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Mr. Freeman explained that the Gift Agreement has explicit language that states the funds <br />can be used for a broader interpretation of"facilities needs." For instance, is a clock part ora <br />facility? Can you equip a classroom as well as build it? The Gift Agreement says funds can be <br />used for facilities or a facilities driven program. For example, the District may want to build a <br />theater, gymnasium, or foreign languages lab. The developer could say it is not an increase in <br />population that leads to that need. It would certainly enhance the school. The District believes <br />the Gift Agreement ailows the funds to be spent for program-driven facilities. The Agreement <br />explicitly states funds cannot be used for teacher salaries or on-going operating costs. <br /> <br /> Mr. Campbell referred to the assumption that if the City signs the agreement, it gives up <br />control and asked if that were true? <br /> <br /> Mr. Freeman indicated the City will still be informed and the District will continue to <br />come to the City with issues. When SB 50 passed, the City no longer had control of the Gift <br />Agreement. With the Cooperative Fee Agreement, the City would have given up its authority <br />over the agreement to a certain extent when Signature and Standard Pacific finished building. <br />Standard Pacific may or may not be finished building, depending upon the extension of a certain <br />roadway. If the economy stays great and Signature finishes building this year, then its <br />obligations under the agreement are over. The District was trying to lock in what it could. He <br />conceded that under the proposed agreement, the City does not have as much control as it once <br />did, however the City remains involved, is informed of issues and meets with District staff. The <br />City does retain whatever police powers it had before. <br /> <br />Mr. Campbell asked if the City had ever had or exercised control up to this point? <br /> <br /> Mr. Freeman said the Cooperative Fee Agreement would have allowed the Council to <br />impose a moratorium on the Cooperative Fee developers' projects. Council never did that. <br />There was discussion when the shortfall was declared on whether to impose a moratorium if the <br />developers refused to advance funds, but that point was never reached because the choice was <br />made to take another avenue. <br /> <br /> Ms. Michelotti said the City has always been directly and actively involved in the school <br />impact agreements. She asked how SB 50 affected the City's ability to declare a moratorium. <br /> <br /> Mr. Freeman said it did not affect the ability under the 1993 agreement because those <br />terms were grandfathered in. What SB 50 states is that one must assume the statutory fee of <br />$2.05 is adequate mitigation and the explicit intent was to take the power away from cities to do <br />anything. Some feel that is unconstitutional, but a test case has not come before the courts yet. <br />He said the developers would not have come back to the table without the cooperation of the <br />City. Under the Amended Cooperative Fee Agreement, the intent is still to involve the City. In <br />conjunction with the Liaison Committee, the City will be updated every six months, and will <br />continue to be involved. The District cannot plan schools unless it knows what the City is <br />planning and vice versa. <br /> <br /> Ms. Ayala read the list of six original goals for the School District and asked if approving <br />the Amended Cooperative Fee Agreement meant all those goals had been accomplished. <br /> <br />Pleasanton City Council 12 10/02/01 <br />Minutes <br /> <br /> <br />