TO: Board of Supervisors
FROM: Maiko Klieman - Deputy CEO-Chief Budget Officer
REPORT BY: Maiko Klieman - Deputy CEO-Chief Budget Officer
SUBJECT: Consideration and possible adoption of a Resolution waiving the repayment of loans made to the Napa Berryessa Resort Improvement District
RECOMMENDATION
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Consideration and possible adoption of a Resolution waiving the repayment of loans made to the Napa Berryessa Resort Improvement District (NBRID) in the amount of $5,000,000 pursuant to Government Code Section 25214.4. (Fiscal Impact: $5,000,000; General Fund and Accumulated Capital Outlay; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
Napa Berryessa Resort Improvement District (NBRID) is a special district of the State of California organized in 1965 under the Resort Improvement District Law (Public Resources Code Section 13000 et seq.) for the provision of water and sewer service in an unincorporated portion of Napa County.
Beginning in 1995, the NBRID's infrastructure suffered significant deterioration due to many components reaching the end of their useful life. In response, staff initiated small-scale rehabilitation projects whenever permissible within the confines of available funding. However, after the closure of the Steele Park Resort began in 2008 resulting in a loss of one-third of the District's operating revenue, many necessary repairs were beyond NBRID's budget appropriations capability, and the deficient critical facilities resulted in regulatory permit violations prompting enforcement by the Regional Water Quality Control Board ("Regional Board") and a sewer connection moratorium.
While several minor user rate increases were approved between 2006 - 2011 to offset increased maintenance costs of aging infrastructure, funding for capital improvement project (CIP) expenses was not incorporated into rate calculations, nor was a separate reserve fund established for CIP or asset replacement. The lack of funding to support ass...
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