HomeMy WebLinkAboutMinutes 1987-05-20•-
CO~S~ITATION DI~I~~.3
OF ORANGE couNIY,CALIFORNIA
MINUTES OF ADJOURNED REGULAR MEE~PING
May 20,1987 —7:30 p.m.
10844 Ellis Avenue
Fountain Valley,California
Pursuant to adjournment of the regular meeting of May 13,1987,the Board of
Directors of County Sanitation District No.3 of Orange County,California,
met in an adjourned regular meeting at the above hour and date.
The Chairman called the meeting to order at 7:30 p.m.The roll was called and
the Secretary reported a quorun present.
DIREL”flDRS PRESENT:Richard Polis,Chairman,Frank Clift,
Norman E.Culver,Don R.Griffin,Dan
Griset,John Kanel,James Neal,Chris
Norby,Sal Sapien,J.R.“Bob”Siëfen,
Roger R.Stanton,Charles Sylvia and
Dorothy Wedel
DIRECIORS ABSENT:Ben Bay,Jack Kelly and Carrey Nelson
STAFF ME~’4BERS PRESENT:J.Wayne Sylvester,General Manager,
Rita J.Brown,Secretary,William H.
Butler and Thauas M.Dawes
GPHERS PRESENT:Joe Hartge and Bruce Boc’~nan
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Review of Master Plan of Trunk Following a briefing by the General
Sewers to serve the District Manager on the master planning utilized
by the District to assure that the
sewerage facilities needed to serve the cannunities within the District and canply
with applicable regulatory requirements are properly planned for and constructed,
the Director of Engineering reviewed the current Master Plan of Trunk Sewers
adopted in 1983,and the status of the District’s rehabilitation program.
In the next fiscal year an update of the Master Plan for the Joint Works and each
of the individual Districts including District 3’s collection system is planned.
New land use plans will be developed based on information which will be obtained
froa~t each.of the cities and the County.
In 1983 a study was ccztipleted which identified several new interceptor sewers
that would be required,but rrcst of them have not yet been constructed.Land use
changes in the last few years have been dramatic in the carinunities served by the
District and the revised general plans of the cities reflect additional
developi~nt and much higher densities.Staff has therefore recorrinended delaying
construction of new facilities until such time as the master plan update is
completed.
The 1983 report also recarniended that County Sanitation District No.3 sell
capacity in the Knott Interceptor to Cour~ty Sanitation District No.2.At that
time it was believed that the Knott Interceptor would have sufficient capacity
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District 3
05/20/87
for District No.2 ‘s use However,because of the aforementioned land use
changes taking place,District No.2 has restudied its drainage areas and has
determined that it will build a new sewer line in Euclid Avenue which eliminates
the need for capacity in the Knott Interceptor.This change fran the 1983 Plan
was approved because it was felt that the available capacity in the Knott
Interceptor would be needed by District No.3 in the future.
In April of this year the District awarded the third contract for rehabilitation
of vaults on the Miller—Holder Trunk Sewer.The sewer was built in 1959 with
polyvinyl chloride (PVC)liner but the PVC was not placed in the manhole vaults.
The $4.3 million contract includes rehabilitation of 73 vaults,sane of which are
located in the busiest street intersections in western Orange County,that will
be refurbished and lined.
There are 250 vaults and manholes on the Miller-Holder Trunk Sewer.Twenty
vaults were rehabilitated under the two previous contracts.The remaining work
will be less costly on a unit cost basis since the structures which had suffered
the highest degree of deterioration were undertaken first.
Mr.Dawes reviewed further rehabilitation work needed on the Los Alaniltos
Subtrunk Sewer in Los Alamitos Boulevard where the pipe is cracked south of
Orangewood Avenue;and on the Westside Relief Interceptor Sewer in Moody Street
south of Crescent Avenue where the line is cracked beneath a railroad crossing.
Plans for the work were approved by the Directors at the May 13th Board Meeting.
The estimated cost is $150,000.
The Director of Engineering then reported that there are two areas in Districts
Nos.3 and 11 for which service area exchanges should be considered.The first
area,within District No.11 and served by District No.3 facilities,includes Q
approximately 850 acres west of the Santa Ana River and generally south of
Hamilton Avenue.The second area,within District No.3 and served by District
No.11 facilities,includes approximately 1,060 acres,850 of which are served by
the Slater Pump Station.This area,large portions of which are undeveloped,is
bounded by Garfield Avenue on the south,Beach Boulevard on the east and Central
Park on the north.
Mr.Dawes reported that staff is studying alternative ways to accunmodate these
service areas which could include a collector trunk capacity purchase/sale in the
serving—District’s facilities;creation of special zones to balance connection
fees;or annexation/deannexation in order that District boundaries more closely
resemble service areas.The staff is just beginning preliminary studies and will
be reporting back to the Boards of Districts 3 and 11 at future meetings.
The Board then entered into a general discussion of the master planning,the
rehabilitation work and the issue of service areas between Districts during which
staff answered several questions that were posed by the Directors.
Review of long-range financial The General Manager provided an overview
projections re capital and of the District No.3 financing
operating requirements programs.The capital costs of
constructing the trunk sewer collection
system and the share (approximately .one—third)of the joint works treatment plant
costs have historically been financed by a variety of sources including issuance
of long—term debt securities;portions of the ad valorem tax;construction grant
monies;and connection fees.Operating costs are currently financed by the
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District 3
05/20/87
District’s share of the ad valorem taxes.Mr.Sylvester stated that the effects
of Proposition 13 are beginning to impact the District’s ability to finance the
rising costs of sewage service brought about by certain inflationary trends and
stricter requirements of federal and state regulatory agencies for advanced
treatment.Ad valorem taxes are no longer available to allocate to capital costs
and are now totally appropriated to cover operating costs.Mr.Sylvester also
provided an overview of the District’s practices for projecting short and
long—term funding requirements and the financing strategies utilized by other
Districts in the Joint Administrative Organization that have found it necessary
to implement additional sources of revenue to assure the financial integrity of
those Districts.
The Director of Finance then reviewed the long—range financial projection
schedules and provided an overview of the District’s financial position for the
next ten years based on existing fee structures and several alternative new
and/or escalating fee structures •He reported that without a program of
systematic fee adjustments over the next several years,the District will
experience revenue shortfalls in the capital and operating funds and the
District’s financial integrity will be jeopardized.
Mr.Butler reviewed fee schedules in effect in other Districts and advised the
Directors that the Board should consider adjustments to the District’s connection
fee program,whereby developers pay a one-time connection fee to finance the
planning,design and construction of expanding the facilities necessary to
accarniodate the flow generated by the new deve1o~zrent,which presently has in
effect the following fee schedule:
Single/Multi—Family Carniercial/Industrial
Dwelling Units Governmental/Other
$250 per dwelling $50 per 1,000 sq.ft.
The Director of Finance further reported on the District’s need to consider
additional funding sources such as a supplemental user fee program in the next
few years to avoid a projected deficit beginning as soon as 1989 in the
District’s operating fund.The anticipated deficit could reach as much as
$49 million by 1995—96 unless additional revenue sources are generated.He also
reviewed various ways of collecting alternative revenue sources to finance
shortfalls in the District’s operating fund when ad valorem tax revenues are
insufficent to pay the District’s operations,maintenance and replacement costs.
The irost cost-effective method (and the method already adopted by Districts 1,5,
6 and 13)is to place a supplemental user fee as a special assessment on the
County of Orange property tax bill issued annually to all property ~ners in the
County.
Mr.Butler further reviewed the District’s cash position should the Directors
choose to implement the following proposed supplemental user fee schedule which
is similar to the fees adopted by the other Districts that have found it
necessary to implement user fees to make up funding shortfalls:
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District 3
05/20/87
1988—89
Class of User Basis of Charge Annual Rate*
Single—Family Charge per Dwelling $26.40 ()H
Dwellings/Condaniniums Unit
Multi-Family Charge per Dwelling 15.85
Dwellings/Apartments/Unit
Mobile Hares
Camiercial/Industrial/Charge per 1,000 18.90
Other (governmental sq.ft.of building
buildings,utilities,
non—profit
organizations,etc.)
*Identical to Districts 1 and 5.District 6 adopted this rate in 1983 but
has found it necessary to increase by 20%.District 13,which receives no
ad valorem taxes,is $70/year.
The Board then entered into a lengthy discussion relative to various events that
have impacted the District’s financial position in the past and events that may
impact it in the future including state and federal regulatory requirements and
develo~ent within the District;and how modifications to the Districts
long-range financial plans might be made and implemented.Also reviewed were
cost-cutting measures that have been implemented by the Districts to keep
expenses down.
It was then moved and seconded:
That the Board establish a supplemental user fee of $24.00 per dwelling unit
effective in 1988—89 and increase it to $30.00 per dwelling unit in 1990—91,and
that the existing connection fees be increased to $1,000 per dwelling unit in
1987—88 for single/multi—family dwelling units and $300 per 1,000 sq.ft.of
c~nmercial/industrial/governmenta1 buildings,and that said fees be increased to
$1,500 and $500,respectively,in 1989—90,following an annual review of the
District’s revenue requirements.
After further discussions,the following amended motion was offered,seconded and
duly carried:
That the staff be,and is hereby,directed to draft a tentative financial plan
and implementation schedule for addressing the District’s loz~g~ran~é’~financial
requirements,for subsequent consideration by the Board,—utilizing the following
fee and implenentation guidelines:
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District 3
05/20/87
Implementation of a Supplemental User Fee Program
1988—89 1990—91
Class of User Basis of Charge Annual Rate Annual Rate
Single—Family Charge per
Dwellings/Condaniniums Dwelling Unit $24.00 $30.00
Revisions to Existing Connection Fee Program
Basis of Charge 1987—88 1989—90
Sing1e4~4ulti-Family Charge per
Dwelling Units Dwelling Unit $1,000.00 $1,500.00
Carinercial/Industrial Charge per
Governmental/Other 1,000 sq.ft.$300.00 $500.00
FURTHER ~)VED:That staff be,and is hereby,granted discretion to n~dify the
guideline fee anounts and proposed implementation dates in drafting said
long—range financial plan for consideration by the Board.
Approving Fktergency Repairs to Following a report by the Director of
Miller-Holder Trunk Sewer,La Habra Engineering it was noved,seconded and
Purchase Section,Lines “E”&“WI duly carried:
(No.3—32R
That the Staff Report dated May 20,
1987,relative to the failure of the Miller—Holder Trunk Sewer,La Habra Purchase
Section,Lines “E”&“WI’,be,and is hereby,received and ordered filed;and,
FURTHER MDVED:That the staff be,and is hereby,authorized to procure necessary
materials,supplies and services for flt~rgency Repairs to Miller-Holder Trunk
Sewer,La Habra Purchase Section,Lines “E”&“WI’(Contract No.3-32R)for a
total aiTount not to exceed $100,000.00.
Adiournnent r4~ved,seconded and duly carried:
That this meeting of the Board of Directors of County Sanitation District No.3
be adjourned.The Chairman then declared the meeting so adjourned at 9:07 p.m.,
May 20,1987.
Secretary,of Directors
County Sanitation District No.3 of
Orange County,California
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.
.
.
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.3 held on ______________,1987 was
duly posted for public inspection at the main lobby of the
District’s offices on ~~.4 ,1987.
IN WITNESS WHEREOF,I have hereunto set my hand this I4~I~~
day of _______________,1987.
~
Rita J.Brown,Secre ary of the
Board of Directors of County
Sanitation District No..
of Orange County,California