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HomeMy WebLinkAbout1986-05-21 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA 8 P.O.BOX 8127.FOUNTAIN VALLEY,CALIFORNIA 9272M127 10844 ELLIS.FOUNTAIN VALLEY.CALIFORNIA 92708-7010 (714)962-2411 May 16, 1986 NOTICE OF ADJOURNED REGULAR MEETING DISTRICT NO. 6 WEDNESDAY, MAY 21, 1986 - 4: 30 P.M. Costa Mesa City Hall First Floor Conference Room 77 Fair Drive Costa Mesa, California Pursuant to adjournment of the regular meeting of May 14, 1986 , the Board of Directors of County Sanitation District No. 6 will meet in an adjourned regular meeting at the above hour and date to consider revisions to their long-range financial program. Secretary BOARDS OF DIRECTORS County Sanitation Districts Pmt Offlca Box 9127 ` of Orange County, California 10844 Ellis Avenue Fountain Valley, Calif., 92708 Telaphmas: Am Cade 714 D►srRicr No. 6 9540-2910 62-24111 AGENDA ADJOURNED REGULAR MEETING WEDNESDAY, MAY 21, 1986 - 4 : 30 P .M. Costa Mesa City Hall First Floor Conference Room 77 Fair Drive Costa Mesa, California 92626 (1) Roll call (2) Consideration of items re long-range financial program: (a) Staff report on long-range financial projections and status of program implementation. (b) Discussion (3) Consideration of action on items relative to proposed Ordinance No. 608, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 606 Pertaining to Sewer Connection Charges. See page "A" (a) Report of General Counsel re proposed ordinance. (b) Consideration of motion to read Ordinance No. 608, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 606 Pertaining to Sewer Connection 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. 608, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 606 Pertaining to Sewer Connection Charges, and pass to second reading on June 11, 1986. ( 4) Consideration of action on items relative to proposed Ordinance No. 609 , An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, ...i California, Amending Ordinance No. 607 Pertaining to Sanitary Sewer Service Charges. See page "B" (a) Report of General Counsel re proposed ordinance. (b) Consideration of motion to read Ordinance No. 609, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 607 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. 609, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 607 Pertaining to Sanitary Sewer Service Charges, and pass to second reading on June 11, 1986 . (5) Other business and communications, if any (6) Consideration of motion to adjourn �.s v IIMANAGER'S AGENDA REPORT Post 4 Ell Box 8127 County SeniGtion Diatricb 10844 Ellis Avenue of Orange County, California Fountain Valley, Calif., 92708 TelepFmev Arta Code 714 -� DISTRICT NO. 96224181 MANAGER'S REPORT TO DISTRICT NO. 6 DIRECTORS MEETING DATE: MAY 21, 1986 Update on long-range financial program and consideration of amendments to existing sewer connection charges and sanitary sewer service charges. BACKGROUND In 1983 the Board approved the following fee schedule to help fund the Districts' financial needs: Single-Family Multi-Family Commercial/Ind/ Effective Fee Type Residential Residential Governmental/Other Date One-time Connection $500 $500 $100 per 1,000 sq. April 8, 1983 Fee ft. of building Annual User Fee $26.40 per $15.85 per $18.90 per 1,000 July 9, 1983 dwelling unit dwelling unit sq. ft. of building This long-range financial program of connection fees to finance facilities expansion and supplemental user fees to make up the shortfall of ad valorem tax revenues was established to provide the additional financing required for both operations and major rehabilitation. During the public workshops and hearing held in 1983 to present the District's 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 (1984) 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. In addition, there was a major assessed valuation increase by the County on certain properties that resulted in windfall property tax revenues in 1984-85. This, combined with the positive impact of the formation of District 14 on District 6's long-range financial position, has allowed the Board to postpone any supplemental user fee and/or connection fee increases until now. However, recent changes in use restrictions and the taxable status of those same properties have resulted in property assessment exemptions by the County that have Page Two May 21, 1986 dropped the annual tax revenue to pre-1984-85 levels and will now require an increase i the existing fee structure to maintain the financial integrity of the District's capita, . and operating funds over the next five years. IMPACT OF RECENT ASSESSED VALUE CHANGES Staff contacts with both the County Assessor and Auditor-Controller's offices during the past month indicate that the District can expect to receive approximately $560,000 less in ad valorem tax revenues in 1986-87 and subsequent years than originally anticipated before the change in use restrictions and tax status of the properties. This loss of tax revenue from these properties is estimated to total in excess of $3.5 million, including loss of interest earnings, over the next five years. Formation of District 14, including the sale of treatment plant equity by District 6 to District 14 and the Districts-wide change to flow-based equity in the treatment works, will result in $2.2 million in additional capital revenues for District 6 in 1985-86 and 1986-87. This additional revenue does not offset the lost ad valorem revenues, however, and it appears necessary to consider increases in both connection fees and supplemental user fees in 1986-87 and in future years to meet the long-range operating and capital financing needs of the District. CONNECTION FEES Staff is recommending that the Hoard consider raising the District's one-time connection fees as presented in the following table: Single/Multi-Family Commercial/Industrial Dwelling Units Governmental/Other Existing Fee $500 per dwelling $100 per 1,000 sq. ft. of building Recommended Fee $1,000 per dwelling $200 per 1,000 sq. ft. unit of building The proposed increase will generate an additional $1.7 million, including fees and interest income. These funds will be used to help finance the construction projects identified on the enclosed Schedule of District Collection System Projects (Schedule A) , some of which will be partially financed by Districts 5 and 14. Proposed Ordinance No. 608 includes the recommended fee increases. SUPPLEMENTAL USER FEES Staff is further recommending that the Board consider raising the District's supplemental user fees by 10% in fiscal year 1986-87 as presented in the following table: Single-Family Multi-Family Commercial/Industrial/ Residential Residential Governmental/Other Existing Annual $26.40 per $15.85 per $18.90 User Fee dwelling unit dwelling unit sq. ft, of building Recommended Annual $29.04 per $17.44 per $20.79 per 1,000 User Fee dwelling unit dwelling unit sq, ft. of building Page Three May 21, 1986 If the Board chooses to increase the existing supplemental user fees by 10% per year for the next five years, the additional fees and interest income over the five-year period will total in excess of $2,000,000. The attached Statement of Projected Cash Flow (Schedule B) presents the District's financial position over the next five years including the additional revenues generated by the proposed connection fee and supplemental user fee increases. Staff will review the proposed connection fee and supplemental user fee increases and the cash flow projection in greater detail with the Board at the meeting. scn6DULB n COUNM SANITATION DISTRICT NO. 6 4/1/96 SCIIRDULR OF DISTRICT COLLECTION SYSTBfi PROJECTS projogt Total C.I.P._ 1986-83 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 mein Linked Telemetry I0,000 10,000 local Manbole Rebabilit.tion 15,400 15,000 Coast Trunk purrs Maine: 1. Bitter point Pump Station to Nwport Blvd. (a)• 350,000 250,000 100,000 2. Banta AM River t0 hRky Point (b)• 600,000 100,000 250,000 250,000 Rehabilitate Lido Force Main and PCN Force Mein (LIdO FOtCO Main to Valve -5- (2) (a)• 50,000 50,000 Miscellaneous projects (b) 175,000 25,000 25.000 25,000 25,000 25,000 25,000 25,000 suh-Total ACO Fund 1,200,000 0 350,000 125,000 125,000 275,000 275,000 25,000 25_,000_ Fairvlw/Gialer Trunk (b)•• 1. Gravity Trunk, Pit. No. 1 to Pairv(w Road 1,104,000 29,000 05,000 200,000 BU0,000 2. Palrv(w Road, Baker Street to Wilson Street 2,000,000 2,000,000 Mi..llanecus Project. (b) 175,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Sub-Total FIR Food 3,279,000 29,000 100,000 25,000 225,000 825,000 25,000 25,000 2,025,000 GRAND TOTAL 4,479,000 29,000 450,000 150,000 350,000 1.100,000 :00,000 50,000 2,050,000 ((a N11f Funded 1. RMater-planned facilities presently under construction (bj Partially Funded 2, W.tet-planned facilities presently under design (c Not Funded paid 3. Maser-planned facilities schedul0d for future design/construction Partiall•• partially paid by District 14 V AGENDA ITEM NO. 3 • ORDINANCE No. 608 AN ORDINANCE OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 6 OF ORANGE COUNTY, CALIFORNIA AMENDING ORDINANCE NO. 606 PERTAINING TO SEWER CONNECTION CHARGES The Board of Directors of County Sanitation District No. 6 of Orange County, California, does hereby ORDAIN as follows: Section 1. Section 702 of Ordinance No. 606 is hereby amended to read: 702 DISTRICT 110. 6 CONNECTION CHARGES 1. District Connection Charges No application for a permit for a connection to a District sewerage facility or to any sewerage facility which discharges into a District sewerage facility shall be considered until a District connection charge is paid by the applicant. No connection permit shall be issued unless there is an established use of the property to be served or a valid building permit issued ... which established the use of said property. The following District connection charges are hereby established commencing July 1 , 1986, and shall be paid to the District or to an agency designated by the District: (a) Connection charge for new construction, dwelling buildings: For each new dwelling unit constructed, the connection charge shall be $1000 per dwelling unit. (b) Connection charge for existing dwelling buildings: For the connection of each existing dwelling building, the connection charge shall be $1000 per dwelling unit. (c) Connection charge for new construction and existing structures, other than dwelling buildings: For all other new construction, including, but not limited -1- �.. to, commercial and industrial buildings, hotels and motels and public buildings, the connection charge shall be $200 per 1,000 square feet of floor area contained within such construction, provided that the minimum connection charge for such new construction shall be $1000. (d) Connection charge for replacement buildings: For new construction replacing former buildings, the connection charge shall be calculated on the same basis as provided in paragraphs (a) and (c) above. If such replacement construction is commenced within two years after demolition or destruction of the former building, a credit against such charge shall be allowed and shall be the equivalent connection charge for the building being demolished or destroyed, calculated on the basis of current charges for new construction. In no case shall such credit exceed the connection charges. (a) Connection charges for additions or alterations of existing buildings: In the case of structures where further new construction or alteration is made to increase the occupancy of family dwelling buildings or the area of buildings to be used for other than family dwelling buildings, the connection charge shall be $1000 for each dwelling unit added or created, and, in the case of new construction other than family dwelling buildings, it shall be $200 per 1,000 square feet of additional floor area contained within such new construction shall contain additional plumbing fixture units. Section 2. This Ordinance shall be effective July 1, 1986. -2- Section 3. The Secretary of the Board is directed to certify to the adoption of this Ordinance and cause it to be published in a newspaper of general circulation within the County. PASSED AND ADOPTED BY THE Board of Directors of County Sanitation District No. 6 of Orange County, California, at a regular meeting held Chairman of the Board of Directors, County Sanitation District No. 6 of Orange County, California Secretary, Board of Directors of County Sanitation District No. 6 of Orange County, California -3- �_ AGENDA ITEM NO 4 ORDINANCE NO. 609 AN ORDINANCE OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 6 OF ORANGE COUNTY, CALIFORNIA, AMENDING v ORDINANCE No. 607 PERTAINING TO SANITARY SEWER SERVICE CHARGES The Board of Directors of County Sanitation District No. 6 of Orange County, California, does hereby ORDAIN that Ordinance No. 607 is hereby amended to read as follows: Section 1: Purpose. The purpose of this Ordinance is to establish a system of sanitary sewer service charges required to be paid by property owners for the services and faiclities furnished by the District in connection with its sanitation treatment works and sewage collection system. Revenues derived under the provisions of this Ordinance shall be used for the acquisition, construction, reconstruction, maintenance and operation of the sewage collection facilities and wastewater treatment and disposal facilities of the District, together with costs of administration and provisions for necessary reserves. Section 2: Annual Sanitary Sewer Service Charge. Each parcel of real property located within the District which is improved with structures designed for residential, commercial or industrial use and connected to the District's System, shall pay a sanitary sewer service charge based on the average volume of wastewater discharged by a class of users in the sum or sums as set forth in Table A of this Ordinance. Section 3: Application of Ordinance. The provisions of this Ordinance shall be in addition to Ordinance No. 606 of the District establishing regulations for use of District's sewage facilities, including provisions for payment of charges or fees related thereto. —1— Section 4: Exceptions. The provisions of this Ordinance shall apply to all properties in the District, and no exception shall be provided for properties otherwise deemed exempt by provisions of the State Constitution or statute, such as properties owned by other public agencies or tax exempt organizations, except as expressly provided in Section 5 hereof. Section 5: Exemptions and Appeals. In recognition that certain legal parcels of real property exist within the District which are not connected to the District system and that other properties acquire considerably greater potable water than is ultimately discharged to the District's system, it is the intent of the District that said parcels be exempt totally or in part from the payment of charges as prescribed herein. Any property owner may appeal the assessment of the charges and submit a claim for rebate to the District on the forms prescribed and provided by the District, within one hundred twenty (120) days after the annual property tax bills are mailed by the Orange County Tax Collector. All applications for rebate of an assessment will be determined by the General Manager of the District, or his designee, who may grant a partial or full rebate or adjustment of the charge based on receiving satisfactory proof that an inequity exists between the amount or assessment and the amount of wastewater discharged to the District's systems. Such inequities may include, but are not limited to: (a) the use of the parcel differs from the use indicated by the assessment; (b) no service connection to the District system exists from the parcel assessed; (c) principal water use is agricultural (d) any other use wherein the amount of wastewater discharged to the District's system is significantly lees on a regular basis than the amount that would normally be expected to be discharged by the class of property in question. —2— Section 6: Assessment Based on Fiscal Year. The sanitary sever service charge established by this Ordinance shall remain in effect until such time as the rates adopted by District Ordinance are changed, and there shall be no proration of such charges. Section 7: Method of Collection. Pursuant to the authority granted by California Health and Safety Code Section 5473, all charges established herein shall be collected on the County Tax Roll in the same manner, by the same persons and at the same time as, together with and not separately from, its general taxes. The County Tax Collector is authorized and hereby ordered to make said collections in accordance with the terms and conditions of agreements between the County of Orange and this District. In the event District determines that errors or inequities exist in the amount of charges to be collected by the County Tax Collector, District may submit a bill for any difference directly to the property owner. Said invoiced amount shall be due and payable within thirty (30) days of invoice date. Section 8: Credit for Industrial Permittees. A credit shall be allowed to all discharges permitted pursuant to Article 3 of Ordinance No. 606 for the annual sanitary sever service charge established by this Ordinance in the same manner as credit is allowed for ad valorem taxes pursuant to Sections 302.6, 303.6 and 304.554 of Ordinance No. 606. Section 9: Severability. If any provisions of this Ordinance or the application to any person or circumstance is held invalid by order of court, the remainder of the Ordinance or the application of such provision to other persons or other circumstances shall not be affected. Section 10: Effective Date. This Ordinance shall become effective July 1, 1986. 1 ./ -3- Section 11: The Secretary shall certify to the adoption of this Ordinance and shall cause the same to be published in a newspaper of general circulation in the District as required by law. PASSED AND ADOPTED THIS Chairman of the Board of Directors, County Sanitation District No. 6 of Orange County, California ATTEST: Secretary, Board of Directors of County Sanitation District No. 6 of Orange County, California -4- TABLE A �..i Class of Basis of 1983-84 Minimum Annual User Charge Annual Bate Charge Per Unit Single-Family Charge per -$29.04 $29.04 Dwellings dwelling unit Multi-Family Charge per 17.44 17.44 Dwellings/Mobile dwelling unit Homes Commercial/ Charge per 1,000 20.79 20.79 Industrial/Other square feet of (government building buildings, utilities, non-profit organizations, etc.) Condominiums: Condominiums are considered single-family dwellings. However, in recognition of the limited potential use of small, converted dwelling units, the owner of a single unit may apply for a reduction of the annual rate from $29.04 to $17.44, provided the unit has less than 11 plumbing fixture units (determined as follows) : Fixture Units Assigned by Uniform Building Code Single bath with tub, water 7 Fixture Units closet and wash basin Kitchen with sink and/or 2 Fixture Units dishwasher Laundry facilities 2 Fixture Units 11 Fixture Units Commercial/Industrial: To recognize buildings in this classification where the use of the sewer system may not be directly related to the size of the building such as in a warehousing type of use, any owner of a single building may apply for a reduction of the calculated fee to a minimum annual fee of $17.44, provided said building contains less than 11 plumbing fixture units (as determined above) . Your Local and Regionoe Sewer Systems Are In Fihaencial Jeopardy. We Have To Charge A Sewer Use Fee To Solve the Problem. Here's Why-and How Much. are Sending you this manner r�-- ,.on,rtcnrds chow that / _ __ rYMC10e NIpMppNn nwentwr `/own properly Located in and - --. - aN eoera YesA SANrTAnv DISrmcr Povr�oN wrrNouT use.FEEs served by the Costa Mesa Sanitary ° d TAX REVENUE _CMT MESA servrrA.r Drsrmcr District am/or District 6 of the t'$ N - -� County Sanitation Districts.The �� E «' s Costa Mesa Sanitary District j ` itl'•" e (CMSD)operates and maintains the street sewer system in and around the City of Costa Mesa to which ' bUaTA Yeea your properly is connected.The CMSD system collects your a --- j (el wastewater and delivers u van I their local sewers to the Large " trunk Sewer interceptors own .r / 5 '•0' "`�'•� 'w"`• by Orange County Sanitation Di=- 1 Vict 6IOCSD N0 61.one of Me seven Orange County Samlalion s� Districts which own and operate \ / © f IMPACTOF%10VpsrrloNl3 PPOI MD MWMES,RESERVES, the regional network of large tt / . OWN"WMCT 6 ELexWR S A DEFICIT sewers in metropolitan Orange County. 7i TAX REVENUE DISTRICT 6 OPERATING District 6 transports the wastewater to its '�.,(J ACAPITAL FUNDS treatment facilities where it is treated and u m disposed of in accordance with State and �P'sT"'cr MOs••°'^D•"' °• ^O';^g; ^'LL •^ .. ° Federal requirements tU protect human ---com•Nxr ww.,A health and our environment.Our two Districts are working £•• together to provide you the safest.most cost-effeclive sewer systems possible. � �,,,�°•• g'O ' To ensure that we can safely operate our sewage collection.treatment arc dIs- e e • - •• postal systems,we must properly maintain anted rehabilitate OftSe systems.Sirrce Jurea.1976.the revenues available to CMSD and District 6 have been insufficient 9 ' to meet our escalating operating costs due to inflation,and the higher level o1 ^^ ^^ •••• •• ^^ ^� ,•„^A "•• "-•• treatment required by more stringent Federal regulations. Although our Districts work together to collect,treat arc dispose of sewage the most economical manner,we are separate public eft ilies.with different To increase equity,the fees are based upon volume of wastewater discharged mial requirements due to ow different responsibilities for handling your for residenlial.commercial.arc industrial users of the system.The charges are �yage.We have developed a Sewer use lee structure for our two Districts to help based on the average Usage of a single family resonanm.For commercial and you understand how wer are charging you for this vital public service and how industrial users of the system.the fees will be charged an a square footage much it will cost you.Fortunately.we start with cash reserves.These reserves basis.although all users will pay at least a minimum charge.The fee will be have allowed us to postpone additional use fees until now collected via your property tax statement beginning with the 1993.84 tax bill. Because of current reserves.IN lte in OCSO No.6(Areas A and C on Me Tool The fees presented on The mailing label on the reverse side are based upon the will be S26.40 a year(S720 a month)for single family residences and S15.85 per best data av ridable 10 us at this time.Should you advise os of any changes or it unit per year lot multifamily residences for the 198344 property tax year.:fol The our agencies determine that the land use ur density of development on your month) property is different.we will adjust your charge. The charges 1D the remaining usersavOl W know you may have questions.We'll attempt to answer some of them here. be higher because they discharge greater amounts at wastewater to the system. and.in addition.we've scheduled Public Workshops for May 31.June 2 and 6. The basic fee for CMSD(Areas A and B on the map)will tie S12.95 per year(S7 08 A public hearing is scheduled for June 9 at Costa Mesa City Hall(see reversa).If Par month)for single family residences and S10,45 per unit per year for multi- you have questions,please call(714)540-2910.Extension 5.A full schedule of family residences. fees follows. FEE SCHEDULES CW AI®falWy girt" County lRhm Dlaein b6 Tml Fm WMAWBI laarl A NO cI *a A0*1 Coln of Eau AMIM Lamm Araua1 19L111 alhtlmm Amml MmMnm lxmd In M IA•1•wn Amal UPT N Charge leer MNrie M Z11 ArxroN Aae Cora Per unit Chrye Per unit Areal M Drom m unit Single Family Charge per S12.96 f12.95 SZ8.4a 526<0 54680 53935 539.35 Dwellings dwelling unit Mulli-Family Charge per DwelhniplMobile dwelling unit 1045 1045 158, 1585 28.10 2630 26.30 writes91 arge per Mdmtr,MIO �ppgso Ft 2095. 2095. 18.90 26,40 46M 39.85 47.35 mdustrra/Dmn of buildup 1.Q How do I know what my in will be and when will I pay il? 7 Q Is this money to be used for expanding the system to accommodate A Your annual fees have been printed above your name on the mailing label more growths on the reverse side of this hearing notice.Family dwelling units pay based A No.New sewer lines are funded by substantial connection fees paid by de in the average volume of wastewater for a residential unit.Businesses. velopers Of new construction projects. Jlderstries.govermront agencies and non-profit Dgar azimons pay a charge "agar" eed on the square footage of the floor space they accupy.The fees will 8.Q Can one district borrow from another adlaam district that may be more appear as separate line items on your 1983-84 tax bill. financially stable? 2. What can do if feel my calculated lee is mcorret0 A No.Each of the districts is a separate entity The money belongs to the Q properly owners of that district alone and cannot be lent to other districts. A Complete the attached card and mail it to us.Be sure to include the asses- set eight-digit parcel number which appears in the upper left-hand corner of 9.Q I thought that under Proposition 13 any increase in taxes required your mailing label,Our office will contact you voter approval. 3.Q What if I feel I should be exempt from the charge? A The proposed use fees do not require a vote under Proposition 13.It is a fee. A 11 your property isn't connected to the local sewer system.you are exempt. nor a tax.Water pollution control regulations mandated by The Environmental Simply complete and return the attached card and we II contact you. Protection Agency IEPA)and Slate health laws require us to meet certain pub lie health standards.The fees will provide sufficient funds Io meet these man- 4.Q I live in the City of Newport Beach and pay a change for sewer service on dated requirements.project the health of the public.and keep our waters clean. my wale,bill.Is this a duplicate charge? A No.Your water DII from The City reflects a modest charge for dfe local street 10.Q Are There other ways to collect These fees without pulling them on sewers operated and marinated by the City.The City sewer system cautious our Tax bill? to the District No.6 trunk Sewer system.You will not be Charged a Costa Mesa A The districts could establish separate dnner Telling and collection systems. Sanitary District lee.The District No.6 fee will be used to pay lot the District's but the cost of operating such billing systems would increase the Ions fifteen to trunk sewers and the regional treatment and disposal facilities located in twenty percent lot the average homeowner Fountain Valley and Huntington Beach Thal transport and treat your wastewater 11 Q What will happen rf the Districts don't implement a user fee? 5.Q I already pay a charge to your districts on my lax bill.Why another Charge? A The Districts will have msufhc,mil revenues to maintain the sewer system A The charge you currently pay on your lax Nil is for repayment of bonds and pay the ongoing operating costs to ensure protection of the public health mid many years ago to Pay for construction Of the IMildes you are now and safely. using There is also a charge for trash collection on the brit for Those Properties 12.Q How do I gal more information? In the Costa Mesa Sanitary District.Area A and 8 on the map The new A We II be holding three public workshops to explain the situation in greater charges will pay lot operating.maintaining,and rehabilitating the existing detail to interested members of the public.We are making every effort To sewerage system facilities inform all of the people served by The Costa Mesa Sanitary District and County 6.Q What do you mean by rehabiblMmn? Sanitation District No.6 At each workshop we will have a slide presentation. A Many segments of the Sewer system have been in place for lwedly years or and staff from the two agencies will be present to answer any additional ques- longer,and are subject to corrosion and deterioration as they grow older.We bons you may have The last scheduled meeting is The public hearing on y y mvemenlS to Thu,Slay June 9.1983 at 730 PM in The County Chambers at the Costa Mesa ...n p... q g p DI the s stem ti making nnp .. . can avoid re arm are portions MEETING DATE May 21, 1986 TIME 9:30 p.m.DISTRICTS 6 - Costa Mesa CLty Hall DISTRICT 1 MINT BOARDS (SALTARELLI)...HOESTEREY..._ (MANDICI.........BAILEY...... (CRANK)........HANSOM...... _ (MIRPHY).........BEVERAGE...._ (LUXEMBOURGER).GRISET......� _ _ (ZIEGLER)........BUCK... .. ... _ (WIEDER).......STANTON..... (NORBY)..........CATL:u. . . ... _ (PERRY)..........CULVER...... DISTRICT 2 (SALTARELLI).....EDGAR....... _ (REESE)..........GRIFFIN..... _ (WORST)........CATLIN......_ _ _ (LUXEMBOURGERI...GRISET...... (ZIEGLER)......BUCK........� _ (CRANK)..........HANSON...... (LUXEMSOURGERI.GRISET......_ _ - (COX)............HART........ (SILZEL).......KAKANAMI...._ (SALTARELLI).....HOESTEREY..._ (WEDEL)........MAHONEY....._ _ _ (SILZEL).........RAWANAMI...._ (BEVERAGE).....MURPHY...... _ (SALTARELIi).....KENNEDY..... (SCOTT)........NEAL........ (WEDEL)..........MAHONEY..... (CULVER).......PERRY.......__ _ (Cox)............MAURER...... (OVERHOLT).....ROTH........ (BAKER)..........MILLER...... (BEYER)........SMITH....... _ _ (BEVERAGE).......MURPHY...... (WIEDER).......STANTON..... _ _ (SCOTT)..........NEAL........ (NELSON).......SUTTON...... _ (SUTTON).........NELSON...... (LACAYO).........PARTIN...... DISTRICT 3 (CULVER).........PERRY....... — — — (COX)............PLUMMER..... (LACAYO).......PARTIN...... (NELSON).........POLIS....... (NELSON).......POLIS ...... _ _ (WIEDER).........RILEY....... (NANOIC).......BAILEY...... _ _ (BROWNELL).......RISHER...... (NORBY)........CATLIN...... _ (OVERHOLT).......ROTH........ (PERRY)........CULVER...... '-ACE)...........SAPIEN....... (REESEI........GRIFFIN.... _ ILES)..........SIEFEN...... (LUXEMBOURGER).GRISET..... EYERI..........SMITH....... (WEDEL)........MAHONEY.... IEDER).........STANTON..... (SCOTT)........NEAL....... ELSON).........SUTTON......_ (SUTTON).......NELSON..... a ILLER).........SWAN........ (BROWNELL).....RISHER..... B' s ALVAGGI).......SYLVIA...... _ (OVERHOLT).....ROTH....... -W INLEY).........THOMAS...... (PACE).........SAPIEN..... .S O ALLACHER/GREEN)WAHNER......_ (WILES)........SIEFEN..... (WIEDER) .......STANTON.... (SELVAGGI).....SYLVIA..... _ ' DISTRICT 5 P 4i' �• SYLVESTE.R... CLARKE..... . (Cox)..........HART....... L C a DAWES....... (COX)..........MAURER..... G w y +�{ ANDERSON.... (WIEDER).......STANTON..... ., _ BUTLER...... BROWN....... DISTRICT 6 BAKER....... KYLE........ (GALLACHER)....WANNER...... ✓ CS ES CS VON LANGEN (Cox)..........PLUMIER.....= —W WINSOR...... (WIEDER).......STANTON.....>- = — STREED......7 CLAWSON..... DISTRICT 7 DDTEM....... LINDER...... (SALTARELLI)...EDGAR......._ (BAKER)........MILLER...... (LUXEMBOURGER).GRISET......_ (COX)..........MAURER...... OTHERS: WOODRUFF.... (BEYER)........SMITH....... _ _ ATXIHS......_ (WIEDER).......STANTON....._ _ _ HOMENER....._ (GREEN)........WANNER......_ _ _ HOWARD......_ HUNT........ DISTRICT 11 KEITH....... KNOPF....... (MANDIC).......BAILEY...... _ _ LE BLANC...._ (WIEDER).......STANTON....._ _ _ LINDSTROM..._ (FINLEY).......THOMAS......_ _ _ LYNCH......._ MARTINSON..._ DISTRICT 13 PEARCE...... WASON....... (NELSON).......SUTTON......_ _ _ YOUNG....... (MURPHY).......BEVERAGE...._ (OVERHOLT).....ROTH........_ (BEYER)........SMITH......._ _ — (WIEDER).......STANTON....._ _ — OPt II�� DISTRICT 14 !lntWM) S' o0pn (BAKER)........MILLER......_ (MILLER).......SWAN........_ (SALTARELLI)...KENNEDY....._ (WIEDER).......RILEY......._ (WIEDER).......STANTON..... 05/15/86 COUNTY SANITATION DISTRICT NO. 6 OF ORANGE COUNTY, CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING May 21, 1986 - 4:30 P.M. 77 Fair Drive Costa Mesa, California Pursuant to the adjournment of the regular meeting of May 14, 1986, 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. The Chairman called the meeting to order at 4:30 p.m. In the absence of the Secretary, Rita J. Brown, Chairman Wahner appointed Gary Streed Secretary pro tem. The roll was called and the Secretary pro tem 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, Gary Streed OTHERS PRESENT: Thomas L. Woodruff, General Counsel r � a ,r � awr ,t ,ryes Staff report on long-range The staff reported that in 1983 the financial projections and status of Board approved the following fee program implementation schedule to help fund the Districts' financial needs: Single-Family Multi-Family Commercial/Ind/ Effective Fee Type Residential Residential Governmental/Other Date One-time Connection $500 $500 $100 per 1,000 sq. April 8, 1983 Fee ft. of building Annual User Fee $26.40 per $15.85 per $18.90 per 1,000 July 9, 1983 dwelling unit dwelling unit sq. ft. of building This long-range financial program of connection fees to finance facilities expansion and supplemental user fees to make up the shortfall of ad valorem tax revenues was established to provide the additional financing required for both operations and major facilities rehabilitation work. During the public workshops and hearing held in 1983 to present the District's 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 (1984) of the program to cover rising coats, and then remain at the increased level for several years. \"d _I_ 05/21/86 The District has been able to delay any increase in the supplemental user fee -; since its 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 below previously anticipated levels. In addition, there was a major assessed valuation increase by the County Assessor on�.) certain properties that resulted in substantially increased property tax revenues in 1984-85. This, combined with the positive impact of the formation of District 14 on District 6's long-range financial position, has allowed the Board to postpone any supplemental user fee and/or connection fee increases. However, the staff reviewed long-range financial projections and reported that recent changes in use restrictions and the taxable status of those same properties that were revalued in 1984-85 have resulted in property assessment exemptions by the County that have dropped the annual tax revenue to pre 1984-85 levels and will now require consideration of an increase in the existing fee structure to maintain the financial integrity of the District's capital and operating funds over the next five years. Staff contacts with both the County Assessor and Auditor-Controller's offices during the past month indicate that the District can expect to receive approximately $560,000 less in ad valorem tax revenues in 1986-87 and subsequent years than originally anticipated before the change in use restrictions and tax status of the previously mentioned properties. Formation of District 14, including the sale of treatment plant equity by District 6 to District 14 and the Districts-wide change to flow-based equity in the treatment works, will result in $2.2 million total additional capital revenues for District 6. This additional revenue does not offset the Lost ad valorem revenues, however, and it appears necessary to consider increases in both ` connection fees and supplemental user fees in 1986-87 and in future years to meet �✓ the long-range operating and capital financing needs of the District to pay for higher costs of advanced treatment required by state and federal regulatory agencies. Staff recommended that the Board consider adopting the following one-time connection fee schedule: Single/Multi-Family Commercial/Industrial Dwelling Units Governmental/Other $1,000 per dwelling $200 per 1,000 sq. ft. unit of building Connection fees are charged to new development to finance facilities expansion required to serve such development. Staff further recommended that the Board consider adopting the following user fee schedule: Single-Family Multi-Family Commercial/Industrial/ Residential Residential Governmental/Other $29.04 per $17.44 per $20.79 per 1,000 dwelling unit dwelling unit sq. ft. of building -2- 05/21/86 • User fees supplement the short fall of property tax revenues used to pay for materials, operation costs and rehabilitation work. The Board then entered into a general discussion of the Districts' financial condition and alternatives for funding the Districts' requirements. First reading of proposed It was moved, seconded and unanimously Ordinance No. 608 carried: That Ordinance No. 608, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 606 Pertaining to Sewer Connection Charges, be read by title only; and, FURTHER MOVED: That reading of said entire ordinance be, and is hereby, waived. Following the reading of Ordinance No. 608 by title only, it was then moved, seconded and duly carried: That Ordinance No. 608, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 606 Pertaining to Sewer Connection Charges, be introduced and passed to the second reading on June 11 , 1986 at 7:30 p.m. , at the District's administrative office. First reading of proposed It was moved, seconded and unanimously Ordinance No. 609 carried: That Ordinance No. 609, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance .� No. 607 Pertaining to Sanitary Sewer Service Charges, be read by title only; and, FURTHER MOVED: That reading of said entire ordinance be, and is hereby, waived. Following the reading of Ordinance No. 609 by title only, it was then moved, seconded and duly carried: That Ordinance No. 609, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 607 Pertaining to Sanitary Sewer Service Charges, be introduced and passed to the second reading on June 11, 1986 at 7:30 p.m. , at the District's administrative office. 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 adjourned at 5:00 p.m. , May 21, 1986. S etary o t� Board of Directors Co my Be tation District No. 6 of Orange County, California -3-