COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

 

DATE:

January 22, 2010

BOARD MEETING DATE:

February 9, 2009

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 Menlo Park City School District of Series 2010 Bonds

 

RECOMMENDATION:

Adopt a Resolution authorizing the Menlo Park City School District to issue and sell Series 2010 Bonds in an aggregate principal amount not to exceed $22,835,272.15, by negotiated sale, without further action of the County.

 

BACKGROUND:

The voters in the Menlo Park City School District ("District") approved by more than fifty-five percent of the voters a school bond measure on June 6, 2006, in the maximum aggregate principal amount of $91,100,000.00 (the “Bond Measure”). On February 20, 2007, “Menlo Park City School District General Obligation Bonds, Election of 2006, Series 2007” in the aggregate principal amount of $35,000,000.00 were issued by the County on behalf of the District. On July 2, 2008, the District issued on its own behalf, “Menlo Park City School District General Obligation Bonds, Election of 2006, Series 2008” in the aggregate principal amount of $33,264,727.85.

The District's Board of Education has passed a resolution (the “District Resolution”) providing for the issuance and sale of its “Menlo Park City School District General Obligation Bonds, Election of 2006, Series 2010” in an aggregate principal amount not to exceed $22,835,272.15 (the “Series 2010 Bonds”) and requesting that the County Board of Supervisors authorize the District to issue and sell, by negotiated sale, the Series 2010 Bonds.

 

DISCUSSION:

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 the particular series of bonds, and to sell the bonds through a negotiated sale. Education Code Section 15140(b) allows the Board of Supervisors to authorize the District to issue and sell bonds on its own behalf without further action of the Board of Supervisors or officers of the County. The District is seeking such authorization as a result of being advised that it is in the financial interests of the District that the Series 2010 Bonds be issued for greater than 25 years and through a negotiated sale. Accordingly, the District has been further advised that the Series 2010 Bonds should be issued and sold directly by the District, pursuant to Sections 53506 et seq. of the Government Code as well as section 15140(b) of the Education Code

The District has appointed De La Rosa & Co., as Financial Advisor to the District; and Orrick, Herrington & Sutcliffe llp as Bond Counsel and Disclosure Counsel to the District with respect to the Series 2010 Bonds.

 

Authorizing the Menlo Park City School District to issue and sell its own bonds will contribute to the Shared Vision 2025 outcome of collaborative community by supporting fiscal accountability.

 

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.