CEAs and HB 7103 Office of Legal Services and Facilities Services - PowerPoint PPT Presentation

CEAs and HB 7103 Office of Legal Services and Facilities Services May 28, 2020 1

Agenda • History of Orange County Approach to School Capacity • HB 7103 and Affect on Current Process • Post HB 7103 Approaches to Growth Management and School Capacity • Status of Current Post HB 7103 Capacity Determinations • Discussion 2

History of Orange County Approach to School Capacity 3

History of Orange County Approach to School Capacity • School Board and Local Government Role in Growth Management • Pre-Martinez Doctrine • Martinez Doctrine • 2004 Orange County Charter Amendment • Interlocal Agreements 4

Roles of School Board and Local Government • The School Board’s Role is to advise Local Government whether capacity exists for new development.* • The Local Government’s Role is to weigh the interests of new development and growth against the School Board’s ability to provide capacity for that development. • These roles are and have been consistent throughout all of the various time periods we will discuss. *New development is unvested residential units at the time of an application to amend the comp plan or rezone the property to a higher density 5

History of Orange County Approach to School Capacity • Pre-Martinez Doctrine • Local Government approved new development with no input from the School Board as to whether capacity exists for the new development. • No mitigation strategy to fund additional required capacity for new development. • Created overcrowded schools and led to Martinez Doctrine. 6

History of Orange County Approach to School Capacity • Martinez Doctrine (2000) • Applied to only Unincorporated Orange County / not municipalities • County took into consideration whether school capacity existed for new development. • Mitigation strategy – Developers paid the actual cost to create capacity at time of approval by funding new schools (individual developers or consortiums) or funding new wings of schools. • Smaller developers argued they were shut out because the mitigation strategy was either too expensive or OCPS could not add individual student stations. 7

History of Orange County Approach to School Capacity • 2004 Orange County Charter Amendment • Applied to Unincorporated Orange County and all Municipalities • Approved by 73.9% of voters in Orange County, reapproved by 65.9% of voters in 2012. • Requires certification by the School Board of whether school capacity exists that school capacity exists at time of approval for the proposed new development. • Introduced the “Joint Approval” process to insure all "Significantly Affected Local Governments" approve new development where the School Board is unable to certify capacity. (Significantly affected local government is currently defined in the Orange County Code as any local government with more than 10% of the student population of an impacted school.) 8

Orange County Charter Amendment (2004) Summary of Charter Provision: County and municipal rezonings and comprehensive-plan (comp plan) amendments that increase residential density shall only be effective upon approval by the governing boards of all significantly affected local governments when: The school district cannot certify to the governing boards of all significantly affected local governments that the impacted school(s) can accommodate the additional students that will result from the increase in residential density. (Significantly affected local government is currently defined in the Orange County Code as any local government with more than 10% of the student population of an impacted school.) 9

History of Orange County Approach to School Capacity • 2004 Orange County Charter Amendment (cont’d.) • Mitigation strategy – Developers pay the actual cost to create capacity at time of approval by funding new schools (individual developers or consortiums) or funding new wings of schools. • Smaller developers argued they were shut out because the mitigation strategy was either too expensive or OCPS could not add individual student stations. 11

History of Orange County Approach to School Capacity • 2008 and 2011 Interlocal Agreements (“ILA”) • Applicable to Orange County and all participating Municipalities • Is a contractual agreement between signatories. • Statutorily mandated for long term school planning and concurrency. Includes homegrown process for interplay between the School Board and Local Governments to review new development and school capacity to comply with the Orange County Charter. 12

History of Orange County Approach to School Capacity • Interlocal Agreements (“ILA”) • Mitigation Strategy: • Capacity Enhancement Process with a fixed, proportional formula for mitigation payment. • Counts capacity available in three years instead of capacity at time of application. • Moved timing of mitigation payment to platting for single family (SF) or site plan for multi- family (MF). • Created certainty for large and small developers alike as the mitigation payment is based on a formula. • Under the Charter and the ILA, in the absence of available capacity within 3 years, the execution of a CEA by OCPS serves as certification of capacity. 13

History of Orange County Approach to School Capacity Interlocal Agreements (“ILA”) – Mitigation Strategy (Cont’d.) • Section 10.7(c) of the Amended & Restated ILA (2011) (c) If the individual school impacted by the proposed Residential Development fails to meet the adopted Level of Service as of the date of the School Capacity Determination, the mitigation required pursuant to the Capacity Enhancement Agreement shall be used to ensure that the overcrowding existing at the time of the submittal of a complete Development Application shall not be aggravated. (Emphasis added) 14

History of Orange County Approach to School Capacity • School Capacity Determination as Defined in ILAs • Available School Capacity = (School Capacity x Adopted Level of Service*) – (October Enrollment + Reserved Capacity) • If the Available School Capacity now - or Available Capacity that will be available within 3 years - is greater than the students generated by “new development”, then the new residential project receives a School Capacity Determination approval letter • If capacity is not available, the applicant had the opportunity to seek to enter into a Capacity Enhancement Agreement (CEA) *LOS for ES is 110%, MS & HS is 100% 15

History of Orange County Approach to School Capacity Example review of 36 unvested units at the Elementary School level. Available School Capacity = (School Capacity x Adopted Level of Service) – (October Enrollment + Reserved Capacity) As there are 125 available seats, and the proposed project generates 7 students, this project PASSES at the Elementary School level. 16

History of Orange County Approach to School Capacity • Capacity Certificate Issued (Mitigation Not Needed • Capacity Determination Workflow Capacity Approval Local Jurisdiction Yes Issued/ No Mitigation Approves or Denies Project Capacity Determination OCPS Determines if Applicant May Seek to Application Submitted Capacity is Available? Enter into CEA No Requires Approval of Applicant May Still Seek All Significantly Joint Approval Affected Local Governments 17

History of Orange County Approach to School Capacity • Section 10.6(a) of the Amended & Restated ILA (2011) (a) The Capital Contribution required shall include a present value calculation of the School Impact Fees anticipated to be due upon permitting of the proposed Residential Units plus any Capacity Enhancement Mitigation required. (emphasis added) • Section 10.7(b) of the Amended & Restated ILA (2011) Capacity Enhancement Mitigation = (Development Impact – Vested Students) – Net School Capacity x Total Cost Total Cost – Developer pays the credit portion of the impact fee for each student station created that, together with the impact fee, pays the full cost of a student station. 18

History of Orange County Approach to School Capacity • Interlocal Agreements (“ILA”) – Mitigation Strategy (Cont’d.) • Impact Fee and Credit Portion of Impact Fee Term Current Total Cost per Student $27,053.00 Revenue Credit per $5,988.00 Student Net Impact per Student $21,065.00 19

History of Orange County Approach to School Capacity • Interlocal Agreements (“ILA”) – Mitigation Strategy (Cont’d.) • What is the Credit Portion of the Impact Fee? • Credit portion of Impact Fee is based on future revenues expected to fund capital projects, such as: • Half Cent Sales Tax • Capital Improvement Tax (Ad valorem tax) • Mitigation Payments Received through the CEA process • Current Credit Portion is $5,988.00 20

History of Orange County Approach to School Capacity • Developer Mitigation Payments – How is it Spent? • Also known as “Capital Contribution” • Can ONLY be spent on new capacity • Paid to OCPS by developers prior to plat/site plan approval through CEA process • Based on the proportionate share cost per student station • Spent directly on the affected school, not districtwide over-crowding • Charged only to developers building in over-crowded school zones 21