Commentary on Measure MM

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 MM Question

B-1-1

EXHIBIT "B-1"

DEL MAR UNION SCHOOL DISTRICT

Bond Measure Statement

"To improve Del Mar neighborhood elementary schools, repair/upgrade/ reconstruct deteriorated school facilities, plumbing, roofs, electrical systems, renovate classrooms supporting science, engineering, math, arts instruction; improve safety/security and technology infrastructure; and construct/equip a new elementary school; shall Del Mar Union School District issue $186 million in bonds at legal rates, raising $9.8 million annually over 30 years at approximately 3 cents per $100 of assessed value, with independent citizens' oversight, mandatory audits, all money for Del Mar K-6 schools?"

Bonds - Yes Bonds – No

(Form to be printed in the Voter Information Guide if California Elections Code Section 13119 is not amended)

B-2-1

EXHIBIT "B-2"

DEL MAR UNION SCHOOL DISTRICT

Bond Measure Statement

"To improve Del Mar neighborhood elementary schools, repair, upgrade, and/ or reconstruct deteriorated school facilities, plumbing, roofs, electrical systems; renovate classrooms supporting science, engineering, math, arts instruction; improve school safety/security and technology infrastructure; and construct and equip a new elementary school; shall Del Mar Union School District issue $186 million in bonds at legal rates, with mandatory annual audits, independent citizen oversight, no money for administrators' salaries or pensions, and all money locally controlled for Del Mar K-6 schools?"

Bonds - Yes Bonds – No

(Form to be printed in the Voter Information Guide if California Elections Code Section 13119 is amended)

Impartial Analysis for Measure MM

COUNTY COUNSEL IMPARTIAL ANALYSIS

This measure was placed on the ballot by the governing board of the Del Mar Union School District ("District"). This measure, if approved by 55% of the votes cast on the measure, will authorize the District to issue and sell $186,000,000 in general obligation bonds. The sale of these bonds by the District is for the purpose of raising money for the District, and represents a debt of the District. In exchange for the money received from bondholders, the District promises to pay the bondholders an amount of interest for a certain period of time, and to repay the bonds on the expiration date.

Voter approval of this measure will also authorize an annual tax to be levied upon the taxable property within the District. The purpose of this tax is to generate sufficient revenue to pay interest on the bonds as it becomes due and to provide a fund for payment of the principal on or before maturity.

Proceeds from the sale of bonds authorized by this measure may be used by the District 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.

The interest rate on any bond, which is established at the time of bond issuance, could not exceed 12% per annum. The final maturity date of any bond could be no later than 40 years after the date the bonds are issued, as determined by the District.

The tax authorized by this measure is consistent with the requirements of the California Constitution. The California Constitution permits property taxes, above the standard 1% limitation, to be levied upon real property to pay the interest and redemption charges on any bonded indebtedness for, among other things, the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, when approved by 55% of the voters if:

N SD 427-132
PR-1362-2
COUNTY COUNSEL IMPARTIAL ANALYSIS (CONTINUED)

1. (1) the proceeds from the sale of the bonds are used only for the purposes specified,
2. (2) the District evaluates safety, class size reduction, and information technology needs to approve a list of specific projects to be funded,
3. (3) the District conducts an annual, independent performance audit to ensure funds have been expended on the specific projects listed, and
4. (4) the District conducts an annual, independent financial audit of bond proceeds.

Additionally, if the bond measure is approved, state law requires the District to establish an independent citizens' oversight committee. The District has made this ballot measure subject to these legal requirements.

Approval of this measure does not guarantee that the specific projects listed by the District will be funded by the sale of the bonds.

A "YES" vote is a vote in favor of authorizing the District to issue and sell $186,000,000 in general obligation bonds.

A "NO" vote is a vote against authorizing the District to issue and sell $186,000,000 in general obligation bonds.

N SD 427-133

Argument in Favor of Measure MM

PR-1362-5

ARGUMENT IN FAVOR OF MEASURE MM

VOTE YES on MM to protect the outstanding quality of education that local children attending neighborhood K-6 schools receive from the Del Mar Union School District.

Our neighborhood elementary schools – Ashley Falls, Carmel Del Mar, Del Mar Heights, Del Mar Hills Academy, Ocean Air, Sage Canyon, Sycamore Ridge, and Torrey Hills – have provided local children with an exceptional education, consistently ranking among the best in the state. However, they are aging, some are overcrowded, and the current state of these facilities is now threatening our local quality of education.

Two schools west of I-5 built in the 1960's have grown dilapidated after constant use over more than half a century. On the east side of the school district, dramatic enrollment increases are causing overcrowding. All schools are aging and ALL need attention. Without Measure MM, DMUSD's outstanding instructional program and reputation for exceptional teaching and learning will suffer.

Measure MM provides a prudent plan to address Del Mar Union School District's most critical facility needs. NO other funding currently exists to properly upgrade our schools.

Measure MM will:

• • Repair/Replace deteriorated school roofs, plumbing, HVAC, lighting, and electrical systems
• • Renovate classrooms for science, technology, engineering, art and math instruction
•  Improve school safety and security
•  Upgrade technology infrastructure to keep pace with 21st century learning
•  Reconstruct Del Mar Heights School and modernize Del Mar Hills Academy, west of I-5
•  Construct and equip a new school in East Pacific Highlands Ranch to relieve overcrowding

Taxpayer protections are REQUIRED. ALL FUNDS STAY LOCAL. NO funds are allowed for administrators' salaries, benefits or pensions. Independent Oversight and mandatory audits ensure proper spending.

Whether or not you have school-age children, protecting the local quality of education is a smart investment. Great schools protect great property values and keep our community strong.

Please join teachers, parents, community leaders, and residents from every neighborhood of our community VOTING YES to ensure safe, modern, premier Del Mar schools for our future.

Please VOTE YES on MM.

YesonMM4DMUSD.org

Argument Against Measure MM

ARGUMENT AGAINST MEASURE MM

No argument against the measure was filed in the office of the Registrar of Voters.

N SD 427-136

Full Text of Measure MM

A-1

EXHIBIT "A"

BOND PROPOSITION OF THE
DEL MAR UNION SCHOOL DISTRICT
(November 6, 2018):

TEXT OF BOND MEASURE

"In order to acquire, construct and reconstruct school facilities, and provide for supporting infrastructure at the existing school site of the Del Mar Union School District, and in so doing increase health, safety, welfare and educational effectiveness of classrooms for students, shall the Del Mar Union School District be authorized to issue Bonds in an amount not to exceed $186,000,000, including the furnishing and equipping of school facilities or the acquisition or lease of real property for schools and school facilities listed in Attachment "1" on file at the District office and herein incorporated, which Bonds shall be issued for a term not to exceed the applicable statutory maximum, at an interest rate below the legal maximum, and which Bonds shall be subject to the following provisions:

1. (A) That proceeds of the Bonds shall be used only for the construction of school facilities and supporting infrastructure, including the furnishing and equipping of school facilities or the acquisition or lease of real property for school facilities pursuant to California Constitution Article XIIIA, Section 1(b)(3) and further that the proceeds of the Bonds shall be used only for the purposes specified in California Constitution Article XIIIA, Section 1(b)(3) (as amended by Proposition 39) and not for any other purpose, including teacher and non-construction related administrator salaries and any other school operating expenses.
2. (B) That a list of the specific school facilities projects to be funded with the proceeds of the Bonds is attached hereto as Attachment "1" and, based upon the adoption of this Resolution, this Governing Board of Trustees hereby certifies that it has evaluated safety, class size reduction and information technology needs in developing the school facilities listed in Attachment "1".
3. (C) That the Governing Board of Trustees of the District shall conduct annual, independent performance audits to insure that the proceeds from the sale of the Bonds have been expended only on the specific projects listed in this bond proposition.
4. (D) That the Governing Board of Trustees of the District shall conduct annual, independent financial audits of the proceeds from the sale of the Bonds until all of those proceeds have been expended for the school facilities projects identified herein.
5. (E) That the Governing Board of Trustees of the District will, pursuant to the provisions of applicable State law, appoint a citizens' oversight committee, and conduct annual independent audits (as referenced above) to assure that the Bond A-2 proceeds are spent only on the school, facilities and classroom improvements, projects and costs identified in Attachment "1" and for no other purposes.

BOND DIRECTIVES REGARDING BONDS:

The Governing Board of Trustees of the District directs as follows with respect to the authorization of the Bonds:

• • The District will make all reasonable efforts to secure State funding for District capital projects if such State funding is available.
• • Bonds issued pursuant to this Bond Measure shall be issued and sold as current interest bonds and/or current interest term bonds and not as Capital Appreciation Bonds or bonds with a compounding interest feature.

TAXPAYER PROTECTIONS: The following taxpayer protections are specifically provided in this Bond Measure and by law:

• • Bond funds shall be used only for the school facilities projects identified herein, and not for any other purpose.
• • Requirements of the California Government Code concerning the use of, and accounting for, the expenditure of bond proceeds shall be complied with as directed by the Governing Board of Trustees of the District.
• • As required by law, an Independent Citizen's Oversight Committee shall oversee expenditures of bond funds, and related matters, and shall report to the Governing Board of Trustees and communicate with the public on such expenditures.
• • As required by law, the School District shall conduct annual financial audits and performance audits (using independent auditors) for all bond funds.
• • Bond Funds shall not be used for teacher or non-construction related administrator salaries or other non-construction related operating expenses."

1-1

ATTACHMENT "1"

LOCAL ELEMENTARY SCHOOLS SAFETY, REPAIR
& MODERNIZATION MEASURE

SCHOOL FACILITIES PROJECT LIST

Proceeds from the general obligation bonds of the Del Mar Union School District ("District") would be used to repair, renovate, upgrade, replace, modernize, and construct school facilities, and fund related facilities costs, including, but not limited to, repair and replacement of lighting and electrical systems, heating, ventilation and air conditioning (HVAC) systems, flooring, roofing, plumbing, renewable energy (including, but not limited to, solar energy/solar generating and/or storage facilities), windows, wall systems, security, communication systems, shade structures, fencing, walkways, parking lots, landscaping, handicap accessibility improvements, conservation measures, network infrastructure, fields, and related projects to meet current health, safety and instructional standards which will improve the overall educational experience for all students in the District.

MASTER PLAN FACILITIES PROJECTS AND OBJECTIVES

The following are master plan facilities projects and objectives to be implemented throughout the District that can be funded by this bond measure:

• ? Install and upgrade Security/Safety systems to meet needs for Student Safety and Campus Security
• ? Redesign and reconstruct Del Mar Heights School
• ? Modernize and upgrade District school facilities at Ashley Falls School, Carmel Del Mar School, Del Mar Hills Academy, Ocean Air School, Sage Canyon School, Sycamore Ridge School, and Torrey Hills School
• ? Design and construct a new elementary school in East Pacific Highlands Ranch
• ? Renovate, upgrade, replace, install, and provide repairs of school site infrastructure (Plumbing, Electrical, HVAC, Communications, and Security Networks)
• ? Ensure safety and structural integrity of buildings for student and employee safety by making seismic and safety upgrades and retrofits
• ? Remove and/or replace portable classrooms with permanent classrooms
• ? Install infrastructure and supporting wiring in order to support broadband access for high-speed data and communications
• ? Relocate technology offices and Main Distribution Frame (MDF)
• ? Upgrade and modernize District schools to provide for compliance with Americans with Disabilities Act (ADA)
• ? Improve energy efficiency to reduce costs and reduce energy consumption (producing reductions in environmental impacts), through the use/installation of energy-efficient facilities including the construction/installation of solar energy facilities
• ? Upgrade Landscape and Irrigation, using recycled water where available
• ? Provide facilities for Storm Water Management

1-2

• ? Provide facilities for Child Nutrition Services and centralized District kitchen
• ? Replace, update and improve access and parking facilities with the goal of reducing traffic congestion in the vicinity of District schools

RENOVATION, MODERNIZATION AND REPAIR OF EXISTING DISTRICT SCHOOLS AND SCHOOL FACILITIES

Ashley Falls School

• ? Modernize, upgrade, renovate, rehabilitate, reconfigure, construct, expand, and equip classrooms, classroom buildings, STEAM+, restrooms, common areas, and school support facilities, including library and multipurpose room/auditorium
• ? Security/Safety – Update/install security systems, access control, surveillance systems, exterior lighting, office reconfiguration, fencing, and fire alarm systems
• ? Repair or replace deteriorated roofing and HVAC systems
• ? Provide new outdoor student dining areas with shade structures
• ? Replace Play Structures to include equipment and increased shade
• ? Remove and or replace portable classrooms with permanent classrooms
• ? Install technology infrastructure and supporting wiring in order to support broadband access for high-speed data and communications
• ? Repair or upgrade play structures/fields for improved student safety
• ? Update interior lighting and lighting controls to improve energy efficiency
• ? Improve landscape, drought tolerant materials, irrigation controls, and recycled water (where and as available)
• ? Provide/install solar energy and/or storage facilities
• ? Provide/install lunch service area and student dining area(s)
• ? Upgrade Main Distribution Frame
• ? Construct/install ADA path of travel and accessibility upgrades

Carmel Del Mar School

• ? Modernize, upgrade, renovate, rehabilitate, reconfigure, construct, expand, and equip classrooms, classroom buildings, STEAM+, restrooms, common areas, and school support facilities, including library and multipurpose room/auditorium
• ? Security/Safety – Update/install security systems, access control, surveillance systems, exterior lighting, office reconfiguration, fencing, and fire alarm systems
• ? Repair or replace deteriorated roofing and HVAC systems
• ? Expand and update the Multi-Use Room for large group instruction
• ? Replace deteriorated sewer line(s)
• ? Install pedestrian ramp from Carmel Park Drive to school site
• ? Remove and or replace portable classrooms with permanent classrooms
• ? Install technology infrastructure and supporting wiring in order to support broadband access for high-speed data and communications
• ? Repair or upgrade play structures/fields for improved student safety
• ? Install/replace shade structures
• ? Update interior lighting and lighting controls to improve energy efficiency

1-3

• ? Improve landscape, drought tolerant materials, irrigation controls, and recycled water (where and as available)
• ? Provide/install solar energy and/or storage facilities
• ? Provide/install lunch service area and student dining area(s)
• ? Construct/install ADA path of travel and accessibility upgrades

Del Mar Heights School

• ? Redesign and reconstruct the campus. This includes construction and/or reconstruction of classrooms, support buildings, campus administration facilities, and other buildings necessary for non-instructional purposes
• ? Security/Safety – Update/install security systems, access control, surveillance systems, exterior lighting, office reconfiguration, fencing, and fire alarm systems
• ? Reconfigure and reconstruct drop off/pick-up areas and parking for improved traffic flow and student safety
• ? Design, construct and install supporting facilities and infrastructure, including, but not limited to, roadways, electrical systems, plumbing, HVAC, parking, hardscape, interior and exterior lighting, and lighting controls
• ? Make necessary site improvements including grading, infrastructure, and roadway access
• ? Install solar energy and/or storage facilities
• ? Install/replace shade structures
• ? Repair or upgrade play structures/fields for improved student safety
• ? Interior lighting and lighting controls
• ? Improve landscape, drought tolerant materials, irrigation controls, and recycled water (where and as available)
• ? Provide/install lunch service area
• ? Provide/install covered student dining area

Del Mar Hills Academy

• ? Modernize, upgrade, renovate, rehabilitate, reconfigure, construct, expand, and equip classrooms, classroom buildings, STEAM+, restrooms, common areas, and school support facilities, including library and multipurpose room/auditorium
• ? Security/Safety – Update/install security systems, access control, surveillance systems, exterior lighting, office reconfiguration, fencing, and fire alarm systems
• ? Increase natural light in all learning spaces and common areas
• ? Improve campus layout and classroom configuration
• ? Add restrooms in proximity to Kindergarten classrooms
• ? Increase parking and improve ingress/egress
• ? Improve drop-off/pick-up area and parking for improved traffic flow and student safety
• ? Repair or replace deteriorated roofing and HVAC systems
• ? Remove and or replace portable classrooms with permanent classrooms
• ? Install technology infrastructure and supporting wiring in order to support broadband access for high-speed data and communications
• ? Repair or upgrade play structures/fields for improved student safety

1-4

• ? Install/replace shade structures
• ? Update interior lighting and lighting controls to improve energy efficiency
• ? Improve landscape, drought tolerant materials, irrigation controls, and recycled water (where and as available)
• ? Provide/install solar energy and/or storage facilities
• ? Construct facilities for Child Nutrition Services and centralized District kitchen
• ? Provide/install lunch service area and student dining area(s)
• ? Construct/install ADA path of travel and accessibility upgrades

Ocean Air School

• ? Modernize, upgrade, renovate, rehabilitate, reconfigure, construct, expand, and equip classrooms, classroom buildings, STEAM+, restrooms, common areas, and school support facilities, including library and multipurpose room/auditorium
• ? Security/Safety – Update/install security systems, access control, surveillance systems, exterior lighting, office reconfiguration, fencing, and fire alarm systems
• ? Modify ingress and egress for student drop off and pick up to improve pedestrian safety
• ? Repair or replace deteriorated roofing, HVAC systems, and carpeting
• ? Install or replace shade structures to include outdoor student dining areas
• ? Install technology infrastructure and supporting wiring in order to support broadband access for high-speed data and communications
• ? Repair or upgrade play structures/fields for improved student safety
• ? Update interior lighting and lighting controls to improve energy efficiency
• ? Improve landscape, drought tolerant materials, irrigation controls, and recycled water (where and as available)
• ? Provide/install solar energy and/or storage facilities
• ? Provide/install lunch service area and student dining area(s)
• ? Construct/install ADA path of travel and accessibility upgrades

Sage Canyon School

• ? Modernize, upgrade, renovate, rehabilitate, reconfigure, construct, expand, and equip classrooms, classroom buildings, STEAM+, restrooms, common areas, and school support facilities, including library and multipurpose room/auditorium
• ? Security/Safety – Update/install security systems, access control, surveillance systems, exterior lighting, office reconfiguration, fencing, and fire alarm systems
• ? Repair or replace deteriorated roofing and HVAC systems
• ? Install or replace shade structures to include outdoor student dining areas
• ? Remove and or replace portable classrooms with permanent classrooms
• ? Install technology infrastructure and supporting wiring in order to support broadband access for high-speed data and communications
• ? Repair or upgrade play structures/fields for improved student safety
• ? Update interior lighting and lighting controls to improve energy efficiency
• ? Improve landscape, drought tolerant materials, irrigation controls, and recycled water (where and as available)
• ? Provide/install solar energy and/or storage facilities

1-5

• ? Provide/install lunch service area and student dining area(s)
• ? Construct/install ADA path of travel and accessibility upgrades

Sycamore Ridge School

• ? Modernize, upgrade, renovate, rehabilitate, reconfigure, construct, expand, and equip classrooms, classroom buildings, STEAM+, restrooms, common areas, and school support facilities, including library and multipurpose room/auditorium
• ? Security/Safety – Update/install security systems, access control, surveillance systems, exterior lighting, office reconfiguration, fencing, and fire alarm systems
• ? Repair or replace deteriorated roofing and HVAC systems
• ? Expand and update the Multi-Use Room for large group instruction
• ? Install technology infrastructure and supporting wiring in order to support broadband access for high-speed data and communications
• ? Repair or upgrade play structures/fields for improved student safety
• ? Install/replace shade structures
• ? Update interior lighting and lighting controls to improve energy efficiency
• ? Improve landscape, drought tolerant materials, irrigation controls, and recycled water (where and as available)
• ? Provide/install solar energy and/or storage facilities
• ? Provide/install lunch service area and student dining area(s)
• ? Construct/install ADA path of travel and accessibility upgrades

Torrey Hills School

• ? Modernize, upgrade, renovate, rehabilitate, reconfigure, construct, expand, and equip classrooms, classroom buildings, STEAM+, restrooms, common areas, and school support facilities, including library and multipurpose room/auditorium
• ? Security/Safety – Update/install security systems, access control, surveillance systems, exterior lighting, office reconfiguration, fencing, and fire alarm systems
• ? Improve Science Lab
• ? Improve layout and configuration for Technology Lab and Library
• ? Repair or replace deteriorated roofing and HVAC systems
• ? Remove and or replace portable classrooms with permanent classrooms
• ? Install technology infrastructure and supporting wiring in order to support broadband access for high-speed data and communications
• ? Repair or upgrade play structures/fields for improved student safety
• ? Install/replace shade structures
• ? Update interior lighting and lighting controls to improve energy efficiency
• ? Improve landscape, drought tolerant materials, irrigation controls, and recycled water (where and as available)
• ? Provide/install solar energy and/or storage facilities
• ? Provide/install lunch service area and student dining area(s)
• ? Construct/install ADA path of travel and accessibility upgrades

1-6

NEW ELEMENTARY SCHOOL IN EAST PACIFIC HIGHLANDS RANCH

• ? Purchase land, design, and construct a comprehensive elementary school campus. This includes classrooms, support buildings, campus administration facilities, and other buildings necessary for non-instructional purposes
• ? Security/Safety – Provide/install security systems, access control, surveillance systems, exterior lighting, fencing, and fire alarm systems
• ? Make necessary site improvements including site preparation, grading, supporting infrastructure, roads, and roadway access
• ? Design and construct fields, landscaping, parking, and drop off/pick-up
• ? Design, construct and install supporting facilities and infrastructure, including, but not limited to, roadways, electrical systems, plumbing, HVAC, parking, hardscape, interior and exterior lighting, and lighting controls
• ? Provide/install solar energy and/or storage facilities
• ? Provide/install Playground facilities and equipment
• ? Provide/install landscaping, including, but not limited to, drought tolerant materials, irrigation controls and use of recycled water (where and as available)
• ? Provide/install lunch service area and student dining area(s)
• ? Construct facilities for Child Nutrition Services and centralized District kitchen
• ? Relocate technology offices and/or Main Distribution Frame

ALL DISTRICT SCHOOL SITES WHERE RENOVATION, MAJOR REPAIRS AND/OR NEW CONSTRUCTION TO BE UNDERTAKEN:

• ? Remove and mitigate hazardous materials (e.g. asbestos, lead, PCB, mold, mildew, etc.) where necessary.
• ? Improve contingencies as required to comply with existing building codes and state/federal requirements, including access requirements of the ADA.
• ? Provide adequate furniture and equipment for all classrooms, and spaces to be newly constructed or reconstructed.
• ? Acquisition of any of the facilities on this School Facilities Project List through temporary lease or lease-purchase arrangements or execute purchase option under lease for any of these authorized facilities.
• ? Necessary site preparation/restoration in connection with renovation or remodeling, including ingress and egress, removing, replacing, or installing irrigation, utility lines, trees and landscaping, relocating fire access roads, and acquiring any necessary easements, licenses, or rights of ways to property.
• ? If the Governing Board of Trustees determines that replacement is more economical than rehabilitation, improvement, or renovation of existing classrooms/school facilities, in those particular cases replacement/new construction will be explored/pursued.
• ? Provide temporary (interim) classrooms and other school facilities as needed to accommodate students and school functions displaced during construction, including, but not limited to, relocation costs.
• ? The costs to demolish/remove facilities when no longer needed and the costs to restore site and utility systems after removal.
• ? Modernization upgrade or replacement of structures includes permanent, portable, or modular structures.

1-7

Project Costs for Furnishings and Equipment

Project Costs for furnishings and equipment for some or all of the within-identified District campuses may include, but are not limited to, some or all of the following: security, safety and communication systems and equipment, storage and casework, school furniture; window, wall, and durable floor coverings (including tiles and carpeting); media recording, distribution and presentation equipment, including, but not limited to, audio systems, kitchen equipment, improvements and furnishings, fire alarm, security; science laboratory equipment; and/or other infrastructure equipment and systems.

Project costs for the above-referenced projects may include installation costs, engineering and design costs, project management/construction management costs, warranty costs, master facilities planning, state or local costs or expenses involving design, planning, site and facilities development costs and charges, environmental review(s) and proceedings, necessary supporting infrastructure costs, relocation costs and expenses, necessary contingency plans and related costs construction and completion of the aforementioned facilities projects, audit costs, direct legal costs and related costs. Project costs may also include the payment or prepayment of existing or future lease payments and/or interim financing costs for lease of authorized facilities, property or buildings, prepayment of lease obligations for facilities purposes (including temporary classroom facilities) and payment of costs and expenses for interim financing of authorized facilities (including, but not limited to, financing delivery costs). Proceeds of the bonds may be used to pay or reimburse the District for the cost of District staff when performing work on, or necessary and incidental to, bond projects. Allowable project costs also include: costs of issuing the bonds or other securities (as authorized under California law), informational distribution costs and election costs authorized under State law.

The scope and nature of any of the specific projects described above may be altered by the District as required by unforeseen conditions that may arise during the course of design and accomplishment of the projects. In the event that a modernization or renovation project is more economical for the District to be undertaken as new construction, this bond measure authorizes land acquisition, relocation and construction and/or reconstruction, and all costs relating thereto, for said reason or, alternatively, based on other considerations deemed in the best interest of the District by the Governing Board of Trustees. In addition, this measure authorizes the acquisition of real property, including necessary rights of ways or other real property interests, required to expand District facilities, to provide access to school or other District facilities, or to provide additional school or related facilities.

This School Facilities Project List describes the specific facilities and capital projects the District may finance with proceeds of the Bonds. In addition, authorized projects include reimbursements for paid project costs and paying and/or prepaying interim or previously obtained financing for the types of projects included on the project list, such as bond anticipation notes, and including payment and prepayment of lease payments relating to projects and/or equipment previously financed. Listed projects will be completed as needed at a particular school site according to Board-established priorities, and the order in which such projects appear on this School Facilities Project List is not an indication of priority for funding or completion. The final cost of each project will be determined as plans are finalized, construction bids are awarded, and projects are completed. Certain construction funds expected from non-bond sources, including State grant funds for eligible projects, have not yet been 1-8 secured. Until all project costs and funding sources are known, the Governing Board of Trustees cannot determine the amount of bond proceeds available to be allocated for each project, nor guarantee that the bonds will provide sufficient funds to allow completion of all listed projects. Completion of some projects may be subject to further government approvals by State officials and boards, to local environmental review, and to input from the public. For these reasons, inclusion of a project on the Bond Project List is not a guarantee that any specific project listed herein will be funded, completed or completed by a specific date.

In preparing the foregoing list, the Board of Trustees of the Del Mar Union School District has evaluated safety, class size and information technology needs.

The District will also aggressively pursue funds from the State of California to complete facilities projects.

No Administrator Salaries. Proceeds from the sale of Bonds authorized by this measure shall be used only for the construction, acquisition, repair, renovation, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the lease of real property for school facilities as identified herein, and not for any other purpose, including teacher and non-construction related administrator salaries and other operating expenses.

Measure MM Tax Rate Statement

PR-1362-3

TAX RATE STATEMENT

As shown on the enclosed official ballot, an election is being held in the Del Mar Union School District ("District") on November 6, 2018, for the purpose of submitting to the registered voters within the District the question of whether the District shall issue and sell bonds in an amount not to exceed $186,000,000 for the purpose of providing funds for the specified school facilities and school projects as set forth in the resolution of the District calling such bond election. This measure will authorize a tax sufficient for payment of interest on, and redemption of, the bonds. The bonds shall bear interest at a rate, or rates, to be established at such time as the bonds are sold, in one or more series, at fixed or variable interest rates not to exceed the maximum applicable statutory rate for such bonds. If such bonds are authorized and sold, the principal thereof and the interest thereon are a general obligation of the District, payable from the proceeds of ad valorem taxes on taxable real property located within the District.

The following information is submitted in compliance with California Elections Code Sections 9401 through 9404 based on estimates of assessed valuations available at the time of filing of this statement:

1. (a) The best estimate from official sources of the average annual tax rate that would be required to be levied to fund the bond issue during the entire duration of the bond debt service (repayment of the bonds) based on estimated assessed valuations available at the time of filing of this statement, which is a projection based on experience within the same jurisdiction or other demonstrable factors, is $0.28 per $100 ($28 per $100,000) of assessed valuation. The final fiscal year in which such tax is anticipated to be collected is 2049-2050.
2. (b) The best estimate from official sources of the highest tax rate which would be required to be levied to fund such bond issue(s) based on estimated assessed valuations available at the time of filing of this statement, which is a projection based on experience within the same jurisdiction or other demonstrable factors, is $0.2925 per $100 ($29.25 per $100,000) of assessed valuation. It is estimated that this tax rate would apply in the 2028-2029 tax/fiscal year.
3. (c) The best estimate of the total debt service, including principal and interest, that would be required to be repaid if all the bonds are issued and sold is $334,800,000.

Voters should note that these estimated tax rates are based on the assessed value of taxable property within the District as shown on the official rolls of San Diego County, not on the property's market value. In addition, taxpayers eligible for a property tax exemption, such as the homeowner's exemption, will be taxed at a lower effective rate than described above. Actual future assessed valuation will depend upon the amount and value of taxable property within the District as determined by the San Diego County Assessor in the annual assessment and the equalization process. Property owners should consult their own property tax bills and/or tax advisors to determine their property's assessed value and any applicable tax exemptions.

Attention of all voters is directed to the fact that these estimates are based on assumptions and projections derived from information currently available and obtained from official sources. The actual tax rates and the years in which they will apply may vary depending on the timing of any bond sales, the amount of bonds sold, the maturities of the bonds issued and sold, market interest rates at the time of each sale of bonds and actual assessed valuations over the term of repayment of the bonds.

N SD 427-134
PR-1362-4
TAX RATE STATEMENT (CONTINUED)

The figures provided above are estimations based on the factors noted herein and are not maximum limitations. The timing of the bond sales and the amount of bonds sold at any given time will be governed by the needs of the District. The actual interest rates at which bonds will be sold will depend on the bond market at the time of each such sale. Actual future assessed valuation will depend upon the amount and value of taxable property within the District as determined by the San Diego County Assessor in the annual assessment and the equalization process.

Dated: August 6, 2018 /s/ Holly McClurg, Ph.D., Superintendent
Del Mar Union School District

N SD 427-135

Measure MM Agenda Description

Agenda of July 25, 2018 (complete item)

Agenda Item Details

Motion & Voting

Agenda of August 6, 2018 (complete item)

Agenda Item Details

Motion & Voting

Measure MM Resolution

RESOLUTION NO. 2018-20

RESOLUTION OF THE GOVERNING BOARD OF TRUSTEES OF THE
DEL MAR UNION SCHOOL DISTRICT ORDERING A SCHOOL BOND
ELECTION, ESTABLISHING SPECIFICATIONS FOR AN ELECTION
ORDER, REQUESTING CONSOLIDATION WITH OTHER ELECTIONS
OCCURRING ON NOVEMBER 6, 2018, AND TAKING RELATED
ACTIONS

WHEREAS, the Del Mar Union School District ("District"), a California public school district organized and operating pursuant to the laws of the State of California ("State"), desires to construct and acquire school facilities, make improvements to certain existing facilities, rehabilitate, modernize or replace certain existing school facilities, or the acquisition or lease of real property for school facilities purposes, which may include the furnishing and equipping of school facilities, all as further described herein, for school facilities to serve the students within the District as further described in Exhibit "A" attached hereto and incorporated herein by this reference ("School Facilities"); and

WHEREAS, Section 1(a) of Article XIIIA of the California Constitution enacted in 1978, subject to exceptions, limits ad valorem taxes on real property to one percent (1%) of the full cash value of such property; and

WHEREAS, Proposition 46, approved by the voters of the State in 1986 added a provision to Section 1(b) of Article XIIIA to exempt from such one percent (1%) of full cash value limitation, those ad valorem taxes used to pay debt service of any bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds (2/3) of the votes cast by the voters voting on the proposition for bonded indebtedness; and

WHEREAS, the Smaller Classes, Safer Schools and Financial Accountability Act ("Proposition 39") was adopted by the voters within the State in 2000, added Section 1(b)(3) of Article XIIIA of the California Constitution and amended Section 18(b) of Article XVI of the California Constitution, to allow a public school district, upon approval by a two-thirds vote of its Governing Board of Trustees, to incur bonded indebtedness approved in an election conducted after such date for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities or the acquisition or lease of facilities or real property for school facilities, in consideration of safety, class size reduction and information technology needs, to be approved by fifty-five percent (55%) of the voters of such school district provided that certain findings, determinations, certifications and requirements are applicable to such a bond election and the proposition for such bonded indebtedness includes specified accountability requirements all as set forth in Proposition 39, as adopted, and related State legislation are satisfied ("Proposition 39 Accountability Requirements"); and

WHEREAS, the Governing Board of Trustees of the District ("Board") has reviewed and considered various information, factors and data concerning the status, condition and facilities needs of each of the District's schools and school sites, including, but not limited to, the District's 2018 Facilities Master Plan and reports, estimates of the costs of school facilities in 2 order to meet the educational needs of the District's current and future students, availability of other funding sources, community input and related matters and information; and

WHEREAS, the District's 2018 Facilities Master Plan approved July 25, 2018, which provides for the operation of nine schools serving the District, provided guidance for the development of the School Facilities Project List (Attachment "1" to Exhibit "A"); and

WHEREAS, under existing State law, November 6, 2018, is a Statewide General Election Date; and

WHEREAS, in the judgment of the Board it is advisable to order the San Diego County Registrar of Voters ("County Registrar") to conduct an election within the District on the question of whether bonds ("Bonds") shall be issued and sold for the purposes described herein and subject to the Proposition 39 Accountability Requirements; and

WHEREAS, under Section 10403 et seq. of the California Elections Code ("Elections Code"), it is appropriate for the Board to request consolidation of such election with any and all other elections to be held within the boundaries of the District on Tuesday, November 6, 2018.

NOW, THEREFORE, THE GOVERNING BOARD OF TRUSTEES OF THE DEL MAR UNION SCHOOL DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The foregoing recitals are true and correct and are incorporated herein by this reference.

Section 2. The Board, pursuant to California Education Code ("Education Code") Sections 15264 et seq., Section 1(b)(3) of Article XIIIA of the California Constitution, Section 18(b) of Article XVI of the California Constitution and, to the extent applicable, Education Code Sections 15100 et seq., hereby orders and calls an election to submit to the electors of the District the question of whether Bonds will be issued and sold for the purpose of raising money to finance the School Facilities listed in Exhibit "A" ("Election"), which is also on file at the District office, and for paying costs incident thereto, which Election will occur on a Statewide General Election Date. The amount of the Bond authorization shall be $186,000,000 as further set forth in the exhibits hereto.

Section 3. The date of the Election shall be November 6, 2018.

Section 4. The purpose of the Election shall be for the voters in the District to vote on a proposition as set forth in Section 11 hereof ("Proposition" or "Bond Measure"), containing the question of whether the District shall issue the Bonds for the purposes stated therein, including the Proposition 39 Accountability Requirements, and subject to the terms and conditions set forth in this Resolution.

Section 5. That the authority for ordering the Election is contained in Education Code Sections 15264 et seq., Section 1(b)(3) of Article XIIIA of the California Constitution and Section 18(b) of Article XVI of the California Constitution as amended pursuant to the provisions of Proposition 39 and, to the extent applicable, Education Code Sections 15100 et seq.

Section 6. This Resolution constitutes the order of the District to the County Registrar to call and conduct the Election ("Election Order") within the boundaries of the District on November 6, 2018, which is a Statewide General Election Date, subject to the terms, provisions and requirements set forth herein.

Section 7. The authority for the specification of the Election Order is contained in Education Code Section 5322.

Section 8. The Clerk of the Board is directed to send, or cause to be sent, a certified copy of this Resolution to the County Registrar and a certified copy of this Resolution to the San Diego County Clerk of the Board of Supervisors ("County Clerk"). The Clerk of the Board shall also transmit, or cause to be transmitted, a copy of this Resolution to the San Diego County Superintendent of Schools.

Section 9. Pursuant to Education Code Section 5342 and Part 3 (commencing with Section 10400) of Division 10 of the Elections Code, the County Registrar and the San Diego County Board of Supervisors ("County Board") are hereby requested to take any and all actions necessary to consolidate the Election ordered hereby with any and all other elections to be held on November 6, 2018, within the boundaries of the District, and to take all other actions necessary to call and conduct the Election specified herein. The County Registrar, the County Clerk and the County Board are hereby also requested to take all other actions necessary to conduct the Election called and ordered hereby.

Section 10. Pursuant to Section 5303 of the Education Code and Section 10002 of the Elections Code, the County Board is requested to permit the County Registrar to render all services specified by Section 10418 of the Elections Code relating to the Election, for which services the District agrees to reimburse San Diego County ("County") in full upon presentation of a bill from the County, such services to include the publication of the Notice of School Bond Election and the mailing of the sample ballot and Tax Rate Statement (as described herein).

Section 11. Based upon the requirements of the California Constitution and State law, the Proposition to be voted on by the voters in the District in such Election shall be as set forth in Exhibit "A" attached hereto and incorporated herein by this reference. The full text of the Proposition, which commences with the heading "TEXT OF BOND MEASURE" and includes all of the text thereafter on Exhibit "A," (including Attachment "1") shall be printed in the voter information pamphlet (voter information guide) provided to voters, with such measure designation as is assigned to the Proposition by the County elections official.

Section 12. A Bond Measure Statement, to comply with Education Code Section 5322 and Elections Code Section 13247, and other applicable law, is attached hereto as Exhibit "B-1" and incorporated herein by this reference. The Bond Measure Statement set out in Exhibit "B-1" shall be printed on the ballot form as part of the Election if Elections Code Section 13119 remains in its current form at the time of publication of the Election materials. If Elections Code Section 13119 is amended, such that its requirements are not applicable to the Bond Measure referenced herein, the Bond Measure Statement in Exhibit "B-2" shall be utilized as part of the Election. The Superintendent, Assistant Superintendent, Business Services and District legal counsel are hereby authorized to communicate with, and provide directions to, the County Registrar as to the form of the Bond Measure Statement to be used.

Section 13. Notice of such Election (Bond Measure) shall be provided by the County Registrar as provided for under State law.

Section 14. If the Bonds are approved pursuant to the requirements of the California Constitution and applicable State law, the Board shall establish and appoint members to an independent citizens' oversight committee in accordance with the requirements of Article 2 of Chapter 1.5 of Part 10 of the Education Code.

Section 15. Pursuant to Education Code Section 15272, and as included in Exhibit "A" attached hereto, the Board hereby directs that the County Registrar cause to be printed in or on the ballot materials for the Election the following statement:

"If this bond measure is approved, the Del Mar Union School District Governing Board of Trustees will appoint a citizens' oversight committee and conduct annual independent audits to assure that bond funds are spent only on school and classroom improvements and for no other purposes."

Section 16. The Board certifies that the proceeds from the sale of the Bonds will be used only for the purposes specified in Article XIIIA, Section 1(b)(3) as further specified in Exhibit "A," and not for any other purpose, including teacher and administrator salaries and other school operating expenses. Further, as required by Article XIIIA, the Board hereby certifies that it has evaluated safety, class size and information technology needs in developing the list of School Facilities projects set forth in Exhibit "A."

Section 17. As required by Article XIIIA, Education Code Section 15278 and California Government Code ("Government Code") Section 53410, in the event fifty-five percent (55%) (or more) of the voters voting in the District approve of the Bonds, the Board shall:

1. (a) conduct annual, independent performance audits to ensure that the funds have been expended only on the School Facilities set out in Exhibit "A";
2. (b) conduct annual, independent financial audits of the proceeds from the sale of the Bonds until all of those proceeds have been expended for the School Facilities set out in Exhibit "A"; and
3. (c) apply the Bond proceeds only to the specific purposes stated in the Proposition.

Section 18. In accordance with Education Code Section 15268, the Bonds will only be issued if the tax rate levied to meet the requirements of Section 18 of Article XVI of the California Constitution will not exceed thirty dollars ($30) per year per one hundred thousand dollars ($100,000) of taxable property for the Bonds authorized in this Election when assessed valuation is projected by the District to increase in accordance with Article XIIIA of the California Constitution.

Section 19. The Board finds that funding of infrastructure and capital projects must be supported in the future in order to provide quality school facilities and a positive learning environment for the District's students and to support the District's mission of education.

Subject to fiscal requirements of the District, as directed by the Board, the Board hereby finds and directs as follows:

1. (a) the Board supports a fair and open competition process for all bond-funded construction projects.
2. (b) that the Board does not plan to build and maintain its bond-funded capital facilities under a Project Labor Agreement (PLA). In the event the Board shall, in the future, consider the use of a PLA for bond-funded construction projects, the District shall provide advance notice of such action to the public.
3. (c) in the expenditure of bond funds for District projects the District will pursue practical opportunities to utilize or expand community joint use facilities for new or expanded school sites. In pursuing such joint use efforts the District shall have as a goal maximizing the use of District facilities to the broader community without adversely affecting District operations, campus or student safety and security or District finances.
4. (d) that Bond funds will not be expended for operations and maintenance costs of the District.
5. (e) that the Bond terms of each series of Bonds will be structured to be consistent with the useful life of the capital facilities funded with each series of bonds as and when issued.

Section 20. To the extent applicable, the Board finds that in connection with the calling of the Election and in accordance with Education Code Section 15100(c), the District has obtained reasonable and informed projections of assessed property valuations that take into consideration projections of assessed property valuations within the boundaries of the District as made by the County Assessor.

Section 21. Pursuant to Government Code Sections 53410 and 53411 and other provisions of State law, the Board hereby finds, determines and directs as follows:

1. (a) The purpose of the Bonds to be authorized pursuant to the Election is to finance the School Facilities as described herein.
2. (b) The Board hereby directs that at the time the Bonds are authorized by the Board for issuance and sale, the Board shall provide, in such issuance resolution or other Bond issuance documents, that the proceeds of the Bonds shall be used only for the purpose set forth in Section 21(a), above.
3. (c) The Board hereby directs that at the time the Bonds are authorized by the Board for issuance and sale, the Board shall provide in such issuance resolution or other Bond issuance documents for the creation of one or more funds or accounts (which may include subaccounts) into which the proceeds of the Bonds, or each series of Bonds, as the case may be, shall be deposited. The Bonds may be issued in one or more series consistent with applicable law, including the provisions and restrictions of this Section 21, which shall apply to each such series of the Bonds.
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4. (d) The District's Superintendent, or the District's Assistant Superintendent, Business Services (as shall be applicable), shall have the responsibility (once the Bonds are authorized and issued) to provide to the Board, no less often than annually, a written report which shall contain at least the following information:
1. (i) The amount of the Bond proceeds received and expended within the identified period of time. If no Bonds have been issued and sold, the report may simply note such situation;
2. (ii) In the event that Bonds have been issued and sold, and proceeds therefore received, the report shall include the status of the acquisition, construction or financing of the School Facilities with the proceeds of such Bonds or series of Bonds; and
3. (iii) In the event that taxes have been levied in a fiscal year to pay principal and interest on the Bonds, the amount of principal and interest due on the Bonds in the corresponding calendar or fiscal year.

The report required by this Section 21(d) may be combined with other periodic reports which include the same information, including, but not limited to, periodic reports made to the California Debt and Investment Advisory Commission or continuing disclosure reports or other reports made in connection with the Bonds, or any series thereof.

The requirements of this Section 21(d) shall apply only until all Bonds, or each series of Bonds, are redeemed or defeased, but if the Bonds or any series of Bonds are refunded, such provisions shall apply until all such refunding Bonds are redeemed or defeased.

Section 22. The Bonds may be issued in one or more series by the District from time to time, and each series of Bonds shall mature not more than the applicable legal limit from the date of issuance thereof. The Bonds shall be issued under the Education Code, under the provisions of Section 53506 of the Government Code, or under any other provision of law authorizing the issuance of general obligation bonds by school districts.

Section 23. Any or all of the members of this Board are authorized to act as an author of any ballot argument prepared in connection with the Election, including a rebuttal argument.

Section 24. The Superintendent, Assistant Superintendent, Business Services, President of the Board, and their respective designees, are hereby authorized to execute and deliver any Tax Rate Statement (prepared or provided pursuant to Elections Code Sections 9400 – 9404) or any other document and to perform all other acts or actions necessary to place the Bond Measure called hereby on the ballot and to conduct the Election ordered herein. This shall include, but shall not be limited to, payment to the County for costs or expenses incurred by the County in calling and conducting the Election for the Proposition as directed herein. Such costs may, to the extent legally permissible, be recovered as a cost of issuance of the Bonds if so authorized by the electors.

Section 25. The Superintendent, the Assistant Superintendent, Business Services, the President of the Board, and/or their respective designee(s), are hereby authorized and directed to make any changes to the text of the Proposition or the Bond Measure Statement referenced in 7
005892.00097
20656824.1 Section 12 hereof and set forth in Exhibits "A" and "B-1" or "B-2", as applicable as required to conform to any requirements of Section 1(b) of Article XIIIA of the California Constitution, Proposition 39, State law or the County Registrar.

Section 26. The adoption of this Resolution, and the call and conducting of the Election, is not a "project" for purposes the California Environmental Quality Act, Division 13 (commencing with Section 21000) of the Public Resources Code ("CEQA") but that each of the projects specified in Exhibit "A" will be accomplished in accordance with the applicable requirements of CEQA. The Clerk of the Board is authorized and directed to complete, execute and file, or arrange for filing of, a Notice of Exemption in such regard.

Section 27. The Superintendent, the Assistant Superintendent, Business Services, President of the Board, Clerk of the Board and/or their respective designee(s), District staff and District consultants are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to give effect to and comply with the directives, terms and intent of this Resolution. Such actions heretofore taken by such officers, officials, consultants and staff are hereby ratified, confirmed and approved.

Section 28. This Resolution shall take effect upon its adoption.

[Remainder of this page intentionally left blank.]

ADOPTED, SIGNED AND APPROVED this 6th day of August, 2018.

GOVERNING BOARD OF TRUSTEES OF THE
DEL MAR UNION SCHOOL DISTRICT

By: ________________________________________
President of the Board of Trustees of the Del
Mar Union School District

By: ________________________________________
Clerk of the Board of Trustees of the Del Mar
Union School District

STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )

I, Erica Halpern, Clerk, Board of Trustees of the Del Mar Union School District, do hereby certify that the foregoing Resolution was duly adopted by the Board of Trustees of the Del Mar Union School District at a meeting thereof held on the 6th day of August, 2018, at which meeting a quorum of such Board was present and acting throughout and for which notice and an agenda was prepared and posted as required by law, and that such Resolution was so adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Clerk, Board of Trustees of the Del Mar Union School District

10

STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )

I, Erica Halpern, Clerk of the Board of Trustees of the Del Mar Union School District, do hereby certify that the foregoing is a full, true and correct copy of Resolution No. 2018-20 of such Board and that the same has not been amended, rescinded or repealed.

Dated this 6th day of August, 2018.

Clerk, Board of Trustees of the Del Mar Union School District