COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

January 16, 2009

BOARD MEETING DATE:

February 3, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Resolution Authorizing the Issuance and Sale of Millbrae School District Series A General Obligation Bonds

RECOMMENDATION:

Adopt a resolution authorizing the issuance and sale of bonds of the Millbrae School District, prescribing the terms of sale by competitive bid, or in the alternative by negotiated sale, of not to exceed $12,000,000 of said Bonds, approving forms of and authorizing distribution of Official Notice of Sale, Notice of Intention to Sell Bonds and Bond Purchase Contract, delegating to the County Treasurer-Tax Collector authorization to award bid for said Bonds, and authorizing execution of necessary certificates.

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 Millbrae School District will increase the funds available to renovate and modernize the school facilities of, and create a dedicated technology fund for, the Millbrae School District.

BACKGROUND:

The voters in the Millbrae School District (“District”) approved, by more than 55% of the vote, a school bond measure on November 4, 2008, in the maximum aggregate principal amount of $30,000,000. On January 12, 2009, the District’s Board of Trustees passed its Resolution No. 08-09-12 authorizing the issuance of a portion of said bonds to be designated the “Millbrae School District 2009 General Obligation Bonds (Election of 2008, Series A)” (the “Series A Bonds”), in an aggregate principal amount not to exceed $12,000,000, and requesting that the County Board of Supervisors authorize the issuance and sale of the Series A Bonds on their behalf. The District Resolution authorized the negotiated sale of the Series A Bonds if the County Treasurer-Tax Collector, in consultation with the District and its financial advisor determines that market conditions are not favorable to a competitive sale and the District would be more likely to realize savings in interest costs through a negotiated sale.

DISCUSSION:

Education Code Section 15140 provides that bonds of a school district are to be offered for sale by the county board of supervisors following receipt of the school district’s resolution requesting such action. The Millbrae School District has made such a request and this resolution authorizes the County to issue and sell the Series A Bonds for the District, by competitive bidding, or negotiated sale if that will result in a savings for the District, and authorizes the execution and delivery of the necessary certificates and other documents.

The Series A Bond proceeds are to be used by the District as authorized by the voters of the District at the November 4, 2008 election.

The District is being assisted by Orrick, Herrington & Sutcliffe LLP, as bond counsel, and Northcross, Hill & Ach, Inc., as financial advisor.

FISCAL IMPACT:

These bonds are general obligations of the District and do not constitute an obligation of the County.