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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"