COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

December 26, 2006

BOARD MEETING DATE:

January 9, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Resolution Authorizing the Issuance and Sale by the Woodside Elementary School District, on its own behalf, of Series 2007 Bonds

RECOMMENDATION:

Adopt a resolution authorizing the issuance and sale by the Woodside Elementary School District, on its own behalf, of Woodside Elementary School District Election of 2005, Series 2007, General Obligation Bonds, in an aggregate principal amount not to exceed $2,500,000, by competitive sale, or negotiated sale if no timely and qualified bids are received, and authorizing execution of the necessary documents.

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 Woodside Elementary School District will increase the funds available to improve, renovate and modernize the Woodside School.

BACKGROUND:

The voters in the Woodside Elementary School District (“District”) approved, by more than 55% of the vote, a school bond measure on November 8, 2005, in the maximum aggregate principal amount of $12,000,000. Pursuant to this Board’s Resolution No. 067807, passed on February 7, 2006, the County issued and sold in the name of the District an initial series of bonds, known as the “Series 2006 Bonds”, in the aggregate principal amount of $9,499,998.55.

By its Resolution No. 478, dated December 12, 2006, a certified copy of which has been filed with the Clerk of this Board, the District Board is requesting to issue and sell, on its own behalf, an additional series of the Bonds to be designated the “Woodside Elementary School District General Obligation Bonds, Election of 2005, Series 2007 Bonds (the “Series 2007 Bonds”) in an aggregate principal amount not to exceed $2,500,000.

DISCUSSION:

The California Government Code permits the District to issue and sell general obligation bonds on its own behalf, without County involvement, but only if the bonds are sold by a competitive bidding process. However, if the bonds are to be sold through a negotiated sale, the Government Code requires that certain provisions of the California Education Code must be satisfied. Those Education Code provisions require that, for the District to sell its own bonds, the Board of Supervisors must act by resolution authorizing the District to do so, without further action of the Board of Supervisors or officers of the County. For the Series 2007 Bonds, the District intends to first attempt to sell the Bonds through a competitive sale. If however, no timely bids conforming to the specifications set forth in the District Resolution and the Official Notice of Sale are received through the competitive process, the District desires to use a negotiated sale process. Education Code Section 15148 permits the Board to approve a negotiated sale of bonds if the competitive process does not meet with success.

This resolution authorizes the District to issue and sell, on its own behalf, by negotiated sale if necessary, the Series 2007 Bonds. The County Treasurer-Tax Collector who will serve as the paying agent for the Series 2007 Bonds, does not object to the proposed alternative process.

The Series 2007 Bond proceeds are to be used by the District as authorized by the voters of the District at the November 8, 2005, election. The District is being assisted by Orrick Herrington & Sutcliffe as bond counsel and Piper Jaffray & Co. as financial advisor.

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.