Commentary on Measure G

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 G Question

EXHIBIT B

SHORT FORM BOND MEASURE

"To repair or replace aging schools with safe, modernized facilities, improve student safety and security, rehabilitate deteriorated roofs, plumbing and electrical systems, upgrade technology, acquire, construct, repair, and equip schools, and provide access to facilities needed for success, shall Arvin Union School District issue $15,000,000 in bonds at legal rates, levying on average $900,000 annually while bonds are outstanding at 3 cents per $100 of assessed value, with independent citizens' oversight and all money dedicated to Arvin schools?"

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Full Text of Measure G

EXHIBIT A

FULL TEXT BALLOT PROPOSITION
OF THE ARVlN UNION SCHOOL DISTRICT
BOND MEASURE ELECTION FOR NOVEMBER 6, 2018

"To repair or replace aging schools with safe, modernized facilities, improve student safety and security, rehabilitate deteriorated roofs, plumbing and electrical systems, upgrade technology, acquire, construct, repair, and equip schools, and provide access to facilities needed for success, shall Arvin Union School District issue $15,000,000 in bonds at legal rates, averaging $900,000 annually while bonds are outstanding at 3 cents per $100 assessed value, with independent citizens' oversight and all money dedicated to Arvin schools?"

PROJECT LIST

The Board of Trustees of the Arvin Union School District certifies that it has evaluated the District's urgent and critical school needs, including school and student safety issues, enrollment trends, class size reduction, overcrowding, energy efficiency and computer technology, seismic safety requirements, and aging, outdated or deteriorating school buildings in developing the scope of projects to be funded. The Board of Trustees will prioritize the key health and safety and sustainability needs so that the most critical school site needs are addressed. The District conducted an evaluation at all school sites and received public input in deve1oping the scope of school projects to be funded. The exact size, configuration and location of each project will be determined by the Board of Trustees based on the needs of the District. In approving this Project List, the Board of Trustees determines that the District should:

1. (i) Upgrade classrooms and other facilities to support the core academics of math, science, reading and writing.
2. (ii) Qualify for millions of dollars of State matching funds,
3. (iv) Purchase school facilities the District is currently leasing,
4. (iii) Adhere to specific FISCAL ACCOUNTABILITY safeguards such as these:
1. (a) Sacramento will be prohibited from taking any of the funds raised.
2. (b) All expenditures will be subject to annual independent financial and performance audits.
3. (c) No funds will be used for administrators' salaries and pensions.
4. (d) All funds will be subject to local control and provide improvements at our schools.

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5. (e) An independent citizens' oversight committee will be appointed to ensure that all funds are spent only as authorized.

The Project List includes the following types of projects:

Modernization/Classroom Upgrade Projects

• 0 Install energy-efficient systems, including heating, ventilation and cooling systems for cost savings.
• 0 Replace existing window systems with energy-efficient systems.
• 0 Replace older ceilings and lighting systems with building code-compliant, energy-efficient systems.
• 0 Paint, re-floor and improve ceilings, doors and hardware existing classrooms.
• 0 Upgrade facilities to comply with Americans with Disability Act (ADA) requirements and current building codes.

Replacing Portables with Permanent Facilities

• 0 Replace existing portables nearing the end of their useful lives with permanent facilities.

Technology and Infrastructure Improvements

• 0 Make infrastructure improvements at facilities to increase campus connectivity to support educational programs and permit District students to achieve competence in the use of computers and better access to the internet.

Furnishings and Equipment

• 0 Furnish and equip classrooms, science labs and multipurpose rooms and facilities, with a focus on the acquisition of desks, tables, chairs and shelving that can be reconfigured for multiple classroom uses.

Collaboration Spaces

• 0 Construct or reconfigure spaces adjacent to classrooms that can be used for break out activities, small group assignments, tutoring and team teaching.

Fitness and Indoor Play Areas/Locker Rooms

• 0 At Haven Middle School, create, furnish and equip indoor fitness space supporting physical education, which can be used for gatherings during inclement weather and on days with unhealthy air quality.

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• 0 At Haven Middle School, upgrade and modernize all locker room facilities.

Playfield Improvements

• 0 Upgrade playfields, hard courts, tracks, fitness stations and equipment storage facilities at schools.
• 0 Add shade structures at play areas.
• 0 Upgrade and replace playground equipment to meet current safety standards.

Food Service Upgrades/Expansion and Covered Dining

• 0 Modernize and improve the District's multipurpose rooms and kitchen facilities to accommodate students during meal and snack times.
• 0 Add shade structures for students to take outdoor meals and snacks.

Library/Media Center Upgrades

• 0 Update the Library/Media Center for student accessibility.
• 0 Add technology upgrades to Library/Media Center to aid in student access to technology.

Student Services Facilities

• 0 Create spaces to provide services to students and parents, including a parent center, a community-based health clinic and spaces for professional development and staff meetings.

Parking, Drop-Off Safety Improvements

• 0 Improve driveways, turnouts and access points to provide safer student drop-off.
• 0 Build or improve parking lots to provide sufficient capacity for busses and private vehicles.
• 0 Add pedestrian walkways to improve traffic flow around schools.

Security and Classroom Buildings Systems

• 0 Install new security systems, such as security (surveillance) cameras, outdoor lighting, perimeter fencing, gates and classroom door locks and related electrical systems.
• 0 Upgrade emergency communication systems.
• 0 Upgrade fire alarm systems to automatic systems, repair and replace fire safety equipment, add sprinklers and fire safety doors.

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• 0 Upgrades to schools in order to meet handicap accessibility requirements.
• 0 Replace/upgrade existing signage, bells and clocks.

Water Filtration and Plumbing Systems

• 0 Undertake plumbing and site utility upgrades in order to address poor water quality in the area and install water filtration systems where necessary.

Outdoor Learning, Hardscapes and Landscaping

• 0 Improve exterior spaces at schools to permit their use for outdoor learning;
• 0 Landscape exteriors to minimize water use and increase flexibility in outdoor learning.
• 0 Furnish outdoor learning spaces, as appropriate.

Listed building, repair and rehabilitation projects and upgrades will be completed as needed. Each project is assumed to include its share of furniture, equipment, architectural, engineering, and similar planning costs, program/project management, staff training expenses and a customary contingency for unforeseen design and construction. In addition to the listed repair and construction projects stated above, the Project List also includes the acquisition of a variety of instructional, maintenance and operational equipment, the construction of new classrooms and other facilities, if necessary, to serve students and reduce class sizes, as well as upgrading schools to provide competitive 21St century learning and to prepare students for high school, college, and careers and improving student access to instruction in science, technology, engineering and math. It also includes the acquisition of land, repairs to administrative support spaces, the payment of the costs of preparation of all facility planning, facility assessment reviews, facility master plan updates, environmental studies (including environmental investigation, remediation and monitoring) and construction documentation, and temporary housing of dislocated District activities caused by bond projects. The upgrading of technology infrastructure includes, but is not limited to, computers, LCD projectors, portable interface devices, servers, switches, routers, modules, sound projection, card access systems, laser printers, digital white boards, document projectors, upgraded voice-over IP, call manager and network security/firewall, and other miscellaneous equipment and software]

The District may acquire real property for school facilities (including the acquisition of leases of real property or leasing of such property), including the purchase of leased facilities and the refinancing of outstanding lease obligations of the District. The bonds may be used to fund design, engineering and program management costs, as well as to make lease payments for leases, or to purchase authorized leased facilities. The bonds may also be used to fund the cost of issuing the bonds, certain allowable election costs, and the cost of obtaining and disseminating information, as authorized under State law.

In addition to the projects listed above, the repair and renovation of each of the existing District facilities may include, but not be limited to, some or all of the following: renovation of student and staff restrooms; repair and replacement of heating, air conditioning and ventilation systems; upgrade of facilities for energy efficiency and to reduce fire risks; repair and replacement A-4
4830665145825 12 of worn-out and leaky roofs, windows, walls, doors and drinking fountains; demolition of unsafe facilities; installation and upgrades of wiring and electrical systems to safely accommodate computers, technology and other electrical devices and needs; repairing and replacing fire alarms, emergency communications and security systems; resurfacing or replacing of hard courts, turf and irrigation systems and campus landscaping; building new and/or renovating existing physical education facilities; upgrading or replacing inadequate libraries, and administrative spaces; upgrading locker rooms; installing artificial turf and bleachers; improving sanitation and recycling; expanding parking; installing interior and exterior painting and floor covering; installing covered walkways; demolition; and construction of various forms of storage and support spaces; replacing water and sewer lines and other plumbing systems; and replacing outdated security 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. In the absence of State matching funds, which the District will aggressively pursue to reduce the District's share of the costs of the projects, the District may undertake fewer than all of the projects listed above. Some projects may be undertaken as joint use projects in cooperation with other local public or non-profit agencies. Possible joint-use projects could include, but may not be limited to, any of the following: physical education facilities, daycare centers, classrooms, facilities for business development and career technology centers.

The final cost of each project will be determined as plans are finalized, construction bids are awarded and projects are completed. Based on the final costs of each project, certain 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 of Trustees determines that such an approach would be more cost-effective in creating more enhanced and operationally efficient campuses. Necessary site preparation/restoration may occur in connection with new construction, renovation or remodeling, or installation or removal of relocatable classrooms, including ingress and egress, removing, replacing or installing irrigation, storm drain, and utility lines, trees and landscaping, relocating fire access roads, and acquiring any necessary easements, licenses, or rights of way to the property. Proceeds of the bonds may be used to pay or reimburse the District for the costs of District staff when performing work on or necessary and incidental to bond projects. Bond proceeds shall only be expended for the specific purposes identified herein

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

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 DISTRICT FACILITIES, INCLUDING THE FURNISHING AND EQUIPPING OF FACILITIES, AND NOT FOR ANY OTHER PURPOSE, INCLUDING PENSIONS, TEACHER AND SCHOOL ADMINISTRATOR SALARIES AND OTHER OPERATING EXPENSES.

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FISCAL ACCOUNTABILITY. THE EXPENDITURE OF BOND MONEY ON THESE PROJECTS IS SUBJECT TO STRINGENT FINANCIAL ACCOUNTABILITY REQUIREMENTS. BY LAW, PERFORMANCE AND FINANCIAL AUDITS WILL BE PERFORMED ANNUALLY, AND ALL BOND EXPENDITURES WILL BE MONITORED BY AN INDEPENDENT CITIZENS' OVERSIGHT COMMITTEE (EDUCATION CODE SECTION 15278 ET SEQ.) TO ENSURE THAT FUNDS ARE SPENT AS PROMISED AND SPECIFIED. THE CITIZENS' OVERSIGHT COMMITTEE MUST INCLUDE, AMONG OTHERS, REPRESENTATIVES 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.

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Measure G Tax Rate Statement

EXHIBIT C

TAX RATE STATEMENT CONCERNING MEASURE __

TAX RATE STATEMENT
REGARDING PROPOSED
$15,000,000
ARVIN UNION SCHOOL DISTRICT
GENERAL OBLIGATION BONDS

An election will be held in Arvin Union School District (the "District") on November 6, 2018 for the purpose of submitting to the electors of the District the question of issuing bonds of the District in the principal amount of $15,000,000. If such bonds are authorized and sold, the principal thereof and interest thereon will be payable from the proceeds of taxes levied on the taxable property in the District. The following information regarding tax rates is given to comply with Section 9401 of the California Elections Code. This 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 assessed valuations of taxable property in the District, and assuming the entire debt service on the bonds will be paid through property taxation:

1. 1. The best estimate from official sources of the average annual tax rate that would be required to be levied to fund the bond issue over the entire duration of the bond debt service, based on estimated assessed valuations available at the time of the filing of this statement, or on a projection based on experience within the District or other demonstrable factors, is $0.03 per $100 ($30.00 per $100,000) of assessed valuation of all property to be taxed. The final year in which the tax is anticipated to be collected is 2046-47.
2. 2. The best estimate from official sources of the highest tax rate that would be required to be levied to fund the bond issue, and an estimate of the year in which that rate will apply, based on estimated assessed valuations available at the time of the filing of this statement, or on a projection based on experience within the District or other demonstrable factors, is $0.03 per $100 ($30.00 per $100,000) of assessed valuation of all property to be taxed and the year is 2019-20.
3. 3. The best estimate from official sources of the total debt service, including principal of and interest on the bonds, that would be required to be paid if all of the bonds are issued and sold under the authorization, is $28,800,000.

Attention of voters is directed to the fact that the foregoing information is based upon projections and estimates. The actual timing of sales of the bonds and the amount to be sold at any time will be governed by the needs of the District and other factors. The actual interest rates at which the bonds will be sold, which will not exceed the maximum permitted by law, will depend upon the bond market at the time of sale. The actual assessed valuations in future years will depend upon the value of property within the District as determined in the assessment and the equalization C-1
4830-5651-1582.5 16 process. Therefore, the actual tax rates and the years in which those tax rates will be applicable may vary from those presently estimated and stated above.

Superintendent
Arvin Union School District

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Measure G Agenda Description

Agenda of July 17, 2018 (complete item)

ARVIN UNION SCHOOL DISTRICT

AGENDA

Board of Education – Regular Meeting

July 17, 2018 6:00 p.m.

9. BUSINESS ADMINISTRATION

9.4 Consider approval of Resolution #2:2018/2019 – Ordering an election to authorize the issuance of general obligation bonds, establishing specifications of the election order, and requesting consolidation with other elections occurring on November 6, 2018.

Motion _______Second _______ Vote: Yes _______ No _______

9.7 Consider approval of the Engagement Letter for the Arvin Union School District General Obligation Bonds Audit by the firm Linger, Peterson, Shrum & Company, Certified Public Accountants, for the period ending June 30, 2018.

Motion _______Second _______ Vote: Yes _______ No _______

Measure G Resolution

ARVIN UNION SCHOOL DISTRICT

RESOLUTION #2:2018/2019

RESOLUTION OF THE BOARD OF TRUSTEES OF
ARVIN UNION SCHOOL DISTRICT
ORDERING AN ELECTION TO AUTHORIZE THE
ISSUANCE OF GENERAL OBLIGATION BONDS, ESTABLISHING SPECIFICATIONS
OF THE ELECTION ORDER, AND REQUESTING CONSOLIDATION
WITH OTHER ELECTIONS OCCURRING ON NOVEMBER 6, 2018

WHEREAS, the Arvin Union School District (the "District") wishes to provide additional funding for the improvement, construction, equipping and furnishing of its facilities, to insure that District students have modern, safe and efficient classrooms, laboratories, athletic facilities and that they have access to technology necessary for them to compete for good jobs and higher education; and

WHEREAS, in the judgment of the Board of Trustees of the District (the "Board"), it is advisable to call an election to submit to the electors of the District the question of whether bonds of the District shall be issued and sold for the purpose of funding the construction, reconstruction, rehabilitation and replacement of District facilities, including the furnishing or equipping of District facilities, or the acquisition or lease of real property 'for District facilities and paying costs incident thereto; and

WHEREAS, pursuant to the provisions of Proposition 39, adopted by the voters of the State of California (the "State") onNovember 7, 2000: ("Proposition 39"), comprising Article XIIIA, Section 1, paragraph (b) of the California Constitution ("Article XIIIA"), the District may incur bonded indebtedness upon the vote of fifty-five percent (55%) or more of the qualified electors of the District voting on the proposition; and

WHEREAS, pursuant to California Education Code ("Education Code") Section 15264 et seq. (the "Act"), the Board is specifically authorized, upon approval by two-thirds (2/3) of the members of the Board, to submit to the electorate of the District the question of whether bonds of the District shall be issued and sold for specified purposes pursuant to paragraph (3) of said subdivision (b) of Section 1 of Article XIIIA and subdivision (b) of Section 18 of Article XVI of the California Constitution; and

WHEREAS, the Board desires to make certain findings to be applicable to the within election order and to establish compliance with Proposition 39 and the applicable requirements of the Education Code and the Elections Code of the State (the "Elections Code"), as further specified herein; and

WHEREAS, pursuant to Section 10403 et seq. of the Elections Code, the Board now deems it appropriate and necessary to request consolidation of the election authorized hereby (the "Election") with any and all other elections to be held on November 6, 2018, and to request the 4830-5651-1582.5 4 Registrar of Voters (the "Registrar of Voters") of the County of Kern (the "County") to perform certain election services for the District;

NOW, THEREFORE, THE BOARD OF TRUSTEES OF ARVIN UNION SCHOOL DISTRICT HEREBY RESOLVES, DETERMINES, AND ORDERS AS FOLLOWS:

Section 1. Call for Election. The Board hereby orders an election and submits to the electors of the District the question of whether general obligation bonds of the District shall be issued and sold in one or more series from time to time in the aggregate principal amount not to exceed $15,000,000 for the purpose of raising money for construction, reconstruction, rehabilitation and replacement of District facilities, including the furnishing or equipping of District facilities, or the acquisition or lease of real property for District facilities and paying costs incident thereto, as set forth more fully in a ballot proposition approved pursuant to Section 4 below. The Board has previously obtained reasonable and informed projections of assessed property valuations that take into consideration projections of assessed property valuations made by the County assessor.

Section 2. Order of Election. This Resolution shall stand as the order to the Registrar of Voters to call the Election within the boundaries of the District on November 6, 2018. The Registrar of Voters is hereby requested, pursuant to Section 5322 of the Education Code, to take all steps to call and hold the Election in accordance with law and these specifications.

Section 3. Election Date and Consolidation. The date of the Election shall be November 6, 2018, and the Election shall be held solely within the boundaries of the District. Pursuant to Section 15121 of the Education Code and Part 3 (commencing with Section 10400) of Division 10 of the Elections Code, the Board of Supervisors of the County is requested to order consolidation of the school bond election ordered herein 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.

Section 4. Purpose of Election; Ballot Proposition. The purpose of the Election shall be for the voters of the District to vote on a proposition, a full copy of which is attached hereto as Exhibit A (the "Bond Measure"), containing the question of whether the District shall issue the Bonds for the purposes stated therein, together with the accountability requirements of Article XIIIA and the requirements of Section 15272 of the Act. The Registrar of Voters is hereby requested to reprint Exhibit A hereof in its entirety in the voter information pamphlet to be distributed to voters. As required by Elections Code Section 13247, the abbreviated form of the Bond Measure to appear on the ballot is attached hereto as Exhibit B. The District's Superintendent (or designee) is hereby authorized and directed to make any changes to the text of the proposition or its abbreviated form as required to comply with the intent of this Resolution, the requirements of election officials, and requirements of law.

Section 5. The Bonds. (i) The maturity of any bonds issued pursuant to the Bond Measure and under Chapter 1.5, Part 10, Division 1, Title 1 of the Education Code (commencing with Section 15264), as amended, and Article XIIIA shall not exceed twenty-five (25) years and shall bear or accrete interest at a rate not to exceed the maximum legal interest rate per annum, and (ii) the maturity of any bonds issued pursuant to the Bond Measure and under Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, as amended, applicable provisions of the Education Code and Article XIIIA of the California Constitution shall 2
4830-5651-1582.5 5 not exceed forty (40) years, or, in the case of bonds, the interest on which is compounded, twenty- five (25) years, and shall bear or accrete interest at a rate not to exceed the maximum legal interest rate per annum.

Section 6. Authority for Election. The authority for ordering the Election is contained in the Act, Article XIIIA, Section 1, paragraph (b), subsection (3) of the California Constitution, and Section 53506 et seq. of the California Government Code. The authority for the specification of this election order is contained in Education Code Section 5322.

Section 7. School Facilities Projects. A list of the specific capital projects (the "Projects") to be funded from the proceeds of the bonds is set forth in Exhibit A (the "Project List"). As required by Article XIIIA, the Board hereby certifies that it has evaluated safety, class- size reduction and information technology needs of the District in developing the list of capital projects set forth in Exhibit A. The District understands that the costs of administering the Election, managing construction projects and costs of issuance of the bonds shall be lawful charges against proceeds of sale of the bonds.

Section 8. Covenants of the Board Upon Approval of the Bonds by the Electorate. As required by Article XIIIA and Section 15278 of the Act, if fifty-five percent (55%) or more of the voters of the District voting on the Bond Measure approve the Bond Measure, the Board shall:

1. (a) Use the bond proceeds only for the purposes of construction, reconstruction, rehabilitation, or replacement of District facilities, including the furnishing and equipping of District facilities, or the acquisition or lease of real property for District facilities, as specifically set forth in Exhibit A, and not for any other purpose, including teacher and administrator salaries and other District operating expenses;
2. (b) Conduct an annual, independent performance audit to ensure that the Bond proceeds have been expended only on the projects listed in Exhibit A;
3. (c) Conduct an annual, independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for District capital projects listed in Exhibit A;
4. (d) Establish and appoint members to an independent citizens' oversight committee in accordance with Sections 15278, 15280, and 15282 of the Act; and
5. (e) Limit the amount of bonds issued pursuant to the Bond Measure so that the tax rate on taxable property located within the District required to repay such bonds will not, based on the District's reasonable expectations, exceed $30 per $100,000 of assessed value.

Section 9. Delivery of this Resolution. The Clerk of this Board is hereby authorized and directed to send or hand-deliver a completed and certified copy of this Resolution to each of the Superintendent of Schools of the County, the Clerk of the Board of Supervisors of the County and the Registrar of Voters no later than August 10, 2018.

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Section 10. Tax Rate Statement; Ballot Arguments. Any one of the Superintendent, the Chief Business Official, the President of the Board, or their designees, is hereby authorized to execute the Tax Rate Statement attached hereto as Exhibit C and any other required documents and to perform all acts necessary to place the Bond Measure on the ballot. The Tax Rate Statement shall be delivered to the Registrar of Voters on or before August 10, 2018. Any member of the Board is hereby authorized to act as an author of or signer to any ballot argument prepared in connection with the Election, including a rebuttal argument.

Section 11. Consolidation of Election; Election Services. Pursuant to Section 5303 of the Education Code and Section 10002 of the Elections Code, the Board of Supervisors is requested to permit the Registrar of Voters, or other appropriate officials of the County, to render all services necessary in connection with the Election including, but not limited to, publication of a Formal Notice of School Bond Election pursuant to Education Code 5363 and related law, the mailing of the sample ballot and tax rate statement (described in Section 9401 of the Elections Code), the opportunity to submit ballot arguments in connection with the Election, the canvassing and certification of the returns of the Election, and other ballot requirements pursuant to Education Code Section 15123, for which services the District agrees to reimburse the County as required by law.

Section 12. Reimbursement of Qualified Project Expenditures. The Board presently intends and reasonably expects issue have tax-exempt obligations (the "Obligations") in the maximum amount of $15,000,000 with respect to the Projects no later than 18 months of (i) the date of the expenditure of moneys for the Projects, if any, made or (ii) the date upon which the component for which expenditures are to be reimbursed is placed in service or abandoned, whichever is later (but in no event more than 3 years after the date the original expenditure of such moneys is paid), and to allocate an amount of the proceeds thereof to reimbursable expenditures in connection with the Projects, as may be qualified under the provisions of Section 1.150-2 of the Treasury Regulations of the Internal Revenue Service (the "Reimbursable Expenditures"). All of the Reimbursable Expenditures covered by this Section were paid not earlier than 60 days prior to the date of this Resolution or constitute preliminary expenditures within the meaning of Section 1.150-2 of the Treasury Regulations. The Board intends to allocate within 30 days after the date of issue of the Obligations, the proceeds therefrom to reimburse the District for the Reimbursable Expenditures. With respect to the proceeds of the Obligations allocated to reimburse the District for prior expenditures, the Board hereby covenants not to employ an abusive device under Treasury Regulation Section 1.148-10, including using within one year of the reimbursement allocation, the funds corresponding to the proceeds of the Obligations in a manner that results in the creation of replacement proceeds, as defined in Treasury Regulation Section 1.148-1, of the Obligations or another issue of tax-exempt obligations.

The above provisions are made solely for the purpose of establishing compliance with the requirements of said Section 1.150-2 of the Treasury Regulations. This provision does not bind the District or the Board to make any expenditure, incur any indebtedness, or proceed with the financing, acquisition or construction of the Projects.

Section 14. Bond Counsel. The Board hereby approves the retention of Nixon Peabody LLP as bond counsel in connection with the Election.

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

PASSED AND ADOPTED by the Board of Trustees of the Arvin Union School District at a regular meeting thereof held on the 17th day of July, 2018, at a location freely accessible to the public and which a quorum of the Board of Trustees was present and acting throughout, by the following vote.

AYES: MEMBERS: Geri Rivera, Toni Pichardo,
Anabel Rubio, Monica Franetovich, Ruth Harris

NOES: MEMBERS: None

ABSENT: MEMBERS: None

ABSTAIN: MEMBERS: None

/s Geri Rivera
President of the Board of Trustees

ATTEST:

/s Toni Pichardo
Clerk of the Board of Trustees

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