Orange Board of Education approves ESSIP resolutions, will seek refunding bonds for facility upgrades

Vice President Shawneque Johnson presided over the Orange Board of Education’s public meeting on Aug. 20, 2024, where the board voted to approve ESSIP-related resolutions I9–I15 and authorized staff to apply to the Local Finance Board to seek refunding bond financing.

Jason Ballard, the district’s school business administrator and board secretary, told the board that no Requests for Proposals had been processed for the ESSIP projects and that Honeywell is being used under an existing cooperative purchasing agreement. "No RFPs related to the ESSIP or its contractors have been processed at this time," Ballard said.

The approved resolutions cover capital work the district described as boilers, unit ventilators, HVAC upgrades and a building management system. Ballard said the projects will be financed by using the district’s existing utility line and that, according to outside counsel, the financing would be structured as refunding bonds rather than new general-obligation debt.

Attorney Tony Solimene told the board that refunding bonds do not require a voter approval of the amount bonded under the cited statute. According to the legal explanation provided to the board, the district will apply to the Local Finance Board in Trenton and attend the board’s hearing; a hearing date mentioned for the application was Sept. 11. "These do not require voter approval for the amount being bonded, as stipulated under statute N.J.S.A. 18A:24-61.1," Solimene said during the discussion.

Board member Tyrone Tarver asked for copies of RFPs and alternative proposals and said he had contacted the business administrator for more information. Ballard replied that Honeywell was selected through a cooperative agreement and that no competitive RFPs for the projects had been completed. Board member Sueann Gravesande emphasized that boilers would carry a one-year warranty and said staff had indicated extended-warranty options were being pursued. Ballard said extended warranties can be purchased (commonly three to five years, with some manufacturers offering up to 10 years) and that routine maintenance can be provided through an annual service agreement with Honeywell, while replacement of LED fixtures would follow the district’s standard replacement procedures.

When the roll was called on items I9–I15, the tally recorded eight yea votes, zero nay votes and one abstention. The meeting adjourned after a separate unanimous roll call on the motion to adjourn.

The board’s approval moves the funding process to a second reading and to the Local Finance Board application stage; final financing will depend on the Local Finance Board’s review and approval and any subsequent procedural steps required under state law.