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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. -2- ,..._ 5/29/85 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 -3- 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. -4-