Commentary on Measure AA

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

This campaign was designed by a member of the school bonds cartel. We figured out just the right words to get you to you to open up your checkbook.

We'd also like to introduce you to our partners -- bond lawyers, brokers, wealthy investors, architects, management firms, construction companies, and trade unions. We all stand to make a ton of money on these bonds. Our profits come right off the top, before a penny is actually spent on improving the facilities.

We're not just doing it for the money. We like to show off our work in Architectural Digest and other places where the rich and famous congregate.

Remember, we've taken a lot of risk. We gave money to get your governing board members elected, so they'd be sure to remember us when we came around for a hand-out later.

It's just business-as-usual, here in sunny Corruptifornia.

Please don't read the fine print. That's just put in by the lawyers to make what we're going to do to for you legal.

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

Measure AA Question

A-1

EXHIBIT A

"MILPITAS SCHOOL SAFETY AND CLASSROOM UPGRADE MEASURE. To improve safety, provide additional classrooms and science labs to relieve elementary, middle and high school overcrowding; repair leaky roofs; update technology; and repair, construct, acquire classrooms, sites, facilities/equipment, shall Milpitas Unified School District's measure authorizing $284,000,000 of bonds at legal rates, levying $60/$100,000 assessed value, averaging $21,000,000 annually while bonds are outstanding, be approved, with oversight, annual audits, no funds for administrators' salaries, and all funds staying local?"

Bonds – Yes Bonds – No

Impartial Analysis for Measure AA

PR-8404-1-ENG

MEASURE AA

COUNTY COUNSEL'S IMPARTIAL ANALYSIS OF MEASURE AA

Measure AA would authorize issuance of $284,000,000 in bonds to fund school facilities projects in the Milpitas Unified School District (District). Such bonds are financial instruments used by school districts to borrow money that is repaid by a property tax levy. California law allows school districts to propose bond measures to authorize the issuance of bonds. To pass, the Measure must be approved by 55 percent of voters who vote in the election. The Measure was put on the ballot by Board of Education (Board) of the District.

Money generated by the bonds can only be used for the purposes that are set out in the full text of the Measure. The Measure says that the money could be used to:

• • Expand and upgrade classrooms and science labs;
• • Complete a new elementary school;
• • Replace old portable classrooms;
• • Convert existing District administrative offices into new high school facilities; and,
• • Perform basic repairs and safety upgrades on existing school facilities.

A complete list of projects and allowed expenditures is included within the full text of the Measure. The Board has certified that it has evaluated safety, class size, and information technology needs in developing its project list.

Under the California Constitution, money generated by school district bond measures cannot be used for teacher and administrator salaries or pensions, or other school operating expenses. The California Constitution requires the District to hire an independent professional to annually examine how the District is spending bond money. State law also requires the District to establish an independent citizens' oversight committee to ensure that money generated by the bonds is used only for the projects included in the Measure.

The bonds will be repaid from taxes collected on property in the District. The amount of the tax paid will depend on the assessed value of the property. The District's best estimate of the highest tax rate to be collected to repay the bonds is $60.00 per $100,000 of the assessed value of the property. The District's best estimate of the total amount, including interest, that will be required to repay the bonds is $499,899,807. The District estimates that the final year that taxes will be collected to repay the bonds is fiscal year 2046-2047.

A "yes" vote is a vote to authorize the issuance of the bonds in the amount of $284,000,000 to be repaid by collection of taxes on property located within the District.

A "no" vote is a vote to not authorize the issuance of the bonds.

James R. Williams
County Counsel

By: /s/ Danielle L. Goldstein
Deputy County Counsel

Argument in Favor of Measure AA

ARGUMENT IN FAVOR OF MEASURE AA

Vote YES on AA to relieve overcrowding and ensure student safety at Milpitas schools.

We have outstanding schools in Milpitas, as students receive a high-quality education that prepares them to excel in college and compete for future careers.

Our classrooms, however, are overcrowded. Over 3,200 students attend Milpitas High School, which is significantly more students than the school was originally built to accommodate. Plus, our elementary and middle schools need more classrooms, science labs and facilities to ensure students can continue attending their neighborhood school.

In addition, our schools need essential repairs and updates to ensure student safety, such as fixing leaky roofs and windows, improving school security and upgrading lighting and earthquake safety.

Your YES vote is critical. Our students deserve safe and up-to-date classrooms that meet today's educational standards and allow them to succeed in science, technology, engineering, arts, athletics and math.

Vote YES for Milpitas Students:

• • Improve student safety and school security
• • Relieve overcrowding and add classrooms and science labs at Milpitas elementary, middle and high schools
• • Repair leaky roofs and windows
• • Upgrade science labs and classrooms for career technical education and workforce training programs
• • Update learning technology in Milpitas classrooms and science labs to prepare all students for college and 21st-century careers

Strict Fiscal Accountability is Required

• • All funds will be controlled locally and stay in our community—no funds can be taken away by the State
• • Independent citizens' oversight and annual audits will ensure funds are spent as promised
• • No funds can be used for administrator salaries or pensions

Protecting the quality of our local schools helps to protect home values for us all, even if you don't have school-aged children. SC Ballot Type 201 - Page 032

PR-8404-5-ENG
ARGUMENT IN FAVOR OF MEASURE AA-Continued

Join Milpitas parents, teachers, seniors, business leaders and community members in voting YES on AA for safe and up-to-date schools.

Rebuttal to Argument in Favor of Measure AA

REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE AA

Just 6 years ago, voters passed a $95M bond measure to do the following:

Replace "leaky roofs" and "update learning technology" and "provide classrooms for growing student enrollment"

Now they want to "repair leaky roofs" just 6 years after they replaced them?

That's some kind of record for roof deterioration!!!

Everyone knows, especially in Silicon Valley, that technology today will be obsolete in 5-6 years, or sooner.

So, who in their right mind would buy technology, via a bond, and pay it off over 25-30 years? That's insane, right?

Answer: Insanity, if you vote for Measure AA.

The 2012 technology that the district bought in 2012 with that bond money is undoubtedly already been recycled, but the payments, that you're still paying for, will continue on for decades.

Vote NO on Measure AA to stop this fiscal insanity.

And did the student enrollment increase as they projected in 2012?

From 2014-15 school year enrollment was 10,281 and now it's down to 10,260 in 2016-17 school year. Guess their crystal ball was in the shop for repairs.

The district wants to spend $248M to help 10,260 students at a cost of $27,680 per student plus the ADA funds of $10,729 per student that they get every year.

Seriously, that's a lot of money. But, that $248,000,000 has to be paid back, and that will likely double your cost with interest and principle payments.

Just say NO to fiscal insanity, vote NO on Measure AA

For more information: wwwSVTaxpayers.org/2018-meaure-aa

Argument Against Measure AA

PR-8404-6-ENG

ARGUMENT AGAINST MEASURE AA

In 2012, just 6 years ago, voters in the district passed a $95M bond measure to do the following:

Replace "leaky roofs" and "update learning technology" and "provide classrooms for growing student enrollment"

Now they want to "repair leaky roofs" just 6 years after they replaced them?

That's got to be some kind of record for roof deterioration!!!

Everyone knows, especially in Silicon Valley, that technology today will be obsolete in 5-6 years, or sooner.

So, who in their right mind would buy technology, on credit, i.e. via a bond, and pay it off over 25-30 years?

Answer: You, if you vote for Measure AA.

The 2012 technology that the district bought in 2012 with that bond money is undoubtedly already been recycled, but the payments, that you're still paying for, will continue on for decades.

Vote NO on Measure AA to stop this fiscal insanity.

And did the student enrollment increase as they projected in 2012?

From 2014-15 school year enrollment was 10,281 and now it's down to 10,260 in 2016-17 school year. Guess their crystal ball is in the shop for repairs.

The district wants to spend $248M to help 10,260 students at a cost of $27,680 per student plus the ADA funds of $10,729 per student that they get every year.

Seriously, that's a lot of money. But, that $248,000,000 has to be paid back, and that will likely double the cost with interest and principle payments.

Just say NO to fiscal insanity, vote NO on Measure AA

For more information, please visit our website at www.SVTaxpayers.org/2018-measure-aa

Rebuttal to Argument Against Measure AA

REBUTTAL TO ARGUMENT AGAINST MEASURE AA

Don't let the two opponents mislead you. They don't live in Milpitas and they don't understand our community. They clearly haven't taken the time to understand our schools.

As leaders in our community, we recognize the importance of having safe and up-to-date schools for Milpitas students.

Here are the FACTS about Measure AA:

• • Student enrollment has grown dramatically in recent years. Our classrooms and school facilities are overcrowded. We need Measure AA to build more classrooms and ensure students can attend their neighborhood schools.
• • The District will not finance short-lived technology with long-term bonds. Instead, Measure AA will make essential upgrades to repair and upgrade our schools.
• • The District has already made some repairs, but we need Measure AA to complete the next phase of improvements so that our schools are up to today's standards.
• • Here in the heart of Silicon Valley, we know that the requirements for success are rapidly changing. Measure AA will update classrooms and labs to prepare students for college and competitive careers.
• • Local control and accountability are required. Every penny will be locally-controlled and can only be spent on projects outlined in the full ballot text. Independent citizens' oversight and annual audits will ensure that every penny will directly support Milpitas schools.
• • The State won't provide the funding we need to upgrade our schools. The only way we can improve our schools is by voting YES on Measure AA.

Our community is united in supporting Measure AA. Join us—vote YES to relieve overcrowding and update our Milpitas schools.

Full Text of Measure AA

B-1

EXHIBIT B

FULL TEXT BALLOT PROPOSITION
OF THE MILPITAS UNIFIED SCHOOL DISTRICT
BOND MEASURE ELECTION NOVEMBER 6, 2018

The following is the full proposition presented to the voters by the Milpitas Unified School District.

"MILPITAS SCHOOL SAFETY AND CLASSROOM UPGRADE MEASURE. To improve safety, provide additional classrooms and science labs to relieve elementary, middle and high school overcrowding; repair leaky roofs; update technology; and repair, construct, acquire classrooms, sites, facilities/equipment, shall Milpitas Unified School District's measure authorizing $284,000,000 of bonds at legal rates, levying $60/$100,000 assessed value, averaging $21,000,000 annually while bonds are outstanding, be approved, with oversight, annual audits, no funds for administrators' salaries, and all funds staying local?"

PROJECT LIST

The Board of Education of the Milpitas Unified School District is committed to maintaining the quality of education in local schools by providing safe, secure, upgraded classrooms and science labs which keep pace with 21st Century technologies and learning standards. To that end, the Board evaluated urgent and critical facility needs with a goal to relieve classroom overcrowding, as well as safety issues, class size, computer and information technology in developing the scope of projects to be funded. The District conducted a facilities evaluation and received public input in developing this Project List. Teachers, staff, community members and the Board have prioritized classroom overcrowding and key health and safety projects so that the most critical facility needs are addressed.

The Board concluded that the District must improve school safety and relieve overcrowding at schools and expand and upgrade classrooms and science labs. Therefore, in approving this Project List, the Board of Education determines that the District must:

1. (i) Improve student safety and school security;
2. (ii) Relieve overcrowding in Milpitas elementary, middle and high schools by expanding and upgrading classrooms and science labs;
3. (iii) Repairs to leaky roofs;
4. (iv) Update classrooms for career technical education and workforce training programs;
5. (v) ADHERE TO SPECIFIC FISCAL ACCOUNTABILITY SAFEGUARDS SUCH AS:
1. (a) All funds benefit local schools; no funds can be taken away by the State.
2. (b) All expenditures must be subject to annual independent financial audits.
3. (c) No funds can be used for administrators' salaries and pensions.

B-2

4. (d) An independent citizens' oversight committee must be appointed to ensure that all funds are spent only as authorized.

The Project List includes the following types of upgrades and improvements at District schools and sites:

    Burnett Elementary School                           Rancho Middle School
    Calaveras Hills High School                         Randall Elementary School
    Curtner Elementary School                           Rose Elementary School and
    Mabel Mattos Elementary School                      Rose Child Development Center
    Milpitas Adult Education Facility                   Russell Middle School
    Milpitas Airpoint Facility                          Sinnott Elementary School
    Milpitas High School                                Spangler Elementary School
    Milpitas U.S.D. District Office                     Sunnyhills Child Development Center
    Milpitas U.S.D. Maintenance,                        Weller Elementary School
    Operations,Transportation, and Warehouse Facility   Zanker Elementary School
    Murphy Elementary School Site
    Pomeroy Elementary School

RELIEVE SCHOOL OVERCROWDING:

Projects Which Relieve Classroom Overcrowding

Goals and Purposes: Current enrollment at Milpitas High School is 3,200 students, far more than it was originally built for. This measure will fund additional classrooms, science labs and facilities at Milpitas High School to help prevent overcrowding.

This measure will expand the number of elementary and middle school classrooms to relieve classroom overcrowding and help ensure that there is space for students to attend their own neighborhood schools.

• • Expand and upgrade classrooms and science labs.
• • Complete a new elementary school.
• • Replace old portable classrooms.
• • Convert existing District administrative offices into new high school facilities.

BASIC SCHOOL REPAIRS AND SAFETY UPGRADES

B-3

Goal and Purpose: This measure will make necessary repairs and upgrades to our schools, including fixing leaky roofs and windows, maximizing energy and water efficiency, improving student safety and school security, replacing old sewers for flood protection, and upgrading lighting and earthquake safety to provide a safe, healthful learning environment for students.

• • Continue repairs to leaky roofs and windows.
• • Upgrade safety and security systems, including fire alarms, security lighting, fences, door locks and video cameras.
• • Add new classrooms and facilities to avoid overcrowding.
• • Update technology.
• • Maximize energy and water efficiency.
• • Upgrade school facilities to improve accessibility for disabled students and teachers.
• • Repair sewers and drainage systems to prevent flooding.

FISCAL RESPONSIBILITY:

Community Accountability Requirements

Goal and Purpose: To ensure that every penny from this measure benefits local schools and that no funds are taken away by the State or other school districts, this measure will benefit from the following safeguards:

• • Require the establishment of an independent citizen oversight committee to review all expenditures to ensure that funds are used as promised.
• • Require independent financial audits of all expenditures to ensure that fiscally responsible financial controls are followed.
• • Prohibit any funds from being used for administrator salaries or pensions.

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: repair and replace heating, plumbing, sewer and ventilation systems; relocate school sites administrative facilities and convert District-owned sites and commercially leased properties to educational or administrative uses; renovate student and staff restrooms; acquire land and facilities for educational and administrative purposes; upgrade of facilities for energy efficiencies; acquire and install solar panels; acquire vehicles; repair and replace worn-out or leaky roofs, windows, walls, doors, doorframes and drinking fountains; install or upgrade wiring and electrical systems to safely accommodate computers, technology and other electrical devices and needs; construct, expand or upgrade Milpitas adult education and pre-school facilities, as well as District owned sites currently being leased or otherwise not currently used for education purposes; upgrade or construct support facilities, including administrative, physical education, warehousing, multi-purpose rooms, kitchens and food preparation areas, visual and performing arts buildings, media centers and maintenance yards; repair and replace fire alarms, emergency communications and security systems; construct new schools; resurface or replace hard courts, turf and irrigation systems and campus landscaping; expand parking; acquire land; interior and exterior painting and floor covering; demolition; upgrade pools; construct various B-4 forms of storage and support spaces; replace artificial turf; upgrade classrooms; repair, upgrade or install interior and exterior lighting systems; improve or construct playgrounds, athletic fields/courts and play apparatus; replace outdated security fences and security systems, provide indoor space for assemblies, physical education or for rainy day lunch. 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 Project List also includes the acquisition of a variety of instructional, maintenance and operational equipment, the reduction or retirement of outstanding lease obligations and interim or bridge funding incurred to advance fund projects from the Project 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 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 final costs of each project. The District may 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.

FISCAL ACCOUNTABILITY: IN ACCORDANCE WITH EDUCATION CODE SECTION 15272, THE BOARD OF EDUCATION WILL APPOINT A CITIZENS' OVERSIGHT COMMITTEE AND CONDUCT ANNUAL INDEPENDENT AUDITS TO ASSURE THAT FUNDS ARE SPENT ONLY ON DISTRICT PROJECTS 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 B-5 PROMISED AND SPECIFIED. THE CITIZENS' OVERSIGHT COMMITTEE MUST INCLUDE, AMONG OTHERS, REPRESENTATION OF A BONA FIDE TAXPAYERS ASSOCIATION, A BUSINESS ORGANIZATION AND A SENIOR CITIZENS ORGANIZATION. NO DISTRICT EMPLOYEES OR VENDORS ARE ALLOWED TO SERVE ON THE CITIZENS' OVERSIGHT COMMITTEE.

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

Measure AA Tax Rate Statement

PR-8404-4-ENG

TAX RATE STATEMENT

An election will be held in the Milpitas Unified School District (the "District") on November 6, 2018, to authorize the sale of up to $284,000,000 in bonds of the District to finance school facilities as described in the proposition. If the bonds are approved, the District expects to issue the bonds in multiple series over time. Principal and interest on the bonds will be payable from the proceeds of tax levies made upon the taxable property in the District. The following information is provided in compliance with Sections 9400 through 9405 of the California Elections Code.

1. 1. The best estimate 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 assessed valuations available at the time of filing of this statement, is 5.81 cents per $100 ($58.10 per $100,000) of assessed valuation. The final fiscal year in which the tax to be levied to fund this bond issue is anticipated to be collected is fiscal year 2046-47.
2. 2. The best estimate of the highest tax rate that 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 6 cents per $100 ($60.00 per $100,000) of assessed valuation in fiscal year 2024-25.
3. 3. The best estimate of the total debt service, including the principal and interest, that would be required to be repaid if all of the bonds are issued and sold is approximately $499,899,807.

Voters should note that the estimated tax rate is based on the ASSESSED VALUE of taxable property on the County of Santa Clara 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.

Dated: August 1, 2018.

/s/ Cheryl Jordan
Superintendent, Milpitas Unified School District

Measure AA Agenda Description

Agenda of November 28, 2017 (complete item)

Regular Meeting of the Board of Education
Milpitas USD
November 28, 2017 6:00PM

Agenda of December 12, 2017 (complete item)

Regular Meeting of the Board of Education
Milpitas USD
December 12, 2017 5:00PM

Agenda of August 1, 2018 (complete item)

Special Meeting of the Board of Education
Milpitas USD
August 01, 2018 4:00PM
4 p.m. Closed Session 6 p.m. Open Session

Measure AA Resolution

RESOLUTION NO. 2019.5

RESOLUTION OF THE BOARD OF EDUCATION OF
MILPITAS UNIFIED SCHOOL DISTRICT ORDERING AN
ELECTION, AND ESTABLISHING SPECIFICATIONS OF
THE ELECTION ORDER

WHEREAS, the Board of Education (the "Board") of the Milpitas Unified School District (the "District") is committed to maintaining the quality of education and student safety in local public schools by updating classroom technology, expanding, and upgrading classrooms and science labs to meet the demands for science, technology, engineering, arts, athletics and math ("STEAM") instruction; and

WHEREAS, the Board is committed to reducing overcrowding at local neighborhood schools within the District through the construction and addition of classrooms and educational facilities; and

WHEREAS, the Board believes that, in order to provide safe and healthy learning environments for students, basic upgrades to our schools continue to be needed, including the upgrading of security, lighting and energy systems, and ensuring that classrooms are accessible for students and teachers with disabilities; and

WHEREAS, the Board believes that reducing overcrowding will help ensure there will be enough classroom space so students can attend their own neighborhood schools; and

WHEREAS, because the requirements for success in Silicon Valley are rapidly changing, the District needs to upgrade classrooms, labs and learning technology to meet today's educational standards for science, technology, engineering, arts and math instruction; and

WHEREAS, the State of California (the "State") is not providing the District with funding to adequately maintain its educational facilities and academic programs; and

WHEREAS, the Board has concluded that the District's only remedy to improving its educational programs is to secure local funding that the State cannot take away; and

WHEREAS, the Board determines that every penny from this measure shall benefit Milpitas schools, be controlled locally, and be subject to mandatory taxpayer protections, including an independent citizens' oversight committee and audits to ensure funds are spent properly; and

WHEREAS, on November 7, 2000, the voters of California approved the Smaller Classes, Safer Schools and Financial Accountability Act ("Proposition 39") which reduced the voter threshold for ad valorem tax levies used to pay for debt service or bonded indebtedness to 55% 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 that are contained in Proposition 39 and the Act; and

WHEREAS, the Board desires to authorize the submission of a proposition to the District's voters at an election to authorize the issuance of bonds to pay for certain necessary improvements and enhancements to District educational facilities; and

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

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

WHEREAS, 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 relating to the election, including any ballot pamphlet prepared, sponsored, or distributed by the District; and

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

WHEREAS, pursuant to the 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, November 6, 2018, and to request the Santa Clara County Registrar of Voters to perform certain election services for the District;

NOW THEREFORE, THE BOARD OF THE MILPITAS UNIFIED SCHOOL DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. That the Board, pursuant to Education Code Sections 15100 et seq., 15264 et seq., and Government Code Section 53506, hereby requests the Santa Clara 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 of $284,000,000 (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. The District's Superintendent, or designee, is hereby authorized and directed to make any changes to the text of the measure, or to the abbreviated form of the measure, as may be convenient or necessary to comply with the intent of this Resolution, the requirements of election officials, and requirements of law.

Section 2. That the date of the election shall be November 6, 2018.

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", incorporated by reference herein, and 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 propositions in Exhibit "A" and "B" are subject to the following requirements and determinations:

1. (a) that the proceeds of the sale of the Bonds shall be used only for the purposes set forth in the ballot measure and not for any other purpose, including teacher or administrator salaries or other school operating expenses;
2. (b) that the Board, in establishing the projects set forth in Exhibit "B", evaluated the safety, class size reduction, classroom, educational, and information technology needs of the District as well as the importance of the projects to student achievement and high quality instruction;
3. (c) that the Board shall cause an annual, independent performance audit to be conducted to ensure that the Bond monies get spent only for the projects identified in Exhibit "B" hereto;
4. (d) that the Board shall 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 cause the appointment of a Citizens' Oversight Committee in compliance with Education Code Section 15278 no later than 60 days after the Board enters the election results in its minutes pursuant to Education Code Section 15274. The Citizens' Oversight Committee shall consist of at least seven (7) members and at no time consist of less than seven (7) members, with the possible exception of brief periods to fill any unexpected vacancies. The Citizens' Oversight Committee may not include any employee or official of the District or any vendor, contractor or consultant of the District. The Citizens' Oversight Committee shall include all of the following: One (1) member who is active in a business organization representing the business community located within the District; One (1) member who is active in a senior citizens' organization; One (1) member who is active in a bona fide taxpayer association; One (1) member who is a parent of a child in the District schools; One (1) member is both a parent of a child in the District schools and active in a school site council or PTA. In furtherance of its specifically enumerated purposes, the Citizens' Oversight Committee may engage in any of the following activities relating solely and exclusively to the expenditure of the Proposition 39 bond proceeds:
1. (i) Inform the public and the Board of the findings, concerns and determinations of the Committee regarding the expenditure of all bond funds;
2. (ii) Inspect District facilities and grounds to ensure that Proposition 39 bond proceeds are expended in compliance with applicable law;
3. (iii) Receive and review copies of all deferred maintenance proposals or plans developed by the District;
4. (iv) Review efforts of the District to maximize Proposition 39 bond revenues by implementing cost-saving programs;
5. (v) Receive and review copies of the annual, independent financial and performance audits performed by independent consultant(s);
6. (vi) Receive from the Board, within three months of the District receiving the above-described audits, responses to any and all findings, recommendations, and concerns addressed in said audits, and review said responses; and
4
6. (f) that the tax levy authorized to secure the Bonds of this election shall not exceed the Proposition 39 limits per $100,000 of taxable property in the District when assessed valuation is projected by the District to increase in accordance with Article XIIIA of the California Constitution.

Section 4. That the authority for ordering the election is contained in Education Code Sections 15100 et seq., 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 Santa Clara County Registrar of Voters and the Santa Clara County Board of Supervisors are hereby requested to consolidate the election ordered hereby with any and all other elections to be held on November 6, 2018, within the District. Pursuant to Elections Code Section 10403, the Board acknowledges that the consolidation election will be held and conducted in the manner described in Elections Code 10418.

Section 7. That the Secretary of the Board is hereby directed to deliver a certified copy of this Resolution to the Santa Clara County Registrar of Voters no later than August 10, 2018.

Section 8. That any Bonds issued pursuant to the Education Code Section 15264 et seq. hereto or pursuant Government Code Section 53506. The maximum rate of interest on any Bond shall not exceed the maximum rate allowed by Education Code Sections 15140 to 15143, as modified by Government Code Section 53531.

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 of the returns of the election be made by anybody or official authorized by law to canvass such returns, 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 Santa Clara 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 Santa Clara 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 Santa Clara County, such services to include the publication of a Formal Notice of School Bond Election and the mailing of the sample ballot and tax rate statement (described in Section 9401 of the Elections Code) pursuant to the terms of Section 5363 of the Education Code and Section 12112 of the Elections Code.

ADOPTED, SIGNED AND APPROVED this 1st day of August, 2018.

BOARD OF EDUCATION OF THE MILPITAS
UNIFIED SCHOOL DISTRICT

By
President

Attest:

Secretary

STATE OF CALIFORNIA )
)ss
SANTA CLARA COUNTY )

I, Cheryl Jordan, do hereby certify that the foregoing is a true and correct copy of Resolution No. _________, which was duly adopted by the Board of Education of the Milpitas Unified School District at the meeting thereof held on the 1st day of August, 2018, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

By
Secretary