Butte-Glenn Community College

Measure J Bond Measure - 55% Approval Required

        This analysis of the general obligation bond measure for the Butte-Glenn Community College District (“District”), Measure J, is prepared and submitted to the voters in accordance with Elections Code section 9500 et seq. The electors who will be entitled to vote on the measure are those qualified electors who reside within the boundaries of the District. If approved, the issuance of the bonds will be in conformance with the laws of the State of California. Measure J does not propose to amend or add to existing law.
        The Board of Trustees of the District proposes this measure, which would authorize the District to issue bonds in an amount not to exceed $190,000,000.00. The bonds will have an interest rate not exceeding the legal maximum. The District’s best estimate of the annual tax rate levy to fund this bond is $25.00 per $100,000.00 of assessed valuation, which includes its estimate of the initial rate and the highest expected rate. This means that a property assessed (not market value) at $200,000.00 would likely have an annual tax assessment of $50.00 for the duration of the bond repayment period.

        The California Constitution requires the listing of specific school facilities projects to be funded from the bond revenue and certification that the District governing board has evaluated safety, class reduction, and information technology needs in the development of that list. The District’s “Projects” list for the bond is attached to the full text of the measure and lists two general types of projects: urgent and basic repairs to facilities and facility improvements to help students train for high-paying jobs. Listed improvements include: upgrading electrical systems, gas and sewer lines, replacing outdated plumbing and wiring, removing asbestos, upgrading water and security systems, upgrading classrooms for career pathways in nursing, law enforcement and welding, repairing classrooms to better prepare veterans for high paying jobs, providing facilities to prepare students to transfer to four-year colleges and universities, improving vocational education to prepare students for careers, providing a permanent Veterans Resource Center, building a new welding facility, providing a science, technology and engineering center for instruction in high-tech fields and refinancing of outstanding lease obligations. The text of Measure J should be reviewed for further details.

        The California Constitution and Education Code require the District to take certain steps to account for the proceeds from the bonds. Accordingly, the District will direct the funds to be deposited into a special account, appoint an independent citizen’s oversight committee, conduct annual independent performance and financial audits to assure that funds are spent only on the listed improvements and for no other purposes, and prepare annual reports listing the amount of funds collected and expended and the status of any funded project. This measure passes if 55% of those voting on the measure vote “yes”.

s/Bruce S. Alpert Butte County Counsel

        An election will be held in the Butte-Glenn Community College District (the “District”) on November 8, 2016, for the purpose of submitting to the electors of the District the question of issuing General Obligation Bonds of the District in the principal amount of $190,000,000. If the bonds are approved, the District expects to issue the Bonds in multiple series over time. Principal and interest on the bonds will be payable from the proceeds of tax levies made upon the taxable property in the District. The following information regarding tax rates is provided to comply with Section 9401 of the Elections Code of the State of California. This information is based upon the best estimates and projections presently available from official sources, upon experience within the District and other demonstrable factors.

        Based upon the foregoing and projections of the assessed valuations of taxable property in the District, and assuming the entire debt service, including principal and interest on the bonds, will be paid through property taxation:

        1. The best estimate from official sources of the tax rate that would be required to be levied to fund the bond issue during the first fiscal year after the first sale of the bonds and an estimate of the year in which that tax rate will apply is $0.025 per $100, or $25.00 per $100,000, of assessed valuation of all property to be taxed in fiscal year 2018-19.

        2. The best estimate from official sources of the tax rate that would be required to be levied to fund the bond issue during the first fiscal year after the last sale of the bonds and an estimate of the year in which that tax rate will apply is $0.025 per $100, or $25.00 per $100,000, of assessed valuation of all property to be taxed in fiscal year 2026-27.

          3. The best estimate from official sources of the highest tax rate that would be required to be levied to fund the bond issue and an estimate of the year in which that rate will apply is $0.025 per $100, or $25.00 per $100,000, of assessed valuation of all property to be taxed in fiscal year 2018-19.

        4. The best estimate from official sources of the total debt service, including principal and interest, which would be required to be repaid by the tax rates levied on taxable property, if all of the bonds are issued, sold and paid as projected would be $332,099,100.

        Voters should note that estimated tax rates are based on the ASSESSED VALUE of taxable property on the Counties’ official tax rolls, not on the property’s market value, which could be more or less than the assessed value. In addition, taxpayers eligible for a property tax exemption, such as the homeowner’s exemption, will be taxed at a lower effective tax rate than described above. Certain taxpayers may also be eligible to postpone payment of taxes. 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 respective County Assessors of Butte and Glenn Counties in the annual assessment and the equalization process.

s/Dr. Samia Yaqub
Superintendent/President of the
Butte-Glenn Community College District

EXHIBIT B
FULL TEXT BALLOT PROPOSITION

BUTTE-GLENN COMMUNITY COLLEGE DISTRICT
BOND MEASURE ELECTION NOVEMBER 8, 2016

“BUTTE COLLEGE REPAIR/ SAFETY/ JOB TRAINING MEASURE.  To upgrade classrooms to improve safety and prepare students/ veterans for university transfer/careers, such as nursing, welding, emergency response, by upgrading aging classrooms/ technology, removing asbestos/ unsafe gas lines, improving water conservation, electrical wiring, security, constructing science, welding, public safety, Veterans facilities, and repairing, acquiring, constructing property, facilities/ equipment, shall ButteGlenn Community College District issue $190,000,000 in bonds at legal rates, requiring independent audits, citizen oversight, all funds spent locally?” Bonds – Yes Bonds – No

PROJECTS

The Board of Trustees of the Butte-Glenn Community College District, to be responsive to the needs of its community, evaluated Butte College’s urgent and critical facility needs, and its capacity to provide students, and Veterans with support and job training facilities, an affordable education and prepare them for success in college and in obtaining high-paying jobs. Career pathway facilities, safety issues, class size and offerings, and information and computer technology were each considered in developing the scope of projects to be funded. In developing the scope of projects, urgent and basic repairs, job training facilities, campus safety, facilities supporting Veterans, and the expansion of opportunities for local students to prepare students for careers in growing fields like nursing, welding and law enforcement, were prioritized. If these facility needs are not addressed now, Butte College would be unable to remain competitive in preparing students for jobs in high demand industries and university transfer. The Board of Trustees determines that Butte College MUST:

(i)           Provide vocational education to prepare students for careers in growing fields like nursing, and career pathways in high-paying fields like welding and law enforcement;

(ii)          Expand essential job training and workforce preparation for students who need higherpaying or skilled jobs;

(iii)         Better prepare returning Veterans for high-paying jobs;

(iv)         Because public universities are so expensive, provide local students with a high quality and affordable education they may not otherwise receive;

(v)          Make urgent and basic repairs like deteriorating and outdated electrical, gas and sewer lines, and leaky roofs;

(vi)         Adhere to stringent FISCAL ACCOUNTABILITY safeguards including:

                (a)      All expenditures will be subject to annual independent financial audits, and

                (b)      No funds will be used for administrators’ salaries and pensions.

    The following types of projects are authorized to be undertaken at Butte College:

PROVIDE AN AFFORDABLE EDUCATION:

Urgent and Basic Repair Projects NeededTo
Make Butte College a Safe Place for Learning

Goals and Purposes:    Because the University of California and California State systems are becoming so expensive, more people are relying on community colleges to provide local students with a high-quality and affordable education they may not otherwise receive.

Much of the Butte College campus was built over 40- years ago, and many buildings, classrooms, science labs, and job training equipment are deteriorating, run down, and in need of repair. This measure will address urgent and basic repairs such as upgrading electrical systems, gas and sewer lines, replacing outdated plumbing and wiring, removing asbestos, and upgrading water and security systems to make our local college clean and safe for learning.

• ·        Improve water conservation.
  
• ·        Replace deteriorating gas, electrical and sewer lines and leaky roofs.
  
• ·        Replace outdated electrical wiring.
  
  
• ·        Remove asbestos.
  
  
• ·        Meet current building safety codes.

PROVIDE JOB TRAINING AND VOCATIONAL PREPARATION TO LOCAL STUDENTS:

Essential Facility Improvements
To Help Students and Veterans
Be Trained For High-Paying Jobs

Goals and Purposes:  Butte College serves hundreds of military veterans. This measure will provide a Veterans Resource Center and job training so returning Service Members receive the support they need to complete their education and enter the civilian workforce.

Butte College provides essential job training and workforce preparation for students of all ages. This measure will support training and education in automotive technology, nursing, paramedic and 9-1-1 emergency medical training, agriculture trades, early childhood education, law enforcement, welding, construction, engineering and technology, among others.

• ·      Upgrade classrooms for job and career pathways in fields like nursing, law enforcement and welding.
  
• ·      Repair classrooms to better prepare returning veterans for high-paying jobs.
  
• ·      Provide facilities to prepare students to transfer to four-year colleges and universities.
  
• ·      Improve vocational education to prepare students for careers.
  
• ·      Provide a permanent Veterans Resource Center.
  
• ·      Build a new welding facility.
  
• ·      Provide a science, technology and engineering center for instruction in high-tech fields.

* * *

The listed projects will be completed as needed. Each project is assumed to include its share of furniture, equipment, architectural, engineering, and similar planning costs, program/project management, staff training expenses, a customary contingency, and costs associated with the Total Cost of Ownership of facilities and equipment. In addition to the listed projects stated above, authorized projects also include the acquisition of a variety of instructional, maintenance and operational equipment, including interim funding incurred to advance fund projects from payment of the costs of preparation of all facility planning, fiscal reporting, facility studies, assessment reviews, facility master plan preparation and updates, environmental studies (including environmental investigation, remediation and monitoring), design and construction documentation, and temporary housing of dislocated college activities caused by construction projects. In addition to the projects listed above, repair, renovation and construction projects may include, but not be limited to, some or all of the following: renovate student and staff restrooms; replace aging electrical and plumbing systems; repair and replace heating, ventilation and air conditioning systems; upgrade of facilities for energy efficiencies, including photovoltaic/solar installations; repair and replace worn-out and leaky roofs, windows, walls doors and drinking fountains; replace or remove outdated buildings and classrooms and construct new classrooms, science labs and support buildings; install wiring and electrical systems to safely accommodate computers, technology and other electrical devices and needs; upgrade facilities to meet current environmental sustainability and State compliance standards; repair and replace fire alarms, emergency communications and security systems; upgrade, resurface, replacing or relocate hard courts, fields, turf and irrigation systems; upgrade classrooms; build or upgrade facilities; construct, expand or reconfigure facilities to create large lecture classrooms; construct parking structure; upgrade, resurface and recondition existing parking lots; improve vehicular access and traffic circulation; improve walkways, drop-off zones; repair, upgrade and install interior and exterior lighting systems; replace water lines and valves, sewer lines and other plumbing systems; construct, upgrade, acquire or expand multi-use classrooms and labs, buildings for technology, welding, life science/ physical science, Skyway Center Automotive buildout, public safety training range, physical education/ facilities, locker rooms, field lights, and instructional buildings, trades and technology building, library, athletic fields, student services buildings; improve water conservation and energy efficiency; acquire land; replace or upgrade outdated security and safety systems; replace existing window systems with energy-efficient systems to reduce costs; improve insulation, weatherproofing and roofs to reduce costs; improve access for the disabled; install and repair fire safety equipment, including alarms, smoke detectors, sprinklers, emergency lighting, and fire safety doors; replace broken concrete walks, deteriorated asphalt; replace/upgrade existing signage, bells and clocks; demolition of unsafe facilities; install new security systems, such as security (surveillance) cameras, burglar alarms, handrails, outdoor lighting, fencing, gates and classroom door locks; replace sewer lines and improve drainage systems to prevent flooding; upgrade roadway and pedestrian paths for improved safety and access for emergency vehicles, site parking, utilities and grounds. The project list also includes the refinancing of outstanding lease obligations. The upgrading of technology infrastructure includes, but is not limited to, upgrading classroom technology, expanding wireless internet access throughout both college campuses, acquire portable interface devices, servers, switches, routers, modules, sound projection systems, information systems, printers, digital white boards, upgrade voice-over-IP, communication systems, audio/visual and telecommunications systems, call manager and network security/firewall, Internet connectivity, wireless systems, technology infrastructure, and other miscellaneous IT and instructional equipment, DATA storage, fiber/copper infrastructure, phones, identity access cards and the creation and funding of a technology endowment.

The allocation of bond proceeds may be affected by the District’s receipt of State matching funds and the final costs of each project. Some projects may be undertaken as joint use projects in cooperation with other local public or non-profit agencies. The budget for each project is an estimate and may be affected by factors beyond the District’s control. The final cost of each project will be determined as plans and construction documents are finalized, construction bids are received, construction contracts are awarded and projects are completed. Based on the final costs of each project, certain of the projects described above may be delayed or may not be completed. Demolition of existing facilities and reconstruction of facilities scheduled for repair and upgrade may occur, if the Board determines that such an approach would be more cost-effective in creating more enhanced and operationally efficient campuses. Necessary site preparation/restoration may occur in connection with new construction, renovation or remodeling, or installation or removal of relocatable classrooms, including ingress and egress, removing, replacing, or installing irrigation, utility lines, trees and landscaping, relocating fire access roads, and acquiring any necessary easements, licenses, or rights of way to the property. 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 bond projects. Bond proceeds shall only be expended for the specific purposes identified herein. The District shall create an account into which proceeds of the bonds shall be deposited and comply with the reporting requirements of Government Code § 53410.

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FISCAL ACCOUNTABILITY

This bond measure has strict accountability requirements including:

1.     All money will benefit Butte College campuses and CANNOT BE TAKEN BY THE STATE.

2.     NO MONEY can be used for ADMINISTRATOR SALARIES or pensions.

3.     Require CITIZENS’ OVERSIGHT and yearly audits to ensure all funds are used locally, effectively and as promised.

4.     NO ADMINISTRATOR SALARIES. Proceeds from the sale of the bonds authorized by this proposition shall be used only for the acquisition, construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, and not for any other purpose, including teacher, faculty and college administrator salaries, pensions and other operating expenses.

5.     FISCAL ACCOUNTABILITY. THE EXPENDITURE OF BOND MONEY ON THESE PROJECTS IS SUBJECT TO STRINGENT FINANCIAL ACCOUNTABILITY REQUIREMENTS. BY LAW, PERFORMANCE AND FINANCIAL AUDITS WILL BE PERFORMED ANNUALLY, AND ALL BOND EXPENDITURES WILL BE MONITORED BY AN INDEPENDENT CITIZENS’ OVERSIGHT COMMITTEE TO ENSURE THAT FUNDS ARE SPENT AS PROMISED AND SPECIFIED. THE CITIZENS’ OVERSIGHT COMMITTEE MUST INCLUDE, AMONG OTHERS, REPRESENTATION OF A BONA FIDE TAXPAYERS ASSOCIATION, A BUSINESS ORGANIZATION AND A SENIOR CITIZENS ORGANIZATION. NO DISTRICT EMPLOYEES OR VENDORS ARE ALLOWED TO SERVE ON THE CITIZENS’ OVERSIGHT COMMITTEE.