Fees
LAFCO Fee Deposit Schedule
Fee Authority [G.C. Sections 56383]: The Commission may establish a schedule of fees for the costs of proceedings taken pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, including but not limited to all of the following:
- Filing and processing applications filed with the Commission
- Proceedings undertaken by the Commission and any reorganization committee
- Amending a sphere of influence
- Reconsidering a resolution making determinations
Fees as Estimate:
Section 56383(b) provides that fees shall not exceed the estimated reasonable cost of providing the service for which the fee is charged and shall be imposed pursuant to Government Code Section 66016. Section 66016(a) provides that, “no local agency shall levy a new fee or service charge or increase an existing fee or service charge to an amount which exceeds the estimated amount required to provide the service for which the fee or service charge is levied. If, however, the fees or service charge creates revenues in excess of actual cost, those revenues shall be used to reduce the fee or service charge creating the excess.” In effect, any amount collected and kept over the estimated reasonable costs or actual costs of providing the service constitutes a tax and therefore requires voter approval.
It is the intent of LAFCO to provide reasonable estimates of the fees required by the application process. However, the complexity of the process makes it difficult to predict costs with accuracy. No two proposals are exactly the same, thus a fixed amount for a given process may be too much for one proposal and too little for another. Variations in complexity of the application, time needed to obtain required information, landowner and registered voter dissent or assent, community dissent and dispute, need for legal counsel, variation in noticing requirements, response to protests, need for an election, need for terms and conditions, tax assessments and other processes will cause large variations in staff time and other costs needed for one proposal over another apparently similar proposal This can be as much as 100% of costs. Given the large size of the costs of an application process, setting a fee that represents an average cost would penalize one applicant over another and would be in violation of Section 66016.
Given the potential for variability of costs because of the particular circumstances of an application and potential large size of the costs for some proposals (thousands to tens of thousands of dollars) an estimate provided up front with a final accounting at the end of the process provides the fairest means of assessing fees that represents the true cost of a proposal. In the Minimum Deposit Schedule provided below, these numbers represent an effort to provide a reasonable estimate of minimum potential costs for an application and an effort to provide information to the applicant that will assist them in planning for the costs of an application process.
Preliminary Meeting:
LAFCO’s Policy and Procedures requires a preliminary meeting with the Executive Officer and the applicant for purposes of reviewing the proposal and the information and proceedings required for the proposal. The Executive Officer, after the required preliminary meeting with the applicant, will provide an estimate of the potential cost of LAFCO proceedings needed for the application. That estimated amount must be deposited with LAFCO when the application is submitted. If during the course of the proceedings required for the application, additional funds are needed then the applicant will be required to deposit additional funds to LAFCO for that purpose. If at the completion of the process there are excess estimated funds over the actual costs, then those funds will be returned to the applicant. Submittal of an application that is substantially different than that discussed in the preliminary meeting will cause a revision of the estimate.
Charges and Deposit:
LAFCO charges are based upon actual staff time and other expenses attributable to processing applications, reviewing project proposals and researching matters as requested. Such charges may be incurred prior to or without filing of an application with LAFCO. Individuals and agencies who request services, research, or review must provide a deposit toward project expenses. All deposits are subject to increase, should the Executive Officer determine that the magnitude of the project justifies the increase.
All fees are considered to be an estimate and estimated fees received are considered to be a deposit. The estimated deposit is due at the time of application submittal to LAFCO. Final costs will be set, if different than the deposit, after all agency comments and invoices for services have been received. All fee estimates must be paid in full prior to the Certificate of Filing being issued, the environmental review documents being certified, the Resolution of Determination being recorded, or the Final Map being filed with the Board of Equalization, as appropriate.
Other Agency Costs:
In the course of its proceedings LAFCO may be required to pay fees to other agencies for the processing, filing, recording or completing a proposal. LAFCO has no control over these fees. All costs required to be paid to other local, regional, state or federal agencies for purposes of conducting the application proceedings are costs that accrue to the applicant. For example, State Fish and Game requires a fee for review of environmental documents, Board of Equalization requires a fee for the filing of the Final Map, the County Clerk-Recorder requires fees for filing documents, County Elections requires fees for verifying petition signatures, etc.
Certificate of Filing:
No petition or application shall be deemed filed and no Certificate of Filing will be issued until the estimated fees have been deposited with Executive Officer.
Resolution of Determination:
No Resolution of Determination (approval) will be recorded until final fees have been paid, if required.
Commission Counsel Costs:
The cost of legal advice to LAFCO for an application or cost of defense of a LAFCO action or proceeding for an application will be the responsibility of the applicant. Generally, LAFCO will not charge for legal advice that provides general guidance regarding an application. However, when an application proceeding requires specific, focused attention of legal counsel for advice as to the specifics of an application process or proceeding, or defense of a challenge to any proceeding or action of LAFCO or its staff, that cost will be born by the applicant. (Examples of need for legal counsel include but are not limited to the need for counsel attendance at meetings or public hearings for the proposal, response to requests from the Executive Officer or the Commission for legal opinion regarding an application proceeding, response to letters from other attorneys, lawsuit defense, etc.)
This requirement will apply whether the need for legal advice or legal defense is created by the applicant or any other person or agency. The applicant will be required to sign an indemnification agreement before a Certificate of Filing is issued.
Indemnification:
As part of the application, applicant shall agree to defend, indemnify, hold harmless and release the Local Agency Formation Commission of Mendocino County (LAFCO), its Commissioners, Executive Officer, other employees, attorneys or agents from any claim, action or proceeding brought against any of them for any reason, including any failure of action or procedure by the Commission, Executive Officer or staff, and including any effort to attack, set aside, void, or annul, in whole or part, LAFCO’s action in any proceeding for processing the application or approving the proposal or on the environmental process and any environmental documents submitted to support it.
This indemnification obligation shall include but not be limited to costs for legal advice, damages, court costs, expenses, attorney fees and costs, expert witness fees and costs that may be asserted by any person or entity, including the applicant, arising out of, or in connection with, the application.
Environmental Review Costs:
Environmental review costs will apply according to several variables. If LAFCO is the Responsible Agency then review and comment to environmental documents created by the Lead Agency are part of the application process and fee, provided that the applicant provides the requisite number of copies to LAFCO. If LAFCO is the Lead Agency all costs of the environmental review process will be assessed to the applicant. When LAFCO is the Lead Agency, the Executive Officer may choose to hire a consultant for developing the environmental review or may choose to conduct the review in-house. The Executive Officer will provide an estimate of the cost of environmental review; different application proposals will cause different estimates based on the anticipated complexity of the review. The estimated amount provided below is for anticipated costs for the least complex proposals. That estimated amount must be deposited with LAFCO before the review will begin. If during the course of the environmental review, additional funds are needed then the applicant will be required to deposit moneys to LAFCO for that purpose. Any funds remaining after the environmental review is completed will be returned to the applicant.
Staff/Consultant Costs:
The estimate for most proceedings includes the anticipated cost for Executive Officer management of general and specialized processes. The actual conduction of specialized processes such as special studies, reorganization studies, service reviews or environmental review may or may not be accomplished by staff. Depending on the circumstances of the application, the Executive Officer has the option of hiring consultants for these processes or having the process completed by staff in-house.
Generally, using outside consultants will be more costly then using staff and therefore to the degree that it is feasible staff will be used. If these studies are conducted in-house, the applicant will be charged the hourly cost of staff. However, certain processes such the need for an EIR or service reviews of a services, such as sewer and water, that are provided by multiple agencies in the same geographical area will need more extensive study or expertise then that available in-house. If the scope of a project requires that outside consulting or other needed services be obtained, applicants will be responsible for the entire cost of recruitment, source selection, and payment for such outside services. Applicants are responsible for paying actual costs for any services obtained through contract, even if such costs exceed the charge-out rate of staff providing similar services.
Sphere of Influence Determination/Service Review Costs:
By law, LAFCO is required to determine, review and update the Spheres of Influence of each agency and perform a Service Review of the agency and the services they provide, once every five years. The cost of this process is to be born by the reviewed agency(s). LAFCO will make every effort to hold these costs to a minimum. The degree of cooperation and effort received from the agency(s) to be reviewed will greatly affect the final costs of the process. LAFCO may choose to hire outside consultants or perform the work in-house using existing or hired staff, as it considers appropriate. An estimate will be provided based on the circumstances of the application and the agency or area being reviewed.
Waivers:
The Commission may waive fees that are to be accrued to LAFCO according to its written policies.
Concurrent Processing:
In most cases applying for multiple proceedings at the same time will reduce the overall cost of any one process due to the efficiency of scale provided by similarity of information needs for each proceeding and the ability to combine CEQA review, noticing, public hearing and conducting authority proceedings. Example: an annexation, sphere of influence amendment, sphere of influence update and service review could be accomplished for a significant amount less than the individual costs of each proceeding.
Billing Procedure:
LAFCO will provide invoices to the applicant that will detail tasks, hours, staff charge-out rates, staff members responsible for work, and/or costs of contracted services. Invoices will also reflect the remaining balance of the initial deposit. Should the deposit be depleted, all staff work will cease until the deposit on file has been replenished. Projects with delinquent balances will not be scheduled for hearing, and the Commission will consider applicants to have waived any and all statutory deadlines.
Minimum Deposit Fee Schedule
The following minimum deposit fee schedule is considered a general guide to the potential costs of an application. The specific needs and circumstances of an application could substantially change these amounts.
Agendas:
$10.00 per year
Annexations:
Minimum deposit of $1,500.00 plus other agency costs plus the following:
0 - 10 Acres $500.00
11 – 20 Acres $750.00
21 – 35 Acres $1,000.00
36 – 50 Acres $1,500.00
Over 50 Acres $2,500.00
Consolidation of Districts:
Minimum deposit of $5,000.00 plus $2,500.00 per Agency plus other agency costs plus CEQA costs
Copy Fee:
$.10 per copy
Detachments:
Minimum deposit of $1,500.00, plus other agency costs plus the following:
0 - 10 Acres $500.00
11 – 20 Acres $750.00
21 – 35 Acres $1,000.00
36 – 50 Acres $1,500.00
Over 50 Acres $2,500.00
Dissolution of a District:
Minimum deposit of $5,000.00 plus other agency costs and CEQA costs
Environmental Review (CEQA):
Exemptions:
Minimum deposit of $500.00
Negative Declaration:
Minimum deposit of $5,000.00
EIR:
Minimum deposit of $25,000.00
Executive Officer Hourly Rates:
Executive Officer hourly rates for managing and conducting the application process are included in the estimates for the various described processes. The rate is computed at $75.00 per hour.
Formation of a District:
Minimum deposit of $5,000.00 plus other Agency costs and CEQA costs
General Information:
General information, information as to requirements of process and law, LAFCO’s policy and procedures or other LAFCO related functions will be provided at no direct charge to individual or agency. Note: This is not legal advice but information as to process.
Incorporations:
Minimum deposit of $10,000.00 plus other Agency costs plus CEQA
Indemnification:
Direct costs.
Latent Powers:
Minimum deposit of $1,500.00 plus agency costs plus CEQA costs.
Legal Counsel Fees:
Direct costs of counsel. Attempts will be made to receive an estimate from counsel before review occurs.
Other Agency Costs:
In the course of its proceedings LAFCO may be required to pay other agency costs for the proposal. The applicant is required to pay those costs as a direct cost pass through. Larger known costs for other agencies include but may not be limited to:
Fish and Game Fees:
Negative Declaration: $1,250.00
EIR: $850.00
Board of Equalization Fees/Single Area Transaction
Less than 1 acre $300.001-5 $350.00
6-10 $500.00
11-20 $800.00
21-50 $1,200.00
51-100 $1,500.00
101-500 $2,000.00
501-1,000 2,500.00
1,001-2,000 $3,000.00
2,001 and above $$3,500.00
The following transactions may supersede or combine with the single area transaction fee schedule:
Deferral of Fees $35.00
Additional County/transaction $300.00
Consolidation per district/zone $300.00
Entire district transaction $300.00
Coterminous transaction $300.00
Dissolution or Name Change $0.00
Note: These fees are subject to change whenever the state makes a change in its fee structure.
Out of Agency Service:
Minimum deposit of 50% of the cost of an Agreement:annexation, plus agency costs plus CEQA
Petition:
Minimum deposit of $150.00 plus cost of County Elections verifying signature. Once Certificate of Sufficiency is issued by Executive Officer other fees for the proposal are due.
Preliminary Application
Mandatory requirement of LAFCO—no charge
Conference:
Unless time required exceeds 5 hours then $75.00 per hours after that.
Merger:
Merger means the extinguishment, termination, and cessations of the existence of a district of limited powers by the merger of that district with a city. Minimum deposit of $5,000 plus other agency fees plus CEQA
Notices:
Included in estimate of fees for proposal; includes newspaper, website, affected, interested, and subject agencies, registered voter and landowner noticing, etc. as required by the nature of the proposal.
Reconsideration:
Minimum deposit of $500.00 plus noticing costs, plus other agency costs
Reorganization:
Reorganization means two or more changes of organization in a single proposal. Estimate would include combined cost of the types of changes sought, e.g. one detachment and one annexation.
Reorganization Committee:
Government Code Sections 56826-56849 provides the legal authority to reorganize districts using a Reorganization Committee utilizing members from the affected districts and the public. This process information, noticing, public hearings, CEQA, etc. The cost for this process will need to be requires staffing, conduction of studies, gathering of funded by the respective agencies and LAFCO. Estimates for the cost will be provided by the Executive Officer once the decision to proceed is made.
Service Review:
Estimate will vary according to whether it is the initial review, comprehensive review or limited review, the number and types of agencies and services under review, and the degree of assistance from agencies,whether consultants are used or in-house staff, plus agency cost, plus CEQA costs. Minimum estimate is $5,000.00
Sphere of Influence Amendment:
Estimate will vary according to the size of the amendment—minimum estimate is $3,000.00
Sphere of Influence Updates:
Estimate will vary according to circumstances of agency and whether it is done in conjunction with a service review and whether an amendment is included. Generally service reviews and sphere updates can be done for the same costs.
Agreement:
I certify that I have reviewed the above information, the LAFCO minimum deposit fee schedule, the State Board of Equalization fee schedule and the State Fish and Game fee requirements. I agree, as project applicant or authorized representative, to pay LAFCO of Mendocino County for all staff services, materials, and other charges attributable to my application or request for services. I understand that services may be required before LAFCO receives formal application, and I agree to pay for such services whenever incurred and regardless of whether a formal application is withdrawn, denied, or otherwise terminated prior to completion.
I understand that if the cost of services exceeds the deposit on file, staff work on my project will cease, and my project will not be scheduled for hearing until additional funds are provided. I agree to remit the applicable State Board of Equalization and State Fish and Game fees when required. I agree to pay all charges within 30 days of receipt of invoice or in any case prior to the filing of the Certificate of Completion for the project.
Name of Agency or Applicant_______________________________________________
Address ________________________________________________________________
Printed Name of Agency President, Mayor or Agent*:____________________________
________________________________________________________________________
Signature of Agency President, Mayor or Agent*:________________________________
________________________________________________________________________
Date of Signature _________________________________________________________
Printed Name of Manager of Agency _________________________________________
Signature of Manager of Agency _____________________________________________
Date of Signature _________________________________________________________
* If signed by agent of landowner or corporation proof of authority to sign agreement must also be provided.