081611 Kelseyville Unified Trustees agenda packet.pdf

8/6/2019 081611 Kelseyville Unified Trustees agenda packet.pdf

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AGENDA

KELSEYVILLE UNIFIED SCHOOL DISTRICTREGULAR MEETING OF BOARD OF TRUSTEES

Agenda and backup documentation can be found on the district website at:www.kusd.lake.k12.ca.us

Date: August 16, 2011 Place: Kelseyville Unified School DistrictTime: Open Session 6:00 pm Board Room

(6:00-7:00 Board Technology Workshop) 4410 Konocti RoadKelseyville CA 95451

I: CALL TO ORDER:

Establish Quorum

II: BOARD TECHNOLOGY WORKSHOP 6:00- 6:50 pm presented by Bill Grossner

III: BREAK 6:50-7:00 pm

IV: RECONVENE TO OPEN SESSION 7:00 pm

Pledge of Allegiance

V: APPROVAL OF AGENDA:

VI: PUBLIC REMARKS AND CONCERNS:NOTE: At this point on the agenda, opportunity is provided for an individual or a representative of a

group to make statements to the Board regarding an item not listed on the agenda. A speaker shall belimited to 5 minutes (Board Policy 9351). The Board will not take action on an item introduced during this

portion of the agenda, as this would constitute an illegal act on the part of the Board.

VII: INFORMATION ITEMS AND REPORTS:

1. Riviera Elementary/Kelseyville Elementary PTO Representative Report2. CFO Report-Tiffany Kemp3. Superintendents Report Dave McQueen

VIII: CONSENT AGENDAAny item may be removed to Action and Discussion by the request of a single Board

Member.

A. Approve Minutes from July 12, 2011Board MeetingB. Approve Minutes from July 15, 2011 Board MeetingC. Approve Minutes from August 9, 2011 Board MeetingD. Approve Purchase Order Encumbering TransactionsE. Approve Warrant OrdersF. Approve Placement of Classified Employees on 39 Month Rehire List
http://www.kusd.lake.k12.ca.us/http://www.kusd.lake.k12.ca.us/http://www.kusd.lake.k12.ca.us/


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G. Offer Extra Curricular Cross Country Coaching Position to Jonathon Thorn for the2011/2012 School Year

H. Approve Varsity/Junior Varsity Volleyball Overnighter for October 15-16 2011I. Approve Surplus Property List of Computers for the District and Transfer of Floor

Scrubber from Gard Street site to MVMS site.J. Approve Surplus Property Equipment Gun Shoot Away Machine at KHS

IX: ACTION DISCUSSION

1. Approve/Disapprove Proposal for Consulting Services Related to Trustee AreaBoundaries Submitted By Thomas M. Griffin Law Offices

2. Approve/Disapprove Creating the Following New Classified Positions Based on theApproved Fiscal Recovery Plan Priority Restorations List:

1.0 FTE Secretary 1 200 days KHS PCN 355

1.0 FTE Secretary I 200 days KES/MVMS Split PCN 356.46875 FTE Secretary I 200 days Riviera Elementary PCN 3571.0 FTE Custodian I 260 days KHS PCN 358.46875 FTE Custodian I 180 days Riviera Elementary PCN 359.46875 FTE Account Clerk 260 days District Office PCN 360

3. Approve/Disapprove Administrative Designee and Athletic Director Stipends to theFollowing:

Tavis Perkins Athletic Director at MVMS $1,579.00Steve Olson Athletic Director at KHS $5,060.00

Joyce Paiva Administrative Designee at MVMS $5,060.00James Cochrane Administrative Designee at IMHS& RHS $5,060.00Joe DelPrete Administrative Designee at K.C. & CDS $5,060.00Barbie Gleason Administrative Designee District Categorical $5,060.00Debbie Ingalls Administrative Designee at KHS $2,530.00

4. Approve/Disapprove Purchase of Two Vans for Food Service Department fromThurston Honda in Ukiah P.O.12-00220 $39,575.23 (To be paid from cafeteria funds)

5. Approve/Disapprove Award Low Bid Painting Bid to Affordable 1 Painting Inc. for$148,200

6. First Reading Board Policy 3016 Fund Balance Policy7. Offer Resolution 11/12-02 Board Authorization for Specific Teaching Assignments

for Erik Larsen to Teach Physics for the 2011/2012 School Year

8. Offer Resolution 11/12-03 Board Authorization for Specific Teaching Assignmentsfor Cora Carrier to Teach Algebra I for the 2011/2012 School Year


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9. Offer Resolution 11/12-04 Board Authorization for Specific Teaching Assignments

for Matt Carpenter to Teach English II & IV for the 2011/2012 School Year

10.Offer Resolution 11/12-05 Authorizing Refinancing of Measure X Bond11.Discussion: Board Policy 9250Remuneration and Reimbursement, Other Benefits

X: ADVANCED AGENDA:

XI: ADJOURNMENT to meet again, unless otherwise announced, on Tuesday, September20, 2011 at 7:00 p.m. at Kelseyville Unified School District Office Board RoomKelseyville, California.


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CONSENT AGENDA

August 16, 2011

The Superintendent recommends approval of the following items:

A. Approve Minutes from July 12, 2011 Board MeetingB. Approve Minutes from July 15, 2011 Board MeetingC. Approve Minutes from August 9, 2011 Board MeetingD. Approve Purchase Order Encumbering Transactions

E. Approve Warrant Orders

F.

Approve Placement of the Following Classified Employees on the 39 Month Rehire List:

Cheryl Hale 3.0 hr per day Instructional Aide

Janice Norton 3.0 Hr. Per day Instructional Aide

Debra Davis 1.5 hr. per day Kitchen Aide

G. Offer Extra Curricular Cross Country coaching Position to Jonathan Thorn for the2011/2012School Year

H. Approve Varsity/Junior Varsity Volleyball Overnight Trip for:

October 15, 2011 October 16, 2011 to Mare Island in Vallejo

I. Approve Surplus Property List of District Wide Computers and Transfer of a Floor Scrubber

from the Gard Street site to the MVMS site.

J. Approve Surplus Property Equipment Gun Shoot Away Machine at KHS


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MINUTES

KELSEYVILLE UNIFIED SCHOOL DISTRICTREGULAR MEETING OF BOARD OF TRUSTEES

Date: July 12, 2011 Place: Kelseyville Unified School District OfficeTime: Closed Session 6:00 pm Board RoomOpen Session 7:00 pm 4410 Konocti Road

Kelseyville CA 95451

I: CALL TO ORDER The meeting was called to order at 6:04 pm by President Winer.

Members Present: Rick Winer PresidentJohn DeChaine Vice PresidentChris Irwin ClerkPeter QuartaroloGary Olson

II: CLOSED SESSION:

CONFERENCE WITH LABOR NEGOTIATOR: DAVID MCQUEEN

Employee Organizations: California School Employees AssociationKelseyville Unified Teachers AssociationUnrepresented Employees

III: RECONVENE TO OPEN SESSION: The Board reconvened to open session at 7:00 pm.Mr. Winer reported no action was taken in closed session.

IV: APPROVAL OF AGENDA- Peter Quartarolo requested that Action Discussion item #13be removed for now. A motion was made by John DeChaine, seconded by Gary Olsonand the motion carried to approve the agenda with the removal of item #13.

V: PUBLIC REMARKS AND CONCERNS-There was no public input

VI: INFORMATION ITEMS AND REPORTS:

1. Riviera Elementary/Kelseyville Elementary PTO Representative Report-Absent2. CFO Report-Tiffany Kemp - Absent3. Superintendents Report Dave McQueen Reported on District Issues

VII: CONSENT AGENDA A motion was made by Peter Quartarolo, seconded by RickWiner and the motion carried to approve the Consent Agenda as presented.

A. Approved Minutes from May 14, 2011 Board MeetingB. Approved Minutes from June 8, 2011 Board MeetingC. Approved Minutes from June 14, 2011 Board Meeting

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D. Approved Minutes from June 18, 2011 Board MeetingE. Approved Minutes from June 21, 2011 Board MeetingF. Approved Purchase Order Encumbering TransactionsG. Approved Warrant OrdersH. Approved Termination of Probationary Classified Employee

VIII: ACTION DISCUSSION

PUBLIC HEARING Opened at 7:45 pm Closed at 8:00 pm

USE OF FLEXIBLE CATEGORICAL FUNDS

1. Approved/Disapprove Directing Governmental Financial Strategies to Explore thePotential of Refinancing Measure X Bonds

A motion was made by Gary Olson, seconded by Peter Quartarolo and the motion

carried to direct Governmental Financial Strategies to Explore the Potential ofRefinancing Measure X Bonds.

2. Approved/Disapprove Use of Flexible Categorical Funds and Plan for SBX3 4 TierIII Flex Funds

A motion was made by Chris Irwin, seconded by John DeChaine and the motioncarried to approve the use of Flexible Categorical Funds and Plan for SBX3 4 Tier IIIFlex Funds

3. TabledApprove/Disapprove Purchase of 7 ELO Touch Computers for the FoodService Department P.O. 12-00091 for $11,148.84 (To be paid from Cafeteria Funds)

A motion was made by Gary Olson, seconded by Chris Irwin and the topic wasopened for discussion. Following discussion Mr. Olson and Mr. Irwin withdrew theirmotion and second. Chris Irwin then made a motion to table this item. The motionwas seconded by Peter Quartarolo and the motion carried.

4. Approved/Disapprove Purchase of Security Cameras and GPS Tracking Systems forall Buses in the District. Funding for the Purchases is in the 2011-2012 TechnologyBudget. PO 12-00080 $15,550.81

A motion was made by Chris Irwin, seconded by John DeChaine and the motioncarried to approve the purchase of security cameras and GPS tracking systems for allbuses in the District.

5. Offered Elementary Principal Position to Stephen Riave Effective July 1, 2011(Pending Fingerprint Clearance)

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A motion was made by John DeChaine, seconded by Peter Quartarolo and the motioncarried to approve offering the Elementary Principal Position to Stephen Riaveeffective July 1, 2011.

6. Offered Full Time School Nurse Position to Barbara Barnaby Effective July 28, 2011PCN 18 (Pending Fingerprint Clearance)

A motion was made by Peter Quartarolo, seconded by Gary Olson and the motioncarried to approve offering the School Nurse Position to Barbara Barnaby effectiveJuly 28, 2011

7. Offered Full Time Math Teacher Position to Kimberly Burke Effective August 29,2011 PCN 140 (Pending Fingerprint Clearance)

A motion was made by Gary Olson, seconded by Peter Quartarolo and the motioncarried to approve offering the Math Teacher Position to Kimberly Burke effective

August 29, 2011

8. Offer Full Time Music Teaching Position to Pamela Paige-Barnum Effective August29, 2011 PCN 200 (Pending Fingerprint Clearance)

A motion was made by Peter Quartarolo, seconded by Gary Olson and opened fordiscussion. Following discussion Dr. Quartarolo withdrew his motion and Mr. Olsonwithdrew his second. The item then died.

9. Offered Certificated Extra Curricular Girls Varsity Soccer Position to Cheryl Mostinfor the 2011/2012 School Year

A motion was made by Chris Irwin, seconded by Peter Quartarolo and the motioncarried to approve Cheryl Mostin as Varsity Soccer Coach for the 2011/2012 schoolyear.

10.Approved/Disapprove Intervention Teaching Position at Kelseyville ElementarySchool for the Contract period of August 29, 2011 through December 16, 2011(Funded through restricted categorical funds)

A motion was made by John DeChaine, seconded by Peter Quartarolo and the motioncarried to approve an Intervention Position from August 29, 2011 December 16,

2011

11.Approved/Disapprove Two 0.5 FTE Certificated EL Math Positions One Position tobe at KHS and One at MVMS (Restricted Categorical Funds)

A motion was made by John DeChaine, seconded by Peter Quartarolo and the motioncarried to approve two 0.5 Certificated EL Math

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12.Approved/Disapprove Two Special Needs Aide Positions 3.5 hr 181 days each PCN352 and PCN 353

A motion was made by John DeChaine, seconded by Peter Quartarolo and the motioncarried to approve two Special Needs Aide Positions

13.First Reading BP 8555 Job DescriptionDistrict Attendance SpecialistThis item was removed from the agenda.

14.Offered Resolution 11/12-01Eliminating and Reducing Certain Positions in theClassified Service

Peter Quartarolo offered Resolution 11/12-01 Elimination and Reducing CertainPositions in the Classified Service. The Resolution passed 4 to 1 with roll call vote:

Irwin; nay Olson; aye Winer; aye DeChaine; aye Quartarolo; aye

15.Approved/Disapprove Perkins GrantA motion was made by Peter Quartarolo, seconded by Rick Winer and the motioncarried to approve the Perkins Grant.

16.Approved/Disapprove Setting Special Board Meeting on August 9, 2011A motion was made by John DeChaine, seconded by Chris Irwin and the motioncarried to set a Special Board Meeting for August 9, 2011 with a closed session at

6:00 pm and open session at 7:00 pm

IX: ADVANCED AGENDA:

Chris Irwin requested Discussion regarding the revision of Board Policy 9250 be placedon the next agenda.

X: ADJOURNMENT-The Board adjourned at 8:08 pm to meet again, unless otherwiseannounced, on Tuesday, August 16, 2011 at 7:00 p.m. at Kelseyville Unified SchoolDistrict Office Board Room Kelseyville, California.

SecretaryAdopted and ordered into the records of theDistrict August 16, 2011

, Clerk

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MINUTESKELSEYVILLE UNIFIED SCHOOL DISTRICT

REGULAR MEETING OF BOARD OF TRUSTEES

Date: July 15, 2011 Place: Kelseyville Unified School District OfficeTime: Open Session: 8:00 am Board Room

4410 Konocti RoadKelseyville CA 95451

I: CALL TO ORDER-The meeting was called to order at 8:01 am by President Winer

Members Present: Rick Winer PresidentChris Irwin ClerkPeter QuartaroloGary Olson Arrived at 8:03 amJohn DeChaine Absent

II: APPROVAL OF AGENDA A motion was made by Chris Irwin, seconded by Peter Quartarolo and the

motion carried to approve the Agenda as presented.

III: PUBLIC REMARKS AND CONCERNS-There was no public input

IV: ACTION DISCUSSION

1. Approved/Disapprove Overnight Trip for Football Team to McKinleyville July 21-24 2011A motion was made by Chris Irwin, seconded by Peter Quartarolo and the motion carried to approvethe overnight trip for the Football Team July 21-24, 2011

2. Approved/Disapprove Purchase of 7 ELO Touch Computers for the Food Service Department P.O.12-00091 for $11,148.84 (To be paid from Cafeteria Funds)

A motion was made by Gary Olson, seconded by Chris Irwin and the motion carried to approve thepurchase of 7 ELO Touch Computers for the Food Service Department

V: ADVANCED AGENDA no advanced agenda items

VI: ADJOURNMENT The Board adjourned at 8:06 am to meet again, unless otherwise announced, onTuesday, August 9, 2011 at 7:00 p.m. at Kelseyville Unified School District Office Board RoomKelseyville, California.

SecretaryAdopted and ordered into the records of theDistrict August 16, 2011

, Clerk

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MINUTES

KELSEYVILLE UNIFIED SCHOOL DISTRICTSPECIAL MEETING OF BOARD OF TRUSTEES

Date: August 9, 2011 Place: Kelseyville Unified School District Office

Time: Closed Session 6:00 pm Board RoomOpen Session 7:00 pm 4410 Konocti Road

Kelseyville CA 95451

I: CALL TO ORDER: The meeting was called to order at 6:02 pm by President Winer

Members Present: Rick Winer President

John DeChaine Vice President

Chris Irwin Clerk

Peter Quartarolo

Gary Olson

II: CLOSED SESSION The Board went into closed session at 6:02

CONFERENCE WITH LABOR NEGOTIATOR: DAVID MCQUEEN

Employee Organizations: California School Employees Association

Kelseyville Unified Teachers Association

Unrepresented Employees

CERTAIN PERSONNEL MATTERS 54954.5 and 54957

Public Employee Evaluation

III: RECONVENE TO OPEN SESSION-The Board reconvened to open session at 7:09 pm andrecited the pledge of allegiance. President Winer reported that no action was taken in closed

session.

IV: APPROVAL OF AGENDA- Rick Winer asked that Item 2 Superintendent SalarySchedule 2011-2012 be removed from the Agenda at the request of the Superintendent.A Motion was then made by John DeChaine, seconded by Gary Olson and the motion

carried to approve the agenda as modified.

V: PUBLIC REMARKS AND CONCERNS-There was no public input

VI: ACTION DISCUSSION

1. Approved/Disapprove Recommended List of items to Return to the Fiscal RecoveryPlan

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A motion was made by Peter Quartarolo seconded by Chris Irwin and the motion

carried to approve the Recommended List of items to Return to the Fiscal Recovery

Plan.

2. Approve/Disapprove Superintendent Salary Schedule 2011-2012This item was removed from the agenda.

3. Offer FT Music Teaching Position to Anna-Alicia Fullmer. PCN 200 EffectiveAugust 29, 2011

A motion was made by John DeChaine, seconded by Peter Quartarolo and the motion

carried to offer the music position to Anna-Alicia Fullmer.

4. Approved/Disapprove ROP Stipend for Mike Jones to Teach an ROP Constructionclass from June 20, 2011 August 16, 2011 to be paid by LCOE to KUSD at No Cost

to the District

A motion was made by Chris Irwin, seconded by Peter Quartarolo and the motioncarried to approve the ROP Stipend for Mike Jones.

5. Discussion of Revisions to Board Policy 9250REMUNERATION ANDREIMBURSEMENT, OTHER BENEFITS

A motion was made by Chris Irwin to table this item until the next Board Meeting on

August 16. The Motion was seconded by Gary Olson and passed unanimously.

VII: ADVANCED AGENDA-There were no advanced agenda items.

VIII: ADJOURNMENT-The Board adjourned at 7:40 pm to meet again, unless otherwiseannounced, on Tuesday, August 16, 2011 at 7:00 p.m. at Kelseyville Unified School

District Office Board Room Kelseyville, California.

Secretary

Adopted and ordered into the records of theDistrict August 16, 2011

, Clerk

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Pe r sonne l N o t i ceSocial Security #: ______ - _____ - _______

Employee Name ____Debra Davis_______________________

Check One : Check One :New Hire New-Permanent Demotion

Change New-Temporary Salary Range Change Termination New-Student Help Length of Work Year

Other__________ New-Short Term Resignation Leave Of Absence Promotion Retirement (Enter Dates in Comments) Transfer Other (see comment)

Comments: ______Layoff_____________________________________________________________

Com p le te The Fo l l ow ing In f o rm at i on :Employees Previous Position Employees New Position

Position Control # 333

Title Kitchen Aide

Location Riviera Elementary

Last / First Day In Position August 26, 2011

Hours Per Day 1.5

Days Per Week 5

Days Per Year 180

Eligible H&W Benefits ? NO

Range & Step I-9

Pay Rate (Hourly or Annual) 12.97

Date: _________ Superintendent ____________________________________________

(Pending Board Approval)

Funds Budgeted Budget Transfer Required Funds Unavailable

Account Code(s) 13 - 5310_-_2200 -0-_0000 - 3700_-114 _- 00000 _100__%Fund Resource Object Yr Goal Function Site User % of Position

___-______-______- 0 -______-______-____-_______ ________%

Date: __________ Chief Financial Officer________________________________________

Board Meeting Date: ___August 16, 2011 ___ Board Approved Disapproved Report Only

Kelseyville UnifiedSchool District

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Employee Name____Cheryl Hale______________________




Comments: ______Layoff_____________________________________________________________



Title Instructional Aide



Hours Per Day 3.0

Days Per Week 5

Days Per Year 181

Eligible H&W Benefits ? NO

Range & Step H-9





Account Code(s) - _-_ -0-_ - _- _- _100__%Fund Resource Object Yr Goal Function Site User % of Position

___-______-______- 0 -______-______-____-_______ ________%


Board Meeting Date: ___August 16, 2011 ___ Board Approved Disapproved Report Only


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Employee Name _______Janice Norton________________




Comments: ____Layoff______________________________________________________________



Title Instructional Aide



Hours Per Day 3.0

Days Per Week 5

Days Per Year 181

Eligible H&W Benefits ? No

Range & Step H-7





Account Code(s) ___-______-______- 0 -______-______-____-_______ ________%Fund Resource Object Yr Goal Function Site User % of Position

___-______-______- 0 -______-______-____-_______ ________%


Board Meeting Date: ___August 16, 2011___ Board Approved Disapproved Report Only


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Employee Name ____Jonathon Thorn______________________




Comments: ____Cross Country Coach_________________________________________________



Title Cross Country Coach

Location KHS

Last / First Day In Position 2011/2012

Hours Per Day As needed

Days Per Week As needed

Days Per Year As needed

Eligible H&W Benefits ? No

Range & Step 82% B-step 1


Date: _________ Superintendent ____________________________________________(Pending Board Approval)


Account Code(s) ___-______-______- 0 -______-______-____-_______ ________%Fund Resource Object Yr Goal Function Site User % of Position

___-______-______- 0 -______-______-____-_______ ________%


Board Meeting Date: _____________ Board Approved Disapproved Report Only


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Kelseyville UnifiedSchool Distric t

MemoTo: Kelseyville Unified Board Members

From: Tiffany Kemp, CFO

CC: Dave McQueen, Superintendent

Date: 8/12/2011

Re: 2011-12 Classified Position Restorations

Based on Board action on 08/09/2011, on the Fiscal Recovery Plan Priority Restorations, the KUSD Administrationrequests the Boards approval on the following:

PCN 355 1.0 FTE Secretary I (200 Days) Kelseyville High School

PCN 356 1.0 FTE Secretary I (200 Days) Kelseyville Elementary/Mt Vista Middle School

PCN 357 .5625 FTE Secretary I (200 Days) Riviera Elementary School

PCN 358 1.0 FTE Custodian I (260 Days) Kelseyville High School

PCN 359 .46875 FTE Custodian I (180 Days) Riviera Elementary School

PCN 360 .46875 FTE Account Clerk (260 Days) District Office

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Kelseyville Unified School District

Board PolicyBP 3016

BUSINESS AND NON-INSTRUCTIONAL OPERATIONS

FUND BALANCE POLICY

The Fund Balance Policy is intended to provide guidelines during the preparation and execution of the

annual budget to ensure that sufficient reserves are maintained for unanticipated expenditures or revenue

shortfalls. It also is intended to preserve flexibility throughout the fiscal year to make adjustments in

funding for programs approved in connection with the annual budget. The Fund Balance Policy should be

established based upon a long-term perspective recognizing that stated thresholds are considered

minimum balances. The main objective of establishing and maintaining a Fund Balance Policy is for the

district to be in a strong fiscal position that will allow for better position to weather negative economic

trends.

The Fund Balance consists of five categories: Nonspendable, Restricted, Committed, Assigned, and

Unassigned.

Nonspendable Fund Balance consists of funds that cannot be spent due to their form (e.g.inventories and prepaids) or funds that legally or contractually must be maintained intact.

Restricted Fund Balance consists of funds that are mandated for a specific purpose by externalparties, constitutional provisions or enabling legislation.

Committed Fund Balance consists of funds that are set aside for a specific purpose by thedistricts highest level of decision making authority (governing board). Formal action must be

taken prior to the end of the fiscal year. The same formal action must be taken to remove or

change the limitations placed on the funds.

Assigned Fund Balance consists of funds that are set aside with the intent to be used for aspecific purpose by the districts highest level of decision making authority or a body or official

that has been given the authority to assign funds. Assigned funds cannot cause a deficit in

unassigned fund balance.

Unassigned Fund Balance consists of excess funds that have not been classified in the previousfour categories. All funds in this category are considered spendable resources. This category also

provides the resources necessary to meet unexpected expenditures and revenue shortfalls.

Nonspendable and Restricted Funds

Nonspendable funds are those funds that cannot be spent because they are either:

1) Not in spendable form (e.g. inventories and prepaids)

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Authority to Assign Funds

Upon passage of the Fund Balance Policy, authority is given to the districts Chief Business Official to

assign funds for specific purposes. Any funds set aside as Assigned Fund Balance must be reported to the

districts governing board at their next regular meeting. The governing board has the authority to remove

or change the assignment of the funds with a simple majority vote.

The districts governing board has the authority to set aside funds for the intended use of a specific

purpose. Any funds set aside as Assigned Fund Balance requires a simple majority vote and must be

recorded in the minutes. The same action is required to change or remove the assignment.

Unassigned Fund Balance

Unassigned Fund Balance is the residual amount of Fund Balance in the General Fund. It represents the

resources available for future spending. An appropriate level of Unassigned Fund Balance should be

maintained in the General Fund in order to cover unexpected expenditures and revenue shortfalls.

Unassigned Fund Balance may be accessed in the event of unexpected expenditures up to the minimumestablished level upon approval of a budget revision by the Districts governing board. In the event of

projected revenue shortfalls, it is the responsibility of the Chief Business Official to report the projections

to the districts governing board on a quarterly basis and shall be recorded in the minutes.

Any budget revision that will result in the Unassigned Fund Balance dropping below the minimum level

will require the approval of 2/3 vote of the districts governing board.

The Fund Balance Policy establishes a minimum Unassigned Fund Balance equal to 5% of total General

Fund expenditures. In the event that the balance drops below the established minimum level, the Districts

governing board will develop a plan to replenish the fund balance to the established minimum level

within two years.

Adoption History:

Presented: August 16, 2011

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Resolution 11/12-03

BOARD AUTHORIZATION FOR SPECIFIC TEACHING ASSIGNMENTS

WHEREAS, the Governing Board of the Kelseyville Unified School District recognizes

its responsibility to provide adequate teaching staff to meet the educational

needs of its students; and

WHEREAS, the Board has considered the qualified applicants for teaching positions with

the District and has determined the need for the limited teaching authorization

hereinafter stated;

NOW,THEREFORE, BE IT RESOLVED that the Governing Board of Kelseyville

Unified School District authorizes and approves the following limited

authorization to teach in accordance with the regulations adopted by theCalifornia Commission on Teacher Credentialing and the applicable

provisions of California Education Code 44263;


for Cora Carrier, an employee of the District to teach Algebra I for the

2011-12 school year.

PASSED AND ADOPTED this 16th

day of August, 2011 by the Governing Board of the

Kelseyville Unified School District, by the following vote:

Ayes:

Nays:

Abstain:

Absent:

President

Vice President

Clerk

Member

Member

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Resolution 11/12-04


WHEREAS, the Governing Board of the Kelseyville Unified School District recognizes

its responsibility to provide adequate teaching staff to meet the educational

needs of its students; and

WHEREAS, the Board has considered the qualified applicants for teaching positions with

the District and has determined the need for the limited teaching authorization

hereinafter stated;

NOW,THEREFORE, BE IT RESOLVED that the Governing Board of Kelseyville

Unified School District authorizes and approves the following limited

authorization to teach in accordance with the regulations adopted by theCalifornia Commission on Teacher Credentialing and the applicable

provisions of California Education Code 44263;


for Matt Carpenter, an employee of the District to teach English II & IV for

the 2011-12 school year.

PASSED AND ADOPTED this 16th

day of August, 2011 by the Governing Board of the

Kelseyville Unified School District, by the following vote:

Ayes:

Nays:

Abstain:

Absent:

President

Vice President

Clerk

Member

Member

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MEMORANDUM

To: David McQueenTiffany Kemp

From: Rich Malone

Date: August 9, 2011

Re: 2011 General Obligation Refunding Bonds Authorizing Resolution

David and Tiffany, as you know, on August 16th the Kelseyville Unified School District Board w ill be

asked to consider a resolution authorizing the issuance of general obligation bonds to refinancebonds previously issued in 2002. This resolution includes approving the forms of variousdocuments related to the bond issuance and authorizing certain District officials to execute thefinal versions of the documents. In preparation for the Boards consideration of this item, I amwriting to briefly review the role of each of the primary documents.

District Resolution

In addition to authorizing the sale of the Bonds and approving the forms of various documents,the resolution also prescribes certain terms and conditions of the Bonds, including the principalmaturity dates, the method of interest calculation, and redemption and defeasance procedures.The Resolution also establishes the requisite funds and accounts and sets forth certain covenantsof the District to ensure the Bonds maintain their tax-exempt status.

Exhibit A Form of Bond

The Bond is the document executed by the District entitling the holder to receive principal andinterest pursuant to the terms described therein.

Exhibit B Form of Investor Certifications

Since the 2011 General Obligation Refunding Bonds are being sold via a private placement (andnot in the public markets with an official statement, underwriter, etc.), the purchaser of the Bondsmust represent that they are a sophisticated investor. To document this representation, thepurchaser will be asked to sign the Investor Certifications.

Exhibit C Form of Bond Purchase Agreement

The Bond Purchase Agreementspecifies the terms and conditions under which the purchaser willbuy the Bonds from the District. Note that the actual Bond Purchase Agreementmay differ fromthe form attached if the purchaser prefers to use a different format that is not worse for theDistrict.

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August 9, 2011David McQueen and Tiffany Kemp2011 General Obligation Refunding Bonds Authorizing ResolutionPage 2

Exhibit D Form of Escrow Agreement

The escrow agent, Wells Fargo Bank, will hold and invest a portion of the proceeds of the Bondsin order to prepay the Series 2002 General Obligation Bonds on September 19, 2011. TheEscrow Agreementsets forth the establishment of the escrow fund, the escrow agents role, andthe use and investment of escrow proceeds.

Exhibit E Form of Paying Agent Agreement

The Paying Agent Agreementdefines the responsibilities of the paying agent, also Wells FargoBank, including mainta ining the list of bondholders as well as receiving debt service payments fromthe County and forwarding such payments to the bondholders when due.

David and Tiffany, please let me know if you have any questions or comments.

REM/abm

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RESOLUTION NO. 11/12-05

RESOLUTION OF THE BOARD OF TRUSTEES OF THE KELSEYVILLEUNIFIED SCHOOL DISTRICT AUTHORIZING THE ISSUANCE OF ITS

2011 GENERAL OBLIGATION REFUNDING BONDS

Adopted August 16, 2011

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TABLE OF CONTENTS

Page

ARTICLE IDEFINITIONS; AUTHORITY

Section 1.01. Definitions ....................................................................................................................................... 2Section 1.02. Authority for this Resolution..... .......... ........... .......... ........... .......... ........... .......... ........... ........... .... 5

ARTICLE IITHE BONDS

Section 2.01. Authorization........ .......... ........... .......... ........... ........... .......... ........... .......... ........... .......... ........... ...... 6Section 2.02. Terms of Bonds ............................................................................................................................... 6Section 2.03. Redemption of Bonds .......... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... . 7Section 2.04. Form of Bonds ......... ........... .......... ........... ........... .......... ........... .......... ........... .......... ........... .......... ... 9Section 2.05. Execution of Bonds .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... ........... .... 9Section 2.06. Transfer of Bonds .......... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... ........ 9Section 2.07. Exchange of Bonds ......... ........... .......... ........... ........... .......... ........... .......... ........... .......... ........... .... 10Section 2.08. Bond Register .......... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... ........... .. 10Section 2.09. Temporary Bonds .......... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... ...... 10Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen ......... ........... .......... ........... ........... .......... ........... .... 10

ARTICLE IIIISSUE OF BONDS; APPLICATION OF BOND PROCEEDS; SECURITY FOR

THE BONDSSection 3.01. Issuance, Award and Delivery of Bonds .......... ........... .......... ........... .......... ........... .......... .......... 12Section 3.02. Establishment of Costs of Issuance Fund....... ........... .......... ........... ........... .......... ........... .......... . 12Section 3.03. Application of Proceeds of Sale of Bonds .......... .......... ........... ........... .......... ........... .......... ........ 12Section 3.04. Security for the Bonds .......... ........... ........... .......... ........... .......... ........... .......... ........... .......... ........ 13

ARTICLE IVSALE OF THE BONDS, APPROVAL OF ESCROW AGREEMENT,

APPROVAL OF PAYING AGENT AGREEMENTSection 4.01. Sale of the Bonds ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... ...... 14Section 4.02. Approval of Escrow Agreement ........... .......... ........... .......... ........... ........... .......... ........... .......... . 14Section 4.03. Approval of Paying Agent/Bond Registrar/Costs of Issuance Agreement ........... .......... ... 14Section 4.04. Official Action .......... ........... .......... ........... ........... .......... ........... .......... ........... .......... ........... .......... . 14

ARTICLE VOTHER COVENANTS OF THE DISTRICT

Section 5.01. Punctual Payment .......... ........... .......... ........... .......... ........... .......... ........... ........... .......... ........... .... 15Section 5.02. Extension of Time for Payment ......... ........... ........... .......... ........... .......... ........... .......... ........... .... 15Section 5.03. Protection of Security and Rights of Bondowners .......... .......... ........... ........... .......... ........... .... 15Section 5.04. Further Assurances .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ... 15Section 5.05. Tax Covenants ......... ........... .......... ........... ........... .......... ........... .......... ........... .......... ........... .......... . 15Section 5.06. Acquisition, Disposition and Valuation of Investments .......... ........... ........... .......... ........... .... 16

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ARTICLE VI

THE PAYING AGENTSection 6.01. Appointment of Paying Agent .......... ........... .......... ........... .......... ........... ........... .......... ........... .... 17Section 6.02. Paying Agent May Hold Bonds .......... ........... .......... ........... .......... ........... .......... ........... .......... ... 17Section 6.03. Liability of Agents .......... ........... .......... ........... ........... .......... ........... .......... ........... .......... ........... .... 17Section 6.04. Notice to Agents .......... .......... ........... ........... .......... ........... .......... ........... .......... ........... .......... ........ 18Section 6.05. Compensation, Indemnification .......... ........... .......... ........... .......... ........... .......... ........... ........... .. 18

ARTICLE VIIREMEDIES OF BONDOWNERS

Section 7.01. Events of Default ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... ...... 20Section 7.02. Remedies of Bondowners....... ........... .......... ........... .......... ........... .......... ........... .......... ........... ...... 20Section 7.03. Non-Waiver .................................................................................................................................. 21Section 7.04. Remedies Not Exclusive ........... .......... ........... ........... .......... ........... .......... ........... .......... ........... .... 21

ARTICLE VIIISUPPLEMENTAL RESOLUTIONS

Section 8.01. Supplemental Resolutions Effective Without Consent of the Owners ........... .......... ........... . 22Section 8.02. Supplemental Resolutions Effective With Consent to the Owners .......... ........... .......... ........ 22

ARTICLE IXMISCELLANEOUS

Section 9.01. Benefits of Resolution Limited to Parties ......... ........... .......... ........... .......... ........... .......... .......... 23Section 9.02. Defeasance..................................................................................................................................... 23Section 9.03. Execution of Documents and Proof of Ownership by Bondowners .......... .......... ........... ...... 25Section 9.04. Waiver of Personal Liability ........... ........... .......... ........... .......... ........... .......... ........... .......... ........ 25Section 9.05. Destruction of Canceled Bonds ......... ........... .......... ........... .......... ........... ........... .......... ........... .... 26Section 9.06. Partial Invalidity .......... .......... ........... ........... .......... ........... .......... ........... .......... ........... .......... ........ 26Section 9.07. Effective Date of Resolution ........... .......... ........... .......... ........... ........... .......... ........... .......... ........ 26EXHIBIT A: FORM OF BONDEXHIBIT B: FORM OF INVESTOR CERTIFCIATIONSEXHIBIT C: FORM OF BOND PURCHASE AGREEMENTEXHIBIT D: FORM OF ESCROW AGREEMENTEXHIBIT E: FORM OF PAYING AGENT/BOND REGISTRAR/COSTS OF ISSUANCE AGREEMENT

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RESOLUTION NO. _______

RESOLUTION OF THE BOARD OF TRUSTEES OF THE KELSEYVILLEUNIFIED SCHOOL DISTRICT AUTHORIZING THE ISSUANCE OF ITS

2011 GENERAL OBLIGATION REFUNDING BONDS

WHEREAS, the Board of Supervisors (the County Board) of Lake County,California (the County), has previously issued, in the name of the Kelseyville UnifiedSchool District (the District), the Kelseyville Unified School District General ObligationBonds, Election of 2001, Series 2002, dated July 2, 2002, in the principal amount of $2,930,000,of which $2,255,000 principal amount is currently outstanding (the 2002 Bonds);

WHEREAS, pursuant to Article 9 of Chapter 3 (commencing with section 53550) ofDivision 2 of Title 5 of the California Government Code (the Act), the District is

empowered to issue general obligation refunding bonds;

WHEREAS, the District intends to issue general obligation refunding bonds pursuantto this resolution and in conformity with the Act to refund, on a current basis, all,outstanding 2002 Bonds; and

WHEREAS, this Board now desires to authorize the issuance of such generalobligation refunding bonds;

NOW, THEREFORE, BE IT RESOLVED, THAT THE BOARD OF TRUSTEES OF THEKELSEYVILLE UNIFIED SCHOOL DISTRICT DOES HEREBY RESOLVE AS FOLLOWS:

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ARTICLE I

DEFINITIONS; AUTHORITY

Section 1.01. Definitions. The terms defined in this Section 1.01, as used andcapitalized herein, shall, for all purposes of this Resolution, have the meanings ascribed tothem below, unless the context clearly requires some other meaning.

Act means Article 9 of Chapter 3 (commencing with section 53550) of Division 2 ofTitle 5 of the California Government Code, as is in effect on the date of adoption hereof andas amended hereafter.

Articles, Sections and other subdivisions are to the corresponding Articles,Sections or subdivisions of this Resolution, and the words herein, hereof, hereunderand other words of similar import refer to this Resolution as a whole and not to anyparticular Article, Section or subdivision hereof.

Authorized Investments means any investments permitted by law to be made withmoneys belonging to, or in the custody of, the District, but only to the extent that the sameare acquired at Fair Market Value.

Board means the Board of Trustees of the District.

Bond Counsel means any attorney or firm of attorneys nationally recognized forexpertise in rendering opinions as to the legality and tax exempt status of securities issued bypublic entities.

Bond Purchase Agreement means the bond purchase agreement executed betweenthe District and the Purchaser relating to the Bonds.

Bond Register means the records maintained by the Paying Agent pursuant toSection 2.08 of this Resolution for registration of the ownership and transfer of ownership ofthe Bonds.

Bonds means the Kelseyville Unified School District (Lake County, California) 2011General Obligation Refunding Bonds at any time Outstanding pursuant to this Resolution.

Closing Date means the date upon which there is an exchange of Bonds for theproceeds representing the purchase price of the Bonds by the Purchaser.

Code means the Internal Revenue Code of 1986 as in effect on the date of issuance ofthe Bonds or (except as otherwise referenced herein) as it may be amended to apply toobligations issued on the date of issuance of the Bonds, together with applicable temporary

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and final regulations promulgated, and applicable official public guidance published, underthe Code.

Costs of Issuance means all items of expense directly or indirectly reimbursable to

the District relating to the issuance, execution and delivery of the Bonds including, but notlimited to, filing and recording costs, settlement costs, printing costs, reproduction andbinding costs, legal fees and charges, fees and expenses of the Paying Agent, financial andother professional consultant fees, fees for execution, transportation and safekeeping of theBonds and charges and fees in connection with the foregoing.

Debt Service means the scheduled amount of interest and amortization of principalpayable on the Bonds during the period of computation, excluding amounts scheduledduring such period which relate to principal which has been retired before the beginning ofsuch period.

District Representative means the Superintendent, the Chief Financial Officer, or anyother person authorized by resolution of the Board to act on behalf of the District withrespect to this Resolution and the Bonds.

Escrow Agreement means the agreement of that name, dated the Closing Date, byand between the District and Wells Fargo Bank, National Association, as escrow holder, withrespect to the defeasance of the 2002 Bonds.

Escrow Bank means Wells Fargo Bank, National Association, as escrow bank underthe Escrow Agreement.

Escrow Fund is the fund of that name established and held under the Escrow

Deposit and Trust Agreement.

Fair Market Value means the price at which a willing buyer would purchase theinvestment from a willing seller in a bona fide, arms length transaction (determined as of thedate the contract to purchase or sell the investment becomes binding) if the investment istraded on an established securities market (within the meaning of section 1273 of the Code)and, otherwise, the term Fair Market Value means the acquisition price in a bona fidearms length transaction (as referenced above) if (i) the investment is a certificate of depositthat is acquired in accordance with applicable regulations under the Code, (ii) the investmentis an agreement with specifically negotiated withdrawal or reinvestment provisions and aspecifically negotiated interest rate (for example, a guaranteed investment contract, a

forward supply contract or other investment agreement) that is acquired in accordance withapplicable regulations under the Code, (iii) the investment is a United States TreasurySecurityState and Local Government Series that is acquired in accordance with applicableregulations of the United States Bureau of Public Debt, or (iv) any commingled investmentfund in which the District and related parties do not own more than a ten percent (10%)beneficial interest therein if the return paid by the fund is without regard to the source of theinvestment.

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Federal Securities means United States Treasury notes, bonds, bills or certificates of

indebtedness or those for which the faith and credit of the United States are pledged for thepayment of principal and interest.

Financial Advisor means Government Financial Strategies inc., as financial advisorto the District in connection with the issuance of the Bonds.

Net Proceeds, when used with reference to the Bonds, means the face amount of theBonds, plus accrued interest and premium, if any, less original issue discount andunderwriters discount, if any.

Outstanding, when used as of any particular time with reference to Bonds, meansall Bonds except:

(a) Bonds theretofore canceled by the Paying Agent or surrendered to the PayingAgent for cancellation;

(b) Bonds paid or deemed to have been paid within the meaning of Section 9.02hereof; and

(c) Bonds in lieu of or in substitution for which other Bonds shall have beenauthorized, executed, issued and delivered by the District pursuant to the Resolution.

Owner or Bondowner mean any person who shall be the registered owner of anyOutstanding Bond.

Paying Agent means Wells Fargo Bank, National Association, as paying agent,registrar and authenticating agent for the Bonds, its successors and assigns, and any othercorporation or association which may at any time be substituted in its place, as provided inSection 6.01 hereof.

Paying Agent/Bond Registrar/Costs of Issuance Agreement means the agreement of thatname, dated the Closing Date, by and between the District and the Paying Agent.

Principal Office means the principal corporate trust office of the Paying Agent in SanFrancisco, California.

Purchaser means the purchaser of the Bonds selected through a competitive biddingprocess conducted by the Financial Advisor and approved by a District Representative, orthe designee thereof.

Regulations means temporary and permanent regulations promulgated under theCode.

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Resolution means this Resolution.

Supplemental Resolution means any resolution supplemental to or amendatory ofthis Resolution, adopted by the District in accordance with Article VIII hereof.

2002 Bonds means the Kelseyville Unified School District General Obligation Bonds,Election of 2001, Series 2002, dated July 2, 2002, in the principal amount of $2,930,000, ofwhich $2,255,000 principal amount is currently outstanding.

Written Request of the District means an instrument in writing signed by a DistrictRepresentative, or by any other officer of the District duly authorized by the District.

Section 1.02. Authority for this Resolution. This Resolution is entered into pursuant tothe provisions of the Act.

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ARTICLE II

THE BONDS

Section 2.01. Authorization. Bonds in the aggregate principal amount of not to exceedtwo million four hundred thousand dollars ($2,400,000) are hereby authorized to be issuedby the District under and subject to the terms of the Act and this Resolution. This Resolutionconstitutes a continuing agreement with the Owners of all of the Bonds issued or to be issuedhereunder and then Outstanding to secure the full and final payment of principal of andpremiums, if any, and the interest on all Bonds which may from time to time be executedand delivered hereunder, subject to the covenants, agreements, provisions and conditionsherein contained. The Bonds shall be designated the Kelseyville Unified School District(Lake County, California) 2011 General Obligation Refunding Bonds.

Section 2.02. Terms of Bonds.

(a) Form; Numbering. The Bonds shall be issued as fully registered Bonds, withoutcoupons, in the denomination of $5,000 each or any integral multiple thereof, but in anamount not to exceed the aggregate principal amount of Bonds maturing in the year ofmaturity of the Bond for which the denomination is specified. Bonds shall be lettered andnumbered as the Paying Agent shall prescribe.

(b) Date of Bonds. The Bonds shall be dated as of the Closing Date.

(c)Maturities; Interest. The Bonds shall mature and become payable on July 1 in eachof the years 2012 through 2027, in the amounts determined upon the sale thereof in

accordance with Section 4.01 hereof. The Bonds shall bear interest at such rate or rates asshall be determined upon the sale thereof in accordance with Section 4.01 hereof, payablesemi-annually on each January 1 and July 1 (the Interest Payment Dates), commencing

January 1, 2012.

Each Bond shall bear interest from the Interest Payment Date next preceding the dateof registration and authentication thereof unless (i) it is registered and authenticated as of anInterest Payment Date, in which event it shall bear interest from such date, or (ii) it isregistered and authenticated prior to an Interest Payment Date and after the close of businesson the fifteenth day of the month preceding such Interest Payment Date, in which event itshall bear interest from such Interest Payment Date, or (iii) it is registered and authenticated

prior to December 15, 2011, in which event it shall bear interest from the date described inparagraph (b) of this Section 2.02;provided, however, that if at the time of authentication of aBond, interest is in default thereon, such Bond shall bear interest from the Interest PaymentDate to which interest has previously been paid or made available for payment thereon.

Interest on the Bonds shall be calculated on the basis of a 360-day year comprised oftwelve 30-day months.

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(d) Payment. Interest on the Bonds (including the final interest payment upon

maturity or earlier redemption) is payable by check of the Paying Agent mailed via first-classmail to the Owner thereof at such Owners address as it appears on the Bond Register at the

close of business on the fifteenth (15th) day of the month preceding the Interest PaymentDate (the Record Date), or at such other address as the Owner may have filed with thePaying Agent for that purpose; provided however, that payment of interest may be by wiretransfer in immediately available funds to an account in the United States of America to anyOwner of Bonds in the aggregate principal amount of $1,000,000 or more who shall furnishwritten wire instructions to the Paying Agent at least five (5) days before the applicableRecord Date. Principal of the Bonds is payable in lawful money of the United States ofAmerica at the Principal Office of the Paying Agent.

Section 2.03. Redemption of Bonds.

(a) Optional Redemption. The Bonds shall be subject to redemption prior to maturity onthe dates and at the prices set forth in the Bond Purchase Agreement.

(b)Mandatory Sinking Fund Redemption. In the event and to the extent specified in theBond Purchase Agreement, any maturity of Bonds shall be designated as Term Bonds andshall be subject to mandatory sinking fund redemption on July 1 in each of the years set forthin the Bond Purchase Agreement, at a redemption price equal to one hundred percent (100%)of the principal amount thereof to be redeemed (without premium). If some but not all ofsuch Term Bonds have been redeemed pursuant to the preceding subsection (a) of thisSection 2.03, the aggregate principal amount of such Term Bonds to be redeemed in eachyear pursuant to this subsection (b) shall be reduced on a pro rata basis in integral multiplesof $5,000, as shall be designated pursuant to written notice filed by the District with the

Paying Agent.

(c) Selection of Bonds for Redemption. If less than all of the Bonds shall be called forredemption, the particular Bonds or portions thereof to be redeemed shall be called in suchorder as shall be directed by the District and, in lieu of such direction, in inverse order oftheir maturity. Within a maturity, the Paying Agent shall select the Bonds for redemption bylot; provided, however, that the portion of any Bond to be redeemed shall be in the principalamount of five thousand dollars ($5,000) or some integral multiple thereof and that, inselecting Bonds for redemption, the Paying Agent shall treat each Bond as representing thatnumber of Bonds which is obtained by dividing the principal amount of such Bond by fivethousand dollars ($5,000).

(d) Notice of Redemption. The Paying Agent shall give notice of the redemption of theBonds at the expense of the District. Such notice shall specify: (a) that the Bonds or adesignated portion thereof are to be redeemed, (b) the numbers of the Bonds to be redeemed,(c) the date of notice and the date of redemption, (d) the place or places where theredemption will be made, and (e) descriptive information regarding the Bonds including thedated date, interest rate and stated maturity date. Such notice shall further state that on the

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specified date there shall become due and payable upon each Bond to be redeemed, theportion of the principal amount of such Bond to be redeemed, together with interest accruedto said date, and that from and after such date interest with respect thereto shall cease toaccrue and be payable.

Notice of redemption shall be by first class mail, postage prepaid, to the respectiveowners of any Bonds designated for redemption at their addresses appearing on the BondRegister, in every case at least thirty (30) days, but not more than sixty (60) days, prior to theredemption date; provided that neither failure to receive such notice nor any defect in anynotice so mailed shall affect the sufficiency of the proceedings for the redemption of suchBonds.

(e) Partial Redemption of Bonds. Upon the surrender of any Bond redeemed in partonly, the Paying Agent shall execute and deliver to the registered owner thereof a new Bondor Bonds of like tenor and maturity and of authorized denominations equal in aggregateprincipal amount to the unredeemed portion of the Bonds surrendered. Such partialredemption shall be valid upon payment of the amount required to be paid to suchregistered owner, the Paying Agent and the District shall be released and dischargedthereupon from all liability to the extent of such payment.

(f) Effect of Redemption. Notice having been given as aforesaid, and the moneys for theredemption (including the interest to the applicable date of redemption) having been setaside for such purpose, the Bonds to be redeemed shall become due and payable on suchdate of redemption.

If on such redemption date, money for the redemption of all the Bonds to beredeemed as provided in this Section 2.03, together with interest to such redemption date,

shall be held by the Paying Agent so as to be available therefor on such redemption date, andif notice of redemption thereof shall have been given as aforesaid, then from and after suchredemption date, interest with respect to the Bonds to be redeemed shall cease to accrue andbecome payable. All money held by or on behalf of the Paying Agent for the redemption ofBonds shall be held in trust for the account of the registered owners of the Bonds so to beredeemed.

All Bonds paid at maturity or redeemed prior to maturity pursuant to the provisionsof this Section 2.03 shall be canceled upon surrender thereof and be delivered to or upon theorder of the District. All or any portion of a Bond purchased by the District shall be canceledby the Paying Agent.

Bonds (or portions thereof), which have been duly called for redemption prior tomaturity under the provisions of this Resolution, or with respect to which irrevocableinstructions to call for redemption prior to maturity at the earliest redemption date havebeen given to the Paying Agent, in form satisfactory to it, and sufficient moneys shall be heldby the Paying Agent irrevocably in trust for the payment of the redemption price of such

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Bonds or portions thereof, all as provided in this Resolution, then such Bonds shall no longerbe deemed outstanding and shall be surrendered to the Paying Agent for cancellation.

Section 2.04. Form of Bonds. The Bonds, the form of the Paying Agents certificate of

authentication and registration and the form of assignment to appear thereon shall besubstantially in the forms, respectively, with necessary or appropriate variations, omissionsand insertions, as permitted or required by this Resolution, as are set forth in Exhibit Aattached hereto.

Section 2.05. Execution of Bonds. The Bonds shall be executed on behalf of the Districtby the facsimile signatures of the President of the Board, the Superintendent or the ChiefFinancial Officer and the Secretary of the Board who are in office on the date of adoption ofthis Resolution or at any time thereafter. If any officer whose signature appears on any Bondceases to be such officer before delivery of the Bonds to the purchaser, such signature shallnevertheless be as effective as if the officer had remained in office until the delivery of theBonds to the purchaser. Any Bond may be signed and attested on behalf of the District bysuch persons as at the actual date of the execution of such Bond shall be the proper officers ofthe District although at the nominal date of such Bond any such person shall not have beensuch officer of the District.

Only such Bonds as shall bear thereon a certificate of authentication and registrationin the form set forth in Exhibit A attached hereto, executed and dated by the Paying Agent,shall be valid or obligatory for any purpose or entitled to the benefits of this Resolution, andsuch certificate of the Paying Agent shall be conclusive evidence that the Bonds so registeredhave been duly authenticated, registered and delivered hereunder and are entitled to thebenefits of this Resolution.

Section 2.06. Transfer of Bonds. Any Bond may, in accordance with its terms, betransferred, upon the books required to be kept pursuant to the provisions of Section 2.08hereof, by the person in whose name it is registered, in person or by his duly authorizedattorney, upon surrender of such Bond for cancellation at the Principal Office at the PayingAgent, accompanied by delivery of a written instrument of transfer in a form approved bythe Paying Agent, duly executed, and by the delivery by the transferee of investorcertifications substantially in the form attached hereto as Exhibit B. The Paying Agent shallrequire the payment by the Owner requesting such transfer of any tax or other governmentalcharge required to be paid with respect to such transfer.

Whenever any Bond or Bonds shall be surrendered for transfer, the District shall

execute and the Paying Agent shall authenticate and deliver a new Bond or Bonds, for likeaggregate principal amount.

No transfers of Bonds shall be required to be made (a) fifteen days prior to the dateestablished by the Paying Agent for selection of Bonds for redemption or (b) with respect to aBond after such Bond has been selected for redemption.

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Section 2.07. Exchange of Bonds. Bonds may be exchanged at the Principal Office ofthe Paying Agent for a like aggregate principal amount of Bonds of authorizeddenominations and of the same maturity. The Paying Agent shall require the payment by theOwner requesting such exchange of any tax or other governmental charge required to be

paid with respect to such exchange.

No exchanges of Bonds shall be required to be made (a) fifteen days prior to the dateestablished by the Paying Agent for selection of Bonds for redemption or (b) with respect to aBond after such Bond has been selected for redemption.

Section 2.08. Bond Register. The Paying Agent shall keep or cause to be kept sufficientbooks for the registration and transfer of the Bonds, which shall at all times be open toinspection by the District upon reasonable notice; and, upon presentation for such purpose,the Paying Agent shall, under such reasonable regulations as it may prescribe, register ortransfer or cause to be registered or transferred, on said books, Bonds as herein beforeprovided.

Section 2.09. Temporary Bonds. The Bonds may be initially issued in temporary formexchangeable for definitive Bonds when ready for delivery. The temporary Bonds may beprinted, lithographed or typewritten, shall be of such denominations as may be determinedby the District, and may contain such reference to any of the provisions of this Resolution asmay be appropriate. Every temporary Bond shall be executed by the District upon the sameconditions and in substantially the same manner as the definitive Bonds. If the District issuestemporary Bonds it will execute and furnish definitive Bonds without delay, and thereuponthe temporary Bonds may be surrendered, for cancellation, in exchange therefor at thePrincipal Office of the Paying Agent and the Paying Agent shall deliver in exchange for suchtemporary Bonds an equal aggregate principal amount of definitive Bonds of authorized

denominations. Until so exchanged, the temporary Bonds shall be entitled to the samebenefits pursuant to this Resolution as definitive Bonds executed and delivered hereunder.

Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall becomemutilated, the District, at the expense of the Owner of said Bond, shall execute, and thePaying Agent shall thereupon authenticate and deliver, a new Bond of like maturity andprincipal amount in exchange and substitution for the Bond so mutilated, but only uponsurrender to the Paying Agent of the Bond so mutilated. Every mutilated Bond sosurrendered to the Paying Agent shall be canceled by it and delivered to, or upon the orderof, the District. If any Bond shall be lost, destroyed or stolen, evidence of such loss,destruction or theft may be submitted to the District and, if such evidence be satisfactory to

the District and indemnity satisfactory to it shall be given, the District, at the expense of theOwner, shall execute, and the Paying Agent shall thereupon authenticate and deliver, a newBond of like maturity and principal amount in lieu of and in substitution for the Bond so lost,destroyed or stolen. The District may require payment of a sum not exceeding the actual costof preparing each new Bond issued under this Section and of the expenses which may beincurred by the District and the Paying Agent in connection therewith. Any Bond issuedunder the provisions of this Section 2.10 in lieu of any Bond alleged to be lost, destroyed or

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stolen shall constitute an original contractual obligation on the part of the District whether ornot the Bond so alleged to be lost, destroyed or stolen be at any time enforceable by anyone,and shall be equally and proportionately entitled to the benefits of this Resolution with allother Bonds issued pursuant to this Resolution.

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ARTICLE III

ISSUE OF BONDS; APPLICATION OF BOND PROCEEDS; SECURITY FORTHE BONDS

Section 3.01. Issuance, Award and Delivery of Bonds. At any time after the executionof this Resolution the District may issue and deliver Bonds in the aggregate principal amountof not to exceed two million four hundred thousand dollars ($2,400,000).

The Superintendent shall be, and is hereby, directed to cause the Bonds to be printed,signed and sealed, and to be delivered to the Purchaser on receipt of the purchase pricetherefor and upon performance of the conditions contained in the Bond Purchase Agreement(hereinafter defined).

The Paying Agent is hereby authorized to deliver the Bonds to the Purchaser, uponreceipt of a Written Request of the District.

Section 3.02. Establishment of Costs of Issuance Fund. There is hereby created theKelseyville Unified School District (Lake County, California) 2011 General ObligationRefunding Bonds Costs of Issuance Fund (the Costs of Issuance Fund), which shall beheld and maintained by the Paying Agent as a separate fund, distinct from all other fundsthereof. Amounts on deposit in the Costs of Issuance Fund shall be disbursed for the purposeof paying all items of expense directly or indirectly reimbursable to the District relating tothe issuance, execution and delivery of the Bonds including, but not limited to, filing andrecording costs, settlement costs, printing costs, reproduction and binding costs, legal feesand charges, fees and expenses of the Paying Agent, financial and other professional

consultant fees, fees for execution, transportation and safekeeping of the Bonds and chargesand fees in connection with the foregoing (Costs of Issuance). Payment of the Costs ofIssuance shall be made only upon the receipt by the Paying Agent of a written request of theDistrict. Moneys on deposit in the Costs of Issuance Fund shall be invested in money marketmutual funds which are rated by Standard & Poors Credit Ratings Services in one of its twohighest rating categories, including funds for which the Paying Agent, its affiliates orsubsidiaries provide investment, advisory or other management or administrative services.Interest and earnings derived from the investment of amounts on deposit in the Costs ofIssuance Fund shall be retained therein until the Costs of Issuance Fund is closed. On March13, 2012, all amounts remaining on deposit in the Costs of Issuance Fund shall be withdrawntherefrom by the Paying Agent and transferred to the Treasurer-Tax Collector of the County,

for deposit in the Interest and Sinking Fund heretofore established and maintained for theDistrict and the Costs of Issuance Fund shall be closed.

Section 3.03. Application of Proceeds of Sale of Bonds. On the date of delivery of theBonds (the Closing Date), the proceeds of sale of the Bonds shall be paid by the Purchaserto the Paying Agent. The Paying Agent shall deposit or transfer all of such amounts asfollows:

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(a) The Paying Agent shall deposit in the Costs of Issuance Fund the proceeds of the

Bonds, required to pay the Costs of Issuance (as shall be designated by the District on orprior to the Closing Date); and

(b) The Paying Agent shall transfer to the Escrow Bank for deposit in the EscrowFund such portion of the proceeds of the Bonds as are required for the defeasance of the 2002Bonds.

Section 3.04. Security for the Bonds. There shall be levied by the County on all thetaxable property in the District, in addition to all other taxes, a continuing direct and advalorem tax annually during the period the Bonds are outstanding in an amount sufficient topay the principal of and interest on the Bonds when due, which moneys when collected willbe placed in the Interest and Sinking Fund of the District, which fund is irrevocably pledgedfor the payment of the principal of and interest on the Bonds when and as the same fall due.The moneys in the Interest and Sinking Fund heretofore established and maintained by theCounty for the District, to the extent necessary to pay the principal of and interest on theBonds as the same become due and payable, shall be transferred by the County to the PayingAgent, as paying agent for the Bonds, as necessary to pay the principal of and interest on theBonds.

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ARTICLE IV

SALE OF THE BONDS, APPROVAL OF ESCROW AGREEMENT,APPROVAL OF PAYING AGENT AGREEMENT

Section 4.01. Sale of the Bonds. The Board hereby authorizes the negotiated sale of theBonds to the Purchaser. A Bond Purchase Agreement, in the form attached hereto as ExhibitC, together with any additions thereto or changes therein deemed necessary or advisable bythe Superintendent or the Chief Financial Officer, or any designee thereof, is herebyapproved by the Board. The Superintendent or the Chief Financial Officer, or any designeethereof, is hereby authorized and directed to execute the Bond Purchase Agreement for andin the name and on behalf of the District;provided, however, that the present value savings tobe realized by the District as a result of the issuance of the Bonds shall not be less than 3% ofthe 2002 Bonds.

Section 4.02. Approval of Escrow Agreement. The Escrow Agreement, insubstantially the form attached hereto as Exhibit D, together with any additions thereto orchanges therein deemed necessary or advisable by the Superintendent or the Chief FinancialOfficer, or any designee thereof, is hereby approved by the Board. The Superintendent andthe Chief Financial Officer or any designee thereof are hereby authorized and directed toexecute the Escrow Agreement for and in the name and on behalf of the District. The Boardhereby authorizes the delivery and performance of the Escrow Agreement.

Section 4.03. Approval of Paying Agent/Bond Registrar/Costs of IssuanceAgreement. The Paying Agent/Bond Registrar/Costs of Issuance Agreement, insubstantially the form attached hereto as Exhibit E, together with any additions thereto or

changes therein deemed necessary or advisable by the Superintendent or the Chief FinancialOfficer, or any designee thereof, is hereby approved by the Board. The Superintendent andthe Chief Financial Officer or any designee thereof are hereby authorized and directed toexecute the Paying Agent/Bond Registrar/Costs of Issuance Agreement for and in the nameand on behalf of the District. The Board hereby authorizes the delivery and performance ofthe Paying Agent/Bond Registrar/Costs of Issuance Agreement.

Section 4.04. Official Action. All actions heretofore taken by the officers and agents ofthe District with respect to the sale and issuance of the Bonds are hereby approved, and thePresident of the Board of the District, the Superintendent, the Chief Financial Officer and anyand all other officers of the District are hereby authorized and directed for and in the name

and on behalf of the District, to do any and all things and take any and all actions relating tothe execution and delivery of any and all certificates, requisitions, agreements and otherdocuments, which they, or any of them, may deem necessary or advisable in order toconsummate the lawful issuance and delivery of the Bonds in accordance with thisresolution.

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ARTICLE V

OTHER COVENANTS OF THE DISTRICT

Section 5.01. Punctual Payment. The District will punctually pay, or cause to be paid,the principal of and interest on the Bonds, in strict conformity with the terms of the Bondsand of this Resolution, and it will faithfully observe and perform all of the conditions,covenants and requirements of this Resolution and of the Bonds. Nothing herein containedshall prevent the District from making advances of its own moneys, howsoever derived, toany of the uses or purposes permitted by law.

Section 5.02. Extension of Time for Payment. In order to prevent any accumulation ofclaims for interest after maturity, the District will not, directly or indirectly, extend orconsent to the extension of the time for the payment of any claim for interest on any of theBonds and will not, directly or indirectly, approve any such arrangement by purchasing orfunding said claims for inter