Commentary on Measure V

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 V Question

EXHIBIT B

SHORT FORM OF BOND MEASURE

SANTA MONICA COLLEGE CLASSROOM REPAIR, CAREER TRAINING, HIGHER EDUCATION ACCESS MEASURE. To improve local access to affordable higher education for high school graduates/ adults/ veterans; improve education/ career training in math, science, writing, arts, business; shall Santa Monica Community College District issue $345,000,000 in bonds at legal rates, with citizens oversight/ annual audits, to repair, upgrade, construct, modernize, equip facilities for technology, science/ biotech, college readiness; repair aging, leaky classrooms, remove asbestos, upgrade disabled access, seismic and campus safety?

Bonds - Yes Bonds - No

Impartial Analysis for Measure V

ANALYSIS OF MEASURE V

by

Mary C. Wickham, County Counsel

Approval of Measure V ("Measure") would authorize the Board of Trustees ("Board") of the Santa Monica Community College District ("District"), which placed the Measure on the ballot by Resolution No. 2, to issue general obligation bonds in an amount not to exceed $345,000,000.

Proceeds from the sale of the bonds authorized by the Measure shall be used only for the purposes specified in the Measure, including, but not limited to, making capital improvements at any or a11 District facilities for classrooms and equipment for career development programs; upgrading safety and security systems; upgrading for Americans with Disabilities Act compliance; upgrading or constructing restrooms; installing, repairing, or replacing heating, air conditioning, ventilation and electrical systems, and roofs, windows, walls, and doors; resurfacing or replacing hard courts, turf, irrigation, and landscaping; building or renovating athletic laboratories and lockers; consolidating, constructing, replacing, extending, upgrading, completing, or renovating various buildings for programs in math, science, liberal arts, business, art, and performing arts; replacing the campus police station; making landscaping improvements to increase water conservation; designing and installing an outdoor classroom for plays and lectures; converting library book-shelving areas into additional study, tutoring, and collaborative learning spaces; upgrading facilities to improve energy and resource efficiency; upgrading technology infrastructure; providing a joint-use athletic field at the City of Santa Monica's Memorial Park; providing a joint-use auditorium at the John Adams Middle School; and enhancing the District's instructional presence in the City of Malibu. Bond proceeds may not be expended on teacher and administrator salaries and pensions 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 the projects identified in the Measure. The Board shall appoint an independent Citizens' Oversight Committee in accordance with the Education Code to ensure that bond proceeds are spent as specified in the Measure and as provided by law.

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 the Government Code shall have a maturity not exceeding forty (40) years. For compound interest bonds, the maturity shall not exceed twenty-five (25) years. According to the District's Tax Rate Statement, the best estimate of the highest tax rate required to fund the bonds, and an estimate of the year in which that rate will apply, is $25 per $1 00,000 of assessed valuation of all property to be taxed in the year 2021-22. The estimate is based on estimated assessed valuations available when the District filed its Tax Rate Statement, or on a projection based on experience within the District, or other demonstrable factors.

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

Argument in Favor of Measure V

ARGUMENT IN FAVOR OF MEASURE V

Vote Yes on Measure V!

For 87 years Santa Monica College has been the premier Community College in California. SMC is number one in transfers to the University of California and provides over 100 affordable fields of study and job-training programs.

50% of Santa Monica High School students attend SMC. SMC serves 1,000 veterans each year.

As technology changes the workplace and the cost of higher education soars, access to a high quality Community College education with safe, modern, and efficient facilities adaptable to changes in technology is more important than ever.

Measure V allows SMC to better meet the needs of our community by completing the 2010 Master Plan:

1. - Renovating, replacing or modernizing aging and inadequate facilities on the main campus, including replacing classroom trailers from the 1994 earthquake
2. -Providing a new Science Extension building
3. -Removing asbestos and bringing facilities up to current seismic, accessibility, and safety standards
4. -Upgrading for improved information and communications technologies, and greater energy efficiency and water conservation
5. - Implementing joint use projects including expanding Santa Monica's Memorial Park, renovating the School District's John Adams Middle School Auditorium, and enhancing community educational facilities in Malibu

All funds must be used locally. None of the bond proceeds can be taken away by the State. Independent audits are required.

It is the power of the student-teacher connection and the breadth and depth of the program that create the formula for SMC's success. Its career and transfer oriented programs rival the nation's best universities.

SMC has served more than 27,000 Santa Monica and Malibu residents in the past decade. More members of our community take classes at SMC than do residents of other districts at their community colleges. That's why Measure V is supported by educators, parents, and local business and community leaders throughout our community.

Vote Yes on Measure V!

Rebuttal to Argument in Favor of Measure V

Rebuttal to Argument in Favor of Measure V

SMC says show me the money.

We have 4 times.

Why raise our taxes a 5th time when we're not getting the straight story?

What's missing?

The amount of accumulated SMC bond debt previously approved for similar purposes-- fix or replace aging buildings -- each new request in sharply escalating amounts.

How this bond will differ from the 4 already passed. Most buildings have already been replaced. Some, funded from a past bond, have yet to be built. Vague descriptions for improvements and land acquisition are inadequate and unconvincing.

There's no accounting of expenditures from previous bonds.

How were they spent? What's left? Why?

Why were previous approved bonds not enough?

The true amount of indebtedness for this bond is NOT $1.60/month for renters and $8.65/month for property owners as claimed. We'll pay $722,483,675 in addition to the past 4 SMC bonds –an astonishing $2 billion --that won't be paid until 2046.

The true number of local high school students who attend SMC full-time is a very small percentage despite the misleading statistics the College reports. Yet we are being asked to underwrite the cost of more facilities benefiting mostly out-of-district students. The state recognized that it has responsibility to help fund the open door policy of our community colleges, so Prop 51 on this same ballot, if passed, will provide billions of dollars for state community colleges, including SMC.

We've done our research.

Make an informed choice.

Vote NO on Measure V it's Very excessive.

Argument Against Measure V

ARGUMENT AGAINST MEASURE V

$2 BILLION in Bond Obligations Is Too Much. VOTE NO on MEASURE V

Supporting higher education is NOT the issue here. If this bond measure passes, Santa Monica and Malibu property owners and tenants will be saddled with up to $2 billion tax obligations until the year 2046!

And this debt must be paid locally, even though only 4% of the over 30,000 SMC students are graduates of Santa Monica and Malibu high schools.

The 2015/2016 L.A. County Civil Grand Jury cautions that we spend too much on bonds before we have even repaid earlier ones.

Remember these SMC bonds? Here's why the well is dry.

1. 1992: $23 Million (Not paid off until 2022)
2. 2002: $160 Million (Not paid off until 2032)
3. 2008: $295 Million (Not paid off until 2038)
4. 2004: $135 Million (Not paid off until 2034)
5. +2016: $345 Million (proposed) (Not paid off until 2046)

Total tax obligations (including interest) = up to $2 Billion

SMC is exempt from local land-use laws. It can build more buildings and generate more traffic without any municipal review. The SMC 2010 Facilities Master Plan estimated 5,600 new daily car trips, increasing traffic congestion at 36 intersections.

The $130 million Student Services building remains a huge hole in the ground since 2009. The new $24 million glass-walled Information Technology building was apparently built without air conditioning.

The Main Campus Quad cost $11 million. The Early Childhood Education Center near City Hall, budgeted at $7 million, will provide child care primarily for 110 children of City Hall, RAND, and SMC employees, many of whom are not local residents.

SMC must wisely spend the money we have generously given four times in recent years, recruit more local students, and be fully transparent and accountable.

Then we can talk about another bond.

Rebuttal to Argument Against Measure V

Rebuttal to Argument Against

Yes on Measure V.

Opponents' claims against Measure V are simply false. Supporting education is the issue here.

All neighboring communities are committing to the same level of support for their community colleges as proposed by Measure V.

Repairing and modernizing Santa Monica College classrooms protects our community's investment in SMC and gives our local residents facilities designed for a 21st Century education.

SMC has the State's best faculty. Failing to repair our classrooms risks losing great teachers in future years.

SMC has kept its promises:

REDUCED CAR TRIPS:

1. -Award-winning public transit program, in place since 2008 =reduced car trips 30%
2. -Reduction of planned footprint by 20% due to new online education offerings= reduced car trips 10%

FISCAL RESPONSIBILI1Y:

1. -All SMC facilities are reviewed locally.
2. -Santa Monica College passed a County review of all school bond programs with honors.
3. -The Student Services building, now under construction with a new design, is saving taxpayers $30 million.

LOCAL PRIORITIES:

1. -The planned child care facility guarantees priority for Santa Monica residents.
2. -50% of Santa Monica High School students attend SMC.
3. -More than 27,000 Santa Monica and Malibu residents have attended Santa Monica College in the past decade.

SMC remains number one in transfers to the University of California, UCLA and USC.

Measure V is supported by educators, parents, and local business and community leaders.

Have more questions? Call Dr. Kathryn Jeffery, SMC President, 310-434-4200 or visit VoteYESforSMC.com for more details and background.

SMC is Valued.

SMC is Vibrant.

SMC is Very Affordable.

Vote Yes for Measure V.

Full Text of Measure V

FULL TEXT BALLOT PROPOSITION
OF THE SANTA MONICA COMMUNITY COLLEGE DISTRICT
BOND MEASURE ELECTION FOR NOVEMBER 8, 2016

SANTA MONICA COLLEGE CLASSROOM REPAIR, CAREER TRAINING, HIGHER EDUCATION ACCESS MEASURE. To improve local access to affordable higher education for high school graduates/ adults/ veterans; improve education/ career training in math, science, writing, arts, business; shall Santa Monica Community College District issue $345,000,000 in bonds at legal rates, with citizens oversight/ annual audits, to repair, upgrade, construct, modernize, equip facilities for technology, science/ biotech, college readiness; repair aging, leaky classrooms, remove asbestos, upgrade disabled access, seismic and campus safety?

PROJECT LIST

The Board of Trustees of the Santa Monica Community College District certifies that it has evaluated the District's urgent and critical capital needs, including school and student safety issues, enrollment trends, class size reduction, overcrowding, energy efficiency and computer technology, seismic safety requirements, and aging, outdated or deteriorating school buildings in developing the scope of projects to be funded. In developing the scope of projects, the District has prioritized the key health and safety and sustainability needs so that the most critical school site needs are addressed. The Board conducted an evaluation at all District sites and received input in developing the scope of projects to be funded. In approving this Project List, the Board of Trustees determines that the District should:

Adhere to specific COMMUNITY ACCOUNTABILITY safeguards such as these:

1. (a) All bond expenditures are subject to review by a Citizens Oversight Committee which reports to the public, as provided in Education Code Section 15278 et seq.
2. (b) The District will involve faculty, staff and students in curriculum development at financed facilities throughout the life of the bond construction program.
3. (c) The District will provide an opportunity for input from community and neighborhood residents during the development of projects to be funded by this bond measure.
4. (d) The District will apply energy-saving and sustainability standards to all repairs and improvements.
5. (e) The District will enter into or extend Cooperative Use Agreements with the City of Santa Monica, the City of Malibu and the Santa Monica-Malibu Unified School District in order to make the most efficient use of bond funds whenever feasible.

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The Project List includes the following types of projects:

All $345 million of bond proceeds will be spent within the Cities of Santa Monica and Malibu or at sites that share a boundary and are contiguous with the Cities of Santa Monica or Malibu.

None of the bond proceeds can be taken away by the State of California.

All projects funded by bond proceeds will be available for educational and public uses authorized in this Project List.

Replacement safety and modernization projects were identified by means of an independent facilities assessment. Replacement projects and projects to meet new educational needs have been presented to and approved by the District Board of Trustees and are included as priority items in the District's Capital Improvement Plan on file with the State Chancellor's Office.

The items proposed for financing in whole or in part with the proceeds of the District's general obligation bonds include the following capital projects at any or all District facilities:

• • provide facilities, classrooms and/or equipment for career education programs in such fields as nursing, computer technology, new media, early childhood education, business, graphic design and other occupations in more than 80 fields of study;
• • development and implementation of facilities master plans and related requirements such as environmental impact reports and soils testing, architectural, engineering and similar planning costs;
• • demolition of temporary and/or obsolete and unsafe facilities;
• • installation and/or upgrading of emergency lighting, fire alarm and security systems;
• • installation, upgrade or repair of roadways, walkways, grounds, parking lots and garages;
• • entrance improvements; upgrade facilities to comply with Federal mandated Americans with Disabilities Act (ADA) handicap accessibility requirements and State of California seismic standards;
• • signage for safety and public information;
• • upgrade and/or construction of new and existing restrooms;
• • installation, repair and/or replacement of heating, air conditioning and ventilation systems; upgrade of facilities for energy efficiency and to reduce fire risks;
• • repair and replacement of worn-out and leaky roofsCriticalIs it a coincidence that every district in the state has "leaky roofs"? You might even ask if leaky roofs actually exist? If they do, why haven't they been repaired yet. According to the school bond cartel's professional marketing study, claiming "leaky roofs" translates directly into yes votes from voters who are made to feel guilty about it., windows, walls, doors and drinking fountains;
• • installation of wiring and electrical systems to safely accommodate computers, technology and other electrical devices and needs;
• • resurfacing or replacing hard courts, turf and irrigation systems and campus landscaping;
• • building new and/or renovating existing athletic laboratories and lockers;
• • upgrading or replacing inadequate libraries, and administrative spaces;

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• • installing interior and exterior painting and floor covering; installing covered walkways; construction of various forms of storage and support spaces;
• • replacing water and sewer lines and other plumbing systems;
• • financing/refinancing of real property leases; financing/refinancing of previously approved bond-financed projectsCriticalLeases are OPERATING expenses explicitly prohibited by the Constitution Article XIII-A Section 1(b)(3)(A) (Proposition 39). "not for any other purpose, including teacher and administrator salaries and other school operating expenses.";
• • acquiring related furnishings and equipment for all renovation, improvement and/or new and existing construction project components;
• • the relocation and/or acquisition of temporary facilities during the renovation, improvement and/or new construction of project components as necessary to maintain education programs in operation during construction;
• • acquiring, refinancing and/or entering into arrangements for the use and/or joint use of real property for existing and future classrooms, student services, child care and/or other uses; making site improvements, building infrastructure and/or constructing additional facilities for the purpose of expanding instructional programs to meet future educational demands of District students.

SAFETY AND MODERNIZATION PROJECTS

Science and Math Extension. Santa Monica College is renowned for its science and allied health programs; however, the existing labs for Life, Physical and Earth Sciences are at capacity; also, the current facility for the Math Department consists of temporary trailers and lacks the infrastructure for smart classrooms or support for the use of modern technology for instructional use. Consolidating Math and Science programs into a new Science Extension building supports interdisciplinary interaction. The building extension would qualify for up to $40 million in State funding, which requires a local match. The building will contain an upgraded planetarium and a community lab for all ages, including a nutrition and culinary lab in support of the College's nutrition program.

Replacement of Temporary Classrooms. Bond proceeds would be used to replace the 1994 temporary trailer Math Village classroom complex with permanent First Year Experience classrooms, student support study space and instructional support labs. These trailers were rushed into service following the 1994 Northridge Earthquake and have exceeded their time of usable service. Additionally, proceeds would be used to replace the 1984 modular English as a Second Language classroom building. This modular building lacks fire sprinklers, is poorly ventilated and has also exceeded its time of usable service.

Upgrading, Renovation or Replacement of Two 1950's Buildings. The 1952 Liberal Arts building has the poorest Facility Condition Index rating on the College's main campus, lacks fire sprinklers and does not have an elevator. The 1952 Letters & Science building has the second poorest Facility Condition Index rating on the main campus, and also lacks both fire sprinklers and an elevator.

Renovation of Business Building. The 1981 Business Building is overdue for renovation. The building houses a large number of computer classrooms and labs.

Replacement of Campus Police Station. The current police facility is antiquated and undersized. Applying bond proceeds to the replacement, construction, renovation and relocation of the campus police station and including a public space for community and neighborhood use will improve public and campus safety.

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Upgrading, Renovation or Replacement of Art Building. An upgraded, renovated or newly constructed art structure will replace aging building systems and improve space distribution for the many disciplines within the Art Department. The College is eligible to receive up to $10 million in State funding for this project, which requires a local match.

Landscaping/ Water Conservation Improvements and Completing Pico Boulevard Frontage Improvements. Applying bond proceeds for landscaping improvements, including landscaping improvements to complete the main campus Pico Boulevard frontage, will improve water conservation through water reclamation and installation of drought resistant landscaping.

Completing Master Plan Improvements at the Santa Monica College Performing Arts Center Campus. Construction at the Performing Arts Center campus has proceeded in phases, in coordination with available funding. The first phase added the Broad Stage and the Edye Second Space theaters. The second phase has added an East Wing rehearsal hall and music performance labs. The final phase, to be funded from bond proceeds, will include an underground three-level parking structure to replace most of the existing surface parking, along with an above-ground art gallery and green-space plaza. The theaters at the Performing Arts Center are among the most heavily used theaters in Los Angeles County.

Designing and Installing an Outdoor Classroom. The design, construction, installation and improvement of a venue for outdoor plays and class lectures.

Converting Library Interiors. Conversion of existing Library floor space used for book stacks to construct and install additional student study areas, tutoring and collaborative learning spaces that will support student success.

Making Environmental Performance Improvements. Bond funds will be used to upgrade District facilities to achieve energy or resource use efficiency and water conservation and achieve sustainability for District operations.

Upgrading Technology Infrastructure. Bond proceeds will be applied to renovate, replace, upgrade, acquire, install and integrate major site, building and utility systems, equipment and related infrastructure, including lighting, electrical, wiring and related infrastructure for modern technology, classroom instructional technology, communications and security technology (including security cameras and monitoring systems), data, voice, public address and audio-visual communication, energy efficiency, management monitoring systems, networks, fixtures, controls and equipment, cable infrastructure, network expansion, wireless access points and other communications and administrative systems.

COMMUNITY JOINT USE PROJECTS

Providing for a Joint Use Project with the City of Santa Monica. The College will provide up to $20 million in bond funds for the expansion of the City of Santa Monica's Memorial Park to accommodate soccer and/or other field sports for use by College students and the general public.

Providing for a Joint Use Project with the Santa Monica-Malibu Unified School District. The Johns Adams Middle School Auditorium, adjacent to the College's main campus, has suffered earthquake damage and is no longer in service. The College will make available bond funds as needed to assist the School District in renovating or replacing the auditorium with a seating capacity of approximately 750, for joint use.

Providing for City of Malibu Infrastructure and Community Educational Facilities. The College will provide up to $25 million in funding enhancements to its instructional presence in Malibu in partnership with the City of Malibu.

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ADDITIONAL CONDITIONS

The allocation of bond proceeds may be affected by the District's receipt of State matching funds and the final costs of each project. In the absence of State matching funds, which the District will aggressively pursue to reduce the District's share of the costs of the projects, the District may undertake fewer than all of the projects listed above. Some projects may be undertaken as joint use projects in cooperation with other local public or non-profit agencies.

Necessary site preparation/ restoration may occur in connection with new construction, renovation or remodeling, including ingress and egress, removing, replacing or installing irrigation, storm drain, and utility lines, trees and landscaping, relocating fire access roads, and acquiring any necessary easements, licenses, or rights of way to the property. Proceeds of the bonds may be used to pay or reimburse the District for the costs of District staffCriticalWhat was that they said about no administrative salaries? when performing work on or necessary and incidentalCriticalWho do you think gets to decide? to bond projects. Bond proceeds shall only be expended for the specific purposes identified herein.

NO ADMINISTRATOR SALARIES. PROCEEDS FROM THE SALE OF THE BONDS AUTHORIZED BY THIS PROPOSITION SHALL BE USED ONLY FOR THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, OR REPLACEMENT OF DISTRICT FACILITIES, INCLUDING THE FURNISHING AND EQUIPPING OF FACILITIES, AND NOT FOR ANY OTHER PURPOSE, INCLUDING TEACHER AND ADMINISTRATOR SALARIES OR PENSIONS OR OTHER OPERATING EXPENSES.

FISCAL ACCOUNTABILITY. 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 (EDUCATION CODE SECTION 15278 ET SEQ.) TO ENSURE THAT FUNDS ARE SPENT AS PROMISED AND SPECIFIED. THE CITIZENS' OVERSIGHT COMMITTEE MUST INCLUDE, AMONG OTHERS, REPRESENTATIVES OF A BONA FIDE TAXPAYERS ASSOCIATION, A BUSINESS ORGANIZATION AND A SENIOR CITIZENS ORGANIZATION. NO DISTRICT EMPLOYEES OR VENDORS ARE ALLOWED TO SERVE ON THE CITIZENS' OVERSIGHT COMMITTEE.

Measure V Tax Rate Statement

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EXHIBIT C

TAX RATE STATEMENT CONCERNING MEASURE __
TAX RATE STATEMENT
REGARDING PROPOSED
$345,000,000
SANTA MONICA COMMUNITY COLLEGE DISTRICT
GENERAL OBLIGATION BONDS

An election will be held in Santa Monica Community College District (the "District") on November 8, 2016, for the purpose of submitting to the electors of the District the question of issuing bonds of the District in the principal amount of $345 million. If such bonds are authorized and sold, the principal thereof and interest thereon will be payable from the proceeds of taxes levied on the taxable property in the District. The following information regarding tax rates is given to comply with Section 9401 of the California Elections Code. This information is based upon the best estimates and projections presently available from official sources, upon experience within the District and other demonstrable factors.

Based upon the foregoing and projections of the assessed valuations of taxable property in the District, and assuming the entire debt service on the bonds will be paid through property taxation:

1. The best estimate from official sources of the tax rate that would be required to be levied to fund the bond issue during the first fiscal year after the first sale of the bonds, based on estimated assessed valuations available at the time of the filing of this statement, or on a projection based on experience within the District or other demonstrable factors, is $18 per $100,000 of assessed valuation of all property to be taxed in the year 2019-20.

2. The best estimate from official sources of the tax rate that would be required to be levied to fund the bond issue during the first fiscal year after the last sale of the bonds and an estimate of the year in which that rate will apply, based on estimated assessed valuations available at the time of the filing of this statement, or on a projection based on experience within the District or other demonstrable factors, is $25 per $100,000 of assessed valuation of all property to be taxed in the year 2025-26.

3. The best estimate from official sources of the highest tax rate that would be required to be levied to fund the bond issue and an estimate of the year in which that rate will apply, based on estimated assessed valuations available at the time of the filing of this statement, or on a projection based on experience within the District or other demonstrable factors, is $25 per $100,000 of assessed valuation of all property to be taxed in the year 2021-22.

Attention of voters is directed to the fact that the foregoing information is based upon projections and estimates. The actual timing of sales of the bonds and the amount to be sold at any time will be governed by the needs of the District and other factors. The actual interest rates at which the bonds will be sold, which will not exceed the maximum permitted by law, will depend upon the bond market at the time of sale. The actual assessed valuations in future years will depend upon the value of property within the District as determined in the assessment and the equalization process. Therefore, the actual tax rates and the years in which those tax rates will be applicable may vary from those presently estimated and stated above.

The District estimates, based on current assumptions, that total debt service on the bonds would be $722,483,675.

Measure V Agenda Description

Agenda of July 5, 2016 (complete item)

V. MAJOR ITEMS OF BUSINESS

#1 Five-­-Year Construction Plan 2016-­-2017 through 2021-­-2022 6

#2 Resolution for the Order of Bond Election Under Sections 15100 and 15120 of the Education Code and Specification of the Election Order 9

RECOMMENDATION NO. 2

SUBJECT: RESOLUTION FOR THE ORDER OF BOND ELECTION UNDER SECTIONS 15100 AND 15120 OF THE EDUCATION CODE AND SPECIFICATION OF THE ELECTION ORDER

SUBMITTED BY: Superintendent/President

REQUESTED ACTION: It is recommended that the Board of Trustees approve the following resolution calling for an election authorizing the issuance of general obligations bonds of the District at an election to be held November 8, 2016.

Measure V Resolution

WHEREAS, Santa Monica Community College District (the "District") offers local students the highest rate of transfers to four-year universities and preparation for skilled careers, and by repairing and upgrading classrooms and facilities, the District can continue to increase opportunities for local students to earn college credits, certifications and job skills at a reasonable price; and

WHEREAS, certain facilities of the District are outdated, deteriorating and require improvements and repairs such as upgrades in wiring/electrical systems and gas and sewer lines, meeting handicapped accessibility and earthquake safety requirements and fixing plumbing and leaky roofs; and

WHEREAS, the District wishes to provide additional funding for the improvement, construction, equipping and furnishing of District facilities, to ensure that students have modern, safe and efficient classrooms and indoor and outdoor laboratories and that they have access to technology necessary for them to compete for good careers; and

WHEREAS, in the judgment of the Board of Trustees of the District (the "Board"), it is advisable to call an election to submit to the electors of the District the question of whether bonds of the District shall be issued and sold for the purpose of funding the construction, reconstruction, rehabilitation and replacement of District facilities, including the furnishing or equipping of District facilities, or the acquisition or lease of real property for District facilities and paying costs incident thereto; and

WHEREAS, pursuant to the provisions of Proposition 39, adopted by the voters of the State of California (the "State") on November 7, 2000 ("Proposition 39"), comprising Article XIIIA, Section 1, paragraph (b) of the California Constitution ("Article XIIIA"), the District may incur bonded indebtedness upon the vote of fifty-five percent (55%) or more of the qualified electors of the District voting on the proposition; and

WHEREAS, pursuant to California Education Code ("Education Code") Section 15264 et seq. (the "Act"), the Board is specifically authorized, upon approval by two-thirds (2/3) of the members of the Board, to submit to the electorate of the District the question of whether bonds of the District shall be issued and sold for specified purposes pursuant to paragraph (3) of said subdivision (b) of Section 1 of Article XIIIA and subdivision (b) of Section 18 of Article XVI of the California Constitution; and

WHEREAS, the Board desires to make certain findings to be applicable to the within election order and to establish compliance with Proposition 39 and the applicable requirements of the Education Code and the Elections Code of the State (the "Elections Code"), as further specified herein; and

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WHEREAS, pursuant to Section 10403 et seq. of the Elections Code, the Board now deems it appropriate and necessary to request consolidation of the election authorized hereby (the "Election") with any and all other elections to be held on November 8, 2016, and to request the Registrar of Voters (the "Registrar of Voters") of the County of Los Angeles (the "County") to perform certain election services for the District; and

WHEREAS, the proposed Bond Measure (defined below) to be considered at the Election includes requirements for strict accountability, including establishment of a Citizen's Oversight Committee and independent annual financial and performance audits to insure all bond proceeds are used effectively and as promised, with no funds going towards administrator's salaries or pensions;

NOW, THEREFORE, THE BOARD OF TRUSTEES OF SANTA MONICA COMMUNITY COLLEGE DISTRICT HEREBY RESOLVES, DETERMINES, AND ORDERS AS FOLLOWS:

Section 1. Call for Election. The Board hereby orders an election and submits to the electors of the District the question of whether general obligation bonds of the District shall be issued and sold in one or more series from time to time in the aggregate principal amount not to exceed $345,000,000 for the purpose of raising money for construction, reconstruction, rehabilitation and replacement of District facilities, including the furnishing or equipping of District facilities, or the acquisition or lease of real property for District facilities and paying costs incident thereto, as set forth more fully in a ballot proposition approved pursuant to Section 4 below.

Section 2. Order of Election. This Resolution shall stand as the order to the Registrar of Voters to call the Election within the boundaries of the District on November 8, 2016. The Registrar of Voters is hereby requested, pursuant to Section 5322 of the Education Code, to take all steps to call and hold the Election in accordance with law and these specifications.

Section 3. Election Date and Consolidation. The date of the Election shall be November 8, 2016, and the Election shall be held solely within the boundaries of the District. Pursuant to Section 15121 of the Education Code and Part 3 (commencing with Section 10400) of Division 10 of the Elections Code, the Board of Supervisors of the County is requested to order consolidation of the school bond election ordered herein with such other elections as may be held on the same day in the same territory or in territory that is in part the same.

Section 4. Purpose of Election; Ballot Proposition. The purpose of the Election shall be for the voters of the District to vote on a proposition, a full copy of which is attached hereto as Exhibit A (the "Bond Measure"), containing the question of whether the District shall issue the Bonds for the purposes stated therein, together with the accountability requirements of Article XIIIA and the requirements of Section 15272 of the Act. The Registrar of Voters is hereby requested to reprint Exhibit A hereof in its entirety in the voter information pamphlet to be distributed to voters. As required by Elections Code Section 13247, the abbreviated form of the Bond Measure to appear on the ballot appears below and is attached hereto as Exhibit B:

"SANTA MONICA COLLEGE CLASSROOM REPAIR, CAREER TRAINING, HIGHER EDUCATION ACCESS MEASURE. To improve local access to affordable higher education for high school graduates/ adults/ veterans; improve education/ career training in math, science, writing, arts, business; shall Santa Monica Community College District issue $345,000,000 in bonds at legal rates, with citizens oversight/ annual audits, to repair, upgrade, construct, modernize, equip facilities for technology, science/ biotech, college readiness; repair aging, leaky classrooms, remove asbestos, upgrade disabled access, seismic and campus safety?"

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The District's Superintendent/President, Vice President, Business/Administration (or any of their respective designees) is hereby authorized and directed to make any changes to the text of the proposition or its abbreviated form as required to comply with the intent of this Resolution, the requirements of election officials, and requirements of law.

Section 5. The Bonds. (i) The maturity of any bonds issued pursuant to the Bond Measure and under Chapter 1.5, Part 10, Division 1, Title 1 of the Education Code (commencing with Section 15264), as amended, and Article XIIIA shall not exceed twenty-five (25) years and shall bear or accrete interest at a rate not to exceed the maximum legal interest rate per annum, and (ii) the maturity of any bonds issued pursuant to the Bond Measure and under Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, as amended, applicable provisions of the Education Code and Article XIIIA of the California Constitution shall not exceed forty (40) years, or, in the case of bonds, the interest on which is compounded, twenty-five (25) years, and shall bear or accrete interest at a rate not to exceed the maximum legal interest rate per annum.

Section 6. Authority for Election. The authority for ordering the Election is contained in the Act, Article XIIIA, Section 1, paragraph (b), subsection (3) of the California Constitution, and Section 53506 et seq. of the California Government Code. The authority for the specification of this election order is contained in Education Code Section 5322.

Section 7. School Facilities Projects. A list of the specific capital projects (the "Projects") to be funded from the proceeds of the Bonds is set forth in Exhibit A (the "Project List"). As required by Article XIIIA, the Board hereby certifies that it has evaluated safety, class-size reduction and information technology needs of the District in developing the list of capital projects set forth in Exhibit A. The District understands that the costs of administering the Election, managing construction projects and costs of issuance of the Bonds shall be lawful charges against proceeds of sale of the Bonds.

Section 8. Covenants of the Board Upon Approval of the Bonds by the Electorate. As required by Article XIIIA and Section 15278 of the Act, if fifty-five percent (55%) or more of the voters of the District voting on the Bond Measure approve the Bond Measure, the Board shall: (a) Use the bond proceeds only for the purposes of construction, reconstruction, rehabilitation, or replacement of District facilities, including the furnishing and equipping of District facilities, or the acquisition or lease of real property for District facilities, as specifically set forth in Exhibit A, and not for any other purpose, including teacher and administrator salaries/pensions and other District operating expenses; (b) Conduct an annual, independent performance audit to ensure that the Bond proceeds have been expended only on the capital projects listed in Exhibit A until all of the Bond proceeds have been expended; (c) Conduct an annual, independent financial audit of the proceeds from the sale of the Bonds until all of those proceeds have been expended for capital projects listed in Exhibit A; (d) Establish and appoint members to an independent citizens' oversight committee in accordance with Sections 15278, 15280, and 15282 of the Act, which may consist of some or all of the citizens' oversight committee members currently sitting; and (e) Limit the amount of bonds issued pursuant to the Bond Measure so that the tax rate on taxable property located within the District required to repay such bonds will not, based on the District's reasonable expectations at the date of issuance, exceed $25 per $100,000 of assessed value.

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Section 9. Delivery of this Resolution. The Secretary to this Board is hereby authorized and directed to send or hand-deliver a completed and certified copy of this Resolution to each of the Superintendent of Schools of the County, the Executive Officer-Clerk of the Board of Supervisors of the County and the Registrar of Voters no later than August 12, 2016.

Section 10. Tax Rate Statement; Ballot Arguments. Any one of the Superintendent/President of the District, the President of the Board, or their designees, is hereby authorized to execute the Tax Rate Statement attached hereto as Exhibit C and any other required documents and to perform all acts necessary to place the Bond Measure on the ballot. The Tax Rate Statement shall be delivered to the Registrar of Voters on or before August 12, 2016. Any member of the Board is hereby authorized to act as an author of or signer to any ballot argument prepared in connection with the Election, including a rebuttal argument.

Section 11. Consolidation of Election; Election Services. Pursuant to Section 5303 of the Education Code and Section 10002 of the Elections Code, the Board of Supervisors is requested to permit the Registrar of Voters, or other appropriate officials of the County, to render all services necessary in connection with the Election including, but not limited to, publication of a Formal Notice of School Bond Election pursuant to Education Code Section 5363 and related law, the mailing of the sample ballot and tax rate statement (described in Section 9401 of the Elections Code), the opportunity to submit ballot arguments in connection with the Election, the canvassing and certification of the returns of the Election, and other ballot requirements pursuant to Education Code Section 15123, for which services the District agrees to reimburse the County as required by law.

Section 12. Reimbursement of Qualified Project Expenditures. The Board presently intends and reasonably expects to have tax-exempt obligations (the "Obligations") issued on its behalf no later than 18 months of (i) the date of the expenditure of moneys, if any, made with respect to the Projects outlined in the Project List or (ii) the date upon which the Project for which expenditures are to be reimbursed is placed in service or abandoned, whichever is later (but in no event more than 3 years after the date the original expenditure of such moneys is paid), and to allocate an amount of the proceeds thereof not to exceed $10,000,000 to reimbursable expenditures in connection with the Projects, as may be qualified under the provisions of Section 1.150-2 of the Treasury Regulations of the Internal Revenue Service (the "Reimbursable Expenditures"). All of the Reimbursable Expenditures covered by this Section were paid not earlier than 60 days prior to the date of this Resolution or constitute preliminary expenditures within the meaning of Section 1.150-2 of the Treasury Regulations. The Board intends to allocate within 30 days after the date of issue of the Obligations, the proceeds therefrom to reimburse the District for the Reimbursable Expenditures. With respect to the proceeds of the Obligations allocated to reimburse the District for prior expenditures, the Board hereby covenants not to employ an abusive device under Treasury Regulation Section 1.148-10, including using within one year of the reimbursement allocation, the funds corresponding to the proceeds of the Obligations in a manner that results in the creation of replacement proceeds, as defined in Treasury Regulation Section 1.148-1, of the Obligations or another issue of tax-exempt obligations.

The above provisions are made solely for the purpose of establishing compliance with the requirements of said Section 1.150-2 of the Treasury Regulations. This provision does not bind the District or the Board to make any expenditure, incur any indebtedness, or proceed with the financing, acquisition or construction of the Projects.

Section 13. Bond Counsel. The Board hereby approves the retention of Norton Rose Fulbright US LLP as bond counsel in connection with the Election and subsequent issuances of bonds thereunder, pursuant to a contract to be entered into by the District.

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Section 14. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED by the Board of Trustees of the Santa Monica Community College District at a regular meeting thereof held on the 5th day of July, 2016, at Santa Monica, California, at which a quorum of the Board of Trustees was present and acting throughout, by the following vote.

MOTION MADE BY:
SECONDED BY:
STUDENT ADVISORY:
AYES:
NOES: