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Cindy McGovern, President of the School District Board of Trustees, reviewed the two types of agreements. The amendment to the Cooperative Fee Agreement is an agreement that amends an agreement with Signature Properties and Standard Pacific to design and construct Neal Elementary School. It has been signed by Signature and Standard Pacific and approved and signed by the Board. The Gift Agreement is an agreement to cover the cost of the District's portion of the Vineyard Corridor infrastructure for the Neal Elementary School, the expansion of two high schools and for future facility needs attributed to growth. Since January of this year, each of the developers that signed the original Points of Agreement is paying the gift fee of $6.50 per square foot. To date Ponderosa Homes has signed the new Gift Agreement. She believed this new agreement is better than the one signed in 1992 and presented six reasons to support that: 1. The District's attorney has given his opinion that the flat fee agreement signed in 1992 is no longer applicable due to SB 50. 2. The District will continue to collect fees on new construction until build out of the community. The old agreements stopped after the building of Neal Elementary and the improvements to the two high schools. 3. The development community is agreeing to gift dollars to the District over and above the state statutory fee of $2.05 per square foot. 4. The development community has agreed to pay those dollars on up to 7,000 square feet of building space. The old agreements were capped at 5,000 square feet. 5. There are two developers who agree to build an elementary school. 6. Together, these two agreements, over time, will collect millions of additional dollars for school facilities over and above any agreements previously entered into. She said the District still has concerns. Today's economy has had a direct influence on the District's facility plans, although these two agreements will provide the funding needed for the shoxt and long term facility needs. It is the timing of receiving the funds that has changed. The District's funding is fled to residential units being constructed and the current economy has flooded the market with homes for sale. It has decreased the developers' ability to garner construction loans and has caused people to move out of California because they can no longer afford to live here. It will take some time for the state and nation to right itself. She believed these conditions magnify the need for the Board and the City Council to continue working together with the development commtmity. We must continue to work together in a non-adversarial manner to seek options of how to construct the Vineyard Corridor infrastructure. The Board and District staff remain committed to building Neal Elementary and the expansions of our high schools. Mary Frances Callan, Superintendent of the Pleasanton Unified School District, said that under the new rules set by SB 50, it is the opinion of the Board, District staff and legal counsel that these are fine agreements. The District is aware that as the agreements are implemented, the stream of funding may be less than it would like. However, the District is confident that if75- 150 homes are built a year, the revenue will be sufficient to carry out short term plans and plan for the long term. Ms. Dennis referred to the figure of 75-150 homes per year and asked if that was discussed in reviewing the cash flows. Dr. Callan said about 55 building permits had been pulled as of August and the District looked at what would happen if only 75-150 homes were built. The District was concerned that a reduction in the number of homes would keep it fi:om moving forward on the Points of Pleasanton City Council 5 10/02/01 Minutes