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Desk Item\ I COUNCIL AGENDA REPORT DATE: SEPTEMBER 1, 2015 MEETING DATE: 09/01/15 ITEM NO: 5 DESK ITEM 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 REMARKS: After the agenda was published on August 27, 2015, staff received the attached communication. Attachments 1 -3 (Previously received with Staff Report on August 27 2015)• 1. Ordinance 2. LGUSD Letter and Findings 3. Draft Resolution Attachment 4 (Received with this Desk Item)• 4. Communication received from 11:00 a.m. Thursday, August 27, 2015 through 11:00 a.m. Tuesday, September 1, 2015. PREPARED BY: ROBERT SCHULTT� Town Attorney f r( 7 Reviewed by: LR Assistant Town Manager own Attorney Finance GROSVENOR, September 1, 2015 CO MMUNITI FS OF DISTINCI lW Town of Los Gatos Honorable Mayor Jensen and Council Members c/o Laurel Prevetti, Assistant Town Manager and Community Development Director 110 E. Main St. Los Gatos, California 95031 Honorable Mayor Jensen and Council Members: We understand that the Council has been asked by the Los Gatos Union School District (LGUSD) to adopt an ordinance imposing an additional fee for school facilities pursuant to Government Code Section 65970. We have had discussions with LGUSD for many years, and in April 2015 SummerHill Homes LLC and Grosvenor USA Limited reached a negotiated agreement with LGUSD. This voluntary contribution of land (or a substantial per -unit monetary payment) to the District is in addition to paying the required SB50 school fees. This agreement fully mitigates any impact caused to the District by our prospective North Forty development and in fact provides, from a per -unit basis, over 50% more than the proposed fee you will hear tonight. Therefore, it is our understanding that if approved, any conditions or exactions imposed by this new Town ordinance would not apply to our development in the North Forty Plan Area. If the Town's legal understanding differs from that stated in this letter, please advise. immediately. Sincerely, A. Don Capobres Senior Vice President Grosvenor Wendi Baker Vice President of Development SummerHill Homes ATTACHMENT