Hawthorne Schools: Vote Yes on Measure HSD Bonds - Los Angeles County - 2018 primary 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 HSD Campaign

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, it to see the commentary.

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

Measure HSD Question

A-1
DOCSSF/141912v9/200768-0001

EXHIBIT A

"HAWTHORNE SCHOOL DISTRICT SCHOOL REPAIR/IMPROVEMENT MEASURE. To repair aging classrooms, ensure student health, safety and achievement and keep pace with technology, upgrade aging plumbing, electrical, lighting, heating/ventilation, safety/security systems, shall this Hawthorne School District measure be adopted to repair, construct, acquire classrooms, sites/equipment, and issue $59,000,000 in bonds, at legal rates, levy on average ($3,000,000 annually) while bonds are outstanding, require , and all money for local schools?"

Bonds: Yes____ No____

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

Impartial Analysis for Measure HSD

IMPARTIAL ANALYSIS OF MEASURE HSD

By Mary C. Wickham, County Counsel

Approval of Measure HSD ("Measure") would authorize the Hawthorne School District ("District"), to issue general obligation bonds in an amount not to exceed $59,000,000. The Measure was placed on the ballot by the Board of Trustees ("Board") of the District by Resolution No.14.

Proceeds from the sale of the bonds authorized by the Measure shall be used only for the purposes specified in the Measure, including, but not limited to, repairing aging classrooms, bathrooms, and windows; replacing water pipes and drinking fountains; improving accessibility for disabled persons; upgrading heating/ventilation, plumbing, and gas lines; upgrading fire alarms and safety systems; and upgrading classroom labs, computer systems, electrical systems, and wiring for computer technology and internet access. Other specified developments include improving student safety with campus security systems, through lighting, cameras, locks, emergency communication systems, and security fencing; ensuring playground structures meet current health and safety standards; and repairing and improving the District's central office, the maintenance yard, print shop, and other District locations. Bond proceeds may not be expended on teacher and administrator salaries and other operating expenses.

The Board shall cause independent performance and financial audits to be conducted annually to ensure that bond proceeds are spent only for projects identified in the Measure. The Board shall appoint an independent Citizens' Oversight Committee ("Committee") in compliance with Education Code section 15278 no later than 60 days after the Board enters the election results in its minutes. The Committee will ensure that bond proceeds are spent as specified in the Measure and as provided by law. The District shall create an account into which proceeds of the bond shall be deposited and shall comply with the reporting requirements of Government Code section 53410.

The bonds shall not exceed the maximum interest rate or maturity as allowed by law. The tax levy authorized to secure bonds shall not exceed the Proposition 39 limits per 100,000 of taxable property in the District when assessed valuation is projected by the District to increase.

According to the District's Tax Rate Statement, the best estimate of the highest tax rate required to fund the bond issue, which is estimated to be fiscal year 2019-20, is $30.00 per $100,000, based on a projection of assessed valuation available when the District filed its Tax Rate Statement.

This Measure requires a fifty-five percent (55%) vote for passage.

M00005462E-6
LA 187-041

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

Argument in Favor of Measure HSD

2

ARGUMENT IN FAVOR OF MEASURE HSD

Vote YES for HSD - repair and update local schools in the Hawthorne School District to give all our students the tools necessary for success.

Maximizing every students potential to achieve educational excellence requires suitable environments for student learning.

Specifically Measure HSD will:

  • - Create a more inclusive and welcoming learning environment
  • - Modernize outdated classrooms, restrooms, and school facilities
  • - Provide well maintained and efficient learning environments by repairing deteriorating plumbing and replacing outdated heating, ventilation, and air conditioning systems
  • - Enhance campus security
  • - Increase student access to modern technology

Fiscal accountability is required bylaw:

  • - All funds raised by Measure HSD benefit local Hawthorne School District students - not a penny can be taken by the state or other school districts
  • - An independent citizens' oversight committee ensures funds are spent as promised
  • - No funds can be used for administrator salaries

A YES vote for Measure HSD is a vote for the future of our students.

3

Dr. Eugene M. Krank /s/
President, H.S.D. Board of Trustees March 13, 2018

Cristina Chiappe /s/
Vice President, H.S.D. Board of Trustees March 13, 2018

Alexandre Monteiro /s/
Clerk, H.S.D. Board of Trustees March 13, 2018

Luciano A. Aguilar /s/
Member, H.S.D. Board of Trustees March 13, 2018

Sergio R. Mortara /s/
Member, H.S.D. Board of Trustees March 13, 2018

Filer:

Mara Pagniano

14120 Hawthorne Blvd., Hawthorne, CA 90250 mpagniano@hawthorne.k12.ca.us

310-263-3905 310-863-8652 310-675-9464

2018 MAR 15 PM 4:34

RECEIVED

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

Rebuttal to Argument in Favor of Measure HSD

REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE HSD

Just tired old cliches written by slick lawyers and advisors!

Back in March, did you know Hawthorne School District had ordered an election for a huge, new, $114,000,000 tax on your home? Do you feel compelled to reward reckless spending and poor management? If not for us, you wouldn't get the whole story.

NO ADMINISTRATOR SALARIES?

Constitution says no salaries. Statutes say no salaries. Resolution, question, measure, and argument say no salaries. Guess what lawyers snuck in! Hint: "school administrator salaries." Salaries will be paid. You can take that to the bank.

FACTS

How did District get to $59,000,000? It's maximum they can tax in one measure.

Measure HSD is a contract. Have you read the fine print? Besides District salaries, what else does it pay for? -- "staff training," "lease obligations," "central office," and on and on.

Are schools REALLY falling apart? Have you ever read School Accountability Report Cards? (sarconline.org) Four school facilities are rated "exemplary," seven "good." Not a "heating, ventilation, plumbing and electrical" problem in the lot. Who's being deceptive and dishonest here?

District's spent $74,718,588 for these promises in Measure A (1997) ($28,000,000), Measure H (2004) ($24,000,000), Measure H (2008) ($20,000,000). Why pay for it again? Have you ever seen oversight reports?

BOTTOM LINE

Can you trust District? Seen enough yet? When you're not looking, will District breach law, its promises, and your trust?

Would you really agree to written contract where promises weren't explicitly, unambiguously written into it?

Don't be deceived! Don't sign blank check. Vote NO! http://bit.ly/NoHawthorneBond

G. RICK MARSHALL
Chief Financial Officer, California Taxpayers Action Network

M00005462E-8
LA 187-043

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

Argument Against Measure HSD

ARGUMENT AGAINST MEASURE HSD

Parents, do you hold your children accountable?

Supporting our schools is good. Wasting your money on vague, unenforceable promises is bad.

Don't be deceived. District's campaign is funded by vendors who will likely benefit from bond spending. (pay-to-play?) Beware high-priced marketers masquerading as "parents, teachers, and community leaders."

Vote No on Measure HSD. Why?

- It's virtually, word-for-word, identical to every other bond measure written by lawyers and advisors who made $3,605,783 (paid by you, with interest) from facilities bonds since 2005.

- Did you hear about a list of projects? Why isn't there a list of SPECIFIC projects in Measure HSD? Because it would restrict the District spending to ONLY those things.

- Can you trust District? Why did it ignore oversight laws over many years for Measure H (2004) ($24,000,000)? Measure H (2008) ($20,000,000)?

- Did you know that District issued $42,574,549 in facilities bonds since 2005? $74,718,588 since 1997? Where has it ALL gone?

- Did you know District issued interest only bonds 7 times? Poway Unified taxpayers ended up paying 10 times the amount borrowed for similar bonds.

Current law permits a bare majority of voters (55%) to approve Measure HSD provided "… that BEFORE they vote, voters will be given a list of specific projects their bond money will be used for…". Measure HSD is required to be a "list of the specific school facilities projects to be funded." Measure HSD's intentionally vague language gives District a BLANK CHECK with NO ACCOUNTABILITY.

Don't waste your hard-earned money on vague promises. Did District keep promises from Measure H (2008)? Measure H (2004)? It spent $74,718,588 and still has "deteriorating heating, ventilation, plumbing and electrical systems?"

Bond money is like drugs. Don't give District another fix. Just say NO!

Want more evidence of District's deception? http://bit.ly/NoHawthorneBond

G. RICK MARSHALL
Chief Financial Officer, California Taxpayers Action Network

M00005462E-9
LA 187-044

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

Rebuttal to Argument Against Measure HSD

REBUTTAL TO ARGUMENT AGAINST MEASURE HSD

A YES vote for Measure HSD is a vote for the future of our students and our community. The Hawthorne School District takes pride in its history of thoughtful and responsible decision-making. Accountability to our families and community has been and continues to be a top priority in the Hawthorne School District.

The past bonds of the Hawthorne School District resulted in new classrooms, two gymnasiums, initial installation of security cameras at all sites, and school site upgrades. The Hawthorne School District Bond Oversight Committees carefully reviewed all past bond expenditures and determined that they were all allowable and appropriately made.

Most of the schools in the Hawthorne School District were constructed over sixty years ago. In order to keep up with community standards and prepare students to compete in the global market, we must have schools that meet the needs of the community and our students. Please help our students achieve educational excellence by improving their learning environments.

A YES vote on Measure HSD is a vote for the future of Hawthorne.

DR. EUGENE M. KRANK
President, H.S.D. Board of Trustees

CRISTINA CHIAPPE
Vice President, H.S.D. Board of Trustees

ALEXANDRE MONTEIRO
Clerk, H.S.D. Board of Trustees

LUCIANO A. AGUILAR
Member, H.S.D. Board of Trustees

SERGIO R. MORTARA
Member, H.S.D. Board of Trustees

M00005462E-10
LA 187-045

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Full Text of Measure HSD

B-1
DOCSSF/141912v9/200768-0001

EXHIBIT B

FULL TEXT BALLOT PROPOSITION
OF THE HAWTHORNE SCHOOL DISTRICT
BOND MEASURE ELECTION JUNE 5, 2018

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

"HAWTHORNE SCHOOL DISTRICT SCHOOL REPAIR/IMPROVEMENT MEASURE. To repair aging classrooms, ensure student health, safety and achievement and keep pace with technology, upgrade aging plumbing, electrical, lighting, heating/ventilation, safety/security systems, shall this Hawthorne School District measure be adopted to repair, construct, acquire classrooms, sites/equipment, and issue $59,000,000 in bonds, at legal rates, levy on average 3 cents/$100 assessed value ($3,000,000 annually) while bonds are outstanding, require independent audits/oversight, and all money for local schools?"

PROJECT LIST

The Board of Trustees ("Board") of the Hawthorne School District is committed to repairing old schools by fixing deteriorating classrooms, and ensuring the safety and security of all students. To that end, the Board received input from teachers, staff and the community and evaluated the District's urgent and critical facility needs, including the need for up-to-date technology, safety issues, class size reduction, computer and information technology, and prepared a Facilities Needs Assessment, dated as of January 2016, which Assessment is , in developing the scope of projects to be funded. Therefore, in approving this Project List, the Board of Education determines that the District must:

  1. (i) Provide clean and safe classrooms, and a quality learning environment for current and future local students; and
  2. (ii) Upgrade classrooms and computer systems to keep pace with technology; and
  3. (iii) Upgrade deteriorating heating, ventilation, plumbing and electrical systems; and
  4. (iv) Update accessibility for disabled persons; and
  5. (v) Adhere to specific fiscal accountability safeguards such as:
    1. (a) ENSURE ALL FUNDS ARE ONLY USED LOCALLY,
    2. (b) Prohibited the State from taking any of the funds raised,
    3. (c) REQUIRE THAT EXPENDITURES MUST BE SUBJECT TO ANNUAL INDEPENDENT FINANCIAL AUDITS, AND
    4. (d) Require independent citizens' oversight of bond funds.

B-2
DOCSSF/141912v9/200768-0001

The Project List includes the following at the following District schools, with their :

Eucalyptus ES (1950)
Jefferson ES (1949)
Kornblum ES (2000)
Ramona ES (1949)
Washington ES (1939)
York ES (1950)
Zela Davis ES (1950)
Prairie Vista MS (2007)
Bud Carson MS (1955)
Hawthorne MS (1949)

REPAIR OLD SCHOOLS:
Renovation, Repair and Upgrade Projects

Goal and Purpose: Most local schools were built over 65 years ago and need significant repairs. This measure will fix deteriorating classrooms, bathrooms, and replace outdated air conditioning, heating and electrical systems so children can learn in safe, healthy classrooms.

  • ? Replace aging water pipes, and drinking fountains.
  • ? Repair aging classrooms, bathrooms and windows.
  • ? Improve accessibility for disabled persons.
  • ? Upgrade outdated heating, ventilation, plumbing and electrical systems and gas lines.
  • ? Upgrade fire alarms systems, including fire safety doors, smoke alarms, and detectors.
  • ? Upgrade classrooms, labs and computer systems to keep pace with technology.

STUDENT HEALTH AND SAFETY:
Student Safety and Security Projects

  • ? Upgrade fire safety systems.
  • ? Replace alarm systems.
  • ? Improve student safety and campus security systems, including security lighting, cameras, locks, and emergency communication systems.
  • ? Improve security fencing.
  • ? Provide disabled accessibility.
  • B-3
    DOCSSF/141912v9/200768-0001

  • ? Ensure children's playground structures and equipment meet current health and safety standards.

UPGRADE TECHNOLOGY:
District-Wide Technology and Wiring Projects
To Provide a 21st Century Education

  • ? Upgrade electrical systems and wiring for computer technology and internet access.
  • ? Increase Wi-Fi access and wireless capability

* * *

The listed projects will be completed . is assumed to include its share of furniture, equipment, architectural, engineering, and similar planning costs, program management, and a customary contingency, and escalation for unforeseen design and construction costs. In addition to the listed projects stated above, the Project List also includes the , environmental studies, construction documentation, inspection and permit fees, and temporary housing of dislocated District activities caused by bond projects, as well as the refinancing of outstanding lease obligations. The upgrading of technology infrastructure includes, but is not limited to, servers, switches, routers, modules, computers, district-wide computer labs upgrades, smart boards, cameras, sound projection systems, wiring classrooms for internet connectivity, wireless networks, wireless access points and controllers, portable interface devices, mobile device management systems, printers, upgraded voice-over-IP, phone systems, call manager and network security/firewall, and other miscellaneous equipment. The repair and improvement of school facilities, including , the maintenance yard, print shop and other District locations, include the following types of projects: install, acquire or repair energy efficiency improvements for school buildings, energy efficient lighting, air conditioning, heating, insulation and ceiling systems, and windows; construct, upgrade, repair or install school site parking, campus accessibility, utilities, plumbing, gas lines, playground equipment, hard court surfaces, general site paving, learning walls, tack boards, cabinets, tutoring rooms, restrooms, roofs, interior and exterior lighting, water heaters, boilers, walkway covers and casework, bell/clock systems, signage, electronic marquees, asphalt, fire sensors, shade structures, outdated heating systems, multipurpose rooms used for after-school programs, assemblies, sports, and performing arts, playgrounds, play areas, including turf and ; remove asbestos; renovate, upgrade or relocate site classrooms and administration buildings, staff lounges, areas for special need students and staff, parent welcome centers or permit office; construct or upgrade child care/pre-school facilities; upgrades and reconfigure parking lots and drop off/pick up zones to improve student safety; make facility improvements for earthquake safety; upgrade electrical wiring and systems; renovate and paint interior and exterior building surfaces to extend their useful life; improve security, install safety, security and communication systems and equipment, windows and floor coverings (including tiles and carpeting); build or upgrade irrigation systems; upgrade school offices, including furnishings; make improvements and acquire furnishings and/or other electronic equipment and systems. The allocation of bond proceeds may be affected by the District's receipt of State matching funds and the final costs of each project. The budget for each project is an estimate and may be affected by factors beyond the District's control. Some projects throughout the District may be undertaken as joint use projects in cooperation with other local public or non-profit agencies. The final cost of each project will be determined as plans are finalized, construction bids are awarded B-4
DOCSSF/141912v9/200768-0001
and projects are completed. Based on the final costs of each project, certain of the projects described above may be delayed or may not be completed. Demolition of existing facilities and reconstruction of facilities scheduled for repair and upgrade may occur, if the Board determines that such an approach would be more cost-effective in creating enhanced and operationally efficient campuses. Necessary site preparation/restoration and landscaping, may occur in connection with new construction, renovation or remodeling, or installation or removal of relocatable classrooms, including ingress and egress, removing, replacing, or installing irrigation, utility lines, trees and landscaping, redirecting fire access, and acquiring any necessary easements, licenses, or rights of way to the property.

Bond proceeds shall be expended only for the specific purposes identified herein. Proceeds of the bonds may be used to when performing work on or to the bond projects. The District shall create an account into which proceeds of the bonds shall be deposited and comply with the reporting requirements of Government Code § 53410.

FISCAL ACCOUNTABILITY: IN ACCORDANCE WITH EDUCATION CODE SECTION 15272, THE BOARD OF EDUCATION WILL APPOINT A CITIZENS' OVERSIGHT COMMITTEE AND CONDUCT ANNUAL INDEPENDENT AUDITS TO ASSURE THAT FUNDS ARE SPENT ONLY ON DISTRICT PROJECTS AND FOR NO OTHER PURPOSE. THE EXPENDITURE OF BOND MONEY ON THESE PROJECTS IS SUBJECT TO . BY LAW, PERFORMANCE AND FINANCIAL AUDITS WILL BE PERFORMED ANNUALLY, AND ALL BOND EXPENDITURES WILL BE MONITORED BY AN INDEPENDENT CITIZENS' OVERSIGHT COMMITTEE TO ENSURE THAT FUNDS ARE SPENT AS PROMISED AND SPECIFIED. THE CITIZENS' OVERSIGHT COMMITTEE MUST INCLUDE, AMONG OTHERS, REPRESENTATION OF A BONA FIDE TAXPAYERS ASSOCIATION, A BUSINESS ORGANIZATION AND A SENIOR CITIZENS ORGANIZATION. NO DISTRICT EMPLOYEES OR VENDORS ARE ALLOWED TO SERVE ON THE CITIZENS' OVERSIGHT COMMITTEE.

No Administrator Salaries: Proceeds from the sale of the bonds authorized by this proposition shall be used only for the acquisition, construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, and not for any other purpose, including teacher and and other operating expenses. Bond funds shall not be temporarily transferred to the District's general fund for administrative purposes.

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Measure HSD Tax Rate Statement

TAX RATE STATEMENT - MEASURE HSD

An election will be held in the Hawthorne School District (the "District") on June 5, 2018, to authorize the sale of up to $59,000,000 in bonds of the District to finance improvements to educational facilities as described in the measure. If such bonds are authorized and sold, principal and interest on the bonds will be payable only from the proceeds of ad valorem tax levies made upon the taxable property in the District. The following information is provided in compliance with Sections 9400-9404 of the Elections Code of the State of California. Such information is based upon the best estimates and projections presently available from official sources, upon experience within the District and other demonstrable factors.

Based upon the foregoing and projections of the District's assessed valuation, the following information is provided:

  1. 1. The best estimate of the average annual tax rate which would be required to be levied to fund this bond issue over the entire duration of the bond debt service, based on a projection of assessed valuations available at the time of filing of this statement, is 3 cents per $100 of assessed valuation (or $30.00 per $100,000 of assessed value). The final fiscal year in which it is anticipated that the tax will be collected is 2056-57.
  2. 2. The best estimate of the highest tax rate which would be required to be levied to fund this bond issue, based on a projection of assessed valuations available at the time of filing of this statement, is 3 cents per $100 of assessed valuation (or $30.00 per $100,000 of assessed value). It is estimated that such rate would be levied starting in fiscal year 2019-20.
  3. 3. The best estimate of the total debt service, including the principal and interest that would be required to be repaid if all the bonds are issued and sold, is approximately $114 million.

Voters should note the estimated tax rate is based on the assessed value (not market value) of taxable property on the County's official tax rolls. In accordance with Education Code Section 15100 subparagraph (c), the Board has obtained reasonable and informed projections of assessed property valuations that take into consideration projections (if any) of assessed property valuations made by the County Assessor. In addition, taxpayers eligible for a property tax exemption, such as the homeowner's exemption, will be taxed at a lower effective tax rate than described above. Property owners should consult their own property tax bills and tax advisors to determine their property's assessed value and any applicable tax exemptions.

(Continued on next page)
M00005462E-11
LA 187-046
TAX RATE STATEMENT - MEASURE HSD (Continued)

The attention of all voters is directed to the fact that the foregoing information is based upon projections and estimates only. The actual tax rates and the years in which they will apply may vary from those presently estimated, due to variations from these estimates in the timing of bond sales, the amount of bonds sold and market interest rates at the time of each sale, and actual assessed valuations over the term of repayment of the bonds. The date of sale and the amount of bonds sold at any given time will be determined by the District based on its need for construction funds and other factors. The actual interest rates at which the bonds will be sold will depend on the bond market at the time of sale. Actual future assessed valuations will depend upon the amount and value of taxable property within the District as determined by the County Assessor in the annual assessment and the equalization process. Accordingly, the actual tax rates and the years in which such rates are applicable may vary from those presently estimated as above stated.

HELEN E. MORGAN, Ed.D.
Superintendent of the
Hawthorne School District

M00005462E-12
LA 187-047

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Measure HSD Agenda Description

Agenda of February 21, 2018 (complete item)

Regular Meeting
Hawthorne SD
February 21, 2018 6:00PM

VII.d. 2017-2018 Resolution No. 14: Resolution of the Board of Trustees of the Hawthorne School District Ordering an Election, and Establishing Specifications of the Election Order
Recommended Motion:
That the Board adopt 2017-2018 Resolution No. 14 authorizing a bond election for June 5, 2018.
Rationale:

The resolution presented, if adopted by 2/3rds of the members of the Board, would result in a bond measure being placed on the June 5, 2018 ballot.

The resolution before the Board calls an election within the District for the purpose of approving $59 million general obligation bonds, requests that the Los Angeles County Registrar of Voters conduct the election on behalf of the District, and authorizes the preparation of election materials, including ballot arguments and tax rate statement, to be included in the ballot pamphlet.

State law requires the Board of Trustees to order school district bond elections.  The Los Angeles County Registrar of Voters will conduct the election on behalf of the District, including publishing all required notices.  This resolution meets the statutory requirements for describing the projects to be funded with the proceeds of the bonds, which is included as Exhibit B to the resolution.  A 75-word summary of the measure, as it will appear on the ballot, is also included in the resolution as Exhibit A.  The resolution also authorizes the preparation and filing of a tax rate statement, which must be included in the ballot pamphlet, and describes the anticipated rates of tax throughout the life of the bond issue.  The resolution also authorizes, but does not commit, the Board and/or individual members of the Board to prepare and sponsor a ballot argument in support of the bond measure.  No more than five (5) persons may sign the ballot argument.

This election will be called under constitutional and statutory provisions that require fifty-five percent (55%) voter approval, and certain accountability requirements, including annual independent financial and performance audits of how funds are spent, and the formation of a Citizens’ Bond Oversight Committee. Following adoption, the resolution (including the signed tax rate statement) must be delivered to the Registrar of Voters and the Board of Supervisors no later than March 9, 2018.  State law requires that 2/3rd of a school board support the resolution calling an election requiring 55% voter approval.  At least four (4) Board members must vote “Yes” in order to call the election.
 
Comments:
Recommended by: Dr. Helen E. Morgan, Superintendent
Attachments:
Res# 14 Ordering Election 2-21-18

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Measure HSD Resolution

DOCSSF/141912v9/200768-0001

Hawthorne School District
14120 Hawthorne Blvd.
Hawthorne, CA 90250

February 21, 2018

2017-2018
RESOLUTION NO. 14

RESOLUTION OF THE BOARD OF TRUSTEES OF
HAWTHORNE SCHOOL DISTRICT ORDERING AN
ELECTION, AND ESTABLISHING SPECIFICATIONS OF
THE ELECTION ORDER

WHEREAS, the Board of Trustees (the "Board") of the Hawthorne School District (the "District") is committed to maintaining the quality of education in local public schools by updating classroom technology, improving school safety, and making basic repairs to all schools; and

WHEREAS, since the District wants our students prepared to succeed in a 21st Century economy, children need updated full-service schools which are accessible, clean and safe learning environments; and

WHEREAS, the Board believes that to achieve that goal the District must maintain and repair classrooms, facilities and equipment, as needed, so that all facilities and campuses are efficient, safe, secure and up-to-date, all of which are critical for student health and academic performance; and

WHEREAS, the State of California (the "State") does not provide the District with enough money for the District to adequately upgrade its educational facilities and academic programs; and

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

WHEREAS, the Board has received information regarding the possibility of a local bond measure and its impact on protecting student safety, improving schools and making basic repairs to aging facilities; and

WHEREAS, most local Hawthorne schools were built over 65 years ago and need significant repairs, including a school that is over 75 years old, and in order to maintain our awardwinning education, the District must invest in updating core operating infrastructure technology and its classrooms; and

WHEREAS, such a bond measure also can provide funds that cannot be taken away by the State; and

WHEREAS, such a measure must include mandatory taxpayer protections, including an independent citizens' oversight committee and mandatory audits to ensure funds are spent properly; and

WHEREAS, on November 7, 2000, the voters of California approved the Smaller Classes, Safer Schools and Financial Accountability Act ("Proposition 39") which reduced the voter threshold 2
DOCSSF/141912v9/200768-0001
for ad valorem tax levies used to pay for debt service on bonded indebtedness to 55% of the votes cast on a school district general obligation bond; and

WHEREAS, concurrent with the passage of Proposition 39, Chapter 1.5, Part 10, Division 1, Title 1 (commencing with Section 15264) of the Education Code (the "Act") became operative and established requirements associated with the implementation of Proposition 39; and

WHEREAS, the Board desires to make certain findings herein to be applicable to this election order and to establish certain performance audits, standards of financial accountability and citizen oversight that are contained in Proposition 39 and the Act; and

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

WHEREAS, the Board hereby determines that, of the State of California, the restrictions in Proposition 39 which prohibit any bond money from being wasted or used for or other operating expenses of the District shall be monitored strictly by the District's Citizens' Oversight Committee; and

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

WHEREAS, Elections Code Section 9400 et seq. requires that a tax rate statement be contained in all official materials relating to the election, including any ballot pamphlet prepared, sponsored, or distributed by the District; and

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

WHEREAS, pursuant to the 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, June 5, 2018, and to request the Los Angeles County Registrar of Voters to perform certain election services for the District.

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

Section 1. That the Board, pursuant to Education Code Sections 15100 et seq., 15264 et seq., and Government Code Section 53506, hereby requests the Los Angeles County Registrar of Voters to conduct an election under the provisions of Proposition 39 and the Act and submit to the electors of the District the question of whether bonds of the District in the aggregate principal amount of up to $59,000,000 (the "Bonds") shall be issued and sold for the purpose of raising money for the projects described in Exhibits "A" and "B" hereto. Both exhibits are directed to be printed in the voter pamphlet. The District's Superintendent, or designee, is hereby authorized and directed to make any changes to the text of the measure, or to the abbreviated form of the measure, as may be convenient or necessary to comply with the intent of this Resolution, the requirements of elections officials, and requirements of law.

Section 2. That the date of the election shall be June 5, 2018.

Section 3. That the purpose of the election shall be for the voters in the District to vote on a proposition, a copy of which is attached hereto and marked Exhibit "A," incorporated by reference herein, and containing the question of whether the District shall issue the Bonds to pay for improvements to the extent permitted by such proposition. In compliance with Proposition 39 and the Act, the ballot propositions in Exhibits "A" and "B" are subject to the following requirements and determinations:

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

Section 4. That the authority for ordering the election is contained in Education Code Sections 15100 et seq., 15264 et seq., and Government Code Section 53506.

Section 5. That the authority for the specifications of this election order is contained in Education Code Sections 5322.

Section 6. That the Los Angeles County Registrar of Voters and the Los Angeles County Board of Supervisors are hereby requested to consolidate the election ordered hereby with any and all other elections to be held on June 5, 2018 within the District. Pursuant to Elections Code Section 10403, the Board acknowledges that the consolidation election will be held and conducted in the manner described in Elections Code Section 10408.

Section 7. That the Secretary of the Board is hereby directed to deliver a certified copy of this Resolution to the Los Angeles County Registrar of Voters no later than March 9, 2018.

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

Section 9. That the Board requests the governing body of any such other political subdivision, or any officer otherwise authorized by law, to partially or completely consolidate such election and to further provide that the canvass of the returns of the election be made by anybody or official authorized by law to canvass such returns, and that the Board consents to such consolidation. The Board further authorizes the submission of a tax rate statement and primary and rebuttal 5
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arguments, as appropriate, to be filed with the Los Angeles County Registrar of Voters by the established deadlines.

Section 10. Pursuant to Education Code Section 5303 and Elections Code Section 10002, the Board of Supervisors of Los Angeles County is requested to permit the Registrar of Voters to render all services specified by Elections Code Section 10418 relating to the election, for which services the District agrees to reimburse Los Angeles County, such services to include the publication of a Formal Notice of School Bond Election and the mailing of the sample ballot and tax rate statement (described in Elections Code Section 9401) pursuant to the terms of Section 5363 of the Education Code and Elections Code Section 12112.

ADOPTED, SIGNED AND APPROVED this 21st day of February, 2018.

BOARD OF TRUSTEES OF THE HAWTHORNE SCHOOL DISTRICT

By
Eugene M. Krank, President

Attest:

Helen E. Morgan, Secretary

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STATE OF CALIFORNIA )
)ss
LOS ANGELES COUNTY )

I, Helen E. Morgan, do hereby certify that the foregoing is a true and correct copy of 2017-2018 Resolution No. 14, which was duly adopted by the Board of Trustees of Hawthorne School District at the meeting thereof held on the 21st day of February, 2018, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

By
Helen E. Morgan, Secretary

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