Part 2: $1 Billion Dollar Bond for Capistrano Unified School District Facilities-

6) The District talks out of both sides of its mouth. On the one hand the District is saying that because of budget cuts during the great recession, CUSD has not had sufficient funding to maintain facilities or build new facilities. Yet, CUSD has given employees across the board compensation increases for the past four years. The State has chosen not to provide CUSD with adequate funding for CUSD students to achieve equality of educational opportunities because it would rather use our tax money to fund other programs and entitlements.

CUSD; like the State, made the choice to give across the board compensation increases for all employees for the past four consecutive years, rather than maintain adequate facilities for it's students.

CUSD is claiming that facilities needs are at emergency levels. Is it CUSD's position that very few of the 2009 facilities issues have been addressed or fixed due to a lack of funding- hence the justification of the $800 million + figure. That in itself is troubling because the 2009 plan contains $16,951,651.25 in Structural/Safety/Fire Life Safety/ADA issues. Those would be issues that should fall under Williams Legislation as "emergency" issues that must; by law, be fixed for the health and safety of students.

For 7 years CUSD has been fine with letting its students attend school in substandard facilities so long as employees could receive increased compensation packages.

Every taxpayer should read the following and listen to the Board Audio for themselves: See: Capistrano Unified School District Facilities Report- "16,000 plumbing work orders - 3 plumbers on staff"- Never any Williams Complaints? $22.6 million in employee compensation increases for 2016-17

Fact: During the great recession the State of California allowed districts to sweep all categorical funds, including deferred maintenance, so that those funds could be put into the general fund and used to maintain maximum employee compensation. It has been a state-wide plan to prevent public employees from any salary schedule reductions during the great recession. Public employees in collaboration with the State have drained every last dime from school district budgets to fund compensation for employees.

In 2012 employee compensation was projected to be over 100% of CUSD's budget. CUSD implemented an early retirement plan to reduce compensation expenses. This early retirement cost taxpayers an additional $10 million dollars over 5 years - money that could have been used for facilities maintenance.

Despite employee compensation representing over 90% of CUSD's budget since 2010;

Despite the fact that CUSD cut over $152 million from its budget since 2007

CUSD teacher's salary schedule has only been reduced by 1.2%, and that 1.2% was restored while CUSD was still balancing its budget with class size increases, instructional furlough days, cuts to programs and deferred maintenance.

Note:
The 1.2% salary schedule reduction was actually implemented as a result of the 2010 teachers union strike.

For 2014-15 all CUSD employees received a 3% compensation increase (2% salary schedule increase + a 1% off schedule collaboration payment)

For 2015-16 all CUSD employees received an 8.67% compensation increase (4% Salary schedule increase + a 4% off schedule collaboration payment)

The District has given substantial across the board employee compensation increases rather than spend money to ensure students would attend schools in clean, safe, facilities. CUSD chose to allow students to remain in sub-standard facilities for the past 7 years so that employees could be paid more.

CUSD's position has always been that maintaining maximum salary schedule is more important than providing students with reasonable class sizes, modern equipment and materials, and high quality buildings.

The lack of specificity in the bond documents will allow CUSD to once again drain facilities funds to pay employees more.


7) The 2009 plan was up-dated in 2013 to show that costs had escalated to $822 million? Lack of maintenance resulted in facilities costs increasing dramatically between 2009 and 2013.

In 2009, Deferred Maintenance was $7.6 million.

By 2013 that number climbed to $60.4 million.


8) CUSD has a long time history of being abusive to taxpayers and should not be trusted with a new revenue stream of $1.1 billion dollars.

CUSD has a long history of raiding its deferred maintenance monies for salaries & benefits while allowing its schools to fall into a state disrepair, e.g. Newhart, SCHS, Niguel Hills, DHHS, etc.

CUSD has also mishandled Mello Roos special taxes. CUSD's inability to properly account for the use of Mello-Roos taxes, misspending of Mello-Roos, along with the gross over taxation collecting far in excess of the amount to service the bond debt principal and interest of Mello-Roos bonds from all of its Community Facilities Districts it manages is proof CUSD should not be given more money.

See: Grand Jury Report Mello-Roos: Perpetual Debt Accumulation and Tax Assessment Obligation
http://www.ocgrandjury.org/pdfs/2014_2015_GJreport/Mello-Roos_Website.pdf

Talega Residents are already funding renovations at San Clemente High School and San Juan High Schools. CUSD is still including the cost of these renovations in their 1016 facility needs. Is it their intention to repay Mello Roos taxpayers for these "double" expenditures?

San Clemente High School Addition --- The construction documents have been completed and were submitted to DSA on March 3, 2016. It is anticipated that DSA will have completed their review and return the construction documents in August 2016. The Construction Department is currently scheduling work for this summer to make the necessary preparations for the new 24 Classroom Building.

The estimated funding expenditures from Talega CFD 90-21A is $1,150,000 and Talega CFD 90-2 is $6,500,000.

General Project Schedule:

• Schematic Design Phase: August 3, 2015 through November 12, 2015
• Design Development Phase: November 12, 2015 through December 18, 2015
• Construction Document Phase: December 21, 2015 through February 25, 2016
• Agency Approval Phase: February 26, 2016 through July 15, 2016
• Bidding Phase: July 15, 2016 through September 1, 2016
• Construction Administration Phase: September 2016 – June 2017

San Juan Hills High School Addition --- The construction documents for Phase I (parking lot adjustments) and Phase II (new building) have been submitted to DSA on March 3, 2016. The Phase I portion of the project was approved on March 3, 2016 and Phase II is expected to be approved in August 2016. With the approval of Phase I construction documents, the project will advertise for bid on March 10, 2016 and the project will take place over the summer.

The estimated funding expenditures from Talega CFD 90-21A $800,000 and Talega CFD 90-2 $1,000,000.

General Project Schedule Phase One:

• Schematic Design Phase: August 3, 2015 through November 12, 2015
• Design Development Phase: November 12, 2015 through December 18, 2015
• Construction Document Phase: December 21, 2015 through February 25, 2016
• Agency Approval Phase: OTC DSA appointment scheduled for March 3, 2016
• Bidding Phase: March 11, 2016 through May 1, 2016
• Construction Administration Phase: June 2016 - August 2017

General Project Schedule Phase Two:

• Schematic Design Phase: August 3, 2015 through November 12, 2015
• Design Development Phase: November 12, 2015 through December 18, 2015
• Construction Document Phase: December 21, 2015 through February 25, 2016
• Agency Approval Phase: February 26, 2016 through July 15, 2016
• Bidding Phase: July 15, 2016 through September 1, 2016
• Construction Administration Phase: September 2016 – June 2017