Delaware General Assembly

CHAPTER 578

FORMERLY SENATE BILL NO. 757

AS AMENDED BY SENATE AMENDMENTS

NO. 2,3,5,6,9,11,12,14,15,16, and 17

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.

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 $7,767,400 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, Section 8, Section 9 and Section I 0 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, Section 8 and Section 10 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 Section 15 of this Act.

Section 3. None of the monies appropriated by this Act shall be expended before July I , 1972. None of the monies appropriated by this Act shall be expended after June 30, 1975, on any of the individual projects authorized in the 1973 Annual Capital Projects Schedule unless such projects have progressed into any or all of the following phases prior to July I , 1975: Initial Engineering, Planning, Procurement, Construction.

Section 4. The said sum of $7,767,400 or so much thereof as may be necessary for carrying out the purposes of this Act, shall be borrowed by the issuance of bonds and bond anticipation notes

upon the full faith and credit of the State of Delaware. Such bonds and notes shall be issued in accordance with the provisions of Chapter 74, Title 29, Delaware Code, and Chapter 75, Title 29, Delaware Code, where applicable. For purposes of identification, the bonds issued pursuant to this Authorization Act may be known, styled or referred to as "Capital Improvement Bonds of 1973."

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 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 notes shall be signed by the Secretary of State by and with the approval of the 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 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 in the following amounts:

(a) Department of Administrative Services

Wilmington State Office Building $10,700,000

Other 1,674,000 $12,374,000

(b) Budget Office

School Districts 642,485

Other State Agencies 857,515 1,500,000

(c) Department of Health and Social Services 5,255,400

(d) Department of Highway and Transportation 23,730,000

(e) National Guard 10,000

(f) Department of Natural Resources and

Environmental Control 8,750,000

(g) State Board of Education 18,541,000

(h) Department of Public Safety 26,000

() Department of State 690,000

(a) Delaware State College 280,000

(b) Delaware Technical and Community College 3,971,000

(1) University of Delaware 4,640,000

Grand Total $79,767,400

Section 8. The sum of $23,730,000 appropriated by Section 7 (d) of this Act to the Department of Highways and Transportation for Highway construction and related construction purposes, shall be allocated by the Department of Highways and Transportation to the following Capital Improvement Programs:

(a) Corridor Program $10,000,000

(b) Non-Corridor Route Improvements Program 3,500,000

(c) Highway and Railway Crossing Safety Improvement 250,000

(d) TOPICS Program 250,000

(e) Intersection Improvements Program 200,000

(f) Traffic Signal Improvements Program 250,000

(g) Bridge Rehabilitation, Repair and Replacement

Program 1,000,000

(h) Miscellaneous Small Projects 200,000

() Dirt Road Program 500,000

(a) Resurfacing and Rehabilitation of Roads 1,300,000

(b) Suburban Streets Improvement Program 250,000

(1) Advance Planning and Engineering Program 250,000

(m) Suburban Drainage Program 500,000

(n) Seawall and Drainage in Sussex County 180,000

(o) Engineering and Contingencies 1,300,000

(p) Advance Right-of-Way Acquisition 3,000,000

Section 9. The monies allocated in Section 8 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 8 of this Act and termed (o) Engineering and Contingencies shall be accounted for by project. No monies allocated in Section 8 shall be used to finance the rehabilitation and resurfacing of roads by the "Tar-and-chip" method.

Section 10. The sum of $18,541,000 appropriated by Section 7(g) of this Act to the State Board of Education for school construction purposes, or so much thereof as shall be necessary to carry out the purposes of this Act, shall be allocated by the State Board of Education to the following named school districts according to the following tabulation of maximum totals and shares, or in the proportions represented by said maximum totals and shares:

Section 11. The sums of money appropriated and allocated for school construction purposes pursuant to Section 7 and Section 10 of this Act shall be expended in accordance with the provisions of this Act, and Chapter 75, Title 29, Delaware Code.

Section 12. No money appropriated and allocated by this Act for school construction purposes pursuant to Section 10 of this Act shall 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 educational 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 10 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 10 hereof as shall be necessary to provide for the customary supervision (construction inspection services), but in no event shall such allocation exceed one percent of such total cost.

(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. Chapter 69, Title 29, Delaware Code.

Section 14. 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 appropriated against future capital improvement bond requirements. Any funds that shall accrue to any, school district in this State from the Treasury of the United States for building purposes shall be deposited in the State Treasury and shall be allocated by the State Board of Education to the School district for which the funds are appropriated. The said funds shall be in addition to any other local share and/or State share.

Section 15. (a) The sum of $500,000 appropriated by Section 10 (j) 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 purposes of this Act,

shall be paid by the State Board of Education to the local districts in the following amounts:

(b) 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, electrical, and plumbing or water systems and facilities. The State Board shall in any case, pay only 60 percent of the total costs of such minor capital improvements.

(c) 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 (b) of this section, shall decide as to the right of payment to the local school district and show the estimated cost of each item.

(d) 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 (b) of this section;

() provide necessary help to the school district for letting of bids on the 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

(ii) 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.

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.

(f) Any school district may levy and collect a tax to pay their 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.

(g) Any school district, as an alternate to the levy and collection of a tax to pay its 40 percent share as provided in (f) above, may authorize the issuance of bonds to pay its 40 percent share of the cost of the minor capital improvements authorized by this section, pursuant to Chapter 21, Title 14, Delaware Code. In the event that such share is to be raised by the alternate method herein permitted, the provisions of Section 7507, Chapter 75, Title 29, Delaware Code, shall apply.

(h) The provisions of Chapter 75, Title 29, Delaware Code, shall not apply to the minor capital improvements authorized by this section except for the applicability of Section 7507 of said chapter as provided in (g) above.

Section 16. The sum of $733,000 appropriated by Section 10(j) 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, 1971.

(b) The allotment for each school district as computed in (a) shall be expended only for the purpose of maintenance of buildings and such integral parts as the heating plant, plumbing and electrical system; 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.

(e) 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.

(d) 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 17. No funds appropriated by this Act to the Department of Natural Resources and Environmental Control for land acquisition can be expended without prior approval by the State Planning Office with respect to compliance with the Delaware Development Plan.

Section 18. 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 1973 Annual Capital Projects Schedule as prepared by the State Planning Office and approved by the Governor, and as further amended hereby.

Section 19. No money appropriated and allocated by this Act in excess of $2,000 shall be paid for materials, supplies, services or construction by any State department, agency, or commission to any person, corporation, or other business association until such department, agency, or commission shall have obtained assurance in writing that such persons, corporation, or other business association has paid all taxes due the Department of Finance, and has, to the best knowledge of the Department of Finance, obtained all necessary licenses and permits and has complied with all rules and regulations of said Department.

Section 20. The $1,500,000 appropriated by this Act to the State Budget Office shall be disbursed in accordance with regulations established by the Budget Director, who shall in no event approve expenditures of such funds for any project which in his judgment will have a life expectancy of less than ten (10) years.

Of the $1,500,000 appropriated by this Act to the Budget Office, $642,485 will be allocated to school districts on the basis of $95 per Division II unit as of September 30, 1971, computed as follows:

Section 21. The Budget Director shall examine each project for which monies appropriated in this At are earmarked and shall estimate to the best of his ability^- the useful life expectancy of each. No monies appropriated and allocated in this Act shall be used for any construction or maintenance which is deemed by the Budget Director to have a useful life expectancy of less than ten (10) years.

Section 25. The local share of $120,000 herein authorized under Section 10(f) for the Carrie Downie Elementary School heating system in the New Castle-Gunning Bedford School District may be provided from the Local School District's Debt Service account by transfer therefrom to the project herein contemplated.

Section 26. No bonds or notes shall be issued or monies

borrowed on behalf of this State, pursuant to this Act, after June 30, 1978, except as provided in Chapter 75, Title 29, Delaware Code.

Section 27. 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 28. $20,400.00 of the amount appropriated by Section 7 (c) of this Act to the Department of Health and Social Services shall be used for the purpose of Grounds Improvement on the campus of the Delaware Hospital for the Mentally Retarded at Stockley.

Section 29. This Act may be known, styled or referred to as the "Annual Capital Improvements Act of 1973".

Approved July 24, 1972.