HomeMy WebLinkAbout1989-05-31 District 5 1
COUNTY SANITATION DISTRICTS
" OF ORANGE COUNTY, CALJFORNIA
P.O.BOX 9127,FOUNTAIN VALLEY.CALIFORNIA 9272041V
109N ELLIS.FOUNTAIN VALLEY.CALIFORNIA 92108-7019
(1141 9 62-2411
NGF CW
FAX(711)9 82-0359
May 24, 1989
NOTICE OF ADJOURNED REGULAR MEETING
DISTRICT NO. 5
WEDNESDAY, MAY 31, 1989 - 5:30 P.M.
10844 Ellis Avenue
Fountain Valley, California
Pursuant to adjournment of the adjourned regular meeting of
May 17 , 1989 , the Board of Directors of County Sanitation
District No. s will meet in an adjourned meeting at the above
hour and date to consider modifications to the District's
supplemental user fee program.
Sec etary
BOARDS OF DIRECTORS
County Sanitation Districts P.O.Box 8127.10844 Ellis Avenue
of Orange County,California Fountain Valley,CA 92728.8127
`..� Telephone: (714) 962-2411
DISTRICT NO. 5
AGENDA
ADJOURNED REGULAR MEETING
WEDNESDAY, MAY 31, 1989 - 5 :30 P .M.
(1) Roll call
(2) Public Comments: All persons wishing to address the Board
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 ) verbal status report on the District's sewer rehabilitation
program and Master Plan of facilities to serve the District
(4) Consideration of items re long-range financial program:
(a) Staff report on financial projections
(b) Discussion
(5) Consideration of the following actions relative to proposed
Ordinance No. 519, An Ordinance of the Board of Directors of
County Sanitation District No. 5 of Orange County,
California, Amending Ordinance No. 516 Establishing Sanitary
Sewer Service Charges: See page "A"
(a) Report of the General Counsel re proposed Ordinance
No. 519
(b) Consideration of motion to read said Ordinance No. 519
by title only, and waive reading of entire ordinance
(must be adopted by unanimous vote of Directors
present)
(c) Consideration of motion to introduce said Ordinance
No. 519 and pass to second reading on June 14, 1989
( 6 ) Other business and communications, if any
(7) Consideration of motion to adjourn
ORDINANCE NO. 519
AN ORDINANCE OF THE BOARD OF DIRECTORS
OF COUNTY SANITATION DISTRICT NO. 5 OF
ORANGE COUNTY, CALIFORNIA AMENDING
ORDINANCE NO. 516 ESTABLISHING SANITARY
SEWER SERVICE CHARGES
The Board of Directors of County Sanitation District No. 5 of Orange County,
California, does hereby FIND:
A. That a financial and engineering report has been prepared setting forth
the financial projections for providing sewer service to properties within the
District; and,
B. That the financial and engineering reports have been made available to
the public in accordance with the provisions of Government Code Section 54992;
and,
C. That the new sewer use fees established by this Ordinance do not exceed
the estimated amount required to provide the sewer service for which the fee is
levied, as provided in Government Code Sections 54991 and 54992.
The Board of Directors of County Sanitation District No. 5 of Orange County,
California, does hereby ORDAIN:
Section 1: Table A, as adopted by Section 2 of Ordinance No. 516, is hereby
amended to read as set forth in Table A of this Ordinance.
Section 2: This Ordinance shall became effective July 1, 1989.
Section 3: The Secretary of the Board shall certify to the adoption of
this Ordinance and shall cause the same to be published in a newspaper of
general circulation in the District as required by law.
`.J
"A-1" AGENDA ITEM NO, 5 "A-1"
PASSED AND ADOPTED by the Board of Directors of County Sanitation District
No. 5 of Orange County, California, at a regular meeting held
Chairman of the Board of Dfrectors
County Sanitation District No. 5
of Orange County, California
ATTEST:
Secretary of the Board of Directors
County Sanitation District No. 5
of Orange County, California
`► -p-
"A-2" AGENDA ITEM NO. 5 "A-2"
`r
TABLE A
ORDINANCE NO. 519
Basis of Minimum Annual
Charge Annual Rate Charge Per Unit
Single-Family Charge per $45.00 $45.00
Dwellings dwelling unit
Multi-Family Charge per 27.00 27.00
Dwellings/Mobile dwelling unit
Homes
Commercial/ Charge per 1,000 32.00 32.00
Industrial/Other square feet of
(government building
buildings,
utilities,
non-profit
organizations,
etc.)
u
"A-3" AGENDA ITEM NO. 5 ,.A-3"
MANAGER'S AGENDA REPORT
County Sanitation Districts P.O. Box 8127. 10844 Ellis Avenue
of Orange County, California Fountain Valley,CA 92728-8127
Telephone: (714) 962-2411
--� DISTRICT NO. 9
MANAGER'S REPORT TO DISTRICT NO. 5 DIRECTORS
MEETING DATE: May 31, 1989 - 5:30 p.m.
Item No. 4(a): Update on long-range financial program and consideration of
amendments to existing sanitary sewer service charges.
BACKGROUND
In 1981, the Board adopted a supplemental user fee program to make up the
shortfall of ad valorem tax revenues and provide needed additional financing for
operations and major rehabilitation work on the sewer system. New development
pays a separate connection fee for sewage system capacity.
When the program was originally presented to the public and adopted by the Board,
it was anticipated that it would be necessary to increase the fees by
approximately 77% beginning with the second year to finance the rehabilitation
work on the trunk sewer system. The District has been able to delay any increase
in the supplemental user fees originally adopted in 1981 due to a significant
decline in inflation rates, receipt of favorable bids on various District and
joint works construction and rehabilitation projects, and delays In various
major plant projects, all of which have reduced District expenditures and cash
flow requirements well below budgeted levels.
In response to a State Water Resources Control Board ruling the Directors
ordered a change in the supplemental user fee program from a water meter size
basis to a flat fee for single and multi-family residences and fees based on
square footage of improvements for other facilities. This change was effective
for the 1987-88 fiscal year.
The current fee schedule is as follows:
Single-Family Multi-Family Commercial/Ind/
Fee Type Residential Residential Governmental/Other
One-time Connection $1,500 per $1,500 per $300 per 1,000 sq.
Fee dwelling unit dwelling unit ft. of building
Annual User Fee $26.40 per $15.85 per $18.90 per 1,000
dwelling unit dwelling unit sq. ft. of building
In 1986, the Board considered and rejected the issuance of Certificates of
Participation (COP's) in concert with other Districts to partially finance
District 5's share of ,joint treatment works construction.
-1-
e - .
May 31, 1989
FUTURE FINANCIAL PROJECTIONS \../
Based upon the Facilities Master Plan and the Financial Plan recommendations
contained in the 30-year Action Plan now under consideration by the Board,
District No. 1 will exhaust its capital funds as soon as 1990-91. The Action
Plan recommends that the District's share of the treatment plant construction
and the trunk sewer construction be financed by a combination of borrowing
(ie COP's) and increased connection fees. Debt retirement and escalating
operating and maintenance costs would be paid by increasing the annual
supplemental use fees. Staff has prepared a Statement of Projected Cash Flow
based on the following assumptions:
1. Scenario 2 of the Action Plan Which Recommends Continuation of Current
Treatment Levels 301 h Waiver
This scenario is used in the cash flows as the staff's preliminary preferred
alternative recommendation. It represents the minimum probable level of
construction and operations and maintenance costs. For the first five years
of the planning period the differences between Scenarios 2 and 3 (full
secondary treatment) are not significant. Additional flow and sewer
connection assumptions are also consistent with the Master Plan.
2. Connection Fees
The Master Plan Financial Plan recommends a change in the method of
determining connection fees. The recommended change, which is incorporated
in the cash flow, is to include the cost of future facilities on a per unit
basis. The reason to include these costs is that we currently operate at
capacity and any new flow will require new, additional capacity. The first
change is anticipated to be effective October 1, 1989 when the residential
connection fee is projected to be $2260 under Scenario 2.
Beginning July 1, 1990, and annually thereafter, connection fees are
projected to increase to reflect changes in the Engineering News Record -
LA construction cost index, assumed to be 5% per year.
3. Debt
Over the next 10 years COP-type debt totaling $42 million is projected to be
Issued to meet Joint Works Treatment and District sewer capital requirements
in 1990-91 and 1993-94. A more detailed needs analysis will be performed
and returned to the Directors before any debt is issued. The cash flow
projections are for several small issues on the theory of borrowing as
little as possible and only when absolutely necessary. All issues are
treated as fixed rate at 8% for 20 years.
The Health and Safety Code permits the use of user fees to repay debt, and
as the only controllable source of revenue for the District, they are
projected for use to repay the necessary new debt. Existing debt continues
to be repaid from capital funds.
-2-
May 31, 1989
RECOMMENDATIONS
It is clear that the user fee rates will have to continue to escalate - and at
an accelerated pace - to maintain the District's financial integrity. However,
there are several unknowns that will have a major impact on the District's cash
flow requirements.
A considerable portion of the District's major funding shortfalls are for
capital financing. The projections herein assume that all construction projects
proceed on schedule. Thus, the estimates can be considered "worst case"
scenarios. However, we continue to experience delays in major projects because
of SCApMO requirements. Further delays in these projects would also delay, or
at least spread out, the need for capital funds.
Conversely, as the Directors are aware, if the secondary treatment waiver is not
renewed in 1990, the Districts' capital needs will increase substantially. All
the projections assume the renewal of the Districts' 301(h) permit.
Ordinance No. 519 (attached to the agenda) incorporates the following proposed
fee schedule and is presented for consideration by the Directors.
Single-Family Multi-Family Commercial/Indust.
Fee Type Residential Residential Governmental/Other
Annual User Fee $45.00 $27.00 $32.00/1,000 sq. ft.
..s
No change In the connection fee schedule is recommended at this time. After a
final decision is made by the Boards regarding the NPDES Permit renewal , staff
will return with a connection fee recommendation.
Staff will review the attached cash flow projections, the proposed supplemental
user fee increase and the proposed Ordinance with the Directors in greater detail
at the meeting.
-3-
COUNTY
STATEMENT
NT OF
DISTRICT
CAS NO.
FL 5 Pap I9
STATEMFMT Of PROJECTED CASH FLOW page 1 �
FISCAL YEARS 1989-90 TXROU44 1998-99
LINE 1989-90 1990.91 1991.92 1992.93 1993.94 5-Year Total 1994-99 10-Year Total LIKE
.._. ....... ....... ....... ....... ....... ------------ ----------- ------------- _...
OPERATING FUND j
I Reserves 6 Carry-Over From Last Year 3.426,000 4.568,000 4.801,000 4,171,000 4.570,000 ; 3,426,000 5,835.000 3,426.000 1
........... ........... ........... ........... ........... j ._...._.. ----------- -----------
REVENUE
2 Share of It Tax Allocation 2,32S,000 2,520,000 2,730,000 2,958,000 3,205,000 ; 13,739,000 20,514.000 36,252,000 2
3 Fees: Industrial Waste IOI,aO 111,000 122,000 136,ISO 147,000 I 615,000 735.000 1,350.000 3 i'
6 Supplemental User 1,149,000 1,489,000 1,963,000 2.050,000 3,921,000 ; 11,380.000 28,092,000 40,272,000 6
5 Interest 6 Miscellaneous Income 283,000 332,000 318,aO 310,000 361,000 ; 1,584,000 2,130.000 3,714,000 5
6 Other Revenue j 0 0 6
........... ........... ........... ........... ........... ........... ........... ...........
7 TOTAL REVENUE 3,858.000 4,452,000 5,133,000 6,260,000 7,614,000 j 27,317,000 52,271.000 79,508,000 7
___________ ___________ ___________ ___________ ___________ i ----------- ----------- -___--.----
8 TOTAL AVAILABLE FUNDING 7.284,000 9,020,000 9,934,000 10,431,000 12,192,000 30,743,000 57,306,000 83,014,Oa 8 1
........... ........... ........... ........... ........... . ........... ..........'
EXPENDITURES t
9 Share of Joint Works N G 0 2.026.000 2.309,000 2,631.000 2,697.000 3,075.000 ( 12,738,000 23,199,000 35,937,000 9
10 Collection System M 6 0 and Other Door. 690.000 710.000 752,000 756.000 782.000 j 3,610,000 4,409,000 0,079,000 10
11 Other Expenditures 1,200,000 2,400,000 2,400,000 3,300,000 9,300,000 21,000,000 30,300,Oa 11
----------- ----------- ----------- ----------- ----------- j ----------- ----------- ---------
12 TOTAL EXPENDI7URES 2,716.000 4.219,000 5,763,000 5,833.000 7,1S7,000 25.708,000 48.608,000 74,316,000 12
___________ ___________ ___________ ___________ ___________ j ----------- ----------- .---------_ j
13 Reserves a Carry-Over to Next Year 4.568,000 4.601.000 4.171,000 4,578,000 5,055,000 ( 5,035,000 8,698,000 8,690,000 13 i
14 Next Yenr's Dry Period Funding Requirements 1,356,000 2.110,000 2,602,000 2,927,000 3,579,000 3,579,000 5.547,000 S,961,000 l6 !
1S Fund Balance or (Deficit) 3.210.000 2,691,000 1.289,000 1.651,000 1,436.000 ; 1,656,000 3,151,a0 3.151,000 15
Single Family Resident User Fee 145 ISO 176 8110 $150 $255
Number of Emuivalent Dxelling Units 25.518 25,672 25,826 25,980 26.136 26,906
COUNTY SANITATION DISTRICT NO. 5 5/25/89
STATEMENT OF PROJECTED CASH FLOW Page 2
FISCAL YEARS 1989-90 THROUGH 1990-99
LINE 1909-90 1990-91 1991.92 1992-93 1993-94 5-Year Total 1994-99 10-rear Total LINE
..-- ....... ....... ....... ....... ....... ------------ ----------- ------------- ----
CAPITAL FUND(S)
16 Reserves 6 Carry-over Fro, last Year 5,039.000 2,666,000 11.074,000 2,076,000 (471,000) 5,039,000 11,296,000 5,039,000 16
........... ........... ........... ........... ........... i ------------ ----------- -----------
REVENUE
17 Construction Grants 141,000 141,000 141,000 17
18 Fees: Cosmetics 606,000 719,000 754,000 190,000 830,000 ; 3,779,000 4,820,000 8,599,000 IB
19 Industrial Waste 15,000 17,000 19,000 21,000 23,000 95,000 115,000 210,000 19
20 Supplemental User 0 0 20
21 Sale Of Capacity Rights 240,000 118,000 21,000 832,000 233,000 1,444,000 275,000 1,719,000 21
22 Interest 6 Miscellaneous Income 273,000 487.000 466.000 57,000 384,000 ; 1,667,000 2,120.000 3,787,000 22
23 Other Income 3,757.000 24,000,000 18,000,000 1 45,757,040 45,757,000 23
----------- ----------- ----------- ----------- ----------- i ........... ----------- -----------
24 TOTAL REVENUE 'S,112,000 25,341,000 1,260,000 1,700,000 19,470,000 ( $2,083,000 7,330,000 60,213,000 24
........... ........... ........... ........... ........... i ----------- ----------- ----------.
25 TOTAL AVAILABLE FUNDING 10,151,000 28,007,000 12,334,000 3,776,000 18,999,000 $7,922.000 18.626,000 65,252,000 25
----------- ----------- ----------- ----------- ----------- - ----------- ----------- -----------
EXPENDITURES
26 Share Of Joint Works Treatment Plant 5.260,000 7,300.OUR 6,3/3,000 . 3,972,000 2,829,000 25.751,000 12,803,000 36.554,000 26
27 District Collection System 2,225.000 5.625.000 3,875,000 275,000 1,875,000 13,075,000 3,475,000 11,SSO,000 27
28 Rei,6ursement Agreement Payments 0 0 20
29 Other Expenditures 4,000,000 3,000.000 7,000,000 71000,000 29
----------- ......._.. ----------- ........... ........... ----------. --------'-- --------..-
30 TOTAL EXPENDITURES 7,485.000 16,933,000 10,259,000 4,247,000 7,703.000 46.626,000 16,278,000 62,9D4,000 30
........... ........... ........... ........... ........... . ........... ........... ...........
31 Reserves 6 Carry-over to Next Year 2,666,000 11.074,000 2,076,000 (471,000) 11,296,000 11,296.000 2.345.000 2,348,000 31
Single FaailY Resident Connection Fee $2,260 $2,340 $2,490 $2,610 82,740 $3,500
COUNTY SANITATION DISTRICT NO, 5 5/25/89
STATEMENT Of PROJECTED CASH FLOW Page 3
FISCAL YEARS 1989-10 THROUGH 1998.99
LINE 1989.90 1990-91 1991.92 I992.93 1993.14 5-Year Total L914.99 10-Year Total LINE
____ .......
BOND FUND(3) j
_-_--______ ,
32 Reserves 6 Carry-over From last Year 28,000 25,000 0 0 0 24,000 0 28,000 32
........... ........... ........... ........... ........... i ........... ----------- --------...
REVENUE
33 Tax Levy 21,000 i 21,000 21,000 33
34 Interest 6 miscellaneous Income 2,000 1,000 0 0 0 3,000 0 3,000 34
35 Other Income ) 0 35
........... ........... ......._.. ........... ........... i ........... ----------- . ...........
36 TOTAL REVENUE 23.000 1,000 0 0 0 24,000 0 24,000 36
........... ........... ........... ........... ........... i ........... ----------- ......-----
37 TOTAL AVAILABLE FUNDING 51,000 26,000 0 0 0 { 52,000 0 52,000 37
........... ........... ........... ........... ........... ( ........... -------- ...........
EXPENDITURES r
_--___--_- ,
7B Bond Principal 6 Interest 26,000 26,000 i 32,000 52,000 38
39 Other Expenditures 39
........... ........... ----------- ........... ........... ( ........... ----------- ......-----
40 TOTAL EXPENDITURES 26.000 26,000 0 0 0 52,000 0 52,000 40
........... ........... ........... ........... ........... i ----------- ........... -----------
41 Reserves 6 Carry-Over to Next Year 25,000 0 0 0 0 0 0 0 41
42 Next Year's Dry Period Funding Requirements 25.m 0 0 0 0 i 0 0 0 42
........... ........... ........... ........... ........... ( ----------- ........... -----------
43 Fund Balance or (Deficit) 0 0 0 0 0 0 0 0 43
SUMNARY (Adjusted for Inter-Fund Transfers) ,
4/ Reserves 6 Carry-01e1 From Last Year 8,493.000 7.259,000 15.375,000 6,247,000 4,107,000 8,493,000 16,331,000 8,493,000 44
45 TOTAL REVENUE 1.913,000 29,794.000 6,393,000 7,960,000 27,084,000 80,224,000 59,601,000 139,825,000 45
........... ........... ........... ........... ........... i ........... ----------- ...........
46 TOTAL AVAILABLE FUNDING 17,486,000 37,053,000 22,266,000 14.207,000 31,191.000 ( 80.717.000 75,932,000 140,318,000 46
47 TOTAL EXPENDITURES 10,227,000 21,178,000 16,021,000 10.100,000 14,860,000 ( 72,306,000 64,086,000 137,272,000 47
-'......... ........... ........... ........... ........... ........... -----------
48 Reserves 4 Carry-Over to Next Year 7,259.000 15,875.000 6,247,000 4,107,000 16,331.000 ; 16,331,000 11,046,000 11,046.000 IB
49 Next Years Dry Period funding Requirements 1.383,000 2.I10,000 2,BB2,000 2 927,000 3,579,000 ) 3,579,000 5.547,000 5,347,000 49
........... ........... ........... ........... ........... i ........... ----------- ...........
50 FUND BALANCE OR (DEFICIT) 5,876,000 13.765,000 3.365,000 1,180,000 12.752.000 12,7S2.000 5,499,0e0 5.4991000 50
COUNTY SANITATION DISTRICT NO.5 5/25189
SCHEDULE OF DISTRICT COLLECTION SISTER PROJECTS
PROJECT TOTAL i C.I.P. 1989-90 1990-91 1"1-92 1992-93 1993-94 ; 5-Year Total 1994-99 10-Year Total
.-........- ----------- i ----------- ----------- ----------- ----------- ----------- ----------- ------------ ----------- -------------
Coast Trunk Force Mains
Bitter Point Pump Station to
Newport Blvd., 5-31 (3) ( )v 150,000 ; 150,000 IS0,000 150,000
Bitter Point and Rocky Point Pump
Station Improvements, 5-32 (1) ( )v 250.000 250,000 250,000 250.000
'A' St., lath St., and Lido Pump
Station Improvements (2) ( ) 400,000 0 /00,000 400,000
Rehabilitate Balboa Peninsula Trunk,
Lido Pump to 'A' Street, 5-27-1 (3) ( ) 50,000 ; 50.000 50,000 50,000
Improvements to Bay Bridge
Pump Station, 5-33 (3) ( 1 1,600,000 800,000 000,000 I 1,600,000 1,600.000
Niscellane0us Projects 1 ) 500,000 50,000 50,000 50,000 50,000 50,000 250,000 250.000 500,000
----------- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Sub-total ACO Fund 2,950,000 0 1,050,OOD 1,100,000 50,000 50,000 50,000 ; 2,300,000 650,000 2,950,000
----------- i ----------- ----------- ----------- ----------- ----------- ----------- i ----------- ----------- -----------
Improvements to Bayside Drive
Trunk Sever, 5-34-1,2,3 (3) 1 4,800,000 500,000 2,000,000 2,300,000 4.800.000 4,800,000
Nest Coast Highmay Gravity
Trunk Rehabilitation ( ) 3,200,000 200,000 1,800.000 2,000,000 1.200,000 3,200,000
Big Canyon Trunk Rehabilitation ( ) 1,500,000 0 1,500,000 1.500,000
South Coast Trunk Sever, Corona Del Bar P.S.
to Crystal Cove P.S., 5-35 ( )va 3,600,000 600,000 2,000,000 1,000,000 3,600,000 3.600.000
Crystal Cove Pump Station, 5-36 (3) ( )vv 1,050,000 50,000 500,000 500,000 ; 1,050,000 1,050,000
Miscellaneous Projects (a) 250,000 25,000 25,000 25.000 25,000 25,000 ; 125,000 125,000 250,000
----------- - ----------- ----------- ----------- ----------- ----------- ----------- --------- ----------- -----------
Subtotal FR Fund 14,400,000 ; 0 1,175.000 4.525,000 3,825,000 225,000 1,825,000 ; 11,575,000 2,025,000 14,400,000
----------- ---------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
GRAND TOTAL 11,350,000 0 2,225.000 5,625,000 3,875,000 275,000 1,875.000 13.375,000 3,475.000 17,350,000
MEETING DATE MaY 31, 1989 TIME 5:30 PM DISTRICTS 5
DISTRICT I JOINT BOARDS
(CRANK)........HA14SON...... (VERELLEN).........ALLEN.......
(YOUNG)........ORI5ET.... .. (ERSKINE)........ ..BANNISTER..._
(KENNEDY)......HOESTEREY..._ _ _ (WEDAA).......... ..BI CONGER.... _
(ROTH)....•....STANTON....._ (NORBYI............CA7LIN......_ _
_ _
(HART).............COX.........
DISTRICT 2 (PERRY)............CULVER......
(KENNEDY)..........EDGAR.......
_
(NONBV)........CAfLIN......_ _ (CHESSEN)..........GRIFFIN..... _(GRAHAM).......MAHONEY....._ _ _ (YOUNG)............GRISET......
(WEDAA)........BIGONGER.... (CRANK)............HANSON......
(YOUNG)........GRISET...... _ _ (KENNEDY)..........NO TEREY..._ _
(NELSON).......ISLES....... (NELSON)...........ISLES....... _
(SCOTT)........NEAL........_ _ _ ( )............KAREL......._
_
(DOWNEY).......NEWTON......_ _ _ (EDGAR)............KENNEDY.....
(CULVER).......PERRY....... (GRAHAM)...........MAHONEY..... _
(HUNTER).......PICKLER....._ (SILVA)............MAYS........
(FASBENDER I....5 ILIEL......_ _ _ (SCOTT)............NEAL........ _
(BARRERA)......SMITH......._ _ _ (WEDIN)............NEL S ON......
(ROTH).........STANTON....._ _ _ (DOWNEY)...........NEWTON......
(CULVER)...........PERRY.......
DISTRICT 3 (HUNTER)......... ..PICKLER..... _
(HART).............PLUMMER..... _
(DUKE).........POLIS ...... (DUKE).............POLIS.......
(WEDIN)........NELSON......_ (STANTON)..........ROTH........
(VERELLEN).....ALLEN....... (AGRAN)............SHERIDAN....
(ERSKINE)......BANNISTER..._ (WILES)............SIEFEN...... _
(NONBY)........CATLIN...... (FASBENDER)........SILIEL......
(PERRY)........CULVER......_ _ _ (BARRERA)..........SMITH.......
(CHESSEN)......GRIFFIN..... (ROTH)............ .STANTON.....
(YOUNG)........GRISET...... (HART/COX)........ .STRAUSS.....
( )........KANEL....... (MILLER)...........SWAN........
(GRAHAM).......MAHONEY....._ (WAHLSTROM)........SYLVIA......
(SCOTT)........NEAL........_ _ _ (GREEN)............WANNER......
(HUNTER).......PICKLER....._ _ _ (BIGONGER).........WEDAA.......
(WILES)........SIEFEN...... (ISLES)......... ...WEDIN.......
(ROTH).........STANTO...... (HUNT).............WILSON.... ..
(WAHLSTROM)....SYLVIA...... (BANNISTER)........WINCXELL...._
(HUNT).........WILSON......
DISTRICT 5 STAFF:
BROWNER.......
(HART)......... 4400"......A� BROWN......._
(STANTON)......ROTH.9......� _ _ CLARKE ON...._
(STANTON)......ROiX.. .....J�_ CLAWSO .....
CLAW SON.....
DISTRICT 6 DAWES......._
- - HODGES IA...._
(GAEEN)........WAHPLUMMERER ....._ KYLE........
(HART).........ROTH........_ KYLE........
(STANi0N)......ROTH........_ CINDER......
OOTEN.......
DISTRICT 7 VON VON LARGER
(BARRERA)......SMITH......._ _ _ WINSOR......
(KENNEDY;......EDGAR.......-
(YOUNG)........GRISET......
_
(STANTON)......ROTH........
(AGRAN)........SHERIDAN...._
(COX)..........STRAUSS....._ _
(GREEN)........WANNER......_ _ _
OTHERS: WDOORUFF....✓
D15iRICr 11 I .........
ANWANWAH.......
(511-YA)........MAYS........_ _ _ DEMIR.......
(BANK IS FER)....WINCHELL...._ FLEMING.....
(ROTH).........STANTON....._ _ _ HOHENER.....
HOUGH.......
DISTRICT 13 HOWARD......
HUNT........
(BIGONGER).....WEDAA....... KNOPF.......
(HUNTER).......PICKLER..... LINDSTROM..._
(STANTON)......ROTH........ LYNCH.......
(BARRERA)......SMITH......._ _ _ STONE.......
I I SLES)........WEDIN....... WASON.......
YOUNG.......
;J DISTRICT 14
(MILLER).......SWAN........_
(EDGAR)........KENNEDY....._ _ _
(STANTON)......ROTH........
(AGRAN)........SHERIDAN....
(BARRERA)......SMITH......._ _
05/11/89
COUNTY SANITATION DISTRICT NO. 5
F ORANGE COUNTY, CALIFORNIA
MINUTES OF ADJOURNED REGULAR MEETING
May 31, 1989 - 5:30 p.m.
10844 Ellis Avenue
Fountain Valley, California
Pursuant to adjournment of the adjourned regular meeting of May 17, 1989, 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.
The Chairman called the meeting to order at 5:35 p.m. The roll was called and the
Secretary reported a quorum present.
DIRECTORS PRESENT: John C. Cox, Jr. , Chairman, Evelyn Hart,
Don R. Roth
DIRECTORS ABSENT: None
STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager,
Rita J. Brown, Secretary, Thomas M. Dawes
and Gary G. Streed
OTHERS PRESENT: Thomas L. Woodruff, General Counsel
Status Re ort on Dtst ri ct's sewer The Director of Engineering reviewed the
rehabil tation program and Master status of the District's rehabilitation
Plan of facilities program and the master-planned
facilities included in the new
Collection, Treatment and Disposal Facilities Master Plan currently being
considered by the Directors as part of the Joint Districts' 30-year "Action Plan"
program. There have been multiple contracts completed over the past eight or nine
years and the Districts 5 and 6 dual force main in Pacific Coast Highway has been
completely rehabilitated. The new Master Plan has identified additional future
deficiencies with regard to the gravity sewer built in 1936 in Pacific Coast
Highway but replacement of the sewer is not planned for several years depending on
the District's financial resources.
Other upcoming major projects proposed in the Master Plan are improvements to the
Bay Bridge Pump Station and the Bayside Drive Trunk Sewer. Staff also noted that
it will be necessary to replace the sewer line beneath Big Canyon Golf Course in
approximately 10 years.
With regard to the downcoast area, Mr. Dawes reported that it will be necessary
to build a sewer and a pump station in accordance with the agreement previously
entered into with the Irvine Ranch Water District. They have prepaid the
required connection fees and the agreement provides for payment of 100% of the
cost for all of the facilities south of the existing City of Newport Beach limit.
The cost for the facilities will total approximately $4.5 million but this will
be borne entirely by Irvine Ranch Water District.
Several of the projects will be required in the late 1990' s and Mr. Dawes
reported that sewer system improvements over the next 10-year period would total
over $17 million.
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5/31/89
DISTRICT 5
Update on long-range financial The General Manager reported that
program and consideration of in 1981 District 5 was the first of the
amendments to existing sanitary Districts to implement a supplemental
sewer service charges user fee program to make up the
shortfall of ad valorem tax revenues and
provide needed additional financing for operations and major rehabilitation work
on the sewer system. New development pays a separate connection fee for sewage
system capacity.
He further advised that when the program was originally presented to the public
and adopted by the Board, it was anticipated that it would be necessary to
increase the fees by approximately 77% beginning with the second year to finance
the rehabilitation work on the trunk sewer system. The District has been able to
delay any increase in the supplemental user fees originally adopted in 1981 due
to a significant decline in inflation rates, receipt of favorable bids on various
District and joint works construction and rehabilitation projects, and delays in
various major plant projects, all of which have reduced District expenditures and
cash flow requirements well below originally anticipated levels.
In response to a State Water Resources Control Board ruling, the Directors
ordered a change in the supplemental user fee program from a water-meter-size
basis to a flat fee for single and multi-family residences, and fees for other
facilities based on square footage of improvements. This change was effective
for the 1987-88 fiscal year.
In 1986 the Board considered and rejected the issuance of Certificates of
Participation (COP's) In concert with other Districts to partially finance the
District's share of joint treatment works construction.
The Acting Director of Finance then reviewed the District's financial projections
for the next ten years. Based upon the Facilities' Master Plan and the Financial
Plan recommendations contained in the 30-year "Action Plan" now under
consideration by the Joint Boards, District No. 5 will exhaust its capital funds
as soon as 1990-91. The "Action Plan" recommends that the District's share of
the treatment plant construction and trunk sewer construction be financed by a
combination of borrowing (i .e. , COP's) and increased connection fees. Debt
retirement and escalating operating and maintenance costs would be paid by
annually increasing the supplemental user fees.
He noted that the user fee is projected to escalate at an accelerated pace to
maintain the District's financial integrity. However, there are several unknowns
that will have a major impact on the District' s cash flow requirements.
Staff reported that a considerable portion of the District' s major funding
shortfalls are for capital financing. Staff' s projections assume that all
construction projects proceed on schedule. Thus, the estimates can be considered
"worst case" scenarios. However, the Districts continue to experience delays in
major projects because of SCAQMD requirements. Further delays in these projects
would also delay, or at least spread out, the need for capital funds.
It was also pointed out that, conversely, as the Directors were aware, if the
secondary treatment waiver is not renewed in 1990, the Districts' capital needs
will increase substantially. All projections currently being submitted to the
Directors assume the renewal of the Districts' 301(h) waiver permit.
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5/31/89
DISTRICT 5
Mr. Streed then reviewed the current fee schedules of the District, as follows:
Single-Family Multi-Family Commercia/Industrial/
Fee Type Residential Residential Governmental/Other
One-time Connection $1,500 per $1,500 per $300 per 1,000 sq.
Fee dwelling unit dwelling unit ft. of building
Annual User Fee $26.40 per $15.85 per $18.90 per 1,000 sq.
dwelling unit dwelling unit ft. of building
The Acting Director of Finance explained the District' s cash flow projections
were based on several assumptions. Scenario 2 of the "Action Plan", which
recommends continuation of the current treatment levels under the 301(h) waiver,
is the staff's preliminary preferred alternative recommendation. It represents
the minimum probable level of construction, operation and maintenance costs. For
the first five years of the planning period, the differences between Scenarios 2
and 3 (full secondary treatment) would not be significant. Additional flow and
sewer connection assumptions are also consistent with the Master Plan.
With regard to connection fees, the Master Plan Financial Plan recommends a
change in the method of determining connection fees. The recommended change,
which Mr. Streed indicated was incorporated in the cash flow projections, is to
include the cost of future facilities on a per-unit basis. The reason for
including these costs is that the Districts currently operate near capacity and
any new flaw will require additional facilities. He reported that no change in
the connection fee schedule was recommended at this time. After a final decision
is made by the Boards regarding the NPDES Permit renewal , staff would be
presenting their recommendations to the Board relative to increasing the
connection fees, probably to take effect October 1, 1989, when the residential
connection fee is projected to be $2,260 under Scenario 2.
Mr. Streed reported further that over the next 10 years COP-type borrowing
totaling $42 million is projected to be needed to meet joint works treatment and
District sewer capital requirements. The first issue is projected for 1990. He
indicated that a more detailed analysis would be performed and presented to the
Directors before any debt is issued. The cash flaw projections are for several
small issues on the theory of borrowing as little as possible and only when
absolutely necessary. All issues are assumed to be at a fixed rate of 8% for 20
years.
It was pointed out that the Health and Safety Code permits user fees to repay
debt; and as the only controllable source of revenue for the District, they are
projected for use to repay the necessary new debt.
The Board then entered into a discussion of the possible increases in user fees
based on different assumptions, including Scenario 3 requiring full secondary
treatment, and the financing alternatives. Staff indicated that the biggest
increase under a full secondary treatment scenario would be required around the
turn of the century and again when the treatment facilities would first come on
line in the year 2005. At this time, it is estimated that the user fees would
increase by an additional $50-75 per year.
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DISTRICT 5
The General Manager then reviewed the draft ordinance included with the agenda
material which increases the supplemental user fees, as follows:
Single-Family Multi-Family Comnercia/Industrial/
Fee Type Residential Residential Governmental/Other
Annual User Fee $45.00 per $27.00 per $32.00 per 1,000 sq.
dwelling unit dwelling unit ft. of building
Actions re proposed Ordinance
No. 51
First readin of proposed Moved, seconded and duly carried:
rdinan ce No. 519
That proposed Ordinance No. 519, An
Ordinance of the Board of Directors of County Sanitation District No. 5 of
Orange County, California, Amending Ordinance No. 516 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.
Following the reading of Ordinance No. 519 by title only, it was moved,
seconded and duly carried:
That Ordinance No. 519, An Ordinance of the Board of Directors of County
Sanitation District No. 5 of Orange County, California, Amending Ordinance
No. 516 Establishing Sanitary Sewer Service Charges, be introduced and passed
to second reading on June 14, 1989, at 7:30 p.m. , at the Districts' �../
administrative office.
Makin PNip that adoption of Following a verbal report by the
Ordinance No. 519 s categorically General Counsel , it was moved,
exempt per CEQA Guidelines seconded and duly carried:
That the Board of Directors hereby finds that adoption of Ordinance No. 519
is categorically exempt per California Environmental Quality Act (CEQA)
Guidelines Section 15273, in that the Ordinance establishes fees for
operation and maintenance expenses of the District.
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 6:08 p.m. ,
May 31, 1989. .
Secretary, boary of Directors
County Sanitation District No. 5 of
Orange County, California
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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. s held on a \ 19_" was
duly posted for public inspection at the main lobby of the
District' s offices on 19e9.
IN WITTNNE��.SS""" WHEREOF, I have hereunto set my hand this e1le�
day of 19fl.
Rita J. Brown, Secretary of the
Board of Directors of County
Sanitation District NO. S
of Orange County, California