HomeMy WebLinkAboutMinutes 1986-06-04;~COUNTY SANITATION DISTRICT NO.1
OF ORANGE COUNTY,CALIFORNIA
MINUTES OF ADJOURNED MEETING
June 4,1986 —5:00 P.M.
10844 Ellis Avenue
Fountain Valley,California
Pursuant to the adjournment of the adjourned regular meeting of May 28,
1986,the Board of Directors of County Sanitation District No.1 of Orange
County,California met in an adjourned meeting at the above hour and date in
the District’s Administrative Office.
The Chairman called the meeting to order at 5:25 p.m.The roll was called
and the Secretary reported a quorum present.
DIRECTORS PRESENT:Ron Hoesterey,Chairman,Robert
Hanson,Dan Griset
DIRECTORS ABSENT:Roger Stanton
STAFF MEMBERS PRESENT:J.Wayne Sylvester,General Manager,
Rita J.Brown,Secretary,William H.
Butler,Gary Streed
OTHERS PRESENT:Thomas L.Woodruff,General Counsel
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Staff report on long—range The staff reviewed the long—range
financial projections and status of financial plan that had been
program implementation implemented in 1984—85 which included
the following fee schedule to fund
the District’s requirements:
Connection Fees Effective 1/01/85
Single—Family Multi—Family Commercial/md!
Fee Type Residential Residential Governmental/Other
One—time Connection $500/Dwelling $500/Dwelling $100/1,000 sq.ft.
Fee Unit Unit of building
User Fees Effective 7/01/85
Water Meter Size Annual Fee
5/8”and 3/4”$26.40
1”and 14”52.50
2”105.00
3”210.00
4”420.00
6”840.00
06/04/86
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,maintenance,rehabilitation and major facilities rehabilitation work.
The program was adopted after considerable study to avoid a projected long—range
funding shortfall in revenues required to finance the District’s operating
expenses,which were escalating due to the rising cost of advanced treatment as
well as construction of master—planned treatment facilities improvements.At the
time the program was adopted it was understood that rates would have to be
progressively increased to meet the long—term needs.
The staff reviewed the updated projections which still reflect funding shortfalls
based on the current rate structure.
Although the recent formation of new District 14 has resulted in the District
receiving some capital funds for its share of the new District’s purchase of
capacity in the joint treatment and disposal facilities and reduced District l’s
proportionate share of future capital expansion of the joint facilities,the
positive financial impacts of District 14’s formation are offset by the Joint
Boards’concurrent shift to a 100%flow—based method of allocating ownership
share of joint treatment works which increased District l’s required equity.The
reason for this increase is District l’s lower proportionate tax base which was
previously a factor in calculating its joint works equity prior to the change to
a method that uses only flow.
Based on current projections,the District will have to increase its rate
structure over the next five years to generate additional revenues to ensure its
financial integrity.Staff pointed out many economic factors could affect the
rate structure requirements over the next several years.However,the staff
evaluates the District’s financial position each year to determine the impact of
changing conditions and thus,modifications or delays in fee increases in future
years could be accommodated if appropriate.Following further discussion of the
financing alternatives,it was moved,seconded and duly carried:
That the connection fee schedule be increased as follows:
Single/Multi—Family Commercial/Indus trial
Dwelling Units Governmental/Other
$1,000/Dwelling Unit $200/1,000 Sq.Ft.of
Building
FURTHER MOVED:That the existing user fee schedule be retained in effect for the
next fiscal year.
Staff was directed to evaluate the long—term financial projections again prior to
consideration of the rate structures for 1987—88 and report back to the Board at
that time.
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First reading of proposed It was moved,seconded and unanimously
Ordinance No.108 carried:
That Ordinance No.108,An Ordinance of the Board of Directors of County
S Sanitation District No.1 of Orange County,California,Amending Ordinance
No.104 Establishing Sewer Connection Charges for Use of District Sewerage
Facilities,and Repealing Ordinance No.105,be read by title only;and,
FURTHER NOVED:That reading of said entire ordinance be,and is hereby,waived.
Following the reading of Ordinance No.108 by title only,it was then moved,
seconded and duly carried:
That Ordinance No.108,An Ordinance of the Board of Directors of County
Sanitation District No.1 of Orange County,California,Amending Ordinance
No.104 Establishing Sewer Connection Charges for Use of District Sewerage
Facilities,and Repealing Ordinance No.105,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.1
be adjourned.The Chairman then declared the meeting so adjourned at 5:50 p.m.,
June 4,1986.
Secretary,Board of Directors
County Sanitation District No.1 of
Orange County,California
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