HomeMy WebLinkAboutMinutes 1986-05-21COUNTY SANITATION DISTRICT NO.6
OF ORANGE COUNTY,CALIFORNIA
MINUTES OF ADJOURNED REGULAR MEETING
May 21,1986 —4:30 P.M.
77 Fair Drive
Costa Mesa,California
Pursuant to the adjournment of the regular meeting of May 14,1986,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.
The Chairman called the meeting to order at ~4:3O p.m.In the absence of the
Secretary,Rita J.Brown,Chairman Wahner appointed Gary Streed Secretary pro
tern.The roll was called and the Secretary pro tern reported a quorum present.
DIRECTORS PRESENT:James Wahner,Chairman,Ruthelyn
P lummer
DIRECTORS ABSENT:Roger Stanton
STAFF MEMBERS PRESENT:J.Wayne Sylvester,General Manager,
William H.Butler,Gary Streed
OTHERS PRESENT:Thomas L.Woodruff,General Counsel
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Staff report on long—range The staff reported that in 1983 the
financial projections an~status of Board approved the following fee
program implementation schedule to help fund the Districts’
financial needs:
Single—Family Multi—Family Commercial/md!Effective
Fee Type Residential Residential Governmental/Other Date
One—time Connection $500 $500 $100 per 1,000 sq.April 8,1983
Fee ft.of building
Annual User Fee $26.40 per $15.85 per $18.90 per 1,000 July 9,1983
dwelling unit dwelling unit sq.ft.of building
This long—range financial program of connection fees to finance facilities
expansion and supplemental user fees to make up the shortfall of ad valorem tax
revenues was established to provide the additional financing required for both
operations and major facilities rehabilitation work.During the public workshops
and hearing held in 1983 to present the District’s proposed user fee program to
its constituents,the public was advised that the initial user fee schedule was
expected to increase substantially in the second year (1984)of the program to
cover rising costs,and then remain at the increased level for several years.
05/21/86
The District has been able to delay any increase in the supplemental user fee
since its inception due to a significant decline in inflation rates,receipt of
favorable bids on various District and joint works construction and
rehabilitation projects,and delays in various major plant projects,all of which
have reduced District expenditures below previously anticipated levels.In
addition,there was a major assessed valuation increase by the County Assessor on
certain properties that resulted in substantially increased property tax revenues
in 1984—85.This,combined with the positive impact of the formation of District
14 on District 6’s long—range financial position,has allowed the Board to
postpone any supplemental user fee and/or connection fee increases.
However,the staff reviewed long—range financial projections and reported that
recent changes in use restrictions and the taxable status of those same
properties that were revalued in 1984—85 have resulted in property assessment
exemptions by the County that have dropped the annual tax revenue to pre 1984—85
levels and will now require consideration of an increase in the existing fee
structure to maintain the financial integrity of the District’s capital and
operating funds over the next five years.
Staff contacts with both the County Assessor and Auditor—Controller’s offices
during the past month indicate that the District can expect to receive
approximately $560,000 less in ad valoretn tax revenues in 1986—87 and subsequent
years than originally anticipated before the change in use restrictions and tax
status of the previously mentioned properties.
Formation of District 14,including the sale of treatment plant equity by
District 6 to District 14 and the Districts—wide change to flow—based equity iii
the treatment works,will result in $2.2 million total additional capital
revenues for District 6.This additional revenue does not offset the lost ad
valorem revenues,however,and it appears necessary to consider increases in both
connection fees and supplemental user fees in 1986—87 and in future years to meet
the long—range operating and capital financing needs of the District to pay for
higher costs of advanced treatment required by state and federal regulatory
agencies.
Staff recommended that the Board consider adopting the following one—time
connection fee schedule:
Single/Multi—Family Commercial/Industrial
Dwelling Units Governmental/Other
$1,000 per dwelling $200 per 1,000 sq.ft.
unit of building
Connection fees are charged to new development to finance facilities expansion
required to serve such development.
Staff further recommended that the Board consider adopting the following user fee
schedule:
Single—Family Multi—Family Commercial/Industrial/
Residential Residential Governmental/Other
$29.04 per $17.44 per $20.79 per 1,000
dwelling unit dwelling unit sq.ft.of building
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User fees supplement the short fall of property tax revenues used to pay for
materials,operation costs and rehabilitation work.
The Board then entered into a general discussion of the Districts’financial
condition and alternatives for funding the Districts’requirements.
First reading of proposed It was moved,seconded and unanimously
Ordinance No.608 carried:
That Ordinance No.608,An Ordinance of the Board of Directors of County
Sanitation District No.6 of Orange County,California,Amending Ordinance
No.606 Pertaining to Sewer Connection Charges,be read by title only;and,
FURTHER MOVED:That reading of said entire ordinance be,and is hereby,waived.
Following the reading of Ordinance No.608 by title only,it was then moved,
seconded and duly carried:
That Ordinance No.608,An Ordinance of the Board of Directors of County
Sanitation District No.6 of Orange County,California,Amending Ordinance
No.606 Pertaining to Sewer Connection Charges,be introduced and passed to the
second reading on June 11.,1986 at~7:30 p.m.,at the District’s administrative
office.
First reading of proposed It was moved,seconded and unanimously
Ordinance No.609 carried:
That Ordinance No.609,An Ordinance of the Board of Directors of County
Sanitation District No.6 of Orange County,California,Amending Ordinance
•No.607 Pertaining to Sanitary Sewer Service Charges,be read by title only;and,
FURTHER MOVED:That reading of said entire ordinance be,and is hereby,waived.
Following the reading of Ordinance No.609 by title only,it was then moved,
seconded and duly carried:
That Ordinance No.609,An Ordinance of the Board of Directors of County
Sanitation District No.6 of Orange County,California,Amending Ordinance
No.607 Pertaining to Sanitary Sewer Service Charges,be introduced and passed to
the second reading on June 11,1986 at 7:30 p.m.,at the District’s
administrative office.
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 meeting so adjourned at 5:00 p.m.,
May 21,1986.
S~etaryf~o tem,Board of Directors
County Sa~Jtation District No.6 of
Orange County,California
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