The Sanitary District No. 2 of Marin County (District) was formed under Chapter 161 of the Statutes of 1891. The District was re-organized (re-incorporated) as a Subsidiary District to the Town of Corte Madera effective January 15, 1969, by the State of California Secretary of State in accordance with Section 56452 of the Government Code. This was pursuant to the District Reorganization Act of 1965.
The District came into existence by historical necessity because the Town was not yet organized and therefore could not correct cesspools and raw sewage flows that were becoming commonplace at the beginning of the 20th century. The District was incorporated on January 21, 1901, approximately 15½ years prior to the Town’s incorporation on June 10, 1916. Although legally separate, the Town and District operated in conjunction with each other including sharing equipment, office space, and meeting facilities.
Due to a change in the Municipal Organization Act, the Town was able to legally absorb the District. The District was re-incorporated as a subsidiary district to the Town on January 15, 1969. The Town Council became the Town Council/District Board of Directors. On April 1, 1969, the District ceased being an employer and its former employees were absorbed by the Town. Subsequently, the State Controller’s Office requested that the merger be formalized with a Joint Powers Agreement. Town Resolution 1510 and District Resolution No. 9-73, both of which consummated the Joint Powers Agreement, were adopted by the Town Council/District Board of Directors on September 17, 1973.
Although the District is no longer independent, it does have a legal existence separate and apart from the Town. Currently, the boundaries of the Town and District are essentially contiguous, with three principal exceptions. Portions of the Tiburon Peninsula served by the District are either in the incorporated limits of the Town of Tiburon or in the unincorporated sphere of influence of the Town of Tiburon. That portion of Greenbrae to the east of Highway 101 and south of Corte Madera Creek served by the District is either in the incorporated limits of the City of Larkspur or in the unincorporated sphere of influence of the Town of Corte Madera. A residential area known as Palm Hill in the City of Larkspur features a boundary with the District that is dependent on gravity flow into the District. There are several smaller exceptions such as East Lucky Drive, which is in the unincorporated sphere of influence of the Town of Corte Madera.
The District is presented as a business-type activity and an enterprise fund under the category of proprietary fund types in the fund based financial statements.
The District is a member of the Central Marin Sanitation Agency (Agency), established on October 15, 1979, which is a joint powers agency administered by its own board, separate from the Town Council/District Board of Directors. Financial information of this agency is not included in the accompanying basic financial statements except for the operating expenses included as sewage collection-pump station maintenance, the “FOG” (Fats, Oils & Grease) source control program, and sewage treatment and disposal, which are expenses reimbursed by the District to the Agency. The District contracts under the Joint Powers Agreement with the Agency for Agency personnel to provide all engineering, management, and operational services for the treatment and disposal of wastewater. By a separate contractual agreement, Agency personnel provide for sewage collection pump station maintenance and the FOG source control program (inspection and enforcement) as part of the District’s sewer system management plan as mandated by the State.
Town personnel provide all engineering, management and operational services to the wastewater collection system, exclusive of management and operational services for sewage collection pump station maintenance. In excess of 80% of the funding of the Agency’s sewage facilities were funded by Federal and State sources, with the remainder of the funding by the participants. The District provides one of the six members of the governing board of the Agency. The operating agreement provides that members (including the District) are not obligated for the debts, liabilities, or obligations of the Agency. Pursuant to GASB Statements 14 and 39 regarding “The Financial Reporting Entity”, the Agency operating arrangement has been categorized as a “jointly governed organization.”