Commentary on Measure Z

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 Z Question

To provide safe and modern schools; upgrade aging classrooms, libraries, science labs and school facilities; improve accessibility for students with disabilities; enhance student safety and security by upgrading seismic safety, fire alarms, door locks and emergency communication; provide classrooms and labs supporting science, technology, engineering and arts programs, shall Palo Alto Unified School District issue $460,000,000 in bonds at legal rates, with an independent oversight committee, annual audits, no money for administrator salaries and all funds benefitting local schools?

Final Ballot Statement

To provide safe/modern schools; upgrade aging classrooms, libraries, science labs, school facilities; improve accessibility for students with disabilities; enhance student safety/security by upgrading seismic safety, fire alarms, door locks, emergency communication; provide classrooms/labs supporting science, technology, engineering, arts programs, shall Palo Alto Unified School District issue $460,000,000 in bonds at legal rates, levy approximately $39.40 per $100,000 of assessed value, generating approximately $29,500,000 annually for 28 years, with independent oversight and all funds benefitting local schools?

Bonds Yes
Bonds No

Impartial Analysis for Measure Z

PR-8403-1-ENG

MEASURE Z

COUNTY COUNSEL'S IMPARTIAL ANALYSIS OF MEASURE Z

Measure Z would authorize issuance of $460,000,000 in bonds to fund school facilities projects in the Palo Alto 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 Measure states that the money could be used, among other things, to:

• • Improve school safety and accessibility;
• • Repair, renovate, and enhance school facilities and grounds; and
• • Improve classrooms, science labs, other learning spaces, and student support facilities.

A complete list of 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.

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 $39.40 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 $805,000,000. The District estimates that the final year that taxes will be collected to repay the bonds is fiscal year 2045-2046.

A "yes" vote is a vote to authorize the issuance of the bonds in the amount of $460,000,000 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 Z

ARGUMENT IN FAVOR OF MEASURE Z

Vote Yes on Z to upgrade classrooms, science and engineering labs, and other school facilities in Palo Alto Unified School District with locally controlled funding that cannot be taken away by the State.

We live in one of the best school districts in California and the nation. Ten years ago, voters overwhelmingly approved the Strong Schools Bond Measure to fund improvements to aging schools. These projects were completed on time and on budget. However, this measure was only intended to address the first half of facility needs identified at that time.

Measure Z is the next step in the plan to upgrade our schools. Voting Yes on Z provides dedicated local funding to complete the next phase of repairs and improvements so our schools remain safe, accessible and able to support 21st-century learning standards.

Vote YES on Z to:

• • Ensure school facilities are accessible for students with disabilities and equitable for all
• • Upgrade schools to current seismic safety standards to help keep students safe in an earthquake
• • Complete needed repairs and renovations at school facilities by replacing aging roofs, plumbing, electrical, heating and ventilation systems
• • Increase school safety and security by upgrading fire alarms, door locks and emergency communication systems to meet current standards
• • Provide classrooms and labs to support up-to-date science, technology, engineering and robotics instruction
• • Provide up-to-date facilities to maintain outstanding performing and visual arts programs

Measure Z Requires Strict Fiscal Accountability

• • By law, all funds must stay local and no money can be taken away by the State
• • No funds can be used for administrators' salaries, pensions or benefits
• • An independent citizens' oversight committee and annual audits are mandatory to ensure funds are spent as promised

Please join parents, teachers and community leaders in supporting the continued success of local Palo Alto students by voting Yes on Z.

Rebuttal to Argument in Favor of Measure Z

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REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE Z

Just 10 years ago, voters in the district passed a $378M bond measure to do the following:

"to accommodate enrollment growth".

But, enrollment declined down to 12,287 (2016-17 school years).

Guess their crystal ball was in the shop for repairs.

Now they want to "provide classrooms/labs supporting science, technology, and engineering". None of which they apparently provide today?

Today's technology will be obsolete in 5-6 years, or sooner.

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

Answer: insane, if you vote for Measure Z.

The technology that the district previously bought over the years, with 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 Z to stop this fiscal insanity.

The district wants to spend $460M to help 12,287 students at a cost of $37,437 per student plus the ADA funds of $19,334 per student that they get every year.

Seriously, that's a lot of money. But, that $460,000,000 has to be paid back, and that will likely double your cost with interest and principle payments.

ADA spending per student is 158% of the California average, so they clearly already have more than enough funds to provide everything this bond measures promises to provide, but without this whopping big tax increase.

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

For more information: www.SVTaxpayers.org/2018-measure-z

Argument Against Measure Z

ARGUMENT AGAINST MEASURE Z

In 2008, just 10 years ago, voters in the district passed a $378M bond measure to do the following:

"to accommodate enrollment growth".

But, enrollment declined down to 12,287 (2016-17 school years).

Guess their crystal ball was in the shop for repairs.

Now they want to "provide classrooms/labs supporting science, technology, and engineering". None of which they appearing provide today?

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? No one right?

Answer: except you, if you vote for Measure Z.

The technology that the district previously bought over the years, with 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 Z to stop this fiscal insanity.

The district wants to spend $460M to help 12,287 students at a cost of $37,437 per student plus the ADA funds of $19,334 per student that they get every year.

Seriously, that's a lot of money. But, that $460,000,000 has to be paid back, and that will likely double the cost with interest and principle payments.

ADA spending per student is 158% of the California average, so they clearly already have more than enough funds to provide everything this bond measures promises to provide, but without this whopping big tax increase.

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

For more information, please visit our website at

www.SVTaxpayers.org/2018-measure-z

Rebuttal to Argument Against Measure Z

PR-8403-7-ENG

REBUTTAL TO ARGUMENT AGAINST MEASURE Z

These same two individuals submitted nearly identical arguments against every school funding measure on the ballot in Santa Clara County without regard to needs or specifics. They do not live in our school district; they live in San Jose. They have not visited our schools to understand our needs. And they have their facts WRONG.

They claim student enrollment declined since the passage of the Strong Schools Bond Measure in 2008. IN FACT, student enrollment INCREASED by nearly 10% during that period.

They claim the district purchases technology with long-term debt. IN FACT, each series of bonds PAUSD now issues includes short-term bonds that are paid off within three years to fund technology.

The truth is, the 2008 measure built classrooms, science labs, and other facilities that will serve local students for generations. The independent Citizens' Oversight Committee consistently reported that funds were spent as promised. PAUSD paid off bonds early, saving taxpayers millions, and maintains the highest credit rating available for school districts.

Measure Z funds the next phase of school improvements, continuing the plan presented ten years ago. It will repair, upgrade and build classrooms, labs, music and art rooms at schools that did not receive these improvements from the last measure.

We all benefit from living in a community with schools that are among the best in the State and the nation. Measure Z ensures our teachers and students have safe and modern school facilities for a world class education.

Join Palo Alto's most trusted leaders and vote Yes on Z.

Full Text of Measure Z

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EXHIBIT A

FULL TEXT OF BOND PROPOSITION

PALO ALTO UNIFIED SCHOOL DISTRICT
STUDENT SAFETY, ACCESSIBILITY AND CLASSROOM
MODERNIZATION MEASURE

This Proposition may be known and referred to as the "Palo Alto Unified School District Student Safety, Accessibility and Classroom Modernization Measure" or as "Measure __". [designation to be assigned by County Registrar of Voters]

ABBREVIATION OF PROPOSITION

"To provide safe and modern schools; upgrade aging classrooms, libraries, science labs and school facilities; improve accessibility for students with disabilities; enhance student safety and security by upgrading seismic safety, fire alarms, door locks and emergency communication; provide classrooms and labs supporting science, technology, engineering and arts programs, shall Palo Alto Unified School District issue $460,000,000 in bonds at legal rates, with an independent oversight committee, annual audits, no money for administrator salaries and all funds benefitting local schools?"

KEY FINDINGS

Palo Alto Unified School District (the "District") is known for its rich tradition of educational excellence and is committed to continuing to provide quality education to ensure student achievement remains among the top in the state and nation. Outstanding local schools help maintain our quality of life and keep our community a highly desirable place to live.

The community overwhelmingly supported the Strong Schools Bond in 2008, to fund significant improvements to our schools. These projects were completed on time and on budget. This measure was only intended to address approximately half of the facility needs identified at that time and the District is planning the next phase of improvements to school facilities. As Strong Schools Bond upgrades are being completed, the District is planning improvements to support District goals of high quality teaching and learning, equity and access, and student wellness and safety. These improvements will continue the upgrades begun in the Strong Schools Bond program, enhancing school security and upgrading classrooms and labs to meet 21st century instructional standards.

Upgrades to local schools are needed to ensure facilities are accessible for students with disabilities and equitable for all. Repairs are needed at school facilities, including, but not limited to, increasing school safety and security by A-2
4163-6506-0625.7 replacing outdated fire alarms, door locks and emergency communications systems as well as completing seismic safety upgrades to meet current standards to keep students safe in the event of an earthquake.

Upgrades are also needed to many classrooms and labs to support up-todate science, technology, engineering and robotics instruction as well as to maintain Palo Alto's outstanding performing and visual arts programs.

After carefully identifying the facility needs remaining at each school site and working with parents, teachers, staff and members to prioritize those needs, the District believes a school facilities improvement bond measure is needed to provide locally controlled funding to complete the next phase of school upgrades.

Funds from a local school facilities improvement bond measure cannot be taken away by the State of California and must stay in our local community to upgrade local schools.

A school facilities improvement bond measure will require strict fiscal accountability requirements, including an independent citizens' oversight committee, mandatory annual audits and a prohibition against any funds being used to administrators' salaries, pensions or benefits.

Passage of a school facilities improvement bond measure will help the District qualify for State matching funds that otherwise may be lost to other school districts.

Maintaining outstanding public schools within the District will help protect the quality of life and property values of residents.

BOND AUTHORIZATION

By approval of this proposition by at least 55% of the voters of the Palo Alto Unified School District (the "District") voting on the proposition, the District shall be authorized to issue and sell bonds of up to $460,000,000 in aggregate principal amount to provide financing for the specific school facilities projects listed under the heading entitled "BOND PROJECT LIST" below (the "Bond Project List"), and qualify to receive State of California matching grant funds, subject to all of the accountability safeguards specified below.

ACCOUNTABILITY SAFEGUARDS

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

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

Limitations on Use of Bonds. Proceeds from the sale of bonds authorized by this proposition shall be used only for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities, including, to the extent permitted by law, the acquisition or lease of real property in connection with an existing or future financing of the specific school facilities projects listed in the Bond Project List, including the prepayment of existing or future interim lease, certificate of participation or lease revenue bond financings, and not for any other purpose, including teacher and administrator salaries and other school operating expenses.

Independent Citizens' Oversight Committee. The Board shall establish an independent citizens' oversight committee (pursuant to Education Code Section 15278 et seq.), to ensure bond proceeds are expended only for the school facilities projects listed in the Bond Project List. The committee shall be established within 60 days of the date that the Board enters the election results on its minutes pursuant to Section 15274 of the Education Code. In accordance with Section 15282 of the Education Code, the citizens' oversight committee shall consist of at least seven members and shall include a member active in a business organization representing the business community located within the District, a member active in a senior citizens' organization, a member active in a bona fide taxpayers' organization, a member that is a parent or guardian of a child enrolled in the District, and a member that is both a parent or guardian of a child enrolled in the District and active in a parent-teacher organization. No employee or official of the District and no vendor, contractor or consultant of the District shall be appointed to the citizens' oversight committee.

Annual Performance Audits. The Board shall conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the school facilities projects listed in the Bond Project List. These audits shall be conducted in accordance with the Government Auditing Standards issued by the Comptroller General of the United States for performance audits. The results of these audits shall be made publicly available and shall be submitted to the citizens' oversight committee in accordance with Section 15286 of the Education Code.

Annual Financial Audits. The Board shall conduct an annual, independent financial audit of the bond proceeds until all of those proceeds have been spent for the school facilities projects listed in the Bond Project List. These audits shall be conducted in accordance with the Government Auditing Standards issued by the Comptroller General of the United States for financial audits. The results of these audits shall be made publicly available and shall be submitted to the citizens' oversight committee in accordance with Section 15286 of the Education Code.

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Special Bond Proceeds Account; Annual Report to Board. Upon approval of this proposition and the sale of any bonds approved, the Board shall take actions necessary to establish an account in which proceeds of the sale of bonds will be deposited. As long as any proceeds of the bonds remain unexpended, the Superintendent of the District shall cause a report to be filed with the Board no later than January 1 of each year, commencing on the first January 1 after the sale of the first series of bonds, stating (a) the amount of bond proceeds received and expended in that year, and (b) the status of any project funded or to be funded from bond proceeds. The report may relate to the calendar year, fiscal year, or other appropriate annual period as the Superintendent of the District shall determine, and may be incorporated into the annual budget, audit, or other appropriate routine report to the Board.

FURTHER SPECIFICATIONS

Joint-Use Projects. The District may enter into agreements with other public agencies or nonprofit organizations for joint use of school facilities financed with the proceeds of the bonds in accordance with Education Code Section 17077.42 (or any successor provision). The District may seek State grant funds for eligible joint-use projects as permitted by law, and this proposition hereby specifies and acknowledges that bond funds will or may be used to fund all or a portion of the local share for any eligible joint-use projects identified in the Bond Project List or as otherwise permitted by California State regulations, as the Board shall determine.

Single Purpose. All of the purposes enumerated in this proposition shall be united and voted upon as one single proposition, pursuant to Education Code Section 15100, 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, pursuant to California Government Code Section 53410.

Other Terms of the Bonds. When sold, the bonds shall bear interest at an annual rate not exceeding the statutory maximum, and that interest shall be made payable at the time or times permitted by law. The bonds may be issued and sold in several series, and no bond shall be made to mature more than the statutory maximum number of years from the date borne by that bond.

BOND PROJECT LIST

The Bond Project List below lists the specific projects the District proposes to finance with proceeds of the bonds. The Bond Project List shall be considered a part of the bond proposition and shall be reproduced in any official document required to contain the full statement of the bond proposition. Listed projects will be completed as needed at a particular school or facility site according to Boardestablished priorities, and the order in which such projects appear on the Bond Project List is not an indication of priority for funding or completion. Any authorized repairs shall be capital expenditures. The Bond Project List does not authorize non-capital expenditures. Each project is assumed to include its share of costs of the election and bond issuance, construction-related costs, such as project and construction management, architectural, engineering, inspection and similar A-5
4163-6506-0625.7 planning and testing costs, demolition and interim housing costs, legal, accounting and similar fees, costs related to the independent annual financial and performance audits, a contingency for unforeseen design and construction costs, and other costs incidental to or necessary for completion of the listed projects (whether the related work is performed by the District or third parties). The final cost of each project will be determined as plans are finalized, construction bids are awarded, and projects are completed. In addition, certain construction funds expected from nonbond sources have not yet been secured. Therefore, the Board cannot guarantee that the bonds will provide sufficient funds to allow completion of all listed projects. Alternatively, if the District obtains unexpected funds from non-bond sources with respect to listed projects, such projects may be enhanced, supplemented or expanded to the extent of such funds. Some projects may be subject to further government approvals, including by State officials and boards and/or local environmental or agency approval. Inclusion of a project on the Bond Project List is not a guarantee that the project will be completed (regardless of whether bond funds are available). The Board of Education may undertake repairs, rehabilitations, improvements, acquisitions, or new construction to complete each or any of the projects listed herein as may be determined desirable by the District at the time the project is undertaken. The Board of Education may make changes to the Bond Project List in the future consistent with the projects specified in the proposition. Section headings are not part of the project list and are provided for convenience only.

The specific projects authorized to be financed at all current and future District sites with proceeds of the bonds under this proposition are as follows:

Projects Improving School Safety and Accessibility

• ? Accessibility additions and improvements for students, teachers and staff with disabilities
• ? Seismic improvements for earthquake safety
• ? Security and safety systems and infrastructure, including, but not limited to, motion sensors, perimeter fences, public address systems, door locks and controls, fire alarms, smoke detectors, intrusion alarms, etc.
• ? Parking lot and drop off reconfiguration
• ? Upgrade to facilities supporting student transportation and facility maintenance, including, but not limited to the District Corporation Yard
• ? Interior and exterior lighting
• ? Removal of hazardous materials such as asbestos and lead paint as needed

Repair, Renovation and Enhancement of School Facilities and Grounds

• ? Heating, ventilation and air conditioning system and infrastructure

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• ? Electrical systems and infrastructure
• ? Gas systems
• ? Landscape, hardscape, and grass areas, including, but not limited to, seating, pathways, lighting, etc.
• ? Lighting systems, fixtures, and infrastructure
• ? Parking areas, driveways, hardcourts, and other asphalt-paved areas, including, but not limited to, accommodating alternative transportation such as bicycles
• ? Playgrounds, playground equipment, playfields, play areas, sports fields, fields, including, but not limited to, inclusive playgrounds, bleachers, seating, pathways, lighting, etc.
• ? Plumbing systems, fixtures, and infrastructure
• ? Solar and other renewable energy systems
• ? Real property acquisition, including by prepayment of lease payments
• ? Roofs, including, but not limited to, gutters, and downspouts
• ? School buildings, including, but not limited to, new schools, building facades, painting, signage, etc.
• ? Shade structures
• ? Storm/sewage systems and infrastructure
• ? Technology and data systems, equipment, and infrastructure
• ? Water system and infrastructure
• ? Windows, doors, door locks, floors, walls, and ceilings
• ? Acquire/construct workforce housing

Projects to Improve Classrooms, Science Labs, Learning Spaces and Student Support Facilities

• ? Classrooms, including, but not limited to, reconfiguration or enlargement
• ? Kinder classrooms, including, but not limited to, bringing them to District standard
• ? Enrichment classrooms, e.g., music, science, and arts

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• ? Career Technical Education classrooms, including, but not limited to, renovation
• ? Portable classrooms, including, but not limited to, replacing portable classrooms with permanent classrooms
• ? Science labs
• ? Computer labs
• ? Flexible lab spaces
• ? Libraries
• ? Learning centers
• ? Outdoor learning areas
• ? Visual & Media Arts rooms
• ? Multi-purpose areas
• ? Performing Arts classrooms and support spaces
• ? Auditoriums and theaters, including, but not limited to, Haymarket Theater and Spangenberg Theater
• ? Cafeterias, kitchens, eating and food service areas, including, but not limited to, central kitchen
• ? Multi-purpose rooms
• ? Shops, studios, labs, and boiler rooms
• ? Student support facilities, including, but not limited to, resource centers, wellness centers, administration buildings & space, including, but not limited to, reconfiguration, offices, etc.
• ? Playgrounds, including, but not limited to, basketball and tennis courts
• ? Athletic facilities, including, but not limited to gyms, locker rooms, showers, dance studio, team rooms
• ? Football/Soccer/Baseball stadiums, including, but not limited to, fields, bleachers, turf, lighting
• ? Pool improvements
• ? Collaborative work spaces
• ? Child Care facilities

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• ? Storage Areas

All or portions of these projects may be used as joint-use projects within the meaning of Section 17077.42(c) of the Education Code (or any successor provision).

All listed bond projects include the following as needed:

• ? Removal of hazardous materials such as asbestos and lead paint as needed
• ? Construction and/or installation of access improvements for disabled persons, as required by state and federal law
• ? Associated onsite and offsite development, demolition and other improvements made necessary by listed bond projects
• ? Planning, designing and providing temporary housing necessary for listed bond projects
• ? Purchase of any rights-of-way and/or easements made necessary by listed bond projects
• ? Acquisition of all or a portion of any school site or facility, or an interest therein, encumbered in order to finance or refinance the listed school facilities projects

Measure Z Tax Rate Statement

PR-8403-5-ENG

TAX RATE STATEMENT

An election will be held in the Palo Alto Unified School District (the "District") on November 6, 2018, to authorize the sale of up to $460,000,000 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 3.94 cents per $100 ($39.40 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 2045-46.
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 3.94 cents per $100 ($39.40 per $100,000) of assessed valuation in fiscal year 2025-26.
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 $805,000,000.

Voters should note that 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, which could be more or less than the assessed value. In addition, taxpayers eligible for a property tax exemption, such as the homeowner's exemption, will be taxed at a lower effective tax rate than described above. Certain taxpayers may also be eligible to postpone payment of taxes. Property owners should consult their own property tax bills and tax advisors 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 average annual tax rate, the highest tax rate and the year or years in which it will apply, and the actual total debt service, 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, including the legal limitations on bonds approved by a 55% affirmative 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: June 19, 2018.

/s/ Karen Hendricks
Interim Superintendent, Palo Alto Unified School District

Measure Z Agenda Description

Agenda of June 19, 2018 (complete item)

Agenda Item Details

Measure Z Resolution

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RESOLUTION NO. 2017-18.19

RESOLUTION OF THE BOARD OF EDUCATION OF THE
PALO ALTO UNIFIED SCHOOL DISTRICT ORDERING A
SCHOOL BOND ELECTION, AND AUTHORIZING
NECESSARY ACTIONS IN CONNECTION THEREWITH

________________________________

WHEREAS, the Palo Alto Unified School District (the "District") is known for its rich tradition of educational excellence and is committed to continuing to provide quality education to ensure student achievement remains among the top in the state and nation; and

WHEREAS, our outstanding schools help maintain our quality of life and keep Palo Alto a desirable place to live; and

WHEREAS, the community overwhelmingly supported the Strong Schools Bond in 2008, to fund significant improvements to our schools of which projects were completed on time and on budget; and

WHEREAS, this measure was only intended to address approximately half of the facility needs identified at that time and the District is planning the next phase of improvements to school facilities; and

WHEREAS, upgrades are needed to ensure school facilities are accessible for students with disabilities and equitable for all; and

WHEREAS, repairs are needed at school facilities, including, but not limited to, increasing school safety and security such as fire alarms, door locks and emergency communications systems as well as completing seismic safety upgrades to meet current standards to keep students safe in the event of an earthquake; and

WHEREAS, upgrades are needed to many classrooms and labs to support up-to-date science, technology, engineering and robotics instruction; and

WHEREAS, up-to-date facilities help to maintain Palo Alto's outstanding performing and visual arts programs; and

WHEREAS, passage of a school facilities improvement bond measure will provide locally controlled funding that cannot be taken away by the State of California and must stay in our local community to improve local schools; and

WHEREAS, a school facilities improvement bond measure will require strict fiscal accountability requirements, including an independent citizens' oversight committee, mandatory annual audits and a prohibition against any funds being used for administrators' salaries, pensions or benefits; and

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WHEREAS, passage of a school facilities improvement bond measure will help the District qualify for State matching funds that otherwise may be lost to other school districts; and

WHEREAS, maintaining outstanding public schools within the District will help protect the quality of life and property values of residents; and

WHEREAS, the Board of Education (the "Board") of the District, located in the County of Santa Clara (the "County"), is authorized to order elections within the District and to designate the specifications thereof, pursuant to Sections 5304 and 5322 of the California Education Code (the "Education Code"); and

WHEREAS, the Board is specifically authorized to order elections for the purpose of submitting to the electors the question of whether bonds of the District shall be issued and sold for the purpose of raising money for the purposes hereinafter specified, pursuant to Education Code Sections 15100 et seq.; and

WHEREAS, pursuant to Section 18 of Article XVI and Section 1 of Article XIIIA of the California Constitution, and Section 15266 of the Education Code, school districts may seek approval of bonds and levy an ad valorem tax to repay those bonds upon a 55% vote of those voting on a proposition for the purposes hereinafter specified, provided certain accountability requirements are included in the proposition, including (a) that the proceeds from the sale of the bonds be used only for the purposes specified in Article XIIIA, Section 1(b)(3) of the Constitution, and not for any other purpose, including teacher and administrator salaries and other school operating expenses, (b) that a list of the specific school facilities projects to be funded be included, which the school district board has certified that it has evaluated safety, class size reduction and information technology needs in developing, and (c) that performance and financial audits be required and there be oversight by an independent citizens' oversight committee to ensure that all funds are spent properly and as promised to the voters; and

WHEREAS, the Board deems it necessary and advisable to submit such a bond proposition to the electors, which, if approved by 55% of the votes cast, would permit the District to issue its bonds; and

WHEREAS, such a bond election must be conducted concurrent with a statewide primary election, general election or special election, or at a regularly scheduled local election at which all of the electors of the District are entitled to vote, as required by Section 15266 of the Education Code; and

WHEREAS, on November 6, 2018, a statewide general election is scheduled to be conducted throughout the District; and

WHEREAS, subsection (c) of Section 15100 of the Education Code provides that, before the governing board of a school district may order an election pursuant to Education Code Sections 15100 et seq., it shall obtain reasonable and informed projections of assessed property valuations that take into consideration projections of assessed property valuations made by the county assessor; and

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WHEREAS, although Santa Clara County Assessor does not make projections of assessed property valuations, the Board has been presented projections of assessed property valuations of the property within the boundaries of the District in connection with developing the bond proposition that take into consideration, among other things, the long-term historical average growth rates of assessed property valuations of the property within the boundaries of the District and the Board finds those projections to be reasonable and informed; and

WHEREAS, the Board has determined that, based upon such projections of assessed property valuation, 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 maximum tax rate permitted by Section 15270 of the Education Code; and

WHEREAS, Section 9400 et seq. of the California Elections Code (the "Elections Code") requires that a tax rate statement be contained in all official materials, including any voter information guide prepared, sponsored or distributed by the District, relating to the election; and

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

WHEREAS, if a project or projects to be funded by the bonds will require State of California matching grant funds for any phase, the sample ballot must contain a statement, in the form prescribed by law, advising the voters of that fact, and the Board finds that completion of no portion of the projects listed in the bond proposition set forth herein will require State matching grant funds for any phase thereof;

NOW, THEREFORE, be it resolved, determined and ordered by the Board of Education of the Palo Alto Unified School District as follows:

Section 1. Recitals. All of the above recitals are true and correct.

Section 2. Specifications of Election Order; Required Certification. Pursuant to Education Code Sections 5304, 5322, 15100 et seq., and 15266, and Section 18 of Article XVI and Section 1 of Article XIIIA of the California Constitution, a special election shall be held within the boundaries of the District on November 6, 2018, for the purpose of submitting to the registered voters of the District the bond proposition contained in Exhibit A attached hereto and incorporated herein. In accordance with Section 1 of Article XIIIA of the California Constitution, and as provided in the text of the bond proposition, the Board hereby certifies that it has evaluated safety, class size reduction and information technology needs in developing the bond project list set forth in the bond proposition.

Section 3. Conduct of Election.

1. (a) Request to County Officers. Pursuant to Section 5303 of the Education Code, the Registrar of Voters of the County (the "Registrar of Voters") is required to, and is hereby requested to, take all steps to hold the election in accordance with law and these specifications.
2. (b) Abbreviation of Proposition. Pursuant to Section 13247 of the Elections Code and Section 15122 of the Education Code, and so long as Assembly Bill 195 (Chapter 105, Statutes of 2017) is not in effect, the Board hereby directs the Registrar of Voters to use the abbreviation of 4
   4163-6506-0625.7 the bond proposition contained in Exhibit A on the ballot. If Assembly Bill 195 (Chapter 105, Statutes of 2017) is in effect, the Board hereby directs the Registrar of Voters to use the following abbreviation of the bond proposition: "To provide safe/modern schools; upgrade aging classrooms, libraries, science labs, school facilities; improve accessibility for students with disabilities; enhance student safety/security by upgrading seismic safety, fire alarms, door locks, emergency communication; provide classrooms/labs supporting science, technology, engineering, arts programs, shall Palo Alto Unified School District issue $460,000,000 in bonds at legal rates, levy approximately $39.40 per $100,000 of assessed value, generating approximately $29,500,000 annually for 28 years, with independent oversight and all funds benefitting local schools?"
3. (c) Voter Pamphlet. The Registrar of Voters is hereby requested to reprint the full text of the bond proposition as set forth in Exhibit A in its entirety in the voter information pamphlet to be distributed to voters pursuant to Section 13307 of the Elections Code. In the event the full text of the bond proposition is not reprinted in the voter information pamphlet in its entirety, the Registrar of Voters is hereby requested to print, immediately below the impartial analysis of the bond proposition, in no less than 10-point boldface type, a legend substantially as follows:

"The above statement is an impartial analysis of Measure __. If you desire a copy of the measure, please call the Santa Clara County Registrar of Voters at (___) ___-____ or the Palo Alto Unified School District at (___) ___-____, and a copy will be mailed at no cost to you. Measure __ is also available on the Internet at http://www._______________."

4. (d) Accountability Safeguards. In the event the full text of the bond proposition is not reprinted in the voter information pamphlet in its entirety, the Registrar of Voters is hereby requested to include the following statement in the ballot in compliance with Section 15272 of the Education Code:

"If Measure __ is approved, the Board of Education of the Palo Alto Unified School District will appoint a citizens' oversight committee and conduct annual independent audits to assure that bond funds are spent only on the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities, and for no other purposes."

5. (e) State Matching Funds. The District has determined that the projects to be funded from the proposed bonds will not require State matching funds for any phase thereof, and that Section 15122.5 of the Education Code does not apply to the bond proposition, and accordingly, the Registrar of Voters is directed not to include the disclosure otherwise required by Section 15122.5 of the Education Code.
6. (f) Consolidation Requirement. Pursuant to Section 15266(a) of the Education Code, the election shall be consolidated with the statewide general election on November 6, 2018, and pursuant to Education Code Section 5342 and Part 3 (commencing with Section 10400) of Division 10 of the Elections Code, the Registrar of Voters and the Board of Supervisors of the County are 5
   4163-6506-0625.7 hereby requested to order consolidation of the election with such other elections as may be held on the same day in the same territory or in territory that is in part the same. The District hereby acknowledges that the consolidated election will be held and conducted in the manner prescribed by Section 10418 of the Elections Code.
7. (g) Canvass of Results. The Board of Supervisors of the County is authorized and requested to canvass the returns of the election, pursuant to Section 10411 of the Elections Code.
8. (h) Required Vote. Pursuant to Section 18 of Article XVI and Section 1 of Article XIIIA of the California Constitution, the bond proposition shall become effective upon the affirmative vote of at least 55% of the voters of the District voting on the proposition.
9. (i) Election Costs. The District shall pay all costs of the election approved by the Board of Supervisors of the County pursuant to Education Code Section 5421.

Section 4. Delivery of Order of Election to County Officers. The Clerk of the Board of the District is hereby directed to cause to be filed as soon as practicable, and in any event no later than August 10, 2018 (which date is not fewer than 88 days prior to the date set for the election), one copy of this Resolution to the Registrar of Voters, including the tax rate statement attached hereto as Exhibit B, containing the information required by Elections Code Section 9400 et seq., completed and signed by the Superintendent of the District, and shall file a copy of this Resolution with the Clerk of the Board of Supervisors of the County.

Section 5. Ballot Arguments. The President of the Board, or any member or members of the Board as the President shall designate, are hereby authorized, but not directed, to prepare and file with the Registrar of Voters a ballot argument in favor of the bond proposition, within the time established by the Registrar of Voters, which shall be considered the official ballot argument of the Board as sponsor of the bond proposition.

Section 6. Further Authorization. The members of the Board, the Superintendent of the District, and all other officers of the District are hereby authorized and directed, individually and collectively, to do any and all things that they deem necessary or advisable in order to effectuate the purposes of this resolution in accordance with the terms hereof and of applicable provisions of law.

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Section 7. Effective Date. This Resolution shall take effect upon its adoption by a two-thirds vote.

PASSED AND ADOPTED this day, _____________, 2018, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT: APPROVED:

___________________________________
President of the Board of Education of the
Palo Alto Unified School District

Attest:

___________________________________
Clerk of the Board of Education of the
Palo Alto Unified School District

4163-6506-0625.7

CLERK'S CERTIFICATE

I, _________, Clerk of the Board of Education of the Palo Alto Unified School District, County of Santa Clara, California, hereby certify as follows:

The attached is a full, true and correct copy of a resolution duly adopted at a regular meeting of the Board of Education of the District duly and regularly held at the regular meeting place thereof on _____________, 2018, and entered in the minutes thereof, of which meeting all of the members of the Board of Education had due notice and at which a quorum thereof was present. The resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

An agenda of the meeting was posted at least 72 hours beforehand at 25 Churchill Avenue, Palo Alto, California, a location freely accessible to members of the public, and a brief description of the adopted resolution appeared on the agenda. A copy of the agenda is attached hereto. The resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect.

WITNESS my hand this ______ day of ______________, 2018.

Clerk of the Board of Education
Palo Alto Unified School District