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HomeMy WebLinkAbout1984-09-26COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA P. 0. BOX 8127, FOUNTAIN VALLEY, CALIFORNIA 92728-8127 10844 ELLIS AVENUE CEUCLID OFF-RAMP. SAN DIEGO FREEWAY) September 20, 1984 NOTICE OF ADJOURNED REGULAR MEETING DISTRICT NO. 1 WEDNESDAY, SEPTEMBER 26, 1984 -4:00 P.M. 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA TELEPHONES: AREA CODE 714 540-2910 962-2411 Pursuant to adjournment of the regular meeting of September 12, 1984, the Board of Directors of County Sanitation District No. l will meet in an adjourned meeting at the above hour and date to consider the District's long-range financial needs. ......,. II BOARDS OF DIRECTORS County Sanitation Districts of Oranse County, Califomla · DISTRICT No . 1 ,ADJOURNED'.. REGULAR MEETING Post Office Box 8127 10844 Ellis Avenue Fountain Valley, Calif., 92708 / · Telephones: Area Code 714 540-2910 962-2411 AGENDA WEDNESDAY; SEPTEMBER.26~ 1984 -·4:00 P.M. (1) Roll Call · (2) s.taff report on long-range financial projections (a) Operations and Maintenance requirements. (b) Capital requirements (3) Discussion re alternative means of funding District's long-range financial needs (a) Operations and maintenance -special assessment (supplemental user fee) (b) Capital (i) Connection fee -expansion of service (ii) Special assessment (supplemental user fee) -rehabilitation of existing facilities and expansion of service (4) Discussion and consideration of action directing' staff to proceed.with planning and implementation of selected financing alternative(s) (5) Other business and communications, if. any (6) Consideration· of motion to.adjourn September 19, 1984 MANAGER'S REPORT TO DISTRICT NO. 1 DIRECTORS MEETING DATE: September 26, 1984 -4:00 P.M. The purposes of this meeting are to review the District's long-range financing needs, and consider implementation of user fees and connection fees as a means to resolve the anticipated shortfall in the District's funding in future years. Two 5-year cash flow projections are enclosed with the agenda material. The original projections (Schedule A-1) , included in the 1984-85 budget, indicate that the District No. 1 Operating Fund will experience a deficit of more than $1.3 million in the 1985-86 fiscal year due to increases in operations and maintenance costs in both the local collection system and in District No. l's shar e of the O&M costs of the joint treatment and disposal facilities. In the 1986-87 fiscal year, the District's capital funds will also operate at a deficit of 11¥'.)re than $3.7 million due to both increases in the District's share of capital projects for the joint facilities and more than $3.3 mill i on in transfers from the capi tal funds to the District's operati ng fund authorized by t he Board to avoid a deficit in this fund in the 1983-84 and 1984-85 fiscal years. Unless the additional revenue sources are implemented, District No. 1 wi ll have a $17.76 million shortfall by the end of 1988-89. The revised 5-year cash flow projection (Schedule A-2) presents the District's cash position if the following assumed fee schedules are implemented: Single-Family Multi-Family Commercial Est'd. Total Fee Type Residential Residenti al Ind/Govmntl Annual Fees Annual User Fee $60.00 $36.00 $42.95/1,000 $4,749,000 Square Feet One-time Connection $1,000/Dwelling $1,000/Dwelling $200/1,000 $ 428,000 Fee Unit Unit Square Feet Based on implementation of the above fee schedules the District would end fiscal year 1988-89 with a $5.2 million reserve. However, it is emphasized that these fees are for discussion purposes only as the staff's study work is not yet f i nalized. It should also be noted that both of these cash flows exclude consideration of District No. 14 . Staff is preparing preliminary estimates of the impact of the format i on of proposed District No. 14 that will be ready at the meeting. Also enclosed is a tentative revised schedule for adopting and implementing new user fees and connection fees, and a d i scussion outline of the verbal staff report that will be made at the meeting. ' • .. -_, September 21, 1984 COUNTY SANITATION DISTRICT NO. 1 Consideration of Long-Range Financial Requirements DISCUSSION OUTLINE A. Review 5-year Financial Projections 1. Operating Shortfall -$9.9 million (See Schedule A-1) 2. Capital Shortfall -$7.8 million (See Schedule A-1) B. Financing Alternatives 1. Operating Revenue a. Ad valorem taxes (1) Share of 1% allocation (current share= $1,140,000/year). (2) Election to authorize separate ad valorem tax levy (four-year limit) b.· User fees and basis for fee (See attached Table III-1 excerpted from Revenue Program) (1) Hearing and separate levy of special assessment (supplemental user charge) on the property tax bill (2) Separate supplemental user charge collected on water purveyors' utility bill (3) Direct billing by Districts of separate supplemental user charge 2. Capital Funding Source a. capital element added to User Charge (B.l.b. above) b. Connection Fees c. Revenue Bonds d. Loans e. Election to authorize separate ad valorem tax levy f. Special Assessment District g. Grant Funds (limited) Apelication Policy Improvements Reconstruction (Expansion) Expansion Improvements Reconstruction Expansion Improvements Reconstruction Expansion Improvements 3. Other Considerations Affecting Long-Range Funding Requirements a. Proposition 36 (Jarvis IV) Long-Range Financial Requirements Page Two September 21, 1984 c. Preliminary Staff Recommendations 1. Special assessment (supplemental user fee) to be collected on property tax bill (Amount to be determined at a future date upon completion of study) a. Supplements current 1% ad valorem tax apportionment b. Basis of preliminary estimates -SAEDC/preliminary results of flow metering study c. Data Base -County Assessor's Property Roll 2. Connection Fee a. Recommended Fee Schedule (1). Residential -$ ____ /Unit (2) Commercial -$ ____ /1,000 sq.ft. D. Timetable for Implementation of Long-Term Financial Program (See \..,.! Schedule B) E. Discussion F. Suggested Board Actions for Consideration 1. Direct staff to continue with planning for implementation of a special assess- ment (supplemental user fee) to be collected on the property tax bill. 2. Approve tentative timetable for implementation of supplemental user fee program. 3. Authorize the General Manager to execute an agreement with the Orange County Assessor's Office for computer programming and EDP processing 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 $75,000. 4. Direct staff to draft a revision to the connection charge ordinance for first reading on October 10, 1984. (Second reading and adoption at an adjourned meeting on October 24, 1984, at 5:00 p.m.) a. Establish connection fees at $1,000 per dwelling unit for residential properties. b. Establish the basis for commercial/industrial properties as square footage of improvements (buildings) and fix fee at $200/1,000 square feet. ( Billing Alternative 1. Separate charge as a special assessment on the property tax bill. ~ ALTERNATIVE PLANS FOR t(_ .t CllARGBS WllBN AV TAXES ARE INSUFFICIENT TO PAY OM&R COSTS Probable Calculation Method ( Other Major Relevant Issues "'J • .er .} ,. 1. Subdivide user classes into sub- classes such as single family and multi-family dwellings, office buildings, s~all commercial estab- lishments, etc., and calculate flat rates attendant to each based on average discharges and system loading from representative samplings. 1. (a) Current Statutory authority exists · (b) Requires a public hearing and separate notice of said hearing to all property owners. (c) Utilizes ~xisting assessor file as dat' base and tax bill as billing mechanism. However, data base would require s1}b- 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 require a customer service function. (e) Unsewered properties could be reflectet in rate structure once identified and/. or separate provisions made for rebnte~ (f) Maximum charge for tax collector's service ls established at $5/account 01 1\ of cpllectJons, whichever ls greate1 (g) Lmf delinquency factor. (h) Cash flow ls not spread evenly. (l) Would satisfy notl flcnt ion requl rement! 2. Separate charge collected.~ 2. Base charge on water volume 2. (a) Current statutory author it)' exists. However, it is permissive, not mandat-: ory for the water utility. on water purveyor's utility billing. (b) Would not require a public hearing. (c) Would require contractual arrangements and system modifications with approx- imately 150 water purveyors. (Continued) ..... H .... • °' ( Billing Alternative 2. (Cont'd.) l. Direct bl lling by CSDOC ( Tl\DLB 111-1 (Cont'd) Probable Calculation Method 3. Same os J. above utilizing assessor's files as the data base source .. ( v.:-1 Other f.lajor ltelevont Issues _____ _ (d) Would require a minimum of clnta,b3sc n10Jntenance by the Districts n; this Hould be automnt lcn 11 y done hy the "'" ter uti 11 ty. llo,·rnvcr, s~par:1 le nrrnngements 1nny hnve to be m:ulc with the utility to reflect londlngs or sma 11 coanmerc la l est nb 11 slunen ts. (e) Chnrge more 'llrcclly nssocinte<I wl th actual use (assuminr. use is related to water consumptio1J). (f) Unset.,ered prnpert ies Hould have to be identified and a system exception or rebate 1novislon mn,le. (g) lllgh delinquency . (h) Cost of service by utility ls unknown nnd would have to be negot latc<I or · established by code nmendmcnts. (i) Cash flow would be more uni form. CJ) Would sntl s fy notlf icat.lon re<1u IJ·e- mcnts. l. (a) Current statutory authority exists. (b) S1ould require Installation of expen- sive co1nputerhed bl 11 lng system-and assoclotcd personnel and ndrninlstrn- tlve costs or contracting with on outside bureau. (c) Most costly method. (d) Rec1ulres extensive data base mnln- malnlenance. (e) Inaccuracy of data base source mny result in higll percent of bl 11 lng errors. (Continued) ,, .. .-. H •-t • ... . ( Dilling Alternative J. (Cont'd.) 4. Impose a Separate AV Tax tevy ( TADLn 111-1 (Cont 0 d) Probable Caiculation ~tethod ' 4. Based on pro1>erty value (. Other Major Relevant Issues (f) Unsewere<i properties could be tefl~cted in rate structure once identified and/ 01· sepurnte provision anaJc for rebate. (g) expected delinquency fnctor would be highest. (h) Cash flow impact would be hosecl on Jetennlnntlon of bi l llng frequency. (i) Wou Id sat ls fy not if icnt ion rec1u l rcrnl•nt ~- 4. (a) Requires 2/l voter approval (b) UnseHered prnperty issue ..,oulJ have to he resolved {c) Low"dellnquency factor (d) Most cost effect.he rnethoJ (e) Cash flow not sprea~ evenly (f) Would satisfy notification requirements (g) Lenst equitable (h) ~-year sunset clause ~> ''1. ·~ 4 5 8 9 10 ll l2 l3 u 15 16 l7 u l9 20 ll ll 23 l4 25 26 27 28 29 30 ll 32 33 H 35 36 37 38 39 40 41 u 43 DESCRIPTIOll OPEAATl SG FUND lleserves ' Carry-Over Froa Last Year ~ S~re of U Tax Allocation Fees Interest ' Kisc:ellan.ol.15 lnc:oae Otber llevenue TOr>.L REVENUE TOt1J. A VU L>JU.E FONDING EXPENDITURES S~re o! Joint Works K 6 0 Collection Systea K ' 0 and Otber Oper. Otbu Expenditures TOTAL EXPENDITURES Reserves 6 Carry-Over to Next Year llet Year's Dry Period Funding Req\lireaenta Fund Balance or (Deficit) CAPITAL FUND (S) ReMrves ' Carry-Over Froa Last Year ~ Construction Granta Fees : Connect.ion Otber Sale of C&pacity R19ht• Interest ' Kiscellan.o1.1s ln<Xlllle Otber l nc:oae TOt1J. REVENO! TOTAL AVAI IABI.E F1JllD ING EXPDo"DITURES Share of Joint Works Treataent Plant District Collection Systea R.eillburseaent A9r..->t Pay.ents Other Expenditures TOTAL UPEND IT'CllS Ruerves ' C&rry-Over to llext Yur Next Year's Dry Period Fundi119 Require,,..nts Fund Balance or (Deficit) BCtlD P"UND !S) Reserfts ' Carry-Over rroa Last Yur ~ TU Levy Interest ' Miscellaneous lnc:aae 6tbu tr>COM TOTAL REVENUE T0VJ. AVAIIABU: P'IJNDDIG EXPESDITtlRJ!:S Bond Pr i ncipal ' Interest Otbu !xpenditures TOTAL !:XP£11DITURES Reserves ' Carry-Over to Next Year Next Year's Dry Pe riod Funding Requireaents Fund Balance or (0.f icit) ~ (Adjusted for lnter-rund Tr&l\Sf ers) Reserves ' Carry-Over ?roo Last Year TOTAL REVENUE TOTAL AVAII.\BIZ ?UNDINC TOTAL !Xl'!:Nll ITUR£S "-••rYes ' Carrr-ov-r t o llex t Year Next Year'• Dry Period Funding Requireaents f'tJllD BAIJ.NC! OR (DE?ICIT) SCHEDULE A-1 COUN'l'Y SANITATION DISTRICT NO . STATEMENT OP PROJECTED C>.SH FLOW FISCAL YEARS 1984-85 THROUGH 1988-89 l,394,000 l, U0,000 332,000 lll,000 2.202,000 3,78 5,000 5,179,000 2, 771 ,000 275 ,000 3. 046, 000 2, 133,000 1,523,000 610, 000 7,354,000 572,000 199,000 39,000 664 ,ooo l,474,000 8,828,000 2, 774,000 175,000 2,202,000 5,151,000 3,677 ,000 0 3, 677' 000 79,000 66,000 9,000 75,000 154, 000 80,000 80,000 74,000 74' 000 0 8,827,000 3,ll2,000 ll, 959' 000 6,075,000 5,884,000 l,597,000 4,28 7 ,000 2 , ll3,000 l, 231, 000 378,000 127 ,ooo l c 736 c 000 3, 869, 000 3,186,000 275,000 3, 461, 000 408,000 l, 730,000 !l.322,000 ) 3,677,000 168,000 100,000 229,000 380,000 208 ,000 l,085,000 '. 762,000 4,179,000 100,000 4,279,000 483, 000 0 483, 000 ", 000 77,000 6,000 83,000 157,000 78,000 78,000 79 ,000 79,000 0 5,884,000 2,90 4,000 e, 1aa,ooo 7,818,000 970,000 l,809,000 (839,000) 40 8,000 l,329,000 429,000 l,758,000 2,166,000 3,664,000 275,000 3,939,000 (l, 773,000) 1,970,000 (Jr 743,000) 48 3 ,000 870,000 100,000 263,000 ' 68 ,000 l,301,000 1,784 ,000 5,162,000 100,000 5,262,000 (3,478,000) 0 (l,478,000) 79, 000 67,000 6,000 73, 000 152,000 76,000 76,000 76,000 76 ,ooo 0 970,000 3, ll2 ,000 4,102,000 9, 277 ,ooo (5 ,175,000) 2 ,046,000 (7,22 1,000) (l, 773,000) l,435,000 o o , 00 0 l,925,000 152,000 4,2u,ooo 275,000 4,489,000 (4 ,337 ,000 ) 2,244,000 (6,581,0001 p ,47 8 ,000) 870,000 100 ,000 302,000 80,000 l,352,000 (2,126,000) s ,028,000 100,000 5,128,000 (7,254,000) 0 (7, 254 ,0001 76 1 000 66,000 6,000 72 g 000 148 g 000 74 I 000 74 ,ooo 74,000 ",000 0 (5,175,0001 3,349,000 (l,826,000 1 9 g 691, 000 (ll , 517 ,0001 2,Jl 8 ,000 (13,83 5 ,000) (4, 337 ,0001 1,550,000 559,000 2,109,000 12,221 ,0001 4,846,000 275,000 5 1 121,000 (7,349,0001 2,560 ,000 (9,909,0001 (7 g 254 g 000 I 870,000 100,000 347 ,ooo l,2u,ooo 2,531,000 (4,723 ,000) 3,023,000 100,000 3 1123,000 (7,846,000) 0 17,au,0001 74 ,ooo 65,000 6,000 n ,ooo 14 5 ,000 73,000 n,ooo 72,000 72,000 0 (ll,517,0001 4,711,000 (6,806,0001 B1 Jl7,000 (15,123,000) 2g632g 000 111, 755 1000 1 6/19/84 5-Year Total 1, 394 ,ooo 6,685,000 2,ue,000 238,000 2,202,000 ll, ll3,000 l2,707g000 18,681,000 1,375,000 20,056g000 (7,349,0001 2 1 560 1 000 (9,909,000) 7,354,000 3,350,000 400,000 1.,340,000 1, 781,000 872,000 1,10,000 15g097g 00 0 20,166,COO 575,000 2,202,000 22,943,000 (7,846,000) 0 17,u6 1 0001 79,000 341,000 33,000 374 ,000 453,000 381,000 311,000 72 ,000 12,000 0 8,827 ,ooo 17,228,000 26,055,000 41,178,000 (15, 123,000) 2,632 ,000 (17,75 5,0001 a ~ 10 u l2 ll l4 lS l6 17 lS l9 20 2 ' 2J H 25 20 27 28 29 30 3l 32 33 H 35 l6 l7 DES Clll l'TIOH OP ~V.TISG !'OID Reserves ' Carry-Over Prom Las.t Year ~ Sb&ro ot l\ Tax Allocation Pees Interest ' Miscellaneous Income Otber Revenue TOTAL ~ TOTAL AVAILABLE! FUNDING UPENDITUR£S Shara ot Joint Works M ' O Collection System M ' O and Otber Oper. Otller t:xpenditures TOTAI. &Xl'ENDITUR£5 Reserves ' Carry-Over to Next Year Set Year's Ory Period Pundinq Require .. nts fl.ltld S.dance or (Deficit) .:AP IT AL PIJND (S ) Reserv•• ' Ca.cry-Over Prom Last Year REVEm1l! Construction GraJ\ts t'ffS: Connection Other Sa.le ot Capacity Riqhta Interest ' !Uscellaneous Income Otber Income TOTAL REVENUE TOTAL AVAILABLS l'tJllDING ~'C?CID ITt!RES Share of Joint Works Treatment PlaJ\t District Collection System Reimb<lrse.ment AqreeJDel\t Paywients Otller E%pendituru TOTAL EXPE!iDITIIR£S aes .. rves ' Carry-Over to Nel<t Ye.ar Sut Year's Ory P<!riod Pundinq Require...,nts Pund Balance or (Deficit) BOID FUND(S) Reserves ' Carry-Over Prom Last Year ~ Ta.x Levy Interest ' Miscellaneous Incoa>e Other Inco.,. TOTAL RSVENtll! TOTAL AVJJUJIL.!! PUNDING £XP£)11)ITUR£5 Bond Principal ' Interest Other c:xp.ndi turea TOT AL EXPEND ITIIRES Reserves ' Carry-Over to Next Year Sext Yu.r's Ory P<!riod Pundin9 Requirements l'l.lnd Balance or (Deficit) ~ (Adjusted tor Inter-Pund Transfers) Res erves ' Carry-Over PtOll Last YHr TOTAL REVE:SUE TOTAL AVAILABLE ?UNDING TOTAI. EXPENDITURES Reserves ' Carry-Over to Next Year Sel<t Yea.r's Dry Period Pundinq Requirements roNll 8>.LANC:& OR ( DEl' ICIT) SCHEDULE A -2 COU!n'Y SAllITATIOH DISTRICT NO . l S TATEHE!IT OP PROJECTED CAS B PLOW • PISCAL YEARS 1984-85 THROUGH 1988-89 l, 394 ! 000 l, 140 ! 000 332,000 lll,000 2,202,000 3,785,000 S,179,000 2, 771,000 275,000 3,046,000 2,133,000 l,523,000 610,000 7,354,000 572,000 214,000 199,000 39,000 675,000 l,699,000 9,053,000 2, 774,000 l75,000 2,202 ,000 5,151,000 3,902,000 0 79,000 66,000 9,000 75,000 154,000 80,000 80,000 74 ! 000 74,000 0 8,827,000 3,357,000 12,184,000 6,075,000 6,109,000 1,597,000 4,512,000 2,133,000 1,231,000 5,127 ,000 421,000 6, 779 ,000 8,912,000 3,186,000 230,000 3,416,000 5,496,000 l,708,000 3,788,00 0 3,902,000 168,000 428 ,000 229,000 380,000 249 ! 000 l,454,000 5,356,000 4 ,179,000 100 ! 000 4,279,000 l,077,000 0 l, 077 ,000 74,000 77 ! 000 6,000 83,000 157,000 78,000 78,000 79 ,000 79,000 0 6,109,000 8,316,00 0 14 ! 425,000 7 ! 773' 000 6,652,000 1,787,000 4,865,000 5,496,000 l,329,000 429,000 506,000 2,264,000 7,760,000 3 ,664,000 264 ,ooo 3,928,000 3,832,000 1,964,000 1,868,000 l, 077,000 870,000 428,000 5,040,000 68,000 174 ,000 6,580,000 7 ,657 ,000 5,162,000 100,000 5,262,000 2,395,000 0 2,395,000 79,000 67,000 6,000 73 ,000 152,000 76,000 76,000 76,000 76,000 0 6,652 ,000 8,917,000 15,569,000 9,266,000 6,303,000 2 ,040 ,000 4 ,263 ,000 3,832,000 l,435,000 2,893,000 404,000 4,732,000 8,564,000 4 12141 000 303,000 4,517,000 4,047,000 2,758,000 l,289,000 2,395,000 870,000 428,000 2,705,000 80,000 197 t 000 4,280,000 6,675,000 5 1 028,000 100,000 5,128,000 l,541,000 0 1,547,000 76,000 66,000 6,000 72,000 148,000 H,000 74,000 74,000 H,000 0 6,303,000 9 ,084 ! 000 15,387,000 9 ! 719 ,000 5,668,000 2,832,000 2,836,000 4 ,047 ,000) l,550,000 5,393,000 564,000 7,507,000 11,554,000 4,846,000 348,000 5,194,000 6,360,000 2,597,000 3,763 ,000 l, 547 ,000 870,000 428,000 347 ,000 l,214,000 149,000 3,008,000 4,555,000 3,023,000 100,000 3,123,000 l,432,000 0 1,432,000 74,000 65,000 6,000 71,000 145 ! 000 73,000 73 1 000 72 I 000 72,000 0 5,668,000 10,586,000 16,254,000 8,390,000 7,864,000 2,669,000 5,195,000 9/21/84 5-Year Total l,394,000 6,685,000 U,l74,000 2,006,000 2,202,000 25,067,000 26,461,000 l8,68l,OOO l,420,000 20,lOl,OOO 6,360,000 2,597,000 3,763,000 7, 354 ,000 3,350,000 l,926,000 S,520,000 l,781,000 1,444,000 l7,021,000 24, 375 ,000 20,166,000 575,000 2,202,000 22,943,000 1,432,000 0 114321 000 79,000 341,000 33,000 374,000 453,000 381,000 381,000 72,000 72,000 0 8,827,000 40,260,000 49,087,000 41, 223,000 7,864,000 2,669,000 5,195,000 "' c 0 ·ri j.J u < 'ti ... "' 0 IQ c 0 ·ri j.J u < .... .... "' j.J (/) PRiLIMINllRi Til£lJ\8lE KR lEVll£DfNr CF lEER FEE ro DE OUJ!ClFD FCR 198!;Hl6 FJ50ll.. ~ DJSTRicr m. l CNDilC N:!l'lVll'.IE3 FOCH FRlOO KNlH3 SfP1J:M3m -~ 84 NMM1ER -1HBEm 84 JNU\Rr -PmlU\R:i 85 MllOI -APRIL 85 l\djoomed Heetirg To Revi&1 Dist. No. 1 Finaroial Posltim & Preliminary User/ On-iectim Fee Rates & Direct Staff To O:nplet.e Prooess1ng Arran:ienmts 9. First Rea:l1ng Of Ptqxlstd Cknlectim Fee Ocdiranoe lD. Secx:n:i Read in;/ M:lptim of a:mect- im Fee Ocdiranoe Ard Agreerents With CitiES oc 'l\lst.lJV' Saita Ara To Olllect Fee3 ll/14. Rev iew/lld'.:t>t Pl.bl.lo tb::ksh::{¥ttear 1ng Sdlecllle ll/14184 1 ~~1 UIZ/84 s taf f,,itasul t:alt Cl:nt.i.rue ' O::Jrp.lete OJstmer Flew Metering Sb.dy Of Sffl/ ~fl\lt&I/Go.lermeltal Facilities In Pnpll"e Preliminacy User Fee Rep:>ct Foe Revl&1 And Dlarussloo Dist. No. 1 9, Initiate Ne:ptiatims With Oa.nty Assesror To ~lq> User Data Base/ Pro.ride ElP Servioos To Set,/llill User Fees Fer FY 85-86 2m /84 Review 1904-85 a.rlget,tl'uttxe cash Flcw Req.Jirerents To Deter1lline Preliminary 1984-85 On-iectim Fee & 198S-86 User Fee LeYels 9. With 8:lard Of Directors O:nt..l.rue & O:nplet.e Necptiatims With Oa.nty Assessa: To DeYelcp User Data Base/Pro.Tide ElP Secvioes To set;nill User Fees Fa: Fl 8S-86 EIP Prooessirg To Extract Data/ EMlluate Re.ierues Generated ~ Prelimlnary User Fee Rates EIP Processing To Issue Notices To Property CMlers Ae Prop;l8ed Fees ~~85 Receive/File User Fee Repxt Desc:rl- birg Prqlerty & Fee To Be Levied 11\R 85 Introdioe Ordlnaroe EstllblUtairg User Fee/Fixlrq 1'l.tllic Hearing Date On User Fee ReP:xt Ml\R 85 I Notioe & O:rdJct Of P\bllo ta:ksh:Jps To Dl..soJss J Pcqiooed Sewer Use FEe8 .JNHNOt 85 Cl:n:b:t Pl.blio Hearirg On User Fee Repxt Ard Or:dlnaroe l\PR 85 ~Ordinance ' Set Fee Schec}- ul.e,hwtOOrlze OlllectiOl Via Tax Bill l\PR 85 &JIEIUB B 9/28/83 Jerised 9/26/84 H\Y -JlR 85 Fttward M:lpted 85-86 User Rates To CJa.nty 1.s9esooc f.t.Y 85 EIP Prooes.91ng To Deliver ~/)ltrlit Generate User Fee Trail TO CJa.nty Tl!lle Fer CJa.nty Aullt:xx;t:hitroller Tax R::lll Bll11ng Foc Prooess1ng H\Y 85 Qit:o 115-86 Tax Bill JtN 85 MEETING DATE Sept. 26, 1984 TIME 4:00 p.m. DISTRICTS _ _.1 _______ _ ----~~~-------------------------------0 IS TR IC T 1 JOINT BOARDS !CRANK),,,,,,,,HANSON,,,,,, ____ LUXEMBO RGER),GRISET,,,,,, ____ KENNEDY~ •• ,,,,SALTARELLI,, ____ WIEDER},,,,,,,STANTON,,,,, ____ DISTRICT 2 MURPHY},,,,,,,WEDAA,,,,,,, _______ ____ OVERHO~TJ,,,,,ROTH,,,,,,,, ________ ____ NEWTON},,,,,,,BUCK,,,,,,,, ________ ____ NORBY},,,,,,,,CATLIN,,,,,, ________ ____ NELSONJ,,, •• ,.cooPER •••••• ____ --------LUXEMBOURGERJ,GRISET •••••• ________ ____ MAHON~Y},,,,,,HOLMBERG,,,, ________ ____ ODLUM ,,,,,,,,KAWANAMI,,,, ________ ____ ADLER ,,,,,,,,NEAL••••••••----____ ____ CULVERJ,,,,,,,PERRY,,,,,,, ________ ____ BEYER),,,,,,,,SMITH,,,,,,, ________ ____ WIEDERJ,,,,,,,STANTON,,,,, ________ ____ DISTRICT 3 OVERHOlT),,,,,ROTH,,,,,,,~----____ ____ COOPER ,,,,,,,NELSON,,,,,, ________ ____ RISNER ,,,,,,,BROWNELL,,,, ________ ____ NORBY),,,,,,,,CATLIN,,,,,, ________ ____ PERRY),,,,,,,.CULVER,,,,,, _______ ____ SEIDE~J,,,,,,,FRESE,,,,,,, ________ ____ DAVIS),,,,,,,,GRIFFIN,,,,, _____ _ LUXEMBOURGER J I GR I SET I •. I • I ·---MAHONEY),,,,,,HOLMBERG,,,, _______ ____ ADLER},,,,,,,,NEAL11••••••----____ ____ FINLAYIONJ OLSON ••••••• ____ --------MULLEN ,,,,,,,PARTIN,,,,,, ________ ___ WIEDER ,,,,,,,STANTON,,,,, ________ ____ LANDER ,,,,,,,SYLVIA,,,,,, ________ ____ MANDIC ,,,,,,,THOMAS,,,,,, ____ ~~ (SIRIANIJ,,,,,,WEISHAUPT,,, _________ ____ DISTRICT 5 !MAURER),,,,,,,HART,,,,,,,, ________ ____ HEATHEffJ,,,,,,PLUMMER,,,,, ________ ____ WIEDER},,,,,,,STANTON,,,,, ____ ____ DISTRICT 6 !SM ITH)~ I ••• I I I WAHNER I •• I.·-MAURER ,,,,,,,HART,,,,,,,, ____ WIEDER ,,,,,,,STANTON,,,,, ____ ____ DISTRICT 7 BEYER),,,,,,,,SMITH,,,,,,, ________ ____ MAURERJ,,,.,,,HART,,,,,,,, _______ ____ KENNEDY},,,,t,EDGAR,,,,,,, ________ ___ LUXEMBlURGERJ,GRISET,,,,,, _______ ____ MILLER ,,,,,,,SILLS,,,,,,, ________ ____ WIEDER ,,,,,,,STANTON,,,,, _______ ____ GREEN),,,,,,,,WAHNER,,,,,, ________ .__ DISTRICT 11 !MANDIC~),,,,,,,BAILEY,,,,,, _______ ____ MANDIC ,,,,,,,PATTINSON,,, ________ ____ WIEDER ,,,,,,,STANTON,,,,, ________ ____ 9/13/84 (MANDIC),,,,,,,BAILEY,,,,,, ____ ____ IRISNER),,,,,,,BROWNELL,,,, ___ ____ NEWTON),,,,,,,BUCK,,,,,,,, ____ ____ NORBY),,,,,,,,CATLIN,,,,,, ____ ____ NELSONJ ••••••• COOPER •••••• ____ ----PERRY},,, ••••• cuLVER •••••• (KENNEDY),,,,,,EDGAR,,,,,,,-------- SEIDE~),,,,,,,FRESE,,,,,,,:::::::: DAVIS),,,,,,,,GRIFFIN,,,,, ____ ____ LUXEM80URGERJ,GRISET,,,,,, ____ ____ CRANK},,,,,,,,HANSON,,,,,, ____ ____ MAURERJt•••••1HART,,,,,,,, ____ ____ MAHON~YJ,,,,,,HOLMBERG,,,, ____ ____ ODLUM ,,,,,,,,KAWANAMI,,,, ____ ____ ADLER ,,,,,,,,NEAL,,,,,,,, ____ ____ COOPERJ,,,,,,,NELSON,,,,,, ____ ____ FINLAYSONJ,,,,QLSON,,,,,,, ____ ____ MULLEN),,,,,,,PARTIN,,,,,, ____ ____ MANDIC),,,,,,,PATTINSON,,, _____ CULVER),,,,,,,PERRY,,,,,,, ____ ____ HEATHERJ,,,,,,PLUMMER,,,,, ____ ____ OVERHOLTJ,,,,,ROTH,,,,,,,, ____ ____ KENNEDY),,,,,,SALTARELLI,, ____ ____ MILLER)),,,,,,,SILLS,,,,,, •----____ BEYER 1 .,,,,,,SMITH,,,,,,, ____ ____ WIEDER ,,,,,,,STANTON,,,,, ____ ____ LANDER ,,,,,,,SYLVIA,,,,,,~ ____ MANDIC ,,,,,,,THOMAS,,,,,, ____ ____ GREEN/SMITHJ,,WAHNER,,,,,, ____ ____ MURPHY),,,,,,,WEDAA,,,,,,, ____ ____ SIRIAHIJ,,,,,,WEISHAUPT,,, ____ ____ mEE: SYLVESTER,,, ____ ____ CLARKE,, , , .• , ____ ____ DAWES,,,,,,, ____ ____ ANDERSON,,,, ____ ____ BUTLER,,,,,, ____ ____ BROWN,,,,,,, ____ ____ BAKER-,,,,,•·•-----KYLE,,,,,,,, ___ ____ YOUNG,,,,,,, ____ ____ VON LANGEN ____ ____ WINSOR,,,,,, ____ ____ STREED,,,,,, ____ ___ OTHERS: WOODRUFF,,,, ____ ____ ATKINS,,,,,, ____ ____ HOHENER,,,,, ____ ____ HOWARD,,,,,, ____ ____ HUNT,,,,,,,, ____ ____ KEITH,,,,,,, ____ ____ KNOPF,,,,,,, ____ ____ LE BLANC,,,, ____ ____ LINDSTROM,,, ____ ____ LYNCH,,,,,,, ____ ____ MARTINSON,,, ____ ____ PEARCE,,,,,, ____ ____ EXCERPT FROM THE MINUTES OF THE ADJOURNED REGULAR MEETING OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 1 OF ORANGE COUNTY, CALIFORNIA An adjoured regular meeting of the Board of Directors of County Sanitation District No. 1 of Orange County, California, was held at the hour of 4:00 p.m., September 26, 1984, at 10844 Ellis Avenue, Fountain Valley, California. The Chairman called the meeting to order at 4:00 p.m. The roll was called and the Secretary reported a quorum present. * * * * * * * * * * * * * * * * DISTRICT 1 Moved, seconded and duly carried: Adjournment That this meeting of the Board of Directors of County Sanitation District No. l be adjourned to 2:00 p.m., October 3, 1984, for a second reading of proposed Ordinances Nos. 105 and 106. The Chairman then declared the meeting adjourned at 5:30 p.m., September 26, 1984. STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) I, RITA J. BROWN, Secretary of the Board of Directors of County Sanitation District No. 1 of Orange County, California, do hereby certify that the above and foregoing to be a full, true and_ correct copy of minute entries of the meeting of said Board of Directors on the 26th day of September, 1984. IN WITNESS WHEREOF, I have hereunto set my hand this 26th day of September, 1984. Secretary of~ Board of Directors County Sanitation District No. 1 of Orange County, California ,, 7'• I • COUNTY SANITATION DISTRicr NO. 1 OF ORANGE CDUNTY, CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING September 26, 1984 -4:00 P.M. 10844 Ellis Avenue Fountain Valley, California Pursuant to the adjournment of the regular meeting of September 12, 1984, the Board of Directors of County Sanitation District No. 1 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 4:00 p.m. In the absence of Rita J. Brown, Secretary, Chairman Hanson appointed William H. Butler as Secretary pro tem. The roll was called and the Secretary pro tem reported a quorum present. DIRECTORS PRESENT: DIRECTORS ABSENT: STAFF MEMBEBS PRESENT: OTHERS: Staff Report on Long-Range Financing Requirements Robert Hanson, Chairman, Dan Griset, Don· Saltarelli Roger Stanton J. Wayne Sylvester, General Manager, William H. Butler, Secretary pro tem, Thomas M. Dawes, Jeff Esber Thomas L. Woodruff, General Counsel, Conrad Bohener, Phil Stone The General Manager presented an overview of the District's financial position. Be pointed out that during the 1984-85 budget deliberations in June and July the Boards had reviewed the Districts' five-year cash flow projections which forecast that the District will experience a revenue shortfall over the next five years of $17.6 million. When the budget was adopted, the Board had directed staff to study alternatives for meeting the District's long-range financial needs and report back. The revenue shortfall is primarily a result of escalating costs of providing sewerage services because of the higher levels of treatment required by the Federal and State regulatory agencies to comply with the Federal Clean Water Act and the State of California Ocean Plan. Mr. Sylvester stated that in the event the Districts do not receive the pending ocean waiver, the financial situation will deteriorate even further. It was also pointed out that during the 1983-84-85 fiscal years District No. 1 would dip into reserves for a total of $3.3 million to pay the increased costs of operating and maintaining the new advanced treatment facilities constructed to comply with the laws, and that it would be necessary to consider instituting a system of fees for users to pay for their sewerage services to supplement ad valorem taxes which are now inadequate. --> 9/26/84 .. • Mr. Sylvester presented a detailed review of the five-year cash flow projections and outlined alternative methods of financing the District's capital and operating requirements to eliminate the projected shortfall over the next several years. The Director of Finance then presented a series of revised cash flows to highlight the District's anticipated financial position if proposed alternative financing methods were implemented to generate the funds necessary to finance the District's sewage collection, treatment and disposal requirements. The Directors then entered into an extended discussion regarding the merits of the available financing methods and the anticipated levels of fees necessary to put the District on a fiscally sound basis over the long term. The Board concluded that immediate implementation of a financial program establishing a schedule of one-time connection fees for new development to pay for facilities expansion, and an annual user fee to pay for operation and maintenance costs including rehabilitation and replacement of facilities, is necessary to maintain the fiscal integrity of the District. The proposed fees are as follows: Single-Family Multi-Family Commerical Effective Fee TYpe Residential Residential Ind/Govmntl Date One-time Connection $500/Dwelling $500/Dwelling $100/1,000 1/01/85 Fee Unit Unit Square Feet Annual Oser Fee $60.00 $36.00 $42.,95/1,000 7/01/85 ~quare Feet Introduction and First Reading of Proposed Ordinance No. 105 Moved, seconded and unanimously carried: That Ordinance No. 105, An Ordinance of the Board of Directors of County Sanitation District No. 1, Amending Ordinance No. 104, Establishing Sewer Connection Charges for Ose of District Sewerage Facilities, be read by title only, and, FORTBER l«>VED: That reading of said ordinance in its entirety, be, and is hereby, waived. Following the reading of Ordinance No. 105 by title only, it was then moved, seconded and duly carried: That Ordinance No. 105, An Ordinance of the Board of Directors of County Sanitation District No. 1 Amending Ordinance No. 104 Establishing Sewer Connection Charges for ose of District Sewerage Facilities, be introduced and passed to the second reading on October 3, 1984, at 2:00 p.m. at the District's administrative offices. -2- 9/26/84 ...... · ;,., Introduction and First Reading of Prop()sed Ordinance No. 106 Moved, seconded and unanimously carried: That Ordinance No. 106, An Ordinance of the Board of Directors of County Sanitation District No. 1, Establishing Sanitary Sewer Service Charges, be read by title only, and1 FURTHER M:>VED: That reading of said ordinance in its entirety, be, and is hereby, waived. Following the reading of Ordinance No. 106 by title only, it was then moved, seconded and duly carried: That Ordinance No. 106, An Ordinance of the Board of Directors of County Sanitation District No. 1, Establishing Sanitary Sewer Service Charges, be introduced and passed to the second reading on October 3, 1984, at 2:00 p.m. at the District's administrative offices. Adjournment Moved, seconded and duly carried: That this meeting of the Board of Directors of County Sanitation District No. 1 be adjourned to October 3, 1984, for a second reading of proposed Ordinances Nos. 105 and 106. The Chairman then declared the meeting adjourned at 5:30 p.m., September 26, 1984. -3-