Condition No. 5 of Resolution 2019-10 adopted on July 25, 2019, approving the reorganization establishing RD 900 as a subsidiary district to the City of West Sacramento stated as follows:
Within 90 days of the approval of this Resolution (or such longer time as she shall reasonably deem necessary), the Executive Officer shall present the Commission with a detailed proposal to further specify the division of the assets, liabilities, revenues and expenses of RD 537 as they exist on the effective date of Actions 2-4 (as provided in Condition 7) between RD 900, as RD 537’s successor agency in the area detached from RD 537 by this Resolution, and RD 537 in its capacity as an independent special district serving the unincorporated areas which now constitute the balance of the district ("Financial Plan"). The Executive Officer will invite a joint proposal from RD 537 and RD 900 (as reorganized by this Resolution) to provide that more specific division. Should they fail to agree on a Financial Plan within this timeline, the Executive Officer may retain appropriate consulting support, at RD 900’s expense, to review the records and assets of RD 537 to recommend a Financial Plan. If RD 537 and RD 900 (as reorganized by this Resolution) jointly propose a Financial Plan that leaves one or more issues unresolved, the Executive Officer may make a recommendation as to those issues without or without consulting support. The Executive Officer’s recommendations shall be provided to RD 537 and RD 900 (as reorganized by this Resolution) with an invitation to comment before those recommendations are presented to the Commission. After a noticed public hearing, the Commission shall adopt the Financial Plan recommended by the Executive Officer in all or part, with or without conditions or amendments, and that action shall establish the rights and obligations of RD 537 and RD 900 (as reorganized by this resolution) as to the assets, liabilities, revenues and expenses of RD 537 as they exist on the date the Certificate of Completion as to Actions 2–4 is filed. Implementation of this condition is intended to divide the assets, liabilities, revenues and expenses of RD 537 as they exist on the date the Certificate of Completion as to Actions 2–4 is filed in fair proportion to the division of service responsibilities effected by this Resolution so those in the City served by RD 537 to date will have the benefit of the assets their assessments and other contributions allowed RD 537 to accumulate and the burden of the liabilities service to them required it to incur and the same will be so as to those outside the City served by RD 537.
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