There is a Special Board Meeting to address this issue on March 15, 2017
QUICK LINKS:
CUSDWatch Press Release and Letter to the Public
Agreement for Purchase and Sale and Escrow Instructions (PA2 School Site)
Appraisal - Proposed School Site Rancho Mission Viejo Planning Area 2
Number of Dwelling Units Planning Area 1 Sendero
Number of Dwelling Units Planning Area 2 Esencia
2013 School Facilities Finance Agreement between Rancho Mission Viejo and CUSD November 6, 2013 BOT Meeting Agenda Item #1 page 1
| CUSDWatch - PRESS RELEASE & LETTER TO THE CITIES dated February 26, 2017 |
CUSDWatch - The Public Needs Your HelpAgenda Item #10 RESOLUTION NO. 1617-56, Ratification of Agreement to Purchase the Escencia School Site and Delegation to Accept the Deed. was pulled from the Consent Calendar and will be heard at a Special Board Meeting on March 15, 2017 CUSD Staff is asking Trustees to ratify a resolution to purchase the Esencia K-8 School site (vacant land) for $33.86 million when all documentation prior to the resolution stated that the cost of the land would be $21 million. February 22, 2017 BOT Meeting Agenda at page 252 http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/5783286778959607327.pdf CUSDWatch Detailed Background Information: http://cusdwatch.com/index.php/board-meeting-agendas/february-22-2017-board-of-trustees-meeting/agenda-item-10-resolution-no-1617-56-ratification-of-agreement-to-purchase-the-escencia-school-site-and-delegation-to-accept-the-deed CUSDWatch Appraisal with comments can be found at this link: http://disclosurecusd.blogspot.com/2017/02/appraisal.html The proposed scope and cost of the land for Escencia was always projected to be $21 million for 14 acres - $1.5 million per acre. Agenda Item #10 RESOLUTION to approve the purchase was presented to Trustees and the Public without a Price. Members of the Public Requested that the Agenda Item be amended to reflect the purchase price of the land. The Item was amended by Staff to reflect a Purchase price of $33.86 million - $2.42 million per acre Member of the public requested that Staff make Public the three appraisals that would provide answers as to how the price went from $21 million to $33.86 million The Staff has not made the appraisal available to the Public to date, however members of the Public have obtained a copy of the appraisal; and have studied the appraisal, and have found the following: There is only one Appraisal of this land. The appraisal was requested by CUSD and was completed on October 10, 2016. Staff received the Appraisal October 24, 2016. Trustees received the Appraisal in February in preparation for the February 22, 2017 BOT meeting vote to approve the purchase for $33.86 million. Staff did not provide Trustees with an opportunity to review the proposal prior to this Board Meeting. Staff could not add the Proposal to the February 22, 2017 BOT meeting due to potential Brown Act violations. The Appraisal with PUBLIC comments can be found at this link: http://disclosurecusd.blogspot.com/2017/02/appraisal.html In a nut shell: The Appraisal was based on "highest and best use” - the Appraiser valued this vacant lot as if it had 100 dwelling units on it. The empty lot contains no entitlements, and in fact the Ranch maintained the right to build these 100 homes in other parcels in RMV. on page 27 of the Appraisal it shows that the valuation is based on 6 sales. 4 of the sales closed in 2015 and showed valuations closer to the $21 million dollar figure. 2 Sales closer to the $34 million dollar figure were pending or future sales. The Agreement for Purchase and Sale and Escrow PA2 School Site was executed by Clark Hampton on January 19, 2017 without Board Approval. The Attorney for CUSD signed his name with an X and a scribble which is not identifiable. The People feel that this Agreement was entered into with the intent to defraud the public, and a complaint has been filed with the District Attorney. CUSD added a Special Board Meeting on February 22, 2017 to disclose this Item in Closed Session. The Item lists Kristen Vital and Clark Hampton as the Agency Negotiators for this purchase. Neither Clark Hampton nor Kristen Vital are licensed real-estate brokers and were not qualified to negotiate this deal. Attorney Stan Barankiewicz works for the law firm Orbach, Huff, Suarez and Henderson who are also handling the Conflict of Interest case against Trustee Hatton-Hodson. The Attorney Fees paid to this firm were increased from $100,000 to $300,000 at the February 22, 2017 BOT Meeting. Of Great Concern to the Public is the increasing over capacity of CUSD schools. A March 2016 Capacity study shows that CUSD has 8,555 more students than legal capacity. This “overcapacity” does not include NEW students that will be generated by the Ranch Development The Public has made several requests to the County of Orange Planning Department to ascertain how many actual building permits have been issued in Planning Area PA1 and PA2 and what type of dwelling units is attached to the permit. It is the Publics fear that well over an additional 1,000 (potentially more) students may not have a seat in our Public school system starting in September 2017. The Ranch is currently paying the District to bus it’s residents to Las Flores K-8 and Tesoro High School giving the Ranch students PRIORITY over Mello Roos taxpayers who have paid for San Juan Hills High School and Las Flores, Tesoro and San Juan Hills High School. Mello Roos taxpayers in both Ladera Ranch and Talega need a legal opinion as to who has priority at these schools - without one there students are being told to go to Cappo Valley High School and San Clemente High School even though their money has pays for Las Flores, Tesoro, San Juan Hills and San Clemente and they should have a choice. The original 2013 EIR/Negative Declaration allowed the Ranch to build a maximum number of dwelling units in Planning Areas 1-9 of 14,000. The projected time line was 25 - 30 years. The original 2013 EIR/Negative Declaration called for Esencia K-8 to open September 2017. It is still a dirt lot. The original 2013 EIR maximum allowable units PA1: 351 Single Family 304 Single Family Attached 286 Multi Family 941 Total The original 2013 EIR maximum allowable units PA2: 536 Single Family 691 High Density Single Family 450 Single Family Attached 290 Multi Family 1,967 Total In an addendum the Ranch was given permission to build 264 Affordable housing units (not included in the 14,000 maximum units). Total Units 2013 EIR 3,172 It should be noted that the Ranch timeline for build out has been accelerated and the density of units has increase. The 2015 EIR shows that Maximum Units in Planning Area 2 is 3,291 With all addendum’s the Maximum Dwelling Units permissible in (excluding low income housing) 1,287 Planning Area 3,291 Planning Area Total 4,578 4,578 - 3,172 = 1,406 more homes than CUSD planned seats for. Also of concern is the fact that the student generation rates were suppose to reflect Ladera Ranch. The number used are low because they reflect Orange County as a whole. Also of concern is the fact that the student generation rates were suppose to reflect a certain number of units of age qualifying homes which has been changed and may have school age children living in them The bottom line is that we have 6 months to solve the problem of where to put all of these students. The solutions will not come from CUSD. The Public needs the help of elected leaders to solve this problem that will effect the quality of life of every taxpayer in south Orange County. |
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February 22, 2017 Board of Trustees Meeting Agenda Item #10 the Board is being asked to approve Resolution No 1617-56 which allows CUSD to purchase 14 acres of land in Rancho Mission Viejo to build Esencia K-8 School. The original Agenda Item was posted without stating how much CUSD was paying for the land:
A request was sent to Clark Hampton, Deputy Superintendent, Business and Support Services asking that the Agenda Item reflect the cost of the land.
The November 6, 2013 Resolution referred to in the Agenda Item can be found at the following link on Page 1 of the Agenda: http://capousd.ca.schoolloop.com/file/1229223560406/1218998864154/3709927292726737311.pdf The 2013 Environmental Impact Report presented to the Board on January 28, 2013 stated that the estimated cost of the land was $21 million dollars - $1.5 million dollars per acre. http://capousd.ca.schoolloop.com/file/1229223560406/1218998864154/4378738717313669779.pdf
The 2013 Agreement was based on the following: Source: http://capousd.ca.schoolloop.com/file/1229223560406/1218998864154/3709927292726737311.pdf pages 58 - 65
On February 24 2016, CUSD presented the following Negative Declaration Esencia K-8 School to the Board http://capousd.ca.schoolloop.com/file/1218998819331/1455438848279/2139397955426328885.pdf The original agreement was for 19 Acres of land 4 joint use (15 school acres). The Negative Declaration states that their should be 20 acres of land 4 joint use (16 school acres). The February 22, 2017 Board Resolution is stating that CUSD is purchasing 14 acres of land - 4 joint use which would be a total of 18 acres of land?
The Board Agenda did not contain the appraisals for the land which would show how the price of the land went from $21 million ($1.5 million per acre) to $34 million (2.4 million per acre).
The following is the information that is being provided to the public on the February 22, 2017 Board meeting Agenda Item #10 at page 252 http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/5783286778959607327.pdf
The Agreement (at 77 page document) was executed on January 19, 2017 On page 4 of 77:
The School Facilities funding agreement between CUSD and RMV was approved by the Board on November 6, 2013 Resolution No 1314-25 on page 1 http://capousd.ca.schoolloop.com/file/1229223560406/1218998864154/3709927292726737311.pdf SECTION 8.3 states:
The agreement calls for three appraisals if CUSD does not agree with the first valuation. The Board should not vote to approve this item until the appraisals are made public. They are not included in the Board Agenda so there is no supporting documentation for how the price of the land went from $21 million to $34 million. Some additional discussion points: The Size of the Ranch Development is such that it will be a City of well over 50,000 people when complete. The original EIR dated 2004 approved on 2006 stated that the Rancho Mission Viejo projected 9 development areas with 14,000 dwelling units that would generate 4,288 K-12 students. The build out was projected to take 25 - 30 years. After doing an enrollment and capacity study it was determined that CUSD had no capacity at existing school sites to accommodate ranch students. It was determined that the Ranch would require 5 new schools to accommodate its residents: 3 elementary schools at a capacity of 750 students
In March 2016 a new study painted an even worse picture. In March of 2016 CUSD did a "Residential Development School Fee Justification Study which showed that the CUSD's student enrollment exceeded facilities capacity at all school levels in 2015- 16. at page 6 of the report:
This report clearly shows that CUSD is in violation of Education Code 17071.10(a) with it's 2015-16 enrollment, without including a single new student from the ranch. CUSD is over capacity by 8,555 students without including any Ranch Development. CUSD should NEVER have agreed to be the school District for RMV Development. CUSD has insufficient funds to provide adequate facilities for its existing students. In recent responses to the Grand Jury recommendation for Asbestos abatement discovered in the 1990's; CUSD responded that it would not be able to abate Asbestos issues due to a lack of funds, and asked the Grand Jury to give the District another 20 years to fix the issues. (see: http://cusdwatch.com/index.php/2-uncategorised/123-agenda-item-14-grand-jury-report-and-district-response) for more information.
In addition to a lack of existing capacity in CUSD. The Ranch has not been a fair partner in ensuring that CUSD could fund and build adequate capacity for new students. The EIR's continually state that the maximum number of dwelling units is to be 14,000 built over a 25 - 30 year time frame. However- the Ranch continues to add dwelling units to Areas 1 and 2 which will make it impossible for CUSD to accommodate a number of students that has been grossly underestimated. No new schools have been built, and the latest 2015 EIR shows that the number of dwelling units in planning Areas 1 and 2 has increased substantially. According to the latest EIR Planning Area 1 (Sendero) and Planning Area 2 Escencia of the Ranch Development will be adding 3,987 housing units and there are no schools currently within the Ranch development.
I personally drove to Santa Anna to speak with the County to confirm the number of permitted dwelling units that are in Planning Areas 1 and 2. I am waiting on a response. But it looks like RMV has built 1,417 more units in Area 1 and 2 than originally proposed. To add further concern- Addendum's have allowed the Ranch to add "Affordable Housing Units" that are in addition to the 14,000 unit maximum. ADDENDUM 1 July 26, 2006 http://www.ocplanning.net/civicax/filebank/blobdload.aspx?blobid=46402 Increased the number of dwelling units in Area 1 from 1020 to 1,170
Total Units for Area 1: 1,722 Units Total: Conventional Single Family Detached Dwellings: 165 Sub Area 1.1: 808 total units (219 of those are age qualifying) page 2-16 Sub Area 1.2: 29 total units page 2-16 Sub Area 1.3: Wellness Center for Age Qualifying Residents - in 2011 this property was annexed by San Juan Capistrano and will not be developed Sub Area 1.4: 175 Age Qualifying units + 12 Home based Business dwelling units. Sub Area 1.5: 158 Age Qualifying Units - in 2011 this property was annexed by San Juan Capistrano and will not be developed ADDENDUM 1.1 February 24, 2011 http://www.ocplanning.net/civicax/filebank/blobdload.aspx?blobid=45685 This addendum annexed Plaining Areas 1.3 and 1.5 to the City of San Juan, and it increased the maximum number of units from 1,170 to 1,287 (a 10% increase that was not required to be approved).
Maximum Units in Area 1: 1,287 Sub Area 1.1: 971 (up from 808 total units) 400 (up from 219 of those are age qualifying) page 14 Sub Area 1.2: 16 (down from 29 total units) page 14 Sub Area 1.3: Removed Sub Area 1.4: 300 (up from 175) (100 down from 175 are Age Qualifying units) + 12 Home based Business dwelling units. Sub Area 1.5: Removed ADDENDUM 2 March 27, 2013 http://www.ocplanning.net/civicax/filebank/blobdload.aspx?blobid=45685 This addendum
Maximum Units in Area 1: 3,291 (up from 1,300 on the original EIR) Sub Area 2.1: 850 page 3-5 This will include 850 dwelling units (340 age-qualified units) + 4 acres of affordable housing units Sub Area 2.2: 900 page 3-5 This will include 900 dwelling units (280 age-qualifying units) + 4 acres of affordable housing units Sub Area 2.3: 1,241 page 3-5 This will include 1,241 dwelling units (300 age-qualifying units) + 4 acres of affordable housing units Sub Area 2.4: Urban Activity Center Sub Area 2.5: 300 page 3-5 300 Apartments on 15 acres of the 50 acres
At This point the build out of Planning Areas 1 and 2 total 4578 units which is 33% of the Total Ranch build out. The original ERI projects a total of 4,288 students at build out so it is reasonable to assume there could be 1,415 students in Planning Areas 1 and 2.
ADDENDUM Master Area Plan and Subarea Plans February 2015 http://www.ocplanning.net/civicax/filebank/blobdload.aspx?blobid=45685 |
The Item was amended to reflect a cost of $33,860,000 to purchase 14 acres of land for the school site.
| Agreement for Purchase and Sale and Escrow Instructions (PA2 School Site) |
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On January 19, 2017 Clark Hampton, Deputy Superintendent of Business and Support Services executed an Agreement for the Purchase and Sale of Escrow Instructions for Planning Area 2 School Site. http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/5783286778959607327.pdf page 3 of 77
It appears that Clark Hampton did so without Board approval and without legal review. What attorney signs their name with an "X"? 30 days from January 19, 2017 is Saturday, February 18, 2017 - 4 days before the February 22, 2017 Board Meeting to approve this purchase agreement. The Resolution giving Clark the authority to enter into this agreement has not been executed yet. The contract should be voided because of that alone.
Page 34 Repurchase option:
So if CUSD cannot open the school by June 30, 2018 the Ranch Gets the land and school back- |
| Appraisal of Proposed School Site Rancho Mission Viejo Planning Area 2 |
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This appraisal cost CUSD $6,500.00
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