RESOLUTION NO. 01-02-014

RESOLUTION OF THE BOARD OF TRUSTEES OF THE EUREKA UNIFIED SCHOOL DISTRICT ORDERING SCHOOL FACILITIES IMPROVEMENT DISTRICT BOND ELECTION IN AND FOR SCHOOL FACILITIES IMPROVEMENT DISTRICT NO. 1, AND AUTHORIZING NECESSARY ACTIONS IN CONNECTION THEREWITH

____________________

WHEREAS, this Board of Trustees (the "Board") of the Eureka Unified School District (the "District"), of the County of Humboldt, California, by its Resolution No. 00-01-024, adopted on November 15, 2000, has ordered School Facilities Improvement District No. 1 to be formed comprising a specified area of the District corresponding to the former Eureka City Elementary School District, as shown on the map of School Facilities Improvement District No. 1 ("SFID No. 1") on file with the Clerk of the Board, in order to be able to conduct therein a general obligation bond election to provide needed financing for the construction, improvement, expansion, rehabilitation and renovation of public elementary school facilities for the benefit of the land located within SFID No. 1; and

WHEREAS, the Board is authorized generally by Sections 5304 and 5322 of the Education Code to order elections for and within the District and to designate the specifications thereof, including for the purpose of submitting to the electors the question of whether bonds of the District shall be issued and sold pursuant to Education Code Sections 15330 and following; and

WHEREAS, pursuant to Section 18 of Article XVI and Section 1 of Article XIII A of the California Constitution, and Section 15266 of the Education Code, school districts may seek approval of general obligation bonds and levy an ad valorem tax to repay those bonds upon a 55% vote of those voting on a proposition for the purpose, provided certain accountability measures are included in the proposition; and

WHEREAS, effective January 1, 2002, pursuant to Section 15348(b) of the Education Code, general obligation bonds of a school facilities improvement district may be approved upon a 55% vote of those voting on a proposition for the purpose; and

WHEREAS, the Board deems it necessary and advisable to submit such a bond proposition to the electors of the School Facilities Improvement District No. 1 to be approved by 55% of the votes cast; and

WHEREAS, such a bond election must be conducted concurrent with a statewide primary election, general election, or special election, or at a regularly scheduled local election, as required by Section 15266 of the Education Code; and

WHEREAS, on March 5, 2002, a statewide primary election is scheduled to occur throughout the District; 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 $60 per year per $100,000 of assessed valuation of taxable property; and

WHEREAS, it is desirable that the election be consolidated with such other election or elections as may be held on the same day in the same territory or in territory that is in part the same; and

WHEREAS, Section 9400 and following of the Elections Code requires that a tax rate statement be contained in all official publications and ballot pamphlets prepared, sponsored or published by the District which relate to the election; and

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

WHEREAS, if the project to be funded by the bonds will require State matching funds for any phase, the sample ballot must contain a statement, in form prescribed by law, advising the voters of that fact, and the Board finds that completion of all or a portion of certain of the projects planned to be financed from the bonds will require State matching funds not yet received by the District;

NOW, THEREFORE, be it resolved, determined and ordered by the Board of Trustees of the Eureka Unified School District as follows:

Section 1. Findings: The Board hereby finds the foregoing recitals to be true and correct in all respects.

Section 2. Specifications of Election Order: Pursuant to Education Code Sections 5304, 5322, 15327, and 15340 and following, and applicable provisions of the Education Code and Elections Code, a special election is hereby ordered to be held within the boundaries of School Facilities Improvement District No. 1 ("SFID No. 1") of the Eureka Unified School District on March 5, 2002, for the purpose of submitting to the registered voters of SFID No. 1 the following proposition:

EUREKA ELEMENTARY SCHOOLS IMPROVEMENT BOND OF 2002

This Proposition may be known and referred to as the "Eureka Elementary Schools Improvement Bond of 2002" or as "Measure ____". [designation to be assigned by County Registrar of Voters]

FINDINGS

The Eureka Unified School District (also known as "Eureka City Schools") is committed to offering a personalized education with a challenging curriculum. By providing the highest quality education possible, Eureka City Schools has enhanced the quality of life for the Eureka community.

All of Eureka City Schools' elementary schools are more than 45 years old.

In order to maintain our schools as effective places for teaching and learning for the future, and to be able to retain and attract students and quality staff to our programs, major renovations and repair work is needed to bring each of our elementary school campuses to current standards of safety, and to ensure that they will remain standing for future generations.

The Board of Trustees of the Eureka Unified School District has prepared a facilities plan and identified repair and rehabilitation needs that are more than the District is able to fund from currently available sources or annual revenues.

The Board of Trustees has created a special School Facilities Improvement District serving the territory of the former Eureka City Elementary School District, to ensure that only voters and taxpayers within this area of the District may decide whether or not to improve our children’s elementary schools.

Eureka City Schools has sought and continues to seek all available outside sources of funding for improving our school buildings, including local, state, and federal grants, and matching funds. The District has received State grant funds and has used these grants to complete critical projects, but outside money will not be sufficient to provide all of the District's facilities needs.

It is necessary to seek voter approval of a bond measure in order to provide the local funding share of identified school facility repairs and modernization projects.

BOND AUTHORIZATION

By approval of this proposition by at least 55% of the registered voters voting on the proposition, the Eureka Unified School District shall be authorized to issue and sell bonds of School Facilities Improvement District No. 1 of up to $10,585,000 in aggregate principal amount to provide financing for the specific elementary school facilities projects listed in the Bond Project List attached hereto as Exhibit A, and in order to qualify to receive State matching grant funds, subject to all of the accountability requirements specified below.

ACCOUNTABILITY REQUIREMENTS

The provisions in this section are specifically included in this proposition in order that the voters and taxpayers of Eureka may be assured that their money will be spent wisely to address specific elementary schools facilities needs of the Eureka Unified School 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 Education Code Sections 15264 and following).

Evaluation of Needs. The Board of Trustees has prepared an updated facilities plan in order to evaluate and address all of the elementary schools facilities needs of the Eureka Unified School District at each campus and facility, and to determine which projects to finance from a local bond at this time. The Board of Trustees hereby certifies that it has evaluated safety, class size reduction and information technology needs in developing the Bond Project List contained in Exhibit A.

Independent Citizens’ Oversight Committee. The Board of Trustees shall establish an independent Citizens’Oversight Committee (pursuant to Education Code Section 15278 and following), to ensure bond proceeds are expended only for the school facilities projects listed in Exhibit A. The committee shall be established within 60 days of the date when the results of the election appear in the minutes of the Board of Trustees.

Performance Audits. The Board of Trustees shall conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the school facilities projects listed in Exhibit A.

Financial Audits. The Board of Trustees shall conduct an annual, independent financial audit of the bond proceeds until all of those proceeds have been spent for the school facilities projects listed in Exhibit A.

Special Bond Proceeds Account; Annual Report to Board. Upon approval of this proposition and the sale of any bonds approved, the Board of Trustees 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 Chief Business Official of the District shall cause a report to be filed with the Board no later than January 1 of each year, commencing January 1, 2003, stating (1) the amount of bond proceeds received and expended in that year, and (2) the status of any project funded or to be funded from bond proceeds. The report may relate to the calendar year, fiscal year, or other appropriate annual period as the Superintendent shall determine, and may be incorporated into the annual budget, audit, or other appropriate routine report to the Board.

BOND PROJECT LIST

The Bond Project List attached to this resolution as Exhibit A shall be considered a part of the ballot proposition, and shall be reproduced in any official document required to contain the full statement of the bond proposition.

The Bond Project List, which is an integral part of this proposition, lists the specific projects the Eureka Unified School District proposes to finance with proceeds of the bonds. Listed repairs, rehabilitation projects and upgrades will be completed as needed at a particular school site. Each project is assumed to include its share of costs of the election and bond issuance, architectural, engineering, and similar planning costs, construction management, and a customary contingency for unforeseen design and construction costs. The final cost of each project will be determined as plans are finalized, construction bids are awarded, and projects are completed. Certain construction funds expected from non-bond sources, including State grant funds for eligible projects, have not yet been secured. Therefore the Board of Trustees cannot guarantee that the bonds will provide sufficient funds to allow completion of all listed projects.

FURTHER SPECIFICATIONS

No Administrator Salaries. Proceeds from the sale of bonds authorized by this proposition shall be used only for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities, and not for any other purpose, including teacher and administrator salaries and other school operating expenses.

Single Purpose. All of the purposes enumerated in this proposition shall be united and voted upon as one single proposition, pursuant to Education Code Sections 15340 and 15342, and all the enumerated purposes shall constitute the specific single purpose of the bonds, and proceeds of the bonds shall be spent only for such purpose, pursuant to Education Code Section 15302 and Government Code Section 53410.

Other Terms of the Bonds. When sold, the bonds shall bear interest at an annual rate not exceeding the statutory maximum, and that interest will be made payable at the time or times permitted by law. The bonds may be issued and sold in several series, and no bond shall be made to mature more than 40 years from the date borne by that bond.

Section 3. Abbreviation of Proposition: Pursuant to Section 13247 of the Election Code and Education Code Section 15122, the Board hereby directs the Registrar of Voters to use the following abbreviation of the bond proposition on the ballot:

In order to finance elementary school improvements and renovations within the former Eureka City Elementary School District, including upgrading electrical, heating, lighting, plumbing, and security systems; repairing roofs, windows and dry rot damage; improving pedestrian safety; constructing science classrooms and libraries; replacing deteriorating portables; and matching $5,000,000 in state modernization grants; shall the Eureka Unified School District issue $10,585,000 of bonds at legal interest rates, establish a citizens’ oversight committee, perform annual audits and spend no funds on administrators’ salaries?

Section 4. Voter Pamphlet: The Registrar of Voters is hereby requested to reprint Section 2 hereof (including Exhibit A hereto) in its entirety in the voter information pamphlet to be distributed to voters pursuant to Section 13307 of the Elections Code. In the event Section 1 is not reprinted in the voter information pamphlet in its entirety, the Registrar of Voters is hereby requested to print, immediately below the impartial analysis of the bond proposition, in no less than 10-point boldface type, a legend substantially as follows:

"The above statement is an impartial analysis of Measure ___. If you desire a copy of the measure, please call the Humboldt County Registrar of Voters at [enter phone umber] and a copy will be mailed at no cost to you."

Section 5. Required Vote: Pursuant Section 18 of Article XVI and Section 1 of Article XIII A of the State Constitution, the above proposition shall become effective upon the affirmative vote of at least 55% of those voters voting on the proposition.

Section 6. Request to County Officers to Conduct Election: The foregoing specifications of the Election Order are made pursuant to Education Code Section 5322, and the registrar of voters of the County of Humboldt (the "Registrar of Voters") is hereby requested to take all steps to call and hold the election in accordance with law and these specifications.

Section 7. Consolidation Request; Canvass; Election Costs: (a) Pursuant to Education Code Section 15344 and Part 3 (commencing with Section 10400) of Division 10 of the Elections Code, the Board of Supervisors of the County of Humboldt (the "Board of Supervisors") is requested to order consolidation of the school bond election called by this resolution with such other elections as may be held on the same day in the same territory or in territory that is in part the same.

(b) The Board of Supervisors is hereby authorized and requested to canvass the returns of the election pursuant to Section 10411 of the Elections Code.

(c) The Board of Trustees of the District hereby agrees to pay its share of election costs pursuant to Sections 5420 and 5421 of the Education Code.

Section 8. Delivery of Order of Election to County Officers: The Clerk of the Board of Trustees of the District is hereby directed to deliver, no later than December 7, 2001 (which date is not fewer than 88 days prior to the date set for the election), one copy of this Resolution to the Registrar of Voters of the County together with the Tax Rate Statement (attached hereto as Exhibit B), completed and signed by the Superintendent, and shall file a copy of this Resolution with the Clerk of the Board of Supervisors of the County.

Section 9. Ballot Arguments: The members of the Board are hereby authorized, but not directed, to prepare and file with the Registrar of Voters a ballot argument in favor of the proposition contained in Section 2 of this resolution, within the time established.

Section 10. State Matching Funds. The District hereby requests that the Registrar of Voters include the following statement in the ballot pamphlet, pursuant to Section 15122.5 of the Education Code:

"Approval of Measure ____ does not guarantee that the proposed project or projects in the Eureka Unified School District that are the subject of bonds under Measure ____ will be funded beyond the local revenues generated by Measure ____. The District’s proposal for the project or projects assumes the receipt of matching state funds, which could be subject to appropriation by the Legislature or approval of a statewide bond measure."

Section 11. Further Authorization: The members of the Board, the Superintendent, and the other officers of the District 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.

Section 12. Effective Date: This resolution shall take effect upon its adoption.

PASSED AND ADOPTED by the Board of Trustees of the Eureka Unified School District of the County of Humboldt this day, November 27, 2001, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

President of the Board of Trustees

Eureka Unified School District

Attest:

______________________________

Secretary of the Board of Trustees

SECRETARY’S CERTIFICATE I, James W. Scott, Secretary of the Eureka Unified School District, County of Humboldt, California, hereby certify as follows:

The attached is a full, true and correct copy of a resolution duly adopted at a special meeting of the Board of Trustees of the District duly and regularly held at the regular meeting place thereof on November 27, 2001, and entered in the minutes thereof, of which meeting all of the members of the Board of Trustees had due notice and at which a quorum thereof was present; and at that meeting the resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

At least 24 hours before the time of said meeting, a written notice and agenda of the meeting was mailed and received by or personally delivered to each member of the Board of Trustees not having waived notice thereof, and to each local newspaper of general circulation, radio, and television station requesting such notice in writing, and was posted in a location freely accessible to members of the public, and a brief description of the resolution appeared on said agenda.

I have carefully compared the same with the original minutes of the meeting on file and of record in my office. The resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect.

WITNESS my hand this ____ day of November, 2001.

____________________________________

Secretary of the Board of Trustees

Eureka Unified School District

EXHIBIT A

EUREKA UNIFIED SCHOOL DISTRICT

SCHOOL FACILITIES IMPROVEMENT DISTRICT NO. 1

ELEMENTARY SCHOOLS BOND PROJECT LIST

FACILITY NEEDS AT ALL SCHOOL SITES

Security, Health, and Safety Improvements including: Americans with Disabilities Act (ADA) improvements, including ramps and parking, pathways, restrooms, etc. as required by the State of California and federal law; Repair and renovate school grounds for safety, including sidewalks; Remove hazardous materials, including asbestos, lead based paint, and other hazardous materials; Install, repair, and replace fencing; Secure classroom computers; Upgrade exterior lighting for security and safety; Upgrade fire alarm systems.

Major Building Systems Improvements including: Upgrade electrical systems, including panels, circuit breakers, transformers, wiring, outlets, and clock systems; Upgrade heating and ventilation systems; Repair, replace or upgrade water, sewer, and storm drainage systems.

Structural Repairs and Rehabilitation including: Repair, upgrade, or replace windows as needed; Repair and paint exterior walls, replace exterior siding, if needed; Upgrade bathrooms; Upgrade kitchens; Repair and replace school building roofs, gutters, and downspouts; Repair dry rot, termite damage, and other needed structural repairs.

Construction and Renovation of Classroom and Instructional Facilities including: Install lowered (suspended T-bar) ceilings; Repair, upgrade, or install interior lighting; Patch, paint, and refinish (or replace as necessary) interior walls and wall coverings, floors and floor coverings, and ceilings; Repair and replace casework and countertops; Repair, replace, and upgrade information technology systems.

Site and Grounds Improvements including: Re-pave, patch or replace, and re-seal deficient parking lot and playground areas; Install, repair, and expand irrigation systems.

Furnishings and Equipment including: Install cabinets, drapes and blinds, casings, tackable wall surfaces and markerboards.

SPECIFIC SCHOOL SITE PROJECT NEEDS

ALICE BIRNEY ELEMENTARY SCHOOL (717 South Avenue)

Structural Repairs and Rehabilitation including: Construct new staff restroom at north end of administration wing; Repair or replace breezeway posts and roof; Remodel teachers workroom; Remodel main office.

Construction and Renovation of Classroom and Instructional Facilities including: Remodel existing classroom for science classroom; remove and replace two portables with units including sinks.

Site and Grounds Improvements including: Repair or replace retaining walls; Build a trash enclosure.

GRANT ELEMENTARY SCHOOL (3901 G Street)

Structural Repairs and Rehabilitation including: Renovate office; Remodel teachers workroom.

Construction and Renovation of Classroom and Instructional Facilities including: Remodel existing classroom for science classroom; Remove two portables and replace one portable with Kindergarten classroom; add sinks to existing portables.

Site and Grounds Improvements including: Install curbside walk, parking, and drop-off area; Build a trash enclosure.

JEFFERSON ELEMENTARY SCHOOL (1000 B Street)

Structural Repairs and Rehabilitation including: Remodel teachers workroom; Remodel main office; Remodel nurses’ room; Replace sump pump.

Construction and Renovation of Classroom and Instructional Facilities including: Remodel, renovate library for student support space; Construct Library/Media Center; Remove one portable and two trailers; Construct two new classrooms, one of which will be a science classroom (learning stations originally located in removed portable).

Site and Grounds Improvements including: Repair, replace retaining wall; Build a trash enclosure.

Administrative and Support Facilities including: Renovate teacher and staff workrooms and restrooms.

LAFAYETTE ELEMENTARY SCHOOL (3100 Park Street)

Major Building Systems Improvements including: Replace water supply piping, including installation of new piping for relocatable classrooms.

Structural Repairs and Rehabilitation including: Repair or replace breezeway posts and roofs; Remodel teachers workroom; Remodel main office; Remodel nurses’ room; Renovate kitchen and cafeteria floors.

Construction and Renovation of Classroom and Instructional Facilities including: Add library module; Remove three portables and one trailer and replace with four classroom modules, one of which will be a science classroom.

Site and Grounds Improvements including: Repair retaining wall.

LINCOLN ELEMENTARY SCHOOL (216 West Harris)

Major Building Systems Improvements including: Replace sump pump; Replace water supply piping, including installation of new piping for relocatable classrooms.

Structural Repairs and Rehabilitation including: Repair or replace breezeway posts and roofs.

Construction and Renovation of Classroom and Instructional Facilities including: Remodel existing science classroom; Remove and replace one relocatable classroom.

Site and Grounds Improvements including: Repair sidewalk and entry way on south side; Create a new loading zone; Create new parking area; Build a trash enclosure.

WASHINGTON ELEMENTARY SCHOOL (3322 Dolbeer Street)

Major Building Systems Improvements including: Replace water supply piping, including installation of new piping for relocatable classrooms.

Structural Repairs and Rehabilitation including: Switch teacher workroom with office and renovate and expand; Repair, replace breezeways.

Construction and Renovation of Classroom and Instructional Facilities including: Construct science classroom; Add additional classroom.

Site and Grounds Improvements including: Create a new loading zone; Create new parking area.

WORTHINGTON ELEMENTARY SCHOOL (3400 Erie Street)

Major Building Systems Improvements including: Replace water supply piping, including installation of new piping for relocatable classrooms.

Structural Repairs and Rehabilitation including: Repair or replace breezeway posts and roofs; Remodel teachers workroom; Repair or replace overhang and walkway; Remodel main office; Replace cafeteria floor.

Construction and Renovation of Classroom and Instructional Facilities including: Remodel existing classroom for science classroom; Remove two portables.

WINZLER CHILD CARE CENTER (717 Creighton Street)

Security, Health, and Safety Improvements including: Upgrade student and staff restrooms.

SCHOOL SUPPORT FACILITIES NEEDS

DISTRICT OFFICE (3200 Walford Avenue)

Security, Health, and Safety Improvements including: Construct ADA compliant restrooms; Improve parking area safety including ADA compliance.

CORPORATION YARD (642 West 14th Street)

Structural Repairs and Rehabilitation including: Repair or replace roofing; Underground storage tank clean up; Remove in-ground lifts.

EXHIBIT B

TAX RATE STATEMENT

An election will be held in School Facilities Improvement District No. 1 of the Eureka Unified School District (the "District") on March 5, 2002, to authorize the sale of up to $10,585,000 in bonds of School Facilities Improvement District No. 1 to finance school facilities as described in the proposition. If the bonds are approved, the District expects to sell the bonds in two series. Principal and interest on the bonds will be payable from the proceeds of tax levies made upon the taxable property located within School Facilities Improvement District No. 1. The following information is provided in compliance with Sections 9400-9404 of the Elections Code of the State of California.

1. The best estimate of the tax which would be required to be levied to fund this bond issue during the first fiscal year after the sale of the first series of bonds, based on estimated assessed valuations available at the time of filing of this statement, is two and a half cents per $100 ($25 per $100,000) of assessed valuation in fiscal year 2002-2003.

2. The best estimate of the tax rate which would be required to be levied to fund this bond issue during the first fiscal year after the sale of the last series of bonds, based on estimated assessed valuations available at the time of filing of this statement, is two and a half cents per $100 ($25 per $100,000) of assessed valuation in fiscal year 2004-2005.

3. The best estimate of the highest tax rate which would be required to be levied to fund this bond issue, based on estimated assessed valuations available at the time of filing of this statement, is two and a half cents per $100 ($25 per $100,000) of assessed valuation. The rate is expected to be the same in each year the bonds are outstanding.

Voters should note that estimated tax rate is based on the ASSESSED VALUE of taxable property on the County’s official tax rolls, not on the property’s market value. Property owners should consult their own property tax bills and tax advisors to determine their property’s assessed value and any applicable tax exemptions.

Attention of all voters is directed to the fact that the foregoing information is based upon the District’s projections and estimates only, which are not binding upon the District. 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 market interest rates at the time of each sale, and actual assessed valuations over the term of repayment of the bonds. The dates of sale and the amount of bonds sold at any given time will be determined by the District based on need for construction funds and other factors. The actual interest rates at which the bonds will be sold will depend on the bond market at the time of each sale. Actual future assessed valuation 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.

Dated: __________ 2001.

Superintendent

Eureka Unified School District