Voter Fraud?

After a contentious August 10th Board meeting where CUSD Trustees announced a law suit against the Mayor's of Mission Viejo Frank Ury and the Mayor of Rancho Santa Margarita Tony Beall for their objections to CUSD's proposed Facilities $2 billion dollar school facilities bond, CUSD makes the following representations to the Public:

Be cautious Public- watch out for words like "estimated not to exceed" or "anticipated to be" because here is the language that was actually voted on August 10th, 2016. Watch the statement regarding using the bond money for salaries- in this document it says teachers and administrators, in the actual language teachers are left out. The actual $889 billion that is the subject of the bond cannot be used for "Administrator" compensation, however there is no mention of how CUSD can use the $229 million in matching funds. The $889 million dollar bond resolution does not meet OC Taxpayer criteria because it is not specific as to what projects the money will fund- and CUSD has not defined any specifics on how the matching funds will be spent. When brought to the attention of the local City governments, and the peoples elected representatives, not only did every single Mayor sign a letter asking CUSD to postpone this bond until it could be properly vetted, but so did Representative Bill Brough, Diane Harkey State Board of Equalization, Patricia Bates, State Senator and OC Supervisor Lisa Bartlett. CUSD's response was to sue City Mayors. They even went so far as to threaten the Mayors of other Cities as they spoke against the bond at CUSD's August 17, 2016 Board meeting.

As an individual taxpayer I believe that CUSD's intentional misrepresentations constitute fraud. CUSD's Bond information continually state that employee compensation is "over 80% of CUSD's budget" when in fact employee compensation has been over 89% since 2007-08.

For more documentation see:

http://disclosurecusd.blogspot.com/2016/08/behind-closed-doors-with-no-public-in.html

Here is the actual resolution that was voted on:









It is not that anyone is opposed to a bond to improve facilities. The Public Concern is in CUSD's ability to keep it's promise to use tax funds efficiently and to ensure funds will be spent on improvements to facilities and not to continue to fund yearly increases in employee compensation.

* CUSD has increased employee compensation for the past four years straight totaling over $120 million dollars and did so knowing that CUSD students were being deprived of their fundamental right to opportunity to obtain high quality staff, program expansion and variety, beneficial teacher- pupil ratios and class sizes, modern equipment and materials, and high-quality buildings.

Every Parent and Taxpayer should listen to the Board Audio - the Disrespect - arrogance - and utter disregard for students and taxpayers is unbelievable. Taxpayers should call a criminal investigation into this matter.

Trustees have breached their fiduciary duty to students and taxpayers.

Source: Capistrano Unified School Board Meeting August 10, 2016 at page 61

http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/6795361639437705343.pdf

Board Audio: https://sites.google.com/a/capousd.org/board-audio-archive/

BLUE CARDS: Public Comments: at 16:16

at: 16:50:00 Dawn Urbanek - Learn from San Diego's $4.9 billion dollar bond- money was not used to improve facility infrastructure as stated in documents - used for air conditioning and other items- facilities are now worse - and on-going expenses have increased. Example- they spent $200 million on air conditioning which increased their electricity bills by $1.4 million per year and had no plan for funding this ongoing expense.

at 19:17:00 Debbie Flowers - Talega's Priority at SJH High School. Mello Roos taxpayers are being denied access to the schools they paid to attend. This bond would represent a triple tax on some residents to a District that denies their children access to the schools they paid to attend.

PUBLIC HEARING AGENDA ITEM #1:

at 22:00:00 Mike Hararian - Water at San Clemente High

AGENDA ITEM #5 Bond Resolution: at 44:40:00

BLUE CARDS 11 speakers:

at 46:50:00 Lori Davies - Mayor of Laguna Niguel speaking as a taxpayer, not a representative of the City. Oppose the Bond - no transparency. Trustee's have never mentioned the Bond in any ad hoc meetings to date. Why weren't the Cities, who are Government partners with CUSD , informed about a new $2 billion dollar tax?

at 49:41:00 Citizen Michelle Paso Campbell - In favor of Bond - served on the Facilities Community committee - worried about sub-standard facilities - was not happy with her City Councils position on the bond.

at 51:53:00 Craig Delahook, SC Resident and Board member of SC Pier speaking as a private citizen. Wants specific language regarding specific projects. The Bond language has no such specifics. There is no language detailing how money will be spent in each City. Asked Trustee McNicholas to honor her ballot statement of "No new Taxes" and vote no on the bond.

at 54:46:00 Pam Patterson, Mayor of San Juan Capistrano - Outraged by CUSD's announcement to sue two City Mayors. Every Mayor in CUSD boundaries has signed a letter opposing this Bond. There is a consensus that CUSD must specify how Bond money is to be spent.

Board President Amy Hannacek asks speakers to confirm if they are speaking as a City representative or a citizen implying that they will be added to the lawsuit.

at 58:40:00 Mike Munzing, Mayor of Aliso Viejo - this is not equitable to Cities who pay Mello Roos. 17 tax propositions on the November 2016 Ballot. Taxpayers will be paying on the sales price - (over $1 million for new buyers - $600 per year per household for those who just purchased a home- inequitable to residents who have lived in their homes a long time).

Board President Amy Hannacek cuts Mr. Munzing (A City Mayor) off at 1:02:17

at 1:02:20 Wendy Buckman, Mayor of Mission Viejo. This is a $2 billion dollar Bond when cost are included. Sloppy work. This is rushed and disrespectful to taxpayers and City leaders. The City discovered this through constituents and not CUSD. The biggest issue is parking and not one dollar is allocated to parking structures - shocking. Tax burden is concerning. OC tax does not support this bond because it does not meet their criteria. OC Tax asked you to remove their name from Bond 3 separate times. It was your responsibility to come to City Leaders. Some projects have been removed yet the bond amount has not been reduced.

at 105:28:00 Taxpayer Natalie Simmons Resident of Ladera Ranch for 15 years. At $6,000 per year for 15 years is $90,000 I paid to CUSD for schools. Now I will personally pay another Bond Fee. This is the wrong way to do this. If Ladera Ranch had a Mayor that could speak for them - they would say no. Bond is not equitable to people who have recently purchased a home.

at 1:07:40 Dawn Urbanek - I just want a Geometry Honors Class - How do you

at 1:10:00 Ex Superintendent Jack O'Connell now with Capital Advisors - now a CUSD Consultant. State Perspective. $9 Billion dollar State facilities Bond. (Jack O'Connell is the Great Guy who helped to write the provision that lowered the tax needed to pass a bond from 75% to 55%). If CUSD wants to share in the State matching funds they need to pass a bond.

at 1:13:46 Susan Stuart - Capital Advisors - Provision in State Bond good for CUSD. Direction they were going was to follow LCFF- meaning low income districts were going to receive money first. If CUSD gets their projects in now they will be grandfathered in before rules change.

at 1:16:40 Kevin Jordan - Capital Advisors - Tax Policy. Fundamental difference in Education Tax policy. Matching funds make your money go farther. Other Districts are happy to take your money if you don't step up to take advantage of this opportunity.

Listen very closely to Mr. Jordan's words at 1:19:50 Capital Advisor's is paid as a consultant by CUSD to represent CUSD's interests in Sacramento. Yet, here is Mr. Jordan (of Capital Advisors) is stating that he is very proud of the work that Capital Advisors has done to get the State Facilities Bond on the ballot. So CUSD has been funding Capital Advisors efforts to get the State Bond measure on the ballot rather than advocate for the funding our students are entitled to. That is a misuse of taxpayer funds. Maybe it is not in the best interest of CUSD to be taxed yet again for facilities, rather maybe it would be in CUSD's best interest to advocate for the funding that the State is constitutionally obligate to provide every student.

Any money paid to Capital Advisors to promote a bond to CUSD taxpayers constitutes a mis-use of Taxpayer funds under Attorney General Kamala Harris's January 26, 2016 opinion. https://oag.ca.gov/system/files/opinions/pdfs/13-304.pdf

Capital Advisor has an obvious conflict of interest. Money paid to Capital Advisors is money that should have been spent to fix and maintain facilities, reduce class sizes and restore instructional time and programs. CUSD has mis-used taxpayer funds and should be prosecuted for their illegal acts and that money should be restored to CUSD students and taxpayers.

at 1:20:27 Judy Bullockus - Resident of Mission Viejo 23 years - 2 kids in CUSD. She has sat in on Mission Viejo City Council meeting as well as CUSD meetings. The lack of transparency is astonishing. How dare CUSD sue Mission Viejo. I was at the Mission Viejo City Council meeting and the City Attorney William Curley said it was well within the City's power to spend City taxpayer money to represent Mission Viejo's opposition to this bond. How dare CUSD sue Mission Viejo for misuse of taxpayer funds. CUSD Trustees have talked about how to campagne for this bond in public meetings. CUSD vetted questions and tested questions to get the response that they wanted. Mission Viejo has #36 million waiting to be spent on Mission Viejo schools.

President Amy Hannacek cuts Ms. Bullocks off at 3:00 minutes.

at 1:24:40 Trustee Pritchard moves to approve the resolution without discussion. Trustee McNicholas seconds without discussion.

at 1:24:34 Trustee Reardon. Legal questions of new matters speaking to the question of Mello Roos Districts. If Mello Roos Districts cannot be carved out without cost analysis being presented to the Board. That was never done.

at 1:27:30 Janet Mueller - legal Counsel - responds and a discussion follows.

at 1:40:10 Trustee Jim Reardon - Credit Rating on Mello Roos areas.

at 1:41:16 Trustee Hatton - we are not piling debt on - we are giving the people the right to vote. Consultant responds- we are adding 4 cents and it will not affect credit rating.

at 1:14:28 Trustee Reardon - Documents are not consistent - $41- $42 - limit $60. How high can assessment if interest rates double?

at 1:46:00 Trustee McNicholas - she has been personally attacked regarding her ballot statement.

at 1:54:30 Trustee Hatton Hodson - Our focus is students- the Cities Focus should focus on the economy. The Cities are bullying us.

at 1:56:28 Trustee Gary Pritchard - We should call the vote no one is going to change their mind.

at 1:59:08 Trustee Alpay - Comments on Pam Patterson, Mayor of San Juan Capistrano. Trustees are not employees - we are servants. Mayors comments. Why didn't the Mayors come to CUSD.

What is the status of OCTax?

at 1:59:14 We have adjusted the resolution to meet OC Taxes needs. Has the OCTax e-mail approving the resolution been provided to Trustees?

at 2:01:00 Trustee Reardon USD carved out the Ranch. Now we are in a war with Cities rather than working with Cities. Disagree with CUSD policy that ignors City government.

at 2:03:10 Trustee Hannacek responds.

at 2:04:08 Is the OCTax e-mail ready?

at 2:04:30 Trustee Jones - There are significant reasons why we chose not to do a general obligation bond.

at 2:06:19 OCTax in the current form July 25, 2016 the resolution meets the criteria but they are not endorsing the bond.

Trustee Jones continues. CUSD is spending a lot of money from General fund to do basic repairs and maintenance. If we could stop spending money on maintenance, we would have more for our students.

at 2:10:46 Trustee Alpay calls out Councilman Windy Buckman- we do have OC Tax approval. you have egg on your face.

at 2:11:20 Roll Call Vote 6 to 1 Jim Reardon No

AGENDA ITEM #6: at 2:12:00

2:14:30 John Alpay stops the meeting to announce that he sees a mad rush to the back to write blue cards. Make sure we follow policy regarding hearing any new blue cards.

at 2:16:01 Stephanie Winsted, resident Laguna Niguel, re: best practices. Estate Planning Attorney. Trustees have a fiduciary duty. You must be transparent and have open and honest dialogue. CUSD has a history of mis-trust. CUSD should have opened the dialogue with the Cities.

at 2:16:12 Judy Heidle, resident of San Clemente, supports bond measure.

at 2:21:16 Linda Brastle, resident of San Clemente, Health Care. When she read the letter from City Mayors she took a time out. Have the Cities not been aware of the need for up-graded facilities. What were the Mayors thinking when they signed the letter? What is the Mayor agenda - selling District property to developers. Does Irvine care more about their students than CUSD. It would be irresponsible not to allow taxpayers to vote on this bond.

at 2:24:32 Mrs Spreg Resident Ladera Ranch, I feel piled on. Ladera Ranch has a 2% Mello Roos and we paid that to ensure our schools are not run down and decrepit. CUSD needs to be a good stewart of taxpayer money. Who is going to pay for CUSD's frivolous law suits against two respected Mayors.

at 2:27:08 Sharon Campbell, you could have done this without opposition. CUSD was rushed into a decision to try and get matching funds. The Governor does not support the $9 billion State facilities bond because he knows it is all going to go to LA Unified. CUSD did not get matching funds under Measure A and you will not get it now. Be transparent - $60 per $100,000.00 (not $43 per $100,000) in accessed value, total re-payment is $189 billion over 35 years not 25 years. In 15 years you are going to need another bond. On June 8, 2016 Trustee McNicholas you yourself called the 2009 masters facility plan a wish list. You do not start with a 2009 wish list and add escalators. You do a new facilities master plan. If you really want this to be up to the voters tell your superintendent to stop sending district wide e-mails to parents to try and sway voters.

at 2:30:01 Mr. Hodson - (Trustee Hatton- Hodson's husband) - Despite of Influx of cash in California - the passage of Prop 30 and Lottery money, California is now 36th in the nation in per pupil funding. $35 per month to pay for a bond is nothing. Support the bond.

at 2:32:42 Laura Ferguson - Disappointed in CUSD Board threatening to sue City Mayors. When she discovered CUSD's gross overcharging of Mello Roos Taxes she contacted the State Advisory Board and asked for guidance. They said to contact the City Council and the DA is fraud was discovered. She formed a citizens group to fight the over taxation of Mello Roos Districts. CUSD hired layers and consultants to fight residents. Trustee Alpay was no help. She requested that CUSD Trustee Alpay withhold his vote on the Bond and step down because he is in violation of Board Policy regarding residency. he has moved out of San Clemente to San Juan Capistrano. CUSD won't disclose the questions used in the pole. CUSD used tax payer dollars for this pole.

TRUSTEE COMMENTS:

at 2:35:54 Trustee John Alpay - I have a lease in Talega and still reside in San Clemente despite the fact that I purchased a home in San Juan Capistrano.

at 2:36:58 Trustee Pritchard - Motion to adopt the resolution.

at 2:37:30 Trustee Hatton-Hodson seconds the motion. Wants to support Trustee McNicholas decision to support the bond.

at 2:38:54 Trustee Jim Reardon page 4 of resolution OCTax Criteria: Want to draw attention to G. This item requires CUSD to set aside $3.5 million per year in General fund money for facilities maintenance. Are Trustees aware that $3.5 million in General fund money is needed every year to pass this bond? If not then we will need to increase class sizes or lay off teachers. Is that money currently in our budget?

http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/6795361639437705343.pdf at page 64

at 2:40:02 Clark Hampton responds yes- it is in the deferred maintenance fund.

at 2:40:12 Trustee Reardon - excuse me Clark - isn't deferred maintenance Item I? G is new money.

at 2:40:12 Clark Hampton- I is for economic uncertainties.

at 2:40:16 H?

at 2:40:38 Clark Hampton - three different funds:

• Deferred Maintenance (G)
• Routine Annual Maintenance (H)
• Economic Uncertainties (I)

at 2:40:03 Trustee Reardon - Aren't we restricted to a 4% Reserve?

at 2:41:00 Clark Hampton - that has not taken effect yet.

at 2:41:29 Trustee Reardon - when it is triggered won't we be out of compliance? I am seeing-

• 2% on H
• 2% - 3% on I and
• $3.5 million per year on G

Believe it or not- I went back to finish the article and the Board Audio from August 17th has been removed: