o Lee STAFF REPORT HONORABLE MAYOR AND CITY COUNCIL RECOMMENDED ARGUMENT IN FAVOR OF MEASURE K-14, THE GENERAL OBLIGATION BOND ISSUE BACKGROUND

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1 STAFF REPORT TO: FROM: SUBJECT: HONORABLE MAYOR AND CITY COUNCIL ROBERT PERRAULT, CITY MANAGER RECOMMENDED ARGUMENT IN FAVOR OF MEASURE K-14, THE GENERAL OBLIGATION BOND ISSUE BACKGROUND Following a public hearing held on July 21 S \ the City Council adopted the Ordinance placing Measure K-14 on the ballot. The measure, if approved by the voters, would authorize the issuance of up to $48,000,000 in tax exempt bonds for the rehabilitation of local streets. The City Council also adopted a resolution setting the timeframes for the submittal of arguments favoring or opposing the measure, as well as rebuttals, to the City Clerk. As the author of Measure K-14, the Council has the ability to file an argument supporting the measure with the City Clerk. This argument would be included in the election materials produced and distributed by the San Luis Obispo County Clerk-Recorder's Office. Attached to this staff report is a copy of a recommended argument supporting the measure. This argument was developed collaboratively by management staff working with the City's opinion and public education consultants. Staff is recommending that the Council by' motion authorize the submittal of the Argument in Favor of Measure K-14. DISCUSSION At the last Council meeting, staff had distributed a "Draft Argument in Favor" to the Council for its consideration. Since the original draft was distributed, management staff has had the opportunity to review the draft with Ms. Catherine Lew, principal with Lew Edwards Group (the recently retained public information firm) arid with Richard Bernard from FM3 (the public research firm). Based on this input, management staff has revised the draft "Argument in Favor". (Please see Attachment 1.) In developing the revised draft, staff carefully incprporated the input received from Ms. Lew and Mr. Bernard to craft an argument likely to resonate well with voters in November. The deadline for submission of the argument to the City Clerk is by the close of business on Tuesday, August 5, The argument is to contain 110 more than 300 words and should be signed by the Mayor and each of the four Council Members. ROBERT PERRAULT CITY MANAGER Meeting : August 4, 2014 Please Review for the Possibility of a Potential Conflict of Interest: llrnone Identified by Staff 0 Bright Peterson 0 Marshall o Lee 0 Nicolls Agenda Item No.

2 .Staff Report: Discussion Regarding Argument In Favor Of Measure K-14 August 4, 2014 Page 2 ALTERNATIVES The Council has the following alternatives to consider: 1. The Council could authorize and agree to sign the Argument in Favor of Measure K-14; 2. The Council could make minor changes to the Argument in Favor of Measure K-14; 3. The Council could decide not to submit an Argument; or 4. The Council could provide staff with additional direction. RECOMMENDED ACTION It is recommended that the City Council, by motion, authorize and agree to individually sign the Argument in Favor of Measure K-14. FISCAL IMPACT There is no fiscal impact associated with the ~uthorization to submit and individually sign the Argument in Favor of Measure K-14. PUBLIC NOTIFICATION The agenda was posted in accordance with the Brown Act. Attachments 1. Draft Argument in Favor of Measure K Form of Statement to be Filed by Authors of Arguments 3. Authorization for Another Person to Sign Rebuttal Argument 4. Notice to Voters

3 Attachment 1 Argument in Favor of Measure K-14 Rehabilitate our Grover Beach streets - Vote YES on K-14! Grover Beach's residential and major streets are pitted with potholes and cracks. Our City's street system includes 45 centerline miles -over 10,000,000 square feet of asphalt- constructed decades ago on a sand base. Independent experts evaluated our streets and found that over 65% of them are in "poor to failed" condition, the majority of which are residential streets. Experts say the entire street system will fail in 6 to 8 years. Grover Beach's budget is the smallest in the County and grabs of $5,000,000 over the last five years, means the to repair streets. bined with the Sacramento money have sufficient funding it needs YES on K-14 makes it easier to our quality of life. pedestrians, and bicyclists. YES on K-14 is fisc and major streets before they get worse and ignated Grover Beach Street Improvement rehabilitation. property values throughout the City. The Grover Beach Mayor and Council unanimously urge your "YES" vote! For factual information about Measure K-14, visit OO word~:;with '" GrOver. Beach';;,; "counted 'qsjqn~'wof'd ~:~(1~h i~t=a~ce,arid 'ik-11 " cou.n}ec[,as on~ 'wor,d ineqc.hjnstqnce. fheju(e, "Arg'!l.m~n!!1!.Fayor oflvf.~a,s,il!:e!:(:l{(~,n.ot co.1}n!eq.j

4 Attachment 2 ARGUMENTS FORM OF STATEMENT TO BE FILED BY AUTHORS OF ARGUMENTS Ali arguments conce<rning measures filed pursuant to Division 9, Chapter 3 (beginning with 9200) of the Elections Code shall be accompanied by the following form statement to be signed by each proponent, and by each author,if different, of the argument: The undersigned proponent(s) or author(s) of the (primary/rebuttal) argument (in favor of/against) ballot proposition (Measure K-14) at the General Municipal Election for the City of Grover Beach to be held on Tuesday, November 4, 2014 hereby state that the argument is true and correct to the best of (his/her/their) knowledge and belief. I Name of organization or entity for which the argument is being submitted (if applicable): Note: All Authors Must: Print his/her name and sign this form (EC 9600) Print his/her name and sign the Argument itself (EC 9283) Print his/her name and sign the Rebuttal Argument itself (EC 9285) Pursuant to Election Code 9282, printed arguments submitted to the voters shall be titled either "Argument In Favor Of Measure K~14" or "Argument Against Measure K~14". Likewise, printed rebuttal arguments submitted pursuant to Election Code 9285 shall be titled either "Rebuttal To Argument In Favor Of Measure K-14" or "Rebuttal to Argument Against Measure K-14".

5 Attachment 3 ARGUMENTS AUTHORIZATION FOR ANOTHER PERSON TO SIGN REBUTTAL ARGUMENT The following majority of authors of the Argument o In Favor of 0 Against Measure K-14 authorize the following person(s) to prepare, submit or sign the Rebuttal to the Argument o In Favor of 0 Against Measure K--14 for the City of Grover Beach, General lviunicipal Election to be held on Tues, November 4, s of a majority of the authors of the Argument o In Favor of 0 Against Measure K-14 are required: Name (Print) Name (Print) Name (Print) The following authors are authorized to prepare, submit or sign the Rebuttal to the Argument o In Favor of 0 Against Measure K-14, Name of organization or entity for which the argument is being submitted (if applicable): Attach this form to the Form of Statement of Authors Form submitted with the Argument o In Favor of 0 Against Measure K-14

6 Attachment 4 NOTICE TO VOTERS OF DATE AFTER WHICH NO ARGUMENTS FOR OR AGAINST A CITY MEASURE MAY BE SUBMITTED TO THE CITY CLERK NOTICE IS HEREBY GIVEN that the General Municipal Election is to be held in the City of Grover Beach on Tuesday, November 4,2014, at which there will be submitted to the voters the following measure: CITY OF GROVER BEACH MEASURE K-14 GROVER BEACH STREET REHABILITATION; SAFETY IMPROVEMENT BOND MEASURE: To rehabilitate/resurface deteriorating residential and major streets to improve drivability; maintain emergency response times; enhance safety for pedestrians, bicyclists, drivers, neighborhood school crosswalks; and promote economic/job growth; shall the City incrementally issue up to $48,000,000 of bonds at taxexempt interest rates, requiring funds go directly into the Street Construction Designated Fund with all funds used exclusively for Grover Beach streets; subject to independent audits/citizens' oversight committee? YES NO NOTICE IS FURTHER GIVEN that pursuant to Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, the legislative body of the City, or any member or members thereof authorized by the body, or any individual voter or bona fide association of citizens, or any combination of voters and associations, may file a written argument, not to exceed 300 words in length, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument, for or against the City measure. NOTICE IS' FURTHER GIVEN that, based upon the time reasonably necessary to prepare and print the arguments and sample ballots for the election, the City Clerk has fixed Tuesday, August 5, 2014, during normal office hours, as posted, as the date after which no arguments for or against the City measure may be submitted to the clerk for printing and distribution to the voters as provided in the Article 4. Arguments shall be submitted to the City Clerk, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument, at the City Hall, Grover Beach, California. Arguments may be changed or withdrawn until and including the date fixed by the City Clerk. NOTICE IS FURTHER GIVEN that the City Council had determined that rebuttal arguments, not to exceed 250 words in length, as submitted by the authors of the opposing direct arguments, may be filed with the clerk, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization. the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument, not more than 10 days (by Friday. August 15, 2014) after the

7 final date for filing direct arguments. Notice to Voters of After Which No Arguments For or Against City Measures May be Submitted to the City Clerk for the November 4, 2014 General Municipal Election Page 2 NOTICE IS FURTHER GIVEN that any ordinance, impartial analysis, or direct argument filed under the authority of the elections code will be available for public examination in the clerk's office for not less than 1 a-calendar days from the deadline for the filing of the arguments and analysis. Any rebuttal argument filed under the authority of the elections code will be available for public examination in the clerk's office for not less than 1 a-calendar days from the deadline for filing rebuttal arguments. IslDonna L. McMahon, City Clerk d: Tuesday, July 22,2014 Posted at City Hall: Tues, July 22, 2014