COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

August 23, 2005

BOARD MEETING DATE:

September 13, 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 Sequoia Union High School District of Series 2005B General Obligation Bonds

Recommendation

Adopt a Resolution authorizing the Sequoia Union High School District to issue not to exceed $45,000,000 principal amount of its General Obligation Bonds, Series 2005B, by negotiated sale 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 Sequoia Union High School District will increase the funds available to modernize, improve and expand the District’s classrooms and facilities for school and community use at local high schools.

Background

The voters in the Sequoia Union High School District (“District”) approved, by more than 55% of the vote, a school bond measure on November 2, 2004, in the maximum aggregate principal amount of $70,000,000. $25,000,000 aggregate principal amount of said bonds designated “Sequoia Union High School District General Obligation Bonds, Election of 2004, Series 2005” have heretofore been issued and sold. On July 13, 2005, the District’s Board of Trustees passed its Resolution No. 1306 authorizing the issuance of “Series 2005B Bonds” in the aggregate principal amount not to exceed $45,000,000, and requesting that the County Board of Supervisors authorize the District to issue and sell, by negotiated sale, the Series 2005B Bonds.

Discussion

The Series 2005B General Obligation Bond proceeds are to be used by the District as authorized by the voters of the District at the November 2, 2004 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.