January 4, 1999

The Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, CA 90012

Dear Supervisors:

ISSUANCE AND SALE OF WESTSIDE UNION SCHOOL DISTRICT
(COUNTY OF LOS ANGELES, CALIFORNIA)
GENERAL OBLIGATION BONDS, (1998 ELECTION SERIES A)
(FIFTH DISTRICT -- 3-VOTES)

IT IS RECOMMENDED THAT YOUR BOARD:

PURPOSE OF RECOMMENDED ACTION

On December 10, 1998, the Governing Board of the Westside Union School District adopted a Resolution determining that the District needs to borrow funds in an aggregate principal amount not to exceed $8,500,000 to be used for authorized purposes.

JUSTIFICATION

On November 3, 1998, an election was held whereby qualified voters of the District approved the proposition authorizing the District to issue $14,700,000 in general obligation bonds in order to make various improvements for the District. This is the first issuance in a series of bonds authorized under this bond measure.

Pursuant to Section 15140 of the Education Code, the Board of Supervisors is responsible for offering the District's bonds for sale. Such bonds shall be issued in the name and onbehalf of such school district by the Board of Supervisors of the County following receipt of the district resolution requesting such borrowing.

FISCAL IMPACT

None to the County. All debt indebtedness will be borne by the District.

FINANCING

Not applicable

FACTS AND PROVISIONS/LEGAL REQUIREMENTS

The Resolution provides for issuance of Current Interest Bonds and Capital Appreciation Bonds not to exceed a maximum interest rate of eight percent (8.0%). The final structure will be determined at the time of pricing to achieve the lowest cost of financing within the limits of the proposition's tax levy. Final maturity of the bonds will not exceed twenty-five years. Provisions for optional redemption of the Current Interest Bonds will be described in the Contract of Purchase.

The Resolution provides for the negotiated sale of the bonds, with participation by the Treasurer and Tax Collector in pricing of the bonds, to the Underwriters. The District has selected PaineWebber Incorporated as Underwriters; the firm of O'Melveny & Myers LLP as Bond Counsel; Caldwell Flores Winters, Inc. as Financial Advisor; and U.S. Bank Trust National Association as Paying Agent.

The County will annually levy and collect ad valorem taxes for the repayment of the bonds on behalf of the District.

CONCLUSION

Upon approval of this Resolution, the Department will need two (2) originally executed copies of the adopted Resolution.

MJS:MS
bbg:schools:Westside GO Bd Ltr
Attachments(2)
c: Executive Officer, Board of Supervisors

Top Of Page