Loading...
HomeMy WebLinkAbout1985 11-19 CC JT MINBook 66/Page 131 11 /19/85 MINUTES OF THE JOINT MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AND THE BOARD OF THE SWEETWATER UNION HIGH SCHOOL DISTRICT Main Conference Room, Civic Center November 19, 1985 The meeting of the Sweetwater Union High School District was already in session when joined by the City Council. (The members of the SUNS District School Board: Rick Aguilar, Judy Bauer, Ruth Chapman, Lita David, Steven Hogan were present, as was District Superintendent: Anthony J. Trujillo.) Mayor Morgan called the City Council to order at approximately 6:00 p.m. ROLL CALL Council members present: Cooper, Dalla, VanDeventer, Morgan. Absent: Waters. Administrative Officials present: Bolint, Campbell, McCabe. Mayor Morgan welcomed the school board to National City. Board Member Hogan expressed the hopes of the Board that the meeting would be the beginning of accomplishment. DEVELOPER FEES District Superintendent Trujillo spoke of developers' fees for school facilities; the fact that Sweetwater Union High School District had to file a 201, DECLARATION OF OVERCROWDEDNESS; saying that is part of what they would like to discuss today; a phenomena in National City and the older parts of the District is the need for additional school facilities even though there has not been a tremendous amount of new homes built; what is happening in National City and other older communities is that older people are moving out of their homes and large families are moving in; Sweetwater High School is one of the largest in terms of number of students and yet has one of the smallest campuses. Mayor Morgan suggested this be laid over to be an item on City Council agenda. Councilman Dalla said he was talking about growth without building; there is not much growth in National City. District Superintendent Trujillo said when Proposition 13 came into being, the schools lost their ability to tax; nobody wanted to use developers' fees while there was no growth in the number of school attendees; the growth began to hit the State selectively; the Board has tried to find ways to deal with it; the only way available to the District now is to implement developers' fees —or try to stop development; they were trying to find a way to spread the costs as equitably as possible; they have made a study of existing dwelling units and the number of students and have arrived at a figure of 2.7 students per dwelling unit. Mr. Trujillo spoke of different formulae for determining developers' fees and distributed copies of "DEVELOPER FEE RECOMMENDATION" — See Exhibit "A" attached. There was general discussion of the Recommendation distributed and the fact that 184 units would be built in the Valley Road Developm ent recently approved. Councilman Dalla inquired about use of the Lottery monies to be allocated to the schools. Mr. Trujillo said the State has prohibited the use of those funds for buildings. City Manager Mc Cabe inquired if the lottery funds were used in another area, wouldn't that free other funds? Mr. Trujillo said that would not do it; when they look at their salaries, the utilities, etc. —they have control of only 5% of their budget. City Manager McCabe suggested they use the lottery money for salaries and go on double session. Mr. Trujillo said the schools will get only 34% of the lottery gross; then you divide that amount by five million (total number of students in the State) for the amount per student; and multiply by the 24,000 students in the District. REDEVELOPMENT Mr. Trujillo spoke of REDEVELOPMENT Funds; City Council's interest in schools and their continued support of the schools, particularly Sweetwater High School, with the sm allest campus and the largest student body-24 acres and 1,800 students; and said there is a block of homes across from the school, that would make a natural recreational park to join up with the elementary school to the north—lf, they could be acquired; this Is could be developed for joint use. Mr. Trujillo also spoke of the success rate of minority students throughout the state which is devastating. Mr. Trujillo distributed copies of CHAPTER ONE — WHY BE INTERESTED IN REDEVELOPMENT? — see Exhibit "B" attached. Book 66/Page 132 11 /19/85 Board Member Aguilar spoke of Redevelopment and the need for white collar residents In National City. Mayor Morgan spoke of some of the things Redevelopment funds have been used for in the City. Councilman Dalla said there would not be any Redevelopm ent funds available until the year 2000; the City has already sold bonds and the tax increment money for 3/4 of the City is committed for the next twenty to twenty—five years, or beyond the year 2000. Vice Mayor VanDeventer said we are stuck with some of the action Council has taken in the past; the biggest problem we have is that we have to tear down the units in the Downtown area before developers will even look at the land; we are lim ited in what we can do; we are concerned, but we have no avenue either. Mayor Morgan spoke of the "good —will" money that state law requires the Community Development Agency to pay over and above the cost of buying the real property, this sometimes amounts to more than the actual cost of the real property. Councilman Cooper said the only benefit the District might derive from Redevelopment would be user fees. Vice Mayor Van Deventer explained that for one furniture company, within the Downtown Redevelopment area, the "good —will" is going to cost the City at least one million dollars. General discussion about the District's long range planning (at present non— existent for Sweetwater High School); the presentation at this meeting is what they hope to do; the District has the power of eminent domain to acquire the properties mentioned, if they had the funds. Further discussion about the possible acquisition of the properties which constitute about 18 acres, which would increase the Sweetwater campus to roughly 40 acres. It was agreed (consensus, no vote taken) that City staff would meet with the District's consultant and staff. Each member of the District Board spoke briefly. The joint meeting was adjourned at 6:43 p.m. h i/ L CITY CLE�tK The foregoing minutes were approved at the regular meeting of December 10, 1985. Corrections No coruections MAY CITY OF NATIONAL CITY, CALIFORNIA attachment 1 DEVELOPER FEE RECONNENDATION . 0efined area (11/2 miles from existing high schools) Sq. ft. : Phase I Phase II ," Phase•III Phase IV r 7/1/85- 9/30/85 10/1/85- 12/31/85 1/1/86- 3/31/86 4/1/86- 6/30/86 7/1/86- 0-1,000 $1,060* $1,370 $1,680 $1,990 $2,300 1,001-1,300 $1,385 $1,800 $2,190 $2,595 $3,000 1,300 + $1,705 $2,220 $2,700 $3,200 $3,700 *All amounts to be adjusted automatically by the Engineering News Record Construction Cost Index. II. Undefined area (in excess of 1i miles from existing high schools) Sq. ft. July 1, 1985 0-1,000 1,001-1,300 1,300 + $2,300* $3,000 $3,700 *Ail amounts to be adjusted automatically by the Engineering News Record Construction Cost Index. III. It is also recommended that: A. A task force be established to study alternative methods of funding for school construction. 8. Fees scheduled for Phase II be studied in November, 1985, to determine if it is necessary to implement Phase II, III, and/or Phase IV. EXHIBIT "A" Page 1 attachment 2 "You Get What You Pay For" No additional facilities - Stop issuing letters of availability. 750** Add temporary facilities to existing sites.* 1,500 Construct permanent facilities on existing sites. 2,000 Add temporary facilities on expanded sites.. 3,000 Combination of construction of permanent and adding of temporary facilities or new sites. 3,700 Construct permanent facilities on new sites. -Cost to construct Sr. High School - 1800 students $25,000,000 - Cost to construct Jr. High School - 1200 students $15,000,000 - Pupil Generation Factor .27*** - Administrative charges (2.8%) $100 per unit Formula [($40,000,000 - 3,000 students) x .27 PGF] + $100 = $3,700 EXHIBIT"A" Page 2 attachment 3 Column 1 Column 2 Column 3 Column 4 Column 5 : r ) : Column 6 - Column .7 Total Permanent Projected Projected Available Temporary Permanent Capacity & Temporary Capacity Enrollment 1985-86 Growth 1985-86 Enrollment Permanent Capacity Capacity + available - overcrowded Northern Area Granger Junior High National City Junior High 1,179 1,123 1,179 1,183 861 1,095 1 1 2 �862 1,091,096 6 + 317 .:: + + 2127 ' + 60+ 26 Sweetwater High 1,803 2,027 1,933 East Junior High 1,364 1,364 _ 1,165 146 .' 1,311 + + 5393 .. Bonita Vista Bonita Vista High 1,464 1,464. - 1,420 136 1,556' Central District 10 997 + 345 Castle Park Middle Chula Vista Junior High Hilltop Junior High Castle Park High Chula Vista High � Hilltop High 1,342 1,185 1,471 1,601 , 1389 1,421 1,342 1,545 1,471 1,713 1837.\ , 1,421 987 1,460 1,260 1,777 1,864 1,418 23 24 10 22 22 1,483 1,284 1,787• 1,886• 1,440• - 298 + 187 - 186 -, 497 - 19 + 360 + 112 + 448 Southern Area 28 1,037+ + 289 Mar Vista Middle 1,326 1,326 1,009 21 1,419 + 183 Montgomery Junior High Southwest Junior High Mar Vista High Montgomery High Southwest High 1,602 885 1,358 1,335 1,239 1,602 1,035 1,414 1,503 1,687 1,398 1,066 1,514 1,779 1,793 55 26 19 51 - 1,121• 1,540• 1,798• 1,844• 236 - 182 - 463 - 605 + 150 + 56 + 168 + 448 rop 1 r- a) w wH a ,ignetee ove crowded conditions including perma- nent and temporary capacity Column 1 - represents school site/district capacity as determined by district's master plan and is representative of classroom capacity as mandated by the State of California. Column 2 - represents the addition of Columns 1 and 2. projected according to historical data Column 3 - represents projection of site/district enrollments based upon actual sixth day enrollment, pro j to end of first month (October 4, 1985). Column 4 - represents projected "during school year" growth, i.e., these figures are developed from currently in -progress construction occurring within site/district boundaries. Column 5 - represents what site/district might expect as maximum enrollment for 1985-86. Colusi 6 - represents available site/district student seats and is determined by subtracting Column 4 (projected 1985-86 enrollment) from Column 1 (capacity). Column 7-represents temporary capacity provided by trailer. and/or relocatable classrooms • 1. UCVCIUJcI 1cc. . ..... ..-- r-- -; Expense New S.G.F. .27* Cohort* Total Unhoused Income _ Temporary Facility Balance r - 716,000 07-01-85 1 1 255,000 1985-86 2,000 540 200 740 2,040 :. 1,500,000 :,: . 530,000 1,118,000 1986-87 2,000 540 200 740 2,780 ' 1,500,000 637,000 : 1987-88 2,000 540 200 740 3,520 1,500,000 744,000 1,874,000 2,523,000 1988-89 2,000 540 200 740 4,260 1,500,000 851,000 '3,065,000 1989-90 2,000 540 200, 740 5,000 1,500,000 958,000 3,500,000 1990-91 1991-92 2,000 2,000 540 540 200 \ 200 740 740 5,740 6,480 1,500,000 1,500,000 1,065,000 ` 953,000 4,047,000 4,487,000 1992-93 2,000 540 200 740 7,220 .1,500,000 1,060,000 4,820,000 1993-94 2,000 540 200 740 7,960 - 1,500,000 1,167,000 5,046,000 1994-95 2,000 540 200 740 8,700 1,500,000, 1,274,000 5,165,000 1995-96 2,000 540 200 . 740 9,440 1,500,000 1,381,000 5,177,000 1996-97 2,000 540 200 740 10,180 1,500,000 1,488,000 5,082,000 1997-98 2,000 540 200 ::740 , 10,920 1,500,000 1,595,000 4,880,000 1998-99 2,000 540 200 740 ;1 11,660 1,500,000 >.. '1,500,000 1,702,000 4,571,000 1990-2000 2,000 540 200 740 12,400 1,809,000 *These are methods of determining number of students generated by new housing and moving up from the elementary schools. attachment 4 page 2 of II. Developer Fee: Average of $2,500 first year and $3,000 second year ' New • S.G.F. .27* Cohort* Total Unhoused Income Expense Temporary Facilities Balance 7-01-85 - ' 715,000 1985-86 2,000 540 200 740 2,040 5,000,000 530,000 3,755,000 1986-87 2,000 540 200 740 2,780 6,000,000 637,000 9,118,000 1987-88** 2,000 540 200 740 3,520 - 6.000,000 744,000 14,374,000 1988-89 2,000 540 200 740 3,060 6,000,000 851,000 4,523,000 III. Developer Fee: Flat $3,700 per unit. , New S.G.F. .27* , Cohort* Total Unhoused Income Expense Temporary Facilities Balance 7-01-85 ' ; - 715,000 1985-86 2,000 540 200 740 2,040 7,400,000 530,000 6,155,000 1986-87 2,000 540 200 740 2,780 7,400,000 637,000 12,918,000 1987-88** 2,000 540 200 740 3,520 , 7,400,000 1 744,000 19,574,000 1988-89 2,000 540 200 740 3,060 ,7,400,000 851,000 11,123,000 *These are methods of determining number of students generated by new housing and moving up from the elementary schools. **Sufficient fees collected to build a phase I high school to house 1,200 students. EXHIBIT "B" CHAPTER ONE WHY BE INTERESTED IN REDEVELOPMENT? As you have pondered the many problems confronting your local school district, have you ever wondered how some cities and counties have been able to survive under Proposition 13? Your district cannot maintain current facilities adequately or construct new buildings. How can cities or counties do it? As a partial answer, some California cities and counties are using the formation of community redevelopment agencies more and more to provide for their capital outlay needs. A few alert school districts have been able to become partners in this effort and have secured needed financial resources for use in providing a more adequate education program. Some Success Stories Just look at what some enterprising districts have done: o During the next 45 years, the San Jacinto Unified School District will receive an estimated $20,000,000 to rehabilitate school facilities, construct needed classrooms, and provide for landscaping and grounds improvements as examples of some of the things that will be done. o Pomona Unified School District was able to construct a twenty-four classroom elementary school with an estimated cost of $3,200,000 at no cost to the district. -1- EXHIBIT "B" o One school district which requested not to be identified has approximately $6,200.,000 on account with a redevelopment agency for which it is receiving about $650,000 in annual interest. These funds were contributed by the agency for "financial damages" to the district and for the purchase of certain school property. o The Capistrano Unified School District is in the process of securing an agreement involving the allocation of additional funds to be used for school housing purposes. There are many other examples. These are just several illustrations of benefits accruing to those school districts that have discovered community redevelopment laws. Redevelopment? What's That? California community redevelopment laws authorize cities and counties to establish an agency which has responsibility for eliminating blight. In the broadest terms, the elimination of blight includes such things as construction of streets, improvement of municipal water systems, development of shopping centers and industrial complexes, construction of municipal offices and facilities, and sometimes the clearance of slums to name but a few of the activities. Once these agencies go to work, they are able to divert property tax monies away from all other local public agencies including school districts. These redevelopment agencies are using in part local school district taxes for their capital outlay purposes. -2- EXHIBIT "B" To Turn Off or Turn On? Redevelopment as a term sounds ominous. It is not referred to in university course work, and it really relates to other public agencies, cities and counties, which are strange stamping grounds for most of us school people. Because of this, the easiest thing is to turn off and ignore this possible avenue of school finance. As a school administrator or board member, you have a real challenge providing and maintaining adequate school facilities during a time when dollars are short. If you are interested in another option, seriously look at a partnership arrangement with a city or county redevelopment agency. An investigation of this opportunity might lead to the resolution of some severe capital outlay problems. One of the obstacles that will confront school people in this effort will be the resistance of city and county officials to any intrusion by others who may wish to share in the division of this important source of revenue. Therefore, if you start on this avenue, don't let the first "no" of a city or county redevelopment official turn you off. After all, you may be introducing them to a new concept and some mutual education may be in order. The intent of this treatise is to provide you with information to first turn you on to an opportunity, and secondly, to provide you with the necessary knowledge to deal effectively with city and county redevelopment officials to secure a fair share of these revenues. Other school districts are sharing in these revenues. Why not your district? You honestly need to read on! -3- EXHIBIT "B" Although the term school district is used throughout this document, it also includes community college districts in precisely the same way. Most of the principles outlined also have application to other local agencies that are dependent upon local tax revenues. -4-