Staff Report°wx ° MEETING DATE: 09/01/15
ITEM NO:
cos cn��s COUNCIL AGENDA REPORT
DATE: AUGUST 24, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: ROBERT SCHULTZ, TOWN ATTORNEY
SUBJECT: INTRODUCTION AND FIRST READING OF AN ORDINANCE
ADDING SECTION 25.60 TO THE CODE OF THE TOWN OF LOS
GATOS RELATING TO THE ADOPTION OF MITIGATION FEES
PURSUANT TO GOVERNMENT CODE SECTION 65970 TO
RELIEVE CONDITIONS OF OVERCROWDING IN THE LOS GATOS
UNION SCHOOL DISTRICT
RECOMMENDATION:
Staff recommends Town Council accept public comment and then move for introduction and
first reading of an Ordinance, by title only, adding Los Gatos Town Code Section 25.60.
BACKGROUND:
In 1977, the Legislature enacted Government Code Section 65970 -65981 designed to help
alleviate the overcrowding of local school facilities caused by new residential developments. The
Legislature found that under the traditional method of financing such facilities, the necessary
amount of funds was often unavailable within a reasonable period of time to prevent
overcrowding. It thus authorized local governments to impose a new method of financing
"interim" school facilities necessitated by new residential developments.
To remedy these concerns, Government Code sections 65970 -65981 permits a city or town to
impose additional mitigation obligations on residential developers to alleviate the impact of
overcrowding in schools caused by new development. However, before a developer may be
required to dedicate land or pay a fee in lieu thereof pursuant to sections 65970 through 65981,
the governing board of a school district which operates an elementary or high school shall make
the written findings, supported by clear and convincing evidence, required by Government Code
section 65971 and notify the city or town council of its findings.
PREPARED BY: ROBERT SCHULTZ
Town Attorney
Reviewed by:
Assistant Town Managerk (Town Attorney
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: ORDINANCE REGARDING FEES FOR OVERCROWDING OF SCHOOL
AUGUST 26, 2015
BACKGROUND (cont'd):
On April 17, 2015 the Los Gatos Union School District ( "District ") notified the Town of Los
Gatos that it had evaluated proposed new development within the Town of Los Gatos ( "Town "),
and had determined that new residential development will cause additional overcrowding in its
schools and no other feasible mitigations are available to reduce the overcrowding. This Notice
of Findings sets forth the District's findings and evidence in support of those findings pursuant to
Government Code Section 65971 is attached hereto as Exhibit 2.
DISCUSSION:
On April 17, 2015 the Town of Los Gatos received the Los Gatos Union School District Notice
of Findings of Overcrowding and a request pursuant to Government Code Section 65970 et seq.;
for the Town of Los Gatos to enact an Ordinance for additional development fees. ( Exhibit 2)
The key financing provision of the statutory scheme is Government Code section 65974, which
states:
(a) For the purpose of establishing an interim method of providing classroom
facilities where overcrowded conditions exist, as determined necessary pursuant
to Section 65971, and notwithstanding Section 66478, a city, county, or city and
county may, by ordinance, require the dedication of land, the payment of fees in
lieu thereof, or a combination of both, for classroom and related facilities for
elementary or high schools as a condition to the approval of a residential
development, if all of the following occur:
(1) The general plan provides for the location of public schools.
(2) The ordinance has been in effect for a period of 30 days prior to the
implementation of the dedication or fee requirement.
(3) The land or fees, or both, transferred to a school district shall be used only for
the purpose of providing interim elementary or high school classroom and related
facilities. If fees are paid in lieu of the dedication of land and those fees are
utilized to purchase land, no more land shall be purchased than is necessary for
the placement thereon of interim facilities.
(4) The location and amount of land to be dedicated or the amount of fees to be
paid, or both, shall bear a reasonable relationship and be limited to the needs of
the community for interim elementary or high school facilities and shall be
reasonably related and limited to the need for schools caused by the development.
However, the value of the land to be dedicated or the amount of fees to be paid, or
both, shall not exceed the amount necessary to pay five annual lease payments for
the interim facilities. In lieu of the dedication of land or the payment of fees, or
both, the builder of a residential development may, at his or her option and at his
or her expense, provide interim facilities, owned or controlled by the builder, at
the place designated by the school district, and at the conclusion of the fifth
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: ORDINANCE REGARDING FEES FOR OVERCROWDING OF SCHOOL
AUGUST 26, 2015
DISCUSSION (cont'd):
school year the builder shall, at the builder's expense, remove the interim
facilities from that place.
(5) A finding is made by the city council or board of supervisors that the facilities
to be constructed from the fees or the land to be dedicated, or both, is consistent
with the general plan.
(b) The ordinance may specify the methods for mitigating the conditions of
overcrowding that the school district shall consider when making the finding
required by paragraph (2) of subdivision (a) of Section 65971.
(c) If the payment of fees is required, the payment shall be made at the time the
building permit is issued or at a later time as may be specified in the ordinance.
(d) Only the payment of fees may be required in subdivisions containing 50
parcels or less.
The first step in responding to the School District's request is to adopt the attached Ordinance
relating to mitigation fees to relieve conditions of overcrowding in Los Gatos Schools and allows
for the mechanism for the Town of Los Gatos to implement additional development fees. The
attached Ordinance is a standard in almost all municipalities across the State that have enacted
such an ordinance. If the Town Council approves Introduction and First Reading of the
Ordinance, then at your next Town Council Meeting on September 15, 2015, the Town Council
would consider the adoption of the Ordinance and a Resolution on concurring with the findings
of overcrowding made by the Los Gatos Union School District and setting the development fee
for collection. A draft Resolution is attached hereto as Exhibit 3.
ALTERNATIVE:
If The Town Council decides to not adopt the Ordinance for Fee Dedication for Interim School
Facilities, then Staff would return with a Resolution in disagreement with the findings of
overcrowding made by the Board of Trustees of the Los Gatos Union School District.
CONCLUSION:
Staff recommends Council review and move for first reading and introduction of the attached
Ordinance by title only. Please feel free to ask questions or make any changes you feel
appropriate.
ENVIRONMENTAL ASSESSMENT:
The action is not a project defined under CEQA and no further action is required.
FISCAL IMPACT:
The adoption of this agreement results in no fiscal impact.
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: ORDINANCE REGARDING FEES FOR OVERCROWDING OF SCHOOL
AUGUST 26, 2015
Attachments:
1. Ordinance
2. LGUSD Letter and Findings
3. Draft Resolution
ORDINANCE
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF
LOS GATOS ADDING SECTION 25.60 TO THE LOS GATOS TOWN
CODE RELATING TO THE ADOPTION OF MITIGATION FEES PURSUANT
TO GOVERNMENT CODE SECTION 65970 TO RELIEVE CONDITIONS OF
OVERCROWDING IN THE LOS GATOS UNION SCHOOL DISTRICT
WHEREAS, the California Government Code section 65970, seq., provides for the
imposition of mitigation measures to relieve overcrowding in public schools whenever the
governing body of the school district finds that there is overcrowding in one or more of the
attendance areas within the district; and
WHEREAS, the governing board of the Los Gatos Union School District School
District, by unanimous vote, adopted Resolution No. 11- 14 -15, declaring therein that a condition
of overcrowding exists within the school district and requesting that the Los Gatos Town Council
adopt an ordinance imposing mitigation fees for the attendance areas of the district; and
WHEREAS, the California Government Code section 65970, seq., permits the Town of
Los Gatos, by ordinance, to require the dedication of land, the payment of fees in lieu thereof, or
a combination of both for classroom and related facilities for schools as a condition to approval
of a residential development; and
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1: Los Gatos Town Code Section 25.60 is hereby added to read as follows:
Chapter 25.60
FEE DEDICATION FOR INTERIM SCHOOL FACILITIES
Sections:
25.60.010
Citation.
25.60.020
Authority.
25.60.030
Purpose.
25.60.040
Regulations.
25.60.050
General plan.
Page 1 of 10
ATTACHMENT
25.60.060 Definitions.
25.60.070 Reasonable methods for mitigating conditions of overcrowding.
25.60.080 Exemptions.
25.60.090 Findings and notice.
25.60.100 Findings -- Requirements.
25.60.110 Concurrence by Town.
25.60.120 Findings for development approval.
25.60.130 Payment of fees -- Dedication of land.
25.60.140 Payment of fees in small residential developments.
25.60.150 Determination of fees or land.
25.60.160 Standards for fees and land dedications.
25.60.170 Fee required.
25.60.180 Land dedication.
25.60.190 Refunds.
25.60.200 School district schedule.
25.60.210 Use of funds.
25.60.220 Agreement for fee distribution.
25.60.230 Account.
25.60.240 Termination of dedication requirements.
25.60.010 Citation.
This chapter shall be known and may be cited as the "School Facilities Dedication
and Fee Ordinance."
25.60.020 Authority.
This chapter is adopted pursuant to the provisions of Chapter 4.7, commencing
with Section 65970 of Division 1 of Title 7 of the Government Code
25.60.030 Purpose.
The purpose of this chapter is to provide a method for financing interim school
facilities necessitated by new residential developments causing conditions of
overcrowding.
25.60.040 Regulations.
The Town Council may from time to time, by resolution, issue regulations to
provide for the administration of this chapter.
Page 2 of 10
25.60.050 General Plan.
Interim school facilities to be constructed from fees paid or land required to be
dedicated under this chapter, or both, shall be consistent with the Town General
Plan.
25.60.060 Definitions.
A. Conditions of Overcrowding. "Conditions of overcrowding" means the
total enrollment of a school, including enrollment from proposed development,
exceeds the capacity of such school as determined by the governing body of the
school district.
B. Decision - making Body. "Decision- making body" means the Town
Council, Planning Commission, or any one designated by the Town Council.
C. Dwelling Unit. "Dwelling unit" means a building or a portion thereof, or
mobile home, designed for residential occupation by one person or a group of two
or more persons living together as a domestic unit.
D. Residential Development. "Residential development" means a project
containing residential dwellings, including mobile homes, of one or more units or
a subdivision of land for the purpose of constructing one or more residential
dwelling units. Residential development includes, but is not limited to the
approval or issuance of
1. A tentative or final subdivision map, a tentative or final parcel
map, or a time extension on such a tentative or final map;
2. A special use permit or conditional use permit;
3. A property owner initiated ordinance rezoning property to a
residential use or to a more intense residential use;
4. Any other discretionary permit for residential use.
25.60.070 Reasonable methods for mitigating conditions of overcrowding.
"Reasonable methods for mitigating conditions of overcrowding" include, but are
not limited to the following:
A. Any agreements entered into by the affected school district which
would alleviate conditions of overcrowding caused by new residential
development;
B. The use of relocatable structures, student transportation, and school
boundary realignments;
C. The use of available bond or state loan revenues to the extent
authorized by law;
Page 3 of 10
D. The use of funds which could be available from the sale of surplus
school district real property and funds available from other appropriate
sources, as determined by the governing body of affected school districts;
E. Agreements between a subdivider or other developer of residential
developments in the affected school district whereby temporary use
buildings will be leased to or for the benefit of the school district or
temporary use buildings owned by the school district will be used.
25.60.080 Exemptions.
A residential development shall be exempt from the requirements of this chapter
when it consists only of any of the following:
A. Senior citizen housing approved, financed and/or subsidized by the
United States Department of Housing and Urban Development, and
residential development restricted to adults only, provided the developer
enters into a written agreement with the affected school district requiring
that the developer will make land available if such restrictions ceases
during a period the school district has overcrowded conditions within the
attendance area in which the development is located;
B. Any modification, expansion, enlargement or remodeling of an
existing legally established dwelling unit where no additional dwelling
units are created;
C. A condominium project converting an existing apartment building
into a condominium where no new dwelling units are created;
E. Any rebuilding of a legally established dwelling unit destroyed or
damaged by fire, flood, explosion, act of God or other accident or
catastrophe.
F. Secondary Dwelling Units as defined and approved pursuant to
LGTC Section 29.10.
25.60.090 Findings and Notice.
Pursuant to Government Code Section 65970 et seq., the governing body of a
school district may make a finding supported by clear and convincing evidence
that:
A. Conditions of overcrowding exist in one or more attendance areas
within the district which will impair the normal functioning of educational
programs, including the reason for such conditions existing;
B. All reasonable methods of mitigating conditions of overcrowding
have been evaluated;
C. No feasible method for reducing such conditions exists. Upon
making these findings, the school district must provide the Town with
written notice of its findings as provided in Section 16.60.100.
Page 4 of 10
25.60.100 Findings -- Requirements.
Any notice of findings sent by a school district to the Town shall specify:
A. The findings listed in Section 16.60.090;
B. Findings of facts and summary of the evidence upon which the
findings in Section 16.60.090 were based;
C. The mitigation measures and methods, including those listed in
Section 16.60.070 considered by the school district in any determination
made concerning them by the district;
D. The precise geographic boundaries of the overcrowded attendance
area or areas;
E. Such other information as may be required by a Council
regulation.
25.60.110 Concurrence by Town.
After receipt of any notice of findings complying with the requirements of Section
25.60.100, the Council, if it concurs with such school district findings, shall do so
by resolution.
25.60.120 Findings for development approval.
Within an attendance area where the Council has concurred in a school district's
notice of finding that conditions of overcrowding exist, no decision - making body
shall approve an application for a residential development within such area, unless
such decision - making body makes one of the following findings:
A. That pursuant to this chapter, provision has been made for payment
of fees, dedication of land, or both, or some other provision has been
agreed upon by the applicant for a residential development in the school
district to mitigate the conditions of overcrowding with that attendance
area; or
B. That there are specific, overriding fiscal, economic, social, or
environmental factors, which, in the judgment of the decision - making
body, would benefit the Town, thereby justifying the approval of a
residential development otherwise subject to the provisions of this chapter
without requiring the payment of fees or the dedication of land or other
alternate provision required by Section 16.60.120.
25.60.130 Payment of fees -- Dedication of land.
In an attendance area where the Council has concurred as provided in Section
25.60.090 that overcrowding exists, the applicant of a proposed residential
Page 5 of 10
development, as a condition of approval, or the obtaining of a building permit,
shall pay fees, make an equivalent arrangement in lieu thereof, dedicate land, or
do a combination thereof; unless excepted as provided in Sections 16.60.080 and
16.60.120, as determined by the decision - making body during the hearings and
other proceedings on specific residential development applications falling within
their respective jurisdictions. Prior to the imposition of the fees, or the dedication
of land, or both, it shall be necessary for the decision - making body acting on the
application to make the following determination: that the facilities to be
constructed, purchased, leased, or rented from such fees or the land to be
dedicated, or both, are consistent with the general plan.
25.60.140 Payment of fees in small residential developments.
When this chapter applies to a residential development, only the payment of fees
may be required in subdivisions containing fifty parcels, or less, or other
developments containing fifty units, or less.
25.60.150 Determination of fees or land.
Any requirement imposed pursuant to this chapter shall bear reasonable
relationship and will be limited to the needs of the community for interim school
facilities, and shall be reasonably related and limited to the need for the schools
caused by the development, provided the fees shall not exceed the amount
necessary to pay five annual lease payments for the interim facilities. In lieu of
the fees, the builder of a residential development may, at his or her option and at
his or her expense, provide interim facilities, owned or controlled by such builder,
at the place designated by the school district, and at the conclusion of the fifth
school year the builder shall, at the builder's expense, remove the interim
facilities from such place. If the school district has entered into an agreement
with the applicant for the residential development to mitigate conditions of
overcrowding within the attendance area covered by the application, the
governing body of the affected school district shall, upon receipt of the
notification required by Section 25.60.200, so advise and transmit a copy thereof
to the Town engineer. Receipt of such an agreement shall be evidence that the
conditions of overcrowding as related to the residential development no longer
exists and applicant shall be relieved of any further requirements of this chapter.
25.60.160 Standards for fees and land dedications.
The standards for the amount of fees or dedicated land required shall be
recommended by the governing board of each school district where a
determination has been made pursuant to Section 16.60.090 that conditions of
overcrowding exist. Such standards and facts supporting them shall be
transmitted to the Town Council. If the Town Council concurs with such
Page 6 of 10
standards, they shall, until revised, be used by decision - making bodies in
situations where dedications of land, fees or interim facilities are required as a
condition to the approval of a residential development. Nothing in this chapter
shall prevent the Town Council from establishing and using standards other than
those established by the school district in the event that the Council does not
concur in those transmitted by the district.
25.60.170 Fee required.
If the payment of a fee is required, such payment shall be made at the time the
building permit is approved and issued. Fees shall be held in trust by the Town
until transferred to the affected school district or districts.
25.60.180 Land dedication.
When land is to be dedicated, it shall be offered for dedication in substantially the
same manner as prescribed in the Town subdivision ordinance. Land shall be
deeded directly to the school district or districts under procedures adopted by the
Town.
25.60.190 Refunds.
A. If a final subdivision map, a parcel map, or conditional use permit is
vacated or voided, and the Town still retains the lands and if the applicant so
requests, the council shall order such land returned.
B. If a residential development approval is vacated or voided, and if the
Town still retains the fees collected therefor, and if the applicant so requests, the
Council shall order the fees returned to the applicant.
25.60.200 School district schedule.
Following concurrence by the Council pursuant to Section 25.60.110, the Town
Manager shall notify each school district affected thereby. The governing body of
the school district shall then submit a schedule specifying how it will use the fees,
land or interim facilities to solve the conditions of overcrowding. The schedule
shall include the school sites to be used, the classroom facilities to be made
available, and the time when such facilities will be available. In the event the
governing body of the school district cannot meet the schedule, it shall submit
modifications to the Town Council and reasons for the modifications.
Page 7 of 10
25.60.210 Use of funds.
All fees, land or interim facilities collected pursuant to this chapter and
transferred to a school district, shall be used only by the district for the purpose of
providing interim school classroom and related facilities.
25.60.220 Agreement for fee distribution.
If two separate school districts operate schools in an attendance area where the
Council concurs that overcrowding conditions exist for both school districts, the
Council will enter into an agreement with the governing body of each school
district for the purpose of determining the division of revenues from the fees
levied pursuant to this chapter.
25.60.230 Account.
Any school district receiving funds or land pursuant to this chapter shall maintain
a separate account for any fees paid and disposition of land received, and shall file
a report with the Council on the balance and account at the end of the previous
fiscal year and the facilities leased, purchased, or constructed during the previous
fiscal year. In addition, the report shall specify which attendance areas will
continue to be overcrowded when the fall term begins and where conditions of
overcrowding will no longer exist. Such report shall be filed by August 1st of
each year, and shall be filed more frequently at the request of the Council.
25.60.240 Termination of dedication requirements.
A. When it is determined that conditions of overcrowding no longer exist in
the school district, the Town shall cease levying any fee or requiring the
dedication of any land pursuant to this chapter for that area. Action under this
section shall not affect the validity of conditions already imposed for levy of fees
and dedications of land and such conditions shall remain binding.
B. If a school district, which has notified the Town Council that conditions of
overcrowding exist in one or more attendance areas of the district, receives an
apportionment pursuant to the Leroy F. Green State School Building Lease
Purchase Law of 1976 (Chapter 22, commencing with Section 17700, of Part 10
of the Education Code), it shall immediately notify the Town Council. Upon
receipt of such notice, decision - making bodies shall cease levying any fee or
requiring the dedication of any land for that district pursuant to this chapter.
Page 8 of 10
Action under this section shall not affect the validity of conditions already
imposed for levy of fees and dedications of land and such conditions shall remain
binding.
SECTION II: Any provision of the Los Gatos Town Code or appendices thereto
inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no
further, is hereby repealed or modified to that extent necessary to effect the provisions of this
Ordinance.
SECTION III: If any section, subsection, sentence, clause, or phrase of this Ordinance
is for any reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The Town Council hereby declares that it would have passed this Ordinance and
each and every section, subsection, sentence, clause, or phrase not declared invalid or
unconstitutional without regard to whether any portion of the ordinance would be subsequently
declared invalid or unconstitutional.
SECTION IV: The Mayor shall sign and the Town Clerk shall attest to the passage of
this Ordinance. The Town Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days
from its adoption.
This Ordinance was introduced at a Regular meeting of the Town Council of the Town of
Los Gatos, on September 1, 2015, and adopted by the following vote as an ordinance of the
Town of Los Gatos at a Regular meeting of the Town Council of the Town of Los Gatos,
California, held on the 15'h day of September 2015. This ordinance takes effect 30 days after it is
adopted.
COUNCIL MEMBERS:
AYES:
NAYS: ABSENT:
ABSTAIN
Page 9 of 10
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Page 10 of 10
HAND DELIVERED
April 17, 2015
Town of Los Gatos
Attn: Leslie R. White, Interim Town Manager
110 E. Main Street
Los Gatos, CA 95030
Los Gatos Union School Distri
17010 Roberts Roa
Los Gatos, CA 9503
(408) 335 -2000 Phor
(408) 395 -6481 Fa
www.lgusd.kl2.ca.L
Dr. Diana G. Abbati, Superintendent
APR 17 2015
TOWN OF LOS GATOS
PLANNING DIVISION
RE: Notice of Findings of Overcrowding for the Los Gatos Union School District
School Facilities Act pursuant to Government Code section 65971
Dear Mr. White:
I am writing to you on behalf of the Los Gatos Union School District ( "District "). The District has evaluated
proposed new development within the Town of Los Gatos ( "Town ") and has determined that new residential
development will continue to cause overcrowding in its schools, and no other feasible mitigations are available to
reduce the overcrowding.
This letter and attachments provide the District's Notice of Findings for Overcrowding ( "Notice ") to you, the Town
Council Members and the Planning Commissioners, This Notice sets forth the District's findings and evidence in
support of those findings pursuant to Government Code section 65971 along with the completed application to the
Office of Public School Construction for preliminary determination of eligibility. To remedy the District's concerns
of overcrowding, the School Facilities Act permits the Town, by ordinance, to require the dedication of land, the
payment of fees in lieu thereof, or a combination of both, for classroom and related facilities as a condition to the
approval of residential development.
We request that the Town, after receipt of this notice and pursuant to Government Code sections 65970 et seq.,
submit to the District, the approved ordinance for additional developer fees as outlined in this Notice.
Thank you for your prompt consideration of this request. Please feel free to contact me if you have any questions.
Sincerely,
Diana G. Abbati, Ed.D.
Superintendent
cc: Board of Trustees, Los Gatos Union School District
,Martin Fregoso, Assistant Superintendent- Business Services /CBO, Los Gatos Union School District
/ Laurel Prevetti, Assistant Town Manager, Town of Los Gatos
Mayor Marcia Jensen, Town Council, Town of Los Gatos
Kendra Burch, Chair, Planning Commission, Town of Los Gatos
Suzanne Carrig, Santa Clara County Committee on School District Organization
ATTACHMENT
LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
CONTENTS
EXECUTIVE SUMMARY 3
OVERVIEW - SCHOOL FACILITIES ACT 4
FACTUAL BACKGROUND 5
• SECTION I: DISTRICT AND ITS FACILITIES 5
• SECTION 2: TOWN PLANNING AND PROPOSED NEW DEVELOPMENT 10
FINDINGS AND EVIDENCE TO SUPPORT OVERCROWDING
• FINDING 1
• FINDING 2
10
13
DEVELOPMENT MITIGATION SCHEDULE TO REDUCE OVERCROWDING 16
• TABLE 6: DEVELOPMENT MITIGATION SCHEDULE 17
ATTACHMENTS
A — SCHOOL FACILITES ACT — GOVERNMENT CODE 65970 -65981
B - OFFICE OF PUBLIC SCHOOL CONSTRUCTION APPLICATION, 4113115
C - RESOLUTION #11 -14 -15 NOTICE OF FINDINGS FOR OVERCROWDING
D - DISTRICT'S IMAGINE 2022 FACILITIES MASTER PLAN, 12/4/12
E — DISTRICT'S DEMOGRAPHIC STUDY DATED, 2014
• STUDENT POPULATION PROJECTIONS BY RESIDENCE
F - IMPORTANT INFORMATION ABOUT MEASURE B, 2001
2 1 P a g e
LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
EXECUTIVE SUMMARY
The Los Gatos Union School District ( "District "), located within the boundaries of the Town of
Los Gatos, serves over 3,300 students in transitional kindergarten through eighth grade. The
District operates five schools including: Blossom Hill Elementary, Daves Avenue Elementary,
Lexington Elementary, Louise Van Meter Elementary, and R. J. Fisher Middle School.
Enrollment has grown annually from 2,587 students in the 2006 -2007 school year to 3,345
students in the 2014 -2015 school year. The most likely cause of growth was from a positive net
migration of families with school age children moving into the District. While mobility rates
(e.g., the gauge of net migration) continue to be positive, the known and active residential
developments along with some speculative projects will likely result in an increase in overall
student population and continue to overcrowd our schools.
Based on the California Department of Education ( "CDE ") recommended acreage for school
sites, it is a fact that the district today would benefit from an additional seven acres of land to
properly house our current student enrollment and right -size our K -8 campuses (see Table 1). In
addition, total enrollment at our school sites exceeds the recommended acreage capacity by 324
students. In the District's Demographic Study (2014), the demographers project enrollment to
increase by another 305 students due to new development within district boundaries.
Subsequently, the District will need to plan for additional facilities. More specifically, the
District would need an additional six acres of land above the already mentioned seven acres to
educate new students generated by development based on CDE recommended acreage.
As a remedy, the enactment of the School Facilities Act - Government Code sections 65970 et
seq. permits a city or town to impose additional mitigation obligations on residential
development to alleviate the impact of overcrowding in schools.
The Governing Board of the Los Gatos Union School District submits this Notice of Findings for
Overcrowding ( "Notice of Findings "), supported by clear and convincing evidence required by
Government Code section 65971, and requests the Town to remedy the District's concerns by
imposing additional mitigation obligations on residential development to alleviate the impact of
overcrowding in schools caused by new development.
The proposed development mitigation schedule (see Table 6) is based on the cost to obtain six
acres of land to house 305 additional students. The schedule does not take into consideration
future construction and program costs that the District will continue to plan for. The proceeds
from additional developer fees would be used to expand school facilities for increased
enrollment.
31Pa—, e
LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
OVERVIEW - SCHOOL FACILITIES ACT
Through the enactment of the School Facilities Act - Government Code sections 65970 et seq.,
the California Legislature has declared its intent regarding overcrowding of schools caused by
residential development and has clearly acknowledged that:
a) Adequate school facilities should be available for children residing in new residential
developments.
b) Public and private residential developments may require the expansion of existing public
schools or the construction of new school facilities.
c) Funds for the construction of new classroom facilities are not available when new
development occurs, resulting in the overcrowding of existing schools.
d) New housing developments frequently cause conditions of overcrowding in existing
school facilities, which cannot be alleviated under existing law within a reasonable period
of time.
To remedy these concerns, Government Code sections 65970 et seq. permits a city or town to
impose additional mitigation obligations on residential developers to alleviate the impact of
overcrowding in schools caused by new development. However, before a developer may be
required to dedicate land or pay a fee in lieu thereof pursuant to sections 65970 through 65981,
the governing board of a school district which operates an elementary or high school shall make
the written findings, supported by clear and convincing evidence, required by Government Code
section 65971 and notify the city or town council of its findings.
The findings required by section 65791 include:
1. That conditions of overcrowding exist in one or more attendance areas within the
district that will impair the normal functioning of educational programs, including the
reason for the existence of those conditions (i.e., new residential development); and
2. That all reasonable methods of mitigating conditions of overcrowding have been
evaluated and no feasible method for reducing those conditions exists.
The District has evaluated proposed new development within the Town of Los Gatos, and has
determined that new residential development will cause additional overcrowding in its schools
and no other feasible mitigations are available to reduce the overcrowding.
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LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
FACTUAL BACKGROUND
SECTION 1: THE DISTRICT AND ITS FACILITIES
The Los Gatos Union School District, located within the boundaries of the Town of Los Gatos,
serves over 3,300 students in transitional kindergarten through eighth grade. The District
operates five schools, including: Blossom Hill Elementary, Daves Avenue Elementary,
Lexington Elementary, Louise Van Meter Elementary, and R. J. Fisher Middle School.
1. Size and capacity of District facilities
The District has grown annually from 2,587 students in the 2006 -2007 school year to 3,345
students in the 2014 -2015 school year. During this timeframe there was only a minimal amount
of new housing units built within the District boundaries, suggesting growth was caused by other
factors rather than new development. The most likely cause of growth (see Attachment E —
District's Demographic Study, 2014) was from a positive net migration of families with school
age children moving into the District. While mobility rates (e.g., the gauge of net migration)
continue to be positive, the known and active residential developments along with some
speculative projects are expected to result in an increase in overall student population.
Next, local control and parental prerogative, two hallmarks of the state's new transitional
kindergarten program, has also increased enrollment across the District's elementary schools.
Transitional kindergarten was offered for the first time in the 2012 -13 school year requiring the
District to offer transitional kindergarten to children with fifth birthdays beginning in September.
This change in the law requires a new program to educate these children for up to two years of
kindergarten before moving graduating these students to first grade. In fact, as families become
more familiar with the option of choosing transitional kindergarten instead of private preschools,
additional classroom spaces will be needed to alleviate for overcrowding in kindergarten.
Furthermore, the Town of Los Gatos may not be aware of the recent territory transfer petition
from the Union School District to the Los Gatos Union School District. The application is
currently under review by the Santa Clara County Committee on School District Organization
for the territory transfer of 59 parcels. While the petitioners contend that the properties would
only add five public school students, the petitioner does not cite non - public school students who
live within this territory and may wish to attend the District's schools. The District predicts that
the 59 properties can generate up to 23 new students based on the District's student generation
factor of 0.386. Any students generated from the approval of this territory would add to the
District's overcrowding at our elementary and middle schools.
1. Policies related to school bond measures and school programs
On June 5, 2001, Measure B, a $91 million local bond measure to raise local funds to finance
critically needed repairs and upgrades of our five schools was approved by 84.4% of the voters
to build new classrooms to relieve severe overcrowding and allow for class -size reduction.
Former Town of Los Gatos Mayor Joanne Benjamin (2001) in support of Measure B stated,
5 1 Page
LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
"Our schools have a well- deserved reputation.for quality academic programs. But our school
facilities have aged to the point that they are affecting teaching and learning. " (See Attachment
F - Important Information About Measure B, 2001)
Furthermore, in 2009 Los Gatos residents approved a $30.9 million local bond measure. This
additional bond measure was needed to accommodate increasing student enrollment by creating
additional classrooms and school facilities to avoid overcrowding, and at the same time, maintain
class -size to the Los Gatos community standards.
For over a decade, the District has experienced increased student enrollment all the while
maintaining its reputation of excellence with limited resources. Quality schools mean quality
neighborhoods. It is a fact that the resale value of homes in the Los Gatos community is directly
affected by the quality of schools. Increasing enrollment at any of our five schools — even a small
number — will impact the District's facility needs and will disrupt the educational program
quality for current and future students.
The California Department of Education ( "CDE ") recommended guidelines for acreage for an
elementary and middle school site are noted below:
Table 1: LOS GATOS UNION SCHOOL DISTRICT STATE OF FACILITIES — SPRING 2015
Source: Attachment B — Office of Public School Construction Application, 4113115
School Site
Current
Acreage
CDE
Recommended
Acreage
Current
Enrollment
CDE
Recommended
Enrollment
Overcrowded
Acreage
+/-
Overcrowded
Enrollment
+/_
Blossom Hill
10.59
11.85
675
616
1.26
+59 students
Doves
8.49
10.09
575
489
1.60
+86 students
Lexington
5.00
2.89
165
298
-2.11
-133 students
Van Meter
8.50
11.77
671
491
3.27
+180 students
Fisher 1
23.13
1 26.37
1 1,235 1
1,103
3.24
+132 students
NET OVERCROWDING ACREAGE/ENROLLMENT
7.26 acres
+324 students
As depicted in Table I, our school facilities are overcrowded to the point that they are affecting
teaching and learning in the 215` century. In fact, the additional 324 students warrants additional
land needed to build a new school, specifically 7.26 acres. Facilities and continued
modernization are needed to ensure a quality and competitive learning environment for our
students. For example, our classrooms are inadequate for today's instruction. We have limited
classroom facility space for science labs, literacy centers, music and art classrooms — and even
when we adjust and make due with what we have — our cafeterias and multipurpose rooms are
not right -sized for the number of students enrolled at each school. In order to provide a
sustainable learning environment in which our students can continue to learn and achieve
academically, socially and emotionally, we need the facilities to provide quality educational
programs that support:
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LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
1. Reduced class size;
2. Flexible learning environments (e.g., STEM - Science, Technology, Engineering and
Mathematics); and
3. Modernized indoor and outdoor physical education spaces.
3. Policies related to educational equity and school structure, school size and overcrowding
Over the years, the District has used its resources from surplus property and developer fees to
build and modernize facilities. Schools are valued as a community asset for both the families
who attend our schools as well as a priority by our community members as evidenced by the
passage of local bond measures (see Attachment F— Important Information About Aleasure B,
2001). It is a known fact that the quality of the learning environment significantly impacts
student achievement. No child should have to wait years before its school is brought up to the
Los Gatos standard of excellence. The District is not only overcrowded by State standards (see
Table 2), but the District is overcrowded by Los Gatos standards and will need 20 new
classrooms within the next five years and 23 new classrooms in the next ten years to meet our
local loading ratios (see Table 3 and Table 4).
Furthermore, sociological theory has confirmed and identified the organizational characteristics
of effective schools. Substantial evidence supports which responses to school overcrowding are
appropriate, specifically reducing class size and building more schools rather than adding
portable classrooms. For example, in school climate studies, connections between students and
teachers are more positive when linked to smaller schools. Hence, enrollment size is an
important feature for determining the program quality of any educational organization.
After a decade of construction and modernization, class size in the District has increased from 20
to 24 students in grades K -3, and from 25 to 29 students in grades 4 -8 due to the lack of
resources and classroom space to reduce class size. By far the most compelling evidence to
reduce class size's positive effects on academic achievement comes from hundreds of studies
over several decades. Major findings to date include:
• Students in small class size (e.g., small class size between 13 -17 students) performed
better at all K -3 grade levels than students in larger classes;
Teachers spent more time on direct instruction and less on classroom management in
smaller classes;
• The more years students spent in small classes, the longer the benefits lasted in schooling.
As illustrated in Table 1, six to seven acres are needed in total to build another elementary school
to accommodate approximately 350 students.
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LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
4. Policies related to safety and health, as well the Los Gatos Elementary Teachers Association
dictating maximum classroom size /loading ratios
The District makes every effort to maintain equity across the District and purposefully does not
increase enrollment at any one school as a strategy to maintain the educational integrity of
programs for all students set forth in policies outlined in No Child Left Behind, School Facilities
Program Regulation Section 1859.82 outlining conditions for health and safety of pupils, and
more recently, recommendations outlined in the Local Control Funding Formula. In addition,
increased enrollment would place a financial hardship on the District as outlined in the collective
bargaining agreement between the District and the Los Gatos Elementary Teachers Association,
Article 8 -Class size, sections 8.3 and 8.6.
More specifically, Daves Avenue Elementary, Blossom Hill Elementary and Louise Van Meter
Elementary, will exceed the class size ratios as outlined in the collective bargaining agreement at
24 for grades K -3 and 28 for grades 4 -8. Concurrently, students who reside within the District
boundaries wishing to attend Blossom Hill Elementary, Louise Van Meter Elementary, and
Daves Avenue Elementary have been displaced to Lexington Elementary School since our three
other elementary schools are over capacity by CDE recommended guidelines.
5. Ongoing construction projects intended to increase current capacity
In November 2014, the Board of Trustees approved the $14.2M Fisher Sports Complex at R.J.
Fisher Middle School to address the short term growing enrollment concerns in grades 6 -8. The
Fisher Sports Complex will add four additional teaching spaces and new locker rooms needed to
support a 1,500- student campus and address the federal mandate to provide 200 minutes per
week of physical and health education to our middle school students.
After completing the Fisher Sports Complex, along with all modernization projects outlined in
Measure B and Measure E, the District's capital reserves for new construction is projected to be
only $300K for planning future facilities to address the enrollment growth resulting from new
development in Los Gatos.
6. Key findings and conclusions in District's demographic study
In the fall 2014, the District contracted with Davis Demographics & Planning, Inc.
( "Demographers ") to update and analyze demographic data relevant to the District's facility
planning efforts. The Demographers report explained that enrollment growth is based upon three
factors that affect student population: (1) mobility which measures the migration of students in
and out of the District (including move -ins, move -outs, new students from infill housing, drop
outs, private school movement, etc.; (2) incoming kindergarten class (i.e., partially determined
from recent birth data by zip code); and (3) new residential development and student yield
factors. With the information available at this time, the Demographers are in the opinion that
future student population will continue to increase as outlined in the demographic report
attached. Enrollment is expected to increase by approximately 350 students over the next ten
years.
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LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
The expected enrollment growth creates a need to house these students. The current facilities in
the District are not sufficient to house the projected enrollment growth, and it remains a fact that
the District does not have the available land needed to build a new school site.
7. Key findings from District's Imagine 2022: Facilities Master Plan
Over a period of 18 months, a full range of options was developed by community stakeholders to
solve growth in the District. While the community's priorities include schools with lower
enrollment and smaller class size, some concepts ambitiously solve growth comprehensively and
simultaneously reduce the sizes of the District's existing schools. Some of these options explored
would require an operational shift within the District by the creation of new school models.
These range from different grade structures such as K -4, 5 -8, or K -8 schools. Other solutions
could offer the District opportunities for a specialized school of choice or magnet school to off
load future growth. These could be structured in a wide range of different academic models as
well.
The options above were presented to explore future facility needs — not endorse any specific
academic structure for a new school. Academic planning was beyond the scope of this study.
Although most of these ambitious scenarios could significantly transform the District and greatly
expand the educational offerings of the District, they have a larger financial impact and greater
effect on the operational structures of the District. Other options to solve growth limit the study
to solving the present short term needs. These balance the spectrum with a more cost effective
approach.
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LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
SECTION 2: TOWN PLANNING AND PROPOSED NEW DEVELOPMENT
The Town has been proceeding with approvals of the North 40 Specific Plan development
activities. In addition, the Town has been reviewing proposed revisions to the Housing Element
contained in the Town's General Plan. Recent proposed revisions include several mid -to -high
density residential development projects ( "Housing Element "). Once built out, the District
estimates that a minimum of 562 additional units will be added to the Town's housing inventory.
The District estimates that the actual number of housing units that will be added in the next ten
years will be much higher due to infill development and conversion of existing lots to residential
use. Current demographic projections only include known developments and generally exclude
projects that are less than 10 units.
Given the clear constraints and limitations on the District's existing facilities, there is no doubt
that future development will put a strain on the District's existing facilities to the detriment of the
District's existing educational program.
FINDINGS AND EVIDENCE TO SUPPORT OVERCROWDING
FINDING 1:
The District finds and determines that as a result of new development planned within the Town of
Los Gatos including in-
fill development ofsmaller parcels and additional residential
development contemplated in the Town's Housing Element, conditions of overcrowding exist in
one or more attendance areas within the District that will impair the normal functioning of the
District's educational programs.
Evidence in Support of Finding 1: California Department of Education (CDE) Capacity
Analysis
Government Code section 65973(a) defines "conditions of overcrowding" as meaning that "the
total enrollment of a school, including enrollment from proposed development, exceeds the
capacity of the school as determined by the governing body of the district and the policies related
to educational equity, school structure and programs listed in Section 1 of this Notice of
Findings.
Based on CDE loading standards (e.g., based on CDE acreage recommendations as shown in
Table 1), the District calculated the percentage and extent of overcrowding at each of its school
sites as set forth in Table 2:
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LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
Table 2: LOS GATOS UNION SCHOOL DISTRICT CAPACITY ANALYSIS
School Site
Current
Enrollment
CDE
Recommended
Enrollment
+/-
Overcrowded
Enrollment
Overcrowded
Enrollment
Blossom Hill Elementa K -5
675
616
+59 students
9.6%
Daves Avenue Elementa K -5
575
489
+86 students
17.6%
Lexin ton Element— 'K-91
165
248
i33 students
44.4%
Louise Van Meter Elementa K -5
671
491
+180 students
36%
R. J. Fisher Middle School (6 -8
1,235
1,103
+132 students
12%
TOTAL
3,321
2,997
+324 students
10.8%
Evidence in Support of Finding 1: Classroom Size and Structure
As stated in Section 1: Policies related to school bond measures and school programs, 84.4% of
Los Gatos voters support class size reduction and school structures with ratios of 20:1 students -
to- teacher ratios for grades K -3, and 25:1 students -to- teacher ratios for grades 4 -8. (See
Attachment F- Important Information About Measure B, 2001). Table 3 and Table 4 show the
additional classrooms needed to implement this program today as well as for future projected
enrollment.
Table 3: LOS GATOS UNION SCHOOL DISTRICT 5 -YEAR ENROLLMENT PROJECTIONS
CLASSROOMS NEEDED TO REDUCE CLASS SIZE
(Source: Attachment E: District's Demographic Study, 2014)
IIIPage
5 -Year Projections
2014 -2019
Davis Demographics' Projections
Fall 2014
Grades
Grades
K -5
6 -8
Additional
Additional
Total
Classrooms
Classrooms
Classrooms
20:1 Ratio
25:1 Ratio
Needed
Projection
No future development
(
5
11
A
Projection
Known and approved development
B
8
7
15
Projection
All known future development,
C
moderate density
12
8
20
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LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
Table 4: LOS GATOS UNION SCHOOL DISTRICT 10 -YEAR ENROLLMENT PROJECTIONS
CLASSROOMS NEEDED TO REDUCE CLASS SIZE
(Source: Attachment E. District's Demographic Study, 2014)
Evidence in Support of Finding 1: Development Growth
The District's demographic report (2014) projects enrollment to peak at 3,359 students in the
2016 -2017 school year if no additional housing is developed in the Town (e.g., Projection A). In
contrast, the same report is projecting a peak of 3,663 students (e.g., Projection C) taking into
account all known future development, with moderate density. The District anticipates that
development may be higher than predicted once small developments (e.g., single family homes,
lot conversions, and subdivisions) are added.
The student enrollment growth strictly correlated to known additional development is expected
to generate 304 students as stated in the demographic report. In order to house these students the
District will need to purchase land at a minimum six acres in total using a density of 50 students
per acre. Preliminary discussions with real estate consultants to identify the purchase of land and
potential costs indicate that commercial acreage, if available, costs between $3 -4 million per
acre. Subsequently, industry standards and consultants anticipate the cost of land will continue to
increase in the near future.
If commercial parcels were available today, the District's approximate cost to obtain such
acreage would be between $18 -24 million for land acquisition. Any funds received by the
imposition of additional mitigation obligations on residential developers would be used strictly
for the expansion of school facilities.
121Page
10 -Year Projections
2014 -2024
Davis Demographics' Projections
Grades
Grades
Fall 2014
K -5
6-8
Total
Additional
Additional
Classrooms
Classrooms
Classrooms
Needed
20:1 Ratio
25:1 Ratio
Projection
No future development
3
2
5
A
Projection
Known and approved Development
B
7
6
13
Projection
All known future development,
C
moderate density
14
9
23
Evidence in Support of Finding 1: Development Growth
The District's demographic report (2014) projects enrollment to peak at 3,359 students in the
2016 -2017 school year if no additional housing is developed in the Town (e.g., Projection A). In
contrast, the same report is projecting a peak of 3,663 students (e.g., Projection C) taking into
account all known future development, with moderate density. The District anticipates that
development may be higher than predicted once small developments (e.g., single family homes,
lot conversions, and subdivisions) are added.
The student enrollment growth strictly correlated to known additional development is expected
to generate 304 students as stated in the demographic report. In order to house these students the
District will need to purchase land at a minimum six acres in total using a density of 50 students
per acre. Preliminary discussions with real estate consultants to identify the purchase of land and
potential costs indicate that commercial acreage, if available, costs between $3 -4 million per
acre. Subsequently, industry standards and consultants anticipate the cost of land will continue to
increase in the near future.
If commercial parcels were available today, the District's approximate cost to obtain such
acreage would be between $18 -24 million for land acquisition. Any funds received by the
imposition of additional mitigation obligations on residential developers would be used strictly
for the expansion of school facilities.
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LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
FINDING 2:
The Districtfinds and determines that all reasonable methods ofmitigating conditions of
overcrowding have been evaluated and no feasible method for reducing those conditions exists.
Evidence in Support of Finding 2:
Government Code section 65973(a) defines "reasonable methods for mitigating conditions of
overcrowding" as including, but not limited to, agreements between a sub - divider or builder and
the affected school district whereby temporary -use buildings will be leased to the school district
or temporary-use buildings owned by the school district will be used and agreements between the
affected school district and other school districts whereby the affected school district agrees to
lease or purchase surplus or underutilized school facilities from other school districts. In
addition to these criteria, the District also evaluated several other mitigation options, all of which
are discussed in detail.
The reasonable methods of mitigating conditions of overcrowding which have been considered
by the District and the determination made concerning them are as follows:
1. Agreements with Developers
The District has been working diligently with the developers within the North 40 Development
on potential mitigations and voluntary contributions to reduce the impact on schools resulting
from new development, including overcrowding for Blossom Hill Elementary, Louise Van Meter
Elementary, Daves Avenue Elementary, and R.J. Fisher Middle School within the District.
These mitigations include dedication of land and/or payment of voluntary fees on a per - dwelling
unit basis for market rate housing elements that are predicted to generate increased student
enrollment based on the District's recent demographic study.
2. Availability of Funding
Restricted Funds: Currently, there are typically two types of restricted funds from which a
school district can draw to purchase property and /or construct capital projects. They are
developer fees and surplus property sale proceeds. The District currently collects developer fees
at a rate of $2.29 for residential projects and $.34 for commercial projects. Today, this is the
maximum fee amount that the District is entitled to collect under the current law.
Currently, the District has no additional funding that can be used to offset the impact of new
growth in the District since it has utilized developer fees collected to date for the cost of the new
and modernized R.J. Fisher Sports Complex in the amount of $14.2M. In addition, the District
can only utilize developer fees generated by new development as those proceeds trickle into the
District's coffers. It has long been established and accepted that developer fees fall short of what
is needed to adequately mitigate the impact of growth induced by new residential development.
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LOS GATOS UNION SCHOOL DISTRICT
NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
Based on current student generation rates and construction costs, developer fees pay
approximately one -third of the cost to build a classroom. This excludes land and other ancillary
space that is needed to house students. On a per student basis, current developer fees generate
approximately $12,000 - $15,000 per student. Taking into account the purchase of land, the cost
to build a new school is approximately $121,000 per student.
In addition, the District does not have surplus funds for capital projects nor does the District
currently hold title to surplus property that can be sold to generate funds to mitigate the impact of
growth in the District.
General Fund Revenues: The District is not in a position to utilize proceeds from the General
Fund to mitigate the impact of development through the purchase of land or construction of
facilities. General Fund Revenues are dedicated to support educational programs (e.g., books,
supplies, and teacher /staff salaries). Any reduction in General Funds for construction or land
would impair the normal functioning of educational programs within the District. Simply stated,
there are no excess General Funds that can be dedicated for future facility projects. In fact, few
people know that the Federal government provides almost no funding to our five public schools.
In 2013 -2014 California ranked 49th overall in how much it spends per student. California
remains near the bottom nationwide in per student spending (source: Quality Counts 2012). For
the District, adjusted for inflation, spending per pupil has actually fallen from $9,242 in 2010 to
$9,099 in the 2014 -2015 school year, about $2,500 below the national average of $11,665.
State Bond Proceeds: As required by Government Code section 65971(b)(1), the District has
attached a completed application to the Office of Public School Construction ( "OPSC ") for
preliminary determination of eligibility under the Leroy F. Greene State School Building Lease -
Purchase Law of 1976 (Education Code section 17000 et seq.). It is a fact that the state's
construction bond funding system has been tapped for years. As it stands, according to OPSC,
the state has already approved over $2 billion dollars in projects for which there is no state
funding. If the District's application were approved, it would fall in line behind an already
insurmountable list of projects for which there is no state funding.
Proceeds for Local Bond Measures: All Measure E and Measure B funds have been allocated
for the modernization and construction of all existing District schools. Hence, there are no bond
proceeds available today for new construction. The District would need to plan for a new local
facilities bond measure and the ballot initiative would need to be passed by at least 55% of the
voters to cover the cost of new construction.
3. Use of Existing District Property
As noted in the Factual Background section above, the District's facilities cannot accommodate
additional growth without modernization and the addition of new classroom space. Current
enrollment at each school site is already overcrowded by CDE recommended guidelines for
elementary and middle schools (see Table 2). Multi- purpose buildings and other ancillary
facilities are already far too small for the current enrollment. Additional classrooms will
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NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
deteriorate the quality of education due to excessive overcrowding conditions. For more specific
information, reference the Imagine 2022: Los Gatos Union School District Facilities Master
Plan, dated December 14, 2012.
4. Use of Property of Neighboring School Districts
There are approximately six elementary school districts that are immediately adjacent to and/or
overlap the District's boundaries. These school districts include: Cambrian, Union, Saratoga,
Lakeside, Loma Prieta and the Campbell School districts. These six elementary districts are
located outside of the boundaries of the District and therefore would require the District to obtain
a waiver form CDE to operate an educational program for students in grades K -8. Thus, it is not
feasible for the District to seek space from neighboring districts without the need for a state
waiver.
Notwithstanding the practical and legal limitations associated with operating a program in the
facilities of another school district, District staff contacted each of the neighboring and
overlapping school districts to determine if any classroom space and/or property is available to
help the District mitigate the impact of planned development. The responses from the districts
were as follows:
TABLE 5: RESPONSE FROM NEIGHBORING SCHOOL DISTRICTS
NEIGHBORING SCHOOL DISTRICT RESPONSE TO RE UEST FOR SPACE /LAND
Loma Prieta Elementa Nos ace available
Lakeside Elementary Nos ace available
As illustrated in the Table 5 above, there is no classroom space or land available to the District
from neighboring and overlapping school districts.
S. Acquisition of Property
The District seeks to acquire six acres of land to address elementary and middle school growth.
Commercial property is currently valued at approximately $3 to 4 million per acre. Residential
property has a much higher value and therefore the District would not pursue land that is zoned
for residential use.
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NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
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DEVELOPMENT MITIGATION SCHEDULE TO REDUCE OVERCROWDING
At this time, on a per student basis, statutory developer fees generate approximately
$12,000 - $15,000 per student. Today the cost to purchase land for a small school site within the
District's boundaries is approximately $18 -$24 million. Construction of a school is
approximately $18 -$20 million. Hence, the total cost to build a small school with a capacity of
305 students is approximately $36444 million.
The rationale for determining the increase in developer fees to mitigate student growth is as
follows:
• The cost to purchase new land equates to a cost of approximately $62,000 per new
student for the District.
• The average square footage for all new residential development in the Town of Los Gatos
is estimated at 2,500 square feet.
• Applying the student generation rate of 0.386 (see Attachment E — District's
Demographic Study, 2014) the District requests an increase in developer fees based on
the cost of land and average square footage for all new residential development. This
equates to an additional $9.57 per square foot for each new residential unit as outlined in
Table 6.
The District requests that the Town of Los Gatos pass an ordinance imposing the following fee
structure on all new residential development based on known costs to date. The additional
mitigation fees are expected to only cover the cost to expand school facilities to educate the
additional 305 students.
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NOTICE OF WRITTEN FINDINGS FOR OVERCROWDING
APRIL 17, 2015
TABLE 6: DEVELOPMENT MITIGATION SCHEDULE TO REDUCE OVERCROWDING
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HOUSING ELEMENT
Addition to Existing Single Family
tatutory Developer Fees: At the current
7FEESTRUCTURE
Residential over 500 sq. ft.
te mandated by Senate Bill 50 (e.g.,
rrently $2.29 per sq. ft. for the District
d does not include the high school
strict's portion).
New Single Family Residential Construction
1. Statutory Developer Fees: At the current
rate mandated by Senate Bill 50 (e.g.,
currently $2.29 per sq. ft. for the District
and does not include the high school
district's portion).
2. Additional Developer Mitigation: $9.57
per sq. ft.
New Multiple Family Residential
1. Statutory Developer Fees: At the current
Construction
rate mandated by Senate Bill 50 (e.g.,
currently $2.29 per square footage for the
District and does not include the high
school district's portion).
2. Additional Developer Mitigation: $9.57
per sq. ft.
New Commercial Construction
1. Statutory Developer Fees: At the current
rate mandated by Senate Bill 50 (e.g.,
currently $0.34 per sq. ft. for the District
and does not include the high school
district's portion).
171Page
M
LOS GATOS UNION SCHOOL DISTRICT
LOS GATOS, CALIFORNIA
RESOLUTION
#11 -14 -15
NOTICE OF FINDINGS FOR OVERCROWDING
FOR THE LOS GATOS UNION SCHOOL DISTRICT
WHEREAS, The enactment of the School Facilities Act - Government Code sections 65970 et
seq. permits a city or town to impose additional mitigation obligations on residential developers
to alleviate the impact of overcrowding in schools caused by new development.
WHEREAS, Government Code Section 65970 et seq. permits the Town, by ordinance, to require
the dedication of land, the payment of fees in lieu thereof, or a combination of both for classroom
and related facilities for elementary school as a condition to the approval of a residential
development.
WHEREAS, the Los Gatos Union District completed an analysis stated in Notice of Findings
for Overcrowding supported by clear and convincing evidence; and
WHEREAS, the Notice of Overcrowding Analysis provides that:
The District is experiencing classroom overcrowding within all grade levels of the
District and the school age populations within the community are continuing to
increase; and
2. The District, over the next five years, will need between 11 -20 additional classrooms
to house the currently anticipated enrollment increases; and
3. The District, over the next five years, will have facility costs of approximately $36 -
$44 million to expand school facilities need for overcrowding; and
4. The District will have an increased need for classrooms beyond that level if
residential development exceeds the projections; and
5. There is no surplus property owned by the District that can be used as a school site or
that is available for sale to finance school facilities; and
6. That the growth enumerated by new residential development cannot be
accommodated by excess capacity in existing facilities; and
7. The District cannot finance the construction of new facilities with resources now
available to the District.
NOW, THEREFORE, BE IT RESOLVED THAT:
Members of the Board of Trustees further finds that the District is experiencing classroom
overcrowding within all grade levels of the District and the school age populations within the
community are continuing to increase; and adopts the Notice of Findings for Overcrowding for
the Los Gatos Union School District.
PASSED AND ADOPTED by the Governing Board of the Los Gatos Union School District this
13`n day of April, 2015, by the following vote:
AYES: ETO, MARCELLIN, NOYMER, BROOMFIELD
NOES: NONE
ABSENT: POTTS
ABSTAIN: NONE
1, the undersigned, President of the Board of the Los Gatos Union School District, do hereby
certify the foregoing to be a true and correct copy of a resolution adopted by the Governing
Board of aforesaid School District at a regular meeting of the Board held on the 13`h day of
April, 2015.
Leigh -Anne Marcellin, Board President Date
Los Gatos Union School District
RESOLUTION NO
A RESOLUTION OF THE TOWN COUNCIL OF THE
TOWN OF LOS GATOS CONCURRING INFINDINGSOF
OVERCROWDING, MADE BY THEBOARD OF TRUSTEES
OF THE LOS GATOS UNION SCHOOL DISTRICT
AND SETTING THE MITIGATION FEE
WHEREAS, the Legislature of the State of California has enacted Government Code
Sections 65970 et seq., in order to provide a means to alleviate overcrowding in public schools
caused by new residential development; and
WHEREAS, that statute provides that whenever a school district finds schools will be
overcrowded as the result of proposed residential development, and the Town concurs, no further
residential development may be approved until an ordinance is adopted and implemented,
providing for the payment of fees or dedication of land by residential developers to the school
district; and
WHEREAS, the Board of Trustees of the Los Gatos Union School District (hereinafter the
"Board ") has made and presented to the Town Council of the Town of Los Gatos, a Resolution
attached hereto and incorporated as Exhibit "A" containing findings, supported by clear and
convincing evidence, that (a)conditions of overcrowding exist in the attendance area of the District
within the Town of L,os Gatos which will impair the normal functioning of educational programs
including the reasons for such conditions existing; and (b) that all reasonable methods of mitigating
conditions of overcrowding have been evaluated and no feasible method for reducing such
conditions that exist; and
WHEREAS, on September 15, 2015, the Town Council adopted Ordinance No. known
as the "Fee Dedication Fro Interim School Facilities Ordinance'; and
WHEREAS, Section 25.60.160 provides for the adoption of fees required to be paid by
developers; and
WHEREAS, the City Council of the Town of Los Gatos held a public hearing on
September 15, 2015 on the finding of overcrowding of the Board and the fee to be paid by
developers.
ATTACHMENT3
NOW, THEREFORE, the Council of the Town of Los Gatos does find and resolve as
follows :
SECTION 1:
This Council hereby concurs in the findings of the Board that (a) conditions of
overcrowding exist in the attendance area of the District within the Town of Los Gatos which
will impair the nor mal functioning of educational programs including the reasons for such
conditions existing; and (b) that all reasonable methods of mitigating conditions of overcrowding
have been evaluated and no feasible method for reducing such conditions exist.
SECTION 2:
[Additional findings to be added.]
SECTION 2:
This Council determines that fee shall be set at $9.57 per sq. ft. of residential development.
SECTION 3:
This resolution shall take effect 30 days from adoption.