AGENDA
ITEM
2 CITY COUNCIL
CALEXICO
AGENDA STAFF REPORT
DATE: October 12, 2022
TO: Mayor and City Council
APPROVED BY: Esperanza Colio-Warren, City Manager
PREPARED BY: Lisa Tylenda, Planning and Building Services Director SUBJECT: Letter to the Calexico Unified School District Objecting the Adoption of the School Facility Needs Analysis Study of 2022 Increasing User Fees. ===
Background:
State law gives school districts the authority to charge fees on new residential developments if those developments generate additional students and cause a need for additional school facilities. All districts with a demonstrated need may collect fees pursuant to Education Code Section 17620 and Government Code Section 65995 (referred to as Level I fees). Level I fees are currently capped at $4.79 per square foot of new residential development. Government Code Sections 65995.5 and 65995.7 authorize districts to collect fees (referred to as Level I| and Level Ill fees) in excess of Level I fees, provided that the districts meet certain conditions.
Government Code Section 66001 requires that a reasonable relationship exist between the amount and use of developer fees and the developments on which they are to be charged.
Discussion and Analysis
The State of California is experiencing a housing crisis and the City of Calexico is as well.
Increasing the user fees with the projected housing numbers will not create a hardship on big time developments but it will create an impact on middle- and lower-income families, which based on the city's current population trend and planned developments are mostly from accessory dwelling units. Adopting an increase to these fees would directly affect everyday families within the City of Calexico and have a direct impact on future growth on the city.
Fiscal Impact:
Potential Impact to the local Economy and Potential Impacts to Local AGENDA Developments ITEM
Coordinated With:
2 Planning and Building Services Department.
Attachment(s):
1. Draft Letter
2. School Facility Needs Analysis and Justification Study. 608 Heber Avenue
Calexico, CA 92231
www.calexico.ca.gov
CITY OF CALEXICO 760-768-2105
CALEXICO DEVELOPMENT SERVICES DEPARTMENT
Nex Caffizon Cord Mario Th Planning, Building, Engineering, & Code Enforcement City of Calexico
City Council
608 Heber Avenue
Calexico, CA 92231
RE: Objection to Developer Fee Study for Calexico Unified School District 2022 Dear Calexico School District Board Members,
The City Council of Calexico respectfully requests that the Board take no action to implement the developer fees as recommended pursuant to the School Facility Needs Analysis Study and to instead issue an alternative study or pursue an alternative course of action that takes the points raised herein into account.
City Staff met with Calexico Unified School District Staff members on September 20, 2022 and were informed that the effort and purpose of the increase was to allow the District to qualify for financial hardship grant funds for various California Facilities Grant Programs.
However, the applicable regulation requires only that the District certify that is has "made all reasonable efforts to fund its matching share of the project by demonstrating it is levying the developer fee justified under law or an alternative revenue source equal to or greater than the developer fee otherwise justified under law." (2 CCR Section 1860.14(a).) Within the School Facility Needs Analysis Report under section "III. Findings and Recommendations (6) Other Funding Sources", the District has the ability seek alternate funding avenues. Increasing the user fees with the projected housing numbers will not create a hardship on big time developments but it will create an impact on middle and lower income families, which based on the city's current population trend and planned developments are Viva Calerico!
608 Heber Avenue
Calexico, CA 92231
www.calexico.ca.gov
CITY OF CALEXICO 760-768-2105
CALEXICO DEVELOPMENT SERVICES DEPARTMENT
Planning, Building, Engineering, & Code Enforcement
mostly from accessory dwelling units. Adopting and increase to these fees would directly affect everyday families within the City of Calexico and also have a direct impact on future growth on the city. It is our understanding that the District intends to take action at its October 13, 2022 Board meeting to approve the Study and commence imposing fees on developers within the District's boundaries. We strongly urge the District Board not to take this action as the Study and we invite the District to Collaborate with the City of Calexico to identify alternative ways for the District to qualify for financial hardship grant funds in order for the Community and Education of Calexico to prosper.
Mayor, Javier Moreno Date
City of Calexico
760-768-2102
Viva Calexico!
SCHOOL FACILITY NEEDS ANALYSIS AND
JUSTIFICATION STUDY
for the
CALEXICO UNIFIED SCHOOL DISTRICT
October 2022
Prepared by
School Facility Consultants
DRAFT
SCHOOL FACILITY NEEDS ANALYSIS AND
JUSTIFICATION STUDY
for the
CALEXICO UNIFIED SCHOOL DISTRICT
October 2022
Prepared for
Calexico Unified School District
901 Andrade Avenue
Calexico, CA 92231
(760) 768-3888
Prepared by
School Facility Consultants
1303 J Street, Suite 500
Sacramento, CA 95814
(916) 441-5063
DRAFT
Table of Contents
Executive Summary.. ...1
Introduction.. .2
I. Authority to Collect Level Il and Level Ill Fees. 3
A. Eligibility for State Funding for New Construction.... 3 B. Adoption of School Facility Needs Analysis and Justification Study 3 C. Criteria in Government Code Section 65995.5(b)(3)(A-D).... .3 II. Amount of Level Il and Level III Fees .. .4
A. Allowable Cost for New School Facilities. .4
(1) Number of Unhoused Students ...4
(2) Allowable Grant Costs.... ...6
(3) Allowable Site Acquisition and Development Costs. ...7 (4) Local Funds Dedicated to School Facilities Necessitated by Future Development. ...8 (5) Total Allowable School Facility Cost for Level II Fees ...9 B. Amount of Level II Fee... 10
C. Amount of Level III Fee.. 10
Ill. Findings and Recommendations. 11
A. Findings...
(1) Government Code Section 66001(a)(1) - Purpose of the Fee (2) Government Code Section 66001(a)(2) - Use of the Fee.. (3) Government Code Section 66001(a)(3) - Relationship Between Fee's Use and the Type of Project on Which the Fee is Imposed 11
(4) Government Code Section 66001(a)(4) - Relationship Between the Need for the Public Facility and the Type of Project on Which the Fee is Imposed... 12 (5) Government Code Section 66001(b) - Relationship Between the Fee and the Cost of the Public Facility Attributable to the Development on Which the Fee is Imposed .12
(6) Other Funding Sources.. .12
a) General Fund.. .12
b) State Programs 12
c) General Obligation Bonds 12
d) Parcel Taxes. .13
e) Mello-Roos Community Facilities Districts... .13
f) Surplus Property............. .13
g) Alternatives for Reducing Facility Costs.. .13
B. Recommendations. ..13
Appendix A. Calculation of Allowable Per-Pupil Grant Costs Appendix B. Calculation of Allowable Per-Pupil Site Acquisition Costs Appendix C. Calculation of Allowable Per-Pupil Site Development Costs DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report Executive Summary
The Calexico Unified School District is authorized to collect $10.76 per square foot of residential development pursuant to Government Code Section 65995.5 and $21.52 per square foot of residential development pursuant to Government Code Section 65995.7 (also known as Level II and Ill fees, respectively).
The District meets the eligibility requirements in Government Code Section 65995.5(b) regarding the collection of Level II and III fees. The dollar amounts of the fees are based on the following facts and projections:
1. The student generation rate of residential housing units projected to be built in the District, calculated in accordance with Government Code Section 65995.6(a), is 0.512 for single- family units and 0.957 for multi-family units.
2. The number of new residential housing units projected to be built in the District over the next five years is 10 single-family and 235 multi-family units based on housing projection information provided by the District.
3. Multiplying the appropriate terms in (1) and (2) shows that future single- and multi-family residential development is projected to add 129 K-6 students, 34 7-8 students and 67 9-12
4. The District has zero excess pupil capacity at the 7-8 and 9-12 grade levels available for pupils generated by future unmitigated residential development. The District's capacity as calculated on its SAB 50-02, Existing School Building Capacity form, and pupil capacity added by the District's Cesar Chavez Elementary, Rockwood Elementary and Calexico High School projects. At the K-6 grade level, the District has 618 seats available for students generated by future residential development.
5. The total number of unhoused pupils generated by future development equals zero K-6 students, 34 7-8 students and 67 9-12 students from future single-family and multi-family residential development.
6. The per-pupil allowable costs for the Level Il fee equation equal $20,122.50, $22,198.50 and $22,081.00 for elementary, middle and high school students, respectively. These figures are equal to the per-pupil grant amounts in the State School Facility Program plus allowable per- pupil site development and site acquisition costs calculated pursuant to Government Code Section 65995.5(c) and 65995.5(h). Per-pupil allowable costs for the Level III fee equation would be double those of the Level Il fee equation.
7. Total allowable costs for the Level II fee equation equal $2,234,176 (K-6, 7-8 and 9-12 unhoused students generated by future development times the appropriate allowable per-pupil cost). The total allowable costs fro the Level III fee equation are double those of the Level II fee equation.
8. The total amount of residential square footage projected to be built in the District over the next five years is 207,700 square feet, based on an average square footage of 1,312 square feet for the 10 single-family units and 828 square feet for the 235 multi-family units subject to Level Il and Level III fees.
9. The District has no local funds available to dedicate to school facilities necessitated by future residential development.
As shown in the body of this Report, the District meets the requirements of Government Code Section 66001 regarding the collection of developer fees (the nexus requirements).
End of Summary
DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report Introduction
The purpose of this Report is to calculate the fee amount that the Calexico Unified School District (District) is authorized to collect on residential development projects pursuant to Government Code Sections 65995.5 and 65995.7. School Facility Consultants has been retained by the District to conduct the analysis and prepare this Report.
State law gives school districts the authority to charge fees on new residential developments if those developments generate additional students and cause a need for additional school facilities. All districts with a demonstrated need may collect fees pursuant to Education Code Section 17620 and Government Code Section 65995 (referred to as Level I fees). Level I fees are currently capped at $4.79 per square foot of new residential development.
Government Code Sections 65995.5 and 65995.7 authorize districts to collect fees (referred to as Level Il and Level III fees) in excess of Level I fees, provided that the districts meet certain conditions. Government Code Section 66001 requires that a reasonable relationship exist between the amount and use of developer fees and the developments on which they are to be charged.
This Report is divided into three sections. The first summarizes the specific requirements in State law regarding Level II and Level III fees and establishes the District's authority to collect them. The second calculates the dollar amounts of Level Il and Level III fees that the District is authorized to collect. The third explains how the District satisfies the requirements of Government Code Section 66001 with respect to Level Il and III fees, summarizes other potential funding sources for school facilities and presents recommendations regarding the collection of developer fees.
End of Section
2 DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report I. Authority to Collect Level Il and Level III Fees
State law establishes several requirements in order for school districts to collect Level II fees.
Specifically, districts must: (1) apply to the State Allocation Board and be deemed eligible for State funding for new school construction, (2) adopt a school facility needs analysis and justification study and (3) satisfy at least two of the four criteria set forth in Government Code Section 65995.5(b)(3)(A-D).
The general conditions required for collecting Level III fees are the same as those for Level II fees. Before districts can collect Level III fees, however, the State Allocation Board must no longer be approving apportionments for new construction pursuant to Article 5 (commencing with Section 17072.20) of Chapter 12.5 of Part 10 of the Education Code, which it did on May 25, 2016 and confirmed to the legislature on November 1, 2016...
The District satisfies the three conditions listed above in the following ways.
A. Eligibility for State Funding for New Construction
The District has been deemed eligible to receive State funding for construction of new school facilities as outlined in Government Code Section 65995.5(b)(1). The District's most recent eligibility approval was at the June 22, 2011 meeting of the State Allocation Board.
B. Adoption of School Facility Needs Analysis and Justification Study This Report meets the requirements of Government Code Section 65995.6 for a School Facility Needs Analysis and Justification Study, that is, a study that shall "determine the need for new school facilities for unhoused pupils that are attributable to projected enrollment growth from the development of new residential units over the next five years." By adopting this study, the District will satisfy this requirement.
C. Criteria in Government Code Section 65995.5(b)(3)(A-D) The District meets the criterion outlined in 65995.5(b)(3)(C) in that it has issued debt for capital outlay in excess of 30% of bonding capacity.
The District also meets the criterion outlined in 65995.5(b)(3)(D); that is, that at least 20 percent of the District's classrooms are relocatable. According to the District's current Office of Public School Construction Form SAB 50-02, 48.1 percent (203 out of 422) of the total classrooms in the District are relocatable. The District has also added capacity through the construction of (1) Cesar Chavez Elementary (1,000 K-6 seats), (2) Rockwood Elementary (200 K-6 seats) and (3) additions to Calexico High School (486 9- 12 seats). Including these projects in the District capacity indicates that 41.6 percent (203 out of 488) of the total classrooms in the District are relocatable.
End of Section
3 DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report I. Amount of Level II and Level III Fees
State law outlines the method by which Level II fees are calculated. The intent of the law is that the Level II fee represents half the cost, as defined in the State School Facility Program, of providing new school facilities. The methods defined in State law for calculating the Level Il fee, however, underestimate the District's true cost of providing school facilities.
Additional sources of revenue are necessary to fully fund the facilities that are required as a result of new development and the generation of students from such development activity within the District.
The Level II fee is calculated by (1) determining the allowable cost for new school facilities as outlined in the State School Facility Program, and (2) dividing that cost by the amount of new residential square footage projected to be built in the District over the next five years.
A. Allowable Cost for New School Facilities
State law prescribes the following process for calculating the allowable cost for new school facilities:
(1) determine the number of unhoused students attributable to future residential development;
(2) multiply the number of unhoused students by the per-pupil grant costs of new elementary, middle, or high schools as outlined in Education Code Section 17072.10;
(3) determine the amount of site acquisition and development costs to be included as allowed by Government Code Section 65995.5(h); and
(4) subtract the amount of local funds dedicated to school facilities necessitated by future residential development from the sum of (2) and (3). 1) Number of Unhoused Students
The number of unhoused students generated by future development equals the total number of students generated by future development minus the District's existing excess pupil capacity.
As required by Government Code Section 65995.6(a), this Report estimates the number of students generated by new development based on the historical student generation rates of residential units constructed during the previous five years.
This Report estimates the number of students that will be generated by new single- family housing units by (1) counting the number of students in the District who live in housing units constructed between July 2016 and June 2021, and (2) dividing that number by the total number of housing units constructed over the same time period.
This Report uses District developer fee collection records to derive the housing counts and a July 2022 District-provided student list to derive the student counts. 4 DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report Addresses for units that were constructed from June 2021 to the present date are not used in the calculation because (1) student address files may not reflect residents' address changes for approximately one year, (2) students who have moved from a nearby district may continue to attend their previous school until the end of the school year and (3) units listed may not have been completed and occupied by the time the student address list was compiled.
It is noted that student generation rates are a calculation of students per residential unit at any one moment in time. Therefore, student generation rates are constantly changing based on increases and decreases in enrolled students, the number of current and planned residential units within the District at the time of calculation. As such, the District should be cautious in regard to using student generation rates for long- term planning and development and should adjust such planning and development based on updated student generation rates that are more in line with the current conditions at the time of evaluation.
Table 1-1 summarizes the student generation rates for single- and multi-family units.
Table 1-1
Student Generation Rates
Grade Group Single-Family Multi-Family
K-6 0.233 0.540
7-8 0.070 0.141
9-12 0.209 0.276
Total 0.512 0.957
Information provided by the District in accordance with the City of Calexico and the 23 my or amily in sail go lei in the strict et that 10 es ive gray unis and Table 1-2 shows the total number of students projected to enter the District from housing units built over the next five years.
Table 1-2
Students Generated by Future Single-Family Development
K-6 Students 7-8 Students 9-12 Students
Single-Family 0.233 x 10=2 0.070 × 10 = 1 0.209 × 10 = 2 Multi-Family 0.540 x 235 = 127 0.141 x 235 = 33 0.276 × 235 = 65 Total
5 DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report In determining how many of the students in Table 1-2 are unhoused, the District must consider any existing excess capacity. State law requires districts to calculate their total pupil capacity according to the method described in Section 17071.10 of the Education Code. As stated on the District's current Office of Public School Construction SAB 50-02 Form, the District's pupil capacity, as calculated pursuant to Education Code Section 17071.10 is 3,574 in grades K-6, 1,202 in grades 7-8 and 2,242 in grades 9-12. These capacities are inclusive of the Special Day Class capacity identified on the District's Office of Public School Construction SAB 50-02 Form and reflect requirements and adjustments for Year Round Education operational grants in accordance with Education Code Section 42268 and State Relocatable Classrooms. In addition to the capacity reflected on the District's SAB 50-02 Form, the District has added capacity through the State School Facility Program funding and construction of (1) Cesar Chavez Elementary (1,000 K-6 seats), (2) Rockwood Elementary (200 K-6 seats) and (3) additions to Calexico High School (486 9-12 seats).
residential development (see Table 1-2, above).
As shown in Table 1-3, the District's 2021/22 enrollment is greater than the capacities listed above for the 7-8 and 9-12 grade groups. The District, therefore, has no existing excess capacity available for students from new residential development in the 7-8 Table 1-3
Existing Capacity
Existing Capacity Unhoused
Grade Current 2021/22 Available for Students
Group Capacity Enrollment Students from From Future
Future Development Development
K-6 4,774 4,156 618
7-8 1,202 1,271 34
9-12 2,728 3,136 0 67
Total 8,704 8,563 618 101
2) Allowable Grant Costs
6 DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report Table 1-4
Allowable Grant Costs for Pupils Generated from
Future Residential Development
Grade Per-Pupil Grant Number of
Group Cost Unhoused Total Grant Cost
Students
K-6 $15,230.00 0 $0.00
7-8 $15,906.00 34 $540,804.00
9-12 $20,034.00 67 $1,342,278.00
Total N/A 101 $1,883,082.00
The per-pupil grant does not include the cost of school development items that the local community may deem important to meeting the quality of facilities in the District. Because the per-pupil grants do not address certain costs, the actual funding will not be adequate to fund school facilities to the quality and level required by the District. Therefore, the final calculation of Level Il fees understates the funding required by the District.
3) Allowable Site Acquisition and Development Costs
Table 1-5 shows the per-pupil site acquisition and development costs for elementary middle and high school students.
Site acquisition costs for the District's elementary, middle and high school cost models are based on (1) actual and estimated land acquisition cost provided by District administrators and (2) applicable increases pursuant to Section 1859.74 of Title 2 of the California Code of Regulations for appraisals, surveys, site testing, California Department of Education (CDE) review/approval, preparation of the POESA and PEA and the DTSC cost for review, approval, and oversight of the POESA and the PEA. Site development costs for elementary, middle and high school cost models are consistent with the guidelines in Government Code Section 65995.5(h). See Appendix B and Appendix C for detail on estimated site acquisition and site development costs.
Table 1-5
Calculation of Per-Pupil Site Acquisition and Development Costs Grade Per-Pupil Site Per-Pupil Site Total Per-Pupil
Group Acquisition Costs Development Costs Acquisition and Development Costs
K-6 $1,000 $8,785 $9,785
7-8 $1,111 $11,474 $12,585
9-12 $0 $4,094 $4,094
DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report Pursuant to Government Code Sections 65995.5(c) and 65995.5(h), the allowable cost elementary, middle and high school students. Table 1-6 shows the total allowable site acquisition and development costs.
Table 1-6
Allowable Site Acquisition and Development Costs
Number of
Grade One-Half of Per-
Pupil Costs Unhoused Allowable Cost
Group
Students
K-6 $4,892.50 0 50.00
7-8 $6,292.50 34 $213,945.00
9-12 $2,047.00 67 $137,149.00
Total N/A 101 $351,094.00
4) Local Funds Dedicated to School Facilities Necessitated by Future Development The District has no funds dedicated to school facilities necessitated by future development. All District funds available for additional school facilities are required to provide facilities for existi ng unhoused students.
In addition, the District has no property that has been determined to be surplus and is available for sale to finance school facilities as required to be considered by Government Code Section 65995.6(b)(1).
In November of 2020 the Districts' voters approved Measure Q, which reauthorized $12.6 million of prior bonds and authorized an additional $34.4 million in capital outlay, for a total of $47 million of voter approved capital facility debt. Of this amount the District is currently budgeting $5,625,000 for the construction of new capacity generating facilities. All remaining Measure Q funds are budgeted for the replacement and/or modernization of existing facilities. With the passage of Measure Q, all proceeds from the prior bond measure from 2016, Measure V, have been expended or encumbered.
The District has approximately $322,211 available for new school facilities, including restricted funds. As shown below, all of this $322,211 and $5,625,000 from Measure Q is required to provide facilities for currently unhoused pupils in the District.
As outlined in Table 1-7, the District currently has 69 7-8 students and 408 9-12 students that are unhoused
8 DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report Table 1-7
Existing Unhoused Pupils
Grade Current 2021/22 Existing
Group Capacity Enrollment Unhoused Pupils
K-6 4,774 4,156 0
7-8 1,202 1,271
9-12 2,728 3,136 408
Total 8,704 8,563 477
Table 1-8 summarizes the cost of providing school facilities for these students. Table Locause phe evil fame is had are twice the alo able at for ost of pro i fe school facilities, as defined in the State School Facility Program). Per-pupil site acquisition and development costs are the same as those used to calculate the allowable cost for Level II fees (See Table 1-5).
Table 1-8
Cost of Providing School Facilities for Existing Unhoused Students Existing Per-Pupil Site
Grade Per-Pupil
Group Unhoused Acquisition and Total Cost
Grant Costs Development Costs
Pupils
K-6 0 $30,460 $9,785 $0
7-8 69 $31,812 $12,585 $3,063,393
9-12 408 $40,068 $4,094 $18,018,096
Total 477 N/A N/A $21,081,489
Comparing the potential local funds available for new school facilities ($5,947,211) to the cost of providing school facilities for existing unhoused students ($21,081,489) demonstrates that all District funds available for facilities are required to provide facilities for existing unhoused students.
5) Total Allowable School Facility Cost for Level II Fees Table 1-9 shows the total allowable cost for Level Il fees for K-6, 7-8 and 9-12 students from future residential development.
9 DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report Table 1-9
Total Allowable Cost for Level II Fees
Category Amount
SFP Grant $1,883,082.00
Site Acquisition and Development $351,094.00
Less Local Funds N/A
Total $2,234,176.00
B. Amount of Level II Fee
The Level Il fee is calculated by dividing the total allowable cost by the amount of new residential square footage projected to be built in the District over the next five years.
As stated in Section II.A.1. above, over the next five years, 10 single-family units and 235 multi-family units are projected to be built in the District. Based on discussions with the City of Calexico and the County of Imperial planning departments, this report estimates that average square footages for single- and multi-family units over the next five years will be 1,312 and 828 square feet, respectively. Multiplying the average square footage by number of units projected produces a total of 207,700 square feet of new residential development to be built in the next five years. Dividing the total allowable school facility cost by the projected total new dwelling unit square footage results in a Level II fee of $10.76 per square foot of new residential development.
The calculation of Level Il fees, in accordance with the formulas provided in the statutes, will likely be understated when measured against the actual calculation of costs due to the limited inclusion of cost categories to determine actual costs per student and the fluctuating student generation rates. The District needs to account for these issues when conducting a revenue/cost analysis utilizing the calculated Level Il fee.
C. Amount of Level III Fee
Under certain circumstances, State law allows school districts to charge a fee higher than a Level Il fee if: (1) the District meets the requirements for Level I fees and (2) the State Allocation Board is no longer approving apportionments for new construction pursuant to Article 5 (commencing with Section 17072.20) of Chapter 12.5 of Part 10 of the Education Code, which it did on May 25, 2016 and confirmed to the legislature on November 1, 2016. In the District's case, this higher fee, referred to as a Level III fee. can be no more than twice the Level II fee. Therefore, the maximum Level III fee the District is authorized to charge is $21.52 per square foot of new residential development.
End of Section
10 DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report III. Findings and Recommendations
This Section (1) shows that the District meets the requirements of Government Code Section 6001, regarding the collection of developer fees, (2) summarizes other potential funding ources for the District's capital projects, and (3) presents recommendations regarding th collection of developer fees.
A. Findings
(1) Government Code Section 66001(a)(1) - Purpose of the Fee The purpose of collecting Level Il and III fees on residential development is to acquire funds to construct or reconstruct school facilities for the students generated by future residential developments.
(2) Government Code Section 66001(a)(2) - Use of the Fee The District's use of the fee will involve constructing and/or reconstructing new elementary, middle and high school campuses and/or additional permanent facilities on existing elementary, middle and high school campuses. In addition, the District may build other school related facilities or purchase or lease portable classrooms to use for interim housing while permanent facilities are being constructed.
Revenue from Level Il and III fees collected on residential development may be used to pay for all of the following:
(1) land (purchased or leased) for school facilities,
(2) design of school facilities,
(3) permit and plan checking fees,
(4) construction or reconstruction of school facilities, (5) testing and inspection of school sites and school buildings, and (6) interim school facilities (purchased or leased) to house students generated by future development while permanent facilities are being constructed. (3) Government Code Section 66001(a)(3) - Relationship Between Fee's Use and the Type of Project on Which the Fee is Imposed
All types of new residential development—including but not limited to single- and multi-family units in new subdivisions and in "in-fill" lots, single- and multi-family units in redevelopment projects, single- and multi-family units that replace like-kind demolished units, additions of residential space to existing single- and multi-family units, manufactured homes, mobile homes and condominiums-are projected to cause new families to move into the District and, consequently, generate additional students in the District. As shown earlier in this Report, sufficient school facilities do not exist for these students. Therefore, all types of new residential development create a need for additional school facilities. The fee's use (construct or reconstruct school 11 DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report facilities) is reasonably related to the type of projects (new residential developments) on which it is imposed
(4) Government Code Section 66001(a)(4) - Relationship Between the Need for the Public Facility and the Type of Project on Which the Fee is Imposed The District is currently operating over capacity at the 7-8 and 9-12 grade groups, that is, the District has no available capacity to house additional students and the middle school and high school grade groupings. Future residential development in the District will generate additional students and, consequently, a need for additional school tacilities. Theretore, a relationship exists between the District's need to construct or reconstruct school facilities and new residential development projects. (5) Government Code Section 66001(b) - Relationship Between the Fee and the Cost of the Public Facility Attributable to the Development on Which the Fee is Imposed This Report concludes that the methods prescribed by the State law for estimating school facility construction costs, and for calculating the Level II and Level III fees, supports the establishment of Level II and Level Ill fees which, when collected, will contribute to the District's cost of constructing and reconstructing school facilities to house students generated by future residential development. (6) Other Funding Sources
The following is a review of other potential funding sources for constructing school facilities:
a) General Fund
The District's General Fund budget is typically committed to instructional and day-to-day operating expenses and not used for capital outlay uses, as funds are needed solely to meet the District's non-facility needs. b) State Programs
The District has applied for and received State funding for construction of new school facilities under the 1998 Leroy F. Greene School Facility Program.
Even projects funded at 100 percent of the State allowance, however, often experience a shortfall between State funding and the District's actual facility needs. State funds for deferred maintenance may not be used to pay for new facilities. State law prohibits use of lottery funds for facilities. c) General Obligation Bonds
School districts can, with the approval of either two-thirds or 55 percent of its voters, issue general obligation bonds that are paid for out of property taxes.
The District passed a $45 million general obligation bond, Measure V, in November 2016. The District passed a $47 million general obligation bond, Measure Q in November 2020. These funds are accounted for in the report. 12 DRAFT
Calexico Unified School District - 2022 School Facility Needs Analysis and Justification Report d) Parcel Taxes
Approval by two-thirds of the voters is required to impose taxes that are not based on the assessed value of individual parcels. While these taxes have been occasionally used in school districts, the revenues are typically minor and are used to supplement operating budgets.
e) Mello-Roos Community Facilities Districts
This alternative uses a tax on property owners within a defined area to pay long-term bonds issued for specific public improvements. Mello-Roos taxes require approval from two-thirds of the voters (or land owners if fewer than 12) in an election.
f) Surplus Property
The District has no properties that have been declared surplus and are available for sale or lease to finance school facilities.
g) Alternatives for Reducing Facility Costs
Alternatives to reducing facility costs, which have been used and/or explored by the District, include additional portable classrooms, joint-use of facilities, multi-track-year-round education and other measures. These options remain available to the District in the future.
B. Recommendations
Based on the findings outlined above, it is recommended that the District's Board of Education, as provided for in Government Code Sections 65995.5 and 65995.7, adopt a resolution to approve and authorize the levying of Level II and Level III fees on new residential construction, including other residential construction if justified, in the amounts of $10.76 and $21.52 per square foot, respectively.
End of Report
13 DRAFT
Appendix A
Calculation of Allowable
Per-Pupil Grant Costs
DRAFT
Appendix A
Calculation of Allowable Per-Pupil Grant Costs
The per-pupil grant costs, calculated per the provisions of Government Code Section 65995.5(c)(1), include the School Facility Program (SFP) grants outlined in Education Code Section 17072.10, fire alarm and sprinkler grants mandated by Education Code Section 17074.56(a).
Table A-1 increases the SFP base grant amounts by per-pupil grant increases mandated by SB 575 (fire alarm and sprinkler grants). The sum of SFP base grant amounts, per-pupil grant increases mandated by SB 575, will be used in calculating the District's Level II/III Table A-1
SFP Per-Pupil Grants Plus Fire Alarm/Sprinkler Funding
Non-
7-8 Severe
Grade Group K-6 9-12
Special
Day Class
SFP Grant $14,623 $15,466 $19,679 $27,480
SB 575 Fire Alarm Grant $17 $23 $39 $52
SB 575 Sprinkler Grant $245 $292 $303 $519
50% Total Grant $14,885 $15,781 $20,021 $28,051
100% Total Grant $29,770 $31,562 $40,042 $56,102
Regular Pupil Adjustment* $28,990 $31,240 $39,978 n/a
Non-Severe SDC Adjustment** $1,470 $572 $90 n/a
$30,460 $31,812 $40,068
* Based on the percentage of Students enrolled in the District in 2021/22 that are not Special Day Class (SD) (i.e., percentage of K-6 [97.38%], 7-8 [98.98%] and 9-12 students [99.84%]).
** Based on the percentage of Non -Severe SC Students enrolled in the District in 2021/22 (i.e., percentage of K-6 [2.62%], 7-8 [1.02%] and 9-12 [0.16%] students).
Estimated total funding for the K-12 cost models in Table A-2 equals the new per-pupil base grants calculated above added to the per-pupil site acquisition and site development figures calculated in Appendix B and C, multiplied by the pupil capacity of each K-12 cost model.
DRAFT
Appendix B
Calculation of Allowable Per-Pupil Site Acquisition Costs DRAFT
Appendix B
Calculation of Allowable Per-Pupil Site Acquisition Costs The site sizes for the District's projects are consistent with the acreage amounts outlined in the guidelines in the "School Site Analysis and Development Handbook" (1966 Edition) published by the California State Department of Education (CDE).
Site acquisition costs for the District's elementary, middle and high school cost models are based on (1) actual and estimated land acquisition costs provided by District administrators and (2) applicable increases pursuant to Section 1859.74 of Title 2 of the California Code of Regulations for appraisals, surveys, site testing, CDE review/approval, preparation of the POESA and PEA and the DTSC cost for review, approval, and oversight of the POESA and Table B-1 calculates the total site acquisition costs for each cost model for future facilities:
Table B-1
Calculation of Total Site Acquisition Cost
Cost Model Site Acquisition Total Site
Acreage* Acquisition
Per-Acre
New Elementary School $50,000 10.0 $500,000
New Middle School $50,000 20.0 $1,000,000
High School Additions $50,000 $0
(so Faitor politic by the rage amouns outined in the sudelines in the Schol Sie Analysis and Devilopment Handbo Table B-2 calculates the per-pupil site acquisition costs by grade grouping by taking the per- pupil site acquisition costs of all of the above cost models and calculating the average cost per grade group.
(continued on the next page)
DRAFT
Table B-2
Calculation of Per-Pupil Site Acquisition Costs by Grade Grouping K-6 Cost Models
Total Site K-6 Per-Pupil
School K-6 Pupils
Acquisition Site Acq. Cost
New K-6 $500,000 500 $1,000
Totals $500,000 500 N/A
100% Cost $1,000
7-8 Cost Model
School Total Site 7-8 Pupils 7-8 Per-Pupil
Acquisition Site Acq. Cost
New 7-8 $1,000,000 900 $1,111
Totals $1,000,000 900 N/A
100% Cost $1,111
9-12 Cost Model
Total Site 9-12 Pupils 9-12 Per-Pupil
School
Acquisition Site Acq. Cost
New 9-12 $0 0 $0
Totals 0 N/A
100% Cost
DRAFT
Appendix C
Calculation of Allowable Per-Pupil Site Development Costs DRAFT
Appendix C
Calculation of Allowable Per-Pupil Site Development Costs Site Development Costs for a K-6 School
Estimated service site development, off-site development and utility costs for District elementary school cost model projects are based on the average allowable site development costs, as defined in Section 1859.76 of Title 2 of the California Code of Regulations, of (1) the site development costs associated with the Cesar Chavez Elementary School project, approved at the August 23, 2006 meeting of the State Allocation Board, and has had the allowable costs adjusted by the percentage change in the SAB approved statewide cost index adjustment from 2006 to 2022. These costs are as follows:
Table C-1
Site Development Costs for a New Elementary School
Cesar Chavez School Project Costs
Cesar Chavez School Site Development Costs $3,299,384
SAB Approved Statewide Cost Index Adjustment (81.99%) $2,705,165 Total Site Development Cost $6,004,549
Per-Pupil Site Development Cost $6,005*
*Equals total site development cost of the Cesar Chavez Elementary School divided by the total capacity of the Cesar Chavez Elementary School (1,000 students).
Estimated general site development costs for District elementary school projects are based on the average allowable general site development costs, as defined in Section 1859.76 of Title 2 of the California Code of Regulations, for the District's Cost Model Project. These costs are as follows:
Table B-3
General Site Development Costs for a New Elementary School Per-Acre Pupils Per-Pupil Costs
New Elementary School Projects Acres Cost
Cost
Elementary School
Per-Useable Acre General Site Cost 10 $47,604 n/a n/a $476,040 Per-Pupil General Site Cost n/a n/a 500 $1,828* $914,000 Totals | 10 n/a 500 n/a $1,390,040
Average Per-Pupil General Site Development Cost** $2,780 *Equals 6% of the K-6 per-pupil base grant amount of $30,460 **Equals the totals of the General Site Costs, divided by the total capacity of a new elementary school (500 students) The total anticipated Site Development Costs for District New Elementary School projects equals the per-pupil service site, off-site and utilities development cost for the District's elementary school cost model project, plus the average per-pupil general site development costs related to the District's elementary school cost model project. The following table illustrates the total per-pupil site development costs for future District Elementary School projects.
DRAFT
Table B-4
Total Site Development Costs for a New Elementary School New Elementary School Projects Costs
Average Per-Pupil Service Site, Off-Site and Utility Costs $6,005 Average Per-Pupil General Site Development Costs $2,780 Total Per-Pupil Site Development Cost $8,785
Site Development Costs for a New Middle School
Service site development, off-site development, and utilities costs for a new District 7-8 cost model project are based on SAB approved Site Development Costs, as defined in Section 1859.76 of Title 2 of the California Code of Regulations, for Imperial Unified's Frank Wright Middle School. The Frank Wright Middle project was approved on September 28, 2005, and has had allowable costs adjusted by the percentage change in the SAB approved statewide cost index adjustment from 2005 to 2022. These costs are as follows:
Table B-5
Site Development Costs for a New Middle School
New Middle School Project Costs
Frank Wright Middle School Site Development Costs $4,399,560 SAB Approved Statewide Cost Index Adjustment (81.99%) $3,979,402 Total Site Development Cost $8,378,962
Per-Pupil Site Development Cost $8,507*
*Equals total site development cost of the Frank Wright Middle School divided by the total capacity of the Frank Wright Middle School (985 students).
Estimated general site development costs for District middle school projects are based on the average allowable general site development costs, as defined in Section 1859.76 of Title 2 of the California Code of Regulations, for the District's Cost Model Project. These costs are as follows:
Table B-6
General Site Development Costs for a New Middle School
Per-Acre Pupils Per-Pupil Costs
New Middle School Project Acres
Cost Cost
Middle School
Per-Useable Acre General Site Cost 20 $47,604 n/a n/a $952,080 Per-Pupil General Site Cost n/a n/a $1,909* $1,718,100
Average Per Pupil General Site Development Caste l Totals | $2,670,180 $2,967
*Equals the outs of he enera Sie Cos, divided by the total capaciy of a nev midle schol (900 sudents).
The total anticipated Site Development Costs for the District New Middle School project equals the per-pupil service site, off-site and utilities development cost for the District's middle school cost model project, plus the average per-pupil general site development costs DRAFT
related to the District's middle school cost model project. The following table illustrates the total per-pupil site development costs for future District Middle School projects.
Table B-7
Total Site Development Costs for a New Middle School
New Middle School Project Costs
Average Per-Pupil Service Site, Off-Site and Utility Costs $8,507 Average Per-Pupil General Site Development Costs $2,967 Total Per-Pupil Site Development Cost $11,474
Site Development Costs for a New High School Addition
Service site development, off-site development, and utility costs for the District's New High School additions are based on the District Architect's estimate of allowable costs, as defined in Section 1859.76 of Title 2 of the California Code of Regulations. These costs are as follows:
Table B-8
Site Development Costs for a New High School Addition
New High School Addition Projects Costs
Imperial High School Site Development Addition Costs $3,094,758 Total Site Development Costs $3,094,758
$4,094**
**Equals total site development cost of the Calexico High School addition project divided by the total capacity of the Calexico High School DRAFT