RECOMMENDATION(S): (CONT'D)
3. ADOPT the 2022 East Contra Costa County HCP/NCCP Mitigation Fee Audit and Nexus Study, including the findings therein as required by the Mitigation Fee Act.
4. ADOPT Ordinance No. 2023-10 to update mitigation fees imposed to implement the East Contra Costa County Habitat Conservation Plan/Natural Community Conservation Plan.
FISCAL IMPACT:
The adoption of the 2022 East Contra Costa County HCP/NCCP Mitigation Fee Audit and Nexus Study (“2022 Fee Study”) and the proposed fee update will result in the County collecting additional revenues that can be used only for public facilities related to the conservation of covered species, as set forth in the HCP/NCCP and the proposed ordinance. Conservation and Development Department staff time to administer the ordinance will be reimbursed through the Department’s existing process of tracking time spent to review development applications and charging applicants for the cost of the staff time actually spent to review the applications.
BACKGROUND:
Ordinance No. 2023-10 updates mitigation fees imposed to implement the East Contra Costa County Habitat Conservation Plan/Natural Community Conservation Plan (“HCP/NCCP” or “Plan”) based on the attachaed 2022 East Contra Costa County HCP/NCCP Mitigation Fee Audit and Nexus Study (“2022 Fee Study”). The fees are used for the conservation of habitat for covered species in mitigation of the impacts of development in eastern Contra Costa County.
The County originally approved the HCP/NCCP in December 2006. Under the HCP/NCCP, the County and the other participating local agencies were issued state and federal permits for impacts to endangered species and their habitats, also referred to as take permits. This enables the County and the other participating local agencies to control endangered species permitting for activities and projects in the region that they perform or approve. The East Contra Costa County Habitat Conservancy, a joint powers authority composed of the County and the Cities of Brentwood, Clayton, Oakley, and Pittsburg, was formed in February 2007 for the purpose of implementing the HCP/NCCP. Among other responsibilities, the Conservancy conducts periodic fee audits and refers the results to the participating cities and the County.
In October 2007, the County adopted Ordinance No. 2007-53 to originally establish the mitigation fees and procedures to implement the HCP/NCCP within the portion of the unincorporated County covered by the Plan. Two types of mitigation fees were established: the Development Fee (calculated by multiplying the acreage of the site permanently disturbed by development projects subject to the fee by the fee rate applicable in the zone in which the projects are located), and the Wetland Mitigation Fee (applicable to the wetland, aquatic, or riparian portions of a development project). The Conservancy and participating cities each separately adopted the mitigation fees and procedures to implement the HCP/NCCP.
The HCP/NCCP requires automatic annual adjustments to the mitigation fees based on economic indices. The HCP/NCCP also requires periodic audits in years 3, 6, 10, 15, 20, and 25 of the Plan’s implementation. The periodic audits are conducted to assess whether changes in HCP/NCCP implementation costs over time require adjustment of the fees. Per HCP/NCCP requirements, the Conservancy hired an outside, independent financial auditor to conduct a fee analysis. The 2022 Fee Study was prepared to comply with the requirement of a fully funded mitigation strategy that would achieve the goals of the HCP/NCCP. The 2022 Fee Study provides a revised fee schedule based on updated cost data.
Since the initial adoption of the HCP/NCCP mitigation fees in 2007, the County adopted Ordinance No. 2021-25 in 2021 and the HCP/NCCP mitigation fees were updated based on the 2017 East Contra Costa County HCP/NCCP Mitigation Fee Audit and Nexus Study (the delay in adoption was due to pending litigation between the Conservancy and a private third-party).
In February 2023, the Conservancy adopted the 2022 Fee Study and the updated fee schedule based on the 2022 Fee Study. Now, the participating cities and the County need to take action to adopt the 2022 Fee Study and the updated fee schedule. The proposed Ordinance No. 2023-10 updates the mitigation fee schedule to reflect the 2022 Fee Study. The procedures included in the proposed ordinance for implementing the HCP/NCCP are unchanged from those adopted by the County in 2007 and 2021.
Updated 2023 Fee Schedule:
In addition to the periodic fee audit, the mitigation fees are automatically adjusted annually based on the Consumer Price Index (CPI) and the Home Price Index (HPI) using a formula in the HCP/NCCP. The fees calculated in the 2022 Fee Study are for 2022. These have further been updated to reflect the annual adjustments made in March 2023. The updated mitigation fee schedule, calculated as of 2023, is shown in the table below. The table also shows the percent change from the 2023 fee calculated under the current fee schedule compared to the corresponding updated fee.
2023 Mitigation Fee Schedule Based on 2022 Fee Study
| Land Cover |
Fee Basis |
Current 2023 Fee |
Updated 2023
Fee Based
on
2022 Fee Study |
Change
from
Current
2023 Fee |
Development Fee |
|
|
|
| Zone 1 |
per acre |
$19,611.52 |
$19,871.91 |
1.31% |
| Zone 2 |
per acre |
$39,223.04 |
$39,743.83 |
1.31% |
| Zone 3 |
per acre |
$9,805.76 |
$9,935.96 |
1.31% |
| Land Cover |
Fee Basis |
Current 2023 Fee |
Updated 2023
Fee Based
on
2022 Fee Study |
Change
from
Current
2023 Fee |
| Wetland Mitigation Fee |
|
|
|
| Riparian |
per acre |
$110,667.08 |
$111,060.40 |
0.35% |
| Perennial Wetland |
per acre |
$167,718.29 |
$170,908.06 |
1.87% |
| Seasonal Wetland |
per acre |
$392,489.03 |
$401,479.18 |
2.24% |
| Alkali Wetland |
per acre |
$396,778.59 |
$405,871.63 |
2.24% |
| Ponds |
per acre |
$215,976.51 |
$221,421.23 |
2.46% |
| Aquatic (Open Water) |
per acre |
$107,988.87 |
$110,711.14 |
2.46% |
| Slough / Channel |
per acre |
$154,206.78 |
$156,815.09 |
1.66% |
| Streams (<=25 ft. wide) |
per ln ft. |
$569.07 |
$580.00 |
1.88% |
| Streams (>25 ft. wide) |
per ln ft. |
$854.23 |
$869.47 |
1.75% |
The updated Development Fees reflect an approximate 1.31% increase from those currently charged by the County. For the non-stream wetlands, the costs of restoration are slightly higher than the existing fees (between 0.35% and 2.46%). Similarly, the costs of restoration for streams are slightly higher than the existing fees (between 1.75% and 1.88%). The 2022 Fee Study compares current actual costs to the cost assumptions used to calculate current mitigation fee amounts.
CONSEQUENCE OF NEGATIVE ACTION:
The 2022 Fee Study would not be adopted and Ordinance No. 2023-10 would not be adopted, and therefore the mitigation fees imposed to implement the HCP/NCCP would not be updated consistent with the 2022 Fee Study.
CLERK'S ADDENDUM
Speakers: Caller 1.