21-1102_SANTA MARGARITA WATER DISTRICT_F1a_PowerPointFinal Actions for Utilities Reorganization
Item F1a
November 2, 2021
Amendment to Annexation Agreement
•Declare Annexation Effective Date to be November 15
•Unless City Manager and SMWD General Manger agree to later date
•$6.5 million Water Fund OCERS payment
•SMWD to pay for adjustment of water/sewer infrastructure
when required for street projects
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Bill of Sale (Assignment Agreement)
•Provides transfer of ownership of Water and Sewer Fund
related property, cash balances, and uncollected billings to
SMWD as of Annexation Effective Date
•Provides retention of $175,000 for final payroll and interfund
allocations through Annexation Effective Date
•Provides for SMWD reimbursement to City for:
•Final utility vendor invoices paid after Annexation Effective Date
•Transitional assistance to SMWD to process customer payments
•Up to $50,000 of final legal bills relating to annexation
3
Assignment of Bond Obligation to SMWD
•Provides for transfer of Water Fund bond obligations to
SMWD:
•Water Revenue Bonds, Series 2014A
•Refunding Revenue Installment Agreement, Series 2017
•San Juan Basin Authority Lease Revenue Bonds (Ground Water
Recovery Plant)
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Stormwater Operations
•Retained by City
•Previously supported by Utilities Department employees
•Propose:
•One full-time Senior Public Works Specialist
•One seasonal part-time Public Works Specialist II
•Stand-by pay for after hours support
•Funded by existing funds in budget and retained property taxes
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Other Personnel Adjustments
•Part-time Accounting Specialist to become full-time to provide
back up for reduced staffing of Customer Service Division funded
by retained property taxes
•Fill Environmental Programs Analyst position approved by City
Council on June 1, 2021
•Funded by Forfeited Construction and Demolition Fund
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Benefits of Annexation
•Management of utilities by specialized public agency
•Enhance efficiencies and economies of scale
•$25 million to be invested in system replacements/improvements
•Moderation of future rate increases
•Optimized management of groundwater basin
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Recommendations
1.Adopt resolution approving First Amendment to the Annexation
Agreement;
2.Adopt resolution approving Bill of Sale, Assignment and
Assumption Agreement;
3.Adopt resolution approving Assignment, Assumption and
Amendment for each of three Bond Obligations;
4.Authorize City Manager to execute said agreements and take
other actions as necessary;
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Recommendation
5.Adopt resolution to add one Senior Public Works Specialist, one
Part -Time Public Works Specialist II, delete on Part-Time
Accounting Specialist and add one Accounting Specialist;
6.Increase General Fund Fiscal Year 2021/22 budgeted
expenditures and revenues by $77,000 for storm drain costs,
customer service back-up, funded by retained property tax
revenues; and,
7.Increase Forfeited Construction and Demolition Fund Fiscal Year
2021/22 budgeted expenditures by $122,000 for Environmental
Programs Analyst.
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Thank you
QUESTIONS?
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