TO: Board of Supervisors
FROM: Ryan J. Alsop, County Executive Officer
REPORT BY: Becky Craig, Assistant County Executive Officer
SUBJECT: Courthouse Construction Fund
RECOMMENDATION
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County Executive Officer requests the Board:
1. Adopt a Resolution closing the Courthouse Construction Fund (Fund 3000, Subdivision 3002500), terminating penalties and outstanding balances dedicated to funding the Courthouse Construction Fund, and transferring the remaining balance of approximately $3,600,000 to the State Judicial Council of California, as required by State law; and
2. Approve a Budget Adjustment increasing Courthouse Construction Fund Contributions Other Financing Uses (3002500-56900) to $3,600,000 offset by use of fund balance to remit excess collections to the State and close the subdivision (4/5 vote required).
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EXECUTIVE SUMMARY
By resolutions adopted in 1991 and 1994, the Board approved increasing penalties associated with criminal offenses and parking citations to fund the construction, repair, and maintenance of court facilities. Revenue generated by these penalties was placed in the County’s Courthouse Construction Fund. In 2002, State law was changed to gradually transfer responsibility of court facilities from the counties to the State, and to require transfer of any funds remaining in courthouse construction funds to the State after certain conditions are met. Those conditions have been satisfied, and the State is requesting the remaining balance in the Courthouse Construction Fund of approximately $3.6 million. This proposed action will close the Courthouse Construction Fund, eliminate the penalties used to fund the Courthouse Construction Fund, and transfer the remaining balance to the State as required by State law. This proposed action also authorizes all agencies to waive and release these penalties associated with the Courthouse Construction Fund that may still be outstanding or unpaid on criminal cases or parking citations.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Mandatory |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None, these actions will close the Courthouse Construction Fund. |
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Consequences if not approved: |
The State will further pursue collection of the money in the Courthouse Construction Fund. |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
On August 20, 1991, the Board established the Courthouse Construction Fund pursuant to Resolution No. 91-91. In the same resolution, the Board imposed a penalty of $7.00 for every $10.00 collected by the Napa County Superior Court for criminal offenses, of which $4.00 was designed to fund the Courthouse Construction Fund. On January 4, 1994, the Board imposed a penalty of $2.50 for each parking citation, of which $1.50 was designated to also fund the Courthouse Construction Fund, pursuant to Resolution No. 94-2. This penalty is applied to all parking citations issued in Napa County, not just those issued by the Sheriff.
On September 29, 2002, the Governor signed the Trial Court Facilities Act of 2002 (SB 1732), gradually transferring the responsibility of providing court facilities from the counties to the State. SB 1732 contemplated that transferring responsibility to the State would eliminating the need for counties to accumulate courthouse construction funds, except for the repayment of debt obligations for courthouse improvements already incurred. Government Code section 70402, adopted by SB 1732, provides that any amount remaining in a county’s courthouse construction fund must be transferred to the State upon the later of the following two events:
(1) the date of the last transfer of responsibility for court facilities from the county to the Judicial Council or June 30, 2007, whichever is earlier, or
(2) the date of the final payment of the bonded indebtedness for any court facility that is paid from that fund is retired.
The County entered into transfer agreements for all its court facilities with the Judicial Council of California (Napa County Agreement Nos. 7032, 7032-2, 7032-3, and 7032-4) in 2008 and 2015. All debt issued for improvements to the court facilities has been retired. Because both conditions have been satisfied, the State is requesting the balance remaining in the Courthouse Construction Fund of approximately $3.6 million pursuant to Government Code section 70402.
This proposed action requests authority to terminate the portions of the two penalties adopted by Resolution Nos. 91-91 and 94-2 that are associated with the Courthouse Construction Fund, to close the Courthouse Construction Fund (Fund 3000, Subdivision 3002500), and to transfer the remaining balance estimated to be approximately $3.6 million to the State Court Facilities Construction Fund. This requested transfer includes any residual amounts that may accrue to the Courthouse Construction Fund after it is closed, while the Superior Court and agencies issuing parking citations transition and eliminate the penalties from their forms and processes. This proposed action also authorizes all agencies to waive and release these penalties associated with the Courthouse Construction Fund that may still be outstanding or unpaid on criminal cases or parking citations.