HomeMy WebLinkAboutItem 12 - Expired Street Work Permit Deposits Public Works Agency
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Item # 12
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
March 4, 2025
TOPIC: Expired Street Work Permit Deposits
AGENDA TITLE
Approve the Transfer of $1,153,976 in Non-Refunded Expired Street Work Permit
Deposits from Deposit Fund to Street Improvement Fund
RECOMMENDED ACTION
Approve an appropriation adjustment authorizing an interfund budgetary transfer from
the City Services Fund to the Residential Street Improvement Fund and appropriate the
same amount for non-building improvements. (Requires five affirmative votes)
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
In 2024, the City’s independent auditor, CliftonLarsonAllen LLP, recommended that
Public Works Agency (PWA) staff perform an analysis of the street work permit deposits
account (No. 05301001) so that the balance will reconcile to supporting documentation.
Staff performed a comprehensive, thorough review and it was determined that several
street work permit deposits dating as far back as 15 years were stale-dated, expired,
and non-refundable. Per language stated on the Permit, the Miscellaneous Cash
Transaction Receipt, Miscellaneous Fee Schedule, and City Guidelines, these deposit
monies at-issue went not refunded because Permittees failed to complete the project
within 12 months. Attempts were made by staff to reach out to Permittee before
expiration. However, once a permit expires, the deposit is qualified to be recognized as
revenue and can be transferred into a non-refundable account, for which the City could,
at its sole convenience, elect to use the monies for street improvements. By way of
contract (i.e. the Permit, the Miscellaneous Cash Transaction Receipt, Miscellaneous
Fee Schedule, and City Guidelines), the Permittee effectively loses ownership over the
deposit at the time of non-compliance.
Staff recommends that these funds be transferred to the Residential Street
Improvement Fund 058. This will allow staff to implement street improvements that will
benefit the public via a separate staff report being presented in tonight’s agenda; staff
recommends allocating these funds toward the Bristol Street Widening Project. Moving
forward, staff will implement a routine review and transfer process. Staff will proactively
Expired Street Work Permit Deposits
March 4, 2025
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track permit status and compliance, and work with the City’s Finance Agency to transfer
non-refunded monies of expired street work permit deposits to the street improvement
fund.
This one-time cleanup will resolve the outstanding issue that was identified by the City’s
independent auditor. Furthermore, the ongoing process improvement will positively
maintain the City’s strong audit performance.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
Expired deposits totaling $1,153,976 will be recognized in the Public Works Street Work
Permit revenue account (05317002-53737). An interfund budgetary transfer expenditure
will be recorded in account (05317021-68000-058) to the Residential Street
Improvement Fund revenue account (05817002-59000-053), and the same amount will
be appropriated to the Residential Street Improvement Fund under improvements other
than buildings (05817660-66220).
EXHIBITS
None.
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency
Approved By: Alvaro Nuñez, City Manager