Delaware General Assembly

CHAPTER 408

FORMERLY

SENATE BILL NO. 710

AN ACT AUTHORIZING THE STATE OF DELAWARE TO BORROW MONEY TO BE USED FOR CAPITAL IMPROVEMENTS AND EXPENDITURES IN THE NATURE OF CAPITAL INVESTMENTS AND TO ISSUE BONDS AND NOTES THEREFOR AND APPROPRIATING THE MONIES TO VARIOUS AGENCIES OF THE STATE AND APPROPRIATING THE MONIES TO THE STATE BOARD OF EDUCATION ON BEHALF OF LOCAL SCHOOL DISTRICTS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (three-fourths of all the members elected to each branch thereof concurring therein);

Section 1. There is appropriated to the agencies of this State set forth in Section 7 hereof the sum of $31,764,500 or so much thereof as may be necessary for carrying out the purposes of this Act, which shall be used for the purposes set forth in Section 7 of this Act.

Section 2. The funds appropriated by this Act may be used for the costs incidental to the uses set forth in Section 7 of this Act, and are to include but not be limited to design, planning, land acquisition, acquisition of utility and service areas, construction, repairing, remodeling, equipping, landscaping, and inspection costs, but are not to be used for ordinary or normal maintenance expense

of highways, bridges or other properties except for that maintenance as outlined in Sections 14 and 15 of this Act.

Section 3. None of the monies appropriated by this Act shall be expended after June 30, 1981, on any of the individual projects authorized in the 1979 Annual Capital Projects Schedule unless such projects have progressed into any or all of the following phases prior to July 1, 1981; Initial Engineering, Planning, Procurement, Construction.

Section 4. (a) In order to provide funds for appropriation pursuant to this Act, $23,439,127 shall be borrowed by the issuance of bonds or bond anticipation notes to which the State shall pledge its faith and credit. The bonds authorized to be issued by this subsection shall mature not later than twenty (20) years from their date of issuance and shall be issued for projects and in amounts set forth in the fiscal year 1979 Capital Budget Summary and the Annual Capital Projects Schedule included herein.

(b) In order to provide funds for appropriation pursuant to this Act, $8,325,373 shall be borrowed by the issuance of

bonds or bond anticipation notes to which the State shall pledge

its faith and credit. The bonds authorized to be issued by this subsection shall mature not later than ten (10) years

from their date of issuance and shall be issued for projects and in amounts set forth in the fiscal year 1979 Capital Budget and the Annual Capital Projects Schedule included herein.

Section 5. There is appropriated from the General Fund of the State such sums as may be necessary for the expenses incident to the issuance of the bonds and notes herein authorized, and such further sums as may be necessary to pay any interest which becomes due on such bonds and notes during the current fiscal year, and such further sums as may be necessary for the repayment of the principal of any of the said bonds and notes which become due during the current fiscal year. Vouchers for the payment of the expenses incident to the issuance of bonds and notes and for the interest and repayment of said bonds and notes shall be signed by the State Treasurer, by and with the approval of the Bond Issuing Officers. Any monies received from the premium and accrued interest on the sale of said bonds shall be deposited to the credit of the General Fund.

Section 6. The Budget Appropriation Bill which shall be enacted and approved by the General Assembly for the fiscal year next following the effective date of this Act and for each subsequent fiscal year or biennium, shall contain under the Debt Service item provisions for the payment of interest and principal maturities of the bonds (or notes which are not to be funded by the issuance of bonds) issued under the authority of this Act, and such of the revenues of The

State of Delaware as are not prohibited by the constitutional provisions or committed by preceding statutes for other purposes, are hereby pledged for the redemption and cancellation of said bonds and payment of interest thereon.

Section 7. The monies appropriated herein, or so much thereof as is necessary to carry out the purposes of this Act, shall be expended by the following State agencies or their successors and the State Board of Education shall allocate to the designated school districts according to the following tabulation of maximum totals and shares or in the proportions represented by said maximum totals and shares:

Department or Agency State Funds

(a) Department of State

(b) Department of Transportation

(1) Corridor Program Projects $7,881,000

(2) Non-Corridor Program Pro-

jects 1,875,127

(3) Paving & Rehabilitation

Program: Primary & Secondary

Roads 1,660,000 $ 65,000

Department or Agency State Funds

Section 8. Any funds borrowed pursuant to this Act and remaining unexpended after the completion of the programs authorized by this Act and any funds borrowed pursuant to this Act and remaining unexpended because a project authorized by this Act is not timely undertaken, shall be deposited in a special account and applied, at the discretion of the State Treasurer with the approval of the Bond Issuing Officers, against future capital improvement bond and note requirements, all acts to the contrary notwithstanding.

Section 9. No bonds or notes shall be issued or monies borrowed on behalf of this State, pursuant to this Act, after June 30, 1984, except as provided in Chapter 75, Title 29, Delaware Code.

Section 10. All monies appropriated by this Act shall be considered to be in compliance with and shall be expended in accordance with the intent of the 1979 Annual Capital Projects Schedule.

Section 11. (a) The monies allocated in Section 7(b) of this Act shall be expended for highway construction or related purposes, but they shall not be used for office supplies or for office equipment and furnishings. The monies authorized in Section 7(b) (8) of

this Act and termed Engineering and Contingencies shall be accounted for by project.

(b) In the event that the Secretary of the Department of Transportation determines that an individual project listed in the Project Schedule requires additional funds for completion or will have a funding balance remaining upon completion, in excess of the amount listed for such project, the Secretary of the Department of Transportation may, with the approval of the Director of the Office of Management, Budget and Planning, transfer funds from one individual project listed herein to another such project within the same program.

Section 12. The sums of money appropriated and allocated for school construction purposes pursuant to Section 7(g) of this Act shall not be expended for educational supplies of an expendable nature which are consumed or materially changed as they are used; provided, however, that nothing herein contained shall preclude the purchase of all education supplies necessary for the initial operation of schools so built, altered or added to in accordance with the provisions of the School Construction Capital Improvements Act, being, Chapter 75, Title 29, of the Delaware Code.

Section 13. (a) In compliance with Section 7526 of Title 29, Delaware Code, the State Board of Education and the local school districts shall allocate such portions of the total appropriation for the total cost of any school construction authorized by Section 7(g) hereof as shall be necessary to provide for the customary audit function, but in no event shall such allocation exceed one-half percent of such total cost. The State Auditor of Accounts shall be responsible for arranging the audit function in accordance with Section 2906 and Section 2907 of Title 29, Delaware Code.

(b) In compliance with Section 7526 of Title 29, Delaware Code, the State Board of Education and the local school districts shall allocate such portions of the total appropriation for the total cost of any school construction authorized by Section 7(g) hereof as shall be necessary to provide for the customary supervision (construction inspection services). The limitation of one percent prescribed in Section 7526 of Title 29, Delaware Code, for construction inspection services is hereby set aside and such allocation by the State Board of Education and the local school districts shall not exceed the following percentages:

(c) In contracting for the supervision (construction inspection services as prescribed in Section 13(b) hereinabove, the State Board of Education shall give first preference to an experienced Delaware organization able to, and offering to provide quality service on a "non-profit, at cost" basis, and in so contracting it shall not be subject to the bidding laws as prescribed by Chapter 69, Title 29, Delaware Code. If no such organization is able to or is willing to offer to perform such specialized service on such "non-profit, at cost" basis, then the State Board of Education may contract for such services with profit making organizations on a bid basis as prescribed by Chapter 69, Title 29, Delaware Code.

Section 14. (a) The sum of $1,285,373 appropriated by Section 7(g) of this Act to the State Board of Education for minor capital improvements to school buildings, or so much thereof as shall be necessary to carry out the purpose of this Act, shall be paid by the State Board of Education to the local districts in the following amounts:

(b) The State Board of Education shall in no case pay more toward the completion of the minor capital improvements for each school district as herein contemplated, than the total amounts designated as "Maximum State Share", nor less than sixty percent rounded to the nearest one hundred dollars of the final actual total costs when such total costs are less than the "Maximum Total Cost" herein designated. As is customary in the case of 100 percent State supported schools, 100 percent of the funds herein contemplated for such schools shall be wholly provided by the State.

(c) The State Board shall establish criteria for the types of minor capital improvements which it will approve under this Section. The State Board shall pay local districts only for the actual expenses of repairs and replacements of a capital nature which shall include but not be limited to the rebuilding or major repair of roofs, floors, heating systems, painting, electrical, and plumbing or water systems and facilities. The State Board shall in any case, pay only sixty percent of the total costs of such minor capital improvements.

(d) Before any minor capital improvements or repairs of a capital nature authorized by this Section are undertaken by any school district, the school district shall send a request to the State Board of Education which request shall itemize the improvements or repairs needed and show the estimated cost of each item. The State Board, using the criteria established pursuant to subsection (c) of this Section, shall decide as to the right of payment to the local school district and show the estimated cost of each item.

(e) In order to determine the right of payment to the school district under this Section, the State Board, or its designated representative, shall:

(i) Inspect the building or buildings to determine that the minor capital improvements requested by the school district are needed and are in accordance with the criteria established pursuant to subsection (c) of this Section;

(i) Provide necessary help to the school district for letting of bids on repairs or replacements meeting the aforesaid criteria;

(i) Inspect the improvements upon completion to determine that all specifications have been met and that the work and materials used are of acceptable quality; and

(i) Pay the State's share of the cost of the improvements or repairs made by the school district in accordance with the provisions of this Section after the improvements or repairs are accepted as meeting all specifications as to workmanship and materials and when the school district's share has been deposited with the State Treasurer in accordance with the provisions of this Section.

(f) The State Board of Education shall, if and when the criteria established in this Section are met, pay the school district for the school building improvement, except that the amount paid to each school district shall not be in excess of 60 percent of the total cost.

(g) Any school district may levy and collect a tax to pay its 40 percent share of the cost of the minor capital improvements authorized by this Section. Such taxes shall be collected by local taxation within the school district according to the provisions set forth in Chapter 19, Title 14 of the Delaware Code.

(h) The provisions of Chapter 75, Title 29, Delaware Code shall not apply to the minor capital improvements authorized by this Section.

Section 15. The sum of $700,000 appropriated by Section 7(g)

(2) of this Act to the State Board of Education for "School Building Maintenance", shall be allocated to the school districts in accordance with the following provisions:

(a) The maximum allocation to any district shall be the sum of the allotments for each school building in the district based upon the following formula: $9 for each year since the date of pupil occupancy of the building up to a maximum of 30 such years multiplied by the full number of units of 25 pupils in the building on a full-time basis as of September 30, 1977.

(b) The allotment for each school district as computed in (a) of this Section shall be expended only for the purpose of maintenance of buildings and such integral parts as the heating plant, plumbing and electrical system, or painting. It shall not be used for the purchase of routine janitorial supplies, upkeep of grounds nor the repair of any equipment not a basic part of the building.

(c) Before the State Board of Education shall make any allotment pursuant to this Section, it shall require that the school district submit a plan of the maintenance and the estimated cost thereof.

(c) The State Board of Education shall establish such rules and regulations as it deems necessary to assure that the purpose of this appropriation is carried out.

Section 16. All State departments and agencies shall submit all architectural, structural, electrical, and mechanical plans, specifications and cost estimates during the design and development phases and prior to bid to the State Architect. The State Architect shall

be responsible for reviewing and approving these plans prior to bid advertisement, and no construction contracts (except Highway construction contracts and school district minor capital improvements) shall be executed without the prior approval of the State Architect.

Section 17. Each State agency and institution of higher learning receiving funds by this Act, must on a semi-annual basis effective upon the enactment of this Act, report to the Office of Management, Budget and Planning the status and anticipated cash flow for each capital improvement project for which it has received funds, either in this Bond Act or in any previous Bond Act, and for which the project is not complete as of the effective date of this Act.

Section 18. (a) All new construction and/or rehabilitation of existing structures shall comply with flood plain management requirements of local communities. If any project is located in a nonparticipating local community, then the State shall comply with the criteria set forth in §§1910.3, 1910.4 and 1910.5 of the National Flood Insurance Act of 1968, as amended.

(b) All projects funded by this Act shall be built to standards that are not less stringent than American Society of Heating, Refrigerating, and Air Conditioning Engineering, Inc., Standard 90-75.

Section 19. No bonds or notes shall be issued or sold, or monies borrowed on behalf of this State, pursuant to this Act, without the full guarantee to the buyer that The State of Delaware is an equal opportunity employer.

Section 20. This Act may be known, styled or referred to as the "Annual Capital Improvements Act of 1979".

Approved July 1, 1978.