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HomeMy WebLinkAboutMinutes 1987-04-15COUNTY SANITATION DISTRICT NO.11 OF ORANGE COUNTY,CALIFORNIA MINUTES OF ADJOURNED REX3ULAR MEETING April 15,1987 —6:00 p.m. 10844 Ellis Avenue Fountain Valley,California Pursuant to adjournment of the regular meeting of April 8,1987,the Board of Directors of County Sanitation District No.11 of Orange County,California, met in an adjourned regular meeting at the above hour and date in the trct’s Administrative Office. The Chairman called the meeting to order the Secretary reported a quorum present. DIP~IORS PRESENT: at 6:05 p.m.The roll was called and Jack Kelly,Chairman,Tan Mays, Roger R.Stanton DIRE)C’BDRS ABSENT:None STAFF MEMBERS PRESENT:J.Wayne Sylvester,General Manager,Rita J.Brown,Secretary,Thçxnas M.Dawes, William H.Butler,Gary Streed,Hilary Baker, Thanas L.Woodruff,General Counsel, Don R.Griffin,Joint Chairman, Milo Keith,Bill Hartge,Victor Leipzig, Paul Cook,Richard Barnard,Bill Holinan, Grace Winchell,Carl Neuhausen,Jerry R. Wood,Susan Hori,Russel Behrens _________________________________ The Director of Engineering reviewed the _________________________________ current District’s Master Plan of _______________________________ Sewerage Facilities adopted in 1982. _________________________________ County Sanitation District No.11 is split into two separate drainage areas. The southerly portion drains through the existing reaches of the Coast Trunk Sewer directly to Treatment Plant No.2 in Huntington Beach.The northwesterly portion,bounded by Goldenwest on the east side and the San Diego Freeway on the north,including the Huntington Harbor area,drains to the Slater Avenue Pump Station between Goldenwest and Gothard,which lifts water over the Huntington Beach Mesa easterly to the Knott Interceptor and the Interplant Interceptor, owned jointly with other Districts,and then to Treatment Plant No.2. Since District 11’s formation a Coast Trunk Sewer system extending northwesterly fran Treatment Plant No.2 has been envisioned to serve the Huntington Beach area.Early studies were based on the assumption that District No.11 and the City of Huntington Beach boundaries would be coterininous.However,the City first developed in a northeasterly direction and that portion of the City is now in District No.3.In the early 1960’s the boundaries were extended westerly to include the Huntington Harbor area. OTHERS PRESENT: Review of Master Plan of Trunk Sewers to serve the District and long—term financial projections re capital and operating requirements ****************** —1— ~...~----..-.....~- District 11 04/15/87 Master Plans have been the basis for orderly develoçment of the District’s sewerage system since 1947.The current Consolidated Master Plan of Trunk Sewers for Districts 2,3 and 11 was prepared in 1982.For the last 10 years,the Coast Trunk Sewer has dominated planning and construction activities in District No.U. In 1979 the first leg of the Coast Trunk Sewer was awarded,extending from Treatment Plant No.2 in Huntington Beach northwesterly to Lake Street at Walnut Avenue.Completion of this project allowed the Hamilton Avenue Pump Station, located at Newland and Hamilton,to be abandoned and also relieved the Newland-Delaware Trunk Sewer and Atlanta Interceptor Sewer. In 1983 the Coast Trunk Sewer was extended to its present terminus,the west side of Goldenwest Street at Orange Avenue,providing relief for the Ocean Avenue Trunk Sewer, The 1982 Master Plan calls for the extension of the Coast Trunk Sewer to approximately Slater Avenue at Fi3.wards Street,This would provide relief to the existing Slater Avenue Pump Station.When the Coast Trunk Sewer is eventually extended in Slater Avenue,to just easterly of Goldenwest Street,the Slater Avenue Pump Station is proposed to be abandoned. Upon completion of the Coast Trunk Sewer system,District No.~ll could then sell its capacities in the Knott Interceptor and Interplant line (in Brookhurst Street between Ellis Avenue and Treatment Plant No.2)back to District No.3. Planned future extensions to relieve other existing District No.11 facilities include the Edwards Trunk Sewer,extending to McFadden Avenue frau Slater,and relief lines in Heil,Edinger and McFadden Avenues. Mr.Dawes advised that the Slater Avenue Pump Station currently discharges at a peak rate of 20 million gallons a day,the approximate design flow.Currently, all five pumps are required to handle the flows.The fifth pump,which would normally be a standby pump,now runs about five percent of the time.He expressed the staff’s concern relative to the reliability of this essential service facility with the continuing and increasing d~rands being placed on the Slater Avenue Pump Station.If two pumps were out of service,the station would be seriously overloaded.The Districts’Maintenance Division is currently providing extra xr~nitoring of this station to ensure continual operation. The Director of Engineering then reviewed proposed upcoming projects in connection with Coast Trunk Sewer collection system,and the estimated costs for construction of several relief lines needed,as well as a new pump station required to lift sewage into the Coast Trunk Sewer fran the lower elevations in the northwest portion of District No.11.The total cost of the facilities needed which would allow abandonment of the Slater Pump Station is approximately $19,300,000.This is in addition to the $11,000,000 spent to date for the first two reaches of the Coast Trunk Sewer. He also noted that completion of the Coast Trunk Sewer thus far has enabled relief of the Ocean Avenue Trunk Sewer.A consultant has been engaged to study the Ocean Avenue Trunk Sewer and recommend which portions of the sewer should be rehabilitated and turned over to the City of Huntington Beach for use as a local sewer and which should be abandoned.It is estimated that about $300,000 will be () needed to rehabilitate the line. —2— District 11 04/15/87 The Board briefly discussed the possibility of adjusting the boundaries of Districts 3 and 11 in order to eliminate the need for the Basic Accormiodation Agreement between said Districts.It provides for District No.11 to serve an area in District No.3 generally bounded by Garfield Avenue on the south,Beach Boulevard on the east and Central Park on the north;a second area,bounded by the Talbert Channel on the south and west,the Santa Ana River on the east,and Hamilton Avenue on the north,is within District No.11 but is served largely by District 3.Staff reported that a study of these areas will be undertaken in the near future to determine if boundary adjustments are appropriate. The Director of Finance then addressed the Board and reviewed long—term financial projections relative to the District’s capital and operating requirements.He pointed out that the primary source of revenue has been the District’s share of the property tax allocation.District il’s long-range financial plan for funding its master planned sewerage facilities provides that the Coast Trunk Sewer system shall be financed by the developers to be repaid fran future connection fees under terms and conditions established in a Master Plan Reimbursement Agreement. This policy was reaffirn~i in June 1986 when the Board of Directors elected to continue their policy of pay-as-you-go capital financing rather than encumbering a long—term debt by issuance of certificates of participation. Mr.Butler camiented on the schedule of collection system projects proposed over the next ten years.He also reviewed in detail various cash flow projections to outline the impacts on the District’s long—range financial position.He noted that based on the estimates at this time the District could experience both capital and operating shortfalls and move into a deficit position as soon as 1989.The major reason for this is the increased costs to operate the joint treatment works without a corresponding increase in tax revenues.It was pointed out that it will be necessary for the District to consider adjusting current fee schedules and implement additional revenue sources,such as supplemental user fees similar to those previously adopted by Districts 1,5,6 and 13,in order to maintain the District’s financial integrity. Following a general discussion and clarification of the cash flow projections, the Director of Finance advised the Board members that he would provide them with •revised copies reflecting corrections to the statements. Directing staff to study request Mr.Dawes reported on the request for for annexation of Bolsa Chica annexation of 1,520 acres of territory area further (Annexation No.19 -in the Bolsa Chica area received fran Signal Bolsa Annexation)and Signal Bolsa Corporation,the principal report back at a future meeting landowner.The Bolsa Chica area is presently outside the boundary of District No.11 but is included within its sphere of influence and is totally surrounded by the City of Huntington Beach.The District No.11 Master Plan and the Coast Trunk Sewer system were designed to provide sewerage service to the Bolsa Chica area,based on the assumption that it would eventually annex to the District. Several issues were addressed in connection with the annexation request, including the steps required to comply with the California Environmental Quality Act relative to preparation of an Environmental Impact Report;funding——both capital financing and operations and maintenance financing;determination of necessary easements in order to construct the sewerage facilities needed to serve —3-- District 11 04/15/87 this territory;consent to the annexation by the other property owners;advance funding by developer and construction scheduling;and the execution of an agreement with the major landowner setting forth the terms and conditions of the 0 annexation.With regard to who will provide the local sewer system it was pointed out that the local sewering agency for territory now within the boundaries of District No.11 is the City of Huntington Beach,but that a determination was yet to because the landowners had sponsored a bill in the State Legislature pro dng or the formation of the Balsa-Bay Harbor and ~nne~t±orr District which,ng other things,would be empowered to provide sewage collection and treatment services. The Directors entered into a lengthy discussion relative to the issues involved in connection with the proposed annexation.It was pointed out that resolution of the issues previously discussed and the terms and conditions of an annexation agreement with Signal Balsa Corporation had not yet been worked out.The Chair recognized Mr.Carl Neuhausen,representing Signal Landmark,who stated that he would like to review his cc~pany’s proposed annexation agreement.The General Counsel reported that Signal Landmark had presented a draft agreement but that it was unacceptable in its present form.It was the consensus of the Board m~bers that discussion of the proposed agreement should be held in abeyance until the District’s General Counsel and staff had an opportunity to review the terms and conditions with Signal Landmark and present an acceptable agreement to the Board m~bers for review and consideration. The Chairman then observed that at the present time,based on the status of the request received by the District,the Board of Directors have essentially the following options: —Approve the annexation request and adopt a resolution after public hearing 0 initiating the annexation procedures and authorizing the filing of an application,in the name of the District,to LAFC for its conduct of hearings. -To deny the annexation request.This would be done based on findings by the Board that it is not in the best interests of the District at this time. -Take no formal action,but refer the matter to the General Counsel and staff for further study and report back to the Board at a later date. It was then moved,seconded and duly carried: That the request for annexation of 1,520 acres of territory in the Balsa Chica area (proposed Annexation No.19 -Signal Bolsa Annexation to County Sanitation District No.11)be referred back to the General Counsel and staff for further study and discussions with representatives of the City of Huntington Beach, Signal Bolsa Corporation and other property owners to address the issues that need to be resolved and to attempt to work out terms and conditions of an annexation agreement and report back to the Board. The Chairman requested the General Counsel and staff to prepare a time schedule for the annexation proceedings for consideration by the Board at a future meeting. 4 0 H District 11 04/15/87 ~djournirent ~‘kDved,seconded and duly carried: That this meeting of the Board of Directors if County Sanitation District No.11 be adjourned.The Chairman then declared the meeting so adjourned at 7:22 p.m., April 15,1987. County Sanitation District No.11 of Orange County,California —5— I.. STATE OF CALIFORNIA) SS. COUNTY OF ORANGE Pursuant to California Government Code Section 54954.2, I hereby certify that the Agenda for the Adjourned Regular Board Meeting of District No.~held on S ,1987 was duly posted for public inspection at the main lobby of the District’s offices on Q..f~)~4..~,1987. IN WITNESS WHEREOF,I have hereunto set my hand this ____ day of Qç~.AL.Q...,1987. Rita J.Brown,Secretary of the Board of Directors of County Sanitation District No.~ of Orange County,California