USD 327 Resolution to determine the financing for EES improvements

(First Published in the Ellsworth County Independent/
Reporter, July 12, 2018)

RESOLUTION NO. 18-12

A RESOLUTION OF THE GOVERNING BODY
OF UNIFIED SCHOOL DISTRICT NO. 327, ELLSWORTH COUNTY, KANSAS (ELLSWORTH-KANOPOLIS-GENESEO) DETERMINING THE ADVISABILITY OF FINANCING
THE ACQUISITION, CONSTRUCTION, FURNISHING
AND EQUIPPING OF SCHOOL BUILDING
IMPROVEMENTS BY THE EXECUTION AND DELIVERY OF A LEASE PURCHASE AGREEMENT.

WHEREAS, the Board of Education (the “Governing Body”) of Unified School District No. 327, Ellsworth County, Kansas (Ellsworth-Kanopolis-Geneseo) (the “District”) has considered the need of the District and its residents for acquiring, constructing, furnishing and equipping improvements to Ellsworth Elementary School, including the construction of a new multi-purpose cafeteria/flex room and making improvements to the gymnasium, including but not limited to, flooring, window, and other structural improvements, and all improvements appurtenant thereto (collectively the “Improvements”), and has found and determined that making the Improvements is in the public interest; and
WHEREAS, the Governing Body has considered various means of financing the Improvements, and has determined to finance all or a portion of the Improvements through the execution and delivery of a lease purchase agreement; and
WHEREAS, pursuant to K.S.A. 72-1149, and subject to the conditions set forth in K.S.A. 10 1116c, the District has legal authority to authorize the Improvements and the financing of the same through the execution and delivery of a lease purchase agreement.
NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF UNIFIED SCHOOL DISTRICT NO. 327, ELLSWORTH COUNTY, KANSAS (ELLSWORTH-KANOPOLIS-GENESEO):
Section 1. Authorization to Acquire, Construct, Furnish and Equip the Improvements.  The District is hereby authorized to complete final plans and specifications and to contract for the acquisition, construction, furnishing and equipping of the Improvements, at an estimated cost of $1,450,000.
Section 2. Intent to Enter into Lease Purchase Agreement.  The Governing Body shall commence negotiations to enter into a lease purchase agreement (the “Lease”) to provide financing for all or a portion of the Improvements in an amount not to exceed $1,450,000, which Lease shall contain such terms, conditions and provisions as shall be acceptable to the Governing Body.  Piper Jaffray & Co., Leawood, Kansas (the “Placement Agent”) is hereby designated as the placement agent to the District for the purpose of entering into such negotiations with a suitable lessor (the “Lessor”).
Section 3. Conditions to Execution and Delivery of the Lease.  The execution and delivery of the Lease is subject to the publication and protest period requirements of K.S.A. 10 1116c, adoption of a Resolution approving the forms and authorizing the execution of the Lease and a site lease, if necessary, and execution and delivery of such legal documents as may be necessary in connection with it, the terms of which shall be satisfactory to the Governing Body and to the Lessor.
Section 4. Expenditure of Funds in Anticipation of Financing. In order to permit and expedite the acquisition, construction, furnishing and equipping of the Improvements and realization of the public benefits to be derived from it, the District may expend lawfully available funds prior to execution and delivery of the Lease, to be reimbursed upon execution and delivery of the Lease.
Section 5. Declaration of Official Intent. This Resolution shall constitute a declaration of official intent under Treasury Regulation Section 1.150-2.
Section 6. Total of Payments; Publication of Resolution.  The expected total of all payments to be made by the District pursuant to the Lease (excluding amounts required for maintenance, taxes or insurance on the Improvements) is $1,966,066.67.  The Clerk of the District is hereby authorized and directed to publish this Resolution once each week for two consecutive weeks in a newspaper of general circulation within the boundaries of the District.
Section 7. Further Authority.  The officials of the District, the Placement Agent, the District's attorney, Gilmore & Bell, P.C., the District’s bond counsel, and other consultants are authorized to proceed with the planning and document preparation of the Improvements, the Lease and other legal documents necessary in order to comply with the intent of this Resolution, subject to final approval of such documents by the Governing Body.
ADOPTED by the Governing Body of the District on July 5, 2018.

(SEAL)                            
/s/Elizabeth Donley, President

ATTEST:
/s/Dina D. Rankin, Clerk

2t 7/19