Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  08-001169

 

MEETING DATE:

05/13/08

to:

Orange County Clerk of the Board

legal entity taking action:

Board of Supervisors

SUBMITTING Agency/Department:

Chair Moorlach  

Department contact person(s):

Mario Mainero (714) 834-3220 

 

 

 

 

CATEGORY: Discussion

 

SUbject:

Deferral of Development Fees

 

 

 

 

 

RECOMMENDED ACTION:

1. Approve the Resolution to defer certain development fees.

 

2. Direct the Director of OC Public Works to provide the Board of Supervisors with quarterly reports on the implementation and use of the fee deferral program authorized by the Resolution.

 

3. Direct the Director of OC Public Works to set an agenda item for not later than May 5, 2009 to consider whether to extend the deferral of the development fees for an additional year, or to allow the fee deferral program to expire.

 

 

SUMMARY/BACKGROUND:

SUMMARY:

 

This is a proposed Resolution to authorize and direct the Director of OC Public Works or his designee to defer collection of certain road, library, park and other development fees that are imposed by the County of Orange as a separate entity from their current due date until the date of issuance of a Certificate of Occupancy for those residential tract projects currently in process.

BACKGROUND INFORMATION:

 

The County of Orange is currently experiencing an economic slowdown, along with much of the rest of the United States. This slowdown has had a significant impact on the building industry in the County.

 

Pursuant to various ordinances, the County of Orange imposes a number of development fees to mitigate the impacts of new development on the County’s infrastructure, including, but not limited to road, library and park fees.

 

Certain development fees can result in a significant cost to builders in a market where sales are sluggish. Builders would realize significant benefits if fees are deferred until the units are ready for occupancy. This would reduce the expenditure of certain fees until those fees are certain to be recovered through the sale of residences.

 

While the deferral of fees may result in a short term cost to the County, all deferred revenues will ultimately be received.

 

Under the proposed Resolution, the Director of OC Public Works or his designee would be authorized and directed to defer collection of those road, library, park and other development fees that are imposed by the County of Orange from their current due date until the date of issuance of a Certificate of Occupancy for those residential tract projects currently in process.

 

Those fees that are imposed by the County pursuant to the requirements of any other governmental agency or to the requirements of any Joint Powers Agreement or other intergovernmental compact shall not be deferred.  Fees imposed for public safety purposes shall not be deferred. The fee amount will be calculated at the time of execution of the agreement using the rates in effect on that date.

 

Under the terms of the Resolution, the fee deferral program shall expire one year from the date of the adoption of the Resolution unless the Board of Supervisors extends or otherwise alters the fee deferral program prior to that time, and one of the Recommended Actions directs the Director of OC Public Works to return the fee deferral program to the Board in one year for a decision on whether to extend the program or allow it to expire, depending upon the economic conditions in the Orange County Building Industry at the time.

 

As a condition of deferral of any such fees, the property owner or lessee of record will be required, as a condition of issuance of a building permit, to execute a contract to pay the deferred fee to the County prior to final inspection or issuance of either a temporary or final certificate of occupancy.  The contract shall be executed before issuance of any building permit, shall be recorded, and shall create a lien for the payment of such deferred fees which shall be enforceable by the County against the owners of the property or their successors in interest. The fee amount will be calculated at the time of payment using the rates in effect on that date.

 

The Director of OC Public Works is to report to the Board of Supervisors on this fee deferral program, and the Recommended Action requires those reports to be made quarterly.

 

 

EXHIBIT(S):

 

 

COUNTY COUNSEL REVIEW: