HomeMy WebLinkAbout1985-10-30 COUNTY SANITATION DISTRICTS
OF ORANGE COUNTY, CALIFORNIA
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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.
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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
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—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-