The San Benito High School District has put two measures on the November ballot asking voters to approve $140 million in bonds to build a second high school.
While district officials are emphasizing the need to accommodate a growing local student population, the biggest financial backers of Measures L and M are out-of-area construction companies. One company in particular has been the target of litigation alleging questionable practices.
Measure L, if approved by voters, would help build a second high school by authorizing a $70 million bond. The money would be used to build a new high school. The bond would be paid back by increasing property taxes by $19 for every $100,000 of assessed value, raising approximately $4.5 million annually.
Measure M is also a request for another $70 million bond, increasing taxes by the same amount and generating the same revenue. Both bonds are geared toward the building of a new high school.
If both are passed, homeowners would pay a total of $38 per $100,000 of assessed value, raising $9 million per year. The bond initiative is split into two measures due to state limits on property tax increases. The funds would be overseen by a local citizen committee, according to the measure text.
Proponents say that in order to fund the creation of new classrooms, labs and other facilities, both measures have to pass in the Nov. 5 election.
The Committee for Excellent San Benito High Schools — Yes on L & M, has registered with the county elections office as the only campaign committee supporting either measure. The committee lists San Benito High School District Chief Business Officer John Frusetta and Financial Services Supervisor Kim Faraone as treasurer and principal officer, respectively.
Under California Education Code 7056, school district employees can “promote the support or defeat (of) a ballot measure that would affect the rate of pay, hours of work, retirement, civil service, or other working conditions of officers or employees of the local agency.” However, employees cannot campaign during work hours.
No formal campaign against L and M has filed papers, but the Silicon Valley Taxpayers Association filed an argument against the measures. In its argument, the group questioned the benefits for local students, citing 2016’s Measure U as an example. They say the $60 million bond approved by voters did little to improve student outcomes.
According to the latest campaign finance reporting, the Committee for Excellent San Benito High Schools has raised over $108,050, with most of the contributions coming in after the first reporting period at the end of June. The committee lists its expenses at $33,662, which includes $20,263.52 in payments to Team CivX, a public relations firm based in Orinda that specializes in developing bond measure campaigns for K-12 schools.
Nearly 20 companies in the construction industry have poured in donations ranging from $1,000 to $15,000. Most of these are based in the Bay Area, but some are from out of the state. Donors include Santa Clara-based Alliance Roofing ($5,000); Daley’s Drywall & Taping in Campbell ($5,000); and Climatec LLC of Phoenix, AZ ($5,000).
The sole local firm on the list is Hollister-based Marcus Building Systems Inc., which donated $5,000 on Aug. 22, according to campaign filings. The only other local donation was made by Hollister resident Carol Heiderich for $2,500 on Aug. 30. Heiderich is a former employee with the San Benito High School District.
The largest contributors are San José-based Blach Construction Company and HMC Architects, of Los Angeles. Both firms donated $15,000 each to the campaign. They have worked together on multiple projects over the years, including a 12,400 square foot library expansion and renovation at Orchard School District in San José.
Blach Construction has recently been awarded lucrative contracts in San Benito County, including the building of Gavilan College’s new $60 million Hollister campus, and a new $14.3 million student union building at Hollister High School.
But the company’s reputation and its support for school bond measures like L and M have recently come into question.
In February 2023, Blach was named in a lawsuit brought forth by the San Mateo Community College District against it and several other construction companies for their role in an alleged “pay-to-play” scheme orchestrated by former district chancellor Ron Galatolo, the court filing says. Galatolo was charged in April 2022 with 21 felonies spanning over a decade for misuse of public funds, according to The Almanac news site.
The lawsuit claims that Blach Construction and other firms benefited from hundreds of millions of dollars in kickbacks from Galatolo and former vice chancellor José Nuñez. According to the filing, an original $60.4 million contract awarded to Blach for a project at Cañada College ended up costing the district $101 million.
In 2014, Blach contributed $10,000 to the Yes on H campaign in favor of San Mateo Community College District’s Measure H. Galatolo was still heading up the district at that time.
The measure, which passed, borrowed $388 million to fund undisclosed projects. Galatolo was scrutinized then over the lack of project descriptions or costs in the bond projects list required by state law.
San Benito High School District’s Measures L and M describe numerous projects in the bond projects list, including classrooms, administrative offices, physical education facilities and a kitchen. The construction of parking lots, drop-off areas and walkways are also referenced. However, there are no cost estimates for any of these projects.
“The final cost of each project will be determined as plans are finalized and projects are completed. Based on the final costs of each project, certain of the projects described above may be delayed or may not be completed,” reads part of the full text of Measure L.
