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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Counsel
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DATE:
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March 29, 2010
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BOARD MEETING DATE:
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April 13, 2010
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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County Counsel
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SUBJECT:
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Resolution Authorizing the Issuance and Sale of Burlingame Elementary School District, Series B, General Obligation Bonds
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RECOMMENDATION:
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Adopt a resolution authorizing the issuance and competitive sale of Burlingame Elementary School District (San Mateo County, California) Election of 2007 General Obligation Bonds, Series B, in an aggregate principal amount not to exceed $17,200,000.
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BACKGROUND:
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The voters in the Burlingame Elementary School District (“District”) approved, by more than 55% of the vote, a school bond measure on November 6, 2007, in the maximum aggregate principal amount of $48,300,000 (the “Bond Measure”). On April 17, 2008, the County issued on behalf of the District the first series of bonds under the Bond Measure in the aggregate principal amount of $18,300,000 (the “Series A Bonds”).
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By Resolution No. 2009/2010-11, adopted on March 9, 2010, the District’s Board of Trustees authorized the issuance of a second series of said bonds as approved by the Bond Measure, to be designated the “Burlingame Elementary School District (San Mateo County, California) Election of 2007 General Obligation Bonds, Series B” (hereinafter the “Series B Bonds”), in an aggregate principal amount not to exceed $17,200,000, and requested that the County Board of Supervisors authorize the issuance and competitive sale of the Series B Bonds on their behalf.
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A portion of the Series B Bonds may be issued as “Build America Bonds” pursuant to the American Reinvestment and Recovery Act of 2009. With respect to any of the Series B Bonds issued as Build America Bonds, the District expects to receive a cash subsidy payment from the United States Department of the Treasury equal to 35% of the interest payable on the Bonds on or about each Bond Payment Date.
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DISCUSSION:
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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 Burlingame Elementary School District has made such a request and this resolution authorizes the County to issue and sell, by competitive public bidding, the Series B Bonds for the District, and authorizes County officials to execute the necessary documents.
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The Series B Bond proceeds are to be used by the District as authorized by the voters pursuant to the Bond Measure.
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The District is being assisted by Stradling Yocca Carlson & Rauth, a Professional Corporation, as Bond Counsel and Disclosure Counsel, and Backstrom, McCarley, Berry & Co., LLC, as Financial Advisor.
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Authorizing the issuance and sale of the Series B Bonds will contribute to the Shared Vision 2025 outcome of collaborative community by supporting fiscal accountability.
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FISCAL IMPACT:
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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.
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