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February 10, 2019 I Volume 13 I Issue 3 <br />Affirming the trial court's opinion, the Court of <br />Appeal, Sixth District, California concluded that <br />CUSD's fee study failed to "contain the data re- <br />quired to properly calculate a development fee." <br />The Court of Appeal explained that, in California, <br />statutory law authorizes a school district to levy a <br />fee against new residential construction for the <br />purposes of funding the construction or reconstruc- <br />tion of school facilities. (See Ed. Code § 17620, <br />subd. (a)(1).) The court also explained that, as set by <br />prior court precedent, fee studies must satisfy a <br />three -factor test: (1) There "must be a projection of <br />the total amount of new housing expected to be built <br />within the District" (since the fee is to be assessed <br />per square foot of development); (2) "[T]he District <br />[must] determine approximately how many students <br />Contributors <br />Corey E. 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If, you require legal <br />or other expert advice, you should seek the services of a <br />competent attorney or other professional. <br />Zoning Bulletin is published and copyrighted by Thomson <br />Reuters, 610 Opperman Drive, P.O. Box 64526, St. Paul, <br />MN 55164-0526. For subscription information: call (800) <br />229-2084, or write to West, Credit Order Processing, 620 <br />Opperman Drive, PO Box 64833, St. Paul, MN 55164-9753. <br />POSTMASTER: Send address changes to Zoning Bulletin, <br />610 Opperman Drive, P.O. Box 64526, St. Paul, MN <br />55164-0526. <br />•..,,.. THOMSON REUTERS° <br />610 Opperman Drive <br />P.O. Box 64526 <br />St. Paul, MN 55164-0526 <br />1-800-229-2084 <br />email: west.customerservice@thomsonreuters.com <br />ISSN 0514-7905 <br />v2019 Thomson Reuters <br />All Rights Reserved <br />QuinlanTM is a Thomson Reuters brand <br />Zoning Bulletin <br />will be generated by the new housing" (in order to <br />measure the extent of the burden imposed on schools <br />by the new development); and (3) "[T]he District <br />must estimate what it will cost to provide the neces- <br />sary school facilities for that approximate number of <br />students." The court explained that since the process <br />involves projections, figures need not be exact, but <br />must show a "requisite connection between the <br />amount of the fee imposed and the burden created." <br />"[F]acilities fees are justified only to the extent that <br />they are limited to the cost of increased services <br />made necessary by virtue of the development," said <br />the court. <br />Here, the court found that CUSD failed to satisfy <br />the three -factor test in that its fee study: (1) failed to <br />project the "total amount of new housing expected <br />to be built within the District," but instead projected <br />a "vague and unrestricted figure" that provided "no <br />guidance" for CUSD to determine whether new <br />school facilities were needed due to anticipated <br />development; (2) failed to "realistic[ally] estimate <br />how may students would be generated by new <br />development"; and (3) was unable to estimate the <br />cost to provide necessary school facilities because it <br />was unable to identify facilities needed to satisfy <br />quantified needs, since the needs could not be quan- <br />tified without quantification of the amount of new <br />development or amount of new students. <br />The court concluded that CUSD's decision to en- <br />act a development fee in this case was invalid <br />because CUSD "did not decide that its enrollment <br />increases would necessitate the construction of new <br />schools but nevertheless based the amount of the <br />development fee on the cost of building new <br />schools." The court found that this "discontinuity" <br />precluded the CUSD "from being able to demon- <br />strate a reasonable relationship between the impact <br />of new development and the development fee," as <br />required. <br />CUSD argued that even if it failed to satisfy the <br />three -factor fee test, the fee imposed against Sum- <br />merHill was valid because CUSD "applied an `alter- <br />native' `reasonable methodology' that was sufficient <br />to support the fee." CUSD maintained that because <br />its enrollment already exceeded its capacity "every <br />single additional student generated by new develop- <br />ment [would] result in a financial impact on the <br />District." The court accepted the validity of that <br />statement, but concluded that it failed to satisfy the <br />statutory requirement that CUSD demonstrate "a re- <br />lationship between the amount of the fee and impact• <br />of development on the need for new or reconstructed <br />school facilities." Here, found the court, "the fee <br />study's use of hypothetical new schools that CUSD <br />2 © 2019 Thomson Reuters <br />