To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Walnut Creek School District - Election of 2022 General Obligation Bonds, Series B
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Resolution No. 2025-75 authorizing the issuance and sale of "Walnut Creek School District, Election of 2022 General Obligation Bonds, Series B" in an amount not to exceed $32,000,000 by the Walnut Creek School District on its own behalf pursuant to Sections 15140 and 15146 of the Education Code, as permitted by Section 53508.7(c) of the Government Code.
FISCAL IMPACT:
There is no fiscal impact to the County.
BACKGROUND:
The Walnut Creek School District intends to issue new General Obligation bonds to fund capital improvements throughout the District. The District has requested that the Board of Supervisors adopt a resolution authorizing the direct issuance and sale of the bonds by the District on its own behalf as authorized by Section 15140(b) of the Education Code.
On March 10, 2025, the District adopted a resolution authorizing the issuance of up to $32,000,000 (attached) for the sale and issuance of new bonds, which was approved by the voters as part of a bond measure (Measure J) listed on the November 8, 2022 ballot. Measure J authorized an aggregate principal bond issuance authority of up to $134,000,000.
The ballot measure cited several capital projects that the District is in need of funding, including the upgrade and modernization of classrooms, restrooms, libraries and other school facilities along with energy efficiency upgrades and health, safety and security improvements to District property.
The District previously issued Series A bonds in the amount of $65,000,000 under the authority of Measure J on May 11, 2023. Combined with the Series B bonds under consideration today, in the amount of $32,000,000, the District would have $37,000,000 of bond authority remaining under Measure J following the issuance of the Series B bonds. The School District would need to return to the Board of Supervisors at a future date to take a similar action to authorize a subsequent bond issuance for the remaining bonding authority.
CONSEQUENCE OF NEGATIVE ACTION:
Without the Contra Costa County Board of Supervisors authorization, the School District would not be able to issue the bonds.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
RESOLUTION OF THE BOARD OF SUPERVISORS OF CONTRA
COSTA COUNTY CONSENTING TO AND AUTHORIZING THE WALNUT CREEK SCHOOL DISTRICT TO ISSUE, ON ITS OWN BEHALF, GENERAL OBLIGATION BONDS AUTHORIZED BY VOTERS ON NOVEMBER 8, 2022
RESOLVED by the Board of Supervisors (the “Board”) of Contra Costa County (the “County”), State of California:
WHEREAS, sections 53506 et seq. of the California Government Code, including section 53508.7 thereof, provide that California public school district may issue and sell bonds on its own behalf at private sale pursuant to sections 15140 or 15146 of the California Education Code;
WHEREAS, section 15140(b) of the California Education Code provides that the board of supervisors of county may authorize California public school district in the county to issue and sell its own bonds without the further action of the board of supervisors or officers of the county;
WHEREAS, the Governing Board of the Walnut Creek School District (the “District”), a California public school district under the jurisdiction of the County, has heretofore adopted and filed with the Clerk of this Board, a resolution (the “District Resolution”) providing for the issuance and sale of its Election of 2022 General Obligation Bonds, Series B (the “Bonds”), in an amount not to exceed $32,000,000, through a negotiated sale pursuant to sections 53506 et seq. of the California Government Code; and
WHEREAS, it has been requested that this Board authorize the District to issue and sell the Bonds on its own behalf through a negotiated sale, as permitted by section 53508.7 of the California Government Code, certain provisions of the California Education Code, and the terms set forth in the District Resolution;
NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Contra Costa, State of California, as follows:
Section 1. Recitals. All of the foregoing recitals are true and correct.
Section 2. Consent and Authorization of Negotiated Sale. This Board hereby consents to and authorizes the issuance and sale by the District on its own behalf of the Bonds, through a negotiated sale, as permitted by section 53508.7 of the California Government Code and the terms and conditions set forth in the District Resolution. This consent and authorization set forth herein shall only apply to the Bonds.
Section 3. Source of Payment. The County acknowledges receipt of the District Resolution, as adopted, and the direction from the District to levy collect and distribute ad valorem tax revenues pursuant to section 15250 et seq. of the California Education Code to pay principal of and interest on the Bonds when and if sold. Correspondingly, and subject to the issuance and sale of the Bonds and transmittal of information concerning the debt service requirements thereof to the appropriate County officers there shall be levied by the County, on all taxable property in the District, a continuing direct ad valorem tax annually during the period the Bonds are outstanding commencing with fiscal year 2025-26 in an amount sufficient to pay the principal of and interest on the Bonds when due, which tax revenues when collected will be placed in the Debt Service Fund of the District, as defined in the District Resolution, which Debt Service Fund has been irrevocably pledged for the payment of the principal of and interest on the Bonds when and as the same fall due. The monies in the Debt Service Fund, to the extent necessary to pay the principal of and interest on the Bonds, as the same become due and payable, shall be transferred by the County to the Paying Agent, as defined in the District Resolution, to pay the principal of and interest on the Bonds as set forth in the District Resolution.
Section 4. Approval of Actions. Officials and staff of the District and County are authorized to do any and all things and are hereby authorized and directed jointly and severally to execute and deliver any and all documents which they may deem necessary or advisable in order to assist the District with the issuance of the Bonds and otherwise carry out, give effect to and comply with the terms and intent of this resolution. Such actions heretofore taken by such officers, officials and staff are hereby ratified confirmed and approved.
Section 5. Indemnification of County. The District has represented that it shall indemnify and hold harmless, to the extent permitted by law, the County and its officers and employees (the “Indemnified Parties”), against any and all losses, claims, damages or liabilities, joint or several, to which the Indemnified Parties may become subject because of action or inaction related to the adoption of this resolution, or related to the proceedings for sale, award, issuance and delivery of the Bonds in accordance herewith and with the District’s Resolution, and that the District shall also reimburse the Indemnified Parties for any legal or other expenses incurred in connection with investigating or defending any such claims or actions.
Section 6. Limited Responsibility for Official Statement. Neither the Board nor any officer of the County has prepared or reviewed the official statement of the District describing the Bonds (the “Official Statement”) and this Board and the various officers of the County take no responsibility for the contents or distribution thereof; provided, however, that solely with respect to a section contained or to be contained therein describing the County’s investment policy, current portfolio holdings and valuation procedures, as they may relate to funds of the District held by the County Treasurer-Tax Collector, the County Treasurer-Tax Collector is hereby authorized and directed to prepare and review such information for inclusion in the Official Statement and in a preliminary official statement, and to certify in writing prior to or upon the issuance of the Bonds that the information contained in such section does not contain any untrue statement of material fact or omit to state any material fact necessary in order to make the statements made therein in the light of the circumstances under which they are made not misleading.
Section 7. Limited Liability. Notwithstanding anything to the contrary contained herein in the Bonds or in any other document mentioned herein, neither the County nor the Board shall have any liability hereunder or by reason hereof or in connection with the transactions contemplated hereby and the Bonds shall be payable solely from the moneys of the District available therefore as set forth in the District Resolution and herein.
Section 8. Effective Date. This resolution shall take effect immediately upon its passage.
* * * * * * * * * *
I hereby certify that the foregoing resolution was duly adopted at a meeting of the Board of Supervisors of Contra Costa County held on March 25, 2025, by the following vote:
AYES, and in favor of, Supervisors:
NOES, Supervisors:
ABSENT, Supervisors:
By
Chair of the Board of Supervisors
ATTEST:
By
Clerk of the Board of Supervisors
body