HomeMy Public PortalAbout2004/07/06 JULY 6, 2004
SPECIAL MEETING
A Special Meeting of the Mayor and Council of the Borough of
Carteret was called to order by Council President Ronald G. Rios
approximately 4:30 P.M. on Tuesday, June 25, 2004, Memorial
Municipal Building, Borough Hall, 61 Cooke Avenue, Carteret, New
Jersey.
ROLL CALL
Upon individual roll call, the following were noted present:
Councilmember Randy Krum
,, Frank parisi
,, Ronald Rios
,, Joseph Sitarz
,, Brian Sosnowski NOTED ABSENT
Noted absent were Mayor Daniel J. Reiman and Councilmember
Susan Naples.
Also noted absent was Borough Attorney Robert J. Bergen, Esq.
PRAYER, PLEDGE
OF ALLEGIANCE
The meeting was opened with a moment of Silent Prayer and The
Pledge of Allegiance led by Council President Ronald Rios.
STATEMENT OF
The Clerk stated that on July 1, 2004, Notice was published in The MEETING NOTICE
Home News Tribune, The Star-Ledger and posted on the bulletin
board. Notice was also published on July 3, 2004.
PURPOSE OF
The purpose of the meeting was to hold a Public Heating on Ordinance MEETING
#04-23, Lease Agreement with Middlesex County Improvement
Authority. Formal Action may be taken.
ORDINANCE # 04-23
The Clerk stated Ordinance #04-23 was introduced and passed upon AUTHORIZING
First Reading at a Special Meeting of the Borough Council held on ENTERING INTO A
June 25, 2004. It was duly published in the Home News Tribune on LEASE
July 1, 2004 with notice that it will be considered for final passage AGREEMENT WITH
after Public Heating to be held on July 6, 2004 at approximately 4:30 THE MCIA
P.M. The Ordinance was posted on the bulletin board and copies were RELATING TO THE
made available to the general public and according to law, she read the ISSUANCE OF
CAPITAL
Ordinance by title. EQUIPMENT LEASE
REVENUE BONDS
JULY 6, 2004 -
PUBLIC HEARING Upon MMS&C, by Councilmembers Parisi and Sitarz and unanimous
affirmative vote of the five (5) Councilmembers present, Council
President Rios declared the Public Hearing to be open:
HEARING CLOSED There being no comments or objections to the Ordinance, Council
President Rios declared the Public Hearing to be closed, upon
MMS&C, by Councilmembers Sitarz and Parisi and unanimous
affirmative vote of the five (5) Councilmembers present.
ORDINANCE # 04-23 Upon MMS&C, by Councilmembers Sitarz and Parisi
AUTHORIZING THE ORDiNANCE #04-23
ENTERING INTO A
LEASE AND
AGREEMENT WITH AN ORDiNANCE OF THE BOROUGH OF CARTERET, iN THE
THE MCIA RELATING COUNTY OF MIDDLESEX, STATE OF NEW JERSEY,
TO THE ISSUANCE OF APPROVING AND AUTHORIZiNG THE ENTERING INTO,
CAPITAL EQUIPMENT EXECUTION AND DELIVERY OF A LEASE AND AGREEMENT
LEASE WITH THE MIDDLESEX COUNTY IMPROVEMENT
REVENUE BONDS AUTHORITY RELATING TO THE ISSUANCE OF COUNTY-
(In Full) GUARANTEED CAPITAL EQUIPMENT LEASE REVENUE
BONDS, SERIES 2004 OF THE MIDDLESEX COUNTY
IMPROVEMENT AUTHORITY.
WHEREAS, the Middlesex County Improvements 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 CN.J.S.A.
40:37A-44 ~ seq.) (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 acquisition of capital equipment for
the purpose of leasing the same to various municipalities located in the
County of Middlesex in the State of New Jersey (the "2004 Program");
and
WHEREAS, The Borough of Carteret, in the County of Middlesex,
State of New Jersey (the "Municipality") has determined to participate
in the 2004 Program and to lease certain capital equipment from the
Authority; 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 County of Middlesex, State of New
Jersey (the "County") and which is attached hereto as Exhibit A,
providing for the acquisition and leasing of certain items of Equipment
for the Authority, which Equipment is described in Exhibit B attached
hereto an incorporated by reference herein. All terms used herein and
not otherwise defined shall have the same meanings ascribed to such
terms under the Lease.
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JULY 6, 2004
NOW THEREFORE, BE IT ORDAINED AND ENACTED BY THE ORDINANCE # 04-23
GOVERNING BODY OF THE BOROUGH OF CARTERET, IN (Continued lnFull)
THE cOUNTY OF MIDDLESEX STATE OF NEW JERSEY (not
less than two-thirds of all members thereof affirmatively concurring)
AS FOLLOWS:
Section 1. Pursuant to section 78 of the County Improvement
Authorities Law, N.J.S.A. 40:48-1 ~ seq., the
Municipality is hereby authorized and directed to
enter into and perform the Lease, which Lease
provides for the leasing of certain Items of
Equipment acquired with the proceeds of County-
Guaranteed Capital Equipment Lease Revenue
Bonds, Series 2004 (the "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 Lease Revenue Bonds" ( the
"General Bond Resolution"). The Lease, in
substantially the form submitted herewith in
Exhibit A (a copy of which is on file in the office of
~he 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 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 Guarantee,
including County Guarantee Costs and (iii) all
direct and indirect cost of the Authority and the
County related to the enforcement of the Lease and
the County Guarantee ((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 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 Lease Payment Obligation
thereunder without limitation as to rate or amount.
JULy 6, 2004
ORDINANCE # 04-23 The Mayor or the Authorized Municipal Representative (as defined in
(Continued in Full) the Lease) is hereby authorized and directed to execute the Lease on
behalf of the Municipality in substantially such form as attached hereto
in Exhibit A 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, official and employees of the
Municipality are hereby authorized and directed to enforce and to
implement provision of the Lease.
Section 3. 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 alia, will be used for the
payment of principal of and interest on the
Bonds of the Authority shall not exceed the sum
necessary to (a) acquire the Municipality's
Equipment described in Exhibit B which will
be subject to the Lease, (b) pay interest on the
Authority's 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 Guarantee Costs and all other amounts
required to be paid by the Municipality under
the Lease.
(2) The Bonds shall mature within fifteen (15)
years from the date of issue.
(3) The Lease Payment Obligation authorized
herein shall remain effective until all the
Authority's Bonds shall have been paid in full
accordance with their terms and/or when all
obligations of the Municipality under 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 items of Equipment
leased thereunder.
(4) The Items of Equipment described in Exhibit B
are hereby approved to be leased from the
Authority in accordance with the terms of the
Lease, with such changes, amendments or
modification as may be approved by counsel or
bond counsel to the Authority.
Section4. 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
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JULY 6, 2004
ORDINANCE # 04-23
amended and supplemented, including the (Continued in Full
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 notice of certain
enumerated events as required to comply
with an in accordance with the provisions of
the Rule.
Section 5. The Mayor, Clerk, Chief Financial Officer
or 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 6. Upon the payment of all amounts referenced
in Section 3(3) herein, the full faith and
credit pledge of the Municipality as to its
Lease Payment Obligations authorized
herein shall cease to exist.
Section 7. 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 8. This ordinance shall take effect twenty (20)
days after final adoption and publication in
accordance with applicable law.
JULY 6, 2004
ADOPTED was finally adopted. Upon individual roll call vote,
Councilmernbers Krum, Parisi, Rios, Sitarz and Sosnowski
voted in the affirmative. Councilmember Naples was noted
absent.
Approved and Adopted: July 6, 2004
Introduced: June 25, 2004
Advertised as Adopted on First Reading
with notice of Public Hearing: July i, 2004
Heating Held: July 6, 2004
Approved by: Mayor Daniel J. Reiman
Advertised as Finally Adopted: July 7, 2004
ADJOURNED There being no further discussion, upon MMS&C, by
Councilmembers Sitarz and Sosnowski and unanimous
affirmative vote of the five (5) Councilmembers present, the
meeting was adjourned at approximately 4:35 P.M.
KMB/cp