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 Districtís documents.Electronic recording costs the District and the customer less than the former method of transmitting documents via courier to the Recorderís 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

 

 

 

 

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