Commentary on Measure S

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

This campaign was designed by Isom Advisors. 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.

Measure S Question

EXHIBIT A

"To reduce student overcrowding and make safety, security, and health improvements; construct, renovate, modernize and equip classrooms and facilities at North, Valley and View Schools; replace or repair roofs; provide technology improvements for students; and upgrade or replace outdated electrical, plumbing, heating and air conditioning systems, shall Hermosa Beach City School District issue $59,000,000 of bonds at legal interest rates, and have an independent citizens' oversight committee with no money for administrative salaries or taken by the state?"

Bonds - Yes Bonds - No

Argument Against Measure S

VOTE NO ON THIS BOND. It does not examine all district options to create the best plan for our students and community. An investigation of less expensive options, like reprising existing property, has to be done. Hermosa Beach residents and parents deserve a proper cost/benefit analysis of less expensive and logistically sound options before committing to this bond.

This $59,000,000 bond commits over 85% of the school district's bond borrowing capacity for 30 years without an identified plan. The costs that every homeowner and renter will be responsible to repay could be up to $90,000,000 with interest. Previous bonds without well-defined plans have significantly contributed to the current classroom shortage.

The language of the bond tells us nothing, it is vague and anything can happen once it is passed.

There has been a constant stream of misinformation presented to the public. The Facilities and Planning Advisory Committee, FPAC, was tasked to consider only one option, North School, although others exist.

The School District must do a comprehensive traffic study of 100's of car trips a day at rush hour times on major arteries and surrounding narrow streets.

North School is a historically significant building and aligns with the concept to KEEP HERMOSA HERMOSA. The current North School tenants fill a critical need for many community parents, 80% of whom are Hermosa residents. They will be evicted to make room for the district's plan to build a new school for 300 plus elementary school children.

Costs are too high and do not allow any margin of error for unanticipated additional costs. The District needs to do its homework and a thorough investigation to find a more cost effective solution.

VOTE NO ON THIS BOND

Full Text of Measure S

EXHIBIT B

FULL TEXT BALLOT PROPOSITION
OF THE HERMOSA BEACH CITY SCHOOL DISTRICT
BOND MEASURE ELECTION NOVEMBER 3, 2015

The following is the full proposition presented to the voters by the Hermosa Beach City School District.

"To reduce student overcrowding and make safety, security, and health improvements; construct, renovate, modernize and equip classrooms and facilities at North, Valley and View Schools; replace or repair roofs; provide technology improvements for students; and upgrade or replace outdated electrical, plumbing, heating and air conditioning systems, shall Hermosa Beach City School District issue $59,000,000 of bonds at legal interest rates, and have an independent citizens' oversight committee with no money for administrative salaries or taken by the state?"

PROJECT LIST FOR THE BOND MEASURE

The following are the types of projects that may be financed with proceeds of the bonds at the Valley School, the View School and the North School sites:

Renovate and Modernize Existing Classrooms and Buildings, including roofs, walls, windows, doors and hardware, floors, ceilings, access improvements for disabled students and individuals and updated technology, furnishings and equipment to meet curriculum needs.

Renovate, Modernize and Construct Safety and Security Improvements, including fire safety systems, security systems, emergency communication systems, lighting, school entry and access areas, locks, parking and transportation areas, and fencing.

Renovate, Modernize and Construct Basic Infrastructure and Utilities, including roofs, site and building plumbing, sewer, gas, electrical, water, storm drainage, heating, ventilation and air conditioning systems, energy efficiency and water conservation improvements.

Construct, Renovate and Modernize Specialty Classrooms for technology, computers, science, library, art and performing arts, including the acquisition and installation of furnishings and equipment for such uses.

Construct New Classrooms, including removing portable classrooms and constructing, furnishing and equipping permanent classrooms.

Construct or Modernize Multipurpose, Administration and Support Facilities, including space for school and District administration, maintenance and operations and performing arts uses, student and faculty restrooms and access improvements for disabled students and individuals.

Renovate, Modernize and Construct Landscape and Hardscape Improvements, including playgrounds and equipment, turf, planting, irrigation systems, fencing and parking and transportation improvements, including onsite parking, which in the case of the North School may include underground parking.

Renovate, Modernize and Construct Food Service Improvements, including kitchen facilities and equipment and shelters for students to eat lunch.

* * *

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

Each project financed will include its share of architectural, engineering, and similar planning costs, program management, project or construction management, a contingency for unforeseen circumstances, offsite/utility connection costs, and interim housing. Projects also may include the payment of the costs of preparation of all facility planning, facility assessment reviews, environmental studies, construction documentation, plan check, inspection and permit fees, and the acquisition of improvements on the project list that are financed by the District on an interim basis through temporary loans, leases, lease-leaseback, or lease-purchase arrangements. Projects may also include the costs of demolition and reconstruction of existing facilities currently scheduled for modernization, if the Board of Education determines that such an approach would be a more cost effective solution.

The District is eligible to receive State matching funds and intends to aggressively pursue State funding. In the absence of such funding, improvements at each school may be affected and the District may not be able to perform some of the projects listed above.

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

Bond proceeds shall be expended only for the specific purposes identified herein. Proceeds of the bonds may be used to pay or reimburse the District for the cost of District staffCriticalWhat was that they said about no administrative payments? when performing work on or necessary and incidentalCriticalWho do you think gets to decide? to the bond projects. The District shall create an account into which proceeds of the bonds shall be deposited and comply with the reporting requirements of Government Code § 53410.

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

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

Measure S Tax Rate Statement

Hermosa Beach City School District
Tax Rate Statement for
Bond Measure
June 7, 2016 Election

An election will be held in the Hermosa Beach City School District (the "District") on June 7, 2016, to authorize the sale of up to $59 million in general obligation bonds. The following information is submitted in compliance with Sections 9400-9404 of the California Elections Code.

1. The best estimate of the tax rate that would be required 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 2.95 cents per $100 ($29.50 per $100,000) of assessed valuation in fiscal year 2016-17.

2. The best estimate of the tax rate that would be required 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 2.95 cents per $100 ($29.50 per $100,000) of assessed valuation in fiscal year 2021-22.

3. The best estimate of the highest tax rate that would be required to fund this bond issue, based on a projection of assessed valuations available at the time of filing this statement, is 2.95 cents per $100 ($29.50 per $100,000) of assessed valuation in fiscal year 20 16- 17.

4. The best estimate of the total debt service, including principal and interest, that would be required to be repaid if all the bonds are issued and sold is $127 million.

These projections of assessed valuations and tax rates are based on the experience and historical data within the District and are derived from information obtained from official sources. The actual tax rates and the years in which they will apply may vary depending on the timing of bond sales, the amount of bonds sold at each sale and actual assessed valuation in each year. The timing of the bond sales and the amount of bonds sold at any given time will be determined by the needs of the District. Actual assessed valuations will depend upon the amount and value of taxable property within the District as determined in the assessment and the equalization process.

Dated: February 25, 2016

Patricia W. Escalante
Superintendent
Hermosa Beach City School District

Measure S Resolution

RESOLUTION NO. 04:15/16

RESOLUTION OF THE BOARD OF EDUCATION OF THE
HERMOSA BEACH CITY SCHOOL DISTRICT ORDERING
AN ELECTION, AND ESTABLISHING SPECIFICATIONS OF
THE ELECTION ORDER

WHEREAS, the Board of Education (the "Board") has determined that education facilities within the Hermosa Beach City School District (the "District") need to be renovated, modernized, repaired, improved, constructed and equipped to enable the District to improve the health and safety and the quality of education for students in the District; and

WHEREAS, in order to relieve overcrowding within the District's two existing schools the Board has determined that it is in the best interest of students to reopen the North School and construct the new facilities needed for that school; and

WHEREAS, the Board has further determined that it is in the best interest of students to modernize, construct and improve the facilities at the View School and the Valley School, including facilities for District administration; and

WHEREAS, notwithstanding concerted and ongoing efforts by the District to obtain sufficient facility money from the State of California (the "State"), the State has been unable to provide the District with enough money for the District to adequately construct and repair schools to provide an optimal learning environment for all students; and

WHEREAS, in the judgment of the Board, additional facility funding is needed to relieve overcrowding and improve the quality of facilities within the District by means of a general obligation bond; and

WHEREAS, Proposition 46, approved by the voters of the State on June 3, 1986 ("Proposition 46"), amended Section l(b) of Article XIIIA of the California Constitution by adding a provision which exempts from the 1% of full cash value limitation, those ad valorem taxes used to pay for debt service on any bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by voters voting on the proposition; and

WHEREAS, on November 7, 2000 the voters of California approved the Smaller Classes, Safer Schools and Financial Accountability Act ("Proposition 39") which, as of its effective date, reduced the voter threshold for ad valorem tax levies used to pay for debt service or bonded indebtedness to 55% of the votes cast on a school 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 required by Proposition 39 and the Act; and

WHEREAS, the Board desires to submit a proposition to the District's voters at an election to authorize the issuance of general obligation bonds to pay for certain necessary improvements to Valley School, View School and North School; and

WHEREAS, the Board hereby determines, 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 from being wasted or used for administrative salaries or other operating expenses of the District shall be strictly enforced 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 limit per year of $30 per $100,000 of assessed valuation of taxable property; and

WHEREAS, Section 9400 et seq. of the Elections Code of the State of California (the "Elections Code") 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 ballot argument in favor of the proposition to be submitted to the voters at the election; and

WHEREAS, pursuant to the California Elections Code, it is appropriate for the Board to request consolidation of the election with any and all other elections to be held on Tuesday, June 7, 2016, and to request that the Los Angeles County Registrar of Voters perform certain election services for the District;

NOW, THEREFORE, BE IT RESOLVED by the Board of Education of the Hermosa Beach City School District:

Section 1. That the Board, pursuant to Education Code Sections 15100 et seq., 15264 et seq., and Government Code Section 53506, hereby requests the Los Angeles County Registrar of Voters to conduct 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 not to exceed $59,000,000 (the "Bonds") shall be issued and sold for the purpose of raising money for the projects described in Exhibits A and B hereto. Both exhibits are directed to be printed in the voter pamphlet.

Section 2. That the date of the election shall be June 7, 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) that the proceeds of the sale of the Bonds shall only be used for the purposes specified in Proposition 39 and set forth in the ballot proposition and not for any other purpose, including teacher and administrator salaries and other school operating expenses;
2. (b) that the Board, in establishing the projects set forth in Exhibit "B," evaluated the safety, class size reduction and information technology needs of the District;
3. (c) that the Board will cause an annual, independent performance audit to be conducted to ensure that the Bond moneys are expended only for the projects identified in Exhibit "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;
5. (e) that the Board will appoint 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.Elections Code Section 15274; and
6. (f) that the tax levy authorized to secure the Bonds of this election shall not exceed the Proposition 39 limit of $30 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., 15264 et seq., and Government Code Section 53506.

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

Section 6. That the Los Angeles County Registrar of Voters and the Los Angeles County Board of Supervisors are hereby requested to consolidate the election ordered hereby with any and all other elections to be held on June 7,2016 within the District.

Section 7. That the Secretary of the Board is hereby directed to send a certified copy of this Resolution to the Los Angeles County Registrar of Voters no later than March 1 1,201 6.

Section 8. That the maturity of any Bonds issued pursuant to Section 15264 et seq. of the Education Code hereto shall have a maturity not exceeding twenty-five (25) years, and Bonds issued pursuant to Section 53506 of the Government Code shall have a maturity not exceeding the maximum permitted thereunder. The maximum rate of interest on any Bond shall not exceed the maximum rate allowed by Education Code Sections 15 140 to 15 143, as modified by Government Code Section 5353 1.

Section 9. 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. The Board further authorizes the submission of a tax rate statement and primary and rebuttal arguments, as appropriate, to be filed with the Los Angeles County Registrar of Voters by the established deadlines.

Section 10. Pursuant to Section 5303 of the Education Code and Section 10002 of the Elections Code, the Board of Supervisors of Los Angeles County is requested to permit the Registrar of Voters to render all services specified by Section 10418 of the Elections Code relating to the election, for which services the District agrees to reimburse Los Angeles County, such services to include the printing of the Full Text Ballot Proposition set forth in Exhibit "B" in the voter pamphlet, 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 Section 5363 of the Education Code and Section 12112 of the Elections Code.

Section 11. This Resolution shall take effect from and after its date of adoption.

ADOPTED, SIGNED AND APPROVED this 9th day of November, 2015.

/s/Patricia Stower
President of the Board of Education

ATTEST:

/s/Lisa R. Claypoole
Clerk of the Board of Education
Hermosa Beach City School District