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Home My WebLink AboutMinutes 1973-03-21COUNTY SANITATION DISTRICT NO.2 MINUTES OF ADJOURNED REGULAR MEETING March 21 1973 -7:00 p.mio~i.4 Ellis Avenue Fountain Valley,California Pursuant to adjournment of the regular meeting held March iLl.,1973,the Board of Directors of County Sanitation District No.2,of Orange County,California,met in an adjourned regular meeting ~t the above hour and date,in the District offices. The Chairman called the meeting to order at 7:00 p.m.The roll was called,and the Secretary reported a quorum present. Don E.Smith (Chairman),Rudy Castro,Norman E.Culver, Robert Finnell,Donald Fox, Wade Herrin,Edward Just, Robert Nevil,Robert Root, Mark Stephenson,and Donald Wirin DIRECTORS ABSENT:Ralph Clark STAFF MEMBERS PRESENT:Fred A.Harper,General Manager, J.Wayne Sylvester,Secretary, W.N.Clarke,Robert Webber, and Rita Bro~m OTHERS PRESENT:C.Arthur Nisson,Ernest Bodnar, and Donald Martinson __________________________ The General Manager reviewed ________________________ the consultant’s report entitled __________________________ Financing Major Sewerage Improve __________________________ ments prepared for District No.3 __________________________ by Stone &Youngberg,Municipal _______________________ Financing Consultants,Inc.,and summarized the following findings in the report: To optimize equity among users and potential users of the District’s sewerage system,the consultants recommended that District No.3 consider adoption of sewer connection fees as a new source of revenue. The purpose of the connection fee would be to recover costs of providing sewerage facilities in the immediate future,which would have sufficient built-in capacity to serve future users. Based on the estimated capital cost of providing sewerage facilities,projected flows from residential land uses and current land use developments within District 3,the consultant recommended establishing a residential unit connection charge of $250. DIRECTORS PRESENT: C Review and comparison of recommended connection charges for District No.3 and connection charges currently proposed for District No.2 and recommendations contained Commercial and industrial uses were considered in the same manner as residential uses,and the consultant recommended a general guideline for industrial and commercial connection charges on a square footage basis of $500 per 10,000 square feet. The consultant further reco~nended a general obligation bond issue for District No0 3 to finance their near future construction needs0 However,District 3’s cash flow demands are considerably greater than District No0 2,and it does not appear,at this time,that District No,,2 need consider a bond issue in the immediate future to meet their cash flow requirements;sub ject,however,to final detei~znination of the ~vironmental Protection Agency with regard to eecondary treatment requirements0 The Chair then recognized Mr.Ernest Bodnar of Stone &Youngberg, who had prepared the District No.3 report0 Mr.Bodnar further reviewed the findings and recommendations contained in his report prepared for District No,3,He pointed out the developments and trends observed in the County which influenced the conclusions and recommendations in the .report and noted that as the basis for formulating connection charges,unit costs of providing trunk sewer and sewage treatment and disposal capacity were recommended; and that average anticipated sewage flows from residential land uses which have served as the basis to design Master Plan trunk sewer facilities,were recommended as the basis for computing the connection fee. Mr.Bodnar emphasized that the intent of their recommendation was to establish,insofar as practicable,a revenue program which would demonstrate an equitable method of charges to the user$,both pre sent and future,of the Districtts system. The General Coiiisel then reviewed provisions of Senate Bill 90, recently adopted by the State Legislature which prohibits an increase in the tax rate over and above the current fiscal year and seriously restricts the tax revenue producing ability of the District.. ____________________ Don Martins on of Lowry & _____________________ Associates,District’s con ______________________ sulting engineers,distributed ____________________ maps depicting the.District’s _______________________ existing and proposed trunk sewer system.Mr.Martinson observed that certain facilities were presently flowing at capacity and pointed out those proposed Master Plan facilities which were most urgently needed to relieve the existing system. He also reviewed the construction scheduling and the respective share of the cost of the proposed joint facilities of District No.2 and the upper basin entities, Following the report,Mr.Harper requested direction from the Board in the event the Directors felt that any of the Master Planned facilities should receive priority reconsideration #2 3/21/73 0 0 Report of E~gineer on evaluation of current District needs and Master Plan sewer con struction scheduling 0 —2-- #2 3/2l/T3 Declars intent to The Board entered into a implement connection lengthy discussion concerning charges the propriety of establishing connection charges in District No.2 identical to those proposed for District No.3.Several Directors expressed their views with regard to the proposed increase in the fee over what was originally recommended by the Special Committee for Studying Connection Fees and Annexa tion Policy of the District.A primary concern of the Directors was that fees which are established should demonstrate an equitable charge for services provided by the District. Following further deliberation regarding alternative methods of funding the District’s cash flow requirements,it was moved and seconded,that the Board of Directors hereby,declares Its intent to adopt an ordinance implementing connection fees consistent with those fees proposed to be adopted by District No.3 pur suant to recommendations of their financing consultant. During the d’iscussion that followed,it was reiterated that the proposed fees were recommended as a method of achieving an equitable distribution of charges for District services,not merely as a method to finance the District’s short-term cash requirements.In the event connection fee revenues enable accum ulation.of adequate reserve funds,the Distric.t could then con sider lowering the current tax rate to equalize their revenue program.It was reco~ized that the District’s cash flow require ments could fluctuate considerably based upon final determination by the Environmental Protection Agency of the definition of secon— dary treatment. After a clarification of the intent of the proposed ordinance with regard to applicability of connection fees to property presently developed and serviced by septic tanks,the motion was restated and the question called for.The motion carried by the following roll call vote: AYES:Directors Don Smith (Chairman),Robert Finnell,Wade Herrin,Edward Just, Robert Nevil,Robert Root and Mark Stephenson NOES:Directors Rudy Castro,NormanE.Culver, Donald Fox and Donald Winn •ABSENT:Director Ralph Clark It was then moved seconded and duly carried,that the proposed ordinance establishing connection fees be amended to provide that currently developed properties discharging into septic tanks be allowed a period of one year to connect to the sewer system without charge;and, FURThER MOVED:That consideration of the proposed connection charge ordinance be considered at a public hearing,the time and date to be determined by the Board at a later date. Discussion re report of Following a brief discussion Special Committee on concerning the report of the Directors’Fees for Special ConmLittee for Studying Concurrent Meetings Directors’Fees for Concurrent Meetings,distributed at the March 14 Board Meeting,Joint Chairman Finnell stated that he had requested that copies of said report be forwarded to each agency represented on the Joint Boards. -3- #2 3/21/73 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 meetthg so adjourned at 8:40 p.m.,March 21, 1973. Chairman,Board of Directors of County Sanitation District No.2 ATTEST: Secretary,BOard of Directors of County Sanitation District No.2