Section 1859.74.6 - District-Owned Site Cost Benefit AnalysisPursuant to Subdivision (d) of Education Code Section 17072.12, a cost benefit analysis must be made to determine if it is more economical to utilize the existing district-owned site currently used for a non-school function as a school site rather than acquire an alternative site in the district. A determination that it is more economical to use the existing district-owned site as a school site will be made if the current estimated value of the district-owned site as determined in (a)(3) is less than the current estimated value of an alternative site as determined in (b)(5).
(a) Current Estimated Value of District-Owned Site.(1) Determine the value of the district-owned site by a preliminary appraisal or an appraisal made or updated no more than six months prior to submittal of the Approved Application to the OPSC. The appraisal shall include any buildings on the site and shall be made using the guidelines in Section 1859.74.1. The appraised value shall be increased for the following:(A) The relocation expenses that conform to Title 25, California Code of Regulations, Section 6000, et seq. The reasonable and necessary relocation costs for purchasing fixtures and equipment, personal property, new machinery/equipment and the installation of any improvements at the replacement residence or business location may be included as relocation assistance. Do not include relocation expenses applicable to the relocation of district personnel, district buildings/furnishings or district equipment.(B) Four percent of the appraised value determined in (a)(1), but not less than $50,000. This amount shall provide an allowance for appraisals, escrow, survey, site testing, CDE review/approvals and the preparation of the POESA and the PEA.(C) The estimated DTSC costs for review, approval, and oversight of the POESA and the PEA.(2) Determine the estimated current site development cost that would be necessary on the district-owned site if it were to be used as a school site pursuant to Section 1859.76. Estimated cost for demolition of existing buildings on the site may be included as a site development cost.(3) Add the amount determined in (a)(1) to the amount determined in (a)(2).(b) Current Estimated Value of Alternative Site.(1) The district must identify an alternative site within the boundaries of the district that meet all the following:(A) The alternative site is an approvable site by the CDE.(B) The alternative site is located no more than three miles from the district owned site if the project is for a high school, no more than two miles from the district owned site if the project is for a middle school and no more than one mile from the district owned site if the project is for an elementary school.(2) Determine the value of the alternative site selected in (b)(1) by a preliminary appraisal or an appraisal made or updated no more than six months prior to submittal of the Approved Application to the OPSC. The appraisal shall include any buildings on the alternative site and shall be made using the guidelines in Section 1859.74.1. The appraised value shall be increased for the following: (A) The relocation expenses that conform to Title 25, California Code of Regulations, Section 6000, et seq. The reasonable and necessary relocation costs for purchasing fixtures and equipment, personal property, new machinery/equipment and the installation of any improvements at the replacement residence or business location may be included as relocation assistance.(B) Four percent of the appraised value determined in (b)(2), but not less than $50,000. This amount shall provide an allowance for appraisals, escrow, survey, site testing, CDE review/approvals and the preparation of the POESA and the PEA.(C) The estimated DTSC costs for review, approval, and oversight of the POESA and the PEA.(D) The estimated current site development cost that would be necessary on the alternative site if it were to be used as a school site pursuant to Section 1859.76. Estimated cost for demolition of existing buildings on the alternative site may be included as a site development cost.(3) Determine the average appraised value per acre by dividing the appraised value of the alternative site determined in (b)(2) by the number of acres of the alternative site.(4) Multiply the average appraised value per acre of the alternative site determined in (b)(3) by the number of acres of the district-owned site identified in (a).(5) Multiply the quotient determined in (b)(4) by 110 percent.Cal. Code Regs. Tit. 2, § 1859.74.6
1. New section filed 2-6-2003; operative 2-6-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 6). Note: Authority cited: Section 17070.35, Education Code. Reference: Sections 17072.12 and 17251, Education Code.
1. New section filed 2-6-2003; operative 2-6-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 6).