HomeMy WebLinkAbout1983-09-28COUNTY SANITATION DISTRICTS
OF ORANGE COUNTY, CALIFORNIA
P. 0. BOX 8 127. FOUNTAIN VALLEY. CALIFORNIA 92708
10844 ELLIS AVENUE (EUCLID OFF-RAMP. S AN DIEGO FREEWAY)
September 21, 1983
NOTJCE OF ADJOURNED REGULAR MEETING
DISTRICT NO. 1
WEDNESDAY, SEPTEMBER 28, 1983 -4:00 P.M.
10844 ELLIS AVENUE
FOUNTAIN VALLEY) CALIFORNIA
TELEPH ON ES:
AR EA CODE 714
540-2910
962 -24 1 1
Pursuant to adjournment of the re g ular meetin g of September 14, 1983,
the Board of Directors of County Sanitation District No. 1 will meet
in an adjourned meeting at the ab ove hour and date.
WHB:pi
1
II
·BOARDS OF DIRECTORS
County Sanitation Districts
of Orange County, Califomla
Post Office Box 8127
10844 Ellis Avenue
Fountain Valley, Calif., 92708
Telephones:
DISTRICT No. 1
Area Code 714
540-2910
962-2411
ADJOURNED REGULAR MEETING
WEDNESDAY, SEPTEMBER 28, 1983 -4:00·.P.M.
( 1 ) Ro 11 ca 11
AGENDA
(2) Staff report on long-range finan~ial projections
(a) Operating and Maintenance requirements
(b) Capital requirements
(3) Discussion re alternattve 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
...
COU NTY SA NI TATION DISTRIC TS
of Q RA NGE C OUNTY . C ALIFO RNIA
P.0 .BOX 8 127
10844 ELLIS AVENUE
FOUNTAIN VALLEY , CALIFORNIA 92708
(714) 540-2910
September 21, 1983 (714) 962-2 411
MANAGER'S REPORT TO DISTRICT NO. l DIRECTORS
Meeting Date: September 28, 1983, 4:00 P.M.
The purpose of this meeting is to review the Districts' long-range
financing needs and consider possible implementation of user fees and connection
fees as a means to resolve t he anticipated shortfall.
The enclosed 5-year cash flow projection indicates that during t h e 1984-85
fiscal year, the District No. 1 Operating Fund will experience a deficit of
almost $500,000 due to increases in operating and maintenance costs in both the
local collection system and in District No. l's share of the joint treatmentv and
disposal facilities. By the 1986-87 fiscal year, the District's capital funds
will also show a deficit of in excess of $1,500,000.
Also enclosed is a tentative schedule for adopting and implementing
proposed user fees and connection fees and a discussion outline of the verbal
staff report that will be made at the meeting.
COUNTY SANITATION DISTRICT NO. 1
Consideration of Long-Range Financial Requirements
DISCUSSION OUTLINE
A. Review 5-Year Financial Projections
1. Operating Shortfall -$4.6 million (See Schedule A)
2. Capital Shortfall -$2.4 million (See Schedule A)
B. Financing Alternatives
1. Operating Revenue
a. Ad valorem taxes
9/28/83
(1) Share of 1% allocation (current source = $1,150,000/year)
2.
(2) Election to authorize separate ad valorem tax levy
(four-year limit) ..
b. User fees and basis for fee (See attached Table III-1 excerpted from
Revenue Program)
(1) Hearing and separate levy of special assessment
(user charge) on the property tax bill
(2) Separate user charge collected on water purveyors
utility bill
(3) Direct billing by Districts of separate user charge
Capital Funding
Source Application Policy
a. Capital element added Improvements
to Oser Charge (B.l.b. above) Reconstruction
b. Connection Fees Expansion
c. Revenue Bonds Improvements
Reconstruction
d. Loans Expansion
e. Election to authorize Improvements
separate ad valorem tax levy Reconstruction
f. Special Assessment District Expansion
g. Grant Funds (limited) Improvements
3. Other Considerations Affecting Long-Range Funding Requirements
c. Staff Recommendation
1. Special assessment (user charge) to be collected on property tax bill
(See Schedule B)
a. Supplementals current 1% ad valorem tax apportionment
b. Data Bases -County Assessor's Property Roll
-Cities' Water Data
2. Connection Fee Proposal
a. Recommended Fee Schedule
(1) Residential:$ /unit ----
(2) Non-residential:$~ _____ 11,ooo sq. ft.
D. Timetable for Implementation of User Fee Program (See Schedule C)
E. Discussion
F. 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. Direct staff to draft a connection charge ordinance for first reading on November
9, 1983.
a. Establish a connection fee at $ per dwelling unit for residential ----properties
b. Establish the basis for commercial/industrial properties as squa~e footage of
improvements (buildings) and fix fee at $ /l,000 sq. ft.
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O t ~r !rpend1 tu:e s
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~es c c v es • C&cry--Ovc r t o Next Ye ar
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t'und BAl ~nc • oc IO<f 1c1 t)
Con s t ruct ion ~r4n :s
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Oi str1ct Collection Sy scc~
R t i~~~:se~c nt A ~rcc:c n t P3~e n ts
O t~c r ?r;>end i t~re s
Res e rves ' Car r y-Over t o ~ex ~ Ye ar
Sext Ye 4 :' s Or y Per 1~ P •.i n .:!1:19 Re quirc :1cnts
~=d B.a h .. .,ce o c ("J e tlcit )
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~~x t Ye 4r•1 Dr y Pe r iod Yu nd lnq Requireme nts
C'Olnr.'Y SAS !7ATI OS OI STR I C":" NO .
STA~.Drr OP PROJ!:C-:EO C\SH rt.OW
PISCAI. '!"EA RS 198)-!4 7MROUCH 1 987-88
865,000
l, B0,000
471 ,000
10 4,000
l , 1)2,000
2 ,857,000
1 ,722,000
2 ,067,000
277 , 000
2 ,29 4 ,000
l.42 8,000
1 ,14 7,000
281,000
9,122,000
426,000
24 0,000
277 ,00 0
907,000
l,8 50,000
9 . 972 ,000
2,704 ,000
lJS,000
1,112.000
l,971 ,000
6,001 ,000
6 ,00 1,000
88 ,00 0
62,000
9 ,000
71. 000
159,000
Sl ,000
81 ,000
78 ,000
78,000
-o-
9,075 ,000
l ,6 46 ,000
12. 721, 000
5 ' 21 4 '000
7,507,000
l,225 ,000
6,282,00 0
1,428 ,000
l, 242,000
541,000
H 7 ,000
1,910 ,000
l' 35 8 ! 000
2,178 ,000
190 ~ 000
2 ,56 8 ,000
79 0 ,000
1 ,2 8 4 ,000
( 494 ' 000 )
6,001,000
157,000
100,000
276 ,000
55,000
4 50,000
1 ,03 8 ,000
7,0 19,000
2 ,696,000
11 5 ,000
2 ,811,000
4,228 ,000
4 . 228' 000
78 ,000
71, 000
7, 000
78,00 0
15 6 ,000
80 , 000
80,000
16. 00 0
76 ,000
-o-
7 ,507,000
),0 46 ,000
10 ,5 53 ,000
5, 459,000
5,094,000
1,360,000
l, 7H ,OOO
790 , 000
l, Hl ,00 0
62),000
103 ,00 0
2,067,000
2 ,857,000
2, 733,000
20 9. 000
2,9 42 ,000
185,000 )
1, 47 1,000
11 ,556,000)
4 ,228 ,000
949. 000
100. 000
317 . 000
65,000
31 7,000
l ,H8 ,000
5 ,976 ,000
5, 188 ,000
100,000
5,288 ,000
688,000
68 8 ,00 0
76 , 000
72, 000
7, 000
79 ,00 0
155,000
78 ,000
78. 000
77, 000
77' 000
-o-
5,0 9 4,00 0
l, 894, 000
8 ,98 8 ,000
8 ,)08,000
680,000
1,5 48 ,000
1868 , 000)
(8 5,000)
1,449 ,000
715, 000
46 . 000
2,211 ,000
2,126,000
3,152 ,000
2JO, 000
J,382,000
(l,256,000)
l ! 69 l ! 00 0 .
12,90 ,000)
688,000
1 ,0 54 ,000
100 ,000
365,000
115, 000
52,000
l,6 86.000
2,3H,OOO
3,8Sl,OOO
100,000
3,951.000
(l, 577, 000)
11. 577 . 000)
77 ,000
68,000
8,00 0
76 ,000
15 3 ,000
76,000
76 ,000
77. 000
77 ' 0 00
-o-
680,000
3,97 1 ,000
4 ,653,000
7,409,000
(2, 756,000)
1,768,0 00
( 4 . 524. 000 )
11. 25 6, CO O)
1,564 ,000
824,000
50,000
2.08 ,000
l ,192 ,000
),6 10 ,000
25 0 ,00 0
). 860 , 00 0
(2 ,678,000 )
1. 91 0 . 000
14. 60 8 . 000)
(1. 577 ,000)
50 4 ,000
1 00 ,000
420,0CO
491. 000
l ,51 S,O OO
(62 ,000)
2,272,000
10 0,000
2,372 ,000
(2, '3 4,000)
11. ~0 0
67,000
7,000
74 . 000
151,0 00
74,000
74 ,000
77,0 00
77 , 000
-o-
(2 ,75 6 ,000)
4 ' 027' 000
l, 271 ,000
6 ,30 6 ,000
(5 ,0 35 ,000)
2,007,000
1 7 ,0 4 2.~00)
5-Yuc To tal
865,00 0
6, 746,000
3,175 ,0 00
450,000
l ,132,000
11,503,000
1 2,368,000
13 , 940 , 000
1 ,1 06,000
15 , 046 ! 000
(2,678 ,000)
l ,930,000
14 ,60 8,000)
8,1 22,000
l ,090 ,000
400,000
l, 618 , 000
l ,003,00 0
1 ,726,000
7,837,000
15 ,959 ,000
16 ,711,00 0
550,000
1,132 ,000
1 9,391,000
(2 ,434 ,000)
12. 434, 000)
88 ,000
34 0,000
)8 ,000
378 ! 000
389,00C
389 ,000
77 , 00 0
77 , 00 0
-o-
9 , 075, 00 0
18,586 ,0 00
27 , 661, 000
32 ,696,00 0
15 ,035 ,000)
2,007 ,00 0
17 .0 42 ,COO )
.. 't_'"l'J ._
Billing Alternative
1. Separate charge as a
special assessment on
the property tax bill.
2. Se parate charge collec~ed .
on water purveyor's utility
billing .
TABLE J "T -1
ALTERNATIVE PLANS FOR USER CHARGES WllEN
AV TAXES ARE INSUFFICIENT TO PAY OM&R COSTS
Probable Calculation Method
SCHEDULE "
Other Major Relevant Issues
1. Subdivide user classes into sub-
classes such as single family and
multi-family dwellings, office
bu1ldings, small commercial estab-
lishments, etc., and calculate flat
rates attendant to each based on
average discharges an<l system loading
from representative samplings.
1. (a) Current Statutory authority exists
2. Base charge on water voltune
(b) Requires a public hearing and separate
notice of said hearing to all property
owners.
(c) Utilizes existing assessor file as data
base and tax bill as billing tnechanism.
l101~ever, data base would require s11b-
stantial annual update at Districts'
expense and conversion to a computer
tape input by Districts to assess
charge on tax bill.
(d) Inaccuracy of Assessor's data base may
result in high percent of billing
errors and requit·e a customer se1·vice
function.
(e) Unsewered 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 established at SS/account or
1% of cpllections, whichever is great e r.
(g) Low delinquency factor.
(h) Cush flow is not spread evenly.
(i) Would satisfy notification requirement s
2. (a) Current statutory authority exists.
However, it is permissive, not mandat-
ory for the water utility.
(b) Would not require a public hearing.
(c) Would require contractual arrangements
and system modifications with approx-
imately 150 water purveyors .
(Continued)
.,~ ,.
nilling Alternative
2. (Cont'd.)
3. Dire ct billing by CSOOC
TABLE III-1( tCont'd)
Probable Calculation Nethod
3. Same as 1. above utilizing
assessor's files as th~ data
base source.
Other ~lajor Relevant Issues
(J) Would require a minimum of data h:.isc
maintenance by the Districts as this
would be autom.atical ly done by the
water utility. llowever, separate
arrangements nta)' have to be made with
the utility to reflect loadings of
small commercial establishments.
(e) Charge more directly associated with
actual use (assuming use is r e lated
to water consumption).
(f) Unsewered properties would have to be
identified and n system exception or
rebate provision made.
(g) lligh delinquency.
(h) Cost of service by utility is unknown
and would have to be negotiated or
established by code amendments .
(i) Cash flow would be more unifo1 .
(j) Would satisfy notification require-
ments.
3. (a) Current statutory authority exists.
(b) Would require installation of expen-
sive computerized billing system and
associated perscnnel and administra-
tive costs or contracting with an
outside bureau.
(c) ~lost costly method.
(d) nequires extensive Jata base main-
mnintcnance.
(e) Inaccuracy of data base source may
result in high percent of billing
errors.
(Continued)
.. .-
Dilling Alternative
3. (Cont'd.)
4. Impose a Separate
AV Tax Levy
TABLP. III-1 (Cont'd)
Probable Calculati on Method
4. Based on property value
Other Major Relevant Issues
(f) Unscw cred properties could be re f lectcd
in rate structure once identified and/
or separate provision made for rebate.
(g) Expected delinquency fa c tor would be
highest.
(h) Cash flow impact would be base d on
determination of billing frequency.
(i) Would satisfy notification requirements.
4. (a) Requires 2/3 vo ter approval
(b) Unsewered property issue would ' .ve to
be resolved
(c) Low delinquency factor
(d) Most cost effective method
(e) Cash flow not spread evenly
(f) Would satisfy notification requirem en ts
(g) Least equitable
Ill
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JlLY-AlllET Bl ffiPIJ:Mlffi-O:KBm B3
/\djrume:l ~beting to
llcview Dist. No. 1
Fimnclal Ebsiti<n &
Direct Staff tD
Initiate Use!: ard
CcmectlCJl Fee Rate
Stu:lies 9/28/83
Pl1ELTMINM'f Tlt-EIMrE FOO IE\m!l.M:NI' a? L5ffi FEE
'IO BE CDUB:rn> FOO 1964-85 Fls::J\L mAR
!OJEMJ'lHJ:X»t:lm Bl
Review Preli mi l\l[Y
Usa: Foo Ill tcrnat Ives
Ii Direct Staff tD
Make llfpropdate
Proccm ing
Arrancterreits
First lm"Jing of
Propooed O::JY1ec tl<n
Fee Ordlnanoo
msmrcr ""· l
Jl\l>U\R'f-mJIUIR¥ B4
Secnd PLOOirg/
lldoptim o f O::n-
necti<n Fee
Ordl~
Acbpt Prelirnirary
K\101-AAUL B4
Rooei~ile
Usec Fee Rep:ct
Describing Propert
Ii Fee to be Levie:!
Intra:Juoe Ord!
9/28/83
romu c
~Y\Y-JUE B4
Ccncl.ct l?Wllc
nearing a1 Usec
Foe Rep:ct ale!
Ordi11iJ1CC?
lld::l[X Ord 1rore
I
Usec Fees ale! E.stabllshlng User Ii Set Fee Sdiechle,,
Reltiew 198 3--84 BITT:_JCt/f\Jture Cash Flew
lleq.Jicenmts In llet:ermlne 1984-85 Prel.lmll\l[y
Seo.e r use ::rYI <.nnectlm Fee Lewls
Collect Data CJl SFIV'Mm'Come:claJ/
lrdlstrl~1t Fa::ilit.les in
cro 11
Preµire Prelimirary User Fee llep:xt fer I
Relriew a-.::1 DilOlssiai with llc:nrd of
Directxxs
Cootirue Negotlatlcn'.l with llfpropciab:! Agencies
to Provld? Se\.ec Use Fee nil ling Se!vlais
PtDl le It!'. kslqy'
llaar ing Schedtle
Ccnplete Flrol
User Fee Rep:rt
EIP Pm::2SSi ng to
EK tr act Data/Set
Fees
Fee/Flxlng N>lic l\ut:h:Jc lze Cal.loot:-
Hear lng Date CJl loo Via ~ter
Usec Fee Retxxt Bill
Ell' Prooesslng to Provide Fee O:lta tD
7'qalcy Pccfcrmlng 1904-65 nilling
INotloe m ~tof ~le ~~kslqE-lDHD~!B ~ ~~ :--::------------n .. u--1
I fa'.Wlrd /\cbpt:.00
B4-B5 User Rates
to nUl irq 1'qcr'cJ
El'lter 84-65 Rates
into nilling System
MEETING DATE __ s_e_p_t_._28_,_1_9_8_3_TJHE 4 :oo p.m. DISTRICTS
~~~~~~~----------~
1
DJ~TRICT 1
!CRANK) t I I. I I I I HANSON •• I I.. ~. ---GRISET J,,, •••• LYXiMRQYRQE~~
HOESTEREY) I. I I SALTARELLI •• -v-----
STANTON) •••••• WI EDER •••••• ~::::::::
DI STR JCT 2
MURPHY)•t••••1WEDAA11•••••----______ __
OVERHOLTJ,,,,,ROTH,,,,,,,,
ADLER)~ I I•.• •••. BROWN. I. I. I.::::::::=== NELSON 1i11111COOPER,,,,,, ________ _
KUZNI~ ,,,,,,,HOLT,,,,,,,,
ODLUM) ~I I I I I I I KAWANAH I I I I.:::: :::: === GRISET , •• ~ ••• LUXEMBOURGER __________ __
CULVER ,,,,,,,PERRY,,,,,,, _________ __
BEYER),,,,,,,,SMITH,,,,,,,
HOLMBERGJ,,,,,WEDEL,,,,,,,::::::::::::::::::
STANTON),,,,,,WIEDER,,,,,, ___ ---·----CATLIN),,,, ,,,WINTERS,,,,, ________ _
DISTRICT 3
EDWARDS),,,,,,FINLAYSON,,, __________ __
LACAYl), I •• I •• MULLEN ••• I. I
ADLER • ·,·, •••• I BROWN ••• · •••• :::: :::::: ==
PERRY ~,,,,,,,CULVER,,,,,, .
SEIDEL ,,,,,,,FRESE,,,,,,,::::====
RISNER ,,,,,,,GRGAS,,,,,,,
DAVfS)t,,,,,,, GRIFFlN,,,, .:::: ==::::
GRISETJ,,,,,,,LUXEHBOURGER
RELL>. It~ I. I.~ ~MARSHOTT I. I·======
COOPERJ1~•••••NElSON11••••----~-__ __ OVERHOLT ~ •• ,;ROTH,,,,,.,, _____ ~--__ __
SELVAGG-I ~~ •• I SYLVIA. I •• I·-·------
!MANDIC)i t. ~I~~ THOMASi. I •• ·--· ----
:-tOLMBERGJ. ~.~.WEDEL. I •••• ·---·-------. STANTON),,,,,,WIEDER,,,,,, __________ __
(CATLIN_),,,,,·,., WINTERS·,,,,, ______ _
DISTRICT 5
!MAURER)' I •••• I HART. I I •••• ·-------HEATHERJ,,,,,,PLUMMER,,,,, ________ __
STANTON),,,,,,WIEDER,,,,,, ________ _
DISTRICT· 6
!CRANK) t ... I I I. I HUTCH I SON •• ·------MAURER J, •••••• HART •••••••• ________ __
STANTONJ,,,,,,WIEDER,,,,,, __________ __
DISTRICT 7
MAURERJ,,,,,,,HART,,,,,,,, ___
HOESTEREYJ,,,,EDGAR,,,,,,,----:::: ____ IBEYER)t•••••••SMITH,, ,, •••--__ · __ _
.G.R_IS·ET) •• ~.·I I .LUXEMBOURGER ·-----
A-GRAN).·, •• I ... VARDO.UL Is. I·---··-----
( GRE"EN) It •• ·• I •• WAHNER. I •• I·-------(ST~NTONJ •• I I I .~IE·DER ••• I.·-----
DISTR JCT 11
(MAC ALLISTER>. BAILEY. I. I I·-----(STANTON) •••• , .WIEDER •••••• __________ _
(M~C ALLISTERJ,PATTINSON,, .__:,_. ___ _
9/28/83
JO I ~IT ROARD~
MAC ALLJSTER),BAILEY,,,,,,
ADLER)t•••••••BROWN,,,,,,,:::: ==
NELSONJ,,, •••• COOPER ••••••
PERRY),,•t•••1CULVER,,,,,,:::: == HOESTEREYJ,,,,EOGAR,,,,,,, _____ __
EDWARDi),,,,,,FINLAYSON,,,
SEIDEL • I I I ••• FRESE. I·-· •..• ·==== RISNER ,,,,,,,GRGAS,,,,,,,
DAVIS),,,,,,,,GRIFFIN,.,,.:::: ==
CRANK)~,,,,,,,HANSON,,,,,,
MAURER ,,,,,,,HART,,,,,.,,::::==
KUZNl1 ,,,,,,,HOLT,,,,,,,,
CRANK I I. I •••• HUTCHISON.···====
ODL UM t I I I I I I. KAWA NAM I I I I I
GRISETJ,,,,,,,LUXEHBOURGER ::::::
RELL),~,,,,,,,MARSHOTT,,,, LACAYO ,,,,,,,MULLEN,,,,,,::::::::::
COOPER • I I. I\ I NELSON I. I I I I MAC ALLISTERJ,PATTINSON,, .----CULVER)\,,,,, ,PERRY,,,,,,,------
HEATHERJ,,,,,,PLUMMER,,,,,-------OVERHOLTJ\••••ROTH,,,,,,,,-------
HOESTEREYJ,,,,SALTARELLI,, . ::::::
BEYER),,t•••••SMITH,,,,,,,
SELVAGGI} I. I,·, SYLVIA. I I I···====.
MANOI~), •• I I I I THOMAS •• I I. I . AGRAN ,,,,,,,,VARDOULIS,,,--::::
GRcEN ,,,,,,,,WAHNER,,,,,,
MURPHYJ•t•••••WEDAA,,,,,,,:::: == HOLMBERGJ,,,,,WEDEL,,,,,,,
STANTON),,,,i,WIEDER,,,,,,:::: ==
CATLIN) •• I I I I. w INTERS I I. I·----·.
STAF~:
OTHJ:'R<;:
HARPER,,,,,,~ __ __
SYLVESTER,,, __ _
LEWIS,,,,•,,_:__ __
CLARKE. I. I I·---·---
DAWES.·, • I I.·-----ANDERSON •••• __ .. __ _
BUTLER,,,,,, __ --·-
BROWN, I ••• ··--~AKER •• I I •• ·------KYLEf1 •• I I •• __:__ -YOUNG,,,,,,, ____ . ____
----· -
WOODRUFF I • I... . . ::::::
HOHENER,,,,,_. ___ _
HOWARD,,,,,, __ _.__
HUNT. I I. I ii I·---
KEITH •• I.·,.·-·-----KNOPF I I I I •• ·•
LE BLANC •• I.::::::::
LINDSTROM. I·---LYNCH ••••••• ______ __
MARIINSON,,, _____ __
·PEARCE •• I I I ·---·--