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HomeMy WebLinkAbout1989-06-07 ��. COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA P.O. BOX 8127, FOUNTAIN VALLEY,CALIFORNIA 92728-8127 W a,n 10844 ELLIS. FOUNTAIN VALLEY,CALIFORNIA 92708-7018 (714)962-2411 FAX(714)962-0350 May 31 , 1989 NOTICE OF ADJOURNED REGULAR MEETING DISTRICT NO. 11 WEDNESDAY, JUNE 7, 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. 11 will meet in an adjourned meeting at the above hour and date to consider modifications to the District's supplemental user fee program. Secretary BOARDS OF DIRECTORS County Sanitation Districts P.O. Box E127. 1 D844 Ellis Avenue of Orange County,Calitomta Fountain Valley,CA 9272"127 Telephone:(744)962-2411 DISTRICT NO. 11 AGENDA ADJOURNED REGULAR MEETING WEDNESDAY, JUNE 7, 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. �.J ( 3) Consideration of items re long-range financial program: (a) Staff report on long-range financial plan (b) Discussion (4) Consideration of the following actions on items relative to proposed Ordinance No. 1109, An Ordinance of the Board of Directors of County Sanitation District No. 11 of Orange County, California, Amending Ordinance No. 1108 Establishing Sanitary Sewer Service Charges: See page "A" (a) Report of the General Counsel re proposed Ordinance No. 1109 (b) Consideration of motion to read said Ordinance No. 1109 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. 1109 and pass to second reading on June 14, 1989 (5) Consideration of the following actions relative to the Professional Services Agreement with John Carollo Engineers for preparation of Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17 : (a) Consideration of motion to receive and file Staff Report dated May 31, 1989 re selection of engineering consultant for preparation of said report. See page "B" (b) verbal staff report (c) Consideration of Resolution No. 89-50-11, approving said agreement with John Carollo Engineers for said services, on an hourly-rate basis for labor plus overhead, plus fixed profit, for a total amount not to exceed $44,738.00 See page "C" (6) Other business and communications, if any (7) Consideration of motion to adjourn -2 ORDINANCE NO. 1109 AN ORDINANCE OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 11 OF ORANGE COUNTY, CALIFORNIA AMENDING ORDINANCE NO. 1108 ESTABLISHING SANITARY SEWER SERVICE CHARGES The Board of Directors of County Sanitation District No. 11 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. 11 of Orange County, California, does hereby ORDAIN: Section 1: Table A. as adopted by Section 2 of Ordinance No. 1108, is hereby amended to read as set forth in Table A of this Ordinance. Section 2: This Ordinance shall become 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. "A-1" AGENDA ITEM #4 "A-1" .,� PASSED AND ADOPTED by the Board of Directors of County Sanitation District No. 11 of Orange County, California, at a regular meeting held Chairman of the Board of Directors County Sanitation District No. 11 of Orange County, California ATTEST: Secretary of the Board of Directors County Sanitation District No. 11 of Orange County, California "A-2" AGENDA ITEM #4 "A-2" TABLE A r./ ORDINANCE N0. 1109 Basis of Minimum Annual Charge Annual Rate Charge Per Unit Single-Family Charge per $40.00 $40.00 Dwellings dwelling unit Multi-Family Charge per 24.00 24.00 Dwellings/Mobile dwelling unit Hanes Comnercial/ Charge per 1,000 29.00 29.00 Industrial/Other square feet of (government building buildings, utilities, non-profit organizations, etc.) "A-3" AGENDA ITEM #4 "A-3" COUNTY SANITATION DISTRICTS of ORANGE COUNTY, CAUFORNIA May 31, 1989 109AA Euls AVENUE 00.8o%8127 FOUNTAIN VALLEY.CAUF00NIA 92728-8127 0141962-2A11 STAFF REPORT Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17 District 11 basically includes two distinct service areas: the southeasterly portion bounded by Garfield Avenue, Newland Avenue and Atlanta Avenue to the Santa Ana River; and the northwesterly portion, generally bounded by the areas north of Talbert Avenue to the 405 Freeway and west of Gothard Street to the coast except for the Naval Weapons Station at Bolsa Chica (see attached map) . The areas include approximately two-thirds of the City of Huntington Beach. The northwesterly portion is served by the Slater Avenue Pump Station, and trunk sewer lines in Golden West Street, Slater Avenue and Springdale Street. As the Directors will recall , the joint venture team of Carollo-Boyle has prepared a new master plan which includes both the joint treatment and disposal facilities, as well as the sewer conveyance systems for each of the sanitation districts. The consultants have found that Slater Avenue Pump Station and certain trunk sewer facilities will be deficient for meeting future short-term and long-term capacity requirements; the most notable deficiency being the Slater Avenue Pump Station. The long-term solution had been identified in previous master plan reports as the extension of the Coast Trunk Sewer from its present terminus at Golden West Street in Orange Avenue northwesterly through the Bolsa Chica area to Edwards Street at Slater Avenue. Under this plan a line extending easterly in Slater Avenue would relieve the Slater Avenue Pump Station, while a line extended north in Edwards Street would relieve the Springdale Street sewer collection facilities, all at an estimated cost of $21.9 million. The new master planning team reviewed this and other alternative ways to provide the needed sewer improvements. The alternatives included diverting a portion of the area tributary to the Slater Avenue Pump Station easterly to the Knott Interceptor, thereby reducing the quantity of flow through the Slater Avenue Pump Station at an estimated cost of $16.6 million; and rebuilding the Slater Avenue Pump Station at an estimated cost of $14.2 million. The latter is the most economical method. The Slater Avenue Pump Station is currently operating at or near capacity. With continuing development taking place within the drainage area served by the pump station, a project to correct the projected deficiencies is urgently needed. "B-1" AGENDA ITEM #5(a) "B-1" The pending Master Plan recommends that the Slater Avenue Pump Station be rebuilt at essentially the same location. It appears that the station could best be built adjacent to the existing station on lands now owned by General Telephone (GTE). Three phases of work for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17, are envisioned: Phase I includes preparation of a project report detailing the size and construction requirements of the pump station elevations and the trunk sewer improvements tributary to the station. The engineering documents will also provide the necessary data for acquisition of a site from GTE. Phase II will include preparation of detailed construction plans and specifications and an addendum to the professional services agreement will be negotiated and presented to the Directors for consideration at a later date. Phase III will be the actual construction of the facilities. In February, staff recommended that the Board proceed with the Phase I work for preliminary engineering work in advance of the Action Plan completion and certification in order to ensure that District 11 can continue to provide adequate sewer service. The Board authorized solicitation of proposals for the Phase I work. Proposals were solicited and received from John Carollo Engineers, Boyle Engineering Corporation, and Brown and Caldwell Consulting Engineers. Attached �..� is a summary of the proposals. Staff recommends approval of a professional services agreement with John Carollo Engineers for preparation of Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17, on an hourly-rate basis including labor plus overhead, and fixed profit, for an amount not to exceed $44,738.00. It is anticipated that engineering services for Phase II and Phase III will be negotiated upon completion of Phase I. This portion of the contract will be negotiated separately and presented to the Board for approval at that time. ENG/D11/17:SR2 -2- "B-2" AGENDA ITEM #5(a) ^B-2^ May 31, 1989 EVALUATION OF PROPOSALS Slater Avenue Pump Station Sewage System Improvements Contract No. 11-17 John Carollo Boyle Brown & Caldwell Engineers Engineering Consulting Engineers Did proposal address entire Scope of Work? Yes Yes Yes Does proposed project team appear to have appropriate experience? Yes Yes Yes Did proposal include: - Conflict of Interest disclaimer Yes Yes Yes - Copy of Errors and Omissions insurance policy No* No* Yes Total Estimated Manhours 756 1620 1656 - Professional (% of total ) 485 (64%) 1380 (85%) 1208 (73%) - Drafting/Typing 271 240 448 Average Total Labor Rate, $/Mr. 51.46 55.89 68.90 Overhead Percentage 153% 158.5% 175% Profit Percentage 13% 12.8% 11% Proposed Fee Breakdown - Engineering Services $38,903 $ 90,520 $114,100 - Fixed Fee $ 51835 $ 13,580 $ 14,650 - Other Costs -0- 2,000 4,250 Total Proposed Fee, (Not to Exceed) $44,738 $106,000 $133,000 RANKING (1) (2) (3) On file with CSDOC for other projects. "B-3" AGENDA ITEM #5(a) "B-3" w. i _. 1' .✓� wa -- --- rlrllJ 1111)ll 'Urll11 ,F 1 14:V la Y 21 r 7 . EDINGER PS INCR. 33 '- 12" r CAP TO 7.5 MGD 24 27-' L 1 r s1r �7R IAI1l111L1 lurtr �ul}r1N[_J.z-1 : -- .1 " r2y sr SUTER P:�INCR. 3dl CAP 7O 28 MGD burn] a �111! I� i • a � f 1� hY r DISTRICT II BOL940MY .. .,. �:'':",':a.. EXISTING FACILITIES y •ri r.. .d.. EXISTING PUMP STATION �:t;. " �d i uuunnr. MILLER HOLDER TRUNK •': _. __ _ uuurrr... KNOTT INTERCEPTOR ~'C' ............ COAST- NEWLANO-DELAWARE SYSTEM \ •••.a- �• -y Q ............• SLATER-SPRINGDALE-EDINGER SYSTEM `•�,41 IMPROVEMENT FACILITIES REPLACEMENT FACILITY r.•.•.•r PARALLEL FACILITY DISTRICT NO. 11 NEW FACILITY IMPROVEMENT ALTERNATIVE *1 36" DIAMETER OF PIPE COUNTY SANITATION DISTRICTS OF ORANGE COUNTY MASTER PLAN REPORT FIGURE 11 - 1 RESOLUTION NO. 89-50-11 APPROVING PROFESSIONAL SERVICES AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR PHASE I PRELIMINARY PROJECT REPORT FOR SLATER AVENUE PUMP STATION SEWA E SYSTEM IMPROVEMENTS A RESOLUTION OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 11 OF ORANGE COUNTY, CALIFORNIA, APPROVING PROFESSIONAL SERVICES AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR PREPARATION OF PHASE I PRELIMINARY PROJECT REPORT FOR SLATER AVENUE PUMP STATION SEWAGE SYSTEM IMPROVEMENTS, CONTRACT NO. 11-17 * * k k k * k k * * k * k * * * The Board of Directors of County Sanitation District No. 11 of Orange County, California, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. That the certain Professional Services Agreement with John Carollo Engineers dated June 7, 1989, by and between County Sanitation District No. 11 of Orange County and John Carollo Engineers, for preparation of Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17, is hereby approved and accepted; and, Section 2. That payment for said services is hereby authorized in accordance with the provisions set forth in said agreement, as follows: Professional Services at hourly rates for labor plus overhead at 153%, not to exceed $38,903.00 Fixed Profit 5,835.00 TOTAL, not to exceed $44,738.00 Section 3. That the Chairman and Secretary of District No. 11 are hereby authorized and directed to execute said agreement in form approved by the General Counsel . PASSED AND ADOPTED at an adjourned regular meeting held June 7, 1989. „C„ AGENDA ITEM #5(c) "C" 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. 11 AGENDA ADJOURNED REGULAR MEETING WEDNESDAY, JUNE 7, 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 ) Consideration of items re long-range financial program: (a) Staff report on long-range financial plan (b) Discussion (4 ) Consideration of the following actions on items relative to proposed Ordinance No. 1109, An Ordinance of the Board of Directors of County Sanitation District No. 11 of Orange County, California, Amending Ordinance No. 1108 Establishing Sanitary Sewer Service Charges : See page "A" (a) Report of the General Counsel re proposed Ordinance No. 1109 (b) Consideration of motion to read said Ordinance No. 1109 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. 1109 and pass to second reading on June 14 , 1989 (5) Consideration of the following actions relative to the Professional Services Agreement with John Carollo Engineers for preparation of Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17 : (a) Consideration of motion to receive and file Staff Report dated May 31, 1989 re selection of engineering consultant for preparation of said report. See page "B" (b) Verbal staff report (c) Consideration of Resolution No. 89-50-11, approving said agreement with John Carollo Engineers for said services, on an hourly-rate basis for labor plus overhead, plus fixed profit, for a total amount not to exceed $44,738.00 See page "C" ( 6) Other business and communications, if any ( 7 ) Consideration of motion to adjourn �r� -2- ORDINANCE NO. 1109 AN ORDINANCE OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 11 OF ORANGE COUNTY, CALIFORNIA AMENDING ORDINANCE NO. 1108 ESTABLISHING SANITARY SEWER SERVICE CHARGES The Board of Directors of County Sanitation District No. 11 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, �..J 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. 11 of Orange County, California, does hereby ORDAIN: Section 1: Table A, as adopted by Section 2 of Ordinance No. 1108, is hereby amended to read as set forth in Table A of this Ordinance. Section 2: This Ordinance shall become 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. "A-1" AGENDA ITEM #4 "A-1" PASSED AND ADOPTED by the Board of Directors of County Sanitation District No. 11 of Orange County, California, at a regular meeting held Chairman of the Board of Directors County Sanitation District No. 11 of Orange County, California ATTEST: Secretary of the Board of Directors County Sanitation District No. 11 of Orange County, California "A-2" AGENDA ITEM #4 "A-2" TABLE A .. ORDINANCE NO. 1109 Basis of Minimum Annual Charge Annual Rate Charge Per Unit Single-Family Charge per $40.00 $40.00 Dwellings dwelling unit Multi-Family Charge per 24.00 24.00 Dwellings/Mobile dwelling unit Homes Commercial/ Charge per 1,000 29.00 29.00 Industrial/Other square feet of (government building buildings, utilities, non-profit organizations, etc.) "A-Y AGENDA ITEM #4 "A-3" COUNTY SANITATION DISTRICTS of ORANGE COUNTY. CALIFORNIA May 31, 1989 low ELL19 AVFNVE 40 Sox 9127 F TAM VALLEY,CALIfOPMA 92729.9127 014)%234H STAFF REPORT Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17 District 11 basically includes two distinct service areas: the southeasterly portion bounded by Garfield Avenue, Newland Avenue and Atlanta Avenue to the Santa Ana River; and the northwesterly portion, generally bounded by the areas north of Talbert Avenue to the 405 Freeway and west of Gothard Street to the coast except for the Naval Weapons Station at Bolsa Chica (see attached map). The areas include approximately two-thirds of the City of Huntington Beach. The northwesterly portion is served by the Slater Avenue Pump Station, and trunk sewer lines in Golden West Street, Slater Avenue and Springdale Street. As the Directors will recall , the joint venture team of Carollo-Boyle has prepared a new master plan which includes both the joint treatment and disposal facilities, �..� as well as the sewer conveyance systems for each of the sanitation districts. The consultants have found that Slater Avenue Pump Station and certain trunk sewer facilities will be deficient for meeting future short-term and long-term capacity requirements; the most notable deficiency being the Slater Avenue Pump Station. The long-term solution had been identified in previous master plan reports as the extension of the Coast Trunk Sewer from its present terminus at Golden West Street in Orange Avenue northwesterly through the Bolsa Chica area to Edwards Street at Slater Avenue. Under this plan a line extending easterly in Slater Avenue would relieve the Slater Avenue Pump Station, while a line extended north in Edwards Street would relieve the Springdale Street sewer collection facilities, all at an estimated cost of $21.9 million. . The new master planning team reviewed this and other alternative ways to provide the needed sewer improvements. The alternatives included diverting a portion of the area tributary to the Slater Avenue Pump Station easterly to the Knott Interceptor, thereby reducing the quantity of flow through the Slater Avenue Pump Station at an estimated cost of $16.6 million; and rebuilding the Slater Avenue Pump Station at an estimated cost of $14.2 million. The latter is the most economical method. The Slater Avenue Pump Station is currently operating at or near capacity. With continuing development taking place within the drainage area served by the pump station, a project to correct the projected deficiencies is urgently needed. "B-1" AGENDA ITEM #5(a) "$-1" The pending Master Plan recommends that the Slater Avenue Pump Station be rebuilt at essentially the same location. It appears that the station could best be built adjacent to the existing station on lands now owned by General Telephone (GTE). Three phases of work for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17, are envisioned: Phase I includes preparation of a project report detailing the size and cons uction requirements of the pump station elevations and the trunk sewer improvements tributary to the station. The engineering documents will also provide the necessary data for acquisition of a site from GTE. Phase II will include preparation of detailed construction plans and specifications and an addendum to the professional services agreement will be negotiated and presented to the Directors for consideration at a later date. Phase III will be the actual construction of the facilities. In February, staff recommended that the Board proceed with the Phase I work for preliminary engineering work in advance of the Action Plan completion and certification in order to ensure that District 11 can-continue to provide adequate sewer service. The Board authorized solicitation of proposals for the Phase I work. Proposals were solicited and received from John Carollo Engineers, Boyle Engineering Corporation, and Brown and Caldwell Consulting Engineers. Attached is a summary of the proposals. Staff recommends approval of a professional services agreement with Jahn Carollo Engineers for preparation of Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17, on an hourly-rate basis including labor plus overhead, and fixed profit, for an amount not to exceed $44,738.00. It is anticipated that engineering services for Phase II and Phase III will be negotiated upon completion of Phase I. This portion of the contract will be negotiated separately and presented to the Board for approval at that time. ENG/D11/17:SR2 -2- "B-2" AGENDA ITEM 95(a) ^B-2., May 31, 1989 EVALUATION OF PROPOSALS Slater Avenue Pump Station Sewage System Improvements Contract No. 11-17 John Carollo Boyle Brown 8 Caldwell Engineers Engineering Consulting Engineers Did proposal address entire Scope of Work? Yes Yes Yes Does proposed project team appear to have appropriate experience? Yes Yes Yes Did proposal include: - Conflict of Interest disclaimer Yes Yes Yes - Copy of Errors and Omissions insurance policy No* No* Yes Total Estimated Manhours 756 1620 1656 �..d - Professional (% of total) 485 (64%) 1380 (85%) 1208 (73%) - Drafting/Typing 271 240 448 Average Total Labor Rate, $/Hr. 51.46 55.89 68.90 Overhead Percentage 153% 158.5% 175% Profit Percentage 13% 12.8% 11% Proposed Fee Breakdown - Engineering Services $38,903 $ 90,520 $114,100 - Fixed Fee $ 5,835 $ 13,580 $ 14,650 - Other Costs -0- 2,000 4,250 Total Proposed Fee, (Not to Exceed) $44,738 $106,000 $133,000 RANKING (1) (2) (3) * On file with CSDOC for other projects. "B-3" AGENDA IT`_M #5(a) "B-3" ---- --- 10421 DIN PS INCR 33'i - 12' - CAP 7.5 MGD 2a 2T y '[ \ - SLATER P S INCR i- J•I a ,1 CAP TO 28 MGO LA A . DISTRICT I I BOUNDARY EXISTING FACILITIES ,K.,. - 4- 1 - EXISTING PUMP STATION 891111111159 MILLER HOLDER TRUNK Iuu u.O„ KNOTT MITERGEPTOR COAST- NEWLAND-DELAYMRE SYSTEM •• ' _ '^ SLATER-SPRINGDALE-EDINGER SYSTEM • ''�,C IMPROVEMENT FACILITIES REPLACEMENT FACILITY • ,, PARALLEL FACILITY DISTRICT NO. 11 NEW FACILITY IMPROVEMENT ALTERNATIVE *1 36" DIAMETER OF PIPE COUNTY SANITATION DISTRICTS OF ORANGE COUNTY � MASTER PLAN REPORT FIGURE 11 - 1 RESOLUTION NO. 89-50-11 `,✓ APPROVING PROFESSIONAL SERVICES AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR PHASE I PRELIMINARY PROJECT REPORT FOR SLATER AVENUE PUMP STATION SEWAGE SYSTEM IMPROVEMENTS A RESOLUTION OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 11 OF ORANGE COUNTY, CALIFORNIA, APPROVING PROFESSIONAL SERVICES AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR PREPARATION OF PHASE I PRELIMINARY PROJECT REPORT FOR SLATER AVENUE PUMP STATION SEWAGE SYSTEM IMPROVEMENTS, CONTRACT NO. I1-17 x x x x x x x x x z z x z x z z The Board of Directors of County Sanitation District No. 11 of Orange County, California, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. That the certain Professional Services Agreement with John Carollo Engineers dated June 7, 1989, by and between County Sanitation District No. 11 of Orange County and John Carollo Engineers, for preparation of Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17, is hereby approved and accepted; and, Section 2. That payment for said services is hereby authorized in accordance with the provisions set forth in said agreement, as follows: Professional Services at hourly rates for labor plus overhead at 153%, not to exceed $38,903.00 Fixed Profit 5,835.00 TOTAL, not to exceed $44,738.00 Section 3. That the Chairman and Secretary of District No. 11 are hereby authorized and directed to execute said agreement in form approved by the General Counsel. PASSED AND ADOPTED at an adjourned regular meeting held June 7, 1989. „C-- AGENDA ITEM #5(c) "C" MANAGER'S AGENDA REPORT County sanitation Districts P.O. Box 8127. 10844 Ellis Avenue of Orange County,California Fountain Valley,CA 9272MI 27 Telephone: (714)962-2411 DISTRICT NO. 31 MANAGER'S REPORT TO DISTRICT NO. 11 DIRECTORS MEETING DATE: June 7, 1989 - 5:30 p.m. Item No. 3(a): Update on Long-Range Financial Pro ram and Consideration of Amendments to Existing Sanitary 5iwir Service Charges. BACKGROUND In 1987 District No. 11 modified its long-range financial plan. This plan established a supplemental user fee to make up a shortfall in ad valorem tax revenues and provide the additional financing necessary for both operations and maintenance as well as major facilities rehabilitation. The financial plan was adopted after considerable study to avoid projected short and long-range funding shortfalls in revenues required to finance the District's operating and capital expenses, which are escalating due to the rising cost of meeting environmental and public health standards established by state and federal regulatory agencies. New development pays a separate connection fee for sewerage system capacity. The current fee schedule is as follows: Single-Family Multi-Family Commercial/Indust./ 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 $15.83 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 11's share of joint treatment works construction. FUTURE FINANCIAL PROJECTS 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. 11 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 maintenace costs would be paid by increasing the annual *-/ supplemental user fees. Staff has prepared a Statement of Projected Cash Flow based on the following assumptions: -1- J June 7, 1989 1. Scenario 2 of the Action Plan Which Recommends Continuation of Current Treatment Levels 01 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 near capacity and any new flow will required 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 $54 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. 4. Bolsa Chica Annexation It is assumed that the Bolsa Chica will annex to the District and that annexation fees in the amount of $3,020,000 will be received in 1989-90. If the annexation fees are not received in 1989-90, District No. 11 will probably have to accelerate its issuance of $30,000,000 in COP's from 1990-91 to 1989-90. We do not have sufficient information at this time on the projected development of the Bolsa Chica to estimate connection fee revenues from this area. Any connection fees received would partially reduce the projected $54,000,000 estimated COP' s over the next 10-year period. -2- June 7, 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 SCAQMD 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. 1109 (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 $40.00 per $24.00 per $29.00 per 1,000 dwelling unit dwelling unit sq. ft. of building 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. Item No. 5(a) : Actions re Professional Services Agreement with John Carollo Engineers re Phase I Preliminary Project Report for Slater Avenu Stat�ewe stem Improvements, Contract No. 11-17. In February the Directors authorized the Selection Committee to solicit proposals and negotiate a professional services agreement for the preparation of a preliminary project report for rebuilding the existing Slater Avenue Pump Station. To take advantage of the timing of this adjourned meeting, staff is recommending that the full Board consider the proposals and award of an engineering contract. Attached is a staff report which includes a summary of the .proposals. At the meeting staff will review the project and the proposals with the Directors in more detail . -3- June 7, 1989 The recommended action is the selection of an engineer for the Phase I Preliminary Project Report and approval of a professional services agreement with John Carollo Engineers in an amount not to exceed $44,738.00 for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17. A draft resolution approving the agreement is included with the supporting documents. -4- COUNTY SANITATION DISTRICT ND. 11 5/25/69 STATEMENT OF PROJECTED CASH FLOW Page I FISCAL-YEARS 1989-90 THROUGH 1996.99 LINE 1989-90 1990-91 1991.92 1992.93 1993.94 5-Year Total 1994-99 10-Year Total LINE -... ....... ....... ....... ....... ....... ----------- ------------- ---- OPERATING FUND -------------- 1 Reserves 6 Carry-Over From Last Year 2,656,000 3,561,000 4,181,000 4,682,000 6,821,000 ; 2.056,000 8,508,000 2,856,000 t ........... ........... .......4--- ----------- ----------- ----------- ----------- .-_.-.-._-. REVENUE 2 Share of It tax Allocation 2.141.000 2.312,000 2,497,000 2,696,000 2,911,000 12,557,000 18,444,000 31,901,000 2 3 Fees: Industrial Waste 227.000 250,000 275,000 303,000 353,000 1.388,000 2,235,000 3.623,000 3 4 .Supplemental User 1.851,000 3,498,000 5,168,000 6,626,000 7,629,000 24,772,000 46,322,000 71,094,000 4 5 Interest 6 Miscellaneous Income 227,000 274,000 314.000 400,000 543.000 1,766,000 2,900,000 4.746,000 5 6 Other Revenue 0 0 6 ........... ........... ........... ........... ........... , ----------- ----------- ........... 7 TOTAL REVENUE 4.446.000 6.334,000 8,254,000 10,033,000 11.416.000 40,483.000 69,981,000 110,464.000 7 ........... ........... ........... I.......... ----------- , ----------- ----------- ----------- 8 TRIAL AVAILABLE FUNDING 7,302,000 9,895,000 12,435,000 14.715.000 18,237,000 43,339,000 78,489,000 113,320.000 8 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ EXPENDITURES 9 Share of Joint Narks N 6 0 3,175,000 S,626,000 4,141,000 4,255,000 4,861.000 20.058.000 36,916,000 56,974,000 9 10 C0116CtIQA System H 6 0 and Other Oper. 566,000 580,000 612,000 639,000 660,000 3,075,000 3,890,000 6,963,000 10 11 Other Expenditures 1,500,000 3.000,000 3,000,000 4,200,000 ; 11,700,000 27,000,000 38,700,000 11 ........... ........... ........... ........... ........... ........... ........... ........... 12 TO1AL EXPENDITURES 31741,000 5,714.000 7,753,000 7,894,000 9,729.000 34,931,000 67,806,000 142,637,000 12 ........... ..........4 ----------- ----------- ----------- ----------- ----------- ----------- 13 Reserves 6 Carry-Over to Next Year 3,561.000 4.181,000 4,602,000 6,821.000 01508,000 0,508,000 10,693.000 10.683,000 13 14 Next Year's Dry Period Funding Requirements 1,871.000 2,857,000 3,177.000 3,947,000 4,865,000 4,865,000 8,170,000 8,170,000 14 ........... ........... ........... ........... ----------- ...-------- ----------- ----------- 15 Fund Balance or (Deficit) 1,690,000 1,324,000 805,000 2,874,000 3,643,000 ; 3,643,000 2,513,000 2,513,000 15 Single Family Resident User Fee 140 075 $110 1140 $160 t210 Number of Equivalent Deviling Units 46,267 46,633 46,979 47,325 47.671 49,401 COUNTY SANIIATIOR DISTRICT NO. 11 ( 5/2(_ STATEMENT OF PROJECTED CASH FLOW Page 2 FISCAL YEARS 1989-90 THROUGH 1998-99 LINE 1909-90 1990-91 1991-92 1992-93 1993-94 5-Year Total 1994-99 10-Year Total LINE _.__ ....... ....... ....... . ....... ....... � ------------ ----------- ------------- ---- CAPITAL TOURIST 16 Reserves 6 Carry-over From Last Year 4,482,000 907,000 16,732,000 6.613,000 3,470,000 4,602,000 16,861,000 4,482,000 16 ___________ ___________ ___________ ___________ ___________ ____________ ___________ ___________ REVENUE 17 Construction grants 190,000 190,000 190,000 17 18 Fees: Connection 783,000 421,000 062,000 90S,000 949,000 4,310,00 5,508,000 9,826,DOO 18 19 Industrial Baste 67,000 74,000 81,000 89,000 98.000 409,000 660,000 1,069,000 19 20 SuDpleaental User 0 0 20 21 Sale of Capacity Rights 324,000 159.000 29.000 11123,000 315,000 1,950,000 371.000 2,321,000 21 22 Interest 6 Hiscallane0us Income 194.000 628,000 06,000 428,000 721,000 2,869,000 3,695,000 6,564,000 22 23 Other Income 3,020,000 30,000,000 24,040,000 57,020.00 57.020,000 23 ___________ ___________ ___________ ___________ ___________ _ ___________ ___________ ______'--- 2X TOTAL REVENUE 4,578,000 31.662,000 1.870,000 2,543.000 26,003,000 66,7S6,000 10,234,000 76,99D,000 26 ........... ........... ........... ........... ........... . ........... ........... ........... 25 TOTAL AVAILABLE FUNDING 9.060.000 32,669,000 18,602,00 11,156,040 29,553,000 71,231,00 27,05,000 $1,472,000 25 ........... ........... ........... ........... ........... . ._-------- ----------- EXPENDITURES 26 Share of Joint Barks Treatment Plant 7,098,000 9,862,000 8,614,000 5,361,000 3,817,000 36,7S2,00 17,279,000 52,051,000 26 27 District Collection System 975,000 1,575,000 1,375,000 2,325,000 4,875,000 11,125,00 2,875,000 16,000,000 27 28 Reiabursement Agreements 0 0 28 29 Other Expenditures 4,500,000 4,000,000 8,500,000 8,500,000 29 ........... ........... ........... _._-_ ..... ----------- , ----------- ----------- ..--------- 30 T07AL EXPENDITURES 8.073,00 15,937.000 9,969,000 7,666,000 12,692,000 54,377,000 20,154,000 74,531,000 30 ........... ........... ........... ........... ........... ........... ........... ........... 31 Reserves 6 Carry-over to Next Year 907,B0 16.732,00 8.613,101 3.470,00 16,161,000 16,861.000 6,941,000 6,941,000 31 Single Family Resident Connection Fee $2.260 12,370 12,490 $2,610 82,70 13,500 Number of New Equivalent Dwelling Units 346 346 366 346 $ad 346 COUNTY SANITATION DISTRICT NO. 11 5/25189 STATEMENT OF PROJECTED CASH FLOW Page 3 FISCAL YEARS 1989.90 THROUGH 1990-99 LINE 1989-90 1990-91 1991-92 1992-93 1993-94 5-Year Total 1994-99 10-Year Total LINE ---- ------- ------- ------- ------- ------- ------------ ----------- ------------- ---- BOND FUND($) 32 Reserves 6 Carry-over From test Year 16,000 22,000 33,000 34,000 $5,000 16,000 37,000 16,000 32 ........... ........... ........... ........... ........... I ----------- ----------- ----------- REVENUE 33 Tax Levy 35,000 25,000 15,000 15,000 15,000 ; 105,000 39,000 166,000 33 36 Interest A HiSC9111ne099 Inceae 1,000 2,000 2,000 2,000 3.000 ; 10,000 1.000 11,BW 34 35 Other Income 0 SS ........... ........... ........... ........... ........... ( ----------- ----------- ........ 36 TOTAL REVENUE 36,000 27,000 17,000 17,000 18,000 IIS,000 40,000 15500" 36 ........... ........... ........... ........... ........... i ........... ----------- ----------- 37 TOTAL AVAILABLE FUNDING $2,000 69,000 50,000 51,000 53,000 131,000 77,000 171,000 37 ----------- ----------- ........... ----------- ----------- i ----------- ........... -----_.... EXPENDITURES SB lead Principal 6 Interest 30,000 16,000 16,000 16,000 16,000 94,000 77,000 171.000 30 39 Other Expenditures 39 .........."-'"...... ........... ........... ........... i ----------- -------•--- ........... 10 TOTAL EXPENDITURES 30,000 16.000 16,000 16,000 16,000 96,000 77,000 171,600 60 ...... ........... ........... ........... ........... ........... ........... ........... 41 Reserves 6 Carry-Over In Next Year 22,000 33,000 36,000 35,000 17.000 i 37,000 0 0 61 42 Next Year's Dry period Funding Requirements 12,000 33,000 36,000 35,000 37,090 I 37,000 0 0 42 ....... .. .. . .. i . . . ........ 43 Fund Balance Or (Deficit) 0 0 0 0 0 I 0 0 0 13 ........ ..... .......... SUMMARY (Adjusted for Inter-Fund Transfers) 46 Reserves a Carry-Over Free lest Year 1,354,000 4.570,000 20.946.000 13,329,000 10,326,900 7,354,000 25,406,000 7,354,000 46 45 TOTAL REVENUE 9,060,000 38,043,000 10,141,000 12,593,000 37,517,000 107,SS4,000 80,255.000 lel,609,000 0S ........... ........... ........... ........... ........... i ----------- -------.... -1......... e6 TOTAL AVAILABLE FUNDING 16,414.000 42,613,000 31,097,000 25,922,000 47,843,000 114,708,000 105,661.000 194,963.000 46 47 TOTAL EXPENDITURES 11,844,000 21,667,000 17,758,000 15,596,000 12,437,000 ; 89,302,000 88,037,000 177,339,000 17 ........... ........... ........... ........... ........... ........... ........... ........... NB Reserves 6 Carry-Over t0 Next Year 4,570,000 20,946,000 13,329,000 10.326.000 25,406,000 25,406,000 17,624,000 17,624.000 LB 49 Next Year's Dry Period Funding Requirements 1,093.000 2,890,000 3,911,000 3.982,000 4,902,000 4,902,000 8,170,000 0.170,000 49 ........... ........... ........... ........... ........... ........... .....I..... .........-- 50 FUND BALANCE OR (DEFICIT) 2,677,000 18.056,000 9,411.000 6,360,000 20,504,000 20,504,000 9,454,000 9,454,000 50 COUNTY SANITATION DISTRICT M0.11 5/25/89 SCHEDULE OF DISTRICT COLL III TOM SYSTEM PROJECTS PROJECT TOTAL C.I.P. 19B9-90 1990-91 1991-92 1992-93 1993-94 5-Year Total 1990-99 5-Year Total ..___._.... ----------- ----------- ----------- ----------- ----------- ----------- ----------- i ------------ ----------- .._._.------ Slater-Springdale Manhole Rehab. 300,000 300,000 300,000 300,000 Newland-Delaware Manhole Rehab. 300,000 ; 3001000 ; 300,000 300,000 Miscellaneous Projects ( ) 250,000 25,000 25,000 25,000 25,000 25,000 ; 125,000 125,000 250,000 Sub-total AID Fund 850,000 ; 0 25,000 25,000 25,000 325,000 325,000 ; 725,000 125,000 850.000 Slater Ave. Pump Station Replacement 3,400,000 900,000 1.500,000 11000,000 3,400,000 3,400,000 Slater Ave. Force Main 800,000 100,000 700.000 800,000 B00,000 Slater Ave. Relief 1,700,000 ! 200,000 1,000,000 5001000 1.700,000 1,700,000 0oldenwest Replacement 3,750,000 ; 250,000 3,500,000 ; 3,750,000 3,750,000 Neil Interceptor 500,000 500,000 500,000 500,000 Slater/Springdale Replacement 750,000 0 750,000 750,000 Warner Relief 1,500,000 0 1,500.000 1,500,000 Edinger Pump Station Improvements 250,000 ; 0 250,000 250,000 Miscellaneous Projects ( ) 500,000 50,000 50,000 50,000 50,000 50,000 250,000 250,000 500,000 Subtotal FR Fund 13,1S0,000 0 950.000 1,550,000 1,350,000 2,000,000 4,550,000 10,400,000 2,750,000 13,150,000 ORAMD T07AL 14,000,000 0 975,000 1,575,000 1,375,000 2,325,000 4,875,000 11.125,000 2,075,000 14,000,000 ........... ........... ........... ........... ..:-------- ......._.._ ........... ........... ........... ......----- MEETING DATE June 7, 1989 TIME 5:30 p.m DISTRICTS 11 DISTRICT l JOINT BOARDS (CRANK)........HA14SON......_ _ _ (v ERELLEN).........ALLEN....... (YOUNG)........GREET...... (ERSKINE)..........BANNISTER... (ROTH)DY)......STANTONHOET ...._ _ _ (NEDAA)............SIGONGERCATLIN...... (PART).............COL......... DISTRICT 2 (PENNY)............HUNTER...... (KEENED$).......... EDGAR ..... ( ....... A .....- - (CMESSE ..........GRIFFIN..... (GRAHAM).......MAHONEY..... (YOUNG)............GRISET (YN )........BIGONG ..... (CRANE)............HANSON...... (YOUNG)........ ...... (KEENED)).......... ENE.. . (NELSON).... ...ISLES....... (NELSON)........... ISLES....... (S[0TT)........PEAL........_ __ ( )............PANEL....... _ (DOWNEY).... ...NEWTON...... (EDGAR)............KENNEDY..... — (HUNTER).......PERRY......._ (SILVA)............MAHO ..... (FASTEN).......PICKLE ..... _ _ (SILT.)............MAYS.... .... (FASBENDE......SILZEL MITH......._ _ _ (SCOTT)............NEAL LSO........ (BATHER.)......SMITH......._ _ _ (DOWNEY)...........NELSON...... (ROTH).........STANTON.....- (DOWNER)...........NEWTON... ... (HUNTER)...........PERRY....... _ DISTRICT 3 (HT . ...........PER..... (HARARE))..............PLUMMNUMMEN....._ _ (DUDE).........POLLS ...... (DUKE).............POLIS (WEDIR)........NELSON...... _ _ (AGRAN)............ROTH........ (ERSKINE).... ..ALLEN......._ (AGRAN)............SHEHID AN...._ (ERSNIN....... .TANNIN TEN..._ _ _ (WILES)............SIEFEN...... (HERBY)........CALLER.. ...._ (FASBENDE..........SMITH....... _ (PEETS)..... ...CULVEN...... (BATHE.............SMITH....... _ (CMESSE........GRIFFI...... (ROTH).............STRAUSS..... _ (YOUOC)...... ..GRIiE i......— — — (HPNT/COL).........SiR.U55..... _ ( I........KANEL....... (MILLER)...........SYAN........ (GRAHAM).......MAHONEY..... (WAHLSTROM)........SYLVIA...... (SCOTT)........NEAL........ (GREEN)............HAMNER...... (HUNTER).... ...PICKLER..... (SIGONGER).........WEDAA....... _ (WILES)........SIEFEN......__ _ _ (ISLES)............MEDIN... .... (ROTH).........STANTON.... . (HURT)...... .......WILSON...... (WAHLSTROM)....SYLVIA......__ _ _ (BANNISTER)..... ...'WIYCHELL. .. ._ (HUNT).........WILSON...... Nwo DISTRICT 5 STAFF: BROWN...... (HART)..... ....COX STRAUS......_ _ _ ANDERSON ...� (MATT)... ... ...ROTHUST..... ANDERSON...._ ($TANTOu)......ROTH........_ CLARKE...... CANES ..... DISTRICT 5 D.YES....... -- F[L ECCIA.... (GREEN'.... ....WARNER......_ _ _ HODGES...... (HART).........PLUMMER....._ _ _ KYLE........ (STAUTnN)... ...ROTA........_ _ _ LIVER...... OOtEN....... DISTRICT STREEO......� VON LANGEN (BARRFRA).. .. ..SMITH......._ _ _ WINSOR...... (KENNEDY).. ....EDGAR..... .._ (YOUNG).. ... .. .GRIiET.. ...._ (STANTON). .....ROTA.... ... . _ _ (AGNAP)........iHER IJAN...._ (COL)...... . .. .STRAUSS... .._ (GREEN)..... ...WAHNE9......_ _ _ DT_ yERS: WOODR'JFF... .—,L� DISTRIC ANWAR T !i ......._ NWAN....... (l SILVA). MAYS v DEM14....... E .... WINCHEIL. Fl_EMINC8ANN I ii .... _ .... (ROTH).........STANTON..... HOHENER.. .... V HOUGH....... DISTRICT 13 HOWARD...... _-- HUNT........ (BIGONGS?).....WEDAA......._ . _ KNOPF.......� (HUNTER)...... .PICKLER....._ _ _ LINDSTROM..._ (STANi'JN).. ....ROTH........_ _ _ LYNCH......._ (BARRERA)......SMITH......._ _ _ STONE......._ (ISLES)........YEDIN......._ _ _ WASON......._ YOUNG....... DISTRICT 1� �./ (MILLET).......KENN........_ _ _ NNEDY (STANT)N)......ROTH........_ (STANTON) SHERIDAN...._ _ _ (AGRAN)........SMITH......._ (9ARTE RA)......SNIiP......._ 05/11/89 COUNTY SANITATION DISTRICT NO. 11 OF ORANGE COUNTY, CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING June 7, 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. 11 of Orange County, California, met in an adjourned regular meeting at the above hour and date. The Chalrman called the meeting to order at 5:40 p.m. The roll was called and the Secretary reported a quorum present. DIRECTORS PRESENT: Tom Mays, Chairman, Grace Winchell DIRECTORS ABSENT: Roger R. Stanton STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager, Rita J. Brown, Secretary, William N. Clarke, Thomas M. Dawes and Gary G. Streed OTHERS PRESENT: Thomas L. Woodruff, General Counsel , Conrad Hohener Update on long-range financial The General Manager reported that in program and consideration of 1987 the Board modified their long-range amendments to existing sanitary financial program and implemented a sewer service charges supplemental user fee to make up the shortfall of ad valorem tax revenues and provide the additional financing necessary for both operations and maintenance costs as well as major facilities' rehabilitation. User fees are charged to all properties connected to the sewer. Funds for facilities' expansion are currently provided from connection fees on new development paid by the developer. In 1986 the Board also considered the issuance of Certificates of Participation (COP's) to partially finance their share of the joint works construction at the treatment plants but the District 11 Board decided against this proposal . Mr. Sylvester then reviewed the current fee schedules of the District, as follows: Single-Family Multl-Family Conmercia/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 $15.83 per $18.90 per 1,000 sq. dwelling unit dwelling unit ft. of building -1- 6/07/89 DISTRICT it He further reported that the Districts all have a separate industrial user fee billed annually by the Districts for users that place a higher demand on the Districts' sewerage system. 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. 11 will exhaust its capital funds as soon as 1990. 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 in the next few years the user fees may have to escalate at an accelerated pace to maintain the District' s financial integrity. However, there are several unknowns that may 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. Mr. Streed 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 flaw 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 flow will require new facilities. He noted that a determination would be made by the Board after a decision is made on the permit renewal application and any revised connection fees would probably be effective October 1, 1989, when the residential connection fee is projected to be $2,260 under Scenario 2. He further reported that over the next 10 years COP-type borrowing totaling $54 million is projected to be needed to meet joint works treatment and District sewer capital requirements. He indicated that a more detailed analysis would be performed and presented 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 assumed to be at a fixed rate of 8% for 20 years. �../ -2- 6/07/89 DISTRICT 11 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. Staff reported that the projections assume that the Balsa Chica will annex to the District and that annexation fees In the amount of $3,020,000 will be received in 1989-90. However, If the annexation fees are not received In 1989-90, District No. 11 will probably have to accelerate its Issuance of $30,000,000 In COP's from 1990-91 to 1989-90. Sufficient Information 1s not available to the District at this time on the projected development of the Balsa Chica to enable an estimate of connection fee revenues from this area. Any connection fees received would partially reduce the projected $54,000,000 estimated CDP' s over the next 10-year period. The Board then entered into a lengthy discussion of the District's financial condition and estimated fee schedules for the future. Considerable time was devoted to alternatives relative to financing the capital facilities requirements and a review of connection fees and the proposed development within the District' s existing boundaries, as well as the anticipated annexation of the Balsa Chica, and a fee structure that provides that new development pays the appropriate amount for sewerage system capacity. Staff reiterated that the current annexation fee and the proposed connection fee formula recommended by the Master Plan financial consultant assures that new development pays its fair share of existing and needed future facilities. 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 Commercia/Industrial/ Fee Type Residential Residential Governmental/Other Annual User Fee $40.00 per $24.00 per $29.00 per 1,000 sq. dwelling unit dwelling unit ft. of building Staff reiterated 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 will present their recommendations to the Board relative to Increasing the connection fees. Mr. Sylvester also reiterated that the recommended change in the policy for computing connection fees would increase the fee from $1,500 to $2,260. Thereafter, the connection fee would probably increase 5% annually based on the construction cost index. He added that those projections are based on the assumption of Scenario 2, continuing with the current level of treatment. If the Boards choose to go to Scenario 3, full secondary treatment, the current fee would increase to $2,500. Actions re proposed Ordinance No. 110 First reading of Proposed Moved, seconded and duly carried: rdinanCe No. 1109 That proposed Ordinance No. 1109, An Ordinance of the Board of Directors of County Sanitation District No. 11 of Orange County, California, Amending Ordinance No. 1108 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. -3- 6/07/89 DISTRICT 11 Following the reading of Ordinance No. 1109 by title only, it was moved, seconded and duly carried: That Ordinance No. 1109, An Ordinance of the Board of Directors of County Sanitation District No. 11 of Orange County, California, Amending Ordinance No. 1108 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 findin that ado ti on of Following a verbal report by the rdinance Na. 1109 is 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. 1109 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. Approving Professional Services A reement with John arollo nginee rs for preparation of Phase Preliminary Project Report for Slater Avenue Pump tation Sewage S stem Im rovements ontract No. 11-17 Verbal report of staff The Director of Engineering reported that the new sewerage facilities Master Plan report prepared for the Joint Districts as part of the "Action Plan" �.../ effort includes bath the joint treatment and disposal facilities, as well as the sewer conveyance systems for each of the sanitation districts. In District 11 the consultants have found that Slater Avenue Pump Station and certain trunk sewer facilities will be deficient for meeting future short-term and long-term capacity requirements; the most notable deficiency being the Slater Avenue Pump Station. The long-term solution had been identified in previous master plan reports as the extension of the Coast Trunk Sewer from its present terminus at Golden West Street in Orange Avenue northwesterly through the Bolsa Chica area to Edwards Street at Slater Avenue. Under this plan a line extending easterly In Slater Avenue would relieve the Slater Avenue Pump Station, while a line extended north in Edwards Street would relieve the Springdale Street sewer collection facilities, all at an estimated cost of $21.9 million. The new master planning team reviewed this and other alternate ways to provide the needed sewer improvements. The alternatives included diverting a portion of the area tributary to the Slater Avenue Pump Station easterly to the Knott Interceptor, thereby reducing the quantity of flow through the Slater Avenue Pump Station at an estimated cost of $16.6 million; and rebuilding the Slater Avenue Pump Station at an estimated cost of $14.2 million. The latter is the most economical method. The Slater Avenue Pump Station is currently operating at or near capacity. With continuing development taking place within the drainage area served by the pump station, a project to correct the projected deficiencies is urgently �✓ needed. -4- 6/07/89 DISTRICT 11 The pending Master Plan recommends that the Slater Avenue Pump Station be rebuilt at essentially the same location. It appears that the station could best be built adjacent to the existing station on lands now owned by General Telephone (GTE). Three phases of work for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17, are envisioned: Phase I includes preparation of a project report detailing the size and construction requirements of the pump station elevations and the trunk sewer improvements tributary to the station. The engineering documents will also provide the necessary data for acquisition of a site from GTE. Phase II will include preparation of detailed construction plans and specifications, and an addendum to the professional services agreement will be negotiated and presented to the Directors for consideration at a later date. Phase III will be the actual construction of the facilities. In February, staff recommended that the Board proceed with the Phase I work for preliminary engineering work in advance of the "Action Plan" completion and certification in order to ensure that District 11 can continue to provide adequate sewer service. The Board authorized solicitation of proposals for the Phase I work. Mr. Dawes reviewed the proposals received from John Carollo Engineers, Boyle Engineering Corporation and Brown and Caldwell Consulting Engineers, and `a✓ recommended approval of a professional services agreement with John Carollo Engineers for preparation of Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17, on an hourly-rate basis including labor plus overhead, and fixed profit, for an amount not to exceed $44,738.00. Mr. Dawes also noted that it is anticipated that engineering services for Phase II and Phase III will be negotiated upon completion of Phase I. This portion of the contract will be negotiated separately and presented to the Board for approval at that time. Receive and file Staff Report Moved, seconded and duly carried: dated May 31, 198 That the Staff Report dated May 31, 1989 re selection of engineering consultant for preparation of Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17, be, and is hereby, received and ordered filed. A rovin Professional Services Moved, seconded and duly carried: Agreement w th John arollo Engineers re Contract No. 11-17 That the Board of Directors hereby adopts Resolution No. 89-50-11, approving Professional Services Agreement with John Carollo Engineers for preparation of Phase I Preliminary Project Report for Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17, on an hourly-rate basis for labor plus overhead, plus fixed profit, for a total amount not to exceed $44,738.00. A certified copy of this resolution is attached hereto and made a part of these minutes. -5- 6/07/89 DISTRICT 11 Adjournment Moved, seconded and duly carried: That this meeting of the Board of Directors of County Sanitation District No. it be adjourned. The Chairman then declared the meeting so adjourned at 6:44 p.m. , June 7, 1989. ziecretary, Boarm of Directors County Sanitation District No. 11 of Orange County, California -6- " 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. 1L held on , 19M was duly posted for public inspection at the main lobby of the District's offices on gift. s+ IN WITNESS WHEREOF, I have hereunto set my hand this day of 1921%. R a J. Brown, 5ecre ary at t e Board of Directors of County Sanitation District No. of Orange County, Californ a