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HomeMy WebLinkAbout1987-04-28 District 5 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA J • P.O.BOX 8127,FOUNTAIN VALLEY,CALIFORNIA 92728-8127 10844 ELLIS.FOUNTAIN VALLEY.CALIFORNIA 92708-7018 (714(962-2411 April 22, 1987 NOTICE OF ADJOURNED REGULAR MEETING DISTRICT NO. 5 TUESDAY, APRIL 28, 1987 - 4:30 P.M. NEWPORT BEACH CITY HALL - COUNCIL CONFERENCE ROOM 3300 Newport Boulevard Newport Beach, California Pursuant to adjournment of the regular meeting of April 8, 1987, the Board of Directors of County Sanitation District No. 5 will meet in an adjourned regular meeting at the above hour and date to review the status of the District' s Master Plan of trunk sewers and rehabilitation projects, and to consider revisions to the District' s long-range financial program. secretary BOARDS OF DIRECTORS County Sanitation Districts Post Office Box 8127 of Orange County, California 10844 Ellis Avenue Fountain Valley, Calif., 92708 TelephoMa: DISTRICT No. 6 A g540-290 a22 1rea Cod. 14 7I _ _ AGENDA ADJOURNED REGULAR MEETING TUESDAY, APRIL 28, 1987 - 7 :30 P .M. COSTA MESA CITY HALL - COUNCIL CHAMBERS (1) Roll call (2) Verbal status report on the District' s sewer rehabilitation program and Master Plan of facilities to serve the District. (3) Consideration of items re long-range financial program: (a) Staff report on supplemental user fee program and preliminary cash flow projections . (b) Discussion (c) Consideration of actions relative to Ordinance No. 611, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 609 Pertaining to Sanitary Sewer Service Charges: (Copy enclosed with agenda material) (1) Report of General Counsel re proposed ordinance. (2) Consideration of motion to read Ordinance No. 611, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 609 Pertaining to Sanitary Sewer Service Charges, by title only, and waive reading of said entire ordinance (must be adopted by unanimous vote of Directors present) . ( 3 ) Consideration of motion to introduce Ordinance No. 611, An Ordinance of the Board of Directors of County Sanitation District No. 6 of Orange County, California, Amending Ordinance No. 609 Pertaining to Sanitary Sewer Service Charges, and pass to second reading on May 13 , 1987. (4) Other business and communications, if any (5 ) Consideration of motion to adjourn t MANAGER'S AGENDA REPORT County Sanitation Districts Post Office B. 8127 of Orange County, California 10844 Ellis Avenue Fountain Volley, Calif., 92708 Tele*F : Am Code 714 540-2910 ,.I DISTRICT NO. s 962-24111 MNAU'ER'S REPOfY7' 7V DISTRICT NO. 5 DIRMTORS MEETING DATE: APRIL 28, 1987 Item No. 2: Status Re rt on District's Sewer Rehabilitation Program and Master Plan of Facflit es to Serve the District Rehabilitation of the Balboa Trunk Sewer System The District has completed an engineering investigation of the Balboa Trunk Sewer System, built in 1943, extending from the Lido Pump Station at Short Street and Newport Boulevard to the A Street Pump Station at Balboa Boulevard. The system includes approximately 12,700 feet of 15-inch to 24-inch vitrified clay pipe (VCP) and about 40 manholes. The entire line was inspected by video-tape. The Directors will recall that a significant portion of the wastewater collected and transported from the Balboa Peninsula is seawater which infiltrates into both City and District sewers. One of the objectives of the investigation was to determine the condition of the line so that corrective measures could be remanded to insure the structural integrity of the line as well as to reduce seawater infiltration. The inspection shows that nearly all of the infiltration into the District's line is at the joints rather than from failure of the pipe between the joints. Clay pipe joints installed forty years ago do not include the leak-proof techniques incorporated in today's compression seals. Small sections of the pipe were also observed to be cracked and these can be easily repaired. The consultant that conducted the study, Robert Bein, William Frost and Associates believes that the majority of the leaks can be repaired by chemical grouting. It is estimated that the grouting will cost about $110,000. However, the manholes are in worse condition, and reconstruction is recommended. The manhole reconstruction would include about 10 feet of new pipe on each side and at each side entry where the pipe is generally in poor condition. Staff estimates that the manhole reconstruction will oast about $390,000. Total project cost for rehabilitation of the Balboa Peninsula Trunk is now estimated at $500500. Staff is proceeding with solicitation of engineering proposals for preparation of plans and specifications for this project. Rehabilitation of the Pacific Coast Highway Force Main System The Directors will recall that for several years we have been conducting a major rehabilitation program designed to upgrade the District's backbone dual force main system in Pacific Coast Highway which has suffered several breaks in the past. Currently, the District is reconstructing the reach between Rocky Point Pump Station and a crossover .,.� located westerly of the Arches (Newport Boulevard). In addition, repair of the force main system from Lido Pump Station at Short Street to Pacific Coast Highway is included [ w 4/28/87 in the contract. When this project is ompleted, the District will have completed a rehabilitation of one of the twin barrels extending from the treatment plant in �..e Huntington Beach to the Upper Newport Back Bay. This will greatly increase the reliability of the force main system. Staff is reommending that the next project include rehabilitation of the second force main beginning at the crossover westerly of the Arches and extending to the Upper Newport Back Bay. It is estimated that this work will cost $2,350,000. Over a portion of the force main, between Orange Street and Old Newport Boulevard, the City of Newport Beach has under design a street improvement project for Pacific Coast Highway. The project is being administered by the City and funded by CALTRANS. The City has retained Robert Bein, William Frost and Associates to design the project. District staff has held an informal discussion with the City as to the advisability of including the replacement of the sewer pipe within that reach so that in the future, newly improved street improvements will not be disrupted. The City has indicated a willingness to do so particularly if the District can stay within their schedule. In addition, the District has contacted CAL.TRANS to see if permits could be issued on a fast-track to accamgdate this work; they too, indicate that they could acmnmdate the project. Accordingly, staff is reommending that the Selection Committee be authorized to negotiate with the City's designer, Robert Bein, William Frost and Associates, to prepare plans and specifications, in two phases, for the reconstruction of the second force main in Pacific Coast Highway. The first phase will be incorporated within the limits of the City's contract; the second phase under separate District contract at a later date could include reconstruction from Orange Avenue easterly to the Upper Newport Back Bay. Down-Coast Area The Irvine Company and other interested parties have contacted staff regarding sewage service for the dawn-coast area. Staff will brief the Directors and provide an update on the latest development plans and the District's master plan of facilities for serving the area at the Board Meeting. Item No. 3: Update on the District's Long-range Financial Program Background In 1981, the Board adopted a supplemental user fee program to make up the shortfall of ad valorem tax revenues and provide needed additional financing for operations and major rehabilitation work on the sewer system. When the program was originally presented to the public and adopted by the Board, it was anticipated that it would be necessary to increase the fees by approximately 77% beginning with the second year to finance the rehabilitation cork on the trunk sewer system. The District has been able to delay any increase in the supplemental user fees originally adopted in 1981 as well as its connection fees due to a significant decline in inflation rates, receipt of favorable bids on various District and joint works construction and rehabilitation projects, and delays in various major plant projects, all of which have reduced District expenditures and cash flow requirements well below budgeted levels. -2- 4/28/87 In addition, on the revenue side of the budget, the turnaround in econamic conditions and the resultant new construction and resale activity over the past few years have resulted in a significant increase in the assessed valuation of properties which has generated additional ad valorem tax revenues for the District. Further, the formation of District 14 resulted in the District receiving approximately $2,000,000 from the new district's purchase of capacity in the joint treatment and disposal facilities. The positive financial impacts of District 14's formation on District 5 were also reinforced by the Joint District's concurrent shift to a 100% flow-based method of allocating ownership and each district's share of joint treatment works construction costs which further reduced District 5's share of the joint works construction costs. Schedule A (attached) presents the District's projected financial condition over the next ten years based on the current fee schedules. This preliminary cash flow projection indicates that the revenues generated by the District's current supplemental user fee schedule in combination with the District's higher ad valorem tax revenues will be sufficient to fund 100% of the District's operating expenses for the next ten years. Schedule B (attached) presents the District's schedule of trunk sewer projects for the next seven years. The cash flow projections also indicate that the District's projected revenues from connection fees, Federal and State grants, sale of capacity rights to the Santa Ana Watershed Project Authority (SAWPA) , interest and miscellaneous inccme, income resulting from the formation of District 14 in January, 1986, and contributions from developers for planned development for the down-mast area of the District will not provide sufficient capital funds to finance the projects defined on Schedule B over the next ten years due to increased joint treatment facility construction requirements, but the District remains financially healthy on an overall basis. Supplemental User Fees The following fee schedule has been in effect since 1981: Single Unit Parcels Connected Meter Size Annual Fee 1" or less $ 26.40 A" 52.50 2" 105.00 3" 210.00 4" 420.00 6" 840.00 8" 1,680.00 If 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. Multi-Unit Parcels Per Unit $15.85 -3- 1 � 4/28/87 During the past year the staff and General Counsel met with the California State Water Resources Control Board's Revenue Program Specialist to review the status of the Districts' Revenue Program, the long-range financial plan adopted by the Joint Boards in April, 1979 to amply with federal and state construction grant program regulations. The State Board representative has indicated that the water-meter-size fee basis used by District No. 5 for supplemental user fees is not acceptable to the State Board. The state prefers a fee basis similar to that in effect in District No. 6 which establishes flat fees for single and multi-family residences and fees based upon square footage of improvements for commercial, industrial, governmental and other facilities. Therefore, staff is recamiending that the Board consider changing the existing water- meter-size-based fee structure to a flat fee and square footage-based fee similar to the fee structure adopted by District No. 6 in 1983. Using the current District No. 5 base- line, the following table outlines the proposed fee structure for 1987-88 for each user class: 1987-88 Class of User Basis of Charge Annual Rate Single-Family Charge per Dwelling $26.40 Dwellings/Condominiums Unit multi-Family Charge per Dwelling 15.85 Dwellings/Apartments/ Unit Mobile Homes Commercial/ Charge per low 18.90 Industrial/Other Sq. Ft. of Building (government buildings, utilities, non-profit organizations, etc.) Implementation of the proposed supplemental user fee modification will generate approxi- mately $46,000 in additional revenue each year. This additional income is reflected in - Line 3, Fees, on Schedule A. In the event the Board wishes to consider the change from a water-meter-size to a flat/square-footage-based user fee schedule, Ordinance No. 516 has been drafted which includes the reammended change to a flat/square-footage-based supplemental user fee based on the reammennded fee schedule presented earlier in the report. Staff will review the status of the District's Master Plan, attached schedules, the proposed supplemental user fee modification and the proposed Ordinance in greater detail with the Board at the meeting. \/ -4- 4/28/87 Connection Fees The costs for planning, design and construction of master-planned collection, treatment and disposal facilities to accommodate increased flows are continuing to increase. As pointed out above, there is a projected capital revenue shortfall. Therefore, staff is recommending that the Board consider raising the District's existing one-time connection fee as presented in the following table: Existing Fees Single/Multi-Family Comnercial/Industrial,/ zone Dwelling Units Governmental/Other 1 $250 per dwelling $130 per 1,000 square feet of building 2 $850 per dwelling $440 per 1,000 square feet of building 3 $1,250 per dwelling $2,000 per 1,000 square feet of building Reomuended Fees 1 $500 per dwelling $260 per 1,000 square feet of building 2 $1,100 per dwelling $570 per 1,000 square feet of building 3 $1,500 per dwelling $2,400 per 1,000 square feet of building In the event the Board wants to consider the above recommended charges, staff has drafted Ordinance No. 517 which incorporates the recommended connection fee changes. -5- COUNTY SANITAIIN DISTRICT NO. 5 SCHEDULE A $IAI[NEXT Of PAODCTED CASH FLUID 4/23/8] FISCAL YEARS I' AT THRMH 1995-96 1991-921 LINE 1986-87 LIB1-88 19BB S9 1989 90 1990-91 S-Year Total 19%-96 109eae total .... ------- ------- ------- ------- ------- ...--------- ----------- -- ---------- OPERAIING FWD -------------- I Reserves I Carry-Over irch Last Year 2.093.000 2,813,000 3,813,N0 4.935,000 6,2k,OW 2.094.000 I,)N,NO 2,013,000 REVENUE 2 she'.01 It TV.All at,.. 1.920,000 2.248.OW 2.632,N0 3.081,FRO 3.607,NO 13,1e1,N0 29,666,aW g151,W0 S fees 108,000 192,OW 832,000 811,W0 919,W0 1,125,0011 5,434,000 9,559,W0 1 Interest 1 NiseYllaneovs IWN. I15,W0 236,oW $10,000 S%,OW 196,ON 1,613,OW 4.245,000 51868,000 5 Other Revenue 0 0 ........... ........... ........... ........... ........... ........... ...... .... ........... 6 TOTAL REVENUE 2,03,N0 3,216,0W 3,111,000 6,351,0O0 5,022,000 19.226,000 39,335,000 58,%I,WO 1 TOTAL AVAILABLE FUNDING 1,896,000 6.119,000 1,581,N0 9.286.00 11,258.000 21,319,000 11,085,oN 60,651,N0 ----------- ---- ----------- ----------- ----------- ----------- EXPENDITURES 0 Share of Joint Perks N 1 0 1,555,W0 1,133,OW 1,993,000 21292,000 2,636,000 10,209,000 2OL,ULOW W,611,000 9 Collection Syste.A I 0 and Other Doer. 49e,W0 SI3,OW 659,000 IY,WO 812,000 3,36o,000 LICLON 101161,W0 10 Other EoWn hulas 0 0 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- II TOTAL EXPENDITURES 2,053,OW 2,3414,00 2,652,000 3,050,W0 S,UVLM 13,%9,000 21,539,W0 41,IW,NO ........... ........... ........... ........... ........... ........... ........... ......... . 12 A....... 1 GrrY-Mer I.*.or Year 21843.000 3,I13,000 1,935,W0 6,236,000 I,1so,000 I'me O 191516,01s) 19,566,000 13 Net 9ear'6 or, Period FhaMa9 Requirnenle 11021,W0 11153.00) 1,126,000 1,525,W0 1,1%,000 1,1H,W0 2,131,OW 2,1SI,(H0 ........... ........... ........... ........... ........... ........... ........... ........... 11 fund lalan¢or (Deficit) I1e16.000 3,660,040 3,6N,oN 11111.000 5.996,000 5.996.W0 16,115,W0 16,115,W0 CAPIIAI fUND(S) IS Reserves 1 Carry-over fro. List Year 11,296,0W 11,639,OW 9,265,W0 5,1541 (2,253,00) 11,296,01, (2,511,000) 11,2%,OW ----------- ----------- ---I------- ----------- ----------- ------------ ----------- ........... REVENUE 16 Lonsl rv[lion Drake 126.00 371.00 82,N0 191,W0 491,00 1,573.000 576,000 2.149.00 II fees: OOnneclion 343,000 756.000 1,191,00) 1,291.000 1,291.00 S,17S,ON 6,455,000 11.630,00 IB Other 5.00 6,000 6,N0 6,00 LEND 30,ON 40,00 10,00 19 $ale of Capacity A19hts Tom 208.000 12.00 12.000 593,OW 813,0N 126,000 1,169,000 20 Interest 1 NSscellanequs IW9A 228,N0 212,000 512,0e) 103,W0 0 2,085.000 0 2,085,OW 21 Equity Sale to District ❑ I,OW,WO I,WO,NO 1,000,000 22 floe b...d Equity Adlul Mrt 2,398,000 2,398,W0 21598.000 23 Other Inco.e 150,000 2,050,040 300,0N 1,100,000 3,9aLm 350,OW 1,2W,ohn 21 TOTAL REVENUE 1,618,0N 2.239,00 1,156,01110 2,206,000 3,I65,W0 11,041,001, 1121/.OW 25,251,N0 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 25 TOTAL AVAILABLE FROM 15.911,00) 13.I18.000 13.441.000 1,561,0i0 1,532,140 ; 26,303,000 5,610,001) 36,541.400 ........... ........... ........... ........... ........... . . .... ........ . ..---- EXPENOITYRES 26 SMr.of Joint North Rgt¢nt Plant 2.533.000 2.918.00 1,125,040 1,120.00 1.962.00 T6,618,00) 21165.00 19,083,00) 21 District Collection SYste. 1.675.00 1,501,ON 2,115,000 1,115,000 1,125,N0 11,151,000 1,635,N0 16,389,W0 ie R U,bU,5e.aAt A9ree.ent P....gtX 61,000 111,000 883,0N 122,0N 722.000 2,SOS,00 2,505,0W 29 Flo based Equity Adjustment 0 0 30 Other Expenditures 0 a 11 TOTAL EXPENDITURES 1,215,0N 1,593,000 8.203,00 11611.00 1,109,W0 30,871,000 1,I0,WO 37.911.00 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 33 Reserves I Larry-aver to Nest Year 11,639,00 9.285,00 S.1 SB,OW 17.253.001 (2,511,00) I 12,511,0001 ILUO,W01 11.130,No1 _.._..... .._._...... ............ ......___ .....__... ....... SCHEDULE A Page 2 4/23/87 995-92/ LINE - ----- 1...... 1988-89 198--W 19W--- --year --ql ------- ---Year---- Iota- .... "-.--. _•__ -_.._ ._._._ ------- - ----------_ _.-_..... -_-.....--.. BOND FOUNDER) ------------ 33 Reserves 6 Carry-Nor free list Year 2S,000 28.M 31,W0 28,W0 25.m 25,000 0 15.000 ........... ....... ..... ........... ........ i ----------- ----------- ----------- REVENUE 34 W LCVY 24,0W 23.W0 22.OW 21.WO W,OW 90.W0 35 lnleresl 1 Ni¢0e11aneoue Deepen 2,OW 2,W0 2,DW 2,OW 1,000 9.000 0 9.AN 36 Otter Income 0 32 TOTAL REVENUE 26,000 25,W0 24,00 23,W0 I.WO 99,000 0 99,000 ------- ----------- ----------- ----------- ----------- ----------- ..... --- ----- ----- a TOTAL AVAILABLE FUNDING 51,OW 53,W0 5S,OW SLOW 26,000 124,000 0 124.000 EIPENOITURES ------------ 39 Bond Pri.ml A Interest 23,010 22,000 21,OW 26,000 26,000 124,OW 124,W0 e0 Otter Expenditures ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- al TOTAL ENPIADITURES 23,000 22,00 27,000 26,000 26,00 124,00 0 IL4,000 .......... ........... ........... ----------- ----------- ----------- ----------. ----------- 42 Reserves a Garry-Over to Next Year 211,000 31,W0 28,OW 25,OW 0 0 0 0 43 Next Year's Dry Period funding Requirements M,OW 31,6W 20.000 25,W0 0 i 0 0 0 _......... ........... ........... ........... ........... , ---------- ----------- ----------- Ca fund Balance or (Deficit) 0 0 0 0 0 0 0 0 ............ ............ ............ ............ ............ ........... ........... ...... SUMMARY (AlmW for Inter-fund Iranslersl 45 Reserves 1 Carry Over from Last year 13,e14,000 14,510.00 13,129,00 10,121,000 6,000,000 ' 13,616,000 5,1131000 13.414,000 16 TOTAL REVENUE 6,ell,OW 5,540.000 1,954,000 6,580,000 8,80B,RAN 36,329.000 42,582,W0 83,911,000 ----------- ----------- ----------- ----------- ........... , ----------- ._... .... ........... 42 TOTAL AVAILABLE DRYING 19,661,W0 20.050.00 21,013,000 16,701.00 12,e16,000 49,213.00 52.755.00 91,325,W0 a8 TOTAL ❑PENDINRES 6,351.000 6,921,W0 10,962,000 12,693,000 1,643,W0 14,SIO,W0 34,639,000 19,209,W0 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------- Reserves A Carry Over to Next Year 13,510,00 13,129,01) 10,121,00 e,001,00 5,113,OW 5,173,OW 181116,000 18,116.00 50 Next Year's dry Period funding Requirements 1,055,N0 I,Im.m I,SSa,WO 1159.000 1.15a,0011 1,154,400 2,131,W0 2,131,W0 ........... ........... ........... ---- , ----------. ----------- ----------- 51 FUND BALANCE OR (DEFICIT) 12,655,000 11,945,004 8,161,OW 2,459,000 3,419,W0 3,419,OW 15.185,000 15,315,0W "I1) SAA i TA'm DISTRICT NO.S SCHEDULE B � •� 5(AIWIE Tf DISIRIa COIIECIION SYSTEM PA0I(O3 4/21/87 i PAnICT TOTAL C.I.P. 19B1.86 1908.89 1989.94 19n-41 1991-97 1992-IS 1993-91 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ----------- ----------- Aad10 LKLId Weevily 11 50,000 50,000 toast Iron, fora Aunt. I. Biller Point Nep Station to Newport Blvd. 5-IM-3 till' L223.000 940,000 2SLOOO 2. Newport Blvd. to Back Say 5-29 (t) tall 2,220.000 I2.000 206.000 1.600.000 11000.00 3. $1na Ally Rlyer to Biller Point Puro Station (3) Ire l' 2.300,000 S00,000 1.00.000 1.000.000 a. Holly Point to Newport Blvd. (Moth side) 13) (at- I,S10,000 310.000 1.200,000 Role . lino Tara Min and PCN Port! MIT. ILide Force Ran to Yalu B 15-26 (1) It) 1.187.000 9B1.000 200,000 .1 St.. lath St., aM Lsde Puep Station leproyue.to (2) la) S53.000 43.000 260.000 50.000 ROMpallale Balboa Penlaula bunk, Liao Pulp to -A" Street ❑I let MINOR 1501000 2501000 100.000 Bey Bridge PUSP Station [.APen./INpf. IS) (1) 600,000 50,000 500.000 50,000 Bitter Point Pulp Station Upgrade ill HI' 62.000 62.000 Small Daue Trunk Sewer (3) la) 1.700,0" 1.000,000 100.000 AMt, Pmnl Puep Salton Upgrade (3) aP 66.000 66.00D Alsee)WII.II Projects (1) 350.000 50,000 $0,000 $0.000 50.000 50,000 50.000 50.000 ........... ........... ........... ........... ........... ........... ........... ........... ........... .Wt0al ACT Fund 12,121,000 1,9B2,OW 1,S29.000 2,100.000 2.650,000 1.100MO 11050.000 360.000 1.29.000 . . . . . .. . . . .. . . . .. ..... ........... Blade Drive bunt Seue (3) (b) 2,140,000 100,000 1,800.n0 200.000 taco Shoes Poop Station and alension It Crt, SoMr to State Park (31 (1) 300,000 150.00 150.000 E.tenaon at toast Trans, Corona Del Aar Pgu Sta. to Crystal Cove hop Ble. Icl 1.100,000 104.000 1.00.000 C rys tat Cove Puep stet ion (31 10 400.000 100.000 EY1e06101 It Spite Coast Trunk Iue Crystal Love Pilot Sta. to spite Caau Dew. ICI 500.00 500.000 Auctanews Protests tat 125.00 25.000 25.000 25.00 ri,WO 25.000 25.00 25.00 ........... ........... ... ....... ........... ........... ........... ........... ........... ........... 5o0-atal FA fund 1,5)5.0W O 135.On 225,00 I.925.000 325.000 1.125.On 525.On 25,00 ----------- --------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ,PANT TOTAL In,69,,000 1.482.00 1.504.000 2.675,000 4.415.000 I.I25.000 2.475,000 885.000 L:'S,OQO ........... ........... ........... ........... .......... ........... ........... ........... ........... III Fully funded 1. has Ur-Phnned taallties Presently under COAStfaCtar To) Partially funded 2. Neear'P...led fulllllei pesently under I..lgo I. Mgt rural! T. Meal-panned tacllpme snadu ten to, 4tarr :e'19nlans uommN r ; RE ; AGENDA ITEM N0. 3(c) ORDINANCE NO. 516 AN ORDINANCE OF THE BOARD OF DIRECTORS `..i OF COUNTY SANITATION DISTRICT NO. 5 OF ORANGE COUNTY, CALIFURNIA, ESTABLISHING SANITARY SEWER SERVICE CHARGES, AND REPEALING ORDINANCES NOS. 511, 513 AND 515 The Board of Directors of County Sanitation District No. 5 of Orange County, California, does hereby ORDAIN: 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 works and sewage collection system. Revenues derived under the provisions of this Ordinance shall be used for the acquisition, construction, reconstruction, maintenance and operation of the sewage collection facilities and wastewater treatment and disposal facilities of the District, together with costs of administration and provisions for necessary reserves. Section 2: Annual Sanitary Sewer Service Charge. Commencing July 1, 1987, 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. 514 of the District establishing regulations for use of District's sewage facilities, including provisions for payment of charges or fees related thereto. Section 4: Exceptions. The provisions of this Ordinance shall apply to all properties in the District, and no exception shall be provided for properties -1- e otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax exempt organizations, except as expressly provided in Section 5 hereof. Section 5: Exemptions and Appeals. In recognition that certain legal parcels of real property exist within the District which are not connected to the District system and that other properties acquire considerably greater potable water than is ultimately discharged to the District's system, it is the intent of the District that said parcels be exempt totally or in part from the payment of charges as prescribed herein. Any property owner may appeal the assessment of the charges and submit a claim for rebate to the District on the forms prescribed and provided by the District, within one hundred twenty (120) days after the annual 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 amount that would normally be expected to be discharged by the class of property in question. �.r -2- Section 6: Annual Charge Based on 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 in any fiscal year. 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. 514 in an amount equal to the annual sanitary sewer service charge established by Section 2 of this Ordinance in the.same manner as credit is allowed for ad valorem taxes pursuant to Section 302.6(B), 303.6(B) and 304.5(B) (4) of Ordinance No. 514. 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. Section 10: Effective Date. This Ordinance shall become effective July 1, 1987. Section ll. Ordinance Nos. 511, 513 and 515 are hereby repealed of the -3- 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. 5 of Orange County, California, at a regular meeting held Chairman of the Board of Directors, County Sanitation District No. 5 of Orange County, California ATTEST: Secretary, Board of Directors of County Sanitation District No. 5 of Orange County, California -4- TABLE A Class of Basis of 1987-88 Minimum Annual User Charge Annual Fate Charge Per Unit Single-Family Charge per $26.40 $26.40 Dwellings/ duelling unit Condomniums Ybilti-Family Charge per 15.85 15.85 Dwellings/Mobile dwelling unit Homes/Apartments Crnmercial/ Charge per 1,000 18.90 18.90 Industrial/Other square feet of (goverment building buildings, utilities, non-profit organizations, etc.) RE ; AGENDA ITEM NO. 3(d) a ORDINANCE NO. 517 `..i AN ORDINANCE OF THE HOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 5 OF ORANGE COUNTY, CALIFORNIA, AMENDING SECTION 702 OF ORDINANCE NO. 514 PERTAINING TO CONNECTION CHARGES FUR USE OF DISTRICT SRWRRAGE FACIISTIES, AND REPEALING ORDINANCE NO. 512 The Hoard of Directors of County Sanitation District No. 5 of Orange County, California, does hereby ORDAIN: Section 1: Section 702 of Ordinance No. 514 is hereby amended to read: "B. District Connection Charges. Before any connection permit shall be issued, the applicant shall gay to the District, or its agent, the charges specified herein: 1. For each new dwelling building constructed, the connection charges shall be: Zane 1 - $ 500.00 per dwelling unit. Zone 2 - $1,100.00 per dwelling unit. Zone 3 - $1,500.00 per dwelling unit. 2. For all other new construction, including, but not limited to, commercial and industrial buildings, hotels and motels and public buildings, the connection charges shall be: Zone 1 - $ 260.00 per 1,000 square feet of floor area contained within such construction, provided that the minimum connection charge for such new construction shall be $260.00. Zone 2 - $ 570.00 per 1,000 square feet of floor area contained within such construction, provided that the minimum connection charge for such new construction shall be $570.00. Zone 3 - $2,400.00 per 1,000 square feet of floor area contained within such construction, provided that the minimum connection chare for such new construction shall be $2,400.00. -1- r 3. For new construction replacing former buildings, the connection charge shall be calculated on the same basis as provided in paragraphs (1) and (2) above. If such replacement construction is commenced within two years after demolition or destruction of the formes building, a credit against such charge shall be allowed, calculated on the basis of the current connection charge applicable for the new construction of the building demolished or destroyed. In no case shall such credit exceed the connection charge. 4. In the case of structures where further new construction or alteration is made to increase the occupancy of dwelling buildings or the area of buildings to be used for other than dwelling buildings, the connection charge shall be calculated on the same basis as provided in paragraphs (1) and (2) above for each dwelling unit added or created or each 1,000 square feet of additional floor area contained within such new construction, provided that new construction shall contain additional plumbing fixture units. 5. Payment of connection charges shall be required at the time of issuance of the building permit for all construction within the District, excepting in the case of a building legally exempt from the requirement of obtaining a building permit in the City of Newport Beach. The payment of the sewer connection charge for such exempt buildings will be required at the time of, or prior to, the issuance of a plumbing connection permit for any construction within the District." Section 2: Fees established by Section 702 shall be effective July 1, 1987. Section 3: Ordinance No. 512 is hereby repealed on the effective date hereof, as it pertains to Ordinance No. 508 which was previously repealed by Ordinance No. 514. Section 4: The Secretary of the Board shall certify to the adoption of this Ordinance and cause same to be published in a newspaper of general circulation in the District as required by law. -2- PASSED AND ADOPTED by the Hoard of Directors of County Sanitation District No. 5 of Orange County, California, at a regular meeting held Chairman of the Baird of Directors County Sanitation District No. 5 of Orange County, California ATTEST: Secretary of the Board of Directors County Sanitation District No. 5 of Orange County, California -3- ADDITIONAL USER FEE PROVISIONS IN CURRERr DISTRICT 6 ORDINANCE Condominiums: Condominiums are considered single-family dwellings. However, in recognition of the limited potential use of smell, converter] dwelling units, the owner of a single unit may apply for a reduction of the annual rate from $26.40 to $15.85, provided the unit has less than 11 plumbing fixture units (determined as follows): Fixture Units Assigned by Uniform Building Cade Single bath with tub, water 7 Fixture Units closet and wash basin Kitchen with sink and/or 2 Fixture Units dishwasher Laundry facilities 2 Fixture Units 11 Fixture Units Cannercial/Industrial: To recognize buildings in this classification where the use of the sewer system may not be directly related to the size of the building such as in a warehousing type of use, any owner of a single building may apply for a reduction of the calculated fee to a minimum annual fee of $15.85, provided said building contains less than 11 plumbing fixture units (as determined above) . • �v -r4. 0 BOARDS OF DIRECTORS County Sanitation Districts Post OHioe 6oz 8127 of Orange County, California 10844 Ellis Avenue Fountain Valley, Calif., 92708 Telephones: Am Code 714 DISTRICT No. 5 9540-2910 622411 AGENDA ADJOURNED REGULAR MEETING TUESDAY, APRIL 28, 1987 - 4 : 30 P .M. NEWPORT BEACH CITY HALL - COUNCIL CONFERENCE ROOM ( 1) Roll call (2) (a) Verbal status report on the District' s sewer rehabilitation program and Master Plan of facilities to serve the District. (b) Consideration of motion authorizing the Selection d Committee to negotiate with Robert Bein, William Frost & Associates for design of rehabilitation of second barrel of the Coast Highway Force Main from the Arches to Upper Newport Bay. (3) Consideration of items re long-range financial program: (a) Staff report on supplemental user fee program and preliminary cash flow projections. (b) Discussion (c) Consideration of actions relative to Ordinance No. 516 , An Ordinance of the Board of Directors of County Sanitation District No. 5 of Orange County, California, Establishing Sanitary Sewer Service Charges , and Repealing Ordinances Nos . 511 , 513 and 515 : (Copy enclosed with agenda material) (1) Report of General Counsel re proposed ordinance. ( 2) Consideration of motion to read Ordinance No. 516 , An Ordinance of the Board of Directors of County Sanitation District No. 5 of Orange County, California, Establishing Sanitary Sewer Service Charges , and Repealing Ordinances Nos . 511, 513 and 515 , by title only, and waive reading of said entire ordinance (must be adopted by unanimous vote of Directors present) . ( ITEM 3 CONTINUED ON PAGE 2) (3) (c) (3) Consideration of motion to introduce Ordinance No. 516 , An Ordinance of the Board of Directors of County Sanitation District No. 5 of Orange County, fir' California, Establishing Sanitary Sewer Service Charges , and Repealing Ordinances Nos, 511, 513 and 515 , and pass to second reading on May 13 , 1987 . (d) Consideration of actions relative to Ordinance No. 517 , An Ordinance of the Board of Directors of County Sanitation District No. 5 of Orange County, California, Amending Section 702 of Ordinance No. 514 Pertaining to Connection Charges for Use of District Sewerage Facilities , and Repealing Ordinance No. 512: (Copy enclosed with agenda material) (1) Report of General Counsel re proposed ordinance. (2) Consideration of motion to read Ordinance No. 517, An Ordinance of the Board of Directors of County Sanitation District No. 5 of Orange County, California, Amending Section 702 of Ordinance No. 514 Pertaining to Connection Charges for Use of District Sewerage Facilities , and Repealing Ordinance No. 512 , by title only, and waive reading of said entire ordinance (must be adopted by unanimous vote of Directors present) . (3) Consideration of motion to introduce Ordinance No. 517, An Ordinance of the Board of Directors of County Sanitation District No. 5 of Orange County, California, Amending Section 702 of Ordinance No. 514 Pertaining to Connection Charges for Use of District Sewerage Facilities, and Repealing Ordinance No. 512 , and pass to second reading on May 13 , 1987 . ( 4) Other business and communications , if any (5) Consideration of motion to adjourn -&",O 5 -2- F v 1 G � ■ V.2 FINANCING s The proposed trunk sewers force mains and pump i stations that are included in the South Coast portion of the District 5 Master Plan will, to the extent possible, be financed by connection charges. }. i The total projected cost of these facilities is ■ estimated as follows: Y w Facility A. Reconstruction of Cameo Shores $ 350,000 Pump Station extension of the existing 15 inch City line to the westerly boundary of the Y proposed State Park and instal- P M lation of a force main to " 1 Pacific Coast Highway B. Extension of Bayside Drive Trunk 1, 500,000 gravity line from the abandoned Bayside Drive Pump Station to the Corona del Mar Pump Station C. Construction of the Crystal Cove 300,000 Pump Station D. Construction of 7,550 lineal feet of 565,000 ° 24 inch gravity line and 2,800 lineal feet of force main between Crystal Cove Pumping Station and the Corona del Mar Pump Station E. Construction of an 18 inch gravity 150,000 line from the westerly limit of The Irvine Company' s proposed 375 acre e tract to the proposed Crystal Cove Pumping Station 1 Total Cost, including Engineering and Contingencies $2,865,000 r -26- 1 4 k i � rThe sewage connection fees currently charged for „r new construction in Zone 1 of District No. 5 is $250 per dwelling unit and $130 per 1,000 square feet for commercial buildings. The above estimate of ultimate dwelling units, i.e. , 3,148 is, of course, subject to revision due to possible changes in current development philosophy or annexations to the District. Regardless, discussions i with the Sanitation Districts staff indicate the derived a ' dwelling unit totals should be substantially reduced for calculating sewer connection fees to provide adequate funding and to allow for planning revisions. It should be noted that property within the limits of the Coastal drainage area that will, in all probabil- ity, be annexed to District 5 at a future date are not included in this analysis. Assuming a 25% reduction in the total above, the dwelling units count would be reduced to 2,361. As- suming a 30% building area factor for the 96 acres of commercial area results in 652 Equivalent Dwelling Units. Therefore, the total of Equivalent Dwelling Units for the proposed Residential and Commercial Development is 3,013. Dividing this total into the above Total Cost of proposed Sewage Facilities results in an addi- tional connection charge requirement of $951 per Dwelling Unit. In summary, the connection charges required to finance construction of the sewage facilities servicing the South Coast Development are as follows: Residential - $250 + $951 - $1201/D.U. . . .say $1,200 Commercial - $130 + $951 x 1923 = $1959/1000 S.F. r. 1000 , , ,say $2,600 . . -27- Based on the above and considering contingencies, engineering, etc. , the range of the projected connection charges should be: Residential $1,200 to $1,500 per Unit � l Commercial $2, 000 to $2, 500 per 1000 S.F. of Building Area - . 1 V.3 COST ESTIMATES rk" Table III summarizes the estimated construction costs and scheduling for the Rehabilitation and new District projects. Table IV summarizes the estimated installation ��' o� costs and preliminary scheduling for the projects M-. necessitated by the development of the South Coast. A� , w e�1v �`J l J 1�L 4 w� J lYl S� -25- '`i N coaHsRA S1P<R-7s M•44. 412 (57A 2+q(o.Go) Ad1b TZAc-JS-U5 7VW#IkKV M• 4 . ip ll ( Smo, O + $1.20) VLq�, 45;T . Ins ;:'C• Squlo otetT P�KS couNrf:p. �Izon OK 110. 4 1 + So.?a I q" / rwiw. I4-q Ivi . o I + 68.So .7 csa./ wuV-. 617o 103.7 1 + 62.410 I a /utlui °1e-18 137.0 I + roq.6o t Csstt-/Haiw IO2O Q N4N 1¢0 .13 1 + 55. 5 3 &AA- / ue;uJ 1100 Ib0 . 3 1 + 3G. 3 I 6-7ca./ L4U'u. I 1 5 S I fo8.'1 1 4 27. 9 t Gan, / w,;., Il $5 177, 0 1+ Id) . Go 1230 195.0 1+ 11 . 6o 3 t-.,.. /tu.,. 1395 M.wt 220.5 0 +7S.la 5 E,at./ ttu,µ. — Ct.tr,� e MEETING DATE April 28, 1987 TIME 4:30 PM DISTRICTS 5 (Newport Beach City Hall) DISTRICT 1 JOINT BOARDS (EDGAR)........HOESTEREY..._ (PICKLER)..........SAY......... (CRANK)........HANSON...... _ (FRIED)........ SIGONGER...._ (YOUNG)........GRISET...... _ _ (NORBY)............CATLIN...... _ (ROTH).........STANTON..... (RISHER)...........CLIFT....... (PLUMMER)..........COX......... DISTRICT 2 (PERRY)............CULVER...... (KENNEDY).... (NORBY)........CATLIN...... (MC CUNE1..........GR I FFIN..... _ (WEDEL)........MAHONEY....._ _ _ (YOUNG)............GRISET...... (PICKLER)......SAY......... (CRANK)............HANSON...... (FRIED)........BIGONGER.... (COX)..............HART........ _ (YOUNG)........GRISET....... (EDGAR)............HOESTEREY..._ (NEL SON).......LEYTON...... (CORONADO).........KANEL....... (SCOTT)........NEAL........ (WINCHELL).........KELLY....... (DOWNEY).......NEWTON...... _ _ (EDGAR)............KENNEDY..... (CUL VER).......PERRY......._ _ _ (NELSON)...........LEYTON...... (FAS BENDER)....SILZEL...... (WEDEL)............MAHONEY..... _ (PEREZ)........SMITH....... (PLUMNER)..........MAURER...... (ROTH).........STANTON....._ _ _ (GREEN. P).........MAYS........ _ (AGRAN)............MILLER. S..._ DISTRICT 3 (BIGONGER).........MURPHY...... (SCOTT)............NEAL........ (HERMAN).......POLIS ...... (SUTTON)...........NELSON...... (WEISHAUPT)....SAPIEN...... _ _ (DOWNEY)...........NEWTON...... (PICKLER)......BAY......... (CULVER)...........PERRY....... (NORBY)........CATLIN......_ __ _ _ (HERMAN)...........POLIS....... (RISHER).......CLIFT....... _ _ (WEISHAUPT)........SAPIEN...... (PERRY)........CULVER...... (WILES)............SIEFEN...... _ (MC CUNE)......GRIFFIN..... _ _ (FASBENDER)........SILZEL...... (YOUNG)........GRISET...... _ _ (PEREZ)............SMITH....... (CDR ONADO).....HANEL....... _ _ (ROTH).............STANTON..... (WINCHELL).....KELLY......._ _ _ (NELSON)...........SUTTON...... _ (WEDEL)........MAHONEY..... _ _ (MILLER. 0)........SWAN........ (SCOTT)........NEAL........ _ _ (SELVAGGI).........SYLVIA...... (SUTTON).......NELSON...... _ _ (GREEN.H/JOHNSON)..WAHNER......_ _ (WILES)........SIEFEN......_ (BOTH).........STANTON....._ (SELVAGGI).....S YLVIA......_ _�.._ __...._.. _._.....,.._. $TREE: DISTRICT 5 SYLVESTERCLARKE......� DAWES....... (COX)..........HART........JL _ _ ANDERSO ....JL ((ROTH).........COX.......... BUTLER...... ROTH).........SAWINiBM.....JL_ _ BUTLER......JL __ —___.__._ :AOWN....... DISTRICT 6 BAKERKER....... KYLE........ ( ......WANNER......_ _ _ VONLANGEN (PLUMMER ......STARER......_ _ _ WINSON...... (ROTH).........STANTON....._ _ _ _ SiREED......_ CLAWSON..... DISTRICT 7 OOTEN....... LINDER......Z (KENNEDY)......EDGAR....... _ _ DEBLIEUX...._ (AGRAN)........MILLER. 5..._ _ _ TALEBI...... (PLUMMER)......Cox........._ _ _ ROLL........ (YOUNG)........GRISET...... _ _ 1(A& n, (PERE Z)........SMITH......._ _ _ (ROTH).........STANTON....._ _ (GREEN. H).....WAHNER......_ _ _ OTHERS: WOODRUFF...._ ATKINS...... DISTRICT 11 HOHENER..... HOWARD...... (WINCHELL).....KELLY....... _ _ HUNT........ (ROTH).........STANTON..... _ _ KEITH....... (GREEN. P).....MAYS........_ _ _ KNOPF....... LINDSTROM..._ DISTRICT 13 LYNCH....... YOUNG....... (NELSON)....... UTTON......_ _ _ ,�_• „ , (BIGONGER ....•MURPHY A ......_ (PICKLE.).. BY... .....SMITH ......_ ^ ,. (PERE))........SMITH....... _ Fr�uwAWWUVV. (ROTH).........STANTON..... _ DISTRICT 14 ���r (AGRAN)........MILLER. 5... (MILLER. D ....SWAN........ (EDGER)..... KEN ....SMITH. ...... _ (PETS))........SMITH....... (ROTH)..........STANTON....._ 04/09/87 COUNTY SANITATION DISTRICT NO. 5 OF ORANGE OOUNTY, CALIFORNIA EIIPA)TES OF ADJOURNED RB=M ME fING. April 28, 1987 - 4:30 p.m. Newport Reach City Nall 3300 Newport Boulevard Newport Beach, California Pursuant to adjournment of the regular meeting of April 8, 1987, the Board of Directors of County Sanitation District No. 5 of Orange County, California, met in an adjourned regular meeting at the above hour and date in the Newport Beach City Hall Council Conference Room. The Chairman called the meeting to order at 4:30 p.m. In the absence of the Secretary, Rita J. Brown, Chairman Hart appointed J. Wayne Sylvester Secretary pro tem. The roll was called and the Secretary pro tem reported a quorum present. DIRECTORS PRESENT: Evelyn Hart, Chairman, John C. Cox, Jr., Dan R. Roth DIRKS ABSEW: Note STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager, William H. Butler, Thomas M. Dawes, John Linder, Cesar Sandulescu 01HERS PRESENT: Don R. Griffin, Joint Chairmen, Ruthelyn Plummer, Ben Nolan, Joe Devlin, Bob Dixon, Mike Swan, Jim Ro x x x x x x x x x x x x x x x x x x Status Report on District's Sewer Rehabilitation Program and Master Plan of Facilities to Serve the District Rehabilitation of the Pacific Coast The staff reviewed the ongoing major Highway Force Main System rehabilitation program designed to upgrade the District's backbone dual force aein system in Pacific Coast Highway, jointly awned by Districts Non. 5 and 6, which has experienced several breaks in the past. Currently, the District is reconstructing the reach between Rocky Point Pump Station and a crossover located westerly of the Arches (Newport Boulevard). In addition, repair of the force mein system fran Lido Pump Station at Short Street to Pacific Coast Highway is included in the contract. Mien this project is finished, the District will have canpleted a rehabilitation of one of the twin barrels extending from the treatment plant in Hontington _ Beach to the Upper Newport Back Bay. This will greatly increase the reliability of the force mein system. -1- District 5 04/28/87 The next project will include rehabilitation of the second force main beginning at Orange Avenue westerly of the Arches and extending to the Upper Newport Back Bay. It is estimated that this work will cost $2,350,000. Over a portion of the force main, between Orange Street and Old Newport Boule,*rd, the City of Newport Beach has under design a street improvement project for Pacific Coast Highway. The project is being administered by the City and funded by CalTrans. The City has retained Robert Bein, William Frost and Associates to design the project. District staff has held an informal discussion with the City as to the advisability of including the replacement of the sewer pipe within that reach so that in the future, newly improved street improvements will not be disrupted. The City and CalTrans have indicated a willingness to do so, particularly if the District can stay within their schedule. Staff reccmended that the Selection Carmittee be authorized to negotiate with the City's designer, Robert Bein, William Frost and Associates, to prepare plans and specifications, in two phases, for the reconstruction of the second force main in Pacific Coast Highway. The first phase will be incorporated within the limits of the City's contract; the second phase under separate District contract at a later date would include reconstruction from Old Newport easterly to the Upper Newport Back Bay. Rehabilitation of the Balboa Trunk The Director of Engineering reported Sewer System that an engineering investigation of the Balboa Trunk Sewer System, built in 1943, extending from the Lido Pump Station at Short Street and Newport Boulevard to the A Street Pump Station at Balboa Boulevard, had been conrretel. The system includes approximately 12,700 feet of 15-inch to 24-inch vitrified clay pipe (VCP) and about 40 manholes. A significant portion of the wastewater collected and transported from the Balboa Peninsula is seawater which infiltrates into both City and District sewers. One of the objectives of the investigation was to determine the condition of the line so that corrective measures could be recommended to ensure the structural integrity of the line as well as to reduce seawater infiltration. The Director of Engineering narrated a video tape of the inside of the sewer taken during the engineering inspection that shoos that nearly all of the infiltration into the District's line is at the joints rather than from failure of the pipe between the joints. Clay pipe joints installed forty years ago did not include the leak-proof techniques incorporated in today's compression seals. Small sections of the pipe were also observed to be cracked but these can be easily repaired. The consultant that conducted the study, Robert Bein, William Frost and Associates, believes that the majority of the leaks can be repaired by chemical. grouting. It is estimated that the grouting will cost about $110,000. However, the manholes are in worse condition, and reconstruction is recarmended. The manhole reconstruction would include about 10 feet of new pipe on each side and at each side entry where the pipe is generally in poor condition. Staff estimates that the manhole reconstruction will cost about $390,000. Total project cost for rehabilitation of the Balboa Peninsula Trunk is estimate] at $500,000. Staff reported that it is proceeding with solicitation of engineering proposals for preparation of plans and specifications for this project. -2- District 5 04/28/87 Downcast Area The Director of Engineering reviewed the master planned facilities to serve the 3500 acre downcoast area presently within the boundaries of District No. 5 but not within the City of Newport Beach boundaries. The facilities include an extension of the Coast Highway Trunk System and the Bayside Drive Trunk Sewer, construction of the Crystal Cove Pump Station and other modifications to the existing Bay Bridge Pump Station at a total estimated cost of $6.6 million. Mr. Dawes pointed out that the District is still awaiting final development plans from The Irvine Company before the staff will be able to finalize the master plan sewerage system needs of District No. 5 for the downcoast area. Mr. Dawes also pointed out that the downcoast area is within the Irvine Ranch Water District and that the Water District had prepared an Irvine Coast Subarea Master Plan for providing the local sewer system but that a final determination on the local sever service was yet to be made. Authorizing the Selection Canmittee Moved, seconded and duly carried: to negotiate with Robert Bein, William Frost a Associates for That the Selection Committee be, and is design of Rehabilitation of Second hereby, authorized to negotiate with Barrel of the Coast Highway Force Robert Bein, William Frost s Associates Main from the Arches to Upper for design of Rehabilitation of Second Newport Bay Barrel of the Cast Highway Force Main from the Arches to Upper Newport Bay. Update on the District's Long-range The Director of Finance reported that in Financial Program 1981 the Board adopted a supplemental user fee program to make up the shortfall of ad valorem tax revenues and provide needed additional financing for operations and major rehabilitation work on the sever system. When the program was originally presented to the public and adopted by the Board, it was anticipated that it would be necessary to increase the fees by approximately 77% beginning with the second year to finance the rehabilitation work on the trunk sewer system. The District has been able to delay any increase in the supplemental user fees originally adopted in 1981 as well as its connection fees due to a significant decline in inflation rates, receipt of favorable bids on various District and joint works construction and rehabilitation projects, and delays in various major plant projects, all of which have reduced District expenditures and cash flow requirements well below budgeted levels. In addition, on the revenue side of the budget, the turnaround in economic conditions and the resultant new construction and resale activity over the past few years have resulted in a significant increase in the assessed valuation of properties which has generated additional ad valorem tax revenues for the District. Further, the formation of District 14 resulted in the District receiving approximately $2,000,000 from the new district's purchase of capacity in the joint treatment and disposal facilities. The positive financial impacts of District 14's formation on District 5 were also reinforced by the Joint District's concurrent shift to a 100% flow-based method of allocating ownership and each District's share of joint treatment works construction costs which further reduced District 5's share of the joint works construction costs. -3- District 5 04/28/87 Mr. Butler then reviewed the District's projected financial condition for the next ten years based on the current fee schedules. The preliminary cash flow projections indicate that the revenues generated by the District's current supplemental user fee schedule in canbination with the District's higher ad valorem tax revenues will bt sufficient to fund 100% of the District's operating expenses for the next ten years The cash flaw projections also indicate that the District's projected revenues from connection fees, Federal and State grants, inane resulting from the formation of District 14 in January, 1986, and contributions from developers for planned development for the down-coast area of the District and miscellaneous income, will not provide sufficient capital funds to finance the scheduled projects over the next ten years due to increased joint treatment facility construction requirements, but the District remains financially healthy on an overall basis. The following fee schedule has been in effect since 1981: Single Unit Parcels Connected Meter Size annual Fee 1" or less $ 26.40 1P 52.50 2" 105.00 3" 210.00 4" 420.00 6" 840.00 8" 1,680.00 If 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. Multi-Unit Parcels Per Unit $15.85 Mr. Butler reported that during the past year he and the General Counsel had met with the California State Water Resources Control Board's Revenue Program Specialist to review the status of the Districts' Revenue Program, the long-range financial plan adopted by the Joint Boards in April, 1979 to canply with federal and state construction grant program regulations. The State Board representative has indicated that the water-meter-based fee used by District No. 5 for supplemental user fees is not acceptable to the State Board. The State prefers a fee basis which establishes flat fees for single and multi-family residences and fees based upon square footage of imuprovements for canner cial, industrial, governmental and other facilities. Therefore, staff recommended that the Board consider changing the existing dater-meter-based fee structure to a flat fee and square footage-based fee similar to the fee structure adopted by District No. 6 in 1983, as follows: -4- �"' District 5 04/28/87 1987-88 Class of.User Basis of Charge Annual Rate Single-Family Charge per Dwelling $26.40 Dwellings/Condominiums Unit Multi-Family (Surge per Dwelling 15.85 Dwellings/Apartments/ Unit Mobile Homes Comercial/ Charge per 1,000 18.90 Industrial/Other Sq. Ft. of Building (government buildings, utilities, non-profit organizations, etc.) Implememtation of the proposed supplemental user fee modification will generate approximately $46,000 in additional revenue each year. The casts for planning, design and construction of master-planned collection, treatment and disposal facilities to acconnodate increased flows are continuing to increase. As pointed out above, there is a projected capital revenue shortfall. Therefore, staff recommended that the Board consider raising the District's existing one-time connection as follows: Existing Fees Single/Malti-Family Comercial/Industrial/ Zone Dwelling Units Governmental/Other 1 $250 per dwelling $130 per 1,000 square feet of building 2 $850 per dwelling $440 per 1,000 square feet of building 3 $1,250 per dwelling $2,000 per 1,000 square feet of building Recommended Fees 1 $500 per dwelling $260 per 1,000 square feet of building 2 $1,100 per dwelling $570 per 1,000 square feet of building 3 $1,500 per dwelling $2,400 per 1,000 square feet of )wilding `� -5- ' r District 5 04/28/87 First reading of proposed It was moved, seconded and duly Ordinance No. 516 carried: That Ordinance No. 516, An Ordinance of the Board of Directors of County Sanitation District No. 5 of Orange County, California, Establishing Sanitary Sever Service Charges, and Repealing Ordina�tces Nos. 511, 513 and 515, be read by title only; and, FURTHER MON=: That reading of said entire ordinance be, and is hereby, waived. Following the reading of Ordinance No. 516 by title only, it was then moved, seconded and duly carried: That Ordinance No. 516, An Ordinance of the Board of Directors of County Sanitation District No. 5 of Orange County, California, Establishing Sanitary Sewer Service Charges, and Repealing Ordinances Nos. 511, 513 and 515, be introduced and passed to the second reading on May 13, 1987, at 7:30 p.m., at the District's administrative office. First reading of proposed It was then moved, seconded and duly Ordinance No. 517 carried: That Ordinance No. 517, An Ordinance of the Board of Directors of County Sanitation District No. 5 of Orange County, California, Amending Section 702 of Ordinance No. 514 Pertaining to Connection Charges for Use of District Sewerage Facilities, and Repealing Ordinance No. 512, be read by title only; and, Fi7RTEIDi MM.- That reading of said entire ordinance be, and is hereby, waived. Following the reading of Ordinance No. 517 by title only, it was then moved, seconded and duly carried: That Ordinance No. 517, An Ordinance of the Board of Directors of County Sanitation District No. 5 of Orange County, California, Amending Ordinance No. 512 Pertaining to Cannectdon Charges for Use of District Sewerage Facilities, and Repealing Ordinance No. 512, be introduced and passed to the second reading on May 13, 1987, 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. 5 be adjourned. The Chairman then declared the meeting so adjourned at 5:50 p.m., April 28, 1987. S re ten, Board of Directors Sand ion District No. 5 of California -6- `.r/ 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. 5 held on a$ , 1987 was duly posted for public inspection at the main lobby of the District' s offices on as , 1987. IN WWIT_NE'SSn WHEREOF, I have hereunto set my hand this a&4 day of , 1987 . Rita Secretary of the Board of Directors of County Sanitation District No. S of Orange County, California