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HomeMy WebLinkAbout1985-10-30 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA F 8i I�L16jEy:. P.O.BOX$127, FOUNTAIN VALLEY.CALIFORNIA 9272$-$127 10800 ELLIS. FOUNTAIN VALLEY, CALIFORNIA 02708.7018 (714) 500-2910 (714)962-2411 October 23, 1985 NOTICE OF ADJOURNED REGULAR MEETING DISTRICT NO. 6 WEDNESDAY, OCTOBER 30, 1985 - 7:30 P.M. CITY HALL - FIRST FLOOR CONFERENCE ROOM 77 Fair Drive Costa Mesa, California 92626 Pursuant to adjournment of the regular meeting of October 16, 1985, the Board of Directors of County Sanitation District No. 6 will meet in an adjourned meeting at the above hour and date to review its long-range financial program. 9'C'etary BOARDS OF DIRECTORS County Sanitation Districts post office Box 8127 of Orange County, California 10844 Ellis Avenue Fountain Valley, Calif., 92708 Telephones: Area Cade 714 2241 DISTRICT No. 6 96 11 AGENDA ADJOURNED REGULAR MEETING WEDNESDAY, OCTOBER 30, 1985 - 7:30 P:M. CITY HALL - FIRST FLOOR CONFERENCE ROOM 77 Fair Drive Costa Mesa, California 92626 (1) Roll can (2) Review of long-range financial program projections (3) other business and ccsnmmications, if any (4) Consideration of motion to adjourn MANAGER'S AGENDA REPORT County Sanitation Districts Post Office Box 8I2710844 Ellis Avenue of Orange County, California Fountain Volley, Calif., 92708 Telephwes: A. Code 714 540-2910 DISTRICT NO. fi 96224111 MANAGER'S REPORT TO DISTRICT NO. 6 DIRECTORS MEETING DATE: OCTOBER 30, 1985 - 7:30 P.M. (Costa Mesa City Hall) The purpose of this meeting is to receive a status report from the staff on the District's long-range financial program. BACKGROUND In June of 1983, the Board of Directors of District 6 adopted a long-range financial program that includes supplemental user fees to make up the shortfall of ad valorem tax revenues and provide additional financing required for both operations and major rehabilitation work on the District's collection and transportation system, and connection fees to finance facilities expansion. v Attached is a copy of the Districtts existing supplemental user fee schedule. LONG-RANGE FINANCIAL PROGRAM/USER FEES During the public workshops and public hearing held to present the Districtts proposed user fee program to its constituents, the public was advised that the initial user fee schedule was expected to increase substantially in the second year of the program to cover rising costs, and then remain at the increased level for several years. The District has been able to delay any increase in the supplemental user fee since its inception, however, due to a significant decline in inflation rates, receipt of favorable bids on various District and joint works construction and rehabilitation projects, and delays in various major plant projects, all of which have reduced District expenditures below previously anticipated levels. After Board adoption of the Districtts annual budget this year, the staff received notification from the County Auditor that District 6's tax revenues would be approximately $600,000 less than the $1,449,000 budgeted for fiscal year 1985-86 (refer to Line 2, Schedule A, Statement of Projected Cash Flow, excerpted from the District's 1985-86 budget.) This significant decrease resulted from use restrictions placed on certain properties in the District which caused a major decrease in assessed valuation for certain tax rate areas. Schedule B presents a revised cash flow projection reflecting the impact of this revenue loss in fiscal year 1985-86 and in future years. October 30, 1985 Within the past week, however, the staff has received revised estimates of the District's anticipated ad valorem tax revenues for fiscal year 1985-86 from the County Auditor. These estimates indicate that the District will now receive $1,402,000 in 1985-86 budgeted tax revenues this fiscal year. Schedule C reflects the actual ad valorem tax revenues expected to be received by District 6 this fiscal year. In addition, formation of District No. 14 to serve the Irvine area is scheduled to take place in the next few months, and District 6's $2.215 million share of the revenues from sale of treatment plant capacity to the new District will improve the long-range financial position of District 6. Schedule C also includes the $2.215 million in revenues expected as a result of formation of proposed District 14. Schedule D, Schedule of District Collection System Projects, has also been revised to reflect District 6's decrease in costs for construction of the Fairview/Gisler trunk sewer in 1990-91 and 1991-92 because the cost will now be shared by District No. 14. Staff will review the District's long-range financial program and the enclosed schedules with the Directors in greater detail at the meeting. -2- October 30, 1985 COURTY SANITATION DISTRICT NO. 6 User Fee Schedule Class of Basis of 1983-84 Minimum Annual User Charge Annual Rate Charge Per Unit Single-Family Charge per $26.40 $26.40 Dwellings dwelling unit Multi-Family Charge per 15.85 15.85 Dwellings/Mobile dwelling unit Homes Commercial/ Charge per 1,000 18.90 18.90 Industrial/Other square feet of (government building .� buildings, utilities, non-profit organizations, etc.) p October 30, 1985-:.c 7:30 m. ; �='y M'e ETiNG ./AiE _ P�� _ n 6 D3iR :i 1 _ -�,_�� Costa Mesa City Hall " (CRANK). .... ...HANSON.. . . . . (•-CMAS/MAND:Ci. .3a l'_E". . .. . ._ _ (SALTNRELLI)...HOESTEREY.. .— — (w:Sr:ER).... . . (LUXEMBOURGER).GRISET.... . .— (ZIEGLER)... . .. ..BUCK.. . . . . . . (w:EDE.R).... ...STANTON. . . . . (NORRv). .... . .. ..CAT_IN. . . . . . (NELSON).. .. .. . . COOPER. . . . . . _ D=STRI_T Z (PERRY)... .. .... .CULVEi... . . ._ _ (SALTARELLI).... .EDGAR. . . . . . . _ (NORSY). ... ... .CAT'_IN. . ...._ _ _ (JARRELL).. . .. .. .GRI=F I.N.. . . . (ZIEGLER).. ....BUCK. . . . .... (LUXEMBOURGER)...GRZSET.. . . . . (NELSON)..... ..COOPER. .. ... (CRANK)... .. .. ...HANSON. . . . . . (LUXEMBOURGER).GRISET. ... . . (COX).. ... .. .. ...HART. .. . . . . . (SIL2EL).. .. . ..KAWANAMI.. .._ (SALTARELLI). . .. .MOESTEREY. . ._ ('wEDEL). ..... . .MAHONEEY.. . . . (SILZEL). .. . . . ...KAWAMAMI. . . ._ (SCOTT). .. .. . ..NEAL.... . . . .__ _ _ (WEDEL).... .. . .. .MAHONEY. . . . . (CULVER).... .. .PERRY.. ... . ._ _ _ (COX). ... .... ... .MAURER.. . . . . _ (OVERHOLT).... .ROTH... .. . . . _ _ (BAKEER). ... .. .. . .MIL LE.i. . . .. ._ (BEYER). ..... . .SMITH... . . . ._ __ (SCOTT). . .. .. .. . .NEAL. . . . . . . . _ (IYZEDER).... .. .STANTON. . . . ._ (COOPER)... . . . .. .NELSON. . . . . . (SEVERAGE).. .. .WISNER. . . . .. (r INLAYSON).. .. . .OLSON. .. . . .._ (KANEU. .. . .. ....PARTI . . .. . . DISTRICT 3 (C ER)).... ... . .PERRY.. . . . . . . (COX)OX).. . .. .. . .. . .PLUMMER. . ... (COOPER).......ROTH NELSON .... . ._ _ _ (COOLIES)) .. ... ..POLIS R154ER. . . ..._ (COOPER).... ...NELSON. . . . . . (OVERHOLT).. ... ..ROTH.. . . . ... (THOMAS)...... .BAILEY. . . . . . _ _ (OVERHOLT).. ... ..ROTH.. . .. .. . _ (PERRY).... . ...CUTLER. . . . . . (BEYER)I). .... . ..SMITH. . . ... . _ (PARRY).... .. ..GCULVER RIFFIN . . ..._ _ _ (BEYER)... .... ...SMITH. . . .. . . (OARRELL).... ..GRIFFI N. .. .. (SILVER)) . .. .. ...STANTON VIA. .. . . .... . . (SCOTT).. ......NEAL. . . . . . . . (FIPLEY).. ... . .. . WAHNER.. . . .. (SCOTT)........NESL. . . . ... ._ (BEVERAGE).GREEN)WANNER. .. . . ._ (FINELY SON)....OLSON.... . .._ (9EVERAGE).. . . .. .WI iNER.. . . . ._ (CANE .. ... .PARTI N. .... ._ (COLLIES)INS).. ....POLIS . . . . . . (BROWNELL). ....RI iNER. .. .. . (SIRIANI)..... .SAPIEN. . . . . ._ ('WIEDER). ..... .STANTON. .. . . (SELVAGGI). ... .SYLVIA. . . . . ._ DISTRICT 5 CLARKETER. . .� COARKE. .. . . . (COX). .. . . .....HART. . .. . ..._ _ _ DAWES. . . . . . .� (COX). .. ..... ..MAURER. .. .. . ANDERSON.. . . wIEDER).. .. ...STANTON. . .. ._ 3UT_ER. ... . ._ 3 ROWS. ... . . . DISTRICT 6 BAKER... . . . . KYLE.. . .. . . . (GALLACHER)... .WANNER...... ✓ YOUNG. . .. . . . (COX)... ... . .. .PLUMMER. ... .1 VON LANGEN (WIEDER)..... . .STANTON.... . WINSOR.. .. . . STREED. .. . . . DISTRICT 7 CLAWSON... . . (SALTARELLI). ..EDGAR.. . . . . ._ _ _ (BAKER). . .. .. ..MILLER. . . . .._ OTHERS: WOODRUFF. . . ._ (L'UXEMBOURGER).GRIBET. . . . . ._ _ _ ATKINS. .. . . . (COX).. . ..... ..MAURER. . . . . ._ _ _ HCHENER. .. . . (BEYER). ... .. ..SMITH. . . . . . ._ _ _ HO'WARD.. . . . . (WIEDER).... .. .STANTON. . . .._ _ _ HUNT... .. . . . (GREEN). .. .....WARNER. . . . . ._ _ _ KEITH. . . .. . . KNOPF. . .. . . . DISTRICT 11 LE BLANC.. . ._ LINDSTROM. . . (MAHOIC).. .. .. .BAILEY. . . . . ._ _ _ LYNCH.. . . . . . (WiEDER).. .. ...STANTON. . . . ._ _ _ MARTINSON. . ._ (FINLLY)... . .. .THOMAS. . . . . ._ _ _ PEARCE. . .. . . 1 DISTRICT 13 (NELSON).. .. .. .COOPER. . . . . ._ _ (WISNER).... ...BEVERAGE. . . ._ _ (OVERHOLT).. . . .ROTH.. . . . . .. (BEYER). .......SMITH. . . . . . ._ (WI=DER).......STANTON. . . . ._ 10/16/85 -- CAA Ctrt lVR' e,&(AaL Cog - TNS�IDhr�/rd� -'— ---- �}= `f1�— Y_Yi7o :�_. .�'(,�_ i__+l�. � :•L• Ti,�f:, I<— _h_....�.J),:'���' Dfc _;.:•t A'r��(. :,Jtkli )U64 cjA •^:».� /.J ?��y7C_^ ,L' ,L.)_ ' = r. r, r rv7 ---- - - y ___ '- Y71?_ J!`:: _�:. .«_ �y�c'•-1!! _..-..,SJft..�L. -=�Itrr - �£`' _ ?d�0�.✓f _ let, .'t' +- � i. - Z. ✓/ RAMD_7U RVISCa — ? S MH, =100°0 J-17-6 -. . .._ .... _. ... _. A�c� '�' i/•u. 7J. A►:Yrfr`-� t'�r'/ YJri- iilav'�%Rc tJ � y -6�i�J.�i'S • 1�—J�£rGart� — --- TorHt_ �•Sun ---- — - — '--- 1e�,fgc- --�_Sc�s_ B - ua=^2.=-7°ram- �"✓� �f:s_�.�MH--- -------= /k1a U,RL V;C-y -fir *tPE` 70- i�'sF- ------ �(� •- .Sao/ LV..._t�1��/ �x, :J — N+4� ��"�'./"�'� //M ' /JET _ to (>� fsf_ '_F✓;�a�l��xc f. 7u.3 .. 14 ago- ttg&-Q3 — - - - -. Im�{P--R-f—, lt` :.8, ? i/1s�u st�_ . Wssr' dcu)!ef•-0a QTvt'-rG — QC._". �Fdd V1C f/ �t -r ?✓r Ie l .,,.trr�/. /��!'/�<T•:L� —1�r —EaArtA� I AW*roN " /Y Ar` �;0 76 -- COUNTY SANITATION DISTRICT N0. 6 OF ORANGE COUNTY, CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING October 30, 1985 - 7:30 F.K. Costa Mesa City Hall - Council Conference Room 77 Fair Drive Costa Mesa, California Pursuant to the adjournment of the regular meeting of October 16, 1985, the Board of Directors of County Sanitation District No. 6 of Orange County, California met in an adjourned regular meeting at the above hour and date in the Costa Mesa City Hall Council Conference Room. The Chairman called the meeting to order at 7:30 p.m. and appointed William H. Butler, Director of Finance, as Secretary pro tem in the absence of the Board Secretary. The roll was called and the Secretary pro tea reported a quorum present. DIRECTORS PRESENT: James Wahner, Chairman, Ruthelyn Plummer DIRECTORS ABSENT: Roger Stanton STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager, William H. Butler, Thomas M. Dawes OTHERS PRESENT: Thomas L. Woodruff, General Counsel, Bruce Mattern rr x a fr • w ow :r • x r ,r `..✓ Review of long-range financial The General Manager reported that the program projections and the Master District had adopted a long-range Plant of facilities to serve the financial program in June of 1983 that District includes supplemental user fees to make up the shortfall of ad valorem tax revenues and provide needed additional financing for District operations to cover higher costs of advanced treatment and disposal required by federal and state authorities, and major rehabilitation work on the District's collection and transportation system. The program also includes connection fees to finance facilities expansion. The original plan anticipated that the initial user fee schedule was expected to increase substantially in the second year of the program to cover rising costa, and then remain at that level for several years. However, the District has been able to delay any increase in the supplemental user fees since their inception due to a significant decline in inflation rates, receipt of favorable bids on various District and joint works construction and rehabilitation projects and delays in various major plant projects, all of which have reduced District expenditures well below budgeted levels. At an adjourned meeting of the District on June 25, 1985, the staff advised the Directors that the District's tax base had increased due to increased development resulting from the economic turnaround of the last two years, and recommended that the Board retain the existing fee schedule for the 1985-86 fiscal year. The following schedule presents these current fees for District 6: -I- 10/30/85 County Sanitation District No. 6 User Fee Schedule Class of Basis of 1983-84 Minimum Annual User Charge Annual Rate Charge per Unit Single-Family Charge per $ 26.40 S 26.40 Dwellings dwelling unit Multi-Family Charge per 15.85 15.85 Dwellings/Mobile dwelling unit Homes Commercial/ Charge per 1000 18.90 18.90 Industrial/Other square feet of building After Board adoption of the District's annual budget this year, the staff received notification from the County Auditor that District 6's tax revenues would be significantly less than the $1,449,000 budgeted for fiscal year 1985-86 as a result of use restrictions placed on certain properties in the District which caused a major decrease in assessed valuation for certain tax rate areas. The General manager advised the Directors that the staff had recently received revised estimates of the District's tax revenues for fiscal year 1985-86 from the County Auditor which indicate that the District will receive $1,402,000 in 1985-86 tax revenues but that there would be a significant decrease in 1986-87 due to probable reclassification of certain properties to an exempt status. k4a) Staff reviewed various cash flow projections with the Directors to outline the financial impacts of these developments on the District's long-range financial position. The General Manager noted that formation of District No. 14 to serve the Irvine area is scheduled to take place in the next few months, and District 6's share of the revenues from sale of treatment plant capacity to the new District will improve the long-range capital funding position of District 6. The General Manager then called on the Director of Engineering, who presented a revised schedule of District collection system projects that reflects District 6's decrease in costs for construction of the Fairview/Gisler Trunk Sewer in 1990-91 and 1991-92 because the cost will now be shared with District No. 14. Mr. Sylvester noted that the Board might want to consider increasing the connection fees during next year's budget process to gradually increase the capital funds available to pay for the $4,754,000 in estimated costs for this sewer project in 1990-91 and 1991-92. Adjournment Moved, seconded and duly carried: That this meeting of the Board of Directors of County Sanitation District No. 6 be adjourned. The Chairman then declared the meeting so adjounred at 8:15 p.m., October 30, 1985. Secretary pro tem, Bo6td of Directors County Sanitation District No. 6 of Orange County, California -2-