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HomeMy WebLinkAbout1987-11-24 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA P.O. BOX 8127,FOUNTAIN VALLEY,CALIFORNIA 92726.8127 10844 ELLIS,FOUNTAIN VALLEY,CALIFORNIA 92708-7019 (710)962-2411 November 19, 1987 NOTICE OF ADJOURNED REGULAR MEETING DISTRICT NO. 11 TUESDAY, NOVEMBER 24, 1987 - 5: 30 P.M. 10844 EMS Avenue Fountain Valley, California Pursuant to adjournment of the regular meeting of November 18, 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 consider further action relative to implementation of the District' s long-range financial program and adoption of sanitary sewer service charges. Secretary BOARDS OF DIRECTORS County Sanitation Districts post once Sm 8127 of Orange County, California 10844 Ellis Avenue Fountain Valley, Calif., 92708 Telephe - A. Code 714 DISTRICT No. 11 96z 2411 AGENDA ADJOURNED REGULAR MEETING TUESDAY, NOVEMBER 24, 1987 - 5:30 P.M. (1) Roll call (2) Public Comments: All persons wishing to address the Boards on specific agenda items or matters of general interest should do so at this time. As determined by the Chairman, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. (3) Staff report on implementation of long-range financial program (4) Consideration of actions relative to Ordinance No. 1108, An Ordinance of the Board of Directors of County Sanitation District No. 11 of Orange County, California, Establishing Sanitary Sewer Service Charges: See page -A- (a) Report of General Counsel re proposed Ordinance No. 1108 (b) Consideration of motion to read Ordinance No. 1108 , An Ordinance of the Board of Directors of County Sanitation District No. 11 of Orange County, California, Establishing Sanitary Sewer Service Charges, by title only, and waive reading of said entire ordinance (must be adopted by unanimous vote of Directors present) . (c) Consideration of motion to introduce Ordinance No. 1108 , An Ordinance of the Board of Directors of County Sanitation District No. 11 of Orange County, California, Establishing Sanitary Sewer Service Charges, and pass to second reading on December 9 , 1987. ( 5) Consideration of motion directing the staff to proceed with implementation of user fee program and authorizing the issuance of a purchase order to the Orange County Assessor in an amount not to exceed $75,000 for computer programming and EDP processing to provide data base information, mailing labels and parcel charge tapes relative to planning and implementation of user fees to be collected on the property tax bills in District No. 11. (6) Other business and communications , if any (7) Consideration of motion to adjourn ORDINANCE NO. 1108 AN ORDINANCE OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 11 OF ORX= COUNTY, CALIFORNIA, FSTABLISHnU SANITARY S&M SERVICE CHARGES The Board of Directors of County sanitation District No. 11 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, 1988, 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. 1106 of the District establishing regulations for use of District's sewage facilities, including provisions for payment of charges or fees related thereto. Section 4: EXceotions. The provisions of this Ordinance shall apply to all -1- "A-1" AGENDA ITEM NO. 4 "A-1" properties in the District, and no exception shall be provided for properties otherwise deemed exert from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax exert organizations, except as expressly provided in Section 5 hereof. Section 5: EKempt+ons 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 discharge] 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 the Finance Director of the Districts as 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 -2- ""A-2" AGENDA ITEM NO. 4 "A-2" 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. 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 nay 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. 1106 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, 303.6 and 304.5(B) (4) of Ordinance Ho. 1106. 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 -3- "A-3" AGENDA ITEM NO. 4 "A-3" 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, 1988. Section 11: The Secretary of the Hoard shall certify to the adoption of this ordinance and shall cause the sane to be published in a newspaper of general circulation in the District as required by law. PASSED AND ADOPTED by the Hoard of Directors of County Sanitation District No. 11 of Orange County, California, at a regular meeting held Chairman of the Board of Directors County Sanitation District No. 11 of Orange County, California ATTEST: Secretary of the Board of Directors County Sanitation District No. 11 of orange County, California -4- "A-4" AGENDA ITEM NO. 4 "A-4" TABLE A Class of Basis of 1987-88 Minimum Annual User Charge Annual Rate Charge Per Unit Single-Family Charge per $26.40 $26.40 Dwellings/ dwelling unit Condominiums Multi-Family Charge per 15.85 15.85 Dwellings/Mobile dwelling unit Homes/Apartments Commercial/ Charge per 1,000 18.90 18.90 Industrial/Other square feet of (government building buildings, utilities, non-profit Organizations, etc.) "A-5" AGENDA ITEM NO. 4 "A-5" MANAGER'S AGENDA REPORT County Sanitation Districts Post office Box 8127 of Orange County, California10844 Ellis Avenue Fountain Valley, Calif., 92708 Telephones: Arco Code 714 DISTRICT NO. 11 96=241 MANAGER'S REPORT TO DISTRICT NO. 11 DIRECTORS MEETING DATE: NOVEMBER 24, 1987 Item No. 3: Staff Report on Implementation of the District's Long-Range Financial Program The attached Staff Report summarizes the status and the proposed actions for implementation of the Districts' long-range financial program adopted by the Board of Directors at the August 20, 1987 adjourned meeting. Staff will review the attached report with the Directors at the meeting. v L - COUNTY SANITATION DISTRICTS AI ORANGE COUNTY, CALIFORNIA 1094 EWB AVENUE V.O.Bo%8121 11/17/87 FOUNTAIN VALLEY,CALIFDANIA 92729.9127 9141962?-11 STAFF REPORT ON IMPLEMENTATION OF LONG-RANGE FINANCIAL PROGRAM BACKGROUND For many years the Districts, as part of the annual budgetary process, have forecast revenues and expenditures on a five-year basis and last year commenced forecasting on a ten-year horizon. The purpose of this long-range financial planning is to assure adequate funding to carry out the Districts' wastewater management program for the benefit of the communities and the two million citizens which the Districts serve in metropolitan Orange County. A major benefit of the long-range cash flow projections is that they enable us to determine well in advance when revenue shortfalls will begin to occur so that the Board of Directors will have adequate time to consider alternative funding sources and take the necessary corrective action to ensure each District's financial integrity. For some time, our projections have indicated that funding shortfalls in District No. 11 would begin to occur as soon as 1989 and that the District would have to consider additional revenue sources to meet the District's long-term funding requirements for sewerage facilities improvements and expansion, and ongoing operations and maintenance costs. Property taxes have historically been the major source of local financing along with connection fees of the District's activities. However, the costs of providing service continue to rise beyond the ability of the property tax apportionments and the past connection fee schedules to keep pace with the stringent requirements of the federal and state regulatory agencies for advanced treatment and the need to provide additional facilities to meet the increasing demands on the sewerage system. Accordingly, on August 20th, the Board modified its financial plan and took the following actions directed at maintaining the District's long-range financial integrity: 1. Directed staff to draft an ordinance increasing connection fees from $1,250/dwelling unit and $250/1,000 sq. ft. to $1,500/dwelling unit and $300/1,000 sq. ft. The Board approved the increase in connection fees at the October, 1987 meeting, and the new fees will go into effect November 13, 1987. (Connection fees are charged to new development to pay for sewage facilities to serve said development). 2. Directed staff to proceed with planning for implementation of a supplemental user fee to be collected on the property tax bill beginning �.. in 1988-89. (User fees help pay the ongoing costs of operations, maintenance and facilities replacement). Page Two 11/17/87 PROPOSED USER FEE PROGRAM The supplemental user fee program is required to avoid a projected deficit beginning as soon as fiscal year 1988/89 in the District's operating fund. Schedule A, Statement of Projected Cash Flow, reflects this anticipated deficit on line 14, Fund Balance or (Deficit). The anticipated deficit would reach as much as $24.1 million by 1996-97 unless additional revenue is generated. Schedule A presents the District's projected long-range financial position under the following assumptions: (1) Supplemental user fees are not established; and (2) The Bolsa Chica area does not annex to District 11. To provide the necessary revenues for District operating costs (including capital replacement), the Board, on August 20th, directed staff to proceed with planning and implementation of the supplemental user fee program as set forth in Table 1. Schedule B reflects the updated timetable for the implementation plan approved by the Board. TABLE 1 Proposed Supplemental User Fee Program Annual Charge Effective Class of User Basis of Charge July, 1988 Sin le-Famil Annual Charge $26.40 e ngs ondominiums per Dwelling Unit Multi-Famil Annual Charge $15.85 we n s artments per Dwelling mobile Momes Unit Commercial/Industrial/ Annual Charge per $18.90 t er 1,000 Sq. Ft. of Building This program is identical to that in effect in Districts 1, 5 and 6. District No. 3 is proposing to implement the same program in 1989. District 6 initially adopted the same fee schedule, but has found it necessary to increase the rates 10% each of the past two years. District 13, which receives no ad valorem tax appropriation, has a charge of $70/year. Schedule C, Statement of Projected Cash Flow, identifies the cash position of District No. 11's operating fund if the above recommended supplemental user fee program is implemented based on the assumptions that: (1) Supplemental user fees are established; and (2) The Bolsa Chica area does not annex to District 11. Based on a July, 1988 implementation date, the District's operating fund would remain solvent through 1989-90 with the initial rates in place, although the contingency reserve would be reduced below an acceptable level . Page Three 11/17/87 The Board will need to periodically evaluate the fees because the cash flow projections for the 1990/91-1996/97 period indicate further shortfalls. Thus, once implemented, the user fee amounts should be evaluated annually to make sure that the program provides adequate revenues to meet the District's funding needs. Based on current estimates, the user fee may have to be increased to $45.00/single family residence by 1990-91. It should be noted, however, that District 11's financial position, in the final analysis, will be significantly affected by the amount of ad valorem tax revenue apportioned to the District from the proposed Bolsa Chica Annexation. The District needs to implement supplemental user fees to generate additional revenues for its operating fund whether or not the Bolsa Chica annexation goes forward. SUPPLEMENTAL USER FEE ORDINANCE In accordance with the implementation plan, the next step is the introduction of an Ordinance to adopt the supplemental user fees. Enclosed is a draft of Ordinance No. 1108, Establishing Sanitary Sewer Service Charges, that will be .considered by the Board for introduction and first reading at the November 24th meeting. The second reading and adoption is scheduled for the regular meeting on December 9, 1987. The effective date of the Ordinance would be July 1, 1988. PUBLIC HEARING ON PROPOSED COLLECTION OF USER FEE ON PROPERTY TAX BILLS We are also required by law to notify property owners in District No. 11 of our intention to use the joint consolidated property tax bill to collect the supplemental user fee. We will do this through a public notice that will be mailed in late December or early January notifying District No. 11 of a Public Hearing to be conducted on February 18, 1988 to discuss this proposed billing and collection method. Exhibit D is a copy of the proposed notice. DATA BASE AND EDP PROCESSING COSTS Implementation of the supplemental user fee requires development and maintenance of a data base of all the parcels within the District by property type as well as EDP processing of the fees for placement on the County of Orange property tax roll each year. The County Assessor's Office maintains a comprehensive data base of all parcels within the District. The other four Districts which have Implemented supplemental user fees set aside funds each year in their operating budgets to reimburse the County Assessor for the data base maintenance and EDP processing services provided to the Districts to enable them to bill their user fees via the tax roll . Initial development and testing of the data base, preparation of mailing labels for the public notices, and processing of the user fees for the 1988-89 tax roll is expected to cost between $70,000 and $75,000. Annual data base maintenance and EDP processing costs in future years are expected to range between $30,000 and $40,000. "r Staff recommends that the Board authorize issuance of a purchase order to the County Assessor for an amount not to exceed $75,000 to reimburse the Assessor's expenses for implementation of the District No. 11 supplemental user fee for 1988-89. Page Four 11/17/87 RECOMMENDED BOARD ACTIONS The staff recommends the following Board actions: 1. Introduce the supplemental user fee Ordinance No. 1108 for first reading at the November 24, 1987 Board meeting. 2. Direct staff to proceed with implementation of the supplemental user fee program in accordance with the revised implementation plan. 3. Authorize expenditures of up to $75,000 for the supplemental user fee program implementation and EDP processing for the 1988-89 supplemental user fee on the joint consolidated tax bill . COUNTY SANITATION DISTRICT NO. It Schedule A STATE0ENT OF PROJECTED CASH FLOW it/17/8 ( TISCAI YCARS 1917-88 THROUGH 1996-97 Page I 1992-93y LINE 1987-OB 1908-89 1999-90 1990-91 ["1-92 $-Year Total 1996.91 10-Year total LINE ....... ....... ....... ....... ....... . ............ ......... OPERATING FUND -------------- , I Rsservas 1 Carry-Over from Last Year 2,071,000 1,020,000 936,ODe (233,000) (1,617,000) 2,471,000 (3,417.000) 2,411,000 1 REVENUE 2 Share of 11 lax Allocation 2,091,000 2,356,000 2,656,000 2,994,000 3,375,000 13,472,000 24,511,000 37,9B3,000 2 3 fees 100,000 105,000 110.000 116,000 122,000 SSS,000 706,000 1,259,000 3 a Interest t Hiscellan..us ].Co., 152,000 98,000 25,000 0 0 275.000 0 275.000 t 5 Other Revenue 0 0 5 ........... ........... ........... ........... ........... I ........... .........-. ........... 6 TOTAL REVENUE 2,343,0" 2,559,000 2,791,D00 3.110,000 3.491.000 1 14,300.000 25.217,000 39,517,000 6 ........... ........... ........... ........... ........... . ........... ........... ........... 7 TOTAL AVAILABLE FUNDING 4,814,000 6,319,000 3,727,000 2,877,000 1,020,000 16,771,000 21,W0,000 41,918,00D 7 ........... ........... ........... ........... ........... ( ----------- ----------- ----------- EXPENDITURES 8 Shan of Joint Works N t 0 2,491,000 2,065,000 3129S,000 3,789,000 4,357,000 16,797,000 33,022,000 50,619,ODe B 9 Collection System H t 0 and Other Door. 503,000 518,000 665,000 165,ODe 860,000 3.391,000 6.826,000 10,217,000 9 10 Other Expenditures 0 0 10 ..."I..... ........... ........... ........... ........... I ----------- ----------- ----------- it T07AL EXPENDITURES 2.994.000 S,113,000 3,960,000 4,554,000 5,237,000 20,188,000 40,648.000 60,036,000 11 ........... ........... ........... ........... .......... ( ----------- ----------- ........... 12 Reserves t tarry-Over to Next Year I,BEO,ODe 936,000 (233,000) (1,677,A00) (3,417,000) (3,011,000) (16,841,MO (18,868,De0) 12 13 Next Year's Dry Period Funding Requirements I,491,000 1,722,000 1,980,000 2,277.000 2,619,000 2,619,000 5,273,De0 5,273,000 13 ----------- ----------- ----------- ----------- ----------- - ----------- ----------- ----------- IL Fund Balance 0r (Deficit) 323'"0 (786,000) (2,213,000) (3,954,000) (6,036,000) i (6,036.000) (24,121,000) (26,121,010) le CAPITAL FUNDS( 35 Reserves L Carry-not from Last Year 9,601,ODe 7.360.000 I,A01,000 (3,351,Add) (3,924,000) ( 9.601.000 (3,BBI,OW) 9101.00 IS ........... ........... .........I. ........... ........... , ------------ ----------- ----------- REVENUE 16 Construction Greats SI1,W0 113,000 618,000 619,B00 679.000 ( 2,661,000 113,000 2,777,000 16 17 Ens: Connection 600,000 720,000 720,000 720,000 720,000 ( 3,560,000 3,600,000 1,I60,W0 17 18 Other 30,000 32,0De 36,000 36,000 38.000 170,000 2E0,000 390,000 IB 19 Sale of Capacity Rights 3%,"0 57.000 927.000 B61,000 30,000 ( 2.194,000 136,000 2.320.000 19 20 Interest t Hisnllmeens Income 601,000 318,000 0 0 0 ( 919,on 0 919,000 20 21 Other 1..m0 0 0 21 ........... ........... ........... ........... ........... . ........... ........... ......I—- 22 TOTAL REVENUE 2,134,W0 1,240.000 2,359.000 2,298,ODe 1.466,000 9,497.000 4,069,000 13,566,000 22 ........... ........... ........... ........... ........... ........... ........... ........... 23 TOTAL AVAILABLE FUNDING 11,135,000 8,600,000 3,966,000 (1,059,ODe) (7,459,000) ( 19.090.000 Ise,Me 23,161,000 23 ........... ........... ........... ........... ........... ........... ........... ........... EXPENDITURES 24 Share of Joint Yorks Treatment Plant 1,071,000 6,470.000 5,64B4O00 2,690,000 1,348,000 ( 20.235.000 3,283,000 23,518,000 21 2S District collection System I"'Or 0 SIS,000 1.615.000 175.000 iS,OW ( 2,630,000 6,200,e00 8,830,0W 25 26 RBEmDursement Agreement Payments 0 0 26 27 Other Expenditures 114,000 114,000 116,000 27 ----------- ...-------- ----------- ----------- ----------- ----------- ----------- ----------- 28 70TAL EXPENDITURES 4,375,OW 6,193,000 7,323,000 2,865,000 1,423.000 22,979,000 9,483,000 42,462,000 28 ........... ........... ........... ........... ........... ........... ........... ........... 29 Reserves 6 Carry-over to Next Year 7,360.000 1,607,De0 (3,357,000) (3,924.000) (3,881,000( 1 (3,B01,000) (9,295,000) (9,295,000( 29 Schedule A COOTY SANITATION DISTRICT NO. 11 11/17,80, 3TAIENEXT OF PROJECTED CASH FLOW Page 2 FISCAL YEARS 1907-88 IXROPH 1996.91 19 -93) LINE 1901-00 1900-09 1------ ------- ---- -- ---- -- - --- --Year Total 6 l - 10- - Total -LINE --- BUD FUND($) 30 Reserves B Carry-Over From List Year 51,000 18,00 34,000 52,000 76,000 ' 50,000 91,000 SB,ON 30 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- REVENUE 31 Is, Levy $5,Oo ON /5,000 35,000 25,000 ! 210,000 25,01I0 235.000 31 32 Interest I NLseellaaeous Income I,DN 3.000 3,00 5,000 6,000 21,000 I,ON 25,00 32 33 Other Income 0 33 ........... ........... ........... ........... ........... ........... ........... ........... 31 TOTAL REVENUE 59,Oo 53,00 48,00 40.00 31,ON 231,000 29.00 260,000 31 ........... ........... ........... ........... ........... ........... .-----I---- --------. 35 TOTAL AVAILABLE FUNDING II7,060 101,0N 82,000 92,00 107,N0 289,000 1N,ON 318,000 35 ----------- ----------- ----------- ----------- ----------- - ----------- ----------- ----------- EXPENDITURES 36 Bond Principal B Interest 69,Oo 67,000 30.000 N'Nal 16.00 198,000 N'O0 287.000 36 37 Other Expenditures 31 38 TOTAL EXPENDITURES -.--69=N0- -'.-67,000- --- 30,0N- ----16,00- ..' 16_N0 ---198,000- ----87,000 287,000 38- --- 39 Reserves 6 Carry-bar to Pont Year 48,00 31,00 $2,000 76.000 91,011 i 91,N0 31,000 31100 39 40 Hart Year's may Part" Funding Panel reaeat, 18,00 34,000 52,000 76.00 11,000 91,000 31,000 31,000 10 11 Fund Balance or (DeJicitl .........0 .......... .........0 .........o .......... ---------o - --------- ..........0 11 ............ ............ ............ ............ ............ . ........... ........... ........... 3UXNARY (Adjusted For Inter-Fund Transfers) 12 Reserves 1 Carry-Aver From Last Year 12.130.000 9.228,000 2,577,000 (3,538,000) (5,525,000) 12,130,000 (7,201,000) 12,130,000 12 13 TOTAL REVENUE 4.536.000 3.852.000 5,190.000 5,118,N0 4.994.000 ) 24,029.000 29,315,000 53.343,"0 43 ........... .......I... ----------- ........... ........... ---I ---I --------. ------.-..- 11 TOTAL AVAILABLE FUNNXG 16,666,00 13,980.000 7,775,000 1,910,000 (531.000) ) 36,158,000 22,108,000 65,473,00 11 /5 TOTAL EXPENDITURES 7,438.000 10,503.00 11,313,000 7,435,00 1.676.00 13,36S,ON 0,220,000 93,585,000 15 ........... ........... ........... ........... ........... . ........... ........... ........... 16 Reserves B Carry-Over In Next Year 9,228.000 2.577,000 (3,511,000) (5,525,N0) (7,207,000) i (7,207,000) (28.112,00) (28,112,00) 16 47 Next Year's Dry Period Funding Rawireaents 1,515,DN 1,756,0110 2,032,000 2.353.000 2.710,000 2,710,000 5.304,000 5,304.00 41 ........... ........... ........... ........... ........... . ........... ........... ...I-----.. I8 FUND BALANCE N (DEFICIT) 7,693,ON 821,01N0 (5,570,000) (7,879.000) (9,117,000) (9,917,000) (33,/16,000) (33,416,00) 48 ( PROPOSED DISTRICT 11 USER FEE/CONNECTION FEE I14PLEME14TATIOII SCHEDULE Schedule B Page 1 11/10/87 JAN-JUL 87 AUG 87 SEP 87 OCT-NOV 87 DEC 87 J ourn eet ng to Review Modify Approve first Reading of Second Reading/ Second Reading an Review District's Long-range Financial Proposed Connection Adoption of Cannectfo Adopt Ordinance/Set Long-ra Fnancing Plan and Use' ' Fee Ordinance - 9 9 8 Fee Ordinance-]0 14 8 Fee Schedule - 12 9 8 011. T11187 ns9 Connection Fee Recamm endati ons - 8 20 87 Adjourned Meeting to o pprave Review Status of Bud ets - 7 8 87 District's Long-Range s Fnancial Program - g 11 29 87 c Introduce r nonce Establishing User Fees for 1988-89/ Approve Revised Implementation Schedule and Budget - 11/24/87 Adjourned Meeting ev ew 1 87-88 Budget Request Oata as D st Order Mailing Labe iv- Update Future ash mplement Board Future Cash Flow 11 Parcels by Prop- to Test Out Modified Flow Re of rements Direction Establishin H Requirements/Graf[ erty Ty De (SFR/MFR/ Mailing Label Program User Fees Revision to Long-Rang IND, etc.) and Pre- Deliver to County mp ement oar s Financial Plan - pare Revenue Esti- Assessor for Testing/ Di rectian Raising mates - 8 30 87 Production Runs - Connection Fee Levels f 9 30 87 10 19 87 Notify ounty ssess- or/Formally Request p ate ata on Support for Impl one" - MFR/Commercial/Indus- tation of District 11 1 trial/Government Supplemental User Fee Facilities in CSO /l1 8 TO 87 9 30/87 Pracess ng to Extract Data/Evaluate 1988-89 Fee Revenues 9 30 87 ( PROPOSED DISTRICT 11 USER FEE/CONNECTION FEE IMPLEMENTATION SCHEDULE Schedule 8 Page 2 11/10/87 JAN 88 FEB 88 MAR-APR 88 MAY-JUN 88 JUL-AUG 88 x Public Henri ng Conduct Public Hearin Date for Proposed an Proposed Billing Billing and Collectic and Collection Method Method/User Fee Repor User Fee Report - 1 13 88 Board Meetin 2/18/87 Adjourned Meetin A pprove Funds to corporate Modified Receive le User Fee Programs into Report Describing Assessor's New Property 8tobeputer-based Assess Lt System to Prepar A Roll - 1 13 88 Adopt esolution Approving Billing and Callection Method/Use Fee Report Adjourned Meetin rocess ng Prepare 1988- User Processing to Produce - ser ee ev ew utput rom j Printing to Generate Fee Report for Review for Placement on 1988-89 Property Tax B111 Taz Roll Processing/ j o Labels/Notices to all and Discussion with Count Assessor - 2 19 88-6 30 88 Research and Correct Property Owners re Board of 0lrectors Exceptions/Turn in a Proposed Sewer Use Fe Final Fee Package - p. Billing and Col lactic Conduct Public Work- I August 5-26 1988 w Method shop to Dissscu Proposed Sealer Use Fe Billing and Collectio Method 2/4/88: Proposed Workshop Dat o wate r op e User Ras to Coty Assessor - 2 19 88un COUNTY SANITATION DISTRICT NO. I: Schedule C , STATENENT Of PROJECTED CASH YEAH IT/17/� . FISCAL YEARS 1981-89 THROUGH 1996-97 Page i 1992-731 LINE 1997-08 TRAMP 1989-90 1990-91 1991-92 S-Year Total 1996-17 10-Yesr Total LINE .... ------- ------- ------- ------- ------- - ------------ ----------- ------------- ---- OPERATING FUND -------------- 1 Reserves 1 Cdrry-Over Free last Year 2,611,000 1.8n,OOU 2,131,000 2,259,000 2.150,000 2,471,000 1,740,000 2,411,000 1 ........... ........... ........... ........... ........... . ........... ........... ........... REVENUE 2 Share Of 1S tax Allocation 2.091,000 2,356.000 2.656,000 2,994.000 3,SIS.000 13,472,000 26,511,000 $7,583,000 2 3 Fees 100,000 1U5,000 110.000 116,000 122,000 553'"0 7a,000 1,259,000 3 6 Interest E Niscallanews Income 152,000 140,000 156,000 136,000 138,000 742,000 0 742,000 6 5 Other Revenue (Supplemental User Fees) 1,153,000 1,166,000 1,179,000 1,192,000 4.690,000 6.155.000 10,845,000 5 ........... ........... ........... ........... ........... . ........... .......... ........... 6 TOTAL REVENUE 2,343.000 3,754,000 4,088,000 4,145,000 4,827,000 15,451,000 31.312,0OU 50,829,000 6 ........... ........... ........... '---..----- -.......... ------..... ........... ........... 7 TOTAL AVAILABLE FUNDING 4,814.000 5,574,000 6,219,000 6,704,000 6,977,0114 21,928,000 33,112,000 53,300.000 7 ........... ........... ........... ........... ........... . ........... ........... ........... EXPENDITURES B Share of Joint Works H L O 2,691,00D 2,065.000 S,295,000 3,789,000 4,357,000 16,797.000 33,822,000 50,619,000 8 9 Collection System N 6 0 and Other Oper. 503,000 516,000 665,000 745,000 860,000 1,391,000 6,826,000 10,217,000 9 10 Other Expenditures G 0 10 ........... ........... ........... ........... ........... . ........... ---I ---- ----I --- 11 TOTAL EXPEN017UPTS 2,994,000 3,e43,000 3.960,000 4.554.000 S,237,000 20.188,000 40,648.000 60,036.000 11 ........... ........... ........... ........... .........1. , ----------- ----------- ........... 12 Reserves 6 Carry-Over to Next Year 1,820,0OU 2.ISI,000 2,259,OU0 2,150,000 1.740,000 1.740.00 (71536,000) (7,536,000) 12 IS Nat Year'. Dry Period Funding 8.gAirements 1,691,OU0 1,722,000 1,980,000 2.277.00 2,619,000 { 2.611,000 5,213,000 5,273,000 13 ........... ........... ........... ........... ........... . ........... ........... ........... 1N Tom Aa lance or (eellcit) 323,OU0 409,000 279,000 (127.000) (879,000) ( (379,000) (12,309,000) 112,809,000) 14 .... ..ITAL FUND(S) , 15 Reserves 6 carry-aver AT. Last Year 9.601,000 7,360,000 1,607,000 (5,357,000) (3,926,000) ) 9,601,000 (3,881,000) 9,601,OU0 IS ........... ........... ........... ........... ........... . ............ ........... ........... REVENUE 16 Construction Grants 517,OU0 113,000 678,000 678,000 678,000 ) 2,664,000 113,000 2,717,000 16 17 Fees: Connection 680,000 720,000 720.000 720,000 120,000 3,560,000 3,600,000 7,160,000 11 IB Other 30,000 32.000 S4,000 36,000 58,000 ) 170,000 220,000 3"'OU0 18 19 Sale of Capacity Rights 306,0OU 51'OU0 927.000 B66,000 30,0OU 2,104,000 136,000 21320.000 19 20 Interest 6 NLst.11aneas Income 601,000 318,000 0 0 0 1 919,000 0 919,000 20 21 Other Income 0 0 21 .. .. ........... .... . . .... .. .... 22 TOTAL REVENUE 2,134,000 1,240,000 2.SS9,000 2,298,000 1,466.000 9,697,000 4.069,000 13.566,000 22 ........... ........... ........... ........... ........... ........... ........... ........... 23 TOTAL AVAILABLE FUNDING 11,135,000 8,600,000 3,966,000 (1,059,000) (2,458,000) ( 19,098,000 108,000 23,167,000 23 ........... ........... ........... ........... ........... ........... ........... ........... EXPENDITURES 26 Share of Joint Works Treatment Plant 41071.000 6,08.000 5,646,000 2,690,000 1.348,000 ) 20,235.000 31203.000 23,S10,000 26 25 District Collation System 190,W0 515,000 1,675,000 175,000 15.000 ( 2,630,000 6,200,000 AM MAR 25 26 Reimbursement Agreement Payments 0 0 26 27 Other Expenditure. 114,000 114,000 114.000 27 ---....---- ----------- ----------- ----------- ----------- - ----------- ----------- ----------- 28 TOTAL EXPENDITURES 4,375,000 6,993,000 7,323,000 2,865,000 1,423,000 ( 22,979,000 9,403.000 32,462,000 28 ........... ........... ........... ........... ........... . ....... ... ........... ......... 29 Reserves A Cafry-over to Next Year 7,360.000 1,607,000 (3,357,000) (3,924,000) (3,801,000) ( (3,981,000) (9,295,0001 19,295,000) 29 ............ ............ ............ ............ ............ ........... ........... ........... MIT INDICATION DISTRICT NO. 11 Schedule C STAYINN1 OF 9NWECTED CAN FLON 11/17/87 FISCAL YEARS 1917-11 TOR= 1996-97 Page 2 Imes/ LINE 1"1-88 1918-" 1989.18 IM-91 1991-92 5-Tar Total IM-97 10-lear fatal LINE _... ....... ....... ....... ....... ....... 1 ------------ ----------- ------------- ---- 10110 FWD($) ------------ SO Reserves a prrY-Over Free Last Year $8,800 61,000 SIM 52,M Ifi'm ! M,WO 91,Ose X,WO Be ._-------- .._------- ----------- ----------- ----------- - ----------- ----------- ----------- REVENUE 31 lax Levy 55.000 $0.000 45,OW SS,WO 25.W0 210,000 25.000 235,00 SI 32 Interest 1 Niscellamemes ]mass 4,000 S.VA 3.000 5,000 6.000 i Diesels 1,000 25.000 32 53 Other 1. 0 3S ---------- ___________ ___________ --------I., ___________ , ----------- ----------- ----------- 34 TOTAL REVINUE 59,Ose S3.0" 49.0001 10.000 31,OW i 231.OW 29.se0 260,W0 31 ........... ........... -------I... .____.. ... .........1. , ----------- ----------- ----------- 3S TOTAL AVAILABLE FUNDING 117,011 I0I.m 62.OW 92.Ose 107,00 ) 2"'we IM,WO 318,0se 35 _________ -----__---- ___________ ___________ _ -------_--- ------_---- ----------- EXPENDITURES 36 TOM principal A let enst 69,Ose 67,Ose 30.000 16,000 16,Ose I I98,000 a1,se0 281,000 36 � 37 Other Expenditures 37 .-........ ........... ........... ........... ........... . ........... ........... ........... 38 TOTAL EXPENDITURES 69,ase 67,Ose 30,se0 16,se0 16.Ose 1 1%,OW P.m 2871000 38 ........... I.......... ........... .-----I..,. ........... , ----------- ----------- ----------- 39 Be,.,. 1 Carry-Over to Next Year 68.00 34,W0 52.W0 76,OW 91.OW 1 91.see 31,000 31,se0 39 40 Next Yar's Dry aerial Forth np ReWirmeeats N.Ose 31,000 52,000 16,000 91,W i 91,Ose 31.se0 31,000 10 ._.-._... ._-------- ----------- ----------- ----------- - ----------- ----------- ----------- 41 FUND Balance ar (Deficit) 0 a 0 0 0 j 0 0 a u SWNARY (Adjusted for Inter-FuM Transfers) 42 Reserves a Carry-Not Frop Last Year 12.114,01TO 9.221.0011 3,712,000 (1,016,Ose) (1,69B4OW) i 12,I30.040 12.09,Ose) 12,130,000 02 U TOTAL REVENUE 1.536,00 5.017,040 6,695,01TO 6,783,000 6,326,000 1 29.185,000 35,010,W0 6e,Ms,OW 63 ........... ........... ........... ........... ........... . ........... ........... ........... AN TOTAL AVAILABLE TAKING 16,666,000 10,275,000 10.267.00A 5,737.000 4,626.00) 41,315,001) 33,420.0se 76.785.W0 NR 45 TOTAL EXPENDITURES 7,431.W0 10.503,000 11,313,Ose 1,435.00 6,676,e00 13,365,1110 9,270,00 93.515.0u0 05 ........... ........... ........... ........... ........... ........... ....1--,-,, -1--- ....- 06 Reserves a Carry-Over to Next Year 9,22B,W0 3,112,008 (1.446.0141 (1.698.0 01 (2.030,Ose) i (2,OSO,Ose) (16,IW,OW1 (16,000,000) 46 11 Neel Year's Dry Paried Fu91n9 Requirements 1,545,000 1,756,00 2,032,40 2,353,001, 2.719,000 i 2,714,000 5.304,e0 S.304.000 67 ........... ........... ........... ........... ........... . ........... ........... ........... a8 FUND BALANCE CA (DEFICIT) I.M,Ose 2.016.401 (3,071,W0) I/,OSI,se0) (0,160.00) i (6,160,000) (22.106,W0) (22,IOA.OWI N February 1, 1988 Exhibit D NOTICE OF PUBLIC HEARING Notice is hereby given pursuant to California Health and Safety Code Section 5473.1 of a public hearing to be held by County Sanitation District No. 11 of Orange County, California at 7:30 p.m. on Thursday, February 18, 1988, in the Council Chambers at Huntington Beach City Hall, 2000 Main Street, Huntington Beach, California. Said hearing is to be held for the purpose of reviewing written reports pertaining to the providing of sewer service for all properties within County Sanitation District No. 11, and to consider public comments regarding use of the County of Orange property tax roll for billing of District sewer service charges for sewer collection, treatment and disposal services for the fiscal year commencing July 1, 1988. County Sanitation District No. 11 provides sewage collection, treatment and disposal services to your property. Your residence or business is connected to a city sewer in the street and you pay the city a sewer service fee to collect the sewage from your property and deliver it to the County Sanitation District's sewerage system. District No. 11 collects your wastewater from the local street sewer system and transports it through its large interceptor sewers to the treatment plants in Fountain Valley and Huntington Beach where the sewage is treated and disposed of in accordance with strict state and federal laws. District No. 11 has also established a sewer service fee for its services of treating and disposing of your sewage. The District sewer service fee is $2.20 per month ($26.40/year) for residences, and $18.90 per 1,000/sq. ft. per year for commercial and industrial customers with larger discharges. Federal and state law makers and environmental agencies, including the U.S. Congress and the United States Environmental Protection Agency at the federal level; and the State Legislature, State and Regional Water Resources Control Boards at the state level, have adopted increasingly stringent laws and regulations to protect our environment. To comply with the new, more stringent requirements, the County Sanitation Districts have constructed $124,000,000 of new advanced sewage treatment facilities. The District's sewer service fee helps defray the higher costs of operating and maintaining these treatment and disposal facilities which remove the toxic materials and other pollutants from the sewage and dispose of the treated wastewater in a safe manner to protect the public health and safety and the environment. PROPOSED BILLING AND COLLECTION METHOD County Sanitation District No. 11 is proposing to collect its sewer service fee on the annual property tax bill. Use of this more cost-effective alternative method would allow the Districts and its customers to save the costs of producing, mailing and handling separate utility bills for direct payments. Every property owner within the District receives an annual property tax bill from the County Tax Collector. California Health and Safety Code Section 5473 allows the District to place our sewer use fee on this bill as a separate line item, and allows the convenience of including payment for District No. 11 sewerage services with property tax payments. Therefore, effective with the billing year beginning July 1, 1988, the Board of Directors of District No. 11 is proposing to use this billing method to help keep the cost of service down. The above noticed public hearing is to consider the proposal to use the property tax to collect the annual sewer user fee instead of a direct separate and more costly billing method. ..r FURTHER INFORMATION If you have questions or wish further information, please call the Sanitation Districts' office at (714) 962-2411, Extension 5. MEETING DATE Nov. 24, 1987 TIME 5:30 p.m.DISTRICTS 11 DISTRICT 1 JOINT BOARDS (EDGAR)........HOESTEREY..._ _ _ (PICHLER)..........BAY........._ (CRANK)........HANSON...... _ _ (FRIED)............BIOONGER...._ (YOUNG)........DRIEST......_ (HORSY)............CATLIN...... (ROTH).........STANTON..... (PLUMMERI..........COX......... _ (PERRY)............CULVER...... DISTRICT 2 (WE, NEDr)..........EDGAR....... _ (MC CONE)..........GRIFFIN..... (NORSY).........CATLIN...... _ _ (YOUNG)............GRISET...... (FLORA)........MAHONEY....._ _ (CRANK)............HANSON...... (PICKLER)......BAY......... _ _ (COX)..............HART........ (FRIED)........B IOONGER...._ _ _ (EDGAR)............MOESTEREY..._ (YOUNG)........DRISET......_ _ _ (CORONADO).........KANEL....... (NELSON).......LEYTON......� _ _ (WINCHEL L).........KELLY.......� (SCOTT)........NEAL........� _ _ (EDGAR)............KENNEDY.....� (DOWNEY).......NEWTON......� ' (NELSON)...........LEYTON......_ (CULVER).......PERRY......._ _ — (FLORA)............MAHONEY....._ (PASSENGER)....SILZEL......� (PLUMMER)..........MAURER... (PEREZ)........SMITH....... _ (GREEN. P).........MAYS..... (ROTH).........STANTON....._ _ _ (AGRAN)............MILLER. S..._ (BIGONGER).........MURPHY...... DISTRICT 5 (SCOTT)............NEAL........ _ (SUTTON)...........NELSON...... _ (MERMAN).......POLIS ......— _ — (DOWNEY)...........NEWTON...... (WEISHAUPT)....SAPIEN...... _ _ (CULVER)...........PERRY....... _ (PICKLER)......SAY......... _ _ (HERMAN)...........POLIS.......� (MOREY)........CATLIN......� _ _ (STANTON)..........ROTH........ (PERRY)........CULVER...... _ _ (WEISHAUPT)........SAPIEN...... (MC CONE)......GRIFFIN..... _ _ (WILES)............SIEFEN...... (YOUNG)........GRISET...... _ _ (PASSENGER)........SILZEL...... (CORONADO).....KANEL.......� _ _ (PEREZ)............SMITH....... (WINCHELL).....KELLY......._ (ROTH).............STANTON.....� (FLORA)........MPHONEY....._ (NELSONI...........SUTTON......� (SCOTT)........NEAL........ _ _ (MILLER. ...SWAN........_ (SUTTON).......NELSON......_ _ (BERNAL)...........SYLVIA...... _ (WILES)........SIEFEN......� (GREEN.H/JOHNSON).,WAMMER...... _ (ROTH).........STANTON..... (CLIFT)............WILSON...... (BERNAL).......SYLVIA......_ (CLIFT)........WILSON......_ DISTRICT 5 STAFF.DISTRICT BROWN.......5� (COX)..........HART........_ — _ ANDERSON...._ (PLUMMER)......COX........._ _ _ BUTLER......JC (STANTON)......ROTH........_ CLARKE.......wc� CLAWSON....._ DISTRICT 6 DAWES.......y.,, DEBLIEUX...._ (JOHNSON)......MANNER......_ _ _ HODGES...... (PLUMMER)......MAURER......_ _ _ NOLL........ (STANTON)......ROTH........_ _ — KYLE........ LINDER...... DISTRICT 7 GOTEN....... STREED...... (KENNEDY)......EDGAR......._ _ _ TALESI...... (ABRAM)........MILLER. S..._ _ _ VON LANGEN (PLUMMER)......COX........._ _ _ WINSOR...... (YOUNG).... (STANTON)......ROTH........_ (PEREZ)........SMITH......._ (GREEN. M).....WANNER...... _ OTHERS: WOODRUFF.... ATKINS......� DISTRICT 11 HOHENER..... HOWARD...... (WINCHELL).....WSWW.......Y_ — HUNT........ (GREEN. P).....MAYS........}L _ KEITH....... (ROTH).........S TANTON.....- L— _ KNOPF....... LINDSTROM..._ DISTRIC LYNCH....... STONE....... (BIGONGER).....MURPHY......_ _ _ YOUNG....... (PICKLER)......DAY........._ (STANTON)......ROTH........_ (PEREZ)........SMITH......._ (NELSON).......SUTTON......_ DISTRICT 14 (AGRAN)........MILLER. S..._ (MILLER. D)....SWAN........_ _ _ (EDGAR)........KENNEDY.....— (STANTON)......ROTH........_ (PEREZ).:......SMITH......._ 08/12/87 DISTRICT 11 ADJOUM D MEETING NOTES NOVEMBER 24, 1987 - 5:30 P.M. The meeting convened at 5:42 p.m. 63 - Staff Report The General Manager reported that over the last 1} years District 11 has held four special meetings to consider alternative funding sources to finance operating and capital requirements over the next ten-year period. The staff's projections at the time the District was considering these alternatives showed that they would have operating shortfalls of about $20 million and capital shortfalls of about $10 million. In July 1986 the Board considered and rejected the option of debt financing. Three Districts did opt to go with it. On August 20, 1987, the Board approved and initiated an increase in the connection fees to $1,500 per residential unit and $300 per 1,000 sq. ft. which took effect on November 13, 1987. On August 20th they also approved a plan to implement a supplemental user fee program effective in July 1988 which would call for the initiation of sewer fees beginning with the 1988-89 fiscal year of $26.40 for single-family dwellings; $15.85 for multi-family dwellings/apartments; and $18.90 per 1,000 square feet of commercial and industrial property. This program is identical to the programs adopted in Districts 1, 5 and 6. District 3 has also taken preliminary action and plans to implement the same program in 1987 effective with the 1989-90 fiscal year. Over the next ten-year period the Boards will have to periodically review fee schedules. The purpose of the meeting that night was to introduce the supplemental user fee ordinance. The second reading and final adoption will be at the regular December Board meeting. At August 20th meeting the Board reviewed the implementation measures for the supplemental user fee program. It provides that once a fee is adopted, all property owners will receive notification of the District's intent to collect the fee on the property tax bill. A public hearing is required to collect fees on tax bills but not to adopt the fee itself. The schedule calls for staff to send out the notice in late December or January. 7b conduct workshops on February 4th and on February 18th hold a public hearing on the proposal to collect the fee on the tax bill. Mr. Sylvester armed that staff was prepared to go into whatever level of detail the Board would like concerning the plan and implementation schedule. It is basically the same as discussed in August. (5:48 Stanton arrived) Be added that District 6 raised their fee 10%. District 1 will consider a raise of their fee next year and District 6 will have to continue to do the same thing. Director Mays asked how much of a fee would have to be adopted to nuke up the deficit? Bill Butler replied that it depended how long they wait to do it. we attempt to maintain a 20% contingency reserve. It is anticipated to raise the fee in 1991 to $45.00 although if the District follows District 6's pattern, they could stage the increases the way they did and increase could be phased in sooner. The General Manager added that the current fee schedule will get the District through the next couple years in the operating fund. The pending Bolsa Chica issue will have an affect but don't know what it will be yet. We have scheduled several meetings with them but they have cancelled. It would help the situation if this area paid property taxes. Director Winchell asked if the previous notices and public hearings got a large response from the people. Mr. Sylvester advised that District 5 held three workshops and only 21 people showed up. Districts 6 and 1 were about the same. Director Mays asked if any of this money would be used for the Bolsa Chica area for the Coast Trunk Sewer and all the other casts? Tom Dawes answered that this fee wouldn't be used for any of the construction costs. They will cane from connection charges paid by developers. Winchell ccnmented that if the Coast Trunk Sewer will replace the Slater Ampx Station, operating charges will be reduced, and capital costs will be financed out of the connection charge of $1,500 per unit. Tom Dawes replied that if Bolsa Chica annexes, it will generate a large revenue that will finance the Coast Trunk. If it doesn't annex, there wouldn't be enough to build the Coast Trunk but will have to rehabilitate the Slater Amp Station. It was explained that annexation to the Sanitation Districts and annexation to the City of Buntington Beach were two separate annexations. The developers served by the Coast Trunk Sewer would pay connection fees and the cost of the sewer. Huntington Beach Company, etc. The General Counsel indicated that this ordinance is the same as the other Districts. 4(b)&(c) - Ordinance No. 1108 Director Winchell moved said items and Stanton seconded motions. They carried unanimously. -2- COUNTY SANITATION DISTRICTS PAGE —OF_ OF ORANGE COUNTY, CALIFORNIA W.O. ✓�A CAM BY SUBJECT DATE w DESCRIPTION CHECKED BY DATE 1-`gCII (SD,MIi AA'r6 n�ti��bl - 11PI � (Ia s0r AA TIC L1z'r I - '/1 /�✓Rs 1, CDM SI n(=2 �ALTL-'YLUA TVi (-U vOr4b S"Wrl')S FUR �rurAlln�rN4 �'YXhR 'pP�Fah.,�.` Rw'� L'rpl arrL lt-'9VIr(�Ali�f, fA+n Irk, 1v"r ro r 0'IQ. 04 L7fL'7 A 0(>LY(A-I, . cjhaTr-ALLS 42q NM l0 ( L - (hkkrti�, A rThL S1}1nfMhLS � I0,'1 NA/i - ICJ �aLIJ ISB(. Tldt (rmMO CGNs�YloTlc ,'J ..,y..t Llm'Cti 9(5fKr )^,NAIJI u(. rrA(.0 4r -).a, 1951 A-(' rK Cq'I.I=.'{)L+YIhTi ll' I?t:V u'Nl/ 440n 9I%Oc,roU oy= r'URIu(IV(. .rLTin1.%+ nLL�Z TrIF" &AVP /tpQR-evrn .*x�D 1 u� nA-,u 1) /� 14rf Yf m'hSe' iv 'rl{tr CQMr NrT Tl rl1. 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Ip MIC COUNTY SANITATION DISTRICTS PAGE OF OF ORANGE COUNTY, CALIFORNIA °LO CALL.BY SUBJECT DATE DESCRIPTION CHECKED BY DATE � ?k� huc,LtsT �o nAr�-nwe tf11f 8ohre O e m¢r wlPu°Meuev 1}to .v4 >U 00nS)n&4A+vc' L tM�t`y INa� GLz��S ,t-atr qa4otrn 'n' tier Cdl.tt� c21] arJ r17k S 18 T MaSR 4ss�(i=rt� v� V�1A I 'N CeLkMr 'Rhc rs�^T Kip K�-s o ay 'Di cm (n.tr Mkt,' Tel=S httr' kD�CnLQ l� . KAMt�r WILL Rr SL r T TD ,pw-^R`, 6%444 L-A tJJ ntlf D)ST _VO& LA%- ?e&UtFCL- , -140- MkF &tlt Q *,LO 4.E1M,i.6 oU r^y,t P jeoyt-t R"a CJILLRT Tktr ttiIZA-r Ir-LXe" 6V 'Thy^ q"l nT ( "AY KILL — Pal ko kUcC'tT I7N Fll. YT-.e V� i WhcM I ( t3t�fi.,rtc '/Cu r1H i 6♦t �r In c1.=r 1s 'Z#e9ut0,� ^ro O-vL1) fr Cu(Si1 ( U"PC. 1 49 'u "Fir' QPlA ft Y Ou z/•//bF TI'L` Qu K( IC fIfKl" I S �eL L t-0 Ton -LI,Vs') .i rt-f)v I I. 0-L l S rex k L<cTl*lv 04= 5c4evcc rGLrLi .TO (c.�roti v.•^f mac- ��t- b`I TAy G LL_ - Me (01WW — W AAfOvSul _ t•,a,je v Le2'/ )`lWIC1% (AAw'./t1T•I ()f (.1"1 T)1 1 11� I� rum ovvf) hA&U< '_ _. 0 C'TArx � fAh Ir�ti L- 1� �J Itl7ilL'LU � RllNI vAIT n+r . Mitt (-?kW LlAk t_ bl: LF-4I l `/rL I.NSIt V COUNTY SANITATION DISTRICT NO. ll OF ORUM WNW, CUJFaWrA MINOTES OF ADJOURNED REGULAR MEETING November 24, 1987 - 5:30 p.m. 10844 Ellis Avenue Fountain Valley, California Pursuant to adjournment of the regular meeting of November 18, 1987, the Board of Directors of County Sanitation District No. 11 of Orange Canty, California, met in an adjourned regular meeting at the above hour and date. The Chairmen pro tem called the meeting to order at 5:42 p.m. The roll was called and the Secretary reported a quorum present. DIRECTORS PRESENT: Tan Mays, Chairman pro tom, Roger R. Stanton and Grace Winchell DIREC10R4 ABSENT: None STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager, Rita J. Brown, Secretary, Thomas M. Dawes, William H. Butler, W. N. Clarke OTHERS PRESENT: Thomas L. Woodruff, General Counsel x x x x x x x x x + + + + Staff report on ilamentation of The General Manager reported that long-range financial program during the last year and a half District 11 has held four special meetings to consider alternative funding sources to finance operation and capital requirements over the next ten-year period. The purpose of this long-range financial planning is to assure adequate funding to carry out the Districts' wastewater management program for the benefit of the c wmanities and the two million citizens which the Districts serve in metropolitan Orange County. For some time projections have indicated that funding shortfalls in District No. 11 would begin to o>ecnnr as soon as 1989 and that the District would have to consider additional revenue sources to meet the District's long-term funding requirements for sewerage facilities u qxovements and expansion, and ongoing operations and maintenance costs. Operating shortfalls world total approximately $24 million and Capital shortfalls would be over $10 million without additional funding. In July 1986 the Board onnsidered and rejected debt financing as an alternative. Following further study, at an adjourned meeting on August 20, 1987, the Board approved initiation of proceedings to implement a �..✓ supplemental user fee program and increase the District's connection fees. District ll 11/24/87 At the regular meeting on October 14, 1987, District ll adopted Ordinance No. 1107 increasing the connection fees to $1,500/dwelling unit and $300/1,000 sq. ft. for commercial and other non-residential property. The proposed supplemental user fee program would be effective on July 1, 1988, with the initiation of the following fees beginning with the 1988-89 fiscal year: Annual Charge Effective Class of User Basis of Charge July 1, 1988 Single-Family Annual Charge $26.40 Dwellings/Condominiums per Dwelling Unit Multi-Family Annual Charge $15.85 Dwellings/Apartmants/ per Dwelling Mobile Hanes Unit Commercial/Industrial/ Annual Charge per $18.90 Other 1,000 Sq. Ft, of Building Based on the July 1988 implementation date, the District's operating fund would remain solvent through 1991-92 with the initial rates in place. Staff advised that once implemented, the use fee amounts would have to be evaluated annually to make sure that the program provides adequate revenues to meet the District's ongoing funding needs. It is anticipated that the user fee will need to be increased to $45.00 in 1991 to cover future shortfalls. The Director of Finance pointed out, however, that the District could elect to phase-in the increase in smaller increments but, in that case, would need to revise the ordinance sooner than 1991. The General Manager cummnted that the pending issue of annexation of the Bolas Chica area to the District will have an effect on District 11's financial position, but that effect cannot be determined at this time. It was explained that construction of the proposed Coast Trunk Sewer to serve the Bolsa Chica area would be financed by connection fees paid by developers, not by user fees. Regardless of the eventual outcome of the Bolsa Chica annexation, implenentation of the proposed supplemental user fee program is necessary. The General Counsel reported that the proposed ordinance establishing sanitary sewer service charges had been written in the same format as those in effect in Districts 1, 5 and 6 which have previously adopted a supplemental use fee program. First Reading of Proposed Moved, seconded and unanimously carried: Ordinance No. 1108 That proposed Ordinance No. 1.108, An Ordinance of the Baird of Directors of County Sanitation District No. ll of Orange County, California, Establishing Sanitary Sewer Service Charges, be read by title only; and, FURTHER MOVED: That reading of said ordinance in its entirety be, and is hereby, waived. -2- :,.lDistrict 11 11/24/87 Following the reading of Ordinance No. U08 by title only, it was moved, seconded and duly carried: That Ordinance No. 1108, An Ordinance of the Board of Directors of County Sanitation District No. 11 of Orange County, California, Establishing Sanitary Sewer Service Charges, be introduced and passed to second reading on December 9, 1987. Directing to proceed with Following a discussion of the planning for implementation of user procedures for Completing implements- fee program and authorizing ticn of the supplemental user fee issuance of purchase order to O.C. program and utilization of the Assessor forester programming annual property tax bill for and EDP processing collecting the yearly fee, it was moved, seconded and duly carried: That staff be, and is hereby, directed to proceed with planning for implementation of the proposed user fee program in accordance with the revised implementation schedule, and, FUrMM MY=: That the staff be, and is hereby, authorized to issue a purchase order to the Orange County Assessor in an amount not to exceed $75,000 for confuter programming and EDP processing to provide data base information, mailing labels and parcel charge tapes relative to planning and implementation of user fees to be collected on the property tax bills in District No. 11. Adjournment Moved, seconded and duly Carried: That this meeting of the Board of Directors of County Sanitation District No. 11 be adjourned. The Chairman pro tea then declared the nesting so adjourned at 6.00 p.m., November 24, 1987. Secretary, Bof Directors County Sanitation District No. 11 of Orange County, California ... -3- 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 dd w w)-, a 4 , 1987 was duly posted for public inspection at the main lobby of the District' s offices on '+14QxAO)L � q , 1987. IN WITNESS WHEREOF, I have hereunto set my hand this �Q day of \J,& .wA4. , 1987. Rita J. Brown, Secret ryof the Board of Directors of County Sanitation District No. - of Orange County, California -