The Acalanes Union High School District has published the following legal notice in the Contra Costa Times, warning residents that the Contra Costa County Superior Court could take action that would adversely affect them, unless they respond by Aug. 18 to a complaint seeking to validate the issuance of $15 million in current interest bonds that will exceed the tax rate of $35.58 promised in the 2008 Measure E ballot language:
“NOTICE! YOU HAVE BEEN SUED. THE COURT MAY DECIDE AGAINST YOU WITHOUT YOUR BEING HEARD UNLESS YOU RESPOND BY AUGUST 18, 2014. READ INFORMATION BELOW.
AVISO! USTED HA SIDO DEMANDADO. EL TRIBUNAL PUEDE DECIDER CONTRA USTED SIN AUDIENCIA A MENOS QUE USTED REPONDA ANTES DEL 18 DE AGOSTO DE 2014. POR FAVOR LEA LA INFORMACION QUE SIGUE.
NOTICE TO DEFENDANTS:
ALL PERSONS INTERESTED IN THE MATTER OF THE ISSUANCE BY ACALANES UNION HIGH SCHOOL DISTRICT OF THE ELECTION OF 2008 GENERAL OBLIGATION BONDS AS AUTHORIZED BY THE NOVEMBER 4, 2008 PROPOSITION 39 BOND MEASURE ELECTION APPROVING THE ISSUANCE OF SUCH BONDS IN BALLOT MEASURE E, THE ADOPTION OF A RESOLUTION OF ISSUANCE OF GOVERNMENT CODE BONDS, THE SALE OF SUCH BONDS, AND PROCEEDINGS AND MATTERS RELATED TO THE ABOVE
YOU ARE BEING SUED BY PLAINTIFF:
ACALANES UNION HIGH SCHOOL DISTRICT
TO ALL PERSONS INTERESTED IN THE MATTER, PLEASE TAKE NOTICE that you may contest the legality or validity of the matter by appearing and filing a written answer to the Complaint not later than August 18, 2014.
Pursuant to Code of Civil Procedure section 861.1, any person who contests the legality or validity of the matter will not be subject to punitive action, such as wage garnishment or seizure of real or personal property.
YOU MAY SEEK THE ADVICE OF AN ATTORNEY IN ANY MATTER CONNECTED WITH THE COMPLAINT OR THIS SUMMONS. SUCH ATTORNEY SHOULD BE CONSULTED PROMPTLY SO THAT YOUR PLEADING MAY BE FILED OR ENTERED WITHIN THE TIME REQUIRED BY THIS SUMMONS.
The Acalanes Union High School District has brought this action for the purpose of obtaining a judgment validating documents and processes relating to the issuance of bonds of the District (“District Bonds”) in an aggregate principal amount not-to-exceed $15,000,000 at a projected ad valorem tax rate of not more than $30.00 per $100,000 in assessed value which is projected to result in an ad valorem tax rate in excess of the initial projected tax rate for the issuance as originally projected in estimates included in Ballot Measure E, the November 2008 Proposition 39 Bond Measure Election approving the issuance of such bonds; the adoption of a Resolution Of Issuance Of Government Code Bonds; the execution of a Continuing Disclosure Certificate; and, the sale of such Bonds.
The purpose of the District Bonds is to raise money for the Acalanes Union High School District to fund projects to achieve energy-savings, for new and upgraded instructional facilities, and for needed repairs to school facilities, in addition to the other needs of the District as approved by the electorate voting on Measure E (which includes, to establish a ten-year technology fund, upgrade instructional classroom technology, replace worn, aging roofs, convert obsolete facilities into additional classroom space, upgrade electrical and energy management systems to improve efficiency and repair, construct, equip or upgrade school facilities), and, to pay all necessary legal, financial and contingent costs in connection with the issuance of the District Bonds.
CASE NO.: C14-01298
THE NAME AND ADDRESS OF THE COURT IS:
Contra Costa County Superior Court 725 Court Street Martinez, CA 94553
THE NAME, ADDRESS AND TELEPHONE NUMBER OF PLAINTIFF’S ATTORNEY IS: Sean B. Absher Jeremiah I. Nelson Stradling, Yocca, Carlson & Rauth 44 Montgomery Street, Suite 4200 San Francisco, CA 94104 Telephone: (415) 283-2240 Facsimile: (415) 283-2255
DATE: July 14 , 2014 Clerk, by D. WAGNER, Deputy [Insert Name of Deputy Clerk]
CCT# 5241182 July 18, 24, 31, 2014″
Appeared in: Bay Area News Group on Friday, 07/18/2014
Here are links to the documents the district filed in court.
Complaint seeking court validation to issue $15 million in bonds that will exceed tax rate promised in ballot language:
Exhibit A (July 2008 Board Resolution Authorizing $93 million construction bond measure election):
Exhibit B (December 2008 Board Resolution certifying results of Nov. 8, 2008 Measure E bond election):
Exhibit C (June 2014 Board Resolution authorizing issuance of $15 million in current interest bonds and seeking court validation for the issuance):
Here is my most recent story about the validation issue, which includes some video clips from the June meeting where the board voted 4-1 to issue the bonds and seek court validation for their decision, since it will require property owners to pay more than the tax rate their were promised in the ballot language: http://www.contracostatimes.com/News/ci_26162494/Acalanes-district-seeks-to-validate-bond-issuance-exceeding-promised-tax-rate
I have received phone calls and emails from several area residents who are concerned about this issue and have indicated they may look into filing an answer to the court complaint. However, they are also concerned about the possible filing fee and are unsure how to go about filing an answer. Some believe this case could set a precedent for other districts that may also exceed tax rates promised in their ballot language.
Do you think district residents should contest the bond issuance?