REGULAR COUNCIL MEETING

The Regular Council Meeting was held on November 13, 1995 with Council President Christiansen presiding. Council members present were Mr. Lambert, Mr. Tudor, Mr. Leary, Mr. Pitts, Mrs. Malone, Mr. Fenimore, Mr. Salters and Mr. Hare.

Council staff members present were Chief Smith, Mr. Lucas, Mr. O'Connor, Mr. DePrima, Mrs. Boaman and Mr. Pepper.

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.

Mr. Mike Chapman of 863 Schoolhouse Lane referred to a proposed community center in downtown. Mr. Chapman stated his position that a recreational center is needed for the youth of our community. He reminded members that he has suggested in the past that the old Acme building, on Governors Avenue, be developed into a youth recreational center. He also urged more action on the proposal to consider a public swimming pool.

Mr. Javan Davis of 635 Nimitz Drive commended the Planning staff on their Comprehensive Plan workshops. He stated that the workshops are enormously educational to the citizens of Dover and relayed appreciation for being given the opportunity to participate in the proposal for updating the Comprehensive Plan.

The invocation was given by Father Thomas Hanley. The Pledge of Allegiance was led by Boy Scout Troop 903 and their leader, Ron Raab-Long.

AGENDA ADDITIONS/DELETIONS

Council President Christiansen requested an addition of agenda #2A to introduce a letter from the Delaware Development Office. Mrs. Malone moved for approval of the agenda as amended, seconded by Mr. Salters and unanimously carried.

ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF OCTOBER 23, 1995

The Minutes of the Regular Council Meeting of October 23, 1995 were unanimously approved by motion of Mrs. Malone, seconded by Mr. Salters and bore the written approval of Mayor Hutchison.

ADOPTION OF MINUTES - QUARTERLY OPEN TOWN MEETING OF NOVEMBER 7, 1995

The Minutes of the Quarterly Open Town Meeting of November 7, 1995 were unanimously approved by motion of Mr. Leary, seconded by Mr. Fenimore and bore the written approval of Mayor Hutchison.

PROCLAMATION - NATIONAL BIBLE WEEK

The City Clerk read into the record the following Proclamation.

WHEREAS, the Bible is the foundational document of the Judeo-Christian principles upon which our nation was conceived; and

WHEREAS, the Bible has been a constant source of moral and spiritual guidance for Americans throughout our history; and

WHEREAS, the Bible has profoundly influenced our nation’s art, literature, music, laws and sense of charity; and

WHEREAS, the Bible continues to provide inspiration, hope and comfort for millions of Americans today; and

WHEREAS, for fifty-five years, women and men of all faiths have banded together in the Laymen’s National Bible Association to sponsor National Bible Week as a time to remind their fellow Americans of the Bible’s unique place in American life; and

WHEREAS, this annual emphasis has helped to strengthen spiritual understanding throughout America by encouraging personal reading and study of the Bible.

NOW, THEREFORE, I, JAMES L HUTCHISON, MAYOR OF THE CITY OF DOVER, do hereby proclaim November 19-26, 1995 as NATIONAL BIBLE WEEK in the City of Dover and urge all my fellow citizens to participate in the observances by reading the Bible and discovering for themselves its values for personal and community life.

QVC DELAWARE SHOW

The City Clerk read into the record the following letter, written to Mayor Hutchison, from Mr. Clinton C. Bunting, Policy and Planning Division of the Executive Department of Delaware Development Office:

“I would like to take this opportunity to extend my appreciation of your taking the time from your busy schedule to be a participant in the QVC show held recently at the Delaware Agriculture Museum. It is gratifying to report that the show was a resounding success, both in sales and attendance.

We have received word from QVC that the Delaware show was one of the best of the tour thus far and the DuPont teflon product was not only the best of this show, but the top product of the entire tour. They only have four states to go, so you see that this speaks well for the State of Delaware.

Again, our thanks and if this office can ever be of service to you, please do not hesitate to call on us.”

PROPOSED RESOLUTION - BOND SALE

The City Council authorized a $3 million General Obligation bond issue for the police station expansion and renovation project. Six bids were received and opened int eh presence of our bond counsel and our financial advisors. The winning bidder, with the lowest True Interest Cost of 5.2491%, was Merrill Lynch. The Chairman of the Legislative and Finance Committee, Mr. Salters, explained the details of the bond sale and requested approval of a resolution for Council’s confirmation of acceptance of the bid.

Responding to Mr. Fenimore’s question on the true interest rate, Mr. Karia stated that although Exhibit C shows the true interest rate of 5.2483, minor changes occurred in Merrill Lynch’s calculations, changing the rate to 5.2491 which is still the lowest rate.

By motion of Mr. Salters, seconded by Mr. Leary, Council adopted the following Resolution by a unanimous roll call vote.

A RESOLUTION MAKING CERTAIN COVENANTS AND RATIFYING CERTAIN ACTIONS TAKEN BY THE CITY TREASURER AND MAYOR RELATING TO THE SALE OF THE CITY OF DOVER, DELAWARE $3,000,000 GENERAL OBLIGATION BONDS SERIES 1995

WHEREAS, by Resolution dated June 27, 1994, as amended by Resolution adopted October 9, 1995 (collectively, the “Bond Resolution”) the City Council of the City of Dover, Delaware (the “City Council”) authorized the City of Dover (“the City”) to issue its General Obligation Bonds in the aggregate principal amount up to $3,000,000 to make certain renovations and enlargements to the City’s police station, and authorized the Mayor and City Treasurer to take certain action in connection therewith; and

WHEREAS, after advising of the sale of the bonds and the receipt of bids in a public competitive sale, the Mayor and City Treasurer have awarded the sale of the bonds to Merrill Lynch & Co., Inc., which submitted the bid resulting in the lowest true interest cost on the bonds;

WHEREAS, the City Council desires to ratify certain actions taken by the City Treasurer and the Mayor and to make certain covenants with respect to the bonds;

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET, AS FOLLOWS:

The City shall issue its General Obligation Bonds, Series 1995, in the aggregate principal amount of $3,000,000 (the “Series 1995 Bonds”), which shall be dated November 1, 1995, shall pay interest semi-annually on January 1 and July 1 of each year commencing July 1, 1996, and shall mature and bear interest as set forth below:

Year (July 1)	Principal  Amount	Interest    Rate	Year (July 1)	Principal  Amount	Interest    Rate
1997	$ 10,000	4.000%	2007	$ 180,000	4.875%
1998	10,000	4.000	2008	200,000	4.900
1999	15,000	4.000	2009	175,000	5.000
2000	65,000	4.150	2010	185,000	5.125
2001	65,000	4.250	2011	195,000	5.125
2002	65,000	4.350	2012	205,000	5.200
2003	175,000	4.500	2013	220,000	5.250
2004	155,000	4.600	2014	230,000	5.250
2005	170,000	4.625	2015	245,000	5.300
2006	175,000	4.750	2016	260,000	5.300

i.The Series 1995 Bonds maturing on or after July 1, 2004, are subject to redemption at the option of the City, in whole or in part, in any order of maturity selected by the City, at any time and from time to time on or after July 1, 2003, at the redemption price of par plus interest accrued to the date of redemption without premium. The City shall give notice of redemption not less than thirty days but not more than 60 days prior to a scheduled redemption date.

ii.The Series 1995 Bonds will be issued in book-entry form with no physical distribution of Bond certificates. One Bond certificate for each maturity will be issued in the name of The Depository Trust Company (“DTC”) or its nominee and immobilized in its custody. The City Treasurer’s actions in executing and delivering on behalf of the City a Blanket Letter of Representations to DTC in the form attached hereto as Exhibit A is hereby ratified and affirmed.

iii.The City hereby ratifies the form and use of the Preliminary Official Statement dated October 16, 1995, as presented to this meeting and its distribution to prospective purchasers. The City Council further authorizes and directs the City Treasurer to distribute the Official Statement, in substantially the same form as the Preliminary Official Statement with appropriate modifications for interest rates, maturities and the like, to prospective purchasers of the Series 1995 Bonds.

iv.The City Treasurer and Mayor are further authorized to execute the Official Statement in the name of the City of Dover, to supervise its distribution to prospective purchasers and to make any changes to the Official Statement from the date hereof to the date of delivery of the 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 any statement therein, in light of the circumstances under which it is made, not misleading.

v.The City covenants for the benefit of the owners of the Series 1995 Bonds (I) that no use of the proceeds of the Series 1995 Bonds or the earnings thereon will be made, and no other action will be taken, which would cause the Bonds to be “arbitrage bonds” within the meaning of Section 148(a) of the Code, (ii) that all action with respect to the Series 1995 Bonds required to be taken to avoid characterization of the Series 1995 Bonds as “arbitrage bonds” under Section 148 of the Code shall be taken, (iii) that the City will take all reasonable steps to ensure that interest on the Series 1995 Bonds is not included in gross income of the owner of any Series 1995 Bond for purposes of federal income taxation and (iv) that the City will take no action to cause the Series 1995 Bonds to become “private activity bonds” as that term is used in Section 141(a) of the Code.

vi.The City Council hereby ratifies the form of the Notice of Sale dated October 16, 1995, distributed with the Preliminary Official Statement, and the abbreviated form of the Notice of Sale appended hereto as Exhibit B which was published in the Delaware State News prior to the sale date. The City Council deems such publications to be in full compliance with all applicable publication requirements.

vii.Pursuant to the Notice of Sale, the Mayor and City Treasurer received six (6) bids on November 8, 1995, which were publicly opened, read and considered with the bid attached hereto as Exhibit C from Merrill Lynch & Co., Inc. being the bid with the lowest true interest cost as confirmed by Penn Capital Advisors, an independent financial advisory firm.

viii.The City Council hereby approves and ratifies the actions of the City Treasurer and Mayor in awarding the sale of the Series 1995 Bonds to Merrill Lynch & Co., Inc. and accepts the bid for the purchase of the Series 1995 Bonds as set forth int eh signed Bid Form attached hereto as Exhibit C at a purchase price of $2,940,000 plus accrued interest.

ix.The City Treasurer and Mayor are authorized and directed to take all actions necessary to cause the City to issue the Series 1995 Bonds and to carry out the terms and the purposes of the financing, including the delivery of the Official Statement and the execution and delivery of necessary closing documents and certificates.

x.The Bond Resolution is hereby ratified and affirmed exempt to the extent modified herein.

ADOPTED: November 13, 1995

PUBLIC HEARING - PROPOSED RATE INCREASE - LIMITED BASIC SERVICE - COMCAST CABLEVISION OF DELAWARE, INC.

Comcast Cablevision of Delmarva, Inc. has applied to the City for a net increase of 39 cents per month for Limited Basic cable television service. The inflation adjustment is a 40 cent increase and a programming adjustment of a one cent reduction, resulting in a net increase of 39 cents. A public notice was published in two local newspapers. Comcast has submitted F.C.C. Form 1210, containing the rate adjustment calculations, to the City. The public hearing process will provide City Council and the public an opportunity to receive and review the data.

Mr. Lambert, Chairman of the Communications Committee, reminded Council and the public that the current basic cable television rate is $14.16 per month and the proposed rate is $14.55 per month, for an increase of 39 cents per month. The 1992 Cable Act gave municipalities the authority to regulate basic cable services. This authority is somewhat limited, in that we must follow rules established by the FCC. Expanded services are regulated by the FCC and Comcast is increasing their expanded service rate from $11.22 per month to $11.85 per month. Complaints related to the expanded service rate should be filed with the FCC. Since the City has no direct control over the increase in expanded services, Mr. Lambert requested that comments and questions be limited to the proposed increase in basic services.

Council President Christiansen declared the public hearing open.

Mr. Richard Ornauer of 17 Mifflin Road requested that during negotiations for the franchise agreement that the Communications Committee request that Comcast carry the Travel Channel. He stated that it is educational, and covers history, geography, anthropology and philosophy, as well as containing excellent travel information. Mr. Lambert stated that the City’s authority to regulate basic services does not include authority to regulate programming. He recommended that suggestions of this nature be forwarded to Comcast.

Mr. Javan Davis of 635 Nimitz Drive reminded Council that prior to regulation of rates by the federal government, there was no control over rates. Cable companies showed no mercy to those that cannot afford their rates. Although Council’s control is limited, Mr. Davis requested that they use their power to maintain the best possible rates for the citizens of Dover. He stated his opinion that Comcast continually requests rate increases and felt that there has to be some limit on their rates.

Mr. Brian Lynch, General Manager of Comcast Cable, requested favorable action on their rate increase request. He stated that all requirements of the FCC have been followed. The request for the increase is a pass-through of inflationary costs at a rate utilized by the FCC. Mr. Lynch explained that one time per year, the general business costs are allowed to be passed through as an inflationary pass-through (a number developed by the Commerce Department and approved by the FCC). The current inflationary rate of 2.96% encompasses a period from June 1994 through June 1995. Mr. Leary and Mr. Fenimore questioned the inflationary rate and requested that the Communications Committee verify its accuracy.

Mr. Hare felt that the City’s control is so limited that there is very little that can be done to deny this rate increase. Mr. Lynch stated that the City has authority to review and verify the accuracy of their filing which includes a denial/approval process. Should the increase be denied, then Comcast has the right to request approval through the court system. Mr. Tudor relayed that he felt it unfair that the City has the right to regulate cable rates but has no jurisdiction over the product offered. He felt that the two should be connected in some way so that if the City Council is dissatisfied with the service, they would have reason for denying rate increases. Mr. Lambert explained that the City is permitted to address quality of service, such as the quality of reception, but has no control over programming.

Ms. Delores Townsend of Pickering Beach Road complained that the cable company does not service her area and she has no other cable company choices. Mr. Lambert explained that the City of Dover does not have regulatory authority for areas outside the City limits. He suggested that she contact Comcast directly with her concerns.

Council President Christiansen declared the hearing closed.

Mr. Lambert moved that the matter be referred to the Communications Committee for review and recommendation to Council by November 27, 1995, seconded by Mr. Salters and carried with Mrs. Malone abstaining.

LEGISLATIVE AND FINANCE COMMITTEE

The Legislative and Finance Committee met on October 23, 1995 with Chairman Salters presiding.

Proposed Ordinance - Bee Keeping in Residential Neighborhoods

The committee again reviewed the matter of bee keeping in residential neighborhoods. The City Manager submitted an ordinance that would regulate the keeping of bees in the City. However, after reviewing the proposed ordinance, representatives of the Department of Agriculture requested that Council not adopt the ordinance and that they delay further action until an expert from the University of Delaware is back in the country. Since the beehive in Heatherfield has been removed, Mr. O’Connor had no objections to delaying action on the proposed ordinance.

The committee recommended that the matter be referred back to the City Manager to allow time for him to gather all the information he needs for submission of a proposed ordinance on bee keeping, or an update of its status, by January 1996.

Mr. Salters moved for approval of the committee’s recommendation, seconded by Mr. Leary and unanimously carried.

Mr. Salters moved for acceptance of the Legislative and Finance Committee Report, seconded by Mr. Leary and unanimously carried.

APPOINTMENT - DOWNTOWN DOVER DEVELOPMENT CORPORATION

Mayor Hutchison requested the appointment of Susan O’Neill, newly appointed Manager of Main Street, to the Downtown Dover Development Corporation. Mrs. O’Neill would fill the unexpired term of Nan Hagen, former Main Street Manager, which will expire April 23, 1996.

Mr. Hare moved for confirmation of the appointment, seconded by Mr. Leary and carried by a unanimous roll call vote.

Mr. Hare moved for adjournment, seconded by Mr. Leary and unanimously carried.

Meeting Adjourned at 8:05 P.M.

                                                                                    DEBRAH J. BOAMAN

                                                                                    CITY CLERK

All orders, ordinances and resolutions adopted by City Council during their meeting of November 13, 1995, are hereby approved.

                                                                                    JAMES L. HUTCHISON

                                                                                    MAYOR

/DJB