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Governing Board Resolution

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BEFORE THE GOVERNING BOARD OF THE GROSSMONT UNION HIGH SCHOOL DISTRICT SAN DIEGO COUNTY, CALIFORNIA

RESOLUTION NO. 2003-148

RESOLUTION ORDERING AN ELECTION TO AUTHORIZE THE ISSUANCE OF SCHOOL BONDS, ESTABLISHING SPECIFICATIONS OF THE ELECTION ORDER, AND REQUESTING CONSOLIDATION WITH ANY OTHER ELECTIONS OCCURRING ON MARCH 2, 2004

WHEREAS, in the judgment of the Governing Board (the "Board") of the Grossmont Union High School District (the "District"), it is advisable to call an election to submit to the electors of the District the question of whether the bonds of the District shall be issued and sold for the purpose of raising money for the improvement and renovation of the District's existing schools, acquisition and improvement of new school sites, and the construction of new schools and school facilities; and

WHEREAS, as a result of the approval of Proposition 39 on November 7, 2000, Article XIIIA, Section 1, paragraph (b) of the California Constitution ( "Article XIIIA") provides an exception to the limit on ad valorem property taxes on real property for bonded indebtedness incurred by a school district that has been approved by fifty-five percent (55%) of the voters of the District voting on the proposition; and

WHEREAS, pursuant to California Education Code section 15264 et seq. (the "Act"), this Board is specifically authorized, upon approval by two-thirds (2/3) of the Board, to submit to the electorate of the District the question of whether bonds of the District shall be issued and sold for specified purposes, upon a fifty-five percent (55%) vote of the electorate in favor on the question, pursuant to paragraph (3) of said subdivision (b) of Section 1 of Article XIIIA and subdivision (b) of Section 18 of Article XVI of the California Constitution; and

WHEREAS, most of the District's school facilities are between 40 and 60 years old and, therefore, many have outdated safety systems including fire alarms, security systems and lighting; deteriorating plumbing, bathrooms and drinking fountains; inadequate ventilation and heating systems; outdated science labs, classrooms and libraries; deteriorating roofs and many contain asbestos and lead paint; and

WHEREAS, such physical conditions of the existing school facilities do not satisfy the safety and technological and curriculum standards of the District thereby creating the need to modernize, renovate, rehabilitate and expand such existing school facilities, replace portable classrooms, furnish and/or equip such school facilities and/or lease school facilities; and

WHEREAS, additionally, growth in student enrollment in the District has also increased resulting in severely overcrowded conditions in the existing school facilities thereby creating the need to construct a new high school to serve students residing in the Alpine/Blossom Valley region of the District and to thereby relieve overcrowding in the District's existing school facilities; and

WHEREAS, pursuant to California Election Code section 10403 et seq., it is appropriate for the Board to request consolidation of the election with any and all other elections to be held on Tuesday, March 2, 2004, and to request the San Diego County Registrar of Voters to perform certain election services for the District. NOW, THEREFORE, THE GOVERNING BOARD OF THE GROSSMONT UNION HIGH SCHOOL DISTRICT HEREBY RESOLVES, DETERMINES, AND ORDERS AS FOLLOWS:

1. Call for Election. The Board hereby orders an election and submits to the electors of the District the question of whether general obligation bonds of the District shall be issued and sold in the principal amount not to exceed $274,000,000 for the purpose of raising money for the improvement, renovation, reconstruction and rehabilitation of the District's existing schools, acquisition and improvement of new school sites, and the construction of new schools and school facilities and paying costs incident thereto, as set forth more fully in a ballot proposition approved pursuant to Section 3 below. This Resolution constitutes the order of the District to call such election.

2. Election Date. The date of the election shall be March 2, 2004, and the election shall be held solely within the boundaries of the District.

3. Purpose of Election; Ballot Proposition. The purpose of the election shall be for the voters of the District to vote on a proposition, a full copy of which is attached hereto as Exhibit A, containing the question of whether the District shall issue the Bonds for the purposes stated therein, together with the accountability requirements of Article XIIIA and the requirements of Section 15272 of the Act. As required by California Elections Code section 13247, the abbreviated form of the measure to appear on the ballot is attached hereto as Exhibit B. The District's Superintendent (or designee) is hereby authorized and directed to make any changes to the text of the proposition or its abbreviated form as required to comply with the intent of this Resolution, the requirements of elections officials, and requirements of law.

4. Authority for Election. The authority for ordering the election is contained in California Education Code section 15264 et seq. and Article XIIIA, Section 1, paragraph (b), subsection (3) of the California Constitution. The authority for the specification of this election order is contained in California Education Code section 5322.

5. School Facilities Projects. A list of the specific school facilities projects to be funded from the proceeds of the bonds is set forth in Exhibit A. As required by Article XIIIA, the Board hereby certifies that it has evaluated safety, class-size reduction, and information technology needs of the District in developing the list of school facilities projects set forth in Exhibit A.

6. Maximum Tax Levy. If 55 percent of the votes cast in the election are in favor of the proposed bonded indebtedness and bonds are sold pursuant to such authorization, the bonds will only be sold if the tax rate levied to meet the requirements of Section 18 of Article XVI of the California Constitution will not exceed $30 per $100,000 of taxable property in the District when assessed valuation is projected by the District to increase in accordance with Article XIIIA of the California Constitution.

7. Covenants of the Board Upon Approval of the Bonds by the Electorate. As required by Article XIIIA and Section 15270 of the Act, if fifty-five percent (55%) of the voters of the District voting on the measure approve of the bonds, the Board shall:

(a) Use the bond proceeds only for the purposes of 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, as specifically set forth in Exhibit A, and not for any other purpose, including teacher and administrator salaries and other school operating expenses;

(b) Conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the projects listed in Exhibit A;

(c) Conduct an annual, independent financial audit of the proceeds from the sale of the Bonds until all of those proceeds have been expended for school facilities projects listed in Exhibit A; and

(d) Establish and appoint members to an independent citizens' oversight committee in accordance with sections 15278, 15280, and 15282 of the Act. In addition to the foregoing, the Governing Board shall, pursuant to Sections 53410 and 53411 of the Government Code, if 55 percent of the votes cast in the election are in favor of the proposed bonded indebtedness and the subsequent sale of any bonds is approved by the Governing Board, take such action as may be necessary to establish an account for the deposit of the proceeds of such bonds. For so long as the proceeds of such bonds remain unexpended, the Superintendent, or his designee, shall cause a report to be annually filed with the Board stating: (i) the amount of the bond proceeds received and expended and (ii) the status of any project funded or to be funded from the proceeds of such bonds. Such report may relate to the calendar year, the District's fiscal year, or such other appropriate annual period as the Superintendent or his designee shall determine. Such report may be incorporated into the District's annual budget, audit or other appropriate report to the Board.

8. Delivery of this Resolution. The Clerk of this Board is hereby authorized and directed to send or hand deliver a copy of this Resolution to the Registrar of Voters and the Clerk of the board of Supervisors of the County of San Diego by no later than December 5, 2003.

9. Declaration of Official Intent. The District hereby declares its official intent, subject to the further approval of this Board, to use up to $30,000,000 of the proceeds of the proposed bonds to reimburse itself for the Reimbursement Expenditures. It is intended that this Resolution shall, among other things, constitute a declaration of "official intent" within the meaning of Section 1.150-2 of the Treasury Regulations promulgated under Section 150 of the Internal Revenue Code of 1986, as amended.

10. Ballot Arguments; Tax Rate Statement. Any and all members of this Board are hereby authorized to act as an author of any ballot argument prepared in connection with the election, including a rebuttal argument. The Superintendent, President of the Board, or their designees, are hereby authorized to execute any Tax Rate Statement or other document and to perform all acts necessary to place the bond measure on the ballot.

11. Consolidation of Election; Election services. The San Diego County Registrar of Voters and the San Diego County Board of Supervisors are hereby requested to consolidate the election ordered hereby with any and all other elections to be held on March 2, 2004 within the District. Pursuant to section 5303 of the Education Code and section 10002 of the Elections Code, the Board of Supervisors is requested to permit the County Registrar of Voters, or other appropriate officials of the County of San Diego, to render all services necessary in connection with the bond election including, but not limited to, publication of a Formal Notice of School Bond Election pursuant to Education Code 5363 and related law, the mailing of the sample ballot and tax rate statement (described in section 9401 of the Elections Code), the opportunity to submit ballot arguments in connection with the bond election, the canvassing and certification of the returns of the election, and other ballot requirements pursuant to Elections Code section 15123, for which services the District agrees to reimburse the County as required by law.

12. Effective Date. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 3rd day of December, 2003, by the following vote:

AYES: 5

NOES: 0

ABSENT OR NOT VOTING: ___________________

________________________________________

President, Governing Board of the Grossmont Union High School District STATE OF CALIFORNIA ) ) COUNTY OF SAN DIEGO )

I, Evelyn Wills, Clerk of the Governing Board of Grossmont Union High School District, do hereby certify that the above and foregoing is a full, true and correct copy of a resolution adopted by said Board at a special meeting thereof at the time and place of vote stated, which resolution is on file and of record in the office of said Board.