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HomeMy WebLinkAbout1987-12-17 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA a P.O. BOX 8127. FOUNTAIN VALLEY, CALIFORNIA 92728-8127 10844 ELLIS,FOUNTAIN VALLEY,CALIFORNIA 92708-7018 (714)962-2411 December 10, 1987 NOTICE OF ADJOURNED REGULAR MEETING DISTRICT NO. 5 THURSDAY, DECEMBER 17, 1987 - 2:00 P.M. 10844 Ellis Avenue Fountain Valley, California Pursuant to adjournment of the regular meeting of December 9, 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 consider revisions to the District's connection fee program for capital financing, and financing and construction of facilities to serve the downcoast area. sect tary BOARDS OF DIRECTORS County Sanitation Districts f mt offim Box 8127 of Orange County, California 10844 Ellis Avenue Fountain Valley, Calif., 92708 Tel Cod. 7 DISTRICT No. $ A4 01d 6 -2 11a2-24 9 AGENDA ADJOURNED REGULAR MEETING THURSDAY, DECEMBER 17, 1987 — 2: 00 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 connection fee program for capital financing, and downcoast sewerage facility planning. ( 4) Consideration of actions re connection fee program for capital financing and downcoast sewerage facility financing: (a) Consideration of motion authorizing and directing staff to negotiate an agreement with IRWD and/or The Irvine Company to provide advance funding for sewerage facilities to serve the downcoast area for consideration by the Board at a future meeting. (b) Consideration of motion authorizing and directing staff to draft a revised connection fee ordinance for first reading at the January 13 , 1988 regular meeting, increasing the connection fees to $1,500 per dwelling unit and $300 per 1,000 square feet for non-residential development. ( 5) Other business and communications, if any (6 ) Consideration of motion to adjourn MANAGER'S AGENDA REPORT County Sanitation Districts Post Offiu Box 8127 of Orange County, California 10844 Ellis Avenue Fountain Valley, Calif., 92708 Uaphenes; Ana Code 714 DISTRICT NO. 62-2411 MANAGER'S REPORT TO DISTRICT NO. 5 DIRECTORS MEETING -DATE: DECEMBER 17, 1987 Item No. 3: Staff Report and Recommendations on District's Connection Fee Program for Capital Financing Attached is a staff report evaluating the District's connection fee program for financing construction of sewage facilities and its impact on the Downcoast area. Staff will review the report in detail with the Board at the meeting. COUNTY SANITATION DISTRICTS d ORANGE COUNTY. CAUFORNIA 1p EWE AVENUE 12/9/87 Pa.Eoz EIP7 \ / MWMNVAUEY.GIMWAEE) 8127 STAFF REPORT DISTRICT'S CONNECTION FEE PROGRAM FOR CAPITAL FINANCING Background Connection fees charged to new development are the primary source of capital funds for the District. A portion of the annual supplemental user fee is also allocated for the capital facilities replacement program now underway in the District. Last year the Board considered and rejected use of debt financing as a means of providing some of the funds needed for the costs of providing service that continue to rise to keep pace with the stringent requirements of the federal and state regulatory agencies for advanced treatment and the need to provide additional capacity to meet the increasing demands on the sewerage system. Connection Fee Review Staff has recently completed a review of connection fees throughout the Districts based on an analysis of the historical casts of planning, designing and constructing facilities both in the individual Districts' collection systems and in the joint works treatment and disposal facilities. The current cost of providing collection system and joint works capacity ranges from $1,485 to $1,688 per unit for a single family/multi-family unit and from $297 to $337 per 1,000 square feet of commercial , industrial , governmental and other types of office facilities. Exhibit 1 presents a summary of the current connection fees in the other Districts. Districts 1, 6, 11 and 13 have already taken actions to increase their basic connection fees to the appropriate cost of providing capacity, and District 3 recently doubled its basic fees and is phasing in an increase of its fees to $1,500/$300. Districts 2 and 7 will consider fee increases later this fiscal year. The amounts of $1,500/$300 have been determined to be the appropriate fee largely to simplify administration of collecting the fees by the cities on behalf of the Districts. Because the cities cross District boundaries, a consistent fee schedule is much easier to administer. Last year the District No. 5 Directors modified their financial plan and adopted an ordinance increasing the basic connection fee in a phase-in schedule to provide additional capital funds as follows: Single/Multi-Family Commercial/Industrial/ Zone Dwelling Units Governmental/Other 1 $ 500 per dwelling unit $ 260 per 1,000 sq. ft. of bldg. 2 $1,100 per dwelling unit $ 570 per 1,000 sq. ft. of bldg. 3 $1,500 per dwelling unit $2,400 per 1,000 sq. ft. of bldg. Page Two 12/9/87 Staff has also recently completed an evaluation of the appropriate connection fee levels for both District 5's share of the costs of expanding the joint works treatment facilities as well as the District's collection system. Staff's analysis indicates that the basic fee for new connections to pay the costs of the treatment facility expansion and the backbone master-planned collection system in Pacific Coast Highway should be consistent with the fees in the other Districts, and should reflect the flow ratios prevalent in the other Districts as follows: Dwelling Units Commercial Facilities $1,500/DU $300/1,000 sq. ft. The present connection fee schedules in Zones Nos. 2 and 3 reflect pay back requirements under reimbursement agreements with developers which were approved by the Board in 1976 and 1981. Revenues from increases in the proposed basic fee will continue to be used to pay back the outstanding funds owed by the District under the terms and conditions of these reimbursement agreements. Proposed Zone No. 3 (Downcoast) Development/Sewerage Service For the past several years, staff has maintained an ongoing dialogue with the Irvine Ranch Water District, the local sewering agency in the Downcoast area, and The Irvine Company, the property owner, to identify the specific development levels and evaluate the costs of planning, designing and constructing the master-planned trunk sewer facilities to serve the Downcoast area. The Irvine Company has recently received approval from the County Board of Supervisors and the California Coastal Commission to move forward with development in the Downcoast area. Accordingly, discussions have been held as authorized by the Board relative to financing of the facilities necessary to serve the Downcoast area. A tentative plan has been formulated that includes two major elements: - IRWD will finance the full cost of all master-planned sewers in Zone No. 3 using existing general obligation bond authority. IRWD and/or The Irvine Company (TIC) will pay advance connection fees to District 5 for development now approved by the County and the Coastal Commission for construction in Zone No. 3. Current Zone No. 3 Connection Fee Basis In 1983 the District prepared a Master Plan report which recommended connection fees for residential and commercial development within Zone No. 3 of District No. 5. The recommendations were based on a land use mix different than the currently approved land use mix. The consultant in the 1983 Master Plan recommended $1,200 per residential unit and a commercial charge or $2,000 per \. 4000 square feet of development. These fees were subsequently raised in the same proportion to the current Zane No. 3 fee of $1,500 per residential unit and $2,400 per 1000 square feet of commercial development. Page Three 12/9/87 ... The recently-approved Downcoast development plan calls for 3,400 residential units and 3,210,000 square feet of commercial facilities. The District's calculations, based on the current development estimates used for the prepayment calculations, show that the approved level of development would generate up front revenues of $6,063,000 based on a connection charge of $1,500 per residential and $300 per 1000 square feet of commercial development, as determined to be the cost of service as discussed previously in this report. The current proposal is to prepay connection fees for the estimated level of development, thereby guaranteeing funds will be available. If additional units are added, the units would pay at the then current Zone No. 3 connection fee rate. No refund is allowed if less units are built than prepaid. Thus, the fees can be adjusted to more closely match the anticipated construction needs. Exhibit 2 presents an evaluation comparing the District's anticipated expenditures, assuming the District adopted the basic connection fee District-wide of $1,500/dwelling unit and $300/1000 square feet, as calculated. The proposal appears to offer District 5 the opportunity to receive funds up front upon approval of a negotiated agreement rather than on a sporadic basis when development occurs. The master-planned facilities required to support the Downcoast area can then be designed and constructed in a timely fashion without the need for reimbursement agreements which require administration every year until the funds provided to the District via the agreement are fully repaid. Cash Flow Comparison Schedule A, Statement of Projected Cash Flow (excerpted from District 5's 1987-88 budget), presents the District's financial position assuming the District's current connection fees remain in place for the next ten years. Line 29, Reserves and Carry-over to Next Year, indicates that the District's capital funds will experience a deficit of ($1,905,000) by the end of fiscal year 1989-90 and will continue to operate at a deficit over the next several years unless connection fees are increased or other revenue sources such as debt financing via revenue bonds/certificates of participation are employed to generate additional capital funds. Schedule B presents the District's financial position using the following assumptions: 1. The Board approves the proposed basic connection fee of $1,500/$300 effective April 1, 1988, District-wide (eliminate separate zones). 2. IRWD/The Irvine Company pay $6,063,000 in advance connection fees to District 5 on July 1, 1988. 3. IRWD provides $2,475,000 to District 5 to construct master-planned sewer facilities in Zone 3 on July 1, 1988. Line 29, Schedule B, indicates that the District will maintain a strong positive -ash position in its capital fund assuming the proposed assumptions above are `►'implemented in the near future, and will have $10,613,000 in reserve at the end of the ten-year period. Page Four 12/9/87 Proposed Actions Staff recommends that the Board consider the following actions: 1. Direct the staff to negotiate an agreement with IRWD and/or the Irvine Company to provide the funding necessary for providing service to the Downcoast area for consideration at a future meeting. 2. Direct staff to prepare a revised connection fee ordinance for first reading at the Board's next regularly scheduled meeting on January 13, 1987, to establish basic fees as follows: Commercial/Industrial Dwelling Units Governmental/Other $1,500 per Dwelling Unit $300 per 1,000 sq. ft V EXHIBIT 1 12/7/87 CSDOC EXISTING CONNECTION FEES Single/Multi-Family Coimnercial/Industrial/ District/Zone Dwelling Units Governmental/Other 1 $1,500 per dwelling $ 300 per 1,000 sq. ft. 2 $ 220 per dwelling $ 45 per 1,000 sq. ft. 3 $ 500 per dwelling $ 100 per 1,000 sq. ft. 6 $1,500 per dwelling $ 300 per 1,000 sq. ft. 7 Zone 1 $ 250 per dwelling $ 50 per 1,000 sq. ft. Zone 2 $ 250 per dwelling $ 180 per 1,000 sq. ft. 11 $1,500 per dwelling $ 300 per 1,000 sq. ft. 13 Zone A - Variable (fees to be the same as when annexed - see District No. 2 fees) Zone B $1,250 per dwelling $ 250 per 1,000 sq. ft. Zone C $1,500 per dwelling $ 300 per 1,000 sq. ft. EXHIBIT 2 12/8/87 COST OF SERVICE/REVENUE ANALYSIS FOR ZONE NO. 3 County Sanitation District No. 5 PROPOSED IRWD FINANCIAL PLAN FOR ZONE NO. 3 A. Assumption: IRWD will build all master-planned sewers in Zone 3 B. Connection Fee Revenue: (To be paid in full 7/l/88) Residences: 5 0/d.u. x 3400 units $ 5,100,000 2. Commercial : $300/1000 sf x 3,210,000 sf 963,000 Total Revenue: $ 6,063,000 C. Master-Planned Sewer Construction to be built/ Contributed to District 5 by min Zone 3. Total Cost Savings to District 5: $ 2,475,000 Total Revenue/Cost Savings: $ 8,538,000 ESTIMATED EXPENDITURES A. Treatment Plant Expansion Costs to be paid from connection fees: 4042 equivalent dwelling units (EDU) at $922/EDU $ 3,727,000 B. Bayside Drive Extension/Oversizing 2,000,000 C. Payoff of outstanding reimbursement agreement with The Irvine Company 110,000 D. Cost of upgrading dual force main system for Zone No. 3 flows 180,000 E. Cost of Zone 3 Master Plan Sewers 2,475,000 Total Expense: $ 8,492,000 SCNEUULE A / COUNTY MAIIAIIUN DISIRICI 10. 5 fi/l1/8] 1 STe KENT OF PROJECTED CASH FLOW Page 1 ` FISCAL YEARS 1101-88 THROUGH 1916 91 992-931 LINE 191T 1968-89 1969-90 3990-91 1991-92 5-Y... Total 199e91 10-Yeae Total LINE .... ....... ....... .... .. ------- ....... ------- -- - ........... .._---- ---_ .... OPERATING FUND 1 Reserves A Car'Y'0... Fro.last Tear 3,220.000 3,60t1000 3.649.000 5,946,000 4,341,000 3,220.000 4.872.Rod 3,220,006 1 ........... ........... ........... ........... --- -------_.- .-._..---- ._.___• REVENUE 2 Share of 19 hx Allocation 2,248,01ho 2.632,000 4,081.000 3,601,Wo 4,223,000 IS,191,000 14,133,0W SQ52C,000 2 3 fees 31.000 36,000 33,o10 39,o00 41,000 187.000 240,00 421.000 1 . Interest A Niscellaneeus lack.. 235,000 250,000 269,000 294,o00 322.00 IX5.m 2,425,000 3,000,000 . 5 Other A....U. 0 0 5 ........... ........... ........ . ........... ........... .......... ........... ........... 6 101AL REVENUE 2.517.000 2.919.000 3.381,000 3.940,000 4,591.000 11.353,000 31,398,000 54,151,000 6 ........... ........... ........... ........... ........... ........... ........... ----------- I TOTAL AVAILABLE FUNOIN6 5.211,00 6.320.000 1,026,040 1,116.000 8,93B.000 20,5E1,000 e2,210,000 57,911.000 i ........... ........... ........... ........... ........... ........... ........... ........... EXPENDITURES ------------ B So.,. of Joint Works N 9 0 1.80 .000 2.019.000 2.391,000 2,150,000 3,162,000 12,190,000 24,54),dor J6,11I,W0 6 9 (dilation SVet..H 9 0 and Other OPe, S2/,000 602,000 689,0W 189.000 904,OU0 1,511.000 6.914,000 10.485,000 9 10 Other Exp.nditures 0 0 10 ........... ........... ........... ........... ........... ........... ........... ........... II TOTAL EXPENDITURES 2,335,000 2.681.000 3.080,000 3.53910" 4.066.000 15.701.000 31,521.00 41,222,000 11 ----------- ----------- -------- .. ........... ........... ........... ..---.----- 12 Reserves 9 Carry-Over to Next Year 3,602."0 1,639,W0 3,946.000 4.341,000 4,812.OW 4,872,000 10,149.000 I0,14 ,000 12 13 Hart Year's Dry Period Funding annul,...it, 1,168.000 1,541,000 I,See,000 1,170,000 2.033,m 2,033.000 4,01,000 4,089.000 13 ........... ........... ........... ........... ........... ........... ........... ........... la fund Balance or IDeficil) 2,2J4,W0 2,298,000 2.606,000 2.511,0e0 2,839,000 2,039,004 6.m,Fund 6.660,her la ........... ........... ........... ........... ........... ........... ........... ........... CAPITAL FUN0(S) --------------- I5 Reserves 9 Carry-aver fro.List fair 91361.Brad 1.931,000 4,456.000 (1,905,000) )1,423,000) 9,381,"0 12.909,000) 9,301,000 IS ----------- ----------- ----------- ----------- ----------- , ------------ ----------- ......... . REVENUI 16 Coretmilion Bunts $17,000 82.000 494,000 494,000 494,000 1,941,o00 02,000 2,023,000 16 11 Pees: Connecl3on 756.000 1.494.000 1.291.000 1.241.000 1.291.000 6,123.000 6,155,000 12.518,000 11 18 Other 665.000 710.000 7.S,000 115,000 808,000 31101.OU0 J.810,000 I,S11,M IB 19 Sale OI CRPau IV Rights 223.M 42,000 38,000 630.000 22,000 955,000 99.000 1,051,000 19 20 Interest 6 Nisc011aneous Iran.. 614,000 439.000 90,000 0 a 1143,000 0 1.143,0e0 20 21 Other Inm.e 515,000 2,050,000 s00,00o 1,10➢,000 4,32S,000 350,000 4,6)5,000 21 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 22 TOTAL REVENUE 3,210,00D 4.917,000 2.956.000 4,590,000 2,615,000 18.188.00 10.856,000 29,014,000 22 ----------- ----------- ----------- ----------- ----------- ----------- - - _ ........ 23 IOIAL AVAILABLE FUNDING 12,591,000 IR.754,000 1,412,000 2.185.ROD 1,192,000 21.519.w 1,861,000 30,.25 U0o 23 ........... ........... ........... ........... ........... ........... ........... ........... ESPENOIIURES ------------ 2. Share of Joint Works Irutwfii Plant 2.969,000 4.125,000 4,120,0ho 1 90,000 984.000 14.160,000 2.395,000 11,IS$.000 24 25 DistI llt C011ectioa 5111e. 1,529,OW 2.690.000 1,615.000 I,425.000 2,415.000 11,594,00 2.164000 14.154.w 25 26 Re eturseseat Agieeeent PAY18015 116,000 083,000 122.000 121.000 122,000 3 20.;100 3.0I.4Oo e,611,000 26 21 Other I,...oil.... 0 0 21 ........... ........... ........... ........... ........... ........... ........... ........... 28 TOTAL IXPINDIIURES 4,654,000 6.290.000 9,311,000 4,1%,M 4,I61,000 10.558.000 8,161.000 2.120.000 28 .......... ......... --------- ... -_.. ........... ._. ...... ........... ........... 29 Reserves 9 Carr V'over to Next Year 1.937.000 A,Ue 000 it.'id5,00J1 1I.aJ 0001 12.989.000) 12.909,0001 (295.0001 1215.000) 29 P SCHMULE A COUNTY SANITATION DISTRICT DR. 5 1/17/87 SIR HINT OF PROJECTED CASH FLOW Page 2 FISCAL YEARS 1987-89 THRHGH 1996-91 1992-93/ LINE 1907-88 1988-89 1989-90 1990-91 1991-92 5-Year Total 1996-97 10-Year Total ....... ....... ---I--- ------- ------- ------------ ------ BOND FUNI(S) ------------ 30 Reserves G Carry-Over Free Last Year 30,000 32,000 21,000 25,000 o 30,HD 0 30,000 30 ........... ........... ........'-- ----------- ----------- , ----------- ----------- ----------- REVENUE 31 Tax Levy 22,000 21,000 20,000 63,000 63,000 31 32 Interest 6 Niscellaneous Income 2,01s0 2,000 2,000 1,000 0 2,000 0 7,000 32 33 OlOer Isom. 0 33 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 31 TOTAL REVENUE 24,H0 23,040 22,000 1,000 0 90,000 0 10,0H 36 ----------- ----------- ----------- ----------- ........--- ----------- ----------- is TOTAL AVAILABLE FUNDING 54,000 55,H0 51,0H 26,0040 0 100,H0 0 100,OH 35 .-I-- ----------- ----------- I ----------- ----------- ---------.. EXPENDITURES ------------ 36 Bond Principal A Interest 22,000 26,OH 26,000 26,000 100.000 100.000 36 52 Other Expenditures 59 ........... ........_. ------.--....... ...._---.- ----------- .-_._ --- ----------- ..-..--.--- 38 TOTAL EXPENDITURES 22.000 26,000 26,000 26,000 0 100,000 0 100.000 30 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- 31 Reserves L tarty-Over to Next Year 32,000 29,000 25,000 0 0 0 0 0 39 60 Next Yer's Dry Period Funning Requirounls 32.000 29,000 25,H0 0 0 0 0 0 60 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- el Fund Balance Or )Deficit) 0 0 0 0 0 0 0 0 11 ............ ............ ............ ............ ............ . ........... ........... ........... SUNNARY )Ad3ested for Inter-Fend TFanBterB) 62 Rotor.es L Carty-Over From Last Year 12,631,000 11,571.000 8.124.000 2,066,000 2,926,0100 12,631,H0 1,08S,H0 0,631.000 92 43 TOTAL REVENUE 5.751,000 1,258,00 6,365,000 A,SJ1.000 7.206,000 35,611,000 48,254.000 83,865,00 63 N6 TOTAL AVAILABLE FUNDING 18,382,000 19,129,000 16,e09,000 10,597,000 10,130,000 48,242,000 501132,000 96,496,000 96 45 TOTAL EXPENDITURES 7,011,000 11,05.000 12,623,0150 7,673,000 8,269,00D 1 46,359,e01) 39,683,000 86,042,000 45 _.-.._-.. _--------- ----------- ----------- ----------- ----------- ------- --- ----------- 46 Reserves 6 Carr9^Over to Next Year 11,311,00 8,126,000 2,066,000 2,424,000 1,881,00 I,88S,00 I0,454,H0 10.65X,000 96 6/ Next Year's Dry Period Funning Requirements 1,200,00 1,310,HO 11565.000 1.230.000 2,033,000 2,033,006 4,089.000 4,009,000 el 69 FUND BALANCE DR (DEFICIT) 10,111,H0 6,256,0g0 501,000 1,154,000 (150,00) (150,00) 6,365,H0 6.365,000 48 ........... ........... ........... ........... ........... ........... ........... ....... SCHEDULE g COUNTY SANITATION DISTRICT NO. 5 12/9/87 $IRiENEXi OF P0.N[fi(D fPSX FLOW Page 1 FIBER( YFAR9 1987-88 THROUGH 1956-97 99-9J/ LINE - - N 9- 199b 6 92 S-Year total -97 ID-Year Iota- LINE ---- -- ---- -- --- ....... ----OPERATING FUND - -------------- I Reserves 6 tarry-Over From last Year 3,230,000 3,412,000 3,669,ON 3,957,ON 1,359,000 3,230.OND 6,BBS,No 4.230,00 1 ----------- ----------- ----------- ----------- ------..... ----------- ----------- ----------- REVENUE 2 Share of It To.Allocation 2.248,000 2,632.N0 3.081,000 3,607,000 4,224.000 15,791,00 14.133,000 50.S26,000 2 J Fees 34,00 36.000 37,000 39,000 41,BUD 187.000 240,000 421.000 3 9 let enit 1 Niscellaneous INome 2I5,ND 250,000 210,000 215,000 326,ON 1,378.ON 2,430.000 3,608,000 a S Other Rev... 0 0 5 ... .. ........... ._ ..... 6 TOTAL REVENUE 2,517,N0 2,918,"0 3.388,00 3,941.000 1,592,0N 17,456,00 37,405,001) 54.759,00 6 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---- ------ 7 TOTAL AVAILABLE FUNDING 5.747,00 6,330,000 7,037,00 7,898,N0 8,951,00 20,5116,0011 42,211 57'"g,0N 7 ----------- ----------- ----------- ----------- ----------- - ----------- ----------- ----------- EXPENDINRES 8 Share of Joint Works N 6 0 1,808,00 2,079,01M0 2,391,0N 2,750,0001 S,162,000 12,190.000 24,547.00 J6,737,000 B 9 Collection System A 6 0 and other Deer. 527,000 602,000 6B9,N0 789.00 904,00 3,511.000 6,974,00 10,485,N0 9 10 Other Er,"ilures 0 0 10 ........... ........... ........... ......... ----------- ----------- -------.--- 11 10141 EXPENDITURES 2.345.N0 2.&1 3,0N,ON 3,539.00 4.%&,M 15,701.ON 31,521,Fig 67,N2,0N 11 ----------- ----------- ----------- ----------- --- ------ ----------- ----------- ----------- 12 Re5erVe5 6 Carry-Over to Next Year 3,412,000 3,649,ND 3.957.00 4,359,ON 4,885,0N 4,88S,ON 10.167,00 10,761,000 12 13 Next Year's Dry Period Funding Requirements 1,168,000 1,361.00 1,540,ON 1,770,000 2,033,000 2,033,000 4,089,N0 4,089,"0 13 ........... ........... ........... ........... ........... -------- ----------- la Fund Balance or (Deficit) 2,246,001) 2,306,000 2.417,400 2,569,000 2,152,000 2,852,000 6,618,N0 6,678,000 la ........... .........:: ........... ........... ........... i CAPITAL YEMEN) ------ IS Reserves 6 tarry.over From last Year 9,927,000 9.453,00 11,860,000 5,076,000 5,613,ON 9,927,01)0 4.659.N0 9,921,01h0 IS ........... ........... ........... ........... .1......... ------------ ----------- ----------- REVENUE 16 construction grants 377,0N 02,00 694,00 894,ON 491,000 1,941,000 82,00 2.023,ON 16 17 Fen: Conneclioe N5,000 61013,AD, 017,N0 818'M 817,N0 10,210,ND a,NB,NO 16,298,ND 17 IB Other "S.0h, 710,000 763,N0 775,oN Boo,NO 3,701.00 3,070.00 7,571,0N IB 19 sale of Capacity Rights 223.00 42,00 30,000 6N,ON 22,0110 955,NO 99,00 1;054,000 19 20 Interest G Nuceilaneous Income 653.000 721,000 629,000 407,00 364,04)0 2,774,000 2,370.00 5.146,000 20 21 Other Incense 425,000 2,475,000 2,900,000 2.900,000 21 ..........- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 22 TOTAL REVENUE 3,228,g00 ID.Bos'GDo 2,721,N0 3,12N,N0 2,SOS,NO 22.481,000 10,509,000 32,990,000 22 ........... ........... ........... ........... ........... ........... ........... ........... 23 TOTAL AVAILABLE FURGING 13,155,ON0 19,396,000 16,%I,NO 9,000,0110 8,11B4O400 32,4N,NO 15,1N,NO 42,917,ON 23 ........... ........... ........... ........... ........... ........... ........... ........... EYPENOITORES 26 Share of Joint Works Treatment Plant 2,969,000 4,725,000 4,120,040 1,962,000 984,N0 14,760,000 2,39S,N0 11,155,0N 24 25 District Collection System 1152910" 2.6N,N0 41675,ND 1.425,"0 2,415,000 12,594,000 2,160,011) 14,754,ON 25 16 Re7NWr5ee9nt Agreement Payments 166,000 121,0N IIO,NO AIMED 395,N0 26 21 Other Ex4eNLteras 0 0 27 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 28 TOTAL EXPENDITURES 4,662.000 7.536.00 8,705,000 3,387,N0 3.459,000 27.749.000 4,555,00 32.304,00 28 ........... ........... ........... ........... ........... ........... ........... ........... 29 Reserves[ Carry-over to Next Year 6.493.000 11,860.000 5,076.000 5,613.000 4,6S9,000 4.659,N0 10,611.00 10,613,004) 29 ............ .......__. _....__.. ............ _..__..... ........... ..._..._. ........... SCHEDULE B ` COUNTY SMIIATIO DISTRICT 0. 5 12/9/82 STATEMENT OF PROJECTED CASH FLON Paee 2 FISCAL YEARS 1911-61 TERM 1996-9) 1992-93/ LINE 1981-88 IM-89 1919-90 IM-91 1991-92 5-Yea, INCH[ 1996-91 10 Year Total ..-- ....... ....... ....... ....... ....... ------------ ----------- -----------.- BOND fUNDIS) ------------ 30 Reserves B Carry-&,, Fla.Last lea, 29,040, 31,OW M,WO 25,000 0 29,000 0 29,00 30 ----- ----------- ----------- ----------- = ----------- ----------- REVENUE 31 lea at,, 22,00 21,041 21,000 66.0W 64,0W 31 32 Interest I N3seellermou5 lncole 2,000 2,00 2,000 LOBO 0 I'm 0 ),OW 32 33 Other Imo.. 0 33 ----------- ----------- ----------- ----------- ----------- - ----------- ----------- -- -------- 3N TOTAL REVENUE 24,0411 23,000 23,040 I'm 0 11,00 0 71.000 34 -------.... ----------- ----------- ----------- --------- - ----------- ----------- - --------- 35 TOTAL AVAILABLE FUNDING S3,W0 54,400 SI,WO 26,000 0 IW,WO 0 1W,00 35 ........... ........... ........... ........... ........... , ----------- ----------- -----.----. EXPENDITURES ------------ 36 Bond friraip.l I Interest 22,00 26,00 26,W0 26,000 IW,WO 10,W0 36 31 Other Eapendilores 31 ........... ........... ........... ........... ........... ........... ........... ........... 38 TOTAL EXPENDITURES 22,W0 26,W0 26,00 26,00 0 IW,WO 0 MOUNT IB ........... ........... -------I--- ..-........ ........... ----------- ----------- ------....- 39 Reserves A Carry-Over to NeXT Year 31,000 2R,00 25.00 0 0 0 0 0 39 40 Me sl Year's Dry Period Funding ReOuirueols 31,00 21,00) 25,00 0 0 0 0 0 40 ........... ........... ........... ........... ........... . ........... ........... ........... 41 Food Data.. or (Oefimt) 0 0 0 0 0 0 6 0 43 ..-....-.--. ............ ............ . ........... ........... ........... SLMMRY (Adjusted for IOlBPFHAd T,an9F.,N) 42 Reserves 1 C.r,,-N., G0.Last Year 13,IY,BW 11,936,0011 IS,sEr.w 9,8SI,WO 9,912,W0 I3,IM,000 9,561,000 13,16,W0 42 e3 TOTAL REVENUE 5,269,004 13,B14,00 6,132,00 1,066,000 7,091,00 39,90,00 11,912,0W 81,820,W0 63 ----------- ----------- ----------- ----------- ----------- - ----------- ----------- ----------- Ia TOTAL AVAILABLE FUNDING 18,955,00 25,100.00 21,659,000 16,924,00 17,064,000 ; 53,494,000 51,656,00 IOI,W6,00 la 45 TOTAL EXPENDITURES 1,019,0041 10,243,00D 11,111,0401 6,9S2,00 1,525,W0 43,59,00 k,016,00 79,626.00 45 ........... ........... ........... ........... ........... . ........... ........... ........... A6 Reserves A Carry-Over to Neel Year 11,9R,000 15,532,OW 91656,00 9,912.000 9,511,W0 ; 9,01,W0 2I.SNIU 0 21,30,00 AN al Neal Year's Dry period Funding R.,tr...PCs I,199,4W 1,369,400 I'sai'm 1,110,OW 2,033,000 ) 2,03,W0 4,00,000 4,09,00 11 ..... ........... ........... ....... , .. . . . . . . . . a8 FUND BALANCE DA (DEFICIT) 10,111,01)0 16,168,00 R,293.000 6.202A0 1,511,W0 1,S11.00 111291,0410 17.211.00 46 ........... ........... ........... ........... ........... . ........... ........... ........... • MEETING DATE Dec. )7, 1987 TIME 2:00 pm DISTRICTS 5 DISTRICT 1 JOINT BOARDS (EDGAR)........HOESTEREY..._ _ _ ( )...........ARNOLD...... (CRANK)........HANSON...... (PICKLER)..........BAY......... (YOUNG)........GRISET..... _ _ (MURPHY)...........BIGONGER...._ (ROTH).........STANTON..... _ _ (NORBY)............CATLIN......� _ (PLUMMER)..........COX......... DISTRICT 2 (PERRY)............CULVER...... (KENNEDY)..........EDGAR....... (WORRY)........CATLIN...... _ _ (NINCHELL).........ERSKINE..... (FLORA)........MAHONEY..... _ (MC CUNE)..........GRIFFIN..... (PICKLER)......BAY......... _ (YOUNG)........ GRISET...... (MURPHY).......BIGONGER...._ _ (CRANK)............HANSON...... (YOUNG)........GRISET...... _ (COX)..............HART........ (NELSON).......LEYTON...... _ (EDGAR)............HOESTEREY..._ (SCOTT)........NEAL........� _ _ (EDGAR)............KENNEDY..... _ (TYNES)........NEWTON...... _ _ (NELSON)...........LEYTON...... _ (CULVER).......PERRY.......� _ _ (FLORA)............MAHONEY.....� (FASBEN DER)....SILZEL......� _ _ (PLUMMER)..........MAURER...... _ (PEREZ)........SMITH....... _ _ (GREEN. P).........MAYS........ (ROTH).........STANTON..... _ _ (ABRAM)............MILLER. S..._ (BIGONGER).........MURPHY...... DISTRICT 3 (SCOTT)............MEAL........ (SUTTON)...........NELSON...... (HERMAN).......POLIS ......— _ _ (TYNES)............NEWTON...... (WEISHAUPT)....SAPIEN......— _ _ (CULVER)...........PERRY....... ( )........ARNOLO......— _ _ (HERMAN)...........POLIS.......� (PICHLER)......BAT........._ _ _ (STANTON)..........ROTH........ (NORBY)........CATLIN...... _ _ (WEISHAUPT)........SAPIEN...... (PERRY)........CULVER...... _ _ (WILES)............SIEFEN...... (WINCHELL).....ERSKINE....._ _ (PASSENGER)........SILZEL...... _ (MC CUME)......GRIFFIN..... _ (PEREZ)............SMITH....... (YOUNG)........GRISET...... _ (ROTH).............STANTON..... (FLORA)........14AHONEY....._ _ (NELSON)...........SUTTON...... (SCOTT)........NEAL........� _ (MILLER, D)........SWAN........ (SUTTON).......NELSON...... (BERNAL)...........SYLVIA...... (WILES)........SIEFEN...... (GREEN,H/JOMNSON)..WAHMER......� (ROTH).........STANTON..... (CLIFT)............WILSON......� (BERNAL).......SYLVIA......— (CLIFT)........WILSON......— DISTRICT 5 STRfF. SYLVESTER..._Z BROWN....... (COX)..........HART........ ANDERSON... (PLUMMER)......COX......... BUTLER...... (STANTON)......ROTH........ CLARKE...... CLAWSON..... DISTRICT 6 DAWES.......Z2!' DEBLIEUX...._ (JOHNSON)......WARNER......— — — HODGES...... (PLUM/ER)......MAURER......— — _ MOLL........ (STANTON)......ROTH........ KYLE....... LINDER...... DISTRICT 7 DOTER....... STREEO...... (KENNEDY)......EDGAR......._ — _ TALEBI...... (AGRAN)........MILLER. S...— _ _ VON LANGEN (PLUMMER)......COX.........— _ _ VINSON...... (YOUNG)........ORISET......_ (STANTON)......ROTH........ (PEREZ)........SMITH......._ (GREEN. N).....WAHNER......_ _ _ OTHERS: WOODRUFF...._ IDE......... DISTRICT 11 HOMEMER..... HOWARD...... (GREEN. P).....MAYS........_ _ _ HUNT........ (WINCMELL).....ERSKINE..... _ KEITH....... (ROTH).........STANTON:...._ _ KNOPF....... LINDSTROM..._ DISTRICT 13 LYNCH......._ STONE....... (BIGONGER).....MURPHY......_ _ _ YOUNG...... (PICKLER)......SAY........._ (STANTON)......ROTH........_ (PEREZ)........SMITH......._ (NELSON).......SUTTON......_ DISTRICT 14 (AGRAN)........MILLER, S..._ (MILLER, 0)....SWAN........_ (EDGAR)........KENNEDY..... (STANTON)......ROTH........_ (PEREZ)........SMITH......._ 12/10/87 F MEETING DATE Dec. 17, 1987 TIME 2:0O Tm• DISTRICTS 5 DISTRICT 1 JOINT BOARDS (EDGAR)........HOESTEREY..._ y _ ( )...........ARNOLD...... (CRANK)........HANSON...... (PICKLER)..........BAY......... (YOUNG)........GRISET...... _ _ (MURPHY)...........RIGONGER.... (ROTH).........STANTON....._ _ _ (HORSY)............CATLIN...... LJ (PLUMMER)..........COX......... DISTRICT 2 (PERRY)............CULVER...... (KENNEDY)..........EDGAR....... (NORBY)........CATLIN......_ _ _ (WINCHELL).........ERSKINE..... (FLORA)........MAHONEY..... (MC CUNE)..........GRIFFIN..... (PICKLER)......BAY........._ _ __ _ _ (YOUNG)............GRISET...... (MURPHY).......BIGONGER...._ _ _ (CRANK)............HANSON...... (YOUNG)........GRISET...... _ _ (Cox)... HART........ (NELSON).......LEYTON...... _ _ (EDGAR)............HOESTEREY... (SCOTT)........NEAL........ _ _ (EDGAR)............KENNEDY..... (TYNES)........NEWTON...... _ _ (NELSON)...........LEYTON...... (CULVER).......PERRY....... _ _ (FLORA)............"MONEY..... _ (FASBENDER)....SILZEL...... _ _ (PLUMMER)..........MAURER...... (PEREZ)........SMITH....... _ _ (GREEN. P).........MAYS........ (ROTH).........STANTON..... _ (AGRAN)............MILLER. S..._ (BIGONGER).........MURPHY...... DISTRICT 3 (SCOTT)............NEAL........ (SUTTON)...........NELSON...... (HERMAN).......POLIS ...... _ _ (TYMES)............NEWTON...... (WEISHAUPT)....SAPIEN......_ _ _ (CULVER)...........PERRY....... _ ( )........ARNOLD......_ _ _ (HERMAN)...........POLIS....... _ (PICKLER)......BAY........._ _ (STANTON)..........ROTH........ (NORBY)........CATLIN...... _ _ (WEISHAUPT)........SAPIEN...... (PERRY)........CULVER...... (WILES)............SIEFEN...... (WINCHELL).....ERSKINE..... _ _ (PASSENGER)........SILZEL...... (MC CUNE)......GRIFFIN..... _ _ (PEREZ)............SNITM....... _ (YOUNG)........GRISET...... _ _ (ROTH).............STANTON..... (FLORA)........14AHONEY....._ _ _ (NELSON)...........SUTTON...... (SCOTT)........NEAL........_ _ _ (MILLER. D)........SWAN........ (SUTTON).......NELSON......_ _ _ (BERNAL)...........SYLVIA...... (WILES)........5IEFEN......_ _ _ (OREEN.H/]OHNSON)..WAHNER......_ (ROTH). ......STANTON..... _ _ (CLIFT)............WILSON..... (BERNAL).......SYLVIA...... (CLIFT)........WILSON...... _ DISTRICT 5 STAFF: SYLVESTER... BROWN....... (COX)..........HART........ ✓ _ _ ANDERSON.... (PLU9ER)......Cox..........�Y,[� _ BUTLER......T (STANTON)......ROTH........! _ _ CLARKE......Z CLAWSON..... DISTRICT 6 DAWES....... OEBLIEUX...._ (JOHNSON)......WARNER...... _ _ HODGES...... (PLUMMER)......MAURER...... _ _ HULL........ (STANTON)......RON........ _ _ KYLE........ LINDER...... DISTRICT 7 OOTEN....... STREED...... (KENNEDY)......EDGAR....... _ _ TALESI...... (ABRAM)........MILLER. S... _ _ VON LANGER MN(PLUER)......COX........ _ _ _ VINSON...... (YOUNG)........GRISET......_ (STANTON)......ROTH........_ (PEREZ)........SMITH....... _ (GREEN. M).....WAHNER...... _ _ OTHERS: WOODRUFF.... IDE......... DISTRICT 11 HOHENER..... HOWARD...... (GREEN. P).....MAYS........_ HUNT........ (WINCHELL).....ERSKINE..... _ _ KEITH....... (ROTH).........STANTON....._ _ _ KNOPF....... LINDSTROM..._ DISTRICT 13 LYNCH....... STONE....... (BIGONGER).....MURPHY..... ._ _ _ YOUNG....... (PICKLER)......BAY........._ p I (STANTON)......ROTH........_ _ _ '7oN Uv^ N17 (PEREZ)........SMITH....... (NELSON).......SUTTON......_ _ _ Ij�,,,Py J /NAMISfalfo �! DISTRICT 16 (ABRAM)........MILLER. S..._ (MILLER. D)....SWAN........_ _ _ l.. (EDGAR)........KENNEDY..... _ _ (STANTON)......ROTH........_ (PEREZ)........SMITH......._ 12/10/87 COUNTY SANITATION DISTRICT NO. 5 OF ORANGE UNTY. CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING December 17, 1987 - 2:00 p.m. 10844 Ellis Avenue Fountain Valley, California Pursuant to adjournment of the regular meeting of December 9, 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 at the District's Administrative Office. The Chairman called the meeting to order at 2:00 p.m. In the absence of the Board Secretary, Rita J. Brown, Penny Kyle was appointed 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. and Don R. Roth DIRECTORS ABSENT: None STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager, Penny Kyle, Secretary pro tem, William H. Butler, Thomas M. Dawes, Dan Dillon OTHERS PRESENT: Thomas L. Woodruff, General Counsel , Bob Dixon, Bernard Maniscalco, Ronald Young Staff report on connection fee The Director of Finance reported that program for capital financing, and connection fees charged to new tlowncoast sewers a facility development are the primary source of p ann ng capital funds for the District. A portion of the annual supplemental user fee is also allocated for the capital facilities replacement program now underway in the District. Mr. Butler indicated that staff had recently completed a review of connection fees throughout the Districts based on an analysis of the historical costs of planning, designing and constructing facilities, both in the individual Districts' collection systems and in the joint works treatment and disposal facilities. The current cost of providing collection system and joint works capacity ranges from $1,485.00 to $1,688.00 per unit for single-family/multi-family units and from $297.00 to $337.00 per 1,000 square feet of commercial , industrial , governmental and other types of office facilities. He then reviewed the current connection fees in other Districts and the actions they have taken to increase their basic connection fees accordingly to cover the cost of providing capacity. �s.✓ Last year District 5 Directors modified their financial plan and adopted an ordinance increasing the basic connection fee with a phased-in schedule to provide additional capital funds, as follows: District 5 12/17/87 Single/Multi-Family Commercial/Industrial/ Zone Dwelling Units Governmental/Other 1 $ 500 per dwelling unit $ 260 per 1,000 sq. ft. of bldg. 2 1,100 per dwelling unit 570 per 1,000 sq. ft. of bldg. 3 1,500 per dwelling unit 2,400 per 1,000 sq. ft. of bldg. In addition, staff reported that they have recently completed an evaluation of the appropriate connection fee levels for District 5's share of the cost of expanding the joint works treatment facilities, as well as the District's collection system. Mr. Butler pointed out that their analysis indicated that the basic fee for new connections to pay the cost of the treatment facility expansion and the backbone master-planned collection system in Pacific Coast Highway should be consistent with the fees in the other Districts and should reflect the flow ratios prevalent in the other Districts, as follows: Single/Multi-Family Dwelling Units Commercial Facilities $1,500 per dwelling unit $300 per 1,000 sq. ft. The present connection fee schedules in Zones 2 and 3 reflect payback requirements under reimbursement agreements with developers which were approved by the Board in 1976 and 1981. Revenues from increases in the proposed basic fee will continue to be used.to pay back the outstanding funds owed by the District under the terms and conditions of these reimbursement agreements. With regard to the proposed Zone No. 3 (downcoast) development and sewerage service requirements, it was reported that for the past several years the District has maintained an ongoing dialogue with the Irvine Ranch Water District, the local sewering agency in the downcoast area, and The Irvine Company, the property owner, to identify the specific development levels and evaluate the cost of planning, designing and construction the master-planned trunk sewer facilities to serve this area. The Irvine Company recently received approval from the County Board of Supervisors and the California Coastal Commission to move forward with development in the downcoast area. As authorized by the Board, discussions were held relative to financing of the facilities necessary to serve the downcoast area. Staff reviewed a tentative plan that had been formulated which included two major elements, as follows: - IRWD will finance the full cost of all master-planned sewers in Zone No. 3 using existing general obligation bond authority. - IRWD and/or The Irvine Company will pay advance connection fees to District No. 5 for development now approved by the County and the Coastal Commission for construction in Zone No. 3. -2- District 5 12/17/87 v Staff reviewed the connection fees for Zone No. 3 recommended in the 1983 Master Plan Report which were based on a land use mix different from the currently-approved land use mix. The approved development plan calls for 3,400 residential units and 3,210,000 square feet of commercial facilities. It was pointed out that based on a connection fee of $1,500 per residential unit and $300 per 1,000 square feet of commercial development, the proposed development would generate upfront revenues of $6,063,000. The District's anticipated expenditures were also reviewed. The above-referenced tentative plan offers the District the opportunity to receive funds up front rather than on a sporadic basis as development occurs. The master-planned facilities required to support the downcoast area could then be designed and constructed in a timely fashion without the need for reimbursement agreements which require administration every year until the funds are fully repaid. Staff further reported on cash flow projections for the next ten years. If the current connection fees remain in place, the District would experience a deficit of $1,905,000 by the end of fiscal year 1989-90 and would continue to operate at a deficit over the next several years unless connection fees are increased or other revenue sources, such as debt financing, were employed to generate additional capital funds. The Board then discussed the following suggested proposals: 1. Approval of a District-wide basic connection fee of $1,500 per dwelling unit and $300 per 1,000 sq. ft. effective April 1, 1988, and elimination of separate zones. 2. Payment to District 5 on July 1, 1988 by IRWD/The Irvine Company of $6,063,000 in advance connection fees. 3. Provision for IRWD to fund $2,475,000 to construct master-planned sewerage facilties in Zone 3. Staff reported that if the above actions were implemented in the near future, the District would maintain a strong positive cash position in its capital fund and would have $10,613,000 in reserve at the end of the ten-year period. Directing staff to ne otiate an Moved, seconded and duly carried: an agreement with IRWD d or The Irvine ompany to provide advance That staff be, and is hereby, authorized fundln for sewers a facilities to and directed to negotiate an agreement serve the owncoast area for future with the Irvine Ranch Water District consideration by the Board (IRWD) and/or The Irvine Company (TIC) to provide the prepayment of connection fees and advance funding necessary in order to construct sewerage facilities to serve the downcoast area, and to present said negotiated agreement to the Board for their consideration at a future meeting. Directing staff to draft a revised Moved, seconded and duly carried: connection fee ordinance for first reading at the January 1 , 1 That staff be, and is hereby, authorized Joint Board Meeting and directed to draft a revised connection fee ordinance for first reading at the next regularly-scheduled Joint Board Meeting on January 13, 1988, to establish the following basic District-wide connection fees: -3- District 5 12/17/87 Single/Multi-Family Commercial/Industrial/ Dwelling Units Governmental/Other $1,500 per dwelling unit $300 per 1,000 sq. ft. 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 2:30 p.m. , December 17, 1987. Ll ecr tary p ten oard of Directors County Sani do ,strict No. 5 of Orange County, California -4- 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 AfAROHwAI.Yti. 1 7 , 1987 was duly posted for public inspection at the main lobby of the District' s offices on ZAAQg .VJ% 1O , 1987. IN (WWI�TNESS� WHEREOF, I have hereunto set my hand this 1 Q!�- day of , 1987. Rita Brown; Secretary of the Board of Directors of County Sanitation District No. of Orange County, California 1.d