Agenda Item AGENDA STAFF REPORT ASR
Control 23-000876 |
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MEETING
DATE: |
12/19/23 |
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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): |
Nardy
Khan (714) 647-3906 |
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Zac
Henson (714) 834-7452 |
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Subject: Approve Fiscal Year 2022-23
Development Fee Deposit Balance Reports
ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
No
Legal Objection |
Consent
Calendar |
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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: |
Sole Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 12/6/2022 #6, 12/14/2021 #3, 12/8/2020
#8, 12/10/2019 #11 |
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RECOMMENDED
ACTION(S):
1. |
Receive and file the FY 2022-23
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 2022-23 Development Fee Deposit Balance Reports as of June 30, 2023,
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 the State of California 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 10, 2019, December 8, 2020, December 14, 2021, and December
6, 2022, 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 of California (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 2022-23.
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 the construction or reimbursement for construction of the improvements
serving the area to be benefited. After completion of improvements and
reimbursement of advanced money to Fund 115, OC Road, any unused portion of the
fees is refunded to the developer.
The ending balance for developer fees as
of June 30, 2023, is $23,986,360. The ending balance for developer fees held
five years or more is $12,640,409. The ending balance for developer fees held
five years or more includes the projects below:
Future
Construction Projects |
Anticipated Construction Start |
Ending
Balance |
El Toro Road |
FY 2026-27 |
$3,060,490 |
Santiago Canyon Road |
FY 2025-26 |
$6,381,626 |
South County Road Improvement Program
Roadway Improvements |
Various |
$3,198,293 |
Total
Future Construction Project Costs |
|
$12,640,409 |
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
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. Any future action connected to this approval
that constitutes a project will be reviewed for compliance with CEQA.
FINANCIAL
IMPACT:
N/A
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A - Development Fee Deposit Report FY 2022-23
Attachment B - Development Fee Expenditures FY 2022-23
Attachment C - Development Fee Deposits Held More than Five Years FY 2022-23
Attachment D - FY 2022-23 Major Thoroughfares and Bridges Road Fee Program
Attachment E - Government Code Sections 66001(d)(1) and 66006(b)