Commentary on Measure Y2018

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 Y2018 Question

A-1

EXHIBIT A

"To upgrade educational facilities/provide 21st Century technology to affordably prepare local students for jobs/university transfer, update classrooms/labs for career training in public safety, design, computer graphics, theatrical arts; acquire, construct, repair classrooms, facilities, sites/ equipment, shall this Allan Hancock Joint Community College District measure to issue $75,000,000 in bonds, at legal rates/replace bonds authorized in 2006, levy 1.1 cents/$100 assessed value, $2,900,000 annually while bonds are outstanding be approved, with oversight, audits, no administrators' salaries?"

Bonds - Yes Bonds – No

10

Impartial Analysis for Measure Y2018

IMPARTIAL ANALYSIS BY COUNTY COUNSEL
MEASURE Y2018
ALLAN HANCOCK JOINT COMMUNITY COLLEGE DISTRICT

This measure was placed on the ballot by the Board of Trustees of the Allan Hancock Joint Community College District, which is the governing board of the District.

If approved by 55% of the voters voting on the proposition, this measure would authorize the District to issue and sell bonds of up to $75,000,000 in aggregate principal amount, at legal rates, to provide financing for the specific college facilities projects listed in the District's Project List. The Project List, as well as the full text of the measure, are printed in the voter information guide. None of the proceeds from the sale of bonds may be used for teacher or administrator salaries or operating expenses.

The bonds and interest thereon would be payable from property taxes levied on taxable property in the District. These taxes would be in addition to the property taxes currently levied on taxpayers in the District; however, the measure, if approved, provides for cancellation of the District's remaining Measure I2006 bond authorization. The amount of the increased taxes each year would depend upon the amount needed to pay the principal and interest on the bonds. The District's estimate of the final fiscal year in which the tax is anticipated to be collected is 2049-2050.

The bond measure includes the following accountability requirements:

1. A. A requirement that the proceeds from the bond sale be used only for the above purposes and not for any other purpose, including teacher and administrator salaries, and other college operating expenses.
2. B. A list of the specific college facilities projects to be funded and certification that the college district board has evaluated safety, class size reduction and information technology needs in developing that list.
3. C. A requirement that the college district board conduct an annual, independent performance audit to ensure that the funds have been spent only on the specific college facilities projects listed in the Project List.
4. D. A requirement that the college district board conduct an annual, independent financial audit of the proceeds from the sale of the bonds until all of such proceeds have been spent for the college facilities projects listed in the Project List.
5. E. If the measure is approved, the District Board of Trustees will also establish an independent citizens' oversight committee to ensure bond proceeds are used only to fund the specific projects listed in the Project List, as printed in the voter information guide.

/s/ Michael C. Ghizzoni
County Counsel
July 26, 2018

Argument in Favor of Measure Y2018

ARGUMENT IN FAVOR OF
MEASURE Y2018
ALLAN HANCOCK JOINT COMMUNITY COLLEGE DISTRICT

Vote YES on Measure Y for Allan Hancock College – a modern campus for a modern workforce.

Measure Y will allow Hancock to:

• o Build state-of-the-art classrooms
• o Expand technology-focused and career education training programs
• o Prepare students for high-demand and high-wage 21st-century careers
• o Strengthen job training in areas such as science, technology, engineering and mathematics (STEM), healthcare, agriculture, public safety, graphic design, and sports medicine. Measure Y will allow Hancock to continue fueling the community's economic engine by enhancing modern skills for the modern workforce.

Nearly half of the buildings on Hancock's Santa Maria campus were built more than 50 years ago. Thanks to a robust maintenance program, the buildings lasted well past their useful life. On the south end of the district, Measure Y supports expansion of career education and public safety programs in Lompoc and the Santa Ynez Valley.

Measure Y will allow Hancock to replace unsafe and obsolete buildings, labs and facilities to provide optimal learning environments for the most in-demand classes, such as sports medicine, law enforcement, graphic design, PCPA, and STEM programs.

Measure Y will also protect access to local, affordable higher education. With 17 years as the state's top transfer institution to Cal Poly, Hancock has a proven track record of preparing local students for four-year degrees and promising careers.

Measure Y allows Hancock to provide affordable, quality higher education for students and working families throughout our community.

Taxpayer accountability and transparency measures are built into Measure Y, including:

• o An Independent Citizens Oversight Committee;
• o All funds from the bond measure must be spent locally;
• o Annual Fiscal Audits; and
• o Not one penny of the bond can be used for administrator, staff or faculty salaries.

Please join us and your neighbors in supporting Measure Y for Allan Hancock College.

The undersigned author(s) of the Argument in Favor of ballot measure Y2018 at the Allan Hancock Joint Community College District for the general election to be held on November 6, 2018, hereby state that such argument is true and correct to the best of their knowledge and belief.

Rebuttal to Argument in Favor of Measure Y2018

REBUTTAL TO THE ARGUMENT IN FAVOR OF
MEASURE Y2018
ALLAN HANCOCK JOINT COMMUNITY COLLEGE DISTRICT

Let's talk law. Law says Measure I could tax you $25 per $100,000 maximum. Why is your tax rate $23.50 with $34,230,867.50 unissued? District spent like drunken sailors. It issued CABs (capital appreciation bonds, like those in Poway Unified scandal) THREE TIMES! Law prohibits it from issuing more bonds.

Constitution prohibits operating costs like "basic repairs," "fiscal reporting," facility master plan preparation."

NO ADMINISTRATOR SALARIES?
Constitution says no salaries. Statutes say no salaries. Resolution, question, measure, and argument say no salaries. Guess what lawyers sneaked in? Hint: "reimburse the District for the cost of District staff." Salaries will be paid. You can take that to the bank.

PENSIONS?
Shifting salaries and operating costs to bonds means more money for extravagant pensions.

OVERSIGHT?
Have you ever seen expenditure reports from Measure I? Good stewardship? It's all fake news.

FACTS
Lawyers and advisors made $2,780,294 (payable by you, with interest) from facilities bonds issued since 2005.

It's a contract. Have you read the fine print? Besides District salaries, what else does it pay for? – "performing arts," "field lights," "press box," and on and on.

District's spent $134,997,103 since 2006 from Measure I. Why are you buying Measure I promises again?

BOTTOM LINE
Can you trust District? When you're not looking, will District breach law, its promises, and your trust?

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

You're being deceived! Don't sign a blank check. Vote NO! Learn more: http://bit.ly/NoAHCBond

The undersigned author(s) of the Rebuttal to the Argument in Favor of ballot measure Y2018 at the Allan Hancock Joint Community College District for the general election to be held on November 6, 2018, hereby state that such argument is true and correct to the best of their knowledge and belief.

Argument Against Measure Y2018

ARGUMENT AGAINST
MEASURE Y2018
ALLAN HANCOCK JOINT COMMUNITY COLLEGE DISTRICT

What does "replace bonds authorized in 2006" mean? Where is it described? What is District hiding? Can you trust District?

That's enough for a big NO on Measure Y2018!

Has District actually delivered on its promises?

Why waste your money on vague, unenforceable promises?

Don't be deceived by District's campaign, funded by businesses that will likely benefit from bond money. (Isn't that called pay-to-play?) Beware of high-priced marketers masquerading as "parents, instructors, and community leaders."

Why Vote No on Measure Y2018?

• - It's virtually, word-for-word, identical to every other bond measure written by lawyers and advisors who travel California tempting districts with a pot of gold – at handsome profits, of course.
• - Did you hear about a list of projects? Why isn't there a list of SPECIFIC projects in Measure Y2018? Because it would restrict District to spend money ONLY on those things?
• - Were you surveyed? Did you get a campaign mailer from District? YOU PAID for it all. Is that fair? Using your money for campaign purposes?
• - Would you purchase a home or car without knowing details? If Measure Y2018 passes, only guarantee is that you will pay estimated $200,000,000 in taxes and District will spend the money. On what? District will decide after money's in the bank.

Proposition 39 permits a bare majority of voters (55%) to approve these bonds. "To ensure that BEFORE they vote, voters will be given a list of specific projects their bond money will be used for," it requires that Measure Y2018 be a "list of the specific school facilities projects to be funded." (Source: Proposition 39 ballot measure.)

Measure Y2018's intentionally vague language gives District a BLANK CHECK with NO ACCOUNTABILITY.

Don't throw your money away on intentionally vague, unenforceable promises.

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

The undersigned author(s) of the Argument Against ballot measure Y2018 at the Allan Hancock Joint Community College District for the general election to be held on November 6, 2018, hereby state that such argument is true and correct to the best of his/her/their knowledge and belief.

Rebuttal to Argument Against Measure Y2018

REBUTTAL TO THE ARGUMENT AGAINST
MEASURE Y2018
ALLAN HANCOCK JOINT COMMUNITY COLLEGE DISTRICT

As local citizens and volunteer committee members, we are disappointed by the inaccurate and intentionally deceptive language contained in the "against" argument. Allan Hancock College is the premier provider of affordable, quality education in our region and we have been honored to support the college with our own time and resources. Above all, Allan Hancock College has been a mindful steward of our resources.

It is without question that the college properly managed Measure I funds. This is reflected by our Citizen Oversight Committee and independent, external audits. College leadership refinanced existing bonds three times over the past five years, providing a savings of $12 million to local taxpayers. All of the savings went to taxpayers - no additional funds accrued to the college.

Measure Y addresses core issues for our community and will create a modern, high-tech campus for our students.

When you support Measure Y, you support a college that:

• • is meeting its mission with record numbers of graduates;
• • is financially sound with excellent reserves and fully funded pension liabilities; and,
• • is properly managed, allocating more than $5m each year for maintenance of our capital facilities.

The Aspen institute continues to identify the college as one of the top schools, not just in California, but in the entire nation. A vote for Measure Y is a vote to continue providing high-quality degrees that lead to good jobs, transfer to four-year colleges and a better workforce for our community.

The undersigned author(s) of the Rebuttal to the Argument Against ballot measure Y2018 at the general election for the Allan Hancock Joint Community College District to be held on November 6, 2018, hereby state that such argument is true and correct to the best of his/her/their knowledge and belief.

Full Text of Measure Y2018

B-1

EXHIBIT B

FULL TEXT BALLOT PROPOSITION

ALLAN HANCOCK JOINT COMMUNITY COLLEGE DISTRICT

BOND MEASURE ELECTION NOVEMBER 6, 2018

"To upgrade educational facilities/provide 21st Century technology to affordably prepare local students for jobs/university transfer, update classrooms/labs for career training in public safety, design, computer graphics, theatrical arts; acquire, construct, repair classrooms, facilities, sites/ equipment, shall this Allan Hancock Joint Community College District measure to issue $75,000,000 in bonds, at legal rates/replace bonds authorized in 2006, levy 1.1 cents/$100 assessed value, $2,900,000 annually while bonds are outstanding be approved, with oversight, audits, no administrators' salaries?"

Bonds - Yes Bonds – No

PROJECTS

The Board of Trustees of the Allan Hancock Joint Community College District, to be responsive to the needs of its community, evaluated Allan Hancock College's urgent and critical facility needs and its capacity to provide local students with support and job training facilities, an affordable education and prepare them for success in college and careers. Job training facilities, safety issues, class size and offerings, and information and computer technology were each considered in developing the scope of projects to be funded, as such are outlined in the District's updated the 2014-2024 Facilities Master Plan dated July 22, 2014 and incorporated herein by reference in its entirety (the "Master Plan"), and available for review on the District's website. In developing the scope of projects, basic repairs, job training facilities, campus safety, and the expansion of opportunities for local students to receive an affordable, quality education, were prioritized. If these facility needs are not addressed now, the District's Colleges would be unable to remain competitive in preparing students for jobs in high demand industries and university transfer. The Board of Trustees determines that Allan Hancock College MUST:

1. (i) Maintain affordable education for local students and returning veterans;
2. (ii) Provide 21st Century technology to meet job market needs;
3. (iii) Upgrade or replace aging facilities that are more than 50-years old;
4. (iv) Adhere to stringent FISCAL ACCOUNTABILITY safeguards including:
1. (a) All expenditures will be subject to annual independent financial audits,
2. (b) No funds will be used for administrators' salaries and pensions,
3. (c) An independent citizens' oversight committee will be appointed to ensure that all funds are spent only as authorized.

11
B-2

The following types of projects are authorized to be undertaken at the Santa Maria, Lompoc and Solvang campuses of Allan Hancock College:

PROVIDE AN AFFORDABLE EDUCATION
FOR LOCAL STUDENTS

Basic Upgrade Projects Needed To Make Allan Hancock College
a Resource for Students Seeking a Career Change or Specialized Job Training

Goal and Purpose: Because the U.C. and Cal State systems have become so expensive, we need to invest in necessary campus upgrades so that local students can obtain a high quality, affordable education and access to relevant job training.

• ? Update educational facilities and technology to prepare students for 21st Century jobs.
• ? Replace aging building and facilities.
• ? Upgrade college safety and security systems.

PROVIDE JOB TRAINING AND COLLEGE TRANSFER

Classroom Improvements
To Help Students Transfer to Four-Year
Universities or Be Trained For High Demand Jobs

Goal and Purpose: Allan Hancock College provides essential job training for students, veterans, and local residents to prepare them to become part of our local workforce. This measure will upgrade classrooms, facilities and technology, to expand access to training programs that help students learn new skills and find better paying jobs in jobs in business, public safety, firefighting, technical arts, hospitality and other high demand careers.

• ? Update or construct classrooms and technology to prepare students, veterans and workers for 21st century jobs and university transfers.
• ? Upgrade career technical (vocational), fine arts and physical education facilities in Santa Maria.
• ? Improve vocational training facilities and upgrade equipment for technical theater education programs in the Santa Ynez Valley.
• ? Provide facilities to prepare students to transfer to four-year colleges and universities.
• ? Improve, construct and expand public safety training complex in Lompoc.
• ? Improve vocational classrooms and labs for police and firefighting programs.

* * *

The listed projects will be completed as needed. Each project is assumed to include its share of furniture, equipment, architectural, engineering, and similar planning costs, program/project 12
B-3 management, a customary contingency, and costs associated with the Total Cost of Ownership of facilities and equipment. In addition to the listed projects stated above, authorized projects also include the acquisition of a variety of instructional, maintenance and operational equipment, including interim funding incurred to advance fund projects from payment of the costs of preparation of all facility planning, fiscal reporting, facility studies, assessment reviews, facility master plan preparation and updates, environmental studies (including environmental investigation, remediation and monitoring), design and construction documentation, and temporary housing of dislocated college activities caused by construction projects. In addition to the projects listed above, repair, renovation and construction projects may include, some or all of the following: replace or remove outdated buildings and classrooms and construct new classrooms and support buildings; install wiring and electrical systems to safely accommodate computers, technology and other electrical devices and needs; upgrade classrooms; build or upgrade facilities including indoor/ outdoor physical education facilities, upgrade and install interior and exterior lighting systems; replace water lines and valves and sewer lines; construct, upgrade, acquire or expand multi-use classrooms and labs, fine arts and visual and performing arts facilities, swing space, outdoor classrooms/ performance space, gyms, showers, lockers, field lights, bleachers, press box, and instructional buildings, and athletic fields; repair fire safety equipment, including alarms, smoke detectors, sprinklers, emergency lighting, and fire safety doors; improve inner city grid track, high speed track, demolition of unsafe facilities; install or upgrade new security systems, such as security (surveillance) cameras, burglar alarms, handrails, outdoor lighting, fencing, landscaping, gates, gateways and classroom door locks. The upgrading of technology infrastructure includes, but is not limited to, upgrading classroom technology, expanding wireless internet access throughout both college campuses, acquire portable interface devices, servers, switches, routers, modules, sound projection systems, information systems, printers, digital white boards, communication systems, audio/visual and telecommunications systems, call manager and network security/firewall, Internet connectivity, wireless systems, technology infrastructure, and other miscellaneous IT and instructional equipment, DATA storage, fiber/copper infrastructure, phones, identity access cards and the creation and funding of a technology endowment.

The allocation of bond proceeds may be affected by the final costs of each project. Some projects may be undertaken as joint use projects in cooperation with other local public or non-profit agencies. The budget for each project is an estimate and may be affected by factors beyond the District's control. The final cost of each project will be determined as plans and construction documents are finalized, construction bids are received, construction contracts are awarded and projects are completed. Based on the final costs of each project, certain of the projects described above may be delayed or may not be completed. Demolition of existing facilities and reconstruction of facilities scheduled for repair and upgrade may occur, if the Board determines that such an approach would be more cost-effective in creating 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, 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 cost 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. The District shall create an account into which proceeds of the bonds shall be deposited and comply with the reporting requirements of Government Code § 53410.

* * *

13
B-4

FISCAL ACCOUNTABILITY

This bond measure has strict accountability requirements including:

1. All money will benefit Allan Hancock College campuses and CANNOT BE TAKEN BY THE STATE.

2. NO MONEY can be used for ADMINISTRATOR SALARIES or pensions.

3. Require TAXPAYER OVERSIGHT and yearly audits to ensure all funds are used locally, effectively and as promised.

4. NO ADMINISTRATOR SALARIES. Proceeds from the sale of the bonds authorized by this proposition shall be used only for the acquisition, construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, and not for any other purpose, including teacher, faculty and college administrator salaries, pensions and other operating expenses.

5. CANCEL REMAINING MEASURE I Bond authorization if this measure is approved.

6. 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 TO ENSURE THAT FUNDS ARE SPENT AS PROMISED AND SPECIFIED. THE CITIZENS' OVERSIGHT COMMITTEE MUST INCLUDE, AMONG OTHERS, REPRESENTATION OF A BONA FIDE TAXPAYERS ASSOCIATION, A BUSINESS ORGANIZATION AND A SENIOR CITIZENS ORGANIZATION. NO DISTRICT EMPLOYEES OR VENDORS ARE ALLOWED TO SERVE ON THE CITIZENS' OVERSIGHT COMMITTEE.

14

Measure Y2018 Tax Rate Statement

TAX RATE STATEMENT BY
MEASURE Y2018
ALLAN HANCOCK JOINT COMMUNITY COLLEGE DISTRICT

An election will be in the Allan Hancock Joint Community College District (the "District") on November 6, 2018, to authorize the sale of up to $75,000,000 in bonds of the District to finance school facilities as described in the proposition. If the bonds are approved, the District expects to sell the bonds in multiple series. Principal and interest on the bonds will be payable from the process of tax levies made upon the taxable property in the District. The information regarding tax rates is provided to comply with Section 9401 of the Election Code of the State of California. 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, including principal and interest 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 that bond issue over the entire duration of the bond debt service, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors is 1.1 cents/$100 of assessed valuation ($11/$100,000) of all property to be taxed. The best estimate of the final fiscal year in which the tax is anticipated to be collected is 2049-2050.
2. 2. The best estimate from official sources of the highest tax rate that would be required to be levied to fund that bond issue, and an estimate of the year in which that rate will apply, based on assessed valuations available at the time of the election or a projection based on experience within the same jurisdiction or other demonstrable factors is 1.1 cents/$100 of assessed valuation ($11/$100,000) of all property to be taxed.
3. 3. The best estimate from official sources of the total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold is $142,543,028.

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

/s/ Kevin G. Walthers, Ph.D., President/Superintendent, Allan Hancock Joint Community College District
Dated: 6/21/18

Measure Y2018 Agenda Description

Agenda of January 16, 2018 (complete item)

6. Information 3:15 PM

6.A. Consideration for a 2018 Bond Measure Page 3

An opportunity to consider future funding to complete unfinished projects.

INFORMATION ITEM

To: Board of Trustees Date:

From: Superintendent/President January 16, 2018

Subject: Consideration for a 2018 Bond Measure

Item

Number:

6.A.

Strategic

Goal:

Goal IR2: To develop district financial resources adequate to support quality programs and services.

Enclosures: Page 1 of 1

BACKGROUND

Bond Measure I, passed in 2006, provided more than $150 million for renovation, new construction and technology upgrades for the campus. Over the course of the past decade, the college invested in projects that provide quality educational opportunities in areas that lead directly to employment, including:

Even with this significant investment, there are still projects to be completed. Staff will present to the board options for future funding, including the process required to return to the voters for a new bond to complete the projects left unfinished from Measure I.

Minutes of January 15, 2018 (complete item)

6. Information

6.A. Consideration for a 2018 Bond Measure

Dr. Walthers explained passing a bond in November would be a way to fund unfinished projects. He reviewed the assessed value of properties within the district boundaries and explained the district's bonding capacity. There was a discussion regarding outstanding projects from bond measure I, including the athletic facility repairs, nursing workstations in Lompoc, and the fine arts building. He explained the fine arts building is funded by a donation, state funds, and a possible bond or certificates of participation. He reviewed the timeline for November 2018 election. He offered to reach out to community members and gauge support for the bond.

A Status Report on Bond Measure I Projects
http://dfl.hancockcollege.edu/Board/docs/2018-02-13%20Board%20Book.pdf#page=109

Public Safety Complex Project , Settlement Agreement
http://dfl.hancockcollege.edu/Board/docs/2018-03-13%20Board%20Book.pdf#page=170

Bond Measure I Citizens’ Oversight Committee 2017 Annual Report http://dfl.hancockcollege.edu/Board/docs/2018-03-13%20Board%20Book.pdf#page=188

Agenda of June 15, 2018 (complete item)

ALLAN HANCOCK JOINT COMMUNITY COLLEGE DISTRICT
BOARD OF TRUSTEES

MEETING NOTICE
Special Board Meeting
Friday, June 15, 2018
8:30 a.m.

3. Resolution 18-31, Ordering an Election and Establishing Specifications of the Election Order Page 2

A recommendation that the board of trustees adopt Resolution 18-31, Ordering an Election and Establishing Specifications of the Election Order.

ACTION ITEM

To: Board of Trustees

Date: June 15, 2018

From: Superintendent/President

Subject:
Resolution 18-31 Ordering an Election and Establishing Specifications of the Election Order
Item Number: 3

Strategic Goal:
Goal IR4: To provide a safe, attractive, and accessible physical environment that enhances the ability to teach, learn, and work.
Enclosures: Page 1 of 13

BACKGROUND

State law requires the board of trustees to order community college district bond elections. The county registrar of voters will conduct the election on behalf of the district, including publishing all required notices. This resolution meets the statutory requirements for describing the projects to be funded with the proceeds of the bonds, which are included as Exhibit B to the resolution. A 75-word summary of the measure, as it will appear on the ballot, is also included in the resolution as Exhibit A. The resolution also provides that if the 2018 measure passes, the remaining bond authorization under Measure I will be cancelled.

This election will be called under constitutional and statutory provisions that require fifty-five percent (55%) voter approval, and certain accountability requirements, including annual independent financial and performance audits of how funds are spent, and the formation of a Citizens' Bond Oversight Committee. Following adoption, the resolution (including the signed tax rate statement) must be delivered to the registrar of voters and the board of supervisors. State law requires that 2/3rd of a college board support the resolution calling an election requiring 55 percent voter approval. At least four (4) board members must vote "Yes" in order to call the election.

In 2006 the voters of the Allan Hancock Joint Community College District passed Measure I to update and improve the facilities of the college. Measure I resulted in a transformation of the college, improving training facilities for public safety, career education, the sciences along with a consolidation of student services to better support student success.

The Measure I oversight committee has been an active steward of the community's investment, ensuring that funds were properly spent. Throughout the expenditure process, the Measure I program received no findings from external auditors. Over the past five years, staff have worked to refinance existing bonds, saving taxpayers more than $12 million.

(Continued)

2

More than a decade later, there are still projects to complete that will support the training of our students. Staff propose that the board adopt a resolution to place on the ballot a measure to authorize an additional $75 million in bonds. The funds would go to replace buildings that have outlived their useful life and support programs in career technical education, fine and performing arts, physical education and campus technology.

Based on the college's facilities master plan, staff have identified projects that could be funding through a new bond measure, including:

• ? Fine Arts Complex (art, performance, graphic design, computer animation, film and photography);
• ? Physical Education and Athletics (kinesiology, athletic training, health and wellness);
• ? Upgrades to the Public Safety Training Facility (law enforcement, fire science, EMT, and environmental technology);
• ? Support for technical theater program in Solvang (lighting design, sound design and event production); and,
• ? Continued investment in campus technology (classroom equipment, connectivity, faculty and staff computing and enterprise systems).

The resolution cancels $34 million in authorized bonds from Measure I, bringing the net total of the new bond measure to $41 million

3
1

FISCAL IMPACT:

Staff estimate that the taxable level at full issuance of the $75 million will be $11.00 per $100,000. Cost to the district general fund for placing the measure on the November ballot are estimated at $25,000 and has been included in the 2018-2019 budget.

RECOMMENDATION:

Staff recommends that the board of trustees adopt Resolution 18-31, Ordering an Election and Establishing Specifications of the Election Order as submitted.

Administrator Initiating Item:
Kevin Walthers

Final Disposition:

Measure Y2018 Resolution

RESOLUTION NO. 18-31

RESOLUTION OF THE BOARD OF TRUSTEES OF ALLAN
HANCOCK JOINT COMMUNITY COLLEGE DISTRICT
ORDERING AN ELECTION, AND ESTABLISHING
SPECIFICATIONS OF THE ELECTION ORDER

WHEREAS, the Board of Trustees (the "Board") of the Allan Hancock Joint Community College District (the "District") has determined that certain educational facilities need to be constructed, renovated, acquired and equipped, in a fiscally prudent manner, to enable the District to maintain Allan Hancock College and its several campuses in Santa Maria, Lompoc and Solvang as valuable community resources that provide an affordable education to local students and veterans who desire to learn job skills and transfer to four-year universities; and

WHEREAS, since the costs of attending California's public universities has become so expensive, more local students are relying on community colleges, such as Allan Hancock College, and the high quality, affordable college options they provide; and

WHEREAS, in today's competitive job environment, Allan Hancock College must continue providing important job training and education for local residents entering the workforce for new professions and increased opportunities for local students to earn college credits, certifications and job skills at a reasonable price; and

WHEREAS, the State is not providing the District with enough money for the District to adequately maintain Allan Hancock College educational facilities and academic programs; and

WHEREAS, the Board has received information regarding the feasibility of a local bond measure and the District's bonding capacity; and

WHEREAS, a local measure will provide funds that cannot be taken away by the State to support local college transfer and job training; and

WHEREAS, a local measure will permit the District to ensure a healthy work and study environment by improving campus safety, replacing 50-year old buildings, and repairing aging mechanical systems; and

WHEREAS, a local measure will allow Allan Hancock College to update education facilities and technology to prepare students for 21st century jobs; and

WHEREAS, a local measure will help Allan Hancock College provide career technical (vocational) education in fields such as public safety, police and emergency response services and firefighting; and

WHEREAS, a local measure will help the District improve services for veterans, returning to civilian life with financial aid, registration, and access to affordable education and career training; and

WHEREAS, a local measure will permit the District to ensure the safety of faculty, staff and students by replacing aging buildings and facilities; and

4
2

WHEREAS, such a local measure will include mandatory taxpayer protections, including an independent citizens' oversight of all funds and mandatory annual financial audits to ensure funds are spent only as authorized; and

WHEREAS, the Board and District has solicited stakeholder and community input on priorities from students, faculty, staff, business and civic leaders, and the community; and

WHEREAS, in the judgment of the Board, it is advisable to provide additional funding for job training and workforce preparation for students of all ages, veterans and local residents and to improve facilities for course opportunities in public safety, hospitality, computer graphics, animation and technology, and other technical vocational careers, by means of a general obligation bond issued in a financially prudent manner; and

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

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

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

WHEREAS, on June 6, 2006, the District's voters approved Measure I, a $180 million bond measure ("Measure I") under the provisions of Proposition 39; and

WHEREAS, the District has issued $145,769,132.50 of bonds under Measure I and has determined that it cannot access the remaining $34,230,867.50 of authorization on terms that are acceptable to the District and advantageous to the taxpayers of the District; and

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

WHEREAS, the Board determines that, in accordance with Opinion No. 04-110 of the Attorney General of the State of California, the restrictions in Proposition 39, which prohibit any bond money to be used for administrator salaries and other operating expenses of the District shall be strictly monitored by the District's Citizens' Oversight Committee; and

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

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

5
3

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

WHEREAS, pursuant to the Elections Code, it is appropriate for the Board to request consolidation of the election with any and all other elections to be held on November 6, 2018, and to request each of the Santa Barbara County Registrar of Voters, the San Luis Obispo County Registrar of Voters and the Ventura County Registrar of Voters to perform certain election services for the District; and

WHEREAS, in the judgment of the Board, it is advisable to request the Santa Barbara County Registrar of Voters, the San Luis Obispo County Registrar of Voters and the Ventura County Registrar of Voters to call an election pursuant to Proposition 39 on the question of whether general obligation bonds shall be issued and sold on behalf of the District for purposes set forth below.

NOW THEREFORE, THE BOARD OF TRUSTEES OF ALLAN HANCOCK JOINT COMMUNITY COLLEGE DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. That the Board, pursuant to Education Code Sections 15100 et seq., Sections 15264 et seq. and Government Code Section 53506, hereby requests each of the Santa Barbara County Registrar of Voters, the San Luis Obispo County Registrar of Voters and the Ventura County Registrar of Voters to call an election under the provisions of Proposition 39 and the Act and submit to the electors of the District the question of whether bonds of the District in the aggregate principal amount of $75,000,000 (the "Bonds") shall be issued and sold to raise money for the purposes described in Exhibits "A" and "B" hereto. Both exhibits are directed to be printed in the voter sample ballot pamphlet. The District's Superintendent/President or designee is hereby authorized and directed to make any changes to the text of the measure, or to the abbreviated form of the measure, as may be convenient or necessary to comply with the intent of this Resolution, the requirements of election officials, and requirement of law. If the bonds are approved and once issued, the Board covenants that it will cancel and shall not authorize the issuance of any remaining Measure I bonds.

Section 2. That the date of the election shall be November 6, 2018.

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

1. (a) the proceeds of the sale of the Bonds shall only be used for the purposes set forth in the ballot measure and not for any other purpose, including faculty and administrator salaries and other college operating expenses;
2. (b) the Board, in compliance with Proposition 39, and in establishing the projects set forth in Exhibit "B", evaluated the safety, university transfer, enrollment trends, class size reduction, class availability, information technology and technical job training facilities of the District;
3. (c) the Board will cause to be conducted an annual, independent performance audit to ensure that the Bond moneys get expended for the projects identified in Exhibits "A" and "B" hereto;

6
4

4. (d) the Board will cause an annual, independent financial audit of the proceeds from the sale of Bonds to be conducted until all of the Bond proceeds have been expended and accounted for;
5. (e) the Board will cause the appointment of a Citizens' Oversight Committee in compliance with Education Code Section 15278 no later than 60 days after the Board enters the election results in its minutes pursuant to Education Code Section 15274. The Citizens' Oversight Committee shall initially consist of at least seven (7) members and at no time consist of less than seven (7) members, with the possible exception of brief periods to fill any unexpected vacancies. The Citizens' Oversight Committee may not include any employee or official of the District or any vendor, contractor or consultant of the District. The Citizens' Oversight Committee shall include all of the following: One (1) member who is active in a business organization representing the business community located within the District; One (1) member who is active in a senior citizens' organization; One (1) member who is active in a bona fide taxpayer association. In furtherance of its specifically enumerated purposes, the Citizens' Oversight Committee may engage in any of the following activities relating solely and exclusively to the expenditure of the Proposition 39 bond proceeds:
1. (i) Receive and review copies of the annual, independent financial and performance audits performed by independent consultant(s);
2. (ii) Inspect District facilities and grounds to ensure that Proposition 39 bond revenues are expended in compliance with applicable law;
3. (iii) Receive and review copies of all scheduled maintenance proposals or plans developed by the District;
4. (iv) Review efforts of the District to maximize Proposition 39 bond revenues by implementing cost-saving programs; and
6. (f) the tax levy authorized to secure the bonds of this election shall not exceed the Proposition 39 limits per $100,000 of taxable property in the District when assessed valuation is projected by the District to increase in accordance with Article XIIIA of the California Constitution.

Section 4. That the authority for ordering the election is contained in Education Code Sections 15100 et seq., 15340 et seq. and 15264 et seq. and Government Code Section 53506.

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

Section 6. That the Santa Barbara County Registrar of Voters, the Santa Barbara County Board of Supervisors, the San Luis Obispo County Registrar of Voters, the San Luis Obispo County Board of Supervisors, the Ventura County Board of Supervisors and the Ventura County Registrar of Voters are hereby requested to consolidate the election ordered hereby with any and all other elections to be held on November 6, 2018 within the District, and pursuant to Elections Code Section 10403, the District acknowledges that the consolidation election will be held and conducted in the manner described in Election Codes Section 10418.

Section 7. That this Resolution shall stand as the "order of election" to the Santa Barbara County Registrar of Voters, the San Luis Obispo County Registrar of Voters and the Ventura County Registrar of Voters to call an election within the boundaries of the District on November 6, 2018.

7
5

Section 8. That the Secretary of the Board is hereby directed to send a certified copy of this Resolution to each of the Santa Barbara County Registrar of Voters, the San Luis Obispo County Registrar of Voters and the Ventura County Registrar of Voters no later than July 5, 2018.

Section 9. That the bonds shall be issued pursuant to Education Code Section 15300 et seq. or issued pursuant to Government Code Section 53506. The maximum rate of interest on any bond shall not exceed the maximum rate allowed by Education Code Sections 15140 to 15143, as modified by Government Code Section 53531. The Board approves the filing of a Tax Rate Statement and primary and rebuttal arguments, as appropriate, and directs their publication in accordance with the requirements of the Elections Code.

Section 10. That the Board requests the governing body of any such other political subdivision, or any officer otherwise authorized by law, to partially or completely consolidate such election and to further provide that the canvass be made by any body or official authorized by law to canvass the returns of the election, and that the Board consents to such consolidation.

Section 11. Pursuant to Education Code Section 5303 and Elections Code Section 10002, the Santa Barbara County Board of Supervisors, the San Luis Obispo County Board of Supervisors and the Ventura County Board of Supervisors are requested to permit their respective Registrars of Voters to render all services specified by Elections Code Section 10418, for which services the District agrees to reimburse each of Santa Barbara County, San Luis Obispo County and Ventura County, such services to include the publication of a Formal Notice of School Bond Election and the mailing of the sample ballot and tax rate statement (described in Elections Code Section 9401) pursuant to the terms of Education Code Section 5363 and Elections Code Section 12112.

ADOPTED, SIGNED AND APPROVED this 15th day of June, 2018.

BOARD OF TRUSTEES OF THE ALLAN
HANCOCK JOINT COMMUNITY COLLEGE
DISTRICT

By
Board President

Attest:

Secretary

8
6

STATE OF CALIFORNIA )
)ss
SANTA BARBARA COUNTY )

I, Kevin Walthers, do hereby certify that the foregoing is a true and correct copy of Resolution No. 18-31 which was duly adopted by the Board of Trustees of the Allan Hancock Joint Community College District at meeting thereof held on the 15th day of June 2018, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

By
Secretary

9

Measure Y2018 Notice of Election

Ventura County

NOTICE OF ELECTION, BALLOT ARGUMENTS, CENTRAL COUNTING PLACE,
AND RANDOM SELECTION OF PRECINCTS FOR MANUAL TALLY

...

NOTICE IS FURTHER GIVEN to the qualified voters of the Rio Elementary School District, that in accordance with the provisions of the Elections Code of the State of California, a Special Election consolidated with the 2018 Statewide General Election will be held on Tuesday, November 6, 2018 at which the following measures will be submitted to the voters:

MEASURE "L"

To improve the quality of education; modernize outdated classrooms, restrooms and facilities; make health, safety, and security improvements; provide HVAC; upgrade technology; and construct new classrooms and libraries, shall Rio Elementary School District issue $59,200,000 of bonds at legal interest rates, raising on average $3,480,000 annually as long as bonds are outstanding, at a rate of approximately 2.7 cents per $100 assessed value, with annual audits, independent oversight committee, NO money for salaries, and all money staying local?

Bonds Yes _____ Bonds No _____

NOTICE IS FURTHER GIVEN to the qualified voters of the Mesa Union School District, that in accordance with the provisions of the Elections Code of the State of California, a Special Election consolidated with the 2018 Statewide General Election will be held on Tuesday, November 6, 2018 at which the following measure will be submitted to the voters:

MEASURE "O"

To improve the quality of education; upgrade outdated classrooms, restrooms and school facilities; replace/renovate aging heating and air-conditioning, deteriorating plumbing, and inadequate electrical systems; make safety and security improvements; shall Mesa Union School District issue $9,875,000 of bonds at legal interest rates, raising an average $532,090 annually as long as bonds are outstanding, at a rate of 3 cents per $100 assessed value, with independent citizens' oversight, NO money for administrative salaries, and all money spent locally?

Bonds Yes _____ Bonds No _____

NOTICE IS FURTHER GIVEN to the qualified voters of the Allan Hancock Joint Community College District, that in accordance with the provisions of the Elections Code of the State of California, a Special Election consolidated with the 2018 Statewide General Election will be held on Tuesday, November 6, 2018 at which the following measure will be submitted to the voters:

MEASURE "Y"

"To upgrade educational facilities/provide 21st Century technology to affordably prepare local students for jobs/university transfer, update classrooms/labs for career training in public safety, design, computer graphics, theatrical arts; acquire, construct, repair classrooms, facilities, sites/equipment, shall this Allan Hancock Joint Community College District measure to issue $75,000,000 in bonds, at legal rates/replace bonds authorized in 2006, levy 1.1 cents/$100 assessed value, $2,900,000 annually while bonds are outstanding be approved, with oversight, audits, no administrators' salaries?"

Bonds Yes _____ Bonds No _____

All direct arguments for Measures "L", "O" and "Y" consisting of no more than 300 words must be submitted to the Office of the County Elections Official, Hall of Administration, 800 South Victoria Avenue, Ventura, CA, between the dates of JULY 24, 2018 and AUGUST 2, 2018 at 5:00 p.m. Rebuttal arguments shall consist of no more than 250 words and may be submitted between the dates of AUGUST 3, 2018 and AUGUST 13, 2018 at 5:00 p.m. Additional information regarding the submittal of arguments may be obtained by calling the County of Ventura Elections Official at (805) 654-2664.

The ballots of the precincts of said Cities and Districts shall be counted at a Central Counting Place, County of Ventura Elections Division, Hall of Administration, 800 South Victoria Avenue, Ventura, CA and any other extensions thereof as determined by the County Clerk and shall be open to the public.

Polling places will be open between the hours of 7:00 a.m. and 8:00 p.m. on Tuesday, November 6, 2018.

NOTICE IS ALSO GIVEN to the qualified voters in the County of Ventura, State of California, that the random selection of precincts to be verified for the one percent manual tally of the votes cast for the November 6, 2018 Statewide General Election will be held on November 8, 2018 at 10:00 a.m. The random selection of precincts will be held in the County of Ventura Elections Division, Hall of Administration, 800 South Victoria Avenue, Ventura, CA, and is open to the public. The manual tally process will begin on November 12, 2018 at 9:00 a.m. and will be held in the County of Ventura Elections Division, Hall of Administration, 800 South Victoria Avenue, Ventura, CA, and is open to the public.

Dated this 18th day of July 2018.

By: MARK A. LUNN
Clerk-Recorder, Registrar of Voters

(To be published Tuesday, July 24, 2018 – Ventura County Star)