Commentary on Measure C

Are you sure you want vote to support this extravagant measure? It has no accountability.

This campaign was designed by a member of the school bonds cartel. We figured out just the right words to get you to you to open up your checkbook.

We'd also like to introduce you to our partners -- bond lawyers, brokers, wealthy investors, architects, management firms, construction companies, and trade unions. We all stand to make a ton of money on these bonds. Our profits come right off the top, before a penny is actually spent on improving the facilities.

We're not just doing it for the money. We like to show off our work in Architectural Digest and other places where the rich and famous congregate.

Remember, we've taken a lot of risk. We gave money to get your governing board members elected, so they'd be sure to remember us when we came around for a hand-out later.

It's just business-as-usual, here in sunny Corruptifornia.

Please don't read the fine print. That's just put in by the lawyers to make what we're going to do to for you legal.

When you see highlighting in the documents below, hover overCriticalExample commentary. it to see the commentary.

Measure C Question

To repair, update and renovate aging classrooms, construct and equip needed school facilities, repair or replace deteriorating roofs, plumbing, electrical systems, aging portable classrooms, install air conditioning, make improvements for student safety, renovate buildings for earthquake safety, and provide modern classrooms and equipment needed to support instruction in reading, math, arts, science and technology, shall Manhattan Beach Unified School District issue 114 million dollars in bonds at legal interest rates, with independent citizen oversight and audits?

Bonds - Yes Bonds - No

Impartial Analysis for Measure C

PR-004907-3 LA 570-064

IMPARTIAL ANALYSIS OF MEASURE C

By Mary C. Wickham, County Counsel

Approval of Measure C ("Measure") would authorize the Board of Trustees ("Board") of the Manhattan Beach Unified School District ("District"), which placed the Measure on the ballot by Resolution No. 2016-14, to issue general obligation bonds in an amount not to exceed $114,000,000.

Proceeds from the sale of the bonds authorized by the Measure shall be used only for the purposes specified in the Measure, including repairing, expanding, modernizing, replacing, renovating, acquiring, constructing, furnishing, and equipping District facilities at Grand View, Meadows, Pacific, Pennekamp, and Robinson Elementary Schools; Manhattan Beach Middle School; Mira Costa High School; and District preschool facilities. The projects include, but are not limited to, replacing relocatable buildings with permanent buildings; repairing, renovating, and expanding classrooms and other spaces; repairing or replacing heating, ventilation, and air-conditioning systems; repairing or replacing power, plumbing, and low-voltage systems; replacing doors and windows; making code-required accessibility and seismic upgrades; adding or replacing fencing and other security improvements; constructing, furnishing, and equipping new classrooms and multipurpose rooms; improving energy efficiency, including prepaying existing leases of solar equipment and other energy-efficient improvements; and constructing and renovating playgrounds, landscaping, irrigation systems, and parking. Bond proceeds may not be expended on teacher and administrator salaries and other operating expenses.

The Board shall cause independent performance and financial audits to be conducted annually to ensure that bond proceeds are spent only for projects identified in the Measure. The Board shall appoint an independent Citizens' Oversight Committee in accordance with Education Code section 15278 no later than 60 days after the Board enters the election results in its minutes to ensure that bond proceeds are spent as specified in the Measure and as provided by law. The District shall create an account into which bond proceeds shall be deposited and shall comply with the reporting requirements of Government Code section 53410.

The maximum rate of interest on any bond shall not exceed the maximum rate allowed by law. Bonds issued pursuant to Education Code section 15264 et seq. shall have a maturity not exceeding twenty-five (25) years, and bonds issued pursuant to Government Code section 53506 shall have a maturity not exceeding the maximum permitted under that section. According to the District's Tax Rate Statement, the best estimate of the highest tax rate required to fund the bond issue, which is estimated to be fiscal year 2024-25, is $22 per $100,000, based on a projection of assessed valuations available when the District filed its Tax Rate Statement.

This Measure requires a fifty-five percent (55%) vote for passage.

Argument in Favor of Measure C

PR-004907-4 LA 570-065

ARGUMENT IN FAVOR OF MEASURE C

Manhattan Beach Unified School District

Measure C improves the quality, health, and safety of all Manhattan Beach schools, focusing mainly on aging elementary schools built 61-77 years ago.

Over the years, our district has made important improvements to the high school and rebuilt the middle school. Following a comprehensive facilities assessment, our elementary schools and preschool were determined to have the greatest needs, the high school gymnasium is beyond repair and the middle school music facilities required expansion.

Our elementary schools, all recognized as California Distinguished Schools, need essential renovations to continue to serve our community for decades to come.

Specifically, Measure C will:

• – Repair or rebuild outdated elementary and preschool classrooms, including replacing leaky roofs, doors, windows, plumbing, and electrical systems;
• – Renovate buildings for earthquake safety;
• – Provide facilities and equipment needed to support high quality instruction in reading, math, arts, science, and technology;
• – Replace aging temporary classrooms with permanent multipurpose classrooms;
• – Improve student safety, security, lighting, fencing, and communications systems;
• – Improve heating, install air conditioning, as needed;
• – Expand music classrooms at the middle school.

Measure EE, a companion to Measure C, provides funding to replace the high school gym.

Both Measures C and EE are important and require a clear system of accountability, including a Citizens' Oversight Committee and independent audits to ensure money is spent properly.

All money raised from Measures C and EE will support Manhattan Beach children and teachers, and may only be used for specific purposes included in the District's detailed project list. The cost is approximately $15 a month for the typical homeowner, all tax deductible.

Supporting Measures C and EE is a wise investment for all residents. Good schools improve the quality of life in our community and protect home values.

(Continued on next page)
PR-004907-5 LA 570-066
ARGUMENT IN FAVOR OF MEASURE C (Continued)

Please join local business and community leaders, parents, teachers, and principals in voting Yes on Measures C and EE.

Argument Against Measure C

NO ARGUMENT AGAINST THIS MEASURE WAS SUBMITTED

Full Text of Measure C

PR-004896-8 LA 570-061

FULL TEXT OF BALLOT MEASURE C

The following is the full proposition presented to the voters by the Manhattan Beach Unified School District.

To repair, update and renovate aging classrooms, construct and equip needed school facilities, repair or replace deteriorating roofs, plumbing, electrical systems, aging portable classrooms, install air conditioning, make improvements for student safety, renovate buildings for earthquake safety, and provide modern classrooms and equipment needed to support instruction in reading, math, arts, science and technology, shall Manhattan Beach Unified School District issue 114 million dollars in bonds at legal interest rates, with independent citizen oversight and audits?

PROJECT LIST FOR THE BOND MEASURE

Bond proceeds will be expended to repair, expand, modernize, replace, renovate, acquire, construct, furnish and equip the facilities of the District at the following locations:

• – Grand View Elementary School
• – Meadows Elementary School
• – Pacific Elementary School
• – Pennekamp Elementary School
• – Robinson Elementary School
• – Manhattan Beach Middle School
• – Mira Costa High School
• – District Preschool Facilities

The following are the types of projects that may be financed with proceeds of the bonds:

Replacement of Relocatable Buildings with permanent classrooms and buildings, including building code required accessibility upgrades and related site improvements.

Modernization of Facilities including repairs to and renovation and expansion of existing classrooms and buildings, repairs to, renovation of or installation of new heating, ventilation, air conditioning, power, plumbing, low voltage systems (fire alarm, data, telephone), replacement of doors and windows, building code required accessibility upgrades and storm water retention systems.

Seismic Upgrades including structural improvements to withstand earthquakes.

(Continued on next page)
PR-004907-1 LA 570-062
FULL TEXT OF BALLOT MEASURE C (Continued)

Fencing and Security Improvements including perimeter and internal fencing and related site work, intrusion detection and related signal system upgrades and building code required accessibility upgrades.

New Classrooms including removing existing buildings and constructing, furnishing and equipping new classrooms.

Multipurpose Rooms including the construction of new multi-purpose rooms at various sites and related site work and building code required accessibility upgrades, and the acquisition of related technology, furnishings and equipment.

Energy Efficiency Improvements including the prepayment of lease payments currently owed by the District to acquire certain solar equipment and other energy efficiency improvements.

Renovation and Construction of Landscape and Hardscape Improvements including playgrounds and equipment, turf, plantings, irrigation systems, fencing and parking and transportation improvements, including onsite parking.

In preparing the list of projects, the District has evaluated safety, class size reduction, and informational technology needs.

Each project financed will include its share of architectural, engineering, and similar planning costs, program management, project or construction management, a contingency for unforeseen circumstances, offsite/utility connection costs, and interim housing. Projects also may include the payment of the costs of preparation of all facility planning, facility assessment reviews, environmental studies, construction documentation, plan check, inspection and permit fees, and the acquisition of improvements on the project list that are financed by the District on an interim basis through temporary loans, leases, lease-leaseback, or lease-purchase arrangements. Where terms such as "renovation," "upgrade," and "modernization" are used in the foregoing Project List for the Bond Measure, the Board of Trustees shall determine the best method for accomplishing the project's objective. For any listed project involving renovation or modernization of all or a portion of a building or facility, the District may proceed with new replacement construction instead (including any necessary demolition), if the District determines that replacement and new construction is more practical than renovation or modernization, considering the building's age, condition, expected remaining life, comparative cost, and other relevant factors.

The District intends to apply for State matching funds for certain of the projects to be financed. In the absence of such funding, the District may not be able to perform some of the projects listed above. Approval of this proposition does not guarantee that the proposed projects that are the subject of this proposition will (Continued on next page)
PR-004907-2 LA 570-063
FULL TEXT OF BALLOT MEASURE C (Continued) be funded beyond the local revenues generated by this proposition. The District's receipt of matching State funds will be subject to appropriation by the Legislature and approval of a statewide bond measure.

The budget for each project is an estimate and may be affected by factors beyond the District's control. The final cost of each project will be determined as plans are finalized, construction bids are awarded and projects are completed. Based on the final costs of each project, certain projects described above may be delayed or may not be undertaken.

Bond proceeds shall be expended only for the specific purposes identified herein. Proceeds of the bonds may be used to pay or reimburse the District for the cost of District staff when performing work on or necessary and incidental to the bond projects. The District shall create an account into which proceeds of the bonds shall be deposited and comply with the reporting requirements of Government Code § 53410.

Fiscal Accountability: In accordance with Education Code § 15272, the Board of Trustees will establish a citizens' oversight committee and will conduct annual independent audits to assure that funds are spent only on the list of projects authorized above and for no other purpose. The expenditure of bond money on these projects is subject to stringent financial accountability requirements. By law, performance and financial audits will be performed annually, and all bond expenditures will be monitored by an independent citizens' oversight committee to ensure that funds are spent as promised and specified. The citizens' oversight committee shall include at least seven members, with the following relationships: one member active in a business organization, one member active in a senior citizens' organization, one member active in a bona fide taxpayers' organization, one member who is a parent or guardian of a student, one member who is both a parent or guardian of a student and active in a parent-teacher organization. District employees, vendors, contractors and consultants may not serve on the citizens' oversight committee.

No Administrator Salaries: Proceeds from the sale of the bonds authorized by this proposition shall be used only for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, and not for any other purpose. No funds will be used toward teacher or administrator salaries or other operating expenses.

Measure C Tax Rate Statement

PR-004907-6 LA 570-067

TAX RATE STATEMENT - MEASURE C

An election will be held in the Manhattan Beach Unified School District (the "District") on November 8, 2016, to authorize the issuance by the District of up to $114,000,000 in general obligation bonds to finance various improvements at District schools. The following information is submitted in compliance with California Elections Code Sections 9400-9404.

1. The best estimate from official sources of the tax rate that would be required to be levied to fund this bond issue during fiscal year 2017-18, which is the first fiscal year after the sale of the first series of bonds, based on a projection of assessed valuations available at the time of filing of this statement, is $0.022 per $100 of assessed valuation, which equates to $22.00 per $100,000 of assessed valuation.

2. The best estimate from official sources of the tax rate that would be required to be levied to fund this bond issue in the first fiscal year after the sale of the last series of bonds, which is estimated to be fiscal year 2022-23, based on a projection of assessed valuations available at the time of filing of this statement, is $0.022 per $100 of assessed valuation, which equates to $22.00 per $100,000 of assessed valuation.

3. The best estimate from official sources of the highest tax rate that would be required to be levied to fund this bond issue, which is estimated to be fiscal year 2024-25, based on a projection of assessed valuations available at the time of filing this statement, is $0.022 per $100 of assessed valuation, which equates to $22.00 per $100,000 of assessed valuation.

4. The best estimate from official sources of the total debt service, including principal and interest, that would be required to be repaid if all the bonds are issued and sold is $185,534,218.

The foregoing projections of assessed valuations and tax rates are based on the experience and historical data within the District and are estimates only based on information obtained from official sources. The actual tax rates and the years in which they will apply may vary depending on the timing of bond sales, the amount of bonds sold at each sale, market interest rates at the time of each sale and actual assessed valuation in each year. The timing of the bond sales and the amount of bonds sold at any given time will be determined by the District based upon its need for construction funds and other factors. Actual assessed valuations will depend upon the amount and value of taxable property within the District as determined by the County Assessor in the assessment and the equalization process.

Dated: July 27, 2016

MICHAEL D. MATTHEWS, Ed.D.
Superintendent
Manhattan Beach Unified School District