Agenda Item
Meeting Date: 5/18/2020 - 5:00 PM
Category: Business/Action Items
Type: Action
Subject: 17.6 Resolution No. 20-38: Authorizing The Issuance And Sale Of Election Of 2018, General Obligation Bonds, Series B In The Principal Amount Of Not To Exceed $100,000,000, And Approving Documents And Official Actions Relating Thereto
LCAP (Local Control Accountability Plan) Goal:
File Attachment:
Res 20-38 - District 2018-SeriesBBonds-FINAL.pdf
4-POS-MVLA-UnionHSD-GOB SerieB-5.8.20.pdf
Summary: The District has facilities needs. Measure E was successful and the District desires to issue it a second series of voter-approved bonds to commence phase two projects. This Resolution authorizes the issuance of up to $100 million principal amount as current interest bonds (no capital appreciation bonds) pursuant to the provisions of the California Government Code, with maturities and interest rates within legal limitations. Appendix A of the Resolution summarizes certain current expectations about the financing, in accordance with SB 450. The Resolution authorizes the investment banking firms of RBC Capital Markets, LLC and Raymond James & Associates, Inc. to underwrite all of the bonds on a negotiated basis under the terms of a Bond Purchase Agreement. The Resolution also authorizes staff to work with the financing team to complete all other related documentation to accomplish the financing within all required legal parameters. The Preliminary Official Statement, which is the disclosure document that will be distributed to potential bond investors, is approved in form in the Resolution. Under securities laws standards, this document must include all material disclosures about the bonds, including the source of repayment (ad valorem property taxes), and other financial information specific to the District. The financing team will continue to work with District staff to ensure the document meets the legal standard of including all material disclosures, and no material misstatements or omissions. Issuance of the Bonds will be in compliance with the District’s BP 3470 – Debt Management. Attachments: Bond Purchase Agreement; Preliminary Official Statement.
Funding: Proceeds of voter-approved bonds will be applied to capital facilities projects. Bonds are repaid with the proceeds of annual ad valorem property taxes, not the District’s general fund. Costs of issuance are payable from bond proceeds.
Recommendation: Adopt Resolution 20-38 Authorizing Issuance of Bonds (majority vote).
Recommended By:
Signed By:
Irene Aguilar - Administrative Assistant
Signed By:
Mike Mathiesen - Associate Superintendent
Signed By:
Nellie Meyer - Superintendent