REGULAR MEETING
January 22, 1973
The regular meeting of City Council was held on Monday, January 22, 1973 at 7:30 P.M. with Mayor Carroll presiding. Members present were Messrs Biggs, Harris, Hayes, Holmes, Holpp, Legates, Muir and Walls.
MINUTES
The minutes of the Council meeting of January 8, 1973 were accepted and bore the written approval of Mayor Carroll.
ELECTION RESULTS
The election officials certified to Council the following results of the Municipal Election held on Monday, January 15, 1973.
COUNCILMAN:
First District Alfred S. Biggs 739 Votes
Second District Charles A. Legates, Jr. 743 Votes
Third District John Lepore 60 Votes
Wallace A. Waite 162 Votes
Carleton Walls 500 Votes
Charles L. Witt 319 Votes
Fourth District Victor E. Holpp 740 Votes
TOTAL VOTES CAST 1047
On motion of Mr. Muir, seconded by Mr. Hayes, Council by unanimous vote accepted the results as presented.
J. P. COURT #7 REPORT
The monthly report of the J. P. Court #7 for December was presented to Council along with a check in the amount of $7,538.15. Deferred payments due the City of Dover as of December 31, 1972 are $29,412.88. On motion of Mr. Hayes, seconded by Mr. Biggs, Council accepted the report as presented.
NOTICE OF SALE - 1972 G. O. BONDS
On motion of Mr. Walls, seconded by Mr. Holpp, Council by unanimous roll call vote adopted the following resolution.
WHEREAS, the Mayor and Council of the City of Dover desires to make provisions for the sale of the $3,500,000 of bonds of the City of Dover hereinafter described,
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, as follows:
1. The $3,500,000 bonds of the City of Dover dated December 15, 1972, which are to be issued pursuant to a resolution adopted by the Mayor and Council on January 8, 1973 and which are described in the Notice of Sale hereinafter set forth shall be sold at public sale pursuant to and in accordance with the following Notice of Sale:
NOTICE OF SALE
THE CITY OF DOVER, DELAWARE
$1,500,000 Sanitary Sewer System Bonds, Series of 1972
$1,500,000 Water System Bonds Series of 1972
$500,000 Public Improvement Bonds, Series of 1972
The City of Dover (herein referred to as “City”), a municipal corporation of the State of Delaware, will receive sealed proposals for the purchase of bonds of the City hereinafter described. Such proposals will be received until 12:00 o’clock noon, Eastern Standard Time, on February 8, 1973, at which time all proposals received will be publicly opened and considered by the Mayor and Council of the City at a meeting to be held at such time at City Hall, in the City of Dover, Delaware. Each proposal submitted should be addressed to Jay R. Dougherty, City Clerk, at City Hall, Dover, Delaware, and should be enclosed in a sealed envelope marked “Proposal for Bonds”.
The bonds consist of the following three issues of bonds, viz.:
(1) $1,500,000 Sanitary Sewer System Bonds, Series of 1972, payable in annual installments on June 15 in each year as follows, viz:$25,000 in each of the years 1974 to 1983, inclusive; $50,000 in each of the years 1984 to 1993, inclusive; $75,000 in each of the years 1994 to 2003, inclusive.
(2) $1,500,000 Water System Bonds, Series of 1972, payable in annual installments on June 15 in each year as follows, viz.: $25,000 in each of the years 1974 to 1983, inclusive; $50,000 in each of the years 1984 to 1993, inclusive; $75,000 in each of the years 1994 to 2003, inclusive.
(3) $500,000 Public Improvement Bonds, Series of 1972, payable in annual installments on June 15 in each year as follows, viz: $25,000 in each of the years 1974 to 1993, inclusive.
The Bonds will be dated December 15, 1972, and will be in the denomination of $5,000 each. Interest is payable semi-annually on June 15 and December 15. The bonds are coupon bonds without privilege of registration and are payable at the principal office of the Farmers Bank of the State of Delaware, Dover, Delaware.
The proposal for less than all of the bonds will be considered. Two rates may be named but both must be a multiple of 1/8 or 1/20 of 1%, and the higher rate shall be no more than 1% above the lower rate. A repeated rate will constitute one of the two permitted rates. The bonds of each issue maturing in the same year shall bear the same rate of interest. The interest payable with respect to each bond on any one date will be evidenced by a single coupon. The price offered for the bonds must not be less than par and accrued interest. Unless all bids are rejected, the bonds of the three issues will be awarded to the bidder whose proposal for the bonds of the three issues results in the lowest net interest cost to the City, such net interest cost to be determined by computing the aggregate amount of interest payable on the bonds of all three issues from their date to their respective maturities and by deducting from such aggregate amount the premium, if any.
Each proposal must be accompanied by a certified or bank cashier’s check or checks for $70,000 drawn upon an incorporated bank or trust company and payable to the order of the City, to secure the City against any loss resulting from a failure of the bidder to comply with the terms of his proposal. The check or checks of the bidder whose proposal is accepted will be deposited by the City and credited on the purchase price. The proceeds of the check or checks will be retained by the City as liquidated damages in case the bidder fails to accept the delivery of and pay for the bonds. Checks of unsuccessful bidders will be returned upon award of the bonds. The right to reject any or all of the proposals is hereby reserved.
The bonds will be delivered to the successful bidder on or about March 6, 1973, or as soon thereafter as the bonds can be made ready for delivery, at the City Treasurer’s Office, Dover, Delaware, or any other place designated by the City Treasurer.
The City will furnish without cost to the purchaser or purchasers, at the time the bonds are delivered (1) the opinion of Messrs. Reed, Hoyt, Washburn & McCarthy, of New York City, that the bonds are valid and legally binding obligations of the City and that the City is authorized and required by law to levy on all real property taxable by the City such ad valorem taxes as may be necessary to pay the bonds and the interest thereon without limitation as to rate or amount; and (2) certificates in form satisfactory to said attorneys evidencing the proper execution and delivery of the bonds and receipt of payment therefor, and (3) a certificate, date as of the date of delivery of the bonds, and signed by the officers who signed the bonds, stating that no litigation is then pending or, to the knowledge of such officers, threatened to restrain or enjoin the issuance or deliver of the bonds or the levy or collection of taxes to pay the bonds or the interest thereon, or questioning the validity of the statutes or the proceedings under which the bonds are issued, and that neither the corporate existence or boundaries of the City nor the title of any of the said officers to their respective offices is being contested.
Jay R. Dougherty
City Clerk
2. The City Clerk is hereby directed to publish said Notice of Sale in the Delaware State News and in two newspapers of general circulation published in The City of Dover, and in The Daily Bond Buyer, a financial newspaper published in the City and State of New York, such publication, in each case, to be made not less than ten days prior to the date set for the receipt of sealed proposals.
ADOPTED JANUARY 22, 1973
CENTRAL DOVER BUSINESS ASSOCIATION
A letter was received from the Central Dover Business Association requesting permission to install “Business District” signs at several locations on U.S. Route 13 giving directions to motorists to the downtown area of Dover. This same request was before Council approximately three year ago at which time the Highway Department objected to the placement of such a sign. Apparently at this time they have changed their minds and have granted the CDBA permission pending approval by the Council. On motion of Mr. Holpp, seconded by Mr. Hayes, Council by unanimous vote directed the City Manager to contact the CDBA and request that they submit a sketch and size of the signs they are requesting and that Council at that time will act on this request.
HUEBNER FARM LEASE
The current lease of the Huebner Farm, owned by the City, expires shortly and City Manager James asked the Council for directions in further extension of the lease, or advertising for a new lease since more than one person is interested. The State of Delaware has also notified the City and the present leasee, that there is a portion of this farm on which is “Johnson Grass”, which must be treated immediately. The State Department of Agriculture supervises this treatment. On motion of Mr. Hayes, seconded by Mr. Walls, Council by unanimous vote directed that the farm be advertised for lease on a year to year basis, that also includes the cost of the treatment of the “Johnson Grass”.
ELECTRIC REVENUE REFUNDING BOND CORRECTION RESOLUTION
A one word error was made in the adoption of a resolution at the Council meeting of January 8, 1973 in regard to the Revenue Refunding Bonds. Bond Counsel in New York has recommended the adoption of the following resolution to correct the error. On motion of Mr. Walls, seconded by Mr. Harris, Council by unanimous roll call vote adopted the following resolution.
RESOLUTION AMENDING A RESOLUTION ADOPTED BY THE CITY COUNCIL ON JANUARY 8, 1973 ENTITLED: “RESOLUTION AUTHORIZING THE ISSUANCE OF $13,995,000 ELECTRIC REVENUE REFUNDING BONDS (SERIES 1973) OF THE CITY OF DOVER, DELAWARE PURSUANT TO THE PROVISIONS OF SECTION 211 OF THAT CERTAIN RESOLUTION ADOPTED BY COUNCIL OF THE CITY OF DOVER ON JULY 26, 1965 AND DIRECTING THAT AUTHENTICATION AND DELIVERY THEREOF.” TO CHANGE THE LAST WORD IN THE OPINION OF THE CERTIFIED PUBLIC ACCOUNTANTS MENTIONED IN SECTION 6(B) OF SAID RESOLUTION FROM PROPER TO FAIRLY STATED.
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. Section 6(B) of the resolution, adopted by the City Council on January 8, 1973 the title of which is set forth in the title of this resolution is hereby amended by changing the last word in the opinion of the certified public accounts mentioned in said Section 6(B) from the word “proper” to the words “fairly stated”.
ADOPTED JANUARY 22, 1973
REVENUE ANTICIPATION BORROWING
On motion of Mr. Holmes, seconded by Mr. Biggs, Council by unanimous vote adopted the following resolution authorizing the borrowing of up to $350,000 in anticipation of current revenues to be repaid prior to July 1, 1973.
A RESOLUTION AUTHORIZING THE MAYOR AND CITY TREASURER TO UNDERTAKE TEMPORARY BORROWING AS PROVIDED IN THE CHARTER OF THE CITY OF DOVER.
WHEREAS, the Charter of the City of Dover authorizes and empowers the Council of the City of Dover to anticipate current revenue by borrowing such sum as shall be needed, not to exceed 1% of the total taxable assessment, and
WHEREAS, it is necessary to borrow temporary funds for the current operating requirements of the City of Dover General Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER.
1. That from and after the passage and adoption of this resolution, the Mayor and City Treasurer of the City of Dover shall be empowered and authorized to execute under the seal of the City of Dover any and all instruments, documents, or other evidences of indebtedness as required for the borrowing on a temporary basis a sum not to exceed $350,000.
2. The Mayor and Treasurer of the City of Dover shall be empowered to obtain said funds upon such terms and from such local lending institutions as in their best judgement they deem necessary and proper.
3. Any and all amounts borrowed pursuant to this resolution shall be repaid out of current revenue received hereafter by the General Fund, and not later that June 30, 1973 or thereabout.
ADOPTED JANUARY 22, 1973
DONALD M. CAREY LETTER
A letter was received from Mr. Donald M. Carey, Senior Inspector for the City of Dover, thanking the Council for allowing him the opportunity to attend the code enforcement and administration courses at the University of Wisconsin during the month of January. On motion of Mr. Walls, seconded by Mr. Muir, Council acknowledged receipt of this letter.
E. A. HELMS REQUEST
A piece of correspondence was received from E. A. Helms, in regard to the monument that is located on the grassy area in front of the Post Office. This monument was originally placed on The Green and in recent years was removed to its present location. This inquiry was in regard to having it replaced on The Green. On motion of Mr. Legates, seconded by Mr. Muir, Council referred this request to the Parks Committee for their study and recommendation.
DOVER LIONS CLUB
A letter was received from the Dover Lions Club asking Council to participate in purchasing an ad on a combination outdoor Cushion-Beach Bag. They are selling ads at $25 a unit, a unit being 1 1/4" x 3 ½" in size. They requested a 4 unit ad from the City. On motion of Mr. Holpp, seconded by Mr. Biggs, Council by a vote of 6 ‘yes’ and 2 ‘no’, Messrs Harris and Holmes, authorized the City to purchase a 4 unit ad is requested by the Dover Lions Club. The money received from the ads and sale of these cushion-beach bags is used in the Lions Clubs’s prime civic project, Sight Conservation.
“OBSCENE MOVIES” PETITIONS
A petition was received from local residents numbering approximately 209, opposing the showing of obscene movies in the City of Dover. At this time City Solicitor Rodriguez briefed Council on the proceedings in the court case involving the warrants issued against the movie theater. Mr. Rodriguez stated that new warrants were to be issued due to the fact that the original warrants were incorrectly served. Progress was being made also in the Court of Chancery on this case. The courts determined that the warrants were improperly served and directed that the City reissue the warrants. It is the opinion of the City Solicitor that the warrants were not in error, but they will be reissued. The above petition was filed by the Capitol Baptist Church, Kesselring Avenue, Dover, Delaware.
COUNTRY CLUB ANNEXATION
A letter was read that had been received from City Solicitor Rodriguez in regard to the recent annexation referendum that tool place involving the Country Club Apartments and other lands. This referendum was contested and a court suit was filed by some of the residents in the area. The courts ruled against the City of Dover and Mr. Rodriguez had asked for a motion of reargument. The Chancellor has not altered his original decision despite the apparent difficulties that will be placed upon the City of Dover. Mr. Rodriguez recommends that the City brief the issue of corporations voting in referendum elections before Chancellor Duffy, to try and determine if the City Charter prohibiting the corporations from voting is constitutional. On motion of Mr. Legates, seconded by Mr. Harris, Council by unanimous vote authorized the City Solicitor to proceed with the Court of Chancery in determining the legality of the City of Dover Charter concerning the prohibition of corporations from voting in referendum elections.
Council adjourned at 9:05 PM
Jay R. Dougherty
City Clerk
All orders ordinances and resolutions adopted by City Council at its meeting of January 22, 1973 are hereby approved
Crawford J. Carroll
Mayor
January 24, 1973