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Staff ReportApW N OF !ps 6ASpS DATE: TO: FROM: MEETING DATE: 10/06/2015 ITEM NO: '- COUNCIL AGENDA REPORT September 29, 2015 MAYOR AND TOWN COUNCIL ROBERT SCHULTZ, TOWN ATTORNEY SUBJECT: ADOPTION OF A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS SUPPORTING THE BOARD OF TRUSTEES OF THE LOS GATOS UNION SCHOOL DISTRICT EFFORTS TO RELIEVE OVERCROWDING IN ITS SCHOOLS ADOPTION OF A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DENYING THE BOARD OF TRUSTEES OF THE LOS GATOS UNION SCHOOL REQUEST TO SET AN INTERIM SCHOOL FACILITIES FEE RECOMMENDATION: Staff recommends Town Council adopt a Resolution supporting the School District's efforts to relieve overcrowding in its schools and also adopt a Resolution denying the School District's request to set an Interim School Facilities Fee. BACKGROUND: On April 17, 2015 the Town received from the Los Gatos Union School District a Notice of Findings of Overcrowding and arequest pursuant to Government Code Section 65970 et seq., (SB 201) for the Town of Los Gatos to enact an Ordinance for additional development fees and establish a fee of $9.57 per sq. ft. At the September 1, 2015 Town Council meeting, the Council approved the introduction and first reading of an Ordinance adding section 25.60 to the Town Code related to Interim School Facilities Fees. However, the Town Council raised several legal issues, including but not limited to, the preemption and applicability of SB 50, the maximum allowed school fee that can be assessed, and the use of interim fees for the purchase of land. PREPARED BY: Robert Schultz, Town Attorney Reviewed by: J_ fj Town Manager Town Manager n 101 Finance PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: Ordinance re fees for overcrowding of schools September 29, 2015 At the September 15, 2015 Town Council meeting, the Council denied the adoption of an Ordinance adding section 25.60 to the Town Code related to Interim School Facilities Fees and directed Staff to work with the School District on a new ordinance that complies with the legal mandates of both the 1977 Act and S1350. Also at the September 15, 2015 Town Council meeting, the Council directed Staff to bifurcate the resolution into two separate resolutions. One Resolution would contain the language in sections 1 -6, and one resolution contain the language in sections 7 -12, and would also include the changes suggested by the Town Attorney, and return to Council for final approval on October 6, 2015. DISCUSSION: Pursuant to Council direction, attached are two separate Resolutions. The first resolution is supporting the School District's efforts to relieve overcrowding in its schools. The second Resolution is denying the School District's request to set an Interim School Facilities Fee. Both Resolutions contain language that the Town Council's support to relieve overcrowding shall not be deemed to concur with the School District Findings of overcrowding. This language is very important to make certain that the Resolutions are not interpreted to be a concurrence with the School District Findings pursuant to Government Code Section 65971- 65972. Such an interpretation could mean that Town could not approve any permit for residential use unless the Town made specific overriding fiscal, economic, social, or environmental findings which justify the approval of a residential development. The addition of these Sections in both Resolutions makes certain that the Town will not need to make the overriding findings, but still supports the School District efforts to relieve overcrowding in its schools. CONCLUSION: Staff recommends Town Council adopt a Resolution supporting the School District's efforts to relieve overcrowding in its schools and also adopt a Resolution denying the School District's request to set an Interim School Facilities Fee. 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. Attachments: 1. Resolution Supporting the School District's efforts to relieve overcrowding 2. Resolution denying School Interim Facilities Fee RESOLUTION NO A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS SUPPORTING THE BOARD OF TRUSTEES OF THE LOS GATOS UNION SCHOOL DISTRICT EFFORTS TO RELIEVE OVERCROWDING IN ITS SCHOOLS WHEREAS, the Legislature of the State of California enacted Government Code Sections 65970 -65981 in 1977 (S13 201), in order to provide a means to alleviate overcrowding in public schools caused by new residential development; and WHEREAS, the Legislature of the State of California enacted Government Code Sections 65995 -65996 in 1986 and amended thru SB 50, provides that the payment or fees imposed in the amount specified in Section 65995 are deemed to be full and complete mitigation of the impacts on adequate school facilities; and WHEREAS, the Los Gatos Union School District (hereinafter the "School District ") has made and presented to the Town Council of the Town of Los Gatos, a Resolution containing findings that conditions of overcrowding exist in the attendance area of the School District within the Town of Los Gatos; and WHEREAS, the Town Council of the Town of Los Gatos held public hearings on September 1 and September 15, 2015 on the finding of overcrowding of the School District. NOW, THEREFORE, the Town Council of the Town of Los Gatos does find and resolve as follows: SECTION 1: The School District provides a high quality public school education to students who live in the Town of Los Gatos and quality schools are a critical resource for local communities and employers. SECTION 2: Improvements to school facilities are needed in the School District in order to provide the students with adequate, proper, and safe educational facilities. SECTION 3: The School District asserts that it is experiencing an increase in enrollment that has led to overcrowding at schools and enrollment projections call for continued increases in enrollment, resulting in more overcrowding. 1 ATTACHMENT 1 SECTION 4: The Town Council of the Town of Los Gatos strongly supports the School District's efforts to relieve overcrowding and make improvements to school facilities and relies upon the School District in its expertise, methodology and determination of overcrowding in schools. SECTION 5: The Town Council of the Town of Los Gatos strongly encourages developers to collaborate with the School District to address school needs and work closely with the School District's to project enrollment growth and address overcrowding by assisting with identifying strategies for providing needed school facilities and associated sources of funding. SECTION 6: The Town Council of the Town of Los Gatos shall work with the School District to seek additional mitigation from developers to prevent further overcrowding. In implementing this provision, the Town of Los Gatos shall comply with the provisions of SB 50. SECTION 7: The support of the Town Council of the Town of Los Gatos to the School District's efforts to relieve overcrowding shall not be deemed to concur with the School District Findings pursuant to Government Code Section 65971- 65972. PASSED AND ADOPTED by the Town Council, Town of Los Gatos at a regular meeting thereof held on the 6`" day of October 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Marcia Jensen, Mayor Shelley Neis, Clerk Administrator PAI RESOLUTION NO A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DENYING THE BOARD OF TRUSTEES OF THE LOS GATOS UNION SCHOOL REQUEST TO SET AN INTERIM SCHOOL FACILITIES FEE WHEREAS, the Legislature of the State of California enacted Government Code Sections 65970 -65981 in 1977 (SB 201), in order to provide a means to alleviate overcrowding in public schools caused by new residential development; and WHEREAS, the Legislature of the State of California enacted Government Code Sections 65995 -65996 in 1986 and amended thm SB 50, provides that the payment or fees imposed in the amount specified in Section 65995 are deemed to be full and complete mitigation of the impacts on adequate school facilities; and WHEREAS, the Los Gatos Union School District (hereinafter the "School District ") has made and presented to the Town Council of the Town of Los Gatos, a Resolution containing findings that conditions of overcrowding exist in the attendance area of the School District within the Town of Los Gatos which will impair the normal functioning of educational programs including the reasons for such conditions existing and requesting the Town of Los Gatos to enact an Interim School Facilities Fee of $9.57; and WHEREAS, the Town Council of the Town of Los Gatos held public hearings on September 1 and September 15, 2015 on the finding of overcrowding of the School District and the request to enact an Interim School Facilities Fee of $9.57 per sq. ft. NOW, THEREFORE, the Town Council of the Town of Los Gatos does find and resolve as follows: SECTION 1: SB 50 created a comprehensive school facilities financing and mitigation regime. The effect of these SB 50 provisions is to limit the school fees that can be charged to new development and to remove the ability of the Town of Los Gatos to make land use decisions based on the inadequacy of school facilities or school overcrowding. Therefore, the Town Council of the Town of Los Gatos denies the School District request to set an Interim School Facilities Fee at $ 9.57 per sq. ft. SECTION 2: I ATTACHMENT SB 50 expressly provides that the amount of any fees, charges, dedications, or other requirements authorized under SB 201 may not exceed the Level I, II, and III maximum fee amounts and the School District request to set an Interim School Facilities Fee at $9.57 per sq. fi. is over the maximum fee allowed. Therefore, the Town Council of the Town of Los Gatos denies the School District request to set an Interim School Facilities Fee at $ 9.57 per sq. ft. SECTION 3: SB 201 is limited to funding temporary /interim school facilities and the School District's findings fail to limit the requested fee expenditures to the authorized interim school facilities. Therefore, the Town Council of the Town of Los Gatos denies the School District request to set an Interim School Facilities Fee at $ 9.57 per sq. ft. SECTION 4: The Town Council of the Town of Los Gatos cannot make the findings required under SB 201 that the specified land and interim facilities are consistent with the jurisdiction's General Plan since the School District has failed to identify the interim facilities with sufficient specificity. Therefore, the Town Council of the Town of Los Gatos denies the School District request to set an Interim School Facilities Fee at S 9.57 per sq. ft. SECTION 5: SB 201 establishes that the value of the land to be dedicated or the amount of fees to be paid shall not exceed the amount necessary to pay five annual lease payments for the interim facilities. There is no evidence that the proposed fee of $9.57 per sq. ft. is limited to the amount necessary to pay five annual lease payments for interim facilities. Therefore, the Town Council of the Town of Los Gatos denies the School District request to set an Interim School Facilities Fee at $ 9.57 per sq. ft. SECTION 6: The Town Council of the Town of Los Gatos cannot make the findings pursuant to Government Code Section 65971 -65972 that all reasonable methods of mitigating conditions of overcrowding have been evaluated and the School District has failed to comply with SB 50 and SB 201 as set forth above. PASSED AND ADOPTED by the Town Council, Town of Los Gatos at a regular meeting thereof held on the 6`h day of October 2015 by the following vote: 2 AYES: NOES: ABSENT: ABSTAIN: Marcia Jensen, Mayor ATTEST: Shelley Neis, Clerk Administrator