DATE, TIME, PLACE OF MEETING
The Calcasieu Parish School Board met in the Conference Room of the Calcasieu Parish School Board located at 1732 Kirkman Street, Lake Charles, Louisiana, on Tuesday, June 4, 2002, at 5:00 p.m. John M. Falgout, President, called the meeting to order. Joe Andrepont led the prayer; Mr. Armentor led the Pledge of Allegiance.
ROLL CALL
The roll was called and the following members were present:
Joe A. Andrepont, Randall C. Armentor, Ricky Blackwell, Wilridge P. Doucet, Clara F. Duhon, Jay L. Duhon, John M. Falgout, L. J. "Berk" Fontenot, James W. Karr, Sr., Sheral A. LaVergne, James W. Pitre, Gregory P. Robert, Philip Tarver and Elray T. Victorian.
Carla Duplechin was absent.
MINUTES APPROVED
On motion by Mr. Andrepont, seconded by Mr. Blackwell and unanimously carried, the minutes of the regular meeting of May 7, 2002, were approved as presented.
Supplemental Agenda
By general consent the Supplemental Agenda was included as part of the regular agenda.
PRESENTATIONS
2002 Elementary State Fitness Champions
Mr. Miller, Assistant Superintendent, recognized the following members of the 2002 Physical Fitness Championship Team:
Head Coach – Greg Gauthier – Lake Charles Boston High School
Coach Don Soileau – Maplewood Middle School
Coach Etta Dunn- Moss Bluff Elementary
The following team members were introduced and each winner was presented a certificate for their excellence achievement:
Isaiah Benjamin – Barbe Elementary School
Keylon Williams – Henry Heights Elementary School
Kevin Berard – M. J. Kaufman Elementary School
Jade Moore – Henry Heights Elementary School
Jennifer Ledbetter – Maplewood Elementary School
Quiana Griffin – Henry Heights Elementary School
Coach Gauthier thanked the Board for their support and the elementary teachers for their positive influence on the students.
Mr. Falgout commended the coaches and students for their commitment and excellent record.
COMMITTEE REPORTS
Budget/Fiscal Management
Mr. Armentor, Chairman, reported that the Calcasieu Parish School Board
Budget/Fiscal Management Committee met Tuesday, May 28, 2002; a quorum was present.
Mr. Armentor presented the first item for discussion, employee salaries.
Ms. Jean Johnson, representative from the Calcasieu Federation of Teachers, addressed the committee concerning the issue of local pay raises and asked that the Board make funds available in next year's budget for a substantial raise. Other concerns addressed were the rising cost of insurance premiums and the need for funds to be made available for professional development.
Judy Ellis, representative of Calcasieu Association of Educators, also addressed the committee concerning insurance premiums. She advised the committee that not all employees have insurance through our system and therefore do not benefit from any adjustments made to insurance premiums. She also addressed the issues of raises for support personnel and the reduction of paperwork for teachers.
This item was for informational purposes only and no action was taken.
The next item was a request by Mr. Jay Duhon for the formation of a trust fund to enhance employee salaries.
Mr. Armentor moved on behalf of the committee, to form a trust fund to be established with $1 million from general fund reserves and an estimated $3.5 million from tobacco settlement funds with 2/3 of all interest earnings to be spent according to constitutional provisions including supplemental pay and benefits for employees and instructional grants and allotments to parish schools. The other 1/3 of interest earnings will be added to the trust principle amount until such amount reaches $10 million, at which time 90% of interest earnings will be spent on allowed expenditures with an additional 10% of interest going into principle. Proposals to manage the trust will be requested.
There was discussion and concern expressed relative to the combination or segregation of the trust fund monies: 1) general funds, and 2) tobacco settlement funds.
The following were discussed relative to the establishment of the trust fund:
· Indicate to the state our intentions.
· The fund would enable our Board to manage the school system’s monies by establishing the fund.
· Send a clear message to the public.
· All provisions and guidelines of the trust fund would be followed.
· The trust fund instrument would be brought back to the Board for review prior to finalization to ensure validity.
Mr. Delafield, attorney, explained to the Board members the process of establishing the trust fund.
It was noted that the approval of the motion is necessary to begin the process.
The Chair called for a vote on the motion. The motion carried.
Mr. Armentor reported that Charles Duhon, Internal Auditor, reviewed the school audits completed as of May, 2002, and advised the committee that all exceptions were handled according to the School Activity Funds Principles and Procedures Manual.
Mr. Armentor moved, on behalf of the committee, to approve the school audits. The motion carried.
The committee went into executive session to discuss an audit at Ralph Wilson Elementary School.
Mr. Armentor moved, on behalf of the committee, to accept the school audit at Ralph Wilson Elementary School. The motion carried.
Mr. Robert addressed the committee concerning riverboat funds remaining from the classroom pod project. The system will be receiving gaming revenues from the new Pinnacle Project as well as revenues from Delta Downs. Mr. Robert felt that the portion of funds that was not received for Phase IV of the classroom pod project should be allocated to District 34.
A motion was made to commit that portion of riverboat funds that would have gone for pods at S.J. Welsh and St. John Elementary to District 34 upon passage of the July, 2002 bond issue in that district.
An amendment to the motion was made to allocate riverboat funds to build pods as needed.
Mr. Bruchhaus advised the committee that $900,000 must be allocated annually to repay the debt. Any remaining funds can be spent at the Board's discretion.
A motion was made to follow the steps outlined in Phase IV and V of the riverboat classroom project to disperse funds to the districts. The motion died for lack of a second.
Mr. Doucet addressed his substitute motion and advised the committee that the funds be distributed in the order the bond issues were passed. Mr. Fontenot asked the chair to remove his second to the substitute motion as the intent of the motion changed. The chair ruled that the motion failed for lack of a second.
Mr. Armentor reported that Mr. Robert stated that he wanted a commitment of the funds from Phase IV of the riverboat pod project to be designated for St. John Elementary and S.J. Welsh Middle school projects. If the bond issue passes, the Board would designate the new sources of revenue, approximately $1.6 million, for District 34 projects. Mr. Tarver made a recommendation to the committee to defer until the committee can reprioritize the allocation of funding from the riverboat gaming revenues. The motion was voted on and failed.
Mr. Robert made a motion, seconded by Mr. Pitre, to send back to the Budget/Fiscal Management Committee the possibility of a commitment of funds from Phase IV of the riverboat pod project to be designated for St. John Elementary and S.J. Welsh Middle school projects.
It was noted that the existence of pods in bonding District 34 was largely the result of the change in the demographics in the area.
Several Board members expressed their opposition to the motion because the issue was discussed and acted on in the Budget/Fiscal Management Committee meeting.
The Chair called for a vote on the motion. The motion failed due to lack of a majority vote.
Mr. Armentor reported that Mr. Bruchhaus presented the next item on the agenda, an adjustment of the 2002-2003 projected revenues. Based on revised sales tax estimates, staff recommended that the 2002-2003 revenue levels be revised with a new sales tax projection of $61,575,000. Mr. Armentor moved, on behalf of the committee, to approve the 2002-2003 projected revenue and expenditure levels to $174,650,308. The motion carried.
The next item was Budget Revision #3 for the 2001-2002 General Fund Budget. Total projected revenues are $177,038,922, an increase of $3,555,490. Total projected expenditures are $179,449,040, an increase of $4,160,846. Total projected General Fund deficit for 2001-2002 increased in Budget Revision #3 by $605,356, to $2,410,118 leaving projected unreserved/undesignated fund balance at $15,935,938. The proposed Revision #1 for Special Revenue Funds projected revenues and other sources of $30,289,808, an increase of $5,790,739, and expenditures and other uses of $30,895,561, an increase of $6,087,591. Also included is Revision #2 for the 2001-2002 School Lunch Fund including revenues and other sources of $11,816,931 and expenditures and other uses of $12,422,684, with a projected deficit of $605,753. Projected fund balance at June 30, 2002 for the School Lunch Fund is $1,868,624, an increase of $273,425 over revision #2.
Mr. Armentor moved, on behalf of the committee, to approve budget revision #3 to the 2001-2002 General Fund. The motion carried.
Mr. Armentor moved, on behalf of the committee, to approve budget revision #1 to the Special Revenue Funds. The motion carried.
Next, Mr. Armentor stated that Mr. Bruchhaus presented the proposed expenditure budget for the 2002-2003 General Fund Budget. Changes made from the original draft first reviewed by staff include $1,325,000 in increased revenues and $4,867,951 in decreased expenditures. Staff asked the committee to approve the budget for final advertisement, public hearing, and final recommendation at the July 23, 2002 Board meeting and to grant permission to process purchase orders against non-salaried line items not to exceed 75% of the prior year line items.
Mr. Armentor reported that discussion followed concerning the request during the budget process for an increase in certified substitute teacher pay.
Mr. Armentor moved, on behalf of the committee, to approve the rate of certified substitute teacher pay to be increased to $50 in 2002-2003, $60 in 2003-2004, $70 in 2004-2005, and $80 in 2005-2006. The motion carried.
The issue of increased pay for school secretaries was discussed and a motion was made to increase the school bookkeepers' pay an additional $500. After further discussion, Mr. Fontenot withdrew his motion pending the Governor's decision on a possible support personnel raise.
Mr. Armentor moved, on behalf of the committee, to approve the proposed expenditure budget for the 2002-2003 General Fund for final advertisement, public hearing and final recommendation at the July 23, 2002 Board meeting and that permission be granted to process purchase orders against non-salaried line items not to exceed 75% of the prior year line items.
Mrs. LaVergne made an amendment to the motion, seconded by Mr. Victorian, to add an additional five days’ salary for each elementary counselor.
Mr. Bruchhaus stated that the issue was not addressed in the budget meeting because it was not included in the general fund budget for the next year. The Superintendent recommended that the Budget Committee address the issue prior to Board action.
After discussion, the Chair called for a vote on the amendment to the motion. The motion failed by a vote of 7 nays and 6 yeas.
Mr. Falgout called for a vote on the motion. The motion carried.
There was discussion concerning the process of spending the portion of the budget allocated for maintenance.
Mr. Armentor reported that the next item dealt with a possible sale of land to the Calcasieu Parish Police Jury for a road-widening project. The property is located on Weaver Road adjacent to St. John Elementary School. The police jury expressed an interest in acquiring this property by an Act of Donation from the school board.
It was noted that it is general practice to enter into cooperative endeavors with government entities. There was discussion relative to donating the land as opposed to selling the land. It was reported that sidewalks were being built as part of the road project. This would benefit the children attending St. John Elementary School.
Mr. Armentor moved, on behalf of the committee, to approve the Act of Donation to the Calcasieu Parish Police Jury for land located on Weaver Road. The motion carried.
A drainage easement between the school board and the police jury was presented for approval by the committee on land located on Weaver Road adjacent to St. John Elementary School. Mr. Armentor moved, on behalf of the committee, to approve this request. The motion carried.
Mr. Armentor reported that Mr. Bruchhaus presented a Financial Advisor Agreement between the Calcasieu Parish School Board and King, Bossier, Nosacka & Holley, Inc. The firm has provided advice and assistance regarding the Calcasieu School Board's financial matters and debt financings without a structured agreement or schedule of fees for services rendered. Staff advised it would be prudent to have an agreement for their services. Mr. Armentor moved, on behalf of the committee, to approve this agreement. The motion carried.
An agreement between the Calcasieu Parish School Board and Health Management Concepts Three, Inc. was presented to the committee for approval. HMC Three would act as a local program coordinator for the school board in the MAC agreement for a 10% charge to the system.
Mr. Armentor moved, on behalf of the committee, to approve the agreement with Health Management Concepts Three, Inc.
Mrs. Duhon addressed the Board as the President of the Louisiana School Boards Association to recommend that Board action be postponed until the next meeting. She further stated that the health maintenance service agreement was under the auspices of LSBA and the proposal with Health Management Concepts Three, Inc., needs further review. She wanted to be sure the Board fully understood the proposal and that LSBA would have the right to explain their position.
On motion by Mrs. LaVergne, seconded by Mrs. Duhon and approved, action on the health maintenance service agreement would be postponed until the next meeting, June 18, 2002.
Administration and Personnel
The Chair, Mr. Fontenot, reported that the Administration and Personnel Committee met Thursday, May 31, 2002 at 4:45; a quorum was present.
Mr. Fontenot reported that Harlan Duhon, representative of Local 861, International Brotherhood of Electrical Workers, was recognized. He distributed an excerpt from the official proceedings of the Police Jury from May 2, 2002. It stated that the front-end bid documents would include a clause that it would employ electricians who are certified as participating in a program of training and education or as having successfully completed such programs that are conducted or supervised by the National Joint Apprenticeship and Training Committee of the Electrical Industry and the Louisiana Department of Labor, Office of Regulatory Services, Labor Programs Section, Apprenticeship Division. Mr. Duhon requested that the Board consider adopting a similar resolution in support of employing qualified electricians.
Mr. Fontenot moved, on behalf of the committee, requesting approval for legal counsel and staff to review the information presented by Mr. Duhon at the next scheduled Administration and Personnel Committee meeting. The motion carried.
Next, the following policies were presented and approved:
JBA, Compulsory School Attendance Ages
IDG, Adult Education
Mr. Fontenot moved, on behalf of the committee, to approve the policies. The motion carried. The policies would lay over for two weeks and would be presented at the next board meeting, June 18, 2002, for final action.
JBA, Compulsory School Attendance Ages
IDG, Adult Education
Policies state:
File: JBA, COMPULSORY SCHOOL ATTENDANCE AGES
Every child in the school district is required by state law to attend public or private school from the child's seventh birthday until his eighteenth birthday, unless the child graduates prior to his eighteenth birthday, or is on an approved Home Study Program. Any child below the age of seven who legally enrolls in school shall also be required to attend school. If a child in these age brackets was a resident of this parish when school opened and enters school late without having attended another public or private school or approved Home Study Program during the current school session within or without the parish, a statement should be secured from the parents or guardian giving the reasons why the child has not been in school. If these reasons are not satisfactory, the matter shall be referred to the Supervisor of Child Welfare and Attendance, who may find it necessary to refer it to the proper court. The only exceptions to the compulsory school attendance provisions of state law are as follows:
1. Children living 2 1/2 miles or more from school with no public transportation provided or living 1 1/2 miles or more from the nearest transportation route; and
2. Children temporarily excused from attendance under rules and regulations of the State Board of Elementary and Secondary Education.
A child between the ages of seventeen (17) and eighteen (18) may withdraw from school prior to graduation with the written consent of his parent or guardian. Such consent shall be submitted to the Supervisor of Child Welfare and Attendance.
The principal may require certificates from physicians substantiating an illness.
Ref: La. Rev. Stat. Ann. §§17:221, 17:226.
FILE: IDG ADULT EDUCATION
The adult education program shall be administered and conducted in accordance with regulations established by the Division of Adult Education and Training of the Louisiana Department of Education.
1. Enrollment Requirements
Generally, in order to be enrolled in a local adult education program, an individual must be seventeen (17) years of age or older, and not currently enrolled in the K-12 system.
Upon enrollment, an assessment is administered to determine the student’s placement in the program. The length of time in the program varies from individual to individual.
2. Subject Matter Area
The adult education program shall operate one or more projects that provide services or instruction in one or more of the following:
Adult Basic Education (ABE)
Adult Secondary Education (ASE/GED)
English Literacy
Workplace Literacy
Family Literacy
3. Equitable Access and Participation
The Calcasieu Parish School Board shall provide an adult education and family literacy program. The program is designed to allow eligible individuals to continue their education to at least the level of completion of secondary school and to make available to them an opportunity to acquire basic literacy skills necessary to function in society and become more employable, productive, and responsible citizens and family members.
4. GED Testing
Students attending adult education programs may be recommended by the site of instruction to take the General Educational Development (GED) test.
Ref: 29 U.S.C. 2801 et seq.; La. Rev. Stat. Ann. 17:14; Louisiana Handbook for School Administrators, Bulletin 741, Louisiana State Plan for Adult Education, Louisiana Department of Education.
TAKE APPROPRIATE ACTION
Selling of “Bonds” for School District 33
Lake Charles, Louisiana
June 4, 2002
The Parish School Board of Calcasieu Parish, Louisiana, met in public session at 5:00 o’clock p.m. on Tuesday, June 4, 2002, at the regular meeting place of said Board in the Calcasieu Parish School Board Office, Lake Charles, Louisiana, pursuant to the provisions of written notice given to each and every member thereof and duly posted in the manner required by law.
John M. Falgout, President called the meeting to order and on roll call, the following members were present:
Joe A. Andrepont, Randy Armentor, Ricky Blackwell, Wilridge Doucet, Clara F. Duhon, J. L. “Jay” Duhon, John M. Falgout, L. J. “Berk” Fontenot, James W. Karr, Sr., Sheral LaVergne, James W. Pitre, Greg Robert, Philip E. Tarver, and Elray T. Victorian
ABSENT: Carla C. Duplechin
The President stated that one purpose of the meeting was the opening of sealed bids received for the purchase of $10,000,000 of General Obligation Public School Improvement Bonds of School District No. 33 of Calcasieu Parish, Louisiana, 2002 Series (the “Bonds”).
The President presented affidavits evidencing proper publication of the Notice of Sale of the Bonds, said affidavits indicating that the Notice of Sale had been published in the Southwest Daily News, a newspaper published in Calcasieu Parish, and of general circulation in School District No. 33 of Calcasieu Parish, Louisiana, on May 24, 2002 (such publication having been made at least seven (7) clear calendar days before the date scheduled for the receipt of bids), and also published in the Daily Journal of Commerce, a financial newspaper or journal containing a section devoted to municipal bond news published in the City of New Orleans, Louisiana on May 24, 2002 (which publication was made at least forty-eight (48) hours in advance of the date scheduled for the receipt of bids). The affidavits were approved and were ordered filed with the minutes of said meeting.
The President then presented the sealed bids for the purchase of the Bonds of School District No. 33 of Calcasieu Parish, Louisiana, which had been received, which bids were opened and found to be as follows:
EFFECTIVE
NAME OF BIDDER INTEREST RATE PREMIUM
1. Morgan Keegan & Company Inc 4.749338% -0-
New Orleans, Louisiana
2. Salomon Smith Barney Inc. 4.697681% -0-
Dallas, Texas
Upon verification, it was determined that the bid of Salomon Smith Barney Inc., of Dallas, Texas, was the lowest and best bid submitted for the purchase of the Bonds, whereupon the following resolution was introduced and, pursuant to motion made by Mr. Victorian and seconded by Mrs. Duhon, was adopted by the following vote:
YEAS: Mr. Andrepont, Mr. Armentor, Mr. Blackwell, Mr. Doucet, Mrs. Duhon, Mr. Duhon, Mr. Fontenot, Mr. Karr, Ms. LaVergne, Mr. Pitre, Mr. Robert, Mr. Tarver, and Mr. Victorian
NAYS: None
ABSENT: Carla Duplechin
NOT VOTING: President Falgout
RESOLUTION
A RESOLUTION PROVIDING FOR THE ISSUANCE OF $10,000,000 GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BONDS OF SCHOOL DISTRICT NO. 33 OF CALCASIEU PARISH, LOUISIANA, 2002 SERIES; CONFIRMING THE SALE THEREOF; AND PROVIDING FOR THE LEVY OF TAXES FOR THE PAYMENT OF PRINCIPAL THEREOF AND INTEREST THEREON.
WHEREAS, pursuant to a resolution adopted by the Calcasieu Parish School Board, governing authority of School District No. 33 of Calcasieu Parish, Louisiana (the “Issuer”) on February 19, 2002, and in conformity with notice duly published in compliance with law, there was held in School District No. 33 of Calcasieu Parish, Louisiana, on May 4, 2002, a special election at which there was submitted to the qualified electors of said district the following proposition:
BOND PROPOSITION
SUMMARY: AUTHORITY FOR SCHOOL DISTRICT NO. 33 OF CALCASIEU PARISH, LOUISIANA, TO ISSUE NOT EXCEEDING $29,600,000 OF UP TO 20-YEAR PUBLIC SCHOOL IMPROVEMENT BONDS FOR ACQUIRING AND/OR IMPROVING SCHOOL BUILDINGS AND OTHER SCHOOL RELATED FACILITIES WITHIN THE DISTRICT, SAID BONDS TO BE PAYABLE FROM AD VALOREM TAXES.
Shall School District No. 33 of Calcasieu Parish, Louisiana, incur debt and issue bonds in an amount not exceeding $29,600,000 for a period not to exceed twenty (20) years from the date thereof, with interest at a rate not exceeding nine (9%) percent per annum, for the purpose of acquiring and/or improving lands for building sites and playgrounds, purchasing, erecting, enlarging and/or improving school buildings and other school related facilities within and for said School District, and acquiring the necessary equipment and furnishings therefor, title to which shall be in the public, which said bonds shall be retired with, paid from and secured by ad valorem taxes on all taxable property within the limits of School District No. 33 of Calcasieu Parish, Louisiana, sufficient in rate and amount to pay said bonds in principal and interest?
and
WHEREAS, pursuant to said resolution calling said special election, and the notice of said election, the Calcasieu Parish School Board as the governing authority (the “Governing Authority”) of School District No. 33 of Calcasieu Parish, Louisiana (the “Issuer”), did on May 7, 2002, meet in open session and canvass the returns of said election and did declare said election to have resulted in favor of said proposition; and
WHEREAS, the Governing Authority now deems it in the public interest to authorize the issuance and delivery of $10,000,000 General Obligation Public School Improvement Bonds of School District No. 33 of Calcasieu Parish, Louisiana, 2002 Series;
WHEREAS, the Governing Authority deems it to be in the public interest that it accept the lowest and best bid received for the purchase of the Bonds reflected above, together with the good faith check which accompanies such bid;
WHEREAS, pursuant to Notice of Sale duly published, the Bonds have been sold to Salomon Smith Barney Inc., of Dallas, Texas, at the price of not less than par and accrued interest to date of delivery, the bid of said purchaser being in full as follows:
We offer to purchase TEN MILLION AND NO/100 ($10,000,000) DOLLARS General Obligation Public School Improvement Bonds of School District No. 33 of Calcasieu Parish, Louisiana, 2002 Series, in the initial denominations of one Bond for each maturity, with transfers in multiples of $5,000.00, bearing interest payable semi-annually on January 15 and July 15 of each year, beginning January 15, 2003, maturing serially, WITH OPTION OF PRIOR PAYMENT, all in accordance with the Notice of Bond Sale and Official Statement, all the terms and conditions of which by reference are made a part hereof, and bearing interest at rates as follows, viz:
MATURITY PRINCIPAL INTEREST MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE PER DATE AMOUNT RATE PER
(July 15) ANNUM (July 15) ANNUM
2003 300,000.00 6.000% 2013 490,000.00 4.250%
2004 320,000.00 6.000% 2014 520,000.00 4.375%
2005 335,000.00 5.500% 2015 540,000.00 4.500%
2006 350,000.00 5.500% 2016 570,000.00 4.500%
2007 365,000.00 5.000% 2017 600,000.00 4.325%
2008 385,000.00 5.000% 2018 630,000.00 4.750%
2009 405,000.00 4.875% 2019 660,000.00 4.750%
2010 430,000.00 4.000% 2020 695,000.00 4.875%
2011 445,000.00 4.000% 2021 725,000.00 5.000%
2012 470,000.00 4.125% 2022 765,000.00 5.000%
We will pay the principal sum of TEN MILLION AND NO/100 ($10,000,000) DOLLARS, together with accrued interest from the date of the Bonds to the date of delivery, plus a premium in the amount of $ -0- .
For your information, we calculate the lowest effective interest rate to School District No. 33 to be 4.697681 %, said rate to be determined in accordance with the “True” or “Canadian” interest cost method of calculation by doubling the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the price bid, excluding the accrued interest from the date of the Bonds to the date of their delivery.
Bonds bid for herein will be delivered and shall be paid for on or about July 24, 2002 at such place in Louisiana, and on such business day and at such hour, as the Issuer shall fix on five business days’ notice to the successful bidder, or at such other place and time as may be agreed upon with the successful bidder, it being understood that School District No. 33 will furnish to us, free of charge, at the time of delivery of the Bonds, the qualified approving legal opinion of Joseph A. Delafield, Attorney at Law, of Lake Charles, Louisiana, and a certified transcript of this proceeding.
In accordance with the Notice of Bond Sale, we enclose herewith (certified) (cashier's) check(s) number(s) 0238793 drawn on Bank of America of San Antonio, TX , in the amount of TWO HUNDRED THOUSAND AND NO/100 ($200,000.00) DOLLARS, which is tendered as evidence of our good faith in accordance with and under the provisions of the Official Statement and of the Notice of Bond Sale. Said check shall be returned to the undersigned upon award of the Bonds, provided this proposal is not accepted; otherwise, to be retained uncashed by School District No. 33 of Calcasieu Parish, Louisiana, and returned upon delivery of the Bonds and payment therefor, or to be cashed and forfeited as and for full liquidated damages in case of the failure of the undersigned to make such payment.
We acknowledge and understand the Bonds are not designated as “qualified tax-exempt obligations” pursuant to Section 265(b)(3)(B) of the Internal Revenue Code of 1986.
This bid complies with the terms stipulated in the aforesaid Notice of Bond Sale, the receipt of which Notice of Bond Sale is hereby acknowledged.
NOW THEREFORE, BE IT RESOLVED by the Calcasieu Parish School Board, governing authority of School District No. 33 of Calcasieu Parish, Louisiana, as follows:
SECTION 1. Definitions. As used herein the following terms shall have the following meanings, unless the context otherwise requires:
“Agreement” means the agreement to be entered into between the Issuer and the Paying Agent pursuant to this Resolution.
“Bond” means any 2002 Series Bonds of the Issuer authorized to be issued by this Resolution, whether initially delivered or issued in exchange for, upon transfer of, or in lieu of any bond previously issued.
“Bond Register” means the record kept by the Paying Agent at its principal corporate office in which registration of the Bonds and transfers of the Bonds shall be made as provided herein.
“Bonds” means the General Obligation Public School Improvement Bonds, 2002 Series of the Issuer, authorized by this Resolution, in the total aggregate principal amount of Ten Million Dollars ($10,000,000).
“Business Day” means a day of the year other than a day on which banks in the city in which the Paying Agent is located are required or authorized to remain closed or the New York Stock Exchange is closed.
“Code” means the Internal Revenue Code of 1986, as amended.
“Debt Service Fund” shall have the meaning ascribed to such term in Section 10 hereof.
“Defeasance Obligations” shall mean (a) cash, or (b) non-callable Government Securities.
“Executive Officers” means, collectively, the President and Secretary of the Governing Authority.
“Governing Authority” means the Calcasieu Parish School Board.
“Government Securities” means direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, which are non-callable prior to their maturity, and may be United States Treasury obligations such as the State and Local Government Series and may be in book-entry form.
“Interest Payment Dates” means January 15 and July 15 of each year beginning January 15, 2003.
“Issuer” means School District No. 33 of Calcasieu Parish, Louisiana.
“Outstanding” when used with respect to the Bonds means, as of the date of determination, all Bonds theretofore issued and delivered under this Resolution, except:
1. Bonds theretofore cancelled by the Paying Agent or delivered to the Paying Agent for cancellation.
2. Bonds for which payment or redemption sufficient funds have been theretofore deposited in trust for the Owners of such Bonds, provided that, if such Bonds are to be redeemed, irrevocable notice of such redemption has been duly given or provided for pursuant to this Resolution or waived.
3. Bonds in exchange for or in lieu of which other bonds have been registered and delivered pursuant to this Resolution.
4. Bonds alleged to have ben mutilated, destroyed, lost, or stolen, which have been paid as provided in this Resolution or by law.
5. Bonds for the payment of principal (or redemption price, if any) of and interest on which money or Government Securities or both are held in trust with the effect specified in this Resolution.
“Owner” or “Owners” or “Registered Owner” when used with respect to any Bond means the Person in whose name such Bond is registered in the Bond Register, as herein provided.
“Paying Agent” means Argent Trust Company, a Division of National Independent Trust Company, in Ruston, Louisiana, until a successor Paying Agent shall have been appointed pursuant to the applicable provisions of this Resolution, and thereafter “Paying Agent” shall mean such successor Paying Agent.
“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof.
“Purchaser” means the original purchaser or purchasers of the Bonds.
“Record Date” for the interest payable on any Interest Payment Date means the first calendar day of the month in which an Interest Payment Date is due, whether or not such day is a Business Day.
“Resolution” means this Resolution authorizing issuance of the Bonds.
SECTION 2. Authorization of Bonds; Maturities. In compliance with and under the authority of the provisions of Article VI, Section 33 and Article VII, Section 26(E) of the Constitution of the State of Louisiana of 1974, as amended, and those portions of Part II of Article 7 of the Constitution of 1974 of the State of Louisiana not repealed by the 1977 Louisiana Legislature, and Sub-Part A, Part III, Chapter 4, Sub-Title II of Title 39 of the Louisiana Revised Statutes of 1950, as amended, and constitutional and statutory authority supplemental thereto, and pursuant to proceedings regularly and legally taken by the Issuer, and a special election held within the Issuer on May 4, 2002, there is hereby authorized the incurring of an indebtedness of Ten Million Dollars ($10,000,000) for, and on behalf of and in the name of the Issuer, for the purpose of acquiring and/or improving school buildings and other school related facilities within and for the Issuer, and acquiring the necessary equipment and furnishings therefor, a work of public improvement, title to which school improvements shall be in the public, and to pay the cost of issuance of the Bonds, and to represent said indebtedness this Governing Authority does hereby authorize issuance of Ten Million Dollars ($10,000,000) of General Obligation Public School Improvement Bonds, 2002 Series, of the Issuer. The Bonds shall be in fully registered form, shall be dated July 15, 2002, shall be issued in the denomination of Five Thousand Dollars ($5,000) each, or any integral multiple thereof within a single maturity, and shall be numbered consecutively from R-1 upward and shall mature in the years and in the principal amounts set out in the following schedule. The unpaid principal of the Bonds shall bear interest from date thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for, payable on each Interest Payment Date, commencing January 15, 2003, at rates of interest of not to exceed 9% per annum, as determined by receipt of sealed bids pursuant to advertisement, and maturing in the principal amounts as set out in the following schedule:
MATURITY PRINCIPAL INTEREST MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE PER DATE AMOUNT RATE PER
(July 15) ANNUM (July 15) ANNUM
2003 300,000 6.000% 2013 490,000 4.250%
2004 320,000 6.000% 2014 520,000 4.375%
2005 335,000 5.500% 2015 540,000 4.500%
2006 350,000 5.500% 2016 570,000 4.500%
2007 365,000 5.000% 2017 600,000 4.625%
2008 385,000 5.000% 2018 630,000 4.750%
2009 405,000 4.875% 2019 660,000 4.750%
2010 430,000 4.000% 2020 695,000 4.875%
2011 445,000 4.000% 2021 725,000 5.000%
2012 470,000 4.125% 2022 765,000 5.000%
The principal of the Bonds, upon maturity or redemption, shall be payable at the principal corporate trust office of the Paying Agent, upon presentation and surrender thereof, and interest on the Bonds shall be payable by check mailed by the Paying Agent to the Registered Owner at the address shown on the Bond Register. The person in whose name any Bond is registered at the close of business on the Record Date with respect to an Interest Payment Date (unless such Bond has been called for redemption on a redemption date which is prior to such Interest Payment Date) shall be entitled to receive the interest payable with respect to such Interest Payment Date notwithstanding the cancellation of such Bond upon any registration of transfer or exchange thereof subsequent to such Record Date and prior to such Interest Payment Date. Each Bond delivered under this Resolution upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond, and each such Bond will bear interest (as herein set forth) so that neither gain nor loss interest shall result from such transfer, exchange or substitution.
No Bond will be entitled to any right or benefit under this Resolution, or be valid or obligatory for any purpose, unless there appears on such Bond a certificate of registration, substantially in the form provided in this Resolution, executed by the Paying Agent by manual signature.
SECTION 3. Redemption Provisions. Those Bonds maturing in the years 2003 to 2007, inclusive, shall not be subject to redemption prior to maturity. Those Bonds maturing July 15, 2008 and thereafter shall be callable for redemption by the Issuer in full at any time on or after July 15, 2007, or in part in the inverse order of their maturities, and if less than a full maturity then by lot within such maturity, on any Interest Payment Date on or after July 15, 2007, at the principal amount thereof, plus accrued interest from the most recent Interest Payment Date to which interest has been paid or duly provided for to the date fixed for redemption.
In the event a Bond to be redeemed is of a principal amount denomination larger than $5,000, a portion of such Bond ($5,000 principal amount or any multiple thereof) may be redeemed. Any Bond which is to be redeemed only in part shall be surrendered at the principal corporate office of the Paying Agent and there shall be delivered to the Owner of such Bond a new Bond or Bonds of the same maturity and of any authorized denomination or denominations as requested by such Owner in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal amount of the Bond so surrendered. Official notice of such call of any of the Bonds for redemption will be given by means of first class mail, postage prepaid, by notice deposited in the United States mail not less than thirty (30) days prior to the redemption date, addressed to the Owner of each Bond to be redeemed as shown on the Bond Register.
SECTION 4. Exchange of Bonds; Persons Treated as Owners. The Issuer shall cause books for registration and for transfer of the Bonds (the “Bond Register”), as provided in this Resolution to be kept at the principal office of the Paying Agent, and the Paying Agent is hereby constituted and appointed the Registrar for the Bonds. The Bonds may be transferred, registered and assigned, at the expense of the Issuer, only upon the Bond Register upon surrender thereof at the principal office of the Paying Agent and by execution of the assignment form on the Bonds or by other instrument of transfer and assignment in such form as shall be satisfactory to the Paying Agent. A new Bond or Bonds will be delivered by the Paying Agent to the last assignee (the new registered owner) in exchange for such transferred and assigned Bonds within three (3) business days after receipt of the Bonds to be transferred in proper form. Such new Bond or Bonds must be in the principal amount denomination of $5,000 or any integral multiple thereof within a single maturity. Neither the Issuer nor the Paying Agent will be required to issue, register the transfer of or exchange any Bond during a period beginning (i) at the opening of business on the Record Date, or (ii) with respect to any Bond called for redemption prior to maturity during a period beginning at the opening of business fifteen (15) days before the date of mailing of a notice of redemption of such Bond and ending on the date of such redemption. The execution by the Issuer of any fully registered Bond shall constitute full and due authorization of such Bond and the Paying Agent shall thereby be authorized to authenticate, date and deliver such Bond; provided, however, that the principal amount of outstanding Bonds of each maturity authenticated by the Paying Agent shall not exceed the authorized principal amount of Bonds for such maturity less previous retirements, subject to the provisions of Section 18 hereof. The Issuer is authorized to prepare, and the Paying Agent shall keep custody of, multiple Bond blanks executed by the Issuer for use in the transfer and exchange of Bonds.
SECTION 5. Registered Owner. As to any Bond, the Person in whose name the same shall be registered as shown on the Bond Register required by Section 4, shall be deemed and regarded as the absolute Owner thereof for all purposes, and payment of or on account of the principal of and premium, if any, and interest on any such Bond shall be made only to or upon the order of the Registered Owner thereof or his legal representative, and the Issuer and the Paying Agent shall not be affected by any notice to the contrary. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid.
SECTION 6. Form of Bonds. The Bonds and the endorsements to appear thereon will be in substantially the following form, to-wit:
(FACE OF BOND)
UNITED STATES OF AMERICA STATE OF LOUISIANA
PARISH OF CALCASIEU
REGISTERED REGISTERED
NO. R-____________ $____________
GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BOND OF
SCHOOL DISTRICT NO. 33 OF
CALCASIEU PARISH, LOUISIANA
2002 SERIES
DATED DATE INTEREST RATE: MATURITY DATE: CUSIP:
July 15, 2002
School District No. 33 of Calcasieu Parish, Louisiana (herein called the “Issuer”), for value received, hereby acknowledges itself indebted and promises to pay to
REGISTERED OWNER:
PRINCIPAL AMOUNT
(Lower Left)
OFFICE OF SECRETARY OF STATE
STATE OF LOUISIANA
BATON ROUGE, LOUISIANA
This Bond secured by a tax. Registered
on the ______ day of July, 2002.
____________________________
SECRETARY OF STATE
PAYING AGENT/REGISTRAR’S
CERTIFICATE OF REGISTRATION
This Bond is one of the Bonds referred
to in the within mentioned Bond Resolution.
Argent Trust Company, a Division of
National Independent Trust Company
in the City of Ruston, Louisiana,
as Paying Agent/Registrar
By:___________________________
Date of Authentication:
(Lower Right)
or registered assigns, on the maturity date set forth above, the principal amount set forth above, together with interest thereon from the date hereof, said interest payable semi-annually on January 15 and July 15 in each year, beginning January 15, 2003, at the interest rate per annum set forth above until said principal sum is paid, unless this Bond has been previously called for redemption and payment shall have been duly made or provided for. The principal of this Bond upon maturity or redemption is payable in lawful money of the United States of America at the principal corporate trust office of Argent Trust Company, a Division of National Independent Trust Company located in the City of Ruston, Louisiana (the Paying Agent/Registrar), or successor thereto, upon presentation and surrender hereof. Interest on this Bond is payable by check mailed on each interest payment date by the Paying Agent/Registrar to the registered owner (determined as of the first calendar day of the month in which an interest payment is due) at the address, as shown on the books of the Paying Agent/Registrar.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF WHICH SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Resolution defined hereinafter until the Certificate of Registration hereon shall have been signed by the Paying Agent/Registrar.
IN WITNESS WHEREOF, the Calcasieu Parish School Board, acting as the governing authority of School District No. 33 of Calcasieu Parish, Louisiana, has caused this Bond to be executed in its name by the facsimile signatures of its President and Secretary and the impress or imprint hereon of the seal of said School Board, and this Bond to be dated July 15, 2002.
CALCASIEU PARISH SCHOOL BOARD
/s/ [facsimile] /s/ [facsimile]
SECRETARY PRESIDENT
(REVERSE OF BOND)
ADDITIONAL PROVISIONS
This Bond is one of an issue, the Bonds of which are all of like date, tenor and effect, except as to the number, maturity and rate of interest, aggregating in principal the sum of TEN MILLION AND NO/100 ($10,000,000) DOLLARS; said Bonds to mature annually, issued pursuant to a resolution adopted on June 4, 2002, by the Issuer (the “Bond Resolution”), under and by virtue of Article 6, Section 33 and Article 7, Section 26(E) of the Constitution of 1974 of the State of Louisiana, and those portions of Part II of Article 7 of the Constitution of 1974 of the State of Louisiana not repealed by the 1977 Louisiana Legislature, and Subpart A of Part III of Chapter 4 of Sub-Title II of Title 39 of the Louisiana Revised Statutes o