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LWV League of Women Voters of California Education Fund
Smart Voter
San Mateo County, CA June 6, 2006 Election
Measure U
Bond Measure
Menlo Park City Elementary School District

Bond Measure - Majority Approval Required

Pass: 4,936 / 70.6% Yes votes ...... 2,057 / 29.4% No votes

See Also: Index of all Measures

Results as of Jul 17 11:42am, 100.0% of Precincts Reporting (26/26)
36.8% Voter Turnout (129,074/350,305)
Information shown below: Impartial Analysis | Arguments | Tax Rate Statement | Full Text

To replace portable classrooms, provide adequate additional classroom space to avoid overcrowding and to enhance student learning and safety by building, modernizing, renovating, and acquiring school buildings and facilities at each of the District's school sites as indicated in the Bond Project List; shall the Menlo Park City School District issue $91.1 million of bonds at legal interest rates, appoint a volunteer Citizens' Oversight Committee, perform annual audits, and use no bond money for administrative salaries?

Impartial Analysis
Education Code section 15100 authorizes a school district to issue bonds for specified purposes. However, the voters must first approve the issuance of the bonds at an election. Education Code section 15266 provides the measure passes if 55% of those voting on the measure vote for the measure. Certain accountability requirements must be included in the measure.

The Board of Trustees of the Menlo Park City School District has proposed this measure which would authorize the District to issue bonds in an amount not to exceed $91.1 million. The bonds will have an interest rate not exceeding the legal maximum and will mature in no more than 35 years.

Article XIIIA, Section 1(b)(3)(B) of the California Constitution requires that the District list the specific school facilities projects to be funded from the bond revenue and certify that the Board has evaluated safety, class size reduction, and information technology needs in the development of that list. The District's "Bond Project List" for the proposed bond is attached to the full text of the measure and can be generally described as follows: construction, furnishing, equipping school buildings such as, classrooms, music, science and art labs, libraries, offices and an educational resource center; abatement of asbestos and lead; energy conservation measures; improvement of disability access, landscaping, utilities, irrigation, drainage, sewer and gas lines; installation of covered walkways; and repaving.

The measure requires the District to take certain steps to account for the proceeds from the sale of the bonds as set forth in Article XIIIA, Section 1(b)(3) of the California Constitution and Education Code sections 15272 et seq. The District must appoint a citizens' oversight committee and conduct annual independent performance and financial audits to assure that funds are spent only on the listed school and classroom improvements and for no other purposes.

A "yes" vote on this measure would authorize the Menlo Park City School District to issue bonds in an amount not to exceed $91.1 million for: projects including construction, furnishing, equipping school buildings such as, classrooms, music, science and art labs, libraries, offices and an educational resource center; abatement of asbestos and lead; energy conservation measures; improvement of disability access, landscaping, utilities, irrigation, drainage, sewer and gas lines; installation of covered walkways; and repaving.

A "no" vote would preclude Menlo Park City School District from issuing bonds of up to $91.1 million.

This measure passes if 55% of those voting on the measure vote "yes."

 
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Arguments For Measure U Arguments Against Measure U
The schools in the Menlo Park City Elementary School District face an immediate need for additional, permanent classrooms. The District must also continue to upgrade existing school facilities to ensure student safety and keep pace with projected increases in enrollment.

Measure U will raise the funds to address these critical needs at Laurel, Encinal, Oak Knoll and Hillview Schools.

The facts are clear:

  • To accommodate current enrollment, the District has leased 40 portable classrooms. Not only are these temporary facilities substandard, they are encroaching upon playground space and draining District operating funds.

  • Two independently produced demographic studies conclude that District enrollment will increase by 15-20% over the next decade.

  • To avoid overcrowding and provide adequate classrooms for students, the District needs to phase out existing portables and build approximately 60 new classrooms. It also needs to expand already constrained multi-purpose facilities.

  • Student drop-off and pick-up areas at each school must be redesigned to improve safety and reduce traffic impact on surrounding neighbors.

  • Each District school is over 50 years old. In 1995, our community began the process of renovating them. With Measure U funds, the District will continue to upgrade the infrastructure at each school.

Without approval of Measure U, the district will be forced to add even more portable classrooms at each school. Hundreds of our students will be housed in temporary classrooms and playground space for children will be far below state recommendations.

The cost of Measure U is reasonable. If approved, this bond will cost homeowners an annual average of $28 per $100,000 of assessed value.

To find out more about Measure U, go to: http://www.BuildForFuture.org.

Please join us in voting YES on Measure U. Remember, a quality education is each generation's gift--and responsibility-- to the next generation of students.

/s/ James K. MacKenzie March 14, 2006 Menlo-Atherton High School Teacher

/s/ Linda R. Meier March 12, 2006 Community Volunteer

/s/ Charles R. Schwab March 14, 2006 Business Executive

/s/ Charlot N. Singleton March 14, 2006 Community Volunteer

/s/ Lucile Spurlock March 12, 2006 Community Volunteer

Rebuttal to Arguments For
ARGUMENTS IN SUPPORT OF OR IN OPPOSITION TO THE PROPOSED LAWS ARE THE OPINIONS OF THE AUTHORS Reasonable???

A billionaire proclaims "The cost of Measure U is reasonable."

Does $91.1 million for 60 classrooms--$1.52 million per classroom-- sound reasonable to you?

--Including interest, that's $3.23 million per new classroom!

The Sensible Alternative:

School construction costs shouldn't greatly exceed $192,000 per classroom (960 sf @ $200/sf, including a share of common spaces).

If the District allocated 9% of General Fund revenue to building renewal, it could replace roughly one-tenth of its facilities (i.e. 9 classrooms plus ancillary spaces) every year--without any new debt, taxes, or interest charges.

If they want more classrooms, or luxury-grade $300/sf construction, they should use classrooms for 15 years, or budget more than 9% for renewal.

Trustworthiness Issues:

The District's outstanding $22 million bond costs homeowners $21 per $100,000 of assessed value. Although the proposed bond would be four times larger, proponents claim it would cost just $28 per $100,000. Fishy...

If proponents' allegations of "substandard" and "50 year old" facilities are true--just 10 years after spending $22 million to remodel the schools-- why trust them with another giant bond?

They say enrollment will increase significantly, but not why. If the City approves high-density housing, they should foot the school bill with impact fees--not shift costs to other taxpayers by using bonds.

No Thanks--

Debt is not a "gift" to the next generation. It is a burdensome legacy.

/s/ John J. "Jack" Hickey March 23, 2006 Healthcare District Trustee

/s/ Kennita Watson March 24, 2006 Board of Equalization Candidate

/s/ Christopher VA Schmidt March 27, 2006 Secretary, Libertarian Party of San Mateo County

Are they kidding?

The District remodeled its facilities only 10 years ago, using a $22,000,000 bond--at a cost of $523,000 per classroom of 22.6 students ($246,000 principal + $277,000 interest, estimated at 4.5%), which taxpayers will be paying for decades to come.

Now they want to borrow $91.1 million more, increasing indebtedness to $113.1 million. Adding interest, that's a total borrowing cost of $240 million--$119,000 per student--or $2.7 million per classroom.

Outrageous!

Then and now, borrowing is unnecessary. The District is rolling in revenue.

Richest District:

The Menlo Park City School District spent more money per student than any of the 180 comparable districts in California (i.e. those enrolling 1500 students or more).* General Fund revenue exceeds $10,000 per student, and that doesn't even count the property taxes that go to debt payments.

Did spending the most money buy the top test scores?

Hardly. The Districts which got better proficiency ratings in language arts and math spent an average of 23% less money per student than the Menlo Park City School District. But our teachers were paid incomes averaging 23% more than in the districts with better scores!

Not like a mortgage:

Home buyers make interest payments with money that would otherwise have gone to rent. With school bonds, however, local taxpayers make the payments. This permits diversion of General Fund revenue that should fund building maintenance and improvements into fatter payrolls.

Vote `no'! There is no excuse for this profligacy.

/s/ John J. "Jack" Hickey March 17, 2006 Healthcare District Trustee

/s/ Christopher VA Schmidt March 17, 2006 Secretary, Libertarian Party of San Mateo County

Rebuttal to Arguments Against
The argument against Measure U comes from people who do not live in the Menlo Park City Elementary School District. Their aim is to misinform and confuse voters.

The real choice on June 6th is clear:

"Yes" on Measure U is a vote to:

  • Replace temporary, portable classrooms with new, permanent classrooms and regain essential playground space.

  • Expand facilities for today's students and prepare for growing enrollment.

  • Continue modernizing school facilities built in the 1950's.

  • Ensure strong property values by supporting local schools.

"No" on Measure U is a vote to:

  • Add more portable classrooms at every school-wasting tax dollars on lease payments and reducing field space.

  • Leave students with inadequate multi-use facilities, resulting in fewer opportunities for athletics, assemblies and performances.

  • Allow aging buildings to deteriorate. Check the facts at http://www.buildforfuture.org. For two years, the District has systematically prepared plans for Measure U. Working with engineers, architects and demographers, the District reviewed its facilities, budget and growing enrollment. In numerous public meetings, the School Board and Superintendent listened to parents, teachers and residents. After architects prepared plans and options for each school, the District analyzed the scope and cost of the proposals and developed Measure U as a solution to well-defined needs.

Approving Measure U is an investment in our community. Together, we can protect and enhance the value of every home and business by maintaining quality schools for our children.

Join us in voting "Yes" on Measure U--building schools for a strong community.

/s/ Karen Canty March 23, 2006 Former Trustee, Menlo Park City School District

/s/ Cindy Folker March 24, 2006 Director Development, Menlo-Atherton High School Foundation for the Future

/s/ Russ Hall March 23, 2006 Founder, Legacy Venture

/s/ Mervin Morris March 19, 2006 Founder, Mervyn's

/s/ Barbara Tyler March 23, 2006 Semi-retired Realtor

Tax Rate Statement from Superintendent, Menlo Park City School District
An election will be held in the Menlo Park City School District (the "District") on June 6, 2006, to authorize the sale of up to $91.1 million in bonds of the District to finance school facilities as described in the proposition. If the bonds are approved, the District expects to sell the bonds in 4 series. Principal and interest on the bonds will be payable from the proceeds of tax levies made upon the taxable property in the District.

The information in the following numbered paragraphs 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 2.8 cents per $100 ($28.00 per $100,000) of assessed valuation in fiscal year 2006-07.

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 2.8 cents per $100 ($28.00 per $100,000) of assessed valuation in fiscal year 2012-13.

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 2.8 cents per $100 ($28.00 per $100,000) of assessed valuation. The tax rate is expected to remain the same in each year the bonds remain outstanding.

Voters should note that the estimated tax rates are 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 to determine their property's assessed value and any applicable tax exemptions.

The foregoing information is based upon the District's projections and estimates only. 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 the need for construction funds and other factors, including the legal limitations on bonds approved by a 55% vote. 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.

/s/ Kenneth Ranella March 6, 2006

Superintendent Menlo Park City School District

Full Text of Measure U
"To replace portable classrooms, provide adequate additional classroom space to avoid overcrowding and to enhance student learning and safety by building, modernizing, renovating and acquiring school buildings and facilities at each of the District's school sites as indicated in the Bond Project List; shall the Menlo Park City School District issue $91.1 million of bonds at legal interest rates, appoint a volunteer Citizens' Oversight Committee, perform annual audits and use no bond money for administrative salaries?"

This Proposition may be known and referred to as the "Menlo Park School Facilities Bond of 2006" or as "Measure U".

BOND AUTHORIZATION

By approval of this proposition by at least 55% of the registered voters voting on the proposition, the Menlo Park City School District shall be authorized to issue and sell bonds of up to $91.1 million in aggregate principal amount to provide financing for the specific 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 safeguards specified below.

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. Proceeds of the bonds may be used to pay or reimburse the District for the cost of District staff when performing work on or necessary and incidental to the bond projects.

ACCOUNTABILITY SAFEGUARDS

The provisions in this section are specifically included in this proposition in order that the Menlo Park City School District's voters and taxpayers may be assured that their money will be spent wisely to address specific facilities needs of the Menlo Park City 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 Education has prepared an updated facilities plan in order to evaluate and address all of the facilities needs of the Menlo Park City School District at each campus and facility, and to determine which projects to finance from a local bond at this time.

The Board of Education 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 Education shall establish an independent Citizens' Oversight Committee (pursuant to Education Code Section 15278 and following), to ensure bond proceeds are spent 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 Education.

Annual Performance Audits.

The Board of Education 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.

Annual Financial Audits.

The Board of Education 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 Education 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 of the District shall cause a report to be filed with the Board no later than December 31 of each year, commencing December 31, 2006, 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 this ballot proposition, and shall be reproduced in any official document required to contain the full statement of the bond proposition.

The Bond Project List describes the specific projects the Menlo Park City School District proposes to finance with proceeds of the bonds. Listed construction projects, repairs, rehabilitation projects and upgrades will be completed as needed at a particular school site according to Board-established priorities. Bond projects are assumed to include costs of the election and bond issuance, architectural, engineering, inspection and similar planning costs, construction management (whether performed by the District or by third parties), a customary contingency for unforeseen design and construction costs, and other costs incidental to and necessary for completion of the listed projects. 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. Until all project costs and funding sources are known, the Board of Education cannot determine how much bond proceeds will be available to be spent on each project, nor guarantee that the bonds will provide sufficient funds to allow completion of all listed projects. Some projects may be subject to further government approvals by State officials and boards, and to local environmental review. For these reasons, inclusion of a project on the bond project list is not a guarantee that the project will be completed.

FURTHER SPECIFICATIONS

Specific Purposes.

All of the purposes enumerated in this proposition shall be united and voted upon as one single proposition, pursuant to Education Code Section 15100, and shall constitute the specific purposes of the bonds, and proceeds of the bonds shall be spent only for such purposes, pursuant to 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 multiple series, and no bond shall be made to mature more than 35 years from the date borne by that bond.

EXHIBIT A MENLO PARK CITY SCHOOL DISTRICT BOND PROJECT LIST

The following improvements are authorized to be carried out at the following District school sites:

Laurel, grades K-2 (95 Edge Road, Atherton)

Oak Knoll, grades K-5 (1895 Oak Knoll Lane, Menlo Park)

Encinal, grades 3-5 (195 Encinal Avenue, Atherton)

Hillview, grades 6-8 (1100 Elder Avenue, Menlo Park)

  • Construction, furnishing and equipping of permanent classrooms and instructional facilities at each campus to replace currently leased portables and accommodate projected enrollment growth.

  • Modernization of existing school facilities at each campus that further addresses such needs as asbestos or lead abatement, structural repair and improvements, building code compliance, access improvements as required by the Americans with Disabilities Act, electrical, mechanical and other building systems and technology upgrades (including replacing or installing plumbing, heating, cable, data and voice lines and network hardware), window replacement, energy conservation improvements, and general classroom improvements.

  • Site development at each school site, including landscaping, field renovation, improving traffic circulation on and into campuses, repaving and expanding current parking and hard-court playgrounds, equipment installation, upgrades to utilities and underground infrastructure (e.g., water, irrigation, drainage, sewer lines, and gas service), and additional covered walkways, lunch shelters and student gathering areas.

  • Construction, furnishing and equipping of (i) multipurpose facilities at the elementary campuses (to include such services as food preparation, gymnasium, stage area, music and other classrooms), (ii) an auditorium at the middle school (to include such customary features as a stage, seating, music and audio-visual equipment and classrooms), and (iii) other specialized facilities at all sites (such as science labs, art rooms, music classrooms, and school support facilities such as school offices, nurses' offices, libraries, teacher workrooms, storage, etc.).

  • Construction of an education resource facility for centralized District services such as storage, technology services, and distribution of instructional materials, maintenance department, and offices for District programs that serve each of the schools.

Listed improvement projects may also be carried out at the currently leased-out O'Connor School campus, if use of that site once again becomes necessary to accommodate District programs.

Other Authorized Work in Connection with Approved Projects:

  • Demolition of existing facilities and reconstruction of facilities scheduled for modernization; acquisition or lease of real property, if and when feasible, for construction of new facilities thereon, if the Board of Education determines that such an approach would be more cost-effective in creating more enhanced and operationally efficient campuses.

  • Furnishing and equipping newly constructed and remodeled facilities on this Project List. Furnishing and equipping existing school sites and for District support as needed to replace and update existing furniture and educational equipment. Equipping school facilities may include acquiring busses or other transportation vehicles for students with a useful life of at least 20 years.

  • Provide necessary site preparation and restoration in connection with new construction, renovation or remodeling, or installation or removal of relocatable classrooms, including demolition of existing buildings as needed to make way for new construction, and acquiring any necessary easements, licenses, or rights of way to the property.

  • Repair, replace, install, and/or upgrade security and energy systems as needed, including alarm, computer monitoring, automated lighting, outdoor lighting, fencing, gates and other improvements designed to reduce vandalism and theft and reduce energy consumption.

  • Repair dry rot, termite and insect infestations, structural damage or deficiencies (including seismic deficiencies), etc. to buildings and support structures as needed.

  • Provide temporary classrooms (including relocatables) as needed, to house students displaced during construction, through rental or acquisition, or provide additional long-term school facilities by buying out the leasehold interest of a lessee of District facilities.


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