SPECIAL MEETING

October 20, 1970

A special meeting of City Council was held on Tuesday, October 20, 1970 at 7:30 P.M. with Mayor Carroll presiding. Members present were Messrs Biggs, Coyle, Hastings, Hayes, Holmes, Legates and Walls. Councilman Holpp was absent.

100MW CONSTRUCTION RE-ESTIMATE

Mr. Richard Popham, of the firm of Laramore, Douglass & Popham, was present with a re-estimation of the cost of construction of the new 100MW unit for McKee Run Station. Mr. Neylan explained to the Council a surplus sheet and financial summary of cost re-estimations that had been worked up to clarify the escalation in cost. This was presented to Council prior to the offer of Drexel Harriman Ripley on the first stage financing of the Revenue Bonds. The overall increase will be approximately $1,500,000 over the original estimate of April, 1970. A letter was then read from Laramore, Douglass & Popham substantiating the facts and figures that Mr. Neylan had just related to Council. The main reason for the increase is due to the unstable labor market of today and the uncertainty of the labor market of the future, on which all of the construction contracts are based. In the opinion of Mr. Popham, the City is in a position that it can afford the increased financing of the construction as now estimated.

ELECTRIC REVENUE BONDS

The meeting was called for the purpose of considering a proposal for the purchase of $12,070,000 Electric Revenue Bonds (Series 1970) to be issued under the provisions of a Resolution authorizing and securing Electric Revenue Bonds of the City, adopted July 26, 1965 and an additional resolution adopted on August 31, 1970 authorizing the issuance of the Series 1970 bonds.

Present at the meeting was Henry Kahkonen, representing Drexel Harriman Ripley Incorporated, which firm is offering a proposal for the purchase of $12,070,000 City of Dover Electric Revenue Bonds (Series 1970).

Mr. Kahkonen, for Drexel Harriman Ripley Incorporated submitted a proposal to purchase the $12,070,000 Electric Revenue Bonds (Series 1970) at a price of $11,828,600, with interest rate of 6.90% for bonds maturing from 1974 to 1988, inclusive, 6.95% for bonds maturing in 1989, 7% for bonds maturing in 1990 and 1991, 7.05% for bonds maturing in 1992 and 1993, 7.10% for bonds maturing in 1994 and 1995, 7.20% for bonds maturing in 1996 and 1997 and 7 1/4% for bonds maturing in 1998 and 2000, inclusive. A check in the amount of $120,700 payable to the City of Dover was delivered with the offer. The proposal was presented in the form of a Purchase Contract between the City and Drexel Harriman Ripley Incorporated. The bond issue will be dated August 15, 1970, and accrued interest will be paid the City from the date of the bonds to the date of the Closing.

REDEMPTION PROVISIONS

Council considered redemption provisions of the Electric Revenue Bonds contained the following Resolution. On motion of Mr. Coyle, seconded by Mr. Hastings, Council by a roll call vote of 7 ‘yes’ and 1 ‘absent’, Mr. Holpp, adopted the following resolution.

A RESOLUTION FIXING THE TIMES AND PRICES AT WHICH THE $12,070,000 ELECTRIC REVENUE BONDS (SERIES 1970) ARE TO BE REDEEMABLE.

BE IT RESOLVED by the Council of the City of Dover, Delaware:

1. That the Electric Revenue Bonds (Series 1970) issued under the provisions of Section 209 of the Resolution authorizing and securing Electric Revenue Bonds of the City, adopted on July 26, 1965, at the time outstanding which mature after February 15, 1981, may be redeemed prior to their respective maturities, either in whole, at the option of the City, on any date not earlier than February 15, 1981, from any moneys that may be made available for such purpose, or in part, in the inverse order of their maturities, on any interest payment date not earlier than February 15, 1976, from moneys in the City of Dover Electric Revenue Bonds Interest and Sinking Fund, at the principal amount of the bonds to be redeemed, together with the interest accrued thereon to the date fixed for redemption plus the following premiums on any such redemption of said bonds:

            (a) in the case of a redemption in whole, 3% of such principal amount if redeemed on or prior to February 14, 1984, 2% if redeemed thereafter and on or prior to February 14, 1987, 1% if redeemed thereafter and on or prior to February 14, 1990, and without premium if redeemed thereafter, and

            (b) in the case of redemption in part, 2% of such principal amount if redeemed on or prior to February 15, 1981, 1% of redeemed thereafter and on or prior to February 15, 1986, and without premium if redeemed thereafter.

2. That this resolution shall take effect immediately upon its passage and approval of the Mayor.

ADOPTED OCTOBER 20, 1970

PURCHASE CONTRACT

Council considered the following resolution approving a purchase contract between the City and Drexel Harriman Ripley Incorporated. On motion of Mr. Coyle, seconded by Mr. Walls, Council by a roll call vote of 7 ‘yes’ and 1 ‘absent’, Mr. Holpp, adopted the following resolution.

A RESOLUTION AWARDING $12,070,000 ELECTRIC REVENUE BONDS (SERIES 1970) OF THE CITY OF DOVER, DESIGNATING THE NEW YORK PAYING AGENT AND DIRECTING THE AUTHENTICATION AND DELIVERY OF SAID BONDS.

WHEREAS, the Council of the City of Dover (hereinafter sometimes called the “City Council”) has received from Drexel Harriman Ripley Incorporated a proposal for the purchase of $12,070,000 Electric Revenue Bonds (Series 1970) of the City of Dover, dated as of the 15^th day of August, 1970, and authorized by the City Council by the Resolution adopted on August 31, 1970, said proposal being that presented at this meeting in the form of a Purchase Contract between the City and said Drexel Harriman Ripley Incorporated; and

WHEREAS, the City Council has determined that it is for the best interests of the City to accept said proposal,

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

1. The proposal in the form of the Purchase Contract mentioned above is hereby accepted and the $12,070,000 Electric Revenue Bonds (Series 1970) of the City of Dover, bearing interest at the rates set forth in said Purchase Contract as follows:

Year of Maturity

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

Principal Amount

$ 5,000

    5,000

    5,000

    5,000

    5,000

    5,000

    5,000

    5,000

    5,000

    5,000

    5,000

    5,000

    5,000

    5,000

Interest Rate

6.90%

6.90%

6.90%

6.90%

6.90%

6.90%

6.90%

6.90%

6.90%

6.90%

6.90%

6.90%

6.90%

6.90%

Year of Maturity

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Principal Amount

$ 460,000

    635,000

    685,000

    735,000

    790,000

    850,000

    915,000

    980,000

 1,055,000

 1,135,000

 1,220,000

 1,310,000

 1,230,000

Interest Rate

6.90%

6.95%

7.00%

7.00%

7.05%

7.05%

7.10%

7.10%

7.20%

7.20%

7.25%

7.25%

7.25%

are hereby awarded to Drexel Harriman Ripley Incorporated, at the purchase price of $11,828,600 and accrued interest from August 15, 1970 to the date of delivery of said bonds and upon the terms and conditions set forth in said Purchase Contract.

2. The Mayor is hereby authorized to execute the Purchase Contract for and on behalf of the City.

3. Morgan Guaranty Trust Company of New York is hereby designated as the New York paying agent for said bonds for the purposes of the Resolution adopted on July 26, 1965.

4. Said bonds, upon their execution in the form and manner set forth int eh Resolution adopted on July 26, 1965 and referred to in said Purchase Contract, shall be deposited with the Trustee under said Resolution for authentication, and said Trustee is hereby authorized and directed to authenticate and deliver said bonds to or upon the order of said Drexel Harriman Ripley Incorporated upon the payment of said purchase price.

5. The officers and agents of the City and the officer and agents of the Trustee under said Resolution are hereby authorized and directed to do all acts and things necessary to carry into effect the provisions of this Resolution.

6. That this Resolution shall take effect immediately upon its passage and approval by the Mayor.

ADOPTED OCTOBER 20, 1970

OFFICIAL STATEMENT

Council considered the following resolution approving the official statement. On motion of Mr. Walls, seconded by Mr. Coyle, Council by a roll call vote of 7 ‘yes’ and 1 ‘absent’, Mr. Holpp, adopted the following resolution.

A RESOLUTION APPROVING THE OFFICIAL STATEMENT RELATING TO $12,070,000 ELECTRIC REVENUE BONDS (SERIES 1970).

BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DOVER, DELAWARE:

1. That the Official Statement dated October 20, 1970, in connection with the sale of $12,070,000 Electric Revenue Bonds (Series 1970) of The City of Dover, dated August 15, 1970, is hereby approved in the form presented at this meeting, with such minor changes, insertions and omissions as may be approved by the Mayor, and the Mayor is hereby authorized to sign said Official Statement on behalf of the City for use by the purchaser in connection with the offering and sale of said bonds, and his signature thereto shall be conclusive evidence of his approval of all such changes, insertions and omissions.

2. That this Resolution shall take effect immediately upon its passage and approval by the Mayor.

ADOPTED OCTOBER 20, 1970

COUNCIL ADJOURNED AT 8:50 P.M.

Jay R. Dougherty

City Clerk

All ordinances, resolutions and orders adopted by Council at its meeting of October 20, 1970 are hereby approved.

                                                                                                                                                            

OCTOBER 21, 1970                                                                           Crawford J. Carroll Mayor