Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: John D. Nibbelin, County Attorney
Subject: Issuance of Pacifica School District General Obligation Bonds, Election of 2024, Series 2026
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing the issuance and sale of general obligation bonds, Election of 2024, Series 2026 of Pacifica School District, prescribing the terms of sale of not to exceed $30,000,000 of said bonds by a negotiated sale pursuant to one or more bond purchase agreements; and
B) Approving the form of and authorizing the execution and delivery of said bond purchase agreements; and
C) Approving the forms of one or more paying agent agreements, and authorizing the execution of necessary documents and certificates relating to said bonds.
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BACKGROUND:
On March 5, 2024, the voters in the Pacifica School District (the “District”) approved by more than fifty-five percent of the votes cast a school bond measure, authorizing the issuance of general obligation bonds in the maximum aggregate principal amount of $70,000,000 (the “Bond Measure”). To date, the District has issued $10,000,000 in bonds pursuant to the Bond Measure.
On March 11, 2026, the Governing Board of the District adopted a resolution requesting that this Board issue a portion of said bonds, designated the “Pacifica School District General Obligation Bonds, Election of 2024, Series 2026” (the “2026 Bonds”), with such additional or other series or subseries designations as may be approved in an aggregate principal amount not exceeding $30,000,000, and to authorize the sale of the 2026 Bonds by a negotiated sale to RBC Capital Markets, LLC (the “Underwriter”), pursuant to one or more Bond Purchase Agreements (each, a “Bond Purchase Agreement”), a form of which has been submitted to and is on file with the Clerk of this Board. A copy of the District’s resolution is submitted with this memorandum.
Also included with this memorandum are copies of the proposed form of Bond Purchase Agreement and proposed form of Paying Agent Agreement.
DISCUSSION:
State law generally provides that the County may issue and sell general obligation bonds on behalf of a school district. Government Code § 53506 et. seq. and Education Code § 15140(b) also allow the Board of Supervisors to authorize the District to sell and issue bonds directly on its own behalf without further action of the Board of Supervisors or officers of the County, if certain statutory conditions are met. This Board adopted such a resolution on June 23, 2020. (Resolution No. 077485).
The District received a qualified certification within the meaning of Education Code §42133 in its second interim report which would foreclose the District’s direct issuance of the 2026 Bonds on its own behalf.
The District has requested that the County issue the 2026 Bonds pursuant to Government Code § 15140(a). Education Code § 15140(a) provides, in pertinent part, that: “Bonds of a school district or community college district shall be offered for sale by the board of supervisors of the county, the county superintendent of which has jurisdiction over the district, or the community college district governing board, where appropriate, as soon as possible following receipt of a resolution duly adopted by the governing board of the school district or community college district.”
The District is being assisted by the Orrick law firm as bond and disclosure counsel and Isom Advisors as financial advisor.
The County Attorney has reviewed the proposed Board resolution as to form.
COMMUNITY IMPACT:
In accordance with the Bond Measure, the issuance and sale of the bonds will generate proceeds to modernize outdated elementary schools with updated classrooms and science labs; construct local affordable workforce rental housing for teachers and staff; replace aging portables, heating/cooling systems; and ensure access for students with disabilities. These uses will have a positive impact on the students and families of the District.
FISCAL IMPACT:
The 2026 Bonds are general obligations of the District, and do not constitute an obligation of the County. No County funds are pledged or obligated to the payment of these bonds.