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HomeMy WebLinkAbout1990-04-18 �- �F,°.'-°� °�, COUNTY SANITATION DISTRICTS t �" OF ORANGE COUNTY, CALIFORNIA P.O. BOX 8127, FOUNTAIN VALLEY, CALIFORNIA 92728-8127 °�aoecw� 10844 ELLIS, FOUNTAIN VALLEY, CALIFORNIA 92708-7018 (714) 962-2411 April 12, 1990 NOTICE OF ADJOURNED REGULAR MEETING DISTRICT NO, 2 WEDNESDAY, APRIL 18, 1990 - 7 :30 P .M. ORANGE PUBLIC LIBRARY 101 North Center Street Orange, California (See enclosed location map) Pursuant to adjournment of the regular meeting of April 11, 1990, the Board of Directors of County Sanitation District No. 2 will meet in an adjourned regular meeting at the above hour and date. �Secretary L H Ll E-02 Ll 0 Ll J J Ll < a e N > Y a 9 0 2i . > V J V Z fa a OLSE, AVE m 't bo w 2 MORELANO D . BOO Sae N � N F ci v s t- a .os N ALMONU N 3 >- •" ' - - - W45HINGTON J F i RT1 � e h. YRA N AV. E PALMYRA 4V. ICELLY A w VAN BIBBER"f 5 s I` VAN AV✓i LVER N •„ i A 4V. o ARO O f ¢ J i y CNALYNN am i a LA VETA " pV L4 VET c TULAR054 TULAR NWIOSA `MI J RI F AV. W N ST ROSEW ROBc.000 Av HART ,PARK F RW4Y •OR RO<F Noan� COUNTY SANITATION DISTRICT #2 PUBLIC HEARING 7:30 pm, WEDNESDAY, APRIL 18, 1990 BOARDS OF DIRECTORS County Son0allon Diddcfs P.O.Box 8127. 108"Slis Avenue of Orange County,CalBomia Founfaln Valley,CA 9272&4127 Telephone.,(714)962.2411 DISTRICT NO. 2 AGENDA ADJOURNED REGULAR MEETING WEDNESDAY, APRIL 18, 1990 - 7:30 P.M. ORANGE PUBLIC LIBRARY 101 North Center Street Orange, California (1) Roll call (2) Public Comments: All persons wishing to address the Board on a su jec of this hearing should complete the "Request to Present Oral Comments" form (pink form) and submit to the Board Secretary prior to the beginning of the meeting. As determined by the Chairman, speakers ' remarks may be limited to five minutes. ( 3) (a) Public Hearing on proposal to collect adopted annual sewer service charges on the property tax bills and on the Sewer Service Charge Report for Fiscal Year 1990-91, pursuant to Ordinance No. 210: (1 ) Open hearing (2) verbal staff report on proposed use of the County of Orange property tax bill for collection of the annual sewer service charge. ( 3) Consideration of motion to receive and file written staff Sewer Service Charge Report for Fiscal Year 1990-91. See page "A" (4) Consideration of motion to receive and file written comments received, if any (Copies enclosed with Directors, agenda material) . (5) Oral public comment (6) Staff/Board response to oral comments (7) Close hearing (b) Consideration of motion to adopt a finding that a majority of the owners of property have/have not protested [ITEM ( 3) CONTINUED ON PAGE 2] a DISTRICT 2 4/18190 (3) (c) Consideration of adoption of County Sanitation District No. 2 Sewer Service Charge Report for Fiscal Year 1990-91 (d) Consideration of Resolution No. 90-38-2, directing the County Auditor-Controller to include sewer service charges on the property tax bills, pursuant to Ordinance No. 210 of County Sanitation District No. 2 of Orange County, commencing with the 1990-91 fiscal year. See page "B" (4) Other business and communications, if any (5) Consideration of motion to adjourn -2- COUNTY SANITATION DISTRICTS April 18, 1990 w ORANGE COUNTY. CALIFORNIA 108E ELUS AVENUE 00.OOXO127 FOUNTAIN VALLEY.CALIFORNIA 82"8.8127 COUNTY SANITATION DISTRICT NO. 2 O141 M-2411 SEWER SERVICE CHARGE REPORT FOR FISCAL YEAR 1990-91 This report is prepared pursuant to the requirements of California Health and Safety Code Section 5473. County Sanitation District No. 2 is responsible for the collection, treatment and disposal of wastewater generated within its boundaries. These services are essential to the protection of the health and safety of the public served by the system. District No. 2 revenues from ad valorem taxes on real property decreased significantly after passage of Proposition 13 in 1978. Future tax revenue, estimated in reports on file in the office of the Secretary of the District, will be insufficient to provide the funding necessary to operate, maintain and rehabilitate the sewerage system. Therefore, a long-range financial program, including a sewer service charge, has been adopted by ordinance of the District to supplement the District's revenue sources in the upcoming fiscal years. The Board of Directors of County Sanitation District No. 2 proposes consideration of a resolution authorizing billing and collection of its annual sewer service charges as set forth in Table A of Ordinance No. 210, An Ordinance of the Board of Directors of County Sanitation District No. 2 of Orange County, California on the 1990-91 County of Orange property tax bills. The purpose of this charge is to pay for sanitary sewer services provided by the District to be charged to the respective parcels of improved property within the territorial jurisdiction of the District. This report contains a description of each parcel of real property that will receive the services of the District and have access to utilization of the facilities, said parcels of real property being described by reference to maps prepared in accordance with Section 327 of the California Revenue and Taxation Code and on file in the office of the County Assessor, which maps are hereby incorporated herein by reference. The ordinance established the annual fee to provide revenues that shall be used only .for the acquisition, construction, reconstruction, maintenance, operation and rehabilitation of sanitary sewer facilities, and shall not be used for the acquisition, construction or maintenance of new local street sewers or laterals as distinguished from main trunk, interceptor and outfall sewers provided by the District. The approved sewer service charge for fiscal year 1990-91 to be assessed against each user of the District's sewerage system based on the user's public property type is set forth in Table A attached hereto. Said table also sets forth exception provisions. The 1990-91 charge for each parcel based on the last equalized assessment roll can be determined from the computer printouts on file in the office of the Secretary of the District. "A-1" AGENDA ITEM #3(a) (3) "A-1" District No. 2 - Sewer Service Charge Report Page 2 If the proposed resolution is adopted, the Board of Directors will direct the County Auditor-Controller to have such charges for the forthcoming fiscal year collected on the tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from, the general taxes of the District and the County of Orange. At the time and place stated in the notice setting the public hearing on this report, the governing Board of Directors shall hear and consider all objections or protests, if any, to said report referred to in said notice, and may continue the hearing from time to time. aryc o Streed Direr of Finance "A-2" AGENDA ITEM #3(a) (3) "A-2" �...✓ ATTACHMENT 1 TABLE A 1990-91 Class of User Basis of Charge Annual Hate Single-Family Charge per $55.00 Dwelling dwelling unit Multi-Family Charge per 33.00 Dwellings/Mobile dwelling unit Homes/Apartments Commercial/ Charge per 1000 39.00 Industrial/Other square fee of (government building buildings, utilities, non-profit organizations, etc. ) In recognition that certain legal parcels of real property exist within the District which are not connected to the District system and that other properties acquire considerably greater potable water than is ultimately discharged to the District's system it is the intent of the District that said parcels be exempt totally or in part from the payment of charges as prescribed herein. Any property owner may appeal the assessment of the charges and submit a claim for rebate to the District on the forms prescribed and provided by the District within one hundred twenty (120) days after the annual property tax bills are mailed by the Orange County Tax Collector. All applications for rebate of an assessment will be determined by the General Manager of the District, or the Finance Director of the District as his designee, who may grant a partial or full rebate or adjustment of the charge based on receiving satisfactory proof that an inequity exists between the amount or assessment and the amount of wastewater discharged to the District's system. Such inequities may include, but are not limited to: a) no service connection to the District system exists from the parcel assessed b) principal water use is agricultural c) any other use wherein the amount of wastewater discharged to the District's system is significantly less on a regular basis than the amount of potable water received as measured by the meter on the property. "A-Y AGENDA ITEM #3(a) (3) "A-Y ATTACHMENT 1 Page 2 Pursuant to the authority granted by California Health and Safety Code Section 5473, all charges established herein shall be collected on the County Tax Roll in the same manner, by the same persons and at the same time as, together with and not separately from, its general taxes. In the event District determines that errors or inequities exist in the amount of charges to be collected by the County Tax Collector, District may submit a bill for any difference directly to the property owner. Said invoiced amount shall be due and payable within thirty (30) days of invoice date. A credit shall be allowed to all dischargers permitted pursuant to Article 3 of Ordinance No. 208 for the annual sanitary sewer service charge established by this Ordinance in the same manner as credit is allowed for ad valorem taxes pursuant to section 302.6, 303.6 and 304.6 of Ordinance No. 208. "A-4" AGENDA ITEM a3(a) (3) "A-4" ATTACHMENT 2 1990-91 Use Fee District No. 2 The Sanitation Districts use the County Assessor's database to determine the amount of sewer use fees that will be assessed each year and to place the charge for each parcel on the property tax bill. The Assessor prepared preliminary use fee reports and mailing labels for District No. 2 using conservatively estimated rates from the 1989-90. budget process. Subsequently, the District No. 2 Board of Directors adopted lower rates, but revised reports could not be prepared. In order to determine the actual 1990-91 supplemental user fee for a specific parcel, the following conversion must be made: Property Code Property Type Reported Fee Adopted Fee 0 Mobile Home $42.00 $33.00 1 Single-Fam. Res. 70.00 55.00 2 Multi-Fam. Res. 42.00/Unit 33.00/Unit 3 Commercial 50.00/1000 sq.ft. 39.00/1000 sq.ft. 4 Industrial 50.00/1000 sq.ft. 39.00/1000 sq.ft. 5 Rural 70.00 55.00 6 Miscellaneous 50.00/1000 sq.ft. 39.00/1000 sq.ft. 7 Tax Exempt 50.00/1000 sq.ft. 39.00/1000 sq.ft. 8 Other 50.00/1000 sq.ft. 39.00/1000 sq.ft. A-5" AGENDA ITEM #3(a)(3) "A-5" J YM -� RESOLUTION NO. 90-38-2 `..O DIRECTING COUNTY AUDITOR-CONTROLLER TO COLLECT-SEWER SERVICE CHARGESN 19 - 1 PROPERTY TAA BILLS A RESOLUTION OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 2 OF ORANGE COUNTY, CALIFORNIA, DIRECTING THE COUNTY AUDITOR-CONTROLLER TO INCLUDE SEWER SERVICE CHARGES ON THE 1990-91 PROPERTY TAX BILLS WHEREAS, the Board of Directors of County Sanitation District No. 2 has heretofore adopted Ordinance No. 210, An Ordinance of the Board of Directors of County Sanitation District No. 2 of Orange County, California, Establishing Sanitary Sewer Service Charges; and, WHEREAS, California Health & Safety Code Section 5473 provides that such charges, as adapted by District Ordinances, may be collected on the County tax roll in the same manner, by the same persons, and at the same time as, together with and not separate from, its general taxes. NOW, THEREFORE, the Board of Directors of County Sanitation District No. 2 of Orange County, California. DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. That pursuant to California Health & Safety Code Section 5473, the County Auditor-Controller is hereby ordered and directed to include sewer service charges, as established by Ordinance No. 210, on the 1990-91 property tax bills in the same manner, by the same persons, and at the same time as, together with and not separate from, the general taxes; and that such sewer service charges be included in the annual property tax bills for each year thereafter, for so long as the rates do not change and this resolution remains in effect; and, e.d "B-1" AGENDA ITEM #3(d) "B-1" Section 2. That pursuant to California Health 8 Safety Code Section 5473, this resolution shall remain in full force and effect until amended or repealed or until such time as the rate of sewer service charges, as established by Ordinance No. 210, is changed; and, Section 3. That the General Manager be, and is hereby, authorized and directed to execute any necessary documents or agreements to effect the order set forth in Section 1 herein. PASSED AND ADOPTED at an adjourned regular meeting held April 18, 1990. "B-2" AGENDA ITEM #3(d) "B-2" MANAGER'S AGENDA REPORT County Sanitation Districts P.O.Box 8127.10844 Ellis Avenue of Orange County, California Fountain Volley,CA 92 72881 2 7 Telephone:(714)962.2411 DISTRICT NO. 2 MANAGER'S REPORT TO DISTRICT NO. 2 DIRECTORS MEETING DATE: WEDNESDAY, APRIL 18, 1990 - 7:30 P.M. Orange Public Library 101 North Center Street Orange, California Item No. 3: Public Hearing on proposal to collect the adopted annual sewer service car es on a ount of ran a property tax bills; and 1 - 1 5ewer bervice Charge Report. Purpose: The purpose of this hearing is to consider use of the property tax bill for collection of the District's annual sewer service charge, and to adopt the 1990-91 Annual Sewer Service Charge Report. The hearing is not intended to consider the sewer service charge itself, as it was adopted following a separate hearing on February 14, 1990. Background: The District's cost of providing sewerage service to the community as�been escalating rapidly because of inflation and increasingly stringent federal , state and local laws and regulations for assuring protection of the environment and the public health and safety. In Fiscal 1990-91, property tax revenues and other existing revenue sources were projected to be insufficient to meet the District's funding requirements. Due to insufficient tax revenues, by the end of 1990-91 the projected shortfall to meet the District's operating expenses and maintain the solvency of the fund would have reached $12 million, increasing to $248 million by 1998-99. Therefore, in 1989, after considerable study of the District's long-range funding requirements, the Board adopted a long-range financial program to avoid projected revenue shortfalls and provide the necessary income required to finance the District's rising operating expenses, as well as major capital expenditures for construction of master-planned treatment facilities. The plan basically provides for funding of capital requirements by a combination of sewer connection fees on new development and issuance of debt; and operating requirements by a combination of annual sewer service charges coupled with continued use of the ad valorem taxes allocated pursuant to Proposition 13. Since then the following fee schedules have been adopted by the Board to fund the District's requirements: One-time Connection Fee: Residential Property $2,270/Dwelling Unit Commercial , Industrial 8 $ 450/1,000 Sq. Ft. Governmental Property -1- Manager's Report to District No. 2 Directors The one-time connection fee, paid by developers and used to build facilities to serve new development, is collected for the District by the cities when building permits are issued, and the cities retain 5% for their services. Annual User Fee: Single-Family Residence $ 55.00 Multi-Family Residence/Mobile Home 33.00 Commercial 39.00/1,000 Sq. Ft. Industrial 39.00/1,000 Sq. Ft. Governmental 39.00/1,000 Sq. Ft. The annual sewer service charge was adopted by the Board in February, effective July 1, 1990, to provide the necessary additional funding for District's ongoing operation and for debt service as recommended in the 30-year Wastewater Management Action Plan approved by the Boards in July, 1989. (Copies of the staff report considered by the Board when implementing the sewer service charge are enclosed with this report for additional background information. Also enclosed is a copy of Ordinance 210 fixing the user fees.) Proposal to Collect Annual Sewer Service Charge on Property Tax Bill : The staff has identified and evaluated the following three methods of billing and collecting the annual sewer service charge to be used to pay for 0 & .M: - direct billing and collection by the District - placement of the user fee as a separate line item on a water bill and remittance to the District of the fees collected by the water purveyor - placement of the sewer use fee as a separate line item on the County of Orange property tax bill and remittance to the District of the fees collected by the County. Placement of the user fee as a separate line item on the County of Orange property tax bill is significantly less expensive than the other two available methods as indicated in the following table: Annual Billing/ Total Total Billing & One-Time Processing First-Year Five-Year Collection Method Setup Casts Collection Costs Costs Costs 1. District billing/ $432,000 $302,400 $ 734,400 $1,944,000 collection method 2. Water utility 3749000 726,800 1,100,800 4,000,008 bill method 3. County property 374,000 67,700 441,700 712,500 tax bill method -2- Manager's Report to District No. 2 Directors Alternative No. 3, use of the County of Orange property tax bill method, is clearly the most cost-effective of the three methods. Districts Nos. 1, 3, 5, 6, 11 and 13 have already adopted this method for billing their user fees, and it has proven to be quite effective in minimizing administrative costs for billing and collecting fees in these six Districts. California Health and Safety Code Section 5473.1 requires that a District considering collection of its annual sewer service charges on the property tax bills must notify all property owners in the District and hold a public hearing to consider any objections or protests to the proposed collection method. It is not a public hearing on the fee itself, as that has previously been fixed by OrdTn—ance No. 210 adopted on February 14, 1990, but is one of the final steps to be taken by District No. 2 to implement its long-range financing program to fund ongoing operations and maintenance costs. In late February and early March, 239,611 notices of the hearing (copy enclosed) were sent to property owners. We have received approximately 108 phone calls from property owners since the notice was mailed. On March 13th and 22nd, workshops on the proposal were conducted by staff in Fullerton and Placentia, respectively. A total of 22 citizens attended and asked questions. Staff will elaborate on the comments of these residents at the hearing. Although the purpose of the hearing is to receive public commentary on the proposal to collect the annual user fee on the tax bill , not the fee itself, we expect that many citizens attending the hearing will wish to comment on the user fee. Staff will , therefore, present an oral report at the hearing briefly describing the District's activities and outlining the background and financial position of the District, as well as addressing the reasons for the proposed billing and collection method. The items appearing on the agenda are the actions required to commence collecting the District's annual user fee on the property tax bill beginning in 1990-91. JWS:sc Enclosures: Notice of Hearing Staff Report dated 11/27/89 Ordinance 210 I./ -3- RO 'AGENDA ITEM NO. (3) (a) (4) COUNTY SANITATION DISTRICTS of ORANGE COUNTY, CALIFORNIA 10844 ELUa AVENUE ao.Box sip, `� April 11, 1990 FOUNTAINvA pE419924NIIIA azoaeafav DISTRICT 2 PROPOSAL TO COLLECT USER FEE ON PROPERTY TAX BILL Summary of Written Comments Received Through Aoril 10, 1990 SUPPORT PROPOSAL PREFER USE OF WATER BILL Marilyn R. Cochran Greene and Frazier 211 S. Redwood Ave. Certified Public Accountants Brea, CA 92621 1240 Lakeview Ave. Anaheim, CA 92807 DISTRICT SHOULD CUT COSTS INEQUITABLE RATE STRUCTURE L. T. Mazzola William S. Harvey 2825 Firethorne Ave. Developer & Real Estate Broker Fullerton, CA 92635 PO Box 1514 Arroyo Grande, CA 93421 Stanford Park PROPOSITION 13 10352 Stanford Ave. Garden Grove, CA 92640 Robert M. Ames 1527 W. Harle Place Anaheim, CA 92802 GG5024 DISTRICT No. 2 PROPERTIES NOT CONNECTED TO SEWER Anaheim Barksdale, Anthony W. Harris, Paul D. Barksdale, Patricia A. 4910 Santa Ana, Cyn Rd. 181 S. Possum Hollow Anaheim, CA 92807 Anaheim, CA 92807 Barnes, Ronald E. Liggett, Francis Sherman Barnes, Carol M. 571 S. Peralta Hills Dr. 7675 Eucalyptus Way Anaheim, CA 92807 Anaheim, CA 92808 Chadez, Victor Lopez, Antonio H. 5426 E. Orangethorpe Ave. 1342 N. Miller St. Anaheim, CA 92807 Anaheim, CA 92806 Chavez, David J. Ponteprino, Meyer E. 4420 E. La Palma Ave. 1471 N. Placentia Ave. Anaheim, CA 92807 Anaheim, CA 92806 Fountain, Evart C. Ritter, Larry R. 1432 W. Roberta Ritter, Maria E. Fullerton, CA 92633 191 S. Possum Hollow Anaheim, CA 92808 Hale, Patricia Ann 101 S. Eucalyptus Dr. Vista Del Rio Ro Water Group Anaheim, CA 92808 PO Box 17073 Anaheim, CA 92817 Fullerton Donegan, Craig R. Taylor, Burt L. Donegan, Pamela T. 1220 Linda Lane 3110 Las Faldas Dr. Fullerton, CA 92631 Fullerton, CA 92635 Moisi, Joseph A. Teasdale, Audrey B. 1300 Sunnycrest Dr. 400 E. Las Palmas Dr. Fullerton, CA 92635 Fullerton, CA 92635 Garden Grove Garcia, Joe M. Garcia, Avalon - 13141 Palm St. Garden Grove, CA 92643 DISTRICT No. 2 PROPERTIES NOT CONNECTED TO SEWER Orange Amusement Electronics Co. Moore, Melinda C. 19142 Glen Arran Lane 1638 N. Cambridge Orange, CA 92669 Orange, CA 92667 Bulthuis, Albert Oliver, Andrew L. 1962 N. Glassell St. 805 N. Lincoln St. Orange, CA 92665 Orange, CA 92667 Byers, Elaine Piper Paulus, Arthur E. 6705 E. Oak Lane PO Box 3035 Orange, CA 92669 Orange, CA 92665 Cosy, Robert C. Perez, Severiano J. 16522 E. Cumberland Ave. Perez, Ruth A. Orange, CA 92665 16542 Heim Ave. Orange, CA 92665 Cooper, Jon W. Cooper, Eathlin M. Ramer, Mary B. 962 Wanda Rd. 3042 N. Sheri St. Orange, CA 92667 Orange, CA 92665 Estes, Garmon Jr. Ritter, Maurice A. 1902 E. Collins 16372 Heim Ave. Orange, CA 92667 Orange, CA 92665 Flocken, Marie E. Schuck, Clifford D. 627 Cully Dr. 15581 E. Cully Dr. Orange, CA 92665 Orange, CA 92665 Hawkins, G. William Shanafelt, John G. Jr. 6807 E. Oak Lane 3827 W. Chapman Ave. Orange, CA 92669 Orange, CA 92668 Hoffman, William Spielman, Leonard 2396 N. Batavia St. 6719 E. Oak Lane Orange, CA 92665 Orange, CA 92669 Jefts, Richard M. Travernier, Ernest 16386 Fellows Dr. 16312 Fellows Dr. Orange, CA 92665 Orange, CA 92665 Johnson, Clayton W. Jr. Walker, William R. 12431 E1 Rancho Place 16352 Heim Ave. Garden Grove, CA 92640 Orange, CA 92665 LeCouix, James E. Witt, Richard D. PO Box 5887 956 N. Shaffer St. 1432 North Glassell Orange, CA 92667 Orange, CA 92613 DISTRICT No. 2 PROPERTIES NOT CONNECTED TO SEWER Placentia Olander, Harold H. Phillips, Leeta M. PO Box 51 2419 N. Rose Dr. Placentia, CA 92670 Placentia, CA 92670 Santa Ana Quick, Alvin E. Quick, Nellie W. PO Box 5094 Santa Ana, CA 92704 Villa Park Ehlen, Lawrence H. Metz, Ramey B. 10232 Center Dr. 18605 S. Mesa Dr. Villa Park, CA 92667 Villa Park, CA 92667 Henderson, Dortha M. 18916 S. Mesa Dr. Villa Park, CA 92667 Yorba Linda Asta, Donald W. Crowder, Rutherford H. Asta, Ingrid M. 5072 Richfield Rd. 5373 Grandview Ave. Yorba Linda, CA 92686 Yorba Linda, CA 92686 Dutton, Roy Atzet, Frank C. 5642 Grandview Ave. 18820 Oriente Dr. Yorba Linda, CA 92686 Yorba Linda, CA 92686 Flatten, Orris H. Basham, U. H. 17745 Lomita Lane 4202 Merienda Lane Yorba Linda, CA 92686 Yorba Linda, CA 92686 Flynn, Patrick F. Baxter, Howard L. 5521 Grandview Ave. 4551 Rose Dr. Yorba Linda, CA 92686 Yorba Linda, CA 92686 Fox, Gregg G. Covey, Thomas A. 16882 Nightingale Lane 5462 S. Lake View Ave. Yorba Linda, CA 92686 Yorba Linda, CA 92686 DISTRICT No. 2 PROPERTIES NOT CONNECTED TO SEWER Yorba Linda (Con't) Hawkins, Eugene S. Morton, Emery L. 5432 Lakeview Ave. 19100 Pradera Lane Yorba Linda, CA 92686 Yorba Linda, CA 92686 Hoffman, Richard W. Mulkey, Larkin V. 5611 Kellogg Dr. 5832 Ohio St. Yorba Linda, CA 92686 Yorba Linda, CA 92686 Imperial-Rose Co. Oberjuerge, Robert A. 1920 St. Andrews Dr. 18847 Via Sereno Seal Beach, CA 90740 Yorba Linda, CA 92686 Jagusiak, Mark M. O'Shea, Rita Jagusiak, Mary B. 4611 N. Palm 19198 Skyview Knoll Yorba Linda, CA 92686 Yorba Linda, CA 92686 Page, Raymond A. Jensen, Larry W. PO Box 89 19192 Skyview Knoll Atwood, CA 92601 Yorba Linda, CA 92686 Prosser, Barbara Kroenlein, Dieter 4588 Danita Lane 5571 Fircrest Dr. Yorba Linda, CA 92686 Yorba Linda, CA 92686 Sanderfer, Ruby E. Lankford, James W. 18491 Buena Vista Lankford, Judy Yorba Linda, CA 92686 4293 Avocado Ave. Yorba Linda, CA 82686 Shaver, Howard W. 16631 Lathrop Dr. Leonard, James K. Yorba Linda, CA 92686 Leonard, Dorothy M. 4911 Shaw Lane Shigekawa, William M. Yorba Linda, CA 92686 206 Copp Kula, HI 96790 Majors, William J. 4561 N. Palm Ave. Staumont, Ferdinand Yorba Linda, CA 92686 Staumont, Lenke E. 18101 Avolinda Dr. Merlo, Joe Yorba Linda, CA 92686 4912 Casa Loma Ave. Yorba Linda, CA 92686 Stewart, Robert 5641 Mountain View Ave. Meyers, Byron P. Yorba Linda, CA 92686 4761 Palm Ave. Yorba Linda, CA 92686 Studer, Leo L. Studer, Katherine A. McCormick, William C. 5374 Douglas Lane 4742 Palm Ave. Yorba Linda, CA 92686 Yorba Linda, CA 92686 DISTRICT No. 2 PROPERTIES NOT CONNECTED TO SEWER Yorba Linda (Con't) Warren, Herbert M. Williams, Sidney H. 5251 Highland Ave. 5271 Cherrylee Lane Yorba Linda, CA 92686 Yorba Linda, CA 92686 MARILYN R. COCHRAN 211 S. REDWOOD AV #37 BREA, CA. 92621-5533 March 13, 1990 County Sanitation Districts of Orange County P. 0. Box 8127 Fountain Valley, Ca. 92728-8127 To Whom It May Concern: I am responding to the Notice of Public Hearing regarding District 2's proposed billing and collection method of the sewer service fee. I am writing to offer my support of this proposal . I was thrilled to see that a government agency took the initiative to help the taxpayers and the county SAVE money by combining this new fee on an existing bill. Whoever came up with this suggestion deserves commendation for organized thought and public concern. I am sure you will receive lots of negative comments from the area-because some people won ' t understand your well written notice or will object on some kind of principle. I just wanted to voice my opinion and support of this proposal and send a note of praise to the district for coming up with this cost-saving method of collecting a necessary fee. Sincerely, i nce Maril n R. Cochran Brea Homeowner `►r GREENE b FRAZIER CC, IFILG v SUC ACCOUNTANT RW x0"Tx eWTCTC 220 bLNYC BwNC Ya x,""CCN0.CN CO Ncvix N.rnwzm v.cvw AN.WEIM.CWFORHIA B2B07-I831 pw1 ne-8698 February 28, 1990 County Sanitation Districts Sanitation District #2, Attn: Director of Finance P.O. Box 8127 Fountain Valley, CA 92728-8127 Re: Proposed New Sewer Service User Fee, Other items to Consider Sirs: We both live in Yorba Linda, so are directly affected by the proposed new sewer service fee! Two very important considerations you did not address in your Notice of Public Hearing brochure are: 1. You will be adding a NON-TAX to individual property tax bills, which probably shouldn't be deductible for individual federal and state income tax reporting. But, most people will deduct the entire amount paid, in error and subject to adjustments by taxing authorities. A small thing, certainly, but an unnecessary complication. 2. Since our current sewer service fees are collected by Yorba Linda Water District (YLWD) ; there cannot be a meaningful increase in billing costs to have the addi- tional charge of $55 per year added prorate to current YLWD billings and forwarded to you by the established YLWD collection systems in place. This will also solve possible misapplication of these charges as property taxes! As practical businessmen, as well as interested homeowners; this helps ensure that local cities and water districts have an oversight role in why and how much you collect from a public who do not under- stand why your "expense" budget is projected to double every four years! _ ;Resp.,' tful y'/ Ivin N.arcl y N. Greene N. Fr ier 19658 Marsala Drive 5075 Marsh rn Circle Yorba Linda, Ca 92686 Yorba Linda, CA 92686 BNG:klg cc: General Manager Yorba Linda Water District �� 11 LaFAy p+c+L -d'&7 /fioT 71-e c vW—fr ivOly KM 6Xp6vW Orv6(,(4,z7 e&A:.7 7 I ow-s we�s�p 0-714?�-w dz'57S/ kbzvc, &ff— IRLb /ycorrGs GL*t u7 ? 4wt/ Paz- -7f 4- /S4vB8 AC14-7 w�� Lr15�i o�.s$zc7h//3 ✓ �/Lsr.fNlA.� laow � t4XAV2/l S Javt7 f�6S•S/2/c, Co57S v.r/ Z T//g cewti76� �c� � L/r'2 7c1IVL7 -/ w176 7 {Qy 7 w/ftt/� 7I�E v Sll4/ /t Nti7i 7Lr1.0 I n -- L: a c , a iJ G WILLIAM S. HARVEY Developer & Deal Estate Broker Commercial • Industrial • Acreage March 21, 1989 County Sanitation Districts of Orange County Post Office Box 8127 Fountain Valley, CA 92728 RE: District #2; Sewer Service User Fee I noticed that your new fees are to charge commercial and industrial customers $39.00 per 1,000/sq. ft. I am sure most of these buildings have much less discharges, per 1,000 sq. ft. , than individual apartment units, mobile homes, and single family residences . It seems extremely unfair to charge businesses such a high fee, in comparison to residential fees. I believe the fees should be added to the water bills, since in rental properties (residential, commercial and industrial ) the tenants are often responsible for the water and sewer charges, and the service is often in the tenants name. Today, with the computers that are in use, I can't understand why this would be more expensive than adding the fees to the property tax bills . I own three industrial properties in Orange County, located at: 1. 1189 N. Fountain Way, Anaheim 2. 1740-42 N. Orangethorpe Park, Anaheim 3. 210 S. Center St. , Santa Ana I hope you will consider my objections to your proposed fees, and keep me informed of the outcome. Sincerely, Bill Harvey P.O. Box 1514 • Arroyo Grande, California-934f* (805) 481-6327 9�1/ March 1,1990 To Subj : County Sanitation District No 2's Notice of Public Hearing. (Mailed late Feb.1990) You are circumventing the law (prop.13) and wishes of the people by re-naming taxes to eleminate the need for voter acceptance. By adopting the term "Users Fee" you have also proposed a form of double taxation,since we are already taxed for sanitation services on our property tax bill. Your proposal will result in a 600% increase funding for County Sanitation District 2 services. Such an increase warrants justification to the taxpayer other then the poorly devised graph shown in your mailer of Feb. 1990. Your proposed method of collecting these so called User Fees by adding to our county tax bill is entirely un-acceptabla. Such would only add perplexity and confusion to an already troubled bureaucratic life. I am greatly disappointed in the procedures being utilized by the Directors of the Sanitation District. Robert K. Ames _ 1527 W. Harle P1. Anaheim Ca. 92802 Stanford Park `./ 10352 Stanford Avenue Garden Grove, California 92640 (714) 539-1739 March 6 , 1990 O. C. Sanitation District @2 P . O. Box 8127 Fountain Valley , Ca 92728 Dear Sirs , I have just received a notice regarding a new tax of $39 . 00 per 1000 aq ft for commercial-industrial users . I have a small industrial complex of about 27 , 950 aq ft in your dis- trict. These are small units--some with one man and some with up to four in my largest . I have a total of about 27-30 people who are here from 2 to 9 hours per day depending on the type of business and use they have . Much of it is storage . The tax that you wish to collect would be about $1 , 100 . per year . I feel that is EXCESSIVE as the usage for toilet and handwashing would be less than for four or five families which would also be using sewer facilities for laundry , dishwashing and bathing . My tenants only use the toilet and have cold wa- ter for washing their hands . None of them use water for their businesses other than this . I believe it is 4 to 5 times a fair amount. I know how eager you are to find funds but also it would be nice if there was some fairness to your taking of our income . V. Duun (- owner-Stanford Park qJ COUNTY SANITATION DISTRICTS of ORANGE COUNTY, CALIFORNIA April 18, 1990 10844 ELLIS AVENUE PO BOX 8127 FOUNTAIN VALLEY.CALIFORNIA 92928.8127 17141952.2411 M E M O R A N D U M M. District No. 2 Directors - RE: Updated Financial Projections Based on the financial plan adopted by the Board last July as part of the Districts ' 30-year action plan for wastewater management, staff has refined and updated the projections on the attached cash flow based on the best information currently available. Although consideration of user fees is not the purpose of tonight' s hearing, staff has prepared this update so that the Directors have the most current information. It is not proposed to be discussed tonight. The estimated annual user fees are shown on the bottom of page 1 . JWS:sc Attc. COUNTY SANITATION DISTRICT 10. 2 I717150 STATEMENT OP PROJECTEO CASH PLOW Page 1 FISCAL TEARS 1965.90 THROUGH 1998.99 5 Its LINE 1989-50 1990-51 1991.92 1992-93 1993.9E I S-Year Total 1994.99 10-Year Total LINE .... ....... ....... ....... ....... ....... I ............ ........... ............. ---- OPERATING FUND I 1 Reserves 9 Carry-Over Free Last Year 10,070,000 8,397,000 11,379,000 16,410,000 21,145,000 I 10,010,400 21,894,000 10,070,000 1 ........... ........... ........... ........... ........... I ........... ----------- ........... REVENUE I 2 Share of It Tax Allocation 7,543,000 0,635,000 9,316,000 10,204,000 11,100,000 I 47,268,000 70,328,612 117,596,812 2 3 Fees: Industrial Waste 2,252,001 2,590,000 2,978,000 3,425,000 3,939,000 I 15,184,000 30,541,976 IS,725,976 3 I Suppleoeatal user 13,470,000 16,060,010 17,448,000 20,114,000 I 67,092,000 132,955,000 200,067,000 I S Interest 6 Miscellaneous Insole 655,000 330,000 593,000 784,000 013,000 I 3,175,000 10,252,000 13,121,000 5 6 Transfer Erna Capital Pond 6 7 Other Revenue 7 ........... ........... ........... ........... ........... ---------- ----------- ...0....... 0 TOTAL REVENUE 10,850,000 25,025,000 29,017,000 31,861,000 35,966,000 I 132,719,000 211,117,786 371,936,708 a ........... ........... ........... ........... ........... I ........... ----------- ........... 9 TOTAL AVAILABLE FUNDING 20,920,000 33,422,000 13,396,000 50,271,000 57,115,000 I 142,789,000 266,011,700 381,306,788 9 ........... ........... ........... ........... ........... I ........... ----------- ----------- RIPINDITURES I ........... ID Share of Joint Works M a 0 I1,383,000 I1,032,000 16,133,000 16,669,000 19,158,000 I 77,335,000 116,S99,000 225,934,000 10 11 Collection SYstei N 6 0 and Other Oper. 1,180,000 11261,000 1,353,000 1,453,000 1,563,000 I 6,810,000 5,315,000 16,12S,ODD 11 12 Debt Service ..New 3,750,000 7,300,000 11,000,000 14,500,000 I 36,750,000 72,500,000 109,250,000 12 ........... ........... .0......... ........... ........... I ----------- ----------- 0.......... 13 TOTAL REPRNDITURES 12,523,000 19,043,000 21,906,000 29,122,000 35,221,000 I 120,815,000 230,414,000 351,309,000 13 ........... ........... ........... ........... ........... I ........... ........... ----------- 11 Reserves a Carry-Over to Next Year 8,397,000 11,379,000 16,110,000 21,149,000 21,094,000 I 21,694,000 35,591,786 35,597,780 11 15 Next Year's Dry Period Funding Requireaents 6,262,000 9,522,000 12,193,OOD 14,551,000 17,611,000 I 17,611,000 27,536,000 27,536,000 1S ........... ........... .....0----- ........... ........... I ----------- ........... ........... 15 Fund Balance or (Deficit) 2,135,000 4,857,000 5,911,000 6,580,000 I,283,000 I 4,283,000 6,061risa 8,061,708 16 ::::::::::: tquivaleot Dwelling Units 211,900 247,075 249,250 251,425 262,300 Single Faally Residence Annual Fee SS 65 70 80 III Aooual SupPleaeatal User Pees 13,470,000 16,060,000 17,448,000 20,114,00D 30,609,000 f0UY11 SANI7ATIOtl D1571ICT MD. 2 I ' STAY BN6H7 Of PIOJIC71D CASH PLOY P( - FISCAL TRANS 1909-90 THROUGH 199E-55 1989-90 1990-91 1991-92 1592-93 1993-94 5-year Total 1994-99 10-year Total CAPITAL FUNDS ....... ------- ....... ------- ....... ............ ........... ............. --------------- 17 Reserves R Carry-over from Last fear 61,480,000 30,361,000 54,473,000 26,110,000 59,728,000 61,480,000 57,526,000 61,480,000 17 ........... ........... ........... ........... ........... ............ ........... ........... E1V6tl0I IB Construction Grants IS0,000 790,000 19q,00D IB 19 Rees: Connection 1,500,DOD 4,959,000 S,19a,000 5,459.000 1,742,000 25,050,000 34,5ao,000 60,358,000 19 20 Industrial Waste 92D,D0a 11055,000 11217,000 1,399,000 1,605,000 6,203,000 12,475,000 18,678,000 20 21 User Pees i 21 22 Sale of Capacity Rights 11349,000 135,000 135,000 330,000 3,931,000 5,940,000 2,104,000 a,041,000 22 23 Interest 6 Miscellaneous Income 1,256,D00 1,001,000 2,856,000 1,043,000 11156,000 16,318,000 11,505,000 27,823,000 23 24 New Debt 75,000,000 70,000,000 145,000,000 1I5,000.000 24 ........... ........... ........... ... ...... ........... ----------- ----------- ........... 25 TOTAL RBVSHUI 10,815,000 84,159,000 9,406,000 00,291,000 15,138,000 260,109,000 60,564,000 260,693,000 25 ........... ........... ........... ........... ........... I ----------- ----------- ........... 25 TOTAL AVAILABLE FUNDING 72,Z95,000 114,521,000 63,979.000 106,401,000 75,166,000 261,599,000 118,110,000 322,111,000 26 ........... ........... ........... ........... ........... I ----------- -----I..... _...___.___ 11PINDITURES ............ 27 Share of Joint Works Treatment Plant 11,206,D00 40,334,000 33,131,000 31,03,000 13,108,000 135,262,000 12,025,000 207,287,000 27 28 District Onllectica System 19,925,000 4,550,000 515,000 175,000 475,000 25,610,000 9,775,000 35,615,000 28 29 COP Payments 4,198,000 4,164,000 4,1Z3,000 1,D95,000 4,057,000 20,637,000 19,715,000 40,352,000 29 30 Debt Issuance Costs and Reserve 11,000,000 11,000,000 i 12,000,000 22,000,000 30 31 Traasfer to Operating Bond I 31 32 later-District lquity Purchase 521,000 524,000 521,OD0 32 ........... ........... ........... ........... ........... ----------- ----------- ........... 33 TOTAL REPBNDI7UNRS 41,933,000 60,018,000 37,769,000 46,673,000 17.640,000 204,063,000 101.515,000 305,578,000 33 ........... ........... ........... I......... ...... ----------- ________ -- ----------- 31 Reserves 6 Carry-aver to Neat Tear 30,36Z,000 54,471,000 26,110,000 59,723,000 57,526,000 57,526,000 16,595,000 16,595,000 31 35 SMIT (Adjusted for Iater-fund Traasfersl I 35 36 Reserves 6 Carry-over From Last Year 71,550,000 38,759,000 68,852.000 11,520,000 80,077,000 71,550,000 79,420,000 71,550,000 36 37 Total Revenue 21,665,000 101,104,000 381IZ31000 112,152,000 51,404,000 312,022,000 304,701,788 637,529,788 37 ........... ........... I.......... ----------- ........... ----------- ----------- ----------- 31 Total Available Pundltq 93,215,000 141,543,000 107,275,000 156,672,000 132,281,000 404,379,000 381,121,760 709,079,788 38 39 Total erpeaditures 54,456.000 79,091,000 62,755.000 75.795,000 52,861,000 324,959,000 331,929,000 656,687,000 39 10 Reserves 6 Carry-Over to Next year 30,759,000 66,852,000 41,520,000 $0,877,000 79,120.000 71,420.000 52,192,780 $2,192,786 10 II Next fear's Dry Period Puading Requirements 6,262,000 9,SZZ,000 12,493,000 14,561,000 17,611,000 17,611,000 27,536,000 27,536,000 91 12 BOND BALANCE OR (OEFICITI 32,497,000 59,130,000 32,OZ7,000 66,316,000 61.809_000 61.009,000 24,656,788 2R_656_708- 42 Number of New Connections 2,175 2,175 2,115 2,175 10,875 Projected SYR Connection Fee 1 5% AVILA Increases 121280 12,390 12,510 $2,640 11,369 1,959,00C 5,1)8,000 5,559,ODO 5,712,ODO 16,612,000 COUNTY SANITATION DISTRICTS d ORANGE COUNTY. CAUFONNIA November 27, 1989 1� A� Pa W.a," d� iWXfuN vulEv.CWfaPwn 82r299,21 fl,a,H it STAFF REPORT COUNTY SANITATION NO. 2 Long-Range Financial Plan and Implementation of Supplemental User Fee Program PURPOSE Staff has previously advised the Directors that the rising costs of complying with wastewater treatment regulations and other environmental standards, coupled with the limitations of Proposition 13, will require the District to implement a supplemental user fee program effective with the 1990-91 fiscal year to provide the necessary long-range funding and to maintain the District's financial integrity. The purpose of this report is to summarize the actions taken to date and the remaining steps required to implement the District's supplemental user fee program effective July 1, 1990. BACKGROUND For many years the Districts, as part of the annual budgetary process, have forecast revenues and expenditures on a five-year basis, and in 1986, commenced forecasting for a ten-year horizon. For the first time, the 30-year action plan for wastewater management, 82020 VISION°, recently approved by the Directors, included financial projections to the year 2020. The purpose of this long-range financial planning is to assure adequate funding to carry out the Districts' wastewater management program for the benefit of the 24 communities and the two million citizens which the Districts serve in metropolitan Orange County. A major benefit of the long-range cash flow projections is that they enable us to determine well in advance when revenue shortfalls will begin to occur so that the Board of Directors will have adequate time to consider alternative funding sources and take the necessary corrective action to ensure each District's financial integrity. For some time, our projections have indicated that funding shortfalls in District No. 2 would begin to occur as soon as 1990-91 and that the District would have to consider additional revenue sources to meet long-term funding requirements for sewerage facilities improvements and expansion, and ongoing operations and maintenance costs. Property taxes have historically been the major source of local financing of the District's activities. However, the costs of providing service continue to rise beyond the ability of the property tax apportionments to keep pace because of the stringent requirements of the federal and state regulatory- agencies for advanced wastewater treatment and disposal , new air quality requirements, and the need to provide additional capacity to meet the increasing demands on the sewerage system. Y- � November 27, 1989 Page Two The District has the following options available to finance its facilities 'improvements and expansion activities and ongoing operations and maintenance (08M) costs: Funding Requirement Source of Funds Ongoing collection system and - Allocated historical share of 1% ad joint treatment/disposal valorem property tax levy facility operations and - Supplemental user fees: non-industrial maintenance including dischargers rehabilitation - User fees: industrial dischargers Capital facilities improvements - Debt financing (bonds/certificates of and expansion projects participation) - Capital reserve funds (existing) - Connection fees on new development - Capital replacement/improvement fees: non-industrial dischargers - Capital replacement/improvement fees: industrial dischargers In 1986 the Board took an interim step to provide partial capital financing by issuing long-term debt securities in the form of Certificates of Participation (COP's) in the amount of $44,300,000; and authorizing staff to develop a financing plan to meet the District's long-term funding needs. During the 1988-89 and 1989-90 budget process the Board reviewed its long-range financial plan for financing its capital and 08M costs and took the following actions: Operations and Maintenance Financing Determined a financial shortfall was imminent and a need for implementation of a supplemental user fee program to be collected on the property tax bill beginning in 1990-91. Capital Financing Increased connection fee schedules throughout the District to $1,500/residential dwelling unit and $300/1,000 sq. ft. for commercial and industrial property effective January 1, 1989; and to $2,270/residential dwelling unit and $450/1,000 sq. ft. for commercial and industrial property effective January 1, 1990, pursuant to the Action Plan financial consultant's recommendations. PROPOSED USER FEE PROGRAM FOR OPERATIONS AND MAINTENANCE FINANCING The supplemental user fee program is required to avoid deficits in the operating fund which would have been experienced this fiscal year except for a budgeted transfer from the capital facilities fund. �/ November 27, 1989 Page Three Attached is Schedule A, Statement of Projected Cash Flow, which was considered by the Board during the 1989-90 budget process. The schedule includes projected implementation of supplemental user fees effective July 1, 1990 for operations and maintenance and debt service and new borrowing for capital needs as recommended by the 30-year Master Plan Financial Plan. At that time user fees were estimated to begin at $70.00 per year for a single family residence and to escalate to $160.00 per year by 1998-99. Without the supplemental user fees the operating fund was projected to have a deficit of $12,000,000 by June 30, 1991 increasing to $248,026,000 at the end of 1998-99. Revisions to some budgeted estimates and refinements of the user data base are reflected on Schedule B. Current estimates indicate that a user fee of $55.00 per year for a single family residence for 1990-91 with gradual increases to $150.00 per year for 1998-99 will be sufficient to maintain minimum cash balances in the operating fund. To provide the necessary revenues for District operating costs (including capital, replacement) , staff is proposing to proceed with planning and implementation of the supplemental user fee program as set forth below in Table 1. Attached Schedule C reflects the timetable for the implementation plan. TABLE 1 DISTTRT"O. 2 PROPOSED SUPP MENTAL U ER FEE PROGRAM Recommended Annual Charge Effective Class of User Basis of Charge July, 1990 Sin+�le-Fa_mi_lY Annual Charge $55.00 Dwefl�/condominiums per Dwelling Unit Multi-Famil Annual Charge $33.00 Dwellings Apartments/ per Dwelling Mobile Homes Unit Commercial/Industrial/ Annual Charge per $39.00 Other 1,000 Sq. Ft. of Building The basis of the charge and the relationships in this three-tier program are identical to those now in effect in Districts 1, 39 5, 6, 11 and 13. District 7 Is proposing to implement the same program in 1991. Over the years user fee rates have been adjusted in the various Districts. Table 2 shows the original single-family residence rate, the year of implementation and estimated 1990-91 rate. November 27, 1989 Page Four TABLE 2 ALL DISTRICTS SINGLE-FAMILY RESIDENCE ANNUAL SUPPLEMENTAL USER FEE ESTIMATED ORIGINAL YEAR 1989-90 1990-91 DISTRICT RATE IMPLEMENTED RATE RATE 1 $26.40 1985-86 $45.00 $58.00 2 -0- Proposed 90-91 -0- 55.00 3 30.36 1989-90 30.36 50.00 5 26.40 1981-82 45.00 58.00 6 26.40 1983-84 49.00 80.00 7 -0- Proposed 91-92 -0- -0- 11 26.40 1988-89 40.00 75.00 13* 70.00 1984-85 78.40 87.00 14**. -0- -0- -0- District 13 Receives No Ad Valorem Property Taxes ** Financed by Irvine Ranch Water District Once implemented, the user fee amounts should be evaluated by the Board annually to make sure that the program provides adequate revenues to meet the District' s funding needs. The increases shown on Schedule B are only estimates for illustration. SUPPLEMENTAL USER FEE ORDINANCE In accordance with the implementation plan, the next step is the introduction of an Ordinance to adopt the supplemental user fees. Attached as Exhibit 1 is a memorandum from the General Counsel regarding procedures for adopting the Ordinance. If approved, this ordinance is scheduled to be considered by the Board for introduction and first reading at the January 10, 1990 meeting. After publication, the second reading and adoption is scheduled for the meeting on February 14, 1990. The effective date of the Ordinance would be July 1, 1990. PUBLIC HEARING ON PROPOSED COLLECTION OF USER FEE ON PROPERTY TAX BILLS The most cost-effective way to collect the supplemental user fees is on the annual property tax bill . This is the method used by other Districts that have implemented the fees. The attached General Counsel 's memorandum (Exhibit 1) also discusses these procedures. We are required by law to notify every property owner in District No. 2 and to hold a public hearing on our proposed use of the joint consolidated property tax bill to collect the supplemental user fee. We will do this through a public notice that will be mailed in February/March notifying each District 2 property owner of our proposal to use the tax bill to collect the user fee. Staff will ^ conduct a public workshop(s) in March 1990, to discuss this proposed billing and collection method and answer questions. The public hearing date is tentatively scheduled for April 18, 1990. Exhibit 2 is a draft copy of the proposed notice. November 27, 1989 Page Five DATA BASE AND EDP PROCESSING COSTS Implementation of the supplemental user fee requires development and maintenance of a data base of all the parcels within the District by property type, as well as EDP processing of the fees for placement on the County of Orange property tax roll each year. The County Assessor's Office maintains a comprehensive data base of all parcels within the District. The other six Districts which have implemented supplemental user fees have set aside funds each year in their operating budgets to reimburse the County Assessor for the data base maintenance and EDP processing services provided to the Districts to enable them to bill their user fees via the tax roll. First year costs to obtain the data base have not been set by the Assessor's Office but could be as high as $340,000. Annual data base maintenance and EDP processing costs for District 2 in subsequent years are also unknown at this time but are expected to be considerably less as only changes or updates will be purchased. FINANCING CAPITAL FACILITIES REQUIREMENTS Borrowing: In 1986 the Board engaged financial and legal consultants to assist the Directors in evaluating the potential benefits and costs associated with issuance of long-tern debt financing to take advantage of then-favorable tax law provisions and low, tax-exempt municipal bond interest rates prior to an anticipated change in federal tax law which became effective on September 1, 1986. The primary reasons for considering use of long-term debt securities such as certificates of participation for capital construction financing at that time were to: - Provide a partial source of capital financing to meet Joint Works and trunk sewer system facilities construction requirements and necessary capital replacement reserves over the next ten years. - Allow the District to continue to invest its existing capital reserves in the County commingled investment pool managed by the County Treasurer and benefit from the favorable spread between investment returns and the potentially lower rate of interest paid for the securities. - Take advantage of then-favorable tax laws and low capital market interest rates that would be financially beneficial to the Districts. - Help preserve existing' capital reserves for master-planned sewerage facilities construction projects. The recently approved Master Plan Financial Plan recommends continuation of the policy of borrowing for approximately 50% of our capital needs in order to stabilize user fees. The debt will be serviced from a portion of the supplemental user fees. November 27, 1989 Page Six Connection Fees: The other major existing source of capital funds is from a one-time connection fee on new development. These fees are used to finance the planning, design and construction of the expanded facilities necessary to accommodate the flow generated by the new development. District 2' s current one-time connection fees are presented below: Single/Multi-Family Connercial/Industrial/ Dwelling Units Governmental/Other Existing $1,500 per Dwelling $300 per 1,000 Sq. Ft. Effective 1/1/90 $2,270 per Dwelling $450 per 1,000 Sq. Ft. The January 1 increase is a result of the Action Plan financial consultant' s recommendations and reflects a change in the method of computation. Connection fees will be evaluated annually and fixed in an amount that assures that new development pays the current capital cost of providing sewerage services in accordance with Board policy. CONNECTION FEE EXEMPTION FOR LOCAL GOVERNMENTAL AGENCIES In the course of adopting the Wastewater Discharge Regulations during July and August some concern was expressed over the provision that exempts local governmental agencies from connection fees for the capital cost of sewerage systems capacity. Federal and state agencies are charged the capital facilities connection fee in all Districts, but local government is exempt in all except District No. 13. When the Executive Committee considered this issue last year it observed that the Wastewater Discharge Regulations, which include the capital facilities connection fee policy, are adopted separately by each individual District, and that each District has the option of amending its ordinance to remove the capital facilities connection fee exemption for local governing agencies if the District's Board determines that local government facilities place a disproportionate demand on the District' s system. The Committee directed staff to review the policy with each District at the time that it considered its long-range financial plan. Attached as Exhibit 3 is a copy of the existing policy for the Board's review and consideration. IMPACT OF PENDING USER FEE AND CONNECTION FEE STUDY Several of the Directors will recall the concern expressed by members of the public during other user fee adoption processes regarding the "equitability" of our three-tier rate structure. In response to these and other issues staff is preparing a Request for Proposals for a user fee and connection fee study. The purpose of the study is to evaluate the sewer use in Orange County by various user categories and to determine if it would be appropriate to establish more user categories to better reflect use of the sewerage system. The results of the study and the consultant's recommendations will be brought to the Boards November 27, 1989 Page Seven for consideration and approval. It is anticipated that more categories may be added and different ratios proposed. If so staff will prepare revised user fee rates for the Directors consideration at that time. However, until that report is completed and considered by the Board(s) it is imperative that District 2 proceed with supplemental user fee implementation in order to preserve its financial integrity. RECOMMENDED BOARD ACTIONS The staff recommends the Board direct staff to proceed with implementation of the supplemental user fee program in accordance with the revised implementation plan. GGS:sc FIN/DIST.INF89 SR.2.1.1-.7 ` SCHEDk A COUNTY SANITA710H DISTRICT ND. 2 11122199 STATEMENT OF PROJECTED CASH FLOW Page I FISCAL TURNS 1989-90 7HRDUCH 1990-99 LIME 1989.90 1990-91 1991-92 199E-93 1993-94 I 5-tear Total 1194-99 to-Tear Total LIRE .... ------- ------- ....... ------- ....... I ------------ ----------- ------------- ---- OPIRATINC POND I 1 Reserves 6 Carty-Over Pros Last Year 9,366,000 9,416,000 14,210,000 19,072,000 23,651,000 I 9,366,000 24,695,000 9,366,000 1 ........... ........... ........... ........... ........... I ----------- ----------- ........... RIVINOI I 2 Share of I1 Tax Allocatloe 7,943,000 8,635,000 9,386.000 10,204,000 11,100,000 I 41,266,000 71,719,000 119,007,000 2 3 Bees: Industrial Waste 2,252,000 2,590,000 2,978,000 3,425,000 3,939,000 I 15,184.000 30,540,000 (5,721,000 3 4 Suppleeeatil Deer 15,230,000 20,676,000 23,302,000 24,550,000 I 84,058,000 161,649,000 245,701,000 4 5 Interest 6 Xiscelleneous IOcose 666,000 291,000 440,000 689,000 140,000 I 2,933,000 10,140,000 13,073,000 5 6 Transfer frog Capital Fund 4,601,000 4,601,000 4,601,000 5 1 other Reveaue 7 ........... ........... ........... ........... ........... I ----------- ----------- ----------- B TOTAL RIVINUI 15,462,000 24,753,000 33,680,000 37,629,000 40,529,000 I 154,041,000 271,060,000 420,112,000 8 ----------- ----------- ----------- ----------- ----------- i ----------- ----------- ........... 9 TOTAL IVAILA361 FUNDING 24,821,000 36,169,000 47,890,900 56,692,000 64,187,000 I 163,410,000 290,763,000 437,478,000 9 ........... ........... ........... ........... ........... I ----------- ----------- ........... EIPENDITURES ------------ 10 Share Of Joint Works R 6 0 11,232,000 16,298,001 18,165,000 15,231,000 22,029,000 I 90,455,000 161,730,000 259,185,000 10 11 Collection 0ystee X 6 0 and Other Oper. 1,180,000 1,261,000 1,353,000 1,453,000 1,563,000 I 6,110,000 9,892,000 16,702,000 11 12 Interest on Debt 4,400,000 8,800,000 12,350,000 15,900,000 I 41,150,000 79,500,000 120,150,000 12 ........... ........... ........... ........... ........... I ........... ----------- ........... 13 TOTAL SIPRND17URII 15,412,000 21,959,000 21,018,000 13,014,000 39,492,000 I 136,715,000 256,122,000 396,837,000 13 ........... ........... ........... ........... ........... I ----------- ----------- ........... 14 Reserves 6 Carry-Over t0 Next Tear 9,416,000 14,210,000 19,072,000 23,651,000 24,695,000 I 24.695,000 40,641,000 40,611,000 14 15 Nest Year's Dry Period FORBIDS Requireeeots 7,706,000 10,910,000 14,409,000 16,517,000 19,746,000 19,746,000 30,051,000 30,051,000 15 ----------- ----------- ----------- ----------- ----------- I ----------- ----------- ----------- 16 fund Balance or IDWHCitI 1,110,000 3,230,000 4,663,0DO 71141,000 1,919,000 I 4,949,000 9,790,000 9,750,000 16 == I == Projected Single Really Residence Annual User Tee 170.00 $15.00 $105.00 $110.00 1160.00 ----------- ----------- --- ----------- ---_-_-_ SCHEDULE A COUNTY SAII MION DISTBIC-1 NO, 2 11122ihY STATEMENT OF MIMED CASH YLOV Page 2( FISCAL TEARS 1989-90 THROUGH 1998-99 LIVE 1989-90 1990-91 1991-92 1952-93 1993-94 I 5-tear Total 1991-91 10-Year Total LIPS .... ....... ------- ..... ....... ....... I ------------- ---- CAPITAL FUNDS --------------- 17 Reserves 6 Carry-over From Last Year 55,792,000 11,474,000 45,023,000 11.321.000 56,639,000 59,192,000 S1,520,000 59,792,000 17 ........... ........... ........... ........... ........... ............ ........... ........... IIVINUI I 11 Construction Greets 790,000 I 790,000 790,000 IB 19 Fees: Connection 4,909,000 5,144,000 5,395,000 5,646,000 5,939,000 21,033,000 34,500,000 61,533,000 19 20 Industrial Waste 920,000 1,058,000 1,217,000 1,399,000 1,609,000 6,203,000 12,175,000 10,678,000 20 21 Supplemental Viet 21 22 Sale of Capacity Rights 1,349,000 135,000 135,000 390,000 3,931,000 I 5,940,000 2,104,000 8,041,000 22 23 Interest a Miscellaneous Jocose 2,526,000 2,001,000 2,060,000 2,480,000 3,834,000 12,911,000 9,310,000 22,221,000 23 21 Rev Debt $8,000,000 11,000,000 159,000,000 151,000,000 21 ........... ........... ........... ....... ... ........... ----------- ----------- ......._.._ 2S TOTAL IIVIWUR 10,494,000 56,340,000 8,815,000 60,911'800 15,113,000 211,817,000 $0,369,000 270,266,000 25 ...._...... ........... ........... ........... ----------- ----------- --......... 25 TOTAL AVAILAILI FUNDING 70,206,000 107,811,000 53,810,000 94,236,000 71,952,000 I 271,669,000 109,909,000 330,050,000 26 ........... ........... ........... ........... ........... I ----------- ----------- ........... 11PIMDITUIBS ----------- IF Share of Joist Worts Treatment Fluor 29,564,000 41,017,000 35,879,000 22,327,000 15,510,000 114,747,000 71,968,000 216,715,000 27 28 District Collection System 11,925,000 1,5S0,000 SIS,000 175,000 415,000 25,640,000 9,775,000 35,415,000 28 29 COP Payments /,196,DOD 4,164,000 1,123,000 4,095,000 1,051,000 20,637,000 19,116,000 10,353,000 29 30 Debt Issuance Costs and Reserve 13,000,000 II,000,000 I 24,000,000 24,001,000 30 31 Trsasfer to Operating Fund 1,601,000 4,601,000 4,601,000 31 32 Other lspeaditurea 524,000 524,000 524,000 32 ........... ........... ........... ........... ........... I ___________ ----------- _........._ 33 TOTAL IIPIWDITUIIS 58,612,000 62,791,000 40,517,000 37,597,000 20,132,000 I 220,149,000 101,159,000 321,608,000 33 ____....... ___________ ___________ ___________ -----_---__ I ----------- ----------- ........... 31 Reserves a Carry-aver to Nest Year 11,474,000 A5,023,000 13,321,000 56,639,000 51.520,000 I 51,5E0,000 8,450,000 B,1S0,600 31 SUMMIT IAdjusled for Iotel-Fued Transfers) I 3S Reserves 6 Carry-Over From Last Year 69,158,000 20,090,000 59,233,000 32,393,000 90,297,000 I 61,158,000 76,215,000 69,158,000 35 36 Total Revenue 21,355,000 123,053,000 12,495,000 118,535,000 55,812,000 I 361,320,000 332,151,000 693,717,000 36 ........... ........... ........... .....'----- _.......... I ----------- ----------- ----------- 37 Total Available Funding 90,513,000 143,983,000 101,726,000 150,928,000 136,139,000 I 130,478,000 108,672,000 762,935,000 37 31 Total Expenditures 69,623,000 81,750,000 69,335,000 70,631,000 59,121,000 I 354,263,000 159,581,000 713,844,000 38 ........... ........... ........... ........... ........... I ----------- ----------- ----------- 39 Reserves 6 Carry-Over to lest Year 20,890,000 59,233,000 32,393,000 80,297,000 76,215,000 I 76,215,000 49,091,000 15,001,000 39 10 Next Year's Dry Period Funding legeireseots 7,706,000 10,910,000 14,409,000 16,517,000 19,746,000 I 19,746,000 30,851,000 30,851,000 10 ........... .......... ........... ........... ........... I ----------- ----------- ----------- 11 PUAD BALANCE OR 1DIFICITI 13,184,000 40,253,000 17,981,000 63,780,000 56,469,000 I 56,469,000 18,210,000 18,240,000 11 ........... 1'.41 A ( SCHED( B COUNTY SANITATION DISTRICT NO. 2 11/21/09 STATEMENT OF PROJECTED CASH Flow Page 1 FISCAL YEARS 1989-90 THROUGH 1998.99 LINE 1989-90 1990-91 1991-92 1912-93 1993.94 I 5-Year Total 1994-59 10-Tear Total LINE .... ....... ....... ------- ....... ------- I ------------ ----------- ------------- ---- OPERATING FUND I -------------- I I Reserves 8 Carry-Over from Last Year 10,010,000 10,172,000 13,261,000 15,708,000 19,117,DDO 10,070,000 20,370,000 10,070,000 1 ........... ........... ........... ........... ........... ----------- ----------- ........... BURUNDI I 2 Share of It Tar Allocation 7,943,000 8,635,000 9,386,000 10,204,000 11,100,D00 47,261,000 71,739.000 119,007,000 2 3 fees: Industrial Haste 2,252,000 2,590,000 2,978,000 3,423,000 3,939,500 I 15,161,000 30,140,000 45,724,000 1 4 Supplemental User 13,170,000 16,531,000 22,133,000 25,143,DOO 79,571,000 167,886,000 241,463,000 / 5 Interest 6 Miscellaneous Income 118,000 153,000 370,000 141,000 511,000 2,393,000 9,700,000 12,093,000 5 6 Transfer from Capital fund 1,601,000 I 4,601,000 4,601,000 6 7 Other Revenue I 7 ........... ........... ........... ........... ........... ........... ........... ........... 8 TOTAL REYBNUE 15,514,000 25,040,000 31,265,000 36,503,000 40,693,000 I 119,023,000 279,66S,000 421,066,000 8 ........... ........... ........... ........... ........... I ........... ----------- ........... 9 TOTAL BEATUBLB FUNDING 25,504,000 35,220,000 44,526,000 S7,211,000 51,070,000 I 159,D93,000 300,243,000 139,958,000 9 SIFIRD17URIS I ............ I 10 Share of Joint works M 6 0 14,232,000 16,298,000 16,665,000 19,231,900 22,029,000 I 90,455,000 [61,730,000 159,105,000 10 11 Collection System N 6 0 and Other Oper. 1,100,000 1,261,000 1,3S3,000 1,453,000 1,563,000 I 6,910,000 1,652,000 16,702,000 11 12 Interest an Debt 4,400,000 6,800,000 12,350,000 15,900,000 I 41,450,000 19,500,000 120,550,000 12 ........... ........... ........... ........... ........... I ........... ........... ........... 13 TOTAL BIFBNDITUBAB 15,112,000 21,959,000 26,819,400 33,034,000 39,492,000 I 138,715,000 258,122,000 396,837,000 13 ----------- ----------- ----------- ----------- ----------- I ----------- ----------- ----------- 14 Reserves 6 Carry-Over to Next fear 10,172,000 13,261,000 15,708,000 11,117,000 20,376,000 I 20,370,000 42,121,000 42,121,000 14 15 Next fear's Dry Period loading Requirements 7,706,000 10,980,000 14,409,000 16,517,000 19,746,000 I 19,746,000 30,851,000 30,051,000 15 ----------- ----------- ----------- ----------- ----------- I ----------- ----------- ---------. 16 Fund Balance or (Deficit) 2,466,000 2,281,000 1,299,Oo0 2,560,000 632,000 I 532,000 11,270,000 11,270,000 16 :::::::: ::::::.... ........... ........... I _::::::::: Equivalent Dwelling Units 244,901 247,075 249,250 251,425 262,300 Single family Resldeace Annual User fee 1S5 175 $50 1100 $150 Annual Supplemental User Pees 13,410,000 18,531,000 22,433,000 25,143,000 39,345,000 SCHEDULE B COUNTY SANITATION DISTRICT 10, 2 11/11/89 ATAIRNINT OP PIOJICTID CASH fm Page 2 FISCAL TZARS 1989.90 THROUGH 1199.99 1919.90 1990.11 1191.9E 199E-93. 1953.94 I 5-Tear Total ID91.11 10-you Total CAPITALRUNGS ....... ....... ....... ....... ....... I ------------ ----------- ------------- _______________ 17 Reserves 6 Carry-ever From Last Year 61,1110,000 13,286,000 47,001,600 15,501,000 59,050,000 I 61,110,010 54,171,010 61,110,000 11 ........... ........... ........... ........... ........... I ----------- ........... RIVINOI IB Construction Greats 196,000 I 790,000 790,000 11 19 lees: Connection 4,909,000 5,183,000 5,112,000 5,714,000 4,000,000 I 27,241,000 34,500,000 61,741,000 19 2D Industrial Haste 920,000 1,058,000 1,217,000 1,199,400 1,609,000 I 6,203,000 12,475,000 11,616,000 21 21 Supplemental User 1 21 22 sale of Capacity Rights 1,319,000 135,000 135,000 390,401 31911,001 I 5,910,000 2,104,000 1,041,000 22 23 Interest 6 miscellaneous Income 1,650,000 2,137,000 2,216,010 2,643,001 4,013,000 I 13,659,000 10,281,000 23,911,0oo 21 21 mum Debt 06,000,000 71,000,000 I 111,600,000 150,000,000 21 ........... ........... ........... ........... ........... I ........... ........... ----------- 25 TOTAL IININUS 10,611,000 96,313,010 9,510,000 61,146,001 13,353,000 I 212,110,600 $9,364,000 272,201,OB0 25 ........... ........... ........... ........... ........... I ........... ........... ........... 26 TOTAL ATAILARLI FUNDING 72,090,000 100,799,000 56,011,000 96,617,000 74,603,000 I 214,320,000 113,535,000 333,684,000 26 ........... ........... ........... ........... ........... I ........... ........... ........... RIPRNDITURIA I ......-..-.. 27 Share at Joint Usrks Treatment Plant 25,564,000 41,077,000 35,119,000 12,327,000 11,900,000 I 111,747,000 71,966,000 216,715,400 27 28 District Collection system 19,921,000 1,350,0oo 515,600 175,000 475,000 I 25,640,000 1,775,000 15,415,000 21 29 COP Payments 11198,000 4,164,000 1,113,000 4,095,000 4,057,000 I 20,617,000 11,716,000 10,353,000 29 30 Debt Issuance Costs and Reserve 13,000,000 11,000,000 I 24,000,000 24,000,000 30 31 Transfer to operating Fund 1,601,000 I 4,601,000 4,601,000 31 32 Other Ixpeaditures 324,000 I $E1,000 521,000 12 ........... ........... ........... ........... ........... I ........... ........... ........... 33 TOTAL 11PINOITURIS 50,012,000. 62,791,000 40,517,000 17,$97,000 20,432,000 I 220,149,000 101,459,010 321,601,000 13 ........... ........... ........... ........... ........... I ----------- ........... ----------- 31 Reserves A Carry-over to Neu Tear 13,284,000 17,019,000 15,501,000 59,050,000 54,111,000 I 51,171,DOO 12,076,000 12,076,000 31 ............ ..... sac......... ............ sa:........ I .:..-:.-.-- .-ss..... ........... ......... ............ . ... ..... .... ... SUNDART (Adjusted for Inter-lund Tnnsfere) I 3S Reserves a Carry-Over Prom List Year 71,550,000 23,158,000 . 60,269,000 31,209,000 70,227,000 I 71,510,000 71,519,010 71,550,000 35 36 Total Revenue 21,511,100 121,561,040 10,215,000 117,619,000 $6,214,000 I 351,261,000 339,220,000 606,411,000 16 ........... ........... ........... ........... ........... I ........... ........... ----------- 31 Total Available leading 93,001,000 145,019,000 100,$11,000 148,850,000 134,473,060 I 121.612,010 413,771,000 761,OI1,000 37 39 Total expenditures 69,623,000 11,750,900 69,335,000 70,631,000 59,924,000 I 151,263,000 359,511,000 713,114,900 31 ........... ........... ........... ........... ........... I ........... ----------- ----------- 39 Reserves a Carry-Over to Next year 23,151,000 60,269,000 31,205,000 78,221,000 74,519,000 I 74,549,000 54,117,108 54,117,000 39 ID Next Tear's Dry Period Pending Requirements 7,706,000 10,900,000 14,409,000 16,517,000 19,716,000 I 11,146,080 30,151,101 31,851,000 10 ........... ........... ........... ........... ........... I ........... ........... ........... 11 FUND BALANCE OR (DIPICITI 15,752,000 49,289,000 16,800,000 61,710,000 54,003,000 31,803,000 23,346,000 23,346,000 41 USER FEE IMPLE14ER1ARIOR SCHEDULE SMEOULE C Pax 1 11/27/89 JUL-RM M DECEIBER 89 JAXUARY BO FEBRUARY 90 mm 90 APRIL 90 JUL-Aw w cAgreve 89-90 Bungets Raetw long-r.nge C ddatldu Ixs lecrxsed Second reeding and Conduct public heerIM Flwatlal Plen end w $22J0/du.lisng unit aM senption of supplwen n use of to bill w do lure 1ntxL w {A50/1000 ad. ft. has user fee ordinancecollect user fees - ast.bllsh YSer Ms .Rattles 1/1/90 eswbi stale, 1990-91 018/90 Adjourned a or 1990-91/agrew user Ix schedule shating r� 1glwnwti0n Introduction and /lrst 2111/x Schedule I2/I]/B9 rwtllng o1 ordlnanga R.c.I,.and file a." wtabllshlng suppl e.wwl fee report descriesng user fee proposal effect, prgarty a fee to be Jul I 19w 1/10/90 ieVled - 4 /181W Adjourn, Mxtl Adgt resolution epproOng billing and col lxtlon notled/user Tee report - 4/18/w Aef.ureoul flowtins on Crww CSOOC duw bay. Produce 1BgD-Bl Ilst Coordlwt. outstdu prtnLt Couxuct pubite sark5hq R.I. Bq pratws o for SFRIIfR/Mn- of parcels//xs for 8 will of ngticas output frx haw rasltlontlal bulltll 5 user fw rgart. to base/research 8 s N rue correct ucgttons/ gwta cash flow Praise 19x-Bl auto atal turn In final tope ta- co attions/ Ire.xt user lea report/public County Auditor for u, rorkshq slldu ihw (am1ON-91 tax b11is backgrouM &te) and public veering egeew/handouts/ draft Manger's report for norkshess and hosring Contloue l research antl dw.lopewt of CSCCC dew bee. EXHIBIT 2 COUNTY SANITATION DISTRICT NO. 2's .40TIGE OF PUBLIC HEARING NOTICE OF PUBLIC HEARING Notice is hereby given pursuant to California Health and Safety °ram fee. This fee has been set at$55 per year($4.58 a month)for r^de Section 5473.1 of a public hearing to be held by County residences, $33 per year for apartments and mobile homes, and Ration District No. 2 of Orange County, California at 7:30 $.39 Per 1,000/sq.R.of building space per year for commercial and industrial customers with larger discharges. User fees are not �IrNl.ort Wednesday,April B, 1990 at used for new development. Fees for now development are paid for by the developer connecting to the sewer system. Said hearing is to be held for the purpose of reviewing written Our ongoing goal is to maintain effective and efficient wastewater reports pertaining to the providing of sewer service for all management services.The challenges we must continually face are properties within County Sanitation District No. 2, and to con- increasing service demands as population grows,and increasingly sider public comments regarding use of the County of Orange stringent environmental regulations.The fire schedule reflects the property tax roll for billing of District sewer service Charges for immediate financial needs of your District,and will be reviewed sewer collection,treatment and disposal services for the fiscal and adjusted ea needed to continue protecting public health and year commencing July 1, 1990. our precious environment. PROPOSED BILLING AND COLLECTION METHOD LW anger.County S Q.qMp County Sanitation District No. 2 is proposing to collect its sewer { •'y�My service user fee ns a separate line item on the annual property tax bill. Uxofthismora cost-effective alternative method wouldallow n y pq`'1 the Districts and its customers to save the cots of producing, mailing and handling separate utility bills for direct payments. l a e o Every property owner within the District receives an annual �\ property teat bill from the County Tax Collector. California Health • and Safety Code Section 5473 allows the District to place our sewer owasa o.a,.e user tee on this bill as a separate as item,thus providing the user f+ with the convenience of including payment for District No. 2 sewerage service with property tar payments. �b �a s Therefore,effective with the billing year beginning July 1, 1990, 01. . the Board of Directors of District No. 2 is proposing muse this billing method to help keep the cot of service down. The above tq r noticed public hearing is to consider the proposal to use the property tar bill to collect the annual sewer user fee instead of a q^y separate direct and morn costly billing method. FURTHER INFORMATION/PUBLIC WORKSHOPS The question and answer section of this notice attempts to address same of the questions you may have.In addition,three workshops have been scheduled where staff will provide more detailed information and will he available to answer any additional Wastewater from your home or business is collected by your local questions(sce back side of mailer for locations). street sewer system,which Is maintained by your city or sanitary district. The street sewers flow into large intercepter sewers in your area owned by County Sanitation District No. 2. District No. 2, the shaded whoa of the map,is am of nine Districts that make up the DISTRICT NO.2 County Sanitation Districts of Orange County, OPERATING FUND which serve the metropolitan area of the w county.These Diatrictsjointlyown and operate RESERVESh DEFICIT PROJECTION /'— the regional sewage treatment plants in as / Fountain Valley and Huntington Beach. The ExPENSEs Sanitation Districts are charged with 30 / protecting public health and the environment. M GFIFIY R 8 naVENUE I The Sanitation Districts operations are t 2$ �~ regulated by federal and state environmental 20 _ \ DEFICIT agencies. In recent years, these agencies haves 0 RESERVES \ adopted and imposed more stringent laws and N regulations to protect our environment. Ica is ,� �,� adder to comply with the new regulations, ,new $ advanced sewage treatment facilities, coating REVENUE F 4rods of millions of dollars, have been ructed. The additional facilities have It r>ElEted in increased operating cots. 0 Rising costa and decreasing reserves were 87-as a&89 89.80 90.91 91-92 92-93 93-94 forcing District No. 2 into a financial crisis by FISCAL YEAR 1990 (sce graph). To continue providing the high level of service you are amutomed in, District No.3 recently adopted a sewer service QUESTIONS and ANSWERS 03 Irian 1. 0 What If I feel I should be exempt from the 5, Q Is this money to be used for expanding C (n charge? Ihesystrn to accommodate more y3 T, • If your property isn't connected to the local growth?sewer system,you are exempt.Simply • No.New sewer lines are funded by 9' 9l b attach a copy of your lac bit[to substantial connection fees paid by o a letter of explanation and mail It to the developers of new construction projects =� m Orange County Sanitation Districts,Box that are connected to the sewer. Q 8129,Fountain Valley. CA 6. Q Can one district tunow from another D do u 92T2a-B12?. adjacent district that may be more 2. 0 1 already pay a charge for sewer Service financially gable? N g on my water bill.Is this a duplicate A No.Each of the districts Is a separate O charge? entity.The money belongs to the IP Nj A No.The sewer service charge you now property owners of that district alone m M, pay is for your connection to the local and cannot De lam to other dislikes. m .Nj fly greet sewers operated and maintained ]. Q crease that antler Proposition 13 any by the dryer a local sanitary tlo Me Increase in loxes required verer Their sewer system contracts to Ole approval. District No.2 trunk sewer system.The Using No.2 fee will be used to pay for A The user lees do not require a vole I9 Me D'sldct's regional Most sewers and Inter Proposition 1luti3. n a fee for use. the regional treatment and disposal regulrlol a lax.Water aced by control facilities located in Fountain Valley and Encino mental Protection the Huntington Beach that transport and and Statee eat Protection Agency(EPA) beat and safely dispose of your and State health laws require us to wastewater. meet certain public health stantlards. The lees will provideequire funds to tligcw 3. O I already pay a charge to your ri on meet these mandated requirements, my tax bill.Why another charge? protect the heath of the public and keep A The charge you currently pay on your tax our waters clean. bill is for repayment o1 bonds sold many 8. 0 Are there other ways to collect these years ago to pay for construction of fees without putting them on our tax Some of the facilities you are now using. Nip The new charges will pay lot operating, A Yes.The Districts could establish maintaming and rehablbwting the Separate direct billing and collection existing sewerage system wcililies. systems.The cog of operating such 4. Q What do you mean by rehabilitation? fulling systems would increase the lees • Many segments of the sewer system were 15 to 20 percent lot the average constructed more than 30 years ago homeowner. and may deteriorate as they grow older. We can extend the Isle of the pipes, uywhave questions or wish further information, X thereby avoiding replacement, p1.call the Sardmtion Dlstridd oQim at Iby making Improvements to the existing (714)915 11,FIdension 5. lines and pump stations. WORKSHOP NO.1 PUBLIC HEARING y+y+++,��� Wednesday,April 19,1990,7.30 pm c1 WORKSHOP NO.2 EXHIBIT 3 EXCERPT FROM WASTEWATER DISCHARGE REGULATIONS ..r ARTICLE 7 CONNECTION PERNIITS/CAPITAL FACHMES CONNECTION CHARGES 701. INTROD=ON - ALL DISTRIM A. Convection permits may be required of dwelling units, buildings and developments connecting directly or indirectly to District's sewerage facilities. Included are the connections of laterals to local municipal sewerage facilities and the connection of local municipal sewerage facilities and laterals to District's facilities B. No permit shall be valid unless the real property to be served by use of the permit is included within the boundaries of the District and within the boundaries of a local sewering agency authorized to maintain public sewering facilities However, a permit may be issued for property to be served outside the boundaries of a local sewsring agency If a loci sewering agency makes application for the issuance of such permit. C. Except as may be provided by an individual District, there will be no capital facilities connection charges assessed to local government agencies for connecting directly or indirectly to District's sewerage facilities; however, a connection permit must be obtained. D. Payment of capital facilities connection charges for connection to District's sewerage facilities shall be required at the time of issuance of the building permit for all construction within the District, excepting in the case of a building legally exempt from the requirement of obtaining a building permit The payment of the sewer capital facilities connection charge for such buildings will be .required at the time of and prior to the issuing of a plumbing connection permit for any construction within the territorial limits of the Disrict. E. A schedule of charges specified herein will be on file in the office of the Secretary of the District and in the Building Department of each City within the District. 57 ORDINANCE NO. 210 `....� AN ORDINANCE OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 2 OF ORANGE COUNTY, CALIFORNIA, ESTABLISHING SANITARY SEWER SERVICE CHARGES The Board of Directors of County Sanitation District No. 2 of Orange County, California, does hereby FIND: A. That a Comprehensive 30-year Master Plan of Capital Facilities entitled "Collection, Treatment and Disposal Facilities Master Plan - 198911, hereinafter the "Master Plan" , which includes detailed financial and engineering reports, has been prepared, approved and adopted by the Board of Directors setting forth and identifying the required future development of District and . jointly-owned facilities, including the financial projections for providing sewer service to all properties within the District service area; and, B. That the financial and engineering reports of the Master Plan have been made available to the public and been subject to noticed public hearings, all in accordance with the provisions of Government Code Section 54992 and other provisions of law; and, C. That the revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, reconstruction, maintenance and operation of the sewage collection facilities, wastewater treatment and disposal facilities of the District; to repay principal and interest on debt instruments or to repay Federal or State loans issued for the construction and reconstruction of said sewerage facilities, together with costs of 1 . Li vt administration and provisions for necessary reserves; and, _ D. That the properties upon which the fees established by this Ordinance are levied, discharge wastewater to the District's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities has constantly increased due in part to increased regulatory requirements to upgrade the treatment process, and said costs now exceed the amounts of any ad valorem tax revenues received from said properties; and, E. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety to preserve the environment without damage; and, F. That the new 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; and, G. That the change in rate structure will not necessarily result in an expansion of facilities to provide for growth outside the existing service area. The adoption of these rates will not result in any specific project nor result in a direct physical change in the environment; and, H. That the District has, on July 19, 1989, adopted a Final Program Environmental Impact Report in accordance with legally required notices and public hearing, relating to the Master Plan, including the financial program; and, I. That the proposed increases in the sewer service charges 2 are established upon a rational basis between the fees charged each �./ customer and the service and facilities provided to each new customer to the District; and, J. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act from further environmental assessment pursuant to the provisions of California Public Resources Code Section 21080 (b) (a) and California Code of Regulations Section 15273 (a) . NOW, THEREFORE, the Board of Directors of County Sanitation District No. 2 of Orange County, California, does hereby ORDAIN: Section 1: Purpose. The purpose of this Ordinance is to establish a system of sanitary sewer service charges required to be paid by property owners for the services and facilities furnished by the District in connection with its sanitation treatment works and sewage collection system. Revenues derived under the provisions of this Ordinance shall be used for the acquisition, construction, reconstruction, maintenance and operation of the sewage collection facilities, wastewater treatment and disposal facilities of the District; to repay principal and interest on debt instruments or to repay Federal or State loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. Section 2: Annual Sanitary Sewer Service Charge. Commencing July 1, 1990, each parcel of real property located within the District which is improved with structures designed for 3 residential, commercial or industrial use and connected to the District' s system, shall pay a sanitary sewer service charge based on the average volume of wastewater discharged by a class of users in the sum or sums as set forth in Table A of this ordinance. section 3 : Application of ordinance. The provisions of this ordinance shall be in addition to Ordinance Nos. 208 and 209 and Resolution Nos. 89-110-2 and 89-128-2 of the District establishing regulations for use of District' s sewerage facilities, including provisions for payment of charges or fees related thereto. Section 4: Exceptions. The provisions of this Ordinance shall apply to all properties in the District, and no exception shall be provided for properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax exempt organizations, except as expressly provided in Section 5 hereof. Section 5: Exemptions and Appeals. In recognition that certain legal parcels of real property exist within the District which are not connected to the District system and that other properties acquire considerably greater potable water than is ultimately discharged to the District' s system, it is the intent of the District that said parcels be exempt totally or in part from the payment of charges as prescribed herein. Any property owner may appeal the assessment of the charges and submit a claim for rebate to the District on the forms prescribed and provided by the District, within one hundred twenty 4 (120) days after the annual bill is mailed. All applications for rebate of the annual sewer service charge will be determined by the General Manager of the District or his designee, who may grant a partial or full rebate or adjustment of the charge based on receiving satisfactory proof that an inequity exists between the amount and the amount of wastewater discharged to the District's system. Such inequities may include, but are not limited to, the following instances: (a) The use of the parcel differs from the use indicated by the charge; (b) No service connection to the District's system exists from the parcel charged; (c) The principal water use is agricultural; (d) Any other use wherein .the amount of wastewater discharged to the District's system is significantly less on a regular basis than the amount that would normally be expected to be discharged by the class of property in question. Section 6: Annual Charge Based on Fiscal Year. The sanitary sewer service charge established by this Ordinance shall remain in effect until such time as the rates adopted by the District Ordinance are changed, and there shall be no proration of such charges in any fiscal year. Section 7: Method of Collection. Pursuant to the authority granted by California Health & Safety Code Section 5473, all charges established herein shall be collected on the County Tax Roll in the same manner, by the same persons and at the same time 5 as, together with and not separately from, its general taxes. The County Tax Collector is authorized and hereby ordered to make said collections in accordance with the terms and conditions of agreements between the County of Orange and this District. In the event the District determines that errors or inequities exist in the amount of charges to be collected by the County Tax Collector, District may submit a bill for any difference directly to the property owner. Said invoiced amount shall be due and payable within thirty (30) days of invoice date. Section 8: Credit for Industrial Permittees. A credit shall be allowed to all dischargers permitted pursuant to Article 3 of Ordinance No. 208 in an amount equal to the annual sanitary sewer service charge established by Section 2 of this Ordinance in the same manner as credit is allowed for ad valorem taxes pursuant to Sections 302.6(B) , 303 .6 (B) , and 304. 6(B) (4) of Ordinance No. 208. Section 9: Severability. If any provisions of this Ordinance or the application to any person or circumstance is held invalid by order of court, the remainder of the Ordinance or the application of such provision to other persons or other circumstances shall not be affected. Section 10: Effective Date. This Ordinance shall become effective July 1, 1990. Section 11: 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. 6 PASSED AND ADOPTED by the affirmative vote of greater than two-thirds of the Board of Directors of County Sanitation District No. 2 of Orange County, California, at a regular meeting held February 14, 1990. Chairman of the BoaZd off irectors County Sanitation istrict No. 2 of Orange County, California ATTEST: Secretary o the Board of Directors County Sanitation District No. 2 of Orange County, California TABLE A Class of Basis of 1990-91 Minimum Annual User Charge Annual Rate Charge Per Unit Single-Family Charge per $55.00 $55. 00 Dwellings/ Dwelling Unit Condominiums Multi-Family Charge per $33 .00 $33 . 00 Dwellings/ Dwelling Unit Mobile Homes/ Apartments Commercial/ Charge per 1,000 $39. 00 $39. 00 Industrial/ square feet of Other building (government buildings, utilities, nonprofit organizations, etc. ) UNrf SANITATION DISTRICT NO s NOTICE OF PUBLICHEARING NOTICE OF PUBLIC HEARING Notice is hereby given pursuantto California Health and Safety naer fee. This fee has been set at$55 par year 4$4.58 a month)for Code Section 5473.1 of a public hearing to be held by County residences, $33 per rear for apartments and mobile homes, and Sanitation District No. 2 of Orange County, California at $39 per 1,000/sq.ft.of building space per year for mmnowdaland '0 p.m.on Wednesday,April 18, 1990 at the Orange Public industrial customers with larger discharges. User fees are not Crary,located at 101 North Center Street,Orange,California. 1 by developer connecting to he sews new development are paid for by the developer mnecting to the sewer system. Said hearing is to beheld for the purpose of reviewing written reports pertaining to the providing of sewer service for all Our ongoing goal is to maintain effective and efficient wastewater properties within County Sanitation District No. 2, and to con- management services.The challenges we mustcontinuallyface are sider public comments regarding use of the County of Orange increasing service demands as population grows,and increasingly property tax roll for billing of District sewer service charges for stringent environmental regulations. The fees reflect the sewer collection,treatment and disposal services for the fiscal immediate financial needs of your District, and will be reviewed year commencing July 1, 1990. and adjusted as needed to continue protecting public health and our precious environment. PROPOSED BILLING AND COLLECTION METHOD Lin Angeles County � County Sanitation District No. 2 is proposing to collect its sewer service new fee m a separate line item on the annual property tax hill. Ureafthismoremet-effectivealternativemethodwouldallow the Districts and its customers to save the coats of producing, Rivwac° `; e^'i 9�ea mailing and handling separate utility bills for direct payments Every property owner within the District receives an annual ° property tax hill from the County TascCollectar. California Health and Safety Code Section5473 allows the District to place oursewer uscurfeeon this bill as separate line item,thus providingthe ser Garen Drove a with the convenience of including payment far l District No. 2 / sewerage service with property tax payments. 4,t+ Therefore,effective with the billing year beginning July 1, 1990, a DI v the Board of Directors of District No. 2 is proposing to use this billing method to help keep the cost of service down. The above v noticed public hearing is to consider the proposal to use the prosepaarrattee detect and more costly billing method. tax bill to collect the annual seww ar Cee instead of a FURTHER INFORMATION/PUBLIC WORKSHOPS The question and answer section of this notice attempts to address some of the questions you may have.In addition, two workshops have been scheduled where staff will provide more detailed information and will be available to answer any additional Wastewater from your home or business is collected by your local questions(see back side of mailer for locations). street sewer system,which is maintained by your city or sanitary district The street sewers flow into large interceptor sewers in your area owned by County Sanitation District No. 2. District No. 2, the shaded area of the map,is one of nine Districts that make up the DISTRICT NO.2 County Sanitation Districts of Orange County, OPERATING FUND which serve the metropolitan area of the m county.These Distridejointlyowuandoperate RESERVES& DEFICIT PROJECTION the regional sewage treatment plants in s5 Fountain Valley and Huntington Beach. The EXPENSES Sanitation Districts are charged with 30 protecting public health and the euviromment. M CPRRYOVER&REVENUE I The Sanitation Districts operations are regulated by federal and state environmental L DEFICIT agencies.In recent years,these agencies have p 20 adopted and imposed more stringent laws and N RESERVES regulations to protect our environment. In $ i5 order to comply with the new regulations,new advanced sewage treatment facilities,mating 10 EXPENSES REVENUE hundreds of millions of dollars, have been structed. The additional facilities have 5 lted in increased operating costs. Biding msts and decreasing reserves were 87-M 888 89.90 9 91 91-M 92-93 93-94 forcing District No. 2 into a financial crisis by FISCALYEAR 1990 (see graph). To continue providing the high level of service you are accustomed to, District No.2recently adopted a sewer service QUESTIONSnANW)ERS m �a q. O Whet H I teal I should be exempt from the 5. O Is This money to be used for expanding N charge? the system to aCcommodale more 3 A If your property Isn't connected to the local growth? 3 B sewer system,you are exempt.Simply A No.New sewer fins are funded by w < 'OO attach a Copy of your tax bill t0 substantial connection lees paid by .a le O a letter of explanation and mail It to the developers of new construction projects =� Orange County Sanitation Districts,Box that are connected to the sewer.do �. 8127,Fountain Valley, CA S. O Can one district borrow from another Dm A 92]28.912]. adjacent district that may be more re m N 2. 0 1 already pay a charge for sewer service financially stable? N J a on my water bill.Is this a duplicate A No.Each of the dialects is a separate O charge? enmity.The money belongs to the A No.The sewer seance charge you now popery owners of that district alone pay Is for your connection to the 1=1 And Cannot be lent to other districts. m street sewers operated and maintained O p 7. O I thought that antler Proposition 13 any by the city or a local sanitary district. increase in taxes required voter ,. Their sewer system connects to the approval. District No.2 trunk sewer system.The A The user fees do not require a vote District No.2 fee will be used to pay for under Proposition 13.It Is a lee for use, the District's regional trunk sewers and Me regional treatment and disposal not a tax.Water pollution control facilities located In Fountain Valley and regulations mandated by the 6 Huntington Beach that Irensport and Environmental Protection Agency(EPA) Oeal and safety tlisposa of your and State health laws require us to Vealewaler. meet certain public health standards. 3. O The fees will provide sufficient funds to I already pay a charge to your dialects on my tax bill.Why another charge? meet t se mandated requirements, poled led the health OI the public and keep 9' A The charge you currently pay on your lax our waters clean. bill Is for repayment of bonds sold many g, 0 Are there other ways to collect these years ago to pay for construction of leas without pubing them on our tax ra same of the facilities you are now using. bill? The new charges will pay for Operating, i"..a°Tv4 maintaining and rehabilitating the A yes.The Districts could establish ection existing sewerage system facilities. syaemse The cog direct 11of operatinng and g such 4. 0 What do you mean by rehabilitation? billing systems would increase the fees A Many segments of the sewer system were 15 to 20 percent for the average constructed more than 30 years ago homeowner. and may deteriorate as they grow older. We can extend the life of the pipes. Ifyou have questions or.vh further information, thereby avoiding replacement, please Call vie Sanitation Diwigd oliim at d by making Improvements to the existing (714)MZ2411,Exlcruion 5. fins and pump stations. t WORKSHOP NO.1 WORKSHOP NO.2 Fullerton Museum Center Becks Building 301 North Pomona Avenue 201 North Bradford City of Fullerton Oty,of Placentia TUESDAY,MARCH 13,1990 7:30 PM THURSDAY,MARCH 22,1990 7:30 PM wan � � hhge PUBLIC HEARING 'a ^y Orange Public Library 101 North Center Street ' City of Orange WEDNESDAY,APRIL 10,1990 7:30 PM a "s 4-18-90 CHAIRMAN'S STATEMENT TO OPEN THE FLOOR FOR ORAL PUBLIC COMMENT (AGENDA ITEM NO. 3 (a) (5) ) LADIES AND GENTLEMEN , I TRUST AND HOPE THAT YOU HAVE FOUND THE PRESENTATION BY THE DISTRICTS' STAFF TO BE TRULY INFORMATIVE. IT HAS BEEN OUR EXPERIENCE THAT MOST RESIDENTS OF THE COUNTY DO NOT HAVE INFORMATION OR KNOWLEDGE CONCERNING THE IMPORTANCE OF THE ROLE THAT THE COUNTY SANITATION DISTRICTS PLAY IN THE LIVES OF THE MORE THAN TWO MILLION RESIDENTS OF ORANGE COUNTY . YOU HAVE SEEN EARLIER THIS EVENING THE VERY ELABORATE AND COMPLEX AND COSTLY PROCEDURES THAT MUST BE UNDERTAKEN IN ORDER TO GUARANTEE THE PROTECTION OF OUR ENVIRONMENT , PARTICULARLY THE OCEAN WATERS , AND TO PROVIDE SEWAGE TREATMENT SERVICES FOR THE COUNTY RESIDENTS . AS WAS INDICATED AT THE OUTSET OF THE HEARING THIS EVENING , THE PURPOSE HERE TONIGHT IS NOT FOR OUR BOARD TO CONSIDER THE ADOPTION OF A SEWER USE CHARGE , OR TO CONSIDER INCREASING AN EXISTING USE CHARGE . ( 1 of 3) OUR SOLE PURPOSE IS TO SELECT THE METHOD BY WHICH THE CHARGE THAT WAS PREVIOUSLY ADOPTED BY THIS BOARD IS TO BE COLLECTED . THE CHARGES WERE ADOPTED LAST FEBRUARY AT A PUBLIC MEETING HELD FOR PURPOSES OF DETERMINING THE RATES TO BE ESTABLISHED . THIS WAS DONE AFTER TWO YEARS OF STUDY AND DISCUSSIONS AT FIVE SEPARATE PUBLIC MEETINGS . IT NOW BECOMES IMPORTANT TO FIND THE MOST COST EFFECTIVE WAY OF COLLECTING THIS REVENUE , WHICH IS NECESSARY TO PAY FOR THE DISTRICT'S SHARE IN THE OPERATION AND MAINTENANCE OF THE JOINT TREATMENT AND DISPOSAL FACILITIES AND ITS SEWER SYSTEM . I KNOW SOME OF YOU ARE CONCERNED ABOUT THE ADOPTION OF FEES, CHARGES AND TAXES , BUT I AGAIN MUST INDICATE THAT THAT 13 NOT THE SCOPE OF THE HEARING TONIGHT , AND I WOULD KINDLY ASK THAT ANY TESTIMONY OR STATEMENTS WHICH ARE TO BE GIVEN TONIGHT BE ADDRESSED SOLELY TO THE COLLECTION METHOD , AND NOT AS TO WHETHER YOU AGREE OR DISAGREE WITH THE USER CHARGE . IF YOU HAVE SOME SPECIFIC CONCERN WITH THE CHARGE , WE WOULD INVITE YOU TO LEAVE YOUR NAME AND ADDRESS , AND THE STAFF CAN CONTACT YOU; OR IF YOU WISH TO WRITE THE DISTRICT , WE WILL GIVE IT DUE CONSIDERATION AND RESPOND TO YOU AT A LATER DATE . THANK YOU . (2 of 3) WE WILL NOW HEAR FROM THOSE PERSONS WHO HAVE INDICATED A DESIRE TO ADDRESS THE BOARD . IF YOU WISH TO PRESENT ORAL COMMENTS , YOU MUST COMPLETE ONE OF THE PINK FORMS AT THE TABLE AND GIVE IT TO A STAFF MEMBER . NOTE: YOU WILL NOW CALL OFF THE NAMES OF THOSE PEOPLE WHO HAVE SUBMITTED A WRITTEN REQUEST TO ADDRESS THE BOARD . JWS:sc (3 of 3) + MEWING DATE Awil 18, 1990 TIME 7:30 p.m. DISTRICTS 2 —_2QW32a +l+lir Tih ...• . DISfRICT I JOINT BOARDS (YOUNG)........GRISET..... �_ (AGE)....................ARNOLD...... (KENNEDY)......EDGAR......._ _ (GREEN)..................BANNISTER..._ (ROTH).........STANTON..... _ _ (NEDAA)..................BIGONGER...._ (CRANK)........WAHNER......_ (WORRY)......:...........CATLIN...... (PLUMMER)................COX......... DISTRICT 2 (PERRY)..................CULVER...... (KENNEDY)................EDGAR....... _�— (NEDAA)........BIGONGER....✓ (MAHONEY)................GRAHAM...... (SCOTT)........NEAL........ (CHESSEN)................GRIFFIN..... (NORBY)........CRTLIN...... (YOUNG)..................GRISET...... �— (YOUNG)........GRISET...... ✓ �— — (PLUNNER)...............JNYRT........_ (GRAHAM).......MAHONEY..... (EDGAR)..................KENNEDY..... (MEDIN)........NELSON...... (GRAHAM).................MAHONEY..... _ (ECKEMRODE)....NEWTON......_ (SILVA)..................MAYS........_ (CULVER)......VRBIIRR.......JG (SCOTT)..................NEAL........ -- (HUNTER).......PICKLER..... (NEDIN)..................NELSON...... (SALDARIN1)....SILZEL......�_ (ECKENRODEI..............NEWTON...... _ _ (SARRERA)......SMITH....... (CULVER).................PERRY....... _ _ (ROTH).........STANTON..... _ (HUNTER)—...............PICKLER..... (HART)...................PLU MER....._ DISTRICT 3 (MINER)..................POLLS....... (STANTON)................ROTH........ — (MINER)........POLIS ...... (COX)....................SANSONE..... �— (NEVIN)........NELSON......_ �— �— (AGRAN)..................SHERIDAN...._ (AGE)....:.....ARNOLD...... (MILES)..................SIEFEN...... (GREEN)........BANNISTER... (SALDRRINI)..............SILZEL...... _ (WORRY)........CULVER......_ _ _ (BARRERAI................SMITH......._ (PERRY)........CULVER......_ _ (ROTH)...................STANTON..... (MAHONE Y)......GRAHAM......_ _ _ (MILLER).................SWAN........ _ _ (CHESSEN)......CRIFFIN..... (KAHLSTROM)..............SYLVIA...... (YOUNG)........ORISET......_ __— _— (ALLENI..................VERELLEN...._ (SCOTT)........NEAL........ _ _ (CRANK/FERRYMAN/GREEN)...WARNER...... (HUNTER).......PICKLER....._ _ _ (BIGONOER)...............WEDAA....... _ (MILES)........SIEFEN...... (NELSON).................NEVIN....... (ROTH).........STANTON..... �— (GRGAS)..................WILSON......— (WAHLSTROM)....SYLVIA...... _ (GREEN)..................M INCHELL...._ (ALLEN)........VERELLEN....� (GAGAS)........WILSON...... _ _ DISTRICT 5 (PLUMMER)......HART........ (COX)..........SANSONE..... STAFF: (STANTON)......ROTH......... _ SYLVESTER...}l� BROWN.......Je! DISTRICT 5 ANDERSON...,_A ' CLAWSON.....� (FERRYMAN).....tlAHNER:....._._ �_ DAWES........ (HART).........PLUMMER....._ _ _ HODGES...... (STANTON)......90TH........— _ — KYLE........ LINDER...... DISTRICT 7 NICMOIs....._ GOTEN....... (BARRERA)......SMITH....... STREED....... (KENNEDY)......EDGAR....... VINCENT..... (PLUMMER)......COX......... VON LANGEN (YOUNG)........GRISET...... _ _ �WIµNSQOR�......_ c (STANTON)......ROTH........ _ O/A.A+y WI14. �sS]. C,pO}p,J\• (AGRAN)........SHERIDAN...._ (GREEN).........WOMEN......_ _ _ OTHERS. W60DRUFF.... ✓ DISTRICT I1 " IDE......... (SILVA)........MAYS........._ _ _ ANWAR....... _DEMIR....... _ (GREEN)........WINCHELL....� _ FLEMING..... (ROTH).........STANTON...... _ _ HOHENER..... -HOUGH....... DISTRICT. 13 HOWARD...... _HUNT........ (BIGONGERI..:..VEOAA.......— — _ KNOPF....... (HUNTER)........PICKLER....._ — _ LINDSTROM..._ (STANTON)......ROTH........— _ _ LYNCH....:.._ (BARRERA)......SMITH........ . _ STONE....... (NELSON).......WEDIN......._ _ . MASON....... DISTRICT 16 YOUNG....... (MILLER).......StlPN........� (EDGAR)........KENNEDY....._ (STANTON)......ROTH........_ — _ (AGRAN).......;SHERIDAN...._ - (BARRERA)......SMITH....... _ 03/14/90 PUBLIC SIGN-IN SHEET COUNTY SANITATION DISTRICTS OF ORANGE COUNTY APRIL 18, 1990 BOARD MEETING DISTRICT NO. 2 - ORANGE PUBLIC LIBRARY NAME ORGANIZATION FIRM Please Print Please Print i v JASI/ , Q .11zepj KIN � REt'1 E �P. 6 . F / t-edr ��3�e7 V /mot a2� J�f/2 N2),J Etil64?— � c1�ARp PTNoM� #E'oIA C'oR9cPO4tAr►0fJ .1 7XIOW440 LEO( Mot E / Ni aT 4- 13.E — 19V1� rsia � C�n.� K 1A/` efw— w/ lie I� Vou.. L4Lw% % l%S Ito s. wwww*t Qq&- va .Eb 0o f. 4 IT• �3 e f G4 JT• Allj4 F31��` ` '` kMtIat My aD ,wAtPr �c.(�,sr,�Q PUBLIC SIGN-IN SHEET COUNTY SANITATION DISTRICTS OF ORANGE COUNTY k('1 B -9 o BOARD MEETINGy 19taLw4 R - Q ,N QtAP,Qx. V NAME OFG-A'gFZ-AT f 50 FIRM Please Print Please Print LCou/yaGO /l7aZG�R $/%9,OELG jua�S7.¢/E'S,j✓�C, ,. E CoNcer,Nr, C riu ono-allo, amk-t Weitem Foam Co r AY E e IN/sTCR &P +W Ct If + L F31 I REQUEST TO ADDRESS THE BOARDS OF DIRECTORS �../ ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. 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.�/ DATE: ��� AGENDA ITEM NO. NAME: (PLEASE PRINT) HOME ADDRESS: (NUMBER/STREET) � Grko (CITY/ZIP CODE) TELEPHONE: REPRESENTING: (SELF OR NAME OF ORGANIZATION) FPAA REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. 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. DATE: AGENDA ITEM NO. t � x x x x :t • e x : t � x • • t s • :e a :e x x � : t NAME: (PLEASE PRINT) G 1("8f&k&AA o' Ae/6KJ HOME ADDRESS: ^ _ d 4BER/STREET) G/ e C Y ZIP CODE) TELEPHONE: REPRESENTING: Ohl-t OR NAM ORGANIZATION) F28A 3 REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION AND REMARKS MAY BE LIMITED TO FIVE M-INNUTES. DATE: AGENDA ITEM NO. NAME: (PLEASE PRINT) HOME ADDRESS: EEc I TYIL P CODE) TELEPHONE: ���/ REPRESENTING: (SELF OR NAME OF ORGANIZATION F78A REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. 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. /1 q DATE: T/ '11/ AGENDA ITEM NO. NAME: (PLEASE PRINT) , HOME ADDRESS: l -3 6E, ie A/ (NUMBER/STREET) CITY/ZIP CODE) TELEPHONE: G�3:3 REPRESENTING: 52s (SELF OR NAME OF ORGANIZATION) F?RA 5 REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE S ARD� MEETING. 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. DATE: �� �X i /yv AGENDA ITEM NO. �. v x x x x x x x x x x x x x x x x x x x x x x x x x x x NAME: (PLEASE PRINT) tois HOME ADDRESS: Nri� a--ice f�I v D NUMBER TREET � A19�bf� 7� z8ds ITY ZIP CODE �z TELEPHONE: '7 y L� REPRESENTING: ELF OR NAME OF ORGANIZATION F9AA REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM__ TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION AND REMARKSMAY BE LIMITED TO FIVE MINUTES. DATE: 'V AGENDA ITEM NO. NAME: (PLEASE PRINT) Y� N�1 FlRC \ mom A 5 HOME ADDRESS: 44-31 �iiST Vf.�✓��i�e �- l�1ay (NUMBER/STREET) �NAHgu" q ZIO07 � (CITY/ZIP CODE) I(TELEPHONE: 14-100 - 5700 REPRESENTING: E 4 cogeowro- 14 (SELF OR NAME OF ORGANIZATION) F?RG REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. 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. DATE: b b AGENDA ITEM NO. 3/ ` : : • x :t :t :e x e z ■ • f �I /a : : t s • ■ : • : • • � NAME: (PLEASE PRINT) C� 'T HOME ADDRESS: Z� ��• [ r7�/f�U C (NUMBER/STREET) (CITY ZIP CODE TELEPHONE: REPRESENTING: (SELF OR NAME OF ORGANIZATION) F28A 8 REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARO MEETING. 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. DATE: �� '- I �- `'U AGENDA ITEM NO. NAME: (PLEASE PRINT) C' XL Yy O RCS HOME ADDRESS: �3 IC o SJIal� (NUMBN 151REET CS � t3t� G � , ( ITY ZIP CODE TELEPHONE: REPRESENTING: .CCpn^�- MY.J .eiyJ ZAT i'7 pp SELF OR E OF ORGANIION) F99C li -� • -I-I R- 9 REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE-BOARD DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION AND REMARKS MAY BE LIMITED TO FIVE MINUTES.. DATE: Lg AGENDA ITEM NO. xxxxxxxxxxxxxxxxxxxxxxxxxxx NAME: (PLEASE PRINT) DCAII//S HOME ADDRESS: ///y yA D NUMBER/STREET) (CITY/ZIP CODE) TELEPHONE: REPRESENTING: �EC ELF OR NAME OF ORGANIZATION F2BA �O REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE B ARD� MEETING. 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. DATE: AGENDA ITEM NO. x x x x x x x x x x x x x11 /x x x x x x x x x x x x x x NAME: (PLEASE PRINT) PPS � ' ct HOME ADDRESS: -j-;L,Pl L-� 3v NUMBER/STREET �fipr ely couve� Fzc �/6 (CITY/ZIP CODE TELEPHONE: z� 7%1 REPRESENTING: r SELF OR NAME OF ORGANIZATION) F28A 14 REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE B RDA MEETING. 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. LL�� DATE: AGENDA ITEM NO. 3 A T NAME: (PLEASE PRINT) ��+�' �M1yV% !� HOME ADDRESS: zolCD Ar. wpVPyR qVS NUMBER STREET 8�1�F►r'�' � G14. aY�t91o� CITY ZIP CODE TELEPHONE: (! 37y - ��000 REPRESENTING: SELF OR NAME OF ORGANIZATION F28A lZ REQUEST TO ADDRESS THE BOARDS OF DIRECTORS \/ ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. 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. DATE: �y� AGENDA ITEM N0. t f: : e . :t . • : s x . x . x • :e . :e :e x x x : x : � NAME: (PLEASE PRINT) Q o HOME ADDRESS: Q r ��rr (NUMBE//R/�STREtf 6 --12 / EA LTrdry L p CITY/ZI CODE) TELEPHONE: Q 3 O -�_!Xr REPRESENTING: S a-,/ l ' ( LF OR NAME OF ORGANIZATION) F2BA 6�� 6 REQUEST TO ADDRESS THE BOARDS OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARDS ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE B ARD� MEETING. 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. DATE: AGENDA ITEM NO. • * • :t :t ■ e t x x :t e x x x • e x x : : : a t e NAME: (PLEASE PRINT) MI¢ .. /woe r'C_ HOME ADDRESS: /Z/ ] O (�rAeA NUMBER STREET (UllY1LlF C DE TELEPHONE: _ _ _�/ yyo>//� ,7 REPRESENTING: �Iye SELF OR NAME OF ORGANIZATION F28A DISTRICT 2 MTG. NOTES - 4/18/90 7:30 P.M. Orange Public Library a.i #3(a)(2) - STAFF REPORT The General Manager announced that this was the time and place noticed for the purpose of receiving a written report pertaining to the providing of sewer service for all properties within the District, and the proposal to collect the adopted sewer use fee on the property tax roll beginning with the 1990-91 fiscal year. He noted that the Board will not be considering any new fee or any change in an existing fee, but, rather, the method of collecting the already-adopted sewer use fee that will take effect July 1st. Mr. Sylvester also reported that District No. 2 is responsible for transporting, treating and disposing of sewage from northeastern Orange County in a safe manner in accordance with strict federal and state laws to protect the public health and the environment. In order to acquaint some of the citizens attending the hearing with the role the Sanitation District plays in handling the sewage that comes from their homes and businesses, a 20-minute video presentation was given on the Districts' activities. The Director of Finance then reviewed the alternatives and the proposed method of collecting the District's annual user fee. (SEE ATTACHED REPORT) He reviewed the types of written comnents, telephone calls and questions received to date, such as: what other alternatives were considered; why on the tax roll ; issue of tax versus a fee; and what can be done if property is not connected to the sewer? He then reviewed each of these issues. Mr. Streed reviewed the various methods considered for collecting the user fee and the costs associated with each one: - Direct billing by District, probably quarterly - Collect on local water bills - Collect on property tax bills The General Manager then reiterated that the purpose of the hearing was to receive public commentary on the District's proposal to collect the annual user fee on the property tax bill . He reviewed the various notices sent to property owners and published relative to the public hearing. Also commented on various workshops held to answer questions about the District's proposal . Chairman Bigonger then made a statement to the public. (SEE ATTACHED) #3(a) (5) - ORAL PUBLIC COMMENTS - Malcolm Jahr, 17292 E. Orange, Yorba Linda Mr. Jahr asked the Board to identify themselves. They each introduced themselves and indicated what city or agency they represented. He then questioned the $3.3 million difference between using tax roll and existing methods that are presenting in effect in each of the cities? The Director of Finance responded that the billings that are already in place are for the local sewer service. The Sanitation District owns the collection and treatment facilities. We receive no money collected by local agencies. If as the fee were collected by the cities, the bulk of the fee would be for the cost to collect it by the city. If they charged 5% of the user fee, it would be a large portion of the cost. There are several companies that we would have to deal with and develop agreements with. We can't ask a water company to collect sewer treatment costs on our behalf. Additional staff is required to keep records also. Mr. Jahr felt that since some of those systems were already in place, it would not increase that cost. He objected to putting this on the tax bill because the people have no say in the individuals on this Board. If charged by a city, they can go to city and protest. Would like to see bill passed on to the cities and then passed on to him as an individual . - Elisabeth Charron, 10432 Mildred Avenue, Garden Grove She commented that she doesn't read every legal notice in the paper. The people don't know when you decided to raise the rate. Also objected that the notice of public hearing was sent by bulk rate and not postmarked. Said she had been asked by a State legislator to give them a copy of the notice. Thought it was the lazy way out. Can't take it off the income tax because it is a fee. If you don't pay the whole tax bill , they will send it back. You know this is the easy way to collect it. Ms. Charron said she checked with two agencies in her local area and to their knowledge nobody from the Sanitation Districts asked what it would cost to collect this on their bill. She commented that it seemed like more than 15 people at the Fullerton workshop and 7 in Placentia. Rooms were small just like this hearing room so it seems we weren't expecting too many people and don't want to hear from us. Signs are also inadequate. She added that she understands the environmental regulations but the way we went about it was by the back door. Would rather have it come direct from the District. Complained that since this is not a tax, is not deductible. Also objected to the District saying they may raise the fee without notices to the public. We should have educated the public. Said she thinks there is a way to do this more equitably. Re equitability, a senior citizens home won't put as much in the sewer as others. Re item (3)(b) , asked where are you going to get the figures? You get 3% of the 1% now, You are going to add $55. Really has to be some other way. You say we can appeal after tax bills are mailed. Just got bill so this won't show up until the end of the year. General Manager or Director of Finance grant waivers. Should be more than just one person's opinion. Added that she is concerned about the way you have done it. Think you should stop. - Eileen Larcome, 4605 Wimaurie Avenue, Santa Ana Objected to the bill being put on the propery tax bill. We have no way of v knowing how many times you need to raise it. You state this is an immediate need and will be adjusted to reflect the need in the future. Is this an annual fee or is this adjusted during the year? -2- The General Counsel advised that this is an annual fee. Will remain as it is until further study and a report is prepared next year or the following year indicating an adjustment is necessary. We would revise the fee by adoption of an ordinance. Notice of public hearing will be published. 140,000 notices were mailed for this hearing. We would not do that next time. It would be published In a major newspaper. Ms. Larcome said it should be put on TV. TLW advised that the State Legislators haven't seen fit to provide for that yet. Statute provides expressly how to notice this in the newspaper. Ms. Larcome added that she objected to placing this on the property tax bill. Want to know what my bill is going to be. She is on a very restrictive income. - H. R. Kinder, 1342 E. Hickory Lane, Orange He stated that he was not notified of the public hearing re adoption of ordinances. Tom Woodruff advised that the notice was published in the newspaper. He commented that future changes and increases had been mentioned but what about decreases? I am on a fixed income. A few years ago the tax bill had everything itemized. Asked if the District would request that this fee be itemized. The General Manager stated that the user fee will be shown as a separate item on the tax bill. - Lewis R. Mote, 527 N. Harbor Blvd. , Anaheim He said he was concerned about the lack of information relative to the high costs on the chart and brochure, but I understand you ask us not to entertain discussions in that area. I am in agreement with previous speakers' comments. Expressed concern with the 300% increase in District's expenses. - Richard P. Thomas, 4431 East Olivebranch Way, Anaheim He said his questions are not how these are collected but the $39 per 1,000 sq.ft. user fee for industries. Realize that this is not germaine tonight. One would think it would be more equitable to relate to water use rather than square feet. He has a 60,000 sq. ft. building and last year paid $1,151 for water and the user fee would be $3,140. Three and one-half times the cost of the water. This includes 32,000 feet of unused vacant building. Trust you will find a more equitable method. - Robert V. Peringer, 231 So. Parklane, Orange He said he appreciated the work of Sanitation District No. 2 but objected to this collection of additional taxes in the guise of a user fee. Should look at bigger financial picture in Orange County. This is comparable to $12 million overrun at John Wayne Airport. Your additional cost is small in comparison to Broth in the Sheriff's Dept. This year's budget for the County is 51,656,000,000 which is $400 million increase from last year. Your $10-12 more should have been included in that. Why wasn't the needs of the Sanitation District included in the operating increase by Orange County? Is there any reason we should not believe that this reasonably-well managed District isn't used for other user fees for other governmental agencies to evade the limits of Prop. 13??? The General Manager responded that he appreciated that it may be confusing to v the public because of the District's title contains the word "County". Provisions of the Health & Safety Code County Sanitation District Act provide for the name. Since the Districts are special districts and are separate and apart from general purpose government known as Orange County government, and we are not included in the County budget. None of the fees from the Sanitation Districts go to anyone else. Our fees are solely for the collection, treatment and disposal of sewage. -3- - (The Chairman then called for Mark Moore to speak but he did not come forward) - Carole Walters, 534 N. Shaffer Street, Orange as She stated that she had thought they were there about the fee. Thought there should be an allowance for senior citizens. Should call Attorney General re what you are doing. - Dennis Duffy, 11752 Rave Drive, Garden Grove He said his major concern was the equitability of billing. Would like to see the amount of water being used be the billing criteria or what drives the bill rather than the type of property being used. Director Mahoney asked, should we install meters on every property to measure the amount of water going into a sewer? He replied, no, could work with local water companies. Mahoney asked, how could we do that? What goes in may not govern what comes out. How would we measure without measuring flow into the sewer line? Mr. Duffy noted that we have adjustments for those not hooked up. Certain adjustments could be made for the amount of water used. Mahoney stated, if you watered your yard, wouldn't this go down the sewer line. How do we get to be equitable. Is that a fair statement? He replied, somewhat fair. A certain amount goes down the sewer. Director Nelson noted that the slide presentation showed that we are tring to cut down on the costs by the method of collecting these fees. We are trying to keep the costs down. Direct billing ($4 million+) is the most expensive way of collecting it. Mr. Duffy stated he still thought we could get bills from the water companies and bill through the County. - Perry Walker, 12281 Lampson, Garden Grove He asked, how do you determine a residence should cost $55 and an apartment $33? Staff advised that studies we and other agencies had performed had indicated apartments discharged 60% of what a single-family residence discharged. We are currently investigating various types of developments and perhaps there will be more than 3 categories in the future. If we find it necessary, will propose a change for next year. Mr. Walker asked, who is going to police collection of these fees for apartments? Asked if a person owns an apartment with six units, should they pay six times $33? He was answered yes, the County knows how many units and there will be a separate line item on their tax bill . Mr. Walker said he knows of apartments that are not on file as apartments and he has reported them but nothing has been done. - Bill Leming, 2720 E. Walnut Avenue, V, Orange Objected to method of collection. We are charging property owners. Not based on amount of water used. Office buildings will need waivers. As a small �./ property owner, if I own a small building, I get a tax increase. Can't have it both. If it costs more to collect a user fee, say no. We don't treat it like a user fee. It is like a property tax. -4- Director Mahoney asked, are you saying that you would support having the bill collected on the water bill. If it would cost $80 as opposed to $55 on the property tax bill? He replied that at least he would be paying for what he was using. Mahoney added, I understand the inequities but would you rather pay $80 than pay it on the property tax bill? He answered, no, would rather pay $55 but what I am looking for is equity. Mahoney said I think the equity issue is very difficult to come up with. What about schools? 52% of taxes go to schools but may not have people in school . He added that this will be a separate line item on the tax bill. You will see It every year. It is not going to be hidden. - Jan Duffy, 11752 Reva Drive, Garden Grove Asked how many of the Directors live in District 2? They advised all of them. Stated that she lives in a single family home and she and her husband work during the day and are gone every other weekend, while her neighbor has 13 people living there. Felt it very inequitable to charge the same for both households. She stated the charge should be added to water bills and not be a flat fee. Director Culver pointed out that the fee had already been adopted and the method of collection was the issue that evening. She felt method of collection was wrong and unfair. - (Called for Mark Moore again; still no answer) The General Manager then added that several people were concerned that large commercial or industrial establishments might not be paying their fair share. He advised that since 1976 those types of establishments are charged separately based on their load on the sewer, some as much as $729,000 a year for sewage service. X3(b) - Adopt finding It was moved by Pickier and seconded by Neal to adopt a finding that a majority of the owners of property had not protested. Motion carried unanimously by voice vote. N3(c) & (d) - Sewer Service Charge Report & Resolution No. 90-38-2 Moved by Griset, seconded by Nelson. Carried unanimously by voice vote. -5- 4-18-90 u COUNTY SANITATION DISTRICT NO. 2 PUBLIC HEARING TO COLLECT USER FEE ON PROPERTY TAX BILL PUBLIC HEARING ON PROPOSED COLLECTION OF SANITARY SEWER SERVICE CHARGES FOR CSD NO. 2 ON THE PROPERTY TAX BILL BEGINNING IN 1990-91 STAFF REPORT ON PROPOSED USER FEE (--&L 1 Kr U(I"k� MLh2iu'- %eizvuzI) u u�o wcc= w 2c--i2a�1t i — Chairman Bigonger, Members of the Board,4this is the time and place noticed for the purpose of receiving a written report pertaining to the providing of sewer service for all properties within the District, and the proposal to collect the adopted sewer use fee on the property tax roll beginning with the 1990-91 fiscal year. I — The Board will not be considering this evening any new JeS fee or any change of an existing fee , but rather, the method of collecting the already adopted sewer use fee that will take effect on July 1st. — County Sanitation District No. 2 is responsible for transporting, treating and disposing of sewage from i Northeastern Orange County in a safe manner in accordance with strict federal and state laws to protect the public health and the environment. —1— — Recognizing, Mr. Chairman, that some of the citizens attending the hearing tonight have not yet had the opportunity to acquaint themselves with the role that the Sanitation District plays in handling the sewage that comes from their homes and businesses, we would like to take a few minutes to show a video presentation on the Districts' activities. — 20 minute video presentation — Mr. Chairman, in order to comply with the new, stricter Federal, State and Regional regulatory authorities requirements, the Sanitation Districts are constructing sophisticated treatment facilities at a cost of hundreds of millions of dollars o rovi ' se a e mmun en calat9ng r�pi asing ' ent a to la r6gulatlo re ' ' dv en stewater to remove toxic materials and other pollutants from the sewage to assure protection of the public health and safety and the environment, and most particularly our precious ocean waters. — Recent implementation of new, tough air quality standards are also having a significant impact on the District's costs and operations. —2— — The County Sanitation Districts e u are regulated by the Califomia Regional Water Quality Control Board, the State Water Resources Control Board, the State Department of Health Services, the South Coast Air Quality Management District, the California Air Resources Board, and the U. S. Environmental Protection Agency. — These regulators. with mandates from state and federal Legislative bodies, continue to impose increasingly higher environmental standards which the Districts must comply with. They are not optional, the Districts have no choice but to comply, and the price tag is expensive. — The cost of constructing new facilities to comply with higher and higher standards and the cost of operating and maintaining those facilities must all be bome by each of us, the citizens that the Districts serve. — I think it's important to keep in mind, however, that the legislators and the regulators should not shoulder the entire blame for this situation. In a representative form of govemment they respond to the wishes of their constituency. The message that constituency has given them is that stricter environmental regulations are desired; and now it's time to pay the price of those stricter controls. —3— — We can't have it both ways. We can't demand higher environmental and public health standards and at the I same time demand reduced costs. — Unfortunately , the Districts, and more particularly the Board members , are between the proverbial "rock and a hard place . " The Federal and the State governments impose stricter requirements. — And we , the Districts, become the messenger with the bad news of what it's going to cost, and who is going to pay for it. — At this time, Mr. Chairman , I would like to introduce Mr . Gary Streed, the Districts' Director of Finance , who will review the alternatives and the proposed method of collecting the District's annual user fee , and briefly comment on the District's finances. P ---�— - — Gary's presentation — For several years , property tax revenues have been N. insufficient to meet the District's operating costs and I it has been necessary for the District to draw down its reserves. —4— — In fiscal year 1990-91 , without appropriate measures to protect the District's financial integrity, it would have been necessary for the Board to authorize a transfer of i $12 million in capital reserves from the District's Accumulated Capital Outlay Fund to the Operating Fund to pay the full costs of operating and maintaining the District collection system and its proportionate share of the O&M costs of the Joint Treatment Works. — By 1993-94 the District will require additional revenues in the amount of $80.3 million to meet the District's operating expenses and maintain the solvency of the fund / due to insufficient tax revenues. uJ' — To address this fiscal challenge, in 1989. after considerable study of the District's long—range funding requirements, the Board adopted a financial program to avoid projected revenue shortfalls and provide the necessary income required to finance the District's rising operating expenses, as well as major capital expenditures for construction of master—planned treatment facilities. — The Boards' adopted financial program includes: A One—time Connection Fee Of: $2 , 270/Dwelling Unit Residential Property $ 45011 ,000 Sq. Ft. Commercial. Industrial and Governmental Property —5— - The one-time connection fee , is used to pay for capital facilities expansion to serve new development , and is collected for the District by the various cities when building permits are issued for the new development . - The cities will continue to collect the connection fee and therefore the means of collecting that fee is not an issue of this hearing. - As the second part of the long-range financial program , to pay for costs of operating , maintaining and rehabilitating the sewerage system , and to pay for debt service the Board has adopted an annual sewer use fee: - The annual User Fee is: - Single-Family Residence $55 . 00 - Multi-Fami Residence/ 33 . 00 Mobile ome - Commercial 39. 00/ 1 , 000 Sq . Ft. - Industrial 39. 00/ 1 , 000 Sq. Ft. - Governmental 39. 00/ 1 , 000 Sq. Ft. - I might add parenthetically that large commercial or industrial dischargers that place an inordinant demand on our system are subject to a surcharge under a separate industrial waste ordinance that has been in effect since 1976. Some industrial dischargers now pay as much as $ for sewer service per year under that program . -6- — Again , the purpose of this hearing is to receive public commentary on the Districts' proposal to collect the annual user fee on the property tax bill. — Official notice of the hearing was mailed during the latter part of February and early March to 139 , 611 I property owners of record on the last equalized assessment roll of the County of Orange , in accordance with the provisions of Section 5473 . 1 of the California Health and Safety Code . — As prescribed by law , a legal notice of the hearing was published in the Orange County Register March 28th and April 4th . — The hearing notice announced the time and place of two workshops to be conducted by staff to answer questions about the proposal or any other questions about the Districts' operations . — The workshops were held in various locations for the convenience of the citizens: — 1st on Tuesday , March 13 @ 7:30 p. m . , at the Fullerton Museum Center 15 people attended that workshop — 2nd on Thursday , March 22 @ 7:30 p . m . , at the Backs Building in Placentia 7 people attended that workshop —7— — The hearing notice also included the District's telephone � •S number for citizens to call with questions, or for more information, I 0. !J 6• '6 — The staff has fielded approximately o calls. — The questions raised at the workshops and in the telephone calls have dealt primarily with: Proposition 13, the issue of tax vs. fee — The equitability of the system of charges t — Efficiency of the District's operation — Alternative treatment and disposal methods OF, — Whether or not the proposed fees would be used to pay for sewers to accommodate growth — which I addressed earlier f in my summary on the connection fee program. — The relationship of the local street sewer system provided by the cities to the regional system of Sanitation District No. 2. — And other methods of collection , such as the city water bill — In addition, some people called to tell us: — that their property was not connected or that they were unsure, or they felt their fee should be modified � I — or to advise us of a change of ownership —8— — Although many of the issues posed are not really relevant �i to the specific purpose of this hearing, we do recognize that the citizens have a genuine interest in the activities of the Sanitation District and we would therefore like to take a few minutes and summarize . for the record. the responses to those questions that were raised before the hearing is opened up for oral public commentary. — With regard to Proposition 13 — We recognize that Proposition 13 is an important issue with the taxpayers, that it was a vote to reduce the IIN,! cost of government. There probably isn't a person in this room that doesn't agree—at least in principle— with its concept. — But many citizens have told us that when they voted for it they thought that the so—called essential services-- the property—related services—if you will--police, fire, water and sewer, would be fully—funded and that other governmental services would share in what was left over from the 1% levy. — Unfortunately for the Sanitation District, that didn't happen. The State Legislature decided that all governmental agencies would divide the money based on their previous historical ratio of tax revenue. —9— — In fact, in the implementing legislation, SB 154, signed f ..... by the Governor on June 24, 1978, the Legislature went so far as to declare its intent to remove any special District with the statutory authority to levy user charges from the tax roll entirely. — Fortunately, that has not come to pass, or we would all be paying more. — Similar questions have been raised with respect to Proposition 62. GO I \ — The Sanitation District is an operating utility—just the same as the Gas Company and the Edison Company--the only difference is that we operate under a different section of the law. — Our sole function is the collection, treatment and disposal of sewage and its residuals. — We perform no other services. — We do not have the problem of convincing anyone that we have a service to offer that they, in fact, need. — The Districts' role , as we said earlier, is to protect the public health and safety and the environment. .s —10— — With higher energy costs , the effects of long—term inflation and more stringent treatment requirements mandated by Federal and State regulatory agencies , we simply cannot provide that protection , faced with the projected deficits I mentioned a moment ago . — With regard to whether the user charge is a tax or a fee , it is clearly a fee . — The proposed fees are based upon use , whereas property taxes are based on the value of the property and have no direct relationship to use . — Further , the Districts have had statutory authority since their enabling Legislation--long before Proposition 13 or Proposition 62--to adopt user fees and to collect them on the property tax bill . — The reason we propose to collect the fee on the tax bill is that it is the most cost—effective method . — The property tax bill is a mechanism that is already in place and is therefore the most convenient and least costly method . Any other method would be considerably more expensive , the cost of which would have to be added to the use fee and , thus , increase it. —11— — With regard to the equity issue , it is the intent of the program that everyone pay their fair share; however, there is no user fee system for sewer services that is totally equitable . — This is the reason the fee ordinance adopted by the Board provides an appeal process to enable an adjustment of fees where a gross inequity is demonstrated . — We have developed our proposed charges from studies that have determined the average uses . r� — Again , I would reiterate large commercial or industrial , dischargers that place an inordinant demand on our i system are subject to a surcharge under a separate industrial waste ordinance that has been in effect since 1976 . — As I said before , some industrial dischargers now pay as much as $ per year under that program . — Some have suggested that we install meters and measure the actual sewage discharge . — First , there is no reliable sewage metering device that measures flow from household and other small connections . —12— - Even if there were , I would not hazard a guess at the cost to purchase 139 ,000 meters, dig 139 , 000 holes in the street and the front yards of property owners to install them and then ask the citizens to pay the added and the ongoing expense of maintaining the meters . - Others have suggested that we base the charge on the actual water usage. This method is wrought with problems also. rnr - First, there are inherent inequities because all of the water that is used does not end up in the sewer. - An even bigger problem is the fact there are many separate water purveyors in the Districts . - Each with its own separate system, some of which are not volume based but, rather, use a flat rate , none of which are currently compatible with our systems. - It would be most difficult and expensive to design a billing system that would be compatible for all of these separate agencies , either to transfer to the property tax bill or to institute a separate billing system , and it would substantially increase the costs of administering the system, adding 15% to 20% . -13- — For those who suggested that the fee be collected on the water bill , our experience is that the water agencies are not receptive to assuming the headaches associated with collecting our sewer service charge via their water bill . — I would simply state that there are many problems with doing that. — That is why we feel--all factors considered--the proposed system is the best one available at this time , that it achieves reasonable equity without incurring high costs of administration . — With respect to basing the charge on actual measured volumes , I would have to say that because the fee will be collected on the property tax bill , to base it on actual use would require a considerably greater effort to obtain the actual water volume for each property , calculate a charge and transfer the information to the County's property billing file . — I would reiterate however , the proposed procedures do provide a mechanism wherein gross inequities can be corrected on a case—by—case basis. — On the issue of efficiency of operations , let me just touch on some of the things that the District does to keep costs down . —14— i — Although there are nine Sanitation Districts, there is but one staff to administer the business of all nine. Costs are charged to each District as services are performed for it through a sophisticated cost accounting system. — The Districts contract many services with private firms rather than hire full—time professional staff members. — Other Examples of Our Continuing Efforts to Implement Operating Efficiencies are: I — Digester gas utilization/central power generation D" — $6 — $8 mm/yr — Interim co—generation at Plant No. 2 — $185,000/yr — Lighting/energy conservation — $2 mm over 20 yrs — Old centrifuges for dewatering sludge have been replaced with belt presses — substantial energy savings of approximately $520,000 per year. — Phys/Chem advanced primary treatment — The Districts' are a member of the Southern California Energy Coalition for shedding peak electricity loads during high community demand periods from which we receive approximately $110,000 per year. r.. — PL 92-500/301 (h) waiver scenario. . . —15— — There are many factors that cause the rising cost of G"v( ; sewerage service, but the cnix of the matter is the demand for more and more environmental protection measures. c T — We have received �61 written communications, a summary of which is in the Directors' meeting folders. I Raised the Proposition 13 issue _ Indicated a preference for direct billing — even if it would be more costly Indicated a preference to be billed on the water bill Believed that their fee should be reduced because of the property use Stated that the Districts should reduce costs Questioned if their property was in the District Misunderstood who is supposed to pay the fee Supported the proposal: and _ Advised us that their property was vacant or not connected to the sewer — Mr. Chairman, that concludes the staff report. —16— — Mr. Chairman, it is in order for th"card to consider a formal motion to receive and file the / f communications rn„S as part of the official record. Item 3(A) (4) on your agenda I — Mr. Chairman, it is now appropriate to open the hearing for oral public comment. _17— COUNTY SANITATION DISTRICT NO. 2's NOTICE OF PUBLIC HEARING NOTICE OF PUBLIC HEARING Notice is hereby given pursualtto California Health and Safety user fee. This fee has been set at$55 Per year($4.88 a month)for Code Section 5473.1 of a public hearing to be held by County residences, $33 per year for apartments and mobile homes, and `nflation District No. 2 of Orange County, Caldonia at $39 par 1,000/sq.R.of building apace per year for commercial and 0 m. On Wednesday,Aril 18, 1990 a[the Orange Public industrial customers with larger discharges. User fees are not P y� P 9 used for new development. Fees for new development are paid for brary,locatedat101 North Center Street,Orange,California. by the developer connecting to the sewer system. Said hearing is to be held for the purpose of reviewing written reports pertaining to the providing of sewer service for all Our ongoing goal is to maintain effective and efficient wastewater properties within County Sanitation District No.2, and to con- oe,scut services.The challenges we must continual]yface are sider public comments regarding use of the County of Orange inexeamag service demands as population grown,and increasingly property tax roll for billing of District sewer service charges for stringent environmental regulations. The fees reflect the sewer collection,treatment and disposal services for the fiscal immediate financial needs of your District, and will be reviewed year commencing July 1, 1990. and adjusted as needed to continue protecting public health and our precious environment. PROPOSED BILLING AND COLLECTION METHOD Lw Mgnn C,run T e.e3r q^ County Sanitation District No. 2 is proposing to collect its sewer service user fee as a separate line item on the owns]property tax bill. Useof this more cost-effective alternative method wouldallow, p 1 the Districts and its customers to save the coats of producing, mailing and handling separate utility bills for direct payments. R 0e Every property owner within the District receives an annual property tax bill from the County Tax Collector. California Health 13 ' andSefety Cade Section 6473 allows the District replace oursewer swam 0, userfee on this hID as a separate line item,thusproviding the user with the mnvenionce of including payment for District No. 2 sewerage service with property tax payments. m �^a Therefore,effective with the billing year beginning July 1, 1990, e the Board of Directors of District No. 2 is proposing to use this 0i o billing method to help keep the coat of service down. The above noticed public hearing is to consider the proposal to use the property tax bill to collect the nwual sewer user fee instead of a separate direct and more matly billing method. s FURTHER IN FORMATION/PUBLIC WORKSHOPS The question and answer section of this notice attempts to address some of the questions you may have. In addition, two workshops have been scheduled where staff will provide mare detailed information and will be available to answer any additional Wastewater from your home or business is collected by yaw local questions(see back side of mailer for locations). street sewer system,which is maintained by your city or sanitary district. The street sewers flaw into large interceptor sewers in your area owned by County Sanitation District No. 2. District No. 2, the shaded area of the map,is one of nine Districts that make up the DISTRICT NO.2 County Sanitation Districts of Orange County, OPERATING FUND which serve the metropolitan area of the m wmty.These Distnctsjaintlyownandoperate RESERVES&DEFICIT PROJECTION the regional sewage treatment plants in W Fountain Valley and Huntington Beach. The ExPwsES Sanitation Districts are charged with 30 protecting public health and the environment. M CARRYOVER & REVENUE u The Sanitation Districts operations are regulated by federal and state environmental L DEFICIT agencies. to recent years,these agencies have 1 20 adopted and imposed mare stringent laws and N RESERVES s regulations to protect our environment. In 1 order to comply with the new regulations,new s advanced sewage treatment facilities, mating to EJ,P ES REVENUE hu- '-eds of millions of dollars, have been ccqq od. The additional facilities have s red Nf�ete in increased operating costs. a Rising costa and decreasing reserves were Brea ease 8s.W 9a91 91-W M-93 919 forcing District No.2 into a financial crisis by FISCAL YEAR 1990 (sea graph). To continue providing the high level of service you are accustomed to, District No.2 recently adopted a sewer service QUESTRONS and �a r 1. 0 What 01 feel I should too exempt from the 5, 0 Is this money t0 be used for expanding N charger the"am to accommodate more A It your property Isn't connected to the local growth? sewer system,you are exempt.Simply A No.New sewer lines are funded by < V 0 at ach a copy of your Ux but to substantial connection fees paid by g 0 ,O a letter a explanation and mall it to the developers of new construction projects Orange County Sanitation Districts,Box that are connected to the sewer. . 0127,Fountain Valley. CA g, 0 Can ona district bonow from another ym1 927260127. adjacent disMct that may be more 0 n1 2. 0 I already pay a charge for sewer service financially stable? v 3 on my water bill.Is this a duplicate A No.Each of the districts is a separate 0 charge? A No.The sewer service charge you now property ty o money belongs to the k for your connection to the Iota and cay owners a that der disict alone m Wepay Yo end cannot be lent to mhos hlon 13. 0 street sewers local sd and maintained 7, 0 I thought mat under Proposition 13 arry by the city or a local sanitary district. increase in taxes required voter Their sewer system connects to the approval. District No.2 trunk sewer system.The A The user fees do not require a vote 91 District No.2 fee will be used to pay for under Proposition 13.It is a fee for use, the District's regional trunk sewers and the regional treatment and disposal reg a tax.Water at pollution control facliXles located in Fountain Valley and Environmental t mandated by the Huntington Beach that transport and Environmental h Protection req Agency(EPA) beat and salary dispose of your are Stare health laws require d rd wastewaeI. meet certainwill prove health standards. 3. O I already pry a charge to your districts on The lees will provide sufficient lands to my lax bill.Why soothe charge? meet these mandated requirements, A The charge you currently on our tax protect the heath of the public ertd keep 9 Y bonds Y ourwem othean. ye b for repayment Of bonds sold marry 8. 0 Are there mhosways to on o erase years ago to pay for co u we now u fees wXhoa putting them on our tax some of the facilities you are row using. NIIT The new changes will pay for operaWg. A yet,The DIsMcM could establish maintaining and rehabilitating the separate direct billing and collection existing sewerage system faculties. systems.The cost al operating such 4. 0 What do you mean by rehabilitation? systems. systems would Increase the lees A Many segments of the sewer system were 151020 percent for the average constructed more than 30 years ago homeowner. and may deteriorate as May grow older. We can extend the life of the pipes, Ifyouhavequmtionsor wish further if.meticq thereby avoiding replacement, pkaacall lhollaMtatien Dicmidd oQim et by making improvements to the existing (7101 2411,Rximwio li. axes and pump stations. WORKSHOP NO.I WORKSHOP NO.2 Fullerton Museum Center Sacks Sulkil, 301 North Pomona Aveneo 201 North Bradford City of Fullerton dy of PlaconOa TUESDAY,MARCH 13,1900 7:30 PM THURSDAY,MARCH 22,1990 7:30 PM 86,° pm z 0' 9 r na8 > o wo ada�� y PUBLIC HEARING Orange Public Library 101 North Center Street City of Orange WEDNESDAY,APRIL 10,1090 7:30 PM u . COUNTY SANITATION DISTRICTS of ORANGE COUNTY, CAUFORNIA 109m EW AvENUE 1 / PO.WX 8127 \I Ef MNVLL Y,CUMMA92T2 127 O1QM4411 February 23, 1990 M E M O R A N D U M TO: DISTRICT 2 DIRECTORS SUBJECT: Notice of Public Hearing re Intent to Collect User Fee on the Property Tax Bill As you know, the Board recently approved a user fee program effective July 1, 1990 to provide necessary funding to finance ongoing District activities. We are required by California Health and Safety Code Section 5473.1 to notify every property owner in District No. 2 and to hold a public hearing on our proposed use of the joint consolidated property tax bill to collect the user fee. Enclosed for your information is a copy of the notice of public workshops being conducted by staff and the April 18th hearing that is being mailed to all property owners. The hearing will be at the Orange Public Liabrary, 101 N. Center Street, to accommodate citizens that wish to attend. If you have any questions, please call Gary Streed, Director of Finance, or me. fGaral e Sylvester Manager JWS:rb Enclosure QUESTIONS Fs%;s. c3 �t 'Y 1. 0 What it l feel l should be exempt from the 5. 0 Is this money t0 be used for expanding Ul charge? the system to accommodate more > > A If your property isn't connected to the local growth? sewer system,you are exempt.Simply A No.New sewer lines are funded by mach a copy of your tax bill to substantial connection fees paid by m 8 a laOer of explanation and mail it to the developers of new construction projects m rig R Orange County Sanitation Districts,Box that are connected to the sewer. =� o 8127,Fountain Valley, CA O a 92728 6. O Can one district borrow from another D m m 8127. adjacent center that may be more 2. 0 1 already pay a cr vice financially stable? ru on my water A No.Each of the districts is a separate O charge' entity.The money belongs to the A No.T. property owners of that district alone pay is t. and cannot lent toother districts. �I street se o by the city �. Their sewer approval. 7. O I thought thatt antler Proposition 13 any c e in razes required voter approval. ,Z District No.2 A The user fees do net require a vale District No.2 t under Proposition 13.It is a fee for use, the District's reS not a tax.Water pollution control the regional treat. Q regulations mandated by the facilities located in Environmental Protection Agency(EPA) Huntington Beach it and State health laws require us to treat and safety dispc meet certain public health standards. wastewater. The fees will provide sufficient funds to 3. 0 I already pay a charge to your districts on most these mandated requirements, my tax bill.Why another charge? protect the health of the public and keep A The charge you currently pay on your tax our waters clean. Nil is for repayment of bonds sold many 8. 0 Are there other ways to collect these years ago to pay for construction of fees without putting them on our tax some of the facilities you are now using. bill? The new charges will pay for operating, A yes.The Districts could establish maintaining and rehabilitating the existing sewerage system facilities. separate direct billing and collection 4. O What do you mean by rehabilitation? systems.The cost of operating such billing systems would Increase the fees A Many segments of the sewer system were 15 to 20 percent for the average constructed more than 30 years ago homeowner. and may deteriorate as they grew older. We can extend the life of the pipes. Vyou haveq,eelimu orwish further inforinause, thereby avoiding replacement, pl.roll the Seabeds.Dimridrlaflice et. by making improvements to the existing (714)962-2411,Extension 5. lines and pump stations. WORKSHOP N0. 1 WORKSHOP NO.2 Fullerton Museum Center Backs Building 301 North Pomona Avenue 201 North Bradford City of Fullerton City or Placentia y p TUESDAY,MARCH 13,1990 7:30 PM THURSDAY,MARCH 22,1990 7:30 PM Li .�Y 0 i y m PUBLIC HEARING 1 Grange Public Library 101 North Canter Street City of Orange WEDNESDAY,APflIL 18,1980 7:30 PM COUNTS SANITATION DISTRICT NO. 2's NOTICE OF PUBLIC HEARING NOTICE OF PUBLIC HEARING Notice is hereby given pursuamto California Health and Safety near fee. This fee has been set at$55 peryear($4.58 a month)for Code Section 5473.1 of a public hearing to be held by County residences, $33 per year for apartments and mobile homes, and Sanitation District No. 2 of Orange County, California. at $39 par 1,000/sq.R.of building space per year for commercial and 7:30 m.on Wednesday,April 18, 1990 a[the Orange Public industrial customers with larger discharges. User fees are not P ay P 9 used for new development. Fees for new development are paid for Ubrary,located at 101 North Censer Street,Orange,California. by the developer connecting to the sewer system. Said hearing is to be held for the purpose of reviewing wrrden reports pertaining to the providing of Sewer service for all Our oagoivg goal is to maintain effective and efficient wastewater properties within County Sanitation District No.2,and to con- management services.The challenges we must continuallyfacewa sider public comments regarding use of the County of Orange marescingservice demands as population grows,and increasingly property tax roll for billing of District sewer service charges for stringent environmental regulations. The fees reflect the sewer collection,treatment and disposal services for the fiscal immediate financial needs of your District,-and will be reviewed year commencing July 1, 1990. and adjusted sa needed to continue protecting public health and our precious environment. PROPOSED BILLING AND COLLECTION METHOD Los Angeascounr a X'e County Sanitation District No.2 is proposing to collect its sewer B e, s o service user is sa r separate line item an the annual property tax o� bill. Useof this morccoatc0'ectiv¢elternativemethod would allow the Districts and its customers to save the coats of producing, Rirwatln. s e� 9 mailing and handling separate utility bills for direct payments �r e o gem o Every property owner within the District receives an annual fie ^ property tax bill from the County Tax Collector. California Health and Safety Code Sectiou5473 allows the District to place oursewer an den a userfee on this bill as a separate line item,thus providingthe user with the convenience of including payment for District No. 2 sewerage service with property laic payments. S tna 4+ a Therefore, effective with the billing year beginning July 1, 1990, the Board of Directors of District No. 2 is propo 1 use this. w of o billing method to help keep the cost of service chn' abover noticed public hearing is toconsider the propo to use the property tax bill to collect the annual sewer user fee instead of a separate direct and more costly billing method. a FURTHER INF RMATI i. OPS The question and answer section of this action attempts to address some of the questions you may have.In addition,two workshops have been scheduled where staff will provide more detailed information and will be available to answer any additional wastewater from yam home or business is collected by your local questions(see back side of mailer for locations). street sewer system,which is maintained by your city or sanitary distrieL The street sewera flow into large interceptor sewers in your area owned by County Sanitation District No. 2. District No. 2, the shaded was of the map,is one of nine Districts that make up the DISTRICT NO. 2 County Sanitation Districts of Orange County, OPERATING FUND which serve the metropolitan area of the No county.These Dist ictajointlyownandop¢ to RESERVES B DEFICIT PROJECTION the regional sewage treatment plants in 35 EXPENSES Fountain Valley and Huntington Beach. The Sanitation Districts are charged with 3X protecting public health and the environment. M CARRYOVER a REVENUE I zs The Sanitation Districts operations are regulated by federal and state environmental L ZD DEFICIT agencies.in recent years,these agencies have o RESERVES adopted and imposed more stringent Iawe and N regulations to protect our environment. In t5 order to comply with the new regulations,new $ advanced sewage treatment facilities,coating t0 EXPENSES REVENUE hundreds of millions of dollars, have been constructed. The additional facilities have s resulted in increased operating costa. 0 Rising costa and demeaning reserves were er-ae 88,99 MOD 90.91 91-@ 92-93 9344 forcing District No.2 into a fimncial criais by FISCALYEAR 1990 (see graph). To continue providing the high level of service you are accustomed to, District No.2 recently adopted a sewer service ` (REVISED) COUNTY SANITATION DISTRICT NO. 2 OF ORANGE COUNTY, EALIFURNIA MINUTES OF ADJOURNED REGULAR MEETING ..� April 18, 1990 - 7:30 p.m. Orange Public Library 101 North Center Street Orange, California Pursuant to adjournment of the regular meeting of April 11, 1990, the Board of Directors of County Sanitation District No. 2 of Orange County, California, met in an adjourned regular meeting at the above hour and date at the Orange Public Library. The Chairman called the meeting to order at 7:30 p.m. The roll was called and the Secretary reported a quorum present. DIRECTORS PRESENT: Roland E. Bigonger, Chairman, Norman E. Culver, Dan Griset, William D. Mahoney, James Neal , Carrey J. Nelson, Iry Pickler, and Don E. Smith DIRECTORS ABSENT: A. B. "Buck" Catlin, Arthur Newton, Wayne Silzel and Roger R. Stanton STAFF MEMBERS PRESENT: J. Wayne Sylvester, General Manager, Rita J. Brown, Secretary, Gary G. Streed, Thomas M. Dawes, Corinne Clawson, Jeff Esber and Judy Lee OTHERS PRESENT: Thomas L. Woodruff, General Counsel , Malcolm Jahr, Elisabeth Charron, Eileen Larcome, H. R. Kinder, Lewis R. Mote, Richard P. Thomas, Robert V. Peringer, Carole Walters, Dennis Duffy, Perry Walker, Bill Leming, Jan Duffy, George Gorham, Lee Kearney, Mildred Jahr, Robert Engelhardt, Chris Barnes, Dave Barnes, Lorraine John, Mira Arthur, Greg Bogart, C. F. Credell , M. Moore, D. Ebert, Ron Sands, Jim Houk, Al Burd, Charles A. Miles, Edward Mozer, Morris and Elsie Hammond, V. Bonaddio, Audrey Herdrich, Maynard Herdrich and Arlene Hughes Public Hearing on proposal to collect adopted annual sewer service char es on the ro ert tax bills and on the ewer ervice arge Report for 1 -91 Open Public Hearing The Chairman declared the hearing open at 7:32 p.m. He then announced that the purpose of the public hearing was to consider a written report pertaining to the providing of sewer service for all properties within the District, and the proposal to collect the adopted sewer use fee on the property tax roll beginning with the 1990-91 fiscal year. 4/18/90 DISTRICT 2 Staff Re ort on ra osed use of the The General Manager stated that the County oun y of range property tax bill Sanitation District is responsible for for collection of the annual sewer transporting, treating and disposing of Ter—vice charge sewage in a safe manner in accordance with strict federal and state laws to protect the public health and safety and the environment. He observed that some of the citizens attending the hearing had not had an opportunity to acquaint themselves with the role that the District plays in managing wastewater and showed a video presentation on the Districts' activities. The Director of Finance then reviewed the staff' s reports on District No. 2's financial plan, summarized as follows: The Orange County Sanitation Districts' cost of providing sewerage service to the community has been escalating rapidly because of the increasingly stringent federal and state laws and regulations requiring advanced treatment of wastewater to remove toxic materials and other pollutants from the sewage to assure protection of the public health and safety and the environment. To comply with the new stricter requirements, the Joint Sanitation Districts have constructed sophisticated treatment facilities at a cost of hundreds of millions of dollars over the past few years. For several years property tax revenues have been insufficient to meet the District's operating costs, and it has been necessary for the District to draw down its reserves. In fiscal year 1990-91, without appropriate measures to protect the District's financial integrity, it would have been necessary for the Board to authorize a transfer of $12 million in capital reserves from the District's Accumulated Capital Outlay Fund to the Operating Fund to pay the full costs of operating and maintaining the District collection system and its proportionate share of the operating and maintenance costs of the Joint Treatment Works. By 1993-94 the District will require additional revenues in the amount of $80.3 million to meet its operating expenses and maintain the solvency of the fund due to insufficient tax revenues. To address this fiscal challenge, in 1989, after considerable study of the District's long-range funding requirements, the Board adopted a financial program to avoid projected revenue shortfalls and provide the necessary income required to finance the District's rising operating expenses, as well as major capital expenditures for construction of master-planned sewerage facilities. The Board's adopted financial program includes a one-time connection fee of $2,270 per dwelling unit for residential property and a $450 per 1,000 sq. ft. charge for commercial , industrial and governmental property. The connection fee is used to pay for expansion of capital facilities to serve new development. Mr. Streed advised that in 1986 District 2 issued $44.3 million in long-term debt to protect their capital reserves. As the second element of the long-range financial program, to pay for costs of operating, maintaining and rehabilitating the sewerage system, the Board adopted annual sewer service fees, as follows: _ -2- p 4/18/90 DISTRICT 2 Type of Property Annual Fee - Single-family Residence $55.00 `J - Multi-family Residence/Mobile Home 33.00 - Commercial 39.00/1,000 sq. ft. - Industrial 39.00/1,000 sq. ft. - Governmental 39.00/1,000 sq. ft. The Director of Finance noted that the large commercial or industrial dischargers that place an inordinant demand on the District's system are also subject to an additional surcharge under a separate industrial waste ordinance that has been in effect since 1976. Some large industrial industrial dischargers pay as much as $729,211 per year under this program. The Director of Finance, utilizing a slide presentation, summarized the District's organizational make-up and their wastewater management program. He also reviewed the following three billing and collection alternatives that had been identified and evaluated by the staff: - Direct Billing and Collection by District This approach would require the Sanitation District to send a direct bill on a periodic basis to every property owner within the District. The one-time setup cost for this method is estimated at $432,000 plus an annual cost of $302,400, making the total cost for the first year $734,400. The projected five-year cost for the direct billing alternative would be $1,944,000. - Placement of User Fee on Local Water Service Bills for Collection and Remittance to District Under this method the sewer service charge would be included as a separate line item on the bill of the more than 20 water utilities that serve the properties within District No. 2. He noted that a major problem of this method is that with the numerous water purveyors involved it would be difficult to establish a uniform system which adds significantly to the cost; and the reluctance of the water utilities to become the billing agent. The setup cost for this alternative would be $374,000 plus an annual cost of $726,800, for a total cost for the first year of $1,100,800. The estimated five-year cost of performing this billing service is $4,008,000. - Placement of User Fee on Count of Orange Property Tax Bill for Collection an Remittance to District Under this alternative the sewer service charge would be included as a separate line item on the property tax bills for all properties within District No. 2. The setup cost would be $374,000. The annual cost of billing under this method is only $67,700. The total first-year cost would be $441,700 and the five-year cost is estimated `ft. to be $712,500. -3- 4/18/90 DISTRICT 2 ` Mr. Streed observed that this method would save the property owner both directly because of significantly lower costs to the District, and indirectly because the cost of making periodic payments by the l../ property owner would be reduced. Staff recommended this alternative as it is clearly the most cost-effective billing and collection method available. Districts 1, 3, 5, 6, 11 and 13 have already adopted this method for billing their user fees, and it has proven quite effective in keeping the administrative costs for billing and collecting fees under control in these six Districts. The Director of Finance reiterated that the rising costs to operate the District are due to higher mandated levels of treatment and increased energy costs. The long-range financial program was adopted by the District because the District's revenues and reserves were decreasing and soon the District would not have been able to meet its operational requirements without an additional revenue source. Mr. Streed then observed that although many of the issues posed by the public were not really relevant to the specific purpose of the hearing, he recognized that the citizens have a genuine interest in the activities of the Sanitation Districts and he, therefore, summarized responses to those questions that had been raised thus far in the three workshops and in telephone inquiries. He explained the role of the District as an operating utility providing an essential service necessary for the protection of the public health and safety, and indicated that the District was established solely to provide wastewater collection, treatment and disposal services to the community. The Director of Finance further explained that while the District has always had the statutory authority to levy a sewer service fee, it had historically financed its operations, maintenance and rehabilitation activities from the property tax. The adopted sewer service charge is based upon use, thus, he reported, it is not a tax and is not subject to Proposition 13 and 62 provisions. Property taxes are based on the value of the property and have no direct relationship to use. Mr. Streed reiterated that the reason for the proposal to collect this fee on the tax bill is because it is the most cost-effective method, and has no bearing on whether it is defined as a tax or a fee. Mr. Streed also reiterated the impact of evolving federal and state regulatory requirements on the District's activities and costs, the cost reduction measures implemented by the Districts, the basis of the fee structure for various purposes and for the various classes of users and the statutory provisions under which the fees were adopted, and then reviewed cash flow projections. The reduction in tax revenues resulting from the passage of Proposition 13 and its implementing legislation, combined with the higher energy costs, the effects of inflation over the past several years, and more stringent treatment requirements mandated by federal , state and local regulatory agencies, would result in depleting reserves and projected operating deficits for the District without the new fees. '^ k../ -4- 4/18/90 DISTRICT 2 The Director of Finance then highlighted the appeal process available to allow for an adjustment of fees in the event of a demonstrated inequity. Appeals relative to inaccurate billings or properties that are not connected to local sewers are handled on a case-by-case basis. The General Manager then reiterated that the purpose of the hearing was to receive public commentary on the District's proposal to collect the annual service charge on the property tax bill. He also advised that official notice of the hearing was mailed during the latter part of February and early March to 139,611 property owners of record on the last equalized assessment roll of the County of Orange, in accordance with the provisions of Section 5473.1 of the California Health and Safety Code. As prescribed by law, a legal notice of the hearing was published in the Orange County Register on March 28, 1990 and again on April 4, 1990. The hearing notice included the District's telephone number for citizens to call with questions or for more information. The staff received approximately 120 calls. Staff also conducted two workshops to answer questions about the proposal and the District's operations. The workshops were held at 7:30 p.m. on Tuesday, March 13, at the Fullerton Museum Center, 15 people attended; and Thursday, March 22, at the Backs Building in Placentia, 7 people attended. Receive and file Sewer Service Moved, seconded and duly carried: Charge Report for Fiscal Year 19 - 1 That the County Sanitation District No. 2 Sewer Service Charge Report for Fiscal Year 1990-91 be, and is hereby, received and ordered filed. Receive and file written comments The General Manager reported that 89 written communications had been received regarding the sewer service fee and proposed method of collection and summarized the comments; whereupon, It was moved, seconded and duly carried: That the written communications received from the property owners listed on "Attachment 1" to these minutes, be, and are hereby, received and ordered filed. Oral Public Comments Chairman Bigonger reported that it has been the Board's experience that most residents of the County do not have the information nor knowledge concerning the importance of the role that the County Sanitation Districts play in their lives. In order to guarantee the protection of the public health and our environment, particularly the ocean waters, as described and shown earlier in the meeting, very elaborate and complex and costly procedures must be undertaken to provide the sewage treatment service for the residents. -5- 4/18/90 DISTRICT 2 ` The Chairman reiterated that the purpose of the meeting was not for the Board to consider the adoption of a sewer use charge or to consider increasing an existing use charge. The sole purpose was to select the method by which the charge, which was adopted by the Board on �.✓ February 14, 1990 after two years of study and five public meetings, is to be collected. It is now important to find the most cost-effective way of collecting this revenue, which is necessary to pay for District 2's sewer system and its share in the operation and maintenance of the joint treatment and disposal facilities. Mr. Bigonger acknowledged that some persons were concerned about the adoption of fees, charges and taxes, but again stressed that this is not the scope of this hearing. He asked that any testimony or statements given address solely the collection method, and not whether the fee was liked or disliked. The Chairman invited anyone with some specific concerns regarding the charge to leave their name and address and the staff would contact them. He added that if they wished to write the District, their request would be given due consideration and answered at a later date. The Chair then recognized the following persons who addressed the Board regarding the proposed method for billing and collection of the annual sewer service charge: - Malcolm Jahr, 17292 E. Orange, Yorba Linda Mr. Jahr questioned the cost differential between the alternative utilizing local water service bills for collection and remittance to the District or utilizing the County of Orange property tax bill for collection. It was his contention that since local water service companies already had a billing system in place, the cost shouldn't be as high as indicated by the District to add their sewer service fee. He objected to use of the tax bill and requested that the charge be collected on the local water bills, which would, in his opinion, afford him the opportunity to lodge any protest regarding the sewer service fee with his elected City representatives rather than with the District 2 Board. In response, staff reiterated that there were numerous local water purveyors, and it would be difficult to develop agreements with each of them. In addition, the service charge to collect said fee on behalf of the District (probably 5%) , would be added to the user fee in order to provide the necessary revenue to meet the District's financial obligations. Additional staffing required for recordkeeping associated with this method of collection also accounts for some of the additional costs. - Elisabeth Charron, 10432 Mildred Avenue, Garden Grove Ms. Charron objected that the Notices of Public Hearing were sent as bulk mail . She also criticized the workshop and public hearing sites. �.✓ -6- 4/18/90 DISTRICT 2 Ms. Charron protested that if the user fee is placed on the County tax bill , the property owner would be forced to pay the charge along �..� with their taxes inasmuch as the County will not accept a partial payment of the bill. She contended that the District had not fully investigated the costs of other alternative methods of collection such as local water bills. She also questioned the equity of the fee structure and the process for contesting the charge. Ms. Charron stated her objection to the public notice procedure the District is required to follow in connection with adoption of an ordinance establishing these fees and for any future adjustments in the fees. - Eileen Larcome, 4605 Wimaurie Avenue, Santa Ana Ms. Larcome stated that she objected to placement of the sanitary sewer service charge on the property tax bill . She suggested the use of television to publicize the fee. She questioned whether it was an annual fee and if it might be adjusted at some point during the year. She also inquired whether she would know if the fee were increased. In response, the District's General Counsel explained that this is an annual sewer service charge. Any adjustments in the fee as a result of futher study and recommendation by the staff would require adoption of a new ordinance. The notice of public hearing on adoption of the ordinance would be published in a major newspaper, as required by statute. The adjusted fee would still appear as a separate line item on the tax bills. - H. R. Kinder, 1342 E. Hickory Lane, Orange Mr. Kinder also commented on the notice procedure relative to adoption of the sanitary sewer service charge. He also stated that he assumed future fees might decrease rather than increase. He expressed concern that the fee would not be itemized on his tax bill . In response, staff advised that the fee will be shown as a separate line item on the tax bills. - Lewis R. Mote, 527 N. Harbor Blvd. , Anaheim Mr. Mote stated that he realized that his questions relative to the District's high operating costs listed on the Notice of Public Hearing were not the issue that evening, but still wanted to register his concern relative to the increase in expenses projected through 1993-94. He added that he was in agreement with the previous speakers' comments. - Richard P. Thomas, 4431 East Olivebranch Way, Anaheim Mr. Thomas addressed the issue of equitability relative to the adopted charges for commercial and industrial buildings. He stated that, in his opinion, it would be more equitable to base the charge on water use rather than on square footage. Mr. Thomas urged the District to find a more equitable method of computing the fee. -7- 4/18/90 DISTRICT 2 ' - Robert V. Peringer, 231 So. Parklane, Orange Mr. Peringer expressed his appreciation for the services of Sanitation District No. 2. He then stated his objection to collection of what, in his opinion, were additional taxes in the guise of a user fee. He commented on the increase in the budget this year for the County of Orange and felt the District' s financial requirements should be included in that amount. Mr. Peringer also inquired whether the Districts collect user fees for other governmental agencies to evade the limitations of Proposition 13. In response, staff pointed out that County Sanitation District No. 2 was a special district created under the County Sanitation District Act and was separate and apart from general purpose government known as Orange County government. Accordingly, District No. 2's operation and maintenance requirements are not included in the County budget. Staff also advised that none of the fees collected on behalf of the Sanitation Districts go to any other agency. All fees are solely for the collection, treatment and disposal of sewage. - Carole Walters, 534 N. Shaffer Street, Orange Ms. Walters stated that she had mistakenly believed that the hearing that evening concerned the adoption of the sanitary sewer service fee. She also commented that she felt the fee structure should Include an allowance for senior citizens. - Dennis Duffy, 11752 Reva Drive, Garden Grove Mr. Duffy expressed his concerns relative to the equitability of the fee. He suggested that the criteria for establishing the charge be based on water usage rather than the type of property connected to the sewer. The Board questioned whether he was suggesting that sewage meters be installed in every household and if he would prefer to pay the higher cost of metering. Mr. Duffy replied that the District should work with the local water companies to receive information necessary to bill the property owners. He did, however, acknowledge that it would be difficult to determine the actual amount of water being discharged into the sewer based solely upon the amount of water received. He contended that the District could obtain the necessary information from the local water companies to compute the bills and still collect the charges on the property tax bills. Mr. Duffy also conceded that he would prefer to pay the lowest cost possible. - Perry Walker, 12281 Lampson, Garden Grove Mr. Walker questioned the criteria used by the District to establish the fee for a single-family residence versus an apartment building. -8- 4/18/90 DISTRICT 2 Mr. Walker also questioned whether apartment owners would be properly billed for the number of units they owned. He noted that he had observed various apartment complexes in his area that were not on record with the County of Orange as apartments. In response, staff advised that studies conducted by the Districts, as well as other agencies, indicate that the discharge from apartments is approximately 60% of the amount discharged from a single-family residence. Accordingly, the fee structure provides for a 60% differential in the charge per unit. Multiple units are billed based on the County Assessor's official property records. - Bill Leming, 2720 E. Walnut Avenue, 87, Orange Mr. Leming stated his objection to the method of collection. He also contended that the sewer service charges should be based on water usage, not on the type of property owned. In his opinion, the user fee is more like a property tax and is inequitable, especially for the owners of small commercial buildings. He reiterated that his main complaint was that the District didn't provide for equitability in the fee structure. - Jan Duffy, 11752 Reva Drive, Garden Grove Mrs. Duffy also questioned the equity of the fee structure because of different household occupancies. She stated that the charge should be collected on water bills and should be based on usage rather than be a flat fee. In conclusion, in response to the public commentary on equitability of the user„fee, staff reiterated that large commercial and industrial dischargers pay under a separate ordinance based upon their demand on the sewer system. Some pay as much as $729,000 per year in District 2. Staff also pointed out that a new study would be conducted to address the equity issue, and that any forthcoming recommendations for changes would be submitted to the Districts' Boards at a later date. Close hearing There being no further public comments, the Chairman then declared the hearing closed at 9:10 p.m. Adapting a finding that the Moved, seconded and duly carried: majority of property owners have not protested relative to That the Board of Directors does hereby collectin2 annual sewer service find that a majority of the owners of Charges on the property tax bills the property, which is the subject of the Sewer Service Charge Report for Fiscal Year 1990-91, have not protested the proposed collection of annual sewer service charges on the property tax bills. V./ -9- 4/18/90 DISTRICT 2 ' Ado tion of Sewer Service Char a Moved, seconded and duly carried: Report for sca ear 1 - 1 �as� That the County Sanitation District No. 2 Sewer Service Charge Report for Fiscal year 1990-91 be, and is hereby, adopted. Directing the County Auditor- Moved, seconded and duly carried: Controller to include sewer sery ce char es on ro ert tax bills That the Board of Directors hereby beginning in 1 -91 adopts Resolution No. 90-38-2, directing the County Auditor-Controller to include sewer service charges on property tax bills beginning in fiscal year 1990-91 for collection, pursuant to Ordinance No. 210 of County Sanitation District No. 2 of Orange County. Said resolution, be reference hereto, is hereby made a part of these minutes. Adjournment Moved, seconded and duly carried: That this meeting of the Board of Directors of County Sanitation District No. 2 be adjourned. The Chairman then declared the meeting so adjourned at 9:12 p.m. , April 18, 1990. <za�k� Secretary, Bo4td of Directors County Sanitation District No. 2 of Orange County, California �../ -10- COUNTY SANITATION DISTRICTS el ORANGE COUNTY. CALIFORNIA 1N"BLUE AVENUE 00 EON M7 April 11 1990 AMNTAIN vuwr.CALIFORNIA EE)EE.ELE) v P (714)9EE.2411 DISTRICT 2 PROPOSAL TO COLLECT USER FEE ON PROPERTY TAX HILL Summary of Written Comments Received Through April 10 , 1990 SUPPORT PROPOSAL PREFER USE OF WATER BILL Marilyn R. Cochran Greene and Frazier 211 S. Redwood Ave. Certified Public Accountants Brea, CA 92621 1240 Lakeview Ave. Anaheim, CA 92807 DISTRICT SHOULD CUT COSTS INEOUITABLE RATE STRUCTURE L. T. Mazzola William S. Harvey 2025 Firethorne Ave. Developer & Real Estate Brokar Fullerton, CA 92635 PO Box 1514 Arroyo Grande, CA 93421 Stanford Park PROPOSITION 13 10352 Stanford Ave. Garden Grove, CA 92640 Robert M. Ames 1527 W. Harle Place Anaheim, CA 92802 "ATTACHMENT 1" TO APRIL 18, 1990 MINUTES DISTRICT No. 2 PROPERTIES NOT CONNECTED TO SEWER Ana ei Barksdale, Anthony W. Harris, Paul D. Barksdale, Patricia A. 4910 Santa Ana, Cyn Rd, 181 S. Possum Hollow Anaheim, CA 92807 Anaheim, CA 92807 Barnes, Ronald E. Liggett, Francis Sherman Barnes, Carol M. 571 S. Peralta Hills Dr. 7675 Eucalyptus Way Anaheim, CA 92807 Anaheim, CA 92808 Chadez, Victor Lopez, Antonio H. 5426 E. Orangethorpe Ave. 1342 N. Miller St. Anaheim, CA 92807 Anaheim, CA 92806 Chavez, David J. Ponteprino, Meyer E. 4420 E. La Palma Ave. 1471 N. Placentia Ave. Anaheim, CA 92807 Anaheim, CA 92806 Fountain, Evart C. Ritter, Larry R. 1432 W. Roberta Ritter, Maria E. Fullerton, CA 92633 191 S. Possum Hollow Anaheim, CA 92808 Hale, Patricia Ann 101 S. Eucalyptus Dr. Vista Del Rio Ro Water Group Anaheim, CA 92808 PO Box 17073 Anaheim, CA 92817 Fullerton Donegan, Craig R. Taylor, Burt L. Donegan, Pamela T. 1220 Linda Lane 3110 Las Faldas Dr. Fullerton, CA 92631 Fullerton, CA 92635 Moisi, Joseph A. Teasdale, Audrey B. 1300 Sunnycrest Dr. 400 E. Las Palmas Dr. Fullerton, CA 92635 Fullerton, CA 92635 Garden Grove Garcia, Joe M. Garcia, Avalon 13141 Palm St. Garden Grove, CA 92643 DISTRICT No. 2 PROPERTIES NOT CONNECTED TO SEWER Orange Amusement Electronics Co. Moore, Melinda C. 19142 Glen Arran Lane 1638 N. Cambridge Orange, CA 92669 Orange, CA 92667 Bulthuis, Albert Oliver, Andrew L. 1962 N. Glassell St. 805 N. Lincoln St. Orange, CA 92665 Orange, CA 92667 Byers, Elaine Piper Paulus, Arthur E. 6705 E. Oak Lane PO Box 3035 Orange, CA 92669 Orange, CA 92665 Cosy, Robert C. Perez, Severiano J. 16522 E. Cumberland Ave. Perez, Ruth A. Orange, CA 92665 16542 Beim Ave. Orange, CA 92665 Cooper, Jon W. Cooper, Eathlin M. Ramer, Mary B. 962 Wanda Rd. 3042 N. Sheri St. Orange, CA 92667 Orange, CA 92665 Estes, Garmon Jr. Ritter, Maurice A. 1902 E. Collins 16372 Heim Ave. Orange, CA 92667 Orange, CA 92665 Flocken, Marie E. Schuck, Clifford D. 627 Cully Dr. 15581 E. Cully Dr. Orange, CA 92665 Orange, CA 92665 Hawkins, G. William Shanafelt, John G. Jr. 6807 E. Oak Lane 3827 W. Chapman Ave. Orange, CA 92669 Orange, CA 92668 Hoffman, William Spielman, Leonard 2396 N. Batavia St. 6719 E. Oak Lane Orange, CA 92665 Orange, CA 92669 Jefts, Richard M. Travernier, Ernest 16386 Fellows Dr. 16312 Fellows Dr. Orange, CA 92665 Orange, CA 92665 Johnson, Clayton W. Jr. Walker, William R. 12431 E1 Rancho Place 16352 Heim Ave. Garden Grove, CA 92640 Orange, CA 92665 LeCouix, James E. Witt, Richard D. PO Box 5887 956 N. Shaffer St. 1432 North Glassell Orange, CA 92667 Orange, CA 92613 DISTRICT No. 2 PROPERTIES NOT CONNECTED TO SEWER Placentia Olander, Harold H. Phillips, Leeta M. PO Box 51 2419 N. Rose Dr. Placentia, CA 92670 Placentia, CA 92670 Santa Ana Quick, Alvin E. Quick, Nellie W. PO Box 5094 Santa Ana, CA 92704 Villa Park Ehlen, Lawrence H. Metz, Ramey B. 10232 Center Dr. 18605 S. Mesa Dr. Villa Park, CA 92667 Villa Park, CA 92667 Henderson, Dortha M. 18916 S. Mesa Dr. Villa Park, CA 92667 Yorba Linda Asta, Donald W. Crowder, Rutherford H. Asta, Ingrid M. 5072 Richfield Rd. 5373 Grandview Ave. Yorba Linda, CA 92686 Yorba Linda, CA 92686 Dutton, Roy Atzet, Frank C. 5642 Grandview Ave. 18820 Oriente Dr. Yorba Linda, CA 92686 Yorba Linda, CA 92686 Flatten, Orris H. Basham, U. H. 17745 Lomita Lane 4202 Merienda Lane Yorba Linda, CA 92686 Yorba Linda, CA 92686 Flynn, Patrick F. Baxter, Howard L. 5521 Grandview Ave. 4551 Rose Dr. Yorba Linda, CA 92686 Yorba Linda, CA 92686 Fox, Gregg G. Covey, Thomas A. 16882 Nightingale Lane 5462 S. Lake View Ave. Yorba Linda, CA 92686 Yorba Linda, CA 92686 DISTRICT No. 2 PROPERTIES NOT CONNECTED TO SEWER Yorba Linda (Con't) Hawkins, Eugene S. Morton, Emery L. 5432 Lakeview Ave. 19100 Pradera Lane Yorba Linda, CA 92686 Yorba Linda, CA 92686 Hoffman, Richard W. Mulkey, Larkin V. 5611 Kellogg Dr. 5832 Ohio St. Yorba Linda, CA 92686 Yorba Linda, CA 92686 Imperial-Rose Co. Oberjuerge, Robert A. 1920 St. Andrews Dr. 18847 Via Sereno Seal Beach, CA 90740 Yorba Linda, CA 92686 Jagusiak, Mark M. O'Shea, Rita Jagusiak, Mary B. 4611 N. Palm 19198 Skyview Knoll Yorba Linda, CA 92686 Yorba Linda, CA 92686 Page, Raymond A. Jensen, Larry W. PO Box 89 19192 Skyview Knoll Atwood, CA 92601 Yorba Linda, CA 92686 Prosser, Barbara Kroenlein, Dieter 4588 Danita Lane 5571 Fircrest Dr. Yorba Linda, CA 92686 Yorba. Linda, CA 92686 Sanderfer, Ruby E. Lankford, James W. 18491 Buena Vista Lankford, Judy Yorba Linda, CA 92686 4293 Avocado Ave. Yorba Linda, CA 82686 Shaver, Howard W. 16631 Lathrop Dr. Leonard, James K. Yorba Linda, CA 92686 Leonard, Dorothy M. 4911 Shaw Lane Shigekawa, William M. Yorba Linda, CA 92686 206 Copp Kula, HI 96790 Majors, William J. 4561 N. Palm Ave. Staumont, Ferdinand Yorba Linda, CA 92686 Staumont, Lanka E. 18101 Avolinda Dr. Merlo, Joe Yorba Linda, CA 92686 4912 Casa Loma Ave. Yorba Linda, CA 92686 Stewart, Robert 5641 Mountain View Ave. Meyers, Byron P. Yorba Linda, CA 92686 4761 Palm Ave. Yorba Linda, CA 92686 Studer, Leo L. Studer, Katherine A. McCormick, William C. 5374 Douglas Lane 4742 Palm Ave. Yorba Linda, CA 92686 Yorba Linda, CA 92686 DISTRICT No. 2 PROPERTIES NOT CONNECTED TO SEWER Yorba Linda (Con't) Warren, Herbert M. Williams, Sidney H. 5251 Highland Ave. 5271 Cherrylee Lane Yorba Linda, CA 92686 Yorba Linda, CA 92686 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. %2- held on 19q O was duly posted for public inspection at the main lobby of the District' s offices on , 199 O. IN WITNESS WHEREOF, I have hereunto set my hand this JZ'� day of 19-90. Rita J. BrowrY, Secretary he Board of Directors of County Sanitation District No. Q_.. of Orange County, California