Public Works Agency
www.santa-ana.org/pw
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