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HomeMy WebLinkAbout1976-02-04l COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA P. 0. BOX Bl 27, FOUNTAIN VALLEY, CALIFORNIA 92708 10844 ELLIS AVENUE (EUCLID OFF-RAMP, SAN DIEGO FREEWAY) January 21, 1976 NOTICE OF SPECIAL MEETING DISTRICT NO. 7 WEDNESDAY, F FOUNTAIN VALLEY, CALIFORN TELEPHONES: AREA CODE 714 540-2910 962-2411 I am calling a special meeting of the Board of Directors of County Sanitation District No. 7 of Orange County, California, at the above hour and date. The purpose of this meeting is to consider annexation of the Orange Park Acres area to the District. /s/ John Garthe John Garthe Chairman ll MANAGER'S AGENDA REPORT County Sanitation Districts of Orange County, California DISTRICT NO. 7 Special Meeting February 4, 1976 Post Office Box 8127 10844 Ellis Avenue Fountain Valley, Calif., 92708 Teleprcnes: Areo Code 714 540-2910 962-2411 The purpose of this special meeting is to consider the request of the Orange Park Acres Association to proceed with annexation only to the District provided that the District Board will authorize the construction and/or acquisition of _ the Tustin-Orange Master Plan Trunk Sewer, Reaches 17 and 18 if the bond/annexation election is successful. The staff has enclosed the minutes of the previous meetings concerning the Orange Park Acres annexation, as well as the correspondence and engineer's report relative to sewering· the area. Five alternate sewer systems for the proposed improvement district have been developed, ranging from a complete sewer system costing $2.4 million to an a lternat e involving annexa- tion only costing $1/2 million. With regard to all five -alternate plans, it has been assumed that the District would provide the subtrunk sewer system as proposed in the District Master Plan, specifically Reaches 17 and 18 of the Tustin-Orange Subtrunk Sewer. The following questions are before the Board: (1) Can a sewer improvement District be formed solely for the payment of annexation fees? Included is a lett e r from the Districts' General Counsel in- dicating there is no legal basis und er the County Sanitation District Act or the District Re- organization Act to establish an improv ement district solely to pay for the annexation fees . (2) Regardless of which Alternate Plan (1 through 5) is se l ected , is the Board of Directors agreeable to the construction and/or acquisition of Reaches 17 and 18 of the District's Master Plan to sewer the proposed improvement district? With regard to the construction and/or acquisition of Reaches 17 and 18, Tustin- Orange Subtrunk, the District engineer estimates that the costs are approximately $672,000. Fred A. Harper General Manager Post Office 'Box 8127 County Sanitation Districts of Orange County, California 10844 Ellis Avenue .. ··., · Fountain Valley,· Calif., 927.08 DISTRICT NO. __ 1 _ Telepl-ocmes: Area Code 714 540-2910 962-2411 II January 30, 1976 Special Mee·t"ing Feb~tiary 4, 197£ -5;·30 P.M. Last week a notice of a Special Board Meeting for District No. 7, scheduled for Wednesday, February 4th at 5:30 P.M., was .sent to all District Directors. The purpose of the meeting is to consider the requested annexation of the Orange Park Acres area to the District. Incl uded with the meeting notice was a file concerning the annexation, listing five alternate sewer systems for a proposed Improvement District. Today -we a~e ~enc~osing -'-a ~detaile~4:>r-opos~l-;--d~te~~~anda~--z~t~~--~ for ~concurrent-annexat·ion and Bond-authorization -for -.the -orange -Park - Acres , areaA -::-The Distri.ct' s staff ::.and ·Gene-ral:::-Gourisel . have · reviewed this proposal and the following is our understanding of same. Election Re: Annexation and Improvement District General Obligation Bonds $1,141,00D± · · Essentiall~the proponents are proposing the formation · of an Improvement District to issue gen~ral obligation bonds following a successful annexation/bond election _ (2/3 majority) in the amount of $1,141,000. The bond pro - c eed s will acquire "right of service and use of the District's existing facilities " which are equal to the annexation fees $455,400, payment of $671,68 4± for the necessary Master Plan Trunk Sewers, Reaches 17 and 18, to serve the area, and $15,000 reimburs eme nt of advances by proponents of the annexation proceedings. _Prepaid Connection Charges for Parcels Wi thi n Proposed Annexation Each existing parcel within the annexed area as of the date of the e l ect ion will be credited with one connection charge ($250) at the time the prope rty is hooked to the sewer. (425 parcels x $250 per connection equals $106,250). Any division of l and after the date of election will result in the property owners obligation to pay additional connection charges. The property owners will construct the l oca l col l ector sewers either by cash financing or by assessment proceedings . - Reimbursement of Funds Related to Maste r Pl an Subtrunk System Funded by Bond Issue · · As a condition of the general obligation bond proceedings , the Sanitation District will contribute, from District -wide co llection of connection c h arges 1 funds .~e l ated to the subtrunk system funded by the b ond issue ~671,684-, minus th ~ prepaid connection c har ges $106,250. These funds, $565,234-which will only be payable upon receipt of connection charges , will be deposited in the Improvement District Bond and Interest Redemption Fund, subject to previously authoriz ed Master Plan reimbursement agreements. The proceeds deposited in the Bo nd Redemption Fund will be used for the purpose of retiring bonds in advance of maturity or for payment o f both bond principal and interest when due . Tax Rate to Retire I mp rovement District Bond s This is the staff 's projection of the annual debt service for t h e issuance of $1,141,000 general obligation bonds for the Orange Park Acres 550 acre annexation . AnnuaJ::~~Deb~ ~-Se r-vice ··"', 7 perce,nt.,-,, ·-...-15.;-;year-si..;,::~.,~ $125 ,-30:Q , ~ ?---:.:;.,,-_, " Annua l Improvement District Tax Rate (a) March, 1975 assessed value = $5 ,465,0 00 (b) Tax Rate $1 25 ,300 = $2.2928 per $100/A.V.** $5,465,000 :-100 Annual County Sanitation District No . 7 tax rate = $0.4026 per $100/A.V. Total Annua l Tax Rate = $2.695 4 per $100/A.V. ** This tax rate will be r educed by District connection charges collected and trans f erred to the Improvement Bond and Interest Rede mp tion Fund equal to $564 ,234 ± during the life of th e bonds. CURRENT ANNEXATION FEE Effect ive July 1, 1975, all Districts adopted a uniform annexation fee policy. The annual annexation fee equals each Dis trict's assets minus its liabi lities which is the net worth, divided by the number of acres within the District. Th erefore, based on this formula, the District's staff has quoted an annexat ion fee for District No . 7 in the amount of $1,0 29 per acre. During a recent review of the cal cul ations , we find that the co llection system figures include $4.3 million for l ocal sewers such as assessment district sewers and local sewers within tracts. Therefore, the staff recommends that the Board authorize an adjustment of the annexation fee to $828 per acre, thereby eliminating the inclusion of local collection systems wh ich have no bearing on the costs of the District 's Ma ster Pl an system and treatment works . ERNEST A. WILSON KENNETH I . .JONES .JAMES T. MORTON .JOHN E. LYNCH (19!Hl-1971) PHILIP D. ASSAr ANDREW C. HALL, .JR. GERALD A. LASTER .JEREMIAH .J. LYNCH MICHAEL R. NAVE .JAMES L. COPELAND SHARON S. WHITE WILSON, J01'TES, :MORTON & LYNCH ATTORNEYS AND COUNSELLORS AT LAW 630 NORTH SAN MATEO DRIVE CHARLES N. KIRKBRIDE 189-4-1911 KIRKBRIDE & GORDON (JOSEPH B. GORDON) PEGGY L. McELLIGOTT P. 0. BOX 152 KIRKBRIDE & WILSON ROBERT .J. HILL THOMAS C. "'DRONEY THOMAS 1!1. ADAMS SHERROD S. DAVIS LAWRENCE C . .JENSl!:N MAYER A. DANIEL JOAN E. l!IRIODY PAUL C. WILKINS THOMAS S. OWEN ROBERT 0. AUWBREY ROY .J. KOEGl!:N SAN MATEO, CALIFORNIA 94401 [41s] 342-3523 1929-11147 t<IRKllRtDE,WILSON, HARZFCLD & WALLACE 19-47-11161 January 28, 1976 OF COUNSEL AATHUR .J. MA .. ZF"ELO Honorable Board of Directors Sanitation District No. 7 of Orange County P. 0. Box 8127 Fountain Valley, California 92708 Re: Proposal for Concurrent Annexation and Bond Authorization -Orange Park Acres Gentlemen: A. A. KAPLAN (MO. ONLY) On behalf of the residents and property owners of the Orange Park Acres area and the Orange Park Association, Inc., the following is the general proposal now being made in connection with the annexation. Following extensive investigation and discussion, the concept which is proposed to be followed is generally as follows: 1. Concurrently with the annexation procedures, following original proposal, it would be submitted to the voters as a condition of annexa- tion the approval of general obligation bonds covering the following: a) The sum of money necessary to acquire appropriate rights of service and use in the existing treatment and outfall facilities equal to the appropriate annexation charge. b) The payment of a sum necessary to provide major trunks necessary to serve the area within the boundaries, the costs to be adjusted to reflect an offset of any territory within the boundaries of District No. 7 which abuts and would be served by any part of that system, i.e., property north of Chapman Avenue and immediately east of proposed Reach 18 of District No. 7 master plan. c) The reimbursement of advances made by certain property owners within the area of costs of annexation, as well as the payment of any costs incurred subsequent to approval by LAFCO. Honorable Board of Directors Sanitation District No. 7 of Orange County January 28, 1976 Page Two 2. In exchange for this area incurring an obligation to provide facilities normally payable from connection charges pursuant to the District's policy of providing trunk sewers within one-quarter mile of all properties, each separate parcel within the boundaries of the annexed area.as of the date of election would be extended the equivalent of one connection charge credit at such time as the property is hooked to the sewer. In this regard, it is proposed that collector sewers be built either by cash financing, where possible, or by individual assess- ment: proceedings :.-::~-:-Additionally=~ 1 it. is expected·~ that-; divisions.:.of::__ land;:~~::.i after the date of election would-resu-lt~ in-the obligation-to-pay con--·-- nection charges for all except the first. connection~~-·: 3. As in the case of a private subdivision development, and as a condition of the general obligation bond proceedings, the District will provide for the contribution from time to time from connection charges of a reimbursement of an appropriate dollar figure relating to that portion of the trunk system funded through the bond issue. It is here understood that there are currently outstanding previously executed reimbursement agreements amounting to approximately $150,000. For that purpose, an attempt will be made to adjust the reimbursement obligation in order to assure that the earlier contractors will not be unduly affected by this proposal. The proceeds of the reimbursements to the present area would be utilized for the purpose of retiring bonds in advance of maturity or, if more appropriate from a cost saving standpoint, for the payment of both principal and interest when due. It is presently understood that the foregoing proposal would result in a maximum initial debt obligation for this annexation of some $1,141,000. The precise dollar figures must be refined by the assistance or the District staff and would be available at least in preliminary form at the time of presentation of the proposal to LAFCO. The final form would be before your Honorable Board prior to the actual formal hearing on the annexation. It is proposed that the matter should be expedited so that it may be placed on the ballot no later than November of this year, with the understanding that property would be placed on the tax roll for the 1977-78 fiscal year. Any delay beyond November would result in a postponement into a later fiscal year. We hope that the foregoing proposal will result in a clearly equitable treatment of the property owners and users, both within the ' ~a ... ,,.• Honorable Board of Directors Sanitation District No. 7 of Orange County January 28, 1976 Page Three present boundaries of Sanitation District No. 7 and within the proposed annexed area. It is our intent to assure that all persons are equally treated and that no unfair advantage or "free rides" are received and further to assure that the cost of sewers will not be so burdensome as to prove impossible of accomplishment. PLMcE:s cc: Thomas L. Woodruff, Esq. Mr. George C. Rach Orange Park Association, Inc. II BOARDS OF DIRECTORS County. Sanitation Districts of Orange County, California I Post Office Box 8127 10844 Ellis Avenue Fountain Valley, Calif., 92708 Telephones: DISTRICT No. 7 Area Code 714 540-2910 962-2411 AGENDA SPECIAL MEETING FEBRUARY 4, 1976 -5:30 P.M. (1) Roll Call (2) Appointment of Chairman pro tern, if necessary (3) Consideration of motion to receive and file letter from George Rach, Chairman of the Orange Park Acres Planning Committee, dated January 6, 1976, requesting annexation of the Orange Park Acres areq. to the District. See.page "A" (4) (a) Consideration of motion to receive and file legal opinion of the District's General Collllsel relative to the request of the proponents of annexation of the Orange Park Acres area to establish an improvement district solely to pay the District annexation fees. See page "B" (b) Discussion of the General Counsel's opinion (5) Discussion re alternative sewer systems for proposed Orange Park Acres improvement district (Alternatives 1 -5) (6) Consideration of motion directing the staff re annexation procedures and conditions as determined by the Board (7) Consideration of motion to adjourn FACSIMILE OF LETTER FROM ORANGE PARK ASSOCIATION, INC.: ORANGE PARK ASSOCIATION, INC. P. O. Box 2365 ORANGE~ CALIFORNIA 92669 Fred A. Harper, General Manager County Sanitation District No. 7 of Orange County P. 0. Box 8127 Fol.Dltain Valley, California 92708 January 6, 1976 Pursuant to our phone call this morning, it is the consensus of the Orange Park Acres Planning Committee that we should pursue the steps necessary for an annexation to the County Sanitation District.· Please keep me advised as to how I and the members of the Committee can be of assistance to you in the ultimate realization of our desire to be annexed to the 7th Sanitation District. George Rach, Chairman Orange Park Acres Planning Committee AGENDA ITEM #3 RICHARD O. f'RAZEC STEPHEN C.STEWART LAW OF'FICES Stcwitrt, '\TooJruff & frazee AREA COOi!: 71'4 835-8212 ~ THOMAS L. WOOORUf'f' 1055 NORTH MAIN STREET, SUITE IOZO SANTA ANA, CALIFORNIA 92701 "B" JEf'f"REY A. HARTMAN January 21, 1976 Mr. Fred A. Harper General Manager County Sanitation Districts of Orange County, California P. o. Box 8127 Fountain Valley, California 92708 Re: Orange Park Acres Annexation to County Sanitation District No. 7 Dear Mr. Harper: I have been advised that the Directors of the Orange Park Acres Homeowners Association have recently submitted to your office a revised annexation and improvement plan for their properties. Specifically, the request now appears to seek to annex to County Sanitation District No. 7 and not install any portion of the main/trunk sewer system at this time. It is my opinion that there is no legal basis under the County Sanitation District Act, the Improvement District Acts or the District Reorganization Act to establish an improvement dis- trict solely to pay for the annexation fees that would be paid to District No. 7. The provisions of Health and Safety Code Section 4806 clearly intend that improvements must be installed when issuing bonds and annexation fees alone would not qualify. District No. 7 could require the payment or security for the future payment of annexation fees to be posted with the District prior to final action upon the annexation. TLW:ab l-A-2 truly yours, Thomas d:4,. General Counsel AGENDA ITEM #4(A) "B"