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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 ************* 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. —2— 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 —3— a . . .