COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

May 21, 2009

BOARD MEETING DATE:

June 9, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Resolution Authorizing the Issuance and Sale of Sequoia Union High School District Series B General Obligation Bonds

RECOMMENDATION:

Adopt a resolution authorizing the issuance and sale of bonds of the Sequoia Union High School District, prescribing the terms of sale by competitive bid of not to exceed $45,000,000 of said bonds, approving forms and authorizing distribution of an official notice of sale and a notice of intention to sell bonds, 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 Sequoia Union High School District will increase the funds available to improve, expand, modernize and construct classrooms and facilities throughout the school district.

BACKGROUND:

The voters in the Sequoia Union High School District (“District”) approved, by more than 55% of the vote, a school bond measure on February 5, 2008, in the maximum aggregate principal amount of $165,000,000. $74,000,000 aggregate principal amount of said bonds designated “Sequoia Union High School District 2008 General Obligation Bonds (Election of 2008, Series A)” have heretofore been issued. By Resolution No. 1394, adopted on May 6, 2009, the District’s Board of Trustees authorized the issuance of a second series of said bonds as approved by the February 5, 2008 election, to be designated the “Sequoia Union High School District 2009 General Obligation Bonds (Election of 2008, Series B)” (hereinafter the “Series B Bonds”), in an aggregate principal amount not to exceed $45,000,000, and requested that the County Board of Supervisors authorize the issuance and competitive public sale of the Series B Bonds on their behalf.

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 Sequoia Union High School District has made such a request and this resolution authorizes the County to issue and sell, by competitive bidding, the Series B Bonds for the District, and authorizes certain County officials and their deputies and designees, to execute the necessary documents.

The Series B Bond proceeds are to be used by the District as authorized by the voters of the District at the February 5, 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. No part of any fund of the County is pledged or obligated to the payment of the bonds.