Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: John C. Beiers, County Counsel
Subject: Issuance and Sale by the Las Lomitas Elementary School District of its Election of 2018 General Obligation Bonds, Series A
RECOMMENDATION:
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Adopt a resolution authorizing the Las Lomitas Elementary School District to issue and sell its Election of 2018 General Obligation Bonds, Series A in an aggregate principal amount not to exceed $30,000,000 by negotiated sale, without further action of the County.
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BACKGROUND:
The voters in the Las Lomitas Elementary School District (“District”) approved by more than fifty-five percent of the voters a school bond measure on June 5, 2018, authorizing the issuance of general obligation bonds in the maximum aggregate principal amount of up to $70,000,000 (the “Bond Measure”). To date, the District has not yet issued any bonds pursuant to the Bond Measure.
On August 30, 2018, the Board of Trustees of the District, a school district under the jurisdiction of the Superintendent of Schools of the County of San Mateo, adopted a resolution (the “District Resolution”) providing for the issuance and sale of its “Las Lomitas Elementary School District (San Mateo County, California) Election of 2018 General Obligation Bonds, Series A,” in an aggregate principal amount not to exceed $30,000,000 (the “Series A Bonds”). The District now desires to issue and sell the Series A Bonds on its own behalf, and District staff has requested that the County Board of Supervisors authorize the District to do so.
DISCUSSION:
State law generally provides that the County may issue and sell general obligation bonds on behalf of a school district, but California 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.
The District is being assisted by Stradling Yocca Carlson & Rauth, a Professional Corporation, as bond counsel, and KNN Public Finance as financial advisor.
Authorizing the District to issue and sell its own bonds will contribute to the Shared Vision 2025 outcome of Collaborative Community by supporting fiscal accountability.
FISCAL IMPACT:
These 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 the bonds.