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School Board Minutes 9/23/2010

LAKE REGION SCHOOL DISTRICT
SPECIAL BOARD MEETING
September 23, 2010

There was a Special Board Meeting on Thursday, September 23, 2010 at 5:30 p.m. in the Central Office Conference Room.

CALL TO ORDER AND ROLL CALL

Wayne Warner called the meeting to order at 5:30 p.m.  Board members present were:  Janice Barter, Kenneth Brown, Jean Clancy, Jody Gray, Lesley Niemy, Philip Shane, Karla Swanson-Murphy, and Patrick Phillips, Superintendent of Schools.  Richard Merritt and Laura Ordway arrived late.  Beth Chaplin, Laurie Mondville, and Donna Norton were absent.

APPROVAL OF THE AGENDA

A motion was made by Jody Gray, seconded by Ken Brown, to approve the agenda as presented.  Motion carried unanimously.

ACTION ITEMS

Vote to Approve the Bond Loan Documents

A motion was made by Jody Gray, seconded by Janice Barter, to move that the Vote entitled, “Vote to Designate Certain Bonds as Qualified School Construction Bonds and Have Said Bonds Issued as Direct Pay Obligations,” be approved in form presented to this meeting and that a copy of said Vote be included with the minutes of this meeting.

Vote to Designate Certain Bonds as Qualified School Construction Bonds and Have Said Bonds Issued as Direct Pay Obligations

        Whereas, on September 13, 2010 this Board adopted certain Votes entitled, “Votes to Authorize Loan Agreements to Borrow Not More Than $13,837,000 from Maine Municipal Bond Bank,” (hereinafter, the “Loan Agreement Authorization”) which authorized  Maine School Administrative District No. 61 (the “District”) to enter into loan agreements with the Maine Municipal Bond Bank (collectively, the “Loan Agreement”) providing for the District to issue up to $13,837,000 in bonds or notes to provide funding in connection with a school construction project previously approved by the District’s voters on November 3, 2009 (the “Project”), including not more than $10,013,498 to be issued as qualified school construction bonds; and

        Whereas, pursuant to the terms of the Loan Agreement, the Maine Municipal Bond Bank proposes to purchase the District’s bonds or notes in the original principal amount of $9,910,444 for the Project (the “Bonds”), including $9,210,444 of the Bonds as qualified school construction bonds (the “QSCBs”); and

        Whereas, pursuant to the terms of the Loan Agreement the District proposes to sell the Bonds, including the QSCBs, to the Maine Municipal Bond Bank, and to issue at a later time to be determined by


this Board the balance of the bonds or notes for the Project in the amount of up to $3,926,556;

        Now, Therefore, Be it VOTED, as follows:

        1.      That the QSCBs in the principal amount of $9,210,444 that the District proposes to issue pursuant to the Loan Agreement be designated as qualified school construction bonds pursuant to Section 54F and other applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”); and

        2.      That pursuant to Section 6431 of the Code, as amended by the Hiring Incentives to Restore Employment Act (Pub. L. No. 111-147), the District irrevocably elects to receive subsidy payments from the Department of the Treasury under Section 6431 with respect to the QSCBs in lieu of allowing a taxpayer to qualify for credits against that taxpayer’s federal income tax liability to the extent otherwise allowed under the Code; and

        3.      That the Loan Agreement may authorize the Maine Municipal Bond Bank or its designee (which may be the Bank Trustee as defined in the Loan Agreement) to make all filings with the Department of the Treasury and the IRS with respect to the QSCBs, including the authority to submit periodic filings with the United States Department of the Treasury and to receive periodic payments from the Secretary of the Department of the Treasury pursuant to Section 6431 of the Code of the federal interest subsidy with respect to the interest payable by the District under the QSCBs, and such authority may include authority to bind the District; and

        4.      That the Chair of the Board of School Directors and the Treasurer, acting singly, be authorized in the name and on behalf of the District to execute and deliver the Loan Agreement and such other instruments, documents, certificates and agreements, and to take or cause to be taken such further actions for and on behalf of the District as may be necessary, convenient or appropriate to provide for the QSCBs to be issued as direct pay qualified school construction bonds and that the Secretary of the District be authorized to attest to the foregoing and attach the District’s seal to any of the foregoing; and

        5.      That except as amended hereby, the Loan Agreement Authorization is ratified and confirmed in all respects.

Motion carried unanimously.   

ADJOURNMENT

A motion was made by Janice Barter, seconded by Jean Clancy, to adjourn.

The meeting adjourned at p.m. 5:32 p.m.

                                                                __________________________
                                                                        Secretary

                                                                __________________________
                                                                    Date Approved