11-121 Schoolhouse Services, Enrollment & Fiscal Impact Analysis, Biltmore Apartments, 20030 Stevens Creek CITY OF AGREEMENT
IV CITY OF CUPERTINO
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N. 10300 Torre Avenue
CUPERTINO j433 Cu4081777 200014 NO.0 ��/7`– �
BY THIS AGREEMEN , •1-•= -nd entered into this 1St day of November, 2011, by and between the CITY OF
CUPERTINO (Hereinafter referred to as CITY)and Schoolhouse Services
Address 2255 Tioqa Drive City Menlo Park Zip 94025 Phone 650.373.7373
(Hereinafter referred as CONTRACTOR), in consideration of their mutual covenants, the parties hereto agree as
follows:
CONTRACTOR shall provide or furnish the following specified services and/or materials: Prepare
Enrollment& Fiscal Impact Analysis for the 20030 Stevens Creek Boulevard, Biltmore Apartments project.
EXHIBITS: The following attached exhibits hereby are made part of this Agreement: EXHIBIT A
TERMS: The services and/or materials furnished under this Agreement shall commence on 11-1-2011
and shall be completed before 12-31-2011.
COMPENSATION: For the full performance of this Agreement, CITY shall pay CONTRACTOR: $11,500.00
GENERAL TERMS AND CONDITIONS
Hold Harmless Contractor agrees to save and hold harmless the City, its officers, agents and employees from any
and all damage and liability due to negligence, errors and omissions, including all costs of defending any claim, caused
by or arising out of the performance of this Agreement. City shall not be liable for acts of Contractor in performing
services described herein.
Insurance Should the City require evidence of insurability, Contractor shall file with City a Certificate of Insurance
before commencing any services under this Agreement. Said Certificate shall be subject to the approval of City's
Director of Administrative Services.
Non-Discrimination No discrimination shall be made in the employment of persons under this Agreement because of
the race, color, national origin, ancestry, religion or sex of such person.
Interest of Contractor It is understood and agreed that this Agreement is not a contract of employment in the sense
that the relationship of master and servant exists between City and undersigned. At all times, Contractor shall be
deemed to be an independent contractor and Contractor is not authorized to bind the City to any contracts or other
obligations in executing this agreement. Contractor certifies that no one who has or will have any financial interest
under this Agreement is an officer or employee of City.
Changes This Agreement shall not be assigned or transferred without the written consent of the City. No changes or
variations of any kind are authorized without the written consent of the City.
CONTRACT CO-ORDINATOR and representative for CITY shall be: ENTERED
NAME Simon Vuonq, Assistant Planner DEPARTMENT COMMUNITY DEVELOPMENT
This Agreement shall become effective upon its execution by CITY, in witness thereof; the parties have executed this
Agreement the day and year first written above.
CONTACT CITY OF CUPERTINO:
By _�( By GARY CHAO .411.-! -/
Y
, � -,, r
Title Title CITY PLAN
Tax ID/Soc. Sec. # q 4 3 '2. 1_ c' as 1
APPROVALS EXPENDITURE DISTRIBUTION
DEPARTMENT HEAD it . �, DATE j _ACCOUNT NUMBER AMOUNT
AARTI SHRIVASTAVA �� / /4' - /'�1 IBS 15118, 110-2211 i $11,500.00
CITY CL / ,, 1ATE i
it /// 7/1/ (9Z(/11P/if
CITY OF CUPERTINO
RECEIPT NUMBER: BS000015118
RECEIVED BY: SIMONV PAYOR: PREG BILTMORE RETAI
TODAY'S DATE: 10/21/11 REGISTER DATE: 10/24/11
TIME: 15 :55
2
REFUNDABLE DEPOSIT/RETAIN 20030 SCB - SCHOOLHOUSE $11,500.00
MISCELLANEOUS FEES 20030 SCB - AI)MIN FEE $1, 150 . 00
TOTAL DUE: $12, 650. 00
CHECK $12, 650.00 REF NUM: CHECK #919410
TENDERED CHANGE
$12, 650.00 $ . 00
EXHIBIT A
PROPOSAL
ENROLLMENT AND FISCAL IMPACT ANALYSIS
20030 STEVENS CREEK BOULEVARD
AND BILTMORE APARTMENTS PROJECT
For:
The City of Cupertino
Submitted by:
SCHOOLHOUSE SERVICES
Economists and Planners
2255 Tioga Drive
Menlo Park,CA 94025
(650)373-73'73 Phone
October 2011
TABLE OF CONTENTS
I. STUDY DESCRIPTION 2
II. ADMINISTRATIVE 5
III. QUALIFICATIONS AND EXPERIENCE 7
Schoolhouse Services 1 October 2011
I. STUDY DESCRIPTION
Situation
The developer of a multi-use project at 20030 Stevens Creek Boulevard, together with an
addition to the Biltmore Apartments, is requesting approval from the City of Cupertino for the
project. The City has determined that an analysis of the fiscal and enrollment impacts of the
proposed project on local schools should be included in the materials available to the City
Council and to the public. Schoolhouse Services is submitting this proposal that describes the
analysis that we would recommend in this situation and our willingness to undertake the study.
Schoolhouse Services is uniquely qualified to undertake such a study. We have prepared over
200 reports for over 120 cities, counties and school districts in California. Our studies have
focused primarily on enrollment forecasts, facility planning, and impact mitigation. In some
situations, the firm has been brought in by a developer to prepare an analysis serving the interests
of both a school district and the developer. More specifically, Schoolhouse Services has
completed several similar analyses for the City of Cupertino.
Scope of Work and Work Plan
Task 1. Estimate Student Generation. The estimation of the number of students generated
by the project(and how that number will change over time) is the key component of the analysis.
We have, and will seek additional, information available from studies prepared by Enrollment
Projection Consultants for the Cupertino Union Elementary and Fremont Union High School
Districts regarding student generation rates(SGRs) from different types of housing.
Task 2. Determine Enrollment Capacities of the Impacted Schools. We will describe the
enrollment capacities of the elementary,junior high and high schools that will house students
from the project.
Task 3. Compare Projected Enrollment with Enrollment Capacities. We will compare the
enrollments for the three grade levels projected in Task 1 with the capacities determined in Task
2, both with and without the proposed project. The information from this task will enable those
interested in the project to evaluate the impact.
Schoolhouse Services 2 October 2011
City of Cupertino Enrollment and Fiscal Impact Analysis
Task 4. Estimate Development Impact Fee Revenue. Pursuant to Education Code Section
17620 (Level 1 fees) and Government Code Section 65995.5 (Level 2 fees)developers must pay
any applicable development fees have been paid before the city or county can issue a building
permit. We will determine which of the two sections apply to the fees levied by Cupertino Union
Elementary and by Fremont Union High School Districts and the fee amounts charged by each
district. Since the fees are levied on a per square foot basis,the total square feet of the project's
homes will be calculated. We will look to the developer for information as to the size of the
proposed units. The fee revenue for each of the school districts will include fee revenue from
both the residential and commercial/industrial components of the project, with credit
incorporated for the floor space removed.
Task 5. Determine the Cost of Additional Capacity. The cost and feasibility of adding
additional capacity to the three schools involved, or to other schools if a district indicates that
needed capacity would be added at another school rather than at a directly impacted school. The
impact fee justification document of each school and other information from staff at the districts
will be a resource.
Task 6. Compare Project Fee Revenue with the Cost of Additional Capacity. The
revenues will be compared to the cost to determine whether the District, if it lacks adequate
capacity, would have adequate revenues to fund the needed capacity.
Task 7. Project Operating Revenues Generated by the Project. The Cupertino Union
School District is a"Revenue Limited"school district. This means that the property tax revenue
will be irrelevant. The State will guarantee per pupil funding up to the amount budgeted each
year by the legislature, filling in the gap between that amount and local property tax revenues.
Conversely, Fremont Union High School District is a"Basic Aid", i.e. not revenue limited and
thus eligible only for minimum state aid. For this district we will estimate the assessed value and
consequent property tax revenues. This will also include the examination of the net fiscal impact
of the conversion of the existing property from commercial use to its mixed residential and
commercial use.
Task 8. Calculate per Student Operating Costs and Compare with Project Revenues. The
operating budgets of the districts will be divided by enrollment to determine per student
operating costs at each school level. These multiplied by the number of students at each school
level will provide an estimate of operating costs. These will be compared with the operating
revenues calculated in Task 7.
Schoolhouse Services 3 October 2011
City of Cupertino Enrollment and Fiscal Impact Analysis
Task 9. Prepare a Written Report. We will prepare a written report setting forth our analysis
and calculations. It will describe our approach and include sufficient detail for the reader to
follow and check on our analysis and calculations.
Task 10. Cumulative Impacts and Corresponding Spreadsheet. Another project, Main
Street Cupertino, is being proposed and may be under consideration by the City in the same time
frame as this project. If it is,the combined impacts of the project will be described. This section
will include spreadsheets and tables showing the combined impacts similar to those shown for
the 20030 Stevens Creek project.
Task 11. Attend a Public Meeting. At the City of Cupertino's request, Mr. Recht will attend
a public meeting and make a presentation and/or be available to answer questions.
Schoolhouse Services 4 October 2011
II. ADMINISTRATIVE
Project Staffing
J. Richard Recht,who has been president of Schoolhouse Services since its inception 17 years
ago,will undertake most of the work on the project. He will be assisted in the research as
appropriate. Mr. Recht has worked on many studies addressing the factors involved in this study,
including the earlier studies of Cupertino projects. He has been a frequent speaker, expert
witness, and author as to the analysis methodologies involved.
Recent Projects and References
City of Cupertino staff is well aware of Schoolhouse capabilities due to our previous work for the
City. If an outside reference is desired, we suggest Dr. Benjamin Picard, the Superintendent of
the Sunnyvale Elementary School District.
Schoolhouse has undertaken many studies for Dr. Picard over more than two decades. One of
these was a joint study for the Sunnyvale District and the City of Sunnyvale. The project was
instigated due to concerns about the impact of rezoning downtown that would result in increased
residential development. The result was a joint City Council/School Board session and an
ongoing program for the planning of school facilities. Mr. Recht was project manager for the
study and personally undertook much of the work.
Reference: Dr. Benjamin Picard,
Associate Superintendent,
Sunnyvale Elementary School District
(408) 522-8200 benjamin.picard @sesd.org
Proposed Project Schedule
We will begin as soon as authorized to do so. If authorized to proceed before November 1, we
would plan on completing the study,together with the Main Street Cupertino project study if it is
also analyzed,by the end of the year. In any case, we would strive to complete the reports in
time to accommodate the City's planned schedule.
Insurance
Schoolhouse Services carries general liability insurance of$2 million and Worker's
Compensation.
Schoolhouse Services 5 October 2011
City of Cupertino Enrollment and Fiscal Impact Analysis
Project Budget
Reviewing the earlier studies, we have concluded that the data gathered for them is now out-of-
date; more research costs will thus be involved than were necessary for the last couple of
Cupertino projects. Also,the analysis must include assessing both residential and non-residential
land uses. Finally,the possibility of focused public attention on the studies involved in the
approval process requires that the research, the analysis, and the report be carefully undertaken
and the documentation include not only conclusions but also the analysis underlying the results.
We have budgeted for a strong research effort and a detailed and comprehensive report, as we
feel that is necessary to provide credibility.
We propose a budget of$13,500 for the study. If the study is undertaken in conjunction with a
study for the Main Street Cupertino project,there would be some economies of scale and the cost
would be $11,500 for each study. (This is the cost for a single proposed set of improvements; if
more than one alternative is to be evaluated, the additional cost for each additional alternative
assessed and evaluated would be $1,500.) The cost will be billed based on the time and materials
costs expended. The figures above are a maximum unless, of course,the scope is changed.
Billing Rates
The billing rates of Mr. Recht and research assistants, which include all costs involved, are as
follows:
Mr. Recht $135.00 per hour
Research assistants $45.00 to$65.00 per hour
Schoolhouse Services 6 October 2011
III. QUALIFICATIONS AND EXPERIENCE
Schoolhouse Services offers the experience and talents of principals long recognized as being at
the forefront of California school facility issues. It serves school districts in the areas of impact
analysis, fee documentation, land use and planning, demographics,the disposal of unused sites,
and related issues.
The goal of Schoolhouse is to have the ability to cover all of the linked needs of comprehensive
enrollment, facility, and financial planning. We prepare enrollment projections that identify the
impact of factors such as new development and the changing characteristics of older
neighborhoods, thereby providing a basis for calculating facility needs and for budget planning.
The analysis of existing facility capacity determines the need for additional capacity. And our
evaluation of alternative means of providing new capacity, including building remodeling and
rehabilitation, allows the district to select an optimal program for accommodating future
enrollment needs. This analysis in turn is the basis for development fee documentation,
including that for the alternative fees authorized by SB 50.
Included in the services provided to client districts are:
Economic/Demographic Forecasts Financial Planning/Fee Documentation
Student Generation Rates(SGRs)in new Development fee documentation
housing when first occupied and after including for alternative fees
several years of occupancy Mitigation negotiation&agreements
SGR changes in existing neighborhoods Mello-Roos district planning
Enrollment cohort rates by housing type Comprehensive financial planning
New development patterns and timing
Impacts of attendance boundary changes
Facility Planning Geographic Information Systems
Capacity analyses/facility usage Mapping current district and school attendance areas
New facility needs analysis Considering future attendance boundary locations
Remodeling&rehabilitation projects Facility needs analysis
Facility master plans Facility needs analysis
Disposal of surplus sites
Schoolhouse Services 7 October 2011
City of Cupertino Enrollment and Fiscal Impact Analysis
Schoolhouse principals have conducted or participated in studies for numerous school districts,
including the following(partial list):
Alameda City School District Live Oak Elementary School District
Alhambra City Elementary School District Los Altos Elementary School District
Alhambra City High School District Los Angeles Unified School District
Alpine Union Elementary School District Lucia Mar Unified School District
Alum Rock Elementary School District Magnolia Elementary School District
Anaheim City Elementary School District Mill Valley Elementary School District
Anaheim Union High School District Milpitas Unified School District
Antioch Unified School District Modesto City Elementary School District
Bellevue Union Elementary School District Morgan Hill Unified School District
Belmont Elementary School District Mt.Diablo Unified School District
Bennett Valley Union Elementary School District Mt.Pleasant Elementary School District
Buellton Union Elementary School District Mt.View-Los Altos Union High School District
Burbank Unified School District Newhall Elementary School District
Cabrillo Unified School District Norwalk-LaMirada Union School District
Campbell Union Elementary School District Novato Unified School District
Carlsbad Unified School District Oak Grove Elementary School District
Castaic Union School District Oakley Elementary School District
Centralia Elementary School District Ontario-Montclair School District
Chaffey Joint Union High School District Petaluma Joint Union High School District
Chico Unified School District Pittsburg Unified School District
Coming Union Elementary School District Poway Unified School District
Coming Union High School District Ramona Unified School District
Corona-Norco Unified School District Redding Elementary School District
Cupertino Union Elementary School District Redwood City Elementary School District
Davis Joint Unified School District Reed Union Elementary School District
Del Mar Unified School District Richmond Elementary School District
Dixon Unified School District Rincon Valley Union Elementary School District
East Side Union High School District Riverside Unified School District
Etiwanda School District Ross Valley School District
Fremont Unified School District San Diego Unified School District
Fremont Union High School District San Francisco Unified School District
Gateway Unified School District San Juan Unified School District
Gorman Elementary School District San Jose Unified School District
Grossmont Union High School District San Leandro Unified School District
Hart-Ransom Union Elementary School District San Lorenzo Unified School District
Hayward Unified School District San Ramon Valley Unified School District
Healdsburg Union School District Santa Cruz City School Districts
Hillsborough City School District Santa Rosa City School Districts
Jamul-Dulzura Union Elementary School District Santee Elementary School District
Jefferson Elementary School District Saugus Union Elementary School District
Jefferson Union High School District Savanna Elementary School District
Laguna Salada Elementary School District Scotts Valley Unified School District
Lagunitas Elementary School District Sonoma Valley Unified School District
La Honda-Pescadero Unified School District Soquel Union Elementary School District
Lake Elsinore School District South San Francisco Unified School District
Lakeside Union Elementary School District Sunnyvale Elementary School District
Larkspur Elementary School District Vallejo City Unified School District
La Mesa-Spring Valley School District Windsor Unified School District
Las Lomitas Elementary School District Wright Elementary School District
Lemon Grove Elementary School District Woodland Joint Unified School District
Moreno Valley Unified School District Yucaipa-Calimesa Joint Unified School District
Schoolhouse Services 8 October 2011
City of Cupertino Enrollment and Fiscal Impact Analysis
J. Richard Recht
WORK EXPERIENCE
Mr. Recht has been an urban economist and planner for more than thirty years. This experience
includes consulting, corporate real estate development, and academic study and teaching. For the
last decade, his work has been primarily planning studies for school districts.
Mr. Recht has participated in numerous planning studies for city, county,regional, state, and
federal agencies as well as for school districts. His responsibilities have included forecasting
business activity, employment, development, population and school enrollment, and the
assessment of the fiscal effects of alternatives.
Mr. Recht's primary interest is in the area of facility planning and financing. He assisted cities in
the adoption of development fees before they were familiar except as utility connection fees, and
he was involved in the development of legislation enabling school districts to levy fees. Mr.
Recht has worked on fee programs covering a wide range of public facilities. His work includes
identification of public facility needs; determination of facility costs; equitable allocations of
these costs among classes of development, as well as that not appropriately attributed to growth;
and justification documents for fee and mitigation programs. Mr. Recht has also been a frequent
speaker on the topic of development fees, including numerous presentations at APA national
conferences.
Specific to school impact fees, Mr. Recht has been the project supervisor of more than 100
school impact fee documentation studies for California school districts. These districts have
ranged from small rural District, such as Corning Union School District in the northern
Sacramento Valley,to the largest urban District in the state, Los Angeles Unified School District,
San Diego Unified School District, and San Francisco Unified School District.
Mr. Recht also has spoken at many CASH and SLI)A conferences regarding school impact fees
in general,the complexities of commercial school fee documentation specifically, and the
impacts of redevelopment on school District.
Mr. Recht has served as an advisor and expert witness for a number of districts whose
documentation has been challenged. In most of these cases involving litigation, he has been
retained to revise the District' fee documentation. Mr. Recht has had extensive experience
testifying in court and before government regulatory commissions.
Formerly, Mr. Recht was a member of the faculty of the School of Business Administration at the
University of California, Berkeley where he taught real estate and urban economics.
Schoolhouse Services 9 October 2011
City of Cupertino Enrollment and Fiscal Impact Analysis
EDUCATION
Requirements complete except for filing of dissertation for Ph.D. in Urban Economics, at the
Department of City and Regional Planning, University of California, Berkeley.
M.C.P. in City and Regional Planning, University of California, Berkeley, 1966.
M. Div. in Social Ethics, Pacific School of Religion, 1961.
B.A. in Mathematics and Physics, Oberlin College, 1957.
PUBLICATIONS
"Rose Bushes Have Thorns," Development Impact Fees: Policy Rationale, Practice, Theory and
Issues, Planners Press, Chicago, Illinois, 1988.
"Inducing the Residential Land Market to Grow Timber in an Antiquated Rural Subdivision," co-
author Arthur C.Nelson,APA Journal, Autumn 1988.
"California Fiscal Dilemma Affects New Development", APA California Planner, January 1980.
"The Assessment of Power Plant Impacts on the Local Economy,"co-author P.A. Greene, 1976.
Economic Practices Manual, Project Director and Principal Author, California State Legislature,
1975.
"So You Want to Limit Growth," Regional Environmental Management, John Wiley & Sons,
Inc.New York,New York, 1975.
Socioeconomic Impacts of Environmental Policies, Project Director and Principal Author, Office
of Planning and Research, State of California, 1973.
Jobs, People, Land: The Bay Area Simulation Study, co-authored with staff of the Center for
Real Estate and Urban Economics, University of California, Berkeley, 1968.
Open Space and the Urban Growth Process: An Economic Evaluation Using A Growth
Allocation Model, co-author Robert J. Harmon, Research Report 31,the Center for Real
Estate and Urban Economics, Institute of Urban and Regional Development, University of
California, Berkeley, 1969.
Schoolhouse Services 10 October 2011