To: Board of Supervisors
Department or Agency Name(s): County Administrator’s Office
Staff Name and Phone Number: Terri Wright 565-2431
Vote Requirement: Majority
Supervisorial District(s): First
Title:
Title
Adopt a Resolution Determining that Mayacamas Community Facility District #7 is Not Obligated to Pay any Outstanding Debt and not Authorized to Levy Any Special Tax; Ordering Recordation of An Addendum to the Notice of Special Tax Lien and Cessation of Special Tax for Mayacamas Community Facilities District #7 and Adopt an Ordinance to Dissolve Mayacamas Community Facility District # 7
End
Recommended Action:
Recommended action
A) Adopt a Resolution Determining that Mayacamas Community Facility District #7 is Not Obligated to Pay any Outstanding Debt and not Authorized to Levy Any Special Tax; Ordering Recordation of An Addendum to the Notice of Special Tax Lien and Cessation of Special Tax for Mayacamas Community Facilities District #7
B) Adopt an ordinance to dissolve Mayacamas Community Facilities District #7
(First District)
end
Executive Summary:
This item requests that the Board of Supervisors adopt an ordinance to dissolve Mayacamas Community Facilities District (Mayacamas CFD) #7, which was introduced at the August 17, 2021 Board meeting. This action is necessary to formalize the change in services that resulted from the annexation of this territory with the Sonoma Valley Fire District in 2020. Dissolution of the Mayacamas CFD could not occur at that time, due to a need to pay off outstanding debt for an apparatus lease owned by Mayacamas. The payoff of this apparatus has occurred, and the Sonoma Valley Fire District now wishes to dissolve the Mayacamas CFD. To dissolve the Maycamas CFD, your Board must make the findings in the attached Resolution that the Mayacamas CFD is not obligated to pay any outstanding debt, and that the district has no authorization to levy any special tax, and must also adopt the attached ordinance.
Discussion:
The Mayacamas Community Facilities District #7 (Mayacamas CFD) was approved by voters in 2000 to provide enhanced fire protection services for the territory being served by County Service Area (CSA) 40. The Mayacamas CFD was established under the Mello-Roos Community Facilities Act of 1982, and grants the authority of taxpayers to establish a special tax to provide additional funding to exclusively benefit an area. Approximately 200 parcels were subject to the tax that generated $19,200 in FY 2019-20.
On June 15, 2020, the Sonoma County Local Agency Formation Commission (LAFCO), recorded the Certificate of Completion that detached the Mayacamas Volunteer Fire Company area from CSA 40, and consolidated the territory within the Sonoma Valley Fire District boundary. As a result of the LAFCO annexation proceedings, CSA 40 no longer provides fire protection services to the Mayacamas area, and the Sonoma Valley Fire District wishes to dissolve this territory so the property owners in this district pay an equal amount of taxes throughout their district. The Sonoma Valley Fire District has been providing services to the territory since the annexation was approved by LAFCO. Recognizing that the formal dissolution of the Mayacamas CFD would be delayed until the payoff of the apparatus financed with Mayacamas funds could be finalized, the Sonoma Valley Fire District asked the County to no longer charge the property owners in the territory in anticipation of the formal dissolution. Now that the apparatus lease has been paid off, Sonoma Valley Fire District has requested the Mayacamas CFD be officially dissolved. Your Board may dissolve the existing Mayacamas CFD by adopting an ordinance upon making findings that: (a) the district is not obligated to pay any outstanding debt; and (b) the district has no authorization to levy any special tax. (Cal Gov Code § 53338.5). Upon dissolving the district, Your Board shall cause to be recorded an addendum to the Notice of Special Tax Lien.
Staff recommends that Your Board adopt the resolution determining that Mayacamas CFD is not obligated to pay any outstanding debt and not authorized to levy any special tax; ordering recordation of an addendum to the notice of special tax lien and cessation of special tax and adopt the ordinance to dissolve the Mayacamas CFD.
Prior Board Actions:
August 17 2021 - First reading of ordinance to dissolve Mayacamas Community Facility District # 7
January 26, 2021 - Board authorized the payoff of the Mayacamas apparatus and authorizes the County Administrator to enter into an Asset Transfer Agreement with the Sonoma Valley Fire District.
February 11, 2020 - Board approves a revenue exchange agreement for the annexation of the Mayacamas territory.
Fiscal Summary
Narrative Explanation of Fiscal Impacts:
The dissolution of the Mayacamas CFD removes the authorization to tax the Mayacamas territory. The tax was suspended beginning in FY 2020-21 in anticipation of this district dissolution process.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Resolution of The Board Of Supervisors Of The County Of Sonoma, State Of California, Determining that Mayacamas Community Facility District #7 is Not Obligated to Pay any Outstanding Debt and not Authorized to Levy Any Special Tax And Ordering Recordation of An Addendum to the Notice of Special Tax Lien and Cessation of Special Tax for Mayacamas Community Facilities District #7.
Ordinance of the Board of Supervisors of the County of Sonoma, State Of California, Dissolving Mayacamas Community Facilities District #7
Related Items “On File” with the Clerk of the Board:
Correspondence from Sonoma Valley Fire District requesting dissolution