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*~' CQUNTY OF BUTTE; STATE ~F CAtIF~RNIA
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:;~ ~'+' Resolution No. os- i43
RESOLUTION CONTINUING THE EXTENSION OF THE TRUST FUND
ESTABLISHED PURSUANT TO RESOLUTION 98-161
GOVERNING THE EXCHANGE OF PROPERTY TAXES FOR THE
DISSOLUTION OF THE LIME SADDLE COMMUNITY SERVICES DISTRICT
THROUGH MARCH 7, 2011 AND PROVIDING FOR
RESTRICTIVE USE OF THE TRUST FUNDS
WHEREAS, the Lime Saddle Community Services District was dissolved pursuant to
the will of the people as expressed in the March 7, 2000 election; and
WHEREAS, pursuant to Resolution 98-161, the Lime Saddle Community Services
District allocation of property tax revenue has been transferred to the County of Butte General
Fund; and
WHEREAS, pursuant to Resolution 98-161, the Butte County Auditor-Controller has
established a Trust Fund and placed such property tax allocation monies into said Trust Fund;
and
WHEREAS, all real and personal property of the District has been transferred to the
County of Butte; and
WHEREAS, pursuant to Resolution 98-161, the County General Services Department
was directed to proceed with the sale of the property and building located at 5291 Pentz Road,
Paradise. All monies derived from the sale of the property and buildings were placed in the Trust
Fund established by Resolution 98-161.
WHEREAS, pursuant to Resolution 98-161, the trust fund shall be used for the
implementation of the pipeline construction for the improvement of the water supply to existing
users within the Lime Saddle Community Services District and Spring Valley School; and
WHEREAS, pursuant to Resolution 98-161, such Trust Fund was to remain in existence
for a period of three years from the passage of Resolution 98-161 and was due to sunset in
October 2001; and
WHEREAS, the time period for use of the trust fund has been truncated by the late date
of the election regarding the dissolution of the Lime Saddle Community Services District; and
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WHEREAS, the true spirit of Resolution 98-161 was to provide adequate time for the
use of the Trust Fund for purposes expressed therein and has been extended three times by
Resolution 01-062 until March 7, 2003; through Resolution 03-035 until March 7, 2006; and
through Resolution 06-035 through March 7, 2009; and
WHEREAS, the two-mile pipeline referenced in Resolution 98-161 and all resolutions
extending the Trust Fund is not finished; and
WHEREAS, the true cost of the project cannot be determined until the project has been.
completed; and
WHEREAS, the Board will need this information to perform the benefits analysis to
equitably disburse the monies of the trust fund to the benefit of the ratepayers in the Lime Saddle
area.
WHEREAS, the estimated timeline associated with completion of the project is currently
estimated to be beyond the current sunset of the controlling resolution; and
WHEREAS, the Butte County Water Commission considered this issue at their
September 2, 2008 and voted to bring forward recommendations to the Board;
NOW, THEREFORE, BE IT RESOLVEll by the Butte County Board of Supervisors
as follows:
1. The Trust Fund established pursuant to Resolution 98-161, and extended by Resolutions
01-062, 03-035 and 06-035 shall continue in existence until March 7, 201 1.
2. The County shall request that Del Oro approach the PUC to support a plan to:
a. Continue collection of the surcharge from ratepayers until the completion of the
construction of the 2-mile pipeline now underway and scheduled to conclude mid
2009 as outlined by the PUC in the Settlement Agreement.
b. Upon completion of the project, request that the PUC reallocate the surcharge
based on a reimbursement to the Lime Saddle District for a portion of the
construction costs through a project contribution using the Trust Fund monies.
c. Set up the project contribution to accommodate for a proportionate reduction of
the equity financing prior to a pay-down of the State Revolving Loan.
3. Restrict benefits of the Trust Fund to the users within the Lime Saddle District.
4. Reimbursement shall be made to the County General Fund of 10% of the Trust Fund
balance at the time of the project contribution for legal, administrative and other staff
time associated with administration of the Trust Fund.
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PASSED AND ADOPTED by the Board of Supervisors of the County of Butte, on this
21st day of October 2008 by the following vote:
AYES• Supervisors Connelly, Dolan, Kirk, Chair Josiassen and Yamaguchi
NOES: None
ABSENT: None
ABSTAIN: None
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Curt Josiassen, Chair
Butte County Board of Supervisors
ATTEST:
C. Brian Haddix, Chief Administrative Officer
And Clerk of the Board of Supervisors
By:
Extensiontrust 1 l .doc