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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Counsel
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DATE:
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January 31, 2011
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BOARD MEETING DATE:
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February 15, 2011
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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 C, General Obligation Bonds
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RECOMMENDATION:
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Adopt a resolution authorizing the issuance and negotiated sale of Burlingame Elementary School District (San Mateo County, California) Election of 2007 General Obligation Bonds, Series C, in an aggregate principal amount not to exceed $12,800,000.
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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”). On May 19 , 2010, the County issued on behalf of the District the second series of bonds under the Bond Measure in the aggregate principal amount of $17,200,000 (the “Series B Bonds”).
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The American Reinvestment and Recovery Act of 2009 (“ARRA”) grants a national allocation of $11 billion to provide for the issuance of qualified school construction tax credit bonds (“QSC Bonds”) to provide financing for the construction, reconstruction and repair of public school facilities, in accordance with the qualified tax credit bond program. The District received a District Allocation in the amount of $9,212,220 allocated by the California Department of Education on January 14, 2011. The Hiring Incentives to Restore Employment Act (the “HIRE Act”) implemented certain tax code changes that permit the issuance of QSC Bonds in the form of taxable interest bearing bonds with respect to which the issuer thereof may receive a cash subsidy payment from the United States Treasury on or about each interest payment date for such bonds (“Direct-Payment QSC Bonds”);
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By Resolution adopted by the District’s Board of Trustees, the District has authorized the issuance of a third series of 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 C” (hereinafter the “Series C Bonds”), in an aggregate principal amount not to exceed $12,800,000, and requested that the County Board of Supervisors authorize the issuance and negotiated sale of the Series C Bonds on their behalf. The District has authorized the issuance of all or a portion of the Bonds as Direct-Payment QSC Bonds.
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DISCUSSION:
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California 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 negotiated sale, the Series C Bonds for the District, and authorizes County officials to execute the necessary documents.
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The Series C 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 by Backstrom, McCarley, Berry & Co., LLC, as Financial Advisor.
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Authorizing the issuance and sale of the Series C 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 Series C 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 Series C Bonds.
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