MEASURES ES CITIZENS’ BOND OVERSIGHT COMMITTEE

ANNUAL REPORTING FOR FISCAL YEAR ENDED JUNE 30, 2020

HISTORY OF MEASURE ES• T H E E L S E G U N D O U N I F I E D S C H O O L D I S T R I C T A S S E S S E D I T S FA C I L I T I E S A N D

D E V E LO P E D A LO N G - R A N G E FA C I L I T I E S M A S T E R P L A N ( ” M A S T E R P L A N ” ) TOE N S U R E T H AT FA C I L I T Y R EQ U I R E M E N T S M E E T E S U S D ’ S E D U C AT I O N A LP R O G R A M S A N D O B J E C T I V E S .

• T H E M A S T E R P L A N I S I N T E N D E D TO A D D R E S S F U N C T I O N A L I T Y A N D C A PA C I T Y TOS U P P O R T T H E C O M M U N I T Y ’ S H I G H S TA N DA R D O F E D U C AT I O N A L E XC E L L E N C E -N OT J U S T TO D AY, B U T I N TO T H E F U T U R E .

• TO E X E C U T E T H E M A S T E R P L A N , E S U S D P R O P O S E D M E A S U R E E S TO E LS E G U N D O VOT E RS T H AT W I L L A L LOW E S U S D TO CO M P L E T E T H EM O D E R N I Z AT I O N , C O N S T R U C T I O N A N D R E CO N S T R U C T I O N O F P R OJ E C T S A SE N V I S I O N E D I N T H E M A S T E R P L A N .

HISTORY OF MEASURE ES:BALLOT LANGUAGE

• TO UPGRADE CLASSROOMS, SCIENCE LABS, LIBRARIES, CAREER TRAINING FACILITIES, AND INSTRUCTIONAL

TECHNOLOGY TO SUPPORT STUDENT ACHIEVEMENT IN SCIENCE, TECHNOLOGY, ENGINEERING, ART, MATH,

IMPROVE STUDENT SAFETY, ACQUIRE, CONSTRUCT/REPAIR CLASSROOMS, FACILITIES, SITE/EQUIPMENT,

REPAIR ROOFS, PLUMBING/ELECTRICAL SYSTEMS SHALL THIS EL SEGUNDO UNIFIED SCHOOL DISTRICT

MEASURE AUTHORIZING $92,000,000 IN BONDS AT LEGAL RATES LEVYING 4.3 CENTS/$100 ASSESSED VALUE,

$5,500,000 ANNUALLY WHILE BONDS ARE OUTSTANDING TO BE ADOPTED WITH INDEPENDENT OVERSIGHT,

NO MONEY FOR ADMINISTRATORS SALARIES, ALL MONEY STAYING LOCAL.

HISTORY OF MEASURE ES:CONT.

• I N N OV E M B E R 2 0 1 8 , 6 3 . 3 2 % O F V OT E R S A P P R OV E D M E A S U R E E S , AU T H O R I Z I N G$ 9 2 , 0 0 0 , 0 0 0 I N S C H O O L C O N S T R U C T I O N B O N D S .

• T H E B O N D M E A S U R E W I L L F U N D

• T H E R E PA I R A N D / O R R E P L A C E M E N T O F S C I E N C E L A B S , L I B R A R I E S A N DC A R E E R T R A I N I N G FA C I L I T I E S .

• U P G R A D E I N S T R U C T I O N A L T E C H N O LO GY TO S U P P O R T S T U D E N TA C H I E V E M E N T.

• U P G R A D E S A N D R E PA I R S TO C L A S S R O O M S , FA C I L I T I E S , S I T E S / E Q U I P M E N T.

• R E PA I R D E T E R I O R AT I N G R O O FS , P LU M B I N G A N D E L E C T R I C A L S Y S T E M S .

• T H E U P G R A D E O F C L A S S R O O M S I S A L S O N E C E S S A RY TO S U P P O R T H I G H Q UA L I T YM AT H , S C I E N C E , P E R F O R M I N G A R T S , A N D E N G I N E E R I N G P R O G R A M S .

HISTORY OF MEASURE ES:CONT.

A S R EQ U I R E D BY L AW, E S U S D B OA R D O F E D U C AT I O N E S TA B L I S H E D A C I T I Z E N S ’B O N D OV E R S I G H T C O M M I T T E E ( “ C B O C ” ) .

• T H E C B O C I S CO M P O S E D O F CO M M U N I T Y L E A D E R S W I T H E X P E R T I S E I NB U S I N E S S M A N A G E M E N T, C O N S T R U C T I O N , F I N A N C E A N D A C C O U N T I N G ,E D U C AT I O N , L E G A L , R I S K M A N A G E M E N T, LO C A L G OV E R N M E N T A N DC O M M U N I T Y L E A D E R S H I P.

• C H A R G E D W I T H T H E R E S P O N S I B I L I T Y TO A S S U R E V OT E RS T H AT B O N D P R O C E E D SA R E E X P E N D E D O N LY F O R

• C O N S T R U C T I O N

• R E C O N S T R U C T I O N

• R E H A B I L I TAT I O N

• R E P L A C E M E N T

O F D I S T R I C T FA C I L I T I E S I N C O M P L I A N C E W I T H T H E B A L LOT L A N G UA G E

A P P R OV E D BY V OT E R S .

PURPOSE OF COMMITTEEC O N S I S T E N T W I T H T H E R E Q U I R E M E N T S O F P R O P O S I T I O N 3 9 , T H E C I T I Z E N S ’ B O N D OV E R S I G H T C O M M I T T E E M O N I TO R S E X P E N D I T U R E S O F M E A S U R E E S .

• T H E C B O C P R OV I D E S T H E OV E R S I G H T A S D E T E R M I N E D I N B OT H T H E V OT E R - A P P R OV E D B O N D M E A S U R E S A N D A S D I R E C T E D BY P R O P O S I T I O N 3 9 .

• P R O P O S I T I O N 3 9 H A S S P E C I F I C R E Q U I R E M E N T S O F T H E B OA R D O F E D U C AT I O N , I N PA R T I C U L A R , T H E E S TA B L I S H M E N T O F A C I T I Z E N S ’ OV E R S I G H T C O M M I T T E E .

IN GENERAL TERMS, THE CBOC REVIEWS BOND PROGRAM EXPENDITURES AND OUTSIDE AUDITS TO MEET THE CONSTITUTIONAL REQUIREMENTS OF ENSURING:

• BOND REVENUES ARE EXPENDED ONLY FOR CONSTRUCTION, RECONSTRUCTION, REHABILITATION, OR REPLACEMENT OF SCHOOL FACILITIES. (ARTICLE XIIIA, SECTION 1(B)(3) OF THE CALIFORNIA CONSTITUTION.)

• NO FUNDS ARE USED FOR ANY TEACHER AND ADMINISTRATIVE SALARIES OR OTHER SCHOOL OPERATING EXPENSES. (ARTICLE XIIIA, SECTION 1(B)(3)(A) OF THE CALIFORNIA CONSTITUTION.)

COMMITTEE MEMBERS• RYAN BALDINO – C H A I R

P A R E N T O R G U A R D I A N O F S T U D E N T E N R O L L E D M E M B E R

• CHERYL SMITH – V I C E C H A I RP A R E N T O R G U A R D I A N O F A D I S T R I C T S T U D E N T A N D

A C T I V E I N A P A R E N T - T E A C H E R O R G A N I Z A T I O N

• LANCE BUSTRUMB U S I N E S S M E M B E R

• STUART CARROLLC O M M U N I T Y - A T - L A R G E M E M B E R

• JENNIFER J IRKOVSKYB O N A - F I D E T A X P A Y E R O R G A N I Z A T I O N M E M B E R

• SCOTT PATTERSONC O M M U N I T Y - A T - L A R G E M E M B E R

• DR. WILLIAM WATKINSS E N I O R C I T I Z E N O R G A N I Z A T I O N M E M B E R

• NO EMPLOYEES OR OFFICIALS OF, NO VENDORS,CONTRACTORS OR CONSULTANTS FOR ESUSD.

• ONE- OR TWO- YEAR TERM, NO MORE THAN THREECONSECUTIVE TERMS (IN OTHER WORDS, THEMAXIMUM NUMBER OF CONSECUTIVE YEARSSERVED IS SIX YEARS).

• MEMBERS ARE VOLUNTEERS (NO COMPENSATIONOR FINANCIAL INTERESTS).

• TO FIND OUT MORE ABOUT THE CBOC AND REVIEWITS MEETING AGENDAS AND MINUTES, BYLAWS,PRESENTATION DOCUMENTS, PROJECT BUDGETS,AND THE VOTER-APPROVED BOND LANGUAGE,PLEASE SEE: HTTPS://WWW.ELSEGUNDOUSD.NET/AND UNDER “COMMUNITY,” VISIT MEASURE ES –GENERAL OBLIGATION BOND.

ROLES AND RESPONSIBILITES

• T I MI NG FO R I S S UANCE O F B O NDS

• D E T E R MI NI NG H OW B O ND F U N DS A R E TO B E S P E NT, T I M I NG , T E R MS A N D P R I OR I T I ES

• R ECO MME NDAT I ONS A N D C O OR DI N AT I O N W I T H FA C I L I T I ES A DV I S ORY COMMI T T E E

• M A X I MI Z E E F F I C I E N C Y O F M E A S U R E E S F U N DS

• C B OC S U P P ORT• F I N A N C I A L A N D P R O G R E S S R E P O R T S

• S U B M I T F I N A N C I A L A N D P E R F O R M A N C E A U D I T S

• T E C H N I C A L A N D A D M I N . S U P P O R T

• B R O W N A C T A G E N D A A N D M I N U T E S

• R E S P O N D TO C B O C I N Q U I R I E S , R E Q U E S T S A N D R E C O M M E N D AT I O N S

• W E B S I T E I N F O R M AT I O N P O S T I N G

CIT IZENS’ BOND OVERSIGHT COMMITTEE

• R E P O RT O N C O MP L I A NCE O F M EA S U R E E S B O N D - R E L AT E D E X P E N D I T U R ES• R E V I E W D E TA I L E D B O N D P R O C E E D S

A N D E X P E N D I T U R E A C T I V I T I E S• R E V I E W A N N UA L I N D E P E N D E N T

F I N A N C I A L A N D P E R F O R M A N C E A U D I T S• I N S P E C T S C H O O L FA C I L I T I E S A N D

G R O U N D S - A S WA R R A N T E D• R E V I E W A N Y D E F E R R E D M A I N T E N A N C E

P R O P O S A L S O R P L A N S

• R E V I E W E S U S D M E A S U R ES TO M A X I MI Z E R E V E NUES BY I M P L E ME NT I NG C O S T S AV I NG S

• E D U C AT E C O MMU NI T Y A N D P ROV I DE T R A N S PA R E NC Y• W E B S I T E U P D AT E S• P U B L I C Q U A R T E R LY M E E T I N G S• A N N UA L R E P O R T TO B O A R D O F

E D U C AT I O N

ROLES AND RESPONSIBILITES

FACILITY ADVISORY COMMITTEE

• MAKES RECOMMENDATIONS TO THE SUPERINTENDENT REGARDING DESIGN AND CONSTRUCTION FOR THE IMPLEMENTATION OF THE FACILITIES MASTER PLAN.

• INCLUDES INDUSTRY EXPERTS, UNION REPRESENTATION, DISTRICT MANAGEMENT.

BOARD OF EDUCATION

• SUPERINTENDENT MAKES RECOMMENDATIONS TO THE BOARD OF EDUCATION REGARDING TIMING, DESIGN AND SPENDING THE IMPLEMENTATION FOR THE FACILITIES MASTER PLAN.

• BOARD OF EDUCATION MAKES FINAL DECISIONS ON SPENDING AND DESIGN FOR THE IMPLEMENTATION OF THE FACILITIES MASTER PLAN.

CITIZENS’ BOND OVERSIGHT COMMITTEE

• EVALUATES THE SPENDING ON THE FACILITIES MASTER PLAN TO ENSURE IT IS ALIGNED WITH THE VOTER-PASSED MEASURE ES AND MEETS THE REQUIREMENTS OF PROPOSITION 39.

• COMPRISED OF COMMUNITY MEMBERS FROM SPECIFIC SUBGROUPS OF THE COMMUNITY TO ENSURE MULTIPLE PERSPECTIVES.

MEASURE ES BOND SALES

YEAR BOND SALES DEBT SERVICEINTEREST INCOME

FACILITIES, ACQUISITION,

AND MAINTENANCE EXPENDITURES FUND BALANCE

2018-19 27,000,000 (339,725) 8 ,043 (137,255) 26,531,063 2019-20 - - 449,857 (5 ,156,518) 21,824,402 2020-21 33,000,000 N/A N/A N/A N/A2021-22 32,000,000 N/A N/A N/A N/A

92,000,000 (339,725) 457,900 (5 ,293,773) 21,824,402

SOLD29%

NON-ISSUED71%

MEASURE ES VOTER-APPROVED BOND SALES

Sold Non-issued

MEASURE ES EXPENDITURESFACILITIES, ACQUISITION, AND MAINTENANCE*

*THE TOTAL EXPENDITURES PAID THROUGH THE FISCAL YEAR-ENDED JUNE 30, 2020 IS $5,156,518.38.

Arena/ Virtual High School, 6,945.60 Center Street

Elementary School, 503,511.98

District Office and Overall Bond Program Management Costs,

518,091.40

Eagles' Nest Preschool, 65,244.28

El Segundo High School, 2,117,915.36

El Segundo Middle School, 1,039,160.72

Richmond Street Elementary School,

905,649.04

MEASURE ES EXPENDITURES FACILITIES, ACQUISITION, AND MAINTENANCE*

*THE TOTAL EXPENDITURES PAID THROUGH THE FISCAL YEAR-ENDED JUNE 30, 2020 IS $5,156,518.38.

Modernization Total,

2,380,422.42

New Construction Total,

56,975.00

Next Generation Classroom

Upgrades Total,1,661,328.61

Overall Bond Program

Management Costs Total, 423,546.91

Safety and Security Total,

634,245.44

INDEPENDENT AUDIT

INDEPENDENT AUDIT:CONT.

FINDING ON COMPLIANCE

BASED ON THE REVIEW AND OBSERVATIONS OF THE CITIZENS’ BOND OVERSIGHT COMMITTEE, WE FIND THAT THE EL SEGUNDO UNIFIED SCHOOL DISTRICT IS IN COMPLIANCE WITH THE REQUIREMENTS OF ARTICLE XII I A, SECTION 1(B)(3) OF THE CALIFORNIA CONSTITUTION AND THAT FUNDS ARE BEING USED FOR THE PURPOSES SPECIFIED IN THE BALLOT LANGUAGE.

WORD OF THANKSCBOC WOULD LIKE TO GIVE A

SPECIAL THANKS TO:

• DR. MELISSA MOORE – S U P E R I N T E N D E N T

• KIM LINZ – C H I E F B U S I N E S S O F F I C I A L

• DR. DYLAN FARRIS – E X E C U T I V E D I R E C TO R O F H U M A N R E S O U R C E S A N D FA C I L I T I E S

• ALI RABIEI – D I R E C TO R O F O P E R AT I O N S

• SHANNON LUTTERLOH – B O N D C O N T R A C T S P E C I A L I S T/ A C C O U N TA N T

• PREETI D’SOUZA – P R O G R A M M A N A G E R , T E L A C U C O N S T R U C T I O N M A N A G E M E N T

QUESTIONS?PLEASE REFER TO

HTTPS://WWW.ELSEGUNDOUSD.NET/AND UNDER “COMMUNITY,” VISIT MEASURE ES – GENERAL OBLIGATION BOND.