CUSD Proposal

Tax Levy: 

$34 per $100,000 assessed value $340 per year on a million dollar home.

Number of Years to Maturity:

Not Specified

Total Bond Amount: 

$120 million [ Net Amount $116 million ] + Passing this Bond entitles them to $25 million in matching funds. Total Funds for projects: $141 million.

SFID Boundary:

Includes San Clemente (excluding Talega). Excludes the following Comunities that are boundried to Palisades: Pacific San Juan and Meridith Canyon. But is does include Capistrano Pointe Apartments.

Projects:

San Clemente High New Projects: $54,953,043

San Clemente High Renovation /Modernization Projects: 

Plus new Air Conditioning at San Clemente High School Gym: $3.8 million

Total San Clemente High School: $91,235,000

Total $141 million less ($91 million for San Clemente High School)

$50 million for all other school projects.

CUSD is planning to spend $13 million in new construction at Palisades and $3.7 million in repairs and maintenance (Priorities 1 and 2 of the Kitchel Facility Assessments). Total for Palisades: $17 million

This would leave $33 million for all San Clemente School projects. Which is not enough to complete even FCA Priority 1 & 2 of the Kitchel Report aka "Emergency Repairs and Maintenance".

The SFID that Trustees Approved June 12, 2019 is a horrible use of San Clemente Tax Dollars. There is a better proposal.

Elementary/Middle School Combined to be funded by CUSD

CUSD to pay for Talega Vista Del Mar Elementary and Middle School $6.7 million out of remaining CFD Funds and CUSD Deferred Maintenance Funds:

August 22, 2018 CUSD BOT Meeting Agenda

CUSD to Vote on CFD Budgets for 2018-19 

August 22, 2018 CUSD BOT Meeting Agenda

CUSD to Vote on CFD Budgets for 2018-19 

$64,597,000

$57,844,000

San Clemente High School

New Student Service/Library with Cafeteria and Kitchen 

New Performing Arts Center 

New Pool/Bleachers/Pool Building

Renovate 100-700 Classrooms

Air Conditioning San Clemente High School

Total

$20,707,813

$20,470,230

$13,775,000

$32,476,375

$3,806,250

$91,235,660

San Clemente would be $18 million short to complete all the projects for all San Clemente Schools. May be right on budget because CUSD inflates all the costs.

CUSD Should do a separate SFID for Capo Beach for Palisades Elementry School. It would be very small $13 million + $4 million = $17 million Dollars

Comment from Laura Ferguson San Clemente City Council Member and Talega Residents for Fair Taxation

CUSD is the agency that receives and manages the Mello Roos portion of the property taxes that Talega homeowners and Talega commercial property owners pay above their ad valorem base tax rate that the County collects.

For years CUSDS abused the Mello-Roos by collecting far more than what was needed to service the bond debt and principal.

The Board must vote every August on the special tax rate and what to do with Talega's surplus taxes. Until Talega Residents for Fair Taxation, which I formed with a group of concerned homeowners remedied all of the special tax abuses at the hands of CUSD

CUSD had over-collected about $22M in surplus Mello Roos.

It would have been another $60M over the life our bond payments for CFD 90-2 and IA 2002-1 bondsfrom Talega homeowners and commercial property owners in Talega.

After we remedied the overtaxation and had 3 major taxpayer victories as volunteer advocates for fair and equitable taxation (no lawsuit) which took nearly one year, we then continued for another year to urge the CUSD school board to use the surplus taxes they over-collect to pay down our bond debt sooner since CUSD deemed that all facilities contemplated in our mitigation agreement (our contract) have been built thus already we have satisfied our contract for facilities (and then some).

CUSD decided to use the excess to cover debt service only and no longer keep it to use on unauthorized projects but what was really wonderful was that this same practice was applied districtwide across all 10 Community Facilities (Mello Roos) districts CUSD managed and derived special tax revenue from.

A big win for taxpayers who pay 2 times the tax of those living outside of a CFD.

There are 13 years left of the Mello Roos payments in Talega.

OC Grand Jury Report: Mello-Roos: Perpetual Debt Accumulation and Tax Assessment Obligation

CUSDWatch Comment

CUSD has not fixed and maintained school facilities in San Clemente for decades. CUSD lost Measure M in 2016; a $998 million dollar school facility bond ($1.5 billion repayment), and has had no choice but to begin fixing some things with the money they do have. CUSD is desperate to get a bond in 2020 so that they can continue annual accross the board employee compensation increases that total about $30 million per year.  They have given themselves 5 consecutive years of across the board employee compensation increases that now total over $150 million dollars.

THERE IS NO MONEY!  [turn up the volume parts are hard to hear]

CUSD Superintendent Kristen Vital speaking to San Clemente High School PTSA re: 2020 bond measure. [Superintendent Kristen Vital has doubled her compensation since she arrived in the middle of 2014] That is why there is no money for facilities. CUSD always puts adult jobs as their priority above the education of students.

From Transparent California [most current year 2017]

The following are the facts regarding facilities conditions in San Clemente schools as of June 2017. 

"In assessing the condition of all the facilities, Kitchell’s team of Facilities Condition Assessment (FCA) professionals identified those items in need of repair, retrofit or replacement necessary to preserve the existing facilities and enhance the safety and longevity of the facilities for the next five years [2022]."

"The scope of Kitchell’s structural assessment was limited to the visual observation and notation of apparent structural deficiencies and did not include calculations or analysis."

To cost to bring all San Clemente schools up to minimum standards according to the 2017 Kitchell Report was $64.6 million dollars

Kitchell Facilities Condition Assessments completed in June 2017 

Note: CUSD wants the San Clemente SFID to include Palisades Elementary School in Capistrano Beach [part of the City of Dana Point]. The original amount identified for Palisades was $12.77 million. I have spoken out very strongly against supporting a San Clemente bond that included Palasades Elementary School while excluding Talega schools. CUSD is now tating that they only need $4 million for Palisades rather than the $12.77 they originally asked for. 

Note: CUSD's current plan is to exclude Talega residents from the bond, which means they are not going to allocate any bond funds to fix and maintain Talega schools, even though CUSD over collected $60 million  dollars in Mello Roos funds from Talega residents and mis-used that money to build projects that did not always benefit Talega residents. CUSD actually used $500,000 of Talega CFD 90-2 funds to demolish buildings on San Clemente High Schools upper campus to prevent the building from being used as a Charter school. See: CUSDWatch: September 7, 2018 Agenda Item #4 San Clemente High School Upper Campus Demolition Project

It is CUSDs' Constitutionally mandated responsibility to rovide a minimum education to all CUSD students.  A minimum education has been defined by the Courts to be "Opportunity" to obtain:

Program expansion and variety

High Quality Staff

Beneficial Teacher-Pupil Ratios and Class Sizes

Modern Equipmment and Materials and

High Quality Buildings

See CUSDWatch: Slide Share Invidious Discrimination

CUSDWatch Comment

The purpose of this agenda item was for the Board to vote on:

1. The SFID Boundary
2. Tax Levy Amount
3. Facility Projects
4. Timeline

Staff recommendation is for the SFID to exclude Talega, Pacifica San Juan, and Meredith Canyon. 

The SFID will include parts of Capo Beach and pay for projects at Palisades Elementary School in Capo Beach

CUSD Board and Staff discussions egarding the SFID boundaries were very interesting.

I do not support this SFID. The numbers do not add up. The numbers show that the district is creating a slush fund, while ignoring the needs of all San Clemente schools except San Clemente High School. The numbers also show that the SFID will be used to fund improvements at Palisades Elementary School in Capistrano Beach; which is of no benefit to San Clemente residents, while excluding any funds for most other San Clemente Schools. 

CUSDWatch Comment

$34 per $100,000 of assessed value 

Bond Proceeds are $116 million.

If you own a million dollar home you will be paying $340 per year. The length of the bond repayment term is not specified in this agenda item.    

We can bring all San Clemente Schools up to minimum standards for $65 million. That would leave $49 million for dditional projects. 

CUSDWatch Comment

This slide shows that the District has decieded to put all of the money into San Clemente High School.

$87,429,418 Total. 

• New Projects: $54,953,043
• Renovation/Modernization: $32,476,375

This would leave $29 million for other projects.

If you include $4 million for Palisades, this would leave about $25 million for all other San Clemente School projects.

CUSDWatch Comment

he Previous Slide showed San Clemente High School Renovation/Modernization expenses of $32,476,375. The slide below shows Renovation/Modernization expenses of $36,282,625.

A difference of just under $4 million. The same amount needed for Palisades.

The reason given for the Increase is to add airconditioning to San Clemente High School Gymnasium.

The slide also shows that CUSD is only considering spending money to fix emergency repairs and maintenance items listed as Priority 1 and 2. CUSD has an obligation to fix all the Priorty Items listed in the Kitchell Reports Priorities 1-5 at a cist of $65 million according to the Kitchell Reports. 

CUSDWatch Comment

CUSD is stating that the cost to add air conditioning to the San Clemente High School Gymnasium must be $3.8 million. [$36,282,625 -$32,476,375]

Accoding to the Kitchel Report the cost to replace all of the mechanical systems for the Gym would be $1,477,900.

CUSD's numbers are not adding up. 

page 29 of Kitchell Report $15,200 Cooling System

page 32 of Kitchell Report $15,900 Cooling System

page 38 $82,700 Cooling Systems

page 38 $16,700 Cooling Systems

page 40 $500.00 Diffusers

page 40 $1,305,800 Ductwork, insulation and air inlets and outlets

page 41 $36,900 Roof Exhaust Fan

page 41 $4,200 Roof Ventilator

CUSDWatch Comment

Look at the slide below

SFID has already include $4 million for Palisades. Now they want to include an additional $12 million in NEW projects for Palisades and $23 million for San Clemente High's upper campus? 

According to the Kitchell Reports, the "Capital Replacement Cost" for:

Bermice Ayers is $705/SF. To replace the entire school was an estimated $44 million. CUSD needs $23 million or new permanent classroom buildings to replace portables.

Las Palmas is $788/SF. To replace the entire school is $40 million. CUSD needs $28 million for 4 kindergarten classroom buildings? 

Board Audio at 58:12

On the record Kristen Vital admits that the Las Palmas figure is over stated.

Board Audio at 58:49 

On the Record Trustee Readon takes note of the fact that the total amount of the projects listed below is $98 million and the State matching funds are $25 million so Trustees would need to prioritize these projects. If $13 million in funds are used for Palisades Elementary that would leave only $12 million for other projects at San Clemente schools.

CUSDWatch Comment

All California school districts will be advocating for the passage of a State School Facility Bond in addition to their own local school facility bond. This will allow all school districts that pass a local school facility bind to apply for State matching funds. If CUSD is awarded matching funds then they would have an additional $25 million to $30 million tor modernization projects.

Note: In addition to the $4 millionalready allocated to Palisades elementary school, one of the projects on this list is an additional $13 million for Palisades bringing the total amount up to $17 million. [That is 1/6 of the Total funds available for all San Clemente Schools]

The following is NEW Construction.

None of this State Bond money will be received unless CUSD passes a Local Bond.

Also Note that CUSD wants to allocate $23 million to San Clemente High Schools Upper Campus. I have advocated that they sell the abonded upper campus and allow single family residental homes to be built there. The Campus is worth an estimated $200 million dollars. See: CUSDWatch: Rumor Has It... CUSD Is Being Offered $100 Million for San Clemente High School and CUSDWatch: June 7, 2017 BOT Meeting Oral Communications- San Clemente High School 17.44 Acres of 180' Ocean View Property.  For $200 million, we could fix all of San Clemente schools without a bond. 

CUSDWatch Comment

Lengthy discussion on SFID Boundaries.

Meridith Canyon falls in the City of San Juan Capistrano but is in Palisades Boundry. If they exclude all properties in San Juan Capistrano, Bond proceeds will drop from $116 million to $113 million.

Do you include them in a San Juan Bond later because they go to San Juan Hills High School?

Or should they be included now because they go to Palisades Elementry School?

Board Audio at 1:09:55

During the Discussions, Trustees reference a school site on Los Rambles... there is a vacant lot owned by CUSD. See: CUSD Request for Qualifications/Proposals for the Purchase of School District Real Property.  

CUSDWatch Comment

Michelle Plossel Campbell is a PTA Legislative Rep. Sadly the PTA and PTSA no longer represent what is in the best interest of educting students. The PTA and PTSA have become the fundraising arm of the CTA and should change their corporate charter to be a fundraising organization, not an advocacy organization.

Miss Campbell attends every board meeting and supports everthing that CUSD Staff and the CTA tell her to support. She has no personal interest in the San Clemente Bond. She does not live here and her children will not attend any of the school sites being discussed.

CUSDWatch Comment

The following are the City Boundaries for San Juan Capistrano, San Clemente and Dana Point:

City of San Clemente Boundary

City of Dana Pont Boundary [Capo Beach is a part of the City of Dana Point]

CIty of San Juan boundary

CUSDWatch Conclusion and Recommendation to San Clemente City Council and Residents

If this Bond is passed as voted on Bond proceeds will be $113 million.

If CUSD receives matching funds of $25 million there will be $138 million for the projects.

The first priority should be to bring ALL SAN CLEMENTE SCHOOLS up to minimum standards by 2022 at a total cost of $65 million according to the Kicthel Reports. This would include Talega Schools even if Talega residents are excluded from the new SFID Bond. Vista Del Mar Elementary/Middle School needs $6.7 million in repairs and maintenance and this could be paid for out of remaining Talega CFD Funds and Deferred Maintenance Funds since CUSD abused the Mello-Roos by collecting far more than what was needed to service the bond debt and principal. CUSD had over-collected about $22M in surplus Mello Roos. It would have been another $60M over the life our bond payments for CFD 90-2 and IA 2002-1 bondsfrom Talega homeowners and commercial property owners in Talega.

Kitchell Facilities Condition Assessments completed in June 2017 

 SFID San Clemente excluding Pallisades Elementary School

Comment from Laura Ferguson San Clemente City Council Member and Talega Residents for Fair Taxation CUSD is the agency that receives and manages the Mello Roos portion of the property taxes that Talega homeowners and Talega commercial property owners pay above their ad valorem base tax rate that the County collects. For years CUSDS abused the Mello-Roos by collecting far more than what was needed to service the bond debt and principal. The Board must vote every August on the special tax rate and what to do with Talega's surplus taxes. Until Talega Residents for Fair Taxation, which I formed with a group of concerned homeowners remedied all of the special tax abuses at the hands of CUSD CUSD had over-collected about $22M in surplus Mello Roos. It would have been another $60M over the life our bond payments for CFD 90-2 and IA 2002-1 bondsfrom Talega homeowners and commercial property owners in Talega. After we remedied the overtaxation and had 3 major taxpayer victories as volunteer advocates for fair and equitable taxation (no lawsuit) which took nearly one year, we then continued for another year to urge the CUSD school board to use the surplus taxes they over-collect to pay down our bond debt sooner since CUSD deemed that all facilities contemplated in our mitigation agreement (our contract) have been built thus already we have satisfied our contract for facilities (and then some). CUSD decided to use the excess to cover debt service only and no longer keep it to use on unauthorized projects but what was really wonderful was that this same practice was applied districtwide across all 10 Community Facilities (Mello Roos) districts CUSD managed and derived special tax revenue from. A big win for taxpayers who pay 2 times the tax of those living outside of a CFD. There are 13 years left of the Mello Roos payments in Talega. OC Grand Jury Report: Mello-Roos: Perpetual Debt Accumulation and Tax Assessment Obligation