|
ITEM: |
CONSENT CALENDAR |
||||
|
|
|||||
|
3. |
CONSIDER
APPROVAL OF EXPENDITURE FOR INCREASED COUNTY RECORDING FEES and increased
recording activity |
||||
|
|
|||||
|
Meeting
Date: |
February 22, 2018 |
Budgeted: |
No |
||
|
|
|||||
|
From: |
David J.
Stoldt, |
Program/ |
Recording Fees |
||
|
|
General
Manager |
Line Item No.: |
26-05-781900 |
||
|
|
|||||
|
Prepared
By: |
Stephanie Locke |
Cost
Estimate: |
$50,000 (partially reimbursed) |
||
|
|
|||||
General Counsel Review: N/A |
|||||
Committee Recommendation: The Administrative Committee reviewed this item on February 13, 2018 and recommended approval. |
|||||
|
CEQA Compliance: This action does not constitute a project as
defined by the California Environmental Quality Act Guidelines Section 15378. |
|||||
SUMMARY: On
January 1, 2018, Senate Bill 2 (SB-2) enacted the Building Homes and Jobs Act
to establish permanent, ongoing sources of funding dedicated to affordable
housing development. The Act imposes a fee of $75 to be paid at the time of the
recording of every real estate instrument, paper, or notice required or
permitted by law to be recorded, per each single transaction per single parcel
of real property, not to exceed $225. The Act requires that a county recorder
quarterly send revenues from this fee to the Controller for deposit in the
Building Homes and Jobs Fund. MPWMD was
not informed of the new fee until the first business day of 2018.
The District records an
average of 65 documents each month. On
average, the total recording fee now is approximately $110 per recording, which
includes the new $75 fee. Corporation
Service Company (CSC) electronically records the District’s documents. Electronic recording costs the District and
the customer less than the former method of transmitting documents via courier
to the Recorder’s Office. Approximately
40 percent of the recording fees are reimbursed by the applicant. Recorded documents include deed restrictions
related to access to water records, limitations on use, Well Confirmation of
Exemptions, Water Distribution System permits, and notices of compliance and
removal.
CSC requires immediate
payment at the time a document is recorded.
To facilitate this, the District maintains a deposit account that is regularly
refilled to cover recording costs. During
preparation of the Fiscal Year 2017-2018 budget, staff estimated recordings
based on past activity. However, there
has been a significant increase in the number of permits issued due to the
availability of Malpaso Water. Add to
that the new $75 fee, and the approved budget for document recording ($24,000
for FY 2017-18) is now significantly short.
Staff is seeking
approval of an additional $50,000 for document recording for the remainder of
the fiscal year. This change will be reflected
in the proposed mid-year budget.
RECOMMENDATION: Staff recommends the Administrative Committee
approve an increase in funding to accommodate an increase in the number of deed
restrictions being recorded and the increase in the recording fees due to AB-2.
EXHIBIT
None
U:\staff\Boardpacket\2018\20180222\ConsentClndr\03\Item-3.docx