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C. 62
To: Board of Supervisors
From: Russell Watts, Treasurer-Tax Collector
Date: March  29, 2022
The Seal of Contra Costa County, CA
Contra
Costa
County
Subject: AUTHORIZING CLOSURE OF ACCOUNTS OF FORMER LOS MEDANOS COMMUNITY HEALTHCARE DISTRICT

APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE

Action of Board On:   03/29/2022
APPROVED AS RECOMMENDED OTHER
Clerks Notes:

VOTE OF SUPERVISORS

AYE:
John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor
Contact: Belinda Zhu, (925) 608-9550
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED:     March  29, 2022
,
 
BY: , Deputy

 

RECOMMENDATION(S):

ADOPT Resolution No. 2022/105 approving and authorizing the closure of former Los Medanos Community Healthcare District financial, investment, and business accounts, including but not limited to accounts established with Bank of the West and the Local Agency Investment Fund (LAIF) operated by the California State Treasurer's Office.

FISCAL IMPACT:

No fiscal impact.

BACKGROUND:








BACKGROUND: (CONT'D)
On March 9, 2022, the Local Agency Formation Commission (LAFCo) recorded a Certificate of Completion (Document No. 2022-0042380) with the County Clerk-Recorder dissolving the Los Medanos Community Healthcare District. The recording was completed following action by the California Supreme Court to deny the Los Medanos Community Healthcare District’s petition requesting review of the Court of Appeal’s decision in Los Medanos Community Healthcare District v. Contra Costa LAFCO and Contra Costa County challenging the dissolution approved by LAFCo.  
  
The dissolution of the District was originally authorized by LAFCo Resolution No. 17-13B, which approved the dissolution, including certain terms and conditions related to that action. The terms and conditions of the dissolution, among other things, appoint Contra Costa County to serve as successor agency of the dissolved District and charges the County with winding up the former District's affairs. This includes taking possession and disposing of District assets and liabilities.  
  
Since the March 9, 2022 dissolution of the District by LAFCo, the County has been working with entities to gain control of the District's financial assets. In that time, there has been a request for formal action by the Board of Supervisors to authorize the closure of an account. To satisfy that request, and in anticipation of future such requests from financial institutions or other entities for which the District had an open business account, today's action serves as the Board of Supervisors' authorization to close those accounts as part of its responsibility as successor agency to the former District. In addition, any remaining proceeds in such account will be authorized to be remitted to the County Treasury for use in the former District area.

CONSEQUENCE OF NEGATIVE ACTION:

County staff will not have a formal authorization from the Board of Supervisors requesting the closure of former District accounts potentially making it difficult to adhere to the Terms and Conditions set forth in LAFCo Resolution No. 17-13B with regard to the County's responsibilities as successor to the District.

CHILDREN'S IMPACT STATEMENT:

No impact.

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