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
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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-