Legislation Details

File #: 2022-1342   
Type: Consent Calendar Item Status: Passed
File created: 11/10/2022 In control: Auditor-Controller-Treasurer-Tax Collector
On agenda: 2/28/2023 Final action: 2/28/2023
Title: Eighth Street East Sewer Assessment District Closeout
Department or Agency Name(s): Auditor-Controller-Treasurer-Tax Collector, Sonoma County Water Agency
Attachments: 1. Summary Report, 2. Resolution

To: Board of Directors of the Sonoma Valley County Sanitation District

Department or Agency Name(s): Auditor-Controller-Treasurer-Tax Collector; Sonoma County Water Agency

Staff Name and Phone Number: Erick Roeser - ACTTC 565-3285; Lynne Rosselli - SCWA 524-3771

Vote Requirement: Majority

Supervisorial District(s): First

 

Title:

Title

Eighth Street East Sewer Assessment District Closeout

End

 

Recommended Action:

Recommended action

Adopt Resolution declaring remaining fund balances as surplus and ordering disposition of surplus amounts; approving District Closeout Analysis Report prepared by NBS; and accepting Notice of Completion of Public Improvements. (First District)

end

 

Executive Summary:

Post retirement of the Eighth Street East Sewer Assessment District Limited Obligation Improvement Bonds in September of 2016, it has been determined that surplus funds remain in the associated Special Reserve and Redemption Funds.  The Sonoma Valley County Sanitation District in partnership with Auditor-Controller-Treasurer-Tax Collector commissioned NBS in fall of 2022 to review and prepare a District Closeout Analysis Report to recommend the appropriate disposition methods for these funds.  At this time, Board of Directors approval is requested to approve the District Closeout Analysis Report and direction to proceed with steps necessary to disburse the surplus funds to the impacted property owners.

 

Discussion:

The Sonoma Valley County Sanitation District (District) formed the Eighth Street East Sewer Assessment District (Assessment District) in 1998 pursuant to the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code and bonds were issued pursuant to the Improvement Bond Act of 1915, Division 10 of the California Streets and Highways Code.

 

Sonoma Valley County Sanitation District Eighth Street East Sewer Assessment District Limited Obligation Improvement Bonds (Bonds) totaling $2,945,000 were issued by the District to finance the construction of certain wastewater collection improvements within the Assessment District, including trunk sewer lines, laterals and other ancillary improvements; and the acquisition and construction of improvements to the treatment plant and reclamation system, along with associated administrative expenses (Project).

 

The District has confirmed that the Project has been completed, and all remaining debt associated with the Bonds were retired on September 2, 2016.

 

After the retirement of the Bonds, a surplus remains in both the Special Reserve Fund and Redemption Fund. The District retained NBS to review and prepare a District Closeout Analysis Report (Closeout Report) for the Assessment District. This Closeout Report summarizes the recommendations for the disposition of the remaining funds in the Special Reserve Fund and Redemption Fund in accordance with applicable laws.

 

As a part of the closeout analysis, NBS also conducted an analysis of the assessment payments to determine any Assessment District delinquencies. Per Sonoma County’s property tax records, there are no delinquencies in the Assessment District.

 

Strategic Plan:

N/A

 

Prior Board Actions:

Multiple board actions in years of 1996-1998 including:

08/06/1998: Resolution #98-0969 approving Preliminary Official Statement and Bond Purchase Contract

07/21/1998: Resolution #98-0968 authoring issuance of Limited Obligation Improvement Bonds

05/20/1997: Resolution #97-0662 approving Engineer’s Report, levying assessments, and ordering improvements for the Eighth Street East Sewer Assessment District

 

Fiscal Summary

 Expenditures

FY 22-23 Adopted

FY23-24 Projected

FY 24-25 Projected

Budgeted Expenses

$653,489.20

 

 

Additional Appropriation Requested

 

 

 

Total Expenditures

$653,489.20

 

 

Funding Sources

 

 

 

General Fund/WA GF

 

 

 

State/Federal

 

 

 

Fees/Other

 

 

 

Use of Fund Balance

$653,489.20

 

 

Contingencies

 

 

 

Total Sources

$653,489.20

 

 

 

Narrative Explanation of Fiscal Impacts:

If approved, the available surplus balances in the Reserve Fund ($260,304.36) and Redemption Fund ($393,184.84) will be disbursed to the property owners as outlined in the Closeout Report. Budget shown for presentation purposes only, funds are being held in trust for the benefit of the underlying property owners.

 

Staffing Impacts:

 

 

 

Position Title (Payroll Classification)

Monthly Salary Range (A-I Step)

Additions (Number)

Deletions (Number)

 

 

 

 

 

 

 

 

 

 

 

 

 

Narrative Explanation of Staffing Impacts (If Required):

N/A

 

Attachments:

Resolution

 

Related Items “On File” with the Clerk of the Board:

District Closeout Analysis Report