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HomeMy WebLinkAboutMinutes 1983-06-09COUNTY SANITATION DISTRICT NO.6 OF ORANGE COUNTY,CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING June 9,1983 —7:30 P.M. 77 Fair Drive Costa Mesa,California pursuant to the adjournment of the regular meeting of June 8,1983,the Board of Directors of County Sanitation District No.6 of Orange County,California met in an adjourned regular meeting at the above hour and date in the Costa Mesa City Hall Council Chambers. 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:Elvin Hutchison,Chairman,Ruthelyn Plummer DIRECTORS ABSENT:Roger Stanton - STAFF MEMBERS PRESENT:J.Wayne Sylvester,Assistant General Manager, William H.Butler,Secretary,Thomas M.Dawes, Rita Brown,Ray Young OTHERS PRESENT:Thomas L.Woodruff,General Counsel,Erma A. Batham,Joe DeCarlo,David Dvorak,John Harris, Jack Keenan,George Mason,John W.McCray, Rita Nugent,Gail Pickart,Jo~eph Reilly, Steven Riddle,Jean Robins,Allen Schwalbe, Richard Seward,Sidney Soffer,Harvey Weisinger,Andrew Whitney,Bruce Mattern, Florine Reichie,Bob Oman,Rob Haymers Public Hearing on proposed The Chairman declared the hearing on Ordinance No.607 Establishing Ordinance No.607,An Ordinance of the Board Sanitary Sewer Service Charges of Directors of County Sanitation District No.6 of Orange County,California, Establishing Sanitary Sewer Service Charges,and the County Sanitation District No.6 Sewer Service Charge Report for Fiscal Year 1983—84,open at 7:30 p.m. The Assistant General Manager reported that this was the time and the place noticed for the purpose of receiving a written report pertaining to the providing of sewer service for all properties within the District and to consider Ordinance No.607 to establish a fixed service charge to be collected on the property tax roll for the 1983—84 fiscal year. Official notice of this hearing (held jointly with a public hearing of the Costa Mesa Sanitary District)for the purpose of establishing sewer service charges,was mailed on May 23,1983,to over 27,000 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. —1— District 6 June 9,1983 As prescribed by law,a legal notice of the hearing was publi~hed in the Orange Coast Daily Pilot on May 17,1983 and again on May 25,1983.In addition,~advertisements describing the proposed sewer service fees and announcing the~public:workshops and hearing were published in the Daily Pilot on May 23,26 and 31,l983~,and in the Costa Mesa News on May 25 and June 1,1983.News releases weje a1so~provided to the press on May 23,1983. The Assistant General Manager then described other staff effo~ts to inform the public of the proposed sewer service fee program,including: —Three public workshops as follows: No.1 —On May 31 in the Costa Mesa City Council Char4bers Attendance:26 •No.2 —On June 2 in the Costa Mesa City Hall Council Chambers Attendance:26 No.3 —On June 6 at the Neighborhood Community Center on Park Avenue Attendance:35 —Meeting with the Board of Directors of the Costa Mesa Chamber of Commerce on May 17th;Attendance:11 —Letters mailed to the presidents of the 14 homeowner associations in the City of Costa Mesa. —Contact with the presidents and/or program directors of~several professional and service clubs in the District and offering to speàk~to their membership, including the Lions,Kiwanis,Rotary,Optimists and the~Newport—Costa Mesa Board of Realtors. Mr.Sylvester reported that the purpose of the hearing was to consider a resolution of the serious financial problems faced by District No.6.He!repor1~ed that there were three major reasons for these financial problems.First,!District No.6 has an old sewer system which is in need of major rehabilitation.Sebond,operating costs have increased~dramatically over the past several years due to!factors beyond the control of the Districts,such as,skyrocketing energy costs,~sca1ating inflation, and more stringent treatment requirements imposed by Federal and State agencies. Finally,the District’s revenues have decreased by over 60%sihce 1978. Following a brief slide presentation depicting the issues facing the District,Mr. Sylvester summarized the public commentary to date which dealt!primarily with the issues of: —Proposition 13 and the issue of tax vs.fee —The equitability of the proposed system of charges —Whether or not the proposed fees would be used to pay fOr sewe~rs to accommodate growth —The relationship of the local sewer system operated and~mainta~ined by the Costa Mesa Sanitary District and the regional system of County Sanitation District No.6 —2— ~istrict 6 June 9,1983 He also reported that 512 of the response cards attached to the mailed notice of the hearing were returned. —161 property owners indicated that their properties were not connected or they were unsure whether their properties were connected to the local sewer system —213 owners questioned the accuracy of the data upon which their charge was based or the calculation of the charge —12 owners advised of a change in ownership —19 owners questioned the Proposition 13 issue —91 owners merely returned the card with rio response —16 owners had miscellaneous comments —2 owners sent in checks in payment of the fees - The Districts staff also received 205 telephone calls asking the same kinds of questions raised at the public workshops. The Assistant General Manager then addressed each of the issues raised in the public meetings.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.Mr.Sylvester fu,rther 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 60%reduction in tax revenues resulting from the passage of Proposition 13 and its implementing legislation combined with higher energy costs,the effects of high inflation over the past several years,and more stringent treatment requirements mandated by Federal and State regulatory agencies have resulted in operating deficits for the District. He indicated that the proposed sewer service fee is based upon usage of the sewer system,whereas property taxes are based upon the value of the property and have no direct relationship to use,and further pointed out that it was the Board’s declared intent that the fee be as equitable as possible,all factors considered.Mr. Sylvester also explained that the reason for collecting the fee on the property tax bill is that it is the most cost—effective billing and collection method available, and results in lower costs to each property owner. The Assistant General Manager and the General Counsel highlighted the appeal process available to all property owners to allow for an adjustment of fees in the event of a demonstrated inequity,and stated that property owners had been encouraged to send in the postcards attached to their notices to initiate staff evaluation of any problems perceived by the property owner. Mr.Sylvester then outlined recommended adjustments to the proposed District fee schedule published in the notice.The downward adjustments in the proposed fees for small apartments with only one bathroom facility that had been converted to condominiums and for commercial operations such as warehouses which have limited sewer usage were developed based upon public comments made at the three workshops. —3— I District 6 June 9,1983 Following the staff report,the Secretary reported that four formal communications regarding the proposed sewer service fee had been received,wI-~ereupon it was moved, seconded and duly carried: That the following written communications regarding proposed sewer service charges, be,and are hereby,received and ordered filed: —Letter dated May 26,1983,from Mr.&Mrs.C.E.Duvall of 1168 Atlanta Way, Costa Mesa —Letter dated June 1,1983,from Security Pacific National Bank of 600 Wilshire Boulevard,Los Angeles —Letter dated June 6,1983,from Mr.Joseph W.DeCarlo of 2024 Balearic Drive, Costa Mesa —Letter dated June 7,1983,from Mr.W.K.Patrick of 2198 Pacific Avenue, Costa Mesa The Chair then recognized the following persons who addressed the Board regarding the proposed sewer service charges: Jack Keenan Harvey Weisinger David Dvorak Erma Batham Joseph Reilly Andrew Whitney Allen Schwalbe John W.McCray John Harris Joe DeCarlo George Mason Rita Nugent Gail Pickart Richard Seward Sidney Soffer Steven Riddle Jean Robins Each addressed the Board and expressed opposition to the propo~sed service charge,the reasons therefor being those previously summarized by staff from the public meetings. Following responses to the public oral comment by Directors,counsel and staff,the Chairman declared the hearing closed at 10:58 p.m. Adopt a finding that the majority Moved,seconded and duly carried: of property owners have not protested the proposed sewer That the Board of Directors do hereby find that service fee a majority of the owners!of the property,which is the subject of the Se~.ier Service Charge Report for Fiscal Year 1983—84,have not protested said sewer service charge. Receive,file and adopt Sewer Moved,seconded and duly~carried: Service Charge Report for Fiscal Year 1983—84 That the County Sanitation District No.6 Sewer Service Charge Report fo~r Fiscal Year 1983—84, be,and is hereby,received,ordered filed and adopted. Second reading of proposed Moved,seconded and duly1 carried: Ordinance No.607 That Ordinance No.607,An Ordinance of the ~IIJJ~ Board of Directors of County Sanitation District No.6 Establishing Sanitary Sewer Service Charges,be read by title only;and —4— ~istrict 6 June 9,1983 FURTHER MOVED:That the second reading of said ordinance in its entirety be,and is hereby,waived;whereupon the Secretary read Ordinance No.607 by title only. Adopting Ordinance No.607 Moved,seconded and duly carried by the following roll call vote: That Ordinance No.607,An Ordinance of the Board of Directors of County Sanitation District No.6 Establishing Sanitary Sewer Service Charges,as amended,be,and is hereby,adopted: AYES:Directors Elvin Hutchison (Chairman),Ruthelyn Plummer NOES:None ABSENT:Director Roger Stanton Directing County Auditor Moved,seconded and duly carried: Controller to include sewer service charges on 1983—84 property tax That the Board of Directors hereby adopt bills,pursuant to Ordinance No Resolution No.83—80—6,directing the County 607 Auditor—Controller to include sewer service charges on 1983—84 property tax bills for collection,pursuant to Ordinance No.607,An Ordinance of the Board of Directors of County Sanitation District No.6 Establishing Sanitary Sewer Service Charges. Adjournment Moved,seconded and duly carried: That this meeting of the Board of Directors of County Sanitation District No.6 be adjourned.The Chairman then declared the meetirig.so adjourned at 11:03 p.m., June 9,1983. Secretary of the Board of Directors County Sanitation District No.6 of Orange County,California —5— •/i•1!