Santa Clara Unified Schools: Vote Yes on Measure BB Bonds - Santa Clara County - 2018 general Election
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  Welcome    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution  

Welcome to the Yes No on Measure BB Campaign

#HonestBallots Movement

Your Santa Clara 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 Santa Clara 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, Santa Clara, 0635430, 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 Government Financial Strategies (Lori Raineri). 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 BB Question

Exhibit A-1
79278v3 / SANCLARUSD.35.1

EXHIBIT A-1

BALLOT MEASURE
ABBREVIATED FORM*


To construct classrooms, labs, and school libraries to support student achievement, college readiness, and career training in math, science, engineering, technology, and arts; acquire, renovate, construct and equip facilities to improve older schools; to fix deteriorating roofs, plumbing and electrical systems, shall Santa Clara Unified School District issue $720 million in bonds, raising approximately 5 cents/$100 of assessed value ($45 million annually) for 32 years to improve local schools, with independent citizen oversight, and all money staying local?

Bonds—Yes Bonds—No


*As required pursuant to Education Code Section 5322 and Elections Code Section 13247.

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Impartial Analysis for Measure BB

PR-8405-1-ENG

MEASURE BB

Approval of Measure BB does not guarantee that the proposed project or projects in the Santa Clara Unified School District that are the subject of bonds under Measure BB will be funded beyond the local revenues generated by Measure BB. The school district's proposal for the project or projects may assume the receipt of matching state funds, which could be subject to appropriation by the Legislature or approval of a statewide bond measure.

COUNTY COUNSEL'S IMPARTIAL ANALYSIS OF MEASURE BB

Measure BB would authorize issuance of $720,000,000 in bonds to fund school facilities projects in the Santa Clara 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 Trustees (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 ballot question states that the money could be used, among other things, to:

  • • Construct classrooms, labs, and school libraries;
  • • Acquire, renovate, construct, and equip facilities to improve older schools; and
  • • Fix deteriorating roofs, plumbing, and electrical systems.

A complete list of the specific projects and allowed expenditures is included within the full text of the Measure. The Board certifies that it has evaluated safety, class size, and information technology needs in developing its project list. According to the Measure, the District intends to complete projects using a combination of funding sources including, but not limited to, joint-use funds, development impact fees, state funds, and other funds.

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 $48.78 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 $1,448,643,639. The District estimates that the final year that taxes will be collected to repay the bonds is fiscal year 2050-2051.

COUNTY COUNSEL'S IMPARTIAL ANALYSIS OF
MEASURE BB-Continued

A "yes" vote is a vote to authorize the issuance of the bonds in the amount of $720,000,000 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 SC Ballot Type 193 - Page 036

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Argument in Favor of Measure BB

ARGUMENT IN FAVOR OF MEASURE BB

Getting into college and competing for high-paying jobs is more challenging every year. Vote Yes on Measure BB to ensure students in Santa Clara Unified School District have access to the education, facilities, and technology they need to succeed.

Santa Clara Unified School District works hard to upgrade all of its schools to provide the facilities and technology to support students' 21st-century learning. Recent improvements include new labs at Santa Clara High School and a new elementary school focused on science, technology, engineering, art, and math.

But more must be done. Some schools have been upgraded to current standards, but most of our 28 schools have not. Measure BB will allow SCUSD to make critical upgrades to classrooms and student safety for ALL of our students.

Measure BB will:

  • • Build science and engineering labs and career technical education facilities so students are prepared for college and in-demand careers.
  • • Repair and replace leaky roofs, old rusty plumbing, and faulty electrical and air conditioning systems.
  • • Upgrade older schools so they meet the same safety and academic standards as newer schools.
  • • Provide the facilities and technology needed to support high-quality instruction in science, technology, engineering, art and math.
  • • Improve access to school facilities for students with disabilities.
  • • Secure school campuses.

SCUSD has delivered previous bond projects on time and under budget, and allowed its parcel tax to expire, saving taxpayer dollars.

Measure BB will continue this tradition of fiscal discipline. NO funds can be spent on administrators' salaries or pensions, and an Independent Citizens' Oversight Committee and mandatory audits ensure funds are spent properly. All funds must stay local to benefit SCUSD schools and students only.

Whether you have children in school or not, protecting the quality of our local public education is a wise investment for your property values and community. SC Ballot Type 193 - Page 039

PR-8405-5-ENG
ARGUMENT IN FAVOR OF MEASURE BB-Continued

Stand with local businesses, civic leaders, teachers, parents, and neighbors. VOTE YES ON MEASURE BB.

SupportSantaClaraSchools.org

/s/ Teresa O'Neill
Santa Clara City Councilmember

/s/ Nicholas Kaspar
President/CEO, Santa Clara Chamber of Commerce

/s/ Corinne Sanfilippo
63-year Santa Clara Resident, National Parent Teacher Association Member

/s/ Jim Van Pernis
Chair, SCUSD Bond Oversight Committee

/s/ Shanta Dominguez
Parent, Community Volunteer

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Rebuttal to Argument in Favor of Measure BB

REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE BB

SCUSD gets 32% of our base property taxes ($322 of the $1,000 per $100,000 assessed value) plus $70.70 per $100,000 from four existing bonds. Measure BB adds another $50 per $100,000 for 32 years. That's $440.70 per $100,000, or $2,203.50 for the average $500,000 home in just the first year. With annual 2% increases in assessed value, a property worth $500,000 will pay more than $11,000 in Measure BB taxes over 32 years.

Measure BB's $720 million in bond principal balloons into $1,448,643,639 considering SCUSD's debt ratio of 2:1.

California's Constitution is clear: bond measures must include "A list of the specific facilities projects to be funded." Measure BB contains no guaranteed specific projects. This repeats the vague wording of SCUSD's 2014 bond, in which the district did not keep promises to build new schools and reopen closed schools. Measure BB asks us to pay for projects already paid for through prior bonds.

Some Measure BB items are deferred maintenance projects; Education Code requires school districts to use deferred maintenance funds for such projects, not bonds.

Although the large influx of students predicted by SCUSD in 2014 did not occur, over the last 5 years the district's general fund revenues and spending doubled. The district is once again deficit spending; this does not demonstrate fiscal discipline.

Increased bond debts do not increase student achievement. Despite $819 million in bonds since 2004, student outcomes have held steady. Measure BB serves special interests, not students.

Please vote no on Measure BB.

FOR MORE INFORMATION VISIT WWW.SCCLP.ORG

/s/ Jennifer Imhoff
Chair, Libertarian Party of Santa Clara County

/s/ Mark Hinkle
President, Silicon Valley Taxpayers Association

/s/ Christine Koltermann
Former President, SCUSD Board of Education

/s/ Ketra Oberlander
District Resident, Retiree SC Ballot Type 193 - Page 040

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Argument Against Measure BB

PR-8405-6-ENG

ARGUMENT AGAINST MEASURE BB

Can you afford a 5% increase in your assessed value property taxes for the next 32 years? Measure BB seeks to increase our current bond taxes from $70.70 per $100,000 to $132.80 per $100,000 of assessed value, an increase of 60% in SCUSD bond taxes. Our community's total additional debt burden from Measure BB will be about $1,448,643,639 over 32 years, including bond principal, financing, and interest.

There are no exemptions for anyone from this tax, regardless of ability to pay. For the current average assessed value of $500,000, Measure BB increases SCUSD bond taxes from $414 to $664 in the first year; the total will rise each year with the allowable 2% Prop 13 increase in assessed value.

Currently, we have 4 SCUSD bonds on our property taxes, including $819 million in bonds added since 2004. Measure BB will be SCUSD's 5th bond, and the 18th additional assessment on our property taxes. Families are moving away due to high housing costs; Measure BB increases our already onerous taxes.

By state law, bond measures must include a specific list of projects'. Measure BB gives a laundry list of possible projects, without guarantees or prioritization; many projects are duplicates of projects named in prior bonds.

We expect transparency from the district regarding spending of our bond dollars. While an oversight committee and annual audits are promised for each bond, most of the bond audits and oversight meeting minutes are missing from the district's website. We currently can't tell how our bond dollars are being spent.

While paying off 4 district bonds already on our property taxes, do we have room to pay for a 5th bond? You can be for students, for schools, and against a burdensome new bond we can't afford. Please vote No on Measure BB.

/s/ Jennifer Imhoff
Chair, Libertarian Party of Santa Clara County

/s/ Mark Hinkle
President, Silicon Valley Taxpayers Association

/s/ Christine Koltermann
Former SCUSD School Board President

/s/ Donald Cormier
Resident

/s/ Ketra Oberlander
District Resident, Retiree

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Rebuttal to Argument Against Measure BB

REBUTTAL TO ARGUMENT AGAINST MEASURE BB

Measure BB's opponents are either misinformed about the District's management or being intentionally deceptive. These few opponents include a minor political party that advocates "free-market education" and a private high school teacher.

Don't be deceived, and don't let them tell you that our community's students aren't worth the investment.

Here are the FACTS:

FACT: Santa Clara Unified School District is paying down its current bonds at a faster rate and at lower expense than what was asked of voters. SCUSD's fiscal responsibility has resulted in taxpayer savings of $434 million, with the median single-family home saving almost $500 on last year's tax bill.

FACT: SCUSD did not ask voters to renew Measure A when it expired in June 2017, saving homeowners another $84 on their annual property taxes.

FACT: The quality of SCUSD schools is a major reason why property values in Santa Clara have nearly tripled since 2012, while home values in other Santa Clara County cities have only doubled.

FACT: Measure BB will build needed schools and improve the quality of school facilities, which improves the quality of education and the value of our homes.

Santa Clara Unified's facility needs are significant and urgent. We must act now.

Measure BB will:

  • • Provide the facilities and technology needed for high-quality instruction and prepare students for college and careers;
  • • Repair and upgrade essential school facilities (like leaky roofs, rusty plumbing, and faulty electrical systems);
  • • Secure school campuses; and
  • • Improve access for students with disabilities.

Measure BB is a wise investment in our children and our community. VOTE YES on MEASURE BB.

SupportSantaClaraSchools.org

/s/ Teresa O'Neill
Santa Clara City Councilmember

/s/ Tim Towers
Former Chair, SCUSD Bond Oversight Committee

/s/ Jim Canova
SCUSD School Board Member

/s/ Kathy Watanabe
Vice-Mayor, City of Santa Clara

/s/ Steve Lodge
Former Santa Clara Police Chief SC Ballot Type 193 - Page 041

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Full Text of Measure BB

Exhibit A, page 1
79278v3 / SANCLARUSD.35.1

EXHIBIT A

BALLOT MEASURE
FULL TEXT OF THE MEASURE

Upon the passage of Measure 18-42, the Santa Clara Unified School District (the "District") shall be authorized to issue bonds in the aggregate amount of $720,000,000 (the "Bonds"), bearing interest at rates not exceeding the statutory limit, for the purpose of funding the school facilities projects listed below (the "Projects") at the District's school sites and properties, subject to the accountability safeguards set forth below.

Bond Accountability Measures

The Board certifies that it evaluated safety, class size reduction, and information technology needs in developing the list of the Bond Projects set forth below.

The Board will conduct financial and performance audits annually to account for the Bond funds and for their expenditure on the specific authorized projects.

The Board will appoint members to a citizens' oversight committee having a minimum of seven members and including at least one member active in a business organization representing the business community located within the District, one member active in a senior citizens' organization, one member active in a bona fide taxpayers' organization, one member who is the parent or guardian of a child enrolled in the District, and one member who is both a parent or guardian of a child enrolled in the District and active in a parent-teacher organization.

The Bond Project List set forth below 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, along with related costs, of school facilities as set forth herein, 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.

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.

In order to meet all identified facilities needs, the District intends to complete Projects using a combination of funding sources. These sources may include joint-use funds, development impact fees, state funds, 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 this Bond Project List or other high priority capital outlay expenditures as permitted in Education Code section 17070.63(c).

Exhibit A, page 2
79278v3 / SANCLARUSD.35.1

Specific Projects which may be funded by the bond measure include, without limitation, the following:

Agnews Campus: Complete 1,600 student comprehensive high school.

Reconstruct fields at Santa Clara High School.

Reconstruct fields at Wilcox High School.

Expand New Valley High School to Monticello Campus.

Reconstruct fields at Peterson Middle School.

New Patrick Henry School campus, including special education facilities.

Reconfigure the Laurelwood Campus for changes resulting from enrollment or grade level configuration or other District use in support of schools.

New school shade structures.

Add and replace elementary school play structures.

Replace roofs.

Upgrade fencing and gates.

School playground paving.

Replace portable buildings with permanent structures.

Replace Children's Center buildings at Bracher Elementary School and Briarwood Elementary School.

Reconfigure Westwood Elementary School for preschool special education program.

Replace single glazed windows.

Restrooms additions and upgrades.

Drop-off and pick-up traffic improvements.

Improve school fields.

Replace elementary school offices to improve student and parent support services.

Replace elementary school multipurpose buildings and kitchens.

Exhibit A, page 3
79278v3 / SANCLARUSD.35.1

Bond Program Management Costs

Project expenditures may also include:

Program Costs: Staffing and other general and administrative costs to manage and execute the Bond Program.

Escalation Reserve: Reserve for unforeseen price inflation costs.

Program Reserve: Reserve for unanticipated scope costs or for unanticipated opportunities to enhance project scope or schedules.

For any of the Bond Projects described above with respect to construction at an existing District site, the District is authorized to identify an alternate site and/or acquire land for such purpose and construct the approved Project at such site if the District has determined that the existing site does not satisfy the requirements of the Division of State Architect or other State laws, codes, and regulations, including, but not limited to hazardous substances, applicable to school district properties.

The final cost of each Project will be determined as plans are finalized 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. The allocation of Bond proceeds may also be affected by the final costs of each Project.

Necessary site preparation/grading/restoration may occur in connection with new construction, reconstruction, modernization, renovation, rehabilitation or replacement, furnishing and equipping, including ingress and egress, removing, replacing or installing irrigation, utility lines, trees and landscaping, relocating fire access roads, and acquiring any necessary easements, leases, licenses, or rights of way to the property.

Additional Specifications

Listed projects, repairs, improvements, rehabilitation projects, and upgrades will be completed only as feasible, and the list of Projects does not imply a particular prioritization among such improvements. Such prioritization remains within the province of the Board of Trustees by subsequent action. The Projects may be completed at any and all school sites where such Project is determined necessary. Where economically feasible, buildings, fixtures, and equipment may be replaced rather than modernized, renovated, or repaired. Each Project is assumed to include its share of costs of the election and bond issuance, architectural, engineering, and similar planning costs, construction management, bond project staff, staff training expenses associated with new bond-funded equipment and systems, and a customary contingency for unforeseen design and construction costs. In addition to the Projects listed above, the Bond Project List also includes the acquisition of land, instructional, maintenance and operational furniture and equipment, payment of the costs of preparation of all facilities planning and project implementation studies, feasibility and assessment reviews, master planning, environmental studies, temporary housing for dislocated programs or activities caused or necessitated by construction projects, and construction, repairs, and improvements in the event of unforeseen emergencies or other circumstances in order to permit the continuance of existing educational services or to avoid danger to life or property.

Exhibit A, page 4
79278v3 / SANCLARUSD.35.1

Single Purpose. All of the purposes enumerated in this proposition shall be united and voted upon as one single proposition, pursuant to Section 15100 of the Education Code, and all the enumerated purposes shall constitute the specific single purpose of the Bonds and proceeds of the Bonds shall be spent only for such purpose.

Other Terms of the Bonds. When sold, the Bonds shall bear interest at an annual rate not exceeding the statutory maximum. The Bonds may be issued and sold in several series, and in accordance with a plan of finance determined by the Board pursuant to requirements of law.

Project Requiring State Matching Funds. Approval of Measure __ does not guarantee that the proposed District Projects that are the subject of Bonds under Measure __ will be funded beyond the local revenues generated by Measure __. Some of the District's Projects may assume the receipt of state matching funds, which could be subject to appropriation by the Legislature or approval of a statewide bond measure.

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Measure BB Tax Rate Statement

TAX RATE STATEMENT

SANTA CLARA UNIFIED SCHOOL DISTRICT

An election will be held in the Santa Clara Unified School District (the "District") on November 6, 2018, to authorize the sale of up to $720,000,000 in bonds (the "Bonds") of the District to continue improving the quality of education in local elementary, middle, and high schools of the District. Specifically, Bond proceeds shall be utilized for the purposes of acquisition, construction, renovation, furnishing, and equipping of school facilities, support facilities, and equipment.

If the Bonds are authorized and sold, debt service thereon 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 9400-9404 of the Elections Code of the State of California. It is anticipated that the District will sell the Bonds in two separate series.

  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 4.88’ per $100 ($48.76 per $100,000) of assessed valuation. The final fiscal year in which the tax is anticipated to be collected is 2050-2051.
  2. 2. The best estimate of the highest tax rate that would be required to be levied to fund this Bond issue, based on assessed valuations available at the time of filing of this statement, is 4.88’ per $100 ($48.80 per $100,000) of assessed valuation which would first occur in fiscal year 2019–2020.
  3. 3. The best estimate of total debt service, including principal and interest, that would be required to be repaid if all the Bonds are issued and sold is $1,448,643,639. This estimate results in a debt service to principal ratio of 2.01:1, which is significantly less than the maximum ratio of 4.00:1 allowed by State law. This estimate is based on assumptions that interest rates will increase over time, and the Bonds will have a maximum term of 30 years per series.

Voters should note that the estimated tax rates are based on the ASSESSED VALUE of taxable property on the County's 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, the years in which they will apply, and the final term of each series of Bonds 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. SC Ballot Type 193 - Page 038

PR-8405-4-ENG
TAX RATE STATEMENT-Continued

The dates of sale and the amount of Bonds sold at any given time will be determined by the District based on the need for construction funds and other factors, including the legal limitations on bonds approved by a 55% vote. 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 7, 2018

/s/ Stanley Rose III
Ed.D., Superintendent, Santa Clara Unified School District

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Measure BB Agenda Description

Agenda of February 08, 2018 (complete item)

Regular Meeting of the Board of Education
Santa Clara USD
February 08, 2018 6:30PM

D.7. Presentation from Timothy McLarney of True North Research INC and Tom Clifford of Clifford Moss Concerning a Recent Voter Survey for a Potential General Obligation Bond Election and Related Information
Speaker:
Timothy McLarney and Tom Clifford
Rationale:

DATE: February 8, 2018

TYPE OF AGENDA ITEM: PRESENTATION/REPORT

TO: Board of Trustees

FROM: Stanley Rose III, Ed.D., Superintendent

PREPARED BY: Mark Allgire, Chief Business Official

SUBJECT: Presentation from Timothy McLarney of True North Research INC and Tom Clifford of Clifford Moss Concerning a Recent Voter Survey for a Potential General Obligation Bond Election and Related Information

ADMINISTRATIVE SUMMARY:

Timothy McLarney of True North Research Inc. and Tom Clifford of Clifford Moss are scheduled to present information to the Board concerning the results of the recent voter survey, concerning a potential General Obligation Bond election and related information.

Questions from the Board can be directed to Timothy, Tom or to staff.




E. DISCUSSION
E.1. Review of a Potential General Obligation Bond Election and Draft Board Resolution No. xxxx with Exhibits
Speaker:
Addison Covert
Rationale:

DATE: February 8, 2018

TYPE OF AGENDA ITEM: DISCUSSION

TO: Stanley Rose III, Ed.D., Superintendent

FROM: Mark Allgire, Chief Business Official

SUBJECT: Review of a Potential General Obligation Bond Election and Draft Board Resolution No. xxxx with Exhibits


ADMINISTRATIVE SUMMARY:

PURPOSE:

The purpose of this agenda item is for the Board to review the draft documents necessary for the Board to call for a General Obligation Bond election on June 5, 2018.

BACKGROUND:

Resolution No. xxxx is presented for Board review. This Resolution along with Exhibits is required for the Board to call for a General Obligation Bond election on June 8, 2018.

Staff along with representatives from Parker & Covert, Bond Counsel will present information and be available to answer questions.



F. REPORTS CONTINUED
F.1. Report of Bond Engagement Update
Rationale:

DATE: February 8, 2018

TYPE OF AGENDA ITEM: REPORT

TO: Stanley Rose III, Ed.D., Superintendent

FROM: Andrew Lucia, School Support and District Development

PREPARED BY: Jennifer Dericco, Public Relations

SUBJECT: Report of Bond Engagement Update


ADMINISTRATIVE SUMMARY:

A report will be made regarding the bond communication plan and its related activities which were approved by the Board of Trustees on October 12, 2017.



Attachments:
Community Engagement Update
F.2. Present the Annual Report from the Measure J-2004, Measure H-2010 and Measure H-2014 Independent Citizen's Oversight Committees for Fiscal Year 2016-2017.
Rationale:

DATE: February 8, 2018

TYPE OF AGENDA ITEM: REPORT

TO: Stanley Rose III, Ed.D., Superintendent

FROM: Mark Allgire, CPA, Chief Business Official

PREPARED BY: Larry Adams, Director, School Bond Projects

SUBJECT: Present the Annual Report from the Measure J-2004, Measure H-2010 and Measure H-2014 Independent Citizen's Oversight Committees for Fiscal Year 2016-2017

ADMINISTRATIVE SUMMARY:

On November 4, 2004, the voters of the District approved Measure J, a $315,000,000 general obligation bond; on November 2, 2010, the voters of the District approved Measure H-2010, an $81,100,000 general obligation bond; and on November 4, 2014, the voters of the District approved Measure H-2014, a $419,000,000 general obligation bond, all to improve the District's schools. Each election was conducted under Proposition 39, the "Smaller Classes, Safer Schools and Financial Accountability Act". As required by the act, the Board has established three separate Citizens' Bond Oversight Committees, which meet concurrently.

Section 3 of the adopted Bylaws for the Committees lists the Committee's duties as follows:

3.1 Inform the Public. The Committee shall inform the public regarding the District's expenditure of Bond proceeds.

3.2 Review Expenditures. The Committee may review quarterly expenditure reports produced by the District to ensure that (a) bond proceeds are expended only for the purposes set forth in the ballot measure; (b) no bond proceeds are used for any teacher or administrative salaries or other operating expenses.

3.3 Annual Report. The Committee shall present to the Board, in public session, an annual written report which shall include the following: (a) A statement indicating whether the District is in compliance with requirements of Article XIIIA, Section 1 (b) (3) of the California Constitution, and (b) a summary of the Committees proceedings and activities for the preceding year.

In response to these duties the Committees met on two occasions in fiscal year 2016-2017 and reviewed expenditure reports and other documents produced by District staff. At its meeting on January 29, 2018, the Committees reviewed and accepted financial and performance audit reports prepared by the District's auditor, Crowe Horwath LLP CPA's.

A Committee member, representing each Committee will be present at the meeting to present a report, and will report the District is in compliance with requirements of Article XIIIA, Section 1 (b) (3) of the California Constitution.



Financial Impact:



F.3. Report on the Bond Project Office and Staffing Plan
Speaker:
Mark Allgire and Larry Adams
Rationale:

DATE: February 8, 2018

TYPE OF AGENDA ITEM: REPORT

TO: Stanley Rose III, Ed.D., Superintendent

FROM: Mark Allgire, Chief Business Official and Larry Adams, Director School Bond Projects

SUBJECT: Report on the Bond Project Office and Staffing Plan

ADMINISTRATIVE SUMMARY:

The District will have additional school sites within the next five school years, including the three new schools at Agnews. The Bond Project Office has historically managed District Bond Projects with a combination of employees, contracted extensions of staff and construction management services. Currently, the Director School Bond Projects supervises all employees, and all other services. There are currently three additional management level positions which work on specific projects, including Agnews (see attached organization chart).

With the distinct possibility of a June 2018 General Obligation Bond election, staff has been reviewing the best long-term structure for the Bond Projects Office. The consensus is additional employees, and a corresponding reduction in dependence on outside services may be a more optimal long-term structure.

This Report will not include a discussion of construction management services, since no immediate changes to the project delivery model are contemplated. For purposes of this Report, construction management services are defined as those services performing pre-construction services and "on-the-job" at construction sites.

To adequately supervise current and future bond projects, provide training, enhance customer service and promote consistency, the department needs additional staffing, support and management level positions (with a corresponding reduction in outside services).

Staffing will be increased over a multi-year period, commencing in fiscal year 2017/18. The anticipated costs for 2017/18, and future years are designed to be flexible and based on project needs. It is proposed that additional staffing could be added at the recommendation of the Chief Business Official and the Director School Bond Projects with the concurrence of the Superintendent.

There is no anticipated cost impact to the General Fund, as all costs will be borne by the Building Fund(s), as they are currently.

The Chief Business Official and the Director School Bond Projects will present a Report that begins the process to prepare the Bond Projects Office for the next decade of projects.




Financial Impact:

Additional FTE's will be added starting in 2017/18. Costs will be expended in the Building Fund(s), not the General Fund.


Attachments:
Bond Projects Department

Agenda of August 7, 2018 (complete item)

Special Meeting of the Board of Education
Santa Clara USD
August 07, 2018 6:30PM

C. WORK STUDY SESSION
C.1. Discussion on Santa Clara Unified School District Placing a General Obligation Bond on the November 2018 General Election Ballot
Rationale:

DATE: August 7, 2018

TYPE OF AGENDA ITEM: DISCUSSION

TO: Stanley Rose III, Ed.D., Superintendent

FROM: Eric Dill, Chief Business Official

SUBJECT: Review of Projects and Financing Plan Supporting a Potential General Obligation Bond Election

ADMINISTRATIVE SUMMARY:

PURPOSE:

The purpose of this agenda item is for the Board to review potential construction projects, financing plan, and other considerations in anticipation of Board action on a resolution to call a general obligation bond election to be held on November 6, 2018.

BACKGROUND:

Resolution No. #18-42 is presented for Board review. This Resolution along with its Exhibits is required for the Board to call a general obligation bond election to be held in conjunction with the upcoming November 6, 2018 election and will be formally considered later at this special meeting.

At the Board's July 12, 2018 meeting, information on potential bond projects was presented by Larry Adams, the District's Director of School Bond Projects. At that same meeting, the Board engaged in a discussion on the nature and extent of the proposed projects along with the amount of bonds to be authorized at an election to fund such projects. Thereafter, staff updated the potential bond project list previously presented to the Board. At the August 7, 2018 meeting, Mr. Dill and Mr. Adams will present follow up information to the Board on the potential projects to be funded, along with a maximum bond amount for the election.

The Resolution includes a maximum bond amount of $720 million and also includes a list of authorized projects at Exhibit A. If approved by the voters at the election, the expenditure of bond funds would be limited to those projects set forth at Exhibit A. The Resolution further contains at Exhibit A-1 a ballot summary to be voted on at the election. This ballot summary meets the requirements of current law applicable to school bond measures. A summary of the tax to be implemented by the District to repay the bonds is included at Exhibit B to the Resolution.

The Bond Financial Plan for a November 2018 Bond Election has also been revised since the last special meeting. The current plan includes updated information on the assessed valuation which was not previously available. The new information has led to a revised financing plan which would allow for the bonds to be issued in two series and maintaining a maximum projected tax rate below $49.00.

Information from the revised project list and financing plan were incorporated in the drafting of the final resolution.

Lori Raineri of Government Financial Strategies inc, Tom Clifford of Clifford Moss, and Addison Covert of Parker & Covert will be available to answer questions.




Minutes:
Eric Dill, CBO, discussed that they took the information from the Board at the last meeting, pulled items off the list, moved the Peterson pool and locker rooms off the list and put it on the Measure H.. Eric also explained to the Board how they came to the dollar amount of $720,000,000 which includes a cushion for inflation.

Larry Adams, Director Bond Projects, went through the project list and answered questions of the Board.

The Board continued their discussion and concerns regarding the project list.

Attachments:
One Page Summary version 13.0 Draft
Pre Revised Bond Plan 2018
Resolution #18-42 Calling November 2018 GOB
D. ACTION
D.1. Approval of a Potential General Obligation Bond Election by Way of Board Resolution No. 18-42 with Exhibits
Rationale:

DATE: August 7, 2018

ITEM TYPE: ACTION

TO: Stanley Rose III, Ed.D., Superintendent

FROM: Eric Dill, Chief Business Official

SUBJECT: Approval of a Potential General Obligation Bond Election by Way of Board Resolution No. 18-42 with Exhibits.

ADMINISTRATIVE SUMMARY:

PURPOSE:

The purpose of this agenda item is for the Board to consider approval of a resolution necessary to call a general obligation bond election to be held on November 6, 2018.

BACKGROUND:

Resolution No. 18-42 is presented for Board review and approval. This Resolution along with its Exhibits is required for the Board to call a general obligation bond election to be held in conjunction with the upcoming November 6, 2018 election.

The Resolution includes a maximum bond amount of $720 million raising approximately 5 cents/$100 of assessed value ($45 million annually) for 32 years and also includes a list of authorized projects at Exhibit A. If approved by the voters at the election, the expenditure of bond funds would be limited to those projects set forth at Exhibit A. The Resolution further contains at Exhibit A-1 a ballot summary to be voted on at the election. This ballot summary meets the requirements of current law applicable to school bond measures. A summary of the tax to be implemented by the District to repay the bonds is included at Exhibit B to the Resolution.

If approved by the Board, the Resolution will be transmitted to the Registrar of Voters for Santa Clara County who will thereafter conduct the election in coordination with the District.

Lori Raineri of Government Financial Strategies inc, Tom Clifford of Clifford Moss, and Addison Covert of Parker & Covert will be available to answer questions.



Minutes:
President Hunt led the Board in a discussion regarding the cost of the bond. The Board reviewed and discussed various prices for the Bond.
Recommended Motion:

Staff recommends approval of Board Resolution No. 18-42calling for an election on November 6, 2018 to submit to the electors of the District the question of whether general obligation bonds of the District shall be issued and sold in the principal amount of $720,000,000 for the purposes described in the ballot measure.






Actions:
Motion
Motion to approval of a Potential General Obligation Bond Election by Way of Board Resolution # 18-42 with Exhibits of $720,000,0000. Board roll call vote: 7 YES (Canova, Gonzalez, Hunt, Muirhead, Ratermann, Richardson, Ryan), 0 NOES, 0 ABSTAIN, 0 ABSENT, 0 RECUSE. Passed with a motion by Albert Gonzalez and a second by Andrew Ratermann.
Vote:
Yes Jim Canova.
Yes Albert Gonzalez.
Yes Noelani Hunt.
Yes Jodi Muirhead.
Yes Andrew Ratermann.
Yes Mark Richardson.
Yes Dr. Michele Ryan.
Attachments:
Resolution #18-42 Calling November 2018 GOB

  Welcome    Question    Analysis    Argument in Favor    Rebuttal in Favor    Argument Against    Rebuttal Against    Full Text    Tax Rate    Agenda    Resolution  

Measure BB Resolution

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RESOLUTION NO. 18-42

RESOLUTION OF THE BOARD OF TRUSTEES OF THE
SANTA CLARA UNIFIED SCHOOL DISTRICT
ORDERING A SCHOOL BOND ELECTION,
ESTABLISHING SPECIFICATIONS OF THE ELECTION ORDER, AND
REQUESTING CONSOLIDATION WITH OTHER ELECTIONS
OCCURRING ON NOVEMBER 6, 2018

WHEREAS, the Santa Clara Unified School District (the "District") is a unified school district serving kindergarten through 12th grade duly organized under the laws of the State of California;

WHEREAS, the Board of Trustees of the District (the "Board") is authorized, upon a twothirds vote of the Board, to pursue the authorization and issuance of bonds by a 55% vote of the electorate on the question of whether bonds of the District (the "Bonds") shall be issued and sold for specified purposes, under Article XIIIA Section 1 paragraph (b) of the California Constitution ("Article XIIIA") and under the Strict Accountability in Local School Construction Bonds Act of 2000 at Education Code Section 15264 et seq. (the "Strict Accountability Act");

WHEREAS, under the Strict Accountability Act, the election may be ordered at a primary or general election, a regularly scheduled local election, or a statewide special election;

WHEREAS, under Section 10403 et seq. of 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 (the "County Registrar") to perform certain election services for the District; and

WHEREAS, the Board deems it necessary and advisable to call an election to submit to the electors of the District the question whether District bonds shall be issued and sold for the purpose of raising money for the acquisition and improvement of real property and the furnishing and equipping of school facilities of the District.

NOW, THEREFORE, be it resolved by the Board of Trustees of the Santa Clara Unified School District, Santa Clara County, California, as follows:

Section 1. Election Order. The Board hereby orders an election and submits to the electors of the District the question of whether general obligation bonds of the District shall be issued and sold in the principal amount of $720,000,000 for the purposes described in the ballot measure approved under Section 3 and attached hereto as Exhibit A and Exhibit A-1, and paying costs incident thereto. This Resolution constitutes the order of the District to call such election and shall constitute the "specifications of the election order" pursuant to Education Code Section 5322.

Section 2. Authority for the Election; Election Date. Pursuant to Education Code Sections 5304 and 5322, the Strict Accountability Act, and Article XVI, Section 18(b) of the California Constitution, an election shall be held within the boundaries of the District on November 6, 2018.

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Section 3. Purpose of Election; Ballot Measure. The purpose of the election shall be for the voters in the District to vote on a measure, a full copy of which is attached hereto as Exhibit A and marked "Exhibit A, Ballot Measure, Full Text of the Measure" (the "Full Text of the Measure"), containing the question of whether the District shall issue the Bonds for the purposes stated therein, together with the accountability requirements of Article XIIIA and the requirements of Section 15272 of the Strict Accountability Act. The Full Text of the Measure, which commences with the heading "Ballot Measure, Full Text of the Measure" and includes all of the text thereafter on Exhibit A, shall be printed in the voter information pamphlet provided to voters, with such measure designation as is assigned to the measure. As required by Elections Code Section 13247 and Education Code Section 5322, the abbreviated form of the measure to appear on the ballot is attached hereto as Exhibit A-1 and is marked as "Exhibit A-1, Ballot Measure, Abbreviated Form" (the "Abbreviated Ballot Measure").

Section 4. Use of Bond Proceeds.

  1. a. Proceeds from the sale of the bonds may be used only for the purposes specified in Article XIII A, section 1(b)(3) of the California Constitution.
  2. b. The projects that may be funded from proceeds from the sale of bonds (the "Projects"), are listed in the Full Text of the Measure.

Section 5. Accountability Requirements.

  1. a. Pursuant to Article XIIIA, section 1(b)(3), the Board shall conduct an annual, independent performance audit to ensure that the bond funds have been expended only on the specific Projects listed in the Full Text of the Measure.
  2. b. Pursuant to Article XIIIA, section 1(b)(3), the Board shall conduct an annual, independent financial audit of the proceeds from the sale of the Bonds until all of the proceeds have been expended for the Projects listed in the Full Text of the Measure.
  3. c. Pursuant to Government Code section 53411, the Chief Business Official of the District shall issue an annual report to the Board containing the amount of funds collected and expended as well as the status of the Projects authorized in the Full Text of the Measure. The District's adopted budget or Audit Report will suffice for this purpose.
  4. d. Pursuant to the Strict Accountability Act, if a citizens' oversight committee has not already been established for the Bonds, within 60 days of the date the Board enters the election results on its minutes, the Board will appoint a citizens' oversight committee to review and report on the proper expenditure of taxpayers' money for school construction.

Section 6. Vote Required. Pursuant to Section 18(b) of Article XVI and Section 1 of Article XIII A of the California Constitution, the bond measure shall become effective only upon affirmative vote of fifty-five percent (55%) of those voters voting on the measure.

Section 7. Delivery of this Resolution; County Registrar of Voters to Call and Conduct Election. The Superintendent, or his designee, is hereby directed to send a copy of this Resolution, along with the Tax Rate Statement described in Sections 9 and 11 below and attached 3
79278v3 / SANCLARUSD.35.1
hereto as Exhibit B to (1) the County Registrar, (2) the Superintendent of Schools of Santa Clara County, and (3) the Clerk of the Board of Supervisors of Santa Clara County by August 10, 2018, or such other date as is acceptable to each party.

Pursuant to Section 5303 of the Education Code, the County Registrar is hereby requested to take all steps to prepare for and hold the election within the boundaries of the District in accordance with law and these specifications.

Section 8. Consolidation with Other Elections. Pursuant to Sections 5342, 15121, and 15266 of the Education Code and Part 3 (commencing with Section 10400) of Division 10 of the Elections Code, the County Registrar and the Board of Supervisors of Santa Clara County (the "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 Section 10403 of the Elections Code, the Board hereby acknowledges that the consolidated election will be held and conducted in the manner prescribed by Section 10418 of the Elections Code.

Section 9. Services of County Registrar of Voters. Pursuant to Section 5303 of the Education Code and Section 10002 of the Elections Code, the Board of Supervisors is requested to permit the County Registrar to render all services incident to the preparation for and holding of the election, for which services the District agrees to reimburse Santa Clara County (the "County") in full from District funds upon presentation of a bill from the County, such services to include the publication of a formal notice of school bond election and the mailing of the Full Text of the Measure, the Abbreviated Measure, and the tax rate statement (described in Elections Code Section 9401) (the "Tax Rate Statement"). The Board hereby requests the County Registrar to publish in the ballot materials, the Full Text of the Measure, the Abbreviated Ballot Measure, and the Tax Rate Statement attached hereto as Exhibits A, A-1 and B.

Section 10. Canvass of Returns. The Board of Supervisors is authorized to canvass the returns of the election pursuant to Section 10411 of the Elections Code.

Section 11. Ballot Arguments; Tax Rate Statement. Any and all members of this Board are hereby authorized to act as an author of any ballot argument prepared in connection with the election, including a rebuttal argument. The Board hereby approves the form of the Tax Rate Statement. The President of the Board, the Superintendent, the Chief Business Official, or any designee of the foregoing, are hereby authorized to execute and deliver the attached Tax Rate Statement or other document and to perform all acts necessary to place the bond measure on the ballot.

Section 12. State Matching Funds. Some of the Projects may require state matching funds for completion. Approval of the District's bond measure does not guarantee that the proposed Projects will be funded beyond the local revenues generated by this bond measure. The District's completion of some of the Projects may depend on receipt of State funds.

Section 13. Encumbrance of Bond Funds. For the purpose of making bond funds unavailable as rent within the meaning of Education Code section 17032, the Board hereby encumbers all funds to be generated by the sale of the Bonds in order to pay for the acquisition and construction of the Projects authorized by the ballot measure.

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Section 14. Official Intent to Reimburse Expenditures. The District intends to undertake the acquisition, construction, renovation, furnishing, and equipping of the Projects as described in the Full Text of the Measure. The District intends to use the proceeds of its Bonds described in this Resolution to finance the Projects. The District may pay certain capital expenditures (the "Reimbursement Expenditures") in connection with the Projects prior to the issuance of the Bonds. The Bonds, in the amount of $720,000,000 will be issued for the purpose of financing the Projects on a long-term basis and certain of the proceeds of such debt obligations may be used to reimburse the District for the certain expenditures.

The Board hereby declares the District's official intent to use a portion of the proceeds of the Bonds to reimburse the District for the Reimbursement Expenditures. The foregoing statement is a declaration of official intent that is made under and only for the purpose of establishing compliance with the requirements of Treasury Regulations section 1.150-2.

Section 15. General Authorization with Respect to the Bond Measure and with Respect to this Resolution. The Superintendent is hereby authorized and directed, to undertake any and all actions and to modify, execute, and deliver any and all documents, and to perform or take any and all actions, deemed necessary to meet all requirements of applicable law, including any legislative changes, and to effectuate the purposes of this Resolution and its accompanying documents. Such actions on the part of the Superintendent may include, but are not limited to, making any changes to this Resolution, the Full Text of the Measure, the Abbreviated Ballot Measure, or the Tax Rate Statement (hereinafter the "Ballot Documents"). In the event of any such modifications to the Ballot Documents, the Superintendent is hereby further authorized to supplement or replace the original versions of such documents with the versions modified pursuant hereto. Such modified versions shall thereafter be deemed to constitute the final, complete and approved version of the Ballot Document, for all intents and purposes, including for delivery of the Ballot Documents to the County Registrar and other parties set forth in Section 7 above and for publication of the ballot materials set forth in Section 9 above. All actions heretofore taken by the Superintendent or any other authorized officers or agents of the District that are in conformity with the purposes and intent of this Resolution are hereby approved in all respects.

Section 16. Effective Date. This Resolution shall take effect immediately upon its adoption.

[Signature page follows]

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PASSED AND ADOPTED by the following vote of the members of the Board of Trustees of the Santa Clara Unified School District, of Santa Clara County, State of California, this 7th day of August 2018:

AYES ________________________

NOES ________________________

ABSENT ________________________

ABSTAIN ________________________

SANTA CLARA UNIFIED SCHOOL DISTRICT

Noelani Pearl Hunt
President of the Board of Trustees

ATTEST:

Stanley Rose III, Ed.D.
Secretary of the Board of Trustees

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CERTIFICATION

I, Stanley Rose III, Secretary of the Board of Trustees of the Santa Clara Unified School District, Santa Clara County, California, do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly approved and adopted by the Board of Trustees of the District at a meeting held on August 7, 2018, of which meeting all the members of the Board of Trustees had due notice and at which a majority thereof were present, and that at the meeting the resolution was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

An agenda for the meeting was provided in advance of the meeting, as required by law, to all members of the Board of Trustees and to all media outlets that have requested notification. Further the agenda was posted in advance of the meeting, as required by law, at the District at 1889 Lawrence Road, Santa Clara, California 95051, a location freely accessible to members of the public, and a brief description of the resolution appeared on the agenda.

I have carefully compared the foregoing resolution with the original minutes of the meeting on file and of record in my office, and the foregoing is a full, true, and correct copy of the original resolution adopted at the meeting and entered in the minutes.

Dated: ______________, 2018
Stanley Rose III, Ed.D.,
Secretary of the Board of Trustees
Santa Clara Unified School District

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