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HomeMy WebLinkAbout1983-01-25,. ,.._. .. , COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA P. 0. BOX 8127, FOUNTAIN VALLEY, CALIFORNIA 92708 10844 ELLIS AVENUE (EUCLID OFF-RAMP, SAN DIEGO FREEWAY) January 19, 1983 NOTICE OF ADJOURNED REGULAR MEETING DISTRICT NO. 6 TUESDAY) JANUARY 25J 1983 -5:30 P.M. 10844 ELLIS AVENUE FOUNTAIN VALLEY) CALIFORNIA TELEPHONES: AREA CODE 714 540-2910 962-2411 Pursuant to adjournment of the regular meeting of January 12, 1983, the Board of Directors of County Sanitation District No. 6 will meet in an adjourned meeting at the above hour and date. WHB: rb II .. BOARDS OF DIRECTORS County Sanitation Districts of o;ange County I Califomia DISTRICT No. 6 ADJOURNED .. REGULAR.MEETING TUESDAY) JANUARY 25 J 1983 . -5: 30 p IM·, (1) Roll call (2) Staff report· on long-range financial obligations: (a) Operating and Maintenance requirements (b) Capital requirements Post Office Box 8127 10844 Ellis Avenue Fountain Volley, Calif., 92708 Telephones: Area Code 714 540-2910 962-2411 AGENDA (3) Discussion re alternative·means of funding District's long-range financial needs (4) Consideration of action directing staff to proceed with selected financing alternative (5) Other business and communications, if any (6) Consideration of motion to adjourn January 19, 1983 COU NTY SAN ITAT ION DIST RICTS of 0 RAN GE C OUNTY , C ALIFORNIA P.0.BOX8127 10844 ELLI S AVENU E FOUNTAIN VALLEY. CALIFORNIA 92708 (714)540-2910 (714) 962-2411 MANAGER'S REPORT TO DISTRICT NO. 6 DIRECTORS Meeting Date: January 25, 1983, 5:30 p.m. The purpose of this meeting is to review the Districts' long-range financing needs and consider possible implementation of user fees and modifications to the sewer connection fee schedule . The Costa Mesa Sanitary District, which is the local sewering entity for the largest portion of District No. 6, is also considering adoption of a sewer use fee. Because the services provided by both the Sanitary District and the Sanitation Districts are perceived by the general public to be identical, it appears advisable to conduct joint public workshops concerning the proposed implementation of user fees to minimize any confusion. Staff has held discussions with the Sanitary District on a possible joint effort for public notice, workshops and hearings relative to the implementation of a user charge system. We have also met with the County Assessor's Office regarding the possibility of using their data base for calculating and collecting the charge on the property tax bill. Enclosed is a cash flow projection for District No. 6 and a tentative schedule for adopting and implementing a user fee in cooperation with the Sanitary District. Staff will present a status report to the Directors on Tuesday. ll 15 16 17 :~ 19 ~o 21 29 )J ll )2 )) H JS )6 37 ld H ~o D!SCRIPTIOS R~sccvcs ' Carey-Over Prom L.tst Ye ~r ~ Sh..> re of l \ Tu A.lloc.>t ion ?ecs !nterest ' ~iscell.ineous Income Ot~e c ~~venu e TOTAL ~J::l.'U~ 'TOTAL .\ W..! :.\JI!.? l'USD INC ?X ~!,._'RES S~c• o! Joint Woc<s ~ ' O Collection System~~ o •nd Ot~ec Op<!r. Ot~ec Ex?end itures TOTAL !::< ~ll r.ulU:S Reserves ' C~r~y-Over to Next Year Sext Yeac's ~ry P•c i od ?undlnq Requirements ?cnd Balance or (Oe!lcitl CAP!T.\L F1..~1l (S) Reserves ' C3rry-Over ~rom Last Year ~ Cons:ruction Cr•nts !'!!~S: C..:nnec~on O t~er Sale of C~paclty Riqhts Interest ~ ~.iscellan.eous Income Other :.r.cco.e TOTAL .\ v;\I !..1.31.? !'\ISD INC !.~~!~~ S~re of Joint Wor~s Treatment Ptant O•st.rict Collecdon System Rei!Abu.r s e~ent ~g,eement Payments Ot~er !xpenditures Reserves ' Carry-Over to Next Ye4r Sext Y~•r'• Ory Per i od fundin<j Requirements :-und 9al411ee or (~!lcl t) 90Sll !'t.=(Sl Reserves ' C4rry-Over !rem. t..!:st Year ~ ':'.>.x Levy !ntecest ' ~i sce llaneous Incom e Ot."ler Income Send Pr1ncipi4l ' Interest Oc..~e c !xpendltu.res ':'OT 1.!. !::< ?e. 'Ill I ':'UR!:S Reserves ' C3rry-¢ver to Sext YeAr sext Yeac'• Dry Period !'undin<j Requicement• fu.~d Sal.11\ce o c (De !telt) ~ (Ad justed for Inter-!'und Transfers) ReS<?cves • Ca r ry-¢ver F com t.>st Year ".'0'!'1.!. !L~JE 1'01'.L A VA! U.!IL.? !'CS!l I SG '!'OTA!. !:X Pell> t '!"."llES Res~cves ~ C~cry-Ovec to ~ext Ye4r ~ext Year's Ocy Per1od Pundinq Requirements !'t.~ 11.\LJ..'IC~ OR (0~ IC IT) COUNTY SANITATION DISTRICT HO. 6 S T.\~~elT 0!' PROJECTED C.\SH now !'!SC!U. Y!:.\RS 1982-83 '!'l!ROUCH 1986-87 438 ,000 711,000 23,000 33,000 579 ,000 1,346 ,000 1,78 4,000 954 ,000 190,000 l,lH,000 640 ,000 572,000 68,000 3,469,000 U0,000 50,000 l0,000 lJ ,000 268,000 78 l , 000 4,250,000 945 ,000 129 ,000 579,000 l,653,000 2 ,597 ,000 2,597,000 29,000 26 ,ooo 2 ,000 28 ,000 57 , 000 30,000 30,000 27,000 27 ,000 -0- 3,936 ,000 2 ,155,000 6 ,091 ,000 2,827,000 ) • 264 ,ooo 599 ,000 2 ,665 ,00 0 640,000 782,000 26 ,000 H,000 851,000 1,246,000 147 ,000 l,393 ,000 98,000 696,000 (598,000) 2,597,000 70,000 so ,000 l2,000 543,000 274 ,000 949,000 l ,419 ,000 909,000 2 ,328,000 1 ,218,000 l,2l8,000 27 ,000 26 ,000 2 ,000 28 ,000 55 ,000 29. 000 29 ,000 26,000 26 ,000 -o- 3,26 4 ,000 1,828 ,ooo 5 ,092 ,000 3,750,000 l,342,000 722 ,000 620,000 98,000 876,000 30 ,000 30,000 936 ,000 l,034 ,000 1,4 )),000 168,000 1,601,000 (567 ,000) 800,000 (l,36 7 ,000) l,218,000 263,000 100,000 14 ,ooo 32,000 153,000 562 ,000 1,780,000 2 ,046,000 1 ,150 ,000 3,196,000 (l , 416. 000) (l ,416 ,000) 26,000 25 ,000 2,000 27 ,ooo 53,000 28 ,000 28. 000 25 ,000 25,000 -o- l,342,000 1 ,525,000 2 ,867,000 4,825 ,000 (l,958,000) 825 ,000 !2, 7!3 ,000) (567,000) 981,000 35,000 l ,016 ,0 00 44 9 I 000 1 ,648,000 192,000 1 ,840,000 (l,391,000) 920,000 (2,311,000) (l,416,000) 526 ,ooo 150,000 16 ,000 21,000 713 ,000 (703 ,000) 2,922 ,000 l,975 ,000 4 ,897 ,000 (5 ,600,000) (S ,600 ,000) 25 ,000 35 ,000 2,000 37,000 62,000 32 ,000 32,000 30,000 )0,000 -o- (l ,958,000 ) 1,766,000 (192,000) 6,769,000 (6,961,000) 950,000 (7 ,911,000) 7/19/82 1/19/83 -Revised l,099,000 40,000 l, 139 f 000 (2 52,000) l,895,000 200,000 2. 095. 000 (2,347 ,000) l,0 48,000 p,395,000) (5 ,600 ,000) 657,000 200,000 18. 000 700,000 l,575,000 (4,025,000) l, 73 4 ,ODO 3,051,DDO 4,785,000 (8 ,810,000 ) (8,810,000) 30,000 29,000 2,000 31,000 61,000 31,000 31,000 30 ,000 l0,000 -o- (6 ,961 ,000) 2,745,000 (4 ,216 ,000) 6 ,911,000 (ll,127,000) l ,078 ,000 (12,205,000) S-Year Total 438 ,ooo 4 ,44 9 ,000 154,000 106 ,000 579,000 5,288,000 5, 726 ,000 7,176,000 897,000 8,073,000 (2,347 ,000) 1,048,000 (3,395,000) 3,469,000 1,956,000 550,000 70,000 1,309,000 695,000 4 ,580 ,000 8 ,049,000 9,066 ,000 7 ,2H ,000 579 ,ODO 16 I 859 . ODO (8,810,000) (8, 810, ODO) 29,000 141 ,000 10 ,000 151,000 180,000 150,000 150 ,000 30,000 30 ,000 -o- 3,936,000 l0,019,000 lJ,955,000 25,082,000 (ll ,127 ,000) l , 018 t 0 00 (12,205,000) flla.l!14I~R't Til"ETABI..£ F'OA ~~ Atn ItFOftCATIC»f CF USER F'EE TO B£ COWCTED CN PR'JPERTY Tt.X BILL DISTRICT 6, 19!\J-94 ~[~T DISTRICT 6/COSTA "Es.\ SNdTAR'f DISTRICT APPA'.llCH I ;,naiy:e X!Grnative user f'ee ii!Pleae"lfat!cn I Cln:l!OtS .ni ~t user Yee Aste StlAy P ee A!tern&thes/ Direct surrs To Proceed MAR• APR 9' n rence EstabUshlnq user Fee/ Fhlnq N>llc tearlnq Date on user Fee Aepart grai: ett' nq o 11 rac Parcel Data F'roai CCU'lty Tax "2115 TO Provlae AeGJ1rC'd N:Jtlce/Oevelop user Fee Data Basd/Cross-Aeference 'dth CMS> I "'-· ""''" "" """' ,,.,_,. """" "" rue "'"' '"""' A.AJltor MAY • .lM 83 ree SChlellle • llLlth. COllectlcn Of user Fee 0\ T•• 8111 1/19/SJ .l.JLY • IUa 83 0 Adgpted Rates To Colrlty ~ltor­ Oontroller COUNTY SANITATION DISTRICT NO. 6 Consideration of Long -Range Financial Requirements DISCUSSION OUTLINE A. Review 5-Year Financia l Projection s 1. Operating Shortfall -$3 .4 million (See Schedule A) 2. Capital Shor tfall -$8 .8 milli on (See Schedule A) B. Financ i ng Alternatives 1 . Operating Revenue a. Ad valorem taxes 1 /25/83 (1 ) Share of 1% all ocation (cur ren t source = $711 ,000/year) (2) Election to authorize separate ad valorem tax levy {four -year limit) b. Use r fees & basis for fee {See attached Ta ble III-1 excerpted from Revenue Program ) - (1) Hearing and separate levy of special assessment {user charge) on the property tax bill (2) Separate use r charge collected on water pu r veyors utility bill (3) Direct billing by Districts of separ ate user charge 2. Capital Funding Source Application Policy a. Capital element added Imp r ovements to User Charge {B.l.b. above) Reconstruction b. Connection Fees Expans i on c. Revenue Bonds Improvements Reconstruction d . Loans Expansion e . Election to authorize Improvements separate ad valorem tax levy Reconstruction f. Special Assessment District Expansion g . Grant Funds (limited) Improvements 3. Other Co n siderations Affecting Long-Range Fund i ng Requirements -1- C. Staff Recommendation 1. Special assessment (user charge) to be collected on property tax bill (See Schedule B) a. Supplements current 1% ad valorem tax apportionment b. Recommended charge (preliminary) Single-Family Dwellings Multiple-Family Dwellings Commercial/ Industrial Basis of Charge Annual Rate Flat $26.40 1, 0 0 0 sq. ft. 18 • 9 0 of building 1,000 sq. ft. 18.90 of building Operation Appropriations (5-Year Average) Capital Appropriations (5-Year Average) c. Data Base -County Assessor's Property Roll 2. Connection Fee Revision a. Current Fee Schedule (1) Residential $250/unit (2) Commercial $625/acre b. Recommended Fee Schedule (1) Residential $500/unit (2) Commercial $100/1000 sq. ft. D. Costa Mesa Sanitary District Joint Participation Minimum Annual Charge Per Unit $26.40 15.85 26.40 Est'd Total Annual Fees $727,000 506,000 357,000 $1,590,000 53% 47 100% E. Timetable for Implementation of User Fee Program (see Schedule C) F. Discussion -2- i i G. Suggested Board Actions for Consideration 1. Direct staff to proceed with planning for implementation of a special assessment (user fee) to be collected on the property tax bill 2. Approve tentative timetable for implementation of user fee program 3. Authorize the General Manager to execute an agreement with the Orange County Assessor's Office for computer progranuning to provide data base information, mailing labels and parcel charge tapes relative to user fee to be collected on the property tax bill, for an amount not to exceed $50,000. 4. Direct staff to draft a revision to the connection charge ordinance for first reading on February 9, 1983. a. Increase the connection fee from $250 to $500 per dwelling unit for residential properties b. Change the basis for commercial/industrial properties from acreage to square footage of improvements (buildings) and fix f ee at $100/1000 square feet. -3- .__. t-t .... • (J1 ( Billing Alternative l. Separate charge as a spec i a I asscss111ent on the property tax bill. 2. Separate charge collectell. on \va ter p1arvc)1 01·' s utl Ii ty l> i'I ling. TABLH 1l-1 ( ALTERNATIVE Pl.ANS FOR USER CllARGl!S WHEN AV TAXES ARI: INSUFFICll!NT TO PAY OM&R COSTS Probable Calculation Method l. Subdivide user classes into sub- clusses such as single f:unily and multi-family d\tlel lings, C'ffice buildings, small commercial estab- lishments, etc., and calculate flat · rates attendant to each based on average discharges and syste111 loading from representative samplings. 2. Base charge on \-1ater volu111e ·other Major Relevant Issues ,-r- 1. (a) Current Statutory authority <~xlsts (b) Requires a pliblic hearing nnd separate notice of said headng to all properly 0\'111Cl"S. (c) Utilizes existing ·assessor fi I e as data base and tax bill ns billing mechanism. llC'wever, data base h'oul<l require sub- stantial annual update at Districts' expense and conversion to a computer tape input by Uistricts to assess charge on tai bill. (cl) Inaccuracy of Assessor's tlata base mny rcsul t in high percent of hi 11 ing errors amt recau ire a customer service function . (e) Unsewercd properties could be reflected in rate structure once identified and/ or separate provisions made for rebate. {f) Maximum charge for tax collector's service is establisheJ at $5/account or 1% of collections, whichever is greater. {g) Low de 1 inquency factor. (h) Cash flm~ is not spread even I y. (i) l~ou I J satisfy not if i cul ion requi rcmcn ts 2. (a) Current statutory authodty exists. llowever, it is permissive, not mandat- ory for the '"'at er ut ii Hy. (b) l'Jould not re(1ulre a public hearing. (c) Would re<1uirc contractual arrangements and system modifications '"ith approx- imately ISO water purveyors. (Continue<l) .. , ~) t-t H H • 0\ ( Billing Alternative 2. (Cont' <l.) l. Olrect billing by CSDOC ( ( TABLE I 11-1 (Cont• d) Probable Calculation Method Other Major ltelevnnt Issues 3. Same as I. above utilizing assessor's files as the data base source .. (d) Would require a minimum of data,base maintenance by the Districts as this •muld be automatically done by the '"ater utility. llmrnvcr, separate arrongements may have to be mac.le with the utility to reflect loadings of small commercial estuhlishments. (e) Charge more directly associated with actual use (assuming use is related to water consumptiou). (f) Unse\-1ered prnpert ies would have to he identified and a system exception or rebate provisjon made. (g) lligh delinquency. {h) Cost of service by utility is unknown and \olould have to ·1>e negotiated or established by code amendments. (i) Cash flow would be more uniform. (j) lVould satisfy notificat.ion require- ments. 3. (a) Current statutory authority exists. {b) Would require installation of expen- sive computerized billing system·and· associated personnel and administra- tive costs or contrncting with an outside bureau. (c) Most costly method. {d) Requires extensive data base main- maintenance. (e) Inaccuracy of data base source may result in high. percent of bi Hing errors. (Continued) .. , ~~ H H t-t I -· ( Bil li.!_lg Alternative 3. (Cont 1 d . ) 4. Impose a Separate AV Tax Levy ( TABLE I 11-1 (Cont• <l) Probable Calculation Method ~ 4. Based on property value { 0th er Maj or lte l evan t_l_s_s_u_e_s __ ~--- ( f) Unsewered properties could be tefJ~cted in rate structure once identified and/ or separate provision 111aJe for rebate. (g) Expected delinquency factor woulJ be highest. (h) Cash flow impact wouJJ be hased on determination of billing frequency. (i) Would satisfy notification re<1ui rcmcnt ~- 4. (a) Requires 2/3 voter approval {b) lJnseHereJ property issue a-1ould have t.o be resolved (c) l..ow ·delinquency factor (d) Most cost effective method ( e) Cash flow not sprea~ evenly (f) Would satisfy notification requirements. (g) l..east ec1uitable -., ;1 COUNTY SANITAl 1or~ Dt~1: µ,,, .. of ORANGE CourHY. CALIFOFlrW PO BOX 8127 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 (714)54(}2910 (714)962-2411 • January 26, 1983 MEMORANDUM TO: Supervisor Roger Stanton SUBJECT: District No. 6 Board Actions Re Long-Range Financing As you were unable to attend the District No. 6 Meeting on January 25th, I would like to report to you what actions the Directors took at that meeting. The enclosed information regarding the Districts' projected revenue shortfalls was reviewed with the Board in considerable detail. At the conclusion of the two-hour session the Board declared its intent to proceed with implementation of a user fee program beginning in 1983-84 and approved the actions set forth on Page 3 of the Discussion Outline. As you may be aware, the Costa Mesa Sanitary District is also planning to implement a user charge in 1983-84. Because both agencies provide similar services, we feel that separate public information programs concerning the proposals and the respective roles we play in providing sewer service might be confusing to the public. We have, therefore, suggested to the Sanitary District that a joint effort might be more meaningful to the general public and possibly result in some mutual cost savings by sharing expenses. The Board has, therefore, authorized us to advise the Sanitary District that District No. 6 is proceeding with .implementation of its user fee program and ask if they wish to participate in a joint public presentation of our proposals. If you have any questions, please do not hesitate to call. JWS:dt Enclosures J. Wayne Sylvester Assistant General Manager ~ -- MEETING DA H Jan· 25 ' l 9B3 DISTRICT 1 TIME 5:30 p.m. DISTRICTS 6 -------------------~ ~CRANK), t,,,,,, HANSON,,,,,•-- BRICK~NJ. I •••• LUXEMBOURGER __ EDGAR ,,,,,,,,SALTARELLI,, ___ RILEY ,,,,,,,,STANTON,,,,, ______ __ DISTRICT 2 MC ROBERTS). I .WEDAA. I I ••• -._ ----- OVERHOLJ), I. I .ROTH ••• I,·,.·----NIELSEN),,,,,,BROWN,,,,,,, ___ _ KUZNl~),,,,,,,HOLT,,,,,,,, ______ ____ HICKS ,,,,,,,,ISLES,,,,,,, ____ _ ODLUM •t••••11KAWANAMl1•••--__ __ BRICKE~J, I I. I .LUXEMBOURGER __ -- WIEDER ,,,,,,,NESTANDE11••------· __ CULVER ,,,,,,,PERRY,,,,,,, ________ __ BEYER),•t•••••SMITH,,,,,,, _________ __ HOLMBERGJ,,,,,WEDEL,,,,,,, ________ _ CATLIN),,,,,,,WINTERS,,,,, ______ __ DISTRICT 3 EDWARDS),,,t,,FINLAYSON,,, _____ _ VANDERSJAAY I •• LASZLO. I I I.·-------NIELSEN ,,,,,,ADLER,,,,,,, ______ ____ PERRY)t•••••••CULVER,,,,,, ________ __ SEIDELJJ,,,,,,fRESE,,,,,,, ______ __ JARRELL ,,,,,,GRIFFIN,,,,, _____ _ BRICKEl ,,,,,,LUXEMBOURGER FINLEY ,,,,,,,MANDIC,,,,,,:::::::::::::::: LACAYO ,,,,,,,MULLEN,,,,,, __________ __ COOPER •t•••••NELSON,,,,,, __________ __ MARSHOTT1,,,,,RELL1•••••••----______ __ WEDEL),•t•••••ROGET,,,,,,, ________ ____ OVERHOLT J ..... ROTH. I. I I I I·------------ZOMHICK) t • • • • • SYLVl A •••••• _______ __ NESTANOEJ,,,,,WIEDER,,,,,, ________ __ CATLJN),,,,,,,WJNTERS,,,,, _________ __ DISTRICT 5 ~cox>t·········HART •••••••• ____ --------AGEEJ11 ,,,,,,MAURER,,,,,, _______ __ STANTONS,,,,,,RILEY,,,,,,, ___ ---___ DISTRICT 6 1-\-4 ~CRANg),,,,,,,,HUTCHISON.,.~ ~ ~ HART) t I • I I I I I I PL UHM ER. • • • • v _i..._ --L... R IL EY J •••••••• ST ANTON ••••• --iv---=-___ DISTRICT 7 SALTARELLI),. I EDGAR. I I I I I·--------BEYER) •••••••• SMITH ••••••• ________ _ HART),,,,,,,,,HEATHER,,,,, ________ __ BRICKEtU .... I .LUXEMBOURGER __ ---WIEDE1),,,,,,,NESTAND£,,,, _______ _ AGRAN ,,,,,,,,VARDOULJS,,, ________ _ GREEN ,,,,,,,,WAHNER,,,,,, ________ _ DISTRICT 11 ~MAC ALLISTER),BAILEY,,,,,, _______ ____ NESTANDE),,,,,WIEDER,,,,i, ________ __ MAC ALLISTERJ,PATTINSON,, , ____ ____ 1/17/83 JOINT BOARDS NIELSEN),,,,t,ADLER,,,,,,, ___ MAC ALLISTERJ,BAILEY,,,,,, NIELS~N),,,,,,BROWN,,,,,,,:::::::::: PERRY ,,,,,,,,CULVER,,,,,, ____ ~ SHARP •t•••••1EDGAR1••••••---___ EDWARDSJ,,,,,,FJNLAYSON,,, ___ ·~ SEIDEL),,,,,,,fRES£,,,,,,, ___ ___ JARRELLJ,,,,,,GRIFFJN,,,,, ____ ___ CRANK),,,,,,,,HANSON,,,,,, cox>t·········HART •••••••• :::::::::: HARTJ,,,,,,,,,HEATHER,,,,, KUZNllJ,,,,,,,HOLT,,,,1111 ::::::::::: CRANK ,,,,,,,,HUTCHISON,,, ____ ___ HICKS ,,,,,,,,JSLES,,,,,,, ____ ___ ODLUM •••••t••KAWANAMJ,,,, ____ ____ VANDERSJAAYl11LASZL011•••• BRICKEN),,,,,,LUXEMBOURGER::::: --- FINLEY),,,,,,,MANDIC,,,,,, AGEE),i••••••1MAURER,,,,,,:::: LACAYO ,,,,,,,MULLEN,,,,,, ___ COOPER ,,,,,,,NELSON,,,,,, __ __ WIEDER •••••t•NESTANDE,,,, __ __ MAC ALLISTERJ,PATTINSON ... __ CULVER),,,,,,,PERRY,,,,,,, HART),,,,,,,,,PLUMMER,,,,,::::: MARSHOTJ1,,,,,RELL1••••••• STANTON),,,,,,RILEY,,,,,,,:::::: --- WEDEL),, t• ••• 1ROGET1111•••--- OVERH1LT1,,,,,ROTH11••••••----EDGAR ,,,,,,,,SALTARELLI., __ __ BEYER ,,,,,,,,SMITH,,,,,,, __ __ RILEY •t•••••1STANTON,,,,, ____ ZOMMl~KJ,,,,,,SYLVIA,,,,,,::::: ___ AGRAN ,,,,,,,,VARDOULJS,,, _____ __ GREEN ,,,,,,,,WAHNER,,,,,, ______ __ !MC RO&ERTSJ,,,WEDAA,,,,,,, __ ROGET),,,,,,,,WEDEL,,,,,,,::::: __ __ NESTANOEJ,,,,,WIEDER,,,,,, ____ (CATLIN),,,,,,,WINTERS,,,,,:::: ___ OTHERS: HARPER,,,,,,~ SYLVESTER. I. __ ./ LEWIS,,,,,,, ___ CLARKE,,,,,,~ DAWES,,,,,,, __ v __ ANDERSON,,,, BUTLER,,,,,,--;r-___ BROWN,,,,,,, ____ ___ BAKER,,,,,,, ____ __ ATKINSON,,,, _____ __ YOUNG,,,,,,, ______ __ WOODRUFF,,,,::::: HOHENER,,,,, __ __ HOWARD,,,,,, __ __ HUNT,,,,,,,, __ __ KEITH,,,,,,, __ __ KNOPF,,,,,,, __ __ LE BLANC,,,, __ __ LINDSTROM. I·--LYNCH ••••••• __ __ MARTINSON,,, ___ _ PEARCE,,,,,, _____ __ EXCERPT FROM THE MINUTES OF THE ADJOURNED REGULAR MEETING OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 6 OF ORANGE COUNTY, CALIFORNIA An adjoured regular meeting of the Board of Directors of County Sanitation Districts No. 6 of Orange County, California, was held at the hour of 5:30 p.m., January 25, 1983, at 10844 Ellis Avenue, Fountain Valley, California. The Chairman called the meeting to order at 5:30 p.m. The roll was called and the Secretary reported a quorum present. * * * * * * * * * * * * * * * * Authorizing issuance of purchase order to County Assessor re data processing support services for user fee program Following a brief discussion of the data processing support required to implement the user fee program, it was moved, seconded and duly carried: That the General Manager be, and is hereby, authorized to execute an agreement with the Orange County Assessor's Office for computer progranuning and processing to provide data base information, mailing labels and parcel charge tapes relative to user fees to be collected on the property tax bill, for an amount not to exceed $50,000. STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) I, WILLIAM B. BUTLER, Secretary of the Board of Directors of County Sanitation District No. 6 of Orange County, California, do hereby certify that the above and foregoing to be full, true and correct copy of minute entries on the meeting of said Board of Directors on the 25th day of January, 1983. IN WITNESS WHEREOF, I have hereunto set my hand this 19th day of May, 1983. Secretary of the Board of Directors County Sanitation District No. 6 of Orange County, California COUNTY SANITATION DISTRICT NO. 6 OF ORANGE COUNTY, CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING January 25, 1983 -5:30 p.m. 10844 Ellis Avenue Fountain Valley, California Pursuant to the adjournment of the regular meeting of January 12, 1983, the Board of Directors of County Sanitation District No. 6 of Orange County, California met in an adjourned regular meeting at the above hour and date in the Districts' administrative offices. The Chairman called the meeting to order at 5:30 p.m. The roll was called and the Secretary reporte~ a quorum present. DIREX::TORS PRESENT: DIRD:TORS ABSENT: STAFF MEMBERS PRFSENT: '-eltaff Report on Long-Range Financing Elvin Hutchison, Chairman, Ruthelyn Plummer Roger Stanton J. Wayne Sylvester, Assistant General Manager, William H. Butler, Secretary, Thomas M. Dawes, Deputy Chief Engineer The Assistant General Manager reviewed the 5-year financial projections for the District and highlighted the anticipated shortfalls in both operating and capital funds during this period. Because of rapidly escalating costs to meet federal and state mandated requirements, revenues from current sources will be inadequate and the District faces a serious financial problem that unless resolved could jeopardize the integrity of the sewerage system. Mr. Sylvester then briefly outlined the financing alternatives available to the Board for establishment of a user fee to supplement ad valorem tax revenues to meet operating requirements and various capital financing alternatives to support District collection system and joint treatment works capital requirements. Mr. Sylvester advised the Directors that the Costa Mesa Sanitary District, the local sewerage agency which operates most of the street sewer system within District 6, is also considering establishment and implementation of a user fee in fiscal year 1983-84. Because both agencies provide similar services, they may wish to consider a joint public presentation of the proposals and the respective roles of each District in providing sewerage services to the community. The Board entered into a lengthy discussion of the merits of the various operating and capital financing alternatives as well as the procedural requirements and timetables involved in implementation of a user fee program, including holding joint public hearings with the Costa Mesa Sanitary District to assist property owners in understanding the nature and purpose of the proposed fees. Declaring intent to adopt user It was moved, seconded and duly carried: fee program and apProving implementation schedule That the Board of Directors hereby declares its intent to adopt a user fee program and to levy a special assessment (user fee) to be collected on the property tax bill beginning with the 1983-84 fiscal year; and, FURTHER MOVED: That the staff be directed to proceed with implementation of said user fee program in accorance with the preliminary timetable for development and implementation of a user fee to be collected on the property tax bill dated January 19' 1983. Authorizing issuance of purchase order to County Assessor re data processing support services for user fee program Following a brief discussion of the data processing support required to implement the user fee program, it was moved, seconded and duly carried: That the General Manager be, and is hereby, authorized to execute an agreement with the Orange County Assessor's Office for computer proqranuning and processing to provide data base information, mailing labels and parcel charge tapes relative to user fees to be collected on the property tax bill, for an amount not to exceed $50,000. Authorizing the General Manager to invite Costa Mesa Sanitary District's participation in a joint public presentation re proposed user fee programs joint public presentation of the Directing staff to draft revisions to connection fee ordinance Moved, seconded and duly carried: That the General Manager be, and is hereby, authorized to formally invite Costa Mesa Sanitary District to participate with District No. 6 in a respective user fee proposals. Following a staff report on capital financing requirements it was moved, seconded and duly carried: That the staff be, and is hereby, authorized to draft a revision to the Districts' connection fee ordinance to increase the connection fee from $250 to $500 per dwelling unit for residential properties and change the basis for commercial/industrial properties from acreage to square footage of improvements (buildings) and fix the fee at $100/1000 square feet. FURTHER MOVED: That said ordinance be submitted for the Board's consideration at the next regularly scheduled meeting on Wednesday, February 9, 1983. Adjournment Moved, seconded and duly carried: That this meeting of the Board of Directors of County Sanitation District No. 6 be adourned. The Chairman then declared the meeting so adjourned at 7:33 p.m. 1Jt&.· //~- Secretary of the BoartOf Directors County Sanitation District No. 6 of Orange County, California -2- II BOARDS OF DIRECTORS County Sanitation Districts of Orange County, Califomia DISTR/C.T, No. 6 ADJOURNED .. REGULAR.MEETING TUESDAY J JANUARY 25 J 1983 -5: 30 p IM .• (1) Roll call · (2) Staff report on long-range financial obligations: (a) Operating and Maintenance requirements (b) Capital requirements Post Office Box 8127 10844 Ellis Avenue Fountain Valley, Calif., 92708 Telephones: Area.Code 714 540-29.10 962-2411 AGENDA (3) Discussion re alternative means of funding District's long-range financial needs (4) (5) (6) Consideration of action directing staff to proceed. with selected financing alternative Other business and communications, if any . ( Consid~ration of motion to adjourn '1 ~.'l" ( 8 9 10 11 12 ll H 15 16 11 lt1 19 20 :?l 22 2J ~ 25 4:6 27 28 29 JO Jl 32 33 J.& JS 36 J7 38 39 40 41 42 43 44 45 46 47 '-.../ 50 DESCRIPTION 01'1'!RATISG FU?I> Reserves • Carry-Over From Last Year ~ Sh4re of l' Tax Allocation Fees Interest • Miscellaneous Income Other Revenue TOTAL R..~J~ TOTAL AVAILABLE FUNDING EXPEND I TURES Sh4re o! Joint Works M • 0 Collection System M & 0 and Other Oper. Other £xpenditures TOTAL ~"(Pf:SOITURES Reserves & Carry-Over to Next Year Next Year's Ory Period Funding Requirements Fund Balance or (Deficit) CAPITAL FUND(S) Reserves & Carry-over From Last Year ~ Construction Grants Fees: ~vnnection Other Sale of Capacity Rights Interest & Miscellaneous Income Other :ncome TOTAL REVENUE TOTAL AVAILABLE FUNDING EXPENDITUtm; Share of Joint Works Treatment Plant District Collection System Reimbursement Agreement Payments Other Expenditures TOTAL EX~I'!'UR!S Reserves & Carry-Over to Next Year Next Year's Dry Period Funding Requirements Fund Balance or (Oe!icitl BONO F'l.'N!> ( S ) Reserves & Carry-Over Prom Last Year ~ Tax Levy Interest & Miscellaneous Income Other InCC1111e 'l'OTAL RE\mruE 'l'OTA!. AVi\I t.AB!..f! FUND ING EXPEND I TURES Bond Principal & Interest Other Expenditures TOTAL EXPENDITURES Reserves & Carry-Over to Next Year Sext Year's Dry Period Funding Requirements Fund Bal.!nce or (Deficit) ~ (Adjusted for Inter-Fund Transfers) Reserves & Carry-Over From Last Year TOTAL R..vwmlE TOTAL AVAIU.BLE FmmING TOTAL EXPENDITURES Reserves & Carry-Over to Next Year Next Year's Dry Period Fundin<J Requirements FUND BALA!~CE OR (DEFICIT) COUNTY SANITATION DISTRICT NO. 6 ST!\rEM™T OF PROJECTED CASH PLOW FISCAL YEARS l982-8J THROUGH 1986-87 438 ,ooo 711,000 2J,OOO JJ,000 579 ,ooo 1,346,000 1,784,000 954,000 190,000 1,144,000 640,000 572,000 68,000 3,469,000 440,000 50,000 10,000 13,000 268,000 781,000 4,250,000 945,000 129,000 579,000 l,65J,OOO 2,597,000 2,597,000 29,000 26,000 2,000 28,000 57 ,000 30,000 30,000 27,000 27 ,000 -o- 3,936,000 2,155,000 6,091,000 2,827,000 3,264,000 599,000 2,665,000 640,000 782,000 26,000 4J,OOO 851,000 1,491,000 1,246,000 147 ,ooo 1,393,000 98,000 696,000 (598,000) 2,597,000 70,000 50,000 12,000 543,000 274,000 949,000 3,546,000 l,"19,000 909,000 2,328,000 1,218,000 1,218,000 27,000 26,000 2,000 28,000 55,000 29,000 29,000 26,000 26,000 -o- 3,264,000 1,828 ,ooo 5,092,000 3,750,000 1,342,000 722,000 620,000 98,000 876,000 30,000 30,000 936,000 1,034,000 1,433,000 168,000 1,601,000 (567 ,000) 800,000 (1,367,000) 1,218,000 263,000 100,000 14 ,ooo 32,000 153,000 562,000 1,780,000 2,046,000 1,150,000 3,196,000 (1,416,000) (1,416 ,000) 26,000 25,000 2,000 27,000 53,000 28,000 28,000 25,000 25,000 -o- 1,342,000 1,525,000 2,867,000 4,825,000 (l,958,000) 825,000 (2,783,000) (567,000) 981,000 35,000 1,016,000 449,000 1,648,000 192,000 1,840,000 (l,391,000) 920,000 (2,311,000) (l,416,000) 526,000 150,000 16,000 21,000 713,000 (703,000) 2,922,000 1,975,000 4,897,000 (5,600,000) (5,600,000) 25,000 35,000 2,000 37,000 62,000 32,000 32,000 30,000 30,000 -o- (1,958,000) 1,766,000 (192,000) 6,769,000 (6,961,000) 950,000 (7 ,911,000) 7/19/82 1/19/83 -~vised (1,391,000) 1,099,000 40,000 1,139,000 !252,000) 1,895,000 200,000 2,095,000 (2,347,000) l,048,000 (3 ,395 ,000) (5,600,000) 657,000 200,000 18,000 700,000 1,575,000 (4,025,000) 1,734,000 3,051,000 4,785,000 (8,810,000) (8,810 ,000) 30,000 29,000 2,000 31,000 61,000 31,000 31,000 30,000 30,000 -o- (6,961,000) 2,745,000 (4,216,000) 6,911,000 (11,127,000) 1,078,000 (12,205,000) S-Year Total 438,000 4,449,000 154,000 106,000 579,000 5,288,000 5,726,000 7,176,000 897,000 8,073,000 (2,347 ,000) 1,048,000 (3,395,000) 3,469,000 1,956,000 550,000 70,000 1,309,000 695,000 4,580,000 8,049,000 9,066,000 7,214,000 579,000 16,859,000 (8,810,000) (8,810,000) 29,000 Ul,000 10,000 151,000 180,000 150,000 150,000 30,000 30,000 -o- 3,936,000 10,019,000 13,955,000 25,082,000 (ll,127 ,000) 1,078,000 (12,205,000)