Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: John C. Beiers, County Counsel
Subject: Authorizing school districts and community college districts to issue and sell bonds without further action by the County
RECOMMENDATION:
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Adopt a resolution providing that the governing boards of financially qualifying school districts and community college districts under the jurisdiction of the San Mateo County Superintendent of Schools may issue and sell school bonds on their own behalf pursuant to Education Code ? 15140(b) without further action by the County.
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BACKGROUND:
Education Code ? 15140(b) permits the County Board of Supervisors to adopt a resolution providing that financially qualifying school districts and community college districts under the jurisdiction of the San Mateo County Superintendent of Schools may issue and sell bonds on their own behalf without further action of the County Board of Supervisors.
Section 15140(b) benefits the County and financially qualifying districts because it allows such districts to issue bonds through their own governing boards and to remove the Board of Supervisors as the issuer. Districts save time in their bond issuance process and the County further limits its responsibilities concerning school bonds.
Under ? 15140(a), the County may issue the bonds of school districts and community college districts that are under the jurisdiction of the San Mateo County Superintendent of Schools. The districts may either sell their bonds through a negotiated sale (i.e., the districts select a single underwriter to purchase their bonds) or a competitive sale (i.e., the districts seek competitive bids from underwriters).
Alternatively, districts may issue their bonds independently from the Board of Supervisors by a competitive sale under the terms of Gov't Code ? 53506 et seq., but cannot use that statutory scheme to independently issue bonds for negot...
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