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HomeMy WebLinkAboutOrder 045 - La Pine Sewer Dist DissolutionDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of September 30 2013 DATE: September 19,2013 FROM: Laurie Craghead. Legal 541-388-6623 TITLE OF AGENDA ITEM: Consideration of Board Signature of Order 2013-045 Declaring the Board of County Commissioners to be the Board of Trustees for the La Pine Special Sewer District, and Initiating and Finalizing the Dissolution of the District PUBLIC HEARING ON THIS DATE? NO. BACKGROUND AND POLICY IMPLICATIONS: In June 2012, the City of La Pine entered in to agreements with the La Pine Water District and the La Pine Special Sewer District to take over the responsibilities of the districts for the territory within City limits. The agreement also provided for the transfer of all the districts' assets to the City. Since then, neither district has had any governing body members. The only real property that remained in district was a 2.6 acres parcel on the west side of Huntington Road but south of Burgess Road. The districts could not be dissolved, however, until the United States Department of Agriculture consented to the transfer ofthe Sewer District's USDA loan to the City. That consent has now been given. Because the district consists of only the 2.6 acre parcel that is not served by the districts, the districts are no longer necessary for the purpose for which they were formed. Therefore, it is in the best interest of the citizens of the districts and the County to dissolve the districts. Order 2013-045 provides all the statutorily required findings for dissolving the La Pine Special Sewer District. FISCAL IMPLICATIONS: None RECOMMENDATION & ACTION REQUESTED: Motion: Approve Board Signature of Order No. 2013-045 ATTENDANCE: Laurie Craghead DISTRIBUTION OF DOCUMENTS: Laurie Craghead to get original in order to obtain 3 certified copies of the order. REVIEWED ~ LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ALSO ACTING AS THE BOARD OF TRUSTEES FOR THE LA PINE SPECIAL SEWER DISTRICT An Order Declaring the Board of County * Commissioners to be the Board of Trustees for the * ORDER NO. 2013-045 La Pine Special Sewer District and Initiating and * Finalizing the Dissolution ofthe District * WHEREAS, on or about June 27, 2012, the City of La Pine (the "City") and the La Pine Special Sewer District (the "District") entered into a Master Withdrawal and Transfer Agreement ("Agreement"), attached as Exhibit A and incorporated by reference herein, to facilitate the City's withdrawal of the District's territory pursuant to ORS 222.520; and WHEREAS, on July 1,2012, pursuant to the Agreement and ORS 222.520, the City withdrew the District territory that existed within the City's boundaries; and WHEREAS, after the City withdrew the District territory that existed within the City's boundaries, only 2.6 uninhabited acres of the District remain and, thus, pursuant to ORS 264.410, there are no qualified District board members or voters; and WHEREAS, pursuant to ORS 198.920(3), ifthere are no qualified District board members, "the county board shall act as or appoint a board of trustees to act in behalf of the district" for purposes of dissolution; and WHEREAS, as of July I, 2012, pursuant to the Agreement, all District operations, including the provision of sewer services, were transferred to, and assumed and performed by, the City; and WHEREAS, pursuant to the Agreement, for the interim period beginning on July 1, 2012 and ending on the date upon which the transfer and assignment of one or more United States Department of Agriculture -Rural Development loans (the "Loans") to the City occurs in connection with the City's withdrawal of the La Pine Water District's territory under ORS 222.520, the District granted the City full right, power, and authority necessary or appropriate to operate the sewer system, including, without limitation, the right to operate and control the District's assets; and WHEREAS, pursuant to the Agreement, all of the District's real and personal property will be conveyed, transferred, and assigned to the City on the date upon which the transfer and assignment of the Loans to the City occurs, which in no event may be prior to the date USDA consents to such transfer and assignment; and WHEREAS, based on the foregoing, the Board of County Commissioners (the "BOCC") finds that it is in the best interest ofthe public to act as the board of trustees rather than appoint a separate board of trustees to act on behalf of the District; and WHEREAS, pursuant to District Resolution No. 12-7, attached as Exhibit B and incorporated by reference herein, the District approved the Agreement and the dissolution of the District in accordance with ORS 198.920; and PAGE 1 OF 3-ORDER No. 2013-045 WHEREAS, in accordance with ORS 198.925, the Agreement included the requirements of a proposed plan of dissolution and liquidation, but was not filed in the office ofthe Deschutes County Clerk ("County Clerk") within 30 days after the District initiated the dissolution proceeding; and WHEREAS, pursuant to ORS 198.925, the District's description of outstanding indebtedness, real and personal property, and other assets is included in Exhibit A; and WHEREAS, no uncollected taxes, assessments, or charges levied by the District exist; and WHEREAS, the estimated cost for dissolving the District, which process will include approximately 10 hours of Deschutes County Legal Counsel time in preparing dissolution and other necessary transfer documents, time of the BOCC and its staffto conduct the public meetings to approve this document and other necessary dissolution and transfer documents, will likely be less than $5,000; and WHEREAS, pursuant to ORS 198.940, the BOCC shall declare the District dissolved without an election if the BOCC finds that dissolution is in the interest of the people of the county and the territory within the affected district is uninhabited; and WHEREAS, because the City is and will be providing the District's functions for the territory within the City limits and no services were provided to the remaining 2.6 acre parcel described above, the City shall retain the books and records of the District rather than depositing them with the County Clerk; and WHEREAS, this order and Exhibits A and B provide the necessary findings required by statute to dissolve the District; and WHEREAS, the county board of trustees for the District is needed to sign documents for the transfer and conveyance of all assets and liabilities of the District to the City as part of the dissolution and winding up of the affairs of the District; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ALSO ACTING AS THE BOARD OF TRUSTEES FOR THE LA PINE SPECIAL SEWER DISTRICT HEREBY ORDERS as follows: Section 1. The BOCC shall act as the District's board of trustees for purposes of initiating this dissolution, transferring and conveying all the District assets to the City, and taking all other actions necessary to wind up the affairs of the District prior to and after the dissolution ofthe District; and Section 2. This order and Exhibits A and B are the dissolution plan for the District. Section 3. Within seven days of the BOCC signatures on this document, the Deschutes County Legal Counsel shall file a copy ofthis order with the County Clerk as the dissolution plan for the District. III I PAGE 2 OF 3-ORDER No. 2013·045 Section 4. Upon filing of the dissolution plan with the County Clerk, the District is dissolved. Dated this ___of September, 2013. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ALAN UNGER, Chair TAMMY BANEY, Vice Chair ATTEST: Recording Secretary ANTHONY DeBONE, Commissioner STATE OF OREGON ) ) ss. County of Deschutes ) Signed and sworn to (or affirmed) before me, a Notary Public, by ALAN UNGER, TAMMY BANEY, ANTHONY DEBONE, the above-named Board of County Commissioners of Deschutes County, Oregon, also acting as the board of trustees for the La Pine Special Sewer District, on behalf of Deschutes County, Oregon and the La Pine Special Sewer District. DATEDthis __dayof ______,2013. Notary Public for Oregon My Commission Expires: _________ PAGE 3 OF 3-ORDER No. 2013-045 \ I