| COMPLAINT FILED WITH THE DISTRICT ATTORNEY |
| March 24, 2017
RE: Purchase and Sale of Real Property with the intent to defraud taxpayers living within the Capistrano Unified School District of $23 million dollars. On March 22, 2017 CUSD Trustees approved Resolution No. 1617-56 “Ratification of Agreement to Purchase the Esencia School Site and Delegation to Accept The Deed which stated that CUSD was to purchase 14 acres of land for the Esencia K-8 School Site for $33.86 million dollars ($2.4 million per acre). This land has NO ENTITLEMENTS. The school site is 14 acres of dirt.
The appraisal dated October 24, 2016 appraised the land at $33,860,000.00 A copy of the appraisal with highlighted comments from the Public can be viewed at the following link: http://disclosurecusd.blogspot.com/2017/02/appraisal.html Page 3 of the Appraisal: The appraisal was based on “Highest and Best Use” using a “Sales Comparison Approach”. Page 5 of the Appraisal: The intended use of this appraisal is to estimate market value of the property to ascertain the price of land to be sold for a proposed school facility. Page 6 of the Appraisal: This appraisal report has been prepared in accordance with the Code of Ethics and Standards of Professional Practice (USPAP) of the Appraisal Foundation. The Appraisal has been completed pursuant to requirements as detailed in the “School Facilities and Funding Agreement and Options to Purchase School Site” between Capistrano Unified School District and RMV Community Development, LLC, et al dated October 23, 2013. Page 7 of the Appraisal: “Highest and Best Use” Page 8 of the Appraisal: The Appraisal was performed in accordance with an engagement letter to Capistrano Unified School District dated May 18, 2016 and on Independent Contractor Master Agreement dated August 17, 2016. The appraisal contract assignment was not conditioned on a requested minimum valuation, a specific valuation, or approval of a loan. Page 19 of the Appraisal: Identifies the site as Tract No. 17561 Page 20 of the Appraisal: Subject property is unimproved as of the date of the value [dirt with NO Entitlements]. Page 22 of the Appraisal: Based on discussions with staff members at Rancho Mission Viejo, and based on current market conditions, the company would anticipant that the subject site would accommodate approximately 100 dwelling units. Page 25 of the Appraisal: “Based on my research and analysis, it is my opinion that the Highest and Best Use of the property would be to sell to a bidder for a residential neighborhood completing the existing Esencia community.” Page 27 of the Appraisal: Sales Comparison Approach:
The Appraisal Date is October 2016 and it is using two comps that are not “sold” yet Nos. 1 and 2 (11/16 and 12/16). All public disclosure of the projected cost of the land was an estimated value of the 14 acres at $21 million which is in line with Sale Nos. 3, 4, 5, and 6. Page 32 of the Appraisal: The land was valued at $2,400,000 per acre - $33,860,000
The Appraisal cost CUSD $6,500.00.
The Appraisal was completed in October 2016. Staff did not share the Appraisal with Trustees until the February 22, 2017 Board of Trustees meeting. If Staff had shared the Appraisal with Trustees in October, Trustees would have had sufficient time to question the change in price [from $21 million to $34 million], and request a second appraisal. This appraisal was shared with the Ranch, and was so high, the Ranch did not do it’s own appraisal. Every public disclosure of the proposed cost of the school site showed a projected cost of $21 million dollars ($1.5 million per acre). Sources: The November 6, 2013 Resolution 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 original Agenda Item #10 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 be amended to reflect the cost of the land.
The Item was amended to reflect a cost of $33,860 ($2.4 million per acre). The original Agenda Item Description:
The amended Agenda Item Description:
3) On January 19, 2017, (3 days prior to the February 22, 2017 board meeting), Clark Hampton, Deputy Superintendent of Business and Support Services executed the Agreement for the Purchase and Sale of Escrow Instructions for Planning Area 2 School Site WITHOUT BOARD APPROVAL. Source February 22, 2017 BOT meeting Agenda Item #1 page 3: http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/5783286778959607327.pdf
It also appears that Clark Hampton did so without legal review. The signature page shows that the attorney signed their name with an "X", and a signature that is not legible.
4) Taxpayers had to spend a great deal of time and energy to get answers to questions regarding why the price had changed so dramatically. CUSD and the County of Orange Planning Department put roadblocks up at every point. At the February 22, 2017 Board of Trustees Meeting Agenda Item #10, Trustees were asked to approve RESOLUTION NO. 1617-56, Ratification of Agreement to Purchase the Esencia School Site and Delegation to Accept the Deed. When Staff amended the agenda Item to reflect a cost of $34 million ($2.4 million per acre), the Public asked to see the three (3) appraisals to see why the cost had gone from $21 million ($1.5 million per acre) to $34 million ($2.4 million per acre). Clark Hampton responded that the Appraisal was not discoverable under the Public Records Act until AFTER the land was purchased. The Public attained a Copy of the Appraisal though other means. Public outcry heightened. CUSD announced that it would hear the matter in a Special Board workshop on March 15, 2017. Members of the Public complained that a Board Workshop was NOT the proper venue for this matter because CUSD has a policy of not recording Board Workshops and Board Workshops limit Public in-put. As a result of complaints from the Public, CUSD announced that it would discuss the matter in a Special Closed Session meeting at the February 22, 2017 BOT meeting. The February 22, 2017 Special Board Meeting February 22, 2017 Special Closed Session Board Meeting: http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/5062922547558642149.pdf
THE SPECIAL MEETING WAS CALLED BECAUSE CLARK HAMPTON EXECUTED AN AGREEMENT TO PURCHASE THE ESENCIA SCHOOL SITE FOR $34 MILLION DOLLARS WITHOUT BOARD APPROVAL WHEN ALL PRIOR DISCLOSURES REFLECTED A PRICE OF $21 MILLION. ACTUAL FAIR MARKET VALUE SHOWS THE LAND SHOULD HAVE BEEN PRICED CLOSER TO $11 MILLION. THIS MATTER WILL BE DISCUSSED AT A SPECIAL BOARD MEETING MARCH 15, 2017. Student and Taxpayer Advocate Dawn Urbanek addressed the Board: NOTE: CUSD has cut the beginning of the audio for the Special Closed Session Meeting. Trustee Jim Reardon was not present for this meeting and was suppose to teleconference into the meeting. CUSD staff failed to do that for the Public Comments Portion of this meeting. The board audio starts with Public Comment without any indication as to what Item the comment is for. Board Audio at 0:00: http://cusd.capousd.org/cusdweb/audio2016-17/CUSDBoardMeeting.Feb.22.2017.mp3 at 0:00 The Ranch may have built 1,600 more homes than anticipated in the 2013 ERI. February 22, 2017 Regular Board Meeting February 22, 2014 Regular Board Meeting: http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/5783286778959607327.pdf
Board Audio at 22:21 http://cusd.capousd.org/cusdweb/audio2016-17/CUSDBoardMeeting.Feb.22.2017.mp3 During Superintendent Comments; Superintendent Vital announced that this matter would be heard in a Special Board Meeting (not a workshop), on March 15, 2017 dedicated just to this item. Because it is a Special Board meeting, it will be recorded and it will provide for Public comment. Board Audio at 33:33: http://cusd.capousd.org/cusdweb/audio2016-17/CUSDBoardMeeting.Feb.22.2017.mp3 at 34:49 RMV has sped up its construction timeline and has added 1,600 additional units to Sendero and Esencia. These units are not included in CUSD’s student generation rates, a thousand students may not have a seat at a CUSD school this fall. at 35:03 The Public is trying to get an actual count on how many extra permits have been issued. at 35:22 CUSD has a very serious problem- you have a Staff member that entered into a $34 million dollar contract WITHOUT BOARD APPROVAL. That is cause for termination and I hope Clark Hampton will be fired for cause. at 35:36 Staff has had the Appraisal since October 2016, and CHOSE NOT to share the information withTrustees until the February Board meeting. at 35:45 The Appraisal is defective because it values the land as if 100 homes are built on the property. It is a dirt lot with NO ENTITLEMENTS. at 36:34 Trustee McNicholas states that this Item was pulled by Staff and removed from todays Agenda and will be heard at a Special Board Workshop on March 15, 2017. March 15, 2017 Special Board Meeting March 15, 2017 Board Meeting Agenda Item #1 RESOLUTION NO. 1617-56, Ratification of Agreement to Purchase the Esencia School Site and Delegation to Accept the Deed
Board Agenda: http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/7649589225424779927.pdf Board Audio: http://cusd.capousd.org/cusdweb/audio2016-17/CUSD_BoardAudio_March-15-2017.mp3 Student and Taxpayer Advocate Dawn Urbanek addressed the Board at 5:00pm before Closed Session (I was the only person in the room): at 0:26 I came to remind Trustees that you are elected by the people to represent students and taxpayers in all matters before the Board. Any Trustee who votes to approve this contract knowing that Staff has had the Appraisal since October and did not share it with you; put it on the Consent Calendar without a price, is in breach of their fiduciary duty to taxpayers and students. at 1:36 Overpaying for the land by $24 million dollars and wasting taxpayer money is aggregious. at 1:40 If this was a private sector company, Kristen Vital and Clark Hampton would no longer have their jobs. at 1:50 I hope you take this very seriously and stop wasting taxpayer money because CUSD just cut $6 million from books and supplies to balance its second interim budget. at 2:07 There was suppose to be a second item on the agenda – Contract with AW Industries - $626,450 contract to an individual for inspection services for Esencia K-8 School. I was cut off and admonished for speaking on the AW Industries Contract. at 2:36 Board recessed to closed session at 3:11 Closed session went long Board Workshop regarding Independent PE is pushed until 7:00pm at 5:11 Report Out from Closed Session – Trustees voted 5-0-2 voted to continue this Item to the March 22, 2017 Board Meeting. They did not even do the Presentation for this Item. March 22, 2017 Board Meeting
Board Meeting Agenda: http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/576115885391746174.pdf
Report out from closed session stated that CUSD was going to get two new appraisals. Members of the Public - Dawn Urbanek, Laura Ferguson, Julie Collier and Wendy Shrove thought that this meant that the Resolution would not be approved until after the appraisals were received. However, when the item was actually discussed Trustees ratified the agreement to purchase the land for the price of $33.86 million, and said that the Contract would be amended per an MOU, which was not disclosed to the Public. This is the original agenda listing for the March 22, 2017 Board meeting:
Late Friday night (2 days after the meeting) CUSD amended the listing to this:
The MOU with RMV Community Development, LLC and RMV PA2 Development, LLC Patricia Holloway (Clerk of the Board) was not present at the meeting. President of the Board Trustee McNicholas appointed Kristen Vital as the substitute clerk. Superintendent Vital signed some documents, picked up an overnight bag and walked out of the meeting at 7:56. CUSD did not state on the record that she had left the meeting. A short time after Superintendent Vital’s departure, Trustee Pritchard asked if it was appropriate for Superintendent Vital to be the substitute- it needed to be a Trustee. The meeting continued after a brief discussion. A short after that, Clark Hampton requested that a Trustee “co-sign” the document. Trustee Reardon volunteered. Fast forward to Friday Night March 24, 2016 when the MOU was published on the District web site- The MOU can be viewed here: http://capousd-ca.schoolloop.com/file/1218998819331/1412233173456/3023799210065311109.pdf The Signature page has no Attorneys for CUSD on this document. Kristen Vital signed the document at the meeting as a “Substitute” for Patricia Holloway (Clerk of the Board). Jim Reardon was suppose to “Co-sign”. Who signed this document?
Friday Night March 24, 2017 Taxpayer Advocate Kim Sprague sent Clark Hampton an e-mail asking what this all meant.
The MOU is very troubling especially if CUSD did not have an attorney review the document.
Why does the Developer get to approve the Appraisers?
If the Second Appraisal average differs by less than 10% from the First Appraisal, or if the Second Appraisal Average is greater that the First Appraisal, then no adjustment shall be made to the purchase price? If the Second Appraisal Average is less than 90% of the First Appraisal Average is less than 90% of the First Appraisal (i.e. the second Appraisal Average is less than $30,474,000), then Developer shall refund the difference between the Purchase Price and the Second Appraisal Average, which shall be refunded as follows: (i) 50% to CFD, and SO CUSD pays $34 million for this land and if there is a refund it goes to the CFD and the State? What is going on here? PUBLIC ARGUMENT AGAINST THE APPROVAL OF RESOLUTION NO. 1617-56 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 Members 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 refused to provide the appraisals, and has not made the appraisal available to the Public to date. Members of the Public have obtained a copy of the appraisal; and have studied the appraisal, and have found the following:
The Appraisal with PUBLIC comments can be found at this link: http://disclosurecusd.blogspot.com/2017/02/appraisal.htm The Appraisal was based on "highest and best use” - the Appraiser valued this vacant lot (with NO ENTITLEMENTS) 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 and was done so WITHOUT BOARD APPROVAL and WITH THE INTENT TO DECEIVE THE PUBLIC; AND TRUSTEES, WHO WERE ELECTED TO REPRESENT THE INTERESTS OF TAXPAYERS IN ALL MATTERS BEFORE THE BOARD. 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. Kristen Vital and Clark Hampton are listed as the Agency Negotiators for this purchase. 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. CUSD’s March 15, 2017 Presentation:
THE PUBLIC'S SUPPORTING DOCUMENTATION IN OPPOSITION November 2013 – Land Cost $21 million 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
February 2016 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 at page 28 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?
5) The March 22, 2017 BOT Meeting- Evidence of CUSD’s attempt to defraud the public out of $24 million dollars. This is the original agenda listing for the March 22, 2017 Board meeting:
Late Friday night (2 days after the meeting) CUSD amended the listing to this:
The MOU with RMV Community Development, LLC and RMV PA2 Development, LLC DAMAGES – The Public has been substantially harmed as a result of the Conduct of CUSD. 1) $24 million in taxpayer money is being taken- money that could be used to restore class sizes, restore programs like art, music and science and to fix and maintain facilities. 2) CUSD is 8,555 students over legal capacity (excluding any students from the Ranch).
3) CUSD is giving priority to RMV students over Mello Roos Taxpayers in Ladera Ranch and Talega, who have legal priority at Tesoro and San Juan Hills High School 4) Student generation rates are not accurate. The Ranch has sped up its timeline and has built what the Public believes to be 1,406 more units than initially planned. There could be over 1,000 students that will NOT have seats in CUSD schools for this fall September 2017-18. The Public is trying to verify this number, but the County is not cooperating. 5) The negotiated School Payments are unconscionable. They reduce the fees paid to CUSD simply because a home is on a smaller lot. The Density of the building done in Sendero and Esencia is outrageous. They have 3 story homes (10 to a lot) that will generate as many students as the same home on a larger lot, but CUSD receives ½ the fee to build the school The 2013 Agreement was based on the following: Source: http://capousd.ca.schoolloop.com/file/1229223560406/1218998864154/3709927292726737311.pdf pages 58 - 65.
https://www.facebook.com/search/str/capounified+It'shappening!+On+Wednesday+Capistrano+Unifi ed+Board+of+TRustees/keywords_top   QUICK LINKS TO MORE INFORMATION: 2013 School Facilities Finance Agreement between Rancho Mission Viejo and CUSD November 6, 2013 BOT Meeting Agenda Item #1 page 1 |
| MARCH 22, 2017 BOARD MEETING | |
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Board meeting Agenda page 225 http://capousd-ca.schoolloop.com/file/1218998819331/1455438848279/576115885391746174.pdf Board Audio at 68:16 http://cusd.capousd.org/cusdweb/audio2016-17/CUSD_BoardAudio_March-22-17.mp3
at 68:16 Presentation by Clark Hampton
at 77:56 Staff recommends that Trustees approve the purchase and sale agreement with the understanding that Escrow will close March 27, 2017 and that per an emergency MOU, 2 new appraisals will be done AFTER close of Escrow. at 78:10 PUBLIC COMMENT at 78: 20 Dan Kelly Very happy that the Ranch and CUSD could find a path for continuing forward. Many Esencia residents are looking forward to the opening of their new school. at 78:56 Parker Ware, product of the CUSD school district Home owner Esencia. Purchased their home specifically for the close proximity to the Esencia K-8 school. He wants his children to walk to school. CUSD is the lead agency and announced that the school would be open August 2018. Please approve this land purchase and lets get this school open. at 80:33 Dawn Urbanek, taxpayer advocate
at 83:41 Jeff Gray, Sendero resident, parent Las Flores Very excited about the opening of the school in August 2018. It is very disturbing to be paying Mello Roos and now hear about these delays in the ratification. There is a special culture in Sendero and the culture can change if CUSD does not honor its commitment to build Esencia K-8 by August 2017. at 86:24 Diane Gainer I am very pleased to submit into the record 17 Esencia and Sendero homeowners letters in support of approving this purchase agreement tonight. at 86:54 George Chirswell, homeowner Esencia Community After speaking with Dianne it is my understanding that a MOU has been reached and that the school will be open on time. TRUSTEE COMMENTS at 87:59 Trustee Pritchard I will move the item. Second by Trustee Reardon at 88:25 Trustee Reardon I hope that we can get in front of this and get the MOU on line in the next day or two so that the Public will understand what we have done with this agreement. at 88:42 Superintendent Vital Kristen Ryan Burris will post this hopefully by tomorrow so the Public will have some understanding of this. at 89:07 Trustee McNicholas I appreciate the E-mails it sounds like there was some mis-information out there. The delays were not intentional. We have to be fiscally responsible. We went into this with a $21 million dollar estimate and came out with a cost of $34 million. It will not come out of our general fund it is the Mello Roos taxpayers that will pay this. We do not expect the appraisals to show much of a difference, but we will confirm the price that aligns with the 2013 mitigation agreement. at 90:35 Roll Call The Item passes 6-0-1 (Trustee Holloway absent) |
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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