Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  23-000876

 

MEETING DATE:

12/19/23

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):

Nardy Khan (714) 647-3906 

 

 

Zac Henson (714) 834-7452

 

 

Subject:  Approve Fiscal Year 2022-23 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:   N/A

    Current Fiscal Year Revenue: N/A

   Funding Source:     N/A

County Audit in last 3 years: No

   Levine Act Review Completed: N/A

 

    Prior Board Action:         12/6/2022 #6, 12/14/2021 #3, 12/8/2020 #8, 12/10/2019 #11

 

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)