Title
Planning and Building Department, Planning Division, recommending the Board:
1) Approve the use of a Funding Agreement Template (Attachment B), approved by County Counsel, for the collection of a deposit from applicants processing development projects requiring an Environmental Impact Report; and
2) Adopt and authorize the Chair to sign Resolution 100-2025, authorizing the Director of Planning and Building Department to execute these Funding Agreements, when in a form substantially similar to Attachment B, for the collection of a deposit from project applicants, including any amendments thereto, and administer the deposit accounts, including tracking and refunding any remaining balances.
FUNDING: Applicant Funded - 100%.
Body
DISCUSSION / BACKGROUND
The California Environmental Quality Act (CEQA) allows the County to enter into agreements to prepare environmental documents for a proposed project, including preparation of an Environmental Impact Report (EIR) and a Mitigation Monitoring and Reporting Program (MMRP). Further, CEQA allows the County to collect fees to recover the costs for preparation and processing of these environmental documents.
Currently, the Planning and Building Department, Planning Division, (Department) enters into agreements with consultants for the preparation of environmental documents. Invoices are paid by the County and later reimbursed by the applicant through time and materials monthly billings. The existing process presents a financial risk, as most development projects requiring an EIR involve substantial processing costs, and there is no mechanism in place to safeguard repayment of these costs incurred by the County for staff time or consultant costs.
On April 25, 2025, the Board approved and adopted Ordinance No. 5224 (Ordinance), an Uncodified Ordinance Amending Ordinance 5213, El Dorado County Schedule of Fees and Charges for the Planning and Building Department; included with this Ordinance, a newly required fee to allow the Department to collect a deposit from project applicants with development projects that require an EIR. The deposit amount required is twenty (20) percent of the estimated cost to process the project’s EIR and is collected through a Funding Agreement. The estimated cost to process an EIR is based on the Department’s agreement(s) with consultant(s) for the project.
Once the Funding Agreement is executed, the Department would collect the deposit and place it into the project account in the Planning Project Special Revenue Fund; the account will not bear interest. Meanwhile, the project applicant would continue to pay time and materials invoices on a monthly basis. The deposit would remain untouched in the project account until payment of any and all final Department invoices associated with the EIR following final County action, or withdrawal of the project, or termination of the Funding Agreement. Because EIRs are complex, they often require additional funds and time. As such, the Funding Agreement Template has been designed to only require an amendment and the collection of an additional deposit if the increase in costs is deemed substantial by the Department.
This deposit-collection method has previously been utilized for larger development projects requiring EIRs, though it was not mandatory at the time. Now that the Ordinance formally requires this approach, it is essential that the Department implement an efficient and consistent process to ensure timely application processing and to minimize the risk of delays that could result in increased costs to applicants and the County.
ALTERNATIVES
Because most agreements between the Department and consultants are through Department-issued Task/Work Orders stemming from an as-needed master agreement, the Department does not return to the Board for approval of each Task/Work Order. As such, if the Resolution is not adopted, the Department will be required to take each Funding Agreement to the Board for approval. This presents a delay in the processing and collection of deposits and environmental review, as Board dates are limited and deadlines can be difficult to meet. This may also discourage project applicants from utilizing consultants contracted with the Department, preventing the County from having an oversight role in the processing of environmental documents.
PRIOR BOARD ACTION
February 25, 2025, (Legistar file 25-0211), the Board approved and adopted Ordinance 5224.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel, Chief Administrative Office
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no change to Net County Cost as a result of this item. The deposits will be placed into non-bearing interest accounts.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will secure the Chair’s signature on the original copy of the Resolution; and
2) The Clerk of the Board will provide two (2) certified Resolution copies to the Planning and Building Department, attention Robert Peters, Deputy Director of Planning.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Robert Peters, Deputy Director of Planning
Planning and Building Department