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