Paradise Unified Schools: Vote Yes on Measure Y Bonds - Butte County - 2018 general Election
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  Welcome    Question    Analysis    Argument in Favor    Argument Against    Full Text    Tax Rate    Agenda    Resolution  

Welcome to the Yes No on Measure Y Campaign

#HonestBallots Movement

Your Butte County Registrar of Voters printed and circulated ballots for this measure that didn't conform to the law. The registrar ignored our Notice and Demand to follow the law. The legislature makes this a crime. (See: How 25 County Registrars Committed A Crime.)

If you want to get really steamed up about the collusion between your Registrar and Paradise Unified Schools to lie and cheat in order to steal your taxes, you can read the letter for yourself.

Do you want to give this district a Thanksgiving surprise? Please call or text me (with #HonestBalllots, Butte, 0629820, and your name) at 909-378-5401 right now for details. It's urgent and very time-sensitive.

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.

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

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Measure Y Question

B-1

EXHIBIT B

BOND MEASURE
(Abbreviated Form)

[Option 1 – Includes AB 195 required terms]

To update classrooms and science labs in schools; perform essential safety/security upgrades; fix leaky roofs, deteriorating plumbing/septic systems; equip classrooms with 21st-century learning technology; replace aging heating/plumbing; and construct/equip classrooms, shall Paradise Unified School District issue $61,000,000 in bonds, at legal interest rates, levy $57.05 per $100,000 of assessed value for as long as bonds are outstanding ($3.5 million annually) with taxpayer oversight, audits, no employee salaries, all money staying local?

Bonds—YES ____ Bonds – NO _____

The following statement was prepared in the hope the legislature would suspend the law (AB-195) that required districts to inform you of the amount of taxes for which you're voting. It's all about deceiving the voters. The school bonds cartel has no shame. It just wants your money. The ends justify the means.

One of the notorious budget trailer bills was amended in May to allow the district to keep you in the dark. Unfortunately for them, Dan Walters got wind of it and castigated the legislature for their sleazy and unscrupulous conduct. The budget trailer bill never came to a vote before the August 10 filing deadline. So the issue is moot.

[Option 2 – If AB 195 repealed or stayed before filing deadline]

To update classrooms and science labs in schools; perform essential safety and security upgrades; fix leaky roofs, deteriorating plumbing and septic systems; equip classrooms with 21st-century learning technology; replace aging heating and plumbing; and construct/equip classrooms, shall Paradise Unified School District issue $61,000,000 in bonds, at legal interest rates with taxpayer oversight, annual audits, no funds for employee salaries, all money staying in local schools?

Bonds—YES ____ Bonds – NO _____

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Impartial Analysis for Measure Y

1

FILED
AUG -3 2018
CANDACE J. GRUBBS, BUTTE CO. CLERK
s/FSS DEPUTY

IMPARTIAL ANALYSIS OF MEASURE Y

Measure Y, a Paradise Unified School District ("District") bond measure, seeks voter approval to authorize the District to issue $61 million of bonds at legal rates. The primary purpose of the bonds is to finance school facilities projects as specified in the measure.

Pursuant to Section 18 of Article XVI and Section 1 of Article XIIIA of the California Constitution, this measure will become effective upon the affirmative vote of at least 55% of the qualified electors voting on this measure.

Education Code section 15100 restricts the use of the proceeds from the bonds sale to items such as building school buildings, improving school grounds, supplying school buildings and grounds with equipment, and acquiring real property for school facilities. In addition, proceeds may only be used for the projects listed in the measure. This measure provides that its proceeds will fund projects outlined in the measure (reproduced in the sample ballot pamphlet) that include, but are not limited to: acquiring, renovating and updating classrooms and other facilities to meet health and safety standards; repairing or replacing leaking roofs, deteriorating plumbing and aging septic systems, outdated heating, electrical, and other utility infrastructure; increasing student access to 215'-century learning technology; and updating physical education facilities. Proceeds may not be used for any other purpose such as administrators' or teachers' salaries or other operating expenses.

If 55% of those who vote on the measure vote "yes", the District will be authorized to issue bonds in the amount of $61 million. Approval of this measure will authorize a levy on the assessed value of taxable property within the District by an amount needed to pay the principal and interest on the bonds each year that the bonds are outstanding.

The Tax Rate Statement for Measure Y in this sample ballot pamphlet reflects the District's best estimates, based upon currently available data and projections, of the property tax rates required to service the bonds. The best estimate of the tax rate required to be levied to fund the bonds is 5.75 cents per $100 of assessed valuation or $57.50 per $100,000 of assessed valuation. The final fiscal year in which the tax is anticipated to be collected is 2053-54. 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 $125,800,000.

The Board of Trustees ("Board") will appoint a citizens" oversight committee to ensure that the bond proceeds are spent for the projects listed in the measure. The Board will also conduct annual, independent performance and financial audits.

2

If 55% of those voting on this measure do not vote for approval, the measure will fail and the District will not be authorized to issue the bonds.

This measure is placed on the ballot by the governing board of the District.

Bruce S. Alpert
County Counsel
s/Bruce S. Alpert

The above statement is an impartial analysis of Measure Y. If you desire a copy of the measure, please call Butte County Elections at 530-538-7761 or 800-894-7761 within Butte County and a copy will be mailed to you at no cost. You may also access the full text of the measure at the following website address: http://buttevotes.net

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Argument in Favor of Measure Y

4

FILED
AUG 16 2018
CANDACE J. GRUBBS, BUTTE CO. CLERK
s/FSS DEPUTY

Argument In Favor Of Measure Y

Vote YES on Measure Y to make critical repairs and improvements at our aging elementary, middle and high schools and ensure all Paradise and Magalia students have access to safe and updated classrooms.

Every penny from Measure Y goes directly to benefit students at Paradise Unified School District schools.

By law, no Measure Y funds may be used for any form of administrator or staff compensation. All funds stay here and cannot be taken away by the State. A Citizens' Oversight Committee and independent audits will ensure all funds are spent as promised.

While local schools have provided students on the Ridge with a quality education for over 80 years, school facilities require health, safety and handicapped accessibility improvements to provide the up-to-date educational environments our students deserve.

We need Measure Y to repair and replace leaky roofs, deteriorating plumbing and old septic systems, as well as modernize classrooms, labs and technology so local students have the resources they need to succeed.

Vote YES on Y: Safe and Modern Classrooms for Every Student

  • 0 Repair or replace leaky roofs, deteriorating plumbing and aging septic systems
  • 0 Upgrade inadequate electrical and security systems
  • 0 Replace outdated heating, ventilation and air conditioning systems
  • 0 Construct and modernize science labs and classrooms
  • 0 Increase student access to computers and modern technology
  • 0 Update physical education facilities for schools and community use

Measure Y will cost the typical homeowner less than $9 per month. This very modest investment will protect the quality of our local schools, which will protect the value of our homes.

Measure Y benefits all schools in Paradise Unified School District, including charter schools.

Join Paradise and Magalia's parents, teachers and respected leaders in supporting our schools and our community. Vote YES on Y.

JON H. WARREN
OWNER - MATTHEWS, s/Jon H. Warren 8/13/18 HUTTON & WARREN, CPA'S

James Dally
Retired Administrator P.U.S.D. s/James Dally 8/13/18 Retired Ex Director Paradise CMA

Jaki Sneed
Jaki's Hilltop Cafe s/Jaki Sneed 8-10-18 Owner Magalia

Maureen Wisener
Account Manager, Adventist Health s/Maureen Wisener 8/6/18

Jim Broshears
Retire Fire Chief s/Jaki Sneed 8/9/18

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Argument Against Measure Y

No Argument Against Filed.

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Full Text of Measure Y

A-1

EXHIBIT "A"

FULL TEXT BALLOT PROPOSITION OF THE
PARADISE UNIFIED SCHOOL DISTRICT BOND ELECTION
FOR NOVEMBER 6, 2018

By approval of this measure by at least fifty-five percent (55%) of the registered voters voting thereon, the Paradise Unified School District shall be authorized to issue and sell bonds of up to $61 million in aggregate principal amount to provide financing for the specific school facilities projects listed below in the Bond Project List, subject to all of the accountability safeguards specified herein.

KEY FINDINGS

  • ? Paradise Unified School District is committed to continuing to provide a strong, high-quality education for all students on the Ridge in local elementary, intermediate and high schools; and
  • ? The District has conducted a project prioritization process with input from parents, teachers, staff, and members of the community to identify the upgrades needed at each school site in order to meet modern safety standards, to meet the District's goals for supporting current academic standards and to address specific priorities at individual school sites; and
  • ? Addressing urgent needs includes completing identified repairs to repair/replace leaky roofs, deteriorating plumbing and aging septic systems, upgrade inadequate electrical and security systems, replace outdated heating, ventilation and air conditioning systems; and
  • ? Improvements are also needed to construct and modernize science labs and classrooms, increase student access to computers and modern technology and update physical education facilities for school and community use; and
  • ? Ensuring all schools provide a high-quality education keeps our property values and community strong; and
  • ? This bond measure will benefit local schools and no funds can be taken away by the State or other school districts, and by law, no money can be used for administrator, employee or staff salaries or pensions; and
  • ? This bond measure requires strict fiscal accountability protections including mandatory annual audits and an independent citizens' oversight committee comprised of local residents to ensure funds are managed and spent properly.
  • ? Specifically, as further described in the Bond Project List, the Board of Trustees desires to:
    • o acquire, renovate, and update classrooms and other facilities to meet health & safety standards
    • o repair or replace leaking roofs, deteriorating plumbing and aging septic systems
    • o repair or replace outdated heating, deteriorating plumbing, aging septic, electrical, and other utility infrastructure
    • o increase student access to 21st-century learning technology
    • o update physical education facilities for school and community use
    • o acquire sites and construct, furnish, renovate, update and equip science labs, classrooms and buildings

A-2

ACCOUNTABILITY MEASURES

The provisions in this section are included in this proposition in order that the voters and taxpayers of the District may be assured that their money will be spent to address specific facilities needs of the District, all in compliance with the requirements of Article XIII A, section 1(b)(3) of the State Constitution, and the Strict Accountability in Local School Construction Bonds Act of 2000 (codified at Section 15264 et seq. of the California Education Code).

Evaluation of Needs. The Board has evaluated the facilities needs of the District and has identified projects to finance from a local bond measure at this time. The Board hereby certifies that it has evaluated safety, class size and information technology needs in developing the Bond Project List.

Independent Citizens' Oversight Committee. The Board shall establish an independent Citizens' Oversight Committee in accordance with Education Code sections 15278-15282 and applicable Board policy, to ensure bond proceeds are expended only for the school facilities projects listed in the Bond Project List. An existing Citizens' Oversight Committee may be empowered by the Board to oversee the expenditure of bond proceeds from this measure. The committee shall be so empowered, or a new committee established, within sixty (60) days of the date when the Board enters the results of the election in its official minutes.

Annual Performance Audit. The Board shall conduct or cause to be conducted an annual, independent performance audit to ensure that the bond proceeds have been expended only on the school facilities projects described in the Bond Project List.

Annual Financial Audit. The Board shall conduct or cause to be conducted an annual, independent financial audit of the bond proceeds until all of those proceeds have been spent for the school facilities projects described in the Bond Project List.

Annual Report to Board. Upon approval of this measure and the sale of any bonds approved, the Board shall take actions necessary to establish an account in which proceeds of the sale of bonds will be deposited. As long as any proceeds of the bonds remain unexpended, the Superintendent shall cause a report to be filed with the Board no later than January 1 of each year, commencing on the first January 1 after bonds have been issued and proceeds spent, stating (1) the amount of bond proceeds received and expended in the past fiscal year, and (2) the status of any project funded or to be funded from bond proceeds. The report may be incorporated into the annual budget, annual financial report, or other appropriate routine report to the Board.

BOND PROJECT LIST

This Bond Project List, which is an integral part of this proposition, describes the specific projects the District proposes to finance with proceeds of the bonds.

Proceeds from the sale of bonds authorized by this measure shall be used only for the construction, reconstruction, rehabilitation, or replacement of school facilities on the Bond Project List, including the furnishing and equipping of said school facilities, or the acquisition or lease of real property for said school facilities, and not for any other purpose, including teacher and administrator salaries and other school operating expenses.

In order to meet all identified facility needs, the District intends to complete projects using a combination of funding sources. These sources may include joint-use funds, A-3 development impact fees, state funds (if available) and other available funds. The District will pursue state matching funds if and when they become available, and if received, they will be used for and mainly applied to projects on the Bond Project List or other high priority capital outlay expenditures as permitted in Education Code section 17070.63(c). No project is dependent on the receipt of state funding for completion.

Specific projects to be funded by the bond measure include, without limitation, the following:

I. COMPLETE BASIC UPGRADES TO MEET CURRENT STUDENT HEALTH AND SAFETY STANDARDS

  • ? Update aging classrooms and District facilities, or acquire and rehabilitate existing facilities, to meet current fire, seismic and safety codes
  • ? Fix and/or replace leaking or deteriorating roofs
  • ? Create ADA-compliant access and safe pedestrian paths of travel at schools
  • ? Repaint school exteriors and interiors and refresh or replace landscaping
  • ? Resurface playgrounds and asphalt areas
  • ? Remove or replace aging portable buildings and classrooms
  • ? Replace aging, outdated and/or deteriorating utility infrastructure, electrical, lighting, plumbing, heating and ventilation (HVAC) systems
  • ? Acquire and install solar energy systems/equipment and upgrade any existing solar equipment for interconnection
  • ? Repair and replace aging student restrooms
  • ? Improve security at schools by providing classroom intrusion alarms, video surveillance cameras, safety locks on classroom doors and exterior lighting for student safety
  • ? Upgrade emergency communications and technology backup systems, signage and fencing
  • ? Improve student safety and traffic circulation by upgrading or providing additional school drop-off areas and parking lots
  • ? Install or repair shade structures on school campuses and create sheltered eating and outdoor learning areas as needed
  • ? Repair, rebuild, equip and furnish school sites in the event of unforeseen emergency

II. IMPROVE SCHOOLS TO MEET CURRENT ACADEMIC STANDARDS AND PROVIDE ACCESS TO MODERN INSTRUCTIONAL TECHNOLOGY

  • ? Provide updated classroom audio/visual technology for content delivery and presentation, which may include projectors and/or large format flat-screen monitors and sound and voice amplification systems
  • ? Acquire computer hardware for student use in the classroom that is current and up-to-date
  • ? Improve school site network infrastructure in order to enhance network-based content and curriculum delivery, which may include:
  • A-4

  • ? Upgrading and improving the routing and network aggregation capabilities for each site in order to support the larger numbers of concurrent network and internet connections
  • ? Upgrading and improving the network access layer switching capabilities in order to support the larger numbers of devices on our school networks as well as supporting the higher speed requirements
  • ? Upgrading and improving classroom wiring for both wired and wireless data communication
  • ? upgrading and improving fiber network cabling between data wiring closets
  • ? Furnish classrooms and learning spaces with flexible furniture
  • ? Build new or transform existing spaces to ensure functional kitchens, multi-use rooms and stages to meet District facility standards for elementary, middle and high schools

III. PROVIDE DEDICATED SPACE FOR SCIENCE, MATH, ENGINEERING, ARTS/MUSIC INSTRUCTION, SUPPORT 21ST-CENTURY LEARNING AND ADDRESS SPECIFIC PRIORITIES AT INDIVIDUAL SCHOOL SITES

  • ? To accommodate 21st-century learning methods, acquire sites and construct, furnish and equip and/or renovate, modernize, upgrade, repair, replace, furnish and equip:
  • ? Classrooms, science labs and school buildings, including relocatable or modular buildings
  • ? school libraries
  • ? track and athletic facilities
  • ? middle and high school performing arts and music spaces and venues
  • ? multipurpose rooms, play areas and outdoor spaces
  • ? food service facilities, community centers, meetings and office spaces, workrooms and parent/student support service areas

Projects listed may be completed at any and all school sites and facilities where such project is determined by the Board to be necessary or required, and projects are authorized to be performed at each and all of the District's schools and sites within the District, including without limitation:

Cedarwood Elementary School, Paradise Elementary School, Pine Ridge School, Ponderosa Elementary School, Paradise Intermediate School, Paradise High School, Ridgeview High School, Honey Run Academy, Paradise eLearning Academy, Paradise Adult School, District Office, Pearson Center

A-5

In recognition of the education of all students on the Ridge, a pro rata portion of the bond proceeds to be spent on moveable assets, on a per in-district student basis, shall be allocated to Achieve Charter, Children's Community Charter, HomeTech Charter, and Paradise Charter Middle School in order to improve charter school facilities in accordance with the Bond Project List and applicable law as follows:

        School                Bond Allocation
Achieve Charter                  $318,331
Children's Community Charter      296,749
HomeTech Charter                  209,073
Paradise Charter Middle           213,120

The listed projects will be completed as needed. Each project is assumed to include its share of furniture, equipment, architectural, engineering, and similar planning costs, program/project management, staff training expenses and a customary contingency for unforeseen design and construction costs. In addition to the listed projects stated above, the list also includes the acquisition of a variety of instructional, maintenance and operational equipment, including the reduction or retirement of outstanding lease obligations and interim funding incurred to advance fund projects from the list; installation of signage and fencing; payment of the costs of preparation of all facility planning, facility studies, assessment reviews, facility master plan preparation and updates, environmental studies (including environmental investigation, remediation and monitoring), design and construction documentation, and temporary housing of dislocated District activities caused by construction projects. In addition to the projects listed above, the repair and renovation of each of the existing school facilities may include, but not be limited to, some or all of the following: renovation of student and staff restrooms; repair and replacement of heating and ventilation systems; upgrade of facilities for energy efficiencies; repair and replacement of worn-out and leaky roofs, windows, walls, doors and drinking fountains; installation wiring and electrical systems to safely accommodate computers, technology and other electrical devices and needs; upgrades or construction of support facilities, including administrative, physical education/athletic facilities and performing arts buildings and maintenance yards; repair and replacement of fire alarms, emergency communications and security systems; resurfacing or replacing of hard courts, turf and irrigation systems and campus landscaping and play fields; expand parking; install interior and exterior painting and floor covering; demolition; and construction of various forms of storage and support spaces, upgrade classrooms, bleachers, kitchens, repair, upgrade and install interior and exterior lighting systems; replace outdated security fences and security systems. The upgrading of technology infrastructure includes, but is not limited to, computers, LCD projectors, portable interface devices, servers, switches, routers, modules, sound projection systems, laser printers, digital white boards, document projectors, upgrade voice-over-IP, call manager and network security/firewall, wireless technology systems and other miscellaneous equipment and software. The allocation of bond proceeds will 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 will not be able to complete 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. Some projects throughout the District, such as gyms, fields and performing arts facilities, may be undertaken as joint use projects in cooperation with other local public or non-profit agencies. 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 A-6 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. Proceeds of the bonds may be used to pay or reimburse the District for the cost of District staff when performing work on or necessary and incidental to bond projects. 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.

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Measure Y Tax Rate Statement

C-1

EXHIBIT C

TAX RATE STATEMENT

An election will be held within the boundaries of Paradise Unified School District (the "District") on November 6, 2018 to authorize the sale of up to $61,000,000 in bonds to finance facilities as described in the proposition. If the bonds are approved, the District expects to sell the bonds in multiple series. Principal and interest on the bonds will be payable from the proceeds of tax levies made upon the taxable property located within the District. The following information is provided in compliance with Sections 9400-9404 of the California Elections Code.

  1. 1. The best estimate of the annual average tax rate which would be required to be levied to fund this bond issue over the entire duration of the bond debt service, based on estimated assessed valuations available at the time of filing of this statement, is 0.0575 cents per $100 ($57.50 per $100,000) of assessed valuation. The final fiscal year in which the tax is anticipated to be collected is 2053-54.
  2. 2. The best estimate of the highest tax rate which would be required to be levied to fund this bond issue, based on estimated assessed valuations available at the time of filing of this statement, is 0.0575 cents per $100 ($57.50 per $100,000) of assessed valuation, which rate would be levied while the bonds are outstanding.
  3. 4. The best estimate of total debt service, including principal and interest, which would be required to be repaid if all the bonds are issued and sold is $125,800,000.

Voters should note that the estimated tax rate is based on the ASSESSED VALUE of taxable property on the County of Butte official tax rolls, not on the property's market value. Property owners should consult their own property tax bills to determine their property's assessed value and any applicable tax exemptions.

Attention of all voters is directed to the fact that the foregoing information is based upon the District's projections and estimates only, which are not binding upon the District. The actual tax rates, debt service 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 dates of sale and the amount of bonds sold at any given time will be determined by the District based on need for construction 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 each sale. Actual future assessed valuation 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.

Signed: ________________________
Michelle John, Superintendent

Dated: _______________, 2018

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Measure Y Agenda Description

Agenda of June 19, 2018 (complete item)

Regular Meeting of the Board of Trustees
Paradise USD
June 19, 2018 5:15PM

16.D.III. Resolution #17/18:33 - School Bond Measure
Speaker:
Michelle John
Minutes:
Joy Tatark said pending Board approval; the school bond measure will then be on the November 2018 ballot.
The public asked about the fiscal impact, interest payments and how many years.
President Alan White said an average Paradise home appraised value at $165,000.00 would pay $99.60 a year.
Joy Tatark said the bonds would be sold in chunks over a period based on the District's needs.
Judy Alderson said she is thrilled all the schools in the District’s concerns will be addressed.
The resolution was approved as presented and to include authorizing the Superintendent to select from one of the two options on how to file the bond measure.

President Alan White called for a brief recess at 7:36 P.M.
The meeting reconvened at 7:48 P.M.
Actions:
Motion

Approve and adopt the resolution. 

Passed with a motion by Judith Peters and a second by Richard Gingery, Jr..
Vote:
Absent Melissa Crick.
Yes Richard Gingery, Jr..
Yes Michael Greer.
Yes Judith Peters.
Yes Alan White.
Quick Summary / Abstract:

The Board is considering a resolution to place a general obligation bond measure on the November 2018 ballot. The bond measure would permit voters within the District to vote upon the issuance of $61,000,000 of bonds of the District. The bond proceeds may be spent for the capital improvements described in Exhibit A to the Resolution. The bonds are repaid from property taxes levied on real property within the District and there would be no fiscal impact to the District’s general fund.

Attachments:
Resolution 17-18.33-Order for Bond Election-Nov 2018-PUSD

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Measure Y Resolution

PARADISE UNIFIED SCHOOL DISTRICT
Butte County, State of California

2017-18

RESOLUTION NO. #17/18:33

RESOLUTION CALLING FOR AN ELECTION AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE DISTRICT AT AN ELECTION TO BE HELD NOVEMBER 6, 2018

_______________________________

WHEREAS, the Board of Trustees (the "Board") of the Paradise Unified School District (the "District"), within the County of Butte, California (the "County"), is authorized to order elections within the District for the purpose of considering, inter alia, bond measures to meet the ongoing capital improvement needs of the District, pursuant to the Constitution of the State of California (the "State") and the Education Code of the State (the "Education Code"); and

WHEREAS, though the District has provided an excellent education to students on the Ridge for over 80 years, our schools now need repairs and updates to maintain academic excellence; and

WHEREAS, the District is committed to improving the quality of education for all elementary, middle and high school students in Paradise and Magalia by repairing deteriorating roofs, plumbing and old septic systems as well as addressing inadequate electrical systems to support today's academic standards and demand for careers in science, engineering and technology; and

WHEREAS, the Board has further determined that schools within the District need to be upgraded, repaired, expanded and equipped in a fiscally prudent manner to improve student safety and campus security by installing security fencing, security cameras and emergency communication systems; and

WHEREAS, accessibility improvements are needed to ensure students with disabilities can learn in a safe and welcoming academic environment; and

WHEREAS, technology must be continually upgraded and aging temporary portable classrooms need to be replaced with permanent classrooms to give local students the resources they need to succeed; and

WHEREAS, whether or not residents have school-aged children, protecting the quality of our schools, the quality of life in our community and the value of our homes is a wise investment; and

WHEREAS, the District has conducted a comprehensive Facilities Master Plan process with input from parents, teachers, staff and members of the community to identify the upgrades needed at each school site in order to meet modern academic and safety standards and to address specific priorities at individual school sites; and

WHEREAS, the State of California is not providing the Paradise Unified School District with enough funding to repair local schools and educational facilities and update learning technology; and

2

WHEREAS, the Board has concluded that a local source of funding that the State cannot take away is the only way to ensure the excellent quality of education in Paradise Unified School District can be maintained; and

WHEREAS, the Board has received information regarding the possibility of a local bond measure and its bonding capacity; and

WHEREAS, the District and leadership at the District have solicited stakeholder and community input on school priorities from parents, teachers, staff, the community and civic leaders; and

WHEREAS, this bond measure requires strict accountability protections including mandatory annual audits and an independent citizens' oversight committee comprised of local residents to ensure funds are managed and spent properly; and

WHEREAS, Section 18 of Article XVI and Section 1 of Article XIII A of the Constitution of the State and Section 15266 et seq. of the Education Code (collectively, "Prop 39") provide for a methodology by which the District may call for an election and, upon approval by 55% or more of the qualified voters voting on the bond measure, issue its general obligation bonds and cause the County to levy an ad valorem property tax to pay debt service on said bonds; and

WHEREAS, this Board has determined it to be in the best interests of the District to call such an election under Prop 39, as further described herein; and

WHEREAS, November 6, 2018 (the "Election Date") meets the consolidation requirements of the Education Code and any County or local measure or election may be consolidated with the Statewide general election then pending; and

WHEREAS, the Board wishes to specify the manner in which the District shall call a bond election on the Election Date and to demonstrate compliance with related requirements of the Constitution, the Education Code and the Elections Code of the State;

NOW, THEREFORE, be it hereby resolved, determined and ordered by the Board of Trustees of the Paradise Unified School District as follows:

Section 1. Recitals. All of the foregoing recitals are true.

Section 2. Determination to Proceed under Prop 39. The provisions of Prop 39 shall control the administration of the election to consider the bond proposition of the District (the "Bond Proposition"), such that a favorable vote of no less than 55% of the qualified voters voting at the election shall constitute approval thereof, and the Board of Trustees of the District (the "Board") hereby declares its intention to meet the pertinent requirements of Prop 39.

Section 3. Bond Proposition. This Board does hereby order and request that the Butte County Clerk-Recorder, Registrar of Voters (herein called the "Registrar") call an election (in the performance of her duties and in the exercise of her power, alone, or with the assistance of such other officers of the County as she may request) to consider the proposition attached hereto as Exhibit A on November 6, 2018 (the "Bond Measure"), which constitutes the election order prescribed under California Education Code Section 15122 and Elections Code 13247.

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The Registrar is hereby requested to reprint Exhibit A in its entirety in the voter information pamphlet to be distributed to voters pursuant to Section 13307 of the Elections Code. As required under Elections Code Section 13247, the abbreviated form of the Bond Measure to appear on the ballot shall be the measure selected by the Superintendent of the District and filed herewith as Exhibit B. Pursuant to Section 18, Article XVI and Section 1, Article XIII A of the Constitution of the State, the foregoing Bond Measure shall become effective upon the favorable vote of no less than 55% of those qualified voters voting on the proposition.

Section 4. Consolidation of Bond Election; Services of County. Pursuant to Section 1258 of the Education Code, the Superintendent of the District is hereby authorized to contract with the Registrar, who is hereby requested and authorized to perform such duties as may be required by law, necessary or useful, or customary and appropriate in the conduct of said Bond Election, including the consolidation of the Bond Election with the general election within the territory of the District being conducted on the Election Date.

The precincts, polling places for said precincts in the County, and persons appointed and designated to serve as election officers for said Bond Election will be those determined, designated, and appointed pursuant to state law by the Registrar. The County is hereby requested to tally and canvass the returns of the election, in accordance with Section 10411 of the Elections Code. The District agrees to reimburse the County for all services related to the Bond Election, such services to include the publication of the Formal Notice and a Tax Rate Statement (described in Section 9401 of the Elections Code) pursuant to the terms of 5363 of the Education Code and Section 12112 of the Elections Code.

Section 5. Approval of Project List; Accountability Safeguards. The District has developed a list of certain capital projects which are a priority in order to meet the obligations of the District to provide education to the children of its residents, as more particularly identified on Exhibit A hereto, which is incorporated herein by this reference. Exhibit A is hereby certified by this Board as the Project List (the "Project List") for funding, either in whole or in part, with the proceeds of the Bonds. This certification of the Project List shall not be interpreted by and does not constitute an official approval of any listed project for the California Environmental Quality Act ("CEQA") or other purposes, but only as a statement of present intention of this Board. Furthermore, the listing of a capital improvement on the Project List does not imply any particular prioritization among such improvements, which remains the province of the Board by subsequent action. Notwithstanding the foregoing, only those acquisitions and other capital improvements included on the Project List may be funded, in whole or in part, with the proceeds of the Bonds. Additional moneys may be obtained for listed projects, in supplementation of the Bond proceeds, from any lawful source of moneys.

The Board hereby confirms that it has, in the development of the Project List appended hereto, evaluated and taken into consideration safety, class size reduction and information technology needs.

Section 6. Citizens' Oversight Committee. Pursuant to Section 15278 et seq. of the Education Code, within 60 days following the certification by this Board of the official results of the Bond Election by the County, this Board is required to appoint a Citizens Oversight Committee (the "Committee") to insure the District's compliance with the foregoing restrictions and to perform the duties established under the Education Code for such committees. To assist the Committee in its statutory obligations, the District shall cause to be conducted an annual independent performance audit and an annual independent financial audit on the expenditure of Bond proceeds; the audits shall be performed under contract with appropriate persons or firms as shall be subsequently 4 brought for approval before this Board. The financial audit may be consolidated with the annual audit of the District's financial statement and may be performed by the same accounting firm, without further approval by this Board.

The results of the annual audits performed hereunder shall be reported to the Board and to the Committee at least annually, and more often, if the Board shall so direct.

Section 7. No Administrators' or Teachers' Salaries to Be Paid from Bond Proceeds. In accordance with Prop 39, the Board hereby confirms that no administrators' or teachers' salaries shall be paid or reimbursed, in whole or in part, from Bond proceeds, nor shall such proceeds be used to pay any other operating expenses of the District. Notwithstanding the foregoing, costs of administering the Bond Election and costs of issuance of the Bonds shall be lawful charges against Bond proceeds.

Section 8. Other Terms of the Bonds. 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 of the California Constitution ("Article XIIIA") shall not exceed twenty-five (25) years as to maturity and shall bear interest at a rate not to exceed the maximum legal interest rate per annum. 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 shall not exceed the applicable legal limits as to maturity, or, in the case of bonds the interest on which is compounded, the maturity shall not exceed twenty-five (25) years, and shall bear or accrete interest at a rate not to exceed the maximum legal interest rate.

Section 9. Approval of Election Consolidation; Delivery of Order of Election. The Clerk of the Board is hereby directed to deliver, no later than July 13, 2018, one certified copy of this Resolution to the Registrar, together with the Tax Rate Statement attached hereto as Exhibit C and executed by the Superintendent of the District.

Section 10. Ballot Arguments. The members of the Board, or any one member or group thereof, are hereby authorized, but not directed, to file a formal Argument in Favor of the Bond Measure given above, with the Registrar within the time limits established for such arguments by the Registrar.

Section 11. Retention of Consultants. The District hereby confirms the hiring of consultants to provide for special services in connection with the proposed issue(s) of Bonds which may be authorized at the Election, to wit, (i) the law firm of Dannis Woliver Kelley as Bond Counsel to the District ("Bond Counsel") and (ii) the financial advisory firm of Isom Advisors Inc., a division of Urban Futures Inc., as Financial Advisor to the District (the "Financial Advisor"), upon conditions as may be set forth in the respective fee agreements heretofore negotiated and executed on behalf of the District by the Superintendent.

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 within 18 months of the date of the expenditure of moneys on the Projects outlined in the foregoing Project List or the date upon which a Project 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 not to exceed 10% of the proceeds thereof to the reimbursable expenditures in connection with the Project, 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 Resolution were paid not earlier than 60 days prior to the date 5 of this Resolution. The Board intends to allocate within 30 days after the date of issue of the Obligations the proceeds there from 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 issuer of tax-exempt obligations.

The above provision is 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 Project.

Section 13. Ratification. All actions heretofore taken by the officers, or their respective designees, employees and agents of the Board and the District in connection with the financing of the facilities on the Project List are hereby ratified and confirmed. The officers and their designees, the employees and agents of the Board and the District are hereby authorized to take any and all actions in connection with the financing of said facilities and as may be necessary and consistent with the purposes of this Resolution.

Section 14. Authorization of Further Acts. The members of this Board, the Superintendent, and the Assistant Superintendent, Business Services of the District (each, a "District Representative") are hereby authorized and directed, individually and collectively, to do any and all things that they deem necessary or advisable in order to effectuate the purposes of this Resolution, including selection of a final Ballot Measure. This Resolution and all of its Exhibits that are filed with the County Registrar by a District Representative shall constitute the final, binding ballot measure of the District and such submitted measure shall be deemed ratified and approved by the Board.

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Section 15. Effective Date. This Resolution shall take effect immediately upon its adoption by the Board.

PASSED AND ADOPTED this 19th day of June, 2018, by the Board of Trustees of Paradise Unified School District, at Paradise, California, by the following vote:

AYES: Members: ____________________________________________

NOES: Members: ____________________________________________

ABSENT: Members: __________________________________________

ABSTAIN: Members: _________________________________________

By:______________________________________
Alan White, President, Board of Trustees

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