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Home My Public Portal AboutOrd. 12-14@ binana No. 17 -14 []f the �Vry g 4 lcllf garterel, �q_ I Councilman Presents the following Ordinance Seconded by Councilman A LOAN ORDINANCE OF THE BOROUGH OF CARTERET, IN THE COUNTY OF MIDDLESEX, STATE OF NEW JERSEY APPROVING AND AUTHORIZING THE ENTERING INTO, EXECUTION AND DELIVERY OF A LOAN AND SECURITY AGREEMENT WITH THE MIDDLESEX COUNTY IMPROVEMENT AUTHORITY FOR THE UNDERTAKING OF VARIOUS 2012 CAPITAL IMPROVEMENTS AND THE ACQUISITION AND INSTALLATION, AS APPLICABLE, OF VARIOUS EQUIPMENT WITH AN ESTIMATED COST OF $50,000, THE COST OF SUCH IMPROVEMENTS AND EQUIPMENT TO BE FINANCED THROUGH THE ISSUANCE OF COUNTY - GUARANTEED CAPITAL EQUIPMENT AND IMPROVEMENT REVENUE BONDS, SERIES 2012 OF THE MIDDLESEX COUNTY IMPROVEMENT AUTHORITY WHEREAS, the Middlesex County Improvement Authority (the "Authority) is authorized to issue its bonds pursuant to the provisions of the County Improvement Authorities Law, chapter 183 of the Laws of New Jersey of 1960, as amended and supplemented (N.J.S.A. 40:37A -44 et sec.) (the "County Improvement Authorities Law"), and other applicable provisions of law; and WHEREAS, the Authority has determined to issue its revenue bonds for the purpose of financing the various capital improvements to be undertaken by and the acquisition, installation and, as applicable, subsequent leasing of certain capital equipment, including but not limited to police and passenger vehicles, to various governmental entities within the County of Middlesex, State of New Jersey (the "County), including the County and the Authority (the "2012 Program "); and WHEREAS, the Borough of Carteret, in the County of Middlesex, State of New Jersey (the "Municipality") has determined to participate in the 2012 Program and to finance various capital improvements and acquire and install certain capital equipment through the Authority; and WHEREAS, there has been prepared and submitted to the Municipality the form of the Loan and Security Agreement (the "Loan Agreement "), to be entered into by and between the Authority and the Municipality, which Loan Agreement has been approved by the County and which is attached hereto as Exhibit A , providing for the financing of various capital improvements and the acquisition and installation of certain capital equipment through the Authority, which improvements and items of equipment are described in Exhibit B attached hereto and incorporated by this reference herein. All terms used herein and not otherwise defined shall have the same meanings ascribed to such terms under the Loan Agreement. NOW THEREFORE, BE IT ORDAINED AND ENACTED BY THE GOVERNING BODY OF THE BOROUGH OF CARTERET, IN THE COUNTY OF MIDDLESEX, STATE OF NEW JERSEY (not less than two- thirds of all members thereof affirmatively concurring), AS FOLLOWS: Section 1. (a) The various capital improvements and the acquisition and installation, as applicable, of certain items of equipment by the Municipality described in Exhibit B attached to this loan ordinance and by this reference made a part hereof are hereby authorized as general capital improvements or purposes to be undertaken by the Municipality. For financing such improvements, purposes or loan, there is hereby appropriated the not to exceed sum of $60,000. (b) For the financing of the general capital improvements, purposes or loan and to provide monies to fund the not to exceed $60,000 appropriation, a loan from the Authority to the P unicipality is hereby authorized in a not to exceed amount of $50,000 pursuant to the County Improvement Authorities Law and the Local Bond Law, N.J.S.A. 40A:2 -1 at seq, as amended and supplemented (the "Local Bond Law'). (c) The general capital improvements hereby authorized and the purposes for which the above - described loan is authorized are the various capital improvements to be undertaken and the acquisition and installation, as applicable, of certain items of equipment by the Municipality described in Exhibit 8 attached hereto. No. - 12 -14 PAG (d) The estimated maximum amount of the loan for the various capital improvements and the acquisition and installation, as applicable, of certain items of equipment by the Municipality 'described in Exhibit B attached hereto is $60,000. (e) The estimated cost of said general capital improvements or purposes is $50,000, with a not to exceed amount of $60,000, which not to exceed amount includes all costs of issuance and items of expense listed In and permitted under section 20 of the Local Bond Law. Section 2. Pursuant to the County Improvement Authorities Law and N.J.S.A. 40:23- 1 et se q., the Municipality is hereby authorized and directed to enter into and perform the Loan Agreement, which Loan Agreement provides for various capital improvements to be undertaken and the acquisitior; and installation, as applicable, of certain items of equipment by the Municipality to be financed with the proceeds of County- Guaranteed Capital Equipment and Improvement Revenue (Bonds, Series 2012 (the "Bonds ") to be issued by the Authority under a resolution to be adopted by the Authority entitled, "Resolution of the Middlesex County Improvement Authority Authorizing the Issuance of County- Guaranteed Capital Equipment and Improvement Revenue Bonds" (the "General Bond Resolution "). The Loan Agreement, in the form submitted herewith in Exhibit A (a copy of which is on file in the office of the Clerk of the Municipality), is hereby approved with such changes, amendments or modifications as may be approved by counsel or bond counsel to the Municipality and bond counsel to the Authority and the County. Section 3. The full faith and credit of the Municipality are hereby pledged to the punctual payment of the obligations set forth in the Loan Agreement authorized by this ordinance, including without limitation, (1) all Basic Loan Payments and Loan Payments obligations of the Municipality under the Loan Agreement, including Authority Administrative Expenses and Additional Loan Payments, (ii) all amounts due and owing to the County as a result of payments made by the County on behalf of the Municipality under the Loan Agreement pursuant to the County Guarantee, including County Guarantee Costs, and (iii) all direct and indirect costs of the Authority and the County related to the enforcement of the Loan Agreement and the County Guarantee ((1), (Ii) and (iii) collectively, the "Loan Payment Obligation "). The Loan Payment Obligation under the Loan Agreement shall be a direct, unlimited and general obligation of the Municipality, not subject to annual appropriation by the Municipality pursuant to the County Improvement Authorities Law, and unless paid from other sources, the Municipality shall be obligated to levy ad valorem taxes upon all the taxable property within the Municipality for the payment of the Loan Payment Obligation thereunder without limitation as to rate or amount. An Authorized Municipal Representative (as defined in the Loan Agreement) is hereby authorized and directed to execute the Loan Agreement on behalf of the Municipality in the form as attached hereto in Exhibit A along with any of the aforesaid necessary changes, and the Clerk of the (Municipality is hereby authorized to attest to such signature and affix the seal of the Municipality ithereto and the Loan Agreement is authorized to be delivered to the Authority. All representatives, officials and employees of the Municipality are hereby authorized and directed to enforce and to implement provisions of the Loan Agreement. Section 4. The following additional matters are hereby determined, declared, recited and stated: (a) The maximum Loan Payment Obligation for which the Municipality shall be obligated hereunder, which, inter alia, will be used for the payment of principal of and interest on the 3onds of the Authority,'shall not exceed the sum necessary to (a) undertake the various capital mprovements and the acquisition and installation, as applicable, of certain items of equipment by the Municipality and described in Exhibit B , (b) pay interest on the Authority's Bonds allocated to the Municipality's various capital improvements and items of equipment, and (c) pay the Municipality's Share of the costs of issuance, Authority Administrative Expenses, Additional Loan Payments, -ounty Guarantee Costs and all other amounts required to be paid by the Municipality under the -can Agreement, as and if applicable. (b) The Bonds shall mature no later than 15 years from the date of issue. NO. 12 -14 PAGE 3 (c) The Loan Payment Obligation authorized herein shall remain effective until the Authority's Bonds shall have been paid in full in accordance with their terms and /or when obligations of the Municipality under the Loan Agreement have been satisfied, notwithstanding occurrence of any other event. (d) The various capital improvements and items of equipment described in Exhibit B ached hereto are hereby approved to be undertaken and financed through the Authority in :ordance with the terms of the Loan Agreement, with such changes, amendments or modifications may be approved by counsel or bond counsel to the Authority. (e) The average period of usefulness of the various capital Improvements and items of equipment described In Exhibit B attached hereto within the limitations of the Local Bond Law, according to the reasonable useful life thereof computed from the dated date of the loan authorized by this loan ordinance, shall not exceed 15 years. (f) The supplemental debt statement required by the Local Bond Law has been duly e and fled in the Office of the Clerk of the Municipality and a complete executed duplicate thereat been filed in the Office of the Director of the Division of Local Government Services, New Jersey artment of Community Affairs, and such statement shows that the gross debt of the Municipality as led in the Local Bond Law is increased by the authorization of the loan provided for in this loan lance by $60,000 and the said loan authorized by this loan ordinance will be within all debt itions prescribed by the Local Bond Law. (g) An aggregate amount not exceeding $12,000 for items of expense listed in e pitted under section 20 of the Local Bond Law is included In the estimated cost indicated herein various capital Improvements and items of equipment described in Exhibit B attached hereto. Section 5. To the extent the Municipality is an "Obligated Person" (as defined under the Rule (as hereinafter defined)), the Municipality hereby agrees to comply with the requirements of Rule 1502 -12 (the "Rule ") promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended and supplemented, including the secondary market disclosure requirements contained therein, and agrees to covenant to such compliance in the Loan Agreement. The Mayor, Clerk, Chief Financial Officer or any other Authorized Municipal Representative are each hereby authorized and directed to execute and deliver a Continuing Disclosure Agreement, approve and "deem final" the Preliminary and Final Official Statements of the Authority to the extent the information contained therein relates to the Municipality and to execute and deliver all certificates, documents and agreements to the Authority in connection therewith and to file budgetary, financial and operating data of the Municipality on an annual basis and notices of certain enumerated events as required to comply with and in accordance with the provisions of the Rule. Section 6. The Mayor, Clerk, Chief Financial Officer of the Municipality or other Authorized Municipal Representative are each hereby authorized and directed to execute and deliver any and all certificates, documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the execution and delivery of the Loan Agreement, the undertaking of the various capital improvements and the acquisition and installation, as applicable, of certain items of equipment by the Municipality and all related transactions contemplated by this ordinance. Section 7. Upon the payment of all amounts referenced In Section 4(c) herein, the full faith and credit pledge of the Municipality as to its Loan Payment Obligation authorized herein shall cease to exist. Section 8. The capital budget of the Municipality is hereby amended to conform with the provisions of this ordinance to the extent of any inconsistency herewith. The resolution in the form promulgated by the Local Finance Board showing full detail of the amended capital budget and capital program as approved by the Director of the Division of Local Government Services, New Jersey Department of Community Affairs is on file with the Clerk of the Municipality and is available for public inspection. Section 9. The provisions of this ordinance are severable. To the extent any clause, phrase, sentence, paragraph or provision of this ordinance shall be declared invalid, illegal or unconstitutional, the remaining provisions shall continue to be in full force and effect. NO. 12 -14 PAGE_ Section 10. The Municipality reasonably expects to reimburse any expenditures toward the costs of the various capital improvements and items of equipment described in Exhibit B attached to this loan ordinance and paid prior to the entering into of the loan authorized by this loan ordinance with the proceeds of such loan. This Section 10 is intended to be and hereby is a declaration of the Municipality's official intent to reimburse any expenditures toward the costs of the various capital improvements and items of equipment described in Exhibit B attached to this loan ordinance to be Incurred and paid prior to entering into of the loan authorized herein all in accordance with the IntemaI Revenue Code of 1986, as amended (the "Code ") and any regulations promulgated thereunder. Section 11. The Clerk of the Municipality is hereby authorized and directed to cause the publication of the text of this ordinance In full after Introduction and final adoption in accordance with applicable law and to arrang f or the public hearing thereon and final adoption thereof. Section 12. This ordinance shall take effect twenty (20) days after final adoption and publication in accordance with applicable law. DO NOT RECORD OF COUNCIL VOTE COUNCILMAN YES NO NV A.B. COUNCILMAN YES NO NV A.B. ELM X X D X I lYLES x M1 SaO X STTARZ x X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overrule Veto July 19, 2012 Adopted on first reading of the Council o the Borough of Carteret, N.J., on �wt 2, 2012 Adopted on second re g h a e a rg,d , 7 APPROVED BY A R ON It - 1 �, MUNICIPALCL RK \� }\ EF } \ }\ u z }} \ } {\ a 00 � ET \ ( ° e \ P � 0 -0 #«�/ \\ \{ \ \// 5 rn §7: /a0 ƒ[\ Ig 0 }\ }# \ \ IF 2 $ } } / / } } \ \ , $ \ \ \ } , , 0 0 \ \ P � 0 -0 #«�/ \\ \{ \ \// 5 rn §7: /a0 ƒ[\ Ig 0 }\ }# \ \ 0 -0 #«�/ \\ \{ \ \// 5 rn §7: /a0 ƒ[\ Ig 0 }\ }# \ \ 80WOFCAITERFT Q nt Est Cost Hsefil life Car System 1 SO.000AO 5Years 3 $IQQ.0J000 5Years s Subtotal: 150,000 00 0 8000 10years OD 0 00 15Y... IO& OD 0 00 5Years bt Roferis Subtotal. 00 100 Omm NOD 0o ugh Total Borrowing- Sro-O (T00 ..ad tls rhedu!e above and atl owladga az cost rid the oscfill li. of the equipment ardler We understand that the cat of the fesbixtuyes will be wxl as tha basis for calcdating fcc m the binds that will be i_cst d by the Middkr rw'mxd Authority (the 'Authnity )to finance the Izas A.. payments that will be pa /able by Ca er f eArtha @y, fia Print Nam.:and Title Date 597593 Kathleen W Hamer a&, d the Borough of Carteret �rf al 1, l ( Q nt Est Cost Hsefil life Car System 1 SO.000AO 5Years 3 $IQQ.0J000 5Years s Subtotal: 150,000 00 0 8000 10years OD 0 00 15Y... IO& OD 0 00 5Years bt Roferis Subtotal. 00 100 Omm NOD 0o ugh Total Borrowing- Sro-O (T00 ..ad tls rhedu!e above and atl owladga az cost rid the oscfill li. of the equipment ardler We understand that the cat of the fesbixtuyes will be wxl as tha basis for calcdating fcc m the binds that will be i_cst d by the Middkr rw'mxd Authority (the 'Authnity )to finance the Izas A.. payments that will be pa /able by Ca er f eArtha @y, fia Print Nam.:and Title Date 597593 Kathleen W Hamer a&, d the Borough of Carteret AFFIDAVIT OF PUBLICATION The following is a true copy of an Ordinance or Resolution of the Borough of Carteret that has appeared in the Home News Tribune, a newspaper which is printed in Freehold, New Jersey and published in Neptune, in said County and State and of general circulation in said county. One 1 time(s), once in each issue as follows: July 24, 2012 Kathleen M. Barney, MMC�/" Municipal Clerk l Notary Public of New Jersey LINDA A. RIVERA NOTARY PUBLIC OF NEW JERS MY COMMISSION EXPIRES MAY 2. Sworn and subscribed before me this , day of v Clerk of the natnteen M. Berney Borough of Carteret "m Authority uipment a.d Improvement Financing LI54 PREL/M /NARY ECTS cb ant. Est Cost Useful file 'm System 1 5Years 5�tfE& 5 3 -�$$1 5 Years Subtotal: S1b0�Opp.pp Subtotal 0 0.00 10.00 10 Yea's ,,,,ECTS ! , i s Subtotal: - $000 $0..00 15 Years OJECTS 597593 AFFIDAVIT OF PUBLICATION The following is a true copy of an Ordinance or Resolution of the Borough of Carteret that has appeared in the Home News Tribune, a newspaper which is printed in Freehold, New Jersey and published in Neptune, in said County and State and of general circulation in said county. One 1 time(s), once in each issue as follows: August 10, 2012 1 16thleen M. Barney, MM(C Municipal Clerk 605351