of Dover, Water and Sewer Revenue Bonds, Series 1984 and any Parity Bonds or other parity obligations issued pursuant to this Resolution.
2. “City” means The City of Dover, a municipal corporation of the State of Delaware.
3. “Charter” means the charter of the City, as amended.
4. “Construction Fund” means the Water and Sewer Construction Fund maintained by the City.
5. “Council” means the council of the City.
6. “Default” means any event specified in Section 13 (A) of this resolution.
7. “Gross Revenues” means all fees and charges resulting from provision of water and sewer services, revenues from product sales, and other revenues required to be placed in the Water and Sewer Fund under this Resolution, and any interest earnings on the Water and Sewer Fund which are held in the Water and Sewer Fund; however, Gross Revenues does not include: (a) any payments of assessments levied against benefitted properties; (b) the proceeds of any grants, (c) the proceeds of any borrowing for capital improvements; (d) the proceeds of any casualty insurance which the City intends to utilize for repair or replacement of Water and Sewer Facilities.
8. “Net Operating Revenues” means the Gross Revenues less the Operating Expenses.
9. “Operating Expenses” means all expenses incurred for operation, maintenance and repair of the water and sewer system, including but not limited to administrative expenses, financial and auditing expenses, insurance premiums, claims (to the extent monies are not available from proceeds of insurance), taxes, legal and engineering expenses relating to operation and maintenance, payments and reserves for pension, retirement, health, hospitalization, and sick leave benefits, payments to reserve funds, fees due others (including Kent County) for sewer treatment service, and any other similar expenses to be paid to the extent property and directly attributable to operations of the system. Operating Expenses do not include payments of the City for debt service on any existing indebtedness of the City.
10. “Parity Bonds” means any revenue bonds or other obligations of the City which comply with the provisions of Section 12 of this Resolution for the issuance of Parity Bonds.
11. “Paying Agent and Registrar” means that entity which is under contract with the City to serve as paying agent and registrar for the Series 1984 Bonds.
12. “Project” means in the aggregate: two million gallon water tanks, the Puncheon Run Sewer Project, and the Dover Brook/College Road Whiteoak Sewer Project to be constructed by the City.
13. “Redemption Fund” means the Series 1984 Water and Sewer Debt Redemption Fund maintained in trust by the Paying Agent and Registrar for the benefit of the Bondholders to hold funds to be used to pay Bond principal and interest.
14. “Reserve Account” means a separate account in the Redemption Fund in which the City agrees to maintain an amount equal to the maximum annual debt service on all outstanding Bonds for any twelve month period commencing December 15 and ending December 14 during which any Bond is outstanding excluding period November 1, 1984 to December 14, 1985 (the “Maximum Annual Debt Service”).
15. “Reserve Account Deficiency” means any amount by which the Maximum Annual Debt Service on all Bonds outstanding at the end of a fiscal year exceeds the amount on deposit in the Reserve Account at the end of that fiscal year.
16. “Water and Sewer Fund” means the Water and Sewer Fund maintained by the City into which the Gross Revenues are deposited.
17. “Water and Sewer Facilities” means all real and personal property now or hereafter established, owned, operated, used or maintained by the City, within or without its corporate limits, for the system of water supply and the system for collecting, treating and disposing of sewage, together with all property, rights, easements and interests pertaining thereto or acquired in connection therewith.
Section 3. The Series 1984 Bonds. Pursuant to the authority of Chapter III, Volume 52, Laws of Delaware, as amended by Chapter 340, Volume 57, Laws of Delaware and the City Charter, Chapter 158, Volume 36, Laws of Delaware, as amended, the Council hereby authorizes and directs the issuance of The City of Dover, Water and Sewer Revenue Bonds, Series 1984, in the aggregate principal amount up to $3,070,000. The Bonds shall be dated November 1, 1984, shall be in registered form, and shall mature on the fifteenth day of December in the following years and amounts:
Year Amount Year Amount
1985 $60,000 1995 $135,000
1986 70,000 1996 150,000
1987 70,000 1997 165,000
1988 75,000 1998 180,000
1989 85,000 1999 200,000
1990 90,000 2000 220,000
1991 100,000 2001 240,000
1992 105,000 2002 265,000
1993 115,000 2003 295,000
1994 125,000 2004 325,000
Principal and interest on the Series 1984 Bonds shall be payable through the office of the Paying Agent and Registrar of the City in the manner to be established by the City prior to closing of the Series 1984 Bonds. The Bonds shall be special obligations of The City of Dover, and shall be payable solely from the Net Operating Revenues, as provided by this Resolution.
Section 4. Redemption. All or any portion of the Series 1984 Bonds maturing after December 15, 1994, shall be subject to redemption at the option of the City in inverse order of maturity and by lot within a maturity on December 15, 1994 and any interest payment date thereafter at the following prices (expressed as a percentage of the principal amount redeemed) plus accrued interest to the redemption date:
Redemption Date Redemption Price
December 15, 1994 and June 15, 1995 102.0%
December 15, 1995 and June 15, 1996 101.5%
December 15, 1996 and June 15, 1997 101.0%
December 15, 1997 and June 15, 1998 100.5%
December 15, 1998 and thereafter 100.0%
Notice of redemption shall be mailed by certified mail to the registered holders of the Bonds to be redeemed not less than thirty days prior to intended redemption date; however, any failure to give notice shall not invalidate the redemption of the Series 1984 Bonds. All Bonds called for redemption shall cease to bear interest from the date designated in the redemption notice and shall cease to be entitled to the lien and benefits of this Resolution provided that funds sufficient for their redemption are on deposit on the redemption date.
Section 5. Form of Bond. The Series 1984 Bonds shall be in substantially the following form:
STATE OF DELAWARE
KENT COUNTY
THE CITY OF DOVER
WATER AND SEWER REVENUE BOND, SERIES 1984
No. R
INTEREST RATE MATURITY DATE ORIGINAL ISSUE DATE CUSIP
REGISTERED OWNER:
PRINCIPAL SUM: DOLLARS
THE CITY OF DOVER, in the County of Kent, State of Delaware, for value received, hereby promises to pay, solely from the sources hereinafter described, to the registered owner named above, or registered assigns or legal representative, on the maturity date stated above, upon the presentation and surrender hereof the principal sum stated above and to pay to the registered owner hereof on the applicable record date, solely from the same sources, interest on such principal sum from the date hereof at the interest rate stated above per annum, payable on each June 15 and December 15, beginning June 15, 1985, until payment of such principal sum shall have been made. Principal and any redemption premium and interest with respect to this Bond shall be paid by check drawn on the Paying Agent and Registrar of the City, which shall be mailed no later than the dates due, without grace. Payment shall be mailed to the name and address of the Bondholder as it appears on the bond register on the fifteenth day prior to the payment date.
All or any portion of the Bonds of this issue maturing after December 15, 1994 and any interest payment date thereafter at the following prices (expressed as a percentage of the principal amount redeemed) plus interest accrued to the redemption date:
Redemption Date Redemption Price
December 15, 1994 and June 15, 1995 102.0%
December 15, 1995 and June 15, 1996 101.5%
December 15, 1996 and June 15, 1997 101.0%
December 15, 1997 and June 15, 1998 100.5%
December 15, 1998 and thereafter 100.0%
Notice of redemption shall be mailed by certified mail to the registered holders of the Bonds to be redeemed not less than thirty days prior to the intended redemption date; however, any failure to give notice shall not invalidate the redemption of the Series 1984 Bonds. All Bonds called for redemption shall cease to bear interest from the date designated int eh redemption notice and shall cease to be entitled to the lien and benefits of the Resolution provided that funds sufficient for their redemption are on deposit on the redemption date.
This Bond is one of the Water and Sewer Revenue Bonds, Series 1984 of The City of Dover, and is issued by The City of Dover for the purpose of providing funds for the construction of water and sewer facilities, and is issued in full and strict accordance and compliance with all of the provisions of the Charter of The City of Dover, and the Constitution and statutes of the State of Delaware.
The City may issue Parity Bonds to finance the construction, completion, repair and improvement of water and sewer facilities or the refunding of outstanding Bonds upon meeting certain conditions set forth in the Resolution which Parity Bonds shall rank on a parity with the Series 1984 Bonds in the lien and benefits of the Resolution.
This Bond is not a general obligation or debt of The City of Dover but is payable solely from the Net Operating Revenues of the Water and Sewer Facilities as provided in Resolution of the City enacted September 10, 1984 (the “Resolution”) and the holder hereof has no right to compel the levy of any tax for the payment of this Bond or the interest to accrue hereon. The City of Dover covenants and agrees with the holder of this Bond that it will keep and perform all of the covenants of this Bond and of the Resolution. The City of Dover has pledged the Net Operating Revenues of the Water and Sewer Facilities to the payment of principal and interest on this Bond.
The Series 1984 Bonds are issuable in the form of registered bonds without coupons in the denominations of $5,000 or any integral 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 Paying Agent and Registrar of the City, in exchange for an equal aggregate principal amount of registered Bonds, of the same maturity and of any other authorized denominations in the manner, subject to the conditions and upon the payment of the charges provided in the Resolution.
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 Paying Agent and Registrar of the City 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 bond or bonds, or the same series and maturity and in the same aggregate principal amounts, shall be issued to the transferee in exchange hereof 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 TESTIMONY WHEREOF, the Council of The City of Dover by Resolution duly adopted, has caused this Bond to be executed with the facsimile signatures of its Mayor and Treasurer, has caused the City corporate seal to be printed or affixed hereto, and has caused this Bond to be authenticated with the manual signature of an authorized officer of its Paying Agent and Registrar, all as of the first day of November, 1984.
Mayor, The City of Dover
Countersigned:
Treasurer, The City of Dover
The foregoing Bond is one of the Water and Sewer Revenue Bonds, Series 1984 which is authorized to be issued pursuant to Resolution dated September 10, 1984 of the City.
Authenticating Agent
Section 6. Disposition of Bond Proceeds. Interest accrued from the date of the Bonds until the date of closing and capitalized interest in the amount of $125,000 shall be placed in the Redemption Fund and shall be used to pay interest Series 1984 Bonds. An amount equal to the Maximum Annual Debt Service on the Series 1984 Bonds shall be placed in the Reserve Account. The balance of the Bond proceeds shall be placed in the Construction Fund and shall be disbursed only to finance the Project and costs incurred in connection with the issuance of the Series 1984 Bonds.
Monies in the Redemption Fund and the Reserve Account may be invested at the direction of the City in U.S. Government Investments and monies in the Construction Fund may be invested by the City in Qualified Investments. Earnings from investment of the funds in the Construction Fund shall be maintained in the Construction Fund shall be maintained in the Construction Fund, and shall be treated and disbursed as Bond proceeds. Earnings from investment of the funds in the Redemption Fund and Reserve Account shall annually be deposited in the Water and Sewer Fund after certification of sufficiency required in Section 8 infra. Any proceeds of the Series 1984 Bonds remaining after payment of all Project and issuance costs shall be transferred to the Water and Sewer Fund.
For the purposes of this Section 6, “U.S. Government Investments” shall include any obligations fully and unconditionally guaranteed by the United States of America and “Qualified Investments” shall include (a) U.S. Government Investments, (b) obligations issued or guaranteed by any agency controlled by or acting as an instrumentality of the United States of America, (c) repurchase agreements with respect to obligations mentioned in (a) and (b) above with banks provided that the City or the Paying Agent and Registrar has possession and a perfected security interest in the collateral security which must continuously have a market value equal to the amount invested, and (d) certificates of deposit issued by and time deposits in any bank provided such investment is fully insured by the Federal Deposit Insurance Corporation or the Federal Saving and Loan Insurance Corporation or, to the extent not insured, collateralized by U.S. Government Investments.
Section 7. Pledge and Disposition of Net Operating Revenues. The City hereby pledges the Net Operation Revenues to the payment of principal and interest on all Bonds.
The City hereby covenants with the holders of the Bonds that it will, so long as any Bonds remain outstanding, make the following deposits from the Net Operating Revenues into the Redemption Fund.
(1)Commencing on December 15, 1984, and monthly thereafter the City will deposit in to the Redemption Fund an amount equal to one-sixth (1/6th) of the amount necessary to pay Bond interest which will become due during the twelve months following the deposit. Prepayment of monthly deposits will fulfill this requirement. Notwithstanding the foregoing, the City will deposit into the Redemption Fund from the Net Operating Revenues an amount sufficient to permit all interest due on the Bonds to be paid on the date it is due.
(2)Commencing on December 15, 1984, and monthly thereafter, the City will deposit into the Redemption Fund an amount equal to one-twelve (1/12th) of the amount necessary to pay any Bond principal which will become due during the twelve months following the deposit. Prepayment of monthly deposits will fulfill this requirement. Notwithstanding the foregoing, the City will deposit into the Redemption Fund from the Net Operating Revenues an amount sufficient to permit all principal due on the Bonds to be paid on the date it is due.
(3)On the first day of each month the City shall deposit into the Reserve Account an amount equal to one-twelfth (1/12th) of any Reserve Account Deficiency determined to exist on each December 15 valuation.
Except in the event of a continuing Default, Net Operating Revenues on deposit in the Water Sewer Fund may be expended by the City for the following purposes and in the following priority.
First: Operating Expenses.
Second: Redemption Fund and Reserve Account Deposits.
Third: Debt service on other debt obligations of the City to the extent that the proceeds of such obligations were expended for Water and Sewer Facilities.
Fourth: Expenditures for capital improvements to the Water and Sewer Facilities approved by Council for the current fiscal year.
Fifth: any other lawful purpose, whether or not for the benefit of the Bondholder or for the Water and Sewer facilities; provided that no expenditure or transfer shall be made pursuant to this item Fifth without the prior certification of the Mayor or the City Manager, to be filed with the Paying Agent and Registrar, that all obligations set forth in items First through Fourth are current and that such proposed expenditure or transfer would not impair the City’s ability to meet its obligations under this Resolution.
Section 8. Reserve Account. The City shall maintain a balance in the Reserve Account at least equal to the Maximum annual Debt Service on all outstanding Bonds. If the balance in the Reserve Account falls below the Maximum Annual Debt Service on all outstanding Bonds, the balance will be replenished as provided in Section 7 (3), above. The Paying Agent and Registrar shall certify to the City the fair market value of the Reserve Account as of the fifteenth day of each December for the purpose of determining the balance in such account.
Monies required to be maintained in the Reserve Account will be used only to pay principal and interest on the Bonds, and only in the event that the Net Operating Revenues and other monies in the Redemption Fund are insufficient to pay Bond principal and interest when due.
Any amounts in the Reserve Account on the fifteenth day of each December in excess of the Maximum Annual Debt Service on all outstanding Bonds may be transferred to the Water and Sewer Fund.
Any surplus remaining in the Reserve Account after all Bonds have been paid shall be deposited in the Water and Sewer Fund.
Section 9. Rate Covenant. The City covenants that it will charge fees in connection with the operation of the Water and Sewer Facilities which are projected to generate Net Operating Revenues at least equal to 1.20 times the maximum annual debt service on all outstanding Bonds. If the Net Operating Revenues fail to meet this level, the City shall promptly increase its fees to a level so that Net Operating Revenues are projected to meet the required level.
Section 10. General Covenants. The City hereby covenants and agrees with the holders and owners of all outstanding Bonds as follows:
(1)That it will, to the extent the Net Operating Revenues are sufficient promptly cause the principal and interest on the Bonds to be paid as they become due.
(2)That it will maintain complete books and records relating to the operation of the Water and Sewer Facilities, the Water and Sewer Fund, the Construction Fund, the Redemption Fund and the Reserve Account, in accordance with generally accepted accounting principles, and will cause such books and records to be audited annually at the end of each fiscal year, and an audit report prepared and made available for the inspection of Bondholders.
(3)That it will not issue Bonds or other obligations having a claim superior to the claim of the Bonds upon the Net Operating Revenues.
(4)That it will promptly deposit into the Water and Sewer Fund all sums required tobe so deposited.
(5)That it will operate the Water and Sewer Facilities in a sound, efficient and economic manner, and will not enter into any agreement to provide free service or services except for fire fighting, hydrant flushing, or in case of emergency.
(6)That it will maintain its contracts with Kent County for the treatment of sewage collected by the City or will otherwise provide for the treatment or disposal of such sewage.
Section 11. Registration and Transfer.
(1)The transfer of Bonds shall be registered on the Bond Register, which shall be kept for this purpose at the offices of the Paying Agent and Registrar of the City, upon surrender thereof by the Registered Owner in person or by his attorney duly authorized in writing together with a written instrument of transfer in form satisfactory to the City duly executed by the Registered Owner or his attorney duly authorized in writing free of charge except for any applicable transfer tax or other governmental charge. Upon any such registration or transfer, the Paying Agent and Registrar shall issue in the name of the transferee a new registered Bond or bonds of the same series and maturity.
(2)The City and its Paying Agent and Registrar may deem and treat the Registered Owner of any registered Bond as the absolute owner of such Bond for the purpose of receiving any payment on such Bond and for all other p