Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  19-001102

 

MEETING DATE:

12/10/19

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

OC Public Works   (Approved)

Department contact person(s):

Khalid Bazmi (714) 667-3213 

 

 

Nardy Khan (714) 647-3906

 

 

Subject:  FY 2018-19 Development Fee Deposit Balance Reports

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

No Legal Objection

Consent Calendar

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: No

    Current Fiscal Year Revenue: N/A

  Funding Source: N/A

County Audit in last 3 years: No

 

 

    Prior Board Action: 12/4/2018 #11, 12/12/2017 #8, 12/13/2016 #16, 12/8/2015 #15

 

RECOMMENDED ACTION(S):

 

 

1.

Receive and file the FY 2018-19 Development Fee Deposit Balance Reports for OC Public Works.

 

2.

Find that the deposits held more than five years are reasonable in accordance with Government Code Section 66001(d)(1) and are necessary to support future public works improvement projects within the specified fee program.

 

 

SUMMARY:

 

Receiving and filing the OC Public Works FY 2018-19 Development Fee Deposit Balance Reports as of June 30, 2019, and finding that deposits held for more than five years are reasonable and necessary to support future public works improvement projects will support compliance with state requirements and allow completion of future public works projects.

 

 

BACKGROUND INFORMATION:

 

Government Code Section 66006(b) requires a report be made available to the public showing certain information pertaining to the developer fee program, which is to be filed within 180 days from the end of the fiscal year. The Board of Supervisors previously approved similar reports on December 8, 2015, December 13, 2016, December 12, 2017, and December 4, 2018, and found that the deposits held more than five years were reasonable and necessary to support future public works improvement projects. Attachments A and B provide Development Fee Deposit Balance Reports, which satisfy the state requirement and identify the fees, beginning and ending balances, fees collected, interest earned, fees expended and fees refunded/adjusted for each program during FY 2018-19.

 

The developer fees collected pay for new facilities and are imposed as a condition of approving development projects. The developer fee deposit is applied towards the cost of improvements to mitigate impacts associated with the development project and is intended solely for use in that project area. After completion of improvements, any unused portion of the fees is refunded to the developer.  As of June 30, 2019, the ending balance for developer fees was $21,640,284. Of this amount, $2,980,090 has been held five years or more, which includes $1,622,343 for El Toro Road and $1,357,747 for Santiago Canyon Road. Both of these roadways are required to be improved as part of the region's Master Plan of Arterial Highways. Attachment C identifies the fee revenues by program and provides the purpose for the fees.

 

Government Code Section 66001(d)(1) requires a periodic finding demonstrating a reasonable relationship between the fee and the purpose for which it is charged to continue retention of developer fees on hand for more than five years that have not been expended or encumbered. The Development Fee Deposit Five-Year Report identifies the fees held more than five years.

 

State law permits local agencies to adopt the Major Thoroughfare and Bridge Fee Programs and other fee programs to fund public works projects. These programs require developers to construct public works improvements to mitigate the impacts of their projects or pay a fair share fee to finance construction by the County of Orange (County) or other agencies. Fees are collected from developers at the time building permits are issued and retained in deposit accounts until the funding is required to fund improvements. Attachment D summarizes the County Road Fee Programs, identifies how fees are generated for each program and details the current fees per program.

 

Compliance with CEQA: This action is not a project within the meaning of CEQA Guidelines Section 15378 and is therefore not subject to CEQA, since it does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The approval of this agenda item does not commit the County to a definite course of action in regard to a project, since the item concerns a financial accounting of development fee deposits and related findings. This proposed activity is therefore not subject to CEQA.

 

 

FINANCIAL IMPACT:

 

N/A

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A - Development Fee Deposit Report FY 2018-19
Attachment B - Development Fee Expenditures FY 2018-19
Attachment C - Development Fee Deposits Held More than Five Years FY 2018-19
Attachment D - FY 2018-19 Road Fees
Attachment E - Government Code Sections 66001 and 66006