Commentary on Measure X

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 X Question

A-1

EXHIBIT A

"EAST COUNTY/GROSSMONT/ CUYAMACA COMMUNITY COLLEGES AFFORDABLE COLLEGE, JOB TRAINING, CAMPUS REPAIR, VETERAN SUPPORT CriticalDisrespecting our veterans by using them as pawns to play on your sympathy. To the district vets are just human shields to hide behind to steal your money with a sympathy vote. How despicable is this? There's not a SINGLE specific school facilities project in the measure -- AT ALL -- let alone one that actually addresses veterans needs. MEASURE. To repair classrooms/ labs, prepare veterans, workers/students for technology, business, science/ other jobs, construct Workforce Training Center, support East County economic development, remove asbestos/lead paint, repair gas, electrical/sewer lines, repair, acquire, construct facilities, sites/ equipment, shall Grossmont-Cuyamaca Community College District issue $348,000,000 in bonds at legal rates, no money for administrators' salaries, independent audits, citizen oversight, all funds used locally?"

Bonds - Yes Bonds – No

Impartial Analysis for Measure X

COUNTY COUNSEL IMPARTIAL ANALYSIS

This measure was placed on the ballot by the governing board of the Grossmont- Cuyamaca Community College District ("District"). This measure, if approved by 55% of the votes cast on the measure, will authorize the District to issue and sell $348,000,000 in general obligation bonds. The sale of these bonds by the District is for the purpose of raising money for the District, and represents a debt of the District. In exchange for the money received from the bond holders, the District promises to pay the holders an amount of interest for a certain period of time, and to repay the bonds on the expiration date.

Voter approval of this measure will also authorize an annual tax to be levied upon the taxable property within the District. The purpose of this tax is to generate sufficient revenue to pay interest on the bonds as it becomes due and to provide a fund for payment of the principal on or before maturity.

Proceeds from the sale of bonds authorized by this measure may be used by the District for the construction, reconstruction, rehabilitation or replacement of community college facilities, including the furnishing and equipping of community college facilities, or the acquisition or lease of real property for community college facilities.

The interest rate on any bond, which is established at the time of bond issuance, could not exceed 12% per annum. The final maturity date of any bond could be no later than 40 years after the date the bonds are issued as determined by the District.

The tax authorized by this measure is consistent with the requirements of the California Constitution. The California Constitution permits property taxes, above the standard one percent (1%) limitation, to be levied upon real property to pay the interest and redemption charges on any bonded indebtedness for, among other things, the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, when approved by 55% of the voters if:

N SD 513-056
PR-35G0-X-2
COUNTY COUNSEL IMPARTIAL ANALYSIS (CONTINUED)

(1) the proceeds from the sale of the bonds are used only for the purposes specified,

(2) the District, by evaluating safety, class size reduction, and information technology needs, has approved a list of specific projects to be funded,

(3) the District will conduct an annual, independent performance audit, and

(4) the District will conduct an annual, independent financial audit.

If a bond measure is approved, state law requires the District to establish an independent citizens' oversight committee. The District has made this ballot measure subject to these requirements.

Approval of this measure does not guarantee that the proposed projects in the District that are the subject of these bonds will be funded beyond the local revenues generated by this measure.

A "YES" vote is a vote in favor of authorizing the District to issue and sell $348,000,000 in general obligation bonds.

A "NO" vote is a vote against authorizing the District to issue and sell $348,000,000 in general obligation bonds.

Argument in Favor of Measure X

N SD 513-058
PR-35G0-X-4

ARGUMENT IN FAVOR OF MEASURE X

East County/Grossmont-Cuyamaca Community Colleges Affordable College, Job
Training, Campus Repair, Veteran Support Measure.

Make College Affordable.

Local students rely on Grossmont-Cuyamaca Community Colleges for college credits and job skills at a reasonable cost and transfer to 4-year colleges and universities.

Assist VeteransCriticalDisrespecting our veterans by using them as pawns to play on your sympathy. To the district vets are just human shields to hide behind to steal your money with a sympathy vote. How despicable is this? There's not a SINGLE specific school facilities project in the measure -- AT ALL -- let alone one that actually addresses veterans needs. Re-Entering the Civilian Workforce.

Thousands of veterans – many returning from war zones – face challenges, including stress and disabilities. Measure X expands Veterans Services and job training to provide support our veterans need.

Train Workers for 21st Century Careers.

Measure X will build new state-of-the-art classrooms and labs, expand access to training programs, and help students learn new skills and find jobs in business, technology, early childhood education, public safety engineering or health care.

Accountability & Transparency.

•  Independent Citizens Oversight Committee.
•  No funds for Administrators' Salaries.
•  Funds must be spent locally.
•  Annual, Independent Audits posted online.
•  Detailed Public Expenditure Plan.

A+ Bond Oversight Transparency – San Diego Taxpayers Association

Critically-Needed Repairs.

Many college buildings, classrooms and labs are old and run-down. Measure X repairs deteriorating classrooms, removes asbestosCriticalUltimate guilt! Are your children going to school in death traps? Has the district identified any facility in the whole district that has a specific, known asbestos problem? Of course not! It's just a ploy to get you to vote yes., insures earthquake safety, upgrades electrical, gas/sewer lines, fixes 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., and replaces outdated plumbing.

An Economic Engine for East County.

Measure X is part of an innovative public-private partnership to bring "New Tech"/21st Century jobs to East County. Presently, East County doesn't have enough good paying jobs or economic opportunities. Many students leave the area to find work.Critical-- beacuse they don't want to be FORCED to pay union dues that are spent on political campaigns.

Prop. X will build a Workforce Training Center as the centerpiece of an economic development zone near Gillespie Field. A skilled workforce on site will attract technology, health care, engineering, biotech/life sciences, and advanced manufacturing firms, providing an economic engine for East County that will create thousands of good paying jobsCritical-- as long as the jobs require union membership..

Interest rates and inflation are at record lows. It will only cost more if we wait.
YES ON MEASURE X
Careers and Affordable College Education for East County

Rebuttal to Argument in Favor of Measure X

N SD 513-059
PR-35G0-X-5

REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE X

This is my personal story about how this bond, and the hidden deals behind it, harm me and my small business in East County.

My name is Mary Smith and I own Interpipe Contracting, Inc. We started in East County 31 years ago. We employ 36 people, most of whom live in East County. My daughters went to college in this District. We helped build the Health and Sciences Complex at Grossmont College and the Student Center at Cuyamaca College.

Despite our past success, and our commitment to pay prevailing wage and provide excellent benefits, this District wants to shut out my workers on this bond. Why? Because buried deep in the paperwork of this bond is a political deal to mandate a unionized workplace.

This political deal prevents my employees from working in their own community simply because they choose not to unionize. It's not fair to discriminate against hard working qualified construction workers based on union status. If this type of discrimination spreads, we will be forced to lay off our local workers. Back-room political deals like this hurt local businesses and motivate industrious young people to leave California.

Please don't endorse this type of discrimination with your vote. Send this bond back to the drawing board and tell these politicians to fix it to include all local workers. We all deserve the right to work in East County.

Please Vote No on Measure X.

NoOnXEastCounty.Com

Argument Against Measure X

N SD 513-060
PR-35G0-X-6

ARGUMENT AGAINST MEASURE X

Vote No on Measure X.

This is too much money, too soon, to give to the politicians on the governing board of the Grossmont-Cuyamaca Community College District. Here is why, in our opinion, East County voters should VOTE NO on this tax increase.

EXPENSIVE – Through bond measures in 2002 and 2012, the District raised property taxes for East County property owners and would do so again through this measure. Unlike other school bond measures which maximize the value and return for taxpayers, interest and principal on these bonds will total over a BILLION DOLLARS that will be paid off by generations over the next thirty years with limited value and returns. This debt is PREMATURE and UNFAIR.

PREMATURE – The District has not yet completed all of the projects that were approved in its previous measure. It is now seeking funds to complete new projects instead of making spending adjustments in other areas. Let's not add this EXPENSIVE and UNFAIR debt on the back of homeowners.

UNFAIR DEALS – The District went back on a promise to the San Diego County Taxpayers Association that it would not negotiate any deal that favored union construction workers over nonunion workers. Language in this new measure also indicates plans to negotiate another agreement with union workers, which does not promote fair and open competition in the construction bidding process and could increase costs. The District's Citizen Bond Oversight Committee advised against these types of unfair labor deals, but the politicians ignored their own oversight board.

PLEASE VOTE NO. This District should honor its past promises before it receives new money.

NoOnXEastCounty.com

Rebuttal to Argument Against Measure X

N SD 513-061
PR-35G0-X-7

REBUTTAL TO ARGUMENT AGAINST MEASURE X

The Opponents have their facts wrong . . .

The Grossmont Cuyamaca-Community College District has been widely lauded for its past bond programs. This summer, the District earned 100% Transparency RatingCriticalIt explicitly doesn't rate effectiveness. It's a meaningless checklist of items that appear (or don't appear) on a district's bond oversight web page. from the San Diego County Taxpayers Association.

In Measure X, Ironclad Taxpayer SafeguardsCriticalTough? Really? Where are they in the language of the measure? You won't find any. It's all hype to get you to vote Yes. have been built in:

All funds, by law, must be spent locally.
Annual, Independent Audits account for every penny.
Independent Oversight Committee, with Taxpayer Representation, insures all funds spent as Promised.
NO funds for Administrators' salaries.
Funding Sacramento CANNOT take away!

That's why the Middle Class Taxpayers AssociationFRAUD ALERT!This is a union front group. Look at what it does, not what it says. It gets its insiders appointed to the taxpayer position on the citizens' bond oversight committee by union-friendly trustees. That way the game is totally rigged. Don't Be Fooled! Meet Some Sneaky Fake Taxpayer Groups In California; Taxpayer Group Pushing to Gut California's Prop. 13 is Union Front Group; College Board in Orange County Lets Unions Take Over Taxpayer Oversight (San Diego's largest taxpayer organization) supports Measure X.

East County's Affordable College
For 50+ years, East County residents have been able to obtain an affordable path to college or careers at Grossmont College (since 1964) and at Cuyamaca College (since 1978). For tens of thousands of our neighbors, Grossmont and Cuyamaca Colleges have been a vital step up the ladder into America's Middle Class.

21st Century Education
Measure X will enable Grossmont and Cuyamaca Colleges to better prepare students for 21st Century careers. Measure X will renovate and upgrade classrooms and build state-of the-art science and computer labs. Measure X will build a new Workforce Training Center to help East County attract high-demand tech jobs.

Skills and Counseling for Veterans.
Measure X will help Grossmont and Cuyamaca Colleges provide skills and counseling for veterans returning to the civilian workforce.

YES on Measure X
Careers and Affordable College Education for East County.

Full Text of Measure X

B-1

EXHIBIT B

FULL TEXT BALLOT PROPOSITION

GROSSMONT-CUYAMACA COMMUNITY COLLEGE DISTRICT

BOND MEASURE ELECTION NOVEMBER 8, 2016

"EAST COUNTY/GROSSMONT/ CUYAMACA COMMUNITY COLLEGES AFFORDABLE COLLEGE, JOB TRAINING, CAMPUS REPAIR, VETERAN SUPPORT CriticalDisrespecting our veterans by using them as pawns to play on your sympathy. To the district vets are just human shields to hide behind to steal your money with a sympathy vote. How despicable is this? There's not a SINGLE specific school facilities project in the measure -- AT ALL -- let alone one that actually addresses veterans needs. MEASURE. To repair classrooms/labs, prepare veterans, workers/students for technology, business, science/ other jobs, construct a Workforce Training Center, support East County economic development, remove asbestos/lead paint, repair gas, electrical/ sewer lines, repair, acquire, construct, facilities, sites/ equipment, shall Grossmont-Cuyamaca Community College District issue $348,000,000 in bonds at legal rates, no money for administrators' salaries, independent audits, citizen oversight, all funds used locally?"

Bonds - Yes Bonds – No

PROJECTS

The Board of Trustees of the Grossmont-Cuyamaca Community College District, to be responsive to the needs of its community, evaluated each of Grossmont College's and Cuyamaca College's urgent and critical facility needs, and its capacity to provide students, and returning Veterans with support and job training facilities, and an affordable education to prepare them for success in college and good-paying jobs. Veteran's support, and the importance of programs to meet the workforce needs of our area, along with safety issues, job training facilities, class size and offerings, and information and computer technology were each considered in developing the scope of projects to be funded. In developing the scope of projects, job training facilities and programs to meet the workforce needs of our area, facilities supporting programs and educational resources for Veterans, and the expansion of opportunities for local students to receive an affordable, quality education, were prioritized. If these facility needs are not addressed now, neither Grossmont College or Cuyamaca College would be able to remain competitive in preparing students for jobs in high demand industries and university transfer. The Board of Trustees determines that Grossmont College and Cuyamaca College MUST:

1. (i) Expand programs to meet the workforce needs of East County, particularly in computer science and technology;
2. (ii) Improve support programs and educational resources for Veterans;
3. (iii) Better prepare students and workers for good-paying jobs;
4. (iv) Partner with local businesses to increase job opportunities in technology, aerospace, defense, manufacturing, math, science, healthcare and other jobs;
5. (v) Ensure that all money raised by this measure will stay in East County to support local students, and cannot be taken away by the State or used for other purposes;

B-2

6. (vi) Adhere to stringent fiscal accountability safeguards including:
1. (a) All expenditures will be subject to annual independent financial audits;
2. (b) No funds will be used for administrators' salaries and pensions.

The following types of projects are authorized to be undertaken at each of the District's locations:

PROVIDE JOB TRAINING AND VETERAN SUPPORT:

Facility Improvements
To Support Economic DevelopmentCriticalWho would have thunk? And you thought college was to educate students. in East San Diego County

Goals and Purposes: Grossmont College and Cuyamaca College provide essential job training for students of all ages, veterans, and local residents. This measure will build new, state-of-the-art classrooms and labs, expanding access to training programs, that help students learn new skills and find better paying jobs in business, technology, nursing, early childhood education, public safety, advanced manufacturing and other high-demand careers.

The Chamber of Commerce and leading economists believe this measure, and the public-private partnership it will create between our community college and local businesses, will be a critical economic engine for our area, including creating thousands of good-paying jobs and increasing investment in our area.

• • Expand and improve facilities which provide job training and support services to military veterans and their families.
• • Upgrade classrooms, science labs and technology classrooms to better prepare students to transfer to four-year colleges and universities.
• • Build a career and job training campus focused on preparing students, Veterans, and workers for technology, aerospace, defense, manufacturing, engineering and other jobs.
• • Upgrade and construct vocational and job training classrooms.
• • Upgrade classroom technology.
• • Upgrade facilities to increase programs to meet the workforce needs of East County.

PROVIDE AN AFFORDABLE EDUCATION
FOR LOCAL RESIDENTS AND VETERANS

Goals and Purposes: The cost to attend the California public universities has risen to at least six times that of attending a community college, therefore, more local students and their families rely on Grossmont College and Cuyamaca College to start their education and save tens of thousands of dollars. Additional funds are needed to ensure local students have the B-3 opportunity to earn collect credits and certifications, learn job skills at a reasonable price, and transfer to four-year universities.

Grossmont and Cuyamaca Community Colleges and their higher education centers have served thousands of military veterans, many of who have recently returned from war zones and face challenges including post-traumatic stress disorder and permanent disability. This measure will upgrade and expand veteran services and job training so returning Service Members receive the support they need to complete their education and enter the civilian workforce.

• • Replace deteriorating gas, electrical and sewer lines.
• • Improve water conservation.
• • Improve facilities for healthcare, nursing and dental programs.
• • Update classrooms and labs for science, technology, engineering and math-related fields.
• • Remove asbestos and lead paint from classrooms and facilities.

* * *

FISCAL ACCOUNTABILITY

This bond measure has strict accountability requirements including:

1. All money will benefit Grossmont College and Cuyamaca College campus and CANNOT BE TAKEN BY THE STATE.

2. NO MONEY can be used for ADMINISTRATOR SALARIES or pensions.

3. Require CITIZENS' OVERSIGHT and yearly audits to ensure all funds are used locally, effectively and as promised.

4. 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 school facilities, including the furnishing and equipping of school facilities, and not for any other purpose, including teacher, faculty and college administrator salaries, pensions and other operating expenses.

5. 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 TO ENSURE THAT FUNDS ARE SPENT AS PROMISED AND SPECIFIED. THE CITIZENS' OVERSIGHT COMMITTEE MUST INCLUDE, AMONG OTHERS, REPRESENTATION 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.

B-4

The listed projects will be completed as neededCriticalYou see? None of these repairs are current needs. They may be needed in the future, though. After years and years of neglect, any facility will fall into disrepair.. Each projectCriticalHere it comes. This is the kitchen sink paragraph. Ask an English teacher to diagram every sentence. See if any two people can agree on what all this gibberish means. It's here so that just in case the District left something out, this covers it, no matter what the District wants to do. is assumed to include its share of furniture, equipment, architectural, engineering, and similar planning costs, program/project management, staff training expenses, a customary contingency, and costs associated with the Total Cost of Ownership of facilities and equipment. In addition to the listed projects stated above, authorized projects also include the acquisition of a variety of instructional, maintenance and operational equipment, including interim funding incurred to advance fund projects from payment of the costs of preparation of all facility planning, fiscal reporting, facility studies, assessment reviews, facility master plan preparation and updatesCriticalFacilities master plans are required by law, whether or not there is a bond. These 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.", environmental studies (including environmental investigation, remediation and monitoring), design and construction documentation, and temporary housing of dislocated college activities caused by construction projects. In addition to the projects listed above, repair, renovation and construction projects may include, but not be limited to, some or all of the following: renovation of student and staff restrooms; replace aging electrical and plumbing systems; repair and replacement of heating, ventilation and air conditioning systems; acquire vehicles; upgrade of facilities for energy efficiencies, including photovoltaic/solar installations; 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; replace or remove outdated buildings and classrooms and construction of new classrooms and support buildings; installation of wiring and electrical systems to safely accommodate computers, technology and other electrical devices and needs; upgrade facilities to meet earthquake safety standards, current environmental sustainability and State compliance standards; repair and replacement of fire alarms, intrusion alarms, emergency communications and security systems; upgrading, resurfacing, replacing or relocating of hard courts, fields, turf and irrigation systems; install sod or artificial turf on athletic fields; upgrade classrooms; build or upgrade facilities; construct, expand or reconfigure facilities to create large lecture classrooms; construct parking lots or structures, upgrade, resurfacing and reconditioning existing parking lots; improve vehicular access and traffic circulation; improve pathways, such as sidewalks, pedestrian crossings; improve drop-off zonesCriticalGee! Are there really college students who get dropped off by their parents at college? Bond counsel must not have picked the right version of the canned kitchen sink paragraph.; repair, upgrade and install interior and exterior lighting systems; replace water lines and valves, gas and sewer lines and other plumbing systems; construct, upgrade, acquire or expand multi-use classrooms and labs, business and computer technology center, child development centers, classrooms and labs, buildings or labs for environmental sciences, outdoor learning, institutional technology, general education, performing arts facilities, physical education/aquatic facilities, gym, locker rooms, courts and court/field lighting, track replacement, support buildings, instructional buildings, athletic fields, dugouts, stadium seating and lighting, improve water conservation and energy efficiency; acquire land; replace or upgrade outdated security and safety systems; replace existing window systems with energy-efficient systems to reduce costs; improve insulation, weatherproofing and roofs to reduce costsCriticalSpending millions to save a few pennies is a gross waste of your money. But it gives the district more money in its general fund to spend on other foolish things.; improve access for the disabled; install and repair fire safety equipment, including alarms, smoke detectors, sprinklers, emergency lighting, and fire safety doors; replace broken concrete walks, deteriorated asphalt; replace/upgrade existing signage, bells and clocks; demolition of unsafe facilities; install new security systems, such as security (surveillance) cameras, burglar alarms, handrails, outdoor lighting, fencing, gates and classroom door locks; create outdoor study and gathering spaces; interior and exterior painting, wall and floor covering replacement; improve drainage systems to prevent flooding; upgrade roadway and pedestrian paths for improved safety and access for emergency vehicles, site parking, utilities and grounds. The project list also includes the refinancing of outstanding lease obligations.CriticalLeases 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." The upgrading of technology infrastructure includes, but is not limited to, build a data center, upgrade classroom technology, expand wireless internet access, acquire portable interface devices, computers, servers, switches, routers, modules, sound projection systems, information systems, printers, digital white boards, upgrade voice-over-IP, communication systems, audio/visual and telecommunications systems, call manager and network security/firewall, Internet connectivity, wireless systems, B-5 technology infrastructure, and other miscellaneous IT and instructional equipment, DATA storage, fiber/copper infrastructure, phones, identity access cards and the creation.

The allocation of bond proceeds may be affected by the final costs of each project. Some projects may be undertaken as joint use projects in cooperation with other local public or non-profit agencies. 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 and construction documents are finalized, construction bids are received, construction contracts are awarded and projects are completed. Based on the final costs of each project, certain of the projects described above may be delayed or may not be completed. Demolition of existing facilities and reconstruction of facilities scheduled for repair and upgrade may occur, if the Board determines that such an approach would be more cost-effective in creating more enhanced and operationally efficient campuses. Necessary site preparation/restoration may occur in connection with new construction, renovation or remodeling, or installation or removal of relocatable classrooms, including ingress and egress, removing, replacing, or installing irrigation, utility lines, trees and landscaping, relocating fire access roads, and acquiring any necessary easements, licenses, or rights of way to the property.

Bond proceeds shall only be expended for the specific purposes identified herein. 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.

Measure X Tax Rate Statement

TAX RATE STATEMENT

REGARDING PROPOSED
$348,000,000
GROSSMONT-CUYAMACA COMMUNITY COLLEGE DISTRICT
GENERAL OBLIGATION BONDS

An election will be held in the Grossmont-Cuyamaca Community College District (the "District") on November 8, 2016, to authorize the sale of up to $348,000,000 in bonds of the District to finance facilities as described in the measure. If such bonds are authorized and sold, principal and interest on the bonds will be payable only from the proceeds of tax levies made upon the taxable property in the District. The following information is provided in compliance with Sections 9400-9404 of the Elections Code of the State of California. Such 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 District's assessed valuation, the following information is provided:

1. The best estimate of the tax rate which would be required to be levied to fund this bond issue during 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 $0.025 per $100 of assessed valuation (or $25.00 per $100,000 of assessed value) for fiscal year 2018-2019.

2. The best estimate of the tax rate which would be required to be levied to fund this bond issue during the first fiscal year after the sale of the last series of bonds, based on a projection of assessed valuations available at the time of filing of this statement, is $0.025 per $100 of assessed valuation (or $25.00 per $100,000 of assessed value) for fiscal year 2027-28.

3. The best estimate of the highest tax rate which would be required to be levied to fund this bond issue, based on a projection of assessed valuations available at the time of filing of this statement, is $0.025 per $100 of assessed valuation (or $25.00 per $100,000 of assessed value), which is projected to be the same in every fiscal year that the bonds remain outstanding.

N SD 513-057
PR-35G0-X-3
TAX RATE STATEMENT (CONTINUED)

4. The best estimate of the total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold is approximately $651,232,875.

Voters should note the estimated tax rate is based on the ASSESSED VALUE of taxable property on the County's official tax rolls, not on the property's market value. In addition, taxpayers eligible for a property tax exemption, such as the homeowner's exemption, will be taxed at a lower effective tax rate than described above. Property owners should consult their own property tax bills and tax advisors to determine their property's assessed value and any applicable tax exemptions.

The attention of all voters is directed to the fact that the foregoing information is based upon projections and estimates only, which are not binding upon the District. The actual debt service, the tax rates and the years in which they will apply may vary from those presently estimated, due to variations from these estimates in the timing of bond sales, the amount of bonds sold and market interest rates at the time of each sale, and actual assessed valuations over the term of repayment of the bonds. The date of sale and the amount of bonds sold at any given time will be determined by the District based on the need for project funds and other factors. The actual interest rates at which the bonds will be sold will depend on the bond market at the time of sale. Actual future assessed valuations will depend upon the amount and value of taxable property within the District as determined by the County Assessor in the annual assessment and the equalization process.

Dr. Cindy Miles
Chancellor
Grossmont-Cuyamaca Community College District

Measure X Agenda Description

Agenda of July 19, 2016 (complete item)

200 OPERATIONS

201 Resolution 17-004 Ordering an Election and Establishing Specifications of the Election Order—Adopt Resolution 17-004 Ordering an Election and Establishing Specifications of the Election Order, requesting the San Diego County Registrar of Voters call an election under the provisions of Proposition 39, and submit to the electors of the Grossmont-Cuyamaca Community College District the question seeking authorization to issue and sell bonds of the District in the aggregate principal amount not to exceed $348 million to finance projects identified in the District’s facilities-related master plans, as recommended by the Chancellor

Governing Board

Grossmont-Cuyamaca Community College District
Telephone: 644-7682

Action

Subject: RESOLUTION 17-004 ORDERING AN ELECTION AND ESTABLISHING SPECIFICATIONS OF THE ELECTION ORDER

Date: JULY 19, 2016

1. PROPOSAL

Adopt Resolution 17-004 Ordering an Election and Establishing Specifications of the Election Order, requesting the San Diego County Registrar of Voters call an election under the provisions of Proposition 39, and submit to the electors of the Grossmont-Cuyamaca Community College District the question seeking authorization to issue and sell bonds of the District in the aggregate principal amount not to exceed $348 million to finance projects identified in the District's facilities-related master plans, as recommended by the Chancellor.

2. INFORMATION IN SUPPORT OF PROPOSAL

a. Summary of Issue

Every year nearly 30,000 local college students turn to Grossmont and Cuyamaca Colleges for a high quality, affordable education to prepare for in-demand jobs or transfer to four-year colleges and universities. Much of East County's workforce is trained or retrained at one of these colleges.

The Grossmont-Cuyamaca Community College District is responsible for providing responsive and progressive college facilities and technology that help our students be successful and stay competitive in their higher education and career goals. Due to escalating costs of higher education, affordable community college education and job training is more critical than ever. Despite ongoing facility maintenance and improvements, our colleges cannot fully accommodate the education and training our students need and the job market requires.

Grossmont and Cuyamaca Colleges are the only public college campuses in East County, and they require ongoing facilities attention. Outdated academic and job-training classrooms and labs need to be modernized and expanded. Students, especially those with disabilities, need better access. Deteriorated roofs, plumbing, heating, ventilating, electrical capacity, and other building systems need to be repaired or replaced. Safety and security systems need continual upgrading. Ever-advancing technology and learning methodologies drive the need for ongoing technology upgrades.

Given these critical needs, a new facilities bond is called for to fund a regional workforce training center and improve college classrooms, labs, technology and equipment at Grossmont and Cuyamaca Colleges. (See Resolution 17-004 attached hereto as Attachment A.)

b. Background

The construction and repairs provided for in Proposition R are complete; Proposition V construction and repairs are underway. However, great needs remain. A review of our 2013 Facilities Master Plan and current facilities status reveals nearly $350 million in unmet facilities needs beyond the scope of our current bond funding.

Districtwide, the new bond will fund an East County Workforce Opportunity Resource Center (WORC) to offer programs for students, veterans, and existing workers to upgrade skills, learn a new trade, or launch a new career. WORC will leverage community partnerships including East County Economic Development Center, Grossmont Union High School District, East County Adult Education, San Diego Workforce Partnership, East County Education Alliance, and local chambers of commerce.

At each College, the bond will enable the building/repair of an Instructional Complex, Child Development Center, and Exercise Science and Athletics facilities, as well as upgrades to fire and safety systems, access control/intrusion alarms, signage and roadways, and projects to save natural resources and utilities costs.

c. Support of Strategic Planning

(1) Efficient and effective operation of the District;

(2) Sound fiscal management, fiscal stability, and accountability.

d. Fiscal Impact

A successful bond measure would generate $348 million of funds restricted to the construction, repair and upgrade of District facilities and related equipment, technologies and infrastructure.

No District funds may be used to advocate for the passage of the bond. District funds may be used to provide information to the public and to register voters as long as there are no District-financed efforts to advocate for the passage of the bond.

3. BOARD ACTION

The Governing Board grants authority to take action as specified in Item One of this docket exhibit.

Recommended: Approved for Consideration:

Sue Rearic, Vice Chancellor Business Services Cindy L. Miles, Chancellor

Docket Item No.
201.1

Measure X Resolution

July 19, 2016, Item 201 ATTACHMENT A

RESOLUTION NO. 17-004

RESOLUTION OF THE BOARD OF TRUSTEES OF THE
GROSSMONT-CUYAMACA COMMUNITY COLLEGE
DISTRICT ORDERING AN ELECTION, AND ESTABLISHING
SPECIFICATIONS OF THE ELECTION ORDER

WHEREAS, Grossmont College and Cuyamaca College are essential community resources which provide outstanding education and career training to students in East County; and

WHEREAS, Grossmont College and Cuyamaca College are critical partners to the East County economy, as local employers rely on both colleges' specialized training programs to train local workers in technology, aerospace, defense, manufacturing, and other industries; and

WHEREAS, notwithstanding such training programs, East County does not have enough good-paying jobs or opportunities for local residents; and

WHEREAS, the Board of Trustees (the "Board") of the Grossmont-Cuyamaca Community College District (the "District"), has determined that certain educational facilities need to be upgraded constructed, renovated, acquired and equipped, in a fiscally prudent manner, to enable the District to maintain Grossmont College and Cuyamaca College as valuable resources that both provide an affordable education to local students and returning veterans each year who desire to learn job skills or transfer to four-year universities and help stimulate the local economy; and

WHEREAS, the costs of attending California's public universities has risen to at least six times that of attending a community college, and more local students and their families rely on their local community college, such as Grossmont College and Cuyamaca College to save tens of thousands of dollars; and

WHEREAS, in today's competitive job environment, the District must continue providing important training and education for local residents of all ages and veterans entering the workforce for better paying jobs, particularly in business, technology, nursing, early childhood education, public safety, advanced manufacturing, and increase opportunities for local students to earn college credits, certifications and job skills at a reasonable price; and

WHEREAS, Grossmont College and Cuyamaca College have served thousands of military veterans, many of whom have recently returned from war zones and face post-traumatic stress disorder and permanent disabilities and need better access to job training programs and facilities, and need to be trained or retrained as they re-enter the civilian workforce; and

WHEREAS, the State is not providing the District with enough money for the District to improve Grossmont College and Cuyamaca College's educational facilities, academic programs and job training centers; and

WHEREAS, the Board has received information regarding the feasibility of a local bond measure and the District's bonding capacity; and

WHEREAS, a local measure will provide funds that cannot be taken away by the State to support local college transfer and job training; and

July 19, 2016, Item 201 ATTACHMENT A

WHEREAS, such a local measure will include mandatory taxpayer protections, including an independent citizens' oversight of all funds and mandatory annual financial audits to ensure funds are spent only as authorized; and

WHEREAS, to ensure the timely and economical completion of all or a portion of projects funded with the proceeds of a local measure, following the passage of the measure, the Board intends to negotiate a project labor agreement with various skilled union trade associations; and

WHEREAS, the Board and District has solicited stakeholder and community input on priorities from students, faculty, staff, business and civic leaders, and the community; and

WHEREAS, in the judgment of the Board, a local, financially prudent, bond measure to provide additional funding for East County job training and workforce preparation for students of all ages, veterans and local residents will be a critical economic engine for East County and create thousands of good paying jobs and increase investment in our area; and

WHEREAS, on November 7, 2000, the voters of California approved the Smaller Classes, Safer Schools and Financial Accountability Act ("Proposition 39") which reduced the voter threshold for ad valorem tax levies used to pay for debt service or bonded indebtedness to 55 percent of the votes cast on a community college district general obligation bond; and

WHEREAS, concurrent with the passage of Proposition 39, Chapter 1.5, Part 10, Division 1, Title 1 (commencing with Section 15264) of the Education Code (the "Act") became operative and established requirements associated with the implementation of Proposition 39; and

WHEREAS, the Board desires to make certain findings herein to be applicable to this election order and to establish certain performance audits, standards of financial accountability and citizen oversight which are contained in Proposition 39 and the Act; and

WHEREAS, the Board determines that, in accordance with Opinion No. 04-110 of the Attorney General of the State of California, the restrictions in Proposition 39, which prohibit any bond money to be used for administrator salaries and other operating expenses of the District shall be strictly monitored by the District's Citizens' Oversight Committee; and

WHEREAS, pursuant to Education Code Section 15270, based upon a projection of assessed property valuation, the Board has determined that, if approved by voters, the tax rate levied to meet the debt service requirements of the bonds proposed to be issued will not exceed the Proposition 39 limits per year per $100,000 of assessed valuation of taxable property; and

WHEREAS, Elections Code Section 9400 et seq. requires that a tax rate statement be contained in all official materials, including any ballot pamphlet prepared, sponsored or distributed by the District, relating to the election; and

WHEREAS, the Board now desires to authorize the filing of a tax rate statement and ballot argument in favor of the proposition to be submitted to the voters at the election; and

WHEREAS, pursuant to the Elections Code, it is appropriate for the Board to request consolidation of the election with any and all other elections to be held on November 8, 2016, and to request the San Diego County Registrar of Voters to perform certain election services for the District; and

July 19, 2016, Item 201 ATTACHMENT A

WHEREAS, in the judgment of the Board, it is advisable to request the San Diego County Registrar of Voters to call an election pursuant to Proposition 39 on the question of whether general obligation bonds shall be issued and sold on behalf of the District for purposes set forth below.

NOW THEREFORE, THE BOARD OF TRUSTEES OF THE GROSSMONT-CUYAMACA COMMUNITY COLLEGE DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. That the Board, pursuant to Education Code Sections 15100 et seq., Sections 15264 et seq. and Government Code Section 53506, hereby requests the San Diego County Registrar of Voters to call an election under the provisions of Proposition 39 and the Act and submit to the electors of the District the question of whether bonds of the District in the aggregate principal amount of $348,000,000 (the "Bonds") shall be issued and sold to raise money for the purposes described in Exhibits "A" and "B" hereto. Both exhibits are directed to be printed in the voter sample ballot pamphlet.

Section 2. That the date of the election shall be November 8, 2016.

Section 3. That the purpose of the election shall be for the voters in the District to vote on a proposition, a copy of which is attached hereto and marked Exhibit "A" and incorporated by reference herein, containing the question of whether the District shall issue the Bonds to pay for improvements to the extent permitted by such proposition. In compliance with Proposition 39 and the Act, the ballot proposition in Exhibit "A" is subject to the following requirements and determinations:

1. (a) the proceeds of the sale of the Bonds shall only be used for the purposes set forth in the ballot measure and not for any other purpose, including faculty and administrator salaries and other college operating expenses;
2. (b) that the Board, in compliance with Proposition 39, and in establishing the projects set forth in Exhibit "B", evaluated the needs of returning veterans, safety, university transfer, enrollment trends, class size reduction, class availability, information technology and technical job training facilities of the District;
3. (c) that the Board will cause to be conducted an annual, independent performance audit to ensure that the Bond moneys get expended for the projects identified in Exhibits "A" and "B" hereto;
4. (d) that the Board will cause an annual, independent financial audit of the proceeds from the sale of Bonds to be conducted until all of the Bond proceeds have been expended and accounted for;
5. (e) that the Board will cause the appointment of a Citizens' Oversight Committee in compliance with Education Code Section 15278 no later than 60 days after the Board enters the election results in its minutes pursuant to Education Code Section 15274. The Citizens' Oversight Committee shall initially consist of at least seven (7) members and at no time consist of less than seven (7) members, with the possible exception of brief periods to fill any unexpected vacancies. The Citizens' Oversight Committee may not include any employee or official of the District or any vendor, contractor or consultant of the District. The Citizens' Oversight Committee shall include all

   July 19, 2016, Item 201 ATTACHMENT A

   of the following: One (1) member who is active in a business organization representing the business community located within the District; One (1) member who is active in a senior citizens' organization; One member who is active in the San Diego County Taxpayers Association. In furtherance of its specifically enumerated purposes, the Citizens' Oversight Committee may engage in any of the following activities relating solely and exclusively to the expenditure of the Proposition 39 bond proceeds:
1. (i) Receive and review copies of the annual, independent financial and performance audits performed by independent consultant(s);
2. (ii) Inspect District facilities and grounds to ensure that Proposition 39 bond revenues are expended in compliance with applicable law;
3. (iii) Receive and review copies of all scheduled maintenance proposals or plans developed by the District;
4. (iv) Review efforts of the District to maximize Proposition 39 bond revenues by implementing cost-saving programs; and
6. (f) that the tax levy authorized to secure the bonds of this election shall not exceed the Proposition 39 limits per $100,000 of taxable property in the District when assessed valuation is projected by the District to increase in accordance with Article XIIIA of the California Constitution.

Section 4. That the authority for ordering the election is contained in Education Code Sections 15100 et seq., 15340 et seq. and 15264 et seq. and Government Code Section 53506.

Section 5. That the authority for the specifications of this election order is contained in Education Code Section 5322.

Section 6. That the San Diego County Registrar of Voters and, the San Diego County Board of Supervisors are hereby requested to consolidate the election ordered hereby with any and all other elections to be held on November 8, 2016 within the District, and pursuant to Elections Code Section 10403, the District acknowledges that the consolidation election will be held and conducted in the manner described in Elections Code Section 10418.

Section 7. That this Resolution shall stand as the "order of election" to the San Diego County Registrar of Voters to call an election within the boundaries of the District on November 8, 2016.

Section 8. That the Secretary of the Board is hereby directed to send a certified copy of this Resolution to the San Diego County Registrar of Voters no later than August 12, 2016.

Section 9. That the bonds shall be issued pursuant to Education Code Section 15300 et seq. or issued pursuant to Government Code Section 53506. The maximum rate of interest on any bond shall not exceed the maximum rate allowed by Education Code Sections 15140 to 15143, as modified by Government Code Section 53531. The Board approves the filing of a Tax Rate Statement and primary and rebuttal arguments, as appropriate, and directs their publication in accordance with the requirements of the Elections Code.

July 19, 2016, Item 201 ATTACHMENT A

Section 10. That the Board requests the governing body of any such other political subdivision, or any officer otherwise authorized by law, to partially or completely consolidate such election and to further provide that the canvass be made by any body or official authorized by law to canvass the returns of the election, and that the Board consents to such consolidation.

Section 11. Pursuant to Education Code Section 5303 and Elections Code Section 10002, the San Diego County Board of Supervisors is requested to permit their Registrar of Voters to render all services specified by Elections Code Section 10418, for which services the District agrees to reimburse San Diego County such services to include the publication of a Formal Notice of School Bond Election and the mailing of the sample ballot and tax rate statement (described in Section 9401 of the Elections Code) pursuant to the terms of Education Code Section 5363 and Elections Code Section 12112.

ADOPTED, SIGNED AND APPROVED this 19th day of July, 2016.

BOARD OF TRUSTEES OF THE GROSSMONT-
CUYAMACA COMMUNITY COLLEGE
DISTRICT

By
President, Board President

Attest:

Secretary

July 19, 2016, Item 201 ATTACHMENT A

STATE OF CALIFORNIA )
)ss
SAN DIEGO COUNTY )

I, Dr. Cindy Miles, do hereby certify that the foregoing is a true and correct copy of Resolution No. ____which was duly adopted by the Board of Trustees of the Grossmont-Cuyamaca Community College District at meeting thereof held on the 19th day of July 2016, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

By
Dr. Cindy Miles, Chancellor