HomeMy WebLinkAbout06.13.2024 Board Correspondence - FW_ Durham Unified School District November 2024 Bond Measure.ATTENTION: This message originated from outside Butte County. Please exercise judgment before opening
attachments, clicking on links, or replying..
From:Clerk of the Board
To:Bennett, Robin; Clerk of the Board; Connelly, Bill; Cook, Holly; Cook, Robin; Durfee, Peter; Jessee, Meegan;
Kimmelshue, Tod; Kitts, Melissa; Lee, Lewis; Pickett, Andy; Ritter, Tami; Stephens, Brad J.; Sweeney, Kathleen;
Teeter, Doug; Zepeda, Elizabeth
Cc:Jessee, Meegan
Subject:Board Correspondence - FW: Durham Unified School District November 2024 Bond Measure
Date:Thursday, June 13, 2024 4:43:42 PM
Attachments:Order for Bond Election - Nov 2024 Durham USD(4228831.5).doc
Please see Board Correspondence -
From: Meredith B. Johnson <mjohnson@dwkesq.com>
Sent: Thursday, June 13, 2024 3:04 PM
To: Sigala-Flores, Alexander <asigala@buttecounty.net>
Cc: Clerk of the Board <clerkoftheboard@buttecounty.net>; jbohannon@durhamunified.org; Greg
Isom <greg@isomadvisors.com>; Sean B. Mick <smick@dwkesq.com>
Subject: Durham Unified School District November 2024 Bond Measure
Alex,
Thank you for speaking with me regarding Durham USD’s bond election for the November
ballot. As I mentioned, the Board of Trustees has voted to place a bond measure on the
ballot in November and would like to request that the County consolidate the District’s
measure with the County wide election. The District will arrange for an original executed
Resolution to be delivered to you by the July 16th deadline. I am providing a word version
of the resolution attached here to facilitate type-setting of the measure. Please feel free to
reach out to me with any questions you may have.
Regards,
Meredith
Meredith B. Johnson
Attorney at Law
DANNIS WOLIVER KELLEY
444 W. Ocean Blvd., Suite 1750
Long Beach, CA 90802
MOBILE: 310.779.7827
TEL: 562.366.8500
FAX 562.366.5805
mjohnson@DWKesq.com
www.DWKesq.com
This email message is for the sole use of the intended recipient(s). It may contain confidential and privileged
information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the
intended recipient, please alert the sender by reply email and destroy all copies of the original message.
DURHAM UNIFIED SCHOOL DISTRICT
Butte County, State of California
2023-24
RESOLUTION NO.
RESOLUTION CALLING FOR AN ELECTION AUTHORIZING THE ISSUANCE OF
GENERAL OBLIGATION BONDS OF THE DISTRICT AT AN ELECTION TO BE HELD
NOVEMBER 5, 2024
_______________________________
WHEREAS, the Board of Trustees (the “Board”) of the Durham Unified School District
(the “District”), within the County of Butte, California (the “County”), is authorized to order
elections within the District for the purpose of considering, inter alia, bond measures to
meet the ongoing capital improvement needs of the District, pursuant to the Constitution of
the State of California (the “State”) and the Education Code of the State (the “Education
Code”); and
WHEREAS, this bond measure requires strict accountability protections including
mandatory annual audits and an independent citizens’ oversight committee comprised of
local residents to ensure funds are managed and spent properly; and
WHEREAS, Section 18 of Article XVI and Section 1 of Article XIII A of the
Constitution of the State and Section 15266 et seq. of the Education Code (collectively,
“Prop 39”) provide for a methodology by which the District may call for an election and,
upon approval by 55% or more of the qualified voters voting on the bond measure, issue its
general obligation bonds and cause the County to levy an ad valorem property tax to pay
debt service on said bonds; and
WHEREAS, this Board has determined it to be in the best interests of the District to
call such an election under Prop 39, as further described herein; and
WHEREAS, November 5, 2024 (the “Election Date”) meets the consolidation
requirements of the Education Code and any County or local measure or election may be
consolidated with the Statewide general election then pending; and
WHEREAS, the Board wishes to specify the manner in which the District shall call a
bond election on the Election Date and to demonstrate compliance with related
requirements of the Constitution, the Education Code and the Elections Code of the State;
NOW, THEREFORE, be it hereby resolved, determined and ordered by the Board of
Trustees of the Durham Unified School District as follows:
Section 1. Recitals. All of the foregoing recitals are true.
Section 2. Determination to Proceed under Prop 39. The provisions of Prop 39
shall control the administration of the election to consider the bond proposition of the
District, such that a favorable vote of no less than 55% of the qualified voters voting at the
election shall constitute approval thereof (the “Bond Election”), and the Board of Trustees of
the District (the “Board”) hereby declares its intention to meet the pertinent requirements
of Prop 39.
Section 3. Bond Proposition. This Board does hereby order and request that the
Butte County Clerk-Recorder, Registrar of Voters (herein called the “Registrar”) call an
2
election (in the performance of their duties and in the exercise of their power, alone, or with
the assistance of such other officers of the County as they may request) pursuant to
Elections Code 5303 to consider the proposition attached hereto as Exhibit A on November
5, 2024 (the “Bond Measure”), which constitutes the election order prescribed under
Education Code Section 15122 and Elections Code 13247.
The Registrar is hereby requested to reprint Exhibit A in its entirety in the voter
information pamphlet to be distributed to voters pursuant to Section 13307 of the Elections
Code. As required under Elections Code Section 13247, the abbreviated form of the Bond
Measure to appear on the ballot is attached hereto as Exhibit B. Pursuant to Section 18,
Article XVI and Section 1, Article XIII A of the Constitution of the State, the foregoing Bond
Measure shall become effective upon the favorable vote of no less than 55% of those
qualified voters voting on the proposition.
Section 4. Consolidation of Bond Election; Services of County. Pursuant to
Section 1258 of the Education Code, the Superintendent of the District is hereby authorized
to contract with the Registrar, who is hereby requested and authorized to perform such
duties as may be required by law, necessary or useful, or customary and appropriate in the
conduct of said Bond Election, including the consolidation of the Bond Election with the
general election within the territory of the District being conducted on the Election Date.
The precincts, polling places for said precincts in the County, and persons appointed
and designated to serve as election officers for said Bond Election will be those determined,
designated, and appointed pursuant to state law by the Registrar. The County is hereby
requested to tally and canvass the returns of the election, in accordance with Section 10411
of the Elections Code. The District agrees to reimburse the County for all services related
to the Bond Election, such services to include the publication of the Formal Notice and a Tax
Rate Statement (described in Section 9401 of the Elections Code) pursuant to the terms of
5363 of the Education Code and Section 12112 of the Elections Code.
Section 5. Approval of Project List; Accountability Safeguards. The District has
developed a list of certain capital projects which are a priority in order to meet the
obligations of the District to provide education to the children of its residents, as more
particularly identified on Exhibit A hereto, which is incorporated herein by this reference.
Exhibit A is hereby certified by this Board as the Project List (the “Project List”) for funding,
either in whole or in part, with the proceeds of the general obligation bonds issued pursuant
to the Bond Measure (the “Bonds”). This certification of the Project List shall not be
interpreted by and does not constitute an official approval of any listed project for the
California Environmental Quality Act (“CEQA”) or other purposes, but only as a statement of
present intention of this Board. Furthermore, the listing of a capital improvement on the
Project List does not imply any particular prioritization among such improvements, which
remains the province of the Board by subsequent action. Notwithstanding the foregoing,
only those acquisitions and other capital improvements included on the Project List may be
funded, in whole or in part, with the proceeds of the Bonds. Additional moneys may be
obtained for listed projects, in supplementation of the Bond proceeds, from any lawful
source of moneys.
The Board hereby confirms that it has, in the development of the Project List
appended hereto, evaluated and taken into consideration safety, class size reduction and
information technology needs.
Section 6. Citizens’ Oversight Committee. Pursuant to Section 15278 et seq. of
the Education Code, within 60 days following the certification by this Board of the official
results of the Bond Election by the County, this Board is required to appoint a new or
3
empower an existing Citizens Oversight Committee (the “Committee”) to insure the
District’s compliance with the foregoing restrictions and to perform the duties established
under the Education Code for such committees. To assist the Committee in its statutory
obligations, the District shall cause to be conducted an annual independent performance
audit and an annual independent financial audit on the expenditure of Bond proceeds; the
audits shall be performed under contract with appropriate persons or firms as shall be
subsequently brought for approval before this Board. The financial audit may be
consolidated with the annual audit of the District’s financial statement and may be
performed by the same accounting firm, without further approval by this Board.
The results of the annual audits performed hereunder shall be reported to the Board
and to the Committee at least annually, and more often, if the Board shall so direct.
Section 7. No Administrators’ or Teachers’ Salaries to Be Paid from Bond
Proceeds. In accordance with Prop 39, the Board hereby confirms that no administrators’ or
teachers’ salaries shall be paid or reimbursed, in whole or in part, from Bond proceeds, nor
shall such proceeds be used to pay any other operating expenses of the District.
Section 8. Other Terms of the Bonds. The maturity of any bonds issued
pursuant to the Bond Measure and under Chapter 1.5, Part 10, Division 1, Title 1 of the
Education Code (commencing with Section 15264), as amended, and Article XIIIA of the
California Constitution (“Article XIIIA”) shall not exceed twenty-five (25) years as to
maturity and shall bear interest at a rate not to exceed the maximum legal interest rate per
annum. The maturity of any bonds issued pursuant to the Bond Measure and under Article
4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, as
amended, applicable provisions of the Education Code and Article XIIIA shall not exceed the
applicable legal limits as to maturity, or, in the case of bonds the interest on which is
compounded, the maturity shall not exceed twenty-five (25) years, and shall bear or
accrete interest at a rate not to exceed the maximum legal interest rate.
Section 9. Approval of Election Consolidation; Delivery of Order of Election. The
Clerk of the Board is hereby directed to deliver, no later than July 16, 2024, one certified
copy of this Resolution to the Registrar, together with the Tax Rate Statement attached
hereto as Exhibit C and executed by the Superintendent of the District.
Section 10. Ballot Arguments. The members of the Board, or any one member or
group thereof, are hereby authorized, but not directed, to file a formal Argument in Favor of
the Bond Measure given above, with the Registrar within the time limits established for such
arguments by the Registrar.
Section 11. Retention of Consultants. The District hereby confirms the hiring of
consultants to provide for special services in connection with the proposed issue(s) of Bonds
which may be authorized at the Election, to wit, (i) the law firm of Dannis Woliver Kelley as
Bond Counsel to the District (“Bond Counsel”) and (ii) the financial advisory firm of Isom
Advisors Inc., a division of Urban Futures Inc., as Financial Advisor to the District (the
“Financial Advisor”), upon conditions as may be set forth in the respective fee agreements
heretofore negotiated and executed on behalf of the District by the Superintendent.
Section 12. Reimbursement of Qualified Project Expenditures. The Board presently
intends and reasonably expects to have tax-exempt obligations (the “Obligations”) issued
on its behalf within 18 months of the date of the expenditure of moneys on the Projects
outlined in the foregoing Project List or the date upon which a Project is placed in service or
abandoned, whichever is later (but in no event more than 3 years after the date the original
expenditure of such moneys is paid), and to allocate an amount not to exceed 10% of the
4
proceeds thereof to the reimbursable expenditures in connection with the Project, as may
be qualified under the provisions of Section 1.150-2 of the Treasury Regulations of the
Internal Revenue Service (the “Reimbursable Expenditures”). All of the Reimbursable
Expenditures covered by this Resolution were paid not earlier than 60 days prior to the date
of this Resolution. The Board intends to allocate within 30 days after the date of issue of
the Obligations the proceeds there from to reimburse the District for the Reimbursable
Expenditures. With respect to the proceeds of the Obligations allocated to reimburse the
District for prior expenditures, the Board hereby covenants not to employ an abusive device
under Treasury Regulation Section 1.148-10, including using within one year of the
reimbursement allocation, the funds corresponding to the proceeds of the Obligations in a
manner that results in the creation of replacement proceeds, as defined in Treasury
Regulation Section 1.148-1, of the Obligations or another issuer of tax-exempt obligations.
The above provision is made solely for the purpose of establishing compliance with
the requirements of said Section 1.150-2 of the Treasury Regulations. This provision does
not bind the District or the Board to make any expenditure, incur any indebtedness, or
proceed with the financing, acquisition or construction of the Project.
Section 13. Ratification. All actions heretofore taken by the officers, or their
respective designees, employees and agents of the Board and the District in connection with
the financing of the facilities on the Project List are hereby ratified and confirmed. The
officers and their designees, the employees and agents of the Board and the District are
hereby authorized to take any and all actions in connection with the financing of said
facilities and as may be necessary and consistent with the purposes of this Resolution.
Section 14. Authorization of Further Acts. The members of this Board, the
Superintendent, and the Chief Business Officer of the District (each, a “District
Representative”) are hereby authorized and directed, individually and collectively, to do any
and all things that they deem necessary or advisable in order to effectuate the purposes of
this Resolution. This Resolution and all of its Exhibits that are filed with the County
Registrar by a District Representative shall constitute the final, binding ballot measure of
the District and such submitted measure shall be deemed ratified and approved by the
Board.
5
Section 15. Effective Date. This Resolution shall take effect immediately upon its
adoption by the Board.
PASSED AND ADOPTED this ___ day of ____, 2024, by the Board of Trustees of
Durham Unified School District, at Durham, California, by the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
ABSTAIN: Members:
By:______________________________________
President, Board of Trustees
A-1
EXHIBIT “A”
FULL TEXT BALLOT PROPOSITION OF THE
DURHAM UNIFIED SCHOOL DISTRICT BOND ELECTION
FOR NOVEMBER 5, 2024
By approval of this measure by at least fifty-five percent (55%) of the registered voters
voting thereon, the Durham Unified School District shall be authorized to issue and sell
bonds of up to $24,500,000 million in aggregate principal amount to provide financing
for the specific school facilities projects listed below in the Bond Project List, subject to
all of the accountability safeguards specified herein.
ACCOUNTABILITY MEASURES
The provisions in this section are included in this proposition in order that the voters and
taxpayers of the District may be assured that their money will be spent to address
specific facilities needs of the District, all in compliance with the requirements of Article
XIII A, section 1(b)(3) of the State Constitution, and the Strict Accountability in Local
School Construction Bonds Act of 2000 (codified at Section 15264 et seq. of the
California Education Code).
Evaluation of Needs. The Board has evaluated the facilities needs of the District and
has identified projects to finance from a local bond measure at this time. The Board
hereby certifies that it has evaluated safety, class size and information technology needs
in developing the Bond Project List.
Independent Citizens’ Oversight Committee. The Board shall establish or empower
an existing independent Citizens’ Oversight Committee in accordance with Education
Code sections 15278-15282 and applicable Board policy, to ensure bond proceeds are
expended only for the school facilities projects listed in the Bond Project List. An existing
Citizens’ Oversight Committee may be empowered by the Board to oversee the
expenditure of bond proceeds from this measure. The committee shall be so
empowered, or a new committee established, within sixty (60) days of the date when
the Board enters the results of the election in its official minutes.
Annual Performance Audit. The Board shall conduct or cause to be conducted an
annual, independent performance audit to ensure that the bond proceeds have been
expended only on the school facilities projects described in the Bond Project List.
Annual Financial Audit. The Board shall conduct or cause to be conducted an annual,
independent financial audit of the bond proceeds until all of those proceeds have been
spent for the school facilities projects described in the Bond Project List.
Annual Report to Board. Upon approval of this measure and the sale of any bonds
approved, the Board shall take actions necessary to establish an account in which
proceeds of the sale of bonds will be deposited. As long as any proceeds of the bonds
remain unexpended, the Superintendent shall cause a report to be filed with the Board
no later than January 1 of each year, commencing on the first January 1 after bonds
have been issued and proceeds spent, stating (1) the amount of bond proceeds received
and expended in the past fiscal year, and (2) the status of any project funded or to be
funded from bond proceeds. The report may be incorporated into the annual budget,
annual financial report, or other appropriate routine report to the Board.
A-2
BOND PROJECT LIST
School Renovation, Repair and Upgrade Projects
• Upgrade agriculture and career technical education facilities
• Modernize/renovate outdated classrooms, restrooms and school facilities
• Replace temporary portables with permanent classrooms
• Construct kindergarten and transitional kindergarten classrooms
• Modernize the Durham Intermediate gym, including air-conditioning
• Make health, safety and security improvements
• Repair and upgrade ceilings, walls, and floors.
• Renovate, repair, expand and/or upgrade the interior and/or exterior of existing
classrooms and school facilities, including infrastructure and landscaping
improvements.
• Replace existing wiring systems to meet current electrical and accessibility codes and
increased capacity.
• Install additional and/or replace outdated lighting systems with building code
compliant systems.
• Upgrade, expand, repair and/or equip science labs, multi-purpose rooms,
auditoriums, gymnasiums, libraries, and other school facilities.
• Acquire property
School Site Health, Safety and Security Projects
• Upgrade or replace buildings that do not meet current minimum building code
standards.
• Remove all dry rot and repair damage caused by dry rot.
• Replace/upgrade existing signage, clocks and fire protection systems.
• Install, repair, upgrade, or replace safety and security systems for students and
staff, including new fencing around the schools.
• Install energy efficient systems including “green” building projects and sustainable
building practices to promote energy-efficiency.
• Upgrade and repair play areas and play fields.
• Upgrade, repair, or expand school site parking, driveways, walkways, ground, and
utilities.
• Abate and remove hazardous materials identified prior or during construction.
• Repair, replace and/or upgrade paved surfaces, turf, and other grounds to eliminate
safety hazards and improve outside instructional areas.
District-Wide Wiring and Technology for Instructional Support and Effective
Learning Environment Projects
• Upgrade and expand campus-wide wireless systems and telecommunications,
internet, and network connections.
• Upgrade media, audio/visual equipment, and other technology for effective learning
environments, including smart boards.
• Upgrade and replace classroom equipment and instructional aides.
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 management, staff training expenses and a customary contingency for
unforeseen design and construction costs. In addition to the listed projects stated above,
the list also includes the acquisition of a variety of instructional, maintenance and
operational equipment, including the reduction or retirement of outstanding lease
obligations and interim funding incurred to advance fund projects from the list;
installation of signage and fencing; payment of the costs of preparation of all facility
planning, facility studies, assessment reviews, facility master plan preparation and
A-3
updates, environmental studies (including environmental investigation, remediation and
monitoring), design and construction documentation, and temporary housing of
dislocated District activities caused by construction projects. In addition to the projects
listed above, the repair and renovation of each of the existing school facilities may
include, but not be limited to, some or all of the following: renovation of student and
staff restrooms; repair and replacement of heating and ventilation systems; upgrade of
facilities for energy efficiencies; repair and replacement of worn-out and leaky roofs,
windows, walls, doors and drinking fountains; installation wiring and electrical systems
to safely accommodate computers, technology and other electrical devices and needs;
upgrades or construction of support facilities, including administrative, physical
education/athletic facilities and performing arts buildings and maintenance yards; repair
and replacement of fire alarms, emergency communications and security systems;
resurfacing or replacing of hard courts, turf and irrigation systems and campus
landscaping and play fields; expand parking; install interior and exterior painting and
floor covering; demolition; and construction of various forms of storage and support
spaces, upgrade classrooms, bleachers, kitchens, repair, upgrade and install interior and
exterior lighting systems; replace outdated security fences and security systems. The
upgrading of technology infrastructure includes, but is not limited to, computers, LCD
projectors, portable interface devices, servers, switches, routers, modules, sound
projection systems, laser printers, digital white boards, document projectors, upgrade
voice-over-IP, call manager and network security/firewall, wireless technology systems
and other miscellaneous equipment and software. The allocation of bond proceeds will
be affected by the District’s receipt of State matching funds and the final costs of each
project. In the absence of State matching funds, which the District will aggressively
pursue to reduce the District’s share of the costs of the projects, the District will not be
able to complete some of the projects listed above. The budget for each project is an
estimate and may be affected by factors beyond the District’s control. Some projects
throughout the District, such as gyms, fields and performing arts facilities, may be
undertaken as joint use projects in cooperation with other local public or non-profit
agencies. The final cost of each project will be determined as plans 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. 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.
B-1
EXHIBIT B
BOND MEASURE
(Abbreviated Form)
“To improve the quality of education; modernize/renovate outdated
classrooms, restrooms and school facilities; replace portables with permanent
classrooms; and upgrade agriculture career technical education facilities; shall
Durham Unified School District’s measure be adopted authorizing
$24,500,000 of bonds at legal rates, generating on average $1,400,000
annually as long as bonds are outstanding from levies of approximately 6
cents per $100 assessed value, with annual audits, independent citizens’
oversight, NO money for salaries and all funds benefiting Durham Schools?”
Bonds—YES ____ Bonds – NO _____
C-1
EXHIBIT C
TAX RATE STATEMENT
An election will be held in the Durham Unified School District (the “District”) on November
5, 2024, to authorize the sale of up to $24,500,000 million in bonds of the District to
finance school facilities as described in the measure. If such bonds are authorized and sold,
principal and interest on the bonds will be payable only from the proceeds of ad valorem tax
levies made upon the taxable property in the District. The following information is provided
in compliance with Sections 9400-9404 of the Elections Code of the State of California. Such
information is based upon the best estimates and projections presently available from
official sources, upon experience within the District, and other demonstrable factors.
Based upon the foregoing and projections of the District’s assessed valuation, the following
information is provided:
1. The best estimate of the average annual tax rate which would be required to be
levied to fund this bond issue over the entire duration of the bond debt service,
based on a projection of assessed valuations available at the time of filing of this
statement, is $56 per $100,000 of assessed valuation. The final fiscal year in
which the tax is anticipated to be collected is 2058-59.
2. The best estimate of the highest tax rate which would be required to be levied to
fund this bond issue, based on a projection of assessed valuations available at the
time of filing of this statement, is $60.00 per $100,000 of assessed valuation. It is
estimated that such rate would be levied in fiscal year 2025-26.
3. The best estimate of the total debt service, including the principal and interest,
that would be required to be repaid if all the bonds are issued and sold is
approximately $48,700,000 million.
Voters should note the estimated tax rate is based on the assessed value (not market
value) of taxable property on the County’s official tax rolls. In addition, taxpayers eligible
for a property tax exemption, such as the homeowner’s exemption, will be taxed at a lower
effective tax rate than described above. Property owners should consult their own property
tax bills and tax advisors to determine their property’s assessed value and any applicable
tax exemptions.
The attention of all voters is directed to the fact that the foregoing information is based
upon projections and estimates only, which amounts are not maximum amounts and are not
binding upon the District. The actual debt service, tax rates and the years in which they will
apply may vary from those used to provide the estimates set forth above, due to factors
such as variations in the timing of bond sales, the par amount of bonds sold and market
interest rates available at the time of each sale, actual assessed valuations over the term of
the bonds, and other factors. The date and amount of bonds sold at any given time will be
determined by the District based on the need for project funds and other considerations.
The actual interest rates at which the bonds will be sold will depend on conditions in the
bond market at the time of sale. Actual future assessed valuations will depend upon the
amount and value of taxable property within the District as determined by the County
Assessor in the annual assessment and the equalization process.
By: _______________________
John Bohannon, Superintendent
Durham Unified School District