Hartnell Community College District Prepares for November 2016 Bond Measure

In December 2015, the elected board of trustees for the Hartnell Community College District in Salinas began preparing to put a measure on the November 8, 2016 ballot to authorize the district to borrow hundreds of millions of dollars for facilities construction. This would be done by issuing (selling) bonds to investors. The bonds would be paid back over time, with interest, through taxes assessed on property in the college district.

Voters last approved a bond measure for Hartnell Community College District in November 2002, when 65.8% of voters authorized Measure H to borrow $131 million for facilities construction. As of June 6, 2016, Hartnell Community College District has $402 million in debt service through 2049 to repay bond investors for Measure H borrowing. The debt service is high because the district sold Capital Appreciation Bonds, a special kind of bond that results in an unusually high ratio of debt to principal (amount borrowed).

Preparation for a bond measure involves contracting with outside firms for surveys, polls, informational mailers, community outreach meetings, and other activities to maximize the chances that voters will approve the bond measure. The California Attorney General issued an opinion in 2005 declaring that public funds can be used for such activities but issued another opinion in 2016 setting limits on those activities. Community college districts and school districts cannot use public funds for explicit campaign expenditures, but the groundwork for the campaign is done with public funds.

Hartnell Community College District has taken the following steps as of June 6, 2016 toward placing a bond measure on the November 2016 ballot. Not included in the list below are actions that indirectly improve the chances of a bond measure passing, such as economic impact studies for the college and financial advisory services and bond refunding from Measure H that blend into preparation for the new bond measure.

A representative of the Salinas Taxpayers Association serves on the Citizens’ Bond Oversight Committee for Measure H at Hartnell Community College District. We will continue to monitor developments as the college district moves forward with a new proposed bond measure.

1. Authorizing the Investigation of the Feasibility of Local Funding Sources (December 8, 2015)

Staff report: http://www.boarddocs.com/ca/hccd/Board.nsf/goto?open&id=A4LQTD6A8F93

Staff report link to 1 relevant document:

Resolution 15.18 Authorizing Investigation of Feasibility of Local Funding.pdf

2. Presentation by Isom Advisors (a Division of Urban Futures, Inc.) on the Investigation of the Feasibility of Local Funding Sources for Facilities Projects (December 8, 2016)

Staff report: http://www.boarddocs.com/ca/hccd/Board.nsf/goto?open&id=A4T6MY1559A6

Staff report link to 1 relevant document:

Survey Results Presentation_02162016 – Hartnell CCD.pdf

3. Results from the Community Survey Regarding the Feasibility of a Facilities Bond Measure – presented by Isom Advisors (a Division of Urban Futures, Inc.) (February 16, 2016)

Staff report: http://www.boarddocs.com/ca/hccd/Board.nsf/goto?open&id=A6TKF450FFEC

Staff report link to 1 relevant document:

Survey Results Presentation_02162016 – Hartnell CCD.pdf

4. Approval of Agreement with Isom Advisors (a Division of Urban Futures, Inc.) for Bond Financial Consulting Services – $15,000 for Pre‐Election Financial Planning Services, $65,000 for Post‐Election Financial Advisory Services whenever a series of bonds are sold (April 5, 2016)

Staff report: http://www.boarddocs.com/ca/hccd/Board.nsf/goto?open&id=A8AN9G5ED704

Staff report link to 1 relevant document: Isom Advisors Agreement.pdf

5. Approval of $25,000 Agreement with Lew Edwards Group to Provide General Obligation Bond Measure Pre-Election Public Information Campaign and Strategy Services (April 5, 2016)

Staff report: http://www.boarddocs.com/ca/hccd/Board.nsf/goto?open&id=A8AUFW793F58

Staff report links to 3 relevant documents:

Agreement for Public Campaign Strategy Services.pdf

Lew Edwards Group proposal 2016.pdf

Clifford Moss proposal (rejected) 040116F.pdf

6. Approval of $22,000 Agreement with TBWB Strategies to Provide General Obligation Bond Measure Pre-Election Public Information Campaign and Strategy Services (April 19, 2016)

Staff report: http://www.boarddocs.com/ca/hccd/Board.nsf/goto?open&id=A8YNZG5FBA8F

Staff report links to 3 relevant documents:

TBWB Public Information Campaign Strategy Services Proposal.pdf

Clifford Moss proposal 040116F.pdf (rejected)

Lew Edwards Group proposal 2016.pdf (rejected)

Also, see REQUEST FOR PROPOSAL Public Information Campaign and Strategy Services

7. Feasibility of Facilities General Obligation Bond Measure – Study Sessions (May 3, 2016 and May 10, 2016)

Staff reports: http://www.boarddocs.com/ca/hccd/Board.nsf/goto?open&id=A9FP36629ACB (5/3) and http://www.boarddocs.com/ca/hccd/Board.nsf/goto?open&id=A9FP36629ACB (5/10)

Staff report links to 7 relevant documents:

Measure H full text.pdf (2002 bond measure)

Measure H completed projects.pdf

Hartnell CCD Facilities Master Plan 2015-03-03.pdf