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Agenda Item
ASR
Control 21-000280 |
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MEETING DATE: |
05/11/21 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
OC Public Works
(Approved) |
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Department contact
person(s): |
Kevin Hills (714) 967-0824 |
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Kevin Stephens (714) 967-0806 |
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Subject: Approve OC Public Works OC
Survey Subsidy Reduction Program
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Resolution to Form |
Public Hearing |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 11/14/2017
#30, 10/31/2017 #35, 9/26/2017 #45, 3/10/2015 #24 |
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RECOMMENDED ACTION(S):
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1. |
Find that the subject project is Statutorily Exempt from the provisions of CEQA pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273 of the CEQA Guidelines as the establishment or modification, structuring, restructuring or approval of rates, tolls, fares and other charges by a public agency that are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits, purchasing or leasing supplies, equipment or materials, as set forth herein. |
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2. |
Conduct Public Hearing. |
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3. |
Rescind Board of Supervisors Resolution 17-130 OC Survey Fee Schedule and Board of Supervisors Resolution 17-136 OC Survey Fee Schedule, effective July 12, 2021. |
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4. |
Adopt Resolution updating the OC Survey Fee Schedule for FY 2021-22 and FY 2022-23, find that the revenue resulting from the OC Survey Subsidy Reduction Program will not exceed the estimated reasonable costs to provide the services and that the costs of providing these services are reasonably allocated among the fees established. Fees will be effective on July 12, 2021, for FY 2021-22 and on July 1, 2022, for FY 2022-23. |
SUMMARY:
Adoption of the proposed OC Public Works Survey Fee Schedule for multiple survey services provided to the community will reduce subsidies currently provided by the OC Road and OC Flood funds.
BACKGROUND INFORMATION:
OC Public Works, OC Survey provides chargeable services to the general public, private developers and to public agencies, including the County of Orange (County). The request for approval of an updated fee schedule for OC Survey services is part of OC Public Works’ ongoing effort to implement efficiencies in its current processes, meet County accounting policies and reduce subsidies.
The adopted fee structure includes flat fees and deposits based upon hourly classification rates. The fees are intended to fund the costs associated with Survey Map Checking Services (Services), which include map reviews, land records reviews, filings and recordings. These Services are a requirement of the County Surveyor by California State Government Codes 27550-27564, County resolutions and County policies.
On March 10, 2015, the Board of Supervisors (Board) approved Resolution 15-017 that included revised billing rates for the following Survey classifications: Surveyor I, Surveyor II, Surveyor III and Senior Land Surveyor. On September 26, 2017, the Board approved the fourth Quarterly Budget Augmentation Request Report approving new title codes and descriptions, revisions to the classification specifications and set the pay grades for various Surveyor positions.
Previous Board Policy Direction
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Resolution No. |
Date Adopted |
Summary |
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Resolution 78-946 |
June 20, 1978 |
Directed County agencies and departments to achieve full cost recovery |
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Resolution 93-1399 |
December 14, 1993 |
Established an hourly rate for Survey map checking services |
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Resolution 02-255 |
August 6, 2002 |
Updated Geomatics – Map Check services fees |
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Resolution 03-306 |
September 9, 2003 |
Updated Geomatics – Map Check Fee Schedule |
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Resolution 17-130 |
October 31, 2017 |
Established the OC Survey Fee Schedule for Survey Services |
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Resolution 17-136 |
November 14, 2017 |
Approved current OC Survey Fee Schedule for the current fees for Survey Services |
Overview of Current OC Survey Subsidy
The costs for Services that OC Survey provides are currently subsidized. For FY 2019-20, OC Survey subsidized $2,152,633, which is 78.52 percent of the total actual of $2,741,355 of Services performed. The total FY 2019-20 revenue from Services was $588,722, representing an actual cost recovery of 21.48 percent.
The subsidized amount of $2,152,633 in FY 2019-20 included Services for non-billable Records of Survey and review and filing of Corner Records under unfunded state mandates. Proposed fees would only include a subsidy for Corner Records, which is limited by state mandates.
OC Survey has subsidized the Services costs related to Records of Survey maps filed prior to 2018 to ensure customers had sufficient time to complete Services for maps that were previously non-billable. Beginning January 1, 2022, OC Survey will began billing for Services related to Records of Survey maps filed prior to 2018.
OC Survey will continue to heavily subsidize the Corner Record reviews per Business and Professions Code, Section 8773.2(e). Corner Record review and filing only allows charging the amount required for the recording of a deed with the OC Clerk-Recorder. The OC Clerk-Recorder currently charges flat fees of $7.00 for the first page and $3.00 for each additional page to record a deed. A Corner Record consists of two pages. Therefore, the cost of filing would be the same for recording a two-page deed, currently $10.00 total. This fee will fluctuate to be the same as what the OC County Clerk-Recorder charges for recording a deed.
OC Public Works Subsidy Reduction Program
The OC Public Works Subsidy Reduction Program proposes to address the existing OC Survey fee subsidy via cost reduction through reorganization and efficiencies and revenue.
Cost Reduction/Efficiencies
Organizational structure changes within the Map Check Unit (Unit) will allow for more efficient use of staff time to cover peaks in seasonal workloads. Workload balancing allows the Unit to continue to deliver Services within statutory time requirements by utilizing internal staff and external Map Check Architect-Engineering contractors as demands exceed internal capacity.
Presently, OC Survey tracks all map checking transactions within a custom Land Management System (LMS), which includes the billing/financial aspects of each application. The LMS, which was launched in January 2019, uses a robust cloud-based customer-facing interface system. OC Public Works’ goal with the LMS is to increase overall efficiencies and enhance customer service. The LMS enables OC Survey to track staff time more accurately and process billing.
Revenue
Given that the Services provided are currently subsidized at 78.52 percent, additional revenue is also required. Per County Accounting Policy R-3: Revenue Policy, Requirements and Responsibilities, no fee or service charge may exceed the estimated amount required to provide the Services for which the fee or charge is levied. OC Public Works has conducted a comprehensive fee study that reviewed the current fee schedules relative to actual cost recovery and compared current fees to those of surrounding jurisdictions (Attachment D).
The projected cost for Services in FY 2021-22 is $2,973,307. The projected revenue from Services in FY 2021-22 is $1,306,406 and the subsidy is $1,666,900. The resulting cost recovery is 43.94 percent with a subsidy of 56.06 percent remaining.
A new fee is proposed in order to facilitate requests for Records of Survey research. The proposed fees for Records of Survey research will contribute approximately $37,600 of the projected revenue in FY 2021-22.
In addition, OC Public Works worked with the Building Industry Association of Orange County, the Development Processing Review Committee, the Orange County Chapter of California Land Surveyors Association and other key industry representatives on the proposed fee schedules.
Recommended Fee Adjustments
OC Survey recommends hourly rates based on Human Resource Position Classification hourly rates and incorporation of a 3.65 multiplier. The hourly rates include burden and overhead costs. To be consistent with OC Development Services, OC Survey incorporated this multiplier methodology within the fee study. The purpose of a multiplier is to distribute all applicable departmental costs associated with an employee’s direct chargeable hours. In consideration of the COVID-19 pandemic, OC Survey recommends a moderate fee increase of the 3.65 multiplier phased in over two years. Due to this phased approach, OC Survey will subsidize $189,936 in FY 2021-22. OC Public Works will continue to subsidize Corner Records based on Business and Professions Code, Section 8773.2 (e).
OC Survey will implement billing for Services related to Records of Survey maps filed prior to 2018, effective January 1, 2022.
Compliance with Proposition 26
The proposed OC Survey fees are not a tax as defined by Article XIII C of the California Constitution. Article XIII C provides a specific exemption for “a charge imposed for a specific government service or product provided directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government providing the service or product."
Recommendation Summary
OC Public Works is recommending the Board rescind Resolutions 17-130 and 17-136, which contain the outdated hourly rate, and adopt a new Resolution and the proposed updated fee schedule for OC Survey Services. The proposed schedule is based on current hourly rates that seek to minimize the OC Road and OC Flood subsidies for the Services provided by OC Survey. The new fee schedule will be used to charge for Services performed through both OC Survey and OC Development Services.
Compliance with
CEQA: The subject activity is statutorily exempt from review under CEQA
pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273
of the CEQA Guidelines as the establishment or modification of rates fees and
charges, which are for the purpose of meeting operating expenses, including
employee wage rates and fringe benefits, and purchasing or leasing supplies,
equipment or materials.
FINANCIAL IMPACT:
The increase in revenues will reduce the reliance on OC Road, Fund 115, and OC Flood, Fund 400. Funding sources for ongoing subsidies are OC Road, Fund 115, 22 percent and OC Flood, Fund 400, 78 percent.
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Actual Cost |
Actual
Revenue |
Subsidy Amount |
Subsidy Percentage |
Cost
Recovery Percentage |
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FY 2019-20 Current Rate |
$2,741,355 |
$588,722 |
$2,152,633 |
78.52% |
21.48% |
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FY 2020-21 Current Rate |
$2,937,314 |
$589,155 |
$2,348,159 |
79.94% |
20.06% |
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FY 2021-22 Proposed Fee (first year implementation) |
$2,973,307 |
$1,306,406 |
$1,666,901 |
56.06% |
43.94% |
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FY 2022-23 Proposed Fee (fully implemented) |
$3,024,766 |
$1,520,704 |
$1,504,062 |
49.72% |
50.28% |
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Resolution
Attachment B - OC Survey Fee Program Fee & Deposit Schedule
Attachment C - Fee Study Summary
Attachment D - Fee Comparison to Neighboring Jurisdictions
Attachment E - Fee Checklist for Existing Fees
Attachment F - Fee Checklist Proposed Fees
Attachment G - Public Resources Code 21080(b)(8)
Attachment H - Professional Land Surveyor's Act Code 8773.2 and 8773.2(e)
Attachment I - California Constitutional Provisions
Attachment J - Government Code Section 27550-27564, 66018 and 6062a