Commentary on Measure EE

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 EE Question

To replace the 65 year old Mira Costa High School gymnasium utilized by the community and district by constructing and equipping a new gymnasium, physical education and activities center, including adding instructional space and bathrooms, air conditioning, heating, electrical and plumbing systems, shall Manhattan Beach Unified School District issue 39 million dollars in bonds at legal interest rates, with independent citizen oversight and audits?

Bonds - Yes Bonds - No

Impartial Analysis for Measure EE

PR-004908-2 LA 570-070

IMPARTIAL ANALYSIS OF MEASURE EE

By Mary C. Wickham, County Counsel

Approval of Measure EE ("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. 2016-15, to issue general obligation bonds in an amount not to exceed $39,000,000.

Proceeds from the sale of the bonds authorized by the Measure shall be used only for the purposes specified in the Measure, namely, replacing the existing gymnasium at Mira Costa High School with a new gymnasium, physical education and activities center. The improvements include constructing and equipping a main gymnasium, a second, smaller gymnasium, and a variety of adjacent rooms for instruction, athletics, and physical education, including physical education classrooms, a study/learning center, team rooms, locker rooms, activity rooms, coaches' rooms, and storage. The improvements also include adding bathrooms and air-conditioning, heating, electrical, and plumbing systems needed for the gymnasium, physical education and activities center. 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 proceeds of the bond 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 allowed 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 2018-19, is $8 per $100,000, based on a projection of assessed valuation 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 EE

PR-004908-3 LA 570-071

ARGUMENT IN FAVOR OF MEASURE EE

Manhattan Beach Unified School District

A companion to Measure C, Measure EE addresses the need to replace the 65-year-old high school gym and athletics facilities at Mira Costa High School while Measure C focuses mainly on renovating elementary schools.

The Mira Costa gym has served generations of Manhattan Beach residents well. Since 1951, toddlers to senior citizens have participated in and enjoyed activities at this Manhattan Beach public facility. Unfortunately, the gymnasium is now beyond its useful life. Expensive to maintain, inadequate for the number of students and community members who use it, and in some ways unsafe, our Mira Costa athletics facilities need replacement.

Measure EE will:

• – Build and equip a safe, modern athletics complex for girls' and boys' physical education, health education, athletics and community use;
• – Replace or renovate wooden gym courts, instructional space, locker rooms, offices, training facilities, laundry, storage, and bathrooms to benefit all students and the community, and to impact 33 sports as well as public events;
• – Improve heating, air conditioning, electrical, and plumbing for athletics facilities.

The modest cost to taxpayers is approximately $5 a month for the typical homeowner, all tax deductible.

Mira Costa is our region's premier high school with many newly renovated classrooms and labs. Replacement of athletics facilities was postponed as other needs were addressed first.

Recent construction at the high school was completed on time and on budget. Measures C and EE require the same clear system of accountability, including a Citizens' Oversight Committee and independent audits to ensure money is spent properly.

All funds from Measures C and EE will stay in Manhattan Beach and may only be used for specific purposes included in the District's detailed project list.

Good schools improve the quality of life in our community and add to the value of our homes.

(Continued on next page)
PR-004908-4 LA 570-072
ARGUMENT IN FAVOR OF MEASURE EE (Continued)

Please join us in voting Yes on Measures C and EE.

Argument Against Measure EE

NO ARGUMENT AGAINST THIS MEASURE WAS SUBMITTED

Full Text of Measure EE

PR-004907-7 LA 570-068

FULL TEXT OF BALLOT MEASURE EE

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

To replace the 65 year old Mira Costa High School gymnasium utilized by the community and district by constructing and equipping a new gymnasium, physical education and activities center, including adding instructional space and bathrooms, air conditioning, heating, electrical and plumbing systems, shall Manhattan Beach Unified School District issue 39 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 replace the 65-year-old high school gymnasium at Mira Costa High School with a new gymnasium, physical education and activities center located at the school. The improvements will include constructing and equipping a main gymnasium, a second, smaller gymnasium and a variety of adjacent rooms for instruction, athletics and physical education, including physical education classrooms, a study learning center, team rooms, locker rooms, activity rooms, coaches' rooms and storage. The improvements will also include adding bathrooms, air conditioning, heating, electrical and plumbing systems needed for the gymnasium, physical education and activities center.

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

Implementation of Construction Program. 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.

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 (Continued on next page)
PR-004908-1 LA 570-069
FULL TEXT OF BALLOT MEASURE EE (Continued) 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 EE Tax Rate Statement

PR-004908-5 LA 570-073

TAX RATE STATEMENT - MEASURE EE

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 $39,000,000 in general obligation bonds to replace the high school gymnasium. 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 $0.008 per $100 of assessed valuation, which equates to $8.00 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 2020-21, based on a projection of assessed valuations available at the time of filing of this statement, is $0.008 per $100 of assessed valuation, which equates to $8.00 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 2018-19 based on a projection of assessed valuations available at the time of filing this statement, is $0.008 per $100 of assessed valuation, which equates to $8.00 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 $61,571,192.

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