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Meeting Date:
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4/23/2025 - 6:00 PM
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Category:
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Recognitions and Resolutions
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Type:
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Action
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Subject:
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10.9 Review and Potential Approval of Resolution No. 24/25 (68) Authorizing the issuance and sale of general obligation bonds, 2018 Election, Series C, in the principal amount of not to exceed $55,000,000; authorizing the execution and delivery of an official statement and bond purchase agreement; and approving related documents and official actions relating thereto
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LCAP (Local Control Accountability Plan) Goal:
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Goal 1: All students will receive a high quality education in a safe and welcoming environment with high expectations and rigorous instruction in the California State Standards that prepare them for college and career. Goal 2: Highly qualified, culturally proficient, and responsive staff will create learning environment respectful of all students' backgrounds ensuring they are college and career ready when they graduate. Goal 3: Families and community will be informed and empowered as partners with Mt. Diablo Unified to support student learning and improve student outcomes.
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Enclosure
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Board Presentation: Bond Refunding & New Bond Issuance
Preliminary Official Statement
Bond Purchase Agreement
Resolution 24/25-68
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File Attachment:
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Summary:
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District voters approved Measure J at the November 6, 2018 Election, authorizing the District to issue up to $150 million in General Obligation Bonds to finance school facility improvements, which Bonds are repaid by property tax levies and collections on taxable properties. The Resolution proposes authorizing the third and final series of Measure J bonds in the total principal amount of $55 million. The Bonds are proposed to be issued as traditional, tax-exempt current interest Bonds pursuant to the terms of the California Government Code. Capital appreciation bonds are not authorized. The Resolution authorizes the sale of the bonds by negotiation to the underwriting firm of Stifel, Nicolaus & Company, Incorporated, which will buy all of the bonds from the District and thereafter have the responsibility of placing the bonds with separate investors. The terms of the sale will be documented in the Bond Purchase Agreement, which is approved as to form in the Resolution. The resolution authorizes District officials to finalize other items relating to the issuance of the Bonds. This includes the Preliminary Official Statement (the “POS”), which is the document that will be used to provide disclosure to potential investors regarding the repayment terms and security features of the bonds (ad valorem property tax collections) and other matters meeting industry standards regarding investor disclosures. The District’s obligation under federal securities laws is to ensure that the POS contains all material information for making an investment and does not contain any material misstatements or omissions. District staff is authorized in the Resolution to work with the financing team following approval to ensure the POS is complete and accurate before it is circulated to bond investors. It is currently expected that the Bonds will be issued and funds available to the District in late May 2025.
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Funding:
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Fiscal Impact
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GO Bonds are repaid by voter-approved property tax collections. Proceeds will provide funding for voter-approved projects. Issuance costs will be paid from the proceeds of the bonds.
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Recommendation:
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Motion to Approve Resolution authorizing issuance of General Obligation Bonds, 2018 Election, Series C in the Principal Amount of Not To Exceed $55,000,000.
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Approvals:
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Recommended By:
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Signed By:
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Adrian Vargas - Chief Business Officer
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Signed By:
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Gustavo Aguilera - Executive Director, Fiscal
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Signed By:
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Dr. Adam Clark - Superintendent
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Vote Results:
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| Original Motion | | Member Keisha Nzewi Moved, Member Thomas McDougall seconded to approve the Original motion 'Motion to Approve Resolution authorizing issuance of General Obligation Bonds, 2018 Election, Series C in the Principal Amount of Not To Exceed $55,000,000.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 5 Nay: 0. | | The motion Carried 5 - 0 | | | | | Linda Mayo | Yes | | Debra Mason | Yes | | Cherise Khaund | Yes | | Keisha Nzewi | Yes | | Thomas McDougall | Yes | |
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