To: Board of Directors, Sonoma County Water Agency
Department or Agency Name(s): Sonoma County Water Agency
Staff Name and Phone Number: George Lincoln, (707) 521-1808
Vote Requirement: 4/5th
Supervisorial District(s): Fourth
Title:
Title
Sonoma County Water Agency - Capital Projects Financing and Accounting Approvals
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Recommended Action:
Recommended action
Approve capital asset impairment for FY 2024-25.
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Executive Summary:
The Sonoma County Water Agency (Sonoma Water), in conjunction with the Auditor-Controller Treasurer-Tax Collector (ACTTC), is requesting approval of the Sonoma Water capital asset impairment for FY 2024-25 per ACTTC Financial Policy FA-1: Accounting for Capital Assets.
Discussion:
Per the requirements of Policy FA-1: Accounting for Capital Assets set forth in the Auditor-Controller-Treasurer-Tax Collector’s Fiscal Policy Manual, each County Department is required to inform the Board of Directors of any losses incurred related to the impairment of a capital asset over $100,000. Sonoma Water is requesting approval to impair the following capital improvement project initiated in FY 2018/19 due to the decommissioning of the Pall System in the Airport-Larkfield-Wikiup Sanitation Zone. As of June 2024, the Town of Windsor is responsible for collecting and treating this wastewater on a contractual basis, and the Pall System no longer needs to be operated.
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Description |
Value |
Disposition |
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Airport/Larkfield/Wikiup Treatment Plant PALL System |
$763,289.50 |
Impaired |
County of Sonoma Strategic Plan:
N/A
Sonoma Water Strategic Plan Alignment
This item directly supports Sonoma Water’s Strategic Plan and is aligned with the following goal, strategy, and action item.
Goal: 2. Planning and Infrastructure - Implement comprehensive, integrated, and innovative infrastructure planning to strengthen existing services, minimize life cycle costs, and prepare for the future.
Strategy: 2.3 Fund and implement the planned capital and maintenance projects on schedule to ensure reliable services.
Action Item: 2.1.3 Continue to engage in planning efforts to support reliable wastewater and flood management services.
Item supports strengthening existing services by reducing operational and long-term needed investments through coordinated efforts with Town of Windsor for contracting of wastewater treatment.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
November 19, 2019 - Airport Treatment Plant Control System Improvements, North Point
Technology, LLC.
Fiscal Summary
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Expenditures |
FY24-25 Adopted |
FY25-26 Projected |
FY26-27 Projected |
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Budgeted Expenses |
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Additional Appropriation Requested |
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General Fund/WA GF |
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State/Federal |
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Fees/Other |
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Use of Fund Balance |
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General Fund Contingencies |
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Narrative Explanation of Fiscal Impacts:
The impairment of capital assets is a non-cash transaction and has no direct fiscal impact on the FY 2024-25 budget. If approved, cost incurred in prior years will be removed from the Capital Asset balance sheet.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
None.
Related Items “On File” with the Clerk of the Board:
None.