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Home My WebLink AboutMinutes 1985-05-29COUNTY SANITATION DISTRICT NO.1 OF ORANGE COUNTY,CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING May 29,1985 —4:00 P.M. 10844 Ellis Avenue Fountain Valley,California Pursuant to the adjournment of the regular meeting of May 8,1985,the Board of Directors of County Sanitation District No.1 of Orange County,California met in an adjourned regular meeting at the above hour and date in the Districts’Administrative Offices. The Chairman called the meeting to order at 4:00 p.m.The roll was called and the Secretary reported a quorum present. DIRECTORS PRESENT:Robert Hanson,Dan Griset,Ronald B. Hoesterey,Roger Stanton DIRECTORS ABSENT:None STAFF MEMBERS PRESENT:J.Wayne Sylvester,General Manager,Rita Brown,Secretary,William H.Butler,Gary Streed,Corinne Clawson OTHERS:Thomas L.Woodruff,General Counsel,Don R. Griffin ************* Directing staff to implement an The General Manager reported that in alternative supplemental user fee October 1984 the Board adopted the program based on water meter size District’s long—range financial plan. This program included the following fee schedule to fund the District’s financial needs: Single—Family Multi—Family Commercial Effective Fee Type Residential Residential Ind/Govmntl Date One—Time Connection $500/Dwelling $500/Dwelling $l00/l,000 1/01/85 Fee Unit Unit Square Feet Annual User Fee $60.00 $36.00 $42.95/1,000 7/01/85 Square Feet This long—range financial program was adopted after considerable study to avoid a then—projected $17.8 million shortfall in revenues required to finance,the District’s operating expenses,which are escalating due to rising costs of new advanced treatment required by federal and state regulatory agencies as well as construction of master—planned facilities improvements. Mr.Sylvester also indicated that since the Board authorized implementation of supplemental user fees commencing in 1985—86,the staff had been working closely with the County Assessor to develop a data base of all customers in —1— 5/29/85 District No.1 and to modify existing computer programs developed by the Assessor to enable the proposed user fee to be placed on the 1985—86 CountyofOrangepropertytaxbill.The Assessor’s staff has beenworkingdiligentlyinsupportoftheDistrict’s user fee implementation program,however,other statutory commitments,as well as the Assessor’s limited staff resources,have,delayed completion.of..both the programmingmodificationsanddevelopmentoftheuserdatabase,specifically due to thelargenumbersofcommercialandindustrialfacilitiesthatneedtobeidentifiedinDistrictNo.1,and it does not appear as if the Assessor willbeabletocompletethenecessaryworktoenableimplementationofthesewerservicechargein1985—86 utilizing the Assessor’s base. The General Manager also noted that several major things have occurred thatwillimprovetheDistrict’s short—term financial condition: —delays in construction of major capital improvements at the Joint Works treatment facilities pending the Joint Boards decision to form proposedDistrictNo.14 to provide sewer service to the Irvine Ranch Water District (IRWD)service area —the potential financial benefit to District No.1 as a result of allocation of funds to the District from IRWD’s purchase of capacity in the Joint Works facilities relative to formation of proposed District No.14. He pointed out,however,that long—term fiscal requirements would be increased because of the Joint Boards decision to shift calculation of each District’s percentage of equity in the Joint Works from a three—year weighted average of assessed valuation and flow to a 100%flow—based equityownershipapproachwhichwillincreaseDistrictNo.l’s share of needed treatment plant improvements based on the District’s actual,use of the jointtreatmentanddisposalfacilities. Due to these unavoidable delays,and in accordance with the,Board’s direction at the April 24th meeting,the staff proceeded to develop an alternative supplemental user fee program utilizing water p~irveyorinformationasabasisfordevelopinganequitableuserfee:and establishing adatabaseforbillingthefeesviatheCountytaxrollbeginninginfiscalyear1985—86.This method has been employed successfully elsewhere by the Districts. The General Manager reported that staff had performed a series of preliminary analyses of water meter and service address data from the CityofSantaAnatodeterminethefeasibilityofthisalternative.Based upontheresultsofthiswork,it appears feasible to implement the proposed alternative program in fiscal year 1985—86. The Director of Finance then presented various cash flow projections outlining the impact of the major changes that have occurred since the Board adopted the financial program and presented revenue projections of the alternative implementation plans to the Directors.It was pointed out that the District is not expected to have a cash short fall in 1985—86 if a userfeeprogramisnotimplemented.However,the District would have to depleteneededcapitalreservestounacceptablelevelstofundoperatingcostsandwould still have an anticipated five—year cash short fall of $16.5 million. Q —2— _________I ,.~.,.d~f~I1 ~II~ The projections reflect a need for supplemental user fees in 1985—86 sufficient to maintain the solvency of the District’s operating fund and provide for carry—over for the following year’s dry period funding requirements.Staff,therefore,recommended that the Board consider adopting the alternative user fee program based on utilizing the water meter size data base and implement.the foliowing,fee schedule tobe effective with. the 1985—86 fiscal year• Water Meter Size Proposed Fee 5/8”+3/4”$.26.40 1”+1 1/2”52.50 2~105.00 311 210.00 4”420.00 611 840.00 The user fees proposed for 1985—86 would most likely require increases in the following years to maintain a stable financial position in the operating fund,however,that would be determined each year based on an updated financial analysis. The Directors entered into a lengthy discussion regarding the requirements to implement an alternative supplemental user fee to maintain the District’s financial integrity to put it on a fiscally—sound basis over the long term. It was then moved,seconded and duly carried: That staff be,and is hereby,directed to proceed with implementation of the alternative supplemental user fee program based on water meter size. Introduction and First Reading Moved,seconded and unanimously carried: of Proposed Ordinance No.107 That Ordinance No.107,An Ordinance of the Board of Directors ófCounty Sanitàt’ión’pistrict NO.~’l of Orange..Cóunty, California,Amending Ordinance No.106 Pertaining to Sanitary Sewer Service Charges,be read by title only,and; FURTBER MOVED:That reading of said ordinance in its entirety,be,and is hereby, waived. Following the reading of Ordinance No.107 by title only,it was then moved, seconded and duly,carried: That Ordinance No.107,An Ordinance of the Board of Directors of County Sanitation District No.1 of Orange County,California,Amending Ordinance No.106 Pertaining to Sanitary Sewer Service Charges,be introduced and passed to the second reading on June 12,1985,at 7:30 p.m.at the District’s administrative offices. Approving Agreement re Purchase and The General Counsel reported that over Sale of Real Property with Scenic the past several years the District Tech Center 1984 has sold several increments of surplus right—of—way over the Santa Ana Trunk Sewer in the vicinity between MacArthur Boulevard and Sunflower Avenue,from Harbor Boulevard to the Santa Ana River.The District has received a —3— 5/29/85 request from a property owner adjacent to the District’s sirip to acquire a parcel of approximately 14,626 square feet at a price.of $i31,625.0O.The sale of the property wilinot affect the District’s operatIons and the District will receive a grant of easement for the underground;sewer with surface rights restrictions on the new owner.In accordance with the recent appraisal of the property,the GeneraiCounse].reconunendedj acceptance of the offer of Scenic Tech Center 1984.~~~~~~t ~\~‘~~ It was then moved,seconded and duly carried: To receive and file the General Counsel’s memo dated May 21,1985 re Agreement for Purchase and Sale of Real Property with Scenic Tech Center 1984;and, FURTHER MOVED:That the Agreement re Purchase and Sale of~Real Property with Scenic Tech Center 1984,relative to the sale of a 14,626 square foot portion of the right—of—way over the Santa Ana Trunk Sewer~in the vicinity of MacArthur Boulevard and Sunflower Avenue in the City of~Costa Mesa for the amount of $131,625.00,be,and is hereby,approved. Adjournment Moved,seconded and duly carried: That this meeting of the Board of Directors of County Sanit~ation District No.1 be adjourned.The Chairman then declared the meeting so adjourned at 5:00 P.M., May 29,1985. Secretary,Board of birectors County Sanitation Di~trict No.1 of Orange County,California —4—