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October 5, 201 7

Moshe Bender, President

Lakewood Board of Education
Laura A. Winters, Superintendent
Lakewood Public School District
200 Ramsey Avenue
Lakewood, New Jersey 08701

Re: Lakewood BOE Legal Services Contract

Dear Mr. Bender and Ms. Winters:

This office recently received a referral (attached) from the Education Law Center raising
serious questions about the contract engaging Michael Inzelbuch, Esq. to provide legal services
that was approved by the Lakewood Board of Education on June 14,2017. Our initial review of
the documents provided suggests that this contract may not be consistent with Department of
Education regulations.

The contract, which runs from August 17,2017 through June 30, 2018. provides for an
annual retainer of $600,000 to be paid in twelve equal payments, as well as an immediate
payment of $29,000 for Mr. Inzelbuch and his family's medical and prescription coverage.
Under the contract, the Board witl also compensate Mr. Inzelbuch $350.00 per hour for
"litigation services" provided to the district, and will reimburse him for certain expenses such as
filing fees, travel, parking and photocopying. The contract also permits Mr. Inzelbuch to serve as
co-counsel, at $200.00 per hour, in cases where the Board's insurer assigns counsel or the Board
appoints special counsel.

As you are aware, the Department of Education's accountability regulations require

boards of education to establish by policy strategies to minimize the cost of professional
services, including legal services. See N.J.A.C. 6A:23A-5.2. In addition to establishing a
maximum dollar limit for each type of professional service, and imposing other requirements to
ensure the prudent use of legal services, the regulations prohibit "advance payments" lbr legal
services. N.J.A.C. 6A:23 A-5.2(a)(4). Instead, the regulations require that conlracts for legal

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 October 5, 2017
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services describe in detait the services to be provided, and authorize payment only upon
presentation ofan invoice itemizing the services actually provided in the billing period. Ibid.

In tight of the foregoing, please provide this office no later than october 30, 2017 with
the district's position regarding the compliance of the contract with Mr. Inzelbuch with the
',l'hat analysis
Department's accountability regulations, and in particular N.J.A.C. 6A:23A-5.2.
should also include a description of the procurement process undertaken by the Board to award
the legal services contract at issue. Upon receipt of the information, this office will conduct a
thorough review and make appropriate referrals to the Department of Education or other entities,
as may be warranted.

Thank you for your attention to this matter.

Very truly yours,

CHRISTOPHER S. PORRINO
ATTORNEY GENERAL OF NEW JERSEY

By:
Mi leL
Acting Director
Division of Law

Cc: David Sciarra, Esq.

Edward J. Dauber, Esq.