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HEARING - The Board is asked to consider a request from the El Dorado Hills Water District ("District") to adopt and authorize the Chair to sign Resolution 174-2020 revising development impact mitigation fees for the El Dorado Hills Fire Department.
FUNDING: N/A
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DISCUSSION / BACKGROUND
The California Mitigation Fee Act (Cal. Gov. Code §§ 66000-66025) provides for the establishment of fees on new development for the purpose of mitigating the effects of development on existing public facilities. Special districts do not have statutory authority to impose these fees. As a result, the Board of Supervisors has passed an ordinance providing for the establishment of such fees on behalf of special districts. The ordinance was codified as Chapter 13.20.
Development impact mitigation fees were first collected on the District's behalf in 1985. The current fees are based on a Fee Nexus Study and Report (Resolution 041-2018, Legistar File 18-0232) (“Report”) detailing the legal and policy basis justifying the development impact mitigation fee within the District.
The Report includes a recommendation for an annual inflationary adjustment based on the percentage change in the appropriate engineering cost index as published by the Engineering News-Record for the preceding twelve months. Resolution 041-2018 did not include a provision for automatic annual inflationary adjustments to the fee because any increase to the fee must be made by resolution of the Board of Supervisors at a noticed public hearing, pursuant to the Mitigation Fee Act. The District's last inflationary adjustment was in 2020, by adoption of Resolution 093-2020, increasing fees by 2.518%, based on the change in the Construction Cost Index for San Francisco from July 2018 through June 2019, as published in the Engineering News-Record.
In August 2020, the District adopted Resolution No. 2020-13, adopting an increase to the fees of 5.409%, based on the change in the Construction Cost Index f...
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