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Consent-General Government # 12.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Adopt resolution authorizing the Chief Financial Officer to release North Davis Meadows County Service Area's water fees for the Water Connection Project from impound account. (No general fund impact) (Rinde) |
| Recommended Action |
| Adopt resolution authorizing the Chief Financial Officer to release North Davis Meadows County Service Area's water fees for the Water Connection Project from impound account. |
| Strategic Plan Goal(s) |
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Thriving Residents |
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| Reason for Recommended Action/Background |
The North Davis Meadows County Service Area (CSA) adopted a Proposition 218 fee increase on March 20, 2018, to support the construction of a water project to connect to the City of Davis water system. The approved fee increase in the amount of $4,157 per developed parcel and $3,338 in water charges were first enrolled on the 2018-19 property tax bill.
Subsequently, three landowners within the CSA filed a lawsuit on October 4, 2018 challenging the fee in the Yolo Superior Court. On April 23, 2019, the Board of Supervisors adopted a resolution directing the County Chief Financial Officer to impound CSA revenues associated with the dispute fee until resolution of the lawsuit in accordance with Government Code 26906.1. The Superior Court decided the lawsuit in the County's favor on all claims and entered judgment on January 16, 2020. The petitioners in the lawsuit filed a timely appeal and the appeal remains pending.
At this time, the Chief Financial Officer recommends the Board terminate the impound account. In order to terminate, the requirement of Government Code 26906.1 requires that the Auditor continue to impound such revenues until final disposition of the claim or action, or a refund is no longer anticipated. Thus, the Chief Financial Officer consulted with County Counsel who determined that the likelihood that the County will prevail on the appeal makes it appropriate to terminate the impound.
If the impound is terminated, the CSA will then honor its financial obligations already incurred associated with the Water Connection project. This includes a planning loan taken out in June of 2017 which is coming due in June of 2021 and is unable to be extended due to limitations of law on borrowing not being in excess of four years. The remainder of funds after payment of obligations will be held to further the Water Connection project. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The Department of Financial Services collaborated with the CSA Administrative Support team from the Department of Community Services and County Counsel on this recommended action. In addition, this item was discussed at the January 26, 2021 North Davis Meadows CSA Advisory Committee, and the advisory committee expressed their support. |
| Competitive Bid Process |
| Not applicable. |
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