HomeMy Public PortalAboutOrd. 21-14orbinnuce
No, $21 -14 of lhQ
19 azaugh of Camera,
Councilman Presents the following Ordinance Seconded by Councilman
AN 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 LEASE AND
AGREEMENT WITH THE MIDDLESEX COUNTY
IMPROVEMENT AUTHORITY RELATING TO THE
ISSUANCE OF COUNTY - GUARANTEED CAPITAL
EQUIPMENT AND IMPROVEMENT REVENUE
BONDS, SERIES 2021 OE THE MIDDLESEX
COUNTY IMPROVEMENT AUTHORITY
WHEREAS, the Middlesex County Improvement Authority (the "Authority") is
authorized by 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 "Act "),
to provide within the County of Middlesex, State of New Jersey (the "County"), or any
beneficiary county, public facilities for use by the State of New Jersey, the County or any
municipality in the County or any beneficiary county, or any two (2) or more or any
subdivisions, departments, agencies or instrumentalities of any of the foregoing for any of
their respective govermnental purposes; and
WHEREAS, the Authority is authorized by the Act to lease to any governmental unit or
person, all or any part of any public facility, including but not limited to, capital
equipment, for such consideration and for such period or periods of time and upon such
other terms and conditions as it may fix and agree upon; and
WHEREAS, the Authority has determined pursuant to the Act to finance 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 mid passenger vehicles (the "Equipment'), to various governmental entities within
the County, including the County and the Authority (the "2021 Program "); and
WHEREAS, such capital equipment will be financed through the issuance of County -
Guaranteed Capital Equipment And Improvement Revenue Bonds, Series 2021 (the
"Series 2021 Bonds "); and
WHEREAS, the Borough of Carteret, in the County of Middlesex, State of New Jersey
(the "Municipality") has determined to participate in the 2021 Program and to lease
certain capital equipment set forth in Exhibit A attached hereto and incorporated by
reference herein (the "Equipment') from the Authority pursuant to the terms and
conditions set forth in the hereinafter defined Lease; and
WHEREAS, there has been prepared . and submitted to the Municipality the form of the
Lease and Agreement (the "Lease "), to be entered into by and between the Authority and
the Municipality, which Lease has been approved by the Authority and which is on file in
the office of the Clerk of the Municipality, providing for the acquisition and leasing of
the Equipment from the Authority; and
WHEREAS, all terms used herein and not otherwise defined shall have the same
meanings ascribed to such terms under the Lease.
NOW THEREFORE, BE IT ORDAINED AND ENACTED BY T1IE GOVERNING
BODY OF THE BOROUGH OF CARTE BE- IN THE COUNTY OF
MIDDLESEX, STATE OF NEW JERSEY (not less than two - thirds of all members
thereof affirmatively concurring) AS FOLLOWS:
NO. _ #21 -14
PAGE 2
Section 1. Pursuant to Section 35 of the Act (N.J.S.A. 40:37A -78), the Municipality
is hereby authorized and directed to enter into and perform the Lease, which Lease
provides for the leasing of the Equipment acquired with the proceeds of the Series 2021
Bonds to be issued by the Authority under a resolution of the Authority 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" (as the same may be amended and supplemented from time to tine, the
"General Bond Resolution "). The Lease, in the form 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 2. The full faith and credit of the Municipality are hereby pledged to
the punctual payment of the obligations set forth in the Lease authorized by this
ordinance, including without limitation, (i) all Basic Rent and Rent obligations of the
Municipality under the Lease, including Authority Administrative Expenses and
Additional Rent, (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 Lease Pursuant to the
County Guaranty, including County Guaranty Costs and (iii) all direct and indirect costs
of the Authority and the County related to the enforcement of the Lease and the County
Guaranty ((i), (ii) and (iii) collectively, the "Lease Payment Obligation "). The Lease
Payment Obligation under the Lease shall be a direct, unlimited and general obligation of
the Municipality, not subject to annual appropriation by the Municipality pursuant to the
Act, and unless paid from other sources, the Municipality shall be obligated to levy ad
valorem taxes upon all the taxable property within the jurisdiction of the Municipality for
the payment of the Lease Payment Obligation thereunder without limitation as to rate or
amount.
Section 3. The Mayor or other Authorized Municipal Representative (as
defined in the Lease) is hereby authorized and directed to execute the Lease on behalf of
the Municipality in the form on file in the office of the Clerk of the Municipality and the
Clerk of the Municipality is hereby authorized and directed to attest to such signature and
affix the seal of the Municipality thereto and the Lease is authorized to be delivered to the
Authority. All representatives, officials and employees of the Municipality are hereby
authorized and directed to enforce acrd to implement provisions of the Lease.
Section 4. The following additional matters are hereby determined, declared,
recited and stated:
(1) The maximum Lease Payment Obligation for which the Municipality shall
be obligated hereunder, which, inter alga, will be used for the payment of principal of and
interest on the Series 2021 Bonds of the Authority shall not exceed the sum necessary to
(a) acquire the Municipality's Equipment which will be subject to the Lease, (b) pay
interest on the Series 2021 Bonds allocated to the Municipality and used to acquire the
Municipality's Equipment, and (c) pay the Municipality's share of the costs of issuance,
Authority Administrative Expenses, Additional Rent, County Guaranty Costs and all
other amounts required to be paid by the Municipality under the Lease.
(2) The Series 2021 Bonds shall mature within five (5) years from the date of
issue.
(3) The Lease Payment Obligation authorized herein shall remain effective
until all the Series 2021 Bonds shall have been paid in full in accordance with their terms
and /or when all obligations of the Municipality tinder the Lease have been satisfied,
notwithstanding the occurrence of any other event, including but not limited to the
termination of the Lease with respect to some or all of the police vehicles and capital
equipment leased thereunder. -
(4) The Equipment is hereby approved to be leased from the Authority in
accordance with the terms of the Lease, with such changes, amendments or modifications
as may be approved by counsel or bond counsel to the Authority.
NO. #21 -14
PAGE. 3
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 15c2 -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 Lease. The Mayor, Clerk, Chief
Financial Officer or other Authorized Municipal Representative are each hereby
authorized and directed to execute and deliver a Continuing Disclosure Agreement,
approve and "deem final" the Official Statement of the Authority and the preliminary
form thereof 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 G. The Mayor, Clerk, Chief Financial Officer 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 Lease, the leasing of the Equipment which is to be the subject of the Lease and all
related transactions contemplated by this ordinance.
Section 7. Upon the payment of all amounts referenced in Section 4(3)
herein, the full faith and credit pledge of the Municipality as to its Lease Payment
Obligation authorized herein shall cease to exist.
Section S. 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.
Section 9. This ordinance shall take effect in accordance with applicable law.
RECORD OF COUNCIL VOTE
COUNCILMAN
YES
NO
NV
A.D.
COUNCILMAN
YES
NO
NV
A.D.
BELLINO
X
JOHAL,
X
DIAZ
X
KRUM
X
DIMASCIO
X
NAPLES
X
X- Indicate Vote All- Absent NV - Not Voting XOR- Indicates Vote to Overrule Velo
Adopted on first reading of the Council of the Borough of Carteret, N.J., on Tt ly-22, 2021
Adopted on second reading after hearing on A ust 26 2021
APPROVED BY
N1 YOR
ON
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MIIMCIPAI yr rRR
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Exhibit A
Middlesex County Improvement Authority
2021 Capital Equipment and Improvement Financing Program
Project List
Carteret Borough
Useful
Proiect Est. Cost Life
FIVE YEAR PROJECTS
Loan
None $0.00 5 Years
Subtotal $0.00
Lease
Police Vehicles $250,000.00 5 Years
Subtotal $250,000.00
Five Year Projects Subtotal: $250,000.00
Loan Total: $0.00
Lease Total: $250,000.00
Total Borrowing: $250,000.00
AFFIDAVIT OF PUBLICATION
The following is a true copy of an Ordinance or Resolution of the Borough of
Carteret that has appeared in the Star Ledger, a newspaper which is printed in
Newark, New Jersey and published in Essex County, of general circulation in
said county and state. One 1 time(s), once in each issue as follows:
July 27, 2021
1
YU
1kf
ar'mela Pojor4e s , RM
Municipal Clerk
Notary Public of New Jersey
DANA C, `QRCHEVAL
NOTARY PUBW of NEW JERSEY
MYCOMMISSlonEXPIMS 1/1212022
Sworn and subscribed before
me this � day of <aU %G
AFFIDAVIT
OF PUBLICATION
The following is a true copy of
an Ordinance or Resolution of
the Borough of Carteret that
has appeared in the Star Ledger,
a newspaper which is printed
in Newark, New Jersey and
published in Essex County, of
general circulation in said county
and state. One 1 time(s), once in
each issue as follows:
September 1, 2021
Municipal Clerk
Notary Public of New Jersey
bANA 6. ARCHEVAL
NOTARY PUBLIC OPNEW JERSEY
MY Commission EXPires 1/1212022
Sworn and subscribed before
me this 1,0 { day of 5 , ,lr< " A
BOROUGH OFCARTERET
PUBLIC NOTICE
ORDINANCE #21 -14
LEASE ORDINANCE STATEMENT AND SUMMARY
The lease ordinance, the summary terms of which are included here-
in, has been finally adopted by the governing body of the Borough of
Carteret, in the County of Middlesex, State of New Jersey on August
26, 2021 and the 20 day period of limitation within which a suit, action
or proceeding questioning the validity of such lease ordinance can be
commenced, as provided in the Local Bond Law, has begun to run from
the date of the first publication of this statement. Copies of the full
lease ordinance are available at no cost at the Municipal Clerk's Office,
61 Cooke Avenue, Carteret, NJ for members of the general public who
request the same. The summary of the terms of such lease ordinance
follows:
Title: AN 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 LEASE AND AGREEMENT WITH THE MIDDLESEX
COUNTY IMPROVEMENT AUTHORITY RELATING
TO THE ISSUANCE OF COUNTY - GUARANTEED
CAPITAL EQUIPMENT AND IMPROVEMENT REVENUE
BONDS, SERIES 2021 OF THE MIDDLESEX COUNTY
IMPROVEMENT AUTHORITY
Purpose(s): Lease police vehicles (described in Exhibit A below)
from and approve the entering into of a lease agree-
ment with the Middlesex County Improvement Au-
thority
Appropriation: $250,000
Bonds /Notes Authorized: N/A (Bonds will be issued by the Middlesex
County Improvement Authority to finance the acqui-
sition of the police vehicles.)
Grant Appropriated: None
Section 20 Costs: N/A
Useful Life: N/A (Lease term is 5 years)
Carmela Pogorzelski, Municipal Clerk
Exhibit A
Middlesex County Improvement Authority
2021 Capital Equipment and Improvement Financing Program
Project List
Carteret Borough
Project Est. Cost Useful Life
FIVE YEAR PROJECTS
Loan
None $0.00 5Years
Subtotal $0.00
Lease
Police Vehicles $250.000.00 5Years
Subtotal $250,000.00
Five Year Projects Subtotal: $250,000.00
Loan Total: $0.00
Lease Total: $250,000.00
Total Borrowing: $250,000,00 -
i
09/01/2021 $225.40