To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: Majority
Supervisorial District(s): First
Title:
Title
Roads Impaired Asset Disposition
End
Recommended Action:
Recommended action
Approve Sonoma County Public Infrastructure’s annual capital asset disposition for FY 2025-26.
end
Executive Summary:
SPI Roads is requesting approval of the SPI Roads annual capital asset disposition for FY 2025-26 pursuant to ACTTC Financial Policy FA-1: Accounting for Capital Assets for the following “Construction in Progress” (CIP) asset initiated in 1999 which is impaired due to changes in the project scope and lead agency. The project is Highway 12-121 @ 8th St. East to be recoded as disposed/impaired asset value of $541,517.78.
Discussion:
SPI Roads is requesting Board approval of its capital asset disposition. Under the requirements of Policy FA-1: Accounting for Capital Assets set forth in the Auditor-Controller-Treasurer-Tax Collector’s (ACTTC) Fiscal Policy Manual, each County Department is required to inform the Board of Supervisors (BOS) of any losses incurred related to the disposition or impairment of a capital asset over $100,000.
SPI is requesting approval to dispose of the following “Construction in Progress” (CIP) asset initiated in 1999 which is impaired due to changes in project scope and lead agency. “Construction in Progress” is a type of capital asset defined as the accumulation of all costs incurred on uncompleted land improvements, buildings, building improvements, or infrastructure:
|
Asset ID |
Description |
Date Started / Acquired |
Acquired Value |
Disposition |
|
C02292 |
HWY 12-121 @ 8TH ST EAST |
12/28/1999 |
$541,517.78 |
Impaired/Disposed |
Due to subsequent project changes, including the determination that the County will not retain ownership of the completed asset and that a majority of the work occurs within the State’s right of way, accounting standards no longer support classification of this effort as a County CIP asset. As a result, the project has transitioned to a different delivery and funding structure, with the Sonoma County Transportation Authority (SCTA) serving as the lead agency to better coordinate funding contributions among regional stakeholders.
Although the County is no longer carrying this effort as a CIP asset, it continues to actively participate in and contribute funding toward the project under the appropriate accounting classification.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
8/20/24: Approve Sonoma Public Infrastructure’s annual capital asset disposition for FY 2023-24.
Fiscal Summary
Narrative Explanation of Fiscal Impacts:
The disposition of capital assets is a non-cash transaction and has no direct fiscal impact on the FY 2025-26 budget. If approved, cost incurred I prior years will be removed from the Capital Asset balance sheet.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
N/A
Related Items “On File” with the Clerk of the Board:
N/A