This training is provided for educational, compliance and loss-prevention purposes only and, absent the express, prior agreement of DWK, does not create or establish an attorney-client relationship. The training is not itself intended to convey or constitute legal advice for particular issues or circumstances. Contact a DWK attorney for answers to specific questions. © 2014 Dannis Woliver Kelley Santa Rosa City Schools Meredith Johnson, Bond Counsel School District Bonds and Citizens' Oversight Committees

© 2014 Dannis Woliver Kelley 2 General Obligation Bonds Assessed Value $$$ x 1% = Regular Property Taxes x.00?? = Debt Service on Bonds

© 2014 Dannis Woliver Kelley 3 Historical Framework  Cal. Const. Permits Bonds with 2/3 Approval  Only Issues Authorized Prior to Nov  Back to 2/3 Approval (Prop. 46)  2000-PresentAdditional 55% Authorization for Schools & CCD’s Only (Prop. 39)

© 2014 Dannis Woliver Kelley 4 Small Co. Small Co. General Electric General ElectricDistricts Federal Gov’t Federal Gov’t Bill Gates Bill Gates Costs of Borrowing Your Credit Card Your Car Loan Your Mortgage Your Mortgage $

© 2014 Dannis Woliver Kelley 5 Procedural Steps  District Calls Election  Voters Pass at 2/3 or 55%  District Appoints C.O.C.  Issue Series A Bonds  Prioritize and Build Projects  C.O.C. Reports to Taxpayers

© 2014 Dannis Woliver Kelley 6 Campaign Promises  Max Tax Rate  Described Projects  Priorities  Citizen Oversight

© 2014 Dannis Woliver Kelley 7 Bond Proceeds are Segregated in Special Building Fund with County Treasurer

© 2014 Dannis Woliver Kelley 8 Bond Proceeds May be Spent Only: On Qualified (Approved) Projects and NOT on SalariesOn Qualified (Approved) Projects and NOT on Salaries § 15278(b) But see A.G. Opin

© 2014 Dannis Woliver Kelley 9 Citizens’ Oversight Committee (Ed. Code Sections )  60 days after Election CERTIFIED  Minimum 7 Members, WITH ONE EACH: ─ Senior Citizen ─ Taxpayer Ass’n Representative ─ Local Business Representative ─ PTA Member (Foundation for CCD) ─ Parent of Student (Enrolled Student for CCD)

© 2014 Dannis Woliver Kelley 10 Citizens’ Oversight Committee  Brown Act  Annual Report  Oversight & Comment Only; No Control Over Bond Proceeds/Projects

© 2014 Dannis Woliver Kelley 11 Conflicts of Interest  COC may not include as Members: ─ Employees of the District ─ Vendors of the District ─ Contractors of the District  Members’ immediate family should also be independent

© 2014 Dannis Woliver Kelley 12 Purpose of Committee “To inform the public concerning expenditure of bond revenues.” § 15278, Ed. Code

© 2014 Dannis Woliver Kelley 13 How to “Inform Public?” 1.Understand Project List 2.Get Data from District re: Construction 3.Ask Questions 4.Discuss, Agree at Committee 5.Report

© 2014 Dannis Woliver Kelley 14

© 2014 Dannis Woliver Kelley 15

© 2014 Dannis Woliver Kelley 16 Committee Will Be Supported Administratively by District (But Not With Bond Proceeds)

© 2014 Dannis Woliver Kelley 17 Receive and Review  Annual Independent Performance Audit  Annual Independent Financial Audit §15278(c)(1)(2)

© 2014 Dannis Woliver Kelley 18 Inspect District Facilities and Grounds Where Bond Proceeds Are Being Spent § 15278(c)(3)

© 2014 Dannis Woliver Kelley 19 Receive and Review Deferred Maintenance Plans §15278(c)(4)

© 2014 Dannis Woliver Kelley 20 Review District Efforts to Implement Cost Efficiency §15278(c)(5)

© 2014 Dannis Woliver Kelley 21 The Brown Act Government Code Section et seq. Aka: The Sunshine Law Or The Open Meetings Law REQUIRES THE PEOPLES’ BUSINESS TO BE CONDUCTED IN THE OPEN

© 2014 Dannis Woliver Kelley 22 Basic Requirements  Posting of 72 Hour Notice  Agendas  Public Access  Right of Citizens to Speak

© 2014 Dannis Woliver Kelley 23 Basic Requirements (cont.)  Limit on Closed Sessions (None for C.O.C.’s)  No Secret Meetings  No Action on Items not on Agenda  Materials Considered at Meetings Must be Made Available to Public

© 2014 Dannis Woliver Kelley 24 Violations of the Brown Act can lead to criminal charges

© 2014 Dannis Woliver Kelley 25 Questions???