COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

March 15, 2005

BOARD MEETING DATE:

March 29, 2005

SPECIAL NOTICE/HEARING

None

VOTE REQUIRED

Majority

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Resolution Authorizing the Issuance and Negotiated Sale by the San Carlos School District of Series 2005 General Obligation Bonds

Recommendation

Adopt a Resolution authorizing the San Carlos School District to issue Series 2005 General Obligation Bonds without further action of the County.

Vision Alignment

Commitment: Sow the seeds of our future prosperity.

Goal 19: The skill level of new workers rises with improved K-12 education and training options.

The issuance and sale of General Obligation Bonds by the San Carlos School District will increase the funds available to improve the facilities used in the education of the students within the District.

Performance Measures by the County do not apply in these circumstances.

Background

The voters in the San Carlos School District ("District") approved by more than two-thirds of the voters a school bond measure on June 3, 1997, in the maximum aggregate principal amount of $22,000,000. $21,750,000 aggregate principal amount of said bonds designated "San Carlos School District General Obligation Bonds" have heretofore been issued and sold by the County in three separate series, "Series A", on October 8, 1997, "Series 1999", on October 6, 1999, and "Series 2000", on February 24, 2000. At a special meeting held on March 15, 2005, the District's Board of Trustees passed a resolution authorizing the issuance of Series 2005 Bonds, representing the remaining authorized bonds, in the aggregate principal amount not to exceed $250,000, and requesting that the County Board of Supervisors authorize the District to issue and sell, by negotiated sale, the Series 2005 Bonds. The District is currently in the process of selling its 2005 refunding bonds by negotiated sale to Piper Jaffray & Co., and the Board of Trustees has determined that the only practicable and cost effective means for issuing the remaining authorized general obligation bonds pursuant to its election of June 3, 1997 is by combining the sale of such general obligation bonds with the sale of its 2005 refunding bonds.

Discussion

The Series 2005 General Obligation Bond proceeds are to be used by the District as authorized by the voters of the District at the June 3, 1997 election. Typically, the County issues and sells general obligation bonds on behalf of a school district. For this transaction, the District has requested that the County authorize the District itself to issue this particular series of bonds, and to sell the bonds through a negotiated sale. California Education Code Section 15140(b) allows the Board of Supervisors to authorize the District to sell and issue bonds on its own behalf without further action of the Board of Supervisors or officers of the County.

Fiscal Impact

These bonds are general obligations of the District, and do not constitute an obligation of the County. No part of any fund of the County is pledged or obligated to the payment of the bonds.