HomeMy WebLinkAbout1985-05-29COUNTY SANITATION DISTRICTS
OF ORANGE COUNTY, CALIFORNIA
P. 0. BOX 8127, FOUNTAIN VALLEY, CALIFORNIA 92728-8127
10844 ELLIS AVENUE CEUCLID OFF-RAMP. SAN DIEGO FREEWAYl
May 22, 1985
NOTICE OF ADJOURNED REGULAR MEETING
DISTRICT NO. 1
WEDNESDAY, MAY 29, 1985 -4:00 P.M.
10844 ELLIS AVENUE
FOUNTAIN VALLEY, CALIFORNIA
Pursuant to adjournment of the regular meeting of May 8, 1985,
the Board of Directors of County Sanitation District No. 1 will
meet in an adjourned regular meeting at the above hour and date
to consider revisions to their long-range financial program.
. TELEPHONES:
AREA CODE 714
540-2910
962-2411
Jr, ,..,BOARDS OF DIRECTORS
If County Sanitation Districts
II of Orange County, California
Post Office Box 8127
10844 Ellis Avenue
Fountain Volley, Calif., 92708
Telephones:
II
DISTRICT No. 1
·ADJOURNED· REGULAR MEETING
WEDNESDAY, MAY 29.,· 1985 -4:00 P.M-.
Area Code 714
540-2910
962-2411
AGENDA
(1) Roll call
(2) Consideration of items re long-range financial program:
(3)
(a) Staff report on long-range financial program projections and
status of program implementation
(b) Discussion
(c) Consideration of motion directing staff to implement alternative
supplemental user fee program based on water meter size ·
Consideration of actions relative to Ordinance No. 107, An Ordinance of the
Board of Directors of County Sanitation District No. 1 of Orange County,
California, Amending Ordinance No. 106 Pertaining to Sanitary Sewer Service
Charges: See page "A"
(a) Report of General Counsel re proposed ordinance
(b) Consideration of motion to read Ordinance No. 107, An Ordinance of the
Board of Directors of County Sanitation District No. 1 of Orange
County, California, Amending Ordinance No. 106 Pertaining to Sanitary
Sewer Service Charges, by title only, and waive reading of said entire
ordinance (must be adopted by unanimous vote of Directors present)
(c) Consideration of motion to introduce Ordinance No. 107, An Ordinance
of the Board of Directors of County Sanitation District No. 1 of
Orange County, California, Amending Ordinance No. 106 Pertaining to
Sanitary Sewer Service Charges, and pass to second reading on June 12,
1985 .
(4) Consideration of items relative to sale of excess property located in the
right-of-way over the Santa Ana Trunk Sewer:
(a) Report of General eounsel re proposed sale. See page "B"
(b) Discussion
(c) Consideration of motion approving Agreement re Purchase and Sale of
Real Property with Scenic Tech Center 1984 relative to sale of a
portion of the right-of-way over the Santa Ana Trunk Sewer in the
vicinity of MacArthur Boulevard and Sunflower Avenue in the City of
Costa Mesa
(5) Other business and communications, if any
(6) Consideration of motion to adjourn
-2-
"--1. ORDINANCE NO. 10 7
AN ORDINANCE OF THE BOARD OF DIRECTORS OF
COUNTY SANITATION DISTRICT NO. 1 OF ORANGE
COUNTY, CALIFORNIA, AMENDING ORDINANCE
NO. 106 PERTAINING TO SANITARY SEWER SERVICE
CHARGES
The Board of Directors of County Sanitation District No. 1 of Orange
County, California, does hereby ORDAIN as follows:
Section 1. Table A, as adopted by Section 2 of Ordinance No. 106, is
hereby amended to read as indicated on attached "Table A".
Section 2. This Ordinance shall become effective upon its adoption by a
vote of two-thirds of the Board and its publication, as provided in Section 3.
Section 3. The Secretary shall certify to the adoption of this Ordinance
and shall cause the same to be published in a newspaper of general circulation
of the District as required by law.
PASSED AND ADOPTED by the Board of Directors of County Sanitation District
No. 1 of Orange County, California, at an adjourned regular meeting held this
29th day of May, 1985.
Chairman
ATTEST:
Secretary
II A-1" AGENDA ITEM #3 II A-1"
t~ -. \
TABLE "A"
SINGLE UNIT PARCELS
CONNECTED METER SIZE 1985-86 ANNUAL FEE
5/8" and 3/4" $ 26.40
1" and 1-1/2" 52.50
2" 105.00
3n 210.00
4" 420.00
6" 840.00
II A-2" AGEN~A ITEM #3 "A-2"
~MES G ROURK£
~MOMAS L WOODRUFF'
ALAN R WATTS
KENNARD R SMART . .JR
DANIEL K SPRAOL.IN
L'l'OIA S LEVIN
MARK T WIL.L.MAN
SUZANNE 0 ATKINS
LOIS £ .JEFFREY
THOMAS F'. NIXON
To:
From:
Re:
L.AW OFFICES OF
Rourke & 'fooJruff
A PROF'E:SSIONAL CORPORATION
SUITE 1020
CAL.IF'ORNIA FIRST BANK BUIL.OING
1055 NORTH MAIN STREET
SANTA ANA, CALIFORNIA 92701
TEL.£ PHONE (?14) 835-6212
MEMORANDUM
Board of Directors
County Sanitation District No. 1
General Counsel Date: May 21, 1985
Sale of Excess Property--Santa Ana
Trunk Sewer Right-of-Way
TELECOPIER: 17141 835-7787
CABLE AOORESS RORWOOC
TELEX 80•4294
In 1979, the Board of Directors received a request from a
property owner whose parcel was located adjacent to a narrow
strip of land owned by the District to acquire the District's
surf ace rights in the property in order to allow for full and
easier development. At that time, the District made a study and
determined that the property was excess to its present and future
needs and authorized the sale at a fair market value to the
contiguous property ow·ners.
The historical origin of this property is that it is a
parcel measuring 26 feet i~ width and runs diagonally commencing
at Harbor Boulevard, southwesterly to the Santa Ana River, south
of MacArthur Boulevard, and north of Sunflower. The property is
owned by the District in fee, and was originally acquired by the
City of Santa Ana by grant deed from several different property
owners along the entire length of the line.
The District has previously sold three portions of the line,
wherein the fee was transferred to the adjacent property owner,
and the District received a standard form underground easement in
return. We have recently received a request to purchase another
length of the property measuring 20 feet wide by 731.2·0 lineal
feet in length, for a total of 14,625.6 square feet. It has.
recently been appraised at $9.00 per square foot, and thus the
sale price is $131,625.00. ·
The sale of the property_ will not in any way affect· the
District operations. We will continue to have the.existing sewer
lines remain in the same place, and they will be there pursuant
to a grant of easement for underground sewer line purposes and
with certain limitations on the surface righ~s--namely, that no
"B-1" AGENDA ITEM #4 "B-1"
"B-2"
i.-\
Board of Directors Page 2 May 21, 1985
buildings or other structures be placed on top of the District
line. The sale of the fee, however, will allow the Developer to
satisfy other land use requirements.
It is recommended that the Board approve the sale at the
appraised fair market value price.
TLW :pj (24)
cc: Mr. J.W. Sylvester
Mr. G. Streed
Mr~ .T. Dawes
Miss R. Brown
Thomas L. Woodruff
General Counsel
AGENDA ITEM #4 ''B-2''
-..
FRIEDEM.A.NN, KETO & FINGAL
A PBOPZSSION..U. COBPOBA7'ION
F •. X. P'IUBDEKANN
LABlU J. KETO
ATTORNEYS AT LAW TELEPHONES l7141 999-eeae
17141 83&·3401
'-i/STEPBEN L. JPINGAL
THOMAS W. STIPE
MICHAEL L. VOLLMER
JOHN D. MACXLIN
1800 BAN1t OP AMEHICA TOWBH
ONE CITY BO'tJ'LEVABD WEST
ORANGE, CALD'OBNIA 92888
TELEX F X F COHP. 681 433
"B-3"
May 22, 1985
Thomas L. Woodruff, Esq.
RODRKE & WOODRUFF
California First Bank Building
Suite 1020
1055 North Main Street
Santa Ana, California 92701
Re: Scenic Tech/Orange County Sanitation District
No. 1 Purchase and Sale Agreement
Dear Tom:
The purpose of this letter is to confirm our
client's agreement to purchase from the Orange County
Sanitation District No. l that certain twenty foot strip
in accordance with the terms and conditions set forth in
the drafts of the Purchase Agreement you delivered to our
offices on May 13, 1985. We need to make a minor change
to the Agreement to provide that the Sanitation District
will have the obligation to deliver the strip free and
clear of any encroachment by Ryder Trucks. I understand
that you are in the process of surveying the strip to
determine if in fact there is an encroachment problem.
I will also get together with Mike Anderson to see if we
should purchase the strip between Parcel 13 and Parcel 17
immediately and then acquire the other portion of the
strip when the encroachment problem is resolved.
We are requesting that the Board of Directors of
District No. 1 approve the Agreement, subject to working
out the final mechanical details and the encroachment
problem, if it exists.
If yo~ have any questions,·do not hesitate to
contact me.
Very truly yours,
FRIEDEMANN, KETO & FINGAL
Harri J. Keto
HJK:dll AGENDA ITEM #4
cc: Client
"B-3"
·'
-
II
-MANAGER'S AGENDA REPORT
County Sanitation Districts
of Orange County, California
DISTRICT NO. 1
Post Office Box 8 127
10844 El lis Avenue
Founta in V o l ley, Ca lif., 92708
Te leprcnes:
Area Code 71 4
540-2910
962-24 1 1
MANAGER'S REPORT TO DISTRICT NO. 1 DIRECTORS
MEETING DATE: MAY 29, 1985 -4 :00 P.M.
Item Nos. 2 and 3. Update on long-range financial program and
consideration of i mplementing alternative user fee program.
Last October the Board approved the following fee sched ule to fund the
District's financial needs:
Sing le/Family Multi-Family Commercial Effecti ve
Fee Type Residential Residential Ind /Govmntl Date
One-time Connection $500/Dwe 11 i ng $500/Dwe 11 in g $100/1,000 1/01/85
Fee Unit Unit Square Feet
Annual User Fee $60.00 $36.00 $42 .95/1,000 7/01/85
Square Feet
This long-range financial program was adopted after consider ab le study t o avoid
a then-projected $17 .8 million shortfall in revenues r equired to f inan ce the
Distric t 's operati ng expenses, which are escalating due to rising costs of new
advanced treatment as well as co nstr uctio n of master-planned facilities
improvements.
The one-time connection fee is co ll ecte d for the Distr ict by t he cities
when building permits are issued, and the cities retain 5% for the ir services .
The annual user fee is scheduled to be collected on the property tax bill
commencing with the 1985-86 fiscal year. This is the most cost-effective met hod
and is the sa me one being used by District No. 5 and District No. 6 for
collection of their supplemental user fees.
At the Board's April 24th meeting, staff reported that since the Board
authorized implementation of supplemental user fees commencing in 1985 -86 , they
had been working closely with the County Assessor to develop a data base of al l
customers in District No. 1 and to modify existing computer programs developed
by the Assessor to enable the proposed user fee to be placed on the 1985-86
County of Orange property tax bill. The Assessor's staff ha s been wor king
diligently in support of the District's user fee implemen tation pr ogram,
however, other commitments as well as the Assessor's limited staff resources
have delayed completion of both the programming modi f ications and dev e l opment of
the user data base, specifically due to the large nu mbers of commercial and
-1-
-c
May 29 , 1985
in dustrial facilities that need to be identified in Distr ict No . 1. Due to
these un avoidable delays, it does not appear as if the Assessor will be able to
complete the necessary work to enable implementati on of the sewer service charge
in 19 85-86 util izing the Assessor's da ta base . Staff reported that it had
therefore started to eval ua te an alte rnative method for developing a data base
of user s in District No . 1, and had he ld preliminary discussi ons wi th the City
of Sa nta Ana to determine whether or not the Di stric t could establish a
supplemental user f ee program based upon water meter size dat a available vi a the
city's computer -based utility billing system . This method has been employed
successfully elsewhere by the Districts.
At the Ap ril 24th meeting, the Board directed the staff to proceed with
development of an alternative supplemental user fee program utilizing water
purveyor information as a basis for developing a user f ee and estab l ish i ng a
da ta base for billing the fee s via the Co unty tax roll in fiscal year 1985 -86 .
Staff has acquired and performed a series of ana lyses of water meter and
service address data from the City of Santa Ana to determine the feasibility of
this alternative . Based upon the res ults of t hes e analyses , it appears feasible
to impl ement the proposed alte rn ative progra m in fiscal year 1985 -86.
Major changes that ha ve occ ur re d since the Directors adopted the District 's
long-range financial plan in October, 1984 that will improve t he District's
short-term financi a l co ndi t i on include:
-delays in co nstr uctio n of major capital impr ovements at the Joint
Works treatment faci li ties pending t he Joint Boards decis io n to
form proposed District No . 14 to provide sewer service to the
Irv ine Ranch Water Dis tri c t serv i ce area
-the potential financial benefit to District No . 1 as a result of
allocation of fu nds to the District f rom IRWD's purchase of
capacity in the Joint Works facilities re la tive to forma tion of
proposed District No. 14 .
The enclosed, upda te d set of five -year financial pro j ect i ons out line s t he
District's anticipated financial s tatus at the end of fiscal year 1984-85, as
we l l as i n future yea r s through 1988-89. Both projections assume the
implementatio n of a change to a 100 % f l ow -based method of allocating own ers hip
of equity in the Joint Treatment Works (vs. the existing weighted average of
as sessed valuation and fl ow) as the Boa rds ha ve dec l ared their in tent t o do i n
connection wi t h the formation of District No . 14 .
Th e District is not expected to have a cash shor tfall in 1985-86 if a use r
fee program i s not implemented. However, the District would have to dip fur ther
into nee de d capital re serves to fund operating costs and wou ld still have an
anticipated 5-year cash shortfall of $16.5 mill ion.
-2-
May 29, 1985
Both projections reflect a need for supplemental user f ees i n 19 85-86
sufficient to maintain the solvency of the District's operating fu nd an d pro v i de
for carry-over for the following year's dry period fund i ng re qu ireme nts. St af f
is therefore recommending that the Board consider adopting t he alternati ve user
fee program based on utilizing the water meter size data base and implement the
following fee schedule to be effective with the 1985 -86 fiscal year:
Water Meter Size
5/8 11 + 3/4 11
111 + 1 1/2 11
2"
311
411
6"
Proposed Fee
$ 26.40
52.50
105. 00
210.00
420 .00
840.00
These proposed user fee levels will require increases in the f o llowing years to
maintain a stable financial position in the operating fund. The amoun t would
have to be determined each year based on an updated financial analysis.
In order to implement the alternative program it is necessary t o amend t he
District's previously adopted user fee ordinance to reflect the alternative (and
reduced) fee schedule. Ordinance No. 107 amends the existing user fee schedule
adopted by the Board on October 4, 1984. The proposed action is to app r ove the
first reading of the ordinance at this meeting, and pass the amended ordinance
to its second reading and final adoption at the June 12, 1985 Board mee t ing.
In addition, the Board will have to notify all of the property ow ners in
the District of its intent to collect the use fee on the property tax bill
beginning in 1985-86 . This is a requirement of California Heal t h and Safety
Code Section 5473.1 . Staff is presently developing a notice announcing the
hearing and explaining the proposed alternative program, and will issue the
notice to all the property owners and publish it in a local newspaper in
late June. We have tentatively scheduled the hearing for Thursday, July 18th at
the Santa Ana City Hall.
The staff and the District's EDP consultant are presently edi t ing and
updating the District No. 1 user data base, which contains approximately 36,000
parcels, to enable us to generate mailing labels to notify the property owners
of the public hearing.
-3-
May 29, 1985
Staff will review the proposed alternative user fee program and t he ca sh
flow projections in greater detail with the Board at t he meeting.
Item No. 4: Consideration of sale of excess prope r ty locate d in t he
right-of-way over the Santa Ana Trun k Sewer.
-.r ,
Enclosed with the agenda is a separate report fro m the General Coun se l
recommending sale of excess property in the District's Santa Ana Trun k Sewe r i n
the vicinity of McArthur Boulevard westerly of Harbor.
-4-
Meter
Size
5/811 + 3/4"
1 11 + 1 1/2 11
2"
3"
411
6"
DISTRICT NO. 1
ESTIMATED 1985-86 SUP PLEMENTAL USER FEE REVENUES
BASED UPON WATER METER SIZE
Estimated Proposed
I
5/29/85
Estimated
Number of Meters Rate Revenue Raised
26 ,820 $ 26.40 $ 708,000
3 ,980 52 .50 209,000
900 105. 00 94,500
185 210.00 38,900
95 420 .00 39 ,900
20 840 .00 16,800
Estimated 1985-86 User Fee Revenues $12107,100
MEETING DATE __ M_a_.y_2_9...;.,_1_9_8_S __ TIME 4:00 p.m. DISTRICTS __ l ________ _
DISTRICT 1 JOINT BOARDS
(CRANK),,,,,,,,HANSON,,,,,,~
(SALTARELLJ),t,HOESTEREY,,.~::::::::::
(LUXEMBOURGERJ,GRISET,,,,,,~
(WI EDER>. I I I I I .STANTON. I I I·~==
DISTRICT 2
(NORBY),,,,,,,,CATLJN,,,,,, ____ -~
(ZIEGLERJ,,,,,,BUCK,,,,,,,,
(NELSON) ••••• ,.cooPER •••••• ------
(LUXEMBOURGERJ,GRISET •••••• --
( s I LZEl,J I I' I' I I KAWANAMI I' I.--
(WEDEL) •••••••• MAHONEY ••••• --
(SCOTT)t••••• ,,NEAL,,,,,,,,--
( CUL VER) It I • I I • PERRY I I •• I •• --
(OVERHOLT J ••••• ROTH •••••••• --
(BEYER)t••••• ,,SMITH,, ••••• --
(WIEDERJ,, ,,, ,,STANTON, •••• --
(BEVERAGE).. I •• WISNER. I I I I·==
DISTRICT 3
(OVERHOLT),,,,,ROTH •• ,,,,,,
(COOPER)' ' • I I • I NELSON I I I • ' .--
(THOMAS>. I I I I •• BAILEY •••••• --
(RISNER) ••••••• BROWNELL •••• --
{NORBY) •• I II I •• CATLIN •• I II.--
(PERRY>. t. 11 I I .CULVER. I 11 I·==
(JARRELLJ,, •• ,.GRIFFIN ••• ,.
(LUXEMBOURGERJ,GRISET, ••••• --
(WEDEL),,,,,,, ,MAHONEY,,, •• --
(SCOTT) •• •t•• I ,NEAL. I I I I ••• --
(FJNLAYSONJ •••• OLSON ••••••• --
(KANEL)t••••• .,PARTIN •••••• --
(SEIDELJ,,, •••.POLIS ,,,,,,--
(SJRIANJ),,,,, ,SAPIEN ••••• ,--
(WIEDER),t•••••STANTON,,, •• --
(SELVAGGI} •••• ,SYLVIA. I. I.·==
DISTRICT 5
Ccox) •••••••••• HART ••••••••
<cox) •••••••••• MAURER •••••• --
{WI EDER),, ,,,,,STANTON ••••• ==:
DISTRICT 6
(GALLACHER),, •• WAHNER ••••••
Ccox>.. t ••••••• PLUMMER ••••• --
Cw1EDERJ ••••••• sTANTON ••••• ==:
DISTRICT 7
(BEYER)t•••••••SMITH,,,,,,, _____ _
(MJLLERJ •• I .... SILLS •• I I···--
(SALTARELLI) ••• EDGAR ••••••• __
(LUXEMBOURGER),GRISET,,,,,, __
Ccox> •••••••••• MAURER •••••• __
(WIEDER),,•••• ,STANTON ••••• __
(GREEN) ••• ,,,,,WAHNER.,,,,, __
DISTRICT 11
(MANDICL I. I I I I BAILEY. I. I'·--(WIEDER).,,, ,,,STANTON •• , •• __
(FJNLEY) ••••••• THOMAS ••••• , __
DISTRICT 13
(BEYER) {I I I I' I .SMITH. I I. I I·--
(NELSONJ ••• , •• ,COOPER •••••• __
(WISNER)' I I I I I I BEVERAGE I I'·--
(OVERHOLT). I •• I ROTH •• I ••• I ·--
( W J ED~R), I I. I I .STANTON, I I.·--
5/29/85
(THOMAS/MANDJC),,BAILEY,,,,,,
(WISNER). I I I I I I I .BEVERAGE.''·== (RJSNER),,,,,,,,,BROWNELL,,,,
(ZIEGLER),,,,,,,,BUCK,,,,,,,,--
(NORBY)t•••••••••CATLJN,,,,,,==: (NELSONJ,,,,,,,,,COOPER,,;,,,
(PERRY),,,,t••••1CULYER,,,,,,==
(SAL TAREl,..LI J. I I I I EDGAR I ' I I I I I
(JARRELL>. I. It I I .GRIFFIN. I' I·==
(LUXEMBOURGERJ,,,GRISET,,,,,,
(CRANK),,,,,,,,,,HANSON,,,,,,--
(COX) I I I. I'. I I I I' HART I I I I I I'.--
(SALTARELLI)'' ••• HOESTEREY I I.--
(SJ LZEL LI. I. I' I .KAWANAMI'' '.--
(WEDELL'''' I.'' .MAHONEY.' I I.--(cox). t, •••• ,.,, .MAURER.,,,,.--
CscoTT J,,,,,,,,,, NEAL •••••••• --
(COOPER),,,,, ,,,,NELSON,,,,,,--
(FINLAYSON), I I I' ,OLSON.'. 111 .--
(KANEL)t· • • • • • • • ·PARTJN •••••• --(CULYERJ,,,,,,,,,PERRY ••••••• --
(cox).. t• •• •• , ••• PLUMMER ••••• :=
(SE I DEL J' t I I I I ' I • POL Is. I I I I I I
(OVERHOLT) I •• I I' .ROTH.' I I •• '.--
(SJRIANJ) I'' I I I I ,SAPIEN •• I' •• --
(MILLER). 11 I I'. I .SILLS •• I. 11 .--
(BEYER) 11I11 I I I I .SMITH. I I I 11 .--
(WI EDER). I I I I. I I I STANTON I. I I.--
(SELVAGGI) I I I I I I ,SYLVIA.' I I I.--
(FINLEY). I.' I' I I. THOMAS.'' I I.--
(GREEN/GALLACHER)WAHNER111111--
(BEVERAGE). ••• 11 .WISNER •• 111 ·==
STAFF:
OTHERS:
SYLVESTER,,, .........-
CLARKE,,,,,,--
DAWES •• I I • I I
ANDERSON' I I •
BUTLER •••••• ~
BROWN ••••• ,.~
BAKER I I •• I' I
KYLE ........
YOUNG I I I • I I I
VON LANGEN
WINSOR ••••• ~--
STREED,,,,,.~
CLAWSON,,,,,~
WOODRUFF,,,.~
ATKINS •• , •••
HOHENER. I I. I
HOWARD ••••••
HUNT I I I I I I. I
KEITH ...... I
KNOPF.,, •• ,.=:::
LE BLANC,,,, __
LINDSTROM I I I
LYNCH, •••••• ===:
MARTINSON •••
PEARCE ••••••
COUNTY SANITATION DISTRICT NO. 1
OF ORANGE COUNTY, CALIFORNIA
MINUTES OF ADJOURNED REGULAR MEETING
May 29, 1985 -4:00 P.M.
10844 Ellis Avenue
Fountain Valley, Ca~ifor~~a
..
Pursuant to the adjournment of the regular meeting of May 8, 1985, 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. The roll was called and the
Secretary reported a quorum present.
DIRECTORS PRESENT:
DIRECTORS ABSENT:
STAFF MEMBERS PRESENT:
OTHERS:
Robert Hanson, Dan Griset, Ronald B.
Hoesterey, Roger Stanton
None
J. Wayne Sylvester, General Manager, Rita
Brown, Secretary, William H. Butler, Gary
Streed, Corinne Clawson
Thomas L. Woodruff, General Counsel, Don R.
Griff in
* * * * * * * * * * * * *
Directing staff to implement an
alternative supplemental user fee
program based on water meter size
The General Manager reported that in
October 1984 the Board adopted the
District's long-range financial plan.
This program included the following fee
schedule to fund the District's financial needs:
Single-Family Multi-Family Commercial 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 User Fee . $60. 00 $36.00 $42.95/1,000 7/01/85
Square Feet
This long-range financial program was adopted after considerable study to
avoid a then-projected $17.8 million shortfall in revenues required to
finance. the District's operating expenses, which are escalating due to
rising costs of new advanced treatment required by federal and state
regulatory agencies as well as construction of master-planned facilities
improvements.
Mr. Sylvester also indicated that since the Board authorized implementation
of supplemental user fees commencing in 1985-86, the staff had been working
closely with the County Assessor to develop a data base of all customers in
-1-
5/29/85
District No. 1 and to modify existing computer programs developed by the
Assessor to enable the proposed user fee to be placed on the 1985-86 County
of Orange property tax bill. The Assessor's staff has been working
diligently in support of the District's user fee implementation progEam,
however, other statutory commitments, as well as the Assessor's limited
staff resources, have delayed completion o.f both the programming., ..
i;nodif ications and development of the user· data base, si?ecifically due to the
large numbers of commercial and industrial facilities that need to be
identified in District No. 1, and it does not appear as if the Assessor will
be able to complete the necessary work to enable implementation of the sewer
service charge in 1985-86 utilizing the Assessor's base.
The General Manager also noted that several major things have occurred that
will improve the District's short-term financial condition:
-delays in construction of major capital improvements at the Joint Works
treatment facilities pending the Joint Boards decision to form proposed
District No. 14 to provide sewer service to the Irvine Ranch Water
District (IRWD) service area
-the potential financial benefit to District No. 1 as a result of allocation of
funds to the District from IRWD's purchase of capacity in the Joint Works
facilities relative to formation of proposed District No. 14.
He pointed out, however, that long-term fiscal requirements would be
increased because of the Joint Boards decision to shift calculation of each
District's percentage of equity in the Joint works from a three-year
weighted average of assessed valuation and flow to a 100% flow-based equity
ownership approach which will incr-ease District No. l's share of needed
treatment plant improvements based on the District's actual use of the joint
treatment and disposal facilities.
Due to these unavoidable delays, and in accordance with the Board's
direction at the April 24th meeting, the staff proceeded to develop an
alternative supplemental user fee program util1zing water purveyor
information as a basis for developing an equitable user fee and establishing a
data base for billing the fees via the County tax roll beginning in fiscal year
1985-86. This ~ethod has been employed successfully elsewhere by the Districts.
The General Manager reported that staff had performed a series of
preliminary analyses of water meter and service address data from the City
of Santa Ana to determine the feasibility of this alternative. Based upon
the results of this work, it appears feasible to implement the proposed
alternative program in fiscal year 1985-86.
The Director of Finance then presented various cash flow projections
outlining the impact of the major changes that have occurred since the.Board
adopte~ the financial program and presented revenue projections of the
alternative implementation plans to the Directors. It was pointed out that
the District is not expected to have a cash short fall in 1985-86 if a user
fee program is not implemented. However, the District would have to deplete
needed capital reserves to unacceptable levels to fund operating costs and would
still have an anticipated five-year cash short fall of $16.5 million.
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The projections reflect a need for supplemental user fees in 1985-86
sufficient to maintain the solvency of the District's operating fund and
provide for carry-over for the following year's dry period funding
requirements. Staff, therefore, recommended that the Board consider
adopting the alternative user fee program based on utilizing the water meter
size data base and impleme~1; .. ~h~ .f.o+.l~i~g ,fe~ .. _~chedule t:~ ~ ~efective. w:ith the 1985-86 fiscal year: ·: · ·' ' · · ·· .· .. · '. ··:·:"·,;; ... =-·-:;·.-·:'-~'.:: "~; .. :~. : ........... · :>;~ ..... : ... : : · · ·
water Meter Size
5/8" + 3/4"
l" + 1 1/2"
2"
3"
4"
6"
Proposed Fee
. $:26.40
52.50
105.00
210.00
420.00
840.00
The user fees proposed for 1985-86 would most likely require increases in
the following years to maintain a stable financial position in the operating
fund, however, that would be determined each year based on an updated
financial analysis.
The Directors entered into a lengthy discussion regarding the requirements to
implement an alternative supplemental user fee to maintain the District's
financial integrity to put it on a fiscally-sound basis over the long term.
It was then moved, seconded and duly carried:
That staff be, and is hereby, directed to proceed with implementation of the
alternative supplemental user fee program based on water meter size.
Introduction and First Reading Moved, seconded and unanimously carried:
of Proposed Ordinance No. 107
That Ordinance No. 107, An Ordinance of
the BOard of Directors of :co\Jnty· Sanitation D'ist:dct No. 1. of· Orange C.ourtty,;
California, Amending Ordinance No. 106 Pertaining to Sanitary Sewer Servi~e
. Charges, be read by title only, and1
FURTHER loDVED: That reading of said ordinance in its entirety, be, and is hereby,
waived.
Following the reading of Ordinance No. 107 by title only, it was then moved,
seconded and duly. carried:
That Ordinance No. 107, An Ordinance of the Board of Directors of County
Sanitation District No. 1 of Orange County, California, Amending Ordinance No. 106
Pertaining to Sanitary Sewer Service Charges, be introduced and passed to the
second ~eading on June 12, 1985, at 7:30 p.m. at the District's administrative
offices.
Approving Agreement re Purchase and The Gener.al Counsel reported that over
sale of Real Property with Scenic the past several years the District
Tech Center 1984 has sold several increments of surplus
right-of-way over the Santa Ana Trunk
~ Sewer in the vicinity between MacArthur Boulevard and Sunflower Avenue, from
Harbor Boulevard to the Santa Ana River. The District has received a
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5/29/85
request from a property owner adjacent to the District's strip to acquire a
parcel of approximately 14,626 square feet at a price of $131,625.00. The
sale of the property·will not affect the District's operations and the
District will receive .a grant of easement for the underground sewer with.
surface rights restrictions on the new owner. In accordance with the recent
appra.isal of the proper.ty.,. the ~eneraJ:. C~un~el reco~el)d.~~ ~c~eptance of the ~-offer of scenic :Tech '<~en·ter .. l.984·~"": ... ·· .. .:·.,:~ :"-·'·._:~·· ·. h • • ... • •• • • : = • . ··· : · ... · . · ....... -
It was then moved, seconded and duly carried:
To receive and file the General Counsel's memo dated May 21, 1985 re
Agreement for Purchase and Sale of Real Property with Scenic Tech Center
19847 and,
FURTHER MOVED: That the Agreement re Purchase and Sale of Real Property
with Scenic Tech Center 1984, relative to the sale of a 14,626 square foot
portion of the right-of-way over the Santa Ana Trunk Sewer in the vicinity
of MacArthur Boulevard and Sunflower Avenue in the City of Costa Mesa for the
amount of $131,625.00, be, and is hereby, approved.
Adjournment Moved, seconded and duly carried:
That this meeting of the Board of Directors of County Sanitation District No. 1 be
adjourned. The Chairman then declared the meeting so adjourned at 5:00 P.M.,
May 29, 1985.
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