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Meeting Date:
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10/24/2024 - 6:00 PM
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Category:
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General Counsel - Legal - Votes
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Type:
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Action
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Subject:
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16.2 Resolution of the Board of Education of the City of Newark, County of Essex, Approving Settlement and Authorizing Disbursement of Funds pursuant to N.J.S.A. 18A:7F-9.
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Strategic Plans:
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Priority 1.2 1.2 Adopt a sustainable fiscal strategy and operating budget that is aligned with the strategic plan and drives district priorities. Priority 1.1 1.1 Organize and align departments and resources to support district priorities, strategies, and initiatives.
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Enclosure
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File Attachment:
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Summary:
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WHEREAS, pupil transportation providers A&S Invalid Coach a/k/a Omdurman Transit LLC, Azza Care Transport, Basma School Transport Inc., DMD Transportation LLC, EZ Transit Transport Inc., Gelass Transportation, Horizon Link LLC, Jawa Invalid Coach, Madison Invalid Coach, Mass Transit, Mass Transportation Services, Mercy US Transportation, New Star Express Trans. Corp, NW Transport, Peak Hour Transportation and Speedy Mobility Services (collectively the “Transportation Contractors”) were all previously awarded contracts by the Newark Board of Education (“Board”) to transport students during the 2020-21 school year; and
WHEREAS, as a result of the pandemic lockdown during the 2020-21 school year, the Transportation Contractors did not transport Board students or receive payment from the Board under their respective contracts during this time period; and
WHEREAS, N.J.S.A. 18A:7F-9 was amended on April 14, 2020 to require school districts to, among other things, renegotiate contracts in good faith and make compensation payments to contracted service providers as if the services had been provided during this time period, and
WHEREAS, the Transportation Contractors filed a Complaint in the Superior Court of New Jersey, Law Division, Essex County captioned as A&S Invalid Coach et al. v. Newark Board of Education, Docket No. ESX-L-8648-21, seeking payment under N.J.S.A. 18A:7F-9, and
WHEREAS, the parties entered into settlement discussions wherein, in order to resolve all disputed matters, subject to approval by the Board, a compensation payment representing a percentage of the total contract amounts awarded to the Transportation Contractors, or $3,265,786.41, would be disbursed to the Transportation Contractors’ attorney to satisfy the requirements of N.J.S.A. 18A:7F-9 and in exchange for a withdrawal of the suit along with a waiver of all claims, and
WHEREAS, upon recommendation of the School Business Administrator and the Superintendent, the Board finds that the settlement satisfies the requirements of N.J.S.A. 18A:7F-9 and is in the best interests of the Board and the public since it avoids an uncertain conclusion after protracted and costly court proceedings.
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Funding :
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10-11-000-270-514-407-000-000
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Recommendation to the Board:
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NOW THEREFORE, BE IT RESOLVED: The Board hereby approves and authorizes the settlement of A&S Invalid Coach et al. v. Newark Board of Education in accordance with the terms recommended by the School Business Administrator and the Superintendent, including the disbursement of funds, and authorizes the Board President to execute the Settlement Agreement which includes a release of all claims, and directs its implementation.
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Approvals:
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Recommended By:
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Signed By:
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Brenda Liss - General Counsel
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Signed By:
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Quanika Dukes-Spruill - Executive Director of Transportation Services
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Signed By:
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Valerie Wilson - School Business Administrator
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Signed By:
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Roger León - Superintendent
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