TO: Members of the Governing Board
FROM: Christopher Silke, District Engineer
REPORT BY: Anna Martinez, Assistant Engineer
SUBJECT: Approval of a Letter Requesting Loan Forgiveness from Napa County
RECOMMENDATION
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Approval of and authorization for the Chair to sign a letter requesting waiver of repayment of loans made by Napa County to 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; Napa Berryessa Resort Improvement District Fund; Not Budgeted; Discretionary)
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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, due to the large-scale infrastructure improvements needed, 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 asset and infrastructure renewal resulted in additional systems failures and pe...
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