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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 ************* 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 —2— 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 —3—