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shall be derived using the following formula: Available School Capacity = School Capacity' — (Enrollment' + Vested') Where ' School Capacity = FISH Capacity including the FISH Capacity of schools programmed for construction in the first three (3) years of the School District Five -Year Facilities Work Program. Enrollment = Student enrollment as counted at the Fall FTE. ' Vested = Students projected to be generated from Residential Developments approved after the implementation of school concurrency where all school impact fees have been paid, plus students projected to be generated from residential building permits issued since implementation of school concurrency for lots that existed prior to implementation of school concurrency where either (1) no certificate of occupancy has been issued or (2) a certificate of occupancy has been issued since the last fall FTE. (b) At the Fall FTE, the vested number of students on the Development Review Table will be reduced by the number of students represented by the residential units that received certificates of occupancy within the previous twelve (12) month period. (c) The County and the Cities shall notify the School District as residential building permits that are exempt are issued and as certificates of occupancy are approved for residences on lots that existed prior to implementation of school concurrency. The County and the Cities shall provide to the School District the address(es) of the aforesaid new residences along with information on the type of residential unit. As the information is obtained from the County and Cities, the School District shall update the vested column of the Development Review Table. 14.5 The Three Year Rule (a) If new School Capacity within a School Service Area will be in place or under actual construction in the first three years of the School District's Five -Year Facilities Work Program, the new School Capacity will be added to the Student Capacity shown for the School Service Area, and the Utilization rate will be adjusted accordingly. 14.6 Adjacent School Service Area Capacity (a) If the projected student growth from a Proposed Residential Development causes the adopted Level of Service Standard to be exceeded in a School Service Area, an Adjacent School Service Area will be reviewed for Available School Capacity. In conducting the adjacency review, the School District shall first use the Adjacent School Service Area with the most Available School Capacity to evaluate projected enrollment and, if necessary, shall continue to the School Service Area with the next most Available School Capacity until all adjacent School Service Areas have been evaluated or until sufficient Available School Capacity has been identified to allow a School Capacity Availability Determination Letter to be issued approving school concurrency. If a SCADL is issued, the SCAM shall note the School Service Areas and their Available School Capacity. (b) If a Proposed Residential Development causes the Level of Service Standard in the School Service Area in which it is proposed to be located to exceed the Adopted Level of Service Standard and if there is sufficient Available School Capacity to accommodate the development in an Adjacent School Service Area, actual development impacts shall be shifted to the contiguous School Service Area having Available School Capacity. This shift shall be accomplished through boundary changes or by assigning future students from the development to the Adjacent School Service Area. F:�Commnity Development\Users\LONG RANGE\CompPlan Amendments\Public Schools0.Updates'JLA\FINAL IRC Interlocal Agreement - January 31, 2008 doe 25