Title
Chief Administrative Office recommending the Board order the Auditor-Controller to disburse $1,786,279.67 to the El Dorado Hills County Water District (El Dorado Hills Fire Department) from its Development Impact Mitigation Fee account for attorney and settlement fees.
FUNDING: Development Impact Fees.
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DISCUSSION / BACKGROUND
The California Mitigation Fee Act (Cal. Gov. §66000 et seq.) provides for the establishment of fees to mitigate the impacts of new development on public facilities in order to maintain the established level of service. Individual Special Districts do not have the authority to establish these fees; as a result, the County establishes fees on behalf of the districts. In accordance with the Mitigation Fee Act, these revenues are segregated and deposited into a separate account for each district.
The subject request is to reimburse the District for settlement and attorney's fees paid to resolve the matter of Thomas and Helen Austin v. County of El Dorado, El Dorado Hills County Water District, et al. (El Dorado County Superior Court Case No. PC20150633). A copy of the settlement agreement is included with the District's request and outlined below (Attachment A). The amount paid by the District that is the subject of the current reimbursement request is a proper expense of its Development Impact Mitigation Fee Account due to the "common fund doctrine," pursuant to which a party (in this case, the Austins) who preserves or recovers a fund for the benefit of others in addition to himself may recover his attorney's fees and costs from the fund itself.
Attorney Fees - $1,751,279.67
Settlement Fees - $35,000.00
The County last revised the development impact fees on behalf of the District on December 6, 2022 (Legistar file 22-2032) via Resolution 171-2022.
The County has entered into an agreement with the District, whereby the District agrees to "hold County harmless and defend County and its employees, officers, and agents from any claim, liability, or action" resulting from the County’s calculation, imposition, and collection of impact fees on the District’s behalf.
The Chief Administrative Office recommends the disbursement of funds for the above-described uses because they are consistent with the law, the District and County are currently in compliance with the Mitigation Fee Act, and the indemnity agreement between the District and the County sufficiently protects the County from potential liability related to the disbursement.
ALTERNATIVES
N/A
PRIOR BOARD ACTION
Legistar file 22-2032 - December 6, 2022 - The development impact fees were last revised by the County on the District's behalf via Resolution 171-2022.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
FINANCIAL IMPACT
There is no fiscal impact on the County. Impact mitigation fees are collected by the County on behalf of the district and held in a separate account. The account balance as of September 5, 2025, is $5,025,358.58.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Tara Stout, Principal Management Analyst
Chief Administrative Office