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HomeMy WebLinkAboutMinutes 1986-05-28COUNTY SANITATION DISTRICT NO.5 OF ORANGE COUNTY,CALIFORNIA MINUTES OF ADJOURNED REGULAR MEETING May 28,1986 —7:30 P.M. 10844 Ellis Avenue Fountain Valley,California Pursuant to the adjournment of the regular meeting of May 14,1986,the Board of Directors of County Sanitation District No.5 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 8:15 p.m.immediately following the Executive Committee meeting.In the absence of the Secretary,Rita J. Brown,Chairman Hart appointed Gary Streed Secretary pro tern.The roll was called and the Secretary pro tern reported a quorum present. DIRECTORS PRESENT:Evelyn Hart,Chairman,Ruthelyn Pluinmer,Roger Stanton DIRECTORS ABSENT:None STAFF MEMBERS PRESENT:J.Wayne Sylvester,General Manager, Thomas M.Dawes,William H.Butler, Gary Streed OTHERS PRESENT:Thomas L.Woodruff,General Counsel, Sat Tamarabuchi,Diane Dzierski ************* ___________________________________ Tom Dawes,Director of Engineering, ____________________________________ distributed a map of District 5 showing ____________________________________ the existing and proposed sewerage ______________________________________ facilities and reviewed the status of capital improvement and rehabilitation the seven year schedule of projects focusing on requirements to serve the expanding Newport Center area and development proposed in the downcoast area by The Irvine Company.The downcoast territory is planned to be served by connecting to City of Newport Beach facilities and that will deliver the wastewater to new District No.5 trunk sewer facilities. Directors discussed the impact of this development on existing facilities and on the Master Plan and on future financing.Mr.Dawes indicated that staff was reviewing the connection fee in Zone 3,the downcoast area,and the possibility of a reimbursement agreement with The Irvine Company for construction of the necessary facilities to serve the area. Following the discussion,the Board directed staff to advise The Irvine Company of the need for specific data and information relative to development plans in order that the District may complete the necessary sewerage facilities planning, scheduling and financing to serve the areas within the District’s boundaries. Status report on the District’s sewer rehabilitation program and Master Plan of facilities to serve the District projects.Mr.Dawes then reviewed —1— Q5t28/86 Review of long—range financial The staff reported.that in 1981,the program projections Board adopted a supplemental user fee program to make up the shortfall of ad valorem tax revenues and provide needed additional financing for operations and major rehabilitation work on the sewer system.The following fee schedule is currently in effect: Single Unit Parcels Connected Meter Size Annual Fee 1”or less $26.40 52.50 2”105.00 3”210.00 4”420.00 6”840.00 8”1,680.00 If parcel contains more than one water meter,then the charge applicable to each meter shall be added together,and the sum levied against the parcel. Multi—Unit Parcels Per Unit $15.85 When the program was originally presented to the public and adopted by the Board, it was anticipated that it would be necessary to increase the fees by approximately 77%beginning with the second year to finance the rehabilitation work on the trunk sewer system.The District has been able to delay any increase in the supplemental user fees originally adopted in 1981 due to a significant decline Ira 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 well below budgeted levels. In addition,on the revenue side of the budget,the turnaround in economic conditions and the resultant new construction and resale activity over the past few years have resulted in a significant increase in the assessed valuation of properties in the District,which has generated additional ad valorem tax revenues for the District.Further,the formation of new District 14 has resulted in the District receiving approximately $2,000,000 from the new District’s purchase of capacity in the joint treatment and disposal facilities. The positive financial impacts of District 14’s formation on District 5 are further reinforced by the Joint Districts’concurrent shift to a 100%flow—based method of allocating ownership and each District’s share of joint treatment works construction costs. The staff reviewed the long—term financial projections which indicate that the revenues generated by the District’s current supplemental user fee schedule in combination with the District’s higher ad valorem tax revenues will be sufficient to fund 100%of the District’s operating expenses for the next five years.The cash flow projections also indicate that the District’s projected capital revenues will provide sufficient funds to finance the master planned projects over the next five years. —2— .05r28/86 Staff recommended that the Board retain the current connection fee and supplemental user fee schedules through 1986—87 based upon the District’s projected favorable financial position.Staff further reported that it was evaluating the impact of proposed new development on the District’s sewage system and,upon completion of that study,will report to the Board with respect to the connection fee schedule. It was then moved,seconded and duly carried that the staff’s recommendation to retain the current fee schedules be,and is hereby,approved. Adjournment Moved,seconded and duly carried: That this meeting of the Board of Directors of County Sanitation Distiict No.5 be adjourned.The Chairman then declared the meeting so adjourned at 8:45 p.m., May 28,1986. S~retary)~ro tern,Board of Directors Cdunty Sanitation District No.5 of Orange County,California —3—