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HomeMy WebLinkAbout1996-06-11 - AGENDA REPORTS - ASSEMBLY BILL 3174 (2)City Mana€ Item to be Michael P. Murphy CONSENT CALENDAR DATE: June ll, 1996 SUBJECT: STATE LEGISLATION: ASSEMBLY BILL 3174 DEPARTMENT: City Manager's Office As a result of conversations between Mayor Pro Tem Smyth and members of the local education community, the City Council is requested to oppose Assembly Bill 3174 (Brulte) relating to school development fees. AB 3174 specifically seeks to legislatively repeal three court decisions, including the 1991 William S. Hart Union High School District v. Regional Planning Commission County of Los Angeles, which broadened local agencies' authority to consider the impact of new development on school facilities. The measure also codifies a cap on, developer fees levied by school districts for new facilities construction to $1.72 per square foot on residential development approved before January 1, 1997 and $1.84 per square foot for construction approved after that date. Commercial and industrial development would be charged at the rate of $0.28 per square foot. Future adjustments for inflation are included in AB 3174. AB 3174 further mandates that the state assumes full regulatory authority of the school development fee subject area. Furthermore, local land use authorities would no longer be able to consider the adequacy of school facilities in connection with any legislative or administrative act relative to development approvals. Supporters of the bill argue that the legislation restores the intent of 1986 AB 2926, which set limitations on local developer fees. AB 3174 places more reliance on local general obligations bonds as a funding source which has increasingly met with voter resistance, thus placing a greater financial burden on developers. Finally, the bill establishes a statewide, uniform standard for school mitigation fees. Opponents argue that the bill takes away local control in that local governments may no longer consider the adequacy of school facilities during development approval deliberations. The bill A polPROVED , ,. fails to recognize the variance of circumstances from community to community including school facilities needs, land costs and construction costs. Finally, opponents argue that the bill is being sold under the guise of concern over affordable housing but it only addresses school construction costs which is a single component of the overall cost of housing in California. It is anticipated that all of the local school districts will need additional facilities due to future development both in the incorporated and unincorporated areas, The original 1986 school fee mitigation legislation proved inadequate forcing the William S. Hart Union High School District into court and the court found in favor of the district. A local fee was negotiated several years ago by the City of Santa Clarita, County of Los Angeles, local school districts and building industry which recognized local facilities needs and the concerns of all parties, thus demonstrating the importance of a local component in the school facilities issue. The William S. Hart Union High School District is opposed to AB 3174. Although a formal position has not been taken on the bill, according to Newhall School District Superintendent J. Michael McGrath, Ed.D., this legislation is contrary to policy positions previously established by the Board of Trustees. The Newhall School District is also investigating the impact of the legislation on "free will" mitigation agreements between school districts and developers which may provide more generous school facilities mitigation than prescribed in AB 3174. AB 3174 has been approved by the Assembly and is awaiting consideration by the State Senate, Oppose Assembly Bill 3174 and transmit position statements to members of Santa Clarita's state legislative delegation, League of California Cities, Contract Cities Association and Independent Cities Association. Assembly Bill 3174 Statement of Opposition by the William S. Hart Union High School District MPM.eb3174agd.611 Then, press <ENTER> to continue => In bill text, brackets have special meaning: [A> <A] contains added text, and [D> <D] contains deleted text. California 1995-96 Regular Session 1995 CA AB 3174 Amended Brulte AMENDED IN ASSEMBLY APRIL 8, 1996 ASSEMBLY BILL No. 3174 INTRODUCED BY Assembly Member Brulte FEBRUARY 23, 1996 An act to amend Sections 65995 and 65996 of the Government Code, relating to development. LEGISLATIVE COUNSEL'S DIGEST AB 3174, as amended, Brulte. Development: fees: school facilities. (1) Existing law authorizes the legislative body of certain local agencies to impose limited fees or other charges against certain development projects to fund the construction or reconstruction of school facilities. Existing law more specifically limits those fees or other charges against a residential development project to $1.50 per square foot of assessable space, as defined, and against a commercial or industrial development to $0.25 per square foot of chargeable covered and enclosed space, as defined, and permits those limits to be adjusted biennially according to a specified formula. As of January 1994 those amounts had been adjusted to $1.72 and $0.28 respectively. This bill would provide that for residential construction within tentative maps or parcel maps approved prior to January 1, 1997, the fees or other charges would be limited to $1.72 per square foot of assessable space, and for residential construction within tentative maps or parcel maps approved on or after January 1, 1997, the fees or other charges would instead be limited to [D> $2.72 <D] [A> $1.84 <A] per square foot of assessable space. The bill would also provide that for commercial or industrial development, the fees or other charges would instead be limited to $0.28 per square foot of chargeable covered and enclosed space, (2) Existing law prohibits the legislative body of a local agency from levying development fees or other requirements for the construction or reconstruction of schools, other than pursuant to designated statutory authority. This bill instead would prohibit fees or other requirements for the construction or reconstruction of schools, from being levied or. imposed in connection with, or made a condition of, any legislative or administrative act by any state or local agency involving the planning, use, or development of real property or any governmental change of organization or reorganization, other than pursuant to designated statutory authority. (3) Existing law provides that the limits on fees or other charges against certain development projects to fund the construction or reconstruction of school facilities shall be increased in 1990, and every 2 years thereafter, according to a specified formula. This bill instead would provide that the limits on fees or other charges imposed to fund the construction or reconstruction of school facilities shall be increased in 1998, and every two years thereafter. (4) Existing law prescribes the exclusive methods that may be required by local agencies to mitigate environmental effects related to the adequacy of school facilities when considering, under the California Environmental Quality Act (CEQA), the approval, or the establishment of conditions for the approval, of a development project [A> , including pursuant to the Mello -Roos Community Facilities Act of 1982 <A] . Existing law prohibits a public agency, in the exercise of its authority to adopt general plans, zoning laws, and other land use legislation, from denying approval of a. project on the basis of the adequacy of school facilities. This bill would instead prohibit a state or local agency from considering the adequacy of school facilities, whether or not it is a condition contained in an existing legislative enactment, in connection with any legislative or administrative act involving the planning, use, or development of real property or any governmental change of organization or reorganization, except as specified. This bill would also provide that the restrictions described above upon the mitigation of environmental effects under CEQA apply in connection with any legislative or administrative action involving the planning, use or development of real property by any state or local agency or any governmental change of organization or reorganization pursuant to CEQA. [A> The bill would provide that with respect to mitigation of environmental effects pursuant to the Mello -Roos Community Facilities Act of 1982, that participation in a community facilities district shall not be made a condition of approval of, nor be considered when determining whether to approve, certain legislative or administrative acts, or of any change of governmental organization or reorganization, as defined. The bill would state that the provisions relating to participation in a community facilities district are declaratory of existing law, for specified reasons. <A] This bill would specify that any conditions imposed by a state or local agency in connection with the approval of a specific development project prior to January 1, 1997, shall not be affected, nor shall obligations under certain prior existing contracts between a builder, owner, or developer and any school district, city or county be affected by the change reflected in this item (4). (5) This bill would make other technical changes to delete language pertaining to ACA 6 of the 1991-92 Regular Session that failed to receive the approval of the majority of the voters voting on the measure on November 2, 1993. (6) This bill would make legislative findings and declarations related to the Legislature's intent to statutorily reverse specified decisional law, and its intention to limit the amount of fees and other charges imposed in connection with the construction or reconstruction of school facilities. (7) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares as follows: (a) It is the intent of this act to statutorily reverse the decisions reached by the California Courts of Appeal in Mira Development Corp. v. City of San Diego, 205 Cal App. 3d 1201 (1988); William S. Hart Union High School District v. Regional Planning Commission of the County of Los Angeles, 226 Cal. App. 3d 1612 (1991); and Murrieta Valley Unified School District v. County of Riverside, 228 Cal. App. 3d 1212 (1991). More particularly, it is the intent of this act to prohibit local agencies from considering the adequacy of school facilities as part of the land use approval process, whether at the policy level or with respect to the development of specific real property, and further to expand the prohibition to all government agencies. (b) It is the intent of the Legislature to limit the amount of fees, charges, dedications, or other requirements that may be imposed, directly or indirectly, on the development or construction of real property, in connection with the construction or reconstruction of school facilities, to the amount authorized in Section 65995 of the Government Code. SEC. 2. Section 65995 of the Government Code is amended to read: 65995. (a) Except for a fee, charge, dedication, or other requirement authorized under Section 53080, or pursuant to Chapter 4.7 (commencing with Section 65970), no fee, charge, dedication, or other requirement for the construction or reconstruction of school facilities shall be levied or imposed in connection with, or made a condition of, any legislative or administrative act by any state or local agency involving the planning, use, or development of real property or any governmental change of organization or reorganization, as defined in Sections 56021 and 56073. (b) In no event shall the amount of any fees, charges, dedications, or other requirements authorized under Section 53080, or pursuant to Chapter 4.7 (commencing with Section 65970), or both, exceed the following: (1) For construction within tentative maps or parcel maps approved prior to January 1, 1997, one dollar and seventy-two cents ($1.72) per square foot of assessable space, in the case of any residential development. "Assessable space," for this purpose, means all of the square footage within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, detached accessory structure, or similar area. The amount of the square footage within the perimeter of a residential structure shall be calculated by the building department of the city or county issuing the building permit, in accordance with the standard practice of that city or county in calculating structural perimeters. (2) For construction within tentative maps or parcel maps approved on or after January 1, 1997, [D> two dollars and seventy-two cents ($2.72) <D] [A> one dollar and eighty-four cents ($1.84) <A] per square foot of assessable space, in the case of any residential development. "Assessable space," for this purpose is defined in paragraph (1). (3) In the case of any commercial or industrial development, twenty-eight cents ($0.28) per square foot of chargeable covered and enclosed space. "Chargeable covered and enclosed space," for this purpose, means the covered and enclosed space determined to be within the perimeter of a commercial or industrial structure, not including any storage areas incidental to the principal use of the development, garage, parking structure, unenclosed walkway, or utility or disposal area. The determination of the chargeable covered and enclosed space within the perimeter of a commercial or industrial structure shall be made by the building department of the city or county issuing the building permit, in accordance with the building standards of that city or county. (4) The amount of the limits set forth in paragraphs (1), (2), and (3) shall be increased in 1998, and every two years thereafter, according to the adjustment for inflation set forth in the statewide cost index for class B construction, as determined by the State Allocation Board at its January meeting, which increase shall be effective as of the date of that meeting. The State Allocation Board shall not raise the amount of the district matching share calculated under Section 17705.5 of the Education Code, as a result of the increase under this paragraph, until at least 90 days after the date of that increase. (c) (1) Notwithstanding any other provision of law, during the term of any contract entered into between a subdivider or builder and a school district, city, county, or city and county, whether general law or chartered, on or before January 1, 1987, that requires the payment of a fee, charge, or dedication for the construction of school facilities as a condition to the approval of residential development, neither Section 53080 nor this chapter applies to that residential development. (2) Any development project for which a final map was approved and construction had commenced on or before September 1, 1986, is subject to only the fee, charge, dedication, or other requirement prescribed in any local ordinance in existence on that date and applicable to the project. (d) For purposes of Section 53080 and this chapter, "residential, commercial, or industrial development" does not include any facility used exclusively for religious purposes that is thereby exempt from property taxation under the laws of this state, any facility used exclusively as a private full-time day school as described in Section 48222 of the Education Code, or any facility that is owned and occupied by one or more agencies of federal, state, or local government. In addition, "commercial or industrial development" includes, but is not limited to, any hotel, inn, motel, tourist home, or other lodging for which the maximum term of occupancy for guests does not exceed 30 days, but does not include any residential hotel, as defined in paragraph (1) of subdivision (b) of Section 50519 of the Health and Safety Code. (e) The Legislature finds and declares that the subject of the financing of school facilities with development fees is a matter of statewide concern. For this reason the Legislature hereby occupies the subject matter of mandatory development fees and other development requirements for school facilities finance to the exclusion of all [D> local <D] measures on the subject. (f) Nothing in this section shall be interpreted to limit or prohibit the use of Chapter 2.5 (commencing with Section 53311) of Division 2 of Title 5 to finance the construction or reconstruction of school facilities. SEC. 3. Section 65996 of the Government Code is amended to read: 65996. (a) The following provisions shall be the exclusive methods of mitigating environmental effects related to the adequacy of school facilities when considering the approval or establishment of conditions in connection with any legislative or administrative act by any state or local agency involving the planning, use, or development of real property or any change of governmental organization or reorganization, as defined in Sections 56021 and 56073, pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code: (1) Chapter 22 (commencing with Section 17700) of Part 10 of the Education Code. (2) Chapter 25 (commencing with Section 17785) of Part 10 of the Education Code. (3) Chapter 28 (commencing with Section 17870) of Part 10 of the Education Code. (4) Article 2.5 (commencing with Section 39327) of Chapter 3 of Part 23 of the Education Code. (5) Section 53080 of the Government Code. (6) Chapter 2.5 (commencing with Section 53311) of Division 2 of Title 5 of the Government []-)> Code. <D] [A> Code, provided that: <A] [A> (A) Participation in a community facilities district shall not be made a condition of approval of any legislative or administrative act involving the planning, use, or development of real property or any change of governmental organization or reorganization, as defined in Sections 56021 and 56073. <A] [A> (B) Participation or nonparticipation in a community facilities district shall not be considered when determining whether to approve or disapprove any legislative or administrative act involving the planning, use, or development of real property or any change of governmental organization or reorganization, as defined in Sections 56021 and 56073. <A] (7) Chapter 4.7 (commencing with Section 65970) of Division 1 of Title 7 of the Government Code. (b) Except for the authority granted by Sections 53080 and 65970 and this chapter, no state or local agency shall consider the adequacy of school facilities in connection with any legislative or administrative act involving the planning, use, or development of real property or any change in governmental organization or reorganization, as defined in Sections 56021 and 56073. (c) This section shall not affect any conditions imposed by a state or local agency in connection with the approval of the development of specific real property nor shall it affect the obligations under any contract entered into between a builder or an owner or developer of real property with any school district, city, county, or city and county, whether general law or chartered, prior to January 1, 1997. [D> Nothing in this subdivision shall authorize any state or local agency to <D] [A> (d) No state or local agency shall <A] apply or consider any condition, standard, policy, or requirement concerning adequacy of school facilities contained in a general plan, specific plan, zoning ordinance, or similar legislative enactment whether adopted before or after January 1, 1997, in connection with any legislative or administrative act involving the planning, use, or development of real property or any change of governmental organization or reorganization as defined in Sections 56021 and 56073. SEC. 4. [A> The amendments to paragraph (6) of subdivision (a) of Government Code Section 65996 by this act, are declaratory of existing law. The Mello -Roos Community Facilities Act of 1982 contains numerous voter -approval requirements that are to be freely determined by the eligible voters and may not be directed or controlled by conditions of approval or threats of disapproval of any legislative or administrative act involving the planning, use, or development of real property or any change of governmental organization or reorganization, as defined in Sections 56021 and 56073. <A] [A> SEC. 5. <A] Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund. Notwithstanding Section 17580 of the Government Code, unless otherwise specified, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution. END OF REPORT Enter Bill # (or END to exit) _> U'-Cc-ya I U : U '.M PRAM 'NM. S. h;^.1 S HUU;. IIIS Ztkt LARSON & ASSOCIATES May 6,1996 The Honorable Charles Noochigian, Chair Assembly Appropriations Committee State Capitol, Rooin:2114 - Sacramcnto, CA 95814 RL-. AB 31741 (Btulte) OPPOSE Dear Assembly Member poochiswn: On behalf of theVAliarn S. Han Union ITgls School District, we regntfuny strongly oppose AH 3174 (Srulte), which will be heard to the Assembly Appropriations Committee on Wednesday. May 15. The bill would statutord:7 reverse the Mira/Hart/Mureietta court decisions and would specifically prohibit local govern u+enrs from considering the adequacy of school facilities in making decisions about local zoning and general plans.There was good and sufficient reason for the legislature to allow school districts w claxgc x fee on new construction and for the courts to opine is three scpanu decisions that cities and counties are not bound by fee limits if conditions exist which have significant effect on the cost of building a school. Even as the winniayt schuol litigant in one of those decisions Appeal upheld the sight of scbM'distaen to ehallengF sppliiatitim of general plan amendments m zone changes based on the lick of school facilities, our disuicr has been forced into a deficit mode for several willian dollars for the building of two schools. The amount of fce colkazd in. no way rompcmated for the full amount of mitigation payments considering land toss, building cors, prevailingwages, infrastructure costs, and physical site characteristics_ In a still rapidly growing cuuunuriity a flat $1.72 or $1.84 per squuc foot cap on developer fees could be catastrohic to this district In our experience, the ability to negotiate brought together all of the players (,the developers, the local agencies, and the school district) to consider with all aspects of the situation and deal with them through a reasonable, sensible. and equitable agreement that all parties adhered to. In the current environment where lawmakers an attempting to put scantly more reliance an local funding than on the State for providing school facilities, rt is Magical to totally disregard local co=ol by unilaterally removing options which have been anilable to us. 1130 K Streot, Sutte 270 • SOefameR10, Callfomla 05814. (916) 443-3247 • FAX: (916) 443-3394 Page Z In the interest of being able to sdequateiy house the increasing number of school children who axe entitled to an education in the William S. Hart Union High School District and throushout our State, I urge you to vote 'no' on AB 3174, unless it is amended to develop solutions to address comms of all Putin. Thank you for your consideration of our position. Judith L Larson JLL•ele sea Members, Assembly Appropriations Committee The Honorable James Bnrlte Wm, S. Hut Union fijgh School Dist6=