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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Counsel
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DATE:
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March 7, 2011
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BOARD MEETING DATE:
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March 29, 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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Issuance and Sale by the Sequoia Union High School District of 2011 General Obligation Bonds
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RECOMMENDATION:
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Adopt a Resolution authorizing the Sequoia Union High School District to issue and sell its 2011 General Obligation Bonds (Election of 2008) in an aggregate principal amount not to exceed $51,000,000 without further action of the Board of Supervisors or Officers of the County.
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BACKGROUND:
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The voters in the Sequoia Union High School District ("District") approved by more than fifty-five percent of the voters a school bond measure on February 5, 2008, in the maximum aggregate principal amount of $165,000,000 (the “Bond Measure”). On June 12, 2008, the County issued on behalf of the District, “Sequoia Union High School District 2008 General Obligation Bonds (Election of 2008, Series A)” in the aggregate principal amount of $74,000,000 (the “Series A Bonds”). On July 9, 2009, the County issued on behalf of the District, “Sequoia Union High School District 2009 General Obligation Bonds (Election of 2008, Series B)” in the aggregate principal amount of $40,000,000 (the “Series B Bonds”).
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On March 2, 2011, the District's Board of Trustees adopted its Resolution No. 1443 authorizing the issuance and sale of “Sequoia Union High School District 2011 General Obligation Bonds (Election of 2008)” in an aggregate principal amount not to exceed $51,000,000 (the “2011 Bonds”), and requesting that the County Board of Supervisors authorize the District to issue and sell, by negotiated sale, the 2011 Bonds.
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DISCUSSION:
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Typically, the County issues and sells general obligation bonds on behalf of a school district. For this transaction, the District adopted a resolution (the District Resolution”) requesting that the County authorize the District itself to issue the particular series of bonds, and to sell the bonds through a negotiated sale. The District Resolution indicates that the District intends to request proposals for the purchase of the Series B Bonds from at least five reputable underwriting firms, and to select the underwriter at a public meeting. California Government Code sections 53506, et. seq. and Education Code Section 15140(b) allow the Board of Supervisors to authorize the District to sell and issue bonds on its own behalf without further action of the Board of Supervisors or officers of the County.
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The District is being assisted by Orrick, Herrington & Sutcliffe LLP, as bond counsel, and Northcross, Hill & Ach, Inc. as financial advisor.
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Authorizing the Sequoia Union High School District to issue and sell its own 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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