CUSD Trustees seem intent on coming up with a bond that is designed to include everyone except...

Tonight the CUSD Board of Trustees will vote to approve an $889 million dollar school facilities bond with a projected additional $200 million in matching State Funds bringing the total facilities money to $1.1 billion dollars. With fees, costs and interest taxpayers will spend $1.8 billion over a 25 year period.

Background:

On July 13, 2016 the Board approved resolution No 1617-02 declaring an intention to form School Facilities District No. 2 (SFID No. 2)

In an extremely rushed and very bizarre bond discussion CUSD Trustees seemed very intent on coming up with a bond that would be designed to include everyone except the richest and most powerful landowners in south Orange County.

It should be noted that SFID No 2 was chosen over a General Obligation Bond specifically for the purpose of excluding Rancho Mission Viejo.

Was the reason for excluding Rancho Mission Viejo from the Bond the result of a Board seeking to separate current facilities needs from future facilities needs, or was it the intent of the Board to exclude Rancho Mission Viejo from the Bond because, as one of the richest and most powerful corporations in south Orange County they have the financial power and political clout to defeat the the bond measure?

First Esencia School is a current $7 million dollar need, not a future need.

Second-

The Board of Trustees wanted to carve out Laguna Woods in addition to Rancho Mission Viejo. It is obvious that the motivation was political. Laguna Woods has 18,000 voters, all over the age of 55 with few children. As older voters with few children, they would #1 show up to vote, and #2 oppose any school facilities bond.

I have a problem with a District who would seek to carve out certain areas for the purpose of rigging the vote on something as important as a $1.8 billion dollar bond measure.

I would like to use the following as an example: The Talega Gallery is a development that is limited to 55 and over. Trustee John Alpay who recommended carving out Laguna Woods never mentioned carving out any other 55+ neighborhood. This development is in Trustee Alpay's area. You would think he would have been the first to stand and say that all 55 + neighborhoods should be carved out, especially the Talega Gallery because they already pay Mello Roos for CUSD. But the intent was to carve out the 18,000 votes in Laguna Woods, not the 283 in Talega Gallery.

John Alpay was a resident of Talgea, and is currently the Trustee for Talega and most of San Clemente. In a recent Board meeting John Alpay acknowledged that he has moved out of San Clemente. I would question why John Alpay is not fighting to carve out all Talega Mello Roos homes since this will be a third tax for many residents. Maybe it no longer matters to him, since he no longer lives in a Talega Mello Roos area. Maybe Trustee Alpay is no longer qualified to sit on the Board representing San Clemente residents; especially those in Talega? Maybe Trustee Alpay should step down.

The map provided for the Board presentation created a lot of confusing discussion about boundaries.

http://capousd.ca.schoolloop.com/file/1218998819331/1218998864154/1387806447816110666.pdf at page 38

Board Audio starting at 22:47:

http://cusd.capousd.org/cusdweb/boardaudio/7-13-16/CUSDBoardMeeting.July.13.2016.mp3

at 23:07 Difference between General Obligation Bond vs SFID

• General Obligation Bond
• SFID which excludes the Ranch
• SFID for each City/RBoundary Area

General Obligation Bond:

• $889 Bond Measure
• $43 per $100 home value
• Implementation 10 years
• Includes every school in the District.
• Mitigation agreement will not allow CUSD to spend money on Estancia Schoo

at 24:20 SFID Entire CUSD Boundary Excluding Ranch Mission Viejo

• Rancho Mission Viejo represents 1% of School District Boundaries
• This option would be missing out on growth that occurs in Rancho Mission Viejo
• This SFID would include every school in CUSD except Esencia School and any future schools needed to accommodate the Rancho Mission Viejo Development. The following is a Board presentation re: Mitigation Agreements January 28 BOT Meeting page 5
  http://capousd.ca.schoolloop.com/file/1229223560406/1218998864154/4378738717313669779.pdf that need is:

CUSD should know that it needs to include funding for Rancho Mission Viejo Schools because they are approaching the 3,000th home sold. Ignoring the number of students coming from development of Rancho Mission Viejo is placing an extreme hardship on neighboring schools that already suffer from over crowded classrooms and a lack of facility space.

at 26:00 SFID Just Rancho Mission Viejo

• Bond Amount $40 million for Esencia + 3 future schools
• $7 million short fall currently on Esencia

at 27:00 SFID by Regional Areas

at 27:32 A Supplement (not in the Board Agenda documents in advance of the meeting is handed out) Copies in the back for members of the public regarding carving out areas. Isn't adding this document at the meeting a Brown Act Violation?

at 29:52 Next Steps GO Bond

at 30:39 Next Steps SFID now is it - we can make minor adjustment

August 10th Form SFID's and putting Bond on the ballot

at 32:29 Blue Cards

at 32:49 Laura Fergusion - Resident of Talega - This will be a Triple Tax on Talega Residents - Formation Documents preclude any Bond on top of Mello Roos. Different rules for Rancho Mission Viejo. CUSD has not managed its finances - $1 billion dollar slush fund

at 35:54 Greg Young - Parent Dana Hills - 19th year as a Science Teacher - Member of the Community Committee for School Facilities. Supports a general obligation bond - best for equity in the district.

at 38:11 Dawn Urbanek - Taxpayer - Oppose the Bond for 10 reasons (only had time for a few)

• It is the State's responsibility to fund public education facilities. The State's 2016 5-year infrastructure plan has -0- dollars allocated to K-12 facilities. It has $51 billion of the $55 billion allocated to "transportation" aka High Speed Rail. The Constitution requires CA to pay for K-12 facilities before High Speed Rail.
• LCFF limits K-12 funding to 2007-08 levels not to be reached until 2021. CUSD Per Pupil Funding has been flat for 14 years by 2021 you can't educate any child for that amount of money.
• Bond amount unreasonable - based on a 2009-10 Master Facilities Plan + wish list from every school site that was never voted on or approved by the Board. CUSD is rushing the Bond Process to be able to get $200 million in matching funds from the State. Be realistic and put up a $200 million dollar bond with matching funds of $200 million.
• Taxpayers could see layers of new taxes: State facilities Bond- Community College Facilities Bond - County Board of Education Facilities Bond and the CUSD bond
• CUSD has given employees across the Board Compensation Increases for past 4 years but did not have money to maintain facilities. CUSD mis-manages the funds it does have- why would taxpayers give CUSD $1.8 billion.

at 41:35 Kei Kitcher parent Ladera Ranch and member of the Community Committee for School Facilities

• SFID - GO Bond is reckless and irresponsible.
• Petition opposing Go Bond.
• CUSD survey does not show the depth of opposition to a GO Bond.
• Excluding the Rancho Mission Viejo and Laguna Woods so that the strongest opponents to a bond are not affected by the vote is unethical and morally wrong.
• Why are CFD taxpayers not excluded.
• We will defeat taxation without representation.

at 44:51 Michelle Flemming parent 25 year resident of Aliso Viejo, taxpayer in Melo Roos area. Supports single GO Bond that serves every student in the District.

• Facilities needs are real
• Funding System is inadequate
• Single GO Bond would be equitable for every student.
• Transition from unequal to equal will be difficult
• Stop blaming parents for a lack of funding for schools.
• Capital Funding pits communities against each other.
• Vote to place a GO Bond on the November Balott

at 47:33 Board Comments and Questions

at 47:45 Trustee Guila Jones asks to clarify procedure for voting - Board discussion re: all items

at 50:50 How did CUSD identify what the Bond money would be spent on? Board Discussion

• Bond measure will include a facilities project list. The CUSD web site is being up-dated daily which shows each school site and a highlight of projects to be done and expected cost.

at 55:15 Trustee Martha McNicholas re: GO Bond or SFID separating Rancho Mission Viejo.

Difference between SFID 2 + SFID 3 and approving SFID 2 only.

SFID 2 is a $889 million dollar Bond $43 per $100,000 that excludes RanchoMission Viejo

SFID 3 is a $40 million dollar Bond that include Ranch Mission Viejo Only $43 per $100,000. CUSD needs $7 million to start to fund Esencia School. The rest would only be issued as needed.

If you combine SFID 1 and 2 Everyone in the District is paying for schools. SFID 2 pays for every school except those in Rancho Mission Viejo. SFID 3 pays for school is Ranch Mission Viejo.

at 1:01:00 Trustee Jim Reardon brings up the issue of timing of Bond issue dates.

at 1:03:02 Discussion timing and regional planning Old regions vs new regions.

at 1:05:31 Matching funds - first year $178 million + matching funds.

at 1:06:00 Bond amount and assessed valuation

at 1:08:20 Move to next agenda items.

at 2:21:00 Vote 6 to 1 on Agenda Item #2 only - Rancho Mission Viejo is excluded from the SFID.

at 2:21:30 Discussion SFID #3 Why vote on this - current needs vs future needs. Motion to table this item. Do it now to finish Esencia. Table all items except #11.

at 2:28:11 Blue Card regarding San Clemente SFID Agenda Item #11 - Dawn Urbanek

• Clarify $889 million + Matching Funds $200 million + interest + interest = $1.89 billion.

2:31:00 Trustee Gilla Jones quote of the night: "A Million Dollar home is only a $433 per year increase".

Map: http://www.ranchoortega.com/blog/wp-content/uploads/2013/11/RanchPlanBubbles.jpg