BOS APPROVES SETTLEMENT OF TRAFFIC IMPACT FEE LITIGATION

Published on October 08, 2025

EL DORADO COUNTY BOARD OF SUPERVISORS APPROVES

SETTLEMENT OF TRAFFIC IMPACT FEE LITIGATION

(PLACERVILLE, CA) – The El Dorado County Board of Supervisors today executed a settlement agreement to resolve the matter of Thomas and Helen Austin v. El Dorado County, which challenged the County’s compliance with the procedural requirements of California’s Mitigation Fee Act. 

Despite being provided proof that all fees were being utilized for the purposes for which they were collected – mitigating the impacts of traffic from new development – the court ordered the County to refund Traffic Impact Fees (TIF) that were collected over an approximately 22-month period in 2015-2016.

Most of the legal issues raised in this case were novel issues that required the courts to interpret the intent behind the Mitigation Fee Act.  While this case was hard fought over the years, the County, through its defense of the case, was able to reduce its fee refund exposure by approximately 50 percent.  Although the County has the option to appeal, the Board determined that ending this nearly decade-long litigation was in the best interests of the County, its residents, and the TIF Program. 

“The County remains disappointed in the outcome of this litigation,” said Supervisor Brian Veerkamp.  “The TIF program enabled and is currently enabling the construction of important transportation infrastructure in the County by ensuring that new development pays its fair share of the cost.”

The TIF program has facilitated the County’s compliance with its voter approved General Plan policies regarding roadway levels of service and infrastructure concurrency. 

“The Austins’ lawsuit and the court’s ruling will affect the County’s ability to meet the General Plan’s goals and to deliver the infrastructure that is critical to the well-being of the County,” added Supervisor Lori Parlin.

Under the terms of the settlement agreement, the total settlement amount is $14,769,601.  Of that amount, $5,219,601 will be used to satisfy the Austins’ attorneys demand for their fees and costs and $50,000 will be paid as a stipend to the Austins, since they are not otherwise eligible for a refund. The amount of $9,500,000 will then be refunded on a prorated basis to eligible property owners in accordance with the Mitigation Fee Act.  All but the stipend to the Austins will be paid from the County’s TIF funds.

Within the next two months, the Board of Supervisors will determine the method by which prorated refunds will be issued, which could include direct payments, a temporary suspension of fee collection, fee credits, a combination of the foregoing, or by any other reasonable means. Once the method of prorated refund is determined, the eligible property owners will be identified, and processing of payments can begin. Depending on the method chosen by the Board, payment processing could take seven months or more to complete.

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