City Council item 11 March 11, 2019 Memorandum of Understanding between City and PUSD implementing Measure J City Council item 11 March 11, 2019

Measures I & J November 6th Pasadena voters approved Measures I & J Measure I – ¾ cent sales (use) tax to maintain essential services/reinvest in critical infrastructure Approval rate: 68.74% Measure J - advisory measure regarding use of 1/3 Measure I proceeds for public schools Approval rate: 72.05%

Background Ad hoc committee Formed by City Council on December 10, 2018 Two meetings – Dec & Feb 19th Mayor reported out on Feb 25th Identification of Priorities Fiscal Stabilization Restoring/Maintaining Existing Programs Other District projects and programs that benefit students

MOU Terms Based on Priority areas Three year base term Financial terms Automatic annual renewals unless terminated Financial terms City to provide LACOE on behalf of PUSD amount equal to 1/3 of Measure I receipts monthly For first fiscal year only - City to guarantee PUSD $5 million Correction: not calendar year Accountability Required reporting of allocation of funds by priority area Description of the use of previously received funds Expenditure plan for coming fiscal year Reviewed as part of annual City budget process

Recommendation Find that the proposed action is exempt from CEQA in accordance with Section 15061(b)(3), the “General Rule”; and, Approve a Memorandum of Understanding between the City and the Pasadena Unified School District implementing Measure J, in essentially the form attached to the staff report

Charter Schools Staff does not recommend providing Measure J funds to Charter Schools PUSD is facing a financial crisis necessitating millions $ in program cuts and staff reductions that will hurt Pasadena students and their families No such evidence has been provided from charter schools The City’s Economic Development Task Force specifically called out support for PUSD A strong local school district supports business attraction