Lakewood Board of Education meeting tonight 6:30 PM Wednesday October 18, 2017 at 855 Somerset Avenue Lakewood, NJ.
On the Agenda bid up to $500,000 to purchase 7 school buses for the township.
See full Agenda HERE
Resolution for bus purchase below:
RESOLUTION OF THE BOARD OF EDUCATION OF THE TOWNSHIP OF LAKEWOOD IN THE
COUNTY OF OCEAN, NEW JERSEY PROVIDING FOR THE PURCHASE OF SEVEN BUSES THROUGH A LEASE PURCHASE TRANSACTION, AWARDING THE LEASE PURCHASE FINANCING AND AUTHORIZING EXECUTION OF A LEASE PURCHASE AGREEMENT AND OTHER RELATED AGREEMENTS AND ACTIONS NECESSARY TO ACCOMPLISH THE TRANSACTION
WHEREAS, The Board of Education of the Township of Lakewood in the County of Ocean, New Jersey (the "Board") has determined to finance the acquisition of two (2) 54 passenger
buses and five (5) 24 passenger buses, including the financing costs and any additional incidental costs (the "Equipment") through a lease purchase transaction; and WHEREAS, the Board has selected Hunterdon County Educational Services Commission to
serve as financial advisor (the “Financial Advisor”) and McManimon, Scotland & Baumann, LLC to serve as special counsel (the "Special Counsel") for the transaction contemplated herein; and
WHEREAS, the Board has followed the procedures required by N.J.S.A. 18A:20-4.2(f) and N.J.S.A. 18A:18A-1 et seq., and the regulations promulgated thereunder; and
WHEREAS, the Board hereby authorizes and ratifies the solicitation of bids for the financing of the Equipment pursuant to a lease purchase agreement for a principal amount not to;exceed $500,000 and hereby ratifies the publication of the notice of request for the receipt of bids; and
WHEREAS, of the bids submitted, (TBD)______________________ submitted the lowest response, and the Board wants to award the lease purchase financing to such company or its assigns in accordance with the recommendation of the Financial Advisor, its response
and the request for bids; and
WHEREAS, the Board now intends to enter into an equipment lease purchase agreement
with (TBD) ____________________ (the "Lease") on a date as agreed to by the Business
Administrator/Board Secretary;
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF EDUCATION OF TOWNSHIP OF
LAKEWOOD IN THE COUNTY OF OCEAN, NEW JERSEY AS FOLLOWS:
BOE Agenda: October 18, 2017 9
Section 1. The Board hereby approves the bid submitted by (TBD)
___________________ (referred to hereinafter as the “Purchaser” or sometimes the
“Lessor”) and to enter into the Lease at an annual interest rate of ____% for a term of not to exceed five years in the principal amount of not to exceed $500,000, representing the
principal portion of the rent payments under the Lease. This award is being made in accordance with the request for bids and the bid submitted by the Purchaser to the
Business Administrator/Board Secretary and on file with his office. The Purchaser’s interest rate will be held fixed for a period of 30 days from the date of the bid. If the closing does not occur within 30 days of the date of the bid, the interest rate will be calculated in accordance with the index rate set forth in the request for bids.
Section 2. The Board hereby authorizes the execution and the delivery of and the
performance by the Board of its obligations under the Lease and other related financing
agreements and documents, which shall be in the form approved by Special Counsel. The Board hereby authorizes and directs the Board President or the Business
Administrator/Board Secretary to execute such documents on behalf of the Board, and the signature of such official shall be conclusive proof of such approval.
Section 3. The payments of rent or other monies due under the Lease shall be made
only from the General Fund of the Board. Neither the Board nor any agency, department or
political subdivision thereof shall be obligated to pay any sum to the Lessor under the Lease
from any taxing source for the payment of any sums due under the Lease. The obligations of the Board under the Lease shall not constitute indebtedness of the Board or of the constituent municipalities or of any department, agency or political subdivision thereof.
The Lease sets forth the term of the lease purchase acquisition by the Board for the
acquisition of the Equipment, the rental payments to be paid by the Board in respect
thereof and the dates on which rents shall be due and payable.
Section 4. The proceeds of the sale of the Lease shall be applied to (i) pay costs to
acquire and to install the Equipment, and (ii) pay the costs of entering into the Lease.
Section 5. The Business Administrator/Board Secretary is authorized to direct the
investment of funds under an escrow deposit agreement (the “Escrow Agreement”)
between the Board and (TBD) ___________________, the escrow agent, consistent with
the provisions of New Jersey law and the Escrow Agreement and is authorized to enter into
such agreement, to execute such documents on behalf of the Board as may be necessary
therefor and to pay any associated costs with the Escrow Agreement.
Section 6. The Board hereby covenants that it will comply with any conditions
subsequent imposed by the Internal Revenue Code of 1986, as amended (the "Code") in
order to preserve the exemption from taxation of the interest portion of the rental
payments under the Lease, including, if applicable, the requirement to rebate all net
investment earnings on the gross proceeds above the yield on the Lease. The Board hereby
declares its intent to issue the lease in the expected maximum principal amount of the
BOE Agenda: October 18, 2017 10
Lease set forth herein and to use the proceeds of the Lease to pay or reimburse
expenditures for the costs of the purpose for which the Lease is authorized herein. This
resolution is a declaration of intent within the meaning and for the purposes of Treasury
Regulations Section 1.150-2 or any successor provisions of federal income tax law. The
Board delegates to the Business Administrator/Board Secretary the ability to designate the
Lease as a "qualified tax-exempt obligation" for the purposes of Section 265(b)(3)(B)(ii) of
the Code, if applicable.
Section 7. The Business Administrator/Board Secretary and/or the Board President
and other appropriate representatives of the Board are authorized to take any and all
actions necessary to implement the transaction and the agreements authorized herein, and any such actions taken prior to adoption of this resolution is hereby ratified and approved. Section 8. This resolution shall take effect immediately
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