Commentary on Measure F

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, hover overCriticalExample commentary. it to see the commentary.

Measure F Question

EXHIBIT B

BOND MEASURE
(Abbreviated Form)

[Option 1 - Meets Existing Law]

To improve/modernize classrooms and school facilities at Hamilton schools, acquire land for future growth, make health and safety improvements, including new lighting and fire suppression systems, and upgrade/modernize Ag facilities, shall Hamilton Unified School District issue $7,000,000 in bonds, at legal interest rates, levy $6 cents per $100 of assessed value for as long as bonds are outstanding ($407 thousand annually) with taxpayer oversight, audits, no administrator salaries, all money staying local?

Bonds- YES
Bonds- NO

[Option 2 - If AB 195 repealed or stayed before filing deadline]

To improve the quality of education at Hamilton schools, modernize/ renovate outdated classrooms, restrooms and school facilities, acquire land for future growth, make health and safety improvements, including new lighting and fire suppression systems, and upgrade/ modernize Ag facilities for school and community use, shall Hamilton Unified School District issue $7,000,000 in bonds, at legal interest rates with taxpayer oversight, annual audits, no funds for administrator salaries, with all money staying in local schools?"

Bonds- YES
Bonds- NO

B-1 283

Final Ballot Statement

BOND MEASURE
(Abbreviated Form)

To acquire land and facilities for school and educational uses, improve/modernize classrooms and school facilities at Hamilton schools, make health and safety improvements, including new lighting and fire suppression systems, and upgrade/ modernize Ag facilities, shall Hamilton Unified School District issue $7,000,000 in bonds, at legal interest rates, levy $6 cents per $100 of assessed value for as long as bonds are outstanding ($407 thousand annually) with taxpayer oversight, audits, no administrator salaries, all money staying local?

Bonds-Yes

Bonds-No

11-514 *11514*

Impartial Analysis for Measure F

IMPARTIAL ANALYSIS OF COUNTY COUNSEL

MEASURE "F"

The California Constitution provides that school districts may issue general obligation bonds to finance the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities or the acquisition or lease of real property for school facilities with the approval of 55% of the voters of the district voting at an election for that purpose. The California Constitution further provides that the bond measure must include a requirement that the bond proceeds will be used only for the permitted purposes and include accountability requirements.

Approval of Measure "F" would authorize the Hamilton Unified School District (the "District") to issue general obligation bonds of $7,000,000 and that ad valorem taxes be levied upon taxable property within the District to repay the bonded indebtedness. The District's best estimate of the annual average tax obligation is 6 cents per $100.00 of assessed evaluation ($60.00 per $100,000). The actual tax rates and the years in which they will apply may vary depending on the timing of the bond sales, the amount of bonds sold at each sale and actual increases/decreases in assessed valuations. The District estimates that the total amount repayable during the life of the bond, including principal and interest, will be approximately $15.4 million.

The California Constitution requires the listing of specific projects to be funded from the bond revenue and certification that the Board of Trustees has evaluated safety, class size reduction, and information technology needs in the development of that list. The District's Project List can be found in the full text of the Measure. Funds received from the sale of the bonds will be expended to modernize, replace, renovate, expand, construct, acquire, equip and furnish classrooms and school facilities. Examples of authorized projects include, but are not limited to: renovating, repairing, expanding classrooms and school facilities; upgrading classrooms, restrooms, plumbing, play areas and play structures; updating technology and technology infrastructure; replacing wiring and electrical systems; repairing and replacing portable classrooms with permanent classrooms; and acquiring real property.

The Measure provides that no administrators' or teachers' salaries shall be paid from bond proceeds, nor shall such proceeds be used to pay any other operating expenses of the District, however, costs of administering the bond election and costs of issuance of the bonds shall be lawful charges against the bond proceeds.

The Measure provides that a Citizens' Oversight Committee (the "Committee") will be established to ensure that bond proceeds are properly expended. In addition, an annual independent performance and financial audits will be conducted and reported to the Board of Trustees and the oversight committee.

A "YES" vote means that the district will be authorized to issue and sell the bonds.

A "NO" vote means that the District will not be authorized to issue and sell the bonds.

s/Alicia Ekland
Glenn County Counsel

Argument in Favor of Measure F

ARGUMENT IN FAVOR OF MEASURE F

HAMILTON UNIFIED SCHOOL DISTRICT

Our schools are the most important assets in our community and should be our number one priority. From higher achieving students, to training for future jobs, to greater neighborhood safety, quality schools make a difference. While our teachers and staff do their best in educating our children, many classrooms and school facilities in the Hamilton Unified School District are outdated and inadequate to provide students with the facilities they need to succeed. This is why our students need your YES vote on Measure F!

Measure F would allow the District to acquire land and facilities for educational use as well as improve our schools and the quality of education provided to local students. Although our schools have been well maintained, some of our facilities are outdated and do not meet 21st century standards. By investing in our local schools, we can meet today's safety, technological, and educational standards and better our community.

If passed, Measure F will provide funding to make facility improvements at our schools including:

• • Acquiring land and facilities for school and educational use
• • Modernizing/renovating outdated classrooms, restrooms and school facilities
• • Upgrading Ag facilities for school and community use
• • Making handicapped accessibility improvements
• • Improving student access to computers and modern technology

Measure F makes financial sense and protects taxpayers.

• • All funds must be spent locally and cannot be taken by the State.
• • By law, spending must be reviewed and annually audited by an independent citizens' oversight committee.
• • Funds can only be spent to improve Hamilton schools, not for teacher or administrator salaries.

Measure F acquires land and facilities, upgrades inadequate classrooms, improves the education of local students and maintains the quality of our community. That's something we can all support. Please join us and Vote Yes On Measure F!

11-515 *11515*

Argument Against Measure F

No Argument Against Filed.

Full Text of Measure F

EXHIBIT "A"

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

ACCOUNTABILITY SAFEGUARDS

The provisions in this section are specifically included in this proposition in order that the Hamilton Unified School District's voters and taxpayers may be assured that their money will be spent wisely to address specific facilities needs of the Hamilton Unified School 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 Education Code Sections 15264 and following).

Evaluation of Needs. The Board of Trustees has prepared an updated facilities plan in order to evaluate and address all of the facilities needs of the Hamilton Unified School District campus, and to determine which projects to finance from a local bond at this time. The Board of Trustees hereby certifies that it has evaluated safety, class size reduction and information technology needs in developing the Project List.

Limitation on Use of Bond Proceeds. The State of California does not have the power to take locally approved school district bond funds for any State purposes. Proceeds from the sale of 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, or the acquisition or lease of real property for school facilities, and not for any other purpose, including teacher and administrator salaries and other school operating expenses. 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 the bond projects.

Independent Citizens' Oversight Committee. The Board of Trustees shall establish an independent Citizens' Oversight Committee (pursuant to Education Code Section 15278 and following), to ensure bond proceeds are spent only for the school facilities projects listed in the Bond Project List. The committee shall be established within 60 days of the date when the results of the election appear in the minutes of the Board of Trustees.

Annual Performance Audits. The Board of Trustees shall conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the school facilities projects listed in the Project List.

Annual Financial Audits. The Board of Trustees shall conduct an annual, independent financial audit of the bond proceeds until all of those proceeds have been spent for the school facilities projects listed in the Project List.

Special Bond Proceeds Account; Annual Report to Board. Upon approval of this proposition and the sale of any bonds approved, the Board of Trustees shall take actions necessary pursuant to Government Code Section 53410 and following 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 of the District shall cause a report to be filed with the Board no later than December 31 of each year, commencing December 31, 2019, stating (1) the amount of bond proceeds received and expended in that year, and (2) the status of any project funded or to be funded from bond proceeds.

The report may relate to the calendar year, fiscal year, or other appropriate annual period A-1 279 16 as the Superintendent shall determine, and may be incorporated into the annual budget, audit, or other appropriate routine report to the Board.

PROJECT LIST

Bond proceeds will be expended to modernize, replace, renovate, expand, construct, acquire, equip, furnish and otherwise improve the classrooms and school facilities of the District.

The school facilities projects to be funded include, but shall not be limited to:

Acquisition of land

• 0 Acquire land and facilities for school and educational uses

School Health and Safety Improvements, Renovation, Repair, and Upgrade Projects

• 0 Make health and safety improvements, including Federal and State-mandated Americans with Disabilities Act (ADA) accessibility upgrades and as mandated by the Division of the State Architect (DSA) including site access, parking, restrooms, relocation of some existing electrical devices, drinking fountains, playground equipment, etc.
• 0 Modernize outdated classrooms, such as asbestos abatement, new paint, carpet/vinyl, white marker boards, tackable surfaces, increased secure storage capacity for instructional materials and equipment, etc.
• 0 Upgrade outdated restrooms.
• 0 Upgrade, expand, repair,- and/or equip school facilities, such as labs, multi-purpose rooms, food service facilities, auditoriums, libraries, athletic facilities, locker rooms.
• 0 Renovate, repair, expand and/or upgrade the interior and/or exterior of existing classrooms and school facilities, including infrastructure, signage and landscaping improvements.
• 0 Replace old temporary portable classrooms with permanent classrooms.
• 0 Improve energy-efficiency by installing energy-efficient systems including "green" building projects and sustainable building practices to promote energy-efficiency (e.g., Energy Management Systems (EMS), HVAC, solar, electrical, lighting, windows, etc.).
• 0 Federal and State-mandated Occupational Safety & Health Administration (OSHA) safety upgrades including playground areas and playground equipment replacement.
• 0 Update technology and technology infrastructure to improve student access to computers and modern technology.
• 0 Replace inadequate wiring and electrical systems to meet current electrical and accessibility codes, increase capacity, and relieve currently overloaded electrical systems.
• 0 Repair, replace, or upgrade leaky roofs, walls, and floors where necessary.
• 0 Repair, replace, or install plumbing, sewer, and irrigation/sprinkler systems.
• 0 Pave or repave playgrounds and/or parking lots to increase safety.
• 0 Upgrade play areas and play structures to improve student safety.
• 0 Renovate physical education fields and facilities for school and community use.

280 A-2

17
• 0 Repair, replace and/or upgrade paved surfaces, turf, and other grounds to eliminate safety hazards and improve outside instructional areas.

Renovation/Modernization (defined)

For purposes of the Project List, renovation and modernization projects are intended to restore the building systems and infrastructure, weather protections, finishes, and technology, or reallocate and reorganize space, to a condition that will provide a sustainable, functional educational and administrative environment for future years, comparable to new construction.

Renovation projects may include, but are not limited to nor necessarily encompass, all of the following, depending upon the age, condition and needs of each particular school facility:

• 0 upgrade electrical, communication (including data and voice), fire alarm, and similar building systems as well as main power service and distribution, which may include active and passive solar power and heating system acquisition, installation and construction
• 0 replace, repair or upgrade plumbing, piping and drainage systems, including gas and water supply, meters, water heating, and wastewater systems, plumbing fixtures and sinks, etc., within buildings and sites and to connect with city supply and drainage systems
• 0 replace or modify aging heating, ventilation and air cooling systems with energy- efficient heating and air cooling systems (HVAC), including installing energy management systems (EMS);
• 0 replace, modify, upgrade interior lighting and exterior safety/security lighting systems and fixtures, as necessary;
• 0 repair, modify and construct structural elements of the existing structure as necessary;
• 0 replace or repair aging roofs with similar materials or District standard materials;
• 0 replace, repair, install and construct, as necessary, interior spaces: walls, floor and ceiling finishes, doors, door locks, windows, cabinets and casework, and equipment attached to wall surfaces (including white boards, marker boards, tack boards, television mounts, scoreboards, fire extinguishers, kitchen cabinets/equipment, etc.);
• 0 upgrade, modify and construct restroom facilities;
• 0 comply, as necessary, with Americans with Disabilities Act (ADA) and Title 24 requirements;
• 0 refinish the exterior finishes of the school (including stucco, wood and metal trims, wood siding, paint, etc.); replace doors and windows
• 0 modify, expand, separate, convert and construct school support areas, including staff work and lunch areas, to provide adequate, functional environments
• 0 modify, replace and construct functional components of altered or replaced building components (including rainwater leaders, fascias, mansards, etc.)

For any project involving renovation, repair or rehabilitation of a building or the major portion of a building, the District shall be authorized to proceed with new replacement construction instead (including any necessary demolition), if the Board of Trustees determines that replacement and new construction is more practical than rehabilitation and renovation, considering the building's age, condition, expected remaining life, comparative cost, and other relevant factors.

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, A-3 281 18 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 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.

282 A-4

Measure F Tax Rate Statement

EXHIBIT "C"

TAX RATE STATEMENT

An election will be held within the boundaries of Hamilton Unified School District ("District") on November 6, 2018 to authorize the sale of up to $7,000,000 in bonds of the District to finance improvements to educational facilities as described in the measure. If such bonds are approved, authorized and sold, the principal and interest on the bonds will be payable only from the proceeds of ad valorem tax levies made upon the taxable property in the District. The following information is provided in compliance with Sections 9400 to 9404, inclusive, of the California Elections Code. Such information is based upon the best estimates and projections presently available from official sources, upon experience within the District and other demonstrable factors.

1. 1. The best estimate from official sources of the average annual tax rate that would be required to be levied to fund this bond issue over the entire duration of the bond debt service, based on a projection of assessed valuations available at the time of filing of this statement, is 6 cents per $100 of assessed valuation ($60.00 per $100,000 of assessed valuation). The final fiscal year in which it is anticipated that the tax will be collected is 2055-56.
2. 2. The best estimate from official sources of the highest tax rate that would be required to be levied to fund this bond issue, based on a projection of assessed valuations available at the time of filing this statement is 6 cents per $100 of assessed valuation ($60.00 per $100,000 of assessed valuation) It is estimates that such rate would be levied in fiscal year 2019-20.
3. 3. The best estimate from official sources 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 $15.4 million.

Voters should note that the estimated tax rate is based on the assessed value (not market value) of taxable property on the Glenn County official tax rolls. In accordance with Education Code Section 15100, subparagraph (C), the Board has obtained reasonable and informed projections of assessed property valuations that take into consideration projections (if any) of assessed property valuations made by the County Assessor. 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 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 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. Accordingly, the actual tax rate and the years in which such rates are applicable may vary from those presently estimated as above stated.

s/Charles Tracy, Superintendent

Measure F Agenda Description

Agenda of June 6, 2018 (complete item)

HAMILTON UNIFIED SCHOOL DISTRICT
SPECIAL BOARD MEETING
AGENDA
Hamilton High School Library
Wednesday, June 6, 2018

12.0 ACTION ITEMS:

2. Resolution 2017-18-106 Calling for an Election Authorizing the Issuance of General Obligation Bonds of the District at an Election to be Held November 6, 2018. (page 274-284)

Measure F Resolution

HAMILTON UNIFIED SCHOOL DISTRICT
Glenn County, State of California

2017-18

RESOLUTION NO. 17-18-106

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 Hamilton Unified School District (the "District"), within the County of Glenn, 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, 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 primary 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 Hamilton 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 Glenn County Assessor-Clerk, Recorder (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"), 274 11 which constitutes the election order prescribed under California Education Code Section 15122 and Elections Code 13247.

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 is attached hereto 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 2 275 12 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 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 17, 2018, one certified copy of this Resolution to the Board of Supervisors of the County with a copy to the Registrar, together with the Tax Rate Statement attached 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 276 3 13 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 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. Further Authorization. The members of this Board and the Superintendent (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 Label, and modification of the Full Ballot Text, the Ballot Label, and Tax Rate Statement if he or she determines such modifications are necessary and in the District's best interests. This Resolution and all of its Exhibits that are filed with the 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.

4 277

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

PASSED AND ADOPTED this _____ day of _____, 2018, by the Board of Trustees of Hamilton Unified School District, at Hamilton, California, by the following vote:

AYES: Members:

NOES: Members:

ABSENT: Members:

ABSTAIN: Members:

By:
President, Board of Trustees

278 5