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Attachment 1ORDINANCE 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 I 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 builders 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 15a` 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