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HomeMy WebLinkAboutMINUTES - 12111984 - 2.6A TO: BOARD OF SUPERVISORS ('`�} FROM: Phil Batchelor, Contra County Administrator Costa .DATE: December 10, 1984 County SUBJECT: Interim School Facilities Fees for Oakley and Liberty Districts SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1 . Retain the existing Interim School Facilities Fee of $700 per bedroom (not to exceed $2, 100 per dwelling unit ) for the unincor- porated area of the County contained within the Oakley, Brentwood, Knightsen, and Byron Union Elementary School Districts and the Liberty Union High School District , as established by Resolution No . 84/623 with the understanding that the fee will be reviewed in the fall of 1985 to determine if a fee modification is warranted by circumstances at that time . 2. Encourage the Oakley and Liberty districts to finalize negotiations on revision of the current fee split of Oakley - 55% , Liberty - 45% to a fee split of Oakley - 2/3, Liberty - 1/3. 3. Authorize the County Administrator to negotiate and submit to the Board a proposed addendum to the recently approved consulting services agreement (with Ralph Andersen & Associates ) for develop- ment of an Oakley Infrastructure Financing Plan to include development of recommendations on strategies for financing road construction and maintenance costs within the study area . 4 . Request the County Administrator , in coordination with the County Superintendent of Schools and appropriate County departments , to continue review of concerns expressed by the Building Industry Association with regard to the continued need for and proposed use of interim school facilities fees and interest earned on such funds . 5 . Direct the Director of Planning to finalize formation of the Oakley infrastructure study oversight committee immediately . BACKGROUND On October 9 , 1984 your Board adopted Resolution No . 84/623 which increased the Interim School Facilities Fee from $427 to $700 for the above school districts , effective November 9, 1984. The resolution provided further that the County Administrator and County Counsel were to review the current Interim School Facilities Fee account balances of the Liberty and Oakley School Districts , and the districts' past and proposed use of said funds . CONTINU ON ATTACHMENT: YES SIGNATURE: MENDATION OF COUNTY ADMINISTRATOR RECOMMEN AT10 F BOARD COMMITTEE I 'APPROVE OTHER I II SIGNATURE(S) '9 3 a t K Since adoption of the aforementioned resolution , several meetings have been held between representatives of the County Administrator , Planning Department , County Counsel , County Superintendent of Schools , the Oakley and Liberty School Districts , the Building Industry Association , and and private developers . Originally, a fee increase to the current $700 level was based on an analysis prepared by the County Planning Department . Staff of the County Administrator' s Office have reviewed that analysis and discussed it extensively with all other parties involved . The $700 fee level is justified based on the cost to provide satisfactory interim classroom facilities . School district represen- tatives are still of the opinion that the fee should be even higher based on recent bids received by them for the provision of temporary classroom facilities . County staff , however , is of the opinion that the $700 fee should remain in place and be reviewed in one year to determine if circumstances at that time warrant a modification in the fee level . Liberty Union High School District Accumulated Balance The issue which has generated much concern is the fact that the Liberty Union High School District has accumulated a large balance of Interim School Facilities Fee funds . The fund balance as of July 1 , 1984 was $733,606. Staff efforts have been directed toward determining whether , in light of this large fund balance , there is justification for the Liberty Union High School District to continue to receive Interim School Facilities Fee funds . The purpose of the Interim School Facilities Fee is to provide school districts with funds required to meet the immediate need for additional classroom facilities caused by new residential development . Theoreti- cally, the revenue received from such fee is to finance the school district ' s use of temporary school facilities until such time as perma- nent school facilities can be provided . Analysis by the County Planning Department (contained in the East County Educational Facilities Element of the County General Plan ) indicates that twice as many new elementary school students are being generated by new residen- tial development in the East County area than are high school students . This is accounted for by the fact that most of the new homes in the area are being purchased by persons having young children. This is reflective of the fact that a lot of the homes are being purchased by "first time" home buyers . Thus , the most immediate impact is on the elementary school districts . In subsequent years , the high school district will receive the increased student population as the elemen- tary students move into the high school grades . This explains , at least in part , why the Liberty Union High School District has , up to this point , accumulated a significant balance of Interim School Facilities Fee funds . Liberty has taken prudent steps during the last few years and plans additional prudent actions in the near future to utilize its existing facilities to the maximum possible in order to accommodate additional students and to avoid the need to expend funds for temporary school facilities . The school district has developed a master school facilities plan which is being used as a guide for deve- lopment of its school facilities and to assure that school funds , including the Interim School Facilities Fee funds , are utilized in the most beneficial manner . For these reasons , the district has not been spending the Interim School Facilities Fee funds as rapidly as they have been collected . However , the district is now at the point where the accumulated balance is planned to be expended to meet school faci- lity requirements . For the school year beginning September , 1985 the Liberty Union High School District expects to obtain additional temporary classroom faci- lities at a total cost of about $500,000 to $700,000. These temporary facilities will include two science classrooms , one restroom building, and two to four regular classrooms . The total cost of these facilities reflects a five year lease/purchase agreement . Although the total cost will be spread over a five year period , it is necessary that fees be collected now in order to meet the full five year financial obligation . 2 For this reason, the district will carry forward a sizable balance of fee revenue . In addition , the district plans to utililze some Interim School Facilities Fee funds as the required local 10% match in order to obtain a permanent science building (to include four permanent classrooms ) and the rehabilitation/reconstruction of eight school buildings . The district plans to utilize approximately $200,000 of temporary school facilities fee funds for the purpose . The use of such funds in this manner is authorized by Government Code Section 65975 , which became effective January 1 , 1984 . This planned use of Interim School Facilities Fee funds has been reviewed and found acceptable by County Counsel (see attached County Counsel letter) . It should be noted that the use of Interim School Facilities Fee funds in this manner will allow the school district to obtain permanent classrooms at a minimum local cost . In addition , the district plans to use $300,000 of these funds for the purchase of land for placement of temporary school facilities . The use of such funds for this purpose may be allowed under certain circumstances (see attached Legislative Counsel opinion) . Oakley District Analysis of the projected school enrollment for the Oakley Elementary School District indicates that this district has a more immediate need for additional classroom facilities than does the Liberty Union High School District . The district ' s current balance of Interim School Facilities Fee funds is not adequate to meet its current financial commitments for temporary classrooms . In recognition of this , County staff encouraged the two school district governing boards to negotiate a split of the current $700 fee which would be more equitable in light of each district ' s current need for such funds . Currently the $700 fee is split 55% to Oakley and 45% to Liberty. We have been informed by representatives of the two districts that the district governing boards have informally agreed to revise the split to 2/3 for Oakley and 1/3 for Liberty for a one year period . At the end of the year , the districts would review the situation at that time to determine if a change in the formula would be warranted at that time . County staff is of the opinion that this proposed fee split arrangement reflects the current need of both districts and is encouraged by the willingness of the two districts to negotiate this matter . Conclusion In light of the projected needs for additional school facilities within the Oakley and Liberty school districts , the State legislative amend- ment allowing interim school facilities fees to be used toward the cost of permanent facilities and the proposed modification in the sharing of the fee between the two districts , it is county staff' s opinion that the current $700 fee level should continue in effect and be reviewed in the fall of 1985 to determine the situation as it exists in each district at that time and whether any modification in the fee should be made . In the interim , County Planning Department staff will be requested to update its projections on student enrollment for both districts , projected residential development within the East County area , the student generation rate and the cost of providing interim school facilities . Oakley Infrastructure Financing On October 30, 1984 your Board authorized the County Administrator to execute a contract between the County and Ralph Andersen & Associates for preparation of an Infrastructure Financing Plan for the Oakley area . The contract , in the amount of $25,000 , has been executed by both parties and the contractor has been instructed to initiate the study immediately. The scope of the study includes reivew and recom- mendation on financing strategies for school , park and fire facilities . 3 The Director of Planning and Public Works Director are preparing a report and analysis on the proposed establishment of an area of benefit for the Oakley area . Such area of benefit would provide the vehicle for the county to levy and collect a fee on new development for the purpose of financing needed road improvements . That report is sche- duled for public hearing on January 22, 1985 . In addition , staff of my office have discussed with Ralph Andersen & Associates the possibility of expanding the scope of work of the original consulting services agreement to include review of and recommendation on strategies for financing road construction and maintenance costs within the study area . As soon as we receive the consultant' s estimated cost of this addi- tional work , it will be furnished to your Board . Engineering consulant services may eventually be required , especially if formation of an assessment district is proposed . However , the information to be received from the expanded Ralph Andersen & Associates study will pro- vide an overall view of financial requirements for implementation of total infrastructure improvements . 4