Loading...
HomeMy WebLinkAbout1987-04-15 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA V.O. BOX 8127.FOUNTAIN VALLEY, CALIFORNIA 92728-8127 10844 ELLIS. FOUNTAIN VALLEY. CALIFORNIA 92708-7018 (714)962-2411 April 9, 1987 NOTICE OF ADJOURNED REGULAR MEETING DISTRICT NO. 11 WEDNESDAY, APRIL 15, 1987 - 6:00 P.M. 10844 Ellis Avenue Fountain Valley, California Pursuant to adjournment of the regular meeting of April 8, 1987 , the Board of Directors of County Sanitation District No. 11 will meet in an adjourned regular meeting at the above hour and date to review the District' s Master Plan of Trunk Sewers and proposed Annexation No. 19 - Signal Bolas Annextion to County Sanitation District No. 11. Se etary BOARDS OF DIRECTORS County Sanitation Districts Post offlee sox 8127 of Orange County, California 10844 EI(is Avenue Fountain Valley, Calif., 92708 Tekpsp - Ana Code 714 DISTRICT No. 11 22-.24411 AGENDA ADJOURNED REGULAR MEETING WEDNESDAY, APRIL 15, 1987 - 6: 00 P.M. (1) Roll call (2) Staff Reports: (a) Review of District's Master Plan of Trunk Sewers to serve developing territories in and adjacent to the District (b) Review of request of Signal Bolas Corporation to annex 1,520 acres in the Bolas Chica area (Proposed Annexation No. 19 - Signal Bolas Annexation to County Sanitation District No. 11) (c) Review of long-term financial projections re District's capital and operating requirements (3) Board discussion and consideration of actions, if any (4) Other business and communications, if any (5) Consideration of motion to adjourn MANAGER'S AGENDA REPORT County Sanitation Districts Past Office Box 8127 of Orange County, California 10844 Ellis Avenue Fountain Valley, Calif., 92708 Telepl,cnm Area Code 714 DISTRICT NO. 11 962-24111 962-2411 Adjourned Regular Meeting April 15, 1987 - 6:00 p.m. At its regular meeting on April 8th, the Board of Directors of District No. 11 adjourned to Wednesday, April 15th, at 6:00 p.m. in the Districts' administrative offices to review the District's Master Plan of Trunk Sewers and proposed Annexation No. 19 - Signal Bolas Annexation to District No. 11. On March 11th the Board received and filed a petition from Signal Bolsa Corporation requesting annexation of 1,520 acres of territory to the District easterly of Pacific Coast Highway surrounded by the City of Huntington Beach, generally referred to as the Bolas Chica area, and referred the request for study. The Bolas Chica area, presently outside the District's boundaries but included within its sphere of influence, has been included in the District' s Master Plan of Sewerage Facilities to be eventually served by the District. At the meeting the staff will review in considerable detail the District's Master Plan of Sewerage Facilities, the request for Annexation of the Bolsa Chica area, and the District's long-range financial projections. COUNTY SANITATION DISTRICTS of ORANGE COUNTY, CALIFORNIA April 91 1987 10944 EWB AVENUE STAFF REPORT Oo.BOX0127 \V� FOUNTAIN VALLEY.0 UFORMA 82TR 127 COUNTY SANITATION DISTRICT NO. 11 0J,U9Wz411 MASTER PLAN OF SEWERAGE FACILITIES/PROPOSED BOLSA CHICA ANNEXATION/ LONG TERM FINANCIAL PROJECTIONS Purpose The purpose of this report is to provide the Board Members with background information on the long range master plan for providing sewerage services to District No. 11, particularly as it relates to the request for annexation of the Bolsa Chica area by the principal landowner, Signal Bolsa Corporation, and to update the Board on the Districts long-term financial projections. The report briefly summarizes the major considerations which will be discussed in further detail at the adjourned meeting of the Board of Directors on Wednesday, April 15th at 6:00 p.m. They include completion of the master planned Coast Trunk Sewer Collection System; development of the Bolsa Chica area, which is surrounded by Sanitation District No. 11 and included in its sphere of influence; terms of proposed Annexation No. 19 - Signal Bolsa Annexation; relief of the Slater Avenue Pump Station, which is nearing capacity; the rehabilitation and ultimate use of the Ocean Avenue Trunk Sewer; studies for potential future boundary adjustments between Districts 3 and 11; and financing of the District' s capital operating requirements. District No. 11 Drainage Area County Sanitation District No. 11 is split into two separate drainage areas; the southerly and the northwesterly portions of the City of Huntington Beach. The southerly portion drains through the existing reaches of the Coast Trunk Sewer directly to Treatment Plant No. 2 in Huntington Beach. The northwesterly portion, bounded by Goldenwest on the east, the San Diego Freeway on the north and including the Huntington Harbour area, drains to the Slater Avenue Pump Station between Goldenwest and Gothard, which lifts water over the Huntington Beach Mesa easterly to the Knott Interceptor and the Interplant Interceptor, owned jointly with other Districts, and then to Treatment Plant No. 2. Master Plan Overview Since the District' s formation, a Coast Trunk Sewer system extending northwesterly from Treatment Plant No. 2 has been envisioned to serve the Huntington Beach area. Early studies were based on the assumption that District No. 11 and the City of Huntington Beach boundaries would be co-terminous. However, the City first developed in a northeasterly direction and that portion of the City is now in District No. 3. In the early 1960's, the development of Huntington Harbour began, and the boundaries of District No. 11 were extended westerly to include that area. "' 1 Sewer master plans and studies have previously been prepared and/or updated for District No. 11 in 1947, 1957, 1962, 1970, 1977, and 1981. The current .,� plan; the Updated and Consolidated Master Plan of Trunk Sewers for Districts 2, 3 and 11, was prepared in 1983 (see attached Exhibit A) . The master plans have been the basis for the orderly development of the District' s sewerage system including cost sharing agreements for the Knott Interceptor (with District No. 3) , the Interplant Interceptor (a District No. 3/11 and Joint Works project) , and the first reaches of the District No. 11 backbone collector, the Coast Trunk Sewer. Over the last 10 years, the Coast Trunk Sewer has dominated planning and construction activities for District No. 11. The sewer has also been Included in the 1977 and 1979 Sewer Master Plans of the City of Huntington Beach. In 1979, the first leg of the Coast Trunk Sewer was awarded, extending from Treatment Plant No. 2 in Huntington Beach, northwesterly to Lake Street at Walnut Avenue. The completion of this project allowed the Hamilton Avenue Pump Station, located at Newland and Hamilton, to be abandoned and also relieved the Newland-Delaware Trunk Sewer and Atlanta Interceptor Sewer. In 1983, the Coast Trunk Sewer was extended to its present terminus, the west side of Goldenwest Street at Orange Avenue, providing relief for the Ocean Avenue Trunk Sewer. _ The 1983 Master Plan calls for the extension of the Coast Trunk Sewer to approximately Slater Avenue at Edwards Street. This would provide relief to the existing Slater Avenue Pump Station. When the Coast Trunk Sewer is eventually extended in Slater Avenue to just easterly of Goldenwest Street, the Slater Avenue Pump Station is proposed to be abandoned (discussed more fully below) . Upon completion of Coast Trunk Sewer system, District No. 11 could then sell its capacities in the Knott Interceptor and Interplant line (extending between Ellis Avenue and Treatment Plant No. 2 in Brookhurst Street) back to District No. 3. Planned future extensions to relieve other existing District No. 11 facilities include the Edwards Trunk Sewer, extending to McFadden Avenue from Slater, and relief lines in Heil , Edinger and McFadden Avenues. Slater Avenue Pump Station The existing Slater Avenue Pump Station contains five pumps. The station currently discharges at a peak rate of 20 million gallons a day (mgd) , the approximate design flow. Currently, all five pumps in the station are required to handle the flows. The fifth pump, which would normally be standby, now runs about 5 percent of the time. This encroaches upon reliability factors which should be maintained in an essential service facility of this type. If one of the five pumps were out for an extended period of time, the station would perform as expected; however, if two pumps were out, the station would be seriously overloaded. The Districts' �./ 2 maintenance division is currently providing extra monitoring of this station to ensure continual operation. ./ Staff is concerned about continuing and increasing demands being placed on the Slater Avenue Pump Station. The existing pump station' s capacity cannot be increased and, as pointed out above, is scheduled to be abandoned upon completion of the Coast Trunk pursuant to the District' s master plan. The City's planning department has been very diligent in informing District's staff of pending development tributary to the pump station, but even with a typical lag time of two to three years between planning inquiries and move-in for development, staff believes that the pump station reliability will soon be seriously compromised unless additional improvements are completed, such as the extension of the Coast Trunk Sewer, or the construction of new pumping facilities. Coast Trunk Sewer Collection System The existing terminus of the Coast Trunk Sewer is the west side of Goldenwest Street at Orange Avenue. District plans include extending this 54-inch pipe westerly in Palm Avenue to Seaview Avenue, located on the westerly boundary of the Huntington Mesa. The sewer is then planned to go northerly in Seaview Avenue along the bluff. Because the northwest portion of District No. 11 is at much lower elevations, a new pump station will be needed to lift sewage into the Coast Trunk Sewer, and one of the best suited sites is on the northerly side of the existing gas plant located in the bluff area just north of the present terminus of Seaview Avenue. The sewer would then continue northerly along the base of the Mesa Bluffs to Edwards Street south of Talbert Avenue, then north in Edwards Street to Slater Avenue where it would intercept the Springdale Relief Trunk and the Slater-Springdale Trunk Sewer. Included in the project would be a relief line in Slater Avenue draining east-to-west which would allow the Slater Avenue Pump Station to be removed from service. Future extensions in Edwards Street northerly to McFadden Avenue including relief laterals in Heil , Edinger and McFadden would complete the District No. 11 Master Plan system. The cost of the needed facilities which would allow abandonment of the Slater Avenue Pump Station are as follows: Item 1: Coast Trunk Sewer, Goldenwest Street at Orange Avenue to Edwards at Slater Avenue, including Slater Relief $ 9,150,000 Coast Lift Station: 4,100,000 Subtotal : $13,250,000 Edwards Trunk Sewer and Heil , Edinger and McFadden Relief Lines 6,050,000 Total : $19,300,000 3 District No. 11' s long-term facilities financing plan has been to fund construction of the Coast Trunk system by developers; to be paid back from future connection fees under a formal reimbursement agreement arrangement. Bolsa Chica Annexation Based on various actions over the last year, indications are that the Bolsa Chica area, approximately 1520 acres, will soon be developed. District staff has been invited to discussions with the City, the County of Orange, other interested agencies and the major landowner relative to this proposed development. The principal landowner, Signal Bolsa Corporation, has submitted a request to annex the territory, which has been received and filed by the Board and referred for study. The Bolsa Chica area is presently outside the boundary of District No. 11 but included within its sphere of influence. The District No. 11 master plan, and more specifically, the Coast Trunk system, has been designed to provide sewerage service to the Bolsa Chica area on the assumption that it would eventually annex to the District. There are several issues that must be addressed in considering the request for annexation including, but not limited to, the following: • Compliance with CEQA/EIR requirements • Funding • Capital Financing • Connection Fees Advance of connection fees by developers to finance construction of Coast Trunk to be repaid from future connection fees pursuant to standard reimbursement agreement. • Annexation Fee Signal Bolsa Corporation has proposed payment of the District' s annexation acreage fees on the 657 acres proposed for development, and requested deferral of fees on 863 acres which will remain in open space (largely wetlands). • Operation and Maintenance Financing • Tax Exchange District No. 11 operation and maintenance costs are currently financed by its proportionate share of the ad valorem tax allocation which presently averages 3.1% of the 1% basic tax levy. The alternative would be user fees. • Determination of necessary easements from private property owners or public right-of-way for sewerage facilities 4 • Local sewers Local sewer service within the current boundaries of District No. 11 is provided by the City of Huntington Beach. However; Signal Bolsa Corporation has sponsored a bill in the State Legislature providing for the formation of the Bolsa Bay Harbor and Conservation District which; among other things; would be empowered to provide local sewage collection and treatment services. Consent of other property owners Currently there are several other land owners within the proposed territory to be annexed, including the State of California, Metropolitan Water District of Southern California, W. R. Grace, Donald Godell ; Huntington Beach Company, and others. • Advance Funding and Construction Scheduling • Execution of an agreement with landowner setting forth the terms and conditions of the annexation Ocean Avenue Trunk Sewer As previously discussed, construction of the reaches completed to date of the new Coast Trunk Sewer to Goldenwest Street have relieved the old Ocean Avenue Trunk Sewer, a 16-inch to 24-inch sewer extending from Goldenwest Street to Lake Street in the first alley northerly of Pacific Coast Highway. This sewer was originally constructed by the City of Huntington Beach in 1914. District No. 11 assumed ownership under a purchase agreement from the City of Huntington Beach in the 1950s. Because of the new Coast Trunk, the Ocean Avenue Trunk Sewer now has little use as a District trunk sewer, but portions can still serve as an important local collector. The line serves a drainage area southerly of Walnut Avenue, including portions of the City' s downtown areas which are redeveloping, and thus could best be managed by the City of Huntington Beach. Portions of this sewer will need to be abandoned because certain planned developments will utilize the entire block between Pacific Coast Highway and Walnut Avenue. District No. 11 has engaged Boyle Engineering Corporation to study the Ocean Avenue Trunk Sewer, and preliminary reports are now being reviewed by both City and District staff. The report identifies which reaches of the Ocean Avenue Trunk Sewer should be rehabilitated and turned over the City of Huntington Beach for use as a local sewer, and which reaches will not be rehabilitated since they will be abandoned (see attached Exhibit B) . The District estimates that about $300,000 will be required to rehabilitate the sewer. Exchange of Service Areas/Boundary Adjustments An area generally bounded by Garfield Avenue on the south and Beach Boulevard on the east and the Central Park on the north within District No. 3 is now served under a basic accommodation agreement by District 5 No. 11 facilities, including the Newland-Delaware gravity sewer and the �...i Slater Avenue Pump Station. A second area bounded by the Talbert Channel on the south and west, the Santa Ana River on the east, and Hamilton Avenue on the north is within District No. 11, but is served largely by District No. 3 sewers. Staff will propose in the near future that these areas be studied to determine if boundary adjustments between the two Districts would be appropriate. Long Range Financial Projections As mentioned above, the long-range financial plan of District No. 11 for funding its master planned sewerage facilities provides that the Coast Trunk system shall be financed by the developers to be repaid from future connection fees under terms and conditions established in a standard master plan reimbursement agreement. This policy was reaffirmed in June 1986 when the Board of Directors in District No. 11 elected to continue the policy of pay-as-you-go capital financing rather than encumbering a long-term debt by issuance of certificates of participation. Attached Exhibit C details the District' s master planned collection system facilities along with the estimated cost and anticipated schedule of construction. Exhibit D is an updated ten-year statement of projected cash flow depicting the estimated financial position of the District. As the projections indicate, District No. 11 can expect to experience both capital and operating revenue shortfalls as soon as 1989. It will , therefore, be necessary for the Board to consider adjusting current fee schedules and additional revenue sources in order to maintain the District's financial integrity. Detailed Report at Adjourned Board Meeting to Review Master Plan and Proposed Annexation of Bolsa Chica The Board of Directors of District No. 11 has adjourned to Wednesday, April 15, 1987 at 6:00 p.m. to review the District' s master plan of sewerage facilities and the request of the Signal Bolsa Corporation to annex the Bolsa Chica area to the District. Staff and General Counsel will review this report in detail at the meeting. 6 EXHI IT A i 24' .1 2' .- 1'— 7'000, T tT�J Yb 21 ` 27' 27 U' 4 51' A 72 ,IPLANT ra[ PS — wa ! x LEGEND PLANr.2. PROPOSED SYSTEM CORRECTIONSz EXISTING TRUNK SEWER ---- EXISTING FORCE MAIN 0 EXISTING PUMP STATION FUTURE PUMP STATION ""`•� DISTRICT No. 11 BOUNDARY DISTRICT NO, 1 1 c UO/ltltlOdGO�9U/C33U/9U3 3'1A09 g am6� •o NOI11SOdSla a3SOdOHd jameS 3junil anuany ueaoO N73^O I 8 lIBIH%3 COLVIN INVO IVY } = I l"'!' a IU01'``ll11U UllIuto m mN m l ;" h 1IL1IU11'I II!Illilllllll L'IIilllll➢lU 'Ul X9mm KN0 twflllY Jl•^q• SC in In N a r it II 1' 1 I'I 20m. jz. tw Ill"ll ll:lll I:LI!I:!II:W � 11:; !I I �LIUI N N,AO N a n I:.: I!1(Illtlllllll I!illlll!Ililll IlillUU� LIIt1llV DNWmO2Z tw"il'Imgl i £9 a E m F O i i� kIUU,�R[Illll�WUUIIUIm ' i 1LLJ'�li I :I a 0.'m �` Illll!Illil!I I�IIIII f IIIILI •�IUlll;ll!l,l �tllll m z 9cF i ima 2 a z )-. IMfnllElp cot:,O0 S r p t: _ , m N IIUI11iLulll lu!Iil'Li6(I Will Iiii L FmOr�lisF ::;." 'II!1111;I!IJII I!lil!I!Il:ilil lil; Iaa: I,I!l,.Uli > o s a a IIIMIEEP111 R o Llll "!IUI;III U I'UIJIJ flu'�!,!,,��,i� UL> I w 111 ii!Iliflfl l I�Ilil!Ij III Iailllll) Will III I ITT. :';I'll WUICI:I:i:I `� 1011 I f II! Illllili�illlll I':IIIIIIE!iiil _ .`:'�' I�illlli J VF,tlll •nlq ! ! f ! I G 1 il!li !!i!:��I I;!lil: i'.!,iil Glllililillll GIIIi1;Ui .i;lil I:(II:I;i. I!lil IiCllllii'll;l I:I'„LI'i,:;l IIiIIIIIII!U IiIlGiil: , pill:,•- ! ::( rri Vill1 r ' . l140'! LII I;lII? r Wim I ,1 y m m rt Is ! c w C I pN III III FF °m I TI --7 7 C ._ 1 I I ' T_ -1 .. f I q ! I ICI . ICI !!IIIIII �hI �I i { III IllNl F' rr:(!:rlfrl IC II I : I:!all'II;0' lfli, u � LILYIIII r Illi� , I i I' II III �- 11!F!::IiuIIIIIJ:111!Il'II ,I111i1!I!II: I ll!'I`+III;!!ia��ha I11I,I : . iI "1'll' I I Ili I'I I I I ,!a I I I'fl I ' III ri Il 1L' '1 f I ':I!:!IIII I;I Illi!I!!I!IIIII 11'I ' v17T11 . �C�'A�I f1'I'�! Illlfi' TTlllil �i !Illml'a AT!;.l I I 1 1!111!I IIII!I'I'I►' IIII' ;; � I. ff :;l�l f;IGl �ll] 111111iiil ! nlll € 111 N Ill lNNI < l�lfl!IIIIIILFII I!If!flll!liIIIIIIJIIIII!!I l C= m Is 2 _ F I"lflnUTI!PilllflMTMIIIIilllil. lil!UIIIIIink, :::'I : .14 3= ° =s ` w COUNTY SANIIAIION DISTRICT NO.II 419107 SCNEOULE OF DISTRICT COLLECTION MYTH PROJECTS BAIIBI'C C PROJECT TOTAL 1 C.I.P. 1907-01 l9N-N 19W90 1990-91 1991.92 1992-93 1991.9e ........... ----------- - ----------- ----------- ----------- ---I------- ........... ........... ........... ----------- Radio linkM lelentry (1) I51000 j 15.000 Slater Ave. Popp Station Rehab. (a) 25.0N J 25,OA0 Ocean Assets bank Rehab. (A) 3N,0N J 50,000 250,000 Miscellaneous Projects (a) 175,00D 25,000 25,000 25,000 25,000 25,000 25,000 25,000 .......__ . . .. --Sub- total AN Fund 5151000 0 115,000 275,000 25,000 25.000 25,000 25,000 25,000 ........... . ._._..._ ----------- ----------- ----------- ----------- ----------- ----------- ----------- Ednrds trunk (3) (b) 3.400,000 ; 3,400,000 Acfsdden Relief Iron% (3) (c) 750.000 J 750,000 Edinger interceptor (3) To) 750.000 ! 750,000 Neil Relief Saner (3) (A) 750,000 750.000 Edinger Serer Parallel (3) (C) 400,000 ; 400,0N Coast trunk Serer (c)s 7,4N,0N 500,N0 2,900,000 3.500,000 500,000 Slater Relief Line (5) (c)t 1,750.000 100,000 500,000 1.150,000 Coast Nn Station and force Main (3) Icle 4,1N,000 j 100,000 2,000,000 2,000,000 NisnIlanon Projects (a) 530,000 j 50,000 50.000 50,000 50,000 50,000 50.000 50,000 ........_- J ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Sub-total FR Fund 19,650,0N J 0 750,000 5.450,000 6,700,000 550,000 S0,N0 50.000 6,100,000 ........... j __.�. -------I--- .-1-------- ----------- ----------- ----------- ---...--... ....I'll... Sub-Total District Construction 20,165,0N J 0 NS,ON S,725100 6.725,0N SFS,0N 73.00 73,000 6,12S,00 Garfield Runk Senr (7) (C)a 2,000,0N 500,00 1,500,N0 ........... j .....-.__ --------.- .._------- ----------- ----------- ----------- .......I... -.......... Sub9otal 0...leper Construction 2,00,000 1 6 0 0 NO.ND 1.S00,00 0 0 0 ........... ......._.. ._...._.. ----------- ----------- ----------- ----------- ........... ........... GRAND TOTAL 22.165,000 J 0 W,000 sms.oco 7,225,000 2,075,N0 75,N0 75,0N 6,125,000 ......... , .... .......mx: ........... ........... .t......... ........... ..........z ........... (a) fully Funded I. Meter-planed facilities presently under contraction (b) Partially Funded 2. Masterplanned facilitias presently under deign (C) Net Funded S. Nailer-plaMM facilities scheduled for future desigalcanstructiob t project to be Rnaned by developer under Saar Service Relebursesent Agreesenl Is Project to be fully financed by dnsloper COUNTY SANITATION DISTRICT NO. 11 4109187 CIS IT D STATENENT OF PROJECTED CASH FLOW FISCAL YEARS 1986-27 INROUGH 1995-96 preliminary projection 1991-927 LINE 1996-87 1997-88 1908-89 1989-90 1990-91 $-Year foul 199S-96 10-Yair total . ------ ------- ------- ------- ------- I ------------ ----------- ------------- OPERATING FOOD 1 Reserves 6 Carry-Owt From Last Year 2,SS7,000 2.222,000 1.919,000 1,399,000 273,000 ; 2,SS7,000 (1,506,000) 2,557.000 ----------- ----------- ----------- ----------- ----------- - ----------- ----------- ----------- REVENUE 2 she'. of It Is.Allocetied 1,934,000 2,202.000 2,482.000 2,198,000 3.154,000 12,510.000 22,908,000 35,490.AND 3 fees 213.000 226,000 236.000 249,000 261,000 1.1@.WO 1.519,000 2,701,000 a Internet 8 miscellaneous Zones 169,000 147,000 110,000 S9,000 0 ; 493,000 0 491,000 S Other Revenue 0 0 '---------' ----------- ---------'- ----------- --'-------- ----------- ----------- •---------- 6 TOTAL REVENUE 2,336,000 2,573,000 2,836.000 3,105,000 3,415,000 14.265,000 24,427,000 31.692,000 -'---...... ----------- ........... ........... ........... 1 ----------- ----------- ----------- 7 107AL AVAILABLE FUNDING 4,893.000 4,795.000 4.755.400 4.504,000 3,681.000 16,022,000 22,841,000 41.249,000 ----------- ........... ........... ........... ........'" , ----------- ........... ----------- EXPENDITURES 8 Share of Joint Works N 6 0 2,236,000 2,375,000 2,731,000 3,141.000 3,612,040 ; 14,095,000 21,009,030 42.104,000 9 Collection Trans N 6 0 and Other Oyer. 435.000 501,000 576,000 AAS,000 762,000 2,937,000 5,905.aA0 8,842,000 10 Other Expenditures 49.M 421,000 y00,000 1,376.000 4,778,040 6,154,000 ........... ........... ........... ........... ----------- i --'-'...... 11 TOTAL EXPENDITURES 2,671,000 2,876.000 3.356.000 4,231.000 S,271,000 ( 18,400,000 36,692,000 57,100,000 ----------- ----------- ----------- ----------- ----------- - -----"---• ----------- --- 12 hums B"try-Over to Meat Year 2.222,000 1,919,OA0 1.399,000 273,000 (l,SB6,000) (1,506,000) (15.851,000) (IS11511000) 13 Net Year's Dry period Fuming Requirements 1,336.000 1,438,000 1,678.000 2,116,000 2,637,000 2,637,000 7,738,000 7,138,000 ----------- ----------- ----------- ----------- ----------- i ----------- ----------- ----------- 16 . Food Golan,or (Deficit) 186,000 4B1,000 (279,000) (1,843,0001 (4,223,000) ( (4,223,000) (23,589,0 0) (23.589.000) ----------- -----r-rM ---'------- -------..:: ---------- ........n: .---------- :c:::s::r:: CAPITAL PUXD(S) ------------- - 1S Reserves 6 Carry-over Free Last Year 0.795,000 1,000,000 6,111,000 1,244,000 (1,915,000) B,79S,000 (3.293,0001 8,79S,000 ........... ----------- ----------- ----------- ----------- ------------ ----------- ----------- REVENUE 16 Construction Grant, 166,000 705,000 678.000 670,000 113,000 2,340.00) 113,000 2,453,00D 17 Fees: Contention $30,000 100.000 BOO,000 800,000 800.040 3,730,000 4,00 ,000 7,7M,000 18 Other 60,000 60,000 60,000 60.000 60.000 300,000 S00,e00 600.000 19 Sale of Capacity Rights 24,000 285,000 17.000 1,426,000 814,000 2.566.000 1,130,000 S,696,000 20 Interest a miscellaneps Income 591,000 500,000 261,000 0 0 1,352.00 0 1,351,000 21 Equity Sale W District 14 1,288.000 1,281,000 I,2B8,000 22 Flow-hued Equity Adjusteent 118,000 118.000 118,000 23 Other Inner 140,000 5.100.000 7,1SO.000 2.000.01E 15.250.000 15,2S0,000 ----------- ----------- ----------- ----------- ----------- i -----... ........... .....--.... 24 TOTAL REVENUE 2,777.000 3.050,000 7,216.000 10,114,000 3,187.000 26.911,000 S,513,000 32,687.000 ----------- ----------- ----------- ----------- '---------- i --- --------_-- ----------- . 25 TOTAL AVAILABLE FUNDING 11.572,000 11,052,00D 13.321,000 11.358.000 1,872,000 35,739,000 2,250.000 41,282,000 ----------- ----------- ----------- ........... --------'-- I .......-... ----------- ........... EM UIT D ( ` Pass 2. heliaieary P,.jecth. •s 1991-M1' 1916-87 1917-88 OW89 1989.90 1990-91 S•9ur Total I995.96 10-year total WiWDITWE3 .....------- 26 SOAU of Joint Nor" Treataent elect 3.324,000 4,082.000 6,SH,MO 5,648,000 2.690,000 22,102.000 41631,000 26,735,000 21 District Collection IOUs 1/0,OM MS.OM 5,72S,00 7,225,00 2,075,040 I 16,030.000 6,275,000 22,305.000 21 MssOurselenl AOreeaent Payaents /M,OM 400,000 ( 100,000 2,000,000 2,600,OM 29 Flu-based Ewity Adiustasnt 0 0 M OtMr Expenditures 140.OM LM,MO 100,000 ........... ........... __--....- •-•--"-'-.. ..-:_ __ i _......... ....__ .... .------_--- 31 TOTAL WPENDITWES 3.561.M0 6.911.001 12.4111.01) 13,273,000 5,L65.016 S9,032.000 12,906,000 S1,93B4000 32 laurvn 6 Carry-wer 0 Nut Our 1.041110I _ 6,III.MO 1,244,4110 (1.915.0001 13.291,M l i (3.293,M ) (10.656.000) 110.656,M0) TWOfUtlDl9) ............ ............ ............ sss:.s-..... -..s.sx---- ------..... ---....-.-. :::..:...-- -.------.-.. , 33 4serres B Carry-aver Fees Last year 26,010 19.000 II,OM 1,000 0 26,000 0 26,81 ..._.--_ ........... ........... ........... ._........ --------- ----------- ..-_------ AEVEAUE M In to" 63,M1 63,0M 55,000 61.M0 SLIM 1 294,040 214,M0 35 Interest 6 Nisceilanews IncoM 2,400 1.000 1.000 0 1 4,000 D 4.040 36 Othr Imes I 0 «. ..... ........... ........... ........._ ..-..__ ( ._........ __......... --.--•-.-— 37 TOTAL REVERE M.MO d1.M0 S1,000 6/,aM H.MI 296,OM 0 2M,OM ——------ ----I------ ..----....- H TOTAL AVAILABLE FWDINO 91,IM M,IM M.MI W,MI 51.101 ( 324,000 0 $24.400 WPEADITUIIS ) -.....-.---. 39 Bond principal 1 Interest 72,040 69,M0 67,OM 6S,IM 51.11141 ; 31/,00 321,000 /0 Mor Expenditure j ----------- ----------- •......... .�-__. _.__ ; — ------- ----------- -----.....- IOTAL M0 M H UPENOITURES nmo 69.000 67, ,MO ,MI AI.OM 0 321,M0 --.�__ _........ ........... _..__.. ..__•__ ( .._---.... -___. ---_----- 1 121 ReaerOd f Gr, OOr M Next Your 19,M0 II,OM I'MO 0 9 ( 0 0 0 /3 Next year's Dry Period Funding R9WLresents I9.M0 11,001) 1,000 0 0 0 0 0 _.-_•__- ----------- ----------- ---------_ _�._� I _._..... .--•-----:- ••---...-_ /1 Fund Balance or (Deficit) 0 0 0 0 0 0 0 0 SOCKWAY (Mjeated for Inter-Fund Transfers) /S -Reserves 1 GrryOver From Last Our 11,378.000 10.249,000 0,044,00 2.6/1,00 (1,642,000) 1 11,116.000 (/,879,000) 11,378,OM /6 Total AEYWW 5,170,000 5,607.000 10,106.00 13,213,0011 7.255,000 ( 41,507,040 29,970,00D 71,177,0110 _--------- --------- _.....---- ---------•- ---------• • _--------- ----------- .----_--.- 17 TOTAL AVAILABLE FUDINO 16,556,000 15,9H2OM I8,I50,0,MO IS1927,000 S.611,M0 ( H.evi'm 25.091,000 SO.W,OM /6 TOTAL EIPENDIMES 6,307,00 7,0111,0011 15,157,000 17,142•MO 9.5M,OM I 56,3M,OM 45,820,40D I0,362,M0 ... .....'-•_. --------.— .._....... --•-------- I ----------- ----------- ----------- j 19 Reserves B Carry-Over to Next year 10,249,00 I,441,101 2.693.000 (1,215,000) (3,979,M0) ( (3,503,000) (21,729,00) (26,507,000) SO Next Year's Dry Period Funding ReOoireaentf 1,355,M0 I,/H.MO 1,679,001, 2.116,0011 2,637,01M ; 2,617,00 7,736,OM 1,7n,OM _-------_ .......— -4......--. ..__.... .......... ( __------ ----------- .-_------- SI FUND BALANCE 0 (DEFICIT) 1,191,00 6,S92.M0 1,011,040 15.331,M0) (6,616,I01) I (6,I40,OM) (29,167,00) (31,2/5,OM) COUNTY SANITATION DISTRICTS of ORANGE COUNTY, CAEIFORNIA April 9; 1987 10944 EL42 AVENUE STAFF REPORT Fa BOX 2121 iO WAIN VALUE CAUFORNIA 927MG121 COUNTY SANITATION DISTRICT NO. 11 a14 1M2 11 MASTER PLAN OF SEWERAGE FACILITIES/PROPOSED BOLSA CHICA ANNEXATION/ LONG TERM FINANCIAL PROJECTIONS Purpose The purpose of this report is to provide the Board Members with background information on the long range master plan for providing sewerage services to District No. 11; particularly as it relates to the request for annexation of the Bolsa Chica area by the principal landowner, Signal Bolsa Corporation, and to update the Board on the Districts long-term financial projections. The report briefly summarizes the major considerations which will be discussed in further detail at the adjourned meeting of the Board of Directors on Wednesday, April 15th at 6:00 p.m. They include completion of the master planned Coast Trunk Sewer Collection System; development of the Bolsa Chica area, which is surrounded by Sanitation District No. 11 and included in its sphere of influence; terms of proposed Annexation No. 19 - Signal Bolsa Annexation; relief of the Slater Avenue Pump Station, which is nearing capacity; the rehabilitation and ultimate use of the Ocean Avenue Trunk Sewer; studies for potential future boundary adjustments between Districts 3 and 11; and financing of the District's capital operating requirements. District No. 11 Drainage Area County Sanitation District No. 11 is split into two separate drainage areas: the southerly and the northwesterly portions of the City of Huntington Beach. The southerly portion drains through the existing reaches of the Coast Trunk Sewer directly to Treatment Plant No. 2 in Huntington Beach. The northwesterly portion, bounded by Goldenwest on the east, the San Diego Freeway on the north and including the Huntington Harbour area, drains to the Slater Avenue Pump Station between Goldenwest and Gothard, which lifts water over the Huntington Beach Mesa easterly to the Knott Interceptor and the Interplant Interceptor, owned jointly with other Districts, and then to Treatment Plant No. 2. Master Plan Overview Since the District's formation, a Coast Trunk Sewer system extending northwesterly from Treatment Plant No. 2 has been envisioned to serve the Huntington Beach area. Early studies were based on the assumption that District No. 11 and the City of Huntington Beach boundaries would be co-terminous. However, the City first developed in a northeasterly direction and that portion of the City is now in District No. 3. In the early 1960's, the development of Huntington Harbour began, and the boundaries of District No. it were extended westerly to include that area. 1 Sewer master plans and studies have previously been prepared and/or updated for District No. it in 1947, 1957, 1962, 1970, 1977, and 1981. The current plan, the Updated and Consolidated Master Plan of Trunk Sewers for Districts 2, 3 and 11, was prepared in 1983 (see attached Exhibit A) . The master plans have been the basis for the orderly development of the District' s sewerage system including cost sharing agreements for the Knott Interceptor (with District No. 3) , the Interplant Interceptor (a District No. 3/11 and Joint Works project) , and the first reaches of the District No. 11 backbone collector, the Coast Trunk Sewer. Over the last 10 years, the Coast Trunk Sewer has dominated planning and construction activities for District No. 11. The sewer has also been included in the 1977 and 1979 Sewer Master Plans of the City of Huntington Beach. In 1979, the first leg of the Coast Trunk Sewer was awarded, extending from Treatment Plant No. 2 in Huntington Beach, northwesterly to Lake Street at Walnut Avenue. The completion of this project allowed the Hamilton Avenue Pump Station, located at Newland and Hamilton, to be abandoned and also relieved the Newland-Delaware Trunk Sewer and Atlanta Interceptor Sewer. In 1983, the Coast Trunk Sewer was extended to its present terminus, the west side of Goldenwest Street at Orange Avenue, providing relief for the Ocean Avenue Trunk Sewer. The 1983 Master Plan calls for the extension of the Coast Trunk Sewer to approximately Slater Avenue at Edwards Street. This would provide relief to the existing Slater Avenue Pump Station. When the Coast Trunk Sewer is eventually extended in Slater Avenue to just easterly of Goldenwest Street, the Slater Avenue Pump Station is proposed to be abandoned (discussed more fully below) . Upon completion of Coast Trunk Sewer system, District No. 11 could then sell its capacities in the Knott Interceptor and Interplant line (extending between Ellis Avenue and Treatment Plant No. 2 in Brookhurst Street) back to District No. 3. Planned future extensions to relieve other existing District No. 11 facilities include the Edwards Trunk Sewer, extending to McFadden Avenue from Slater, and relief lines in Heil , Edinger and McFadden Avenues. Slater Avenue Pump Station The existing Slater Avenue Pump Station contains five pumps. The station currently discharges at a peak rate of 20 million gallons a day (mgd) , the approximate design flow. Currently, all five pumps in the station are required to handle the flows. The fifth pump, which would normally be standby, now runs about 5 percent of the time. This encroaches upon reliability factors which should be maintained in an essential service facility of this type. If one of the five pumps were out for an extended period of time, the station would perform as expected; however, if two pumps were out, the station would be seriously overloaded. The Districts' r 2 4 maintenance division is currently providing extra monitoring of this station to ensure continual operation. Staff is concerned about continuing and increasing demands being placed on the Slater Avenue Pump Station. The existing pump station's capacity cannot be increased and, as pointed out above; is scheduled to be abandoned upon completion of the Coast Trunk pursuant to the District' s master plan. The City's planning department has been very diligent in informing District's staff of pending development tributary to the pump station, but even with a typical lag time of two to three years between planning inquiries and move-in for development, staff believes that the pump station reliability will soon be seriously compromised unless additional improvements are completed, such as the extension of the Coast Trunk Sewer, or the construction of new pumping facilities. Coast Trunk Sewer Collection System The existing terminus of the Coast Trunk Sewer is the west side of Goldenwest Street at Orange Avenue. District plans include extending this 54-inch pipe westerly in Palm Avenue to Seaview Avenue, located on the westerly boundary of the Huntington Mesa. The sewer is then planned to go northerly in Seaview Avenue along the bluff. Because the northwest portion of District No. 11 is at much lower elevations, a new pump station will be needed to lift sewage into the Coast Trunk Sewer, and one of the best suited sites is on the northerly side of the existing gas plant located in the bluff area just north of the present terminus of Seaview Avenue. The sewer would then continue northerly along the base of the Mesa Bluffs to Edwards Street south of Talbert Avenue, then north in Edwards Street to Slater Avenue where it would intercept the Springdale Relief Trunk and the Slater-Springdale Trunk Sewer. Included in the project would be a relief line in Slater Avenue draining east-to-west which would allow the Slater Avenue Pump Station to be removed from service. Future extensions in Edwards Street northerly to McFadden Avenue including relief laterals in Heil , Edinger and McFadden would complete the District No. 11 Master Plan system. The cost of the needed facilities which would allow abandonment of the Slater Avenue Pump Station are as follows: Item 1: Coast Trunk Sewer, Goldenwest Street at Orange Avenue to Edwards at Slater Avenue, including Slater Relief $ 91150,000 Coast Lift Station: 4,100,000 Subtotal : $13,250,000 Edwards Trunk Sewer and Heil , Edinger and McFadden Relief Lines 62050,000 Total : $19,300,000 3 V District No. 11' s long-term facilities financing plan has been to fund construction of the Coast Trunk system by developers, to be paid back from future connection fees under a formal reimbursement agreement arrangement. Bolsa Chica Annexation Based on various actions over the last year, indications are that the Bolsa Chica area, approximately 1520 acres, will soon be developed. District staff has been invited to discussions with the City, the County of Orange, other interested agencies and the major landowner relative to this proposed development. The principal landowner, Signal Bolsa Corporation, has submitted a request to annex the territory, which has been received and filed by the Board and referred for study. The Bolsa Chica area is presently outside the boundary of District No. it but included within its sphere of influence. The District No. 11 master plan, and more specifically, the Coast Trunk system, has been designed to provide sewerage service to the Bolsa Chica area on the assumption that it would eventually annex to the District. There are several issues that must be addressed in considering the request ! (F for annexation including, but not limited to, the following: `^ • Compliance with CEQA/EIR requirements 114j, L • Funding 1jd • Capital Financing G • Connection Fees Advance of connection fees by developers to finance construction of Coast Trunk to be repaid from future connection fees pursuant to standard reimbursement agreement. • Annexation Fee Signal Bolsa Corporation has proposed payment of the District' s annexation acreage fees on the 657 acres proposed for development, and requested deferral of fees on 863 acres which will remain in open space (largely wetlands) . • Operation and Maintenance Financing • Tax Exchange District No. 11 operation and maintenance costs are currently financed by its proportionate share of the ad valorem tax allocation which presently averages 3.1% of the 1% basic tax levy. The alternative would be user fees. • Determination of necessary easements from private property owners or public right-of-way for sewerage facilities r./ 4 • Local sewers . / Local sewer service within the current boundaries of District No. 11 is provided by the City of Huntington Beach. However, Signal Bolsa Corporation has sponsored a bill in the State Legislature providing for the formation of the Bolsa Bay Harbor and Conservation District which, among other things; would be empowered to provide local sewage collection and treatment services. • Consent of other property owners Currently there are several other land owners within the proposed territory to be annexed, including the State of California, Metropolitan Water District of Southern California, W. R. Grace, Donald Godell , Huntington Beach Company, and others. • Advance Funding,and Construction Scheduling • Execution of an agreement with landowner setting forth the terms and conditions of the annexation Ocean Avenue Trunk Sewer As previously discussed, construction of the reaches completed to date of the new Coast Trunk Sewer to Goldenwest Street have relieved the old Ocean Avenue Trunk Sewer, a 16-inch to 24-inch sewer extending from Goldenwest Street to Lake Street in the first alley northerly of Pacific Coast Highway. This sewer was originally constructed by the City of Huntington Beach in 1914. District No. 11 assumed ownership under a purchase agreement from the City of Huntington Beach in the 1950s. Because of the new Coast Trunk, the Ocean Avenue Trunk Sewer now has little use as a District trunk sewer, but portions can still serve as an important local collector. The line serves a drainage area southerly of Walnut Avenue, including portions of the City's downtown areas which are redeveloping, and thus could best be managed by the City of Huntington Beach. Portions of this sewer will need to be abandoned because certain planned developments will utilize the entire block between Pacific Coast Highway and Walnut Avenue. District No. 11 has engaged Boyle Engineering Corporation to study the Ocean Avenue Trunk Sewer, and preliminary reports are now being reviewed by both City and District staff. The report identifies which reaches of the Ocean Avenue Trunk Sewer should be rehabilitated and turned over the City of Huntington Beach for use as a local sewer, and which reaches will not be rehabilitated since they will be abandoned (see attached Exhibit B) . The District estimates that about $300,000 will be required to rehabilitate the sewer. Exchange of Service Areas/Boundary Adjustments An area generally bounded by Garfield Avenue on the south and Beach Boulevard on the east and the Central Park on the north within District No. 3 is now served under a basic accommodation agreement by District 5 No. 11 facilities, including the Newland-Delaware gravity sewer and the .�/ Slater Avenue Pump Station. A second area bounded by the Talbert Channel on the south and west, the Santa Ana River on the east, and Hamilton Avenue on the north is within District No. 11, but is served largely by District No. 3 sewers. Staff will propose in the near future that these areas be studied to determine if boundary adjustments between the two Districts would be appropriate. Long Range Financial Projections As mentioned above, the long-range financial plan of District No. 11 for funding its master planned sewerage facilities provides that the Coast Trunk system shall be financed by the developers to be repaid from future connection fees under terms and conditions established in a standard master plan reimbursement agreement. This policy was reaffirmed in June 1986 when the Board of Directors in District No. 11 elected to continue the policy of pay-as-you-go capital financing rather than encumbering a long-term debt by issuance of certificates of participation. Attached Exhibit C details the District' s master planned collection system facilities along with the estimated cost and anticipated schedule of construction. Exhibit D is an updated ten-year statement of projected cash flow depicting the estimated financial position of the District. As the projections indicate, District No. 11 can expect to experience both capital and operating revenue shortfalls as soon as 1989. It will , therefore, be necessary for the Board to consider adjusting current fee schedules and additional revenue sources in order to maintain the District's financial integrity. Detailed Report at Adjourned Board Meeting to Review Master Plan and Proposed Annexation of Bolsa Chica The Board of Directors of District No. 11 has adjourned to Wednesday, April 15, 1987 at 6:00 p.m. to review the District's master plan of sewerage facilities and the request of the Signal Bolsa Corporation to annex the Bolsa Chica area to the District. Staff and General Counsel will review this report in detail at the meeting. 6 t-•--�- E%HIBIT A a. i 7- 21 5 47 — � 27 fJJ S1 1 Q 1 II f 72 PS I -- � W LEGEND PLANT, 2 PROPOSED SYSTEM CORRECTIONS EXISTING TRUNK SEWER --- EXISTING FORCE MAIN \` EXISTING PUMP STATION Q FUTURE PUMP STATION w� DISTRICT No. ; 1 BOUNDARY DISTRICT No, 1 1 UO/l[l2YOCtJOJ Dul&d 3UYJU3 37^oe E a�n6i3 .0, NOIlISOdSIG O3SOdOHd JamaS )iunil anuany ue930 NIM0 I I cl 9 lI9IHX3 COUNTY SANITATION DISTRICT NO. 11 4/09/87 ®IBIS D STATEMENT OF PROJECTED CASH FLa FISCAL YEARS , THAEON 1995-96 Pnlioinery Projection 92/ 5-Year Total LINE 1986-87 1987-G 1911-89 1989-90 1990.91 MS 6 10-Far --GI------ OPERA7106 E40 , t Aeserrn 1 Corry-Over Fmu brt Year 21551.NO 2.M M 1.919.0E 1,399.000 213,000 2,SS7,000 (1,586,00) 2.557,0E ........... ........_. ......... ....___-- . ........... ----------- ----------- ------.._.. REVENUE 2 Share of 11 Tax Allocation 1.954.000 2.202,000 2.402.0110 2,799.000 5,151,000 12.SE,ON 22,901,000 35,/91,000 ` 3 Fees I13,000 224.000 236,No 249,0N 261,000 1,182.000 1,519,0E 2.701,000 / Interest 6 Hiscellaaoue Isom 169,N0 Ie7,ON III,ON $9,000 0 493,000 0 493,00 1 5 TiMr Grenue 0 0 --------_. _......_. .-_------- ----------- ----------- ----------- ----------- ----------- ( 6 TOTAL REVENUE 1,3U.ON 2.573,000 2,136.000 3,105,000 3,415,0N 18,265,N0 24,421.040 11,692,040 ' . ......... ........... ._........ .......... ----------- ----------- ......----- --- ------- 7 TOTAL AVAILABLE ENDING 1,53.0E 4,795,000 0,755,0E 4,501,0E J,688,000 i 16,822.000 22,841,000 81,249,000 ---........ ----------- ----------- ----------- ----------- - ----------- ----------- ----------- EIPODIMES 8 Share of Joint Yorks A A O 2,236,0E 2,375.0E 2,731,0E 3,141,0E 3,612,000 14,095,000 21,09,NO 41.1E,00 9 CORICtieo Systa N A 0 Rod Dthr bar. 11 135,0E 501,00 576,000 663,ON 762.N0 2.937,000 5,E5.N0 8,112,N0 10 Other Imoditures y„�i �� 49,000 827,0E E0,E0 1.376,000 1,771,E0 6,151.N0 ---_._... _......... --------- ----------- --------- ----------- ........... 11 TOTAL EXPENDITURES 2,671.0E 2,876,ON 3.3E,000 1,231,0E 5.2711H O i 11,401,0E 38,692.ON0 57,I00,E11 ........... ......... ..._...... ........_. .._..._.- i ........... ........... ........... 12 Reserves A tarry-Over G Nest Far 2,222,000 MESA" 1.SN,NO 113,0E (1m5oo.Ml i (1m566,ON) MISS) M) (IS,151,E0) l3 Net Fear's Dry Period Funding Requiresents 1,S16,ON I'myoN 1.670,000 2.111,E0 2,611,0E ; 2,631,E0 7,711,0E 7,731,00E i _._... _......... .__...... --.._..... .._....... . ......_... ----------- ------....- /1 Fund Balance or (Deficit) -_016.000 "I'm (271,000) (1,843.000) (1.223.0E) (1,223,No) (23,5119,000) (23,519.000) CAPITAL FEDIS) i IS Raerm 1 Carry-over Fred Last Year �`)� 1.715.0E 1.0N.000 {,III,IN 1,211,0E (I.M,N0) i 1,71S.E0 (S.M. o) 1,795,Ne -------- ... ..._._. ----------- ......—._ ...._.—.'. '.._._._ ..._._ RREVENUE ...._..._ 16 Construction Trusts % 106.0E 705,0E 411,00 678,00 MAN 2,340.0E 113,000 2,153,0E i 17 Fees: Connection r S30,000 BN.000 Room NOON BE,NO 3,730,0E 4.00,E0 7,730.ON i 11 Other 2 ` /--40;0E oo,OE 60. 40,000 3E,E0 SN,040 NOON l9 Lla of CuedcitY Ai9Ats 2/,000 285,00E 11,0E 1,126,N0 81/,00 2.Sff,ND 1,130,1E 3,6N,NO ( 20 Interest a miscellaneous Inca, 591,000 No 261,000 0 1.352,000 0 1,352,0E i 21 Equity Sale to District 1/ 1,291,0E I,M,N0 1,3E.040 1 22 Fla-based Equity Mlustant 118,0E 111,0E 116,E0 23 Other Innon Ioo.m S,400,00 7,I50,140 2,040.040 15.250,NO 15,250,N0 2a TOTAL REVENUE 2,777,E0 3.050,000 7.216,0E 10,111,000 3,7/7.000 26.941,000 5,S13,0E 32,117,0E 25 TOTAL AVAILABLE FUNDING 11,572.000 11,050,000 13,327,0E 11.351,000 1.172.000 35,739,0E 2.250.0410 11,212,ON ........... ........... ........... ........... ........... ........... ........... .-------- EM31111C n Page 2 Preliminary Projection 199S_92/ 1906-81 1981-018 i -....-• -"-.- -a - 1 5-yeas Total 1995-% 10-Tu fatal ---_-- ----"-- ---- -• EXPENDITURES •---_•-•-•- _.-__ _._. 26 Share of Joint Boris Treatment Plant 3,324,000 4,082,000 6,S58_000 5,618,000 2,690,000 1 22,IO2,000 1,01.0111A 2{,73S,Ow 27 District collection system 1/O,aO B65,Ow 5,I2S,w0 7,7J5,0w 2,O/S,Ow 16,Ow,Ow {,215,010 2l,w5,Ow 28 Reimbursement Agreement Patients 400.000 00,000 w0,Dw 2,a1,a0 2,100,O10 29 Fin-band Equity Adjustment 0 a iw Other Expenditures •Iw,.w i I001000 Iw,Ow 31 TOTAL EXPENDITURES 3,561,000 1,917,000 12,Oww0 0, 13.273. 0 5,165,0011 a,w 9a Ow 2,0D0 12, ,000 51,9u, 32 Rnerues 1 Carry-ner to Meet yur B.ON.Ow -1.2N.a1- (1,91S,Oa1 (3,293,Ba1 i (3,291,0a1 (10,656.0a) (10,656,Oa)- BOND MO(S) 31 Aemerves B Grry-Over Frem tut year 26.41011 19 BAN 14,000 1.000 0 26.00 a 26,000 --------- ------- -- - '------- --------- -_---" ----------- ----------- REVENUE It In Levy 63,000 63,000 53,000 6/,000 51,Ow 1a,a1 294,005 35 Interest 6 Nisnllannus Income 2,w0 1,000 1,000 0 0 l I,1110 0 4,000 36 Other Intone ' 0 i 37 TOTAL REVENUE 65,Ow 61,040 S4,000 61,00 51,00 MOBO 0 218,000 SB TOTAL AVAILABLE FUNDING 91,000 83,000 68,Ow 65.000 511000 SH.00 0 324,000 --_---- __------- `-_------. ----------- ---- ----. --------'-- ----------- EXPENDITURES , ---------_-- 39 Bond Principal \ Interest 72,a0 69,a0 67.000 65,0w $1,O0 S26,a1 324,000 10 Other Expenditures , /l wlAl EXPENDITURES 72,O011 69,00 67,Oa 65,O00 SI�,Oa i1 a1,a0 --_ 0- _ 32/.w0 12 Reserves \ Wry-Over to Neel yes, 19,w0 , a,0a I,a0 0 ( 20 0 0 0 I3 Next year's Dry Period Funding Requirements 19,Ow II,NO -• - 1.0a- 0 `--•.0 ( 0 1 0 - 19'M ----_--- -------_ 1 -._._ /1 Fund Balance or (Deficit) 1 0 0 0 0 ; 0 0 0 SUNXABy (Adlmeted I., mau-Fund Transfers) /5 Rmeervos a GrtY-0rer From tut Ynr 11, 006 10,249.0a I,IN,w f6Nw�1 ,O 6/7,0w 0a 1 I 11,BAN, (/,879,0w) 11,578,000 16 TOTAL REVENUE 5,178.Oa S,a7,Ow IO,Ia,000 I1.L1,000 �;253,w0 i II,w1,0011 19,970,000 71.477.000 ------ ---------_ -_--__ ..-m__ _-------- , -••------_� ••--------- ........... 1/ TOTAL AVAILABLE fUXDIX6 I6,556,Ia 15,9l6,Oa IB,Iw,w0 13,921,Oa 5,611,Oa 'xii- gS,a1,w0 B2.8551000 IB TOTAL EXPENDITURES 6.307.00 1.M M 15.457,000 17.142,Ow 9,690,000 56,3a,040 46,120,000 1a,362,000 j 19 Reserves\Carry-Omer w Next year 10,2/9,w0 B4ON,Oa 2,69l,Ow (1,21S,0a� 19,Oa) ( (J,507, --• (fl,129,Ow1 126,w1,wo1 50 Next Year's Dry marine Funding Rewireaents I,SSS,0a 1,152,ow 1,679.040 `2,I16,a8 , 2.137,014 7,738,000 7,738,000 51 FOND BALANCE 0 (DEFICIT) 8.191.000- •6.92-000 -L,011-0a' (3.32.a0) (6.616,Oa) ( ({,1/O.Ow1 (29.161.000) (34.245,000) CWNTY SRNITAQON GISTAICT N0.11 419187 SCREW OF I SIRICI COLLECTION SYSTEM PROJECTS EXHIBIT C PROJECT TOTAL C.I.P. 1987-W 1988-09 1989-90 1990-91 1991-92 1992-93 1993-94 ........... ----------- 1 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Radio tinted %mastry (a) 15,000 ; 15,000 Slater Ave. Pop SWAP Rehab. (a) 2S,p0 ; 25,000 0eern Avenue Trunk Rehab. (a) 3W,W0 ! 50,00 250.00 Niscellaneoes Project, (A) 175,000 23,000 25,440 25,UW 25,000 25,000 25.000 25,00 ----------- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Dub-Wtal ACO TOM 5151000 0 113,00 275,40 25,000 25,000 25,400 25,000 25,000 ........... ........... ........... ........... ........... ........... ........... ........... ........... Edeares Trunk (3) IN) 3,40,00 ; 3,400.WO Rcfadden Relief trunk (3) (c) 750,000 ; 750,0W Edinger Interceptor (3) (c) 750.000 ! 750,040 Neil Relief son, (3) (a) 750,000 ; ISO,000 Edinger Spar Parallel (3) (c) 400,000 ( 00,000 Copt Trunk Sever (c)t 7,400,000 SW,OW 2,900.000 3,500,000 500,000 Slater Relief line (3) (c)t 1,750.POP i 100.000 SW,000 111501010 Coast Pump Station and Force Main (3) (e)t 4,10,40 ( 10,000 2.000,000 2.00,000 A1sCollanuus Projects (a) 550,000 $0,000 SO,WO 50,000 50,OW SO,oW $0,000 5o,000 ----------- I ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Sub-total FR Fund 19,650,000 0 750,000 5,450.040 6.700.000 550,000 $0.00 SO,OW 6,I00,00 ........... ---------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Sub-TOtal District Construction 20.165.000 0 865,000 5.725.000 6,725,000 575.000 75,000 75,000 6.125,00 ........... i ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- CarfUld Trunk Stlar (3) (c)tt 2,000,000 50,000 115001000 ........... i ........... ---------- ----------- ----------- ........... ----------- ........... ........... Sub-total 0ueloper Contraction 2,000,000 0 0 0 SO0,000 I.W01000 0 0 0 ........... ........... ----------- ----------- ----------- ----------- ----------- ----------- .---.------ CRANO TOTAL 22,16S,000 0 865,000 5,725,00 7.225,000 21075,000 75,OW 7S,000 6,123,00 (a) Fully ranged I. Naster-planned facilities presently ardor Construction (b) Partially Funded 2. Rasta-planned facilities Presently under design (c) Not Funded S. Mater-planned facilities scheduled for future desigaleoutruction t PCojpl to be financed by developer Ungar Suer Service Remburnment Agreeeent an Project to be fully fine aced by developer MEETING DATE April 15, 1987 TIME 6:00 pm DISTRICTS 11 DISTRICT 1 JOINT BOARDS (EDGAR)........HOESTEREY..._ _ _ (PICKLER)..........SAY......... _ (CRANK)........HANSON...... _ _ (FRIED)............BI60NGER...._ "NO" (YOUNG)........GRISET... _ _ (NORBY)............CATLIN...... (ROTH).........STANTON.....= _ _ (RISHER)...........CLIFT....... (PLUMMER)..........COX......... DISTRICT 2 (PERRY)............CULVER...... (KENNEDY)..........EDGAR....... (NORBY)........CATLIN...... _ _ (MC COME)..........GRIFF IN..... (KEDEL)........MAHONEY..... _ _ (YOUNG)............GRISET...... (PICKLER)......DAY......... _ _ (CRANK)............HANSON...... (FRIED)........BIGONGER...._ _ _ (COX)..............HART........ (YOUNG)........GRISET...... _ _ (EDGAR)............MOESTEREY..._ _ (NEL SON).......LEYTON...... _ _ (CORONADO).........KAREL....... (SCOTT)........NEAL........ (WINCXELL).........KELLY....... (DOWNEY).......NEWTON...... _ _ (EDGAR)............KENNEDY..... (CUL'ER).......PERRY......._ _ _ (NELSON)...........LEPTON...... _ (FASB ENDER)....SILZEL...... _ _ (WEDEL)............MAHONEY..... (PEREZ)........SMITH....... _ _ (PLUMMER)..........MAURER...... (ROTH).........STRNTON....._ _ _ (GREEN. P).........MAYS........ _ (AGRAN)............MILLER. S..._ DISTRICT 3 (BIGONGER).........MURPHY...... (SCOTT)............NEAL........ (HERMAN).......POLIS ...... (SUTTON)...........NELSON...... (NEISXAUPT)....SAPIEN......_ _ _ (DOWNEY)...........NEWTON...... (PICKLER)......BAY......... _ _ (CULVER)...........PERRY....... (NORBY)........CATLIN....... _ _ (HERMAN)...........POLLS....... (RISHER).......CLIFT.......� _ _ (NEISHAUPT)........SAPIEN......_ (PERRY)........CULVER......� _ _ (WILES)............SIEFEN...... (MC CUNE)......GRIFFIN..... _ _ (FASBENDER)........SILZEL......_ (YOUNG)........GRISET...... _ _ (PEREZ)............SMITH......._ _ (CORONADO).....KANEL....... _ _ (ROTH).............STANTON....._ _ (KINCHELL).....KELLY.......__ _ _ (NELSON)...........SUTTON......_ (KEDEL)........MAHONEY....._ _ _ (MILLER. D)........SWAN........_ _ (SCOTT)........NEAL........ (SELVAGGI).........SYLVIA...... (SUTTON).......NELSON......__. _ _ (GREEN.H/JOMNSON)..WAHNER...... _ (WILES)........SIEFEN......_ (ROTE).........STANTON....._ (SELVAGOI).....SYLVIA......_ STAFF: DISTRICT 5 SYLVESTER CLARKE......✓ CAWES.......J� (COW)..........MART........ _ _ ANDERSO ....ems (ROTH).........COX.........— _ _ BUTLER...... (ROTH) _ _ BUTLER...... B ........ ur DISTRICT 6 ,, KYLE .......J� KYLE......... ( )......M AER......— __ YIN LRNGEN (PLUMMER ......MAURER KINSOR...... (ROTH)......... STANTON..... STREED......._BC CLAWSO CLAKSON..... DISTRICT 1 LOOTEN INDER....... UNDER...... (ABRAM)........MILLER......� DEBLIEUX...... (PLUMMER)......COX.... 5... — _ TALEBI...... (PLUNGER)......COX........._ _ _ MOLL........ (YOUNG)........SMISET TH......._ (ROTH).........SMITH....... (ROTE).........STANTON ER...... _ (GREEN, X).....WAKAXNER......� _ QJff AWOODRUFF TKINS......�C HOHENS......_ DISTRICT 11 HOWARD........... (RITH)...).....KELLY STANTON.. ✓ HUNT........ (BOTH).........MAYS........ — — KEITH NOPF.......J� (GREEN. P).....NRYS........y�_ _ LINDSTRO ..._ LINCH......._ DISTRICT 13 LYNCH....... (NELSON).......MUTTDN...... YOUNG....... _ ((BIGONEER).....SAY......... PICNLER)......BAY.........._ (PEREZ)........SM1 TH....... (ROTH).........STANTON..... _ _ C { CJ+aLt�A��✓�'� \-w/ DISTRICT lA (AGRAN)........MILLER. S... (MILLER. D)....SWAN........ (EDO")........KENNEDY....._ _ __ (PEREZ)........SNITH......._ (ROT,).........STANTON....._ OA/O9/87 PLEASE SIGN IN DISTRICT 11 ADJOURNED REGULAR MEETING Wednesday, April 15, 1987 - 6: 00 P.M. NAME: FIRM OR AGENCY: WOOD (WA wo/UEtwJ (S/&IvgI) C�-�•�-cps-.`- �1.l5dfl� u_3&teE.�s ems. � ha�x-ytt�►ul�,y DISTRICT 11 ADJOURNED MEETING NOTES APRIL 15, 1987 - 6:00 P.M. $2(a)&(b) - Staff report re Dist's Master Plan & annexation of Bolsa Chica area Tan Dawes addressed the Board and referred to the written staff report mailed to Directors. He then pointed to various maps on the wall as he reported that when District 11 was formed in 1947, the District's boundary was coterminous with that of the City of Huntington Basch. As the City expanded easterly, part of the City was in District 3. 60% is in District 11 and the rest is in District 3. In the center of the District is the Bolsa Chios area. Over the years the southeast part of the District has been sewered through individual collectors owned by District 11 which drain into facilities awned by District 3. Beginning in 1979 District 11 started its own Master Plan collection system with the Coast Trunk Sewer which began at the Huntington Beach treatment plant and extended northwesterly along the beach. Over the last 15 years the Coast Trunk Sewer has dominated planning and construction activities in District U. He continued to review the attached report re [rester plan overview. Tan mentioned that rehabilitation of the Ocean Avenue Trunk, which was purchased from the City of Huntington Beach, would cost about $300,000. Large portions of it will be abandoned so they won't have to be rehabilitated. Chairmen Kelly camiented that $300,000 doesn't sound like much for so large a project. He clarified that this is not a part of the annexation issue. Tam Dawes stated that that was correct. Tan then reported on the Signal Bolsa request for annexation of 1,520 acres. He advised that Signal Boles. and the District's staff are working on an agreement to complete the annexation and fund advances by Signal Bolsa. The annexation is proposed in two parts. The annexation and payment of fees on 650 acres which would be inhabited, and the payment of fees on the second part—about 900 acres which would largely be wetlands and other uses which would be transferred to other public agencies—would be deferred. It would be annexed but part of the fees not paid until later when it is developed. The fees would be due and collectible then. Kelly stated that the 900 acres of wetlands must be maintained. Asked if we were suggesting that there is not a need for sewage disposal with regard to the oil industry? Tan Dawes replied no, he was referring to residential use. This area would not be eligible for anyone, including the oil operation. If oil operator wants to discharge oil or brine, they would have to make arrangements with our industrial waste Department and would pay considerable fees to do so. Kelly camiented further on the sewage potential of the oil industry. Thought we have to reconsider whether this area should be deferred or not. Tom agreed that there are a lot of things to study and that is one of then. Tan added that one important consideration is the CEQA documents which must be completed. Right now it hasn't been decided how they will be handled. Another big issue is funding. The District does have a considerable need for funds. Capital financing must be considered very carefully. The Bolsa Chica area cannot receive sewer service without completion of the Coast Trunk Sewer. Connection fees and annexation fees are part of an agreement that is being studied by staff and legal counsel. Another concern is operations and maintenance funding. A tax exchange is one option. we also need to obtain easements from the landowners in order to construct the Coast Trunk Sewer. There are also local issues to be considered. The Sanitation Districts do not provide the local sewer service. There are 8 or 9 property owners of the territory within the proposed Signal Bolsa Annexation. All the others must agree or not be included in the �..i annexation. Question was asked by member of the public, how long will construction of the Coast Trunk Sewer take to the Bolas Chica area? Tan Dawes advised 2-3 years but that time will start when funding sources are identified. Pia have done some preliminary studies and Signal Bolas has done sane. Have a good idea on an alignment but have only done just some rough cost estimates. Tan then reported the long-range plan for the District will relieve the Slater Pump Station. It is just about at capacity now. It serves a very large portion of Huntington Beach. It is now discharging about 20 mgd peak flow which is what it was designed for. He added that the City of Huntington Beach has always kept the District informal on future plans and we know what is caning in the next few years. We feel that asmnents given to the City have been on target. Caments we make today won't be on line for 2-3 years. Are at a point where we have to put warning out. Can't accept any large develooments. Have to add to it or make a new pump station. Mst go ahead with Coast Trunk Sewer and add on to the pump station or stop future development. Director Kelly added that the Slater Pub Station is an integral part and must be addressed with regard to the entire potential of the Bolsa Chica land mass. #2(c) - Financial Report The Director of Finance reviewed the three major categories of the District's budget—Operating Fund, Expenditures 5 Revenue. See Exhibit "C" in attached Staff Report. He advised that for the joint treatment facilities and collection facilities we routinely carry forward reserves. The District's primary source of revenue is our historical share of the 14 property tax allocation. The tax exchange issue is of significant concern to the District. With regard to fund balance or deficit, in 1986-87 there is a positive balance but by 1990-91 the District moves into a negative deficit position for the next five years. The preliminary reason for this is that our costs for operating the joint treatment facilities have been going up about 15% and tax revenues have not gone up in corresponding amounts. District 11 has to undertake a program to receive some tax exchange or establish a supplemental user fee, such as Districts 1, 5, 6 and 13 have established already. With regard to the capital fund, District 11 has chosen to operate on a pay-as-you-go basis. We don't have any control over revenue sources such as construction grants. This is based on our estimate of what is going to happen in Sacramento and Washington re construction grants. Explained procedure re obtaining grant monies. Commuted that connection fees fluctuate depending on development. At the beginning of the year we project $925,000 in connection fees but now we estimate $430,000 based on our discussion with the City. (line #17 says $530,000 M. The City does project development to continue at a reasonably high level over the next five years. Kelly asked if the proposed redevelopment is reflected in the estimates through 1990-91? Bill Butler replied yes, he obtained information fran their Planning Department and Redevelopment Agency. -2- Bill further reported on revenue sources from industrial waste fees and from the Santa Ana Watershed Project Authority who has an agreement to purchase up to 30 mgd of rapacity in the treatment facilities from the Districts. District 14 has also purchased equity from the District. Line 23 represents monies from -..s reimbursement agreements. Will need to construction major facilities to support annexation we are talking about. We project income from advance funding will coincide with the cost of the annexation. Director Stanton asked re Exhibit "D", what are your confidence levels as to tow accurate your projections are? Bill replied 90-95% except for construction grants which is maybe 50%. Director Kelly questioned line 19, why so mach up and down in that income? Bill advised that it has to do with When SAWPA actually purchases capacity from the District. District 11's share of the purchase is 2 mgd in 1987-88 and in 1989-90 will purchase 5 mgd. Be bond funding, by the end of the five-year period, will have retired all outstanding bonds (1951 & 1958). In summary, Bill stated that the District's current fond balance if $8.9 mullion but over the next 10 years the trend is downward. As major facilities are constructed at the treatment plants and collection facilities built, the Board will need to address supplemental user fees as well as increases to their connection fees and other revenue sources. Director Kelly added that these will have to be formulated within the next two years. Bill indicated that it is the District's practice to Come to the Directors with What we believe are the most optimistic projections on expenditures and the most conservation on revenues so, hopefully, projections are pretty close to worst case. Also, we can't always move forward as agressively as we might like with construction plans. Kelly asked if District 11's fund balances were the most outstandingly vulnerable in the entire system? Bill replied no, don't think District 11 is terribly vulnerable. Of the nine Districts, some Districts do have funds for their requirements for the next 5-10 years but others who have already implemented a supplemental use fee are in worse condition, and on a routine basis they have to address fee increases. District ll has managed to continue on a pay-as-you-go basis even after Prop. 13 when their major source of income was cut. Kelly then asked, when and if Bolsa Chica is annexed, will that be a negative or positive impact? Bill advised that staff wants to create a situation in which we have sufficient funds on the capital side to be able to finance the facilities to support the annexation in advance of the annexation. Don't want to have a negative impact on our financial condition. Director Mays asked about the operation and maintenance costs and wondered if they would be part of the annexation agreement. Bill replied the O & M costs are a broader issue and would not focus on any particular annexation to pay then. Director Stanton questioned line 49 re reserves and carry-over. The same figures did not carry over each year. Also sane columns didn't add uD across. �.d Bill Butler indicated that this is in error and would be corrected. -3- Bill Holman of the Huntington Beach Company asked if there had been any discussion regarding changing the District 11 connection fees on a District-wide basis whether or not the annexation moved forward? Tom Dawes stated that there were two areas he thought Mr. Holman was talking about. one area in District 3 is largely undeveloped. Sane of the area is served by the Slater Pimp Station and the other by gravity trunks. The second area is in District 11 but it served by District 3 facilities, of great concern to the Districts is the portion which is served by Slater Pump Station which pays connection fees of $250 per unit to District 3. District 11's fee is $1250. We are evaluating recommendations and will bring then to the Directors at a later date. Have several options—detach territory and annex to District 11 or sell capacity, etc. Stanton strongly stated that of those alternatives, why don't you pick the easiest one? To sell capacity sounds absurd. Detachment sounds much easier. Tbm Dawes agreed and said he planned to discuss this with District 3 at a meeting in May. Kelly asked is this to do with the Holm Chica area? He was answered, no, just has to do with the Slater Pinup Station. A large part of the area is owned by the Huntington Beach Company. Kelly asked why there was such a disparity between the connection fees of the two Districts. Tom advised that the connection fees are different in all nine Districts based on the individual needs and requirements. Each individual Board of Directors decides. District 3 will be considering increasing this too. Bill Holman then asked if other areas within District 11 not tributary to District No. 3 would be paying additional connection fees? Tom replied yes, the staff's recommendation would deal with the entire area. Tan added that District 11 has expended $11 million to date to build the Coast Trunk Sewer. Carl Neuhausene from Signal Iaudmark commented regarding the actual agreement that had been tendered by Signal Bolsa and said he would like to explain the relationship between the District No. 11 and special districts. He also indicated that he had brought consultants with him to speak to the Board-Gary Woods from IWA Engineering and Russ Behrens, legal counsel for Signal Holes. Director Stanton asked if our staff and attorney had look over the agreement yet? Tan Woodruff replied yes but it is unacceptable in its present form. Stanton then stated that he was not particularly open to this discussion before the District's attorney had brought the agreement to the Directors' attention. Chairman Kelly added that because of the complexity of the document, he felt that the Directors mast wait until the staff had a fairly fianite descriptive analysis to present to the Board. Can't really discuss a document that they don't even have in front of then at this time. Said it would be relatively wasteful to take the time. Stanton stated that when staff brings agreement to Board, Signal Holm could speak then. Signal Holm said they would hold their comments until that time then. With regard to special districts, this matter is pending before the legislature. At this point the measure hasn't been enacted and it is premature to have the Sanitation Districts discuss it. The General Manager said that concluded the staff reports. No questions. `.s -4- Chairman Kelly summarized a few observations he had made. At the present time based on the request received by the District, the Hoard of Directors has the following options: (SEE ALSO attached Memo of GC) (1) Approve request and adopt resolution initiating annexation procedures a.i (2) Deny request on the basis that it is not in the best interests of the District. (3) Take no formal action, but refer the natter to staff for further study and report back to the Board at a later date. He added that he would like to have sore research on what the potential requirements may be for the oil industry regarding disposal of whatever is generated where sewage may coma into the question. The Hoard must consider revisions re taxes and fees and maintenance of wetlands in perpetuity. Kelly added that he understood that developer will provide capital financing. operation and maintenance financing relates to an unusual situation re HH 6 payback and other agencies re wetlands (??) Will take quite a bit of review. Easements from private property owners could be related directly or indirectly to deferred annexation situation. If that is deferred, easement problem may be a problem. Director Mays then moved: That the matter of annexation of the Bolas Chica area be referred to staff to meet with the City and representatives of Signla Holm and other property owners affected and get back with District 11 at a later date. Also requested that staff take recommendations and report back to Board in detail on some of the issues expressed here tonight such as specific plan of service; how much the service will cost; and where the money will be coming from. Would like to see an estimate of what tax revenues would be caning in. Also an estimate of the service area which affects how we would be able to balance this out without affecting the rest of District 11. ??? b+otion seconded by Stanton and carried. Kelly requested that in deference to the developer, he would like to ask staff informally to review this matter as rapidly as possible and establish the term of "later date". Proposed that the this be brought back to the next District 11 meeting which is the May Joint Board meeting on May 13, 1987. � -5- MONTY SANITATION DISTRICT NO. 11 OF ORANGE COUNTY, CALIFORNIA MINVffi OF ADJOURNED RBX AR MEETING April 15, 1987 - 6:00 p.m. 10844 Ellis Avenue Fountain Valley, California Pursuant to adjournment of the regular meeting of April 8, 1987, the Board of Directors of County Sanitation District No. 11 of Orange County, California, met in an adjourned regular meeting at the above hour and date in the District's Administrative Office. The Chairman called the meeting to order at 6:05 p.m. The roll was called and the Secretary reported a quorum present. DIRMIMS PRESENT: Jack Kelly, Chairman, Tom Mays, Roger R. Stanton Dmxi rc RS ABSENT: None STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager, Rita J. Brawn, Secretary, 'ltqmas M. Dawes, William H. Butler, Gary Streed, Hilary Baker, OTHERS PRESENT: Thomas L. Woodruff, General Counsel, Don R. Griffin, Joint Chairman, Milo Keith, Bill Hartge, Victor Leipzig, Paul Cook, Richard Barnard, Bill Holman, Grace Winrwull , Carl Neuhausen, Jerry R. Wood, Susan Hori, Russel Behrens + + + + + + + + + + + + + + + + + + Review of Master Plan of Trunk The Director of Engineering reviewed the Sewers to serve the District and current District's Master Plan of long-term financial projections re Sewerage Facilities adopted in 1982. , capital and operating requirements County Sanitation District No. 11 is split into two separate drainage areas. The southerly portion drains through the existing reaches of the Coast Trunk Sewer directly to Treatment Plant No. 2 in Huntington Beach. The northwesterly portion, bounded by Goldenvsst on the east side and the San Diego Freeway on the north, including the Huntington Harbor area, drains to the Slater Avenue Pump Station between Goldenwest and Gothard, which lifts water over the Huntington Beach Mesa easterly to the Knott Interceptor and the Interplant Interceptor, owned jointly with other Districts, and then to Treatment Plant No. 2. Since District U's formation a Coast Trunk Sewer system extending northwesterly from Treatment Plant No. 2 has been envisioned to serve the Huntington Beach area. Early studies were based on the assumption that District No. 11 and the City of Huntington Beach boundaries would be coterminous. However, the City first developed in a northeasterly direction and that portion of the City is now in District No. 3. In the early 1960's the boundaries were extended westerly to y, include the Huntington Harbor area. -1- District 11 04/15/87 Master Plans have been the basis for orderly development of the District's sewerage system since 1947. The current Consolidated Master Plan of Trunk Sewers for Districts 2, 3 and it was prepared in 1982. For the last 10 years, the Coast Trunk Sever has dominated planning and construction activities in District No. 11. In 1979 the first leg of the Coast Trunk Sewer was awarded, extending from Treatment Plant No. 2 in Huntington Beach northwesterly to Iake Street at walnut Avenue. Completion of this project allowed the Hamilton Avenue Pump Station, located at Newland and Hamilton, to be abandoned and also relieved the Newland-Delaware Trunk Sewer and Atlanta Interceptor Sewer. In 1983 the Coast Trunk Sewer was extended to its present terminus, the west side of Goldenwest Street at Orange Avenue, providing relief for the Ocean Avenue Trunk Sewer. The 1982 Master Plan calls for the extension of the Coast Trunk Sewer to approximately Slater Avenue at Edwards Street. This would provide relief to the existing Slater Avenue Pump Station. Wben the Coast Trunk Sewer is eventually extended in Slater Avenue, to just easterly of Goldenwest Street, the Slater Avenue Pump Station is proposed to be abandoned. Upon completion of the Coast Trunk Sewer system, 'District No. •ll could then sell its capacities in the Knott Interceptor and Interplant line (in Brookhurst Street between Ellis Avenue and Treatment Plant No. 2) back to District No. 3. Planned future extensions to relieve other existing District No. 11 facilities include the Edwards Trunk Sewer, extending to McFadden Avenue from Slater, and relief lines in Heil, Edinger and McFadden Avenues. Mr. Dawes advised that the Slater Avenue Pump Station currently discharges at a peak rate of 20 million gallons a day, the approximate design flaw. Currently, all five pumps are required to handle the flows. The fifth pump, which would normally be a standby pump, now runs about five percent of the time. He expressed the staff's concern relative to the reliability of this essential service facility with the continuing and increasing demands being placed on the Slater Avenue Pump Station. If two pugs were out of service, the station would be seriously overloaded. The Districts' Maintenance Division is currently providing extra monitoring of this station to ensure continual operation. The Director of Engineering then reviewed proposed upcoming projects in connection with Coast Trunk Sewer collection system, and the estimated costs for construction of several relief lines needed, as well as a new pump station required to lift sewage into the Coast Trunk Sewer from the lower elevations in the northwest portion of District No. U. The total cost of the facilities needed which would allow abandonment of the Slate: Pum¢) Station is approximately $19,300,000. This is in addition to the $11,000,000 spent to date for the first two reaches of the Coast Trunk Sewer. He also noted that completion of the Coast Trunk Sewer thus far has enabled relief of the Ocean Avenue Trunk Sewer. A consultant has been engaged to study the Ocean Avenue Trunk Sewer and recommend which portions of the sewer should be rehabilitated and turned over to the City of Huntington Balch for use as a local sewer and which should be abandoned. It is estimated that about $300,000 will be needed to rehabilitate the Line. -2- District ll 04/15/87 The Hoard briefly discussed the possibility of adjusting the boundaries of Districts 3 and 11 in order to eliminate the need for the Basic Accommodation Agreement between said Districts. It provides for District No. 11 to serve an area in District No. 3 generally bonded by Garfield Avenue on the south, Beach Boulevard on the east and Central Park on the north; a second area, bounded by the Talbert Channel on the south and west, the Santa Ana River on the east, and Hamilton Avenue on the north, is within District No. 11 but is served largely by District 3. Staff reported that a study of these areas will be undertake., in the near future to determine if boundary adjustments are appropriate. The Director of Finance then addressed the Board and reviewed long-term financial projections relative to the District's capital and operating requirements. He pointed out that the primary ware of revenue has been the District's share Of the property tax allocation. District 11's long-range financial plan for funding its master planned sewerage facilities provides that the Coast Trunk Sewer system shall be financed by the developers to be repaid from future connection fees under terms and conditions established in a Master Plan Reimbursement Agreement. This policy was reaffirmed in June 1986 when the Board of Directors elected to continue their policy of Fay-as-you-go capital financing rather than encumbering a long-term debt by issuance of certificates of participation. Mr. Butler commented on the schedule of collection system projects proposed over the next ten years. He also reviewed in detail various cash.flow projections to outline the impacts on the District's long-range financial position. He noted that based on the estimates at this time the District could experience both capital and operating shortfalls and move into a deficit position as soon as 1989. The major reason for this is the increased costs to operate the joint treatment works without a corresponding increase in tax revenues. It was pointed out that it will be necessary for the District to consider adjusting current fee schedules and implement additional revenue sources, such as supplemental user fees similar to those previously adopted by Districts 1, 5, 6 and 13, in order to maintain the District's financial integrity. Following a general discussion and clarification of the cash flow projections, the Director of Finance advised the Hoard members that he would provide then with revised copies reflecting corrections to the statements. Directing staff to study request Mr. Dawes reported on the request for for annexation of Bolas Chico annexation of 1,520 acres of territory area further (Annexation No. 19 - in the Bolas Chica area received from Signal Bolsa Annexation) and Signal Bolas Corporation, the principal report back at a future meeting landowner. The Bolas Chica area is presently outside the boundary of District No. 11 but is included within its sphere of influence and is totally surrounded by the City of Huntington Beach. The District No. 11 Master Plan and the Coast Trunk Sewer system were designed to provide sewerage service to the Bolsa Chios area, based on the assumption that it would eventually annex to the District. Several issues were addressed in connection with the annexation request, including the steps required to comply with the California Environmental Quality Act relative to preparation of an Environmental Impact Report; funding—both capital financing and operations and maintenance financing; determination of necessary easements in order to construct the sewerage facilities needed to serve ..O -3- District ll 04/15/87 this territory; consent to the annexation by the other property owners; advance funding by developer and construction scheduling; and the execution of an agreement with the major landowner setting forth the terms and conditions of the annexation, with regard to who will provide the local sewer system it was pointed out that the local sewering agency for territory now within the boundaries of District No. 11 is the City of Huntington Beach, but that a determination was yet to be made because the landowners had sponsored a bill in the State Legislature providng for the formation of the Bolsa-Bay Harbor and Annexation District which, among other things, would be anpowered to provide sewage collection and treatment services. The Directors entered into a lengthy discussion relative to the issues involved in connection with the proposed annexation. It was pointed out that resolution of the issues previously discussed and the terms and conditions of an annexation agreement with Signal Bolsa Corporation had not yet been worked out. The Chair recognized Mr. Carl Neuhausen, representing Signal landmark, who stated that he would like to review his ompany's proposed annexation agreement. The General Counsel reported that Signal tadmxrk had presented a draft agreement but that it was unacceptable in its present form. It was the consensus of the Board menbers that discussion of the proposed agreement should be held in abeyance until the District's General Counsel and staff had an opportunity to review the terns and conditions with Signal Landmark and present an acceptable agreement to the Bawd menbers for review and consideration. The Chairman then observed that at the present time, based on the status of the request received by the District, the Board of Directors have essentially the following options: - Approve the annexation request and adopt a resolution after public hearing initiating the annexation procedures and authorizing the filing of an application, in the name of the District, to IAFC for its conduct of hearings. - To deny the annexation request. This would be done based on findings by the Board that it is not in the best interests of the District at this time. - Take no formal action, but refer the matter to the General Counsel and staff for further study and report back to the Board at a later date. It was then moved, seconded and duly carried: That the request for annexation of 1,520 acres of territory in the Hoke Cnica area (proposed Annexation No. 19 - Signal Bolas Annexation to Canty Sanitation District No. 11) be referred back to the General Counsel and staff for further study and discussions with representatives of the City of Huntington Beach, Signal Bolsa Corporation and other property owners to address the issues that need to be resolved and to attempt to work out terms and conditions of an annexation agreement and report back to the Board. The Chairman requested the General Counsel and staff to prepare a time schedule for the annexation proceedings for consideration by the Board at a future meeting. -4- District 11 04/15/87 Adiournnent Moved, seconded and duly carried: `..1 That this meeting of the Board of Directors if County Sanitation District No. 11 be adjourned. The Chairman than declared the meeting so adjourned at 7:22 p.m., April 15, 1987. Secretary, Board of i County Sanitation District No. 11 of orange County, California .d -5- STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954 .2 , I hereby certify that the Agenda for the Adjourned Regular Board Meeting of District No. held on , 1987 was duly posted for public inspection at the main lobby of the District's offices on C1 , 1987 . IN WITNESS WHEREOF, I have hereunto set my hand this q 4& day of 1987. 1987. Rita J. Brown, Secretary of the Board of Directors of County Sanitation District No. " of Orange County, California