HomeMy WebLinkAbout1986-06-04 COUNTY SANITATION DISTRICTS
OF ORANGE COUNTY, CALIFORNIA
P.O. BOX 8127, FOUNTAIN VALLEY.CALIFORNIA 9272"127
q 10844 ELLIS.FOUNTAIN VALLEY, CALIFORNIA 92708-7018
(714)962-2411
May 29, 1986
NOTICE OF ADJOURNED REGULAR MEETING
DISTRICT NO. 1
WEDNESDAY, JUNE 4, 1986 - 5:00 P.M.
10844 Ellis Avenue
Fountain Valley, California
There not being a quorum present at the Adjourned Regular Meeting
of County Sanitation District No. 1 at 4:00 p.m. on Wednesday,
.May 28, 1986 , I thereupon adjourned the meeting to the above hour
and date.
secretary
BOARDS OF DIRECTORS
County Sanitation Districts Post Office B. e127
of Orange County, California 10844 Ellis Avenue
Fountain Valley, Calif., 92708
Telephones:
e Mo Cade 714
DISTRICT No. 1 9540-2910
622411
AGENDA
ADJOURNED REGULAR MEETING
WEDNESDAY, JUNE 4, 1986 - 5: 00 P.M.
(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. 108, An Ordinance of the Board of Directors of
County Sanitation District No. 1 of Orange County,
California, Amending Ordinance No. 104 Establishing Sewer
Connection Charges for Use of District Sewerage Facilities,
and Repealing Ordinance No. 105 .
(a) Report of General Counsel re proposed ordinance.
(b) Consideration of motion to read Ordinance No. 108 , An
Ordinance of the Board of Directors of County
Sanitation District No. 1 of Orange County, California,
Amending Ordinance No. 104 Establishing Sewer
Connection Charges for Use of District Sewerage
Facilities, and Repealing Ordinance No. 105, 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. 108 ,
An Ordinance of the Board of Directors of County
Sanitation District No. 1 of Orange County, California,
Amending Ordinance No. 104 Establishing Sewer
Connection Charges for Use of District Sewerage
Facilities, and Repealing Ordinance No. 105, and pass
�; to second reading on June 11, 1986 .
( 4) Consideration. of action on items relative to proposed
Ordinance No. 109 , An Ordinance of the Board of Directors of
County Sanitation District No. 1 of Orange County,
California, Amending Ordinance No, 106 Establishing Sanitary
Sewer Service Charges, and Repealing Ordinance No. 107.
(a) Report of General Counsel re proposed ordinance.
(b) Consideration of motion to read Ordinance No. 109, An
Ordinance of the Board of Directors of County
Sanitation District No. 1 of Orange County, California,
Amending Ordinance No. 106 Establishing Sanitary Sewer
Service Charges, and Repealing Ordinance No. 107, by
title only, and waive reading of entire ordinance (must
be adopted by unanimous vote of Directors present) .
(c) Consideration of motion to introduce Ordinance No. 109 ,
An Ordinance of the Board of Directors of County
Sanitation District No. 1 of Orange County, California,
Amending Ordinance No. 106 Establishing Sanitary Sewer
Service Charges, and Repealing Ordinance No. 107, and
pass to sedond reading on June 11, 1986 .
(5) Other business and communications , if any
( 6) Consideration of motion to adjourn
-2-
MANAGER'S AGENDA REPORT
County Sanitation Districts Vow Office Box em
10844 Ellis Avenue
of Orange County, California Fountain Volley, Calif., 92708
TeIeOFmes:
A. Code 714
540-290
DISTRICT NO. 1 962-24111
MANAGER'S REPORT TO DISTRICT NO. 1 DIRECTORS
MEETING DATE: June 4, 1986
Update on long-range financial program and consideration of amendments to existing sewer
connection charges and sanitary sewer service charges.
BACKGROUND
Last year, the Board authorized implementation of a long-range financial plan and
approved the following fee schedules to fund the District's requirements:
Connection Fees Effective 1/1/85
Single-Family Multi-Family Colmsercial/Ind/
Fee Type Residential Residential Governmental/Other
One-time Connection $500/Dwelling $500/Dwelling $100/1,000 Sq. Ft.
Fee Unit Unit of Building
User Fees Effective 7/1/85
Water Meter Size Annual Fee
5/8e + 3/4e $26.40
1e + lye 52.50
2e 105.00
3e 210.00
4e 420.00
6e 840.00
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 necessary for District operations,
maintenance, rehabilitation and expansion activities. The program was adopted after
considerable study to avoid a projected long-range funding shortfall in revenues required
Page Two
June 4, 1986
to finance the District's operating expenses, which were escalating due to the rising
cost of advanced treatment as well as construction of master-planned treatment facilities
improvements.
STATUS OF DISTRICT'S LONG-RANGE FINANCIAL PROGRAM
Schedule A (attached) provides an overview of the District's financial position for the
next five years based on the existing fee structure. Although the District could
continue to operate through fiscal year 1986-87 and remain in a positive cash position at
the end of the year (refer to line 51, Fund Balance: $4,009,000 in 1986-87) , in the
following year the District will end up in a deficit position by year-end (line 51:
($249,000) in 1987-88) if no increases are made in the current fee structure. At the end
of the five-year period presented on Schedule A, the District would face a deficit of
approximately $18.75 million.
Although the recent formation of new District 14 has resulted in the District receiving
approximately $3,970,000 from the new district's purchase of capacity in the joint
treatment and disposal facilities and reduced District 1's proportionate share of future
capital expansion of the joint facilities, the positive financial impacts of District
14's formation are offset by the Joint Boards' concurrent shift to a 100% flow-based
method of allocating ownership share of joint treatment works which increased District
1's required equity. The reason for this increase is District 1's lower proportionate
tax base which was previously a factor in calculating its joint works equity prior to th
change to a method that uses only flow.
Based on current projections, the District will have to more than double its rate
structure war the next five years to generate additional revenues to ensure its
financial integrity. Adoption of a systematic plan and schedule to do so will provide
for a stabilized long-range financial plan with annual rate increases sufficient to meet
its funding requirements. Immediate implementation of a revised fee structure will
result in smaller annual increases than if the increases are delayed.
Many economic factors could affect the rate structure requirements over the next several
years. However, the staff evaluates the District's financial position each year to
determine the impact of changing conditions and thus, modifications or delays in fee
increases in future years could be accommodated if appropriate. The following
recommendation is presented as a starting point for consideration of fee increases for
1986-87.
CONNECTION FEES
Staff is recommending that the Board 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/Dwelling Unit $100/1,000 Sq. Ft. of
Building
Recommended Fee $1,000/Dwelling Unit $200/1,000 Sq. Ft. of
Building
Page Three
jt 4, 1986
The proposed increase will generate an additional $600,000, 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 B) ,
as well as the District's share of the master-planned expansion of the joint treatment
facilities. Proposed Ordinance No. 108 includes the recommended fee increases.
SUPPLEMENTAL USER FEES
Schedule C presents the District's financial position should the Board adopt the increase
in the connection fee as well as a schedule 20% annual increase in the District's
supplemental user fees. If the Board chooses to increase the supplemental user fees by
20% per year for the next five years, the additional fees and interest income over the
five years will total approximately $3.9 million.
Fee Schedule (20% Annual Increase)
Meter Size 1985-86• 1986-87 1987-88 1988-89 1989-90 1990-91
5/8" s 3/4" 26.40 31.68 36.96 42.24 47.52 52.80
1" 52.50 63.00 73.50 84.00 94.50 105.00
2" 105.00 126.00 147.00 168.00 189.00 210.00
3" 210.00 252.00 294.00 336.00 378.00 420.00
4" 420.00 504.00 588.00 672.00 756.00 840.00
6" 840.00 1,008.00 1,176.00 1,344.00 1,512.00 1,680.00
• Existing Fee Schedule
Annual Supplemental User Fee Revenues
961,000 1,154,000 1,385,000 1,662,000 1,995,000 2,394,000
Staff will review the financial projections and financial plan alternatives with the
Board at the meeting. In the event the Board wishes to initiate an ordinance raising
user fees beginning in fiscal year 1986-87, staff has agendized Ordinance No. 109 (Agenda
Item No. 4) .
Staff will review the proposed connection fee increase and supplemental user fee
alternatives and the accompanying cash flow projections in greater detail with the Board
at the meeting.
additional floor area contained within such new construction,
provided such new construction shall contain additional
plumbing fixture units.
Section 2. This Ordinance shall be effective July 1, 1986.
Section 3. Ordinance No. 105 is hereby repealed on the effective date
hereof, as it is inconsistent with the provisions of this Ordinance.
Section 4. 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. 1 of orange County, California, at a regular meeting held
Chairman of the Board of Directors,
County Sanitation District No. 1
of Orange County, California
ATTEST:
Secretary, Board of Directors of
County Sanitation District No. 1
of orange County, California
-3-
RE: AGENDA ITEM NO. 4
ORDINANCE NO. 109
AN ORDINANCE OF THE BOARD OF DIRECTORS
OF COUNTY SANITATION DISTRICT NO. 1 OF
ORANGE COUNTY, CALIFORNIA, AMENDING
*../ ORDINANCE NO. 106 ESTABLISHING SANITARY
SEWER SERVICE CHARGES, AND REPEALING
ORDINANCE NO. 107
The Board of Directors of County Sanitation District No. 1 of Orange County,
California, does hereby ORDAIN that Ordinance No. 106 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 facilities furnished by the District in connection with its
sanitation treatment corks 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. Cannencing July 1, 1986,
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. 104 and 105, as amended, 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. Except as expressly provided in Section 5 hereof,
the provisions of this Ordinance shall apply to all properties in the District,
and no exception shall be provided for properties otherwise deemed exempt from
payment of taxes or assessments by provisions of the State Constitution or
statute, including properties awned by other public agencies or tax exempt
organizations.
Section 5: Exertions 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 bill is mailed.
All applications for rebate of the annual sewer service charge 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 and the amount of
wastewater discharged to the District's systems. Such inequities may include,
but are not limited to the following instances:
(a) the use of the parcel differs from the use indicated by the charge;
(b) no service connection to the District system exists from the parcel
charged;
(c) the principal water use is agricultural;
(d) any other use wherein the amount of wastewater discharged to the
District's system is significantly less on a regular basis than the
-2-
amount that would normally be expected to be discharged by the class of
property in question.
Section 6: Annual Charge Based of Fiscal Year. The sanitary sewer service
charge established by this Ordinance shall remain in effect until such time as
the rates adopted by the 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. 104 in an amount
equal to the annual sanitary sewer service charge established by Section 2 of
this Ordinance. Said credit shall be made in the same manner as credit is
allowed for ad valorem taxes pursuant to Section 302.6, 303.6 and 304.5(B) (4) of
Ordinance No. 104.
Section 9: Severability. If any provision 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.
-3-
Section 10: Effective Date. This Ordinance shall become effective July 1,
1986.
.� Section 11. Ordinance No. 107 is hereby repealed on the effective date
hereof, as it is inconsistent with the provisions of this Ordinance.
Section 12: 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 by the Board of Directors of County Sanitation District
No. 1 of Orange County, California, at a regular meeting held
Chairmen of the Board of Directors,
County Sanitation District No. 1
of Orange County, California
Secretary, Board of Directors of
County Sanitation District No. 1
of Orange County, California
-4-
TABLE 'A'
SINGLE UNIT PARCELS
CONNECTED METER SIZE 1986-87 ANNUAL FEE
5/8" and 3/4" $
1" and ld"
2"
3"
4"
6"
If a parcel contains more than one water meter, then the
charge applicable to each meter shall be added together and
the sum levied against the parcel.
-5-
MEETING DATE June 4Y 1986 TIME S:OO IJ.RI.DISTRICT$ 1
DISTRICT 1 JOINT BOARDS
(SALTARELLI)...MOESTEREY...t (MANDIC).........BAILEY......
(CRANK)........HANSON...... (MURPHY).........BEVERAGE...._
(LUXEMBOURGER).GRISET...... (ZIEGLER)........BUCK........
(WIEDER).......STANTON..... (NORBY)........:.CATLIN......
_
(PERRY)..........CULVER......
DISTRICT 2 (SALTARELLI)'.....EDGAR.......
�Y (REESE)..........GRIFFIN.....
(NORBY)........CATLIN......_ _ . (LUXEMBOURGER)...GRISET......
(ZIEGLER)......BUCK........� _ � (CRANK)..........HANSON......
(LUXENBOURGER).GRISET......_ - - (COX)............HART........
(SILZEL).......KANANAMI...._ (SALTARELLI).....HOESTEREY..._
(MEDEL)........MAHONEY..... (SILZEL).........KAMANAMI....�
(BEVERAGE).....MURPHY...... _ (SALTAAELLI).....KENNEDY.....
(SCOTT)........HEAL........ _ _ (MEDEL)..........MAHONEY.....
(CULVER).......PERRY....... (COX)............MAURER......�
(OVERHOLT).....ROTH........ _ (BAKER)..........MILLER......
(BEYER)........SMITH....... (BEVERAGE).......MURPHY......
(MIEDER).......STANTON..... _ (SCOTT)..........NEAL........
(NELSON).......SUTTON......� I BUTTON).........NELSON......
(LACAYO).........PARTIN......
DISTRICT 3 (CULVER).........PERRY.......
(COX)............PLUMMER.....
(LACAYO).......PARTIN......- _ - (NELSON).........POLLS.......
(NELSON).......POLIS ......- _ - (MIEDER).........RILEY.......
(MANDIC).......BAILEY...... _ (BROWNELL).......RISHER......
(NORSY)........CATLIN...... _ (OVERHOLT).......ROTH... . ....
(PERRY)........CULVER...... _ _ (PACE)...........SAPIEN......
(REESE)........GRIFFIN..... _ (WILES)..........SIEFEN......
(LUXEMBOURGER).GRISET......� _ (BEYER)..........SMITH.......
(MEDEL)........MAHONEY.....� (WIEDER).........STANTON.....�
(SCOTT)........NEAL........� _ _ (NELSON).........SUTTON......
(SUTTON).......NELSON...... _ _ (MILLER).........SWAN........
(BROWNELL).....RISHER......� _ _ (SELVAGGI).......SYLVIA......
(OVERHOLT).....ROTH........� (FINLEY).........THOMAS......�
(PACE).........SAPIE....... (GALLACHER/GREEN)YANNER......�
(WILES)........S IEFEN......�
(MIEDER).......STAHTON.:...-
(SELVAGGU.....SYLVIA......- _ _ STAFF:
DISTRICT 5 SYLVESTER...✓
CLARKE......
(COX)..........HART........_ _ _ DAWES.......
�V (COX)..........MAURER......_ _ _ ANDERSON...•
(WIEDER).......STANTON....._ - - BUTLER......
BROWN........
DISTRICT 6 BAKER.......
KYLE........
(GALLACHER)....MANNER......_ _ . VON LANGEN
(COX)..........PLUMMER....._ _ _ MI NSOR......_
(VIEDERI.......STANTON....._ _ - STREED......_��
CLAWSON.....
DISTRICT 7 00 TEN.......
LINDER......
(SALTARELLI)...EDGAR......._
(BAKER)........MILLER......
(LUXEMBOURGER).GRISET......_ _ _
(COX)..........WIURER......_ _ OTHERS: WOODRUFF....
(BEYER)........SMITH......._ _ _ ATKINS......�
(MIEDERI.......STANTON....._ _ _ HOMENER.....�
(GREEN)........KANNER......- - _ HOWARD......
HUNT........
DISTRICT 11 KEITH.......
KNOPF.......
_ (MANDIC).......BAILEY...... _ LE BLANC...._
(MIEDER).......STANTON..... LINDSTROM..._
(FINLEY).......THOMAS......� _ LYNCH......._
MARTINSON..._
r DISTRICT 13 PEARCE......
MASON.......
(NELSON).......SUTTON......_ _ _ YOUNG.......
(MURPHY).......BEVERAGE...._
(OVERHOLT).....ROTH........_
(BEYER)........SMITH......._
(WIEDER).......STANTON....._
DISTRICT if
AKER)........MILLER......_
MILLER).......SWAN........_
(SALTARELLI)...KENNEDY....._
(WIEDER).......RILEY......._
(MIEDER).......STANTO......_
05/15/86
COUNTY SANITATION DISTRICT NO. 1
OF ORANGE COUNTY, CALIFORNIA
MINUTES OF ADJOURNED MEETING
June 4, 1986 - 5:00 P.M.
10844 Ellie Avenue
Fountain Valley, California
Pursuant to the adjournment of the adjourned regular meeting of May 28,
1986, the Board of Directors of County Sanitation District No. 1 of Orange
County, California met in an adjourned meeting at the above hour and date in
the District's Administrative Office.
The Chairman called the meeting to order at 5:25 p.m. The roll was called
and the Secretary reported a quorum present.
DIRECTORS PRESENT: Ron Hoesterey, Chairman, Robert
Hanson, Dan Griset
DIRECTORS ABSENT: Roger Stanton
STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager,
Rita J. Brown, Secretary, William H.
Butler, Gary Streed
OTHERS PRESENT: Thomas L. Woodruff, General Counsel
+ • � r t � r. � * w r � t
Staff report on long-range The staff reviewed the long-range
financial projections and statue of financial plan that had been
program implementation implemented iri 1984-85 which included
the following fee schedule to fund
the District's requirements:
Connection Fees Effective 1/01/85
Single-Family Multi-Family Commercial/Ind/
Fee Type Residential Residential Governmental/Other
One-time Connection $500/Dwelling $500/Dwelling $100/1,000 sq.ft.
Fee Unit Unit of building
User Fees Effective 7/01/85
Water Meter Size Annual Fee
5/8" and 3/4" $26.40
1" and 1}" 52.50
2" 105.00
3" 210.00
4" 420.00
�.,/ 6" 840.00
06/04/86
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, maintenance, rehabilitation and major facilities rehabilitation work.
The program was adopted after considerable study to avoid a projected long-range
funding shortfall in revenues required to finance the District's operating
expenses, which were escalating due to the rising cost of advanced treatment as
well as construction of master-planned treatment facilities improvements. At the
time the program was adopted it was understood that rates would have to be
progressively increased to meet the long-term needs.
The staff reviewed the updated projections which still reflect funding shortfalls
based on the current rate structure.
Although the recent formation of new District 14 has resulted in the District
receiving some capital funds for its share of the new District's purchase of
capacity in the joint treatment and disposal facilities and reduced District 1's
proportionate share of future capital expansion of the joint facilities, the
positive financial impacts of District 14's formation are offset by the Joint
Boards' concurrent shift to a 1002 flow-based method of allocating ownership
share of joint treatment works which increased District 1's required equity. The
reason for this increase is District 1's lower proportionate tax base which was
previously a factor in calculating its joint works equity prior to the change to
a method that uses only flow.
Based on current projections, the District will have to increase its rate
structure over the next five years to generate additional revenues to ensure its
financial integrity. Staff pointed out many economic factors could affect the
rate structure requirements over the next several years. However, the staff
evaluates the District's financial position each year to determine the impact of
changing conditions and thus, modifications or delays in fee increases in future
years could be accommodated if appropriate. Following further discussion of the
financing alternatives, it was moved, seconded and duly carried:
That the connection fee schedule be increased as follows:
Single/Multi-Family Commercial/Industrial
Dwelling Unite Governmental/Other
$1,000/Dwelling Unit $200/1,000 Sq. Ft. of
Building
FURTHER MOVED: That the existing user fee schedule be retained in effect for the
next fiscal year.
Staff was directed to evaluate the long-term financial projections again prior to
consideration of the rate structures for 1987-88 and report back to the Board at
that time.
-2-
06/04/86
First reading of proposed It was moved, seconded and unanimously
Ordinance No. 108 carried:
That Ordinance No. 108, An Ordinance of the Board of Directors of County
`/ Sanitation District No. 1 of Orange County, California, Amending Ordinance
No. 104 Establishing Sewer Connection Charges for Use of District Sewerage
Facilities, and Repealing Ordinance No. 105, 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. 108 by title only, it was then moved,
seconded and duly carried:
That Ordinance No. 108, An Ordinance of the Board of Directors of County
Sanitation District No. 1 of Orange County, California, Amending Ordinance
No. 104 Establishing Sever Connection Charges for Use of District Sewerage
Facilities, and Repealing Ordinance No. 105, 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. 1
be adjourned. The Chairman then declared the meeting so adjourned at 5:50 p.m.,
June 4, 1986.
Secretary, Board of Directors
County Sanitation District No. I of
Orange County, California
-3-
�.r
C0UNrY SANI=ON DISTRICT NO. 1
OF aW4GE ODUYN, CALIFORNIA
MINUTES OF THE ADJQIMM REGULAR MEETING
MAY 28, 1986 - 4:00 P.M.
10844 Ellis Avenue
Fountain Valley, California
r r r r r r r r r r r r
Adjournment of meeting This 28th day of May, 1986, at
by Secretary 4:00 p.m., being the time and place
for the Adjourned Regular Meeting
of County Sanitation District No. 1 of Orange County, California, and these
not being a quorum of said Board present, the meeting of District No. 1 was
`.✓ thereupon adjourned by the Secretary to 5:00 p.m., Wednesday, June 4, 1986,
at the Districts' Administrative Office to consider revisions to the
District's long-range financial program.
Secretary of tte Board of Directors
County Sanitation District No. 1
of Orange County, California
COO= SANITATION DISTRICT NO. 1
OF OE=GE 0ORM, CALIFORNIA
MINUTES OF THE AWOMUM RIDaILAR MEEPING
MAY 28, 1986 - 4:00 P.M.
10844 Ellis Avenue
Fountain Valley, California
Adjournment of meeting This 28th day of May, 1986, at
by Secretary 4:00 p.m., being the time and place
for the Adjourned Regular Meeting
of County Sanitation District No. 1 of Orange County, California, and there
`d not being a quorum of said Board present, the meeting of District No. 1 was
thereupon adjourned by the Secretary to 5:00 p.m., Wednesday, June 4, 1986,
at the Districts' Administrative Office to consider revisions to the
District's long-range financial program.
Secretary of ttre Board of Directors
County Sanitation District No. 1
of orange County, California
MEETING DATE May 28, 1986 TIME 4 : 00 Pm DISTRICT; 1
DISTRICT 1 — — ]MINT SHERDS — —
(SALTKRELLI.. ..HOESTEREY... ✓ �'"H'^g (MUNOIC).... .....BAILEY......
(CRENM)........HENSON...... ✓ (MURPHY))........BECK RAGE...._
I^ (WIEDEROURGER..STAiET TON. . ... $ � (NORSY c..... .....BUCK. .. .
m (a'IE DER).......STANTON. ... . (NORBY).... . .....CULIER. .. ...
_
(PERRYILLI).. . ..EDGAR.... .. .
: DI$iRIC7,2 (REESE)...U.....EDGER.... .. .
\� (REESE)... .... ...GR13ET......
_
(HERBY).)......CATLBUCK IN...... (CRANK)..........HANSON......_
(LIEGLER)......BUCV........_ (CRANK)..........HART ON......_
(LUXEMBO URGER).GRISET.. . ..._ (COX)............HART..... .. .
(SILIEU.......MAHONEY..... (SILIEL)........ .KENNEDY!...._
(BEVERAGE).... .MURPHY NEAL...... ..
(SALTER.. .. . .....MENNEEY. ... .
(CULVER)..... ..NEAR...... .._ _ _ (CEDE.. .. .. .... ..MAURER....... ....
(BEYER)........ROTH MIT ..... .. (BEVER)GE ).......MILLER. .....
(WIEDER........SMITH... . ..._ (BEVERAGE).... . ..MURPHY NEAL........
(MESON).......STANTON (SUTTON). ........NEAR........_
(NELSON)).......SU TTON......_ (SUTTON).........NELSON......
(LULVER).........PERT.. ... . ..
DISTRICT 3 (COX)ER).........PERRY
MMER. . ..._ _
(COLS)...........POLLS.... ...
(NELSON).......PERTSN.... .. (NELSON).... .....RILIS... . ..._
(NELSON).......POLLS ... ... (WIEDER).. . ......RISNER... ....
_
(MANDIC).......BAILEY IN......_ (OVERHOLT).......RITH.... ....
(HERBY)........CULVER...... (PACE)...).......ROTH........
(REESE)........GRIFFIN... ..
(PALE)...........SAPIEN....... _
(REESE)... ... ..GRIFFT.... .._ _ _ (WINES)..........SIEFEN
(LUXEMSOURG....GRISET MAHONEY..... (LAYER)..........SMITH.......
(MEDAL)........NEAL.... .. ..
_ _ (NELSON).........STANTON UTTON......
_
(SUTTON).......NELSON.. .. .._ (NELSON).........SUIT ON......_ _
(BROWNE L).....NELSON...... _ _ (HILLER).........SWAN........
(OVERHOLT).....ROTH........_ _ _ (FINLEY).........SYLVIA THOMAS......
(PACE) L T I.....ROTH........_ _ _ (FINLEY). ........THOMES......
_
(PACE).........SAPIEN......
_ _ (GAIIACNER/GREEN)WAHNER......
_
(WILDS)........SIEFENTANTO ....._
(YIEDER).......STAN TON.....
(SAL VEGGI).....SYIVIA.....,_ STAFF:
DISTRICT 5 SYLVESTER..._
CLARKE......
ICOX)..........HART..... ..._ DACES.......
\� (COX)..........MAURER...... _ _ ANDERSON...._
(WIEDER).......STANTON....._ _ _ BUTLER......
BROWN.......
DISTRICT 6 BAKER.......
KYLE........
(GALLACHER)....MAHNER......_ _ _ VON LANGEN
(COX)..........PLUMMER....._ _ _ WINSOR.... ..
(WIEDER).......STANTON....._ _ _ STREED......
CLAWSON.....
DISTRICT 7 OOTEN.......
LINDER......
(SALTARELLI)...EDGAR......._
(BAKER)........MILLER......_
(LUXEMBOURGER).GRISET......_ _ _
(COX)..........MAURER.. ....
OTHERS: YOODRUFF...._
(BEYER)........SMITH... .... ATKINS......
(WIEDER).......STANTON. ...._ _ _ HOHENER.....
(GREEN)........WARNER. ....._ _ _ HOWARD......
HUNT........
DISTRICT 11 KEITH.......
KNOPF.... ...
(MANDIC).......BAILEY......_ _ _ LE BLANC— _
(NIEDER).......STANTON....._ _ _ LINDSTROM..._
(FINLEY).......THOMAS...... LYNCH......._
MARTINSON..._
DISTRICT 13 PEARCE......
MASON.......
(NELSON).......SUTTON......_ _ _ YOUNG.......
(MURPHY).......BEVERAGE... ._
(OVERHOLT).....ROTH........_
(BEYER)........SMITH......._
(MIEDER).......STANTON....._
DISTRICT 16
(BAKER)...:....MILLER..... ._ _ _
(MILLER).......SWAN........_ _ _
(SALTARELLII...KENNEDY... .. _
(WIEDER)..... ..RILEY..... ..
(WIEDER).......STANTON.....
05/15/86
Q6111A.-
COUNTY SANITATION DISTRICTS
� '" OF ORANGE COUNTY, CALIFORNIA
P.O. BOX 8127, FOUNTAIN VALLEY,CALIFORNIA 82728-8127
o9�.a. ,e 10844 ELLIS,FOUNTAIN VALLEY,CALIFORNIA 02708-7018
)714)882-2411
May 21 , 1986
NOTICE OF ADJOURNED REGULAR MEETING
DISTRICT NO. 1
WEDNESDAY, MAY 28, 1986 - 4: 00 P.M.
10844 Ellis Avenue
Fountain Valley, California
Pursuant to adjournment of the regular meeting of May 14, 1986 ,
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 the District' s long-range financial
program.
Secretary
BOARDS OF DIRECTORS
County Sanitation Districts Post Office sox 8127
Of Orange County, California 10844 Ellis Avenue
Fountain Valley, Calif., 92708
Talephe
Area Code 714
DISTRICT No. 1 9540-291 62-2411
AGENDA
ADJOURNED REGULAR MEETING
WEDNESDAY, MAY 28, 1986 — 4: 00 P.M.
(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. 108, An Ordinance of the Board of Directors of
County Sanitation District No. 1 of Orange County,
California, Amending Ordinance No. 104 Establishing Sewer
Connection Charges for Use of District Sewerage Facilities,
and Repealing Ordinance No. 105 .
(a) Report of General Counsel re proposed ordinance.
(b) Consideration of motion to read Ordinance No. 108 , An
Ordinance of the Board of Directors of County
Sanitation District No. 1 of Orange County, California,
Amending Ordinance No. 104 Establishing Sewer
Connection Charges for Use of District Sewerage
Facilities, and Repealing Ordinance No. 105, 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. 108,
An Ordinance of the Board of Directors of County
Sanitation District No. 1 of Orange County, California,
Amending Ordinance No. 104 Establishing Sewer
Connection Charges for Use of District Sewerage
Facilities, and Repealing Ordinance No. 105, and pass
to second reading on June 11, 1986 .
( 4) Consideration of action on items relative to proposed
Ordinance No. 109, An Ordinance of the Board of Directors of
County Sanitation District No. 1 of Orange County,
California, Amending Ordinance No. 106 Establishing Sanitary
Sewer Service Charges, and Repealing Ordinance No. 107.
(a) Report of General Counsel re proposed ordinance.
(b) Consideration of motion to read Ordinance No. 109, An
Ordinance of the Board of Directors of County
Sanitation District No. 1 of Orange County, California,
Amending Ordinance No. 106 Establishing Sanitary Sewer
Service Charges, and Repealing Ordinance No. 107, by
title only, and waive reading of entire ordinance (must
be adopted by unanimous vote of Directors present) .
(c) Consideration of motion to introduce Ordinance No. 109,
An Ordinance of the Board of Directors of County
Sanitation District No. 1 of Orange County, California,
Amending Ordinance No. 106 Establishing Sanitary Sewer
Service Charges, and Repealing Ordinance No. 107, and
pass to second reading on June 11, 1986 .
(5) Other business and communications, if any
(6) Consideration of motion to adjourn `.✓
-2-
MANAGER'S AGENDA REPORT
County Sanitation Distdcb vo.t Offs a Box 8127
10844 Ellis Avenue
of Orange County, California Fountain Valley, Calif., 92708
T.1.,F• ws
Area Code 714
DISTRICT NO. 1 962244111
MANAGER'S REPORT TO DISTRICT NO. 1 DIRECTORS
MEETING DATE: MAY 28, 1986
Update on long-range financial program and consideration of amendments to existing sewer
connection charges and sanitary sewer service charges.
BACKGROUND
Last year, the Board authorized implementation of a long-range financial plan and
approved the following fee schedules to fund the District's requirements:
Connection Fees Effective 1/l/85
Single-Family Multi-Family Cofmnercial/Ind/
Fee Type Residential Residential Governmental/Other
One-time Connection $500/Dwelling $500/Dwelling $100/1,000 Sq. Ft.
Fee Unit Unit of Building
User Fees Effective 7/1/85
Water Meter Size Annual Fee
5/8e + 3/4e $26.40
1" + 1h. 52.50
2e 105.00
3" 210.00
4" 420.00
6" 840.00
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 necessary for District operations,
maintenance, rehabilitation and expansion activities. The program was adopted after
considerable study to avoid a projected long-range funding shortfall in revenues required
Page Two
May 28, 1986 _
to finance the District's operating expenses, which were escalating due to the rising
cost of advanced treatment as well as construction of master-planned treatment facilities
improvements.
STATUS OF DISTRICT'S LONG-RANGE FINANCIAL PROGRAM
Schedule A (attached) provides an overview of the District's financial position for the
next five years based on the existing fee structure. Although the District could
continue to operate through fiscal year 1986-87 and remain in a positive cash position at
the end of the year (refer to line 51, Fund Balance: $4,009,000 in 1986-87) , in the
following year the District will end up in a deficit position by year-end (line 51:
($249,000) in 1987-88) if no increases are made in the current fee structure. At the end
of the five-year period presented on Schedule A, the District would face a deficit of
approximately $18.75 million.
Although the recent formation of new District 14 has resulted in the District receiving
approximately $3,970,000 from the new district's purchase of capacity in the joint
treatment and disposal facilities and reduced District l's proportionate share of future
capital expansion of the joint facilities, the positive financial impacts of District
14's formation are offset by the Joint Boards' concurrent shift to a 100% flow-based
method of allocating ownership share of joint treatment works which increased District
l's required equity. The reason for this increase is District 1's lower proportionate
tax base which was previously a factor in calculating its joint works equity prior to the
change to a method that uses only flow.
Based on current projections, the District will have to more than double its rate
structure over the next five years to generate additional revenues to ensure its
financial integrity. Adoption of a systematic plan and schedule to do so will provide
for a stabilized long-range financial plan with annual rate increases sufficient to meet
its funding requirements. Immediate implementation of a revised fee structure will
result in smaller annual increases than if the increases are delayed.
Many economic factors could affect the rate structure requirements over the next several
years. However, the staff evaluates the District's financial position each year to
determine the impact of changing conditions and thus, modifications or delays in fee
increases in future years could be accommodated if appropriate. The following
recommendation is presented as a starting point for consideration of fee increases for
1986-87.
CONNECTION FEES
Staff is recommending that the Board 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/Dwelling Unit $100/1,000 Sq. Ft. of
Building
Recommended Fee $1,000/Dwelling unit $200/1,000 Sq. Ft. of v
Building
Page Three
May 28, 1986
The proposed increase will generate an additional $600,000, 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 B) ,
as well as the District's share of the master-planned expansion of the joint treatment
facilities. Proposed Ordinance No. 108 includes the recommended fee increases.
SUPPLEMENTAL USER FEES
Schedule C presents the District's financial position should the Board adopt the increase
in the connection fee as well as a schedule 20% annual increase in the District's
supplemental user fees. If the Board chooses to increase the supplemental user fees by
20% per year for the next five years, the additional fees and interest income over the
five years will total approximately $3.9 million.
Fee Schedule (20% Annual Increase)
Meter Size 1985-86* 1986-87 1987-88 1988-89 1989-90 1990-91
5/8" 6 3/4" 26.40 31.68 36.96 42.24 47.52 52.80
1" a lh" 52.50 63.00 73.50 84.00 94.50 105.00
2" 105.00 126.00 147.00 168.00 189.00 210.00
3" 210.00 252.00 294.00 336.00 378.00 420.00
4" 420.00 504.00 588.00 672.00 756.00 840.00
6" 840.00 1,008.00 1,176.00 1,344.00 1,512.00 1,680.00
+ Existing Fee Schedule
Annual Supplemental User Fee Revenues
961,000 1,154,000 1,385,000 1,662,000 1,995,000 2,394,000
Staff will review the financial projections and financial plan alternatives with the
Board at the meeting. In the event the Board wishes to initiate an ordinance raising
user fees beginning in fiscal year 1986-87, staff has agendized Ordinance No. 109 (Agenda
Item No. 4) .
Staff will review the proposed connection fee increase and supplemental user fee
alternatives and the accompanying cash flow projections in greater detail with the Board
at the meeting.
CCU SWSAffi1 R.�1D. 1 9/E/B6
SCSEDVLE B
�8 C!�'C[fI1d.TS19@ID9 PRIG
\�Rv ecC 'Atal CI.P. 1986 1987-0 198689 1989-90 1990-n 1991-92 199M3
Stnta Ne 01vik See[ ]00.000 Lpr000
M,000 ]00.000 ]W,000 ]00.000 900,000 im,000 LI0.000 1p1,000
�y {p�Iy�7p�I'�yIDRJ. 810.000 310.000 ]00.000 L10.000 L10.000 ]p0,000 llp.000 70p,000
fG tte FINeI�
RE : AGENDA ITEM NO , 3
ORDINANCE NO. 108
AN ORDINANCE OF THE BOARD OF DIRECTORS
OF COUNTY SANITATION DISTRICT NO. 1 OF
ORANGE COUNTY, CALIFORNIA AMENDING
... ORDINANCE No. 104 ESTABLISHING SEWER
CONNECTION CHARGES FOR USE OF DISTRICT
SEWERAGE FACILITIES, AND REPEALING
ORDINANCE NO. 105
The Board of Directors of County Sanitation District No. 1 of Orange County,
California, does hereby ORDAIN as follows:
Section 1. Section 702 of Ordinance No. 104 is hereby amended to read:
702 DISTRICT NO. 1 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
comiencing 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 $1,000 per dwelling unit.
(b) Connection charge for existing dwelling buildings:
For the connection of each existing dwelling building, the
connection charge shall be $1,000 per dwelling unit.
(c) Connection charge for new construction and existing
-1-
structures, other than dwelling buildings:
For all other new construction, including, but not limited
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 $1,000.
(d) Connection charge for repla�t buildings:
For new construction replacing formes 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.
(e) 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 $1,000 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
-2-
additional floor area contained within such new construction,
provided such new construction shall contain additional
plumbing fixture units.
Section 2. This Ordinance shall be effective July 1, 1986.
Section 3. Ordinance No. 105 is hereby repealed on the effective date
hereof, as it is inconsistent with the provisions of this Ordinance.
section 4. 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. 1 of Orange County, California, at a regular meeting held
Chairman of the Board of Directors,
County Sanitation District No. 1
of Orange County, California
ATTEST:
Secretary, Board of Directors of
County Sanitation District No. 1
of Orange County, California
-3-
;,-.RE: AGENDA ITEM No. 4
ORDINANCE NO. 109
AN ORDINANCE OF THE HOARD OF DIRECTORS
OF COUNTY SANITATION DISTRICT NO. 1 OF
ORANGE all M, CALIM1NIA, FN7 Mrw.
1n/ ORDINANCE NO. 106 ESTABLISHING SANITARY
SEWER SERVICE CHARGES, AND REPEALING
ORDINANCE NO. 107
The Board of Directors of County Sanitation District No. 1 of Orange County,
California, does hereby ORDAIN that Ordinance No. 106 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 facilities furnished by the District in connection with its
sanitation treatment corks and sewage collection system.
Revenues derived under the provisions of this Ordinance shall be used for
the acquisition, construction, reconstruction, aaintenance and operation of the
sewage collection facilities and wastewater treatmrent and disposal facilities of
as the District, together with costs of admdnistration and provisions for necessary
reserves.
Section 2: Annual Sanitary Sewer Service Charge. Cam:encing July 1, 1986,
each parcel of real property located within the District which is iirproved with
structures designed for residential, camiercial 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. 104 and 105, as amended, 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. Except as expressly provided in Section 5 hereof,
the provisions of this Ordinance shall apply to all properties in the District,
and no exception shall be provided for properties otherwise deemed exempt from
�.r
payment of taxes or assessments by provisions of the State Constitution or
statute, including properties caned by other public agencies or tax exalt
organizations.
Section 5: Exemption 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 bill is mailed.
All applications for rebate of the annual sewer service charge 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 and the amount of
wastewater discharged to the District's systems. Such inequities may include,
but are not limited to the following instances:
(a) the use of the parcel differs from the use indicated by the charge;
(b) no service connection to the District system exists from the parcel
charged;
(c) the principal water use is agricultural;
(d) any other use wherein the amount of wastewater discharged to the
District's system is significantly less on a regular basis than the
-2-
amount that would normally be expected to be discharged by the class of
property in question.
Section 6: Annual Charge Based on Fiscal Year. The sanitary sewer service
`.r
charge established by this Ordinance shall remain in effect until such time as
the rates adopted by the 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 Cade 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. 104 in an amount
equal to the annual sanitary sewer service charge established by Section 2 of
this Ordinance. Said credit shall be made in the same manner as credit is
allowed for ad valorem taxes pursuant to Section 302.6, 303.6 and 304.5(B) (4) of
Ordinance No. 104.
Section 9: Severability. If any provision 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.
-3-
Section 10: Effective Date. This Ordinance shall became effective July 1,
1986.
Section 11: Ordinance No. 107 is hereby repealed on the effective date ....
hereof, as it is inconsistent with the provisions of this Ordinance.
Section 12: 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 AMID ADOPTED by the Board of Directors of County Sanitation District
No. 1 of Orange County, California, at a regular meeting held
Chairman of the Board of Directors,
County Sanitation District No. 1
of Orange County, California
Secretary, Board of Directors of
County Sanitation District No. 1
of Orange County, California
-4-
Y'
TABLE 'A'
SIN3LE UNIT PARCELS
CONNECTED PETER SIZE 1986-87 ANNUAL FEE
5/8" aril 3/4" $
1" and 1}"
2"
3"
4"
6"
If a Parcel contains more than one water meter, then the
charge applicable to each meter shall be added together and
the scan levied against the parcel.
-5-